RENO-TAHOE AIRPORT AUTHORITY BRIEF OF MINUTES MEETING OF THE BOARD OF TRUSTEES July 13, :00 a.m.

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1 RENO-TAHOE AIRPORT AUTHORITY BRIEF OF MINUTES MEETING OF THE BOARD OF TRUSTEES July 13, :00 a.m. MEMBERS PRESENT Shaun Carey, Chair Jessica Sferrazza, Secretary Lisa Gianoli, Treasurer Nat Carasali Carol Chaplin Daniel Farahi Richard Jay Art Sperber 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 Jenifer Rose The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. Chairman Rick Murdock called the meeting to order. The Pledge of Allegiance was recited and roll was called. 3. PUBLIC COMMENT, if any Limited to Three Minutes Per Person There was no public comment. Trustee Sferrazza requested that agenda Item # 7. Presentations and Awards, a. Recognition of Outgoing Trustee and b. Recognition of Outgoing Chair, be moved to this point in the agenda. Based on Chairman and Trustee consensus, Items 7a and 7b were heard next. 7. PRESENTATIONS AND AWARDS a. Recognition of Outgoing Trustee Chairman Murdock recognized outgoing Trustee Jerry Hall who was appointed by the City of Reno in 2009 for a 4-year term and then reappointed in 2013 for a second 4-year term. Chair Murdock discussed highlights of Trustee Hall s time on the Board. He specifically mentioned Trustee Hall s participation on Board committees, his efforts to formulate a structure and template of how staff reports and presents information to the Board, his leadership during the development of the RTAA Strategic Plan, and the role he played in the master planning process. Chair Murdock thanked Trustee Hall for his guidance and contributions in helping to make the Airport what it is today. Trustee Hall thanked Chair Murdock for his kind

2 Page 2 of 10 words and went on to recognize several of the staff he d worked with throughout time on the Board. Trustee Hall thanked Marily Mora, President/CEO, for the great work she s accomplished since joining the organization in 2013, citing the transition that s occurred in the RTAA and the fact that she embraced the strategic plan. Ms. Mora thanked Trustee Hall for his service and for his leadership during the strategic planning process. b. Recognition of Outgoing Chair Ms. Mora introduced Ben Brookman, Director of Network Planning for Alaska Airlines and Brad Walker, Consultant, Walker & Associates, LLC. Mr. Brookman spoke at length regarding the excellent partnership between Alaska Airlines and the RTAA, highlighting the role Chair Murdock played in fostering that partnership. Next, Ms. Mora recognized Chair Murdock as outgoing Chairman. During his two terms on the Airport board, Chair Murdock served as Secretary, Vice Chairman and finally Chairman of the Board. In addition, he was a key member of the Finance and Business Development Committee and the Community Outreach Committee. Ms. Mora said that it has been Chair Murdock s pivotal role as air service liaison where he truly shined and made a lasting difference for our airport and our community. As demonstrated by Mr. Brookman s comments, Chair Murdock developed outstanding working relationships with our airline partners and used his inside knowledge of the airline business to help in his role as a member of the Reno-Sparks Convention & Visitors Authority (RSCVA) Board and the Regional Air Service Corporation (RASC). As the Board s air service liaison, Chair Murdock was able to use his talent for blending hospitality and business when hosting airline VIPs. Ms. Mora said that Chair Murdock coined the phrase Use it or Lose it as he passionately encouraged the community to fill seats on the flights that he and the air service team worked so hard to bring to this community. Ms. Mora thanked Chair Murdock on behalf of the Board and the entire RTAA team for helping lift our Airport and our community. Chair Murdock commented on the relationship and role of the Board for the RTAA and stated that he is excited to see what the future will bring. He expressed his appreciation and gratitude to the Board of Trustees and staff, and to the representatives of Alaska Airlines. Trustee Sferrazza thanked Trustee Hall for his leadership and stated it was an honor to serve with him. She commended Chair Murdock on his demeanor as Chairman and for the instrumental role he s played in air service development. Trustees Carasali and Gianoli also expressed their gratitude to Trustee Hall and Chair Murdock. Chair Murdock opened the floor to the Trustees to query Mr. Brookman and Mr. Walker regarding the merger with Virgin America, and the process and potential of bringing more flights to Reno on Alaska Airlines. A discussion followed regarding Alaska Airlines focus and plans for growing air service, and the working relationship with the RTAA. Mr. Brookman stated that the existing RNO route performance is very good and that the RTAA and region don t need to change their methodology when it comes to monitoring and fostering air service. Mr. Walker stressed the importance of community involvement and complimented the cohesive effort that s been built here in this region. 4. ELECTION OF SHAUN CAREY AS CHAIR FOR FISCAL YEAR

