HomeMy WebLinkAbout2011-07-06 Regular Meeting New Hanover County .Airport Authority
July 6, 2011
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NEW HANOVER COUNTY AIRPORT AUTHORITY
REGULAR PUBLIC MEETING
July 6, 2011
CALL TO ORDER
The New Hanover County Airport Authority met on Wednesday, July 6, 2011, at Wilmington
International Airport, 1740 .Airport Boulevard, Wilmington, North Carolina. Chairman Burton
called the meeting to order at 5:08 p. m.
Airport Authority members present were Paul Burton, Chairman; Robert Rippy, vice - Chairman,
John Lennon, Secretary; Charles Days, Harry Stovall, and newly appointed Airport Authority
members, Torn Barber and Al Roseman. Also present were Jon Rosborough, .Airport Director;
Julie Wilse Deputy nirport Director; Jim Morton, Finance Director; Cary Broughton,
Operations Director; Whitney Prease, Facilities Manager; Sandra Routh, Executive Assistant;
Wanda Copley, New Hanover County Attorney; Sheila Schult, Clerk to the New Hanover
County Board of Commissioners; Richard Masters, The Masters Croup, Inc.; and Steve Bright
and Any McLane, Talbert & Bright, Inc.
APPROVAL OF MINUTES
The Authority has reviewed the minutes of the Agenda Review and regular Public Meeting on
June 1, 2011. Mr. Kennon MOVED, SECONDED - by Dr. Kays, to approve the minutes of the
June 1, 2011 Agenda Review and Regular Public Meeting as submitted. Upon vote, the
MOTION WAS APPROVED UNANIMOUSLY.
SWEARING -IN & ELECTION DP OFFICERS
At this time, Chairman Burton turned the meeting over to Mrs. Copley, who introduced Sheila
Schult, Clerk to the New Hanover Counter Board of Commissioners, to administer the oath of
Office to Mr. Barber and Dr. Roseman.
Mrs. Schult administered the oath of office to Mr. Barber and Dr. Roseman, and presented there
with a certificate commemorating the occasion.
Mrs. Copley recognized the Airport Authority Nominating Committee for the election of
officers.
Dr. Kays, as Chairman of the Nominating Committee, presented the following slate of officers
for Fiscal Year 2012:
Mr. John Lennon, Chairman
Dr. Charles says, 'Vice- Chairman
Mr. Robert Rippy, Secretary
There being no further nominations and /or discussion from the floor, Mrs. Copley called for a
vote to accept the slate of officers as nominated by the Nominating Committee.
Vote: .Authority remembers voted unanimously to approve the slate of officers for Fiscal Year
2012, as nominated.
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July 6, 2011
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Mrs. Copley congratulated the new board members and the newly elected officers and turned the
meeting over to Chairman Lennon.
HAIL & FAREWELL
Chairman Lennon, on behalf of the Airport Authority and staff, presented Mr. Burton and Mr.
Stovall each with a plaque and a gift in appreciation for their many years of dedicated service to
the airport.
Mr. Burton and Mr. Stovall briefly commented that they had enjoyed working with Authority
members and staff.
Mr. Burton, Mr. Stovall and Mrs. Schult departed the meeting at 5: 16 p.m.
Chairman Lennon congratulated and welcomed Mr. Barber and Dr. Roseman upon their
appointment to the Airport Authority, stating he looked forward to working with there.
RECESS
Chairman Lennon recessed the Regular Meeting to go into the Agenda Review Meeting at 5 :17
p.m.
RETURN TO REGULAR MEETING
T`ING
Chairman Lennon called the Regular Meeting back to order at 7:05 p.m.
ITEMS BY THE PUBLIC
Where were no comments from anyone attending the meeting.
FINANCE REPORT
Mr. Morton reviewed ILM's cash report for the month of May for Authority members.
Mr. Dorton reviewed ILM's summary of accounts for the month of May for Authority members.
