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HomeMy WebLinkAbout2013-10-10 - Agendas - Final • Director Ray Boudreaux aye evl a Chairman Bob Nickle Financial Coordinator James Nicholson naKansas 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. October 10, 2013 Terminal Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off al! cell phones and pagers 1. Welcome. Chairman. 2. Approval of the Airport Board Minutes of the September 12, 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. A. T Hangar Rent Increase. 5. New Business. 6. Other Business. A. Items from the Public. B. Items from the Airport Board. 7. Meeting adjourned. NOTE: Next Airport Board Meeting: November 14, 2013 Strategic Planning Meeting: October 28, 2013 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 , 479.718.7646 FAX • www.accessfayetteville.orgtgovemmentlaviafion . . .. . . airport_economic_development@ci.fayetteville.ar.us FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES September 12, 2013 MEMBERS PRESENT: Bob Nickle, Josh Mahony, Bill Corley, Mike Gibbs, Ken Haxel, Marty Burggraf MEMBERS ABSENT: Rick Bailey OTHERS PRESENT: Rick McKinney-tenant; Jeffry Gates-Arkansas A&M Museum, Wayne Jones-MCE; Joel Walsh-NWA Times; Warren Jones-Arkansas A&M Museum; James Nicholson-Financial Coordinator; Lauren Treat-Administrative Assistant; Mike Bowman-Tower; Ben Pollock-The City Wire; Pete Mastroianni-Million Air; Don Marr- City of Fayetteville; Greg Carter-tenant 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 Mike Gibbs, and seconded by Marty Burggraf. The motion carried. ITEM #3: Receiving of Reports. A. Director Boudreaux, Aviation Director. August was unusually hot and wet, and not the greatest month in operations or fuel. The cut in military flights after the sequester hit has affected operations numbers. Fuel sales were down in August by about 8,000 gallons and some base customers did not buy as much fuel as in the past. Boudreaux said he is unsure of the exact cause of the lower fuel sales this month, but operations are still ahead by 7 percent. Ken Haxel (University of Arkansas' pilot) said he went to Kansas City last Monday and bought gas for $3 .58/gallon + tax = $4.07. Haxel said he also filled up recently in Dallas at Love Field. Boudreaux asked the Board to look at the fuel costs sheet in the packet, and admitted one reason for our lower fuel sales is our higher price. He discussed one customer's complaint about the Game Day shuttle not getting close enough to the stadium. Boudreaux had the drop off point changed to the Union. He reported no change regarding the contract towers. At the end of this month, we will be at FY2014 and we still do not know exactly what will happen. All of construction projects at the airport are going well and Boudreaux said he is close to a resolution with Loomacres / FAA for the Wildlife Hazard Assessment. Boudreaux said the DLA contract is finally squared away. Unfortunately, the DLA had still been paying Million Air but we are now in the process of getting that situation rectified. B. Financial Coordinator James Nicholson, Budget Report. Reported the airport is still ahead of last year with numbers not too far off previous years' operations and fuel sales for the month of August. Nicholson said his end of year estimate is now a little less than he initially predicted (about 4,000 gallons less). All in all, Nicholson said the airport is still making it by okay. Regarding FBO fuel sales, the variance on the margin is about a third less than what was planned for budget-wise. He said the various types of fuel sales (contract fuel and military fuel) are dragging down our margin. Boudreaux said last month the contract fuel margin was raised by 10 cents, so it has improved. However, the market pressure is to have a low fuel price for both base and itinerant customers. Nicholson said we are trying to find our sweet spot, but it is not going to lie where our original target margin was. Our fuel prices are a little high locally, but still relatively average for the region. Nicholson mentioned even though we had disgruntled attendee on game day, many people seemed to be pleased with how it