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HomeMy WebLinkAbout2014-08-14 - Agendas - Final ayeTVe Chairman Mike Gibbs Financial Coordinator James Nicholson s Vice Chair Josh Mahony Administrative Assistant Lauren Treat Secretary Darryl Riddell Member Rick Bailey Member Bill Corley Member Ken Haxel Member Marty Burggraf AGENDA Fayetteville Executive Airport Board. Meeting 1 :30 p.m., Thursday, August 14, 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. Chairman Mike Gibbs. 2. Approval of the Airport Board Minutes of the June 12, 2014 meeting. 3. Receiving of Reports. A. Update from Terry Gulley, Director of Transportation. 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. Lighting Efficiency Project Update 5. New Business. A. Approve Submission of Budget 6. Other Business. A. Items from the Airport Board. B. Items from the Public. 7. Meeting adjourned. NOTE: Next Airport Board Meeting: September l 1 , 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/government/aviation airport_economic—development@ci.fayetteville.ar.us FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES JUNE 12, 2014 MEMBERS PRESENT: Darryl Riddell, Marty Burggraf, Rick Bailey Ken Haxel, Bill Corley, Mike Gibbs MEMBERS ABSENT: Josh Mahony OTHERS PRESENT: Wayne Jones-MCE; Zachary Morehart-MCE; James Nicholson- Financial Coordinator; Lauren Treat-Administrative Assistant; Neal Bilbe-City Government Channel; Ray Boudreaux-Airport Director; Terry Gulley-City Transportation; Rick McKinney-T Hangar tenant; Captain Chris Fallen-Fire Department; Craig Young-Tenant; Pat Ross-Ross Executive Aviation ITEM #1 : Welcome. Chairman Gibbs. Thanked McClelland Engineering for hosting the annual airport cookout. ITEM #2: Approval of the Airport Board Minutes of the May 15, 2014 meeting. A motion to approve the minutes was made by Bill Corley, and seconded by Rick Bailey. The motion carried. ITEM #3: Receiving of Reports. A. Update from Transportation Director, Terry Gulley. Gulley discussed the ongoing search for a new director. He said the position might be re- graded since the new director will manage the FBO. The right candidate should be someone with experience running an airport (preferably Part 139) — and possibly in marketing. Gulley mentioned that there was an FOI request from a lawyer in Little Rock. Gulley then discussed rent numbers; Ross Executive Aviation, US Post Office, Loomacres, etc. are all essentially $ 11 +/sq. ft. for their space. Ken Sanders' space is at about $7.50. SkyVenture is currently at about $4/sq. ft. because of a rent recession. The average rent cost in the terminal falls at about $9.60. The lease proposal would only raise SkyVenture's rent to $5 .71 — still putting them at the lowest cost per square foot by over a dollar. The City even leases space to itself at $ 11 /sq. ft. and the FAA leases their building at the airport for $ 14/sq. ft. Gulley said he will offer SkyVenture a lease based on the original plan. He pointed out that Flying Investments has had a long term fuel agreement since 2002; they have the lowest fuel price markup on the field and he will not change it. Gulley discussed the major hangars at Drake Field (Nflight, SkyVenture, U of A). SkyVenture is in the middle of them pricewise. Wings Avionics, South Delta, Superior Industries, etc. are smaller hangars but they are still somewhat comparable. SkyVenture' s hangar rent will not be increased. Only the