HomeMy WebLinkAbout2009-05-20 - Agendas - Final • AGENDA
MEETING OF THE AIRPORT BOARD
FAYETTEVILLE EXECUTIVE AIRPORT
1 :30 p.m., Wednesday, May 20, 2009
Airport Conference Room
•
As a courtesy please turf: off all cell phones and pagers.
1 . Welcome — Chairman Bob Nickle.
A. Comments from the public on items on the agenda.
2, Introduction: John Doughtery, FAA Airport Certification Safety Inspector,
3. Minutes of the March 18, 2009 meeting.
4. Minutes of the April 8, 2009 meeting.
5, 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.
6, Old Business.
A. Discussion: Letter from Roger Woolsey, Million Air.
7, New Business. None
8. Other Business.
A. Items from the Public.
B. Items from the Airport Board.
9. Meeting Adjourned.
NOTE:
Next Strategic Planning Meeting
Next Airport Board Meeting June 10, 2009
MINUTES
• FAYETTEVILLE EXECUTIVE AIRPORT BOARD MEETING
March 18, 2009
" MEMBERS PRESENT: Bob Nickle, Otto Loewer, David Hollman, Janice Stanesic, Tim McCarley
MEMBERS ABSENT: Vaughn DeCoster, Richard Greene
STAFF PRESENT: Ray Boudreaux, Louise Powers
OTHERS PRESENT: Tyrone Rogers-Fayetteville Government Channel, Robin Mero-NW Arkansas
Times, Blaise Sharkey-Million Air Fayetteville, Terry Gulley and Don Marr-City of Fayetteville, Skip
Descant-Moming News, Mark Frankum-SkyVenture Aviation
ITEM #1 : Welcome — Chairman Bob Nickle. Welcomed Terry Gulley, Head of the Transportation
Department of the City of Fayetteville, Ray now reports to Terry.
A. Comments from the public on items on the agenda. None.
ITEM # 2: Minutes of the February 11 . 2009 meeting.
A motion to approve the minutes was made by Tim McCarley and seconded by Otto Loewer. The
motion carried.
ITEM #3 : Receiving of Reports.
A. Chairman Nickle. None.
• B. Director Boudreaux, report on airport activity. February operations were up compared to January.
Normally February numbers are up because of the sports teams' charters. Offered thanks to Million Air.
Reported attending the FAA Conference last week. This Airport did not qualify for the Stimulus money
because our Public Meeting had not taken place, although Don Hams our project manager, said possibly
some Stimulus money may be available later. They said to expect 2.4 million to be available after May,
and we need to have our projects ready for the Safety Area Project. Dirt work and grading work needs to
be ready by fall and install the pavement next spring. Reported he and Robin Pelton of the NWEDD had
met with George of the NW Tech Institute regarding keeping an A & P School in Northwest Arkansas for
Washington and Benton Counties. James and he met with the West Fork of the White River Committee
that is working to restore the washed-out river banks. We viewed a site near Winslow where they had
been working. There is a place back of the Airport along the river that will be one of their work sites.
We have about 30 ft. of bluff that has washed out. They will restore it with natural rock boulders, at no
cost to us. We received bids for the HAVC work and they were all above the project amount and will
have to be re-bid. We modified the documents and increased the cost amount, and will put it out for bids
again. The maximum time they will be able to spend on the project is eight weeks., Mark Frankum
reported their area is hot in the winter, and cold in the summer, and the condensation causes their paper to
curl. Director Boudreaux said he had spoken with the client for the big hangar and they said they will
have the lease signed by the end of the month. Reported he had talked to the tower people regarding the
Cost Benefit Analysis, and we may not have to go through that process this time because the economy is
down.
C. Financial Coordinator Nicholson, report on FBO and budget. Director Boudreaux gave the report
as James is out of town. Gave a slide presentation of the charts in the agenda. Commented the overtime
for Airport personnel showed an increase because staff had to come in to manually tum on the runway
lights during the ice storm. The electric was off for a week. Thanked the City for reducing this year's
• Cost Allocation expense.
D. Senior Secretary Powers, report of T-Hangar Leases. There is one hangar empty and expect to
hear back and have it filled this week. Chairman Nickle suggested putting the hangar information on the
Airport's website.
1
E. Museum report. The Collections Committee has meet and the Air Museum will be disposing of 4
aircraft that does not fit the story line, and some old models made by volunteers. •
F. Maintenance Report. Maintenance staff replaced lights, repaired apron lights, hangar doors, been
getting equipment ready for mowing, put a GPU plug in the Million Air hangar, repaired the hangar skin
ripped off by the hangar door, and repaired the water regulator in the maintenance shop.
ITEM #4: Old Business.
