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HomeMy WebLinkAbout2013-12-04 Minutes Final New Hanover County Airport Authority December 4, 2013 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR PUBLIC I ETING December 4,2013 CALL TO ORDER The New Hanover County Airport Authority met on Wednesday, December 4, 2013, at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Chairman Barber called the meeting to order at 5:01 p.m. Airport Authority members present were Tom Barber, Chairman; John Perritt, Vice-Chairman; Jonathan Crane, Secretary; Carter Lambeth; 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; Caitlen Buffkin, Marketing & Accounting Assistant; Rose Davis, Executive Assistant; Wanda Copley, New Hanover County Attorney; and Steve Bright and Amy McLane, Talbert& Bright, Inc. Guests present were Rick France, Chris Sikes, Gerry and Ann Tremblay, Bill Cherry, Sandy Collette, Caitlin Dineen, Ryan Evans, Desmon MacRae, Joe Stanley, Scott Wallace,John Lennon and Doug Garee. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Public Meeting on November 6, 2013. Mr. Lambeth MOVED, SECONDED by Mr. Perritt, to approve the minutes of the November 6, 2013 Regular Public Meeting as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Dr. Roseman initiated a discussion regarding the procedure for the public to speak during an Authority meeting and it was agreed to address this issue during New Business. PUBLIC CO I I NTS Mr. Joe Stanley, VFW District 5 Commander, addressed the Authority regarding the proposed USO and the local Veterans groups' support of the same. Mr. Barber thanked Mr. Stanley and stated the staff has been looking at possibilities of a USO. Mr. Barber indicated the challenge, and what staff is researching, is conflicting reports in terms of annual fees and the Authority doesn't have enough information yet to decide what to do. Mr. Barber indicated he has a document to share with the Authority as to the latest information staff has gathered. Mr. Barber stated in order to justify a USO for the Wilmington community, ILM needed to do a study that demonstrates the demand. Dr. Roseman stated he was the first to bring up a USO about 6-7 years ago and has been researching this for a long time. Dr. Roseman shared that USO's come under 2 categories and in NC they are controlled by the State and that the Authority doesn't make the final decision. Dr. Roseman talked to the USO Director in NC and said the USO wants ILM to do a survey and the USO will provide sample questions. Dr. Roseman stated he felt a USO would be adequate for active military, retired military and New Hanover County Airport Authority December 4, 2013 Page 2 especially wounded warriors. Dr. Roseman said the Authority was interested in a USO but has to do what the USO wants us to do and that is a survey first. Mr. Barber recognized guest speaker,John Lennon, former Authority member and current member at large of the NC DOT for ports and airports. Mr. Lennon addressed the Authority regarding the 71 airports in North Carolina, 9 of which have commercial service and indicated that the competition amongst the various airports is brisk but all seem to have found their own niche. Mr. Lennon spoke of Jacksonville airport indicating they have less than 20 GA aircraft based there and their business is purely commercial and their director is going through the issue of whether to extend a contract for an FBO because there isn't enough business to keep it going. The larger commercial airports don't even really focus on GA that much. Mr. Lennon stated that one thing we need to remember in Wilmington is that ILM is one of four statewide airports under the new Strategic Transportation Initiative that made the cut by 4,000 enplanements. The top four airports get their half million dollars of State funding from the Division of Aviation every year for projects, regardless. After that it becomes a very competitive process for the other airports within their Metropolitan Planning Organization (MPO). Mr. Lennon indicated in our area there is a tremendous amount of competition between Wallace, Sampson County, Southport, and Columbus County for the GA traffic. These smaller airports are dependent upon the GA traffic because without it there is no fuel flowage, no property tax base and the bulk of them will never have commercial traffic. Concord is the latest NC airport to get a commercial carrier. Mr. Lennon reported from the State aviation study that GA traffic or airplane ownership is not predicted to go up the way it was if we looked at it seven years ago. Mr. Lennon stated that ILM is lucky to have an autonomous Authority. In response to Mr. Barber's request for the history of Aircraft Rescue and Firefighting(ARFF) at ILM, Mr. Lennon shared that shortly after coming on the Authority he attended a live exercise drill as mandated every three years by the FAA. The Authority encouraged staff to hold the drills more often and focus on what may happen at ILM. Following a FAR 139 Inspection, the Authority discovered ILM had sworn law enforcement officers and maintenance staff who were cross