terminal rent is suggested to be raised by $200.00 This is the same proposal as before. Gibbs said at the last board meeting, the board expressed its support of Gulley' s negotiations so there is nothing further that needs to be said. Haxel said he thinks this is very reasonable. Gibbs agreed. B. Financial Coordinator James Nicholson, Budget Report. Nicholson said operations are still ahead of last year by about 8%, although May 2014 was not quite as good as May 2013 . Gibbs pointed that Northwest Arkansas received a lot of rain this year. Nicholson said that the fuel sales are behind last year. He said FYV has a competitive Jet-A price. Our 100LL full-service gas is the most expensive in the area, but our self-serve is lower than some of the full service 100LL in surrounding areas. Corley asked about the breakdown on AvGas sales by self-serve versus full service. Nicholson said it is about 2/3 full serve and 1 /3 self-serve or 70% to 30%. Boudreaux said the base customers still get a price break on the self-serve. More discussion of AvGas sales breakdown followed. Bailey said he ran into a problem with his AvFuel self- serve card recently. Nicholson said he will inquire about it. Nicholson discussed the financial report and said he hopes to make about $24,000 dollars by the end of the year. However, he admitted that there are a lot of expenses coming up as the year goes on. More discussion of the financial report followed. He mentioned that one of our delinquent tenants, GPS Autotracker, finally paid some money toward his debt after we sent him an eviction notice and changed the lock on his hangar. Nicholson said the tenant wishes to stay here so we will see if he continues making payments towards his debt. Nicholson discussed some of the other delinquent tenants. Discussion about Million Air followed. Nicholson said they are willing to pay $5,000/week for as long as it would take to pay off the remainder of their debt ($30k) to the City. Million Air agreed that they owe us the money but they have had some cash flow issues. Nicholson said we received a picture of the check by fax and MA is overnighting it to us. Gulley said if they don't start sending payments in a timely fashion, the City will put pressure on the DLA to put pressure on Million Air. Nicholson said we have given Million Air more than enough consideration; it is time to pay. C. Administrative Assistant, Lauren Treat, T-Hangar Report. A couple T hangars are currently open. Briefly discussed last month's T Hangar cookout. D. Wayne Jones, McClelland Engineers, Construction Report. Wayne explained that the FAA recently changed some of their guidelines. They want certifications submitted with the application at the beginning rather than after the money has been given out. Nicholson has been getting those certifications signed. Wayne said he will have a formal grant to the City for a signature sometime next week and hopefully the project will be underway by the end of the month. Jones introduced Zach Morehart who initially worked as an intern with McClelland Engineers and he is now working in the aviation division. Gibbs asked about the Lancaster gate on the East Side. Nicholson said there is a problem over there and a contractor is looking at it. E. Museum Executive Director Warren Jones, Museum Report. Boudreaux addressed the Board in Warren' s absence. He said the Museum is hosting about two weddings a month throughout