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HomeMy WebLinkAbout2014-10-09 - Agendas - Final • aye evl e Chairman Mike Gibbs Financial Coordinator lames Nicholson nnKn Hsns 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, October 9, 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. Chairman Mike Gibbs. 2. Approval of the Airport Board Minutes of the September 11 , 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, Design Report. E. Museum Executive Director Warren Jones, Museum Report. F. Bill Corley, Marketing Committee Report. 4. Old Business. 5. New Business. 6. Other Business. A. Items from the Airport Board. B. Items from the Public. 7. Meeting adjourned. NOTE: Next Airport Board Meeting: November 13, 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 September 11, 2014 MEMBERS PRESENT: Darryl Riddell, Rick Bailey, Bill Corley, Mike Gibbs MEMBERS ABSENT: Josh Mahony, Ken Haxel OTHERS PRESENT: Wayne Jones-MCE; Zachary Morehart-MCE; James Nicholson- Financial Coordinator; Lauren Treat-Administrative Assistant; Neal Bilbe-City Government Channel; Ray Boudreaux-Former Airport Director; Terry Gulley-City Transportation; Roderick Lee; Daniel Barnes-MCE; Mauro Campos-City Fire Dept. ; Robert Beare-Airport Maintenance ITEM #1 : Welcome. Chairman Gibbs. ITEM #2 : Approval of the Airport Board Minutes of the August 14, 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 said Nicholson found three bids on terminal space assessments; an individual has been chosen to do the assessment for $4,000. Gulley said this assessment will be completed before he finalizes anything with SkyVenture. He said the lease is now moved up to start at the beginning of the next calendar year. Gulley hopes the comprehensive report from an outside agency will give us more leverage in what we should charge for the space. Gibbs asked when Gulley hopes to have someone hired as airport director. Gulley said he wanted to have someone months ago, but it didn' t go that way. The first time around there were 23 applicants. Gulley's first choice candidate wanted more money than the job was listed for, then the next best candidate withdrew, etc. - so after revamping the job description a second time, we have had about 13 applicants. Gulley is looking for airport and marketing experience. He said if the person he is interviewing the following day doesn't work out, Don Marr (City Chief of Staff) and Gulley might change the qualifications again in order to find a suitable candidate. More discussion followed. B. Financial Coordinator James Nicholson, Budget Report. Reported that August was one . of the best months in 2014. Operations were better compared to previous years. Fuel sales were also up a little bit from the previous years, however they still lag behind operations. He mentioned that September is usually our busiest month, so he hopes we will have more good numbers in our next report. Nicholson briefly discussed Game Day and thanked Neal Bilbe (videographer) and Bailey for volunteering that day. The fuel prices at Drake Field are still slightly above what other airports are charging. Nicholson said we might consider adjusting our retail margin in order to look better in comparison to our competitors. Right now, fuel prices look higher than they actually are. Corley agreed that would be a good idea. Nicholson said that we could correlate our market price with our actual price, but this means the prices will have to be calculated differently. Nicholson said he would fiddle around with the numbers and present his findings at the next meeting. Discussion of the financial report followed. Nicholson said overall, the FBO is performing quite well and it would be wise to continue running the FBO. It is a reliable source of income and we are able to operate it the way it needs