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HomeMy WebLinkAbout2012-08-09 - Agendas - Final • Director Ray Boudreaux aye evl e Chairman Bob Nickle Financial Coordinator lames Nicholson naxcrcsns Vice Chair Janice Stanesic Senior Secretary Louise Powers Secretary Mike Gibbs Member Rick Bailey Member Joshua Mahony Member Bill Corley Member Ken Haxel AGENDA Fayetteville Executive Airport Board Meeting . 1 :30 P.m., Thursdav, August 9, 2012 Terminal Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off all cell phones and pagers 1. Welcome. Chairman 2. Approval of the Airport Board Minutes of the June 14, 2012 meeting (no July meeting). 3. Receiving of Reports. A. Director Boudreaux, Aviation Director. B. Financial Coordinator James Nicholson, Budget Report. C. Senior Secretary Louise Powers, T Hangar Report. D. Wayne Jones, McClelland Engineers, Construction Report. E. Museum Executive Director Warren Jones, Museum report. 4. Old Business. A. Update: Pavement Rehab Project. B. Update: Nflight project. 5. New Business. A. Wings Avionics: Complaint. 7. Other Business. A. Items from the Public. B. Items from the Airport Board. 8. Meeting adjourned. NOTE: Next Airport Board Meeting: September 13, 2012 Strategic Planning Meeting: 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/govemmentlaviafion airport emnomic-development@ci.fayetteville.ar.us l• MINUTES FAYETTEVILLE EXECUTIVE AIRPORT BOARD MEETING June 14, 2012 MEMBERS PRESENT: Bob Nickle, Mike Gibbs, Rick Bailey, Josh Mahony, Ken Haxel, Bill Corley MEMBERS ABSENT: Janice Stanesic STAFF PRESENT: Ray Boudreaux, James Nicholson, Louise Powers OTHERS PRESENT: Wayne Jones-McClelland Consulting Engineers, Rick McCurdy- Fayetteville Fire Department, Mark Frankum-SkyVenture Aviation, Peter Mastroianni-Million Air Fayetteville ITEM #1 : Welcome. Chairman Bob Nickle. ITEM #2: Approval of the Airport Board Minutes of the April 12, 2012 meeting. Mike Gibbs said the spelling on a name needed to be corrected to: Neal Bilbe. A motion was made by Rick Bailey to approve the April minutes and to include the spelling correction to Neal Bilbe's name. The motion was seconded by Bill Corley. The motion carried. ITEM #3 : Approval of the Airport Board Minutes of the May 10, 2012 meeting. A motion was made by Josh Mahony and seconded by Rick Bailey. The motion carried. ITEM #4 : Receiving of Reports. A. Director Boudreaux, Aviation Director. Aircraft operations are up, thanks to our local folks for flying, and SkyVenture helps. The fuel sales are not up. The FAA Certification Inspection has been completed and the inspection report is in the agenda package. There was one write up for not putting suspense dates for corrections; that was corrected on site. Most of the Comments were directed towards runway/taxiway markings from Phase I of the pavement rehab project. The stencil marks need to be painted out. Wayne Jones suggested having the contractor come back and fix them. The receivers for the gate clickers have been installed. We are negotiating with a different supplier to get clickers for $50.00 each, instead of $ 100.00. He encouraged all tenants to come in and get their badge. The South Delta hangar looks good, the walk-through was conducted today. Southern Hospitality has closed their catering business. The LPV Approach for RW16 will be published in the September 6`h issue. We had good comments back from the Goodyear Blimp people. The Arkansas Air and Military Museum Lease will be on the City Council's next agenda as a Consent Item. Chairman Nickle mentioned in the Certification Inspection it was mentioned the ARFF truck needed to be replaced. Director Boudreaux stated the inspector mentioned the age of the truck, although it 1 hasn't been used except for training. The firemen are checking on how the Purple K and water can be sprayed at the same time. The ARFF truck was FAA funded. We can use our FAA Entitlement Funds to fix our terminal apron, roll the fund over for three years so we will have enough money. The Arkansas Aeronautics changed their rules yesterday to only allow one SAAG (State Arkansas Aeronautical Grant) and one FAA AIP Grant per year. We have been staying within those limits, but it will hurt the larger airports. B. Financial Coordinator James Nicholson, Budget Report. Stated the aircraft operations are positive; then reviewed the charts in the agenda. The military fuel sales are larger than the itinerate aircraft fuel sales. Pete Mastroianni of Million Air said he is working to bring in even more military aircraft to train at Drake Field. He has recently visited several military bases, Vance, Sheppard, and Columbus next week. Randolph Base is working to have their training here in October. Roger Woolsey has been at Maxwell talking to their C130 people, and the Marines plan to use us on a regular basis. The military fuel sales are about to double. When they do stop overnight, they use a rental car, hotel, and food. James noted that having military training take place at Drake Field affects the local economy. Speaking of the Airport Budget, he said we are ahead of budgeted amounts, but there will be a couple of big payments near the end of summer. Also, we are replacing an air conditioner at the FAA office. Director Boudreaux invited the Board to tour the South Delta hangar. . C. Senior Secretary Louise Powers, T-Hangar Report. Reported there were two singles and two twins that are vacant. There are nine hangars rented for storage. Anyone needing a hangar is encouraged to come to Drake Field. D. Wayne Jones, McClelland Engineers, Construction Report. Chairman Bob Nickle thanked Wayne Jones and McClelland Engineers for the cook-out lunch they provided prior the Airport Board meeting. Wayne said it gave everyone a chance to visit with all the tenants, Board Members, McClelland's staff, and the airport's staff. The hangar rehab inspection was conducted on June I " and all was in good shape, also the hangar walk-through was conducted today. Phase II of the Pavement Rehab will seal coat all the