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:
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
Mr. Howell introduced Ms. Lorrie Brewer, to provide a financial update. 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).


Ms. Jennifer Wright provided the following update on Propellers:

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.

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.
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.




____________________________ _____________________________

Mary Scarbrough, Secretary Winfield G. Flanagan, Chairman