Airport Advisory Committee

Airport Advisory Committee Regular Meeting Minutes Tuesday, September 20th, 2022 Hot Springs Memorial Field Airport Call to Order Meeting called to Order by Glen Barentine, Airport Director at 12:00 p.m 1. Roll Call by Whitney Bradeen Present- Scott Lauck, Trent Foreman, and Mike Abram Absent- Alex Mouton and Darrin Clark Also Present, Glen Barentine Ruthie Murphy, and Whitney Bradeen 2. Consider Approval of the Agenda Motion to Adopt the Agenda Mr. Abram made a motion, duly seconded by Mr. Foreman to adopt the agenda as presented. All in favor 3. Consider Minutes of the Airport Advisory Committee:  Regular Meeting held on August 16th, 2022 Motion to Approve the Minutes as Presented. Mr. Foreman made a motion, duly seconded by Mr. Abram to approve the minutes as presented. All in favor 4. Consider Approval of Appendix K Increase: Airport Staff recommend approval of Resolution Revising the Airport’s Property Management Policy, Appendix K. The purpose of the Property Management Policies is to set forth and explain certain requirements pertaining to Lease and Use Agreements used by the Airport Staff as guidelines in the development of property and for the use of Land and Building by the general public and establish the rates. The Airport Management is charged with the protection of the existing Airport’s air side needs and is committed to accommodate the future growth of aviation in a safe and efficient manner by providing the necessary airport facilities and services. The Airport operates the Fixed Based Operations (FBO) at Memorial Field; this business provides serve to general aircraft in way of fuel sales, catering service and other aircraft related services. In addition, the FBO provides many other free amenities to the flying public: Internet, Limited use of courtesy vehicle, computer assess for pilots, waiting lounge, restrooms, coffee, ice, and security. Along with these cost the FBO also have the expense of insurance, utilities, personnel and maintenance of the terminal and all asphalt surfaces. Over the years, these expenses continue to grow. Over the past two years, Consumer Price Index (CPI) increased 15.79%. To keep up with rising cost the airport staff recommends a 13% increase across the board for all services. This increase will affect hangars that are month to month and any new leases. Existing lease will not change unless a CPI increase is due in accordance with the lease. This proposed increase will also cover the increase of property tax that the Garland County Assessor has added to airport property that is exclusively used. Price increase will range from $17.87-$89.20 a month. Even with this update, the overall average of the cost per square foot is still below $3.50. Motion to Consider Approval of Appendix K Increase: After discussion, the Advisory Committee agrees Airport Management should increase the Airport’s Property Management Policy, Appendix K, by 13%. The Advisory Committee agrees with Airport Management tenants should be notified of the increase December 2022 and will be effective January 1st, 2023. Mr. Abram made a motion, duly seconded by Mr. Foreman to approve Appendix K Increase. 5. Consider Approval of Update in the Fuel Price Policy: Airport Staff recommend approval of Revising the Article III. Airport Policies and Procedures. In our attempts to increase Aviation Fuel sales revenue to cover increasing expenses, the Airport Staff recommends that an increase in the profit margins of Aviation Fuel sales is necessary and revision to other fuel pricing categories. We have not had an increase in our “Profit Margins” since January 2020. Due to the increases to services and supplies, the airport will need to increase the margins to offset these increases. If the changes in this policy are approved, it will allow Airport Management more flexibility in setting retail prices to meet budgetary amounts. Airport Staff recommend setting a profit margin minimum $1.00 to maximum $2.50. The Airport offers a based discount for the purchase of fuel, the current rate is $.30 off Retail. These will not change with the new proposal. Contract Fuel is Jet Fuel sold by the fuel vendor (Avfuel Corporation) to customers that operate from Hot Springs Memorial Field. The Airport delivers the fuel and is reimbursed the cost of fuel plus is paid a handling fee per gallon. Historically, Contract Fuel Sales was used by the larger cargo and charter companies. These users would take larger volumes of jet fuel. Now industry trends are for the fuel vendors to allow any operator the use of the contract fuel program. 72% of fuel sold is 0-299 gallons. 36% is under 100 gallons. The cost of having a person drive a truck to deliver 10 gallons is the same as it costs to deliver 200 gallons. To recover cost this cost Airport staff suggests changing the into plane rate scale. With these proposed increase it will allow the Airport to increase revenue yet still be competitive within the State. Only 6% of the contact fuel sales are under 50gallons and 33% of the contract fuel sales will see a $.10 increase per gallon. This proposed increase will increase into plane revenue by $39,502.00 based off the same amount of fuel sold over the last 12 months. Motion to Consider Approval of Update in Fuel Price Policy: After discussion, the Advisory Committee agrees with Airport staff setting retail prices to meet budgetary amounts. The Advisory Committee suggests to add one more column on the into plane rate scale for 1-25 gallons for $2.50 Handling fee per gallon to compensate cost of fueling less than 25 gallons. Mr. Foreman made a motion, duly seconded by Mr. abram to approve update in the Fuel Price Policy. 6. Discussion of Airport Finance: Mr. Barentine discussed the year to date budget. He went over the budget adjustments that were due to increasing fuel costs. Mr. Barentine also went over the Utilities and Repair expenses. He stated two of the gates on the field were repaired. 7. Airport Staff Items for Discussion and Announcements: Mr. Barentine discussed Fuel Sales. He stated Avgas sales were lower because of heat. However, Avgas Sales are up 3% and Jet is up 12% compared to 2021. Ramp fees are up 67% more than 2021. Mr. Barentine went over future projects for the Airport including project for Taxiways A,B,C. 8. Advisory Committee Items for Discussion: There were no items to discuss at this time. 9. Adjournment There being no further business to come before the committee, Mr. Abram, duly seconded by Mr. Foreman, that the meeting be adjourned; all in favor, made a motion. DATE: Approved: Mr. Scott Lauck, Chairperson