remaining asphalt aprons. The project is on the City Council agenda for next week. There were three bidders. Director Boudreaux said the low bidder is from Mississippi and undercut the local bidder by $ 15,000. The timeline is 45 days and will have to coordinate the T-hangar ramp work with the T-Hangar tenants, and the runway may have to be shut down one day. E. Museum Executive Director Warren Jones, Museum Report. Director Boudreaux said their newest addition is a J3 Cub, that Frank Doughty has on permanent loan. There is a connection to the Cubs, the museum hangar was noted for cubs when the hangar was built. He said: Thank you Frank, from the museum. ITEM #5: Old Business. None. ITEM #6: New Business. A. SkyVenture Lease Amendment to the Corporate Hangar Lease. The rent has not been increased . A motion was made by Josh Mahony to approve the Amendment and forward through the City's Contract Review. The motion was seconded by Ken Haxel. The motion carried. Mark Frankum thanked the Board, and said they are down to one location, Fayetteville. They are looking forward to next year. 2 r 1 B. Lease with NFlight Aviation, Inc. Director Boudreaux explained that NFlight had asked to rent a corporate hangar, but wanted it modified, to add a two-story office and distribution warehouse in the hangar. The rest of the hangar would store aircraft. There is not any State grant money available so we want to rent the hangar at a reduced rate until the modification can take place and then the rent will go up to $3 ,000.00 per month. It will be a ten year lease with a ten year renewal. He will also be renting temporary space in the terminal building, where the catering company was located, until the hangar modification. They did not want a portable building located inside the hangar. Director Boudreaux said he would be attending the State Aeronautics Meeting in Little Rock in July and will talk to them about a grant. A motion to approve the lease was made by Rick Bailey and seconded by Ken Haxel. The motion carried. C. Lease with City of Fayetteville IT Department for Data Center on the Airport. We will charge them rent as the facility was built with FAA funds. Areas not rented by IT will be the fire truck bay and the maintenance shop and their garage. A motion was made by Bill Corley to approve and forward through the City's Contract Review. The motion was seconded by Josh Mahony. The motion carried. ITEM #7: Other Business. A. Items from the Public. Director Boudreaux introduced AOPA' s new Airport Representative for Drake Field: Rick McKinney. B. Items from the Airport Board. Chairman Nickle said he would not be available for the July meeting. If a meeting is needed in July, then a Called Meeting will be arranged. The next Airport Board Meeting will be the second Thursday in August. Chairman Nickle called attention to the Air Race Classic magazine. One of the entries in the race is two local ladies. Next year the Air Race will end at Drake Field and will be a big event here on the airport. It will bring in a lot of people to the area who will be renting cars, hotel rooms and will be dining out. A reminder for everyone to be careful, last weekend a red shop towel was found on a taxiway near the runway. That could be dangerous for aircraft. Chairman Nickle asked that warning be put in the tenant letter in CAPS. To move around in the Airport Movement Area you must first attend Airport Driver Training from Ray Boudreaux. Mike Gibbs asked about any Past Due Accounts with the airport. He said he thought it would be good if tenants knew the Airport Board was interested in payments being current. James reported the only concern is Southern Hospitality, everyone else is keeping up. Mike asked that there be a section in the Board Agenda regarding Past Due Accounts. It was noted that more people are using the on- line method of payment. Josh Mahony mentioned the PIGShibition would soon have the pig on display at the airport. The Meeting Adjourned at 2:34 p.m. Mike Gibbs, Secretary Date 3 THE CITY OF FAYETTEVILLE, ARKANSAS "Pay e dv AVIATION DIVISION 4500 5 School Ave, Ste F Fayetteville, AR 72701 S P (4791718-7642 DIRECTOR' S MONTHLY REPORT JULY, 2012 FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD August 1, 2012 • AIRPORT ACTIVITY: Operations and now fuel sales have broken through the levels of the same period last year. With any luck, we will be able to call 2011 the bottom of the slide for Drake Field. Fuel Sales are near 1000 gallons more that the same period last year. Operations are 15% over last year. • AIRPORT SECURITY: In case you forget your Security Badge, you may press the red button on the gate controller pedestal to call the Million Air Service Desk. This will work during normal hours from 0600 until 2200 weekdays and 0800 until 2000 on the weekends. If you don't receive an answer, call 443-4343 for the line service technician. We have a few wireless transmitters available for purchase for $50. Just see Lou. • CORPORATE HANGAR LEASE : NFlight Technology has signed a lease for the middle hangar on the south side of the south apron pending improvements to the building including office and production space for the business. McClelland Consulting Engineers is designing the project and we hope to be able to present our grant request to fund the improvements at the September meeting of the Arkansas Aeronautics Commission. They will meet at the AAOA conference in North Little Rock. • FAA WILDLIFE HAZARD ASSESSMENT: The FAA finally received the report and we have received their comments. Comments have been forwarded to Loomacres for corrections. Loomacres also conducted the assessment for XNA and a similar letter was sent to them. • LPV APPROACH FOR RUNWAY 16 : Mr. Nugent, with the FAA, reported that the new approaches to Runway 16 will be published in the September 6 issue. • FAA AIP PAVEMENT REHABILITATION GRANT PROJECT: We have completed all requirements and the Mayor has signed the grant offer for the project. This project will apply Rejuvaseal to all remaining