AIRPORT COMMITTEE AGENDATuesday, February 14, 2017 - 2:00 PM

Conference Room A, City Hall, 169 SW Coast Highway, Newport , Oregon 97365

The meeting location is accessible to persons with disabilities. A request for an interpreter forthe hearing impaired, or for other accommodations for persons with disabilities, should be madeat least 48 hours in advance of the meeting to Peggy Hawker, City Recorder at 541.574.0613.

The agenda may be amended during the meeting to add or delete items, change the order ofagenda items, or discuss any other business deemed necessary at the time of the meeting.

1. CALL TO ORDER

2. ROLL CALL

3. APPROVAL OF MINUTES

3.A. January 10, 2017 draft minutesJan_10_2017_draft_minutes.pdf

4. DISCUSSION/ACTION ITEMS

4.A. Interview Ralph Busby for committee membershipRalph Busby committee application.pdf

4.B. Vision 20401

1-30-17-Scanned Letter for Advisory Committees-Vision 2040.pdf

4.C. Master Plan update

4.D.Fuel policyAirport_Fuel_Pricing_2016 (1).pdf

4.E. Plan for dealing with priorit ies

4.F. Dest inat ion Newport Power Point Presentat ion

5. OPERATIONS REPORT

5.A. Operat ions reportOperations_Report_for_February_Meeting_2017.pdfAirport_Goal_Setting_2017-18_Form.pdfHangar__Apron_memo_for Airport_comm_2017.pdfFuture hangar dev reduced.pdfTerminal area reduced.pdfLetter_of_support_for_ODA_2017docx.pdf

6. COMMITTEE COMMENTS

7. PUBLIC COMMENTS

8. DEVELOP NEXT AGENDA

9. ADJOURN

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January 10, 2017

2:00 PM

Newport, Oregon The City of Newport Airport Committee met on the above date in Conference Room A, Newport City Hall. In attendance were: Committee chair Jeff Bertuleit, committee members Susan Reese (via phone from Portland), Mark Watkins, Jim Shaw, and Ken Brown. Also in attendance: City Council liaison Laura Swanson, City Manager Spencer Nebel, Airport staff Lance Vanderbeck, Committee staff Bob Fuller (Public Works), and prospective committee member Terry Buggenhagen.

1. The meeting was called to order by committee chair Jeff Bertuleit at 2:00 PM.

2. Roll Call

3. Approval of Minutes: Motion was made and seconded to approve the draft minutes from the December 13, 2016 meeting. The motion passed on a unanimous voice vote.

4. Discussion/action items

4.A. New Airport Committee applicant Terry Buggenhagen was introduced to the committee. (Application and resume included in meeting packet). Following a brief discussion, motion was made and seconded to recommend Buggenhagen as a member of the Airport Committee to the Mayor and City Council. The motion passed on a unanimous voice vote. 4.B. Goal-setting discussion and suggestions i. Nebel advised the committee to limit the goals to 4-5 items that can be done in the coming fiscal year. ii. Bertuleit thought water and sewer improvements should be on this list because they impact future development plans. iii. Vanderbeck advised he will be meeting with Destination Newport committee in February to discuss marketing the airport for tourism. iv. One of the goals established from previous meetings was regarding developing “user-friendly services”. It was thought this term needs to be defined. Watkins said he considered airline service to fall into this category. Brown said it might be hard to convince people of the expense given the 1 ½ hour drive to Eugene to access flights to a number of destinations, and free parking as well at the Eugene airport.

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v. Watkins suggested hangar construction should be a priority given there are several interested parties on the waiting list. vi. Motion was made, seconded and passed unanimously to list the following goals for the coming fiscal year:

a. Initiate water and sewer infrastructure upgrades. b. Expansion of hangar construction. c. Identify various air service and marketing materials to attract

services. d. Work with Destination Newport and others to develop marketing. e. Review user-friendly services.

4.C. Vision 2040 meeting: Nebel invited interested Committee members to the Feb. 16th meeting, to be held at 5:30 PM at Newport City Hall. 4.D. Briefing on Airport Master Plan: Provided via handout, attached to these minutes. The Committee agreed 2500 feet would be adequate for runway 2-20. 4.E. Airport job descriptions: Review and discuss: The Committee agreed to recommend moving forward with the current job descriptions.

