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2011-07-06 Regular Meeting New Hanover County .Airport Authority July 6, 2011 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR PUBLIC MEETING July 6, 2011 CALL TO ORDER The New Hanover County Airport Authority met on Wednesday, July 6, 2011, at Wilmington International Airport, 1740 .Airport Boulevard, Wilmington, North Carolina. Chairman Burton called the meeting to order at 5:08 p. m. Airport Authority members present were Paul Burton, Chairman; Robert Rippy, vice - Chairman, John Lennon, Secretary; Charles Days, Harry Stovall, and newly appointed Airport Authority members, Torn Barber and Al Roseman. Also present were Jon Rosborough, .Airport Director; Julie Wilse Deputy nirport Director; Jim Morton, Finance Director; Cary Broughton, Operations Director; Whitney Prease, Facilities Manager; Sandra Routh, Executive Assistant; Wanda Copley, New Hanover County Attorney; Sheila Schult, Clerk to the New Hanover County Board of Commissioners; Richard Masters, The Masters Croup, Inc.; and Steve Bright and Any McLane, Talbert & Bright, Inc. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Agenda Review and regular Public Meeting on June 1, 2011. Mr. Kennon MOVED, SECONDED - by Dr. Kays, to approve the minutes of the June 1, 2011 Agenda Review and Regular Public Meeting as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. SWEARING -IN & ELECTION DP OFFICERS At this time, Chairman Burton turned the meeting over to Mrs. Copley, who introduced Sheila Schult, Clerk to the New Hanover Counter Board of Commissioners, to administer the oath of Office to Mr. Barber and Dr. Roseman. Mrs. Schult administered the oath of office to Mr. Barber and Dr. Roseman, and presented there with a certificate commemorating the occasion. Mrs. Copley recognized the Airport Authority Nominating Committee for the election of officers. Dr. Kays, as Chairman of the Nominating Committee, presented the following slate of officers for Fiscal Year 2012: Mr. John Lennon, Chairman Dr. Charles says, 'Vice- Chairman Mr. Robert Rippy, Secretary There being no further nominations and /or discussion from the floor, Mrs. Copley called for a vote to accept the slate of officers as nominated by the Nominating Committee. Vote: .Authority remembers voted unanimously to approve the slate of officers for Fiscal Year 2012, as nominated. New Hanover County Airport Authority July 6, 2011 Page 2 Mrs. Copley congratulated the new board members and the newly elected officers and turned the meeting over to Chairman Lennon. HAIL & FAREWELL Chairman Lennon, on behalf of the Airport Authority and staff, presented Mr. Burton and Mr. Stovall each with a plaque and a gift in appreciation for their many years of dedicated service to the airport. Mr. Burton and Mr. Stovall briefly commented that they had enjoyed working with Authority members and staff. Mr. Burton, Mr. Stovall and Mrs. Schult departed the meeting at 5: 16 p.m. Chairman Lennon congratulated and welcomed Mr. Barber and Dr. Roseman upon their appointment to the Airport Authority, stating he looked forward to working with there. RECESS Chairman Lennon recessed the Regular Meeting to go into the Agenda Review Meeting at 5 :17 p.m. RETURN TO REGULAR MEETING T`ING Chairman Lennon called the Regular Meeting back to order at 7:05 p.m. ITEMS BY THE PUBLIC Where were no comments from anyone attending the meeting. FINANCE REPORT Mr. Morton reviewed ILM's cash report for the month of May for Authority members. Mr. Dorton reviewed ILM's summary of accounts for the month of May for Authority members. In response to a question from Chairman Lennon, Mr. Morton stated the PSO Seized Funds account would be reopened if funds were to be received. Mr. Morton stated the funds were used to purchase lockers and other PS 0- related items. FACILITIES Mrs. Wilsey reported the Customs Ramp Rehabilitation Project was complete. She stated there were two projects up for public bid on July 28th for ILM's AIP entitlement and discretionary grants with the FAA. The status of the bids will be available at the next board meeting; however, the contracts will not be awarded until the grants are received. GOVERNMENT There were no government issues to discuss at this meeting. New Hanover County Airport Authority July 6, 20 11 Page 3 MARKETING AND PUBLIC RELATIONS Mr. Morton informed Authority members that marketing was continuing to focus on the new Chicago service, the non -stop Washington, DC flights and the Allegiant Air specials. PLANNING- & DLVELOPMIENT Mr. Morton informed Authority members that the Lift Station Project was complete. He stated the developer for the V.A. Medical Facility was moving forward and hoping to break ground in late August. The Congressional office or the VA will be taking the lead for the groundbreaking ceremony. After the facility is completed, there will probably be a grand opening ceremony. also. OPERATIONS REPORT Mr. nrougliton stated A ree total nLx rnber of passengers handled in .Tune was 7 I ,023 �35, 7uzs enplanements + 35,315 deplanernents), which is 7.9% less than June 2010. The total passengers handled year -to -date was 375,430. which is 0.1 % more than the year --to -date statistics for June 2010. Mr. Broughton stated ILM's load factor for June was 91.6%. The monthly fares and fuel comparisons have been completed for June 2011. Mr. Broughton reported ILM's international traffic using US Customs statistics for June: 109 aircraft were cleared, which is 7.9 more than June 2010; and 595 persons were cleared, which is 21.2% more than June 2010. Year -to -date, US Customs has cleared 1,178 aircraft, which is 4.7% Tess that 2010, and 6,735 persons, which is 4.5% less than 2010. Mr. Broughton reported the FAA completed ILM's annual FAR Part 139 Airport Certification Inspection on June 8 and there were no written discrepancies. Chairman Lennon congratulated the ILM team for a great job on accomplishing six years in a row with no discrepancies on the FAR Part 139 Airport Certification Inspection. DIRECTORS REPORT