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'" .c .c o o ti ~ ell ..., 0> ~ .... ~ .... 10 ~ , .... , Peachtree City Airport Authority (PCAA) , Special Meeting Minutes Thursday, March 5, 2009 AviationCenter, Peachtree City - Falcon Field 7:00 p.m. Members Present: Chairman - Mike Brady, Bill Flynn, Zaheer Faruqi, PCAA Alternate - Bill Rial, Assistant Aviation Director - Barry Griffith, A.A.E. Absent: Jerry Cobb, Richard Whiteley, John Crosby, Assistant Aviation Director, Airport Attorney - Doug Warner, City Council Member - Doug Sturbaum. 1. CALL MEETING TO ORDER Chairman Brady called the meeting to order at 7:05 p.m. 03-09-01 Airport Tenant Meeting - Workshop Discussion. Chairman Mike Brady stated that he has been a tenant at FFC for 13 years and he flies himself. He indicated that he had heard the rumors that he would bring airline traffic to FFC and he is here to separate fact from fiction. Chairman Brady stated that PCAA has started a number of efforts and the goal was to discuss those efforts tonight with the tenants. Chairman Brady stated that formal announcements will be going out soon to the tenants that will explain to everyone the work we've been doing: the initial results of that work and where we're going both in a 6 months snapshot and then going forward. He stated that tonight's meeting is the first effort of an important part to get feedback from our customers. Chairman Brady stated that PCAA were all volunteers are not paid for this service. All of the PCAA are from the Peachtree City community; 4 of the 5 are pilots and the 5th once is an AMP, a lot of us fly out of here. We've heard things and everything else, but our mission is to get the facts. One of the first things to do is to find out from our customers, the perception of what our product is that we are delivering. Chairman Brady stated sometimes perception is not reality and vice versa, but that we work and deal in a world of perception. PCAA met initially as a new board and said, "Alright, who are our customers? Who are we serving? Why are we here?" Chairman Brady stated that PCAA carne up with 3 customer groups that we serve. The largest and most dominant customer group is the tenants right here at Falcon Field, and those tenants are made up of a couple different classes of tenants. Om: that's a Recreation/General Aviation pilot like myself, the other are those people that have businesses that are conducted right here on the field like Karl Gardner and others like Norm here from Silver Ace. The third category is corporations that will have aircraft based ..1..' . here such as Chick-Fil-A and others. Those are the three predominant customers that make up our i I. tenant group here. 1 Chairman Brady stated the second local customer bases we have are the governmental representatives of Peachtree City and the Fayette County that we are to support as a part of our mission. He indicated that we were going to be meeting with those leaders here in the near future asking the very same questions we are asking of the tenants tonight. He. indicated that we were going to share with you what PCAA developed 5 years ago as their mission statement, goals and objectives. He requested to hear from the tenants on how are we doing and where we at are in that perception, then we're going to open up the floor for discussion on improvements. Chairman Brady stated PCAA was going to be asking these exact same questions to these other two customer groups: to the governments; city and county and to the corporations, the businesses in our metro area. Since there are so many businesses there are no way we can get them all together and most them don't have that time; PCAA is developing a written survey to go out to these businesses asking them these same kinds of questions. Chairman Brady stated PCAA is on an information gathering mission to finally get a report card of what's going on at FFC. He stated that we want things factual and we always want to conduct the meetings in a professional manner. He indicated that some things will get emotional and requested that everyone deal objectively about the way things are so we are able to support what is being shared. He stated we don't want to do is start chasing our tales on rumors or innuendoes; we need facts, as we're dealing with the issues. Chairman Brady stated that PCAA right now is very blessed from the standpoint that there are some have some highly experienced, proven businessmen that have developed businesses of their own from scratch in the aviation business. He said that those of us that have been in the aviation business know it's probably one ofthe toughest ones out there to make a living. We are blessed in we have people on the board now that are very successful in the aviation world, we're able to follow in all this business experience with developmental experience expertise and apply it to Falcon Field. Chairman Brady said that he is very excited about the initial work PCAA has been doing. That he often likes to compare Falcon Field to a diamond, a diamond in the rough that needs to be polished. Our mission is to polish that diamond and really turn it into a really first class operation, equally divided amongst all the tenants. He stated that no tenant here will be a dominant tenant and by that, it's not going to be all recreational, it's not going to be all corporate, and with my airline background I already heard some rumors right after I was elected Chairman, "Brady is going to bring in air carriers". He stated that there is no way in hell that is going to happen. Chairman Brady stated that we are going to balance everyone, and everyone has a need and a purpose. What we want to do is come up with a game plan working together and we want to propose some opportunities to take ownership in this process and for tenants to be part of the program going forward; that tonight is the first step towards that end. Chairman Brady asked if there were any questions kind of on the ground rules? He requested everyone be factual and in any involved statements to be able to support what was being said. :1 2 Chairman Brady said we've prepared are a couple slides up here and there are 4 to start off with. To give you some background, back in August 2004 the then airport board had a workshop weekend where they brought in a professional facilitator and sat down and talked about the same things we are talking about tonight. Catherine Nelmes, who at the time was the chairperson, had focused on the airport and what its capabilities were, what its future potential was, what needed to be done for infrastructure and business development. Chairman Brady said a lot has been done on the infrastructure side and that more is now needed from a business development side. Chairman Brady stated that out of that two day retreat session, this mission statement we're about to talk about, the airport's goals and objectives and what are called core values were