HomeMy WebLinkAbout2007-10-17 - Agendas - Final AGENDA
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FAYETTEVILLE MUNICIPAL AIRPORT, DRAKE.F a�1 '
• Meeting of the Airport Board �c
1 :30 pm, Wednesday, $ . , 2007
Airport Terminal Conference Room
1 . Welcome — Chairman Bob Nickle.
A. Please turn off all cell phones.
B. Comments from the public on items on the agenda.
2. Minutes of the September 12, 2007 meeting.
3 . Receiving of Reports.
A. Chairman Nickle.
B. Director Boudreaux report on airport activity.
C. Financial Coordinator Nicholson report on budget and FBO.
D. Senior Secretary Powers report on T-Hangar Leases.
E. Engineer Wayne Jones' report on construction projects.
F. Director Boudreaux report on maintenance activity.
G. Report on Snowbird Event.
4. Old Business. None.
• 5. New Business.
A. Ground Lease with Bayyari Construction, Inc. to lease ground for a hangar.
Action required: Approval and forward through City's Contract Review.
B. Letter from Senator Mark Pryor.
6. Other Business.
A. Items from the Public.
B. Items from the Airport Board.
7. Meeting Adjourned.
Note: Next Strategic Planning Meeting
Next Airport Board Meeting November 17, 2007
•
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A R KA N S AS AVIATION 8 ECONOMIC DEVELOPMENT
FAYETTEVILLE MUNICIPAL AIRPORT • DRAKE FIELD
QUARTERLY REPORT THIRD QUARTER CY2007
AVIATION AND ECONOMIC DEVELOPMENT DEPARTMENT
FAYETTEVILLE, ARKANSAS October 8, 2007
AVIATION:
• Operations for 2007 remain well below last year and thus our growth trend for the last 5 years has
come to an end. Sales for the quarter were also down but Million Air continues to bring the
transient traffic in and their sales are well above any when the City operated the fuel sales FBO.
The Airport Board met in Strategic Planning Session and the consensus was to wait out the
slowdown. Comparatively, the other airports in the area remain down as well.
• Walker Properties changed their mind and decided not to build a hangar for their aircraft opting to
lease space from Million Air in the FBO Hangar. We terminated their land lease. Another
individual has expressed interest in leasing land to build a hangar and we are negotiating the terms.
• We are still working the closeout of the Corporate Hangar project. We have given the Contractor
a final punch list and he is working to make the repairs. We need to close out the project so that
• we can draw the State money but we are unwilling to pay the contractor until we are satisfied with
the repairs. We have been granted beneficial occupancy and both tenants are in the buildings and
paying rent.
• The Canadian Forces Snowbirds show was terrific! Unfortunately, the show was on a Wednesday
afternoon so many who would otherwise attend were still at work. Preliminary estimates are that
between 1200 and 1500 attended. Attendance was also affected by rain in the morning. Net profit
is still being computed but should be around $ 10,000.00 for the museums to split.
• The Runway End Obstruction Survey project is well underway. The State Department of
Aeronautics approved a grant to complete the project at $45,000.00. The funding is pass-thru
money from the FAA for Runway End Survey Projects. This project is the first step in getting the
North End Runway Safety Area Improvement Project underway.
• The City Council approved our request for funding from the Arkansas Department of Aeronautics
for a 100% grant to pay for new runway and taxiway markings. The Aeronautics Commission
approved our request at their September meeting held during the AAOA Conference. The marking
deficiency was written up during the Annual FAA Certification Inspection. We replaced sixteen
runway and taxiway signs also written up as faded. We will replace approximately fifteen more
after the first of the year. We have until November 1 to get the work done.
• We awarded a project to clean and paint the floor in the FBO Hangar. The contractor that did the
floors in the Corporate Hangar Project was the successful bidder. The work was completed in
record time with only minor repairs to be done. The paint is guaranteed for five years. The new
surface will allow the users to easily keep the floor clean and presentable.
• City Council approved the Airport DBE program goals for the 2008 grant year. DBE program
goals are required if you expect to receive more than $250,000 in Federal Grant funding.
•
1
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/government/aviation
airport_economic_development@ci.fayetteville.ar.us
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ECONOMIC DEVELOPMENT: •
• The Local Redevelopment Authority, Susan Thomas, Steve Rust and Ray continued to support the
transfer of the Leroy Pond property to the VA to serve the citizen veterans of Fayetteville and
Northwest Arkansas. We have requested an extension for preparation of our redevelopment plan.
• We met with the Greenland Mayor, John Gray and had a very good conversation concerning the
development around the airport and how Fayetteville might cooperate in the future. There will be
additional meetings in the future.
• FEDC held their annual meeting in August. The guest speaker was Maria Haley, Director of
Arkansas Economic Development Commission. She preached the gospel of economic
development and how important is the relationship between education and economic development.