In response to a question from Chairman Lennon, Mr. Morton stated the PSO Seized Funds
account would be reopened if funds were to be received. Mr. Morton stated the funds were used
to purchase lockers and other PS 0- related items.
FACILITIES
Mrs. Wilsey reported the Customs Ramp Rehabilitation Project was complete. She stated there
were two projects up for public bid on July 28th for ILM's AIP entitlement and discretionary
grants with the FAA. The status of the bids will be available at the next board meeting; however,
the contracts will not be awarded until the grants are received.
GOVERNMENT
There were no government issues to discuss at this meeting.
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July 6, 20 11
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MARKETING AND PUBLIC RELATIONS
Mr. Morton informed Authority members that marketing was continuing to focus on the new
Chicago service, the non -stop Washington, DC flights and the Allegiant Air specials.
PLANNING- & DLVELOPMIENT
Mr. Morton informed Authority members that the Lift Station Project was complete. He stated
the developer for the V.A. Medical Facility was moving forward and hoping to break ground in
late August. The Congressional office or the VA will be taking the lead for the groundbreaking
ceremony. After the facility is completed, there will probably be a grand opening ceremony.
also.
OPERATIONS REPORT
Mr. nrougliton stated A ree total nLx rnber of passengers handled in .Tune was 7 I ,023 �35, 7uzs
enplanements + 35,315 deplanernents), which is 7.9% less than June 2010. The total passengers
handled year -to -date was 375,430. which is 0.1 % more than the year --to -date statistics for June
2010.
Mr. Broughton stated ILM's load factor for June was 91.6%.
The monthly fares and fuel comparisons have been completed for June 2011.
Mr. Broughton reported ILM's international traffic using US Customs statistics for June: 109
aircraft were cleared, which is 7.9 more than June 2010; and 595 persons were cleared, which
is 21.2% more than June 2010. Year -to -date, US Customs has cleared 1,178 aircraft, which is
4.7% Tess that 2010, and 6,735 persons, which is 4.5% less than 2010.
Mr. Broughton reported the FAA completed ILM's annual FAR Part 139 Airport Certification
Inspection on June 8 and there were no written discrepancies.
Chairman Lennon congratulated the ILM team for a great job on accomplishing six years in a
row with no discrepancies on the FAR Part 139 Airport Certification Inspection.
DIRECTORS REPORT
Mr. Rosborough also congratulated the ILM team on the FAR Part 139 inspection, stating that
achieving six years with no discrepancies was quite a feat.
Mr. Rosborough reported that Mr. Masters gave his quarterly air service report to Authority
members during the Agenda Review Meeting.
M r. Rosborough described airline Business -to- Business Loyalty Programs, whereby an airline
partners with a business so that when its employees fly with that particular airline, the business
receives matching loyalty points. American Airlines has this type of program, called its
American Advantage. This will allow ILM to promote American Airlines to local businesses,
since business customers represent 71 to of our passenger mix.
Mr. Rosborough updated Authority members concerning ILM's No. I destination, New York
(LGA), and the Delta — US Airways slot swap proposal to the US Department of Transportation
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July 6, 2011
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(DOT) and the US Department of Justice (DOJ). US Airways wants to promote greater focus on
their Washington, DC (DCA) market, and Delta wants to enhance its New York (LGA) market.
Their first proposal was rejected by the DoT and the DOJ. It appears the DoT and DOJ will
approve their second proposal. US Airways will be giving up approximately 122 LGA slots to
Delta, and in return, Delta will be giving up 48 DCA slots to US Airways. Mr. Rosborough
commented that with the first proposal, ILM was one of US Airways' protected locations;
however, with the second proposal, it is uncertain how ILM will be impacted, since US Airways
is releasing more slots. ILM could lose one, two or (worst case scenario) all three daily LGA
bights. He estimated it would take approximately 12-18 months before the slot -swap would
impact ILM. In the meantime, Mr. Rosborough stated he and Mr. Masters would be promoting
New York service to Delta and other airlines. He said staff is also promoting daily DCA service
with US Airways. Mr. Broughton commented that the load factors for the current DCA weekend
service was zsz inDOUna ana 6 f "Io ouznouna.
