HomeMy WebLinkAbout2004-10-14 - Agendas - Final 1 .
• AGENDA FOR THE AIRPORT BOARD
October 14, 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. Minutes of the September 9, 2004 meeting.
• 5. Receiving of the Reports.
A. Charles Wallace, Chairman.
B. Ray Boudreaux, Director.
C. Rick McKinney, President, Arkansas Air Museum.
D. James Nicholson, Financial Coordinator.
E. Louise Powers, T-Hangar Report.
F. Construction Report.
G. Maintenance Report.
6. Old Business.
A. Economic Impact Study.
Action Requested: Direct staff to consummate a contract and forward
contract to City Staff Contract Review Committee and forward to Mayor
for Signature.
B. Amendment to Arkansas Aeronautics Grant #2068-04, to construct T-
Hangar "H". The amendment increases the grant by $50,000.00.
Action Requested: Accept Amendment to The T-Hangar "H" Grant and
forward to City Council for approval.
•
• October 14, 2004 Agenda
Page Two
7. New Business.
A. Proposed contracting guideline for Airport Board and Airport Staff.
Action Requested: Approval.
B. Re-wiring for T-Hangars A-D.
Action Requested: Approval for project scope and to put project out for
bids.
C. Lease with Harrison Mosley for restaurant in terminal.
Action Requested: Approval of Lease for City Staff Contract Review
Committee and signature by the Mayor.
D. Lease Amendment with Aviation Maintenance Professionals.
Action Requested: Approval of Lease Amendment to City Staff Contract
Review Committee and signature by the Mayor.
E. FAA Letter announcing the new Benefit Cost for the Tower.
Action Requested: Acceptance of new Benefit Cost Sharing for FYV
. tower for City Staff Contract Review Committee and City Council
approval.
F. New Fuel Provider Contract
Action Requested: Approval and forward to City Staff Contract Review
Committee and City Council approval.
G. Fixed Base Operator (FBO) Solicitation.
Action Requested: Direct staff to prepare a Request for Proposal for a
contract Fixed Base Operator to take over operating the Line Service and
to provide aircraft fueling and other services..
H. Revised Airport Capital Plan.
Action Requested: Approve revised Five Year Capital Plan for Budget
purposes.
8. Other Business.
A. Items from the Public.
B. Items from the Airport Board.
• 9. Adjourn.
. 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 Meeting.
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 4'h 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 I I inches thick. We have received the grant and can proceed with Taxiway
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• 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. Loewer 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
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• 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 '/4 " 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
9°i. 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 the Board adopts the
fuel pricing formula, but further leave it to staff to adjust downward,
when it will improve our competitive edge.
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
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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 4th, 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 3rd and August 30th or 31 ' . 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
• AIRPORT BOARD MINUTES
September 9, 2004
BOARD PRESENT: Charles Wallace, Frank Sperandeo, Bob Nickle, Janice Stanesic,
David Hollman
BOARD ABSENT: Otto Loewer, Dave Bowman
STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers
OTHERS PRESENT: Terry Collier-tenant, Chris Cheedle-Fayetteville Government
Channel, Wayne Jones-McClelland Consulting Engineers, Cherie Boudreaux-citizen
ITEM #1 : Welcome.
Chairman Wallace thanked those attending the meeting. He announced two Board
members were gone, but there was a quorum. Mr. Bowman is out teaching an aviation
class and Mr. Loewer is out of state. He stated they would take agenda items in a
different order because Mr. Nickle has to leave early.
ITEM #2: Agenda Review.
A. Review by the Chairman. C. Wallace listed the items on the agenda, recalling the
• Board had worked on the Budget for 2005 in several meetings and the Board and
audience would find that information listed on the last column on the Financial Report.
B. Comments from the Public. None.
ITEM #3: Minutes of the August 12, 2004 meeting.
C. Wallace stated the Board Secretary was not there today so they would defer the
approval of the minutes until later. He also commented he had some changes to make in
some of the wording.
ITEM #4: Receiving of Reports.
