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HomeMy WebLinkAbout2005-08-11 - Agendas - Final • AGENDA FOR THE AIRPORT BOARD MEETING 1 :30 pm, August 11, 2005 4500 S. School Avenue Airport Conference Room • 1 . Welcome and Agenda Review — Chairman Bob Nickle. A. Comments from the Public. 2. Minutes of the July14, 2005 minutes. 3 . Receiving of the Reports. A. Bob Nickle, Chairman. B. Ray Boudreaux, Director. C. James Nicholson, Financial Coordinator. D. Louise Powers, T-Hangar Report. E. Construction Report. F. Maintenance Report. 4. Old Business. A. Terminal Rehabilitation, Task Order #11 , with McClelland Consulting . Engineers and Wittenberg Delony and Davidson. . Action Requested: Accept and forward to City Council for approval at the Septeeting. B. Change Order # Ito the West Side General Aviation Apron. Action Requested: Accept and forward to City Council for approval at the August 16 meeting. C. Economic Impact Study. Action Requested: Accept and forward to City Council for approval at the September6 meeting. D. Update on Arkansas Aviation Technology Center's Request for Assistance. E. Update on the Master Plan, by McClelland Consulting Engineers and Bernard Dunkleburg. 5. New Business. A. Amend Temporary Use Agreement with Full Throttle, Inc. Action Requested: Approve and send through City's Staff Review. 6. Other Business. A. Items from the Public. B. Items from the Airport Board. . 7. Adjourn. Note: Strategic Planning Meeting: Next Airport Board Meeting; MINUTES OF THE AIRPORT BOARD MEETING . July 7, 2005 MEMBERS PRESENT: Bob Nickle, Dave Bowman, David Hollman, Janice Stanesic, Frank Sperandeo, Vaughn DeCoster MEMBERS ABSENT: Otto Loewer STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Erick Risley-Million Air; Mike Kratchmer-AATC; Kathy Deck-U. of A. CBER; Terry Collier-tenant; Bob Burbage-Superior Industries; Marsha Melnichak-NW Ark. Times; Wayne Jones-McClelland Engineers, Christina Crouse-Airport Hair Salon; Rick McKinney-tenant; John P. (Pat) Ross-Ross Executive Aviation, Inc., Steve Odom-Fayetteville Government Channel ITEM #1 : Welcome and Agenda Review-Chairman Bob Nickle. A. Comments from the Public. None. ITEM #2: Minutes of the June 9`n and June 22nd Special Called Meeting. A motion to approve both sets of minutes was made by David Holtman and seconded by Dave Bowman. The motion carried. ITEM #3 : Receiving of Reports. A. Bob Nickle, Chairman. Added item to the agenda, a report on the Economic Impact Study. B. Ray Boudreaux, Director. City Council awarded the electric contract for re-wire of hangars. All • State Aeronautics grants have been closed and received check for $580,551 .00. City Council awarded sale of the snowblower for $ 172,000. Introduced Eric Risely of Million Air, he will manage FBO here and at Houston. The FAA is installing a PAPPI at the airport. C. James Nicholson, Financial Coordinator. Flight operations are 20% behind last month, but fuel sales continued to grow, partly because of the Air Show, we are ahead of same month a year ago. The Financial Report shows adjustment of expectations when Million Air begins paying rent, and shows adjustment with a decrease in personnel costs. Bottom line we will have just below $600,000 in our reserve fund at year end. R. McKinney said insurance will pay for the Museum roof repair and that cost can be removed. J. Nicholson explained the west side ramp and entrance will be in two phases, two years. R. Boudreaux explained the project is 100% grant funded, no funds spent from the reserve fund. D. Louise Powers, T-Hangar Report. All T-Hangars and storage units are rented except one hangar and storage that came open this week and expect it to be filled tomorrow. The FBO hangar had four overnights and two full time and two part-time tenants. E. Construction Report. W. Jones expects two or three bids on the west apron project. It will be heavy duty pavement. We are providing a lot of information to Burnard Dunkleburg for the Master Plan. They will be here for a meeting early August, and expect first working paper late September, six public meetings are planned. West ramp plans are available for viewing. E. Maintenance Report. Staff repaired the mower. The maintenance truck's transmission blew out and the shop gave us a six year old truck. Some problems with the hangar overhead doors occurred. Chairman Nickle said to put notice in the invoices to contact the office if they notice door problems. . ITEM #4: Old Business. A. Review Architectural Layout of Terminal by Richard Alderman. Director Boudreaux presented the architects' "draft" drawings. The Customer Service Representative' s desk will have a view of the flight line and the front of the terminal. The blue awning will be removed, passengers will 1 be dropped off at the door, get red carpet treatment, then the plane will be moved to another location. Restaurant seating will be moved further down the north hall and that would open up two retail locations in the old seating area. He asked the Board to get their suggestions to him. Chairman Nickle stated he thought they had agreed at first to focus on the central lobby and Million Air. P. Ross stated he was the longest commercial tenant in the building, and what if he didn't want to be moved. Chairman Nickle said no decisions would be made today. V. DeCoster said the Board Consensus was the principal interest was the lobby and the initial entrances to the FBO. The hair salon and retail would be moved later on. E. Risely said Million Air is going to contribute to some of the cost. Chairman Nickle announced the Strategic Planning Meeting for 1 :00 on August 4h. He suggested Ray meet with Richard Alderman, let him know what the Board wants, to focus on the main lobby and restrooms, and get some issues worked out before the meeting. V. DeCoster said they wanted to make sure all tenants, tenants with history, are pleased, not just