She talked a little about the Governor's incentive fund and how it might be used to lure large job
creating business and industry and encouraged us to develop a similar fund for Fayetteville. Dan
Sanker, President of Case Stack, spoke about his decision to move to Fayetteville and his venture
capital firm starting up in Fayetteville.
• Steve Rust of the FEDC toured the Lt. Governor around the airport while we were out. The Lt.
Governor was here for a day of familiarization in Fayetteville. FEDC the Chamber, U of A and the
City of Fayetteville had an opportunity to brief the Lt. Governor.
• We received the RSA determination from the FAA with Kelvin Solco and Ed Agnew signatures.
This is major as when we checked on the status of this new determination, we were told that the
FAA could not make a new determination until something had changed. This is thanks to all who
attended the day trip to Dallas and to Don Hams, our project manager who made it happen for us.
Thanks much!
• The Smith Two Way cell tower Lease was approved by the Council. The Planning Commission •
must still approve the Conditional Use. The tower location is in the South end of the Industrial
Park just inside the City Limits.
• Steve Rust conducted two in a series of meetings with the City Council explaining Economic
Development and the City participation to the Council members. Several other meetings are
scheduled.
Respectfully Submitted,
Ray M. Boudreaux, Direc r
•
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ARKANSAS
dMirport Progress Report
TO: Fayetteville Municipal Airport Board
THRU: Ray M. Boudreaux, Director
FROM: James Nicholson, Financial Coordinator
DATE: October 17, 2007
Tower Operations:
OPERATIONS - MONTHLY 2000 - 2007
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JAN FEB MAR APR MAV JUN JUL AUG SEP OCT NOV DEC
02000 t266 1735 1881 184 1472 2$61 1858 2.81 2.132 1.231 2.92 1478
• 02001 2.333 2,330 2.221 2,834 2,801 4283 3,618 3,]47 2,3]7 2.282 2060
02001 1.85 2266 238 2¢82 2004 3,d87 2264 2,820 39 3.15878 3.88 3$81 2030
02003 3,II2 2078 2.208 3000 3,39 5078 4,347 3971 4,278 1,587 3.061 3.267
02001 3.413 3.888 4270 4.270 1,325 6,34 4123 3.285 3928 7,788 2.88 1.720
02003 2,282 1,702 3.84 3.205 4,881 8.086 4.283 4968 4086 4.682 3.677 3.271
X2008 3.932 2Att 306/ 32W 1,8] B.B31 638 6$80 4.361 2907 2,738 2367
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2.375 1.785 3.216 3,98 3,65 3,87 3.201 3,688 3388
OPERATION5 - CUMULATIVE 2000 - 2007
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JAN FEB MAR APR � MAY JUN JUL AUG ' SEP OCT NOV DEC
0000 1366 3,001 4,882BIBS ].787 6,08 71578 11,027 8,88 8,18 20382 2%781
02004 2,336 1986 7906 8,80 13911 9334 20.283 24924 27.001 29,777 32353 31 32,601
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02001 2,83 M21 8936 5,BB 11222 N,709 8,973 8983 23.221 28.289 29.877
02003 3.42 5)501 8,409 81789 so" 20A84 2/08 28,485 32,764 37,33 40
10,340 42.508 5237
02001 3A43 7,87 tUD1 E9T1 20288 22,32'A 28905 309 3 350 0 38.721 43366 48,772
• 02005 2382 4.884 8.068 1%573 825413}M2 15.781 18.242
■2008 3.932 6,743 9,7B4 8,091 M�70 9780 0,7001 ZIA53
02007 2,376 6,60 8208 1%381
• FBO Fuel Sales Charts:
FUEL SALES - MONTHLY 2001 - 2007
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
■2001 1426 9.157 9,815 9,205 9,530 9,530 9,530 5,807 20A93 25.1Q 22.382 26258
02002 29,321 26284 11408 23.949 11492 4154 9.285 20A00 38.385 29.447 24,570 2189
02003 31522 28A64 34.128 30.293 27.200 32,305 21885 30,298 27,492 5%528 25292 28,792
02004 38,813 28437 28,99 35484 29,59 28,98 21234 31334 43,730 36.91 22490 30.033
02005 42036 29,563 32,98 28253 28,10 36,98 22233 28,466 33,97 4SA37 38255 3%298
02006 4194 39099 50,869 38,505 58253 61495 33,797 41490 53,338 17,98 52092 40281
02007 4%704 39,883 W71 48.944 43,850 37052 32,704 37085 50.705 -
FUEL 5ALE5 - CUMULATIVE 2001 - 2007
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
®2001 9,028 28,485 47,300 68,585 77,16 87,545 98,95 10,782 134.275 99,387 11749 208.015
