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03-22-2000 Special Called Meeting PEACHTREE CITY AIRPORT AUTHORITY MINUTES OF MEETING March 22, 2000 A Special Called meeting of the Peachtree City Airport Authority, was held at the Aviation Center, Peachtree City-Falcon Field Airport, on March 22, 2000, at 7:00 p.m. Those present included Authority Chairman: David M. Good; Members H.E. Buffington, Susan M. Cates, Catherine M. Nelmes, Mark G. Bunker; Airport Manager James H. Savage; Assistant Manager B. Andrew Bolton; Director of Maintenance R. Dale Donegan; Bookkeeper Debbie G. Thornton; and Authority Attorney Douglas B. Warner. I. OLD AGENDA ITEMS 00-03-03 Review PCAA current financial pOSition and consider options for future operations. Chairman Good gave eln opening statement on the history of the financial issues facing the Authority including the decision of the Authority to operate the Fixed Base Operation (FBO) after the departure of Stevens Aviation. Citing the desire of the Authority to offer superior service at reasonable prices, he explained that efforts to date had been successful in that regard, but it had been at a cost of approximately $10,000 per month in negative cash flow. He further explained that the monthly loss has been tolerated with the belief that a new operator would occupy the Hunting Aircraft facility soon after Stevens Aviation left and that a positive cash flow would return. This of course had not been the case and that the Authority had agreed at its last meeting that it must take whatever steps necessary to correct the problem. He called upon Mr. Savage to review the attached explanation and proposed monthly budget, which are made a part of these minutes. Mr. Savage reviewed the actions that had aiready been implemented and the assumptions and methods used in the development of the proposed budget. A question and answer period followed, first with the Authority members then later with the general public. Chairman Good asked for comments, suggestions or recommendations from all present. Several ideas for future consideration were given, including the private development of a T-hangar on the remaining site in Hangar Area "A." 1 ..- , f ~. , ,....., After considerable discussion by the Authority, Chairman Good moved to adopt the budget on a month-t()~month basis as presented, with the additional actions of raising the Annex Hangar rent by $250 per month and requesting Eastern Aviation Fuels, Inc. to agree to an "interest only" payment on the fuel farm until such time as the Authority can again afford to make full payments. The motion was seconded by Mr. Bunker and was passed unanimously. At 8:58 p.m., Chairman Good indicated that he knew of no other items to come before the Authority and called for a motion to adjourn. Ms. Cates moved to adjourn, which was seconded by Mr. Buffington and was passed unanimOUS~IY' ~ . VV', Attested by: ~ David M. Good, Chairman 2 --- ~.... , Peachtree City Airport Authority Budget - FY 2000 . April through September. By Department Plan A . (Revised 3/21/00) Airport I FBO Maintenancel I Totals INCOME I I I I j 4000 - Commercial User Fees - - I - I I - 4010. Hangar Leases I I- I ~._- T-HanQ.ar Leases 7,~ I 7,950 _~O'2 - Tie-down Leases 2,160 -r- I 2,160 ~~13 - Private Hangar Leases 3.650 ! I 3.650 4014 - FBQ Hangar Leases I 5,022 I I I 5,022 Sub-total I 18,782 i +--+ 18,782 I I I 4015 - Late Fees 25 I I , 25 ~6- ~ Office Rental 1,270 I I I I -~ I 4017 - Retumed Check Fees ::.::+=:--T I : ~~ - Rental Car Commissions 150 I I I : 150 __4022 - Fuel Sales Jet A I I 26,057 I I --r-26W 4023 - Fuel Sales Avgas I I 30~ , 30~659 ~~ - O~_~might TlfH10wn Rent i 246 t------ 246 ~: FBO Hgr Overnight Rent I I 229 I I 229 4027 - Pilr'lt Supplies Sales I 1,9291 ! 