Mr. Rosborough also congratulated the ILM team on the FAR Part 139 inspection, stating that achieving six years with no discrepancies was quite a feat. Mr. Rosborough reported that Mr. Masters gave his quarterly air service report to Authority members during the Agenda Review Meeting. M r. Rosborough described airline Business -to- Business Loyalty Programs, whereby an airline partners with a business so that when its employees fly with that particular airline, the business receives matching loyalty points. American Airlines has this type of program, called its American Advantage. This will allow ILM to promote American Airlines to local businesses, since business customers represent 71 to of our passenger mix. Mr. Rosborough updated Authority members concerning ILM's No. I destination, New York (LGA), and the Delta — US Airways slot swap proposal to the US Department of Transportation New Hanover County Airport Authority July 6, 2011 Page 4 (DOT) and the US Department of Justice (DOJ). US Airways wants to promote greater focus on their Washington, DC (DCA) market, and Delta wants to enhance its New York (LGA) market. Their first proposal was rejected by the DoT and the DOJ. It appears the DoT and DOJ will approve their second proposal. US Airways will be giving up approximately 122 LGA slots to Delta, and in return, Delta will be giving up 48 DCA slots to US Airways. Mr. Rosborough commented that with the first proposal, ILM was one of US Airways' protected locations; however, with the second proposal, it is uncertain how ILM will be impacted, since US Airways is releasing more slots. ILM could lose one, two or (worst case scenario) all three daily LGA bights. He estimated it would take approximately 12-18 months before the slot -swap would impact ILM. In the meantime, Mr. Rosborough stated he and Mr. Masters would be promoting New York service to Delta and other airlines. He said staff is also promoting daily DCA service with US Airways. Mr. Broughton commented that the load factors for the current DCA weekend service was zsz­ inDOUna ana 6 f "Io ouznouna. Mr. Rosborough reported that TSA employees have unionized with the American Federation of Government :employees (AFGE). Rep. John Mica (R --FL), who heads the Aviation Sub - Committee in the House, has proposed that more airports now be allowed the opportunity to opt - out:. Mr. Rosborough stated staff would continue to follow this issue to see if this may be an option Authority members would like to pursue. Dr. Roseman commented that all of the complaints he has heard about ILM are TSA related. Mr. Rosborough and others commented that overall, they have received very positive remarks from customers about ILM's TSA employees. Dr. Roseman asked if ILM pays for TSA's services, and Mr. Rosborough responded "No." Dr. Roseman then asked that if ILM decides to opt -out, would it have to pay for the security screening services, and Mr. Rosborough responded, "Yes." Dr. Days asked if there was a federal subsidy to assist with the payment of this service, and Mr. Rosborough responded. "No."' Mr. Broughton stated that airports currently cannot opt -out, as the privatization option was closed by TSA. after the initial 16 airports opted out. He said this is what Rep. Mica is trying to overturn. Mr. Broughton commented that if airports are allowed to opt -out, TSA 's contract vendors will decide who will work at the airports. He said the upside to this is that the airports will have some input about their customer service, and the screeners will not be unionized. Chairman Lennon commented he had no preference concerning the TSA. issue, as long as their unionization doesn't cost ILM any money.. Dr. Roseman asked if ILM staff currently has any control over the TSA employees. Mr. Rosborough stated that staff has a good rapport with TSA.'s on -site Assistant FSD and can easily address any concerns with her. our overall working relationship with TSA is very positive. Mr. Rosborough reviewed the July and August calendars. ACTION ITEMS Mr. Rippy MOVED, SECONDED by Dr. Days, to approve the following amended Action Items (Chairman Lennon added verbiage concerning input from the airport's attorney to item #3): New Hanover County Airport Authority July 6, 2011 Page 5 1. Approve a contract with DID Consultants for the design, bidding and commissioning of a new passenger boarding bridge at Gate 7. Cost not to exceed $51,000. 2. Approve a contract with Reese Architects to design the Checkpoint Expansion Project. Cost not to exceed $14,000. 3. Commit to approve payment for repairs to Airport Boulevard pavement dip if the issue was not caused by CFPI..]rA water /sewer lines, with input from the airport's attorney. 4. Approve a Change order with Barnhill under the existing contract for pavement repairs to Airport Boulevard to be reimbursed by CFPUA. D. Approve a contract with the winning bidder for the relocation of the water line and extension of the sewer line for VA site in an amount not to exceed $226,000. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. UNFINISHED BUSINESS Mr. Rosborough announced that July 2nd was Chairman Lennon's birthday, and everyone wished him a "happy Birthday. " NEW BUSINESS Chairman Lennon announced that board member committee assignments for FY 2012 will be: Dr. Charles Days — Finance Dr. Al Roseman -- Government Mr. Torn Barber — Marketing & Public Relations Mr. Robert Rippy — Planning & Development Mr. John Lennon — Facilities OTHER ITEMS BY THE AUTHORITY Chairman Lennon reminded all Authority members to be familiar with the New Hanover County Commissioners' Code of Ethics that was adopted unanimously by the Airport Authority at its January 5, 2011 meeting, and distributed copies of the swine to each board member. ADJOURNMENT There being no further business to carne before the Board, Mr. Rippy MOVED, SECONDED by Dr. Kays to adjourn. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Chairman Lennon adjourned the meeting at 7:33 p.m. Prepared by: Respectfully Submitted: Sandy Routh Robert S. Rippy, Secretary