Loading...
HomeMy WebLinkAbout18-99 RESOLUTIONRESOLUTION NO. 18 - 9 9 A RESOLUTION APPROVING A LEASE WITH NORTHWEST AVIATION TECHNOLOGIES CENTER FOR AN EXECUTIVE HANGER LOCATED AT 4248 SOUTH SCHOOL AVENUE; AND APPROVAL OF A BUDGET ADJUSTMENT FOR BUILDING IMPROVEMENTS TO COMPLY WITH CURRENT BUILDING CODE STANDARDS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETFEVILLE, ARKANSAS: Section 1. That the City Council hereby approves a lease with Northwest Aviation Technologies Center for an executive hanger located at 4248 South School Avenue; and authorizes the Mayor and City Clerk to execute said lease. A copy of the lease agreement is attached hereto marked Exhibit "A" and made a part hereof. Section 7 The City Council hereby approves a budget adjustment in the amount of $75,000 increasing Building Improvements, Acct. No. 5550 3960 5804 00, Project No. 99050 1 decreasing Building Improvements, Acct. 5550 3960 5804 00, Project No. 99039 1, in the amount of 560,000; and Use of Fund Balance, Acct. No. 5550 0955 4999 99, in the amount of $15,000. A copy of the budget adjustment is attached marked Exhibit "B" and made a part hereof. PASSED AND APPROVED this2 day of February , 1999. `. •• ^n �. i_ r ATTES•:••.:,• , � 14 7 By ��r� eather Woodruff, City C fef k APPROVED By. Hanna, Mayor • NAME OF FILE: /2. /g- 99/J)2) ,41z4rrc,✓ey,ID4DESEs Ce1oT&C CROSS REFERENCE: Date Contents of File Initials ,f -Di? -Y9 ,&s . /8-4/Y a-Xi/T „ 7 e,xceurzv yA,UcaA,2 s� ,�'Eam�,) r) A' l� Z-Xi/ZArT IT' (.�1[.i)(xe A.biu.s7mEilr) :2-03-19 AS p -A RAAl iAi Aing -719D 70 (-R Aa T ACtReg yr) FA — 6-45-98 J rr ,c T Ti?, Ata-Aae- Cid? rema,✓ .ii -/I-98 J Po /5rr MSzLn Po<El%14.iQ C�1Az-,e?r,Ad • • EXHIBIT A; TOP 4.2 EXECUTIVE HANGAR LEASE AGREEMENT This LEASE AGREEMENT made this day of ,t o . 19 79. between the City of Fayetteville, Arkansas. hereinafter called "Lessor". and Northwest .Arkansas Aviation Technologies Center. of 100 W. Center. Suite 300. Faveneville. AR 72701. hereinafter called "Lessee". WHEREAS Lessor is the owner of an airport known as the Fayetteville Municipal .Airport (Drake Field), herein referred to as the "Airport". and WHEREAS Lessor is the owner of a facility at the Airport: and WHEREAS. Lessee desires to lease this facility. NOW, THEREFORE, the parties. in consideration of the mutual covenants contained herein. hereby agree as follows: 1. Lessor leases to Lessee. and Lessee leases from Lessor, the facility at 4248 South School Avenue. Fayetteville. Arkansas. 72701 as reflected on Exhibit "A" attached hereto and made a part hereof. 2. Lessee is granted the use. without charge, in common with others similarly authorized. of the Airport. together with all facilities. equipment, improvements. and services which have been or may hereafter be provided at or in connection with the Airport from time to time including. but not limited to. the landing field and any extensions hereof or additions thereto, roadways. not less than one hundred (100) parking spaces. runways. ramps (including noise barriers), m 2 aprons. taxiways. flood lights. landing lights. beacons. control tower. signals. radio aids and all other conveniences for flying. landings and take -offs. 3. Lessee shall have at all times the full and free right in ingress to and egress from the demised premises and facilities referred to herein for Lessee. its employees. students. guests. and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Lessee. 4. Subject to earlier termination as hereinafter provided. the initial term of the Lease Agreement shall be for a period of five (5) years. commencing on the later of: (I) the Date of Lessee's Beneficial Occupancy, or (ii) the 1" day of Mav . 1999 (the effective date hereinafter referred to as the "Commencement Date") and ending on the 30' day of April. 2004. Lessor further agrees to extend this Agreement for three additional five (5) year terms. The parties agree that the rental to be effective as of the commencement of each of the renewal terms shall be equal to the rate set forth in Section 5. as adjusted by the CPI Index. as defined to mean the monthly index published by the United States Department of Labor. Bureau of Labor Statistics. Consumer Price Index for all Urban Customers (CPI -U) Dallas -Fort Worth. Texas - All Items (1982-1984=100). Index utilized will be as of December 31 as published on March 31 prior to the renewal date. Lessor and Lessee agree that Either Party may terminate this .Agreement at any time after the first year of Lessee's beneficial occupancy by providing notice to the other party thiny: (30) days prior to the effective date of termination. Lessee agrees to pay Lessor for the use of the demised premises. facilities. rights. and privileges granted hereunder the sum of S 4.500.00 per month during the initial LL.asr. term. 2 • • • • However. should the Lease term begin on a day other than the first day of a calendar month. or should the Lease end on a day other than the last day of a calendar month. such partial month Lease payment shall be a pro -rated share of the monthly Lease payment. The initial Lease payment is due and payable upon the Commencement Date and all subsequent monthly Lease payments shall be due and payable in advance on or before the 1st day of each calendar month thereafter. 6. Lessor shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of Lessee. 7. Lessee shall provide for and supply at its expense all janitor service with respect to the demised premises. and shall pay for all utilities serving the demised premises. 3. Lessee agrees to observe and obey Lessor's Ordinances and Regulations with respect to use of the demised premises and Airport. provided. however. such rules and regulations shall be consistent with safety and with all city. county. and state rules and regulations. including all current tire codes. and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. Lessee shall be subject to Lessor's "Minimum Standards for Commercial Aeronautical Activities at Drake Field" which are incorporated herein by reference thereto and made a pan hereof as if set out word for word. Lessor warrants and covenants unto Lessee that no hazardous or any other substances. as defined in 40 CFR 302. exist on the demised premises which are restricted. prohibited or penalized by an "Environmental Law". which term shall mean any federal. state or local law, regulation or ordinance relating to pollution or protection of the environment. If any testing or study discloses the existence of any hazardous substances on the demised premises that are determined to have been present on the demised premises prior to the execution of this Lease. 3 • it shall be Lessor's responsibility to timely arrange and pay for any costs associated with environmental testing and/or studies. remedial action. cleaning up or removing the hazardous substances to a proper disposal site in accordance with all applicable laws and the governmental agency having jurisdiction thereof. 9. Lessor authorizes Lessee to use the premises for the implementation and conducting of an Aviation Maintenance Technology Program. including but not limited to. the provision of such training and educational components as are required for an airframe and power plant certification by the Federal Aviation Administration under FAR 147. Subject to the prior written approval of the Lessor, which shall not be unreasonably withheld. Lessee shall also have the right to use the demised premises for other purposes ancillary or related to Lessee's operations. Aircraft. aircraft components and sub -components. vehicles. equipment. materials and/or supplies necessary to the training program may be stored on the demised premises. Lessee further agrees to store flammable material only in approved containers. and not to violate the provisions of Lessor's standard commercially available property damage insurance policy. Any such violations shall constitute a material breach of this agreement. 10. If the demised premises are partially damaged by fire or other casualty which is not due to the negligence or fault of the Lessee, said premises shall be repaired with due diligence by Lessor at Lessor's expense. If the damage is so extensive as to render such building untenable. the rent payable hereunder shall be proportionally paid up to the time of such damage and shall thenceforth cease until such time as the premises shall be fully restored. If the demised premises are completely destroyed. Lessor may reconstruct the hangar at the Lessor's own cost and the rent 4 • • • • • payable hereunder shall be adjusted as set forth above. or either Lessor or Lessee may. at its option. cancel this agreement. such cancellation to be effective as of the date the hangar was destroyed. and the rent adjusted as set forth above. 11. Lessor shall procure and maintain in force during the term of this Agreement fire and extended coverage on the facility in an amount equivalent to the replacement cost thereof. Lessee shall be required to insure anv contents within the facility. During the term of this agreement Lessee shall at all times maintain general public liability insurance in the amount of S1.000.000.00. Lessee shall file with Lessor's Airport Manager Certificates of Insurance evidencing the insurance coverage required hereby. 12. Lessee agrees to indemnify Lessor against any liability for injuries to persons or damage to property caused by Lessee's gross negligent use or occupancy of the leased premises; provided. however. that Lessee shall not be liable for anv injury, damage or loss occasioned by the negligence of Lessor or its agents or employees; and provided further. that each party shall give prompt and timely notice of any claim made or suit instituted which in anv way directly or indirectly affects or might affect either party, and each party shall have the right to compromise and defend the same to the extent of its own interest. This clause shall not be construed to waive that tort immunity as set forth under Arkansas Law. 13. Improvements: Lessor shall bear the cost of all improvements necessary to comply with all current State and local building codes for the basic building structure area including. but not limited to: (1) floors. walls. ceiling and roof: (ii) sprinkler system: (iii) all plumbing and fittings thereto: (iv) primary electrical circuits; (v) heating. ventilation and air conditioning (HVAC): (vi) 5 • • • • maintenance of existing paved ramp and parking lots: and (vii) existing perimeter fences. Lessee shall bear the cost of all improvements or additions made to the interior of the building for new classrooms and/or labs. including. but not limited to: (I) the construction of new walls and ceilings: (ii) the installation of new stairwells. doors and lighting fixtures: (iii) the relocation of existing and/or installation of new electrical circuits: (iv) the construction of a new sidewalk on the north side of the existing building: and the installation of new HVAC ducts and grates. No improvements or additions to any part of the leased premises shall be made by Lessee without the prior written approval of the Airport Manager. Any signs to be erected on or attached to the leased premises must have the prior written approval of the Airport Manager and conform to all City ordinances. 14. Maintenance: The Lessor shall be responsible only for major maintenance of the existing equipment, i.e. replacement of heating unit and other equipment installed by Lessor which includes roof, exterior walls and exterior plumbing. HVAC. and sprinkler system. existing paved ramp and paved parking lots. The Lessor agrees that if the roof or any part of the exterior walls or exterior plumbing of said building thereof shall become defective or damaged at am time during the term due to ordinary wear and tear and not due to negligence of the Lessee, or Lessee's agents or invitees, upon notice from Lessee. the Lessor will immediately cause repairs to be made and restore the defective portions to good condition. Routine maintenance of the large aircraft doors shall remain the responsibility of the Lessor. 15. If Lessee fails to make any payment due hereunder within thirty (30) days of the date on which such payment is due. Lessor may. at its option. terminate this Agreement and take possession of so much of Lessee's personal property as is reasonably necessary to secure payment 6 of the amount due and unpaid. Lessor shall also have the right to terminate this .Agreement in the event Lessee breaches any other terms of this Agreement: provided. however, no breach shall be deemed to exist unless Lessee fails to cure said breach within thirty (30) days after receipt of written notice thereof. As to curing of a breach (other than the payment of rent) which would reasonably require a greater period of time for curing than is provided for above. if the Lessee shall. within the time stipulated. commence such curing and diligently pursue same then the above time period shall be extended to allow Lessee reasonable opportunity to complete said cure. • 16. On the expiration or other termination of this Lease. Lessee's right to use the demised premises shall cease. and Lessee shall vacate the premises without unreasonable delay. All permanent interior structures installed. erected. or placed by Lessee in, on. or about the premises leased hereunder shall remain the property of Lessor. 17. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose necessary or incidental to the performance of its obligation. 18. Lessee shall maintain the demised premises in a clean and orderly fashion at all times. 19. Lessee shall not start or operate aircraft engines within the facility leased hereby and shall not allow such operations by any other person. 20. Lessee shall not at any time assign this lease or sublet the demised premises without the prior written consent of Lessor. 21. Any notice or consent required by this Agreement shall be sufficient if sent by Certified Mail. return receipt requested. postage paid. to the following address: 7 • LESSOR: Airport Administration Office 4500 S. School. Suite F Fayetteville. Arkansas 72701 Phone: 501-5214730. ext. 6 LESSEE: Chairman. Northwest Arkansas Aviation Technologies Center 100 West Center Suite 300 Fayetteville. AR 72701 Telephone: 501-582-2100 23. This Agreement shall be construed under the laws of the State of Arkansas. 