asphalt pavements including the T hangar area and the South Executive Apron. The project will also repaint some of the runway markings. We hope to start the project in September. • PAY ONLINE HERE : The City has now established a Pay Online option for City Customers. Even T Hangar tenants can pay their rent on line using Visa and Mastercard without additional fees or service charges. • HANGARS FOR RENT: We now have 6 T Hangars for rent. Fortunately, all of the large Corporate Hangars are full. We have started to lease for storage again but will limit Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS the total for storage to ten. We will offer one free month for T Hangar leases for aircraft. • DRAKE FIELD ON FACEBOOK: We now have 221 friends that track the activities at Drake through the FB Website. Check us out and click "Like" at http://www.facebook.com/DrakeFicidAi!port. Our fb page has a new feature that you might enjoy. Click the "KFYV ATC Feed" button just under the main header to stream Drake Tower Air Traffic Control, Razorback Approach Control and Memphis Center. Real time air to ground and ground to air radio communications right from your computer. You can also access a flight simulator on the City Web site in the aviation section that allows you to fly a J-3 Cub to land at Drake Field—FUN! • AAOA UPDATE : The second quarter meeting was held July 11th following the State Aeronautics Commission meeting. We met at Henderson State University and received a tour of the Aviation Technology Department. AAOA provides scholarships to Henderson State for aviation students. AAOA is working hard on the fall conference to be held at the Wyndham Hotel and Conference Center in Little Rock. The conference will be held September 23-25 . We have invited FAA to participate in our conference as they have cancelled their fall conference. • ARKANSAS AIR AND MILITARY MUSEUM : Warren Jones and staff at the Museum saved a Gully Park series performance by providing the White Hangar for the concert. On very short notice, we were able to arrange temporary storage for our aircraft in the South Delta Aviation Hangar so that the out-of-town band "Matt the Electrician" could perform. About 200 folks made the event. The City of Fayetteville Parks Department was very grateful and the Museum made some valuable points for support and cooperation. Thanks to Derrell Ridell for letting us use his hangar for the evening. • AIRPORT EMERGENCY PLAN (AEP) TABLE TOP DRILL: Scheduled for August 30th at 3 :30 p.m. in the Airport Conference Room. Submitted, ie 4e Ray M. oudreaux, Dir ctor Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 • aeevle ARKANSAS 1 . . Airport Progrbas Report TO: Fayetteville Executive Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: August 9, 2012 Tower rations Cumulative MONTH 2008 2009 2010 2011 2012 MONTH 2008 2009 2010 2011 2012 JAN 2180 2492 1,932 1,917 2,552 JAN 2,180 2,492 1,932 1,917 2,552 FEB 2,629 2,902 2,214 1,320 2,138 FEB 4,809 5,394 4,146 3,237 4,690 MAR 2,333 2,807 2,418 2,818 2,161 MAR 7,142 8,201 6,564 6,055 6,851 APR 2747 2,629 2,775 2,254 2,763 APR . . 9,889' 14830 -9,339 - 8,309 9,614 MAY 3032 21722- - 3015 2,627 3,180 MAY _ 12,921 13,552 12,354 10,938 12,794 JUN 2,727 2,676 2,531 2,859 3,195 JUN 15,648 16,428 14,8&5 13,795 15,989 JUL 3.657 31100 2,895 2,758 3,050 JUL 19,305 19,528 17,780 16,553 19,039 AUG 3.358 2,868 2,513 2,678 AUG 22,663 22,396 20,283 19,229 SEP 3,559 3577 2,684 3503 SEP 26,222 25,973 22,977 22,732 OCT 3,350 2671 3,125 2,998 OCT 29,572 28,650 26,102 25,730 NOV 2,739 2,586 1964, 2,379 NOV 32,311 31,236 28,068 28,109 DEC 2,015 1,842 1 1,841 1 2,184 DEC 34,326 33,078 29,907 30,273 Monts A 2,861 2,757 2,492 1 2,523 1 2,120 lAnnualChg 1 3.73% 3.64% -9.59% 1.22% 15.02% YE Estimate: 33,305 Opai®•9�1 1 -A114Q -MIT A&A � Mlq NtdOwallrnPQ91»w30 rnevEmmuveut l9A -4 _ m ME : 7p - � � 1 *�M ME If 2UA� JIM 1� ICV R M as w M w U a Arm Ams M" Sda am� Qp paTYPOO( trnACps _rc -Al rgNitmew etbW110FAYetelePATCT _I1rrG ra .n ra.r�c tm aoa saa 5A Tina om � i 100{ 1000 Im ya 0 000 A9 Oc w lb, l)c b M W Oc off AI AC Itim Ib OC Y ti W Aa It" tit L ftlww WI)er frit VON +O +I /a0• m suer MW * " M a 0 4 N It Q �1 .O : . Fuel Sales ClImulative — WAMB WAM 27,8M I ^I � �, .^.� � 41,12B 3QO82 ®�,' ,ti"+� ®"' FRI MMU 4497 WAR 39,069 4E76M" 41.Mg 37,333 A827 MOR 13D,457 1M167 11ZBB 94,178 IM516 APR 412% 31,705 3Q763 Z7,611 27,005 APR 171,732 157,872 14A80 121,789 113MI WAY 37,M7 33.136 31,018 2UM 29,481 WY' 2M319 191.00B 174,5M IGM5 143M ® 3D,837 ������ © 2Q156 m 2)1,8M � 3Z114 `1� t2A892 2 1 8 �JLL^� / 11 �y4W 22.:6 ...: .IC 1 ALG 35,W 25.018 , 4011l 2afiffi I , 3MO97 2M25 . =43D Z!7,1491 SM 1 '211 3X 1M 2MCM I OGr 9Z32,9 %11 6 407, YE Estimate: 350,809 RELUM. N z 45 3W r � ,, r 35 2 am a MIM IV n 3D WID„ � t1 ball 15 � IIA ��1Is I MM 1 nig - "; 111 � � 1 � 1111 � f11 � 1 � � 1111 M2 Cumukffttv*Avg Fuel Sales by Pament of Type 9110 El He AM MY AW Gff ; I111111 � Local Fuel Prices: Fuel prices within 50 miles of FYV as of 08/07/12 Ident FBO Name Jet FS 100LL FS 100LL SS 91 MoGas AS Jet A $ toot A s tODSS TOH City of Tahlequah both selfsery 4.99 5.09 NC 0.10 SLG City of Siloam S rin s 5.23 5.39 4.89 0.17 0.10 0.10 ASG Pinnacle Air Services 5.85 5.80 5A0 0.20 0.15 0.15 FSM TAC Air 5.88 6A9 5.95 0.22 0.10 0.11 XNA Regional Jet Center 5.99 6.64 0.20 027 VBT Summit Aviation 6.00 5.96 5.85 NC 0.11 NC ROG Beaver Leke Aviation 6.16 6.09 0.11 0.12 FYV Million Air Fayetteville / Ci SS 6.40 6A9 5.75 3.77 0.20 NC NC Fuel Prices: National August 2012 Source: GlobalAir.com Aviation Fuel Current US Fuel Prices Current Fuel Prices & Averages by Region Norlhwoslklountein NoW En9l rid Great Lakes a 6 • Z x6 , 66 ® _ Eastern Central A�IIaO a 6 . 