HomeMy WebLinkAbout2009-03-18 - Agendas - Final �CP
• AGENDA
MEETING OF THE AIRPORT BOARD
FAYETTEVILLE EXECUTIVE AIRPORT
1 :30 p.m., Wednesday, March 18, 2009
Airport Conference Room
As a courtesy please turn off all cell phones and pagers
1. Welcome — Chairman Bob Nickle.
A. Comments from the public on items on the agenda.
2. Minutes of the February 11, 2009 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. Museum reports.
G. Maintenance report.
4. Old Business,
A. Rent report from Chairman Nickle, Ray Boudreaux and James
Nicholson.
5. New Business. None
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 Aril 8 2009
•
L
MINUTES
• FAYETTEVILLE EXECUTIVE AIRPORT BOARD MEETING
February 11, 2009
MEMBERS PRESENT: Bob Nickle, David Hollman, Janice Stanesic, Otto Loewer, Richard
Greene, Tim McCarley
MEMBERS ABSENT: Vaughn DeCoster
STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers
OTHERS PRESENT: Wayne Jones — McClelland Engineers, Blaise Sharkey — Million Air
Fayetteville, Terry Lawson — Fayetteville Fire Department, Craig Young — tenant, Tyrone
Rogers — Fayetteville Government Channel
ITEM #1: Welcome - Chairman Bob Nickle.
A. Comments from the public on items on the agenda. None.
ITEM #2: Minutes of the January 14 2009 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. Thanked all the Airport Staff and City Staff for getting through the ice
storm.
B. Director Boudreaux, report on airport activity. Have talked with the Forest Service and
they will be placing their plane in south Texas until mi&spring when it will be relocated to
Drake Field. The Tower was out for 2 %: days, their generator blew up. Our generator worked
except the lights had to be manually switched on at night and off in the morning. King Electric
was here today and made repairs. We will list that in our storm report and get help from FEMA.
We do test our generator from time-to-time, running it about 30 minutes each time. The
Bloodmobile was scheduled here during the ice storm and thanked the one donor, Greg
Robinson, one of our employees. Fuel Sales were up 20% in January over December last year.
The Arkansas Aviation Alliance and the Aerospace Training Consortium would like to start up a
school in June, when NWACC ends their A & P classes. They are considering coming to Drake
Field. There are 1 ,000 people they hope to put into school this year . There will be a lot of
money in Arkansas going to grow training facilities. The FAA and AOPA Safety Seminar held
in the terminal lobby had 173 participants. SkyVenture was a sponsor. This week SkyVenture
became an international flight school, a major step to be an international training center. Letsgo
Tours and Charters has moved in the terminal and have been busy. Said he and Tim McCarley
attended Otto Loewer's speech at the Trade Center in Bentonville.
C. Financial Coordinator Nicholson, report on FBO and Budget. He gave a slide
presentation showing the FBO, fuel and operations' charts and graphs in the agenda. January
operations are better than December 2008; there is usually a spike upwards in January possibly
• due to the sports teams traveling. Fuel sales show a downward trend. The financial page in the
agenda was explained, saying that all 2009 figures are not in the City's system yet, partly due to
revenue received in January and associated Journal Entries for December accounts. There were
some large expenses in December for repairs on the Air Museum's sprinkler system. Those are
1
y
possible reasons the year end figure is not as large as expected. All figures should be in by the
next meeting. Chairman Nickle expressed concerns the Airport is not in the black as much as •
had been anticipated.
D. Senior Secretary Powers, report on T-hangar leases. We had one hangar empty and as of
today that has been filled. All units are rented.
E. Engineer Wayne Jones, report on construction projects. He reviewed the status of the
Runway Safety Area project, and highway relocation, mentioning the American Native Indians
have yet to respond. They said they didn't receive the first mailing sent in early November,
documents were sent again by email in December. It was suggested to stop waiting and go visit
them. W. Jones explained it is the responsibility of the FAA to get comments from the Native
American Indians. They have had communications with Standard Register and Kearriey's, but
the owners of the closed Super Stop gas station across the highway said stay off their property.
F. Museum reports. Director Boudreaux spoke of the recent sprinkler repairs at the Air
Museum, and told of part of the sign on the south end of the museum blowing away.
G. Maintenance report. Maintenance took care of a lot of downed limbs from the ice storm,
did door inspections, worked on the runway/taxiway lights
ITEM #4 : Old Business. None.
ITEM #5: New Business.
A. Discussion: Rent relief for tenants. Some tenants have asked for some relief in their rent
payments to the airport. O. Loewer said there should be a policy to deal with those request,
everyone will want to bail out. Chairman Nickle said we have been considering those requests
on an individual basis. Said he, Ray and James will study the situation and make a report at the •
next Board Meeting. We will have to ask the company for financial information to make a
decision.
ITEM #6: Other Business.
A. Items from the Public. Terry Lawson, Fire Department, suggested having generators for
their building across the field and for the terminal. Speaking of the ice storm said without power
they were unable to keep the fire truck plugged in for an easy start, garage door very hard to
open, except manually, air tanks, and if the temperature had gone lower or stayed lower for some
time, things in the fire truck and building would have frozen, phones didn't work, and the FBO
needed phones and computers for flight awareness. Director Boudreaux said the terminal is on
the FEMA list for generators, and suggested Terry check with the Fire Chief about generators for
the fire stations that were without generators.
B. Items from the Airport Board. Director Boudreaux called attention to the articles in the
back of the agenda, regarding proposed security changes for general aviation flights, saying he
would put the info out in the tenant newsletter.