2a. All the covenants. conditions. and provisions under this Agreement shall extend to and bind the legal representatives, successors. and assigns of the respective parties hereof. (The remainder of this page is intentionally left blank.) 8 • • • IN WITNESS WHEREOF. the parties have executed this Lease on the day and year first above written. ATTEST: By: LESSOR: CITY OF FAY E. ARKANSAS Bv: Altadi Heather Woodruff. City Clerk ATTEST Tale: .ot (Secretary) Fred Hanna. Mayor LESSEE: NORTHWEST ARKANSAS AVIATION TECHNOLOGIES,TER By: /.A.'_I� ._ Mark i mons Title 9 Chairman • • • • EXECUTIVE HANGAR LEASE AGREEMENT This LEASE AGREEMENT made this day of , 19 between the City of Fayetteville, Arkansas, hereinafter called "Lessor", and Northwest Arkansas Aviation Technologies Center, of 100 W. Center, Suite 300, Fayetteville, AR 72701, hereinafter called "Lessee". WHEREAS, Lessor is the owner of an airport known as the Fayetteville Municipal Airport (Drake Field), herein referred to as the "Airport"; and WHEREAS, Lessor is the owner of a facility at the Airport; and WHEREAS, Lessee desires to lease this facility. NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein, hereby agree as follows: 1. Lessor leases to Lessee, and Lessee leases from Lessor, the facility at 4248 South School Avenue, Fayetteville, Arkansas, 72701 as reflected on Exhibit "A" attached hereto and made a part hereof. 2. Lessee is granted the use, without charge, in common with others similarly authorized, of the Airport, together with all facilities, equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport from time to time including, but not limited to, the landing field and any extensions hereof or additions thereto, roadways, not less than one hundred (100) parking spaces, runways, ramps (including noise barriers), 1 • aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and take -offs. 3. Lessee shall have at all times the full and free right in ingress to and egress from the demised premises and facilities referred to herein for Lessee, its employees, students, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to Lessee. 4. Subject to earlier termination as hereinafter provided, the initial term of the Lease Agreement shall be for a period of five (5) years, commencing on the later of: (I) the Date of Lessee's Beneficial Occupancy, or (ii) the 1" day of Mav , 1999 (the effective date hereinafter referred to as the "Commencement Date") and ending on the 30th day of April, 2004. Lessor further agrees to extend this Agreement for three additional five (5) year terms. The parties agree that the rental to be effective as of the commencement of each of the renewal terms shall be equal to the rate set forth in Section 5, as adjusted by the CPI Index, as defined to mean the monthly index published by the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all Urban Customers (CPI -U) Dallas -Fort Worth, Texas - All Items (1982-1984=100). Index utilized will be as of December 31 as published on March 31 prior to the renewal date. Lessor and Lessee agree that Either Party may terminate this Agreement at any time after the first year of Lessee's beneficial occupancy by providing notice to the other party thirty (30) days prior to the effective date of termination. 5. Lessee agrees to pay Lessor for the use of the demised premises facilities, rights, and privileges granted hereunder the sum of $ 4.500.00 per month during the initial Lease term. 2 • C • • However, should the Lease term begin on a day other than the first day of a calendar month, or should the Lease end on a day other than the last day of a calendar month, such partial month Lease payment shall be a pro -rated share of the monthly Lease payment. The initial Lease payment is due and payable upon the Commencement Date and all subsequent monthly Lease payments shall be due and payable in advance on or before the 1st day of each calendar month thereafter. 6. Lessor shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of Lessee. 7. Lessee shall provide for and supply at its expense all janitor service with respect to the demised premises, and shall pay for all utilities serving the demised premises. 8. Lessee agrees to observe and obey Lessor's Ordinances and Regulations with respect to use of the demised premises and Airport; provided, however, such rules and regulations shall be consistent with safety and with all city, county, and state rules and regulations, including all current fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. Lessee shall be subject to Lessor's "Minimum Standards for Commercial Aeronautical Activities at Drake Field" which are incorporated herein by reference thereto and made a part hereof as if set out word for word. Lessor warrants and covenants unto Lessee that no hazardous or any other substances, as defined in 40 CFR 302, exist on the demised premises which are restricted, prohibited or penalized by an "Environmental Law", which term shall mean any federal, state or local law, regulation or ordinance relating to pollution or protection of the environment. If any testing or study discloses the existence of any hazardous substances on the demised premises that are determined w have been present on the demised premises prior to the execution of this Lease, 3 • • • it shall be Lessor's responsibility to timely arrange and pay for any costs associated with environmental testing and/or studies, remedial action, cleaning up or removing the hazardous substances to a proper disposal site in accordance with all applicable laws and the governmental agency having jurisdiction thereof. 9. Lessor authorizes Lessee to use the premises for the implementation and conducting of an Aviation Maintenance Technology Program, including but not limited to, the provision of such training and educational components as are required for an airframe and power plant certification by the Federal Aviation Administration under FAR 147. Subject to the prior written approval of the Lessor, which shall not be unreasonably withheld, Lessee shall also have the right to use the demised premises for other purposes ancillary or related to Lessee's operations. Aircraft, aircraft components and sub -components, vehicles, equipment, materials and/or supplies necessary to the training program may be stored on the demised premises. Lessee further agrees to store flammable material only in approved containers, and not to violate the provisions of Lessor's standard commercially available property damage insurance policy. Any such violations shall constitute a material breach of this agreement. 10. If the demised premises are partially damaged by fire or other casualty which is not due to the negligence or fault of the Lessee, said premises shall be repaired with due diligence by Lessor at Lessor's expense. If the damage is so extensive as to render such building untenable, the rent payable hereunder shall be proportionally paid up to the time of such damage and shall thenceforth cease until such time as the premises shall be fully restored. If the demised premises are completely destroyed, Lessor may reconstruct the hangar at the Lessor's own cost and the rent 4 payable hereunder shall be adjusted as set forth above, or either Lessor or Lessee may, at its option, cancel this agreement, such cancellation to be effective as of the date the hangar was destroyed, and the rent adjusted as set forth above. 11. Lessor shall procure and maintain in force during the term of this Agreement fire and extended coverage on the facility in an amount equivalent to the replacement cost thereof. Lessee shall be required to insure any contents within the facility. During the term of this agreement Lessee shall at all times maintain general public liability insurance in the amount of$1,000,000.00. Lessee shall file with Lessor's Airport Manager Certificates of Insurance evidencing the insurance coverage required hereby. 12. Lessee agrees to indemnify Lessor against any liability for injuries to persons or damage to property caused by Lessee's gross negligent use or occupancy of the leased premises; provided, however, that Lessee shall not be liable for any injury, damage or loss occasioned by the negligence of Lessor or its agents or employees; and provided further, that each party shall give prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly affects or might affect either party, and each party shall have the right to compromise and defend the same to the extent of its own interest. This clause shall not be construed to waive that tort immunity as set forth under Arkansas Law. 13. Improvements: Lessor shall bear the cost of all improvements necessary to comply with all current State and local building codes for the basic building structure area including, but not limited to: (1) floors, walls, ceiling and roof; (ii) sprinkler system; (iii) all plumbing and fittings thereto; (iv) primary electrical circuits; (v) heating, ventilation and air conditioning (HVAC); (vi) maintenance of existing paved ramp and parking lots; and (vii) existing perimeter fences. Lessee shall bear the cost of all improvements or additions made to the interior of the building for new classrooms and/or labs, including, but not limited to: (I) the construction of new walls and ceilings; (ii) the installation of new stairwells, doors and lighting fixtures; (iii) the relocation of existing and/or installation of new electrical circuits; (iv) the construction of a new sidewalk on the north side of the existing building; and the installation of new HVAC ducts and grates. No improvements or additions to any part of the leased premises shall be made by Lessee without the prior written approval of the Airport Manager. Any signs to be erected on or attached to the leased premises must have the prior written approval of the Airport Manager and conform to all City ordinances. 14. Maintenance: The Lessor shall be responsible only for major maintenance of the existing equipment, i.c. replacement of heating unit and other equipment installed by Lessor which includes roof, exterior walls and exterior plumbing, HVAC, and sprinkler system, existing paved ramp and paved parking lots. The Lessor agrees that if the roof or any part of the exterior walls or exterior plumbing of said building thereof shall become defective or damaged at any time during the term due to ordinary wear and tear and not due to negligence of the Lessee, or Lessee's agents or invitees, upon notice from Lessee, the Lessor will immediately cause repairs to be made and restore the defective portions to good condition. Routine maintenance of the large aircraft doors shall remain the responsibility of the Lessor. 15. If Lessee fails to make any payment due hereunder within thirty (30) days of the date on which such payment is due, Lessor may, at its option, terminate this Agreement and take possession of so much of Lessee's personal property as is reasonably necessary to secure payment 6 • of the amount due and unpaid. Lessor shall also have the right to terminate this Agreement in the event Lessee breaches any other terms of this Agreement; provided, however, no breach shall be deemed to exist unless Lessee fails to cure said breach within thirty (30) days after receipt of written notice thereof. As to curing of a breach (other than the payment of rent) which would reasonably require a greater period of time for curing than is provided for above, if the Lessee shall, within the time stipulated, commence such curing and diligently pursue same, then the above time period shall be extended to allow Lessee reasonable opportunity to complete said cure. 16. On the expiration or other termination of this Lease, Lessee's right to use the demised premises shall cease, and Lessee shall vacate the premises without unreasonable delay. All permanent interior structures installed, erected, or placed by Lessee in, on, or about the premises leased hereunder shall remain the property of Lessor. 17. Lessor may enter the premises leased to Lessee at any reasonable time for any purpose necessary or incidental to the performance of its obligation. 18. Lessee shall maintain the demised premises in a clean and orderly fashion at all times. 19. Lessee shall not start or operate aircraft engines within the facility leased hereby and shall not allow such operations by any other person. 20. Lessee shall not at any time assign this lease or sublet the demised premises without the prior written consent of Lessor. 21. Any notice or consent required by this Agreement shall be sufficient if sent by Ccnified Mail, return receipt requested, postage paid, to the following address: 7 • • LESSOR: Airport Administration Office 4500 S. School, Suite F Fayetteville, Arkansas 72701 Phone: 501-521-4750, ext. 6 LESSEE: Chairman, Northwest Arkansas Aviation Technologies Center 100 West Center Suite 300 Fayetteville, AR 72701 Telephone: 501-582-2100 23. This Agreement shall be construed under the laws of the State of Arkansas. 24. All the covenants, conditions, and provisions under this Agreement shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereof. (The remainder of this page is intentionally left blank.) 