Million Air. B. Status of Arkansas Aviation Technology Center's Request. Director Boudreaux said he and Mike have been working on the request, and things are changing daily. The request was sent through the City's Staff Review process and was stopped at the City Attorney' s office, saying it was unlawful to grant waiver of grant unless can show benefit to the public. Discussion followed. C. Economic Impact Study, Kathy Deck, U of A. Explained a 1997 study of the Airport showed an estimated economic contribution at $43,275,000.00 (still had airline service). She gave a "draft" summary of the report and they estimate the Airport was directly responsible for $ 10,845,589.00 economic activity in 2004, had indirect and induced economic output of $2,963,727 and $3,338,884; and accounted for total economic activity of $ 17,038,201 in Washington County. Jobs: direct employment of 95.2 people, created indirect and induced employment of additional 34.7 and 40.4 people, and produced a total of 170.3 jobs in Washington County. Tax impact was discussed. ITEM # 6: New Business. None . ITEM #7: Other Business. A. Items from the Public. R. McKinney reported on AirFest. Stated the Canadian Snow Birds will be here for performance in October and members will visit with schools. Chairman said that was a great example of community involvement. B. Items from the Airport Board. V. DeCoster stated with all the renovations going on he would like to correct an error of the color scheme. A motion that Airport renovations, color schemes, reflect the heritage of the community as the home of the Razorbacks, i.e. red in color, for canopies, color schemes, and trim, was made by Vaughn DeCoster and seconded by Janice Stanesic. Discussion: It was mentioned that Million Air and UofA might like to coordinate signs on the ramp. The motion carried. D. Bowman announced a Young Eagle' s event at Drake Aviation Saturday morning for children ages 8 — 17. F. Sperandeo offered flights any time, said he is insured, to call him at home. Adjourned at 2 :55 pm. Dave Bowman, Secretary Date 2 J FAYETTEVILLE AIRPORT ADMINISTRATION OFFICE THE CITY OF FAYETTEVILLE. ARKANSAS August 10, 2005 MONTHLY REPORT Director, Aviation and Economic Development Fayetteville, Arkansas July, 2005 AVIATION: Operations for the month of July were back down to the trend line but were more than July 2004. Fuel sales continued a steady increase as well so the trend continues to show a gradual climb. The price of fuel is changing the way many use their aircraft. Our Jet-A sales to transient aircraft have gone down dramatically. Corporate aviation departments routinely have very favorable fuel agreements at home so take steps to not need fuel on the road. We really appreciate our based customers keeping the sales up. The Arkansas Air Museum conducted the second Aviation Camp of the year. Another group of . young aviators now have the bug to hopefully pursue a future in aviation. July began the City budget process and as in previous years, the Airport Board met in strategic Planning session to review the past projects and to approve submission of the projects for the next five years. Over the next several months James and I will be crafting the budget for the next year. The operations budget, which has been tied to the FBO will be eliminated in its entirety since Million Air will be providing those services under contract to the City. Airport Administration will assume the responsibility of contract administration and oversight and expenses related to the contract will reside in the administration budget. We continue to make progress on the Terminal Building Rehab. The Airport Board at their Strategic Planning session agreed to the floor plan and directed staff to contract for the final design and bid documents. The Board will consider the Task Order #11 to McClelland Consulting Engineers (MCE) to prepare the plans and specs for the project. MCE's partner in the project is Wittenberg, Delony Davidson, Inc. (WDD) with Richard Alderman the primary architect. Initial meetings with Banard Dunkleburg Airport Consultants will be held in conjunction with the August Airport Board meeting. This visit will be to gather information necessary to begin the Airport Master Plan. • Lightning Electric started the T-Hangar Re-wire Project. We notified the tenants that their aircraft will be relocated to the FBO hangar during the project to eliminate any possibility of damage to an aircraft. The first week of the project the journeymen were working out the details 4500 SOUTH SCHOOL AVENUE. SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701 PHONE 501 -718.7640 Exc. 5 • FAX 501 -718-7646 1 • and some kinks in the project, but it looks like it will be smooth sailing through the project. We attended the Department of Aeronautics meeting and presented the Rewire project for consideration. We were approved for a 50% match for the project. Million Air will take over the fuel and line service FBO September 1 , 2005. We are starting the changeover checklist to insure that all equipment is properly transferred and that consumables are accounted for. We will do a complete inventory August 31 , 2005 to insure that we start with a clean slate. Eric Risley of Million Air Houston has been assigned as manager for Million Air Fayetteville. As of this writing, all of our current staff has been offered positions with Million Air. The high bid for the Snow Blower was $ 172,000.00 from Abbotsford, British Colombia. We have the check and have visited with the Fleet Supervisor to purchase the three pieces of equipment we want to replace the snow blower. We will purchase, with Board approval, a front end loader/back hoe, a skid steer with broom attachment and a small dump truck with an 8 foot plow attachment and spreader. These pieces of equipment will allow for much greater flexibility all year long and still allow for