BOARD OF TRUSTEES PRESIDENT/CEO Carol Chaplin, Chair Marily M. Mora, A.A.E. Jessica Sferrazza, Vice Chair EXECUTIVE VICE-PRESIDENT/COO Shaun Carey, Secretary Dean E. Schultz, A.A.E. Lisa Gianoli, Treasurer GENERAL COUNSEL Nat Carasali Ann Morgan, Fennemore Craig Daniel Farahi CLERK OF THE BOARD Richard Jay Jamie Kuryllo Jenifer Rose Art Sperber
AGENDA RENO-TAHOE AIRPORT AUTHORITY MEETING OF THE BOARD OF TRUSTEES
DATE & TIME: Thursday, January 9, 2020 9:00 a.m.
LOCATION: Reno-Tahoe International Airport - Reno, Nevada Board Room, Administrative Offices, Second Floor, Main Terminal Building
Items 5, 6, 8 and 9 are action items for the Board to consider. The Board may discuss a matter when it is brought up, but no action may be taken on it unless it has been specifically included on an agenda as an action item.
Public comment at the Board meeting will be allowed on agenda items as well as non-agenda items. Persons are invited to submit comments in writing on agenda items and/or attend and make comment on that item at the Board meeting. Requests to speak on a particular item should be submitted to the Clerk of the Board before the item is called by the Chair.
1. PLEDGE OF ALLEGIANCE
2. ROLL CALL
3. PUBLIC COMMENT (Limited to Three Minutes per Person)
4. PRESENTATIONS AND AWARDS a. Employee, Tenant and Special Recognition b. Introduction of Retired, New, and Promoted Employees c. Tenant Communication
5. APPROVAL OF MINUTES – December 12, 2019 Board Meeting
6. APPROVAL OF AGENDA
7. COMMITTEE AND LIAISON REPORTS
1. Finance and Business Development Committee 2. Planning and Construction Committee 3. Airport Noise Advisory Panel (ANAP) 4. Community Outreach Committee (COC) Board of Trustees January 9, 2020 Board Meeting Agenda Page 2 of 4
5. Stead Liaison 6. Air Service Liaison 7. RSCVA Board Liaison 8. The Chamber Reno Sparks Northern Nevada Liaison 9. Reno-Tahoe International Airport Users Committee 10. CEO Land Development Working Group
8. CONSENT ITEMS FOR BOARD ACTION
a. #20(01)-01 Authorization for the President/CEO to Award a Contract for the Purchase of One Truck-Mounted Cold Air Blower, to Wassau Equipment Company in the Amount of $393,749 and the Purchase of Four Years of Extended Warranty in the Amount of $19,050
b. #20(01)-02 Authorization for the President/CEO to Award a Contract for the Purchase of One Truck-Mounted Stripe Hog™ SK2000 Water Blasting System, Parts and Accessories, to Hog Technologies in the Amount of $521,785.29
c. #20(01)-03 Authorization for the President/CEO to Execute a One-Year Agreement Extension with Aviation Classics, Ltd to Lease Two Reno-Tahoe Airport Authority Owned Commercial Box Hangars, Outside Storage Area, Ramp Space, and Fuel Storage Tanks for the Purpose of Operating a Non- Exclusive Fixed Base Operation at the Reno-Stead Airport for a Minimum Contract Value of $114,026.28
d. #20(01)-04 Authorization for the President/CEO to Execute a Professional Services Agreement for Consultant Services for a Detailed Planning Study for a Potential Reno-Tahoe International Airport Ticketing Hall Expansion Project, with H+K Architects, in the Amount of $220,000
9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION
a. #20(01)-05 Authorization for the President/CEO to Negotiate Final Terms and Execute Supplemental Lease Agreement #00020 to the Transportation Security Administration Lease No. Hsts01-09-L-Ress04 to Amend the Leased Premises and Extend the Term for a Five Year Period with Five One-Year Options to Extend for 7,217 Square Feet of Terminal Space and 18 Employee Parking Spaces at the Reno-Tahoe International Airport for a Minimum Contract Value of $1,789,985
b. #20(01)-06 Adoption of Resolution No. 544: Amending Resolution No. 539 – A Resolution Adopting an Update to Policy No. 600-007 on the Financial Incentives for Airline and Dedicated Cargo Carriers
c. #20(01)-07 Approval of the Addition of Seven New Permanent Staff Positions for the Reno-Tahoe Airport Authority Personnel Complement Made Up of Three Airport Rescue Fire Fighting Battalion Chiefs, Two Airport Board of Trustees January 9, 2020 Board Meeting Agenda Page 3 of 4
Communications Dispatchers, One Airport Communication Supervisor and One Airport Duty Manager for a total of $1,044,078
d. #20(01)-08 Direction to Staff to develop an Emergency Management Team to prepare proposed Emergency Management Plan and Approval of Reno-Tahoe Airport Authority Chair’s Appointments to the Public Safety Committee, which committee shall convene only upon receipt of such Emergency Management Plan
10. ITEMS FOR BOARD INFORMATION AND DISCUSSION
a. Presentations i. Holiday Parking Results
b. Upcoming Meetings/RTAA Event Schedule i. Board/Committee Meetings 1. January 23, 2020 5:30 pm Community Outreach Committee Meeting 2. February 11, 2020 9:00 am Finance & Business Development Committee Meeting 3. February 11, 2020 9:30 am Planning & Construction Committee Meeting 4. February 13, 2020 9:00 am Board of Trustees Meeting 5. February 20, 2020 3:30 pm ANAP Meeting 6. March 10, 2020 9:00 am Finance & Business Development Committee Meeting 7. March 10, 2020 9:30 am Planning & Construction Committee Meeting 8. March 12, 2020 9:00 am Board of Trustees Meeting 9. March 19, 2020 5:30 pm Community Outreach Committee Meeting 10. April 7, 2020 9:00 am Finance & Business Development Committee Meeting 11. April 7, 2020 9:30 am Planning & Construction Committee Meeting 12. April 9, 2020 9:00 am Board of Trustees Meeting
ii. RTAA Events None.
c. President/CEO’s Report
d. General Board Comments, Questions and Items for Future Board/Committee Meetings
11. PUBLIC COMMENT (Limited to Three Minutes per Person)
12. ADJOURNMENT
Items will not necessarily be considered in the sequence listed. This meeting may be continued if all of the items are not covered in the time allowed. If the meeting is to be continued, the time and place will be announced at the end of the portion of the meeting to be continued.
Board of Trustees January 9, 2020 Board Meeting Agenda Page 4 of 4
SUPPORTING MATERIAL: The designated contact to obtain supporting material is Jamie Kuryllo, Clerk of the Board, P.O. Box 12490, Reno, NV, 89510 or 775-328-6410. Supporting material is also available at the Reno-Tahoe Airport (Administrative Offices) and at the scheduled meeting.
Members of the public who are disabled and require special accommodations or assistance at the meeting are requested to notify the Clerk of the Board in writing at P.O. Box 12490, Reno, Nevada 89510 or by calling (775) 328-6410 prior to the meeting date.
THIS AGENDA HAS BEEN POSTED AT THE FOLLOWING LOCATIONS: 1. Airport Authority Administrative Offices – 2001 E. Plumb Lane, Reno 3. Reno City Hall – One East First Street, Reno 2. Washoe County Administrative Offices – 1001 E. 9th Street, Reno 4. Sparks City Hall – 431 Prater Way, Sparks
*** These draft minutes have not yet been approved and are subject to revision at the next regularly scheduled meeting. ***
RENO-TAHOE AIRPORT AUTHORITY BOARD OF TRUSTEES MEETING MINUTES DECEMBER 12, 2019 9:00 A.M.
MEMBERS PRESENT ALSO PRESENT Carol Chaplin, Chair Marily M. Mora, A.A.E. Jessica Sferrazza, Vice Chair President/CEO Shaun Carey, Secretary Dean Schultz, A.A.E. Lisa Gianoli, Treasurer Executive Vice President/COO Nat Carasali Ann Morgan Daniel Farahi General Counsel Richard Jay Jamie Kuryllo Jenifer Rose Clerk of the Board Art Sperber
The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. Chair Chaplin called the meeting to order at 9:03 a.m. The Pledge of Allegiance was recited and roll was called.
3. PUBLIC COMMENT
None.
4. PRESENTATIONS AND AWARDS
a. Employee, Tenant and Special Recognitions
Chair Chaplin recognized Stephen Ascuaga, outgoing Chairman of the Regional Air Service Corporation, and welcomed incoming Chairman Andy Chapman.
Brian Kulpin, Vice President of Marketing and Public Affairs, presented Maryknoll Clark and Irish Bernardo of Avis Car Rental with the Plane Awesome Award for assisting a passenger who had locked her 8-month old infant in her car.
Marily Mora, President/CEO, thanked Administrative Fire Chief Mike Brown for his outstanding contributions to the Airport Authority during the last six months.
Ms. Mora recognized Jill Atkinson and Amanda Twitchell for being selected in top 40 for the Reno- Tahoe 20 under 40 awards.
b. Introduction of Retired, New and Promoted Employees
Marily Mora, President/CEO, congratulated Janet Freitas, Airport Security Specialist, who will be retiring from the Airport Authority on January 2, 2020.
Meeting of the Board of Trustees December 12, 2019 Minutes Page 2 of 9
Ms. Mora congratulated Geno Balon, Airport Communications Specialist, who will be retiring from the Airport Authority on January 5, 2020.
Dean Schultz, Executive Vice President/COO, introduced the following new employees: 1. Art Rempp, Manager of IT 2. Joanne Summer, Airport Communications Specialist 3. Kyle Lahrson, Airfield Technician I 4. Bernice Banks, Facilities Electrician Technician IV
c. Tenant Communication
None.
5. APPROVAL OF MINUTES – November 14, 2019 Board Meeting
On motion by Trustee Sperber, seconded by Trustee Gianoli, which motion duly carried by unanimous votes, the Board approved the minutes from the Board of Trustees meeting of November 14, 2019.
6. APPROVAL OF AGENDA
On motion by Trustee Jay, seconded by Trustee Rose, which motion duly carried by unanimous votes, the Board approved the December 12, 2019 Board of Trustees meeting agenda.
7. COMMITTEE AND LIAISON REPORTS
Committee and Liaison reports were given by: 1. Finance and Business Development Committee – Trustee Gianoli 2. Planning and Construction Committee – Trustee Sperber 3. Airport Noise Advisory Panel (ANAP) – Trustee Jay 4. Community Outreach Committee (COC) – Trustee Jay 5. Stead Liaison – Trustee Carey 6. Air Service Liaison – Trustee Carasali 7. RSCVA Board Liaison – Trustee Carasali 8. The Chamber Reno Sparks Northern Nevada Liaison – President/CEO Marily Mora 9. Reno-Tahoe International Airport Users Committee – Trustee Jay 10. Compensation Committee – Chair Chaplin 11. Transition Committee – Chair Chaplin
Trustee Sferrazza inquired as to how the Transition Committee was created and requested that this be discussed amongst the entire Board rather than at the Committee level. Ann Morgan, General Counsel, responded that the bylaws allow the Chair to create a temporary committee.
Trustee Carasali left the meeting.
8. CONSENT ITEMS FOR BOARD ACTION
a. #19(12)-61 Approval and Adoption of Changes to the Reno-Tahoe Airport Authority Meeting of the Board of Trustees December 12, 2019 Minutes Page 3 of 9
Fiscal Year 2019-2023 Strategic Plan Strategic Priority #3: Facilities for the Future and Strategic Priority #4: Safety & Security
On motion by Trustee Sperber, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-61 as follows:
Approved and adopted changes to the Reno-Tahoe Airport Authority Fiscal Year 2019-2023 Strategic Plan Strategic Priority #3: Facilities for the Future and Strategic Priority #4: Safety & Security.
b. #19(12)-62 Appointment of Travis Steven Jackson as a New Member of the Reno-Tahoe Airport Authority Community Outreach Committee
On motion by Trustee Sperber, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-62 as follows:
Appointed Travis Steven Jackson as a New Member of the Reno-Tahoe Airport Authority Community Outreach Committee.
c. #19(12)-63 Appointment of Lisa Ruggerio as a New Member of the Reno-Tahoe Airport Authority Community Outreach Committee
On motion by Trustee Sperber, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-63 as follows:
Appointed Lisa Ruggerio as a New Member of the Reno-Tahoe Airport Authority Community Outreach Committee.
d. #19(12)-64 Appointment of Chris Barrett as a New Member of the Reno-Tahoe Airport Authority Community Outreach Committee
On motion by Trustee Sperber, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-64 as follows:
Appointed Chris Barrett as a New Member of the Reno-Tahoe Airport Authority Community Outreach Committee.
9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION
a. #19(12)-65 Review and Discussion of President/CEO Marily Mora’s Performance for Fiscal Year 2018-2019 and Possible Action on Discretionary Bonus and Salary Adjustment for Fiscal Year 2019-2020
Ann Morgan, General Counsel, provided an overview of the Compensation Committee’s review of President/CEO Marily Mora’s performance for Fiscal Year 2018-2019 and their recommendation on a discretionary bonus and salary adjustment for Fiscal Year 2019-2020.
On motion by Trustee Carey, seconded by Trustee Gianoli, which motion was duly carried by Meeting of the Board of Trustees December 12, 2019 Minutes Page 4 of 9
unanimous votes, the Board approved Agenda Item #19(12)-65 as follows:
Approved discretionary bonus and salary adjustment for President/CEO Marily Mora for Fiscal Year 2019-2020.
b. #19(12)-66 Authorization for the President/CEO to Negotiate Final Terms and Execute a New Three Year Facility Maintenance Management Service Agreement with Three 1-Year Options to Extend with MVI Services, LLC, for the Reno-Tahoe International Airport Rental Car Quick Turnaround Area and Rental Car Ready- Return and Authorize Use of Customer Facility Charges for a Total Contract Value Not to Exceed $1,423,465
On motion by Trustee Sperber, seconded by Trustee Rose, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-66 as follows:
Authorized the President/CEO to negotiate final terms and execute a new three year facility maintenance management service agreement with three 1-year options to extend with MVI Services, LLC, for the Reno-Tahoe International Airport Rental Car Quick Turnaround Area and Rental Car Ready-Return and authorize use of Customer Facility Charges for a total contract value not to exceed $1,423,465.
c. #19(12)-67 Acceptance of the Comprehensive Annual Financial Report for Fiscal Year 2018- 2019
Leah Williams, Manager of Accounting, presented the results of the Comprehensive Annual Financial Report for Fiscal Year 2018-2019. Scott Nickerson, Partner at Crowe, commented that the RTAA’s financial statements fairly represent the financial position of the RTAA as of June 30, 2019, which is what is known as a “clean opinion.” Mr. Nickerson also spoke on trends he’s seen in Airports around the country.
Trustee Farahi questioned whether there are any best practices that the RTAA is not currently practicing. Mr. Nickerson encouraged staff to stay on top of GASB 87 and to continue to look into ways to improve processes through the use of technology.
Trustee Farahi questioned how the Airport could diversify their revenue sources. Mr. Nickerson responded that successful revenue sources he’s seen at other Airports include advertising, parking, cargo, solar and the use of public/private partnerships.
Trustee Farahi inquired about the 20% increase in administrative expenses. Ms. Williams responded that she will look into the increase and provide the Board with more detail.
Trustee Rose questioned the number of days cash on hand. Randy Carlton, Chief Financial Officer, responded that the Airport currently has cash over 500 days cash on hand which is in line with industry standards.
On motion by Trustee Gianoli, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-67 as follows:
Meeting of the Board of Trustees December 12, 2019 Minutes Page 5 of 9
Accepted the Comprehensive Annual Financial Report for Fiscal Year 2018-2019.
d. #19(12)-68 Authorization for the President/CEO to Amend the Exclusive Master Development Agreement with DP RTA Stead, LLC at the Reno-Stead Airport to Extend Construction Completion Date of the Project Site Entrance to December 31, 2020 on Condition of RTAA Staff Approval of Entrance
Ann Morgan, General Counsel, presented on a potential amendment to the Exclusive Master Development Agreement with DP RTA Stead, LLC.
Trustee Rose stated that her business, My Community Store, does business with Dermody Properties. However, since she does not technically work with DP RTA Stead, LCC, and that the revenue received is less than 1% of her company’s overall revenue, she did not need to recuse herself from the discussion or vote.
Trustee Sferrazza commented that the timing of the permitting and environmental review process is out of DP RTA Stead, LLC’s control and that she would be supportive of extending the agreement more than one year.
Mr. Dermody of DP RTA Stead, LLC, stated that he agreed that the timing of the permitting and review process is out of his control. He added that a longer extension would be welcomed but that he is comfortable with just the additional year.
Ann Morgan, General Counsel, commented that this is an action that can easily come back to the Board for another extension.
On motion by Trustee Rose, seconded by Trustee Carey, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-68 as follows:
Authorized the President/CEO to amend the Exclusive Master Development Agreement with DP RTA Stead, LLC at the Reno-Stead Airport to extend construction completion date of the project site entrance to December 31, 2020 on condition of RTAA staff approval of entrance.
e. #19(12)-69 Authorization for the President/CEO to Negotiate Final Terms and Execute a 50-Year Ground Lease on a Nine Acre Portion of a Parcel Located on Rock Boulevard and Mill Street for an Estimated Contract Value of $11,290,752, a Four- Year Development Option on an Eight Acre Parcel Located at Rock Boulevard South of Mill Street for an Estimated Contract Value of $40,242, a Five-Year Development Option on a Six Acre Portion of a Parcel Located on Rock Boulevard and Mill Street for an Estimated Contract Value of $39,204, an Interim Three-Year Fixed Based Operator Lease Located at 485 South Rock Boulevard for an Estimated Contract Value of $346,488 and an Interim Five-Year Fuel Storage Facility License at 335 ½ South Rock Boulevard for an Estimated Contract Value of $38,504 with Stellar Aviation Of Reno-Tahoe, LLC Based on the Proposal Submitted in Response to the Reno-Tahoe Airport Authority Request for Proposals for Development of Airport Sites at the Reno-Tahoe International Airport for Fixed Meeting of the Board of Trustees December 12, 2019 Minutes Page 6 of 9
Based Operator Facilities, Aircraft Hangars, Maintenance, Repair and Overhaul Operator and/or Other General Aviation Facilities
Aurora Ritter, Manager of Economic Development, presented on the numerous components of the agreement with Stellar Aviation.
Trustee Farahi commented that he is excited about the possibility of welcoming Stellar Aviation to Northern Nevada.
Trustee Sferrazza commented that she is also excited about the possibility of welcoming Stellar Aviation to RNO and would like to see JSX at the Airport as well.
Trustee Jay commented that this item was discussed at the RTIA Users Committee meeting on December 9, 2019 and was well received.
On motion by Trustee Jay, seconded by Trustee Farahi, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-69 as follows:
Authorized the President/CEO to negotiate final terms and execute a 50-year ground lease on a nine acre portion of a parcel located on Rock Boulevard and Mill Street for an estimated contract value of $11,290,752, a four-year development option on an eight acre parcel located at Rock Boulevard South of Mill Street for an estimated contract value of $40,242, a five-year development option on a six acre portion of a parcel located on Rock Boulevard and Mill Street for an estimated contract value of $39,204, an interim three-year fixed based operator lease located at 485 South Rock Boulevard for an estimated contract value of $346,488 and an interim five-year fuel storage facility license at 335 ½ South Rock Boulevard for an estimated contract value of $38,504 with Stellar Aviation Of Reno-Tahoe, LLC based on the proposal submitted in response to the Reno-Tahoe Airport Authority Request for Proposals for Development of Airport Sites at the Reno-Tahoe International Airport for Fixed Based Operator Facilities, Aircraft Hangars, Maintenance, Repair and Overhaul Operator and/or Other General Aviation Facilities.
f. #19(12)-70 Authorization for the President/CEO to Revise the Reno-Tahoe Airport Authority T-Hangar Leasing Guidelines to Allow the Leasing of General Aviation West T- Hangars at Reno-Tahoe International Airport through June 30, 2026 and to Revise the GA West T-Hangar Lease Rate Adjustment Cap From 3% to 2% and Allow the Leasing of GA West Box Hangars through June 30, 2027
Trustee Jay commented that this item was also discussed at the RTIA Users Committee meeting on December 9, 2019 and was well received.
