HomeMy WebLinkAbout2008-09-18 - Agendas - Final �k
• AGENDA
Meeting of the Airport Board
Fayetteville Executive Airport, Drake Field
1 :30 pm., Thursday, September 18, 2008
Airport Conference Room
1 . Welcome — Chairman Bob Nickle.
A. Please tum off all cell phones.
B. Comments from the public on items on the agenda.
2. Minutes of the June 11 , 2008 meeting.
3. Receiving of Reports.
A. Chairman Nickle.
B. Director Boudreaux report on airport activity.
C. Financial Coordinator Nicholson report on FBO and Budget.
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. Museum reports.
• 4. Old Business.
A. Update: Certified Repair Station.
B. Update: Environmental Assessment by Kelly Maddox.
5. New Business.
A. Discussion: Lease Extension Wings Avionics, Inc.
B. Approve FY2009 DBE Update.
Action Required: Approve and forward to City Council.
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 October 8 2008
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AIRPORT BOARD MINUTES
• August 13, 2008
MEMBERS PRESENT: Bob Nickle, Janice Stanesic, David Hollman, Otto Loewer,
Vaughn DeCoster, Richard Greene, Tim McCarley
STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers
OTHERS PRESENT: Wayne Jones and Daniel Bames-McClelland Consulting
Engineers; Warren Jones-Ark. Air Museum; Loretta Chisum Jones-Tulsa Air & Space
Museum; Blaise Sharkey-Million Air; Terry Lawson-Fayetteville Fire Dept.; Skip
Descant-The Morning News; Paul Parenti and Jayn Parenti-A Fare to Remember; Tyron
Rogers
ITEM #1 : Welcome-Chairman Bob Nickle.
A. Tum off all cell phones.
B. Comments from the public on items on the agenda. None.
Chairman Nickle offered condolences to Ray from him and the Board.
Director Boudreaux thanked everyone for their expressions of sympathy, and all that was
done. The family appreciated everything.
• ITEM #2 : Minutes of the June 11, 2008 meeting.
A motion to approve the minutes was made by Tim McCarley and seconded by
Janice Stanesic. The motion carried.
ITEM #3 : Receiving of Reports.
A. Chairman Nickle. None.
B. Director Boudreaux report on airport activity. Aircraft fuel prices are down. Self- .
serve sold 300+ of 91 Octane this last month. V. DeCoster said the aviation industry is
establishing more engines to run on 91 Octane. There is one T-Hangar vacancy, spread the
word. The Blood Mobile will be here on Sept. 25`h, keep that on your calendars.
Corrections to the Airport Certification Inspection are due on September 10`h. Changed the
airport name throughout the Certification Manual and have re-written the Emergency Plan.
The FAA inspector wanted the airport listed as Drake Field in the manual, not listed as
Fayetteville Executive Airport. The AAOA Conference is scheduled for the Embassy
Suites in Rogers in September. Invited Board members to attend, the airport will pay fee,
except for the golfing event. Will start the Airport' s Driver Training for everyone that
drives inside the fence.
C. Financial Coordinator Nicholson's report on FBO and Budget. Gave a power
point presentation with status charts on fuel sales, aircraft operations and the budget. The
aircraft operations are down 7% compared to the first seven months in 2007. Our airport
seems to be following in the trends of other airports. FBO fuel sales to based customers,
• who get a discount, has increased. Fuel prices peaked in July, with prices going down a
little this week. Reported he was pleased with the airport' s progress this year. Revenues
are ahead of expenses for the first time in many years. There will be some Capital Projects
coming up before the end of the year. Paul Becker, the City' s Finance Director, wanted
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everyone to be aware of the Airport' s liabilities, referencing the hangars the Airport built
with money borrowed from the City. Chairman Nickle said he disagreed with their theory, •
because the Airport had planned to pay for the hangars with their rent. The Airport
invested the money to increase the revenues. J. Nicholson, speaking of the proposed
security plan for the airport, said the airport had gone before the City Council for approval
to apply for a State Aeronautics grant for the security plan. The City Council approved the
request, but the State did not.
D. Senior Secretary Powers report of T-Hangar Leases. Explained there was one
vacancy and we had gone through both waiting lists and are now calling tenants asking if
they know someone that is needing a hangar. Director Boudreaux asked everyone to
spread the word, we want to fill the hangar and build up the waiting list.
E. Engineer Wayne Jones' report on construction projects. Said they are working to
remove the road from the Runway Safety Area and they are working with the Highways
Department on design criteria. Speed limit will be 45 miles per hour, which is the existing
speed limit. Lancaster Drive will be relocated and will probably become a City Street,
giving access to Scurlock Industries. We will have to work on aligning the drainage ditch.
Properties affected will be Standard Register and the Super Stop, both on the west side of
the highway, and Kearney' s on the east side. It will affect Kearney' s driveway. Chairman
Nickle asked if Wayne or staff had talked to the property owners that will be affected; are
they aware that part of their property will be used as part of the relocation of the highway?
Consensus was not all businesses had been visited or spoken to. W. Jones said the
highway relocation will be ahead of the railroad spur. Most of the property west of the
highway belongs to the City except about one acre with a home. Barnard Dunkleburg is
doing a noise study for the highway relocation, and the FAA is asking for the traffic count •
increase for the next 50 years. Their report could be finished by November or December.
Staff and Board Members expressed appreciation for Wayne's hard work, to see the project
come as far as it has, and that it reflected a lot on vision.
F. Director Boudreaux's report on maintenance activity. There have been a lot of T-
Hangar problems and the east gate has had problems. Noted appreciation of the new
Highway Department signs on I-540 f or Fayetteville Executive Airport.
G. Museum Reports. Ms. Loretta Jones, from Tulsa, was introduced, saying she has
been hired on part-time. The Kite Weekend event will take place on Saturday, October
18`h, the third weekend in October. Warren thanked Ray for directing memorials for Cheri
to the Museum. Director Boudreaux said aviation history had meant a lot to Cheri.