effective snow removal. We have the final part of the West Side General Aviation Apron Project on the City Council Agenda for the August 16th meeting of the City Council. Following our last meeting and just days before the City Council meeting, the FAA called and withdrew all second year funding from the project. We quickly drafted a Change Order to reduce the project cost. Following negotiations with the contractor, the scope was reduced, but not as much as the FAA had required. We then entered into negotiations with the FAA to get the project scope to something we could use. Eliminating all second year funding would leave us with no usable ramp space. We were successful and now have a project that will build a ramp to accommodate two of the four planned hangars and a bit more than half of the original ramp space. It will be easy to build the remainder at a later date. The final action on the 16th will be to approve the corrected Change Order. I continued to meet with Shane Crawford of Full Throttle, Inc. He has decided not to conduct the Motorcycle Rally this year, but to plan for the event next year. Time ran out for him to do the quality event he envisioned. The USDA Forest Service build-out has been stalled due to the engineering firm failing to get all signatures on the permit. This should be fixed in the very near future. We met with the Forest Service and the new concept is to construct the floor of the mixing plant so that when additional money becomes available, the building will be constructed over the plant floor. The taxiway signs have been moved to the correct side of the new taxiway by MCE. They made the error and fully covered the cost to fix it. The signs to rename the taxiway are still on order. It will be named Taxiway "G". Fayetteville, our airport and the whole aviation industry lost two great aviators when Bobby Younkin and Jimmy Franklin were lost during an air show in Canada. There was a memorial • gathering hosted by the Arkansas Air Museum that was well attended. Both Bobby and Jimmy will be greatly missed. • ECONOMIC DEVELOPMENT: The Chamber of Commerce Transportation Committee continues to support improvements to the roads, streets and highways of Fayetteville. We have attended several meetings involving the future transportation needs for NWA. Our July meeting featured Gary Dumas, the City Director of Operations. He discussed the bond issue being considered to fund transportation improvements. We continue to meet with the FEDC "work-r-bees" to discuss projects in the City. There are several hot items out there. We showed the industrial park to two different interested parties and processed a request from the AATC for Economic Development assistance. We placed a deposit on a booth space for the ICSC later this fall. Re Submitted, • ay M. Boudreaux, Dctor FAYETTEVILLE MUNICIPAL AIRPORT, DRAKE FIELD TENANT LETTER JULY 2005 Greetings to All: . Included in this letter are several items of interest. We in the Airport Administration Office along with your Airport Board are eager to keep you informed concerning events and activities that might affect you and our airport. Please let us know how we might better serve you, our customer, as we continue to grow FMA Drake as the premiere general aviation airport of Northwest Arkansas. IIangar Waiting List: The waiting list is smaller than it has ever been in the last three years. T Hangar "H" is full and there • are 5 people waiting for twin hangars and 12 waiting for single units. Many of the new tenants that now occupy T Hangar "IT' were tenants in our FBO Hangar. The FBO Hangar is now very near empty. Heated hangars tend to have fewer tenants in the summer so now is the time to get a spot. If you know someone wanting to move to Fayetteville Drake—please give them a call and have them contact Lou. A heated, full service hangar is really nice in the winter. Rewire Project T Hangars A B C & D: We received a good bid and issued a notice to proceed to Lightning Electric Co. The Airport Maintenance staff will be responsible for moving aircraft in and out of the hangars to facilitate the project. Please let us know if you prefer to move your own aircraft. If you wish, you may relocate to the FBO hangar while the project is underway in your building. The project separates the doors, the lights and the receptacles into individual circuits. Explosion proof switches will be installed. New Lights, 2/250 watt low bay fixtures in each bay, will be installed. As soon as the contractor gives us a schedule, we'll get it to you. Progress is sometimes painful but we want to minimize the pain. Please let us know how best to make this progress painless. New FBO: Million Air of Fayetteville will take over the fuel and line service operation September 1 , 2005. Eric Risley from Million Air Houston will be the new manager. The new Customer Service Representative (CSR) is Pam Hash from Fayetteville. She will have a full plate of services to offer including concierge services for your enroute stops and for your destination. She can make all the arrangements for you. A visit with Pam might be a good investment before you take your next trip. Latest information is that Million Air of Fayetteville will remain an Avfuel dealer. • Terminal Building Rehab: The design is well underway with architect Richard Alderman of WDD assimilating ideas from the Airport Board, U of A students of Professor Betty Loewer, airport staff and the folks from Million Air. We hope to advertise for a contract in August so that the upgrade can be done before Football Season ends. The first home games are September 3 and 10. It is possible the work can be completed by the home game October 15. The goal is to make the waiting areas feel more like home. The Airport Board will consider architectural recommendations during the August meeting. If you have recommendations, please stop by the office. Bi-Fold