BOARD OF TRUSTEES PRESIDENT/CEO Andy Wirth, Chair Marily M. Mora, A.A.E. Rick Murdock, Vice Chair EXECUTIVE VICE-PRESIDENT/COO Nat Carasali, Secretary Dean E. Schultz, A.A.E. Jerry Hall, Treasurer GENERAL COUNSEL Bill Eck Ann Morgan, Fennemore Craig Lisa Gianoli CLERK OF THE BOARD Adam Mayberry Claire Johnson Jenifer Rose Jessica Sferrazza
RENO-TAHOE AIRPORT AUTHORITY MEETING OF THE BOARD OF TRUSTEES June 9, 2016 9:00 a.m. Board Room, Administrative Offices Second Floor, Main Terminal Building Reno-Tahoe International Airport Reno, Nevada
Items V, VI, VIII, IX, and XII 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 Chairman.
I. PLEDGE OF ALLEGIANCE
II. ROLL CALL
III. PRESENTATIONS AND AWARDS A. Employee, Tenant and Special Recognition B. Introduction of New, Promoted and Retired Employees C. Tenant Communication
IV. PUBLIC COMMENT, if any – Limited to three minutes per person
V. APPROVAL OF MINUTES – May 19, 2016 Board Meeting Minutes
VI. APPROVAL OF AGENDA
VII. COMMITTEE AND LIAISON REPORTS A. Finance and Business Development Committee B. Planning and Construction Committee C. Airport Noise Advisory Panel (ANAP) D. Community Outreach Committee (COC) E. Stead Liaison F. RSCVA Board Board of Trustees Meeting Agenda June 9, 2016 Page 2 of 3
G. Air Service Liaison H. The Chamber Reno Sparks Northern Nevada I. Reno-Tahoe International Airport Users Committee J. Compensation Committee K. State Legislative Priorities Committee
VIII. CONSENT ITEMS FOR BOARD ACTION
A. #16(06)-19 Authorization of Public Comment Period for an Amendment to the Adopted Reno-Tahoe International Airport Land Use Plan
B. #16(06)-20 Authorization for the President/CEO to Amend the 30-Year Land Lease with Longley Corners LLC by Extending the Rent Deferral Period for an Additional Twelve Months (September 17, 2016 – September 16, 2017) on Approximately 2.78 Acres of Land Owned by the Reno-Tahoe Airport Authority, Located East of Luther Lane Between East Peckham Lane and South McCarran Boulevard
C. #16(06)-21 Authorization for the President/CEO to Negotiate Final Terms and Execute Supplemental Lease Agreement #00007 to the Transportation Security Administration Lease No. HSTS01-09-L-RES504 to Adjust the Rents Effective July 1, 2016
IX. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION
A. #16(06)-22 Review and Possible Action on Recommended Performance Criteria and Goals for Reno-Tahoe Airport Authority President/CEO for FY 2016-2017
B. #16(06)-23 Approval of the Fiscal Year 2016-2017 Reno-Tahoe Airport Authority Board of Trustees Meeting Calendar
X. ITEMS FOR BOARD INFORMATION AND DISCUSSION
A. Presentations 1. Pathways to Aviation
B. Upcoming Meetings/RTAA Event Schedule 1. Board/Committee Meetings a. June 16, 2016 5:30 pm Community Outreach Committee Meeting b. June 20, 2016 3:30 pm Airport Noise Advisory Panel Meeting c. June 28, 2016 10:00 am State Legislative Priorities Committee Meeting d. July 12, 2016 9:00 am Finance & Business Development Committee Meeting e. July 12, 2016 10:00 am Planning & Construction Committee Meeting f. July 14, 2016 9:00 am Board of Trustees Meeting g. August 8, 2016 4:30 pm RTIA Users Committee Meeting h. August 9, 2016 9:00 am Finance & Business Development Committee Meeting i. August 9, 2016 10:00 am Planning & Construction Committee Meeting j. August 11, 2016 9:00 am Board of Trustees Meeting k. August 18, 2016 5:30 pm Community Outreach Committee Meeting Board of Trustees Meeting Agenda June 9, 2016 Page 3 of 3
2. Upcoming RTAA Events a. June 11, 2016 11:00 am Annual Employee Summer Picnic b. July 30, 2016 7:05 pm RTAA Family Night at Aces Ballpark c. TBD 4th Annual RTIA Tenant/Employee Appreciation Luncheon d. TBD 2016 Holiday Party
C. President/CEO’s Report
D. General Board comments, questions, and items for future Board meetings
XI. PUBLIC COMMENT, if any – Limited to three minutes per person
XII. 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.
SUPPORTING MATERIAL: The designated contact to obtain supporting material is Claire Johnson, 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 BRIEF OF MINUTES MEETING OF THE BOARD OF TRUSTEES May 19, 2016 9:00 a.m.
MEMBERS PRESENT ALSO PRESENT Rick Murdock, Vice Chair Marily M. Mora, A.A.E. Nat Carasali, Secretary President/CEO Jerry Hall, Treasurer Dean Schultz, A.A.E. Bill Eck Executive Vice President/COO Adam Mayberry Ann Morgan Jenifer Rose General Counsel Jessica Sferrazza Claire Johnson Clerk of the Board
MEMBERS ABSENT/EXCUSED Andy Wirth, Chair Lisa Gianoli
The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. Vice Chairman Rick Murdock called the meeting to order. The Pledge of Allegiance was recited.
III. PRESENTATIONS AND AWARDS A. Employee, Tenant and Special Recognitions None.
B. Introduction of New, Promoted and Retired Employees Dean Schultz, Executive Vice President/COO, introduced three new employees – Randy Young, Firefighter, Quan Tran, Police Officer, and Cesar Aranda, Police Officer.
Next, Mr. Schultz recognized one employee on his recent promotion – Casey Micone was promoted to the position of Driver/Operator in the Airport Fire Department effective February 8, 2016.
C. Tenant Communication None.
IV. PUBLIC COMMENT (limited to 3 minutes) None.
Meeting of the Board of Trustees May 19, 2016 Brief of Minutes Page 2 of 6
V. APPROVAL OF MINUTES On motion by Trustee Sferrazza, seconded by Trustee Eck, which motion duly carried by unanimous vote, the Board approved the minutes from the Board of Trustees meeting of April 14, 2016.
VI. APPROVAL OF AGENDA On motion by Trustee Rose, seconded by Trustee Carasali, which motion duly carried by unanimous vote, the Board approved the May 19, 2016 Board of Trustees meeting agenda.
VII. PUBLIC HEARING, DISCUSSION & ADOPTION OF FISCAL YEAR 2016-2017 BUDGET
A. #16(05)-11 Adoption of the Reno-Tahoe Airport Authority Fiscal Year 2016-2017 Budget
Vice Chair Murdock opened the Public Hearing and invited Rick Gorman, Chief Financial Officer, to the podium.
Mr. Gorman provided an overview of the proposed Fiscal Year (FY) 2016-2017 budget. He began by reviewing the process and stated that a Budget Workshop was held for Trustees on April 14, 2016 and today’s Budget Hearing was noticed in the Reno Gazette-Journal on May 9, 2016. Staff met with the signatory airlines on May 12, 2016 to review the proposed airline rates and charges for the upcoming fiscal year and no significant concerns were raised. Mr. Gorman indicated that pursuant to State law, the Authority must adopt the annual budget on or before June 1, 2016.
Next, Mr. Gorman reviewed the components of the upcoming FY budget as compared to FY 2015-2016 including passenger traffic, revenue, expenditures and key benchmarks. In conclusion, Mr. Gorman shared that the budget proposed for FY 2016-2017 is a balanced budget and the Reno-Tahoe International Airport continues to be a moderate cost airport with lowered airline rates and charges. The proposed budget includes funding of $5.399 million in strategic priorities, increased funding to retain and expand air service, a continued focus on diversifying Airport Authority revenues through land development and general aviation opportunities, and represents an overall commitment to excellent customer service.
Following Mr. Gorman’s presentation, Vice Chair Murdock asked if there were any comments from the public regarding the Airport Authority’s proposed FY 2016-2017 annual budget. There being no public comment, Vice Chair Murdock closed the Public Hearing and asked for a motion.
Trustee Sferrazza inquired as to the RTAA’s ability to do an augmentation to the budget after approval in case there is a need to add additional monies for air service marketing Marily Mora, President/CEO, responded that augmenting the funding could be handled at the mid-year budget review, if needed.