C. James Nicholson, Financial Report. J. Nicholson reviewed the FBO Report in the
agenda. Answering Mr. Wallace, he said the price of $2.80 for jet fuel did reflect the
price modification voted by the Board at the last meeting. He reported the local fuel
prices had remained about the same, except Bentonville has raised their prices, and
Siloam Springs self-serve Avgas is still lower than our self-serve Avgas. The wholesale
prices for jet fuel have remained high and the Avgas price had gone up and down during
the month. Speaking of the Financial Report, he called attention to the year end
projections on the fuel revenues. We are not making as much on the Avgas now that we
have the self-serve. There isn't as much profit with the self serve facility. The other big
change is the cost of jet fuel is up and the margin of profit is now less with the new price
modification formula. B. Nickel said that when we added the self-serve we knew we
would have to absorb the cost. Answering Mr. Wallace, R. Boudreaux explained the
revenue budget does not go to the Council for approval, just the expenditure budget. J.
Nicholson recalled that the City's Budget Department had projected the Airport would
1
• run out of money five years after the airlines left, but here we are in 2004 and with
careful management we still have money in reserve. Graphs handed out during the
meeting are attached as part of the minutes ("Operations as a % of Maximum" and
"Actual versus Projected Balance").
ITEM #5: Old Business.
A. Request from "Friends of the Agnes Stockburger Library", Winslow, Arkansas.
C. Wallace reported they had pulled their request as this location did not fit their needs.
Bob Nickel moved to remove from table the request and dismiss the
item. Frank Sperandeo gave second to the motion which carried.
ITEM # 6: New Business.
A. Approval of the Airport Budget for 2005.
The fuel pricing formula and hangar rent analysis that were discussed as part of the
budget decision process are attached as part of the minutes.
A motion to approve the Airport Budget for 2005 and forward the
budget to the City was made by Bob Nickel and seconded by Janice
Stanesic. The motion carried.
. B. Approval of a Change Order for lighting fixtures for T-Hangar "H". C. Wallace
said lighting for the T-Hangar was part of the contractor's bid and tenants had felt the
lighting was inadequate. The Board had asked McClelland Engineers to give us a change
and Wayne and Ray have recommended using three 250 watt metal halide fixtures which
are covered and comply with the fire codes. The Change Order is for $ 1 ,763 .00. This
includes lighting for the end units in the new hangar.
A motion to approve the Change Order was made by Frank
Sperandeo and seconded by David Holtman. The motion carried.
C. Wallace expressing his feelings said that this was a step in the direction in really doing
something for the folks on the east side and he would like the word to go far and wide
that staff and engineers are sensitive to their needs. He also said that he felt the matter
should be reciprocal on the part of the hangar tenants. He encouraged airport
management to ask persons who leave lights on around the clock and who keep space
heaters running during the winter months to help us keep our cost down through energy
conservation.
C. Discussion of the Airport Entrance Project. R. Boudreaux showed two different
drawings of a proposed new entry drive and explained they had been prepared by City
engineers. One example is to line up the entrance with the drive coming to the terminal
building. The other would be further to the north coming through the middle of the
parking lot lining up with the center of the terminal. He explained he would like the
• Board to choose and then he could put it out for bids. F. Sperandeo wanted to make sure
the radius would be large enough where tractor trailer trucks could tum without going
2
• over the curbs. B. Nickel said the State Highway Department would have the final
approval on a new entry drive. W. Jones said the Board has the opportunity to call the
Highway Department.
Board Consensus: The Board preferred the least expensive entrance,
which was the south entrance.
W. Jones suggested leaving the existing entrance; the U. of A. could use it.
A motion to proceed with the detail design was made by Bob Nickel
and seconded by David Hollman. The motion carried.
The Board will review the modified design at the next meeting.
