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HomeMy WebLinkAbout2006-10-11 Minutes• MINUTES OF FAYETTEVILLE AIRPORT BOARD MEETING October 11, 2006 MEMBERS PRESENT: Bob Nickle, David Hollman, Janice Stanesic, David Bowman, Richard Greene MEMBERS ABSENT: Vaughn DeCoster, Otto Loewer STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Charles Heathco-tenant, Thea Daniel -citizen, Terry Collier - citizen, Wayne Jones -McClelland Engineers, Kathy Moore-SkyVenture Aviation, Tyron Rogers -Government TV Channel, Kalea Rogers -citizen, Cherie Boudreaux -citizen ITEM #1: Welcome and Agenda Review — Chairman Bob Nickle. Chairman welcomed all attending the meeting. A. Comments from the public on items on the agenda. None. ITEM #2: Presentation of award to the Airport Board: Arkansas Department of Aeronautics and Arkansas Airport Operators Association "Airport of the Year 2006". Director Boudreaux made the presentation to the Board, reading the letter from • John Knight, Director of Arkansas Department of Aeronautics. ITEM #3: Minutes of the September 13, 2006 meeting. A motion to approve the minutes was made by Dave Bowman and seconded by Richard Greene. The motion carried. the community. The PAPPI construction ITEM #4: Receiving of Reports. A. Bob Nickle, Chairman. Chairman Nickle noted a motion would be required to remove the "self—serve fuel formula change" from being Tabled. B. Ray Boudreaux, Director. Reviewed the Quarterly Report for the City. Last month we were the third busiest airport in the state for operations, Little Rock, XNA, then us. Reported the fuel sales at the end of the third quarter were more than all of last year. Spoke of the Forest Service and said when they use the P-2 Neptune aircraft they will have to load fuel off fuel tankers to be able to take on enough fuel. The FAA will hold another Safety Seminar at the terminal on November 28`n. The Master Plan has been submitted to the FAA. Ride -n -Boogie didn't do as well as expected and expected Shane Crawford here to report on the event. Answering Chairman Nickle, Director Boudreaux said we kept the cleanup deposit, we had to run the sweeper two days. The rejuvaseal on the parking lot will start around November I". AATC (A & P tech training) has moved out of their building and relocated to the former West Campus location. Several Board members took a tour of the building to look and we will decide on the re -use of the building. Reported the Economic Impact of this airport is $34,043,600, direct and in- • direct to the community. The PAPPI construction will be begin tomorrow and will take • about three weeks, and then the FAA will take about three additional weeks before it becomes operational. C. James Nicholson, Financial Coordinator. The operations are still on the increase. This September was the best in the last six years. Director Boudreaux reported Don Hams, our FAA Project Manager, reviewed the TAFT update and our activity level for the fiscal year has exceeded expectations. Next year the FAA will review the Cost Benefit Analysis for the tower cost. J. Nicholson said Million Air has shown growth in fuel sales. Speaking of the financial report, he said revenues reflect that Million Air is behind on remittance of their fuel flowage fees: Rents and Leases includes AATC leaving the field, but it doesn't include rent increases. Personnel expense changes from month to month because of the way payroll falls. Fuel and financial charts were shown on the screen. D. Louise Powers, T -Hangar Report. Said one Twin unit is available and another will be empty next month. We just filled a Single unit. There are four names on the Single waiting list, seven on the Twin list, and ten on the Storage list. E. Construction Report. Director Boudreaux expressed appreciation the lunch McClelland Engineers had cooked out for the Airport Staff, Board Members and terminal tenants. W. Jones reported the west apron is finished, but the re -seeding is an issue. Final inspection will be scheduled. We are running about approximately $10,000 under. The Master Plan was submitted to the FAA last week. There are seven sheets of drawing in production waiting on information of land purchases by FAA grants. We are working on the design for two hangars. Director Boudreaux reminded Wayne that all construction • and payments must be made by the end of June 2007 for those to hangars, state grant money is involved. F. Maintenance Report. Director Boudreaux reported a lot of work went into getting ready for the FAA Annual Inspection. Leon was on vacation, and whenever the inspector found some problems the maintenance guys were Johnny -on -the -spot. This is the second year that the beacon was working the day before the inspection, but not working the day of the inspection. The Fire Department will have to schedule a live fire training in Fort Smith for all the fire fighters that respond to the airport calls. It will cost about $20,000 for the trip expense, training and foam. The training will be on overtime. More inspection and training documentation is now required by FAA Part 139 Airports. We want to keep our 139 Certificate so we may continue our partnership with the U. of A., to support aircraft with