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HomeMy WebLinkAbout2014-01-09 - Agendas - Final FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES December 12, 2013 MEMBERS PRESENT: Bob Nickle, Josh Mahony, Bill Corley, Mike Gibbs, Marty Burggraf, Ken Haxel MEMBERS ABSENT: Rick Bailey OTHERS PRESENT: Wayne Jones-MCE; Warren Jones-AA&MM; Joel Walsh-NWA Times; James Nicholson-Financial Coordinator; Lauren Treat-Administrative Assistant; Neal Bilbe-City Government Channel; Terry Gulley-Transportation Department; Craig Young-tenant; Dan Wilkins-tenant; Mike Bowman-Tower; Terry Raskiewicz-City Internal Auditor ITEM #1 : Welcome. Chairman Nickle. ITEM #2 : Approval of the Airport Board Minutes of the November 14, 2013 meeting. A motion to approve the minutes with the proposed change was made by Marty Burggraf, and seconded by Bill Corley. The motion carried. ITEM #3 : Receiving of Reports. A. Director Boudreaux, Aviation Director. Reported that due to the inclement weather in December, there has been a setback in operations. Mike Bowman in the Tower said we need approximately 60 operations a day to be even but Boudreaux doubts we will get there. Reported fuel sales have been good, but the weather has certainly put a damper on our sales. Boudreaux said there is a new budget deal being discussed in the House of Representatives in Washington DC. It would give the government two years of operating funds and includes FAA funds for the towers, etc. If this agreement passes, there will no longer be an issue in funding the tower in 2014. Boudreaux said the annual meeting for the Arkansas Air and Military Museum is rescheduled to December 14`h. Board members and officers will be elected at that time. Boudreaux said DFAS payments for all of our current and upcoming activity are arriving properly. However, the older missing payments have not been resolved with Million Air yet. Boudreaux has faith that we will get the money, though the timeframe and process are inconvenient. Gibbs said he is officially uncomfortable with the situation the way that it is right now. Boudreaux said he is not happy with it either. Gibbs asked if Kit Williams knows anything about the situation and Boudreaux said no. Boudreaux said that working with the federal government is always a long, drawn out process and there are so many people involved. Mahony asked if we are expecting to get the money from Million Air or DFAS? Boudreaux said two things could happen — first, there could be a change of agreement and all the payments will be sent to us. The transactions will then be sorted out and we will pay Million Air what they are owed. The second possibility is that DFAS will pay ._ Million Air, who will pay us what we are owed minus the .47 cent per gallon which was previously negotiated. Either way, this will not be an easy process. Terry Raskiewicz, the City's new internal auditor, said she is aware of the situation and learning more about it. She said this needs to be sorted out before the external auditors arrive. Boudreaux said as of now, we are holding the .47 cents per gallon owed to Million Air until the payments get squared aware. He also mentioned that the .25 cents per gallon owed to us by the IRS needs to be collected, as well. It will take 60-90 days until we can get permission from the IRS in order to officially apply. Nickle said, if we are approved, will this be retroactive? Boudreaux said yes and we have 24 months to apply for that money. More discussion followed of payments. B. Financial Coordinator James Nicholson, Budget Report. Nicholson said even though the weather has been poor in so far, we should still end up very close to last year' s number of operations. He said a similar situation is occurring with fuel sales; we should end up around 360,000 gallons sold which includes the sales from Million Air in the beginning of the year. Jet Sales make up 80% of overall sales; 20% is AvGas. Nicholson said this has been true for as long as he has been at the airport. He thanked our base customers for their continued support buying fuel. Jet A's average margin is less than typical for the month but this is mainly because of a recent large bulk fuel sale to Flying Investments. Nicholson said overall we are very close to the local market fuel prices, but we are a little higher on the Jet side. He pointed out that our self-service prices are lower than Springdale, Bentonville, and Fort Smith. Nicholson said we were lucky to purchase fuel right when prices were at their lowest, which has helped us keep our price low. Boudreaux reminded everyone that our fuel price is based on the average price of the fuel in the tank. 1 . Nicholson said that we are now recording our sales information from the FBO from the self-serve, DLA, etc. on a daily form. Janessa is handling this. Janessa introduced herself to the board. Nickle mentioned that our next bottom line will be improved since we will not have the large startup cost again. More discussion of financial report followed. Gibbs asked about data on the airport's average fuel price per month and number of gallons sold per month. Nickle said the info before the City took over might not be too valid or verifiable. Gibbs said he would like to experiment with the data and see what it does/doesn't tell us. C. Administrative Assistant, Lauren Treat, T-Hangar Report. Reported all hangars are full with three rented for storage. D. Wayne Jones, McClelland Engineers, Construction Report. Wayne said he sent a work schedule to Ray a while back but the contractors have not been able to meet their deadline due to the adverse weather. He discussed a few final tasks that will be completed in the upcoming days. Boudreaux said there might be some scarring on the grooving on the runway due to the blading