MINUTES OF THE REGULAR MEETING OF THE COLUMBUS AIRPORT
COMMISSION HELD AT THE COLUMBUS AIRPORT WEDNESDAY, JANUARY 28, 2015 AT 9:30 AM

The following Commission members were present for the entire meeting except as noted.

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
Mary Scarbrough, Secretary
W. Donald Morgan, Jr., Legal Counsel
Sonya Hollis, Marketing Director
Anthony Cooper, Chief of Public Safety
Michele Renfroe, Flightways Columbus, Administrative Manager
Bruce Anderson, Maintenance Manager
Kelvin Mullins, Public Safety
Andre’ Parker, Public Safety
Terry Blaxton, Public Safety
Shaundra Goodwin, Public Safety
Lorrie Brewer, Chief Accountant
Melissa Chadwick, Public Safety
Jennifer Wright, Restaurant Manager
Ed Gibson, Public Safety

Others present:

Marvin Brown, FAA; Bill Hogan, Brad Wente, RS&H; Matt Hinkle, Cham Watkins, Richard Ramey, Launa DesPortes, Richard DesPortes, Emily Belobraydic


BUSINESS OF THE MEETING


APPROVAL OF MINUTES

Motion by Mr. Thomas Forsberg to adopt the minutes for the January 28, 2015 meeting as presented; seconded by Mr. Kerry Hand and unanimously approved by the Commission. Ayes: 3 / No: 0


GENERAL AVIATION COMMITTEE UPDATE

Mr. Richard DesPortes reported the General Aviation Committee, consisting of the following volunteer’s: Mr. Bill Buck, Mr. Chris Cook, Mr. Steven Hewlett, Mr. Dean King, Mr. Jack Wright, and Mr. Desportes, held the first meeting on January 12, 2015. These are Columbus Airport Tenants and long time aviators. At the meeting items discussed was the adoption of the non-aeronautical storage, vehicle access to the hangars, and hangar rental rates, Mr. DesPortes provided copies of drawings to the Commissioner’s where he has measured the fence line, without any obstruction, this will add more space to the areas in meeting the criteria in keeping away by ten feet from the fence. He is not sure if the grassy areas may be a problem during the rainy seasons. He suggested they may try and see if there is a problem, prior to making final decisions.

Mr. Kerry Hand asked Mr. DesPortes to brief everyone on other ideas he may have.

Mr. DesPortes stated that Dr. Michael Gorum, tenant for over a year, is a local pilot who had learned to fly at the previous flight school ran by Mr. Todd Shellnutt, on the airport property. This is an important item of interest to have another flight school at the airport.

Mr. Hand asked if there has been an interest from anyone concerning opening a new flight school on the airport property.

Mr. Howell reported he has had three separate proposers since the closing of Skyline Columbus previously ran by Mr. Todd Shellnutt. Mr. Howell and the Columbus Airport Commission discussed this matter in the November 2014 work session. The decision was made at that time the previous building would not be available as an option, due to traffic issues at the top of the hill, and another hangar tenant, .to open a new flight school. Mr. Howell has been very liberal in communicating with proposers of possible modifications made to Hangar 13, or if someone is interested in placing a modular office building outside the fence line. If a modular building is chosen, the Columbus Airport Commission will add a gate, for their access to the offices. To date no formal proposal has been received, only exploratory meetings with Mr. Howell have taken place regarding opening a new flight school. Mr. Howell is interested, and both encouraging and flexible with the proposers this far, as long as they are meeting the minimal standards.

Mr. Desportes suggested maybe putting some pressure on the three contacts, in hopes of squeezing and corralling them, may be a realistic option, to increase the current revenue.

Mr. Flanagan told Mr. Desportes the Columbus Airport Commission will take all this information in consideration.

Mr. Howell stated revenue has not been an issue and has not been discussed with the three contacts. As candidates will be given breaks on any buildings on the premises.