Door Maintenance: The airport has bi-fold doors on all of the T Hangars and several of the commercial hangars. The doors must receive periodic maintenance in order to insure trouble-free operation. Our Maintenance team has started the annual door inspection program for 2005 so you can expect that the inspection will be conducted on all of the hangar doors in the next several months. Should you have difficulty with your hangar door, please call administration and we will contact our maintenance team. After hours call the FBO or Central Dispatch. No luck, call me at 521-7331 (H) or 601-3520 (C). Airport Capital Projects: The new Airport Master Plan is under contract. We will be visioning over the next several months. Your vision of what FMA Drake will look like in 20 years is valuable. Please share your vision with us. The West General Aviation Apron is ready to be awarded and will provide ramp space for more hangars. The FAA threw a wrench in the project last week but we will work through it and build at least the east half of the new parking ramp and the new entrance to the terminal, and finish when we get the balance of the money. One last item for your consideration and possible action: Conducting business activity on the airport without an agreement with the airport is not an equitable practice. Our based businesses pay rent, insurance and other costs pursuant to being based at our airport. Not only is it unfair to compete without being established on the airport as a business, it is also not allowed by our Minimum Standards For Fayetteville Municipal Airport, Drake Field, which were approved by the Airport Board and enacted by Resolution of the City Council. There is no intent to restrict owner activity as permitted under FAA FAR Part 43; we simply wish to promote a level playing field for our based businesses. Thanks for taking the time to look over this Tenant Letter. I will include one in every bill and post a copy in the Pilot Lounge, • at the self serve tank, and at the FBO. As of this writing, you should have received board minutes in your bill for the last three meetings. We in the office would be interested in your comments and how we might make the information best fit your needs. Feedback is very welcome so call, mail, email, write or send through jungle drum, but please let us know your thoughts. Contact us at 718-7642 (0), 718-7646 (F) or rboudreaux@ci.fayetleville.ar.us. TayeV FSO Report TO: Fayetteville Municipal Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson , Financial Coordinator DATE: August 11 , 2005 SUBJECT: FBO Status Update Tower Operations: This graph compares monthly totals of aircraft operations since January 2000. Although cumulative operations for this year are down, the operations count in July is 8.5% greater compared to July in the previous year. Overall cumulative decline in operations compared to the first 7 months of 2004 is -9.8%. OPERATIONS - CUMULATIVE 2000 - 2005 50 4O 132000 M 2001 30 ® 2002 2003 ® 2004 20 O 2005 10 [nd,11 oilO FBO Fuel Sales Charts: An additional chart in this month's report shows a month to month comparison of sales volume from this and previous years. FUEL SALES - CUMULATIVE 2001 - 2005 n 400 - 560 . 2001 0 2002 300 M 2003 250 ® 2004 O 2005 200 150 100 - 50 Wrac -�-" Null 41wh O ,y FUEL SALES - MONTHLY 2001 - 2005 . 2001 02002 6 60 O 2003 E 2004 7 50 0 2005 40 30 - 20 10 - Jim C • Local Prices : Following is a comparison of regional retail fuel prices as of 8/10/05: Regional Jet Center (XNA) Avgas: 3.98 Jet-A: 3.65 Mogas Pinnacle Air (ASG) 3.67 3.60 Beaver Lake (Rogers) 3.68 3.49 Hughes Aviation (Bentonville) 3.50 (SS-3.25) 3. 10 Siloam Springs (City-run) 3. 17 (SS-2.77) 3.26 Fayetteville Municipal 3.67 (SS-3.17) 3.38 2.24 The Graph below illustrates wholesale fuel price fluctuation since January 1 , 2005. Wholesale Fuel Price Trend 50% 45% 40% 'X Chg Jet A % Chg 100LL r 35% \. V 30X n 25% Ole= — c 20% b 15% 19 b d 10% 5% . 0% Week 2005 FYV Fuel Ops Facts: July 2005 fuel sales: 14,299 Jet - 64.3% 7.934 Avgas - 35.7% 22,233 Total Jet-A sold to FYV-based customers in July: 11 ,339 - 79. 3% Jet-A sold to transient aircraft customers in July: 2,960 - 20.7% Avgas FYV- based truck sales in July: 578 - 7.3% Avgas transient aircraft truck sales in July: 21410 - 30.4% Avgas sold to Self-Serve customers in July: 41732 - 59.6% Avgas sold to Drake Aviation: 214 - 2.7% 87 MoGas gallons sold to Self-Serve customers in July: 623.2 s • m o � o m N � 0 E c aa{{ a) W N c00 0 ' O r� Nt a 00) (0 0 (DD r� O ` It tp O tU V 0 7 a cD 0o M O co O N R V 0 0 0 O N O N O M} to co N M O V N N h M -�t N (0 V) N U O cp N MM UD e- '- � . 0 C Q NM 00 qzr Lo 7 (DnNt (D}F co O O 00 1p N N C ) N 1 �U V 0) M (3) M M q, Cn 0 M (D 0) M O o _ ti to ri m rzaovMrui C to 0 O N (p It 001� N LL') .M.. 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Q ; ` � ` = � '0CL0C § # § ` ` ZG # ' ` , � 5Zt :3 = 0 of ¥ Ia ` \ ; | # f - � eeeee * a _ & , � a = = - E � a - = ; k £ ) ! / / - J } / } } [ 3f } (D 0)0 k ( 7 : / a = U / [ ± ` ® ® , ] 2 [ 2 - -a m § ) J ( ( } w ƒ ) ` \ � � � / � � � « 2 _ _ ® _ 4) I - J = o co Y U O ° U v 3 L y y y U U U U O l0 n c 0 O n n � > > > > rn rn > > Lf) n r= I Q N N N • 7 > > 7 O! O) 7 7 LO r r� n I N N N N FE OL � � () N N O O O dZ Co 0 � OQU v m c o W N OO C L y _ N � l6 m N l0 N CO N O • CFZ NCL l0 N t0 l) 00 m o O N City Council Meeting of. September 6, 2005 Agenda Item Number: . CITY COUNCIL AGENDA MEMO TO: Mayor and City Council THRU: Staff/Contract Review Corane Airport Board FROM: Ray M. Boudreaux, Director, Aviation and E ongmic Development DATE: August 11, 2005 SUBJECT: Approve Task Order No. 11 with McClelland Consulting Engineers for detailed Architectural and Engineering design for the phase 1 renovation of the Fayetteville Municipal Airport, Drake Field Terminal Building in the amount of $31,150.00. RECOMMENDATION: Approve Task Order