HomeMy WebLinkAbout2014-06-12 MinutesFAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES
JUNE 129 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.
and seconded by Rick
A motion to
approve the minutes
was made by Bill Corley,
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 21". 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.
4,A9,J�L
Darryl Riddell, Secretary Date