8 f • • IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. ATTEST: By: Heather Woodruff, City Clerk ATTEST: By: Title: Buddy Philpot (Secretary) LESSOR: CITY OF FAYETTEVILLE, ARKANSAS By: Fred Hanna, Mayor LESSEE: NORTHWEST ARKANSAS AVIATION TECHNOLOGIES CENTER By: Title: Mark Simmons Chairman Mark Simnonr, Chairman Dennis Anderson, Vin Chairman Baddy Philpot, Secretary Ken PrmmiL( Drawer Dunton: Jim Von Grump Richard Daniel Berton Elliott Adwinirhnbiur Ste Caro! Lindtry Uwlek Lindcry Scott Van Laninsham Midler! /indrry • • • ARKANSAS AVIATION TECHNOLOGIES CENTER 100 West Calk?, Smite 300 - Fgrttnille, Arkattar 72701 Phones (501) 582-2100 - Far (501) 582-1919 February 17, 1999 Mayor Frcd Hanna City of Fayetteville 113 W. Mountain Fayetteville, AR 72701 Dear Mayor Hanna, Please find two sets of the Hangar Lease Agreement and the Agreement between the City and the Arkansas Aviation Technologies Center attached with this letter for your execution. The first set is the original documents signed by Chairman Mark Simmons and Secretary Buddy Philpot yesterday and the second set is a copy of the originals. Please keep the originals for your files and return the copies to me at your convenience. If you have any questions, please feel free to call Uvalde Lindsey or myself. Thank you for all of your time and assistance in this matter. V�Regarpds, j Michael Lindsey Administrative Staff The Arkansas Anatian Tethnologies Cents it an equal wartmnity / affirmative action er aiiation City of Fayetteville, Arkansas Budget Adjustment Form • EXHIBIT B Budget Year 1999 Department: General Government Division: Airport Program: Airport Capital Date Requested 01/26/99 Adjustment N EXy. BU DCr! A Project or Item Requested: Funding is requested to establish a project to renovate an executive hanger at Drake Field for the Northwest Arkansas Aviation Technologies Center for use as an aircraft construction and maintenance school. Project or Item Deleted: Funding proposed for this adjustment is from the HVAC Air handlers project and use of fund balance. Justification of this Increase: The funding requested will provide the project funds to bring the basic building systems up to the current building codes. The NWAATC has committed to a multiyear lease agreement utilizing the executive hanger formally occupied by Mesa Airlines. Justification of this Decrease: The Air Handler project was for replacement of equipment in the passenger terminal. With the relocation of essentially all of the passenger air traffic the project can be postponed. Sufficient cash & investments cxist to fund the remaining cost of the this project. Increase Expen e (Decrease Revenue) Account Name Amount Building Improvements 135,000 Account Name Building Improvements Use of Fund Balance Account Number Project Number 5550 3960 Decrease Expense (Increase Revenue) Amount 5804 00 99050 1 Account Number Project Number 60,000 5550 3960 5804 00 75,000 5550 0955 4999 99 99039 1 Approval Signatures Req 'sic ,By :417oordinalor ittAian= aryctor v—U.J J m. Scryyr)*s Direc Mayor Datc I-26- 99 Date Dare 2(0,)A tsi R y tate Blue Copp: Budget & Research / Yellow Copy: Requester Budget Office Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log C:W PPt99BUDGEflBUDGTADANWAATC. • City of Fayetteville, Arkansas Budget Adjustment Form • • • Budget Year 1999 Department: General Government Division: Airport Program: Airport Capital Date Requested 01/26/99 Adjustment It Project or Item Requested: Funding is requested to establish a project to renovate an executive hanger at Drake Field for the Northwest Arkansas Aviation Technologies Center for use as an aircraft construction and maintenance school. Project or Item Deleted: Funding proposed for this adju tment is from the FIVAC Air handlers project and use of fund balance. Justification of this Increase: The funding requested will provide the project funds to bring the basic building systems up to the current building codes. The NWAATC has committed to a multiyear Icasc agreement utilizing the executive hanger formally occupied by Mesa Airlines. Justification of this Decrease: The Air Handler project was for replacement of equipment in the passenger terminal. With the relocation of essentially all of the passenger air traffic the project can be postponed. Sufficient cash & investments exist to fund the remaining cost of the this project. Increase Expense (Decrease Revenue) Account Name Amount Building Improvements 135,000 Account Number Project Number 5550 3960 Decrease Expense (Increase Revenue) Account Name Amount Building Improvements Use of Fund Balance 5804 00 99050 1 Account Number 60,000 5550 3960 75,000 5804 00 5550 0955 4999 99 Project Number 99039 1 Req Approval Signatures oordinator Dimino irys for r 1ttin. Servicts Director Mayor Date i-26- 9ci Date Date Date Date Blue Color: Nudger .( Research / Yellow Corr: Requester Budget Office Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log • C.'vtPlwveUDGENiU/Cr %DAN Watt TC. FAYETTEVLLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Fred Hanna, Mayor From: Kevin Crosson, Administrative Services Director re: Economic Development Grant Award - Aviation Maintenance Technology Program Date: February 3, 1999 The Arkansas Department of Economic Development has awarded a pass-through grant to establish the Northwest Arkansas Aviation Technologies Center (NWAATC) at Drake Field in Fayetteville. The NWAATC will utilize the funds to establish an aviation maintenance technology program, which will be certified under the Federal Aviation Administration (FAA) - Regulation 147 for training of airframe and powerplant mechanics. The school will utilize an executive hanger at Drake Field. City Council is requested to accept the grant award, approve an agreement with the Northwest Arkansas Aviation Technologies Center, and approve a budget adjustment recognizing the grant revenue and establishing an expenditure budget for the grant expenses. RR ECON DEVLPMT COMMSN Fax:501-682-7499 Jan 26 '99 11)20 P.O1 411 • ECONOMIC INFRASTRUCTURE FUND GRANT PROGRAM GRANT AGREEMENT PART I Signatory Page Grantee: City of Fayetteville Grant Control: #ETF 9810 Grant Amount: 51,800,000 Activity Type: Training GRANTOR. GRANTEE Arkansas Department of Economic Development #1 Capitol Mall, Room 4B206 Little Rock.. Arkansas 72201 Phone: (501) 682-1211 Name: City of Fayetteville Address. 113 W. Mountain Fayetteville, AR 72701 County: Washington Phone: (501) 521-7700 This Grant Agreement, is entered into by the Arkansas Department of Economic Development, Grantor, and the City of Fayetteville, Grantee, for the purpose of providing funds to Grantee to undertake public works projects which support private sector job creation opportumties pursuant to Act 506 of 1997 and its successors. The Grantee agrees to initiate and complete a public works project in accordance with the terms of this Grant Agreement. 2. The Grantee further warrants it will conduct and administer the grant in accordance with this Agreement and all applicable State laws and regulations. ARICANSAS DEPARTMENT OF ECONOMIC CITY OF FAYETTEVILLE DEVELOPMENT BY: Signature Barbara I. Pardue Name Executive Director Title Date DN:dh Grantee BY: Signii," Fred Hanna Name Mayor of Fayetteville Title )f y, Date Vim Aatets RR ECON DEVLPMT COMMSN Fax:501-'582-7499 • Jan 26 '99 11%20 P.02 PART II - GRANSGREEMENT GGE ERAL RMS AND CONDITION In consideration of the general terms and conditions hereinafter contained, the Grantor and the Grantee agree as follows: 1. COMPENSATION AND METHOD OF PAYMENT. The Grantor will utilize a grant request for payment procedure and will authorize the Grantee to draw up to SI4800,000 against a Grant Award through the State Treasury, consistent with all fiscal requirements stipulated herein. The Grantee may request and receive authorized grant funds by submitting appropriate forms and documentation, subject to approval by the Grantor, for payments of allowable expenses incurred by the Grantee while undertaking approved project activities in accordance with this Grant Agreement. These expenses must be Identified by line item categories, which correspond to the line item categories on this Grant Agreement's Scope of Work -Budget. Requisitions will be mailed to the Grantor, and the Grantor will review and approve the requisitions before issuing Payment to the Grantee. It is expressly understood that Grantor will honor requests for payment and disburse funds only to the extent that funds have been released to Grantor therefore, consistent with the requirements of the General Accounting and Budgetary Procedures Law, the Revenue Stabilization Law and any other applicable fiscal control laws and regulations promulgated by the Department of Finance and Administration. 2. LEGAL AUTHORITY. By signing the Grant Agreement Document's Signatory Sheet, the Grantee certifies that it possesses legal authority to accept grant funds and to execute the project described in this Grant Agreement. This act of signing will also certify that the Grantee will comply with all parts of this Agreement. 3 WAIVERS. No conditions or provisions of this Grant Agreement may be waived unless approved by the Grantor, in writing. 4. ASSIGNABILITY. The Grantee will not assign any interest in this Grant Agreement and will not transfer any interest in the same (whether by assignment or novation). 5. SPECIAL CONDITIONS. The Grantee will comply with all special conditions and attachments incorporated herein to this grant award. Compliance approval and clearance of special conditions will be given by the Grantor in wnting after receipt and review of evidence of compliance from the Grantee. Official notification of a special condition and the Grantor's approval and/or clearance of special conditions must be retained by the Grantee in its files. FINANCIAL MANAGEMENT AND ACCOUNTLNG. The Grantee will establish and maintain a financial management and accounting system, which conforms to generally accept accounting principles and complies with all applicable State requirements. ALLOWABLE COSTS. All costs necessary to carry out the eligible activities in the project must be consistent with and not exceed the limitations imposed by special conditions, scope of work and budget. AMENDMENTS AND MODIFICATIONS. The Grantor will consider project amendments if they are necessitated by act ons beyond the control of a Grantee. The Grantee may request or the Grantor may require an amendment or modification of the Grant Agreement. However, such amendment or modification will not take effect until approved, in writing, by the Grantor. The Grantee must sign and return the amendment to ADED within three days. The Grantee must request prior approval for all amendments or modifications. Amendments will not be approved which would materially alter the circumstances under which the grant was onginally funded. 2 . AR EcON DEVLPMT cOMMSN Fax:501-632-7499 Jan 26 '99 11."21 P.03 9. RECORD KEEPING. The Grantee agrees to keep such records as the Grantor may require. All such records, and other records pertinent to the gant and work undertaken as part of the project, will be retained by the Grantee for a period of three years after the final audit of the program. 10. ACCESS 12 RECORDS The Grantor and duly authorized officials of the State will have full access and the right to examine any pertinent documents, papers, records, and books of the Grantee and of persons or organizanons with which the Grantee may contract, which involve transactions related to this Grant Agreement. The Grantee's contract with other persons or organizations must specifically provide for the Grantor's access to documents as provided herein. 11. REPORTS. The Grantee, at such times and in such forms as the Grantor may require, will furnish the Grantor with such periodic reports as It may request pertaining to the activities undertaken pursuant to this Grant Agreement, the costs and obligations incurred in connection therewith, and any other matters covered by this Grant Agreement. 12. OBLIGATIONS REGARDING THIRD PARTY RELATIONSHIPS. The Grantee will remain fully obligated under the provisions of the Grant Agreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the project described herein. Any subcontractor who is not the Grantee will comply with all lawful requirements of the Grantee necessary to ensure that the project is carried out in accordance with the provisions of this Grant Agreement. Failure to comply will result in sanction upon Grantee, Administrator, Engineer/Architect or Sub Contractor. This sanction will result in ADED not working with said persons, for a period of not less than one year or more than five years and/or a suspension of existing funding. The Grantee shall secure all such services in accordance with applicable State law and the provisions of this Grant Agreement, and shall notify the Grantor, in writing, of the method utilized to secure services, the name and address of the service provider(s), the scope of work anticipated and the terms of compensation. 13. CONFLICT OF INTEREST. No officer or employee of the Grantor, no member, officer, or employee of the Grantee or its designces or agents, no member of the governing body of the jurisdicuon in which the project is undertaken or located and no other official of such locality or localities who exercises any functions or responsibilities with respect to the project during his tenure, will have any personal or pecuniary gain or interest, direct or indirect, in any contract or subcontract, or the proceeds thereof for work to be performed m connection with the project assisted under this agreement. The Grantee will incorporate, or cause to incorporate, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purpose of this provision. The Grantor reserves the right to waive certain provisions of this clause in the event of a situauon once justified as unavoidable by the Grantee, and approved by the Grantor which necessitates such a waiver. 14. POLITICAL ACTWITY. No portion of the funds provided hereunder will be used for any part san political activity or to further the election or defeat of any candidate for public office or influence the approval or defeat of any ballot issue. 15. NOTICES. The Grantee will comply with all public notices or notices to individuals required by applicable State laws. 16. PROHIBITION AGALNST PAYMENTS fa )3ONUS OR COMMISSION. The assistance provided under this Grant Agreement will not be used in payment of any bonus or commission for the purpose of obtaining approval of the application for such assistance or any other approval or concurrence under this Grant Agreement. 3 RR EGON DEVLPMT COMMSN Fax :501-682-749 • Jan 26 '99 11:22 P.04 17. TERMINATION BY MUTUAL AGREEMENT. This Grant Agreement may be terminated, in whole or in part, pnor to the completion of project activities when the Grantor determines that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of funds. The Grantee will not incur new obligations for the terminated portion after the effective date, and will cancel as many outstanding obligations as possible. The Grantor will make funds available to the Grantee to pay for allowable expenses incurred before the effective date of termination. 