operations that were performed during the ice storm. Wayne said the ice might have bonded to the grooves/joints and got pulled out when the ice clearing machine went over it. The board thanked Wayne for the tour of the NFlight hangar and for lunch. E. Museum Executive Director Warren Jones, Museum Report. Warren said there was a wedding at the museum last weekend and everything went great, even with the adverse weather. Warren talked about Patrick Carter's (NFlight) idea to give rides in the Stinson. Right before Christmas, he is going to give underprivileged kids a plane ride. The flight will go over the square to see the Christmas lights. The kids will get to open presents and there will be a Santa Claus. Carter is paying for all of the fuel. Warren also thanked Mike Bowman in the tower for his generosity in letting groups of kids check out the tower as part of their museum tour. F. Marketing Committee Chairman Bill Corley, Marketing Report. Corley said overall, the committee is in a holding pattern as we search for an answer to the budget dollars and measureable objectives questions. Corley said he is going to share a vision at a future meeting. Corley will come up with his best idea on what we should say and how we should say it. The board thanked Corley for volunteering to do this. Nickle suggested Corley and Darryl Riddell sit down and discuss his ideas. Riddell has great insight on pilots and he has been to many airports Gibbs mentioned that in the past, the board agreed to allow advertisements in the lobby. Corley said yes, it is a no brainer and he is going to talk to the folks at XNA and see what they do. Drake Field might be able to do a scale version of what is done at XNA. More discussion of signage/lighting continued. ITEM #4: Old Business. None. ITEM #5: New Business. A. Board Resolution Discussion: Contract Tower Boudreaux said last meeting, T Hangar tenant Rick McKinney requested a resolution regarding the Aviation Tax Fund to use its money to support the air traffic control towers. The ATF money will not be needed now that there are new agreements on the floor. However, Boudreaux still put together a resolution since it was requested by a tenant. Boudreaux apologized that he did not have the resolution ready to present to the board at this meeting; the document was not properly saved and the data was lost. ITEM #6: Other Business. A. Items from the Public. Lighted Sign in Lobby. Boudreaux introduced T Hangar tenant Dan Wilkins to the board and said he has expressed interest in placing a lighted sign in the lobby for his business. Wilkins is the assistant chief flight instructor for summit aviation. Wilkins said with the airport's permission, he will purchase all the hardware necessary. The proposed space would be about $50/mo. for a 2 x 3 or 3 x 4 lighted sign. Wilkins said Drake Field is kind of home for him and he said that we definitely have the best ATC in this part of the US. Boudreaux admitted that Wilkins' flying school is a competitor to two of the flying schools that are based at Drake Field. Gibbs said he can see the issues that this might cause with our tenants. Corley said the advertisements will have to be done in a tasteful way, and we will need to do a walkthrough of the possible spaces in the building. Boudreaux said he would love to see advertisements in the terminal, though he did not know there was actually a market for it. Now that he knows that there is, it is time to get a policy put together and a contract created so we can offer this service to Wilkins and others. Boudreaux pointed out that if we offer the space, we have to offer it fairly to everyone. Even competitors of our tenants and businesses on field. Nickle said a policy will need to be put together. Boudreaux said he will get an advertising policy from XNA and wordsmith it for use at Drake Field. B. Items from the Airport Board. Terry Gulley discussed Boudreaux's upcoming retirement and the airport director position that will soon be open. Gulley said he is more than happy to listen to the board's concerns, what type of experience is needed, etc. with who is hired. Gulley said he would definitely be looking for FBO experience since we are running the FBO now. Nickle said the board could help add information to the job description. Boudreaux said the candidates should be aware that because Drake Field is a Part 139 airport, the director is totally responsible if something goes wrong. It is important to maintain our Part 139 classification in order to serve the University of Arkansas. Gibbs suggested that at least one person from the board should sit in on the interview process. Gulley said he cannot give an answer to that right now. Boudreaux said he anticipates his last day will be March 31 . Boudreaux presented a plaque to Chairman Bob Nickle. He served the City of Fayetteville and the airport board since Feb. 2003. Boudreaux thanked him for his service. Boudreaux also said that there has been an applicant for the open board position, but we still need to elect a new chairman. Boudreaux said Mr. Darryl Riddell of South Delta Aviation applied for the open board member position, as did a gentleman from KNWA. Boudreaux said Riddell has run an FBO, served on the State Aeronautics Board, and owns a big business on the airport selling airplanes. Nickle said he is happy that the airport had Boudreaux during the time when the airport converted over to a GA and the remodeling project was done. Nickle said Boudreaux knows the importance of this airport to the U of A and the community. Nickle said to remember Rick Bailey since his fall on the ice. MEETING ADJOURNED AT 2:56 P.M. J71" Mahony, Sec Date THE CITY OF FAYETTEVILLE, ARKANSAS Tave evl AVIATION ONI5101 4500 S School Ave, Ste F Fayetteville, AP ]2]01 APNAN SAS P (479) 71 BJ6C3 QUARTERLY REPORT/ANNUAL RECAP 4th QUARTER 2013 FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD January 6, 2014 THE FAA CONTRACT TOWER PROGRAM: Calendar Year 2013 was eventful in many ways. The year kicked off with threats from the FAA closing the Air Traffic Control Tower at Drake Field, along with the towers at many other airport all across the Country, due to a law passed by the Congress requiring the Government to stop spending money it did not have, the Sequestration. The Contract Tower program was put on the chopping block by the FAA as an easy target to reduce funding to the level required by the Sequestration. We submitted letters of justification to the FAA with copies to our representatives but closure was set for April. We negotiated an agreement with our tower operator RVA/Cl2 to operate the tower from 8am until 8pm daily (a reduction of 4 hours a day) should the tower actually close. The City Council agreed to appropriate $ 100,000.00 to pay for the tower operation should the FAA follow through with its threats. We filed an intent to continue to operate the tower by entering into an agreement with RVA/Cl2. On a Thursday, we received an agreement from the FAA to lease the tower facility for $5,280.00 per month. Of course, we could not pay the contractor to operate the tower and the FAA to rent the tower—crazier by the minute! Of course we changed the amount to $ 1 .00 and other valuable considerations (like running the Tower for the FAA) and were prepared to process the agreement through the City Council for signature and the next day, Friday, the FAA announced that they had delayed the closure again until June. Over the summer, Congress made changes to the way the Contract Tower Program is funded so the Towers were safe until September. In September, Congress put off decisions again and funded the tower program through the first of the year. In December Congress passed a funding bill that bought down $4513 in sequestration reductions that could result in funding for the towers thru FY2014. The final requirement would be the passage of the DOT/FAA funding bill sometime after January 15. The contract tower association leadership feels good about the continuation of funding thru 2014. THE CITY TAKES OVER FBO, BUYS OUT MILLIONAIR: As 2013 began, negotiations with the FBO began to fall apart. The company, REW Investments, was four months behind in rent and flowage fee payments so the City Council was petitioned to allow that staff to declare the company in default and to cancel the contract. MillionAir wanted to continue but was unable or unwilling to bring accounts up to date so the cancellation went forward. Effective March 16, the City was the FBO and MillionAir was no longer under contract with the City to provide FBO services. We were able to hire most of the MillionAir employees and to purchase their equipment so the transition was transparent to our customers. We are still trying to straighten out the Defense Logistics Agency payments due. The DLA contract was transferred to the City by Novation but during the transition, some payments went to the MillionAir bank account and the information associated with those payments has not been released by DLA so we have not been able to ferret out accurate information. The current transactions are working very well and payments to the City are processing in a couple of days, but the transactions from February thru June are still unresolved. Another detail that must be resolved is the Federal Excise Tax must be applied for after the DLA payments are made but you must have permission to file with the IRS for the Excise Tax reimbursement. We are still waiting on permission from the IRS. ARKANSAS AERONAUTICS COMMISSION GRANT FOR NFLIGHT TECHNOLOGY HANGAR MODIFICATIONS: We began the grant process in 2012 and had to cancel the bids for the NFlight Hangar project due to the lack of funds available at the State. The economy had caused the state revenues to be down so hangar modification projects were not funded. We were able to reapply for a state grant in the Spring and it was approved. We inspected the work in mid December and will be able to close the project by mid January 2014. The people have moved into the remodeled space. FAA SAFETY AREA PROJECT COMPLETED : The FAA replaced the mounts on all ODALS on both ends of the runway and leveled the ground around the bases. This project was done by the FAA and the contract was awarded by the FAA for several airports in the area. The contractor completed the work on schedule and in accordance with our requirements. CITY INFORMATION TECHNOLOGY MOVE TO THE AIRPORT: The City IT Division made the decision to move operations to the airport to take advantage of the City owned space and the security provided by the airport environment. IT let a contract to build a data center and to install an underground fiber optic network to supply the entire City and the Data Center. They relocated the Network Administration offices to the airport and located in the former fire station. FAA WILDLIFE HAZARD ASSESSMENT AWAITS FAA APPROVAL: The Wildlife Hazard Assessment was complete in 2012 but has yet to be approved by the FAA. We have been patiently awaiting approval but prepared our wildlife plan anyway and presented it to our Certification Inspector. He has acknowledged required changes to the assessment but has not had the time to complete his approval of the document. Once he completes his approval of the assessment, he will consider our management plan for approval. AIRPORT ACTIVITY REMAINS STEADY FOR THE YEAR: The fuel sales and operations numbers for 2013 were about the same as last year. December was not as strong as we had hoped due to a 10 day weather event that resulted in little or no activity. Operations