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HomeMy WebLinkAbout2014-05-15 - Agendas - Final I Faye ee Chairman Mike Gibbs Financial Coordinator James Nicholson an.nnsns Vice Chair Josh Mahony Administrative Assistant Lauren Treat Secretary Daryl Riddell Member Rick Bailey Member Bill Corley Member Ken Haxel Member Marty Burggraf AGENDA Fayetteville Executive Airport Board Meeting 1 :30 p.m., Thursday, May 15, 2014 Terminal Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off all cell phones and pagers 1. Welcome. Vice Chair Josh Mahony. 2. Approval of the Airport Board Minutes of the March 13, 2014 meeting. 3. Receiving of Reports. A. Financial Coordinator, James Nicholson. Airport Overview Report and FAA Inspection Review. 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. Bill Corley, Marketing Committee Report. 4. Old Business. A. SkyVenture — New Lease 5. New Business. A. Lighting Efficiency Upgrade Project — Potential Sustainability Improvements at the Airport i. Peter Nierengarten from the City & Byron Ballard from Fleming Electric 6. Other Business. A. Items from the Airport Board. B. Items from the Public. i. Bruce Dunn 7. Meeting adjourned. NOTE: Next Airport Board Meeting: June 12, 2014 Strategic Planning Meeting: 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.org/govemment/aviation airport_economic—development@ci.fayetteville.ar.us FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES March 13, 2014 MEMBERS PRESENT: Darryl Riddell, Josh Mahony, Mike Gibbs, Marty Burggraf, Rick Bailey MEMBERS ABSENT: Ken Haxel, Bill Corley OTHERS PRESENT: Wayne Jones-MCE; James Nicholson-Financial Coordinator; Lauren Treat-Administrative Assistant; Neal Bilbe-City Government Channel; Ray Boudreaux-Airport Director; Terry Gulley-City Transportation; Vince Lesh-USN Retired ITEM #1 : Welcome. Chairman Gibbs. Gibbs presented Boudreaux with a plaque and thanked him for his many years of service to Drake Field. Burggraf presented him with a gift basket. Boudreaux said a few words, as well. ITEM #2: Approval of the Airport Board Minutes of the February 13, 2014 meeting. A motion to approve the minutes with the proposed change was made by Josh Mahony, and seconded by Rick Bailey. The motion carried. ITEM #3 : Receiving of Reports. A. Director Boudreaux, Aviation Director. Boudreaux thanked the airport staff for doing a phenomenal job at snow removal this winter. He mentioned that Greg Robinson of the airport maintenance division did an excellent job keeping up with things, even though he has been the only maintenance worker for months. Boudreaux said that flying activity is good, but sales are low. He recently spoke with Million Air. Though they have not paid what they owe the airport, they do agree that they owe it to us. The airport received permission to apply for an FET but Nicholson was told that we can't have the money for 2013. Boudreaux asked Million Air to apply for the FET and to please return it to us, but he said that he does not know if we will really get that money back. Charter season is going well; basketball season is about to wrap up. Boudreaux mentioned that the roof of South Delta sagged because of the weight of the snow that the doors wouldn't open. He said he is looking into a few options to try to prevent this from happening again. B. Financial Coordinator James Nicholson, Budget Report. Reported the airport did well on operations last month, despite the bad weather. However, the operations are not translated to higher fuel sales. Nicholson said he does not quite know why that is, but we will try to understand the reasoning behind it by communicating with our customers. Nicholson discussed the pie chart breakdown