18. TERMINATION FOR CAUSE. If the Grantee fails to comply with the terms of the Grant Agreement, or fails to use the grant for only those purposes set forth herein, the Grantor may.: (a) Suspend Grant Payments - After notice to the Grantee, suspend the grant and withhold any further payment or prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate by the Grantor. (b) Terminate in toto - Terminate the grant in whole. or in part at any time before the final grant payment is made. The Grantor will promptly notify the Grantee in writing of its determination to terminate, the reason for such termination, and the effective date of the termination. Payments made to the Grantee or recoveries by the Grantor will be in accordance with the legal rights and liabilities of the parties. 19. RECOVERY OF FUNDS. In the event of a default or violation of the terms of the Grant Agreement by the Grantee, the Grantor may institute actions to recover all or part of the proper funds paid to the Grantee. 20. DISPUTES. Except as otherwise provided in this agreement, any dispute concerting a question of fact arising under this agreement which is not disposed of by provision of the Grant Agreement, will be decided by the Grantor which will reduce its decision to writing and mail or otherwise famish a copy thereof to the Grantee The decision of the Grantor will be final and conclusive. This does not preclude the considerauon of questions of law in connection with decisions provided for in the preceding paragraph; provided that nothing in this Grant Agreement will be construed as making final the decision of any administrative official, representative or board on a question of law. 21. INDEMNIFICATION. The Grantee will defend, protect, and save harmless the Grantor from and against all claims, suits, and actions arising from any act or omission of the Grantee or any employee or agents of either in the performance of this Grant Agreement. However, this clause shall not be construed to waive A.C.A. § 21-9-301 (1991 Supp.). 22. SEVERABILITY. If any provision under this Grant Agreement or its application to any person or circumstances is held invalid by any court of competent jurisdiction, this invalidity does not affect other provisions of the Grant Agreement which can be given effect without the invalid provision. 23. PERFORMANCE. The Grantor's failure to insist upon the strict performance of any provision of this contract or to exercise any right based upon breach thereof or the acceptance of any performance during such breach, will not constitute a waiver of any nghts under this Grant Agreement. 4 AR ECON DEVLPMT COMMSN Fax 501-b82-7496 Jan 26 '9S 11:23 P.05 24. ENFORCEMENII'.Uthe Grantor determines that a Grantee'sserformance fails to meet the terms and conditions of its Grant Agreement, several courses of action may be pursued in order to resolve the problem. The Grantor may take any of the following actions, severally or in combination: (a) Request additional information from the Grantee to verify the nature of inadequate performance; (b) Conduct a site visit to examine pertinent records and recommend remedial cause of action; (c) Issue a letter of warning, advising the Grantee of the deficiency, recommendations for corrections, date by which performance must be corrected and notice that more serious sanctions may be imposed if the situauon continues or is repeated; (d) Suspend funding of questioned activities until remedies are effected; (e) Establish sanctions upon Grantee, Administrator, Engineer/Architect or Sub Contractor. This sanction will be for a period of not less than one year but not more than five years. Require reimbursement of funds improperly spent; or (f) Refer the marter to the Attorney General of Arkansas with a recommendation that a civil action be instituted. 25. AUDIT. The Grantee will be responsible for the conduct of a financial and compliance audit within a reasonable period after completion of project activities. Such audit must be performed by a certified public accountant whose services are secured through open, competitive bidding process or during the course of an audit conducted by staff of the Legislative Joint Audit Committee. The Grantor reserves the right to recover any unspent or questioned balance of grant fiords, if any, from the Grantee after final audit. 26. CLOSE-OUT. The Grantor will advise the Grantee to initiate close-out procedures when the Grantor determines, in consultation with the Grantee, that there are no impediments to close-out and that the following criteria have been met or soon will be met: (a) All costs to be paid with grant funds have been incurred with the exception of any unsettled third party claims against the Grantee. Costs are incurred when goods and services are received and/or contract work is performed; (b) The last required progress report have been submitted. The Grantee's failure to submit or update will not preclude the Grantor from effecting close-out if it is deemed to be in the State's interest. Any excess grant amount which may be in the Grantee's possession will be returned in the event of the Grantee's failure to furnish or update the report; and Other responsibilities of the Grantee under this Grant Agreement and any close-out agreement, and applicable laws and regulations appear to have been carried out satisfactorily or there is no further State interest in keeping the grant open for the purpose of securing performance. 27. The Grantee agrees, as a condition of receiving grant assistance to abide by and adhere to any policy directives, rules, regulations or other requirements which may be issued from time to time by the Grantor, and which in the opinion of the Grantor are necessary to efficient or legal execution of the project. 28. The Grantee agrees to see that all work is performed and completed in a manner consistent with timelines established at the Grants inception. Failure to meet these timelines without acceptable justification may result in sanction and or deobligation of funding to Grantee and/or Sub Contractors. (c) 5 RR EON DEVLPMT COMMSN Fax:501-682-7499 1 Jan 26 '99 11:23 P. 06 • • PART III SCOPE OF WORK, SPECIAL CONDITIONS, BUDGET, AND PROJECT SCHEDULE Grantee: City of Fayetteville Control #: ETF 9810 SECTION - SCOPE OF WORK Amendment # N/A .Amendment Date N/A The project described more fully herein, consists of a grant to the Grantee for the purpose of providing the initial start-up financing to establish the Northwest Arkansas Aviation Technologies Center ("NWAATC") at Drake Field in Fayetteville. The NWAATC will utilize the grant funds to establish an Aviation Maintenance Technology Program, which will be certified under the Federal Aviation Administration (FAA) - Regulation 147 (see Exhibit A) for training of airframe and powerplant mechanics (A&P) The location of the NWAATC is shown on the project map, which is attached hereto and incorporated herein by reference. Northwest Arkansas Aviation Technologies Center NWAATC) The NWAATC is a new private non-profit corporation established to develop and implement a broadly based workforce development program which has. as its focus, the teaching of highly technical skills required by the FAA for cerufication of people to work on aircraft. The Grantee will provide the EIF grant funds to the NWAATC to establish an Aviation Maintenance Technology Program (A&P) at Drake Field in Fayetteville. The NWAATC will be responsible for expending grant funds consistent with grant budget and providing any and all financial and program reporting required by the Grantee and Grantor. The NWAATC will provide an audit of any grants funds received on an annual basis until all funds are expended. The three-phase curriculum, consisting of 1,960 hours of instruction, is designed to provide graduates with hi technical skills required by the aviation and aerospace industry, but such skills are widely applicable to all industries. The first general phase provides students with training in mathematics, physics, electricity, fluids, corrosion control, materials and processes. The second airframe phase teaches sheet metal and structures, finishes, welding, rigging, gear systems, hydraulic and pneumatic power systems, atmosphere control, electronics and instruments, commurucation and navigation systems, fuel systems and fire protection systems. The third phase powerplant curriculum provides technical instruction in powerplant theory and maintenance, including instruments, fire protection, electrical systems, lubrication systems, ignition and starting systems, induction and airflow systems, fuel systems, cooling systems, and exhaust systems. The NWAATC is designed to accommodate 150 students. Course work is expected to last 15 months for day sessions and 18 months for night sessions. Job Creation Ozark Aircraft Systems (OAS) — Aircraft Engineering and Modification Center at the new Northwest Arkansas Regional Airport began operations in late 1998 and has identified a need for 110 employees initially. Ninety (90) of these employees will work in the areas of electrical and sheetmetal fabncation and installation. OAS expects a 20% increase in staff per year and reach total employment of 500 within three years and 1,200 within eight years. 6 RR Ec0N DEVLPMT CC�MMSN Fax:501-582-7499 • Grant Expenditures Jan 26 '99 11:24 P. 07 A total of $1,800,000 in ElF grant funds may be used for the following costs of implementing the A&P Program through the N'AATC. Costs are associated with the initial 18 -month implementation of the program. 1) Equipment.............................................................................5450,000 a) General Section: Electrical Lab, Computer Lab, Training Aids and Support Materials - S46,000 b) Airframe Section: Sheetmetal Shop. Composite Lab, Hydraulics and Pneumatics Lab, Landing Gear and Electrical Lab - $108,000 c) Powerplant Section: Reciprocal Engine Shop, Turbine Engine Shop, Fuel and Ignition Systems Lab - $124,000 d) Aircraft -$114,000 e) Tool Room and Support Equipment - $12,000 f) Technical Staff and Student Support Materials - $46,000 2) Program Certification and Documentation......................................$400,000 Curriculum and Operational Manuals, Lesson Plans and Project Guides, Course Test Banks, Students Records, Marketing Materials. And High School Program. 3) Instruction Management and Oversight .........................................$950,000 18 month Design, Build, Operate and Transfer of Management AR ECON DBJLPMT C�1MSN Fax:501-082-7490 • Jan 26 '99 11:24 P. 08 SECTION B - SPECIAL CONDITIONS Grantee: City of Fayetteville Control M: ElT~ 9810 1. The Grantee shall ensure that all Requests for Payment are accompanied by invoices, which have been approved by the Grantee and/or the NWAATC. This documentation must accompany each Request for Payment before the Grantor will honor the Request. 2. The Grantee must conduct an audit of the ELF grant funds, at project completion and submit a copy of the audit to the Grantor for review. 3. For the three-year period following the implementation of the A&P Program, the Grantee must provide information regarding the enrollment of students in the school and placement of graduates of the A&P Program. This information should include: a) Total number of students enrolled in the school by class year; b) Total number of students graduating from the school by class year; c) Total number of students placed in A&P related employment; d)Total number of students placed in non-A&P related employment; and e)Total in -state vs out-of-state placements. RR ECON DEWPMT q]WSN Fax:501-082-7499 • Jan 26 '99 1125 P. 09 SECTION C - BUDGET Grantee: City of Fayetteville Amendment: t# Grant Control #EIF 9810 Category: Economic Development Activity: Training Source of Funds Cost Classification Sub -Costs ADED Cost Classification Total Equipment $ 450,000 1 S 450,000 Program Certification/ Documentation 400,000 400,000 Instruction Management/ Oversight 950,000 950,000 Totals 151,800,000 S1,800,000 4i RR ECON DEVLPMT CQMMSN Fax:501-682-7490 Jan 26 '99, • 11 :Q5 P.10 C uc Federal Avlatlon AdmM stratton EXHIBIT A Advisory Circular AC 147-3 5/22/91 Certification And Operation Of Aviation Maintenance Technician Schools initiated by: a°5-340 AR EON DEVLPMT COMMSN Fax:501-682-7499 Part , Appendix 8 (ii) Development of sufficient manipulative skill to perform basic operations. (iii) Instruction by lecture, demonstration. discussion, and limited practical application. (3) Level 3 requires: (i) Knowledge of general principles, and performance of a high degree of practical application. (ii) Development of sufficient manipulative skills to simulate return to service. (iii) Instruction by lecture, demonstration, discussion, and a high degree of practical application. (c) Teaching materials and equipment. The curriculum may be presented utilizing currently accepted educational materials and equipment, including, but not limited to: calculators, computers, and audio-visual equipment. (Arndt. 147-2. 35 FR 5534. Apr. 3, 1970. as amended Sy Arndt 147-5, 57 FR 29960, June 29. 1992) APPENDIX B TO PART 147 —GENERAL CURRICULUM SUBJECTS This appendix lists the subjects required in at least 400 hours in general curriculum subjects. The number in parentheses before each item listed under each subject heading indicates the level of proficiency at which that item must be taught. Teaching level A. BASIC ELECTRICITY (2) 1. Calculate and measure capactance and inductance. (2) 2. Calculate and measure electrical power. (3) 3. Measure voltage. current, resistance and continuity. (3) 4. Determine the relationship of voltage. current, and resistance in electrical circuits. (3) 5. Read and interpret aircraft e!ectrical circuit diagrams. including solid state devices and logic functions. (3) 6. Inspect and service batteries B. AIRCRAFT DRAWINGS (2) 7. Use aircraft drawings, symbols, and system schematics. (3) 8. Draw sketches of repairs and alterations. (3) 9. Use blueprint information. (3) 10. Use graphs and charts. Jan 26 99 11:45 P.11 Federal Aviation Regulations C. WEIGHT AND BALANCE (2) 11. Weigh aircraft (3) 12. Perform complete weight -and -balance check and record cata. D. FLUID LINES AND FITTINGS (3) 13. Fabricate and install rigid and flexible fluid lines and fittings. E. MATERIALS AND PROCESSES (1) 14. Identify and select appropriate nondestructive testing methods. (2) 15. Perform dye penetrant, eddy current ultrasonic, and magnetic particle inspections. (1) 16. Perform basic heat -treating processes. (3) 17. Identify and select aircraft hardware and materials. (3) 18. Inspect and check welds. (3) 19. Perform precision measurements. F. GROUND OPERATION AND SERVICING (2) 20. Start, ground operate, move, service. and secure aircraft and identify typical ground operation hazards. (2) 21. Identify and select fuels. G. CLEANING AND CORROSION CONTROL (3) 22. Identify and select cleaning materials. (3) 23. Inspect, identify, remove, and treat aircraft corrosion and perform aircraft cleaning. H. MATHEMATICS (3) 24. Extract roots and raise numbers to a given power. (3) 25. Determine areas and volumes of various geometrical shapes. (3) 26. Solve ratio, proportion, and percentage problems. (3) 27. Perform algebraic operations involving addition, subtraction, multiplication, ar.d division of positive and negatve numbers. I. MAINTENANCE FORMS AND RECORDS (3) 28. Write descriptions of work performed including aircraft discrepancies and corrective actions using typical aircraft maintenance records. (3) 29. Complete required maintenance !orris. records, and inspection reports. . 