MELBOURNE AIRPORT AUTHORITY B R I E F REGULAR MEETING of April 27, :30 AM MELBOURNE INTERNATIONAL AIRPORT BOARD ROOM
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2 MELBOURNE AIRPORT AUTHORITY B R I E F REGULAR MEETING of April 27, :30 AM MELBOURNE INTERNATIONAL AIRPORT BOARD ROOM Pledge of Allegiance ACTION ITEMS APPROVAL OF MINUTES of the Regular Meeting of March 23, 2011 in the Melbourne International Airport Board Room ITEM NO. A-1 Recommendation to Approve Resolution No. 4-11, Providing For Second Quarter Budget Adjustments The Executive Director s Memorandum explaining the Second Quarter Budget adjustments and Resolution No are included with this package. Staff recommends approval of Resolution No amending Resolution 8-10, to provide for Second Quarter budget adjustments. ITEM NO. A-2 Recommendation to Approve Proposal for Aviation Commerce Park Sign This proposal includes the fabrication and installation of a new 13 feet by 11 feet double-faced, internallyilluminated monument sign. The sign will be installed on a double pole support in a concrete foundation at the intersection of General Aviation Drive and Apollo Boulevard. SignAccess, Inc. of Melbourne, Florida will design all aspects of the sign including the artistic, architectural, and engineering elements. This company has designed signs for Airport tenants, such as Embraer, DRS and Grumman. The total amount of the Proposal is as follows: 1) Fabricate one (1) 13 feet by 11 feet double-faced, internally-illuminated monument sign $15, ) Hi-gloss, clear top-coat, luster finish upgrade ) City of Melbourne, FL Building Department Permit fee ) Permit procurement ) Sealed Structural Engineering required by the City of Melbourne TOTAL $16,560.57
3 Airport Authority Brief Page 2 April 27, 2011 The sign will be installed approximately ten weeks from receipt of the permit issued by the City of Melbourne building department. Staff recommends the Board appropriate $16, of Airport funds for the Aviation Commerce Park sign and authorization for the Executive Director to execute said proposal on behalf of the Authority. ITEM NO. A-3 Recommendation to Approve an Aeronautical Building Lease with Executive Wings, Inc. The proposed lease is for the new hangar being constructed by Melbourne Airport Authority at the end of General Aviation Drive at the Northwest Apron. The tenant is Executive Wings, Inc. It currently leases space in the Sheltair facility and has been on the airport for approximately four years. Executive Wings is a FAA certified 145 Repair Station performing maintenance, repair, and overhaul primarily on executive size turboprop aircraft. It is requesting in Item A-6 to operate as a Class B Fixed Base Operation (FBO). The facilities consist of a 30,153 square foot hangar with office space and shops on a 1.75 acre site. The following are the main points of the lease: Term: Twenty (20) years with two (2) five-year options to extend, effective upon certificate of occupancy of the facility; A rate of $7.60 per square foot per year for an annual charge of $229, plus tax. This rate will be adjusted each five years by CPI increases of not less than two (2) percent or more than five (5) percent. The lease contains the standard provisions for insurance and responsibility for all taxes and fees. The Authority will be responsible for major structural repairs due to normal wear, with the tenant responsible for general maintenance. Tenant will be permitted to store aviation fuel in the Authority s central facility at the prevailing rate offered to other companies. The Authority will offer up to $2,000 of marketing assistance to Executive Wings in securing a sub-tenant for the space currently occupied by them in the hangar it currently leases from Sheltair. In the event that Executive Wings is unable to obtain a sub-tenant, and is required to continue the Sheltair lease until expiration at the end of July 2012, overall rent will be reduced at the rate equal to that of the existing Sheltair lease, not to exceed three (3) months.
