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HomeMy WebLinkAboutMinutes - Minutes - Aviation Advisory Commission - Meeting Date: 12/14/2011 MINUTES AVIATION ADVISORY COMMISSION GLENDALE MUNICIPAL AIRPORT 6801 N GLEN HARBOR BLVD - SUITE 201 GLENDALE,ARIZONA 85307 AIRPORT CONFERENCE ROOM DECEMBER 14,2011 7:00 P.M. I. CALL TO ORDER The meeting was called to order by Chair Ron Cohoe with the following Commissioners present: Vice-Chair Carl Duggins, Victoria Rogen, Leslie Sheeler, Joe Cable, Walt Chaney and Robert Irons. Also present were Walter Fix, Interim Airport Manager; Jamsheed Mehta, City of Glendale Executive Director of Transportation Services; Bill Gillies, Luke Air Force Base; Clare Pryke, Glendale Airport Hangars; Tito Suazo, Aerosim Aviation; Carl Brandenburg, Glendale Aero Services; Brett Cramer, Airport Volunteer; Bill Kelly, former Aviation Advisory Commissioner II. APPROVAL OF MINUTES OF THE PREVIOUS MEETING Commissioner Irons motioned to approve the November 9, 2011 meeting minutes as written. Commissioner Sheeler made the second. The motion passed 6- 0. [Commissioner Cable was not in attendance yet.] III. REQUEST FOR CONTINUANCE OR WITHDRAWL OF ITEMS [Commissioner Cable entered the meeting.] Mr. Fix announced that Mr. Zamenski, the proprietor of the new Airport restaurant Left Seat West at Glendale, was unable to attend the meeting this evening,but Mr. Fix would still provide an update on the restaurant as called for under Airport Business in the agenda. IV. AIRPORT BUSINESS The following items were addressed. 1. New Commissioner&Loyalty Oaths Chair Cohoe introduced new Commissioner Chaney. Commissioner Chaney gave a brief background of himself. Chair Cohoe and Commissioners Chaney and Duggins signed their Commissioner Loyalty Oaths. 1 2. Plaque Acknowledgement Chair Cohoe acknowledged former Commissioner Bill Kelly's service during 2006 - 2011 on the Aviation Advisory Commission. Chair Cohoe thanked former Commissioner Kelly for his dedication to the Commission, the Airport and the City of Glendale and wished him well in future endeavors. 3. Update on FAA and the Corrective Action Plan Mr. Fix provided an update on the FAA and the Corrective Action Plan (CAP), which included the following highlights: • A follow-up letter will be sent to any hangar occupants still in non- compliance with a deadline of December 16th for these occupants to contact the Airport Administration regarding a follow-up inspection. • December 31st is the deadline for resolution of all non-compliance issues. • Some occupants have required more time for resolution of non- compliance issues as they are out of state or out of the country. • The Airport is on track with the CAP deadlines and requirements. • In early 2012, a Random Inspection Program will be formulated as well as new Airport Rules and Regulations and Minimum Operating Standards, which will include an Airport Leasing Policy. Chair Cohoe inquired as to how many occupants were still in non-compliance. Mr. Fix explained that out of a revised total of 109 occupants in non-compliance, 54 have been re-inspected and are now in compliance. Mr. Fix anticipated that this week there would be quite a few occupants signing up for re-inspection. Chair Cohoe wondered if the occupants would be fined if they were not in compliance by December 31, 2011. Mr. Fix replied in the negative and added that the FAA has been very receptive to the inspection schedule and the challenges of the Airport, especially with occupants based out-of-state. Mr. Fix noted that the FAA has not imposed any grant restrictions and in fact, there is a grant underway currently. 4. Update on Restaurant Mr. Fix again stated that Mr. Zamenski, the proprietor of the new Airport restaurant Left Seat West at Glendale, was unable to attend the meeting this evening. Mr. Fix stated that the new proprietor has moved in furniture from the Sky Harbor restaurant location to the Glendale Airport location. Mr. Fix noted that the original restaurant tables and chairs were stored away. Mr. Fix announced that January 2, 2012 is the scheduled grand opening of the restaurant and there would be a Health Department inspection tomorrow, 2 December 15th. Mr. Fix explained that the Maricopa County Health Department did come out a few weeks ago to inspect the facility and there were a few issues to be resolved, which is the reason for the follow-up inspection tomorrow. Chair Cohoe asked if there would be signage for the restaurant on Glendale Avenue and Mr. Fix replied in the positive. Chair Cohoe asked if announcements regarding the restaurant would be posted in the District Newsletters and Mr. Fix stated that announcements will be placed in all applicable and relevant media channels. 