Airport Advisory Commission

A G E N D A Airport Advisory Commission Executive Conference Room – 800 Municipal Drive September 8, 2015, at 4:00 p.m. ITEM 1. Call Meeting to Order 2. Approval of Agenda 3. Approval of Minutes from the August 11, 2015 Airport Advisory 1 Commission Meeting 4. Operations Report 4 5. Business From: Chairman Members Staff Floor 6. Adjournment For information regarding any item scheduled on this Agenda, please contact the Airport Manager’s Office at (505) 599-1394. ATTENTION PERSONS WITH DIABILITIES: The meeting room and facilities are fully accessible to persons with mobility disabilities. If you plan to attend the meeting and will need an auxiliary aid or service, please contact the City Clerk’s Office at 599-1106 or 599-1101 prior to the meeting so that arrangements can be made.  M I N U T E S AIRPORT ADVISORY COMMISSION August 11, 2015 The Airport Advisory Commission of the City of Farmington met on Tuesday, August 11, 2015, at 4:00 PM, in the Executive Conference Room in the Municipal Building, 800 Municipal Drive, Farmington, New Mexico. Members Present: Chairman Richard Neely Tony Bennett Wayne Mangum Steve White Teresa Pacheco (alt) Members Absent: John Arrington Staff Present: Bob Campbell Russel Frost Mike Lewis Dee Dee Moore Others Present: Cliff Booton - Hertz Debbie Meador – Great Lakes Jaade Plante – Atlantic Aviation Kathy Williams - Hertz Call to Order The meeting was called to order at 4:00 p.m. by Chairman Neely, there being a quorum present; the following proceedings were duly had and taken. Approval of the August 11, 2015 Agenda Commissioner White made a motion to approve the agenda. The motion was seconded by Commissioner Magnum and passed unanimously by a vote of 5-0. Approval of the Minutes of the July 14, 2015 Regular Meeting of the AAC Commissioner Mangum made a motion to approve the minutes of the July 14, 2015, regular meeting of the AAC. The motion was seconded by Commissioner White and passed unanimously by a vote of 5-0. Recommendation the Minimum Monthly Guarantee rent for Car Rental Agencies located in the Four Corners Regional Airport Terminal Airport Manager Mike Lewis began with statistics showing the relation between the passenger numbers (approximate reduction of 20%) and the reduction in car rentals (about 20%). In 2013 only 11 of 40 payments received were above the minimum guarantee (gross sale of over 1 $25,000 per month). During all of 2014 and year-to-date 2015 all rent payments have been at minimum monthly guarantee ($2,500 per month). Mr. Lewis stated that over the course of the last few months, the agencies are looking for some relief in their rent due to the reduction in passengers. Staff would like to recommend, if order to maintain the same number of agencies we currently have in place at the airport, to lower the minimum monthly guarantee to half the current rent or $1,250 per month. Chairman Neely asked if this reduction would affect the airport operating budget, since it would be a annual reduction from $120,000 to $60,000. Mr. Lewis stated that it would not impact the airport and is a reduction that is manageable. Commissioner Bennett asked how long would the reduced minimum monthly guarantee be in effect. Mr. Lewis stated that the best indicator would be when the number of boardings/enplanements increase, then revenue would increase and the minimum monthly guarantee could return to the current rate of $2,500 minimum monthly guarantee. Chairman Neely made a motion to temporarily reduce the minimum monthly guarantee for the car rental agencies located within the Airport Terminal at Four Corners Regional Airport from the current amount of $2,500 per month, to $1,250 per month and if gross revenues reach $25,000 than the amount of rent would be 10% of gross. Assistant City Manager Robert Campbell suggested that the motion include a review date of the end of the fiscal year, or June 30, 2016. Chairman Neely amended his motion to include the review date of June 30, 2016. Commissioner White seconded the motion and it passed unanimously by a 5-0 vote. Operations Report Airport Manager Mike Lewis reported that the numbers are a little higher in July and that Great Lakes Airlines has begun, in August, a flight to Los Angeles, California with 1-stop in Prescott, Arizona. Great Lakes is also waiting for the right time to address the 9-seat limitation. Mr. Lewis also added that if the numbers drop below 2,500 than the airport is no longer considered as a commercial airport. Mr. Lewis explained that some airline carriers, like Republican are offering sign-on bonuses, so when the Great Lake pilots get their 1,500 hours they are moving to where the money is. This is affecting the industry especially with the huge retirements expected because of the mandatory age requirement. Chairman Neely asked how many flights a day depart from Farmington. Mr. Lewis stated that there are six (6) flights a day, Sunday through Friday and five (5) flights on Saturday. The Air Traffic numbers are projected to be about 31,650 versus 33,000 last year. Mr. Lewis added that he has personally notice that where the Conoco jet used to come in a couple of times a day, they are now only arriving a couple of times a week. Atlantic Aviations historically the fuel flowage was 465,175 in 2014 and 387.589 in 2015 for a loss of 77,000 gallons at $ 0.06 per gallon which equals a loss in revenue to the City. Mr. Lewis continued identifying the projects currently in process at the airport. The REIL Runway End Identifier Lights on runway 7-25 will be worked on from 10pm-6am. Staff is still waiting on a date, since their supplies have not yet arrived. Plans are underway to paint all the taxiways, except B (which was painted last summer) with the next couple of weeks. This is expected to have a minimum impact on operations. This will also allow the airport to begin staggering the painting. State funding has been requested. 2 The Erosion Control Project at the end of Runway 7 is on hold until the archeological study is completed. Staff is waiting for the go ahead from the FAA. This project may need to be moved to next year. Mr. Lewis informed the Commission that he was in training during last month’s meeting, he passed the certification and is now a Certified Airport Manager The “No Worries” restaurant is now open and the patio is in the final stages. They have requested an addendum to the liquor license to include the addition square footage of the patio. Mr. Lewis states that he has been told the revenue is good to date. The restaurant also now has it’s own address of 1298 W. Navajo Street. The property located “behind the fence” at 1899 W. Navajo is scheduled to close this month. This report will be update for the next meeting. Business from the Floor: There was no business from the floor. Business from the Chairman: There was no business from the Chairman Business from the Commissioners: Commissioner White congratulated Mr. Lewis on his certification. Business from the Staff: The recommendation for Temporary Business Permanent for Black Bart Aviation will be placed on the consent agenda for the August 11, 2015, City Council. Mr. Sisson has complied with all the criteria asked for in the Minimum Standards and City Ordinance. Mr. Lewis stated that he spoke with a gentleman that is interested in building another large hangar (like Scott Tubbs) here versus Durango, because the weather is better and there are 2 runways instead of one. Commissioner Pacheco asked where this size hangar could be built. Mr. Lewis stated that the 3 T-Hangars may need to be relocated and asked the Commission to be thinking about a location. Mr. Lewis also shared that he spoke with the land owner to the north of the airport property and is hoping that this will be a alternative to Public Works currently dumping debris on Navajo. The discussion included being allowed temporary access, installing a gate on the north fence, and dumping into the deep runoff areas. This may also be an opening in the discussions for future commercial developable land to the north. Adjournment: There being no further business to come before the Commission the meeting was adjourned at 4:28 pm. _____________________________ ______________________________ Richard Neely - Chairman Dee Dee Moore – Administrative Aide 3 OPERATIONS REPORT August 2015 4 5 6 7 8