1991-12-11 Work Session
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 11, 1991
739
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ASSEMBLY
The New Hanover County Board of Commissioners held a Special
Work Session with the New Hanover County Airport Authority on
Wednesday, December 11, 1991, at 3:25 o'clock P.M. in the
Conference Room of the New Hanover International Airport, 1740
Airport Boulevard, Wilmington, North Carolina.
Members present were: Commissioners Jonathan Barfield, Sr.;
Fred Retchin; William H. sutton; Vice-Chairman Robert G. Greer;
Chairman E. L. Mathews, Jr.; County Manager, Allen O'Neal; County
Attorney, Robert W. Pope; and Clerk to the Board, Lucie F. Harrell.
Airport Authority Members present were: Chairman Jack Ashby;
Paul Gregory; H. Thompson King III, and William Schwartz. Shirley
McQueen was absent.
Chairman Mathews and Airport Authority Chairman, Jack Ashby,
called the meeting to order.
STATUS REPORT ON AIRPORT ACTIVITIES
Airport Authority Chairman, Jack Ashby, expressed appreciation
to the Board of County Commissioners for their leadership and
cooperation in transferring the Airport operation to an Airport
Authority.
The following report was presented:
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The year, 1991, has reflected positive growth for New Hanover
International Airport with total aircraft operations and enplaned
revenue passengers increasing over 5% along with a 16% increase in
cargo passing through the Airport. The Airport is a key factor in
the region's economy and the figures are most encouraging during a
recessionary year.
Report from the Property Management Committee: Mr. Paul
Gregory, Chairman of the Property Management Committee presented
the following capital projects:
1. $4 million Runway 16/34 Rehabilitation Proiect. Ninety
percent of the work is completed with an estimated
savings of $300,000 due to the reduction of costs in
petroleum products utilized in the manufacture of asphalt
materials. The proposed use for the $300,000 is as
follows: (a) construct a road around Runway 16/34 to
provide adequate access for fire trucks and rescue equip-
ment; (2) installation of lightening protection system for
the airfield; and (3) convert manually controlled runway
lights to remote control.
2. $200,000 Security Upqradinq proiect: This project was
just recently approved, by FAA. The design documents
are being finalized with acquisition and construction
of the project beginning June 1992.
3.
Additional Terminal Related Expenses Incurred by
Airport Authority since September 1990: A list
expenses was presented in the amount of $41,645.
the
of
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4. Terminal Work to be Completed: A list of items to be
completed was presented in the amount of $14,130. Other
items were listed with the first priority being the pro-
vision of a shelter for Airport rescue and fire fighting
equipment, which now remains uncovered.
It is the understanding of the Airport Authority that unused
funds from the terminal proj ect will remain in the Airport' s
account; therefore, these funds will be used to complete many of
the necessary items that have not been accomplished.
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M~NUTES OF SPECIAL WORK SESSION, DECEMBER 11, 1991
740
The following punch list was presented on items that have not
been satisfactorily completed with the construction of the new
terminal building:
LEADER PUNCH LIST
1. No roof warranty has been provided to meet specifications
requirements.
2.
Reserve Materials: (a) Synthetic Marble Tile: No reserve
amount was specified, however, the Airport would like to buy
approximately 400 tiles for future repair work; (b) Ceilinq
Tiles: Specifications called for 2% of each size and type of
tile; however only scrap tiles have been left on the job; (c)
Resilient Floor Tile: Several partial boxes left on the job.
Specifications call for "one box for each 50 boxes or fraction
thereof, for each type, size & color"; (d) Carpet: An overrun
of 5% is required in the specifications excluding "scraps".
An estimated 1.5% of total primary color was provided and 0%
of other colors. The specifications called for at least 200
sq. yd. of primary color plus 5% of other colors; and (e)
Wall Coverinq: specifications call for "6 lineal yards of
each type, color, and pattern of wall covering. Only scraps
remain.
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3. Front Windows: They have not been replaced, but supposedly
have been ordered.
4. Connector roof leak was fixed, however, dry wall damage was
not.
5. Floor vents along connector have not been carpeted as agreed.
6.
Need an answer on mail floor tile replacement as soon as
possible. Due to safety concerns, the Airport will
temporarily replace two badly broken tiles at the west wing
expansion joint. The cost will be recorded and charged to the
responsible party for reimbursement.
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REAGAN PUNCH LIST:
1. Voice chip fire alarm mods have not been installed.
DICKERSON PUNCH LIST;
1. Replacement of dead trees in front of terminal as agreed.
WARRANTIES:
1. Leader Warranty: (a) Arch window in connector still broken;
(2) service dock stair repair is not acceptable; and (3) no
work has been performed on the canopy roof leak as of this
date.
2. Reaqan Warranty: Establishment of February 12, 1991, as the
beginning of the warranty for the access control system has
not been agreed upon.
3.
Southern Roadbuilders Warranty: No replacement grate has been
received as of this date.
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The Airport Authority
following deficiencies and
correction of these problems
damage in the future:
is extremely concerned over the
recommends immediate action for
in order to avoid major structural
1. Main roof continues to leak even without rainfall. There
appears to be condensation. This item should be added to the
HNTB punch list.
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 11, 1991
741
2. Retaining wall cracks continue to "weep" after each rain
causing stains. No response has been received as to potential
damage to the structural integrity.
3. Cracking floor tiles.
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REPORT FROM THE BUDGET AND FINANCE COMMITTEE
Mr. Tommy King commented on the budget and stated the amount
of funds needed from the County as proj ected two years ago is
substantially less than anticipated. He requested the Airport
Manager, Bob Kemp, to present the updated Airport Business Plan.