31 8 slain.Padhc ©® a66 _ Sou1Mm SbulEwml Alaska a6 • aa O TayeV S FAYETTEVILLE EXECUTIVE AIRPORT OPERATING SUMMARY IJONTH ENDING 773112012 AIRPORT BOARD OPERATING ACTIVITIES 2010 2011 2011 2012 2012 2012 Actual Budget Actual YTD Budget Budget YTD Actual YTD REVENUE Rents & Leases 448,383 452,900 444,147 440,900 257,192 268,546 Aviation Fuel 128,208 117,900 114,865 119,500 69,708 81,319 Contract FBO 110,764 110,500 83,815 70,900 41 ,358 41,384 Miscellaneous 14,745 7,100 11 ,869 11 ,900 6,942 4,380 Operational Transfers - FEMA Reimbursement - - 15,857 - - - NON-OPERATING INCOME Sales Tan Revenue 27,110 24,200 29,733 26,000 15,167 7,343 Non-Op Miscellaneous - - (100) - - - INCOME RECEIVED FROM OPERATING ACTIVITIES 729,210 712,600 700,187 669,200 390,367 402,973 EXPENSES Personnel 315,079 329.849 331,465 341 ,673 202,607 190,018 Materials & Supplies 12,335 17,741 12,990 22,545 13,151 15,560 Aviation Fuel Purchases 76,631 75,810 81 ,584 90,328 52,691 47,904 Services & Charges 185,161 234,128 200,230 231 ,896 135,273 98.262 Cost Allocation to General Fund 7,915 7,915 7,915 7,915 4,617 4,620 Maintenance 36,335 55,123 48,137 64,490 37,619 30,269 Interest on West GA Hangars Loan (accrued) 30,333 16,800 13,237 6,328 3.692 3,692 INCOME USED FOR OPERATING ACTIVITIES 663.791 737,366 695,557 765,175 449.650 390.325 NET INCOME FROM OPERATING ACTIVITIES - GAIN / (LOSS) 65,419 (24,766) 4,629 (95,975) (59,283) 12,648 INVESTING ACTIVITIES 2010 2011 2011 2012 2012 2012 Actual Budget Actual YTD Budget Budget YTD Actual YTD NON-OPERATING INCOME Interest on Investments 17,595 12,000 5,098 7,800 4,550 2,097 Other - Gain (Loss) on sale of assets 1,786 - - - - - CAPITAL IMPROVEMENTS EXPENSE 07039 AIP #37 Correct Runway 16 Safety Area Deficiency Phase 11 6,907 - - - - 07039 AIP #38 Correct Runway 16 Safety Area Deficiency Phase 111 2,772,052 491,901 391,775 - 5, - 10022 AIP #39 Wildlife Hazard Assessment 24,904 33.205 33,205 - - 10028 Airport Fuel Farm Repair 20,119 - (512) - - 11017Airport Security Improvemenls - 179,788 128,693 51 ,095 'u 51 ,078 11019 Airport Stormwater Protection Plan Update - 2,500 2,500 - ? - 11023 AIP #40 Pavement Rehab & Re-Marking - 252,102 252,069 - n - 12002 Hangar Rehab - 4248 S School - - - 263,250 262,623 12012 AIP #41 Pavement Rehab & Re-Marking Phase II - - - 147,252 11,413 USED FOR INVESTING ACTIVITIES 2,804,600 947,496 802,631 453,797 323,015 FINANCING ACTIVITIES 2010 2011 2011 2012 2012 2012 Actual Budget Actual YTD Budget Budget YTD Actual YID LOANS Payments on Loan Principal (accrued) 46.667 37,334 28,030 15,530 9,059 9.059 One-time Paytlown an Hangar Loan 305,626 - GRANTS STATE / FEDERAL Due/Received from State Grants on Fed Projects - 206,154 195,779 34,417 16,558 Due/Received from AIP #38 Correct RW 16 RSA Phase III 2,633,449 272,238 372,186 - - Due/ReceNed from AIP #39 Wildlife Hazard Assessment 23,741 31 ,463 51,343 - I - Due/RacaNetl from Dept Aero - Fuel Farm Repair 19,027 - - - o''Due/Receivedfrom Dept Aero - Airport Securely Improvements - 144,000 - 144,000 'w 143,816 Due/Received from AIP #40 Pavement Rehab & Re-marking - 239,497 239,465 - 'r - Due/Receivedfrom Dept Aero - 80/20 Hangar Rehab - - - 210,600 n 210,098 Due/Recelvetl from AIP #41 Pavement Rehab & Re-marking Phase II - - - 105,741 r 10,271 NET INCOME FROM FINANCING ACTIVITIES 2,629,550 856,018 525,118 479,228 371,684 AIRPORT CASH BALANCE 889.106 908,504 616,223 545,679 677,540 CURRENT ENCUMBRANCES (CAPITAL) MICE TASK ORDER #8 - Design Pavement Rehab 11 18,000 7,500 Pavement Maintenance Unlimited LLC - Const Pavement Rehab II 99,190 99,190 LONG TERM LIABILITIES Hangar Loan Principal 217,416 208,357 APPROVED GRANTS (Not yet accrued) - CAPITAL PROJECTS State Grants on Federal Projects (11,749) AIP 41 - Pavement Rehab & Re-marking Phase II (105,741) AIRPORT CASH MINUS LIABILITIES 211 ,073 @YE 479,982 1 i AVIATION Rule riles aviators Airport set to bar mechanics who don' t have official permits By Saul Hubbard The Register-Guard Published: (Sunday, Jun 24, 2012 05:OOAM) Midnight, June 24 Eugene Airport officials have decided to crack down on who can provide paid aircraft maintenance to the private plane owners who lease space at the airport, a decision that has upset some of these owners. A longstanding airport rule allows only parties who obtain a permit from airport administration or its "fixed-based operator" — Atlantic Aviation — to perform paid maintenance work on general aviation aircraft, meaning most planes other than airline, military or cargo planes. But several plane owners with hangars at the airport say the rule hasn't been enforced in recent years, allowing several certified but small-time aircraft mechanics to gain access to the airport for regular maintenance jobs without a permit — a practice known as "third-party" or "through-the-fence" maintenance. The airport is only cracking down now, those plane owners say, because Atlantic Aviation pressured the airport to do so. As a fixed-based operator, Atlantic contracts with the airport to provide refueling, maintenance and aircraft management services, primarily to the general aviation community. Officials estimate there are 210 such planes based at the airport. Atlantic — which is headquartered in Plano, Texas, and operates at 59 airports nationwide — took over as the Eugene Airport's fixed-based operator last summer when it bought the previous service provider, Flightcraft, from the Pap6 Group. Airport spokeswoman Cathryn Stephens said there has been no change in policy from the airport's perspective. If third-party maintenance has been occurring in recent years, airport officials were unaware of it, she said. She said the airport began looking into the issue earlier this year after a complaint by Atlantic. At that point, she said, airport officials decided to review its own rule against third-party maintenance, allowing the small-time mechanics to continue operating during that review. In a May 17 memo, however, the airport informed its general aviation tenants that it was sticking to the original rule and that all third-party maintenance had to cease by June 15 . "We want to create an equitable business system ... and ensure our permanent (maintenance providers) can stay here," Stephens said. Stephens said that one other company, Eugene Flight Center, currently has the necessary permit from the airport to provide maintenance