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1993-04-13 Work Session NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION WITH AIRPORT AUTHORITY, April 13, 1993 ASSEMBLY The New Hanover County Session with the New Hanover April 13, 1993, at 7:00 A.M., New Hanover International Wilmington, North Carolina. BOOK 23 PAGE 408 Board of Commissioners held a Work County Airport Authority on Tuesday, Second Floor Airport Conference Room, Airport, 1740 Airport Boulevard, Members present were: Commissioners Sandra Barone; WilliamA. Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.; Chairman Robert G. Greer; Deputy County Manager, Mary Gornto; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Members present from the Airport Authority were: John G. Ashby; Paul E. Gregory; H. Thompson King III; Shirley T. McQueen; and Chairman William Schwartz. Chairman Greer called the meeting to order. Airport Chairman Schwartz reported the purpose of the meeting is to present a status report on the activities of New Hanover International Airport. PRESENTATION OF STATUS REPORT The following Status Report was presented: TRAFFIC REPORT: Passenger traffic continues to grow at 3-7% over the national average; general aviation is down; Customs traffic is up 28%; and outboard cargo is down. Overall, the Airport is continuing to increase its traffic and it is anticipated that this growth will continue for the upcoming fiscal year. CAPITAL PROJECTS: The following information was presented: Air Rescue Fire Station Plus Security Upgrades Total Cost FAA Funding State Funding Local Funding Taxiway B Extension Total Cost FAA Funding State Funding Local Funding Joint Cleaning/Sealing Total Cost FAA Funding State Funding Local Funding High Intensity Runway Lighting System Total Cost FAA Funding State Funding Local Funding Land Acquisition Maintenance Hangar Modifications Total Cost Runway 17-35 Rehabilitation Total Cost FAA Funding State Funding Local Funding Airport Layout Plan Total Cost FAA Funding State Funding Local Funding National Pollution Discharge $1,886,584 $1,615,209 $ 96,399 $ 174,976 $1,570,900 $1,413,810 $ 78,545 $ 78,545 $ 91,500 $ 82,350 $ 4,575 $ 4,575 $ 450,105 $ 405,094 $ 22,506 $ 22,505 $22,000,000 $ 655,600 $ 4,013,653 $ 3,612,287 $ 200,683 $ 200,683 $ $ $ $ 100,000 90,000 5,000 5,000 Approximate Cost: $8,000 $10,000 NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION WITH AIRPORT AUTHORITY, April 13, 1993 BOOK 23 PAGE 409 Elimination System Cost (Wash Rack) International Terminal Office In the Design Phase Obstruction Clearing Continuing Problem Airfield Marking Total Coast $ 6,000 Weather Forecasting Office Development by NOAA to start in June 1993 with completion by May 1994. Irrigation System Total Cost (Project Completed) $ 48,889 Storm Damage Repair Total Cost (To be paid by Insurance Company) $ 43,580 Discussion was held on land acquisition. Out of the $22,000,000 appropriated, $15,000,000 is scheduled for land acquisition. Funding for the purchase of land will be generated as follows: $4,700,000 from implementation of the $3.00 passenger facility fee to be implemented on January 1, 1994; $9,000,000 from the Airport Improvement Program; and $3,000,000 from the State. No County funds will be requested for land acquisition. Money generated from the passenger facility fee cannot be used for operating costs, but can be used for any project that qualifies under the Airport Improvement Program. Emphasis was placed on the importance of acquiring land as needed and staying ahead instead of behind in this area. PERSONNEL personnel employees statutory REPORT: Through a reduction ln force and attrition, has been reduced by 15% with the total number of now at 34. These employees have been able to meet all requirements through cross-training. FINANCIAL REPORT: The following financial reports were presented: -Cash Report -FY 1993-94 Budget -Five-Year Financial Plan Emphasis was placed on the reduced amount of funding required from the County for the operation of the Airport. The budget request for FY 1993-94 is $321,700 of which $52,000 is required for operating capital. GOVERNMENTAL AFFAIRS COMMITTEE REPORT: Emphasis was placed on the number of FAA grants awarded in the amount of $14,000,000 due to the aggressive action taken by the Airport Authority. The Authority has an excellent working relationship with the Senators and Congressmen and is now in the position to compete for a $1,500,000 FAA grant. ENABLING LEGISLATION FOR AMENDING THE AIRPORT AUTHORITY CHARTER Chairman Schwartz reported Representative Wright has introduced a local bill to allow the Airport Authority more flexibility