Airport Commission

AIRPORT COMMISSION MEETING Monday, April 9 and 30, 2018 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 John Polk Gail Zlotky, MTSU Aerospace Department GUESTS: Tommy Sloan, Tenant Shelby Hunton, Tenant Gene Sloan, Tenant Tim Quigley, Tenant Steve Sloan, Tenant Cindy Cook, Tenant David Swindler, Tenant Larry Williams Jim Gardner, Murfreesboro Aviation Mike Jones, Mike Jones Aircraft & Sales Mark Baker, Tenant Bob Kinney, Tenant Michel Deweese, Tenant Larry Lucinski Nick Lenczycki, MTSU Aerospace Department Robert Davis, Tenant Donald McDonald Frank Stephenson, Tenant STAFF: David Ives, Assistant City Attorney Chad Gehrke, Airport Manager Jennifer Hodgdon, Airport Administrative Assistant Prayer given and Pledge of Allegiance lead by George Huddleston Jr. 1. CALL THE MEETING TO ORDER: Steve Waldron called meeting to order. 2. CONSIDER APPROVAL OF DECEMBER 4, 2017 AIRPORT COMMISISON MEETING MINUTES: Gail Zlotky moved to approve the minutes as is. Gail Zlotky stated there was one correction to be made, the spelling of her last name which was noted. Clay Cook seconded the motion, and all voted in favor. 3. CONSIDER INFORMATION PROVIDED BY AIRPORT MANAGER REGARDING CURRENT PROJECTS: A) Terminal Chad Gehrke reviewed with the Airport Commission that ATKINS is handling the site work, the Michael Baker firm is handling the building. Mr. Gehrke reported that the City has a company called Sevalus which will be the Owner’s Rep for the Terminal Project handling the bid process, contracts and communicate with Michael Baker. Mr. Gehrke reported that we are not at the point where we can go out for bid. Chad Gehrke is hoping that after the next few meetings he would be able to share with the Airport Commission the timeline of going out for bid. George Huddleston Jr. expressed his concern that we will not meet the timeline that was initially proposed as far as having the proper information to go out for bid, since we have yet to receive that information. George Huddleston Jr. is asking if we should consider moving some projects around to meet our fiscal year budgets, etc. Chad Gehrke went over the plan that Sevalus has set forth as far as a timeline with the terminal project to get the project back on schedule. Steve Waldron discussed the issues that have stalled the terminal project with the changes in architects at Michael Baker that have delayed the terminal project moving forward. Chad Gehrke stated that Sevalus is taking over the conversation with Michael Baker to discuss our timeline but as for right now there isn’t a clear plan in place. Steve Waldron also stated about taking the project away from Michael Baker and moving another direction. Stave Waldron asked to table that discussion as of right now. B) TDK Hangar Chad went over the debate for the proper fire system between foam or sprinkler deluge system. Both require certain pressures and certain amount of water. The TDK Fire Engineer contacted Chad Gehrke and went over the requirements with him regarding the 8” or if a 10” will be required. Steve Waldron asked if we received an estimate back if they require a 10” and Chad Gehrke stated yes it will be several hundred thousands of dollars. Steve Waldron stated there would be significant upfront costs either way for this line. He also pointed out that whatever system is approved will set the standard for the future projects on the North End. The City Codes will be making that determination and is working with TDK and their engineers. C) DeJarnette Lane overhead utilities Steve Waldron addressed some old business regarding the electric line burial on DeJarnette Lane at the end of Runway 18. He stated that the cost of this would be $350K to accomplish. Mr. Gehrke explained how the lines are not penetrating the Approach Surface but appear that they are still very close and could be an issue if a pilot comes in low at all. D) Hangar 3 Lean-To George Huddleston Jr. asked to reach out to local companies to provide an estimate on the cost of this project and design within 24 months so we can make this part of next FY Budget and use CIP Funds. D) AWOS Chad Gehrke went over installation is in place and active on Foreflight. 4. CONSIDER RESULTS OF NDB STUDY AND ACTION TO TAKE: Chad Gehrke stated that the Airport Staff conducted a survey in regard to the NDB after the FAA check ride. The NDB Study showed there was 42 people that no longer use the NDB, 2 people have used it and 1 other may be using it besides our base customers. Those are some of the examples from this study. Steve Waldron asked what the costs of are keeping the NDB active, Chad stated $2200-2500 per year, electricity is the biggest cost and an additional $130 per month to keep an FAA approved mechanic to maintain and check the system. This NDB is not a FAA Facility, it’s a City owned facility. Gail Zlotky stated that there are people all over the world that use NDBs. As a training facility Gail Zlotky states it’s worth having active here at MBT. George Huddleston Jr. states that if you are filing IFR for MBT that pilots would have to choose an alternate airport such as Smyrna if GPS is the