5. Operations report: Vanderbeck (refer to meeting packet for full document).

6. Committee comments i. Watkins emphasized the need for Destination Newport and the

Chamber of Commerce to include the airport in their marketing programs.

ii. Vanderbeck said it’s important to have a business plan to submit to the Oregon Department of Aviation regarding airport expansion/improvements.

iii. Fuel pricing policy report submitted by Vanderbeck (handout, attached to these minutes).

iv. Shaw asked about the barbeque project; Nebel said he will be meeting with the Public Works Director to determine what more is needed to move forward.

7. Public Comments: None.

8. Next agenda: Fuel policy, plan for dealing with priorities, and Master Plan update.

9. Meeting adjourned at 3:25 PM.

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City of Newport

Memo

To: Airport Committee

From: Lance Vanderbeck

Date: 01/09/2017

Re: Fuel Pricing

Looking further into fuel pricing for Newport Municipal Airport. I would like to propose three options for fuel pricing at the City owned FBO. Fuel is currently the airport’s main source of income. Fuel pricing is important to get right to stay competitive in the local area market and not add to the financial burdened to the City of Newport.

Fuel price per gallon is $3.90 Jet-A, $4.00 Jet-A+, $5.10 FS 100LL, $5.00 SS 100LL, and $4.50 for SS 100LL local discount card. All aviation fuel comes from the same fueling rack. The fuel rack is supplied from different fueling sources, pipeline, rail car, ship, etc. Our fuel supplier Western Petroleum use Lee & Brothers trucking to deliver our fuel orders. Fuel purchase pricing may be different depending on the day the order was placed. The amount that is ordered also plays a factor. For Newport any fuel load of Jet-A under 8500 gallons is priced higher per gallon. The same applies for 100ll under 6500 gallons.

When ordering fuel, it is best to order a full load to assure best pricing per gallon. Once the fuel load is delivered; I look at the per gallon purchase price to assure pricing is appropriate to make a profit for the airport and we stay in the average with the local area. When prices need to be changed there is a two to three-hour process to change all the reader boards, point of sales machines, internet web sites, and FMU reader.

Next, it is difficult to know when other airfields buy fuel. Some other things to consider is when pricing with the local area, 100ll has a 9-month shelf-life before you have to have the fuel tested and okayed to still sell. Some pricing fluctuations in the local market may be caused by airfields needing to offload fuel to avoid taking a bigger lose. The bigger lose is if your fuel does not pass the 9-month inspection you are required to have the fuel tank and fuel truck drained cleaned and new fuel ordered and put in. The old stuff is taken off and recycled at the airports expense.

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I have come up with three possible pricing options that could help with setting fuel pricing. Also included are options of when it may be best to change pricing to stay in the average of the local market and a possible bulk fuel order discount program. If you have any other suggestions, please feel free to add them in.

1. Pricing the fuel to stay within the average of the surrounding local area. Fuel average would be found online at Airnav.com and fuel would be priced accordingly. This is the current method being used at the FBO. This keeps us competitive but can drop revenue below .75 cents per gallon and can put us above $2 per gallon. One thing to consider that has local market pricing may drop we are still selling fuel off the current load purchase price. We may not have the opportunity to lower pricing. An option to add to this is a discount for Jet-A bulk fuel buying. We may be able to price match best online price, or give a .05 cent discount on fuel order over 75 gallons, .10 cents on 200 or more gallons, and .15 cents on 500 or more.

2. Pricing would be no less than .75 cents per gallon and no more than $2 per gallon of fuel load purchase price. We can still maintain flexibility to adjust pricing accordingly. We also can add the Jet-A discount for bulk fuel buying. We may be able to price match best online price, or give a .05 cent discount on fuel order over 75 gallons, .10 cents on 200 or more gallons, and .15 cents on 500 or more.

3. Pricing can be done on an average percentage of no less than 20% to no more than 35% of fuel load purchase price. Would bring in less revenue on fuel sales but keeps fuel price low. An example of this would be if fuel is bought at $2 per gallon at 20% it would be sold at $2.40, and at 35% it would be sold at $2.70, but it may not bring in enough revenue to cover maintenance cost of fueling cost.

