PENINSULA AIRPORT COMMISSION



MINUTES

April 26, 2012

PRESIDED:  Stephen Mallon

 

 

The regularly scheduled meeting of the Peninsula Airport Commission was held on Thursday, April 26, 2012 at 8:00 a.m. in the Airport Commission Room at the Newport News/Williamsburg International Airport.

 

Commissioners present were:

Herbert H. Bateman, Jr., Aubrey H. Fitzgerald, LaDonna Finch, Edgar Maroney, George Wallace and Steve Mallon  

 

Executive Director  

Mr. Ken Spirito

 

Assistant Airport Director, Operations/Maintenance

Ms. Melissa Cheaney

 

Assistant Airport Director, Planning/Development

Mr. Ted Kitchens

 

Director, Marketing and Public Relations

Ms. Jessica Wharton

 

Director, Finance and Administration

Ms. Renee Ford

 

Legal Counsel   

Ms. Robyn Hansen

 

Executive Assistant

Ms. Rhonda Wissinger

 

Public in Attendance

Jonathan Cawley- The Daily Press

 

 

A quorum was present and the following actions were taken:

COMMENTS FROM THE PUBLIC

 

Chairman Steve Mallon asked if there were any comments from the public.  There were no comments from the public.

 

MINUTES OF THE COMMISSION MEETING March 22, 2012

 

RESOLVED, that the Peninsula Airport Commission approve the minutes of the Commission meeting held March 22, 2012.

 

Commissioner Aubrey Fitzgerald made the motion to adopt the March 22, 2012 minutes. Commissioner LaDonna Finch seconded the motion.

 

Voting yes were:

Herbert H. Bateman, Jr,. Aubrey Fitzgerald, LaDonna Finch, Edgar Maroney, George Wallace and Steve Mallon.

 

ASSISTANT AIRPORT DIRECTOR, OPERATIONS/MAINTENANCE REPORT

 

Ms. Cheaney reported the following:

 

• Our Annual FAA Airfield Inspection will be on May 8^th through 10^th
• State Funding from Department of Aviation (DOAV) has about $3.2 M in Discretionary Funding that it will be awarding.  There are 17-24 projects that have been submitted to receive these funds. Our airport submitted 7 projects to be funded.  The DOAV will be meeting on May 17^th and we do have a member that will be at the meeting to represent PHF.
• Bid for LED Conversion- There was an Energy Audit conducted at the airport and this helped us develop bid specs for LED conversion.  We have received bids, but this is a project we are waiting on state funds to implement. There will be an update at the next meeting.
• Airfield Lighting- all LED signage is in and mostly complete.
• Airport Closure- Contractors will need 14 nights to work on the airfield from 0030 to 0530 and this will be coordinated with airlines so they are aware of closure.  If for any reason there is a late flight or the runways need to be open, we will be able to let aircraft land if needed.

 

APPROVAL OF AWARD OF BID FOR DEPARTMENT OF PUBLIC SAFETY OFFICE SPACE

 

Ms. Cheaney reported that the Department of Public Safety Administrative offices and some of the airport badging functions are located in office space next to the old terminal building.  The maintenance of the facility has become a problem.  It is inefficient to heat and cool, and the roof has exceeded its useful life and will soon need to be replaced.  Ms. Cheaney recommends re-locating the Department of Public Safety Administrative offices to the first floor of the airport terminal.  This would provide several cost saving benefits.  Additionally, the badging function is currently preformed at the old terminal location and re-locating to the new terminal building will help to streamline this process and reduce staffing hours.  Also, with the elimination of dispatch, relocating the administrative staff to the terminal building will aid in coverage during emergency situations and in day-to-day operations.

 

The airport advertised this project publicly and received 5 bids.  The lowest bidder was York River Electric, Inc. 

 

Ms. Cheaney recommends the bid be awarded to York River Electric, Inc. at a cost of $62,178.00

 

RESOLVED, that the Peninsula Airport Commission approve the Award of Bid for Department of Public Safety Office Space to York River Electric, Inc. in the amount of $62,178.00.

 

Commissioner Aubrey Fitzgerald made the motion to approve the Award of Bid to York River General, Electrical and Service Incorporated in the amount of $62,178.00 Commissioner Ed Maroney seconded the motion.

