RENO-TAHOE AIRPORT AUTHORITY COMMUNITY OUTREACH COMMITTEE BRIEF OF MINUTES February 18, 2016, 5:30 pm River Room COMMITTEE MEMBERS PRESENT: Jessica Sferrazza, Chair Jenifer Rose, Vice Chair Sandy Evans Hall Daniel Farahi Patrick Flynn Matthew Harris Marc Johnson Don Kornstein Michael Knox Rick LaMay Thomas Petersen Sharon Spangler Art Sperber Jaime Tibaduiza Aaron West Jennifer Cunningham, Committee Liaison Hillary Schieve, Committee Liaison ALSO PRESENT: Marily Mora, A.A.E., President/CEO Andy Wirth, Chairman of Board Bill Eck, Trustee Adam Mayberry, Trustee Brian Kulpin Tina Iftiger Trish Tucker Heidi Jared Stacie Huggins Jessica Baran Michael Russell COMMITTEE MEMBERS ABSENT/EXCUSED: Bebe Adams Glenn Carano Carol Chaplin Karl Hutter Jim Nadeau Owen Roberts Charlene Bybee, Committee Liaison Bob Lucey, Committee Liaison The Community Outreach Committee (COC) met on Thursday, February 18, 2016. I. Call to Order, Roll Call: Chair Jessica Sferrazza called the meeting to order at 5:41 PM. Community Outreach Committee members were welcomed by Chair Sferrazza and Vice Chair Jenifer Rose. Self-introductions of COC members and attendees were made.
II. Public Comment: There was no public comment. III.Approval of Meeting Minutes from January 14, 2016 The committee unanimously approved the minutes from Community Outreach Committee meeting of January 14, 2016. IV. New Business: Update on Key Issues Facing the Airport: A. Reno-Stead Airport A Master Developer Will Help Stead Reach New Heights Presented by Tina Iftiger, Vice President of Airport Economic Development Ms. Iftiger began by stating that in February 2015, the Airport Authority Board authorized a Request for Qualifications (RFQ) for a Master Land Developer at Reno-Stead Airport and during the next year, stakeholder meetings were held to engage the community and analyze development opportunities. In February 2016, the Board awarded the RFQ to Dermody Properties and Hillwood Investment Properties (DPHW). Dermody is a national developer of industrial and commercial properties with their corporate headquarters in Reno. Hillwood has more than 30 years experience in developing on airports across the country. The Phase 1 Ground Lease defines the lease terms for the first 90 acres to develop Gateway/Moya roadways and other improvements. Development at Reno-Stead Airport has the potential to increase the region s economic impact, through attracting new companies, creating jobs, improving the job/housing balance, and overall, to decrease airline operating costs at RNO while increasing air cargo and passenger demand. Brian Kulpin, Vice President of Marketing & Public Affairs, explained to the committee that staff is creating a PR program to present the development plan in the best way possible. Aaron West suggested partnering with the Economic Development Authority of Western Nevada (EDAWN) to communicate the benefits. However, staff said that until the new businesses are known, EDAWN cannot conduct an economic impact study to quantify the benefits. Board Chair Andy Wirth commented that master development can often be mischaracterized, and encouraged the members to stimulate dialogue on how to share this great news with the public. It was suggested that this topic be brought back before the committee after a 45 day period and get committee input on rolling this out to the community. Mayor Hillary Schieve informed COC members that she spoke at the February 2016 RTAA Board Meeting to give her support for this project. Members were reminded that no Airport funds have been spent on this project other than staff time and attorney fees. Chair Sferrazza advised University of Nevada President Marc Johnson that there would be no impact on the University property near the Reno-Stead Airport. Tom Peterson encouraged coordination with the Regional Transportation Commission. Art Sperber encouraged public meetings to get input. Mr. West gave the Airport kudos for their energy and efforts to collaborate with the stakeholders in the Page 2 of 5
Reno-Stead Airport Area, and said the dialogue had been amazing from the prebid to the RFQ process, and that the RTAA was a great partner. Rick LaMay encouraged the RTAA to maintain space for future general aviation hangars. Mike Russell, guest in attendance on behalf of Dermody Properties, said the process had been a very thoughtful endeavor with much community input and was happy they were now moving forward to get the project done. B. Customs and Border Protection An Update on International Air Service and U.S. Customs and Board Protection (CBP) at RNO. CEO Marily Mora advised that there has been intense work on CBP at RNO. She explained that CBP is the world s largest law enforcement organization with 60,000 employees. They maintain Ports of Entry and have operated at Reno- Tahoe International Airport since 1979. The existing facility was recently enhanced to accommodate the Volaris Guadalajara flight. Ms. Mora gave a chronology of CBP milestones, starting in February 2014 when Volaris met with the Airport and CBP to discuss possible service. Since the service began in December 2014, Volaris has reported that RNO is the best performing U.S. market. However, CBP wait times for primary processing is unacceptable, with an on average wait time of two hours. The average wait time for many U.S. gateway airports is only 21 minutes, with a peak wait time of 90 minutes. A key point Ms. Mora made to the COC members is that the Airport Authority is willing to help pay for supplemental CBP staff, in order to provide an acceptable level of customer service, but the CBP does not have a mechanism to accept these funds. Despite objections to the inordinately long processing times, Volaris has added a 3 rd weekly flight, demonstrating the strength of the RNO market and the airline s commitment to serve that demand in the future. The economic impact of three flights per week is estimated at $30 million per year. However, it has been made clear through discussions by CBP officials in Washington D.C., that they are focused on gateway