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HomeMy WebLinkAbout2011-09-07 Agenda Review New Hanover County Airport Authority September 7, 2011 Page 1 NEW HANOVER. COUNTY AIRPORT AUTHORITY AGENDA REVIEW MEETING September 7, 2011 ASSEMBLY The New Hanover County Airport Authority met for Agenda Review on Wednesday, September 7, 2011 , at 4:02 p.m., in the Executive Conference Room at Wilmington International Airport, 1740 airport Boulevard, Wilmington, North Carolina. Airport Authority members present were John Lennon, Chairman', Charles Kays, Vice Chairman; Robert Rippy, Secretary; Torn Barber and Al Roseman. Also present were Jon Rosborough, Airport Director; Julie Wilsey, Deputy Airport Director; Jim Dorton, Finance Director; Gary Broughton, Operations Director; Whitney Prease, Facilities Manager; Sandra Routh, Executive Assistant; Wanda Copley, New Hanover County attorney; and Steve Bright and Amy McLane, Talbert & Bright, Inc. Additional attendees included Doug Holdstein, .Air Link, Don wheeler, 'wheeler &.Associates Business .Advisors, LLC; and Reynold Bishop, Pelican Aviation Consulting, Inc. Chairman Lennon called the meeting to order and turned the meeting over to Jon Rosborough, Airport Director, who introduced Doug Holdstein of Air Link, one of ILDi 's tenants, to make a presentation. Mr. Holdstein briefly described how .Air Link came into being and its history, stating that on September 1, 2001, their first patient was transported. Mr. Holdstein expressed Air Link's appreciation to Jon Rosborough, Julie Wilsey, Jinn Dorton, Cary Broughton, Whitney Prease, Marvin Foster, and Gloria Vaughn. In celebrating their ten -year anniversary, Dr. Holdstein presented the Airport Authority a model of the Air Link helicopter. on behalf of the Authority and ILM staff, Chairman Lennon thanked Dr. Holdstein, stating they looked forward to their partnership for the next ten years and beyond. Dr. Rosborough then introduced Dr. wheeler, a business advisor working with Mr. Ken Vojta, the FBO operator for Aero Services, .Inc. Chairman Lennon explained the Authority received Dr. wheeler's letter dated August 1.5, 2011, and welcomed his comments; however, he stated the Authority would probably not make any decisions during this meeting, but would respond through the staff. Mr. Wheeler thanked the Authority for the opportunity to speak at this meeting, and introduced Dr. Bishop, who also was working with Mr. Vojta. Dr. wheeler explained that fir. Vojta had expressed having concerns about some business issues and had requested Dr. wheeler and Dr. Bishop conduct a third -party review of his situation. He stated that he evaluated the business side of Dr. Vojta's FBO business, and Dr. Bishop, being a retired FAA Compliance Enforcement Specialist, evaluated the FAA standards compliance side of Dr. Vojta's business. Dr. wheeler conveyed that he and Dr. Bishop had several meetings with airport management staff to include the airport director to discuss several issues pertaining to Aero Services lease. New Hanover County Airport Authority S eptember 7, 2011 Page 2 Mr. Wheeler informed Authority members that he and Mr. Bishop, on behalf of Mr. Vojta, have filed an FAA .Part 13 Complaint requesting an informal investigation. As a courtesy, he provided a copy of the complaint to Chairman Lennon. Chairman Lennon stated that s ince the complaint already had been filed, he felt Authority members should have a chance to review it and decide how they wanted to respond to Mr. Vojta's two issues involving runway /taxiway crossings and the extension of Aero Services' lease. Mr. Wheeler agreed these were the two core issues; however he stated there were many other issues related to those core issues. Chairman Lennon stated Authority members Would review the complaint, and respond with their decision. Mrs. Copley asked if either Mr. Wheeler or Mr. Bishop Were attorneys. Each of them responded .,A- n� .t. � � ��� c`ry_ tea_ y_ � *r A n y_ 1 ] 1 � _ -�1_ _I_ �I_ LIIUL LIMY W ere not - at torn 3111 LIIe 1 aS CU l ACYU 3efV!Ces llau letyal C OLlllsel iLll WIIC.I .I.I SIle might communicate as to what can and cannot be public record, stating she would like to deal With this issue from a legal standpoint. Mr. Wheeler responded Aero Services had no attorney of record at this time, stating it was their desire to resolve