only approach offered here on the field. Gail Zlotky moved to approve to retain the NDB Active as recommended. The motion did not receive a second. George Huddleston Jr. moved to approve that we decommission the NDB, Clay Cook seconds this motion, and all voted in favor and Gail Zlotky nay. 5. AIRPORT MANAGER’S REPORT REGARDING THE PROPOSED FY19 AIRPORT BUDGET: Chad Gehrke, provided Airport Commission Members spreadsheets discussing the budget. Mr. Gehrke went over how the process is slightly different this year then years past. It’s a 2 Step budget, Continuation Budget and Actual Budget plus any changes to personnel and fixed assets. Chad provided ideas and concepts in regard to personnel changes if any are to be made this coming fiscal year which ideally those changes will go through the HR Department at City Hall. Budget Revenue: Chad shows the FY18 vs FY19 in a spreadsheet which goes over the following information 3% increase on T Hangars, MTSU and other various rents. Hangar 3’s rent is based on the Southern Urban Index. The only difference is 100% occupancy which is what the airport remains at currently. Chad discussed the program we offer to tenants that when they pay 11 months they get the 12th month free and the advantages of offering that program versus the loss of income for that 1 month. Chad Gehrke stated that he is always conservative on the fuel sales predictions. He plans for worst case scenario on fuel for this coming fiscal year although with the runway extension finally completely open that may change and show an increase in sales with more aircraft landing at MBT. MJAS still needs space, we would have to provide Mike Jones with a rental unit if the terminal project moves forward so there will be rental income based on providing him with a unit as well. Steve Waldron asked the Airport Commission Members if the Annual Payment Plan is something they still want to offer our tenants. Chad stated the benefits of offering this program is that we receive a large sum of revenue right up front in July from tenants taking advantage of this program. Clay Cook, Bill Shacklett, George Huddleston Jr. all agree it’s a great program and to keep offering it. George Huddleston Jr. suggested about building a lean-to versus a temporary building might be a much cheaper option. George Huddleston Jr. moved to approve the Airport Revenue Spreadsheets as recommended. Gail Zlotky seconded the motion, and all voted in favor. Airport Improvements: Mr. Gehrke reviewed the various Projects FY18 and FY19, FY18 including Fuel Farm Grant, FAA Flight Check, Runway Extension and each projects funds. Mr. Gehrke also reviewed the status of the new proposed security gate and sale of property at the corner of Memorial and Airport Road. He discussed the Taxiway F development area planning effort. He also stated that the proposed budget included office equipment. He stated that the Fuel Farm Grant is for the design and engineering of a new Fuel Farm. Chad Gehrke stated there is an overwhelming cost of the new fuel farm design compared to what was originally calculated. He stated that the estimated cost went from $800K to almost $1.6 million. The reason for the increased cost is the complications in construction and monitoring of all of the underground fuel lines. Mr. Gehrke reported that we have the Jet A Fuel Truck online, and servicing customers which has been a very positive addition for the airport. It allows us to not have to tow aircraft over to the Fuel Farm which saves time for the customer and staff. Success with fuel truck service may change how we design the future Fuel Farm Plan. The specifications for the Fuel Farm have changed and what the requirements are when fuel passes through filtration is required to go through a stainless-steel pipe which is very costly. George Huddleston Jr. reiterated that we can run it through a Triple Wall Plastic Pipe with filtering it at the end. We are looking at multiple options for the Fuel Farm with what will be the best option and cost effectiveness as well. Mr. Gehrke stated that the plan was for the Fuel Farm Partial Design to happen within both fiscal years and Fuel Farm Construction happening in FY19. Chad Gehrke stated we can use some State funds for this project and he had notated that on the spreadsheets. He also explained that the Security Gate at the TDK Hangar and Taxiway F already has a state grant in place for this project. We have one bidder for the excavation for this Sewer Line which will take care of TDK and future hangars which is about $71,000 which will be paid for through City funds at this time. ATMOS is working on a Gas Line and 3 Phase Line. George Huddleston Jr. stated he would have liked to design the future T Hangar Planning before lines are being installed so that we can avoid them interfering with future buildings on the North End. FY19 has funds for T Hangar electrical renovations in the older T-hangar buildings. T-hangar renovation design includes painting them and possibly an improvement to the roof. Steve Waldron stated that he is concerned that just the painting of the old hangars will use up almost all