02002 29,321 55.805 70,511 94,460 119,352 90,884 99,149 19,549 228014 258.381 282031 304,547
02003 31522 59.988 94,1% 91,107 91807 13012 205.577 235,875 283,387 314,895 340,17 356079
02004 38,843 65.480 93,589 128,873 18,13 18,359 207593 238027 282,657 39038 311328 371381
o2005 42036 72,499 114,877 132030 91043 97231 29,464 247030 28%97 327044 366.99 397A97
02008 4194 81033 91902 90,407 22SAW 290,95 323052 365,442 41.780 18.5078 51BA88 559.%8
■ 2007 4t70.4 Bt387 02AM 99582 223232 281081 293,788 33t773 382479 - -
Survey of Fuel Prices: Fuel prices within 50 miles of FYV as of 10/16/2007
Ident FBO Name Jet FS 10OLL FS 100LL SS 87 MoGas
TQH City of Tahlequah (both seffsery) 3.69 3.89
SLG City of Siloam Springs 4 .40 4 .50 3.99
FSM TAC Air 4 .81 4 .70 4 . 15
• VBT Summit Aviation 4 .30 4 .45 4 .20
FYV Million Air Fayetteville 1 City SS 4 .64 4 .59 4 .26 3 .49
ASG Pinnacle Air Services 4 .38 4 .44 4 .28
ROG Beaver Lake AYlatlon 4 .45 4 .47
XNA Regional Jet Center 4 .46 4 .94
FBO Statistics: September 2007
Million Air Category Gallons % Category % TOTAL
Jet Fuel sold to FVY-based customers 22 , 197 55 . 1 % 43 .8%
Jet Fuel sold to itnerant customers 181074 44 .9% 35.6%
Total Jet Fuel Sold 40 ,271 84 .8% 79.4%
10OLL sold to FYV-based customers 21769 38.4% 5 .5%
100LL sold to itinerant customers 41435 61 .6% 8 .7%
Total 100LL Sold 71204 15 .2% 14 .2%
TOTAL ALL: 471475 93 .6%
City Category
100LL sold Self-Serve 3 , 170 98 . 1 % 6 .3%
87 Octane MoGas sold Self Serve 61 1 .9% 0 . 1 %
TOTAL ALL: 31231 6 .4%
10OLL
• 10OLL sold self-serve 31170 30.6% 6 .3%
100LL sold Million Air FBO 71204 69 .4% 14 .2%
TOTAL ALL: 10 ,374 20 .5%
2007 Cumulative Fuel Sales by Percent of Type m Fuel Sales by Month 20 07
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MINUTES
• FAYETTEVILLE MUNICIPAL AIRPORT BOARD
September 12, 2007
MEMBERS PRESENT: Bob Nickle, Otto Loewer, David Hollman, Tim McCarley
MEMBERS ABSENT: Richard Greene, Janice Stanesic, Vaughn DeCoster (on military leave)
STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers
OTHERS PRESENT: Wayne Jones-McClelland Engineers, Neal Bilbe-Government Channel
ITEM #1 : Welcome.
A. Please turn off cell phones.
B. Comments from the public on items on the agenda. None.
ITEM #2 : Minutes of the August 8, 2007 meeting.
A motion to approve the minutes was made by Tim McCarley and seconded by David
Hollman. The motion carried.
ITEM #3 : Receiving of Reports.
A. Chairman Nickle. Commented that the gas station across the highway from the airport had
• closed, its sign is an airfield. obstruction, and this might be a good opportunity for the airport
have the remove the sign.
B. Director Boudreaux's report on airport activity. Announced that Vaughn DeCoster our
Airport Board Member is now back home from Iraq and will be at our next meeting. Be sure to
welcome him home. Referencing the flyer in the agenda, there will be a free concert by Barbara
Fairchild for our veterans at the Walton Arts Center on October 21 . There will not be a Veterans
Parade this year. Our aircraft operations are up this last month. We have replaced all the signs
the FAA Inspector noted, and will replace another fifteen after the first of the year, in the next
budget cycle. The bids are due in Friday for the re-striping project and we will apply for a grant
from the State Aeronautics Commission. Corrective work will begin tomorrow on the corporate
hangars to replace ten damaged sheets of siding and take care of items on the punch list. Work
continues on painting the floor of the FBO hangar and it should be finished this week. Notice to
Proceed has been issued for the Obstruction Project. This is the first step in the improvements
for Runway 16. Everyone was reminded to attend the Canadian Snowbird event on September
26, two weeks from today. Commented on the newspaper article about the Snowbirds, saying
one more article will be in the paper and it will list the sponsors, one of which is the Airport.
