Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR PUBLIC MEETING CALL TO ORDER The met on Wednesday,, at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Chairman Perritt called the meeting to order at 5:01 p.m. Airport Authority members present were John Perritt, Chairman; Jonathan Crane, Vice- Chairman; and Tom Barber, Secretary; and newly appointed Authority members Donna Girardot, Dan Hickman and Thomas Wolfe. Also present were Jon Rosborough, Airport Director; Julie Wilsey, Deputy Airport Director; Jim Morton, Finance Director; Gary Broughton, Operations Director; Whitney Prease, Facilities Director; Rose Davis, Executive Assistant; Wanda Copley, New Hanover County Attorney; and Steve Bright and Amy McLane, Talbert & Bright, Inc. Airport Authority member Carter Lambeth was absent. Guests present included Teresa Elmore, Interim Clerk to the County Commissioners; Brian Wilson and Travis Pence, The Wilson Group; Chris Brown, WWAY; Amara Omeokwe, TWC News; Ben Powell, WECT; Tom Goodwin, JDI, Inc.; James Bodnar, American Airlines; and Hal Reichardt. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Public Meeting on September 3, 2014. Dr. Crane MOVED, SECONDED by Mr. Barber, to approve the minutes of the September 3, 2014 Regular Public Meeting as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Lambeth was absent and new members did not vote. SWEARING-IN OF NEW BOARD MEMBERS Chairman Perritt turned the meeting over to Ms. Elmore to administer the Oaths of Office to new Airport Authority members Donna Girardot, Dan Hickman and Thomas Wolfe. Chairman Perritt further introduced and welcomed the new Authority members. PUBLIC COMMENTS None. Chairman Perritt addressed the recent issue involving the American and Delta flights from Charlotte and Atlanta that were diverted recently. Mrs. Wilsey read the official statement from the FAA which was received from their Communications Officer, Kathleen Bergen, as follows: The Federal Aviation Administration review determined that an Operations Control Center inadvertently deactivated the instrument landing system on RWY 6-24 at Wilmington International Airport in North Carolina one hour earlier than planned on September 24 th. The FAA has taken steps to ensure that future shutdowns occur on schedule by reviewing procedures for turning off equipment remotely and by requiring a team leader on duty to approve all remote equipment
Page 2 deactivations. We are also sharing lessons learned with all employees who handle remote system shutdowns. Chairman Perritt stated that it was as ILM s internal investigation revealed. The incident was not related to ILM s control of the lights or closing the airport, rather it was that the FAA misread a time and shut the instrument landing system off so that the planes could not land in the weather conditions when they arrived at ILM. TERMINAL CAPACITY STUDY PRESENTATION Chairman Perritt turned the floor over to Talbert & Bright for their Terminal Capacity Study presentation. Mrs. Wilsey provided a review for new Authority members indicating this is the final presentation to the Authority. This process kicked off in July 2013 and consisted of a study team including Authority members, staff and several tenants. There were 16 meetings, 4 working papers distributed and 1 other Authority meeting presentation. Mrs. Wilsey stated the purpose for the study was to plan for growth in the area and be able to accommodate air travel needs because the airport is an economic engine and connects this region to the world. Mrs. Wilsey pointed out this is the final presentation and it will identify the final concept selected and approximate costs as well. Steve Bright, Talbert & Bright, Inc., introduced the project team members: Amy McLane, Project Manager for TBI; and Brian Wilson and Travis Pence, aviation architects with The Wilson Group. Mr. Bright reminded the Authority that the current terminal building was designed in the mid-1980s and a lot has changed in that 25 year period regarding how airports and airlines operate. What worked well in the 80 s and 90 s doesn t work as well in a post-9/11 environment. Mr. Bright stated that there are portions of this terminal building that are reaching capacity and major equipment systems are reaching the end of their useful life. One of the purposes of this study is to figure out what has to be done to this terminal to be able to serve the community for the next 25 years and still maintain a high level of customer service. Mrs. McLane provided an overview for the new Authority members; summarized the changes in the airline industry, TSA, FAA and the community; and identified current pinch points during peak hours in the terminal, parking and airside areas. Mrs. McLane showed slides of the existing terminal and airside facilities, including the terminal gates and aircraft parking positions and the taxiways and apron area. Mrs. McLane indicated the study team looked at short, medium and long term needs and is providing short, medium and long term phasing for the terminal improvements, with long term being approximately 20-25 years. Mr. Pence began his presentation with a slide illustrating the long term final plan before breaking it down into Phases. Phase I or the Base Bid would move and expand the security checkpoint to 3 bays, renovate the existing part of the building and create a new concourse area connecting to the current hold area. The cost for this phase, depending on the alternate elements included, would be between $21.5M and $40.1M.
