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HomeMy WebLinkAboutAirport.Agenda.07-07-1992AGENDA CAPE GIRARDEAU AIRPORT ADVISORY BOARD TUESDAY, JULY 7, 1992, 4:00 P.M. PILOT'S CLUB I. Call to order. II. Approval of minutes of May 18 and June 9, 1992, meetings. III. Update on AIP entitlement funds. IV. Update on terminal building renovation. V. Election of officers for 1992-93. VI. Old Business. VII. Adjourn. The Airport Board of the City of Cape Girardeau, Missouri, may as a part of a study session or regular or special Airport Board meeting hold a closed session to discuss legal actions, causes of legal action or litigation, leasing, purchasing or sale of real estate, hiring, firing, promotion of personnel or employee labor relations. OWE MEMORANDUM TO: Douglas K. Leslie, Public Works Director FROM: Mark J. Seesing, Airport Manager DATE: July 7, 1992 SUBJECT: AIP Entitlement Funds As usual, I am receiving conflicting answers to the same questions. on Monday, July 6, I called and talked with Lorna Sandridge to obtain information on where we stand on our entitlements. According to Ms. Sandridge, the City stands to lose $184,789 of AIP entitlements if we do not have an approved project by October 1, 1992, for fiscal year 1993. She would also like for us to submit a pre -app for fiscal year 1994 planning purposes. Another item I discussed with Ms. Sandridge pertained to the funds that still remain in the 04 grant. Those monies can be used to bring our signage into compliance with A.C. 18-C along with repainting runway 10-28 and taxiways and ramps. We should also complete the entrance road and parking lot with the 04 money. she said any money that was not spent from the 04 grant would be lost because it was fiscal year 1987-1988 and 1989 money that had gone beyond the three year limit. Today, July 7, I called and talked with Lloyd Gilworth in the Airports Division to ask the same questions. Lloyd said that we need to have a project by October 1, 1993, for the $184,789 to be safe. They would like to have that project as soon as possible along with a pre -app for fiscal year 1994. He agreed with Lorna that we would lose any of the $275,000 we do not spend. As best as I can decipher, we have money right now under grant that we can use for (1) signage, (2) painting, (3) entrance road. I suggest we move ahead quickly on those projects. We also have funds in the 05 grant that are for a water system. A decision on the water will need to be made very soon so we can see if we need to add more money to the 05 grant (could be a place for the $185,789). If we complete these projects and still have unallocated funds in addition to the calendar year 1990 AIP entitlement of $300,000, I feel it should go toward the purchase of equipment, and we should try to get discretionary funds to do a ramp/apron/taxiway project for fiscal year 1994. MJS:gc MEMORANDUM TO: J. Ronald Fischer, City Manager ^1f FROM: Douglas K. Leslie, Public Works Director 0 DATE: June 18, 1992 SUBJECT: Update on Airport Financial Report The total revenues to date for the 1992 air show are $90,495.57. There remains to be collected reimbursement from the Cape Jaycees for concessions and reimbursement of $3,405.60 from the Blue Angles for smoke oil. The expenditures total $88,621.39, which includes reimbursement to the Pilot's Club for an advance of $5,380 and reimbursement to various City funds for overtime expended for preparation and cleanup after the show. The present balance is $1,862.18 to which we will add the Jaycees concession reimbursement and the reimbursement from the Blue Angels for the smoke oil. I would be pleased to answer any questions you might have regarding this report. DKL:gc w.. Performers: Blue Angels $12,000.00 Peterson-Krier 4,400.00 Sky Signs 7.500.00 $23,900.00 Preshow Exp.: Mesh & Stakes 1,593.03 Banners 3,900.00 Banner Towing 800.00 6,293.03 P.A. System: 3,900.00 Fuel & Oil: Cape Central Airways 3,692.26 Capetown RV 1.737.96 5,430.22 Smoke Oil: 3,405.60* Insurance: 2,894.00 Car Rental: National 258.62 Ryder Bus 11,184.00 Ryder Vans 390.00 11,832.62 Motel Rooms: 5,603.28 Advertisement: Television 3,620.50 Radio 1,098.00 Paper 1.894.84 6,613.34 Posters: 168.63 Signs: 295.07 Portable Toilets: 1,650.00 �► Caps, Jackets, T-Shirts: 1,290.10 k J I -M 71) Miscellaneous: Schwartz 1,460.40 Hub Cap 52.31 Plaza