CONSIDER APPROVAL OF THE AIRFIELD FENCING BIDDING AND CONSRUCTION MANAGEMENT WORK ORDER FOR REYNOLDS, SMITH & HILLS

Mr. Howell reported the Columbus Airport Commission recalls the FAA granted the Columbus Airport $1.200, 000.00 to replace the airfield perimeter fence. The fence design was conducted by Michael Baker, the previous engineering consulting firm. The grant is a 90/10 grant with our ten percent coming from the passenger facility charges and state funds. Our current Aviation consultant Reynolds, Smith & Hills, have two of their staff present in the meeting today. They have submitted a draft work order for services in support of this project. Services to be provided are bidding, including development of bid documents and contracts, construction administration, and Resident Project Representative Services. These are the same services that were normally provided by the previous consultant, Michael Baker, Inc. had proposed for the project when Michael Baker, Inc. had completed our grant application for the project in 2014. We have had the grant and FAA will start inquiring since it has been six-eight months to draw off the grant. Mr. Howell recommended approval of the work order and that the Columbus Airport Commission Chair signs the document

Motion by Mr. Kerry Hand to consider approval of the Airfield Fencing Bidding and Construction Management work order for Reynolds, Smith & Hills for the Columbus
Airport as presented; seconded by Mr. Thomas Forsberg and unanimously approved by the
Commission. Ayes: 3 / No: 0


CONSIDER APPROVAL OF THE PASSENGER FACILITY CHARGE (PFC) APPLICATION WORK ORDER WITH REYNOLDS, SMITH & HILLS

Mr. Howell reported in the past, the Columbus Airport Commission has been granted authority from the Federal Aviation Administration to collect and use the Passenger Facility Charges as provided by the Federal law. The Columbus Airport Commission has for many years had a passenger facility charge application with FAA. Passenger facility charges provide $4.50 for each enplanement, boarding at the airport, with them keeping nineteen cents for each one collected; we receive the rest of the collection authority from the airline. Passenger Facility Charges as normally used to meet the Columbus Airport Commission local share requirements for the Airport Improvement Program grants. The Commission’s collection authority for the current application will expire February 1, 2015. The Commission is required to file a new application with Federal Aviation Administration to get approval to collect and use Passenger Facility Charges for future projects. This effort will improve the creation of a project funding plan, consulting with the Federal Aviation Administration, meeting with affected air carriers, preparation, and submission of the Passenger Facility Charge application to the Federal Aviation Administration. The Columbus Airport Commission selected Reynolds, Smith & Hills as their Aviation General Consultant in 2014. Reynolds, Smith & Hills has a great deal of expertise in Passenger Facility Change Applications and at the request of the Airport Director has submitted a draft work order to prepare the Columbus Airport Commission’s next application. The cost for the work will be $26,765.00 as the process takes ten to twelve months, depending on the approval time at Federal Aviation Administration. The cost has been split between this fiscal year and the fiscal year of 2016. The initial cost for the application will be borne by the Columbus Airport Commission however; the cost of the application itself will be included in the application and will ultimately be reimbursed for the total amount. Staff of the Columbus Airport recommended approval of the work order and for the Columbus Airport Commission Chair to sign the document.

Motion by Mr. Kerry Hand to consider approval of the Passenger Facility Charge application work order with Reynolds, Smith & Hills for the Columbus Airport as presented; seconded by Mr. Thomas Forsberg and unanimously approved by the Commission. Ayes: 3 / No: 0


CONSIDER APPROVAL TO REVIEW AND THE ADJUSTMENTS OF HANGAR RATES

Mr. Howell reported this matter has been discussed for some time, most recently at the recent GA Committee Meeting as mentioned by Mr. Desportes, General Aviation Chairman. This comes to pass, as CSG is an obligated airport. The airport receives federal funding such as AIP and PFC, as an obligated airport each year we receive a grant we sign grant assurances. In the grant assurances we indicate to the Federal Aviation Administration we will establish pricing practices that are fair and reasonable, that maintain a rental structure that makes the airport as self-sustaining as possible, and use reasonable methodologies including the market value. Historically the majority of the fiscal burden in supporting the airport has rested with the Commercial airlines. Over the span of time this has created a situation where the CSG cost per enplaned passenger is one of the highest in the United States. Given the level of activity of the commercial airlines, the burden fails the fair and reasonable test and creates a hindrance to the recruitment of additional air service. The Columbus Airport Commission owns one hundred ten hangars, not including community hangar spaces, or tie downs. The rates for the hangars have not been adjusted in a number of years. To date the Columbus Airport Commission maintains a hangar waiting list with twelve entities waiting for hangar space, one of those being on the list for over a year. In 2014 Ms. Hollis performed a study of what some of the competing airports in our area are charging for their hangars. In reviewing the information it was determined none of them meet the standards of the Columbus Airport, We have a good facility and people do want to be at our airport. On both small and large hangars we are behind several other airports. We could be in violation of Federal Aviation Administration since we are not currently charging fair market value. Mr. Howell is proposing a fifteen percent increase effective March 1, 2015 across the board. Then in January 2016 increase another ten percent. In the spring of 2016, we will go back out and conduct another hangar study. With these increases, beginning March 1, 2015 we will gain $7,000.00 extra in this fiscal years. For the first half of 2016, it will be an additional $14,000.00 increase in revenue. With the increases our airport will continue to be less than the other airports in the area. The General Aviation Committee is very supportive of the increase of the hangar rates, and the reality is that with our current cash flow, and where it is now. In addressing and managing the facility in moving forward with only one carrier, we need to address expenses. We do have a hangar waiting list, the non-aeronautical revenue, the cost fees; we have to take an active approach managing the facility in moving forward with what type of revenue comes into the airport.