Page 3 Phase II would include renovation of the existing hold room and bathrooms and expand the parking. In response to Mr. Hickman s question regarding the cost of Phase II, Mrs. McLane clarified Phase II cost was $4.2M. Phase III consists of a new hold room expansion, finishing renovation of the ticket lobby and baggage claim area and further parking expansion. The cost for the final build-out would be between $47.2M and $65.8M. Mrs. McLane stated the total cost for the entire program over a 20 year period would be $87M. Mrs. McLane further stated that the next step in the process is to work with staff to develop a financing plan; to work with the FAA to obtain environmental clearance on the project; and then begin design for the first phase of the work. Mr. Pence shared additional renderings of the expansion project. In response to Mr. Barber s inquiry, Mrs. McLane clarified that the first parking expansion is expected in the first 5-8 years with a 2 level deck on the east side to accommodate the rental cars and short term parking. Mr. Bright explained to the Authority that the statistics used for the study were historical passenger trends at ILM provided by the FAA and the population in the area. Mr. Bright stated that the FAA forecasts will be changed in 2014 so those final numbers are unknown. This study is not driven by a year, it is driven by passenger enplanements so the slower the growth, the longer ILM can wait to implement these changes. In response to Chairman Perritt s question, Mr. Bright indicated the first critical pinch points include the security check point, hold room, ticketing and baggage areas that would be addressed in Phase I. Mr. Bright pointed out that if one of these programs was started today it would be at least 4 years before the construction could be completed so there is a long lead time. Mr. Bright stated the wise thing to do would be to get the financing resolved, the environmental checklists completed with the FAA and get the design ready in order to shorten that time frame by half. In response to Dr. Crane s question regarding funding, Mr. Bright responded the amounts that would be Federal, State or Local funds would be worked out in the financing program. Mr. Bright stated the problem is that ILM is doing so well that it has out grown one of the sources that are generally used for terminal expansion. ILM has grown from a non-hub to a small hub airport so we are missing the opportunity to get at least $20M from that source. Mr. Barber asked for clarification as to the next steps for the Authority and Mr. Bright indicated this meeting was an informational meeting and that the preferred alternative has already been selected so the next steps would be to finish the report and submit the final report to the Authority, staff and the FAA for comments and final approval before going on to the next step of looking at financing options. Mrs. Girardot initiated a discussion regarding energy certification with the open areas of the proposed construction. SPECIAL EVENTS Mr. Broughton updated the Authority on the following upcoming events: Aviation Day and 5K Run on the Runway, October 11 th and the Mass Casualty Training Exercise, October 18 th.
Page 4 FINANCE REPORT Mr. Morton reviewed ILM s August 2014 financials, cash report and summary of accounts. Mr. Morton reported that the auditors are off-site and working to conclude the audit for submittal to the County. At Mr. Lambeth s request, Mr. Morton updated the Authority on ILM s revenue trends for FY2015 with a slide and handout. Mr. Morton recommended approval of a one year lease of the John Morris Road hangar to Cape Fear Volleyball Association (CFVA) at $4,000/month. Mr. Barber MOVED, SECONDED by Mr. Hickman to approve the lease to Cape Fear Volleyball Association (CFVA). After some discussion, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Lambeth was absent. FACILITIES Mr. Prease recommended the selection of two consultant teams for on-call architectural services for the ILM Business Park. The two recommended teams are LS3P and Rees Architects. Staff is not committing to any contract or financial obligation with either at this time. Mr. Barber MOVED, SECONDED by Mr. Hickman to approve the selection of LS3P and Rees Architects for on-call architectural services. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Lambeth was absent. Mr. Prease reported that the RWY 17-35 rehabilitation project was completed on September 27 th and should come in under budget. The final numbers are pending. Mrs. McLane stated the contractor is very proud of the job and has applied for a national airport paving award. Chairman Perritt commented that some of ILM s staff was actually on the runway at night before the paving contractors left making sure that all the stripes were in the right place and reflectivity was good because they weren t going to let the paving group move out until the RWY was pristine. Chairman Perritt suggested that staff get the aerial pictures redone to show the new runway and reminded everyone that they have the opportunity on October 11 th to walk or run on a newly paved and painted runway. Mr. Prease shared an aerial slide of the proposed Observation Area showing where the benches, tables and the 25 x 25 covered shelter area would be located. Mr. Prease stated the 7460 has been submitted to the FAA and that the costs for this project as proposed would be between $30,000 - $45,000. Mr. Prease stated it would take 30-45 days for the results of the 7460 and then staff will have more information for the Authority. Chairman Perritt shared feedback he received about the Observation Area requesting that there be either a cutout in the fence covered with Plexiglas or a raised area away from the fence for taking clear pictures of the planes; and that information and pictures of the different types of planes that land at ILM be provided on the information board to ease identification for visitors.
