MINUTES AT THE REGULAR MEETING OF THE COLUMBUS AIRPORT
COMMISSION HELD AT THE COLUMBUS AIRPORT
MONDAY, MAY 28, 2015 AT 9:30 AM
The following Commission members were present for the entire meeting.
NAME EXPIRES
Mr. Winfield G. Flanagan,
Chairman December
31, 2018 Mr. Kerry W. Hand, Vice
Chairman December
31, 2017
Mr. Thomas G. O. Forsberg,
Treasurer December 31, 2015
Staff members present:
Richard C. Howell, A.A.E., Airport Director
W. Donald Morgan, Jr., Legal Counsel
Mary Scarbrough, Secretary
Jennifer Wright, Restaurant Manager
Bruce Anderson, Maintenance Manager
Sonya Hollis, Marketing Director
Lorrie Brewer, Chief Accountant
Ed Gibson, Public Safety
Shaundra Goodwin, Public Safety
Melissa Chadwick, Chief of Public Safety
Others present:
Richard DesPortes, R.D. Aircraft; Carter Woolfolk, Yates, Woolfolk & Turner
Insurance; Launa DesPortes, CSG Aviation/R.D. Aircraft; Don Cook.
BUSINESS OF THE MEETING
The meeting was called to order by Mr. Winfield Flanagan at 9:30 AM.
PRESENTATION ? DON COOK
Mr. Flanagan presented Mr. Don Cook an award thanking him for his many years
of dedicated service on the Columbus Airport Commission Board from 2001-2014.
Mr. Cook in extending his appreciation thanked the Columbus Airport Commission.
APPROVAL OF MINUTES
Motion by Mr. Kerry Hand to approve the minutes as amended for the April 27,
2015 as presented; seconded by Mr. Thomas Forsberg and unanimously approved by
the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL OF THE AMENDMENT FOR RD AIRCRAFT, INC. D/B/A SPEEDBIRD AERO
LEASE
Mr. Howell stated R.D. Aircraft, Inc., D/B/A Speedbird Aero (Lessee) operated
by Richard DesPortes has submitted a request to the Commission to amendment
certain terms of its lease dated January 27, 2010. Lessee has presented
evidence that improvements required under the Agreement have been made totaling
$68,500. Lessee has also presented information that over the last three years
for a variety of reasons gross sales have fallen nearly 40%. Lessee cites the
decline in overall business activity impacts its ability to perform debt
service on the loan for the repairs and renovations the firm made to the
Premises in accordance with the lease agreement. Lessee requests one
additional five year extension to its agreement and a reduction in rent
payments during the existing term to $1,400 per month. When Lessee enters the
second five year extension, rent will increase to $1,600 per month, periodic
rent adjustments will begin again per the Consumer Price Index (CPI) and
continue throughout the second extension. The Lessee is in compliance with all
other lease terms and provisions. Mr. Howell asked Mr. DesPortes if he would
like to speak.
Mr. Richard DesPortes appreciates the support. He is hoping to increase his
business along with the Columbus Airport?s business. He continues to receive
the airline call outs.
Staff recommends adoption.
Motion by Mr. Kerry Hand to approve the amendment for R. D. Aircraft, Inc.
d/b/a
Speedbird Aero Lease was made: seconded by Mr. Thomas Forsberg and unanimously
approved by the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL FOR THE PASSENGER FACILITY CHARGES APPLICATION #6/PASSENGER
FACILITY CHARGES PROJECT LIST FOR THE COLUMBUS AIRPORT
Mr. Howell stated the Commission has been collecting Passenger Facility Charges
(PFC) since the mid 1990?s. An approved PFC is collected by using airlines on
behalf of the airport sponsor. In the case of the Columbus Airport, most PFC?s
have been used as the five or ten percent local share to our Federal Airport
Improvement Program grants. The Commission?s collection authority ran out
March 1, 2015. PFC?s must be applied to an approved project the new
application will request authority to collect and use funds for the project on
the list provided. Total collections will be $1,322.733.00. We have a
substantial amount of PFC collections that we were authorized to collect from
Application #5. We did collect the money, but for a variety of reasons it was
not spent. As a part of the application process these PFC funds will be
reallocated for new projects. FAA approval should be made somewhere in the
December/January time frame.
Staff recommends approval of the PFC Application #6/PFC project list for the
Columbus Airport.
Motion by Mr. Thomas Forsberg to approve the PFC Application #6/ Georgia
Department of Transportation Funding Contract was made: seconded by Mr. Kerry
Hand and unanimously approved by the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL FOR THE TERMINAL BUILDING ENERGY AUDIT WORK ORDER WITH
REYNOLDS, SMITH, AND HILL (RS&H)
Mr. Howell reported that discussions with our consultant have resulted in a
proposal that performance an energy audit of the commercial passenger building
could result in substantial savings to the Commission.
Our Aviation consultant Reynolds, Smith, And Hills (RS&H) has submitted a draft
work order for services in support of this project.
