little rock national airport commission · glo’s destin-fort walton beach nonstop service. mr....

LITTLE ROCK MUNICIPAL AIRPORT COMMISSION MEETING AGENDA

March 18, 2016

Denotes action item

CALL THE MEETING TO ORDER APPROVAL OF MINUTES

Minutes of February 16, 2016 monthly meeting

APPROVAL OF CONSENT AGENDA

Discussion of Consent Agenda and Identify any items to be pulled Approval of Consent Agenda Discussion/Approval of any pulled items

Review of Monthly Financials EXECUTIVE DIRECTOR’S REPORT CHAIRMAN’S REPORT STAFF REPORTS

Properties, Planning, and Development Construction Update Properties Update

Airline and Air Service Update Public Affairs and Governmental Relations Update Human Resources and Administration Update Facilities Update Operations Update

ATTORNEY’S REPORT PUBLIC COMMENT (please fill out Public Comment Card available at the sign-in table) (limit 3 minutes per person)

1

LITTLE ROCK MUNICIPAL AIRPORT COMMISSION MEETING MINUTES

February 16, 2016 The Little Rock Airport Commission met in regular session in the Commission Meeting Room, Bill and Hillary Clinton National Airport, Little Rock, Arkansas at 8:30 a.m. on the 16th day of February, 2016. The following members of the Commission were present:

Mme. Stacy Hurst and Messrs. Virgil Miller, Jim Dailey, Jesse Mason, John Rutledge, and Gus Vratsinas.

Also attending were Mmes. Carolyn Witherspoon, Kathy Webb and Messrs. Ronald Mathieu, Bryan Malinowski, Tom Clarke, Allen Williams, Randy Ellison, David Tipton, Charles Jones, Shane Carter, Steve Bingham and others as registered.

The meeting was recorded and the tape is on file in the office of the Executive Director, where it may be examined by any qualified person. Official actions of the Commission were as follows: Chairman Miller called the meeting to order at 8:30 a.m. and noted a quorum was present. EXECUTIVE SESSION Commissioner Mason made a motion for the Commission to adjourn to Executive Session. The motion was seconded by Commissioner Hurst. The Commission adjourned to Executive Session at 8:30 a.m. for the purpose of evaluating the Executive Director’s performance in 2015. The Commission reconvened from Executive Session at 10:19 a.m. Commissioner Dailey made a motion that the Executive Director receive a 3% raise to his base salary, a 5% contribution to his retirement to be distributed with a 2.5% into the 401A Retirement Plan and 2.5% in the 457B Deferred Retirement Plan and a $40,000 bonus. Commissioner Hurst seconded the motion. The motion was approved with a 5 to 1 vote with Commissioner Mason opposing the motion. Chairman Miller recognized and welcomed Ms. Yasmine Mathieu. APPROVAL OF MINUTES Chairman Miller requested approval of the January 19, 2016 Commission meeting minutes. Commissioner Dailey made a motion to approve the January 19, 2016 meeting minutes. The motion was seconded by Commissioner Hurst and unanimously approved by the Commission.

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CONSENT AGENDA Chairman Miller requested approval of the Consent Agenda. On a motion by Commissioner Mason, seconded by Commissioner Vratsinas, the Consent Agenda was unanimously approved. EXECUTIVE DIRECTOR’S REPORT Chairman Miller requested that Mr. Mathieu review the February 2016 Executive Director’s report. Mr. Mathieu highlighted the following items: Mr. Mathieu reported that on January 4, 2016, the Airport entered into an agreement with ADK to conduct a national search for a new CFO. Interviews are expected to start in early April. Mr. Mathieu reported that GLO will start seasonal nonstop service to Destin-Fort Walton Beach, Florida on March 25 and run through September 5, 2016. Mr. Mathieu stated that American has upgraded its current fleet with the newer Embraer 175. The new aircraft holds 76 passengers compared to the 70 passengers on the CRJ900. Mr. Mathieu noted that the annual part 139-certification inspection will be conducted next week. There has been “ZERO DISCREPANCIES” for the past four years. Mr. Mathieu stated that the 4th quarter and year end customer satisfaction surveys for 2015 are in. There was a 94% overall customer satisfaction score compared to an overall airport benchmark of 82%. Mr. Mathieu gave the air service presentation that he presented to “50 For the Future” on February 4. He stated there was a good exchange of ideas, information and many questions from the attendees. Mr. Mathieu noted that he will be more active in the business community this year and plans to schedule many Airport presentations to civic and business groups. Lastly, Mr. Mathieu stated that he will be out of the office March 11-26, 2016. STAFF REPORTS Properties, Planning and Development – Mr. Tom Clarke provided the Commission with the design and construction report which included updates on the following projects: Concourse Renovation Program (CRP), Gate 5 Restroom & Mechanical Improvements, Airfield Drainage Improvements – Phase 1 Construction, Runway 4R RSA Improvements, Taxiway Alpha & Bravo Rehabilitation, Parking and Revenue Control

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System (PARCS) Replacement, Airport Master Plan, Airport Layout Plan and Data Collection, and Electrical Vaults Rehabilitation. Mr. Clarke also provided the Commission with the Sage Partners Activity/Marketing Report. Airline and Air Service Update – Mr. Bryan Malinowski stated that Ms. T.J. Williams was attending the Route Development Forum in San Juan, Puerto Rico and he would be providing the Airline and Air Service Update. Mr. Malinowski reported that the total passenger numbers for the month of January were down .086% for the month. He noted that we had three days of bad weather that resulted in a lot cancellations. Public Affairs and Governmental Relations – Mr. Shane Carter provided the Commission with the Public Affairs and Governmental Relations report. Mr. Carter gave a brief overview of the 2015 Passenger survey. The overall satisfaction with the Airport was 94% for the year. Mr. Carter reported that a draft bill of H.R. 4441, the Aviation Innovation, Reform and Reauthorization Act of 2016, known as the FAA reauthorization, has been released. Mr. Carter added the Airport coordinated media coverage for the announcement of GLO’s Destin-Fort Walton Beach nonstop service. Mr. Carter stated that passengers were kept up-to-date before, during and after the winter weather storm on January 22 through numerous social media, traditional media and website updates. Human Resources and Administration – Mr. Allen Williams provided the Commission with the Human Resources report. The airport began the month of January with 158 employees. There were no new hires, 3 voluntary separations, 2 retirements and 1 involuntary separations. The airport ended the month with 152 employees. There was a 2.6% turnover for the month. Facilities – Mr. Randy Ellison provided the Commission with an update of the activities in the Facilities Department. Mr. Ellison reported that facilities staff responded to the winter weather event on January 21 and 22. During the event staff utilized more than 20 various pieces of snow removal and heavy equipment to maintain runways, taxiways, commercial carrier ramp, parking lots, and curbside. Mr. Ellison also included a snapshot of the baggage handling system for September 2015 through January 2016. Mr. Mathieu stated that staff did an outstanding job during the winter weather event. Chairman Miller also thanked the staff for the excellent job.

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Operations – A report for the cancelled and diverted flights for the month was provided to the Commission by Mr. Charles Jones. Mr. Jones noted that there were 20 cancellations, 14 unscheduled / diverted flights and 9 medical responses with 4 medical transports. Mr. Jones also included the TSA PreCheck report. As of January 2016, there have been 924 appointments and 1,069 walk-ins for a total of 1,993 applications. Attorney's Report – Ms. Witherspoon stated that Counsel attended Committee and Commission meetings, worked with staff on contract reviews, personnel issues, leases, and conducted research for staff on issues. On a motion by Commissioner Dailey the meeting was adjourned at 11:05 a.m. ______________________________________ Virgil L. Miller, Jr., Chairman ______________________________________ Jesse Mason, Secretary

Consent Agenda

March 2016

Little Rock Municipal Airport Commission

Item Number Name of Agenda Item Description of Agenda Item

Finance Committee

Committee Meeting Minutes -

Finance Committee

The Finance Committee requests approval of the February

12, 2016, Finance Committee minutes.

F-16-03-1

February 2016 Financials The Finance Committee requests approval of the February

2016 Financials.

F-16-03-2


Informational

Retirement Plan Review -

Period ending March 1, 2016

The Retirement Committee provided information to the

Commission pertaining to the review of the Retirement Plan

for the period ending March 1, 2016.

I-16-03-1

Actuarial Valuation of the

Defined Benefit Plan

The Retirement Committee provided information to the

Commission regarding the 2015 Actuarial Valuation of the

Defined Benefit Plan.

I-16-03-2


Lease/Consultant Selection Committee

Committee Meeting Minues -

Lease Committee

The Lease Committee requests approval of the February 10,

2016, Lease Committee minutes.

L-16-03-1

Work Authorization No. 58 -

Garver, LLC

The Lease Committee requests approval to authorize the

Executive Director, or his designee, to execute Work

Authorization No. 58 with Garver, LLC for professional

services for the design and bid phase for LIT Runway 4R-

22L Centerline Lighting and Rehabilitation for all labor and

approved expenses not to exceed a total fee amount of

$189,810.00, which includes a fifteen percent (15%) project

contingency.

L-16-03-2

Page 1

Consent Agenda

March 2016



Retirement Committee

Committee Meeting Minutes -


The Retirement Committee requests approval of the

September 9, 2015, Retirement Committee minutes.

R-16-03-1

Adopted by Commission on March 15, 2016

Jesse Mason, Commission Secretary

Virgil L. Miller, Jr., Commission Chairman

Page 2

Little Rock Municipal Airport Commission Finance Committee Meeting

February 12, 2016

The Finance Committee met in the Commission Meeting Room, Bill and Hillary Clinton National Airport, Little Rock, Arkansas at 10:00 a.m. on the 12th day of February 2016. The following members of the Little Rock Municipal Airport Commission (Commission)

were present:

Messrs. Jim Dailey, Virgil Miller and John Rutledge

Also attending were Mme. TJ Williams and Messrs. Ronald Mathieu, Bryan Malinowski,

Allen Williams, Randy Ellison, David Tipton, Tom Clarke, Shane Carter, Charles Jones, Stephen Bingham and others as registered.

The official actions of the Committee were as follows:

The meeting was called to order at 10:00 a.m. by Chairman Dailey, who indicated a quorum was present.

The only item on the agenda was the January 2016 Financials, F-16-02-1. Mr. David Tipton presented the January 2016 Financials and noted the following in regards to the Balance Sheet:

Current Assets for the month ending January 31, 2016, were approximately $28

million.

Restricted Funds totaled approximately $13 million.

Total Assets at month end were approximately $537 million.

Current Liabilities were approximately $2.1 million.

Total Liabilities at month end were approximately $2.1 million.

Total Equity for the month ending January 31, 2016, was approximately $537 million.

At the request of Commissioner Miller, Mr. Mathieu stated that after the audit is concluded staff will make a recommendation to transfer funds into the “Terminal Sinking Fund”. The

goal is to make a deposit into this account once a year.

For the month of January 2016, Mr. Tipton stated that net income from operations was

$941,000 which was more than last year by about $451,000. Total net income that includes non-operating revenue and expenses was about $959,000 which was more than last year by about $500,000. Total operating revenues for the month were approximately

$2.5 million which was more than last year by about $101,000. Total operating expenses for the month were approximately $1.6 million which was less than last year by approximately $350,000.

F-16-03-1

1

Mr. Tipton detailed the following revenue items for January 2016:

Aviation Revenues at $876,000 which were more than last year by about $59,000.

Concession Revenues at $1.1 million were less than last year by approximately $17,000.

Airport Rentals at $305,000 which were more than last year by approximately

$20,000.

Aviation Services at $29,000 which were more than last year by approximately

$20,000.

Miscellaneous Income at $230,000 which was more than last year by $19,000.

At the request of Commissioner Miller, Mr. Mathieu stated that as part of the negotiations

with TAC Air, the Airport receives both rent and fuel flowage revenue. Previously with the former tenant, Central Flying Service, the Airport only received rent revenue. Industry standard best practices were applied with the new negotiations.

At the request of Commissioner Rutledge, Mr. Malinowski stated the rental cars pay the Airport the greater of 10% of gross receipts or a Minimum Annual Guarantee (MAG).

Also, the rental cars pay a $3.50 Consolidated Facility Charge (CFC). In addition, Mr. Malinowski stated that a “Rental Car Capital Improvement Sinking Fund” will hopefully be established in the next few years.

Mr. Tipton detailed the following expenditure items for January 2016:

Professional / Contracted Services at $469,000 which were less than last year by

about $17,000.