1.929 =f528 .-Mise Sales ....; I 200 I , , 200 _j031 - Aircraft Inspections I I 5,731 ! 5,731 4032 - Aircraft Repairs & Maint I -1- 8,371 i -~ ~~33 - DAR Certifications I , 352..L..- 352 4- I 4034 - Alreraft Parts Sales +- i 6,145 r 6,145 4035 ~ Aircraft Oil Sales ! =t----~ 300 i , 300 4036 . Mise Maint. Sales I 161 r -~-- -161 - - 7~ I 4038 - Sub-'-ootract. Rep/Malnt f '801 _ ;~ 4290 - Returns & Allowances I I . Sub-total : 1,445 59,320 21,861 __-~___ 82.626 I.<<tal 'ncomo -~ -=-= -- =i--=- -2o;m- ---s~- 21;861'--- -_=-=- 101--:40~8 I COST-OFGOooI=-=-=---=i I +-----T----~-- I I ' , 500O:Cost of Goods Sold I -.J.__..-L- I - -S002-PilotSupplies-----j-.-- I :Hh+ ~----=-1,177 U~~~ t'g~a~e: Inventory I=---t-~-~---,.....?~:~;~_ _~22. Jet A Fuel I ___+~,058 .:---- i_' 14,058 5023. Sub-Com. Rep/Maint t' 591-t _ 691 5032 - Aircraft 011 _ I I 201 201 ~ 5042 - Miscellaneous I 100 ,I 100 _~43 - ~.SC. Maint. I I i 80 : 80 Sub-total I 31,612 ! 5,283 : 42,894 ! i ...::...L..E~1_2j__ 5'283L__~' 42,894 -t- I I : ' Gross:ofit J 20,227 i _~~~0~_~~___.r_~8,514 ~~NSE I: Iii ! -----1. 1- ~ - Adve~ising ~ " II - -L--r-,~ --:-I I-_S'i01-Airport .. --1-- ~ 5102 - FSO -----+-----~----------L---l- - S103~Maint Ii. I I - ~<!i. 5100._. . ------=..o:..-L-.. - i . .L ! . ~_ ! i : ! 5230 - Tra~el -+. : ! f-5231~rpOrt___-+--__ -=--.L---L-----L- ~p2-FSO -L L- - i i ~? - .Maint r ---; --I 455 ! ~:::::&~:::- -I -- i ~-t=-~ ~g1 - Airport =+= 195 I ===::r==::J 6102 - F80 . 55 ; I 6103 - Maint :j3-r Total- 6100 195 65 i 33 TotafCoSt of Goods , t ! - ; ---.- ;55 i .i?:] i , , i 195 I 65 i 33 I 293 Page 1 6120 - Bank Charges I I i - I I - I ! 6132 - Credit Card Processing Fees 202 593 . r- ~ 6170 - Dues & Subscriptions 6171 ~ Airport 6172 - FBO ~-;;-Maint Total- 6170 - i 6200 ~ Insurance. Ger. Uability 6201 - Airport 6202 . FBO 6203 . Maint Total- 6000 6210 - insurance - Property 6220 - Insurance - Auto ~~O - Insurance .Emp Theft Total.6210.6230 , I 676 I I I 676 r 'T 83 r 50 I 171 150 ! 676 676 i I 6352. Fuel Fann Maintenance 6362 - Fuel Truck Rent ,....., , , +-- I I 6380 - Repairs & Maintenance I- ! I _638..,1...- Airport I 1,950 : I 6382 ~ FBO r---- . i -195l 6383-Maint i..:_ :: ~:::e ~~p~es _ r-_1'05+-=~~~l_ 6441 - Airport 200 i I ~.FBO -- .=1---:-1'_ ~-~~ j i Total - 6440 . 200 i-I ! i- p..., - I 219 , I 50 i 50 ' ! I 676 I 676 I 84 50 17 , 151 . , ! ! ---j- ---l-- i I I 1,014 50 50 i 676 676 676 2,028 I I I 250 150 50 450 I I 1,613 741 1,074 3.427 -.- 645 593 523 1,761 -- -- -- 800 240 1,040 -160 -55 65 290 33 83 160 1,300 1,950 -~ 180 2,325 180 : 180 i -r- I -L i i~~ 120 , I -120 120 ' 320 I 6450 . Office Expense 6451 - Airport 6452 - FBO 6453 . Maint Total- 6450 6460 - Shop Supplies ~_- Airport 6452 - FBO 6453 - Maint Total 4 6460 ~~Q - Taxes. Payroll I I I 1 ~ ! , i 275 : . I : ., 65, I -r 65 ' -L 1,505 : ~-+ I I --t 350 ;- 652.Q..:Jeleph~ne 6521 - Airport _~522: FBO 6523 . Maint Totai.:.6520 _______'L . 6530 . Utilities I 6531 - Airpo,rt ! 6532 - FBO t- 6533 - Maint To,tal - 6530 i --. =C'. i 6560 - Payroll Expense 6561 - i\irport I 6562- FeO ! 16563 - Maint -"'~ , Total - 6560 , - -- I I ~,:_f..~ntract Employee~ I _n___ . Total Expense -t- Net Ordlnar;lncome (loss) i ,- OTHER INCOME --. , , 7030 ~'lnterest Earned 4050 - Hotel/Motel Tax 7050 - Unbudgeted Income ~_t~e.r Income ~--' OTHER EXPENSE NET INCOME Debt Service - Principal Loan #10 Loan #11 lotal Principal Reduction NET CASH FLOW -L-, 350 ' , 1.060 : I I 275 I 275 ! I I 65 : 65 , I 1.384 i I I , I 300 i 300 ' , --f I 100 i 100 I I 130 i 130 I I 1.220T I I I I 200 I 200 I I I I I -I. 275 275 I 100 I 650 , , ..L I -~ I 65 T 130 I 260 I I 4.109 350 i 300 I 200 I 850 : I I 1.000 I 1.600 T 1,400 L_ 4,000 "- i 1.600 i i ---r- 1,400 ! 