Airport Commission

AIRPORT COMMISSION MEETING Monday, March 11, 2019 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 Clay Cook John Polk Butch Jones Gail Zlotky Bill Shacklett, City Council Member Darren Gore, Assistant City Manager- Ex-Officio GUESTS: Mark Foulks, Chief of Murfreesboro Fire and Rescue Department Mark Baker, Based Customer STAFF: David Ives, Assistant City Attorney Chad Gehrke, Airport Manager Jennifer Hodgdon, Airport Admin Assistant Prayer and Pledge of Allegiance lead by Commission Member Steve Waldron. 1. Call the meeting to order: Steve Waldron called meeting to order. Fire Chief Mark Foulks presented George Huddleston with a plaque in appreciation of his actions in support of the Murfreesboro Fire and Rescue Department flying personnel and equipment to Gatlinburg and then again volunteering his aircraft after a hurricane hit North and South Carolina. 2. Consider approval of the November and December 2018 Airport Commission Meeting minutes: Clay Cook moved to approve both the November and December Airport Commission meeting minutes. John Polk seconded the motion. All members voted in favor. 3. Review proposed FY20 Airport Budget: Chad Gehrke introduced the proposed FY20 Airport Budget. Mr. Gehrke reviewed the various portions of the proposed budget: Fixed Assets, Expenditures, Payroll, and Revenues. Mr. Gehrke started with a proposed five-year Capital Improvement Plan.  Total Cost Operating Department Project Other Funding Previous CIP 2020 2021 2022 2023 2024 Estimate Costs Airport Airport Taxiway Echo 6,500,000 - 2,900,000 *** - - 3,600,000 - - - Airport Airport South Apron Development 4,000,000 - 2,000,000 * 2,000,000 - - - - - Airport Hangar 3 Renovations 400,000 - - - - 400,000 - - - Airport Fuel Truck Purchase 150,000 5,000 150,000 - - - - - - Airport Pavement Maintenance 1,000,000 - 900,000 ** - - 100,000 - - Airport Fuel Farm Relocation and Upgrade 900,000 4,000 - - - - - 900,000 - Airport Apron Expansion 2,000,000 - - - - - - - 2,000,000 14,950,000 9,000 5,950,000 2,000,000 - 4,000,000 100,000 900,000 2,000,000 * TN Airport Economic Development Grant ** TN Aeronautics Grant ? Airport Fund Airport Budget Fixed Assets Account Description FY19 Current Estimate FY 20 Buildings Exp 420,000 - 225,000 2,229,500 Airfields 36,000 20,886 84,000 1,670,000 Other Improvements - 2,303 2,303 Machinery and Equipment 652,700 895 30,900 2,000 Office Machinery and Equipment 2,000 - - 2,000 Computer Equipment 2,000 1,000 1,500 Furniture & Fixtures - - - - 1,112,700 24,084 343,203 3,905,000 FY 19 BUDGET Federal State Local Other Total Type Start End Terminal (Grant) $0 $350,000 $0 $0 $350,000 Building/CIP ContinuedDecember T-hangar Electrical Revovation $0 $0 $20,000 $0 $20,000 Building April June T-hangar Renovation design $0 $0 $40,000 $0 $40,000 Building SeptemberJanuary Misc. Utility Improvement $0 $0 $10,000 $0 $10,000 Building July February Approach Maintenance Cont. (Will Request) $0 $34,200 $1,800 $0 $36,000 Airfield August June South Ramp Deve. Planning * $0 $0 $0 $0 $0 Airfield/CIP February Continue Fuel Farm Design (Grant) $48,800 $2,700 $0 $0 $51,500 Equipment ContinuedNovember Fuel Farm Construction (Will Request) $567,000 $31,500 $0 $0 $598,500 Equipment/CIP NovemberJune Office Machinery and Equipment 2,000 $2,000 Computer Equipment 2,000 $2,000 $615,800 $418,400 $91,800 $0 $1,110,000 * Requesting Grant through new Airport Economic Development Fund ** Revenues from Sale of