went. The team worked well together to ensure everything went smoothly. Nicholson said the airport will eventually get the DLA money. Even though the DLA is the one who made the mistake, the process of taking the money back could take a very long time. Boudreaux said Million Air is cooperating well and he does not have any concern right now. He said he expects we will receive the money directly from Million Air in the near future. Nicholson has filed a request with DFAS to investigate why our payments are going to Million Air. Nicholson said the airport is still trying to stay at the $500,000 cash mark. The hangar project will bring that account down a bit, but it should be made up with FBO sales. Boudreaux noted that the revenue/expense statement minus the start up cost shows that the FBO is doing okay. C. Administrative Assistant, Lauren Treat, T-Hangar Report. Reported all hangars are full with five rented for storage. Mentioned the handful of new tenants the airport has gained over the last month. Boudreaux said he believes within a year we might be able to get back to having all hangars full with aircraft, though the aircraft inventory in NWA is lower than it was in the past. D. Wayne Jones, McClelland Engineers, Construction Report. Wayne said NFlight hangar project is moving along well; the process of completing the floors is underway and most of the electrical conduit is in. They intend to insulate walls and prepare for sheet rocking within the next couple of weeks. Boudreaux said Nflight is prepared to pay their rent as of the first of the year. Boudreaux asked Wayne if there anything he needs to get started on for the apron project for next year. Wayne said we need to ensure the FAA program manager is on board for a design grant and how much that grant amount will be. He said work/repair of the apron will not be cheap. Corley mentioned a bump where the seam of the concrete ends and the asphalt begins. Wayne said the expansion/contraction of the concrete asphalt just keeps lifting it back up. Boudreaux said he will have a couple guys from Transportation come over with the milling machine and patch up the holes. E. Museum Executive Director Warren Jones, Museum Report. Warren said the AOPA meeting was last night at the Museum and there were about 150 people in attendance. Warren said he and some of the museum volunteers have been flying the Stinson around to other cities and giving rides, but they will no longer go anywhere further than 200 miles away due to expensive fuel prices. Warren said Bikes, Blues, Barbeque, & Bombers is coming together. The festival will be a much larger affair than it has in the past because of the bombers. He said there will be a fly-by over Dickson St. which should attract a lot of attention. F. Marketing Committee Chairman Bill Corley, Marketing Report. Corley said he has done some research on his own in advance of reconnecting the marketing team. He said the team will take a more tactical approach this time. The City disagreed with our target audience/segmentation (which was jet traffic) and they want the FBO to be all things to all people. ITEM #4 : Old Business. No old business was on the agenda, but Nickle asked Pete Mastroianni (former GM of Million Air) if he had any comments regarding military traffic. Mastroianni said students get to choose the route for their cross countries. But everyone is limited on the out and backs. Boudreaux said his point of contact for the C130s told him that a lot of students simply do not have the opportunity to fly this far. Five hour trips have been cut to three; three hour trips have been cut to two; etc. ITEM #5: New Business. A. T Hangar Rent Increase It has been four years since there has been any increase in rent rates. In the past, rent was raised every two years with the change of CPI + 1 %. In 2009, the Board reviewed the figures and it was agreed that the rent would not be raised due to the recession. Two years later, it was agreed upon again that the rent would not be increased due to the economic situation. Nickle said operating costs have not gone down and the airport now has the FBO to run. Boudreaux said if there is any increase, it would