Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR MEETING CALL TO ORDER The New Hanover County Airport Authority met on Wednesday,, at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Chairman Lambeth called the meeting to order at 5:00 p.m. Vice-Chairman Hickman led the Pledge of Allegiance and Chairman Lambeth 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; Carter Lambeth, Chairman; Dan Hickman, Vice- Chairman; Donna Girardot, Secretary; Tom Barber, W. Lee Williams, and Thomas Wolfe. Also present were Julie Wilsey, Airport Director; Gary Broughton, Deputy Director; Robert Campbell, Finance Director; Carol LeTellier, Business Development Director; Granseur Dick, Planning and Development Director; Whitney Prease, Facilities Manager; Rose Davis, Executive Assistant; and Wanda Copley, New Hanover County Attorney. Guests present included Steve Bright and Amy McLane, Talbert & Bright, Inc.; Lou Cannon, Charles Craft, and Lars Isaacson, RSM, LLP; Ryan Evans, Tom Goodwin, and Bill Cherry. Mr. Stovall was absent from this meeting. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Meeting on November 1, 2017 and the Special Meeting on November 17, 2017. Mrs. Girardot MOVED, SECONDED by Mr. Barber, to approve the minutes of the November 1, 2017 and November 17, 2017 Airport Authority Meetings as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Stovall was absent. PUBLIC COMMENTS None. FACILITIES & TERMINAL EXPANSION Mr. Dick recommended the approval of the following action items: a. Terminal Expansion Design- Approve work authorization (WA) in the amount of $1,981,552.00 for Talbert & Bright, Inc. for Terminal Improvements Phase 1 Design Phase Services. This work authorization covers Pre-design/ Programming and Schematic Design (30%) phases for all of Expansion Phase 1 areas along with Design Development, Construction Documents and Bidding & Permitting phase services for Part 1A only. This work authorization has been found to be below an Independent Fee Estimate. Design will be 90% funded by the FAA AIP grant program with a 10% local match. After some discussion, Mr. Barber MOVED, SECONDED by Mr. Hickman to approve the work authorization (WA) in the amount of $1,981,552.00 for Talbert & Bright, Inc. for Terminal Improvements Phase 1 Design Phase Services. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Stovall was absent.
Page 2 b. AVIS Consolidated Rental Car Facility Approve a contract with Bordeaux Construction Company, Inc. NTE $2,300,000 for the construction of the AVIS Consolidated Rental Car Facility. Construction includes grading, paving, vertical construction, drainage and utilities. Project is funded through the CFC Fund. After some discussion, Mr. Williams MOVED, SECONDED by Mrs. Girardot to approve the contract with Bordeaux Construction Company, Inc. for the AVIS Consolidated Rental Car Facility. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Stovall was absent. c. Runway & Taxiway Marking Approve a contract with HASCO, Inc. NTE $50,000 for the cleaning and painting of pavement and taxiway markings. Project will be funded through the General Fund. After some discussion, Mr. Wolfe MOVED, SECONDED by Mr. Barber to approve contract with HASCO, Inc. for Runway and Taxiway marking. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Stovall was absent. Mr. Dick reviewed the status of the following facilities projects: Wildlife Hazard & Critical Area Mitigation; Perimeter Fence and Wet Detention Basin and Ditch. FINANCE & HUMAN RESOURCES Mr. Campbell reviewed ILM s October 2017 cash summary, monthly financial summary and October financials. Mr. Campbell noted that revenue was up almost 10% above the budgeted amount which was aided by increased fuel flowage; parking revenue and exits; passenger traffic; and commissions. Mr. Campbell noted that expenses continue to be under budget but that is due to timing differences. As projects get under way, those differences will decrease. Mr. Campbell advised that