property goes toward the cost of construction of the new Terminal FY 19 ESTIMATED Federal State Local Other Total Type Start End Terminal (Grant) $0 $175,000 $0 $0 $175,000 Building/CIP ContinuedDecember T-hangar Electrical Revovation $0 $0 $20,000 $0 $20,000 Building April June T-hangar Painting A,B,C $0 $0 $20,000 $0 $20,000 Building SeptemberJanuary Misc. Utility Improvement $0 $0 $10,000 $0 $10,000 Building July February Approach Maintenance Cont. (Will Request) $0 $19,950 $1,050 $0 $21,000 Airfield August June South Ramp Deve. Planning * $34,200 $1,900 $1,900 $0 $38,000 Airfield/CIP February Continue Fuel Farm Design (Grant) $0 $0 $0 $0 $0 Equipment ContinuedNovember Fuel Farm Construction (Will Request) $0 $0 $0 $0 $0 Equipment/CIP NovemberJune North Apron Development Design $22,500 $1,250 $1,250 $0 $25,000 Airfield April Continued Electric Security Gate $27,000 $1,500 $1,500 $0 $30,000 Equipment May June Office Machinery and Equipment 2,000 $0 $2,000 Computer Equipment 2,000 $0 $2,000 $83,700 $199,600 $59,700 $0 $343,000 FY 20 PROPOSED BUDGET Federal State Local Other Total Type Start End Terminal (Grant) $0 $175,000 $0 $0 $175,000 Building/CIP Continued T-hangar Electrical Revovation $0 $0 $20,000 $0 $20,000 Building April June T-hangar Painting D, E $0 $0 $24,500 $0 $24,500 Building August October Misc. Utility Improvement $0 $0 $10,000 $0 $10,000 Building July February South Apron Hangar Project $0 $2,000,000 $0 $0 $2,000,000 Building January Continue Approach Maintenance Cont. (Will Request) $0 $36,000 $4,000 $0 $40,000 Airfield August June North Apron Deve. Design Engineering $117,000 $6,500 $6,500 $0 $130,000 Airfield/CIP July Continue Terminal, South Apron Hangar, North Apron Deve $0Prjts $0 $1,500,000 $0 $1,500,000 Airfield/Land Sale and Airport Fund Office Machinery and Equipment 2,000 $2,000 Computer Equipment 5,000 $5,000 $117,000 $2,217,500 $1,572,000 $0 $3,906,500 Airport Budget Expenditures Description FY 19 Current Estimate FY20 Expenditure Summary Contractual Services 250 250 500 500 Communication & Transp - - - - Printing Services 300 2,000 3,000 2,000 Memberships & Dues 500 250 250 500 Advertising 800 260 400 500 Profession. Svc - Subscription - - - - Electric 29,000 19,000 20,000 25,000 Water 5,500 3,300 5,700 5,700 Gas 4,250 2,200 4,250 4,300 Telephone & Other Comm. 2,900 1,800 1,600 2,000 Cell Phone 700 714 1,100 1,500 Internet 750 563 965 1,000 Cable Service 750 53 120 150 Solid Waste Fees - - 864 1,800 Other Utility Services - - - - Professional Services 10,000 4,400 9,000 10,000 Legal Services & Expenses - - - - Repair & Maint. Services - - - - Fleet - Repair & Maintenance - 281 500 600 Repair & Maint Other Mach & Eq 24,000 5,100 12,000 15,000 Repair & Maint Furn. & Machine 200 700 1,000 1,200 Repair & Maint Grounds & Imp 46,200 13,800 29,400 30,000 Repair & Maint. Buildings 55,000 15,301 25,000 25,000 Repair & Maint - Other - - - - Training & Travel 5,000 230 2,500 6,000 Employee - - - - Car Allowance & Mileage 700 285 500 700 Vehicle Lease Rental - - - - Other Employee & Travel - 1,308 1,310 2,000 Disposal Fees 500 1,136 1,900 700 Supplies 400 144 150 400 Office Supplies and Materials 3,000 3,300 5,500 5,500 Software Subscriptions 3,500 2,500 2,500 7,500 Postage & Shipping 800 200 300 500 Agriculture and Hort. Supplies - - - - Food 1,300 1,500 2,500 2,000 Household & Janitor Supplies 3,000 1,800 3,000 3,000 Public Safety Supplies 1,000 500 500 1,000 Clothing and Uniforms 1,250 