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01-12-2012 Regular Meeting ~ Peachtree City Airport Authority (PCAA) Regular Minutes Thursday, January 12, 2012 Aviation Center, Peachtree City-Atlanta Regional Airport 7:00 p.m. Members Present: Richard Whiteley, Chairman, Vice-Chairman & Secretary/Treasurer - Bill Flynn, Zaheer Faruqi, Bill Rial. Aviation Director - Bryan LaBrecque, Airport Manager -Hope Macaluso, A.A.E., Airport Attorney - Doug Warner and City Council Members - George Dienhart and Vanessa Fleisch. I. CALL THE MEETING TO ORDER .~ Richard Whiteley called the meeting to order at 7:03 p.m. II. APPROVAL OF MINUTES Bill Rial made a motion to approve the December Minutes, seconded by Bill Flynn. Motion Carries, 4/0. III. REPORTS Announcements - Richard Whiteley Richard noted that Bill Flynn was reappointed to board and a new board alternate - Skip Barnette - was introduced. Skip provides a short self-introduction (airlines background as a former president of ASA with additional background in sales and marketing). George Dienhart was introduced as the newest city councilman, assigned to the Airport Authority. Airport Safety & Operations - George Harrison (Not Present). Bill Rial makes mention ofan event involving two aircraft in the pattern where there was some confusion with terminology used by the pilots. Bill suggests encouraging pilots involved in ,-"" an event such as this, to discuss and fill out proper paperwork associated with the event. Bryan LaBrecque states he will investigate. ~ Finance & Capital Budgeting - 8ill Flynn Bill Flynn reported the audit reports looked in order and were submitted to the city council by the deadline, for their review. Bill Flynn stated the he will be happy to meet with council after their review. Bill Rial encourages board members to attend the monthly financial review, if they have not been a part of in the past. Tenant & Community Relations - Bill Rial Bill Rial had nothing new to report. Marketing - Zaheer Faruqi Zaheer Faruqi had nothing new to report. Operations - Airport Manager, Hope Macaluso ,- Hope Macaluso welcomes new Lead Customer Service Representative and Marketing Representative, Mike Melton. She also mentioned that a new internship program has been initiated and welcomes Alex Graham as the new non-compensated intern to assist Mike and other management members. In addition Hope informs the Board that during December, Hal Waters (Lineman) resigned to move on to a new career opportunity and was replaced by Andrew Johnson. Hope mentions that all the linemen are finishing their NATA "Safety First" training and should be testing in the near future. Hope reports all 5 ODALS are back up and operational. The airport is maintaining several spare parts for the ODALS, in the event of another lighting strike. Hope reports that a Request for Proposal (RFP) for a new fuel provider was sent out and that 4 packages were received, in response. Hope plans to release figures to the Board in February. Hope mentions that the issues involving the email distribution list have been resolved, to the best of our knowledge and suggests that if there are any additional issues to please report them to her, so that she can attempt to resolve them. - Hope notes that Area C has a major issue with erosion and contractors have been contacted to address the issue. There are also ,several locations around the airport that need to be addressed eventually, as well. Hope then addresses the taxiway lighting systems (specifically the in-ground transformers) noting that they were not originally installed properly and leave the lighting susceptible to lighting strikes in the future. She reports that the lights will need to be repaired to prevent further damage. Richard Whiteley asks if a grant will potentially pay for the repairs and Hope Macaluso states that she plans to have all repairs done in-house. Hope mentions that there was a leak on the A VGAS tank at the fuel farm. Danny Sorrells repaired the leak temporarily, however it will eventually need a $700 repair for a more permanent fix. This repair will need to be completed by the fuel contractor. Hope also mentions the issue with the incomplete fence line and states that funding for the fence completion and repair is incorporated in the 2012 Capital Improvement Plan. ,~, IV. FINANCIAL REVIEW - Aviation Director - Bryan LaBrecque Bryan LaBrecque reports a $5,685 net income for December. He also mentions that the airport is in "good shape", as far as cash position is concerned. Overall the operating income was below projection, primarily due to unexpected maintenance repairs that were a result of the lightning strikes that occurred in late November. In addition to the lightning induced repairs, a significant portion of the negative budget variance in the Maintenance Repairs line item resulted from: I) the repair of the ODALS system (up till now considered not repairable), and 2) the cost of refurbishing