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HomeMy WebLinkAbout 2014-04-02 Minutes New Hanover County Airport Authority April 2, 2014 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR PUBLIC MEETING April 2, 2014 CALL TO ORDER The New Hanover County Airport Authority met on Wednesday, April 2, 2014, at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Chairman Barber called the meeting to order at 5:02 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; Sandra Routh, Acting Executive Assistant; Wanda Copley, New Hanover County Attorney; and Amy McLane and Steve Bright, Talbert & Bright, Inc. Additional attendees included New Hanover County Commissioner Beth Dawson; airport staff personnel: Dani Neathery, Comptroller; Marvin Foster, Facilities Manager; Gary Taylor, Operations Manager; and Kenny Smith, Operations Specialist; and airport volunteer, Patricia Holmes. Also, approximately 34 guests from the general aviation community attended the meeting. Chairman Barber opened the meeting by thanking all the guests in attendance for coming and for their interest with regard to the FBO RFP. He indicated that Authority members were committed to doing what was right for the community, the airport and general aviation. He continued by going over the history and background for the current FBO RFP process. He then explained the sequence of the meeting in progress. He stated that approximately 13 people had requested to speak during the public comments portion, and if anyone wanted to speak and had not signed up, to please do so. There was some discussion among Authority members on how to proceed with the public comments, and it was the general consensus of all that the public comments should precede the normal conduct of business, and that all of those wishing to speak be given their ample 3 minutes. Chairman Barber introduced New Hanover County Commissioner Beth Dawson, who expressed . She presented a New Hanover County flag to Mr. Rosborough. e Quarter, Ms. Patricia Holmes, who has been with ILM as a volunteer since 2003. Ms. Holmes expressed her appreciation for this nice, small airport PUBLIC COMMENTS Chairman Barber proceeded to call on those guests who had requested to speak during the of general aviation at ILM and their concerns with the FBO RFP: New Hanover County Airport Authority April 2, 2014 Page 2 1. Chris Sikes 2. Ann Tremblay 3. Rick Paxton 4. Scott Johnston 5. Robert Henihan 6. Bruce Jackson 7. Eddie Hartman 8. Desmond MacRae 9. Chris Stephens 10. Tom Tucker 11. Gerry Tremblay 12. Jerry Harrison 13. Zach Cahill 14. Dennis Pittman Chairman Barber asked if there were any remaining guests who wished to speak, and there were none. Speaking on behalf of Authority members and staff, Chairman Barber stated their goal Dr. Crane clarified and expounded upon some of the comments made by Mr. Chris Sikes. He related his training and background as a pilot, as well as being the owner of two airplanesone at each FBO, and his support of aviation training at Cape Fear Community College and general aviation at ILM. He went on to explain why he personally felt the FBO RFP process was the only way to promote competition and to be completely transparent and ethical in the resolution of long-standing FBO issues involving Aero Service. One of the guests had questions about the two proposals submitted as a result of the FBO RFP process, and wanted to know particulars about the other company (not Aero Service). Chairman they want to be an FBO on the airfield, have a Part 145 repair station, do pilot training, meet ILM minimum standards and invest capital into the facility. Mr. Lambeth commented that he objected to the five-year lease plan in the FBO RFP currently before the Authority, suggesting that a 30-year lease plan should have been proposed similar to the one in the 2005 FBO RFP that was awarded to Mr. Bill Cherry/Air Wilmington. He continued by saying that he was a commercial pilot with a current instrument rating with over 5,000 hours, flying at ILM since 1971, and he keeps his plane at Air Park I on the east side of the airport. He expressed his concerns about Brixtel, and commented that Mr. Tremblay/Aero Service was able to offer some intangible benefits that Brixtel was unable to provide. He went on to add that he was opposed to the FBO RFP, ted that Authority members had a duty and responsibility to all of the pilots and airplane owners in operate an FBO at ILM. He suggested that Authority members should reject the two proposals New Hanover County Airport Authority April 2, 2014 Page 3 After an emotional discussion, Chairman Barber commented that Authority members were adamant about doing the right thing to promote general aviation at ILM with the FBO RFP process. Responding to a question from one of the guests, he stated there was no performance Mr. Perritt related he identified with each of the speakers and the pilot guests, noting that Authority members were also pilots and airplane owners. He stated for the first time in many for 2013-2014ate includes the taxpayers, the community, economic growth, the corporate pilots, the airlines, the military and general aviation. He feels that all Authority members have a passion to keep and promote general aviation. He expressed his enthusiasm for and complimented past accomplishments of Aero Service and Air Wilmington. He stated there was a lot of emotion in this challenge before the Authority; but that the FBO RFP was the most ethical and transparent method to put this challenge out for the public. It was a very formal legal process, and Authority members would be voting their conscience later during this meeting. Regardless of the outcome, Mr. Perritt stated Authority members would be doing what they were mandated to do by the County Commissioners in the best interests of the airport, the community, and the taxpayers. