HomeMy WebLinkAbout2011-05-03 Agenda Review New Hanover County Airport Authority
May 3, 2011
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NEW HANOVER COUNTY AIRPORT AUTHORITY
AGENDA REVIEW MEETING
May 3, 2011
ASSEMIRLY
The New Hanover County Airport Authority met for Agenda Review on Tuesday, May 3, 2011,
at 5:30 p.m., in the Executive Conference Room at Wilmington International Airport, 1740
Airport Boulevard, Wilmington, North Carolina.
.Airport Authority members present were Paul Burton, Chairman; John Lennon, Secretary;
Charles Rays and Harry Stovall. Robert hippy, Nice Chairman, was not present. Also present
" mo ere Jon Rosborou Airport Director; Julie Wilsey, Deputy Airport Director; Jim Morton,
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Sandra Routh, Executive Assistant; Wanda Copley, New Hanover County Attorney; and Steve
Bright, Talbert & Bright, Inc.
Chairman Burton called the meeting to order and announced that the purpose of the meeting was
to discuss the agenda for the Authority's May 3, 2011, Regular Public Meeting.
A GENDA. ITEMS
Special Events: Mr. Morton stated there were about 1,559 attendees at the air show on Saturday,
April 16, before it was cancelled, and there were approximately 18,000 attendees on Sunday,
April 17. He reported a loss of approximately $62,000, with the Saturday cancellation. Mr.
Broughton stated the air show performers were outstanding on Sunday. He reported air show
traffic control and parking was the best of any air show so far, giving credit to Capt. Cary Taylor
and his Command Center staff. He said the airline managers reported six commercial flights
were impacted /delayed, both inbound and outbound, which caused some passengers to miss their
connecting flights. Fortunately, no US Airways passengers missed their connections; however,
some passengers had only 11-19 minutes to get to the gate for their connecting Bight. Delta had
two of the six flights that were impacted, delayed approximately one hour each. He stated Mr.
Rosborough received a letter from a Delta passenger complaining that he and others on his plane
missed an international connection due to a delayed flight. Mr. Broughton explained the air
show communication procedure between the Air Boss, the tower and the airlines, and why the
commercial flights were delayed. He said there was a letter to the local newspaper editor from a
church pastor complaining that the air show interrupted his sermon. Another concern Mr.
Broughton raised was that PSO employees had to ask people who live in close proximity to the
airport to leave their homes during portions of the air show; and although the people cooperated,
it was not without issues and/or complaints. Mr. Broughton spoke with Mike Schmidt, ILM's
new Air Traffic Control Manager, after the air show, who stated in retrospect that he was not in
favor of trying to work the commercial flights in to the show. Mr Schmidt commented the
reason this doesn't work is because the Air Boss handling the air show operates under
completely different rules from the Air Traffic Controllers who handle commercial air travel, but
they basically share the same air space. Mr. Broughton said Mr. Schmidt also had some
concerns about the last - minute schedule change for the Friday night air show, which made it
necessary for him to divert a ding Air flight corning in to Customs and a Lab Quest flight
conning in with medical specimens. In addition, Mr. Schmidt had to delay a couple of corporate
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May 3, 2011
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departures. Mr. Broughton said these four corporate flights were impacted by the air show, and
they were not happy. Mr. Rosborough reiterated what Mr. Masters stated in his report to
.Authority members at the last meeting — that ILM's air traffic was becoming too busy to hold an
air show, and stated it may be time to get out of the air show business; it's not worth
inconveniencing the customers. After a brief discussion and with the consensus of the other
Authority members, Chairman Burton said he agreed.
Finance Report: Mr. Morton reviewed the March financial items, commenting that for the next
several months, revenue and disbursements will be somewhat askew due to the air show.
However, he stated ILM was under budget for the year.
'fir. Dorton reminded Authority members he distributed copies of the FY 2012 operational
Budget of $6,5)59,800 and Capital Budget of $21,307,5)00 for their review and comment at the
last meeting, and he needed their approval to publish a legal advertisement in the newspaper
offering the budgets for a 30 -day public review prior to final approval at the June meeting.
Mr. Morton stated ILM's annual audit would be coming up at the end of the fiscal year on June
30, and he had a quote for a contract to perform the audit from Lanier, Whaley and Craft in the
amount -of $36,600,.. which needed Authority members' approval. In response to Chairman
Burton's question, Mr. Morton replied that the amount of Lanier, Whaley and Craft's contract
for the past two years was $35,500, but due to the extra work involved with the air show, the
contract amount increased for the present fiscal year.
Facilities: Mrs. Wilsey said she needed to add a consent item for approval of a contract with
Tinney Painting to paint the canopy located at the terminal front entrance in an amount not to
exceed $28,000. She discussed two actions for approval by Authority members, including an
Airfield Painting Contract with Hasco in an amount not to exceed $4',000 for airfield rubber
removal, painting and other maintenance items in preparation for the upcoming annual FAIL. Part
139 Airport Certification Inspection, and a work Authorization with Talbert & Bright for
additional staff time incurred to review and prepare information for the Storm. water Phase II
Project at a cost not to exceed $15,000.