ITEM #4 : Receiving of Reports
B. Ray Boudreaux, Director. R. Boudreaux explained he had attached his Trip Report
to his Monthly Report in the agenda, and said he had received great value from that
conference. Speaking of the upcoming ballgame weekend, he said he had been given
permission to park light planes on the new concrete taxiway and ramp on the east side for
overflow traffic. We will use the staff car, since it has a tower radio, to move people
back and forth to the terminal. U. of A. will have Beneficial Occupancy on September
21 ' to receive f imiture. Said he had signed the T-Hangar Permit Application that day,
. September 91". It should be ready to have tenants move in by the end of January or
February. We are advertising for a new fuel provider, the current contract is ending. The
RFP's are due in by the end of the month. Key staff members from the City will help
evaluate the contracts. Stated he would be attending the AAOA Conference next week
and the State Aeronautics will have their monthly meeting there, also. Answering Mr.
Sperandeo, the City does have a good alliance to the FEDC (Fayetteville Economic
Development Council), saying the Mayor and himself are on the Board of Directors.
Said he and Steve Rust talk daily, Steve is a great guy and is a pilot. Said he is putting
forth to Steve the benefits of the airport for Fayetteville's economic development and he
would relay Mr. Sperandeo's concerns to Steve. The aviation industry is growing and
looking for new sites. The State Aeronautics will be meeting next week and we have
submitted an amendment to increase the T-Hangar grant.
D. Louise Powers, T-Hangar Report. All the T-Hangars and storage units are rented,
and there are about seventeen names on the waiting list. There were 12 overnights and 8
monthly tenants in the FBO hangar.
E. Construction Report. W. Jones said they are working on the outside seeding around
the U. of A. hangar and should be able to tum it over to them by the end of next week. R.
Boudreaux, answering C. Wallace said that when the U. of A. moves out of their hangar
to the new hangar, AMP plans to expand their business into the U. of A. side of the
hangar. W. Jones told they would be doing the joint sealing next week on the new
taxiway. Core samples are also scheduled for next week to make sure the taxiway meets
the FAA specifications. He said they anticipate they will pass. This will not weaken the
•
taxiway and- the-3"-holes-will-be-filled-with-a non=shrink grout:—Contractors-are working —
on the apron area inside the area leased by the Forest Service. Taxiway Alpha will be
3
i
• open soon and the Taxiway Alpha extension has begun. There may be a few nights they
will close the runway, but that will be coordinated with the airport staff to minimize the
down time. It should be completed by Thanksgiving. He said the contractor had asked
FulFab for the dimensions for the T-Hangar so they can start staking out the foundation.
F. Sperandeo reported that it looked like some striping was coming off of Taxiway E.
F. Maintenance Report. R. Boudreaux stated the grass is still growing and our guys
have continued to work to keep up with cutting the grass. Some restrooms have had
problems and they have been working on them. They replaced all the tires on the jet
truck. Work is to begin on the Post Office area and our guys salvaged the office doors
and ceiling tiles. Our guys have the paint to start work on the light poles. He said he had
the maintenance guys weed-whacking the highway fence line and in front of the terminal.
He explained the City is now participating in "P" cards, a credit card, which will make
purchasing easier, instead of using Purchase Requisitions and Purchase Orders. We have
used it to purchase a hose for the self-serve facility and will have the hose tomorrow.
A. Charles Wallace, Chairman. C. Wallace, Chairman, reported on the Board's focus
on Strategic Planning and noted that there will be new information at the next Board
Meeting. He reported that he and Mayor Coody had met with the Board of the Arkansas
Air Museum to offer concern and support for the museum during this time of staff and
Board transition. He went on to say that, on completion of his term on the Airport Board
at the end of the year, he will continue to be interested in the airport. His specific interest
is the museums and, should an opportunity arise, he would like to work on expansion of
the two museums and explore the possibility of a complex of museums around a theme of
• transportation in NW Arkansas.
Ansering F. Sperandeo, C. Wallace asked that the re-wiring of T-Hangars A through D be
placed on the October agenda. R. Boudreaux said there would be a grant request
involved and it needs to be completed by next month.
ITEM #7: Other Business.
A. Items from the Public. None
B. Items from the Airport Board. None
C. Wallace noted Cherie Boudreaux, Ray's wife, was present and C. Wallace expressed
appreciation that she attends many of the Board Meetings.
Meeting adjourned at 3 : 10 p.m.