Materials / Supplies / Maintenance at $39,000 which was less than last year by

approximately $25,000.

Other Operating Expenditures at $271,000 which were less than last year by about

$8,000.

Additional financial information discussed with the Committee included:

Statement of Cash Flows

Schedule of Deposits

Capital Purchases

Retirement Plan Balances

Current Accounts Receivable

Direct Airport Payments to Consultants

On a motion by Commissioner Miller, seconded by Commissioner Rutledge, the January 2016 Financial Statements were unanimously approved.

F-16-03-1

2

On a motion by Commissioner Rutledge, the meeting was adjourned at 10:47 a.m.

___________________________________________

Jim Dailey, Finance Committee Chairman

___________________________________________ Bryan Malinowski, Deputy Executive Director

___________________________________________ David Tipton, Acting Director – Finance

F-16-03-1

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for the Month Ended February 29, 2016

ASSETS

CURRENT ASSETS:

Revenue Fund (1)27,136,768$

Construction Fund (2)98,707

Accounts Receivable - Trade (3)697,405

Other Accounts Receivable -

Prepaid Expenses (4)280,938

TOTAL CURRENT ASSETS 28,213,818$

RESTRICTED FUNDS:

FAA Grants Receivable 18,605$

Other Grants Receivable -

Revenue Bond Funds 1,261

PFC Receivable 379,297

PFC Fund 12,083,429

TOTAL RESTRICTED FUNDS 12,482,592$

Land 66,182,688$

Building 403,117,300

Equipment 20,567,805

FY 2016 Capital Purchases (Attachment A) 122,326

Construction in Progress 9,424,751

TOTAL FIXED ASSETS 499,414,870$

TOTAL ASSETS 540,111,280$

(3) Includes Accounts Receivable Accrued.

BILL AND HILLARY CLINTON NATIONAL AIRPORT

BALANCE SHEET

(unaudited)

(1) The establishment of the Revenue Fund is provided by the 1994 Master Trust Indenture. As provided by the Indenture, all funds

permitted by law are deposited into the Revenue Fund for payment of Airport Costs. The Indenture requires the Airport to maintain a

reserve equal to 3 months (25%) of annual operating costs .

(2) Includes .375 Aviation Fuel Sales Tax distributed by Dept. of Finance & Administration pursuant to Ark. Legislative Act 840.

(4) Includes: Various insurance policies (paid annually each October) and other prepayments.

F-16-03-2


LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Accounts Payable 1,072,905$

Accounts Payable - Construction in Progress -

Other Accounts Payable 253,495

Accrued Payroll 802,262

Payroll Taxes Withheld & Accrued 149,307

Employee Retirement Fund Payable 100,292

Group Insurance Payable 14,606

Sales Tax Payable ( Parking) 25,847

Reserve for Defined Benefit Plan (5)50,000

TOTAL CURRENT LIABILITIES 2,468,714$

FUNDED DEBT:

Revenue Bonds Payable -$

Deferred Financing on Revenue Bonds -

TOTAL FUNDED DEBT -$

ACCRUED LIABILITIES:

Accrued Interest on Revenue Bonds -$

TOTAL ACCRUED LIABILITIES -$

TOTAL LIABILITIES 2,468,714$

EQUITY:

Retained Earnings 125,592,644$

PFC Revenue and Interest 13,156,267

Accumulated Depreciation 175,078,488

Grants in Aid 222,914,246

Contributions-Other 900,921

-

TOTAL EQUITY 537,642,566$

TOTAL LIABILITIES AND EQUITY 540,111,280$

(5) To provide a reserve balance for the Defined Benefit Plan. Required by the Retirement Committee, June 2009.

(unaudited)


BALANCE SHEET

F-16-03-2

FUND PURPOSE INTEREST RATE ACCOUNT BALANCE

REVENUE FUND

First Security Bank Operating Checking 0.64% 20,211,288

First Security Bank Terminal Sinking Fund (1)0.64% 6,841,024

First Security Bank Payroll Checking 0.64% 84,455

TOTAL REVENUE FUND 27,136,768$

CONSTRUCTION FUND

First Security Bank Construction Checking 98,707

TOTAL CONSTRUCTION FUND 98,707$

REVENUE BOND FUND

Regions Trust 2003 Bond Funds 0.01% -

Regions Trust 2007 Bond Funds 0.01% 1,261

TOTAL REVENUE BOND FUND 1,261$

PASSENGER FACILITY FUND

First Security Bank PFC Checking 0.64% 12,083,429

TOTAL PASSENGER FACILITY FUND 12,083,429$

TOTAL ALL ACCOUNTS: 0.55% 39,320,165

DISTRIBUTION OF CASH ASSETS

First Security Bank 39,318,905

Regions Trust 1,261

TOTAL ALL BANKS: 39,320,167$

Pledged Security:

For February 2016, First Security pledged securities totaled $57,995,267 (148%).

(1) - Funds earkmarked for future terminal expansion.


SCHEDULE OF DEPOSITS


Cash funds maintain pledged securities as collateral for deposits as identified in Ark. Code Ann. §23-47-401(a) and those set forth in Ark. Code Ann. §19-8-203. The total fair value of the

pledged collateral must be at least equal to 120% of the total amount of cash funds on deposit with the financial institution that is in excess of current FDIC insurance coverage of $250,000.

F-16-03-2

Current Month Year to Date

Cash flows from operating activities

Receipts from airlines and tenants 2,671,797$ 4,907,400$

Other receipts (1)88,232 168,171

Payments to suppliers (348,902) (1,122,173)

Payments for personnel services (912,048) (2,003,391)

Net cash provided by operating activities 1,499,079$ 1,950,007$

Cash flows from capital and related financing activities

Federal/state contributed capital, grants in aid 2,825$ 1,460,062$

Acquisition of capital assets (1,911,648) (1,986,991)

Proceeds from sale of capital assets - -

Principal paid on long-term debt - -

Passenger facility charges receipts 305,368 622,427

Interest paid on long-term debt - -

Non-operating expense - -

Net cash (used in) capital and related financing activities (1,603,455)$ 95,498$

Cash flows from investing activities

Interest on investments 15,892$ 29,330$

Gain/(Loss) Sale of Investments - -

Net cash provided by (used in) investing activities 15,892$ 29,330$

Net increase (decrease) in cash and cash equivalents (88,484)$ 2,074,835$

Cash and cash equivalents, beginning of period 39,408,651$ 37,245,332$

Cash and cash equivalents, end of period; * 39,320,167$ 39,320,167$

* Includes restricted and unrestricted cash.


(unaudited)

STATEMENTS OF CASH FLOWS


(1) Includes Commission on Fuel Sales, Aviation Fuel Tax Receipts, Services Sold, Fingerprinting and Badging.

F-16-03-2


STATEMENT OF REVENUES AND EXPENSES

(unaudited)


CURRENT

MONTH

ACTUAL

CURRENT

MONTH

BUDGET

BETTER /

(WORSE)

ACT-BUD

CURRENT

MONTH

PRIOR YR

BETTER /

(WORSE)

ACT-PY

OPERATING REVENUES

Aviation Revenue

Landing Fees (1) 400,502 393,635 6,867 389,705 10,797

Airline Space Rentals 435,174 401,289 33,885 385,161 50,013

Other Airline Fees & Charges 41,251 45,833 (4,582) 41,504 (253)

Airline Incentives (2)(17,118) - (17,118) (7,096) (10,022)

Subtotal Aviation Revenues 859,809$ 840,757$ 19,052$ 809,274$ 50,535$

% Compared to Current Month Actual 2% 6%

Concession Revenues

Automobile Parking (1)683,443 636,975 46,468 646,810 36,633

Rental Car Operations (1) (3)300,533 318,006 (17,473) 293,271 7,262

Restaurant and Lounge (1) 71,214 59,269 11,945 72,326 (1,112)

Ground Transportation 7,956 5,342 2,614 5,233 2,723

Terminal Advertising 18,240 14,600 3,640 14,306 3,934

Vending 3,013 2,995 18 2,953 60

Subtotal Concession Revenues 1,084,399$ 1,037,187$ 47,212$ 1,034,899$ 49,500$


Airport Rentals

Terminal Office Space 22,714 20,960 1,754 20,977 1,737

Building Leases 95,777 97,763 (1,986) 119,539 (23,762)

Land Leases 158,578 158,830 (252) 150,982 7,596

Subtotal Airport Rentals 277,069$ 277,553$ (484)$ 291,498$ (14,429)$

% Compared to Current Month Actual 0% -5%

Aviation Services

Airfield Operations 6,450 2,750 3,700 3,700 2,750

Fuel Commissions and Sales (4)20,899 17,999 2,900 10,426 10,473

Subtotal Aviation Services 27,349$ 20,749$ 6,600$ 14,126$ 13,223$


Miscellaneous

Rental Car Consolidated Facility Charges (CFC) 182,312 150,754 31,558 161,259 21,053 Airport Services Sold (5)

18,618 21,730 (3,112) 28,685 (10,067)

Leased Equipment 5,249 5,000 249 5,256 (7)

Aviation Fuel Tax (6)23,017 26,500 (3,483) 173,553 (150,536)

Miscellaneous Income 12,820 480 12,340 400 12,420

Subtotal Miscellaneous Services 242,016$ 204,464$ 37,552$ 369,153$ (127,137)$


TOTAL OPERATING REVENUES 2,490,642$ 2,380,710$ 109,932$ 2,518,950$ (28,308)$

5% -1%

(1) Reflects passenger traffic impact. Landing Fees are also effected by landing weights.

(2) Reflects incentive credits for GLO (2016) and Envoy Air (2015).

(3) Includes percentage rent as well as fixed facility rents.

(4) 2016 reflects the TAC Air agreement resulting in both rent and fuel flowage revenue. The previous agreement with Central Flying Service produced

only rent revenue.

(5) Reflects reimbursement of operating cost (i.e. utility services, curbside services, etc.).

(6) 2015 reflects a payment from the State of Arkansas, as a result of a three year adjustment from fuel vendors, and the 3/8 cent City of LR Aviation Fuel Tax

for the period Jan. 2012 - July 2015.

F-16-03-2

CURRENT

MONTH

ACTUAL

CURRENT

MONTH

BUDGET

BETTER /

(WORSE)

ACT-BUD

CURRENT

MONTH

PRIOR YR

BETTER /

(WORSE)

ACT-PY

OPERATING EXPENDITURES

Salaries & Benefits

Salaries & Wages 576,911 560,319 (16,592) 644,884 67,973

Employee Benefits 245,673 257,235 11,562 270,988 25,315

Subtotal Salaries & Benefits 822,584$ 817,554$ (5,030)$ 915,872$ 93,288$


Professional / Contracted Services

Professional Fees 30,144 39,942 9,798 9,575 (20,569)

Maintenance & Repairs 68,875 75,051 6,176 71,362 2,487

Facilities & Grounds Contracts 15,637 14,762 (875) 17,331 1,694

Police & Security (7)167,311 198,411 31,100 189,571 22,260

ARFF 115,216 119,668 4,452 114,633 (583)

Technical Support Contracts (8)31,823 13,939 (17,884) 18,319 (13,504)

Other Contracts 11,015 12,650 1,635 10,887 (128)

Subtotal Prof./Contract Services 440,021$ 474,423$ 34,402$ 431,678$ (8,343)$

% Compared to Current Month Actual -7% 2%

Materials / Supplies / Maintenance

Office Supplies 7,250 3,881 (3,369) 3,431 (3,819)

Facilities & Grounds 23,033 35,974 12,941 21,030 (2,003)

Uniforms 1,252 400 (852) 251 (1,001)

Airfield Supplies 3,447 6,500 3,053 3,280 (167)

Technical/Trade Supplies 4,099 1,165 (2,934) 2,265 (1,834)

Vehicle/Fuel Supplies 7,232 3,700 (3,532) 1,234 (5,998)

Technology Supplies (IT/ET) 5,109 6,500 1,391 6,419 1,310

Subtotal Materials & Supplies 51,422$ 58,120$ 6,698$ 37,910$ (13,512)$ % Compared to Current Month Actual -12% 36%

Other Operating Expenditures

Utilities 138,948 188,422 49,474 155,525 16,577

Employee Relations 1,074 2,313 1,239 807 (267)

Public Relations 9,854 15,627 5,773 10,018 164

Furniture, Fixtures, and Equipment (FF&E) 1,697 1,650 (47) 5,678 3,981

Insurance (9)29,365 37,500 8,135 31,076 1,711

Travel, Training & Meeting 13,415 17,657 4,242 26,247 12,832

Permits, Licenses & Fees 19,305 22,933 3,628 18,560 (745)

Dues & Subscriptions 1,844 2,610 766 3,445 1,601

Airport Services 3,800 3,800 - 3,400 (400)

Equipment Rentals 3,082 1,700 (1,382) 1,848 (1,234)

Other Operating Expenses 1,158 3,410 2,252 3,070 1,912

Subtotal Other Operating Exp. 223,542$ 297,622$ 74,080$ 259,674$ 36,132$ % Compared to Current Month Actual -25% -14%

TOTAL OPERATING EXPENDITURES 1,537,569$ 1,647,719$ 110,150$ 1,645,134$ 107,565$

-7% -7%

NET INCOME (LOSS) FROM OPERATIONS 953,073$ 732,991$ 220,081$ 873,816$ 79,257$ % Compared to Current Month Actual 30% 9%

(7) 2016 Police was down $22K/month due to reduction in staff.