be modest. He also pointed out that none of the surrounding airports have changed their rates in recent years. Gibbs said as long there are hangars without aircraft (five for storage right now), he does not see a reason to increase rent cost. Corley said if hangar rates are raised, the pilots might go away and then the amount of storage hangars will increase. Mahony said he does not have a problem with raising the price somewhat, but he does understand the point Gibbs made. Boudreaux said the administration does not necessarily have a recommendation and he certainly does not want to run anyone off the airport. Corley asked if we are looking to raise rent in order to offset losses by the FBO. Nickle said no — the rent increase would be to help out the airport in general. For example, the airport needs extra money to repair equipment when it breaks. Boudreaux discussed how he first raised the rent when he began working at Drake Field years ago. He said the modest increase helped out a lot. Boudreaux said it was at that point that the Board enacted a proposition to match inflation which included raising rent with the formula. Rick McKinney (T Hangar tenant) said the Board should consider raising the rent cost for storage tenants since they do not buy fuel like the aircraft owners. Burggraf agreed with him. McKinney also pointed out that there are no long term loyalty benefits at Drake Field. He has rented a hangar here for 20 years and he does not receive any kind of discount. McKinney said the highest fuel prices he pays are in Fayetteville. Additionally, he said if the Board raises the rent, then he will raise some maintenance issues with his hangar. Gibbs asked if there is any reason why the airport could not charge two different prices (one price for storage, one for tenants with aircraft). Boudreaux said the whole reason we even started the storage hangars is because we had an alarming rate of hangars vacated and they helped the airport generate revenue. Nickle said the Board might consider an increase on all the hangars — however, if the hangar tenant has an aircraft and buys gas, they ,jillMreceive a rebate. Nickle encouraged East Side tenants to please contact a BoardAand share their thoughts on the matter. Feedback will be discussed it at the next meeting. ITEM #6: Other Business. A. Items from the Public. McKinney said the Board should address the issue of gas prices at self serve. Boudreaux said our fuel cost at the tank is $4.46. That does not include sales tax or a flowage fee (additional 70 cents). The state local tax is then added. The airport is earning very little (besides the 10 cents maintenance up-cost). Boudreaux said he will follow up with the fuel cost subject; he does not want to be the highest price in our region. B. Items from the Airport Board. Nickle encouraged the Board members to read Boudreaux's business forecast. Gibbs asked about the tenants on the delinquent rent list. Boudreaux said he would rather give those tenants time to pay the airport directly rather than involve Collections since that would result in the airport only receiving half of the collected payments. Corley asked the Board if anything would prevent the airport from selling advertising space in the terminal. Boudreaux said it has been done in the past. Corley said this is something the Marketing Committee will discuss at their next meeting. MEETIJO ED AT 2:56 P.M. b2 3 Josh ahony, Secretary, Date THE CITY OF FAYETTEVILLE, ARKANSAS T, erel AVIATION DIVISION y4500 5 School Ave, Ste F Fayetteville, AR R]Ol AAKli Y (4]9) 11&]602 QUARTERLY REPORT 3rd QUARTER 2013 FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD October 4, 2013 • CONTRACT TOWER PROGRAM UPDATE: The government shutdown due to the bickering between the two political parties did not affect the funding for Air Traffic Control Towers thanks to an agreement earlier to keep safety essential services intact. There is still no guarantee that the tower at Drake will remain at its current funding level as the Sequester Law requires cuts across the board and the FAA budget for all Towers will probably receive a cut in 2014. How the FAA will handle the cut is not known. We