No. 11 to contract #917 with McClelland Consulting Engineers in the amount of $31,150.00 for Architectural and Engineering services related to phase I of the Terminal Building remodeling project. The Airport Board approved this project at their August 11, 2005 meeting. BACKGROUND: Task Order No. 11 employs McClelland Consulting Engineers and Richard Alderman of Whittenberg-Delony Davidson, Inc. architects to engineer and design a . project to remodel the lobby and FBO space of the Airport Terminal Building. The Airport Board included this project in the capital program to remodel the area to look more like an executive airport service center or hotel Lobby rather than a commercial airport lobby. With Million Air accepting a contract to operate the FBO line and fuel services, it makes the project even more appropriate. Million Air of Fayetteville will participate in the project in accordance with their lease agreement. DISCUSSION: This project will remodel the lobby of the airport into an executive style airport service area and will result in the lobby looking more like a hotel lobby. Since the airlines moved to XNA, the number of people in the building reduced with the number of aircraft remaining relatively the same. The difference is the number of passengers-per aircraft. General aviation airports that serve the business passenger are designed to look more like a living room where passengers and crews can wait in comfort. This project will bring the Fayetteville Drake terminal up to the standard and style of the terminals at Springdale, Rogers, and the Regional Airport to attract the business traveler. BUDGET IMPACT: The project is budgeted in the 2005 capital improvement budget. Funds are available. Attachments: Staff Review Form • Aviation and Economic Development Department Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director TASK ORDER NO. 11 PHASE 1 TERMINALIFBO RENOVATIONS FAYETTEVILLE MUNICIPAL AIRPORT STATE OF ARKANSAS COUNTY OF WASHINGTON This Task Order is written pursuant to the basic agreement entitled CITY OF FAYETTEVILLE, AGREEMENT FOR ENGINEERING SERVICES , executed on May 6, 2003, as amended . The referenced basic agreement pertains to proposed improvements to Drake Field , Fayetteville's Municipal Airport. This Task Order entered into and executed on the date indicated below the signature block, by and between the City of Fayetteville and McClelland Consulting Engineers sets forth the project description , project schedule, and engineering and architectural fees related to the preparation of Construction Documents for the Phase 1 of the Terminal/FBO Building Renovation at Fayetteville Municipal Airport, Drake Field . Our Architectural Consultant Wittenberg-Delony Davidson, Inc. from their Fayetteville office will perform this task. SECTION I - PROJECT DESCRIPTION The project is to consist of: assistance in applying for state funding for the project; Detailed Architectural and Engineering Design for the Phase 1 Renovation of the Terminal\FBO Building ; final cost estimates; meetings with the Airport Management and Airport Advisory Board to review the desired renovations; and Architectural Services . associated with the Construction Administration for this project. J1DRAKE REMCONTRACTS\2003.20067ask Order 11 .doc 1 • SECTION II - PROJECT SCHEDULE From the time the City of Fayetteville issues the Notice To Proceed (NTP), McClelland Consulting Engineers through its Consultant will endeavor to execute the project construction documents within a four (4) week time period , as expeditiously as possible, to enable the City of Fayetteville to solicit competitive bids for construction as soon as possible. SECTION III - SCOPE OF SERVICES MCE through its Consultant shall , generally, provide those services listed in the basic agreement which are applicable to this specific Task Order. Specifically, this project is likely to include: A. Assisting the City of Fayetteville in making application for a grant from the Arkansas Department of Aeronautics. B. Development of Final Construction Documents and Cost Estimates for the following areas: FBO New Carpet and Flooring Entry Desk and Display Wall Millwork Flight Line Desk Weather Info Area New Room Finishes for: Media Room, . 2 Offices, & Reading Room Misc. Wall Finishes Toilets (South) Counter Tops Showers Restaurant • New Wall at Kitchen Windows & Doors at Patio Selective Demolition JADRAKE FIELD\CONTRACTS\2003-2000Task Order 1 t .doc 2 • C. Meeting with the Airport Management and their Tenants to discuss design criteria, desired features, and schedule. D. Construction Administration and Periodic Inspections of the work. E . Providing a set of 'Record Drawings' at the completion of construction based upon the Contractor's mark-ups. F. Reproduction Cost for drawing sets. SECTION IV - FEES AND PAYMENTS The following fees are to be paid to MCE as compensation for his services: A. Project Coordination: Lump Sum $ 850. B . Construction Documents, Bidding , & Const. Admin: Lump Sum $ 26,750. • C. Preparation of "Record Drawings": hourly rates estimated to be $ 550. D. Reproduction Costs: Actual Cost Not to Exceed $ 3000. Appendix "A" presents hourly rates for personnel anticipated to be assigned to this project as well as the basis of payments to be made to MCE. • JADRAKE FIRMCONTRACTS\2003-2006\Task Order 11 .doc 3 l • SECTION V - BASIC AGREEMENT IN EFFECT: Except as amended specifically herein, the basic AGREEMENT FOR ENGINEERING SERVICES shall remain in full force as originally approved and executed . IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be duly executed as of the date and year first herein written . FOR THE CITY OF FAYETTEVILLE: By: Mayor • Attest: Date: FOR McCLELLAND CONSULTING EN NEERS, INC. : V' e r ' ent Attest: G �� i JADRAKE FIELMONTRACTS\2003-2006\Task Order 11 .doc 4 i APPENDIX A TASK ORDER NO, 11 Hourly Rates for Personnel