of fuel sales. He discussed contract fuel, our fuel prices, and the airport's margin on sales. Boudreaux mentioned that Colt Aviation is meeting with the airport staff soon. Nicholson discussed how he and the City's internal auditor revamped the financial report, and then he went over the numbers for last month. Nicholson said that he thinks the City-run FBO business has been quite successful in its first year. Boudreaux said the airport will get the $30,000 from Million Air. Nicholson said if we don't receive it directly from Million Air, we' ll ask the DLA to pay us directly. Then the DLA will have to work on getting it back from Million Air. Boudreaux said until they make the payment to us, Tammi at the DLA said they are ineligible to receive any further DLA payments. Nicholson admitted that it was difficult keeping up with all of the new financial records and creating anew system over the past year. Gibbs said he has done a great job. C. Administrative Assistant, Lauren Treat, T-Hangar Report. Reported one hangar is empty with two rented for storage. D. Wayne Jones, McClelland Engineers, Construction Report. Wayne discussed last month's Skidabrador demo. The goal was to find out if the technology would be a viable option in preparation of the concrete. The machine cleans the concrete and improves the friction. It did not damage the joint seals. Nicholson added that the City Council approved a task order for Wayne. This is a future expense, but he hopes it will be 100% paid for by state and federal grants. Wayne said he is waiting on a grant from the FAA. Boudreaux said we will move forward once the money is available and we receive a delegation that we have been awarded the grant. E. Museum Executive Director Warren Jones, Museum Report. Due to unfavorable weather, the museum made very little money. The Falcon even stood up straight for a few days because there was so much ice and snow accumulated on the aircraft. The Commemorative Air Force people came by the other day. The Museum donated some old parts to the CAF and they were very grateful. Warren frequently receives requests for using the museum as a wedding venue. Warren said he is trying to get more events at the Museum. Warren made a recommendation to the board that the Museum is closed during Dec/Jan/Feb because it gets unbelievably cold. The gas bill is huge and the Museum does not make enough money to break even. F. Marketing Committee Chairman Bill Corley, Marketing Report. None. ITEM #4: Old Business. 1 . Capital Improvement Plan: Boudreaux asked if board agrees with the Capital Improvement Plan as it is. All agreed. A motion to send the Capital Improvement Plan as is to the FAA was made by Marty Burggraf, and seconded by Darryl Riddell. The motion carried. 2. Iron Pig: The race will not be held on the runway this year; it will be outside of the fence. Boudreaux invited anyone interested in volunteering to come out that Saturday and help ensure that our customersibusiness tenants in the terminal building can do what they need to do. The first row of parking will be blocked off for SkyVenture/Post Office/etc. ITEM #5: New Business. A. SkyVenture new lease: Boudreaux said the current lease is only valid through the end of April, so now it needs to be renewed. Bailey said he recalls that the last negotiation was somewhat contentious. Gulley believes things are turning around somewhat regarding the airport's relationship with the flight school. Gibbs said at some point, the airport needs to charge them what is considered "normal". Mahony said the Board raised the T Hangar rent rate this year, so it might be time to start an incremental process to get SkyVenture back at an appropriate