Dave Bowman, Secretary Date
4
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• T HANGAR RENT ANALYSIS
Fayetteville Municipal Airport, Drake Field
At their March meeting, the Springdale airport Commission increased T Hangar rent in
order to make up a shortfall in funding for the current fiscal year. Springdale has only
two hangar buildings comparable to those at FMA Drake. The other buildings at
Springdale are open bay: three buildings/8 units each; and rolling door hangars: four
buildings/two with 8 units, one with 10 units and one with 11 units. The comparable
buildings have 8 units and 9 units.
Current Rent New Rent Rent
Building SF Rent SF/Mo Rent SF/Mo SF/Yr
Springdale hangar 6: 1392 135 . 10 155 . 1114 1 .34
Springdale hangar 8: 1334 130 . 10 150 . 1124 1 .35
FMA Drake hangar A 1392 148.05 . 1064 (155) . 1114 1 .34
FMA Drake hangar B,C,D 1050 120.75 . 115 (127) . 1210 1 .45
FMA Drake hangar E,F,G 1440 148.05 . 1028 (160) . 1114 1 .33
This analysis is for discussion only. The new rates for the FMA Drake hangars are based
. on the new Springdale rates per square foot. It is interesting that hangars E, F, and G are
6% larger and the rent as presented is 6% more. The smaller FMA Drake hangars have
been increased using our formula using a change in the CPI as indicated below.
CPI Computation: February 2002 - 177.8
February 2004 — 186.2
120.75 x 1 + current index — base index + (120.75 x .01 ) = new rent amount
Base Index
120.75 x 1 + .047244 + 1 .2075 =
126.45471 + 1 .2075 = 127.66 new rent for FMA Drake T Hangars BCD
Applying the formula to the rent for FMA Drake large hangars the new rent would
increase from $ 148.05 to 1156.52 using the change in the CPI plus 1 % from February 02
until February 04.
•
FAYETTEVILLE
AIRPORT ADMINISTRATION OFFICE
THE CITY OF FAYETTEVILLE, ARKANSAS
October 6, 2004
QUARTERLY REPORT
3rd QUARTER 2004
Director, Aviation and Economic Development
Fayetteville, Arkansas
July, August, September 2004
AVIATION:
The most significant development for this quarter was the reply from the FAA contract tower cost
share folks pursuant to our reply to their benefit cost analysis preliminary findings. The new rating is
91 % which means that we will be required to pay 9% of the operating costs for the Air Traffic
Control Tower (ATCT). The cost share will begin in February 05 with our cost estimated to be
$26,000.00 annually. This is a significant reduction from the $ 119,000.00 that we put in the 05
budget. That number has already been changed with the City Budget Office to reflect the new
amount believing that the Airport Board will accept the new number in order to keep the ATCT
open.
• Phase One of the USDA Forest Service Fire Base project is nearing completion. All that remains is
to install the light fixtures, seed the shoulders and complete the paperwork. Phase Two, of the
project to construct the Taxiway "E" connection to the new Taxiway "A" parallel, is moving along
very well. We held pre-pour meetings with the contractor to determine the best and fastest way to get
the work done with minimum airport down time. We are planning to close the runway on a Monday
and Tuesday to pour the concrete. The USDA has awarded their project to construct the buildings
for their operation. We held an initial meeting to discuss the Large Scale Development process and
how we might help in the process. They plan to start their construction in the Spring. In the
meantime, they could use the ramps and taxiways for temporary operations.
The USPS will hold a pre-construction conference the same day as our board meeting in October.
They will expect their contractor to get the work done. in about 100 days so that they can vacate their
facility in Greenland by the end of the year. The new facility should be open to the public sometime
before January 1 , 2005.
The U of A Flight Department has taken Beneficial Occupancy of their new hangar and has vacated
their old building. There are still some items to be fixed in the new building including the floor
coating and lighting controls. We are working with the contractor to get repair plans.
Aviation Maintenance Professionals (AMP), our based maintenance operation has signed an
• agreement to lease the entire building vacated by the U of A. We have agreed to rent concessions for
the first six months to help with the relocation and additional utility deposits. We are entering into
the winter months which are the slow months for maintenance shops.