C. Financial Coordinator Nicholson's report on budget and FBO. Displayed charts from the
agenda on the screen and reviewed the information. Speaking of the recent tenant survey, said a
lot of the comments spoke about the bad flying weather during the first half of the year and the
cost of fuel as why operations have been down. O. Loewer made several suggestions for
different charts referencing a chart shown on screen, but not in agenda: Remove XNA from the
• numbers and average the rest of the airports; Remove Fayetteville and then compare it to the
average of the remaining airports; Another chart would be to average all the airports within 100
miles. Discussion followed regarding fuel sales, there was a big drop in June compared to June
of last year, which could be from not having an air show this June. The fuel prices at XNA and
Fort Smith airports went up, but at Pinnacle (Springdale), Rogers, and Siloam Springs the price
I
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remained the same as last month. O. Loewer suggested rather than looking at the number of
gallons sold, look at the figure in dollar amounts, that's a lot of money through the system. •
Chairman Nickle said SkyVenture used 60% of the 100 Low Lead fuel the FBO sold to the based
customers. James in reviewing the Financial Report said there was a slight improvement over
last month in the projected year end figure. Said the Proposed Budget for 2008 was sent to the
City' s Budget Committee last week, it will be reviewed, then a meeting will be set for Ray to go
before the Committee and defend any amount over the budget. Director Boudreaux said the
Airport is doing it's best to conserve spending for anything other than to keep the Airport to
standards. Discussion followed about building sunscreens for aircraft. A grant would be
available through the Arkansas Department of Aeronautics. They would be built just north of the
existing T-Hangars.
D. Senior Secretary Powers' report on T-Hangar Leases. All T-hangars are filled, as are the
storage units. There has been some activity this month, the FAA moved out of a T-Hangar they
used for equipment storage into two T-Hangar storage units, freeing up a hangar, which we filled
immediately, meaning one more plane is now on the field. Director Boudreaux said it was the
first time we had two storage units available they could relocate into.
E. Engineer Wayne Jones' report on construction projects. Said the contractor for the new
corporate hangars has been slow completing the items on the punch list and we are holding 10%
of their money until the project is completed. The Approach Survey is under way and they had
been putting out large white X's in a six mile area to be seen from the air, they are also setting
permanent concrete surveying monuments. The survey has to be flown while there are leaves
still on the trees, possibly next week. The obstructions will be identified by height, an Excel
spread sheet will be set up explaining their locations, and it will then be submitted to the FAA.
Chairman Nickle said this is the first step, of many steps, to resolving the runway safety area. •
W. Jones spoke of the Airfield Re-striping Project, which will re-strip the taxiways, some apron
and runway markings, some taxiway lines will be outlined in black, and rubber will be removed
from the north end of the runway. The estimated cost is $80,000 and will take two to four days
of work, with some work maybe at night.
F. Director Boudreaux's report on maintenance activity. We had one employee quit and
have hired a new guy, Dennis Singleton, who is self motivated. He was the lead man on the
City's asphalt crew and is happy to be here. They are all working hard keeping the grass mowed.
The man-lift has been repaired and they will be replacing the obstruction lights, lights on
Lancaster Drive and in the parking lots. They have been working on the overhead doors at Wings
Avionics.
ITEM #4: Old Business. None.
ITEM #5: New Business.
A. Airfield re-striping contract (bids due Friday). Director Boudreaux said we are presuming
the bids will come in good, if they are bad we'll back off.
A motion to approve the project, approve the grant request and submit to the City Council,
provided the bid is good, was made by David Holtman and seconded by Tim McCarley.
The motion carried.
B. Airport Security Upgrade Project. Director Boudreaux said the Aeronautic Commission •
offered a 100% grant based on the number of aircraft based on the airfield, it amounts to
$74,000. We have to apply for the grant in September. We will put cameras at all entry points,
on the ramp, have new access control with ID cards that you can delete a card out of the system
when someone leaves, and upgrade the entry gates. The system on the gates will use cards and
2
Ar
• will tell us who has entered and left the airport. We used the TSA's manual to come up with
what we needed. Chairman Nickle said the east side gates were the major complaint on the
survey. We need to keep up with the times, the FAA is going to require more security at GA
airports, and more people will be using the GA airports. There is expensive equipment on
airports---planes, and anyone having a plane should be interested in having additional security.
A motion to approve the grant request and submit to City Council was made by David
Hollman and seconded by Tim McCarley. The motion carried.
C. Airport Mission Statement. Director Boudreaux said Tim and other Board Members had
made suggestions and he had worked to consider what was suggested and worked it into a
concise version. Chairman Nickle read from the City Resolution that formed the Airport Board,
wanting to make sure the proposed Mission Statement met all the City's requirements for
forming the Board. Board Consensus was to keep the Goals listed on the existing Mission
Statement and to leave out the word "economic" in the last line of the Proposed Mission
Statement to read as follows:
To Lead Fayetteville and Northwest Arkansas with strategic and innovative aviation services
and solutions designed to foster economic growth and commerce in an ever changing
environment
A motion to approve the new Mission Statement was based on the Airport's Five Year
Master Plan Project, the new Mission Statement will include the goals listed on the
• previous Mission Statement, and the motion states the Airport Board will review the
Mission Statement in five years. The motion was made by Otto Loewer and seconded by
David Hollman. The motion carried.