Report on Updated 1992-96 Airport Business Plan: Several
factors have occurred since the Airport Authority was formed in
July 1989 which created a need to update and revise the original
Airport Business Plan. Major factors contributing to this revision
are as follows:
1. The recent nationwide recession has negatively impacted on the
development and financial projections contained in the
original plan. The original plan projected a 4.4 acres per
year growth in land leased to tenants. This growth has not
occurred.
2. The original plan anticipated that the Airport Authority would
have the use of State transportation grant funds for capital
projects at approximately $300,000 per year; however, until
fiscal year 1995, the State grant funds will be retained by
New Hanover County as repayment for funds advanced toward the
construction of the new passenger terminal building.
3.
The Airport Authority now has a year of operating experience
in the new terminal building and costs are more clearly
identifiable.
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4. The U. S. Congress recently passed legislation which will
enable the Airport to participate in Passenger Facility
Charges based on enplaned passengers beginning late in 1992.
The Airport Authority will request the Federal Aviation
Administration for authorization to collect a Passenger
Facility Charge of $3 per enplaned passenger. These funds can
be used for capital improvements which meet the statutory
limitations and also for the Airport's local share.
Under the revised Airport Business Plan the County's
contributions are anticipated to drop from the projected $3,172,000
to $1,653,700 for a difference of $1,518,300 not including the
$100,000 transfer from the terminal project.
other financial reports presented were as follows: Forecasted
Balance Sheets; Forecasted Statements of Revenues & Expenses &
Changes in Retained Earnings; Forecasted Statements of Cash Flows;
Forecasted Schedule of County Contributions; and Notes of
Forecasted Financial Statements.
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Based on the financial forecast, it appears that the Airport
Authority will at some point in the future achieve operational
self-sufficiency with transitional assistance from New Hanover
County. The forecast indicates that the County must play a
significant role in the continuing improvement of airport
facilities in the form of capital grant assistance.
Report on Resource Development
Mr. William Schwartz, Chairman of the Resource & Development
Committee, commented on a recent meeting with Delta officials in
Atlanta, Georgia, and stated New Hanover International Airport is
a high priority on their list for the provision of jet service;
however, no commitments have been obtained. He presented the
following resource development recommendations:
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 11, 1991
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1. Promotion of the airport as a "regional" facility to assist
the Airport in better reaching its market potential to
maximize enplanements and possibly secure financial assistance
from adjoining counties. Businesses in adjoining counties are
primary users and benefactors of the New Hanover International
Airport.
2. Successful marketing of remaining space at the maximum rates
possible in the new terminal.
3. Aggressively market airside and lands ide property within the
contracting constraints imposed by FAA. The Industrial Airpark
concern should be a cornerstone of lands ide marketing efforts.
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DISCUSSION OF PUNCH LIST ITEMS
Commissioner Barfield inquired as to why the punch list items
have not been corrected and asked if these contractors have been
paid?
Deputy County Manager, Mary Gornto, stated Staff is working
with the contractors to resolve these items. The contracts with
Dickerson and Southern Roadbuilders have been paid in full;
however, the trees could not be planted until winter, and Staff is
working with Southern Roadbuilders for replacement of a small grate
which is a warranty item. The contracts with Leader Construction
and Reagan Electric have not been paid. Leader Construction has
not completed the punch list or warranty items; however, Staff is
working to resolve these issues. Reagan Electric is not responding
due to financial difficulties, and Staff is in the process of
working with the surety to deal with the circumstances.
commissioner Barfield expressed concern for the length of time
involved with resolving these problems and recommended that the
Legal Department proceed immediately to contact the bonding and
surety companies.
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County Attorney, Robert W. Pope, stated the County is
presently working with one bonding company; however, he will be
glad to proceed with contacting the other companies.
commissioner Retchin expressed concern for HNTB not being
responsible for seeing that specifications were met before
releasing funds, particularly for such items as additional carpet,
tiles, wall covering, etc. and recommended that the County Attorney
involve this firm in correcting the situation.
Vice-Chairman Greer requested an update on any future problems
wi th the construction proj ect and requested that a report be
forwarded on the progress made in resolving these items.
MEETING CONVENED TO TOUR THE NEW TERMINAL
Chairman Mathews convened from Special Session to tour the
facility and observe the items that need to be corrected from 4:36
o'clock P.M. to 5:01 o'clock P.M.
Consensus: After discussion, it was the generally agreed that the
structure of the building is sound and that the County Attorney and
County Manager should proceed immediately with the necessary legal
process to correct the construction problems.
Commissioner Barfield commented on the bad press received with
reference to the structural condition of the building and stated
the problems are not as severe as indicated; therefore, he hopes
the media will take time to factually inform the public about the
condition of the building.
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Chairman Mathews complimented the Airport Authority for an
excellent job in the operation of the Airport and encouraged the
Authority to be as cost effective as possible in the daily
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MINUTES OF SPECIAL WORK SESSION, DECEMBER 11, 1991
743
operation of the Airport, particularly during these difficult
economic times.
It was agreed by all members present that the new terminal is
a valuable addition and, asset to the community as weil as to
southeastern North Carolina.
ADJOURNMENT
Motion: commissioner Barfield MOVED, SECONDED by Vice-Chairman
Greer to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman Mathews adjourned the meeting at 5:09 o'clock P.M.
rVeC7;,Cd.
\-rF. Harrell
Clerk to the Board
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