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HomeMy WebLinkAboutMinutes - Minutes - Aviation Advisory Commission - Meeting Date: 3/15/2017MINUTES AVIATION ADVISORY COMMISSION GLENDALE MUNICIPAL AIRPORT 6801 N. GLEN HARBOR BLVD. GLENDALE, ARIZONA 85307 AIRPORT CONFERENCE ROOM MARCH 15, 2017 6:00 P.M. I. CALL TO ORDER The meeting was called to order at 6:04 p.m. by Commissioner Quentin Tolby with the following Commissioners present: Chair Dagostino, Randy Kruger, Terry Aramian, and Leonard Escudero. Also present were Kenn Potts, Airport Administrator; Kurt Christianson, Assistant City Attorney; John Padilla, Luke Air Force Base (LAFB); Chris Toale, LAFB; Steve Fox, Fox Aviation; Michael Fox, Fox Aviation; Susan Moody, Starshine; Leeanne Gardner, Starshine II. APPROVAL OF MINUTES OF THE PREVIOUS MEETING Motion by Commissioner Aramian, second by Commissioner Kruger, to approve the February 15, 2017 Commission meeting minutes as written. The motion carried 5 — 0. III. REQUEST FOR CONTINUANCE OR WITHDRAWAL OF ITEMS. None. IV. AIRPORT BUSINESS 1. Starshine Office Suite Mr. Potts introduced Ms. Moody and Ms. Gardner of Starshine Associates. Ms. Moody gave a presentation on the mission, operations, and future plans for Starshine at the Airport. Ms. Moody explained that Starshine is a women's networking co-op which offers shared office space at the Airport Terminal Building as well as: speaking opportunities, a shared resource library, networking events, Motivational Mondays, Movement Classes, Lunch and Learns, accountability partnerships, Wine Down Wednesdays, and Girls' Day Out. Ms. Moody explained that two levels of membership are offered: community support at $95/month or shared space at $395/month. Ms. Moody announced that the newly proposed Airport lease includes expansion to lease all of Suite 200. Commissioner Escudero commented that Starshine brings additional business owners and visitors into the Airport which is beneficial for networking and word-of-mouth Airport promotion. Mr. Potts presented information on the proposed terminal lease with Starshine under the new variable and negotiable rate. Mr. Potts displayed a diagram of the second floor layout. Mr. Potts explained that Starshine would like to lease the entire Suite 200 and to also lease Suite 204 out on a daily basis for use as a training room for $25/day. Mr. Potts stated that daily office rental was a new business model to try at the Airport and noted that Suite 204 will be furnished by the Airport and offered for daily lease to others. Mr. Potts announced that Suite 206 will also be furnished and offered for daily lease at a rate of $20/day to Starshine. Commissioner Tolby inquired if there were any remodeling costs to the Airport and Mr. Potts replied in the negative. Mr. Potts relayed that Starshine has been an excellent tenant. Motion by Commissioner Aramian, second by Chair Dagostino, to recommend that the City Council authorize the City Manger to enter into a Lease Agreement Airport Terminal Office beginning May 1, 2017 with SFM Consulting LLC dba Starshine AZ Associates for office suite 200 at a negotiated rate of $19.44 psf/yr plus tax, including a thirty -day written cancellation clause and a 90 -day phase-in for payments as detailed in the Starshine AZ proposal. The motion carried 5 - 0. 2. Fox Aviation Land Lease Commissioner Kruger introduced Mr. Steve Fox and Mr. Michael Fox of Fox Aviation, who were in attendance to present their request to lease land at the Airport for construction of a hangar. Commissioner Kruger explained that Fox Aviation has made a proposal to build a large hangar, which will provide Fox an opportunity for a significant increase in business. Commissioner Kruger commented that the extra revenue will benefit the Airport and supported the expedition of the approval process for the requested expansion. Mr. Potts noted that this item was previously presented to the Commission by Mr. Potts during his Construction Project/Grants Status Report at the December 21, 2016 Aviation Advisory Commission meeting. Mr. Potts commented that the agenda item was for discussion only at this meeting. Mr. Steve Fox and Mr. Michael Fox gave a presentation on the intended business operations at the proposed hangar. Mr. Steve Fox explained that Fox Aviation wishes to secure a 40 -year lease on the parking lot north of the Glendale