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Home My WebLink About28-13 RESOLUTIONRESOLUTION NO.28-13 A RESOLUTION APPROVING THE TERMINATION OF THE FIXED -BASE AIRPORT OPERATIONS CONTRACT WITH WOOLSEY AVIATION INC. DBA MILLION AIR OF FAYETTEVILLE, APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,786,452.00 FOR THE IMPLEMENTATION AND FUNDING OF A CITY -OPERATED FIXED -BASE AIRPORT OPERATION, AND FURTHER APPROVING THE ADDITION OF 6.6 FULL-TIME EQUIVALENT EMPLOYEE POSITIONS IN THE AVIATION DIVISION FOR THE OPERATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the termination of the fixed -base airport operations contract with Woolsey Aviation Inc. dba Million Air of Fayetteville. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "A", in the amount of $1,786,452.00 for the implementation and funding of a city -operated fixed -base airport operation. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves the addition of 6.6 full-time equivalent employee positions in the Aviation Division for the operation. PASSED and APPROVED this 5t' day of February, 2013. APPROVED: ATTEST: By: &k6t� 4��' 469M& SONDRA E. SMITH, City Clerk/Treasurer 0o1en►►►r>>1 ^�; FAYETTEVILLE:�q '%9s•. KANS ..J�`� ��o��''I, , 1 O1 A City .of Fayetteville, Arkansas Budget Adjustment Form Budget Year Division: Aviation I Request Date 2013 1 Department: Transportation Services 2/5/2013 V12.0724 Adjustment Number BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION Funding for implementation of the Airport Fixed Base Operation (FBO) Program including the addition of 6.6 Full Time Equivalent positions in the Aviation Division. 30clget Director ' aJ, CL . Sa,.,w Date .Q ., [ - 25 -;0 3 Budget & Research Type: - A B General Ledger Date Use Only C /15 E P Department Direct& Date Q zo 1'3 Finance Director. Date . 0. . (- 13 -,Xot3 Posted to General Ledger Chief Staff Date Initial Date Checked / Verified Initial Date: . or Date TOTAL BUDGETADJUSTMENT 1,786,452 1,786,452 Increase /'(D.ecrease) , Project.Sub . Account Name Account Number Expense Revenue Number Rent 555G.0955.4450:00 25;000 AVGASrvenues 5550.0955.4456.01 - 208,888 Jet Fuel revenues 5550A955.4456.02 1,422144 FBO sales tax. 55:50.0955.4456.03 1401066. 871VIoGas Revenue 5550.0955.4456,04 12,835 FBO.Accessory Rev 5550.0,955.4995.00 4;000 Miscellaneous revenue 5550.0955.4999.00 2,083 Use of fund balance 5550.0955.4999..99 (28564) Salaries and wages 5550.3955.5100.00 143;855 Overtime 5550.3955.5103.00 1,836 FICA taxes 55150..3955.5105.00> 11,122 Life insurance 5550.3955.5107,00 389 Health insurance 5550.3955.5108.00 191937 LTD insurance 5550.3955.5108.01` 402 ADD insurance 5550.3955.5108.02 33 Workers''comp insurance 5550.3955:5111.00 3,327 HABudget\Budget Adjustments\2013_Budget\Barbara\2013_FBO Budget 1 of 2 City of Fayetteville, Arkansas V12.0724 Budget Adjustment Form Budget Year Division: Aviation Request Date Adjustment Number 2013 Department: Transportation Services 2/5/2013 Office supplies/printing 5550.3955.5200.00 500 Copies and lease 5550.3955.5200.01 833 Cleaning supplies 5550.3955.5203.00 300 Chemicals 5550.3955.5204.00 600 Software 5550.3955.5209:00 150 Minor equipment 5550.3955.5210.00 100 **ADD**Gasoline 5550.3955.5213.00 22,272 Jet fuel 5550.3955.5213.02 1,126,49.E AVGAS 5550.3955.5213.03 182,528 **ADD**Fuel 5550.3955.5213.04 1,250 Parts, oil, accessories 5550.3955.5214.00 .5,190 Public notification 55-50.3955.5301.00 5,000 Uniforms/personal equip 5550.3955.5302.00 1,167 Publications & dues 5550.3955.5303.00 800 Travel & training 5550.3955.