for the year were better than 2012 by 300 operations which is less than 1 % growth year over year. A slightly different picture is painted when the last three quarters of 2012 are compared to the last three quarters of 2013 (the period which the City ran the FBO fuel sales). During this period, the operations count falls 4% below last year. Fuel sales paint a similar picture as we only sold 15, 133 gallons of fuel in the December. That places fuel sales for 2013, 3 .5% below 2012. It was not all the result of the bad weather in December although snow reduced operations by 25% in December alone. Other factors affected activity in 2013. First was the Sequestration Law passed by Congress and enacted about the same time the City took over the FBO operation which resulted in the military curtailing training flights. It also caused some government contracts to be delayed so some business travel was also delayed. Fuel prices spiked over the year causing some to cancel flights and those that used our airport, did not buy fuel or purchased less than what they would have purchased if the cost had been less. We ended the year below our revenue projections but we also were below our expense projections and thus ended the year only approximately $8,000.00 below the line revenue over expenses. If we take out start-up expenses, the operation made approximately $80,000.00 ARKANSAS AIR AND MILITARY MUSEUM FIRST YEAR SUCCESSFUL: The first year as one organization was successful, or at least the museum is still open to the public and has enough money to pay the bills. Many special events have kept the doors open to the Museum. The EAA B-29 visited twice this year. They plan to make an annual visit during the Bikes Blues and BBQ rally. The museum hosted the Air Race Classic finish line with support of the airport. More than 30 racers finished the cross country race at Drake Field. T HANGARS USED FOR STORAGE REDUCED: We began 2013 with 10 T Hangars rented for storage. We made the decision to rent the units for other than aviation purposes in order to preserve the revenue that the hangars produce to the budget. 10 hangars produce approximately $ 18,000.00 a year. By the end of 2013, we had three hangars for storage as people with aircraft rented the hangars. We expect to have all T Hangars filled with aircraft in the next few months. The Board raised the rent for the T Hangars for the first time in 6 years by $ 10 per month small and $ 15 per month large. SPORTS CHARTER PROGRAM EXPANDING: 2013 was the second year that the Boeing 757 operated by American Airlines used Drake Field to pick up and deliver the Razorback Football Team. Visiting Football Teams continue to use other airports because their hotels are in Rogers but the visiting fans, band and cheerleaders fly into Drake using large commercial aircraft. The other U of A sports teams use Drake and the size and needs of the charter aircraft has increased necessitating more ground support equipment and more fuel. We expect the program to continue to expand as the teams achieve greater national status in their sport. ARKANSAS AIRPORT OPERATORS ASSOCIATION CONFERENCE HELD IN EUREKA SPRINGS : The 2013 Conference was well attended in Eureka Springs and I completed my term as President of the organization. It was one of the most successful conferences in the history of the organization. I will remain on the board as the Past President for two years. FAA/AIP PROJECT FOR 2014: Our FAA Program Manager, Paul Bums, has encouraged us to apply for a Design Only Project for the Terminal Apron Rehab Project which we hope to be able to get funded in FY 2015. We have saved two years in entitlement funding towards the Terminal Apron Project and should have sufficient funding available in the Fall of 2014. The Design only Project will allow us to have the project ready to go to bids as soon as funding is assured. AIRPORT STAFFING CHANGES IN 2013: When the City took over the FBO, an additional eight persons were authorized. Most of the new City hires were Million Air employees. The new Line Manager was hired from XNA. After the first six months we ended up with 6 additional persons in the Airport staff, a Line Chief, four Linemen, and a Customer Service Representative. Until the business grows, we should be able to operate with this level of manning. AIRPORT BOARD CHANGES FOR 2014: Bob Nickle, Chairman of the Airport Board since 2005 retired at the end of the year. Darryl Riddell was selected by the City Council to fill his Board position. The Board will elect officers at the first meeting in 2014. Respectfully Submitted, Ray M. Boudreaux, Director • aeVl e e ARKANSAS Airport Progress Report TO: Fayetteville Executive Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: January 9, 2014 Tower Operations Cumulative MONTH 2008 2008 2010 2011 2012 2013 MONTH 1 2008 2009 2010 2011 2012 2013 JAN 21180 2492 1,932 1,917 2,552 2,928 JAN 2,180 2,492 1,932 1,917 21552 2,928 FEB 2,629 2,902 2,214 1,320 2,138 2,540 FEB 4,609 5,394 4,146 3237 41690 5,468 MAR 2,333 2,807 2,418 2,818 2,161 2,889 MAR 7,142 8201 6,564 6,055 6,851 8,357 APR 2,747 2,629 2,775 2254 2,763 2,687 APR 9,889 10,830 9,339 8,309 9,614 11,044 MAY 3032 2,722 3,015 2627 3,180 3,090 MAY 12,921 13,552 12354 10,936 12194 14134 JUN 2,727 2,876 2,531 2,859 3,195 4,059 JUN 15,646 16,428 14,885 13,795 15,989 18193 JUL 3,657 3,100 2895 21758 3,050 2648 JUL 19305 19,528 17780 16,553 19039 20841 AUG 3,3581 2,868 2,5131 2,6761 2,951 2,668 AUG 22,663 22,396 1 20,283 19,229 21,990 1 23,509 SEP 3,559 3,577 2,664 3,503 4,664 4,331 SEP 26 25,973 22,977 22,732 26,854 27,840 OCT 3,350 2,677 3,125 2,998 3,320 3,649 OCT 29,571 28,850 26,102 25,730 30,171 31,489 NOV 2,739 2P586 1964 2t379 3P392 2194 NOV 32 311 31 28068 28,109 33P565 1 34P283 DEC 2,015 1 11842 1 1,841 1 2,1641 2,5461 2,132 DEC 1 34,326 33,0781 29,9071 30,273 36,1121 36,415 IMonWyAvg 1 2,861 1 217571 2,492 1 2,5231 3,009 1 3,035 VmualCh 43.73% •3.64% •9.59% 122%1 1929% 0.84% Operations - 12 Month Comparison -2013 -2012 - 2011 5,500 5,000 4,500 g 4,000 g 3,500 O 3,000 c 2,500 z 2,000 1,500 1,000 JAN FEB MAR APR MAY JUN JUL AUG se OCT NOV DEC Month OPERATIONS Month Average Annual Comparison OTNA3VEMDNTH AVF3�AGE 4,600 4,004 3,898 4,000 3770 3,600 3,009 - - 3.000 2,881 ' 2,492 2,523 2,500 O 2,000 1,500 1,000 500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Porlod: Jan - Dec FBO Fuel Sales Cumulative MONTH 2008 2009 2010 2011 2012 2013 MONTH 2008 2009 2010 2011 2012 2013 JAN 41058 38,062 35,528 35,938 27,865 29,621 JAN 41,058 36,052 35,528 351938 27,865 29,621 FEB 50320 43,497 35468 20,909 29,824 32,602 FEB 91378 79,559 70,994 56,846 . 