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2014-02-05 Minutes New Hanover County Airport Authority February 5, 2014 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR PUBLIC MEETING February 5, 2014 CALL TO ORDER The New Hanover County Airport Authority met on Wednesday, February 5, 2014, at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Chairman Barber called the meeting to order at 5:00 p.m. Airport Authority members present were Tom Barber, Chairman; John Perritt, Vice-Chairman; Jonathan Crane, Secretary; Carter Lambeth; and Al Roseman. Also present were Jon Rosborough, Airport Director; Julie Wilsey, Deputy Airport Director; Jim Morton, Finance Director; Gary Broughton, Operations Director; Caitlen Buffkin, Marketing and Accounting Assistant; Rose Davis, Executive Assistant; and Steve Bright and Amy McLane, Talbert& Bright, Inc. Guests present included Jack Gebbie, The Jackson Group; and Derreck Boring, Air Traffic Control Tower. Visitors present included W. Chris Stephens, Hal Reichardt, Gerry Tremblay, Butch Truelove, Chris Sikes, Ryan Evans, Chris Tremblay, Robert Hendfro, Caitlen Dineen, Bill Cherry and Sandy Collette. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Public Meeting on January 8, 2014. Mr. Lambeth MOVED, SECONDED by Mr. Perritt, to approve the minutes of the January 8, 2014 Regular Public Meeting as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. PUBLIC COMMENTS None. SPECIAL EVENTS Mr. Broughton reported that ILM, in partnership with the YMCA,will hold a 5k run on RWY 17 that has been scheduled for October 11, 2014. The run will be coordinated by Benji Jones of Jones Racing Company and Set Up Events. Staff is also researching the possibility of an aviation day to coincide with this event. Mr. Broughton reported that staff had a booth at the 2014 Conscience Fair and 20 people signed up to volunteer at ILM. Mr. Morton reported that the Circus will be at ILM in April to coincide with the Azalea Festival. Wanda Copley, New Hanover County Attorney, arrived at approximately 5:10 pm New Hanover County Airport Authority February 5, 2014 Page 2 GUEST PRESENTATIONS Mr. Rosborough introduced Mr. Jack Gebbie, Senior Director of Research Services, for The Jackson Group, Hickory, North Carolina. Using PowerPoint presentations, Mr. Gebbie shared with the Authority the results of the Passenger Satisfaction Survey and Market Perception Study conducted and prepared by The Jackson Group for ILM. In summary of the Passenger Satisfaction Survey, Mr. Gebbie reported that ILM has the basics covered in terms of making it easy for passengers to arrive, park, enter, and get through security and screening with a very clean and friendly atmosphere. Business travelers using ILM are very loyal with nearly three fourths (73.8%) making seven (7) or more trips a year. Mr. Gebbie indicated the areas ILM should continue to promote include convenience of parking and getting through security screening, courtesy and cleanliness. In summary of the Market Perception Study, Mr. Gebbie indicated that ILM has a strong following from business and leisure travelers in our catchment area who are mainly concerned with convenience, reasonable fares, and ease of access in and out of the airport include loyalty of the frequent business traveler who ranks ILM high in saving travel time to/from the airport, convenience of parking and getting through security and that ILM can use airports such as RDU or MYR. Mr. Broughton reported that staff created a template to determine what you are really saving in the difference of the ticket price when you factor in gas costs, mileage on vehicle, meals, and hotel stays and the results showed that with a $100 lower fare and a hotel stay, they actually ended up spending $88 more than if they flew out of ILM. Mr. Broughton introduced the Traffic Control Tower and Mr. Boring presented information conce Mr. Boring reported that the FAA finally has a budget for the first time in over 4 years and that the FAA is actually hiring more anticipates hiring 3 new controllers and 2 transfers from other towers this year. Mr. Boring reported that there are 132 f that 56 of those are in the Eastern Region; and, that there are 65 nationwide that are Level 6 towers like ILM. In response to Mr. tower levels, Mr. Boring explained that the FAA recomputed the index number about 4 years ago and reevaluated all facilities and many were downgraded. This index number takes into consideration the number of operations and airfield complexity as well as the type of aircraft. Mr. Boring stated you get a higher rate for commercial aircraft and intersecting runways. Mr. Boring confirmed that the change in process for traffic count from maMr. Boring explained the other thing that affected numbers was the FAA allowing international flights to fly over the first available customs facility as long as their first stop had a custom facility. Mr. New Hanover County Airport Authority February 5, 2014 Page 3 Boring stated that a decrease in GA traffic nationwide negatively affected the tower numbers while military traffic has helped increase tower numbers. Dr. Roseman initiated a discussion regarding predicted pilot shortages. Mr. Boring reported that the Traffic Count Index (CI) for Level 6 towers has to be consistently and steady through 2013 at an average of 113.78 operations per month. In replied that when a tower goes from Level 6 to Level 7 there is an increase of staffing and money and it may also move the tower up in line for new equipment as it is available. question, Mr. Boring stated that drop pretty significantly to drop from a Level 6 to Level 5. At Level 5 the FAA would cut ower currently has 24 employees on staff. a reality out there any more due to the continuous drop in GA traffic nationwide. ded that while ILM has a lot of trainees, there is always a qualified controller behind them who can over key them. FINANCE REPORT December financials, cash report and summary of accounts. Mr. Morton reported that the 36 projects in the PFC application should be approved in June. property insurance coverage and that should be out for bid in the next few days. Mr. Morton requested that the Authority approve a 1 year lease for the house at 1902 Farley Drive. Mr. Lambeth MOVED, SECONDED by Mr. Barber to approve the 1 year