the year. Boudreaux said the Museum is struggling with marketing right now and he encouraged everyone to help spread awareness about "Airport Days" at the Museum on Saturday, June 2151. Gibbs encouraged board members to share event information on their personal Facebook pages. Boudreaux put together a proposal in order to market, promote, and raise funds for the museum. Don Marr said it will go before the budget committee next year. F. Marketing Committee Chairman Bill Corley, Marketing Report. Corley said he and Treat have accumulated some tactical marketing ideas and he thinks it is time for another marketing committee meeting. He extended the invitation to any interested Board members. Corley said he would like to do anecdotal interviews with pilots. He encouraged Haxel to join in the discussion because of his line of work and experience as a pilot. Gibbs said to make sure that the public is notified. Treat will coordinate a meeting. ITEM #4: Old Business. ITEM #5 : New Business. A. Marketing Discussion: Gibbs and Corley agreed the item has been discussed already. There will be a special marketing committee meeting in the near future. ITEM #6: Other Business. A. Items from the Public. None. B. Items from the Airport Board. None. MEETING ADJOURNED AT 2: 12 P.M. ��L A0/ ao 1 �1� �i Darryl Riddell, Secretary Date CITY OF • aye evl ARKANSAS Airport Pro=ross 7WWUV=M TO: Favetteville Executive Airport Board FROM: James Viiuituison,.i irarlciai co4cirtaicr DATE: August 4 4 r' Tower rations Cumulative MONTH 2009 2010 2011 2012 -2013 2014 MONTH 2009 2010 1 2011 1 _ 2012 1 2013 2014 JAN 2,491 1,932 1,917 2,552 2,928 3,147 JAN 2,492 1,932 1,9171 2,5521 2,928 3,147 FEB 2,901 21214 1,320 2,138 2,540 3,067 FEB 51394 41146 3.231 4,6905,468 6,214 MAR, 2,807 4 ' 2,418 2,818 2,161 2,889 3,294 MAR 8,201 6,564 6,0551 6,851 1 8,357 9,508 APR 2,629 2,775 2,254 2,763 2,687 3,021 APR 10,830 9,339 8,3091 9,6141 11,044 12,529 MAY 2,722 3,015 2,677 3,180 3,090 2,744 MAY 13,552 -12,354 10,9361 IZ7941 14,1341 15,273 AJN 2,876 2,531 2,859 3,195 4,059 2,677 JUN 16,428 14,885 13,795 15,989 181193 17,950 AL 3,100 Z8951 2,758 3,050 2,648 2,985 JUL 19,528 17,780 16,553 19,039 20,841 20,935 ALIG 2,868 1 2.5131 2.676 1 2.9511 2.668 1 IALG 1 22,395 20,293 19,229 21,990 23,599 SEP 3,577 2,681 3,503 4,864 4,337 SEP 25,573 22,971 22,132 25,654 27,840 OCT 2,677 3,125 2,998 3,320 3,649 OCT 28,650 1 25,1021 25,733 30,174 31,489 NOV 2,586 1,964 2.379 3,392 2,794 NOV 31,236 28,066 28,1091 33,5661 34,283 DEC 1,842 1$8411 2,1641 2,5461 2,1321 IDEC 1 33,0781 23,907 1 302731 36,1121 36,415 Nord* Ale r 2,757 r $492 r 2,523 r 3,009 r 3,035 r 2,991 Vmd Cly 1 -3.64% -9.599/• 1.M..I 19.299:1 0.840A1 44535 c5uillci6u Yc Tuirii: 30.912 Operations - 12 Month Comparison -zo+3av++ -zmzzon zml.zmz 5,500 5.000 . .................... ....... _._-._._.._ __.______... __........-.--......--------- ._........................ .-....... .__.__-_-_ ______... ....... 