57,889 8222& MAR 39,089 46608 41,809 37,333 28,827 35,761 MAR 130,487 128187 112,803 94,178 86,516 97981 APR 41,265 31,705 30,763 27,611 27,085 28155 APR 171,732 157,872 143566 121,789 113,801 126,139 MAY 37587 33136 31018 26206 29,481 25,135 MAY 209319 191,000 114584 147995 143082 151271 JUN 30,837 28218 27,216 31,677 32,961 30,918 JUN 240,156 219226 201,800 179,672 176,043 182,192 JUL 32114 28021 26818 23,892 28,068 24961 JUL 272270 145 47 228428 203581 204111 207153 UG 1 350827 1 25,0181 25,011 1 23,5951 31,8351 23,568 JAUG 308,097 I 270,765 1 253,4391 227,1491 235,946 1 230,721 SEP 41,059 39f5 39845 31879 44937 42821 SED 355,156 30$280 293284 259028 280,883 273542 OCT 52,329 44,578 48,581 29,878 32,537 34,953 OCT 401,485 353,888 341,865 186,701 313,420 308,495 NOV 37,8921 30,489 1 33,718 . 32,6031 28,744 1 30666 NOV 1 445,371 1 3B4,337 375,5831 321,307 342,1641 339,161 DEC 1 30,1431 28,732 1 24,4701 23,1031 25,151 1 14,850 IDEC 1 475,5201 413,069 1 400,053 1 344,410 367,3211 354,012 lMmM Avg 1 39,627 1 34,4221 33,3381 28,7011 30,6101 29,501 jAnnual Chg 1 .5.99% -13.13% 3.15% -13.91%1 6.65% 3.62% Estimated YE Total: 363, 103 2013 Cumulative Avg Fuel Sales by Percent of Type Fuel Sales by Marol 2713 50 me ANr1r,Aas3F DLA E .7 a% a 30 C 20 _ 10 ma3awr1001.4 aASSOE3.255% 9A5®10011. 10.5110 9.913 0 JON Fag MOR APR ANY AN AL AUG S® OCr NOV CB Fall Sobs.12 Nola kmpul a -M13 -2012 2211 FUEL UW p19aVE100NAVa3af A Mme ANNA Amatil CampNb9a MAD 3 4 6900 e 12900 9220 - 6 »75p00 3AY6 N@ 37.20 AA L A e 6.000 S um IO AN 8 MR AM MY AN LL AIG IF OCT NN Z Am Am Am 201 I AN All AO W3 amm Pm6! Aa-0N Fuel Sales - Avera a Margin Tracking DEC 2013 DATA JET A 11001.1. 100LL SS MOGAS TOT ALL AVG COST/GAL 3.9772 4.9340 4.8350 3.3284 4.2957 GAL SOLD 9505 4247 916 184 14851 GROSS REV 49379 25173 5128 733 80413 AVG GRS REV/GAL 5.1951 5.9279 5.5979 3.9948 5.4146 AVG MARGIN/GAL 1 .2178 0.9939 0.7630 0.6665 1 . 1169 TARGET MRGN/GAL 1 .50 1 .25 0.75 0.50 1 .4459 DIFFERENCE 0.2822 0.2561 0.0130 0. 1665 0.3269 VARIANCE 18.81 % -20.49% 1 .73% 33.29% 22.61 % Local Fuel Prices: Fuel prices within 50 miles of FYV as of 1 /8/14 Ident FSO Name Jet FS 10OLL FS 10OLL SS 91 MoGas A $ Jet A $ tai A S 1MSS H34 HunstAlle Municipal - 4.95 NC MH City of Tahlequah both selfsery 4.99 5.39 NC 0.01 SLG City of Siloam Springs 5.41 5.65 5.15 NC NC NC VBT Summit Aviation 5.85 6.15 5.95 NC NC NC ASG Pinnacle Air Services 5.85 5.99 5.65 (LO-5 L (0.16) NC XNA Regional Jet Center 5.87 6.24 0.08 0.66 FSM TAC Air 6.06 6.36 6.27 0.13 0.01 0.46 ROG Beaver Lake Aviation 6.08 6.16 0.72 0.06 FYV City of F tteville 6.26 6.44 5.60 4.04 0.11 NC NC Fuel Prices: National 01/08/14 Source: GlobalAir.com Aviation Fuel Current US Fuel Prices Current Fuel Prices 8 Averages by Region Nodhrusl klaunium N"" ""'fund Gruel Lukes S . S -' - ` © WWW��,fffiiiWWW S : 1• ©IIIA Euslern MM Cenkul 55 , 2 cell® s- ;M © ®D Nbslum loaakc �IIII S ° , S 8 Soulhmn Soulheusl ©IIID S ' sIC9 Alaska Mss ©WIW O SERVICES & CHARGES Administration TayeV le Public tios & du 1224 Publications & dues 1743 Travel 8 training 4792 s Postage 300 Business meals / expenses 100 Annual audit expense 2200 FAYETTEVILLE EXECUTIVE AIRPORT Software Lease 3168 OPERATING ACTIVITIES (Admin & Maim) BUDGET 2014 Utilities 113000 RENTS AND LEASES Sell Insurance 0 Rent 200700 Insurance personal liability 3126 Rant-Terminal 62800 Insurance Non-vehicle 2000 Rental on T-Hangars 182800 Professional Services 6000 Rental FAA 33400 Contract services 1415 Ground Rent Freight 34500 - Bad debt expense 1250 Restaurant Fees 500 Credit card service charge 3100 514700 Motor pool charges 1464 MISCELLANEOUS Replacement charges 1720 Misc 11900 Slop overhead 309 11900 Shop overhead insurance 207 NON-OP REVENUE Air Museum expense 5000 Sales Tax Revenue 32000 Promotional activities 0 Interest on Investments 1800 Special Assessments 32550 33800 Inventory Adjustments 0 208274 TOTAL REVENUE 560400 Maintenance Uniforms personal equipment 2603 FBO OPERATION ACTIVITIES Publications & dues RENTS AND LEASES Travel & training FBO Hangar Rent 24000 Equipment rental 500 24000 Contract services 4555 AVIATION FUEL Motor pool charges 9359 AVGas Revenues 363000 Replacement charges 17677 Jet Fuel Revenues 1489000 Shop overhead 2799 87 Mogas Revenue 15500 37983 1867500 FBO Ops MISC Travel & training 0 FBO Accessories 25000 Equipment rental 240 25000 Ufilities 16830 Telephone 1090 TOTAL REVENUE 1916500 Insurance vehicles / buildings 13740 Contract services 1560 EXPENSES Bad debt expense 1000 PERSONNEL Credit card service charge 56600 Administration 223549 Employee recognition 100 Maintenance 108200 Promotional activity 3500 FBO Ops 261878 Inventory adjustments 2500 593627 Motor pool charges 240 MATERIALS & SUPPLIES Replacement charges 2326 Administration Shop overhead 609 Office supplies 2050 Shop overhead insurance 359 Copies & copier lease 1100 107691 Chemicals 1000 GENERAL FUND COST ALLOCATION Software 200 