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HomeMy WebLinkAbout2013-09-12 - Agendas - Final Director Ray Boudreaux TayeVle Chairman Bob Nickle Financial Coordinator lames Nicholson 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 p.m., Thursday, September 12, 2013 Terminal Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off all cel!phones and pagers 1. Welcome. Chairman. 2. Approval of the Airport Board Minutes of the August 8, 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. T Hangar Rent Increase. 6. Other Business. A. Items from the Public. B. Items from the Airport Board. 7. Meeting adjourned. NOTE: Next Airport Board Meeting: October 10, 2013 Strategic Planning Meeting: 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • w.vev.accessfayetteville.org/govemmentlaviabon airport_economic_development@ci.fayetteville.ar.us FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES August 8, 2013 MEMBERS PRESENT: Bob Nickle, Josh Mahony, Bill Corley, Mike Gibbs MEMBERS ABSENT: Marty Burggraf, Rick Bailey, Ken Haxel 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 #1 : Welcome. Chairman Nickle. ITEM #2: Approval of the Airport Board Minutes of the June 13, 2013 meeting. A motion to approve the minutes was made by Josh Mahony, and seconded by Bill Corley. The motion carried. ITEM #3 : Receiving of Reports. A. Director Boudreaux, Aviation Director. Overall, things were fairly slow this summer which is typical. Boudreaux reported the airport is still ahead on the operations for the year, and credited in part the Air Race Classic event. Boudreaux said he hopes football season will pick up fuel sales a bit. The FAA extended the contract tower program thru end of the fiscal year though there is not a budget yet for 2014. The tower budget is no longer part of the FAA's general fund so Boudreaux predicted that the money will be safe now that it is a separate item. Boudreaux briefly commented on both the NFlight hangar renovation and IT data center projects. He also briefly mentioned the Air Race Classic was a huge success and brought in a good amount of proceeds for the Museum. The Wildlife Hazard report is still not approved. Boudreaux said he talked to Loomacres' president and he said the changes have been made and resubmitted to the FAA. Gibbs said if we don't get action soon, we might consider alternative options. Boudreaux said we might be able to sue and get the money back but we have already paid and a lawsuit would cost us more than we would make. Boudreaux said he thinks the missing data is available; it just wasn't in the initial report. Boudreaux said regardless, we are very effective at handling the geese and other wildlife at the airport. Boudreaux said regarding the DLA, we received notice last Friday that the final piece of paperwork has been finished. The Novation agreement is complete though it doesn't mean we are getting money yet. Nicholson and Morgan Lomax (CSR) are working to straighten out and submit the payments so we can start getting the money. Boudreaux said the U of A charter season is approaching. The air stairs will be delivered before the end of August and we already have our baggage loader. Boudreaux pointed out that we recently hired former Million Air employee, Chris Kelsey. He also mentioned the schedule change which has resulted in everyone being full-time employees now (even the weekend guys). Boudreaux told the Board that we will need some help on Game Days, especially someone to drive the shuttle van back and forth to Chik-Fil-A. Boudreaux said Rick Bailey typically likes to do the driving but he is not here today so we will wait and see what he says. The AAOA conference (Boudreaux's last conference as chairman of board) is this September 15 — 17 in Eureka Springs. Boudreaux said there is not enough money to pay Board member' s fees, but everyone who would like to attend is