HomeMy WebLinkAbout2011-12-07 Agenda Review New :Hanover County Airport Authority
December 7, 2011
Page 1
NEW I- ANOVER COUNTY AIRPORT AUTHORITY
AGENDA REVIEW MEETING
December 7, 2011
ASSEMBLY
The New Hanover County Airport Authority met for Agenda Review on Wednesday, December
7. 20 11, at 4:1 p.m., in the Executive Conference Room at Wilmington International Airport,
740 Airport Boulevard Wilmington, Forth Carolina.
Airport Authority members present were Charles Days, vice - Chairman; Robert R.ippy,
Secretary; Tom Barber and Al Roseman. John Lennon, Chairman, was absent. Also present
were Jon R.osborough, Airport Director; Julie Wilsey, Deputy Airport Director; Jim Morton, 0
X IIIiUIX% e D11 tor r ur y Br ough to n, Oper tii ins Dircctor ; � V 111tn.ey Pr ease, Facil ties Director
Sandra Routh, Executive Assistant; Wanda Copley, New Hanover County Attorney; and Steve
Bright and Amy McLane. Talbert & Bright, Inc.
Vice-Chairman Days called the meeting to order and then called on staff members to discuss the
agenda for the Authority's December 7, 2011, Regular Public Meeting.
AGENDA. ITEMS
Special Events: Mr. Broughton had no special events to discuss.
Finance Report: Mr. Morton reviewed actual revenue and expenses for October in relation to the
budget, stating it was a very good month. He discussed the extension of the AirLink building
lease with Air Wilmington for five one --year extensions through February 2017.
Dr. Roseman questioned Mr. Morton about the lease for Air Wilmington's self - service fuel site.
Mr. Morton replied that it was part of a master lease, and he would research the amount in
question and get back to Dr. Roseman with a response.
Mr. Morton reported on the new credit parking lot which opened on the Tuesday before the
Thanksgiving holiday, stating that 191 spaces were used. All of the other parking lots were
filled.
In response to Dr. Roseman's inquiry at a previous meeting, Mr. Dorton displayed and discussed
several charts summarizing his recent informal banking services survey. Presentation revealed
BB &T is providing the most competitive banking services.
Facilities: Mrs. , 'Wilsey discussed consent items for Authority members' approval at the Regular
Public Meeting, including a contract with Progress Energy to bury a portion of an overhead
power line traversing the VA site. She commented that staff was still working with Progress
Energy to get an estimate for installing all VA site power lines underground; however, Progress
Energy has been backed up, and staff will obtain that estimate for Authority members as soon as
it is available.
New Hanover County Airport Authority
December 7, 2011
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Continuing with her discussion of consent items, Mrs. Wilsey recommended approval of a
Change order with Barnes & Powell for the RWY 6--24 PAPI Project, and an amendment to the
Work Authorization with Talbert & Bright for the construction administration, inspection and
testing for the RWY 6 -24 PAPI Prof ect.
Mrs. Wilsey recommended approval of a Fork Amendment to the contract for the architectural
design of the checkpoint modifications. She discussed in depth and displayed a digital 3--D
rendering of the security checkpoint design by John Rees, the architect, to accommodate the
ATR Advanced Imaging Technology (AIT) machines [displays a stick figure], which are
scheduled to be installed in 2012. There was a brief discussion between Mr. Rippy and Mrs.
Wilsey about potential delays resulting from having only one ATP. machine, with Mr. Rippy
suggesting staff have an agreement with TSA that when the checkpoint line backs up to a certain
point t ICY would begin using the magnetometer to alleviate further delays. Dr. Roseman
questioned whether it was a requirement to modify the security checkpoint, and Mrs. Wilsey
responded that the airport was required to make the area accessible for the ATR machine; TSA
will move the power and install the equipment. Staff has been working with the architect, as
well as TSA and Tailwind, the restaurant, to develop a design that would maintain the ambiance
and Southern charm of the atrium. Mr. Morton explained the reasoning behind relocating the
restaurant post- security, where 70 percent of Tailwind's business is generated. Construction may
start as soon as February or March 2012, with an estimated completion date of July 2012. There
was a discussion among Authority members and staff about the design, the equipment, and
funding responsibilities regarding different aspects of the project.