Meeting Adjourned at 2:35. p.m.
David Holtman, Secretary Date •
2
Tayvet e i e
• A R KA NSA 5 AVIATION 8 ECONOMIC DEVELOPMENT
FAYETTEVILLE MUNICIPAL AIRPORT • DRAKE FIELD
March 12, 2009
MONTHLY REPORT
Aviation and Economic Development Department
Fayetteville, Arkansas
February, 2009
AVIATION:
• ACTIVITY: February 2009 operations were up compared to last month and last
year. February has traditionally been a good month most probably due to the U of
A associated sports teams' charters. This represents two months of growth and is
a good start for 2009, the best start since 2006. Fuel sales were up over last
month, but still well below last year.
• RUNWAY 16 RSA IMPROVEMENT PROJECT: The Environmental
Assessment Study of the roadway realignment has been issued for review by the
public and the Public Hearing has been set for March 30 in the Airport
Conference Room in the Terminal Building, beginning at 5:00 with an Open
House and 6:00 for the Hearing itself. Please stop by the office if you wish to
review the draft document. The draft documents are also on display at the
Fayetteville Public Library, at the City Clerk's Office/City of Fayetteville. and at
the Greenland Public Library. There don't appear to be any "show stoppers", so
we are hopeful that the final can be published very soon after the public hearing.
We met with Ed Agnew, Manager, FAA Southwest Region ADO. Since our EA
was not yet complete and filed, our project did not qualify for the stimulus money.
He reiterated that our project remained in the program with a high priority and
will receive funding this spring so that the project can proceed as planned.
• AIRPORT BLOOD DRIVE: The next bloodmobile will be March 31 , 2009 at
the Terminal from 9:00 to 12:00. Stop by and help your community. A blood
transfusion is administered to patients here in the Ozarks every five minutes.
• FORMER AVIATION TECHNICAL SCHOOL BUILDING: The Arkansas
Aviation Alliance Director and I will meet with RTI in Springdale in March to
discuss the potential for continuing the Airframe and Powerplant (A & P)
program. The initial contact was not very promising, but we are continuing to
investigate the opportunities. I had contact with our Certified Repair Station client
and they are very near signing a lease. Their CPA called and relayed that it looks
like they will enter into an agreement by the end of March.
• FAA FAASTEAM WINGS SEMINARS SCHEDULED: More seminars are
being planned, no date yet, but exciting things are coming. Check the
• www.faasafety. gov website.
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/government/aviation
airporLeconomic development@ci.fayetteville.ar.us
• WEST FORK RIVER RESTORATION PROJECT: The West Fork .
Restoration Project met with James and me pursuant to restoring the banks along
our portion of the West Fork of the White River. The project will use natural
rocks to create a channel that will prevent erosion of the river banks. James and I
toured their initial project in West Fork. Our portion of the repair will happen in
2010.
• TERMINAL HVAC PROJECT: We opened bids for the project on Friday,
March 13a' , and all bids were more than the budget. The project must be re-bid.
We will receive bids again March 31". The engineer has made some
modifications that should help the project come in under the budget. I will travel
to the State Aeronautics Commission Meeting March 19`n to present our case for
an 80/20 grant. We had planned to award the project at the March 17`s City
Council Meeting, but must wait until next month to award if we get good bids on
the second round.
ECONOMIC DEVELOPMENT:
• ECONOMIC DEVELOPMENT STRATEGY PROJECT: Mayor Jordan is
encouraging all citizens to participate in the Fayetteville Forward, Economic
Development Summit to be held March 31 , April 2 & 3 and April 4. For more
information and to sign up to participate, go to
www.fayettevilleforward.accessfayetteville.org. Participants are encouraged to
attend one of the first three sessions and the final Saturday session. The Summit
will result in a roadmap for the future.
• CHAMBER OF COMMERCE HEALTHCARE/MEDICAL GROWTH
COMMITTEE: I have been asked to participate in this committee of the
Chamber of Commerce to further investigate the potential for creating a
Treatment Center for Environmental, Occupational, and Toxic Disease. The
committee has had two meetings and is just getting organized. The feeling of the
group is that there is a critical mass of treatment institutions and facilities that
could easily be coordinated into this specialty.
Respectfully Submitted,
Ray M. Boudreaux, Dire or
•
. . of .
• . :
. . . . . :
�� � ��� a �� � �� �� Bi is ���I� ��io ���ill ���� �I� '� i��olll ��A.�I�IIIIL���I01� �9.�i�lllll �i���� ��.����o► ��o,
I � III � � I I,� I I
mom--®®�--�--
. . .