invited. Gibbs asked a question regarding the aerobatic box. Boudreaux said it is done and it is approved — it has been used one time and it did not interfere with anybody. B. Financial Coordinator James Nicholson, Budget Report. Nicholson said operations are down which is typical for July but we are still ahead of last year about 9.5%. He predicted our year end to be ahead of operations in 2012. Regarding fuel sales, Nicholson said we are 1 .5% above last year on fuel sales. Nicholson said the military traffic has been down in terms of fuel sales and he believes the Sequester put a damper on things. However, he has heard word that the military is starting to re-engage in back and forth flights. Nicholson said we aren't quite meeting our average margin. This is mainly because we have to keep our prices within the local marketplaces prices, and almost half of our fuel sales are base customers who have negotiated pricing and fuel discounts. Boudreaux and Nicholson talked with AvFuel regarding contract fuel prices to help boost our average margin. Boudreaux said in March/April/May the average was about $0.88, but then in July we changed it and our average turned out to be $ 1 .03 . Nicholson said this means we will have to be very cost conscience in other areas pertaining to operating the FBO. Gibbs asked if Nicholson and Boudreaux are feeling good about the FBO transition at this point. Boudreaux said there have been a lot of bumps but it is going as well as we could have hoped for it to be and the airport has not lost any routine customers. Boudreaux said he is somewhat concerned about the amount of fuel traveling aircraft is buying. Our facility fees are not as much as they used to be but that was a strategy to try to attract people. Boudreaux noted that Morgan Lomax (CSR) and Lauren Treat are trying to help with airport promotions such as designing and mailing out flyers. All airports in NWA are doing similar things. Nickle said in the future, the board might consider reanalyzing the fee schedule to see if it needs to be adjusted. Nickle said we need to at least break even and attempt to a make enough money so we can replace equipment, etc in the future. Boudreaux said the most recent report shows the FBO is in the black, and we can forecast it to be in the black by the end of the year. Boudreaux mentioned there is an AOPA Safety Summit meeting ("Weather Challenges") on September 11 , 7 — 9:00 PM at Museum. Nicholson said everything is updated in the financial report thru the end of July. He discussed why he has the report organized the way it is. Nicholson said he has the FBO section separated so we can see how it is doing as a separate entity. More discussion of financial line items followed. Nicholson said we have fallen slightly below our target cash balance of $500,000 but we are always struggling to keep above that number; the FBO start up costs just hit us pretty hard. Nickle said anytime you open a new business you have to invest money into it. The airport will not have to go through this again next year. It's not an operating cost; it's just an initial investment. We need to try to be in the FBO business for more than just one year to see how we are actually doing. C. Administrative Assistant, Lauren Treat, T-Hangar Report. Reported there are two hangars available — both singles. D. Wayne Jones, McClelland Engineers, Construction Report. Wayne said the floor will go into the NFlight hangar on Monday. At that point we will start moving the radiant heating system away from over in the new office area and start the framing for the executive offices and conference room on the second floor. Wayne received a few thank you letters regarding our tie downs donation to the airport during the Air Race Classic. Boudreaux said pretty soon we will be working with Wayne to determine what kind of grant request we need to put in with the FAA. Wayne