HomeMy WebLinkAbout2004-09-09 Minutes• AIRPORT BOARD MINUTES
September 9, 2004
BOARD PRESENT: Charles Wallace, Frank Sperandeo, Bob Nickle, Janice Stanesic,
David Hollman
BOARD ABSENT: Otto L.oewer, 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.
I
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.
agenda. Answering Mr. Wallace, he said
price modification voted by the Board at
J. Nicholson reviewed the FBO Report in the
the price of $2.80 for jet fuel did reflect the
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
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 Hollman. 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 turn 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.
area leased by
the Forest Service.
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 furniture. 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 ovemights 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 turn 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
9
• 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
Fu1Fab 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.
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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 = JU7.66 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 $156.52 using the change in the CPI plus I% from February 02
until February 04.
•