trained for firefighting service. To pass the FAR 139 test, staff has three minutes to respond to an emergency call so staff actually sat in full turnout gear in the fire trucks waiting for the inspector to hit the button so they could respond promptly. Mr. Lennon stated the Authority looked at adding about five positions at a cost of roughly $250,000. Having that dedicated response and trained responders is what drove the Authority at the time, combined with the improved relationship with mutual aid agencies like County Fire, Sheriff's Department, Wilmington PD and Wilmington Fire. Dr. Crane shared that recently he was taking off and experienced engine trouble on take off and before they could circle and land the fire truck was ready and waiting as they were on final approach. He estimated the response occurred in less than two minutes. Mr. Lennon finished by saying that the reputation of the ILM Public Safety Officers is top notch within the other agencies in our region and encouraged staff to continue to invite those mutual New Hanover County Airport Authority December 4, 2013 Page 3 aid agencies out for drills. SPECIAL EVENTS There were no special events to discuss at this meeting. FINANCE REPORT Mr. Morton reviewed ILM's October financials, cash report and summary of accounts. Mr. Lambeth recommended the Authority approve an employee Christmas bonus to all full time employees of$900. Mr. Barber suggested the Authority may want to look at demographics of employees and newer employees receive lower amounts than those that have been employed longer. Dr. Roseman pointed out employees also make more the longer they have been employed. Dr. Roseman MOVED, SECONDED by Mr. Lambeth to approve the Finance action item discussed above. The MOTION WAS APPROVED UNANIMOUSLY. FACILITIES Action Items: Talbert &Bright Work Authorization (AIP44) - Mrs. Wilsey recommended that the Board approve a work authorization to increase the testing budget by $ 7,500. The TWY B, C,J, and G project has been delayed due to weather and requires additional testing and construction administration services. Mr. Lambeth MOVED, SECONDED by Dr. Roseman to approve the Facilities action item discussed above. The MOTION WAS APPROVED UNANIMOUSLY. Action Items: Talbert & Bright Work Authorization (FY 14/15 Projects) - Mrs. Wilsey recommended that the Board approve a work authorization in an amount not-to-exceed $80,000 for environmental testing and conceptual design for the existing rental car area and North Ramp. The authorization amount includes nearly $17,000 worth of environmental screening and geotechnical testing on and around the ramp area. Discussion followed about the environmental testing. After some discussion, Dr. Crane MOVED, SECONDED by Mr. Lambeth to approve the Facilities action item discussed above. The MOTION WAS APPROVED UNANIMOUSLY. Mrs. Wilsey updated the Authority on ILM's CIP projects turned into the Technical Coordinating Committee (TCC) and Transportation Advisory Council (TAC) to be discussed at the January meeting. ILM is in the State tier, the highest tier, and our projects should be automatically funded. Mrs. Wilsey reported to the Authority on the recent visit to the FAA in Memphis. The purpose of the visit was to finalize our Capital Improvement Program for FY14-FY20 and discuss ILM, process and priority changes. New Hanover County Airport Authority December 4, 2013 Page 4 GOVE I NT Mr. Rosborough updated the Authority on the status of the Small Community Air Service Development Grant indicating that the official letter should be received in December. Once received staff will move forward and contact airlines regarding new air service out of ILM. Mr. Rosborough shared that the TSA has recently announced that the Pre✓TM Program will be launched at ILM in December. This is a more user friendly security line for frequent flyers. Mr. Broughton indicated that approximately 50% of ILM's customers will be Pre./ 'm. The logistical details are still being worked out. Mr. Broughton said passengers may be selected automatically and it is a random process. In the near future, the public can pay $85 to sign up and guarantee that they will be Pre,/TM. Mr. Rosborough reported on the status of the Exit Lane staffing issue. Airports and ACl-NA and AAAE professional organizations have come together in joint litigation against TSA hoping to stay the process until all sides and issues could be heard. This staffing could mean an approximate $90,000 expense to ILM or it could cost$300,000 to$500,000 to purchase approved technology to monitor this requirement. In response to Dr. Roseman's question about what off-duty police officers charge, Mr. Rosborough reported those covering the County Fair charged $25 to $30/hour. Mr. Rosborough explained that State law dictates who can staff the Exit Lane and ILM staff checked with three local security companies and we would be charged $14.26/hour for 16 hours, seven days a week. Mr. Broughton reported that staff received three bids from security companies around town and decided on Securitas Security Services which was the least expensive