ITEM #4 : Old Business.
A. Certified Repair Station Proposal. Director Boudreaux referred to the Lease Data
Sheet. Said the company wants to remain anonymous, they have relatives in this area.
They have a good business and think they can grow three-fold in the next three years.
Discussion followed regarding the removal of office walls in the hangar and the airport
going out for bids for that work, and expecting three months to get leasehold
improvements made. Said he would like to continue to negotiate the lease, would like to
charge the first and last month rent as deposit, lease three years, with one three-year
renewal option. They will bring more operations to the airport and more jobs. There is
another group looking at the hangar, and we are trying to put them off as they only want
3,000 sq. ft. The airport will have to take care of the hangar doors, whichever tenant •
moves in. A Special Called Airport Board Meeting made be requested for approval of the
lease. BOARD CONSESUS : To go forward with negotiations.
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ITEM #5: New Business.
• A. "C3" notice of lease cancellation. Cancellation letter is in the agenda package.
B. "A Fare to Remember" proposal. The proposal was handed out at the meeting and
attached as part of the minutes. Director Boudreaux explained he had not seen the
proposal and was seeing it for the first time. Five months ago Paul had asked for first
choice on the C3 location. C3 is relocating their business and Paul would like to expand
their lunch dining area to that location. Paul and Jayn expressed how excited they were to
be at the airport. They thanked the FBO and the museum for placing a plane by the
restaurant patio for the rehearsal party. The attendees were really impressed and a lot of
them had their picture taken next to the plane. They explained catering is their main
business. They could have clients leaving on planes rather than in limos. They plan to
open for lunch, and plan to have a soft opening next week. They really would like to have
their lunch dining area in the C3 area and just use the other area for their banquet/event
area, not have to tear down and set back up after each lunch. They could open up a door in
the north wall of C3 area into their kitchen area for easy access. They have joined the
Rogers Chamber of Commerce to bring more exposure to the airport and museum. They
have their beer and wine license and will apply for their mixed drink permit. They would
need 36 people a day at $5.00 to cover expenses. Lunches will range from $5 to $ 10.
Later plans are to be open for breakfast, serving pastries, and Sunday brunch with a piano
or harpist, ideas are not a problem, it just really depends on how much we want to work.
R. Greene said we like what they have done and they are what we were looking for.
A motion to approve renting the additional space with the base rent for that area
• $250.00 per month with the $250.00 waived for three months, rent starting December
1, 2008, making the restaurant's total base rent $750.00 per month plus the ten
percent of the Gross Sales. The motion was made by Vaughn DeCoster and seconded
by Richard Greene. The motion carried.
Discussion followed regarding an annual audit and to make sure the restaurant is not
exceeding the annual rent.
ITEM #6: Other Business.
A. Items from the Public. None.
B. Items from the Airport Board. Director Boudreaux called attention to newspaper
article in the agenda. Chairman Nickle suggested including the article in the airport's
newsletter. Comments were made referencing: The article on Hugh Brewer, Chairman of
the Arkansas Air Museum; also on Springdale Airport losing their tower could mean more
traffic for our airport. T. McCarley mentioned the Rogers Airport was hosting a fly-in. V.
DeCoster mentioned receiving positive comments from tenants on the safety rules in the
movement area on the east side.
Meeting Adjourned at 3:28 p.m.
David Hollman, Secretary Date
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August 13, 2008
Board of Directors
Fayetteville Municipal Airport, Drake Field
c/o Mr. Ray Boudreau, Airport Director
Airport Administration Office
4500 South School Avenue, Suite F
Fayetteville, AR 72701
Dear Sirs/Madams:
We ask you to consider our company, A Fare To Remember, as future tenants of the additional front
space currently leased by C3 Group.
Our Vision:
To provide longer operational hours for daily food service for
airport personnel and surrounding businesses
Benefits: •
1 .
Serving lunch from the additional space will provide greater opportunity for private
luncheons, daytime meeting groups, etc., as well as make it possible for us to set up
earlier in the day for evening events.
2.
Possible creation of an "airport lounge" area. .
3.
Minimal remodel needed to gain re-access to our kitchen.
Our Request:
Since we are opening for lunch Monday, August 18, and have been redesigning the kitchen/prep space
to fit our current needs, and since we have made great physical labor and financial investment to the
property, we ask that the Board considers the following:
Allowing us to take possession of the space immediately following current tenant's leave and allows
us a three month period of adjustment before requiring additional rent, with the future lease cost at an
additional $250 per month plus the 10% of sales previously agreed upon.
Thank you for your consideration, we are thrilled to be part of this location and look forward to
many years of co-efforts for its future success!
Jayn and Paul Parenti, Owners
A Fare To Remember •
1 of 1 8/232008 1 :31 PM
Tayve eeNSAS AVIATION & ECONOMIC DEVELOPMENT
FAYETTEVILLE MUNICIPAL AIRPORT • DRAKE FIELD
September 9, 2008
MONTHLY REPORT
Aviation and Economic Development Department _
Fayetteville, Arkansas
August, 2008
AVIATION:
• ACTIVITY: Operations were down slightly for the month of August. Fuel sales
continued the upward trend. If the trend holds thru the end of the year, Million
Air will break 500,000 gallons for the year. Of particular note, is the fact that the
jet fuel sold to based aircraft is continuing to increase as a percentage of the total.
In August it was 69% local customers to 31 % itinerant customers. It was not that
long ago that the norm was a 50150 split. While operations were off slightly, the
trend line continues to show slight recovery. The month of August was
abnormally wet and overcast restricting the local flights.
• • RUNWAY 16 RSA IMPROVEMENT PROJECT: We received vehicle traffic
data from the State and I have attached a copy for your information. There is still
less than half of the traffic on Highway 71 when compared to pre I-540.