Fayetteville Municipal Airport CATEGORY BILLABLE HOURLY RATE RANGE Project Director $125 to $150 Project Manager $90 to $ 120 Project Engineer $75 to $90 Design Engineer II $65 to $75 Principal Architect $130 to $165 • Project Architect $100 to $ 125 Associate Architect $90 to $110 Architect $80 to $95 Intern Architect $60 to $75 Construction Coordinator $75 to $95 Computer Technician $45 to $60 Clerical Support $45 to $65 CADD Technician III $55 to $65 CADD Technician II $45 to $55 CADD Technician 1 $35 to $45 • JADRAKE FIELD\CONTRACTS\2003-2006\APPENDIX A TO 11 .DOC City Council Meeting of: September 6, 2005 Agenda Item Number: CITY COUNCIL AGENDA MEMO TO: Mayor and City Council THRU: Staff/Contract Review Committee Airport Board FROM: Ray M. Boudreaux, Director, Aviatio3cono evelopment DATE: August 4, 2005 SUBJECT: Amend Resolution # 155-05 RECOMMENDATION: Approve an Amendment to the Fayetteville City Council Resolution #155-05, revising the approved Change Order #1 amount to the Contract with APAC Arkansas, Inc., McClinton Anchor Division. BACKGROUND: The West Side General Aviation Apron was designed and bid IAW direction from the FAA that the project had support for funding in FY 2005 and FY 2006 for the full amount of $ 1 , 165,206.00 Federal and State money. The project was approved by the Council at their August 2, 2005 meeting. At the same meeting, a change order for $486,923 .00 was approved after late notice from the FAA that the second year funding was withdrawn due to uncertainty with the pending transportation bill. Following the notice from the FAA and the August 2, 2005 Council meeting we met with the contractor . and negotiated a scaled down project that would still provide additional ramp and space for two new lots for hangar development. We presented the information to the FAA and they approved the scaled down project and the total construction of $886,724. 15, a reduction of $278,481 .85 to the original contract. DISCUSSION: This project is essential to the continued growth of Fayetteville Municipal Airport. It expands the aircraft parking area on the West side of the runway and additionally provides two lots for future hangar development. BUDGET IMPACT: The project is fully funded by FAA and the State Department of Aeronautics. Additional revenue can be expected in the form of land rent for hangar construction and additional parking ramp for transient aircraft. Attachments: Staff Review Form Resolution 155-05 Change Order #1 /4/ originals Copy of Contract with APAC Aviation and Economic Development Department • Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director Analyzing the Economic Impact to the City of Fayetteville from Operations and Capital Improvements at Drake Field SAM A LTON UNIVERSITY COLLEGE 4 BUSINESS qAM ANSAS Center for Business and Economic Research Center for Business and Economic Research Reynolds Center Building 217 Sam M. Walton College of Business 1 University of Arkansas Fayetteville, Arkansas 72701 - 1201 (479) 575-4151 Contact: Dr. Jeffery T. Collins, Director July 2005 • • Table of Contents Tableof Contents ..... .... ....... .... . . . .... ............. .. ......... .. ......... ............. .... .... ..... ............... .. ...... . 2 Listof Tables ... .. .... . .... . . ........... .... .......... .. . ............ ......... ............... ........ .... ..... .. ...... ............. 2 ExecutiveSummary ......... .... .... .. ..... .. .. ........ .. ... ........ . . ....... ........ ................... ....... ........ ....... . 3 Introduction... ...... . .... ...... ..... ...... ......... ............... ...... ... ...... . .......... .... ..... .... .... .. . ............... ..... 4 BackgroundInformation .... .... .. . .... ............. .. ........... ...... ... ........ ........... .... ..... ...... ....... .... . . .. .. 4 RelatedStudies. .. .... ..... . . .... ........... ............ ............. ......... ............... ..................... ...... .. ......... 8 Monterey, San Benito, and Santa Cruz Counties Study (2003)........ ..... ...... ...... ............. 8 Athens-Ben Epps Airport Study (2003)..... .. ......... .. ...... ..... .... ...... ......... .... . . ...... .............. 8 Drake Field Economic Impact Study ( 1997) ...... . ......... ........ ..... ........................ ........... . . 8 StudyMethodology.. .... ........... ...... ............. .. ........... .. ...... ............... ......... ...... ....... .............. . 9 Results . .. ...... ........... ...... . ............... . . .......................... ......... ........ ............... . .... .. ...... . ....... .... 10 EmploymentImpact Results . . ...... .. . ............ ... .. ........ ....... .... .... . ...... ......... ........ ......... .. .. . 10 OutputImpact Results...... .... ......... ............... .. ......... ................. ........... ..... ...... ........... .. .. 13 LocalTax Implications .. ............. ........... .. .. ........... ........ .... ..... .. .... .... ..... .............. ... ....... 18 Conclusions . ...... ........... .......... . ...... ........... .. .. .......... ... ...... ...... .... . ...... .... ........... .................. 19 List of Tables • Table 1 : Direct Employment at Drake Field, Associated Businesses, and Construction .. 7 Table 2: Employment impacts of Drake Field using the IMPLAN model (2004) .......... 11 Table 3 : Economic output impacts of Drake Field using the IMPLAN model (2004). .. . 