CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE

Transcription

1 CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE Minutes from the August 4, 2005 meeting Charlotte Douglas International, A/B Conference Room 8:00 a.m. Present Frances Harkey, Chair Randy Imler, Vice Chair Charles Baker Eric Montgomery Dr. Henry Nicholson Stan Campbell Diane Carter John Gregg Jeffrey Hay Staff Present TJ Orr, Aviation Director Jennifer Shouse, Staff Advisor Erika Helm Absent John Day 1. Call to Order Chair Frances Harkey called the meeting to order at 8:00 a.m. 2. Recognition of New Member Harkey recognizes the committee s new member, Eric Montgomery. Montgomery was appointed by Charlotte City Council and serves as one of the west-side seats. Montgomery is an attorney with Bank of America. 3. Approval of the July 7, 2005 Minutes The minutes were approved as written. 4. Business Agenda 1. Airport Concession Contract Clarification Action: A. Approve settlement agreement between the City and Host International, Inc. of Bethesda, MD regarding contract interpretation; and B. Approve an amendment to the City s agreement with Host that clarifies the contract terms. Background: The Contract: Host has a contract with the City to provide concessions at the Airport through June 30, Pursuant to the contract, Host must pay a portion of its profits to the City. The contract specifically excludes Disadvantaged Business Enterprise ( DBE ) subtenants from Host s profit sharing requirement. When the City first implemented profit sharing arrangements with Airport concessions, the only subtenants were DBEs. In the past few years, with the rise of branded concepts, Host has added a number of non-dbe subtenants at the Airport. A dispute has arisen between the City and Host about how to treat non-dbe subtenants for purposes of profit sharing. The Settlement Agreement: Under Host s interpretation of the contract, Host owes the City no additional monies under the profit sharing formula.

2 Under the City s interpretation of the contract, Host owes the City an estimated $906,000 of profit sharing revenue over the past four years. Host has agreed to settle the City s potential claims for additional profit sharing revenue through June 30, 2004 for $453,000. This equitable agreement will avoid the expense and uncertainty of litigation. The Amendment: Host has agreed to adopt the City s interpretation of the profit sharing requirements. The Amendment to the contract will clarify the profit sharing calculation and specify that the gross receipts and expenses of non-dbe subtenants are included in calculating the profit share paid to the City. The Airport estimates that the Amendment may result in additional revenue of approximately $225,000 annually. Disadvantaged Business Opportunity This Amendment does not affect Host s DBE participation commitment, which is 20%. Summary of Bids Non-applicable. Public Art Funding This is not an Eligible Project. Gregg: How did you arrive at the 50%? Orr: We wanted them to pay 100% and they want to pay zero. That s the short-smart answer. Montgomery: How long is Host s contract agreement? Orr: The current agreement expires in Carter: And this doesn t have anything to do with DBE participation? Orr: It has nothing to do with DBE participation. The DBE participation is 20% of the total gross sales. Motion: Carter Second: Montgomery 2. Daily Parking Deck Design Change Order Action: A. Approve a change order to an architectural design contract with LS3P Associates, LTD. of Charlotte in the amount of $838,500 including reimbursable expenses for design modifications for the new East Daily Parking Deck. B. Adopt a Budget Ordinance appropriating $1,000,000 from the Discretionary Fund Balance. Background: In November 2001 Council awarded a contract in to LS3P Associates of Charlotte, NC for a design study of a parking deck to be located in the Airport s Daily Parking Lot LS3P provided design services for both the recently constructed West Daily Parking Deck and the proposed East Daily Parking Deck. This contract will provide modifications to the design identified during construction of the West Daily Deck and to accommodate Federal Aviation Administration requirements.