of the $40K budget entirely that has been set aside for the improvements of the older T-hangars. George Huddleston stated that TDK can use the force main until we get this other sewer line in place with a comprehensive plan. George Huddleston Jr., expressed about making a motion and Steve Waldron asked to table that discussion until we discuss this further. Chad expressed his concern that the fire suppression system requires a suitable sewer system to remove the tremendous amount of water that will be released during a fire event. Steve Waldron asked if we wanted to take this as 2 separate pieces. Chad clarified that thee budget is based on the revenues and expenditures. He stated that he would prefer the Airport Commission approve these 2 items as discussed. He stated that this will is give him a basis to form the budget before he goes before the City Manager and City Council. 6. CONSIDER APPROVAL OF PROPOSED FY19 AIRPORT BUDGET: Gail Zlotky moved to approve the Airport Budget as recommended. Clay Cook seconded the motion, and all voted in favor George Huddleston Jr. stated before we approve this motion, we need to discuss the $70, 600 for Assistant Manager position which hasn’t been approved yet. Chad stated he was part of a discussion with all the city department heads and Jim Crumley regarding pay/comp/classification and the process that the City will be going through for reviewing existing and future City positions. Chad Gehrke stated at this point he cannot speak accurately on how the airport personal and any other employees in the City will be classified, and salary expectations will be. Steve clarified how this will be decided within the City and the Airport Commission as well. George Huddleston Jr. reiterated his concern regarding ensuring that the position is at a good pay rate and is funded and can be put in place this fiscal year. 7. CONSIDER APPROVAL OF THE PROCESS TO REVIEW T-HANGAR CUSTOMERS REQUESTING ADDITIONAL TIME IN HANGARS TO COMPLETE ANNUAL AIRCRAFT INSPECTIONS: Chad Gehrke explained that we have revised our T-hangar Waiting List Procedures. He stated that the Airport had 70 people on our prior list and now we have 15 people due to the application and waiting list fee that is required. He stated that this list is much more manageable to be able to make some decisions about future hangars. Chad explained that once potential customers know that we are in the process of building new hangars we will add customers to this list. Some people stated they weren’t going to pay a $250 deposit until they knew we are in the process of building additional hangars at MBT. New Lease: Prior Lease Agreements gave tenants 120 days to get their aircraft in an airworthy condition. He stated that now the new lease gives them 180 days to complete their annual/repairs. We have 4 customers that need additional time to complete this process. Chad had spoken with each customer and each one has expressed that their goal is to have the aircraft up and airworthy and they are actively working on the aircraft. To assist with this process to have a customer request the Airport Commission for additional time Chad Gehrke created a form that each tenant will complete, and this will be reviewed by the Airport Commission at the next meeting to make a decision regarding their future in their hangar determining if the Airport Commission will grant additional time. Does the board want the tenant’s names redacted so they can make their decision without knowing who each tenant is or does that matter? Steve Waldron asked for comments on this matter, Gail Zlotky likes the idea and thinks names should be redacted from the form. George Huddleston Jr. asked if we could move them into the Q Hut instead of keeping them in their hangar. Chad Gehrke stated that MJAS rents out all of the square footage of the Q Hut. Steve Waldron would like Chad Gehrke to state the specifics to the 4 customers and the issues: Mr. Gehrke reviewed the status of the four customers. One tenant has a parts issue and in getting parts for the aircraft, 2 started a project and it’s a lot more then they anticipated and 1 has a job change and sickness in family. George Huddleston Jr. asked when did the 180 days initially started. Chad clarified that it was September 1, 2017 – March 1, 2018. The Airport Commission discussed that there is no place to displace these tenants while they are working on their aircraft. George Huddleston Jr. suggested that if they are not in compliance then their rents doubles until the aircraft becomes airworthy. The customer is aware they could lose their hangar if they are not in compliance. Steve Waldron asked the public for their prospective, if they were in this situation how they would feel about this situation. Mark Baker stated the airport has a limited amount of space. He said he thought that if they have not flown their aircraft in the last 10 years they are not going to fly it in the next 10 years. He stated that the owner of an unworthy aircraft need to move their aircraft into a mini storage warehouse and allow a tenant in that will be flying their aircraft at MBT. Michel Deweese