$304:00 2,000 Equipment rental 5550.3955.5308.03 46,000 Utilities 'Telephone expense 5550.3955.5310.00 5550.3955.5310.01 5,000 08051 0800 360 Insurance-vehicles/bldgs 5550.3955.5311:00 10,000 Professional services 5550.3955.531:4.00 10,000' Contract services 5550.3955.5315.00 2;617 Bad debt expense 5550.3955.531`9,00 1,000 Credit Card Service Charg, .: 5550.3955.5320.02 50,657 : Employee recognition 5550.3955.5329:00 100 Promotional activities 5550.3955.5342.00: 3,500 Inventory adjustments 5550.3955.5346.00 1,250 Motor pool charges 5550.3955.53:31.00 1,500 a Replacement charges 5550.3955.5331-.01 5,080 Shop Overhead Charges ° 55503955.5331.02 607 *ADD**Shop Overhead Insurance 5550.3955.533-1.03 : 49 Cost allocation. 5550.3955.5399.00 16667 Building & grounds maint 5550.3955.5400.00 61250 Radio maintenance 55,50.3955.5402.00 458 Vehicle &..machine maint 5550.39955.5403:00 5833 Small equipment maint 5550.3955.5407.00 1,000 ONE TIME START-UP EXPENSE **ADD**Vehicles and equipment 5550.3955.5802.00 98,437. 51301 1 2 of 2 City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 2/5/2013 City Council Meeting Date Agenda Items Only Ray M. Boudreaux Aviation Transportation Submitted By Division Department $ 1,786,452.00 $ - ALL Cost of this request Category / Project Budget Program Category / Project Name 5550.3955.VARIOUS $ - Airport Operations Account Number Funds Used to Date Program / Project Category Name $ - Airport Project Number Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached �X Department 2KCtor Date 16tAttorney Date Ck _ . �_ J,_ 123 - 20 t3 Finance and Internal Services Director Date Date D to Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 0 i-iS- i 3 P02:59 Rc Received in City Clerk's Office Received in E Mayor's Office ,2 1 "' Revised January 15, 2009 City Council Meeting of: February 5, 2013 aye evIle Agenda Item Number: AVIATION DIVISION FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO TO: Mayor Jordan THRU: Chief of Staff THRU: Staff/Contract Review Committee gy�pp THRU: Terry Gulley, Transportation Director'dZA FROM: Ray M. Boudreaux, Aviation Director DATE: January 14, 2013 SUBJECT: Approval of Termination of FBO Contract with Woolsey Aviation INC., DBA Million Air of Fayetteville and approval of City staff operation of the FBO in house. Approve a Budget Adjustment. RECOMMENDATION: Approve termination of the contract with Woolsey Aviation Inc., DBA Million Air of Fayetteville for FBO services. Approve a budget adjustment for a City run FBO to create the budget necessary to run the FBO, including 6.6 FTE new employees. BACKGROUND: Woolsey Aviation Inc. has been the FBO at Fayetteville Executive Airport since 2005. The initial five year agreement was renewed in 2010 for an additional ten years. Million Air has performed well until the most recent past when several operational difficulties caused disruption in service. Due to these issues, the Airport Board at their November meeting voted to issue a letter of Termination to Million Air for the good of the parties. Million Air President, Roger Woolsey met with the airport staff and the City Chief of Staff to talk over the potential for the letter to be withdrawn. The Airport Board at their January meeting recommended that the City continue the termination and that the City run the FBO in house. Million Air has struggled to meet the provisions of the contract. Staff believes that termination of the contract is in the best interest of the citizens. Operating in house will maximize the City's opportunity to grow the Airport Fund for airport maintenance and to match grants. BUDGET IMPACT: The attached Budget Adjustment requests new expenses of $1,786,452 and revenues to cover the expenses. Revenues are generated from the sale of fuel, hangar fees, and handling fees. New expenses will be totally supported by the revenue. Revenue and expense budgets are very conservative estimates based on the current expenses experienced by Million Air and our experience from 2002 to 2005. The budget includes a personnel budget to support 6.6 FTE. Attachments: Staff Review Budget Adjustment Organizational Chart Budget 4500`SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 '479:718.7642 -'479.718.7646 FAX • www.accessfayetteville.org/government/aviation airport_economic_development@ci.fayetteville.ar.us RESOLUTION NO. A RESOLUTION APPROVING THE TERMINATION OF THE FIXED -BASE AIRPORT OPERATIONS CONTRACT WITH WOOLSEY AVIATION INC. DBA MILLION AIR OF FAYETTEVILLE, APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $1,786,452.00 FOR THE IMPLEMENTATION AND FUNDING OF A CITY -OPERATED FIXED -BASE AIRPORT OPERATION, AND FURTHER APPROVING THE ADDITION OF 6.6 FULL-TIME EQUIVALENT EMPLOYEE POSITIONS IN THE AVIATION DIVISION FOR THE OPERATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the termination of the fixed -base airport operations contract with Woolsey Aviation Inc. dba Million Air of Fayetteville. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "A", in the amount of $1,786,452.00 for the implementation and funding of a city -operated fixed -base airport operation. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves the addition of 6.6 full-time equivalent employee positions in the Aviation Division for the operation. PASSED and APPROVED this 50' day of February, 2013. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer CITY OF FAYETTEVILLE FAYETTEVILLE EXECUTIVE AIRPORT BUDGET ADJUSTMENT DETAIL BACKUP ACCOUNTNAME Rent - FBO Hangar AVGASRev Life Ins Health Ins LTD Ins ADD Ins Workers' C OffsupPmt Copies&lea CleanSuply Chemicals Software MinorEquip Gasoline Jetfuel AVGAS Fuel PartsOilAc PublNotifi Uniforms/P Pubs/Dues Travel/Tm Equip Rent Utilities Telephone InsVehBldg Prof Sery CntrctSery BadDebtExp CrCardChgs EmpleRecog PromoActiv InventryAd Motor Pool ReplaceChg ShOverhead ShOverheadlns Cost Allocation BldgGmdMt RadioMaint Veh/MachMt SmEquipMt FBO Startup - Capital ACCOUNTNUMBER 5550.0955.4450.00 4450.00 5550.0955.4456.01 4456.01 5550.0955.4466.02 4456.02 5550.0955.4456.03 4456.03 5550.3955.5108.01 5108.01 5550.3955.5108.02 5108.02 5550.3955.5111.00 5111.00 5550.3955.5200.00 5200.00 5550.3955.5200.01 5200.01 5550.3955.5203.00 5203.00 5550.3955.5204.00 5204.00 5550.3955.5209.00 5209.00 5550.3955.5210.00 5210.00 5550.3955.5213.00 5213.00 5550.3 555.5213.02 5213.02 5550.3955.5213.03 5213.03 5550.3955.5213.04 5213.04 5550.3955.5214.00 5214.00 5550.3955.5301.00 5301.00 5550.3955.5302.00 5302.00 5550.3955.5303.00 5303.00 5550.3955.5304.00 5304.00 5550.3955.5308.03 5308.03 5550.3955.5310.00 5310.00 5550.3955.5310.01 5310.01 5550.3955.5311.00 5311.00 5550.3955.5314.00 5314.00 5550.3955.5315.00 5315.00 5550.3955.5319.00 5319.00 5550.3955.5320.02 5320.02 5550.3955.5329.00 5329.00 5550.3955.5342.00 5342.00 5550.3955.5346.00 5346.00 5550.3955.5331.00 5331.00 5550.3955.5331.01 5331.01 5550.3955.5331.02 5331.02 5550.3955.5331.03 5331.03 5550.3955.5399.00 5399.00 5550.3955.5400.00 5400.00 5550.3955.5402.00 5402.00 5550.3955.5403.00 5403.00 5550.3955.5407.00 5407.00 5550.3960. Various INCREASE/DECREASE EXPENSE REVENUE 25,000 208,888 1,422,144 140,066 12,835 4,000 2,083 (28,564) 143,855 1,836 11,122 389 19,937 402 33 3,327 500 833 300 600 150 100 12,272 1,126,495 182,527 1,250 5,190 5,000 1,167 800 2,000 46,000 5,000 360 10,000 10,000 2,617 1,000 50,657 100 3,500 1,250 1,500 5,080 607 49 16,667 6,250 458 5,833 1,000 98,437 1,786,452 1,786,452 PERCENT YEAR 83% 83% 83% 83% 83% 83% 83% 100% 83% 100% 83% 83% 83% 83% 83% 83% 100% 83% 100% 100% 100% 100% 83% 83% 83% 83% 100% 100% 83% 100% 100% 83% 83% 83% 100% 100% 83% 100% 83% 100% 100% 83% 83% 83% 83% 83% 83% 83% 83% 83% 83% 100% ANNUAL BUDGET 30000 250667 1706580 168080 15401.7 4800 2500 172627 1836 13346 467 23925 482 40 3993 500 1000 300 600 150 100 14,727 1351800 219033 1500 5190 5000 1400 800 2000 55200 6000 432 10000 10000 3140 1000 60,789 100 3500 1500 1800 6096 729 59 20000 7,500 550 7,000 1,200 98,437 FBO OPERATION ANNUAL BUDGET EXPENSE REVENUE Acct Numb Acct Name Acct Number Acct Name Proposed ------------------------------------- ------------------------------------- ------------------------------------- ------------------------------------- ACCOUNT CLASSIFICATION EX10 - Personnel Services ACCOUNT CLASSIFICATION RE40 - Charges for services 6.6 FTE 5100 Sal/Wages 172,627 5100.01 SalConting 5103 Overtime 1,836 5105 FICA Taxes 13,346 5107 Life Ins 467 5108 Health Ins 23,925 5108.01 LTD Ins 482 5108.02 ADD Ins 40 5109.06 RetireSavP 5111 Workers' C 3,993 5120 PersSvcCon - TOTALS: 216,716 ACCOUNT CLASSIFICATION EX20 - Materials and Supplies 300JeU45Av 5200 OflSupPmt 500 5200.01 Copies&lea 1,000 5202 ShopSupply - 5203 CleanSuply 300 5204 Chemicals 600 5209 Software 150 5210 MinorEquip 100 5212 Signs - 5213 Gasoline 14,727 5213.02 Jet fuel 2 1,351,800 5213.03 AVGAS 2 219,033 5213.04 Fuel 1,500 5214 PartsOilAc 5,190 5214.01 Tires 3 - TOTALS : 1,594,900 ACCOUNT CLASSIFICATION EX30 - Services and Charges 5301 PublNotifi 5,000 5302 Uniforms/P 1,400 5303 Pubs/Dues 800 5304 Travel/Tm 2,000 5304.99 T&T Advnce - 5307 Audit Exp 5308 Rent - 5308.03 Equip Rent 55,200 5309 Lease Exp - 5310 Utilities 6,000 5310.01 Telephone 432 5311 InsVehBldg 10,000 5311.01 InsCityVeh - 5314 Prof Sery 10,000 5315 CntrctSery 3,140 5319 BadDebtExp 1,000 5320.02 CrCardChgs 60,789 5329 EmpleRecog 100 5342 PromoActiv 3,500 5346 InventryAd 1,500 5372 SlsTaxlnvn - TOTALS: 160,861 ACCOUNT CLASSIFICATION EX33 - Motorpool Charges 5331 Motor Pool 1,800 5331.01 ReplaceChg 6,096 5331.02 ShOverhead 729 5331.03 ShOverheadlns 59 TOTALS: 8,684 ACCOUNT CLASSIFICATION EX39 - Cost allocation 5399 Cost Alloc 20,000 TOTALS : 20,000 ACCOUNT CLASSIFICATION EX40 - Maintenance 5400 BldgGrndMt 7,500 5401 OffMachMt - 5402 RadioMaint 550 5403 Veh/MachMt 7,000 5407 SmEquipMt 1,200 TOTALS: 16,250 300Jet/45Av 4450 Rent - FBO Hangar 30000 4456.01 AVGASRev 250667 4456.02 JetFuelrev, 1706580 4456.03 FBOsalestx 168080 4456.04 87MoGas 15402 4995 FBOAccess 4800 4999 Misc Rev 2500 TOTALS: 2178028 STARTUP CAPITAL EXPENSE - NOT INCLUDED 28.5V GPU 7500 Used Tug 7500 De-icing Rig 5000 Towbars 5000 Lav Cart 3200 Boarding Stairs 17262 Belt Loader 16500 Golf Cart 10000 Signs Banner / Misc 1000 Minor Equip 24V Bat Chgr 300 Minor Equip Fueling Mats 125 Minor Equip Ladders 350 Minor Equip Fire Extinguish 500 Minor Equip Marshaling Wa 200 Minor Equip HAZMAT Matrl 450 Minor Equip Chocks 2500 Minor Equip Air Radios 1200 Minor Equip Cell phone 100 Minor Equip Road cones 400 Minor Equip Fuel Test EquiF 1000 Minor Equip Computers (3) 2000 Minor Equip POS Device 100 Minor Equip Vacuum Clnr 100 Minor Equip Sofas 1200 Minor Equip ArmChairs 900 Minor Equip Tables 500 Minor Equip Decorative Iterr 350 Minor Equip Electronics 3200 Prof Sery Marketing 10000 TOTALS: 98437 Footnotes: 1 No retirement benefit expense in first year. Estimated in future years: $20,751 2 Wholesale fuel cost based on market at 12/12/12. Expense includes delivered cost plus 0.10 flowage fee & Sales Tax liability at resale. 3 Tire expense for refueler trucks. Not included in 2013 budget year. Future year operational expense: $2500 PRORATED 10 MOS 2013 3/1-12/31 (Not Inc Capital) TOTAL ALL 2,017,411 1688015 REVENUE 2,178,028 1815016 NET 160,618 127,001 Minus Current Rent Rcvd 75,584 62,984.15 Minus Flow Fees 34,500 28,748.85 Net Difference AP Fund 50,534 35,268 AIRPORT ORGANIZATION CHART JOB DESCRIPTIONS: Flight Line Operations Supervisor (1 FT): Supervise the Flight Line operation and the Line Technicians in the servicing of aircraft with fuel, oil, air, and the cleaning of windows and interiors. Supervise towing operations, aircraft parking and hangaring, and Line parking schemes. Flight Line Technician (3 FT and 2 PT): Park, fuel, hangar and tie down aircraft. Provide service for the aircraft to include ice, catering, restroom service, baggage loading and unloading. Operate the parking layout to insure safety of aircraft and passengers. Assist passengers and crewmembers. Customer