MINUTES AT THE REGULAR MEETING OF THE COLUMBUS AIRPORT
COMMISSION HELD AT THE COLUMBUS AIRPORT
THURSDAY, AUGUST 26, 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. Carl Rhodes, Jr. December 31, 2019
Mr. Chris Badcock December 31, 2016
The following Commission members were absent:
Mr. Thomas G. O. Forsberg,
Treasurer December 31, 2015
Mr. Kerry W. Hand, Vice
Chairman December
31, 2017
Staff members present:
Richard C. Howell, A.A.E., Airport Director
W. Donald Morgan, Jr., Legal Counsel
Mary Scarbrough, Secretary
Melissa Chadwick, Chief of Public Safety
Jennifer Wright, Restaurant Manager
Sonya Hollis, Marketing Director
Lorrie Brewer, Chief Accountant
Ed Gibson, Public Safety
Charles Golden, Public Safety
Others present:
Brian Thompson, RS&H; Mark Hewlett, B & C Aviation; Richard DesPortes, R.D.
Aircraft/Speedbird Aero; Launa DesPortes, CSG Aviation/R.D. Aircraft; Mike
Scheller, Aflac; Richard Scogin, Performance Fertilization; Cham Watkins, John
Walton, III, Joel O. Wooten, Michael Greenblatt, Bill Buck
BUSINESS OF THE MEETING
The meeting was called to order by Mr. Winfield Flanagan at 9:30 AM. Mr.
Flanagan welcomed all attendees to the meeting.
APPROVAL OF MINUTES
Motion by Mr. Carl Rhodes, Jr., to approve the minutes as amended for the July
22, 2015 as presented; seconded by Mr. Chris Badcock and unanimously approved
by the Commission.
Ayes: 3 / No: 0
CONSIDER APPROVAL OF THE COMMAND SYSTEMS CONTRACT FOR THE COLUMBUS AIRPORT
Mr. Howell reported that Airport Management was approached by the Commission?s
long time vendor, Command Systems of Columbus, GA to enter into a services
contract for maintenance of our Airport-wide Access Control System, Gate
Control Systems, Closed Circuit TV System and Paging and Automatic Announcement
System. They propose a three year agreement at a cost of $19,079.00 per year.
For this type of expenditure we would require a formal competitive bid package
be issued for evaluation. Management is requesting the Commission waive this
requirement and enter into a contract for the services described above with
Command Systems. The Commission has had a relationship with Command Systems
for many years, but never entered into a formal contract. The Chief Accountant
reports in any given year the payments to Command Systems is approximately
$50,000.00 to $75,000.00 for routine, emergency and overall maintenance for the
systems described above essentially on an hourly basis. As Command Systems is
already very knowledgeable of the systems involved and the proposed agreement
substantially reduces the annual expenses in these areas, Airport Management
believes it is in the Commission?s best interest to waive the Purchasing RFP
requirement and enter into the agreement.
Staff recommends accepting the agreement and directing the Airport Director to
execute the contract on behalf of the Commission.
Motion by Mr. Chris Badcock to approve the Command Systems was made: seconded
by
Mr. Carl Rhodes, Jr. and unanimously approved by the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL FOR THE INSURANCE FOR FISCAL YEAR 2016 FOR THE COLUMBUS
AIRPORT
Mr. Howell stated the Columbus Airport Commission?s insurance had expired in
July 2015. He said, our insurance agent, Yates, Woolfolk and Turner (YWT) went
to open market to obtain new policies and no lapse in coverage occurred.
However YWT was not aware the Commission needed to adopt the coverage before
committing to the coverage, this action is intended to resolve that matter.
Property, auto, crime, excess liability and workers compensation. Later in the
year we will purchase insurance for the 2016 Air Show. The annual premium for
this coverage will be $104,905.00 and will be paid directly out of our
Enterprise Fund; the expenses have been budgeted. This amount saves us a total
of $4,576.00 as compared to last year. In discussions with the Commission in
work sessions, YWT has recommended additional coverage in areas the Commission
has not been using but are in the best interests of the Commission and the
Columbus Airport to obtain. YWT discussed these coverage?s with the Airport
Director and makes the following recommendations:
1. Purchase $1,000,000.00, Director and Officer Liability Coverage with a
$10,000 deductible
2. Purchase $1,200,000.00, Business Income and Extra Expense Coverage.
Premiums for the additional coverage are $3,490 and $1,000 respectively and
thus keep the insurance premiums at the same level as FY 2015. Total premium
is $109,066.00
Staff recommends adopting all coverage?s and the insurance for the Columbus
Airport.