o
II e u I 1 o II II � l I �I �aII�J�O II�IIL I� �I�I�I III�III I 'I�III� II III '1011ll �I
Io11 1�
sr�Q•"�m®mm�'T''��®mom®
rs,–foci—-^�aaaaaaaaaa
• ' • 11 11
� w
f r1i
olll
► �I s�ll[I I SII II
�m��mmoom�mm
�om�mm�o��mmm
�_m®mmmmm�m®m
�mmmmmmmm�om�
�uOIIIC� le��l� � �I III I I I I I I I Y� I
®�mm�mmmm�m�
m®mm®mem®�
m®�mmmm�®mom
ALM
FBO Statistics: February 2009
Million Air Category Gallons % Category % TOTAL
Jet Fuel sold to FYV-based customers 19 ,067 53 .4% 43 .5%
Jet Fuel sold to itinerant customers 161643 46 .6% 38.0%
Total Jet Fuel Sold 35 ,710 84 .6% 81 .5%
100LL sold to FYV-based customers 31073 47 .5% 7 .0%
100LL sold to itinerant customers 3 ,403 52 .5% 7 .8%
Total 100LL Sold 6,476 15 .4% 14 .8%
TOTAL ALL: 42, 186 96 .3%
City Category
100LL sold Seff-Serve 1 ,311 80 .6% 3 .0%
91 Octane MoGas sold Seff Serve 316 19 .4% 0 .7%
TOTAL ALL: 11627 3 .0%
• 100LL
100LL sold seff-serve 11311 16.8% 3.0%
100LL sold Million Air FBO 61476 83 .2% 14 .8%
TOTAL ALL: 71787 17 .8%
2M Qffnd mft Fuel SON$ by Pw mtc#T"o FudSaboby WbW MW
m
e�vaw
,o
IIIHiYRII
O�im1.6Ti 1]11
R1HiWf10L 0
7211 .1W f® Wi MH MY .W 1L N6 BF9 6I 1W QL
•
• e EXECUTIVE AIRPORT
OPERATING SUMMARY
MONTH ENDING 2282008 AIRPORT BOARD
OPERATING ACTIVITIES 2007 2008 2008 2009 2009 2009
Actual Budget Actual Budget Budget YTD Actual YTD
REVENUE
Rents 8 Leases 430,259 470,000 469,292 498,200 83,033 75,422
Aviation Fuel 153,478 166,000 126,272 140,056 23,343 14,399
Contract FBO 72,966 110,000 107,682 108,848 18,141 26,937
Miscellaneous 5,121 3,000 16,669 2,500 417 1 ,747
INCOME RECEIVED FROM OPERATING ACTIVITIES 661,824 749,000 719,915 749,600 124,934 118,505
EXPENSES
Personnel 301,229 314,262 313,187 327,808 54,635 63,429
Materials S Supplies 20,276 22,852 23,213 30,712 5,118 484
Aviation Fuel Purchases 86,174 110,000 72,987 85,000 14,167 8,543
Services B Charges 176,146 184,308 167,429 172,818 28,803 16,091
Cost Allocation to General Fund 115,908 65,976 65,976 8,830 1,472 . 1,470
Maintenance 67,446 55,950 33,990 56,702 9,450 3,318
ATC Tower Costs 23,127 24,341 - - - -
Interest on West GA Hangars Loan (accrued) 17,500 35,000 35,000 32,667 5,445 5,445
INCOME USED FOR OPERATING ACTIVITIES 809,806 757,689 711,782 714,537 119,090 98,778
NET INCOME FROM OPERATING ACTIVITIES - GAIN I (LOSS) (147,982) (8,689) 8,133 35,067 5,845 19,727
INVESTING ACTIVITIES 2007 2008 2008 2009 21179
Actual Budget Actual Budget i Actual YTD
NON-OPERATING INCOME
Interest on Investments 26,326 24,000 3,523
Other - Unrealized Gain (Loss) 5,480 -
CAPITAL IMPROVEMENTS EXPENSE
• 05029 AIP #33 Master Plan Update
05034 AIP #31135 W GA Apron
05046 AIP 021 Airport Expans Equip (Airband Radios) 2,677
06020 SkyVenture Impmvemems Rebate 5,000
06021 Airfield Markings - Repaint
06023 West GA Hangers
07024 Runway Approach Obstruction Study 45,000
07039 AIP #38 Correct Runway 16 Safely Area Deficiency 130,640 27,260 8,918
07039 AIP 037 Correct Runway 16 Safety Area Deficiency Phase II 7,193 170,407 -
08055 Replace Airport Fence - Flood Damage 9,200 -
08074 Airport HVAC Improvements (Temlinal) 4,820 82,190 -
USED FOR INVESTING ACTIVITIES - - 172,724 255,857 5,395
FINANCING ACTIVITIES
LOANS
Principal on West GA Hangars Loan - - -
Payments on Loan Principal (accrued) (46,667) (46,667) (7,778)
GRANTS STATE / FEDERAL
Received from Dept Aero - W GA Hangars -
Received from Dept Aem - Re-Striping 73,448
Received from Dept Aero - Obsbucbon Study 45,000
Rcvd State Grants on Fed Projects -
Due from State Grants on Fed Projects - 6,417
Received from AIP #38 ConW RW16 RSA 64,623 57,297 57,297
Due from AIP #36 Correct RW16 RSA 59,485 -
Due from AIP #37 Correct RW18 RSA Phase It - 69,993
Replace Airport Fence - Flood Damage FEMA Reimburse - 8,050
NET INCOME FROM FINANCING ACTIVITIES - 195,689 87,040 57,569
AIRPORT CASH BALANCE 595,809 627,107 493,356 899,008
�URRENT ENCUMBRANCES (CAPITAL)
NICE TASK ORDER #3 - Engineering AIP#36 18,342
MCE TASK ORDER #15 - Engineering AIP037 170,407
NICE TASK - HVAC Assessment 780
LONG TERM LIABILITIES
