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HomeMy WebLinkAbout1989-11-01 Special Meeting ,695 , " MINUTES OF SPECIAL MEETING, NOVEMBER 1, 1989 ASSEMBLY The New Hanover County Board of Commissioners and New Hanover County Airport Authority met in Special Session on Wednesday, November 1, 1989, at 9:30 o'clock A.M. in the Airport Conference Room of the New Hanover County Airport, 1501 Hall Drive, Wilmington, North Carolina. I Members present were: Commissioners Jonathan Barfield, Sr.; W. Albert Corbett, Jr. Vice-Chairman Nolan O'Neal; Chairman Fred Retchin; Acting County Manager, Mary Gornto; County Attorney, Robert W. Pope; and Clerk to the Board, Lucie F. Harrell. Commissioner E. L. Mathews, Jr. was absent. Authority Members present were: Chairman John G. Paul E. Gregory; H. Thompson King III; Shirley T. William Schwartz, and Airport Manager, Robert Kemp. Ashby; McQueen; Chairman Retchin called the meeting to order. AWARD OF LOW BID TO DICKERSON CAROLINA, INC. FOR LANDSIDE PAVING PROJECT - CONTRACT #ENG-89-0335 - AIRPORT TERMINAL Director of Engineering & Facilities, Ed Hilton, presented the following bid tabulations received on October 18, 1989, and recommended award of the low bid to Dickerson Carolina, Inc. to pave the entry loop; public parking area; employee parking; car rental parking; access road to the apron and alternates which include the connector road from the old terminal to the new, and the rental car parking access road to the connector: BASE ALTERNATES DBE I Dickerson Carolina, Inc. $2,239,763.60 Blackmon $2,245,220.00 Southern Roadbuilders $2,607,142.30 $ 71,003.00 87,940.00 104,880.10 10.6% NR 8.6% Motion: After discussion, Commissioner Corbett MOVED, SECONDED by Commissioner Barfield to award the low bid (base and alternates) to Dickerson Carolina, Inc. in the amount of $2,310,756.60 which includes an $110,000 allowance in the bid to provide equipment for the public parking lot. The Chairman was authorized to execute the contract subject to approval by the County Attorney. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barfield Commissioner Corbett Vice-Chairman O'Neal Chairman Retchin Absent: Commissioner Mathews A copy of the bid tabulation is contained in Exhibit Book XVII, Page 35. I STATUS REPORT ON AIRPORT TERMINAL COMPLEX Director of Engineering & Facilities, Ed the following status report and financial terminal project: Hilton, presented overview of the Construction Status: 1. Apron Project to be completed within two months. 2. Final construction of building by July 1, 1990. This schedule could be impacted upon if up-grading of USAir area is added to the terminal project. 3. Contracts to be bid: outside signage; outside electrical work; loading bridge and landscaping. Financial Overview: 1. Budget Summary: Active contracts and proposed contracts. j '6 9 SNUTES OF SPECIAL MEETING, NOVEMBER 1, 1989 ( CONTINUED) Potential Additional Costs: 1. Apron Paving Project $140,000 $ 6,949 6,191 $ 13,140 $ 28,290 2. Upgrading of Administrative Area (Plus Additional Equipment) 3. D.O.T. Project Bid Award 1. Landside Paving Contract 2. Signage Contract $200,000 60,000 n. , I J Additional Monies Available After Award of Bids: Director Hilton stated potential additional costs will not be known until all contracts are awarded and completed; however, Staff feels that funds are available within the current budget to complete the project and have additional monies for other desired items. PRIORITY ITEMS FOR NEW AIRPORT TERMINAL Airport Manager, Robert Kemp, presented the following priority items to be considered for the new Airport Terminal if additional funds become available: 1. Part 107 Security System Allowance $ 30,000 2. Emergency Generator (to be negotiated at no additional cost) -0- 3. Floor Finishes $ 10,000 4. Furnishings $100,000 5. Administrative Level Modifications $119,000 6. Interior Landscaping (allot a portion -0- of landscaping budget to be used for interior needs at no additional cost.) 7. Telephone System Allowance $ 80,000 rj I , ' '-~ Airport Director Kemp commented on concession improvements stating basic items such as HVAC units, grills, etc. are currently the vendor's responsibility and have caused potential clients to lose interest in leasing space due to costs involved. He stressed the importance of generating revenue from concessions and recommended including these capital items as part of the building package in order to negotiate more favorable contracts wi th perspective vendors. He also commented on the low bid of $108,000 as a very reasonable price for a second baggage conveyor stating this item would be of tremendous value in handling baggage if the other conveyor malfunctions; however, it is not essential at the present time. Director of Engineering & Facilities, Ed Hilton, recommended immediate approval of the following items with consideration of other items after the final bids are received in December: 1. Part 107 Security Allowance $30,000 2. Upgrade for Phase I of the Administrative Area $13,000 3. Floor Finishes $10,000 4. Incorporate into landscape budget funding for interior landscaping. 