4,500 4,000 3,500 2.500 a,000 t,soo t.oW AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Montt) OPERATIONS Month Average Annual Comparison 11T"EL%C 1.ot AVESACaE 4,500 4,000 3.528 3,500 3, 100 3.000 2.945 2,879 3.042 2.500 2.390 2,000 c 1 ,500 z 1,000 500 2004-05 2005-06 2008-07 2007-08 2008-09 2009-10 2010.11 2011-12 2012-13 2013-14 Period: Aug -Jul FBO Fuel Sales Cumulative MONTH 20H 2DID 2DII 2D12 2M3 2D14 MDNTH MOO 2010 2DII 2D12 20113 2014 X062 XWO ��M�x 2',"5 2%621 28,385 AN X0132 3kSO A936 Z71055 2RW A385 FEB 4497 X468 2D,909 29,824 32,602 28,078 FEB 79,559 70,994 K845 57,689 SZZ!3 K463 MAR 46,6W 41,809 37,333 28,827 35,761 28,054 MAR 126,167 IIZBM 94,178 K516 97,9B4 84,517 APR 31,M5 30,763 27,611 Z7,OB5 2B,155 23,12D APR 157,872 143,566 121,789 lIZ601 1MI39 107,637 MAY 33,136 31,018 26,2DS E29,481 25,135 3,915 MAY 191,008 174,584 147,995 14ZCE2 151,274 134,552 AN 28,218 27,216 31,67 3Z961 3D,918 33,425 AN 219,225 20i.80D 179.6n INDO 18ZI92 167,977 AL 26oO21 26,628 23,892 28,068 24,961 24,508 AL 245,247 2X43 203,564 2D4,111 2D7,153 IRZ483 AUG 1 25,0181 25,D11 23,55866 31,8351 23,6681 1" 1 27OZ51 25Z4391 227,1491 2X9161 2X7211 SEP l I/w ����-® CCI .® .< IIB 1. 1 8 ®- OCT 44, I;58 1 W676 ,5371 34,9531 IOCT 1 353,01 341,8651 M.704 313,420 DEC 23,1031 25,1571 14,8501 IDEC 1 413,0891 400,0531 344,4101 267s Estimated YE Total: 332,257 Fuel Sales by Month 2014 2014 Cumulative Avg Fuel Sales by Percent of Type 50 ffIHERW Jul AJEOIO 0 1 30 ■[ 120 �C G- � i � �i �I t8 M 10 USED JET, 35 4% NEW IOOLI t55% 0 1 '. . 1Miss- JAN FEB WAR APR WAY JJN JUL AUG SEP OCT1 DEC 50 Fuel Sales - 12 Month Comparison 201�u �2012-2013 MI�2 45 40 35 30 IS 251 1 20 15 AUG SEP OGT NOV DEC JAN FEB MAR APR MAY JUN JUL Nionth FUEL SALES O�LWWNITHA� E77] Month Average Annual Comparison v iil 1 . 1 44,082 40,000 .00MMoslem 28,746 28,278 1 . 1 20.000 • ■ 1 , 1 ■ ■ 10,000 ■ ■ iil ■ ■ 2004-05 11 1 • 2007-08 20MO9 2009,10 2010-111 1 .J Fuel Sales - Average Margin Tracking JUL 2014 DATA JET A 100 LL 10OLL SS MOGAS TOT ALL AVG COSTIGAL 3. 7636 5. 1227 5.0897 3. 8489 4. 1769 GAL SOLD 16709 5547 1932 318 24506 GROSS REV 83976 35582 11846 1414 132818 AVG GRS REV/GAL 5.0258 6.4141 6. 1329 4.4499 5.4199 AVG MARGIN/GAL 1 .2622 1 .2914 1 .0432 0.6010 1 .2430 TARGET MRGN/GAL 1 .50 1 .25 0.75 0. 50 1 .4459 DIFFERENCE (0.2378) 0.0414 0.2932 0. 1010 (0.2029) VARIANCE -15.85% 3.31 % 39.09% 20.20% -14.03% . . .. .�. . .�. . ..-� + . .. • two vam m f _ 1 i liivu v: ' Gr vi UI 141 1Y Ident FBO Name Jet FS 10OLL FS 10OLL SS 91 MoGas A $ Jet A $ 1001 A $ 100SS H34 Httrtstville Mtaticipal - 5.25 0.30 TOH CgofTa uah thselfserv) 5.23 4.99 NC 0.03 SLG City of Siloam Spr1.s 5 eg 9.A5 �rx r010) _PIL O d0) ASG StrnmltAP;3tio _ c,�.;....y,i� c oq c , c s Ac qtr M n n1 VBT SummitAviation - Bentonville 5.95 6.15 5.44 NC NC NC XNA Re iota) Jti Cei u:•: v.ev v.�-e i•iC flu FSM TAC Air 5.90 6.49 0.11 0.23 ROG Beaver Lake A,&;;-t;,r, ;.16 FYV City ofFayetteville 6.08 6.74 5.90 4A51 0.07 1 (0.32) 1 (0.30) viObalAirxom Aviation Fuel Full Service Current US Fuel Prices 515 719 Current Fuel Prices & Averages by Region O ufrigpim Northwest Mauritian N'"'" Engla nt! Graal Lakes 55 5 , 9 6 X55 , 63 • '0 ¢ @ , 54 ® • 0 Eastern ®Q�®� � 5 • Zr Can6al 16108 IIID© $ 5 , 50. 0 Abstain {•aclllc IBM Southern Southwest $ 5 . 9 0 Alaska § Z . o4 HIM 0 Actual Budget 2014 Year to Date Year to Date Administration and Maintenance Revenues Rents 353,794 337,704 Miscellaneous 70391 5,294 Sales Tax Revenue 81941 18,000 Other Total Revenues 370,126 360,998 Expenses Salaries 164,742 208,539 Materials and Supplies 81811 12,122 Services/Charges 74,969 135,704 Cost Allocation to General Fund 41620 41620 Principal Payment Allocation 61475 9,065 Interest on Hangar Loan 2,330 3,262 Maintenance 42,243 42,381 Total Expenses 304, 191 415,693 Net Income (Loss) from Admin/Maint 65,936 (54,695) FBO Revenues and Expenses Revenues Rent - FBO Hangars 81295 