On motion by Trustee Hall, seconded by Trustee Eck, which motion duly carried by unanimous vote, the Board approved Agenda Item #16(05)-11 as follows:
Adopted the Reno-Tahoe Airport Authority Fiscal Year 2016-2017 Budget. Meeting of the Board of Trustees May 19, 2016 Brief of Minutes Page 3 of 6
VIII. COMMITTEE / LIAISON REPORTS Committee / Liaison reports were given by: A. Finance and Business Development Committee – Trustee Jerry Hall B. Planning and Construction Committee – Trustee Adam Mayberry C. Airport Noise Advisory Panel – Trustee Jenifer Rose D. Community Outreach Committee (COC) – Trustee Jessica Sferrazza E. Stead Liaison – Trustee Bill Eck F. RSCVA Board –Trustee Nat Carasali G. Air Service Liaison – Vice Chair Rick Murdock H. The Chamber Reno Sparks Northern NV – CEO Marily Mora I. Reno-Tahoe International Airport Users Committee – Trustee Adam Mayberry J. Compensation Committee – Vice Chair Rick Murdock K. State Legislative Priorities Committee – Vice Chair Rick Murdock
IX. CONSENT ITEMS FOR BOARD ACTION
A. #16(05)-12 Authorization for the President/CEO to Award a Construction Contract for the De- Icing Materials Storage Facility Project at Reno-Tahoe International Airport, with Reyman Brothers Construction, in the Amount of $312,000
On motion by Trustee Mayberry, seconded by Trustee Eck, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-12 as follows: Authorized the President/CEO to Award a Construction Contract for the De-Icing Materials Storage Facility Project at Reno-Tahoe International Airport, with Reyman Brothers Construction, in the Amount of $312,000.
X. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION
A. #16(05)-13 Approval to Award a Five (5) Year Contract for Janitorial Services for the Main Terminal Building at Reno-Tahoe International Airport, with Wow Cleaning Corporation, in the Amount of $966,000
Trustee Sferrazza asked for assurance that staff will be conducting a review of the policies related to purchasing contracts and professional services agreements. Ms. Mora deferred to Ann Morgan, Legal Counsel, to respond. Ms. Morgan stated that concern was expressed at the Finance & Business Development Committee that the weighting used in the scoring of this particular item may have been off, and therefore there will be a review of the weightings used in scoring future proposals. Trustee Sferrazza thanked Trustee Rose for committing the time to review the contracts and bringing the concern to the attention of the Board. Vice Chair Murdock expressed his appreciation of the Trustees’ time and effort given to serving on the committees.
On motion by Trustee Hall, seconded by Trustee Carasali, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-13 as follows:
Meeting of the Board of Trustees May 19, 2016 Brief of Minutes Page 4 of 6
Approved the Award of a Five (5) Year Contract for Janitorial Services for the Main Terminal Building at Reno-Tahoe International Airport, with Wow Cleaning Corporation, in the Amount of $966,000.
B. #16(05)-14 Adoption of Resolution No. 529: A Resolution Amending Resolution No. 525, a Master Fee Resolution Setting Forth Airport Rates and Charges for Fiscal Year 2016- 2017 Pursuant to the Reno-Tahoe Airport Authority Fiscal Year 2016-2017 Annual Budget
On motion by Trustee Mayberry, seconded by Trustee Rose, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-14 as follows:
Adopted Resolution No. 529: A Resolution Amending Resolution No. 525, a Master Fee Resolution Setting Forth Airport Rates and Charges for Fiscal Year 2016-2017 Pursuant to the Reno-Tahoe Airport Authority Fiscal Year 2016-2017 Annual Budget.
C. #16(05)-15 Authorization for the President/CEO to Execute an 18-Month Contract for the Reno-Tahoe Airport Authority Employee Life & Accidental Death and Dismemberment and Long Term Disability Insurance, with Symetra Financial for the Period July 2016 – December 2017, in the Amount of $202,017, and a 30-Month Contract with Vision Service Plan for the Period July 2016 – December 2018, in the Amount of $14,300, for Vision Third Party Administration Claims Processing and Preferred Provider Network Access
On motion by Trustee Hall, seconded by Trustee Mayberry, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-15 as follows:
Authorized the President/CEO to Execute an 18-Month Contract for the Reno-Tahoe Airport Authority Employee Life & Accidental Death and Dismemberment and Long Term Disability Insurance, with Symetra Financial for the Period July 2016 – December 2017, in the Amount of $202,017, and a 30-Month Contract with Vision Service Plan for the Period July 2016 – December 2018, in the Amount of $14,300, for Vision Third Party Administration Claims Processing and Preferred Provider Network Access.
D. #16(05)-16 Authorization for the President/CEO to Execute a One-Year Contract for the Reno- Tahoe Airport Authority Employee Worker’s Compensation Insurance Coverage for Fiscal Year 2016-2017, with Starr Aviation, in the Amount of $307,000
On motion by Trustee Hall, seconded by Trustee Mayberry, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-16 as follows:
Authorized the President/CEO to Execute a One-Year Contract for the Reno-Tahoe Airport Authority Employee Worker’s Compensation Insurance Coverage for Fiscal Year 2016-2017, with Starr Aviation, in the Amount of $307,000.
E. #16(05)-17 Adoption of a Reno-Tahoe Airport Authority Fiscal Year 2016-2017 Liability and Property Insurance Program and Approval of Premiums in the Amount of $919,108
Meeting of the Board of Trustees May 19, 2016 Brief of Minutes Page 5 of 6
On motion by Trustee Hall, seconded by Trustee Carasali, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-17 as follows:
Adopted a Reno-Tahoe Airport Authority Fiscal Year 2016-2017 Liability and Property Insurance Program and Approved the Premiums in the Amount of $919,108.
F. #16(05)-18 Discussion and Confirmation of the Chairman’s Reappointment of Trustee Nat Carasali to Serve a Two-Year Term on the Reno-Sparks Convention and Visitors Authority Board Effective July 1, 2016
Trustee Hall thanked Trustee Carasali for his service on the Reno-Sparks Convention and Visitors Authority (RSCVA) Board. He commented that during the last couple of years, there has been a significant change in direction of the RSCVA and he expressed appreciation of that to Trustee Carasali.
On motion by Trustee Hall, seconded by Trustee Eck, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(05)-18 as follows:
Confirmed the Chairman’s Reappointment of Trustee Nat Carasali to Serve a Two-Year Term on the Reno-Sparks Convention and Visitors Authority Board Effective July 1, 2016.
Vice Chair Murdock also expressed his appreciation of Trustee Carsali’s service on the RSCVA Board and asserted that this community needs his participation on the Board going forward.
XI. ITEMS FOR BOARD INFORMATION AND DISCUSSION
A. Presentations None.
B. Board Meeting Schedule Vice Chair Murdock referred to the schedule of upcoming meetings.
1. June 7, 2016 9:00 am Finance & Business Development Committee Meeting 2. June 7, 2016 10:00 am Planning & Construction Committee Meeting 3. June 9, 2016 9:00 am Board of Trustees Meeting 4. June 16, 2016 5:30 pm Community Outreach Committee Meeting 5. June 20, 2016 3:30 pm Airport Noise Advisory Panel Meeting 6. June 28, 2016 10:00 am State Legislative Priorities Committee Meeting 7. July 12, 2016 9:00 am Finance & Business Development Committee Meeting 8. July 12, 2016 10:00 am Planning & Construction Committee Meeting 9. July 14, 2016 9:00 am Board of Trustees Meeting
C. President/CEO’s Report Ms. Mora referred the Trustees to the written President/CEO Report included in their Board binders and offered to answer any questions they may have had. No questions were raised.
Meeting of the Board of Trustees May 19, 2016 Brief of Minutes Page 6 of 6
D. General Board Comments, Questions, and Items for Future Board Meetings Vice Chair Murdock asked if the Trustees had any comments, questions, or items for future Board meetings.
Trustee Carasali asked Ms. Mora to explain what the RTAA team did in terms of presenting important information to the Safari Club that was relevant to their assessment of the region and it being a place to move the convention back to. Ms. Mora responded that staff participated with a delegation from Reno that went to Tucson, AZ to make a presentation. Staff looked at current seat capacity and projected what the seat capacity will be in 2019. She said that a proactive approach was presented on how to fill the gaps and how to work with the airlines over the next couple of years on adding extra lift for the Safari Club International on the Sunday departure day. Creative ways were presented to keep the exhibitors in town in order to allow attendees to take the Sunday seats. Ms. Mora stressed that it is a partnership with the RSCVA and all of the properties in the area to make this work and to bring the conference back to Reno. Trustee Carasali commented that the Safari Club had never seen that type of presentation. Ms. Mora agreed and said a lot of things were put on the table, such as a hot line for people participating in large groups and more information about flights on the website, in order to make sure lift is not an issue for bringing conferences to our region.
Vice Chair Murdock stated that an action plan was developed prior to Safari Club making any decisions. He also shared that RTAA staff has already had conversations with JetBlue, Southwest, and American Airlines, etc.
Trustee Sferrazza inquired if there is any awareness as to when global entry will be coming. Ms. Mora responded that no date has been set but that RTAA would welcome COC participation in setting an optimal date to plan that for the community.
XII. PUBLIC COMMENT None.
XIII. ADJOURNMENT There being no further business, the meeting was adjourned at 9:56 am.
______Chair Andy Wirth
ATTEST:
______Secretary Nat Carasali *** These draft minutes have not yet been approved and are subject to revision at the next regularly scheduled meeting. *** Board Memorandum Reno-Tahoe Airport Authority
Date: June 1, 2016 Memo: # 16(06)–19 To: Chairman & Board Members For: June 9, 2016 Board Meeting From: Marily Mora, A.A.E, President/CEO Subject: AUTHORIZATION OF PUBLIC COMMENT PERIOD FOR AN AMENDMENT TO THE ADOPTED RENO-TAHOE INTERNATIONAL AIRPORT LAND USE PLAN
STAFF RECOMMENDATION Staff recommends that the Reno-Tahoe Airport Authority (RTAA) Board of Trustees authorize the President/CEO to open a public comment period for an amendment to the adopted Reno-Tahoe International Airport (RNO) Land Use Plan. The amendment will reflect the transfer of two (2) acres from Airfield Support use to Development Support use.
