Agenda Finance and Business Development Committee January 12, 2021 COMMITTEE MEMBERS PRESIDENT/CEO Trustees Daren Griffin, A.A.E. Jenifer Rose, Chair Lisa Gianoli, Vice Chair GENERAL COUNSEL Nat Carasali, Member Ann Morgan, Fennemore Craig Richard Jay, Member Carol Chaplin, Alternate CLERK OF THE BOARD Shaun Carey, Alternate Lori Kolacek Staff Liaison Randy Carlton, Chief Finance & Administration Officer AGENDA FINANCE & BUSINESS DEVELOPMENT COMMITTEE MEETING Tuesday, January 12, 2021 • 9:00 AM Pursuant to Section 1 of the State of Nevada Declaration of Emergency Directive 006 (“Directive 006”) the Reno-Tahoe Airport Authority will be hosting virtual public meetings until further notice. In-person attendance is not available during this time. Public Meeting Attendance Options: 1. To view this meeting on Zoom, visit https://us02web.zoom.us/j/82876846115, or visit https://zoom.us/join and enter the Webinar ID: 828 7684 6115. 2. To listen to this Zoom meeting, dial 1-669-900-6833 and enter the Webinar ID when prompted. Public Comment: Public comment is an opportunity for members of the public to address the Board on agenda and non-agenda items. Pursuant to Section 2 of Directive 006, anyone wishing to make public comment may do so by emailing comments to [email protected]. Comments received prior to 4:00 p.m. on the day before the meeting will be given to the Board for review and will be included with the minutes of this meeting. To make a public comment during the Zoom meeting, please make sure your computer or device has a working microphone. Use the “Chat” feature to submit a request to speak. Indicate your name and affiliation, the applicable agenda item, and a contact phone number. When the time comes to make public comments, you will be invited to speak. Public comment is limited to three (3) minutes per person. No action may be taken on a matter raised under general public comment. Public Meeting Notice: Pursuant to Sections 3 and 4 of Directive 006, this agenda has been posted at: 1. RTAA Administrative Offices – 2001 E. Plumb Lane, Reno 2. https://www.renoairport.com/airport-authority/public-meeting-information/agendas-minutes Supporting Materials: Pursuant to Sections 5 and 6 of Directive 006, supporting materials for this meeting can be found at https://www.renoairport.com/airport-authority/public-meeting- information/agendas-minutes. They can also be requested by contacting Lori Kolacek, 2001 E. Plumb Lane, Reno, NV (775) 328-6402. 1 Agenda Finance and Business Development Committee January 12, 2021 1. INTRODUCTORY ITEMS 1.1 Call to Order 1.2 Roll Call 2. PUBLIC COMMENT 3. APPROVAL OF MINUTES 3.5 December 8, 2020, Committee Meeting (for possible action) 4. ITEMS FOR REVIEW AND RECOMMENDATION TO THE BOARD 4.1 Board Memo #21(01)-05: Approve Extension of Professional Services Agreement with Crowe LLP, to Perform Audit Services for 2 Years in the Amount of $114,400 (for possible action) 4.2 Board Memo #21(01)-06: Acceptance of the Comprehensive Annual Financial Report for Fiscal Year 2019-2020 (for possible action) 5. ITEMS FOR DISCUSSION AND POSSIBLE ACTION 6. MEMBER COMMENTS, QUESTIONS AND REQUESTS FOR FUTURE AGENDA ITEMS 7. MONTHLY ADMINISTRATIVE REPORTS (Provided For reference only) 7.1 AR #2021-01: FY 2020-21 General Counsel’s Budget 7.2 AR #2021-02: FY 2020-21 Board of Trustee’s Budget 7.3 AR #2021-03: FY 2020-21 Legislative Consultant’s Budget 7.4 AR #2021-04: Financial Reporting Package - November 2020 8. PUBLIC COMMENT 9. ADJOURNMENT 2 Minutes Finance and Business Development Committee December 8, 2020 COMMITTEE MEMBERS PRESIDENT/CEO Trustees Daren Griffin, A.A.E. Jenifer Rose, Chair Lisa Gianoli, Vice Chair GENERAL COUNSEL Nat Carasali, Member Ann Morgan, Fennemore Craig Richard Jay, Member Carol Chaplin, Alternate CLERK OF THE BOARD Shaun Carey, Alternate Lori Kolacek Staff Liaison Randy Carlton, Chief Finance & Administration Officer MINUTES FINANCE & BUSINESS DEVELOPMENT COMMITTEE MEETING Tuesday, December 8, 2020 • 9:00 AM This meeting was held virtually Pursuant to Section 1 of the State of Nevada Declaration of Emergency Directive 006 Members Present: Jenifer Rose, Chair Lisa Gianoli, Vice Chair Nat Carasali Richard Jay Members Absent: None 1. INTRODUCTORY ITEMS 1.1 Call to Order The meeting was called to order at 9:00 a.m. 1.2 Roll Call Roll was taken by the Clerk of the Board. All members were present. 