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2013-08-08 - Agendas - Final
Director Ray Boudreaux aye evl e Chairman Bob Nickle Financial Coordinator James Nicholson T >ncq rsaz Vice Chair Mike Gibbs Administrative Assistant Lauren Treat Secretary Joshua Mahony Member Rick Bailey Member Bill Corley Member Ken Haxel Member Marty Burggraf AGENDA Fayetteville Executive Airport Board Meeting 1 :30 a.m., Thursday, August S, 2013 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 13, 2013 meeting. 3. Receiving of Reports. A. Director Boudreaux, Aviation Director. B. Financial Coordinator James Nicholson, Budget Report. C. Administrative Assistant Lauren Treat, T Hangar Report. D. Wayne Jones, McClelland Engineers, Construction Report. E. Museum Executive Director Warren Jones, Museum report. F. Marketing Committee Report, Bill Corley. 4. Old Business. 5. New Business. A. Airport Budget Submission. 6. Other Business. A. Items from the Public. B. Items from the Airport Board. 7. Meeting adjourned. NOTE: Next Airport Board Meeting: September 12, 2013 Strategic Planning Meeting: 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • vnvv.accessfayetteville.org/govemment/aviation airport_economic_development@d.fayetteville.ar.us FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES June 13, 2013 MEMBERS PRESENT: Bob Nickle, Josh Mahony, Bill Corley, Rick Bailey, Marty Burggraf, Ken Haxel, Mike Gibbs MEMBERS ABSENT: None OTHERS PRESENT: Craig Young-tenant; Jeffry Gates-Arkansas A&M Museum, Mauro Campos-Fayetteville Fire Department; Wayne Jones-MCE; Kate Ward-NWA Times; Mike Bowman-Tower; Rick McKinney-Tenant; Warren Jones-Arkansas A&M Museum; James Nicholson-Financial Coordinator; Lauren Treat-Administrative Assistant ITEM #I : Welcome. Chairman Nickle. ITEM #2: Approval of the Airport Board Minutes of the May 9, 2013 meeting. A motion to approve the minutes was made by Rick Bailey, and seconded by Marty Burggraf. The motion carried. ITEM #3: Receiving of Reports. A. Director Boudreaux, Aviation Director. Airport activity remained about average though slightly less than may of last year. Boudreaux reported that the DLA inspector initially found problems with our water defense system. However, we underwent re-inspection about a month ago which proved to be satisfactory. More discussion of the DLA followed. Boudreaux said we will novate as soon as Roger Woolsey signs the agreement. He said the airport is currently holding about $30,000.00 in military sales which cannot be processed until we are either into- wing agent or the contractor. Once we receive Woolsey's signature, there should be no problem and we can finally process those sales. Another resolution is needed that contains the total project amount for NFlight. Boudreaux predicted the City Council will approve the new resolution with the entire amount. Boudreaux mentioned that IT is working on their new data services building and he said we are still waiting on Loomacres to finish the Wildlife Hazard Assessment. Brief discussion of annual FAA Certification Inspection followed. Lights were our only error. B. Financial Coordinator James Nicholson, Budget Report. Nicholson reported operations were still better than last year but they did seem to dip down in May as did fuel sales. Nicholson discussed contract fuel sales. He said it is beneficial to attract customers with our contract fuel prices; however it drives down our margin. Boudreaux said the revised AvFuel margins are still very good and below retail. Nicholson said we can make the adjustments that are necessary within the marketplace. The key is to maximize net but stay within market place. Nicholson