-4616- MEETING OF THE BOARD OF GOVERNORS December 23, 2014 The Lehigh-Northampton Airport Authority Board of Governors convened a regular meeting of the Board at 12 noon on December 23, 2014 at the Lehigh Valley International Airport. Members Present: Jane Baker, Anne Baum, William Berger, Anthony Boyle, Dean Browning, Robert Buesing, Bert Daday, Michael Dowd, Jeffrey Matzkin, Ed Pawlowski, T.J. Rooney, Michael Schware (via phone), Marc Troutman and Christopher Werley (via phone). Members Absent: David Haines. Staff members present: Charles Everett, Tom Stoudt, Todd Quann, Ryan Meyer, Darren Betters, Paula Bonstein, Ashley Hari and Sylvette Rivera. Also in attendance: Solicitor Robert Donchez. Chairman, Marc Troutman presided and called the meeting to order at 12 p.m. After the Pledge of Allegiance, the Chairman called the roll and noted that a quorum was present. PUBLIC COMMENT: No members of the public offered Public Comment. APPROVAL OF MINUTES: Minutes of the November 25, 2014 Board meeting were reviewed. (#4951) RESOLVED, that the minutes of the November 25, 2014 be accepted. TREASURER S REPORT: William Berger submitted the monthly Treasurer s Report for the period ending November 2014, a copy of this report was provided to the Board of Governors. In the month of November 2014, LVIA s Net Operating Revenues was $15,335,657. LVIA Operating Expenses was ($10,972,305). LVIA Net Income (Loss) was $583,259. Queen City Income (Loss) was $121,307. Braden Airpark Income (Loss) was ($31,253). The Operating Account balance is $1,216,165 and PFC account had a balance of $216,289.
-4617- (#4952) RESOLVED, that the Lehigh-Northampton Airport Authority Treasurer s Report for November 2014 be accepted as presented. REPORTS OF COMMITTEES, OFFICERS AND STAFF: A. Business & Finance Committee Mike Dowd, Chairman / Todd Quann 1.) Amendment to Airline Rates & Charges Resolution Committee Chair, Mike Dowd reported that there is a resolution in place determining the airline rates and charges. The Authority is looking to amend the resolution and add a Turn Rate to the rate methodology. This would bring the process into compliance with the regulations and give air carriers the option to pay for their rates and charges either individually or in an all-inclusive Turn-Rate. There will be no financial impact. (#4953) RESOLVED, that the Lehigh-Northampton Airport Authority approve the Amendment to Resolution #3620 Establishing Airline Rates & Charges. 2.) Approval FY 2015 Operating Budget Committee Chair, Mike Dowd reported on the FY 2015 Operating Budget. It has been reviewed by the Committee and approved unanimously. He noted that the non-union employees will have a 4% contribution towards health insurance. The contribution for union employees varies per union. The goal is to increase the participation of all employees; union and non-union. Jane Baker stated that the average contribution at other employers is 10% to 12%. Lehigh County is 20% across the board. Bob Buesing stated that his employees have a 0% contribution rate. He has found that benefit gives the most loyalty to his company. There are companies that are paying health care for their employees. The financial projections for Queen City Airport and Braden Airpark have been added to the Board report. The Chamber of Commerce contribution has been reduced from $18,000 to $13,000. It is great exposure for the Airport Authority. Chairman, Marc Troutman stated that if you are not at the table, you are on the menu.
-4618- (#4954) RESOLVED, that the Lehigh-Northampton Airport Authority approve FY 2015 Operating Budget. C. Executive Committee - Marc Troutman, Chairman 1.) Nominating Committee Report Jane Baker reported that the Nominating Committee met and unanimously agreed upon the following: Marc Troutman as Chairman J. Michael Dowd as Vice Chairman William Berger as Secretary-Treasurer Ed Pawlowski as Representative of Lehigh County Bert Daday as Representative of Northampton County The Slate of Officers will be considered in January 2015. 2.) Appointment of By-Laws Committee Chairman, Marc Troutman reported on the By-Laws Committee. He has asked Mike Dowd to Chair the By-Laws Committee. He has also included Bill Berger and Jeffrey Matzkin. 3.) Approval to Amend By-Laws, Article VI Meeting of the Board Chairman, Marc Troutman stated that the Board has requested to move the monthly Board meetings to the last Tuesday of the month. The Notice of the Proposed Bylaw Amendment was sent via email to all members of the Board on November 19, 2014 and is also included in the packet. (#4955) RESOLVED, that the Lehigh-Northampton Airport Authority approve the Amendment to the By-Laws, Article VI and move the Monthly Board meetings to the last Tuesday of the month. 4.) Approval of Voluntary Employee Early Retirement Incentive Program Staff reported on the Voluntary Employee Early Retirement Incentive Program. There are seven (7) eligible employees who are 60 years of age and 30 years of service. The total savings will be approximately $1 million over five (5) years. The package includes two (2) years of medical insurance.
-4619- (#4956) RESOLVED, that the Lehigh-Northampton Airport Authority approve the Voluntary Employee Early Retirement Incentive Program. DIRECTOR S REPORT: Charles Everett reported that LNAA continues negotiations with the Airline Use and Lease Agreement. The next meeting is scheduled for January 2015. The airport authority anticipates concluding these negotiations around May or June 2015. The final contract will be brought for Board approval. The Holiday concert series was successful. The following schools participated; Parkland High School, Southern Lehigh High School, Dieruff High School, Emmaus High School, East Hills Middle School, Easton Area Middle School and Salisbury Middle School. On Saturday, December 20, 2014, the Authority had a Holiday party with Dream Come True and Miracle League. Dream Come True enriches the lives of children who are seriously, chronically and/or terminally ill. Also, the Miracle League is for children and adults who have special needs. The Charity selection for 2014 was Third Street Alliance for Women and Children of Easton. The Authority adopted two (2) families. The authority will focus on generating some interest with the airlines to support the Dream Come True flight initiative in FY 2015. Chairman, Marc Troutman announced that Robert Buesing is completing his term this month and during his term he has been Chair of the Economic Development Committee and Vice Chair of the Board. His background is in travel and tourism. He has placed much effort on different initiatives. On behalf of the Board and Staff members, he was presented with a plaque that recognizes his contributions. Robert Buesing thanked John Stoffa who appointed him four (4) years ago. He thanked the previous and current Chairman of the Board David Haines, Tony Iannelli and Marc Troutman. He recognized the Executive Director s Larry Krauter and Charles Everett. He thanked the Management team. His term was filled with road bumps, surprises and land mines. His hat goes off to each Board member cause no matter what happened, the Board kept trekking along. In his opinion, not everyone agreed with him, but everyone knew where he stood with any particular issue. What makes this a great Board is that it is filled with diverse backgrounds and together make LNAA viable. This has been the toughest Board he has ever sat on. In 2014, he has travelled 131,000 miles out of LVIA. He believes his replacement will be a good fit once he gets his feet on the ground. He will be a good asset to the Board. SOLICITOR S REPORT: Solicitor Robert Donchez stated that his report will be covered in Executive Session.
-4620- EXECUTIVE SESSION: Upon a motion duly made and seconded, the Board went into Executive Session at 12:35 p.m. for anticipated claims regarding real estate, the Bhasin v. LNAA litigation matter in the Eastern District of Pennsylvania and personnel matters. ADJOURNMENT Upon a motion duly made and seconded, the Board came out of Executive Session and adjourned at 1:05 p.m. Recording Secretary