Board of Aeronautic Commissioners

The City of Lee's Summit Action Letter Board of Aeronautic Commissioners Monday, June 11, 2018 7:00 PM City Council Committee Room City Hall 220 SE Green Street Lee's Summit, MO 64063 Call to Order Chairman Mall called the June 11, 2018 Board of Aeronautic Commissioners meeting to order at 7:00 p.m. Notice of said meeting was provided by posting the meeting notice with a tentative agenda, at least 24 hours in advance of the meeting, at both entrances to City Hall. Roll Call Commissioner Nelson arrived at 7:15 p.m. Present: 8 - Chairperson Phil Mall Vice Chair Ken Stremming Commissioner James Brady Commissioner Paula Derks Commissioner Joseph Towns Commissioner Tom Townsend Commissioner Molly Waller City Council Liaison Rob Binney Absent: 1 - Commissioner Darryl Nelson Approval of Agenda A motion was made by Vice Chair Stremming, seconded by Commissioner Derks, that the agenda of June 11, 2018 be approved. The motion carried unanimously 7-0. (Commissioner Nelson absent). Approval of Action Letter 1. 2018-2092 Action Letter dated April 9, 2018 A motion was made by Commissioner Derks, seconded by Commissioner Brady, to approve the April 9, 2018 Action Letter. The motion carried unanimously 7-0. (Commissioner Nelson absent). Public Comments None Business The City of Lee's Summit Page 1 Printed on 10/9/2018  Board of Aeronautic Commissioners Action Letter June 11, 2018 2. BILL NO. An ordinance authorizing an amendment to permit the extension of the project 18-97 time period from December 31, 2017 to December 31, 2018 of the State Block Agreement by and between the City of Lee's Summit, Missouri, and the Missouri Highways and Transportation Commission, Granting State funds in the amount of $9,372,772.00 for rehabilitate and strengthen Runway 18-36, Extend Runway 18-36, Extend Runway 11-29; and Runway 18-36 and 11-29 lighting improvements. (BOAC 6-11-18) (PWC 6-19-18) A motion was made by Commissioner Towns, seconded by Vice Chair Stremming, to recommend to City Council approval of an ordinance authorizing an amendment to permit the extension of the project time period from December 31, 2017 to December 31, 2018 of the State Block Agreement by and between the City of Lee's Summit, Missouri, and the Missouri Highways and Transportation Commission, Granting State funds in the amount of $9,372,772.00 for rehabilitate and strengthen Runway 18-36, Extend Runway 18-36, Extend Runway 11-29; and Runway 18-36 and 11-29 lighting improvements. The motion carried unanimously 7-0. (Commissioner Nelson absent). 3. 2018-2101 Airport Financial Report Year to Date April 30, 2018 Darlene Pickett, Finance Controller, presented the Airport Financial Report Year-to-Date April 30, 2018. Reports through April 2018 show the Airport fund with a net operating loss of $581,818. The fund has operating revenues of $1,999,979 against expenditures of $1,781,798. Nonoperating items and transfers bring the fund to a year-to-date net loss of $3,611,645. When depreciation expense of $528,658 is excluded (added back), net losses adjusted for depreciation are $3,082,987. Pending grant reimbursements make up $6,737,306 of this loss amount. Operating Revenues are below budget (10%) and above prior year $126,974 or 12%. Rental revenues are below budget by 16% for FY18 and down less than 1% ($862) compared to last year. This drop below budget and last year is due to the tenants leaving the open T-hangars and the S&L hangars prior to their demolition in March. When the budget was prepared last year, it was anticipated that the units were not going to be removed until later in the year. Fuel revenues are below budget $11,260 (2%) and up $125,674 (26%) compared to last year. Overall, sales in gallons increased 15,587 gallons or 12.5% compared to last year. In gallons sold, MOGas is up 2,891 gallons or 68% and JetA is up 10,116 gallons for a 20% increase. Note, the airport was closed last year to take offs and landings from 4/17/17-5/9/17 and Runway 18/36 was closed until the end of September 2017. Expenditures are over budget $90,022 or 5%. Maintenance & Repairs is $53,488 or 111% over budget. Large expenditures in this category include roof repairs, carpet, and painting for Hangar 1 totaling $22,000. Boiler and siding repairs totaled $25,000. Supplies for Resale (fuel is the primary item in this category) is $41,561 or 12% over budget and up 22% over last year. This is due to increased gallons purchased (see revenues above) along with rising costs. The City of Lee's Summit Page 2 Printed on 10/9/2018  Board of Aeronautic Commissioners Action Letter June 11, 2018 This Report was received and filed. 