rate, too. Boudreaux said SkyVenture is important to the airport — they buy fuel, add operations, we gain new pilots this way, etc. Riddell agreed that they are valuable to the airport, but they need to work towards paying the originally negotiated rates. Boudreaux acknowledged that the economy isn't perfect, but it is coming back. Gibbs said SkyVenture has received a lot of concessions. The timing of the increases can be negotiated. More discussion followed. ITEM #6: Other Business. A. Items from the Public. Mauro Campos of the City Fire Department said there will be a CFR 139 live bum with XNA next Tuesday. Boudreaux said he appreciates Campos for working with XNA - it saves our airport a lot of money. Campos said the FAA inspector needs to be aware that there are new personnel at Station 3 and 6. Boudreaux said he anticipates the FAA inspection will be in May. B. Items from the Airport Board. Mahony mentioned Dennis Singleton's recent death. Mahony said he liked Singleton's work at the airport and he will be missed. Boudreaux said the lead maintenance position will be opening up soon and Robinson will be eligible to apply. Riddell said he recently learned about a SWEPCO program that allows small businesses to do energy saving upgrades. Boudreaux said he will run it by the City's sustainability manager before Riddell makes any changes to the South Delta hangar. Boudreaux said the airport will change the runway lights to LEDs once we have the money to do so. Gibbs said he will be gone until June. Mahony will take over until then. MEETING ADJOURNED AT 2:50 P.M. D, j A,$,: Darryl Riddell, Secretary Date CITY OF Fay e evi le ARKANSAS Airport Progress Report TO: Fayetteville Executive Airport Board THRU: Ray M. Boudreaux, Director FROM: James Nicholson, Financial Coordinator DATE: May 15, 2014 Tower rations Cumulative MONTH 2009 2010 2011 2012 2013 2014 MONTH 7009 2010 2011 2812 2013 2014 AN 2,492 1,932 1,917 2,552 2,928 3,147 JAN 2492 1,932 1,917 2552 2978 3,147 FEB 2,902 2,214 1,320 2,138 2,540 3,067 FEB 5,394 4,146 3,237 4,690 5,468 6,214 MAR 2,807 2,418 2,818 2,161 2,889 3,294 MAR 8,201 SUR 6,055 6,851 8357 9,508 APR 2,629 2,775 2,254 2,763 2,687 3,021 APR 10,830 9,339 8,309 9,614 11,044 12,529 MAY 2,722 3,015 2,627 3,180 3,090 MAY 13,552 12,354 10,936 12,794 14,134 JUN 2,876 2,531 2,859 3,195 4,059 JUN 16,428 14,885 13,795 15,985 18,193 JU. 3,100 2,895 2,758 3,050 2,648 JUL 19,528 17,783 16,553 19,039 , A841 AUG 2,868 I 2,513 1 2,6761 2,951 1 2,668 UG 22,396 20,293 19,229 27,990 23,509 SEP 3,577 2,661 3,503 4,864 4,331 SEP 25,973 22,977 22,732 26,851 27,840 OCT 2,877 3,125 2,998 3,320 3,649 OCf 70,650 x,702 25,130 30,174 31,489 NOV Z5B61 1,9641 2,3791 3,3921 2,7941 INOV 1 31,2351 20,OB51 a1091 33,5551 34,283 DEC 1,8421 1,8411 2,1641 Z5461 Z1321 IDEC 1 33.01 29,9D71 30,Z731 X1121 X415 Ma" A%g r 2,757 r 2,492 r 2,523 r 3,009 r 3,035 r 3,132 VMLW Ch9 I 3.64% -9.59%1 1.22%1 19.29%1 0.84% 1345% Estimated YE Total: 42,223 Operations - 12 Month Comparison -2013-2014 -2012-2013 2011-2012 5,500 5,000 4,500 q u 4,000 3,500 0 3,000 c 6 2,500 - = 2,000 1 ,500 1 ,000 MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR Month OPERATIONS Month Average Annual Comparison a TWEL%E MONTH AVERAGE 4,500 4-02d 4,000 3,861 3,403 3,500 2,942 2,939 0 3,000 2,500 1g 2,000 0 1 ,500 1 ,000 500 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Period: May - Apr FBO Fuel Sales Cumulative MONTH 2W9 MID 2DII 2912 2013 2014 MONTH 2009 2DIC 2011 2DI2 2DI3 2DU JAN ®1 ' 35,528 ®t ' ®' .' 