Page 5 Dr. Crane mentioned the possibilities of an observation deck adjacent to the shelter and Mr. Prease indicated staff would look into a deck and that it would need to stay below 20 feet due to the radar site impact. Mr. Prease also shared a rendering of the proposed Wall of Fame with the DC3, P47 and F101 Voodoo planes in the background. Mr. Hickman pointed out that we need to find a photograph of a P47 used for training versus one with D-day stripes to be historically accurate. GOVERNMENT Mr. Rosborough reported that Governor McCrory visited ILM recently on a four stop tour around the state to introduce his 25 year Transportation Vision and will be back in town on October 9 th for the Coastal Energy Summit. Mr. Rosborough reported that the Aviation Transportation Reauthorization Bill is still pending and there is not a lot of movement there. Mr. Rosborough stated that the Department of Homeland Security received a notification that their new focus is going to be climate change and their additional duties will be to protect the infrastructure of the American cities from the effects of global warming. At Mr. Rosborough s request, Mrs. McLane reported that she and Mr. Prease attended a roundtable, along with other airports and consultants, with the FAA Memphis Office to review the FAA s environmental, grant and master planning processes. Mrs. McLane indicated the processes and procedures are substantially more involved than under Atlanta s Office and that the Memphis Office has a big emphasis on environmental review, particularly to the point that almost anything an airport does is going to be subject to some type of environmental review by the FAA. Mrs. McLane said the Memphis ADO is also expecting airports to update their Master Plan and Airport Layout Plan every 5 years. Mr. Rosborough summarized that this means there is going to be more oversight coming out of the Memphis ADO which will require more time from ILM staff and require more money to be spent on studies, and therefore, it will take money away from doing the actual projects, when there is already a shortage of funds. Chairman Perritt added that at the Greater Wilmington Business Journal Power Breakfast last week, Senator Michael Lee made a comment in one of his responses regarding economic development and plugged ILM beautifully. Senator Lee had recently visited ILM and the International Arrivals Facility and indicated that ILM has shovel-ready sites that would be great for the Garner Report s development plan. MARKETING AND PUBLIC RELATIONS Mr. Morton updated the Authority on agenda items. Mr. Morton shared with the Authority the USA Today voting for the best riverfront and reported that currently Wilmington is number one with the next closest being Spokane, Washington. Mr. Morton encouraged everyone to vote and share this link with others as a way to promote travel to the area.