at $83,000/year. Mr. Broughton recommended approval to contract with Securitas Security Services USA, Inc. to provide Exit Lane Security staffing at an annual rate not-to-exceed $85,000. After some discussion, Mr. Lambeth made a motion to approve this contract contingent upon whether TSA suspends the amendment, the motion was SECONDED by Dr. Crane. The MOTION WAS APPROVED UNANIMOUSLY. MARKETING AND PUBLIC RELATIONS Mr. Barber stated that Mr. Gebbie, who was to share the results of our Customer Satisfaction Survey, would not be speaking at tonight's meeting but will be rescheduled for January. Dr. Roseman updated the Authority on the Marketing committee meeting. Dr. Roseman displayed a North Carolina map with the nine commercial airports circled and shared an Allegiant advertisement that was in the Charlotte paper on Thanksgiving Day. Dr. Roseman made the point about general aviation that anyone that has an airplane can afford to spend a weekend somewhere and spend money at restaurants, etc. Dr. Roseman stated that ILM has the coastal environment to use to market ILM to GA traffic, to support the community, and bring in tourists for our restaurants and hotels. New Hanover County Airport Authority December 4, 2013 Page 5 Dr. Roseman stated that the government is really important to growth and we need to concentrate on the local military bases to make this area grow. Dr. Roseman indicated that ILM is going to attend Sun & Fun this year and encourage the FBOs to do things to entice people to stop at ILM as they are traveling up and down the coast. Dr. Roseman encouraged Authority members attending Sun & Fun to wear shirts, hats, and jackets that he ordered with ILM logos. Mrs. Buffkin reported to the Authority regarding the Relax Packs donated by Time Warner Cable and given to the military travelers before Thanksgiving. The Relax Packs included lots of snacks, pillows and items donated from New Hanover Regional Medical Center and the military personnel were very appreciative. Mrs. Buffkin stated that on Veteran's Day there was a banner in the terminal lobby thanking all Veterans for their service and that staff is working on a two-sided banner welcoming Veteran's to ILM. Signs were also put up at the VA Clinic and Mr. Sikes indicated that the Director of the clinic requested bigger signs to be permanently affixed. Dr. Crane updated the Authority that the military is still working to use ILM more for fueling. Mr. Morton reported that there will be marketing around the TSA Pre/TM rollout. PLANNING & DEVELOP I NT Mr. Morton updated the Authority that the broker is digitally marketing the hotel. Mr. Morton stated that the Business Park Phase I work has begun and should be completed by early May. OPERATIONS REPORT Using charts for illustration, Mr. Broughton reported total passengers handled, seats available and customs traffic for November. In response to Dr. Roseman's question regarding whether Norfolk's customs traffic is increasing, Mr. Broughton indicated that he would check on that for future reference. There was some discussion about over-fly exemptions and the impact on ILM traffic. Mr. Broughton updated the Authority with information provided by Joseph Pickering, our Air Service Development Consultant, with our forward looking schedule and Revenue per Available Seat Mile(RASM) tables for ILMs flights to Atlanta, Charlotte, DC, LaGuardia and Philadelphia. In response to Mr. Lambeth's question regarding what Jacksonville's load factor to DC is, Mr. Broughton indicated he would check on that. Mr. Broughton reported to the Authority on his USO research and conversations with John Falkenbury, President of the NC USO. Mr. Broughton stated the first step is to find out what the demand is by doing a survey to see how many military we have flying in and out of ILM; if they New Hanover County Airport Authority December 4, 2013 Page 6 would use the facility if constructed; and on which side of security they would prefer the facility. Mr. Broughton indicated post security is usually preferred. Mr. Broughton stated that Mr. Falkenbury would compile the list of survey questions and staff would conduct the survey by our methods, either Survey Monkey, or by using volunteers to conduct the survey and that staff needs to reach out to the community during the survey as well as airport customers. Mr. Broughton indicated the downside right now is, according to Mr. Falkenbury, the USO has no money in their budget for a USO in Wilmington and the annual cost is about $250,000. The smallest facility is Fayetteville at about 900 sq. ft. and their annual budget is $258,000. Staff would need to poll the community to see if we have support financially if we want to use the USO brand. If we don't want to use the USO brand, we can build anything and call it anything other than USO. Mr. Barber questioned information received about a USO built that didn't pay the $250,000. Mr. Broughton said he talked to Raleigh, Fayetteville and New Bern. New Bern only has an information desk/kiosk. Both Raleigh and Fayetteville told Mr. Broughton that they don't pay anything. Fayetteville indicated