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:

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 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 $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).


Ms. Jennifer Wright provided the following update on Propellers:
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




____________________________ _____________________________

Mary Scarbrough, Secretary Winfield G. Flanagan, Chairman