next month the Authority will see the $200,000 Letter of Credit regarding the new United Airlines Service in the cash balance. BUSINESS DEVELOPMENT Ms. LeTellier reported to the Authority that as a result of the announcement of the United Airlines service, ILM received a lot of coverage in both print and TV with a reach of 11.58 million people, and if ILM had to pay for that coverage, it would have cost $107,156. Ms. LeTellier also reported that ILM is helping the Department of Transportation spread information about the Real ID by sending over 200 flyers to the Global Entry event at the Customs facility and placing flyers at the information desk as a passenger service. GOVERNMENT Mrs. Girardot reported that she and Mrs. Wilsey met with Secretary Trogdon in Wilmington on November 27 th. During that meeting, Secretary Trogdon did say his number one priority is to improve project delivery for NCDOT, by getting the appropriated funds into the projects. Mrs. Girardot shared that Secretary Trogdon also talked about specific Wilmington projects and a movement by the Chamber and MPO to pass resolutions to rectify NC Federal Funds being
Page 3 spent on I-74, which is detrimental to NC by taking traffic to SC ports and beaches. Mrs. Girardot stated that she and Mrs. Wilsey thanked the Secretary and the NCDOT for their support of ILM and the other 72 NC airports during this last General Assembly session. Mrs. Girardot also noted that there may be an opportunity for an incentive to speed up the delivery of the jet bridge. RSM, LLP FY17 AUDIT REVIEW Mr. Campbell introduced the representatives from RSM, LLP: Mr. Lou Cannon, Mr. Charles Craft and Mr. Lars Isaacson. Mr. Craft addressed the Authority and noted it was a privilege for the firm to serve ILM and that ILM is a valuable client of RSM, LLP. Copies of the audit report where passed out to the Authority. Mr. Cannon gave an overview of the financial statements and summarized certain matters required by professional standards to be communicated to the Authority in their oversight responsibility for New Hanover County Airport Authority s financial reporting process. Mr. Cannon then reviewed the Summary of Recorded Audit Adjustments and the Summary of Uncorrected Misstatements. Mr. Cannon noted that there was nothing extraordinary about these adjustments and misstatements as they are common in audit engagements. Mr. Cannon explained the Letter Communicating Internal Control Deficiencies Over Financial Reporting. He pointed out that no deficiencies noted were determined to constitute significant deficiencies or material weaknesses. Finally, Mr. Cannon gave a brief explanation of the Representation letter. OPERATIONS & GENERAL AVIATION Mr. Broughton reported on American s DFW holiday service noting that their booking factor was just over 54%, as of Monday, December 4 th. Out of 760 seats, that is 413 customers and of that, 242 are connecting on beyond Dallas. Mr. Broughton shared that with the holiday loads getting heavier day by day, Mr. Bodnar, American s Station Manager, anticipates seeing improved load factors on these DFW flights. Mr. Broughton noted that United has an RFP out for their ground handling. Mr. Broughton shared a customer complaint from Mr. Gus Hertz regarding Air Wilmington s facility fee of $15 noting that Mr. Hertz feels that $10 would be more reasonable. Mr. Hertz asked that the Authority receive a copy of his complaint, which also included a request that the airport provide transient parking, which Mr. Broughton noted that ILM cannot do because of security regulations. Mr. Broughton stated that ILM does not dictate what our tenants charge. Mr. Hertz stated in his complaint that ILM needs to be accessible to pilots of small planes and Mr. Broughton noted that there are currently 67 single engine aircraft based at ILM. Staff recommends no action. Chairman Lambeth complimented Mr. Cherry on how he handled the complaint and on how well Air Wilmington services his small airplane.