said the FAA suggested we do a design grant for the apron. E. Museum Executive Director Warren Jones, Museum Report. Warren said the museum received $8,400 from the Air Race Classic but we gave the civil air patrol a thousand of it for all of their help. We are still trying to get a shuttle bus from Dickson Street to Baum Stadium during Bikes, Blues, Barbeque and Bombers BBBQ. The museum will probably be able to use a church bus but we need a CDL driver to operate the bus. Regarding the B- 17 event, for some reason our portion of the money was cut. We made a total $800; however, we will only see $400 because the EAA gives us half. We actually spent more money on the event than we made. Warren said Russ from Flying Investments is gutting a Falcon 12. Warren said it's a beautiful airplane and the museum will be able to make it appear as if all the pieces are still there. He said he might place the aircraft in the green spot between the two museums. Warren thanked both Russ and Gerald and pointed out that this is just another example of the airport community continuously helping each other out. Warren said much of the information about the Bikes, Blues, Barbeque & Bombers! event will be promoted via websites. Almost every biker that attends the event visits the website. The Museum' s site will be linked to both the CAF and BBBBQ&B ! web pages. Nickle said he expects a lot of the bikers will ride down. Corley asked how much parking availability will be provided for the motorcyclists; Warren said probably about 300 spots out front but other spots could be created just in case. F. Marketing Committee Chairman Bill Corley, Marketing Report. No news — we have been on summer vacation! Corley said we will focus on tactics and channels in future meetings instead of branding. Gibbs offered to help. ITEM #4: Old Business. None ITEM #5: New Business. A. Airport Budget Submission Nicholson started with a summary of the budgeting process up to this point. He noted there is still some updating that the budget division has to do, so Nicholson used "close enough" numbers for those particular missing costs. Nicholson said if the economy improves then perhaps we will see some growth. The FAA' s forecast predicts piston operations to slightly decrease over the next 20 years, but they see a very small amount of growth in corporate turbo props and jets. Other than that, our hangar and terminal tenants are quite stable. Boudreaux mentioned the importance of raising rent every two years or so, and said that probably needs to happen soon. Corley said it has been a difficult past four years and Boudreaux said that is why we chose not to raise rent in the past. Nicholson discussed a few of the line items. Nicholson said he would be happy to share copies of the expense budget with anyone who wants to look at it. The biggest expenses are aviation fuel and personnel costs. Boudreaux said wants to try to get back to where we were in operations in previous. years, but it will have to be done conservatively. Gibbs said it would be interesting to see a correlation between the economy and the airport operations. ITEM #6: Other Business. A. Items from the Public. Boudreaux noted the gentlemen who attend part of the board meeting but then left early were from the VA Golden Olympics. It is a major event, with competitors coming from all over the country. They will be doing the cycle event at Drake Field sometime next year. B. Items from the Airport Board. Corley asked for an update on the flight school. Nickle said they signed a one year lease which started in May 2013 . MEETING ADJOURN AT 2:46 P.M. Jos a ahony, Secretary Date THE CITY OF FAYETTEVILLE, ARKANSAS Tay ASSchoNDNISION teF 4500 S School Ave, Ste F Fayetteville, AR 72701 ARKANSAS P (4 7 9) 718-7642 DIRECTOR'S MONTHLY REPORT AUGUST, 2013 FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD September 9, 2013 • AIRPORT