3 Page 3 of 10 Chair Murdock indicated that pursuant to Nevada Statutes (Section 7, Chapter 474, Statutes of Nevada 1977), the next rotation of the Chairmanship of this Board is a City of Sparks appointee. He further indicated that Shaun Carey and Art Sperber were appointed by the City of Sparks. Chair Murdock stated that as current Chairman, he recommends Trustee Carey for Fiscal Year Chairman. There was no discussion. On motion by Trustee Gianoli, seconded by Trustee Carasali, the Board unanimously elected Trustee Carey as Chairman of the Board for Fiscal Year (FY) The gavel and chairman s seat were handed over to the new chairman who continued with the next agenda item and conducted the balance of the meeting. Chair Carey thanked the Trustees for their vote of confidence. 5. ADMINISTERING OF OATHS OF OFFICE Chair Carey indicated that the next item on the agenda was the swearing in of newly appointed and reappointed Trustees. He stated that Nancy Parent, Washoe County Clerk, will perform the Oath of Office for Richard Jay - City of Reno, Daniel Farahi - City of Reno, Art Sperber - City of Sparks, Carol Chaplin - Reno-Sparks Convention & Visitors Authority, and Nat Carasali - Washoe County. Ms. Parent administered the oath of office to swear in the newly appointed and reappointed Trustees. Chair Carey welcomed the new Trustees to the Board and congratulated them on their appointment. He also congratulated Trustee Carasali on his reappointment and then invited the newly appointed Trustees to comment. The Trustees each thanked Chair Carey and commented about their appointment to the RTAA Board. 6. ELECTION OF NAT CARASALI AS VICE-CHAIR, JESSICA SFERRAZZA AS SECRETARY, AND LISA GIANOLI AS TREASURER FOR FISCAL YEAR Chair Carey pulled this item from the agenda and therefore no action was taken. 7. PRESENTATIONS AND AWARDS c. Employee, Tenant and Special Recognition There were no employee, tenant or special recognitions. d. Introduction of New, Promoted and Retired Employees Dean Schultz, Executive VP/COO, introduced three new employees who recently joined the RTAA Michael O Brien, Airport Police Officer effective June 5, 2017, Benjamin Markham, Facilities Custodian effective July 5, 2017, and Jennifer Liebler, Concessions Property Specialist II effective July 10, Next, Ms. Mora recognized Ed Martin, Lead Airfield Maintenance Technician at Reno-Stead Airport (RTS), who retired effective July 7, Mr. Martin worked at RTS since joining the organization in November of During his 30+ years, Mr. Martin was promoted 3 times to positions including Airfield Maintenance Worker II in 1996, Airfield Maintenance Technician in 2005, and finally to his current position in Ms. Mora stated that in his current role as Lead Tech, Mr. Martin mentored new Airfield Maintenance Technicians to help them develop a

4 Page 4 of 10 deeper understanding of Airfield maintenance and operations. Over the years, he served an important role in helping to facilitate the National Championship Air Races (NCAR), and his asphalt maintenance efforts garnered positive remarks from the Federal Aviation Administration (FAA) on how well the pavement had been maintained. During his tenure, Mr. Martin helped facilitate many projects, including runway reconstruction projects and facility upgrades such as the maintenance shop and the new Freedom Flight terminal building. Ms. Mora congratulated Mr. Martin on his retirement and thanked him for his amazing 30 years of service to the organization. Mr. Martin commented on his time at the Airport and how proud he is to have served the RTAA. Mr. Schultz recognized one employee on her recent job promotion. Gina Castellar was promoted on June 29, 2017 from Accounting Technician AP to Payroll Administrator. e. Tenant Communication There was no tenant communication. 8. APPROVAL OF MINUTES On motion by Trustee Gianoli, seconded by Trustee Sferrazza, which motion duly carried by a majority of voting members, the Board approved the minutes from the Board of Trustees meetings of June 8 and June 22, The 4 new Trustees abstained since they were not in attendance at those meetings. 9. APPROVAL OF AGENDA On motion by Trustee Carasali, seconded by Trustee Gianoli, which motion duly carried by unanimous votes, the Board approved the July 13, 2017 Board of Trustees meeting agenda as amended. 10. COMMITTEE / LIAISON REPORTS Committee / Liaison reports were given by: a. Finance and Business Development Committee Trustee Lisa Gianoli b. Planning and Construction Committee Trustee Lisa Gianoli c. Airport Noise Advisory Panel (ANAP) Trustee Jessica Sferrazza d. Community Outreach Committee (COC) Trustee Jessica Sferrazza e. Stead Liaison Mike Scott f. RSCVA Board Trustee Nat Carasali g. Air Service Liaison CEO Marily Mora h. The Chamber Reno Sparks Northern NV CEO Marily Mora i. Reno-Tahoe International Airport Users Committee COO Dean Schultz j. Nevada Legislative Priorities Committee Trustee Lisa Gianoli 11. CONSENT ITEMS FOR BOARD ACTION a. #17(07)-34 Authorization for the President/CEO to Execute a Deed and Related Documents for the Sale of a Reno-Tahoe Airport Authority Owned Parcel of Land Located Near Reno- Stead Airport (Assessor s Parcel Number , Situs 0 Alpha Avenue) to UNR Holdings I, LLC for the Amount of $100,000

