RENO-TAHOE AIRPORT AUTHORITY BRIEF OF MINUTES MEETING OF THE BOARD OF TRUSTEES February 12, :00 a.m.

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1 RENO-TAHOE AIRPORT AUTHORITY BRIEF OF MINUTES MEETING OF THE BOARD OF TRUSTEES February 12, :00 a.m. MEMBERS PRESENT Nat Carasali, Chair Andy Wirth, Vice Chair Dr. Kosta Arger, Treasurer Rick Murdock, Secretary Bill Eck Steve Katzmann Bob Larkin Adam Mayberry ALSO PRESENT Marily M. Mora, A.A.E. President/CEO Dean Schultz, A.A.E. Executive Vice-President/COO Ann Morgan General Counsel Claire Johnson Clerk of the Board MEMBERS ABSENT/EXCUSED Jerry Hall The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno- Tahoe International Airport, Reno, Nevada. Chair Nat Carasali called the meeting to order. The Pledge of Allegiance was recited. Roll was called. III. PRESENTATIONS AND AWARDS A. Employee, Tenant and Special Recognitions Tina Iftiger, Vice President of Economic Development, introduced Trish Bisio, Assistant Manager of The Paradies Shops at the Reno-Tahoe International Airport (RTIA). Ms. Bisio was selected as the winner of the 2014 Assistant Manager of the Year by Paradies. Ms. Iftiger stated that Kathy Person, Manager of the RTIA Paradies Shops, was named Manager of the Year in 2013, and The Paradies Shops has been voted Best Airport Retailer for 19 consecutive years. Ms. Bisio thanked the Board, Ms. Mora and Reno-Tahoe Airport Authority (RTAA) staff for the special recognition of the 2014 Assistant Manager s Award. Ms. Bisio expressed her appreciation and stated the award would not be possible without the support of the RTAA staff. Heidi Jared, Manager of Public Affairs and Customer Service, introduced representatives from Swope Middle School and the Culinary Arts students that created the decorative gingerbread houses that were on display in the Airport terminal through the holidays. Ms. Jared stated that Airport visitors voted for their favorite gingerbread house by donating money through a slot in each of the seven houses. Ms. Jared said since its beginning in 1996, this holiday display has raised nearly $21,500 for Swope Middle School and local non-profit organizations, and this year s proceeds totaled $1,

2 Page 2 of 9 Ms. Jared stated this season s gingerbread house winner, A Storybook Christmas, was created by Alex Newman, Ryan Gill and Jakob Beach and earned $ Ms. Jared stated that Swope Middle School shared a portion of their proceeds with the Veteran s Guest House, an organization which provides the United States military service Veterans and their families temporary overnight accommodations when they are receiving treatment at a medical facility in the Reno-Sparks area. Ms. Jared presented a check to Noreen Leary, Veteran s Guest House Chief Executive Officer, for $ Ms. Leary thanked Swope Middle School for the donation and gave the winning students an Award of Excellence from the Veteran s Guest House for outstanding gingerbread house building. Ms. Jared said that Swope Middle School will use the remaining dollars from the holiday event to continue this program next year. Dean Schultz, Executive Vice President/Chief Operating Officer, announced the promotion of Chris Stack as the new Assistant Federal Security Director Generalist of the Transportation Security Administration (TSA), responsible for all Screening Operations, and Administrative Duties in Northern Nevada. Mr. Schultz congratulated Mr. Stack and stated that the RTAA is looking forward to continuing a good working relationship in the years ahead and having him as the TSA lead in Reno. Mr. Stack stated that he has worked for the Transportation Security Administration at the Reno-Tahoe International Airport for over 12 years and has held positions from Supervisory Transportation Security Officer up to Acting Director. Mr. Stack said that he has experienced a strong partnership between the TSA and the Airport Authority over the years and that partnership still continues today and will for many years to come. B. Introduction of New, Promoted and Retired Employees Dean Schultz, Executive Vice President/COO, introduced one new Reno-Tahoe Airport Authority employee Michael Fretz, Airport Police Officer. C. Tenant Communication Ms. Mora introduced JetBlue Airways Corporation representatives Rick Clark, JetBlue Events Manager, Anders Lindstrom, JetBlue Public Relations Manager, and Jace Hieda, Manager of Regional Marketing Western & Central U.S. Ms. Mora stated that the JetBlue representatives have been visiting our community to work on events for the launch of the new air service to New York beginning on May 28, 2015, and building a partnership for marketing this new service to New York. Mr. Lindstrom addressed the Board and thanked them for their support. Mr. Lindstrom stated that the results of the press conference on January 13, 2015 announcing the new service to New York were overwhelming and they are excited to be in Reno now for the site visit. Mr. Lindstrom said the JetBlue representatives were enthusiastically welcomed by the Reno-Sparks business community, and arrangements are being made for the launch event and the media activities here at the Reno-Tahoe International Airport, and also at the John F. Kennedy Airport in New York.

