Loading...
HomeMy WebLinkAbout2010-01-14 - Agendas - Final Director Ray Boudreaux aye evl a Chairman - Bob Nickle • Financial Coordinator lames Nicholson TARKANSAS Vice Chair - Janice Stanesic Senior Secretary Louise Powers Secretary - David Hallman Member - Otto Loewer Member - Vaughn DeCoster Member - Richard Greene Member - Tim McCarley Agenda Fayetteville Executive Airport Board Meeting 1 :30 a.m., Thursday, January 14, 2010 Terminal Building Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off all cell phones and pagers. I . Welcome — Chairman. 2. Approval of the Airport Board Minutes of the December 10, 2009 meeting. 3. Receiving of Reports. A. Engineer Wayne Jones, report on construction projects. B. Director Boudreaux, report on Airport Activity. C. Financial Coordinator James Nicholson report on FBO and Budget. • D. Louise Powers report on T-Hangars. E. Museum reports. F. Maintenance report. 4. Old Business. A. Update: Fuel Flowage rates. B. Discussion: Airport Goals. 5. New Business. A. Wildlife Hazard Assessment. B. Discussion: FBO Contract Renewal. 6. Other Business, A. Items from the Public. B. Items from the Airport Board. 7. Meeting adjourned. • NOTE: Next Airport Board Meeting: Thursday, February 11, 2009 Strategic Planning Meeting: 4500 SOUTH SCHOOL AVENUE, SUITE F e AIRPORT TERMINAL BUILDING - FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/§ovemmenttaviation airporL_eoorlomic—development@ci.fayefteville.ar.us r • Airport Board Meeting Fayetteville Executive Airport-Drake Field December 10, 2009 MEMBERS PRESENT: Bob Nickle, Otto Loewer, Dave Hollman, Richard Greene, Vaughn DeCoster, Janice Stanesic, Tim McCarley STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Ty Rogers-Fayetteville Government Channel, Wayne Jones- McClelland Consulting Engineers, James Koch—Arkansas Western Gas, Terry Lawson- Fayetteville Fire Department, MaryKathryn Floyd and Blaise Sharkey-Million Air, Frank Sperandeo-tenant, Charles Caldwell-tenant ITEM #1 : Welcome — Chairman. ITEM #2: Aoaroval of the Airport Board Minutes of the November 12, 2009 meetine. A motion to approve.the minutes was made by Janice Stanesic and seconded by Vaughn • DeCoster. The motion carried. ITEM #3: Receiving of Reports. A. Director Boudreaux, report on Airport activity. Stated that the transient corporate travel has increased. Regarding the 16 Improvement Project, still working to acquire land from Cooper Power/Keamey National, and they are working with AEDQ. Said he and Wayne had attended a meeting with AEDQ in Little Rock with Cooper and Kearney attorneys and AEDQ is very cooperative, and hope to have an agreement by the end of the year. Additional drainage and electrical easements from Standard Register have been required by the Arkansas Highway Department. Paperwork has been sent to them and they hope to have it completed by Christmas. Staff has been working on removing trees south of the airport; they have about six more to take down. This will be beneficial in getting the Glide Path Qualification Surface, and then we can ask for the LPV Approach to be installed. We may see activity before the first of the year from the proposed client for the Tech school facility. B. Financial Coordinator James Nicholson, report on FBO and Budget. Gave a slide show of the charts/graphs in the agenda. Reported the aircraft operations are behind last year, but look like they are beginning to increase. The FBO' s fuel sales are slightly over the same period last year. The Airport's finances show we are slightly ahead of the budgeted amount. C. Louise Powers, report on T-Hangars. Stated there were three hangars empty: two twin units and one single unit. None of the names on the waiting lists are ready to move • to Drake Field. 