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Public Meeting on March 5, 2014. Dr. Crane MOVED, SECONDED by Mr. Perritt, to approve the minutes of the March 5, 2014 Regular Public Meeting as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Dr. Roseman recommended taking a brief recess to allow any guests who so desired, to leave before continuing with the normal progression of the meeting agenda. Chairman Barber called for a recess at 6:05 p.m. The Airport Authority meeting resumed at 6:10 p.m. SPECIAL EVENTS Mr. Broughton reminded Authority members about the Azalea Festival, April 9-13. He indicated the Cole Brothers Circus would be at ILM April 10-13. Mr. Broughton recognized ILM employees present at the meeting and acknowledged that Mr. Gary Taylor, Mr. Marvin Foster and Mr. Kenny Smith were FAA Part 139 Airport Certification Inspection, 26-27 March. He announced that this was the th 10 consecutive year that ILM received no discrepancies from FAA inspectors. One of the FAA inspectors remarked that ILM was the best airport that he had seen in his four years of inspection duties. Mr. Broughton stated I FINANCE REPORT Mr. Morton discussed and recommended Authority members approve the following action items: Rental Car Facility Leases: Subsequent to the construction of the new rental car facility, we need to enter into new leases with the rental car companies, which will be similar to the previous New Hanover County Airport Authority April 2, 2014 Page 4 leases executed in June 2011. The rental car facility leases will run in tandem with the Concession Agreements (every five years), and the length of the new leases is for the remaining term of those agreements (approximately 27 months). Insurance cost associated with the facility is estimated around $19,000 annually and will be funded by the Contract Facility Charge (CFC). Annual lease rates are as follows: Hertz -- $23,114; Enterprise -- $23,114; and Thrifty -- $17,928. Dr. Crane MOVED, SECONDED by Mr. Lambeth, to approve the rental car facility leases discussed above. The MOTION WAS APPROVED UNANIMOUSLY. Contra This contract is to seal all cracks and apply coating to six parking lots Maintenance, was the lowest of three bids. The parking lots were seal-coated approximately 5-6 years ago, and this is the time expectancy to rotate this maintenance. There was some discussion concerning seal-coating products used by the different bidders. Parking Lot Maintenance in the amount of $52,062 to seal-coat six parking lots at ILM. The MOTION WAS APPROVED UNANIMOUSLY. members and asked them to review it carefully over the next four weeks, and to contact him with any questions they may have. He further discussed the budget in more detail using a slideshow presentation. FACILITIES Mr. Prease discussed and recommended Authority members approve the following action items: Talbert & Bright Work Amendment (AIP 44): This is a work authorization amendment for inspections and quality assurance testing for the TWY A LED project. The amendment is based on work for 90 days and 30 nights. The cost shall not exceed $85,000, and because the inspections are required by the grant, it is eligible for reimbursement. months, Mr. Prease described a 90-day runway closure in conjunction with the RWY 17-35 Rehab project and the TWY A LED project. He went on to explain that the rehabilitation of runway pavement cannot be done during winter months due to weather temperatures (must be 40° and rising); so therefore, the paving is scheduled in early spring in order to complete the project before the fall and winter months. Mr. Lambeth MOVED, SECONDED by Dr. Roseman, to approve the work authorization amendment at a cost not to exceed $85,000. The MOTION WAS APPROVED UNANIMOUSLY. NCDOT Grants (AIP 47 & 48): This is for two state AIP grants local match from 10% to 5%. AIP 47 RWY 17-35 Rehab state match is $304,088 New Hanover County Airport Authority April 2, 2014 Page 5 AIP 48 RWY 17 PAPI & REIL state match is $5,700 Mr. Lambeth MOVED, SECONDED by Dr. Roseman, to approve the two matching state grants for AIP 47 ($304,088) and AIP 48 ($5,700). The MOTION WAS APPROVED UNANIMOUSLY. AAI Building Renovation: Mr. Prease indicated there were a lot of repairs that needed to be done on the AAI building, and six companies were invited to submit bids for the project, but only four responded. He recommended approval in an amount not to exceed $154,000 for ated that if the tenant was interested , staff would negotiate with