McClelland Consulting Engineers is preparing the Task Order for the engineering
and design of the project. We will need FAA approval and funding to enter into
the contract. The next funding phase will include final design and bidding
services and some funding to get the land we need under contract. Kelly
Maddoux, Barnard Dunkelberg, will be at the Board Meeting to discuss the
progress and findings of the Environmental Study.
• AIRPORT BLOOD MOBILE: They will be at the airport September 25 from
8 :00 until noon.
• A FARE TO REMEMBER: Our new restaurant and banquet center is now
open for lunch from 11 :00 until 2:00. They are working on the new space
approved by the Board at the last meeting and hope to be fully utilizing that space
for the lunch business the first of October. They are planning a grand opening for
October 3d with the Fayetteville, Rogers and Springdale Chambers. Plan on
attending as it is always nice to have a big crowd and they plan to have food.
• CERTIFIED REPAIR STATION: We should have a signed agreement within
the next week and a check for first and last months rent. We have a good bid to
remove the classroom structure and have asked several door firms to make
proposals for the doors. I hope to be able to present to the next meeting the full
scope of work and ask for Board action to proceed with the project. The lease
• requires that we take out the classrooms and repair the hangar doors.
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642 • 479.718.7646 FAX • v .accessfayetteville.orglgovernmenUaviation
airport_economic_development@ci.fayetteville.ar.us
• AAOA CONFERENCE: The Arkansas Airport Operators Association annual
conference starts this coming Monday, September 15 at the Embassy Suites in
Rogers. We encourage Board Members to attend the State Aeronautics meeting
which is held in conjunction with the conference and is scheduled for 1 :30
Tuesday September 16`h at the Embassy Suites in Rogers. There are about 150
conferees signed up.
• TABLE TOP DISASTER EXERCISE: The annual disaster table top was
conducted with representatives from the City, County and various response
providers. We got high marks from the attendees and in the mean time learned a
lot. While we don' t anticipate a disaster on the airport, it is important to be ready
and be able to fine tune the team to be able to respond promptly and efficiently.
The next exercise will be held at the Washington County Response Center.
• SKYVENTURE AVIATION MAINTENANCE: SkyVenture Aviation Inc.
announced that they will expand their business to include aircraft maintenance for
other than their own aircraft. They will utilize the new hangar south of the FBO
Hangar.
ECONOMIC DEVELOPMENT:
• ARKANSAS ECONOMIC DEVELOPERS CONFERENCE : I attended the
AED conference in Hot Springs with Bill Ramsey of the Fayetteville Chamber.
The conference was very productive as I was able to meet with the Arkansas head
of the SBA concerning our Technology Park project on the east side of the •
Airport. He agreed to schedule a meeting in October with himself and the
regional representative of the EDA out of Austin. There are grant possibilities for
developing Tech Parks,
Respectfully Submitted,
Ray M. Boudr4DetauxD' ctor
y
•
Tayve e;i le
• ARKANSAS
Airport Progress Report
TO: Fayetteville Municipal Airport Board
THRU: Ray M . Boudreaux, Director
FROM: James Nicholson, Financial Coordinator
DATE: September 10, 2008
Tower Operations:
OPERATIONS - MONTHLY 2000 - 2005
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
• 02000 1288 1735 1881 V313 1472 2.231 {868 2,61 2,132 1951 2,02 1479
02001 2,355 2.330 2,521 2A34 2,901 4293 3,549 3.741 2.317 2,770 2,482 2,356
02002 2.65 2.260 226 2282 2,304 3,487 2284 2.920 3,828 3,68 3282 2,630
02003 3,42 2,379 2,908 3260 3,30 6,378 0473,874 4279 4,587 3,084 3,561
02004 3A43 3.688 4270 4,570 4,325 5.34 4223 3,885 3,528 2,796 2,68 2.729
02005 2282 2.702 3,64 3,605 4,581 6.068 4,5 88 83 40 4,066 4A82 3,577 3A74
M 200 3,932 2.80 3.051 3.297 4,67 OR34 6,31 5,260 4,387 2,007 2,739 2,261
02007 2975 2.785 3048 3,06 3.95 3,61 3.004 3.089 3.298 3,797 3,311 1123
02005 1 2,60 2.620 1 2,333 1 2,747 1 3,032 1 2,727 1 3.657 1 3,358
OPERATION5 - CUMULATIVE 2000 - 2008
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
02000 1266 3001 4.882 8295 7,787 1106 11876 14,027 6,69 6,10 2D282 21,761
02001 2.356 4AB6 7AO6 0,110 6,041 0,334 2DA83 24,824 27,001 29,771 32,253 34AOO
02002 2,65 4,421 6,636 8,96 11222 11,709 6,973 9,893 23A21 26ASO 29,971 32,601
02003 3,42 5,501 6.409 11789 15,006 20,464 24,811 2805 32.764 37841 4D,46 43)968
• 02004 3A43 7,61 11401 6A71 20296 25)508 20A31 33,76 37,544 40.340 42,508 45237
02005 2262 4,964 8,068 11573 1,254 22822 26.905 30,973 35))39 39,721 43298 48,772
IS 2006 3.932 6,743 9,794 OA91 9266 24,92 30.508 35,788 40,135 43,042 46,781 48,042
02007 2875 5,10 8208 11384 14,579 0,760 20,764 24A53 27,741 3U539 34,879 35AD2
02008 2,180 4,509 7,142 9,889 4,921 6.648 10.305 22.683
• FBO Fuel Sales Charts:
FUEL 5ALE5 - MONTHLY 2001 - 2008
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JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
02001 1,028 D,457 18,813 9285 D530 9.530 9,530 15.807 20A93 25,12 221382 28,288