1,300 1,300 1,300 Repair & Maint. Supplies 300 - - 300 Gas, Oil, Diesel, Grease, Etc. 2,200 1,102 2,100 2,400 Fuel Rebates 45,000 34,160 59,000 60,000 Other Repair & Maint Supplies 500 - - 500 Safety Supplies - 2,450 2,600 600 Supplies For Resale 850,000 640,000 1,100,000 1,550,000 Other Supplies & Materials 50 635 635 500 Liability Insurance - - - - General Liability Insurance 15,276 5,600 15,276 15,276 Other Liability Insurance 4,294 4,294 4,294 4,300 Property Insurance - - - - Building Insurance - - - - Vehicle Insurance - - - - Building and Office Rental - - - - Bank Service Charges 11,000 6,800 11,800 13,000 Bad Debt Expense - - - - Transfer To General Fund 4,750 4,750 4,750 4,750 Transfer to Debt Service Fund 150,000 150,000 150,000 150,000 Miscellaneous Expense 200 - - 200 Cash Over and Short - (26) (26) - Sales Tax 23,000 17,447 30,000 33,000 Meals During Meetings 2,000 670 1,400 2,000 1,310,120 952,057 1,519,438 1,994,176 Airport Budget Payroll Account Description FY 19 Current Estimate FY20 500001 Payroll Non-Cash Items Only - - - - 511100 Salary - Full-Time - Regular 161,334 77,650 112,000 165,640 511200 Temp/Seasonal Salary - - - - 511300 Overtime Salary 2,000 - - 2,000 511400 Longevity 1,440 1,440 1,440 1,470 511500 Holiday Pay - 215 215 300 511900 Other Salary - - - - 511999 Special Payments - - - - 512000 Wages - - - - 512100 Part-Time Regular Emp Wages 81,300 47,713 90,300 123,000 512200 Temp/Seasonal Part-Time Wages - - - - 512300 Overtime Wages 2,000 1,647 2,800 3,000 512900 Other Wages - - - - 513000 Employee Benefit - - - - 513100 Retirement-Vacation & Sick Pay - - - - 513200 Bonus Pay - - - - 513201 Annual Holiday Gift 250 275 275 280 513300 Vacation Pay - - - - 514000 Employer Contributions - - - - 514100 Social Security & Medicare Tax 18,257 9,474 18,300 26,000 514101 Medicare Tax - - - - 514200 Hospital And Health Insurance 45,955 21,202 29,000 49,000 514203 Dental Insurance - Delta 1,332 1,024 1,385 1,600 514204 Dental Insurance - Assurant - - - - 514300 Defined Benefit Plan 10,607 7,551 10,500 10,700 514301 Defined Contribution Plan 4,245 577 800 4,300 514400 Retirement - Actuarial Deficit - - - - 514500 LTD & Life Insurance 682 589 650 900 514600 Worker's Compensation 5,259 - 5,259 7,500 514700 Unemployment Insurance - - - - 514800 Employee Testing - - - - 514900 Other Employer Contributions - - - - 516900 Other Per Diem - - - - 519000 Other Personal Services - - - - 334,661 169,357 272,924 395,690 PLAN A Airport Manager 84,825.00 Assistant Airport Manager 56,608.00 Administrative Assistant 27,495.00 168,928.00 Number of Number of Number of Hours per Weeks for Classification FY20 Employees Week the Year Hourly Rate Total Laborers 8 28 32 9.60 68,812.80 Adam Ewing 1 28 52 16.32 23,761.92 Peter Acevedo 1 22 52 14.11 16,141.84 Brandon Snell 1 28 52 14.11 20,544.16 Aaron Cope 1 5 52 14.11 3,668.60 Dale Lanier 1 25 52 14.11 18,343.00 Nathanial Highfill 1 15 8 14.11 1,693.20 New Employee Replace Jamison 1 28 52 14.11 20,544.16 New Employee 2 1 25 52 14.11 18,343.00 Total Part Time 176 123,039.88 291,967.88 Airport Budget Revenue Account Description FY 19 Current Estimate FY 20 Revenue Summary - Federal Grants 615,800 18,798 83,700 117,000 State Grants 418,400 1,043 199,700 2,217,500 Other State Grants 14,300 4,495 14,300 14,300 Interest Earnings 1,000 - 4,000 4,000 Insurance Recoveries - - - - Transfer In From General Fund 123,000 - - 83,716 Miscellaneous Income 1,050,000 - - 1,200,000 