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING FAYETTEVILLE, AR 72701
PHONE 50 1 -718-7640 Exc. 5 9 FAX 501 -718-7646
. Quarterly Report
3rd Quarter 2004
Aviation and Economic Development
Page Two
We received 5 responses to our request for proposal for the fuel service provider. The Avfuel
contract expires at the end of October. The City Purchasing Agent formed a selection committee to
evaluate the proposals. Western Petroleum, an ExxonMobile representative, was the apparent
winner based on the price of Jet A and work to upgrade the fuel farm. The new contract is for five
years and must be renewed each year. All of the proposals have a 90 day cancellation clause.
Should negotiations fail, we will go to the second place finisher, Avfuel.
We received a proposal to do an economic impact analysis from Dr. Jeff Collins, Director of the
Center for Business and Economic Research at the University of Arkansas. Dr. Collins has agreed to
evaluate the economic impact of the Airport to the community for $4,987.00. He proposes to have
the project complete within 60 days of approval. While attending the Arkansas Economic Developers
Conference in August, 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 but the written
proposal did not cover the necessary items. I will present Dr. Collins' proposal to the Airport Board
at their October meeting.
• I attended the annual Arkansas Airport Operators Conference in Hot Springs September 12,h through
14a'. The Arkansas Department of Aeronautics held their meeting at the conference where we
presented our AIP project to construct the Taxiway `B" and "A" extensions for support. We also
requested an additional $50,000 for the T Hangar H project. Both requests were approved.
The entire staff and several volunteers worked heavy aircraft traffic for two game weekends during
this quarter. Texas and Alabama were banner weekends for the operation. There were 117 aircraft
reported on the ramp at FYV for the Texas Game and more that dropped off passengers and returned
to pick them up. A very special thanks to all the volunteers: Doc Wallace, Frank Sperandeo, Denise
Nicholson, and Collette Bates, Bobby from the Ozark Military Museum and Turner from the
Arkansas Aviation Technology Center. And, the great staff of FMA Drake Field.
We interviewed four applicants for the job left by Tom Marden. Tom is going to school full time--
"orders from home." We have hired Chad Wilson. He is Ryan's brother whom you see around the
airport washing aircraft. We are excited about having Chad. He brings a wealth of experience, is a
graduate of AATC and is eager to make our operation the best it can be.
We met with Don Harris, our FAA Project Manager to revise our five year plan for the FAA. We
were able to change some long term projects to projects more in line with our change in mission. I
will present the new CIP to the Airport Board for consideration.
We continue to meet with the City Directors on the budget. Two to three meetings each week are
required to review the entire budget.
• Quarterly Report
3rd Quarter 2004
Aviation and Economic Development
Page Three
Fuel sales continue to be flat due to the cost of fuel. This week the cost of oil exceeded $52. While
sales have been slightly better, many transients continue to tanker the fuel from home base since
typically home base will negotiate a favorable price for their based aircraft. We continue to be
hopeful that the price will return to a more normal level in the near future and sales will continue to
increase.
The fence destroyed by the flood on the south end of the field has been repaired and inspected.
Project completed.
Construction of T Hangar H was awarded to Architectural Constructors, Inc in the amount of
$314, 135 plus a 5% contingency. A Notice To Proceed has been issued. The contractor is having
difficulty getting the building delivered on schedule but plans to start on the foundations and
pavement in the very near future. We temporarily installed a new light fixture in one of the existing
T Hangars to help determine the "right" configuration for the new T Hangar "H". The Airport Board
approved a new configuration of three 250 watt low bay fixtures for each bay in the new building and
a change order will be issued. We awarded Architectural Constructors a contract to repair the
• permeable concrete on the east side of T Hangar G in conjunction with the work on T Hangar H
foundation and grade work.
There was some difficulty getting a permit for the T Hangar "H" project. We met with the Planning
Commission Subdivision Committee to get approval for the permit as planning staff had determined
that we needed a new Large scale Development. A modification to our approved large scale
development was approved to allow the new building to replace a fire training tower that will never
be constructed. I asked the committee if they would accept a new and FAA approved Airport Layout
Plan as our large scale development and they agreed. We will present the approved ALP to them
when we get it done. The contractor should break ground in the very near future.