Administration 7915 Minor Equipment 1400 Maintenance 0 Fuel 687 FBO Ops 16667 6437 24582 Maintenance MAINTENANCE Office supplies 100 Administration Cleaning supplies 1600 Office machine Maintenance 0 Chemicals 2010 Small equipment maintenance 0 Minor Equipment 1120 0 Signs 2400 Maintenance Fuel 8008 Building & grounds maint 62531 15238 Radio maintenance 2039 FBO OPS Vehicle & machine maint 4500 Office supplies 5550 Lighting equipment maint 4100 Copies & copier lease 833 Small equipment maint 700 Cleaning supplies 1000 73870 Minor Equipment 1000 Building & grounds maint 11250 Signs 1000 Radio maintenance 500 Parts Oil & Accessories 3587 Small equipment maim 1000 Tires 2500 16350 15470 ATC TOWER COSTS AVIATION FUEL PURCHASES Administration 0 Gasoline 19116 0 Jet Fuel 1003771 AVGAS 291480 DEBT SERVICE ON W GA HANGARS LOAN 1313367 Administration 21140 21140 TOTALEXPENSES 2434029 ayeevi le ARKANSAS FAYETTEVILLE EXECUTIVE AIRPORT OPERATING SUMMARY MONTH ENDING 12/31/2013 AIRPORT BOARD - OPERATING ACTIVITIES - ADMIN 6 MAINT 2011 2012 2012 2013 2013 Actual Budget Actual Budget Actual YTD REVENUE Rents 8 Leases 527,962 511,800 536,243 508.492 509,268 Aviation Fuel 114,865 119,500 157,525 18,091 18,091 Miscellaneous 11 ,869 11,900 8,586 2,900 7,507 Operational Transfers - FEMA Reimbursement 15,857 - - - - NON-OPERATING INCOME Sales Tax Revenue 29,733 26.000 25,449 25.600 21,969 Non-Op Miscellaneous (100) - - - 3,324 INCOME RECEIVED FROM OPERATING ACTIVITIES 700,186 669,200 727,803 555,083 560,159 EXPENSES Personnel 331,465 341,673 319,057 348,876 303,881 Materials 8 Supplies 12,990 22,545 21,315 22,155 15,451 Aviation Fuel Purchases 81,584 90,328 105,924 93,888 25,424 Services 8 Charges 200,230 231,896 225,510 226.122 213.241 Cost Allocation to General Fund 7,915 7,915 7,915 7,915 7,915 Maintenance 48,137 64,490 50,859 66,057 55,204 Interest on West GA Hangars Loan (accrued monthy) 13,237 6,328 6,328 5,862 5,862 INCOME USED FOR OPERATING ACTIVITIES 695,557 765,175 736,909 770,875 626,978 NET INCOME FROM OPERATING ACTIVITIES - GAIN I (LOSS) 4,629 (95,975) (9,105) (215,792) (66,819) OPERATING & CAPITAL - FBO OPS 2011 2012 2012 2013 2013 Actual Budget Actual Budget Actual YTD REVENUE Rents 8 Leases 25,000 16,483 Aviation Fuel 1,643.867 1,260,380 DLA Fuel Sales - Liability to MA (9,751) FBO Accessory Revenue (sales) 6.083 35,190 INCOME RECEIVED FROM OPERATING ACTIVITIES - - - - 1,674,950 1,302,302 EXPENSES Personnel 180,901 165,491 Materials 8 Supplies 8,923 11,353 Aviation Fuel Purchases 1 ,321,296 919,285 Services 8 Charges 139,451 44,377 Cost Allocation to General Furl 16,667 - Mcintenance 13,541 12,969 Capital Investment Prof 51301 (FBO Startup costs) 98,437 90,637 INCOME USED FOR OPERATING ACTIVITIES - - - 1,779,216 1,244,113 NET INCOME FROM FBO ACTIVITIES - GAIN I (LOSS) - - - (104,266) 58,189 INVESTING ACTIVITIES 2011 2012 2012 2013 2013 Actual Budget Actual Budget Actual YTD NON-OPERATING INCOME Interest on Investments 5,098 7,800 4,041 4,200 1,734 Other - Unrealized Gain (Loss) on Investments - - (753) - - Gainl(Loss) on sale of assets - - - - 1,351 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 Storrnwater Protection Plan Update 2,500 - - - - 11023 AIP #40 Pavement Rehab 8 Re-Marking 252,069 - - - - 12002 Hangar Rehab - 4248 S School - 263,250 262,623 - - 12011 Executive Hangar Office Addition 32.504 26,473 274,870 242,649 12012 AIP #41 Pavement Rehab 8 Re-Marking Phase II - 147,252 117,176 - - 13024 Airport Ground Service Equipment Acqulsi0on - - - 18,025 17,273 USED FOR INVESTING ACTIVITIES 802,631 486,301 454,061 288,695 256,838 FINANCING ACTIVITIES 2011 2012 2012 2013 2013 Actual Budget Actual Budget Actual YTD LOANS Payments on Loan Principal (accrued) 28,030 15,530 15,530 15,530 15,530 One-time Paydovm on Hangar Loan 305,626 - - - GRANTS STATE I FEDERAL Due/Recelved from State Grants on Fed Projects 195,779 34,417 27,156 - - Due/Recelved from AIP #38 Correct RW 16 RSA Phase III 372,186 - - - - Due/Recelved from AIP 039 Wildlife Hazard Assessment 51,343 - - - - Due/Recelved from Dept Aero - Fuel Farts Repair - - - - - Dus/Receivedfrom Dept Aero - Airport Security Improvements - 144,000 143,816 - - Due/Received from AIP 040 Pavement Rehab 8 Re-marking 239,465 - - - - Due/Received from Dept Aero - 80120 Hangar Rehab - 210.600 210,098 - - Due/Received from AIP 041 Pavement Rehab 8 Re-marking Phase II - 105,741 104,828 - - Due/Received from Dept Aero - 80/20 Executive Hangar Office Addition - - - 254,224 215.297 NET INCOME FROM FINANCING ACTIVITIES 525,118 479,228 470,368 238,694 199,768 AIRPORT CASH BALANCE 616,222 513,174 623,423 253,364 557,723 CURRENT ENCUMBRANCES (CAPITAL) NICE TASK ORDER #9 - Plans, Specs, Pmj Admin, Exec Hangar Office Addition 6,031 5,518 Centerpoint Contractors Inc - Construction, Exec Hangar Office Addition 256,675 26,388 Hangar Loan Principal 201,886 186,357 APPROVED GRANTS (Not yet accrued) - CAPITAL PROJECTS State Grants on Federal Projects - - StateGrant - Exec Hangar Office Addition 254,224 25,525 AIRPORT CASH MINUS LIABILITIES 42,995 364,985 O O � 0 o � m D n o °m c o -4 3 = ms3: m 3 OZ { � C 5- Wnmm m � m0 y x m CL CDm a � vD fmp � ) D CoO 0 d m < m r < m mF d 0 M o � m � o m O 0 ZfXil < CL O O F n m C r m -im Z < Om m D O Ci-� D0, 0' mnc A V N6CT -lZ O j' CD 3 O f7 d _ � A W Ol N � CD COT -4 000( OT W 01 0 0 0 0 0 i7) A O O O O O A J Qcc D o r N m D D N v O O CT 0 0 0 o N 0 0 0 0 m 0 A d 0 A A V O O CT O O A O O 0 (n0 (n (n (n0 =i d a d Ll d 0 D D d N N N �. CD 3 > > > N d a m m a m :: �_ c 3 o w m CD 0 CD O C O a) N O N d w Boudreaux, Ray From: joel.bacon@aaae.org on behalf of Joel Bacon <joel.bacon@aaae.org > Sent: Tuesday, January 07, 2014 4:02 PM To: Boudreaux, Ray Subject: Airport Alert: Appropriations Update: Lawmakers Working to Fund Federal Government Beyond January 