thirty seats or more for teams and support groups. ITEM #5: Old Business. A. Lease for terminal rental space with "Rose of Sharon". Director Boudreaux recommended the abatement of rent for no more than one year and she will make some permanent improvements to the rental space. "Rose of Sharon" is an event florist. Thea Daniels, owner of "Rose of Sharon", explained it would fill dead space in the terminal and rent would be coming in after a year. Chairman Nickle said commercial landlords don't make these types of concessions. If it were an aviation related business he could see abating some rent, he didn't think this was appropriate; it is a lost opportunity, no income for a period of time. R. Greene said we are in a transition period and the airport is beginning to be a place people come to for something other than getting on a plane, we • have a dress shop. Stated he saw a benefit having someone in there, having empty space 2 li • filled; even if is by appointment only, if her shop was retail it would be in a mall. Board discussion followed. A motion was made by Richard Greene to approve a lease with Rose of Sharon for twelve month rent abatement to off -set her expenses to set up her terminal office; abatement procedure will abate up to 50% of her out of pocket expenses for rental improvements up to the amount of one year's rent; if her improvements are less than twelve months rent, then abatement will be 50% of the improvements; after twelve months a thirty day cancellation notice will be required. The motion was seconded by Dave Bowman. Board discussion followed. The motion carried with four votes for, David Hollman, Richard Greene, Janesic Stanesic and Dave Bowman; and one vote opposed, Bob Nickle. B. Presentation: Ride -n -Boogie. Director Boudreaux reported Shane Crawford was not there to make the presentation, and would recommend if Shane does come before the Board to make a request for another bike event, to charge more than $5,000.00 rent. C. Self -Serve Fuel Formula change. • A motion was made by David Hollman to take the item off Table and was seconded by Dave Bowman. The motion carried. Director Boudreaux asked to change the formula from a six cent profit margin to fifteen cents. A motion to approve the request was made by David Hollman and seconded by Janice Stanesic. The motion carried. Chairman Nickle suggested discussing changing the MoGas self -serve tank to an AvGas tank at a Strategic Planning Meeting. ITEM #6: New Business. A. Hangar Ground Lease with Live Oak Development. Director Boudreaux explained that Live Oak Development representatives were not at the meeting. Live Oak is an Arkansas development business doing business in Benton County and has several planes, a Cirrus, a King Air 200 and a Jet Citation 10. W. Jones said they are also moving another aircraft in from Colorado. Board discussion followed regarding the amount to charge for ground rent. Director Boudreaux asked the Live Oak Lease be tabled until the next meeting, but to proceed with the ground lease for Woolsey Aviation, as their request had been presented to the Airport some time ago. B. Hangar Ground Lease with Woolsey Aviation. Director Boudreaux stated they • plan for a corporate style hangar with office space for the aircraft owner. Wayne 3 • Woolsey, brother to Roger Woolsey/Million Air, is their pilot and has put together conceptual layouts. The owners are in Dallas today. A motion to approve the ground lease at ten cents per square foot was made by Richard Greene, and seconded by Dave Hollman. Chairman Nickle said a ground lease gives the Airport very little rent, but would have fuel sales and operations. Director Boudreaux said he had conducted an area survey and our last ground lease was at five cents and he had increased this lease to ten cents. He explained the previous ground leases did have built in multipliers. R. Greene said in Springdale, people can own their own hangars, off the airport property, but paid $1,600.00 annually for access to the airport. He said the Board is charged to do the best they can for the Airport. Board discussion followed on increasing the ground rent to twenty cents instead of ten. Director Boudreaux said the clients knew the proposal had to go before the Board, and knew it had been increased from five cents to ten cents. R. Greene withdrew the motion to approve the ground lease at ten cents for the Woolsey lease. A motion to approve the ground lease for Woolsey Aviation, but changing the ground rent to twenty cents per square foot, was made by David Hollman and seconded by Richard Greene. The motion carried. • Chairman Nickle asked for discussion at the Strategic Planning Meeting whether to continue issuing ground leases, and if we do, then by what procedure. Vote was called to Table the Live Oak Development ground lease until the next Board Meeting, and the vote carried. ITEM #7: Other Business. A. Items from the public. Director Boudreaux answering C. Heathco, said the dismantled aircraft should be gone from the airport by the end of the week. B. Items from the Airport Board. Director Boudreaux stated that Terry Ciganek had been hired as the new Line Manager at Million Air. MEETING ADJOURNED AT 3:25 p.m. • 2 Date