 

Voting yes were:

Herbert H. Bateman, Jr,. Aubrey Fitzgerald, LaDonna Finch, Edgar Maroney, George Wallace and Steve Mallon.

 

ASSISTANT AIRPORT DIRECTOR, PLANNING/DEVELOPMENT REPORT

 

Ted Kitchens, Assistant Airport Director of Planning and Development gave the following report:

 

• Bid opening for concourse “B” renovations will be April 27^th at 2:00 p.m. in the Commission Room. There are 8 different general contractors holding plans and it appears that we will have 4 bids come through.  We will wait to see if we get state funding before awarding the bids.
• Taxiway Alpha is approaching 90% completion on plans. We anticipate being able to bid this out in July, 2012.
• Federal Inspection Station (FIS)- the plans have been reviewed by D.C. and are now in Indianapolis.
• Proposed Smithfield Hangar- Mr. Kitchens passed out plans for the proposed Smithfield hangar facility to the Commissioners for review. 

 

DIRECTOR OF MARKETING AND PUBLIC AFFAIRS

 

Jessica Wharton, Director of Marketing & Public Affairs was not at the meeting and Mr. Spirito gave the report in her absence:

 

• Passenger numbers are down 29% for the month of March and down 15.2% YTD. This is due to AirTran only operating in the airport the first 9 days of March. Norfolk numbers were up by 2.84% for the month of March and up 2.21% YTD.  Richmond was down 3% in March and down .37% YTD. 
• Daily Press Article- there was a Daily Press article in this past Saturday’s paper about our numbers being down.   
• Frontier Ads have been running to promote the new daily, year round service to Denver that will start on May 22nd. We are also trying to make the community aware that, not only is Frontier non-stop to Denver, but it offers connecting flights to the West Coast. These ads are running in the Daily Press, Richmond Times Dispatch, and on television.  
• Denver FAM Tour- next week there will be a group of 19 Travel Agents and one reporter going to Denver to help promote Frontier’s new service.  This group will be able to visit Denver and the many attractions it has to offer, as well as, be able to meet with the group sales department from Frontier Airlines. This well help them to better promote Denver.
• Denbigh Youth Baseball parade Saturday, April 14^th- Ms. Cheaney and Ms. Wharton took the FlyMobile to the parade and handed out some promotional items from the airport.  There were about 500 kids in attendance.
• Virginia Operations Council- Ms. Wharton participated as a speaker on a marketing panel with the state to discuss air service and promotions.

 

Mr. Spirito stated the airport is going through a re-building process and with new air carriers providing new service we are confident that we will be able to rebound from this. 

 

DIRECTOR OF FINANCE & ADMINISTRATION

 

Renee Ford, Director of Finance & Administration gave the following report:

 

Ms. Ford reported the Airport’s net revenues for March were significantly lower than budgeted expectations and well below last year’s performance for March 2011. Net revenues ended with a loss. Total revenues were 3% below budget and 6.8% below  March 2011. Our expenditures for March 2012 ended 31% above budget and 34.7% above March 2011.

 

Overall year to date net revenue was reduced but is still slightly ahead of budget at 1.8% and 21.5% behind last year.  This change is due to the aggressive marketing campaign promoting Denver service. 

 

APPROVE FY13 OPERATING BUDGET

 

Ms. Ford presented the FY 2013 Operating Budget. Ms. Ford stated that based on the anticipated reduction in our passenger levels for FY 2013, management has taken an extremely conservative approach to the budget. 

 

Our budgeted net revenues for FY 2013 are less than the FY 2012 budget.  We are minimizing our projected losses as much as possible.  The reduction in staff, salary freeze, reduction in repairs and maintenance, supplies and service, and travel have all been adjusted for the reduced passenger activity in FY 2013.  We have right sized the organization.  This will be a rebuilding year with hopes to rebound in FY 2014. 

 

Ms. Ford recommends approving the budget as presented.

 

RESOLVED, that the Peninsula Airport Commission approve the FY 2013 Operating Budget as presented.

