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HomeMy WebLinkAbout2004-06-10 - Agendas - Final • AIRPORT BOARD MEETING June 10, 2004 1 :30 p.m. Airport Conference Room 4500 S. School Avenue 1 . Welcome. 2. Minutes of the April 8, 2004 meeting. 3 . Minutes of the May 13, 2004 meeting. 4. Minutes of the May 26, 2004 meeting. 5. Receiving of Reports. A. Charles Wallace, Chairman B. Ray Boudreaux, Director C. Louise Powers, T-Hangar Report. D. James Nicholson, Financial Coordinator. • E. Construction Report. F. Maintenance Report. 6. Old Business. A. T-Hangar Project Progress Report B. USPS Lease. ACTION REQUESTED : Recommend lease be submitted to the City's Contract Review process for signature by the Mayor. 7. New Business. A. Disadvantage Business Enterprise (DBE) Program 2004 . ACTION REQUESTED: Recommend the "Draft" DBE document be submitted to the City Council for approval. 8. Other Business. A. Items from the Public. B. Items from the Airport Board. 9. Adjourn. AIRPORT BOARD MEETING • April 8, 2004 MEMBERS PRESENT: Charles Wallace, Frank Sprerandeo, Dave Bowman, Bob Nickle, David Hollman, Janice Stanesic MEMBERS ABSENT: Otto Loewer OTHERS PRESENT: John P. Ross-Ross Executive Aviation, Inc., Judy Hammond-Arkansas Air Museum, Tim McClurg and Mike Kratchmer-Ark. Aviation Tech. Center, Charles Caldwell- tenant, Wayne Jones-McClel lend Engineers, Charlie Morash-NW Ark. Times, Jim Hillabrand- tenant, Rick McKinney-tenant, Terry Collier-tenant, Dr. Vaughn DeCoster-tenant STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers ITEM #1 : Welcome, Charles Wallace, Chairman. Thanked all that were attending in person and the TV audience, and also thanked Dr. Loewer for moderating the meeting in February. Explained there were no minutes for March because there was no meeting. He thanked staff for providing books for the Board members' agendas. ITEM #2 : Minutes of the February 12, 2004 meeting. • A motion to approve the minutes was made by Bob Nickle, but questioned who had made the motion shown at the top of Page 3 for the T-hangar. The motion was seconded by Dave Hotlman. Following discussion, Chairman Wallace asked that the February 12`h minutes reflect the motion was made by consensus of the Board. The motion carried. ITEM #3 : Receiving of Reports. A. Charles Wallace, Chairman, reported the Board met on March 31 " for a Strategic Planning Meeting and had revisited their goals and successes. He related that Ray has received a mandate from the City for the Airport to be self-sufficient by 2006. C. Wallace wanted the audience to know the Board is concerned. He said we need to state clearly, using numbers, the economic impact this airport has on the community. Four assignments came out of the meeting: Ray to gather economic impact information, possibly by sharing a program with other City departments; Dave Bowman will gather the market outlook and trends; Frank Sperandeo will gather information. from AOPA that will help us understand their research that helps general aviation airports; Ray will review the budget, in case payment is needed for a study. At the Strategic Planning Meeting we also reviewed the 2004 Capital Program. We approve each project as it comes along, and we need to evaluate the investment, as well as the return. Projects for 2004: Taxiway Alpha and Taxiway Extension; Roof repairs for the T-Hangars; Construct a T-Hangar; • and a Marketing Program. He commented that twice this week he had heard "that the big planes subsidize the little ones", and he felt that comments shouldn't be said that one supports the other. Another comment he had heard is "those folks over there (Airport Management) aren't interested 1 1 in the folks over here (cast ramp tenants)". That is not true, pointing out a new self serve fuel • facility has been opened and a new T-Hangar is being built. B. Ray Boudreaux, Director. Mentioning some items in his report, he announced the self serve fueling facility for AvGas is open. The 87 Octane tank should be here by the middle of April and installed by the end of April. He stated in March he had attended the Annual FAA Conference and had defended the need for the connecting taxiway, a safety project, which would allow two entrances to the Forest Service Ramp. The Arkansas Aeronautics Commission approved a grant for $ 100,000 towards the new T-Hangar. Due to some failures of fueling equipment, we have entered into a preventive maintenance contract with Aircraft Maintenance Professional to work on our trucks. James is preparing the RFP for a fueling contract, which has to go out for bids every three years. The Airport has received the FAA Cost/Benefit Analysis letter for the tower costs. We are scheduled to begin paying February 1 , 2005. Our part will be 59%, instead of 75% as previously told. We are preparing a letter to request consideration of additional reductions. R. Boudreaux introduced Dr. Vaughn DeCoster, saying he would tell about the Fly-In last Saturday. Dr. DeCoster stated he was the Wing Leader of the NW Arkansas Angel Flight. Angel Flight has 870 pilots in the program. The Fly In had remarkable success with about 50 in attendance with standing room only. There were three FAA Safety Seminars and twelve new pilots signed up for Angel Flight. Several aviation businesses donated items for prizes, a lot of pilots bought the $ 1 .95 fuel. AirNav had some nice comments about the airport. C. James Nicholson, Financial Coordinator. Fuel sales were average in March even with • some bad weather days. The self serve sold 1 ,200 gallons during the last two weeks in March and 2,000 gallons were sold in the first week in April. Full service AvGas sales have only dropped a little. C. Wallace mentioned the $ 1 .95 per gallon price at the self serve is barely at a break even point. The Self Serve Facility is owned by the City of Fayetteville and we can not sell the fuel at a loss. J. Nicholson reported they had ordered a load of fuel that day and the cost had dropped five cents. The self serve price would remain at $ 1 .95 a while longer. Local airports have increased all their fuel prices by five to ten cents and we remain lower than all except for Siloam Springs. About 80% of our fuel sales are for Jet, and 20% are for AvGas. C. Wallace, speaking of the Financial Report, said the revenues are going up. R. Boudreaux stated they had taken the 60' x 60' hangar out of this year's budget. J. Nicholson reported our operations have continued to grow. R. Boudreaux explained staff had replaced a compressor on the terminal's heat and air system, but haven't received a cost estimate for the repairs for the boilers. R. Boudreaux answering questions said the Airport is responsible for the repairs on the fuel trucks, and lately they have been numerous. AV Fuel does re-pay the Airport for some of the repairs. D. Construction Report, Wayne Jones. Reported the foundation for the U. of A. hangar is being poured today. The T-Hangar plans are almost completed and should be advertised next week, with the contract going to the City Council the second week in May. He said Ray had requested an electrical engineer to look at T-Hangars "A" through "D" to evaluate the cause for fuses being blown. He will look at the load on each breaker now as compared to when the hangars were constructed. Each breaker serves two to three bays. The new hangar will have a breaker for each bay and more lights. There was a minor delay in the taxiway project because an archeological site was shown by the State. The archeologist is writing a letter to the State saying • the area had been used as a farm field and other construction has been performed in that area. R. Boudreaux stated he had been notified yesterday of a water drainage problem to part of the east side of T-Hangar G. The problem was to have been corrected when we installed the new drains. W. Jones said today before the meeting he had gone to the hangar, poured