stated why not allow those that have been flying in the last 2 years a little more time to get their aircraft airworthy. Mark Baker stated he liked the idea of doubling the rent until the aircraft is airworthy. Tim Quigley also commented it would most likely be less expensive to the tenant to pay double rent versus finding a storage unit to house their aircraft/parts and transporting it to that location, so he agrees with this idea. Clay Cook stated that this form needs a little bit more information included on this form before it’s submitted to the Airport Commission. Mark Baker asked if the Airport Manager would have the right to give notice to tenants that have not met their given timeline to have an airworthy aircraft. Chad Gehrke stated yes, he would have the right to give notice. Mr. Gehrke stated is that all the Airport Commission requires is a copy of the annual inspection from each aircraft owner. George Huddleston Jr. also stated that these tenants should provide invoice receipts and pictures of their progress. The Airport Commission discussed and then asked Mr. Gehrke to have these forms returned within a week so the Airport Commission will meet at the end of April to make decisions on these 4 tenants. George asked to recess this meeting so that no motion is required at this time. Continuation 4/30/2018 Chad Gehrke went over of the FAA Guidelines for T-hangar usage and provided a copy to the board members. There was a communication from AOPA and EAA regarding these issues of hangar usage of non-aviation items. Chad Gehrke went over the standards of aeronautical usage from this report and how this applies to our Lease Agreement. Mr. Gehrke reviewed some concerns expressed by tenants that the Airport Commission need to clarify such as the use of the term Aircraft Airworthy Only in the terms of our lease. He stated that our current lease provides tenants 180 days to have their aircraft airworthy and we need to add additional 150-day extension to work on their aircraft, but this will come with checks and balances. The customer will be required to provide pertinent information to their project and we will have the right to give them notice if they are not meeting the agreed upon bench marks and deadlines. Mr. Gehrke stated that a homebuilt aircraft will fall under these same guidelines. An owner of a homebuilt aircraft that is wanting to build the aircraft and bring it to the airport and put it in a hangar will have to comply with this policy. Mr. Gehrke stated that it is possible now that the FAA recognizes building an aircraft as an aeronautical activity. The Airport and the aircraft owner have to agree on a reasonable schedule to complete that project to become Airworthy and be in compliance with our Lease Agreement. Annuals are being tracked by Airport Staff in a spreadsheet which allows the Airport to track active aircraft versus non-airworthy aircraft. Clay Cook stated we need to decide whether or not we are going to allow a hangar to be used for those tenants to build a kit plane as that could take up to several years to complete. The Airport Commission discussed that they will be the deciding factor on how much time to allow a customer to be allowed to be in a hangar and completing a project. They discussed that aircraft kits are aeronautical use per the FAA standards, but the Airport Commission would have the tenant have conditions per the lease. Steve Waldron stated that Chad Gehrke and a Commission Member would be in charge of deciding whether or not we allow them to remain in the hangar or even being on the waiting list. If there becomes a deadlock between the Commission member and Airport Manager, then it goes before the Airport Commission. David Ives clarified in the appeal paragraph that goes over it and can be expanded if this issue arises. Appeal process is with the Airport Manager and Airport Commission Member Designee. If tenant disagrees with that decision, then the tenant would file a complaint with the court of law. Butch Jones moved to approve the Amend Current Lease, Item #11 as Chad recommended. Clay Cook seconded the motion, and all voted in favor and Gail Zlotky abstained from the vote. Nominations for an Airport Commission Member to be the designee, George Huddleston Jr. nominated Clay Cook. George Huddleston Jr. moved to approve Clay Cook as the Airport Commission Representative. Cutch Jones second the motion, and all voted in favor Reviewed Documents provided by tenants regarding requests for extension to get their aircraft airworthy. Mr. Gehrke stated that there were only three customers now at this time as one elected to move their aircraft until they are able to concentrate on the status of their aircraft. 