2011-06-01 Agenda Review New Hanover County Airport Authority
June 1, 2011
Page I
NEW HANOVER COUNTY AIRPORT AUTHORITY
AGENDA REVIEW MEETING
June 1, 2011
ASSEMBLY
The New Hanover County Airport Authority met for Agenda Review on Wednesday, June I ,
2011, at 4 :05 p.m., in the Executive Conference Room at Wilmington International Airport, 1740
Airport Boulevard, Wilmington, North Carolina.
Airport Authority members present were Paul Burton, Chairman; Robert Rippy, vice Chairman;
John Lennon, Secretary; Charles Days and Harry Stovall. Also present were Jon Rosborough,
Airport Director; Julie Wilsey, Deputy Airport Director; Jinn Morton, Finance Director; Gary
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Assistant; and Steve Bright and Army McLane, Talbert & Bright, Inc. Wanda Copley, New
Hanover County Attorney, was not in attendance
Chairman Burton called the meeting to order and announced that the purpose of the meetinc was
to discuss the agenda for the Authority's June 1, 201 1, Regular Public Meeting.
Mr. Rosborough introduced two guests from American Airlines: Paige Teel, Regional Sales
Manager, and Isabella Juarta, who were visiting for a couple of days. Ms. Teel described the
Chicago air service flights. She said she and Isabella were in the Wilnr�ington area making
contact with the area's travel agencies and small to medium -sized businesses that need air travel
primarily going west. She will also be working to bring business traffic to Wilmington. Her
goals are to build a loyalty base with air traffic going both ways and to eventually add additional
capacity to stay here in Wilmington. In response to Mr. R.ippy's questions, Ms. Teel said that
American would be flying the Embraer 1.45 (50 seats) or the Embraer 140 (44 seats); and the
flight time will be approximately 2 hrs. 15 rain. She said she would be working with the local
Chambers of Commerce and various economic development groups throughout Southeastern
North Carolina. In response to Mr. R.ippy's question, Ms. Teel. stated American has seasonal
service available from Chicago to several ski resort locations in Colorado, as well as Jackson
Hole, Wyoming and Utah.
Chairman Murton thanked Ms. Teel and Ms. Juarta for stopping in for the meeting and stated that
he hoped American Airlines and ILM would have a long and productive relationship. Ms. Teel
and Ms. Juarta departed the meeting.
AGENDA ITEMS
Special Events: Mr. Broughton had no special events to report; however, he stated the ILM's
annual PAR. Part 139 Airport Certification Inspection would take place on June 8 -9, 2011. He
commented that the Maintenance and Public Safety Departments had been working diligently out
on the field and around the airport area to prepare for the inspection.
Finance Report: Mr. Morton reviewed the April financial items, commenting that factoring out
the air show loss, the month of April overall was a good month. ILM is still on budget and doing
well.
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June 1, 2011
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Mr. Morton stated the FY 2012 operational Budget of $6,559,800 and Capital Budget of
$21,30',500, the FY 2012 Schedule of Fees, and the FY 2011 year -end budget adjustments (for
governmental accounting purposes), would be on the list of Action Items for approval at the
Regular Meeting.
Mr. Morton said that he had two leases for approval at the regular Meeting. There is a young
woman who wants to lease the house at 1902 Farley Drive at $650 per month. And, there is a
lease for the hangar at 1501 Morris Road, to PBI Development, for $7,250 per month for six
months with a one -year extension.
Mr. Morton updated Authority members on the status of lease negotiations with the rental car
agencies, stating they have come to an agreement on a lease document that will be tendered to
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returned for Airport Authority signatures. ILM will retain the four current rental car agencies,
with Enterprise corning on board at the fifth counter space. In response to Mr. Rippy's question,
Mr. Morton stated existing rental car parking spaces (133 spaces total) were reconfigured so that
each agency would get a minimum 20 parking spaces to operate, with the remaining 33 spaces
divided among the five agencies based on their market share. He stated the rental car agency
concession lease would be on the list of Action Items for approval at the Regular Meeting.
Mr. Morton stated the rental car agencies had programmed the Contract Facility Charge (CFC)
into their systems on June 15, so that it will become effective on July 1, 2011.
Mr. Morton reported the VA is looking at breaking ground late summer/early fall 2011, and
Authority members' approval is needed on a Mon- Disturbance Agreement (NDA) for finalization
of their funding documents.