02002 29,321 28284 14,908 23,949 14,892 41,54 13,285 20A00 391385 29,447 24,570 2181
02003 31522 28,454 34,128 30293 27,200 32,305 21885 30298 27,492 51528 25.292 28,792
02004 38.843 28537 28,99 35,084 2951D 28,175 214234 31334 43.730 38.11 22A90 301033
02005 42,938 29583 32,178 28,263 28,11 35,18 22233 28,488 33,177 40837 38.255 31298
02008 4134 39.899 50.859 38.505 58.253 81495 33,797 41490 531338 47,98 52.892 40281
02007 41704 39.883 51271 48,944 43,850 37,852 32.704 37085 $0,708 50.939 43,371 29.033
02008 41058 501320 39,089 41285 37587 30.837 32,114 35,827
FUEL 5ALE5 CUMULATIVE 2001 - 2008
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600
• 400
200_
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
02001 1,028 28,485 47,300 66,585 77,11 87.645 98,175 13,782 34275 19,387 17,749 208015
02002 29,321 55,805 70,511 94A50 39,352 10084 19,149 99,549 228,914 258,387 282,931 304547
02003 31522 59,988 909 124,407 11507 9302 205.577 235.875 283,387 314.895 340,17 388079
02004 38,843 85,480 93,589 128.873 158.133 SOA59 207.593 238027 282,657 313038 341328 371381
02005 42.938 72,499 1D4577 92.930 VVM3 97231 29.484 247,930 28197 327,944 388,99 397,497
02008 4194 81)33 31002 170,407 228580 290,155 323052 385A42 41,780 465,970 52AN 559,109
02007 41,704 81,387 32.838 179.582 223232 281)S4 293,788 331773 382A79 433,41 478,789 505522
02008 41,058 91378 30A87 17x732 209,39 240,155 272270 308)97
Survey of Fuel Prices: Fuel prices within 50 miles of FYV as ofd- 4 - I 'I -o8
Ident FBO Name Jet FS 10OLL FS 100LL SS 87 MoGas
TQH City of Tahlequah (both seffserv) 5A3 4 .89
FYV Million Air Fayetteville ! City SS 5 .92 5 .71 4 .96 4 .27
_ SLG _ City of Siloam Springs 5.40 5 .56 5 .06
• FSM TAC Air 1 I 6013 5=*M 5 .sq 5
VBT Summit Aviation 5 .55 5 .40 5 .20
XNA Regional Jet Center . 5 .54 6.05
ROG Beaver Lake Aviation 5 .54 5 .42
ASG Pinnacle Air Services 5 .77 5 .49
FBO Statistics: August 2008
Million Air Category Gallons % Category % TOTAL
Jet Fuel sold to FYV-based customers 190746 69 .0% 54 .8%
Jet Fuel sold to itinerant customers 8,890 31 .0% 24 .7%
Total Jet Fuel Sold 280636 82 .5% 79 .4%
100LL sold to FYV-based customers 30353 55 .2% 9 .3%
100LL sold to itinerant customers 24717 44 .8% 7 .5%
Total 10OLL Sold 6,070 17 .5% 16 .8%
TOTAL ALL: 34 ,706 96 .2%
City Category
100LL sold Self-Serve 1 , 121 82 .6% 3 . 1 %
91 Octane MoGas sold Self Serve 236 17 .4% 0 .7%
TOTAL ALL: 1 ,357 3 . 1 %
10OLL
10OLL sold self-serve 11121 15 .6% 3 . 1 % •
100LL sold Million Air FBO 61070 84 .4% 16 .8%
TOTAL ALL: 71191 19 .9%
3008 Cumulative Avg Fuel Bala" by Pament of Type Fuel Baha by Month 2008
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OPERATING SUMMARY
MONTH ENDING 8/31/2008 AIRPORT BOARD
OPERATING ACTIVITIES 2006 2007 2007 2008 2008 2008
Actual Budget Actual Budget Budget YTD Actual YTD
REVENUE
Rents & Leases 439,690 471 ,600 430,259 470,000 313,333 313,590
Aviation Fuel 191 ,314 217,000 153,478 166,000 110,667 72,393
Contract FBO 45,500 54,500 72,966 110,000 73,333 80,195
Miscellaneous 19,089 10,700 5,121 3,000 2,000 11 ,268
INCOME RECEIVED FROM OPERATING ACTIVITIES 695,592 753,800 661,824 749,000 499,333 477,447
EXPENSES
Personnel 291,066 319,648 301,229 314,262 209,508 215.972
Materials & Supplies 16,537 20,019 20,276 22,852 15,235 17,472
Aviation Fuel Purchases 129,680 157,100 86,174 110,000 73,333 40,858
Services & Charges 194,671 194,175 178,146 164,308 109,539 95,858
Cost Allocation to General Fund 132,684 115,908 115,908 65,976 43,984 43,984
Maintenance 68.938 59,390 67,446 55.950 37,300 19,858
ATC Tower Costs 23,337 21,780 23,127 24,341 16,227 -
Interest on West GA Hangars Loan (accrued) - - 17,500 35,000 23,333 23.333
INCOME USED FOR OPERATING ACTIVITIES 856,914 888,020 809.806 792,689 528.459 457,334
NET INCOME FROM OPERATING ACTIVITIES - GAIN / (LOSS) (161 ,321 ) (134,220) (147,982) (43,689) (29,126) 20,113
INVESTING ACTIVITIES 2006 2007 2007 2008 2008
Actual Budget Actual Budget Actual YTD
NON-OPERATING INCOME
Interest on Investments 28,899 22,000 17,566
Other - Misc 207 - -
• CAPITAL IMPROVEMENTS EXPENSE
05029 AIP #33 Master Plan Update 6,137
05034 AIP #34/35 W GA Apron 4,940
05046 AIP #21 Airport Expans Equip (Airband Radios) - 2,677
06020 SkyVenture Improvements Rebate 12,000 8,000 5.000
06021 Airfield Markings - Repaint 77,873
06023 West GA Hangars 1,380,624
07024 Runway Approach Obstruction Study 12.219 32,781 32,781
07039 AIP #36 Correct Runway 16 Safety Area Deficiency - 157,900 68,025
08055 Replace Airport Fence - Flood Damage - 9,200
USED FOR INVESTING ACTIVITIES - - 1,464,687 198,681 117,683
FINANCING ACTIVITIES
LOANS
Principal on West GA Hangars Loan 700,000 - -
Payments on Loan Principal (accrued) (23,333) (46,667) (31,111)
GRANTS STATE / FEDERAL
Received from Dept Aero - W GA Hangars 600,000 -
Received from Dept Aero - Re-Striping - - 73.448
Received from Dept Aero - Obstruction Study - - 45,000
Rcvd State Grants on Fed Projects 62.741 - -
Due from State Grants on Fed Projects - - -
Received from AIP #33 Master Plan 5,830 - -
Received from AIP #34/35 W GA Ramp 136,054 - -
Due from AIP #34/35 West GA Ramp - - -
Received from AIP #36 Correct RW16 RSA - - -
Due from AIP #36 Correct RW 16 RSA - 150,005 -
