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HomeMy WebLinkAbout2012-05-02 Agenda Review New Hanover County Airport Authority May 2, 2012 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY AGENDA REVIEW MEETING May 2, 2012 ASSEMBLY The New Hanover County Airport Authority met for Agenda Review on Wednesday, May2, 2012, at 4:01 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; Tom Barber and Al Roseman. Also present were Jon Rosborough, Airport Director; Julie Wilsey, Deputy Airport Director; Jim Morton, Finance Director; Gary Broughton, Operations Director; Whitney Prease, Facilities Director; Sandra Routh, Executive Assistant; Wanda Copley, New Hanover County Attorney; and Steve Bright and Amy McLane, Talbert & Bright, Inc. A guest, Bill Bodenhamer, USA Parking, was present. Chairman Lennon called the meeting to order and then called on staff members to discuss the 2, 2012 Regular Public Meeting. AGENDA ITEMS Special Events: Mr. Broughton stated the was scheduled to take place at the airport on Saturday, May 26th. Finance Report: Mr. Morton commented that circus revenue during the recent Azalea Festival was down about 8%. He reviewed actual revenue and expenses for the month of March in relation to the year-to-date budget, stating ILM was continuing to have a great year. For an update on parking, Mr. Morton introduced Mr. Bodenhamer of USA Parking to give a report to Authority members, stating that USA Parking has been servicing ILM since 2002. Mr. Bodenhamer passed out brochures about USA Parking to Authority members and gave a brief history of how he started the company in 1978, and it is now the #1 parking company in the world. USA Parking is a customer service oriented hospitality company. parking revenue had risen from $1.3 million in 2002-2003 to over $3 million in 2011-2012. Using technology (credit card processing years. ILM receives 90% of its parking revenue as 100% profit. Mr. Bodenhamer said USA The skycap/doorman service, which USA Parking assumed in November 2004, is a separate expense and not included in the parking service calculation. continues to grow while expenses remain the same. There was a brief discussion between Authority members and Mr. Bodenhamer, who answered their questions in reference to parking equipment, operating expenses, the skycap service and the contract termination clause. Mr. Rosborough described issues with the former parking company, which resulted in court New Hanover County Airport Authority May 2, 2012 Page 2 action. He stated that since USA Parking began servicing IL problems. parking revenue jumped from $700 thousand to $1.1 million during a difference of $400 thousand. Mr. Rosbor-year contract with USA Parking will expire on October 28, Authority members approve a five-year contract with a 30-day termination clause, to be effective at the end of October 2012. There was a brief discussion about parking lot equipment and how it -year contract renewal could be added to the action items for approval at the Regular Public Meeting. Dr. Roseman commented that Authority members should look at other options and obtain bids from other companies, because the New Hanover County Commissioners want the airport to obtain bids on services. Mr. Rippy disagreed and suggested approval at the Regular Public Meeting. Dr. Kays and Mr. Barber said they saw no reason to obtain bids. Mrs. Copley stated there was no legal requirement to bid out service contracts and suggested voting on the contract renewal would have to occur during the Regular Public Meeting. Chairman Lennon suggested voting on Dr. Roseman requested a copy of the USA Parking There being no further questions, Chairman Lennon thanked Mr. Bodenhamer for coming to the meeting and giving the parking report in person. Mr. Bodenhamer departed the meeting at 4:32 p.m. Speaking directly to Mr. Morton, Dr. Roseman stated that Authority members need to be informed in advance of issues to be brought up at meetings, and to be able to review any contracts before voting on them. Chairman Lennon responded to Dr. Roseman, stating Authority members hired the Airport Director to oversee the managerial staff and run the airport. He said the Airport Director and Deputy Director are paid to read the specifics of any contract to be voted on by Authority members. Dr. Roseman disagreed and stated that if he is going to be required to vote on a contract, he wants to review it beforehand, exercising his fiduciary responsibility. Mr. Morton reported that generating tools will realize approximately $7,000 per year, offsetting the cost of the website itself. Mr. Morton stated the familial issues between the heirs of the Acorn Branch Road property have was back on schedule. In follow-up to a discussion at the previous Authority meeting, Mr. Morton discussed the the segregation of accounting duties. He provided to Authority members -mail message indicating ILM would lose its federal AIP grant funding if it did not come into compliance with GASB (Governmental Accounting Standards Board). auditors and developing work flow charts, he stated two additional full-time employees would be needed to satisfy FAA requirements in accordance with GASB