Mrs. Wilsey discussed two additional action items for Authority members' approval. They are a
Change order with Trader Construction and a work. Authorization with Talbert & Bright for
inspection and construction administration. The work, which is part of ILM's Stormwater
project, involves the repair of drainage pipes on the airfield outside the safety areas. The FAA
has approved using AIP 42 grant money to fund the repair work.
Mrs. Wilsey recounted a meeting with the FAA to discuss ILM's Capital Improvement Program
(CIP), a five -year program delineating projects for ILM's AIP entitlement funding and potential
projects for discretionary funding for each year. She related the FAA has programmed $1.9
million in discretionary funding for ILM to extend RWY 17 and TwY A. There was a
discussion among Authority members, staff and Mr. Bright recapping the history of the approval
and maintenance responsibilities for the ILS's and MALSR's. Mrs. Wilsey summarized that
coordinating with the FAA in reference to ILM's CfP was significant to the award of
discretionary funding.
Mrs. Wilsey reported that although the new credit card parking lot opened before the
Thanksgiving holiday, the project went over by 26 days; therefore liquidated damages will be
assessed. WK Dickson went over its budget for part -time inspections by $4,720. Staff proposes
approving an amendment to WK Dickson's work Authorization and assess liquidated damages
to the contractor, ECC, in the amount of $13,000. S &ME carne in under their budget for testing.
Mrs. Wilsey advised final actual costs would available at the next meeting. Mr. Rippy requested
a unit cost per space for future comparison.
New Hanover County Airport Authority
December 7, 20 11
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In reference to the RWY 6 -24 PAP/ Project, Mrs. Wilsey reported the contractor will be putting
additional workers on the job during the day; however, to put additional workers on the job at
night would cost more and be less productive. Therefore, RWY 6-24 will be closed Monday
through Friday and reopen on the weekends in January.
Government: Mr. Rosborough reported the Mouse approved HR 1801, allowing the TSA to
implement expedited screening for military personnel and their dependents, and he anticipates
the Senate will also approve this bill.
Mr. Rosborough advised that United and Continental will follow suit the same as Delta and
American Airlines in implementing a pre -check program for their frequent filers. This involves
a more intensive background check for expedited screening through security checkpoints. Mr.
Pistol, hL.at`�! V T A, l cxs app VC UI 1 pal Ll.c pC�'IL1VI1 _ I I t1 pilot stud
Marketing and Public Relations: Mr. Barber questioned Authority members and staff about
whether or not ILM should have some input on the Wilmington City Council's proposal that any
additional area hotels must be built downtown. After a brief discussion, it was decided it was not
necessary for the airport to comment, as the airport is in New Hanover County, and not affected
by the city's proposal.
Mr. Morton reported on a meeting with Wilmington Industrial Development (WID) to discuss
promoting ILM's Business Park. From its association and contact with site selectors, WID
developed a list of specific site selectors for ILM to conduct direct marketing of it Business Park.
Discussion also included marketing material formats and possibly inviting key site selectors to
Wilmington to see what we have to offer. Mr. Barber commented they also discussed the types
of businesses that might co- locate with the VA medical facility. There was a brief discussion
between Dr. Roseman and Mr. Morton concerning a restaurant locating in the Business Park.
Dr. Roseman handed out copies of THE GLOBE. a daily publication targeting the Marine
population in Southeastern North Carolina. Mr. Morton advised ILM is running a series in the
Business Profile of this publication. Dr. Roseman suggested providing a source of information
about ILM's available flights.
Planning and Development: Mr. Morton reported construction of the VA medical facility was
progressing. Mrs. Wilsey stated a crane will be on site during the March -April timeframe, which
had passed the FAA's obstruction review.