Tire 35.00 Reimburse City Overtime 5,390.60 Reimburse Pilot's Club 5,380.00 Reimburse KTXI (phone calls, overnite mail) 27.19 12,3945.00 Change Fund: 3.000.00 Total To Date: $88,621.39 * Possible reimbursement from Blue Angels Corporate Sponsors: Pilot's Club 5,000.00 KBSI-TV 1,500.00 Southeast Hospital 1,500.00 CyberTel 1,500.00 St. Francis Hospital 1,500.00 First National Bank 1,500.00 Motorcycle Stuff 1,500.00 Chamber of Commerce 1,500.00 Concord Publishing (program) 341.58 $15,841.58 Ticket Sales: (advance, gate, change fund) 73,784.49 Commissions: Pilot's Club 869.50 Jaycees nendinc 869.50 Total To Date: $90,495.57 Total Revenues to Date: $90,495.57 Total Expenditures to Date: 88,621.39 $ 1,874.18 Less advance sale ticket refund (4 tickets) -_1200 $ 1,862.18 The City has paid to date $45,048.07 of the total expendi- tures. Of this amount, $15,500 has been paid to the City leaving a remainder of $29,548.70 to be reimbursed to the City. These expenditures break down as follows: says is a lawsuit filed May 5 that a trust associated wi"ae Whites hasn't come a, with S3 m n that General Electric demanded in December. GE Capital also alleges that Thomas J. Please turn to page 49A once only to have the deal explode into law- suits, was un the verge in February of clos- ing a deal with Fennsylsania-based Seco Chemical when negotiations broke off. While Schierholz won't talk about the deal except to say there were "lots of rea- sons" it fell through, Soco decided to take its side of the story to court, demanding that acquiring Chemtech. I dtm - I I In addition to WilliaSchierolz �_m h o,nr h and Schierholz, other defendants in the Socu lawsuit are the law fm, of.Armstrong'feas- dale Schlafy & Davis and Joseph von Kaenel, a partner with the firm which was representing Chemtech. It is von Keene[ TWA's domestic system falls deeper into red Operating loss hits $233 million By PATRICIA MILLER 7 rills World Airlines Inc.', dome,tic operations — inn'easingly the o oubled mnr- pzny's lifichi e— took another drubbing last year. [%\A reported ala operating lo,s of $2i3 million on operative revenue of S'_5 billion for its domestic operations In 1991 as the recesion hurt the airline industry in general. In 1990, the airline', operating loss was S 134 million on opcall ng revenue of S2.9 billion. Domestic operations grew in importance last year when TWA sold some London routes, some of the compan} s most proF rtable route,. So far, TWA has managed to keep cash boo, ire into Is coffersby selling assets, But the airline, addled with an aging feel, is running out ofassets to sell and needs to start milking money on Its airline operations, air- line industn analysis say. TWA's international operations also took a hit last year, reporting an operating loss of 5115 million on operating revenue of $1.2 billion in 1991 compared with an operating loss of $27.8 million on operating revenue of $1.7 billion in 1990. TWA does not break out its domestic and international results in it, annual reports. The financial breakdown of the airline's operations was obtained through the U.S. Department of Transportation. I WA is an important economic force in St. Louis. The airline controls 59 of the 83 . " TWA profitting $200 Q $,°° dives $100 �'. 0- _$100 , International -$200T '87 '88 '89 '90 '91 gates at Lambert -St. Louis International Air- port and employs 7,438 people here. TWA spokesman Don Fleming said the summer has "promise;' helped along by air- fare discounting and increased volumes, but the airline wonders what the fall will bring I. terms of fare structuring and how that will affect the airline's yields. eo_ E c- 100 �s t $200 Domestic ` -$3001 -- '87 '88 '89 '90 '9 "We've got the passenger volume now but we are wondering what the future holds:" Fleming said "We can sustain a year here and there of losses but in the long nm both sides have ,or to be profitable." While the recession can be blamed for Please turn fo page 7A sass.. ...... ,.. . - 'too at which the "Greeny "rpoti' was revealed. 