expect that it will reduce the funding by the rate required in the law and then individual airports will have to make up the difference. The Law passed last year would limit the local share to 20% of the contract cost. It is unknown whether or not we could reduce hours to achieve our reduction or if it will require the cost share to come in the form of cash for the same hours. Stand by for news. • MILLION AIR DLA CONTRACT TRANSFER: Novation contract has been executed and the DLA has accepted the transfer documents. Payments are made by DFAS (Defense Financial Accounting Service) and there are still glitches in the system. We have completed all of the paperwork and received acknowledgment that all is well, payments are still being sent to Million Air Houston. We have not received any payments from DFAS and Million Air has yet to forward any of the money they have received from DFAS. With the government shutdown, we can expect for the situation to continue for the foreseeable future. • AIRPORT ACTIVITY: September was a good month, although not quite as good as last year. Texas A&M game day was very busy but the weather kept the traffic numbers average for a game day. We expected more! Fuel sales were strong and the Texas A & M game day traffic consumed all the fuel on hand both Jet and AVGAS. Everyone was served but it was close. We will increase our game day expectations and have more on hand in the future. Operations 3.5% ahead of last year; Sales 2.6% below last year. James has analyzed all sales and computed the average gross margin for all sales to be $ 1 . 131 per gallon sold. • ARKANSAS AERONAUTICS COMMISSION GRANT FOR NFLIGHT TECHNOLOGY HANGAR MODIFICATIONS: There has been very little activity for the last several weeks. MCE is looking into the lack of progress. Scheduled completion date is November ln. • FAA WILDLIFE HAZARD ASSESSMENT: Changes have finally been made by Loomacres and are under review by our Certification Inspector. The Chief Biologist from Loomacres cleared the changes with the Head FAA Biologist in DC before submitting the changes to our inspector for review. We expect final approval any day, finally. Once the WHA is approved, we expect the Inspector to approve our draft WHP we gave him in May. • T HANGARS FOR.RENT: Our hangars are full--4 for storage. • ARKANSAS AIR AND MILITARY MUSEUM: The BBBBQ and Bombers event was a huge success for the CAF and for the museum. Attendance was great and the Museum made more than $ 12,000.00 for the three days. The CAF has confirmed they will be back for BBBBQ and Bombers next year. • CITY INFORMATION TECHNOLOGY MOVE TO THE AIRPORT: The Data Storage Room is complete and the IT staff is moving the equipment in. The fiber optic line conduit bore under the runway is complete and went very smoothly so the fiber loop is complete to the Terminal Building. • U of A CHARTER: American Airlines Charter Boeing 757 went very well and all equipment performed as advertised. All hands were on duty to insure success, including the Admin staff, to help load bags and service the aircraft to get them out on time. The second 757 charter is due on October 4`h and will return on the 5`t'. The Texas A & M fans charter operated out of Drake with a MD-83 aircraft. They landed on Friday and left on Sunday after the game. Again all hands performed well and the aircraft came and went on time every time. The aircraft left early Saturday for another charter and returned Sunday to take the A & M fans back to College Station. • ARKANSAS AIRPORT OPERATORS ASSOCIATION CONFERENCE PLANNED: The 2013 Conference was well attended and I completed my term as President of the organization. I will remain on the board as the Past President for two years. • APRON REHAB PROJECT FOR 2014: I spoke with Paul Burns about next years design only project. We are amassing entitlement funds to get the Apron repaired/rebuilt in the 2015 AIP funding cycle. He encouraged us to apply for a design only grant for the project and confirmed that it will be approved in the next AIP funding cycle next summer. When we complete the design, we will be ready to award construction early in 2015. • STAFF CHANGES: Morgan Lomax, our