buckets of water over 2 J the porous cement. Some areas do not accept the water at the same rate as others. The problem • has just been reported and now it has been too long to go back to the contractor. The cause could have been that there was more cement content in that particular delivery. The drain has 4" of porous cement on top, then filter media, then the drain. Solution would be to remove and replace. Mr. Hillabrand stated he had just bought a hangar in Rogers and would be moving out of the moldy hangar, but he would come back to buy fuel and visit with his friends. R. Boudreaux asked Mr. Jones to find a solution and the cost. He asked that if tenants in T-Hangars E, F, and G have problems, to come to him. He stated the new hangars will have the crown in the middle. The bid will have an option for a concrete floor. E. Maintenance Report. R. Boudreaux said the guys have been getting ready for the mowing season. They replaced the compressor system in the HVAC in the terminal. There has been work on the gates. Superior' s hangar door was repaired. Water hoses installed for washing aircraft. Regular sweeping of the ramps happens monthly. The sweeper has been in the shop and was returned just yesterday. ITEM 94: Old Business. None. ITEM #5: New Business. A. Phoenix Rising Aviation lease for hangar. A motion to approve the lease and forward on through the City's Staff Review process was made by Dave Bowman and seconded by Frank Sperandeo. The motion carried. • B. Taxiway "A" Phase II and Taxiway "E" Project, 95% FAA AIP Grant and 5% State of Arkansas Aeronautics Grant. R. Boudreaux said the FAA Grant is 95% of the project and the State Grant is 5%. We won't be spending any local funds on the project. We need approval from the Board to proceed, and there are several items that come with the approval: To proceed with the FAA Grant Application; Receiving the FAA Grant; The Grant Application with the State, Receiving the State Grant, and a Task Order to McClelland Engineers to design the project, for construction management and for construction over-site. These items will go on to the City Council for approval A motion to approve the Taxiway "A" Phase II and Taxiway "E" Project and associated items listed by Ray, was made by Bob Nickle and seconded by David Holtman. The motion carried. C. Discussion reqarding the 100' x 200' Business Hangar mentioned in the Transportation Appropriations Bill. R. Boudreaux explained Senator Lincoln had asked what we needed to create revenue streams. We told her hangars, and asked if she could put one million dollars in a set aside in the Bill. It was put in the Bill, but, unfortunately no money was attached in the Bill. Don Hams, our FAA Project Manager, originally said to put together the request, but yesterday he told us that we didn't have a chance for funding, they are only funding safety items. A motion to defer the item to a later time was made by Frank Sperandeo and • seconded by David Holtman. The motion carried. D. Self-Serve Fueling Facility marketing program. R. Boudreaux said a post card announcing the self-serve fuel price was sent to all aircraft owners within counties of 120 miles 3 of Drake Field. The mailing was sent to 4, 112 aircraft owners with an estimated cost of $980.00. • He said the fuel prices are also listed on AirNav and is read world wide. J. Nicholson said the printed post cards were delivered to MAILCO today and will be mailed on Friday or Monday. This is direct marketing and will get our name out there before pilots. C. Wallace turned the floor over to Frank Sperandeo to present a marketing report. F. Sperandeo strongly recommended following the MARS plan and he felt the MARS plan could save the airport. M stands for Marketing, A for Activity, R for Revenue, and S for Success. He stated if we followed MARS the activity would be up 30 to 40% by this time next year. He displayed a United States map showing the cross country flight routes to and from major cities. Most of the routes go over Arkansas. He related that most pilots will seek the airports with the lowest cost of fuel. You can punch in your flight designation on AirNav and they will give you the airports along your flight plan with the lowest cost of fuel. It also has a place where pilots can enter comments. He handed out information from AirNav on Drake Field that goes back to March 2001 , showing the comments pilots have made about Drake Field. He also proposed the airport to take part in an ad campaign with AOPA. The cost would be $2,600 and payment would not be due until January 2005. The ad has to be in by May 1 't. B. Nickle suggested requesting help form the A & P Commission. R. Boudreaux said the AOPA FBO book is published every two years and some of the information is incorrect and needs updated. V. DeCoster said all the information can be updated online, and most pilots look it up online, rather than using the book. He suggested using the money to update the airport's website. Following discussion, C. Wallace thanked Mr. Sperandeo and stated the ad would be discussed at the next Strategic Planning Meeting. • E. Tower Benefit/Cost Analysis discussion. C. Wallace stated the item would be deferred to a later Board meeting, it had already been discussed today. ITEM #6: Other Business. A. Items from the Public. None. B. Items from the Airport Board. F. Sperandeo mentioned airport maintenance. C. Presentation to Arkansas Air Museum. Dave Bowman presented an American Eagle award from the NW Arkansas Community College to the Arkansas Air Museum. Judy Hammond, Museum Director, accepted the award and expressed her appreciation. She discussed AirFest, some AirFest acts, and displayed the new Tee Shirt for AirFest. C. Wallace announced the Young Eagles event is scheduled for May 8`", and also announced the Tenant BarBQue on the airport's east ramp will be on May 8a', adding they needed volunteers for the mid-day cookout. Information will be sent in the next billing. Meeting Adjourned at 3:45. • Dave Bowman, Secretary Date 4 MINUTES OF THE AIRPORT BOARD MEETING May 13, 2004 MEMBERS PRESENT: Charles Wallace, Otto Loewer, Frank Sperandeo, Bob Nickle, David Hollman, Janice Stanesic MEMBERS ABSENT: Dave Bowman STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Judy Hammond-Ark. Air Museum, Bob Burgage-tenant, Terry Collier-tenant, Rick McKinney-tenant, Wayne Jones-McClelland Engineers, Chris Cheadle-Fayetteville Government Channel ITEM #1 : Welcome, Charles Wallace. Thanked those watching on TV and those attending in the audience. ITEM #2 : Receiving of Reports. A. Charles Wallace, Chairman. Reported on the tenant Barbeque held last Saturday on the new patio at the Pilots Briefing Room, and recognition of Bill Corely's promotion to Captain status. Thanked Rick McKinney who helped organize the event. He told of the Airport Board's work in the Strategic Planning Meeting and information being gathered on Economic Development, Marketing, and the Capital Improvement Projects for the airport. The Board wants to increase the local awareness through community relationships to see the value of the airport. B. Ray Boudreaux, Director. Said the Forest Service will hold a pre-bid conference here for their project in early June and award the contracts on June 24. The airport has received written confirmation of a grant to construction Taxiway E and to extend Taxiway A. Said the new self-serve Av Gas facility is doing well and spoke of the Mo Gas tank going in. Mentioned the attachment to his report, an estimate of $ 13,500 per hangar for upgrading the electric in the T-Hangars, saying if any changes are made to the electric then all of the electric in the hangar(s) would have to be brought up to the current electrical code. Said he talked with Jeff Collins, Director of the U. of A. College of Business, and he advised to not do the economic impact study yet, but the cost would be about $26,000. Also