1.000 I 1.600 ' 1.400 I i ; ! ..,----~-~ , ! I 10.750 :_____ i --L 10.7g~ , 9.387 , I : 9.387 -----1---- 8 717 ~ 8717 10.750 ',I 9.887 i, ~----! 2~3~ I - i -~,- _ ~ . :--.~~~+-- I '-'.'--+--'-'- 20.292!-' 18,236 15,690 i I _ 54,218 I ! ---1--- _---=_=_ (66)1. 3,473 888 I '4,295 I ! i I I- I I I I I , 1 I;} I :--:- -~: ~ I , I --+----.-j- i I I , 1= r Page 3 I -- -.;00 14,013 300 14.713 1 'T I 9,768 -- I I : -~~-t- , I --+----r--- I I I _ I I. - -I 7035-DebtService-lnterest, -I, - r,- - :, --+-1-_ -;-- j!;h~~~x~lL -;t--- --~ -=1- '=+,-= i !1 Net Other Income (loss) I i-r I 5,473 I ~ I I ! -t-' 3.796 1.270 511,~ 4,703 - 1 t , , "......" t Operational Changes Included in FY 2000, 2nd Half Budget . Increased Jet A fuel sales by 15% over same period last year. . Raised Jet A margin by $.08 per gallon. . Eliminated all discount increments for pre-paid Jet A over 1,000 gallons and set max discount at $.20 per gallon. . Increased AvGas sales by 10% over same period last year. . Raised AvGas margin by $.03 per gallon. . Set max discount for pre-paid AvGas at $.20 per gallon. . Reduced manpower cost in FBO by two PIT line service employees (40 hours/wk), by having Assistant Manager work line and service desk part-time, and Airport Manager work service desk part-time. . Raised maintenance shop rate by $5.00 per hour for all aircraft. . Adjusted aircraft inspections and maintenance sales to the monthly average for the last 5 months, plus 10%. . Reduced manpower cost in Aircraft Maintenance by putting one employee on part-time status, (10 hours/wk). . Placed moratorium on advertising and uniform expense; reduced expenses on repairs and maintenance, office supplies, dues and subscriptions, professional fees, utility costs, shop supplies, auto & truck, business travel, and other small corrections. Total Impact: Other Items that may be considered. . Reduce operating hours by 2 hrs/day @ $30/hour. Eliminate fuel discount for based aircraft @ $.05 per gallon. Eliminate fuel discount for cash or Air BP card @ $.05 per gallon. Eliminate pre-paid fuel discounts @ $.20 per gallon. Recover credit card processing Tees from customers. Raise Annex hangar rentby 50%. Reduce employee benefits by 25%. Make temporary "interest only" payments on fuel farm . . . . . . . Impact on Bottom Line Each Month $ 1,575 801 480 903 390 180 1,775 1,282 1,276 1,053 6,535 $16,250 $1,800 207 307 1,200 1,000 500 850 1,000 ",-.. ~ , .-. , ~". [, 3-31-00 PEACHTREE CITY AIRPORT AUTHORITY RECORD OF ATTENDANCE AS OF: March 31, 2000 Members Regular Meetings Regular Special Called Special Called Total Meetings Last Attended Attendance Meetings Last Meetings Attendance 12 Months % 12 Mon!l1s Attended % David M. Good 12 9 75% 2 2 79% Susan M. Cates 12 7 58% 2 2 64% Mark G. Bunker. 3 3 100% 1 1 100% Catherine M_ Nelmes 12 12 100% 2 2 100% H.E. Buffington 12 11 92% 2 2 93% . New member as of 1/1/00 Members Dates Absent Type David M. Good 6/2/99 Regular 7/7/99 Regular 10/6/99 Regular Susan M. Cates 1/12/00 Regular 3/8/00 Regular 5/5/99 Regular 9/1/99 Regular 12/8/99 Regular Mark G. Bunker Catherine M. Nelmes H.E. Buffington 8/3/99 Regular Meeting Dates Type 1/12/00 Regular 2/9/00 Regular 3/8/00 Regular 3/22/00 Special 4/7/99 Regular 5/5/99 Regular 6/2/99 Regular 7/7/99 Regular 8/3/99 Regular 9/1/99 Regular 9/27/99 Special 10/6/99 Regular 11/10/99 Regular 12/8/99 Regular Page 1