(8) 2016 includes the quarterly payment for Passur flight tracking service ($16K).

F-16-03-2

CURRENT

MONTH

ACTUAL

CURRENT

MONTH

BUDGET

BETTER /

(WORSE)

ACT-BUD

CURRENT

MONTH

PRIOR YR

BETTER /

(WORSE)

ACT-PY

CAPITAL EXPENDITURES

Capital Purchases 46,982 536,037 489,055 216,567 (169,585)

Capitalized Purchases (9)(46,982) (536,037) (489,055) (216,567) 169,585

TOTAL CAPITAL PURCHASES - - - - -

NON OPERATING REVENUES / (EXPENDITURES)

Investment Income 15,892 12,500 3,392 9,956 5,936

Other Non Operating Income 1,178 6,250 (5,072) 1,182 (4)

Gain/(Loss) on Sale of Assets - - - - -

Gain/(Loss) on Sale of Investments - - - - -

Interest Expense on Bonds - - - (37,225) 37,225

Other Non Operating Expenses - - - (10,657) 10,657

INCOME (LOSS) NON OPERATING 17,070 18,750 (1,680) (36,744) 53,814

TOTAL NET INCOME (LOSS) 970,143$ 751,741$ 218,401$ 837,072$ 133,071$ % Compared to Current Month Actual 29% 16%

(9)

REIMBURSEMENT OF HISTORIC COST:

Area 1 Land Acquisition (a)275,000$ 275,000$ -$ -$ 275,000

Reimbursement of Legacy Cost (b)175,000 175,000 - 270,000 (95,000)

Series 2007B Project Funds (c)- - - - -

ADJUSTED NET INCOME (LOSS) 1,420,143$ 1,201,741$ 218,401$ 1,107,072$ 313,071$


(a) Reflects the unanticipated reimbursement of the historic Area 1 land acquisition costs (approximately $8.7 million eligible cost). FAA has agreed

to reimbursement of Area 1 costs through AIP Entitlement grants, in consideration of priorities of other eligible projects.

(b) Transfer from PFC Account - Reimbursement of legacy projects, PFC 7.

(c) Funds previously dedicated to fund obligations of the Supermarine lease. Released in May 2015 but pledged to pay the debt service associated

with the Series 2007B bonds.

Capital purchases identified on the approved 2016 Capital Purchases are detailed in Attachment A, which follows the YTD Income Statement.

F-16-03-2


STATEMENT OF REVENUES AND EXPENSES

(unaudited)

Year to date (YTD) through February 29, 2016

2016

ACTUAL

2016

BUDGET

BETTER /

(WORSE)

ACT-BUD

2015

ACTUAL

BETTER /

(WORSE)

ACT - PY

OPERATING REVENUES

Aviation Revenue

Landing Fees (1) 807,202 819,800 (12,598) 782,107 25,095

Airline Space Rentals 869,532 802,578 66,954 770,679 98,853

Other Airline Fees & Charges 87,441 91,666 (4,225) 86,994 447

Airline Incentives (2)(28,781) - (28,781) (13,696) (15,085)

Subtotal Aviation Revenues 1,735,394$ 1,714,044$ 21,350$ 1,626,084$ 109,310$ % Compared to Current Month Actual 1% 7%

Concession Revenues

Automobile Parking (1)1,355,965 1,281,575 74,390 1,330,533 25,432

Rental Car Operations (1) (3)600,440 637,021 (36,581) 587,238 13,202

Restaurant and Lounge (1) 138,027 124,957 13,070 152,653 (14,626)

Ground Transportation 33,924 29,193 4,731 28,952 4,972

Terminal Advertising 36,164 29,200 6,964 32,452 3,712

Vending 6,138 6,001 137 6,078 60

Subtotal Concession Revenues 2,170,658$ 2,107,947$ 62,711$ 2,137,906$ 32,752$ % Compared to Current Month Actual 3% 2%

Airport Rentals

Terminal Office Space 45,428 41,920 3,508 41,955 3,473

Building Leases (4)214,715 194,697 20,018 235,364 (20,649)

Land Leases 321,554 311,252 10,302 298,546 23,008

Subtotal Airport Rentals 581,697$ 547,869$ 33,828$ 575,865$ 5,832$ % Compared to Current Month Actual 6% 1%

Aviation Services

Airfield Operations 11,050 5,500 5,550 5,345 5,705

Fuel Commissions and Sales (5)44,933 45,358 (425) 17,638 27,295

Subtotal Aviation Services 55,983$ 50,858$ 5,125$ 22,983$ 33,000$ % Compared to Current Month Actual 10% 144%

Miscellaneous

Rental Car Consolidated Facility Charges (CFC) 365,512 317,126 48,386 336,959 28,553

Airport Services Sold (6) 38,654 43,410 (4,756) 48,965 (10,311)

Leased Equipment 10,449 10,000 449 10,456 (7)

Aviation Fuel Tax (7)43,817 53,000 (9,183) 182,753 (138,936)

Miscellaneous Income 13,517 960 12,557 1,100 12,417

Subtotal Miscellaneous Services 471,949$ 424,496$ 47,453$ 580,233$ (108,284)$ % Compared to Current Month Actual 11% -19%

TOTAL OPERATING REVENUES 5,015,681$ 4,845,214$ 170,467$ 4,943,071$ 72,610$ 4% 1%

(1) Reflects passenger traffic impact. Landing Fees are also effected by landing weights.

(2) Reflects incentive credits for GLO (2016) and Envoy Air (2015).

(3) Includes percentage rent as well as fixed facility rents.

(4) Includes Blue Cross Blue Shield rent $37K/mo. in 2015.

(5) 2016 reflects the TAC Air agreement resulting in both rent and fuel flowage revenue. The previous agreement with Central Flying Service produced

only rent revenue.

(6) Reflects reimbursement of operating cost (i.e. utility services, curbside services, etc.)

(7) 2015 reflects a payment from the State of Arkansas, as a result of a three year adjustment from fuel vendors, and the 3/8 cent City of LR Aviation Fuel Tax

for the period Jan. 2012 - July 2015.

F-16-03-2

2016

ACTUAL

2016

BUDGET

BETTER /

(WORSE)

ACT-BUD

2015

ACTUAL

BETTER /

(WORSE)

ACT - PY

OPERATING EXPENDITURES

Salaries & Benefits

Salaries & Wages (8)1,157,414 1,120,637 (36,777) 1,459,638 302,224

Employee Benefits (8)470,385 520,719 50,334 561,264 90,879

Subtotal Salaries & Benefits 1,627,799$ 1,641,356$ 13,557$ 2,020,902$ 393,103$ % Compared to Current YTD Actual -1% -19%

Professional / Contracted Services

Professional Fees 59,952 99,509 39,557 67,164 7,212

Maintenance & Repairs 131,669 148,802 17,133 144,770 13,101

Facilities & Grounds Contracts 30,699 29,104 (1,595) 31,065 366

Police & Security (9)338,274 396,822 58,548 383,410 45,136

ARFF 221,716 241,986 20,270 226,542 4,826

Technical Support Contracts 48,036 38,140 (9,896) 42,280 (5,756)

Other Contracts 78,550 25,300 (53,250) 22,025 (56,525)

Subtotal Prof./Contract Services 908,896$ 979,663$ 70,767$ 917,256$ 8,360$ % Compared to Current YTD Actual -7% -1%

Materials / Supplies / Maintenance

Office Supplies 13,373 8,462 (4,911) 19,811 6,438

Facilities & Grounds 39,917 64,073 24,156 40,477 560

Uniforms 3,350 2,152 (1,198) 1,512 (1,838)

Airfield Supplies 6,870 14,100 7,230 8,372 1,502

Technical/Trade Supplies 5,771 2,330 (3,441) 10,956 5,185

Vehicle/Fuel Supplies 11,780 7,400 (4,380) 10,231 (1,549)

Technology Supplies (IT/ET) 9,709 8,400 (1,309) 11,082 1,373

Subtotal Materials & Supplies 90,770$ 106,917$ 16,147$ 102,441$ 11,671$ % Compared to Current YTD Actual -15% -11%

Other Operating Expenditures

Utilities 276,977 383,406 106,429 329,870 52,893

Employee Relations 2,886 4,075 1,189 1,200 (1,686)

Public Relations 13,601 32,504 18,903 13,588 (13)

Furniture, Fixtures, and Equipment (FF&E) 3,789 2,550 (1,239) 5,678 1,889

Insurance (10)60,765 70,000 9,235 62,152 1,387

Travel, Training & Meeting 30,959 41,256 10,297 39,893 8,934

Permits, Licenses & Fees 37,363 43,467 6,104 35,486 (1,877)

Dues & Subscriptions 52,259 51,096 (1,163) 36,321 (15,938)

Airport Services 7,600 7,600 - 6,800 (800)

Equipment Rentals 3,777 3,400 (377) 4,046 269

Other Operating Expenses 4,164 5,300 1,136 3,251 (913)

Subtotal Other Operating Exp. 494,140$ 644,654$ 150,514$ 538,285$ 44,145$ % Compared to Current YTD Actual -23% -8%

TOTAL OPERATING EXPENDITURES 3,121,605$ 3,372,590$ 250,985$ 3,578,884$ 457,279$

-7% -13%

NET INCOME (LOSS) FROM OPERATIONS 1,894,076$ 1,472,624$ 421,452$ 1,364,187$ 529,889$ % Compared to Current Month Actual 29% 39%

(8) 2015 includes one additional pay period.

(9) 2016 Police was down $22K/month due to reduction in staff.

F-16-03-2

2016

ACTUAL

2016

BUDGET

BETTER /

(WORSE)

ACT-BUD

2015

ACTUAL

BETTER /

(WORSE)

ACT - PY

CAPITAL EXPENDITURES

Capital Purchases 122,326 1,072,074 1,194,400 216,567 (94,241)

Capitalized Purchases (10)(122,326) (1,072,074) (1,194,400) (216,567) 94,241

TOTAL CAPITAL PURCHASES - - - - -

NON OPERATING REVENUES / (EXPENDITURES)

Investment Income 29,330 25,000 4,330 20,278 9,052

Other Non Operating Income 5,752 12,500 (6,748) 2,612 3,140

Gain/(Loss) on Sale of Assets - - - -

Gain/(Loss) on Sale of Investments - - -

Interest Expense on Bonds - - - (74,450) 74,450

Other Non Operating Expenses - (5,000) 5,000 (15,657) 15,657

INCOME (LOSS) NON OPERATING 35,082 32,500 2,582 (67,217) 102,299

TOTAL NET INCOME (LOSS) 1,929,158$ 1,505,124$ 424,034$ 1,296,970$ 632,188$

% Compared to Current YTD Actual 28% 49%

(10)

REIMBURSEMENT OF HISTORIC COST:

Area 1 Land Acquisition (a)550,000$ 550,000$ -$ 1,752,513$ (1,202,513)

Reimbursement of Legacy Cost (b)350,000 350,000 - 540,000 (190,000)

Series 2007B Project Funds (c)- - - - -

ADJUSTED NET INCOME (LOSS) 2,829,158$ 2,405,124$ 424,034$ 3,589,483$ (760,325)$


(a) Reflects the unanticipated reimbursement of the historic Area 1 land acquisition costs (approximately $8.7 million eligible cost). FAA has agreed to reimbursement of Area 1 costs through AIP Entitlement grants, in consideration of priorities of other eligible projects.Reflects the unanticipated reimbursement of the historic Area 1 land acquisition costs (approximately $8.7 million eligible cost). FAA has agreed

to reimbursement of Area 1 costs through AIP Entitlement grants, in consideration of priorities of other eligible projects.


