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HomeMy WebLinkAbout2012-05-17 Joint Meeting with County Comm New Hanover County Board of Commissioners and New Hanover County Airport Authority Minutes May 17, 2012 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY AND NEW HANOVER COUNTY BOARD OF COMMISSIONERS MINUTES May 17, 2012 CALL TO ORDER The New Hanover County Airport Authority met in joint session with the New Hanover County Board of Commissioners on Thursday, May 17, 2012, in the Executive Conference Room at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Authority members present were John D. Lennon, Chairman; Charles R. Kays, Vice-Chairman; Thomas C. Barber II and I. A. (Al) Roseman. Robert S. Rippy, Secretary, was absent. Also present were Jon Rosborough, Airport Director; Julie Wilsey, Deputy Airport Director; James Morton, Finance Director; Gary Broughton, Operations Director; Whitney Prease, Facilities Director; and Sandra Routh, Executive Assistant. County Commissioners present were Ted Davis, Jr, Chairman; Jonathan Barfield, Jr., Vice- Chairman; and Richard G. Catlin. Brian Berger and Jason Thompson were absent. Also present were Sheila Schult, Clerk to the Board; Wanda M. Copley, County Attorney; Bruce T. Shell, County Manager; Chris Coudriet, Assistant County Manager; Avril Pinder, Assistant County Manager; Charles Smith, Community Relations Coordinator; and Eric Peterson, Media Production Specialist. Steve Bright, Talbert & Bright, Inc Chairman Lennon and Chairman Davis called their respective boards to order at 7:57 a.m. WELCOME Chairman Lennon welcomed the County Commissioners and county staff members to this joint meeting, and then introduced the Airport Authority members who were present. Chairman Davis proceeded to introduce the County Commissioners who were present and county staff members. Chairman Lennon then turned the meeting over to Jon Rosborough, Airport Director, to update the Board of Commissioners. Mr. Rosborough thanked everyone for coming and in the aviation industry had been going through difficult times historically since deregulation in 1978, having lost over $64 billion. However, with restructuring and controlling costs, the airlines have gone through many trials and tribulations, including having to deal with the economic impact of elevated fuel costs. He stated the purpose of this meeting was to update the Board of Commissioners about the impact of all of this on ILM. New Hanover County Board of Commissioners and New Hanover County Airport Authority Minutes May 17, 2012 Page 2 Mr. Rosborough then turned the floor over to Mr. Broughton to begin his presentation. OPERATIONS Mr. Broughton began updating the Board of Commissioners by reviewing 2011 statistics, stating 805,511 passengers were 11.5% over the previous year. US Airways added First Class service and larger aircraft. While ILM has the same number of flights, the seat capacity went up 12%. International traffic rose 11.5% to 45,640 passengers. Mr. Broughton stated that a 3% increase in December 2011 started an upward trend which has continued to date, resulting in a 5.9% increase in passenger enplanements as of the end of April 2012. Mr. Broughton reported that fuel costs continue to be a challenge to the aviation industry, s general aviation partners (FBOs). Their traffic went down 1.4% during 2011. International traffic (US Customs) also experienced a 3% decrease. However, on a positive note, he reported interest in corporate hangars at ILM was increasing. As part of ILM Operations, Mr. Broughton updated the Board of Commissioners on security and regulations at ILM, stating aviation was one of the most highly regulated industries. As examples, he cited FAR Part 139 (Airport Certification), 49 CFR Part 1542 (Airport Security), and DENR/Environmental. In an effort to eliminate initiated Risk Based Security (RBS), which ILM will begin to experience with the installation of AIT (Advanced Imaging Technology) or full body scanners on June 1, 2012. After a period of adjustment, Mr. Broughton stated security screening at ILM will go faster for passengers. Contrary to earlier more controversial technology, the new technology being installed at ILM will involve generic stick figures. Also, as a part of RBS, he stated that on May 23, 2012, children under 12 and adults over 75 will not have to remove their shoes. Mr. Broughton stated future discussions between the TSA and the airlines will take place regarding Pre-Check for frequent travelers. Mr. Broughton reported US Airways and Delta at ILM are scored by their headquarters as far as on-time performance, fleet launch, and turnaround time. Both airlines recently scored 5.0 (top score). Commissioner Catlin brought this idea to life, and it was being headed up by Mr. Chris Coudriet. After the application goes to the FTZ board in late spring/early summer 2012, it will take approximately nine months for approval. Mr. Broughton discussed some minor changes that are needed to update the Aviation Chapter (Chapter 8) of the New Hanover County Code, stating airport staff would get back with the Board of Commissioners at a later date to determine how to proceed with the approval process. New Hanover County Board of Commissioners and New Hanover County Airport Authority Minutes May 17, 2012 Page 3 FACILITIES Mrs. Wilsey updated the Board of Commissioners regarding current airport improvements, including: a new passenger loading bridge on Gate 7; a renovation to expand the security checkpoint area to accommodate the new AIT machines; the addition of a meet and greet area; the expansion of food service/restaurant after the security checkpoint; the addition of a 318-space credit card parking lot; and the installation of charging stations for customers to charge their electronic devices. She discussed FAA airfield projects either recently completed or currently in progress, including: taxiway paving projects; LED guidance signs and taxiway lights; and airfield drainage rehabilitation. Mrs. Wilsey stated these airport improvement projects represented $11.5 million worth of construction, with over $2 million funded by ILM and the remainder funded by the FAA. a 750 ft. extension on Runway 17-35; installation of the newest technology in precision -35 in 