3 Page 3 of 9 Ms. Mora asked the Chairman and Trustees for a standing ovation as a welcome for JetBlue and the three representatives. IV. PUBLIC COMMENT None. V. APPROVAL OF MINUTES On motion by Trustee Wirth, seconded by Trustee Katzmann, which motion duly carried by unanimous vote, the Board approved the minutes from the Board of Trustees meeting of January 8, VI. APPROVAL OF AGENDA Chair Carasali requested a change in the order of the agenda, indicating that the first presentation noted under # X. Items for Board Information and Discussion - Nevada Legislative Session Update, will be moved to earlier in the agenda, following # VI. Approval of Agenda. On motion by Trustee Wirth, seconded by Trustee Larkin, which motion duly carried by unanimous vote, the Board approved the February 12, 2015 Board of Trustees meeting agenda, with the revisions proposed by the Chair. X. ITEMS FOR BOARD INFORMATION AND DISCUSSION A. Presentations 1. Chair Carasali introduced Kathleen Conaboy of McDonald-Carano-Wilson, LLP to provide an update on the Nevada Legislative Session. Ms. Conaboy also provided details of legislative items that are of specific interest to the Reno-Tahoe Airport Authority. Ms. Conaboy stated that Senate Bill 93, the Aviation Tax Abatement Bill, will be heard on Thursday, February 19, 2015 at 3:30 pm in a Joint Committee Hearing. Ms. Conaboy said that Senator Roberson will preside and Mr. Derek Armstrong is a newly elected Assemblyman and is now Chair of Taxation. Ms. Conaboy stated that Steve Hill, Director of the Governor s Office of Economic Development, will present Senate Bill 93 on behalf of the Governor s Office and he has invited Assemblywoman Irene Bustamante-Adams, Chair of Taxation from last Session, and Lieutenant Governor Mark Hutchison to come to the table with him to introduce the Bill. Ms. Conaboy stated that Assemblywoman Bustamante-Adams and Lieutenant Governor Hutchison chaired an Interim Southern Nevada Forum Subcommittee on Economic Development, and that Committee voted unanimous support of the concept of the aviation tax abatement. Ms. Conaboy stated that she joined with RTAA staff, members from the Governor s Office of Economic Development and Barbara Smith Campbell, tax consultant for the Reno-Tahoe Airport Authority, to meet with the Department of Taxation to talk about the Fiscal Note which has been revised and is now less than what it was last Session, which is good news for the RTAA. Ms. Conaboy said that there have been many discussions with legislators regarding the tax abatement and the outlook is positive