Our annual FAA Airport Certification Inspection was conducted in July. There were no major
discrepancies. There were two paint complaints: one that the taxiway edge stripes be outlined in
black; and the other that the taxiway strip be spaced three feet edge to edge as it joins the runway
centerline not three feet center to center. The taxiway edge strip outlining is scheduled. We will fix
the taxiway strip on the runway at the next painting. We completed the new Airport Certification
Specifications and they were approved by our FAA inspector. They have been distributed IAW the
distribution guide.
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.
• James attended a training session in Hot Springs on detecting financial fraud in accounting.
iQuarterly Report
3`d Quarter 2004
Aviation and Economic Development
Page Four
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.
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. We also met with Stephens, Inc to see if the
project would be eligible for Bond financing. Dennis Hunt agreed that the project qualified and that
letters of intent would need to be secured by the users committed to using the rail and paying the
carload fees in order to get investors. This rail spur is very important to the industrial park but could
open up potential development for the east side of the airport. We must get agreement from all
potential users before we can give the bonding agency the go ahead.
Bill Ramsey and I traveled to Little Rock to meet with the ADED staff to gamer support for the
Hannover House Development. We talked the Railroad spur to the Fayetteville Industrial Park as
well and received strong support from ADED.
The Fourth of July fireworks were held at Fayetteville Drake Field for the first time. The event was
put together with about three weeks notice. The only real problem was parking for folks that arrived
late. All the folks inside the airport property had a great time and expressed appreciation for the
event. The ground was wet so many of the parking areas were not usable. We may be asked to do it
again next year. If so, we will ask for volunteers from the Board to work on a special committee to
organize the 2005 event. There has been some talk about doing the display at the fairgrounds, but
initial investigation reveals that the area may be too congested with wooden structures. There is also
some interest in having the display at Lake Fayetteville. A decision is yet to be made.
We made several FEDC fund raising visits in July and August. The organization is funded for three
years and the new director is now in place and conducting business. Mr. Rust will make things
happen in Fayetteville.
We are working with the Fayetteville Chamber of Commerce for better access to the retail district
surrounding and including the Northwest Arkansas Mall. We are making some progress the first step
being the widening of Shiloh Drive near the entrance to Fulbright west of Steele Crossing. This
project was in response to the FCC Transportation Committee resolution that access to the retail
district was a very high priority. The Transportation Committee remains dedicated to transportation
improvements including improvements to the Fayetteville Municipal Airport, Drake Field.
pectful Submitted,
Ray M. Bou reaux, ire r
FAYETTEVILLE
AIRPORT ADMINISTRATION OFFICE
THE CITY OF FAYETTEVILLE, ARKANSAS _
TRIP REPORT
ARKANSAS AIRPORT OPERATORS ASSOCIATION CONFERENCE
Hot Springs, Arkansas
September 12-14, 2004
The annual Arkansas Airport Operators Conference was held in Hot Springs in
September. The conference opened with a social Monday evening with the first session
Monday morning with a welcome by Mayor Mike Bush. The most interesting factoid
from the Mayor was the fact that there are 47 natural springs in the city that flow at 147
degrees Fahrenheit. The community hosts 2,000,000 visitors a year.
The first business session was TSA. Rick Ham stood in for the scheduled presenter. He
talked about the commercial service airports and when discussing General Aviation,
indicated that the information was presented for guidance only, at least today. He
indicated that in the future, all GA guidance may be mandatory. While it is not
mandatory on a day to day basis, there is mandatory guidance for certain activities.
Maintenance, Flight Schools and Cargo facilities require an additional level of security—
mostly key control programs.
TSA has three professional inspection modes:
National Focus
Local Focus
National Special Security Event (NSSE)
Each mode can contain covert and visible elements and usually involves Law
Enforcement. Mr. Ham reinforced the airport watch program started by AOPA using the
1 -866-427-3287 or 1 -866 GA SECURE.
