Airport Commission

AIRPORT COMMISSION MEETING Monday, April 10, 2017 at 4:30 pm Murfreesboro Municipal Airport Terminal /Administration Bldg. 1930 Memorial Blvd. Murfreesboro, TN 37129 MEETING MINUTES IN ATTENDANCE: COMMISSION MEMBERS: Steve Waldron , Chair George Huddleston Jr., Vice Chair Clay Cook Bill Shacklett, Council Rep. Butch Jones GUESTS: CITY: Steve Johnson, Eastern Aviation Fuels Jim Crumley – Assistant City Manager Shelby Hinton David Ives – Assistant City Attorney Frank Stevenson Mike DeWeese Bob Kinney Jim Gardner Chuck Williams Gary Davis James Laws Michael Carr Robert Scovill Mark Baker STAFF: Chad Gehrke – Airport Manager Kent Scoles – Operations Assistant Prayer given and Pledge of Allegiance lead by Steve Waldron. 1. CALL THE MEETING TO ORDER: Steve Waldron called meeting to order. 2. MOTION TO APPROVE MINUTES: Motion to approve the minutes from the last meeting in March 13, 2017 by Butch Jones, seconded by Gail Zlotky with all in favor, no opposed. 3. EVALUATION OF AVIATION FUEL PROVIDER SEALED BID PACKETS: Chad Gehrke presented sealed bid packets that were received from Avfuel Corporation and Eastern Aviation Fuels, Inc. He also reviewed the score sheet. George Huddleston lead the review of the packets. He pointed out that there was only a $5 difference between the two companies and the pricing information that they provided with Eastern Aviation Fuels providing the higher price. He pointed out that Eastern Aviation Fuel’s packet stated that Eastern had over 40 branded airports within 100 miles to split fuel with while Avfuel’s packet stated that there are only two airports within 100 miles. George Huddleston pointed out that Eastern was going to provide an older model avgas and Jet A refueling trucks for free over the first term of the agreement. Avfuel was going to charge over $2,600 for a monthly rental of an Avgas and Jet A refueler trucks. Chad Gehrke reviewed the information provided by the two companies regarding credit cards and associated fees. He reviewed the issue with the Shell Aviation card that occurred several months ago with Eastern taking over the Shell Aviation card and individuals not being allowed to continue their credit card contracts. Mr. Gehrke reviewed the credit card information with Avfuel providing a card only for their Jet A customers. Eastern had a couple of options for customers either directly through them or through a Shell card provided by Citi Bank. The AvFuel card did have processing fees unless it was through their contract program while the various Shell cards would all have no processing fees. George Huddleston and various members of the Airport Commission discussed various aspects of the packets and the information provided. The Airport Commission agreed that Eastern Aviation Fuels was the apparent selected firm but they would like to compare the prices that Eastern provided with historic prices. 4. CONSIDER ACTION ON AVIATION FUEL PROVIDER SEALED BID PACKETS BASED ON RESULTS OF EVALUATION: George Huddleston moved that Eastern was the apparent selected firm but historic prices was required. Butch Jones seconded the motion and all voted in favor with Gail Zlotky abstaining. 5. CONSIDER APPROVAL OF PROPOSED T-HANGAR LEASE AGREEMENTS: Chad Gehrke began his presentation with a review of recent Federal Aviation Administration (FAA) reviews and rulings on airport land use and rental space. He stated that the review had occurred over several years and included discussions and inputs from various aviation organizations such the Aircraft Owners and Pilots Association (AOPA) and Experimental Aircraft Association (EAA). Through these reviews and discussions many improvements were agreed upon. Mr. Gehrke reviewed a few specific items that were focal points of the discussions. The Airport Commission reviewed the proposed Lease Agreement provided by Mr. Gehrke. The Airport Commission reviewed each item with discussion on some specific items. Clay Cook discussed his interest in changing the sublease and assignment item to include an opportunity for a tenant to sublease their hangar for at least a short period of time should there be a period that the tenant’s aircraft is out of the hangar for maintenance for several months. The Airport Commission discussed the proposed items regardless the steps the Airport Manager could take if a tenant had not paid rent in a timely manner. They also discussed credit card fees and if credit card fees should be charged. The Airport Commission discussed the requirement for airworthy aircraft and vacant hangars and the proposed language that Mr. Gehrke had shared with them. The Airport Commission various notifications and acceptable time lines for a customer to receive maintenance on their aircraft and how to best receive information from a tenant to demonstrate that their aircraft is airworthy. The Airport Commission agreed that they would like additional time to review these items and then meet in a couple of weeks for further discussion and action. Mr. Huddleston stated his desire to get an agreement in place so that the updated proposed agreement could go before City Council and then out to our customers in a timely manner so that they have plenty of time to review it. The Members of the Airport Commission agreed with that plan. 6. AIRPORT MANAGER’S REPORT: Chad Gehrke reviewed the latest information regarding the Southwest Airlines proposal for modifications to the Tennessee Aviation Equity Fund fuel tax structure. 