Airport Advisory Board

AGENDA Airport Advisory Board Tuesday, November 23, 2021, 7:00 p.m. Location 3232 Pleasant Street, West Community Hangar DeKalb, Illinois 60115 A. Roll Call B. Approval of Agenda – Additions / Deletions C. Public Participation D. Approval of Minutes – October 26, 2021, attached on pages 4-5 E. Old Business 1. Airport Operations Airport Manager’s Summary: With the opening of R2/20, we have had nothing but positive comments on its significant improvement, and a welcome return to more normal air operations and fuel sales reflective of it. We have made strides on preparing winter operations equipment and vehicles in advance of the inevitable winter weather impacts. Air/Ground Operations Airport Manager’s Summary: The new 100LL AvGas truck was delivered three days earlier than expected on Fri., Nov. 12. The ProFlo/PrimeFlight technician arrived on Tue., Nov. 16 and began commissioning the truck; he completed the work, recirculated the fuel numerous times, and departed on Wed., Nov. 17. The fuel meter is scheduled to be calibrated on Wed., Nov 24, and following that accomplishment, we will be able to refuel piston aircraft using the new fuel truck. Our deice truck hydraulic leak was repaired on Tue., Oct. 26. Our Airport Maintenance Technician, Jim, is in process of replacing the cab’s overhead window due to a discovered water leak at its perimeter. Our Type IV deice fluid was delivered on Fri., Nov. 5. 2. Fuel Revenues Airport Manager’s Summary: October fuel sales as recorded: October 100LL gal Sales JetA gal Sales 2021* 2,671.1 $12,707.81 1,698.0 $12,520.36 2020 5,193.8 $19,384.49 5,692.0 $14,666.25 2019 4,401.2 $19,872.34 5,171.0 $16,349.65 *DKB-4800 Resurface R2/20 construction kept R2/20 closed through Tue., Nov. 2, while R9/27 was concurrently closed Sep. 20 through Oct. 4. Airport Advisory Board Agenda Page 2 of 7 A load of 100LL AvGas was delivered Thu., Oct. 28. A JetA fuel load was received on Nov. 16. Our current 100LL AvGas prices are $5.37/gal, full serve, and $4.87/gal, self-serve; JetA is $4.19/gal. With the new 100LL AvGas fuel truck coming online on Fri., Nov. 26, the Full-Service price will be $.75 above posted Self-serve. In review of tenant fuel purchases, I recommend that starting on Fri., Nov. 26, 2021 all fuel sales are charged at posted prices, with no reduction for tenants. Due to volume purchased, Fly America will be given a $.25/gallon discount off Full-Service price. 3. TIP Projects (Transportation Improvement Program) a. DKB-4556 Replace the Existing Visual Approach Slope Indicator (VASI) Units on Runway Ends 2, 20 and 27 with Precision Approach Path Indicator (PAPI) Units Airport Manager’s Summary: The Flight Check will take place following the completion of DKB-4800 Resurface R2/20. b. DKB-4800 Rehabilitate Runway 2-20 Airport Manager’s Summary: Phase 2 grooving was completed on Tue., Nov. 1. Total Construction days so far have been 79 with 74 workable. The seeding/mulching is to commence on Mon., Nov. 22 and continue through Wed., Nov. 24, which will require R2/20 to be closed for the majority of each day, and the concurrent closure of R9/27 when the intersection shoulders are seeded and mulched. A summary of the direct financial impacts are below: DKB-4800 Resurface R2/20 • R2/20 [7,026’x100’] o closed Aug. 8 through Nov. 2 o 79 days (50 were contracted) • R9/27 [4,201’x75’] o also closed Sep. 20-Oct. 4 o 16 days T-hangar/Fly America rent rebate for 16 days - $(10,546.08) [$659.13/day] Fuel sales Aug.-Oct., 2021 v. 2020 LL gal Jet gal Aug. 2021 5,383 $ 25,186.14 5,004 $ 19,723.56 Aug. 2020 8,204 $ 30,524.96 15,031 $ 42,080.05 Sep. 2021 3,944 $ 18,251.16 2,405 $ 9,326.41 Sep. 2020 4,732 $ 17,585.70 4,898 $ 13,883.90 Oct. 2021 2,671 $ 12,707.81 1,698 $ 12,520.36 Oct. 2020 5,193 $ 19,384.49 5,692 $ 14,666.25 LL 2021 $ 56,145.11 Difference LL 2020 $ 67,495.15 $(11,350.04) Jet 2021 $ 41,570.33 Difference Combined est. loss Jet 2020 $ 70,630.20 $(29,059.87) $(40,409.91) Airport Advisory Board Agenda Page 3 of 7 Fuel sales 2020 v. 2021 (BS&A GL report) 2020 gal sold 20 budget adj fuel purchased revenue $ 438,852.57 $ 433,387.40 $ 