Terminal Building to build a hangar approximately 120'x150', for a flight school and maintenance of aircraft. Mr. Steve Fox utilized an aerial map of the Airport to indicate the proposed location and distributed a building elevation drawing. Mr. Steve Fox provided the following details regarding the proposal: • There will be an estimated 200 students at the flight school and approximately 30 planes. • Fox Aviation would be working with Westwind in Deer Valley and Fly Goodyear. • A ten-year contract with the flight school is being discussed. It is estimated that the Airport would benefit by $1.0 million and the City by $2.0 million in total over the ten years, as the students will shop and eat in the City. • Smaller aircraft will be utilized, mostly 172's. • The hangar will be two -stories, with offices on the second level. The offices would be built during a second phase. Mr. Potts explained that a federal grant was used for paving the area in the proposal. Mr. Potts has inquired with the FAA if a hangar could be put on the space and the FAA indicated that discussions would have to be held regarding the issue. Mr. Michael Fox thought that this space was identified for a hangar in the Master Plan. Mr. Potts replied that the space has been used for aircraft parking and has been paved for that use. Mr. Potts explained that the Master Plan is a plan for the future, but the area is used for parking. Mr. Potts stressed that the request must be presented to the FAA for review and approval as the pavement is less than two years old and cost approximately $2.5 million for the project using FAA grant funds. It is possible that the FAA could request reimbursement of the grant funds if the space is leased or built upon. Mr. Potts added that if the FAA were to approve the lease and building of a hangar on the space, the Airport would have to issue an RFP for all bidders and an environmental study would have to be conducted. Mr. Steve Fox explained that he would only cut out the hangar footprint out of the pavement and the rest of the paved area would remain intact. Mr. Michael Fox commented that their intent is to keep the building aligned with the existing Terminal Building, the blast radius, and taxiway. 2 Mr. Steve Fox inquired as to why an RFP had to be posted. Mr. Potts explained that there are state procurement laws which must be followed, the lease is for 40 years, and others have previously expressed interest in the location. Commissioner Tolby supported the building of a hangar on the site as it would bring business to the Airport. Commissioner Aramian agreed. Commissioner Escudero stated that the students could become future hangar owners. Chair Dagostino inquired as to projected revenues. Mr. Michael Fox estimated fuel burn of 28,000 to 30,000 gallons a month, bringing additional fuel revenue to the Airport. Mr. Steve Fox stated that the school would be educating the students up from flying the 172's to becoming airline pilots. Commissioner Escudero restated that there is a potential that the FAA would ask for reimbursement for the $2.5 million grant. Commissioner Escudero asked if the Commission could contact the FAA regarding support for the project. Mr. Steve Fox stressed that Fox Aviation could not afford to pay for a $2.5 million reimbursement. Commissioner Escudero asked if there was other interest in the same space. Mr. Potts replied that a year ago, another proprietor was interested in the location. Commissioner Escudero inquired on the timeframe for an RFP. Mr. Steve Fox stated that it has been 90 days she he sent the letter of intent to the City, with no response. Mr. Steve Fox stressed that Mr. Potts has done all he can within his purview, but there has been no response from other City staff. Mr. Steve Fox stated that his contract with the flight schools could be lost. Mr. Michael Fox added that the cost of steel has already gone up 10% during the past 90 days. Mr. Michael Fox stated that Fox Aviation has not asked for any subsidy from Council or the City for the project, however, it would be great to have some support from the City. Commissioner Escudero noted that since the Commission could not vote on a recommendation this evening, this would add 30 more days to the process. Commissioner Tolby suggested a special meeting and Commissioner Aramian agreed. Mr. Potts stated that the RFP process must be followed. Mr. Padilla inquired as to where the students for the proposed flight school would conduct practice flights. Mr. Michael Fox replied that that the aircraft would fly south toward Greenfield and stay south. Mr. Steve Fox stressed that the aircraft would stay out of the LAFB area. Commissioner Tolby suggested a special meeting for Commission vote. Mr. Potts stated that he has notified the Economic Development Department and is working with his Director so that the RFP process can get underway. Mr. Potts commented that this issue is one of his top priorities. Mr. Potts will schedule a special Commission meeting if necessary. 