CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE

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1 CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE Minutes from the August 3, 2006 meeting Charlotte Douglas International, A/B Conference Room 8:00 a.m. Present Stan Campell, Chair Andrew Riolo, Vice-Chair Charles Baker Dr. Henry Nicholson Diane Carter Elloree Erwin Paul Korry John Warlick Stanley Vaughan Jeff Hay Staff Present TJ Orr Jennifer Long Erika Helm Absent Randy Imler 1. Call to Order Chair Stan Campbell called the meeting to order at 8:00 a.m. 2. Approval of the July 6, 2006 Minutes The minutes were approved as written. 3. Recognition of Volunteers Long: We have an amazing volunteer program here at the airport and we want to recognize several of those volunteers this morning. I want to recap to you about the airport s Volunteer Program. The program began a little over a year ago with about 20 volunteers, and it has grown and more than doubled in size with about 50 volunteers to date. Those volunteers are positioned in specific/high-traffic areas of the terminal and they are here to meet, greet and assist passengers. The most common questions they are usually asked are directional questions that help passengers find their gate locations or the nearest restroom. In addition to wayfinding and navigating the facility, they create a first impression of the airport and the City of Charlotte. With most of our passengers being those that are connecting, the airport is really the only place they may get to see and experience in the city. Today, we have invited seven of our volunteers who happen to be what we call charter members as they have been with the program since its inception. We have invited them today because they are being honored with the Presidential Volunteer Service Award. Presidents Bush s Volunteer Service Award recognizes individuals who have made a commitment to their community and have provided volunteer service. It can be awarded to individuals, families or groups that have provided outstanding volunteer service over the course of a 12-month period. It is categorized in three levels based off hours volunteered. The first level is gold with 500 hours or more, silver is hours and then bronze is hours. All recipients will receive the official Presidential Service Award pin, a letter from the President, another letter from the President s Council, a framed certificate and a letter from Mayor McCrory. Volunteers being recognized today with the Presidential Volunteer Service Award are: 1. Laura Lassiter: Silver, hours of service 2. Robert Peek: Bronze, hours of service 3. Peter Sherman: Bronze, hours of service 4. Ann Smolias: Bronze, hours of service 5. Ronald Burns: Bronze, hours of service 6. Margaret Burns: Bronze, hours of service 7. Jean Tulp: Bronze, hours of service

2 4. Business Agenda 1. Airport Terrazzo Maintenance Contract Approve a three (3) year contract to Stone Restoration of America of Charlotte, NC in the total amount of $1,107,425 for cleaning, repair and maintenance of terrazzo flooring. The contractor will provide specialized trained personnel for continuous cleaning and maintenance, and necessary repairs of approximately 125,000 sq.ft. of terrazzo in the Airport terminal. The contractor will be paid a fixed monthly fee. The City may terminate the contract for any or no reason with a 10-day written notice. Small Business Opportunity Established SBE Goal: 0 % Committed SBE Goal: 0% Pursuant to Section 5 of the SBO Program, no SBO utilization goal was set for this contract because subcontracting is not anticipated. Summary of Bids Stone Restoration of America $1,107,425 Hertron International No Bid Mid America Metals No Bid Solid Rock No Bid Gali Service Industries No Bid Rick Belsole No Bid Korry: Is there any reason why the other companies never submitted any bids? Orr: No, we don t know why. I would suspect that maybe once they realized the scope of the job that they didn t feel they would be competitive. Hertron has done previous work for us as well as Mid America Metals. Gali is the company that provides our janitorial staff. Motion: Vaughan Second: Korry 2. Airport Water Main Extension Approve a contract with Allied Resources of Huntersville, NC in the amount of $343, for construction of an additional water main to the Airport. CMUD is constructing a new water main through west Charlotte. This contract is for the construction of a connection from the Airport to the new water main, to add flow capacity at the Airport. Small Business Enterprise Established SBE Goal: 0 % Committed SBE Goal: 0% Pursuant to Section 5 of the SBO Program, no SBO utilization goal was set for this contract because subcontracting is not anticipated.