Service Supervisor (1 FT): Supervise the customer service team insuring the highest level of customer care. Meet passengers and care for their needs to include rental cars, catering, hotel arrangements and reservations at destinations. Prepare invoices and receive payments. Input charges and receipts into the accounting system and tract all sales. Insure customer amenities are fully stocked. Customer Service Representative (1 PT): Meet passengers and welcome them to Fayetteville. Care for their needs to include rental cars, catering, hotel arrangements and reservations at destinations. Prepare invoices and receive payments. 01/25/2013 To: City of Fayetteville, City Council Members: Adella Gray, Sarah Marsh, Mark Kinion, Matthew Petty, Justin Tennant, Martin Schoppmeyer, Rhonda Adams, Alan Long CC: Mayor Lioneld Dear Commission Members, I am writing you to ask that you do not vote to move to a City operated, Fixed Base Operation, at the Fayetteville Executive Airport as a reaction to the current Fixed Base Operator's poor performance, lack of fiscal control and contract violations without thoroughly considering my own company, Summit Aviation. Choosing to operate as a "City run" airport, without receiving proposals from other qualified operators would be making a decision without knowledge of your options. This may lead to the wrong long term decision and will certainly at the very least cost the City a significant amount of resources and effort. First let me introduce myself, I am the principal owner and manager of Summit Aviation; we operate the Fixed Base Operations (FBO) at both the Springdale and Bentonville Airports. We currently provide full service FBO operations at both locations, operate two charter operations with 5 aircraft (3 of which are turbine aircraft), operate one of only two Cessna Service Centers in Arkansas and provide flight training in both Springdale and Bentonville with 11 aircraft and 7 instructors. We have a history of success and responding to needs quickly. I have operated in Bentonville for over six years, taking over under critical conditions when a tornado had damaged the airport and the existing operator had effectively "called it quits" after not paying the City it's flowage and lease fees and could not maintain fuel on the field. At Springdale we have been in operation for over two years, successfully transitioning the operation to a profitable model and partnering with the City to grow and provide increased value to our customers. In building both operations I have focused our leadership team on ensuring safe operations, building relationships with our customers to understand their needs, having strong processes and partnering with the Cities of Springdale and Bentonville to grow successfully with aligned visions. "Meeting the Needs of General Aviation in NW Arkansas" Bentonville Airport (KVBT) - 2440 SW Aviation St, Bentonville, AR 72712 479-254-0817 Cessna Springdale School - 479-273-3590 • Service Center - 479-464-0987 5UM�M I T Service Center Springdale Airport (KASG) - 802 Airport Rd, Springdale, AR 72764 479-751-4462 AVIATION Bentonville Flight School - 479-725-0642 www.IFLYsummit.com As your own accounting manager for the airport reports every month, Summit has provided much more value to customers in fuel pricing month after month than Millionaire has been able to provide in Fayetteville. In addition to lower everyday pricing, we provide volume discounts to both based and transient customers beyond the favorable posted prices. In this operation margins are not huge and both the City and the FBO must have a win -win relationship, not a combative one. Using this approach, the Bentonville Airport was just named the Airport of the Year for Arkansas. Over the years Summit Aviation has invested over $500,000 in these airports, all the while paying all lease agreements, flowage