in the agenda packet is a draft letter to the FAA requesting consideration of further reduction in the amount the airport will be required to pay. Spoke of the drainage problem at T-Hangar G that was brought to our attention last month. In part of the drainage the cement wasn't porous and isn't draining the water. McClelland Engineering tried drilling a pattern of holes in the cement and it still didn't drain. It involves 15 to 20% of the drainage project we installed several years ago. Guttering was discussed by the Board, and Wayne Jones explained it wasn't feasible. Following further discussion by the Board, they asked Mr. Boudreaux to undertake the 1 . project to correct the problem, starting giving the contractor an opportunity to correct the problem at their cost because it had been their mistake, rather than hiring him to correct the problem. Mr. Boudreaux continuing with his report, spoke of the Fayetteville Economic Development Council — FEDC. Said he had been working closely with the Mayor, Bill Stafford of the U. of A., the Chamber and Tom Deweese of SWEPCO to fill the director's position. He stated 25 resumes had been received. C. Louise Powers, T-Hangar Report. One T-Hangar tenant canceled his lease and we have one new tenant. All T-Hangars are rented. There are twelve people on the waiting list. In the FBO Hangar last month, there were seven short term tenants and six long term tenants. D. James Nicholson, Financial Coordinator. The chart reflects an increase in traffic and the tower has reported a lot of people are stopping in for the self serve fuel. The fuel sales are slightly ahead of last year. He said the base customers are using the self serve and there has been an increase in Av Gas sales. The average purchase is 30 to 35 gallons. C. Wallace asked a bulletin board be installed by the self serve fueling facility inviting people over to the terminal and Air Museum. Speaking of the Financial Report, he told of the repairs to the boilers, and did not have to replace them. He said he had taken the 60' x 60' hangar from the Capital projects and left in replacing the airport entrance. After reviewing the charts, C. Wallace said it looked like the more our revenue increased, the more we lose. C. Wallace stated the cost of fuel is exceeding the cost what we are selling it for at the self serve, saying that as a government entity we can't sell it for less than we buy it. The way to fix a deficit is to increase revenues or decrease expenses. He asked that at the next Board Meeting a copy of the report be provided to the audience so that they can follow along as it is discussed. E. Wayne Jones, Construction Report. The work schedule will be provided next week for the Taxiway Project. The wintertime Stop Work didn't create any problems on the project. The U. of A. Hangar has steel going up. Their rolling door came in Monday. They are working on the roadway and parking lot. It should be completed by June or mid-July. The design work has begun on Taxiway A and E, it will be advertised on June 14`h and bid opening date around the end of June, with Council approval at end of July. It should be completed by the end of the year. He said he anticipated some night time closure of the Airport during the construction, but that has been done here before with no problems. F. Sperandeo handed out copies of an article telling large air tankers the Forest Service uses would be grounded. The article is attached as part of the minutes. R. Boudreaux explained he had already talked with the Forest Service at length and it will not affect their lease or plans to use this airport, they will use different aircraft and helicopters. F. Maintenance Report. The guys built the new patio for the Pilots Briefing Room, repaired Superior's door, Doc's storage unit has a new dam, the flood floated up an electric can and damaged the mower and the electrical system. The FAA Certification Inspection will be in August and had maintenance make a list. Again with flood there has been some erosion. A large sink hole developed damaging some electric oil the airfield and that was fixed and the hole filled. They are working on the Mo Gas facility today. F. Sperandeo handed out copies of his score card on maintenance, and then . handed out a page titled "How Does Pilot Character Contribute to Accidents?" Both are attached as part of the minutes. 2 ITEM #4 : Old Business. None. ITEM #5: New Business. A. Contract for T-Hangar "H". C. Wallace said the bids came in over the estimate and Ray is looking at ways to build the hangar and still meet the building codes. W. Jones said all bids were rejected. R. Boudreaux stated that one way would be for the Airport to be its own general contractor, but if you figure in our time, the cost is just transferred to different accounts. McClelland Engineering could provide administrative work. W. Jones said they do have construction observers who can Stop Work if the work if it not acceptable, but they can not tell them how to do the work. The Board discussed having another Strategic Planning Meeting and would need more information on the proposed hangar. R. Boudreaux said it's not only the cost of the steel, but the contractors have more work than they can handle and they put premiums on the work. He said he had talked with John Knight of the State Aeronautics and he said if we turn down the grant and asked for it next year the grant money may not be available. Their grant money comes from a tax on fuel sales and fuel sales are down. C. Wallace said he would like it entered into the records that the contract we had hoped for, the bids were over an acceptable amount and we were not able to accept a bid and therefore we want to do more research before building a hangar. A motion was made by Bob Nicholson that staff be requested to gather more data about the proposed hangar construction before another Board Meeting. The motion was seconded by Frank Sperandeo. The motion carried. B. United States Postal Service Lease Agreement. R. Boudreaux explained that he had been contacted about one year ago by the Postal Service about locating at Drake Field. They are interested in leasing the north end of the terminal and would build out the space to look like the postal facility on Joyce Street, they would have 200 mailboxes and it would be manned weekdays and Saturday mornings. He further explained there is a hallway running behind the office area and that was not included in the square footage, and makes the rent around $ 10.00 per sq. ft., rather than the normal $ 11 .00 per sq. ft. B. Nickle expressed concerns about the airport paying the terminal's utilities and utilities will go up, also if something breaks down, who fixes it. O. Loewer stated he didn't believe we should subsidize the postal service, that they should pay the going rate. R. Boudreaux said the City Attorney has reviewed the lease. C. Wallace stated the Lease Data Page is for standard airport leases and this lease is not a standard lease, it's the governments' lease. An additional meeting was discussed and was decided that Bob Nickle, as he is in real estate, would review the lease and report back to the Board. A motion was made by Otto Loewer that the Board would approve the contract contingent on Bob Nickle's review and approval of the contract. The motion was seconded by Dave Hollman. • B. Nickle suggested all Board members to read the contract. 