4 Airport Authority Brief Page 3 April 27, 2011 Executive Wings has a small existing short-term office space lease in the Gateway Business Park. Upon completion of the new facility, Executive Wings shall endeavor to terminate said lease without prejudice. In the event that Executive Wings is unable to do this and is required to continue the lease until expiration or is unable to find a sub-tenant, the overall rent will be reduced at the rate equal to that of the existing Gateway lease not to exceed three (3) months. Commercial Investment Real Estate Group is designated the real estate broker for the land portion of this project, and the commission will be calculated using 1.75 acres at rental rate of $0.38 per square foot for 10 years. As a negotiated incentive, Tenant s monthly lease fee shall be waived for two (2) months and fifty percent waived for four (4) months. As this is an aviation lease, it is not subject to FAA approval. The lease of this facility will generate total rental revenues of $4,583,256 over the course of the 20-year lease term, not including the CPI rental adjustments. Staff recommends approval of the Lease of the new aircraft facility and site to Executive Wings, Inc. and authorization for the Executive Director to execute said Lease on behalf of the Authority. ITEM NO. A-4 Recommendation to Approve Bid to Britt Construction, Inc., for the Construction of the 30,153 Square Foot Hangar Facility to be Leased to Executive Wings, Inc. Bids were received on March 9, 2011 from 17 qualified bidders to build the hangar that is to be leased after construction to Executive Wings, Inc. Included in the project is the construction of an approximately 30,000 square foot aircraft service facility, provide certified as-built surveys, and other work as indicated in the contract documents required to meet current Florida and City of Melbourne building codes. The project is estimated to be completed in 240 days. Below is a schedule of the five lowest bids in ranked order by price: Ranking Vendor Price 1 Britt Construction Oakland, FL $2,360, Building Management Systems Melbourne, FL $2,400, W&J Construction Rockledge, FL $2,485, Welsh Construction Melbourne, FL $2,545, Doug Wilson Enterprises Cape Canaveral, FL $2,627,925.00
5 Airport Authority Brief Page 4 April 27, 2011 Britt Construction, the lowest bidder, confirmed to BRPH Architects & Engineers that it is capable of completing the scope of work specified for its bid amount of $2,360,000. The total cost of this project is estimated to be: Project Costs Amount Construction $2,360,000 Engineering (subject to Item A-5 approval) 286,615 Contingency (5%) 123,385 Total $2,770,000 Funding Amount FDOT $860,000 MAA $1,910,000 $2,770,000 The contributed capital portion of $860,000 will be recognized at the completion of the project and will increase Airport assets by the $2,770,000 total cost of construction plus engineering and administrative costs. Straight line asset depreciation will be a $92,334 annual non-cash expense based on a 30-year useful life. Staff recommends award of bid for Project Aloha Hangar to Britt Construction, Inc., the lowest qualified bidder, in the amount of $2,360,000, approval to increase this project budget by $770,000, and authorization for the Executive Director to execute said contracts on behalf of the Authority. ITEM NO. A-5 Recommendation to Approve Securing a Funding Source for the Airport s Portion to Construct a 30,153 Square Foot Hangar Facility to be Leased to Executive Wings, Inc. Staff requests approval to seek an alternative funding source to pay for the Airport s portion of the construction of the 30,153 square foot hangar facility in conjunction with the FDOT grant of $860,000. Staff is requesting a loan of $1,910,000 for 10 to 15 years at an estimated interest rate of less than five percent annually. In addition, the positive difference of the rental of $229,163 minus the total annual debt service will provide a cash rate of return of over six percent. Staff recommends approval to proceed with securing an alternative funding source for construction of the hangar, and authorization for the Executive Director to negotiate such source.