A. Rent report from Chairman Nickle, Ray Boudreaux, and James Nicholson. Chairman Nickle
reported that at the last meeting the Board assigned Ray, James and himself to look at the requests from
Million Air and SkyVenture for some rent relief. We looked at the data that they provided, both are going
through some hard times, but the Airport is in hard times, too. Answering Mr. Holtman, SkyVenture and
Million Air rent payments are both in arrears. Several Board Members questioned Million Air's report of
"Bad Debt", saying that sounded like bad management and wanted to know how it is figured, is it a
specific bad debt, or is it built into the corporation to share bad debts around with all their FBO's, saying
when the City ran the FBO there was no Bad Debt. O. Loewer said rent relief would affect our bottom
line. The City's decision will be what is best for the Airport. M. Frankum explained they had two outlets,
here and in Jonesboro. Said the number of flight schools has fallen during the last few years, because of
several reasons, the airlines are taking fewer pilots, and a problem getting student loans. Reported they
had not made a dime here, they have taken personal losses. Fayetteville is the better location. They have
recently received approval to enroll foreign students and that will only grow. The maintenance is not
materializing. O. Loewer stated we needed to sell the concept of aviation. When the school went away,
that started the tum-down, we are missing an opportunity to make a better statement. Director Boudreaux
said the industry has cut back, OAS went out of business, Wal-Mart and Tyson has cut back, there is less
need for pilots, but Aviation is still the largest export in the state. A temporary solution was discussed
until further information is received.
A motion was made by David Holtman to approve a $500.00 reduction in rent for Million Air and •
for SkyVenture Aviation for the rest of 2009, provided rent is brought to date, and paid on time,
beginning with April rent. The motion was seconded by Tim McCarley. The motion carried.
ITEM #5. New Business. None.
ITEM #6. Other Business.
A. Items from the Public. Chairman Nickle recognized Don Marr, Chief of Staff for the City of
Fayetteville who is in attendance today. D. Marr asked the Airport Board to participate in the Fayetteville
Forward event coming up, saying it would be important to have the aviation industry there and
participate, and said you could register on-line. .
Don Marr commented the City would be reviewing the Airport's Cost Allocation in the next Budget
Process and to keep in mind there would be some changes, as to where Ray's time would be allocated,
where to centralize Economic Development. The Chief of Staff, and Terry with Transportation, jobs are .
not in the allocation. They will be looking at the head count based on revenues. He mentioned an article
in the newspaper, stating that the results at the airport are contributed to Ray.
Chairman Nickle thanked Terry Gulley and Don Marr for attending the meeting.
B. Items from the Airport Board. None
MEETING ADJOURNED.
David Holtman, Secretary Date •
2
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MINUTES
• FAYETTEVILLE EXECUTIVE AIRPORT BOARD MEETING
April 8, 2009
MEMBERS PRESENT. Bob Nickle, David Hollman, Tim McCarley, Otto Loewer
MEMBERS ABSENT: Janice Stanesic, Richard Greene, Vaughn DeCoster
AIRPORT STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers
OTHERS PRESENT: Tyrone Rogers-Fayetteville Government Channel; Wayne Jones-
McClelland Consulting Engineers; Roger Woolsey, Blaise Sharkey and MaryKathryn
Floyd-Million Air; Mark Frankum-SkyVenture Aviation;, Terry Lawson-Fayetteville Fire
Department; Warren Jones-Arkansas Air Museum; Russell Smith-Flying Investments
ITEM #1 . Welcome — Chairman Bob Nickle,
A. Comments from the public on items on the agenda. None.
ITEM #2. Receiving of Reports.
A. Chairman Nickle. Chairman Nickle explained the March minutes would be
approved at the May meeting. Said they would have Wayne's report next.
• E. Engineer Wayne Jones, report on construction projects. The City Council
approved at their meeting last night the contract to re-do the controls for the HVAC
system in the terminal. It will be Friday before the Mayor will be able to sign the
contract. The contractors will visit with each business to discuss working in their area, as
to disrupt business as little as possible. Director Boudreaux stated the project must be
completed and paid by July I " to received State Aeronautics funding. Wayne reported on
the Public Hearing for the Runway Safety Area. Public comments were taken and
written comments will be taken for two weeks. Those comments will be addressed, and
then the final report will be submitted to the FAA. Depending on how much grant money
will be available, we can let the dirt work, paving Highway 71 , or let the work on
Lancaster Drive begin. The advertisement date for bidding the relocation of Highway 71
project will be Friday. We will try to keep the prices good for as long a time as possible.
Pre-bid meeting will be April 21a. Bids will be due at 11 :00 a.m. on April 281s. Maps for
the land acquisition should be ready by the middle of next week, for Standard Register,
Kearney's and the Super Stop.
B. Director Boudreaux, report on airport activity. The Runway Safety Area project
will be paid ninety-five percent by the FAA and five percent by the State Aeronautics, .
with no expenditures from the Airport. Talked this morning ,with the people from the
proposed repair station, they asked for a copy of the lease to send to their finance
company. A Fare to Remember landed a catering job to feed the U of A football team
every three weeks. Said he and Robin Peltan had met with people from the NW
Arkansas Institute about establishing an A & P School. Other A & P schools in Arkansas
• are expanding and the one in NW Arkansas is closing down.
C. Financial Coordinator Nicholson, report on FBO and Budget. Gave a slide
presentation of the charts in the agenda. Reported there has been a 15 percent increase in
1
operations this quarter compared to the first quarter in 2008. Fuel sales reflect a 3 .3 •
percent decrease over the first quarter in 2008. Regarding the financial report, we are
doing our best to hold down expenses: The bottom line cash balance is basically the
same as last month.