fees and payroll on time. We have also continued to invest in our people with all Line personnel now NATA certified. These operations require sound financial management, very controlled overhead and no mistakes to be successful. I would also add that I believe you need an operation that is focused on being involved in Northwest Arkansas and not have a "fly -in" management style operation; success is driven locally through honest investment and work. My appeal to you at this stage is to ask you to take the time to consider Summit as your provider for the Fayetteville Executive Airport; we can provide the following benefits as your chosen provider: • Immediately lower fuel prices to your customers with better discount programs • Save the City from the following investments: o $100,000 in start-up equipment cost o Hiring 6-7 more city employees with benefits creating an ongoing liability o Prevent the City from having to float accounts receivable and fuel inventories at an estimated $150,000 o Training costs of new employees and ongoing responsibility o Risk of Operations • Proven leadership in NWA, my commitment is local and immediate, we can begin immediately • The synergy across three airports would allow the efficiencies to be passed to the customer for additional improvements. Additionally this allows flexibility to move employees to cover special events and promotions at the airport efficiently. • Bring restaurant operations back to the field MW "Meeting the Needs of General Aviation in NW Arkansas" Nr®A� Bentonville Airport (KVBT) - 2440 SW Aviation St, Bentonville, AR 72712 479-254-0817 i Flight School - 479-273-3590 • Service Center - 479-464-0987 5UM4M 1 T CessService Center Springdale Airport (KASG) - 802 Airport Rd, Springdale, AR 72764 479-751-4462 AVIATION Bentonville Flight School - 479-725-0642 www.IFLYsummit.com Operating the fixed base operations require qualified people and training but most of all it requires flexibility at a moment's notice to meet the changing needs of a customer or to make decisions quickly when something is requested out of the norm from standard operations. Typical City operated airports usually fall short in these areas, not because of lack of desire but from normal processes established by city requirements and process. Ultimately the customer sees this as an organization not able to meet their needs. Finally I would ask you to consider risk in your decision; the current budget proposal presented at the last Airport Board meeting recognized a projected "profit" beyond an externally operated FBO arrangement of just under $30,000.1 would submit to you this is a significant investment of a small gain, that any variation in the projected income or margin or expense could eliminate the gain. Further any mistake made by an employee, such as moving an aircraft at night and striking a wall of a hangar is risk to be considered. I challenge you to consider if the benefit is worth the investment. While I will list a few references, I would encourage you to ask your counterparts in Springdale or Bentonville how we have done and if they have confidence in us. References: • Bob McCasslin — City of Bentonville, Mayor • Wyman Morgan — City of Springdale, Mayors Assistant • Warren Jones - Director Arkansas Air Museum • Dick Trammel —Arvest Exec Vice President • Rob Brothers —Walton Family Foundation • John Lea — Retired Tyson Thank you for your time and consideration. Sincerely, David Powell Summit Aviation - Owner "Meeting the Needs of General Aviation in NW Arkansas" :Jr Bentonville Airport (KVBT) - 2440 SW Aviation St, Bentonville, AR 72712 479-254-0817 i Flight School - 479-273-3590 • Service Center - 479-464-0987 5UM�M I T CessnService Center Springdale Airport (KASG) - 802 Airport Rd, Springdale, AR 72764 479-751-4462 AVIATION Bentonville Flight School - 479-725-0642 www.IFLYsummit.com