3 • The motion carried. ITEM #6: Other Business. A. Items from the Public. J. Hammond spoke of the upcoming Air Show on June 19th and 20hh . There will be wing-walkers and acrobatic acts, flying upside down cutting a ribbon, the Mig 17 will be back, a jet truck, an L-29, a Yak 52, the Trojan Phylers will be here, as well as the US Army Jump Team. We have a new sponsor, Dr. Pepper. F. Sperandeo said he wanted to compliment Judy, he had been in Boliver, Missouri and her name had come up as the nice lady that had helped them with their airshow. T. Collier said he had been in Russellville recently and they have two big open hangars and tie- downs. C. Wallace asked to be reminded that tie-downs and open hangars be placed on lists of items for the next Strategic Planning Meeting. R. Boudreaux said we do have tie downs and they are free, three are in use now. B. Items from the Airport Board. F. Sperandeo said he had a list on maintenance and he handed it out a page. The meeting adjourned at 3:41 p.m. Dave Bowman, Secretary Date • 4 • ' New, air tanker fleet to cost $26 million WASHINGTON — The Forest Service said Tuesday that it will cost at least $26 Million to replace large air tankers grounded this week because of safety concerns. Officials hope to offset the loss of 33 air tankers with heli- copters, single-engine tankers and military aircraft, said Mark Rey, the U.S. Department of Agriculture undersecretary . who directs forest policy. The decision to ground the tankers was "made with con- siderable sadness and regret," Rey said, but it was unavoid- able in the wake of an April 23 report by the National Trans- portation Safety Board that said the safety and airworthi- ness of the aging fleet could not be assured. The Forest Service will de- vise a new strategy to fight wildfires without use of the large tankers, Rey told the Senate Energy and Natural Re- sources Committee. "We will not be short-hand- ed. We will have to stretch to reconfigure, but we should be just fine," Rey said. • Drake Field Maintenance Requests Date of req. Date Completed May 2002 Landscaping of east side pilot's gate with bushes and trees as promised. Two rose bushes donated and planted. July 2002 Hanger door ( units A, B, C, D, ) hinges need to be re-tightened. ( Jim Bell) July 2002 Installation of mail boxes on hanger doors. July 2002 Resume magnetic sweeping of all taxiways on east side on a bi-weekly basis. s- I - ng Sept 2002 Light posts on east side ramp rusty, ( five) need to be painted . ]an 2004 Damaged fence on Ernie Lancaster Rd, east of FAA tower gate needs to be repaired. . (mower damage) 5- 1 -04 • Damaged barb wire fence bordering north creek. Needs to be repaired. (mower damage) Jan 2004 Fence lines from old DHL facility, north to Ernie Lancaster drive, to pilot's entrance gate needs to be policed for bottle and paper refuse on a regular basis. ( Fay. Jail mates?) 5 - 1 -04 Feb. 2004 Hangers A, B, C, D, electric service needs to be up dated and rewired. March 2004 When mowing grass, light posts, mail boxes, and pilots/Wings Av. entrance needs to be trimmed also. 5- 1 -04 March 2004 Hanger G-S has been leaking since new drain has been installed. Drywall is deteriorating on north wall and mold is accumulating at bottom from excessive moisture. New water gutter/down spouts to be installed on hangers E, F, and G. March 2004 A new 50fi hose needs to be installed on end of hanger "P ( 1 have a new "off' nozzle that I will donate) 5- 1 -04 HOU DOGS PILOT CHARACTER CONTRIBUTE TO ACCIDENTS? The topic of aviation safety covers more than the integrity of aircraft ; it also delves into the workings of , the pilot ' s brain . U . S . Air Force Capt . Roberta Russell has examined those workings and come .up with the psychological characteristics unique to aviators . To render a profile of the typical pilot , Russell compiled data from studies , made largely of male Air Force het pilots . She admits there is little data on female pilots but indications are they share many of their male counterparts ' traits . What are those traits? According to Russell , they include the following : 1 . Pilots are "controllers " . They are self-assured and have considerable need to achieve . They have little tolerance for imperfections and often want to change their environment , rather than change themselves to adapt . 2 . Being systematic , pilots feel at home with checklists . They manage things sequentially , which means they like to complete one task before starting another . 3 . Pilots are team players . 4 . A pilot is commonly the . first- born son in a family . He usually has close ties with his father , who often praises his son ' s achievements . 5 . Pilots are very intelligent but not Intellectual . They have more appreciation for the concrete and not the esoteric , and they are not often Introspective . 6 . Almost without exception , pilots are heterosexual . 7 . Pilots tend to prefer uncomplicated . and rather distant personal relationships . They see emotional involvement as an obstacle to their quest for control, A typical pilot finds temporary separation from family acceptable , even sometimes desirable . Capt . Russell says there are advantages and disadvantages to these characteristics . The . advantages include dependability , as ability to assimilate complex tasks , and a willingness to accept threatening situations . .Focusing more on the disadvantages , Russell says a main problem is overconfidence . ' Pilots have difficulty saying "I can ' t" . Along with the desire to achieve comes another problem , stress . The results may be physical , i . e . ulcers or heart disease . Being so methodical , pilots often rely too much on reflexes and learned behavior , and not enough on conscious thought . Finally , pilots are , according to the Air Force captain , " prime candidates for marital problems at midlife" . MINUTES OF THE SPECIAL CALLED AIRPORT BOARD MEETING • May 26, 2004 MEMBERS ATTENDING: Charles Wallace, Otto Loewer, Frank Sperandeo, Dave Bowman, Bob Nickle, David Hollman, Janice Stanesic STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Neal Bilbe-Fayetteville Open Channel, Frank Burggraf-Airport Board Historian, Dan Craft-Morning News, Sean Bolen and Robbie Furgeson-TV 5 News, Adam Wallworth-NW Ark. Times, Judy Hammond-Arkansas Air Museum ITEM #1 : Welcome. C. Wallace welcomed those attending the Special Called Meeting of the Fayetteville Airport Board. The agenda only has one item to be discussed. He stated that before they got into the agenda he would like to announce that our Airport Board Vice Chairman Otto Loewer received the Communicator of the Year Award at noon at the APAX Public Relations Awards. • ITEM #2: United States Postal Service Lease Aereement. C. Wallace related the Airport Board had talked at the Strategic Planning Meeting several months ago about expanding the airport presence and discussed that the Greenland Postal Service was seeking a new location. The item was on the Board's Agenda at the last meeting. Several Board members wanted additional information and asked Bob Nickle to review the contract and have Bob Nickle to report back to Charles Wallace. Bob said the contract needed further consideration C. Wallace said there are also other things to be considered—the people that are affected: People of Greenland People of Fayetteville Mayor of Fayetteville Mayor of Greenland C. Wallace speaking to the media, expressed appreciation of their interest even if the Board does not make a decision today. He asked the Board to think about: What value the Post Office would have to the airport? What value the Post Office would have to the county? What value the Post Office would have to the airport's revenues? • C. Wallace announced the Board would take a short recess to look at the terminal space involved. 