(c) Funds previously dedicated to fund obligations of the Supermarine lease. Released in May 2015 but pledged to pay the debt service associated

with the Series 2007B bonds.

Authorized Reimbursed Outstanding

Area 1 Land Acquisition (a)7,873,684$ 4,539,929$ 3,333,755$

Reimbursement of Legacy Cost (b)9,595,910 4,866,743 4,729,167

TOTAL 17,469,594$ 9,406,672$ 8,062,922$


THROUGH FEBRUARY 29, 2016

(a) Reflects the unanticipated reimbursement of the historic Area 1 land acquisition costs (approximately $8.7 million eligible cost).

FAA has agreed to reimbursement of Area 1 costs through AIP Entitlement grants, in consideration of priorities of other eligible

Capital purchases identified on the approved 2016 Capital Purchases are detailed in Attachment A.

CUMULATIVE REIMBURSEMENT OF HISTORIC COST

F-16-03-2


Investment ReportMarch 9, 2016

Pat D. Moon, CFAManaging Principal

11300 Cantrell Road, Suite 200, Little Rock, AR 72212501-663-7055 or 866/663-7055

[email protected]

I-16-03-1

-30%

-20%

-10%

0%

10%

20%

YTD 1 Year 3 Years 5 Years

-6.3%

-15.1%

4.8% 4.2%

-2.8%-6.2%

10.7% 10.1%

-7.0%

-15.0%

5.7% 6.1%

-8.1%

-15.2%

0.4% 0.6%

Stocks S&P 500 Index Russell 2000 Index EAFE Intl. Index

-15%

-10%

-5%

0%

5%

10%


-3.6%

-9.5%

4.1% 4.0%

Total Portfolio

-10%

-5%

0%

5%

10%


-0.4%

-4.7%

-0.2%

2.3%0.5% 0.9% 0.9% 1.1%

Fixed Income Merrill Lynch Govt/Corp 1-3 yr Index

Total Portfolio

Stocks

Fixed Income

Twelve Month Cash Flow

2

Large U.S. Stocks International Stocks

Investment Performance – Periods ending March 1, 2016



Beginning Portfolio Value $ 1,308,961.23

Additions 142,435.93

Withdrawals (161,251.06)

Gain/(Loss) (150,445.76)

Income 21,446.84

Ending Portfolio Value $ 1,161,147.18

Includes Accrued Income

I-16-03-1

Top 5 HoldingsAllerganUPSUnited TechnologiesAlphabet (Google)AppleVisa

Stocks

Large Stocks54%

Small/Mid Stocks

8%

Fixed Income22%

Cash6%

International Stocks

10%

Total Portfolio

$1,184,260

LRMAC Investment Policy Range

Cash 0-10%Fixed Income 20-80%Stocks 20-80%

Fixed Income

Yield to Maturity 6.6 %

Duration 3.9 Yrs.

3

Portfolio Characteristics as of March 1, 2016



I-16-03-1

Economic CommentaryRecession Talk – Questions to be Answered

Will Consumer Spending Drag Up Manufacturing? Companies are borrowing. Will they spend ?

Wages are rising….finally. Will consumers spend? Oil co. reactions dramatic. Will oil industry stabilize?

*Consumer spending is 88% of GDP

Source: Charles Schwab4

I-16-03-1

Recession Not Likely

5

I-16-03-1

% of Portfolio Invested in Stocks

55% 59% 41%

U.S. Stocks: S&P 500 IndexMarch 2008 – March 1, 2016

54% 67% 69% 71% 70%

LRNA Defined Benefit PlanAsset Allocation Strategy

LRNA Investment Policy Range

Cash 0-10%Fixed Income 20-80%Stocks 20-80%

67%

6

I-16-03-1

57%70% 73%% Invested

in Stocks

12/31/2014 12/31/2015

Stock Sales

Stock Buys

(Major Sales/Buys)

41%

$36,615

$40,640

$51,278$153,555$168,911

$151,794

43%45%

LRNA Defined Benefit PlanAsset Allocation Strategy

U.S. Stocks: S&P 500 IndexJanuary 2014 – March 1, 2016

7

12/31/2013

I-16-03-1

LITTLE ROCK NATIONAL AIRPORT

DEFINED BENEFIT RETIREMENT PLAN

ACTUARIAL STUDY

AS OF JANUARY 1, 2016

Osborn, Carreiro & Associates, Inc. ACTUARIES ● CONSULTANTS ● ANALYSTS

124 West Capitol Avenue, Suite 1690

Little Rock, AR 72201 (501)376-8043

I-16-03-2

Osborn, Carreiro & Associates, Inc. One Union National Plaza, Suite 1690 124 West Capitol Avenue

ACTUARIES ● CONSULTANTS ● ANALYSTS Little Rock, Arkansas 72201

(501)376-8043 fax (501)376-7847

March 3, 2016 Retirement Committee Little Rock National Airport Defined Benefit Retirement Plan Bill and Hillary Clinton National Airport Little Rock, AR 72202-4489 Gentlemen: This report presents the results of our actuarial valuation of the assets and liabilities of the Little Rock National Airport Defined Benefit Retirement Plan as of January 1, 2016. The purpose of this report is to evaluate the funded status of the Retirement Plan. A summary of the results of our calculations follows:

1/1/2014 1/1/2015 1/1/2016

Number in Plan a) Active Members 2 1 0b) Retirees & Beneficiaries 8 9 9c) Terminated Vested 0 0 0 Salary of actives in Plan $ 76,232 $ 45,731 $ 0 Plan Assets $ 1,355,234 $ 1,303,085 $ 1,256,152 Unfunded Present Value of Projected Benefits $ 8,725 $ 0 $ 55,315 Level Contribution to pay off the Unfunded Present Value of 2014 2015 2016 Projected Benefits: By end of year $ 8,725 $ 0 $ 55,315 In 5 years (2 years for 2014) $ 4,826 $ 0 $ 13,491

I-16-03-2

Retirement Committee - page 2 Osborn, Carreiro & Associates, Inc. March 3, 2016 ACTUARIES ● CONSULTANTS ● ANALYSTS

Current Status of the Plan The value of the projected benefits promised under the plan is more than the plan assets as of January 1, 2016. A contribution of $13,491 per year will pay off the Unfunded in 5 years. Review of Funding History At January 1, 1989, the Unfunded Present Value of Projected Benefits was $357,821. At that time the airport decided to pay this amount over a 10 year period and contributed about $51,000 for eight years. The plan was expected to be completely funded by 1999. The Unfunded amount is now $55,315. Lower than expected investment returns over the last year have increased the Unfunded. Outlook for the Future The plan has a small Unfunded benefits under the current assumptions due to investment losses in 2015. However, these calculations are sensitive to the assumptions used. The table below shows the amount of Unfunded Present Values at some different interest rates: Assumed investment return 8.00% 7.00% 6.00% 5.00% 4.00% Unfunded Present Value $ 0 $ 55,315 $ 171,365 $ 306,614 $ 465,379

If the Airport was going to terminate this plan and purchase paid-up annuities from an insurance company more funds would be needed. This is because current annuity purchase rates assume about a 2.5% to 3.0% investment return. If the Airport is going to let this plan simply run along, you could consider leaving the plan slightly underfunded and put funds into it as needed in the future. This would help keep the plan from becoming overfunded. (If the plan becomes overfunded, it may be difficult to recover the excess funds or the excess may have to go to the plan participants.) You have set aside about $50,000 in case you need to apply more funds to the Defined Benefit Retirement Plan.

I-16-03-2

Retirement Committee - page 3 Osborn, Carreiro & Associates, Inc. March 3, 2016 ACTUARIES ● CONSULTANTS ● ANALYSTS

Governmental Accounting Standards There were new requirements beginning last year for the Governmental Accounting Standards, Statements 67 and 68 (often referred to as GASB 67 and 68). These new standards may require additional disclosures for your audit. It is our understanding that at this time the auditor does not believe these additional disclosures are significant enough to make those entries. Qualifications It is important to note that the amount of Unfunded Present Value may vary from year to year. The calculation of the present values involves several assumptions and if actual events (i.e., actual turnover, salary increases, investment returns) differ from the assumptions, the present values will differ from those projected. This report is based on the participant and financial data supplied by the Airport. We did not audit this information, although we did review it for reasonableness and consistency. The purpose of this report is to assist the Airport in evaluating the funded status of this plan and determining the amount of funding. This report is not intended for any other purpose or for use by persons who are not familiar with such matters. I look forward to discussing this report with you in more detail at your convenience. In the meantime, if you have any question or comments, please let me know. Sincerely,

Jody Carreiro, ASA, MAAA, EA Actuary

I-16-03-2

TABLE OF CONTENTS

Exhibit 1

CONTRIBUTIONS

Exhibit 2

COSTS AND LIABILITIES

Exhibit 3

SUMMARY OF FINANCIAL INFORMATION

Exhibit 4

PARTICIPANT DATA

Exhibit 5 SUMMARY OF THE PLAN’S PROVISIONS

Exhibit 6

ACTUARIAL METHODS AND ASSUMPTIONS

I-16-03-2

1

EXHIBIT 1

Contributions The following contribution level reflects the annual payment needed to pay off the Unfunded Present Value of Projected Benefits (see Exhibit 2) over various time periods.

Contribution required to pay off the Unfunded Present Value of Projected Benefits.

2014

2015

2016 1. By end of year $ 8,725 $ 0 $ 55,315 2. In 5 years $ 4,826 $ 0 $ 13,491 (2 years for 2014)

I-16-03-2

2

EXHIBIT 2

Costs and Liabilities 1/1/2014 1/1/2015 1/1/2016 A. Present Value of Projected Benefits 1. Active Lives Regular Retirement Benefits $ 170,784 $ 66,448 $ 0 Voluntary Termination Benefits 4,156 0 0 TOTAL ACTIVE LIVES $ 174,940 $ 66,448 $ 0 2. Inactive Lives Retirees $ 1,127,495 $ 1,124,007 $ 1,254,758 Beneficiaries 61,524 59,097 56,709 Terminated Vesteds 0 0 0 Offset for Money Purchase 0 0 0 Pension Plan not received TOTAL INACTIVE LIVES $ 1,189,019 $ 1,183,104 $ 1,311,467 3. Total Present Value $ 1,363,959 $ 1,249,552 $ 1,311,467 B. Assets $ 1,355,234 $ 1,303,085 $ 1,256,152 C. Unfunded Present Value of

Projected Benefits $ 8,725 $ 0 $ 55,315

I-16-03-2

3

EXHIBIT 3

Summary of Financial Information

Plan Year Ending December 31, 2013 2014 2015 A. Income 1. Contributions Employee $ 0 $ 0 $ 0 Employer 0 0 0 Transfer from MPPP 0 0 142,436 2. Investment Income Interest & Dividends 30,239 23,863 22,558 Realized Gains 7,011 1,903 - 30,282 Unrealized Appreciation 178,296 64,908 - 21,343 Investment Expenses 0 0 0 Subtotal 215,546 90,674 - 29,067 Total Income $ 215,546 $ 90,674 $ 113,369 B. Expenses 1. Administrative $ 0 $ 0 $ 0 2. Monthly Benefits 142,983 142,823 160,302 3. Lump Sum Benefits 0 0 0 Total Expenses $ 142,983 $ 142,823 $ 160,302

I-16-03-2

4

EXHIBIT 3 (continued) 12/31/13 12/31/14 12/31/15 C. Assets (at market value): 1. Short Term Cash $ - 277 $ - 109 $ - 137 Money Market and Others 57,914 12,164 270,232 2. Bonds Government 0 0 0 Corporate 179,632 203,442 132,287 3. Equities Common Stock 720,027 778,916 626,979 4. Mutual Funds 396,820 307,340 225,515 5. Other Contribution Receivable 0 0 0 Other Receivable 1,118 1,332 1,276 Payables 0 0 0 Other 0 0 0 Total Assets $ 1,355,234 $ 1,303,085 $ 1,256,152 D. Ratio of Assets to Annual Expenses: 9.5 9.1 7.8 E. Investment Return: 17.8% 7.1% - 2.2%

I-16-03-2

5

EXHIBIT 4

Participant Data

ACTIVE PARTICIPANTS: None

RETIREES AND BENEFICIARIES:

Age at Current Age Retirement Sex Option Monthly Benefit

62 61 M Joint and 75% 1,561.86 69 63 M Joint and 100% 2,697.00 88 67 M Joint and 100% 226.80 70 64 M Joint and 2/3rds 2,639.65 78 58 F Life only 792.28 86 75 M 15 year cert & life 2,288.74 69 62 M Joint and 100% 1,566.59 84 65 F Joint and 50% 864.40 63 62 M Joint and 100% 309.96

I-16-03-2

6

EXHIBIT 5

Principle Provisions of the Plan

EFFECTIVE DATE: Original City of Little Rock Pension Plan (effective 7/1/60) was restated effective July 1, 1971 (Resolution No. 4794 adopted 5/16/72) and included employees of the airport. Plan amended effective January 1, 1977 by Ordinance 13235 adopted January 4, 1977. Amended effective January 1, 1979 by Resolution 6070 adopted January 16, 1979. Amended effective January 1, 1980 by Resolution 6252 adopted December 4, 1979. Airport plan frozen effective January 1, 1987, and no new participants enter plan after that date. Airport adopted a Money Purchase Pension Plan effective January 1, 1987

EMPLOYEE: Employee of the Little Rock National Airport who began

participation in the plan prior to January 1, 1987. EMPLOYER: Little Rock National Airport. MEMBERSHIP: Participation begins on the January first after two years of

service provided the Employee was hired before age 55. CREDITABLE SERVICE: Determined on the basis of service since employment. EMPLOYEE CONTRIBUTIONS:

None after 1986. Prior to 1987, 3% of first $6,600 of pay, plus 4% of pay over $6,600. Contributions are credited with 4% interest.