said everyone has been busy getting the FBO running smoothly and organizing how to conduct the FBO business. He said there are 7,500+ gallons of DLA fuel that we have tickets for which have not been processed, and a similar situation is occurring with the contract fuel. Nicholson said there are no changes in capital projects; however, the construction on the corporate hangar will begin soon. Nickle said operations exceed the last five years and fuel sales exceed the last two years, so even with a down month in May, we are still ahead of the ball game. Rick McKinney said he perceives military flights are down. Boudreaux agreed that they are. Nicholson said he discussed this matter with Pete Mastroianni (former GM of Million Air) who said many bases have cut down or eliminated their out and backs and/or limited their training flights do to the sequestration. Brief discussion of delinquent payments followed. C. Administrative Assistant, Lauren Treat, T-Hangar Report. Reported that all T-Hangars are full and five are rented for storage. D. Wayne Jones, McClelland Engineers, Construction Report. Wayne said we are waiting for the City Council's approval the following Tuesday night. He announced the pre-construction meeting will be held the next week. Wayne said he will have more progress to report at future board meetings once the project has actually begun. Bailey pointed out that some of the drainage ditches around the field look silted up after the safety area improvements. Wayne said that channel has been there for a while but maybe a little back hoe work could clear it up. Wayne said he will check it out and give advice on what to do before maintenance starts working on it. E. Museum Executive Director Warren Jones, Museum Report. Warren discussed the Air Race Classic. He pointed out that even though the cable and tie downs were purchased and installed for the ARC, they will be of future benefit to the airport during football games and other times of high volume transient aircraft. He discussed events that will occur during the ARC weekend including the party in the hangar featuring the Jack Mitchell Big Band. Warren talked about using the museum's Stinson Junior to give rides to provide a little revenue for the air museum. Warren said they intend to give rides at the Springdale airport to generate some revenue. Warren mentioned the B- 17 will arrive on Monday, June 24. Then on Tuesday and Wednesday people will be allowed to tour the aircraft and even take a flight in the plane. The aircraft will leave on Thursday. Nickle encouraged everyone to volunteer and contact the museum to sign up and get to work. F. Marketing Committee Chairman Bill Corley, Marketing Report. Corley said the main challenges facing the marketing committee are the FBO branding and visual identity scheme. The airport has the option to go with the City of Fayetteville logo or create a more "own-able" brand. The committee elected to go with the branding route, however the Mayor's office wishes the airport would go the City of Fayetteville route. Corley said he has obtained the COF logo scheme — which the Community Outreach Coordinator (Dede Peters) predicts to change in the near future. For now, Corley said we will use the COF logo with "Flight Support" or "Aviation Services", etc. written underneath. Corley said he will create the graphic file and turn it over to whoever makes signage and uniforms. Boudreaux said the interim uniform patch will be the first name — Fayetteville logo — and aviation underneath it. Patches are easy to change out so it won't be a big deal if things need to be changed as the City logo is updated in the future. ITEM #4: Old Business. Update: SkyVenture Aviation Lease. Nickle said he does not understand why Frankum is still delaying signing the lease because everything within the lease was agreed upon by both parties. Though the airport has not received an official written notice yet, Nickle told the board to prepare for SkyVenture's potential departure from Drake Field. Boudreaux said the airport board has done a good job of partnering with SkyVenture over the years. Bailey said we enjoy having them here; they are an asset and the airport would hate to see them leave, but we can't make their business decisions for them. ITEM #5: New Business. Nickle said both items of new business were discussed earlier in the meeting (Boudreaux discussed FAA cert inspection and Warren already covered the ARC). ITEM #6: Other Business. A. Items from the Public. None. B. Items from the Airport Board. Nickle said he will be unable to attend a board meeting next month so he recommended the board only meet if necessary. Boudreaux may call a meeting if necessary; otherwise the board will meet again in August. MEETING ADJ U D T 2:27 P.M. Jrhony, Secreta Date ? C� dv THE CITY OF FAYETTEVILLE, ARKANSAS a le AVIATIONAR7201y 4500 S School Ave, Ste F Fayetteville, AR 72701S P 14791718-7642 DIRECTOR'S MONTHLY REPORT JULY, 2013 FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD August 5, 2013 • AIRPORT ACTIVITY: July was typical of most hot and steamy months with activity well below the average. If the summer trend continues, we expect August to be more of the same. We remain ahead of last year by 9%. Monthly fuel sales for July were the lowest in several years and reduced our annual sales total below the same period last year by about 500 gallons. The first home football game is August 31St. We are sending out invitations to "fly Drake" and hopefully everyone will buy fuel to get us back on track for the month of August. • FAA ANNOUNCES CONTRACT TOWERS TO REMAIN OPEN THROUGH FY2013 : As we near the end of the fiscal year, the contract tower funding looms large. The congress has moved the funding for towers, including the contract towers to a separate line item so that the FAA can't arbitrarily take funding at a rate larger than the rest of their budget. But as we near the end of the FY we will need to continue to stay in contact with our representatives in DC to insure that the budget (with the new provisions) gets approved by both the House and the Senate. • CORPORATE HANGAR IMPROVEMENT PROJECT FOR NFLIGHT TECHNOLOGY: The project is moving along. The studs for the first floor are in place and they are awaiting delivery of the joists for the second. We will change the designation of the storage room to match the revised project scope which does not include the fire suppression system. The tenant was unable to make his contribution to pay for the sprinkler system so we removed it. • CITY IT DEPARTMENT PROJECT: The building is nearly complete. It is truly a bunker made of concrete from floor to roof. No schedule for the runway bore to lay fiber between the east and west sides of the runway. • AIR RACE CLASSIC A BIG SUCCESS : The event went off without a hitch. The only downer was that Camelia Smith did not bring home the gold. She and her teammate won a couple of legs but the weather delayed their finish. The event was a great benefit to the museum which netted about $8,000.00. • FAA WILDLIFE HAZARD ASSESSMENT: I have talked with Cody Bacuiska, President of Loomacres and he reports that the FAA is reviewing it and he will check with them on the status. John Watterson, the Loomacres employee assigned to this region, was operating out of offices in our