Facilities; Mrs. Wilsey reviewed several Action Items for Authority members' approval at the
Regular Meeting, including: the Hunter Construction settlement after Mrs. Copley's final
review; the replacement of ECS with S&ME on the new Parking Lot Testing Contract; a work
Authorization with Talbert & Bright for the Runway 6 -24 PAPI Design Modifications in
accordance with the FAA's new guidance; and the adoption of a new FAA policy on Residential
Through the Fence Access (RTTF). She explained that a RTTF Access easement (for those
airports that have one) allows adjacent residential airplane owners to taxi to the airport for
takeoff. She stated ILL. does not have a RTTF easement. Mrs. Wilsey stated the FAA is
reviewing the work Authorization with Talbert & Bright to pipe the ditches on the approach end
of Runway 24, so the request for Authority members' approval will be postponed until a later
meeting.
Mrs. Wilsey informed Authority members about a proposed hangar layout concept plan /location
submitted by Air Wilmington that would need to be submitted to the FAA for an airspace study
before construction. She stated it conforms to ILM's General Aviation Master Plan and staff
recommends approval. There was a brief discussion between Authority members and staff
concerning the location of the hangars and Air Wilmington's commitment to the project.
Mrs. Wilsey informed Authority members that after a visit by American Airlines, it was
determined they would be sharing the jetbridges on Gate 5 and Cate S, depending on their
schedule, with the other airlines. However, with US Airways running a full schedule and
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June 1. 2011
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numerous flight changes resulting from weather in the Northeast, staff, in consultation with Dick.
Masters, ILM's Aviation Consultant, recommends purchasing a jetbridge for Gate 7. Staff is
doing a preliminary investigation on the power requirements to run the jetbridge, and Don
Mesecher is looking at the ramp layout to identify which model is needed according to ILM's
aircraft fleet and purchase options. Mr. Masters recommends having this new jetbridge in place
within 12 months. Mrs. Wilsey stated a new jetbridge will cost approximately $500,000 to
$600,000, but would be eligible for reimbursement through the FAA. In response to Mr. R.ippy's
question, Mrs. Wilsey stated the jetbridge would be large enough to accommodate a small
regional jet (RJ) through a narrow -body airliner, similar to the j etbridge at Gate 5.
Updating Authority members on the Airport Boulevard Paving and Lighting Project, Mrs.
Wilsey reported the lighting control panel was installed, and the manufacturer will be sending a
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of a load will the boulevard and parking lot lights take off of the terminal building's system, and
what was the size of the panel box installed. Mr. Prease said he did not know the exact answer to
his questions, but would get the information to him.
Mrs. Wilsey stated the installation of the Rescue Base roof was complete.
She said the LED Airfield Guidance Sign Project was complete, minus the two non - standard
signs for installation at the FBOs, which will be installed upon delivery.
Mrs. Wilsey indicated that today — June 1 st — was the NTP for the New Parking Lot Project.
ECC has 140 days under the contract to complete project on or about October 20th.
She reported the Airfield Painting /Inspection Preparation Project was completed, with Mr.
Prease and Mr. Foster ensuring the work was carried out in accordance with FAR Part 139
requirements.
Mrs. Wilsey stated Hasco would be returning to seal the Customs Ramp June 7 -10, and they will
also be sealing the taxi cue line at the main terminal from the Airport Boulevard Project.
In reference to the Executive Conference Room Upgrade, she reported staff was looking at
various telephone systems and working with GeniSys to determine what our best options are to
bring the conference room up -to -date with current and future technology.
In response to Mr. Lennon's question, Mr. Prease stated Tinney Painting had completed painting
the canopy over the terminal entrance, but would be returning to finish some touch -up work.
Government: There were no items for discussion.
Marketing and Public Relations: Mr. Morton reported that marketing was focusing on American
Airlines and the new Chicago flight, and that preparations were underway for celebration of the
first flight on Saturday, July 2 at 5:15 p.m.
Planning and Development: Mr. Morton updated Authority members on current property
acquisition negotiations, stating heirs to the estate of the owners of the Acorn Branch Road
property were holding up the final sale of that property, and the closing on the Blue Clay Road
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June 1. 2011
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property was set for June 15th.