3 This change order funds the contract ($729,500) and reimbursable expenses ($109,000). Small Business Opportunity Established SBE Goal: 3% Committed SBE Goal: 3% LS3P has committed 3% ($25,155) to the following SBE firm: Torrance Reprographics. Public Art Funding This is an Eligible Project; however, design costs are not subject to the 1% appropriation. Motion: Campbell Second: Carter 3. Concourse E Expansion Design Change Order Action: Background Approve a change order in the amount of $675,000 to LS3P Associates of Charlotte for additional design work to expand Concourse E from 26 to 34 gates. In November 1999, Council approved a contract with LS3P Associates to design the initial 21-gate phase of Concourse E. At that time, LS3P also developed concepts for the further expansion of Concourse E. This contract will fund the design of an eight-gate expansion of Concourse E and provide bid documents. This contract is 7.3% of the estimated construction cost of $8 million. Small Business Opportunity Established SBE Goal: 3% Committed SBE Goal: 3% LS3P has committed 3% ($20,250) to the following SBE firm: Torrance Reprographics. Public Art Funding This is an Eligible Project; however, design is not subject to the 1% appropriation. Motion: Gregg Second: Nicholson 4. Airport Intermodal Facility Consulting Contract Action A. Award a contract to Newton & Associates, Inc. not to exceed $150,000 for professional services in the development of the CLT Intermodal Freight Facility

4 Background: On July 25, 2005 Council was updated on the Airport s plans to develop a rail intermodal freight facility on Airport property. This contract would provide professional services and program management assistance in the development and implementation of the Intermodal Facility project, such as: o Preparing Scopes of Work and Requests for Proposals o Evaluating economic analyses, land use plans and cost estimates o Financial Analysis and Reporting o Participating in project development o Developing a financial plan o Assisting in negotiation regarding financial, construction and leasehold terms for the project o Counsel and advise the Aviation Director and his development team with respect to all aspects that concern, impact or involve the Airport. Small Business Opportunity Established SBE Goal: 0% Committed SBE Goal: TBD% No subcontracting is anticipated within this contract; however, Newton is certified as a SBE, a WBE and as a DBE. Its participation will be included in the Aviation Department s overall DBE achievement and the City s overall SBE utilization rate. Public Art Funding This is not an Eligible Project. Nicholson: How does this influence the airport? Does it do anything for our business? Orr: It is a benefit and bonus not so much for the airport business but for business in the community. Our goal is not just to grow the airport but to meet the needs of the entire community. Nicholson: The reason I ask that question is because I think it will downgrade the appearance of the airport and the runways. I am just wondering if that was considered when planning on putting a freightyard between two runways. Orr: Aesthetically? Nicholson: Yes. Orr: To some people, a freight yard might not be as pretty as grass, but it does generate a considerable amount of enterprise in the greater community. And given the choice of having that freight yard in uptown Charlotte, I think having it buried in the airport creates community benefits. Nicholson: I just bring this up because I read the article in the paper about this. I just think it hurts the appearance of the airport as a whole for people when they are arriving here. I understand the concept of being good neighbors, but I don t agree with this. Orr: Well I think it is more than being good neighbors; it is what the airport s role is in the community. Nicholson: Is this an extension or in relation to what we discussed at a previous meeting for what was going to Greensboro, Fed Ex? Orr: Somewhat similar, but different. Fed Ex is an airplane driven freight terminal and this is rail and truck driven. Carter: Tell me about the highway money. Orr: It is actually out of a Transportation Bill, which has a rail segment, highway segment, transit segment and an aviation segment. Gregg: What specifically would that money be used for? Orr: That money would be used for construction of the yard. Harkey: In looking at the drawing, I did not realize that the new runway was going to be so close to I Orr: Well, it is actually going to be closer than this picture indicates.