14 • 2 Executive Summary The change of Fayetteville Drake Field from a commercial airport to a general aviation airport has meant a change in the facility's economic impact on the City of Fayetteville, Washington County, and Northwest Arkansas. A 1997 economic impact study of the airport estimated the economic contribution of Drake Field at $43,275,000. Even with the loss of commercial flights to Northwest Arkansas Regional Airport in Highfill, Drake Field still has a substantial economic impact as a general aviation airport. As a general aviation airport, Drake Field serves business and recreational air traffic. In 2004, Drake Field had 45,237 flight operations and sold 371 ,361 gallons of fuel. The airport is vital for business travelers coming to Fayetteville who want to decrease productivity losses that are associated with flying on commercial airlines and with the more than 30 minute drive from Northwest Arkansas Regional Airport to Fayetteville. Additionally, some of the highest demand times for the airport occur during University of Arkansas Razorback sporting events. In 2004, there were 120 airplanes at Drake Field during the University of Arkansas/University of Texas football game. The airport also serves as a place where public charters, aerial photography services, and flight training occur. • Drake Field is also the home of a number of small for-profit and not-for-profit businesses. Aviation training and education facilities, a military museum, an air museum, avionics installation and repair services, a restaurant, and a hair salon are all located on the airport premises. The existence of these businesses is directly tied to the operation of Drake Field as a viable general aviation airport. This study uses the IMPLAN input-output model to estimate the 2004-2005 local economic impact of Drake Field. The IMPLAN model uses inter-industry relationships to estimate the indirect and induced effects of local employment. The results of the estimation show that the operation of Drake Field: • Was directly responsible for $10,845,589 of economic activity in 2004; • Had indirect and induced economic output of $2,963,727 and $3,338,884; and • Accounted for total economic activity of $17,038,201 in Washington County. In terms of jobs, the operation of Drake Field: • Caused the direct employment of 95.2 people; • Created indirect and induced employment of an additional 34.7 and 40.4 people; and • Produced a total of 170.3 jobs in Washington County in 2004. This economic activity resulted from day-to-day operations of Drake Field and its associated businesses as well as from one-time construction projects. 3 Introduction In 1997, an economic impact study of Drake Field airport was produced that estimated the economic contribution of Drake Field to the City of Fayetteville in 1995 was $43,275,000. Since that time, important changes in the usage of Drake Field have occurred. In 1998, commercial service began at the Northwest Arkansas Regional Airport (XNA) and subsequently ended at Drake Field. While the Northwest Arkansas region reaps the benefits of increased commercial flights, the City of Fayetteville is no longer the primary beneficiary of the associated economic activity. In 2005, Drake Field functions as a general aviation airport. There are a variety of businesses both located at the airport and dependant on the operation of the airport for revenues. Additionally, Drake Field serves as an important gateway into the City of Fayetteville for those who require a more direct connection to the city than XNA allows. Operations at Drake Field and its associated businesses, combined with capital improvement projects at the facility have a real and substantial economic impact on the local economy. This study attempts to quantify the direct, indirect, and induced economic effects associated with Drake Field in order to improve the understanding of the airport's impact on Fayetteville and Washington County. • Background Information Drake Field is a general aviation airport in Northwest Arkansas, located three miles south of the town center in Fayetteville. It was established in 1936 in honor of Noah Drake, who donated $3 ,500 to purchase the land that was used to construct an airport for Fayetteville. Today Drake Field has a 6,006 foot long and 100 foot wide runway. As a general aviation airport, Drake Field serves a spectrum of aircraft uses from privately-owned light single-engine aircraft to business jets to emergency aircraft to cargo and delivery services. There are numerous public and private structures located on the Drake Field airport property. One fixed base operator (FBO), one maintenance hangar, three corporate hangars, an aviation technologies school, and the Arkansas Air Museum hangar are located on the west side. Seven T hangar buildings, a pilot lounge with restrooms, and the air traffic control tower are on the east side of the airport An 18,750 square foot multipurpose hangar, a new executive ramp area, and an eight unit twin size T hangar have been constructed recently. There are more than 80 aircraft based at Fayetteville Drake, many of which are located in the T hangars. Others are corporate style, cabin class aircraft. General aviation airports like Drake Field have a significant impact on the national economy. According to a 2002 study conducted by DRI-WEFA, in 2000 the total impact of civil aviation exceeded $900 billion and 1 I million jobs, representing nine percent of the U.S. gross domestic product (GDP). This economic contribution is split as 88 percent 4 commercial aviation and 12 percent general aviation. So, general aviation airports contribute over $ 108 billion and 1 .32 million jobs to the national economy. When estimating the economic impact of Drake Field, the importance of unquantifiabler aspects of the airport to the local community should not be overlooked. This economic, impact study determines how the airport benefits the economy of Washington County not only quantitatively, but also qualitatively. Drake Field contributes to the community by providing an easy, fast alternative gateway into Fayetteville. Most corporations would never locate a plant, headquarters, or distribution center in a community/ty�hout a nearby airport. According to National Business Aviation Association statistic's,-the