Customer Service Representative has resigned her position with the City to concentrate on her studies. We are in the process of interviewing candidates for the job and hope to have someone on board by the end of October. Morgan has agreed to stay long enough to train the new hire. We hired Chris Kelsey to replace the two employees that resigned last quarter. Chris is a former Million Air employee so knows the ropes. We hired Chris full time and replaced both of the part time positions with one full time employee. Michael Berndt was upgraded to full time and is working out fine. We are fully staffed on the line. Dennis Singleton is out for several months due to health issues. We will ask the Administration to allow us to convert the remaining part time CSR to a Maintenance Level II position for the maintenance staff. If approved, we will hire a Maintenance II worker to help Greg in the maintenance of our airport. Currently, Greg is overwhelmed with the workload. • AVFUEL CREDIT CARD DISCOUNT: AVFUEL offers a discount with their AVFUEL credit card. This works with our self-service fueling station. We encourage our tenants to get an AVFUEL card so that they can get the discount. Respectfully Submitted, (aZ Ray M. Boudreaux, Dire for lillittme ARKANS Airport : s TO. O1 i Ezecuave Airport Board R. DAT11- October 10, 2013 /. 1 ive _III ' 1 B 1��rL 211112 2013 1', 11 ' M O X�11 .•7 21112 � JAN 1= 1$17 21552 2J0 AN 20 IM FEB 2= 2,2U 1= 2138 2,540 FEB 513% 41HO 347 40 5,468 MAR 1207 2,418 2AIB 2161 2M MAR AI 6= 6A51 8;B7 a !� APR 2t620 2,775 2254 21763 2f687 APR 10,MD QX9 91614 11ro" MAY 2,722 3,015 iq 3,180 3.090 ® 1M" 12t794 t4,134 2M 2531 26M 3,195 4= JUN I MO 14M 13,795 15�w 18,110 JUL 1111 2�®�S7 .+' 3050 ©®�'"" AL / YR: . 17,7m FFIs=q' 1909 2D,841 frr SISEPTW 22 2142 �'® .� r — TV m 2: 1 . ZB1109 33 DEC 1 1,8421 1,8 IDEG 33,0781 29,9071 30,271w 1021 215= Wa04ft 1® 2,422 l = 1 3M ' 3= ra Yii. j -0.%%l 122% 1929%1 Estimated YE Total: Operations - 12 Month Comparlson 0 3,90D -� zwo IAW ocr tm CEC AAA FEB &M APR fifty ASA AL ALG SEP OPERATIOW e 4,SD0 4,322 4.00 WIN 3.90D .472 ■ ... ■ ■ Soi. : ■ 1 �lllli � IIIIH II I !I JI 11 �.It li � AIII4 11 1 11 AI 11 I®' �®' !•�i:1'Y7.'LL� 4: AI : 1'1 .®t ' : 1 'F Noma ���4��1/ ����J•1!t[:�'� 1'.7:'�Sill'L �,[�!���^��^� �ta1Ji{J SS'a:Y� W � F®" '�1Y1��S/!^J" :• [t' ,� L^.9.aL'/ FII MOMMOf: 1W/J^,.]� m MEME MOME �l ypy� liL1��. 77 MEME (7 ®' 1 ®— �i�1[CA�[i'11 ' 111. MME= ®'^^j1��—qq uvnJll=6 vI F RTI J: 1 ll : 1 11 C- 'nn. !111 �iCmalfi£L'iit'tisai'li�YJ 1 1 1 1 IIr t t ItO4. L: 1 ' 0 OR MEN S II " � ■ ■ 0MMI ■ . ■ 1 1 vvfflffyilu- ffmrelm ® 1 • 1 1 1 . 1 � � ® oonrffi� 1 1 ��� 1 : 1 1 1 1 1 . 1 1 1 or{'aiYrJ1 Local Fuel Prices: Fuel prices within 50 miles of FYV as of 10/9/13 Nerd FBO Name MFS IIWLL FS tOOLL SS 91 MoGas A $ Jet AS AS f3 m TOH Gty of Tat equah (both seffsen 4.99 540 NC NC SLG Gty a1 Siloam Spncn s 541 5.65 5.15 NC 0.18 0� FSM TAC Air 5.85 6.58 6.05 0.15} NC NC VBT Summit Aviation 5.90 6.15 5.95 0.05) NC NC ASG Pinnacle Air Services 5.90 6.15 5.60 0.05 NC 0.05) ROG Beaver Lake Aviation 5.91 6.32 0.07) NC XNA Regional Jet Center 5.95 6.90 NC NC FW City of FayettkIle 6.18 6.53 5.70 4.70 0:04 (032) 030 Fuel Prices: National 10/8113 Source: GlobalAir.com Aviation Fuel Current US Fuel Prices I`I-lri9 Current Fuel Prices & Averages by Region tFnRvanll4iurdam Tisa F�g47nA $rtdlak� G ��, 9 :3 tt C Y ;I_ :I1- =� !- ar,enl sff aL 7 'Iwnl zcac ,ijfUhl: Btadienn arc .ttlheeml n e 1 Aka&La Vie , r. Q TayetO S FAYETTEVILLE EXECUTIVE AIRPORT OPERATING SUMMARY MONTH ENDING 9/30/2013 AIRPORT BOARD OPERATING ACTIVITIES - ADMIN d MAINT 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD REVENUE Rents & Leases 527,962 511,800 536,243 508,492 381,369 370.717 Aviation Fuel 114,865 119,500 157,525 129,600 97,200 18,091 Mlscellaneous 11,869 11,900 8,586 2,900 2,175 7,447 Operational Transfers - FEMA Reimbursement 15,857 - - - - - NON-OPERATING INCOME Sales Tex Revenue 29,733 26,000 25,449 25,600 19,200 15,920 Non-Op Miscellaneous (100) - - - - 1 ,416 INCOME RECEIVED FROM OPERATING ACTIVITIES 700,186 669,200 727,803 666,592 499.944 413,591 EXPENSES Personnel 331,465 341,673 319,057 348,876 259,819 