ACTIVITY: August was hot and the numbers reflect that. Operations are still ahead of last year by 6.9%, but since we took over the FBO we are slightly behind each month. Hopefully the game day traffic will carry us through the end of the year. Fuel sales were dismal for the month of August. We are now 2.21 % below the same time last year. The first home game was nothing to shout about. Hopefully this weekend will be better. We had one bad experience by a pilot that flew in for the game. I have talked with him and it was a bad day all around. He took his frustration out on us and we will work hard to eliminate his frustrations for the next game coming this weekend. The game day forecast is for cooler weather and clear skies so hopefully we have a bigger turnout and all are happy when they leave. • FAA ANNOUNCES CONTRACT TOWERS TO REMAIN OPEN THROUGH FY2013 : There has been no change since last month. If nothing happens over the next few weeks, another announcement could result in the towers scheduled for closing sometime after the first of the year. There would, still be time for legal action but since the last suit, it is presumed that the FAA has conducted the required safety analysis so any suit would be less effective. Stand by for news. • CORPORATE HANGAR IMPROVEMENT PROJECT FOR NFLIGHT TECHNOLOGY: The project is coming along nicely. We have monitored the progress on a daily basis and they contractor is doing a great job. • CITY IT DEPARTMENT PROJECT: The building is complete. Many pieces of equipment have been installed including the power supply. Cooling units have been delivered and are being installed as well. We held the safety meeting for the Fiber Optic installation across the runway. Conduit will be drilled under the runway and the taxiways to carry the lines. The IT system will then have a two way feed one from the east and the other from the west. They will remain clear of the safety area during the drilling. • FAA WILDLIFE HAZARD ASSESSMENT: Roger Middleton, our FAA inspector, has received the recommended changes and is working with the head wildlife biologist to get the assessment approved. At least there has been some progress. • HANGARS FOR RENT: We are full with 5 rented for storage. There has been a lot Telecommunications Device for the Deaf TDD (479) 521 -1316 113 West Mountain - Fayetteville, AR 72701 THE CITY OF FAYETTEVILLE, ARKANSAS of movement but we have not had to notice any storage tenant for several months. • 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 : According to Defense Finance and Accounting Service (DFAS) payments are now flowing on a routine that we expected. Unfortunately, they have been sending the payments to Million Air in Houston. James is working with DFAS and Million Air to sort it all out. Military sales have not rebounded as we had hoped. FYV is listed on the web site as an authorized location for military fueling so hopefully, we will see an increase soon. Sequestration is still a concern as it limited the number and length of cross country training flights. We recently found out after receiving the first few payment reports that we must apply for the FET from the IRS as the DLA does not repay the tax that we have already paid on the delivery of the fuel and military does not pay FET. FET is $.244 per gallon so it is a big number. We have applied to the IRS for permission to file for the rebate. • U OF A CHARTER SEASON NEARS : All is ready for the first 757 charter scheduled for the end of this month. The new air stairs are very nice. The first home game did not generate the crowd we had hoped for but we were well staffed and our crew is now prepared for a larger crowd for future games. Here' s hoping the Razorbacks continue to do well and generate excitement for the rest of the season. • AAOA CONFERENCE SEPTEMBER 15-17: I will attend the annual conference September 14 thru 