5. Approve telephone allowance when completed completed by County Staff. Cost to be determined. ~ I i \ '- -' Other Items to be considered after bids are received in December: 1. Furnishings 2. Phase II of Administration Level Modifications $100,000 $106,000 ~ MINUTES OF SPECIAL MEETING, NOVEMBER 1, 1989 (CONTINUED) .69,7 " 3. Second Baggage Conveyor $110,000 Airport Director Kemp agreed with the list of priority items as presented by Director Hilton stating the main concern of the Airport Authority is to open the new terminal on the targeted date of October 1990 with no delays due to design work or completion of construction. He encouraged the County Staff to be cognizant of the design work that will be required for Phase II of the administrative area so the terminal can be opened as planned. I Chairman Retchin, on behalf of the Board, complimented the Airport Director for an excellent presentation. Director Hilton also expressed appreciation to the Airport Director and members of the Airport Authority for their cooperation and effort given in support of this project. AUTHORIZATION FOR AIRPORT AUTHORITY TO UTILIZE REMAINING FUNDS FROM THE AIRPORT TERMINAL PROJECT Discussion was held on approving expenditure of funds without knowing the actual amount of monies that will be available when the Airport Terminal project is completed. I Director of Finance, Andrew J. Atkinson, commented on cash flow stating the monies listed in the Financial Plan will be collected over the next three years and will become avallable; however, during this period of time the County could experience a tight cash flow depending upon the sale of bonds and debt service. If the County does not sell bonds in this fiscal year or the next fiscal year, General Obligation Bonds (GOB) can be sold for the Airport; however, with the upcoming referendum for the $5,000,000 Parks & Recreation/Senior Center bond issue, it is likely that bonds will be sold within this or the next fiscal year which will delay the sale of GOB bonds for the Airport until a 2/3 debt service figure has been met. Further discussion was held on funding. Director Hilton stated another funding possibility that could occur would be replacement of entitlement funds committed by FAA with discretionary funds at the end of the federal fiscal year. Commissioner Barfield stressed the importance of opening the terminal as a first-class facility and encouraged funding support of interior landscaping and furnishings. Motion: After discussion of no definite way to determine the additional monies that will be available after completion of the construction project, Commissioner Barfield MOVED, SECONDED by Vice-Chairman O'Neal to authorize the Airport Authority to utilize additional funds from the Airport Terminal project working with the County Staff in prioritizing items to be included in the project as monies become available, and reporting to the Commissioners the budgeted funds being appropriated for inclusion of the items approved. Upon vote, the MOTION CARRIED AS FOLLOWS: I Voting Aye: Commissioner Barfield Commissioner Corbett Vice-Chairman O'Neal Chairman Retchin Absent: Commissioner Mathews COMMISSIONER O'NEAL EXCUSED FROM THE MEETING Commissioner O'Neal left the meeting at 10:45 o'clock A.M. DISCUSSION OF USAIR OCCUPANCY IN NEW TERMINAL Director of Engineering & Facilities, Ed Hilton, stated after meeting with USAir, it is estimated that $725,000 of improvements will be needed for USAir to occupy the new terminal. He stated initially financial agreements were to be negotiated between the Airport Authority and USAir under installment J 69t8NUTES OF SPECIAL MEETING, NOVEMBER 1, 1989 (CONTINUED) financing provided by N.C.G.S. 168-20; however, after discussion with Bond Counsel, the statute does not allow Airport Authorities to be eligible for this method of financing. Director of Finance, Andrew J. Atkinson, stated two methods of financing are available: (1) issuance of revenue bonds by the Airport