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NEWPORT MUNICIPAL AIRPORT OPERATIONS REPORT FROM: JANUARY 1 – JANUARY 31, 2017

02/01/2017

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The State of Oregon Department of Aviation asked for a letter of support for using funds from HB 2075 to be spent on rural air service business plan development. I delivered the message in person at the Department of Aviation Board meeting. There was a spirted discussion on rural air service and how the grant money will be distributed. I have attached a copy of the letter of support for you to read. We also where provided an update on the COAR grant. The last Aviation Review Committee (ARC) meeting for approval of funding was held February 2nd. The ODA will have the outcome of the meeting on their web site hopefully by February 15th. Rural Air Service – Zephyr Air will be starting rural air service in Washington and is still interested in providing service to Newport and rural Oregon. Konect Aviation is still waiting on us and is still wanting to provide air service for us. I am hopeful that soon the State of Oregon will make a decision on rural air service and develop a business plan that will best fit rural Oregon communities. Connect Oregon Grant. I have scheduled install dates of February 9th for the Ground Link, and February 21st for the Ceilometer. I will then be able to close out that Grant for reimbursement. I had a great conversation with John Lawson at SEA ATCC. We are the first in the sector to have a Ground Link installed on the field. They are really excited to have one and look forward to working with us to see how it will work out for airports in the sector. Received a phone call from Jacob Dalstra, Regional Director for Life Flight. Life Flight is interested in basing an operation here in Newport. He will be here Friday, 2/10/17, to look at the space available in the FBO. They are needing three offices and hangar space for their Helio. There is also the possibility they will move their PC-12 here in the future too. We have contracted with Dustin Capri to draw the engineering plans for the pavilion. I let him know the deadline for construction is to be finished by the end of June 2017. Derrick Tokos is helping with the FAA AIP 24 grant. Derrick is putting in for a contract with a land appraiser. We had a box hangar lose a good portion of the back of it during the storms we had. I have sent a letter to the owner to inform them is needs to be repaired. Chief Murphy let me the ARFF training program update is done. They have held a few of the training classes and taping them for future use. PAPI’s 34 are scheduled for a flight check in February. Once the flight check is done we have to wait for the report. We are hopeful that nothing else will be found. We have renewed our contract for wildlife service with the USDA. We have also renewed our contract with DBT who took over all of Visalia’s North American AWOS accounts for service. John Matherly and I have completed our NATA Safety first recurrent training. I will be scheduling a class with the USAD for the wild life hazing training. And holding a class for the 139 air field safety and responsibilities. We have had a few issues with the crew cars. The van had and electrical short draining the battery and one of Crown Vic needs a new engine cooling fan. Once the black crown Vic is back I send the other Crow Vic down for a safety inspection. We had the back area access road sluff a little bit. Public Works added rock and grated it out.

Following is how we finished the month of January 2017. 10

NEWPORT MUNICIPAL AIRPORT OPERATIONS REPORT FROM: JANUARY 1 – JANUARY 31, 2017

02/01/2017

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Month IN OUT Tot.A.O Jet A Av Gas Self Serve Total

July 430 429 859 6869 841 840 8549

Aug 332 334 666 3231 1062 1271 5564

Sept 327 325 652 2298 722 979 3999

Oct 297 293 590 1720 140 452 2312

Nov 235 241 476 1706 155 429 2290

Dec 240 242 482 3009 76 546 3631

Jan 264 269 533 1678 113 432 2223

Feb 36 37 73 0 0 0

Mar 0 0

Apr 0 0

May 0 0

Jun 0 0

Cur. FY 2161 2170 4331 20511 3108 4949 28568

FY 15/16 4263 4234 8497 26182 7854 8524 42560

FY 14/15 3686 3572 7258 71113 5985 8103 85201

FY 13/14 3199 2914 6113 87073 4098 9374 100546

FY 12/13 3121 3083 6204 31135 4430 11049 46614

FY 12/11 3219 3181 6400 41183 4275 15823 61281

FY 10/11 3023 3085 6108 73458 4119 12004 89581

Average 3419 3345 6763 55024 5127 10813 70964

Aircraft Quantity Fuel Consumption

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NEWPORT MUNICIPAL AIRPORT OPERATIONS REPORT FROM: JANUARY 1 – JANUARY 31, 2017

02/01/2017

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NEWPORT MUNICIPAL AIRPORT OPERATIONS REPORT FROM: JANUARY 1 – JANUARY 31, 2017

02/01/2017

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I have attached our local area’s fuel prices for Jet-A and 100LL.