3 Summary of Bids Allied Resources $343, Gilbert Engineering $373, Sealand Contractors $404, State Utility $407, Triangle Grading and Paving $417, Dakota Contracting $520, Dellinger, Inc $860, Korry: With Dellinger s bid almost three times the amount of Allied Resources, I am sure they all got the same information on the bid. Orr: Yes, they did. In this case, the five lowest bids were all fairly close. If contractors have plenty of work sometimes they ll put in a high number and if they get the job they sub it to someone else. Motion: Erwin Second: Nicholson 3. Airport Concourse E Building Phase V Approve a contract with Edison Foard of Charlotte, NC in the amount of $9,038, for construction of six additional gates on E-Concourse. This contract provides for the construction of six additional gates on Concourse E. Summary of Bids Hendrick Construction $5,339, Withdrew bid due to clerical error Edison Foard $9,038, Southside Constructors $9,223, Small Business Enterprise Established SBE Goal: 10% Committed SBE Goal: 8.5 Edison Foard did not meet the established SBE goal, however, they did meet the Good Faith Efforts. Public Art This is an Eligible Project. One percent of the contract will be appropriated to the Public Art fund. Orr: We had three bids and all three of these contractors have worked at the airport before. The low bid you will see is very low by $4 million. Under state law, they can withdrawal their bid within 48 hours if they can prove that they made a clerical error. They showed us that. There bid was actually supposed to be $9,339,843. Like a lot of contractors, they called the final bid number in to someone at the last minute and they fill-out the bid form and it gets sealed up, and by mistake, they wrote down a five instead of a nine. Therefore they withdrew their bid and we are asking to award to the next low bid. That bid is considerably higher than we had hoped and that is due to the increase in the cost of concrete and steel. Riolo: Will aircraft park on both the east and west side. Orr: Yes. Riolo: So up in the northeast corner, is there room for an airplane to go south and north?

4 Orr: It will be dual-taxi and Class III. A lot of that is driven by the type of planes. This concourse extension will be 50 gates based on the 50-seat RJ s. If indeed the planes that the carriers operate are the 100-seat ERJ-90s, which are actually bigger than a 737, then there won t be 50 airplanes parked out there. Carter: I was just curious how much higher the construction costs where than last time? Orr: On the range of 30%. Korry: Do you have an estimated completion date? Orr: About 10 months. In the meantime we will build a wooden-covered walkway out on each side of the construction area so that we don t lose any aircraft parking places. Korry: The new jet that US Airway s acquired, the 85-seaters, will they be able to use Concourse E? Orr: Actually, these E gates can accommodate almost any airplane short of an Airbus, but it can accommodate an Airbus if you ground board. The gates themselves and the ramp, fueling and jet ways will work on any airplane; it s just the amount of space they take up on the ramp that s limited. US Airways is acquiring the 100-seat Embraer 190s and the 85-seat Embraer 170s. Motion: Korry Second: Vaughan 4. FAA Grant Acceptance A. Adopt a resolution accepting Federal Aviation Administration (FAA) Airport Improvement Program grants in the amount of $9,506,664 for various Airport projects. B. Adopt a Budget Ordinance appropriating $9,506,664 in FAA grant funds and $106,250 in Airport Discretionary Funds. C. Adopt a Budget Ordinance transferring $3,840,000 of 1999 Series D General Airport Revenue Bonds to the Debt Service Fund. Each year, the Airport qualifies for FAA entitlement funds based on passenger enplanements. The Airport s FY2006 entitlement funds ($8,381,664) will be used to reimburse the Airport for 75% of the costs associated with the following projects: Master Plan Land Acquisition Obstacle Free Area Clearing The local share funds for Master Plan Land Acquisition and Ramp E projects came from General Airport Revenue Bond proceeds, which were appropriated in previous actions. The local funds for the Obstacle Free Area Clearing will be appropriated from the Airport Discretionary Fund Balance. Under the Federal legislation for the Airport Improvement Program, the FAA allocates a certain amount of discretionary funds for high priority airfield projects. The Airport s FY2006 discretionary funds ($1,125,000) will be used to reimburse the Airport for 75% of the costs associated with the following projects: New ARFF Facility On December 2, 1999, the City issued $88,805,000 in variable rate General Airport Revenue Bonds (Series D). Proceeds from these bonds fund the acquisition of land previously approved by Council on April 28, 1997 as part of the Airport s 1997 Master Plan.

