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Home My WebLink About05-20-2014 Regular MeetingMinutes of the Fairhope Airport Authority May 20, 2014 The Fairhope Airport Authority met Tuesday, May 20, 2014 at 4:30pm in the Civic Center Auditorium, 161 N Section Street. Present: Charles Zunk, Chairman; other members present: Charlie Bassett, Jack Burrell, Pamela Caudill, Joe McEnerney, and Rod Platt. Absent was Howard Hadley. Present also was David Bagwell, Attorney, and Bill Ross of Continental Motors. Cynthia Boothe took the minutes. The minutes of the April 15, 2014 meeting were considered and approved on a motion by Charlie Bassett, second by Pam Caudill, and unanimously carried. Update on "The Academy at Fairhope" — Charlie Bassett provided an update to the group, stating that he had contacted both community colleges and the school board about their needs and when they have equipment coming in and how much time it will take them to have it assembled and installed. He also stated that despite previous construction delays, mostly weather related, that they should still be able to open in time for the fall semester of school. Charles Zunk went over the progress and stages of the different elements of the construction project. Discussion of FY2014 AIP Grant — Charles Zunk stated that he expected to get the final approval letter for the grant in the next 30 days so that construction can begin on the east side project. He also stated that he had not yet met with Volkert to see if some of the funds will be needed to go toward drainage work but that most of the funds will be used for the dirt work on the east side. The Federal Aviation Administration will contribute $1,080,000.00 (90%), the State of Alabama Department of Transportation will contribute $60,000.00 (5%), and the Fairhope Airport Authority will provide $60,000.00 (5%) for a total of $1,200,000.00 for the project. Discussion of drainage improvement plan — Charles Zunk stated that Volkert has assessed the drainage and there will be a meeting within the next two weeks to discuss their recommendations on the drainage redesign and any enlargements and improvements needed. There are some immediate concerns due to obvious erosion but that during the most recent rain event everything functioned as it was designed. Resolution to approve 4-15-2014 draft of Minimum Standards — The document was considered with Charles Zunk stating that no changes were made to the draft. There was a motion to approve the Minimum Standards by Jack Burrell, second by Pam Caudill, and unanimously carried. Discussion of RFP for FBO lease — Charles Zunk stated that now that the Minimum Standards are in place it is time to start work on the RFP for the FBO lease. Once the RFP is completed it will be issued for bids. He also asked Rod Platt to begin working on the RFP. Discussion of conservation easement — Rod Platt stated that after a second meeting with all the parties involved the Corp of Engineers accepted the conservation easement for mitigation. He also stated that documents should arrive soon so that the easement project could soon be underway and he will be able to report back by the next meeting. Resolution to approve 4-15-2014 draft of Safety and Security Plan — Pam Caudill stated that after making a few minor changes that the plan is completed and Charles Zunk stated that Pam will be in charge of distribution. A motion was made for approval by Jack Burrell, second by Rod Platt, and unanimously carried. Treasurer's report —Joe McEnerney went over the Treasurer's Report stating that it was correct and that $910,178.19 YTD has been spent on the Academy construction project. He also stated that at the year ending September 30, 2014 that all of these expenses will be capitalized. New Business — Bill Ross of Continental Motors stated that on Saturday, May 24, 2014, that Continental Motors and Zulu Flight Training will be holding a "Learn to Fly" day from 9:OOam to 4:OOpm at the airport. He