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HomeMy WebLinkAbout2007-08-08 Minutes• AIRPORT BOARD MEETING August 8, 2007 MEMBERS ATTENDING: Bob Nickle, Otto Loewer, Janice Stanesic, David Hollman, Richard Greene, Tim McCarley MEMBERS ABSENT: Vaughn DeCoster (on military leave) STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Rick McKinney and Warren Jones -Arkansas Air Museum, Leonard McCandless -Ozark Military Museum, Tyrone Rogers -Fayetteville Government Channel, Craig Young -tenant, Charles Heathco-tenant, Wayne Jones -McClelland Engineers ITEM #1: Welcome -Chairman Bob Nickle A. Turn cell phones off. B. Comments from the public on items on the agenda. None. ITEM #2: Minutes of the June 20, 2007 meeting A motion to approve the minutes was made by Tim McCarley and seconded by Richard Greene. The motion carried. ITEM #3: Receiving of Reports • A. Chairman Nickle. Offered congratulations to the Arkansas Air Museum on their new display, their acquisition of Sam Walton's original aircraft. Stated he was excited to hear of the FAA's Letter of Determination. B. Director Boudreaux report of airport activity. Suggested having a Strategic Planning Meeting to discuss ways to increase fuel sales and aircraft operations, as these directly affect the Airport's cost of the tower. The FAA has given the airport a new Runway Safety Area Determination. Copies will be sent to all the governmental delegation. The new corporate hangars have real issues to be corrected. SkyVenture has paid first month rent and has asked for a reduction in rent for the first 90 days to build out their office. The FAA Certification Inspection Letter noted faded airfield signs and paint, and the Fire Department did not respond properly. Their second response went well. We will be doing some proactive work, getting a tower frequency radio for the fire truck for better communications. Reminded everyone of the Canadian Snowbird Event on September 26h, gates will open at 4:00. Told that of one of the Airport Maintenance Crew has quit and we have a new employee starting soon. Chairman Nickle stated the Letter of Determination from the FAA has tremendous potential for the airport growth. Thanked Ray for organizing their trip to visit with the FAA. Also thanked Wayne Jones for his help during the meeting, Wayne and the consultants did a great job on their presentation. He suggested sending a letter and copy of the Determination to the congressional delegation. C. Financial Coordinator Nicholson report on Budget. and FBO. Commented on the downward trend for the last six months and attributed the trend to the cost of fuel. We are behind the previous year's numbers. The itinerant jet traffic has been down. O. Loewer commented he thought there was something else going on, something locally, not just the cost of fuel, it's too much of a change to be solely the fuel price. It was suggested that • pilots/companies were used to flying operations at a certain level when the fuel prices went up, then as the fuel prices continued to stay up they reduced their level of operations. Normally there is an Air Show in June, increasing the operations and fuel sales; there wasn't an air show this June. R. Greene said the downward trend started in October 2006, it's probably not an J airport problem, and things that are happening in Fayetteville could be the cause. Relating to his business, he said their level of traffic in July was like twenty years ago, and it picked up in • August. O. Loewer expressed concems that we might be losing traffic to our neighbors. It was mentioned that even airline flights are being canceled, that is the number one complaint of business travelers, and that will be better for us in the future. R. Greene said we are the largest city in the MRSA, we are positioned correctly for down the road. J. Nicholson reviewed the financial charts in the agenda, and discussed the loan payment to the City for the new hangars and the rent revenue the Airport will be receiving on those two hangars. Director Boudreaux mentioned some projects coming up that are not listed: Airfield marking and signs. W. Jones said the rc-striping will cost around $80,000 and is eligible for a 90/10 grant from the State Aeronautics. Signs have been ordered and are also eligible for a State grant. Next year the Airport will be re-evaluated for our cost of the tower. Director Boudreaux stated the City Budget Department had instructed departments to reduce 1.5% of the target budget for next year, and that he appreciated James' hard work on the budget. D. Senior Secretary Powers report of T -Hangar Leases. Stated all T -Hangars are rented with five names on the waiting list for the smaller units, and three on the twin list. Director Boudreaux told of an inquiry for the AATC hangar from Alpha Aviation, which provides training for missionary pilots and mechanics, and others that want to meet their requirements. Their airport in Oklahoma is closing. They decided to relocate at the Springdale Airport. E. Engineer Wayne Jones' report on construction projects. Stated he was frustrated in the work completed in the last six weeks, met Monday with the Project Manager, things that were listed on the Punch List that was reported as fixed, were not. We also met