15 SS- CI I,T N „ OF AIRPORT rXF.yV,- UTIVES J a o-� t AAE D e I ikv ekr s , ,; E x p e r. ,ien cwe - a.N.YF 3Ss ��• 'M d 'aF y �LA . . . . . . . . . . . . . . . . . . . . . . . . . AIRPORT LEGISLATIVE ALLIANCE AIRPORT ALERT Appropriations Update: Lawmakers Working to Fund Federal Government Beyond January 15 January 7, 2014 Over the past few weeks since the passage of the bipartisan budget agreement in December, House and Senate Appropriations Committee staff and leaders have been working to try and wrap up a bill to fund the federal government beyond January 15 through the remainder of the fiscal year. As you will recall, DOT, FAA, DHS, TSA, CBP and the rest of the federal government are currently operating under the terms of a temporary funding measure that expires on January 15. While there are technically 12 separate spending bills to fund the government, at this point it looks like lawmakers will work to combine those bills together into a larger omnibus package. Leaders hope to finalize details of the package by the end of this week and have a final version ready for the House and Senate to consider next week. We will obviously keep you apprised of how things progress on this important measure, which will have a big impact on airport priorities. The AAAE staff is closely following a number of issues, but we are primarily focused on three priorities as efforts continue to fund the federal government for the next eight months. They are: t Contract Tower Funding: Given the experiences of last year and with the FAA facing continued budget challenges, we believe it is essential for Congress to provide dedicated funding for the Contract Tower program for the remainder of the fiscal year to ensure continued operations at all contract towers and towers in the cost-share program. Both the House and Senate DOT/FAA spending bills are supportive of that concept, and we are working diligently to ensure that a final spending measure includes dedicated funding for this important program. AIP Funding: Following the diversion of some $250 million in AIP funding in fiscal year 2013 to keep controllers on the job and contract towers open in the face of sequestration cuts, we are working hard to ensure that the final FY2014 spending bill for FAA includes full funding for AIP at the authorized level of $3.35 billion. Both the House and Senate bills have proposed funding at that level. CBP Staffing at Airports: Ensuring adequate CBP staffing at gateway airports remains a high priority for AAAE working in close coordination with ACI-WA and the Gateway Airports Council. The Senate DHS spending bill proposed increased funding for CBP personnel overall and a $2 increase in user fees aimed at funding nearly 1,000 CBP staff, which according to the Senate committee report could be "deployed to airports experiencing the greatest level of waiting times." We continue to urge decision-makers to find a way to maximize CBP staffing resources available to airports. We remain engaged in pursuing these priorities and will keep you apprised of developments. Stay tuned. Joel Bacon, Executive Vice President ® ® Brad Van Dam. Senior Vice President Gwen Papineau Basaria, Staff Vice President 2Safeunsubstsibe' • Cnr>:twCLnnt[t• Dy it REE todW This email was sent to rboudreaux@d.fayetteville.ar.us by ioel.bacon(a)aaae.ora I Update Profile/Email Address I Instant removal with Safetlnsubscribe^ I Rivacy Policv. AAAE 1 601 Madison Street, Suite 400 1 Alexandria I VA 122314 2 TERMINAL ADVERTISING AGREEMENT This agreement is entered into as of the day of 2014 by and between the City of Fayetteville, a public Corporation of the State of Arkansas which owns the Fayetteville Executive Airport, Drake Field (the "Airport") and PREMISES: A. The Airport is a General Aviation Airport serving the business and pleasure travel needs of residents and visitors of Northwest Arkansas (NWA). B. The Airport Terminal serves the needs of the traveling public by facilitating air travel to and from NWA. C. The purpose of this agreement is to grant authority to under the conditions and subject to the various covenants and agreements set out herein, to utilize the Terminal for advertising display(s). It is the intention of the parties that the advertising displayed shall at all times be in good taste, of high quality and in keeping with the operating standards of the City of Fayetteville and the Airport. AGREEMENT: A. The Airport hereby grants to subject to the terms, covenants and conditions of the Agreement authority to install and maintain, remove and to operate advertising display(s) subject to the advance written approval of the Airport Director. B. The location of the advertising display(s) shall be as agreed to in writing by the Airport Director following the written request of describing the display, its requested location and the intended message of the display. C. Standard wall mounted displays that measure less than 3 feet by 5 feet shall be invoiced at $200.00 per month as shall include the cost of electrical power installation of which shall be the responsibility of D. Freestanding displays shall be invoiced at a rate negotiated and agreed to and acted upon by the Airport Board. E. Discounts may be granted for businesses located on the Airport and leasing business space for the conduct of their business. TERM: A. The initial term of this agreement shall be for one (1) year commencing 12014. B. Provided that the parties agree that.the performance of this agreement has been satisfactory, the agreement may be renewed for two (2) additional terms of one (1) year. C. At the end of the initial term or should either party cancel this agreement, shall remove all fixtures associated with this agreement and put the Terminal .Building back to the condition in which it