244,322 Matedals & Supplies 12,990 22,545 21,315 22,155 16,616 12,005 Aviation Fuel Purchases 81,584 90,328 105,924 93,888 70,416 25,424 Services & Charges 200.230 231,896 225,510 226,122 169,592 131,333 Cost Allocation to General Fund 7,915 7,915 7,915 7,915 5,936 5,938 Maintenance 48,137 64,490 50,859 66,057 49,543 42,291 Interest on West GA Hangars Loan (accrued monthly) 13,237 6,328 6,328 5,862 4,397 4,397 INCOME USED FOR OPERATING ACTIVITIES 695,557 765,175 736,909 770,875 576,319 465,711 NET INCOME FROM OPERATING ACTIVITIES - GAIN I (LOSS) 4,629 (95,975) (9.105) (104,283) (76,375) (52,120) OPERATING & CAPITAL - FBO OPS 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual YTD REVENUE Rents & Leases 25,000 18,056 13,868 Aviation Fuel 1,643,867 1,187,237 820,484 DLA Fuel Sales - Liability to MA (7,485) FED Accessory Revenue (sales) 6,083 4,393 14,937 INCOME RECEIVED FROM OPERATING ACTIVITIES - - - 1 ,674,950 1,209,686 841,803 EXPENSES Personnel 180,901 130,651 106,062 Materials & Supplies 8,923 6,444 5.838 Aviation Fuel Purchases 1,321 ,296 954,269 631,001 Services 8 Charges 139,451 100,715 37,525 Cost Allocation to General Fund 16,667 12,037 - Malntenance 13,541 9,780 7,457 Capital Investment Prof 51301 (FBO Startup costs) 98,437 98,437 90,637 INCOME USED FOR OPERATING ACTIVITIES - - - 1,779,216 1,312,333 878,519 NET INCOME FROM FBO ACTIVITIES - GAIN I (LOSS) - - - (104,266) (102,647) (36,716) INVESTING ACTIVITIES 2011 2012 2012 2013 2013 2013 Actual Budget Actual Budget Budget YTD Actual Y7D 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 Rumvay 16 Safety Area Deficiency Phase III 391,775 - - - 10022 AIP #39 Wildlife Hazard Assessment 33,205 - - - _ - 10028 Airport Fuel Farm Repair (512) - a 11017 Airport SecurityImprovements 128,693 51 ,095 51,078 - � - 11019 Airport Stonn nater 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 IS 159,392 12012 AIP #41 Pavement Rehab & Re-Marking Phase II - 147,252 117,176 - - 13024 Airport Ground Service Equipment Acquisition - - - 18,025 16,498 USED FOR INVESTING ACTIVITIES 802,631 486,301 454,061 288,695 174,398 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 11 ,647 11 ,647 One-time Paydown on Hangar Loan 305,626 - - - GRANTS STATE / FEDERAL Due/Received from State Giants on Fed Projects 195,779 34,417 27,156 - - Due/Recelved from AIP 938 Correct RW 16 RSA Phase III 372,186 Due/Received from AIP #39 Wildlife Hazard Assessment 51,343 - m Due/Received from Dept Aero - Fuel Farm Repair - - Due/Received fmm Dept Aero - Airport Security Improvements - 144,000 143,816 - 0 - Due/Recelved from AIP #40 Pavement Rehab & Re-marking 239,465 DueRtecelved from Dept Aero - 80/20 Hangar Rehab - 210,600 210,098 - - Due/Recelved from AIP #41 Pavement Rehab & Re-marking Phase II - 105,741 104,828 - - Due/Received from Dept Aem - 80/20 Executive Hangar Office Addition - - - 240,822 " 137,516 NET INCOME FROM FINANCING ACTIVITIES 525.118 479,228 470.368 225,292 125,869 AIRPORT CASH BALANCE 616,222 513,174 623,423 351,471 485,058 CURRENT ENCUMBRANCES (CAPITAL) MCE TASK ORDER #9 • Plans, Specs, Proj Admin, Exec Hangar Office Addition 6,031 7,360 Centerpolnt Contractors Inc - Construction, Exec Hangar Office Addition 256,675 134,590 Hangar Loan Principal 201,886 190,239 APPROVED GRANTS (Not yet accrued) - CAPITAL PROJECTS Stale Giants on Federal Projects - State Grant - Exec Hangar Office Addition 240,822 103,306 AIRPORT CASH MINUS LIABILITIES 127,700 257,174 -i wox1 zoo Z > M -no O 0000 - mac 0 D cnmD > mDw0 (n -:3. OZM � co O y r y (n X m m T m 3 � y � --13 (n > y " < 'O 00 W m r D OF f mmm � M m W 0 Z m < 0 O O F m C r mem CD w m 1 0 w m 1 n m m , ino) mZ 3. r3 0 -1 o ( D �7 W W = W o_ m Om = CD N 0 W o 0 W W I w r of N � N W A tN0 O W N V O (n O o to" i ooy O O A O O) O O O 1 � D � r cn O D rn m m D r to o cn o r o 0 0 o y 0 0 0 0 m 0 O W N W 00 A_ m N O y wwwwwommo N O O O O O O O O O O O 4U d W d 4U N d d 0 (D M fU (D (D N tD (D .� W N (D N N N N m n . > > > > > > > C CL D D D S 0 > 0 w f f F 0W. d y y y 3 y y W N 0 W y y y y c y Q a m D 0 c n 3 W D j y 7 N c .Ci W y 0 O • a ��1 le THE CITY OF FAYETTEVILLE, ARKANSAS y 1 DEPARTMENT CORRESPONDENCE ARKANSAS MEMO TO THE AIRPORT BOARD TO: Bob Nickle, Chairman Airport Board Airport Board Members FROM: Ray M. Boudreaux, Director, Aviation 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 1 . 