Member questions lobby sponsorship at regional airport
Group reviews state statute allowing Owens to keep seat on board for now
The Delta Regional Airport Authority on Thursday heard updates on the facility as well as concerns from one board member regarding the sponsorship of the airport’s lobby by Hobbs Equipment.
Board member Shirley Harvell claimed Hobbs is using the lobby, which it sponsored, to promote its business.
Harvell also questioned invoices to Hobbs Equipment that were listed in the airport’s financial report. The board also discussed board member Kendall Owens’ position on the board now that he is an elected St. Francis County Justice, and heard an update on fuel sales.
Board President Shannon Hobbs explained that a Harvell is questioning a picture in the airport’s terminal showing a Hobbs Equipment sign.
"There was a question brought up by Mrs. Shirley about the terminal lobby sponsorship," said Hobbs. "I think what brought her attention to it is that one of the pictures out here has a picture with a Hobbs Equipment sign in it.
Hobbs explained that Progeny Ag originally stepped up and said they would sponsor the lobby, but backed out and did not do the project.
“We stepped up and made a contribution for the terminal lobby, but part of the agreement was that whoever did that would be able to hang a sign. We even talked about having a constant video loop playing on the TV, just as a thank you,” said Hobbs. “I don't really want to call it an advertisement because it doesn't make you a dime. If that is a problem, I will be glad to take a reimbursement on our funds and take it down."
Harvell claimed the photo constitutes free advertisement and Hobbs should be reimbursed so the photo can be taken down.
"That was going to be my suggestion," said Harvell. "Since we are now getting funds from the two cities and counties, we just reimburse you so that it can come down. It is still free advertising."
"Technically, we paid for it," said Hobbs.
"He is a board president and a board member and that is free advertisement,” Harvell argued.
"But if he paid a fee, it is not free," responded Owens.
"No, that is free advertising," said Harvell.
“He paid a sponsorship fee and it was offered to everyone – to any business owner – and nobody stepped up," said Owens.
"He is the chairman of this board," said Harvell.
"Regardless of whether or not he is the chairman of the board, it was open to any business to sponsor," said Owens.
"No," said Harvell. "He's the chairman of this board. That is free advertisement for his business."
"I am misunderstanding the definition of free if he paid for it," said Owens.
"If he paid for what?” asked Harvell.
"If he paid a sponsorship fee for the sponsorship," said Owens.
"We should reimburse him," said Harvell.
"I disagree," said Owens. "In my opinion, if his business paid to sponsor that room, then it is not free advertising."
"Stop," said Harvell. "Why don't we stop. I'll get an attorney and we will let the attorney make the decision."
Owens explained to Harvell that if she wishes to get an attorney, the attorney can present their opinion to the board, but noted the board is not bound by the attorney's opinion.
"You mentioned an attorney, then you get an attorney and let the attorney make the decision," said Owens. "Actually, let the attorney present their opinion. One attorney's opinion may not match another's opinion."
"So what are you saying?” asked Harvell.
"I am saying that just because Attorney A says something doesn't mean that Attorney B is going to agree with that," said Owens. "Now that you have mentioned an attorney, we don't need to have this discussion anymore."
"I was trying to find a way to find someone who can say with him being a board member, that looks funny," said Harvell.
"I did not disagree with what you are saying," said Owens. "My comment was simply this. If you are talking about getting an attorney, then I don't think we need to have this discussion anymore until you get your attorney. But, just because you get an attorney, does not mean that the board is bound by that attorney's decision."
"Then forget the attorney," said Harvell. "What I am trying to get the board to see is that he is the chairman of this board. How can you not see that he should never have done that? Board members cannot make money off of the airport. I would prefer we give him back the money."
"Let the board vote. I am not going to vote anyway," said Hobbs. "Whatever the board wants to do, I am good with."
"No, because see, at this point, there is no need for the board to vote," said Harvell. "I don't see how this board could have agreed to that with him being chairman of the board. You all don't see that is free advertisement out here?"
"It's not free advertisement," said board member Nancy Jarratt. "Anybody could advertise."
"He's not anybody, you're not anybody, she's not anybody," said Harvell.
"If you had a business and wanted to put that out there, that was your opportunity if you wanted to contribute to the funding of the lobby," said board member Corbin Brown.
"I don't understand how this is so difficult," said Harvell.
According to Hobbs, Harvell could make a motion to reimburse him the funds and take the picture down, and if the board voted in favor of the motion, he would gladly take it down.
"Let me say this, and like I said I wouldn't vote anyway," said Hobbs. "If this is a concern of yours, just like anything else we discuss on this board, make a motion and we can gather a second."
"Why, when they are all going to vote for you?” asked Harvell. "Tell me why. Why? You hear that they are going to vote for you so there is no reason to make a motion."
"First of all, it has been over three years since that decision was made," said Hobbs. "I am not getting aggravated."
"I am getting aggravated," said Harvell. "I am because I cannot see how you or anybody else on this board cannot see that this is a conflict of interest. Okay just let me leave it alone right now."
Hobbs told board members Harvell also has concerns regarding invoices showing Hobbs Equipment on the agency’s financial report.
"Mrs. Shirley had brought up some questions on the accounts payable," said Hobbs. "There were some invoices there to Hobbs Equipment. I brought those with me. Any time you see Hobbs Equipment on a list, that is either going to be where I have had to purchase something on a credit card. For example, I had to send Danny to Memphis to get a roll of rope for tie-downs and he had to use my company credit card to make the purchase. It is always reimbursements. I am not going to get into making money off of the airport."
"So, we are not buying supplies for the airport from Hobbs?” asked Harvell.
"No," said Hobbs. "Hobbs Equipment doesn't need to sell anything to the airport."
"I was concerned that the airport was purchasing supplies or things that they need that they should be purchasing from one of the other cities so that is what I was concerned about," said Harvell. "So you are telling me that none of these are for supplies."
"You can look at the list," said Hobbs. "Everything is backed up by invoices."
According to Owens, the question of his eligibility on the board was brought to his attention in December after receiving a statute from St. Francis County Attorney Fletcher Long.
"There was a question raised in regard to my continued membership on the board, due to being elected as a St. Francis County Quorum Court member," said Owens. "In December, Fletcher sent me a copy of the constitutional law that appears to show that I would have to step down. At an Arkansas Association of Counties meeting, however, I raised the question to the Association of Counties attorney and she said no, that is not what that statute means. That statute means that I could not be appointed once I started serving as a Quorum Court member. Since I have already been appointed, it is not an issue. Once my appointment runs out, if I am still a member of the Quorum Court, I will have to step down and be replaced."
According to the fuel report, of 34 reported sales during the period of Dec. 1 through Jan. 25, the DRA sold approximately 3,008.130 units of fuel, for a total of $18,637.56.