The General Membership meeting was held before lunch. The most significant part of
the meeting was that the 2005 conference would be held in Shreveport, LA as a joint
meeting with the Louisiana Airport Operators Association. This decision was made in
response to the current organization president who had been involved with the AAOA
before moving to Shreveport. The organization is fiscally healthy and is offering aviation
scholarships.
Ken Quimby was the lunch speaker. Mr. Quimby is the Director of the Arkansas
Aerospace Education Center. Attached to this report is a copy of his brochure talking
about their new IMAX theater which is opening in early 2005. He is a very good speaker
and has a great story to tell. I would recommend him as speaker for our museums. Not
only interesting, but helpful.
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING FAYETTEVILLE, AR 72701
PHONE SOI -718-7640 Ext. 5 • FAX 501418-7646
• Page 2
AAOA Trip Report
September 2004
The FAA roundtable was next. Ed Agnew introduced the session with the fact that his
region has 75 NIPIAS airports and 74 receive federal funding. The region program for
FY2004 is $37.7M. In order to get a grant for 2005, you must start now. Each new grant
needs a new DBE plan approved by the FAA.
He mentioned that all grants must be based on Bids. While we are fully aware of that
fact, he also allowed that airports could apply for a receive engineering only grants. There
was a question on audits to which he replied that Federal audits follow State policy and
procedure.
His most emphatic statement: "there is a new sheriff in town." If your project is not in
the FAA CIP, it will not get funded the next year. He recommended that airports prepare
their CIP at least 18 months in advance to insure consideration. Each April, airports need
to provide FAA with a sketch and a detailed cost estimate. All projects need to be based
on an Aeronautical Need or Aviation Demand. He also said that entitlement dollars
can be used for revenue producing projects.
Mark Stodola talked about Airport Tenant Leases. His only interesting statement was
• that the State of Arkansas allows for double the rent for holdovers. Arkansas also allows
that if notice is properly presented and a tenant does not move out, the tenant must pay 3
times the rent.
The first session on Tuesday was the DBE program. James Moore was a substitute
speaker. He talked last year and there was no new information. A DBE plan is required
whenever more than $250,000 in federal funds are used. We have had a lot of difficulty
finding new DBE contractors. Mr. Moore is from Arkansas Highway and Transportation
Department and has agreed to get us a new listing of DBE contractors.
David Olive was back this year to get us up to date with activities in Washington DC.
Try to think in order to plan and protect. TSA has put the "fun" in the word
"dysfunctional." HE is very afraid that HSA/TSA has a lot of holes since it is new and
many of the employees are temporary. AAAE is fighting the requirement to screen
anyone in the AOA. He is sure that GA security requirements are coming. He is sure
there will be no transportation bill this FY.
The session on electrical systems was cancelled.
•
• Page 3
AAOA Trip Report
September 2004
The final session was the Arkansas Aeronautics Commission meeting. We were
approved an additional $50K for the T Hangar H project and the State match for the
Taxiway "A" Phase II to extend Taxiway A and Taxiway E.
The meeting was more valuable than the sessions as it gave me an opportunity to talk
with the other airport operators and share problems and solutions.
Respectfully submitted,
4Rayoudreaux
Director
Aviation and Economic Development
•
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FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DAN COODY, MAYOR
1600 School Ave., Suite F
Fayetteville, AR 72701
AVIATION AND ECONOMIC DEVELOPMENT 170.715.7012
RAY Y. BOUDREAUX, DIRECTOR Agenda Item 5d: I
TO: Fayetteville Municipal Airport Board
THRU : Ray M. Boudreaux, Director
FROM: James Nicholson, Financial Coordinator
DATE: October 14, 2004
SUBJECT: FBO Report
Tower Operations Graph: This graph compares monthly totals of aircraft operations
since January 2000. There were a slightly less number of operations in September
than in September 2003. The year to date cumulative count shows a 14.6% increase
over 2003.
OPERATIONS - CUMULATIVE 2000 - 2004
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FBO Fuel Sales: As can be seen in the graph below, fuel sales volume continues to
show growth , approximately 7. 1 %, compared to 2003 sales. The September sales level
is approximately 132% of the FBO's monthly average volume of 33, 189 gallons for the
past 12 months.
