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HomeMy WebLinkAbout2015-01-15 - Agendas - Final Airport Director Johnny Roscoe Faye evAle Financial Coordinator James Nicholson nnKn visas Vice Chair Josh Mabony Administrative Assistant Lauren Treat Secretary Darryl Riddell Member Rick Bailey Member Bill Corley Member Ken Haxel Member Marty Burggraf Member Avon Haury AGENDA Fayetteville Executive Airport Board Meeting 1 :30 a.m., Thursday, January 15, 2015 Terminal Conference Room, 4500 S. School Avenue City of Fayetteville, Arkansas As a courtesy please turn off all cell phones and pagers 1 . Welcome, Director Johnny Roscoe. Introduction of Avon Haury. Elect New Officers. 2. Approval of the Airport Board Minutes of the December 11 , 2014 meeting. 3. Receiving of Reports. A. Airport Director Johnny Roscoe, Director's Report. 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 Ray Boudreaux, Museum Report. F. Bill Corley, Marketing Committee Report. 4. Old Business. 5. New Business. A. Grant Assurances. B. Appraisal Assessment Discussion. C. Airfield Access. 6. Other Business. A. Items from the Airport Board. B. Items from the Public. 7. Meeting adjourned. NOTE: Next Airport Board Meeting: February 12, 2015 Strategic Planoing Meeting: 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642 • 479.718.7646 FAX , w .accessfayetteville.org/government/aviation airport—economic—development@ci.fayetteville.ar.us FAYETTEVILLE EXECUTIVE AIRPORT BOARD MINUTES December 11, 2104 MEMBERS PRESENT: Darryl Riddell, Bill Corley, Mike Gibbs, Josh Mahony MEMBERS ABSENT: Ken Haxel, Marty Burggraf, Rick Bailey OTHERS PRESENT: Wayne Jones-MCE; Zachary Morehart-MCE; Daniel Barnes- MCE; James Nicholson-Financial Coordinator; Lauren Treat-Administrative Assistant; Neal Bilbe-City Government Channel; Ray Boudreaux-Former Airport Director; Terry Gulley-City Transportation; Daniel Barnes-MCE; Johnny Roscoe-Airport Director; Hugh Hyde ITEM #1 : Welcome. Chairman Gibbs. ITEM #2: Approval of the Airport Board Minutes of the November 13. 2014 meeting. A motion to approve the minutes was made by Bill Corley, and seconded by Josh Mahony. The motion carried. ITEM #3: Receiving of Reports. A. Director's Report by Johnny Roscoe. Roscoe thanked everyone for their support over the past month. Reported that November was an average month and we did make a profit, however we are slightly downs in fuel sales. Discussed airport safety and the importance of securing the AMA. He also discussed the security agreements that are currently being given out to the tenants, contractors, museum volunteers, and even transients. Roscoe also brought up the amount of trash, brush, etc. piling up inside of the fence line of the airport. Roscoe said he will conduct a free, one-time big pick up airport-wide. He also discussed the areas that we might be in violation for charging aviation rent prices for spaces being used for non- aviation purposes. Gulley said that a pricing strategy is being looked into with an assessor. The items that are allowed to be stored in the T hangars was also discussed. Roscoe said he talked to the FAA and they are willing to work with us on what is allowed in the hangars. Roscoe said he will discuss these items more in detail in January. B. Financial Coordinator James Nicholson, Budget Report. Nicholson thanked Chairman Gibbs for the time he spent on the Airport Board. Reported that operations are almost identical to last November. Nicholson said that football season, which is typically our biggest time of the year, was not the best. There was bad weather nearly every game and we had a lot of cancellations. Nicholson said that it did effect our fuel sales to some degree, as well. Nicholson