to be operated in order to be successful. Gulley commended Nicholson for budgeting last year on only 2 or 3 months of data. The airport is covering more expenses and making more revenue now than when Million Air was here. These numbers are great compared to what we were struggling with two or three years ago. Gibbs asked if the airport has received another check from Million Air. Nicholson said that he received one early today. Nicholson briefly discussed the outstanding invoices list and said there was nothing to be alarmed about. C. Administrative Assistant, Lauren Treat, T-Hangar Report. Three T Hangars are open ( 1 twin, 2 singles.) D. Wayne Jones, McClelland Engineers, Construction Report. Daniel Barnes of MCE passed out a preliminary engineering report for the terminal apron rehabilitation project. Wayne said the apron is 34 years old. Structurally, it is in good shape but there are some aesthetic/cosmetic issues with a number of the concreated joints where there is surface deterioration and pop outs. He said the two best options are probably the Delpatch by D.S. Brown or the TechCrete by Crafco. Both of these products can be opened back to traffic quickly; Delpatch in one hour, TechCrete in 2-3 hours depending on depth. Wayne discussed surface treatment options including Endurablend by pavement surface coatings and Grip-Flex surfacing by Ameriseal . Wayne recommended to proceed with the Grip-Flex treatment, but he is still gathering bids from Endurablend. Wayne said he would be willing to go over to Newport with members of the board to take a look at it on their airport. More discussion followed of the proposed options. Boudreaux asked if there is an opportunity to get additional monies. Wayne said sometimes there is, but he hasn't had a chance to get this information to Paul Burns (FAA) yet. Wayne said this project might need to be in two phases to cover all of the costs. Boudreaux asked if the taxiway will need repairs. Wayne said there are mostly just cracks that need to be sealed; there are no pop outs like on the apron. Wayne said we will get this project to the FAA through Nicholson. Gulley said he would like to look at the other airports and see what the options look like in person. Wayne agreed. E. Museum Executive Director Warren Jones, Museum Report. In Warren' s absence, Boudreaux briefed the Board. He said the CAF B-29 and Stearman coming in for Bikes Blues and BBQ. There are a lot of events going on at the Museum right now. Airport Day was very successful, though it will not be held this month because of BBBBQ. Boudreaux mentioned that the Museum will sell some assets that are no longer need such as extra uniforms, books, etc. starting on the Thursday of BBBBQ. Collectors have been notified and they will pay an early fee to come look at the stuff before the sale begins. Boudreaux said that Warren will be gone by the end of October. There is not enough money to hire another person to do the work Warren has been doing, but Boudreaux said he and the Museum volunteers will do their best. F. Marketing Committee Chairman Bill Corley, Marketing Report. Corley said there has not been a reconnect since the last board meeting because there is not a current acute problem or compelling issue that needs to be addressed. Corley proposed that the airport spends five hundred dollars to work with a marketing professional to gain fresh ideas. Gulley said he is fine with that. A motion to spend five hundred dollars for professional marketing advice was made by Rick Bailey, and seconded by Marty Burgraff. Motion carried. ITEM #4: Old Business. None. ITEM 45: New Business. None. ITEM #6: Other Business. A. Items from the Public. None. B. Items from the Airport Board. Gibbs thanked Riddell for flying himself and Mahony to John Knight' s retirement. Gibbs gave the