D: Senior Secretary Powers, report on T-Hangar Leases. All T-Hangar units and
storage units are rented.
F. Museum Reports. Warren Jones said the Museum has approved moving the entire
Ray Ellis Collection to the University. They will put everything on film, and items
already in folders will be placed in acid free folders. The second Kite Fest will be on
May 2"d. They expect a crowd of 400 people. The museum has been given an
experimental plane, the museum will refinish the plane and more than likely re-sell the
plane for the revenue. Master gardeners from Washington County have been working
every other Saturday on the flower beds at the front of the museum. We are still in talks
with Ozark Military Museum to merge with the Arkansas Air Museum, in this day and
time it makes sense to have one entity. Working with Wal-Mart to have their stock
holders tour the museum during their annual stock holders meeting, possibly 500 people a
day. There would be a special interest, seeing Sam Walton's first plane. Chairman
Nickle suggested visiting with the bus charter company in the terminal about bringing
charters up from Fort Smith to the Air Museum.
G. Maintenance Report. They have been working on water valve replacements,
repaired the parking lot lights, cleaned the lot, repaired a leak in the chilled water line,
installed new electric for Rose of Sharon's new area for her cooler, replaced filters in the
terminal, and repaired the winter erosion around the runway and taxiways. •
ITEM #3. Old Business.
A. Million Air presentation by Roger Woolsey. Explained he is President of Million
Air. He expressed his appreciation for getting to come formally before the Airport
Board. Million Air came to the Airport in 2005 and there was some resistance, some
thinking, big name-big prices. We worked very hard to portray who we were. The most
important first mile of the City is the Airport. The movers and shakers that come in by
private aircraft land at this airport, they used to land at another airport but now come
here. We promised an upgrade of equipment, and esthetics, which has taken place. Spoke
of service, that Million Air is the ambassador to the community and for the Airport.
Safety, we had the Blue Angels work with staff to train them. We enjoy the partnership
with the Board, with Mark and the school, and you have the best Airport Manager.
We've worked really hard together to grow the reputation of the Airport, to bring in new
customers. Million Air is in twenty-seven cities, with one thousand-five hundred
employees, and negotiating for two new locations,. Million Air has spent over one
million dollars at trade shows to raise awareness of Million Air. We were recently
featured on Smart Business. Fayetteville is the prefect fuel stop for traveling cross-
country. This last montli he said he had worked tirelessly and traveled back and forth to
Washington DC working on getting a DESC fueling contract approved by the military.
Also approved is an HURNAC (hurricane evacuation) with the Department of Defense
to relocate to Fayetteville. That would be a big increase, a big impact to the Airport and
Fayetteville; we worked with the hotels for rooms for 300 people. We have a lot of .
concrete here to handle a lot of planes. Said he began in aviation working here at Drake
Field as a line tech for Aero Tech's FBO, that he is a pilot, owning a Bonanza and a
Barron. Million Air has worked hard to bring in the jet traffic to off-set the weekend
2
flier. Halberton now stops here on their cross-country flights. On the negative side,
• Million Air is operating in the red and we are glad the Board has agreed to consider
giving some sort of financial consideration in rents as Million Air has taken a hit.
Pointed out that in the last few weeks he had spent one-quarter of a million dollars getting
this location approved with the Department of Defense, and not one penny spent was
allocated to this base. One percent of Million Air Fayetteville's budget is allocated for
advertising and overhead. He asked the Board to consider them as a partner and not a
vender, we don't plan to be here just another year, we want to be here twenty-five or
more years. We do want to be profitable Playing the role of an ambassador, we take
part in the role of business development, we play the role of bringing awareness of the
Airport and Fayetteville, but not receiving any consideration for that. He requested
comments. Chairman Nickle said the Board was shy a few members today, so no other
decision would be made today, but appreciated Roger coming to talk to them. O.
Loewer, Board Member, said just as a citizen, he appreciated Roger being here, but still
wanted to have equity for all the tenants, the things he had mentioned shows how an
airport reaches out to the economy of a community. Roger asked the Board to consider
the product; if the product is only gas and we are only a gas station that is one thing, but
we are more than that, every time Million Air open a new station it becomes part of the
network, part of the corporate community. When the U. of A plane flies into another
Million Air base, it is just like they are flying in home. He complimented the Airport's
tower, saying they have worked with them on the HUR-VAC plans and they are prepared
to meet those needs. Director Boudreaux said he appreciated Million Air's staff, they
are outstanding, talented, and don't make mistakes.
• ITEM #4: New Business,
A. Advertise for bids for the Runway 16 Safety Area Improvement. Director
Boudreaux said this had already been approved by the City Council and no further action
is required.
ITEM #5: Other Business.
A. Items from the public. None.
B. Items from the Airport Board. Director Boudreaux called attention to the Iron Pig
Duathalon taking place on Saturday. The Airport will be closed for one hour while staff
walks the Runway taking pictures of the cracks and, while the runners race down the
Runway. They have one-hundred-and-fifty entries registered. Chairman Nickle suggested
reminding the tenants by email. That was reported already done as well as Notices placed
on the T-Hangar doors.
Meeting Adjourned.