developed. Chairman Brady wanted to know if this airport has been operating towards these objectives over this past 5 year period. Chairman Brady stated that is was PCAA's mission to get input from our customers as to the perception of what has been successful at FFC under these areas. Chairman Brady state that when PCAA gets done with this that we're going to have our own workshop after we gather all this information up; we're going to analyze it and say, "is this valid or not? Do we need to change it? And, where do we want to go s a collective group from here? Chairman Brady mentioned earlier that he wanted very active participation from our customers in this process because there is no way the 5 of us are going to say we have all the answers because we do not; that we are a joint ministry. Chairman Brady stated that first of all this is your airport board here. He introduced alternative Bill Rial who is very actively involved in tenant relations. He gave a little background in regard to how the City Council selects the authority members. He indicated that the City Council has passed an ordinance to change all the associations, commissions and authorities that are chartered by Peachtree City to add a new alternate position. Technically, the alternate is on the board sitting in ready reserve in case another board member leaves; the alternate would step in and fill that vacancy period. Chairman Brady stated the City has left it up to each individual authority or association on how they want to use that alternate. Each authority decides as to if and how the alternate gets actively involved. Chairman Brady stated that PCAA made the decision to get Bill actively involved in our group, just as if he was a board member. He also let the audience know that Bill Rial will have some pretty big assignments and will be representing PCAA out there in our community. Chairman Brady noted that Aviation Director John Crosby was listening in via conference call. It was reported that John was not feeling very well; he had some surgery a week ago this past Monday and is home recovering. Chairman Brady stated that we would like to see him be back next week but you to stay home until he was well. John is going to monitor this so he is up to speed. Chairman Brady stated that Richard Whiteley was not here but is a board member. He imagined he might be stuck in traffic since he work~ in downtown Atlanta in the finance building off Lenox Square. For Richard's background, he is an Annapolis graduate, an F-18 pilot, with an MBA. He is very talented. He noted that Jerry Cobb called in a little while ago who was not feeling well, so he will not be ~ here tonight. 3 ---r Chairman Brady reports that Zaheer Faruqi is an aviation entrepreneur who owns his own aircraft parts supply company; that he has built the company from scratch and they are international in scope. He noted thathe and Bill Flynn are alike in that they are both supposed to be retired and both are pilots. This was the introduction of your airport authority board. Chairman Brady presented the mission statement that was developed at the workshop in August of 04, very simply put, "To be the premiere Southeast executive service airport serving the metro Atlanta". The parts that go into making the mission statement are the core values which are the values that are basically what will be inscribed to what should be achieved. Chairman Brady asked if anyone had seen the mission statement and core values? An audience member stated that they have seen them at a meeting in the past at Falcon Field. Chairman Brady responded that it was outstanding that these things have been seen before. The audience read the items and began to discuss with PCAA. The following represents audience member participation and does not attempt to identify each participant's name but only comments expressed: SLIDE I Mission Statement To be the premier southeastern . .. executive servIce aIrport serving the metro-Atlanta region. 1 4 ~__m 1 '. ... lo -T----- SLIDE 2 Core Values Customer Service Excellence (providing premier levels of customer service to the flying public while striving for professional excellence) Supportive Working Environment (committed to providing a caring work environment recognizing employee values and celebrating team accomplishments) Honesty, Integrity & Consistency (open, truthful, conscientious and consistent in our dealings \\ith each other and our customers) Performance and Innovanon (action oriented through quality driven performance fostering innovative ideas and creative energy) Safe, Efficient & Eco..Friendly (ensuring safe and secure aviation travel in an efficient and environmentalIyfriendly aeronautical service facility) 5 1 -1--..----- SLIDE 3 Airport Authority Goals ,+~ ASSURE a safe, adequate and well maintained airport + , + ,"~ "~ --:._,- , PROMOTE and encourage the use of aviation facilities FOSTER safety, security and efficient operating conditions GUIDE airport improvement and development efforts OPERATE in a financially sound and growth oriented manner ,+, PARTNER with federal, state and multi-jurisdictional agencies J , 6 SLIDE 4 Provide a s . alrport~.; evel of customer service compared with peer Crescent and Metro-Atlanta) and run the on sound business principles f personal/pleasure aviation with facilities hIe for corporate operations City and the region for its Inc. (501(C)3) - over in 2007 J Audience Member (AM) speaking: .. . AM noted that it was commendable that PCAA would be having this meeting and accepting comments and feedback. AM reported that he has recently dealt with airports such as PDK/Fulton County and 7 .....~....:..........:. stated that customer service that was unb~.lieVablY good. AM noted that the FBO's all had courtesy cars i,. ... available. AM agreed with the Chairman Brady when comparing FFC as a diamond that need to be 'i . polished. AM said he was amazed at the lack of aircraft using FFC. !"'" ,} Chairman in response to AM said that this was the discussion; we've all been out there for a long time and seen all levels of service. One of the initial things we want to do is decide what we really want this to be about. For FFC to be financially self supportive; which it is not. We are all in financial trouble due to the economy, fuel sales are off about 40%, our revenue is off tremendously; we are in the same hole-everyone is with a bad economy. How do we fight our way out of here? Chairman Brady said he saw this as a short-term dip but asked the tenants where does FFC want to go from her or what is our joint vision? Chairman stated that FFC must stand on its own feet, but what is the path for that? He stated that development of the internal facility is exceptional; that the ILS coming on-line is a major, tremendous competitive advantage for FFC as a south side reliever airport. He noted that no other southern tier airport has a precision approach like FFC; that FFC facilities stand