1 • D. Wayne Jones, report on construction projects. Reported the contractor has made decent progress even though the weather is holding them back. Last month they were 11 % complete. Said they have met with Standard Register about their plant entrance. They are working with the utility companies regarding the relocation of their lines. Arkansas Western Gas has expressed concerns about their line being inside the Airport' s security fence and them having to relocate a line to parallel the highway. The Gas Company does not want the existing line left in place. Wayne related there is not any money in the project budget to pay the Gas Company to relocate their line. Wayne introduced James Koch, Engineer for Arkansas Western Gas Company. Mr. Koch explained they would have restricted access to their line if it was left in place. The Gas Company wants to relocate the line that has been in place since 1949 and would like to enter into a cost relocation contract with the City. The Gas Company's work force would do the work and collect the funds from the City when it is completed. The Gas Company's original estimate was $500,000.00, and it has been pared down to $83,000.00, using a plastic line instead of metal, which greatly reduced the cost. It would cost less to have a contract to do the work up front than to do it later. Wayne explained there was no logical reason to relocate the sixty year old line, and it would probably need to be replaced sooner or later. Director Boudreaux said this morning was the first time he had heard of the problem. Relocation of the line was not included in the project, had not thought it would be a problem to leave it in place, there are other gas lines on the airport property. There is a line item in the project budget for relocating utilities, this will exceed the budget, and we have already exceeded the budget on the land purchases. We can go • 15% over the grant, and we are not near that now. Chairman Nickle said on a project this big, surprises do occur along the way. He thanked Mr. Koch for coming and explaining to the Airport Board. Airport Board Consensus: To approve pursuing a cost relocation contract with Arkansas Western Gas Company for $83,000.00, with a $5,000.00 contingency, through the City's Contract Review Process. Other information regarding the highway relocation project is the lady that owns the home next to the highway relocation does not want to make a decision now about selling her property or go with insulation; staff will re-visit with her after the first of the year. E. Museum Reports. The Arkansas Air Museum will hold an Open House and their Annual Board Meeting on Sunday from I to 5 p.m., everyone is invited. The meeting will start about 3 :00 and last about 15 minutes. F. Maintenance Report. Staff has been cutting trees as part of the Obstruction Study, working with owners to get permission, as there were no Avigation Easements south of the airport. They have worked on the T-Hangars, water lines, toilets, spigots, and got the heat repaired in the Tech building. ITEM #4: Old Business. A. Update: Fuel Flowage rates. An increase would be nice to have, but would hurt the FBO and their customers, asked to leave the item on the agenda under "Old Business" for the next meeting. ITEM #5: New Business. • A. Discussion: Motor home storage in big hangar. Told of having requests from tenants asking if they could put their motor homes in storage in the big hangar. We could 2 J • rent out the spaces for $ 100.00 per month and it would help with the heating bill to keep the water from freezing in the hangar. The building does not have a sprinkler system. Most RV storage is outside, this would be inside. It would help with the cash flow. The airport is not in the RV storage business, we don't want more than five or six. They would need to provide insurance. The agreement would be presented to the City Attorney for comments. Airport Board Consensus: Approve agreement including comments from the City Attorney and send through City Contract Review. B. Airport Goals. Director Boudreaux said that Terry Gulley had asked for Airport Goals, and would like to present them to the Airport Board, and then suggested a Strategic Planning Meeting to discuss the goals. Chairman Nickle suggested reviewing the goals before the next meeting and deciding at that next meeting whether to discuss them or to have a Special Meeting. ITEM #6: Other Business. A. Items from the Public. Frank Sperandeo said he is an Airport Support Volunteer and wanted to thank Blaise of Million Air, for promoting flying Young Eagles, it produces a lot of positive results. Two of the kids want to take flying lessons. Said each Young Eagle that he takes up flying costs him roughly $4.29 for gas. Reimbursement for fuel has to be from Phillips Fuel for the pilots to get $2.00 rebate, and the fuel has to be bought at the airport where you are flying the Young Eagles. Million Air does not have Phillips Fuel. Stated he wasn't a local EAA member (sponsors Young Eagle programs), but