MONTHLY SALARY: Compensation paid, including overtime and bonuses. FINAL AVERAGE SALARY: Average of Monthly Salary over 60 months.

I-16-03-2

7

EXHIBIT 5 (Continued) NORMAL RETIREMENT BENEFITS:

Eligibility: Age 65, or age 62 with 20 years of service. Benefit: 1.00% of first $6,600 of Final Average Salary times years of

service, plus 1.75% of Final Average Salary over $6,600 times years of service.

Form: Five year certain and life annuity. EARLY RETIREMENT BENEFITS:

Eligibility: Age 55 with 20 years of service. Benefit: Accrued Benefit, actuarially reduced for retirement before

Normal Retirement Age. LATE RETIREMENT BENEFITS:

Benefit at Normal Retirement Age, actuarially increased.

DISABILITY BENEFITS: Eligibility: Totally and permanently disabled. Benefit: Projected retirement benefit at Normal Retirement Age.

Benefit begins at Normal Retirement Age.

I-16-03-2

8

EXHIBIT 5 (Continued) DEATH BENEFITS: Eligibility: Death of Member age 55 or more, with at least 20 years of

service. Benefit: Dependent spouse receives 50% of the benefit the Member

would have received at Normal Retirement Age. Payment to the spouse begins upon death of the Member and continues to the spouse for the rest of their life.

Note: If not eligible for the 50% benefit, the Member’s beneficiary

receives a refund of the Member’s contributions with interest. VESTING: Ten years of service. MONEY PURCHASE PLAN: Benefits payable from the defined benefit plan are offset by the

Member’s account in the Money Purchase Plan.

I-16-03-2

9

EXHIBIT 6

Actuarial Cost Methods and Assumptions

COST METHOD: No “cost method” in the traditional sense has been

used. Since the plan covers a closed group, the unfunded present value of future benefits was determined and a method set up to fund that amount over a certain time period.

PRE-RETIREMENT MORTALITY: None assumed. POST-RETIREMENT MORTALITY: The 1983 Group Annuity Mortality Table was used.

The life expectancy according to this table is as follows:

AGE MALES FEMALES 55 24.82 years 29.16 years 65 16.69 years 20.64 years VOLUNTARY TERMINATIONS: From the T-7 Table in “The Actuary’s Pension

Handbook”. Annual termination rates at a few sample ages are:

AGE TERMINATION RATE PER 1,000 20 100.0 25 97.5 30 94.0 35 88.4 40 79.5 45 67.1 50 48.7 55 25.9 EXPECTED RETIREMENT PATTERN: We have assumed that participants would retire

when first eligible for normal retirement benefits.

I-16-03-2

10

EXHIBIT 6 (Continued) MONEY PURCHASE PLAN: In projecting the net benefits to be paid from the

defined benefit plan, the following assumptions were made concerning the Money Purchase Plan:

Employee Contribution Rate: 4.25% Airport Contribution Rate: 8.00% Assumed Investment Return: 6.50% DISABILITIES: None assumed. ASSUMED INVESTMENT RETURN: 7.00% annually. SALARY GROWTH: We have assumed that salaries grow 3.50%

annually. CONSIDERATION OF FUTURE MORTALITY IMPROVEMENTS:

Future mortality improvements were not considered in developing the suggested contribution or the financial statement items in Exhibit 3. The liabilities are significantly more volatile with regards to the other assumptions (i.e., investment return, salary growth, and retirement age), and the small size of the group, than with mortality.

I-16-03-2

L-16-03-1

1

Lease Committee Meeting February 10, 2016

The Lease/Consultant Selection Committee met in the Commission Meeting Room, One Airport Drive, Little Rock, Arkansas at 12:00 p.m. on the 10th day of February, 2016. The following members of the Commission were present:

Commissioners Stacy Hurst and Gus Vratsinas.

Also in attendance were Mmes. TJ Williams; and Messrs. Bryan Malinowski, Ron Mathieu, Tom Clarke, Charlie Jones, Elwin Jones, Allen Williams, David Tipton, Randy Ellison, Steve Bingham and others as registered.

The official actions of the Committee were as follows:

The meeting was called to order at 12:00 p.m. by Chairperson Hurst.

ACTION ITEMS: 1. Fleet Replacement Vehicle, 2016 Capital Project Item, Item L-16-02-1. Mr.

Elwin Jones reported that included on the Commission approved 2016 Capital Project/Equipment list is a budget of $250,000 for the purchase of fleet vehicles for the Airport. This purchase is for a RAM 2500 4x4 Crew Cab outfitted with a custom mechanics body for use by our Airfield Electricians. It will be purchased through Landers Dodge Jeep under Arkansas State Vehicle Contract (SP-16-0001). The current vehicle will be sent to auction once the new one is in place. 2016 RAM 2500 4x4 Crew Cab $26,503 Mechanics Body 8,500 Airfield radios, light bars, and related equipment 8,500 Sales Tax 1,530 Total Cost $45,033 Staff recommends Lease/Consultant Selection Committee approval authorizing the Executive Director, or his designee, to purchase a 2016 RAM 2500 4x4 Crew Cab and related equipment under Arkansas State Vehicle Contract #SP-16-0001 for a total price of $45,033.

On motion by Commissioner Vratsinas, seconded by Commissioner Hurst, approval of L-16-02-1, Fleet Replacement Vehicle was unanimous.

2. Tractor Accessories; Snow and Ice Removal, 2016 Capital Project Item, Item L-16-02-2. Mr. Elwin Jones reported that included on the Commission approved 2016 Capital Project/Equipment list is the purchase of additional tractor equipment to enhance snow and ice removal on the airfield. The purchase includes two (2) John Deere H310 Loaders, one (1) Frontier Loader-Mount Snow-blower, and two (2) Frontier 9’ Carrier Front Blades.

L-16-03-1

2

The equipment will be purchased through Greenway Equipment under a National Joint Powers Alliance (NJPA) Cooperative Agreement (#021815-DAC) for John Deere and Frontier equipment. NJPA is on the Commission approved 2016 Sole Source Procurement List.

John Deere H310 Loader (2) $5,930.40 $11,860.80 Frontier SB2176-76 Snow-blower $12,561.14

Frontier AF12G Blades (2) $5.977.66 $11,955.32 Taxes 9% $ 3,273.95

The total cost will be $39,651.21. The capital budget for this item is $36,316. There is no DBE or MBE participation.

Staff recommends Lease/Consultant Selection Committee approval authorizing the Executive Director, or his designee, to purchase the equipment listed above through Greenway Equipment under a NJPA Cooperative Agreement #021815-DAC.

On motion by Commissioner Vratsinas, seconded by Commissioner Hurst, approval of L-16-02-2, Tractor Accessories; Snow and Ice Removal was unanimous.

3. Caldwell Transport Amendment No. 1, Item L-16-02-3. Mr. Tom Clarke reported that a Lease Agreement between the Little Rock Municipal Airport Commission and Caldwell Transport. LLC was approved by the Commission on February 15, 2011. The Agreement term is for five (5) years expiring February 15, 2016. Caldwell currently leases 165 square feet of space in the Terminal Building, Baggage Claim Area, to support its operation of a baggage delivery service serving the airlines under separate contracts.

The parties have agreed, subject to Commission approval, to amend the Agreement to provide for automatic year to year renewals, commencing February 16, 2016, subject to mutual consent of the Executive Director and Caldwell for each one (1) year renewal, with a thirty (30) day notice of termination by either party, at any time, for any reason. Each year hereafter, the Staff shall report to the Commission if the parties have agreed to renew the Agreement for another year. All other terms and conditions remain unchanged. The existing agreement term was from February 16, 2011 to February 15, 2016. This is the first amendment to this lease agreement. The annual lease rate is currently $38.20 per square foot per annum. Caldwell pays the Commission a rental of $6,303.00 per year or $525.25 per month. The rental rate is reviewed and adjusted to the Terminal Base Rate each year.

Staff recommends that the Commission authorize the Executive Director, or his designee, to execute the First Amendment and direct the Staff to report annually to the Commission if the parties have agreed to renew the Agreement for another year.

L-16-03-1

3

Commissioner Hurst suggested that in the future she would like for Caldwell’s renewals to be presented to the Committee as an information item.

On motion by Commissioner Vratsinas, seconded by Commissioner Hurst, approval of L-16-02-3, Caldwell Transport Amendment No. 1 was unanimous with the proposed adjustment. INFORMATION ITEMS:

1. Weaver Bailey, Taxiway A & B Change Order No. 1, LIT Project No. 140401,

Item I-16-02-1. Mr. Tom Clarke reported that in September 2015, the Commission selected Weaver-Bailey Contractors, Inc. to provide construction services for the Taxiway Alpha & Taxiway Bravo Rehabilitations.

Airfield improvements included in this contract consist primarily of the following items: • Reconstruction of portions of Taxiways “A”, “B”, “C”, “D”, “K”, and “P”. • Reconstruction of portions of the GA ramp adjacent to Taxiway “A”. • Asphalt Mill and overlay to tie new and existing pavement along Taxiways

“A”, “B”, “C”, and “P”. Mill and overlay the west end of Taxiway “B”. • Construction of 25’ asphalt shoulder pavement along Runway 4L-22R at

the intersection of Taxiway “B”. • Removal of helipad located between Runway 18-36 and Taxiway “A”. • Replacement of runway and taxiway lighting, signage and pavement

markings within the project areas. • Re-grade existing grass infields between Runway 18-36 and Taxiway “A”

to meet current FAA requirements. • Re-grade existing Taxiway Safety Areas and Taxiway Object Free Areas

along Taxiways “A”, “B”, “C”, “D”, “K”, and “P” to meet current FAA requirements.

• Replacement of drainage structures and piping based on newly reconfigured drainage patterns within the project limits.

The Commission approved a construction contract with a maximum project amount of $18,459,810.00 which includes a 15% project contingency. The original contract time was 360 calendar days from Notice to Proceed (NTP) to Substantial Completion. The contract time is unchanged by this change order. The original Contract Sum was $16,052,008.71. There have been no previously approved Change Orders.

This Change Order No. 1 includes additional work associated with the installation of approximately 700 linear feet (LF) of concrete encased electrical duct bank, 20,000 LF of electrical cabling and aircraft rated pre-cast concrete electrical hand-holes as needed to supply power for taxiway lighting throughout the project areas. A new electrical cable route was determined to be required due to finding that the existing electrical cable route was full to capacity.

L-16-03-1

4

The Contract Sum was increased by this change order in the amount of $100,426.00 for a current total Contract Sum of $16,152,434.71. The funding will be FAA AIP Grant (approx. 87%), State Grants and Local Funds.

2. Redstone, 4R RSA, Change Order No. 1, LIT Project No. 140201, Item

I-16-02-2. Mr. Tom Clarke reported that in September 2015, the Commission selected Redstone Construction Group, Inc. to provide construction services for the Runway 4R Safety Area Improvements.