said that we are getting more competitive with our prices but we do have to maintain a certain level of margins. Discussion of the financial report followed. The FBO did very well this year. Nicholson said that increasing the margins on our contract fuel early in the year helped substantially. Gibbs asked if the airport administrative/maintenance side of things will be able to break even next year? Nicholson said yes, it is a positive number in next year's budget and prediction. Roscoe also mentioned that weather permitting, the football games next year should bring in more traffic and we should earn more money. The FBO should help cover us across the board and put more money in the reserve fund. Gibbs said we have done great this year and he has no complaints. He thinks we have done a super job over the last few years in managing this — even during the rough years we still squeaked by in the black. C. Administrative Assistant, Lauren Treat, T-Hangar Report. One single T hangar is open. D. Wayne Jones, McClelland Engineers, Design Report. Barnes discussed the option of milling it off and putting a new surface on top. He will be in contact with the FAA and Mr. Roscoe very soon. E. Museum Executive Director Warren Jones, Museum Report. Boudreaux said the annual Museum meeting is Sunday at 1 PM. New board members will be elected. He said there are a few new projects in the works for next year and any volunteers are appreciated. F. Marketing Committee Chairman Bill Corley, Marketing Report. He said that he will address it in the new business section. ITEM #4: Old Business. None. ITEM #5: New Business. A. Brand Experience Concept. Corley said that the marketing committee and Gott brainstormed, etc. and the committee decided to take the marketing thing to a new level. We want to take it from messaging and selling jet fuel, etc. but we also want to communicate brand value. Corley said they do not need anything approved today; we just want to initiate a discussion and get the Board and Gulley' s consensus on the ideas. Gott discussed the brand experience of the airport in terms of services, spaces, and products. He discussed the potential revenue streams such as pilots, big business, entrepreneurs, adventurers, and the community. The first big idea is positioning the airport and surrounding area as the "adventure gateway" to Northwest Arkansas. This would be leveraging the outdoorsy-ness that is already happening in Fayetteville. We could invite Gaston' s, Lewis & Clark, Pack Rat, Cabela' s, etc. to set up a display in the terminal. We want to tell the "adventure story" on the inside of the airport as soon as our customers land. This would create an experience as customers walk through the building. Gibbs also mentioned that the Green Way will be complete soon; the airport is very near the end of the bike trail. Someone could fly here and ride the bike trail from end to end. Corley also said 71 S is basically a bike trail for road bikers. Hugh Hyde said there was an airport with a taxidermist in the terminal in South Dakota. People handed their game to him as they got back on the plane. Next idea is leveraging the business that already goes through here such as executives, people from the U of A, and younger people with startup businesses. The idea is to combine the idea of big business with the "startup" mentality. Some of the unused space in the terminal would be converted into small offices or co-working space. Gott said there is not a lot of this kind of space in NWA. Most offices are hyper developed and expensive. It would be good to have something like a coffee shop here, too. An investor would be needed. Corley asked the board members to consider these