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Home My WebLink About2004-09-09 - Agendas - Final • AIRPORT BOARD AGENDA September 9, 2004 1 :30 p.m. Airport Conference Room 4500 S. School Avenue 1 . Welcome. 2. Agenda Review. A. Review by the Chairman. B. Comments from the Public. 3. Minutes of the August 12, 2004 meeting. 4. Receiving of Reports. A. Charles Wallace, Chairman. B. Ray Boudreaux, Director. C. James Nicholson, Financial Coordinator. D. Louise Powers, T-Hangar Report. . E. Construction Report. F. Maintenance Report. 5. Old Business. A. Request from "Friends of the Agnes Stockburger Library", Winslow, Arkansas. This item was tabled at the August meeting. The "Friends" asked that their request be removed. 6. New Business. A. Approval of the Airport Budget for 2005. Action Required: A motion to approve the Budget. B. Approval of a Change Order for lighting fixtures for T-Hangar "H". Action Required: A motion to approve a Change Order. C. Discussion of the Airport Entrance Project. Action Required: A motion to proceed with the project. 7. Other Business. A. Items from the Public. B. Items from the Airport Board. 8. Adjourn. r • MINUTES OF THE AIRPORT BOARD MEETING August 12, 2004 MEMBERS PRESENT: Charles Wallace, Dave Bowman, Bob Nickle, David Hollman, Frank Sperandeo MEMBERS ABSENT: Janice Stanesic STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Judy Hammond-Ark. Air Museum, Terry Collier-Tenant, Rick McKinney-Tenant, Frank Burggraf-Former Airport Board Member and Airport Historian, Chris Cheedle and Scott Brock-Fayetteville Government Channel, Wayne Jones- McClelland Consulting Engineers ITEM #1 : Welcome. Chairman Wallace welcomed those attending the meeting. ITEM #2 : Agenda Review. C. Wallace explained they wanted the Board Meetings to be an environment where people can express themselves and ask questions. Copies of the agenda will be available in the Airport Administration Office one week ahead of the . meeting. At the first of every meeting C. Wallace said he would review the items on the agenda and receive comments on the agenda items, then when the agenda items come before the Board for action they will then vote. A. Review by the Chair. C. Wallace reviewed the items listed on the agenda. B. Comments from the public. Asked for comments, and hearing none moved to the next item on the agenda. ITEM #3 : Minutes of the July 8, 2004 Meetine. A motion to approve the minutes was made by Otto Loewer and seconded by Dave Bowman. The motion carried. ITEM #4: Receiving of Reports. A. Charles Wallace, Chairman. The Board held a Strategic Planning Meeting on August 4h and discussed the need for public relations, talking to our representatives, the people that make the budgets, to give some substance to the economic value of the airport, to the economy of Northwest Arkansas. We talked about how our costs are allocated, fuel price formula, ideas for a newsletter which would be a publication from the Airport Board about the Board members and others around the airport. The newsletter would not be from the airport staff, although we will offer an area for comments from the Airport Director. We could develop an e-mail list and send it electronically and with the bills. • B. Ray Boudreaux, Director. They are pouring the concrete for the Forest Service taxiway. It is 11 inches thick. We have received the grant and can proceed with Taxiway 1 f . A extension and the connecting Taxiway D. We will apply to the State Aeronautics for their assistance. The contract was awarded to construct T-Hangar H and have issued the Notice to Proceed. They are getting ready for the foundation. The Fourth of July event went well, and we may be asked to host the fireworks again, and if we do we will ask for volunteers, maybe the Board would like to volunteer. Doc helped with the east side security patrol. The airport's annual FAA inspection was conducted in July to recertify our FAA Part 139 Specifications. Next year we will have to decide if we want to continue with the Part 139. The south fence is under repair, but it has been so wet work has been delayed. The permeable concrete bid was awarded and work will start soon. The US Postal Service lease has been signed and they will begin work on the building in September. Said he had attended an Economic Development Conference in Hot Springs. F. Sperandeo asked about the electric in the T-Hangars. R. Boudreaux said it would cost $9,600 to update the lighting for T-Hangar A and $ 12,000 each for hangars B, C, and D, using one metal halide fixture in each hangar. This work is not in the budget. The steel delivery for the new T-Hangar has been delayed, and hope to have if finished by end of January. We applied for a $50,000 grant from the State Aeronautics for assistance with the T-Hangar. C. James Nicholson, Financial Coordinator. He reviewed the charts from the agenda report. O. L.oewer determined from the report that on an average we have six operations per hour over a twelve hour period. The FAA's Benefit Cost Analysis