RENO-TAHOE AIRPORT AUTHORITY BOARD OF TRUSTEES

Transcription

1 RENO-TAHOE AIRPORT AUTHORITY BOARD OF TRUSTEES FINANCE AND BUSINESS DEVELOPMENT COMMITTEE Minutes from the Meeting September 11, 2012 In Attendance: Mark Crawford, Chairman* Rick Murdock, Trustee* Dr. Kosta Arger, Trustee* Steve Katzmann, Trustee Adam Mayberry, Trustee* John Wagnon, Trustee* (attendance via phone) Jerry Hall, Trustee Dean Schultz, Executive Vice President/COO Ann Morgan, Fennemore Craig Jones Vargas Rick Gorman, CFO Tina Iftiger, Vice President of Economic Development Leah Williams, Manager of Accounting Tony Osendorf, Manager of Finance & Budgeting Joyce Humphrey, Manager of Purchasing & Materials Management Patrick North, Senior Internal Auditor Laurie Weeks, Manager of Concessions Marty Mueller, Director of Technology and Information Systems Rebecca Marvin, Administrative Assistant Kathleen Conaboy, Vice President, McDonald Carano Wilson Lindsay Knox, Government Affairs Group, McDonald Carano Wilson Bob Meurer, President, Reno-Tahoe Aviation Association Melissa Jones, Sr. Vice President, ZoomSystems James Austin, Account Executive, Dell Wayne Arriola, Bear Mountain Collision Tonia Arriola, Owner, Bear Mountain Collision Center *Denotes Finance Committee member Note: The official minutes of the Finance Committee meetings are maintained on digital recorders used to record the proceedings. The following is provided as a reference to the subject matter and conclusions reached from the discussion. Topics Discussed: I. Review of meeting minutes from August 2012 The Finance and Business Development Committee unanimously approved the minutes from August 7, II. Review of meeting minutes from the Special Finance and Development Committee Meeting. The Finance and Business Development Committee unanimously approved the minutes from August 21, 2012 III. IV. Public Comment Items to be presented to the Finance and Business Development Committee for review and recommendation to the Board: #12(09)-68 A. AUTHORIZATION FOR THE PRESIDENT/CEO TO EXECUTE AMENDMENT NO. 1 TO THE NONEXCLUSIVE SPECIALTY VENDING CONCESSION LICENSE WITH NEWZOOM, INC. DBA 1

2 ZOOMSYSTEMS TO EXERCISE THE FIRST OPTION TO EXTEND THE TERM FOR ONE YEAR, THEREFORE EXPIRING ON AUGUST 31, NewZoom Inc. dba ZoomSystems has been operating at the Reno-Tahoe International Airport (RTIA) since Offering high-end electronic products and accessories through small format automated retail kiosks, ZoomSystems had an initial term of two years with two-one year extension options. A new license agreement was approved by the Board in September of 2010 for a two-year term with the potential for up to two oneyear extension options. The nonexclusive specialty vending concession license expired on August 31, ZoomSystems has formally requested to exercise their first option to extend the license for one year. The Board s approval of Amendment No. 1 would extend the nonexclusive specialty vending concession license with ZoomSystems by one-year and would be subject to all terms and conditions set forth in the original license. Trustee Arger commended the Authority for having this type of concession within the Airport as it is a convenient benefit to passengers. He also had questions regarding if similar products to those offered by ZoomSystems are also for sale by other retail tenants and whether this inhibits their sales. Staff stated that the Authority urges the other concessioners to have as little duplication of products as possible. In addition, ZoomSystems machines also benefit from locations out on the concourses convenient to passengers waiting to board aircraft. #12(09)-69 B. AUTHORIZATION FOR THE PRESIDENT/CEO TO NEGOTIATE FINAL TERMS AND EXECUTE A NEW TEN YEAR LEASE AGREEMENT AT 1200 TERMINAL WAY BETWEEN PRO COLLISION CENTER AND THE RENO-TAHOE AIRPORT AUTHEORITY. The Reno-Tahoe Airport Authority (RTAA) acquired 1200 Terminal Way in 1998 consisting of approximately one acre with 11,826 square foot of commercial/warehouse space. This building has been vacant for approximately one year. In August 2012 RTAA was contacted by Tonia Arriola, owner of Bear Mountain Collision Center in Big Bear, CA regarding the building and expressed their interest in a lease agreement. The Arriola s are looking to open a new business called Pro Collision Center that would operate as a state of the art body shop and collision center. The proposed lease term is ten years with a tiered rate structure, based on fair market value for similar properties, and a $10,000 RTAA tenant improvement allowance. As an incentive, four months of free rent will be provided to allow this new company to begin business and establish its new operation in Reno. This is similar to incentives provided by other buildings for lease in the market. Over the ten year term, estimated lease revenue is forecasted to be approximately $533,000. 2