5 It is the intent of the City to redeem up to $3,840,000 of these bonds upon the receipt of Federal Grants. Action C is needed to transfer Bond Funds to the Debt Service Fund to redeem a portion of the outstanding debt. Carter: Was the $3.8 million just transactional costs related to the bonds? Orr: The $3.8 million is the federal share of a little over $5 million of costs. Our 25% share will remain in the fund that is funded by the variable rate bonds. Riolo: Explain the 50% share. Orr: Our entitlement would be about $15 million this year, but because we impose the Passenger Facility Charge (PFC) you give-up half of your entitlements back to the FAA. Motion: Carter Second: Erwin 5. FAA Reimbursable Agreements A. Adopt resolution authorizing Aviation Director to execute two reimbursable agreements with the Federal Aviation Administration (FAA) for the funding, construction and installation of airfield navigational aids (NAVAIDS) at Charlotte Douglas International Airport. B. Adopt budget ordinance appropriating $5,972,545 from Airport Discretionary Balance to fund City s obligation to purchase NAVAIDS from the FAA, to be repaid from future FAA funds and Airport Revenue Bond or other available permanent financing. Charlotte Douglas International Airport is in the design stage of the development of the third parallel runway at the Airport. Presently scheduled to open in the summer of 2009, the new runway will allow triple simultaneous landings at the Airport, greatly expanding runway capacity and reducing operational delays for the air carriers serving the Airport. The current cost estimate for constructing the runway is $165 million, not including land costs. The Airport has requested, and expects, the FAA to fund 75% of the cost. The balance will be funded with Airport Revenue Bond proceeds. An essential component of the new runway will be electronic systems (referred to as NAVAIDS) installed at the Airport to assist pilots in navigating to and from the Airport. Because of the complexity of these systems and the critical importance of the role they play in operational safety of aircraft, the Airport wishes the FAA to procure and install the NAVAIDS, and to take over their maintenance and operation when the runway becomes operational. To achieve this, the City must approve two Reimbursable Agreements with the FAA. Procurement of NAVAIDS from the federal government without competitive bidding is legal under state bidding statutes, because the federal government is the sole source.

6 Agreement Number Subject Amount SO P NAVAIDS Installation and Engineering $1,056,157 SO P NAVAIDS Procurement $4,916,388 The Reimbursable Agreements have the following provisions: o The City will pay to the FAA $5,972,545 on delivery of the executed Reimbursable Agreements; o The FAA will provide technical advice and consultation to the Airport s airfield engineers on the location and design of the NAVAIDS; o The FAA will procure the NAVAIDS equipment and store it in a secure location at the Airport until ready for installation; o The FAA will install the NAVAIDS o After installation, the City will transfer ownership and operational and maintenance obligations for NAVAIDS over to the FAA; and o After the transfer, the Airport will have no responsibility for the NAVAIDS. Concurrently, we are requesting Council to appropriate $5,972,545 from the Airport Discretionary Fund Balance to temporarily fund this obligation. This amount will be refunded to the Airport Fund Balance from FAA funds and bond proceeds as they become available. Disadvantaged Business Enterprise DBE Goal: 0% DBE Participation: 0% No contract-specific DBE goal is required for this contract, and the contract does not lend itself to participation goals. Motion: Korry Second: Vaughan 6. Airport Painting Contract Approve a contract to the lowest responsive bidder for painting services at the Airport. This contract will provide labor for painting airport-wide. The Airport provides the materials, equipment and paint. Small Business Opportunity Established SBE Subcontractor Goal: 0% Committed SBE Subcontractor Goal: 0% Pursuant to Section 5 of the SBO Program, no SBO goal was set for this contract because there are no sub-contracting elements in the scope of work. Summary of Bids: Bids will be received on August 9, 2006 Baker: What is some of the things they paint? Orr: Basically everything that has paint on it such as walls, columns, buildings inside and out. They will paint everything with the exception of roadway markings.