issues With airport management at the local level. Mrs. Copley stated that since Mr. Wheeler and Mr. Bishop had mentioned the process of informal and formal FAA. complaints and having sworn statements, she encouraged there (on behalf of Aero Services) to obtain an attorney, so that she could respond on behalf of the Airport Authority and deal With Aero Services' complaint. She said that if the FAA. complaint process gent to the formal level, there Would be discovery, depositions, etc., and she would need to represent her client — the Airport Authority. At this point, Chairman Lennon proposed concluding the discussion with Mr. Wheeler and Mr. Bishop, giving Authority members and ILM staff an opportunity to review the complaint, discuss its contents With the Authority's attorney and the FAA, and respond subsequently by either inviting there to another forum or in Written correspondence. Mr. Bishop continued by reiterating that Aero Services' FAA Part 13 Complaint was at the informal level. Mrs. Copley commented that the complaint procedure could go to the formal level, however, and encouraged there to obtain legal counsel and have their attorney contact her. She stated the procedure could go into protracted litigation, and it Would not be fair for their client to be Without the benefit of legal counsel, While she is legal counsel for the Airport Authority. Mr. Bishop asked Mrs. Copley Whether she had ever dealt with AS07 out of Atlanta, and she responded that she had not, but that she could. He commented further that AS07 out of Atlanta was the legal branch of the FAA division, and recognizing that this is an informal complaint, should the agency decide that a formal investigation was warranted, their attorneys Would get involved. In response, Mrs. Copley stated she would certainly get involved at that time; however, at this tune, to protect the Authority from any statements that could be used against there, and to advise there in reference to any documents requested for release, she would need to communicate with counsel of record for Aero Services. Mrs. Copley encouraged Mr. Bishop to seek counsel for his client before getting into an adversarial relationship in the formal complaint process. New Hanover County Airport Authority September 7, 2011 Page 3 Chairman Lennon concluded the discussion by expressing the Authority's appreciation to Mr. Wheeler and Mr. Bishop for their presentation and assuring them that their client's complaint would be heard, whether in a similar forum or through the complaint process. He stated the Authority would respond accordingly. Mr. wheeler and Mr. Bishop exited the meeting at 4:28 p.m. Chairman Lennon called on staff members to discuss the agenda for the Authority's September 7, 2011, Regular Public Meeting. .AGENDA. ITEMS Special .Events: Mr. Broughton stated IL.M's new fire truck would be delivered in approximately _' S. Lwo wee - K Finance Report: Mr. Morton explained that due to the current ongoing annual financial audit, the monthly financial summary was unavailable. He stated the audit was going well. Mr. Morton explained he needed Authority approval for an assignment of the VA lease agreement between the developer and the lender, and a non - disturbance agreement to the VA lease for the County. He stated Mr. Burpeau and Mrs. Copley had reviewed both documents. Mr. Dorton stated he needed Authority approval for an extension of the Con-Way Freight lease to June 30, 2013, which included a $225 monthly increase per an agreement to reimburse the airport for the expense of correcting a well issue and extending water to the building. In response to a question by Mr. Rippy, Mr. Morton stated he had addressed the issue of the sewer line easement across the front of the property with Con -way. Mr. Morton stated he needed Authority approval for an agreement between /LM and its newest tenant, Nix-On Shine, a shoe shine service being offered in the secure gate area. He stated the Star News would be running an article about Mr. Dixon in the Sunday newspaper. In response to a question by Dr. Roseman, Mr. Morton stated the concession agreement was for a 15% com mission fee. Facilities: Mrs. Wilsey reviewed a consent item that was approved by Chairman Lennon for the demolition of an old storage building at the corner of Gardner and Hewlett Drive by Four Seasons