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Home My WebLink About04-15-2014 Regular MeetingMinutes of the Fairhope Airport Authority April 1S, 2014 The Fairhope Airport Authority met Tuesday, April 15, 2014 at 4:30pm in the Delchamps Suite, Room 1 in the Civic Center, 161 N Section Street. Present: Charles Zunk, Chairman; other members present: Charlie Bassett, Jack Burrell, Pamela Caudill, Joe McEnerney, Rod Platt, and Howard Hadley. Present also was David Bagwell, Attorney, and Bill Ross of Continental Motors. Cynthia Boothe took the minutes. The minutes of the February 18, 2014 meeting were considered and Pam Caudill stated that under the Security Plan section the wording should be changed to state that she agreed to look at the plan to update it. The amended minutes were then approved on a motion by Charlie Bassett, second by Howard Hadley, and unanimously carried. The minutes of the March 18, 2014 meeting were considered and approved on a motion by Rod Platt, second by Jack Burrell, and unanimously carried. Update on "The Academy at Fairhope" - Charlie Bassett provided an update to the group, stating that work on the construction was still underway with some weather delays but that the delays should not affect the overall schedule. - Resolution and Certification for FY2014 AIP Grant — The resolution was introduced by Pam Caudill and seconded by Joe McEnerney. Charles Zunk stated that the grant is likely for approval for funding of a $1,200,000.00 project with the Federal Aviation Administration contributing $1,080,000.00 (90%), the State of Alabama Department of Transportation contributing $60,000.00 (5%), and the remaining funds of $60,000.00 (5%) to be provided by the Fairhope Airport Authority. Update on Advantage Sites Program — Rod Platt stated that the approval went through to designate the airport as an Advantage Site and that the board can move forward with selling the site to one or more tenants. Pam Caudill noted that the certification of the site needs to be updated every two years. Update on repairing storm damage to AWOS — Bill Ross of Continental stated that repairs had been completed but with recent rainstorms they were having trouble keeping it on line so technician will be returning to help sort out the problem. Discussion of ALDOT 2014 Airport Audit — Howard Hadley stated that most of the items on the audit have been corrected and Rod Platt noted that there is now a new windsock installed. Charles Zunk notified everyone that the airport had received its annual operating Certificate. Discussion of replacement draft of Minimum Standards — Charles Zunk stated that he used a combination of several models to create the replacement draft and that it can be enhanced to the advantage of the airport but must meet at least the minimum standards. Pam Caudill noted that there is no mention of a security and emergency response plan and that it should be added to the draft. Discussion of RFP for FBO lease — Charles Zunk stated that he looked at 5 or 6 examples for writing the FBO but that there is no hurry to finalize or post it as the current FBO does not expire until 11/30/15. Discussion of MRO Conference —Joe McEnerny and Howard Hadley attended the conference and reported that even though they did not have the best venue for their booth they still had quite a few visitors and felt like they were able to get Fairhope Airport's name out to the conference. Discussion of Conservation Easement — Rod Platt stated that the application is stalled because the processor at the Corp of Engineers has been on extended sick leave but expects acceptance possibly by the end of next week. Discussion of bi-annual update to Security Plan — Pam Caudill stated that she changed the name of the plan to the Security and Emergency Response Plan. She is also checking with the city to make sure that it does not conflict with their emergency plan. She also stated