D. Review of Airport Survey. J. Nicholson said he had checked into having the tenants
complete the survey online, and will try that next time. The agenda has the compiled
information and some responses had good ideas. O. Loewer said it was a good survey, and
suggested doing a survey every six to twelve months, and to put the information out in the tenant
newsletter, that we have added, or we have completed, or have corrected/replaced, an item
suggested or mentioned in the tenants' survey responses. Chairman Nickles thanked James for
his work with the survey.
ITEM #6: Other Business.
A. Items from the Public. Wayne Jones referencing an earlier comment about Snowbird
sponsors said that McClelland Engineers had also made donations to the SnowBird event.
Director Boudreaux related the Airport would have a cookout for tenants in the fall.
B. Items from the Airport Board. None
MEETING ADJOURNED AT 2:54 pm.
•
David Hollman, Secretary Date
3
r
• LEASE DATA SHEET
TENANT: Bayyari Construction, Inc.
ADDRESS : Mail: P. O. Box 6250
Springdale, Arkansas 72766
Office: 2025B Creek View
Fayetteville, Arkansas 72704
PHONE: 479-521 -9800 (0)
479-530-5555 (C)
479-521 -9802 (F)
PROPERTY LEASED: Land on the Southeast corner of the new West Side General
Aviation Apron. 130 X 130 (16,900 SF)
USE OF PROPERTY: Construction of a corporate style hangar building
BEGINNING DATE: As soon as possible upon approval
TERM OF LEASE: 30 year prime term
• OPTION TO EXTEND: 1 /20 year option
First Right of Refusal after 50 years
RENTAL FEES: $.20/Sq Ft per Year w/ increases every 10 years IAW CPI+1 %
except that the CPI increase by more than 20% before the 10 year
adjustment, the rent shall increase by 1/2. of the percentage increase.
Rental rates after 50 years to be negotiated between the parties.
The initial rent shall be $3,380.00 annually.
SPECIAL CONSIDERATIONS : Prime Term begins with issuance of building permit but no later
than 1 year from the execution of this agreement.
DESCRIPTION: Construction of a 110 X 110 hangar building.
RECOMMENDATION: Recommend Approval. Bayyari Construction will construct the
hangar for their company aircraft to be procured. Potentially, there
will be two aircraft housed in the building as a business associate is
planning to partner with Bayyari to store an additional aircraft.
•
MARK PRYOR 255 DIRKSEN SENATE OFFICE BUILDING
ARKANSAS WASHINGTON, DC 20510
COMMITTEES: (202) 224-2353
ARMED SERVICES
• COMMERCE SCIENCE, AND (1� 1 �1�� ['� `_ �`_, [�' ����� 500 PRESIDENT CUNTON AVENUE
TRANSPORTATION •''A��'LL�FBB;L L Ramos
G`q_J Rom
401
LITTLE ROGc, AR 72201
HOMEIANDSECURRYAND (501) 324-6336
WWRNMENTALA"NRS WASHINGTON, DC 20510 Tou FREE: (877) 259-9602
SMALL BUSINESS AND h"p://pryor.senate.gov
ENTREPRENEURSHIP
RULESANDADMINISTRATION October 3, 2007
SELECTCOMMITTOE ON ETHICS
Mr. Ray Bordreaux
4500 South School Avenue
Suite F OCT 1 6 2001
Fayetteville, Arkansas 72701
l ltI � �L19`• U?S <S 6
Dear Mr. Bordreaux:
Thank you for sharing the Federal Aviation Administration (FAA) determination with me. It is
always good to hear from you.
I realize the need for improvements to the Runway 16 Safety Area at Drake Field and the
vertically guided instrument approach from the north. I am pleased that the official
determination from the FAA coincides with the comprehensive research and study done by the
airport planning consultants. Please know that I, too, am committed to the completion of this
project, and I stand ready to assist you as this project moves forward. It is imperative that we do
• all we can to improve the safety of all airports, including the Fayetteville Municipal Airport.
Thank you again for keeping me abreast of developments in the plan. I look forward our
continued collaboration on this critical safety project. Please do not hesitate to contact me or my
office about this or any other matter of concern to you in the future.
Sincerely,
Mark Pryor 7
P.S. Due to increased security precautions, mail delivery to the U.S. Senate may be
unpredictably delayed. Such delays often hinder my ability to respond to concerned Arkansans
as quickly as I would like. I appreciate your patience and apologize for any delay in my response.
•
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Tuesday, September 25, 2007 NORTHWEST ARKANSAS TIMES
Canadian Snowbirds to p.erform
aerobatics show at Drake Field
N00hw tArUMSTIMM CanadianForcespersonnel. Twenty- among the factors in the decision to
four squadron members comprise return.