On motion by Trustee Sferrazza, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved Agenda Item #19(12)-70 as follows:
Authorized the President/CEO to revise the Reno-Tahoe Airport Authority T-Hangar Leasing Guidelines to allow the leasing of General Aviation West T-Hangars at Reno-Tahoe International Airport through June 30, 2026 and to revise the GA West T-Hangar lease rate adjustment cap from 3% to 2% and allow the leasing of GA West Box Hangars through June 30, 2027. Meeting of the Board of Trustees December 12, 2019 Minutes Page 7 of 9
10. ITEMS FOR BOARD INFORMATION AND DISCUSSION
a. Presentations
i. Operations and Public Safety Enhancement Plan President/CEO Marily Mora, Vice President of Operations and Public Safety Mark Cameron, Administrative Fire Chief Mike Brown, Vice President of Human Resources Larry Harvey and Chief Financial Officer Randy Carlton, presented on an Operations and Public Safety Enhancement Plan. Trustee Carey and Trustee Sferrazza asked for more information on how dispatch currently operates. Chief Brown responded that members of the public that call 911 will reach a local 911 PSAP Center and then be transferred to the Airport Communications Center. Internal staff is encouraged to call 6999 to reach the Airport Communications Center directly. Staff is currently examining ways to make the call transfer process more efficient. Trustee Carey commented that it is clear that the Airport is lacking the proper technology and personnel, and needs to close the gap in those deficiencies. Trustee Rose inquired as to whether this additional staff would have been helpful during the Senator Warren situation. Staff responded that this additional staff would not likely have helped due to the nature and location of the situation. However, staff and tenants have now been trained to report any suspicious activity to the Airport Communications Center at 6999 to facilitate a better response. Trustee Sferrazza requested that a Public Safety Committee be formed immediately. Trustee Rose and Trustee Sperber agreed with this request. Trustee Carey asked about any other positions that were discussed and which departments were involved in these discussions. Trustee Carey commented on the importance of adding an Emergency Manager position. Mr. Harvey and Ms. Mora responded that the positions discussed in today’s presentation were immediate need positions, and that there will be more staffing discussions during the mid-year budget review and while preparing next year’s budget. It is important to balance any additional expenditures with its affect on airline rates and charges. Trustee Carey commented about safety discussions he attempted to have at the Board retreat. Ms. Mora responded that there is a mid-year budget request for a consultant to look into the concerns Trustee Carey raised. Trustee Farahi commented that staff has his full support and that he would like to be continuously educated on the process of determining the correct staffing structure for public safety. Trustee Sferrazza encouraged staff to submit public safety grant requests. Chief Brown responded that staff is currently brainstorming federal, state and local grant opportunities. Trustee Sferrazza asked whether the positions discussed today are the only immediate need positions, as it seemed to only be addressing management needs. Chief Brown responded that Chief Tongate is having more discussions on the ARFF staffing structure, as he comes with many years of Airport experience. Meeting of the Board of Trustees December 12, 2019 Minutes Page 8 of 9
Trustee Sferrazza inquired as to why the Airport Police Department was not discussed today. Chief Brown responded that he looked at public safety as a whole. Airport Police Department staff responded that they share the same concerns as fire in regards to dispatch, staffing levels and equipment. Trustee Rose thanked staff for their time, energy and urgency on this matter. Trustee Jay left the meeting. b. Upcoming Meetings/RTAA Event Schedule
i. Board/Committee Meetings 1. January 7, 2020 9:00 am Finance & Business Development Committee Meeting 2. January 7, 2020 9:30 am Planning & Construction Committee Meeting 3. January 9, 2020 9:00 am Board of Trustees Meeting 4. January 23, 2020 5:30 pm Community Outreach Committee Meeting 5. February 11, 2020 9:00 am Finance & Business Development Committee Meeting 6. February 11, 2020 9:30 am Planning & Construction Committee Meeting 7. February 13, 2020 9:00 am Board of Trustees Meeting 8. February 20, 2020 3:30 pm ANAP Meeting 9. March 10, 2020 9:00 am Finance & Business Development Committee Meeting 10. March 10, 2020 9:30 am Planning & Construction Committee Meeting 11. March 12, 2020 9:00 am Board of Trustees Meeting
ii. RTAA Events 1. December 13, 2019 6:00 pm RTAA Annual Holiday Party at the Atlantis
c. President/CEO’s Report
Marily Mora, President/CEO, referred Trustees to her written report in their Board binders.
Ben Carpenter, Manager of Landside Operations, provided an overview of Thanksgiving and Christmas parking.
Trustee Farahi requested that staff look into parking guidance systems that will provide staff and travelers with real-time parking information. Marily Mora, President/CEO, responded that this topic will be agendized at a future Planning & Construction Committee meeting.
d. General Board Comments, Questions, and Items for Future Board Meetings
Items for Future Board Meetings: • Public Safety Committee appointments • Parking guidance systems • CEO selection process • Options for the diversification of revenue sources (ex: solar)
Meeting of the Board of Trustees December 12, 2019 Minutes Page 9 of 9
11. PUBLIC COMMENT
None.
12. ADJOURNMENT
There being no further business, Chair Chaplin adjourned the meeting at 12:37 p.m.
______Chair Carol Chaplin ATTEST:
______Secretary Shaun Carey
*** These draft minutes have not yet been approved and are subject to revision at the next regularly scheduled meeting. ***
wemGweyou Reno-Tahoe •Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-01 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Manly Mora, A.A.E., President/CEO n'teti SUBJECT: Authorization for the President/CEO to Award a Contract for the Purchase of One Truck-Mounted Cold Air Blower, to Wassau Equipment Company in the Amount of $393,749 and the Purchase of Four Years of Extended Warranty in the Amount of $19,050
Staff ecommendatio Staff recommends that the Board authorize the President/CEO to award a contract for the purchase of one truck-mounted cold air blower, with Wassau Equipment Company, in the amount of $393,749 and the purchase of four additional years of warranty for $19,050.
Purpose The purpose of this action is to obtain Board of Trustee approval and authorization for the President/CEO to authorize the award of a contract for the purchase of a truck-mounted cold air blower that will be utilized for snow and Foreign Object Damage (FOD) removal operations at the Reno-Tahoe International Airport (RNO).
This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #1 — Air Service & Cargo, Strategic Priority # 2 — General Aviation, Strategic Priority # 4 — Safety and Security and Strategic Priority # 6 - Customer Service, as adopted in the Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan. ackground
The equipment recommended for this procurement is a state-of-the-art, cab-over chassis truck with a rear-mounted, cold air blower powered by an auxiliary engine that supplies 19,500 cubic feet per minute of air from the air nozzle, traveling at 525 miles per hour to blow snow, ice and/or debris off of paved surfaces. Modern airport equipment is also much more environmentally friendly as a result of the latest emissions technology integrated into current diesel engines.
A truck-mounted cold air blower is an essential piece of airfield equipment that is used on a weekly basis for clearing runways, taxiways, shoulders and roadway areas. Cold air blowers are unique pieces of equipment that are only used in airport and railway work.
The primary function for this highly specialized piece of equipment will be Foreign Object Debris (FOD) removal and snow removal on the Airport Operations Area (AOA), specifically the runways, taxiways, Truck-Mounted Cold Air Blower Purchase # 20(01)-01 January 9, 2020 Board Meeting Page 2 of 5 and terminal ramp areas at RNO. As defined in the Federal Aviation Administration (FAA) Advisory Circular (AC) 150/5210-24, Foreign Object Debris (FOD) Management, FOD is any object, live or not, located in an inappropriate location in the airport environment that has the capacity to injure airport or air carrier personnel and damage aircraft.
FOD must regularly be removed from paved surfaces at RNO and can either be recovered or displaced. Sweepers are an example of the type of machines used to recover FOD. Sweepers pick up the debris and place it into a hopper for remote disposal. This is the favored method for areas contaminated with trash or areas that are surrounded by buildings, aircraft and other assets.
Displacement is performed by cold air blowers, which simply blow debris from the paved surfaces to unpaved areas. This is the preferred process for rapid FOD removal on runways, taxiways, shoulders and perimeter roadways.
Advantages of the displacement method are:
• No hopper to dump • A larger cleaning swath • Increased travel speeds • Lower machinery maintenance costs
The rock mulch that we have in the majority of our infields at RNO is an excellent solution to wildlife and dust concerns. An issue with rock mulch is high winds, helicopter activity and jet blast can cause it to migrate onto paved surfaces. A cold air blower has proven to be the ideal piece of equipment to mitigate rock mulch migration concerns. It is also used during pavement maintenance operations to remove dust, debris and concrete saw laitance from the pavements that have been prepared for patching or painting operations.
Snow removal on AOA surfaces is critical for safe aircraft operations, as the presence of snow, ice, slush, and standing water degrade the coefficient of friction, reduce braking and directional control, and impede aircraft acceleration. The current piece of equipment, "Jet Air", is also an integral part of our snow removal fleet and is used to remove snow from the airfield lights and signs, as well dispersing standing water to prevent ice from forming.
On July 11, 2018, Invitation to Bid #18/19-01 was issued and advertised in the Reno Gazette-Journal. The bid was also posted on the RTAA website, as well as being posted on the Nevada Government eMarketplace website and was reviewed by fifteen companies. Only one bid was received in good order and opened on August 2, 2018. The bid received was from RPM Tech, Inc. There are only two manufacturers of this type of specialized equipment. The other manufacturer is Wausau Equipment Company, Inc. which did not submit a bid.
During the September 13, 2018 Board Meeting, the Board authorized the purchase of a truck-mounted cold air blower from RPM Tech, Incorporated in the amount of $385,850. The equipment was delivered in February of 2019. Upon receiving the unit, Airfield Maintenance staff inspected the equipment for conformance to the bid specifications and found that there were multiple significant discrepancies and performance problems that deemed RPM as being non-response. After attempts were made with RPM Truck-Mounted Cold Air Blower Purchase # 20(01)-01 January 9, 2020 Board Meeting Page 3 of 5
to remedy the issues it was agreed between RTAA and RPM that the equipment would be returned to RPM at no cost to the airport.
Discussion The Facilities management team then met with the RTAA Purchasing Department and jointly agreed to explore the purchase of this highly specialized equipment through a joinder type of purchasing contract. Sourcewell Cooperative Purchasing Solutions, formerly known as National Joint Powers Alliance (NJPA) was then researched and it was found that the other supplier of Truck-Mounted Cold Air Blowers, Wausau Equipment Company, was awarded a contract with Sourcewell to provide this specialized piece of equipment for purchase, as well as other types of snow removal equipment. The RTAA has purchased other equipment from NJPA in the past years and deemed the process and pricing to be competitive with an open bid process. The negotiated Sourcewell contract price for the Wausau "Turbo Blast 500" cold air blower is $393,749. While the truck comes with a standard one-year warranty, staff is also recommending the purchase of four additional years of warranty at a cost of $19,050 which is roughly 4.8 percent of the vehicle purchase price, to provide a total warranty period of five years.
This new Wausau Turbo Blast 500 Truck-Mounted Cold Air Blower will replace the existing 1986 "Jet Air", a multi-use piece of equipment that is utilized to support the airfield maintenance operations for FOD control, snow removal and pavement maintenance support.
Prior to submitting the FY 2018/2019 annual budget request to replace this critical piece of equipment, staff evaluated the condition of the existing Jet Air per the RTAA Vehicle/Equipment Acquisition and Replacement Policy #1000-001. The following are the replacement criteria for Heavy Equipment:
Heavy Duty Vehicles and Equipment
• Replacement evaluation after 10-20 years depending on type of vehicle/equipment or • Replacement evaluation when vehicle/equipment exceeds 80,000 miles or • Replacement evaluation every 25,000 hours on Hobbs hour meter or • Replacement evaluation when maintenance cost to purchase cost ratio exceeds 30%
The existing 33 year-old Jet Air has reached the end of its useful service life and has become increasingly unreliable and expensive to maintain. It is overdue to be replaced being 33 years old which exceeds the replacement criteria of 20 years.
The purchase price of this equipment in 1986 was $75,000 and the estimated maintenance and repair costs incurred over the past 32 years is $70,000, with over $30,000 occurring in the last four (4) years. This represents a 93% maintenance cost to purchase price ratio. Costs to maintain and repair this equipment and its frequent downtime will increase exponentially until it is replaced. Parts are unavailable and many of the parts that have been replaced within the last few years have had to be fabricated in house.
This first generation machine has only 25% of the air volume and wind speed of the newer version. It will be sent to the next salvage auction after the new truck has been delivered. Truck-Mounted Cold Air Blower Purchase # 20(01)-01 January 9, 2020 Board Meeting Page 4 of 5
A sample of the other airports that have the Wausau cold air blowers include Chicago O'Hare International Airport (2 units), Chicago-Midway Airport (1), Detroit Metropolitan Airport (2), Salt Lake City International Airport (1), and Islip Airport, New York (1).
Company Background
Wausau Equipment Company, Inc. is owned by Alamo Group Inc. Founded in 1969, Alamo Group Inc. (NYSE: ALG) is a leader in the design, manufacture, distribution and service of high quality equipment for infrastructure maintenance, agriculture and other applications. Products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related after-market parts and services. Alamo Group Inc. is headquartered in Seguin, Texas. Member companies are throughout Africa, Australia, Europe, North America, and South America. The Wausau airport and rail equipment manufacturing divisions is located in Fond du Lac, Wisconsin.
Fiscal Impact The adopted FY 2018-2019 Budget included a projected cost of $458,000 for this purchase. This budget amount was carried over into the Fiscal Year 19/20 O&M budget. Based on the contract bid outlined above in the amount of $393,749, along with four years of extended warranty in the amount of $19,050, this represents a savings of $45,251. With this purchase price being over $300,000, the Airline Use and Lease agreement establishes this cost will be amortized over an estimated useful life of five years.
Committee Coordination This item is scheduled to be presented at the January 7, 2020 Finance and Business Development Committee Meeting.
Recommended Motion It is hereby recommended that the Board adopt the following motion:
"It is hereby moved that the Board authorizes the President/CEO to award a contract for the purchase of one truck-mounted cold air blower, to Wausau, Inc., in the amount of $393,749 and the purchase of four additional years of warranty for $19,050, and authorizes the President/CEO, or her designee, to sign."
MMM/dgp/jk Truck-Mounted Cold Air Blower Purchase # 20(01)-01 January 9, 2020 Board Meeting Page 5 of 5
Wausau Turbo Blast 500 Cold Air Blower — Airport Equipment
2020 Wausau Turbo Blast Cold Air Blower
1986 Jet Air Cold Air Blower
wemwveyou A Reno-Tahoe Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-02 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Marily Mora, A.A.E., President/CEO 6."11 SUBJECT: AuthorizationAuthorization for the President/CEO to Award a Contract for the Purchase of One Truck-Mounted Stripe HogTM SK2000 Water Blasting System, Parts and Accessories, To Hog Technologies in the Amount of $521.785.29
Staff Recommendation Staff recommends that the Board authorize the President/CEO to award a contract for the purchase of one truck-mounted SK2000 Stripe Hog Water Blasting System, with Hog Technologies, in the amount of $521,785.29. .
urpose The purpose of this action is to obtain Board of Trustee approval and authorization for the President/CEO to authorize the award of a contract for the purchase of the Stripe HogTM 5K2000 Waterblasting System that will be utilized for rubber removal, paint removal and surface preparation of pavement surfaces for painting and markings at the Reno-Tahoe International Airport (RNO).
This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority # 2 — General Aviation, Strategic Priority # 4 — Safety and Security, and Strategic Priority #8 — Sustainability as adopted in the Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan. Background
The equipment recommended for this procurement is a state-of-the-art, Stripe HogTM 5K2000 from Hog Technologies. It is a chassis-mounted, auxiliary engine powered water-blasting and recovery system designed for either asphalt or concrete airfields or roadways for paint and thermoplastic removal, surface preparation, road texturing, hydraulic spill cleanup, and removal of rubber deposits from airport runways.
The SK2000 is equipped with ultra-high pressure needle sharp water blasting jets creating as much as 40,000 psi at five (5) gallons per minute (GPM). It uses ordinary fresh water without chemicals or detergents, along with a vacuum recovery system. It comes with its own power plant, vacuum system, holding tank and recovery system and comes standard with the "hog arm" attached blasting head. The 5K2000 can stay on the job for up to 5 hours before dumping or replenishing with fresh water. Water Blasting System # 20(01)-02 January 9, 2020 Board Meeting Page 2 of 6
The primary function for this highly specialized piece of equipment will be rubber, paint and thermoplastic markings removal on the Airport Operations Area (AOA), specifically the runways, taxiways, and terminal ramp areas at RNO.
Over time, the rubber build-up from aircraft tires during landing operations on the runways will degrade the friction coefficient of the runway surfaces, which necessitates the removal of the deposits to ensure a proper surface for aircraft braking. To determine when the pavements require rubber removal, the friction coefficient of the pavements is measured by utilizing the RTAA owned Surface Friction Testing Truck. Rubber removal and the maintenance of pavement surfaces are required by FAA Advisory Circular 150/5230-12D "Measurement and Maintenance of Skid-Resistant Airport Pavement Surfaces."
Rubber removal operations are currently performed by airfield maintenance personnel with a biannual need for the services of a water blasting contractor. Chemicals are used for the in-house operations. Chemical rubber removal is a fairly effective removal method, but is time-consuming, labor intensive and environmentally unfriendly. Five operators and five pieces of equipment are necessary for chemical rubber removal. During the removal process, rubber and the removal chemical are washed off the side of the pavement into infield areas. This creates potential environmental concerns for potential ground water contamination. Chemical costs are also a consideration in the use of this process. Often chemical rubber removal does not provide the friction coefficient needed for Part 139 air carrier operations. This is because chemical rubber removal only removes rubber from the surface (macrotexture) of the concrete pavements. To regain a higher friction coefficient, water blasting is required.
Water blasting not only removes rubber from the macro-texture, it also gets into the pores of the concrete and removes rubber from the micro-texture of the pavement. Water blasting can also retexture concrete further improving the friction coefficient. Water blasting is clearly the preferred method for rubber removal. It is relatively fast and only requires one operator. Environmental concerns of chemical rubber removal are remediated by the water blaster's ability to capture waste rubber and water for environmentally friendly disposal.
The water blasting process is relatively simple. Water is pulled from an onboard storage tank, pressurized up to 40,000 pounds per square inch (psi) and blasted onto the pavement by a rotating head. The water and the removed contaminants are then vacuumed into a tank in which contaminants are separated from the water. The water is then recycled back to the water storage tank for reuse. This method isolates and contains the removed contaminants for proper disposal while reducing the water consumption of the unit. The isolation of contaminants gives water blasting significant environmental benefits over other methods of surface cleaning and preparation.
Most airfield markings are repainted on an annual basis and some markings are repainted several times in a year. This frequent painting is currently necessary to insure conspicuity and retro reflectivity, but repeated repainting leads to heavy paint build up. This build-up can become so thick that it flakes off in large pieces that become a very serious FOD issue. Surface grinding is the current method used to alleviate paint build-up. Grinding is a very labor-intensive and dusty process that requires two operators and two pieces of equipment to perform. The grinding process poses a significant risk of pavement scarring/ spalling, and the repeated grindings required have been shown to have a negative impact on pavement longevity. Using this antiquated method to maintain the markings on the new pavement slated for 16R/34L could be very problematic due to the scarring and spelling concerns. Water Blasting System # 20(01)-02 January 9, 2020 Board Meeting Page 3 of 6
Grinding only removes approximately 70% of a marking without significant pavement damage. The FAA mandates 100% removal. The 100% removal ensures that no evidence of an old marking remains and, if a new marking is being applied, it will have 100% adhesion. Water blasting is the industry standard for 100% paint removal. Water blasting is the fastest and most effective paint removal method available and the equipment only requires a single operator. Well performed water blasting operations cause very minimal impact to pavements.
RNO presently has no practical way to clean painted markings and cleaning thermoplastic markings is currently a very costly process involving multiple pieces of equipment in a labor intensive operation. It has been demonstrated that water blasting can be effectively used to clean existing markings and restore them to near new conspicuity and retro-reflectivity. In many cases, cleaning may eliminate the need to repaint markings entirely. This capability will also allow markings to be refreshed when weather conditions are not conducive to painting. Regardless if a marking is new or is going over an existing marking, a clean surface is critical for proper adhesion. A water blaster can quickly remove loose paint, dust and laitance in a single pass prior to markings operations.
Airfield pavement and the thermoplastic and painted marking cleaning operations are primarily performed on the terminal ramp and gate areas. This work is currently performed with chemicals, tractor mounted brushes and vacuum trucks. This work process does not provide good value when time and funds expended are compared to the results. These areas also require frequent restriping due in part to the minimal effectiveness of this process. Water blasting is the industry standard for surface cleaning. The highly pressurized water gets into the micro-texture of the pavement to remove contaminants such as hydrocarbons (fuel and oil) and residual glycol from deep inside the pavement, not just on the surface. Removal of these contaminants from the ramp areas with this unit captures them in the vacuum recovery tank and prevents them from entering the storm water system.