1'r' e RR ECON DEVLPMT COMMSN Fax:501-682-7499 Part 147: Aviation Mainten3hce Schools Jan 26 '99, 11:26 P.12 •art 147, Appendix C J. BASIC PHYSICS (2) 9. Inspect finishes and identify defects. (2) 30. Use and understand the principles of simple machines: sound, fluid, and heat dynamics; basic aerodynamics; aircraft structures: and theory of flight. (2) K. MAINTENANCE PUBLICATIONS (3) 31. Demonstrate ability to read, comprehend. and apply information contained in FAA and manufacturers' aircraft maintenance specifications, data sheets, manuals, publications, and related Federal Aviation Regulations, Airwcrthines Directives, and Advisory material. (3) 32. Read technical data. L. MECHANIC PRIVILEGES AND LIMITATIONS (3) 33. Exercise mechanic privileges within the limitations prescribed by part 65 of this chapter. [Andt 147.2. 35 FR 5534. Apr. 3, 1970, as amended by Anti 147-S, 57 FR 29960, June 29. 1992] APPENDIX C TO PART 147 —AIRFRAME CURRICULUM SUBJECTS This appendix lists the subjects required in at least 750 hours of each airframe curriculum, in addition to at least 400 hours in general curriculum subjects. The number in parentheses before each item listed under each subject heading indicates the level of proficiency at which that item must be taught. I. Airframe Structures Teaching level A. WOOD STRUCTURES (1) 1. Service and repair wood structures. (1) 2. Identify wood defects (1) 3. Inspect wood structures B. AIRCRAFT COVERING (1) 4. Select and apply fabric and fiberglass covering materials (1) 5. Inspect, test, and repair fabric and fiberglass. C. AIRCRAFT FINISHES (1) 6. Apply trim, letters, and touchup paint. (2) 7. Identify and select aircraft finishing materials. (2) 8. Apply finishing materials. 0. SHEET METAL AND NON-METALLIC STRUCTURES 10. Select, install, and remove special fasteners for metallic, bonded, and composite structures. 11. Inspect bonded structures. 12. Inspect, test, and repair fiberglass, plastics, honeycomb, composite, and laminated primary and secondary structures. 13. Inspect, check, service, and repair windows, doors, and interior furnishings. 14. Inspect and repair sheet -metal structures. 15. Install conventional rivets. 16. Form, lay out, and bend sheet metal. E. WELDING (1) 17. Weld magnesium and titanium. (1) 18. Solder stainless steel. (1) 19. Fabricate tubular structures. (2) 20. Solder, braze, gas -weld, and arc -weld steel. (1) 21. Weld aluminum and stainless steel. F. ASSEMBLY AND RIGGING (1) 22. Rig rotary -wing aircraft. (2) 23. Rig fixed -wing aircraft. (2) 24. Check alignment of structures. (3) 25. Assemble aircraft components, including flight control surfaces. (3) 26. Balance, rig, and inspect movable primary and secondary flight control surfaces. (3) 27. Jack aircraft. G. AIRFRAME INSPECTION (3) 28. Perform airframe conformity and airworthiness inspections. II. Airframe Systems and Components Teaching level A. AIRCRAFT LANDING GEAR SYSTEMS (3) 29. Inspect. check, service, and repair landing gear, retraction systems. shock struts, brakes, wheels, tires, and steoring systems. ■ ASA 1995 655 AR EC0N DEVLPMT C0MMSN Fax:501-682-7499 Part 147, Appendix C� Jan 26 '99, 11:26 P.13 Fetal Aviation Regulations B. HYDRAULIC AND PNEUMATIC POWER SYSTEMS (2) 30. Repair hydraulic and pneumatic power system components. (3) 31. Identify and select hydraulic fluids. (3) 32. Inspect, check, service, troubleshoot. and repair hydraulic and pneumatic power systems. C. CABIN ATMOSPHERE CONTROL SYSTEMS (1) 33. Inspect, check, troubleshoot, service, and repair heating, cooling, air conditioning, pressurization systems, and air cycle machines. (1) 34. Inspect, check, troubleshoot, service. and repair heating, cooling, air- conditioning, and pressurization systems. (2) 35. Inspect, check, troubleshoot, service and repair oxygen systems. D. AIRCRAFT INSTRUMENT SYSTEMS (1) 36. Inspect, check. service, troubleshoot and repair electronic flight instrument systems and both mect:anical and electrical heading, speed, altitude, temperature, pressure, and position indicating systems to include the use of built-in test equipment. (2) 37. Install instruments and perform a static pressure system leak test. E. COMMUNICATION AND NAVIGATION SYSTEMS (1) 38. Inspect, check, and troubleshoot autopilot servos and approach coupling systems. (1) 39. Insrpect, check, and service aircraft electronic communications and navigation systems, including VHF passenger address interphones and static discharge devices, aircraft VOR. ILS, LORAN. Radar beacon transponders, flight management computers, and GPWS. (2) 40. Inspect and repair antenna and electronic equipment installations. F. AIRCRAFT FUEL SYSTEMS (1) 41. Check and service fuel dump systems (1) 42. Perform fuel management transfer, and defueling. (1) 43. Inspect, check, and repair pressure fueling systems. (2) 44. Repair aircraft fuel systems components. (2) 45. Inspect and repair fluid quantity indicating systems. (2) 46. Troubleshoot. service, and repair fluid pressure and temperature warning systems. (3) 47. Inspect, check, service, troubleshoot, and repair aircraft fuel systems. G. AIRCRAFT ELECTRICAL SYSTEMS (2) 48. Repair and inspect aircraft electrical system components; crimp and splice wiring to manufacturers' specifications; and repair pins and sockets of aircraft connectors. (3) 49. Install, check, and service airframe electrical wiring, controls, switches, indicators, and protective devices. (3) 50.a. Inspect, check, troubleshoot, service and repair alternating and direct current electrical systems. (1) 50.b. Inspect, check, and troubleshoot constant speed and integrated speed drive generators. H. POSITION AND WARNING SYSTEMS (2) 51. Inspect, check and service speed and configuration warning systems, electrical brake controls, and anti-skid systems. (3) 52. Inspect, check, troubleshoot, and service landing gear position indicating and warning systems. I. ICE AND RAIN CONTROL SYSTEMS (2) 53. Inspect, check, troubleshoot, service, and repair airframe ice and rain control systems. J. FIRE PROTECTION SYSTEMS (1) 54. Inspect, check, and service smoke and carbon monoxide detection systems. (3) 55. Inspect, check, service, troubleshoot. and repair aircraft fire detection and extinguishing systems. (AmdL 147.2, 35 FR 5535. Apr, 3. 1970, as amenced by Arndt. 147-5, 57 FR 23960, June 29. 1992j APPENDIX D TO PART 147—POWERPLANT CURRICULUM SUBJECTS This appendix lists the subjects required in at least 750 hours of each powerplant curriculum, in addition to at least 400 hours in general curriculum subjects. 656 ASA 1995 AR ECON DEVLPMT COMMSN Fax :501 -682 -?4g9 part 147: Aviation Maintert�e Schools Jan 26 ' 99, 1127 P.14 Sit 147, Appendix D The number in parentheses before each item listed under each subject heading indicates the (2) level of proficiency at which that item must be (2) taught. I. Powerplant Theory and Maintenance (3) Teaching level A. RECIPROCATING ENGINES (2) (1) 1. Inspect and repair a radial engine. (2) 2. Overhaul reciprocating engine. (2) (3) 3. Inspect, check, service, and repair reciprocating engines and engine installations. (3) (3) 4. Install, troubleshoot, and remove reciprocating engines. (1) B. TURBINE ENGINES (2) 5. Overhaul turbine engine. (3) 6. Inspect, check, service, and repair turbine engines and turbine engine Installations. (1) (3) 7. Install, troubleshoot, and remove turbine engines. (2) C. ENGINE INSPECTION (2) (3) 6. Perform powerplant conformity and air worthiness inspections. (3) I1. Powerplant Systems and Components Teaching level A. ENGINE INSTRUMENT SYSTEMS (2) 9. Troubleshoot, service, and repair electrical and mechanical fluid rate -of - flow indicating systems. (3) 10. Inspect,'check, service, troubleshoot, and repair electrical and mechanical engine temperature, pressure, and r.p.m. indicating systems. B. ENGINE FIRE PROTECTION SYSTEMS (3) 11. Inspect, check, service, troubleshoot, and repair engine fire detection and extinguishing systems. C. ENGINE ELECTRICAL SYSTEMS (2) 12. Repair engine electrical system components. (3) 13. Install, check, and service engine electrical wiring, controls. switches. indicators, and protective devices. ASA 1995 D. LUBRICATION SYSTEMS 14. Identify and select lubricants. 15. Repair engine lubrication system components. 16. Inspect, check, service, troubleshoot, and repair engine lubrication systems. E. IGNITION AND STARTING SYSTEMS 17. Overhaul magneto and Ignition harness. 18. Inspect, service, troubleshoot, and repair reciprocating and turbine engine ignition systems and components. 19.a. Inspect, service, troubleshoot, and repair turbine engine electrical staring systems. 19.b. Inspect, service, and troubleshoot turbine engine pneumatic starting systems.. F. FUEL METERING SYSTEMS 20. Troubleshoot and adjust turbine engine fuel metering systems and electronic engine fuel controls. 21. Overhaul carburetor. 22. Repair engine fuel metering components. 23. Inspect, check, service, troubleshoot, and repair reciprocating and turbine engine fuel metering systems. G. ENGINE FUEL SYSTEMS (2) 24. Repair engine fuel system components. (3) 25. Inspect, check, service, troubleshoot. and repair engine fuel systems. H. INDUCTION AND ENGINE AIRFLOW SYSTEMS (2) 25. Inspect, check, troubleshoot. service and repair engine ice and rain control systems. (t) 27. Inspect, check, service, troubleshoot and repair heat exchangers, superchargers and turbine engine airflow and temperature control systems. (3) 28. Inspect, check. service, and repair carburetor air intake and Induction manifolds. 657 PR EC0N Part 147, Appendix D Fax :5O1 -S82-74'9 • Jan 26 '99 11:27 P. 1 Federaiation Regulations I. ENGINE COOLING SYSTEMS (3) (2) 29. Repair engine cooling system components. (3) 30. Inspect, check, troubleshoot. service, and repair engine cooling systems. (3) J. ENGINE EXHAUST AND REVERSER (3) SYSTEMS (2) 31. Repair engine exhaust system components. (3) 32.a. Inspect, check, troubleshoot. service, and repair engine exhaust systems. (1) 32.b. Troubleshoot and repair engine thrust reverser systems and related components. K PROPELLERS (1) 33. Inspect, chedk, service, and repair propeller synchronizing and Ice control systems. (2) 34. Identify and select propeller lubricants. (1) 35. Balance propellers. (2) 36. Repair propeller control system components. (1) 37. Inspect, check, service, and repair fixed -pitch, constant- speed, and feathering propellers, and propeller governing systems. 38. Install, troubleshoot, and remove propellers. 39. Repair aluminum alloy propeller blades. L. UNDUCTED FANS 40. Inspect and troubleshoot unducted fan systems and components. M. AUXILIARY POWER UNITS (1) 41. Inspect, check, service, and troubleshoot turbine -driven auxiliary power units. (Sea 6(c). Dept. of Transpcnation Act 49 U.S.C. 1855(c))) (Arndt 147-2. 35 FR 5535, Apr. 3. 1970. as amended by And. 147.5. 57 FR 28981, June 29. 1992) 658 ASA 1945 Request for Financial Assistance WORKFORCE DEVELOPMENT AND JOB OPPORTUNITY Northwest Arkansas Aviation Technologies Center Knowledge, The Next Frontier. "Arkansas' robust economy needs the sustenance of better educated citizens who can work in technology -based industries," Governor Huckabee said as he addressed the opening of his Summit on Economic Development on June 9, 1998.' The Governor continued to tell Summit participants that state government doesn't have the answers; the answers will come from the insights that have made your businesses, your enterprises, as successful as they are. Arkansas, he said, must find a way to replace manufacturing jobs that pay minimum wage - many of which are leaving for developing countries - with technology or knowledge -based jobs. "We can't muddle along doing things the way we've been doing them. We need to raise the standard of living instead of maintaining an inadequate one. We have not had the focus on technology that we intend to have," the Governor concluded. On Thursday, November 20, 1997, the Governor announced that Barbara Pardue would lead the Arkansas Economic Development Commission (AEDC). At the announcement news conference, Ms. Pardue stated that she "would like to have a business plan for the agency, with a clear vision of where we want to go and the strategy for how we're going to get there."The hint of that strategy surfaced the next day as Ms. Pardue and the Commission met at Fort Smith and heard a report that the two-year colleges in Arkansas had begun to coordinate workforce development resources and to look at now those resources can be used more efficiently to help businesses and industries train and educate employees. Five short months later, the new business plan and strategy came into sharp focus when Ms. Pardue told the Commission at its meeting on April 16, 1998, in Fayetteville, that "Education is the key to economic development. We've got to educate our students in areas that are meaningful and marketable. We need to make sure kids understand that having ajob in Arkansas is a benchmark, something to be proud of" 3 The best asset Arkansas can offer is a well -trained work force, she said. Pardue noted that partnerships that bring together educators, businessmen and students are in place in 12 communities, and those partnerships have worked so well that similar alliances are being considered on a regional level. Pardue further noted that funding for workforce development projects is being studied, and a recommendation on AEDC's role will be forthcoming. Hopefully, AEDC's role will mirror the Governor's comment at the Economic Development