up to anyone else. Chairman Brady then said so we have to ask why aren't we getting more fuel sales? AM makes comments about the enhanced quality customer service that EPPS and the like provide; that the private sector is more capable of running an FBO. AM states that if a City or independent authority operate an FBO that the FBO loses some of the functions that can be offered by the private sector. Chairman Brady responds to AM that this was only partially true; that almost all those types of airports are run by a city management group or an independent authority. He stated that those airports have made business decisions because of thei~ size to release some functions. Chairman Brady stated that many of these airports are getting a percentage of revenue from whoever runs the certain functions. AM states that PCAA has always had the problem ofthru-the-fence agreements (TtF). AM stated that he thinks TtF issues have discouraged a lot of businesses from coming here and that corporations serving FFC could mean large aircraft with large fuel sales. Chairman Brady asks AM to elaborate on businesses being discouraged by TtF agreements? AM states that a recent example was the difficulty with TtF agreements occurred with the old Hunting hangars. AM stated that the Chick-fil-A (CFA) corporation had numerous problems getting PCAA approval of a TtF agreement. AM equated the action similar to the City of Atlanta not wanting Coca- Cola as a business partner. 1 Chairman Brady responds by saying, "Actually there is an excuse, and it's called the Federal Aviation Administration (FAA); that the FAA frowns on 'thru the fence' agreements and we are heavily funded by the FAA and the State. Vice-Chairman Bill Flynn then commented on his involvement with the CF A process of coming to Falcon Field and dealing with the FAA and TtF agreements. He went on to talk about how the FAA feels about business and unfair advantages. He also spoke about property that is on the airport, but not actually airport property. FAA has put a lot of money in FFC and they don't want businesses on the airport jeopardized by TtF agreements and by other businesses off airport property. Vice-Chairman Flynn stated how much the FAA has jurisdiction over FFC and that when you are getting money from them you must abide by the rules. He gave examples of the airport's funding 8 ----I dilemmas that occurred with recent TtF issues and how PCAA had to deal with this issue in terms of fimding percentages from the FAA and State. Chairman Brady stated that from a business perspective that TtF agreements put the airport in a bad position; that it makes it hard to keep everyone competitively whole. He said that John Crosby is very good with the FAA and has a straightforward relationship with them. The CF A deal was a very painful one, but successful. AM asked a question about TtF agreements. Assistant Aviation Director Barry Griffith said there are two (2) current TtF agreements in place; that they are CFA and Bearden & Vanechek (3001 hangar); that this airport has other TtF access points but no other known TtF agreements. AM asked where regulatory information or procedure guidance that can be found on TtF agreements. Chairman Brady deferred the question to Aviation Director John Crosby participating via conference call. Aviation Director Crosby responds that yes there was written FAA policy in a compliance order on the subject ofTtF agreements; that the FAA frowns on them. Aviation Director Crosby gave examples in regard to other airports (i.e. Scottsdale, AZ) who have dealt with TtF issues. He indicated that the founding fathers of PTC/FFC setup about 12 TtF access points on the field; that TtF agreements are usually dealt with individually. Vice Chairman Flynn stated that FFC has lost potential design funds from grant monies due to TtF activities and that it took time to convince FAA officials to reinstate fimding opportunities. Vice Chairman Flynn said that he was not against TtF agreements but PCAA must work with the FAA and not jeopardize fimding. Chairman Brady tells AM that at the end of the meeting that he will talk with him about the future opportunities for meeting in groups to get clarification on TtF agreements. AM states that most of the FFC tenants representatives attending this meeting do not care whether or not FFC is the 'Premiere Southeast Executive Service Airport and that there are many recreational users of the FFC that do not fit into this mission statements objective. AM stated that many of the tenants are retirees/shareholders to FFC's recreational community; that the mission statement doesn't represent what he wants FFC to be; that it is flawe~ and should be more encompassing of the recreational flyer. Vice Chairman Flynn stated that while he supports the recreational flyer, that many of the latest improvements (i.e. 1LS, Twy F, etc.) cannot be support when FFC sells small quantities of fuel; that corporate, transient traffic is needed for a positive revenue stream to keep us afloat. Chairman Brady again pointed out the different customers that we have a FFC; that there should be a blended approach. He asked the AM ifhe agreed that there was a mix of operators using FFC and reminded AM about the three groups of customers (Tenants, Businesses, and Governments). AM said he was very encouraged with the new PCAA direction of FFC, but still was worried about where the recreational pilot will fit in. AM asked if PCAA would be buying up any hangars from tenants. Chairman Brady said PCAA was taking a fresh new look at everything; that we must separate fact from fiction. PCAA must determine 1 wh= ~ .. w,""","wly Md,"", h""", "",""" =, port of'"'" ",,"y,i,. 9 ~I-- AM states that FFC businesses need to survive and running an FBD is a complex business. AM stated that until he can see a business plan that hangar purchases, TtF agreements and other business opportunities cannot be discussed effectively. Chairman Brady respectfully disagrees with AM's comment in regard to revising the mission statement, or core values yet and reiterated that PCAAlFFC before deciding on where we are collectively going to go that we've got to know where we are, and we're we've come from; that is what this is all about, this mission statement, these goals, and core values are five years old, so the airport was supposed to have been operating for five years to these commitments. Chairman Brady said what we're asking is what are the strengths and weaknesses? Has it or has it not been happening, so that we can identify our product delivery to our customers here. We must decide what we have been doing well, what has been okay but not great and what hasn't been ok at all so we can start improving our present product. Then PCAA can take that product and decide where we go long term with it by working in conjunction with everyone else; that first we have to decide what we've got before we decide where we want to go; that