1 Chemtech and Schierholz have not filed responses to Soco's allegations, said loer Chefitz, an attorney with the Chicago law fine Katie. Machin & Zavis, which is rep- - Please turn to page 48A Accounting Sunk Rubin Brown pick by MSD stirs protest Cannella, Auxier cry foul at meeting By RICK DESLOGE the Metropolitan Sewer District board came under tine from the local managers of two Big Six accounting firms Wednesday as it voted url mously to switch S400,000 in account- ing business to Rubin Brown Gorn- stein & C The heads of the two Big Six firms George Auxier of Coopers & Lybrand and Vincent Cannella of KPMG Peat Marwick questioned NISD's selection process after they Id they learned the sewer district was na considering their bids because their accounting firms were not St. Louis based. Two MSD trustees declined to comment on that part of the selection process. Rubin Brown was allowed to revise its proposed fees after all bids were submitted, according to the accounting managers and an MSD trustee. Richard Gasto-f, one of two MSD trustees assigned to oversee the selec- tion process, is chairman of McBride Please turn to page 46A 4Mrtr 18-24,1992 ST. LOUIS BUSINESS JOURNAL TWA to face tough competition from Delta in Atlanta mini -hub C—mma:a rrem to some of the domestic operation's red ink in 1991, TWA's one -hub system is nothing to lean on in a market where multi -hub airlines dominate, said airline analysts, many of whom are projecting more losses on the domestic side next year. "TWA's presence across the Atlantic is smaller than it once was since they got rid of some of their best routes and they've got a lot of problems domestically," said Dan Kasper, director of the transportation prac- tice at Harbridge House in Boston. "This says to me that this is not going to be a big year fur TW A to build cash," Kasper said. . The current fare war and TWA's posi- tioning as the "low-cost carrier" could hurt the airline's domestic operations and even ground the airline in a matter of time, said Remy Fisher, vice president of Kemper Financial Services in Chicago. The sale of the airline's operations at O'Hare International Airport in Chicago to American Airlines, however, puts more cash in Carl Icahn's pockets and could keep TWA flying for a while longer, Fisher said. TWA +expects to receive between 5150 million to $500 million from American depending on whether it gets a lump sum payment or accepts a 20 -year payment schedule. "This could mean real money to TWA and may give them a little more slaving power in the fare wars but lower fares mean lower domestic earnings;' she said "The question mark there is how much volume can offset the lower fares and how loyal are TWA's customers. "My sense is that the industry is taking its toughest stance for a long lune which will squeeze out the weak carriers," she said 'I WA's international business has long been more profitable than its domestic busi- ness. In 1987, 1988 and 1989, for example, TWA's international business reported oper- ating profits of $161 million, 5147 mill fun and $14 million, respectively. At the same time, it, domestic operations reported Vper- ating profits of S79 million, S113 million and $10 million in 1987, 1988 and 1989, respectively. Operating profits are profits before taxes, special gains or charges, and interest expense. The Persian Gulf War hurt international t. stress across the hoard in 1990 and 1991 ,,Goth many girl Ines including TWA reporting losses on international operations. Lower air fares and to more global econ- omy, however, are "filling international Flights up," said Andrew Nocella, an analyst with AVMARK Inc., an aviation consulting Too based in Arlington, Va. "TWA's international operations should return to profitability," Nocella said. "But its domestic operations are a bigger Portion of its operations and significant action has to be taken there since it'll take both divisions to be successful for TWA to survive," he said. TWA's domestic operations reported an operating loss of $43.2 million on operating revenue of $628.8 million in the fourth quar- ter of 1991, according to the Department of Transportation. The airline's international operations reported an operating loss of $47.5 million on operating revenue of $276.4 million in the fourth quarter of 1991, The domestic operations reported a net loss for last year of $37.3 million while the international operations posted net income of $71.8 million, according to the Depart- ment of Transportation, Both were bolstered by the sale of assets. T WA's attempt to restructure its debt load through a "pre -planned" bankruptcy rcurga- nization earlier this year will reduce