formula for the tower will have us paying 59% of the tower cost, it was at 73%. R. Boudreaux said the FAA conducts the analysis every two years and we did submit additional information to . support possible further reduction in cost. We have not heard back from the FAA. Hot Springs gave up their tower. We need to consider do we really need a tower? The operations here are not counted between the hours of 10 pm and 6 am. Perhaps we can reduce the hours of operations to their busiest hours and reduce the cost of the tower. J. Nicholson stated the fuel sales are ahead of last year. The jet price is up some and the AVGas is going down. Referencing the Financial page, he called attention to the year end projections. We have removed the projected amount for the tower for 2004. The projected year end does include some increases. The fence project will cost $ 18,000 and we only received $ 15, 110 from FEMA. O. Loewer said depreciation is a real cost, and maintenance. Our reserve fund has allowed the tax payer of the City to not have to spend funds on maintaining the airport. Several Board members commented on newspaper articles talking about the City's audit and the Airport's situation. F. Sperandeo wanted to have a representative from the City Council attend the Airport Board meetings. C. Wallace said we could explore that idea, but the Council has about three nights a week where they attend meetings already. D. Louise Powers, T-Hangar Report. All T-hangar and storage units are rented. The FBO hangar had about five overnights and three regular monthly customers. E. Construction Report. W. Jones reported the contractor is working on the preliminary punch list. The Taxiway A project is moving along. The contractor is APAC Division from Georgia and has done work at the Atlanta airport and others. There will be some dust until the lights are in and some seeding is done. Total project was about 28% complete in July and will be about 60-70% complete by the end of August. • After the meeting today we can go over to the T-hangars and look at a metal halide light demonstration as compared to a regular 175 watt fixture. J. Nicholson said the down side 2 is the cost of the bulb, $30.00, but it will last 10 to 15 times longer. We won't have to change the bulbs as often and the consumption of power will be about the same. F. Maintenance Report. F. Sperandeo passed out his maintenance list. R. Boudreaux reviewed the items on the list and gave the status of each one, and explained he had covered other maintenance items in his report. The self-serve fueling facility was discussed. R. Boudreaux said they had not found a '/. " hose that is certified. We had lighting strikes at two gates. R. Boudreaux, answering F. Sperandeo, said Jim Bell is doing the maintenance on the doors to the hangars. F. Sperandeo complained that the light poles had not been painted and they had been on his list for three years. R. Boudreaux explained they were still on the Airport's maintenance list. ITEM #5: Old Business. None. ITEM #6: New Business. A. Request from "Friends of the Agnes Stockburger Library, Winslow, Arkansas. R. Boudreaux said they were requesting to have a car show in the parking lot on October 9a'. It is not a home ballgame weekend. This event and previous events and their charges were discussed. O. Loewer said the Airport needs to have a set policy with categories and a check list and all that could be determined at the Strategic Planning Meeting. C. Wallace said the request was tabled by Board consensus until the next meeting. B. Fuel pricing formula. Discussion followed of the current policy with suggestions to review it quarterly, even weekly. B. Nickle suggested looking at giving Ray more discretion instead of having a formula. C. Wallace stated he felt we should have a formula. O. Loewer said we have become a victim of our own planning, and he liked the idea of a formula, but it is creating problems. He suggested pegging the price on a weekly basis, but not at the time of the purchase and more frequent updates on the pricing. R. Boudreaux explained the Airport receives the prices changes from AVFuel twice a week. He said our JetA fuel price is higher because that is where we put more of our costs. It would be easy to change the price on a weekly basis. Normally we take one load a week. There was discussion of letting the Airport Director be able to adjust the price downwards. O. Loewer said if we could be competitive on the downside, why not also on the highside. C. Wallace said by Airport Board Consensus they adopted the fuel pricing principle, and would leave it to staff to adjust the price downwards. C. Information on the Year 2005 Budget. J. Nicholson referred to the new column, "Budget 2005", on the Financial Report, and stated the tentative budget had been compiled and it is being examined by the Budget Department. R. Boudreaux explained some of the budget process, the City holds training classes on preparing the budget, • Budget Department sends paperwork to the