Operations Report: Using charts for illustration, Mr. Broughton reported ILM's airport statistics
for the month of November, including fuel price comparisons, fuel flowage amounts, airfare
comparisons with MYR, RDU, FAY and OAJ, and total passengers handled. He stated the load
factor for November was 84%. He reviewed statistics for aircraft and people cleared through
Customs for the month of November.
Dr. Roseman asked about ILM's load factor to LGA. Mr. Broughton responded that the LGA
load factor was approximately 83% for November. There was a brief discussion among Mr.
Rosborough, Mr. Barber and Dr. Roseman about the rising LGA airfare.
New Hanover County Airport Authority
December 7, 2011
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Directors Report: Mr. Rosborough discussed American Airlines' Chapter I I Bankruptcy as
being helpful to ILM. His reasoning was that all other domestic airlines had already filed
Chapter I I Bankruptcy in the past and carne out in a much stronger position, making it difficult
for American .Airlines, with its more costly airfares, to compete in the domestic market. He
predicts American Airlines will be repositioned in a more favorable environment. Mr.
Rosborough indicated he had spoken with Mr. Robert Emrich, American Airlines' Regional
Director for Scheduling.
Mr. Rosborough reported that Deloitte, an accounting firm, did a study for the FAA, and is
projecting that business air travel will increase in 2012. If this holds true, Mr. Rosborough
advised it will be good for ILM, because a large percentage of our passenger mix is business.
Mr . P�os boroiig h spoke about How tvVell tie meeting wdt1 thle FAA. wen iii Atlanta to discuss
ILM's CIP, and how invaluable that relationship is for ILM's economic future.
Mr. Rosborough described a meeting with Delta to discuss the LC A /DCA slot swap.
Dr. Roseman asked Mr. Rosborough about an article he had read about dropping Regional Jets
(RJs), because they cost more to operate. Mr. Rosborough related the cost of fuel will either
maintain or go higher, and the RJs are less efficient to operate. So, a lot of the airlines are
ordering new aircraft; there is a projection that RJs will be phased out by 2020.
Mr. Rosborough announced Mike Landguth, formerly the Airport Director at Chattanooga, is
RDU's new Airport Director. He serves with Mr. Landguth on the AAAE .ALA Committee and
believes Mr. Landguth is an excellent choice for RDU.
Mr. Broughton reported ILM received a letter from the FAA on October 28 requesting an
investigation of the recent incursion (which happened on October 24), with a deadline of
November 9 to respond. The report of investigation was returned on November 3. The
investigation is now with Mr. Jim Price, the FAA investigator in charge, and no reply has been
received as of this date. In response to Mr. Rippy's question, Mr. Broughton stated normally in
the past, a letter would be received closing out the claim and indicating the FAA could find no
violation of Part 139. However, Mr. Broughton said the FA.A. could find a violation, and
potentially there could be a civil penalty imposed on the airport. Mr. Rosborough commented
the FAA. maintains a national database for incursions, and currently the Southern region has the
most incursions.
Mrs. Copley stated there is a provision in each tenant's lease that they must abide by all FAA
regulations and all ILM regulations, and she indicated that if the FAA decides the incursion is
the tenant's fault and assesses a fine, that fine should be passed on to the tenant involved.
Dr. Days asked if larger airports have any punitive fees assessed against individuals for
incursions. Mr. Broughton responded there is no protocol; however he believes any fine can be
passed along to the responsible party.
Mr. Barber suggested staff determine whether other small airports have a policy of assessing
fines or punitive fees against tenants for safety violations or incursions, and look at the
possibility of developing a policy for doing so at ILM.
New Hanover County Airport A thori ty
December 7, 2011
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ADJOURNMENT
There being no further business to come before the .hoard, Vice Chairman Days adjourned the
meeting at 5:55 p.m.
Prepared by: Respectfully Submitted:
Sandy Routh
Robert S. Rippy, Secretary