5 Campbell: Are there any safety issues with that? Orr: With respect to the runway? Campbell: Yes, if a plane were to come in and miss the runway. Orr: There are obvious safety implications anytime the airplane misses the runway. Campbell: But the area is currently a grassy field, but will now become an intermodal facility. Orr: That s true. But if you look at runway 18R/36L, it is surrounded by buildings. There is the general aviation area, the military and the fire station. Yes, it would be preferable to have grassy fields on all sides of the runways, but that would take up a lot of space. Orr made a presentation to Charlotte City Council on July 25, 2005 and shares with the AAC the same presentation and information. The presentation shows images and renderings of the proposed Intermodal Facility and third parallel runway, in addition to other future expansion projects. Upcoming projects include the relocation of Wallace Neel Road to allow for construction of the third parallel runway. An environmental impact statement has been done. The road is currently under design and will begin at Wilkinson Blvd., then cross the railroad on a new bridge and parallel with the railroad. It will then cross I-485 on the current Walker s Ferry Road Bridge and connect with Walkers Ferry Road. The airport recently completed the environmental impact study for the second phase of the road. The road will pick-up at the bridge and follow Walker s Ferry Road for a short distance and turn south on a green field route and hit Dixie River Road. There will also be a new road coming down from the Barwick (spelling?) Pappas Development to Garrison Road, this will ultimately become West Blvd. The relocation of West Blvd. is a project of the airport s and is currently under design, but not yet funded. With the relocation, West Blvd. will expand to the west and become a toll road. This is currently in the environmental process being run by the state. Additionly, back in 1975 the state had plans to build an airport entrance road to the terminal. The entrance is a project of the state s and is under design. With the new road, it will assist with traffic and will allow the airport to construct more parking facilities. The airport purchased the old Bi-Lo Building in January. This building will house airport maintenance divisions including Building Maintenance, Field Maintenance and Vehicle Maintenance, and eventually some Administration staff. The airport, along with the state, will acquire more land surrounding the facility to allow for development of the airport entrance road and more airport parking. The airport also has plans to build a parking deck by the maintenance facility and have it operate as a valet lot. This will allow for passengers to come right out Wilkinson Blvd., park in a covered deck, receive boarding passes through an electronic kiosk, check luggage and then take a shuttle to the terminal. The airport also plans to construct a deicing facility by Taxiway F. This will allow for airplanes to be deiced quickly in a central location. The facility is economical, effective and environmentally friendly. The airport will also build an 80,000 square foot facility for DHL in its cargo center. That contract was awarded last month. Future development plans include relocating the airport s rental car facilities from Rental Car Road to Wilkinson Blvd. This will allow for construction of an international terminal with 25 gates. Orr now shares information to the committee on the Intermodal Facility and third parallel runway. An additional parallel runway will allow the airport to conduct three independent approaches for arrivals and departures, which will automatically increase air service capacity by 33 percent. Currently, Denver International and Dallas /Fort Worth International are the only two airports in the country who have this capability. The airport currently has two parallels and one crosswind runway. The added runway will allow more efficient operations for the airlines. For passengers it means more on-time arrivals. The airport has already acquired the land needed for construction of the 9,000 foot runway. The estimated cost is $80 million, which the airport will fund through grants, passenger facility charges and bond money. Engineers and airport planners have recently made slight adjustments to their construction

6 plans. Originally, the new runway was 3,700 feet west of Runway 18R/36L, but the separation was increased to 4,300 feet to meet FAA guidelines. In 1995, the airport updated its Master Plan and the runway was planned at 3,700 feet based on future technology advancements and operational advancements within the FAA. These anticipated advancements would allow the FAA to land airplanes closer together. However, these advancements have not yet occurred and the position of the runway was increased to 4,300 feet. This will ensure qualifying for triple approaches, which is the real benefit of having a third parallel runway. There will be approximately 1,000 feet between the center of I-485 and the runway. The new Norfolk Southern Intermodal Facility will lie between the new parallel runway and Runway 18R/36L. This facility is possible because the main railroad line comes by the airport. The new facility will replace and double the capacity of the existing facility, which is located in uptown Charlotte. It is anticipated to cost $67 million and open in This joint venture between the airport and Norfolk Southern Railroad will bring all four modes of transportation together air, rail, sea and truck - in one location. This will provide tremendous benefits to distributors, who seek a central location for several modes of transportation and immediate access to interstates. Distribution is one the core industries in Charlotte. Charlotte s current Intermodal Facility handles 120,000 lifts a year. That number is expected to increase when the new facility opens at the airport. The development also is expected to generate more jobs and lure more distribution facilities to Charlotte. Carter: I really liked all the graphics you showed us. It really helps put everything into perspective. My question is when do you expect to begin all of this? Orr: With updating the Master Plan, this will allow us to meet with all the key players and determine funding. The funding is what s going to drive the construction and timeline. Montgomery: From a long term planning perspective, how far out do you anticipate the changes meeting the needs of the travelers? Orr: In my view, 50 years. However, I would point out that there is a lot of capacity capability on this site. Harkey: How will the trucks go in and out of the facility? Orr: The trucks can use I-485, which is to the left of the airport, and then there is Billy Graham on the right side, and West Blvd. will go in between the two as a four lane road. All the trucks from the rail facility will go out to the south and onto West Blvd. and then to I-485. What this means is all the trucks coming in or leaving the facility will never drive past a residence except on an interstate highway. One of the great benefits of this is it takes all these trucks out of uptown Charlotte which is a huge air quality issue and traffic issue. Imler: Will the current facility close? Orr: They will close the intermodal part of it. Motion: Carter Second: Montgomery 5. FAA Grant Acceptance Action: A. Adopt a resolution accepting a Federal Aviation Administration (FAA) Airport Improvement Program grant in the amount of $15,089,210 for various Airport projects. B. Adopt a Budget Ordinance appropriating $15,089,210 in FAA grant funds. C. Adopt a Budget Ordinance transferring $5,940,000 of 1999 Series D General Airport Revenue Bonds to the Debt Service Fund. D. Adopt a resolution allowing the Aviation Director to accept any Federal Aviation Administration (FAA) Airport Improvement Program grants that