Canadas nine-jet air demonstra- the team that travels during the show The team flies with extreme pre-
tion team will perform at Fayette- season. The show team has 11 aircraft, cision - with as little as four feet of
ville's Drake Field on Wednesday. nine for aerobatic performances and . separation from wingtip to wingtip
Flying CT-114 Tutor jets, the men two as spares. — at speeds ranging from 100 to 320
and women of the 431 Air Demon- . This year the squadron will per- knots. Information may be found at
stration Squadron will perform avari- form at 58 air shows in 35 locations the squadrons Web site, www.snow-
ety of aerial maneuvers, including the during its mid-May through mid- birds.forces.gc,ca.
Big Diamond formation, the Centen- October season. Seven locations this Also appearing at the show will
nial Burst, the Double Inverted Pass, year are in the United States with the be Matt Younkin, Ray Vetsch, Phil-
the Concord and the Lag Back Cross. rest in Canada. This is the second . lip Butcher, the 188th Fighter Wing
Admission is $6 for 13 and older; 12 time in three years that the group and the Arkansas Falling Stars para-
and younger will be admitted free. has selected Fayetteville as a venue chute team. Attendees are encour-
Gates will open at 3 p.m. for its performance, citing respon- aged to bring their own chairs to
The squadron consists of about 85 sive turnout and citizen friendliness' the event.
•
1
• Maurice A. Parker Phoenix Office
Exeative Director 410 N. 40 St, Suite 700
adir@regionalaviatknpaMm.org Phoenix, AZ 85008
(602) 685-4112
W
Todd Joms
Legislative Director
ToddJoms@mgionabvia8onpa*ers.org
The Voice of Small Community Air Service in Rural America
http*lh a.regimalaviabmpaMes.org
September 25, 2007
" Legislative Update "
HOUSE PASSES
2007 FAA REAUTHORIZATION ACT
LARGE PORTION OF RAP AGENDA REMAINS
INTACT AFTER HOUSE PASSAGE
FOCUS NOW TURNS TO THE U, S. SENATE
• On Thursday, September 20'h the House of Representatives passed, by a largely partisan vote
of 267- 151 , the 2007 FAA Reauthorization Act (H.R. 2881). The bill, which authorizes
approximately $68 billion in FAA/aviation related spending for the next 4 years, includes
several provisions related to small community air service.
If enacted, the House passed bill would make the following reforms impacting the Essential
Air Service (EAS) program, the Small Community Air Service Development (SCASD)
program, and funding for local airport capitol improvements:
+ Permanently repeals the EAS Local Participation Program, a pilot program whereby
the DOT was authorized to select 10 EAS communities and require those communities
to pay 10% of their subsidy costs for a 4 year period;
+ Directs the GAO to study the EAS per passenger subsidy cap. The bill requires the
GAO to, over the next 18 months, review the impact of the per passenger subsidy cap
on EAS communities. The GAO must also review the effects of indexing the per
passenger subsidy cap for inflation beginning in 2009 and look at alternative methods
of measuring the subsidy rate, including the subsidy per passenger per mile;
+ Requires the DOT provide at least 45 days notice to those communities it has
deemed to be over the per passenger subsidy cap before ending compensation for air
service to that community. The Department is further required to establish procedures
• by which a community receiving such notice may work directly with an air carver to
ensure that the air carrier is able to submit a proposal to the Secretary to provide
essential air service to the community below the per passenger subsidy cap. The DOT
Page I of 4
{
i
shall assist the community by disclosing the aforementioned procedures to the
• community and disclosing the maximum level of compensation that could be provided
to an air carrier to comply with the cap;
+ Establishes a process whereby communities determined to be ineligible for subsidy
due to the per passenger subsidy cap can apply to have their eligibility restored. This
provision allows a state or local government, in conjunction with an air carrier, to
submit a proposal to the Secretary restoring compensation for air service. If the DOT
determines that the proposal does not exceed the per passenger cap and is consistent
with legal and regulatory requirements, the Secretary shall issue an order restoring the
eligibility of the community;
+ Creates within the DOT, the Office of Rural Aviation. This office is required to: 1 )
monitor the status of air service to small communities, 2) develop proposal to improve
air service to small communities, and 3) cant' out such other functions as the Secretary
considers appropriate;
+ Makes corrections to existing law regarding adjustments to compensation for
significantly increased costs. The bill includes language separating "non-fuel" related
costs from "aviation fuel" costs and provides that the Secretary shall, subject to
available funds, provide compensation to air carriers when aviation fuel costs increase
30% or more over a 6 month period. Language is further included that stipulates such
adjustments shall be reduced when the DOT determines aviation fuel costs have
decreased 30% over a 6 month period.
