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02-11-2010 r-""< . Peachtree City Airport Authority (PCAA) . Regular Meeting Minutes Thursday, February 11,2010 Aviation Center, Peachtree City - Falcon Field 7:00 p.m. Members Present: Vice-Chairman & Secretary/Treasurer - Bill Flynn, Zaheer Faruqi, Bill Rial, George Harrison, Alternate Member - Bryan LaBrecque, Assistant Aviation Director - Barry Griffith, A.A.E., Airport Attorney - Doug Warner and City Council Member - Eric lmker. Absent: Chairman- Richard Whiteley, Aviation Director - John Crosby I. CALL THE MEETING TO ORDER Vice-Chairman Bill Flynn called the meeting to order at 7:05p.m. and introduced newly elected City Council Member - Eric lmker who has been assigned to PCAA in an advisory role. Alternate Member Bryan LaBrecque was r<;introduced by Vice-Chairman Flynn. Chairman Flynn recognized Mr. LaBrecque's distinguished career accomplishments. -- Vice-Chairman Flynn reports that Aviation Director - John Crosby is absent tonight and attending to his wife who recently had a double knee surgery and Chairman - Richard Whiteley had an urgent need arise in regard to a business development meeting with his firm. Airport Attorney - Doug Warner reports that the wife of Airport Tenant Bill Mercure passed away after a long battle with cancer. Mr. Warner asked that we keep Mr. Mercure and his family in our thoughts and prayers. Assistant Aviation Director - Barry Griffith reports that he, two customer service representatives and PCAA member Bill Rial attended the 21st Annual NBAA Schedulers & Dispatchers conference January 26-29 in San Antonio, Texas. He indicated that there were 2,282 attendees and 317 exhibits; that staff had opportunity to meet with numerous business and corporate charter companies, flight departments, fuel service providers and other aviation related support companies and FBO's. Mr. Griffith reports that there was less confusion in regard to attendees mistaking us for Peachtree-Dekalb Airport (PDK) due to our new name change to Atlanta Regional Airport Falcon Field (FFC). ,...., Bill Rial agreed th<lt the new name change sparked interest and reported that he collected numerous business cards from the various companies; that there must be follow up correspondence and outreach with these companies to make it worth our effort to attend this conference. Mr. Rial stated that after 25 years of military aviation, 13 years of commercial airline aviation and a couple of years of general aviation, that he is now more educated as to what business aviation entails. Mr. Rial states that business aviation is very important to our airport, the economy and t: F ,..... the community and that this was an excellent opportunity to continue our networking efforts.. Mr. Rial stated that he spoke with the Chairman of the Georgia Business Aviation Association who encouraged PCAA remain active and involved in the NBAA Schedulers & Dispatchers conference. Assistant Aviation Director - Barry Griffith reports that today a company jet with NCR Corporation purchased 1145 gallons of jet fuel and that a relationship has been formed with the NCR Scheduler for future business. Vice-Chairman Flynn thanked Bill Rial and staff for attending the conference and the marketing committee for all their efforts in promoting Atlanta Regional Airport. Bill Rial reports that the NBAA S& D is in Savannah next year and that PCAA should look at who should be sent in order to best represent FFC. ,..... Vice-Chairman Flynn reports that he and Aviation Director - John Crosby attended a Georgia Department of Transportation (GDOT) press conference in regard to additional funding from the American Recovery & Reinvestment Act ({\RRA-Stimulus); that FFC has received $2M in funds and that a similar amount is anticipated in additional funding from the state. He credited the ability to get this money from airport staff efforts to have shovel-ready projects designed and on the shelf ready to bid. Vice-Chairman Flynn reports that his discussions with GDOT-Aviation Director Carol Comer is that the State considers FFC as one of the best airports in Georgia and this is one of the reasons that FFC continues to receive a generous and sizable amount of grant funds needed to develop the Airport. f II. APPROVAL OF MINUTES January 14,2010 PCAA Regular Meeting Minutes Motion made by Bill Rial and seconded by George Harrison to approve the minutes; motion carries 4/0. III. REPORTS Aviation Director - John Crosby (Barry GrijJith); in the absence of John Crosby, Assistant Aviation Director Barry Griffith stated that the items he was going to mention have already been addressed; that one other recognition was in order. Mr. Griffith noted that Airport Attorney Doug Warner was the honored recipient of the 2009 Fayette County Chamber of Commerce Outstanding Business Person of the year. IV. FINANCIAL REVIEW Aviation Director - John Crosby (Barry GrijJith); Assistant Aviation Director Barry Griffith reports that financial report was sent out via email; that this month airport staff did not over expend the maintenance account and that we short of breaking even by $250. Mr. Griffith reported that fuel is the airport's biggest revenue producer and reviewed with the PCAA both jet and AvGas fuel sales for - "".",.,. f 02-10-01 ...