ideas. Each of these ideas will entail potential challenges, but they are worth thinking about. Gulley said he liked both of the ideas. He said he is unsure where to start looking for an investor, but he does like the mountain idea — especially with Mt. Kessler being developed nearby. He thinks the outdoorsy concept would draw attention, but he does recognize that we have a lot of wasted space in the terminal. This would be a cool place to have a meeting or even build an observation deck. Gibbs said it would be great to incorporate something like an observation deck into the plan. Gibbs asked for a consensus from the Board. A motion to explore the ideas presented and see where they lead the Board was made by Mahony. Riddell seconded it. Motion passes. Corley thanked Gott. ITEM 96: Other Business. A. Items from the Public. None. B. Items from the Airport Board. Gibbs introduced Hugh Hyde who is interested in applying for the Airport Board. Roscoe presented a certificate of appreciation for his Gibb's time and service to Fayetteville Executive Airport. MEETING ADJOURNED AT 2:43 P.M. Al UZ Darryl Riddell, Secretary Date THE CITY OF FAYETTEVILLE, ARKANSAS TayetedeAVIATION DIVISIONSte 45005 School Ave, Ste F Fayetteville, AR 72701 ARKANSAS P (479) 718-7642 DIRECTOR' S MONTHLY REPORT December, 2014 FAYETTEVILLE EXECUTIVE AIRPORT, DRAKE FIELD January 15th, 2015 • AIRPORT ACTIVITY: December fuel sales and airport operation numbers were down a little compared to November but were comparable to December of last year. Even though we sold about 1800 gallons less, our final analysis for 2014 showed we sold $ 1 . 7M dollars of fuel vs $ 1 .3M the previous year. Overall, a very good year ! • HANGARS FOR RENT: We are finally full and have a request for one more ! We must ask a storage-only tenant to vacate their hangar. • APPRAISAL ASSESSMENT STUDY: At the request of the Airport Board, we had an independent contractor complete an assessment of our corporate hangar and terminal building office space. The study determined values by taking into account; current market, the terminal building' s vacancy percentage, comparable and similar local/regional airport office and hangar space as well as local businesses rental offices. The study determined the value of our Terminal Building office space as $ 11 .00 per square foot and our corporate hangars as $3 . 00 - $3 .50 dollars per square foot. (see attached sheet) • GRANT ASSURANCES : In order to be compliant with Grant Assurances 19 and 29, we should be charging fair market value for our T-Hangars that are used for storage only. Currently, we are not. The attached sheet shows our suggested rents for local Fair Market Value average per square foot (rounded down to the nearest dollar). Additionally, we are going to ask tenants storing RVs, trailers, vehicles, boats, etc. on the Airport Apron to remove their property from site on the airport apron. This "out- in-the-open" storage without any fees collected places the airport at risk of the FAA finding us in violation of FAA grant assurances 19 and 29 . Beginning in February, we will send 90 day notices to tenants to make arrangements to remove these items. After 90 days, the city will have these items towed and removed from airport property. Alternate locations for storage of these items in order to collect revenue for the airport were considered - it will cost the city anywhere from 20-40K to construct and develop these areas. • AIRPORT ACCESS AND SECURITY: FOBS, A.K.A. "clickers" : The airport has tried, fairly unsuccessfully, to ensure our gate FOBS are 100% operable. As such and because they do pose a potential security risk, we are going to deactivate the FOBs and reimburse tenants who paid for them. In order to receive reimbursement, tenants Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 Proposed Drake Field Lease Adjustments Terminal Building - Independent Study concluded terminal office space is valued at $11.00 PSF Recommend : < 1000 Square Feet: $11 psf ( 1-2 year lease) 1000-2000 Square Feet: $9.50 psf ( 1-2 year lease) > 2000 Square Feet: $7 ( 1-2 year lease) Corporate Hangars - Independent Study concluded corporate hangar space is valued at $3.00-$3.50 PSF Recommend : $3. 