328,188.23 $ 105,199.17 2021 gal sold fuel purchased revenue incr rev* $ 410,966.44 $ 282,053.84 $ 128,912.60 $ 23,713.43 *through 10/31 c. DKB-4875 Rehabilitate Taxiway C Airport Manager’s Summary: We received from IDOT the Transmittal Letter, Agreement, and Certification Forms and I assisted Bill in the DocuSign process for submittal. d. Rebuild Illinois Airport Capital Improvement Program (ACIP) Airport Manager’s Summary: No update. F. New Business 1. Fuel Supplier RFP Airport Manager’s Summary: The Airport Advisory Board is requested to approve the attached (pages 6-7) Resolution Authorizing a Fuel Supply/Branding Agreement with Ascent Aviation Group, Inc. for Aviation Fuels and Services to the DeKalb Taylor Municipal Airport from January 1, 2022, through December 31, 2024, which will then be presented to the City Council for approval during their Regular Meeting on Mon., Dec. 13. 2. Airport Improvements a. FBO Redesign Airport Manager’s Summary: The tiny toilet in the first-floor restroom was replaced by a contractor on Thu., Nov.. 11. The water fountain with water bottle filler installation in the FBO central lobby also began on Thu., Nov. 11. Electrical and drywall work was accomplished by Public Works staff and the plumbing contractor will return to complete then installation once the drywall mudding and sanding are completed the week of Nov. 22. b. Solar Installation Airport Manager’s Summary: The contract will be presented during the regular City Council meeting on Mon., Dec. 13. G. Adjournment Airport Advisory Board Agenda Page 4 of 7 DRAFT Minutes Airport Advisory Board The Airport Advisory Board of the City of DeKalb, Illinois, held a Regular meeting on October 26, 2021, at the DeKalb Taylor Municipal Airport, 3232 Pleasant Street, DeKalb, Illinois, in the West Community Hangar. Chair Robert Owens called the meeting to order at 7:02 p.m. A. Roll Call Robert Owens called the roll and the following members of the Airport Advisory Board were present: Richard Dowen, Matt Duffy, Melissa Gallagher, Robert Owens/Chair, Bernard Pupino/Vice Chair and James Rhoades. Also present was Airport Manager Renee Riani. B. Approval of Agenda James Rhoades moved to approve the agenda; seconded by Matt Duffy. Motion passed by a majority voice vote of those present. C. Public Participation None D. Approval of Minutes – September 28, 2021 Matt Duffey moved to approve the minutes of August 24, 2021, meeting; seconded by James Rhoades. Motion passed by a majority voice vote of those present. E. Old Business 4. Airport Operations Renee Riani added: • The July 2020 to June 2021 IDOT Traffic Counts study determined that the average yearly air operations is 44,590. • The IDOT Airports Economic Impact study results for DKB are: o 148 employees o $6.5M – Labor Income o $9.7M – Value Added o $22.0M – Business Revenues o $38.2M – Total Economic Impact o A presentation brochure is forthcoming • An unleaded aviation gasoline has been developed by GAMI and approved for use by the FAA through an STC. Logistics are being determined for refining and distributing to all outlets. No questions or discussion. 5. Air/Ground Operations No questions or discussion. 6. Fuel Revenues Renee Riani corrected the stated “August” fuel sales to read “September.” Airport Advisory Board Agenda Page 5 of 7 The proposed tenant fuel pricing structure was discussed, and the board approved by a majority vote a motion by Matt Duffy which was seconded by Bernie Pupino for Airport Manager Renee Riani to determine the new fuel pricing structure for tenants and any necessary delivery fees. No further questions or discussion. 