Motion by Mr. Carl Rhodes, Jr. to approve for the insurance for the fiscal year
of 2016 for the Columbus Airport was made: seconded by Mr. Chris Badcock and
unanimously approved by the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL FOR THE FINANCE POLICY AND PROCEDURE MANUAL FOR THE COLUMBUS
AIRPORT
Mr. Howell reported in previous annual audits, our Auditors have commented that
the Columbus Airport Commission does not have a formal Finance Policy and
Procedure Manual. Such manuals provide the policies and procedures for
financial transactions within the business unit which must be followed by all
staff. This manual was written by the Chief Accountant and has been reviewed
by the Airport Director.
Staff recommends adoption of the Finance Policy and Procedure Manual.
Motion by Mr. Carl Rhodes, Jr., to approve the Finance Policy and Procedure
Manual for the Columbus Airport was made: seconded by Mr. Chris Badcock and
unanimously approved by the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL OF THE RS&H WORK ORDER #008 TO REHABILITATE RUNWAY 13/31 FOR
THE COLUMBUS AIRPORT
Mr. Howell stated the Commission is aware of the poor condition of Runway
13/31. FAA policy prevents that agency from participating in any project
involving 13/31. Staff has been discussing with the Georgia Department of
Transportation (GDOT), Aviation for possible financial support to rehabilitate
this runway. GDOT has advised staff that GDOT is expecting additional funding
next year that could be granted to the Commission for use to rehabilitate this
runway. This would be a 75/25 split between GDOT and the Commission. However,
to qualify for a grant, the project has to be shovel-ready in January 2016. To
meet this standard we will need to evaluate the existing runway, design a
rehabilitation project and then bid the project in January to be prepared to
accept the GDOT funds in the spring. All this up-front work must be paid with
Commission funds with no reimbursement in the future. RS&H has submitted a
work order to perform all necessary tasks to ensure the Commission is prepared
to apply for a GDOT grant should it elect to for $219,513.00.
Staff recommends approving the work order for two reasons. 1) To get the GDOT
grant this work must be completed, and 2) should the Commission elect not to
pursue the project at this time due to overall cost, we would be aware of what
was necessary and should other funding become available would have a viable
project ready for execution.
Mr. Chris Badcock asked what the final width of the runway would be.
Mr. Howell stated the project would change the width from 150 feet wide to 75
feet wide. This is FAA design criteria that the state would want us to follow.
Mr. Badcock mentioned if there would be a conflict with the use of a B17 as
used during the Air Show with a 75 feet wide runway?
Mr. Howell stated he did not know of any illuminating factor versus what he
thought would be an illuminating factor in terms of aircraft category. The
criteria established by Federal Aviation Administration based on the runway use
category which is a B2 runway. The B2 runways with approach criteria we have
are 75 feet wide.
Mr. Michael Greenblatt asks if the work order is approved, will that limit the
75 foot wide runway project.
Mr. Howell stated if the airport is going to get funding from GDOT, the only
way they will give us funding with the 75/25 split is if the project is
designed to the runway to 75 feet wide. If we want to do the work ourselves
and overlay the 150 foot runway, the cost is $2,300,000.00, in the engineer?s
estimate today, and we do not have that money. Do we have to do it? No. The
project does include the work it would take to get the bids in hand to receive
funding for the project. The initial cost of the project from the engineers is
$2,500,000.00. The plus with taking the runway down to 75 feet is all the
lights and signs get replaced as a part of the project. This work order does
not commit us to a project, it gets us to a place to receive funding from the
state. If we do the work or not we will not get the money back. The
rehabilitation is needed.
Motion by Mr. Carl Rhodes, Jr., to approve the RS&H Work Order #008 to
rehabilitate Runway 13/31 for the Columbus Airport was made: seconded by Mr.