board members a copy of the City Ordinance regarding the Airport Board as a reminder of what their duties are. Bailey commended our maintenance guys for the work they did on replacing lights and hangar doors recently. Robert Beare said he is trying to piece everything together. Gulley said there were a few maintenance issues brought up at the last meeting; all of those things have been completed. He thanked everyone for bringing up their concerns. It helps the airport staff to address the issues quicker. MEETING ADJOURNED AT 2 :44 P.M. OaU.t1l I YZC� JXAa4 Darryl Riddell, Secretary Date CITY OF 7ay e evi le ARKANSAS Airport Progress Report TO: Fayetteville Executive Airport Board FROM: James Nicholson, Financial Coordinator DATE: October 9, 2014 Tower rations Cumulative MONTH 2009 2010 2017 2012 2013 2014 MONTH 20M 2010 2D11 2012 2013 2014 JAN 2,492 1,932 11917 2,552 2,928 3,147 JAN 2,492 1,932 1,917. 2,552 2,928 31147 FEB 2,902 2,214 1,320 2,138 2,540 3,067 FEB 5,394 4,146 3,237 4,69D 5,468 6,214 MAR 2,807 2,418 2,818 2,161 2,889 3,294 MAR 8,201 6,564 6,055 8,851 8,357 9,508 APR 2,829 . 2,775 $254 2,783 2,687 3,021 APR 10,830 9,339 4309 9,614 11,044 12,529 MAY 2,722 3,015 2,621 3,180 3,090 2,744 MAY 13,552 12,354 10,936 12,794 14,134 15,273 JUN 2,878 2,531 2,859 3,195 4,059 2,677 AN 16,478 14,885 13,795 - 15,989 18,193 17,950 AL 3,100 2,895 2,758 3,050 2,648 2,901 AL 19,578 171780 16,553 19,039 M841 2Q835 AUG 2,8681 Z5131 2,678 I $951 1 2,6681 3,539 ALIG 22,396 20,293 19,229 21,990 23509 24,474 SEP 1577 2,681 3,503 4,884 4,331 4,281 BEP 25,973 72,977 71,732 28,854 27,840 28,755 OCT 2,877 3,125 2998 3,320 3,649 ON 28,660 7$102 75,730 30174 31,489 NOV 2,588 1 1,%41 2,379 1 3,392 1 2,791 I INUV I 31,236 I 7$096 I A1091 33,568 I 31,283 DEC 1,8421 11841 2,1641 2,548 I 2,132 OEC I A078 I 29,9U71 30,273 38,112 36,415 Ma" A 2,757 r 2,492 r 2,523 r 3,009 r 3,035 r 3,195 Paw Chp I aeol aBq%I 1.22%1 19.29%1 0.84% 329% Estimated YE Total: 37,711 Operations - 12 Month Comparison -x,>•mu -mn.m,2 N11. 12 5,500 5,000 p 4,500 S 4,000 3,500 ZN 3,ODO g 2.500 2.000 1 ,500 1,000 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Month OPERATIONS Month Average Annual Comparison �rraua ucnTM .Knave 5.000 4,500 4322 4,000 3,500 2,971 2.940 3,000 2.840 2.808 2,507 2,472 2,500 $ 2,000 Zd 1 ,500 1 ,000 500 2004-05 2005-06 2008-07 2007-08 2008-09 2009-10 2010.11 2011-12 2012-13 2013-14 Period: Oct - Sep . . II ®� '1 :t ��� F J 'LYl•����� 1 :t • Y INC I no I I i 1111 � 111oil � 1 ME lall go 1 t' VON U:q 1111 1111 ■ __ __ -_ __ __ __ 111 ■ ■ 1 I11 ■ ■ 11 1 11 114 1 11 1 : 11 : 1 11 • 1 1 1 1 1 1 Fuel Sales - Avera a Margin Tracking SEP 2014 DATA JET A 100 LL 1001.1. SS MOGAS TOT ALL AVG COST/GAL 3.7373 5.2199 5. 1612 3.7458 4.0855 GAL SOLD 23740 6032 1445 382 31598 GROSS REV 120258 37822 8350 1603 168033 AVG GRS REV/GAL 5.0656 6.2707 5.7783 4. 1996 5.3178 AVG MARGIWGAL 1 .3284 1 .0508 0.6171 0.4538 1 .2323 TARGET MRGN/GAL 1 .50 1 .25 0.75 0.50 1 .4459 DIFFERENCE (0. 1716) (0. 1992) (0. 1329) (0.0462) (0.2136) VARIANCE 1 -11 .44% -15.93% -17.72% -9.24% -14.77% Local Fuel Prices: Fuel prices within 50 miles of FW as of 10/9/14 Ident FSO Name Jet FS t00LL FS 10OLL SS 91 MoGas A $ Jet n $ 1001.1 e $ +DOSS H34 Hlmstville Municipal 5.25 NC TOH City ofTaHequah (both seBserv) 5.00 5.23 NC NC SLG City of Siloam Sp 5.45 5.70 5.10 NC 0.05 0.05 VBT Summit Aviation - Bentonville 5.85 6.05 5.44 NC (0.10) NC XNA Regional Jet Center 5.85 6.24 (0.21 ) NC FSM TAC Air 5.89 6.49 (0.01 ) NC ROG Beaver Lake Aviation 5.91 6.11 NC NC ASG Summit Aviation - Springdale 5.94 6.05 5.35 (0.01) (0.10) (0.09) FYV City of Fayetteville 5.94 6.76 5.90 4.20 (0.16) 0.18 0.15 Fuel Prices: National 1019/14 Source: GlobalAir.com Aviation Fuel Full Service Current US Fuel Prices MRS 71z Current Fuel Prices & Averages by Region