7 Background: may become available before the end of the Federal Fiscal Year on September 30, Each year, the Airport qualifies for FAA entitlement funds based on passenger enplanements. The Airport s FY2005 entitlement funds ($15,089,210) will be used to reimburse the Airport for 75% of the costs associated with the following projects: Master Plan Land Acquisition Ramp E Design Work Ramp E Phase IV Construction Taxiway F Box Culvert Construction This action will also appropriate the grant funds for the following projects: Project Grant Amount Local Share Total Project Cost Master Plan Land Acquisition $5,941,553 $1,980,518 $7,922,071 Ramp E Design Work $ 206,475 $ 68,825 $ 275,300 Ramp E Phase IV Construction $7,328,681 $2,442,894 $9,771,575 Taxiway F Box Culvert Construction $1,612,500 $ 537,500 $2,150,000 Motion: Campbell Second: Gregg The local share funds for these projects came from General Airport Revenue Bond proceeds, which were appropriated in previous actions. On December 2, 1999, the City issued $88,805,000 in variable rate General Airport Revenue Bonds (Series D). Proceeds from these bonds funds the acquisition of land previously approved by Council on April 28, 1997 as part of the Airport s 1997 Master Plan. It is the intent of the City to redeem up to $60,000,000 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. Under the Federal legislation for the Airport Improvement Program, the FAA allocates a certain amount of discretionary funds for high priority airfield projects. The FAA has advised the Airport that additional funds may be available before the end of the Federal fiscal year. The second resolution will authorize the Aviation Director to accept any other grants if offered by the FAA on behalf of the City. 6. Professional Services for Terminal Planning and Architectural Services Action: Background: Award a Professional Services contract with Roy Johnson, AIA of Charlotte to provide planning and architectural services not to exceed $275,000. This contract will provide the professional services of Roy Johnson, Architect, to assist airport staff in planning and implementing airport terminal improvements.

8 Small Business Opportunity Established SBE Goal: TBD% Committed SBE Goal: TBD% Mr. Johnson is retired from Odell Associates where he served as a principal architect and has been involved with airport terminal development for approximately 30 years. The scope of his services include developing design concepts, negotiating contracts, reviewing plans, value engineering and master planning. His fee is $125 per hour, not to exceed $275,000. Public Art Funding This is not an Eligible Project, since professional services are not subject to the 1% appropriation Motion: Campbell Second: Baker 7. Property Transaction Action: Approve the following property acquisition. A. Project: FAR Part 150 Land Acquisition Owner(s): Charles Dunn & J. Vaughn Klutts Property Address: * Mulberry Church Road Property to be acquired:.68 acres Improvements: vacant land Purchase Price: $34,125 Remarks: The purchase price was determined by independent appraiser and was reviewed by a second appraiser. Each appraisal takes into consideration the specific quality and quantity of the land. The tax value is determined on a more generic basis and will be higher or lower for land/ house with certain attributes. Property is acquired per Federal Guidelines 49 CFR Part 24 of the Uniform Acquisition and Relocation Act of Acquisition costs are eligible for Federal Aviation Administration reimbursement. Zoned: I1 Use: vacant land Tax Value: $41,700 Tax Code: Gregg: What will this land be used for? Orr: Land redevelopment. Motion: Carter Second: Montgomery 5. Status Reports