• David Hellman, Secretary Date
3
ere 1 e AVIATION DIVISION
ARKANSAS FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD
Lvray ,
MONTHLY REPORT
Aviation Department
Fayetteville, Arkansas
April, 2009
• ACTIVITY: April 2009 showers turned into thunderstorms and the operations
numbers and fuel sales numbers reflected the bad flying weather. Operations
count for April 2009 was the worst April since April 2002. The first four months
of the year still reflect an upward trend over last year and if we get the flowers
and not the rain, May will continue the growth pattern. Fuel sales were off along
with the itinerant operations numbers. 31 ,704 gallons sold in April is the lowest
April sales number since 2005 and the first four months of the year the worst sales
record since 2005.
• RUNWAY 16 RSA IMPROVEMENT PROJECT: The Environmental
Assessment Study has been accepted by the FAA and a FONSI has been issued.
• This Finding of No Significant Impact is the single item that triggers the project
for construction and the acquisition of land required for the project. Bids were
received April 28 and the low bidder was Sweetser Construction. The FAA,has
forwarded the funding request to Washington and it is moving steadily through
the funding process. Our items to award the construction project, the Task Order
with MCE for construction oversight and materials testing, and for receipt of the
AIP grant are all in the queue with the City Council for approval. We will table
the action items until receipt of the AIP grant. Our FAA Program Manager Don
Harris reports that the Southwest Region has asked for more money in the first
grant than was initially requested as the bids came in very good. He anticipates
receipt of the grant funding in the next few days but NLT the week of the 18a' of
May.
• RUNWAY OBSTRUCTION REMOVAL PROJECT: All trees have been
marked for removal and the landowners have been contacted. We are waiting for
the weather to dry up to get the equipment into the area. Once removed, the FAA
will be notified to make an additional check to make sure that all have in fact been
removed.
• AIRPORT BLOOD DRIVE: The next bloodmobile will be July 10, 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 project is
still alive according to the local contact. The Capital Corporation that is funding
• the project is still performing their due-diligence for the loan. They expect a
decision any day.
4500 SOUTH SCHOOL AVENUE. SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.orglgovemmenUaviation
airport_economic_development@a.fayetteville.ar.us
• FAA rAASTEAM WINGS SEMINARS SCHEDULED : The next safety •
seminar is scheduled for Saturday May 30`h in the Airport Conference Room.
SkyVenture Aviation will again sponsor the meeting. Check the
www.faasafetv.eov website for more information.
• TERMINAL HVAC PROJECT: Multi-Craft/Air Works was the low bidder on
the HVAC controls project re-bid with a bid of $ 117,300.00. We applied for and
received $ 102,000.00 from the Arkansas Department of Aeronautics. The
contractor has started on the project and will be complete by the end of May so
that we can apply for and receive the State funding. The contractor has found
several items that needed to be added to the project and we have selected that
option to insure that the system works as designed.
• RUNWAY MAINTENANCE INSPECTION: We closed the runway for one
hour on Saturday morning to document the condition of the runway. We took a .
lot of photos then scheduled the City's Transportation Department personnel to
crack seal all of the cracks we found. It took two days to seal all of the cracks.
• HANGAR FIRE: I was in Santa Fe, New Mexico when I received the CDC call
that there was a fire on the airport. I thought she meant a fire alarm but she
explained a hangar was on fire. The Spitfire Aviation Hangar burned to the
ground along with two very nice corporate aircraft. Spitfire leased the building
from the Airport. Our local Fire Marshall, the County Fire Marshall and three
Insurance Companies are conducting the investigation to determine cause and
origin of the blaze. It is hoped that we will be able to clean up the mess sometime •
this month. Many thanks to the Fayetteville Fire Department and their firefighters
who preserved the former AATC Hangar and Superior Industries' Hangar.
• CITY WIDE ENERGY SAVINGS INITIATIVE: The contractor has replaced
some of the interior lights but has stopped work while the HVAC contractors get
their work done. Remaining are the apron and parking lot lights and the lobby
lights. The second part of the project is to seal the building envelope which has
yet to start.
• ARKANSAS AIR MUSEUM: The Spring Kite Fest has been rescheduled for
June due to the uncertain May weather. No specific date yet. Other coming
events include the USO . Hangar Dance May 23 and the Memorial Day Troop
Train on Monday the 25th. The train arrives at 11 : 15 and festivities begin shortly
thereafter. For more information call the Museum at 521 -4947.