PURPOSE This action seeks authorization from the RTAA Board of Trustees for the President/CEO to open a public comment period for an amendment to the RNO Land Use Plan which was adopted by the RTAA Board of Trustees on March 12, 2015. This action will kick off a similar public outreach process to the one utilized during the original adoption of the RNO Land Use Plan in 2013.
The amendment to the RNO Land Use Plan is recommended to allow RTAA to convert an underutilized, previously unleased building and adjacent land to a potential revenue producing use. The amendment is in support of the RTAA Strategic Priority # 4 - Facilitate Economic Development at Both Airports, as adopted in the RTAA Fiscal Year (FY) 2014- 2018 Comprehensive Strategic Plan.
An illustration of both the existing, adopted RNO Land Use Plan (Exhibit A) and the proposed, amended RNO Land Use Plan (Exhibit B) are included with this Board Memo.
BACKGROUND Assessor’s Parcel Number (APN) 013-351-04 In 1991, the RTAA acquired a 10-acre parcel of land (APN 013-351-04), fronting Vassar Street. The parcel at that time included three buildings, all constructed in the mid-1960s.
Today, the original parcel includes four (4) buildings known as: • Airport Vassar Annex (AVA) 1 (aka the ACE Charter School building) • the Airport Communications Center and Materials Management Warehouse • AVA 2 • the Purchasing Trailer
AVA 2, situs address 2750 Vassar Street, is a 9,200+/- square foot one-story concrete block building built in 1964. Prior to RTAA ownership, the building was used as an automobile service repair garage. During the 25 years of RTAA ownership, the AVA 2 building has been used primarily for Facilities Maintenance purposes – from a weld shop to equipment and document storage. Due to Facilities Maintenance consolidation efforts to maximize RNO Land Use Plan Amendment # 16(06)-19 June 9, 2016 Board Meeting Page 2 of 3
efficiency and reduce operational costs, Facilities Maintenance buildings, offices, and services have been centralized within the terminal building or within the airfield maintenance yard. As a result, the AVA 2 building is no longer needed for Facilities Maintenance purposes and can be made available for potential revenue producing use due to its location along Vassar Street. The current annual rental value of the facility is $44,160 (9,200 square feet x $4.80 per square foot per annum).
The Purchasing Trailer, situs address 2770 Vassar Street, was located next to AVA 2 in 2004 to accommodate offices and conference room space for the Purchasing Division which had been displaced by the new Airport Communications Center. Although the Purchasing Trailer was never intended to serve as a permanent home for the Purchasing Division, to date there has been no critical need to relocate them. However, it is reasonable to assume that at some point in the future, the trailer could be removed and the land made available for potential revenue producing use.
Adopted Reno-Tahoe International Airport (RNO) Land Use Plan In 2013, the RTAA formally adopted an RNO Land Use Plan which provides a guide for the long-term future land use and development of Airport-owned property. The primary purpose of this document is to provide a plan upon which to base future development decisions while also preserving adequate land for existing and future Airport operations and facilities.
The existing plan currently identifies the land which houses AVA 2 building and the Purchasing Warehouse as reserved for Airfield Support purposes. In accordance with previous Board direction, staff is required to initiate a public comment process prior to changing the adopted land use from Airfield Support to Development Support.
DISCUSSION The existing plan separates Airport-owned property into seven (7) distinct Airport-specific categories: Airfield Operations, Airfield Support, Air Cargo Operations, General Aviation, Military, Commercial Passenger Facilities, and Development Support. Transferring the land which houses AVA 2 and the Purchasing Warehouse from Airfield Support use to Development Support use will have the following net impacts:
• two (2) fewer acres of property designated for Airfield Support purposes • two (2) additional acres of property designated for Development Support purposes
There are no impacts to the acreage identified for Airport Operations, Air Cargo Development, General Aviation, Military, or Commercial Passenger Facilities purposes.
In accordance with the public outreach process approved by the RTAA Board in October 2013, the amended RNO Land Use Plan will be presented at the June 7, 2016 Planning and Construction Committee meeting, and pending RTAA Board of Trustees authorization, the President/CEO will open a public comment period on Friday, June 10, 2016.
The proposed amended RNO Land Use Plan and the existing adopted RNO Land Use Plan will be available on the Airport website in PDF format and in hardcopy format at the RTAA Administrative Offices. Public notification of the proposed amendment and the opportunity to comment will include an announcement in the “Latest News” section of the RTIA website, RNO Land Use Plan Amendment # 16(06)-19 June 9, 2016 Board Meeting Page 3 of 3 advertisement in the Reno Gazette-Journal, and via an Airport e-blast. The public comment period will close at 11:59 PM on Sunday, June 26, 2016. This will allow for a 16-day public comment period. Discussion of public comments received and a formal request for approval of the proposed RNO Land Use Plan amendment will occur no earlier than the July 2016 Planning & Construction Committee and Board meetings.
FISCAL IMPACT Staff proposes to advertise in the Reno Gazette-Journal using a display advertisement twice: once on Sunday, June 12, 2016 and then again on Wednesday, June 15, 2016. The estimated $2,000 advertising costs will be paid for out of the Planning & Environmental Services Operations & Maintenance budget.
COMMITTEE COORDINATION The RNO Land Use Plan amendment is scheduled to be presented at the June 7, 2016 Planning and Construction Committee meeting.
RECOMMENDATION It is hereby recommended that the Board adopt the following motion:
“It is hereby moved that the Board authorizes the President/CEO to open a public comment period for an amendment to the adopted Reno-Tahoe International Airport Land Use Plan.”
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O A AUBURN WAY C I E N 6 115 M 3 AIR CARGO OPERATIONS S KIETZKE LN Adopted: March 12, 2015 Õ 210 DEVELOPMENT SUPPORT Amended: June, 09, 2016 110 AIRFIELD SUPPORT 159 GENERAL AVIATION 62 MILITARY
Board Memorandum Reno-Tahoe Airport Authority
Date: June 1, 2016 Memo: # 16(06)-20 To: Chairman & Board Members For: June 9, 2016 Board Meeting From: Marily Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO AMEND THE 30-YEAR LAND LEASE WITH LONGLEY CORNERS LLC BY EXTENDING THE RENT DEFERRAL PERIOD FOR AN ADDITIONAL TWELVE MONTHS (SEPTEMBER 17, 2016 – SEPTEMBER 16, 2017) ON APPROXIMATELY 2.78 ACRES OF LAND OWNED BY THE RENO-TAHOE AIRPORT AUTHORITY, LOCATED EAST OF LUTHER LANE BETWEEN EAST PECKHAM LANE AND SOUTH McCARRAN BOULEVARD
STAFF RECOMMENDATION Staff recommends that the Board of Trustees (Board) authorize the President/CEO to amend the 30-year Land Lease with Longley Corners LLC by extending the rent deferral period for an additional twelve (12) months (September 17, 2016 – September 16, 2017) on approximately 2.78 acres of land owned by the Reno-Tahoe Airport Authority, located east of Luther Lane between East Peckham Lane and South McCarran Boulevard, commonly referred to as Airport South (Property).
PURPOSE This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority # 4 – Facilitate Economic Development at Both Airports, by ensuring financial growth of the RTAA as a self-sustaining entity by maximizing non-airline revenue, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan.
BACKGROUND On May 21, 2015 the Board authorized the President/CEO to negotiate final terms and execute a 30 year land lease, with two (2) ten-year options to extend subject to Board approval, for a total possible term of 50 years (June 1, 2015 – May 30, 2064), with Longley Corners, LLC.
Longley Corners, LLC proposed to develop a facility with 125 canopy structures to accommodate RV’s and/or boats of varying size (Exhibit A) on the Property. As a part of the approval, Longley Corners LLC agreed to lease the land based on an appraised value of $0.44 per square foot per year, or $53,282 annually, for a minimum total contract value of $1,598,467. Additionally, Longley Corners LLC estimated a capital investment of approximately $1.2 million to develop the Property. Lease terms presented to the Board also included a rent deferral period of twelve (12) months as a development incentive due to the unique parcel shape and size, as well as restricted ingress and egress. Longley Corners LLC # 16(06)-20 June 9, 2016 Board Meeting Page 2 of 4
Further, the Property was advertised for five years without any interest. The lease was executed on September 17, 2015 and the initial 12-month rent deferral was set to expire on September 16, 2016.
DISCUSSION Following the economic decline in 2009, many contractors and subcontractors left Northern Nevada to find work in other communities. The recent increase in construction across all sectors has challenged developers to find contractors and subcontractors that can complete work in a timely fashion and for a reasonable cost.
Longley Corners LLC has experienced first-hand the shortage of contractors and subcontractors, struggling to find companies that have staff or time to construct the project this year. Longley Corners LLC had finalized the engineering plans and received General Contractor bids with the goal of submitting plans for City of Reno review by May 2016. During the General Contractor bidding process, it was determined that there is a lack of available contractors to complete the work in a timely manner. This caused Longley Corners LLC to delay submitting plans to the City of Reno for review.