Earthworks. Staff provided four quotes for this demolition. Mrs. Wilsey reviewed four action items for Authority members' approval. The first item for approval was to accept the FAA AIP Grant (A.IP 44). She explained the paperwork for the grant had been received, but had to be returned to OST in Washington, DC for further approval, because the grant was increased from $6.5M to $7.7M. Mr. Rosborough clarified that approximately $3M of the grant was based on ILM's enplanements or entitlement funding, and the remaining $4.6M was considered discretionary funding. In response to a question from Chairman Lennon, Mrs. Wilsey explained that as soon as the grant was signed and returned, funding would be allocated and authorized for drag down on the projects. The second item for approval was the award of a contract to Barnhill Construction Corp. for the Rehabilitation of Taxiways A, D, F and H. The third item for approval was a Talbert & Bright work authorization for the construction administration, inspection and testing for the Taxiway A, D, F and H Rehabilitation Project. Both of these action items are conditional based on final approval of the FAA AIP 44 Grant. In response to a question from Dr. Roseman, Mrs. Wilsey stated any project for $300,000 or more was subject to formal public bidding. In terms of engineering, she further explained that Talbert & Bright was New Hanover County Airport Authority September 7, 2011 Page 4 tinder a five --year contract (based on qualifications) as ILM's engineer of record for airside projects. Mrs. McLane further clarified that any construction project between $30,000 and $300,000 would be subject to an informal bidding process. Dr. Roseman subsequently questioned whether minority quotas were required to be met at all bidding levels. Mrs. Wilsey explained that under federal and state law, ILM has DBE goals that are required to be met. ors. Wilsey stated the fourth item for approval was to accept any discretionary grant offered by the FAA before the next meeting. Mrs. Wilsey reviewed some information items and updated Authority members on current projects. The Airport Boulevard Paving and Lights Project is complete except for some final paperwork and as -built documents, and ILM has a one -year warranty on the project. Barnes & Powell /ADB has completed the software upgrade on the LED Airfield guidance Sign Project, ano n signs are now working with pilot control. Mrs. vv lsey expiainect that in accorciance with a new federal requirement, ILM will set a three -year DBE goal. Ken weeden & Associates assisted staff in determining a 6.8% goal for all A.IP projects. ILM's proposed program was published in the local newspapers and will be available for public comment until October 15. She stated the goal has decreased in comparison to previous gears. Mrs. Wilsey commented that construction on the new parking lot is on going, and the contractor plans to meet the contract deadline of October 18. In response to Mr. Rippy's question, Mrs. Wilsey stated the project is about 20% complete. The grading has been done; the drainage pipe is ready to be put in; and the electrician has been working. Mrs. Wilsey reported two bids for the Gate 7 bridge were received on September 2, and the bridge consultant is evaluating the costs. She said more details would be available in several weeks. Mrs. Wilsey stated she would be attending a meeting on September 8 with John Tunstall, the developer, and CFP[.lA in reference to the Blue Clay Road Sewer Force Main. Mrs. Wilsey commented that Air Wilmington had submitted a final layout for two hangers to the FAA for an airspace study. Dr. Roseman questioned the distance the hangers would be built from the taxiway. Mrs. Wilsey said it was 30 feet. Mr. Bright commented that a sketch of the plans showed the hangers were outside of the `object free area's for the taxiway and the taxilane. Mrs. Wilsey reported the .Airport Boulevard repair by CFPUA was completed, and there is a 12-montb warranty on the paving. Government. Dr. Roseman stated that he and Mr. Rosborough had met to discuss government aviation issues. Mr. Rosborough reported the recently approved extension of the FAA Reauthorization Bill would expire at the end of September, and unless a new extension is proposed, the current extension will remain in force until the end of the year. He