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09-05-1990 Regular Meeting '. MINUTES OF MEETING Peachtree City Airport Authority September 5, 1990 The Peachtree City Airport Authority met in regular session on Wednesday Night, September 5, 1990, at 7 PM in the City Hall Council Chamber. Members present were: Chairman David Good, Viki Brigham, Blaine Price, John Dennis and Michael Amos. Others present were: Mr. Reed Bull, Mr. Steve Smith, Ms. Patricia Ryan and Mr. Lanny Ryan of Wilbur Smith & Associates; the Authority's Attorney, Doug Warner, City Engineer, Barry Amos and Mr. Jim Savage of Aviation Associates, Inc. Chairman Good called the meeting to order and asked for any additional items for the agenda. Hearing none he called for consideration of minutes for meetings held August 1, August 8, and August 15,1990. Mr. Amos asked for a correction in the August 1st minutes. He pointed out that reference to "Peachtree City Deve 1 oement Authori ty" shoul d be "Peachtree City Development Corporation". Motion was made by Viki Brigham that the minutes of August 1, August 8 and August 15, 1990 be approved with correction as noted. Motion was seconded by Amos. Motion carried unanimously. ,...... WILBUR SMITH & ASSOCIATES f Chairman Good called on consultants Wilbur Smih & Associates for their monthly report and Mr. Reed Bull reported the following: A meeting was held with Jimmy Jones of W. runway and was assured that there would project as scheduled. Bull ~tated that he must finish the runway in sufficient time complete the runway lights before the swap runway to the new runway. Bull reported been located and the mortar color had been mortar was now being used. Invoices were submitted for the following: E. Pruett Company regarding the be no problem in completing the reminded Mr. Jones that they for the electrical contractor to over was made from the existing that the block for the vault had resolved and the correct color W.E. Pruett & Company Wilbur Smith & Associates Aviation Associates $202,849.10 21,636.68 600.00 ".-. , r Mr. Bull reported on total project costs to date and on what had been submitted to the FAA and the State for reimbursement. He stated that he had discovered that the State had not been forwarding their reimbursement to the Authority and he had checked on this. It seemed that several invoices previously submitted had not been received by the State and copies of those had been forwarded to the State at this time. Bull stated that he ~ad .been assured that reimbursement would be forwarded upon receipt of the lnVOlces. Chairman Good called for action on the request for reimbursements from the FAA of $214,207 and $11,156 from the State for invoices reviewed and submitted by Wilbur Smith & Associates as listed above. Motion was made by Price that the reimbursement requests be approved. Motion was seconded by Amos. Motion carried unanimously. Mr. Bull reported that a letter had been received from Mr. Jerry Peterson of Peachtree City Development Corporation agreeing for the Authority to clear trees at the end of the runway in exchange for allowing PCDC to use an area on the Airport property for a dry detention basin. He reported that the Authority's attorney, Doug Warner, was preparing a document for this agreement. AVIATION ASSOCIATES. INC. Chairman Good called upon Mr. Jim Savage of Aviation Associates, Inc. for his final report. Mr. Savage explained that this would be his final report inasmuch as his contract with the Authority had ended. He reported that of the fourteen major projects assigned to his firm during the contract period, only two remain uncompleted. One of the incomplete projects was the underground storage tank removal project. Savage reported that Mr. Gerald Carlson of Field Aircraft Atianta had contacted a consulting firm to drill test wells around the underground storage tank site to monitor ground water. They have notified the EPA and the EPD that they plan to remove the underground auto fuel tank within the next thirty to sixty days. Another project remaining incomplete was the draft of Airport Rules and Regulations. Savage explalned that this remained incomplete awaiting a response from Fields Aircraft Atlanta on Draft #4 and action from the Authority to either modify or adopt that version. Savage reported that all other projects were complete except for photographs of the noise abatement map which are being processed and should be ready by Friday of this week. He reported also that Milton Pate had their professional photographer take photographs of the model of the Aviation Center and samples of these photographs would be made available to the Authority so that they could select any they wished to have made for their use. Savage expressed appreciation, on behalf of Aviation Associates, for the opportunity of demonstrating their ability of performing aviation related tasks to the Authority. He stated that they had enjoyed the relationship and would remain interested in continuing with this project in any way they could assist. Chairman Good thanked Mr. Savage and his firm for the excellent quality of work that had been professionally done and presented to the Authority. Good commented that he had asked Savage to obtain photographs of the Noise Abatement Map, the Master Plan and the Aviation Center in B 1/2 x 11 format in color for all members so that when they have meetings with the public and others they would have these to show them. COMPREHENSIVE FINANCIAL PLAN Good explained that the Consultants had been asked to develop a Comprehensive Financial Plan for the Authority and called on Mr. Steve Smith to present his proposal. Mr. Smith presented a proposal for developing the plan and stated there were six major tasks that they proposed performing for the Authority in the development of this plan. They were: 1. Identify realistic lease opportunities with the terminal facilities and other facilities being proposed. He felt a si$nificant amount of research would be done to determine what the market ln the area would bear, what the going rates were, and explore possible options for the Authority to pursue regarding revenues. 2. Develop comprehensive assessment of the airport operations and maintenance expenses be$inning with the opening of the terminal complex and other aviation facllities. This would take into consideration an airport manager and other staff as well as capital expenses that would ~ be required. 1 i ~ F ~. l ~. ' 3. Explore _potential revenues based on types of lease opportunities primarily. 4. Preparation of a Master Lease Map to be used for potential tenants. 5. Develop draft lease agreements for various lease tenants and proposal documents for interested parties to respond to the Authority. 