Mr. Matt Hinkle acknowledged he is aware the current hangar rates are below market value; however, he asked the Columbus Airport Commission to consider in moving forward increasing the hangar rent. The aircraft owners have to pay evaloram taxes themselves which is a total cost of their planes being parked at the airport. Those property taxes are a part of the current hangar rents. Another item to consider would include repairs to the older hangars.

Mr. Howell reported that Public Safety will be providing hangar inspections, primary goal that there are no fire hazards, which will be an addition to make repairs needed. The work order system in place has been an asset where Tenants were notified since the implementations of the new work order system, Tenants can contact Ms. Mary Scarbrough for hangar repairs as needed.

Mr. Howell confirmed with Ms. Scarbrough there have been quite a few work orders turned in over the past several months requested by the Tenants for repairs in their hangars.

Mr. Richard Ramey, currently renting Hangar 5-D asked the Columbus Airport Commission to solve and address all maintenance issues, needed repairs prior to increasing the current hangar rent. Mr. Ramey reported currently has his plane sitting in water, due to standing water. He thinks all repairs needed should be done accordingly prior to raise the hangar rates not only for himself but, for everyone.

Motion by Mr. Thomas Forsberg to consider approval to review and the adjustment to hangar rates at the Columbus Airport as presented; seconded by Mr. Kerry Hand and unanimously approved by the Commission. Ayes: 3 / No: 0

Mr. Kerry Hand commented in Mr. Ramey’s hangar and other needed repaired, he encouraged the Columbus Airport Commission be advised with open issues as this request.

Mr. Howell stated that these issues will be addressed, these repairs will be identified, and a solution will be provided in addressing the repairs.

Mr. Hinkle stated through the years, the hangars are old and with the numerous new black tops through the years, the taxiway has come up above ground level, with the hangars remaining at the same ground level, as this has been the case with his own hangar and where and why the waters goes into the hangars.


CONSIDER APPROVAL OF PUBLIC SAFET DEPARTMENT OVERTIME POLICY

Mr. Howell reported the federal work guidelines allow employers to set a policy on the payment of overtime for Public Safety employees as long as such policies do not violate federal laws. After the completion of last year’s salary survey we determined that our overtime policy for shift working the Public Safety employees far exceeds that of the federal standards. The majority of public safety personnel are assigned to one of three work shifts. Each shift is twenty-four hours on and forty-eight hours off. The pay periods for these employees are one hundred and six hours versus the eighty hours for the regular employees. We pay these shift employees approximately nineteen hours for every twenty-four hours that are on duty. The remaining hours are designated for sleep. Over the span of pay period, one shift will actually work seventy-seven hours and the other two will work ninety-six hours, both below the one hundred and six hour mark to normally quality for overtime. Currently when the public safety officers are needed to respond during the designated sleep time, they are compensated for the entire sleep period at time and a half. If an employee is called in to cover a shift for a sick or vacationing employee, the employee called in is paid time and a half for the entire shift. In most cases these employees drawing this overtime pay have not exceed the one hundred and six hours in the pay period, policy proved for them to be paid at the overtime rate. The current policy creates a number of issues both fiscally and fairness to other employees. The airlines reimburse us three hundred thousand dollars per year for providing both police and fire safety presence to support the airline operation. The existing policy artificially inflates those expenses by charging overtime for hours that don’t actually qualify for that pay rate. This in turn drives up the cost per enplaned passenger charged to the carriers. For instance the public safety office in this fiscal year there was a budget of twenty-six thousand plus change. With the remaining employees at the airport only totaling thirteen thousand dollars. The higher numbers on the enplaned contributes to the overall expenses of operating. With the current structure of the public safety, overtime was being paid to those employees when they had not exceeded the one hundred and six hours, where the regular employees have to work over eighty hours to receive overtime pay. The carriers pays the airport three hundred thousand dollars per year for police support The proposal is to continue with the current structure and log it as regular time, if they work sick or vacation time exceeding one hundred and six hours.. Mr. Howell gave all public safety officers in attendance an opportunity to ask questions or make comments concerning the public safety overtime policy as provided.