our mission statement, as it exists right now, may have to be modified; that this would be driven as a result from all the meetings and discussions. AM that TtF information has always been there and that fuel prices have been a known FFC problem. AM applauded PCAA members for having the meeting and listed the tenant concerns and encouraged good input; that this was not a small task to undertake, however, all these issues had been brought to PCAA's attention before. Chairman Brady respectfully disagreed here. He stated that we have pretty much a new board here; that we have not heard this before. Zaheer Fal'Uqi, myself and Richard Whiteley are all brand spanking new members and this is our second meeting. Vice-Chairman Flynn has been on the board for two years, that's the only continuity; Jerry Cobb is sick again - he's missed the last two meetings but has been on the board for several years. He urged the AM to understand that the new board is in the process of learning about the past, and the present, so we can build for the future. AM said he was an F-14 pilot and is an airline pilot and airplane owner and has been at FFC since 1986. As a casual observer, AM has often wondered if FFC has always tried to emulate itself as PDK, as Charlie Brown, or as McCollum airport; that FFC was not one of those airports; that those airport are a whole different category, a whole different customer base. AM asks who you think your competition is? AM states that the competition is Thomaston and Tara Field. AM stated that FFC constantly tries to mimic what's going on at PDK and McCollllm and that is where we constantly get dispute; that this approach dictates a lot of things (i.e. ramp prices, fuel prices). AM states that he is in hangar T -15 and feels like the airport is fighting the tenants in his position every step of the way; that this says something about the mission statement. Another AM reports that he has been here since 1981 and that FFC needs discounted, self-serve fuel service. Most FFC people fuel up at other places. AM states that after he pays all his bills that he might have some money left for flying. AM states that if he buys his fuel here, that he will do less flying that if he buys fuel at other places at a lower price; that ifhe can do more flying that is what he will do. AM says that if PCAA wants to make the tenants happy then they should put in a self-serve pump for our 6-7 gallons of 100LL and scab the jets all you want to make a profit. Another AM points out that he is 10 ~-_._- paying taxes to the City and County and that pressure should come from PCAA to get them to pay for a self-serve facility. Chairman Brady asks AM's to stay on one topic and that he will come back to the subject of taxes because it is a great topic and that the AM is right on the mark. AM reports that he has been on the airport for 20 years and that his concern that he tried to bring up with Jim Savage before was about how much money are we paying in county taxes and city tax and how much of that money is being rebated to the customer in fees or services? AM states that this could come from mowing the grass, painting the runway or whatever they want to do. In other words, AM want to know how much the tenants are spending and how much are we are getting back for our dollars? AM proposes that we get a tax attorney and see what they say the county owes us and if they do owe us that we propose a class action lawsuit and sue the county to get our money back here at FFC; that we need a Boston Tea Party. AM states he has been talking about this for several years, and that he has never gotten an answer. AM states that PCAA is getting some tax money. Another AM reports that this is considered Hotel/Motel tax and the City can cut that funding off at anytime; Vice-Chairman Flynn stated that FFC received approximately $124,000 in hotel/motel taxes in FY2007/2008. Chairman Brady indicated that there were 2 topics on the floor; that PCAA is already working on both items; that he would bring all AM's up to date on where stand on these items. Chairman Brady said he would like to address the fuel issue first and then will discuss taxes. He stated that it is not if FFC is going to get self-service, but when FFC is going to get self-service. Chairman Brady said he wanted to talk facts - dollar facts. He indicated that PCAA was in the hole this year and that there was no way we will have a break-even year; that we have to figure out how to stay afloat. Chairman Brady stated that to make it more complicated, City Tourism receives the hotel/motel money and then doles it out per agreement; that they have been threatening to cancel the agreement with a 120-day notice. The PCAA is short right now and trying to figure out how to move all these shells around. Chairman Brady explained his decision process with fuel he purchases for aircraft he has based at FFC and at Tara Field. He stated that PCAA is reviewing our fuel pricing policy to really analyze what our into-plane costs are which includes: labor, maintenance on fuel trucks, fuel farm and equipment; that we must first find out what our cost is and then figure out what a reasonable business return would be; that the goal would be for FFC to be competitive and still make our profit margin. After this information is known, then you can figure out where we get the funding to put the self-serve AvGas tank in. For the equipment alone its $75,000 and that has nothing to do with the site preparation. Guessing that site prep will cost another $75 - $100,000, he indicated that you're now looking at a $200,000 investment just to put the self-serve fuel here; that PCAA does not have that money. Chairman Brady asked if anyone out there wants to put a little business deal together and fund it and take that mark-up that PCAA would entertain that idea. Chairman Brady stated that PCAA can't get into a situation where the self-serve is competitive with what we are pumping out of the trucks; that it will be a dollar driven decision. Chairman Brady stated that there are a couple of airports around here that we will never beat their price. These airports are subsidized by the city they are located within (i.e. Griffin); that they can be short in their budgets at the end of the year and the City/County puts in whatever makes them break even. FFC 11 cannot compete with airport like that. Chairman Brady said that Thomaston is another airport where they get all sorts of tax advantages with the City/County; that it is an enterprise fund subsidized by tax revenue; that even if we go lower Thomaston will match us and go lower than us because they don't care if they are being made whole by the function of their enterprise zone. At this time Chairman Brady discussed the following slides in reference to competitive fuel prices and services for the listed southern tier airports and northern tier airports that were used in the analysis: AIRPORT COMP ARITIVE COSTS SOUTH ATLAl~TA CATCHMENT AREAS SUMMARY 3-Mar-09 Sonth > T-HA1'\GAR PRICES - Mo.thIv Rale Low RateJlj'h Hifh S358 ,586 Lo" .