Airfield improvements included in this contract consist primarily of the following items: • Demolition of the existing Engineered Material Arresting System (EMAS)

and supporting pavement located off the north end of Runway 4R / 22L. • Construction of a 200’ X 200’ concrete blast pad off the end of Runway 4R

with associated pavement marking. • Grade existing Runway 4R safety area around the proposed blast pad and

existing EMAS to meet current FAA grading requirements. • Construct a 12’ asphalt access drive along the Medium Intensity Approach

Lighting System with Sequenced Flashers (MALSF) lighting system from the existing localizer to the end of the proposed concrete blast pad.

• Adjustment of existing MALSF lighting system including new cans, conduit, and cable for 15 lights located at the runway threshold and the Light Bar No. 7 located in the existing EMAS.

• Construction of approximately 3,000’ of 20’ wide asphalt perimeter road along the east side of Runway 4R-22L to replace the existing gravel perimeter road.

• Relocate the existing electrical rack and transformer that feeds the Runway 22L Precision Approach Path Indicator (PAPI) and Runway Visual Range (RVR) equipment. These items are located on the east side of Runway 4R-22L and are in the proposed alignment of the new perimeter road.

The Commission approved a construction contract with a maximum project amount of $1,678,662.00 which includes a 15% project contingency.

The original contract time was 90 days from Notice to Proceed (NTP) to Substantial Completion. The contract time is increased 54 days by this change order. Eighteen additional days are requested by the Contractor for additional soil cement stabilization along the perimeter road and the access drive. Thirty-six additional days are requested by the Contractor due to undercutting, removal of unsuitable soils, material testing delays and engineered fill placement to rectify poor soils conditions at the perimeter road. The new contract time after this change order is 144 days.

The original Contract Sum was $1,459,705.81. There have been no previously approved Change Orders.

L-16-03-1

5

The additional work performed under Change Order No. 1 provides for the installation of approximately 5,650 square yards of soil cement stabilization for the proposed perimeter road and access drive. Also included in this change order is the associated asphalt prime course and associated adjustments to the quantity of crushed aggregate base course, as well the construction of a temporary access road from the runway to the proposed perimeter road.

The Contract Sum was increased by this change order in the amount of $50,136.50 for a current total Contract Sum of $1,509,842.31. The funding will be FAA AIP Grant (90%) and future State Grant (10%).

The meeting was adjourned at 12:22 p.m. by Chairperson Hurst. _________________________________________________ Stacy Hurst, Lease Committee Chairperson _________________________________________________ Bryan Malinowski, Deputy Executive Director _________________________________________________ Thomas W. Clarke, Director – Properties, Planning & Development

L-16-03-2

Lease summary provided by: Tom Sutton, AIA, NCARB, Manager - Design & Construction

March 10, 2016

WORK AUTHORIZATION NO. 58 for

LIT Runway 4R-22L Centerline Lighting and Rehabilitation by

GARVER, LLC LIT Project No. TBD

INTRODUCTION: Garver, LLC was selected by the Commission in 2009 to perform On-call Airport Engineering Services and the Executive Director was authorized to negotiate and execute the Master Agreement for Professional Services dated August 30, 2010. Under Work Authorization No. 58, the Consultant shall perform the required scope of services in accordance with the requirements of Exhibit C – General Provisions for Engineering Services. Commission approval is now requested for the execution of Work Authorization No. 58 which will cover the professional services for the design and bid phase for LIT Runway 4R-22L Centerline Lighting and Rehabilitation as shown on the attached Exhibit. The total compensation to be paid to the Consultant shall be a total lump sum amount of One Hundred Sixty Five Thousand Fifty Four Dollars $165,054.00 for all labor and eligible expenses.

BASIC SCOPE: The scope of services for this Work Authorization includes preliminary project work, project administration, surveying, design, and bid phase services. COMPENSATION: The following fees have been negotiated for the services: Preliminary Work/Project Administration $ 20,700 Surveys $ 4,100 Final Design Services $128,048 Bidding Services $ 12,206 Total Budget Recommended for WA #58 $165,054 FUNDING: Future AIP Grant (90%), Future State Grant (10%) EFFECTIVE DATE: Upon approval of the Commission, and execution of the appropriate contract documents by the Executive Director, or his designee. DBE/MBE/WBE PARTICIPATION: This agreement has a goal that at least fifteen percent (15%) of the dollar value of the prime contract shall be awarded to small business concerns owned and controlled by socially and economically disadvantaged individuals. RECOMMENDATION: Staff recommends that the Commission authorize the Executive Director, or his designee, to execute Work Authorization No. 58 with Garver, LLC for the Professional Services as described above for all labor and approved expenses not to exceed a total fee amount of One Hundred Eighty Nine Thousand Eight Hundred Ten Dollars ($189,810.00), which includes a fifteen percent (15%) project contingency.

Runway 4R-22LCenterline Lighting andRehabilitation ProjectArea

Taxiway "R"Rehabilitation (4RMALSR ElectricalPanel Relocation)Project Area

khubbard

Text Box

L-16-03-2 Exhibit

R-16-03-1

Little Rock Airport Commission Retirement Committee Meeting

September 9, 2015

The Retirement Committee met in the Commission Conference Room, Bill & Hillary Clinton National Airport, Little Rock, Arkansas at 11:03 a.m. on the 9th day of September, 2015. The following members of the Committee were present: Mmes. Stacy Hurst, Reagan Brooks and Messrs. Bob East, Jim Dailey, Jack Murphy and Ronald Mathieu. Also attending were Mmes. TJ Williams, Sylvia Ambrogio, Carolyn Witherspoon and Messrs. Bryan Malinowski, Randy Ellison, Allen Williams, David Tipton, Tom Clarke, Charles Jones, Shane Carter, Elwin Jones and others as registered. The meeting was called to order at 11:03 a.m. by Chairman East. It was indicated that a quorum was present. The first item on the agenda was the approval of the minutes from the June 10, 2015, Retirement Committee Meeting; item R-15-09-1. On a motion by Commissioner Dailey, seconded by Mr. Mathieu, the June 10, 2015 minutes were unanimously approved. The next item on the agenda was I-15-06-1, the quarterly Retirement Plan Investment Report. Mr. Pat Moon of Meridian Investment Advisors reviewed the components of the Retirement Plan.

Bond and Stock Market review Defined Benefit Plan, Pension Plan & Trust and 457(b) Plan Review

Mr. Moon stated that stocks closed out their worst month in years. Also, uncertainty in China has caused global market volatility. This volatility creates opportunities to purchase strong U.S. companies at attractive prices. The S & P is down 3.4% for the year, but European and Japanese stocks are in the black for 2015. In addition, Mr. Moon stated that the two year treasury yields are going up with investors anticipating the Federal Reserve raising rates. The longer maturity interest rates are more inflation sensitive. The longer rates are staying low but investors are not all that worried about inflation. Mr. Moon noted the Defined Benefit Plan has a portfolio value of $1,305,860.38 for the period ending August 31, 2015. The plan disbursed approximately $155,000 in pension payments and there was a loss of approximately $77,000 and approximately $24,000 added in interest and dividends during the twelve month cash flow period. Also, there was $142,435.93 added with the last retiring member’s contribution.

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R-16-03-1

Mr. Moon also discussed the Airport’s Pension Plan & Trust and 457(b) Plans. As of August 31, 2015, the plans combined assets are $7,272,223.98. There are 173 participants in the Pension Plan Trust and 84 participants in the 457(b) plan. Currently, 89% are participating in the Target Date Funds. The next item on the agenda is item I-15-09-2, Performance letter to Defined Benefit Participants. Mr. Williams noted that last year Commissioner Miller asked that a letter be sent out to the participants. A copy of the letter was included in the packet. The next item discussed was item R-15-09-2, Recommended Employee Retirement Committee Structure. At the request of Chairman East, Mr. Williams stated that the committee would consist of a six person committee with five voting members. The members would be 1) the LRMAC Personnel and Retirement Committee Chair as an Ex-Officio Member, 2) the Deputy Executive Director, 3) the Director of Human Resources and Administration as chair of the Committee, 4) the Director of Finance and 5) two at-large employees who will serve a staggered three-year term. The positions for the two at-large employees would be posted similar to a job posting. The applicants would be interviewed by a committee and a recommendation made to the Executive Director who will make the final selection. In addition, they must be full-time employees in good standing and must be fully vested in the Pension Plan & Trust prior to serving the beginning of their term. At the request of Commissioner Hurst, Mr. Mathieu stated that the Commission does not have any liability in the 401A Pension Plan and the 457B Salary Deferral Plan. At the request of Mr. Murphy, Mr. Craig Westbrook stated that the design of the plan will still reside with the Commission as the plan sponsor. The Committee is responsible for the selection of the investments but it relies on the advice of an investment advisor. On a motion by Mr. Murphy, seconded by Mr. Mathieu, item R-15-09-2 was unanimously approved. The next item discussed was item D-15-09-1, Little Rock Municipal Airport Commission Bylaws. Mr. Mathieu stated that the only changes to the Bylaws are the following: Retirement Committee This Committee shall have the responsibility to review and recommend for approval to the full Commission (remove “all retirement plans”) (and add “to the defined benefit compensation plan”) provided to employees of the Commission. The Committee shall (remove “at”) (and add “act”) as trustee for such plans where appropriate. On a motion by Commissioner Dailey, seconded by Commissioner Hurst, item D-15-09-1 the Little Rock Municipal Airport Commission Bylaws were unanimously approved.

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R-16-03-1

The meeting adjourned at 11:38 p.m. by Chairman East. ____________________________________________________ Jesse Mason, Retirement Committee Chairman ___________________________________________________ Bryan Malinowski, Deputy Executive Director ____________________________________________________ Allen Williams, Director – Human Resources and Administration

3

M E M O R A N D U M

TO: Little Rock Municipal Airport Commission

FROM: Ronald F. Mathieu, CM

Executive Director

SUBJECT: Executive Director’s Report

DATE: March 18, 2016

The following are the noteworthy items to report for the month of March 2016.

New CFO: I am happy to report that we concluded our search for a new CFO and David Tipton

has been selected as the new CFO at the airport. Please join me in congratulating David in his

new role.

FAA Part 123 Certification Inspection: I am happy to report that the airport has concluded our

annual FAA certification inspection and we received “ZERO DISCREPANCIES” for four years

in a row. I would like to take this opportunity to congratulate the staff for a job well done, but

would like to specifically recognize and thank Bryan Malinowski, Charley Jones and Randy

Ellison for their commitment to safety and excellence.

Airport Presentations: To date the following presentations have been completed or scheduled.

We are planning to schedule more meetings throughout the year and look forward to the

opportunity to share information on the airport’s role as an economic engine and how air service

development decisions are made.

Little Rock Engineer’s Club - February 29

Rotary Club 99 (Downtown) - March 1

Little Rock Marriott Leadership – March 2

Mayor’s Youth Council – April 2

Advertising & Promotion Commission Meeting (LRCVB) – April 19

Arkansas Parks & Tourism – April 21

LRCVB Director of Sales Meeting – April 26

Little Rock Chamber Board of Director’s Meeting – April 28

West Little Rock Rotary Club – May 4

Out of the Office: I will be out of the Office Match 14th, through the 25th, during which time

Bryan Malinowski, Deputy Executive Director will be the acting Executive Director.

cc: Airport Executive Staff

DESIGN AND CONSTRUCTION CIP PROJECTS REPORT

March 8, 2016

Concourse Renovation Program (CRP) LIT Program #140100

Funding Source: Future PFC Funds as eligible Architectural Alliance International is the Architect of Record for the Program. The remaining scope of work for this Program includes the following projects:

o Wi-Fi Improvements (CO), LIT Project No. 140101 o Concourse Renovation Project, LIT Project No. 140102 o Passenger Hold Room Seating, LIT Project No. 140103 o Passenger Boarding Bridges Equipment (RFP), LIT Project No. 140104 o Distributed Antenna System (DAS), LIT Project No. 140105 o Concourse Data, Security & Communications Improvements, LIT 140106 o Restroom Renovations, LIT Project No. 140108

Items of work completed since last report include: o LIT staff review of the Construction Documents submittal (95% CD’s) for project

bid packages as listed above. Upcoming items of work include:

o On-going development of project bid packages as listed above o On-going preparation of the PFC application for funding o PFC Consultation Meeting with Airlines scheduled for April 6 o Issue early package for procurement of Passenger Boarding Bridges.