lease at 1902 Farley Drive. The MOTION WAS APPROVED UNANIMOUSLY. Dr. Roseman initiated discussion regarding expenses associated with this rental property. FACILITIES Mrs. Wilsey requested that the Authority approve the following action items: Talbert & Bright Work Amendment (AIP 43) - Approve a work authorization amendment for the RWY 24 ditch project. The Memphis ADO has requested the completion of a short form Environmental Assessment (EA) for the project. This work authorization is a lump sum amount New Hanover County Airport Authority February 5, 2014 Page 4 of $16,100 to get that work accomplished. We are on a tight timeline since this is our FY14 Entitlement project. Talbert & Bright Work Amendment (AIP 44) - Approve a work authorization amendment for the design, permitting, and bidding of the RWY 17 Easement Clearing project. This work authorization is a lump sum in the amount of $42,120 and a sub consultant budget not to exceed $9,790. Maximum cost is $51,910. Dr. Roseman MOVED, SECONDED by Dr. Crane to approve the Facilities action items above. The MOTION WAS APPROVED UNANIMOUSLY. r facility, reported that the weather is still not cooperating with the paving. Completion should be the end of February with move-in the first of March, provided we get the weather to complete paving activities. GOVERNMENT Nothing to report. MARKETING AND PUBLIC RELATIONS Mr. Morton reported that staff is moving forward with more television commercials incorporating convenience and showing the value of flying out of ILM and saving time. Dr. Roseman asked that the marketing budget be reported to the Authority monthly. Dr. Roseman distributed a handout with fuel prices within a 50 miles radius of ILM and asked if there was anything the airport could do to be more competitive and bring more aircraft into ILM. Dr. Roseman asked Mr. Rosborough to come up with some suggestions of how we could better do this or exactly what we are charging our FBOs. commercial opposed to grass strips. Dr. Roseman asked the administration to look at this and see if there is anything we could do to increase the traffic and increase the service to the community. Dr. Crane asked if the FBOs could give a suggestion sheet to staff within the next couple of weeks to see what the Authority could do to help lower the costs so as not to cut into profit margins. Mr. Rosborough stated that staff does look at the fuel prices at the 9 commercial airports and when you pull out the 3-4 general aviation airports in that data comparison, the average for Avgas was $6.68 and JetA was $6.33 and our two FBOs were $6.58 and $6.38 for Avgas and $5.81 and $5.26 for JetA, well below average. Mr. Rosborough reminded the Authority that these general aviation airports receive subsidization from their City and County to help offset their operating expenses which is not the case for ILM. New Hanover County Airport Authority February 5, 2014 Page 5 Mr. Lambeth stated that fuel sales have dropped off by 1/3, at least, in the last 5 years and that has to be affecting the FBOs. Mr. Morton stated it is a nationwide issue. Mr. Rosborough stated that ILM has a budget that it has to maintain so we have to charge reasonable rates to our tenants. So if we we lower our rates to them, then we are taking away from the revenue stream into the airport and that has to be balanced out. Dr. Crane agreed with Dr. Roseman that he pulls up Foreflight for fuel prices when he flies and ILM is always the highest in the area which causes us to lose a huge amount of traffic. Dr. Crane suggested perhaps the airport give up a little bit of money, maybe we incentivize the FBOs in some way to sell more fuel, or for every increase we pay the FBOs a certain percent. Dr. Crane avenues. Mr. Lambeth stated he has been to Columbus County and has seen as many as 8 to 10 airplanes waiting to be fueled up but you can come to ILM and be fueled up immediately. PLANNING & DEVELOPMENT Nothing to report. OPERATIONS REPORT Using charts for illustration, Mr. Broughton reported total passengers handled, seats available and customs traffic for January. Mr. Broughton reported that due to bad weather in the month of January, 71 flights were cancelled, and of the 71 flights, 46 of those were last week during the ice storm. st Mr. Broughton updated the Authority on the USO survey which started on February 1 and stated that Joe Stanley with the VFW is working to get volunteers to help with that survey. The survey will run for two months to see how many military we have and if they will use the facility. th Mr. Rosborough reported that ILM will receive a special award on February 14 from the United Way for contributions and support of United Way. ILM will receive the Spirit of North Carolina award. This is the first time this award has been won in our region in many years. Mrs. Buffkin reported that our average donation was over $500 and that ILM has one of the largest per capita employee donations. Mr. Rosborough confi,that according to a Boeing survey, approximately 490,000 pilots will need to be hired worldwide over the next two (2) decades to provide continued commercial air service. Mr. Rosborough mentioned that he, Mr. Barber and Mrs. Wilsey met with Dr. Tim Brady, Dean of Aviation at Embry-Riddle Aeronautical University, Daytona Beach, Florida, to explore what can be done locally at CFCC with Embry-Riddle to come up with a viable plan to get people interested in becoming pilots. New Hanover County Airport Authority February 5, 2014 Page 6 Mr. Barber stated that he and Mr. Rosborough have a meeting scheduled with Dr. Ted Spring, President of CFCC, to talk about opportunities for a satellite facility with Embry-Riddle for pilot training or mechanics. Mr. Rosborough reported that the Small Community Air Service Development Grant was received, signed and returned and staff is out promoting that with air carriers. th . UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. ADJOURNMENT There being no further business to come before the Board, Mr. Lambeth MOVED, SECONDED by Mr. Perritt to adjourn. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Chairman Barber adjourned the meeting at 6:40 p.m. Prepared by: Respectfully Submitted: Rose M. Davis _______________________________ Dr. Jonathan S. Crane, Secretary Date of Approval: March 5, 2014