To encourage Longley Corners LLC’s capital investment in the Property, staff initially recommended rent deferral for 12 months from land lease execution, or upon issuance of City of Reno Certificate of Occupancy, whichever occurred first. Staff is now recommending an extension of the rent deferral period for an additional 12 months (for a total of 24 months) or upon issuance of the first Certificate of Occupancy to ensure Longley Corners has adequate time to construct a quality project. A twenty-four (24) month rent deferral is consistent with other development projects on RTAA property.
Longley Corners LLC continues to be very interested and excited about this project but is concerned that if the project is rushed to meet the 12 month rent deferral timeframe, the project may not be of the same quality or caliber of other projects they have developed in the community, nor the quality represented to the RTAA Board.
Since the public approval process, no other entities have expressed interest in the Property. Staff maintains their position that this is the highest and best use of the Property. Staff believes that Longley Corners LLC will perform as originally approved with the twelve month rent deferral extension.
COMPANY BACKGROUND Longley Corners LLC, owner/operator of the Longley Corners Storage facility (http://www.longleycorners.com/index.html) is managed by Mr. Gary Sabatini. Mr. Sabatini has over 35 years of experience managing and operating storage facilities in northern Nevada. In addition to the Longley Corners Storage Facility, Mr. Sabatini, on behalf of Longley Corners LLC, has been the managing partner of the Caughlin Mini Storage facility (http://caughlinstorage.com) for 15 years.
Longley Corners Mini Storage was constructed in the year 2000 to address the market demand for mini storage in south Reno. The facility, which is 95% occupied, includes Longley Corners LLC # 16(06)-20 June 9, 2016 Board Meeting Page 3 of 4
368 units available in various sizes that can be used for business or personal use. The facility includes oversized steel gates and security cameras working 24/7 monitoring the property.
FISCAL IMPACT This amendment will not impact the minimum contract value that the project was estimated to generate based on the previous Board approval. The original approval estimated annual revenue of $53,282 in FY 2016/2017 from this project.
If this amendment is approved, Longley Corners LLC will be allowed to pay the required rent for FY 2016/2017, albeit at a future date. As outlined in the executed Lease, Longley Corners LLC will pay the Deferred Fixed Rent either in one lump sum or in equal monthly installments in an amount sufficient to amortize and pay in full the amount of the Deferred Fixed Rent over the remainder of the original thirty (30) year Term.
COMMITTEE COORDINATION This item is scheduled to be presented at the June 7, 2016 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 amend the 30-year land lease with Longley Corners LLC by extending the rent deferral period for an additional twelve (12) months (September 17, 2016 – September 16, 2017) on approximately 2.78 acres of land owned by the Reno-Tahoe Airport Authority, located east of Luther Lane between East Peckham Lane and South McCarran Boulevard.”
MMM/sh/cj Longley Corners LLC # 16(06)-20 June 9, 2016 Board Meeting Page 4 of 4
EXHIBIT A SITE PLAN
Board Memorandum Reno-Tahoe Airport Authority
Date: June 1, 2016 Memo: # 16(06)-21 To: Chairman & Board Members For: June 9, 2016 Board Meeting From: Marily Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO NEGOTIATE FINAL TERMS AND EXECUTE SUPPLEMENTAL LEASE AGREEMENT #00007 TO THE TRANSPORTATION SECURITY ADMINISTRATION LEASE NO. HSTS01-09-L-RES504 TO ADJUST THE RENTS EFFECTIVE JULY 1, 2016
STAFF RECOMMENDATION Staff recommends that the Board of Trustees (Board) authorize the President/CEO to negotiate final terms and execute Supplemental Lease Agreement #00007 to the Transportation Security Administration Lease No. HSTS01-09-L-RES504 to adjust the rents effective July 1, 2016. The term of the agreement will remain the same through June 30, 2019.
PURPOSE This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority # 4 – Facilitate Economic Development at both Airports, and the Guiding Principle of Financial Integrity, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. This action supports the financial growth of the RTAA as a self-sustaining entity by maximizing non-airline revenue.
BACKGROUND The Transportation Security Administration (TSA) was created by the 2001 Aviation and Transportation Security Act as a result of the September 11, 2001 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.
The RTAA has had a lease with the TSA at Reno-Tahoe International Airport for operations and office space since 2002. In that year, total annual rents paid were $160,766 for 3,160 square feet of space. Since that time, the amount of space the TSA leases has grown and today they lease approximately 5,879 square feet (sf) of airline operations and operations office space on the first floor of the B-Concourse and airline office space behind the ticket counters. Their current annual rent is $340,933. Since 2002 through FY 2016-17, the TSA will have paid the RTAA a little over $3,000,000 in space rents.
DISCUSSION The TSA has informed the RTAA that it is proposing to consolidate its off-airport offices by leasing more space at the Reno-Tahoe International Airport. Staff has been in negotiations with the TSA for additional operations and operations office space on the first floor of the B- Concourse. The TSA has confirmed in writing that they will work with the Airport to acquire 685 sf of additional space at an annual cost of $33,846. They have also indicated interest in TSA Supplemental Lease Agreement # 16(06)-21 June 9, 2016 Board Meeting Page 2 of 2
another 653 sf of space at an annual cost of $32,265. If TSA takes both spaces, this would add a total additional 1,338 sf of space and an additional annual amount of $66,111 to the current FY 2016-17 contract value of $333,962, bringing the total leased space to 7,217 sf and the FY 2016- 17 contract value to $400,073.
The RTAA’s current lease with the TSA has an effective date of July 1, 2009 through June 30, 2014 with one 5-year renewal option that commenced July 1, 2014 and will expire June 30, 2019. The purpose of this amendment or “supplemental lease agreement” to the current TSA lease is to adjust the rental rates for the next fiscal year. Typically, rent adjustments do not go to the Board for approval as the rates are set by the Master Fee Resolution that is already approved by the Board. However, because the annual rental amount of the TSA lease, assuming the funds are appropriated, is over $100,000, staff is taking this opportunity to bring the TSA lease to the Board’s attention for a historical perspective as well as for its review and authorization.
COMPANY BACKGROUND 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 on the average of 5,000 passengers per day.
FISCAL IMPACT Every July 1st, the airline rates and charges are adjusted through the Master Fee Resolution as approved each year by the Board. TSA’s rental rates are the same as the airline rates for airline operations and office space. Based on the new approved airline rates and charges effective July 1, 2016, the TSA’s total annual rental payment for FY 2016-17 will be $333,962.
Should the TSA obtain funding to add more space to their current leasehold, the total fiscal impact, depending on the square footage, would range between $367,808 and $400,073.
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 June 7, 2016 Finance & Business Development Committee meeting.
RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion:
“It is hereby moved that the Board of Trustees authorizes the President/CEO to negotiate final terms and execute Supplemental Lease Agreement #00007 to the Transportation Security Administration Lease No. HSTS01-09-L-RES504 to adjust the rents effective July 1, 2016.”
MMM/lw/cj
Board Memorandum Reno-Tahoe Airport Authority
Date: June 1, 2016 Memo: # 16(06)-22 To: Chairman & Board Members For: June 9, 2016 Board Meeting From: Ann Morgan Subject: REVIEW AND POSSIBLE ACTION ON RECOMMENDED PERFORMANCE CRITERIA AND GOALS FOR RENO-TAHOE AIRPORT AUTHORITY PRESIDENT/CEO FOR FISCAL YEAR 2016-2017
COMPENSATION COMMITTEE RECOMMENDATION The Compensation Committee recommends the Board of Trustees approval of the performance criteria and goals attached hereto for Fiscal Year (FY) 2016-2017, which performance criteria and goals are required pursuant to Reno-Tahoe Airport Authority (RTAA) President/CEO’s employment contract and this Board’s action on December 11, 2014.
BACKGROUND Pursuant to the President/CEO’s contract, the Board of Trustees annually must establish and provide to the President/CEO the performance goals and criteria upon which the amount of discretionary bonus, if any, will be based. In addition, the Board of Trustees, at its December 11, 2014 meeting, required the Compensation Committee to meet and recommend performance goals and criteria for the upcoming fiscal year by the June Board meeting to ensure that the goals and criteria were set prior to the start of the next fiscal year.
DISCUSSION The Compensation Committee, consisting of Chairman Andy Wirth and Trustees Rick Murdock, Nat Carasali, and Lisa Gianoli, met on May 12, 2016 to discuss possible goals. The Committee reviewed the proposed goals and weights, and discussed them with President/CEO Mora. The goals are specifically aligned with the Strategic Priorities and Guiding Principles of the RTAA FY 2014-2018 Comprehensive Strategic Plan adopted by the Board and are also based on the adopted FY 2016-2017 Operating Budget.
Regarding the President/CEO’s performance goals relative to Strategic Priority # 1 - Increase Air Service, the Committee changed the metric regarding Average Daily Seats to require an increase to those seats by 4%. The Committee also recommends a more objective metric with respect to the Community Outreach Program under Continued Education of the Community regarding Air Service. The proposed metric provides for the development of a Community Outreach Program through 12 catchment area civic group memberships, 20 presentations, and growth of the RTAA email database by 5%. Finally, the Committee has moved the metric of meeting with the RTAA appointing entities to this goal.