Gate 5 Restroom & Mechanical Improvements LIT Project #140101

Funding Source: Future PFC Funds as eligible Architectural Alliance International is the Architect of Record for the Project which is part

of the Concourse Renovation Program. The project includes a 2,288 square foot building addition for public restrooms. Other improvements include tug tunnel structural and paving repairs, supplemental chilled water lines, DAS Room Infrastructure and Receiving Dock Improvements.

Issued Notice to Proceed with construction to Flynco, Inc. effective August 5, 2014. Items of work completed since last report include:

o Submittal review for Wi-Fi equipment Upcoming items of work include:

o Submittal review for Wi-Fi equipment is on-going

Design and Construction CIP Project Report

March 8, 2016

Page 2 of 5

Summary prepared by Tom Sutton, AIA, NCARB – Manager, Design & Construction

Passenger Boarding Bridge Replacements LIT Project #140104

Funding Source: Future PFC Funds as eligible Architectural Alliance International is the Architect of Record for the Project and

Swanson Rink the PBB design engineer. The scope of work for this Project, approved as a part of the CRP, includes the

replacement of Passenger Boarding Bridges (PBB) at Gates 1, 3, 5, 7 & 8. Items of work completed since last report include:

o LIT staff review of the Construction Documents submittal (95% CD’s) for the project.

o Accelerated schedule for bidding Upcoming items of work include:

o Issue a Request for Proposals for the procurement of five passenger boarding bridges with procurement options for future PBB’s

Airfield Drainage Improvements – Phase 1 Construction LIT Project #100006 (Garver On-Call AE WA#5)

Funding Source: AIP 81 Garver, LLC is the design engineer for the Project. The scope of the work includes

improvements to the airfield drainage system located within the infield area bounded by Runways 18-36, 4L-22R and Taxiway Papa.

Issued Notice-to-Proceed to Redstone Construction effective June 30, 2014 On-site work resumed June 15, 2015 after lengthy suspension of work due to adverse

weather On September 25, Substantial Completion was achieved for all work, exclusive of the

Twy A infield drainage work (CO#6). Items of work completed since last report include:

o Installation of Taxiway Alpha infield drainage piping across the south ramp at TAC Air (CO#6) is approximately 95% completed.

o Proposed change order is under review for mill and overlay paving repairs at GA heavy ramp and south end of Rwy 36.

Upcoming items of work include: o Complete installation of Taxiway Alpha infield drainage piping across the south

ramp at TAC Air (CO#6). o Execute change order for mill and overlay paving repairs at GA heavy ramp and

south end of Rwy 36. o Complete mill and overlay paving repairs at GA heavy ramp


March 8, 2016

Page 3 of 5


Runway 4R RSA Improvements LIT Project #140201 (Garver On-call AE WA#47)

Funding Source: FAA AIP (90%) and State Grant (10%) Garver, LLC is the Design Engineer for the Project. Work items in this contract include

improvements to the Runway 4R safety area. Improvements will consist primarily of removal of the Runway 4R Engineered Material Arresting System (EMAS) and associated support pavement, construction of 200’ by 200’ concrete blast pad, Runway 4R safety area grading, adjustments to the existing MALSF lighting system, and construction of 3,000’ of asphalt perimeter road.

Airport Commission approval to award to Redstone Construction Group. Construction start 24 Oct 16.

Items of work completed since last report include: o Completed the concrete paving for the proposed blast pad o Completed perimeter road base preparation

Upcoming items of work include: o Complete saw cutting and sealing of blast pad paving joints o Complete perimeter road asphalt paving o Complete installation of lighting systems o Complete fine grading, sodding & seeding o Complete pavement markings o Inspection for substantial completion

Taxiway Alpha & Bravo Rehabilitation LIT Project #140401 (Garver On-Call AE WA#54)

Funding Source: FAA AIP Grant (approx. 87%), State Grant and Local Funds Garver, LLC is the design engineer for the Project. The scope of the work includes the

reconstruction of Taxiway Bravo and Taxiway Alpha, from approximately 300 feet north of Taxiway Kilo to approximately 600 feet south of Taxiway Delta

Airport Commission approval to award to Weaver Bailey Contractors. Construction start 1 November 2015.

Items of work completed since last report include: o Completed installation of soil cement stabilization at Twy B, C & P, Phases 3 & 4

o Installation of drainage pipe and structures in Phase 3 is on-going

o Installation of proposed electrical duct banks in Phases 3 & 4 is on-going

Upcoming items of work include: o Complete installation of under drains in Phase 3 & 4

o Complete installation of electrical duct bank at Twy B, Phases 3 & 4

o Begin installation of cement treated base (CTB) at Phases 3 & 4


March 8, 2016

Page 4 of 5


Parking and Revenue Control System (PARCS) Replacement LIT Project #149007 (LPA/Baker On-Call AE WA#14)

Funding Source: Local Funds LPA / Baker is the design engineer for the Project. NextGen Parking, LLC is the

Contractor. The scope of work includes the replacement of the parking and revenue control system (PARCS) as well as the installation of an automated parking and guidance system (APGS) for the parking garage.

Items of work completed since the last report include: o PARCS and APGS systems substantially completed

Upcoming items of work include: o Performance and acceptance testing for the PARCS is on-going

Airport Master Plan LIT Project #150101

Funding Source: AIP (90%) and Local Funds or State Grant (10%) In July 2015, the Commission authorized the Executive Director, or his designee, to

enter into negotiations with LeighFisher Inc. for comprehensive airport planning services, including a new Airport Master Plan. The Agreement will have an initial term of three (3) years, with three, one-year extensions available at the option of the Commission.

Items of work completed since the last report include: o Negotiated fees

Upcoming items of work include: o Finalize contract for signature o Issue Notice-to-Proceed

Airport Layout Plan and Data Collection LIT Project #150102

Funding Source: AIP (90%) and Local Funds or State Grant (10%) In July 2015, the Commission authorized the Executive Director, or his designee, to

enter into negotiations with Woolpert for airport planning, surveying and engineering services, including a new electronic Airport Layout Plan (eALP), and subsequent on-call services. The Agreement will have an initial term of three (3) years, with three, one-year extensions available at the option of the Commission.

Items of work completed since the last report include: o Development of the detailed scope of work for ALP is on-going o Negotiate fees and submit grant application to FAA

Upcoming items of work include: o Finalize contract for signature o Issue Notice-to-Proceed


March 8, 2016

Page 5 of 5


Electrical Vaults Rehabilitation LIT Project #150301 (Garver On-Call AE WA #49)

Funding Source: Local Funds and Future FAA AIP Funds as eligible Garver, LLC is the Design Engineer for the Project. The scope of services includes an

engineering study, design services, and bidding services for upgrading the electrical service and power distribution systems at both West and East Electrical Vaults. Other items include installation of new fire alarm systems with options for enhanced detection systems and fire suppression systems for both vaults.

Items of work completed since last report include: o Complete plans and specifications for bidding & construction

Upcoming items of work include: o Bidding & construction start

TO: Greg Garner Manager - Business and Properties Bill and Hillary Clinton National Airport

FROM: Sage Partners & JLL RE: March 2016

ACTIVITY/MARKETING REPORT Former Hawker Facility Little Rock, AR DATE: March 9, 2016

I. PROSPECTS

Size DEAL POINTS / COMMENTS

350,303/SF Interest from aviation prospect in leasing Hawker Buildings 100 - 400.

350,303/SF Received inquiry from broker on behalf of aviation prospect for Hawker Facility. Prospect’s project is preliminary.

TBD Interest from aviation prospect in leasing Hawker Building 200.

14,892/SF Interest from office user in 1805 S Bond Ave. Toured property with prospective tenant.

14,892/SF Interest from industrial user in 1805 S Bond Ave. Toured property with prospective tenant.

TBD Interest from office prospect in Hawker Buildings 100 and 200. Project is very preliminary. Toured the facility with prospect.

II. MARKETING/ADDITIONAL ITEMS

Received 105 website hits from online listing services.

Sent email marketing blast to JLL’s database of airport contacts.

February February Difference Percent

Year to

Date

Year to

Date Difference Percent

2015 2016 15 vs 16 (%) Change 2015 2016 15 vs 16 (%) change

Total Enplaned 61,945 68,027 6,082 9.82% 130,598 135,991 5,393 4.13%

Total Deplaned 61,910 67,197 5,287 8.54% 130,999 135,790 4,791 3.66%

Total Passengers 123,855 135,224 11,369 9.18% 261,597 271,781 10,184 3.89%


Year to

Date

Year to



American Eagle 14,066 19,064 4,998 35.53% 29,779 38,199 8,420 28.27%

Delta Airlines 16,970 19,004 2,034 11.99% 34,956 37,725 2,769 7.92%

Southwest Airlines 17,400 18,658 1,258 7.23% 37,071 37,767 696 1.88%

United Airlines 8,823 10,141 1,318 14.94% 18,848 20,573 1,725 9.15%

US Airways 4,002 0 (4,002) -100.00% 8,968 0 (8,968) -100.00%

Charters 0 174 174 100.00% 53 287 234 441.51%

GLO Airlines 0 456 456 100.00% 0 789 789 100.00%

Allegiant Air 684 530 (154) -22.51% 923 651 (272) -29.47%

Total 61,945 68,027 6,082 9.82% 130,598 135,991 5,393 4.13%


Year to

Date

Year to



American Eagle 14,178 19,262 5,084 35.86% 30,414 38,835 8,421 27.69%

Delta Airlines 17,293 18,772 1,479 8.55% 35,603 38,145 2,542 7.14%

Southwest Airlines 17,241 18,390 1,149 6.66% 36,670 37,137 467 1.27%

United Airlines 8,634 9,814 1,180 13.67% 18,431 20,124 1,693 9.19%

US Airways 3,941 0 (3,941) -100.00% 8,880 0 (8,880) -100.00%

Charters 0 63 63 100.00% 52 174 122 234.62%

GLO Airlines 0 431 431 100.00% 0 771 771 100.00%

Allegiant Air 623 465 (158) -25.36% 949 604 (345) -36.35%

Total 61,910 67,197 5,287 8.54% 130,999 135,790 4,791 3.66%


Year to

Date

Year to



American Eagle 28,244 38,326 10,082 35.70% 60,193 77,034 16,841 27.98%

Delta Airlines 34,263 37,776 3,513 10.25% 70,559 75,870 5,311 7.53%

Southwest Airlines 34,641 37,048 2,407 6.95% 73,741 74,904 1,163 1.58%

United Airlines 17,457 19,955 2,498 14.31% 37,279 40,697 3,418 9.17%

US Airways 7,943 0 (7,943) -100.00% 17,848 0 (17,848) -100.00%

Charters 0 237 237 100.00% 105 461 356 339.05%

GLO Airlines 0 887 887 100.00% 0 1,560 1,560 100.00%

Allegiant Air 1,307 995 (312) -23.87% 1,872 1,255 (617) -32.96%

Total 123,855 135,224 11,369 9.18% 261,597 271,781 10,184 3.89%

Enplaned Passengers by Airline

Deplaned Passengers by Airline

Total Passengers by Airline

Passenger Activity Forecast vs. Actual

Year Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total % Change

2005 82,843 82,705 109,168 101,329 117,316 123,775 123,440 110,055 103,920 109,572 105,222 101,384 1,270,729

2006 89,652 86,147 114,658 103,157 116,933 120,692 121,085 106,078 100,021 109,252 104,363 103,017 1,275,055 0.34%

2007 88,325 82,731 107,198 101,085 115,677 120,522 117,170 113,507 104,622 110,371 104,970 101,519 1,267,697 -0.58%

2008 87,428 89,060 105,487 100,282 112,170 112,788 116,397 102,813 89,688 99,608 88,146 89,635 1,193,502 -5.85%

2009 78,571 76,974 96,260 91,412 103,874 105,388 109,071 94,853 91,821 100,433 91,978 94,335 1,134,970 -4.90%

2010 78,740 72,692 94,712 94,049 102,938 106,056 107,169 94,944 92,497 98,309 91,966 90,631 1,124,703 -0.90%

2011 77,188 67,684 90,497 86,187 100,489 106,822 106,919 92,754 91,655 97,074 94,407 91,334 1,103,010 -1.93%

2012 80,845 80,877 98,642 93,745 109,957 110,099 105,303 96,965 89,916 99,426 94,303 87,808 1,147,886 4.07%