- , b, ,. the month as compared to last year's totals. Vice-Chairman Flynn reports that the internal budget is actually a forecast and not a budget; that a budget is a number that must be met in order to keep you job and that a forecast is anticipated level of business. Mr. Flynn stated that while the Airport projects a $250K profit that this won't happen due to the decrease in fuel sales and that we are hovering around break even for the year; that we are still feeling the impact of a huge economic depression. V. OLD AGENDA ITEMS - none. VI. NEW AGENDA ITEM Discussion of PCAA Fuel Purchase Incentive Programs - Vice-Chairman Flynn opened up the floor for discussion on FFC fuel programs. He indicated that Bill Borchert sent a note to the PCAA on the reasonableness 'of the pre-pay fuel incentive program. Mr. Flynn stated that while he understands the need to give a reasonable price break to our tenants that there are some competitive situations tliat have to factor into the discussion. Mr. Flynn stated that Griffin-Spalding County Airport, as an enterprise zone, has budget shortfalls covered by the City and County as a backstop; that Tara Field is subsidized by the County. Mr. Flynn stated that it is tough to beat these airports in fuel pricing and that tenants should keep this in mind when they raise their concerns. Mr. Flynn stated that 60-70% of the Airport's revenues come from fuel and asked the audience to tell the PCAA what they don't like about the current fuel programs and make suggestions on how we can improve this level of service and turn a profit. Audience Member (AM) indicates that he has an aircraft in the FBO hangar and that historically he has been required to place a $5,000 deposit to purchase fuel at a discounted price; that each purchase is drawn down from the deposit. AM stated that if he flies a lot that the discount works well but if he flies seldom that the value of the money, inflation, and time value exceeds the discount in the long run. AM stated that it is not unusual for the local based tenants at other airports to be offered a fuel discount at the time of purchase. AM stated that the PCAA Chairman was very responsive to his concerns; that he is hopeful that PCAA will get rid of the $5,000 pre pay program and offer some type of incentive to the based customer. AM stated that this would make him happy but that he did not realize that we are playing on an uneven playing field as referenced previously. AM stated that when he is flying from Detroit to Ft. Meyers that he goes on the internet to check fuel prices. He gave a price comparison between Griffin and FFC and stated that he would stop in Griffin to fill up if the price was substantially cheaper. AM asked City Council member Eric Imker to offer some possible subsidy to the Airport for fuel incentive programs. ~ Vice-Chairman Flynn stated he needed to let Mr. Imker off the hook and offered up an idea previously discussed with the City/County of sharing in the ad valorem tax revenue generated by the Airport for future development in Areas B & C. Mr. Flynn stated that tnis idea was not well received particularly due to the fact that local governments have seen huge drops in sales tax, hotel/motel tax and experiencing major budget shortfalls. Mr. Flynn stated that PCAA will take on a tremendous amount of risk developing Areas B & C; that when both areas are fully built out that an additional $2M of ad valorem revenue would be generated from the Airport; that Fayette County gets this money and does not share with PCAA. He stated that this item would be tabled for a while until we get some viable businesses building hangars on the field; that in the meantime PCAA has eliminated some fees and tries to remaill competitive with surrounding airports. He stated that the cuts have the impact of cutting intc the bottom line; that PCAA does not want to us~ reserves to pay for operational costs. City Council Member - Eric Imker requested