NET INCOME FROM FINANCING ACTIVITIES - - 1 ,481 ,292 103,338 87,337
VRRORT CASH BALANCE 708,280 576,904 437,872 566,670
ENT ENCUMBRANCES (CAPITAL)
NICE TASK ORDER #3 - Engineering AIP#36 89,875
LONG TERM LIABILITIES
Hangar Loan Principal 622,222
AIRPORT CASH MINUS LIABILITIES (145,427)
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Tayve L ee
EXECUTIVE AIRPORT
Staff Review Memorandum
TO: Fayetteville City Council
THRU : Ray M. Boudreaux, Director
Fayetteville Executive Airport Advisory Board
Staff Review Committee
FROM: James L. Nicholson, Financial Coordinator / DBE Liaison
DATE: September 19, 2008
SUBJECT: Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2009
Recommendation: Review & Approval of a Resolution to accept the Fayetteville Executive Airport
Disadvantaged Business Enterprise (DBE) Program Goal Update for FY2009.
Background: On October 14, 2000, the Fayetteville City Council approved the Fayetteville Executive
Airport's revised Disadvantaged Business Enterprise Program by resolution 147-00. The Airport's DBE
Program is federally mandated under 49 CFR Part 26 for all Department of Transportation (DOT/FAA)
grant recipients which anticipate receiving more than $250,000 in federal funds in the fiscal year. Drake
Field anticipates receiving approximately $2, 150,000, (Correct Runway 16 Safety Area Deficiency Phase
11), from the DOT/FAA in FY 2009.
The DBE Program assures that Minority & Women-owned businesses, and other economically
• disadvantaged small businesses have an equal opportunity, or "level playing field," in competing for
Airport procurement contracts.
49 CFR Part 26 requires that our DBE Program Goal be updated annually, and its acceptance
acknowledged by the sponsoring city's executive body. The Updated Goal describes the overall DBE
participation percentage and value of procurement contracts targeted for award to DBE contractors in the
fiscal year. The regulation provides the methodology to be used to set contract DBE participation goals.
Discussion: The purpose of this item is a new resolution approving the updated annual percentage goal
established by Fayetteville City Council Resolution No. 154-07 and previous annual updates for
DOT/FAA grant assisted contracts entered into by the City of Fayetteville Executive Airport.
The Airport Board has reviewed the updated goal and recommended at their meeting of September 18, that
the document be forwarded to the City Council for approval. The new resolution will accept and approve
the airport's updated DBE participation goal for FY 2009.
Budget Considerations: No budget effect.
/jn
Attachment: FY 2009 Goal Update & Methodology
Resolution 147-00
Resolution 154-07
•
City of Fayetteville
Staff Review Form
City Council Agenda Items •
or
Contracts
10172008
City Council Meeting Date
Ray M . Boudreaux Aviation & Economic Development General Government
Submitted By Division Department
Action Required:
Action Required : A Resolution to accept and approve the updated Fayetteville Executive Airport Disadvantaged
Business Enterprise (DBE) Program Participation Goal in 2009 for Airport Improvement Grant Project 3-05-0020-
0037-2009.
Cost of this request Budget Program Category / Project Name
Account Number Funds Used to Date Program / Project Category Name•
$ Airport
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
147 -00 , 150-01 , 61 -03
Previous Ordinance or Resolution # 97 -04 , e7-05
202-05 . 143-06 , 154 -07
Department Director Date Original Contract Date:
Original Contract Number:
City Attorney Date
Received in City Clerk's Office
Finance and Internal Service Director Date
Received in Mayor's Office
,yor Date
Comments:
• Overall Goal and Methodology
Fayetteville Executive Airport / Drake Field (F YV)
FY 2009 Update
Airport Sponsor: City of Fayetteville
Name of Preparer: James Nicholson, Financial Coordinator
Fayetteville Executive Airport/Drake Field
4500 S School Ave., Suite F, Fayetteville, AR 72701
Goal Period: 10/01 /08 thru 9/30/09 — AIP Grant No. 3-05-0020-0037-2009
Overall DBE Goal: 1 .4%
Introduction to 2009 DBE Goal update: The City of Fayetteville / Fayetteville Executive Airport DBE
Goal update for Fiscal Year (FY) 2009 and extending through the completion of the Airport Improvement
Project (AIP) noted above, is provided to describe the Airport Projects which are funded in part with
Department of Transportation (DOT) / Federal Aviation Administration (FAA) funds, and to determine by
the federally prescribed methodology the portion or percentage of those funds targeted for contract award
to Disadvantaged Business Enterprises (DBE's) in accordance with Federal Regulations 49 CFR Part 26.
The Goal Update is a prerequisite for AIP grant funding for airports which anticipate receiving more than
$250,000 in federal funding from the DOT / FAA in the 2009 fiscal year.
The 2009 DBE Goal Update revises the DBE participation goal in federally funded airport contracts
anticipated for the 2009 fiscal year, from that originally described in the airport's previously published
• DBE Program Plan and successive annual goal updates. The FY 2009 Goal Update is effective concurrent
with the solicitation of bids through completion of the grant funded project.