Norlhwusl Wunluhr No England - Gical Lukas 15 , 72 $ 5 , 471 Q Q �01DD tuslurn $ 5 , 67 Con'bal $ 6 , 8155 $ 5 col©® , 40 a® n VW510111 Paubc ©ells $ 5 , 5 � Soulhom SOullrvrusl villa $aim nn4 Iii im Alaska $ 8 , 93 E�1®® C7 City of Fayetteville Airport Balance Sheet Statement of Fund Net Assets As of September 30, 2014 September 2014 December 2013 ASSETS Current Assets: Cash and Cash Equivalents 472,089 278,072 Accounts Receivable 197, 148 85,986 Accrued Interest - 243 Due from Other Funds 10,871 6,882 Due From Other Government - 238,859 Prepaid Expenses 14,640 14,640 Inventory 132,354 73,350 Capital Assets: Land 3,750,133 30750J33 Buildings 16,871,241 16,870,441 Construction in Progress - - Machinery and Equipment 885,758 885,758 Non-Building Improvements 17,037,435 17,037,435 Accumulated Depreciation (28, 149,057) (27,2101749) Total Assets 11,222,610 12,031,050 LIABILITES Current Liabilities Accounts Payable 20093 18,319 Sales Tax Payable - - Retainages - 25,588 Accrued Wages Payable 12,244 12,244 Accrued Compensated Absences 14,207 14,207 Due to Other Funds ( 16,881) 71,994 Noncurrent Liabilities Advance Payable 175,997 186,357 Escrow 6,926 6,718 Long Term Accrued Comp Absences 54,375 54,375 Deferred Revenue - 18,551 Total Liaiblities 2481961 408,352 NET ASSETS Investment in Capital Assets 10,395,509 111333,017 Unrestricted 11227,189 289,681 Current year Rev/exp (649,048) Total Net Assets 10,973,650 11,622,698 Liabilities + Net Assets 11,222,610 12,0311050 City of Fayetteville Airport Statement of Revenues, Expenses, and Changes in Fund Net Assets For Month Ended September 30, 2014 Operating Revenues: Airport Services 1,7411155 Other 8,052 Total Operating Revenues 1,749,207 Operating Expenses: Personnel Expenses 374,505 Materials and Supplies 81%798 Contract Services and Charges 167,123 Maintenance 84,382 Total Operating Expenses 1,445,807 Operating Income ( loss) 303,400 Nonoperating Revenues (expenses) Taxes - Stateturnback 13,048 Interest expense and fees (3728) Interest income 11685 Other revenues (expenses) (47,600) Total Nonoperating Revenues ( Expenses) (36,595) Change in Net Assets 266,804 Total Net Assets, beginning of year 11,622,698 Total Net Assets, current 11,889,503 City of Fayetteville Airport Operating Analysis For Month Ended September 30, 2014 Actual Budget 2014 2014 Year to Date Year to Date Budget Administration and Maintenance Revenues Rents 445,076 443,618 514,700 Miscellaneous 8,052 6,378 8,000 Sales Tax Revenue 13,048 21,900 32,000 Other - Total Revenues 466,177 471,896 554,700 Expenses Salaries 1970996 254,332 346,749 Materials and Supplies 110318 15,764 21,110 Services/Charges 105,755 186,494 246,812 Cost Allocation to General Fund 5,938 5,940 7,915 Principal Payment Allocation 10,360 10,360 150530 Interest on Hangar Loan 31728 4,194 5,591 Maintenance 68,355 54,713 74,089 Total Expenses 403,451 531,797 717,796 Net Income (Loss) from Admin/Maint 62,726 (59,901) (163,096) FBO Revenues and Expenses Revenues Rent - FBO Hangars 81295 17,865 24,000 Aviation Fuel 11246,353 1,367,087 11867,500 Accessories 41,430 18,747 25,000 Total Revenues 1,2960078 1,403,699 1,916,500 Expenses Salaries 176,509 197,274 261,878 Materials and Supplies 10,344 15,587 19,511 Inventory - Aviation Fuel 798,136 943,891 1,272,226 Services/Charges 55,429 120,979 145,341 Cost Allocation to General Fund - 12,501 16,667 Maintenance 16,027 14,744 15,800 Total Expenses 1,056,444 1,304,976 1,731,423 Net Income (Loss) from FBO 239,634 98,723 185,077 Other Revenues Investment Interest 1,685 1,350 1,800 Grants 5,055 41,105 - Total Revenues 6,740 42,455 1,800 Expenses Hangar Office Addition 800 800 - ARFF Protective Clothing 28,789 31,000 - Terminal Apron Rehab 12,707 30,050 Total Expenses 42,295 61,850 - (35,556) (19,395) 1,800 Total Net Income (Loss) 266,804 19,427 23,781