Chris Badcock and unanimously approved by the Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL OF THE GEORGIA DEPARTMENT OF TRANSPORTATION FUNDINGS FOR THE
OBSTRUCTION INVENTORY PROJECT
Mr. Howell reported Georgia Department of Transportation has historically
participated in funding part of our 5% of local share to our Federal Airport
Improvement Program (AIP) projects. Staff requests approval of GDOT contract
in the amount of $8,619.00 to support this year?s work. This year?s project is
an Obstruction Inventory for all our runways. RS&H is preforming this work for
us as approved in their Work Order #6 for lump sum of $44,926.00. The inventory
of Runway 6/24 is estimated to be $35,821.00 and is being funded with a federal
grant in the amount of $32,238.00 with an estimated 10% local share of
approximately $3,583.00. GDOT has agreed to participate for half the local
share or approximately $1,791.00. The Runway 13/31 part of this effort is not
eligible for Federal funding, however GDOT will assist us using their standard
75%/25% split. The overall project cost for the 13/31 work is $9,105.00. GDOT
will participate in the amount of $6,829.00, leaving our share as $2,276.00.
Taken together the GDOT will contribute $8,619 to the work with our local share
being $4,067.00.
Staff recommends accepting the GDOT contract as submitted.
Motion by Mr. Carl Rhodes, Jr., to approve the Georgia Department of
Transportation Fundings for the Obstruction Inventory Project Lease Agreement
with Harbour Retail Partners Management, LLC for the Columbus Airport was
made: seconded by Mr. Chris Badcock and unanimously approved by the
Commission. Ayes: 3 / No: 0
CONSIDER APPROVAL OF THE LEASE AGREEMENT WITH HARBOUR RETAIL PARTNERS
MANAGEMENT, LLC
Mr. Howell reported Harbour Retail Partners Management, LLC proposes to lease
from the Commission .23 acres off-airport at the corner of Manchester
Expressway and Armour Road to facilitate a new retail development on the corner
in question. Proposer is requesting a 20-year term with eight additional
5-year extensions for a total of 60 years. Proposer will also remove an
advertising sign on the Premises that belongs to the Commission. Rental
payment will be $304.43 per month or $3,653.16 a year. Rental adjustment will
be made annually according to the Consumer Price Index for the previous year.
The first rental adjustment will take place on March 2017. In addition to the
monthly rent, the Proposer offers a one-time cash settlement of $20,000.00 to
purchase and remove the advertising sign located on the property. All other
lease terms found in our master lease shell apply as necessary.
Staff and Counsel recommend approval.
Mr. Don Morgan reported with this lease there is a situation where they will
re-develop the entire corner of the property. The developer will borrow the
money, and sometimes the lender will want to be assured there is no possibility
in having a default with the Columbus Airport Commission. There is a provision
in this lease that would allow for an upfront total free payment to be left in
the lease, at their option. This is a very small piece of real estate that
because it is in the runway protection zone, the FAA will not allow you to sell
it. There is precedence in the southern region for a sixty year ground lease
not being considered as a sale, which is why this is a sixty year lease.
Motion by Mr. Carl Rhodes, Jr., to approve the Lease Agreement with Harbour
Retail Partners Management, LLC for the Columbus Airport was made: seconded by
Mr. Chris Badcock 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 $75,566.00 with an adjusted net profit
(without depreciation, amortization, grant or Passenger Facility Charges
revenues) of $81,912.00 in July. Year over year it amounts to an increase in
profit of close to 50% in comparison to July of last year in which we had an
adjusted net profit of $43,693.00 (see Summary of Airport Revenues & Expenses).
Propellers Restaurant sales were down by approximately $2,400.00 in July
compared to the same month last year; however, the cost of goods sold (COGS)
and other expenses were held down again this month causing the impact to be far
less significant than last year?s in which we had a loss of $3,160 compared to
this year?s loss of $1,009.00.
Flightways sales decreased by around $22,000.00 compared to July of last year.
Their COGS and expenses were held down resulting in an increase in net income
over last year. Fuel sales and flowage fees were down approximately $28,000.00
compared to last year, rental fees were up compared to last year this time as
well. Actual rents from the rental car agencies were available at the time of
closing.
Compared to this month last year, labor and benefits expenses were down
approximately $9,000.00; repairs and maintenance expenses were up about
$11,000.00; utilities and other services expenses again showed little change;
insurance costs were down around $1,000.00 and administrative expenses were
down by almost $6K over last year.