a Member-At-Large. Charles Caldwell asked about the rate used for the T-Hangar rent increase, why was the • rate different for the twin units, than the single engine units. Director Boudreaux said it was decided to not raise the rent by the formula, but by a dollar amount, basically half of what the formula would have raised the rent. It was not done by a percentage, and a rent increase will not be considered again for two years. B. Items from the Airport Board. None. MEETING ADJOURNED AT 2:56 p.m. David Holtman, Secretary Date • 3 THE CITY OF FAYETTEVILLE, ARKANSAS Tayve evl e AVIATION DIVISION 4SOO S School Ave, Ste F Fayetteville, All 72707 ARKANSAS P (479) 71&7612 QUARTERLY REPORT FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD 4th Quarter, 2009 January 8, 2010 • AIRPORT ACTIVITY: Bad flying weather at the end of the year adversely affected the December activity at the airport. The downward trend continued with operations down 4% year over year. 2009 flight operations are down 31 % from the peak recorded in 2006. The numbers have steadily decreased since 2006 with the most dramatic drop recorded in 2007 which accounted for a 24% decrease in activity. The activity has continued to drop although less each year. Hopefully we have hit the bottom and growth is around the comer. Most of the professional publications report that general aviation will begin a slow return to normal in 2010. Fuel sales reflect a similar trend off 26% from the peak recorded in 2006. Interestingly, the drop year over year this year is much more dramatic reflecting a 13% drop in fuel sales in 2009 from last year. • RUNWAY 16 RSA IMPROVEMENT PROJECT: We continue to make progress • although the weather now will be a factor as much of the work requires dry and warm working conditions. Two out of three of the creek crossing box culverts are complete. The third is 40% complete. No additional roadbed work has been done since last quarter. We are still waiting on the Kearney National/Cooper Power parcel. Cooper is trying to get ADEQ to limit their liability for any potential contamination migration off the land. McClelland Consulting Engineers and I attended a meeting with ADEQ and Cooper Power representatives to see if there were ways to mitigate their liability when they purchase the property from Kearney and sell it to us. The short answer is probably no so we are working to get together a condemnation letter to get the property so we can get the road construction completed. Cooper has drafted a three party agreement with Kearney, Cooper and the City for our review. They have told us that the agreement will get us the property the quickest. We are now five months since we made the written offer to buy the land. The additional easements requested by AHTD from Standard Register have been sent to their attorney and we are expecting resolution soon. An additional drainage easement allows access to the Airport Branch for cleaning of the box culvert. The second easement, a utility easement allows the realignment of a force sewer main near the Airport Branch. • RUNWAY OBSTRUCTION REMOVAL PROJECT: We received permission from one of the land owners South of the airport and began removing trees in the approach surface to Runway 34. We determined that there were no avigation easements established over the land to the South as presumed. We will be working to establish those easements over the next several months. There are 35 different landowners South of the airport. The trees are • on the east side of the current approach lane and must be removed to clear the Glidepath Qualification Surface (GQS) for the new LPV approach we have requested for Runway 34. Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS • All GQS penetrations have been removed for the Runway 16 approach except for those associated with the realignment of the Highway. Our current RSA 16 Improvement Project will remove all remaining penetrations for Runway 16. We will continue to remove the trees that are identified when the weather permits and plan to have them all removed by the time the leaves return. • FORMER AVIATION TECHNICAL SCHOOL BUILDING: The Airport Board approved a temporary use agreement for the storage of oversized vehicles in the former AATC hangar. We must heat the building so the temporary storage will help pay the heat bill. We already have six tenants and have had others call. We