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HomeMy WebLinkAbout1997-09-17 Minutes 4 608 NEW HANOVER COUNTY AIRPORT AUTHORITY MINUTES SEPTEMBER 17, 1997 CALL TO ORDER The New Hanover County Airport Authority met on Wednesday, September 17, 1997 at New Hanover International Airport, 1740 Airport Boulevard, Wilmington,North Carolina. Chairman Roseman called the meeting to order at 5:30 p.m. Authority members present were Al Roseman, Parks Griffin, John Coble, Carter Lambeth and E. L. Mathews, Jr. Also present were Wanda Copley, Airport Attorney; Ed Cox, Acting Airport Director; Winfield Smith, Business Manager/Finance Officer and Janie James, Administrative Assistant. APPROVAL OF MINUTES Mr.Griffin MOVED,SECONDED by Mr. Mathews to approve the minutes of the August 20, 1997 meeting as presented. Upon vote the MOTION WAS PASSED UNANIMOUSLY. kA ITEMS BY THE PUBLIC Mr. Cox introduced Amy Stone, the Station Manager of Corporate Express to the board. Chairman Roseman welcomed her as a new tenant of the Airport and stated that she should contact staff as needed to ensure a smooth transition in their start-up efforts. AUTHORITY REPORTS DEVELOPMENT AND PUBLIC RELATIONS International Activity - Mr. Griffin noted that 49 aircraft and 226 people were cleared by U.S. Customs in August. He commented that international activity continues to increase and shows a 26.3% increase in aircraft cleared and a 31.3% increase in persons cleared year-to-date over 1996. Chairman Roseman had prepared a graph showing increase in international activity when compared to the same time period last year. Development - Mr. Griffin noted that in the near future the Airport would host a luncheon with some of the community leaders with regards to the industrial park. BUDGET & FINANCE Cash Position and PFC Report - Mr. Coble reported that the reconciled cash position for August as prepared by staff showed an unreserved balance at the end of the month of$1,931,197.08 after receipts of $198,224.68 and disbursements of$364,496.71. n F 609 NEW HANOVER INTERNATIONAL AIRPORT MINUTES - SEPTEMBER 17, 1997 PAGE 2 Mr. Coble also noted that a copy of the PFC monthly status report for August had been attached to the agenda and showed a balance at the end of the month of$415,959.00. Audit Report- Mr. Coble advised that the field work for the audit has been completed and that the report should be completed and distributed by the end of October. PFC Funds- Mr. Coble stated that the revision to the original PFC application had been approved and that the Airport would soon reimburse the general fund account from the PFC account. Dr. Roseman had prepared a graph which showed changes in the cash position over the past few months. HUMAN RESOURCES/PUBLIC SAFETY Personnel Status Report-Mr. Lambeth introduced and welcomed Daniel Morgan and Kenneth Young as Maintenance I employees to the Authority. FACILITIES Existing Project Status - Chairman Roseman noted that a copy of the current projects status report for September had been attached to the agenda. FAA Grant - Chairman Roseman MOVED, SECONDED by Mr. Lambeth that the Authority accept the FAA grant for Airport capital projects when received from the FAA and authorized the Chairman to sign the grant documents which will provide FAA funds for 90% of the cost of construction of Taxiway "J", construction of the Equipment Building, construction of Airport security fence and accompanying access perimeter road, and for the feasibility study for safety area of Runway 35. Upon vote the MOTION WAS APPROVED UNANIMOUSLY. Corporate Express - Chairman Roseman MOVED to authorize the Facilities committee to enter into an agreement with Corporate Express and New Hanover International Airport for tenancy space beginning September 29. Motion coming out of committee did not require a second. Upon Vote the MOTION WAS APPROVED UNANIMOUSLY. Air Wilmington Hangar Project - Chairman Roseman sought approval from the Board to authorize the Facilities Committee to proceed with authorization that Air Wilmington be allowed to complete their hangars. He stated that approximately $100,000 of insurance money is due the Airport if the hangars were not replaced. He stated that the cost would probably not exceed the actual cost of construction or$270,000 and that Air Wilmington would finance$170,000 based on a straight line depreciation of 20 years, at which time, after the hangars are complete, if Air Wilmington's lease is not renewed, the Airport would owe Air Wilmington approximately$100,000 for the seven years remaining, or 13/20t of the amount. Additionally, Air Wilmington would have to meet all the requirements, architecturally, wind design, etc. and coloring to 610 { NEW HANOVER INTERNATIONAL AIRPORT MINUTES - SEPTEMBER 17, 1997 PAGE3 complete this project. A brief discussion was held with regard to the Air Wilmington hangar project. Mrs. Copley noted that the paragraph of the lease beginning with "Should the