1 J After the meeting was re-started, C. Wallace asked the Board to consider: • How the Post Office would fit into the community. O. Loewer said he had two space issues : Inside the terminal, and Outside space to accommodate the Post Office R. Boudreaux spoke of the parking spaces, saying the contract does not specify which eleven spaces and we have plenty of parking. D. Bowman asked the location for the drop box? R. Boudreaux said this is all very preliminary, although they have prepared several drawing proposals for the inside of the building. He said the entryway to the airport off the highway was discussed, and had told them we had plans for a four lane entry in our Five Year CIP, but it is not a requirement in their lease. B. Nickle wanted to know if we would control were the drop box would go? R. Boudreaux said it would be placed where it would be easily accessed by the driver. At their current location for the driver to use it, he has to cross into the oncoming traffic lane. He also related that anyone that receives their mail at their home in Greenland is on a Fayetteville mail route. The Greenland Post Office is used just for postal boxes or for mailing parcels. O. Loewer expressed concerns about liability. Saying with the estimated 200 arrivals per • day to the Post Office, traffic would increase in the highway turn lanes and would we be taking on any liability for people turning into the airport, or people at the airport? He also wondered about any security requirements around a federal office and wanted to make sure if any security issues came up later, the tenant would be responsible for them. R. Boudreaux stated the City Attorney had reviewed the contract and found it okay. Their lease has a whole section on security. B. Nickle reminded the Board that after the Oklahoma City bombing the local federal building removed all parking spaces along the street in front of their building on Mountain Street. C. Wallace asked the Board to think what we can do for the community and to look at what this would do for the airport. O. Loewer said it links to Transportation at some point in time and would encourage other businesses, or related businesses, to locate at the airport. Air transportation might eventually be linked to this Post Office. R. Boudreaux said the Postal Distribution Center for Northwest Arkansas is nearby to the east of us and currently all the postmarks read "NORTHWEST AR P&DF 72701 ". C. Wallace asked what would be any advantages? Saying he had heard at the last meeting that it would increase activity at the airport. D. Bowman said in the long term it would bring people to the Post Office, which would overflow to the restaurant and they would see airplanes and would be more aware of activities at the airport. F. Sperandeo suggested a gated door from the Post Office to the restaurant that would be open during the Post Office hours. If you dropped off a letter you wouldn't have to go outside, possibly in the rain, to get back to the . restaurant and possibly we could get an ATM. He suggested using the entry drive by the fuel farm and then their customers could park north of the terminal and exit the regular exit, and have the drop box north of the terminal, too. 2 w R. Boudreaux said he had tried to get an ATM, but it depends on the level of traffic. O. Loewer • said if the Post Office was already here, he could see that a door would encourage a level of community. C. Wallace stated he wasn't hearing anything negative or detrimental about the Post Office locating at the airport. B. Nickle stated he thought the airport's liability needed to be considered and with more traffic, the parking lot will need more maintenance, it will have to be re-surfaced eventually, more building maintenance, more maintenance to restrooms. F. Sperandeo asked about snow removal, would the maintenance guys who are already busy have time to do the extra work? R. Boudreaux said we already do snow removal. The Board discussed the length of the lease. The prime time would be ten years with a rate increase after the first five years, then with every option. If they outgrew the facility and wanted to leave before the ten years were over they would be obligated for the rent for ten years, and it was answered yes. J. Stanesic asked what if the airport wanted the space back for airport expansion before the thirty years is over? O. Loewer said that we need to make sure that whatever we would want to do outside the building, or if we wanted to expand to the north, if wouldn't be impacted by the Post Office being in the terminal. C. Wallace asked B. Nickle to walk them through the important part of the lease. B. Nickle said beside the length of the lease, the fust ten years are okay, but the last twenty years with it • being a full service lease, we are paying for all maintenance and all utilities with the space. If you were renting a space downtown for full service, you could expect the expense would be $2.50 to $3 .50 per sq. ft. per year. We are paying these same expenses already, but with additional workers and customers, utilities and maintenance will be more. When you subtract $3.00 from the the$ 10.00, then that is not the same as the $ 19,000 annual bottom line. O. Loewer said he would be more comfortable if they could break out the space rental from the service space, have the area separately metered, put in a separate air conditioning. We don't know the energy picture twenty years from now. B. Nickle the utilities are typically passed on to the tenant when you see multiple tenants. O. Loewer stated when you have different types of tenants, they each have different expectations of heat or air and of janitorial service. The Postal Service may have different standards for janitorial needs than what we are providing in the building now, mopping everyday instead of every three days. C. Wallace asked if it was possible to get more scientific for better projections. F. Sperandeo asked if you couldn't build in a cost factor for janitorial service. C. Wallace said he saw two things that needed more time: Relationship factor, our Mayor wants to deal with the relationship with Greenland, we're not trying to steal Greenland' s Post Office Homework--the financial impact to us • O. Loewer said he had just one other factor, he didn't believe in subsidzing the Post Office. Our rent needs to be comparable to other rental in the same place, somewhere along the line someone else may come along and may complain they were treated differently. He asked if we could find the going rental rate for other Post Offices in northwest Arkansas. B. Nickle said it 3 would be different for south Fayetteville than on Joyce Street, also in free-standing Post Offices . they pay their own janitorial. R. Boudreaux explained the person he had been dealing with at the Postal Service Real Estate Office in Dallas is retiring day-after-tomorrow, so he woould be working with someone different. B. Nickle said if we could just break the items out in the rent and increase as needed. O. Loewer said we need to understand what we as a Board are doing, we want to minimize the tax cost to our citizens. We, as a Board, want the subsidy by the City to be zero. The Board is trying to be accountable and good stewards of the property owned by us all. C. Wallace stated he was ready to hear a motion. A motion was made by Bob Nickle to table this lease because they did not have enough information to move forward. The motion was seconded by Frank Sperandeo. The motion carried. C. Wallace asked that a list of the items be prepared from the tape. J. Stanesic asked if armed guards would ever be required (for the Post Office), then we need to make sure we would not be required to furnish them. O. Loewer asked how it would affect the airport businesses if the Post Office sometime required cars couldn't be parked close to the Post Office and would have to block off a number of parking spaces? Again, liability was stressed by B. Nickle and asked to have that question put before the City Attorney. The Board reviewed the items previously discussed: liability to airport, janitorial, maintenance, security, parking, break out separate costs in the lease, and installing a separate heat and air system with a separate meter. B. Nickle said he didn't have a problem with paying for an air conditioner (and heat) to get them off our HVAC system. C. Wallace reiterated the item had been tabled until more information is obtained about the items on the list, the relationship