The Committee recommends increasing the weighting for this goal to 30% instead of 25%, given the importance of this goal.
President/CEO Performance Criteria and Goals FY 2016-2017 # 16(06)-22 June 9, 2016 Board Meeting Page 2 of 3
The Committee discussed the President/CEO’s performance goals relative to Strategic Priority # 2 – Optimize General Aviation Operations and Services. The Committee believes that great strides have been made with respect to this goal and recommends that its metrics and weight remain the same for the ensuing FY 2016-2017.
The Committee also discussed performance goals as they relate to Strategic Priority # 3 - Expand Cargo Development and Service. Given the importance of Cargo on the landing fees, the Committee recommends that the metrics and weight of this goal remain the same for FY 2016- 2017.
Regarding Strategic Priority # 4 – Facilitate Economic Development at Both Airports, the Committee recommends the addition of a metric relative to achieving progress on the Master Plan. Completion of 60% of the Master Plan for Reno-Tahoe International Airport is recommended as a metric. Significant discussion regarding the weight to be given this goal ensued, with the Committee ultimately recommending a weight of 10% for this goal.
The performance goals recommended to meet Strategic Priority # 5 – Provide a Positive Environment and Experience for All, have been amended to create a more specific metric by requiring the establishment of a Baseline Measurement for Overall Media Valuation as well as adding a metric to Analyze Senior Leadership Development and implement a Leadership Development program. The Committee did not change any other metrics and recommends a weight for this goal of 15%.
Regarding the goals that attach to the Guiding Principles/Operating Practices at the RTAA, the Committee left the metrics and weight of the Safety and Security Goal as proposed.
The performance goal for the Guiding Principle relative to Financial Integrity did not change with respect to metrics, but the Committee recommends reducing the weight of the goal to 10%, and notes that Financial Integrity, while important, is part of the essential functions of the President/CEO’s job.
The Committee also discussed the performance goal for the Guiding Principle of Professionalism and Ethics and recommends deleting this as a goal given that under the President/CEO’s contract, if she fails to meet this requirement, she can be dismissed.
Finally, the Committee recommends adding a metric for the Guiding Principle of Environmental Responsibility to require the President/CEO to explore Financial Feasibility of Renewable Energy Projects and Obtain Funding if available. The Committee also recommends that the President/CEO continue to enhance the RTAA’s Sustainability Program. The Committee recommends that a weight of 5% be given to this goal.
FISCAL IMPACT There is no fiscal impact relative to the action to be taken by the Board at this time. The action to be taken is solely the setting of the performance goals and attaching weights to those goals in accordance with the President/CEO’s contract. In November or December of 2017, the President/CEO’s discretionary Bonus for FY 2016-2017 will be dependent on how well she
President/CEO Performance Criteria and Goals FY 2016-2017 # 16(06)-22 June 9, 2016 Board Meeting Page 3 of 3 achieves the performance goals and criteria approved by this Board for FY 2016-2017. She may receive up to 20% of her then salary as a discretionary bonus.
RECOMMENDED MOTION The Compensation Committee hereby recommends that the Board adopt the following motion:
“It is hereby moved that the Board approves the performance criteria and goals for FY 2016- 2017, and the weight to be accorded each goal, for Reno-Tahoe Airport Authority President/CEO, as unanimously recommended by the Compensation Committee.”
AM/cj
RTAA PRESIDENT/CEO PERFORMANCE CRITERIA AND GOALS FY 2016-2017
Goals are based on the Comprehensive Strategic Plan FY 2014-2018 as budgeted in the FY 2016-2017 budget to be adopted on May 19, 2016.
STRATEGIC PRIORITY PERFORMANCE GOALS AND MEASUREMENTS
Priority #1: Increase Air 30% • Number of Airline Meetings - 35 Service • Average Number of Carriers - 7 • Average Number of Destinations – 15 • Increase Average Daily Seats by 4% from 6,026 to 6,267 • Continued Education of the Community Regarding Air Services • Create an Air Service Community Awareness Campaign. • Develop Community Outreach Program measured by 12 catchment area civic group memberships, 20 presentations and growth of the RTAA email database by 5 percent. • Plan and Coordinate the Boyd Conference. • Host Airline Representatives at the Boyd International Aviation Forecast Summit. • Meet with RTAA appointing entities annually. Priority #2: Optimize 10% • Request Board Approval for RNO General General Aviation Aviation Minimum Standards (carryover Operations and Services from FY 2015-2016)
Page 1 of 4
• Request Board Approval for Stead Airport (RTS) General Aviation Minimum Standards • Publish Four RNO General Aviation Newsletters Priority #3: Expand Cargo 10% • Use Best, Commercially Reasonable Development and Service Efforts to Maintain or Increase Pounds of Total Cargo Weight Annually • Use Best, Commercially Reasonable Efforts to Maintain or Increase Pounds of Cargo Aircraft Landed Weight Priority #4: Facilitate 10% • Execute Ground Lease for Aloft Hotel at Economic Development at RNO Gateway Center Both Airports • Facilitate NASA’s Build 2 Event at Reno- Stead Airport, including testing by several of their industry partners • Complete 60% of Master Plan for RNO Priority #5: Provide a 15% • Establish a Baseline Measurement for Positive Environment and Overall Media Valuation (vs. 300 Hours of Experience for All Positive Earned Media) • Fill Clear Channel’s Allotted Television Advertising Time in Gate Area Hold Rooms with Air Service Messaging • Maintain Management Turnover Rate of Bad Attrition at or Below 7% (Excluding Retirements) • Redesign and Implement the RTAA Intranet Website Using a Modern Content Management System • Implement an In-Terminal and Online Customer Service Survey Program • Implement Secure Off-Site Data Backup for all Data • Develop/Implement Action Plans to Improve Employee Satisfaction Based on Identified Needs from Spring 2016 Best Places to Work Survey
Page 2 of 4
• Conduct Employee Satisfaction Survey • Within the First Four Months of the New Fiscal Year, Conduct Analysis to Identify Specific Focus of the Senior Leadership Development. The Balance of the Year, Implement Leadership Development Program Identified from the Initial Analysis with the Purpose of Addressing Concerns Expressed in the 2015 Employee Satisfaction Survey. To be Completed by June 30, 2017 GUIDING PRINCIPLES/OPERATING PRACTICES Safety and Security 10% • Pass Part 139 Annual Airport Certification Inspection—No more than 10 discrepancies noted by FAA • Execute Triennial Mass Casualty Full-Scale Disaster Drill with Participation by 25 Entities • Develop and Initiate an Information Systems Security Plan • Pass Part 1542 Airport Security Inspection—No more than 10 Discrepancies by TSA • Conduct a Part 1542 Annual Airport Security Exercise—10 outside agencies participating • Update Airport Layout Plan for Reno- Tahoe International and Reno-Stead Airports Air Service Development See #1 under Strategic Priorities Customer Service See Strategic Priority #5
Financial Integrity 10% • Non-Airline Revenue per Enplaned Passenger – FY 2016-17 Budget of $16.24 • RNO Building and Land Rent –FY 2016-17 Budget of $6,653,800 • RTS Building and Land Rent –FY 2016-17
Page 3 of 4
Budget of $690,000 • Maintain 382 Days of Cash on Hand as Adopted in FY 2016-2017 Budget • Maintain Cost Per Enplanement as Adopted in FY 2016-2017 Budget ($7.65) • Obtain Investment Advisory Services • Implement Warehouse Automation Upgrade Environmental 5% • Explore Financial Feasibility of Renewable Responsibility Energy Projects (i.e. Solar) and Obtain Funding, if Available. • Continue to Enhance RTAA’s Sustainability Program
Page 4 of 4
Board Memorandum Reno-Tahoe Airport Authority
Date: June 1, 2016 Memo: # 16(06)-23 To: Chairman & Board Members For: June 9, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: APPROVAL OF THE FISCAL YEAR 2016-2017 RENO-TAHOE AIRPORT AUTHORITY BOARD OF TRUSTEES MEETING CALENDAR
STAFF RECOMMENDATION Staff recommends Board approval of the Fiscal Year 2016-2017 Reno-Tahoe Airport Authority (RTAA) Board of Trustees regular meeting calendar.
PURPOSE The purpose of this action is to review and approve the proposed calendar to pre-schedule monthly meetings of the RTAA Board of Trustees. The proposed meeting calendar is attached to this Board memo. This action is in support of Strategic Priority # 5 – Provide a Positive Environment and Experience for All, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan, by fostering a collaborative and supportive working relationship between staff and the Board of Trustees.
DISCUSSION Per RTAA Bylaw 9341 of the Board of Trustees, the Board shall meet monthly as determined by the Chairman, with approval of a quorum of the Board. The monthly meetings of the Board shall be on the second Thursday of each month unless such meeting date conflicts with a holiday as set forth in NRS 236.015, or such other conflict as the Chairman, with the approval of a majority of a quorum of the Board, may determine.