• + With respect to the SCASD program, the House bill would (1 ) Allow multiple
communities to submit a regional or multi-state application to improve air service, and
(2) Extend the program for an additional 3 years, to 2011 ;
+ Contains language maintaining current airline ticket taxes and the 4.3 cent per gallon
jet fuel tax at existing levels. Under the House passed bill, taxes on jet-A would be
increased from 21 .8 cents to 35.9 cents per gallon while taxes on avgas would rise from
19.3 cents to 24. 1 cents per gallon to help offset the costs of modernizing the nation's
air traffic control system. The bill does not include the controversial user fees on
commercial air service and corporate jet operations as was proposed in the Senate;
+ Authorizes airports to increase passenger facility charges (PFC) from $4.50 to
$7.00
Now that the House has passed the 2007 FAA Reauthorization Act, attention turns to the
Senate where, last Friday, the Finance Committee marked up' the tax provisions for the
Senate version of the bill. Leaders in the Senate will now schedule a time on the floor for the
bill to be debated, amended and voted on.
As September 30th is the deadline for passing the 2007 FAA Reauthorization Act, it appears
Congress will likely fail to fulfill its responsibility and will instead be forced to pass a
continuing resolution (CR) effectively extending obligations under Vision 1002. The House,
in anticipation of not meeting the September 30th deadline, has already drafted legislation
•
t The process by which congressional committees and subcommittees debate, amend, and rewrite proposed legislation.
= Vision 100, The Century of Aviation Reauthorization Act- Public Law 108-176.
Page 2 of 4
(H.R. 3540) providing a 3 month extension of current aviation related taxes and FAA
• programs.
IF WE DON'T STANDUP NOW, WE WON'T HAVE THE RIGHT TO COMPLAIN
OF FUTURE PROGRAM SHORTFALLS!
On August 22, 2007, RAP sent each EAS airport manager an email describing the benefits of
the Rural Aviation Improvement Act (S. 1571) outlining what communities need to do to
ensure Congress adopts commonsense yet critical EAS reforms this year. We asked that
airport managers obtain the signatures of local community and business leaders and finally
send the letter to the Washington, DC office of your federal elected officials. If your
community did not loin other members who sent the letter to lawmakers. PLEASE DO
IT NOW!
We cannot over stress how important and how critical it is that EAS communities are united
in our efforts to improve and ultimately save the program. If we don't aggressively take a
stand now, very little will be accomplished this year and the status quo will remain in effect.
You must immediately contact the Washington, DC offices of your two Senators and
request they support and co-sponsor the Rural Aviation Improvement Act, including
changes to the bill advocated by RAP.
In addition to securing the support of your Senators for S. 1571 , we also ask that you contact
the Senate Aviation Subcommittee to make it known that this bill, with RAP' s proposed
changes, must, in its entirety, be included in the Senate version of the FAA Reauthorization
bill. You can reach the Subcommittee by calling: 202-224-0411.
• We have posted on our website, h_ttp://www.reizionalaviationpartners.org/Home/sponsors.html
a description of the bill and a list of those members of the Senate who have thus far agreed to
formally support/co-sponsor the bill.
This is truly "use it or lose it" time. We must work constructively together and use the time
left in this FAA Reauthorization process to advocate positive changes to the EAS program, as
outlined in the Rural Aviation Improvement Act.
With annual subsidy rates on the rise, per passenger subsidy rates are also increasing, putting
additional communities at risk. There are currently 58 communities receiving subsidized
service who are subject to the $200 per passenger subsidy cap. If you are one of them, you
now have a rare opportunity.to correct this deficiency and keep rural air service opportunities
viable in your community. The Rural Aviation Improvement Act indexes the cap for
inflation and RAP is seeking to have the cap immediately adjusted so communities do not
have to wait 2 years. There are other aspects of the bill that have the potential to provide
substantive changes to EAS . . .
With regard to the language in the House passed bill providing that the DOT shall, subject to
available funds, compensate carriers for increased jet fuel costs, RAP commends the House
for acknowledging the severity of the issue by including language directed at alleviating the
problems caused by unexpected and significant increases in fuel prices. However, the House
language falls short of providing a meaningful solution to this ongoing problem.
•
Page 3 of 4
While the House bill provides that the DOT shall compensate carriers who are able to
• demonstrate increased fuel costs of 30% over a 6 month period 3, it does not establish a
specific or realistic formula by which the 30% is to be calculated/determined, nor does it
define what is meant by a 6 month period. By the House not setting specific and realistic
parameters and formulas for the DOT to follow in providing compensation, the House bill
allows the DOT to set the rules.
Unfortunately, as we have seen over and over again and repeatedly reported on, although the
DOT acknowledges increases in jet fuel costs are a significant problem, they do not want to
re-adjust compensation during the 2 year EAS contract period. 90 day termination notices are
the Department's preferred method of addressing the issue. Therefore, should the House
passed language be enacted into law, small community stakeholders should not expect the
Department to finalize compensation rules/guidelines aimed at truly addressing the issue,
rather rules will likely be developed which are illusory and cannot be attained by carriers. In
the end, if Congress does not step up and legislate specific and realistic compensation
guidelines, the status quo will continue; carriers will continue to leave the program and
commercial air service to small communities will suffer as a result.