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 • mine Fayetteville Board Mulls Hangar Rent Price Could Increase For 81 Tenants At Drake Field rY Andy Shupe Pat Ross of Fort Smith, owner of Ross Executive Aviation Inc., shows the interior of a T-hangar that he rents Friday, Oct. 4, 2013, at Drake Field in Fayetteville. By Joel Walsh Sunday, October 6, 2013 FAYETTEVILLE — Airport Board members could raise rates for 81 tenants who rent T-hangars at the Fayetteville Executive Airport for the first time in four years. Airport policy calls for the board to review T-hangar rent every two years. Increases are typically based on changes to the Consumer Price Index, which measures the cost of consumer goods. A T-hangar refers to the shape of the space for small airplane storage. Board members in 2011 decided not to increase rent in the aftermath of a recession. That could change this year. At A Glance "A modest increase would be appropriate," Ray Boudreaux, airport director, said in a Sept. 11 memo to the board. Boudreaux said Rental Rates Thursday he didn't think board members had the appetite to raise rates The Fayetteville and Springdale airports offer a variety of in a still recovering economy. enclosed T-hangars. The closest comparable sizes and monthly rents are: According to the formula airport administrators use to calculate T- hangar rent, rates would go up $15 per month. For a 1 ,392-square-foot Fayetteville Executive Airport•Sphngdale Municipal Airport hangar, rent would increase from $190 to $205, a 7.9 percent increase. 1 ,050 square feet: $160'940 square feet: $131 James Nicholson, Drake Field's financial coordinator, said 1 ,392 square feet: $190.1 ,020 square feet $143 administrators expect to collect $178,600 in T-hangar rent this year. That's about one-third of the airport's income from rents and leases 1,440 square feet: $195'1 ,217 square feet: $161 - f and less than 10 percent of the overall $2.4 million operating budget. Sources: Fayetteville, Springdale The city-owned airport also receives rental income from corporate tenants and businesses leasing space in the airport terminal. Nicholson said Friday corporate tenants see automatic rent increases based on lease agreements. Board members were divided last month on how to proceed. Mike Gibbs said it's hard to justify a rent increase when several of the T-hangars aren't being used for aircraft storage. "We don't have the demand for those hangars," Gibbs said. According to Boudreaux, four of the 81 T-hangars are being used for general storage. As people sign leases for their airplanes, tenants who use hangars for general storage are given 30 days to move out. Bob Nickle, board chairman, said, with hangar space full at Drake Field's main competitor, the Springdale Municipal Airport, he wasn't sure a modest rent increase would cause tenants to leave. Nickle said raising rent would help pay for airport maintenance and to match state and federal grants. Operating revenue fell $9, 105 short of expenses in 2012, according to financial reports, and a $91 ,683 shortfall is budgeted for this year. Nicholson told board members last month the airport's cash-on-hand dropped below $500,000 for the first time in months. "Obviously, our operating costs have not gone down here," Nickle said. Pat Ross, who runs a flight training and aircraft sales company and has leased space at Drake Field since 1994, said rent increases would be tough to swallow, especially with the price of fuel at the airport. "I think the Airport Board needs to think seriously about what they're about to do," Ross said. According to a Sept. 11 report from Nicholson, the price for Drake Field's full-service 100-octane, low lead gasoline was second-highest among eight airports in the region. At $6.85 per gallon, it trailed only the Northwest Arkansas Regional Airport in Highfill. The price of jet fuel, $6.22 per gallon, was the highest in the region, according to Nicholson's report. The Airport Board is scheduled to meet at 1 :30 p.m. Thursday.