departments asking if we want to make any changes, we fill out forms, and the he would go before the Budget Department for Budget 3 . Discussion and eventually all of the City's Budget will go before the City Council for approval. We need to have everything ready by the middle of next month. J. Nicholson asked for the Board's e-mail addresses to forward additional information. C. Wallace wanted to know if the Board should make suggestions, or calls, to the Council to let them know the economic impact the airport has on Fayetteville and the community. ITEM #7: Other Business. A. Items from the Public. C. Wallace asked the following list be forwarded to him: Security for the eastside, people over the fence on July 4e , restrooms, and people using the self-serve fueling. F. Burggraf talked about the proposed newsletter, saying people could take ads in it, companies could have give-a-ways, articles associated with the airport, an airport calendar. B. Items from the Airport Board. C. Wallace said Janice had asked about a specific marketing program, something to get information out to corporations nationwide. C. Wallace asked that item be included in his list. Dates for the Strategic Planning Meeting were discussed, September 3`a and August 30`s or 3l " . The date would be decided later. R. Boudreaux explained we always send a notice to the press when we have the regular meetings and the Strategic Planning Meeting. Meeting adjourned at 3:45 p.m. Dave Bowman, Secretary Date 4 Ir FAYETTEVILLE AIRPORT ADMINISTRATION OFFICE AdIhL THE CITY OF FAYETTEVILLE, ARKANSAS qW September 7, 2004 MONTHLY REPORT Director, Aviation and Economic Development Fayetteville, Arkansas August 2004 AVIATION: The first phase of the USDA Forest Service project to construct the Taxiway "A" Extension and USDA Forest Service Apron Area Project is nearly complete. All the concrete is in and the crews are working on the joint sealing. The edge drain and taxiway lighting are all that remains to finish the project. Phase Il of the project, FAA AIP Grant #32 has begun with topsoil stripping. This phase of the project will require some runway closings as the taxiway "E" work will be adjacent to the runway. Some of the work will be completed between 10 pm and 6 am to limit the amount of time for the closing. The Forest Service portion has not yet been awarded. They still plan to complete most of the work before mid-year 2005. The USDA has held meetings with the prospective contractors. The U of A Flight Department plans to move into their new building, with Beneficial Occupancy on September 15, 2004. The contractor is working hard on the punch list. Construction of T-Hangar H has not yet begun, but the building has been ordered. Architectural Constructors, Inc will start moving to the lay down area near the waste oil dnun mid September. Plans have not changed to complete foundations and pavement before the fall rainy season. The fence on the South end has been repaired and inspected. Project completed. We temporarily installed a new light fixture in one of the new T Hangars to help determine the "right" configuration for the new T Hangar "H". We will ask the Airport Board to approve a new configuration of three 250 watt low bay fixtures for each bay. We have advertised for a new contractor to provide fuel for the Fixed Base Operation. The last contract was for three years and will end October 31 , 2004. The request for proposals will allow the airport to select the best and least expensive provider. Key items to be evaluated include pricing, support, advertising, training, and vehicles. While attending the Arkansas Economic Developers Conference last month, I had a conversation with Dr. John Shelnutt with the Institute for Economic Advancement at UALR. He offered to do an Economic Impact study for $3,000.00. Of course, you get what you pay for, so we talked to Dr. Jeff • Collins about the offer. He wants to do the study and will get it down to a price we can afford. I will hopefully have a report for the Board at the September meeting. 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701 PHONE 501 -718-7640 Ext. 5 • FAX 501 -718-7646 -r August Monthly Report September 7, 2004 Page Two I will attend the annual Arkansas Airport Operators Conference in Hot Springs September 12°i through 140' . The State Department of Aeronautics will have their meeting at the conference. We have two items on the agenda. Item 1 is to request the 5% match for Al? #32, the project to construct Taxiway E to connect with Taxiway A. The second item is to request our grant for the T- Hangar "H" project be amended for an additional $50,000.00. I met with a developer interested in building hangars for lease on the airport. We will continue to try and make a deal beneficial to the airport and to the developer. It would be good to start the mini corporate hangars on the east side next year. The month of August was the first month for the 2005 budget meetings. We had several meetings over the course of the month and will continue