service to general aviation planes. She added that the airport is willing to work with anyone else who wishes to receive a similar permit. There are also exceptions to the rule. Experimental, or homebuilt, aircraft aren't required to go through Atlantic or the Eugene Flight Center. Employees of aircraft manufacturers can be brought in to work on that manufacturer' s models. And in cases where Atlantic and Eugene Flight Center tum down the work, plane owners can bring in their own mechanic. But those answers aren't satisfying several plane owners. Bob McManus, president of the Eugene chapter of the Experimental Aircraft Association, said many owners have said they are frustrated with what he calls "the change in enforcement." "It's like you have your favorite car mechanic," he said. "A lot of (general aviation) planes have peculiarities or are rare. ... I want to be able to bring in someone who specializes in my type of aircraft. I should still be able to." McManus says that many plane owners are generally upset with Atlantic, due to increases in fuel and service prices since it came in. The company didn't even have a full-time mechanic in Eugene until recently, he added, whereas its predecessor, Flightcraft, had several on staff. Bill Stewart was one such Flighteraft mechanic until he was laid off in early 2011 , several months before the sale to Atlantic went through. Since then, Stewart and some of his former colleagues have been repeatedly hired to work on planes at the airport by owners who say they trust them with their planes. Bob Silber owns a rare plane called a Navion, a model that was first introduced in the 1940s. Silber says he doesn't have a problem with Atlantic but does object to the airport's rule. "I don't like to be forced to use whoever happens to be based at the airport," he said. He also doesn't like what the lost business will mean for Stewart, who Silber describes as a "hard-working guy who's just trying to make a living." "It' s against the American business philosophy to create a monopoly like this," he said. But Will Kishpaugh, manager of Atlantic's Eugene operations, says it was the third-party mechanics who had the unfair business advantage, as they were able to undercut Atlantic's prices by not having to open an airport-certified repair shop, and not carrying any kind of insurance. The third-party mechanics were able to charge between $35 and $50 an hour, he said, easily beating Atlantic, even after the company dropped its hourly rate by $20 to $70 an hour. "It was predatory pricing and they took a substantial amount of business from us," he said. Kishpaugh says he understands that plane owners like working with specific mechanics. "But if the city is going to require us to meet certain standards," he said, "(the third-party mechanics) should have to as well. ... The rules are the rules." He added that plane owners could always fly to a variety of nearby airstrips to get their aircraft serviced. Stewart said he was willing to set up his own airport-certified shop to compete with Atlantic because he wasn't "trying to do anything behind anybody's back." But he was unable to meet what he characterizes as the airport's "over-the-top" regulations, after months of haggling. The airport would have required the shop to hire a clerk or secretary, can, a significant amount of insurance, have access to a paved and well-lighted parking lot, and have an on-site bathroom, among other features. For the small-time operation Stewart had envisioned, it would have meant too much overhead, he said. "I feel like anybody who' s trying to make a living in these economic times should be allowed to do so," he said. "I was willing to work with the airport, but to just have `Big Brother' (the airport) come in and say `no,' is tough to take." "It' s against the American business philosophy to create a monopoly ..." — Bob Silber, OBJECTING TO A EUGENE AIRPORT RULE ON WHO CONDUCTS AIRCRAFT MAINTENANCE Story I of 5 Next Story: Newesthones reach out and touch Go Back Subscribe to The Register-Guard Dash True grit Mired in muck is par for the course at this fun run. Ever daydreamed about swimming through mud . . . while wearing a tutu? Your 10-year-old self would have loved that, right? . .. Page 1 of 7 r -Ray Boudreaux - Airport Alert: What Sequestration Could Mean for Aviation From: Gwen Papineau Basaria <gwen.papineaupaaae.org> To: <rboudreaux@ci.fayetteville.ar.us> Date: 8/1 /2012 3 :21 PM Subject: Airport Alert: What Sequestration Could Mean for Aviation 1 SS O. A 't, .J 1 .N OF AIRPORT EXR&UTIYES t z A A E D e l I .�R" - C' S'qu.,E XNp a r i e ALA4 AIRPORT LEGISLATIVE ALLIANCE AIRPORT ALERT What Sequestration Could Mean for Aviation August 1, 2012 We thought you might be interested in the following article detailing what . threatened across-the-board spending cuts scheduled to take place on January 2, 2013 as part of the "sequestration" process could mean for aviation programs should they take effect. The article was written by Scott Lilly, a recognized federal budget expert, who served as Democratic staff director for the House Appropriations Committee for a number of years. While no one knows at this point exactly how the across-the-board cuts would be implemented or whether they will actually occur (both sides profess to want to find a way of avoiding sequestration in the anticipated post-election lame duck session), the article serves as a vivid warning of the impact that ongoing debates in Washington could have on airport priorities. Your ALA team has been and will remain actively engaged with members of Congress in highlighting the need to spare AIP and other key programs from the budget ax, and we encourage you to continue to highlight with your elected officials the importance of federal funding to key projects at your airport. We will, of course, keep you apprised of developments on sequestration and other key debates throughout the Fall. Oops, I Lost the Airport 8/ 1/2012 file:///C:/Users/rboudreaux/AppData/Local/Temp/XPgrpwise/50194963 