Mrs. Wilsey updated Authority members on the status of current projects, including the Airport
Boulevard Rehabilitation and Lighting Project, the new Rescue Base Roof, the Runway 6 -24
PAPI Project, the LED Airfield Guidance Sign Project, the New Parking Lot, and the audio-
visual up for the Executive Conference Room.
Government There were no items for discussion.
Marketing and Public Relations: Mr. Morton reported the new television commercial featuring
the Chicago flight was on the air. There are also new radio spots on the air featuring the Chicago
and Washington, DC flights. As a result of the marketing initiative, he commented that the DC
fli was picking up.
Going forward for the next fiscal year, Mr. Morton stated staff wanted to continue working with
Fourth Day Advertising for its television media, and the annual contract in the amount of
$106,312 needed Authority members' approval.
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May 3, 2011
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Planning and Development: Mr. Morton pointed out on the airport overlay the location of a 1.34
acre property located at 2945 Acorn Branch Road, and stated the owners wanted to sell it. The
property has been appraised. After a brief discussion with Authority members, Mr. Morton said
their approval would be needed to purchase the property at the appraised value.
Mr. Morton discussed the purchase of two parcels of land totaling 7.53 acres located along Blue
Clay road with Authority members, stating their approval would be needed to purchase the
property using ILM's PFC funds.
Mr. Morton updated Authority members on the status of the Lift Station Project, stating
Chairman Burton recently approved a Change order with the Cape Fear Public Utility Authority
for $7,700 in additional funds, when it was discovered that tapping into the force main pipe
required going deeper in the ground than anticipated, because it was under a marsh.
Mr. Morton updated Authority members on the status of the VA Project. He stated ILM was
obligated to relocate the water line and extend the sewer to the VA site, and he needed Authority
members' approval of a contract with W.K. Dickson in the amount of $19,200 for the design,
coordination, bidding and observation of the relocation of the water line and extension of the
sewer line.
Operations Report: Using charts for illustration, Mr. Broughton discussed airport statistics for
the month of April, including fuel price comparisons, fuel flowage amounts, airfare comparisons
with MYR and RDU, and total passengers handled. He stated the load factor for April was
91.3 %. He stated the total passengers handled for the year was up approximately 4% over last
year's figure.
In response to Mr. Rosborough's question, fir. Broughton stated the April load factor for the
weekend DCA flight was 81%, and was increasing. fir. Morton added that both of the DCA
flights going out last weekend were fully loaded. Mr. Rosborough stated the statistics for the
incoming DCA flights were still low, and it has been a challenge to fill those flights; but with the
airport's marketing initiative, the numbers were picking up.
Mr. Broughton reported the load factor for LGA was 84%, PHL was 83%, and Orlando -- Sanford
was 95 Reporting statics for the overall airlines, he said US Airways' load factor was 85%,
Delta's was 94%, and Allegiant's was 95%.
Directors Deport: Mr. Rosborough remarked that after hearing the numbers from Mr.
Broughton, ILM was doing much better than other airports its size.
He commented that Authority members may have heard about some new regulations proposed
by the US Department of Transportation, enhancing consumer protection with airlines.
Basically, he said, these new rules would entitle airline passengers to some sort of compensation,
if their luggage is lost after paying the required fees, or if a passenger is bumped from a flight
that was overbooked. Mr. Rosborough said that once this legislation is signed, it would be
approximately 120 days after publication in the Federal Register before the new regulations
would go into effect.
Mr. Rosborough stated the cost of fuel has impacted the airlines tremendously, just the same as it
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May 3, 2011
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has affected everyone at the pumps. Fuel prices increased 29% during the first quarter of this
year. Airfares have increased approximately $10 -$12 per segment. Several domestic airlines
lost an aggregate of $1 Billion during the first three months of 2011. As a result, he stated the
airlines are reevaluating what they can control, which means they're looping at capacity issues
and doing away with inefficient aircraft. Since ILM is in the top percentile of revenue - producing
airports, Mr. Rosborough said these changes may not have any impact here.
Mr. Rosborough reminded Authority members about their annual report to the New Hanover
County Commissioners on the morning of May 16. He said Chairman Burton would be giving a
presentation at approximately 9:30 a.m. In response to Mr. Lennon's question, Mrs. Routh
stated Bruce Shell, the County Manager, had agreed to put the Airport Authority's report first on
the agenda right after the consent items.
Mr. Rosborough discussed with Authority members a proposal to raise the maximum dollar
amount levels for purchases and approvals. After some discussion between Authority members
and staff, it was the consensus of opinion that maximum dollar amount levels for purchases and
approvals should be raised to $1 ,000 for Purchase orders, $10,000 for the Airport Director, and
$20,000 for the Authority Chairman, for approval at the Regular Meeting.
ADJOURNMENT
There being no further business to carne before the Board, Chairman Burton adjourned the
meeting at 6:20 p.m.
Prepared by: Respectfully Submitted:
Sandy Louth
John D. Kennon, Secretary