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 Wolfe called the meeting to order at 5:00 p.m. and led the Pledge of Allegiance, and then read the Authority s Code of Ethics statement. No conflicts of interest or potential conflicts of interest were identified at that time. Airport Authority members present were; Thomas Wolfe, Chairman; Carter Lambeth, Vice- Chairman; Dan Hickman, Secretary; Tom Barber, Jonathan Crane, Donna Girardot, and John Perritt. Also present were Julie Wilsey, Airport Director; Gary Broughton, Deputy Airport Director; Robert Campbell, Finance Director; Whitney Prease, Facilities Director; Carol LeTellier, Business Development Director; Rose Davis, Executive Assistant; and Wanda Copley, New Hanover County Attorney. Guests present included Steve Bright and Amy McLane, Talbert & Bright, Inc.; Commissioner Jonathan Barfield and Albert Eby, Cape Fear Public Transportation Authority; Bill Cherry, Vince Tryer, Sam Toler, Jerry Cousins, Tom Goodwin, Chris Stephens, Mike Kozlosky, WMPO; Josh Lopez, Mark Ledermann, Ryan Evans, and Susanna Black, WECT. Chairman Wolfe shared with the Authority a thank you card received from ILM employees. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Public Meeting on December 7, 2016. Mr. Hickman MOVED, SECONDED by Mr. Barber, to approve the minutes of the December 7, 2016 Airport Authority Meetings as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. SPECIAL GUESTS Chairman Wolfe introduced Commissioner Barfield and Albert Eby, Executive Director of the Cape Fear Public Transportation Authority, who addressed the Airport Authority regarding WAVE Transit and their goal to provide public transportation service to the airport. Some discussion about the route, wait times, advertising, handicap accessibility, TSAR 1542 requirements, luggage requirements, demand for service to ILM, and the next steps in the process followed. PUBLIC COMMENTS FACILITIES Mr. Prease, having met with the Facilities committee, recommended the approval for the Airport Authority Chairman to award the Switchgear Replacement Project to the lowest qualified bidder/contractor NTE $132,000. ILM will pay for all project costs and the FAA will reimburse
Page 2 the airport 90% of the total cost by July 2017. Mr. Lambeth MOVED, SECONDED by Mr. Perritt to approve the Airport Authority Chairman to award the Switchgear Replacement Project as discussed above. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Prease, using slides for illustration, reviewed the status of the Hangar Taxilane Project, the LOB Hangar Project, and, the North Ramp Rehabilitation/Expansion Project. FINANCE REPORT Mr. Campbell reviewed ILM s November 2016 cash summary, monthly financial summary and November financials. In response to a question from Mr. Perritt, Mr. Campbell clarified a comment made regarding the TSA reimbursement contract for ILM s PSO officers who are required to be at the TSA checkpoint. This reimbursement contract ran out in October and has not yet been renewed by the TSA. Mr. Campbell reported on the audit results and the unqualified opinion that was received from the auditors noting there was only 1 finding and despite the fact that it was an error discovered, corrected and reported to the auditors by the ILM Finance Department, audit regulations required that it be disclosed in the final report. Mrs. Girardot noted that in the Report to the Airport Authority provided by the auditors her signature was absent from the Representation Letter. Mrs. Girardot noted for the record that she did, in fact, sign the document. Mrs. Girardot asked if the document could be amended to include the version she had signed. Mr. Campbell acknowledged the fact that Mrs. Girardot had signed the document and it was sent to the auditors. Mr. Campbell agreed to look into the matter. Mr. Campbell recommended the approval of the amended Contract with RSM for the FY16 Audit of Accounts. The original contract amount was $40,000 and the amended contract amount is $61,875. Discussion followed regarding the circumstances which caused the increase in the audit bill. During the discussion Dr. Crane MOVED that the Authority members should be able to see review all RFPs before they go out, there being no second, the motion died. (corrected February 1, 2017). Following this discussion, Mr. Perritt MOVED, Mr. Lambeth AMENDED, and Mr. Barber SECONDED the motion to approve the amended Contract with RSM for the FY16 Audit of Accounts in the amount of $61,875 and directed Mr. Campbell to locate funds and resources in the current budget to cover the additional amount of the auditors invoice. The MOTION WAS APPROVED UNANIMOUSLY. GENERAL AVIATION Mr. Barber, using slides for illustration, shared information regarding the GA Committee s hangar feasibility study comparing several construction scenarios including information from Air Park, the Rock Hill Study, WK Dickson and Air Wilmington. Some discussion followed.