its cost structure, allowing it more leeway to lower fares and still make money, Nocella said. "But its one -hub system puts it at a major competitive disadvantage since the other air- lines with their multi -hubs can offer a greater selection (if flights," he said. Part ofTW A's strategy is to develop mini - hubs and promote traffic into those hubs to take advantage of operating efficiencies inherent in hub operations, Fleming said. The airline is developing a mini -hub in Atlanta where it will offer limited service beginning June I. Analysts are divided over the strategy. "Delta will be a lough competitor in Atlanta even though they are a high-cost car- rier;" Nocella said. "They have bigger air- planes, more capacity than TWA so they can match fares," he said. Kasper said he is not "troubled" by "I'WA',, Atlanta strategy since there is addi- tional room for service in Atlanta and it wm(t cost the airline very much in start-up costs. A suspect they will be positive cash -Flow rather quickly Ihere and it may turn out to be a sensible move for them short term, but in the long term they are not in a position finan- cially to go head to head with Delta so this is not a big deal," he said. "1 remain pessimistic over I WA's prospects over the longer lemt," he said. Price Waterhouc Rely On OurY Call On Our t Price Waterho John R. Jordan, Jr., Man, One Boatmen's Plaza St. Louis, M Aggressive Debt Collect Davis & Weismm Attorneys at Lot (314) 241-110 Kalharyn B. Davis Jeffrey T. Weisman := CITY OF CAPE GIRARDEAU 3Gx 3,7 CPACE OFT E /JPPoPr AGER - - ... r. CAPE GIWWOEW, W MM17 7ELEPH E (313133H2q FA%13�113ffi7BM June 22, 1992 Mr. Truman R. Cole, Jr. 2105 Perryville Road Cape Girardeau, MO 63701 Dear Truman: The Cape Girardeau Airport Advisory Board wishes to say thank you for your help in the past 15 years serving the City of Cape Girardeau Airport. You were already serving when I was appointed, and I must say you and the others were very good teachers. I received a vast amount of knowledge very quickly! Although you are retiring from this decision making board, I know your knowledge of flying and our airport will still always be in your heart, and your respected comments will still be used for years to come. You were never paid money while doing this job, and I know you will work for the same fee in the coming years. Although general aviation has changed so much in the past 16 years that I have been flying, I know you have seen many other changes. I do not know how we will keep up with these changes, but I am sure we will. We have no problem looking at the Cape Girardeau Municipal Airport and seeing the physical changes and updates that have occurred during your tenure, and know we had the pleasure and pride in making these decisions. I know I have said thank you verbally many times, but I wanted to document this in saying that it has been a real pleasure serving with you. Thanks and Good Luck! JWM: go Jerry W. McClanahan Airport Board Chairman "HOME OF MISSOURI STATE FLAG" CITY OF CAPE GIRARDEAU oo. Pox 917 C ME O THE .. .. CPPE GIP DEMI, W W..11 'RPoPT MINAGEP TELEP E(914)y4R10 Fq%191,19361918 June 22, 1992 Mr. John T. Seesing 1008 Good Hope Cape Girardeau, MO 63701 Dear J.T.: The Cape Girardeau Airport Advisory Board wishes to say thank you for your help in the past three years serving the City of Cape Girardeau Airport. Although you are leaving this decision making board, I know your knowledge of flying and our airport will still always be in your heart, and your respected comments will still be used for years to come. You were never paid money while doing this job, and I know you will work for the same fee in the coming years. Although general aviation has changed so much in the past 16 years that I have been flying, I know you have seen many other changes. I do not know how we will keep up with these changes, but I am sure we will. We have no problem looking at the Cape Girardeau Municipal Airport and seeing the physical changes and updates that have occurred during your tenure, and know we had the pleasure and pride in making these decisions. I know I have said thank you verbally many times, but I wanted to document this in saying that it has been a real pleasure serving with you. �ViTamm n Thanks and Good Luck! Jerry W. McClanahan Airport Board Chairman "HOME OF MISSOURI STATE FLAG"