Florence Regional Airport
Pee Dee Regional Airport Authority
January 21, 2015
MEMBERS PRESENT:
Mr. Norwood Bonnoitt
Mr. Leroy Edwards
Mr. Glenn Green
Mr. Toy Nettles
Mr. Tommy Parham
Mr. Frank Rogers
Mr. Willie Smith
MEMBERS ABSENT:
Mr. Pete Gioldasis
Mr. Joseph Powell
Also present was Mr. Chuck Henderson, Airport Director and Airport Staff Members Connie Anderson, John Ferguson, Marshell Johnson and Stephen Bailey.
There were three guests, Mr. Phil Brown with Avcon Airport Engineering, Dennis Wiehl with Mead & Hunt and Ken Hawk with W.K Dickson in attendance.
There was no media present at the meeting.
The meeting was called to order at 5:00 PM by Chairman Bonnoitt in the Airport Conference Room, 2100 Terminal Drive, Florence, SC. The media was notified in accordance with 30-4-80.
The Invocation was given by Rev. Leroy Edwards.
On a motion by Mr. Green and second by Mr. Nettles, the minutes of the December 17, 2014 meeting were approved as previously emailed.
COMMITTEE REPORTS:
ADMINISTRATIVE AND FINANCE COMMITTEE REPORT: Mr. Powell
Connie Anderson reported in Mr. Powell’s absence.
Connie Anderson stated she is pleased to announce that the transition into the QuickBooks Accounting Program is now complete and all financial information is current. She referred the Airport Authority to the November ’14 and December ’14 Financials that were previously emailed and provided in their notebooks. She commented November’s format looks a little different than December’s simply because she wanted to show the options in which the information can be presented. She stated January’s Financials may look different because it will include the new January 1-December 31 Budget. She stated unless otherwise requested, she will continue to provide the printed FLO Sheet Summary for their notebooks and submit the detailed Financials electronically.
In summary, Mrs. Anderson reported the November Total Income was $253,255.96. She reported the Cost of Goods Sold, which are FBO Expenses was $75,686.80. In January, the Cost of Goods Sold will be broken back out into Jet A Expense, 100 LL Expense, and Parts & Oil Expenses. She reported the Total Expense for November was $183,356.70. The Net Income was -$5,787.54.
In December, the Total Income was $233,863.32. The Cost of Goods Sold (FBO Expense) was $66,914.27. The Total Expense was $176,253.78. Net Income was -$9,304.73.
Connie Anderson commented that fuel sales, labor and Parking Revenues were all down. She stated parking revenue was consistently down in November. She stated from November to December it was down about $6,000. She reported some expenses that were incurred included repairs to terminal doors, computer expenses and utility bills. She stated however, the biggest expenses incurred in December were repairs to the rental car wash equipment, parking lot equipment, payment to the Northeastern Strategic Alliance for the study of the Industrial Park, and payment for the new telephones and equipment. She commented, after all of the expenses, we are still on the positive side.
Connie stated the information reported on the Financial Statements is based on the most recent information she receives, but there may be other information, from the rental car agencies that may come in after the financial statements are presented. In such cases, she may report an estimated figure based on historical data and will report the true number once it is received.
Finally, Mrs. Anderson stated the Airport Authority meeting date could possibly be changed back to the 2nd Wednesday of each month. She stated Debbie Osterberg says the financials can be done within a week after the close of the month. Connie reported we should start to see PFC funds coming in and begin an update on PFC Funding projects.
After some discussion, Chairman Bonnoitt asked that a monthly comparison of the prior year’s Revenue and Expenses be included in the Financial Report.
Chuck Henderson reported he has a proposal for the 2014 Audit. The audit is still being reviewed and once we get a favorable review of the proposal he will advise the Authority that we will began using the new Auditor to prepare the 18 month Audit reporting period from July 1, 2013 through December 31, 2014.
Chuck Henderson asked Marshell Johnson to update the Airport Authority on the draft of the Employee Handbook and the Amendments adopted to the Bylaws.
Marshell Johnson reported that at the request of the Airport Authority, the draft of the Employee Handbook has been submitted to Linda Edwards, a Labor Attorney for a legal review. She stated Mrs. Edwards was referred to us through the Airport’s Attorney, Joe McLean. Marshell reported that once Mrs. Edwards’ review of the handbook is complete, she will send a copy to the Authority Member for review and then we will distribute to the employees.
Marshell reported we are working on getting the Bylaws into an electronic version to make revisions and amendments to the document easier. She reported this process will be completed by next meeting and she will email a copy of the amended Bylaws reflecting the latest motions passed to the Authority for review.
AIR SERVICE COMMITTEE REPORT: Mr. Gioldasis
Chuck Henderson reported in Mr. Gioldasis’ absence.