25 psf for hangars 2004 and newer* If tenant rents entire hangar along with office space, rent would increase if primary tenant subleases to Non-Aeronautical business tenant (this is in accordance with Grant Assurances 19.a and/or 29.a .3) *City will continue to assess fair prices for older hangars T-Hangars - Independent study did not assess T-Hangars, they are currently valued at $1.54-$1.94 PSF Recommend : Continue with current prices for tenants with aircraft & aviation businesses Charge tenants Fair Market Value if they have hangars for storage only. If we do not, we will be in violation of Grant Assurances 19.a and/or 29.a.3 HANGAR TYPE SQ FEET AERONAUTICAL* STORAGE ONLY** Single T ( B,C, D) 1050 $ 170 $350 Modified Single T (B,C,D) 1150 $193.52 $383 Small Twin (A) 1390 $205 $463 Regular Twin (E,G,F,H) 1440 $210 $480 Twin Modified (1-18) 1656 $241.50 $552 Twin Modified (H4) 1944 $283.50 $648 Twin Modified (1-11) 2160 $315 $720 * $ 1.54-$1.94 PSF (Aeronautical Operation, i.e., owns aircraft or has aviation business) * * $4.00 PSF (Fair Market Value for non-Aeronautical Operation/Storage Only) CITY OF Tay e evi ARKANSAS Airport Progress Report TO: Fayetteville Executive Airport Board THRU: Johnny Roscoe, Aviation Director FROM : James Nicholson, Financial Coordinator DATE: January 15, 2015 Tower O erations Cumulative MONTH 2009 2010 2011 2012 2013 2014 MONTH 2009 2010 2011 2012 2013 2014 JAN 2,492 1,932 1,917 2,552 2,928 3,147 JAN 2,492 1,932 1,917 2,552 2,928 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 6,564 6,055 6,851 8,357 9,506 APR 2,629 2,775 2,254 2,763 2,687 3,021 APR 10830 9,339 8,309 9,614 11,044 12,529 MAY 2,722 3,015 2,627 3,180 3,090 2,744 MAY 13,552 12,354 10,936 12,794 14,134 15,273 JUN 2,876 2,531 2,859 3,195 4,059 2,67 JUN 16,428 14,885 13,795 15,989 18,193 17,950 JUL 3,100 2,895 2,758 3,050 2,648 2,985 JUL 19,528 17,780 16,553 19,019 20,841 20,935 AUG 2,8681 2,5131 2,676 2,951 1 2,6681 3,539 AUG 1 22,396 20,293 19,229 21,990 SEP 3,577 2,684 3,503 4,864 4,331 4,281 SEP 25,973 22,97 221732 26,854 OCT 2,67 3,125 2,998 3,320 3,649 2,969 OCT 28,6W 26,102 25,730 30,174 N0V 2,586 1,964 2,379 3,392 2,794 2,271 NOV 31,236 28,066 28,109 33,566283=33 DEC 1,842 1,841 2,164 2,546 2,132 1,195 DEC 33,078 29,907 30,273 36,112 Mont* Aq 1 2,7571 2,4921 2,5231 3,009 1 3.W51 2,983 Iftual Chg 1 3.64% -9.59%1 1.22% 19.29% Operations - 12 Month Comparison "11. 12 5,500 5,000 4,500 0 4,000 3,500 T 3,000 2,500 2,000 1,500 1,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Month OPERATIONS Month Average Annual Comparison �. Lw YONTM A�RKK 4.500 4.004 4,000 3,898 3,500 2887 3,009 3,035 2,983 3,000 2,492 2,523 2,500 S 2,000 d 1 ,500 2 1 ,000 500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Period: Jan - Dec Fuel Sales - Average Margin Tracking DEC 2014 DATA JET A 100 LL 1001.1. SS MOGAS TOT ALL AVG COST/GAL 3. 1956 4.2078 4. 1848 3.4639 3. 3412 GAL SOLD 21706 2771 882 117 25476 GROSS REV 100354 14181 4341 475 119351 AVG GRS REV/GAL 4.6233 5. 1179 4.9211 4. 0608 4.6849 AVG MARGIN/GAL 1 .4278 0.9101 0.7363 0. 5969 1 .3437 TARGET MRGN/GAL 1 . 50 1 .25 0. 75 0. 501 .4459 DIFFERENCE (0.0722) (0. 3399) (0.0137) 0.0969 (0. 1022) VARIANCE -4. 