that everyone should let her know if they had any comments or changes that needed to be addressed. Charles Zunk stated that the plan is confidential and not a public document. Treasurer's Report — Joe McEnerney went over the Treasurer's Report stating that it was correct and now includes a Net Cash Flow section. He also stated that the second scheduled debt reduction payment had been made and that now that the roof and hanger door repairs are completed that the expenses for them will now be capitalized. He also suggested that when the new FBO lease is negotiated that the board should consider a cost increase for the rent of the office. New Business — Bill Ross of Continental stated that the flyer for the "National Learn to Fly Day" on May 24, 2014 at the Fairhope Airport is completed and that they were working with area schools to talk to students about flight training. Charles Zunk mentioned that 15 of the 16 hangers are rented and that he has been contacted by 2 individuals showing interest in renting the last available space and he hopes to have a commitment from one of them soon. There being no further business, the meeting was adjourned at 5:26pm. Attachments to the Minutes: Resolution and Certification for FY2014 AIP Grant C Airport Operating License FY 2014-2015 RESOLUTION AND CERTIFICATION FOR FY2014 AIP GRANT On April 15, 2014 the Fairhope Airport Authority hereby Resolves and Certifies: 1. That the Fairhope Airport Authority authorizes its Chairman, Charles R. Zunk, to make applications for grant funding for its FY2014 AIP Project described as "Construct Apron, Phase 1; Construct Taxiway, Phase 1". Total project cost is expected to be $1,200,000. Funding assistance of $1,080,000 (90%) shall be requested from the Federal Aviation Administration; funding assistance of $60,000 (5%) shall be requested from the State of Alabama Department of Transportation; and funding of $60,000 (5%) shall be provided by the Fairhope Airport Authority. 2. That the Chairman of the Fairhope Airport Authority is authorized to sign any related forms, documents and contracts to fund, construct, and complete the FY2014 AIP Project at the H. L. Sonny Callahan Airport. That the Fairhope Airport Authority is authorized to enter into an airport improvement funding agreement with the State of Alabama, acting by and through the Alabama Department of Transportation, for the purpose of undertaking a project to make improvements at the H. L. Sonny Callahan Airport, with partial funding provided by the State of Alabama. 4. That any agreements be executed in the name of the Fairhope Airport Authority, attested by an Officer or Attorney of the Fairhope Airport Authority, and the seal of the Fairhope Airport Authority affixed thereto. That the authority of the Fairhope Airport Authority to enter into contracts with the State of Alabama has been reviewed by the Attorney of the Fairhope Airport Authority, and in his opinion, the Fairhope Airport Authority is duly authorized to commit the Fairhope Airport Authority to an agreement with the Alabama Department of Transportation. 6. That the Fairhope Airport Authority has already accumulated and set aside its local matching share of funds amounting to $60,000 required for this Project. Alabama Department of Transportation Aeronautics Bureau AIRPORT OPERA TING LICENSE Effective: FY 201412015 This certifies that Fairhope Airport Authority as owner and operator of H. L. "Sonny" Callahan Airport Fairhope, Alabama has, in accordance with the provisions of the Code of Alabama 23-1-357(c), met the requirements for the issuance of a Public Use Airport Operating License. This license is not transferable and, unless sooner surrendered, suspended or revoked, shall continue in effect. Limitations: None JohA R. Coope' Transportation Director John C. Eagerton IV, D. P. A. Aeronautics Chief CITY OF FAIRHOPE AIRPORT AUTHORITY GOVERNMENTWIDE FINANCIAL STATEMENTS