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2003-06-02 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 JOINT MEETING WITH THE AIRPORT AUTHORITY, JUNE 2, 2003PAGE 624 ASSEMBLY The New Hanover County Board of Commissioners held a joint meeting with the New Hanover County Airport Authority on Monday, June 2, 2003, at 8:00 a.m. in the Conference Room of the Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Members present were: Chairman Ted Davis, Jr.; Vice-Chairman Robert G. Greer; Commissioner Julia Boseman; Commissioner William A. Caster; Commissioner Nancy H. Pritchett; and Clerk to the Board, Lucie F. Harrell. County Attorney Copley arrived late. Authority Members present were: Parks L. Griffin, Chairman; E. L. Mathews, Jr.; John M. Coble; and Airport Director, Jon Rosborough. Chairman Davis and Chairman Parks Griffin called their respective boards to order. Chairman Griffin reported on number of safety and security changes that have occurred at the Airport and complimented Airport Director Jon Rosborough and Staff for stepping up to the plate and meeting these challenges in an excellent manner. He turned the meeting over to Mr. Rosborough to begin the presentation on the current activities at the Airport. Director Rosborough began the presentation by introducing the following members of the Staff who assist him in the daily operation of the Airport: Julia A. Wilsey, Deputy Airport Director and Director of Engineering; James Morton, Director of Finance; Hayden Braye, Manager of Maintenance; Harold H. Miller, Manager of Public Safety; and Janie James, Executive Assistant. Director Rosborough reported that the Wilmington International Airport operates on a plan that serves as a guide for airport activities. This plan is comprised of eight parts and presentations will be made on the three major components of the plan. He requested Ms. Julia Wilsey to begin the presentation with a report on the Capital Improvement Plan. Report on Capital Improvement Plan Ms. Wilsey reported that the Capital Improvement Plan involves aviation safety and security; maintenance of the vital infrastructure; improving customer amenities and services for passengers and general aviation traffic; and providing the necessary infrastructure to attract economic development opportunities. When determining current assessments, examples of successful airports across the country were studied and many of these methods will be implemented at the Wilmington International Airport. During the past year, the FAA and Fort Lauderdale Fixed Based Operator (FBO) minimum standards have been studied to determine the needs of general aviation commercial activities at the Wilmington International Airport. Staff is in the process working with the FAA and Fort Lauderdale Airport to see if the Fort Lauderdale model can be used at the Airport. An FBO audit has been conducted by an international company to compare the Airport’s FBO operation with other FBO’s operations to be sure that the local FBO operation is competitive. A Non-Destructive Pavement Testing study was conducted to determine the condition of the pavement on the runways. The study has been completed and Staff will develop a plan to make improvements over the next five years. The N. C. Airport Development Plan was established to require all airports to use the same standards. This plan will enable the Airport to determine the areas that need to be addressed and maintained. The Airport Staff has also decided to use the Savannah Airport Terminal as a model for the Phase III Terminal renovation. This is a beautiful plan that will be remembered by the traveling public. The following priority capital projects were discussed and presented: Terminal Renovation Phase III$ 5,300,000 Master Plan Update$ 80,000 Customs Renovation$ 800,000 Runway 6-24 with ILS$ 3,600,000 Runway 6-24 Extension$18,000,000 Pavement Rehabilitation Runway 6-24$ 6,000,000 Relocation of Airfield Surveillance Radar$ 3,000,000 Stormwater Plan$ 50,000 Runway 35 Clearing$ 350,000 Access Control/Security$ 200,000 Land Acquisition$ 6,200,000 In closing, Ms. Wilsey advised that Staff will continue to pursue improving customer amenities and services, maintaining vital infrastructure, and extending and repaving runways. The two new approaches to the Airport will allow the facility to compete for more airline service that in turn will promote economic development opportunities for the Airport Business Park. Report on Financial Plan Mr. James Morton, Director of Finance, presented the Financial Plan and reported that the Airport has an operating budget of $3,716,042. The FY 2003 budget increased approximately 4% over the FY 2002 budget and was balanced without a reserve contribution or subsidy from New Hanover County. The major sources of operating revenues are generated from parking fees representing 36% of all revenue collected, airline leases representing 16%; NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 JOINT MEETING WITH THE AIRPORT AUTHORITY, JUNE 2, 2003PAGE 625 land fees representing 11%; concessions representing 2%; and 5% from other sources. A Maintenance Development and Repair Reserve Account was established with money appropriated each year to serve as a savings account for emergency repairs. The current balance of this account is $1,000,000. The current cash position of the Airport as of April 30, 2003, is $3,803,000. Airport improvement projects receive FAA entitlement and discretionary funds. From 1983 to 1997, the Airport received entitlement and discretionary funding in the amount of $15,249,294 and from 1998-2003, funds were received in the amount of $20,509,310. A 10% local match is required which has been paid by State grants, the Passenger Facility Charge (PFC), or appropriated from the general fund account. Approximately $300,000 is received annually from the N. C. Department of Transportation. These funds are also used for various capital projects. Approval was received to implement the 2003 PFC, which will generate approximately $12,000,000. This revenue will be used to acquire land, begin the third phase of the Terminal Renovation, renovate Customs, and implement the Stormwater Plan. Through the County’s support of the COPS bonds for the Airport, these projects will be completed without having to pay the money up-front. In order for the Airport Business Park to develop more rapidly, the revenue source must be diversified to limit commercial airline dependency. The land space should be better utilized and the industrial site certification must be received so persons coming in from other states and countries will know that the necessary infrastructure is in place, such as fiber optics, water and sewer, etc. Corporate