15,880 Aviation Fuel 955,408 1,051,501 Accessories 34,509 14,581 Total Revenues 998,211 11081,962 Expenses Salaries 137,712 151,479 Materials and Supplies 61390 13,099 Inventory - Aviation Fuel 697,574 724,995 Services/Charges 40,812 91,497 Cost Allocation to General Fund - %723 Maintenance 12,102 12,012 Total Expenses 894,591 11002,805 Net Income (Loss) from FBO 103,620 79,157 Other Revenues Investment Interest 1,391 1,050 Grants 5,055 5,055 Total Revenues 6,446 6,105 Expenses FBO Startup/Ground Service Equipmen 25,604 Hangar Office Addition 800 Total Expenses 26,404 (19,958) 61105 Total Net Income (Loss) 149,598 300567 City of Fayetteville Airport Cash Projections For Month Ended July 31, 2014 Current Cash and Receipts Cash 411,145.77 Accounts Receivable 232,455.34 Due from Others 26,671. 10 Total Current Cash and Receipts $ 670,272 .21 Current Amounts Owed Accounts Payable 57, 130.01 Sales Tax Payable - Retainages Payable Wages Payable 26,450.99 Due to others (17,956.25) Total Current Amounts Owed $ 65,624.75 Current Amounts Due less Amounts Owed $ 604,647.46 Future Receipts DOT/FAA Grant - Terminal Apron Rehab Proj 32,445.00 State Grant - Terminal Apron Rehab Project 3,605.00 Total Future Receipts $ 36,050.00 Future Expenses Security System Upgrade 7,904.00 Terminal Apron Rehab (FAA/AIP Grant Proj) 36,050.00 FAA Facilities Building - Replace Flooring 81000.85 Remainder of Hangar Loan Principal 179,882.00 Total Future Expenses $ 231,836.85 Future Receipts Less Future Expenses $ (195,786.85) Total Current and Future Amounts $ 408,860.61 City of Fayetteville Airport Balance Sheet Statement of Fund Net Assets As of July 31, 2014 Changes July 2014 December 2013 Increase/(Decrease) ASSETS Current Assets: Cash and Cash Equivalents 411,146 2780072 133,073 Accounts Receivable 2320455 85,986 1460469 Accrued Interest - 243 (243) Due from Other Funds 26,671 6,882 19,789 Due From Other Government - 238,859 (2380859) Prepaid Expenses 140640 14,640 - Inventory 76,633 730350 30282 Capital Assets: Land 3,7501133 30750, 133 - Buildings 16,871,241 160870,441 800 Construction in Progress - - - Machinery and Equipment 885,758 885,758 - Non-Building Improvements 17,037,435 17,037,435 - Accumulated Depreciation (27,914,884) (270210,749) (7040135) Total Assets 11,391,228 12,031,050 (639,822) LIABILITES Current Liabilities Accounts Payable 57,130 18,319 38,811 Sales Tax Payable - - - Retainages - 250588 (25,588) Accrued Wages Payable 12,244 120244 - Accrued Compensated Absences 14,207 14,207 - Due to Other Funds (170956) 71,994 (89,950) Noncurrent Liabilities Advance Payable 1790882 186,357 (60475) Escrow 6,926 6,718 208 Long Term Accrued Comp Absences 54,375 54,375 - Deferred Revenue - 18,551 (18,551) Total Liaiblities 306,807 4080352 NET ASSETS Investment in Capital Assets 10,6290682 11,333,017 (703,335) Unrestricted 993,016 2890681 703,335 Current year Rev/exp (538,278) Total Net Assets 11,084,420 1106220698 (538,278) Liabilities + Net Assets 11,3910228 12,0310050 City of Fayetteville Airport Statement of Revenues, Expenses, and Changes in Fund Net Assets For Month Ended July 31, 2014 Operating Revenues: Airport Services 11352,006 Other 71391 Total Operating Revenues 1,359,396 Operating Expenses: Personnel Expenses 302,454 Materials and Supplies 712,776 Contract Services and Charges 120,401 Maintenance 54,346 Total Operating Expenses 1, 189,976 Operating Income ( loss) 169,420 Nonoperating Revenues (expenses) Taxes - Stateturnback 8,941 Interest expense and fees (21330) Interest income 1,391 Other revenues (expenses) (27,824) Total Nonoperating Revenues (Expenses) ( 19,822) Change in Net Assets 149,598 Total Net Assets, beginning of year 11,6221698 Total Net Assets, current 11,772,296 m Foo 3m mwm � > > ommmmmro C o -no o � o ym W � Wm < < mmmmm -z40v mD - < = 0 mQc m u, OKOmd d c m m > ' = mm o- m < m .D m ,7 7Jc > 0cf) o 'addd � mo CD OO o m DN) m ? 