Summit, "It takes a lot less money to do it right than it does to do it over." The Morning News of Northwest Arkansas. June 10, 1998 Arkansas Business, December 1, 1997 The Morning News of Northwest Arkansas, April 17, 1998 I. 2. Teamwork for the 21" Century. Since its inception, the Northwest Arkansas Council has advocated the establishment of public and private partnerships which would enhance the region's economic well-being through the development of improved infrastructure, the creation of new job opportunity within high technology industries, and the implementation of training programs which provide our people with the skills required to secure the higher paying jobs of the future. In his letter of August 27, 1997, to the Northwest Arkansas Alliance for Higher Education, an association consisting of the University of Arkansas, John Brown University, Northwest Technical Institute, and Northwest Arkansas Community College, the Council's Chairman John Paul Hammerschmidt suggested the creation of a new partnership between education and industry to pursue the implementation of an industry -driven curriculum in the fields of aviation maintenance technology, avionics, electronics, and such other industrial technology as may be mutually agreeable. The Alliance, in keeping with its mission to encourage, facilitate and promote cooperation among the member institutions so as to best meet the educational needs of students and citizens in a productive manner, enacted its resolution of support for the workforce development and training program concept, and the institutions stated their desire to participate in instruction and training activities wherever appropriate to each institution's mission and resources. Feeling the double-edged backlash of a declining number of skilled employees and increasing demands for a highly skilled workforce, local industry leaders in November, 1997, formed a consortium, Synergy-Tech/Northwest Arkansas Industries for Education, to help meet the educational and training needs of the region's industries. "To remain competitive, we must constantly educate and train our work force," said Sheryl Crisler, human resources manager for Pratt & Whitney. "Industry leaders recognize the need for continuous teaching and training in our environment to create a better work force."' Synergy -Tech received state funding to build a training center near the Northwest Technical Institute to offer a curriculum based on the specific needs of area industries and businesses, including hands-on training of entry level workers and upgrading skills of current employees. Building on these beginnings, and taking this training to the next level, a new private non- profit corporation, the Northwest Arkansas Aviation Technologies Center, has been created to develop and implement a broadly based workforce development program which has, as its focus, the teaching of highly technical skills required by the Federal Aviation Administration for certification of people to work on aircraft. Such a training program, measured by the stringent federal requirements which protect the public safety of air travel, requires the highest level of training standards. High standards, outstanding graduates, productive employees for all industries which require a high level of skills. That's the future. Together, we can prepare Arkansas for Tomorrow's Jobs. ° The Morning News of Northwest Arkansas, November 23, 1997. 3. Northwest Arkansas Aviation Technologies Center. The Northwest Arkansas Aviation Technologies Center (ATC) is designed to bring a new technology to Northwest Arkansas. It's focus is driven by the desire to deliver to Arkansas citizens the highest level of skills training possible. That's why the Center, and its Board of Directors chaired by Mark Simmons, decided to pursue the development of an Aviation Maintenance Technology Program which would be certified under the Federal Aviation Regulation 147 (FAR -147) for the training of airframe and powerplant mechanics The three phase curriculum, consisting of 1,960 hours of instruction as set forth in Exhibit A, is designed to provide graduates with the highly technical skills required by the aviation and aerospace industry, but such skills are widely applicable to all industries. The first general phase provides students with training in mathematics, physics, electricity, fluids, corrosion control, materials and processes. The second airframe phase teaches sheet metal and structures, finishes, welding, rigging, gear systems, hydraulic and pneumatic power systems, atmosphere control, electronics and instruments, communication and navigation systems, fuel systems and fire protection systems. The third phase powerplant curriculum provides technical instruction in powerplant theory and maintenance, including instruments, fire protection, electrical systems, lubrication systems, ignition and starting systems, induction and airflow systems, fuel systems, cooling systems, and exhaust systems. 4. The Opportunities and the Problem. "Aerospace education was one of the biggest issues we ran into when we came up here as a company," said a spokesman for Ozark Aircraft Systems (OAS).5 OAS modifies aircraft, primarily large jets like the Boeing 737 and Airbus A300. Headquartered in Rogers, OAS is constructed the first of seven aircraft hangars planned for OAS at the Northwest Arkansas Regional Airport. Scheduled for completion in December, 1998, the first hangar is a 52,800 square foot structure design to accommodate the Boeing 747. Engineers, managers, marketing personnel and a host of other specialists are needed by the company. Some are already available; others, particularly aircraft mechanics, have to learn their skills elsewhere. In the longer term, we won't be as successful as we could be if the labor force is not educated or trained in the business we're into. People and their positive attitudes were the main reasons cited for bringing OAS to the region, and working with people in the educational system exemplifies that. OAS representatives have been speaking to local educators, talking up the idea of aviation education in Arkansas. "The local response has been phenomenal," they said. Fayetteville school district officials traveled to Tulsa (the closest aviation program is at Tulsa Technology Center through the Tulsa Aviation Education Alliance) to view that aviation technology program. John Davidson, principal of Fayetteville High West Campus said, "We're excited about the prospect of bringing a program to West Campus. There is a good possibility for an outstanding program here; we are very interested." While it is too early to tell if the program could become a reality, Davidson said the Tulsa meeting demonstrated that the dreams we have right now are possible. 5 The Morning News of Northwest Arkansas. November 23, 1997 For the training to be successful, Davidson emphasized, the campus would have to work in partnership with a post -secondary entity like a college, community college, private company, or a non-profit training program. He was enthusiastic about the opportunity for students who complete this training. "We think if we could eventually pull this off, it would attract kids into high paying jobs. In Northwest Arkansas, that's a real need." Dr. Doyle Williams, dean of the UA College of Business Administration, said OAS had already made contributions as co -directors of Partners in Progress. He anticipated student internships with the company, as well as the hiring of more business graduates. "We're real excited about bringing this kind of company to Northwest Arkansas, and the opportunity for graduates, as well as the contributions we see they'll be making to the economic development of the Northwest Arkansas economy," he said. Williams said that, in his four years in Arkansas, this is the first major shift in opportunity he has seen for the area, and felt the need for a cooperative effort. "The more the educational institutions can work together and respond to industry's needs, the greater the opportunity for us to contribute to the economic development of the state and region, and the better for all concerned," Williams concluded. Dr. Otto Loewer, dean of the College of Engineering, said OAS has been a good partner, particularly in hiring engineering graduates and offering higher -paying employment opportunities. "Anything we can do to encourage the creation of these employment opportunities is consistent with what the college of engineering is trying to accomplish," Loewer said. Northwest Technical Institute is stuck in a holding pattern with two state -approved aircraft maintenance programs that lack funding. NTI won approval by the state in 1997 for curricula for both airframe and powerplant maintenance programs, but funding for the expensive programs can't be squeezed out of NTI's existing budget. NTi faces a "catch - 22" in its program plan. While the Federal Aviation Administration must approve the programs before the state will allocate new funding, the federal agency will not approve a program until it is already in operation. The whole problem is the money, says George Burch, director of NTI's business and industry training. "Airplane technology programs are relatively expensive to operate, let alone start. The programs require the purchase of airplanes for hands-on training, and qualified teaching personnel," Burch said.6 From the deans of two colleges at the University to a leading high school principal, the operative word is "opportunity': • opportunity to provide demand driven high technology training; • opportunity to create new jobs, and new career paths for secondary and post secondary students; • opportunity to help existing industry succeed; • opportunity to attract other aviation and aerospace companies to Arkansas by meeting their skilled people requirements. But the problem, as NTI demonstrates, is the "money". 6 The Morning News of Northwest Arkansas, November 23, 1997 5. Request for Financial Assistance. The Northwest Arkansas Aviation Technologies Center (ATC), a private, non-profit corporation, and its Board of Directors, plan to organize, develop, implement and operate an Aviation Maintenance Technology Training Program, commonly referred to as an A&P Program (an acronym for the program's (A)irframe and (P)owerplant curriculum). The A&P Program, once operational, will be supported by tuition and fees charged to its students, thereby ensuring that future appropriation of state funding will not be necessary for continued operation and maintenance of the A&P training program. The ATC has secured and will make available to its students an appropriate level of scholarship funding from private sector foundations, and it will implement industry driven internships and school -to -work programs, to ensure that qualified Arkansas citizens have the opportunity to participate in the skills training program and then join in the future job opportunity that results from such training. However, the ATC has no funding to start the A&P Program. Without financial assistance from the State of Arkansas, the workforce training program will not be implemented, and the opportunity that is currently available will be irretrievably lost. Therefore, the ATC respectfully requests that the State of Arkansas provide grant funds in the amount of $1.8 million to fund start-up costs of program implementation, as follows: Equipment .........................................$ 450,000 General Section: Electrical Lab, Computer Lab, Training Aids and Support Materials - $46,000 Airframe Section: Sheetmetal Shop, Composite Lab, Hydraulics and Pneumatics Lab, Landing Gear and Electrical Lab - $108,000 Powerplant Section: Reciprocal Engine Shop, Turbine Engine Shop, Fuel and Ignition Systems Lab - $124,000 Aircraft -$114,000 Tool Room and Support Equipment - $12,000 Technical Staff and Student Support Materials - $46,000 Program Certification and Documentation .................. $ 400,000 Curriculum and Operational Manuals, Lesson Plans and Project Guides, Course Test Banks, Students Records, Marketing Materials, and High School Program Instruction Management and Oversight .....................$ 950.000 18 Month Design, Build, Operate and Transfer of Management Total Start -Up Cost - 18 -Month Plan ...................... $1.800.000 5.1 Funding Options. The creation of an A&P Program represents a unique blend of economic development, workforce development, and workforce training issues, with special emphasis on aviation and aerospace. Given this unique combination of goals, it appears the project can be funded from three state grant sources: The Economic Infrastructure Fund, the Industry and Aerospace Development Fund, and the Economic Development Fund of Arkansas. 5.2 Funding Methodology. As a private, non-profit corporation, the ATC is ideally structured to own and operate a non-profit workforce training program, and to raise funds from the private sector to finance project operation and maintenance. However, it is ATC's belief that state grant funding can best be facilitated if awarded to a public entity, such as the City of Fayetteville, the Northwest Arkansas Community College, or Northwest Technical Institute, with funding flow to the ATC for project implementation and management. 5.3 Time is of the Essence. The ATC has worked almost a year to arrive at this point of program creation. As part of that effort, the relatively scarce equipment required by the FAA for program certification has been located, and we're ready to purchase the equipment will it is available. The ATC's failure to purchase such equipment, with its limited availability, could result in a prolonged delay in program implementation and a substantial increase in cost. 6. From Dreams to Reality. Moving from dreams to reality requires prudent planning and hard work. Concepts must be explored and tested; alliances must be made; turf battles must be avoided; and the student must be the ultimate winner. The following presents a partial summary of ATC Board decisions which, if implemented, can move the A&P Program to reality. 