the low bidder, Buzkirk Consulting PLLC. Mr. Morton added that this only applied to interior repairs, and that the roof repair work (approximately $125,000) was mandatory to protect our asset. Mr. Lambeth MOVED, SECONDED by Dr. Roseman, to approve repairs to the AAI building in an amount not to exceed $154,000. The MOTION WAS APPROVED UNANIMOUSLY. Terminal WiFi Equipment Upgrade: is more than five years old, and customers have complained that it is not reliable. Staff has spoken to three different vendors and has a proposal to replace the old hardware. He Dr. Roseman MOVED, SECONDED by Mr. Lambeth, to approve upgrading the WiFi . The MOTION WAS APPROVED UNANIMOUSLY. the agenda and asked if there were any questions. th Capacity Study (PFC) at the May 7 meeting would take approximately one hour. Mr. Prease previous comment during his budget presentation about what ILM pays for electricity annually, that staff is currently working with a local group to replace all the interior fluorescent lighting in the terminal with LED lighting. He said this could save about $127,000 per year. With a projected cost of approximately $165,000, that would be a ROI of 1.3 years. GOVERNMENT Mrs. Wilsey stated she attended the AAAE Spring Legislative Conference, 26-27 March, during the FAA Part 139 inspection, and invited Auth- Airport Priorities for 2014. She commented this was the first year these two organizations collaborated and went to legislators with identical priorities. Also a first, North Carolina airport directors met with 7 of 14 NC elected officials plus many of their staffers at a breakfast meeting, presenting a unified front on those issues important to North Carolina airports. One of the issues mentioned was the TSA cost shifting for the LEO reimbursement; they are shifting the costs, but not reducing the responsibilities. The PFC process was also discussed insofar as making it more New Hanover County Airport Authority April 2, 2014 Page 6 streamlined, in order that the money can actually be used by the airports, since this is the only way smaller airports can pay for capital improvements. Mrs. Wilsey reported that the City of Wilmington Planning Board was meeting at the same time as this Authority meeting, where a text amendment to request the ability to install search lights within city limits was being reviewed. Staff submitted written justification to deny this text increase was a cost of living adjustment. Mrs. Wilsey indicated any amount higher than that would probably not be passed in Washington, DC. Mr. Rosborough commented the airlines would have to approve any PFC increase, and would be opposed for various reasons including what would be perceived as an increase in ticket cost. MARKETING AND PUBLIC RELATIONS th Dr. Roseman discussed the March 26 Marketing Committee meeting, the minutes of which are included with the Airport Authority board meeting agenda. With four travel agencies in attendance, emphasis was on developing travel packages for both inbound and outbound of ILM. He indicated committee members were looking at the idea of listing these travel agencies on He stated he was amazed at how travel agencies, real estate developers, media, etc. have come together to promote ILM. Mr. Morton commented that the AAA travel agency has offered additional travel packages for shows, encouraging travelers to use ILM. In respons Dr. Roseman invited any suggestions from Authority members and welcomed them to attend rd Marketing Committee meetings, the next one being on April 23 at 5:00 p.m. Mr. Morton commented that the AAA travel agency will assist in marketing ILM to its regional agency managers for inbound travelers. Mr. Lambeth and Mrs. Caitlen Buffkin, who will be working with NCDOT to promote North Carolina and Wilmington. Dr. Roseman commented that ILM would be giving away a door prize and hoped to develop a data base from the entries collected. PLANNING & DEVELOPMENT Mr. Morton discussed and recommended Authority members approve the following action items: Land Parcel Acquisition: Mr. Morton related that a realtor had approached him about purchasing a small .45 acre land parcel in the vicinity of Acorn Branch Road. There are no structures on the property. The asking price is $17,500, and it has been on the market for over 200 days. No appraisal has been done, but comps were around $18,000 an acre. Mr. Morton New Hanover County Airport Authority April 2, 2014 Page 7 indicated the actual out-of-pocket price range for ILM would be $9,000 - $12,000. In response was conducted, since payment would be out-of-pocket for ILM, but we should check for any potential environmental issues. Mr. Lambeth MOVED, SECONDED by Dr. Roseman, to purchase the .45 acre land parcel for an amount not to exceed $12,000. There was a brief discussion initiated by Mr. Perritt Authority members and staff was that land should be acquired when available with a willing seller at a reasonable price, to avoid potential future problems with strategic land acquisitions. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Morton related there is a potential -space building. He recommended Authority members approve the site design and permitting for a 10,000 square foot flex-space building ing, in an amount not to exceed $30,000. Mr. Perritt MOVED, SECONDED by Mr. Lambeth to approve the site design and permittingfor a 10,000 square foot flex-space building by Paramounte Engineering in an amount not to exceed $30,000. The MOTION WAS APPROVED UNANIMOUSLY. OPERATIONS REPORT Using charts for illustration, Mr. Broughton reported total passengers handled, seats available and customs traffic for March 2014. He commented these numbers are down due to a combination of factors, the weather, the downsizing of US Airways aircraft, the loss of an ATL flight, and fewer LGA flights. seasonal reduction. meeting was positive; however, they will not be adding Chicago service at this time. Chairman Barber complimented Mrs. Wilsey for the wonderful job she did during the meeting with United. the major airline, for example United, would set the schedule for its express carrier (United Express). There was a brief discussion between Dr. Roseman and staff members concerning the shrinking number major airlines, the migration away from smaller 50-seat RJs and the transition to larger aircraft. Mrs commented that ILM has an outstanding team of aviation professionals, from top to bottom. Even though several staff members have been out during the past four to five months, ILM has New Hanover County Airport Authority April 2, 2014 Page 8 been able to continue to operate safely and even excel Part 139 inspection being a prime example. Mrs. Wilsey remindCounty Commissioners was scheduled on April 21, and the slideshow presentation would be Mrs. Wilsey reminded Authority members that Community air service grant was due on April 15, and notice had been given to two different airlines that the grant was available. Chairman Barber interjected that Mr. Joseph Picke consultant, also attended the recent meeting with United, and he was very well-prepared and effective. air service team. Mrs. Wilsey added that she and Mr. Broughton were registered to attend Jumpstart in Edmonton, Canada, in June, and this would be another opportunity to Air Service Development Grant to the airlines. Mrs. Wilsey reviewed the calendars for April and May, mentioning specifically the NCAA Conference, AAAE Southeast Conference and the Annual AAAE Conference. s excellent organizational depth and the successful FAA Part 139 inspection. He informed Authority members about a recent e-mail received from a customer praising Public Safety Officer Jimmy Sublett for his hands- professional customer service we strive to perform every day. Chairman Barber read the e-mail aloud and expressed his appreciation for a great job. Mrs. Wilsey added that staff also received a letter from Mr. Al Hight, Director of the New Hanover County Arboretum, congratulating our landscapers . UNFINISHED BUSINESS Chairman Barber suggested Authority members go into a Closed Session in accordance with NCGS 143-318.11(3) to consult with the County Attorney and to preserve attorney-client privilege with the Airport Authority as it pertains to potential litigation and other legal matters. Mr. Perritt MOVED, SECONDED by Dr. Crane for Authority members to go into CLOSED SESSION in accordance with NCGS 143-318.11(3) to consult with the County Attorney and to preserve attorney-client privilege with the Airport Authority as it pertains to potential litigation and other legal matters. The MOTION WAS APPROVED UNANIMOUSLY. The Authority went into CLOSED SESSION at 7:18 p.m. Mr. Rosborough, Mrs. Wilsey, Mr. Morton, Mr. Broughton, Mr. Prease, Mrs. Routh, Mr. Bright, Mrs. McLane and all guests departed the conference room. Chairman Barber, Mr. Perritt, Dr. Crane, Mr. Lambeth, Dr. Roseman and Mrs. Copley remained in the conference room. New Hanover County Airport Authority April 2, 2014 Page 9 Mr. Lambeth MOVED, SECONDED by Dr. Roseman for Authority members to return to OPEN SESSION. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Rosborough, Mrs. Wilsey, Mr. Morton, Mr. Broughton, Mr. Prease, Mrs. Routh, Mr. Bright, Mrs. McLane and all remaining guests reentered the conference room. The Authority returned to OPEN SESSION at 7:51 p.m., and Chairman Barber reported that NO ACTION WAS TAKEN during the CLOSED SESSION. Dr. Roseman MOVED, SECONDED by Mr. Lambeth to reject both of the proposals submitted in response to FBO RFP issued several months ago. Mr. Perritt initiated a discussion and reiterated to all constituents that the RFP was a public document, and the players that responded did so in good faith. He stated this issue was a tough situation, but he could not support this motion. Chairman Barber called for a vote on the Motion. The VOTE was taken with Dr. Roseman and Mr. Lambeth IN FAVOR of the Motion, and with Chairman Barber, Mr. Perritt and Dr. Crane OPPOSED. The MOTION DID NOT CARRY. Mr. Perritt MOVED, SECONDED by Dr. Crane to consider the FBO proposal submitted by Brixtel Group as the most appropriate response to the RFP issued by ILM several months ago and as a beginning for negotiations for an FBO replacement. Chairman Barber opened the floor for discussion. Mr. Lambeth stated Brixtel did not meet any of the requirements of the