17 Eureka Springs. We have a strong turn out already registered. I will report on the conference next month. Respectfully Submitted, Ray M. Boudreaux, Director Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 TayeV Airport Progress Report TO: Fayetteville Executive Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: September 12, 2013 Tower rations Cumulative MONTH 2009 2010 2011 2012 2013 MONTH 2009 2010 2011 2012 2013 JAN 2,492 1932 1,917 2552 2,928 JAN 2,492 1,932 1,917 2552 2,928 FEB 2,902 2214 1,320 2,138 2,540 FEB 5394 4,146 3237 46M 5,468 MAR .2,807 2418 - 2,818 - 21161 2,889 MAR , 8201 6,564 6,055 8,651 8,357 R 2,629 2,775 2,254 2,763 2,687 APR 10,830 9,339 8309 9,614 11,044 MAY 2,722 3015 2,627 3180 3090 MAY 13,552 12,354 10936 12,794 14,134 JUN 2,876 2,531 2,859 3,195 4,059 JUN 16,428 14,865 13,795 15,989 18,193 JUL 3,100 2,895 2,758 3,050 1 2,648 JUL 19,528 17780 18553 19,039 20,841 AUG 2,868 2513 2,878 2,951 2,888 AUG 22,398 20,293 19,229 21,990 •23,509 SEP 315n 2,694 3,503 4 684 SEP 25,9731 22,977 22,732 28854 OCT 2,677 3,125 2,998 3,320 OCT 28,650 26,102 25,730 30,174 NOV 2586 1884 2,379 3392 NOV 31236 28068 28109 33568 DEC 1,842 1,841 2,184 21546 DEC 33,018 29,907 30,273 36,112 jftnthlyft 1 2,7671 2 492 1 2,523 1 30009 1 2,939 jAnnual C -3.64% -9.59%1 1.22% 1919% 8.91% Estimated YE Total: 37,173 Operations - 12 Month Comparison -2012113 - 2011/12 2010111 5,500 5,000 4,500 y 4,000 i 3,500 O 3.000 t g d 2.500 Z x000 1,500 - 1,000 SEP ocr NOV DEC AAN FEB MOR APR MAY .AIN .0.A. AUG Month OPERATIONS Montt) Average Annual Comparison G TWELVE MONM AVSIAGE 5,000 4,500 4.091 4,297 4.000 3,54 3.500 2.918 • 2.838 3,00053 0o 2.404 27 z5 g z0oo 6 1,500 i 1.000 500 2003-00 2004-05 2005-06 2006-07 2007-08 200a-09 2009-10 2010-11 x011-12 zolz-13 Period: Sep - Aug r 11 FBO Fuel Sales Cumulative MONTH 2009 2010 2011 2012 2013 MONTH 2009 2010 2011 2012 2013 JAN 36,062 35,528 35,936 27,865 29,621 JAN 36,062 35,528 35,936 27,865 29,621 FEB 43,497 35,466 20,909 29,824 32,602 FEB 79,559 70,994 56,845 57,689 62,223 MAR 46608 41,809 37,333 28,827 35,761 MAR 126,167 112,803 94,178 86,516 97,984 APR 31705 30,763 27,611 27,085 28,155 APR 157872 143,566 121,789 1131601 126,139 MAY 33136 31,018 26208 29481 25,135 MAY 191008 174584 147,995 143,082 151274 JUN 28,218 27,216 31,677 32,961 30,918 JUN 219,226 201,800 179,672 176,043 182,192 JUL 26,021 28,828 23692 28,088 24,981 JUL 245247 228428 203564 104,111 207,153 AUG 25,018 1 25,011 23,5851 31,835 23,568 AUG 270,2651 253,439 W,491 235,9461 230,721 SEP 39,025 39,845 31,879 44,937 SEP 309290 293 84 259,028 t3131420 83 OCT 44,578 48,581 29,678 320537 OCT 353,868 341,865 288,704 NOV 30 489 33,718 32603 28,744 NOV 384337 375,583 321307 64 DEC 28,732 24,470 23,103 25,157 DEC 413,069 400,053 344,410 367,321 IMonthtyAvg 1 34,4221 33,3381 28,701 1 30,6101 28,640 Ifttlial Chg 1 -13.13% -3.15% -13.91%1 6.65% -211% Estimated YE Total: 356,317 2013 Cumulative Arg Fuel Sales by Percent of Type Fuel Sales by Month 7013 5D nA.ET.ea% assn SF,Er an Q 30 d 2D 10 ne8MNf 1001, BASFD.Er,263% a15tDtonL e➢A s6% a AN FEB VAR urs ANY AN dA AUG a& OCf MIY (1E Fed&Ia•12aoeb f�p31110e -ala? -31lun 31011 FDa AAIB ambAINWAMMOCompulm 0%eVEAO1MAYBOIE s 5w j 5DQ817 to 10 e31Aa oaa olatto e a `� sopa a � a I � oCf IOe AN fa YIR AIR w a a AIG 31AG 31M6 317101 a%W aeA a0m 2010 a1011 alto =13 wo An Fuel Sales - Avera a Margin Tracking AUG 2013 DATA JET A 100 LL 100LL SS MOGAS TOT ALL AVG COST/GAL 4. 1597 5.4201 5.3263 4. 1574 4.4759 GAL SOLD 17184 4818 1183 383 23568 GROSS REV 90917 30095 7213 1790 130015 AVG GRS REV/GAL 5.2908 6.2462 6.0980 4.6755 5.5166 AVG MARGIN/GAL 1 . 