Hanger Loan Principal 645,555
AIRPORT CASH MINUS LIABILITIES (136,076)
raye nevi. to
gNNAN5A5
OPERATING ACTIVITIES BUDGETED 2009 BUDGETED 2008
REVENUE
RENTS AND LEASES
Rem 187800 157100
Rem-Terminal 67300 64300
Rental on T-Hangars 173300 175000
RentaIFAA 30000 31000
Ground Rem Freight 37000 39000
Restaurant Fees 2800 3600
498200 470000
AVIATION FUEL
AVGas Revenues 80856 107600
. Aviation Fuel (Flowage Fees) 46200 51400
FOO Sales Tax 0 0
87 Mogas Revenue 13000 7000
140056 166000
CONTRACT FBO
Rem 108848 110000
108848 110000
MISCELLANEOUS
Misr 2500 3000
2500 3000
TOTAL REVENUE 749604 749000
EXPENSES
PERSONNEL
Administration 171544 170016
Maintenance 156264 144246
327808 314262
MATERIALS & SUPPLIES
Administration
Office supplies 1525 1525
Copies 8 coder lease 2500 2500
• Clearing supplies 100 100
Chemicals 2430 1230
Minor Equipment 1000 1000
Fuel 460 350
8015 6705
Maintenance
Office supplies 100 100
Cleaning supplies 1657 1657
Chemicals 2770 2770
Minor Equipment 1220 1220
Signs 2900 2400
Fuel 14050 8000
22697 16147
AVIATION FUEL PURCHASES
Gasollne 10000 10000
AVGAS 75000 100000
85000 110000
SERVICES 6 CHARGES
Administration
Pudic Notification 850 2850
Publications 8 dues 2280 2260
Travel & training 1090 1090
Postage 200 200
BUemees meals / expenses 500 500
Annual audit expense 2200 2100
Utilities 105177 86420
Telephone expense 5386 8443
Insurance vehicles / buldirgs 12067 12302
Seg Insurance 500 500
Insurance personal liability 3200 4343
Contract services 2150 1039
Bad debt expense 500 500
Credit card service charge 2500 2500
Motor pool charges 311 261
Replacement charges 860 1009
Shop overhead 163 131
Shop overhead insurance 90 103
Air Museum expense 5000 5000
Promotional activities 2500 2500
147524 134051
Maintenance
Uniforms personal equipment 2476 2200
Publications & dues 35 35
Travel & training 150 150
Equipment rental 1000 1000
Comma services 4925 4925
Motor pool charges 6574 6981
Replacement charges 7683 12525
Shop overhead 2029 2008
Slop overload Insurance 422 433
25294 30257
GENERAL FUND COST ALLOCATION
Administration 8830 65976
Maintenance 0 0
8830 65976
MAINTENANCE
Administration
Office machine Maintenance 200 200
Small equipment maintenance 200 200
400 400
Maintenance
Building & grounds maint 44873 43950
Radio maintenance 1229 1400
Vehicle & machine maint 4500 4500
• Lighting equipment maim 5000 5000
Small equipment maint 700 700
56302 55550
ATC TOWER COSTS
Administration 0 24341
0 24341
INTEREST ON W GA HANGARS LOAN
Administration 32667 35000
32667 35000
TOTALEXPENSES 714537 792689
c
m L .m
U.
O @
oma{ @ E t c c
C N U N N N@
E C = =(a CoN t: O V
U 300cr� � � � �
9 @ L L
co
L CC
O O
O
U
d
N 'O
'O @ N
) @
y m V
O m N O
0. N r
lil D) m C C C C C C C C C C C c c c C C C a
.0 .0 .0
@ @ @ @ c @ @ @ @ @ @ @ @ @ @ @ @ @ C) d N d
Q T � @ � � -7 � » ? n n ? OLL LLLLLL
W @ E to aO Co ' W NC) - to coO N c7 CO r" m � '= N
V U C? �- � � .- NNN NN NCp
Z « 0 N
Z m m C e C c N N m N N N N
Z 7 C C C C C C C C
W m 7 77 7 7 7 7 7 7 7
0 0 0 0 0 0 0 0 0 0
Z ro R' W LL' s
Q «
> CL
0
>
@ @ Q fN r E >0
y @ E@ O N C N O O U x 7
F m y o@ O cE =0c @ a @ U) c a N N N
y N w d C7 c m O o@ d r v
N Y O N N
cy O @ _ X C
Vy W ~ C C LL U C € OO l0 .J �' N L) a W O
E c 7@ N U N ' N N 'D LL y N J a) O E@ _
c @ K mC-4 Ja) CL cr
CL U U @ N c c L 0 LL E a c = o N N o CL GO) M 0 0 o r to
SSL d � Y - 7 @ o E
CL . o U 7
— EFm @ E = co o «7 cm X = @ c 7 = m
YO L 7
N CJ 'X 7 � � OOL N O N 3 LL CL 7Q = a J @ �
O m
2J UF@- vLLv ` LL ` 'O v N c v 7 0@ ~ U v m
o
— O -DIV ON N yC) N C)N NWI
N
Q m U O W LL _ ' O r N M R U) O C7 V l0 CO n CO O) O r N CO V IO mMn CO
(D O0 NNNNN
co co CD CD CD co c0 CD tO CNO cND O0O co (D fMOO
N
d
O
9
N
C
O cl
«. 7
N C
O cl N
d U
E . c E
O y O
� U
O
U 9 U
O
C " C
m 'c
7cr, 7
v my
ami m ami
m m
a a a a0 M
m l9 •
y y d y m `m `m M m m `u
LL LL LL LL
CL
In
7
O c
O
dOL
c 7 U) N Z
O N U) �_ N
Q 0 V a ¢ c m cl
N
c O O p m L
?i 3 O = m g
N L d Y O O E c m
CF, C 0 0 0 N 7 O
L J c O m 7 N O LL 0 7
O m N
c 3 m N m V 0 ¢ m ~ � O
N N r C Y C
O` .X m m m 0 0 O ON .