29,621 28,385 JAN 36,06235,52835,936 27,865 ®' FEB 43,497 35,466 20,9D9 29,824 32,602 28,078 FEB 79,559 70,994 55,845 57,689 6Z223 55,463 MAR 46,608 41,809 37,333 2B,827 35,761 28,054 MAR 125,167 IIZ803 94,178 K516 97,984 84,517 APR 31,705 3D,763 Z7,611 Z7,085 28,155 23,12D APR 157,0 WAS 121,789 11�0 IM139 107,637 MAY 31,018 26,2D6 29,481 ®-® I18 ®® 143,082 151,274 - M 28,218 27,216 31,6T7 32,961 3D,918 LW 21945 2DI,800 179.M 1MO43 18ZI92 AIL 26,021 26,628 23,892 2B4O6B 24,961 IL 245,247 228,42B 203,564 M4,111 2D7,153 AUG 25,018 25,0111 23,5B51 31,8351 23,568 , IALIG Z70,265 253,439 227,149 235,9461 230,7211 OCT F6 x®: '': ':®': ' � / 11®: WT .4.. 33,7181 32,601 20,7441 30,5W 1 INUV 384,3371 375,553 1 321,3D71 342,1641 339,161 DEC M732 24,470 23,1031 25,157 _ DEC I 03,0M 4111. I 3M,4101 50 ��- 2014 Cumulative Avg Fuel Sales by Percent of Type Fuel Salft by Month 2014 Estimated YE Total: 305,742 f 30 tID 0 HINERAW IODLL �� JAI �� ■I _ r li, , � 1aAsEDjF, x1% 61% ' BAMIDXL106% JAN -i: MAR APR MAY JJN AA. AUG SEP OCT 5D Fuel Sales - 12 Month Comparison 45 40 35 20 is 10 Fr F MAY JUN JUL AUG SEP OCT . Month FUEL SALES Month Average Annual Comparison CITWELVE MOWH AVE 45,000 14i.1498 40,000 38.47235,000 33,236 91.523 -31;655 30.000 25.00020,000C 15,000 - 11.01 ■ ■ 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Fuel Sales - Avera a Mar in Trackin Aril 2014 DATA JET A 100 LL MOLL SS MOGAS TOT ALL AVG COST/GAL 3.9564 5. 1582 5.0592 3.5432 4.2073 GAL SOLD 18087 3567 1399 67 23120 GROSS REV 93518 21108 8113 270 123010 AVG GRS REV/GAL 5. 1705 5.9172 5.8004 4.0390 5.3205 AVG MARGIN/GAL 12141 0.7590 0.7412 0.4958 1 . 1132 TARGET MRGN/GAL 1 .50 1 .25 0.75 0.50 1 .4459 DIFFERENCE 0.2859 0.4910 0.0088 0.0042 0.3327 VARIANCE -19.06% -3928% -1 .17% -0.84% -23.01 % Local Fuel Prices: Fuel prices within 50 miles of FYV as of 5/14/14 Ident FBO Name Jet FS 10OLL FS 110011.11. SS 91 MoGas A $ Jet A S 100E e f loess H34 HurisNille Municipal 4.95 NC TOH City of Tahlequah both selfsery 4.99 4.96 NC NC SLG City of Siloam Springs 5.41 5.65 5.15 NC NC NC ASG Summit Aviation - Springdale 6.05 6.15 5.95 NC 0.16 0.30 VBT Summit Aviation - Bentoriville 6.05 6.15 5.95 0.20 NC NC XNA Regional Jet Center 6.06 6.24 NC NC FSM TACAir 5.90 6.68 0.10 0.06 ROG Beaver Lake Aviation 6.13 6.16 NC NC FW City of Fayetteville 6.17 6.64 5.80 4.04 0.05 0.03 NC Fuel Prices: National 05/14/14 Source: GlobalAir.com Aviation Fuel Current US Fuel Prices s151.lelo Current Fuel Prices & Averages by Region Nmllrousl Wunlam N Equand Gluul Lakes § 5 , 43 8 ;,751, 5 7 © © Buslmn -IRR s' Uunlml VVV § 6 . 05 eo1©o 051. 4 s 130 1MI51mn I'nallc 081©11 '`2 SBL'. tiuumuin Suullrvusl ®®10® § S • § Q Alaska QUI©© C > City of Fayetteville Airport Statement of Revenues, Expenses, and Changes in Fund Net Assets For Month Ended April 30, 2014 Operating Revenues: Airport Services 789,269 Other 3,435 Total Operating Revenues 792,704 Operating Expenses: Personnel Expenses 185,348 Materials and Supplies 405,460 Contract Services and Charges 55, 179 Maintenance 27,102 Total Operating Expenses 673,089 Operating Income (loss) 119,615 Nonoperating Revenues (expenses) Taxes - Stateturnback 3,718 Interest expense and fees (932) Interest income 364 Otherrevenues (expenses) 1,665 Total Nonoperating Revenues (Expenses) 4,815 Change in Net Assets 124,430 Total Net Assets, beginning of year 11,622,698 Total Net Assets, current 11,747,128 City of Fayetteville Airport Balance Sheet Statement of Fund Net Assets As April 30, 2014 Changes April 2014 December 2013 Increase/(Decrease) ASSETS Current Assets: Cash and Cash Equivalents 424,522 278,072 146,450 Accounts Receivable 1670914 850986 810928 Accrued Interest - 243 (243) Due from Other Funds 15,670 6,882 8,788 Due From Other Government 238,859 (238,859) Prepaid Expenses 14,640 140640 - Inventory 680488 73,350 (40862) Capital Assets: Land 31750,133 31750,133 - Buildings 16,871,241 16,870,441 800 Construction in Progress - - - Machinery and Equipment 885,758 885,758 - Non-Building Improvements 1700370435 1700370435 - Accumulated Depreciation (27,621,315) (27,2100749) (410,566) Total Assets 11,614,486 12,031,OS0 (416,564) LIABILITES Current Liabilities Accounts Payable 823 18,319 (170496) Sales Tax Payable - - - Retainages - 25,588 (25,588) Accrued Wages Payable 12,244 12,244 - Accrued Compensated Absences 14,207 14,207 Due to Other Funds 29,381 71,994 (42,613) Noncurrent Liabilities Advance Payable 183,767 186,357 (2,590) Escrow 61718 (61718) Long Term Accrued Comp Absences 54,375 540375 - Deferred Revenue - 18,551 (18,551) Total Liaiblities 294,797 408,352 NET ASSETS Investment in Capital Assets 10,923,251 11,333,017 (4090766) Unrestricted 6990447 289,681 409,766 Current year Rev/exp (303,009) Total Net Assets 11,319,689 11,622,698 (3030009) Target Implementation Date: Second week of August 2014 (In preparation for the back-to-school rush and college football season) DRAKE FIELD CINEMA ROOM UDPATE & MARKETING STRATEGY Goal : Set Drake Field apart from surrounding airports in the NWA Region in order to attract more customers (specifically itinerant jet traffic). We will reposition Drake Field as the premiere "entertainment hotspot" with the best amenities for pilots, crew, and customers traveling in and out of NWA. We propose that the effort put its money towards upgrading and promoting the cinema room . We will achieve this position in the NWA airport market by updating the current equipment in the cinema room, adding new amenities and offering customer incentives for flying in . Additionally, we will advertise the cinema room through online channels and promote it on social media and maybe hold a publicity event such as a ribbon cutting or fly-in . The following points are parts of the cinema room update and marketing strategy. The prices and products listed below are just to give everyone a ballpark idea of the estimated costs. We can search for other prices/products from competing vendors, if necessary. 1 . Updating the Cinema Room a . New TV i . 70" Flat-Screen Television (replacing current 70" Box TV; will put new TV on the current stand/in the existing frame) 1. Vizio LED 1080P, M70ID-ABR 240HZ (Sam's product, #483013) a . $2536.00 w/o City discount 2 . Sharp Aquos 70" 120 HZ (Sam's product, #382393) a . $1764.00 w/o City discount b. Re-arrange furniture c. Netflix account i . $9.00/month : month-to-month, no longterm commitment 2 . Additions to equipment a. Leather couch i. We will move all 5 leather seats down and put a large, leather couch on the top tier of the cinema room. b. 3 end tables i . One in-between the front leather seats directly in front of the TV, and the remaining two on either side of the couch c. XBOX + games + controllers (+ headset?) i. XBOX 360 + Kinect Holiday Bundle + 1 wireless controller, 4GB (Sam's product, #202886) $249 .98 ii . XBOX 360 + 1 controller [without Kinect] (Sam's product, #325694) $179.88 iii. Wireless controller (Sam's product, #409440), $44.88 iv. Game suggestion ideas include : Black Ops, Call of Duty Ghosts, Grand Theft Auto 4, Sniper Elite V2 d. Microwave i . We already have a microwave in the line shack, so this item is not necessary immediately. It would just be nice to have it readily accessible for customers) . ii . $80 - $150 at Office Depot e. Blu-Ray movies i. We currently have a Blu-Ray player but no Blu-Ray movies ii. Dark Knight Series, Transformers Series, Saving Private Ryan, Armageddon, Gravity, etc. f. Charging station i. Cell phones, iPhones, iPad (we will keep the most common cords available for customer use, or customers may use their