popularity of business aircraft has increased as more companies realize the efficiency and productivity of this powerful business tool. The number of companies operating business aircraft in the United States has grown more than 60 percent from 6,584 companies operating 9,504 aircraft in 1991 to 10,661 companies operating 15,879 aircraft in 2003 . After the events of September 11 , 2001 it became much more convenient for many businesses to use general aviation rather than commercial transportation. Corporate/executive and business aircraft operators have compiled the best safety records of any segment of general aviation. Drake Field is favorably located for business as well as personal use; the airfield is located close to the city center of Fayetteville, so driving times are lessened and traffic delays are mitigated. Businesses are also able to avoid the long procedure of registration • at the airport, which saves time as well. These and any other advantages of the airport help attract businesses to the area, create working places, increase the inflow of revenues to the local economy, and raise the standard of living of the population. Another economic advantage of Drake Field is that many of its construction expenses are covered by state and federal public fund grants and this brings new money into the community, making improving the airport a civic bargain. The quantitative economic value of the Fayetteville Municipal Airport is measured in terms of the employment, economic output, and the local taxes Drake Field and associated businesses produce. Activities at Drake Field Having a sense of the impact of general aviation on the national economy can directly inform the local economic impact analysis of Drake Field. First to be considered are the revenue drivers at Drake Field and its associated businesses. The local airport leases hangars for the purpose of aircraft storage. Most of the tenants have flying aircraft in their hangars and utilize them for business and pleasure. The sources of profit of the airport are mostly rents and leases and fuel sales, both to Drake Field tenants and to transient aircraft customers. In 2005, increasing oil prices has lessened the traffic at the airport over 2004 levels, but fuel sales have gone up. For the first six months of 2005, fuel sales have increased over the same time last year, though operations have declined almost 13 percent. For the year 2004 the total operating revenues were $ 1 ,225,862, from which $374,643 was revenue from rents and leases, $802,711 was revenue from aviation fuel 5 • sales, $ 15, 110 was reimbursement from FEMA, and $33,398 was miscellaneous revenue. There were estimated fuel sales of 371 ,361 gallons in 2004, while the total number of operations for the same year was 45,237. Based on recent levels of operations at the airport, the Federal Aviation Administration will provide 91 percent of the cost of the air traffic control tower that serves Drake Field for the next two years. There are different kinds of activities held at the airport, including recreational flying and parachuting, career training, flight training, corporate/business activity, creating gateway for VIPs, aerial photography, police/law enforcement, air shows, and public charters. Shipping of perishable goods, freight, and cargo activity are also held at the airport from time to time. Two museums are on the Drake Field property: the Arkansas Air Museum and the Ozark Military Museum. An air show is held annually, which draws in visitors from the region. Additionally, there are charter airlines and aircraft maintenance companies headquartered at Drake Field. Employment at Drake Field In 2004, there were approximately 100 full-time equivalent jobs associated with Drake Field. Table I shows the diversity of industries that supported this employment and the number of employees in each business. The City of Fayetteville employed a small staff to operate the city airport, including three persons in administration, three in maintenance, and three in flight operations. Construction at the airport supported an additional 25 jobs . in 2004. The remaining jobs are associated with small business, either located on the grounds of Drake Field or that directly support the airport. These employment numbers serve as the inputs into the IMPLAN economic impact model that will estimate the total effect of Drake Field on the local economy. • 6 • Table 1 : Direct Employment at Drake Field Associated Businesses and Construction Fill-time Part-time Business Name Business Type Employees Employees A ' ort Administration Administration 3 Airport Support Support 6 APAC Arkansas - -Construction 20 ARAB Pest Control Office-pest control 3 3 Arch Construction Construction 5 Arkansas Air Museum Air museum 4 Aviation Maintenance Professionals (AMP Aircraft maintenance , 2 1 Clarion Catering Food services 1 Duncan and Associates Investiation 1 Executive Aviation Services Charter 6 ,FAA Air Traffic Control Tower Air traffic control 3 2 FAA Airways Facilities Federal government 4 Fa etteville Fire Department. Fire de artment I . , 5 FI ing Investments Falcon modification-maintenance 10 Hertz Local Edition Automobile:rental _ 1 Northwest Arkansas Technology Eenter Aircraft and blot training center 4 4 Ozark Military Museum ' MiIitary museumT i Phoenix Rising Aircraft maintenance 2 3 Photographic Operator Photo ra hic Services 1 AM Plane Good Restaurant Food services 3 2 Ross Executive Aviation, Inc Flvin instruction 2' Superior Industries International, Inc. Corporate hangar 1 1 Terminal Hair SalonI Personal services T University of Arkansas Aviation Department University of Arkansas planes/hangar 2 United States Postal Service SPS Postal services It 1 1 1 Win s Avionics Inc. Avionics maintenance 4 XLT Mark n-I Inc , ,Advertising and 'marketing 1 Total 66 49 Sources: Drake Field staff, CBER staff inquiries