also stated that he has over 50 volunteers from Continental Motors to help with the event and that there has been good media coverage to help advertise and some national attention as well. The event is designed to promote general aviation and careers in aviation and Bill told of his own personal start in an aviation career and how it had changed his direction in life. The group discussed the possibility of incorporating the next Festival of Flight with the Learn to Fly Day next year in order to have even more activities and information available as well as possible military involvement with aircraft displays and demonstrations. There being no further business, the meeting was adjou ned at 5:05pm. C )k CITY OF FAIRHOPE AIRPORT AUTHORITY GOVERNMENTWIDE FINANCIAL STATEMENTS MEASUREMENT FOCUS - ECONOMIC RESOURCES ACCRUAL BASIS OF ACCOUNTING MONTH ENDING APRIL 30, 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 CURRENT MONTH REVENUES FUEL SALES 646.56 CITY OF FAIRHOPE APPROPRIATION 36,916.67 T HANGER RENT 5,303.30 BIG HANGER RENT - OFFICE RENT 7,350.00 FAIRHOPE AIRPORT ACADEMY LOC - INTEREST INCOME 140.75 FAA GRANT TOTAL REVENUES 50,357.28 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 16,086.00 2,359.64 65.96 1,500.00 5,161.25 104.71 10,175.57 195,604.92 ENDING BALANCE 103,358.03 109, 973.25 201,461.54 108,010.66 1,248,786.01 357,987.21 170.00 11,061,874.46 14,717,458.96 (3,121,495.70) 23,231.00 24,810,815.42 8,440,000.00 2,700,000.00 2,160,670.43 12,254,440.43 (744,295.44) 24, 810, 815.42 YEAR TO DATE 4,573.64 258,416.69 35, 565.20 1,146.60 51,450.00 8,792.51 6,215.00 366,159.64 29,156.00 3,288.44 518.80 10,500.00 46, 303.34 698.75 25,978.59 910,178.19 10,581.65 76,691.98 776.84 7,140.99 TOTAL EXPENSES 242,416.54 1,110,455.08 NET EARNINGS (192,059.26) (744,295.44) Jill Cabaniss, Finance Director 7/7/2014 CITY OF FAIRHOPE AIRPORT AUTHORITY GOVERNMENTAL FUNDS FINANCIAL STATEMENTS MEASUREMENT FOCUS - CURRENT FINANCIAL RESOURCES MODIFIED ACCRUAL BASIS OF ACCOUNTING MONTH ENDING APRIL 30, 2014 BALANCE SHEET ENDING BALANCE ASSETS CHECKING ACCOUNT _ FNB CERTIFICATE OF DEPOSIT - CITIZEN'S CERTIFICATE OF DEPOSIT 103,358.03 FNB CONSTRUCTION ACCOUNT 109,973.25 PNC OPERATING ACCOUNT 201,461.54 PNC CONSTRUCTION ACCOUNT 108,010.66 BBVA-ACADEMY MONEY MARKET 1,248,786.01 BBVA-ACADEMY CONSTR ACCOUNT 357,987.21 FAA PROJECT 170.00 TOTAL ASSETS 2,129,746.70 LIABILITIES DEFERRED RENT 2,700,000.00 FUND BALANCE AND NET EARNINGS FUND BALANCE 705,896.91 NET EARNINGS (1,276,150.21) TOTAL LIABILITIES AND NET EARNINGS 2,129,746.70 INCOME STATEMENT CURRENT MONTH YEAR TO DATE REVENUES FUEL SALES 646.56 4,573.64 CITY OF FAIRHOPE APPROPRIATION 36,916.67 258,416.69 T HANGER RENT 5,303.30 35,565.20 BIG HANGER RENT - 1,146.60 OFFICE RENT 7,350.00 51,450.00 FAIRHOPE AIRPORT ACADEMY LOC - - INTEREST INCOME 140.75 8,792.51 FAA GRANT - 6,215.00 TOTAL REVENUES 50,357.28 366,159.64 EXPENSES INSURANCE 16,086.00 29,156.00 PROPERTY TAX - - TRAVEL/DUES/MEETINGS 2,359.64 3,288.44 BANK FEES 65.96 518.80 LEGAL 1,500.00 10,500.00 PROFESSIONAL SERVICES 5,161.25 46,303.34 OFFICE AND GENERAL 104.71 698.75 SUPPLIES - - MAINTENANCE 10,175.57 25,978.59 EQUIPMENT MAINTENANCE - - FAIRHOPE AIRPORT ACADEMY EXPENSE 195,604.92 910,178.19 MISCELLANEOUS - - INTEREST EXPENSE BOND ISSUE EXPENSE - - ELECTRICITY 776.84 7,140.99 CAPITAL PURCHASES -LAND CAPITAL IMPROVEMENTS 64,731.00 276,854.77 DEBT SERVICE -INTEREST 10,581.65 76,691.98 DEBT SERVICE -PRINCIPAL PAYMENT - 255,000.00 TOTAL EXPENSES 307,147.54 1,642,309.85 NET EARNINGS (256,790.26) (1,276,150.21) ADJUSTMENT OF NET EARNINGS TO NET CASH FLOW Net Earnings for the month ended April 30, 2014, before adjustment $ (256,790.26) (1,276,150.21) Adjustment for expenditures related to Airport Academy 195,604.92 910,178.19 Adjustment for expenditures related to the use of the Airport's line of credit - - Net cash flow for the month ended April 30, 2014 $ (61,185.34) $ (365,972.02) Jill Cabaniss, Finance Director 7/7/2014