airport terminal. Watterson has taken a job Telecommunications Device for the Deaf TDD (479) 521 -1316 113 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS with the City of Fayetteville and his understanding is that Loomacres is looking for someone to take his place in Fayetteville. • HANGARS FOR RENT: We currently have two T Hangars available and 5 rented for storage. • ARKANSAS AIR AND MILITARY MUSEUM: The next big event will be in conjunction with Bikes, Blues, Bar-b-Q and Bombers when the EAA will bring a fleet of aircraft to wow our biker friends and give rides. • FBO CHANGEOVER UPDATE : Novation of the DLA fuel contract is now complete and the City of Fayetteville is the contractor. We started entering the military sales from March 16 until present and hope to have payment within a few days. AVFUEL is working it through for us. Once we receive the payment we will pay Million Air their $ .47 a gallon as negotiated in the buy out agreement. • U OF A CHARTER SEASON NEARS : Preparations are complete for support of the U of A football charters and for home game support. The final piece of GSE — the Air Stairs — has been ordered and is due to arrive by the end of August. The first 757 charter is scheduled for September 20-21 . The first home game is Saturday, August 3151 at 3 PM. We expect a large crowd for the first game of the Bielema era. We will need a shuttle driver if anyone is interested in driving a 15 pax van between the airport terminal and Chick-Fil-A on the corner of Razorback and MLK Drive. This a free service to our customers. • AAOA CONFERENCE SEPTEMBER 15-17 : The 2013 Conference will be in Eureka Springs and promises to be a good one. Our conference team is working hard to present the best possible information for our attendees. Should you wish to attend, you are invited. I can get you a copy of the registration form and agenda. Unfortunately, the airport budget can not support the cost for board members. However since our airport is a member, we can get you the member rate. Respectfully Submitted, Ray M. Boudreaux, Director Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 • a e ev1A5e ; Airport Progress Report _ TO: Fayetteville Executive Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: August 8, 2013 Tower rations Cumulative MONTH 2009 2010 2011 2012 2013 MAPRIO,830 9 2010 2011 2012 2013 JAN - 2,492 1,932 1,917 2,552 - 2,928 92 1,932 1,917 2$ 52 2,928 FEB 2,902 2,214 1,320 2,138 2,540 394 4,146 3,237 40690 5,468 MAR 2,807 2,418 2,818 2,161 2,889 01 61564 6055 6,851 8,357 APR 2,629 2,775 2,254 2,763 2,687 30 - 9,339' 8,309 9,614 11,044 MAY 2722 3015 2627 3180 3,090 552 12,354 10,936 12,794 14,134 JUN 2,876 2,531 2,859 3,195 4,059 428 14,885 13,795 15989 18,193 JUL 3,100 2,895 2758 3050 2,648 528 17,780 16,553 19,039 20,841 AUG 2,868 2,513 2,676 2,951 396 1 20,293 1 19,2291 21,990 SEP 3577 2684 3,503 4,864 SEP 25,973 22,977 22732 26MA OCT 2,677 3,125 2,998 3,320 OCT 28,650 26,102 25,730 30,174 NOV 1 21P586 1 196421379 3392 NOV 31236 28,066 28109 33,566 DEC 1,842 1,841 2,164 2,546 DEC 1 33,0781 29,9071 30,2731 36,112 Month Avg 1 2,757 1 2,492 2,523 1 3,009 1 2,977 jAnnual C -3.64% -9.59%1 1.22%1 19.29%1 9.467% Estimated YE Total: 36,935 Operations - 12 Month Comparison -2012/13 -2011/12 - 2010/11 s,soo 5,600 gg 4,500 4,000 3,500 Z 2,000 1,500 - 1,000 AUG SB oar NOV DEC .WN FEB MAR APR MAY JUN JUL Month OPERATIONS Month Average Annual Comparison MT1NaVEMONt11AVBtAGE 4•5W 4;074 4 ICA 4,000 3. 