- S88 516; A\TS 319'; sseu FFC $358 S586 Sooth >TIE OOWN PRIcES- Mo.thIv SOL MULTI TI'RBO Jlj.h S57 $15 8m L~" S15 81; SI5 .\x:z'S ,\,{"t 548 370 FFC $57 S69 $81 Sonth >FBO HA","G:\R PRICES Monthl,- - SGL MrLTI TI'RBO JET Hi!h S358 I'l3O $650 S800 Llw S100 SIOO $562 S5i2 Arl'l) S2l,! 5H6 $G7o $63(, HC $358 8m S502 SS71 Sonth >FUEL PRICES- 3-Mar-09 IOOLLFS JET FS 100LL SS JET S8 Hi.h S4.35 S4.25 S4.35 $3.55 Low S.lAO $2.90 S3.25 $3.22 As;:,) $3,91 Sli! \.1.05 $l.u FFC 8.\J5 SJJ5 Ni'A NiA 12 AIRPORT COMP ARITIVE COSTS NORTH ATLANTA CATCHMENT AREAS SUMMARY 3-Mar-09 North >T-HA."GAR PRICES - Monthlv . RAId"", RAre Ion m.h 8480 mo u'w 8m 8135 Avz:;\' $,;'0')' S- !'~'" ~;... .' HC ~~\5S 85M North> TIE DOWN PRICES - Monthlv - - - SGL Ml'LTI TURBO m2h 5150 $320 5420 Low ''''' ,., S120 A.;\-"2:){ ~n3 '~:(j(} SZ70 He S57 5li9 SSI North >no HA."GARPRICES - MonthJv . SGL MrLTI TL1\110 JET m.h 8625 51000 Sl~120 S6.000 Low 8$50 545\) $575 51.700 Ayn., A9S .:7~i StJ~;i ~,;; 1.31 HC ms 54$0 $$02 s~n North >FUEL PRICES - :l-M.1r-$ l00LL F8 JET FS 100LL 5S JET SS I Hi2h 57.70 85.99 N!A NfA Low SU6 83.17 'if A :\fA At'rX 5SJS S.f3C Ci,A "iiA He 5$.75 83.75 'if A NfA 1 13 AIRPORT COMP ARITIVE COSTS NORTH & SQUTH CATCHMENT AREAS SUMMARY 3-Mal'-09 N&S ,.T-HAl'lGAR PRICES - Monthly Rate l'nvn 8720 lAw $135 ;\s;l SiX S19f}:''S..t;':' FFC $35S!S$86 N&S,.TIE DO\\'N PRICES - !{onthly SGL MVLTI TURBO IH;vh $I8; $320 $~20 Lo'l,v 815 Sl;; S1S AY'li'Sv'N 537/5153 $4$!SZiJO S'W,-'S27t1 FFC S;;7 S69 S81 N&S>FBO 1L~'1GAR PRICES - Monthlv SGL MVLTI TI1RJlO JET I ml<h S6ZS $1 000 SPOIl S6.000 Low SlOO S!80 $50.2 SS72 Ay:;: SiN ~11;;^'S-t93 S:346/S':127 SS7G/)L~2~) ')ci86!':sZ; m FFC S358 $.fM S;;02 $572 :';&5 ,.FUEL PRICES - .J.-Mar-09 - l00LL FS JET FS lUOLL 55 JETSS Hil<h 81.10 85.99 ~.JS $3.55 lA-.; $.lAO $1.70 S3.Z5 S3I22 w-\'Y:i!:S/S k~,9.lf$5J8 $3.7:!$4.50 S3,03/SJ.U SiA FFC :53.15 83.75 NIA foilA Chairman Brady indicated tha,t the survey was intended to identify standards in both the north/south tiers regarding price and quality of product. Vice-Chairman Flynn stated that PCAA agrees to keeping fuel prices low~r, however, the airport must determine the average costs to deliver from our fuel trucks into your planes; that you have to establish estimated profit/break even points. Chairman Brady states that FFC cannot compete with Thomaston, but will offer a fair price for a fair product; that FFC tenants need to support the airport in order for market pricing to be competitive and to turn this juggernaut around in the right direction. 14 Chairman Brady indicates a need to make FFC more attractive to customers and to make business determinations that will ~lIow us to continue to pay the bills; that the airport's budget is in dire straits and that there must .b.e a blend of corpofate / recreational airport operations. AM states that there are Angel Fl~ghts go to Thomion to purchase volume fuel amounts over 100 gallons at a time. AM asks why FFC cannot price fuel where other airports are pricing and that it is not incumbent on FFC tenants to support FFC; that pilots wilI also buy items other than gas and FFC should provide premier services. Chairman Brady responds to AM that PCAA is taking a hard look at alI pricing structures and explained the airport competitive analysis looked at all service sides and hangar space fees. He indicated that there are many parts to the tax issue for ad valorem; that no one has ever looked at alI the parts to identify the full impact as part of this juggernaut's going forward plan. AM states that he is a former 119 Driver and that have recently parked a DC-3 at FFC. That DC-3's bum up to 100 galIons per hour; that this operation was development of FAA training and public fun flights. He indicated that PCAA had indicated there was no room for a DC-3 to park; that efforts were still in the works to bring the DC- 3 to FFC and find a suitable location on the field. AM continues to note that as the infrastructure moves forward at FFC that the manufacturing business base on the south side is also growing; that currently the manufacturing base does not support FFC as it does in PDK, Fulton County; that as more companies move to the south side of Atlanta, that there is opportunity for moving more executives in/out of FFC such as possible helicopter use and other transportation alternatives. Chairman Brady said PCAA has significant investment in infrastructure at FFC; that with the addition of the ILS and other improvements, PCAA can now begin to focus efforts on development of a business plan; that PCAA is quantifying numbers so that cost advantages can be shown to prospective customers in regard to fuel prices, rates, etc. He indicated we must polish the product and that now we were treading water in the short term; that the business development plan wilI take into account short term, intermediate and long term strategies. Chairman Brady also told AM that he has tasked staff to get answers on the DC-3 parking issue. AM states that government run FBO's like PCAAlFFC compete with the private sector; that PCAA has been known to lower rent prices to draw potential customers away from FFC tenants. AM states that PCAA is supported by Hotel/Motel Tax; that Hill Aircraft wilI cut fuel prices to stay competitive; that as a business owner, he must make payroll and if the business is not making money then the check comes out of your back pocket. Chairman Brady states that it is the intent of PCAA to run as a business; that we are more of a break even operation and that it is not the intent for PCAA to undercut any airport tenants. AM states that hangar space is too expensive at FFC; that you can lease a T-hangar in Columbus for $200 month. AM states that tl).ere has been excessive jumps in hangar prices and that with Consumer Price Index (CPI) increases that FFC has pricing like PDK; that the true competition are the south tier airports. IS Vice Chairman Flynn stated that there appears to be some confusion with one AM stating that we are nndercutting lease rents to draw customers away with cheaper hangar prices and one AM stating that we are too expensive in our hangar leases. AM states that hangar prices are reasonable for larger type aircraft. Vice Chairman Flynn stated that PCAA is currently trying to figure out how to keep the doors open; that due to the recession the PCAA budget is incapable of supporting a self-serve fueling facility; that we want to offer this service, and we will offer fuel at competitive prices the question is "how to we pay for it?" Chairman Brady states there is a point of diminishing return; that the goal is to quantify our facility prices and determine our average costs through the competitive analysis. He showed the tier review and stated that FFC was generally the highest in the south tier and in the middle in terms