they tried for a couple of years to get a USO but then with military pull were able to have the USO come to them and put it in at the USOs expense. Mr. Barber commented that allegedly USOs are put in some airports where the airport is not writing a $250,000 check annually and we need to figure out what causes one versus the other. Dr. Roseman said in NC we fall under the latter. Dr. Roseman asked Mr. Falkenbury how much money the Authority would need to raise for a USO and Mr. Falkenbury told him "you don't raise the money, we do." Dr. Roseman reported that Mr. Falkenbury said the USO goes into the community and raises the money. Dr. Roseman stated, if you look at it economically, there are enough businesses in town that would support it very easily but the point being that Mr. Falkenbury told Dr. Roseman that we didn't have to raise the money. Dr. Roseman asked Mr. Falkenbury what ILM would have to provide and he was told the start up costs would probably be $250,000 which would include computers, telephones, etc. but ILM would be providing the space, the janitorial services and the electricity and the USO would raise the money if we were approved. Dr. Roseman talked about the Northwest Regional Airport in Florida and their USO. Their USO is pre-security. Dr. Roseman indicated ILM would want to cater to active military, retired military, and wounded warriors. Dr. Roseman said we could get the survey questions from Mr. Falkenbury and go to the Veterans of Foreign Wars, the American Legion, etc. and ask them to help us conduct the survey without spending any money and if the USO approves us, then we can see if they can raise the money. Dr. Roseman stated there is nothing negative about this, it's positive. Mr. Barber clarified that we are waiting for the survey questions from Mr. Falkenbury and Mr. Broughton indicated Mr. Falkenbury would be glad to come and address the Authority at any time. New Hanover County Airport Authority December 4, 2013 Page 7 Dr. Roseman said he felt like it was good PR to let the public know that we're looking into this and that ILM is committed to its retired and active military members. DIRECTOR'S REPORT Mr. Rosborough updated the Authority on the status of the American/US Airways settlement. The terms of the settlement involved giving up 50 slots (25 roundtrips) to DCA. On December 9th the merger will be official and they will be American Airlines Group, Inc. There is no word yet on how this will affect our two flights a day to DCA. Mr. Rosborough reminded the Authority that he sent his goals and objectives report to Chairman Barber for the Authority to review. Mr. Rosborough reviewed the proposed 2014 Meeting Schedule and reminded the Authority that the next meeting will be January 8, 2014. No changes were made to the schedule. Mr. Rosborough recognized Mrs. Copley's birthday. Mr. Rosborough presented Mrs. Wilsey with a framed copy of the October 2013 WILMA magazine article"Wilma's 2013 Women to Watch". UNFINISHED BUSINESS Mr. Barber addressed the Authority regarding the Request for Proposal (RFP)document indicating all comments by Mr. Lambeth and Mr. Perritt have been incorporated and was sent out for the Authority to review. Mr. Barber stated that in response to Dr. Crane's concerns about the RFP being for either an FBO or a SASO, language was inserted to better depict what the requirements would be for a bidder as an FBO as opposed to a SASO. Mr. Barber pointed out the two paragraphs inserted to clarify the concepts of FBO and SASO and copies of the language were handed out to the Authority to review. Discussion followed regarding the difference between a SASO and an FBO; the differences between the two existing FBOs, whether ILM has room for 2 "tall and focused FBOs", and whether the current Minimum Standards need to be modified. Mr. Lambeth indicated he and Mr. Perritt met and also received a lot of documentation of the history of what Mark Chambers suggested earlier and a copy of the Minimum Standards adopted about 10 years ago. Mr. Lambeth said it was enlightening to read Mr. Chambers' original report and then to see how he updated it this year. Mr. Lambeth, in response to Mr. Barber's question, summarized the Authority's intentions when the Minimum Standards were revised. Staff also clarified for the Authority the process followed in reviewing and revising the Minimum Standards which included preparation of a GA Master Plan, hiring a consultant, reviewing other airports' Minimum Standards and work sessions with the Authority and FBOs. Discussion followed about the need to apply the Minimum Standards equitably to the two existing FBOs and whether there was a way that Air Wilmington and Aero Services could work New Hanover County Airport Authority December 4,2013 Page 8 together. Mr. Cherry indicated he would be willing to sit down and talk with Mr. Tremblay and airport administration and see if something could come out of it. Mr. Barber stated the Authority is trying to get a mechanism in place to resolve this problem and he believes the RFP is a catalyst to make that happen. The Authority has a letter from