FAYETTEV ILLEC... Page 2 of 7 Automatic Federal Budget Cuts Will Wreak Havoc in the Skies SOURCE: AP/Danny Johnston Air Force One splashes water on the runway at Northwest Regional Airport in Arkansas. This airport and many like it face possible closure if budget sequestration forces the Federal Aviation Administration to make severe budget cuts. By Scott Lilly ) August 1, 2012 See also: U.S. Airports That Face Closure Under Looming Automatic Spending Cuts As many as 106 U.S. airports could lose air traffic control service-and effectively be shut down-under automatic spending cuts scheduled to take effect January 2, 2013, according to a new Center for American Progress analysis. Here's a list of airports that could be affected. And here's an interactive map showing how the entire country will be affected. The Federal Aviation Administration will have to slash its budget in 2013 by about $1.35 billion, under across-the-board spending cuts known as "sequestration." And under the terms of the 2011 law dictating the cuts, FAA officials will be unable to shield air traffic control (or any other FAA-funded service) from cuts. To minimize disruption at major airports, therefore, FAA officials will likely be forced to cut air traffic service at airports where they would have the least impact on the traveling public-the smaller airports. The crisis facing the Federal Aviation Administration is illustrative of problems every federal agency will face in the coming months, unless Congress finds a smarter way to ease deficits-one that includes a combination of responsible budget cuts and tax increases. Here's how we came up with this troubling conclusion. One year ago the nation was enduring the spectacle of Congress refusing to enact legislation necessary for the government to pay its bills. After months of wrangling and only hours away from the country defaulting on its payments, lawmakers finally agreed to adopt the legislation needed to increase the federal debt ceiling-but only on the provision that a rider be added. That rider required deep automatic spending cuts to discretionary programs in fiscal year 2013 if a bipartisan "super committee" could not agree to specific cuts or revenue increases. To absolutely no one's surprise, the so-called super committee failed to agree to any budget cutting, which means the clock is now ticking down to some $1.2 trillion in automatic spending cuts, also called budget sequestration. It is hard to imagine that this rider could have been crafted in a way that would make it more onerous or destructive. By law, the same amount must be cut from every "program, project and account." In some instances program managers will have a certain degree of latitude as they try to minimize the damage. In others cases their hands will be tied. As a consequence, the results of these mandated spending cuts to vital programs and services will be unexpected and sometimes bizarre. file:///C:/Users/rboudreaux/AppData/Localremp/XPgrpwise/50194963FAYETTEVILLEC. .. 8/1 /2012 Page 3 of 7 In recent weeks there has finally been a great awakening to that reality-but solely with respect to the impact this process will have on the Department of Defense. Rep. Paul Ryan (R-WI) has introduced legislation to block the defense cuts: Any sequestration order issued by the President under the Balanced Budget and Emergency Deficit Control Act of 1985 to carry out reductions to direct spending for the defense function (050) for fiscal year 2013 pursuant to section 251A of such Act shall have no force or effect. But what about the other automatic spending cuts? Is there any evidence that the budget sequestration process, which most agree would wreak havoc at the Pentagon, wouldn't have similar negative impacts elsewhere? Moreover, does anyone care? The answer to that last question, at least at this juncture, is apparently no. But certainly these are questions that a prudent member of Congress should ask-if not before voting on the legislation, at least before going home to campaign in October with no guarantee that such cuts will be averted. I decided to take a closer look at the specific impact this sequestration process will have on the Federal Aviation Administration, a subject I have written about in the past. That agency, which is responsible for the safety and efficiency of all aspects of civil aviation in the United States, has a $15 billion annual budget distributed among a range of activities. It provides nearly a fourth of those funds as grants-in-aid to local airports. That might be a place where the largest share of the cut could be taken, but the sequestration law won't allow it. Nor will it allow a disproportionate whack to be taken at facilities and equipment, which accounts for another fifth of the agency's budget. The required 9 percent to 10 percent cut in Federal Aviation Administration spending, about $1.35 billion, must be taken equally from all activities, and that includes operations-in other words, the control towers. Even within the agency's operations account there is little flexibility. Some airports, mostly smaller ones, are operated under contract, which means the control towers are run by employees of a private contractor and not by Federal Aviation Administration controllers. But since the money that supports those contracted services are discussed separately in the Appropriations Committee reports that fund the agency, they are, under the terms of the sequestration law, a separate activity and must be cut by no more or no less than the funding provided for agency- operated control towers. Then there is this additional complication: If employees are released temporarily, sometimes referred to as furloughed, the government does not face employment termination costs. But under federal law, if an employee is furloughed for more than 20 workdays (four weeks), that becomes what is termed a reduction in force, or a permanent separation. As is the case with many private-sector employers, a formal separation triggers a number of procedural options for the employee, as well as separation benefits. As a result, the government saves only a portion of the first-year file:///C:/Users/rboudreaux/AppData/LocaVremp/XPgrpwise/50194963FAYETTEV ILLEC... 