4 Page 4 of 9 that it will go forward smoothly. Ms. Conaboy also indicated that there has been a great deal of stakeholder involvement in this issue from all over the State. Ms. Conaboy stated that the Senate Transportation Committee will convene on Tuesday, February 17, and Ms. Mora, President/CEO, will be giving a presentation about the Reno-Tahoe Airport Authority. Ms. Conaboy said the purpose of the presentation in Senate Transportation was a means of educating those who are new this legislative session. Ms. Conaboy said the State Treasurer was presenting his agency budget in Senate Finance and then will be presenting his alternative budget which was issued last week. Ms. Conaboy stated that a $5.00 per ticket fee on airline tickets was included in that budget, which is illegal at the federal level and Ms. Mora worked with representatives from Airlines for America to point that out to legislators. Ms. Conaboy said Mr. Schwartz has now withdrawn the $5.00 per ticket fee from his budget, which will mean the budget will have to be reworked. Ms. Conaboy stated that she and her staff will be tracking bills and legislation daily to watch for operational interests of the RTAA and will report back, as necessary. VII. COMMITTEE / LIAISON REPORTS Committee / Liaison reports were given by: A. Finance and Business Development Committee Trustee Kosta Arger B. Planning and Construction Committee Trustee Bob Larkin C. Airport Noise Advisory Panel Trustee Bob Larkin D. Community Outreach Committee (COC) Trustee Adam Mayberry E. Stead Liaison Trustee Steve Katzmann F. RSCVA Board Trustee Kosta Arger G. Business Advisory Council Trustee Rick Murdock H. The Chamber Reno Sparks Northern NV Marily Mora (RTAA) I. Reno-Tahoe International Airport Users Committee Trustee Bill Eck VIII. CONSENT ITEMS FOR BOARD ACTION A. #15(02)-03 Authorization for the President/CEO to Execute a Professional Services Agreement for Design Work and Pavement Inspections for the 2015 Airfield and Landside Pavement Management System Program at Reno-Tahoe International Airport and Reno-Stead Airport, with Stantec, in the Amount of $238,200 carried by unanimous vote, the Board approved Agenda Item #15(02)-03 as follows: Authorized the President/CEO to Execute a Professional Services Agreement for Design Work and Pavement Inspections for the 2015 Airfield and Landside Pavement

5 Page 5 of 9 Management System Program at Reno-Tahoe International Airport and Reno-Stead Airport, with Stantec, in the Amount of $238,200 B. #15(02)-04 Authorization of Public Comment Period for an Amendment to the Adopted Reno-Tahoe International Airport Land Use Plan carried by unanimous vote, the Board approved Agenda Item #15(02)-04 as follows: Authorized the President/CEO to Open a Public Comment Period for an Amendment to the Adopted Reno-Tahoe International Airport Land Use Plan C. #15(02)-05 Authorization for the President/CEO to Enter Into an Inter-Local Agreement for a Disadvantaged Business Enterprise (DBE) Disparity Study, Related to Federally Funded Construction Projects at Reno-Tahoe International Airport and Reno-Stead Airport, in an Amount Not to Exceed $110,608 carried by unanimous vote, the Board approved Agenda Item #15(02)-05 as follows: Authorized the President/CEO to Enter Into an Inter-Local Agreement for a Disadvantaged Business Enterprise (DBE) Disparity Study, Related to Federally Funded Construction Projects at Reno-Tahoe International Airport and Reno-Stead Airport, in an amount not to exceed $110,608, and authorize the President/CEO, or her designee, to sign D. #15(02)-06 Acceptance of the Comprehensive Annual Financial Report carried by unanimous vote, the Board approved Agenda Item #15(02)-06 as follows: Accepted the Comprehensive Annual Financial Report for Fiscal Year IX. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION A. #15(02)-07 Recommendation to Authorize Dermody Properties to Represent the Reno-Tahoe Airport Authority in Order to Complete Phase 2 and Phase 3 of the Reno-Stead Airport Request for Qualifications for Real Estate Development On motion by Trustee Arger, seconded by Trustee Larkin, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(02)-07 as follows: Authorized Dermody Properties to Represent Reno-Tahoe Airport Authority in Order to Complete Phase 2 and Phase 3 of the Reno-Stead Airport Request for Qualifications for Real Estate Development.