Vending Machine Sales 300 200 300 100 Aviation Revenues - - - - Aviation Call Out Fees - 20 40 50 Landing Fees - - - - Aviation Gasoline 1,020,000 781,372 1,340,000 1,800,000 Fuel Oil Royalties - - - - Lease On Ground Areas - - - - Hangar Rentals 456,920 350,420 460,000 472,300 MTSU Lease 50,168 50,168 50,168 53,900 Plant And Facility Rentals 26,780 15,164 26,000 27,000 Building Rentals - - - - Terminal Bldg Areas Revenues 5,400 - 6,300 5,000 Revenue Clearing - - - 300,000 3,782,068 1,221,680 2,184,508 6,294,866 Budget Revenue 2019-2020 July 2019 January 2018-2019 CPI-U = % Recommended proposed 2019 2017-2018 Adjustments $/ annual monthly $ annual T-Hangar Rent Jul-17 %^ Jul-18 sq ft UNITS/m onths REVENUE increase rent sq ft rent A, B, C ($193.00) 3% ($199.00) $0.25 14 ($33,432.00) 3% 205 $0.26 $34,440 D, E ($248.00) 3% ($255.00) $0.27 13 ($39,780.00) 3% 263 $0.28 $41,028 F, H ($266.00) 3% ($274.00) $0.24 20 ($65,760.00) 5% 288 $0.25 $69,120 G ($413.00) 3% ($425.00) $0.28 10 ($51,000.00) 5% 446 $0.29 $53,520 I and L West Side ($312.00) 3% ($321.00) $0.28 11 ($42,372.00) 5% 337 $0.30 $44,484 I, K,L ($321.00) 3% ($331.00) $0.29 21 ($83,412.00) 5% 348 $0.31 $87,696 J, ($428.00) 3% ($441.00) $0.29 11 ($58,212.00) 5% 463 $0.30 $61,116 End Units Sm all ($50.00) 3% ($52.00) 3 ($1,872.00) 6% 55 $1,980 End Units Large ($60.00) 3% ($62.00) 4 ($2,976.00) 6% 66 $3,168 Turnover/Promotion loss $283.00 52 $14,716.00 Average 100% Units Occupied 100 Empty Units vs. Total Number of Available Units 1/101 ($364,100.00) $396,552 MTSU LEASES Jul-17 %^ Jul-18 UNITS/m onths REVENUE Miller Lanier ($5,352.45) 3% ($5,513.02) 1 ($5,513.02) Hangar #2 ($21,065.52) 3% ($21,697.48) $0.30 1 ($21,697.48) $0.30 Jean A. Jack $2,167.24 3% $2,167.21 1 $2,167.21 727 Ram p ($2,193.65) 3% ($2,259.46) 1 ($2,259.46) Jean A. Jack w / Park ($3,667.41) 3% ($3,777.43) 1 ($3,777.43) Taxiw ay ($2,879.00) 3% ($2,965.37) 1 ($2,965.37) Box 3 ($15,643.11) 3% ($16,122.41) $0.33 1 ($16,122.41) $0.33 ($48,633.90) ($50,167.96) 53,894.94 Term inal Jul-17 %^ Jul-18 UNITS/m onths REVENUE MJAS 200 ($276.00) 3% 0 $0.00 300 ($276.00) 3% 0 $0.00 100A/B ($488.00) 3% 0 $0.00 Tem p Office ($450.00) 1 ($4,500.00) 4,000.00 ($4,500.00) Com m ercial Hangars Jul-17 %^ Jul-18 UNITS/m onths REVENUE Box 1, 2, 4 ($1,304.00) 3% ($1,343.00) $0.33 3 ($48,348.00) 4 1396 $0.35 50,256.00 Hangar #1 ( Q uo nset Hut ) ($170.00) 3% ($175.00) 4 ($8,400.00) 180 8,640.00 Tie Dow n ($60.00) 3% ($62.00) 1 ($744.00) 6 65 780.00 Storage Area ($269.00) 3% ($277.00) 1 ($3,324.00) 3 285 3,420.00 $0.00 Hangar #3 ($2,513.00) 2% ($2,563.00) $0.21 1 ($30,756.00) 2 2614 $0.21 31,368.00 w / w estside ram p Air Methods ($530.00) 3% $0.00 12 $0.00 94,464.00 ($91,572.00) Tie-Dow ns Jul-17 %^ Jul-18 UNITS/m onths REVENUE Overnight/Monthly ($60.00) 3% ($62.00) 30 ($22,320.00) 6 65 23,400.00 ($22,320.00) Outstanding (4%) $14,600.00 (18,720.00) Total Rents and Leases ($518,059.96) Fuel Sales Fuel Expenses Annually Fuel Flowage Taxes:Sales & Excise $23,000.00 Avgas ($1,020,000.00) Sales Rebates $45,000.00 Jet A Credit Card Fees $11,000.00 Oil 100 LL Cost of Goods $850,000.00 Snacks (300.00) Jet A Cost of Goods $0.00 Tax Credit Construction Factor $0 ($1,020,300.00) Oil Cost of Goods Snack Cost of Goods $0.00 1,800,000.00 $929,000.00 (1,671,000.00) ($91,300.00) 129,000.00 Total Revenue ($609,359.96) 682,590.94 4. Consider approval of FY20 Airport Budget: The Airport Commission discussed various aspects of the various