Page 4 No action was taken. DIRECTOR S REPORT Mrs. Wilsey updated the Authority on preparations for the United launch in 5 months noting that the United facilities team will be visiting ILM on Tuesday, December 12 th. Mrs. McNally has a draft plan for the $100,000 of marketing for Chicago and United and that should be approved by United within the next few days. The letter of credit should be ready by the end of next week and staff has until December 20 th to deliver that to United. Mrs. Wilsey noted that the staff has stepped up in a short period of time and is rolling out a very strong welcome to United. The community is still excited and we are moving ahead. Mrs. Wilsey shared that the SCASD grant extension request has been filed and should be approved in the next month, extending that agreement to January of 2019. Every one of the community partners has verified their commitment to the $200,000 local match. The City, County and a few others are going to wait until closer to the May date for payment. Mrs. Wilsey updated the Authority on ILM s United Way campaign noting that staff raised $10,124, with a goal of $12,000. Mrs. Wilsey shared that she will be on The Big Talker Radio at 7:30 am, Wednesday, December 13 with Joe Catenacci, talking about the Dallas flight and the United launch. This is another opportunity to get more people on the flight to Dallas to help our partner American and to keep the excitement for United going. Mrs. Wilsey reported on ILM s Top 10 Accomplishments for 2017: 1. New Air Service Announcements: United Airlines to ORD and IAD in April 2018 with SCASD Grant American added Holiday flights to DFW from 12/23-1/7. 2. Airside improvements for the PGA Event were completed. 125 Players Arrived on Commercial Flights Commission on 200 Avis Rental Cars for Players and Caddies Delta upgraded 2 RJs to MD88 on Monday, May 8th (+198 seats) 87 flex jets delivered Players and Caddies Wells Fargo had 2 corporate jets stay all week; Four of players had their private jets stay all week Fuel flowage 30,000 gallons 3. Business Park revenue grew with new tenants: Scratch opened in May 2017 with base rent and a commission clause starting at 3 years. KBT and Shaw Realty opened in November 2017. Initial five year term generates $238,162 Budget Truck rental joined Avis in 23 rd Street Facility. ILM receives 9% commission on gross revenues.
Page 5 4. State funded taxi lane for Corporate Hangar area and Live Oak Bank Hangar completed in May. 5. South Ramp transitioned to North Ramp, supporting the GA Master Plan; ILM retained 8 tie down tenants; 4 obsolete hangars demolished for future redevelopment. 6. State Legislators appropriated new funding for Commercial Service Airports in Budget Bill; ILM allocated $5.9M in both 2017 and 2018 for Terminal Expansion Project. FAA has allocated $600,000 to lock ILM in as a non-hub airport for $20M in discretionary funding. 7. ILM s new logo, website, and TV commercial reinforces ILM s strategic rebranding as Coast on in, Coast on out 8. Terminal Expansion Project - Financial study completed; design started. 9. Federal lawsuit dismissed. 10. ILM promoted GA in the community with Fifi and UAV course. Both events had strong turn-out for host organizations. Mrs. Wilsey also shared some notable recognition for staff members and tenants: 1. Seth Porter was honored as 1 of 6 Port City Hero Officer of the Year. 2. Erin McNally was a WILMA Woman to Watch in Public Service Category. 3. Jean Lawler highlighted as UNCW Seahawk supporter during the 70 th Anniversary. 4. ILM employees recognized by AAAE for ANTN training program. 5. United Way of the Cape Fear recognized ILM s Outstanding Campaign Team (Dustin Stream and Erin McNally); also ILM ranked 8 th highest organization for leadership giving. 6. Rose Davis passed IPMA-HR certification exam. 7. Battle House celebrated 2 year anniversary at ILM; SeaHawk Aviation celebrated 1 year anniversary at ILM. 8. Wilmington Business Development hosted their Annual Meeting in LOB Hangar, highlighting the advantages of Corporate Aviation for business. Mrs. Wilsey advised that staff would not have the annual calendar year statistics until the middle of January but this could be another record year for enplanements and revenue passengers. Mrs. Wilsey noted that it has been a really good year at ILM. Chairman Lambeth complimented the staff on what a fine job they have done this year. UNFINISHED BUSINESS None.
Page 6 NEW BUSINESS None. ADJOURNMENT Mr. Williams MOVED, SECONDED by Mr. Wolfe that the meeting be adjourned. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Stovall was absent. There being no further business to come before the Board, Chairman Lambeth adjourned the meeting at 6:05 p.m. Prepared by: Rose M. Davis Respectfully Submitted: Donna Girardot, Secretary Date of Approval: February 7, 2018