RAP will continue to review the House passed FAA Reauthorization Act and critique for
further changes we think will benefit small communities and EAS carriers. Moreover, we
will keep you apprised of developments in the Senate.
•
•
H.R. 2881 also authorizes the DOT to reduce compensation when fuel costs decrease 30% over a 6 month
period.
Page 4 of 4
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scholarships for technology-
State Arkansas' per, capita income — the average based college degrees.
. Continued fromPage 1D income earned for every person In the State — Arkansas needs to make im-.
provements soon, Kathy Deck,
E`°moody Analysis. is about $27,9(10 lower than all but two states director of the Center for Busi-
l�oody's Economycom. a -. ' ness and Economic Research at
Pennsylvania-based economics in the country and 77 percent of the national the University. of Arkansas in
research fun projects Arkan- Fayetteville, said Monday in a
sas' per capita income. in 2020 average of about $36,300, according to the telephone interview.
will be almost $47,700, which : . U:S. 13ureaU Of EeonomioAnalysis.` "I honestly think every
would be 78 percent of the ex- moment is that moment [to
peMed national average of about. change]," said Deck; who also
$61100. sans in science, technology, en- Ajay P. Malshe, a university attended the Fayetteville meet-
For Arkansas to. reach the gineering.and math, said Mary professor and chief technology ing. "You have to decide and
goal ipwill have to create about Good, dean of the College of In- officer at NanoMech — a nan- decide and decide again that
250,000 jobs averaging;$61,000 formation Science and Systems otechnology company housed you are going to make the in-
:a year,'-about 19,200 such jobs a Engineering at the University of at the incubator, said the state vestments that are-going-to en-
year, experts.say. Oyer the past .Arkansas at little.Rock. is making investments,in "ad- sure economic success in the
10 years;Arkansas( employment . "If you want4o attract com- vanced" materials that could future."
1Sas 'grown by less than ll,000 .p'anies or build companies here, spawn nanotechnology and Jeff a partner with
Jobs'a year;according to the US .you bane to have people com- biomanufacturmg. Streetsm Collins,lli Data Services of
Bureau of Labor Statistics petent to do that Good said. The university unveiled a Northwest Arkansas; has.long .
' • Even ifit is d ictilt to attain, '[Businesses] will.come where Center for Excellence for 14ano, been a supporter of.increas-
ustill need to set 'the goal " where is talent even if there is Micro and Neuro-Electronics ing Arkansas'. knowledge-based
said Adams :Acxtom'scotporate not necessarily a market for ev- Sensors and Systems in April busmesses :instead of continu-
e leader for economic develop ;trythmg they do Other leaders emphasized ing recruitment of manufactur-
ment- Withoutimprovement in . that Northwest Arkansas must ing businesses? .
t : Accelerata Arkansas';bas the educaGon� Arkansas never .*W continue improving and in- "While a state in the position
support of state leaders be able to grow or recruit a sig- creasing cultural amenities., that Arkansas is in cau't afford
Maria Haley executive direc- nificant number of.knowledge- Elise Mitchell, president and
tor of the Arkansas Economic . based busmesses -- ' chief executive officer of Fay- -to turn its back on any method
Development Commission_and . Adamsknows tbatfusthand etteville-based Mitchell Com- available to create employment
a meinber,of Accelerate Arkan- He has a-son who works in munications Group Inc., noted and wealth, you have to be real-
sas, said in a prepared statement. Shanghai, China and another the Crystal Bridges Museum of istic about what is possible with
that the
research and inclusive, '-who works inAtlanta`and'there . American Art in Bentonville manufacturing,".said Collins, a
approach to developing the is no economic reason for them will be a significant'attraction member of Accelerate Arkansas
plan "speak to the quality of to come back to the state," Ad- and added regional amenities and Deck's predecessor at the
the strategies and recommen- ams said, were important in drawing tal- Center for Business and Eco-
dations made by Accelerate ` :. "We export our kids," Adams . ent to the area nomlc Research.; .
Arkansas 'and underscores our . said: "We've got to get our kids Educational ideas includ Accelerate Arkansas.worked
State's legi'slative- support for excited about doing something ed instituting a regional high_` with 149 people throughout the
economic;developrmerit7 other than the status o." school in each of the state's 75 state for more than two years to
..The Legislature has passed' Another Tuesday meeting counties to specialize. insci- formulate its ideas. Participants
seven initiatives proposed by was held at the Genesis Tech- . ence, technology, engineering in the process came,from every
Accelerate Arkansas. in the past nology Incubator at the re- and math; adding the technical area of the state.
two sessions. . search park at the University curriculum in schools through-
The key strategy to improv- of Arkansas at Fayetteville. The out the state in all:appropriate Information for this artWe was provid-
ing the economy is increasing incubator is home to several grades, including elementary ed by Laurie Whalen of the Arkansas
the educationalleyel of Arkan- knowledge-based businesses. school; ,and-establishing.more Democrat-Gazette.
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