portions of the budget. The Airport Commission discussed the various capital improvement projects that would occur over the next five years. They discussed the proposed Assistant Airport Manager and various alternative staffing and timing of the possible hiring. The Airport Commission spent the majority of the time discussing the proposed rental rate adjustments. Mr. Gehrke stated that he had proposed an increase of 3% for the oldest set of hangars and 5% increases to all of the others. He stated that he proposed not offering the free month of hangar rent promotion. He stated that approximately 52 customers participated in the program last year which was a loss of around $15,000.00. The Airport Commission did discuss the fact that 52 customers did pay all of their hangar rent at the beginning of the year. The Airport Commission discussed what was “market rates” as it pertained to T-hangar rental rates. They discussed the hangar rental rates for Davidson County, surrounding counties, and then the more rural counties. It was pointed out that Lebanon Airport had similar sized hangars which were considerably lower rent, in the $250 range, than John C. Tune, Smyrna, and Murfreesboro. The Airport Commission discussed the fact that the Airport does not charge any additional fees for paying hangar rent with a credit card. The Airport Commission discussed whether or not the Airport should or should not charge an additional 3% to cover the credit card fees. The Airport Commission discussed many other aspects of the proposed budget. Various projects such as adjusting the schedule of the pavement maintenance project. They discussed the concern to use the NPE funds so that no funds are lost this year. They discussed with Darren Gore the budget process and if they meet in early April if adjustments could be made. Mr. Gore agreed that the budget process typically takes several weeks to review and approve so there would be time for adjustments. Butch Jones moved to approve the budget as approved with the Airport Commission continuing further study at an early April meeting. George Huddleston seconded the motion. All voted in favor. 5. Airport Manager’s update of TDK Hangar Project and installation of utilities into the Taxiway F Development Area: Mr. Gehrke reported that all utilities had been installed. A temporary sign at Dejarnette Lane had been installed with a permanent sign coming once the new sign at Memorial is designed. Mr. Gehrke reported that the TDK Hangar had received its temporary Certificate Of Occupancy. 6. Airport Manager’s update of the Terminal Project: Mr. Gehrke reported that the determining factor of when the City will be vacating the Terminal will be determined by when Comcast will install the new lines. It was reported that Blake Smith’s attorney was reviewing the contract for the Terminal but any questions should be resolved shortly. 7. Airport Manager’s update of various projects: Mr. Gehrke stated that he had covered all of the various information regarding other projects during the review of the budget. 8. Consider any other business to come before the Airport Commission: There was no other business before the Airport Commission. 9. Consider next date for Airport Commission meeting: The Airport Commission agreed to meet April 8, 2019 at 4:30 pm at the TDK Hangar if the Terminal is under construction. 10. Recess The Airport Commission recessed the meeting until Monday, April 8, 2019 at 4:40 pm.