Page 3 Mr. Broughton recommended the approval of a month-to-month lease to Air Wilmington for approximately 132,720 SF of ramp space at a lease rate of $.30/SF. After some discussion, Mr. Barber MOVED, SECONDED by Mr. Hickman to approve the lease with Air Wilmington as recommended. The MOTION WAS APPROVED UNANIMOUSLY. GOVERNMENT & PGA Golf Mrs. Girardot reported to the Authority that the American Association of Airport Executives are feeling hopeful about the new administration lifting the PFC cap which is good news to ILM. Mrs. Girardot noted that it wasn t the Obama administration that was opposing lifting the PFC cap, it was Congress, and the makeup of the new Congress really hasn t changed significantly. Mrs. Girardot advised that the Special Use Permit that was scheduled for vote at the Planning Board meeting on January 5 th will be tabled until the February 2 nd meeting. Mrs. Girardot updated the Authority on the Cooper administration appointments of Secretaries and Caretakers: James Trogdon, NCDOT Secretary; Michael Regan, DEQ Secretary; Dempsey Benton, Interim DHHS Secretary; Britt Cobb, Secretary at the Department of Administration; George Sherrill, Commerce; Bill Ross, NC Department of Environment; Kevin Cherry, Natural and Cultural Resources; Linda Hayes, Public Safety; Ron Penny, Revenue; and Mike Holder, Transportation. Mr. Broughton reported that there is no specific action for the airport to take at this time in preparation for the PGA Tournament but noted that Gwen Crow, with Wells Fargo, reminded staff that there is a $7.5M purse and the estimated economic impact to the Wilmington area would be between $40M and $60M. Mr. Broughton shared that Wells Fargo will be bringing in a lot of their own volunteers. Mrs. Wilsey requested that staff look at extra training, customer service and otherwise, in cooperation with the CVB, for our own volunteers and staff in preparation for the increased traffic. Mr. Cherry stated that according to Wells Fargo, they aren t anticipating that many corporate airplanes and Mr. Broughton confirmed that most of the traffic will be commercial. Mr. Wolfe recognized and thanked Mrs. Girardot for her work on the Special Use Permit and the permitted uses for the airport industrial park stating that her leadership has led to a full representation of the industries that can now be brought into the business park. HUMAN RESOURCES Mrs. Wilsey advised that our HVAC technician has resigned to open his own business so that position is currently vacant. Mrs. Wilsey reported that the Martin Luther King holiday will now be observed on the actual MLK day, January 16, 2017, rather than being a floating holiday as it has been in the past. MARKETING Ms. LeTellier reported that there are a number of customer surveys and public input campaigns underway from which to glean information in order to tweak the marketing budget for
Page 4 2017/2018. Ms. LeTellier shared that the Community Survey closed with a total of 1277 responses. Mr. Wolfe recognized Ms. LeTellier for the excellent work she did on the Art Gallery opening on December 14 th. PLANNING & DEVELOPMENT/TERMINAL EXPANSION Ms. LeTellier reported that Toshiba International is open for business and paying rent in the Flex Building and Scratch on 23 rd is under construction with a tentative grand opening in late February/early March. OPERATIONS REPORT Mr. Broughton reported that the Christmas holiday loads for ILM s Christmas rush, December 22 January 2, indicate ILM enplaned 12,867 passengers, which is an 8% increase over the same period in 2015; and the parking revenue was up 9.75% for calendar year 2016. Mr. Bielec, with USA Parking, reported to Mr. Broughton that while the July 1, 2015 rate increase accounts for some of the growth, ILM still realized an overall increase and so far FY2017 revenues are tracking up at 2% growth. DIRECTOR S REPORT Mrs. Wilsey reviewed the list of Top 10 accomplishments at ILM, which included: Hosted First NCAA Conference In Wilmington Ground Transportation Agreement with UBER Live Oak Bank Leased Site for Corporate Hangar Air Wilmington Completed 21,000 SF Hangar 2 New Tenants for Flex Building o Toshiba Opened 12/16 o Construction Started for Scratch on 23rd State and FAA Grants Secured to Complete GA Master Plan and North Ramp Redevelopment First SASO - Seahawk Aviation Opened in October LED Upgrade Projects 1) Main Terminal and 2) all Taxiways Important Customer Service Initiatives o New Art Gallery (Partnership with Wilmington Arts Council) o Putting Green o Car Seat Inspection Station (1st airport in NC) Important 2016 Stats: o $1.6 Billion in Economic Impact (up from $641 Million) o 106 Based Airplanes (up from 99) o Unofficially: Exceeded CY15 Enplanements and Total Passenger Mrs. Wilsey shared the 2016 Organization Goals with the Authority asking for their input and priorities in developing the 2017 Organization Goals.
Page 5 Mrs. Wilsey also reminded the Authority of the January 2018 deadline for all states to have Real ID for TSA compliance when flying. North Carolina s licenses are compliant but there are still 8 states that are not: Kentucky, Maine, Minnesota, Missouri, Montana, Oklahoma, Pennsylvania, Washington and South Carolina. UNFINISHED BUSINESS NEW BUSINESS ADJOURNMENT There being no further business to come before the Board, Chairman Wolfe adjourned the meeting at 6:28 p.m. Prepared by: Rose M. Davis Respectfully Submitted: Dan Hickman, Secretary Date of Approval: February 1, 2017