MEASUREMENT FOCUS - ECONOMIC RESOURCES ACCRUAL BASIS OF ACCOUNTING MONTH ENDING MARCH 31, 2014 BALANCE SHEET ASSETS CHECKING ACCOUNT FNB CERTIFICATE OF DEPOSIT CITIZEN'S CERTIFICATE OF DEPOSIT FNB CONSTRUCTION ACCOUNT PNC OPERATING ACCOUNT PNC CONSTRUCTION ACCOUNT BBVA-ACADEMY MONEY MARKET BBVA-ACADEMY CONSTR ACCOUNT FAA PROJECT LAND AND CONSTRUCTION IN PROGRESS CAPITAL IMPROVEMENTS ACCUMULATED DEPRECIATION DEFERRED EXPENSE - BOND ISSUE TOTAL ASSETS LIABILITIES 2010 PNC LOAN-DEFEASE 2007 ALLIED IRISH LETTER OF CREDIT DEFERRED INFLOWS OF RESOURCES SERVICE CONCESSION ARRANGEMENT REVENUE APPLICABLE TO FUTURE YEARS NET POSITION RETAINED EARNINGS INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT NET EARNINGS TOTAL LIABILITIES AND CAPITALIZATION INCOME STATEMENT REVENUES FUEL SALES CITY OF FAIRHOPE APPROPRIATION T HANGER RENT BIG HANGER RENT OFFICE RENT FAIRHOPE AIRPORT ACADEMY LOC INTEREST INCOME FAA GRANT EXPENSES INSURANCE PROPERTY TAX TRAVEL/DUES/MEETINGS BANK FEES LEGAL PROFESSIONAL SERVICES OFFICE AND GENERAL SUPPLIES MAINTENANCE EQUIPMENT MAINTENANCE FAIRHOPE AIRPORT ACADEMY EXPENSE MISCELLANEOUS INTEREST EXPENSE ELECTRICITY TOTAL REVENUES CURRENT MONTH 36,916.67 5,440.00 7,350.00 ENDING BALANCE 103,336.06 109, 959.69 193,416.21 177, 382.08 1,548,680.79 253, 592.13 170.00 11, 061, 874.46 14,652,727.96 (3,121,495.70) 23,231.00 25,002,874.68 8,440,000.00 2,700,000.00 2,160,670.43 12,254,440.43 (552,236.18) 25,002,874.68 YEAR TO DATE 3,927.08 221,500.02 30,261.90 1,146.60 44,100.00 161.06 8,651.76 6,215.00 49,867.73 315,802.36 13,070.00 13,070.00 - 928.80 74.94 452.84 1,500.00 9,000.00 - 41,142.09 104.79 594.04 508.32 15, 803.02 72,691.32 714,573.27 10,930.34 66,110.33 813.87 6,364.15 TOTAL EXPENSES 99,693.58 868,038.54 NET EARNINGS (49,825.85) (552,236.18) Jill Cabaniss, Finance Director 5/2/2014 CITY OF FAIRHOPE AIRPORT AUTHORITY GOVERNMENTAL FUNDS FINANCIAL STATEMENTS MEASUREMENT FOCUS- CURRENT FINANCIAL RESOURCES MODIFIED ACCRUAL BASIS OF ACCOUNTING MONTH ENDING MARCH 31, 2014 BALANCE SHEET ASSETS CHECKING ACCOUNT FNB CERTIFICATE OF DEPOSIT CITIZEN'S CERTIFICATE OF DEPOSIT FNB CONSTRUCTION ACCOUNT PNC OPERATING ACCOUNT PNC CONSTRUCTION ACCOUNT BBVA-ACADEMY MONEY MARKET BBVA-ACADEMY CONSTR ACCOUNT FAA PROJECT TOTALASSETS LIABILITIES DEFERRED RENT FUND BALANCE AND NET EARNINGS FUND BALANCE NET EARNINGS TOTAL LIABILITIES AND NET EARNINGS INCOME STATEMENT REVENUES FUEL SALES CITY OF FAIRHOPE APPROPRIATION T HANGER RENT BIG HANGER RENT OFFICE RENT FAIRHOPE AIRPORT ACADEMY LOC INTEREST INCOME FAA GRANT EXPENSES INSURANCE PROPERTY TAX TRAVEL/DUES/MEETINGS BANK FEES LEGAL PROFESSIONAL SERVICES OFFICE AND GENERAL SUPPLIES MAINTENANCE EQUIPMENT MAINTENANCE FAIRHOPE AIRPORT ACADEMY EXPENSE MISCELLANEOUS INTEREST EXPENSE BOND ISSUE EXPENSE ELECTRICITY CAPITAL PURCHASES -LAND CAPITAL IMPROVEMENTS DEBT SERVICE -INTEREST DEBT SERVICE -PRINCIPAL PAYMENT TOTALREVENUES CURRENT MONTH ENDING BALANCE 103, 336.06 109, 959.69 193,416.21 177, 382.08 1,548,680.79 253, 592.13 170.00 2,386,536.96 2,700,000.00 705, 896.91 (1,019,359.95) 2,386,536.96 YEAR TO DATE - 3,927.08 36,916.67 221,500.02 5,440.00 30,261.90 - 1,146.60 7,350.00 44,100.00 161.06 8,651.76 - 6,215.00 49,867.73 315,802.36 13,070.00 13,070.00 - 928.80 74.94 452.84 1,500.00 9,000.00 - 41,142.09 104.79 594.04 508.32 15, 803.02 72,691.32 714,573.27 813.87 6,364.15 40,542.00 212,123.77 10,930.34 66,110.33 255,000.00 255,000.00 TOTAL EXPENSES 395,235.58 1,335,162.31 NET EARNINGS (345,367.85) (1,019,359.95) ADJUSTMENT OF NET EARNINGS TO NET CASH FLOW Net Earnings for the month ended March 31, 2014, before adjustment $ (345,367.85) (1,019,359.95) Adjustment for expenditures related to Airport Academy 72,691.32 714,573.27 Adjustment for expenditures related to the use of the Airport's line of credit - - Net cash flow for the month ended March 31, 2014 $ (272,676.53) $ (304,786.68) Jill Cabaniss, Finance Director 5/2/2014