CY 2013 2014 2015 2016 2017JAN 2 2 11 4 2

FEB 5 4 8 4 0

MAR 9 5 7 4

APR 4 5 10 7

MAY 14 9 8 4

JUN 9 12 28 8

JUL 22 16 30 16

AUG 24 3 25 10

SEP 14 10 14 16

OCT 8 5 13 9

NOV 14 2 11 3

DEC 1 1 4 7

Total 126 74 169 92 2

Rental Cars

2012 2013 2014 2015 2016 2017

JAN 0 0 33 23 28 21

FEB 2 0 16 17 23 1

MAR 2 0 29 41 25

APR 2 0 28 36 42

MAY 9 0 29 20 45

JUN 14 0 19 43 48

JUL 10 28 39 41 52

AUG 0 27 19 38 43

SEP 0 25 25 32 31

OCT 0 35 12 22 14

NOV 0 22 19 29 22

DEC 0 8 10 16 17

Total 39 145 278 358 390 22

Courtesy Cars Loaned Out

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NEWPORT MUNICIPAL AIRPORT OPERATIONS REPORT FROM: JANUARY 1 – JANUARY 31, 2017

02/01/2017

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Jet-A prices within 65 miles of Newport, OR 97365

Jet A $3.20—$5.04 Average $3.78 KONP Newport Municipal Airport Newport, OR Newport Municipal Airport Phillips 66 FS $3.90 KCVO Corvallis Municipal Airport Corvallis, OR Corvallis Aero Service EPIC FS $3.70 6S2 Florence Municipal Airport Florence, OR Florence Airport Volunteer Group SS $3.20 KEUG Mahlon Sweet Field Airport Eugene, OR Atlantic Aviation EPIC FS $5.04 KSLE McNary Field Airport Salem, OR Salem Aviation Fueling @ Salem Air Center EPIC FS $4.49 KTMK Tillamook Airport Tillamook, OR Tillamook Airport Phillips 66 PS $3.39 KMMV Mc Minnville Municipal Airport Mc Minnville, OR Cirrus Aviation Epic $3.50 77S Hobby Field Airport Creswell, OR Creswell Airport Phillips 66 SS $3.20 17S Chehalem Airpark Newberg, OR Precision Helicopters PS $3.89 2S6 Sportsman Airpark Newberg, OR Sportsman Airpark independent FS $3.45

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NEWPORT MUNICIPAL AIRPORT OPERATIONS REPORT FROM: JANUARY 1 – JANUARY 31, 2017

02/01/2017

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100LL Avgas prices within 55 miles of Newport, OR 97365

100LL $3.99—$5.72 Average $4.71 KONP Newport Municipal Airport Newport, OR Newport Municipal Airport Phillips 66 SS $5.00 or with pre-paid fuel card. $4.50 FS $5.10 KCVO Corvallis Municipal Airport Corvallis, OR Corvallis Aero Service EPIC SS $4.85 FS $5.35 6S2 Florence Municipal Airport Florence, OR Florence Airport Volunteer Group SS $4.60 7S5 Independence State Airport Independence, OR Nutsch Aviation Phillips 66 SS $3.99 Independence Aviation LLC SS $4.19 S12 Albany Municipal Airport Albany, OR Infinite Air Center, LLC EPIC SS $4.09 KEUG Mahlon Sweet Field Airport Eugene, OR Atlantic Aviation EPIC SS $4.50 FS $5.52 S30 Lebanon State Airport Lebanon, OR LebanAir Aviation independent SS $4.47 KSLE McNary Field Airport Salem, OR Salem Aviation Fueling @ Salem Air Center EPIC SS $4.85 FS $5.37 KTMK Tillamook Airport Tillamook, OR Tillamook Airport Phillips 66 SS $4.55 KMMV Mc Minnville Municipal Airport Mc Minnville, OR Cirrus Aviation Epic SS $4.25 FS $4.60