1.4 Public Comment None. 1.5 Approval of Minutes from November 10, 2020 (for possible action) Motion: Move to approve the minutes from November 10, 2020, as presented Moved by: Richard Jay Seconded by: Nat Carasali Aye: Committee Members Rose, Gianoli, Jay, Carasali No: None 1 Minutes Finance and Business Development Committee December 8, 2020 Abstain: None Vote: Motion passed unanimously 2. ITEMS FOR REVIEW AND RECOMMENDATION TO THE BOARD 2.1 Board Memo #20(12)-78: Authorization for the President/CEO to Execute an Agreement with GCR, Inc. to Upgrade RTAA’s Property and Revenue Management System in an Amount not to Exceed $300,000 Art Rempp (Information Technology Manager) presented this item to the Committee. After the presentation, the Committee took the following action: Motion: Move to recommend approval of this item to the full Board at the December 10, 2020 Board meeting. Moved by: Lisa Gianoli Seconded by: Richard Jay Aye: Committee Members Rose, Gianoli, Jay, Carasali No: None Abstain: None Vote: Motion passed unanimously 2.2 Board Memo #20(12)-84: Adoption of Resolution No. 548: Amending Resolution No. 544 – A Resolution Adopting an Update to Policy No. 600-007 on the Financial Incentives for Airline and Dedicated Cargo Carriers and Amending the Current Budget to add Two-Hundred Thousand Dollars in Fuel Tax Funds for the Purpose of Expansion and/or Attraction of Air Service at the Reno-Tahoe International Airport (RNO) (for possible action) Hasaan Azam (Air Cargo Business Development Manager) and Trish Tucker (Air Service Development & Community Engagement Manager) presented this item to the Committee. After a brief discussion, the Committee took the following action: Motion: Move to recommend approval of this item to the full Board at the December 10, 2020 Board meeting. Moved by: Nat Carasali Seconded by: Lisa Gianoli Aye: Committee Members Rose, Gianoli, Jay, Carasali No: None Abstain: None Vote: Motion passed unanimously 3. ITEMS FOR DISCUSSION AND POSSIBLE ACTION None. 2 Minutes Finance and Business Development Committee December 8, 2020 4. MEMBER COMMENTS, QUESTIONS AND REQUESTS FOR FUTURE AGENDA ITEMS None. 5. MONTHLY ADMINISTRATIVE REPORTS (Provided For reference only) 5.1 AR #2020-58: Administrative Award of Contracts - November 2020 5.2 AR #2020-59: FY 2020-21 General Counsel’s Budget 5.3 AR #2020-60: FY 2020-21 Board of Trustee’s Budget 5.4 AR #2020-61: FY 2020-21 Legislative Consultant’s Budget 5.5 AR #2020-62: Financial Reporting Package - October 2020 There was no discussion on these items. 6. PUBLIC COMMENT None. 7. ADJOURNMENT There being no further business, the meeting was adjourned at 9:47 a.m. 3 Board Memorandum To: Chairwoman & Board Members Memo #: 21(01)-05 From: Daren Griffin, President/CEO Date of Board Meeting: 01-14-2021 Subject: Approve Extension of Professional Services Agreement with Crowe LLP, to Perform Audit Services for 2 Years in the Amount of $114,400 Staff Recommendation Staff recommends that the Board of Trustees authorize the President/CEO to exercise a two-year extension option of a professional services agreement with Crowe LLP to perform auditing services in the total amount of $114,400. Purpose The existing agreement with Crowe LLP contains two 2-year options to extend the term and this action will authorize the President/CEO to exercise the second 2-year option for auditing services. This action is in support of the RTAA Strategic Priority #1 – Financial Diversification and Growth, as adopted in the Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan, to ensure the financial stability of the airports under the RTAA’s control ensuring that staff has maintained proper internal controls and reporting is transparent and accurate in all of our financial transactions Background The Nevada Revised Statutes, Section 354.624 requires that RTAA designate an independent auditor to complete an annual independent audit. The objective of the audit is to determine and report as to whether the financial statements are presented fairly and in conformity with generally accepted accounting principles. The objective also includes reporting on internal controls related to the financial statements and compliance with regulations associated with grant agreements, passenger facility charges and the expenditure of federal funds. Discussion The current agreement with Crowe LLP was approved by the Board on April 10, 2014 after a Request for Proposal (RFP) solicitation advertised on January 15, 2014 in the Reno Gazette Journal and a direct solicitation to 19 firms that had either expressed prior interest or were capable of providing such services. RTAA received six proposals and held interviews with three finalists resulting in Crowe LLP being selected as the firm whose proposal was most advantageous to RTAA. The RFP specified a 5-year term of service and two 2-year options to extend the term for up to a maximum term of nine years. Crowe LLP is one of the largest public accounting and consulting firms in the United States. Founded in 1942 in South Bend, Indiana, Crowe has extensive experience and expertise to provide audit services to public and private entities throughout the United States, including many airport entities. Crowes has over 3,000 personnel and is ranked as one of the nation’s top 10 accounting firms. RTAA is served by the Indianapolis, Indiana office of Crowe LLP as lead by Scott Nickerson, Certified Public Accountant (CPA), Page 2 Engagement Partner, and Kevin Kerswick CPA, Senior Manager.