Motion by Mr. Kerry Hand to approve the Public Safety Departments Overtime Policy as presented; seconded by Mr. Thomas Forsberg and unanimously approved by the Commission. Ayes: 3 / No: 0


CONSIDER APPROVAL OF THE COLUMBUS AIRPORT COMMISSION FEE SCHEDULE

Mr. Howell stated one of the most common comments received in meetings with the Columbus Airport Commission customers is they request consistency in the administration of policy. One area found to be lacking in the implementation of fees for our services prior to moving forward with the reward program and will be provided to all customers. In some areas they were inconsistent, and some areas we don’t charge for services as an airport would normally collect for. In resolving this Mr. Howell and Senior Staff has created the attached fee schedule. Understanding that this will be a work in progress, we feel this is a good start and approval will give staff a base line to work from. Staff will review this schedule again during the fiscal year of 2016 budget process and recommend any changes to be adopted. His schedule will be made part of the 2016 budget and get adopted in its final form when you adopt the 2016 budget. In the future the schedule will be reviewed annually as part of the budget process. Adoption of the schedule will begin the process of providing a balanced and consistent approach to the charging of fees for services at the Columbus Airport, and give direction to staff eliminating any guesswork on the part of our customers or staff. This information will be added to the Columbus Airport website for others to review.

The Columbus Airport Commission Fee Schedule was tabled and will be reviewed again at the February 2015 Commission Meeting.

Motion by Mr. Kerry Hand to consider adoption of the Columbus Airport Commission Fee Scheduled as presented; seconded by Mr. Thomas Forsberg 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 made a profit of $168,036.44 with an adjusted net profit (without depreciation and amortization or Grant and PFC revenues) of $40,068.92 in December. Year over year it amounts to an increase in profit of over 1,000% (without depreciation) in comparison to last year (see Summary of Airport Revenues & Expenses).

Propellers Restaurant sales were down approximately $2,500 compared to this month last year; Fuel sales and flowage fees were up approximately $50K, rental fees were up around $12K. Actuals were used for the car rental revenues for December except Hertz which were not available at the time of closing.

Compared to this month last year, labor expense was down approximately $8K; employee benefits expenses were down $2K; repairs and maintenance expense was down approximately $1K and utilities and other services expenses were down approximately $7K; and administrative expenses were down approximately $6K over last year.

Update on Airport Improvement Projects 37 & 38:

AIP 37 – Taxiway C Relocation & Airfield Electrical Improvement Project $3,923,867; Balance: $91,811. Project closed out in December 2014.

AIP 38 – Airport Perimeter Fencing & Crack Seal, Seal Coat & Mark GA Apron Project $384,678; Balance: $126,881.

Cash flow was positive for the month (see the Cash Flow Summary.

Mr. Howell thanked Ms. Brewer for a good report. He reported in December 2013, there was no ILS therefore, in reviewing the numbers, Justice Flights were back and congratulated the staff in keeping expenses down.

Ms. Sonya Hollis provided the following information: Mr. Hand asked Ms. Hollis if any You Tube items were on the website.

Mr. Howell stated that something would need to happen at the airport to capture something for You Tube.

Ms. Jennifer Wright provided the following update on Propellers:

Mr. DesPortes asked if Propeller’s is being advertised to the General Aviation/Tenants at the airport. If discounts are available for the Tenants and if their parking vouchers can be validated.

Ms. Wright stated yes.

Ms. Belobradic suggested more advertising to be available in the Fixed Based Operations building. This information would draw in more business to Propellers and was new information to the audience.

Ms. Renfroe stated that the Fixed Based Operations does have brochures and information readily available for the customers on Propellers.

Ms. Hollis stated menus are available too at the Fixed Base Operations.

Mr. Howell provided some concrete numbers in reviewing the loss in the restaurant which was about $73,000.00, in December 2014 Ms. Wright knocked off one thousand dollars off her overall loss year after year. If she continues to do that, she will know off a total of twelve thousand dollars off her revenue, being thirteen percent increase in her revenue. She has worked very hard, very proactive, and the Columbus Airport Commission is very fortunate to have Ms. Wright as an employee.