Q F C m m CD N
w V •
•m 'm yCl Cl is m m 'm 'm m m
N N N N N N in p N N N N d
a rn
O O N C9 7 t0 (D f� 00 OI O N
K C 'O V V R V a 710 t0 10
(D co t0 fO (D c0 tD (D (D tD tD (D cD (D
Tayve e;i e AVIATION & ECONOMIC DEVELOPMENT
A R K A N S A S FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD
MEMO TO THE AIRPORT BOARD
TO: Bob Nickle, Chairman Airport Board
Airport Board Members
FROM: Ray M. Boudreaux, Director, Aviation and Economic Devel ment
DATE: March 17, 2009
SUBJECT: Discussion re: rent relief for Million Air and SkyVenture
DISCUSSION. James and I have reviewed the budget for both Million Air and SkyVenture in
order to discuss the request for relief. Million Air, Terry Cross, said that they "need rent relief
in order to stay here." Mark Frankum relayed that he and Kathy have not taken a pay check in
months and that he has just about depleted his savings. Both companies are in stress and of
• course, we want them both to stay at Drake Field.
SkyVenture Sales decreased from $632,638.40 in 2007 to $536,695 in 2008.
Million Air's 2009 budget places the operation at a $31,924 loss for the year. In an email from
Terry Cross, Million Air Corporate Director of Operations, he reported that the company had
lost "more than $300,000 (income from operations) during the past 31/2 years. I am bringing this
to you as a top priority to find a mutually equitable solution so that Million Air can afford to
continue its operation." I have attached a copy of his email. I have also included a copy of their
09 budget and the budget and expense statements for 07 and 08.
There is not much room in our budget to offer much in response. We have cut our expenses
every year for the last three where we can. Revenues have increased but mostly in fuel sales
revenue, but it costs more to buy too. The City has dramatically reduced our cost allocation to
help us out and that has made a significant difference.
Following discussions with the Chairman of the Board, we suggest that we decrease the rent on
the two new hangars by $500.00 a month through the end of the year. This represents $4,500.00
decrease for each business through the end of 2009 and an increase in costs for the airport of
$9,000.00. We planned for the Big Hangar to be leased this year and that has decreased our
revenue potential. Without that building being leased, the potential for a second year in the
"black" looks bleak.
4500.SOUTH.SCHOOL AVENUE, SUITE.F . AIRP_ORT_TERMINAL.BUILDING_FAYETTEVILLE AR_72701—__ __ . . _
479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/governmentlaviabon
airport_economic_development@ci.fayetteville.ar.us
(2/1012009) Ray Boudreaux - Million Air Fayetteville he Way Forward _ Page 1
• From: 'Terry Cross" <tcross@m ill ionair.com>
To: <rboudreaux@ci.fayetteville.ar.us>
CC: "Blaise Sharkey" <bsharkey@millionair.com>, 'Terry Cross" <tcross@millio...
Date: 2/10/2009 8:33 AM
Subject: Million Air Fayetteville - The Way Forward
Thank you for your time and discussion. Let me reaffirm that Million Air enjoys doing business in
Fayetteville, and we are hopeful that we can work together to ensure that the future for each of us is
bright. We appreciate the opportunity to be Fayetteveille's first and last impression to your visitors.
Even though our success has been great by many measures; customer satisfaction, fantastic employee
performance, volume and activity growth and other, our financial performance has proven to be far less
than forecasted. In fact, we have lost more than $300,000 (Income from Operations) during the past 3-1 /2
years. I am bringing this to you as a top priority to find a mutually equitable solution so that Million Air can
afford to continue its operation.
In the interest of offering alternatives for your consideration, I suggest the following interinm solution:
1 . Revert our FBO Rent to Year 1 amounts, effective February 1 , 2009; and ro . �Jd 248
2. Revert our Hangar One rent to Year 1 amounts, effective February 1 , 2009; and Al , AU0 2do'
3. Reduce our Hangar Two (newly constructed) rent $1 ,000 per month, effective February 1 , 2009; and NO '
4. Grant a fuel flow fee exemption to the first 500,000 gallons delivered to customers that are not based at //o
FYV (collectively referred to as 'Transient Customers"); and (y oo OW
5. Fix these amounts until our annual (calendar year) fuel sales volume exceeds 0 gallons; then
6. FBO and Hangar One and Two rents will revert to the amounts described in lease documents for Yearoe�
5 (e.g. 2009) and adjusted for CPI increases effective 2010.
• For the record and while consideration to this proposal is being given, 1 want to remind you and the Airport
Board that we continue to subsidize the fuel purchases of three major tenants. Their fuel purchase and
service rates are FAR BELOW market rates. Annually, these subsidies account for more than $50,000
(Income from Operations). Remember that we have been honoring these prices for the sake of the
agreements that preceded Million Air's operations.
Thank you in advance for your time and consideration.
Have a great day.