airports such as Chicago and San Francisco. Chair Sferrazza asked staff for a template of a letter that COC members could send to the Nevada delegation. Mayor Schieve encouraged all members to write a letter to their delegation demanding support of better CBP processing in Reno. Board Chair Andy Wirth had three specific points to make. First, that the RTAA built the facility to CBP s specifications, so objecting to new flights because the facility is flawed is not valid because it was built to CBP specifications. Secondly, the RTAA is willing to pay for CBP staff and there needs to be a legislative solution to enable the Airport to help support staffing for new flights. Lastly, Chair Wirth insisted there is a qualitative element of bigotry that s been displayed by the local CBP federal agents. Chair Sferrazza asked for these points to be incorporated into a letter that COC members could sign. Mayor Schieve gave kudos to the Airport Board for their transparency and willingness to take a hard stand against the wrong doings taking place inside the CBP. Page 3 of 5
C. Raising the Region s Air Service IQ Community Outreach Campaign, Presented by Brian Kulpin, Vice President of Marketing and Public Affairs. Mr. Kulpin said the Airport is embarking on an advertising campaign to educate our catchment area about RNO s great air service. Recent polls have shown that too many passengers do not realize what non-stop destinations the Airport offers. The Airport s campaign will encourage people to fly and support our existing air service. The most recent effort to locally promote air service was 13 years ago. Southwest Airlines serves 46% of total flights at Reno-Tahoe International Airport. While this is great service, it means that some locals may not consider looking at other airline sites to book flights. The opposite is true if using a travel booking website such as Travelocity, because Southwest does not participate in those airline search sites, thus leaving out almost half of a traveler s options. RNO air carriers, with the exception of Southwest, do not typically advertise locally. Improving the community knowledge of existing air carriers and nonstop destinations will help fill airline seats. It is proposed that the RTAA spend $130,000 to support a multi-faceted campaign that would utilize various platforms such as TV, radio, social media, outdoor boards, in-terminal advertising, and print. It will complement the Airport s outreach efforts with business, travel, and community leaders. The Airport will invite new business to get onboard and help the Airport with measurement and communicating new air service. Chair Sferrazza suggested that the COC members be included in selecting the company that conducts the campaign. She suggested that the top two companies be presented to the COC and that the COC make a recommendation to the Board on the agency to be selected from the Request for Qualifications. Tom Petersen, with KOLO, advised that $130K is not enough for such a campaign, particularly during a major election year. Co-Chair Jenifer Rose said that the budget is too low for a campaign of this size. Ms. Mora advised that, based on this feedback from the committee, she would recommend a re-vamp of the budget being planned. Mr. Kulpin discussed the need to change the traveler s behavior to drive versus fly, and advertise to get them thinking about the option to fly instead of drive. Marc Johnson asked if the Airport partners with the Reno-Sparks Convention and Visitors Authority (RSCVA), to which Mayor Schieve and Jennifer Cunningham replied with an emphatic yes. Ms. Mora explained the Airport has a great working relationship with the RSCVA. Don Kornstein expressed confusion over the need to advertise to locals. Mr. Kulpin shared a recent example of when the UNR Men s Basketball team had difficulty travelling to Salt Lake City due to flight cancellations on Southwest Airlines connecting through Las Vegas. Mr. Kulpin advised that had the team Page 4 of 5
known, or consulted the Airport, Delta Airlines could have been offered as a nonstop option to Salt Lake City, proving that even frequent travelers could be better educated on the vast number of non-stop and one-stop flights offered at Reno- Tahoe International Airport. Chair Wirth offered his support of the campaign and explained the intent to reach out to the catchment area, beyond Reno-Sparks-Carson City. Mayor Schieve also offered her support, stating that the city officials sometimes drive to Oakland for work purposes, and now must think about taking the nonstop Oakland flight, starting in June. Jennifer Cunningham, Interim Director at the RSCVA, said the idea is long overdue. She recommended hiring a media company to have a media plan that would saturate the market. Ms. Mora shared that JetBlue is really a case of if you bring it, people will fly it, and that she has encountered many in the community who are happy to take a weekend flight to New York City, just because they can. Chair Sferrazza inquired as to how soon the campaign can start. Mr. Peterson pointed out that the political advertising window runs from the end of April to early September. Staff responded that funds should be available for advertising solicitation in July of this year. Daniel Farahi suggested advertising to the passengers in the terminal, since they are already flying. Jessica Baran, a guest at the meeting from the Grand Sierra Resort, shared that, in her opinion, the biggest obstacle when booking conventions is how to get people here. In addition to the Air Service 101 meetings staff is holding to educate people, the Innovata air service tool is available from the Airport website. V. General Committee Comments, Questions & Items for Future Committee Meetings: In the interest of time, there was little discussion on this item, other than to move the cargo update, which had originally been planned for February, to the next meeting. VI. Public Comment: There was no public comment. VII. Adjournment: The meeting was adjourned at 7:25 p.m. JS/hj/cj Page 5 of 5