Respectfully Submitted,
Ray M. Boudreaux, Directo
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ARKANSAS
Airport Progress Report
TO: Fayetteville Executive Airport Board
THRU : Ray M . Boudreaux, Director
FROM : James Nicholson , Financial Coordinator
DATE : May 20, 2009
Tower Operations:
OPERATIONS - MONTHLY 2000 - 2009
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ry FBO Statistics: April 2009
Million Air Category Gallons % Category % TOTAL
Jet Fuel sold to FYV-based customers 161629 65 . 1 % 52 . 1 %
Jet Fuel sold to itinerant customers 8 ,912 34 .9% 27 .9%
Total Jet Fuel Sold 25,541 82 .9% 80 .0%
100LL sold to FYV-based customers 2,458 46 .7% 7 .7%
100LL sold to itinerant customers 2 ,809 53 .3% 8 .8%
Total 10OLL Sold 5,267 17 . 1 °% 16.5%
TOTAL ALL: 30 ,808 96 .5%
City Category
10OLL sold Self-Serve 897 80 .9% 2 .8%
91 Octane MoGas sold Self Serve 212 19 . 1 % 0 .7%
TOTAL ALL: 11110 2 .8%
• 10OLL
100LL sold self-serve 897 14 .6% 2.8%
100LL sold Million Air FBO 51267 85A% 16.5%
TOTAL ALL: 6 , 164 19 .3%
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• OPERATING SUMMARY
MONTH ENDING 4/30/2009 AIRPORT BOARD
OPERATING ACTIVITIES 2007 2008 2008 2009 2009 2009
Actual Budget Actual Budget Budget YTD Actual YTD
REVENUE
Rents 8 Leases 430,259 470,000 469,292 496,200 166,067 147,214
Aviation Fuel 153,476 166,000 126,272 140,056 46,685 40,432
Contract FBO 72,966 110,000 107,682 108,848 36,283 54,974
Miscellaneous 5,121 3,000 16,669 2,500 S33 2,408
INCOME RECEIVED FROM OPERATING ACTIVITIES 661,824 749,000 719,915 749,604 249,868 245,028
EXPENSES
Personnel 301,229 314,262 313,187 327,808 109,269 113,194
Materials 8 Supplies 20,276 22,852 23,213 30,712 10,237 3,735
Aviation Fuel Purchases 86,174 110,000 72.987 85,000 28,333 16,116
Services d Charges 178,146 164,308 167,429 172,818 57,606 40,725
Cost Allocation to General Fund 115,908 65,976 65,976 8,830 2,943 2,942
Maintenance 67,446 55,950 33,990 56,702 18,901 18,396
ATC Tower Costs 23,127 24,341 - - - -
Interest on West GA Hangers Loan (accrued) 17,500 35,000 35,000 32,667 10,889 10,889
INCOME USED FOR OPERATING ACTIVITIES 809,808 757,689 711,782 714,537 238,179 205,996
NET INCOME FROM OPERATING ACTIVITIES - GAIN / (LOSS) (147,982) (8,689) 8,133 35,067 11,689 39,032
INVESTING ACTIVITIES 2007 2008 2008 2009 2009
Actual Budget Actual Budget Actual YTD
NON-OPERATING INCOME
Interest on Investments 26.326 24,000 7,064
Other - Unrealized Gain (Lou) 5,480 -
CAPITAL IMPROVEMENTS EXPENSE
• 05046 AIP 021 Airport Expans Equip (Airband Radios) 2,677
06020 SkyVanture Improvements Rebate 5,000
07024 Runway Approach Obstruction Study 45,000
07039 AIP #36 Correct Rumvay 16 Safely Area Deficiency 130,640 27,260 8,918
07039 AIP #37 Correct Rumvay 16 Safety Area Deficiency Phase II 7,193 170,407 65,131
08055 Replace Airport Fence - Flood Damage 9,200 -
08074 Airport HVAC Improvements (Terminal) 4,820 130,876 475
USED FOR INVESTING ACTIVITIES - - 172,724 304,543 67,459
FINANCING ACTIVITIES
LOANS
Principal on West GA Hangars Loan - - -
Paymens on Loan Principal (accrued) (46,667) (46,667) (15,556)
GRANTSSTATE / FEDERAL
Received from Dept Aero - W GA Hangars -
Received from Dept Aero - Re-Striping 73,448
Received from Dept Aero - Obstruction Shady 45,000
Rcvd State Grams on Fed Projects -
State Grans on Fed Projects - 10,101
Received from AIP #36 Correct RW16 RSA 64,623 57,297 57,297
Due from AIP #36 Correct RW16 RSA 59,485 -
'Due from AIP #37 Correct RW16 RSA Phase II - 69,993
Replace Airport Fence - Flood Damage FEMA Reimburse - 8,050
Due from Airport HVAC Improvements - State Gram 102,000 3,856
NET INCOME FROM FINANCING ACTIVITIES - 195,889 192,724 53,647
AIRPORT CASH BALANCE 595,809 627,107 550,354 862,327
CURRENT ENCUMBRANCES (CAPITAL)
NICE TASK ORDER #3 - Engineering AIP#36 18,342
NICE TASK ORDER #15 - Engineering AIP#37 112,469
MCE TASK - HVAC Assessment 780
MCC Ainwrks - HVAC Improvements 117,300
�ONG TERM LIABILITIES
Hanger Loan Principal 637,777
APPROVED GRANTS - CAPITAL PROJECTS
RW16 Phase I d II (18,220)
Airport HVAC Improvements - State Gram (102,000)
AIRPORT CASH MINUS LIABILITIES (114,122)
n
• HEADQUARTERS
Mr. Ray Boudreaux April 20, 2009
Director of Aviation and Economic Development RECEIVE[)
S . School Avenue, Suite F
Fayetteville, AR 72701 APR 2 0 2009
RE: Million Air 8, Requested Concessions
Dear Ray,
Thank you for allowing Million Air the privilege of serving the Fayetteville Airport for the
past 4-years, and for giving us the opportunity to partner as the vital First and Last
Impression to the very community that we both serve . I further appreciate your
taking the time to understand that . an FBO that simply sells fuel to aircraft is not
serving their community properly, but actually dumb it down. The true role that a
successful FBO plays is paramount in shaping the Brand and Reputation a city holds
in the mind ' s eye of VIPs that hold the purse strings to growth, jobs, spend and
investments into a community. This shaping takes planning, resources, an extremely
talented staff and an organizational focus to execution .