Terry R. Cross
Chief Operating Officer
Million Air
8501 Telephone Road
Houston, TX 77061
713-640-4000
866-329-1104 (fax)
tcross@millionair.com
•
V
Q� � SOO ti nNVOf tO tOM Q01p0 � OS QNSQSS Sb8 SpSNOSSOOSOQQ bNOOfro0000POOP q
O NNNb ' N fOgM W• fri W p'1gNgNqO V' Q N .y b10 A b (pNO V MMN4NNbbppSN N N N b O N q N O T b b .+ m N A .n b r P W g q n M O N r b 06 T ^ P n A M H r ^ N r N
0
N •Gb A NQ Nq NDN N M {p O .yN {p AN
p N p W q
r
O S m 0 O O O O O O O g 0 O b 06 N O N O g O N N O S O 0 0 S S N O N S O Q b b P O O S OO O S N n
b N A N N A n A fp N GO b N N O g g N' N M O O rOr N q N
OG OJr fO q IO .n � W % ON -N rOr M IpApbNMgN N N NMbbM .yN A q
N {pM N ONM A r M N M N q .yN y rbr (p
y p q r r h
4 O OO O -� � OONN b WHO aOO OAOq NNO � OpONONppOr �p epp O QN O
Q N N N f0 Q q A b N A N N I N A A A N S S S b O O N N O O O N N A S S S S N S y N T
b r W .+ n b n 0 M M q O N N r N rl O r M b n p b N M g N N O N N M b {p M O r N VVV A O
N IpM N ONQ b rclN r T N M N pltiN y r r r1p .v A
O q O N " N n
Z r N r
O NQ O P� 00wwm MpW "Na Q�Q " OON NNO Oq 00 NOOQOpOrep �OQ88 8O8QQN q
bO O I Ow MM OObNANyNWrOOA � CISOp � NM � NNNONONNNM1010 � O .N-iNVn O
N r M N A O M' q n N O N N r V
y N Ipb N OONN
P PM y .-1 M T q
N (s NN i r r .n tp
V Dq n
8 N p p N p p oONOMpp op pp o pp ppQ SS 88
O N O N A O N m (OSI N N O b N N N ^ N O S A m M O O rQ O b O o N N N 0 0 8 N (V N M b b S V . S O N N
r 06 N q p q M M r_ P O N N r C
I': 10 b O O Q p q N N r M N M Ip q .� N
y M N trD b M A
N N N 8 /� M Q p Q pp O pp 8 8 8 p p Q
�+ Mb M QNOIM NM grj tONNNBN q. OOnmM O � ONOmNNNONB, N NNMtp88 $ R8 $ q
O 1O M OpT 06 0; rMN rrM N M y1 *6 p r r rbr (p
a r r
O p O O O M p N 0 0 0 N p M b M O Q O g O q Q N N O p p Q O Q Q N O O p O s b 0 0p N pp 06
^ O N N N Q O M T N O " N A N 8 N M N A O A A M O O A O b O O N N N O O y M N O O O r O q M
Q N PT 100N Nr MrOr Cf bAgtONMgN NVV N . NMb10M A M
N M N ODM � q ti � N r M r M N MrN y r r tiler N
b p A
N N
qOr MyV Oq (QO OAN 0M 0MNMNNO O r Qb A O O A O
pOr g p MNA O QOp ApO A pO Otp O O NN O p NM b bNMnQ bOO OOO MpO OOO NrO NpO Q N n
td Lr; ^ OyM MM N 061; C4 ti -;ti qb
p A
• N O O Q N n 0 0 0 0 N .� Q MONO Q O N O N O N NO m 0 8 0 0 0 N O O O O Q
mONMTN g � NON yjjN " NA AAM MObM GO NNCO GO `�' MN A yjN q
rM O Q (D M Nrt rC4 M bA q tea N NTMbTI rN A
A 1006 N ONM � N r � N .y M N T N 06 1; ti r
H q r A A
O O Q O A O O N NM Q MONO QQ O N O g QQ N N O pp QQ O O p N O O Q Q b b Q p O O O O O O N m
8 N $ A q P M A N r $ VNO y 8 N O N A 0 A A M S O A 0 p O O N N N O S y N N r A 0 0 0 O C O q
1prMVVV N NNb q Nr NrOr M 1ONgO " Mm " VVV NMbbTOrNOn M
N C6 06 OObQ d NC4N 1; M N MrN V; r r .i td .i td
a M M Q M n
Q� N 88 N 8 QQ pp pppp ppOO pp ppQ pQ
O P MO P NpPMOP 01B, .Q-� NNN8NNNOOAmM OOmONOgNNNON0NN NMOwm
OO8NOSn Q
1006 O ONp � 06A C6N 7 N M N 06tiN .Qi .+ tp .r b
Omqq�' 8r p 8 N r Qp p p p Q p Q Q A
o M O 1O b Q N M MA M N N N 8 N g N o O n m M O q
rS N m O N N N O O 8 N N NMWOM n O S N S 8 pnl N
a M M 06 M 09 ObQ OA M NT In M6 .yN ^ rte .+ Ip
y M q N n
LL "�
O O N O N O;O 0 0 0 N MONO
Q O �+ O g O N N 0 0 0 8 0 0 0 N 0 0 0 0 b b P O O O O N O O N N
M M w N M V NON r�jj N Q N A G O A A M O OO A O M G G C C N N N G O N M N A O O C O G O CO O q v
r M M b Q q q N .-1 N r O r M O N O W0 M m m N N M W O M V r " O A
m 1OM O ado N0 C6 Ni M N T N 06 N ti r 1; kd (np
N r
ny
S 1 3 c
o
O V 06 LLow 7
6 N NNN4 n
y a V c
}�. Y p� C a G 0. LL G GG Q V
L0 u w 1L U ESay' � � waa �` mSB ;,
0000 ❑l V d y y ME . 1G. gyp( O a7 J1 p V
u y ay S LN O U M 1Ojl N S Gia N y Cp N S A O V V V.N N
• _ d1
p q Eo 'n ca 0
V V
� eoV '@
LLoxo �' LL � 'b '° < aa' �Bmmvoo' ` 13' LLs5� fop. athaaaaNx � d3 � � � � » 'ao
y0080
LL 88800088888888888000000
_ p
SpOOgN 00000
P b m S VO nI T M C p Q N N N b tO b b p 06 06 06 01 O1 0 0
O a Q Q Q Q M V N N N Ip b b b b A A A A A A A A n A A A A A A A A A A A A n A n n n A A A n A A A A g q
e g N mgi 'ory
• .. m Z
N N N
b p W P P W
10 • O N Of 01 P
W P Z
m N p
o N N N #
m b O ab00 o0b
O N Z
N N N #
1O N NM .y 01 • • \
•Qi O] N
06
P M p
N N N #
m > O B O O P
N O QbOI
Q m p
Q N N N #
tbO m y LA Yi I
b VV NI'1 � Q
b m N y
,r ry p
p N N N #
8 O Q N p
NLeiN M ti m • • �
b N ry
cri
m ry p
N N N #
Of fO Q f� N N m • .