Mr. Rosborough reported that TSA employees have unionized with the American Federation of
Government :employees (AFGE). Rep. John Mica (R --FL), who heads the Aviation Sub -
Committee in the House, has proposed that more airports now be allowed the opportunity to opt -
out:. Mr. Rosborough stated staff would continue to follow this issue to see if this may be an
option Authority members would like to pursue. Dr. Roseman commented that all of the
complaints he has heard about ILM are TSA related. Mr. Rosborough and others commented
that overall, they have received very positive remarks from customers about ILM's TSA
employees.
Dr. Roseman asked if ILM pays for TSA's services, and Mr. Rosborough responded "No." Dr.
Roseman then asked that if ILM decides to opt -out, would it have to pay for the security
screening services, and Mr. Rosborough responded, "Yes." Dr. Days asked if there was a federal
subsidy to assist with the payment of this service, and Mr. Rosborough responded. "No."'
Mr. Broughton stated that airports currently cannot opt -out, as the privatization option was closed
by TSA. after the initial 16 airports opted out. He said this is what Rep. Mica is trying to
overturn. Mr. Broughton commented that if airports are allowed to opt -out, TSA 's contract
vendors will decide who will work at the airports. He said the upside to this is that the airports
will have some input about their customer service, and the screeners will not be unionized.
Chairman Lennon commented he had no preference concerning the TSA. issue, as long as their
unionization doesn't cost ILM any money..
Dr. Roseman asked if ILM staff currently has any control over the TSA employees. Mr.
Rosborough stated that staff has a good rapport with TSA.'s on -site Assistant FSD and can easily
address any concerns with her. our overall working relationship with TSA is very positive.
Mr. Rosborough reviewed the July and August calendars.
ACTION ITEMS
Mr. Rippy MOVED, SECONDED by Dr. Days, to approve the following amended Action Items
(Chairman Lennon added verbiage concerning input from the airport's attorney to item #3):
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July 6, 2011
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1. Approve a contract with DID Consultants for the design, bidding and commissioning
of a new passenger boarding bridge at Gate 7. Cost not to exceed $51,000.
2. Approve a contract with Reese Architects to design the Checkpoint Expansion Project.
Cost not to exceed $14,000.
3. Commit to approve payment for repairs to Airport Boulevard pavement dip if the issue
was not caused by CFPI..]rA water /sewer lines, with input from the airport's attorney.
4. Approve a Change order with Barnhill under the existing contract for pavement
repairs to Airport Boulevard to be reimbursed by CFPUA.
D. Approve a contract with the winning bidder for the relocation of the water line and
extension of the sewer line for VA site in an amount not to exceed $226,000.
Upon vote, the MOTION WAS APPROVED UNANIMOUSLY.
UNFINISHED BUSINESS
Mr. Rosborough announced that July 2nd was Chairman Lennon's birthday, and everyone
wished him a "happy Birthday. "
NEW BUSINESS
Chairman Lennon announced that board member committee assignments for FY 2012 will be:
Dr. Charles Days — Finance
Dr. Al Roseman -- Government
Mr. Torn Barber — Marketing & Public Relations
Mr. Robert Rippy — Planning & Development
Mr. John Lennon — Facilities
OTHER ITEMS BY THE AUTHORITY
Chairman Lennon reminded all Authority members to be familiar with the New Hanover County
Commissioners' Code of Ethics that was adopted unanimously by the Airport Authority at its
January 5, 2011 meeting, and distributed copies of the swine to each board member.
ADJOURNMENT
There being no further business to carne before the Board, Mr. Rippy MOVED, SECONDED by
Dr. Kays to adjourn. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY.
Chairman Lennon adjourned the meeting at 7:33 p.m.
Prepared by: Respectfully Submitted:
Sandy Routh
Robert S. Rippy, Secretary