lease be renewed for any subsequent terms, compensation should be given by 6.3 . . ." should be deleted. Mr. Griffin inquired about the status of the hangars should Air Wilmington breach its lease. Mr. Lambeth replied that it should be noted in the contract that if Air Wilmington should breach its lease with the Airport, that the Airport would not owe Air Wilmington anything. Mr. Coble advised that the Authority was in the process of setting up an audit for Air Wilmington. He noted that the audit would determine if Air Wilmington is in breach of its present lease. Mrs. Copley noted that a provision should be included in the lease stating that the Authority has the right to review the construction. A brief discussion was held with regard to Air Wilmington's present lease and whether they are presently in compliance. Mr. Lambeth MOVED that the Airport Authority enter into an amendment to the existing lease agreement } with Air Wilmington to provide for the improvements and reconstruction of the Air Wilmington hangar providing that with the improvements to the hangar, that in the event the lease is not renewed at the end of the current lease term, January 1, 2005 that the cost of construction of the building, which is not to exceed $270,000 and or actual cost, be prorated at the time of termination of the lease and that Air Wilmington, Inc. be reimbursed for 13/20t of the actual construction cost less insurance or other funds received after provision of verification of the original construction cost and proof of payment. That the existing lease agreement be modified by the Airport Authority through its counsel. At the expiration of the lease term, that all new construction will be reimbursable and voided and the Airport Authority will have the right to take possession of the premises without compensation to Air Wilmington according to section 6.4 of the original lease agreement. In the event Air Wilmington's lease is renewed for any length of time, that the obligation to reimburse Air Wilmington, Inc. for any construction cost shall cease. After questions from Mrs. Copley, Mr. Lambeth modified the motion to state that in the event the lease is renewed for any length of time in excess of five years that the obligation of the Airport Authority to reimburse Air Wilmington will cease. In the event the renewal of the lease is for a period of less than five years, the amount of the reimbursement shall decrease by 1/20 th per year through the time that the lease renewal period terminates. After further discussion, Mr. Griffin MOVED to postpone action on the hangar project until the Authority members and counsel have an opportunity to work out the details and provide an acceptable contract. 611 NEW HANOVER INTERNATIONAL AIRPORT 1 MINUTES - SEPTEMBER 17, 1997 PAGE 4 i After a brief discussion, Chairman Roseman noted that at the next work session on October 1, a portion of the meeting would be dedicated to the resolution of the hangar project. l i , Mrs. Copley noted that she and Mr. Lambeth would work on the language of the contract. Coastal Air Tour-Chairman Roseman commented that the Coastal Air Tour would be held on September 27 and 28. L Mr. Coble inquired about the paving issue for ISO which was discussed at the last meeting. Chairman k Roseman noted that ISO's issues were not discussed at the previous Facilities Committee meeting but would be discussed at their next meeting. ii Mr. Lambeth noted that with regard to the Deutsch Building, he has not received information from Bill Fuller of Atlantic Brokerage regarding the environmental problems. Chairman Roseman instructed Mr. Lambeth to invite Mr. Fuller to attend the next Facilities Committee meeting on October 1 at 2:00 p.m. l i F GOVERNMENTAL LIAISON Mr. Mathews commented that he and Mr. Griffin had recently met to discuss plans for their committee but fi did not have a report. 1 Mr. Mathews commented that the recent tour of the Airport provided for the County Commissioners was very successful and felt that an invitation should be extended to the local legislative delegates for the same tour. All felt that the tour would be beneficial. i i DIRECTOR'S COMMENTS i t Mr. Cox noted that the County Commissioners have also approved the FAA grant as co-sponsors during t the meeting which was held earlier in the week. He noted that the $2.7 million grant is the second largest grant acquired by the Airport. t Mr. Coble inquired if the FAA should report that additional money is available, would the Airport have projects ready to accept the funding. Mr. Cox reported that additional taxiway work was currently pending funding. ADJOURNMENT a There being no other business to come before the board, Mr. Coble MOVED, SECONDED by Mr. Griffin to adjourn. Upon vote the MOTION WAS PASSED UNANIMOUSLY. Chairman Roseman adjourned the meeting at 6:20 p.m. i Prepared by: Rwectful ub ed: l Janie James ;l, /,/ �'(jvd t/ Willard G. Plentl, Jr., P. . Corrrtary 1