portions of the hangars and office space, for new tenants who plan to move in early February. ,~ Bryan also mentions that an overage in payroll for the month, resulted from an overlap of the departing of several employees and training of their replacements (Mike Melton and Andrew Johnson). As a result of the personnel changes, there will be a significant drop in payroll expense for January, and moving forward. Bryan also notes that the lower than expected Hotel/Motel tax income for December impacted the net income for the month, negatively. Bryan states that he has completed an analysis of the previous employee healthcare package, and by switching from the current BCBS to United Health Care the airport was able to reduce the annual healthcare expenses by approximately $13,000, while being able to expand the number of covered and keeping the programs consistent. Richard Whiteley asks Bryan the reason for the major savings and Bryan states he was able to shop around to find the best deal. Bryan also noted that the airport has implemented a new employee contribution to employee healthcare insurance premiums, which will save the authority money in the long run. His plan is to slowly increase the employee contribution, as is dictated by changing healthcare costs. He will be looking for guidance from the authority on this topic in the future. He also mentions that the process of shopping around, resulted in a slight reduction to the dental and life insurance costs. Bryan mentions that fuel sales were better than expected and that December Jet A and A VGAS sales were the best numbers the airport has seen for December sales, since 2008. Bryan is pleased to report thattwo new tenants will be occupying hangar and office space starting February 1 st. The airport is working with the new tenants to make them feel comfortable and appreciated. One of the tenants will be providing "on-field" aircraft maintenance as well as additional charter operations, which carry the added benefit of increased fuel sales. ,~ Richard Whiteley comments that the first quarter ended with a promising - $2,769 - positive net income variance and gives kudos to the team for the results. He also mentions briefly the potential for employee profit sharing and payroll changes. Overall he reports that he was pleased that expenses were lower than plan on everything but payroll and maintenance costs, and is equally satisfied that the budgeting process has provided an accurate budget from which management can work. ~ Bryan LaBrecque responds that heis 90% complete with the new profit sharing program and will present the program to the board, once complete. Bryan LaBrecque readdresses Area C erosion issue and states that one of his concerns is that once repair begins, the supporting walls could slide out and empty into nearby wetlands. This issue, and several other erosion concerns around the airport, will need immediate attention. Doug Warner asks if the issue is a design flaw. Bryan LaBrecque answers that a design flaw could be the issue, but also mentions that the ground cover - planted to reduce the potential for erosion - did not "take" as well as planned. Bryan says that the original contractor and additional firms have been contacted to evaluate. Once the evaluation has been completed by the original firm, recommendations will be made. An update will be given to the board as soon as the investigation is complete. Bryan LaBrecque mentions that a few representatives from The Great Georgia Airshow are in attendance and sadly notes that The GGAS has announced that the annual air show has been cancelled for 2012. Bryan noted that it is his understanding that this is only a one-year cancellation and that he has been assured that the show will return in 2013, "better than ever". Bryan makes a note that as a result of the air show cancellation for 2012, the airport will need to consider the impact in next FY budget. He also mentions that the airport and the CAF are discussing future extension ofCAF tenancy. It is the airport's desire to create an atmosphere and financial structure that benefits both parties and will ensure that the Commemorative Air Force is here for a great long time. Report Concluded v. OLD AGENDA ITEMS 08-11-02 Update on Ted Mallory Memorial Plaque Bill Rial states he needs to meet with vendor. Only update for now. VI. NEW AGENDA ITEMS 01-12-01 Election of officers George Dienhart assigned as Airport Authority Liaison for The City Council Bill Flynn nominates Richard Whiteley for Chairman of the Authority. Nomination seconded. Motion carries 4/0 f~ Richard Whiteley nominates Bill Flynn as Secretary. Nomination seconded. ~ Motion carries 4/0 Richard Whiteley, in his duties as Chairman, appoints Bill Flynn as Vice Chairman of the Authority. Richard Whiteley mentions that Zaheer Faruqi will replace Bill Rial as the Airport Authority's representative to the Convention and Visitors Bureau (CVB), for the