811/2012 Page 4 of 7 l salary from a reduction in force, and if the reduction is not initiated until the second quarter of a fiscal year, then that portion is quite small. In many cases it might be less than a third of the annual pay and benefits of the employee. Similar to other government budget accounts that are made up entirely of salaries and expenses, the air traffic operations budget can only be cut by cutting personnel, and if the sequestration lasts beyond a month or two, the size of the personnel cuts will have to be at least two or three times larger than the dollar reduction in the budget to obtain that level of savings within the requisite timeframe. As a result, the Federal Aviation Administration is quite likely to start with furloughs, which entail no termination costs, in hopes that Congress will shut the sequestration process off before the agency is forced to go to reductions in force. So where would the agency furloughs be targeted? I mentioned in a previous column the possibility of "flightless Fridays." That, of course, would be an economic calamity of unprecedented proportions and the agency administrator and the secretary of the Department of Transportation can be expected to do everything possible to avoid such an outcome. Ultimately, that kind of large-scale disruption in the nation's air transportation system is where we are headed if the sequestration lasts a full nine months, and the Federal Aviation Administration is forced to make large reductions in force to live within the sequestration spending levels. In the beginning, however, they are likely to consider simply furloughing staff, and I expect that they will be guided by the following statistics when deciding where to cut. Every year about 730 million passengers board commercial air flights in the United States. While the Federal Aviation Administration provides direct services to a little more than 200 airports and funds contracts that provide service to nearly 250 more, 70 percent of the nation's passengers board planes at the nation's 29 largest airports, otherwise known as the "major hubs." Another 70 of the larger airports account for an additional 25 percent of enplanements, leaving the remaining 341 or so towered airports with only 5 percent of all passengers. In 2011 the Federal Aviation Administration had 15,236 controllers working directly for the agency. The budget cut mandated by sequestration is about a 9 percent cut to the annual budget, but the law passed by Congress this past year requires that cut to be made in a period of only nine months (January 2013 through September 2013), meaning that it is actually a 12 percent cut during that period. A cut of that size would require 1,828 controllers to be furloughed, even if administrative, relocation, facility-shutdown, and other costs associated with executing such a large furlough are not counted. The actual number of furloughs required would certainly be more than 2,000 and perhaps in excess of 2,200. But exactly which 2,000 controllers would get notices? An educated guess would be that the cuts would come from the airports where the loss of controllers would have the least impact on the traveling public, specifically the smaller airports. To determine which airports would be most likely targeted for controller downsizing, I consulted the Federal Aviation Administration's annual report to Congress on the status of the air traffic controller workforce that details the number of controllers file:///C:/Users/rboudreaux/AppData/Local/Temp/XPgrpwise/50194963FAYETTEV ILLEC.. . 8/l /2012 Page 5 of 7 "Passenger Boarding (Enplanement) and assigned to each airport and the agency's the number of passengers boarding at All-Cargo Data." If you sort U.S. airports by eliminate service to a togetherr the 2,000least those s each airport, Y 000 enplanements will find that you have to a year in order to scrap with fewer than 6000 controllers to furlough. That would total about 94 airports. probably understates the size of the service reduction are In reality, that number p s at the because a significant number he a sectorcontroend not just akeoffslorrlanding directing traffic flying throughmany of those controllers must have been assigned . Assuming of the flights that airport to which they of the overall system and the safety be retained for the integrity and the size of the airports that are not being canceled, then the number of airports will be eliminated increases to those with between 700,000 and 800,000 enplanements per year. ort, serving Florida's southwest Gulf coast An air travel catastrophe in the making one of the airports The Sarasota-Bradenton Internationals i g t t# the cusp of being with 6570000 enplanements in 2011, Rhe of Sarasota voted for the .sed past summer. Similar to others in his caucus, he opposed to lose air traffic control. Rep. Vern Buchanan l we need to stop sequestration package this p " Enough is enough, increases in the debt limit, saying in 2010 that, and spending more than we take in." But he reversed himself the Past oted borrowing Speaker of the House John Boehner (R-OH) is for the package proposed by P we're willing to raise the debt ceiling, summer, explaining that, "The bottom line is, but at the same time we want to make sure the tuft. drive some 60 miles to and result in Rep. Buchanan having Florida, every time he returns to But those cuts may a gay, ort will be from the Tampa International Airport in Tamp his home district from Washington. The closure of Sarasota Bradenton airport far more inconvenient for many of his constituents. the beginning of a much larger story Without You could start with Sarasota Bradenton's 15 controllers, who will lose their jobs on January 2, 2013, but they are onlyommercial controllers, the but simply can't handle scheduled ch dine d c )n will