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HomeMy WebLinkAboutMinutes_AIRAB_04.20.2009 Minutes of the Meeting of the Airport Advisory Board City of Georgetown, Texas Monday, April 20, 2009 The Airport Advisory Board of the City of Georgetown, Texas, met on Monday , April 20, 2009. Members Present: Daryl Dressler, John Hopper, Katherine Woods, Paul Smith, Trey Taparauskas, Van Chandler Members Absent: Ken Arnold Staff Present: Travis McLain Minutes Regular Meeting 1. Call to order. Chairman Smith called the meeting to order at 7:00 P.M. 2. Consideration and possible action to approve the Minutes of March 16, 2009, meeting. Van Chandler : I make the motion to approve the minutes of March 16, 2009. John Hopper : I second the motion. Motion approved 6-0. 3. Airport Manager’s Report: March 2009 Monthly Income and Expense Reports Travis McLain : The price of Avgas increased to $3.20 on 4/01/09. I added a new entry to Airport Operations to make comparison of previous fiscal year to current fiscal year. Last month I told you that Avgas sales were down 29% from the previous five year average and jet fuel sales were down 38% from that same (February – five year average). In March the Avgas sales were down 14.21% less the previous five year average and jet fuel sales were down 36.77% less the previous five year average. A comment was made that the Attorney General is really looking hard at all public councils, boards, commissions about discussing business without an agenda. That is one of reason(s) you will see the same item(s) on the Airport Manager’s Report of the agenda each month. Even though I may not have anything that month, it will always be there so that it can be discussed. If it is not on the agenda, it cannot be discussed. Report on Noise Study and Master Plan Update Travis McLain: No report. Report on Council Actions Travis McLain : Council approved the Board recommendation to approve the request of RA General Services, LLC, to extend the deadline for a building permit at 101 and 201 S. Hangar Drive to April 26, 2010. Report on Airport Construction Projects Travis McLain : The project to remove the trees on the eastside of the approach to runway 18 will begin April 27, 2009 and expected to finish by June 15, 2009 (depending on weather delays). The City Manager and the Urban Forrester recommended (after neighborhood comments) that we should plant trees to replace those we are taking down. The Urban Forrester is working with the Fire Department to do some landscaping and plant additional trees at Fire Station No. 4. Control Tower Radar Display Travis McLain: No report. Improvements to Terminal Drive Travis McLain : TxDOT is preparing the bid documents and technical drawings for the improvements, curbing and street rehab for all the airport streets. Also we will add taxiway exits signs so pilots will know where they are at all times and the Tower will tell them what taxiway to take. 4. Consideration and possible action to recommend that Council approve the request of Chartwell Properties, LP, at 300 Service Drive for a Landlord ’s Consent to Leasehold Deed of Trust and the Memorandum of Lease. Travis McLain : Chartwell Properties, LP is building a hangar at 300 Service Drive. This is common practice as we did for R.A. General Services, for the Lessee to obtain permanent financing and gives the banks sufficient collateral. John Hopper : Motion that we recommend to Council to approve the request of Chartwell Properties, LP for a Landlord’s Consent to Leasehold Deed of Trust and the Memorandum of Lease. Daryl Dressler: I second the motion. Motion approved 6-0. Motion carried by unanimous vote. 5. Consideration and possible action to recommend that Council authorize staff to request that the FAA change the operating hours of the Control Tower. Shannon Thomas : (Control Tower Manager) After I looked at this again and talked to Austin Approach Control as to where I wanted to go; they pulled up our traffic account for this year which was only one or no operations between 6:00 A.M. or 7:00 A.M. The FAA instruction says you have to have four operations per hour to consider change in hour. I want to propose the operating hours of the Control Tower to be between 7:00 A.M. to 10:00 P.M. John Hopper : Motion that we recommend that Council authorize staff to request that the FAA change the operating hours of the Control Tower. Van Chandler : I second the motion. Motion approved 6-0. 6. Consideration and possible action to recommend that Council approve and authorize an annual Air Show at the Georgetown Municipal Airport. John Hopper : Since we have an Air Show coming up the first weekend of May in Temple, I would judge that we should let this sit still for a while and revisit it at a later date. Van Chandler : Gabe Sansing says he would support bringing the issue before Council. Trey Taparauskas : I’ve begun preparing a long-term outline and I plan to attend the Temple Air Show. I suggest it is a good idea for all of us to brainstorm for the next several months and if we decide to revisit and bring something before Council to start the process (whethe r one or two year process). Paul Smith : We can table this and continue to place on the agenda for discussion. 