Page 6 PLANNING & DEVELOPMENT Mr. Morton updated the Authority on agenda items. Mr. Morton stated he had a reporter from The Greater Wilmington Business Journal contact him about the business park and the A&P certification program being pursued with CFCC. Mr. Morton reminded the Authority that ILM is a sponsor of the NC Foreign Trade Promotional Conference, October 7 & 8, with a tour of the ILM International Arrivals Facility on October 7 th. Mr. Wolfe commented, regarding the A&P certification, that Commissioner Beth Dawson and he met with the Southeastern Economic Development Commission and should this program become a reality, if it is feasible, the County will seek grant money to make sure that funds are available for this program. Mr. Barber updated the Authority that he and Mr. Morton met with Ted Spring a few weeks ago regarding the A&P program and requested letters from Timco out of Greensboro stating there is a tremendous demand for A&P certified staff. Guilford and Craven Community Colleges have programs in place but can t fill the demand. Mr. Morton reported that the military and Honda jet also have a demand for this certification and staff is seeking letters from them to support the demand. Mr. Morton stated this would be a great marketing tool to encourage aerospace industry to relocate to Wilmington. OPERATIONS REPORT Using charts for illustration, Mr. Broughton reported total passengers handled and seats available for September 2014. Mr. Broughton advised that the difference from last year s numbers is due not only to the size of the aircraft but the frequency with several flights being downsized by the airlines. Mr. Broughton reported that staff looks at fuel prices and compares ILM to other airports around the state. Mr. Broughton stated that staff has also recently downloaded the app Foreflight to further monitor fuel prices and this app shows fuel prices as red, amber, or green. Staff noticed the app is showing a lot of red on the fuel prices with ILM, Southport, and RDU in the red; Jacksonville was amber and then Wallace and Columbus County were in the green. Mr. Broughton stated that staff continues to compare ILM to like-size airports, being the Level 5 and 6 towered airports, in VA, NC and SC and compared to those airports, ILM still remains below average. Dr. Crane thanked Mr. Broughton for looking into Foreflight and hopes that the FBOs, knowing that staff is monitoring it, will work to be more competitive. Dr. Crane stated that ILM was out of the red for a little while in September and it was good to be amber for a short time. Mr. Broughton reminded the Authority that the airport can t control fuel prices but can discuss fuel prices with the FBOs and in looking at Foreflight today a difference of 26 a gallon would have put ILM in amber. Chairman Perritt stated for the benefit of the new Authority members that ILM is a great stopping place from the NE to the Florida market and there are price competitive, small community strips that either, because of their structure or subsidization, market to those planes to
Page 7 stop and fill up. ILM provides a different level of service - if the weather is bad, it is easier to stop at ILM; it is a higher quality stop but when you are putting on 75 400 gallons of fuel, $1 makes a big difference. Mrs. Wilsey pointed out that the price reported on these apps is retail and doesn t include any local discounts or incentives. Regarding Mr. Broughton s fare comparison charts, Chairman Perritt commented that ILM is not a low cost airport but a high quality, high experience airport and pointed out it is good to see where our leakage prices are. Chairman Perritt also reminded the Authority that this is a snapshot and that prices change instantaneously. DIRECTOR S REPORT Mrs. Wilsey reported to the Authority on the recent World Routes Conference in Chicago she attended with Mr. Broughton and Joseph Pickering, Air Service Consultant with Mead & Hunt. Staff met with 8 airlines including ILM s two incumbents, Delta and American, who are very happy with ILM s performance. Mrs. Wilsey stated American and Delta are happy with the yields and they like that we have good local traffic to the Atlanta market. Mrs. Wilsey indicated staff also offered both United and American the Small Community Air Service Development Grant for service to Chicago and both of them are still considering it, with American as our best chance at this point. Mrs. Wilsey reported that staff also met with other airlines to promote our International Arrivals Facility for future international service to the Caribbean with the hopes that as their business plans expand, they will keep ILM in mind. Mrs. Wilsey updated the new Authority members on the options proposed for a restaurant on airport property. Mrs. Wilsey stated that the food truck option is the most likely place to start and staff will continue conversations with the food truck industry to see what they would recommend for scheduling. Staff will get back to the Authority with updates and target some service in the spring and summer seasons. Mrs. Wilsey reported that she would be attending the Aviation Task Force Development meeting in Raleigh on October 7 th and members were charged by the Governor to look into ways to streamline the FAA processes so the airports in NC can get work done more efficiently and also look at converting former military service members into our workforce as well as finding ways to increase the education process with the aviation industry. UNFINISHED BUSINESS None. NEW BUSINESS Chairman Perritt updated the committee assignments as follows: Planning & Development Mr. Wolfe and Mr. Barber Marketing Dr. Crane
Page 8 Finance Mr. Hickman and Mr. Lambeth Facilities Mr. Perritt Government Mrs. Girardot and Mr. Perritt ADJOURNMENT There being no further business to come before the Board, Mr. Hickman MOVED, SECONDED by Mr. Wolfe to adjourn. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Lambeth was absent. Chairman Perritt adjourned the meeting at 6:55 p.m. Prepared by: Rose M. Davis Respectfully Submitted: Thomas C. Barber, II, Secretary Date of Approval: November 5, 2014