6 Page 6 of 9 B. #15(02)-08 Award of Bid for Two All-Wheel Drive Snow Plows Oshkosh Truck/Spreaders to Jack Doheny Supplies Ohio, Incorporated, in the Amount of $998,000 Chair Carasali introduced Joyce Humphrey, Manager of Purchasing & Materials Management. Ms. Humphrey stated the bid and purchase of two snow plows with spreaders and 22 foot plows was discussed at the Finance and Business Development Committee Meeting on February 10, Ms. Humphrey said that additional information was requested, including additional pricing information and outreach to other airports for cost comparison. Ms. Humphry indicated that after the meeting she reached out to the Airport Purchasing Group and she was contacted by either Procurement staff or the Operations Manager of five airports: Louisville, KY., Pittsburgh International Airport, Rockport, TX., Spokane, WA., and Indianapolis, IN. Ms. Humphrey said that none of the plows purchased by these airports were comparable to the plows that the RTAA had bid for which made it difficult to do a price comparison. Ms. Humphrey asked Scott Harkema, Airfield Maintenance Superintendent, to explain the technical specifications. Mr. Harkema stated that the other bid that was submitted in the process was for a two-wheel drive truck and would create a variety of problems for the RTAA due to the extra height, which is at least a foot taller than the Osh Kosh truck, making it more difficult for mechanics to access the engine and for the operator to get in and out of the truck. Mr. Harkema explained that the frame itself is only rated for a snow plow, not a spreader. Mr. Harkema stated that the bidder was unwilling to offer an extended warranty, which shows lack of good faith. Mr. Harkema said that after looking at both trucks side by side, there was no comparison between the two pieces of equipment and that the Osh Kosh is a much better truck. Mr. Harkema said that the track record the RTAA has had with Osh Kosh equipment has been excellent and the support received from Jack Doheny Supplies Ohio, Incorporated, has been excellent. Ms. Humphrey recommended that the Board authorize the President/CEO to award the two Osh Kosh snow plow trucks to Jack Doheny Supplies Ohio, Incorporated, in the amount of $998,000 or $499,000 each. carried by unanimous vote, the Board approved Agenda Item #15(02)-08 as follows: Authorized Award of Bid for Two All-Wheel Drive Snow Plows Oshkosh Truck/Spreaders to Jack Doheny Supplies Ohio, Incorporated, in the Amount of $998,000 C. #15(02)-09 Approval to Revise the Fiscal Year Reno-Tahoe Airport Authority Board of Trustees Calendar to Change the Dates of the June 2015 Committee and Board Meetings - June 9 and June 11 Current Schedule - June 16 and June 18 Proposed Schedule