y •6' 1� N N cq
b N N Z
m ry
.. p
M N N #
• a 00 g ng � n
P N V m .+ i0 0
m m Q Z
N p
N N N
#
N W O OJm N .y
P G b rj
Q r O
Q N p
N N N #
p b 8 QDJ
T YN .r �q \
Q ry p
p NNN #
h f0 O V n � Ybi .
b N V ry .ti Q
�+ N N Z
Q ry p
o N N N #
O b 8 Mn b Q
ry PN .rO ' O
ry Q b Z
P N
p
#
N N N
O
6
Y
E a E
Y {%Y
• v oYa � u° u5 '39 a o Yobs
o. > of mmmv
x uzuaaam r- z x uzu $ a $ z
. :I
GO FAYETTEVILLE, LLC
• Statement of Income
For the two months ended December 31 , 2008
Current month Year-to-date
Variance
Actual Budget Actual Budget Fav/(Unfav)
Revenue
Fuel sales $ 105,664 88.4%1$ 240,250E 2,290,594 92.1% $ 2,831 ,125 (540,531)
Facilities rental income 7,325 6.1% 5,700 71 ,428 2.9% 60,300 11 ,128
Other income 6,583 5.5% 2,000 125,643 5.1% 21 ,000 104,643
Gross revenue 119,573 ioo.o% 247,950 2,487,665 10o.m6 20912,425 (424,760)
Direct operating costs
Fuel purchases for resale 68,243 57.1% 172,550 1 ,617,558 65.o% 2,050,480 432,922
Fuel flowage fees paid 3,104 2.6% - 47,291 1.9% - (47,291)
Credit card processing fees 1 ,577 1.3% 2,403 32,996 1.3% 28,311 (4,685)
Other direct costs 0.0% 0.0%
Total direct operating costs 72,925 61.0% 174,953 1 ,697,845 ee.3% 2,078,791 380,946
Gross margin 46,648 39.D% 72,998 789,820 31.7% ,, 833,3,634 . (43,814)
*:General and administrative expenses 46 tX�
Salaries and benefits 34,649 29.o% 27,991 374,869 15.1% 332,361 (42,508)
Equipment rent 6,724 5.6% 5,500 72685 2.9% 66,000 (6,685)
I p Business service fee paid 3,079 2.6% 3,000 36,553 1.5% 36, (553)
SPF fees paid 3,000 2.5% 2,900 35,700 1.4% 34,800 (900)
Communications 919 0.8% 11288 8,128 o.3% 15,451 7,323
Dues and subscriptions 1 ,255 1.a% - 4,625 o.2% - (4,625)
Fuel - FBO equipment and vehicles 602 0.5% 700 7,865 o.3% 8,4K 535
Marketing and promotional 516 0.4% 874 7,564 0.3% 10,488 2,924
Office supplies and expense 1 ,227 1.o% 1 ,500 18,828 o.e% 18,250 (578)
• Utilities 1.4% 1 ,300 13,546 0.5% 13,506 (46)
Facilities rent ` 10;969 9.2% 8,970 107,687 4.3% 107,640 (47)
Repairs and maintenance 1.8% 600 3,681 0.1% 7,200, 3,519
Automobile and equipment expense 10 c.o% 8,982 0.4% (8,982)
Uniforms and supplies 476 0.4% 200 4,692 0.2% 2,400 (2,292)
ti4 Travel and entertainment 1 ,071 0.9% 500 19,369 0.8% 6,000 (13,369)
Aircraft rental - 0.0% - 0.0% -
Training - 0.0% - 3,604 o.1% 2,000 (1;604)
Legal and professional fees - 0.0% 150 2,925 o.1% 1 ,800 (1 ,125)
Depreciation expense 1 ,795 1.5% 573 21 .540 0.9% 6,876 (14,664)
Amortization expense - 0.0% - 0.0% -
Insurance expense 4,796 4.0% 5,000 46,866 1.9% 60,000 13,134
Bad debt expense 31 ,187 26.1% - 59,658 2.4% - 58) -7
Property taxes - 0.0% 17 - 0.0% 55
Other expenses (12,385) -10.4% 542 (8,766) -0.4% 6,505 15,272
Total general and administrative expenses 93,618 78.3% 61 ,604 850,602 34.2% 740-.M (109,731)
Income/(Loss) from operation (46,970) .39.3% 11 ,393 (60,782) -2.4% 92,763 . (153,545)
Other revenue/(expense)
Administrative fees to REW Investments (5,000) .4.2% (5,000) (60,000) 2.4% (60,000) . -
Interest expense (48) o.o% (804) 0.0% (9,648) 9,480
Penalties and late fees 0.0wc 0.0%
Total other revenue/(expense) (5,048) 4.2% (5,804) (60,168) -2.4% (69,648) 9,480
Incomebefore federal Income faze E (52,018) •3.5% 6,589 E (120,950) 4.9%1E 23,115 (144,065)
•
These Internally-prepared rhanolal statements are unaudited
and are Intended for the use of management only.