3,500 3,192 2'945 2'979 2.730 3,160- 3.000 ,9N 2,500 2,390 2,000 1,500 1,000 500 2003.04 2004-05 2005-06 2006-07 2007-08 2009-09 2009-10 2010-11 2011-12 2012-13 Period: Aug - Jul - FBO Fuel Sales Cumulative MONTH 2009 2010 2011 2012 2013 NCNITH 2000 2010 2011 20x2 2013 JAN 36,062 35,528 35,936 27,865 29,621 JAN 35032 TASB 35925 21,865 29621 FEB 43,497 35,466 20,909 2Q824 32,602 FE9 79593 904 M845 57MD MAR 46,608 41,809 37,333 28,827 35,761 M 135161 112803 %17B 85518 97,984 APR 31705 30,763 27,611 27,085 28,155 APR 157,872 1435M 121783 1 671 125139 MAY 33,136 31018 26,206 29,481 25,135 M4Y 191,0$ 17455 147,995 10032 151x/4 JUN 28,218 271216 31,677 32,961 30,918 AN 2IRW 201,800 17x672 176,043 182'192 JUL 28,021 26,628 23,892 28,068 24 961 3 428 564 201111 207153 AUG 1 25,0181 25,011 1 23,585 1 31,835 1 Alm 270 253433 I 727,149 I 25,96 SEP 39,025 39,845 31,879 44,937 SEP 028 2M893 OCT 440578 1 48,581 29,6761 32,537 1 OCT XafflB 341,895 I 2EQ7041 313,40 NOV 1 30469 1 33,7181 32,603 1 28,744 1 INEV 3K337 3755831 32131A 1 31ZU DEC 1 28,732 1 24,4701 23,1031 25,157 1 ICEE I 4gaB 1 40QO531410 331 jMonthlyAvg 1 34,4221 330338 28,7011 30610 1 29,593 JArnsiOn I -13 -3154 . -131 6 t. Estimated YE Total: 359,141 2013 Cumulative Avg Fuel Sales by Pemnt of Type Fuel sales by Month 2013 so DLA XT.8.'A{ NNiAAM.kT,Q.1% JJw 30 El 3 10 mB+MlF10011. BAS®.E7,21.9x B.4% &S® �9 100L .Ox 0 AN RB NAR AM MAY M AL AUG SB OCF MI)J DK Fool&W-12 M C3mpulm -211113 -2MM 720011 Ra.MIB MArMrpeAmotlC6mp616m a1MaYEY)OIUYBIYE ; s y� 91 6.R3 -Ndp MIR e 8,000 a 0 : MAD 7M 05 eDD 3120 A AIB 0 0C1 NY IE AN FEB IRR ANI MY IN AL 7®01 ADI03 21601 2068 2ND 2IDR aolx RNVIt RI41f 720213 sone ppb! bp•Jd Fuel Sales - Avera a Margin Tracking JUL 2013 DATA JET A 100 LL I 100LL SS MOGAS TOT ALL AVG COST/GAL 4. 1582 5.30491 5.2068 4. 1574 4.4178 GAL SOLD 17767 3764 1754 428 23712 GROSS REV 92087 22778 10276 1992 127134 AVG GRS REV/GAL 5. 1830 6.0516 5.8597 4.6597 5.3615 AVG MARGIN/GAL 1 .0248 0.7467 0.6529 0.5023 0.9438 TARGET MRGN/GAL 1 .50 1 .25 0.75 0.50 fflt-03A DIFFERENCE 0.4752 0.5033 0.0971 0.0023 VARIANCE -31 .68% -40.26% 12.95% 0.46% Local Fuel Prices: Fuel prices within 50 miles of FYV as of 08M13 Ident FBO Name Jet FS 1001.1. FS 1001.1. SS 91 MoGas A $ Jet A$ taoUA $ loess TOH City of Tahlequah both selfsery 4.99 5.49 NC 0.01 SLG City of Siloam Springs 5.38 5.78 5.28 NC NC NC FSM TAC Air 5.90 6.79 6.240.03 0.02 0( 03) VBT Summit Aviation 5.95 6.15 5.95 0.10 NC NC ASG Pinnacle Air Services 5.95 6.15 5.65 0.10) 0.05 NC XNA Regional Jet Center 5.95 6.90 0.13 0.09 ROG Beaver Lake Aviation 5.98 6.32 0.10 0.02 FYV City of FayeaNlle 6.16 6.90 6.10 4.31 0.05 0.27 0.30 Fuel Prices: National 8/7113 Source: GlobalAir.com Aviation Fuel Current US Fuel Prices s e Current Fuel Prices & Averages by Region Norlhwusl Knm4nn NurfelwdlN Gmul Lukas Laslem 5 2 , 71. ©�©� Cenhal M 12 2 ©©i©0 5f . } 7 as Wustum Pucfic M0 S 5 , 6 7. tiuuthmn SUuf11Wa51 Alaska mm , 7�3 MEM 0 Tayellrl ARKANSAS FAYETTEVILLE EXECUTIVE AIRPORT OPERATING SUMMARY MONTH ENDING 7/31/2013 AIRPORT BOARD OPERATING ACTIVITIES - ADMIN & MAINT 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD REVENUE Rents & Leases 527,962 511,800 536,243 508,492 296,620 286,782 Aviation Fuel 114,865 119.500 157,525 129,600 75,600 18,091 Miscellaneous 11,869 11,900 8,586 2,900 1,692 7,281 Operational Transfers - FEMA Reimbursement 15.857 - - - - NON-OPERATING INCOME Sales Tax Revenue 29,733 26,000 25,449 25,600 14,933 11,976 Non-Op Miscellaneous (100) - - - - 677 INCOME RECEIVED FROM OPERATING ACTIVITIES 700,186 669,200 727,803 666,592 388,845 324,808 EXPENSES Personnel 331,465 341,673 319,057 336,276 208,160 187,403 Materials & Supplies 12,990 22,545 21 ,315 22,155 12,924 7,077 Aviation Fuel Purchases 81,584 90,328 105,924 93,888 54,768 25.424 Services & Charges 200,230 231,896 225,510 226.122 131 ,905 97,800 