3. Airport War Memorial Commissioner Kruger presented information on a proposed war memorial on Airport property along Glendale Avenue. The agenda item was for discussion only. Commissioner Kruger's proposal included the following: • For the Commission to recommend to the City to designate the property at the northeast corner of the runway fronting Glendale Avenue as a place of an aviation -related memorial. • The actual name should be decided later in the planning process. 3 • Aircraft shells could be obtained from donations. • Funds for the development could be obtained from other donations. • The funds will be required for planning, excavation, foundation, fencing, electrical, mountings, signage, and other items. Commissioner Kruger noted that there are only palm trees at the site currently and Mr. Potts is checking on any FAA issues with approach. Chair Dagostino inquired if the FAA would require an environmental study. Mr. Potts replied in the positive, noting that the study would be in a different category. Commissioner Tolby inquired if the vision would include multiple aircraft. Commissioner Kruger replied in the positive and noted that the display would be an attractive symbol of the Airport. Commissioner Kruger commented that many people drive past the Airport and some do not even know that is an airport. Commissioner Tolby commented that if the space proposed is not available, perhaps the J.F. Long Estate could be approached for use of the site right next to the Airport entrance. Commissioner Kruger replied that he had thought of that site as well, however, the City does not own the site. Commissioner Escudero stated that he liked the proposal, noting that Falcon Field has a war memorial as well. Commissioner Escudero asked if the Airport would operate the memorial. Commissioner Kruger replied that there are no real operations, just some maintenance and running electricity to the site. Mr. Potts identified another City -owned plot of land at the entrance. Mr. Potts suggested forming a sub- committee to review the different sites and provide an analysis for the Commission. Commissioner Tolby asked if anyone had leads for aircraft donation for the proposed memorial. Mr. Michael Fox suggested contacting Mr. Dave Barron. Mr. Potts asked for volunteers for the sub -committee. Commissioner Kruger, Commissioner Tolby and Mr. Steve Fox volunteered. Mr. Potts will participate on the sub -committee as well. 4. Aviation Advisory Commission Member Qualifications Commissioner Kruger opened discussion on the City of Glendale rules for the Aviation Advisory Commission member qualifications. The agenda item was for discussion only. Commissioner Kruger inquired as to the status of a former request from the Commission whereby in the future, if there are no residents available with aviation experience to sit on the Commission, a Councilmember can seek non-resident volunteers with aviation experience and a vested interested in Glendale aviation. Mr. Potts explained that in January 2016, he and former Chair Yaeger met with the Government Services Committee (GSC) and presented the Commission's recommendation. Mr. Potts reported that the GSC was amenable to the proposition and wanted to consider the recommendation for certain other Boards and Commissions also. Mr. Potts will follow up with the GSC. 5. FAA Hangar Policy/Stakeholder Group Update El Mr. Potts estimated the draft document of the Airport Rules and Regulations to be ready by the end of March. Once the draft document is complete, another meeting of the Stakeholder Group will be scheduled. 