Alternative methods of paint removal, rubber removal, pavement surface and markings cleaning include shot blasting, grinding and sand blasting. The disadvantages of grinding have already been discussed. Shot blasting and sand blasting are old technology removal methods and are slow and labor intensive. Shot blasting requires expensive equipment and leaves thousands of expensive steel pellets on the pavement when the removal operation is completed which are required to be removed from the surface. These pellets create serious FOD concerns and must be collected by sweeping equipment. RNO has also utilized sand blasting equipment in the past. Sand blasting is an excruciatingly slow and labor intensive process. Both shot and sand blasting expose employees, tenants and the traveling public to potentially hazardous silica laden concrete dust and both removal methods require two to four-man crews.
Discussion During the 2018 out-briefing of the FAA Part 139 Inspection, the FAA Part 139 Certification Inspector for RNO has recommended the purchase of a water blaster as a necessary piece of equipment for maintaining high friction coefficient numbers on RNO runways and allowing maintenance staff to better maintain and clean airfield markings.
The new Stripe HogTM 5K2000 will be an addition to the fleet and will reduce the labor and equipment requirements needed to perform the functions for the various pavement maintenance operations as Water Blasting System # 20(01)-02 January 9, 2020 Board Meeting Page 4 of 6
previously mentioned, and increase the efficiency of these operations. Currently the airport spends approximately $177,000 per year for rubber and paint removal operations for labor and chemicals. The purchase of this equipment would reduce this expense by approximately $140,000 per year with a Return on Investment of 3.7 years.
Purchasing the Stripe Hog SK2000 Waterblaster will support RTAA Sustainability Initiatives in multiple ways:
Rubber Removal • Eliminates the use and storage of rubber removal chemicals entirely • Eliminates the potential ground water contamination of removed rubber and the removal chemicals by capturing 100% of the removed contaminates and water • Will actually save water since the 5K2000 Waterblaster recycles the captured water and eliminates the need to flush rubber removal chemicals from the pavement surface which requires thousands of gallons of water • Eliminates wear of snow removal brooms that are used to agitate chemicals onto the pavement • Reduces exhaust emissions by replacing five (5) pieces of equipment with only one (1) Paint Removal • Eliminates the airborne dust particulates produced by grinding operations • Captures 100% of the paint removed • Reduces exhaust emissions by replacing two pieces of equipment with only one Markings Cleaning • Reduces the use of paint and glass beads by extending the life of the markings Surface Cleaning • Captures glycol and hydrocarbons before they reach storm drain systems • Reduces exhaust emissions by replacing three pieces of equipment with only one
Other advantages are: • Vacuum recovery allows for the application of new paint or thermoplastic markings in 20 minutes • Rapid cleaning and rejuvenation of runway centerline marking retro-reflectivity dramatically reduces the frequency of painting • Runway retexturing in climates with heavy snow and ice where snow removal brooms polish the surface of the runway • Simultaneous vacuum recovery allows for a quick response to emergency landings during the removal process. The SK2000 will shut down and vacate the runway in under one (1) minute
The purchase of this specialized equipment will be procured through Sourcewell Cooperative Purchasing Solutions, formerly known as National Joint Powers Alliance (NJPA). This program leverages cooperative pricing agreements with companies who have been selected by Sourcewell through a competitive proposal pricing process. Respondents for the Request for Proposal (RFP) and agreement through Sourcewell to provide "Airport Runway and Emergency Equipment with Related Accessories" are ranked and based on:
• Conformance to terms and conditions of the agreement 9 Pricing • Financial, Industry, and Marketing success • Bidder's ability to sell/service contracts nationally • Bidder's Marketing Plan • Value added attributes • Warranty coverages and information • Selection and variety of products and services Water Blasting System # 20(01)-02 January 9, 2020 Board Meeting Page 5 of 6
Hog Technologies is the industry leader and the only firm that offered this type of specialized equipment in the Sourcewell RFP, and over 38 airports across America purchased one or more of the Stripe Hog Waterblasting units.
Per Nevada Revised Statute 332.195, the RTAA is allowed to purchase equipment through this program, and is a registered member with Sourcewell. The RTAA has utilized this resource in the past to purchase specialized equipment.
Company Background Hog Technologies has over 25 years of history in the roadway and airport industry, manufacturing the Stripe Hog Waterblasting System. They also manufacture Thermoplastic marking application equipment, paint stripers, pavement grooving and grinding equipment, vacuums and hydro excavators. They have sold equipment to over 53 countries worldwide and provide training through Hog Tech University for contractor, equipment operators and maintenance mechanics of their equipment. They have a 105,000 square foot manufacturing and service facility in Stuart, Florida and a distribution and office facility in Eastern Europe.
Fiscal Impact The adopted FY 2019/20 Budget included a projected cost of $522,000 for this purchase. Based on the purchase price outlined above in the amount of $521,785.29 this represents a savings of $214.71. With this purchase price being over $300,000, the Airline Use and Lease agreement establishes this cost will be amortized over an estimated useful life of five years.
Committee Coordination This item is scheduled to be presented at the January 7, 2020 Finance and Business Development Committee Meeting.
Recommended Motion It is hereby recommended that the Board adopt the following motion:
"It is hereby moved that the Board authorizes the President/CEO to award a contract for the purchase of one truck-mounted Stripe Hog."' SK2000, parts and accessories to Hog Technologies, in the amount of $521,785.29, and authorizes the President/CEO, or her designee, to sign."
MMM/dgp Water Blasting System # 20(01)-02 January 9, 2020 Board Meeting Page 6 of 6
2020 Stripe Hog 5K2000 wemwveyou A Reno-Tahoe Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-03 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Mai* Mora, A.A.E., President/CEO P4a.1.1A1 SUBJECT: Authorization for the President/CEO to Execute a One-Year Agreement Extension with Aviation Classics, Ltd to Lease Two Reno-Tahoe Airport Authority Owned Commercial Box Hangars, Outside Storage Area, Ramp Space, and Fuel Storage Tanks for the Purpose of Operating a Non-Exclusive Fixed Base Operation at the Reno-Stead Airport for a Minimum Contract Value of $114,026.28
Staff Recommendat ii
Staff recommends that the Board of Trustees (Board) authorize the President/CEO to execute a one-year agreement extension with Aviation Classics, Ltd. (ACL) to lease two Reno-Tahoe Airport Authority (RTAA) owned commercial box hangars, outside storage area, ramp space, and fuel storage tanks for the purpose of operating a non-exclusive Fixed Base Operation (FBO) at the Reno-Stead Airport (RTS) for a minimum contract value of $114,026.28. Purpose
The purpose of this action is to obtain Board approval for the President/CEO to execute a one-year agreement extension with ACL to allow ACL to continue leasing RTAA property at RTS for the purpose of operating an FBO.
This action is in support of RTAA Strategic Priority # 2 — General Aviation and Strategic Priority # 5 - Financial Diversification and Growth. ackgr und
ACL, previously known as CIA Aviation, has been owned and operated by the Redick family at RTS since 1985. Over the last 35 years, ACL has provided FBO services to the tenants and users of RTS, while leasing and maintaining the RTAA owned hangars. In addition to FBO fueling services, ACL assists with the successful conduct of the National Championship Air Races each year, and provides fueling support to the Bureau of Land Management (BLM) during fire season.
ACL's current agreement with RTAA, which expires October 31, 2020, includes the lease of two RTAA owned Hangars: Buildings 7003 & 8003; 120,000 square feet of ramp tie-down area, 15,874 square feet of land for outside storage of materials and supplies and four RTAA owned fuel tanks including a self-serve fuel island nnanaged by ACL (Refer to Exhibit A — Leased Premises). Discussion
The FBO opportunity at RTS has not been publicly competed in 35 years, and staff anticipates issuing a public, competitive solicitation for that opportunity in the future. However, based on the development Aviation Classics, Ltd # 20(01)-03 January 9, 2020 Board Meeting Page 2 of 3
potential for RTS and shift in demand for FB0 services, there is a need for flexibility to assess what type of FBO services and facilities will best suit the RTS user base in the future. Extending ACL's lease for a year will give the RTAA an opportunity to better understand market conditions before initiating a public, competitive process.
RTAA staff began discussing a contract extension with ACL in July 2019. ACL accepted a one-year extension and executed a term sheet (Refer to Exhibit B - Term Sheet).
If approved by the Board, the ACL agreement extension would begin November 1, 2020 and expire October 31, 2021. The agreement would enter into a month-to-month holdover after expiration of the agreement extension term. The agreement will continue to include the following Leased Premises:
• Building 7003/Parcel 9 14,880 sf) • Outside Storage Area (,%' 15,874 sf) • Building 8003 (fz,' 15,168 sf) • Ramp Tie-Down Area (,%' 120,000 sf) • 4 fuel storage tanks (1 tank self-serve Fuel Island)
Since the term is only one-year, no capital investment will be required to the facilities referenced above. No other changes to the agreement are proposed. ACL will also continue to be responsible for repair and maintenance of the buildings, clean up, and/or screening of outside storage areas. The RIM will continue to be responsible for ramp maintenance.
Company Background
ACL is a Nevada incorporated, minority-owned small business based in Reno, Nevada. The business was started by Al Redick, Sr. who came to Reno from Southern California to restore Bill Harrah's Lockheed P-38 Lighting. At that time, Mr. Redick started the Reno-Stead Warbird Restoration Shop named CIA Aviation. In 1987, ACL was formed by the purchase of CIA Aviation. In 1989, the family run business was reorganized, and son Alby Redick began operating the business as the sole owner.
ACL is a Federal Aviation Administration (FM) Approved Repair Station providing general aviation maintenance, top line avionics, instrument and autopilot installation, and avionics sales and repair, and became an approved Phillips 66 Dealer and installed a Self-Serve 100LL Fuel Island at Reno-Stead in 2000.
Fiscal Impact
In order to meet the requirements of Grant Assurance 24, the current rent for the Leased Premises was adjusted in 2015 pursuant to an appraisal to ensure the RTAA received fair market value for ACL's leasehold. The value established by the appraisal was used to establish rental rates for the two buildings and the outside storage area. The rent rate is adjusted annually based on the Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U) with an annual increase not to exceed three percent (3%). No methodology change is proposed to the CPI-U annual rent adjustment. Aviation Classics, Ltd # 20(01)-03 January 9, 2020 Board Meeting Page 3 of 3
The rental revenue and extension value will be for a minimum of $114,026.28. The following table shows the current rent rates:
Facility Current Monthly 1-Year Revenue Revenue Building 7003 & 8003 $8,084.11 $97,009.32 Outside Storage Area $342.08 $4,104.96 Ramp Tie-Down Area $1,076.00 $12,912.00 Fuel Tank Use Fee* $.01 Per Gallon Delivered Fuel Flowage Fee* $.05 Per Gallon Sold Concession Fee* 2% of Gross Revenue from Labor/Personnel Time TOTAL $114,026.28 * Fees are non-standard and vary month to month based on information provided to the RTAA from ACL
Over the term of the lease extension, ACL will also continue to be responsible for all utility expenses as well as maintenance and repair of the Leased Premises.
Committee Co rdination
This item is scheduled to be presented at the January 7, 2020 Finance and Business Development Committee.
Recommended Motion
It is hereby recommended that the Board adopt the following motion:
"It is hereby moved that the Board of Trustees authorize the President/CEO to execute a one-year lease extension with Aviation Classics, Ltd to lease two Reno-Tahoe Airport Authority owned commercial box hangars, outside storage area, ramp space, and fuel storage tanks for the purpose of operating a non- exclusive Fixed Base Operation at the Reno-Stead Airport for a minimum contract value of $114,026.28".
MMM/tI/jk Exhibit A Leased Premises
Self-Serve 120;000 sf Ramp Fuel Island
9'43'449'N 1'19"52'1' k56' JIi SoA -ye a t 545511 Reno-Tahoe 40 Airport Authority TERM SHEET FOR ONE YEAR AMENDMENT TO EXTEND LEASE AND FIXED-BASE OPERATOR AGREEMENT AT RENO-STEAD AIRPORT AVIATION CLASSICS LIMITED
Extension Term of One (1) November 1, 2020 — October 31, 2021 (1 year) Year Month-to-month thereafter •
Premises No change
Rates/Charges Existing Monthly Rent Rates adjusted annually on November 1 by Consumer Price Index for All Urban Consumers (CPI-U) not to exceed 3%.
No change to Existing Charges.
Security Deposit No change
Improvements No change
Utilities/Taxes/Licenses No change
Capital Investment No change
Operations No change
Assignment/Subletting No change
Insurance No change
Required Services No change
Optional Services No change
This Term Sheet is non-binding and merely expresses the terms the parties are prepared to incorporate into a Lease Amendment which will be binding only upon its signature by duly authorized representatives of both parties. If you agree with the terms please sign below.
ACKNOWLEDG ED:
By:
Name: Pd‘f
Title:
Date: 7/7.
wemGpveyou Reno-Tahoe •Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-04 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Marily Mora, A.A.E., President/CEO rh.44-1-1-11 SUBJECT: Authorization for the President/CEO to Execute a Professional Services Agreement for Consultant Services for a Detailed Planning Study for a Potential Reno-Tahoe International Airport Ticketing Hall Expansion Project, with H+K Architects, in the Amount of $220,000
Staff Reconmendaton
Staff recommends the Board authorize the President/CEO to execute a Professional Services Agreement for consultant services for a Detailed Planning Study for a potential Reno-Tahoe International Airport Ticketing Hall Expansion Project, with H+K Architects, in the amount of $220,000.
Purp 111
The purpose of this action is to request authorization for the President/CEO to execute a Professional Services Agreement (PSA) for consultant services for the development of a Detailed Planning Study for the Reno-Tahoe International Airport Ticketing Hall Expansion Project. The Detailed Planning Study will identify preferred solution(s) to address passenger operational, space, and level of service deficiencies and necessary building system replacements to increase the capacity, functionality, and useful life of the Ticketing Hall.
This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #3 - Facilities for the Future and Strategic Priority #6 - Customer Experience as identified in the Reno-Tahoe Airport Authority Fiscal Year (FY) 2019-2023 Strategic Plan.
ackgro nd
The 2018 Master Plan Update identified a number of issues associated with the existing Ticketing Hall including: • Inadequate passenger circulation areas, • Lack of passenger restroom facilities, • Ineffective wayfinding, and • Mechanical building systems nearing end of useful life. The 2018 Master Plan Update further posited that circulation, queuing, and restroom needs might be addressed through a series of select "bump outs" along the Ticketing Hall frontage, pending additional analysis.
In order to complete the necessary investigative work to create an accurate statement of work for a future design effort, staff secured Federal Aviation Administration (FAA) approval to conduct a Passenger Facility Charge (PFC) funded detailed planning study under PFC Application No. 14. The primary goals of the detailed planning study are to identify measures to: Ticketing Hall — Detailed Planning Study PSA # 20(01)-04 January 9, 2020 Board Meeting Page 2 of 3
• Improve passenger circulation and queuing, • Improve wayfinding/signage and address ADA signage standards, • Address mechanical system needs to extend the useful life of the building, • Improve the level of service provided to passengers, and • If feasible, create additional revenue-generating space available for lease.
The Detailed Planning Study is intended to be a precursor to the design and construction of a future Ticketing Hall Expansion project. The Detailed Planning Study includes investigative work, infrastructure & systems assessment, alternatives analysis, preferred alternative identification, cost estimates, and stakeholder efforts. The final deliverable is a Basis of Design Report that identifies a preferred solution.
Approval of the Detailed Planning Study does not constitute approval of the future project. Based on the results of the Detailed Planning Study and pending funding, a Construction Manager at Risk (CMAR) team may be solicited via a separate public Request for Qualifications process for design and construction.
Discussion
A Request for Qualifications (RFQ) for consultant services was advertised on August 28, 2019 on the renoairport.com website, on the Reno Gazette-Journal, and via the Nevada Government e-Marketplace (NGEM).
Statements of Qualifications (SOQ) were received by the due date of October 3, 2019, by five (5) firms: • DWL Architects, • Gresham Smith, • H+K Architects, • Merchant Aviation, and • Tate Snyder Kimsey Architects.
A Selection Committee, comprised of RTAA staff and a representative from the RTAA Board of Trustees, reviewed the submittals and, on October 14, 2019, decided to invite two (2) of the proposing teams for final interviews. Interviews were held on October 21, 2019, and the Selection Committee unanimously determined that the team led by H+K Arch itetts was the most qualified firm for the project. The evaluation was based on the qualifications and experience requirements stipulated in the RFQ.
A pre-scoping meeting and site tour was held on November 8, 2019 with staff and the H+K Architects team as part of the work scope and fee negotiations process. The resultant PSA provides for consultant services consisting of architectural, aviation planning, civil engineering, structural engineering, mechanical engineering, electrical engineering, and cost-estimating services. The scope includes the following major components: • Data gathering and record information review, • Facility assessment and needs analysis, • Alternatives analysis and selection of preferred alternative, and • Basis of Design Report. Stakeholder outreach and coordination is included in this PSA to include RTAA Board, staff and tenant feedback.
It should be noted that the RFQ advertisement and early discussions of the Detailed Planning Study included a curbside safety and security component which could assess the need for increased protection of an area vulnerable to vehicle crashes, either accidental or purposeful. This component has been pulled out of this study and incorporated into the Loop Road Reconstruction Project. The next PFC Application (No. 15) will include a roadway reconstruction project to address the deteriorating concrete segments of the Terminal Loop Road. The concrete segments travel along the entire Terminal Building frontage, and Ticketing Hall — Detailed Planning Study PSA # 20(01)-04 January 9, 2020 Board Meeting Page 3 of 3
security enhancements along the project area are eligible for inclusion. The Terminal Loop Road project schedule has an estimated completion of late 2021.
Company Background
H+K Architects, legal name Hershenow + Klippenstein Architects, is based in Reno, Nevada and has completed 25 projects for the RTAA with 18 at RNO, including terminal building, airside, and airfield maintenance projects. H+K has also developed program studies for the RTAA, including the Airfield Maintenance Mechanics Shop Large Bay Expansion Program Study and the Terminal Elevators Replacement and New Elevator Installation Program Study.
H+K Architects' will lead a primarily local team that includes Wood Rodgers, Inc., Hyytinen Engineering, Ainsworth Associates, and PK Electrical. These five local architectural and engineering firms have previously collaborated as a team on several successful RTAA projects including the RNO Airfield Maintenance Mechanics Shop Large Bay Expansion Program Study, the RNO East Airfield Lighting Vault, the RNO Snow Removal Equipment Building, and the Reno-Stead Airport Terminal/Emergency Operations Center Building.
The project team also includes the Henderson, Nevada office of O'Connor Construction Management, Inc. (OCMI) and the San Francisco office of Hellmuth, Obata and Kassabaum (HOK), a global design, architecture, engineering, and planning firm with extensive aviation experience. HOK's aviation group has designed more than 350 projects including the Oakland Airport International Arrivals Building, the Seattle- Tacoma International Airport Concourse D Annex, and some of their projects, similar in size and scope to the Ticketing Hall effort, include the Long Beach Airport Terminal Planning Study (New Terminal and Existing Restoration) and the Salt Lake City International Airport Terminal Redevelopment Program and North Concourse.
Fiscal Impact
The PSA, in the amount of $220,000, will be funded with a combination of Passenger Facility Charge (PFC) funds and operating revenues. PFC funding, in the amount of $200,000 for the Detailed Planning Study was approved by the Federal Aviation Administration (FAA) under the PFC Application No. 14. The remaining $20,000 will be initially funded through operating revenues and then reimbursed by either an amendment to PFC Application No. 14 or by new PFC Application No. 15.
Committee Coordination
This item is scheduled to be presented at the January 7, 2020 Planning and Construction Committee meeting.
Recommended Motion
It is hereby recommended that the Board adopt the following motion:
"It is hereby moved that the Board authorizes the President/CEO to execute a Professional Services Agreement for consultant services for a Detailed Planning Study for a potential Reno-Tahoe International Airport Ticketing Hall Expansion Project, with H+K Architects, in the amount of $220,000."
MMM/Ikb
wernc9veyou 4.> Reno-Tahoe Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-05 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Marily Mora, A.A.E., President/CEO -Y14424424-1 1/144Y-C--- SUBJECT: Authorization for the President/CEO to Negotiate Final Terms and Execute Supplemental Lease Agreement #00020 to the Transportation Security
Administration Lease No. Hsts01-09-L-Ress04 to Amend the Leased Premises and Extend the Term for a Five Year Period with Five One-Year Options to Extend for 7,217 Square Feet of Terminal Space and 18 Employee Parking Spaces at the Reno-Tahoe International Airport for a Minimum Contract Value Of $1,789,985
Staff EC mrnendatiion
Staff recommends that the Board of Trustees (Board) authorize the President/CEO to negotiate final terms and execute a Supplemental Lease Agreement to the Transportation Security Administration (TSA) lease, for a five-year term with five one-year options to extend for 7,217 square feet (sf) of terminal space and 18 employee parking spaces at the Reno-Tahoe International Airport (RNO) for a minimum contract value of $1,789,985. Purpose
The purpose of this action is to enter into a new five year agreement with five one-year options to extend with the Transportation Security Administration for their in-terminal Operations and Office space at RNO.
