1988-11-14 Special Meeting
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MINUTES OF SPECIAL MEETING, NOVEMBER 14, 1988
ASSEMBLY
The New Hanover County Board of Commissioners met with the
New Hanover County Airport Commission in Special Session on
Monday, November 14, 1988, at 9:35 o'clock A.M. in the Second
Floor Conference Room of the New Hanover County Airport Terminal
Building.
Members present were: Commissioners Jonathan Barfield, Sr.;
W. Albert Corbett, Jr.; Robert G. Greer; Vice-Chairman Fred
Retchin; Chairman Nolan O'Neal; County Manager, G. Felix Cooper;
County Attorney, Robert W. Pope; and Clerk to the Board, Lucie F.
Harrell.
Airport Commission Members present were: Commissioners Paul
E. Gregory; H. Thompson King I I I; Shir ley T. McQueen;
Vice-Chairman William Schwartz; and Chairman, John G. Ashby.
Chairman 0' Neal called the meeting to order stating the
purpose of the Special Session was to discuss alternative funding
options for completion of the new Airport Terminal.
PRESENTATION OF FUNDING OPTIONS
County Manager Cooper gave
terminal building presenting the
alternative funding options:
.,
report on the
proj ect costs
a status
remaining
new
and
PROJECT COSTS SCHEDULE
TERMINAL CONSTRUCTION
LANDS IDE PAVING
LANDSCAPING
SIGNING
LOADING BRIDGES
DESIGN
INSPECTION
$ 5,150,000
3,520,000
433,540
427,000
1,160,000
50,000
475,000
$11,215,540
ALTERNATIVE FUNDING OPTIONS
Option 1
Referendum to be held for authorization to borrow
required funds through General Obligation Bonds.
Option 2
Borrow required funds through a lease-back financing
arrangement over a 20-year pay-back period.
Option 3
Pay as you go. No additional annual appropriation,
no borrowing, completion in 1996.
Option 4
Pay as you go. Additional appropriation from budget,
borrowing of $2,000,000 in General Obligation Bonds.
Option 4 Alternate
Pay as you go. Additional Annual Appropriation by
the County for 3 years. A $2,000,000 General
Obligation Bond issue with no vote required. Project
completed by first quarter of 1991.
Option 5
Special Legislation Authorizing Revenue Bonds.
Discussion was held on enplanement and discretionary funds.
County Manager Cooper stated when preparing the funding options,
he hesitated to use enplanement funds as part of the financing
alternatives since use of these funds would leave the Airport
Authority with no enplanement funds for additional projects;
however, when discussing this matter with FAA, they recommended
use of enplanement funds to complete the terminal which would
assist with obtaining additional discretionary funds. Also, if
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3~4rrES OF SPECIAL MEETING, NOVEMBER 14, 1988 (CONTINUED)
emergency situations should arise such as crash trucks, runway
strengthening or other projects, the Airport would have a much
better chance of receiving discretionary funds for these needs.
Airport
considered.
issued on the
is not in the
revenue bonds
Chairman Ashby asked if revenue bonds had been
County Manager Cooper stated revenue bonds are
basis of revenue generated; therefore, the Airport
position to guarantee revenue bonds. He also stated
are more costly than general obligation bonds.
After a lengthy discussion by the commissioners and Airport n
Commission on each funding alternative and the most acceptable
option to FAA, Vice-Chairman Retchin MOVED, SECONDED by
Commissioner Corbett to select the following option and request
the County Manager to prepare the necessary amendments to the
Capital Project Ordinance. Upon vote, the MOTION CARRIED
UNANIMOUSLY.
option 4 Alternate:
Pay as you go. Additional annual appropriation by County
for three years. A $2,000,000 General Obligation Bond Issue (no
vote required). Project completed by first quarter in 1991.
FINANCING SCHEDULE
Total Cash Required
$9,915,000
FISCAL YEAR 1989/90 - FEDERAL FISCAL YEAR 1990
Continuing Appropriation
Enplanement Funds
Additional Appropriation
State Funds
$1,200,000
893,415
259,755
225,000
Continuing Appropriation
Enplanement Funds
Additional Appropriation
State Funds
$1,200,000
893,415
300,000
225,000
o
FISCAL YEAR 1990/91 - FEDERAL FISCAL YEAR 1991
FISCAL YEAR 1991/92 - FEDERAL FISCAL YEAR 1992
Continuing Appropriation
Enplanement Fund
Additional Appropriation
State Funds
General Obligation Bond Issue
$1,200,000
893,415
375,000
250,000
2,000,000
Enplanement funds will be included in a multi-year grant to
be worked out with FAA as per discussion with that agency on
November 10, 1988.
APPROVAL OF CONTRACT WITH TALBERT, COX, & ASSOCIATES, INC. FOR
DEVELOPMENT OF AN AIRPORT AUTHORITY BUSINESS PLAN FOR THE NEW
HANOVER COUNTY AIRPORT
Vice-Chairman Retchin commented on deferral of the contract
submitted by the Airport Commission for preparation of an Airport
Authority Business Plan by Talbert, Cox, & Associates, Inc.
stating the Commissioners have had ample time to study and review 0'1'
the contract since the November meeting; therefore, if agreeable
he would like to discuss the proposal.
Airport Chairman Ashby stressed the importance of developing
a transition plan and requested approval of the contract with
Talbert, Cox & Associates, Inc.
After a lengthy discussion on the importance of preparing a
business and financial plan, Commissioner Corbett MOVED, SECONDED
by Commissioner Barfield to approve the contract with Talbert,
Cox, & Associates, Inc. for preparation of a Transition Plan
subject to details being worked out by the County Attorney. Upon
vote, the MOTION CARRIED UNANIMOUSLY.
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MINUTES OF SPECIAL MEETING, NOVEMBER 14, 1988 (CONTINUED)
ADJOURNMENT
Commissioner Barfield MOVED, SECONDED by Vice-Chairman
Retchin to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY.
Chairman O'Neal adjourned the meeting at 11:10 o'clock A.M.
Respectfully submitted,
~F~~
Clerk to the Board
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