82% -27. 19% -1 . 83% 19.37% -7.07% Local Fuel Prices: Fuel prices within 50 miles of FYV as of 1 /13/15 Ident FBO Narne Jet FS 100LL FS 100LLSS 91 MDGas A$ Jet e $ 11001. A $ 1 Doss H34 Hunstville Municipal - - 4.95 NC SLG City ofSiloam Springs 3.84 4.49 3.86 1 .61 1 .00 1 .13 FSM TAC Air 4.94 6.07 0.25 0.42 XNA Regional Jet Center 4.95 6.07 0.74 0.17 TQH City ofTahlequah bothseffsery 5.00 5.23 NC NC FW City of Fayetbeville 5.11 5.55 4.70 4.06 0.73 0.64 0.65 ASG Summit Aviation - Springdale 5.37 5.50 4.50 0.32 0.55 1 .13 VBT SummitAviation - Bentonville 5.65 6.05 5.25 0.04 NC 0.10 ROG Beaver Lake Aviation 5.75 6.11 0.16 NC Fuel Prices: National 1 /13/15 Source : GlobalAir.com Aviation Fuel Current US Fuel Prices Current Fuel Prices 8 Averages by Region Northwest Abuntain NwE' n Ifind Great Lakes X5 , 03 Eastern §pp 5 1 g Billie Central 1; 5 , 61 stern Pacific Southern Southwest Southern Alaska Bill 15 . � � � 6 , 5Z O City of Fayetteville Airport Balance Sheet Statement of Fund Net Assets As of December 31, 2014 December 2014 December 2013 ASSETS Current Assets: Cash and Cash Equivalents 499,839 278,072 Accounts Receivable 133,029 85,986 Accrued Interest - 243 Due from Other Funds 22,614 6,882 Due From Other Government 2,033 238,859 Prepaid Expenses 13,793 14,640 Inventory 175,342 73,350 Capital Assets: Land 3,7501133 31750, 133 Buildings 16,8711241 16,870,441 Construction in Progress - - Machinery and Equipment 896,210 885,758 Non-Building Improvements 171037,435 17,037,435 Accumulated Depreciation (28,3781480) (27,2101749) Total Assets 111023,187 12,031,050 LIABILITIES Current Liabilities Accounts Payable 56,448 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 ( 17,954) 71,994 Noncurrent Liabilities Advance Payable 172, 112 186,357 Escrow 6,926 61718 Long Term Accrued Comp Absences 54,375 54,375 Deferred Revenue - 18,551 Total Liaiblities 298,357 408,352 NET ASSETS Investment in Capital Assets 10,176,538 11,333,017 Unrestricted 548,292 289,681 Current year Rev/exp - Total Net Assets 10,7241830 111622,698 Liabilities + Net Assets 11,023,187 121031,050 .Eity of Nyetteville Airport Operating Analysis For Month Ended December 31, 2014 Actual Budget 2014 2014 Year to Date Year to Date Budget Administration and Maintenance Revenues Rents 562,592 514,700 514,700 Miscellaneous 13,601 8,000 8,000 Sales Tax Revenue 19,418 32,000 32,000 Other - Total Revenues 595,612 554,700 554,700 Expenses Salaries 266,857 3410750 346,749 Materials and Supplies 15,520 22,935 210110 Services/Charges 190,977 217,327 246,812 Cost Allocation to General Fund 71915 7,915 7,915 Principal Payment Allocation 14,245 15,530 15,530 Interest on Hangar Loan 5,126 5,591 5,591 Maintenance 89;634 68,334 74,089 Total Expenses 590,275 679,382 717,796 Net Income (Loss) from Admin/Maint 5,337 (124,682) (163,096) FBO Revenues and Expenses Revenues Rent - FBO Hangars 15,345 24,000 24,000 Aviation Fuel 1,705,873 1,867,500 1,867,500 Accessories 65,030 25,000 25,000 Total Revenues 1,786,249 1,9160500 11916,500 Expenses Salaries 246,642 266,877 261,878 Materials and Supplies 12,813 19,561 19,511 Inventory - Aviation Fuel 1,159,516 1,2720226 1,272,226 Services/Charges 77,521 141,691 145,341 Cost Allocation to General Fund - 16,667 16,667 Maintenance 18,724 18,800 15,800 Total Expenses 1,515,217 1,735,822 1,731,423 Net Income (Loss) from FBO - 271,032 180,678 185,077 Other Revenues Investment Interest 3,186 1,800 1,800 Grants 18,523 41,105 - Total Revenues 21,709 42,905 1,800 Expenses Fixed Assets 10,452 800 - Hangar Office Addition 800 31,000 ARFF Protective Clothing 29,529 36,050 Terminal Apron Rehab 20,332 Total Expenses 61,113 67,850 - (39,404) (240945) 1,800 Total Net Income (Loss) 236,964 31,051 23,781