7 Motion: Vaughan Second: Korry 7. Airport Daily Parking Lot Reconstruction Approve a contract with the lowest responsive bidder for reconstruction of a portion of the Daily Surface Lot. This contract provides for reconfiguring and repaving a portion of the Airport s East Daily Lot to accommodate traffic to and from the two new parking decks. Small Business Opportunity Established SBE Goal: 7% Committed SBE Goal: 0% Summary of Bids: Bids will be received on August 17, 2006 Korry: What s the net gain or loss on spaces in doing this reconstruction? Orr: I believe on the range of 10 to 15 spaces, but might be more due to the shuttle bus route. Korry: Do you anticipate in the future us putting in elevated parking decks in the current surface lots? Orr: Yes. At some point the FAA Control Tower is going to relocate because it is too low in its current location and needs to be moved to the center of the airfield. The hourly decks were economically constructed and they aren t large enough. They are inclined-plate decks which make the search pattern for spaces difficult and make it difficult to remember what level you are on. What I anticipate doing in the future is tearing down the Hourly Decks one at a time and rebuilding them with a much bigger deck and taller. At the same time, we would take off the front of the terminal building, build it out, and then close-up the down escalators that are at the checkpoints which allows the checkpoints to be moved forward and out of the atrium. We would then also expand the curbsides. All of this will allow for the creation of an airport hotel and an international terminal and a regional terminal. Korry: These projects are based around the relocation of the tower? When might that happen? Orr: When the FAA decides to do it because it will cost about $20,000,000, but we could do all of that without the tower being moved. Riolo: How many drive-up lanes would that give us in front of the terminal? Orr: Probably four or five for the upper level and probably eight on the lower level. Riolo: Then would we increase the ramp as you go up to the curbside because that seems like where the congestion begins to occur? Orr: The reason there is congestion in that area is because once the person gets to the certain point where they can see the first set of doors, they then stop right there and it creates a traffic back-up. Vaughan: What is the timeframe for this? Orr: That was a seven-year plan before the airline industry began its downfall in The airline industry is beginning to get better, but with the economy and price of fuel, it is hard to tell how much better it really is. We build no project until we have funding. We can build a piece at a time. That s why we started with a 325,000 square foot terminal and now have a 1.8 million square foot terminal. It all depends on the economy and the airline industry. It could be anywhere from five or six years to thirty or forty years, or even never. In my opinion, there is enough room on the current site to accommodate air traffic for the next 50 years. Motion: Korry Second: Erwin

8 8. Runway Safety Area Improvements Approve a contract with Kimley-Horn & Associates, Inc. of Charlotte, NC in the amount of $115,140 to conduct a feasibility study for improving the Runway Safety Area for Runway 18L. Runway 18L/36R is one of the original runways at Charlotte Douglas International Airport. Current Federal Aviation Administration (FAA) standards require that runways have a safety area of 1,000 feet off the ends of the runway to provide an area for aircraft to stop without hitting obstructions if it were to run off the end of the runway. The safety area for the end of Runway 18L is 486 feet, which does not meet current FAA standards. In August 2005, the Airport accepted an FAA grant in the amount of $4,875,000 for the design and installation of an Engineered Material Arresting System (EMAS) for the overrun of Runway 18L. In October 2005, the Airport received qualifications from interested engineering firms for the design of safety area improvements Small Business Enterprise Established DBE Goal: 10% Committed DBE Goal: 8.7% Summary of Bids: N/A Motion: Carter Second: Nicholson 9. United States Post Office Lease at Airport Approve an Amended and Restated Lease for the United States Post Office Air Mail Center at the Airport. Council originally approved a lease agreement between the City and the United States Post Office ( Post Office ) on July 14, 1986 for an Air Mail Center located at the Airport. The agreement provided for an initial term of ten years, renewable at the Post Office s option for four additional five-year terms. The Post Office wishes to exercise its third option to renew the lease, pursuant to the original agreement, from 2006 until The original agreement provided that the rate for the current renewal period would be set at fair market value. Based upon an appraisal by the Post Office and on the experience of the Airport staff, the fair market value has been determined to have increased to $71,384 annually. The Post Office also wishes to add a new provision allowing them to terminate the lease early. The Post Office paid to build the facility they now occupy; however, title will vest in the City upon expiration or termination of the lease.