I have included some pictures from January. 15

City of Newport 2017 Airport Committee Goals

Submitted by: Lance Vanderbeck Airport Director

Department: Airport

Date: January 13, 2017

A. Service Priorities Narrative:

In November 2016 the Airport Committee reviewed the list of priorities developed by

the Regional Airport Task Force. The Airport Committee selected 11 items from the

list and each member prioritized them. Those priorities where then ranked from

highest to lowest to help develop a list of goals for the Airport Committee.

During the January 2017 Airport Committee meeting a discussion took place about

the prioritizing goals for 2017. The top priorities that are to be focused on are: need

of infrastructure to the airport i.e. water & sewer, addition of hangars for rent,

marketing further use of aviation related businesses on the airfield and increasing

tourism, and other user friendly services to implement at the airport. Below is the list

of goals developed by the Airport Committee.

B. 2017 Goals:

1. Infrastructure updates at the airport; Planning and coast analyses of

Extending water and sewer service to airport.

2. Development of hangars on the airfield, cost to build and revenue potential.

3. Further marketing to attract various air service provides to do business out of

Newport Municipal Airport providing flight training, aircraft sales, tourist and

recreational opportunities.

4. Working with the Destination Newport Committee or consultant for

development of marking plan and tourist packages.

5. Look at expanding possible new user friendly services at the airport.

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City of Newport

Memo

To: Airport Committee

From: Lance Vanderbeck

cc: Spencer Nebel

Date: February 9, 2017

Re: Hangars & Apron

Good afternoon all,

I have contacted Geoff Vaughn of PAE in regards to potential hangar development. With a very preliminary look, Geoff found that we may be able to fit the same size of T-hangars (10) in the spot just south of the current T-hangars. Roughly 225’x50’ construction at a cost of $40 - $50/SF. Some other things that may factor into the cost is a geotechnical investigation if needed - $3,000 - $5,000; topographic survey if needed - $3,000 - $5,000; and design services - $12,000 - $15,000 which includes complete contract document and bidding services. This doesn’t included cost for any additional improvements that may be needed like HMA paving, storm drain improvements, water, electrical, etc… I have included and ground layout for the area by the T-hangars.

Next I have attached a preliminary layout from WH Pacific with what we may get for a new apron layout and spots identified for new hangars. By moving the threshold of runway 2 east of runway 16 it has really opened up the apron potential. I hope you will be as surprised as I was.

Thank you for your time,

Lance Vanderbeck City of Newport Airport Director.

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Administrative Offices 169 SW Coast Hwy. Newport, OR 97365 www.newportoregon.gov 541-574-0603

State of Oregon Aviation Board, Thank you for giving me the opportunity to speak here today. I would like to give a statement of support on behalf of the City of Newport to the State of Oregon Department of Aviation in regards to HB 2075. In recent years’ rural areas of Oregon have seen a steady increase in population and business growth. Newport, for instance, has shared in Oregon’s steady growth with the relocation of NOAA, housing the largest fishing port in Oregon, expansion of OSU marine studies to Newport, and an upward trend in tourism. Making Newport the second largest city on the Oregon coast. A big piece missing from this upward growth is easy user friendly transportation options to and from rural Oregon areas to major metropolitan areas and other rural parts of the state. At a recent ORAVI conference during a rural air service presentation the panel members agreed that despite past attempts Newport would have the best chance at sustainable rural air serve. It has been proven that traditional models of air service have not been successful in rural areas and a new business model is needed. This is a question that we can’t answer without help from the State of Oregon. The City of Newport is ready to help with this endeavor of creating a new business model for sustainable rural air service that will work for Oregon’s rural areas. The City of Newport would like give our support to the State of Oregon Department of Aviation in using funds from HB 2075 to developed a new business model for rural air service in Oregon. Respectfully submitted, Spencer R. Nebel Lance Vanderbeck City of Newport City of Newport City Manager Airport Director ______________________________________________________________________________ Coast Guard City, USA Mombetsu, Japan, Sister City

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