9 1. Intermodal Facility and New Runway Topic was discussed during the Business Agenda. 2. East Daily Parking Deck Topic was discussed during the Business Agenda. 3. Security Checkpoints Orr: Our security checkpoints are staffed by the TSA and as you probably read in USA Today, we rated extremely well in getting people processed through the security checkpoint. TSA is an agency of the federal government. They are actually about to take away a lot of our screeners and assign them to other airports that did not rate as well. Another thing I wanted to mention is that we are going to be getting something called a puffer machine. It is a secondary detection device and a person stands in it and the machine puffs out air to determine if the person is any type of risk. 4. Online Company Store Beginning August 18, the department will launch an Airport Online Store, featuring apparel and products with the Charlotte Douglas International Airport logo. The Aviation Department is piggybacking on a current City contract with AddLogos of Concord for the service. AddLogos currently hosts and merchandises the City Store. During the first phase, access to the online store will be offered to Aviation Department employees only. Employees will access the store by visiting and can click on the link to the online store website. From there, employees can enter a password to access the site. Items can be purchased through the site via credit card. A catalog will be provided for those employees without internet access, and customers wanting to purchase items with cash or check may contact AddLogos directly. All Aviation employees will receive a 25% discount on merchandise, and items will be shipped to the Airport at no charge within two weeks of ordering. After six months, the department plans to promote the store to the various terminal tenants and their employees, and eventually provide access to all interested customers within a year. 6. Director s Report 1. Aviation Department Holds 10 th Annual Youth Day The Aviation Department held its 10th annual Youth Day on June 22nd Activities for the children included tours of the North Carolina Air National Guard, the CMPD Helicopter Hangar and Fire Station kids participated in this year s event WSOC featured the event in a 30-second spot during its 6 p.m. newscast 2. Wilson Air Center Wilson Air Center, the Airport s Fixed Base Operator (FBO), was recently named the No. 1 FBO in America by Aviation International News. This is the sixth consecutive year that Wilson has received this honor Wilson was also featured in a Charlotte Observer article 3. Airports Council International Every year, Airports Council International (ACI) ranks commercial airports in various categories CLT ranks 19 th in Passengers and16 th in Aircraft Operations 4. Airport Master Concessionaire Supports USO, Communities In Schools HMS Host, the Airport s master concessionaire, has teamed with Coca-Cola and the USO (United Service Organizations) to support the nation s troops through USO programs For every 32 oz. drink purchased at one of HMS Host s concessions, five cents of the purchase price will go to support US troops and their families worldwide

10 The promotion began in July and will continue through September Also, HMS Host participated in Dine Out For Kids, an event supporting Communities In Schools on Tuesday, June 21 Over 50 area restaurants, including airport restaurants Brookwood Farms BBQ, California Pizza Kitchen, Chili s, Fox Sky Box, Manchu Wok, Phillip s Famous Seafood, Sbarro, Starbucks, Stock Car Café and Tequileria, donated a portion of their sales to CIS 5. New K-9 In June, the Airport s newest Explosive Detection K-9 team reported for duty Officer Phillip Calo and Cinthy, a Belgian Malinois Officer Calo is a three-year veteran of the CLT Airport Police Force There are currently four K-9 Explosive Detection teams at CLT The teams are jointly funded by the Transportation Security Administration and the Airport 6. Exploring Post 747 Wraps Up Year Explorer Post 747 is sponsored by the Airport and is a program of Boy Scouts of America The Airport has sponsored the post since students participated this year Post Partners are the Aviation Department, Federal Aviation Administration (FAA), Transportation Security Administration (TSA), US Airways, North Carolina Air National Guard (NCANG), HMS Host and the Carolinas Historic Aviation Commission 7. Aviation Department Softball Team The department is sponsoring a recreational softball team in Mecklenburg County Parks and Recreation s men s fall softball league. The team will play on Tuesdays and Thursdays at Renaissance Park Meeting adjourned at 9:06 a.m. Distribution: Mayor & City Council Pam Syfert, City Manager Brenda Freeze, City Clerk M. Schuster, UNCC Library Al McAulay, Jr., Chamber Av. Committee Carroll Gray, Charlotte Chamber