of pricing in the north tier. AM asks why it cost more to park his light twin aircraft in a single parking position which does not take up any more space or require any more services from FFC staff? Chairman Brady indicated that there are different sized twin aircraft with bigger wing span; that this was most likely the reason for the price differentiation. Chairman Brady states that FFC has T -hangar space available and executive hangar (Toybox) space that is empty. He gave examples of his own current lease rates for a T-hangar at FFC and also some of the rates in comparison for parking a Barron on the field. He reminded AM that the competitive analysis was a snapshot look at rates and that it is not based on a weighted average. AM states that he is confused as to the purpose of this meeting; that it was his nnderstanding and many of AM's in attendance that they should bring a list of items to discuss in an open forum. AM states that apparently services/rates at Thomaston Airport are diametrically opposed to what FFC has to offer. AM states that the PCAA has to operate like two businesses, one as an Airport dealing with FAA grants, leases, etc. and one as a FBO; that as an Authority has done a poor job running as an FBO. AM stated that he has been to FBO's allover the conntry; that in Thomaston you can use three (3) crew cars and for some insurance liability reason, we have been told we cannot offer this at FFC. AM wanted to know how tenants are supposed to give PCAA their suggestions at this meeting? Chairman Brady said that it might be a perception, but when you look at how we're pricing and how we are trying to operate is why we want to have the standards and the quality ofthe product. But how are we doing with our services, not good; that he would like to see tenants take more ownership in were we take the Airport from here. He indicated that PCAA would be taking a business approach to analyze the situation and look at proposal on how we conduct business so we can plan on what to do and how we fund the operations. Chairman Brady invited everyone to attend the next PCAA meeting a,nd to continue being involved in the process. AM suggested that PCAA get a huge dry erase board and for participants to start making a lists of improvements needed; that ther~ are a million examples and that FFC needs to get off dead center and start treating customers like we want them to come back. AM states that Fayette Connty property tax should be used to bring some value back to FFC for ad valorem money that 16 1 is going to the County. AM states we need to get something in writing to the County to address this issue. AM states that PCAA should consider giving discounts to those tenants willing to pay a)iear in advance. AM states thatPCAA should do something with the F-16 Static Display; that there are pylons available through the military and there are AM's in attendance who can run with this project. AM complained that the furniture in the FBO was the original furniture and that looks like hell and should be replaced. AM thinks that PCAA should seek discount programs with local restaurants, golf courses and gyms for transient aircraft crews as a marketing effort. AM is concerned that airport management staff does not go out and meet customers on the apron at the plane more often; that more effort should be made to welcome flight crews/passengers. AM reiterates the need for PCAA to have a courtesy car for crews; that late night arrivals could have the uSe of the car. AM reports that FFC needs a lavatory dump and equipment to service larger aircraft. AM asked Chairman Brady to elaborate on the ad valorem tax issue. Chairman Brady stated that the issue on the County's ad valorem tax is currently under review; that there have been some preliminary discussions with County/City officials about ad valorem tax revenues derived from FFC hangars/aircraft. He stated that 2008 generated approximately $406,514 in taxes and 2009 that number will exceed $500,000; that Georgia State Law allows for the use of ad valorem taxes to go back to the airport from where it generates from and that there are examples such as Thomaston and Griffin where tax money is used to support their operations budgets. Chairman Brady indicated that Area B & C Development will generate additional tax revenues; that PCAA was trying to press the point with City/County officials that there could be an additional $1.5M in tax generation from these areas. Chairman Brady asked "why would PCAA want to invest this type of money for all this infrastructure improvement if there is nothing in return from the County?" He indicated that PCAA will talk with City/County/School Board officials to work out an arrangement; that if this does not occur it will kill the golden calve. He asked tenants to get involved politically as the need arises to support this initiative. Chairman Brady stated that when this triggers that a phased approach could occur where the hotel/motel tax is reduced by a percentage which is made up through the same percentage coming from ad valorem tax revenue; that FFC needs to gets its fair share; that PCAA will do a statewide survey of counties who have airports that mayor may not support the airport with ad valorem taxes. AM states that we need to understand the directives from the State of Georgia on ad valorem tax; that PCAA may want to consider hiring a tax attorney to determine how this money is allocated via the mileage rate and how the percentages are divided and why the School Board is the biggest recipient. AM says the FFC website is not updated and that you cannot print out recent financial reports; that there are AM's in attendan~ who have excellent website development skills that could be used in this area. AM states that there should be a frequent customer fuel discount programs. AM recommends that PCAA partner with the National Weather Station (NWS) and Terminal Radar Approach Control (TRACON) as an opportunity for pilots to tour that facility and view radar screens and talk with the personnel. AM would like to see a neighbor day community involvement effort where the airport hosts a luncheon that might be coordinated to a fly-in event; 17 -----1- that PDK neighbor day is an unbelievable event that we need to bring to the community. AM gave examples of perceived overcharges for towing fees for airport tenants who have large aircraft operations onloffthe field. AM indicated that PCAA was doing a poor public relations job and needed to designate a liaison to get more information in the newspaper. AM states that a newsletter would keep tenants informed about what PCAA is doing; that normally PCAA meetings are attended by about 5 people. AM indicated a need for a pedestrian access gate or access for patrons who want to go to Aircraft Spruce thru the northeast perimeter gate; that FFC could provide a golf cart for their use. AM indicates that he has a list a year-long that can be