have toscancel. That rthe n Unless those flights are the four major airline carriers servicing those flights pilots and flight attendants working two dozen or so flights in and out of that airport each aY• diverted elsewhere, the jobs of the p jobs Equally at risk are will be in jeopardy. Those almost certain to lose thaire handlers. Equa ya t r control are the ground crews, airline mechanics, and bagg g like) some of the airport's concessionaires and very y the car the employees of the hecaoperating out of personnel. Also at the eight rental car companies concessionaires themselves. Also endangered are the desk atten an s, washers, and processing the airport, as well as the parking lot attendants and cab drivers who help get passengers to and from their hotels. the local tourism industry. The But undoubtedly the biggest hit will be absorbed by ort will be at greatest risk, managers and staff of the 12 hotels adjacent to the airport but there will undoubtedly be some fallout for hotel and vacation condo rentals .cal/Temp/XPgrppwise/50194963FAYETTEV ILLEC... 8/ 1 /2012 �AA / 1 /2012/ Page 6 of 7 scattered all across the Sarasota and Manatee counties. Also likely to pay some price for an airport shutdown will be restaurants, drinking establishments, and even local theater and dance groups. How many of the 650,000 people who had been expected to visit the Sarasota area next year will pass on booking stays at Long Boat, Lido, Siesta Keys, or at the other golf resorts dotting the region if the airport closes? Sequestration may give us the definitive answer, but it is a question that most local businesses would rather see left unanswered. The situation for Northwest Arkansas Regional Airport is less ambiguous. More than 20 years ago the legendary Sam Walton, founder of Wal-Mart stores, called then- Rep. John Paul Hammerschmidt (R-AR) to see what could be done to get air service for northwest Arkansas. In 1998 the airport was inaugurated by a visit from former President Bill Clinton, who landed in Air Force One on the newly completed runway. He told the gathered crowd of 8,000 that, "Today, in a sentence, at long last, northwest Arkansas can fly. To me, this symbolizes America at its best, people working on a common goal, across party lines, putting people first, thinking about the future." That airport and the bustling commercial center it serves is now represented by Rep. Steve Womack (R-AR), who argued for most of 2011 that, "It is unconscionable to consider an increase in the debt ceiling without significant and guaranteed limits on federal spending." The sequestration rider which Speaker Boehner inserted in the debt ceiling bill in July 2011 clearly seemed tailored to meet Womack's demand, as he joined with 217 other House Republicans to make it law. But similar to Rep. Buchanan, Rep. Womack may find it easier to talk the antigovernment talk than to live with the consequences. He may also find that the residents of northwest Arkansas are capable of being even more unhappy about sequestering parts of the domestic budget than he and his fellow Republicans are about sequestration at the Pentagon. There will be a lot of unhappy members of Congress when the Federal Aviation Administration announces its sequestration plans, and many House members such as Reps. Buchanan and Womack will be directly responsible for placing the agency in the position that requires closing control towers in their home districts. Included on this list will be Rep. Womack's neighbor to the north, Rep. Billy Long (R-MO), who represents the Springfield-Branson National Airport that boards about 350,000 passengers a year; Rep. Chuck Fleischmann (R-TN), who represents the Chattanooga Metropolitan Airport enplaning a little more than 300,000 passengers a year; Rep. Randy Neugebauer (R-TX), who represents Preston Smith International Airport with 500,000 passengers annually; Reps. Chip Cravaak (R-MN) and Sean Duffy (R-WI), who share the Duluth International Airport; Rep. Reid Ribble (R-WI), who represents Green Bay's Austin Straubel International Airport providing service to 350,000 passengers a year; Reps. Tim Walberg and Fred Upton, Michigan Republicans who share the Kalamazoo-Battle Creek International Airport; Reps. John Barrow (R-GA), who represents the Augusta Regional Bush Field Airport; and Rep. Kevin McCarthy (R- CA), who represents Bakersfield, California, served by Meadows Field Airport. For the past 18 months Washington has been rife with cavalier ideas about a broad retrenchment in the role of government, with little or no attention being paid to the file:///C:/Users/rboudreaux/AppData/Local/Femp/XPgrpwise/50194963FAYET TEVILLEC... 8/1 /2012 Page 7 of 7 real world consequences that would flow from such policies. The Federal Aviation Administration is only one example of the kind of mindless economic chaos that a know-nothing approach to budget cutting can create. Such reckless slashing of vital services will not only fail to diminish the deficit but will also help strangle a struggling economy. The 112th Congress does not presently look like one that will be viewed favorably by historians. And perhaps its greatest contribution will be unintended-providing the American people with a clear lesson on the importance of government services that we have long taken for granted. Scott Lilly is a Senior Fellow at the Center for American Progress, who writes and researches in a wide range of areas, including governance, federal budgeting, national security, and the economy. Todd Hauptli, Senior Executive Vice President Joel Bacon, Vice President ® ® Brad Van Dam, Vice President Gwen Papineau Basaria, Director •„+� Tiuted Email from hi/SafetMsub5tTtbe Try h FREE today. This email was sent to rboudreaux@d.fayetteville.ar.us by nwen oaoineau@aaae.ora I l mdate Profile/Email Address I Instant removal with SafeUnsubscdbe`" I Privacy Policy. AAAE 1 601 Madison Street, Suite 400 1 Alexandria I VA 122314 file:///C:/Users/rboudreaux/AppData/Local/Temp/XPgrpwise/50194963FAYETTEV ILLEC... . 8/1/2012