FBO RFP they proposed no amount of money to pay for rent; they talked about having a flight school, BO; they only want to establish a SASO at ILM and sell pilot goods; and they even proposed to buy their fuel from Air Wilmington. Chairman Barber stated that in discussions with the Brixtel Group, they indicated their plan was to create a fuel farm and not necessarily to use the one currently in operation,as it is antiquated. Dr. Roseman stated the Brixtel Group proposed to open a gift shop off siteof ILM. Chairman Barber said that was not what they related in discussions. Dr. Roseman voiced his objecMr. Perritt commented that although the proposal submitted by the Brixtel Group was not exactly what was requested in the RFP, it was by far closer to what was requested in order to meet parity with the existing FBO situation and within the minimum standards pocket and does allow for contracting, lease backs, etc. He indicated the proposal submitted by the Brixtel Group was a beginning point for negotiations; however, the proposal submitted by the Tremblays (Aero Service) was totally different from what was requested in the RFP and does not fit with RFP back in 2005, he was offered an opportunity for a considerably longer lease that was not an option in the current RFP. He stated the current RFP was unacceptable for any viable business development. Mr. Perritt concurred that the current RFP was based upon a less than perfect scenario, because in some respects there is a potentially inferior leasehold, half of which is being reserved by the airport for future improvements and growth as part of its long-term plan. Dr. Roseman commented that if the Authority passes this Motion, it would effectively bankrupt a business that has been operating on the airport for many years and alienate a community. Chairman Barber called for a vote on the Motion. The VOTE was taken with Chairman Barber, Mr. Perritt and Dr. Crane IN FAVOR of the Motion, and with Mr. Lambeth and Dr. Roseman New Hanover County Airport Authority April 2, 2014 Page 10 OPPOSED. The MOTION WAS APPROVED. Chairman Barber instructed staff to enter into negotiations with the Brixtel Group to developand execute s for an FBO on the airfield and also to work with the existing tenant/FBO operator to effect a smooth transition for general aviation service. NEW BUSINESS Chairman Barber discussed the recruitment process initiated several months ago to replace Mr. Rosb 2014. The deadline for interested applicants to submit their résumés was March 31, 2014. He stated 42 résumés were received, review, with the names and personal information redacted to be as fair and open as possible. He added this was an equitable way for each Authority member to rank their top four résumés, submit those ranking résumés to Mrs. Copley who will tabulate them, and then go into Closed Session next month to decide the next step with the top candidates. Chairman Barber opened the floor for suggestions. Mr. Lambeth stated it was unnecessary to redact names/personal information from the résumés it has never been done before. Dr. Roseman stated that during the recruitment process when Mr. Rosborough was hired, all of the submitted résumés were treated very confidentially; they were reviewed by each Authority member; interviews were conducted and a selection was made. There was a discussion among Authority members as to whether or not to redact the names/personal information from all the résumés. Mr. Lambeth MOVED, SECONDED by Dr. Roseman for Authority members to review and rate all of the submitted résumés for the Airport Director position without redaction of names/personal information. Chairman Barber opened the floor for discussion. Mr. Perritt stated that if the Motion does not pass, he would counter that if redaction was an issue, the investigation of the 42 résumés be done in Closed Session at the same time with all Authority members present. Dr. Roseman commented that it was his understanding originally that all , and Authority members would be given the opportunity to go to her office to review and rate all of the résumés. Dr. Roseman requested additional wording to the Motion to include that Authority members review and rate the non- redacted résumés . There was a brief discussion about how to handle the administration of the résumés, whereupon Chairman Barber requested Mr. Lambeth restate his Motion Mr. Lambeth MOVED, SECONDED by Dr. Roseman for Authority members to review and rate all of the submitted résumés for the Airport Director position without redaction of . The VOTE was taken with Mr. Lambeth, Dr. Roseman, Mr. Perritt and Dr. Crane [did not voice his vote aloud]IN FAVOR of the Motion, and with Chairman Barber OPPOSED. The MOTION WAS APPROVED. ADJOURNMENT There being no further business to come before the Board, Mr. Lambeth MOVED, SECONDED by Mr. Perritt to adjourn. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. New Hanover County Airport Authority April 2, 2014 Page 11 Chairman Barber adjourned the meeting at 8:07 p.m. Prepared by: Respectfully Submitted: Sandra S. Routh _______________________________ Dr. Jonathan S. Crane, Secretary Date of Approval: May 7, 2014