2013 78,743 74,585 94,153 94,050 104,483 102,873 100,430 89,815 84,673 94,200 84,442 82,826 1,085,273 -5.45%

2014 73,639 69,459 88,282 84,630 99,882 99,128 100,034 87,230 80,800 92,447 80,485 82,367 1,038,383 -4.32%

2015 68,653 61,945 79,689 79,464 90,080 94,844 96,327 86,238 81,415 93,777 82,519 81,886 996,837 -4.00%

2016 67,964 68,027 135,991 4.13%

Year Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total % Change

2005 165,781 164,796 217,021 204,560 232,958 247,908 244,924 224,527 205,745 219,841 210,846 199,509 2,538,416

2006 179,487 171,978 226,846 207,577 231,227 240,545 240,304 215,509 198,918 218,392 208,300 204,008 2,543,091 0.18%

2007 177,938 165,556 211,664 203,221 227,378 238,456 234,722 227,447 207,571 221,707 210,230 200,239 2,526,129 -0.67%

2008 176,679 177,682 211,580 202,061 219,789 226,404 234,938 208,068 179,419 198,479 177,505 175,360 2,387,964 -5.47%

2009 157,555 152,796 193,967 182,117 203,478 211,131 216,063 193,509 182,519 200,934 184,704 185,532 2,264,305 -5.18%

2010 158,421 144,119 193,163 185,079 203,814 211,196 211,524 194,568 183,695 196,942 183,993 178,271 2,244,785 -0.86%

2011 155,322 135,309 181,095 171,718 199,200 212,233 212,561 189,436 182,445 194,843 190,399 180,394 2,204,955 -1.77%

2012 164,029 161,016 197,811 187,582 213,570 219,997 210,107 196,454 179,368 200,891 188,043 174,094 2,292,962 3.99%

2013 158,318 149,088 190,628 185,817 204,169 204,903 201,760 183,707 170,046 186,140 169,733 163,121 2,167,430 -5.47%

2014 147,916 138,646 176,425 170,780 196,205 196,674 200,832 178,524 161,435 185,257 161,172 162,685 2,076,551 -4.19%

2015 137,742 123,855 160,612 157,623 176,200 189,154 191,050 176,115 162,264 187,242 166,188 159,387 1,987,432 -4.29%

2016 136,557 135,224 271,781 3.89%

60,000

70,000

80,000

90,000

100,000

110,000

120,000

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Enplaned Passengers

2005 2006 2007 2008 2009 20102011 2012 2013 2014 2015 2016

110,000

130,000

150,000

170,000

190,000

210,000

230,000

250,000

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Total Passengers

2005 2006 2007 2008 2009 20102011 2012 2013 2014 2015 2016

Market ShareAirlines Total Passengers

Delta Airlines 27.94%

38,326 28.34%

37,776

American Eagle

United Airlines 19,955 14.76%

Southwest Airlines 37,048 27.40%

100.00%Total

Allegiant Air

237

995

135,224

0.18%Charters

0.74%

GLO Airlines 887 0.66%

American Eagle, 38,326

Delta Airlines, 37,776

Southwest Airlines, 37,048

United Airlines, 19,955

Allegiant Air, 995

GLO Airlines, 887

Charters, 237

February 2016Market Share Report

American Eagle Delta Airlines

Southwest Airlines United Airlines

Allegiant Air GLO Airlines

Charters

2016 2015 Passenger Percent

Total Total Difference (%) Change

Passengers Passengers 15 vs 16 15 vs 16

January 136,557 137,742 (1,185) -0.86%

February 135,224 123,855 11,369 9.18%

March 160,612

April 157,623

May 176,200

June 189,154

July 191,050

August 176,115

September 162,264

October 187,242

November 166,188

December 159,387

Total 271,781 1,987,432

Year-to-Date Year-to-Date

Passenger Percent

Year-to-Date Year-to-Date Difference (%) Change

2016 2015 15 vs 16 15 vs 16

Total

Passengers 271,781 261,597 10,184 3.89%

Total Passengers

Little Rock Convention and Visitors Bureau 2016

Airport VIC

Jan Feb March April May June July August Sept Oct Nov Dec Totals

2016 Visitors 1,871 1,869 3,740

Phone Calls 42 47 89

2015 Visitors 2,192 2,038 2,536 2,550 2,913 3,414 3,362 2,242 2,532 2,758 2,379 2,477 31,393

Phone calls 53 53 61 57 61 43 26 42 65 75 77 57 670

Shane Carter Director

Public Affairs and Governmental Relations

Commission Report

March 2016

1. Governmental Affairs:

Provide an update on FAA reauthorization from the AAAE / ACI Legislative Conference

to be held March 15-16 in Washington, D.C.

2. Airline Marketing:

Glo will begin nonstop service to Destin-Fort Walton Beach on Friday, March 25. We’ve

reached 105,437 people through social media to build awareness of the route. By the end

of the month, we will be working with the airline to start an online ticket giveaway

campaign to gain additional exposure.

Southwest Airlines has begun the second phase of its social media campaign to market St.

Louis service. The campaign will run through the end of the month.

3. Interstate 440 Construction:

The Arkansas Highway and Transportation Department has begun a resurfacing project on

a three-mile section of Interstation 440 that will run until October. Lanes, in both

directions, will be resurfaced from west of Bankhead Drive to the Arkansas River Bridge.

Traffic will be reduced to two lanes during the day and down to one lane overnight.

We’ve been told that work shouldn’t inconvenience our customers’ travel to the airport;

however, we plan to use social media to update passengers should changes occur.

4. Welcomes, Outreach:

Welcome: National Conference of Insurance Legislators

CVB Industry Meeting: February 25

Little Rock Engineers Club: February 29

Rotary – Downtown Club 99: March 1

Meeting with Marriott Hotel Leadership: March 2

Welcome: Little Rock Marathon

Hot Springs County Leadership Forum: March 17

Mayor’s Youth Council: April 2

Parks and Tourism (Forrest City): April 21

Welcome: Presidential Scholars Program

CVB Hotel Director of Sales Meeting: April 26

West Little Rock Rotary: May 4

2016

HUMAN RESOURCES STAFFING REPORT

2014 2015 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Totals

Total Budgeted Positions 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182

Frozen Positions 15 15 15 15

Total, Month Beginning Employees 160 158 158 152

Total New Hires 33 23 0 6

Voluntary Separations 16 17 3 2

Length of Service:

12 months or less 5 9 2 0

1 to 3 years 6 7 1 1

3 to 5 years 2 1 0 1

5 to 10 years 1 0 0 0

10 years plus 0 0 0 0

Voluntary Monthly Turnover 9.7% 10.3% 2.0% 1.3%

Involuntary Separations 11 4 1 0

Length of Service:

12 months or less 6 2 1 0

1 to 3 years 3 0 0 0

3 to 5 years 1 1 0 0

5 to 10 years 1 1 0 0

10 years plus 0 0 0 0

Involuntary Monthly Turnover 6.1% 2.4% 0.6% 0.0%

Retirements 3 5 2 1

Total, Month Ending Employees 163 158 152 155

Total Employees (Monthly Average) 162 162 155 154

Total Monthly Turnover % 2.6% 1.3%

Voluntary Turnover - Year - To - Date 9.7% 10.3% 2.0% 3.3%

Involuntary Turnover - Year - To - Date 6.1% 2.4% 0.6% 0.6%

Total Turnover - Year - To - Date 15.8% 12.7% 2.6% 3.9%

M E M O R A N D U M

TO: Little Rock Municipal Airport Commission

FROM: Randy Ellison

SUBJECT: Director – Facilities Report

DATE: March 18, 2016

Facilities maintenance and airfield staff completed electrical work near the air cargo ramp in

preparation for installation of high speed gates in that area later this year.

Airfield staff responded to make an emergency repair to a section of perimeter fencing

where a vehicle had caused minor damage.

Terminal maintenance and information systems staff completed roll out of our new

streamlined work order system. After more than a year of research and testing, supported by

Mr. Elwin Jones, Director – Procurement, we have installed Maintenance Connection. This

system will allow for more detailed reporting of work order status and trending.

Information systems and electronic technology staff are currently providing assistance to two

airport tenants with upgrades to access gates in their lease hold areas.

Information systems staff and leadership began preparing two new servers for software

upgrades to Kronos, which is our existing time keeping, human resources and payroll system.

Baggage Handling System Snapshot for months of October 2015 through February 2016:

October November December January February

58190 53635 60675 48057 43664

M E M O R A N D U M

TO: Little Rock Municipal Airport Commission FROM: Charles Jones

SUBJECT: Director-Operations Report

DATE: March 7, 2016

The following are the noteworthy Operations Department items for the March 2016 Airport Commission meeting.

Cancelled Flights for February 2016

Date Airline Aircraft

Type City Weight Fee

2/1/2016 United Airlines CRJ2 DEN 47,000 $190.35

2/3/2016 Envoy CRJ9 CLT 75,100 $304.16

2/13/2016 Envoy CRJ9 CLT 75,100 $304.16

2/14/2016 United Airlines E145X ORD 44,092 $178.57

2/14/2016 Envoy E145 ORD 43,650 $176.78

2/15/2016 Envoy CRJ9 CLT 75,100 $304.16

2/19/2016 Envoy E145 ORD 43,650 $176.78

2/23/2016 GLO SF34 MSY 28,500 $115.43


2/24/2016 United Airlines E145 ORD 43,650 $176.78

2/24/2016 Envoy E145 ORD 43,650 $176.78


Total 607,676 $2,461.09

Unscheduled/Diverted aircraft for February 2016

Date Airline Aircraft Type Landing Weight Reason

Landing Fee

2/12/2016 Envoy CRJ-9 73,500 Medical Divert $297.68

2/12/2016 Kalita Charters LLC. B722 161,000 Cargo $652.05

2/15/2016 Xtra Airways B738 144,000 Charter $583.20

2/16/2016 Kalita Charters LLC. B722 161,000 Cargo $652.05

2/17/2016 Alliance Air Charter Shorts 360 27,099 Cargo $109.75

2/19/2016 USA Jet Airlines Falcon 20 28,600

Mechanical Divert $115.83

2/21/2016 Kinetic Motion Inc. CRJ-2 47,000 Charter $190.35

2/21/2016 Xtra Airways B738 144,000 Charter $583.20

2/23/2016 Sun Country B737 129,200 Charter $523.26

2/25/2016 Delta Airlines A320 142,198 Medical Divert $575.90

2/27/2016 Mercury Radio Arts Inc DC91 81,700 Cargo $330.89



Total 1,397,697

$5,660.67

Medical Responses for February 2016

2/11/2016 Passenger having a panic attack. Transported to UAMS. 2/12/2016 Diverted Flight due to passenger with low blood pressure and

unresponsive. Transported to Baptist Springhill. 2/14/2016 Inebriated passenger at gate. Transported to UAMS. 2/20/2016 Passenger having a seizure. Transported to St. Vincent’s.

2/25/2016 Diverted flight with passenger in cardiac arrest. Declared DOA. 2/28/2016 Airline employee not feeling well. Transported to Baptist.

2/28/2016 Passenger passed out on scheduled flight. Not transported.

TSA Pre-check Enrollment

Appointments

Walk Ins

Monthly Totals

June 63 55 118

July 209 144 353

August 130 139 269

September 103 169 272

October 102 156 258

November 74 116 190

December 129 131 260

January 114 159 273

February 122 179 301

YTD Totals 1046 1248 2294

1

221769

CROSS, GUNTER, WITHERSPOON & GALCHUS, P.C. ATTORNEYS AT LAW

LITTLE ROCK/SPRINGDALE

J. Bruce Cross Carolyn B. Witherspoon

Donna Smith Galchus

M. Stephen Bingham Richard A. Roderick

Misty Wilson Borkowski Missy McJunkins Duke

Cynthia W. Kolb

Amber Wilson Bagley J. E. Jess Sweere

Mary Cooper

Joseph A. Ramsey Gregory J. Northen

Abtin Mehdizadegan

Of Counsel

Robin Shively Brown

Laura D. Johnson

Russell Gunter (1950-2013)

www.cgwg.com

500 President Clinton Avenue, Suite 200

Little Rock, AR 72201 Telephone (501) 371-9999

Fax (501) 371-0035

Mailing Address

P.O. Box 3178

Little Rock, AR 72203

Commission Counsel Activity Report

February, 2016

1. Attended committee and Commission meetings. 2. Worked with staff on contract reviews. 3. Worked with staff on leases.

4. Research for staff on issues, including sale of personal property.