meeting through the month of October. The Council will approve the budget in November. • Economic Development: I attended the Arkansas Economic Developers Conference in Hot Springs. Bill Ramsey of the Chamber and Steve Rust, the new President and CEO of the Fayetteville Economic Development Council, also attended. A trip report is attached to this report for your information. We continued to solicit funds and support for the Railroad spur to the Fayetteville Industrial Park. We met with Gene Eagle of the Arkansas Development Finance Authority. They were impressed with our proposal and felt that financing would be easy. That, of course, remains to be seen. Bill Ramsey and I traveled to Little Rock to meet with the ADED staff to garner support for the Hannover House Development and the Railroad spur to the Fayetteville Industrial Park. Respectfully Submitted, Ray M. Bou reaux, ctor • l FAY ETTEV ILLE AIRPORT ADMINISTRATION OFFICE THE CITY OF FAYETTEVILLE, ARKANSAS TRIP REPORT ARKANSAS ECONOMIC DEVELOPERS' CONFERENCE Hot Springs, Arkansas August 16-18, 2004 The annual Arkansas Economic Developers' Conference was held in Hot Springs in August. As last year it was a valuable conference bringing all of the State ED professionals together to compare notes and talk deals. Highlights of the conference were presentations by Larry Walther, Director of ED for the State and Jim Pickens, former director of ADED now marketing director for the Amendment 2 campaign. The conference concluded with a presentation from Dennis Cunco, Senior Vice President, Toyota Motor Manufacturing North America. The opening presentation was Donna Smith of Loveland Colorado, "Fitness for Economic Developers." She preached moderation in everything. Moderation in what you eat and what you do. She exposed the theory that food is fuel for the body and what • you don't use, you store as fat. So exercise is the answer to overweight not diet programs. Must have both, moderation in intake and moderation in exercise. Bob Lamb talked about preparing for retirement along with Kim Pruitt who addressed Economic Development fringe benefits. Bridget Lee, Marketing Manager, Hong Kong Trade Development Council, made presentation about the opportunities available in China. China's economy grew by 9% last year. While the land mass of China is smaller than the USA, their population is 1 .3 Billion people compared to about one quarter of that the number, people in the USA. The average annual income is $ 1 ,800.00 with a higher average, $5,000.00 per year in the urban areas of the country. Hong Kong remains strong with 7 Million people conducting free trade with Mainland China. Mike Randle, Southern Business and Development, spoke about the Automotive Industry and the Southern Automotive Corridor. Key ingredient if a community would like a plant would be a buildable and certified site of 1200 to 1500 acres with rail and interstate access on the boundary of the site. Second most important ingredient is that the community must be ready to write a check for $250M to help the plant get up and going. The reward for the community is between 1000 and 2000 plant jobs with support jobs and economic impact multipliers in the community as high as 9.4 times. • 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701 PHONE 50 1 -718-7640 Ext. 5 • FAX 501 -718-7646 Trip Report • Arkansas Eco. Dev. Conference Page Two Mark Sweeney followed with "Being Prepared for Mega Projects". Mark is a consultant with McCallum Sweeney Consulting. He preached high on parts projects. "Parts in Parks." Assembly needs 1200 to 1500 developable acres but parts plants need much less land. The most important incentive for parts suppliers is the land. He called it a "high impact" incentive. With all of the plant potential for either assembly or parts, he spoke about minimizing the government process as a key factor. No more than ] 20- 150 days for permitting to start moving dirt. Must be committed to making it happen and the client must believe it or they will go elsewhere. Stephen McLaws and Andrew White represented the UP Railroad. We had the opportunity to speak with them at the break and they are very interested in our rail siding and the opportunity to place rail on the east side of the airport. They said that it costs $ 150.00 per foot to install rail not including bridges and culverts. Representatives from DENSO International and DENSO . Manufacturing Arkansas presented the story of the Toyota Parts Plant in Cross County. The consensus was: I . Know your prospect 2. Know your product 3 . Be patient 4. Address the personal/cultural dimension of the deal 5 . Really KNOW your prospect. Typically the initial questionnaire will be more than 60 pages—answer every question. Bill Thomas of the Cross County EDC presented his side of the story relating to the EKAS plant in Wynn. EKAS is a parts plant as well. He said: 1 . Develop interpersonal relationships 2. Cultivate Community support 3 . Listen to prospect 4. Answer questions promptly 5. Respond