3 Maintenance of the major mechanical, structural and building envelope components is estimated to cost the RTAA between $5000 and $7000 annually over the term of the lease. #12(09)-70 C. AUTHORIZATION FOR THE PRESIDENT/CEO TO AWARD A CONTRACT TO DELL COMPUTER CORPORATION FOR THE REPLACEMENT OF COMPUTER HARDWARE AND SOFTWARE FOR THE VIRTUAL COMPUTING INFRASTRUCTURE, AT THE RENO-TAHOE INTERNATIONAL AIRPORT, IN THE AMOUNT OF $181,289-EXEMPT FROM COMPETITIVE BIDDING REQUIREMENTS AS AUTHORIZED BY NRS (D), (G), AND (H). The Reno-Tahoe Airport Authority utilizes advanced virtual computing technology to maintain reliable and efficient operation of its many information systems. The existing virtual computing infrastructure provided by Dell Computer Corporation has been in continuous operation for nearly 5 years and requires replacement. This upgrade is necessary to prevent failure of the hardware causing increased downtime and extend the warranty to cover the upgraded system. It will also provide additional capacity that is necessary in order to accomplish the virtualization of several important systems which are scheduled for conversion this fiscal year. Trustee Katzmann had questions as to if the cost covers the warranty and service, and what is done with the hardware that is being removed. Staff confirmed that the outlined cost includes the warranty and service of the new hardware over the estimated five-year life of the asset, and that the old hardware typically gets used for testing purposes. If the equipment is surplus, Nevada Revised Statutes have specific guidelines for disposition of Authority owned assets. Trustee Murdock also had questions regarding if the installation fee of $34,442 ever gets removed. Staff stated that when removing the amount of hardware and re-installing it as proposed, it is far too extensive for our in-house staff to complete. With the size of the equipment upgrade, the equipment vendor can configure the system and install the equipment much more efficiently and cost effect than staff. #12(09)-74 D. AUTHORIZATION FOR THE PRESIDENT/CEO TO EXECUTE A PROFESSIONAL SERVICE AGREEMENT WITH MCDONALD CARANO WILSON, LLP FOR LOBBYING AND GOVERNMENT ADVOCACY SERVICES OF BEHALF OF THE RENO-TAHOE AIRPORT AUTHORITY. On June 12, 2012 the Finance and Business Development Committee directed staff to conduct a formal Request for Qualifications (RFQ) process to solicit interested candidates or firms to represent the Airport Authority s legislative and advocacy interests both at the state and local government levels. As a result, six proposals were received from firms located within the state of Nevada. The President/CEO convened a review and recommendation committee to evaluate the proposals and recommend the three most qualified firms for consideration. 3

4 On August 21, 2012 the Finance and Business Development Committee held a publicly noticed meeting to interview the three finalists: Ferrari Public Affairs Carrara-Nevada, Lewis & Roca, LLP and McDonald Carano Wilson, LLP. At the conclusion of the meeting the Committee unanimously voted to select McDonald Carano Wilson LLP (MCW). The Trustees commended the Authority on the thoroughness of the requirements, and had questions regarding how the MCW will interact with the local government. Staff stated that the Authority tracks all the issues and activities throughout the jurisdictions locally at the staff level, as well as McDonald Carano Wilson LLP. Kathleen Conaboy with McDonald Carano Wilson was introduced and also stated they stay well-informed with the local governments and work to create good relationships and listen to the issues that are of concern to the Authority. In addition, MCW interviews and outreaches to all candidates for local government offices to enhance its ability to discuss Authority issues immediately upon election. Trustee Arger asked Trustee Hall if there could be a segment in the Board Retreat to express the expectations the Board has of the lobbyist. Trustee Hall stated that it would be a good opportunity to provide input. Chair Crawford stated that Trustee Murdock has a potential conflict of interest with this item and has recused himself from participating in the discussion and committee vote. and possible action at the upcoming Board meeting IV. Items presented to the Finance and Business Development Committee for Approval: A. Audit Plan July 1, 2012 through June 30, 2012 The Committee had no additional questions prior to approval of the Plan. V. Items presented to the Finance and Business Development Committee for Discussion: A. VI. Items presented to the Finance and Business Development Committee for Information: A. Review of Operating Results through July 2012 Staff reported on the Operating Results through July 2012 and there were no comments. B. Review of Budget Transfers (if any) C. Review of Contracts and Professional Service Agreements through August

5 Trustee Katzmann had questions on if all the items listed had been budgeted and staff confirmed they had been in the budget. Trustee Hall questioned if the Ricondo and Associates is an annual contract amount. Staff indicated the proposed contract amount is not to exceed $50,000 and this amount covers the two year term of the agreement. D. Review of Legal Expenses through July 2012 Staff reported the Legal Budget has expended 4.8% of the budget with 8% of the budget year expired. Several Trustees had questions regarding the approximately $181,000 claim for legal fees associated with the 2011 National Championship Air Race accident submitted but currently unpaid by Reno Air Race Associated (RARA) insurance company. Staff stated that the efforts through legal counsel to obtain reimbursement have not been exhausted and RARA s insurance company has not formal rejected the claim at this time. E. Review of Board Budget through July 2012 Staff reported the Board of Trustee s has expended 3.2% of the budget with 8% of the budget year expired. There were questions raised regarding the higher than anticipated expenditures associated with the Board Retreat, and whether the Board budget needed to be increased. Staff stated that due to the relatively small nature of the unbudgeted expense, it would most likely be absorbed by savings in other expenditure items in the Board budget or savings in other Authority departments. Each year staff performs a mid-year review of the budget and will evaluate and take any necessary steps, subject to Board approval, to address the adequacy of the approved budget for unanticipated costs. Chair Crawford noted that the interviewing expense in the Board budget will be used before long for interviewing the President/CEO candidates with the announced retirement by Krys Bart upon the expiration of her existing employment contract. F. Review of Legislative Consultant s Budget through July 2012 Staff reported the Legislative Consultants Budget has expended 7.8% of the budget with 8% of the budget year expired. VII. Public Comment VIII. Adjournment The meeting was called to order at 9:00 AM and was adjourned at 9:51 AM MC/ RG/rm 5