Authority, which is a quite costly and complicated method; or (2) allow the County to negotiate a tax exempt installment financing agreement with USAir. Further discussion was held on installment financing with emphasis being placed on properly informing USAir that all improvements and equipment will be owned by New Hanover County. County Attorney Pope stated after conversation with Bond Counsel, he feels the installment financing method will be recommended and requested authority to proceed with this method of financing when notified by Bond Counsel. [J Motion: After further discussion, Chairman Retchin MOVED, SECONDED by Commissioner Barfield to authorize the County Attorney to proceed with the financing mechanism recommended by Bond Counsel for improvements of the area to be occupied by USAir in the new terminal. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barfield Commissioner Corbett Chairman Retchin Absent: Commissioner Mathews Vice-Chairman O'Neal Discussion was held on amending General Statute N.C.G.S.168-20 to include Airport Authorities. The County Attorney was requested to check into this matter and report back to the Board. DISCUSSION OF IMPROVEMENTS FOR OCCUPANCY OF AMERICAN EAGLE Airport Director Kemp stated the Authority has not received notice from American Eagle as to how they will take care of their improvements for occupancy of the new terminal. A status report will be forwarded to the Commissioners when notice is received. o DISCUSSION OF FINAL SETTLEMENT AGREEMENT BETWEEN NEW HANOVER COUNTY AND JETSTREAM AERO SERVICES, INC. County Attorney Pope requested the Board to authorize the Legal Department to furnish the Airport Authority with an executed copy of the final settlement agreement with Jetstream Aero Services, Inc. since the County agreed to ask the Authority to give full and fair consideration to requests by Jetstream as listed in the settlement. Consensus: It was the consensus of the Board to authorize the Legal Department to forward an executed copy of the settlement agreement with Jetstream Services Aero, Inc. to the New Hanover County Airport Authority. DISCUSSION OF DIFFERENCE IN ELEVATION BETWEEN THE PARKING LOT AND MAIN FLOOR OF THE NEW AIRPORT TERMINAL Airport Director Kemp stated there will be a difference of six (6) feet in the elevation between the parking lot and main floor of the new terminal. Options for vertical transportation between the elevations are not economically feasible; however if monies become available, an effort will be made to raise the elevation of the parking lot to minimize the difference. r '----' DISCUSSION OF SCHEDULING ANOTHER JOINT MEETING Commissioner Corbett commented on the excellent project report and recommended scheduling another joint meeting with the Airport Authority in order to stay informed on the progress of the building and activities of the Authority. I ~ MINUTES OF SPECIAL MEETING, NOVEMBER 1, 1989 (CONTINUED) 6199 ., Consensus: After discussion it was the consensus of the Board to schedule a joint meeting in January. DISCUSSION OF LEAKS IN ROOF OF NEW AIRPORT TERMINAL Authori ty Member, William Schwartz, commented on leaks in the roof of the new terminal and requested that attention be given to this matter immediately. I Director of Engineering & Facilities, Ed Hilton, stated Miller Building Corporation has been notified of the leaks and is in the process of correcting the problem. After discussion of the importance of correcting the leaks before inside work is performed, Director Hilton stated he would forward a status report on the repairs to the Board of Commissioners and Airport Authority. DISCUSSION OF USAGE FOR EXISTING AIRPORT TERMINAL Commissioner Corbett asked how the existing terminal will be used when the new terminal opens. Airport Director Kemp stated interest has been expressed by several airport related businesses, particularly U. S. Customs, for rental of the building; however, no definite plan has been developed by the Authority as to how the terminal will be leased. I DISCUSSION OF REQUESTING THE N. C. DEPARTMENT OF TRANSPORTATION TO CONSTRUCT A SPUR OFF OF HIGHWAY 1-40 Airport Authority Chairman Ashby commented on the availability of federal funds to connect airports to interstate highways stating after contacts with the Governor and N. C. Secretary of Transportation, no definite answer has been received as to whether these funds would be available to the Airport. He stressed the importance of providing a spur from I-40 to the Airport and requested Commissioners Corbett and Barfield to discuss