more information on how other airports are subsidized by their County and/or City. ~ AM thanked Vice-Chairman Flynn and Chairman Whiteley for their quick response and for making this an agenda item. AM wanted to know when Area C would generate revenue? AM stated that every time the fuel issue comes up a PCAA member will say that Griffin and Tara have deals with their City or County which allow for better fuel pricing; that this is not the tenant's problem that it is a PCAA problem. AM states that pilots want to buy gas at the best price and that it is PCAA'sjob to provide that at FFC. AM stated that if Area C is the key to having fuel prices better then PCAA needs to get moving on Area C; that Area C has been talked about for the last 5 years and all that is over there is a big pile of dirt with nothing on it. AM asks the PCAA what time frame that he would see Area C developed and when will this alleviate the fuel pricing situation? Vice-Chairman Flynn responded that this was a reasonable question tnat he did not have an immediate answer to because this is not in PCAA's control; that many factors play into a corporation's decision to develop hangars. Vice-Chairman Flynn stated that there are company's looking at Area C but that information cannot be disclosed; that PCAA is open to suggestions and will consider a host of financial options for building in Area C. He stated that PCAA will continue the dialogue with the respective principals to encourage Area C development but that this is out of our control. ~ AM asked if the game plan in Area C would be to have pri"ately owned and PCAA owned hangars in Area C? Vice-Chairman Flynn stated that PCAA is open to evaluating any proposals for development in Area C. AM asked if PCAA has the money to build hangars in Area C? Mr. Flynn stated that we do if PCAA borrows money from the bank but would not use reserves to build hangars; that PCAA might consider a long-term lease arrangement with a prospective tenant who has' the finanqial strength to support a PCAA credit of loan for future ..- t- ~. ..- ~. - development. He stated that PCAA would consider all options and be creative in ways they might structure a deal in Area C. Vice-Chairman Flynn thanked the AM's for their input and suggested that if others have input they can email or stop by and discuss this with Airport Staff or PCAA; that we will do better to address this issues if we work together as a group. VII. EXECUTIVE SESSION Motion made by George Harrison and seconded by Bill Rial to enter into executive session at 7:33p.m.; motion carries 4/0. Motion made by Bill Rial and seconded by Zaheer Faruqi to return to regular session at 8:08p.m.; motion carries 4/0. VIII. ADJOURNMENT Motion made by Zaheer Faruqi and seconded by George Harrison to adjourn the meeting at 8:09 p.m.; motion carries 4/0. . Note: This agenda is subject to change up to 24 hours prior to the meeting. ~ ~A1~ p A Chairman t- PEACHTREE CITY AIRPORT AUTHORITY ~ EXECUTIVE SESSION AFFIDAvIT The undersigned hereby states under oath, in the presence of a nolary public, as subscribed below. that the ~ndersigned presided over a meeting of the Peachtree City Airport Authority. in the capacity set forth below. on lhe meeting date set forth below. A portion of this meeting was hekj in executive session and closed to the public, pursuant to motion duly made, seconded and passed by the Authority. The closed portion of such meeting, held in executive session, was devoted to matters within the exceptions provided by law, specifically as initialed below ~cussing matters protected by the attorney-client privilege. O.C.GA ~50-14-2(1). . o Discussing the future acquisition of real estate. OC.GA ~50-14-3(4). o Discussing or deliberating the appointment. employment, compensation. hiring, disciplinary action or dismissal, or periodic evaluation or rating of a public officer or employee. O.C.GA ~50-14-3(6). The closed portion of the meeting was held in compliance with the law. based upon the advice of legal counsel for the Authority, and based upon observation of all members present. ,,..,..,. The undersigned confirm that the statements contained in the above affidavit are true and correct. ~ ~ --- ~ ""'-W . OFINION OF LEGAL COUNSEL ,..... The closed portion of the meeting of the Peachtree City Airport Authority referenced in the above affidavit was appropriate under Georgia law and was hel t to my advice and counsel. -c ,...., ~~ ~ ~ Cl N ~(/) 0;0 ~ <OJ Z ~'" ~ .. - '" 1\5'" ,.. _. ~ n' == III ~~ ~ 0 ,.. ~~ .. <'> - '" "T1 3 ;0 '" _. ,.. 0 od 0 .a '" 0'" ~ .. 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