1311 0.8261 0.7717 0.5181 1 .0408 TARGET MRGN/GAL 1 .50 1 .25 0.75 0.50 1 .4459 DIFFERENCE 0.3689 0.4239 0.0217 0.0181 0.4051 VARIANCE 24.59% 33.91 % 2.89% 3.61 % 28.02% Local Fuel Prices: Fuel prices within 50 miles of FYV as of 09/11 /13 Ident FBO Name Jet FS 1001.1. FS 10OLL SS 91 MoGas A $ Jet A$ 1o0t A $ tooss TOH City of Tahlequah (both selfserv) 4.99 5.40 NC J0.09L SLG City of Siloam Springs 5.41 5.83 5.33 0.03 0.05 0.03 VBT SummitAviatbon 5.95 6.15 5.95 NC NC NC ASG Pinnacle Air Services 5.95 6.15 5.65 NC NC NC XNA Regional Jet Center 5.95 6.90 NC NC ROG Beaver Lake Aviabon 5.98 6.32 NC NC FSM TAC Air 6.00 6.58 6.05 0.10 0.21 ) (0.19)_ FYV City of Fayetteville 6.22 6.85 6.00 430 1 0.06 0.05 0.10 Fuel Prices: National 9/11/13 Source: GlobalAir.com Aviation Fuel Ful Current US Fuel Prices 51'I 811 Current Fuel Prices & Averages by Region Nuillrsusl khmnlam Nc frd Gr al I.akes 9M . 8 & I is Fasloin ��A'i7D BOISE GuWrW S 3 . 1 0 cabs :03 A Dal %%slum 1':urkc Bales SOWMtUsI A1M! tiaulhuin S ° 3 Bliss ©� Alaska SI B�IflD D Tayeevl le ARKANSAS FAYETTEVILLE EXECUTIVE AIRPORT OPERATING SUMMARY MONTH ENDING 8/31/2013 AIRPORT BOARD OPERATING ACTIVITIES - ADMIN & MAINT 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD REVENUE Rents 8 Leases 527,962 511,800 536.243 508,492 338.995 328,332 Aviation Fuel 114,865 119.500 157,525 129,600 86,400 18,091 Miscellaneous 11,869 11,900 8,586 2,900 1,933 7,447 Operational Transfers - FEMA Reimbursement 15,857 - - - - - NON-OPERATING INCOME Sales Tax Revenue 29,733 26,000 25,449 25,600 17,067 14,172 Non-Op Miscellaneous (100) - - - - 1,416 INCOME RECEIVED FROM OPERATING ACTIVITIES 700,186 669,200 727,803 666,592 444,395 369,458 EXPENSES Personnel 331 ,465 341,673 319,057 336,276 233,984 209,872 Materials 8 Supplies 12,990 22,545 21,315 22,155 14,770 8,561 Aviation Fuel Purchases 81,584 90,328 105,924 93,888 62,592 25,424 Services 8 Charges 200,230 231,896 225,510 226,122 150,748 139,341 Cost Allocation to General Fund 7,915 7,915 7,915 7,915 5,277 5,279 Maintenance 48,137 64,490 50,859 66,057 44,038 38,040 Interest on West GA Hangars Loan (accrued monthly) 13,237 6,328 6,328 5,862 3,908 3,908 INCOME USED FOR OPERATING ACTIVITIES 695,557 765,175 736,909 758,275 515,317 430,425 NET INCOME FROM OPERATING ACTIVITIES - GAIN I (LOSS) 4,629 (95,975) (9,105) (91,683) (70,922) (60,967) OPERATING B CAPITAL - FBO OPS 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD REVENUE Rents 8 Leases 25,000 15.278 12.913 Aviation Fuel 1,643,867 1,004,585 668,389 DLA Fuel Sales - Liability to MA (6,780) FBO Accessory Revenue (sales) 6,083 3,717 13,344 INCOME RECEIVED FROM OPERATING ACTIVITIES - - - 1,674,950 1,023,581 687,865 EXPENSES Personnel 180,901 110,551 88,538 Materials d Supplies 8,923 5,453 5,224 Aviation Fuel Purchases 1,321 ,296 807,459 477,235 Services 8 Charges 139,451 85,220 34,151 Cost Allocation to General Fund 16,667 10,185 - Maintenance 13,541 8,275 7,122 Capital Investment Prot 51301 (FBO Startup costs) 98,437 89,976 89,976 INCOME USED FOR OPERATING ACTIVITIES - - - 1,779,216 1 ,117,119 702,247 NET INCOME FROM FBO ACTIVITIES - GAIN / (LOSS) - - - (104,266) (93,538) (14,382) INVESTING ACTIVITIES 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD NON-OPERATING INCOME Interest on Investments 5,098 7,800 4,041 4,200 2,800 1,492 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 939 Wildlife Hazard Assessment 33,205 - - - - 10028 Airport Fuel Farm Repair (512) - - - R - m 11017 Airport Security Improvements 128,693 51,095 51 ,078 - 3 - 11019 Airport Stormwater Protection Plan Update 2,500 - - - - 11023 AIP 940 Pavement Rehab 8 Re-Marking 252,069 - - 12002 Hangar Rehab - 4248 S School - 263,250 262,623 - to - 12011 Executive Hangar Office Addition 32,504 26,473 274,870 x 117,205 12012 AIP 941 Pavement Rehab & Re-Marking Phase It - 147,252 117,176 - - 13024 Airport Ground Service Equipment Acquisition - - - 18,025 17,450 USED FOR INVESTING ACTIVITIES 802,631 486,301 454,061 288,695 133,163 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/Recelved from State Grants on Fed Projects 195,779 34,417 27,156 - - Due/Received from AIP 938 Correct RW 16 RSA Phase