Air Wilmington that we have to take seriously and we have a number of issues with Aero Services ownership as well as other issues. Mr. Tremblay said that Mr. Vojta is still the owner, the Tremblays are just the management company. Mr. Tremblay said they didn't take over the business in violation of the lease or anything like that. They are just running it for Mr. Vojta. Mr.Tremblay stated that Aero Services doesn't have new hangars, is not allowed to fuel airlines and that they are not allowed to do a lot of things. Mr. Tremblay said he thinks ILM needs to have a service for light general aviation and that light general aviation creates a whole lot more traffic count than the airlines do and the traffic count is what keeps our FAA tower here and in his opinion Aero Services is the best choice for keeping the small airplanes alive. Dr. Roseman said you have to look at it from the community standpoint and if you close Aero Services down, all that traffic, all this flying, is going to go to Wallace and Southport where hangars and gas cost less. Dr. Crane said the Authority members are all very pro general aviation and do not desire to close Aero Services. Dr. Roseman added that you must look at what the end result is to be and that if Aero Services does close down, it will be because they cannot afford to compete. Mr. Barber stated as he understands the requirements, if you say Vendor A has to do these 6 things, you also have to say the same thing to Vendor B or you are in violation of the Federal Aviation Regulations, at which point, if you want to talk about the community, we jeopardize our funds flow and we have to really think through who we represent. We're representing Wilmington and all the air service and millions of dollars of grants that could be at risk. Mr. Barber stated that while it is not his desire to close Aero Services, he is trying to solve the problem of a month-to-month lease and improve aeronautical services at LLM and the RFP allows the Airport Authority to research all options and could indeed result in a new aeronautical vendor at ILM. Discussion followed about the need to amend the Minimum Standards for today's market. Dr. Crane MOVED to approve the ' ' with the changes as discussed to allow bids for SASOs or FBOs and that the South Side FBO will not get first right of refusal on a North Side FBO should a North Side RFP be issued in the future. Mr. Perritt SECONDED with the comment that the RFP does lead to some challenges but with transparency and clarification needs, we are boxed in right now so this is one way to investigate in an open market if someone can meet the Minimum Standards. Mr. Perritt stated for the record that when Mr. Cherry created his "Class A"FBO, the airport came up with substantial funds out-of-pocket to enhance that leasehold and that is a real partnership that sometimes is not identified. Mr. Perritt stated that the Authority has a catch 22 because Aero Services is being held to "A" standards but they really don't have an "A" standard New Hanover County Airport Authority December 4, 2013 Page 9 leasehold available. Aero Services has a fractured leasehold with some logistical and facility issues which makes it tough but that is what we have to deal with today. There being no further discussion, Mr. Barber called for vote on the Motion. The VOTE was taken with Dr. Crane, Mr. Perritt and Mr. Barber IN FAVOR and Mr. Lambeth and Dr. Roseman OPPOSED. NEW BUSINESS Mr. Barber addressed the public comment process that was talked about earlier in the meeting. Dr. Roseman noted questions about the bylaws and asked the chairman to appoint Mr. Perritt and Dr. Roseman to come up with some recommendations and it was agreed. Dr. Roseman MOVED to amend Article VI of the bylaws to read that the New Hanover County Airport Authority will be consistent with the policy of the New Hanover County Commissioners regarding the public addressing the Authority. Mr. Lambeth SECONDED. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Barber reminded everyone about the Christmas party on December II th at Cape Fear Community College's Union Station. CLOSED SESSION Chairman Barber called the Authority into CLOSED SESSION to consider personnel matters pursuant to G.S. 143-318.11(a)(6). Dr. Roseman MOVED, SECONDED by Mr. Perritt to go into closed session. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Before going into closed session, Dr. Roseman asked the public if anyone wanted to address the Authority. Caitlen Dineen, the new transportation reporter for the Star-News introduced herself. The public and staff were dismissed from the meeting leaving Mr. Barber, Mr. Perritt, Dr. Crane, Mr. Lambeth, Dr. Roseman and Mrs. Copley in the closed session. Mr. Lambeth MOVED,SECONDED by Dr. Crane to return to open session. The Authority concluded consideration of personnel matters and no action was taken. MVO ' NT There being no further business to come before the Board, Chairman Barber adjourned the meeting at 7:40 p.m. Prepared by: Respectfully Submitted: Rose M. Davis Dr. Jonathan S. Crane, Secretary Date of Approval: January 8. 2014