guidelines. Some accounting New Hanover County Airport Authority May 2, 2012 Page 3 duties also would be absorbed by current staff members. Mr. Morton provided brief job descriptions for the two new job positions an Accounts Receivable Clerk and a Marketing and Accounting Assistant. He also provid process and cash receipt process. federal AIP grant funding. Chairman Lennon explained the audit process and the necessity for ILM to comply with the federal guidelines for the segregation of accounting duties under GASB. government agency to outsource accounting funct third-party audit. positions would have to be full-time positions, explaining that in accordance with his responsibility as the Airport Director to approve all staff positions below himself, he thoroughly reviewed and authorized -time positions in order for ILM to come into compliance under He said the two new full-time positions were being presented as informational, and when Authority members approve the 2013 budget, funding for the two new positions would be included within that budget. Dr. Roseman questioned that since the Finance Director works directly for the Airport Authority according to the by-laws, would the two new employees come under the supervision of Mr. Morton exclusively. Mr. Rosborough stated the Finance Director reports to the Airport Director and the Airport Authority, but the two new employees would be supervised by the Finance Director. Mr. Morton legal notice for the public to review Chairman Lennon noted the variance in Salaries, Wages and Benefits from FY 2012 to FY 2013 was $207,000. Facilities: Mrs. Wilsey information Chairman Lennon approved a Change Order in the amount of $3,513.58 for the TWY A Project to replace a complete electrical manhole box (aircraft rated). H for the design and bidding of a new Rental Car Facility. She discussed and compared the costs and pros and cons of two different methods of design services Design/Bid (traditional government method) and Construction Management at Risk (new method based on private sector design-build). In response to s question, Mrs. Wilsey explained that Reynolds, Smith & Hill (RS&H) was the architect selected by Authority members back in 2007, based on its qualifications for three large ILM projects: a new Customs Facility, a new Rental Car Facility, and a 10,000 sq. ft. Business Park Building. There was a discussion among Authority members and staff about the two design methods. Staff recommended approving a contract with RS&H for the traditional government design/bid method in the amount of $377,455. Authority members were unanimous in agreement. Mrs. Wilsey discussed a Work Authorization in the amount of $299,600 approval with Talbert & Bright to design and bid the RWY 17 Extension Project, one of New Hanover County Airport Authority May 2, 2012 Page 4 AIP projects for FY 2012, which is available for discretionary funding. The extension will be 750 ft. Because the amount of the design fee for this project was so large, Mrs. Wilsey explained that the FAA required an independent fee estimate. She hired an independent fee estimator to review the proposed charts and scope for the project; the actual fee must be with within ±10% of the estimateChairman Lennon suggested voting on this item separately during the Regular Public Meeting. construction administration required to complete and close out the Airport Boulevard and Lights Project, because this project with Barnhill Construction went beyond its contract completion date. She explained that the liquidated damages withheld from Barnhill would cover the additional costs incurred by Talbert & Bright. Mrs. Wilsey updated Authority members on the Security Checkpoint Renovation Project, stating Welch Construction was the low bidder on the project with a contract in the amount of $204,584, well under the $295,000 approved last month. Mrs. Wilsey requested Authority members approve a $40,000 allowance to cover any unforeseen changes that may be encountered during the renovation. The contractor started work on April 17th, with a target completion date ofJune 8th. Mrs. Wilsey stated the project was going very well, and the TSA equipment should be installed and available for Authority members to see by the next meeting on June 6th. Mrs. Wilsey updated Authority members on current projects, including the RWY 6-24 PAPI Project, the TWY A, H, D and F Rehabilitation Project, the Kerr Avenue Fence Project, and the installation of -in boarding bridges was simply a matter of expense; they are very expensive. Mr. Rippy and Dr. Roseman commented that the current boarding bridges are not well kept and do not present a good image for passengers arriving at ILM. Secondary Water Source Project, stating this project was included in the FY 2013 federal AIP grant Improvement Projects (CIP) for FY 2012 through FY 2014. After conferring with FAA officials, Mrs. Wilsey stated there RWY 17-35 Rehabilitation Project ($6.9 million) would be funded with discretionary funding. She discussed and recommended using , and FY 2013 federal AIP grant list. Mrs. Wilsey stated that the CFPUA has assured ILM that the water would be available by March 2013. e summarized by saying the CIP