between our Mayor and the Mayor of Greenland is determined and they talk to their constituents, and public relations need to be taken care of before this is a done deal. Meeting adjourned at 3:50 p.m. • Dave Bowman, Secretary Date 4 FAYETTEVILLE AIRPORT ADMINISTRATION OFFICE .THE CITY OF FAYETTEVILLE, ARKANSAS Z June 9, 2004 MONTHLY REPORT Director, Aviation and Economic Development Fayetteville, Arkansas May 2004 AVIATION: APAC has resumed construction on the USDA Forest Service project to construct the Taxiway "A" Extension and USDA Forest Service Apron Area Project. Forest Service has scheduled a pre-bid meeting for June 10 at the same time as the Airport Board meeting. They still plan to award a design build contract for construction of their mixing plant, office building, warehouse and parking lot on June 24, 2004. MICE Plans will be complete and the project documents out for bids by mid June so that the bid opening can be scheduled for the end of June. We should be able to award the construction contract for the additional extension of Taxiway "A" and the construction of Taxiway "E" to connect Taxiway "A" to the runway by the July 20, 2004 City Council Meeting. • Good progress continues on the new U of A hangar. Door rails are set and awaiting concrete, the office complex is taking shape, and all reports are that the building will be complete by the end of July. We continue to work with Judy on Airfest 2004. It will be a great show for the citizens. The tentative lineup is attached to this report. We completed the self serve system and through the end of May sold 16,000 gallons of AVGAS through the self serve tank. We sold more through the self serve than we sold when only selling through the truck. Sales after the promotion have continued to be strong through the self serve system. We are still working out some of the kinks in the system. We are still trying to find a3/4 inch aviation certified fuel hose for the 100LL dispenser. With 50 feet of hose, it is too heavy for the reel to work easily. We opened bids for T Hangar "H" construction on May 6, 2004. Bids to construct T-Hangar "H" were so high we were not allowed to negotiate. The bid tab is attached to this report. Indications are that the bidders were afraid to bid and not put a premium on the bid for the rapidly increasing price of steel. High steel and high fuel prices caused the prices to be even higher than the engineer expected. We are considering re-biding the project with some changes. We will award within 30 days of the bid so that the bidders will not need to be concerned about the uncertainty of the price of • steel over a long period. We will shoot for the July 20 Council meeting so bids will be opened the end of June. 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING FAYETTEVILLE, AR 72701 PHONE 501 .718-7640 Ext. 5 • FAX 501 -718-7646 • Monthly Report Aviation and Economic Development April 2004 Page Two On the 8a' of May Doc and Rick McKinney hosted a get together for the tenants. It was well attended and fun was had by all. We borrowed the Arvest Bank cooker and found it in such disrepair that with Leon's help we returned it fixed for use another day. Habitat for Humanity is considering a Habitat Fly-In in conjunction with our airport. The idea is something like "don your tool belt, fly to FYV and work for your lunch at a new habitat home." They are planning the first fly-in for next Spring. I offered the commencement speech for graduation of Webster University MBA and MA students. I welcomed the crowd to the Barbara Mashburn Scholarship Foundation Concert at the Walton Art Center. I met with John Marinoni, contractor on the original drainage project to repair problems with T Hangar buildings "F" and "G" to see if he could recommend a fix for the east side of T Hangar "G". He agreed to look at the problem to see if there was a way to correct the problem. • Economic Development: We will interview candidates for the Executive Director position for the FEDC in early June. We have selected five candidates for videoconferencing interviews. The goal is to have a director in place by the end of the summer. We continue to spend a lot of time in fund raising for the new organization. It is vitally important that the community take advantage of the current environment and a new organization dedicated to ED in Fayetteville is the right answer. We will continue to support the effort and will work closely with the new director, but will have a lot more time to spend on the airport economic development project to grow a viable airport that contributes to the economic well being of the community. We consummated a deal with Hannover Development for a piece of property in the Industrial Park. We hope to present it to the City Council in July. Re Submitted, ay oudreaux, D/tor • • QUESTIONS RAISED BY AIRPORT BOARD: Special Meeting May 26, 2004 1 . Q: Have we considered the. . . People of Greenland, the people of Fayetteville, the Mayor of Fayetteville, and the Mayor of Greenland? by Charles Wallace A: The USPS lost the lease on the current post office building in Greenland and contacted the Airport for a potential postal service center to be located in the airport Terminal. The USPS considered potential sites in Greenland as well. The USPS has asked for public comment for people to voice concerns to them in support or not of the potential sites. The airport has not had any comment from any quarter. Comments would be voiced to the USPS. We have talked with the Mayor of Fayetteville and the Mayor of Greenland to make sure that they know that the selection of a new post office site will be done by the USPS after considering all comments of all the public and the site that most meets their needs and the needs of the.people they serve. 2. Q: What value would the post office be to the airport, to the County and to airport revenues? by Charles Wallace A: Over the 30 year period, the rent paid by the USPS would amount to nearly $ 1 million in revenue to the airport. The Post Office would create traffic to the • airport. The restaurant would definitely benefit and the potential to house other businesses in the building is enhanced due to the increased traffic. I don't know what value there would be to the County. 3 . Q: How will the Post Office fit into the community? by Charles Wallace A: It would not detract but it would create activity around the facility. I foresee increased traffic as people from the south side of Fayetteville use this facility instead of the downtown facility. 4. Q: Are there suitable parking spaces? by Otto Loewer A: Yes. I have reviewed their plans for the parking. They have only one employee. Two handicapped spaces will be in front of the entrance at the oblique near the ramp. Most of the customer parking will be north of the building which is very near their entrance and allows for easy in and out. 5. Q: Can we control the location of the drop box? by Bob Nickle A: Yes. I have discussed with them the location. It will be on the island West directly across from their entrance on the driver side of the car. • 6. Q: Is there any additional liability associated with the PO? by Otto Loewer r • A: No. The USPS is self insured through the Federal Government. 7. Q: Would the airport be required to increase security for the PO? by Otto Loewer A: No. The USPS will install a security wall and be able to fully secure their space. . They will be self contained and will not rely on the airport for security. 8. Q: Would the airport be required to pay for (possible) increased security for the PO? by Otto Loewer A: No. They do not have guards now nor do they expect to have guards in the future. The FAA Facilities Maintenance office increased security to their building that they lease from the airport. They requested our permission and after approval of the improvements they paid to have the improvements made. We would not be required to pay for security improvements or any other improvements made to their space. 