aviation traffic must be increased to escalate fuel sales and raise the tax value on based aircraft. The value of each plan ranges from $50 to $55 million which will significantly increase the New Hanover County tax base. In concluding the presentation, Finance Director Morton advised that the Airport was in a sound financial condition and stated that Staff will continue to explore options to increase revenues. Chairman Griffin referenced the significant amount of funding that has been received from the FAA and NCDOT for capital projects and stated this reflects positively on the members of Staff who have aggressively pursued funding. The Airport Director and Staff have an excellent relationship with the FAA and NCDOT officials. Report on Airport Security Airport Director Rosborough reported that Wilmington International Airport is in compliance with the new airport security regulations. TSA security screeners are in place, a new magnetometer has been purchased, and two explosive tracing devices are being used to check baggage with notification that two more devices will be received. A drug detection dog and bomb detection dog are on site and are frequently used. Additional security cameras will be placed in and outside the terminal, and eventually the Airport will receive an explosive detection system that will swipe the outside of all baggage to detect any type of explosive materials. Perimeter checks of the Airport campus are required twice a shift. Since the campus is comprised of 1,600 acres, it takes approximately 1 hour and 20 minutes to conduct each check. When the federal government issues a terrorism alert changing from the yellow to orange category, the perimeter checks are significantly increased. This requires a great deal of time to be spent by the Public Safety Officers; however, the Public Safety Manager has done an excellent job in meeting all security requirements. The major complaint received from the public about security is the curbside drop-off and pick-up system. The new regulations require the driver to drop-off or pick-up the passenger without leaving the car. Many people object to not being able to get out of the car to assist the their wives or friends at the front of the terminal. An effort is being made to better design the front of the terminal to be more user friendly for persons dropping off and picking up passengers. A chart was presented showing the top 10 destinations of flights from the Airport for the year ending June 30, 2002, beginning with New York as the #1 destination followed by Atlanta, Washington, D. C., Chicago, Orlando, Philadelphia, Boston, Tampa, Los Angles, and Ft. Lauderdale. The Airport now has direct flights to New York, Atlanta, and Washington D. C. Progress is being made to have a direct flight to Chicago, and by next year, there may be an international flight to Europe, which is one reason why Runway 6-24 has to be extended. Director Rosborough showed a chart that the Airport Authority presents to the Congressional Delegation when visiting Washington, D. C. The chart clearly shows each capital project, the cost, and funding sources. Senator Edwards has complimented the Authority and Staff for developing a concise chart that he can reference when he tries to secure entitlement and discretionary funds for the Airport. In closing, Director Rosborough expressed appreciation to the Board for taking time to hold the joint meeting and he offered to answer questions. Chairman Davis advised that he receives numerous calls from citizens who are concerned about paying a higher fare to fly from Wilmington than from Myrtle Beach. He asked if any progress had been made in reducing the air fares. Airport Director Rosborough explained that airfares are not regulated by airports. All air fares are regulated by the airlines based upon volume; therefore, Myrtle Beach has a larger passenger volume and receives lower air fares. Wilmington International Airport needs to recruit more airlines to serve the area and Staff is aggressively pursuing this issue. Chairman Davis asked what impact the Highway 17 By-Pass would have on the Airport. Finance Director Morton responded that better access will greatly improve the exposure of the air terminal and its facilities, which will be a positive factor in attracting more new businesses to the Airport Business Park and entire NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 29 JOINT MEETING WITH THE AIRPORT AUTHORITY, JUNE 2, 2003PAGE 626 region. Vice-Chairman Greer requested the figures on the number of enplanements and deplanements. Airport Director Rosborough responded that enplanements last year were approximately 247,000 and deplanements were 249,000. The highest number was before 2002 at 273,000 enplanements and 272,000 deplanements. The numbers are still down but air travel is beginning to improve. Chairman Griffin expressed appreciation to the Board of County Commissioners for support of the Airport and for taking time to meet with the Airport Authority to hear an update on the current activities of the Airport.. He also noted that when the Patrol Division of the Sheriff’s Department is relocated from the old terminal, U. S. Customs operation will moved into this space. Adjacent to this area will be a small museum. By working with the Aviation Foundation and the N. C. Department of History, the First In Flight Centennial Exhibit now showcasing in Raleigh, N. C., will be relocated to the old terminal once it is renovated. Ms. Linda Pierce, a member of the Aviation Foundation, plans to relocate Piedmont Airline memorabilia to this area of the old terminal since her father was the founder of the airline. The old terminal will be renovated to reflect its original look, and when the renovation work is completed and exhibits are relocated, the State will designate this area as a N. C. Aviation Museum. When international travelers go through Customs, they will be able to see an outstanding exhibit on the history of aviation in North Carolina. Mr. John Coble extended an invitation to Board of County Commissioners to attend the Cessna 170 International Convention on July 13, 2003, at the Market Street Holiday Inn where he will be hosting a reception that will begin at 6:00 p.m. On behalf of the Board, Chairman Davis expressed appreciation to the Airport Authority and Administrative Staff for the informative presentation. He complimented the members of the Authority and Administrative Staff for the excellent manner in which the Airport is being managed and operated. After hearing no further comments, Chairman Davis and Chairman Griffin adjourned their respective boards at 9:10 a.m. Respectfully submitted, Lucie F. Harrell Clerk to the Board