7. RECESS George Huddleston moved to recess the current meeting and reconvene April 25th at 4:30 pm. Gail Zlotky seconded the motion and all voted in favor. 8. CONSIDER APPROVAL OF FUEL PROVIDER SEALED BIDS: Chad Gehrke reviewed with the Airport Commission information that he calculated regarding the proposed fuel price that Eastern Aviation Fuels had provided versus historic pricing. He stated that between the Jet A and Avgas fuels the proposed prices were $0.07 higher than the historic prices. Mr. Gehrke stated that he had only run the numbers based on one week in the middle of August 2016. The Airport Commission discussed that additional comparisons would have been a better test. The Airport Commission discussed all of the various items that Eastern Aviation Fuels were proposing to provide the Murfreesboro Airport and the cost saving was overwhelming. Clay Cook moved to approve a contract with Eastern Aviation Fuels. George Huddleston second the motion and all voted in favor. 9. RECONVENE All Members of the Airport Commission were present including John Polk. Airport Commission Chair Steve Waldron called the meeting back in session. 10. CONSIDER APPOVAL OF PROPOSED UPDATE OF T-HANGAR LEASE AGREEMENTS: Chad Gehrke reviewed the proposed T-hangar Lease Agreement with amendments including various items based on the last discussions the Airport Commission had. Mr. Gehrke stated that he did not include credit card fees in the agreement. He provided a survey of 11 airports with all but two not charging any credit card fees. Mr. Gehrke stated that David Ives had included language allowing for subleases and assignment of the T-hangar unit for a short-term time period. The Airport Commission discussed whether the Lease should be renewed each year or they preferred the one year month to month arrangement currently in place. They agreed with the current language and asked David Ives to change the proposed language back to a one year month to month arrangement. The Airport Commission discussed late fees and agreed with the language and rates proposed. The Airport Commission discussed and agreed with the proposed various step plan dealing with airworthy aircraft and vacant hangars. They agreed with requiring that each T-hangar customer provide a copy of their aircraft annual inspection. The Airport Commission discussed proposed language that strength and reinforce where cars could be parked around the T-hangars. The Airport Commission agreed that action regarding parking was not necessary at this time. After much discussion the Airport Commission Chair Steve Waldron opened the floor to those in attendance. Mark Baker spoke in favor of the proposed T-hangar Lease Agreement. He did not see a problem with current auto parking practices. Shelby Hunton spoke in favor of the proposed Agreement. He talked about taxiing around parked cars parked along the side of hangars was not an issue. Jerry Swick agreed that parked cars were not an issue. Bob Kinney spoke and agreed with his fellow T-hangar customers. Gail Zlotky moved to approve the proposed Lease Agreement including the changes asked of David Ives. Butch Jones second the motion and all voted in favor. 11. CONSIDER APPROVAL OF PROPOSED FY2018 BUDGET: Chad Gehrke presented the FY2018 Airport Budget with the Airport Commission. He stated that this year’s proposed budget was very similar to the previous year’s budget as many of the large projects such as the Terminal and others were on the CIP budget. The Airport Commission discussed several items. George Huddleston asked Mr. Gehrke to get a clarification on the Part-Time number since it should a large increase compared to the previous year. George Huddleston moved to approve the budget. Clay Cook seconded the motion and all voted in favor. 12. CONSIDER ANY OTHER BUSINESS TO COME BEFORE THE AIRPORT COMMISSION: No new business at this time. 13. CONSIDER NEXT DATE FOR AIRPORT COMMISSION MEETING: Next Airport Commission meeting is scheduled for May 16, 2017. 14. ADJOURNMENT: Clay Cook moved to adjourn and Gail Zlotky second. All voted in favor.