Public Participation and Consultation in the DBE Goal Update process is a requirement under federal
regulations at §26.45(g). The updated Goal and Methodology is published for 30 days prior to submittal to
the FAA for approval. Comments on the Goal Update are accepted for 45 days after the date of public
notification of its availability for public review. A number of interested private and public entities were
selected to review and comment on the Goal Update, (see attachment #1 - list of consulting agencies).
Public comments on the updated goal and methodology are incorporated with the submission to the FAA.
Public comments on the proposed FY 2009 Goal will be received until 10/15/08, (see attachment #2 —
comments)
Comments on the FY 2009 DBE Goal Update may be submitted to the Fayetteville Executive Airport's
DBE Liaison Officer by phone, writing, fax, or e-mail to the following:
James Nicholson, DBE Liaison Officer
Fayetteville Executive Airport / Drake Field
4500 South School Ave., Suite F
Fayetteville, AR 72701
479-718-7642
479-718-7646 fax
jnicholson(a),ci.fayetteville.ar.us
•
Overall Goal and Methodology •
Fayetteville Executive Airport / Drake Field (F'YV)
FY 2009 Update
OVERALL GOALS (§26.45)
Goal Period
10/1/08 — 9/30/09
Amount of Goal
Fayetteville Executive Airport's overall goal for FY2009 is: 1 .4%
Fayetteville Executive Airport anticipates one AIP (federally funded) project in FY 2009. The
estimated project costs are $2, 150,000 "Correct Runway 16 RSA Deficiency Phase 11". Thus, the
total projected dollar amount of DBE participation in the projects is: $30,100.
Determination of Market Area
Step 1 of the methodology for determining DBE percentage goal requires an assessment of the
relative availability of DBE's in the local market area. The local market area is the area which •
provides, or is most likely to provide, the firms considered qualified to perform the needed work.
Correct RW 16 RSA Deficiency Phase II, Engineering & Design, Roadway Alignment:
The Airport has selected, and has contracted with a consulting Engineering firm which will be
used to perform a significant portion of the second phase of the above noted project. The
Engineering consultant was selected in accordance with the requirements of 49CFR Part18.36,
Procurement, and as permitted under paragraphs (d)(3)(v), by competitive proposals (A/E
professional services). The Contract with the engineering firm includes a specific Disadvantaged
Business Enterprise DBE Assurances clause stating the firm's responsibility to ". . .create a level
playing field on which DBEs can compete fairly for DOT-assisted contracts."
Construction work consisting of earthwork and fencing is also planned. We used information
from the State of Arkansas Contractors Licensing Board to determine the number of qualified
Contractors available for the project.
Historically, most construction contractors for airport improvement work have come from the
local area, specifically, Washington, Crawford, and Benton County, except that, occasionally a
contractor performing ancillary tasks may be recruited from a further distance. However, the
project being considered involves re-routing a portion of the State-owned roadway which bounds
the west property line of the airfield and intrudes the Runway Safety Area. Thus, State-wide
roadway construction companies will be solicited.
•
• Overall Goal and Methodology
Fayetteville Executive Airport / Drake Field (FYV)
FY 2009 Update
Considerations in selecting Market Area
Correct RW 16 RSA Deficiency Phase II, Engineering & Design, Roadway Alignment:
The project phase consists of engineering, geologic investigation, surveying, roadway alignment
and design/engineering, appraisal and property acquisition, grading, fill and drainage, roadway
bed preparation, and fencing. Due to the extent of the project, additional professional services
beyond engineering and design are required. Many of the tasks to be accomplished need not be
performed on site. It is desirable, but not essential, to enlist skilled personnel who are
experienced and knowledgeable of local conditions. However, professionals certified by the State
of Arkansas are presumed to have the qualifications necessary to perform the work adequately.
Therefore, the selected Market Area for this project phase is determined to be the entire State of
Arkansas.
The consulting Engineer under contract to the airport lists at least one Woman-Owned Business
Enterprise, (WBE), as an associate team partner for airport work. Additionally, a list of the DBE
contractors in the State of Arkansas presumed to meet qualifications for subcontracted work
under the consulting Engineer's contract will be compiled and issued to the Engineering firm.
• The consulting Engineer will be directed to inquire with the DBE firms as to their fitness and
availability for any subcontracted work required by the consulting Engineering firm.
Since the anticipated project consists of re-routing a portion of State Highway 71 , construction
and construction-related contractors for the project may be recruited from the state-wide pool of
Heavy Construction / Highway, Street & Bridge constructors.
Our Washington County, Arkansas location, situated in a central valley of the Boston Mountains,
contributes to an insulated climate for material suppliers. Accessibility to distant material
producers by trans-state highway is limited by mountain terrain and distances of surrounding
rural area.
The available DBE Contractors in the Local Market Area are those listed as being certified DBE
by the Arkansas Unified DBE Certification Program, and listed in the "Arkansas Unified
Disadvantaged Business Enterprise Directory" published July 2, 2008
•
Overall Goal and Methodology •
Fayetteville Executive Airport / Drake Field (FYV)
FY 2009 Update
Methodology - Step I
The Fayetteville Executive Airport / Drake field anticipates awarding one AIP funded project
contract in FY 2009. The project is: 1 . Correct Runway 16 RSA Deficiency Phase H, which
entails engineering, geologic investigation, surveying, roadway alignment and design, appraisal
and property acquisition, grading, fill & drainage, roadway bed preparation, and fencing.
Project No. 1 : Correct RW 16 RSA Deficiency Phase I, Engineering & Design,
Roadway Alignment.