This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #4: Safety & Security, and Strategic Priority #5: Financial Diversification and Growth, as adopted in the RTAA Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan. ckgrovind
The TSA has leased space at RNO since 2002. Since that time, the amount of space TSA leases has grown from 3,160 sf to the 5,879 sf they currently occupy. The leased space consists of approximately 1,269 sf of Airline Operations space in the airline ticketing office area of the first floor of the terminal building (ATO space), 880 sf of Airline Back Office Premises space behind the ticket counters (Office Space) (Exhibit A), and 3,730 sf of Airline Operations space on the ramp side of the ground floor of the B-Concourse (Ops Space) (Exhibit B). TSA's current annual rent is $295,233.12.
TSA's lease of terminal space does not include TSA's use of the passenger screening area, which is covered under a separate license between RTAA and TSA. TSA does not pay rent or any other fee for use of the passenger screening areas.
In 2015, TSA expressed interest in leasing additional space at RNO to help consolidate its off-airport offices. In response, RTAA staff identified approximately 1,338 square feet of Airline Operations space TSA Terminal Lease #20(01)-05 January 9, 2020 Board Meeting Page 2 of 3
adjacent to TSA's Ops Space (New Space) that TSA could lease. Funding challenges and TSA's desire to remodel the Ops Space and the New Space (collectively, the Project) delayed TSA's consolidation plans.
Following two years of negotiations, RTAA and TSA reached an agreement to have RTAA finance and manage the proposed design and construction services required to complete the remodel Project. TSA will reimburse the RTAA for Project costs. RTAA tenants typically fund and manage their own tenant improvements, including design services, working with the RTAA to ensure the improvements comply with airport policies and design guidelines. Due to the unique requirements of the TSA's funding for the Project, the TSA requested that the RTAA finance and manage the tenant improvement process, including design and construction.
In August 2017, the RTAA retained Paul Cavin Architect, LLC (PCA) to complete a rough order of magnitude cost estimate for the Project. On January 29, 2018, RTAA provided TSA a basis of design report prepared by PCA. Based on TSA feedback on the basis of design report, on April 5, 2018, PCA provided a revised rough order of magnitude cost estimate for the Project that met TSA's requirements. A Memorandum of Understanding (MOU) executed between the TSA and RTAA on September 17, 2018 outlined the agreement between the agencies regarding the overall project funding.
At the October 11, 2018 Board Meeting, the Board authorized the RTAA President/CEO to execute a $60,400 Professional Services Agreement with PCA for design services for the Project. Design services consisted of construction documents (plans and specifications), opinion of probable cost, permitting assistance, bidding services, and construction services.
On June 12, 2019, the RTAA conducted a public bid process for construction of the Project. At the July 11, 2019 Board Meeting, the Board authorized the RTAA President/CEO to execute a $622,900 construction contract for the Project with K7 Construction, Inc. (K7). In August 2019, K7 began construction on the Project. K7 anticipates completing construction in early February 2020.
RTAA has been paying K7's construction invoices and submitting the invoices to TSA for reimbursement. To date, TSA has fully reimbursed RTAA for all construction invoices.
Discussion
TSA's current lease expired on June 30, 2019, and TSA has remained in a month-to-month holdover since that date. Per the terms of the MOU, upon full payment of construction costs and reimbursement by TSA, the RTAA and TSA will enter into a new five-year lease with five one-year options to extend, at RTAA's discretion. Staff anticipates construction completion and full reimbursement by March 2020.
The new lease will include TSA's current leasehold and add the New Space and 18 employee parking spaces in the vendor/employee lot (Blue Lot). The addition of the New Space will allow TSA to consolidate its local offices and bring all of its employees in the area to RNO. TSA operations will include IT, human resources, background screening areas, training rooms, break rooms and general purpose offices at RNO. TSA will continue to provide passenger screening services at RNO during the term of the new lease.
Company Background
The TSA was created by the 2001 Aviation and Transportation Security Act in response to the September 11, 2001 terrorist attacks against the United States. In 2003, the TSA was transferred from the United States Department of Transportation to the newly created United States Department of Homeland Security. The TSA has oversight and regulatory responsibility for civil aviation security. TSA Terminal Lease #20(01)-05 January 9, 2020 Board Meeting Page 3 of 3
The TSA is headquartered in Arlington, Virginia and employs approximately 60,000 people at over 450 airports nationwide. Nearly 2 million passengers are screened each day in the United States. Locally at RNO, TSA employs approximately 155 people and screens an average of 5,500 passengers per day.
Fiscal Impact
TSA's rent rate is set using the rates established in the Master Fee Resolution. TSA's rent will be adjusted by CPI, not to exceed 3%, on each anniversary of the commencement of the Lease. TSA's total annual rental payment will be $357,997. Below is a table that summarizes the estimated annual cash flow and five-year contract value.
Estimated Annual Revenue Total Year 1 Year 2 Year 3 Year 4 Year 5 Minimum Contract Value Lease $357,997 $357,997 $357,997 $357,997 $357,997 $1,789,985 Revenue to RTAA
Government contracts are subject to an annual appropriation of Federal funds and each contract contains the proviso that the lease is effective only if adequate appropriations are available from year to year for the payment of rentals.
Committee Coordination
This item is scheduled to be presented at the January 7, 2020 Finance and Business Development Committee.
Recommended Motion
Staff recommends the Board adopt the following motion:
"It is hereby moved that the Board authorize the President/CEO to negotiate final terms and execute Supplemental Lease Agreement #00020 to the Transportation Security Administration lease, amending the Premises and extending the term for five years with five one-year options to extend for 7,217 square feet of terminal space and 18 parking spaces at the Reno-Tahoe International Airport for a minimum contract value of $1,789,985."
MMM/be/jk Exhibit A TSAATO and Back Office Space
TSA Airline Ticket Office Space TSA Back Office Premises (880 sf) (1,269 sf) Behind ATO 7 & 8 Modification P00001, 7/1/2010
_ .1 1
au ll kgr 1,1;1E11 D ; luNoccurvi i 119 SF I , 0 0 PII ' Al --in - 1 II' -- • 1 A TO 1? ATO 1 ATI) I/ Aip s2 ir Iro SF 116 SF 9 SF 4i If . ATO 9 AT ATO T ATO 6 ATO A TO 4 MI- • I.269 ,F 145 628 SF 892 SF 6., ' F 997 F tTI,P F Ng al ATO I ATO 3 . Ilk I I 47 S• III 459 S 1 M _ - RI -..- i M II °VII \ 1-1PIE inn LNOCUPI I MI I .... CORRIDOR OORRIDOF1 CORRIDOR 95 SF - ATO 10 29 SF - ATO 6 102 SF - ATC 2 95 SF - ATC II 29 IF - ATO 7 102 SF - AT( 3 95 SF - ATO 1 2
I
- 4.---- A [ELE 0 ri I CsEd 0 V CsEF OLECTRISALjJ Ift HIS OLJII" Ca,/ ROO 'ART ROO A ROO 50.8 SF U.? SF 6 5 n = n n n n n n n n I 0 0
NOTE:OVERALL ATO SQUARE FOOTAGE INCLUDES COMM SPACE AND SHARED CORRIDORS ON THIS DRAWING
ATO - LEASEHOLD EXHIBITS 4111AirportF" eno A -Tuathhooer i t y 4k RENO. NEVADA February 2,2012 Exhibit B—TSA Operations Space - Concourse B
TSA New Operations Space (1,338 sf) 148 216 SF 265 383 SF SF SF B9 STAIRWELL 11 36SF
211 SF Lf 179 216 187 100 SF SF SF SF •
144 144 209 194 SF SF SF 275 SF (11-\ SF 17 63 SF 583 159 138 STAIRWELL SF 162 SF 55 51 SF SF SF
ELEC. 240 SF LI 216 726 LI SF SF 132 TSA Current Operations SF 150 Space SF
Concourse B (3,730 sf) 147 250 SF 264 126 SF SF 131 160 NSF SF
L 154 346 SF 203 SF 290 SF SF LI LI 121 SF 441 SF Cr] 71 448 244 SF SF SF
190 1 152 SF STAIRWELL SF
ELECTRICAL
TUNNEL NOT TO SCALE Reno-Tahoe "ulleeEZE 1):4tAirport° Authority P9ChlECT AIRUNE OPERATIONS AREAS 8 CONCOURSE 19. EAST February 2,2012
wemc9veyou Reno-Tahoe •Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-06 TO: Chairwoman & Board Members . For: January 9, 2020 Board Meeting FROM: Marily Mora, A.A.E., President/CEO iY1 t kt SUBJECT: Adoption of Resolution No. 544: Amending Resolution No. 539 — A Resolution Adopting an Update to Policy No. 600-007 on the Financial Incentives for Airline and Dedicated Cargo Carriers
St ff Recineiridatori
Staff recommends that the Board adopt Resolution No. 544: Amending Resolution No. 539 - A Resolution adopting an update to Policy No. 600-007 on the financial incentives for airline and dedicated cargo carriers. Purpose
The purpose of this action is to adopt Resolution No. 544, and update Policy No. 600-007 regarding financial incentives for Airline and Dedicated Cargo Carriers. The update to the policy incorporates Public Charters, which do not currently qualify for incentives, and clarifies the application of airport rental fees and landing fee incentives, as well as marketing support. The approval of this action will allow RTAA to offer incentives to Public Charters, defined as a Federal Aviation Administration (FAA) Part 135 air carrier under Department of Transportation (DOT) 14 Code of Federal Regulations (CFR) Part 380 that functions as a public charter, selling tickets to the public and offering scheduled operations on a seasonal or year-round basis.
This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority # 1: Air Service and Cargo, as adopted in the RTAA Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan.
ackground
The RTAA, like most airports in the United States, has found it necessary to create incentive/inducement programs in order to increase air services by both passenger airlines and air cargo carriers. These incentives are in compliance with the Federal Aviation Administration's (FAA) Air Carrier Incentive Guidelines. Beginning in May 2001 the following occurred: • In May 2001, the Board approved Resolution No. 416 and Policy No. 600-007 — a Resolution adopting a policy to provide financial incentives/inducements to Scheduled Passenger Airlines to increase air service to RNO by authorizing the President/CEO to waive or discount airport fees and authorize marketing/advertising support for up to 90 days.
• In May 2004, the Board approved Resolution No. 445 which amended Resolution No. 416 and updated Policy No. 600-007 by authorizing the President/CEO to: 1. Waive or discount airport fees and authorize marketing/advertising support for up to 365 days. 2. Offer airline incentives for a minimum of one flight per week. 3. Offer airline incentives for new destinations with no nonstop air service, or less than two scheduled flights per week. Airline Incentive Policy # 20(01)-06 January 9, 2020 Board Meeting Page 2 of 4
• In February 2010, the Board approved Resolution No. 500, which amended Resolution No. 445 and updated Policy No. 600-007 authorizing the President/CEO to: 1. Offer incentives to airlines providing one-stop direct, same plane air service to a new destination with no existing nonstop air service.
• In February 2014, the Board approved Resolution No. 516, which amended Resolution No. 500 and updated Policy No. 600-007 authorizing President/CEO to: 1. Include financial incentives for Air Cargo Carriers. 2. Eliminate language pertaining to incentives for one-stop direct or same plane air service.
• In January 2015, the Board approved Resolution No. 524, which amended Resolution No. 516 and updated Policy No. 600-007 authorizing the President/CEO to: 1. Include in and out of market advertising/marketing support since all previous Resolutions regarding marketing support only applied to in market (Reno/Tahoe area) for passenger airlines and/or Air Cargo Carriers. 2. Allow for incentives for service offered on a seasonal basis or a scheduled charter flight.
• In January 2018, the Board approved Resolution No. 535, which amended Resolution No. 524 and updated Policy No. 600-007 authorizing the President/CEO to: 1. Increase the Advertising/Marketing Support for New Carriers and New Domestic and International Routes.
• In October 2018, the Board approved Resolution No. 539, which amended Resolution No. 535 and updated Policy No. 600-007 authorizing the President/CEO to: 1. Limit the financial incentives for airlines commencing new, non-stop domestic service from RNO to unserved markets, while incentivizing key targeted, unserved domestic markets with additional funding. 2. Prorate certain marketing and advertising incentives, as well as airport rental and landing fee incentives, if service is less than five times weekly.
Discussion
The proposed amendment to the current Resolution (No. 539), and update of Policy No. 600-007, governing financial incentives offered to Airline and Dedicated Cargo Carriers would;
Clarify the historical and current practice of waiving airport rental and landing fees for a New Airline, regardless of the destination. When a New Airline begins service at RNO, the Airport Authority has been and will continue to waive airport rental and landing fees. These fees would follow those adopted in Resolution No. 539, as outlined below:
• Airport Rental Fees and Landing Fees for New Airlines • Waive at 100% for a maximum of 12 months o on a six (6) moths on and six (6) months off basis • For a maximum of two (2) flights per day per destination • For a maximum of two (2) destinations
The amendment would also clarify the following key points:
• Marketing support is limited to a maximum of two (2) destinations per Airline within a 12 month period • Marketing support can be additive Airline Incentive Policy # 20(01)-06 January 9, 2020 Board Meeting Page 3 of 4
• Service can be seasonal, provided it is for a New Passenger Airline, a new Public Charter and/or a new Targeted service.
Additionally, this amendment would allow RTAA to offer airline incentives to Public Charters. Specifically, this applies to Federal Aviation Administration (FAA) Part 135 air carriers, under Department of Transportation (Dot) 14 Code of Federal Regulations (CFR) Part 380 that function as a public charters, selling tickets to the public and offering scheduled operations on a Seasonal or year-round basis.
These types of operators do not qualify for incentives under the current RTAA Incentive Policy 600-007. However, if the Board were to adopt this resolution, the incentives offered in this case would be based on the newly established criteria outlined in Policy 600-007, found below:
• New Public Charters o Airport Rental Fees and Landing Fees • Operating through the Howard W. Cannon Terminal • Waive for a maximum of 12 months, on a six (6) months on and six (6) months off basis • Operating service from a location at RNO other than from the Howard W. Cannon Terminal • Airport rental fees are not applicable • Landing fees to be reimbursed based on revenue received by RTAA • Reimbursed for a maximum of six (6) months o Marketing Support • Operating through the Howard W. Cannon Terminal • $50,000 in marketing support • Operating service from a location at RNO other than from the Howard W. Cannon Terminal • $25,000 in marketing support
Lastly, this amendment requires an Airline to have an Agreement or an Airline Operating Agreement with the RTAA in order to qualify for and receive incentive benefits.
Fiscal Impact
At this time, there is no fiscal impact on the current budget.
Advertising/marketing support, to the extent available, is funded using aviation fuel tax revenue derived from a one cent tax on jet or turbine powered aircraft fuel at RNO. This source of funding, authorized under Nevada Revised Statutes (NRS) 365.545, may be used to promote the use of an airport including increasing the number and availability of flights. Should fuel tax be insufficient, the RTAA will supplement this program using internal funding generated by Airport operations.
The cost of this program does not impact other carriers' rates and charges at RNO.
Committee Coordination
This item is scheduled to be presented at the January 7, 2020 Finance and Business Development Committee. Airline Incentive Policy # 20(01)-06 January 9, 2020 Board Meeting Page 4 of 4
Recommended Motion It is hereby recommended that the Board adopt the following motion: "It is hereby moved that the Board adopts Resolution No. 544: Amending Resolution No. 539 - A Resolution Adopting an Update to Policy No. 600-007 on the Financial Incentives for Airline and Dedicated Cargo Carriers." MMMittijk RNO Airline Incentives - One-Sheet Marketing and Advertising Support Airport Rental and Landing Fee Waivers New Passenger Airline $50,000 Through Howard W. 100% waivers for a maximum of 12 months* regardless of destination Cannon (HWC) Terminal Thru HWC $50,000 100% waivers for a maximum of 12 months* Terminal regardless of destination New Public Charter Non-HWC Airport rental fees are NOT waived. Landing Fees $25, 000 Terminal reimbursed based on revenue received by RTAA for a regardless of destination Service maximum of 6 months 5 to 7 weekly flights $25,000 5 to 7 weekly flights 100% $25,000 4 weekly flights $20,000 For a maximum of 4 weekly flights 75% New Destination for Max 3 weekly flights $15,000 6 months* 3 weekly flights 50% domestic service (Prorated) 2 weekly flights $10,000 (Prorated) 2 weekly flights 25% 1 weekly flight none 1 weekly flight none 5 to 7 weekly flights 100% New Destination for For a maximum of 4 weekly flights 75% targeted domestic $25,000 12 months* 3 weekly flights 50% service (Prorated) 2 weekly flights 25% 1 weekly flight none New Destination for $75,000 100% waivers for a maximum of 12 months* international service New Dedicated Cargo $25,000 100% waivers for a maximum of 12 months* Carriers * Waivers (or reimbursements where applicable) are applied on a six (6) months on and six (6) off basis. - Airport rental fees and landing fees will be waived for a maximum of two (2) flights per day per destination, for a maximum of 12 months, and for a maximum of two (2) destinations. - Signatory airlines are not eligible for airport rental fee waivers. - Service can be Seasonal, provided it is for a New Passenger Airline, a new Public Charter and/or a new Targeted service. - Marketing support is also limited to a maximum of two (2) destinations per Airline within a 12 month period. - Marketing support can be cumulative. RESOLUTION NO. 544:
A RESOLUTION AMENDING RESOLUTION NO. 539: A RESOLUTION ADOPTING AN UPDATE TO POLICY NO. 600-007 ON THE FINANCIAL INCENTIVES FOR AIRLINE AND DEDICATED CARGO CARRIERS TO THE RENO-TAHOE INTERNATIONAL AIRPORT
WHEREAS, the Reno-Tahoe Airport Authority's Strategic Priority # 1 is Air Service and Cargo Development as identified in the FY 2019-2023 Comprehensive Strategic Plan; and
WHEREAS, increased air service and cargo service is vital to the economy of the Reno-Tahoe region; and
WHEREAS, the Federal Aviation Administration pennits airport revenue to be used for the full costs of activities directed toward promoting competition at an airport, new air service, and in and out of market Advertising/Marketing support; and
WHEREAS, the Reno-Tahoe International Airport is competing for increased passenger/cargo traffic with communities and airports that are offering financial incentives; and
WHEREAS, the Reno-Tahoe Airport Authority desires to establish a competitive policy to establish financial incentives that may be offered by the Airport Authority to a New Passenger Airline, new Public Charter, new Dedicated Cargo Carrier and/or New Destination; and
WHEREAS, airlines seeking to participate in the incentive program, must complete the Air Service Incentive Program Application form within sixty (60) days of announcement of the qualifying air service; and
WHEREAS, an Airline must have an Agreement or an Airline Operating Agreement with the RTAA in order to qualify for and receive incentive benefits: and
WHEREAS, if the airline does not meet their minimum schedule level of service for the proposed route(s), as identified in the Air Service Incentive Program Application, then all market support amounts paid by RTAA may require reimbursement; and
WHEREAS, the parent company of an Airline and its subsidiaries are considered as one Airline; and
WHEREAS, the President/CEO has the authority to negotiate financial incentive, to temporarily waive or discount airport fees, and to authorize in and out of market Advertising/Marketing support for a maximum of 12 months to a New Passenger Airline providing service to/from a New Destination or an existing destination from the Reno- Tahoe International Airport; and Resolution No. 544 — Adopting Updated Policy No. 600-007 Page 2 of 3 WHEREAS, the President/CEO has the authority to negotiate financial incentive, to temporarily waive, reimburse, or discount airport fees, and to authorize in and out of market Advertising/Marketing support for a maximum of 12 months to a new Public Charter providing service to/from a New Destination or an existing destination from the Reno-Tahoe International Airport; and
WHEREAS, the President/CEO has the authority to negotiate financial incentive, to temporarily waive or discount airport fees, and to authorize in and out of market Advertising/Marketing support for a maximum of six (6) months to a Passenger Airline or a Public Charter to a New Destination for domestic service from the Reno-Tahoe International Airport; and
WHEREAS, the President/CEO has the authority to negotiate financial incentive, to temporarily waive or discount airport fees, and to authorize in and out of market Advertising/Marketing support for a maximum of 12 months to a Passenger Airline or a Public Charter to a New Destination for targeted domestic service from the Reno-Tahoe International Airport; and
WHEREAS, the President/CEO has the authority to negotiate financial incentive/inducements, to temporarily waive or discount airport fees, and to authorize in and out of market Advertising/Marketing support for a maximum of 12 months to a Passenger Airline or a Public Charter to a New Destination for international service from the Reno-Tahoe International Airport; and
WHEREAS, Airlines are encouraged to offer daily nonstop scheduled passenger service; if service is less than five times weekly, Advertising/Marketing support, as well as waivers to Airport Rental Fees and Landing Fees, where applicable, will be prorated accordingly; and
WHEREAS, the President/CEO has the authority to negotiate financial / incentive/inducements, to temporarily waive or discount airport fees, and to authorize in and out of market Advertising/Marketing support for a maximum of 12 months to a New Dedicated Cargo Carrier from the Reno-Tahoe International Airport; and
WHEREAS, New Destination is defined as one without current nonstop service. Airlines are not eligible for incentives if they have previously received incentives for the same destination within the past 12 months.