9 The proposed Amended and Restated Agreement and Lease will: 1. update the lease with terms and conditions that are now standard for airport tenants; and 2. accommodate the Post Office s request for a termination provision; and 3. set the renewal period lease rate at $71,384 annually. Small Business Opportunity Pursuant to Paragraph 2.14 of the SBO Program, the Program does not apply to leases in which the City is the landlord. Motion: Vaughan Second: Erwin 5. Status Reports 1. Intermodal Facility The committee requested more information on the intermodal facility during the July meeting. Jack Christine, Airport Planner, shares a short video with the committee that identifies the locations of the proposed third parallel runway and the intermodal facility. Orr: Our modified Record of Decision (ROD) was signed yesterday by the FAA, which means as far as the FAA is concerned, we have the green light to start building the runway and get funding for the runway. We are moving forward immediately with the FAA to get a letter of intent. That is an obligation of the FAA to give us funds in future years based on a schedule towards funding this project. With that in hand, we can then issue bonds because we have a dedicated flow of revenue to repay those bonds. We will also relocate Wallace Neel Road to allow for the new runway, and we will start that at Wilkinson Boulevard and cross the railroad on a new bridge. West Boulevard will also be relocated and extended to cross the river on a toll bridge. We don t have enough funds to build all of West Boulevard as a fourlane road right now, but we have got a grant from the State of somewhere around $1.7 million and we have $4 million from the City s 1998 road bonds. Riolo: I believe last month we approved a feasibility study for the intermodal facility, do you know when that will be completed? Orr: The feasibility study has already been completed. What you approved was the transferring of some funds that paid for that study. Riolo: So the study that we have says that with this railroad being so close to the runway that there will be no interference with the navigational aids or lighting? Orr: That is the FAA s call. The FAA says there is no interference because the rail yard is down below those safety areas. There were two feasibility studies. One was an engineering study that laid out the profile and plans that assured it would work. The other study was an economic impact. The study said this facility would generate a $7 billion impact in the local economy over 20 years. 2. USO Orr: We have been working with the USO for some time to locate a facility here for them. Back when British Airways served here, they wanted a first-class club for their passengers. We did not have any space on the concourse, so we rented them space down the hall. The spent about $700,000 upfitting that space and it is very nice. We have agreed to lease part of that space to USO, rent free. Their sponsors include General Dynamics, Best Buy, Lowe s and Coke. We have had the FAA approve this because we are required by the FAA to use our best efforts to make the airport self-sustaining, and we are also prohibited by federal law to give any space away. The USO will open next month.

10 3. Public Hearing for Re-evaluated EIS Orr: We held this public hearing on July 6. There were not a lot of people there. We have responded to all the questions that were asked and the FAA has issued the modified ROD. 4. JetBlue Airways JetBlue started service on July 12 with four flights to JFK Airport in New York. From there, they have service to 30 destinations. The flights are on the new Embraer Director s Report 1. Airport Flyers Complete Successful Season The Airport Flyers kicked off their season on April 4 Airport has two teams (men s and co-ed) that play in the Mecklenburg s Parks and Recreation s league This is the second year for the men s team and the first year for the co-ed team The teams, formed by interested Aviation Department employees, are part of the department s initiative to provide and promote healthy lifestyle programs Meeting adjourned at 9:00 a.m. Distribution: Mayor & City Council Pam Syfert, City Manager Brenda Freeze, City Clerk Jeanne Peek, City Boards and Commissions Clerk Ronnie Bryant, President/CEO, Charlotte Regional Partnership M. Schuster, UNCC Library Art Fields, Chamber Av. Committee Bob Morgan, Charlotte Chamber

CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE

CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE Minutes from the November 3, 2005 meeting Charlotte Douglas International, A/B Conference Room 8:00 a.m. Present Randy Imler, Vice Chair