with the sub- contractor. Our goal is to have them completed by the end of this week. We are withholding $127,000 from payment until completed. The City Council approved the Airport Obstmction Survey last night and hope to have it finished in ninety days. It will be flown while the leaves are still on the trees. We have started the Airfield Striping project in the office, with plans to have it out in one week. Reported the Specs will require a mechanical application of the • reflective beads for the striping project. Responding to Chairman Nickle's compliments of Wayne Jones and of Bamard Dunkelberg Consultants' good work, Wayne said he was proud to be working at the airport. ITEM #4: Old Business. None. ITEM #5: New Business. A. Request from Rick McKinney for financial assistance with the Snowbird event. He reviewed the history of the Museum requesting and receiving financial assistance from the City for air shows in the past. Funding began at $20,000, and had been reduced to $10,000 for the air show last year. The Museum's has reduced its current request from $10,000 to $5,000. He told about the Canadian Snowbirds act and of the different acts that will also perform prior to the Snowbirds'. Waived air time is 1.5 hours, with 45 minutes of flight time. Children twelve and under are free, age thirteen and up will cost $6.00. Director Boudreaux said when they found out there would not be an air show this year that money had been removed from our budget. Chairman Nickle said the request for $5,000 amounts to about 33% of the air event's budget, and when we assisted with $10,000 for the Air Show that represented 10% of the Air Show's budget, saying next time maybe they could try harder to get sponsors. Director Boudreaux said we can't just give the money, it has to be for a service with a written contract. O. Loewer said he thought the Airport should do something to help bring some focus to the airport and $5,000 is reasonable to do. A motion to approve a joint contract between the museums and the Airport to provide • $5,000 towards public relations for the Snowbirds' event was made by Janice Stanesic and seconded by Richard Greene. The motion carried. Discussion followed the announcement that the City's auditor had found in the records the City's Parks Department, some time ago, had been assigned the responsibility of Arkansas Air • Museum hangar building. Chairman Nickle stated the Parks Department is into public events, make a good case for them to keep it in Parks. Greene. The motion carried. B. Request from Wilma Walker, Wilma's Restaurant, Lease Amendment. Director Boudreaux said she is asking to not pay the ten percent on gross sales on the first $500.00 each month for the rest of her lease. Chairman Nickle said he would prefer to not do a permanent amendment, but to look at it every two to three months. R. Greene said it is almost like the restaurant is doing us a favor by being here, they could be someplace else with more walk-in traffic; this location is not a good premium location. We should do all that is in our power to keep them open. Their customers have got to want to come to the airport. O. Loewer said it is a convenience to us to have their service. A motion was made by Richard Greene to waive the percentage rent though the end of 2007, then look at it next year in January, the motion was seconded by David Hollman. The motion carried. C. Approve the Airport's 2008 DBE Goal Update. J. Nicholson said there are provisions in the federal grants if we anticipate receiving $250,000.00 or more, then the DBE goal must be updated every year. It assures minority, women, disadvantaged business an equal playing field to procuring contracts. The update must be recognized by the governing body, it must be forwarded to the City Council. A motion to approve and forward the Airport's DBE Goal Update to the City Council was made by Tim McCarley and seconded by Janice Stanesic. The motion carried. D. Lease Amendment Sky Venture Aviation. Director Boudreaux stated the hangar is not completed and SkyVenture has Temporary Occupancy. SkyVenture asked for a reduction in • rent for three months by approximately $1,800 per month for them to make improvements to the hangar, by building out an office inside the hangar. D. Hellman suggested a follow up to assure SkyVenture does provide the improvements to the hangar. A motion to approve the request was made by Tim McCarley and seconded by Richard Greene. The motion carried. E. Discussion: Update the Airport's Mission Statement. The discussion led to setting the date for a Strategic Planning Meeting on Wednesday, August 291h at 3:00 pm. The next Airport Board Meeting will be on September 12's. ITEM #6: Other Business. A. Items from the Public. Craig Young called attention to the self -serve grounding wire and asked if the current reel could be replaced with a larger reel, and the current cable has splinters. Also asked about a spring on the fuel nozzle cap, it falls off and dings the paint. B. Items from the Airport Board. Director Boudreaux reported the Airport's identification sign is being tom down and will be removed, it will not be reusable, and asked if anyone had any suggestions for a new sign. AT 3:30 pm. • David Hollman, Secretary —tlo2 �07 Date