was found or better. D. Either party shall, with 30 days written notice, be able to cancel this agreement. LOCATION : A. The exact location of the display shall be approved in writing by the Airport Director following written request of B. The Airport Director may require a display to be moved or removed to facilitate modifications to the Terminal. will not be required to pay for a relocation or removal and shall be permitted to replace the display when the Terminal project is complete. Rent shall be adjusted to compensate for any time the display is removed from view. MAINTENANCE: A. shall keep the advertising display clean and neat and in proper working order. ASSIGNMENT PROHIBITED: A. shall not at any time in any manner, either directly or indirectly, assign, hypothecate, encumber or transfer this agreement without the prior written consent of the Airport Director. ENTIRE AGREEMENT: A. This agreement constitutes the entire agreement between the parties, and no representation or other commitment, whether oral or in writing, not included herein shall constitute a part of this agreement. This agreement may be amended on by an agreement in writing executed by both parties. CITY OF FAYETTEVILLE, ARKANSAS ADVERTISER By: Lioneld Jordan, Mayor Date Attest: Sondra Smith, Clerk Date i ARKANSAS DEPARTMENT OF AERONAUTICS STATE AIRPORT AID GRANT CLASSIFICATIONS CURRENT JANUARY 2014 SAAG 95-5% or 90-10% MATCH (FAA-STATE) FAA AIRPORT IMPROVEMENT PROGRAM • Available to airports approved for Federal funding by FAA (NPIAS Airports) • Limit of 5% or 10% (depending on FAA grant type) of total project cost — Slate share not to exceed $350,000. • FAA federal grant number required and all FAA Grant Assurances apply. • State Grant Application (5% or 10%) reviewed after Project completion and AIP (95% or 90%) paid. SAAG 50-50% MATCH (STATE - LOCAL) • Available to all public owned / public use airports • Limited to 50% of total project cost - State share not to exceed $350,000. • Limit of one 50% grant per airport per fiscal year • Cash and/or In-kind Match required (in-kind requires pre-approval) SAAG 80-20% MATCH (STATE - LOCAL) • Available to all public owned / public use airports • Limited to 800/6 of total project cost - State share not to exceed $350,000. • Limit of one 80% grant per airport per fiscal year • Cash and/or In-kind Match required (in-kind requires pre-approval) SAAG 90-10% MATCH (STATE - LOCAL) • Available to all public owned / public use airports • Limited to 90% of total project cost - State share not to exceed $ 150,000. • Limit of one 900/a grant per airport per fiscal year • Cash and/or In-kind Match required (in-kind requires pre-approval) SAAG 100% GRANT (STATE ONLY) • Available to all public owned / public use airports • Emergency requests only — limited to disaster areas — declared by the Governor • Application must be based on Governor's Disaster Declaration. Insurance payments and other financial help will be reviewed before awarding grant. REMARKS: • All requests submitted must be based on actual need and will be prioritized by StafDCommission. Safety projects being priority N 1 ! • All in kind match requires Pre-Approval NO in-kind on buildings) All buildings funded must certify insurance coverage. • Source of local match funds must be reported on 'The State Application Form' and will be reviewed by Staff& Commission for approval during the Application Process. (Normally local march funding will come from city or county budgets.) • All Insurance, FEMA and other similar funding sources muse be used before Department of Aeronautics Grant Funds. • To comply with FAA Grant Assurances (and State) all revenue generated at or by the Airport must be accounted for and used by the Airport for. improvements and Operations. All Public Owned Airports are expected to make every effort to be self sustaining. REMINDER: •' The FY2014 515,000,000.00 Grant Program is authorized for one ( 1) year, July 2013— June 2014 . The one year Appropriation, set at 515,000,000.00, allows the agency to disburse that amount only if revenue is available. •• State-only funded projects should be started immediately after Commission approval and completed within one year. After Project completion and required documentation is submitted sponsor will be reimbursed for up to the approved grant amount. •• Read application instructions carefully to make sure all required documentation is included in submittal. •• Required payoff documentation includes invoices as well as the front AND back of cancelled checks along with as-built drawings if applicable. ' •' A 50% payment may be requested only after 50% of TOTAL PROJECT is completed. Jasituary, • Director Ray Boudreaux aye evl le Chairman TBD Financial Coordinator James Nicholson exKeases Vice Chair Mike Gibbs Administrative Assistant Lauren Treat Secretary Joshua Mahony Member Rick Bailey Member Bill Corley Member Ken Haxel Member Marty Burggraf Member Darryl Riddell AGENDA Fayetteville Executive Airport Board Meeting 1 :30 p.m., Thursday, January 9, 2014 Terminal Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off all cell phones and pagers I . Welcome. Vice Chairman Mike Gibbs. A. Election of Officers 2. Approval of the Airport Board Minutes of the December 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. Discussion re: Resolution concerning Contract Tower Program B. Advertising Policy for Terminal Lobby 5. New Business. A. Department of Aeronautics Grant Changes 6. Other Business. A. Items from the Airport Board. B. Items from the Public 7. Meeting adjourned. NOTE: Next Airport Board Meeting: February 13, 2014 Strategic Planning Meeting: January 14, 2014 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/governmenVaviation airport—economic—development@ci.fayefteville.ar.us