 

Commissioner Ed Maroney made the motion to approve the FY 2013 Operating Budget as presented.  Commissioner Aubrey Fitzgerald seconded the motion.

 

Voting yes were:

Herbert H. Bateman, Jr,. Aubrey Fitzgerald, LaDonna Finch, Edgar Maroney, George Wallace and Steve Mallon.

 

EXECUTIVE DIRECTOR’S REPORT

 

Ken Spirito, Executive Director gave the following report:

 

• Peninsula NOW group- Mr. Spirito gave a presentation to the Peninsula NOW group.  He updated them on the airport and how important it is to reach the business community to help promote the airport. 

 

• Hampton City Council Leadership Breakfast- Mr. Spirito will be presenting on April 27^th.  Mr. Spirito will be discussing the airport and what we need to do as a community to promote and support the airport and its airlines.

 

APPROVE HANGAR 2A GROUND LEASE WITH FRANK SANDERSON

 

Mr. Spirito reported that Hangar 2A is up for renewal.  This renewal is similar to the others (an expired 20-year ground lease that allows the hangar to stay with the owner).  Mr. Spirito is recommending a renewal for 5 years with no options.  The hangar will become the PACs property upon expiration. 

 

All requirements have been updated and are similar to the previous GA leases that have been approved.  Legal counsel has prepared this lease and Mr. Sanderson is in agreement with the terms. 

 

With the renewal, we will see a rate increase to .75sf ($292.18/mo). Current rate is .60/sf ($232.73/mo).  Rent will increase 2% per year. 

 

Mr. Spirito recommends approval of the lease.

 

RESOLVED, that the Peninsula Airport Commission approve Hangar 2A Ground Lease with Frank Sanderson.

 

Commissioner Aubrey Fitzgerald made the motion to approve Hangar 2A Ground Lease with Frank Sanderson and Commissioner LaDonna Finch seconded the motion.

 

Voting yes were:

Herbert H. Bateman, Jr,. Aubrey Fitzgerald, LaDonna Finch, Edgar Maroney, George Wallace and Steve Mallon.

 

 

CLOSED MEETING        

        

BE IT RESOLVED, that the Commission enter into a Closed Meeting pursuant to the Virginia Freedom of Information Act; Section 2.2-3711.A. pertaining to:

 

1.         Discussion, consideration or interviews of prospective candidates for employment; assignment, appointment, promotion, performance, demotion, salaries, disciplining or resignation of specific public officers, appointees or employees of any public body.

 

2.         Discussion or consideration of the acquisition of real property for a public purpose, or of the disposition of publicly held real property, where discussion in an open meeting would adversely affect the bargaining position or negotiating strategy of the public body.

 

3.         The protection of the privacy of individuals in personal matters not related to

public business.

 

4.         Discussion concerning a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business’ or industry’s interest in locating or expanding its facilities in the community.

 

5.         Discussion or consideration of the investment of public funds where competition or  bargaining is involved, where, if made public initially, the financial interest of the

governmental unit would be adversely affected. 

 

6.         Consultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigating posture of the public body; and consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel. 

 

Commissioner George Wallace made the motion, seconded by Commissioner Aubrey Fitzgerald to hold a closed meeting.

 

Voting yes were:

Herbert H. Bateman, Jr., Aubrey H. Fitzgerald, LaDonna Finch, Ed Maroney, George Wallace and Steve Mallon. 

 

The Commission entered into a Closed Meeting at 8:36 a.m. and reconvened in Open meeting at 9:15 a.m. Upon reconvening, it was

 

 

RESOLVED, that to the best of the Commission’s knowledge, only public business matters lawfully exempt from open meeting requirements, and only such public business matters as were identified in the motion by which the Closed Meeting was convened, were heard, discussed or considered in Closed Meeting.

 

Voting yes were:     

 

Herbert H. Bateman, Jr., Aubrey Fitzgerald, LaDonna Finch, Ed Maroney, George Wallace and Steve Mallon. 

 

ADJOURNED

There being no further business, the meeting was adjourned at 9:17 a.m.                    

 

NEXT MEETING

The next meeting of the Peninsula Airport Commission will be held on Thursday, May  24, 2012 at 8:00 a.m. in the Airport Commission Room.