Board of Aeronautical Commissioners Page 2
July 14, 2008
BOARD OF AERONAUTICAL COMMISSIONERS
MINUTES OF
July 14, 2008
CALL TO ORDER
Chair Charles Hasek called the July 14, 2008 Board of Aeronautical Commissioners meeting to order at 7:00 P.M. Notice of said meeting was provided by posting a proposed agenda at least 24 hours in advance.
ROLL CALL
Charles Hasek, Chair, Present Gary Fox Present
Councilmember Gray Present Ken Stremming Present
Gary Davisson Present Phil Mall Present
Jeanne’ Willerth Absent Cathie Bordner Present
Ray Robinson Absent
CITY STAFF PRESENT
Chuck Owsley, Director of Public Works, Bob Hartnett, Deputy Director of Public Works; Darlene Pickett, Assistant Director of Finance; John Ohrazda, Airport Manager; Abe Forney, Asst. to Airport Manager, John Barker, Senior Staff Engineer; Maxi Gile, Clerk-Typist.
OTHER ELECTED OFFICIALS AND/OR GUESTS
Terrie Fox, Guest
Randall Wiedemann, Guest
Paul McDonnell, Guest
1. Approval of Agenda (Additions/Deletions)
Chair Hasek added Preview of Business Plan-Presentation to F & PC as Item No. 3B.
ON MOTION OF COMMISSIONER STREMMING AND SECOND BY COMMISSIONER FOX, THE BOAC VOTED UNANIMOUSLY TO APPROVE THE AGENDA.
2. Consideration and Approval of Draft Minutes of June 9, 2008 and June 25, 2008
ON MOTION OF COMMISSIONER FOX AND SECOND BY COMMISSIONER STREMMING, THE BOAC VOTED UNANIMOUSLY TO APPROVE THE MINUTES OF JUNE 9, 2008 AND JUNE 25, 2008.
3A. Financial Report
Darlene Pickett reported the financial statement was as of May 2008. She indicated that the Airport fund had an operating loss of $323,118. There were operating revenues of $1,116,548 against expenditures of $1,439,666. Non-operating items and transfers bring year-to-date net income to $645,004. When depreciation expense of $244,424 is excluded (added back), net income adjusted for depreciation expense is $877,316. Of this amount, $936,976 is revenue from grant reimbursements. Without these grants, the airport fund would have a net loss of $59,660 for fiscal year 2008.
Ms. Pickett indicated that cash balances as of May 31, 2008 are Operating $-29,107 and Construction $1,179,664. This is an increase of $104,590 for operations and a decrease of $94,188 for construction from last month. Operating revenues are up compared to last year ($7,122 or .6%). Fuel sales have increased $159,317 or 32.8% over the last year. Fuel sales in gallons are up 16,451 or 12% over last year. Jet-A fuel sales have increased 25,338 gallons or 79% over last year. When comparing current year to prior year revenues, fiscal year 2007 saw an insurance reimbursement for storm related damage which accounts for the lower year-over-year revenues. If this reimbursement were eliminated from the analysis, the airport would be looking at an increase of $190,000 or 20%.
Expenditures are up compared to last year (up $12,414 or .9%). ‘Other’ expenses are down $190,073. This is due to approximately $166,000 in rebuilding expenses from the storm damage that was expended during this same period last fiscal year. If these storm damage expenses are removed from the analysis, expenses would be up approximately $178,000 over last year. Fuel and lubricant expenses are up $155,000 compared to last year. This is primarily due to the increase in jet fuel sales (detailed above in revenue section) and significant increases in fuel costs.
3B. Preview of Business Plan-Presentation to F & PC
John Barker distributed a copy of Packet Form No. 1843 for the F & PC presentation of the Draft Lee’s Summit Municipal Airport Business Plan and a copy of the Business Plan to each person in attendance at the meeting. Mr. Barker introduced Randall Wiedemann of Wiedemann & Associates, Inc., and Paul McDonnell of Clough Harbour & Associates, LLP. to BOAC asking them to give a brief description of their companies and then present their power point.
Randall Wiedemann gave a brief description of his company. Mr. Wiedemann stated over the past 20 years of being in business, Wiedemann & Associates, Inc. had gained an abundance of knowledge on how airports operate across the nation which enabled them to design the Business Plan for the Lee’s Summit Municipal Airport.
Paul McDonnell said Clough Harbour & Associates, LLP. (CHA) is a full service engineering consulting firm that specializes in transportation. CHA has a branch located in downtown Kansas City as well as offices throughout the country. CHA and Wiedemann & Associates, Inc. teamed up to combine efforts in developing the Business Plan.
The Power Point of the Business Plan, attached to the minutes, was started at this time. Mr. Wiedemann and Mr. McDonnell jointly went thru the Power Point giving explanations of the Business Plan starting with the study purpose and ending with the action plan.
Chair Hasek asked if CHA & Wiedemann & Associates, Inc. could add information to their slide presentation stating that there is a volume of business wanting to move their aircraft to the Lee’s Summit Municipal Airport because of convenience and lower costs.
Mr. Wiedemann said they could add a statement possibly calling the information “favorable competitive environment”.
Commissioner Stremming asked if the Performance Plan would put the airport in compliance with B-2 safety standards.
Mr. McDonnell stated it would put the airport in compliance with B-2 and C-2 standards.
Commissioner Mall asked if CHA had looked at the impact of the Business Plan on the surrounding neighborhoods. The Lakewood community has expressed their concern regarding the noise level if there is an increase in jet aircraft activity without an air traffic control tower being erected.
Mr. Donnell responded that the business plan does not address noise levels and CHA did not do any environmental investigations. Wiedemann & Associates, Inc. concluded that there is no near term justification for an air traffic control tower, but they would prepare to address the issue. Mr. McDonnell also stated that the older, noisier corporate jets are being replaced with the newer jets that are much quieter and they have a tendency to land once and take off once and do it during business hours when people are at work and at school.
Commissioner Stremming asked how the board could help the airport decision making individuals understand how business aviation fits into the modern action of business today.
Mr. Wiedemann stated that CHA and Wiedemann & Associates, Inc. had recommended an airport community value study to show how business aviation works today and the value of the airport relative to other things that could go on there. The study would not just look at its economic impact but also the valuation of the asset of the airport.
4. Suggestion Box Ideas
None
5. Staff Report
Abe Forney reported the airport sold 962 gallons of fuel for the B-17 and Barnstormers was around 800 gallons.
John Barker reported that offers have been made on two more properties. With the exception of one, all other properties have been approved by MoDOT. Mr. Barker said the Codes Department has given verbal approval of installing the modular units at the Airport. The contractor has been contacted and the date has tentatively been set to start work on July 28, 2008. There is a multi-step process of putting in the foundation, setting the modular units and putting in the ramps and stairs to the three doors. The terminal and the restroom facilities will be available twenty four hours a day. The Airport expects operation in the modular units to be 8:00a.m. to 5:00p.m..
6. Members Discussion
All the members of BOAC welcomed Phil Mall back to the BOAC board.
ON MOTION OF COMMISSIONER MALL AND SECOND BY COMMISSIONER FOX,
THE BOAC VOTED UNANIMOUSLY TO ADJOURN.
ADJOURNMENT
Chair Charles Hasek declared the Regular Session adjourned at 8:10 P.M.
Minutes transcribed by Maxi Gile.