commented that he and Mr. Broughton had been interviewed several times by the media in connection to the ten -year anniversary of the 9/11 incident. Mr. Broughton stated the new ATR (Automatic Threat Resolution) machines should be in place sometime in 2012, which is the generic view full -body scanner, instead of the invasive view. Dr. Roseman informed Authority members and staff that he had a meeting with Senator Burr on October 1, and he requested any topics /issues be submitted to hire for discussion at that meeting. At this point, Mr. Morton added some comments in reference to Finance. In reference to the new CFC. and Rental Car Agreements effective July 1, he stated reimbursement was made for the contract ILM had with Newton and Associates. He said July was a new record month for rental car sales, which topped $1M in gross sales. Compared to last year, he said rental car revenue was up 7%, and he attributed the increase to now having Enterprise on board at ILM. New Hanover County Airport Authority September 7, 2011 Page 5 Marketing and Public Relations: Mr. Barber reported that he and Mr. Morton would be meeting with all of the advertising representatives next week. He asked about the status of the F{ TZ proposal. Mr. Rosborough replied that a sub -- committee meeting at the end of August with Mr. Catlin had to be rescheduled due to Hurricane Irene. Mr. Broughton said the FTZ sub - committee meeting was rescheduled for September 9. A brief discussion in reference to ILM developing a formal resolution in support of the FTZ ensued, and it was suggested the preparation of a formal resolution be corroborated in the Regular Meeting. Mr. Morton added that FILM would be a sponsor for the PPD Beach to Battleship triathlon for the third year in a row. Planning and Development: Mr. Morton stated there were approximately 52 acres of landside property in need of storm water drainage for the future of ILM's business park. He has received a proposal from Pararnounte Engineering for $22,000 to design a retention pond to drain those 52 acres. if the pond is designed in time, the VA developer has agreed to dig the pond to acquire the dirt. He stated this would result in substantial savings for the airport in the long run, because it is essential that storm water treatment be in place before the 52 acres can be developed. Mr. Morton suggested Authority members approve the expenditure for the design of the retention pond and move forward in partnership with the VA developer to construct storm water drainage for the business park. Mr. Morton announced the VA Groundbreaking ceremony would be on Monday, September 19, at 1:00 p.m. Operations Deport: Using charts for illustration, Mr. Broughton reported ILM's airport statistics for the month of August, including fuel price comparisons, fuel flowage amounts, airfare comparisons with MYR., R.DU, PAY and OAJ, and total passengers handled. He stated the load factor for August was 92.4 %. He reviewed statistics for aircraft and people cleared through Customs for the month of August. Mr. Broughton reported 45 flights were cancelled in August due to Hurricane Irene, which represents approximately 2,400 passengers. Mr. Lennon suggested getting information out to the press in reference to US Airways' new air bus flights beginning in October, and the retrofitting of their regional jets to reinstate first class travel from ILM. Directors Report: Mr. Rosborough commented the 45 cancelled flights due to the hurricane severely impacted ILM's statistics for August. In addition, Allegiant Air discontinued its Orlando flight on August 24 for a seasonal break until around September 30, and this will impact September's statistics. Mr. Rosborough announced that Don O'Neal from Norfolk, VA was the new acting station manager for US Airways. Dr. Roseman read aloud for Authority members and staff, an article from the wall Street Journal, entitled "May God Bless this Airline Captain in reference to a family aboard a commercial airplane accompanying the remains of their deceased military son back to their home in Virginia. New Hanover County Airport Authority September 7, 2011 Page 6 ADJOURNMENT There being no further business to come before the Board, Chairman Lennon adjourned the meeting at 5:29 p.m. Prepared by: Respectfully Submitted: Sandy Routh Robert S. Rippy, Secretary