Cost Allocation to General Fund 7,915 7,915 7,915 7,915 4,617 4,620 Maintenance 48,137 64,490 50,859 66,057 38,533 28,170 Interest on West GA Hangars Loan (accrued monthly) 13,237 6,328 6,328 5,862 3,420 3.420 INCOME USED FOR OPERATING ACTIVITIES 695,557 765,175 736,909 758,275 454,326 353,913 NET INCOME FROM OPERATING ACTIVITIES - GAIN / (LOSS) 4,629 (95,975) (9,105) (91 ,683) (65,481) (29,105) OPERATING & CAPITAL - FBO OPS 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTO REVENUE Rents & Leases 25,000 12,500 10,928 Aviation Fuel 1,643.867 821,934 524,554 DLA Fuel Sales - Liability to MA (4,162) FBO Accessory Revenue (sales) 6,083 3,042 12,179 INCOME RECEIVED FROM OPERATING ACTIVITIES - - - 1,674,950 837,475 543,499 EXPENSES Personnel 180,901 90,451 74,968 Materials & Supplies 8,923 4,462 (47) Aviation Fuel Purchases 1,321,296 660,648 413,497 Services & Charges 139,451 69,726 29,740 Cost Allocation to General Fund 16,667 8.334 - Malntenance 13,541 6.771 7,173 Capital Investment Prof 51301 98,437 89,976 89,976 INCOME USED FOR OPERATING ACTIVITIES - - - 1 ,779,216 930,366 615,308 NET INCOME FROM FBO ACTIVITIES - GAIN I (LOSS) - - - (104,266) (92,891) (71 ,810) INVESTING ACTIVITIES 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD NON-OPERATING INCOME Interest on Investments 51098 7,800 4,041 4,200 2,450 1,372 Other - Unrealized Gain (Loss) on Investments - - (753) - - - CAPITAL IMPROVEMENTS EXPENSE 07039 AIP #38 Correct Runway 16 Safety Area Deficiency Phase III 391,775 - - - - 10022 AIP #39 Wildlife Hazard Assessment 33,205 - - - - 10028 Airport Fuel Farm Repair (512) - - - - 11017 Airport Security Improvements 128,693 51,095 51,078 - - 11019 Airport Stormwater Protection Plan Update 2,500 - - - - 11023 AIP #40 Pavement Rehab & Re-Marking 252,069 - - - 12002 Hangar Rehab - 4248 S School - 263,250 262,623 - m - 12011 Executive Hangar Office Addition 32,504 26,473 274,870 I 45,780 12012 AIP #41 Pavement Rehab & Re-Marking Phase II - 147,252 117,176 - - 13024 Airport Ground Service Equipment Acquisition - - - 18,025 7,950 USED FOR INVESTING ACTIVITIES 802,631 486,301 454,061 288,695 52,358 FINANCING ACTIVITIES 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD LOANS Payments on Loan Principal (accrued) 28,030 15,530 15,530 15,530 9,059 9,059 One-time Paydown on Hangar Loan 305,626 - - - GRANTS STATE / FEDERAL Due/Received from Stale Grants on Fed Projects 195,779 34,417 27,156 - - Due/Received from AIP #38 Correct RW 16 RSA Phase 111 372,186 - - - Due/Received from AIP #39 Wildlife Hazard Assessment 51,343 - Due/Received from Dept Aero - Fuel Farm Repair - - - - - Due/Recelved from Dept Aem - Airport Security Improvements - 144,000 143,816 - - Due/Recelved from AIP #40 Pavement Rehab & Re-marking 239.465 - - - Due/Received from Dept Aero - 80/20 Hangar Rehab - 210,600 210,098 - m Due/Received from AIP #41 Pavement Rehab & Re-marking Phase 11 - 105,741 104,828 - I - Due/Received from Dept Aero - 80/20 Executive Hangar Office Addition - - - 240,822 " 36,624 NET INCOME FROM FINANCING ACTIVITIES 525,118 479,228 470,368 225.292 27,565 AIRPORT CASH BALANCE 616.222 513,174 623,423 364,071 497,716 CURRENT ENCUMBRANCES (CAPITAL) MCE TASK ORDER #9 - Plans, Specs, Proj Admin, Exec Hangar Office Addition 6,031 11,713 Centerpoint Contractors Inc - Construction, Exec Hangar Office Addition 256,675 243,850 Hangar Loan Principal 201,886 192,827 APPROVED GRANTS (Not yet accrued) • CAPITAL PROJECTS Stale Grants on Federal Projects - - State Grant - Exec Hangar Office Addition 240.822 204,198 AIRPORT CASH MINUS LIABILITIES 140,300 253,524 Q -0 y O y c o m o D � m D - 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