6.1 Proving Feasibility. In 1997, the ATC contracted with The Sabre Group (TSG), a subsidiary of AMR Corporation and one of the nation's leading creators of A&P Programs, to explore the feasibility of starting a new private, non-profit workforce training program. TSG reported that, indeed, such a program would be successful and provide great benefit to the people of the region and state. The ATC Board of Directors, after extensive review and careful deliberation, concurred with the TSG report, and TSG proceeded to develop a business plan for the development of the A&P Program. Please see Exhibit B -Project Flowchart, and Exhibit C -Business Plan. 6.2 Contracts with Educational Institutions The ATC would intend to enter into contracts for service with the University of Arkansas, John Brown University, Northwest Technical Institute and the Northwest Arkansas Community College for the provision of such course instruction as may be available from such institutions, thereby making the best use of limited resources and avoiding duplication of expenditure. 6.3 Future Decree Programs, The ATC is committed to working with educational institutions and the Departments of Higher Education and Workforce Development to implement programs which result in the award of credit hours and future associate degrees. 6.4 Instructors. To the extent that course instruction or certified instructors are not available within the structure of existing educational institutions, the ATC will recruit nationally to secure the most experienced and qualified individuals to provide workforce training instruction. 6.5 Classroom and Lab Space. The ATC would intend to enter into a lease agreement with the City of Fayetteville for the lease of approximately 18,000 square feet of hangar space at Drake Field to house the initial classrooms and labs of the A&P Program. 6.6 Marketing and Student Recruitment. The ATC will implement a marketing and recruitment program geared to attracting secondary and post secondary students to the training program by demonstrating the opportunities that exist for people to prosper by working in aviation, aerospace and other high technology industries. Special emphasis will be place on recruitment of qualified high school students. 6.7 Career Placement Program, The ATC, working with industry leadership, will develop and implement a career placement program. Student internships will provide hands-on experience, and allow students to earn while they learn. Special emphasis will, once again, be placed on demonstrating to high school students that securing high tech talents will open up productive and rewarding careers in exciting new fields of endeavor. 6.8 Association with Other Arkansas A&P Programs. Arkansas currently supports A&P Programs at Black River Vo-Tech, SAU-Camden, and Pulaski Technical College. The ATC intends to develop and participate in cooperative efforts which enhance the curriculum, instruction, and student placement of all Arkansas A&P programs. This effort has already begun as ATC representatives met in May, 1998, with school leaders at Black Rock and Camden to discuss how we could cooperatively improve our programs. Sharing resources, making scholarships available, placing graduates in good paying jobs; all are examples of what that cooperative strategy can be. 6.9 Scholarships. As we've visited high schools and technical campuses, kids exhibit almost "wide-eyed amazement" as we talk about the possibility that they, too, could work on airplanes. But, almost immediately, you can see doubt cross their minds, as they measure their self-worth or their financial status, and some even confess they can't afford to go to school and give up their jobs at McDonalds. To avoid this waste of human resources, the ATC has secured commitments from the private sector to fund scholarships for those kids who need help. We're going to ensure that qualified Arkansas kids have the financial opportunity to gain the skills training necessary to enter new, high technology careers. Private sector funding makes this part of the dream a reality. 6.10 Employment and Salary Opportunity While many Arkansas employers will benefit from the development of the A&P Program, Ozark Aircraft Systems is the first company which has committed to the creation of new jobs in the aviation field. Based on the OAS letter of June 5, 1998, the company intends to provide the following initial job opportunity during 1999: • 10 Managers / Supervisors $ 38,000 to $ 55,000 / yr • 40 Electrical Fabricators / Installers $ 10.00 to $ 20.00 / hr • 50 Sheetmetal Fabricators /Installers $ 10.00 to $ 18.00 / hr • 10 Clerical Employees $ 8.00 to $ 12.00 / hr • Total - 110 Employees $ 2,418,400 to $4,335,600! yr OAS further states in an additional letter dated May 11, 1998, that the company projects that employment at the company will reach 500 within three years and 1,200 within eight years. Copies of the OAS letters are included as Exhibit D. When these future employment numbers are multiplied by the average weekly earnings of $735.49 for Industry Group 372 -Aircraft and Parts, as reported for December 31, 1997, by the Arkansas Employment Security Division, total annual payroll for this company alone could be $19.1 million within three years and $45.9 million within eight years. But these new high tech jobs won't go to Arkansas kids unless they have the skills this workforce training program can supply. 6.11 Broad -based Industry Benefit. The Sabre Group, in analyzing the feasibility of the A&P Program, made an important statement: "It is a matter of record that approximately thirty percent (30%) of certified technicians (A&P graduates) never enter the aviation field. A&P training probably leads to the best set of vocational skills available in one course of study. As such, graduates are sought by companies and service organizations that place a very high value on versatility of A&P Program graduates."r Without question, industry and the workplace are rapidly becoming more complex; computer controlled equipment has become the norm, not the exception. Yet skilled people are not available to keep that equipment up and running. High skilled job openings remain unfilled, as industry casts a wider and wider net to recruit the knowledge -based talents it needs to compete. That's why the Northwest Arkansas Chambers of Commerce, and companies like Pratt & Whitney, Bekaert Steel, First Brands, Danaher Tools, Preformed Line Products, Marshalltown Tools, Jet Stream Plastic, Tyson Foods, Regional Jet Center, Wal- Mart Stores, Superior Industries, Kawneer Company, and many other premier firms are working together to meet the education and training needs of the region. The A&P Program, with its outstanding course of study, can produce the skilled labor force which will ensure that existing Arkansas industry continues to create new job opportunity for Arkansas citizens. Progress, and the future, are in our hands. Northwest Arkansas A&P Program Business Plan, January 12, 1998. Page 15. As the Governor said in the June issue of The Arkansas Advantage, "It's a lot easier to make progress when we all pull in the same direction." We could not agree more. The Northwest Arkansas Aviation Technologies Center respectfully requests that the leadership of the State of Arkansas not let anything stand between our kids and their dreams. July 10, 1998 Mark Simmons, Chairman Northwest Arkansas Aviation Technologies Center 100 West Center, Suite 300 Fayetteville, Arkansas 72701 February 3, 1999 Fred Hanna, Mayor City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701 4 . 4 p a EXHIBIT A Advisory Circular Federal Aviation Administration AC 147-3 5/22/91 Certification And Operation Of Aviation Maintenance Technician Schools Initiated by: AFS-340 Part , Appendix B (ii) Development of sufficient manipulative skill to perform basic operations. (iii) Instruction by lecture, demonstration, discussion, and limited practical application. (3) Level 3 requires: (i) Knowledge of general principles, and performance of a high degree of practical application. (ii) Development of sufficient manipulative skills to simulate return to service. (iii) Instruction by lecture, demonstration, discussion, and a high degree of practical application. (c) Teaching materials and equipment. The curriculum may be presented utilizing currently accepted educational materials and equipment, including, but not limited to: calculators, computers, and audio-visual equipment. [Arndt. 147-2. 35 FR 5534, Apr. 3, 1970. as amended by Arndt. 147-5,57 FR 28960, June 29, 19921 APPENDIX B TO PART 147 —GENERAL CURRICULUM SUBJECTS This appendix lists the subjects required in at least 400 hours In general curriculum subjects. The number in parentheses before each item listed under each subject heading indicates the level of proficiency at which that item must be taught. Teaching level A. BASIC ELECTRICITY (2) 1. Calculate and measure capacitance and inductance. (2) 2. Calculate and measure electrical power (3) 3. Measure voltage, current, resistance and continuity. (3) 4. Determine the relationship of voltage, current, and resistance in electrical circuits. (3) 5. Read and interpret aircraft electrical circuit diagrams, including solid state devices and logic functions. (3) 6. Inspect and service batteries B. AIRCRAFT DRAWINGS (2) 7. Use aircraft drawings. symbols, and system schematics. (3) 8. Draw sketches of repairs and alterations. (3) 9. Use blueprint information. (3) 10. Use graphs and charts. Federal Aviation Regulations C. WEIGHT AND BALANCE (2) 11. Weigh aircraft. (3) 12. Perform complete weight -and -balance check and record data. D. FLUID LINES AND FITTINGS (3) 13. Fabricate and install rigid and flexible fluid lines and fittings. E. MATERIALS AND PROCESSES (1) 14. Identify and select appropriate nondestructive testing methods. (2) 15. Perform dye penetrant, eddy current, ultrasonic, and magnetic particle inspections. (1) 16. Perform basic heat -treating processes. (3) 17. Identify and select aircraft hardware and materials. (3) 18. Inspect and check welds. (3) 19. Perform precision measurements. F. GROUND OPERATION AND SERVICING (2) 20. Start, ground operate, move, service, and secure aircraft and identify typical ground operation hazards. (2) 21. Identify and select fuels. G. CLEANING AND CORROSION CONTROL (3) 22. Identify and select cleaning materials. (3) 23. Inspect, identify, remove, and treat aircraft corrosion and perform aircraft cleaning. H. MATHEMATICS (3) 24. Extract roots and raise numbers to a given power. (3) 25. Determine areas and volumes of various geometrical shapes. (3) 26. Solve ratio, proportion, and percentage problems. (3) 27. Perform algebraic operations involving addition, subtraction, multiplication, and division of positive and negative numbers. I. MAINTENANCE FORMS AND RECORDS (3) 28. Write descriptions of work performed including aircraft discrepancies and corrective actions using typical aircraft maintenance records. (3) 29. Complete required maintenance forms, records, and inspection reports. 654 ASA 1995 Part 147: Aviation Maintenance Schools J. BASIC PHYSICS Part 147, Appendix C (2) 9. Inspect finishes and identify defects. (2) 30. Use and understand the principles of simple machines; sound, fluid, and heat dynamics; basic aerodynamics; aircraft structures; and theory of flight. (2) K. MAINTENANCE PUBLICATIONS (3) 31. Demonstrate ability to read, comprehend, and apply information contained in FAA and manufacturers' aircraft maintenance specifications, data sheets, manuals, publications, and related Federal Aviation Regulations, Airworthines Directives, and Advisory material. (3) 32. Read technical data. L. MECHANIC PRIVILEGES AND LIMITATIONS (3) 33. Exercise mechanic privileges within the limitations prescribed by part 65 of this chapter. (Andt 147-2. 35 FR 5534, Apr. 3, 1970, as amended by Arndt. 147-5, 57 FR 28960, June 29. 1992) APPENDIX C TO PART 147 —AIRFRAME CURRICULUM SUBJECTS This appendix lists the subjects required in at least 750 hours of each airframe curiculum, in addition to at least 400 hours In general curriculum subjects. The number in parentheses before each item listed under each subject heading indicates the level of proficiency at which that item must be taught. I. Airframe Structures Teaching level A. WOOD STRUCTURES (1) 1. Service and repair wood structures. (1) 2. Identify wood defects (1) 3. Inspect wood structures B. AIRCRAFT COVERING (1) 4. Select and apply fabric and fiberglass covering materials (1) 5. Inspect, test, and repair fabric and fiberglass. C. AIRCRAFT FINISHES (1) 6. Apply trim, letters, and touchup paint. (2) 7. Identify and select aircraft finishing materials. (2) 8. Apply finishing materials. (3) (3) (3) D. SHEET METAL AND NON-METALLIC STRUCTURES 10. Select, install, and remove special fasteners for metallic, bonded, and composite structures. 11. Inspect bonded structures. 12. Inspect, test, and repair fiberglass, plastics, honeycomb, composite, and laminated primary and secondary structures. 13. Inspect, check, service, and repair windows, doors, and interior furnishings. 14. Inspect and repair sheet -metal structures. 15. Install conventional rivets. 