own) ii. Ottlite Charging Valet Desk Lamp (Office Depot product, #271683) $41.99 * note — price is listed without the City discount iii. Accell Powramid Center + USB Charging (Office Depot product, #633790) $35.00 * note — price is listed without the City discount 3. Other Incentives for flying in a. Free popcorn (& maybe other snacks?) i. ACT II Butter Lover's Box of individual popcorn bags (Sam's product, #567374) $7.28 for 28 bags b. Free coffee & soda fountain (already in place) 4. Online advertising spotlighting our cinema room a. Fltpin .com — cinema icon below our listing b. Airnay.com — banner ads depicting our "movie theater' and/or gaming system 5. Events to Generate Publicity a . Ribbon Cutting event + Fly-In b. Other ideas welcome 6. Social media blasts Why this strategy will work: Drake Field is unique from surrounding airports because it has a cinema room. We should put some money into upgrading the amenities in the cinema room and then strategically market this unique feature. Pilots and crew members are influential regarding where the plane stops for fuel . Pilots and crew members are often faced with long hours stuck at an airport while their customers attend business meetings, ball games, etc. Offering Netflix, Blu-Ray movie options, and a variety of XBOX games to airport customers will give guests something fun to do while at Drake Field . Free popcorn (we already offer free drinks ! ) will complete the "movie theater' feel as well as give the pilots as snack (we no longer have a vending machine). Entertainment and snacks are great incentives that could encourage pilots/crews to fly-in to Drake Field . We can put together some fun online advertisements featuring our cinema that will stand out from competing airport's ads. Participation Rules: All customers will have access to these entertainment amenities os long os they pay the facility fee or purchase fuel. 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J b O a j O m ,S .Q ? {O O 00 J N N m 3 -Z' A � N 3 Springdale Receives Airport Renovation Grant http://www.nwaonline.conVnews/2014/apr/18/springdale-receives-ai... • WAow nine Springdale Receives Airport Renovation Grant By Staff Report Friday, April 18, 2014 ' SPRINGDALE — The path for a new access road to the city airport soon should be cleared. A $150,000 grant from the state Department of Aeronautics will help pay for moving fuel tanks in the path of the new road, said Wyman Morgan, city director of administration and financial services. Keith Tencleave, a project manager for Garver Engineers, announced the grant at a Springdale Airport Commission meeting Thursday. The project will cost $177,594, with the city paying the remainder of the cost. The City Council committed to paying up to $150,000 on the project from its Capital Improvement Program fund, Morgan said. The cost for the city will be $27,594, he said. 'We should start the demo of the old tanks in June and finish installing in July; Tencleave said. The airport has two groupings of tanks holding aviation fuel, which are called fuel farms. The oldest is in the path of a proposed road to the airport terminal. The new road will be built with grants from the Federal Aviation Administration and the Arkansas Department of Aeronautics, Morgan said. The FAA grant will be $750,000, Tencleave said. Bids will be opened in June with construction expected to start in August or September, he said. The new road is needed because traffic at Jones Elementary School, at 900 S. Powell St., can block the entrance to the terminal on Airport Drive. Parents picking up or dropping off their children use Airport Drive to enter the school. NW News on 04/18/2014 _e1 A /11 /IMA id1A DAA