He stated in his Director’s Report last week, he included a table showing some general airline metrics of competitive markets in the region. The table shows information on the populations in the areas, the air service carriers serving those area airports and the year ending cancellation figures for FY July ’13 – June ‘14. He reported if a carrier makes less than $20 million in Gross Revenue, they are not required to report cancellation rates. He stated Piedmont does not meet the threshold, so it is not reported for our airport. He stated, however, we are able calculate our rate and it is reported on the monthly FLO Sheet.
Mr. Henderson reported one initiative the Authority previously discussed was the idea of bringing in an Air Service Consultant to assess the market and give us suggestions and guidance with our Air Service Development. He stated that he and Mr. Gioldasis have communicated via email about the idea of the Airport Authority forming a subcommittee of 3-5 individuals to consider selecting an Air Service Consultant to look at the service market in Florence. He stated there are a number of firms that could do an assessment and the subcommittee could consider putting out an RFP for consulting service. They would receive proposals and a statement of qualification from the firms and interview them to see which might be the best for the Airport.
Chairman Bonnoitt asked if there were any Authority Members present who would volunteer to serve on the Air Service Subcommittee under the guidance and leadership of Mr. Gioldasis.
Mr. Willie Smith and Mr. Frank Rogers volunteered to serve on the subcommittee.
PROPERTIES AND PROJECTS COMMITTEE REPORT: Mr. Nettles
Mr. Nettles referred his report to Chuck Henderson.
Mr. Henderson commented the current projects underway are going well. He stated the Restroom Renovation project is generally on budget and schedule as are the Airfield Projects.
Mr. Henderson reported that he received bids for the rental car counter renovations. The bids were a bit higher than he was comfortable with. He explained that our reserves in the CFC Account is about $150k and we are putting an additional $7k-$11k per month into the account after we pay debt service. He stated if the bids come in at about $170k, we would be more comfortable executing a contact with the low bidder. He opted to meet with the Architect to refine the drawings and to re-advertise to get new bids. He stated if the new bids also come in high, he will then meet with the lowest bidder and see where additional cuts can be made. He stated he expects bids will be in by the end of the month or early February and then be ready to move forward with the project.
Finally, Mr. Henderson reported that we will need to issue some RFP’s for consulting services on several upcoming projects. He stated in the budget presented to them in December, a 5 Year Capital Improvement Program list of projects was included. He stated next year there are plans to design a new Fire Station, replace some perimeter security fencing and the Northside service road on the west side of the airfield. He stated we will begin issuing RFPs for Engineering service for the design of those projects. He stated he will keep the Authority updated as we move forward.
FBO COMMITTEE REPORT: Mr. Edwards
Mr. Edwards referred his report to John Ferguson.
John Ferguson reported that he has contacted several airports for a comparison of hangar rates including Marion County, whose rate is $110 per month and John’s Island Airport, whose hangar rate is $400 per month. He stated on average most airport hangar rates range from $230 - $250 per month. He suggested that we should increase our rates 4%-5% each year until our rates are comparable with other airports. He reported the airport has not increased its hangar rates in the past few years. He stated the current rate for the large hangar is $430 per month and feels that rate is where is should be. The smaller T-hangars currently lease for $200 per month. He feels this rate is a little low and could be increased slowly to gain more revenue for the Airport.
Mr. Ferguson referred the Authority to the Avgas and Jet A Fuels Sales, Labor Revenue and Labor Hours Charts inside their notebooks. He stated all of the charts reflect a calendar year comparison so they can better see how we are doing. He reported things have been slow lately because of rain and weather conditions over the past several months. He stated fuel and maintenance sales have been affected because not many people are flying. He expects to see things picking up in March.
Mr. Ferguson reported there are a few events coming up at the FBO; He stated about 300 Soldiers with the National Guard will be here in March for an exercise and the Department of Energy will stage in an event in July. He stated they are continuing the cleanup project at the FBO. They will now continue painting the offices and upgrading the amenities inside the facilities.
Finally, he reported the Tree Cutting project has been at a standstill, mainly because of the rain over the past few months. He stated the contractor has experienced several equipment failures and has had to purchase new equipment. The contractor is waiting for his new equipment to arrive. Once the new equipment is in and there is drier weather, the project will resume. He stated we have received a Preliminary payment of $16,000 for chip wood the company processed for us.
EXECUTIVE DIRECTORS REPORT: Mr. Henderson
Chuck Henderson introduced Stephen Bailey, the Airport’s New Chief of Public Safety to the Airport Authority.
Chuck Henderson reemphasized that he wants to make sure the Authority is getting the information they need and want to see. He asked the Authority to please let him know if there is anything we can do differently to ensure they are getting the appropriate information in a timely manner.
Chuck Henderson stated in his Director’s Report, he raised the issue of the Per Capita Funds. He stated an increase in Per Capita Funds is a topic we may need to discuss in the future as these funds are very important to the Airport.
OLD BUSINESS:
None.
NEW BUSINESS:
None
ADJOURNMENT:
There being no further business, the Pee Dee Regional Airport Authority adjourned at 5:35 PM.
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