Tenants Past Due 60 Days or More: See report with financials.
Update on Airport Improvement Project 39:
AIP 39?Construct Airport Perimeter Fencing & Wildlife Hazard Management:
Grant Balance: $1,039,755.00.
Cash flow was negative for the month (see the Cash Flow Summary).
PROPELLERS
Ms. Jennifer Wright provided the following update on Propellers:
? Jennifer Wright and Propeller?s Staff have cut the net loss by $2,150.00
compared to last year. Net loss for July 2015 was $1,009.00 and 2014 it was
$3,160.00.
? Total expenses were decreased by $2,005.00 year over year. 2015 indicated
79% went to labor and benefits.
? Gross sales declined by $2,430.00 year over year for July. Food sales were
down 62%, drink sales down 10%, alcohol sales up 21%, and vending up 11%.
? July 2014 the profit sales were at 50%. Profit on sales increased year over
year by 16%. The Propeller?s 2016 Strategic Plan is to increase profitability
by 5%. This indicates a point in the right direction.
? Costs of goods sold were decreased by $2,570.00 year over year. In July 2014
$5,400.00 Cost of goods were sold. In July 2015 $2,840.00 was sold.
Mr. Howell reported as the Columbus Airport Commission approved several months
ago we will be making an application to the FAA to renew the collection
authority of the Passenger Facility Charges. One of the required items we
needed to accomplish as part of the process was an airline consultation
meeting, which took place on August 25, 2015. Delta attended and was also
representing the interest of Express Jet. The third carrier notified was with
Caribbean Sun, who is the operator of the Justice Flights that come into the
Columbus Airport, they do not pay PFC therefore they did not respond. Delta was
pleased with the meeting, with seventeen projects, all good projects. We do not
expect any push backs on any of the projects, and projects are listed on our
Airport Capital Improvement Plan with FAA. In receiving their letter from
Delta we will submit the whole package to FAA for approval.
Mr. Howell stated the Fence Project is moving along, eliminating a lot of
wildlife habitat has been done, a lot of trees have been cleared of the runway
object free area 6/24. The fence began at the southeast end of the Columbus
Airport property and will be approaching the hangar areas by mid-month. The
project is going well and many issues have been resolved.
Mr. Howell has received a note from the FAA that the GPS night time restriction
for Runway 24 was lifted this month. Once the restriction survey on 13 has
been completed we will see what will need to be done in that area.
Mr. Howell stated the slight uptick in enplanements, only being two percent was
positive. The reason deplanements were high was due to diversions. The
passengers were deplaned here and bused to Atlanta.
OTHER MATTERS
Mr. Mike Scheller encouraged aggressive action for the wildlife. The short
term and long term measures addressed in the past seemed successful. Now more
issues are arising due to the wildlife. The aggressive actions against wildlife
went on consistently for two years. However, in the last year flocks of birds
have increased. This increases the threat of wildlife with bird strikes and so
forth. What is the airport now doing and what plans are in place to minimize
the risk relating to wild life on the airport property?
Chief Melissa Chadwick said that Public Safety is addressing the issue with
sweeps, in being more aggressive, with putting safety first.
Mr. Scheller asked what aggressive means?
Chief Chadwick response was to kill the birds. We are doing what we can to
minimize the problem.
Mr. Howell stated a lethal process is in place concerning all wildlife on the
airport property.
We have started to solve some of these issues with the new fence project. We
assure you we will stay on top with our direct attention in solving the birds
and wildlife. We are committed to keep all tenants safe. Please notify us of
any bird strikes or wildlife issues.
Mr. Richard Scogin from Performance Fertilization asked if the airport does any
chemical mowing.
Mr. Howell stated yes we do chemical mowing annually. We are open to
suggestions in grass cutting, chemicals, and any information that may be
beneficial regarding the property and wildlife. Also, Mr. Scogin was asked to
provide his business card to Mr. Howell, who will pass it to the Maintenance
Manager, who will be in contact.
Mr. Flanagan said more information will be provided on grass cutting, and the
wildlife issues.
There being no further business the meeting adjourned at 10:14 AM
APPROVED:
____________________________ _____________________________
Mary Scarbrough, Secretary
Winfield G. Flanagan, Chairman
Attachments
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