1) First Tenant, Mr. Swindler provided detailed information for the Airport Commission to review for his request for an extension. The aircraft was in an incident that impacted his landing gear and other parts of his aircraft. Mr. Swindler documented his difficult time locating parts since the aircraft is an antique. Mr. Swindler requested an additional 365 days to get the aircraft back into airworthy status as he explained it’s basically a restoration project and complete rebuild of the engine. Steve Waldron thanked Mr. Swindler for his dedication to the airport community etc. Steve Waldron asked Mr. Swindler if he thinks he will be able to wrap it up in the additional year to complete the project? Mr. Swindler stated he is asking for the year to provide him the timeframe to complete. Clay Cook states we need a 90 day follow up inspection and see where Mr. Swindler is at that point just in case he runs into any issues to cause a revaluation. Clay Cook moved to approve the extension request with progress reports from Mr. Swindler. Gail Zlotky second the motion, and all voted in favor. 2) Second Tenant, Mr. Clayton he did not complete the form, but has spoken to Chad in person with a report on the status of his aircraft and circumstances that he had to deal with before he could work on his aircraft. Mr. Gehrke stated that Mr. Clayton had serious health issues which have caused him to not be able to work on the aircraft. He had a mechanic that will be working on the aircraft and have his aircraft airworthy by the end of June. Mr. Gehrke stated that Mr. Clayton was requesting 60 days to complete this project. Mr. Gehrke stated that Mr. Clayton understands that if a tenant does not meet these requirements he is aware that he will be given notice to vacate. George Huddleston Jr. moved to approve the extension request till the end of June. Gail Zlotky second the motion, and all voted in favor.  3) Third Tenant, Robert Davis who he purchased an aircraft as a project that came with a great deal of additional damage he was unaware of until he started working on it. He was hoping to have his aircraft completed within the 180 days, but he has had a change of jobs which has affected his completion. Mr. Davis has requested 120 days to complete his aircraft airworthy. Gail Zlotky moved to approve the extension request with progress reports from Clay Cook seconded the motion, and all voted in favor. 8. CONSIDER ANY OTHER BUSINESS TO COME BEFORE THE AIRPORT COMMISSION: MTSU 727: Steve Waldron asked if there is a plan to on removing the aircraft from the field. Nick Lenczycki stated that they are looking into another aircraft brought to the field after the removal of the 727. Continuation 4/30/2018 Gail Zlotky asked Chad Gehrke to talk about our City Website, updating the public regarding the changes to the City Website. Chad Gehrke stated that he was in the process of getting training so that he can download Agenda and City Minutes. He stated that he will be adding agendas and minutes to our City Website from this past year. Chad Gehrke stated that he will be updating this along with calendar information being posted about various events happening here at the airport. Chad stated that tenants keeping us updated with current email addresses is also an important as that is another way we are communicating with our customers. Airport Cook Out Date set for June 9th with our tenants. Steve Waldron offered maybe giving a fuel discount during this event. George Huddleston Jr. stated that he was concerned that there still did not appear to be any plans to go out for bid for the Terminal Project. Chad Gehrke stated that a very important meeting with Michael Baker and Sevalus on May 11, 2018 has been scheduled. The purpose of the meeting is to go over the two construction estimates that we have received for the terminal project. George Huddleston Jr. stated we may need to look at pushing the building of hangars on the North End as well as the sewer line on the North End. Steve Waldron stated that any of the proposed hangar plan layouts on the north end of the airport shows that there is no sewer line that will affect any future hangar locations. George Huddleston believes there is a line that will be some future hangar that will be affected. Chad Gehrke provided a drawing that shows where the sewer line will be located along the same path as an extended Taxiway F. Steve Waldron stated we need to have this as a gravity fed line that can extend to the future box hangars located on the very east side of the ramp. Mr. Waldron stated that ATKINS stated that this does not affect any of our projected projects. Any manhole requires an 8” line. Mr. Gehrke stated that the current proposed cost is that this will cost $71K and will be paid from CIP Funds. Steve Waldron stated we need to have a work session within 90 days that will allow the board to decide regarding this line. Steve Waldron stated his thoughts if the City would allow the Airport to take a 20 year loan out to build additional hangars and not receive Federal Funds. George Huddleston Jr. stated we need to focus on building of T Hangars versus the Terminal Building at this present time. There needs to be a planning session to go over the future of building Hangars. Mark Baker asked if anyone has anyone looked into a Carousal Hangar. Steve Waldron stated we will be looking into that. 9. CONSIDER NEXT DATE FOR AIRPORT COMMISSION MEETING: Next Airport Commission meeting May 15, 2018 at 4:30pm. 10. ADJOURNMENT: 4/30/2018: Motion to Adjourn, Gail Zlotky.