9. Q: What would be the advantages of PO to the Airport? by Charles Wallace A: Activity, revenue, talk, interest in the building, and keeping the place alive. • 10. Q: Can there be a gated door between the facilities? by Frank Sperandeo A: According to the USPS Regional Director, he would not want the connecting door as a security issue. 11 . Q: Are we willing to accept additional maintenance for the building and the parking lot and additional costs in utilities? by Bob Nickle A: Yes. We currently mow the grass and maintain the parking lot. The parking lot must be weeded because of the light traffic. With more traffic we might have less maintenance. We will maintain the public space, not the office as far as cleaning. I spoke with Shane Lanning of Green Anderson. He said that the increase in total building utilities might be 2.5% but no more. The building is over designed for its current purpose. Even the additional visitors will only impact minimally especially with the double doors. 12. Q: Will there be additional stress on the maintenance staff for snow removal? by Frank Sperandeo A: No. We remove the snow now and will continue to provide snow removal. 13 . Q: Would we be able to expand the building to the North? by Janice Stanesic • • Questions raised by Airport Board: Special Meeting May 27, 2004 Page Two A: Yes. Their only concern would be to be able to get to the back side of the building to unload the trucks. 14. Q: Question of breaking out the rental: rent for space, and rental fee for utilities? by Otto Loewer A: They do not have a lease that provides for separate fees for utilities. They have total building leases and space leases. 15. Q: Put the questions of liability to the City Attorney again. By Bob Nickle A: I spoke again with Kit Williams and there is no additional liability with the USPS in the building unless you consider the increase as it pertains to the increase in traffic. More people, more liability. I'm not sure but that it is a good thing to have more people. 16. Q: Question of installing a separate HVAC system and separate utilities for the PO. by Bob Nickle • A: Shane Lanning of Green Anderson did not think it would save or be more efficient than the system currently installed. 17. Q: What if parking lot restrictions are implemented by the PO, will we be required to enforce them? by Otto Loewer A: USPS officials do not foresee parking restrictions. Their comment was that the post office is not like the court house. The post office is a service agency that acts more like a retail establishment. The customer is the most important ingredient to the overall success of the organization. In any case, we are not in the enforcement business landside and would not be in the enforcement business with the USPS. 18. Q: DO we have to redo the entrance to the parking lot right away? A: No. They mentioned that they were concerned about the entrance during initial conversations. We offered that new entrance was in the capital program but that the board had not decided to do the construction. It is not part of the agreement with the USPS and is not a requirement should the Terminal be the selected location. • . AIR SHOW SCHEDULE AIRFEST 2004 June 19-20, 2004 Fly-by B-2 Bomber Saturday only 1 :00 Flag Jump Black Dagger Jump Team UH-1 Trojan Phlyers circle National Anthem 1 : 10 Greg Shelton Aerobatics AT-6 1 :20 Mike Rinker Aerobatics Sukoi 1 :30 Greg Koontz Aerobatics Super Decathelon 1 :40 Earthquake II First Run Jet Truck 1 :50 Doug Jackson Aerobatics AT-6 (Zero) 2 :00 Greg Shelton Wing Walking Stearman • 2 : 15 Team Red Aerial Demonstration Team YAK-52 and CJ-6 2:30 Bob Ford Paradise Aerobatics T-6 2:40 Greg Koontz Comedy Aerobatics J-3 Cub 2:50 Black Dagger Jump Team Demonstration UH- 1 3 :00 Earthquake II Second run Jet Truck 3 : 15 Trojan Phlyers Team Demonstration 2/T-28 3 :30 Randy Ball Aerial Demonstration Mig- 17 3 :45 Heritage flight Sunday only F- 15 and P-51 3 :45/4:00 Missing Man Formation Doug Jackson Jim Goff Bob Ford Phillip Kirk Alden Miller • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR 0600 School Ave., Sults F Fayetteville, AR 72701 AVIATION AND ECONOMIC DEVELOPMENT 479.710.7642 RAY M. BOUDREAUX, DIRECTOR TO: Fayetteville Municipal Airport Board THRU : Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: June 10, 2004 SUBJECT: FBO Report Tower Operations Graph: This graph compares monthly totals of aircraft operations since January 2000. May figures indicate a continued increase trend . It is clear that the introductory-priced fuel at the new Self serve facility enticed a large number of itinerant aircraft to stop at FYV. OPERATIONS - CUMULATIVE 2000 - 2004 ° 50 a g0 2000 82001 30 a 2002 0 2003 20 1112004 • 10 Ill ' 1 F16 I O AI 1111rad �Pa yyo gra Pyo �P S31 s3y P"P 41 FBO Fuel Sales: As can be seen in the graph below, fuel sales volume shows minor growth in comparison to 2003 sales. The May sales level is approximately 94% of the FBO's monthly average volume of 31 , 129 gallons for the past 12 months. FUEL 5ALE5 - CUMULATIVE 2001 - 2004 ° 400 ° 350 ■ 2001 300 02002 v 0 2003 2.50 ® 2004 '0 200 I 150 in r41111 100 Will] 1[11 mill 0 4 Ulu o4 '' • • Local Area Data : Retail fuel prices in the local area increased at several airports in May, including FYV. Following is a comparison of regional retail fuel prices as of 6/10/04: Regional Jet Center (XNA) Avgas: 3.22 Jet-A: 2.94 Pinnacle Air (ASG) 2.58 (Ss-2.37) 2.62 Beaver Lake (Rogers) 3.02 2.67 Hughes Aviation (Bentonville) 3.20 (Ss-2.78) 2.78 Siloam Springs (City-run) 2. 35 (ss-1 .99) 2.25 Fayetteville Municipal 3.09 (ss-2.46) 2.77 Regional Jet Center provides discounts on Jet-A; . 10 @ 500 gals+, .20 @ 1 ,000 gals + Fayetteville offers discounts for cash sale and quantity discounts on jet fuel. The Graph below illustrates wholesale fuel price fluctuation since mid-2003, with benchmark beginning at 1 /1 /2003. The wholesale price for aircraft fuel reached record high prices in May. Wholesale Fuel Price Trend sox Sox '% Che Jess c 40% —7. chg 10Ou a r 30% u m 20% 107 u d -10% - -20% N (p@ mG. NNUI � VN hm gNNN N ,j (fl NG"pV N (I1J � N Aim 41 � JN (�1V � N NNN (p � N (p Week 200312004 FYV Fuel Ops Facts: Average monthly fuel sales: 31 , 129 gals May 2004 fuel sales: 19,455 Jet . 65.9% 10.055 Avgas - 34. 1 % 29,510 Total Jet-A sold to FYV-based customers in May: 139173 - 67.7% Jet-A sold to transient aircraft customers in May: 61282 - 32.3% Avgas sold to FYV- based customers in May: 395 - 3.9% Avgas sold to transient aircraft customers in May: 1 ,534 - 15.2% Avgas sold to Self-Serve customers in May: 81125 - 80.8% • 87 MoGas sold to Self-Serve customers in May: 190 City of Fayetteville Arkansas • Airport - Drake Field Operating Statement - Airport Board For the Month Ending: 05/31 /04 2003 2004 2004 2004 2004 Actual Budget Budgeted YTD Actual YTD Prjctd Yr End Operating Revenue Rents & Leases 319,135 3319609 138,170 166,255 382,357 Aviation Fuel 7131711 6629000 275,833 258,599 770,589 FEMA Reimburse 18,432 Miscellaneous 28,411 25,000 10,417 61971 19,098 Total Operating Revenue: 1 ,061 ,257 1 ,018,609 4241420 4311824 121909476 Operating Expenses Personnel 360,960 379,271 1589030 153,616 381 ,736 Materials & Supplies 349777 34,750 141479 41983 29,750 Aviation Fuel Purchases 464,840 522,000 217,500 223,873 603,834 Services & Charges 239,191 264,179 110,075 92,610 2372264 Cost Allocation to General Fund 144,612 1519800 631250 63,250 151 ,800 Maintenance 559833 635710 26,546 18,642 62,941 Operating Capital / Equipment - 7,500 37125 - - ATC Tower Costs - 40,000 16,667 - - Total Operating Expense 19300,213 11463,210 609,671 5563975 114675325 • Change In Fund Balance (238,956) (444,601 ) (185,250) (125,151 ) (2769849) from Operations • Page 2 • City of Fayetteville Arkansas Airport - Drake Field Airport Fund Statement - Airport Board For the