Mrs. Wilsey announced she received an invitation to attend a public meeting on June 13 to
discuss the planning of the Independence Boulevard extension from Market Street and Covil
Avenue to the Martin Luther Ring Jr. (MLR) Parkway. She stated the airport would be
concerned with the height of the bridges and signs where the interchange occurs at Derr Avenue
and the MLR Parkway. However, because it is a Federal highway project, they will have to file
a 7460 (Notice of Construction) with the FAA. The project is scheduled for completion in 2020.
Operations Report: Using charts for illustration, Mr. Broughton discussed airport statistics for
the month of May, including fuel price comparisons, fuel flowage amounts, airfare comparisons
with MYR and RDU, and total passengers handled. He stated the load factor for May was
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Mr. Rippy questioned the reasoning for the airport's PSO vehicles running their blue lights at the
front curb, suggesting the procedure was unintentionally sending the wrong signal and
recommended discontinuing the practice. Mr. Broughton said they would stop immediately.
Some discussion ensued between Mr. Rippy, Dr. Rays and Mr. Broughton about the continuing
problem with customers leaving their cars unattended at the front curb.
Directors Report: Mr. Rosborough said he and Mr. Broughton would be attending the ACI -NA
JumpStart Conference in Cleveland, Ohio, June 21-24, and they would be meeting with
approximately seven different airlines. This is the "speed dating" conference where airports and
airlines meet to discuss and promote new air service destinations and additional flights to current
destinations. He commented this venue is where seeds are planted that can potentially result in
acquiring new airlines and destinations, as was the case with Allegiant and American Airlines.
Mr. Brian Johnson entered the meeting at 5:02 p.m.
Mr. Rosborough stated he and Mr. Broughton would be meeting with existing carriers to propose
one or two of ILM's top destinations to give them the first right of refusal to provide service to
those destinations. He said they would be proposing DFW to American Airlines, since that is
their plain hub and ILM's ninth most popular destination. DFW is of great interest to the movie
industry going to the west Coast. Mr. Rosborough stated they would also be promoting South
Florida, since FLL, MIA and PBI combined would be IL's sixth most popular destination. Mr.
Rippy stated Spirit Airlines has a non --stop flight to FLL out of MYR, which takes business away
from ILM's rights to South Florida.
Mr. Rosborough discussed the New York/Washington, DC slot swap issue. He reported there
was a second proposal put forth by the two airlines, Delta and US Airways, which has not yet
been approved by the USDOT; however at this time, it appears to have a more favorable
acceptance by the USDOT and the two airlines. He stated that the first proposal indicated that
ILM would be one of the airports not affected by the New York slot swap; however, he is unsure
how the second proposal, if it is approved, would affect ILM. He stated Wilmington has always
had a strong market to New York and has been ILM's No. 1 most popular destination for a
number of years. If US Airways has to reduce its flights to New York, he feels another carrier
would pick up those flights and provide that service. In response to Dr. Days' question, Mr.
Rosborough stated it make take up to a year to resolve the slot swap issue. Mr. Rosborough
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June 1, 2011
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stated the load factor for the weekend service to DCA was 82 %. He indicated business travelers
are finding they can use the non -stop weekend service for one end of their trip. He stated that he
and Mr. Broughton would be promoting full -time service to DCA at the JurnpStart Conference.
He added that if US Airways has to reduce ILM's service to LOA due to the slot swap issue, he
hoped they would provide full-time service to DCA.
Mr. R.osborough discussed with Authority members an issue concerning non-payment of ILM's
US Customs fee. He stated ILM has a ramp fee of $75, $15 of which goes to the BBOs; the
remaining $60 is for the operation and maintenance of the US Customs facility. .After some
discussion, it was the consensus that staff should utilize Small Claims Court to enforce payment
of the fee.
In fesponse to Mr. Rip py's question, Mr. R.osborough stated the proposed douse version of the
FAA Reauthorization Bill would discontinue the funding for small airport support projects
(BAS). Mr. R.ippy stated this might open some slots that Mr. R.osborough may want to pursue at
the JumpStart Conference.
ADJOURNMENT
There being no further business to come before the Board, Chairman Burton adjourned the
meeting at 5:34 p.m.
Prepared by: Respectfully Submitted:
Sandy Routh
John D. Lennon, Secretary