would be changed, and staff would pursue 90/10 State grant funding with the NCDOT for the Secondary Water Source Project. Mrs. Wilsey discussed a movement by all North Carolina airports to obtain an exemption for Chairman Lennon suggested this as a topic for discussion Commissioners on May 17th. Government: Mr. Rosborough updated Authority members about the FAA ADO realignment proposal, stating Chairman Lennon signed a letter on March 30th New Hanover County Airport Authority May 2, 2012 Page 5 opposition to this proposal. Mr. Rosborough, along with Mr. Richard Walls, NCDOT Aviation Director, and others travelled to Washington, DC on April 27th to give a presentation to Congressional representatives of the Aviation Sub-Committee and Christa Fornarotto, FAA Associate Administrator for Airports. From this meeting Mr. Rosborough concluded that the FAA would be going ahead with its ADO realignment plan within the next few weeks. Mr. Rosborough stated the next plan of action would be to communicate with Senators Burr and/or Hagan as soon as possible to get this issue before the Senate Aviation Committee. Mr. Rosborough reported the TSA has a new ruling that children under the age of 12 and adults over the age of 75 do not have to remove their shoes when going through the Security Checkpoint. Dr. Roseman thanked Talbert & Bright for the dinner reception they hosted at the recent NCAA Conference in New Bern. There was some additional discussion among Authority members and staff about the FAA ADO realignment. Marketing and Public Relations: Mr. Morton spots. He said staff was auditioning actresses Dr. Kays suggested using local people who fly in and out of ILM to give testimonials in advertising commercials. to assist with were sent out to some more site selectors and brokers. Mr. Morton pointed out to Authority members hard, but they also give back to the community. At a recent United Way meeting, the airport was recognized and received two awards: a Leadership in Giving Award and a Campaign Achievement Award. Planning and Development: Mr. Morton new renditi. He discussed the possibility of pursuing a flex-space building with 10,000-20,000 sq. ft. of space across the street from the VA facility and various ways as to how ILM could fund the construction. There was some discussion that a hotel might Chairman Lennon commented that going forward, the Airport Authority needs to be conscientious and careful at the same time in actively pursuing real estate development on airport property. Operations Report: Using charts for illustration, Mr. Broughton reported airport statistics for the month of April, including fuel price comparisons, fuel flowage amounts, and airfare comparisons with MYR, RDU, FAY and OAJ and total passengers handled. He stated the load factor for April was 89%. He reviewed statistics for aircraft and people cleared through Customs for the month of April. Mr. Broughton passed out a snapshot of changes to the Aviation Chapter of the New Hanover County Code, stating the entire chapter needs to be updated to bring it up to date with current terminology and regulations. He commented they were primarily minor changes and proposed New Hanover County Airport Authority May 2, 2012 Page 6 ver County Commissioners on May 17th. There was a discussion between Authority members and staff in reference to specific changes to the County Code concerning fueling operations, civil penalties, etc. Directors Report: In his aviation update, Mr. Rosborough stated he was cautiously optimistic about enplanement statistics being up over 6% through April. He stated the bottom line was that airlines were increasing capacity with larger aircraft, but they were not increasing frequency. They are cutting back on smaller aircraft. He predicted ILM would see larger aircraft with 70-90 seats, but with less frequency. He said Delta had bought an oil refinery in Pennsylvania, in an attempt to reduce its fuel costs. Mr. Rosborough commented that merger talks between US Airways and American Airlines were looking good, stating this merger would be beneficial for smaller airports like ILM. He reported on his visit with US Airways out in Phoenix, AZ and meeting with Mr. Jason Reisinger. Mr. Rosborough brought a potential public relations issue to the attention of Authority members concerning the non-payment of Customs fees by a private commercial aircraft at ILM. There was a brief discussion, and Chairman Lennon concluded by saying that staff should take all appropriate action to collect the money owed to the airport. Dr. Roseman suggested looking at airports north and south of ILM to see what their policies are concerning Customs fees and to Mr. Broughton informed Authority members that FedEx offered a 727 aircraft to ILM for training purposes; the problem would be finding a place to put it. Authority members were interested in this opportunity, and Mr. Broughton indicated he would get back with them when he had more information. ADJOURNMENT There being no further business to come before the Board, Chairman Lennon adjourned the meeting at 6:30 p.m. Prepared by: Respectfully Submitted: Sandy Routh _______________________________ Robert S. Rippy, Secretary