WHEREAS, service can be Seasonal, provided it is for a New Passenger Airline, a new Public Charter and/or new Targeted service; and
WHEREAS, a copy of Policy No. 600-007 referred to herein is attached hereto and made a part hereof.
NOW, THEREFORE, BE IT RESOLVED by the members of the Board of Trustees of the Reno-Tahoe Airport Authority that this Resolution on incentives updates Policy No. 600-007. Resolution No. 544 — Adopting Updated Policy No. 600-007 Page 3 of 3 On motion by Trustee , second by Trustee , the foregoing Resolution was passed and adopted this 9th day of January, by the following vote of the Board:
AYES:
NAYS:
ABSENT: ABSTAIN:
Chairwoman Carol Chaplin
ATTEST:
Secretary Shaun Carey Reno-Tahoe Airport Authority Airline Business Development Depat tment Policy and Procedures Manual
INCENTIVE POLICY FOR AIRLINE AND DEDICATED CARGO CARRIERS Policy Number 600-007
PURPOSE
The purpose of this policy is to establish specific guidelines for INCENTIVES that may be offered by the Reno-Tahoe Airport Authority (RTAA) to any New Passenger or Incumbent Airline(s), Public Charter and/or Dedicated Cargo Carrier(s) entering the Reno-Tahoe International Airport (RNO) market place, providing it meets the established criteria defined below.
In establishing the criteria, unless the context otherwise requires, terms will be defined as follows:
• "Agreement" for a Signatory Airline, shall refer to the Airline Lease and Use Agreement. In the case of a non-signatory airline, it shall refer to the Airline Operating Agreement. • "Airline" means a person, company, partnership or corporation engaged in the business of transportation by air of persons, cargo or mail operating under Federal Aviation Regulation Part 121 and/or 135. • "Airport Rental Fees" shall include counter space, office space and holdroom space or per turn charge for carriers operating through the Howard W. Cannon Terminal. • "Dedicated Cargo Carrier" means an airline dedicated to the transport of cargo, not a Passenger Airline that also carries cargo. • "Incumbent Airline" means an existing airline that currently serves RNO. • "New Destination" is defined as one without current nonstop service. Airlines are not eligible for incentives if they have previously received incentives for the same destination within the past 12 months. • "New Passenger Airline" is defined as one without 12 months prior service from the RNO. Airlines are not eligible for incentives based on mergers or acquisitions of existing RNO airlines or destinations. • "Passenger Airline" means an airline dedicated to the transport of passengers that is not a Public Charter. • "Public Charter" is a Federal Aviation Administration (FAA) Part 135 air carrier under Department of Transportation (DOT) 14 Code of Federal Regulations (CFR) Part 380 that functions as a public charter, selling tickets to the public and offering scheduled operations on a Seasonal or year-round basis. • "Seasonal" is defined as any scheduled service, one or more times per week, that upon announcement is not operated on a published schedule pattern within every month of the year (January through December), but is operated for more than 90 days, but less than 365 days in one calendar year.
1 Reno-Tahoe Airport Authority Airline Business Development Department Policy and Procedures Manual
• "Signatory Airline" means an Airline that leases at least one (1) holdroom, one (1) ticket counter position (two agent positions), and other space in the Howard W. Cannon Teiminal deemed sufficient by the RTAA to support its operation, provided that the total of Preferential Use Premises leased in the Howard W. Cannon Terminal is at least 3,000 square feet, and that the Airline has an Agreement with the RTAA for same.
This policy is limited to a maximum of two (2) destinations per Airline within a 12 month period. It specifically addresses and is limited to meaningful, scheduled and public service under one of the following conditions:
• Service can be Seasonal, provided it is for a New Passenger Airline, a new Public Charter and/or new Targeted service. • A New Passenger Airline which provides non-stop service to/from a New Destination or existing destination(s) from RN 0; • A Public Charter which provides non-stop service to/from a New Destination or existing destination(s) from RNO • A Passenger Airline which provides service to/from a New Destination(s) • A new Dedicated Cargo Carrier;
Under the above conditions, an Airline may qualify for airport rental fee waivers and/or landing fee waivers, as well as cumulative marketing support. The "Procedures" section of this document outlines the specific criteria required to qualify for these three (3) types of Airline incentives and how they will be applied.
This policy details the RTAA Board of Trustees' approved guidelines, limitations, and authority delegated to the President/CEO to waive or discount specific airport rental fees and landing fees described in the Agreement, as well as the Airline Operating Agreement. The policy also addresses specific marketing programs that may be undertaken by the RTAA to support a New Passenger Airline, a new Public Charter, a new Dedicated Cargo Carrier, and/or a New Destination.
RTAAJ REFERENCE
The President/CEO and/or his/her designee are responsible for administering this policy. This policy and action is permitted under the Federal Aviation Administration's Air Carrier Incenvtive Program Guidebook.
This policy supports RTAA Resolution No. 544, A Resolution Adopting a Policy to incorporate Public Charters, clarify fee waivers for New Passenger Airlines, and further define incentive limitations, dated January 9, 2020.
2 Reno-Tahoe Airport Authority Airline Business Development Department Policy and Procedures Manual
POLICY
The airport rental fees, landing fees, and marketing support considered in this policy are to be based on the specific rates for the fiscal year in which the incentive(s) is being considered. It is understood that the total value of various incentives will vary based on the specific level of air service being considered (number of flights and type of aircraft being flown).
Key components of this policy include the following:
• Airlines seeking to participate in the incentive program must complete the Air Service Incentive Program Application form within sixty (60) days of announcement of the qualifying air service. • An Airline must have an Agreement or an Airline Operating Agreement with the RTAA in order to qualify for and receive incentive benefits. • If the Airline does not meet their minimum scheduled level of service for the proposed route(s), as identified in the Air Service Incentive Program Application, then all marketing support amounts paid by RTAA may require reimbursement. • The parent company of an Airline and its subsidiaries are considered as one Airline.
PROCEDURES
1. The procedures for this policy include waiving airport rental fees and landing fees for a maximum of 365 days. It also includes providing in and out of market Advertising/Marketing support (consistent with FAA guidelines, which prohibit destination marketing) for up to 365 days. Incentives may be offered to any New Passenger Airline or Incumbent Airline or Dedicated Cargo Carrier or Public Charter who meets the conditions outlined in the purpose section.
A. AIRPORT RENTAL FEES AND LANDING FEES*
D New Dedicated Cargo Carrier o Waive for a maximum of 12 months, on a six (6) months on and six (6) months off basis, for a maximum of two flights a day. D New Passenger Airline or Public Charter providing service to/from a New Destination from RNO or to/from existing destination(s) from RNO o Operating through the Howard W. Cannon Terminal • Waive for a maximum of 12 months, on a six (6) months on and six (6) months off basis o Offering service from a location at RNO other than from the Howard W. Cannon Terminal • Airport rental fees are not applicable • Landing fees to be reimbursed based on revenue received by RTAA • Reimbursed for a maximum of six (6) months 3 Reno-Tahoe Airport Authority Airline Business Development Department Policy and Procedures Manual
New Destinations for domestic service o Waive for a maximum of six (6) months o Prorated based on number of flights per week Weekly Flights 5 to 7 100% 4 75% 3 50% 2 25% 1 0% New Destinations for targeted domestic service o Waive for a maximum of 12 months, on a six (6) months on and six (6) months off basis o Prorated based on number of flights per week Weekly Flights 5 to 7 100°,0 4 75% 3 50% 2 25% 1 0% New Destinations for international service o Waive for a maximum of 12 months, on a six (6) months on and six (6) months off basis.
*Exceptions & clarifications to the above:
o Airport rental fees and landing fees will be waived for a maximum of two (2) flights per day per destination • for a maximum of 12 months • for a maximum of two (2) destinations o In the case that RTAA landing fee revenue is collected by another entity, the RTAA landing fees will not be waived. Rather, the amount remitted to the RTAA will be reimbursed to the Airline, as outlined above. If no amount of revenue collected is remitted to the RTAA, none shall be waived.
o Incumbent Airlines are encouraged to offer daily nonstop scheduled passenger service; if service is less than five times weekly, waivers to Airport Rental Fees and Landing Fees will be prorated accordingly.
4 Reno-Tahoe Airport Authority Airline Business Development Depal Iment Policy and Procedures Manual
Weekly Flights 5 to 7 100% 4 75% 3 50% 2 25% 1 0%
o Incumbent Airlines that are Signatory Airlines are limited to landing fee waivers only.
B. MARKETING SUPPORT — Consisting of one or more of the following:
> New Dedicated Cargo Cartier commencing service from RNO o $25,000 in marketing support • New Passenger Airline or Public Charters providing service to New Destinations or existing destination(s) from RNO o Operating through the Howard W. Cannon Terminal 1. $50,000 in marketing support o Offering service from a location at Reno Tahoe International Airport other than from the Howard W. Cannon Terminal 1. $25,000 in marketing support • New Destinations for domestic service o Up to $25,000 in marketing support for Incumbent Airline, New Passenger Airline, or new Public Charter commencing service to a New Destination o Airlines are encouraged to offer daily nonstop scheduled passenger service; if service is less than five times weekly, the above marketing incentive benefit will be prorated accordingly.
Weekly Flights 5 to 7 $25,000 4 $20,000 3 $15,000 2 $10,000 $0
New Destinations for targeted domestic service o Additional marketing support of $25,000 for Incumbent Airline, New Passenger Airline, or new Public Charter commencing service to New Destination for targeted domestic service.
• New Destinations for international service o $75,000 in marketing support for Incumbent Airline, New Passenger Airline, or new Public Charter commencing a new international route from RNO. 5 Reno-Tahoe Airport Authority Airline Business Development Depaitiiient Policy and Procedures Manual
> *Exceptions & clarifications to the above: o Marketing support is limited to a maximum of two (2) destinations per Airline within a 12 month period.
2. New Destinations for targeted service include Elko Regional Airport (EKO) and the top twenty-four (24) unserved destinations based on the most recent armual market demand. Current market demand is based on U.S. Department of Transportation (DOT) passenger data, which is updated on a quarterly basis, and therefore subject to change. (Please see Appendix A for current list of New Destinations for targeted service).
3. The above incentives are the maximum level of the President/CEO's authority. Under special circumstances, it may be necessary to increase these incentives. When that occurs, the President/CEO will request authorization from the Board of Trustees.
Manly M. Mora, A.A.E., President/CEO Date
6 APPENDIX A
Reno-Tahoe 4 Airport Authority dk
RENO-TAHOE AIRPORT AUTHORITY RENO-TAHOE INTERNATIONAL AIRPORT INCENTIVES POLICY FOR PASSENGER AIRLINE AND CARGO SERVICES
The list of current Targeted Domestic Service Destinations as of December 17, 2019
Code Airport PDEWs Code Airport PDEWs AUS Austin 79 HOU Houston-Hobby 37 BOS Boston 64 GEG Spokane 37 MCO Orlando 60 HNL Honolulu/Oahu 37 SNA Orange County 53 DCA Washington-National 36 DTW Detroit 46 MCI Kansas City 35 BWI Baltimore 45 BOI Boise 35 BNA Nashville 45 BUR Burbank 34 PHL Philadelphia 43 MSY New Orleans 32 SAT San Antonio 43 CLT Charlotte-Douglas 32 EWR Newark 43 ABQ Albuquerque 32 ONT Ontario 40 IAD Washington-Dulles 32 TPA Tampa 39 EKO Elko, NV, US STL St. Louis 38 Source: U.S. DOT O&D Passenger Survey, Year Ending 2Q 2019 PDEWs — Passengers Daily Each Way
*Please refer to Reno-Tahoe Airport Authority Policy Number 600-007, Section B.2.
New Destinations for targeted service include Elko Regional Airport (EKO) and the top twenty- four (24) unserved destinations based on the most recent annual market demand. Current market demand is based on US. Department of Transportation (DOT) passenger data, which is updated on a quarterly basis, and therefore subject to change.
Targeted Markets 1 of 1 10-9-2019
EXHIBIT E.1 — NEW PASSENGER AIRLINE Reno-Tahoe International Airport (RNO) Air Service Incentive Program Application
Air Carrier: Date:
Individual Submitting Application: Title: (Print Name) Phone Number: Email:
Mailing Address: City/State/Zip Code:
Authorizing Signature:
Incentives Requested:
Effective Date Market(s)/Route(s) A/C Type(s) No. x per Week/ Type of Service (i.e. of Service* to be Served & # of Seats Frequencies seasonal, year-round)
* Only flights that qualify for incentives under Reno-Tahoe Airport Authority (RTAA) Policy No. 600-007 are eligible to receive them. The policy is limited to a maximum of two (2) destinations per airline within a 12 month period.
FOR RTAA USE
Waiver of Airport Terminal Rental Fees: Ticket Counter Per Use Charges Ticket Office Space Rent Gate Per Turn Charges Space Rent for ( ) number of Kiosks
Airport Landing Fees: For a maximum of 12 months (applied on a six months on and 6 months off basis) Waived
Marketing Support: (additive) New Passenger Airline at $50,000 + New Destination for domestic service (prorated up to $25,000 based on # of flights per week) $ + New Destination for targeted domestic service at $25,000 + New Destination for international service at $75,000 Grand Total in Targeted Marketing Support: $
Evaluated by: Date:
Approved: Rejected:
Signed By: Date: RTAA President/CEO EXHIBIT E.2 — NEW PUBLIC CHARTER Through Howard W. Cannon Terminal Service Reno-Tahoe International Airport (RNO) Air Service Incentive Program Application
Air Carrier: Date:
Individual Submitting Application: Title: (Print Name) Phone Number: Email:
Mailing Address: City/State/Zip Code:
Authorizing Signature:
Incentives Requested:
Effective Date Market(s)/Route(s) A/C Type(s) No. x per Week/ Type of Service (i.e. of Service* to be Served & # of Seats Frequencies seasonal, year-round)
* Only flights that qualify for incentives under Reno-Tahoe Airport Authority (RTAA) Policy No. 600-007 are eligible to receive them. The policy is limited to a maximum of two (2) destinations per airline within a 12 month period.
FOR RTAA USE
Waiver of Airport Terminal Rental Fees: Ticket Counter Per Use Charges Ticket Office Space Rent Gate Per Turn Charges Space Rent for (_) number of Kiosks
Airport Landing Fees: For a maximum of 12 months (applied on a six months on and 6 months off basis) Waived Marketing Support: (additive) New Public Charter at $50,000 + New Destination for domestic service (prorated up to $25,000 based on # of flights per week) $ + New Destination for targeted domestic service at $25,000 + New Destination for international service at $75,000 Grand Total in Targeted Marketing Support: $
Evaluated by: Date:
Approved: Rejected:
Signed By: Date: RTAA President/CEO EXHIBIT E.3 — NEW PUBLIC CHARTER Non-Howard W. Cannon Terminal Service Reno-Tahoe International Airport (RNO) Air Service Incentive Program Application
Air Carrier: Date:
Individual Submitting Application: Title: (Print Name) Phone Number: Email:
Mailing Address: City/State/Zip Code:
Authorizing Signature:
Incentives Requested:
Effective Date Market(s)/Route(s) A/C Type(s) No. x per Week/ Type of Service (i.e. of Service* to be Served & # of Seats Frequencies seasonal, year-round)
* Only flights that qualify for incentives under Reno-Tahoe Airport Authority (RTAA) Policy No. 600-007 are eligible to receive them. The policy is limited to a maximum of two (2) destinations per airline within a 12 month period.
FOR RTAA USE
Waiver of Airport Terminal Rental Fees: N/A
Airport Landing Fees: For a maximum of 6 months Reimbursement based on amount remitted to the RTAA
Marketing Support: (additive) New Public Charter (non-HWC Terminal) at $25 000 + New Destination for domestic service (prorated up to $25,000 based on # of flights per week) $ + New Destination for targeted domestic service at $25,000 + New Destination for international service at $75,000 Grand Total in Targeted Marketing Support: $
Evaluated by: Date:
Approved: Rejected:
Signed By: Date: RTAA President/CEO
Federal Aviation Administration
Air Carrier Incentive Program Guidebook:
A Reference for Airport Sponsors Cover and Above Photo: FAA
This publication provides guidance to airport sponsors interested in offering promotional incentives to attract new air carrier service at federally obligated facilities.
For additional information and assistance, airport sponsors may contact their FAA Airports District Office. See pages 25-27.
Published by: FAA Office of Airports Airport Compliance and Field Operations AC0-1
800 Independence Avenue, SW Washington, DC 20591
202.267.3085 Differences: Destination Marketing
A properly structured and administered Air Carrier Incentive Program may enhance air carrier service at an airport and may create an opportunity to increase traffic. However, a destination marketing program promotes a region, attraction, or business. The goal of the latter focuses Photo: King County Boeing Field on increasing regional revenue, not an airport's services or facilities. While the airport's services and facilities may benefit from a destination marketing program, the sponsor may not use airport revenue to promote any kind of general economic development. This includes activities, materials, and expenses related to tourism marketing, showcasing community events or businesses, and/or featuring non-airport locations, services, and attractions. In accordance with Federal statutes (49 U.S.C. § 47107(1)) and the FAA's Policy and Procedures Concerning the Use of Aitport Revenue (64 Fed. Reg. 7696, February 16, 1999) (Revenue Use Policy), airport revenue may be used to cover: • The full costs of activities directed at promoting competition at an airport III Public and industry awareness of airport facilities and services • New air service and competition at the airport (other than direct subsidy of air carrier operations prohibited by Section VI.B.12 of the Revenue Use Policy — see "New Service" on Page 6) • A share of promotional expenses such as marketing, advertising, and related activities designed to increase travel using the airport (must meet requirements prescribed in the Revenue Use Policy, Section V.A.3 and include specific information about the airport) Airport revenue may NOT cover: • Destination or tourism marketing • Any activities, materials, or expenses for general economic development not related to the airport (see Section VI.B.3.) • Marketing or promotional activities unrelated to airports or airport systems (see Section VI.B.4.) 3 Four Steps to Creating an Air Carrier Incentive Program
Step Review and understand Airport Sponsor Assurances and 1 applicable laws and policies.
Step Identify the goals of the program and the types of service that 2 may be covered under incentive programs.
Step Define incentive program timelines.
Step 4Design a properly structured incentive program.
If after reviewing this handbook, you have additional questions, you may contact your local FAA Airports District Office. You also may submit your proposed program to FAA for a compliance review. This 4M ';467WAV AV, &Mr process can identify -- and help sponsors Photo: FAA eliminate -- potential problems. See pages 25-27 for FAA offices and contact information. Review and understand Airport Sponsor 1 Assurances and applicable laws and policy.
When airport sponsors accept funds from FAA-administered airport financial assistance programs, they must agree to comply with certain contractual obligations or assurances. Assurances appear in the application for federal assistance and become part of the final grant offer. They also are included in restrictive covenants to property deeds. An example of applicable policy that may affect air carrier incentive programs includes:
Exclusive Rights and Economic Nondiscrimination. The airport sponsor must make the proposed incentives (e.g., reduced landing fees) available to all similarly situated air carriers that provide the specified new service in accordance with Grant Assurances 22 and 23. Incentives may not be based on aircraft type since this could unreasonably exclude certain carriers that do not operate the type of aircraft identified. Incentive levels may vary, however, based on the category of new service offered (for examples, see Question 9 on Page 10). The program must identify the incentives available for each category. The cost of providing incentives to one or more air carriers cannot be included in the rate base for air carriers not participating in the incentive program without their express permission. For more information and examples. see Pages 13, 22, and 23.
Sponsors also must ensure incentive programs comply with all applicable laws and policies, including, but not limited to:
II FAA's Policy and Procedures Concerning the Use of Airport Revenue, 64 Fed. Reg. 7696 (February 16, 1999), 49 U.S.C. §§ 47107(b), 47133 (Revenue Use Policy);
• FAA's Policy Regarding Airport Rates and Charges, amended at 73 Fed. Reg. 3310 (July 10, 2008); originally published at 61 Fed. Reg. 31994 (June 21, 1996), 49 U.S.C. § 47129(b) (Rates and Charges Policy); and
• 49 U.S.C. § 41713 Preemption (Prices, Routes, and Service).
5 2 Identify goals of the program and the types of service that may be covered.