III 372,186 - - - _ - Due/Received from AIP 939 Wildlife Hazard Assessment 51,343 - m Due/Recelved from Dept Aero - Fuel Farm Repair - - - Due/Received from Dept Aero - Airport Security Improvements - 144,000 143,816 - - Due/Received from AIP #40 Pavement Rehab 8 Re-marking 239,465 - - Due/Recelved from Dept Aero - 80/20 Hangar Rehab - 210,600 210,098 Due/Received from AIP #41 Pavement Rehab 8 Re-marking Phase II - 105,741 104,828 - I - Due/Received from Dept Aero - 80/20 Executive Hangar Office Addition - - - 240,822 93,764 NET INCOME FROM FINANCING ACTIVITIES 525,118 479,228 470,368 225,292 84,705 AIRPORT CASH BALANCE 616,222 513,174 623,423 364,071 499,616 CURRENT ENCUMBRANCES (CAPITAL) MICE TASK ORDER 99 - Plans, Specs, Proj Admin, Exec Hangar Office Addition 6,031 7,360 Centerpoint Contractors Inc - Construction, Exec Hangar Office Addition 256,675 176,778 Hangar Loan Principal 201,886 192,827 APPROVED GRANTS (Not yet accrued) - CAPITAL PROJECTS State Grants on Federal Projects - State Grant - Exec Hangar Office Addition 240,822 147,058 AIRPORT CASH MINUS LIABILITIES 140,300 269,709 0 c m t 5 a L N c N E r N am C N N 9 N N l0 N N 3 d m N N N N N L 033 3 3 °' D N Q Q Q Q m D W C C c c c c c C d N N N N N N 99 N o m m m m m m m 6 U in in min in fn in0 0 o n 0 o v 0 o vi � � N A � i O OI O N f7 Q m O tD ~ U) f�00NV7 000i 00 N a N a " O m r tOD N O V N N O C6 O r M OCLN U d N O a C N w F o W (J Z y Ornm jLb 0O Nim > Z � F6IiLL U = RIm J D D C > U Z wx - 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EZ rW E yF LLxxaCm00 O_ ~ WLNON m Q W N DL C Qy mN L Na. ozoN U LL W Q Z K U' U U Z 0 U' Tay e 81 T le THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS MEMO TO THE AIRPORT BOARD TO: Bob Nickle, Chairman Airport Board Airport Board Members FROM : Ray M. Boudreaux, Director, iation DATE : September 11 , 2013 SUBJECT: T Hangar Rent Adjustment DISCUSSION: Every two years we consider raising the rent on the T Hangars. The basis for the increase is the CPI by policy set by the Airport Board. The formula raises the rent by the increase in inflation plus one percent ( 1%). The 1% is added in order to capture some of the increase that occurred over the past 24 months. The Board last increased the T Hangar rent for 2009 nominally by $10 for small and $ 15 for large hangars. The formula computation at the time resulted in an increase of $25 small and $30 for the large but the Board recognizing the difficult economy reduced the increase. The history of rent increases: 1987 1993 2003 2005 2007 2009 A ( 1392 SF/<48): $ 135.00 $ 141.00 $ 148.05 $155.00 $175.00 $ 190.00( 1.64/SF) E—H ( 1440 SF/48): $ 141.00 $ 148.05 $160.00 $180.00 $195.00( 1.63/SF) B—D ( 1050 SF/42): $ 110.00 $115.00 $ 120.75 $127.00 $150.00 $160.00( 1.83/SF) CPI information for All Urban Consumers using the September numbers are: 2007 208.490 2009 215.969 2011 226.889 2013 233.596 (July) Formula: Rent ( 1 + Current Index-Base Index ) + .01 (Current Rent) = New Rent Base Index Using 2009 as the base index the new rent would be: T Hangar A $207.41 T Hangar E-H $212.87 R Hangar B-D $ 174.66 THE CITY OF FAYETTEVILLE, ARKANSAS RECOMMENDATION : Since it has been so long since we raised the rent, it is probably time to increase it. A modest increase would be appropriate. Recommend we round to the nearest $5. $205, $210, and $ 175 effective January I . Comparables: These rates are the same as presented in 2011 . They have not increased the rent. Rogers: T Hangars privately owned Sunscreens rent for $70.00/month Springdale: 131 units full <42 wide $ 131 .00/month (manual doors) 48 wide $ 193.00/month Square Hangar $255.00/month (1920SF) Ft. Smith: 28 total 14 empty 44 wide $190.00/month 48 wide $220.00/month Page 1 of 5 Ray Boudreaux - Airport Alert: AAAE and ACI-NA Urge Lawmakers to Avoid Disruptions to Aviation System as Budget Debates Continue From : Joel Bacon <joel.bacon@aaae.org> To: <rboudreaux@ci.fayetteville.ar.us> Date: 9/10/2013 2 :46 PM Subject: Airport Alert: AAAE and ACI-NA Urge Lawmakers to Avoid Disruptions to Aviation System as Budget Debates Continue ] A ION OP AIRPORT I'. XEC.UTIVES b a. l + � . I t AA A E D e I i V e r S :,, .; E x p e i e n c e LA�. . . . . . . . . . . . . . _ _ . . . . . . . AIRPORT LEGISLATrvF AI.1"IANCF AIRPORT ALERT AAAE and ACI-NA Urge Lawmakers to Avoid Disruptions to Aviation System as Budget Debates Continue September 10, 2013 AAAE and ACI-NA today urged Congressional leaders to keep AIP funding intact and to increase the PFC cap as lawmakers prepare to consider a short- term continuing resolution to avert a government shutdown at the end of the month. With only a few weeks remaining in the current fiscal year (FY 2013), one of the first orders of business - beyond the consideration of potential military action in Syria - will be the approval of a continuing resolution (CR) to keep the government operating beyond October 1 . While there is general agreement that action should be taken to keep the federal government operating as efforts continue to reach a final agreement on FY 2014 funding, there are disagreements between the two parties on how the CR should be structured in terms of spending levels, length of time, etc. Additionally, a number of Republicans are advocating to "defund" the President's health care reform law and have threatened to vote against any CR that doesn't take steps in that direction. Those issues will likely be debated thoroughly over the next few weeks. At this point, the expectation is that Congress will approve a CR that provides funding for the first few weeks to file:///C:/Users/rboudreaux/AppData/Local[Femp/XPgrpwise/522F30B9FAYETTE V I LLE. .. 9/10/2013 Page 2 of 5 months of FY 2014. Given the uncertainty regarding FAA funding under the terms of a CR and beyond into FY 2014, FAA leaders are already warning (see Airport Alert) of a potential return of employee furloughs, deferred controller hiring, reductions in system efficiency and the shrinkage of services - including a phase out of funding for contract towers, flight service stations, and contract weather observers - should budget uncertainty and sequestration continue. AAAE and ACI-NA sent a joint letter to Congress today urging lawmakers to take steps to avoid disruptions to the aviation system and warning lawmakers against the further use of Airport Improvement Program funds to pay for FAA operations - as was the case earlier this year with the diversion of more than $250 million in AIP funding. Thejoint letter, which can be viewed here, also calls for Congress to increase or eliminate the cap on PFCs as a way of giving airports the local self-help they need in the face of continued federal budget uncertainty. Further complicating the federal budget picture is the fact that the government is expected to reach the debt limit or the current cap on federal borrowing in mid-October. So, in addition to having to tackle short-term budget issues, a divided Washington will likely seek to address a host of complicated and divisive longer-term budget questions concerning taxes and entitlements. The outcome of those debates will likely influence whether or not sequestration remains in place or is replaced by other budget cuts or federal revenue raisers. At this point, it is difficult to see how any long-term deal emerges, but hope springs eternal. The bottom line is that we are in for a very bumpy ride on the budget front here over the next few months. The outcome of ongoing debates will likely have a significant impact on funding for FAA and for other key agencies, including TSA and CBP. Stay tuned for further updates and calls to action. For further information, contact Joel Bacon at 703-575-2478. file:///C:/Users/rboudreaux/AppData/Local/Temp/XPgrpwise/522F30B9FAYETTE V I LLE... 9/10/2013