Ms. Michele Renfroe provided the following information:
    · Fuel gallons pumped year or year comparison:
        Fuel item
        Gallons pumped December 2014
        Gallons pumped December 2013
        Change
        Auto
        237
        218
        8%
        AVGAS
        7688
        6589
        15%
        Diesel
        203
        133
        42%
        Jet A (Express Jet)
        11457
        15761
        -32%
        Jet A (Retail)
        11122
        13171
        -17%
        Jet A (Contract)
        18129
        7202
        86%
        Jet A (Gov’t/Mil)
        1351
        1269
        6%
        Jet A (Justice Flights)
        5424
        1855
        98%

    · Justice Flight number of aircraft into CSG is 2013 (1) compared to 2014 (12).
      Keep in mind that all Justice Flights pay for ground handling whether they take
      Fuel or not.
    · We are in full swing of the 2015 basketball season which means charters for Flightways
      Columbus staff. The basketball season seems to be off to a great start. There are
      Several charters already on the books and more Teams calling for future games.
    · Sonya and I are excited about attending the upcoming schedulers and dispatchers conference.
      We will be marketing the FBO as well as the Columbus Airport in setting up a booth with
      The banners you see here today. This conference is a meet and greet with the people that schedule and dispatch flights all over the world. We are looking forward to setting up a business relationship with new companies that might be flying to Florida or surrounding
      States so they will look at the FBO for their fueling needs.
Ms. Renfroe provided a Fuel Price Comparison Chart to the Commissioner’s.

Mr. Hand inquired what exactly is reflected in the Jet A fuel.

Ms. Renfroe stated both Sports and Justice Flights are included.

Mr. Hand if the Sports and Justice Flights are under contract?

Ms. Renfroe stated sometimes they are under contract, sometimes retail.

Mr. Hand if these provides large increases?

Ms. Renfroe reported both she and Ms. Hollis would be attending an upcoming conference in San Hosea, California which would serve as a meet and greet.

Ms. Renfroe reported on the Shell Flight Plan, passport book, Flightways Columbus is one of twelve Fixed Based Operations on the flight plan, in providing more exposure.

Mr. Renfroe thanked Mr. Joey Rosier, Master Built, Mr. Rick Payne, and Mr. Martin Flournoy for allowing she and Ms. Hollis to photograph their planes for the new Flilghtways Columbus brochure, as provided to the Columbus Airport Commission.

Mr. Howell introduced Mr. Bruce Anderson, as the new Maintenance Manager at the airport.

Mr. Flanagan welcomed Mr. Anderson to the Columbus Airport Commission.


OTHER MATTERS

Mr. Matt Hinkle stated his purpose today is to bring an issue that is safety related and has the appearance of discriminatory business practices to your General Aviation Tenants on the airport property. In the T-Hangar Leases, on item four it states the following:

“T-Hangars will be vacated immediately if, for any reason, more than fifty percent of the interest held by the original Lessee is sold, transferred or otherwise conveyed to a new owner. Such new owner and any remaining original Lessee will have no right of continued occupancy”

Mr. Hinkle provided each of the Commissioner’s with the Federal Aviation Administration registration for three “N” plane tail numbers leased to one individual but, only one of the aircrafts are in their ownership.

Mr. Hinkle reported he had two reasons for bringing this information to the Columbus Airport Commission.

1. He would like to eliminate the taxi hazards that currently exist around Hangar 6-D and he does fly other owners aircraft in that area and he is responsible as well as liable for those aircraft while under his command.
2. It is very concerning to Mr. Hinkle that a model tenant would be evicted from their hangar on a technicality of hangar policy during the same time another tenant has been allowed to disregard the entire premise of why someone would have continued use of a hangar to begin with.


Mr. Hinkle asked the Commission Board, when he and the other General Aviation Tenants on the field expect action by them to rectify this situation? He would appreciate within their answer to include an exact time frame and method of corrective action.

Mr. Winfield Flanagan addressed and provided a letter to notify and we will enforce as of March 31, 2015.

At the end of the January 28, 2015 Columbus Airport Commission Meeting Public Agenda, the Columbus Airport Commission went into a closed session to discuss a personal matter. The meeting went back into the Public session on the motion of Mr. Thomas Forsberg and seconded by Mr. Kerry Hand and unanimously approved by the Commission. Ayes: 3 / No: 0


There being no further business, the meeting adjourned at 11:08 A.M.




____________________________ _____________________________
Mary Scarbrough, Secretary Winfield G. Flanagan, Chairman

AFFIDAVIT OF CHAIRPERSON COLUMBUS AIRPORT COMMISSION

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