• As stated in the April Board Meeting , Million Air has been successful on many fronts . . .
reputation,- growth in aircraft landings and fuel sales, supporting FYV ' s efforts for
federal and state funding . We are, however, falling terribly short in our own financial
viability at FYV. We are formally asking that the Fayetteville Airport Board authorize a
reduction in rents to help Million Air Fayetteville survive these unprecedented
financial hardships.
In support and as requested by the Board, I am submitting some additional facts for
your consideration in this request:
1 . Million Air has already made significant and substantial cuts at
Corporate prior to this request. Between staff reductions and
operational sacrifices, over $700,000 in annual expenses have been
reduced . This supports the fact that we are not asking FYV carry the
financial sacrifice alone, but we began our own painful adjustments
internally prior to asking for your help .
2. Million Air has and continues to invest heavily in the marketing and
business development of not only the KFYV airport, but in the entire
. Fayetteville community. Among the many projects and programs:
a . Million Air Magazine ($ 1 ,000,000 spent annually, sponsored)
b. Trade Shows ($400,000 annually, shared)
8501 Telephone Road • Houston, Texas 77061
713/640-4000 • Fax 713/641-6788
c. Captains Cards ($20,000 annually, shared)
d . Million Air Radio (Airs Commercials for FYV awareness, sponsored) •
e . Million Air Television Network (42' Plasma in 27 FBOs, FYV
commercials, $ 1 ,000,000+ annually, sponsored)
3. Military, DoD, Government DESC Awareness
a . L-39 Military Airshows ($250,000 annually, shared and TARGETED )
b. Washington DC Leadership Visits ($40,000 Annually, TARGETED)
c. Airbase Visits ($250,000 annually, shared and TARGETED)
4. Million Air continues to use the other 26 Million Air "sister FBOs" for sales
and awareness support . Recently a Million Air "sister FBO" utilized its
relationship with one of the 850 based flight departments to use our
airport where they previously overflew our City. This Fortune 100
Company now lands at KFYV as their weekly fuel stop from Oklahoma to
NY! This supports the Tower, the Airport and Million Air all while exposing
the Fortune 100 executives to North West Arkansas.
5. Million Air' s efforts have also recently succeeded by securing KFYV as the
Official HURVAC Destination to NAS ( Naval Air Station ) Pensacola and
also to NAS Whiting Field . This will translate into over 135 aircraft for each
unit landing at KFYV should that NAS be threatened this hurricane season
with a storm . Not only will the airport see unprecedented .activity, but •
the Fayetteville community will house over 250 Military Troops with meals,
car rentals and hotels for the anticipated event. This will bring awareness
to our City and much desired commerce to our community.
Million Air is a true " Partner" to the entire community, and we serve a much greater
cause than just a fuel dispenser at the airport. As that critical partner, we implore the
Airport Board to consider our request and ask that they authorize immediate relief to
Million Air (in the form of rent reductions) . We have enjoyed serving our community
and Airport, and we desire to continue for many years down the road . We simply
need your help in weathering these financial storms, and hope that you value our
contributions enough to immediately authorize our request. Please call with any
questions that you may have. Thank you in advance for your kind consideration! I
remain . . .
Very Truly Yours,
Roger Woolsey
CEO
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♦ ♦ MONDAY, APRIL 27, 2009 36
Bentonville, Summit Aviation
A' rn �� has found a niche in the local
M Municipal airport fees market. Summit operates a Right
e Continued Irons Page 1 B
school, a licensed Cessna service
meaningful changes. SDdnpdales municipal airport will begin assessingGenerator and center and maintenance facility
For
as long as I've remem- ramp lees starting May 1. Here Is a look at the lee structures at both for general-aviation planes. As
bered, Springdale didn't have. Springdale Municipal pinnacle Air Million Air the fixed-based operator, Sum-
ramp and overnight fees," Ceorge Airport and Fayetteville's mit also sells fuel
said. "They basically take advan- Drake Field. at Springdale et Fayetteville's Though sales are down. Sum-
tof our hospitality and leave. Municipal Airport* Brake Field" mit, owned by Dave Powell, has
It's not asking more than most - no intentions of installing fees or
airports as Fee or fuel purchase Fee or fuel purchase reducing hours.
Million Air, which operates BENERATORFEESS25�:. - Aiyh Airy; - 9 dont think the business is
at Drake Field, already charges struggling like I thought it would
RAMP FEES
the same fees announced by Sinple'enajne E10); 10 - Ilord X510 •1,. "-t0:pallom' in this economy," Powell said.