Please note the following exceptions to the RTAA Bylaws:
1. Per NRS 354.596 (4.)(d) Annual Budget hearings must be held the third Thursday in May.
The attached Board meeting calendar for FY 2016-2017 outlines the proposed dates for Committee meetings and Board meetings subject to Board approval. Once a new Chairman is elected on July 14, 2016 for FY 2016/2017, the Chair will set a date for the 2016 Board of Trustees Retreat.
Upon approval of this proposed Board Calendar, a final version will be distributed.
FISCAL IMPACT None identified at this time. FY 2016-2017 Board Meeting Calendar # 16(06)-23 June 9, 2015 Board Meeting Page 2 of 2
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 approves the FY 2016-2017 Reno-Tahoe Airport Authority Board of Trustees meeting calendar.”
MMM/cj Draft for Approval
JULY S M T W T F S 1 2 3 4 5 6 7 8 9 2016-17 10 11 12 13 14 15 16 17 18 19 20 21 22 23 BOARD MEETING CALENDAR 24 25 26 27 28 29 30 31
AUGUST SEPTEMBER OCTOBER NOVEMBER S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 1 1 2 3 4 5 7 8 9 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8 6 7 8 9 10 11 12 14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 11 12 13 14 15 13 14 15 16 17 18 19 21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22 20 21 22 23 24 25 26 28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29 27 28 29 30 30 31
DECEMBER JANUARY FEBRUARY MARCH S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 6 7 1 2 3 4 1 2 3 4 4 5 6 7 8 9 10 8 9 10 11 12 13 14 5 6 7 8 9 10 11 5 6 7 8 9 10 11 11 12 13 14 15 16 17 15 16 17 18 19 20 21 12 13 14 15 16 17 18 12 13 14 15 16 17 18 18 19 20 21 22 23 24 22 23 24 25 26 27 28 19 20 21 22 23 24 25 19 20 21 22 23 24 25 25 26 27 28 29 30 31 29 30 31 26 27 28 26 27 28 29 30 31
APRIL MAY JUNE S M T W T F S S M T W T F S S M T W T F S HOLIDAY 1 1 2 3 4 5 6 1 2 3 COMMITTEE MEETINGS 2 3 4 5 6 7 8 7 8 9 10 11 12 13 4 5 6 7 8 9 10 BOARD MEETINGS 9 10 11 12 13 14 15 14 15 16 17 18 19 20 11 12 13 14 15 16 17 BOARD RETREAT - DATE TBD 16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24 23 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 30 President/CEO’s Report May 2016 Marily M. Mora, A.A.E., President/CEO______
Air Service • Reno-Tahoe International Airport (RNO) served 273,707 passengers in April 2016, which is up 6.6% versus April 2015. This represents the twelfth monthly year-over-year passenger increase at RNO. During the first four months of 2016, RNO served 1,115,356 passengers, representing an increase of 9.8% when compared to the same period last year.
TOTAL PASSENGERS
Total Passengers April-16 Passengers Passengers % Diff. % Diff. 2014 2015 2016 JAN 241,181 246,571 2.2% 259,868 5.4% FEB 228,035 234,763 3.0% 269,807 14.9% MAR 278,172 277,477 -0.2% 311,974 12.4% 1st Quarter 747,388 758,811 1.5% 841,649 10.9% APR 266,800 256,823 -3.7% 273,707 6.6% MAY 282,277 276,969 -1.9% JUN 316,720 319,309 0.8% 2nd Quarter 865,797 853,101 -1.5% JUL 332,242 350,823 5.6% AUG 318,965 336,948 5.6% SEP 284,931 297,299 4.3% 3rd Quarter 936,138 985,070 5.2% OCT 266,701 295,749 10.9% NOV 225,384 253,494 12.5% DEC 263,682 286,105 8.5% 4th Quarter 755,767 835,675 10.6% TOTAL 3,305,090 3,432,657 3.9% YTD Total 1,015,634 1,115,356 9.8%
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• In April 2016, RNO was served by eight airlines providing 55 peak daily departures to 17 non-stop destinations (22 non-stop destinations if seasonal and new announced flights are included). At RNO, total seat capacity increased 5.8% and departures remained the same when compared to April 2015.
• Starting June 5, 2016, Southwest Airlines will begin non-stop flights between RNO and Oakland International Airport (OAK) three times a day. The airline will utilize a 143-seat Boeing 737-700 aircraft on this route.
• Starting June 9, 2016, Allegiant Air will begin non-stop flights between RNO and Los Angeles International Airport (LAX) twice a week. The airline will provide this service on Thursdays and Sundays.
• Starting August 15, 2016, JetBlue Airways will begin non-stop flights between RNO and Long Beach Airport (LGB), providing both business and leisure travelers another option for travel between Reno and the Los Angeles basin. The airline will fly the route with a 150-seat Airbus 320.
• Starting December 19, 2016, Delta Air Lines will begin non-stop flights between RNO and Atlanta International Airport (ATL). The Atlanta-Reno flight will begin as three times per week service during the holidays, from December 19, 2016 until January 3, 2017. Then the service will be offered once a week with a Saturday arrival and Sunday departure, between January 7 and March 26, 2017. The airline will utilize a 183-seat Boeing 757 on this route.
• Recent and Upcoming Schedule Changes Alaska Airlines o On March 13, 2016, the new schedule for non-stop flights between Reno and Boise was re- timed as follows: . Boise to Reno: • AS2157 9:25 AM - 9:42 AM . Reno to Boise: • AS2164 4:35PM - 6:58 PM
o On March 13, 2016, the non-stop flights between Reno and San Jose were re-timed as follows: . San Jose to Reno: • AS2250 7:35 AM - 8:30 AM • AS2017 6:15 PM - 7:10 PM . Reno to San Jose: • AS2183 6:00 AM - 6:55 AM • AS2320 5:50 PM - 6:44 PM
Allegiant Air The non-stop flights between Reno and Las Vegas operate on Wednesdays, Fridays and Sundays.
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American Airlines o Starting June 2, 2016, American Airlines increased the number of non-stop flights between Reno and Los Angeles from four times a day to five times a day.
o Starting June 5, 2016, American Airlines will increase the number of non-stop flights between Reno and Chicago from once a day to twice a day.
o Starting June 3, 2016, American Airlines will increase the number of non-stop flights between Reno and Dallas from twice per day to three times per day. The additional third flight will be operated on Mondays, Tuesdays, Fridays and Saturdays.
Delta Air Lines The seasonal non-stop flight between Reno and Minneapolis will operate from June 11, 2016 until August 27, 2016. The airline will offer this route on Saturdays only.
JetBlue Airways o The non-stop flights between Reno and New York City will operate daily until September 6, 2016. The flight then reduces to a four times a week schedule for the fall season on Mondays, Thursdays, Fridays and Sundays.
o The non-stop flight between Reno and Long Beach Airport begins on August 15, 2016. It will depart Reno at 2:15 pm and arrive in Long Beach at 3:40 pm. It will depart Long Beach at 12:15 pm and land in Reno at 1:30 pm.
United Airlines The seasonal twice a week non-stop flight between Reno and Houston will return on June 11, 2016 for the summer season and will operate on Saturdays and Sundays only.
Southwest Airlines o Reno-Oakland schedule: . Oakland to Reno: • WN553 10:50 AM - 11:40 AM • WN2867 4:10 PM - 5:00 PM • WN480 8:45 PM - 9:35 PM . Reno to Oakland: • WN3185 6:10 AM - 7:15 AM • WN1140 9:30 AM - 10:35 AM • WN3505 5:35 PM - 6:40 PM
Volaris o The non-stop flights between Reno and Guadalajara, Mexico operate on Mondays, Wednesdays, and Fridays.
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Air Cargo Update • Passenger and cargo airlines are required to submit airline activity reports to RNO on monthly basis. These reports are used for billing purposes and to track monthly passenger count and air cargo volumes. Unfortunately, one of the cargo airlines at RNO has identified a problem with their data reporting system and is unable to provide cargo volumes at this time. The airline expects this issue to be resolved in a few weeks. Until then, cargo volumes will not be included in the monthly statistical reporting.
• Starting June 20, 2016, Redding Aero will operate cargo flights on behalf of DHL. The airline will operate five times a week, Monday thru Friday, utilizing Cessna Caravans. The plane will arrive in Reno around 5:00 PM to 6:00 PM and will depart around 7:10 PM. Redding Aero is replacing Ameriflight operations at RNO, which currently operates for DHL.
Parking Comparison
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Business Development Reno-Stead Airport Economic Development (AED)
• Reno-Stead Airport Business Park Development Following the February 11, 2016 Board approval of the Memorandum of Understanding (MOU), Master Developer Agreement, and Phase I Ground Lease with Dermody Properties & Hillwood Investment Properties (DPHW), staff and Legal Counsel drafted the Master Developer Agreement (MDA). The MDA is currently being reviewed by DPHW. Staff and legal counsel also drafted the Phase I Ground Lease that will be included as an exhibit of the final MDA. DPHW has been reminded that until these agreements are executed, there can be no development at Reno-Stead Airport (RTS).
Staff continues to engage the local community and residents adjacent to the development of an airport-centric business park at RTS. In addition to meeting with the North Valleys Citizen Advisory Board (CAB) on April 11, 2016, the Reno-Stead Airport Association tenant group on April 12, 2016, and the Silver Lake/Silver Knolls Property Owners Association on April 20, 2016, staff updated the Ward 4 Neighborhood Advisory Board (NAB) on May 19, 2016. The groups expressed that they appreciate being kept updated on the project and look forward to future updates as development occurs.