in economic development of the Airport. This action was recommended by bond counsel. Commissioner Greer expressed concern for the Commissioners not being informed of the local bill and stated usually all local bills are channeled through the Board. Commissioner Barone strongly objected to reading about the introduction of a local bill in the newspaper without being informed, and she requested that this action not occur in the future. NEW HANOVER COUNTY BOARD OF COMMISSIONERS WORK SESSION WITH AIRPORT AUTHORITY, April 13, 1993 BOOK 23 PAGE 410 Chairman Schwartz apologized for the misunderstanding and stated he thought the Commissioners knew about the proposed legislation since he had discussed airport matters with each County Commissioner at a separate time. Although, the Airport Authority is completely independent and autonomous by its charter; the Authority desires to keep the Board of County Commissioners informed on the activities of the Airport. vice-Chairman Mathews expressed concern for hearing that negotiations with the tenant for leasing of the airport hangar were off and inquired as to why the Commissioners have not been informed of this occurrence? Chairman Schwartz reported the firm had financial backers who were willing to underwrite the proj ect; however, the financial backers withdrew their support. When learning of the problem, the Airport Authority informed the company that unless all financial obligations were met, the Airport could not negotiate the transaction. The firm has been trying to obtain another backer and may still be able to meet its financial requirements. Emphasis was placed on the fact that not one dime of the County's funding appropriation has been released or will be released if the financial obligations are not met. Discussion was held on the usage of space in the old terminal building by the Sheriff's Department and the fact that this space could be rented by the Airport for generation of additional revenue. It was concluded that the ramp is the most valuable land at the Airport and if a more suitable tenant is found, the Commissioners should be contacted. ADJOURNMENT In summary, it was agreed that both bodies should meet at least twice a year in order to discuss the acti vi ties of the Airport. Chairman Greer, on behalf of the Board, expressed appreciation to the members of the Airport Authority and staff for the excellent job being performed in operating the Airport. Chairman Greer adjourned the Work Session at 8:55 A.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board . . . ~ MINUTES OF WORK SESSION WITH AIRPORT AUTHORITY APRIL 13, 1993 PAGE 410 Chairman Schwartz apologized for the misunderstanding and stated he thought the Commissioners knew about the proposed legislation since he had discussed airport matters with each County Commissioner at a separate time. Although, the Airport Authority is completely independent and autonomous by its charter; the Authority desires to keep the Board of County Commissioners informed on the activities of the Airport. Vice-Chairman Mathews expressed concern for hearing that negotiations with the tenant for leasing of the airport hangar were off and inquired as to why the Commissioners have not been informed of this occurrence? Chairman Schwartz reported the firm had financial backers who were willing to underwrite the project; however, the financial backers withdrew their support. When learning of the problem, the Airport Authority informed the company that unless all financial obligations were met, the Airport could not negotiate the transaction. The firm has been trying to obtain another backer and may still be able to meet its financial requirements. Emphasis was placed on the fact that not one dime of the County's funding appropriation has been released or will be released if the financial obligations are not met. Discussion was held on the usage of space in the old terminal building by the Sheriff's Department and the fact that this space could be rented by the Airport for generation of additional revenue. It was concluded that the ramp is the most valuable land at the Airport and if a more suitable tenant is found, the Commissioners should be contacted. ADJOURNMENT In summary, it was agreed that both bodies should meet at least twice a year in order to discuss the acti vi ties of the Airport. Chairman Greer, on behalf of the Board, expressed appreciation to the members of the Airport Authority and staff for the excellent job being performed in operating the Airport. Chairman Greer adjourned the Work Session at 8:55 A.M. Respectfully submitted, q?V ~ Lucie F. Harrell Clerk to the Board .....