New Service. FAA allows promotional incentives to air carriers for new service to (a) increase travel using the airport and/or (b) promote competition at the airport. Incentive programs may not be designed for the purpose of promoting general economic development. See page 3, "Destination Marketing."
FAA defines new service as (a) service to an airport destination not currently served, (b) nonstop service where no nonstop service is currently offered, (c) new entrant carrier, and/or (d) increased frequency of flights to a specific destination. (In the last case, the incentive would be available only on the added flights.) FAA does not recognize repeated seasonal service, upgrade of equipment type, or increased number of seats on 0 I existing flights as new service.
Destination. The airport sponsor may offer marketing incentives (e.g., reduced landing fees) to attract new service to targeted airport 1 destinations. The airport sponsor identifies the new service it is % seeking. The airport sponsor is not obligated to provide an incentive for those destinations not targeted by the sponsor.
NOTE Incentives v. Subsidies Throughout this booklet, there are numerous references to incentives and subsidies. The FAA's Revenue Use Policy maintains a 4 distinction between subsidizing air carriers and the waiving of fees as incentives; summarily the Policy prohibits the former.
A subsidy is direct payment of airport revenue to a carrier or to any provider of goods or services to that carrier, in exchange for additional service by the carrier.
An incentive is any fee reduction, fee waiver, or use of airport revenue for acceptable promotional costs, where the purpose is to encourage an air carrier to increase service at the airport. See Page 17 for Acceptable v. Unacceptable Incentives 6 Frequently Asked Questions Program Goals and Types of Service
Keywords: New entrant Equipment/Seats Routes Class of service Pro-rated incentive Limits New service Signatory carriers Low cost carrier Request for Proposals (RFP) Targeting/tailoring incentives
What You May Do:
Ql: May I offer incentives to new entrants only and not to incumbent air carriers? Al: Yes, but the incentives in that case must be limited to 770 more than one year After one year, the new entrant would be considered a tenant air carrier (similarly situated) and no longer a new entrant. It then would be similarly situated to any other tenant air carrier on the airport. In addition, the incentive must be available to all new entrants on the same basis. The incentive program may not select one new entrant and deny the program to another similarly situated new entrant as that could be unjustly discriminatory
Q2: May I offer an incentive to a new entrant on a route already flown by an incumbent without offering the same incentive to the incumbent? A2: Yes, but only fif3r the first year This is allowed because the new entrant would not be similarly situated to the incumbent. However after one yew; the FAA would consider the air carriers offering service on the same route to be similarly situated; in that case, you may not offer an incentive to one without also offering it to the other See page 16 for the differences between one and two year limits. Q3: If the incentive is for new daily service, may I offer a pro-rated incentive for less than daily service? A3: Yes, but you would not be required to do so. The airport sponsor may elect to offer an incentive for less than the specified service. The policy on this issue should be clearly explained in the incentive program, and may not be unjustly discriminatory. 7 Frequently Asked Questions 2 Program Goals and Types of Service
What You May Do (continued):
Q4: Do I have to offer the same incentive for incumbents already serving the destination I am choosing to incentivize? A4: You may or you may not, but there are restrictions either way. If you do, the incentive must be only fir new scheduled service to that destination without any loss in previously scheduled service to the same destination. For example, if the air carrier already offers three flights weekly to the destination being incentivized and adds two more flights under the incentive for a total offive.flights, the two additional flights would qualify* the incentive, but not the first three flights. lithe air carrier changes its schedule, adding two new flights but dropping one for a total of four flights to the named destination, the air carrier would qualibi for the incentive on one new flight only It is important to write the incentive program so that this is clear If you do not, you may only offer the incentive to the new entrant(s) for service on that mute only for up to one year After one year the new entrant would be considered similarly situated to incumbent carrier(s) and thereby no longer eligible fir an incentive only offered to new entrants providing service on that route.
Q5: May I specify that an air carrier will not qualify for a new service incentive if it had — and then canceled — service to that same destination within a specified period of time? For example, if an air carrier had service to the named destination previously, but cancelled that service within the last six months, could that air carrier be prevented from participating in the incentive program as new service? A5: Yes. An air carrier may be barred from participating in the incentive.* new service to a destination it previously served within a specified period of time. The incentive program must be clear on what the time period is and its limits, both looking.fbrward and looking back. The program may not be unjustly discriminatoty.
See page 9 for an example of new service eligibility requirements. Frequently Asked Questions Program Goals and Types of Service
What You May Do (continued):
Your airport wants to increase service to New City Airport ("END"). Airline A currently offers two flights per day. March Fli ht Schedule to "END"
In response to the incentive program, Airline A ceases Flight 112 and adds Flight 113; Airlines B and C start service to "END." Airline A is not eligible for the incentive program because Flight 113 replaced flight 112. Airline A did not increase service, it only changed its schedule; therefore, there is no additional service and thus it does not meet the program's criteria to increase service. Airlines B and C are eligible for the incentive because they added new service. November Fliciht Schedule to "END" Airline Fli•ht De. arture Time Airline A 111 8:00 am. Airline A 113 5:00 p.m. Airline B 222 8:00 a.m. Airline C 333 2:00,41.m.
Suppose Airline A retains its original schedule with Flight 111 departing at 8:00 a.m. and Flight 112 departing at 12:00 p.m., but also adds Flight 113 departing at 5:00 p.m. In the scenario below, Airline A's Flight 113 may be eligible for the incentive program because is it an additional flight and therefore qualifies as new service if the program's goal is to increase service. Airlines B and C also qualify for the new service incentive. However, if the program's November Fli.ht Schedule to "END" stated goal is to increase Airline Fli ht De arture Time competition, Airline A's new Airline A 111 8:00 a.m. flight would not be eligible; Airline A 112 12:00 p.m. Airlines B and C would only Airline A 113 5:00 p.m. be eligible for up to one year Airline B 222 8:00 a.m. at which time they would be Airline C 333 2:00 p.m. similarly situated to Airline A. Frequently Asked Questions Program Goals and Types of Service
What You May Not Do:
Q6: We are trying to attract a low cost carrier. May I offer an incentive only to a low cost carrier? A6: No. Incentives must be for new service, not for a specific type of carrier Targeting only low cost carriers would violate the grant assurance on economic nondiscrimination, and could possibly violate the exclusive rights grant assurance.
Q7: May an incentive be tailored for a particular air carrier? A7: No. All similarly situated air carriers must have the same opportunity to receive the same incentives under the same circumstances. Incentives may not be designed and offered to air carriers on an individual basis.
Q8: May the incentive be limited to air service provided by aircraft that must offer both coach service and either business or first class service? A8: No. Incentives may be based on routes selected by the airport sponsor, not on service or equipment provided by the air carrier
Q9: May the incentive be based on the type or size of aircraft? A9: No. Incentive levels may vary based on the category of new service offered. For example, incentives Ibr international destinations may be different from incentives for short hop ,flights, but all air carriers meeting the destination requirement specified must be offered a comparable incentive based on the goals of the air carrier incentive program. The program must identify the incentives available for each category. The program may not be unjustly discriniinatory.
Q10: Can the incentive apply only if the new service adds a certain number of seats to the market? A10: No. Incentives must be based on destinations the airport sponsor wishes to support, not equipment the air carrier chooses to use or the number of passengers who choose to use the new service.
10 Frequently Asked Questions Program Goals and Types of Service
What You May Not Do (continued): Your airport wants to offer incentives to airlines to add/begin March Flights service to New City Airport ("END"). In March, Airline A began offering two flights to "END" on 50 seat aircraft. It's now September and you want to increase service to "END" so END you implement an incentive program specifying this.
In November, two months after your incentive program began, Airlines B and C began offering new flights tci "END" also using 50 seat aircraft.
Also in November, Airline A upgraded November Flights its two existing flights from 50 seat aircraft to 126 seat aircraft, gave both flights new numbers, and moved the second flight to later in the day. In this scenario Airline A is not eligible for the incentive program because: 1.) the first two flights entered service in March, which was months before the incentive program began in September; and 2.) Airline A only increased its gauge of aircraft, it did not add an additional qualifying flight. See page 22 Or Airlines B and C, both offering new more information on service on 50 seat aircraft, are eligible. incremental discounts.
11 Frequently Asked Questions Program Goals and Types of Service
What You May Not Do (continued):
Q11: May incentives be limited to aircraft with at least a certain number of seats? All: No. Incentives must be based on the airport destinations the airport sponsor vvishes to support, not equipment the air carrier chooses to use.
You offer an incentive for airlines to begin service from Chicago to Reno.
• Uniworld Airlines begins once daily service using a CRJ-700. .• TransAmerican Airlines begins once daily service using a B737.
Both airlines are eligible for the same incentive.
Q12: May I limit the incentives to one incentive per air carrier? Al2: No. The incentives are for the destination, not the carrier You may limit the incentives per destination. This limitation must be clearly explained in the incentive program and may not be unjustly discriminatory.
12 Frequently Asked Questions 2 Program Goals and Types of Service
What You May Not Do (continued):
Q13: Do I have to consult with tenant air carriers before designing and initiating an incentive program, similar to a rates and charges consultation? A13: No. However, the airport sponsor may find it advisable to involve tenant air carriers in the development process to identifY any areas that may create red flags ft)r the sponsor, but it is not required. The cost of providing incentives to one or more air carriers cannot be included in the rate base for air carriers not participating in the incentive program without their express permission, so rates and charges will not be affected by the incentive program.
Q14: We have a residual airport use agreement with signatory air carriers. Do I have to consult with them before designing and implementing an air carrier incentive program? A14: No. Again, it is recommended, but not required. Since the airport sponsor cannot include the costs of the incentive program in the rate base without the express written permission of all air carriers, there is no direct negative impact to the air carriers, (However, the airport sponsor must ensure it complies with its own sig,natoly agreement.)
Q15: May I require an air carrier to be a signatory in order to qualify for an incentive? A15: No. Incentives must be offered on a nondiscriminatory basis to all air carriers meeting the airport's new service goals.
Q16: May I offer the incentive on a first-come, first served basis? A16: Possibly A small airport that can support only one carrier is encouraged to use a Request for Proposals (REP) to give every carrier an equal opportunity to be that one carrier Larger airports may set a cap on what they will spend in total fOr incentives, but the program should include a sufficient level of incentives to cover a number of carriers that may qualify.
13 Define incentive program timelines.
Now that you have identified the goals of the Sj,564 OSA. Mt4 359. program and the qualifying 326,5a 11 47,4 service(s) to be included in 14 Z4/6 the incentives, next we consider timelines. While a 12 IfP sponsor's air carrier incentive program may be ongoing for several years, each air carrier's incentive period should be limited to no more than two years except under special circumstances (e.g. new entrants, see page 7. Also, see page 16 for more information on the differences between incentive program time limits for new entrants versus incumbents).
The incentive program must be for a specified duration. Timelines for offering an incentive program may be staggered but the time period for each incentive offered to similarly situated, eligible carriers must be limited to no more than two years. (See page 16). Remember, an incentive program tests the viability of discrete markets. It is not a subsidy to air service. If the service cannot stand on its own after two years, it may not be viable at this time.
In this example, the Incentive Program started on January 1, 2008, and ends on December 31, 2012. Airlines participate in staggered tenns but none exceed two years and all must conclude when the program ends.
SAMPLE PARTICIPATION TIMELINES Air Carrier Incentives Begin End RedJet Airlines 03-01-08 02-28-10 Take Me There Air 10-15-08 10-14-10 Northern Airways 01-01-09 12-31-10 Air Plane 09-09-09 09-08-11 FlyAway Airlines 12-01-11 12-31-12
14 Frequently Asked Questions Define incentive program timelines.
Keywords: Time periods New destination New entrant Eligibility limits Incumbent
What You May Do:
Q17: If my airport does not have service to "NEW" airport and I offer an incentive, how long may that incentive last? A17: The incentive period must be limited and should be defined. The incentive period must not exceed two years for each qualifying air carrier based on each new destination. Since there currently is no service to "NEW" airport, any carrier that starts qzialiffing service under the incentive program is eligible for the incentive in accordance with your program's limit, but the time period for incentives for each participant should be no more than two years.
Q18: Do I have to limit my incentive program to two years? A18: No. The program itself may be for a longer period of time, which should be defined in the incentive program. (See "Sample Participation Timelines" graphic page 14.) However incentives fbr each carrier must be limited to no more than two years for each new qualifying service. Q19: Do I have to offer incentives for two years for each new destination I want to incentivize? A19: No. The airport sponsor may decide to offer the incentive for any period of time up to two years. This should be clearly explained in the incentive program.
Q20: May I offer the same incentive to both new entrant and incumbent carriers, but extend the new entrant carrier's incentive for a longer period of time after the first year? A20: No. After one year of service, the FAA considers all carriers to be similarly situated.
See page 16 for the differences between one and two year limits. 15 Frequently Asked Questions Define incentive program timelines.
What You May Do (continued):
Q21: May I limit eligibility to participate in the program to a relatively short period of time? For example, can I require airlines to apply to participate within 30 days and initiate service by a specified date? A21: The FAA may determine that such a requirement is unjustly discriminatory if it finds one or more air carriers had advance planning time. It is more reasonable to set up the incentive program to permit participation at different points within a given set of dates. Incentives will only apply after service is initiated.
One Year vs. Two Years
This booklet references one year time limits versus two year limits. There are two different time limits based on the way the incentive program is structured.
One-year time limits apply to Two-year time limits apply incentives for new entrants when when all air carriers (new the incumbent offering the same entrants & incumbents) are service is not getting any incentive. offered an incentive.
North Airport (NOA) currently offers Using the NOA to SOA scenario, if service to South Airport (SOA) provided NOA also included as part of its once daily by Fly Away Airlines. NOA incentive program added service to wants to increase competitive service to SOA and incumbent FlyAway began SOA, so it offers an incentive to new offering a second daily flight from entrant airlines without providing any NOA to SOA, then the second daily incentive to incumbent air carriers. flight would be eligible for the incentive. This type of incentive may RedJet Airlines establishes a presence at be available to incumbent and new NOA and begins once daily service entrant carriers for up to two years from NOA to SOA that is eligible for provided it is available to all air carriers the incentive program. FlyAway's adding the specified new service. existing service is not eligible for the incentive because the program is limited If NOA does not offer incumbents to new entrants; however, this type of incentives for added service, then the incentive must be limited to one year incentives to new entrants must end because a new entrant is deemed after one year because after a year of similarly situated to incumbent carriers service, the FAA considers all carriers to after one year. be similarly situated.
1 a Design a properly structured incentive program.
The final step is to structure the incentive program within acceptable parameters. While an airport may offer discounts or waivers of fees and rates as part of the program, the use of airport revenue to pay an air carrier to serve markets is strictly prohibited by FAA's Policy and Procedures Concerning the Use of Airport Revenue, 64 Fed. Reg. 7696 (February 16, 1999) (Revenue Use Policy). This section discusses acceptable versus unacceptable incentives an airport sponsor may offer as part of an air carrier incentive program in accordance with FAA policy and the sponsor's federal obligations. This section also covers permitted subsidies using tax revenue that is not subject to the Revenue Use Policy.
Acceptable Incentives. Incentives may include, but are not limited to, waiving or reducing landing fees, rental fees, or fuel flowage fees. An airport's rates and charges for air carriers not participating in the incentive program may not be impacted negatively by any incentive program without the carriers' express permission. Any financial deficit as a result of these incentives must be covered by other discretionary airport revenue or by non-airport revenue sources. The airport sponsor may use airport revenue to advertise the new service provided the airport is featured prominently in the advertising. Air carriers may be mentioned too. Unacceptable Incentives. Consistent with the Revenue Use Policy and statute, the airport sponsor may not use airport revenue for air carrier subsidies. Subsidies would include providing aircraft parts, free fuel, interest-free loans, pay for service, or any other form of direct or indirect air carrier subsidy. State or local taxes on aviation fuel (except taxes in effect on December 30, 1987) are considered to be airport revenue subject to the revenue-use requirement and may not be used in such an incentive program. (Note: While revenues ,from state taxes on aviation fuel may be used to support state aviation programs or for noise mitigation purposes, on or off the airport, the incentive and subsidy programs described here cannot be considered state aviation programs.)
17 Design a properly structured incentive program.
Non-airport revenue sources. FAA does not allow airport sponsors to use airport revenue subject to the Revenue Use Policy for air carrier subsidies under any circumstances. However, sometimes the sponsor may have separate tax revenue not subject to the Revenue Use Policy that could possibly be used for direct air carrier subsidies. For example, some airport authorities benefit from special tax districts, similar to school tax districts, in which local property owners pay a tax surcharge dedicated to support of the airport. The taxes are based on property location and value, and have no relation to use of the airport. The taxing authority may be either the sponsor or a non-sponsor. Revenue that is derived from such a tax imposed for the benefit of the airport, but on property not owned by the airport, is not considered airport revenue subject to the Revenue Use Policy. Thus, revenues from a property tax for 0 the benefit of the airport could be used for air carrier subsidies. In those cases, the airport sponsor must make this subsidy available to all similarly situated air carriers providing the same level of new service. (Whenever the airport has revenue not subject to the Revenue Use Policy that it intends to use for subsidies, the sponsor must ensure these funds are maintained in a separate account and are not comingled with other airport revenue.)
In addition, under certain circumstances, a local government or 0 community organization (e.g., local chamber of commerce) not affiliated with the airport sponsor may offer a subsidy to one air carrier without making the same offer available to all similarly situated air carriers. In those cases, the sponsor must not be a party to the agreement and must not be involved in negotiating, implementing, or monitoring the program in any manner.
EAS and SCASDP. The Air Carrier Incentive Program is NOT related to the Essential Air Service (EAS) or the Small Community Air Service Development Program (SCASDP), both of which are administered by the Office of the Secretary of Transportation. (For more information on these programs, visit www.dagov)
18 Frequently Asked Questions 4 Design a properly structured incentive program.
Keywords: Landing fees Airport revenue Rents Ticket prices Fuel flowage fees Cash incentives Rebates Guarantees Marketing/advertising Increased weight Payments Rate base Loans FAA fimds/PFCs
Acceptable Incentives Include:
Q22: May I reduce the landing fee down to zero? A22: Yes. You may charge a reduced or no landing fee for the incentive period. However, an airport may not have the other carriers make up the difference lbr the lost revenue in the landing fee requirement because of the incentive program. In addition, the airport sponsor retains the obligation to make the airport as self-sustaining as possible under the specific circumstances existing at that airport.
Q23: May I reduce terminal rents down to zero? A23: Yes. An airport may charge reduced or no terminal rents (zero) for the incentive period. Howevet; an airport may not have the other carriers with terminal leases make up the difference in the Photo: FAA terminal rent requirement because of the incentive program. In addition, the airport sponsor retains the obligation to make the airport as self-sustaining as possible under the specific circumstances existing at that airport.
19
Frequently Asked Questions Design a properly structured incentive program.
Acceptable Incentives Include (continued):
Q24: May I offer a reduced or no fuel flowage fee? A24: Yes. An airport may charge a reduced or no fuel
‘ flowage fee for the incentive period. An airport may not, however; provide free fuel. It may not incorporate the lost revenue because of the incentive program into the airport rate base to be See pages 6 & 17 fur immure covered by other air carriers. information on incentives vs. subsidies In addition, the sponsor retains the obligation to make the airport as self:sustaining as possible under the specific circumstances existing at that airport.
Q25: I am offering an incentive that includes reduced landing fees. May I collect the full landing fees and then provide a rebate of fees when the air carrier meets the designated threshold to earn the incentive? A25: Yes. However; the airport sponsor must be careful to ensure the rebate does not resemble a subsidy. The airport sponsor could apply the rebated landing fees as a credit to the next period where landing fees would be collected. The airport sponsor should not issue a check fbr the rebate.
Q26: I am offering an incentive that includes marketing and advertising assistance. May I just write a check to the air carrier to cover the documented costs for these services? A26: The FAA recommends that the airport sponsor pay marketing and advertising costs directly to the entity providing the service. This reduces the risk and appearance of providing a direct air carrier subsidy. It also provides greater control for the sponsor Airport revenue may be used for a proportionate share of marketing and advertising only when the airport is included in the advertising with the carrier; in accordance with the Revenue Use Policy. 20
Frequently Asked Questions 4 Design a properly structured incentive program.
Unacceptable Incentives Include:
Q27: May I pay for leased property not owned by the airport on behalf of the air carrier? A27: No. This would represent a subsidy to the air carrier; subsidies to air carriers are prohibited by the Revenue Use Policy.
Q28: May I use airport revenue to make a direct payment to an air carrier to help defray start-up costs? A28: No. The Revenue Use Policy prohibits direct subsidies to air carriers.
Q29: May I provide an incentive that includes interest-free loans to a start-up air carrier? A29: No. This is a violation of the Revenue Use Policy.