5 Page 5 of 10 On motion by Trustee Carasali, seconded by Trustee Gianoli, which motion was duly carried by unanimous votes, the Board approved Agenda Item #17(07)-34 as follows: Authorized the President/CEO to Execute a Deed and Related Documents for the Sale of a Reno-Tahoe Airport Authority Owned Parcel of Land Located Near Reno-Stead Airport (Assessor s Parcel Number , Situs 0 Alpha Avenue) to UNR Holdings I, LLC for the Amount of $100, ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION a. #17(07)-35 Authorization for the President/CEO to Award a Construction Contract for the 2017 Airside Pavement Repairs and Rehabilitation Project at Reno-Tahoe International Airport, with Q&D Construction, in the Amount of $481,850 Dave Lazo, Manager of Engineering and Construction, gave a presentation to the Board for discussion regarding the recommended award of a construction contract for the 2017 Airside Pavement Repairs and Rehabilitation Project at Reno-Tahoe International Airport, with Q&D Construction, in the Amount of $481,850. On motion by Trustee Gianoli, seconded by Trustee Carasali, which motion was duly carried by unanimous votes, the Board approved Agenda Item #17(07)-35 as follows: Authorized the President/CEO to Award a Construction Contract for the 2017 Airside Pavement Repairs and Rehabilitation Project at Reno-Tahoe International Airport, with Q&D Construction, in the Amount of $481,850. b. #17(07)-36 Authorization for the President/CEO to Execute Amendment No. 3 (2017 Airside Pavement Repairs and Rehabilitation) to the Professional Services Agreement for 2017 Annual Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $67,200, for a Total of $431,800 On motion by Trustee Carasali, seconded by Trustee Gianoli, which motion was duly carried by unanimous votes, the Board approved Agenda Item #17(07)-36 as follows: Authorized the President/CEO to Execute Amendment No. 3 (2017 Airside Pavement Repairs and Rehabilitation) to the Professional Services Agreement for 2017 Annual Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $67,200, for a Total of $431,800. c. #17(07)-37 Approval of the Fiscal Year Reno-Tahoe Airport Authority Board of Trustees Meeting Calendar On motion by Trustee Jay, seconded by Trustee Farahi, which motion was duly carried by unanimous votes, the Board approved Agenda Item #17(07)-37 as follows:

6 Page 6 of 10 Approved the Fiscal Year Reno-Tahoe Airport Authority Board of Trustees Meeting Calendar. d. #17(07)-38 Discussion and Appointment of a Board Member to Include Shaun Carey, Nat Carasali, Jessica Sferrazza, Lisa Gianoli, Jenifer Rose, Art Sperber, Richard Jay, Daniel Farahi, or Carol Chaplin, or a Staff Member to Include Dean Schultz, to Represent the Reno-Tahoe Airport Authority on the Flood Control Project Needs Committee, Pursuant to Assembly Bill 375 Ms. Mora gave a presentation regarding the Assembly Bill 375 requirement that the RTAA Board appoint a representative to the Truckee River Flood Management Authority (TRFMA) Flood Control Project Needs Committee (FCPNC), and that the appointment would be as a nonvoting member. Trustee Sferrazza inquired as to what the legislation actually does, specifically as it relates to the amendment that was added by Senator Julia Ratti, and stated her concern is with the imposition of a direct impact fee which would hugely affect the Airport. Josh Hicks, Partner and Head of Government Affairs with McDonald Carano, responded by saying that the imposition of an impact fee would be at the discretion of the committee. Jay Aldean, Executive Director TRFMA, provided further clarification, stating that there is a mandatory placement of a fee on the direct benefit area and it will be at the discretion of the committee to recommend the amount of the fee. In addition, the committee will not be able to recommend a subsequent tax unless they impose a fee. Trustee Sferrazza reiterated her concern with this since the Airport would be substantially affected by that direct impact fee. She said she wants the Board to be very aware of the impact fee and that it has to be established before another tax is levied. Trustee Jay asked what the financial impact would be to the Airport. Mr. Aldean responded that RTAA staff would need to weigh in on this with regard to the amount of square footage of building space on the Airport, but that the TRFMA Board is currently considering $8.00 per 1000 square feet of building space. For planning purposes, the TRFMA Board has asked that this preliminary number be considered by the committee. Trustee Sferrazza asked that in light of the change in flooding patterns, does the flood project apply only to the Truckee River. She also asked if the current sales tax sunsets. Mr. Aldean responded that the current sales tax does not sunset. He further indicated that he will be recommending that all revenue raised to build the flood project sunsets, so the fee would then sunset and any tax associated with the ballot question in 2018 would also sunset. The current sales tax would remain for operational purposes to maintain the existing facilities. Ms. Mora reminded the Board that this was discussed by the Legislative Committee and the Committee requested that the legislation be changed so that the RTAA seat is a non-voting member. She said staff is concerned about the impact fee on the Airport and a full cost benefit analysis will be done to determine what it would mean for the Airport going forward. Mr. Schultz added that staff has been tracking this closely and are very cognizant of the potential impact a direct fee will have. Staff is waiting for the determination of what the direct impact fee boundary is before calculations can be finalized. Mr. Schultz suggested that regardless of who represents the RTAA, the item needs to come back to the full Board on a regular basis to keep Trustees apprised of progress.