6. Detail performance statement to be used for solicitation of funding. Mr. Smith stated that approximately six weeks would be required to complete the project once the notice to proceed had been issued. He introduced two additional members of the firm that would be working on this project. They were Lanny and Patricia Ryan. Mr. Smith estimated the cost of preparing the plan to be $32,000. Chairman Good stated that it was evident that the Authority was beginning to see the completion of the construction phase and were beginning to get into the operation of the Airport. He pointed out that in addition to the comprehensive plan a key element was the documents that would go with various leases that would be issued by the Authority. These would be long term leases and it was important that they be well done and well thought out. The plan submittd by Mr. Smith included the preparation of those documents . Chairman Good called for comments from the Authority members. Viki Brigham asked what the Consulting firm could do that the Authority couldn't do for themselves. Mr. Smith basically felt that certain expertise was needed, ,.._'----~--'._.-'--_.,~.,"'-,,~,.~.,'_.,-~..~""..--',- ".,.>....^_.~-.'----,-,---"--_..._..__.__..~..._~-------~~---.__._-_.;~----'~ "...., , partic~lar1y in the area of lease preparation. He felt they had that expertlse. After further discussion a motion was made by Price that the Chairman be authorized to sign a contract with Wilburn Smith & Associates for the preparation of the Comprehensive Financial Plan with the amount to not exceed $32,000. Motion was seconded by John Dennis. Brigham asked if the authority would now wait until the plan was completed before hiring an airport manager. Mr. Smith felt that would be up to the Authority but regardless, their plan would include cost in this area. Price felt that the financial plan would answer questions he had regarding what it would cost for an airport manager. Motion was approved with Viki Brigham voting nay. THROUGH THE FENCE AGREEMENT WITH FIELD AIRCRAFT ATLANTA Chairman Good reported that a series of dicussions and meetings had been held between Field Aircraft representatives, Attorney Doug Warner and himself, in an attempt to help Field through some of their decision processes they are currently involved with in respect to expansion in Peachtree City. Items that should be considered by the Authority as a result of those discussions were: 1. A replacement of their current airport access easement. change was different in three areas i.e. The proposed (a) Current agreement was for a three year period and this was a concern to them in considering expansion. The term in the proposed document was from three years to twenty five years effective January 1, 1990 terminating 12/31/2015. Through the Fence 'agreement would include additional land they were acquiring for expansion - this would increase their property from five acres to thirteen acres. Amendment to fee with wording to "as, used herein gross receipts shall include only revenues from business derived from aviation related activities which (i) take place primarily on the ground on leasees premises and, (il) relate to aircraft which access leasees property across the airport property via airport runways, taxiways, and other facilities of the airport including but not limited to " (b) (c) Good gave a brief background on the current agreement and explained the reasons for the proposed changes. He explained that one of the concerns of Field was that the gross receipt requirement could be interpreted as being applied to activities that would take place off the airport that did not originate through the airport. An example of that would be that an engine could be brought from another location to their engine overhaul shop and then carried back to the other location when repalrs were completed. This type activity should not apply to the the 9ross receipt requirement. If, on the other hand, an airplane arrived at the airport and had repairs made, this activity would apply. The amendment was for clarification. Chairman Good called for action on the amendment to the agreement and t rl f i , f/ , recommended approval. Motion was made by Amos and seconded by Brigham that the amended agreement be approved. Motion carried unanimouoly. LETTER OF INDUCEMENT WITH FIELD AIRCRAFT ATLANTA Chairman Good explained that a reguest from Field Aircraft Atlanta had been received by the Authority requestlng that a cap be placed on the through the fence access fee for a given year. As the agreement is currently written 2% of revenues would be eligible for 9ross receipt fee. Good reported that Field was proposing additional lnvestment , seven or- eight million dollars in addition to what they have already invested in Peachtree City, and they were concerned about the gross receipts they would be required to pay based on revenues they plan to generate at some point and have asked for a cap on these payments. Good stated that he had asked Mr. Thatch of Field Aircraft to submit a letter of intent but he had been in Europe and the letter had not been received. A draft of the Inducement Letter was read by Doug Warner, Attorney for the Authority. The letter proposed a maximum annual access fee by Field of $375,000 with the ceiling being adjusted upward or downward to reflecc any chanoes in the Producer Price Index on Aircraft and Aircraft Parts (SIC #372) as published by the United States Department of Commerce. There was much discussion followino the proposed letter of intent and the Authority decided that additional information was needed before a decision could be made. Moti on was made by Amos that the i tern be tabled unt i1 the next regul ar meeting. Motion was seconded by Price. Motion carried unanimously. PAP! UPGRADE Mr. Reed Bull of Wilbur Smith & Associates presented the Authority with an alternative t~purchasing a four box PAPI. He explained that a one box PLASI was approximately $11,500 and this box would be comparable to a four box PAP!. Explanation was given for benefit of the non pilots that this equipment was a safety aid that provided visual slope to the runway and question was whether it would be worth the difference to purchase a four box PAPI. Good reported that a two box PAPI was planned for the airport and was all that the FAA would pay for. Good asked that Mr. Bull forward to Authority members who are pilots locations where the different boxes are located so that they could take a look at the different equipment. Also that Wilbur Smith & Associates have a recommendation ready for the next re9ularly scheduled meeting advising which equipment they would advise purchaslng. . r , I' ~, , There being no further business the meeting was adjourned to executive session by Chairman Good to discuss lease documentation and negotiation. EXECUTIVE SESSION No action 10:30 PH. was taken in executive session and the meeting was adjourned at n~ rYe?? Chalrman ' ~O--~J-~ Attest ecretary