4. 2018-2099 Staff Report, Fuel Sales & Fuel History John Ohrazda stated that in addition to the posted Staff Report, a Tri-Motor was at the airport last week. There was a good turnout for the event. A tenant meeting was also held on June 9. Twenty five people attended, including 8 people who had never attended one before. People were happy with the decision to extend the two weeks to get the hangars done. Mr. Bob Hartnett, Deputy Director of Public Works, noted that dust has been an issue from the dry conditions. The City had heard from a tenant and an engineer had already made contact with him. The Airport Open House is on June 23, on the east apron. The Lee's Summit Airport will be a stop on the Air Classic Race in June 2019, which is a two-day event. It will tie into the 2019 Airport Open House. The B-17 is also a possiblity next year. Mr. Ohrazda noted that there is always something going on at the Airport. There was a Missouri Department of Transportation (MODOT) event at Hangar 1 that evening. The B-17 was here on a stop before going into the downtown Kansas City airport. Councilmember Binney asked about Hangar 1 activity. Mr. Ohrazda stated in August that One Good Meal will host an event for 150 people in the hangar. Commissioner Waller asked if the Airport has a tug; Mr. Joel Arrington, Assistant Airport Manager, replied yes for attachments. Commissioner Brady asked if staff is trained on the tug, and Mr. Arrington replied that yes he does all the tow training. All staff even have whistles that were issued to them. Mr. Hartnett stated that staff also have National Air Transportation Association (NATA) training. Per Mr. Ohrazda, all line personnel are trained. This Presentation was received and filed. Roundtable Commissioner Brady reminded all about the Pancake Breakfast this Saturday, June 16, with Young Eagles. Commissioner Stremming commended Mr. Hartnett on the speech he gave at the Airport Tenant Open House. Commissioner Towns again noted his concern with line of flight and approach patterns, and thinks they should be changed to be over concrete roads and not the houses surrounding the Airport. He also mentioned that a sign needs to be The City of Lee's Summit Page 3 Printed on 10/9/2018  Board of Aeronautic Commissioners Action Letter June 11, 2018 placed on the highway to note that the Airport is in this direction. Councilmember Binney noted that budget items were mentioned in the CIP plan in April, and Mr. Hartnett verified Council voted 5-1 on June 7 for approval. Councilmember Binney also noted that the public should get to know their newly elected officials. Mr. Hartnett reminded the BOAC that the Lee’s Summit Airport Runway Improvements project was announced as a Public Works Transportation Project of the Year by the Kansas City Metro Chapter of the American Public Works Association (APWA). The $18 million project won in the transportation category for projects more than $5 million but less than $25 million. Commission Mall told a story about a drone that had been lost, and found atop the WWI museum in downtown Kansas City. Several discussions took place regarding flying drones near the airport. Adjournment Commissioner Mall adjourned the June 11, 2018, meeting of the Board of Aeronautic Commissioners at 7:51 p.m. at City Hall, 220 SE Green Street, City Council Committee Room. For your convenience, City Council agendas, as well as videos of City Council and Council Committee meetings, may be viewed on the City’s Legislative Information Center website at "lsmo.legistar.com" The City of Lee's Summit Page 4 Printed on 10/9/2018