7 Page 7 of 10 Chair Carey added that the committee s schedule will be very time consuming due to the number of proposed committee members and the intensity of the discussion that needs to be had. Mr. Aldean indicated there are two important missions of the committee. The first is to recommend by April 2018 a financing structure including a fee, and more than likely a tax combination, that will fund the flood project; this is a statutory requirement. Secondly, following that, the committee will have six more months to make recommendations on flooding issues throughout the valley that are outside the purview of the improvements that will be built for the flood project, i.e. issues with irrigation ditches, the North Valleys flooding problem, the south Truckee Meadows Toll Road flooding, etc. Chair Carey further stressed that the committee schedule is monumental and the pace of the work will be very time consuming in order to finish by the statutory deadline. Trustee Gianoli asked for clarification that this committee is being established to deal with Truckee River flooding only. Mr. Aldean clarified that the second mission of the committee is to develop a report to recommend a regional operations plan to the governing authorities and how it could be accomplished. Chair Carey indicated that this process will involve a lot of policy decisions and it will be very important to have a standing agenda item for the RTAA representative to keep the Board fully informed in order to stay ahead of the curve and provide the opportunity to give feedback on such an important item for the future that will be a challenge financially. Ms. Mora referenced the Legislative Committee as the forum to bring items forward to the Board. Chair Carey asked if there were any Trustees interested in serving on the Flood Control Project Needs Committee. There were no volunteers from among Board members. Ms. Mora reviewed the experience and knowledge that Mr. Schultz would bring to the committee. On motion by Trustee Gianoli, seconded by Trustee Sferrazza, which motion was duly carried by unanimous votes, the Board approved Agenda Item #17(07)-38 as follows: Appointed Staff Member Dean Schultz to Represent the Reno-Tahoe Airport Authority on the Flood Control Project Needs Committee, Pursuant to Assembly Bill ITEMS FOR BOARD INFORMATION AND DISCUSSION a. Presentations i. Ms. Mora provided background information on Mr. Hicks, the Head of Government Affairs for McDonald Carano Wilson (MCW), who represents the RTAA in state and local governmental affairs issues, and stated MCW s contract runs through September 30, She explained that the Board created a Legislative Priorities Committee for the 2017 legislative session and that the Committee met regularly to discuss issues of interest or concern to the RTAA. She pointed the Trustees to the RTAA Legislative Platform that was adopted by the Board of Trustees going into the session. Mr. Hicks presented a wrap up of the 2017 Nevada State Legislative Session. He referred the Trustees to the End of Session Legislative Report prepared by MCW that gives an overview of the issues followed by the RTAA. He spoke generally about the legislative session, the party line make up, vetoes that occurred and the many bills that died. Mr. Hicks stated there were many big issues being taken up during the session and that most were not germane to what the Airport was concerned about. Mr. Hicks said the issues that were

