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HomeMy WebLinkAbout2011-07-27 Airport Committee Minutes �N� � Meeting Agenda City of Bangar Airpart Cammuttee Meeting City Council Chambers 3`a Floor July 27, 2011 5:00 IPM The fallc�wing City cauncilors were in attendance: Gerry Palrro�er, Richard Bronson, Cary Weston, and Pat Blanchette. Th�fallawing Cit}r staff were also in attendar�ce,Airport Directar, Rebecca Hupp, and Marketing Manager Risteen Bahr. The City Manager, Cathy Conlow was a�so in attendance, Councilar Palmer opened the meeting. Agenda; 1. Indu�stry Update/Overview and Passenger Statistics�'or June. Airpart Dire�ctor Rebecca Hupp indicated that the FAA was shut davvn due to the Senate and House not passing an interim Continuing Resolution to fund the agency. The Airpart is nat doing majar canstructian on th� General Aviation parkirng area due ta the uncertainty of funding. This faur million dollar praject is pastpaned until next year. Another undustry development is that Exxon NVlabil is naw exiting th� aviatian retail fuel buspness amd will no langer lae affering fixed based aperatians.The Airpc�rt is in the finaf year of the three year cantract�n,rith Western Petraleum ta offer ExxanMobil branded fuel. Finally, U.S. Airways and Delta are proposing to swap "slots" or landing rwghts far bC and JFK, which means Bangor cc�uQd potentially�et direct air service ta Washington, DC.�'his Airport Marketing Manager, Risteen Bahr indicated that both the monthly and yearly load factors for airlines serving the �GI� market are s�rong. June laad factars were strang, but decreased slightly campared to last J�ane however, total enplane�nents were up fcrr�he year. Questions/Comments Cotancilo�- Bronsc�� asked why the passenger numbers for Allegiant Air are davvn this month. Bahr responded that part of the month af May and June, Allegiant Air stapped flights for rautine maintenance. 2. Busin�ss Gevelapment Activities a. Airports Council Inte�n�tic�nal Airport Air 5�rvice Clevelapment Canference Market�ng Manager Bahr reparted that she attended Airport Cou�rcil Internationa�— Narth America's "Jumpstart" air service development and rr�arketing conference held in June in Cleveland, aH.At the cc�nference she had several meetings with airl6nes ar�d made presentatians to C►elta,JetBlue, Southwest, United, an�d USAirways regarding service appartunities in Bangor. The Airport will continue to make t'�e business case ta airlines that they should introd�uce,/expand service ta the Bangor market and that it will be profuta�le for them. b. Airpart Custc�mer Forurm x Airport pirector Hupp reparted that the BGR's 3`d Annual Custarner F�rum was a great success.The Airpart partnered with the Airpor'ts catering campany, News and Gift concessionaire, the Sher�tan, the Haliday Inn, the Air National Gu�rd and Irving ta host the three day event. There wec�e c�ver 20 attendees and the Airport received very positeve comrrrents about the pragram agenda and the ewent venues. Copies the guests' camments were pravided ta the Committee members and are attached to these minutes�ar the reccrrd. 3. Review af Airport Serv�ce Incentive Pragrann Airport Directar, Rebecca Hupp discussed the Air Service incent�ve program, The purpase af this pragram is to attract, develop and maintaiu� such air transpQrtation services as are sustainable by the regian in arder ta facilitate and stimulate tk�e levels of ecanomic and cammunity deueloprnent targeted by the City of Bangor, The pragram has two dis�inct companen#s: a 8anding fee credit-ta encr�ura�e flights fram BGR to new destinations, and a marketing incentive-for additianal flights fram BGR to new ar existir�g destinations, To qualify far participa�ion im the pragram,�he fcellawing canditians apply:far the landing fee credit, the Airline must operate the raute year-raund ta a new destinatian airpart, only new destinations qualify for the credit and only ane annual credit exists for eacl� new destinatian,The c�rriers must operate the route for a mininnum af one (1)year. Ea�h airline must have a minimum of twa (2) weekly departures to the destination airpc,rt. Requirements for the Mark�ting Incentive are the qualifying airline must initiate a new route from BGR to a destinatian airport or a new nan-stop flight ta existing destinat�on airports, The rc�ute must be aperated far a mi'nimum c�f one (1) year and a minimum of twa (2)weekly departures ta the destinatir�n airport are required, We recammend that the Camrnittee refer this policy go to full Cauncil far approval. Questior�sJ�ommer�ts Councilar Blanchette asked' what dollar amaunt you are talking about. Hupp responded that$60,OOq is amaunt far the mam�keting incerrtiv�, and the landing fee credit is based on the aircraft size/we�ght. Councilar Blanchette matianed that this go ta full council�ar approval and Cauncilor Bronson seconded it. 4. Progress Report an Airport�ueling Contract Airport Directc�r, Rebecca Hupp discussed the Airport fueling c�nta-act, The Airpart awns and aperates the fuel farm7 and provides fueling and ather graund handling services to the aircraft using BGR. Almost twa years ago, the Airport transiticsned fram a long term,thirty plus years, exclusive agreemer�t with ExxanMobil to an open access fuel farm model. Under the open access supply model, the Airport has contr�cted with Orving Oil ta provide fuel to the Airpc�rt's direct and retail customers and to transit custamers that da not rautinely ut�lize Bangar�nd th�erefare da not want to maintain fuel inv�ntr�ry at the Airport. �GR's commercial tenants and regular custc�mers have the aptian of selecting the fuel providi'er of their chaice and holding their own inventary in