placed on a board and prioritized. AM states that as a corporate pilot with 32 years of airline experience if a linemen in baggy, torn jeans pulls up to fuel a multi-million dollar aircraft that this unprofessional appearance qoes not help with the pilot's comfort level for the best customer service; that the noose was not tight enough on the dress code at FFC. AM states that there are numerous events throughout the year for race teams using the Atlanta Motor Speedway; that more marketing efforts are needed to attract customers within this group. AM states that the mission statement appears to address corporate aircraft users and gives the impressions that FFC is better off with corporate jets not recreational users. AM says Flight School students should use call signs such as Trainer I to let other FFC users know that they are in the pattern training and to be onthe lookout; that Flight School students should move out of the way when a Lear jet or like announces they are on final. AM wants to know if the FAA or GDOT will pay for maintenance and operations budget items? A viatiollDirector John C~osby reports that the F AA/GDOT will pay for maintenance of pavement surfaces such as rejuvenation and overlay projects; that these funds are also used to fund ASOS relocations, airfield striping and other eligible airfield improvements. AM expresses concern over the Flight School's relocation plans. Chairman Brady indicates that he has known Dan Water, President- Falcon Aviation Services for many years; that Dan started his aviation flying career with one of his early airlines. Chairman Brady stated that he was aware that the Indian students were possibly going away for a period of time and that an agreement with Chinese student was imminent; that the flight school has had to layoff many of its employees. He expressed concern for the flight school's attempts to expand their operations and sympathized with the recent economic downturn of business; that FFC should position itself to be the optimal place to consolidate operations when the contract comes thru for the international students. Chairman Brady offered the following powerpoint slides as part of the presentation to the audience members for discussion on FFC Focus Committees: · FALCON FIELD SUPPORT COMMITTEES - Focus Committees . FOCUS COMMITTEES ~With Community Support Members . FOCUS COMMITTEES SUB-AREAS . AIRPORT SAFETY CONTINUED . AIRPORT OPERATIONS CONTINUED 18 FALCON FIELD SmORTCO~OOrrEES Focus Committees PROPOSAL: Establishment ofmultiple Support ComnUttees whose Jl1lIPOse il to pro,ide additional capabilities and expertise to the Allport Staffin selectedfuros!leas to enhance the Ililport operations; facility andrevenue development; safetJ; ~'!peIlle cOlllroll: and tenant, community, and got'elllllllJlt relations. Each C_nee will provide!llJlPort to the Ailport Director andstaff. The AiIportDirector and hi! staffwillremain the primmy Ie>'jlOIllIDle party for establi&hed areas of responsibility: Allport Operntions, Developlllfllt and MainteJlaJl(e Budgeting, Programming, and Financt COlIIIlIIIIlity Outreach M!fketing and Business Development Mwgematt ofFBO Operntions FOCUS COMMITITI: COMPOSmON: EachFOCll\ ComnUttee would be cllll1jlOled of two SlCtions: PRIMARY COMMITITI: MnmERS: composed of Allport Authotity member. with demonstrated expertise in the focus area. Committee members will be selected by the Authority Chainnan after oonsullatiou with the selectedAuthotity members. Authority Focns Committee members \\'ill select from \\_ their Authority member group OIl the colllIllitlee a designatld Lead ColllIllitlee member. Focns Committee member. will report to the Authotity Chairman. EachFoons ColIlIIlitleewill define their oomnUttee'sareas of support within their focns area, and preseotthese designated support areas to the Authority members and Ailport Director for review and approval COMMt1Nl1Y. gOMlIITTEE MEMBERS: Optional Conunirtee member. at discretion ofPrimmy CollllllitleeMem6ers. CoJlllll1lIlily ColIlIIlitlee Memben will be composed of airport tenanls and Iocal area (peachtree City and Fayette County) residents with demonstrated experience and expertise in the Focns ColIlIIlitlee!lea of relj1Onsibility. Authority oomnUttee members will mtif)' and protide justification for seIectiou and confumatiou to and by the Airport Authotily members fortheir desired CoIlllll1mily Conunirtee members. Authority COIlllllittee members will limit the nmnber of selected CoIIIIll1mily COIlllllittee members to four ma:tinmm to ensare a viable, relp<lnlive, and capable ColIlIIlitlee size. Collllll1mily Members willrepm to me delignatld Focns Committee Auihotily Lead member. ( 'lDdicates Committees with TelIllIt support) FOCllS COMlfiTIIE MEMBER SELECTION A,\'J) TENURE: Each Fa Committee member will be selected, !Ill101Illted, and coufinntd by the Authotily at the followiog monthly meeting of the Allport Authotily after the annnal selectinnlronfumatiou of the Authority Chainuan. Each ColIlIIlitlee member will sem uuiil the follil'A1ngyear'l Authority CbaiIman'! selectillll and confiImation. FOOlS COMlfiTIIEAREAS OF RESPONSIBILITY: Finance, Acroonting, Contracts, & Adminisl11non Business Delllopment and Marketing' Airport Operanons' Airport Safety' . Tenant Relatiolll' GOl"el'Dlllent Relatiolll (City, County, State) FAA Liaisoa Bnsintss P1anDmlopment Ail. Show Coordiunou 19 -2- FOCUS COMMITTEES "ith Community Support l\1~mb~rs Busin~ss Dev~Jopm~nt and Mark~1ing Zahler Farnoi Cell: 770..109-2683 'lahf'e~'i:i~nmtur~lilltion.("om Airport Operatious Mike Bradv Cell: 770-37U3S8 Mbrad,"671I@aoLrom Airport Silf~ty BiIlRW ---Cell: 404.2~-22S8 rl.,IwtMt)e<lrthlink.nel Tenant Relations Wliil Cell: 404.259-2208 riahr!fD:.i!earthlink.net Community Member Membership Clitma I. Falcon FJeld Ien:lnt or resident of Peachtree City andlor Fayette C~nnty 2. Demonstrated expertise in Committee AreaofResponsibiIity 3. Selected by Committee Board nJembers and approved by Board Chairmtn and Ah'(lOrt Director. 4. ActiveparticipationmFomCommittee a. Mnst maintain 71)% attendance in Fom Committee actil'ities, unless eIcnsed my Board Lead olIorm Conunitlet. 5. Muinuun offour (4) Community lfembers per Form Committee 6. Norify Board Lead Member by lUrch 13, 2009 of participation interest 7. Communi!\' Member Interviews: Marth 1~21. 