2002 Work Item — Professional Services DBE's in Local All Available
NAICS Market Area Firms'
Code
53121 Real Estate Agents & Brokers 2 548
53132 Appraisal offices 1 142
54133 Engineering services 1 275
54136 Geophysical surveying and mapping 1 6 •
54138 Testing laboratories 1 40
Totals for this Contract 6 1011
* US Census — 2002 Economic Census data
2002 Work Item - Construction DBE's in Local All Available
NAICS Market Area Firms
Code
237310 Highway, Street & Bridge Construction 13 194
238110 Asphalt Contractor 0 203
327320 Ready Mix Concrete Mfg 1 93
238120 Structural steel & Precast Concrete 4 17
238210 Electrical Contractors 2 517
237310 Striping (Hwy, St, & Bridge Construction) 0 48 •
238910 Site Preparation Contractors 1 279
• Overall Goal and Methodology
Fayetteville Executive Airport / Drake Field (FYV)
FY 2009 Update
484220 Dump Trucking, local specialized 7 226
Totals for this Construction Contract 28 1577
Weighting
Roughly 30% of the project expense is allocated to Design & Engineering and land acquisition,
and 70% to construction related activities. Therefore, the tasks associated with each category are
calculated separately and summed.
Calculation of Base Figure
The base figure is calculated as: the number of available DBE contractors as a percentage of all
available contractors in the Local Market Area.
Base Figure = DBE contractors / all contractors
• Base Figure = (5/1011 ) + (27/1577) = 0.006 + .018 = .024
Methodology - Step 2
Step 2 is an adjustment to the base figure percentage from Step 1 so that the updated goal
accurately reflects the actual attainable DBE participation in FY 2009 airport contracts.
Past years DBE accomplishment results data for similar projects are examined and the median
percentage is averaged with the base figure to determine the adjusted percentage goal. Only
projects comprising like work are used for comparison.
DBE Goal Accomplishments - Historical Information
Year Goal % Accomplishment % Project Type
2000 1 .74 0 Access Road Construction
2001 .93 .42 Taxiway / Runway Rehabilitation
• 2003 .73 1 .99 Taxiway Construction
2004 1 . 18 1 . 13 Taxiway Construction
Overall Goal and Methodology •
Fayetteville Executive Airport / Drake Field (FYV)
FY 2009 Update
2005 1 .0 .63 Aircraft Apron
2006 1 .31 0 Aircraft Apron
2007 . 75 0 Planning & Engineering
Median % 1 .0 0 .42
Calculation of adjustment to DBE Base Figure
The calculation of the adjusted figure is determined by averaging the base figure and the
historical median for like projects.
Base Figure + Historical Avg. / 2 = Adjusted Figure
(2.4 + 0.42) / 2 = 1 .4
•
•
• Overall Goal and Methodology
Fayetteville Executive Airport / Drake Field (FYV)
FY 2009 Update
Other Factors
Disparity
Research was conducted to determine if any DBE / small business disparity studies for the region
were available. While no document specifically described as a disparity study could be located
for the region or state, the U.S. Department of Commerce / Minority Business Development
Agency has published a two-page document titled "The State of Minority Business: Arkansas",
which offers some comparative analysis of minority percent of population vs. share of business
ownership and percent of sales.
In broad terms, the brief suggests that minority business ownership in the state remains
significantly less than proportional with minorities in the population. There is no specific
breakout of businesses engaged in professional consulting services, design or engineering.
However, it may be inferred from the overall data that a similar discrepancy likely exists in that
business sector. Interestingly, Hispanic and American Indian & Alaska Native categories
participate in business ownership as a percentage of population of the category at a level greater
than the national rate. Taken with the dramatic increase in Hispanic population in the state over
the last decade, this greater business ownership rate may be indicative of the perceived
opportunities Arkansas offers to Hispanic emigrants, and of the permanence of their settlement.
• Financial Institutions
Research was conducted to determine the number of, and the services provided by, DBE-owned
financial institutions in the state. A listing from the U.S. Federal Reserve of all minority-owned
financial institutions in the U.S., sorted by state, indicates that there is one minority-owned
financial institution in the State of Arkansas; College Station Community Federal Credit Union.
CSCFCU Director, Mr. Woodrow Keown Sr., stated that the credit union made small loans for
automobiles and other goods to local residents. He estimated the typical loan amount to be about
$4000. A report on CSCFCU from the Community Investing Center states that 82% of CSCFCU
loans are consumer loans and 18% are for housing.
Mr. Keown also made a referral to a minority-owned financial institution in Helena, Arkansas,
Phillips County Self-help Credit Union. However, it is not listed as a minority-owned institution
by the U.S. Federal Reserve. Community Investing Center reports that 100% of PCSHCU's loans
are consumer loans.
The information collected on minority-owned financial institutions indicates that these entities
operate with limited resources and focus almost exclusively on consumer lending. As
community-based institutions serving specific community needs, it isn't clear that these
institutions are unable to serve DBE's financial needs or that they elect not to serve the business
loan sector. Rather, it may be that they do not encounter a local demand for business start-up,
• revolving credit line, and capital expansion lending.
Overall Goal and Methodology •
Fayetteville Executive Airport / Drake Field (FYV)
FY 2009 Update
Census Information
The latest U.S . Census Data for Hispanic population in the Northwest Arkansas Regional area
shows an increase of 55% since the US Census in 2000. This is indicative of the continuing
influx of Hispanic emigrants to the area. According to the 2002 US Census Survey of Business
Owners, there are only 143 Hispanic professional, scientific, & technical services firms in
Arkansas. Again, no breakout of firms engaged in Engineering or Real Estate is provided by the
data. The greatest percentages of all Hispanic-owned firms appear to be concentrated in the
service industries. However, it may be conjectured that the Hispanic-owned service industry
business base could be parlayed into better opportunities for higher education in succeeding
generations and thus establish the foundation for future growth in the professional sector.
None of the factors described above were determined to warrant an adjustment to the calculated
Goal percentage. The information does provide insight into the conditions of the local and state
business environment for DBE's. If any conclusion can be drawn, it is that added validation is
given to the choice of Race-Conscious measures in order to promote DBE participation in the
airport's AIP projects.