16. Form, lay out, and bend sheet metal. E. WELDING (1) 17. Weld magnesium and titanium. (1) 18. Solder stainless steel. (1) 19. Fabricate tubular structures. (2) 20. Solder, braze, gas -weld, and arc -weld steel. (1) 21. Weld aluminum and stainless steel. F. ASSEMBLY AND RIGGING (1) 22. Rig rotary -wing aircraft. (2) 23. Rig fixed -wing aircraft. (2) 24. Check alignment of structures. (3) 25. Assemble aircraft components, including (tight control surfaces. (3) 26. Balance, rig, and inspect movable primary and secondary flight control surfaces. (3) 27. Jack aircraft. G. AIRFRAME INSPECTION (3) 28. Perform airframe conformity and airworthiness inspections. II. Airframe Systems and Components Teaching level A. AIRCRAFT LANDING GEAR SYSTEMS (3) 29. Inspect, check, service, and repair landing gear, retraction systems, shock struts, brakes, wheels, tires, and steering systems. ■ ASA 1995 655 Part 147, Appendix C• Federal Aviation Regulations B. HYDRAULIC AND PNEUMATIC POWER SYSTEMS (2) 30. Repair hydraulic and pneumatic power system components. (3) 31. Identify and select hydraulic fluids. (3) 32. Inspect, check, service, troubleshoot, and repair hydraulic and pneumatic power systems. C. CABIN ATMOSPHERE CONTROL SYSTEMS (1) 33. Inspect, check, troubleshoot, service, and repair heating, cooling, air conditioning, pressurization systems, and air cycle machines. (1) 34. Inspect, check, troubleshoot, service, and repair heating, cooling, air- conditioning, and pressurization systems. (2) 35. Inspect, check, troubleshoot, service and repair oxygen systems. D. AIRCRAFT INSTRUMENT SYSTEMS (1) 36. Inspect, check, service, troubleshoot and repair electronic flight instrument systems and both mechanical and electrical heading, speed, altitude, temperature, pressure, and position indicating systems to include the use of built-in test equipment. (2) 37. Install instruments and perform a static pressure system leak test. E. COMMUNICATION AND NAVIGATION SYSTEMS (1) 38. Inspect, check, and troubleshoot autopilot servos and approach coupling systems. (1) 39. Inspect, check, and service aircraft electronic communications and navigation systems, including VHF passenger address interphones and static discharge devices, aircraft VOR, ILS, LORAN, Radar beacon transponders, flight management computers, and GPWS. (2) 40. Inspect and repair antenna and electronic equipment installations. F. AIRCRAFT FUEL SYSTEMS (1) 41. Check and service fuel dump systems. (1) 42. Perform fuel management transfer, and defueling. (1) 43. Inspect, check, and repair pressure fueling systems. (2) 44. Repair aircraft fuel systems components. (2) 45. Inspect and repair fluid quantity indicating systems. (2) 46. Troubleshoot, service, and repair fluid pressure and temperature warning systems. (3) 47. Inspect, check, service, troubleshoot, and repair aircraft fuel systems. G. AIRCRAFT ELECTRICAL SYSTEMS (2) 48. Repair and inspect aircraft electrical system components; crimp and splice wiring to manufacturers' specifications; and repair pins and sockets of aircraft connectors. (3) 49. Install, check, and service airframe electrical wiring, controls, switches, indicators, and protective devices. (3) 50.a. Inspect, check, troubleshoot, service and repair alternating and direct current electrical systems. (1) 50.b. Inspect, check, and troubleshoot constant speed and integrated speed drive generators. H. POSITION AND WARNING SYSTEMS (2) 51. Inspect, check and service speed and configuration warning systems, electrical brake controls, and anti-skid systems. (3) 52. Inspect, check, troubleshoot, and service landing gear position indicating and warning systems. I. ICE AND RAIN CONTROL SYSTEMS (2) 53. Inspect, check, troubleshoot, service, and repair airframe ice and rain control systems. J. FIRE PROTECTION SYSTEMS (1) 54. Inspect, check, and service smoke and carbon monoxide detection systems. (3) 55. Inspect, check, service, troubleshoot. and repair aircraft fire detection and extinguishing systems. (Amdt. 147-2. 35 FR 5535, Apr. 3, 1970. as amended by Arndt. 147-5. 57 FR 28960, June 29. 1992) APPENDIX D TO PART 147—POWERPLANT CURRICULUM SUBJECTS This appendix lists the subjects required in at least 750 hours of each powerplant curriculum, in addition to at least 400 hours in general curriculum subjects. 656 ASA 1995 Part 147: Aviation Maintence Schools Part 147, Appendix D The number in parentheses before each item D. LUBRICATION SYSTEMS listed under each subject heading indicates the level of proficiency at which that item must be (2) 14. Identify and select lubricants. taught. (2) 15. Repair engine lubrication system components. I. Powerplant Theory and Maintenance (3) 16. Inspect, check, service, troubleshoot. and repair engine lubrication systems. Teaching level E. IGNITION AND STARTING SYSTEMS A. RECIPROCATING ENGINES (2) 17. Overhaul magneto and Ignition (1) 1. Inspect and repair a radial engine. harness. (2) 2. Overhaul reciprocating engine. (2) 18. Inspect, service, troubleshoot, and (3) 3. Inspect, check, service, and repair repair reciprocating and turbine engine reciprocating engines and engine ignition systems and components. installations. (3) 19.a. Inspect, service, troubleshoot, and (3) 4. Install, troubleshoot, and remove repair turbine engine electrical starting reciprocating engines. systems. (1) 19.b. Inspect, service, and troubleshoot B. TURBINE ENGINES turbine engine pneumatic starting (2) 5. Overhaul turbine engine. systems.. (3) 6. Inspect, check, service, and repair turbine engines and turbine engine F. FUEL METERING SYSTEMS installations. (1) 20. Troubleshoot and adjust turbine (3) 7. Install, troubleshoot, and remove engine fuel metering systems and turbine engines, electronic engine fuel controls. (2) 21. Overhaul carburetor. C. ENGINE INSPECTION (2) 22. Repair engine fuel metering (3) 8. Perform powerplant conformity and air components. worthiness inspections. (3) 23. Inspect, check, service, troubleshoot, and repair reciprocating and turbine II. Powerplant Systems and Components engine fuel metering systems. Teaching G. ENGINE FUEL SYSTEMS level A. ENGINE INSTRUMENT SYSTEMS (2) 24. Repair engine fuel system (2) 9. Troubleshoot, service, and repair (3) components. 25. Inspect, check, service, troubleshoot, electrical and mechanical fluid rate -of- and repair engine fuel systems. flow indicating systems. (3) 10. Inspect, check, service, troubleshoot, H. INDUCTION AND ENGINE AIRFLOW and repair electrical and mechanical SYSTEMS engine temperature, pressure, and r.p.m. indicating systems. (2) 26. Inspect, check, troubleshoot, service and repair engine ice and rain control B. ENGINE FIRE PROTECTION SYSTEMS systems. (3) 11. Inspect, check, service, troubleshoot, (1) 27. Inspect, check, service, troubleshoot and repair engine fire detection and and repair heat exchangers. superchargers and turbine engine extinguishing systems. airflow and temperature control C. ENGINE ELECTRICAL SYSTEMS (3) systems. 28. Inspect, check, service, and repair (2) 12. Repair engine electrical system carburetor air intake and induction components. manifolds. (3) 13. Install, check, and service engine electrical wiring, controls, switches, indicators, and protective devices. ASA 1995 657 Part 147, Appendix D I. ENGINE COOLING SYSTEMS (3) (2) 29. Repair engine cooling system components. (3) 30. Inspect, check, troubleshoot, service, (3) and repair engine cooling systems. J. ENGINE EXHAUST AND REVERSER (3) SYSTEMS (2) 31. Repair engine exhaust system components. (3) 32.a. Inspect, check, troubleshoot, service, and repair engine exhaust systems. (1) 32.b. Troubleshoot and repair engine thrust reverser systems and related components. K. PROPELLERS (1) 33. Inspect, check, service, and repair propeller synchronizing and Ice control systems. (2) 34. Identify and select propeller lubricants. (1) 35. Balance propellers. (2) 36. Repair propeller control system components. (1) (1) Federal Aviation Regulations 37. Inspect, check, service, and repair fixed -pitch, constant -speed, and feathering propellers, and propeller governing systems. 38. Install, troubleshoot, and remove propellers. 39. Repair aluminum alloy propeller blades. L. UNDUCTED FANS 40. Inspect and troubleshoot unducted fan systems and components. M. AUXILIARY POWER UNITS 41. Inspect, check, service, and troubleshoot turbine -driven auxiliary power units. (Sea 6(c), Dept of Transportation Act 49 U.S.C. 1855(x))) (Arndt 147-2, 35 FR 5535, Apr. 3, 1970, as amended by Arndt 147-5, 57 FR 28961, June 29. 1992) 658 ASA 1995 • EXHIBIT B • NWA AVIATION TECHNOLOGY CENTER (NWAATC) 511103 \\'*\TC BUSINESS PL\N STATE GRANT REQUEST S450,000 EQUIP. START-UP I $400,000 CERTIFICATION CONTRACT 5950,000 OBI - 18 MO I. APPLICATION 2. CURRICULUM 3. EQ LIST 4. OP NLA-`UAL. 5. FACILITY PLAN 6. CERTIFICATION SPACE UAF-GENESIS AVIATION :NLkNAGEMENT JBU I I UAF PRIVATE SECTOR TUITION FUNDING $5,000,000 - 5 YEARS OPERATE NTI, NWACC, OAS GENERAL HIGH NWACC SCHOOLS BOARD (7) MANAGEMENT AIRFRAME N\V TECH INSTITUTE GRADUATES TUITION & SCHOLARSHIP FUNDING S 1,000,000/YR POWER PLANT N\\' TECH INSTITUTE /99 6/99 1/00 7/00 I/01 7/01 1 /02 7/02 Cumulative Students 20 60 100 140 160 160 Faculty 3 5 7 11 15 15 15 O&M Costs (000) 150 250 350 550 750 750 750 Cl:L.ses 1 3 5 7 H S Exhibit C Northwest Arkansas A&P Program Business Plan This 53 -page exhibit has been included in presentations to Agency staff, but is not included in this package to reduce its size and complexity. • • • D HIBIT D S OURK aIRCRAFT SYSTEMS Mr. Jim Pledger. Chairman Economic Development of Arkansas Fund Commission c/o Joy Pennington 401 Department of Finance & Administration Little Rock, AR 72201 Dear Mr. Pledger: F98-NKA-0121 June 5. 1998 The OAS Aircraft Engineering and Modification Center at the new Northwest Arkansas Regional Airport will open the 41h quarter of 1998. This center will also be the corporate headquarters of Ozark Aircraft Systems, L.L.C. The labor to support this operation will consist of management and skilled aircraft workers. Many of these skilled workers will hold FAA Airframe and Pcwerplant licenses. Of the one hundred ten workers initially required to staff this operation: Salary Ranee • 10 will be Managers/Supervisors - 5:8.000 - $»,000/vr. • 10 will be Clerical - $8.00- S 12.00/hr. * 50 will be Sheet -Metal Fabricators/Installers - $10.00- $18.00/hr. * 40 will be Electrical Fabricators/Installers - $10.00- $20.00/hr. This staff will increase at about 20% a year as the business ;rows. Sincerely. /G:✓L� Keith Arnold President \I :\: :\l, ZE.`-. \ril !-. ( \tnri \'>7 _-:I1 % KF-T F\lt--C\It_r .X -_-•li EXHIBIT F D • • 4'AS a/.u/4 upcuA,7 Src(FV( F93 -V KCA-00,4: May 11. 1993 Mr. Jim Pledger. Chairman Economic Development of Arkansas Fund Commission c:o Joy Pennington -101 Department of Finance & Administration Bldg. Little Rock. Arkansas 72201 Dear Mr. Pledger: Ozark Aircraft Systems. an aircraft engineering and modification company, is the first tenant of the New Northwest Arkansas Regional Airport. (NWARA). Our first hangar at this airport will be complete in November of this year and create over 110 new high-technology jobs in 1998 with employment expected to reach 500 within three years and 1,?00 within eight years. OAS has hired six University of Arkansas Engineering students/graduates since commencing operation in February of 1997 at the Universities Genesis Business Incubator. It is our intent to trainihire as much local Arkansas talent as is possible. To date this has worked well and we see no reason why this will not continue. Cur salaries at the new airport will average S 12.00 per hour for hands on labor and 543.000 per year for salaried/managernent talent. We strongly supports the NWARA and the surrounding communities in recommending the S1.8 million grant be approved :o enable the efficient operation of this new airport. Should you require additional information or have any questions please contact the urdersigned at 1:01) 341-3!44. Sincerely. Keith Arnold President KA:rh 46 FAYETTEmL,LE • THE CITY OF FAVETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Fred Hanna, Mayor From: Dale Frederick, Airport Manager Date: January 26, 1999 re: Lease of hanger at Drake Field to Northwest Arkansas Aviation Technologies Center The Northwest Arkansas Aviation Technologies Center (NAATC) has been awarded a grant by the Arkansas Economic Development Commission to assist in funding an aircraft consti uction and maintenance school. The NAATC has entered into a contract with SABRE to establish and operate the school. The hanger is located at 4248 South School Street. It was previously occupied by Mesa Airlines and has been vacant for the past few years. The Airport Board will review this lease at a called Airport Board meeting. The Airport Board reviewed this lease at a Special Airport Board meeting Monday January 25, 1999 and recommend City Council approval. This agenda item consists of accepting the lease agreement with NAATC and approving a budget adjustment that will establish a project and project funding to accomplish the necessary building improvements the City is responsible for in the lease agreement. The terms of the lease provide for a monthly lease payment of $4,500 with an initial lease term of five (5) years. The lease contain three additional five year terms for a total potential lease term of twenty (20) years. The City is responsible (under the lease terms) to bring the hanger up to current state and local building codes. Specifically, the City is responsible for basic building structure including the floors, walls, ceiling, roof, sprinkler system, all plumbing and fittings thereto, primary electrical circuits, heating, ventilation and air conditioning, maintenance of the existing paved ramp and parking lots, and, perimeter fences. The target date for completion of the all of the building improvements both by the City and the lessee in May I, 1999. The estimated cost of bringing the building into compliance with current building codes is approximately $135,000. The following is a listing of the significant repairs that must be completed prior to utilization of the building. s Work Area Estimate Sprinkler system $26,000.00 Plumbing/ HVAC $26,000.00 ADA Accessibility $15,000.00 Fire Doors and Fire Safe Stairway $28,000.00 Flooring (Carpet, Vinyl Flooring, Concrete) $23,000.00 Other (Electrical, Ceiling Tile, etc) $17,000.00 Total $135,000.00 If you have any questions concerning this agenda item please contact me at 521-4750 extension 6. • STAFF REVIEW FORM XX AGENDA REQUEST CONTRACT REVIEWj GRANT REVIEW For the Fayetteville City Council meeting of February 2, 1999 FROM: pale Frederick Airport General Government Name Division Department ACTION REQUIRED: Approval of a lease with Northwest Arkansas Aviation Technologies Center to lease an executive hanger located at 4248 South School Avenue. The initial lease term is five(5) years with three (3) additional five (5) year lease options. Also requested is a budget adjustment establishing a project budget to perform the necessary building improvements to bring the building up to current building code standards. COST TO CITY: coo $ estimate S -0- NWAATC Hanger Imp Cost of this Request Category/Project Budget Category/Project Name 5550-3960-5804-00 S -0- Airport Capital Account Number Funds Used To Date Program Name 99050-1 S -0- Airport Fund Project Number Remaining Balance Fund BUPGET REVIEW: Budgeted Bbdgdt Coordinator Ac CONTRACT/GRANT/LEASE REVIEW: Accoun nW Man e Date Ci ttor' Date _ _ 1-a19q STAFF E Division Head Date Date Date Mr Date Budget Adjustment Attached S nis[r rive Services Director TF GRANTING AGENCY: Re V Internal Auditor Date ADA Coordinator Date approval of this lease and budget adjustment Cross Reference New Item: Yes No Prey Ord/Res #: Orig Contract Date: C:\APP\99BUDGET\99BUDGET\T.ANHANCE. LSE