6 Airport Authority Brief Page 5 April 27, 2011 ITEM NO. A-6 Recommendation to Approve Fixed Base Operator (FBO) B Status for Executive Wings, Inc. Melbourne Airport Authority has received a completed application from Executive Wings, Inc. for Fixed Base Operator (FBO) B status. Executive Wings, Inc. is currently operating as Royal Atlantic Aviation, Inc. in the Sheltair Complex. The application is for the proposed facility located at 2008 General Aviation Drive that will be operational in early 2012 under a long-term lease with the Melbourne Airport Authority. The minimum requirements for a FBO B and Executive Wing s fulfillment of these requirements are as follows: REQUIREMENTS FOR FBO B - AIRCRAFT MAINTENANCE AND REPAIR Requirement Sufficient Land: Minimum Hangar 4,000 sf: Aircraft Apron Sufficient sf: Aircraft Service Equipment: Hours of Operation: Required Personnel: Min. 1 FAA Certified A&P mechanic plus one additional person Executive Wings: 1.75 acre site Proposed 30,153 sf facility Existing 46,000 sf adjacent to hangar Currently utilized in Sheltair facility 8hrs/day, 5 days/week with 24hr contact number Holds FAA 145 Repair Station License and employs 11 certified personnel The published policy for Fixed Base Operators contains the following Section: It is the policy of the City of Melbourne Airport Authority to extend the opportunity for providing an Aviation Service to any entity meeting the Authority's published standards for that service, subject to availability of suitable space at the Airport to conduct such activities. The Melbourne International Airport Master Plan provides the basis for determining whether suitable space is available. MINIMUM STANDARD REQUIREMENTS FOR AIRPORT AVIATION SERVICES - JULY 2004 SECTION 2 Staff has determined that Executive Wings, Inc. meets or intends to meet all minimum standards and that suitable space is available to conduct said activities. Staff recommends that FBO B status be awarded to Executive Wings upon completion of construction that meets the minimum required standards.
7 Airport Authority Brief Page 6 April 27, 2011 DISCUSSION ITEMS ITEM NO. D-1 MLB Air Traffic Control Tower The Air Traffic Control Tower (ATCT) at MLB was originally built in 1965, with a height of only 48 feet, 10 inches. The tower does not meet current ADA requirements mainly due to the lack of an elevator. The MLB ATCT is approximately 200 on the FAA replacement list. The 2008 FAA Condition Assessment report indicates the line of sight for the controllers is unsafe. It is extremely difficult for the controllers to differentiate between taxiways and runways from the control tower to determine the location of the aircraft. The runways layout and length when the ATCT was originally built were quite different than the current arrangement. Thus the increased distance to the far end of some runways and taxiways creates a considerable depth perception problem due to the control tower s substandard height. The problem is particularly acute at night. With the assistance of Jim Davenport of Alcalde & Fay, Airport staff has been in contact with Debbie Johnson, Vice President of Terminal Services, Federal Aviation Administration (FAA) in Washington, DC in an effort to move the MLB ATCT up on the list for replacement due to its substandard height and age. Ms. Johnson indicated that a 2009 Jacobs Engineering Report listed the Melbourne Tower as 200 on a list of approximately 540 towers in need of repair. Federal funding for the construction of a new tower is limited, but the FAA sometimes has residual funds that can be used at the end of a fiscal year. To qualify for such funds, Melbourne Airport Authority must have the FAA lab in Atlantic City site a new tower at the airport. This would allow the Authority to establish a cost estimate for design and construction that is needed for FAA involvement. Ms. Johnson has recommended that the Airport expend the $150,000 to $300,000 to conduct a three-dimensional tower site study in order for the Airport to qualify for FAA tower construction funds in a timely manner. This process would require an amendment with AEC and CBTX to conduct a preliminary study for use by the FAA laboratory that will complete the final analysis.
8 Airport Authority Brief Page 7 April 27, 2011 INFORMATION ITEMS ITEM NO. I-1 Construction Projects Update ITEM NO. I-2 Land Development Report Status of land development activity: Current Active Prospects 10 New Prospects since March 2 Leases Pending 4 Lease Renewals Pending 3 Site Visits 3 PUBLIC SPEAKERS Attachments a. Planning & Projects b. Operational Statistics c. Police & Security d. Operations and Maintenance Activity e. Airfield Navigational Aids Status f. Investment & Cash Report/Finances
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