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N 0 N d N N N d C < G m H O C C y m N N N N N y O O N a m m w H d m to to m w d d d d d N N N 0 p^ 2 m d 0 w N N N m J £ m 3 3 = D m m m x £ N p O m J d d G < a c > > 3 N N m J N i 4 M I Y ARKANSAS DEPARTMENT OF AERONAUTICS 2315 Crisp Drive Hangar 8 I Little Rock, Arkansas 72202 Telephone: (501) 376-6781 PRESS RELEASE FOR IMMEDIATE RELEASE August 13, 2014 i Arkansas Department of Aeronautics Director John Knight announced his retirement effective September 1, 2014, after 27 years of serving the agency and the State of Arkansas. After serving the agency as Assistant Director under the Clinton administration, Knight was appointed to the position of Director in December 1992 by then Governor Jim Guy Tucker. He previously worked in the private sector before his tenure with the agency and has been active in civic work, volunteer services, and his church for many years. I The Arkansas Department of Aeronautics is responsible for the overall Arkansas Aviation System Plan and works closely with local governments to ensure maximum funding for all items related to safety and economic development together with upgrades and maintenance for the 91 public-owned/public-use airports in Arkansas. The agency also works closely with the Federal Aviation Administration and various statewide pilot groups and aviation organizations to increase safety awareness for all aviation users in Arkansas. Under Knight's leadership, the agency has undertaken initiatives to enhance economic growth at the state's public-owned airports, to establish a safe operating environment for the aviation community in Arkansas, and to emphasize accessible and efficient state government. Since 1992, the agency and its Commissioners have approved and disbursed over $143,539,432 in grant aid to airports throughout the state. This amount has translated into a total economic impact of over $3 billion throughout the state of Arkansas. Knight was born in Vicksburg, Mississippi on December 5, 1940. He graduated from Star City High School and attended the University of Arkansas at Monticello, and currently resides in 'Arkadelphia, Arkansas. He has been married to Rose Thornton Knight since 1960. They have two sons--Tim Knight, Ph. D. and Dean of the Patterson School of Natural Sciences at Ouachita Baptist University, and Todd Knight, Head Football Coach at Ouachita Baptist University--and five grandchildren. Upon notice of Knight's retirement, Chairman Clark Mason stated, "On behalf of the Commission, state aviation organizations, and airports, we appreciate John's dedication, commitment, and time he has given to us so we may move forward as a state agency in the I same, successful manner as it has been for over 20 years." After Knight's announcement, the agency's Commissioners unanimously recommended Jerry Chism to serve as interim director effective September 1, 2014. Chism has served as Assistant Director since January 2004. I I