7. Discuss Airport Business Plan Travis McLain : I have presented a T-Hangar and Tiedown Chart that shows the last increase was in 2002 and the percentage of increase over time. Van Chandler : The history is good, I am curious as a Board what guidance we have been given by City Council on what our revenue sources are and how we should be pricing things as appropriate to this airport. Should we be trying to make more on fuel, less on hangars or more on hangars and less on fuel? Should we try to generate more revenue by having fuel service fuel; maybe a fuel time attendant? A good start would be for Travis to educate us on exactly where all the revenue comes from in more detail than what we get on the summary page and how that compares to airports like us around the state. It should be an ongoing thing where every month we learn a little more about how we got to where we are and then maybe in a few months we start discussing if we think we are in the right place. Travis McLain : On the fuel price, we try to maintain a .60 to .65 per gallon margin and at the same time remain competitive with other general aviation airports. So far we have managed to do that and show a reasonable profit margin. The amount of money we have invested is in storage, expense, and facility. There is full service on the field and Georgetown Jet Center has a truck. Two FBO jet fuel trucks offer full service. The other two main sources of revenue are ad valorem taxes that are collected on privately owned building since 1983/84. The City Council decided they wanted the airport to be self sufficient and they did not want to put city funds into the airport. So they felt like they needed to let the airport keep the money generated ($20,000 to $25,000 per year). Also, (.50% then) 1% current city sales taxes are collected from the FBO’s (another $20,000 to $25,000 per year depending on economy). Also, revenue of fuel sales, T-Hangars, Tiedowns, and Land Leases which are a constant non-fluctuating sources (even protected from inflation because all the land leases have a CPI -W adjustment every five years). We have five fairly sound revenues with the exception of fuel sales which can go up or down with the economy. We have a pretty solid basis for the income of the airport (fuel sales, T -Hangar, tiedowns and land leases are the biggest items with 1% sales tax falling close behind them). Trey Taparauskas : We have pretty predictable expenses; it seems our expenses are pretty stable. Travis McLain : We have not changed our overhead (with the exception of the Tower). When we went to self-service Avgas we reduced our labor costs (eliminated one full-time position and one part-time position) and have maintained the same level of labor costs for the past nine years. Trey Taparauskas : So you used to have assisted self-service and now it’s self-service? Travis McLain : No, we used to have full-service totally. Trey Taparauskas : You used to have a truck? Travis McLain : No, it was just like a gas station. The old dispensers that we had needed experienced personnel to operate them. The pilot would taxi up to the pumps and the fuel attendant(s) would top them off like old style gas station. But as labor costs kept going up and self-service became more prevalent and they improved the technology to include credit card readers, new pump system and we had the option as a lease purchase (AvFuel paid for it up front). So the Airport was not out any mo ney up front. We paid $750/month for seven years and bought the system for a dollar. We own the system free and clear. Van Chandler : I guess what I am trying to throw out there, if we know what our annual expenses are going to be, should we, once a year, get a budget committee together and figure out what our pricing on hangars, gas and stuff should be for that year to cover our expenses; plus a reasonable rainy day? Or should we continue on with this historical margin; or should we go back and look at it annually? How big is our rainy day fund right now? Travis McLain : Every year, the City has a policy for all the enterprise funds that they have to keep minimum cash reserve of $150,000.00. The 2008-09 budget they estimate (in additional to the $150,000.00) $546,000.00 in reserve. The estimate for 2009-10 is again $450,000.00 contingency fund and $658,000.00. Of course we will spend over $100,000.00 on the obstruction clearing and land acquisition project on the south end and fence relocation, total well over $1,000,000.00. Our 10% will be $100,000.00. Trey Taparauskas : I think further decision each year is a good idea because I ’m curious now, introducing this, what point do we decide that number is just right, too high, too low, or do we look at that an d decide now we can spend a few dollars and do this. I think an annual review would be a great idea and this information is helpful and makes us better able to make decisions. John Hopper : Just an observation, I heard on the news today that the Austin Po lice Department is looking for a place to operate their helicopters; they are ready to move out of Bergstrom due to costs. Trey Taparauskas : Yes. They are spending $30,000.00 per month on their lease. John Hopper : The Austin city limit is not very far south of here for a helicopter response. Paul Smith : Travis maybe next year at this time you could provide an update on the agenda of the business plan and where this is. Travis McLain : Anytime any of you have questions about budget expenditures, reven ue, costs, my office is available. I will be glad to sit down with any of you; I am a prolific record keeper. Paul Smith : Let me speak of one other thing, I sent a letter to the Mayor advising him that I will retire from the Board after this meeting. This will be my last meeting. I want to say to you all that this has been a pleasure to interact with you all. This group does a good job and as an aviation person, having been here ten years, I’m flattered having been able to be a part of that. 8. Consideration and possible action for setting Agenda Items for the May 18, 2009, meeting. Agenda item(s) for the May 18, 2009 meeting: A. Discuss the Air show. B. Discuss Business Plan for the Airport. 9. Adjourn. Katherine Woods : I make the motion that we adjourn. John Hopper : I second the motion. Motion approved 6-0. Adjourned: 7:30 P.M.