7. TIP Projects (Transportation Improvement Program) a. DKB-4556 Replace the Existing Visual Approach Slope Indicator (VASI) Units on Runway Ends 2, 20 and 27 with Precision Approach Path Indicator (PAPI) Units No questions or discussion. b. DKB-4800 Rehabilitate Runway 2-20 No questions or discussion. c. DKB-4875 Rehabilitate Taxiway C No questions or discussion. d. Rebuild Illinois Airport Capital Improvement Program (ACIP) No questions or discussion. F. New Business 3. Airport Improvements a. FBO Redesign No questions or discussion. b. Solar Installation Renee Riani shared an update from City Manager Bill Nicklas that the solar agreement will be brought to the City Council for approval on Nov. 8 No questions or discussion. G. Adjournment Bernie Pupino moved to adjourn the meeting; seconded by Matt Duffy. Motion passed by a majority voice vote of those present. Chair Owens adjourned the meeting at 8:11 p.m. Respectfully submitted: Renee Riani, Airport Manager Airport Advisory Board Agenda Page 6 of 7 DATE: November 3, 2021 TO: Honorable Mayor Cohen Barnes City Council FROM: Bill Nicklas, City Manager Renee Riani, Airport Manager SUBJECT: Authorizing a Fuel Supply/Branding Agreement with Ascent Aviation Group, Inc. for Aviation Fuels and Services to the DeKalb Taylor Municipal Airport from January 1, 2022, through December 31, 2024 I. Summary Public Works-Airport requests Council authorize the Mayor to execute a three-year Fuel Supplier/Branding Agreement with Ascent Aviation Group, Inc., World Fuel Services (WFS) to supply aviation fuels and services to DeKalb Taylor Municipal Airport. (Exhibit A) II. Background Staff released an aviation fuel/branding Request for Proposals (RFP) on Tue., Oct. 12, 2021. In addition to releasing the RFP to the public, staff contacted five major fuel suppliers in the region. On Fri., Oct. 29, 2021, the bid concluded, and three proposals (Exhibit B) were received from Epic Aviation Fuels, Titan Aviation Fuels, and Ascent Aviation Group, Inc./World Fuel Services. DeKalb Airport purchases two types of aviation fuels for resale to the local and regional aviation community, JetA and 100LL aviation gasoline. Purchasing aviation fuel through the competitive bidding process is complex. In addition to price per gallon, fuel companies offer a variety of branding incentives to create a value-driven bid. Staff recommends Ascent Aviation Group because of their competitive fuel prices and overall value-driven by their branding incentives listed below: • A global network of operations/marketing • Largest network of Contract flight department users • Timely fuel ordering and delivery • Lower credit card and processing fees • Business development funds • Co-op funding for airport operations • High level of line service staff training and support Airport Advisory Board Agenda Page 7 of 7 III. Community Groups/Interested Parties Contacted The Airport Advisory Board (AAB) recommends the approval of Ascent Aviation Group, Inc. as the supplier of branded aviation fuels and services for DeKalb Airport. IV. Legal Impact The City of DeKalb City Attorney reviewed Ascent Aviation Group, Inc. fuel supply agreement. Fuel purchased under this agreement is purchased for resale. The vendor is the current provider of the City’s aviation fuel, and the City’s long-standing relationship with the vendor has been positive thus far. The vendor has consistently established prices that has enabled the City to be competitive in the region. The City’s resale price will always be higher than the fuel purchase price so the City realizes revenue from the sale of aviation fuel. The City can terminate the agreement at any time upon 30 days’ notice if the vendor’s practice becomes untenable. This proposal has an affirmative staff recommendation. V. Financial Impact The aviation fuel sales are self-funded by selling aviation fuels to the general flying public. During FY2020, the City of DeKalb/Airport sold 63,243 gallons of 100LL AvGas and 73,645 gallons of JetA fuel which resulted in approximately $103,000 in revenue. Fuel sales revenues are accounted to budget line item 650-00-00-34500 Fuel Sales; expenditures for fuel purchased for resale are accounted to line item 650-00-00-55100 Airport Fuel. The Airport Division estimates approximately $130,000 of income from aviation fuel sales in FY2021. VI. Options 1. Approve a three-year agreement with Ascent Aviation Group, Inc. 2. Do not approve the City of DeKalb contract with Ascent Aviation Group, Inc., and rebid fuel supply agreement. VII. Recommendation The Staff recommends approving the three-year fuel supply agreement with Ascent Aviation Group, Inc.