Q30: May I tie the incentive to ticket price? A30: No. The airport sponsor may not dictate or influence the ticket price because such conduct may be considered unreasonable under Federal law and the grant assurances. Q31: May I provide a cash incentive to passengers who depart on the first leg of their journey from my airport? A31: No. The FAA considers cash payments to airport customers to be, in effect, a subsidy to air carriers in violation of the Revenue Use Policy.
Q32: May I promise to purchase a set number of tickets from the air carrier? A32: No. Howevei; the DOT offers a Small Community Air Service Development Program; fiinds granted under this program have different limitations on usage. See www.dotgov fbr more information.
21 Frequently Asked Questions 4 Design a properly structured incentive program.
Unacceptable Incentives Include (continued):
Q33: May I guarantee the number of seats that will be filled? A33: No. That could result in a subsidy paid to the air carrier in violation of the Revenue Use Policy.
Q34: May I guarantee gross passenger revenue? A34: No. That could result in a subsidy paid to the air carrier in violation of the Revenue Use Policy.
Q35: May I offer incremental discounts based on increased weight for a previously scheduled flight? A35: No. This does not qual0, as new service. It would also appear to be based on aircraft type since the carrier would be changing the aircraft to add seats on an existing scheduled flight. Incremental discounts based on weight could be discriminatory to those airlines that do not have different sizes of aircraft.
Your Incentive Program may NOT: • Guarantee gross passenger revenue
• Guarantee ticket sales
• Influence ticket prices
• Include direct payments to carriers from airport revenue Photo: FAA II Offer incremental discounts based on weight for existing service
III Offer incentives based on incremental weight or increased number of seats on existing flights.
22
Frequently Asked Questions Design a properly structured incentive program.
Unacceptable Incentives Include (continued):
Q36: We expect any lost revenue from waiving landing fees, etc., to be recovered through additional concession revenue. If this additional concession revenue is not sufficient to cover the cost of operating the incentive program, may I include the extra cost in the rate base? A36: No. The cost of providing incentives to one or more carriers cannot be included in the rate base for air carriers not participating in the incentive program without their express permission. The airport sponsor must have some other means for making up any shortfall resulting from the incentive program. It may not unilaterally adjust the rate base to cover extra costs from the incentive program.
Q37: We have a residual airport use agreement with signatory air carriers. The airport has no separate discretionary income not subject to the residual agreement. Under this scenario, may concession revenues cover the cost of the incentive program in the rate base without the approval of the signatory air carriers? A37: No. The cost of providing incentives to one or more carriers cannot affect the rate base for air carriers not participating in the incentive program without their express permission.
Q38: May I use funding from FAA grants or Passenger Facility Charge (PFC) collections to cover the cost of incentives? A38: No. This funding cannot he used to cover the cost of air carrier incentive programs.
Q39: May I use tax revenue that is not subject to the Revenue Use Policy to offer subsidy incentives? A39: Yes. We recognize that some airport authorities benefit from special tax districts, similar to school tax districts, in which local property owners pay a tax surcharge that is dedicated to support of the airport. The taxes are based on property location and value, and have no relation to use of the airport. The taxing authority may be either the sponsor or a non-sponsor Revenue that is derived from such a tax imposed for the benefit of the airport, but on property not owned by the airport, would not be considered airport revenue subject to the Revenue Use Policy. [Answer continued on page 24] 23 Frequently Asked Questions Design a properly structured incentive program.
Non Airport Revenue Sources:
[A39 Continued] For example, revenues from a property tax for the benefit of the airport could be used for air carrier subsidies, provided the subsidy is otherwise consistent with applicable grant assurances. Whenever the airport has revenue not Photo: FAA subject to the Revenue Use Policy that it intends to use for subsidies, the sponsor must ensure these funds are maintained in a separate account and are not comingled with other airport revenue.
Q40: May an independent group not affiliated with the airport or airport sponsor offer subsidy incentives to a single air carrier? A40: Yes, but the airport and airport sponsor cannot be a party to the agreement and must not be involved in negotiating, implementing, or monitoring the program in any manner Funds must not be funneled through the airport and record- For more information on keeping for the purpose of subsidy airport revenue, see FAA's payments may not be maintained by Policy and Procedures the airport or airport sponsor. (Note: Concerning the Use of Airport lithe independent group is unable to Revenue (64 Fed. Reg. 7696, support the program as initiated, the February 16, 1999) sponsor may not step in to run or pay for the program.) See also, EAS and SCASDP on page 18. Q41: The airport sponsor is a member of the Chamber of Commerce. The Chamber of Commerce plans to offer a subsidy incentive from its own revenue, which is not subject to the Revenue Use Policy. The airport sponsor will not vote on issues involving the subsidy incentive program. Is there a conflict of interest? A41: Yes. The FAA does not consider the airport sponsor to be removed from an incentive program simply because the sponsor refrains from voting. So long as the sponsor has influence, however limited, in the negotiations or planning of an air carrier incentive program, it is obligated by the grant assurances to offer the same incentives to all similarly situated air carriers. 24 Questions? Contact your Airports District Office
FAA Regions
New England Region
Nj, illt4f
ers
Aviation System Standards 0dahone City, OK (AVN) Aeronautical Centor
FAA Headquarters, Office of Airports 202.267.3085 Airport Compliance & Field Operations
Alaska Region Anchorage Airports Office 907.271.5438 AK
Northwest Mountain Region Seattle ADO 425.227.2650 ID, OR, WA Denver ADO 303.342.1261 CO, UT, WY Helena ADO 406.449.5271 MT
25 Questions? Contact your Airports District Office
Western Pacific Region Honolulu ADO 808.541.1232 HI, Guam, American Samoa, Marsh Islands Los Angeles ADO 310.725.3644 AZ, Southern CA San Francisco ADO 650.876.2778 NV, Northern CA
Great Lakes Region Bismark ADO 701.323.7380 ND, SD Chicago ADO 847.294.7336 IL, IN Detroit ADO 734.229.2900 MI, OH
Minneapolis ADO 612.713.4350 MN, WI
Central Region Kansas City Airports Office 816.329.2600 IA, KS, MO, NE
Southwest Region District Development Office 817.222.5630 AR, OK District Development Office 817.222.5640 LA, NM District Development Office 817.222.5650 TX
26 Questions? Contact your Airports District Office
New England Region Burlington Airports Office 781.238.7600 CT, MA, ME, NH, RI, VT
Eastern Region Harrisburg ADO 717.730.2830 DE, NJ, PA New York ADO 516.227.3800 NY Washington ADO 703.661.1357 DC, MD, VA Beckley ADO 304.252.6216 WV
Southern Region Atlanta ADO 404.305.7150 GA, NC, SC Jackson ADO 601.664.9900 AL, MS Memphis ADO 901.322.8180 KY, TN Orlando ADO 407.812.6331 FL, PR, USVI
Photo Credits: E4A credited photos (except cover and page 2 photo) provided courtesy of Miguel Vasconcelos
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FAA Office of Airports z, Airport Compliance and Field Operations (ACO-1) 800 Independence Avenue SW Washington, DC 20591
September 2010
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Board Memorandum
DATE: January 1, 2020 Memo # 20(12)-07 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Marily Mora, A.A.E., President/CEO Pf\a—LL&1 1-11-esez-- SUBJECT: Approval of the Addition of Seven New Permanent Staff Positions for the Reno- Tahoe Airport Authority Personnel Complement Made Up of Three Airport Rescue Fire Fighting Battalion Chiefs, Two Airport Communications Dispatchers, One Airport Communication Supervisor and One Airport Duty Manager for a total of $1,044,078
Staff econiniendation
Staff recommends that the Board approve the addition of seven new permanent staff positions for the Reno- Tahoe Airport Authority (RTAA) personnel complement. Pur ose
The purpose of this action is to obtain Board approval of the following seven new permanent staff positions for the RTAA personnel complement: 3 Airport Rescue Fire Fighting (ARFF) Battalion Chiefs, 2 Airport Communications Dispatchers and reclassification of 5 Airport Communications Specialists to Airport Communications Dispatcher. 1 Airport Communications Management-level Supervisor position, and 1 Airport Duty Manager
This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #4 — Safety and Security as identified in the Reno-Tahoe Airport Authority Fiscal Year (FY) 2019-2023 Strategic Plan. Back round
RTAA Management began a departmental analysis of public safety needs beginning with the Fire Department via the creation of a Working Group to collaborate on solutions specific to issues that were brought to light by ARFF in April of 2019. The intent, specific to this Working Group, has been to work hand-in-hand to establish a dialogue and discuss improvements to the RTAA's ability to provide emergency response for the Fire Department. The staff recommendations contained herein have been the culmination of those efforts in concert with the advisement of Administrative Fire Chief Mike Brown who was brought on staff through a contract with R&R Partners to assist the RTAA with the review of ARFF protocols and ultimately provide recommendations for improvement. An assessment of Public Safety and Emergency Management needs continues, but now with the addition of the Police and Security Departments being added to the discussion along with all disciplines including Facilities and Operations.
In addition to Working Group discussions with ARFF, Management also reached out to Airport Communications and Airfield Operations personnel and their Managers in order to identify concerns in those Departments. Their ability to effectively respond to airport incidents and irregular operations as well as their Public Safety Staff Additions #19(12)-07 January 9, 2020 Board Meeting Page 2 of 3
ability to perform assigned duties now and into the future as we see increased passenger counts and aircraft activity has been considered.
Discussion
Fire Department: After reviewing internal procedures, reviewing the recommendations of Mike Brown and looking at operations at similar Index C Airports, staff is recommending changes to our staffing structure in the Fire Department.
1) Add three new management positions of Battalion Chief.
The addition of three BCs will provide a 24/7/365 dedicated incident command presence for airport emergencies, an increased level of safety during incident response and a higher level of training, prevention and operational readiness.
Airport Communications: After reviewing internal procedures, reviewing the recommendations of Mike Brown and looking at operations at similar Index C Airports, staff is recommending changes to our staffing structure in Airconn.
1) Provide a minimum staffing level of 2 Communications staff per shift not including supervision. 2) Create a Communications Dispatcher position (seven Dispatchers); a new higher-level position above Communications Specialist (six Specialists) that will require specialized training in emergency dispatch procedures. A minimum of one Dispatcher will be staffed on each shift every day of the week. 3) Add one additional Management-level position in Airport Communications to provide specific supervision for the higher classification of Communications Dispatcher as well as training and development for that staff.
This change to the staffing compliment will enhance the Airport's ability to provide communications support to the public and other functional groups within the airport environment while providing a new level of dedicated public safety dispatchers to specifically support situational dispatch of the Police and Fire departments.
Airside Operations: After internal discussions with staff about procedures and staffing concerns, staff is recommending changes to the staffing in the Airside Operations Department.
1) Addition of one Airport Duty Manager (ADM) which would increase the number of personnel to eight total. The addition of one ADM provides increased double coverage during the graveyard shift, increased support for airside operational needs, during emergencies, snow removal and construction activities.
As noted above, RTAA Management is still evaluating other recommendations for improvement in the Public Safety area which may be brought forward at a future date.
Fiscal Impact
There will be a fiscal impact associated with the approval of these positons. As a mid-year request, these additional personnel will have minimal impact on our current budget and no mid-year budget augmentation is being requested. As we look at our next fiscal year budget, the annualized cost with all pay, benefits, and equipment are estimated at the following. Public Safety Staff Additions #19(12)-07 January 9, 2020 Board Meeting Page 3 of 3
Three Battalion Chiefs: $497,299
2 Aircom Dispatchers: $205,305 (Includes promotion of 5 Aircom Specialists)
1 Aircom Management-level position: $130,737
1 Airport Duty Manager $130,737
1 BC Vehicle and associated equipment & gear $80,000 (one time cost)
Total $1,044,078
Committee Coordination
This item is scheduled to be presented at the January 7, 2020 Finance and Business Development Committee Meeting. Recommended Motion
It is hereby recommended that the Board adopt the following motion:
"It is hereby moved that the Board approve the addition of seven new permanent staff positions for the Reno-Tahoe Airport Authority personnel complement." weme9veyou Reno-Tahoe Airport Authority Board Memorandum
DATE: January 1, 2020 Memo # 20(01)-08 TO: Chairwoman & Board Members For: January 9, 2020 Board Meeting FROM: Chair Chaplini-Stf—,7".- SUBJECT: Direction Staff o develop an Emergency Management Team to prepare proposed Emergency Management Plan and Approval of Reno-Tahoe Airport Authority Chair's Appointments to the Public Safety Committee, which committee shall convene only upon receipt of such Emergency Management Plan
Staff Reconirne dation The Chair recommends that the Board direct Staff to develop an Emergency Management Team to prepare a proposed Emergency Management Plan and that the Board approve the Reno-Tahoe Airport Authority (RTAA) Chair's appointments to the Public Safety Committee, which committee shall convene only upon receipt of a proposed Emergency Management Plan. Background
Bylaw 9310 provides that in formulating Policies, Regulations and Actions, the Board shall adopt general principles which provide authority and responsibility for the President/Chief Executive Officer and administrative staff to take action. Bylaw 9140 provides that the Chairperson shall, with approval of the Board, establish Permanent Board Committees consisting of at least two members of the Board, but less than the full membership of the Board. The Chair is an ex-officio member of any committee of which he/she is not a regular member. Discussion
At the December meeting of the Board of Trustees, it was suggested that a Public Safety Committee be established. The Chair asked all Board members to let her know if they had an interest in serving on the Public Safety Committee. After considering the responses and mindful of the role of the Board as set forth in the Enabling Legislation and the Bylaws of the RTAA, the Chair believes that prior to the convening of such a Public Safety Committee, the Staff should be directed to develop an Emergency Management Team to prepare a proposed Emergency Management Plan and that the Public Safety Committee should convene when it receives such proposed Emergency Management Plan. Such Emergency Management Team should cut across all disciplines, including but not limited to Police, Fire, Facilities, and Operations.
Pending establishment of such a team and the development of a proposed Emergency Management Plan, the Chair, taking into account each Trustee's background and experience, makes the following appointments to the Public Safety Committee and seeks the Board's formal approval:
AMORGAN/15411073.1/031669.0002 Committee Appointments # 20(01)-08 January 9, 2020 Board Meeting Page 2 of 2
Public Safety Committee Shaun Carey, Chair Jessica Sferrazza, Committee member Lisa Gianoli, Committee member
The Chair further asks that the Board stay the convening of the Public Safety Committee until it receives a proposed Emergency Management Plan from the Emergency Management Team.
Fiscal Impact
Pending a recommendation of a proposed Emergency Management Plan, there is no fiscal impact of the requested action.
Committee Coordination
This item was not presented to a Committee for recommendation and is for full Board consideration.
Recommended Motion It is hereby recommended that the Board adopt the following motion:
"It is hereby moved that the Board direct Staff to develop an Emergency Management Team to prepare a proposed Emergency Management Plan and Approve Reno-Tahoe Airport Authority Chair's Appointments to the Public Safety Committee, which committee shall convene only upon receipt of such Emergency Management Plan."
CC/am
AMORGAN/15411073.1/031669.0002
President / CEO’s Report – January 2020
OPERATIONS / FACILITIES & MAINTENANCE
Operations
Airport Security
Airport Security successfully passed a 100% TSA badge audit in early December.
Airport Communications (Aircomm)
Construction of the new Airport Communications Center, the Emergency Operations Center space and new management offices are nearing completion. The buildout entire area is expected to be completed in late January 2020.
Airport Police
Officer Brandon Randall was certified in December with his new K9 partner, Gorgo. Including Officer Pete Dunbar and his K9 Orcan, the RTAA now has two certified K9 teams. Officer Mike Fretz will round out the third and final team once he completes his training at Lackland AFB in San Antonio, Texas. Officer Fretz is scheduled to attend the 12-week Training Academy for K9 beginning in January 2020.
The police department is accredited by the Commission on Accreditation for Law Enforcement Agencies (CALEA) and recently passed our annual assessment. Every four years an on-site assessment is conducted by CALEA assessors and 2019 was our scheduled on-site year and we received a positive report. CALEA assessors review our standard protocols off-line annually to ensure compliance. With this successful assessment, the accreditation team will travel to Orlando, FL in March to accept the re-accreditation award, which will be our third since being accredited in 2013.
Airport Fire
In January, Chief Tongate will be attending “Drafting & Implementing Effective Fire Department Policies & Procedures” course. The program provides in-depth knowledge about researching, drafting and implementing sound and effective fire department policies and procedures, identifying which policies our organization needs, managing resistance to change and utilizing policies as a tool for change management, strategies for developing, drafting and implementing policies, and liability issues associated with policies. The course also distinguishes between policies, procedures, guidelines, SOPs and SOGs.
Airside Operations
The runway friction tester has been repaired and is back in service. The equipment was off-line for a short period this fall while it was being repaired by the manufacturer. The truck mounted friction testing device is used by Operations Staff to evaluate braking action on the airport runways. The friction results are then shared with the Control Tower, Airlines and pilots.
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Landside Operations
Staff made preparations for overflow parking that was expected for the Christmas and New Year’s holiday season. Passenger counts are expected to increase in 2019 compared to what they were in 2018. A plan that was similar to the Thanksgiving parking plan was implemented.
Facilities & Maintenance
The Reno-Tahoe Airport Authority received a Power Shift energy rebate check in December from NV Energy in the amount of $11,464.30. This was for a 2018/19 Capital Improvement Project that included installing a variable frequency drive (VFD) to the 600-ton chiller and upgrading the controls for automated staging and improved system performance. This upgrade project realized a net annual savings of 230,722 kilowatt hours (kWh)savings, equating to a $25,380 reduction in electrical utility expense. The project cost was $80,000. With the annual savings and the rebate, the Return on Investment (ROI) is approximately 2.7 years. This is the twenty-third Power Shift rebate project for the Airport Authority since 2011, with two more energy savings projects underway in the current 2019/20 fiscal year.
A current 2019/20 Capital Improvement Project to install a shop crane in the Airfield Maintenance Weld Shop was completed in December by the Airfield staff. This project will greatly improve the safety of our employees when they are performing heavy equipment and component repairs.
The 2019/20 LED Upgrade project for the public landside areas including the Blue Lot, Entry Loop Road, North Loop Road, Long Term Parking Lot and the Quick Turn-Around Facility Lot are approximately 80% complete. This project qualifies for the NV Energy Power Shift rebate program and will save approximately $35,000 per year in electrical utility costs and will have an estimated NV Energy rebate of $15,100. The ROI on this project is 3.12 years, and with the anticipated rebate, 2.66 years.
The Building Maintenance department installed four (4) new Emergency Eye Wash stations at various strategic airside locations around the B and C concourses. This brings the number of airside Emergency Eye Wash Stations to a total of six (6).
AIR SERVICE / MARKETING & PUBLIC AFFAIRS
Air Service Development
Important Updates
• On January 7, 2020, Alaska Airlines suspended the non-stop flights between Reno and Boise. • On January 8, 2020, Alaska Airlines reduced the number of non-stop flights between Reno and San Jose from twice a day to once a day. • Starting February 14, 2020, Delta Air Lines will upgrade the non-stop flights between Reno and Atlanta, from seasonal to a year-round service. Daily flights begin on June 4, 2020. • Starting May 13, 2020, Allegiant Air will increase non-stop flights between Reno and Las Vegas from once a day to twice a day.
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Recent and Upcoming Schedule Changes
Alaska Airlines • Alaska Airlines offers non-stop flights between RNO and Seattle four times a day. The airline will offer this service five times a day from January 7, 2020, until May 12, 2020.
American Airlines • On October 20, 2019, American Airlines temporarily suspended non-stop seasonal flights between RNO and Chicago O’Hare. This flight returns on May 7, 2020.
Delta Air Lines • Delta Air Lines’ non-stop flight between RNO and Atlanta will operate on the following schedule: o Daily from December 21, 2019, until January 5, 2020. o Four times a week from February 14, 2020, until April 29, 2020 (Monday, Wednesday, Friday, Saturday). o Five times a week from May 1, 2020, until May 31, 2020 (Monday, Thursday, Friday, Saturday, Sunday). o Daily starting June 4, 2020.
Frontier Airlines • On November 14, 2019, Frontier Airlines started non-stop flights between RNO and Las Vegas four times a week (Monday, Thursday, Friday, Sunday).
JetBlue Airways • JetBlue Airways’ non-stop flights between RNO and New York City will operate on the following schedule: o Four times a week from January 9, 2020, until February 10, 2020. o Five times a week starting February 13, 2020.
Southwest Airlines • Southwest Airlines’ non-stop seasonal flight between RNO and Dallas Love Field was temporarily suspended on August 4, 2019. This flight will return as a Saturday/Sunday service on March 7, 2020. • Southwest Airlines’ non-stop flights between RNO and San Jose will operate on the following schedule: o Two to three flights a day from January 6, 2020, until February 7, 2020. o Once to three flights a day starting February 8, 2020. • Southwest Airlines temporarily suspended non-stop seasonal flights between RNO and Chicago Midway on October 27, 2019. This flight is expected to return in summer 2020.