2014. She stated these future projects represented approximately $11.8 million in funding from the FAA over the next two years. Mrs. Wilsey discussed efforts of the NCAA (North Carolina Airports Association) and North Carolina airports to change DENR permitting for storm water treatment on airfields. She stated the ultimate goal would be to obtain a balance between flight safety and the environment. Obtaining a full exemption for airside development would free-up funding for more vitalairport improvements. As a result of an ILM water system study conducted in 2008, the necessity for a secondary water source was indicated. The need was identified during the transition to the Cape Fear Public Utility Authority. Mrs. Wilsey described this ongoing issue as a public-private partnership known as the Kerr Avenue Greater Loop, which should be completed by March 2013. She stated NCDOT-Division of Aviation funding has been committed for ILM to connect to the Kerr Avenue Greater Loop for its secondary water source. FINANCE Mr. Morton presented an overview of FY 2012 budget, which included an Operating Budget of $6.5 million and a Capital Budget of $21.3 million. He explain Budget was an Enterprise Fund, similar to private business, which provides goods and services to the general public through user fees aCapital Budget was sourced with federal AIP (Airport Improvement Projects) grants, NCDOT-Aviation grants, Passenger Facility Charge (PFC) funds, Contract Facility Charge (CFC) funds, and ILM funding. 9,294 (1983- 1997) and $69,832,268 (1998-2011). He stated ILM will receive another $8 million during FY 2012, and $11.8 million in federal AIP funding is projected for the next two years. He stated this its airport! New Hanover County Board of Commissioners and New Hanover County Airport Authority Minutes May 17, 2012 Page 4 to keep airport fees low as an incentive to retain its current air service and attract additional air service. He stated one of the ways ILM is working to replace airport fees is through developing alternative revenue streams. Mr. Morton reviewed ts to invest in its Business Park to make it shovel-ready for future business development. As an example, he reviewed the economic impact of the VA Outpatient Medical Facility currently under construction: $30.7 million for the initial year, and thereafter $18.3 million annually. opportunities for future business development. AIR SERVICE DEVELOPMENT Mr. Rosborough commented about how he and Mr. Rippy initially discussed the branding of ILM, and how ILM is now widely known and considered to be the gateway to Southeastern North Carolina. In this era of changing market conditions, Mr. Rosborough stated that while other airports have lost service, ILM has maintained and improved upon its air service. Although American Airlines had to discontinue its Chicago service at ILM due to its bankruptcy reorganization, the service did very well, and Mr. Rosborough said he hoped American Airlines would come back to ILM after restructuring. With over 70% of its passenger traffic representing business travelers, Mr. s economic development. He discussed changes in the aviation industry brought about by higher fuel prices, including the phasing out of 50-seat regional jets for larger aircraft with fewer flights and the consolidation of carriers. With a chart displaying a comparison of s passenger statistics for the past ten years, Mr. Rosborough pointed out that ILM has been able to maintain 800,000± passengers per year for the past five years during tough economic times. to having non-stop service to many of its most popular destinations, ILM has non-stop service to Mr. Rosborough stated airport staff meets with a Corporate Focus Group a couple of times each year to discus service. Mr. Rosborough commented on with an Output Impact of $641,463,200; an Employment Impact of 3,483 jobs; a Payroll Impact of $184,069,900; and a Property Tax Impact of $653,200. In conclusion, Mr. Rosborough discussed several airport issues on the horizon, including: airline mergers, fuel costs, TSA improvements, a terminal capacity study, the FTZ, capital improvement projects, limited airline growth, and the fact that Charlotte is one of the fastest growing hubs in the country. New Hanover County Board of Commissioners and New Hanover County Airport Authority Minutes May 17, 2012 Page 5 receives a monthly report via charts and graphs on fuel cost comparisons of comparison of fuel prices from around the region, and airfare comparisons for popular destinations. He also commented that the $207,000 investment for the sewer lift station upgrade guarantees capacity for the r Chairman Lennon then opened the floor for any questions. 25-year Storm Storage requirement and low impact development techniques. Mr current date. He stated the progress was impressive. He commended the airport staff and, in particular, Mr. Morton, who fought to get the VA Clinic at the airport. Commissioner Catlin emphasized the importance of ILM for the local economy, and he pledged the support of the Board of Commissioners. Vice-Chairman Barfield echoed the previous comments, and praised ILM and the progress ithas made throughout the years. Chairman Davis emphasized the importance of working together and maintaining a good relationship. Chairman Lennon recognized Mr. Shell on his upcoming retirement and expressed appreciation on behalf of the Airport Authority for his assistance throughout the years. He reiterated previous comments by the Board of Commissioners about working together and maintaining a good relationship, adding that what he enjoyed most about being a member of the Airport Authority was the lack of politics and the focus on economic development. Mr. Rosborough recognized Mr. Bright, Talbert& Bright, Inc. and Vice-Chairman Barfield commended ILM staff members and the Airport Authority for their vision in planning for the future of the airport. ADJOURNMENT There being no further business to come before the joint Board, Chairman Lennon and Chairman Davis adjourned the joint meeting at 8:54 a.m. New Hanover County Board of Commissioners and New Hanover County Airport Authority Minutes May 17, 2012 Page 6 Prepared by: Respectfully Submitted Sandra Routh _______________________________ Robert S. Rippy, Secretary