8 Page 8 of 10 closely followed were the ones related to the 11 guiding principles that were laid out in the Legislative Platform. He said it was very helpful to have the platform and MCW organized their efforts around those broad issues. Mr. Hicks touched on a few of the bills including SB 442 an omnibus economic development bill, that passed and makes various changes to the existing economic development tools for the Governor s Office of Economic Development (GOED). Firearms related bills were initially of concern but at the end of the day there was nothing of concern to the Airport. Several energy related bills passed and going forward there will be big decisions considered especially with the issue of deregulation of the NV Energy monopoly in the State. Air Service was a top priority of the Board and the Legislative Priorities Committee and the bill the Airport was supporting, SB 363, did not pass. Going forward, the Legislative Priorities Committee will be strategizing on how to get an air service bill passed in the next legislative session and that Reno-Tahoe International Airport would take the leadership role on the bill, tailoring it to what would be most helpful to this Airport. In response to a comment by Trustee Carasali, Mr. Hicks said there is a general idea of who will be in leadership positions but it will not be determined until after the election in November Trustee Carasali stressed it is important to start working on the air service strategy today. Mr. Hicks continued saying that unmanned aerial systems has been a priority of the Airport and a resolution in support of those efforts was approved by the Legislature. He said there was not a lot of substantive legislation on that issue this session, but the resolution will be helpful going forward to show intent by the Legislature to support the industry. The Flood Management Project legislation was an issue MCW was very involved with, having gotten the amendment added regarding the non-voting role of the RTAA on the committee. Mr. Hicks mentioned there were an enormous amount of bills related to public employment, public works and purchasing. The bills changed significantly throughout the session and MCW was monitoring anything that would potentially have a financial impact on the Airport Authority. He said the things that the Airport was concerned about were generally resolved in one way or another with limited impact on the RTAA. Mr. Hicks ended by saying MCW would continue working with the Legislative Priorities Committee and air service will be a priority. Chair Carey thanked Mr. Hicks for his stewardship of the Airport s legislative affairs and his informative work. He also thanked the members of the Legislative Priorities Committee for their good work during the 120-day legislative session. b. Upcoming Board Meeting/RTAA Event Schedule Chair Carey referred to the schedule of upcoming meetings and RTAA events. Ms. Mora highlighted the 5th Annual Tenant/Employee Appreciation Luncheon coming up on August 24th. She said it is attended by a cross section of tenants and employees across the Airport and she encouraged all Trustees to attend the event. i. Board/Committee Meetings 1. August 7, :30 pm RTIA Users Committee Meeting 2. August 8, :00 am Finance and Business Development Committee Meeting

9 Page 9 of August 8, :00 am Planning and Construction Committee Meeting 4. August 10, :00 am Board of Trustees Meeting 5. September 12, :00 am Finance and Business Development Committee Meeting 6. September 12, :00 am Planning and Construction Committee Meeting 7. September 14, :00 am Board of Trustees Meeting 8. September 21, :30 pm Community Outreach Committee Meeting ii. RTAA Events 1. August 24, :30 am 5th Annual Tenant/Employee Appreciation Luncheon 2. December 16, :00 pm Holiday Party c. President/CEO s Report Ms. Mora welcomed and congratulated the new Trustees on their appointments. She also congratulated Trustee Carasali on continuing in another term on the Board. Finally, Ms. Mora congratulated the new Chairman. Ms. Mora referred the Trustees to the written President/CEO Report in their Board binders and offered to answer any questions the Trustees may have about the information included. Ms. Mora specifically mentioned the August 15th community workshop conducted by the Airport Economic Development team for the upcoming concession opportunity for food and beverage and retail businesses to open a concession on the Airport. It was an outreach to the local community and was attended by over 30 people. Trustee Carasali asked if there is any idea of what the membership fee will be for the new passenger lounge opening this winter. Ms. Mora responded by saying that if you are a platinum American Express (AMX) cardholder, entry into the Escape Lounge is free. If not a platinum AMX cardholder, as Trustees, there will be a $25 fee upon entry to the lounge. Members of the public who book ahead will pay $40, or $45 at the door. These fees are on a per visit basis and include food and drink. d. General Board Comments, Questions, and Items for Future Board Meetings Chair Carey asked if the Trustees had any comments, questions, or items for future Board meetings. He reminded the Trustees of the Board Committee vacancy information included in the green folders and asked Trustees to respond to the Clerk of the Board with their preferences by July 21st. He also noted the August 3 and 4 dates of the upcoming new Trustee Orientation Program. Trustee Carasali commented on his role as the RSCVA Liaison. Ann Morgan, General Counsel, reminded the Board that Trustee Carasali has another year to complete his term as the RSCVA Liaison. There were no further comments, questions, or future Board items raised by the Trustees. 14. PUBLIC COMMENT, if any Limited to Three Minutes per Person None.

10 Page 10 of ADJOURNMENT There being no further business, the meeting was adjourned at 11:10 am. Chair Shaun Carey ATTEST: Secretary