immediately 6. Design incentives to "take care" of those coming to community to work (ie. CC memberships, special schools for the kids, etc.) At the AED Awards Luncheon, Tommy Dewesse was awarded the Economic Development Volunteer of the year for the third congressional district. Jim Pickens talked about Amendment 2 and what it means to the State. It is vitally important that we pass the amendment. The amendment allows for up to 5% of the state's tax income to be bonded for incentive to a mega project. A $ 150M bond would be paid off in 20 years and would cost the taxpayers of the State $8M a year in debt service. The return is substantial and is only offered to companies investing $500M with 500 full • time jobs. He told the story of Toyota in Kentucky. The State invested $ 147M in 1985 . . Trip Report Arkansas Eco. Dev. Conference Page Three Toyota hired 7500 people and invested $600M. Ten years later 37,500 jobs have been attributed to the plant through suppliers and support jobs. The Kentucky economy has grown by $ 1 .5B. They believe that each year, the State receives a 37% return on their investment. Larry Walther, Director ADED updated the conference on the status of State programs. He reminded the group that performance based incentives help the community grow their job base and any infrastructure investment remains in the community. He encouraged communities to tap into the ADED marketing programs. The final presentation was by Toyota Motor Manufacturing North America Senior Vice President, Dennis Cuneo. "Most jobs in auto assembly industry require 9.4 jobs in the supply industry. Positives about the South: 1 . Limited number of unions 2. low cost of living 3 . good population growth 4. good work ethic 5. environmental permitting strategy However, the south is an extremely hostile litigation region. Need to change that environment. South needs to concentrate on technical skills for the workforce. The auto industry will grow $20M a year easy. His outlook for the next five years is generally optimistic. A great conference with good outcomes. I was able to get the UALR EDI to do an economic impact study for the airport for $3000.00. I hope to have this study completed in the very near future. Respectfully submitted, Ray M. Boudreaux Director Aviation and Economic Development • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR 1800 School Ave., Sults F Fayetteville, AR 72701 170.718.7612 AVIATION AND ECONOMIC DEVELOPMENT RAY Y. BOUDREAUX. DIRECTOR TO: Fayetteville Municipal Airport Board THRU: Ray M. Boudreaux, Director FROM: Jams Nicholson, Financial Coordinator DATE: September 9, 2004 SUBJECT: FBO Report Tower Operations Graph: This graph compares monthly totals of aircraft operations since January 2000. There were approximately 200 more operations in August than in August 2003, the cumulative count shows a 18% increase over 2003. OPERATIONS - CUMULATIVE 2000 - 2004 50 v c °0 40 2000 °o DD 2001 30 M 2002 02003 20 ® 2004 . 10 O FBO Fuel Sales: As can be seen in the graph below, fuel sales volume shows minor growth, approximately 1 . 3%, compared to 2003 sales. The August sales level is approximately 102% of the FBO's monthly average volume of 30,785 gallons for the past 12 months. FUEL SALES - CUMULATIVE 2001 - 2004 ° 400 c ° 350 ■ 2001 300 ❑ 20D2 Q 02 c° Z'O 1112004 0 '0 200 150 100 I I 50 0 • �Pa ��0 �P�- rya �P{ ,� ,� r� y�Q o� �� opo i • Local Area Data: Retail fuel prices at most local area airports remained stable in August, including FYV. Following is a comparison of regional retail fuel prices as of 9/9/04: Regional Jet Center (XNA) Avgas: 3.27 Jet-A: 2.99 Mogas Pinnacle Air (ASG) 3.02 2.77 Beaver Lake (Rogers) 3.02 2.75 Hughes Aviation (Bentonville) 3.09 (SS-2.71 ) 2.71 Siloam Springs (City-run) 2.35 (ss-1 .99) 2.25 Fayetteville Municipal 2.91 (SS-2.38) 2.80 1 .89 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 January of this year. The wholesale price for 100LL fuel fluctuated up and down in August, while Jet prices remain high. Wholesale Fuel Price Trend 45% 40% x Chy Jab A m 36% —xChg1OOLL ` . • i Sox u n 25% a lox 15% 10% 5x ox m Waak 2004 FYV Fuel Ops Facts: August 2004 fuel sales: 23,959 Jet - 76.4% 7.375 Avgas - 23.6% 31 ,334 Total Jet-A sold to FYV-based customers in August: 16,052 - 66.9% Jet-A sold to transient aircraft customers in August: 71907 - 33. 1 % Avgas FYV- based truck sales in August: 380 - 5. 1 % Avgas transient aircraft truck sales in August: 11429 - 19.3% Avgas sold to Self-Serve customers in August: 5, 566 - 75.4% • 87 MoGas gallons sold to Self-Serve customers in August: 643 o C) o O --1O m o > o 3 m m m m m mZ J o a m O DOK C) U) D3m °(. O 3mDA = m °:. � � . (p _ "O � v d O m S m m J v m S m J 9 m J m om 7 n 2. .m.. N (; t0 m o m » Jt0 OHO O `mG @. °: o m m m D - �+ J (n m' m 0N -n (o � 0 -n mmm < p m n O d Q" c go w A o 3 c m J J 3 T m O sm U m 0 S m C 4m1 < N c m m J wc J p D J J N J m CO J N N i m a m m N O m m m D 3 -n o a O A m O co 0) O m W m! 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