Staff also met with the Reno Air Racing Association (RARA) Board of Directors on May 10, 2016 to provide an update on the project.
Reno-Tahoe International Airport (RNO) General Aviation
• CEO Advisory Group on GA Minimum Standards (GAMS) In April 2016, the RTAA entered into a Professional Services Agreement (PSA) with Aviation Management Consulting Group (AMCG) to review the draft version of the General Aviation Commercial Minimum Standards (GAMS) developed by the CEO Advisory Group. On May 25, 2016, staff met with Jeff Kohlman principal of AMCG, to discuss the results of their “Review and Comment” of the proposed draft GAMS. Staff will meet with the CEO to review AMCG’s recommended changes to the draft GAMS document and will ultimately reconvene the CEO Advisory Group to review changes and seek to adopt “Best Practices” as proposed by AMCG and approved by the CEO.
• Atlantic Aviation
Fuel Storage Facility Atlantic Aviation began its mobilization efforts in preparation for the construction of its fuel storage facility. The project completion date is anticipated to be July 1, 2016, weather permitting. The fuel storage facility is exclusively for storage of Jet A, Avgas and Mogas (automobile fuel) and will not be used for self-serve fueling operations.
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New General Manager Atlantic Aviation has named a new General Manager, Patrick Wink. Mr. Wink began on May 31st and comes to Reno from Cleveland, Ohio. Mr. Wink replaced Trent Brownlee who has accepted another General Manager position within Atlantic.
Reno-Stead Airport General Aviation • CEO Advisory Group on GA Minimum Standards (GAMS) Staff met with the CEO on May 19th to finalize the list of Reno-Stead Airport (RTS) CEO Advisory Group volunteers who have expressed interest in participating in the process to establish General Aviation Commercial Minimum Standards (GAMS) for RTS. The CEO Advisory Group will be composed of eleven (11) RTS volunteers, two (2) RTAA staff, and one (1) Board member.
The CEO Advisory Group initial organizing meeting is scheduled for June 13, 2016 at 4:30pm at the RTS Freedom Flight Terminal EOC Meeting Room.
Outside Commercial Properties
• 1280 Terminal Way
Ultimate Garage Floors & SFC A 12-month First Amendment to Commercial Lease Agreement was executed with Ultimate Garage Floors & SFC for 265 square feet of office space at 1280 Terminal Way. Ultimate Garage Floors & SFC specializes in concrete floor coating and garage storage systems, and utilizes the space as a general office. The total 12-month contract value is $2,566.92.
Letty’s Cleaning Services A new 12-month Commercial Lease Agreement was executed with Letty’s Cleaning Services for 208 square feet of office space at 1280 Terminal Way. Letty’s Cleaning Services is a small janitorial company that will be utilizing the space as a general office. The total contract value is $2,121.60.
Organizational Training & Development • RTAA Legal Counsel, Ann Morgan, and colleague Shannon Pierce, presented a class titled “Advanced Family and Medical Leave Act (FMLA) Issues”. This class discussed how managers and supervisors can ensure their employees’ FMLA rights are maintained while preventing others from taking unfair advantage of the program. Attendees learned about general FMLA principles, what supervisors should and shouldn’t do, and the role of Human Resources (HR).
• In support of the organization’s succession planning efforts, HR staff presented a new class titled “The Other Side of Performance Appraisals”. This class was intended for the “reviewee” and covered effective ways to talk to one’s manager in order to get the most of the performance review process and take a proactive approach in managing this aspect of career development.
• HR staff coordinated a “respiratory protection” class for new employees. Taught by Airport Firefighters, this class provided a review of respiratory protection standards and practices, as well as how to be safe on the job when using the various types of respirators in use at the RTAA. President/CEO’s Report – May 2016 June 9, 2016 Board Meeting Page 7 of 12
• As part of the career development program, HR staff presented an Interview Skills workshop. In support of succession planning efforts, this program provides participants with useful tips and tools to help prepare them to interview for promotional opportunities.
• HR staff presented/coordinated computer training this month for employees. A Microsoft Outlook class was presented covering “Rules and Automatic Replies”, or how to get Outlook to do things for you when you’re not even there. Also, an advanced Excel class was offered which taught participants how to manage data through the use of pivot tables and charts.
Miscellaneous Information • Social Media continues to grow with Airport Facebook Followers at 11,497 and a monthly post reach of 1.5 million and Twitter with 5,304 followers. This month, the Airport featured: National Tourist Appreciation Day, during which we were able to thank our passengers with the help of the Kindness Takes Flight team; the RSCVA; Honor Flight Vietnam Veterans; and the depARTures Gallery opening, featuring artwork from Airport employees.
• On Monday, June 6, Reno-Tahoe International Airport will celebrate its June 5th inaugural non-stop flight from Reno to Oakland on Southwest Airlines. Southwest Airlines executives, community supporters, and news media will be in attendance. The new flight will operate three times a day on a 143-seat Boeing 737-700 aircraft. Southwest previously flew the Oakland-Reno route until June of 2013 and getting the non-stop Oakland service back has been a top priority for the Airport.
• On June 9th, the Airport will celebrate passengers on the inaugural Allegiant non-stop flight to Los Angeles. Gifts and refreshments will be presented to the travelers on this first new flight between Reno-Tahoe International and LAX on Allegiant.
• The 8th Annual Employee Art Show unveiling took place May 25, 2016, and the exhibit continues through July 27th. Entries from more than 80 artists in the areas of photography, mixed media, crafts, and more can be viewed in the depARTures Gallery located next to McDonalds.
• On June 1st, the Airport celebrated the opening of the 2016 KNPB Young Writer's Contest Exhibit. A special display of the 2016 KNPB winners of the PBS KIDS! Writers Contest will be available for viewing throughout the summer in the Reno-Tahoe International Airport’s Ticket Lobby.
• The Airport hosted the 13th Honor Flight Homecoming at Reno-Tahoe International Airport on May 21st. More than 200 guests came out to welcome home 44 Vietnam veterans after a four-day trip to the nation’s capital. This trip was called Nevada to Arlington, because families took the human remains of two local veterans to rest in Arlington National Cemetery.
• Staff worked with TSA and MorphoTrust to showcase the new, permanent office of the TSA Pre- Check enrollment center across from the Delta Air Lines ticket counters. News media covered the opening, and helped communicate the expanded hours of the conveniently located TSA Pre-Check enrollment center. The facility is open five days a week, from 8:00 am to 12:00 pm and from 1:00 to 5:00 pm, and allows individuals to enroll in the TSA Pre-Check program and other TSA identity programs, including the Transportation Worker Identification Credential (TWIC) and the Hazmat Materials Endorsement Threat Assessment Program. Staff also worked with news media to promote President/CEO’s Report – May 2016 June 9, 2016 Board Meeting Page 8 of 12
the fact that TSA Pre-Check is now open any time security lines are open. Previously, the Pre-Check lines were only staffed at peak hours.
• Beginning May 27 and continuing through June 30, 2016, the Airport Authority will be conducting a Customer Satisfaction Survey. The survey will take place for approximately 10 hours each week, for a five week period, and will be conducted at various times, to include early mornings, mid-day, and early evenings. Small teams of one or two people working in Baggage Claim and the Concourses will request passengers to take a short survey of their experience at the Reno-Tahoe International Airport, including such areas as parking, airline check-in, security, restaurants, retail and amenities.
• Staff served as a liaison between the news media and the City of Reno following an emergency landing of a Cessna in west Reno, responded to local media queries about increased TSA wait times and the EgyptAir flight 804, and pushed media to remind travelers of increased airport traffic over the Memorial Day weekend.
• The RTAA was recently recognized by the Economic Development Authority of Western Nevada (EDAWN) at their “The State of Washoe County Schools” luncheon held on May 24th. Mike Kazmierski, President and CEO of EDAWN, presented staff with a challenge coin in recognition of the RTAA’s long standing support and partnership, dating back to 2006.
• On May 26, 2016, the RTAA hosted the annual emergency exercise required by FAA Part 139 to maintain our commercial airport certification. This exercise was conducted using the discussion- based table top format. Partnering with the City of Reno this year, the scenario reviewed our joint response to an international air carrier accident. There were 107 attendees representing 28 agencies and entities for this review of our Airport Emergency Plan. Of note, the Canadian Consulate in San Francisco sent a representative who added some realism to the international component (the Mexican and Australian Consulates were also invited, but unable to attend). Volaris was our partner airline for the exercise.
The exercise was held at the Airport Plaza Hotel which would be the location of the Family Assistance Center in the event of an airline incident. Although the RTAA does emergency and security training throughout the year, this exercise is basic to the Airport’s FAA certification. Every third year, the FAA requires us to conduct a full-scale, live exercise, called the “Triennial Exercise”, and in May of 2017, the RTAA will be performing a full scale Triennial Exercise with over seventy (70) victim role-players in the field.