GO FAYETTEVILLE, INC.
• Statement of Income
For the two months ended December 31 , 2007
Year-to-date
Variance
Current month Actual Budget Fav/(Unfav)
Revenue
Fuel sales $ 344,462 $ 1 ,952,906 $ 2,779,940 (827,034)
Facilities rental income 13,665 420211 47,313 (5,102)
Other income 6,710 63,964 63,964
Gross revenue 364,838 2,059,080 2,827,253 (768, 173)
Direct operating costs
Fuel purchases for resale 203,376 1 ,321 ,871 1 ,974,690 652,819
Fuel storage fees 6,429 51 , 155 - (51 , 155)
Fuel clean-up costs 1 ,080 (1 ,080)
Other direct costs 15,240 15,240
Total direct operating costs 209,804 1 ,374,106 1 ,989,930 615,824
tl�Of
Gross margin 155,033 684,975 837,323 (152,348)
General and administrative expenses
Salaries and benefits 65,289 347,799 391 ,267 43,467
'� CO Franchise fees paid
k2
OL Equipment rent - - -
�{L Business service fee paid 6,000 36,000 36,000
SPF fees paid 51800 34,800 34,800 -
• Talent Plus costs - - - - -
Marketing and promotional 3,576 18,083 10,488 (7,595)
Office supplies and expense 5, 192 24,413 33,706 9,293
Utilities 834 12,157 15,455 3,298
\ Facilities rent 18,996 68,433 65,550 (21883)
Repairs and maintenance 2,306 7,043 39,000 31 ,957
-Automobile and equipment expense 17,861 102,219 68,400 (33,819)
Uniforms and supplies 4,782 32,264 2,400 (29,864)
Travel and entertainment 6,008 17,039 30,000 12,961
Aircraft rental 1 ,385 1 ,385 - (1 ,385)
Training - 1 ,233 3,000 1 ,767
Legal and professional fees 2,000 1 ,800 (200)
Moving expense
Reimbursed to FBOs - - - -
Depreciation expense 3,590 22, 171 61876 (15,295)
Amortization expense -
Insurance expense 10,003 58,345 6,936 (51 ,409)
Bad debt expense 22,144 22,144 -
Property taxes - - 5,200 5,200
Credit card and bank fees 4,251 30,002 - (30,002)
Licenses and permits (297) 129 (129)
Other expenses 4,056 11 ,465 505 (10,960)
Total general and administrative expenses 181 ,776 849,125 751 ,383 (97,742)
Income/(Loss) from operations (26,743) (164, 151) 85,940 (250,091)
Other revenue/(expense) ,
• Interest expense - _ (9,648) 9,648
Penalties and late fees
Total other revenue/(expense) - - (9,648) 9,648
Income before federal income taxes $ (26,743) $ (164,151) 76,292 (240,443)
These internally-prepared financial statements are unaudited
and are Intended for the use of management only.
noyy y, F :: r
� -
At
'��' FS *+
6
bx y
o op
� . µ
51
"^ or. �`` --ca 'IF
too oo
ON
p 1 .11 4.�
a
G � 9'— �'"
a
� e
N _
•
•
•
s _ •
60 !' THURSDAY; MARCH 5, 2009
When the atrnnes moven w
p ra ke Field thairport, many people
thought
Drake Field wouldn't
survive. Some proposals after
Confinued from Page 1 B the 1999 exodus included turn-'
opened. Drake Field was served a' the airport into a drag strip,
by American Eagle, Atlantic coin maze or hockey link But
Southeast Airlines, Northwest the Federal Aviation Adminis-
Airlines, TransWorld Express [ration had too much invested
and US Airways. in the 631-acre .facility with a
Boudreaux said building five 6,006 foot runway. So, the com-
• hangars was important to make mercial airport became a gen
the transition from a commer- eral aviation airport.
cialtoageneral aviation airport. The number of flights in
Leased space in hangars and the and out of Drake Field dropped
terminal building provided the from 55,778 in 1998 to 21,761 in
airport with $469,292 in revenue 2000, but was back up to 48,042
last year. - in 2006. The number of flights
:At a general aviation airport; dipped to 34,326 in 2008 .as the
airplanes need a place to live,"- economy weakened and corn-
he said. "They're very expensive paries cut back on charter ser=
investments, so they want to put vice.
them in hangars:' Drake Field's projections
All the space in the terminal for 2009 show a net income of
building has been leased. It's $351067.
home to two flight schools, a Established in 1929, Drake
restaurant, a hair salon; 'a flo- Field is owned and operated.by
rist, the Greenland post office the city of Fayetteville.
and Letsgo Charters & Tours, "I'm really excited about the
Fort Smith-based charter bus profit we got last year from the
company that opened an office airport,". said Fayetteville Mayor
in the terminal building a month Lioneld Jordan. "And I hope we
ago. make more money this year. Ray
fi: Two nonprofit museums, Boudreaux has done an excel-
the Arkansas Air Museum and lent job, and I think it shows
Ozark Military Museum, are in our city can pull together. When
Hangars at Drake Field. something seems like it's lost,
it's not always lost."
•