5. Presentation on Determining Fuel Prices Mr. Fix introduced Mr. Brandenburg of Glendale Aero Services, the Airport FBO, who was in attendance to present information to the Commissioners regarding the determination of local fuel prices. Mr. Brandenburg gave a presentation to the Commission which included the following highlights: • There are two different fuel products sold by the FBO: 100 Low Lead fuel (100 Octane) and Jet A (a kerosene-based fuel) • More Jet A fuel is sold both at the Glendale Airport and nationally than 100 Low Lead. • Jet A fuel is transported by pipeline, while the 100 Low Lead fuel is shipped by railcar due to delivery restrictions. • Currently, the cost of Jet A fuel is 2.5 times higher than in 2009 and the cost of 100 Low Lead is 1.7 times higher than in 2009. • Jet A fuel follows crude prices more closely. • 100 Low Lead is produced in large batches at one time, not continuously. • There are only three refineries in Phoenix that make 100 Low Lead: Conoco Phillips, Chevron and British Petroleum. All three of these refineries ship their product to the terminal at 53rd Avenue and Buckeye and all three products are fed into the same tanks. At the terminal, wholesalers and jobbers sell the product to FBO's. • The jobber for the Glendale Airport is Eastern Aviation Fuels, based out of New Bern, North Carolina, which is a Shell distributor. This jobber provides some volume pricing and is fairly competitive. • In Maricopa County, there are continuous supply issues with Low Lead fuel and there are restrictions on how much Low Lead fuel can be purchased and loaded on a daily basis. • The demand for Low Lead fuel has been shrinking. • The FBO cannot store and sit on a lot of Low Lead fuel as the price is too high to do so. • Taxes also affect fuel prices: for the Jet A fuel 41-cents of every gallon goes toward taxes and for the Low Lead fuel 38-cents of every gallon goes toward taxes. 3 • Maricopa County requires significantly more equipment to keep fuel vapors contained than other counties. Also in Maricopa County, more paperwork is required and more inspections are required which all add to the cost of the product. • Fuel at the Glendale Airport is the least expensive on the west side of the valley. • Volume also affects fuel prices: the more that is sold, the lower it can be sold for. It is hoped that 350,000 gallons of fuel will be sold out of the Glendale Airport next year; however, this is less than the Deer Valley Airport volume. • The Glendale Airport has the only FBO that sells fuel in the field. • Currently, the Glendale Airport is selling fuel at about 25-cents a gallon cheaper than at the Buckeye Airport. The Buckeye Airport does not have an FBO and does not do as much volume. Furthermore, when the Buckeye Airport runs out of stored gas, the Buckeye Airport can use local taxes to replenish the fuel storage. The Buckeye Airport has a self-serve tank. The Buckeye Airport uses city employees and city trucks. However, the Glendale Airport has an FBO which means that there are employees available in case there are fueling problems. • The Glendale Airport also charges a fuel flowage fee. • Glendale Aero Services performs twice daily quality control inspections of the fuel which costs approximately$60 a day. • At the Glendale Airport, Low Lead fuel is available for self-service, but the Jet A fuel is only available via full-service because it is a faster flowing fuel and the potential for spillage is higher. • To keep the prices competitive at the Glendale Airport, self-serve is offered where possible, volume discounts for over 100 gallons in Low Lead in one fueling are offered and volume discount are offered for Jet A fuel in 250, 500 and 1,000 gallon breaks. • One other aspect affecting fuel prices is the use of credit cards. The FBO pays 19-cents a gallon when an American Express card is used for purchases, however, there are no charges when a Shell credit card is used. Therefore, the FBO would like to encourage the use of Shell credit cards to keep the cost of fuel down. • Glendale Aero Services is also cutting costs by no longer leasing a Shell truck and utilizing an older, refurbished truck. Commissioner Rogen inquired about the shelf-life of jet fuel. Mr. Brandenburg stated that although jet fuel lasts for a long time, he rarely sits on fuel more than two weeks old because of how costly is it to store. V. SUMMARY OF CURRENT EVENTS Mr. Fix provided an update on current projects at or impacting the airport, which included the following: 4 • The Capital Improvement Project list was submitted to ADOT and the FAA. • The City of Glendale Streets Department striping crew will be out to perform work on the lead-in lines and the taxi-way center lines. • Regarding the current grant project of the removal and relocation of the blast fences, the design is still underway and this project should move forward in January 2012. Chair Cohoe inquired about the ConAir project. Mr. Fix explained that the preliminary environmental assessment was completed by Coffman Associates and negotiations are underway with the landowner. Chair Cohoe inquired about the recent local plane crash. Mr. Fix announced that sadly, one of the Glendale Airport tenants was killed in the crash, but Mr. Fix did not have details about the crash as of yet. VI. CALL TO THE PUBLIC No business from the floor was presented. VII. NEW BUSINESS REQUESTS The following future agenda items were suggested: • Another scheduled update by the new Airport restaurant owners. • A discussion of opportunities to increase Airport business • Land-use restrictions at the Airport • An update on the Airport Layout Plan VIII. NEXT MEETING TIME The next Commission meeting will be held at 7:00 p.m., Wednesday, January 11, 2011 on the second floor Conference Room of the Airport Terminal Building located at the Glendale Municipal Airport, 6801 N. Glen Harbor Blvd Suite 201, Glendale, AZ. IX. COMMISSION COMMENTS AND SUGGESTIONS Commissioner Sheeler thanked Mr. Brandenburg for an informative presentation. X. ADJOURNMENT The meeting was adjourned by consensus at 8:03 p.m. 5 The Aviation Advisory Commission Meeting Minutes of December 14, 2011 were approved at t e Commission Meeting of January 11, 2012. Walter L. Fix, A.A.E. Airport Administrator 623-930-2188 6