Springdale. Twinpropeller - $20 20 pillow E20 t 20 allons "Tine last thing I want to do is
George said that even under 4 charge you to land. I'll fight it.
reduced hours, airport crews, T"u oprop, S50 50 onsr $50� 0ga111 Without a tower, the Ban-
will still be able to handle early Small $100 " 100 Ilom 'tonville airfield caters predomi-
and late flights, if necessary. �M'edum el : 200 gallons E2 He randy to twin-and single-engine
"We're there 24l/ if you call Large lel $300 300 gallons E300 300 gallons planes: Occasionally, a jet car-:
George said. "The pilots .me yb,rexhes £5 pewnwei hes,ua tt ••Mceen air.the madaued Writern . tysisg�Wal-Mart vendors lands
know that." urns preaeanmNnid rue: Rmtle tit, ale eimert keeps a hes. Fgennne there:The expectatioq Powell
Drake Field down t work un- oro tlrpwh raM-msed operate, teens e. rat. mraa to rnin Der Damn m tui Wes said, is that the bigger jets will
der reduced hours but is open need fuel. But the pilots of prop
11 hours less than the current bwnas Der=mGeupe . planes might -stop off at any
Springdale schedule. Beginning Knight said the beginning of . "We're just talking about"dif given airport simply to use the
May 1, Springdale will operate this year might be the harbinger ferent ways to improve our fi. restroom or have lunch
five fewer hours per week than of better times. nancial situation," Krutsch said. Taxing those pilots is wrong,
Fayetteville. "Through the first quarter, "lake everybody, we're.looking said Powell
The financial eruncHin we're. level" he said. "Maybe at ways to reduce eoslsand raise "It's the littleguy that gets
Springdale ixn't isolated. Across we've.bottomed out" revenue r hurt, net the big guys."
Arkansas, the state's 91 public- Michael Scroggin• director Rogers does.not charge for While the Bentonville airport
ownexVpu66c-use airfields have : of the. Siloam Springs Mumci- short stopovers;but does charge does not have a restaurant,= as
eaperienced 'adecline in fief pal Airport,said nothing his for longer ones. ' 4 does Springdale, Rogersand.Fay:
sales, said John Knight. director changed there. - Beaver Lake Aviation, the etteville '- it has comfortable,
of the Arkansas Department of "We're just glad people c mae. .fixed-based operator in Rogers, furniture and a large,,flat-screen
Aeronautics in to buy fuel," he said. raters primarily to jets carrying 71V for pilots. If a pilot wants to
"The trend is downward, For now, at least, Siloam vendors and employees of Wal- haw lunch in towq he can take
somewhat, but not as much Springs is not hurting too badly. Mart Stores Inc. ' a city-owned 'courtesy car and
as you might think," Knight "It's slow, but our business is last yeay the airport installed upon his return;pumpafeur,ga--,,
said. "We see it in our revenue not that far off" Sctoggin said. pilot-controlled lighting, which loos into the tank
stream." Faced with decreased fuel means the lights are on only Pilots like comfort and ac-
Fuel taxes are funneled to the sales, Rogers.Municipal Airport when a jet is landing.The system commodation, not new fees,.
agency, which then returns them Manager David Krutsch said of- cuts down on maintenance and Powell said.
in the form of grants for meld facials there are contemplating utility costs, Krutsch said. "We want people to enjoy do-
improvements. - changes At Louise Thaden Field in ing business here"
•
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NESDAY—Apri121,2009
r
Airport fire under investigation
BY.ROBIN MERG. Citation II were completely destroyed by
xamxesi Aiwmasrimes
theft re, whichwasreported by a passerby.
• at 1.33 a.m., Ray Boudreaux, airport direc-
The Fayetteville, Fire Marshal's Office tor, said.. . .
used heavy equipment Monday to remove "This must have been aterrible accident
charred rubble from a hangar where two of some kind. Aircraft operators are typi-
airplanes,were destroyed by fire early Sat- cally very careful," Boudreaux said.
urday:at Fayetteville Executive Airport. . The city of Fayetteville owns the ban-
. Fire Department Battalion Chief Terry . gar at 4240 S. School Ave. just north of the
Lawson said the cause remains under Arkansas Air Museum. The space has been
.investigation. The large metal roof still lay leased since May 2006 by Spitfire Aviation
atop 'cbarred remains on Monday"after- Services.LLC, owned by Lance Creamer.
noon with orange tape liloclangahe area. According to the company's Web site at
"We're stfil digging the fire out," Lawson www.spitfim1c.com, Spitfire helps with buy-
said: He had no estimate for how long the ing and selling aircraft, offers pilot services,
Investjgatlon will take... ;
A Beechcraft King Air B200 and Cessna See FIRE, page A7
•
?JORTHUJW ST Ai21CANSAS TIME5
• Apr, l Li Zvc9 �� Z4Z
proximity to two other ban- "If the insurance money
FirQ gars— one leased by Superior isn't enough, we'll have to .
Industries to the north and an ask the state to help, Bou-
Continuedfrom Al' empty hangar south that was .dreaux said. .
•
formerly leased by Arkansas In the meantime, .the city and sells off-road adventures Aviation, Boudreaux said. will forfeit the monthly lease
in northern Mexico's_stat6 of "Outstanding work, just amount of $ 1 ,828. The air-
Coahuila. outstanding;" Boudreaux port has nine such corporate
The King Air craft was said of the FireDepartmenf's hangars and 81 smaller .T-
operated by Spitfire for efforts. % couple of light fix- hangars, he said.