6. SkyQuest Office Suite Lease Mr. Potts presented information for a correction to the per square foot rate in the recommendation for a proposed terminal lease for SkyQuest as approved by the Commission in February 2017. Motion by Chair Dagostino, second by Commissioner Kruger, to amend the February 2017 Commission recommendation for the City Council to authorize the City Manager to enter into a Lease Agreement Airport Terminal Office with SkyQuest Aviation, LLC for office suite 101 at a negotiated rate of $16.08 psf/yr plus tax, and office suites 103, 107A -C, 108, and 109 at a negotiated rate of $21.48 psf/yr plus tax. The motion carried 5 - 0. V. SUMMARY OF CURRENT EVENTS Mr. Potts reported on current airport activities: 1. Construction Projects/Grants Status o ADOT grant for Phase I of the North Apron project grant is going to Council on March 28a'. o Mr. Potts has received 95% plans for Phase IB of the North Apron project. The FAA has reviewed the plans and relayed comments. The City engineers are currently reviewing the plans. The project is estimated at $4.5 million in a federal grant and should begin late spring/early summer 2017. Information will be sent to Airport tenants regarding the phasing in of the project. Mr. Potts provided details on the sections to be milled only and sections which require full reconstruction. Tie -downs will be offered to hangar tenants during the project. o Mr. Potts will give an update on the Airport Layout Plan to the Economic Development Department. Mr. Potts will also meet with the City Manager and at a Council Workshop regarding the ALP and future plans for the Airport. 2. Operating Budget/Expenses/Revenues — graphs o Mr. Potts presented detailed financial information for the month of February and year-to- date February. 3. Airport Business Activity/Lease Updates o Mr. Potts and Mr. Ebersole hosted an Airport Tenant Appreciation Breakfast on March 8�'. o The lease with Kelmar was not renewed. o Mr. Potts is working on three RFQ proposals for the Land Lease: some of the interested parties are Airwest, Fox Aviation, and Butler. o Valley Aviation Services has not responded to the proposed revised lease. o The Commission Appreciation Hockey Game has been re -scheduled to April 6, 2017 due to the Final Four. Please RSVP to Mr. Potts. o The owners of the cafe in the Airport will attend the April meeting. o Mr. Potts drafted and distributed the Airport Year in Review. o Mr. Potts applied for the ADOT Airport of the Year. 4. Land Use Planning/Zoning/Development o Mr. Potts continues working on the issue with the parcel of land on the east side of the Airport which was donated by J.F. Long in regards to the removal of the encumbrance reserving land for a second runway. 5. 2017 NCAA Final Four National Championship o Another meeting was held with the FAA. The reservation system is open and the FBO is booking reservations, which will increase as the event draws closer. 6. Air Traffic Operations/Airspace/Community Relations 5 o Operations were up 12% for February 2017 versus February 2016. A noise complaint was received from the Garden Lakes area regarding a low flying aircraft. 7. Solar Panel Update o No update at this time. 8. Luke Air Force Base Operations: Mr. Padilla stated that there was no news to report at this time. Commissioner Escudero inquired if Mr. Padilla envisioned any issues with LAFB and Airport growth. Mr. Padilla replied that LAFB is concerned with where the aircraft will fly and that the flight paths are not in conflict with LAFB. Mr. Padilla comment that airspace north of the Airport is more congested than south of the Airport. Commissioner Escudero inquired as to the status of the Commission mission statement. Mr. Potts submitted it to the GSC for information but it does not require GSC approval. VI. CALL TO THE PUBLIC The floor was opened to public comment. No comments were made. VII. NEW BUSINESS REQUESTS (Future Agenda Items) The floor was opened for new business requests. None suggestions were made. VIII. NEXT MEETING TIME The next meeting date is Wednesday, April 19, 2017 at 6:00 p.m. on the second floor Conference Room of the Airport terminal building. IX. COMMISSION COMMENTS AND SUGGESTIONS The floor was opened for Commissioner comments. X. ADJOURNMENT The meeting was adjourned by consensus at 7:20 p.m. The Aviation Advisory o .ssion eeting Minutes of March 15, 2017 were approved at the Commission Meeting of April 19, 2017. /j Kenneth Pot)<A.A.E., MBA Airport Administrator 623-930-2188 Col