BG�'s fuel tanks. Eac�r of these customers has also selected tc� cantract with Irving fa�their fuel supply. One categary af custora�rer is referred ta as "Contract Custamers", 1'hese c�astomers purchase fuel directly fram Irving. There are three retail accaunts; they are City Mark, Departrnent af Defense and Retail. The City Mark customers use a fiuel broker whc� negoti�tes a fuel �price and direct handling costs with Bangor on their behalf. Tbe airport also sells directly to#he Department of Defense under a Platts+cantra�ct rrumber, The final customer . � category is retail. These customers purchase their fuel directly from the Airport based an the pasted price. The Irving cc�ntract was signed an September 1, 2009 and is in effect for a three year term, ending an August 31, 2012. Due ta ta�Cing an the additianal Fuel Farm operating expenses, the expense related to parts far trucks and the additianal cost af Pollutian/Environmental insurance that was previously absprbed by Exxon, Airport operating expenses have increased approximately$220K per year. Additionally,the Airport had initial capital autlays totaling$1,100,000 to pu�rchase the fuel trucks and system related items (hydrants, ect,) T�ese eosts have been more than offset by the increase in revenue related ta the fuel starage fees. The Airpc�rt anticipates a payback on initiai autlays and increased aperating expenses will be between 2.5-5 years, depec�ding on the tatal volume of fuel sold. Questians/Camments Councilor Bronsan commented that with ExxanMobil getting out of the Business, we were smart in getting out of their service. S, Discussian regarding Rental of Hangars to nan-prafit groups for special events Airport Director, Rebecca Hupp discussed the use af hangars at the Airport. Since Bass Park is the designated city-awned venue for events and prowidi�ng event space is ncat ccrre t� the AirparYs mission and since th� City Council's general pasition is that City pepartments shauld not campete vvith the private sectar, the Airport has declined reque�ts ta use hangar space for special events. In �dditiorr to the reasnns stated �krove, the Airport is mat equipped to handle special events. There are a number af logistical, security arnd operatianal issues that mak�the use of airport space less than ideal far hostin�g specia�l evemts, Most imperrtantly, the Hangars have direct, unsecured, access to our aircraft aperating area and this area� is considered ta be security and safety sensitive. Any special event in this area would require us to arrren�d our Airport Security Plan and �he amendment would be subject�o approval by the Transpartatian 5ecurity qdmiraistratian.Anyone who has access ta this area has ta have either an Airport 8D Badge or be escorted by sameone who has a badge. Also there are operatianal constraints ta using the space for special events such as a lack af restraoms and in�ufficient parking. During the lat�fall, winter and early spring, ther� is the additional consideratian that the Hangars are heated only to 60 degrees and snow removal may also be an assu�e. Thece is also always the pat�n�ial that the Hangar will be needed ta stare aircraft or other ground handling equipment. The Airpart did allow Fusion Bangar to hast their annual event in a hangar im�cterber 2008�s a trail but this event canfirmed our cancerns regarding the security and Ic�gistical limitations o fuse of Hangar Facilities for special even�s. Committee �nembers agreed with and endarsed the Airport's pasitic�n regarding renting hangar space ta groups far special events. A 6. Airpart Impror✓erne�nt�Pragram-Request#o Accept and Appropriate Grant#S2 General Aviation Aircraft P"arking Apron Design and Request far authorizatian to apply for AIP Gran�#54 Replace Airfueld Signuage, Airpart Director, Rebecca Hupp discussed that each year Bangor International airpart receives federal funding for capital impravement projects through the FAA Airpart Improvement Program (AIP). Since the FAA has been aperating under a continuin� resalution, fundin� has be�n av�rarded in increments ranher than in a lump sum as normally is the pracedure. The Airport is requesting approval ta accept and apprapriate an additianal award of grant funding far AIP Grant#52 in th� amount af$807,596 from the Federal Auiation Administratiar� and $21,252 from the Maine IDepartment af Transpartatian. The funding far this gra�nt will be used to complete the engineering design wark far the G�neral Aviatian Aircraft Parking Apron. This grant will furrd 95%af the project with the remaining 5Cp being split between the Airpart and the State. Airport staff respectfully requests the Airport Cornmittee recc�mmend the City Council authorize the Airport to accept and apprapriate this grant. In additAan, the Airpart requests autharization to apply for, accept and apprapriate up ta $700,p00 in grant funds from the FAA t4 replace the Airfield Signage. The currerut airfield signage is beginning ta show signs of wear and tear. In additi�rn, by replacing all the signs, the Airpart will be able to transitian ta LED lighted signs and they wili ald be by the same manufacturer thus simplifying maintenance and pa�rts invent�ry. This item vvas n�ted by the FAA inspector crn the annual FAA Part 139 inspection and she recommended this caurse af action, The grant will fund 95%c�f the praject with the remainung 5% being split betweem fihe Airport and the State, Airport staff respectfully requests tlhe Airpart Cammittee recommend the City Council authorize the Ai�rpart to apply fac and accept and appropriate this grant. Na Questians or Camments Cauncilrar Bransan made the motian and Cc,uncilcrr Blanchette secanded i�. .Meeting adjaurned.