No other factors regarding the local DBE environment could be determined to be an influence on •
the adjusted DBE goal figure.
Breakout of Estimated Race-Neutral and Race-Conscious Participation
In determining what percentage of the 2009 adjusted goal could be met through
race-neutral means, we again reviewed historical DBE accomplishments for Fayetteville / Drake
Field. FYV did not have any DBE participants in Professional Services contracts on any AIP
projects for the last six years, nor was FYV able to meet its minimum goal for construction
activities. Therefore, we estimate that in meeting our overall 2009 adjusted goal of 1 .46%, we
will obtain 0% from race-neutral participation and 1 .46% from race-conscious measures (e.g.
setting contract goals).
•
NORTHWEST ARKANSAS
• Arkansas Democrat V 05,Axette
IRA i :I WN*K-11prip 11A 171171 RVII 1111[A
ROGERS
'emp®rary runway
at
airport gets grant
City also gets $1 .5 million for taxiway
BY AMANDA O"I'OOLE the secondary landing strip for
ARKANSAS DEMOCRAT-GAZETTE about four years after discov-
ROGERS — Federal Aviation ering a chemical reaction was
Administration grants awarded causing the primary runway to _
to Northwest Arkansas Regional expand, said Kelly Johnson, the
Airport will help.pay for con- airport's director. The reaction
struction of a secondary landing is called alkali-silica reactiv-
strip in Highfill so repairs can ity and is common at airports
• be made to the runway without across the country.
disrupting flights. In April, the airport's board
; The $3.3 million was an- approved replacing aG-footsec-
nbunced Tuesday at the Arkan- tion of runway that had formed
sas Airport Operators Associa- a hump and was pushing into
tion Conference at the John Q blast pads — sections of asphalt
I-Jammons Center in Rogers. meant to keep planes from kick-
The Rogers Municipal Air- ing up rocks and debris when
port also received $1.5 million to they power up their engines.
help pay for a new taxiway. The issue poses no safety
; Officials at the regional air- threat, officials said.
pbrt have been planning for See GRANT, Page 8B
Grant to the existing runway and an
aeronautic study, which will ana-
lyze the descent path that would
• Continued from Page t B be used by pilots landing on the
In the airport's long-term new surface.
growth plans, the secondary It will take three or four years
landing strip appears as a taxi- for the secondary landing strip
way between the current runway to be completed, she said.
and a future runway. "We couldn't be more excited
Because of the,problems with to see this phase funded," John-
the runway, the plans were al- son said.
tered and the secondary landing
strip was pushed up among top
priorities, Johnson said.
• The project is expected to
cost between $40 million and
$45 million.
More than $5 million has been
raised, including the money
awarded Tuesday.
The grants will pay for navi-
gation equipment, improvements
NORTHWEST ARKANSAS
• Arkansas Democrat V(Gazette
TRAVELERS' CHECK
Jty
'�.s.. 1t ttion't nerp much, either. Continental Airlines do-
ROB
o-
ROB I T H Floyd, in fact, still keeps a nates unopened food that's "
map on her desk to give di- left after flights arrive in
rections to people who arrive Houston, giving the food to
New name at Drake Field, thinking they the Houston Food Battle
are at XNA. They aren't hap- Paula Murphy, a food bank
doesn't end py to learn they need to make spokesman, said Continental
y� s a 45-minute drive to Highfill, has provided 32,000 pounds
C0111 l �s 0 the little Benton County town of cereal in unopened bowls
near Bentonville where the " since May 21. The cereal
airport really is. bowls are used in the Back-
You
ackYou know the Northwest The Guru hasn't touched pack Buddy program, a food
Arkansas Regional Airport this airport confusion issue bank effort that involves
isn't in Fayetteville even if since January when U.S. Rep. sending-food home each Fri-
airlines perpetuate that myth. John Boozman, R Ark., sent a day with children.
It's been nearly 10 years . letter to the Air Transporta- What a great idea, but it
since the airport opened in tion Association that asked doesdt appear that the same
Highfill and commercial air- the trade organization to sort of deal will work with
Line passengers still show up notify its members about the XNA and the Northwest Ar-
at the Fayetteville airport to confusion and encourage the kansas Food Bank in Bethel
board flights. use of the words "Northwest Heights. The Guru asked
"It happened yesterday," Arkansas Regional Airport." about that possibility. "
MaryKathryn Floyd, an Em- American Airlines modi- Continental's flights ar-
ployee of Million Air, the fied its Web site, refusing to riving at XNA don't include
real Fayetteville airport's eliminate the word "Fayette- muffins and sandwiches that
fixed-base operator, said on ville" but adding the word are individually wrapped,
Thursday. "Bentonville" so people said Kelly Johnson, the air-
Yep, it's still happening. wouldn't be locked into one Port director. She checked
That's too bad, too, be- possibility; with other airlines and food
cause it made sense that a they carry that isn't sold
In response to BOOZman's toassen ers on one t
name change earlier this year request, Delta Air Lines P g
of the Fayetteville airport 9 and Northwest Airlines said "simply rolls to the next" and from Fayetteville Municipal goes on sale again
Airport, Drake Field, to Fay- they'd notify pilots and flight I I So, maybe this won't work
etteville Executive Airport, attendants about the issue, at XNA, but airlines across
Drake Field, would help. said Sara Lasure, a Boozman the us. would be wise to do
It didn't. Not really, spokesman. in their hub cities what Con-
The Arkansas Highway As best The Guru can tell, tinental does in Houston.
and Transportation Depart- it did little good. A passenger '
ment even changed the road on a recent Delta flight said Robert J. Smith's column about
si a en le of months ago she got the usual "Welcome people on the move in North-
P g to Fayetteville" when her west Arkansas-appears each
to guide motorists to Fayette- flight landed at XNA. Monday. He can be reached at
ville Executive Airport. * * * rsmith@arkansasonline.com.
•