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• Local Area Data: Retail fuel prices at most local area airports remained stable in
September, including FYV. Following is a comparison of regional retail fuel prices as of
10/14/04:
Regional Jet Center (XNA) Avgas: 3.22 Jet-A: 3.08 Mogas
Pinnacle Air (ASG) 3.23 3.09
Beaver Lake (Rogers) 3.23 2.99
Hughes Aviation (Bentonville) 3.07 (SS-2.71 ) 2.99
Siloam Springs (City-run) 2.35 (ss-1 .99) 2.25
Fayetteville Municipal 2.91 (SS-2.38) 2.99 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.
Prices of both aviation fuels have increased dramatically in recent weeks.
Wholesale Fuel Price Trend
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FYV Fuel Ops Facts:
September 2004 fuel sales: 34,799 Jet - 79.6%
8.931 Avgas - 20.4%
43,730 Total
Jet-A sold to FYV-based customers in September: 12,658 - 36.4%
Jet-A sold to transient aircraft customers in September: 22, 141 - 63.6%
Avgas FYV- based truck sales in September: 431 - 4.8%
Avgas transient aircraft truck sales in September: 3,822 - 42.8%
Avgas sold to Self-Serve customers in September: 4,677 - 52.4%
• 87 MoGas gallons sold to Self-Serve customers in September: 476
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Preliminary Proposal :
Analyzing the Economic Impact to the City of
Fayetteville from Operations and Capital
Improvements at Drake Field
September 14, 2004
SAM M.
W 0
UNIVERSITY COLLEGE 4 BUSINESS
ARKANSAS
Center for Business and Economic Research
Center for Business and Economic Research
Reynolds Center Building 217
Sam M. Walton College of Business
I University of Arkansas
Fayetteville, Arkansas 72701 - 1201
(479) 575-4151
Contact: Dr. Jeffery T. Collins, Director
r
SUMMARY OF QUALIFICATIONS
The Center for Business and Economic Research (CBER) in the Sam M. Walton College
of Business at the University of Arkansas is a public service/outreach organization whose
mission is to serve its constituents with unparalleled research support; basic and applied
business and economic analysis; timely, relevant business, economic and related public
policy information; and other outreach activities. CBER, established in 1943, publishes
the Arkansas Business and Economic Review, which includes economic analysis articles
and a variety of statistics detailing the economic health of the state and each of its
counties. Other publications include monthly Leading Economic Indicators and quarterly
QuickStats. The staff members of CBER have extensive experience with and a thorough
understanding of the economic issues that affect the citizens of the state of Arkansas.
With this knowledge, CBER works with local, state, university, and business interests to
supply economic analysis to provide insight into complicated issues.
There are many examples of organizations and companies for whom CBER has
performed research. These include the Mental Health Council of Arkansas; the City of
Lowell; Beverly Enterprises, Inc.; Mercury Energy Inc. ; the Arkansas Department of
Finance and Administration; the Arkansas Legislature; the City of Fayetteville; the
Tennessee Valley Authority; the U.S. Army Corps of Engineers; the National Science
Foundation; the Arkansas Department of Education; the Northwest Arkansas Regional
Planning Commission; the Supply Chain Management Research Center; the Mack-
Blackwell Transportation Research Center; the Arkansas Farm Bureau; Arkansas Power
and Light Company; Cheyne/Cooper & Associates; and the Arkansas Science and
Technology Association. The research topics have covered a wide range of public
policy issues such as transportation, migration, health, environmental issues, education,
labor policies, taxation, revenue forecasting, and economic impact studies.
In addition, CBER staff partner with the University of Arkansas Community Design
Center (UACDC) to provide economic development services to communities throughout
Arkansas. For example, CBER staff members have worked on projects for Pea Ridge,
Brinkley, the Philander Smith neighborhood of Little Rock, Highfill, Bentonville, and El
Dorado, providing state-of-the-art economic analysis to fit the needs of each community.
The members of the CBER team are uniquely qualified to conduct an economic impact
study of the general aviation services provided by Drake Field. With substantial
economic, public policy, and community planning experience, CBER will fulfill all of the
tasks highlighted in the Statements of Work.
•