have a caveat in all non- aviation agreements that allows for 30 days notice to vacate should an aviation business need the space. I have been in contact with our Maintenance prospect and they still plan on moving to Fayetteville Drake Field. More to come! • AIRPORT DEVELOPMENT POTENTIAL: We have received two inquiries on the potential for aviation developments at our airport. Each would require 100,000 SF. We are in competition with many other airports so our chances are very small; however, it is an indication that aviation industry activity is starting to pick up. Here's hoping that they find Drake to be the right fit for their business. • T HANGAR RENT ADJUSTMENT: The Airport Board approved a modest increase in the T Hangar rent. It has been three years since the rent was adjusted for the increase in the • cost of living. The Board considers adjusting the rent every two years. Last year due to the recession, the Board elected not to change the rent for 2009 but to consider an increase for 2010. When computing the increase in the cost of living, an increase of 17% would be required. The Board however, approved a more modest increase of 8% for the larger hangars and 7% for the small hangars. They also made the decision not to consider another adjustment for two years. • WILDLIFE HAZARD ASSESSMENT: The FAA has directed that all Part 139 airports receive a Wildlife Hazard Assessment. The assessment requires a wildlife hazard professional evaluate the wildlife on the airport during all four seasons and to recommend management actions to eliminate potential wildlife accidents. We have a very aggressive wildlife management program but must develop a formal Wildlife Management Plan according to the directive. FAA has agreed to fund the study. • ARKANSAS AIR MUSEUM: I was elected President of the Arkansas Air Museum Board of Directors at the annual meeting in December. s tful Sub ed, Ray M. oudreaux, Direc r Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 1 �lol!'I Iisim I!i�I�i l I I` I I iii�i�i I., III� l l, , [11111 .1710,111inIorl r�� � i lvii I_ll, I III I,1 I'I I� rs:•--r®m®�fir®m m000 6�fEF'�s��F.���sT"s©aO�Fa� •'�rc'r. c��FZi�O PI r1pij 7I,r 'III � h I� Ir I II Ii I I I SII �L I�I II II ( II li! Ilml 7r, ��mmmmmmmm�om ��m�mmo�mmmm �ommm��oommmm . . ISI ICU( �� �. iiiTpf' DIIF1 � I hIII0i� iiiIrd I�� I � ' � • ®®mm000 �mmmo�mmmo�m� WNt FRANKS at09Qmi*eAgRid SMO bVPlaoatef7WM Fie1s31esbvRb iU MOD rfs e XMLBM maiwa. nravrlmL JIDw am .wi RB W wn W FBO Stadstfcs: Dec 2009 Million Air Category Gallons % Category % TOTAL Jet Fuel sold to FYV-based customers 184123 77 .1 % 62 .6% Jet Fuel sold to itinerant customers 58368 22 .9% 18.5% Total Jet Fuel Sold 23 ,491 85 . 1 % 81 .2% 100LL sold to FYV-based customers 21068 50.2% 7 . 1 % 100LL sold to itinerant customers 2,051 49.8% 7 . 1 % Total 100LL Sold 40119 14 .9% 14.2% • TOTAL ALL: 27 ,610 95.4% City Category 100LL sold Self-Serve 11122 83 .9% 3.9% 91 Octane MoGas sold Self Serve 216 16 . 1 % 0.7% TOTAL ALL: 1 ,338 4 .6% 10OLL 10OLL sold self-serve 11122 21 .4% 3.9% 10OLL sold Million Air FBO 41119 78 .6% 14 .2% TOTAL ALL: 56241 18 . 1 % Survey of Fuel Prices : Fuel prices within 50 miles of FYV as of 1 /12/2010 Ident FBO Name Jet FS 10OLL FS 1001.1. SS 91 MoGas Inc f Dec SLG City of Siloam Springs 4 .03 4 .15 3.65 1oalboth VBT Summit Aviation 4.05 4 . 15 3.95 No change TQH City of Tahlequah both selfsery 3.69 3.99 No change FYV Million Air F tteviile / City SS 4.74 4.67 4. 13 3.06 No change • FSM TAC Air 4.97 5.04 4.50 All ASG Pinnacle Air Services 4.39 4 .44 MOLL FS XNA Regional Jet Center 4.58 4 .43 deco ROG Beaver Lake Aviation 4.58 4.40 14, a1 TayetO S • FAYETTEVILLE EXECUTIVE AIRPORT OPERATING SUMMARY MONTH ENDING 12/31/2009 AIRPORT BOARD OPERATING ACTIVITIES 2007 2008 2008 2009 2009 2009 Actual Budget Actual Budget Budget YTD Actual YTD REVENUE Rents & Leases 430,259 470,000 469,292 498,200 498,200 454,402 Aviation Fuel 153,478 166,000 126,272 140,056 140,056 121,489 Contract FBO 72,966 110,000 107,682 108,848 108,848 116,478 Miscellaneous 5,121 3,000 16.669 2,500 2,500 5,937 INCOME RECEIVED FROM OPERATING ACTIVITIES 661,624 749,000 719,915 749,604 749,604 698,306 EXPENSES Personnel 301,229 314,262 313,187 327,808 327,808 334,850 Materials & Supplies 20,276 22,852 23,213 30,712 30,712 12,469 Aviation Fuel Purchases 86,174 110,000 72,987 85,000 85,000 69,915 Services & Charges 178,146 164,308 167,429 172,818 172,818 150,697 Cost Allocation to General Fund 115,908 65,976 65,976 8,830 8,830 8.830 Maintenance 67,446 55,950 33,990 56,702 56.702 54,565 ATC Tower Costs 23,127 24,341 - - - - Interest on West GA Hangars Loan (accrued) 17,500 35,000 35,000 32,667 32,667 32,667 INCOME USED FOR OPERATING ACTIVITIES 809,806 757,689 711,782 714,537 714,537 663,992 NET INCOME FROM OPERATING ACTIVITIES • GAIN I (LOSS) (147,982) (8,689) 8.133 35,067 35,067 34,314 INVESTING ACTIVITIES 2008 2009 2009 Actual Budget Actual YTD NON OPERATING INCOME Interest on Investments 26,326 24,000 22,111 Other - Gain (Loss) on sale of assets 5,480 350,870 350,870 CAPITAL IMPROVEMENTS EXPENSE 05046 AIP #21 Airport Fxpans Equip (Airband Radios) 2,677 • 06020 SkyVenture Improvements Rebate 5,000 07024 Runway Approach Obstruction Study 45,000 07039 AIP 1t36 Correct Runway 16 Safety Area Deficiency 130,640 27,260 23,611 07039 AIP #37 Correct Runway 16 Safety Area Deficiency Phase II 7,193 170,407 161,037 . 08055 Replace Airport Fence - Flood Damage 9,200 - 08074 Airport HVAC Improvements (Terminal) 4,820 130,876 119,051 07039 AIP #38 Correct Runway 16 Safety Area Deficiency Phase III - 3,813,208 628,471 09021 Hangar Fire - disposition of insurance proceeds 350,870 13,209 Misr Equipment - Portable Lighting Rig 3,878 USED FOR INVESTING ACTIVITIES 172,724 4,117,751 576,276 FINANCING ACTIVITIES 2008 2009 2009 Actual Budget Actual YTD LOANS Payments on Loan Principal (accrued) 46.667 46,667 46,667 GRANTS STATE / FEDERAL Received from Dept Aero - Ra-Striping 73,448 - Received from Dept Aero - Obstruction Study 45,000 - Oue/Received from Slate Grants on Fed Projects - 200,760 10,098 Dus/Received from AIP #36 Correct RW 16 RSA 64,623 57,297 57,297 Due/Received from AIP #37 Correct RW 16 RSA Phase II 69,993 69,993 Received from FEMA Replace Airport Fence - 2008 Flood Damage - 8,050 8,050 Due/Received from Airport HVAC Improvements - State Grant - 102,000 102,000 Due/Received from AIP #38 Correct RW 16 RSA Phase III - 3,622,548 716,861 NET INCOME FROM FINANCING ACTIVITIES 136,404 4,013,981 917,632 AIRPORT CASH BALANCE 595,809 567,622 498,919 943,292 CURRENT ENCUMBRANCES (CAPITAL) MCE TASK ORDER #15 - Engineering AIP#37 7,429 MCE TASK ORDER #1 - Engineering AIP#38 204,551 Sweetser Construction Inc. - Construction AIP#38 2,620,466 Lard Costs AIP#38 - estimated remaining 217,200 105 TERM LIABILITIES Hangar Loan Principal 606,666 APPROVED GRANTS - CAPITAL PROJECTS RW16 Phase l & II - - RW t6 Phase 111 (2,905,687) AIRPORT CASH MINUS LIABILITIES 192,667 • 2010 GOALS FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD 1. Close all property purchases needed for the RSA 16 Improvement Project. 2. Initiate construction of Ernest Lancaster Rd relocation. 3. Cultivate prospects for a new hangar building to replace the burned hangar. 4. Find new client for the old school building. 5. Initiate Security Project for the Airport. Apply for State Grant. 6. Complete construction of RSA 16 Improvement Project and dedicate roadway to the State. 7. Make arrangements with Mrs. Paschal to remediate her noise increase due to relocation of the road. 8. Install outriggers on the South RSA fence • 9. Initiate negotiations for new FBO contract. Contract due for renewal August 1, 2010. Agreement to the Board 90 days prior (May 1, 2010). 10. Investigate the possibility of a runway extension. 11. Initiate planning for the Terminal Apron Rehabilitation Project 12. Complete obstruction removal for the GQS off both ends of the Runway to prepare for new LPV approaches. 13. Initiate contract for a Wildlife Hazard Assessment and management plan funded by the FAA. • FAA Southwest Region , Airports Division Safety Standards Branch A Airport Certification Information Bulletin 2010-003 Issued December 4, 2009 Wildlife Hazard Assessments and Site Visits Reference Cert Alert 9;io There are still a lot of questions concerning wildlife hazard as- sessments and who needs and who doesn't need to have one completed. rt; Question Number One—What is the difference between an as- sessment and a site visit? A site visit once known as an assessment, was a 1— 3 da visit conducted by a qualified wildlife biologist to a spe- cific triggering event. It is no longer conducted or meet the Contact us et r Part 139 requirement of assessment. � '�' " ' FAA , . An assessment, as defined in Part 139, is a