this matter with Secretary Harrington when meeting with him today. Chairman Retchin commented on the possibility of utilizing the above referenced federal funds for construction of a portion of Smith Creek Parkway which will serve as an I-40 connector to the Airport and requested Commissioners Barfield and Corbett to discuss this idea with the Secretary of Transportation. DISCUSSION OF ODOR FROM THE CITY OF WILMINGTON'S NORTHSIDE WASTE TREATMENT PLANT Authority Member, Tommy King, commented on the odor from the City's Northside Waste Treatment Plant stating after approaching the City for some method of resolving this problem, they continually answer that no definite decision can be made until the County decides if they are going to participate in funding an upgrade of the plant. Acting County Manager Gornto stated this decision has been made. Authority Member, William Schwartz, stated if the bond issue passes on November 7, 1989, the City will have ample funds to resolve this problem. I DISCUSSION OF MARKETING EFFORT BY AIRPORT AUTHORITY Authority Member, Shirley McQueen, stated the Authority has contacted a public relations firm to study and review the best way to proceed with marketing of the airport in the eastern and southeastern portions of the United States. Airport Manager Kemp commented on a meeting held with local travel agencies and travel related businesses stating they were very supportive of promoting the airport. He stressed the importance of marketing stating many people are not aware of our U. S. Customs facility. DISCUSSION OF NEWLY FORMED AIRPORT AUTHORITY Commissioner Corbett asked if the Airport Authority is comfortable with their new role and if they feel the Commissioners have granted the necessary powers and flexibility to effectively operate the Airport? ..J .- .7 ~ES OF SPECIAL MEETING, NOVEMBER 1, 1989 ( CONTINUED) Airport Authority Chairman Ashby stated he is quite pleased and complimented Ed Hilton and the County Staff for their cooperation and assistance. Authority Member, Tommy King, stated he has been amazed at the smooth transition and complimented the Airport Staff for an excellent job. Commissioner Barfield stated in his 10 years of serving on the Board of County Commissioners, the Airport Staff and County Staff are working cooperatively together with all negatives removed. He complimented members of the County Staff, the Airport Director, and members of the Authority for an excellent job during this transition stating he feels the Airport is moving in the right direction. ~ Authority Member, William Schwartz, expressed to the Commissioners for their confidence in Authority stating their goals will be accomplished. appreciation the Airport Authority Member, Shirley McQueen, complimented Airport Authority Chairman Ashby for creating committees to address specific areas with each Authority Member being assigned to chair one of the following committees: (1) Building Committee; (2) Personnel Committee; (3) Finance Committee; and (4) Public Relations. She stressed the importance of studying and researching issues before making decisions stating these committees have been a beneficial tool in providing pertinent data to the Authority. DISCUSSION OF PROPOSED HOTEL - AIRPORT Commissioner Barfield asked if any action has been taken by the developer who was interested in constructing a hotel at the airport? Airport Chairman Ashby stated a meeting has been held with a large hotel chain with.no definite commitment as of this date; however, two Charlotte hotel chains and one Raleigh hotel chain have contacted the Airport indicating an interest to located on the Airport. o DISCUSSION OF RECRUITING ANOTHER MAJOR AIRLINE Authority Member, William Schwartz, commented on traveling to Dallas and Atlanta to recruit another major airline stating hopefully this effort will promote inquiries and eventually bring a positive response. DISCUSSION OF PROPOSED AIR SHOW Discussion was held on sponsoring another air show with hopes that a military jet team will perform; however, no definite plans have been finalized. ADJOURNMENT Commissioner Barfield MOVED, SECONDED by Commissioner Corbett to adjourn. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barfield Commissioner Corbett Chairman Retchin Absent: Commissioner Mathews Vice-Chairman O'Neal Chairman Retchin expr.essed appreciation to the Authority and Airport Manager for a very informative report and adjourned the meeting at 11:20 o'clock A.M. Airport status II I j ~------' Respectfully submitted, Cfk~~ Clerk to the Board I \"