United Airlines • United Airlines will reduce the number of non-stop flights between RNO and Los Angeles from three times a day to twice a day from October 26, 2019, until February 12, 2020. • United Airlines temporarily suspended daily non-stop seasonal flights between RNO and Chicago O’Hare on October 26, 2019. This flight returned on December 19, 2019.
Volaris • Volaris offers non-stop flights between RNO and Guadalajara, Mexico, four days a week (Monday, Wednesday, Thursday and Friday). This flight operated five days a week (Monday through Friday) from December 17, 2019, until January 7, 2020.
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Total Passengers
Reno-Tahoe International Airport (RNO) served 318,022 passengers in November 2019, an increase of 0.7% versus the same period last year. The airport experienced positive passenger growth for the 54th consecutive month with respect to the year over year monthly increases. During the first 11 months of 2019, RNO served 4,068,776 passengers, an increase of 5.2% when compared to the same period last year.
Total Passengers November-19 Passengers % Passengers % 2017 2018 Diff. 2019 Diff. JAN 284,553 312,125 9.7% 335,095 7.4% FEB 286,322 296,726 3.6% 306,800 3.4% MAR 353,651 356,112 0.7% 383,215 7.6% 1st Quarter 924,526 964,963 4.4% 1,025,110 6.2% APR 302,078 325,428 7.7% 337,062 3.6% MAY 317,935 345,740 8.7% 354,311 2.5% JUN 367,600 389,103 5.8% 397,211 2.1% 2nd Quarter 987,613 1,060,271 7.4% 1,088,584 2.7% JUL 400,754 414,529 3.4% 432,188 4.3% AUG 393,478 402,794 2.4% 431,640 7.2% SEP 345,280 362,831 5.1% 392,353 8.1% 3rd Quarter 1,139,512 1,180,154 3.6% 1,256,181 6.4% OCT 336,433 347,591 3.3% 380,879 9.6% NOV 300,308 315,833 5.2% 318,022 0.7% DEC 326,989 341,283 4.4% 4th Quarter 963,730 1,004,707 4.3% TOTAL 4,015,381 4,210,095 4.8% YTD Total 3,868,812 4,068,776 5.2%
Total Cargo
RNO handled 11,428,318 pounds of air cargo in November 2019, a decrease of 9.6% when compared to November 2018. During the first 11 months of 2019, RNO handled 131,629,370 pounds of air cargo, a decrease of 2.3% when compared to the same period last year.
Total Cargo November-19 2017 2018 % 2019 % Cargo in Pounds Diff. Pounds Metric Tons Diff.
JAN 12,749,916 11,795,775 -7.5% 11,940,830 5,415 1.2% FEB 12,023,060 11,417,480 -5.0% 11,559,065 5,242 1.2% MAR 13,595,007 13,053,097 -4.0% 11,770,662 5,338 -9.8% 1st Quarter 38,367,983 36,266,352 -5.5% 35,270,557 15,996 -2.7% APR 11,974,440 10,826,085 -9.6% 11,208,216 5,083 3.5% MAY 12,671,643 12,245,815 -3.4% 12,273,193 5,566 0.2% JUN 12,396,234 12,225,509 -1.4% 11,988,693 5,437 -1.9% 2nd Quarter 37,042,317 35,297,409 -4.7% 35,470,102 16,086 0.5% JUL 11,454,156 12,233,364 6.8% 12,537,938 5,686 2.5% AUG 13,472,975 13,689,777 1.6% 12,909,571 5,855 -5.7% SEP 12,436,806 12,052,727 -3.1% 11,350,614 5,148 -5.8% 3rd Quarter 37,363,937 37,975,868 1.6% 36,798,123 16,688 -3.1% OCT 12,169,329 12,548,739 3.1% 12,662,270 5,743 0.9% NOV 12,446,633 12,645,887 1.6% 11,428,318 5,183 -9.6% DEC 14,882,745 14,128,422 -5.1% 4th Quarter 39,498,707 39,323,048 -0.4% TOTAL 152,272,944 148,862,677 -2.2% YTD Total 134,734,255 131,629,370 59,696 -2.3%
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Marketing & Public Affairs
Marketing Marketing and Air Service Development coordinated a day-long video shoot on December 11, 2019 to prepare for the launch of the We Move You Air Service Marketing campaign. A second shoot is scheduled for early January in order to complete the six individual video ads.
A second round of “Getaway Sweepstakes” is scheduled to begin January 6 where consumers can enter to win round-trip tickets and hotel stays. RTIA’s first Getaway will be San Jose, CA courtesy of Alaska Airlines. To not compete with the “Getaway Sweepstakes” ads, the We Move You campaign will begin at the end of the SJC contest and run periodically throughout the remainder of the fiscal year.
Staff attended Adobe MAX in Los Angeles, CA from November 4-6. MAX is the premier conference for Adobe software users, with over 15,000 attendees and another 60,000 who stream keynotes and individual sessions from around the world. 2019’s MAX motto was “Creativity for All” where focus was on keeping creative tools in schools across the United States. Staff attended sessions on color concepts, font history and selection, creating successful marketing campaigns, finding a creative voice, and Adobe Illustrator tips.
Customer Service The Kindness Takes Flight team shared the holiday spirit on December 20th for Go Caroling Day. This included joining voices with the Washoe Carolers to sing popular Christmas songs throughout the airport. Team members who opted not to sing but still wanted to participate passed out mini candy canes and engaged in conversation with passengers.
With the great success of RNO’s Gratitude Wall at Thanksgiving, the airport again hosted the New Year’s Resolution Wall just beyond security where passengers and employees shared their resolutions for 2020. Posts on this year’s Gratitude Wall broke a record for number of messages.
During the holiday rush, Paws 4 Passengers therapy dogs brought smiles and calm to airport guests, and the Virginia City Docents, dressed in clothing from the Victorian era, greeted and assisted travelers on peak travel days.
Media and Public Outreach Staff is preparing to welcome Safari Club International with over 20,000 attendees expected to travel through RNO the second week of February. The Pole Vault Summit will also be making its way through RNO again January 15-19, 2020.
Staff in conjunction with the Caring Campaign and the Warehouse team hosted its annual canned food drive to benefit the RTAA’s Partner in Education, Swope Middle School. Non-perishable food and gift cards were collected at the airport and then sorted and distributed by Swope to support their families in need of extra support during the Christmas season.
Staff also worked with Swope to display decorative gingerbread houses in the Connector Concourse made by the students. Passengers voted for their favorite house by donating money that’s then given to a charity of the school’s choosing.
Coordinated by Marketing annually, the airport was decorated for Christmas with wreaths, trees and Santa. New this year was outdoor lights that were put up along the airport loop road.
Page 5
The airport greeted passengers and visitors with holiday music in the terminal throughout the month of December. Caroler groups included Reno Philharmonic’s Washoe Carolers, High Desert Harmony, 15-year- old cellist Teagan Cerink, Swope Middle School’s big band, and pianist Squeek Steele.
In keeping with annual tradition, PR staff delivered lunch to the local print, television and radio stations throughout the area. It’s the PR team’s way of wishing the media Merry Christmas and thanking them for another year of fair and positive coverage.
Staff also conducted numerous media interviews regarding holiday travel tips.
AIRPORT ECONOMIC DEVELOPMENT
RNO Concessions and Terminal Tenants
RNO Consolidated Rental Car Facility Phase I Feasibility Study A status update on the Consolidated Rent-A-Car Facility (ConRAC) Interim Phase I Feasibility Study was presented to the Board of Trustees at its June 13, 2019 Master Plan Project Delivery Workshop and August 8, 2019 Board meeting. The landside Master Plan goals and a conceptual site plan focusing on customer service and meeting future passenger demand were explored. A preliminary cost estimate and budget for the project was also presented. The final Phase I Feasibility Study Report was submitted August 19, 2019. A Board workshop was held on September 12, 2019 at which time RTAA staff and Conrac Solutions received feedback from the Trustees on the Phase I report. A proposed plan on how to proceed was presented at the Planning and Construction and Finance Committee meetings on October 8, 2019 and at the October 10th Board meeting. The Board authorized additional CFC funds for ConRAC Solutions to conduct further analysis and Staff to retain consultants to validate the Phase 1 Feasibility Study Report findings on rental car transaction days, total project cost and schedule, traffic, site and circulation and conduct a public safety assessment of design. The October Board authorized scope and funds are referred to as Phase 1.1. Phase 1.1 work is in nearing completion, including a revised design to address RTAA concerns, and will be discussed at a future Board Workshop.
RNO General Aviation
RNO General Aviation Request for Proposals At the December 12, 2019 RTAA Board Meeting, the Board approved the Stellar Aviation of Reno-Tahoe, LLC (Stellar) development proposal and the use of interim FBO and Fuel Farm facilities thus concluding the RNO General Aviation Request for Proposals. Staff will work with Stellar as they occupy the interim facilities and will collaborate and assist Stellar in preparing for the FAA and environmental process submissions.
Dassault Aircraft Services Corporation Dassault continues to move forward with its improvements to their facility at 365 South Rock Boulevard.
The first improvement is a 11,300 sf expansion of their facility. Staff has been working with Dassault and its General Contractor to provide assistance and guidance as they progress through the FAA and environmental processes.
The second improvement is to the street side public parking area. Dassault will expand the public parking to accommodate the facility expansion.
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RNO Land Development
Aloft Hotel at Gateway Center Construction on the Aloft Hotel continues to move forward on schedule with an anticipated hotel construction completion date of February 2020 and a tentative Grand Opening event in mid to late April 2020. The construction is approximately 85% complete. Staff has scheduled an introductory meeting with JMA’s recently hired on-site General Manager and Director of Sales for late January.
Reno-Stead Airport
4620 Alpha Avenue - Former Nevada Army National Guard Stead Barracks Based on the findings of the RTAA commissioned appraisal and assessments and per Board direction, Staff has changed its approach to a Request for Interest (RFI) rather than a Request for Proposals (RFP). An RFI will help to identify demand and provide Staff with better direction. Staff is drafting the RFI and anticipates its release in February 2020. Interested parties have been advised of the change in direction.
ADMINISTRATION
Human Resources
HR staff presented six health insurance Open Enrollment meetings to employees throughout the month of November. These presentations included medical plan enrollment and flexible spending account options. Open Enrollment concluded on December 4, 2019.
HR Staff coordinated a “Board Memos” class (part III of III). This is a three-week curriculum that instructs employees on the “what and how” of various elements within a Board Memo, including the subject and “above the line” items; staff recommendation, purpose, and recommended motion; and how to successfully communicate in this specific format.
A “Public Safety Tour” was offered for staff, answering questions such as “what does it mean to work at an airport?” and “what is unique about our environment?” Taught quarterly by Operations staff, this class provided participants with a broader understanding of public safety, landside operations, security, and customer service.
As part of our career development series and in support of our succession planning efforts, HR Staff facilitated “So You Want a Promotion?” This class informs participants how to get ready NOW for a promotion down the road.
HR staff presented an intermediate computer class: Word Forms and Tables. In two sessions, participants learn how to create tables and turn them into electronically fillable forms. Optional “homework” assignments were given for those who wanted to solidify skills beyond the classroom.
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ENGINEERING / PLANNING / ENVIRONMENTAL
Stormwater Pollution and Spill Prevention Training
In collaboration with Human Resources, Planning staff provided training sessions on “Storm Water Pollution Prevention (SWPP),” to comply with the requirements of the National Pollution Discharge Elimination System (NPDES) to minimize water pollution from airport industrial and construction activities, as well as “Spill Prevention Control and Countermeasures (SPCC), which is a required plan to prevent the release of petroleum products to the environment. Training was offered to all maintenance staff and Duty Managers, this class concerns regulatory compliance as well as environmental responsibility. In December, total of (5) SWPPP/SPCC training sessions were provided to staff.
LEGISLATIVE UPDATE
Federal Update
December was dominated by the year-end rush to finish all must-pass legislation before the Congress adjourns for the remainder of 2019. Among those bills getting the most attention include a funding bill to keep the government open through FY20, the National Defense Authorization Act (NDAA), the US-Canada-Mexico Free Trade Agreement, tax extenders legislation, and, of course, impeachment. There were some issues important to the RTAA that were included in those bills, however, so we’ve outlined those for you below.
Per- and Polyfluoroalkyl Substances (PFAS)
In a major win for the RTAA, PFAS will not be listed as a hazardous substance under federal law. The House had included a provision in their version of the NDAA that would have classified the fire-fighting chemical as a hazardous substance under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as Superfund. The Senate version of the legislation contained no such provision.
The discussion on how to regulate PFAS continued this month at the House level. House Energy and Commerce Committee Chairman Frank Pallone (D, NJ-06) announced that Rep Debbie Dingell’s (D, MI-12) “PFAS Action Act of 2019” will be receiving a vote in the House in the first or second week of January. The legislation would require the Environmental Protection Agency to designate all perfluoroalkyl and polyfluoroalkyl substances as hazardous substances within one year of its enactment.
Chairman Pallone has further amended the legislation by adding provisions that would require comprehensive toxicity testing be conducted on all chemical substances that are perfluoroalkyl or polyfluoroalkyl. It would also mandate that the EPA Administrator promulgate a national primary drinking water regulation for perfluoroalkyl or polyfluoroalkyl substances within two years of enactment. It would also direct the administrator to establish a PFAS infrastructure grant program.
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Porter Group will monitor this legislation closely and report changes and vote records to RTAA, as well as strategize with RTAA on how to educate legislators on the usage of these chemicals as they relate to airport fire suppression.
Effects of EAS Changes
The 2018 FAA reauthorization law required an examination of how statutory changes to the Essential Air Service (EAS) program affected the program and the challenges faced by the communities it serves. In a recent report, the Government Accountability Office, Congress’ watchdog agency, found there’s been increasingly limited eligibility for the program since fiscal 2010, though the Transportation Department has also granted most of the waivers, in cases when they’ve been offered. EAS expenditures increased from $161 million in fiscal year 2010 to $277 million in fiscal year 2018.
Facial Recognition for International Travel
The Trump Administration reversed its plan to mandate that U.S. citizens traveling internationally undergo photographic facial scans to verify their identities. While the government had originally published the proposal in 2018, US Customs and Border Protection decided to rescind the effort after speaking to lawmakers and privacy groups about their concerns.
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Quarterly Report – January 2020
OPERATIONS / FACILITIES & MAINTENANCE
Operations
September – September – Department Event November 2019 November2018 Joint Actions Aircraft Alerts: ARFF, Ops, Police, Aircom 9 10 Medicals: ARFF, Ops, Police, Aircom 73 52 Operations Inspections 149 188 Wildlife Incidents 8 20 Police TSA Checkpoint Incidents 15 9 Case Numbers Requested 114 112 Security Alarm Responses 470 738 Inspections: Vehicle, Delivery, Employee 5146 3,407 ARFF Inspections: Fuelers/Facilities 23/53 18/132 Aircom CAD Events 13,707 12,518 NCIC Checks 2,826 1,678 PA/Everbridge Announcements 2,634/637 2,217/534 Landside Public Parking – Total Revenue $ 3,239,285.00 $ 2,114,295.00 Public Parking – Total Transactions 128,390.00 86,061.00 Public Parking – Average $ Per Transaction $ 75.61 $ 49.06 Shuttle & Bus Trips Through GT 31,443 37,998 Transportation Network Company Trips 46,928 38,301 Taxi Trips 17,117 17,593
Facilities & Maintenance
September – December 2019 Plastic Bottles Diverted From Landfill Due To Water Bottle Filling 40,824 Stations Work Orders Submitted 2,431 Word Orders Completed 2,380
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AIR SERVICE / MARKETING & PUBLIC AFFAIRS
Marketing & Public Affairs
Total Followers August 2019 Total Followers December 2019 Percent Increase Facebook 15,672 16,003 2% Twitter 8,549 8,733 2% Instagram 1,848 2,044 10%
AIRPORT ECONOMIC DEVELOPMENT
Lease Information
Demand remains high for commercial space in the Airport submarket, with average rents continuing to trend upward in the office and light industrial sectors. Despite a cautionary forecast coming from local real estate firms, the Authority experienced strong demand for all commercial spaces.
Overall occupancy in the Outside Properties portfolio increased one percentage point to 98%. Staff is in negotiation with interested parties who wish to lease the remaining vacant commercial space.
The following table is a summary of leasing activity in the month of September – December 2019.
Original or Length of Contract Company Address Use Amendment Lease Value 2nd Amendment Keen 2900 Vassar Street 2,200 square 12 Months $11,494.44 Concepts CC-22 & 23 feet – Granit Fabrication Shop 4th Amendment NAI Alliance 2890 Vassar Street 1,000 square 12 Months $4,400.07 BB-13 feet – General Storage & Workshop 4th Amendment Rumbaugh 1280 Terminal Way 340 square feet 12 Months $3,505.08 Enterprises #14 – Office 1st Amendment Alepholistic 1280 Terminal Way 302 square feet 12 Months $3,497.88 #8 – Holistic Center 1st Amendment Sierra Single 2900 Vassar CC-10 1,100 square 12 Months $7,010.40 Ply feet – General Office and Storage 2nd Amendment A Natural 1280 Terminal Way 631 square feet 12 Months $7,513.32 Sparkle #4 & 11 – General Office 2nd Amendment Integrative 1280 Terminal Way 883 square feet 12 Months $8,298.35 Provider #2, 3, 12 & 13 – General Office Network
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2nd Amendment Clean 2890 Vassar Street 1,000 square 12 Months $5,480.88 Solutions LLC AA-14 feet – General Office and Storage 2nd Amendment Econo 2890 Vassar Street 1,000 square 12 Months $6,385.92 Backhoe Inc. BB-15 feet – Storage 2nd Amendment Still Rollin 2890 Vassar Street 1,000 square 12 Months $6,136.32 LLC BB-17 feet – Food Truck Storage 1st Amendment Mikes Family 1280 Terminal Way 281 square feet 12 Months $3,261.12 Bail Bonds #26 – General Office 4th Amendment A-Rooter- 2890 Vassar Street 1,000 square 12 Months $6,050.76 Man AA-13 feet – Plumbing, Equipment Sewer & Storage Drain Cleaning 3rd Amendment Joshua 2900 Vassar Street 1,100 square 12 Months $6,589.80 Talayka CC-09 feet – General Office and Equipment Storage
ADMINISTRATION
Technology & Information Systems
September – December 2019 Number of Work Orders Resolved 616
Human Resources
September – December 2019 Number of New Hires 13 Number of Promotions / Transfers 4 Number of Classes Conducted 6
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ENGINEERING / PLANNING / ENVIRONMENTAL
Aircraft Rescue and Firefighting Facility (ARFF) Solar System
The 135-kilowatt solar system installed at the Airport Authority’s Aircraft Rescue and Firefighting Facility (ARFF) has been operational since March 2011. Solar power generation results are provided below. Banked credits have been used during those months when not enough power is generated to cover the monthly use. As indicated in the table below, approximately $1,099 in electrical costs have been saved as a result of the solar system during FY19-20.
On August 16, 2019, the Airport Rescue and Firefighting Facility (ARFF) Solar System experienced a system outrage (inverter failure). The system remains offline while staff woks with an electrical consultant on repairs. It is currently unknown when the system will be fully operational again.
September – Power Generation FY 18-19 FY 19-20 November 2019 Energy Offset from Monthly Bill $6,827 252.20 $1,099 Energy Credits Banked $9 $0 $0 Banked Credits Applied ($9) $0 $0 Total Earned $6,835 $252.20 $1,099 Banked Credits Remaining $0 $0 $0
Recycling at Reno-Tahoe International Airport
Airport Authority staff successfully collected approximately 40.54 tons of recyclable material during FY19- 20. These recyclables equate to a 9.38 percent diversion rate of the airport’s total waste volume. The annual recycling objective is 10 percent.
The annual recycling objective is met by a staff-initiated program to collect commingled (single-stream) recyclables at select terminal and concourse locations. The single-stream collection includes all plastics, aluminum cans, glass, mixed paper, and cardboard. This recycling initiative helps improve the Airport Authority’s recycling and waste diversion efforts, assists the airlines with single-stream recycling programs, and reduces hauling and recycling costs. Recyclables, including paper, cardboard, and batteries, continue to be collected separately.
September – Material FY 18-19 (Tons) November 2019 FY 19-20 (Tons) (Tons) Cardboard 83.12 20.22 26.07 Mixed Paper 0 0 0 Single-Stream Recyclables 24.87 9.72 12.94 (Paper, Glass, Cans, Paper, etc.) Batteries 2.77 0.40 1.53 Total 110.76 30.34 40.54
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