2009 8. CommunitY Member selections annonnced: March 23, 2009 20 -3- FOCUS COMlIITIEES SUB-AREAS Tennant Relations Allport Tenant defined: . Categories: 1. Recreation/General Aviation 2. Onlield Businesses 3. Corporate BtI'linetSeS . Airplane owner/operator ~or building (hangar, office) owner/renter . Allport tewmls are airoort CtI'ltomers! It is the Tenant RelatiOllS Focus C.ommitree intent to offer the airport director and airport staff oor support with Falcon Field tenant relatiOllS. Our support will include but not limited to the following areas: Open lines of comnuuricatiollS, Information flow, Exchange of ideas, Airport activities, and any other tenant relation area deemed practical by the Airport Director and PC..a.A. More specifically, the Tenant Relations Focus Committee emphasis is in the following areas: . Advertise Focus Committee o Ensure tewmls know the Focus Committee members . Identifv tenants o Me<< as many tenants as possible o Ensure a=le airport tenant listing o Update current "Airport Based Customer List" o Identify expertise among tenants . Conducl SUIvev o List lenant[airport] concerns . Ft1e1 o Comparitli\'e prices o Self sen'. fuelfuture plans . AirportIntnwaySignage . FBO policies o charts, pilots lounge, security, ta.'tell, lease agreements, etc. e Townball~(quarterlyormontbly) . Define communication melbods e A=re emsi1list . TeJlaJlt Involvement In the following Focus Committees Safely Committee TeJlJlaJlt RelatiOllS Allport Marlteting! Business Development Airport Operations Airport Safet)' It is the Airport Safely Focus Committee intent to offer the airport director and airport staff om S1Ipport with airport general n-iation safety issues. Our support \vill include but not limited to the following areas: City, slate or government safely directives, Federal safety compliance, Safe!}' inspections, Emergency response, and any other airport safety discipline deemed practical by the Airport Director and PCAA. . 21 -4- Airport Safety- t4ntinned More specifically, !be AiIport Safety Foc.. Committee emphasis is in !be following...." . Safety Progmnmanagement effectivents' c Establish AiIport Safety Co1llllli1tee c Identify potemial aiIport hmrds o Developlimprovelupdare safety inspection checl:list(s) c Documemsafetyi..pe<tionresults . ldon1ify safety di!crepancies with appropriate assigned Office ofl'rimaIy Responsibility for correctR'e action. . :Monitor oonective actions o Ensure safety inspedion toIliinuity among aiIport staff . Tenant 1nvoh;ement o Tenants participate in AiIport Safety Co1llllli1t.. o Scout forsafety expems. among tenlmts o Ensun safety feedbad with telWltS o Sllmytenlmts . Researcli '4J1.'f safety related gJllIl" from Federal agencies c Detennine AiIport Safety Management System Pilot Study eligJbility RevIew Emerg...,y Rt<ponse Manual o !ncolporzte Peachtret City's as;ooajed references . e,g, Homeland 5ecnrity ManuaI'Requirements o Makerequired update. c Conduct required safety training c Cmlu:espoll!e preparednes< o Director,staffamiPCAA,llOllfit.tion c Tenmt notification ' Airport Operations It is the Airport Operalions Fom Conunirtee ~ io offer the aiIport director ami aiIport staff oor support with aiIport geomI aviation operational m.." Areas of ...i.tante CllIl be in the following operational areas: PoUtioniob Descripti_ r",ew,'updateipublioh PoUtion QuaIific.tioJi>. de<eloplpublioh Shift Duties- review,'updateipublioh Office HOllts by PosUion. "'..../apdateIpubli&h in pubfu: location AiIport RuIol & Regulati_ established ami published Employee Training l'rogmns by Position- reviewlupdatelpublilh lniliaI Training Prognms for New !lire< Recuneot T!1lfuing Progranu Training Records- establillm'updaredipublilhed Customer smm Training Progmnfor_cOlll!<t poritions Initial Training Progmnfor New l!iror RecuneotT!1lfuing Progmm Training Records- es1>blishedlupda~'publilh 22 -s- Airport Operations- continued Perfonuance Evaluations lJe\<elop WrittenE,wtioo Administer on Established Sdledule Record Keeping Policv & Procedures Manual , Manual Content- opemtiowPersonnel PolicieSiBenefiwlob Descnptioo,,* Employees Troned to Content MmualAtailable to Employees Manual Update System Business De\l!wpment aud MaJ'keting h IS the intent ofthe Itnsiness DOVftOpmlllt and M>rktting Forn C.mmittlf to offer the aiIport director and aiIport sllIlf our support with aiIport business .....Iopment and nwl<ering isrn<s. Area, of alSiue em be in the fullowing operational areas: Business DenJopmenl Identify Sources of Business Revenue and pursue Hangars, Ti..Dilv;n" Office Sp"" Fuel Corporate !Ji Commercial A viatkln On-Field Sel\ices c MWell!IlCel A,'ionicsiPainliSales:Part>'EquipmenI Tenants c Recreatilinal c Cotpori~ s.JesTeam-assists.iIportlll3lb1geJlllllt MarketiDg Plan and Goals Development and Adhelenct Somes ofMmering - DirectMailin.s - Advertisemen'ts in selected Trade pnblic.1tklRS - lnduslIy Com'BllioRS Competitive Amlysis ofFlI",. Fiold Prodnct and Service. Product RtpnlaiionlCnstomer Feedback Method S1lT\-.ys: CustomerslTransientsiCO!JX'rations Product Rtpnlationi customer Feedback !ncentive Promnll Fuel' Hangar space Businessloc,iion MarketingR.esourc~s Ads (1) Pamphlet Mailpieces Marketing;Sales pucksge Ili.splaywjthsupportmaterial! Web Site n....lopllllllliUpdate!.biz site 23 Chairman Brady outlined each area and reminded potential participants that the max number was 4 per committee with 2 PCAA members on the yOIllffiitteeone in a lead position; that the goal of announcing a 6-month snapshot needed to analyze the business form structure and to move forward as a group. Chairman Brady reminded audience members of the March 13 deadline to notify PCAA for possible participation on focus committees; that this would be unique opportunity to make a difference at FFC. He reminded everyone that we have a good product and that we would take bite sized pieces at improving the product; that there would be a need to distribute the work load and tenants would have ownership in the overall process and part of the solutions. Chairman Brady indicated that PCAA would work on an email notification system; that he had talked with representatives from Daytona Beach about a system that could alert tenants to impending weather scenarios and other safety related informational items. He expressed a need to have people with expertise in the listed areas to get involved in the formation of the programs; that designated people can make a difference. He talked about a need to review existing policies and procedures related to employee training and performance review programs; that there was a need to review job descriptions and possible revisions are needed. He spoke of a need to implement airport rules and regulations and minimum standards; that FFC does not currently have a customer service representative training program. Chairman Brady acknowledged the need to update FFC's website and also spoke about the development ofteam leaders; that sales team efforts to develop new business would need support materials to back up the proposals. He indicated that PCAA was trying to accomplish many things in a short time period; that there was a need for active participation from FFC tenants and that we need to polish this diamond together. Chairman Brady announced the PCAA members would be around after the rne~ting to discuss these ideas further and that everyone attend the PCAA meeting on March 12,2009. Vice- Chairman Bill Flynn seconded by Chairman Mike Brady to adjourn the meeting at 9:45 p.m.; motio"_~310 .. . ~~~~ ~~? ~~:"Y'Ch>hm= ,()hp.~ 24