upcoming year. 01-12-02 Self- Serve Fuel Farm Discussion ,~, As a result of some preliminary questions posed at last month meeting, Bryan LaBrecque opened further discussions on the topic by explaining that a cursory analysis of installing a self- service fuel farm results in no discernable benefit to the airport and little benefit to the tenants. He mentions that the "up front" capital necessary to install the equipment generally results in a significant cost increase, recouped by the equipment owner either in purchase price, or fuel surcharges. Either way, the airport would have to pass this cost along and the resulting fuel price would potentially be higher than the current "full service" price. Bryan estimated that the initial funds needed to purchase and install the new fuel farm would be on the order of $50,000 to $100,000. Bryan LaBrecque confirms to Bill Rial and the Authority, that the airport was indeed, designed with a potential self-service fuel farm in its future. Bill Rial makes note to the board members that he neither supports, nor is against, a self service fuel farm at Atlanta Regional Airport. His purpose in opening these discussions is to forward comments from several tenants fot the Board to absorb. Bill went on to mention that he had contacted a vendor in Wisconsin and mentions that an informal survey of ARA tenants indicates that this particular topic was of keen interest to them. Bill suggests that the ideas of convenience, safety and fuel farm security, are some of the positive outcomes of a self-service fuel farm. Bill noted that a self-service fuel farm has resulted in lower staffing requirements at other airports and may allow for reduced employee expense here. Bill states, from a pilot's perspective, a Self-Serve tank might mean lower- priced fuel for the tenants and transients. Hope Macaluso states that her experience has shown that business pilots do not prefer Self-Serve tanks but that General Aviation Pilots do. Bryan LaBrecque asks Bill Rial if the pilots are looking for convenience or lower cost. ~ Bill Rial states that they are looking for both convenience and lower fuel prices. He also mentions that tenants may not necessarily want lower fuel cost as much as convenience, and 24/7 operations. '","-');11':, l", ,r. .- Bryan LaBrecque indicates that - because of current minimal staffing levels - it is unlikely that installing a self-service fuel farm here at ARA , would result in staffing reductions needed to reduce personnel cost. Richard Whiteley states he understands the qualitative advantages of the Self-Serve tank but would like to know the quantitative advantages. Over all he would like to see the numbers before discussing in detail. As a matter of information, Bill Rial states that the vendor he contacted claims that the Self-Serve tank will pay for itself over time. He also mentions that the vendor claims fuel sales for other airports have increased up to 25% at newer airports. Bryan LaBrecque responds that the Self-Serve tank would most certainly result in increased cost. He went on to say that if installation of a self-service fuel farm increase sales by 25%, the financial analysis would bear this out and it would definitely revise the outlook. Richard Whiteley states he needs more data and would like to see examples of other airports. He also mentions he understands some savings per gallon due to higher volume discounts on fuel. ~ Bill Rial states his intention is to investigate and analyze and to place results on record. Bill mentions that he intends this discussion as more of a workshop discussion. Bryan LaBrecque says he will begin the analysis and report the findings. VII. ADJOURNMENT Richard Whiteley made a motion to adjourn the meeting, seconded by Bill FlYnn. Motion carries, 4/0. Time: 8:11 ~ - PEACHTREE CITY AIRPORT AUTHORITY FINANCIAL SUMMARY Dec2011 Jan 2012 VTO 4022 . Fuel Sales Jet 76,683.96 65,nO.05 374,575.58 Profit - Jet Fuel 20,264.02 17,718.87 100,852.15 Proft % - Jet Fuel 26.4% 26.9";6 26.9% Jet Gaflons Sotd 16,293 14,296 80,084 4023 . Fuel Sales Avgas 43,593.33 36,149.28 198,575.85 Profit - Avgas 6,644. n 5,303.33 29,066.70 Proft % - Avgas Fuel 15.2% 14.]0/0 14.6% Avgas Gallons Sold 8,683 7,185 39,150 Hotel/Motel Tax Income 8,700.00 6,000.00 32,850.00 ~, OPERATING PROFIT/(LOSS) 5,685.81 3,513.11 51,434.71 CASH BALANCE 792,233.79 793,357.13 .~ :'<l.rr;;llti In ~~ ~>~ ::t:~o II> = )>;:l' '" ~o2L iU ~ m ~ ~ g ~ In ~~ .., .. a~oi ;::; ~ g~ .. n ~~ In g~ ""Na ~~.g -." ;g~m ~ "0 VJ ~~~ ." ~ ~ -g~ m - .. o '" UJ .. o '" '" .J:lo..f:.lo..t:lo.&::lto 0000 ~ f-'. ~ ~ \'o"'O'IlJ1 ..... S !!!. ~~ ...0 00 o a. S" II> < -S" a ~ ~.!t In )( ... .. a .. II> '1, :i" II> ::J '" o ... '" ~ z ~ .. ~ .. ::J C .. :; n C ... S" .. ~ II> ~ 3: o ::J .. < z ~ 1: < .. ::J C to '" ~~~~(r a- ~g~~g. . o )>)>~~ ~ ~ii~~ ~ ~-~~ ~ < -I.,I:::.,J:l..J:o.~ ~~~~~ .. ... '" 0 '" " '" 0 " 3: 8 ~ ~. 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