7 Page 7 of 9 On motion by Trustee Katzmann, seconded by Trustee Larkin, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(02)-09 as follows: Approved the Revision to the Fiscal Year RTAA Board of Trustee Calendar to Change the June 2015 Committee and Board Meeting Dates to June 16 and 18, respectively X. ITEMS FOR BOARD INFORMATION AND DISCUSSION A. Presentations (continued) 2. Chair Carasali introduced Rick Gorman, RTAA Chief Financial Officer, to present the Fiscal Year Reno-Tahoe Airport Authority Mid-Year Financial Review. Mr. Gorman said his presentation will be an updated financial projection of where the RTAA will be at end of the fiscal year. Mr. Gorman indicated that some additional items have surfaced as part of the projection since the last time the budget was adopted. Mr. Gorman stated that with the review and the additional items, there would not be a need for Board action because all of the new opportunities can be accommodated within the existing budget. Mr. Gorman stated in the Airline Agreement there is a cost recovery formula associated with our landing fees, terminal rents and baggage handling fees. Mr. Gorman said that the Mid-Year Review allows us to adjust or modify the airline rates and charges based on the current forecast. Mr. Gorman stated that because there is an actual settlement at the end of the year, an attempt is made to get the rates and charges as close to the requirement as possible so that there is not a large settlement one way or the other with the airlines. Mr. Gorman said that the new or unanticipated requests submitted are evaluated by looking at the current traffic forecast and the impact of those on revenues, overall operating expenses, and then looking at areas where savings have been identified which allow for additional items to be added that were not part of the original budget. Mr. Gorman stated that the new items can be accommodated within the current adopted budget and that there will not be a request for additional appropriation or funding other than what the Board has approved previously. Mr. Gorman stated there is $433,000 of additional requested items the RTAA staff would like to start this fiscal year and $462,000 has been identified in savings, about one half of it being in the personnel area and the remaining in contractual services, supplies, materials and administrative expenses. Mr. Gorman said that overall it is expected that the RTAA will be under budget by about $240,000, even with the addition of the new items that were not part of the original budget submission. Mr. Gorman stated that it will be necessary for some of the items to come before the Board for approval, so that while funding has been identified to the extent that the contract or the work, such as the Disparity Study, needs to be approved or presented to the Board, that would be the next step in the process. Mr. Gorman said that there is also a list of capital improvement projects that have been submitted, including the General Aviation (GA) East restroom facilities, two studies to do the exit lane

8 Page 8 of 9 technology, and Phase 2 of the Customs facility. Mr. Gorman said all three of these projects can be absorbed within the existing budget. Mr. Gorman stated that the passenger traffic forecast is projected to be right where it was budgeted in May Mr. Gorman stated that the RTAA is $837,000 higher in operating revenues than had been budgeted for and the primary good news is that it is associated with the RTAA parking revenue, which is doing much better due to longer durations that passengers are staying in the Reno-Tahoe area. Mr. Gorman said that the RTAA has $239,000 of projected savings in operating expenses, which means overall the RTAA is forecasted to be about one million dollars better than what was budgeted in May Mr. Gorman said that the Board s approval of early repayment of some subordinate notes associated with the Reno-Stead terminal and the investing of those monies, the RTAA was able to lower the debt service by one million dollars and that has helped to improve the overall debt service coverage ratio. Trustee Arger asked a question about the progress of the Geographic Information System (GIS) study that the Board authorized last year. Jamie McCluskie, Vice- President of Planning, Engineering, & Environmental Management, responded that the study was done during the time of year when the leaves are still on trees, and now the aerial photography data collection is being processed. Mr. McCluskie also stated that staff has met with different departments within the RTAA to see how other applications of GIS can be leveraged. Mr. McCluskie said that within the next few months the data will be reconciled into a format that can be utilized to establish all of the necessary base data needs. Mr. McCluskie said that the study is on schedule and under budget, which gives some allowance to do other applications for other departments. B. Board Meeting Schedule Chair Carasali referred to the upcoming meetings schedule. Ms. Mora made note of the FY Budget Workshop which is scheduled to occur immediately following the Board meeting on April 9, March 10, :00 a.m. Finance & Business Development Committee Meeting 2. March 10, :00 a.m. Planning & Construction Committee Meeting 3. March 12, :00 a.m. Board of Trustees Meeting 4. April 7, :00 a.m. Finance & Business Development Committee Meeting 5. April 7, :00 a.m. Planning & Construction Committee Meeting 6. April 9, :00 a.m. Board of Trustees Meeting 7. April 9, 2015 TBD * FY Budget Workshop Immediately Following the Board of Trustees Meeting C. President/CEO s Report Ms. Mora referred the Trustees to the written President/CEO s Report included in their board binders and asked if there were any questions. There were no questions raised.

9 Page 9 of 9 D. General Board Comments, Questions, and Items for Future Board Meetings None. XI. PUBLIC COMMENT None. XII. ADJOURNMENT There being no further business, the meeting was adjourned at 10:10 am.. Chair Nat Carasali ATTEST: Secretary Rick Murdock