Month Ending: 05/31 /04 Beginning Funds Available - 01 /01 /2003 1 ,440,346 Airport Fund Revenue YTD Projected YE Interest on Investments 21 ,120 693000 Non-Op Miscellaneous 11520 23248 Unrealized Gain/Loss on Inv Total Fund Revenue 22,639 71 ,248 Airport Fund Expense 2004 Capital Project Expense / Grant Matching YTD Projected AIP #30 - Taxiway A Extension Design 2,681 39155 AIP #31 - Taxiway A Ext. Construction - - Executive Hangar 2@ 60x60 27800 23800 East-side Self-serve 100LL 171464 17,464 Self-serve MoGas Tank 131207 189350 8 Bay T-Hangar 51200 2763500 UA Hangar - - AIP #32 - Taxiway A Ext. Phase II - - • Executive Hangar 2@ 60x60 100 x 200 Corporate Hangar Roof Maintenance - 10,000 New Airport Entrance - 100,000 Repair Parking Lot 6,920 61920 Debt Service Total of Project Expense - Airport Fund 485272 435,190 Income Less Expense (25,633) (363,942) Change In Fund Balance from Operations (125,151 ) (276,849) Ending Funds Available 5/31 /2004 192893562 Est. 799,555 SUMMARY OF GRANTS Airport Matching Grants DOT/FAA USDA/Forest Dept Aero Local / City AIP #30 - Taxiway A Extension Design 105,057 8400 51836 AIP #31 - Taxiway A Ext. Construction 11232,723 802,698 139,969 East-side Self-serve 100LL 17,464 8 Bay T-Hangar 100,000 UA Hangar 591 ,270 • AIP #32 - Taxiway A Ext. Phase II 7779603 409926 TOTAL ALL GRANTS : $3,897,946 221153383 887,098 304,195 591 ,270 CITY OF FAYETTEVILLE • FAYETTEVILLE MUNICIPAL AIRPORT CALCULATION OF PROMOTIONAL EXPENSE 100LL SELF SERVE PROMOTION 11 -Mar-04 Per Gallon AVGas: 1 .5451 Fuel 4309 Gallons Sold This Period 0. 1940 Fed excise tax X 1 .9358 Per Gallon Cost 0.0020 AR Petro Envr Assurance = 8341 .50159 Cost of Fuel 1 .7411 Fuel Delivered 4309 Gallons Sold This Period 0. 1429 State/local tax X 1 .9500 Per Gallon Price 8402.55 Revenue from Sales 1 .8840 SubTotal 0.0518 Credit Card surcharge 61 .0484119 Gain/(Loss) this Load 1 .9358 100 LL Cost per Gallon 12-Apr-04 Per Gallon AVGas: 1 . 5511 Fuel 5204 Gallons Sold This Period 0. 1940 Fed excise tax X 1 .9426 Per Gallon Cost 0.0020 AR Petro Envr Assurance = 10109.1218 Cost of Fuel • 1 .7471 Fuel Delivered - 5204 Gallons Sold This Period 0. 1435 State/local tax X 1 .9500 Per Gallon Price = 10147.8 Revenue from Sales 1 .8906 SubTotal 0.0520 Credit Card surcharge 38.6781543 Gain/(Loss) this Load 1 .9426 100 LL Cost per Gallon 7-May-04 Per Gallon AVGas: 1 .7586 Fuel 6635 Gallons Sold This Period 0. 1940 Fed excise tax X 2.1755 Per Gallon Cost 0.0020 AR Petro Envr Assurance = 14434.4122 Cost of Fuel 1 .9546 Fuel Delivered 6635 Gallons Sold This Period 0. 1627 State/local tax X 1 .9500 Per Gallon Price 12938.25 Revenue from Sales 2. 1173 SubTotal 0.0582 Credit Card surcharge (1 ,496.16) Gain/(Loss) this Load 2. 1755 100 LL Cost per Gallon • (1 ,396.44) Net Revenue/(Loss) • LU W 0Co Q 0 Z N C C C C O WZ a 1O � rn QJ UT Q W W H co VZ6 m c o LCD n m W D LU Z V> � � Q Z W ceSOy Q CD r Z > � o o c 0 c W a v Q Cl o c 0 U W rn us ur m Q 2 aN ~ W Q > ia .. 00 N m am o Maj CN W O O O O O a O O Cl O Co D w O m O O M P co CD cm co r m O N T N O a 00 N C) O; � . co a v d m W � m 64 V> w � � co cc LL ~ O N M W a cc U W C F- Q y O O O :O L U m w O O C a LL co O C T ca OLU L ya V C rn G 0 d L L r a+ y m Z ti O 00 U O • ' m C U T N V f6 D -O p w O S 9 C O L v U _ O QL m' N FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR 4500 School Ave., Suite F • Fayetteville, AR 72701 479.718.7842 AVIATION AND ECONOMIC DEVELOPMENT RAY M. BOUDREAUX, DIRECTOR TO: Airport Board THRU: Ray M. Boudreaux, Dire FROM: James L. Nicholson, Financial Coo inator / DBE Liaison DATE: June 10, 2004 SUBJECT: Disadvantaged Business Enterprise (DBE) Program Goal Update br FY2004 Recommendation: Review & Approve a motion to accept and forward to the City Council, the Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2004. Background: On October 14, 2000, the Fayetteville City Council approved the Fayetteville Municipal Airport's revised Disadvantaged Business Enterprise Program. The Airport's DBE Program is federally mandated under 49 CFR Part 26 for all Department of Transportation (DOT/FAA) grant recipients which anticipate receiving more than $250,000 in federal funds in the fiscal year. Drake Field anticipates receiving approximately $818,530, (Taxiway "A" Extension Phase It -USDA Forestry Service frrebase project) from the DOT/FAA in FY 2004. The DBE Program assures that Minority & Women-owned businesses, and other economically disadvantaged small businesses have an equal opportunity, or "level playing field," in competing for Airport procurement contracts. • 49 CFR Part 26 requires that our DBE Program Goal be updated annually. The Updated Goal describes the overall DBE participation percentage and value of procurement contracts targeted for award to DBE contractors in the fiscal year. The regulation provides the methodology to be used to set contract DBE participation goals. Discussion: The purpose of this item is a new resolution amending Fayetteville City Council Resolution No. 150-01 -00. Resolution No. 150-01 approves the Revised Disadvantaged Business Enterprise Program to be implemented for all DOT/FAA grant assisted contracts entered into by the City of Fayetteville Municipal Airport. The new resolution will accept and approve the airport's updated DBE participation goal for FY 2004. Budget Considerations: No budget effect. /jn Attachment: FY 2004 Goal Update & Methodology • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2004 Update Airport Sponsor: City of Fayetteville Name of Preparer: James Nicholson, Financial Coordinator Fayetteville Municipal AirporUDrake Field 4500 S School Ave., Suite F, Fayetteville, AR 72701 Goal Period: Project Based — AIP Grant No. 3-05-0020-0032-2004 Overall DBE Goal: For review 1 .18% Introduction to 2004 DBE Goal update. The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2004 and extending through the completion of the Airport Improvement Project (AIP) noted above, is provided to describe the Airport Projects which are funded in part with Department of Transportation (DOT) / Federal Aviation Administration (FAA) funds, and to determine by the federally prescribed methodology the portion or percentage of those funds targeted for contract award to Disadvantaged Business Enterprises (DBE's) in accordance with Federal Regulations 49 CFR Part 26. The Goal Update is a prerequisite for AIP grant funding for airports which anticipate receiving more than $250,000 in federal funding from the DOT / FAA in the 2004 fiscal year. The 2004 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2004 fiscal year, from that originally described in the airport's previously published • DBE Program Plan and successive annual goal updates. The FY 2004 Goal Update is effective concurrent with the solicitation of bids through completion of the grant funded project. Public Participation and Consultation in the DBE Goal Update process is a requirement under federal regulations at §26.45(g). The updated Goal and Methodology is published for 30 days prior to submittal to the FAA for approval. Comments on the Goal Update are accepted for 45 days after the date of public notification of its availability for public review. A number of interested private and public entities were selected to review and comment on the Goal Update, (see attachment #1 - list of consulting agencies). Public comments on the updated goal and methodology are incorporated with the submission to the FAA. Public comments on the proposed FY 2004 Goal were received as of**l**/04, (see attachment #2 — comments) Comments on the FY 2004 DBE Goal Update may be submitted to the Fayetteville Municipal Airport's DBE Liaison Officer by phone, writing, fax, or e-mail to the following: James Nicholson, DBE Liaison Officer Fayetteville Municipal Airport / Drake Field 4500 South School Ave., Suite F Fayetteville, AR 72701 479-718-7643 479-718-7646 fax inicholson(a,ci.fayetteville.ar.us •