Crossland . Construction; turecovers were melted;.and Creamer has ail active
Boudreaux said. Creamer is that's it" lawsuit in Washington
in Mexico now and hasn't Boudreaux heard,Monday County Circuit Court against
been directly contacted. Two from four contractors eager 'Mark Myers and Executive
insurance adjusters.have As- . . to clean debris and rebuild . Aviation Services, :claiming
ited.the airport, and a third the hangar, .but he said the Myers accused flim of fly-
is expected today first step is finding our how 'Ing chartered planes without
The fire was contained much the insurance carrier following Federal Aviation
to the hangar, despite close will provide. Administration rules.
•
LOCAL
TUESDAY, APRIL 21, 2009 Fs THE MORNING NEWS
Two;, Planes Burned
Tn . Han ar Fire
. g
'OFFICIALS CONTINUE. INVESTIGAT'ION INTO CAUSE
DescantBySW ' `Nye.don't have any answers right now. We'll
SDESGar�+�,�r : have to wait and see what comes nexti,was otft
of town in Mexico when ihis happened.
FAYETfE ILLE - Two corpo-
rate
rate jets were destroyed early LANCE CREAMER
Saturday morning when a jet Owner of Spitfire Aviation LLC, the mmpay.
fuel fire engulfed a hangar - that owns the two planes burned in the blaze '
at Fayetteville Executive
Airport.
The two planes ''-.a Cessna rate jet style hangars at Drake about what sparked-the fire,
• Citation ]I and Beechcraft Field are owned by the city officials said
King Air 200 — owned by of Fayetteville: It was the "'They're doing their inves
Spitfire Aviation LLCburned first fire of this type at Drake tigation,". Lawson said. All
in the blaze:. Field, said Boudreaux of the metal is on top of the
"The only:thing left are "Fires are very .uq'usual," pile and they'll have to use
the engines,". said Ray Boudreaux said .from his . the heavy equipment.to go
Boudreaux, executive:direc- office Monday afternoon. through icand carry out the
for of the Drake Field tunic- ,,"Because:generally, aircraft investigation" '
ipal airport. Both : planes operators are very careful.". Eadief,reports that a miff-
. were small eight-passenger The Fayetteville Fire ,tary helicopter neaiby .was .:
aircraft. . Department responded to leaking fuel seem unsubstaq-
Spitfire;had beenleas the fire. And even though tiated There'was a'helicop- .
ing the hangar space since . the,department maintains a. . ter moved into the adjoining
, ,May '2006 ¢or $1,828. per special,"aitcraftrescue 'fire- hangar;to protect. it from
month, according to:airport . fighter vehicle" at the airport weather,said Blaise:Sharkey,
documents. In addition to to handle airplane fires, the general manager for Million
offering private plane and hingar fire:was treated like . Air; the provider of airport
pilot services, Spitfire Also. a standard building fire, . services at Fayetteville Exec-
't
off,-road said Terry Lawson;battalion utive Airport
motorcycle trips to ivtexico, chief for the Fayetteville Fire "L put the helicopter in
according to its Web site. Department. .' there and wasn't even fueled
. The%three-day all inclusive ` "The:guys did an outstand- yet," said Sharkey. "I don't
packages are to $3,009 ing job'of keeping the fire know where they: got that
• per person: . contained_ to the hangar that from, that it was leaking
It's still too soon to say . burned,":added Lawson, who fuel.
how the company will move noted the hangars on either Rebuilding the hangar
forward side of the Spitfire hangar. could also bemonths away,
We don't have any . received only minimal said Boudreaux
• answers right now,": said . damage. Superior Industries ".It depends . on"money
Lance . Creaer, owner of. . is on the north.side. Arkan- _ how much we. getm
fro
Spitfire. "Wem'l4ave to wain sas Aviation Technologies . the insurance and if that's
• and see'what comes next..1 , Center is in :the hangar on enough, or maybe we'd have
was out of town,in Mexico the south side. to 'try to get some<inoney
when this Happened." . Other"than being triggered . from the state," Boudreaux
All nine ofthe large corpo- by jet fuel, little is known said,
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Hangar
Continued from Al
na and 'a King Air 200 —. were completely destroyed in the,
blaze.The hangar is owned by the city of Fayetteville and was
• being9eased to Spitfire Aviation Services ILC.
"This is the first fire i'ye experienced at the airport," he
said.
Initially constructeddrfthe' early 1970s, Nicholson said,
the.hanga didn't feature any fire sprinklers.
"The newer ones havti vlem, but by.code,youu dont have
to have sprinklers,until vhangar is over 100,000 square feet,"
he sud .
According to a March 5 article published in the Arkansas
Democrat=Gazette, leased space in airplane hangars and the
terminal building provided the Fayetteville Executive,Airport
with $469,292 in revenue last year. ,
"Of course we have insurance, but the revenue from that
company willbe completely lost until we get that hangar
replaced," Boudreaux said.
No damage,estimates were available as of late Saturday.
The fire is being investigated by the Fayetteville Fire Mar-
shal's Office.
•
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