• Public Utilities Commission of Nevada – Battery Storage Technologies On the behalf of the Airport Authority, Ms. Kathleen M. Drakulich, McDonald Carano Wilson, and staff attended the May 19, 2016 Public Utilities Commission of Nevada (PUCN) workshop on the “Investigation Regarding Battery Storage Technologies” (Docket 16-010113). The PUCN has a strong interest in the policy and investment foundation of energy storage, particularly in the management of existing and future energy needs. Various energy storage stakeholders and the Airport Authority provided information and comments to the PUCN. PUCN Commissioner David Noble outlined the next steps to further the deployment of energy storage technologies in Nevada. The PUCN will open additional procedural orders to further investigate the NV Energy/Nevada Power (Utility) Interconnection and regulation amendments, the Utility planning processes for energy President/CEO’s Report – May 2016 June 9, 2016 Board Meeting Page 9 of 12
storage technologies, and the valuation of energy storage technologies in Nevada. The impending PUCN procedural orders will propose a series of additional formal and informal workshops to gather stakeholder input regarding energy storage technologies in Nevada. Staff will continue to keep the Board of Trustees apprised of this matter.
• Aircraft Rescue and Firefighting Facility (ARFF) Solar System New solar generation power numbers are not yet available.
• Recycling at Reno-Tahoe International Airport New recycling numbers are not yet available.
Quarterly Strategic Plan Update Next Quarterly Strategic Plan Update – July 2016 Report
State Legislative/Government Affairs Update • In support of the RTAA, the McDonald·Carano·Wilson (MCW) Government Affairs Group provides the following information on meetings and activities in May 2016:
RTAA Executive Team Update MCW apprised the RTAA executive team of the following government proceedings and provided input where appropriate: o June 1 adoption hearing for UAV regulation R016-16 o June 3 hearing: The Department of Taxation is proposing a change to the personal property tax depreciation schedule for aircraft. Historically, the Department has treated aircraft as having a 20-year life with a maximum depreciation of 95%. The Department is now proposing a 20-year life with a maximum depreciation of 80%. The Department is also making some other changes to the cost factors for aircraft. If this proposal is accepted, there will be more personal property tax due over the life of an aircraft, beginning on July 1, 2016. Since this proposed tax increase impacts owners of aircraft, the RTAA was quick to share this information with tenants at both RNO and RTS. o Provided a listing and analysis of the recommendations made by the Governor’s New Energy Industry Task Force o Proposed City of Reno business license tax calculation approach and the possible adverse effect on RTAA tenants; this information was also shared with Airport tenants o Attended the May 12th meeting of the Commission on Economic Development to observe and comment on proposed Governor’s Office of Economic Development (GOED) regulatory language: • Nevada Administrative Code (NAC) 360.472: GOED will draft language requiring board policy to be on the GOED website and also to establish some timeframes and a process for changes and adoption to Board policy in public meetings • NAC 360.475: This section proposed language that anyone with a Modified Business Tax (MBT) abatement cannot also have a data center or aviation abatement. This may cause challenges for recipients who happen to be located in a tax increment district. GOED will review the blanket prohibition and possibly allow “stacked” abatements in the appropriate circumstances. President/CEO’s Report – May 2016 June 9, 2016 Board Meeting Page 10 of 12
• NAC 360.4755: Proposes that equipment under an operating lease is not subject to the sales tax abatement. • NAC 360.4775: Assessing back taxes if there is a problem with abatement compliance. • NAC 231.023: Categories of information that can be deemed confidential in an abatement application. GOED is working on revisions and there will likely be a workshop before the GOED Board to approve, modify or reject.
Southern Nevada Economic Forum Attended the final meeting of the group, where decisions were made regarding the priorities to be carried by southern legislators into the 2017 legislature. MCW provided the list of final recommendations to the RTAA executive team when it became available.
After the Forum, arranged for Tina Iftiger, Vice President of Airport Economic Development, to meet with Assembly Democratic caucus leader Irene Bustamante Adams and with Assemblyman Elliot Anderson, the author of the 2015 UAV bill, to discuss potential adjustments to the UAS/drone statute.
Air Service Development Discussed with Assemblyman Pete Goicoechea his plan to once again carry Air Service Development (ASD) legislation for Elko in the 2017 legislative session. He has pre-filed his ASD legislation from the 2015 session and the bill will be released in July. Lt. Governor Mark Hutchison is coordinating a summit on ASD and RTAA staff is on the planning committee.
Legislator Meetings and Candidate Events o May 3 - Fundraiser for Assemblywoman Jill Dickman o May 4 - Fundraiser for Assembly Speaker John Hambrick o May 10 - Fundraiser for Assemblywoman Melissa Woodbury o May 11 • Met with Assemblywoman Irene Bustmante-Adams • Met with Senate Minority Leader Aaron Ford • Met with Assemblyman David Gardner • Met with Senator Becky Harris o May 12 – Fundraiser for Assembly candidate Jason Guinasso o May 16 – Fundraiser for NLV Mayor John Lee o May 17 • Fundraiser for Assemblyman Glenn Trowbridge • Met with Assembly candidate Zach Conine • Met with Assembly candidate Chris Brooks • Fisher hosted campaign fundraiser for Assemblywoman Heidi Swank o May 19 • Attended Governor’s luncheon with Assembly Majority Leader Paul Anderson and Assemblyman David Gardner • Fundraiser for Assembly candidate Zach Conine • Fundraiser for Assemblywoman Teresa Benitez-Thompson President/CEO’s Report – May 2016 June 9, 2016 Board Meeting Page 11 of 12
• Met with Assembly candidate Jason Frierson o May 20 – Attended luncheon event for Congresswoman Dina Titus o May 24 – Fundraiser for Senate Minority Leader Aaron Ford o May 25 • Fundraiser for Majority Leader Paul Anderson • Fundraiser for Assemblywoman Ellen Spiegel • Met with Senator David Parks • Met with Assemblywoman Maggie Carlton o May 26 – Met with Assemblyman Richard Carrillo o May 27 • Met with Assembly candidate John Piro • Met with Assemblyman Stephen Silberkraus
Other Relevant Community Meetings o May 5 - LV Metro Chamber event with Congresswoman Dina Titus as featured speaker. Titus talked about air service to Nevada and the importance of each and every new flight. o May 4 - Invited participation in a meeting with Senator Harry Reid o May 16 - Southern Nevada Tourism Infrastructure Committee meeting o May 18 - Reno Sparks Chamber presentation on workforce pipeline planning o May 25 – Economic Development Authority of Western Nevada (EDAWN) business leaders luncheon on ballot initiatives o May 26 - Governor’s New Energy Industry Task Force Meeting Federal Legislative/Government Affairs Update • The Porter Group LLC reports the following federal update for the Reno-Tahoe Airport Authority for the month of May 2016:
Porter Group’s focus in May continued to be on the Federal Aviation Authorization (FAA) bill and the Department of Transportation appropriations measure, but there was also some positive progress as it relates to getting additional CBP officers to RTIA.
Most recently, language has been included in two separate bills that are making their way through Congress which would allow the RTIA to pay for up to five full-time equivalent Customs and Border Protection Officers to supplement what the Airport already has. The two bills that contain our language are S. 3001, the Senate Homeland Security Appropriations measure and S. 461, the Cross-Border Trade Enhancement Act of 2015. S. 3001 passed the full Senate Appropriations Committee on Thursday, May 26th and S. 461 passed the full Senate Homeland Security and Government Reform Committee on Wednesday, May 25th. Both bills will now go to the Senate floor where they may or may not pass on their own. Porter Group is also hopeful that we will have language included in the FAA reauthorization bill, which would provide “three bites at this apple”.
In regard to the FAA reauthorization, top lawmakers on the Senate Commerce Committee have been calling on House Transportation Committee Chairman Bill Shuster to take up the Senate- passed reauthorization measure, or similar legislation, instead of Chairman Shuster’s more President/CEO’s Report – May 2016 June 9, 2016 Board Meeting Page 12 of 12
ambitious bill, which includes a plan opposed by many Republicans and Democrats to privatize the nation’s air traffic. With Chairman Shuster insisting that he is sticking with his bigger bill, we could be facing a major problem as there isn’t a clear pathway for passage with the air traffic control provision. The FAA is already being funded by a short-term extension, which Congress passed in March to give lawmakers until July 2016 to agree on a reauthorization, and we don’t believe there is an appetite to keep operating on these short-term bills. Porter Group is anticipating that there will be movement on this when Congress returns to Washington after the week-long Memorial Day district work period.
As for the legislation that would fund the Department of Transportation (DOT), and thus the FAA, the Senate was able to pass their version on May 19th by a vote of 89-8. The bill would provide the DOT with $74.6 billion in total appropriations, while the FAA would get $16.4 billion in total budgetary resources. In the House version of the bill, which has passed the full Appropriations Committee and is waiting for consideration on the House floor, the DOT would receive $76.9 billion in total funding for fiscal year 2017 and the FAA would get $16.3 billion.
Porter Group will continue monitoring these bills and lobbying the appropriate Congressional offices when the RTAA’s interests are effected. We are particularly excited about the possibility of the Airport getting the authority to donate resources to the CBP for additional officers since this is an issue that’s been worked on for quite a while and one that would have a sizable impact on the Airport and the entire Reno-Tahoe community.