year long, four Aitports,Diy�swn,ltegonal season evaluation of wildlife and is conducted by a quali- ofiice ,' fied wildlife biologist in response to a specific triggering 2601 Meacham Blvd. event. Fort Worth, TX 76137 . Question Number Two—How long is an wildlife assessment good for? • Additional guidance will be provided after a determination has been provided by the National FAA Wildlife Biologist. Question Number Three—Which airports are required to have an Wildlife Assessment? • All Part 139 airports are required to have a wildlife assess- Contact •.your ` Certil cation;. ment completed with the exception of airports that cur- Safety ' Inspector ",;with any;,.. rently have a Wildlife Hazard Management Plan or recently "questions: , or for",. additional;. completed a full wildlife assessment. information. " Funding is available through the AIP program for conducting ,• ,. .S Y'• wildlife assessments. The results of the assessment will be used to determine if an airport will be required to have a Wild- • -. . life Hazard Management Plan (WHMP). - v Ta e Ldle THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE MEMO TO THE AIRPORT BOARD TO: Bob Nickle, Chairman Airport Board Airport Board Members FROM: Ray M. Boudreaux, Director, Aviation DATE: January 13, 2010 SUBJECT: Discussion re: MittionAir Contract Renewal DISCUSSION: The Fixed Base Operator Contract is up for renewal this year. The contract states that the agreement must be finalized 90 days prior to the renewal date or May 1 , 2010. We have begun discussions and Million Air has declared its interest in remaining the FBO for Fayetteville, Drake Field. The Use and Lease Agreement Contract is for five years renewable for three consecutive five year periods. The Agreement states that "All rental terms shall be negotiated and agreed upon prior to 90 days before the end of the then current term and the negotiated terms shall then be presented to the Airport Board and the City Council for approval of Woe terms and the renewal of this agreement." During our initial discussions, Million Air asked for negotiations be open in the following areas: Paragraph 4 Term: Would like to have a 10 year lease Paragraph 5. 1 Terminal Rent: They would like to receive a $500.00 discount on the terminal rent. Paragraph 5.2 Hangar Rent: They would like to continue to receive a $500.00 discount on the Hangar Paragraph 5.5 FBO Equipment Rent: Delete as already paid off. Paragraph 7. 1 Facilities: Delete as provisions complied with Paragraph 7.8 Towing/Clearing Disabled Aircraft: Would like the provision to be rewritten as they are not trained to remove a 737 or ERJ. Paragraph 7. 11 Emergency Plan: Million Air has an emergency plan but would like to have their requirements specifically outlined as they are in the Airport's Emergency Plan Paragraph 12: Security Control: Million Air has security control procedures in place but would like the requirements more specifically enumerated in the Use of Lease Document. Million Air also requested the former salon space for additional office space and flight planning and a pilot briefing room. Million Air Houston is working hard to procure Drake as a training site for Military aircraft along with several other Million Air facilities. It is anticipated that should the training and fueling agreement be approved, there will be a need for a pilot briefing room to facilitate the training that the crews would be doing at Drake. Million Air would like the additional space at no additional cost. RECOMMENDATION: Staff has begun a review of the Use and Lease Document to see if there are provisions that need to be changed for the Airport. The purpose of this memo is to keep the Airport Board in lTe loop as we begin the negotiations. Million Air is a vital contributor and an important team member to the • success of our airport. They represent the City and the Airport in excellent fashion and contribute significantly THE CITY OF FAYETTEVILLE, ARKANSAS to the financial well being of the Airport Budget. They have clearly met our initial expectations to create a first • class environment of customer service and professionalism and we appreciate their diligence and expertise. If not for the national recession, I am certain that their revenues and our revenues as a result, would be substantially better. It is our intention now to negotiate a mutually beneficial agreement. • •