Services to be provided are:
1. Analyze energy use.
2. Perform an assessment building energy systems.
3. Establish performance targets.
4. Identify optimization opportunities.
5. Conduct walk-through survey.
6. Identify low cost/no cost energy conservation methods.
7. Identify potential capital improvements.
For all services RS&H has proposed a lump sum fee of $ 33,735. Initial
estimates of potential savings run into six figures annually. Funding would
initially come from the Airport Enterprise fund to be reimbursed later by a
Federal grant and Passenger Facility Charge for the local share.
Staff recommends approval of the Terminal Building Energy Audit Work Order.
Motion by Mr. Thomas Forsberg to approve the Terminal Building Energy Audit
Work Order was made: seconded by Mr. Kerry Hand and unanimously approved by
the Commission.
Ayes: 3 / No: 0
DIRECTORS REPORT
Mr. Howell introduced Ms. Lorrie Brewer, to provide a financial update.
FINANCE
Ms. Lorrie Brewer provided the following information:
The Airport sustained an overall loss of $(32,521) with an adjusted net profit
(without depreciation, amortization, grant or PFC revenues) of $112,899 in
April. Year over year it amounts to an increase in profit of close to 67% in
comparison to April of last year in which we had an adjusted net profit of
$67,582 (see Summary of Airport Revenues & Expenses).
Propellers Restaurant sales were down by approximately $1K compared to this
month last year; however, Cost of Goods Sold (COGS) and other expenses were
held down considerably causing the impact to be far less significant than last
year?s.
Flightways sales decreased a little over $84K compared to April of last year.
Their COGS and expenses were held down as well resulting in an increase in net
income over last year. Fuel sales and flowage fees were down approximately
$79K, rental fees were up by a little over $6K in the same time period.
Minimum rents were used for the car rental revenues for April as they were not
available at the time of closing.
Compared to this month last year, labor and benefits expenses were down
approximately $11K; repairs and maintenance expenses were down a little under
$2K; utilities and other services expenses showed little change; insurance
costs were down around $3K and administrative expenses were down by almost $3K
over last year.
Update on Airport Improvement Project 39:
AIP 39 ? Construct Airport Perimeter Fencing & Wildlife Hazard Management:
Balance: $1,226,100.00.
Cash flow was positive for the month (see the Cash Flow Summary).
PROPELLERS
Ms. Jennifer Wright provided the following update on Propellers:
? Jennifer Wright and staff has introduced the summer menu. It was based on
oral comments from passengers and tenants over the last three months. They are
offering healthier choices and cut purchase costs to attract more customers
with affordable prices.
? Average sale per enplanement passenger is $2.29 this month. It increased by
$.03 from last month. Jennifer Wright did not develop this particular
reporting criteria until October 2014 so year over year comparisons are not
available.
? Total expenses were down 25 percent versus 2014. This year?s total expenses
was $6,797. 2014 the expenses were $9,140.
? Gross Sales this month was $8,340 versus 2014 $9,656. Due to level of
enplanement decreasing slightly, Propeller?s sales decreased by 15% in
comparison with last year.
? Cost of goods sold were decreased by 42%. April?s COGS are $2,931in contrast
to 2014 $5,124.
? Net Loss was decreased by 69% for the month of April. This month was $1386
and last year it was $4,608.
? Jennifer Wright will continue to maintain projected net loss decreased by
$35,000.
Mr. Howell stated the challenge for Propellers and the Columbus Airport will be
the decrease in Delta flights beginning in June.
Mr. Howell said Ms. Wright is looking at vending options for the Columbus
Airport.
FLIGHTWAYS COLUMBUS
Mr. Howell provided the following information due to Ms. Renfroe?s absence from
the meeting due to a tour at Flightways Columbus at this time.
? Fuel gallons pumped year over year comparison:
Fuel item Gallons pumped April 2015 Gallons pumped
April 2014 Change
Auto 204 203 .50%
AVGAS 6,669 8,343 -25%
Diesel 148 184 -24%
Jet A (Express Jet) 13,279 20,360 -53%
Jet A (Retail) 17,274 14,093 23%
Jet A (Contract) 11,908 19,215 -61%
Jet A (Gov?t/Mil) 1,228 807 52%
Jet A (Justice Flights) 6,722 12,626 -87%
? Justice Flights are still going strong for Flightways Columbus. The number
of aircraft handled
In the month of April of 2015 (14) compared to April 2014 (13).
? Flightways with the ARFF station had 171 kids from 4 schools in the month of
April for the Airport Field trips. The ages ranged from 4 to 7 years of age.
Mr. Howell stated he will be in Seattle, Washington next week at the Jump Start
Conference.
Mr. Howell said a construction of the fence will begin in the middle of June
2015. He has done all that is required at this time concerning the contract.
OTHER MATTERS
At the end of the May 28, 2015 The Columbus Airport Commission Meeting
adjourned at 9:49 AM for a closed session for a business discussion.
There being no further business the meeting adjourned at 10:24 A.M.
APPROVED:
____________________________ _____________________________
Mary Scarbrough, Secretary
Winfield G. Flanagan, Chairman
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