board of trustees president/ceo andy wirth, vice chair ... boar… · rick murdock, secretary dean...

BOARD OF TRUSTEES PRESIDENT/CEO Nat Carasali, Chair Marily M. Mora, A.A.E. Andy Wirth, Vice Chair EXECUTIVE VICE-PRESIDENT/COO Rick Murdock, Secretary Dean E. Schultz, A.A.E. Dr. Kosta Arger, Treasurer GENERAL COUNSEL Bill Eck Ann Morgan, Fennemore Craig Jerry Hall CLERK OF THE BOARD Steve Katzmann Claire Johnson Bob Larkin Adam Mayberry

RENO-TAHOE AIRPORT AUTHORITY MEETING OF THE BOARD OF TRUSTEES

May 21, 2015 9:00 a.m.

Board Room, Administrative Offices Second Floor, Main Terminal Building

Reno-Tahoe International Airport Reno, Nevada

Items V, VI, VII, X, XI and XIV 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 – April 9, 2015 Board Meeting Minutes VI. APPROVAL OF AGENDA

VII. PUBLIC HEARING, DISCUSSION & ADOPTION OF FISCAL YEAR 2015-2016 BUDGET

A. #15(05)-15 Adoption of the Reno-Tahoe Airport Authority Fiscal Year 2015-2016 Budget

VIII. ITEMS FOR BOARD INFORMATION AND DISCUSSION

Board Agenda May 21, 2015 Board Meeting of 3

A. Presentation

1. Nevada Legislative Status Update

IX. 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 G. Business Advisory Council H. The Chamber Reno Sparks Northern Nevada I. Reno-Tahoe International Airport Users Committee

X. CONSENT ITEMS FOR BOARD ACTION

A. None.

XI. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION

A. #15(05)-16 Adoption of Resolution No. 525: A Resolution Amending Resolution No.

519, a Master Fee Resolution Setting Forth Airport Rates and Charges for Fiscal Year 2015-2016 Pursuant to the Adopted Reno-Tahoe Airport Authority Fiscal Year 2015-2016 Annual Budget

B. #15(05)-17 Authorization for the President/CEO to Complete Negotiations and Execute an

Airline-Airport Use and Lease Agreement for a Term of Five Years, With an Option of an Additional Five Year Extension, With Alaska Airlines, American Airlines, Delta Air Lines, Federal Express Corporation, Southwest Airlines, United Airlines, and UPS Worldwide

C. #15(09)-18 Authorization for the President/CEO to Accept a Pending Airport Improvements

Program (AIP) Grant Offer and Award a Construction Contract for the Taxiway “C” Reconstruction Project at Reno-Tahoe International Airport with Granite Construction Company, in the Amount of $8,308,308

D. #15(05)-19 Authorization for the President/CEO to Execute Amendment No. 1 (Taxiway “C”

Reconstruction Project – Reno Airport, and Taxiway “C” Reconstruction and Edge Lighting System Installation – Stead Airport) to the Professional Services Agreement for 2015 Annual Program Management and Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $827,230, for a Total of $873,230

E. #15(05)-20 Authorization for the President/CEO to Accept a Pending Airport Improvement

Program (AIP) Grant Offer and Award Change Order No. 1 to the Construction Contract for the Taxiway “C” Reconstruction and Edge Lighting System

Board Agenda May 21, 2015 Board Meeting of 3

Installation Project at Reno-Stead Airport with Granite Construction Company, in the Amount of $1,593,655

F. #15(05)-21 Authorization for the President/CEO to Negotiate Final Terms and Execute a 30-

Year Land Lease with Two 10-Year Options to Extend with Longley Corners LLC for 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

G. #15(05)-22 Review and Possible Action on Recommended Performance Criteria and Goals for Reno-Tahoe Airport Authority President/CEO, Marily Mora, for FY 2015-16, as well as Recommendation for Extension of Contract Term

XII. ITEMS FOR BOARD INFORMATION AND DISCUSSION

A. Board Meeting Schedule 1. June 16, 2015 9:00 am Finance & Business Development Committee Meeting 2. June 16, 2015 10:00 am Planning & Construction Committee Meeting 3. June 18, 2015 9:00 am Board of Trustees Meeting 4. July 7, 2015 9:00 am Finance & Business Development Committee Meeting 5. July 7, 2015 10:00 am Planning & Construction Committee Meeting 6. July 9, 2015 9:00 am Board of Trustees Meeting

B. President/CEO’s Report

C. General Board comments, questions, and items for future Board meetings

XIII. PUBLIC COMMENT, if any – Limited to three minutes per person XIV. 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 April 9, 2015

9:00 a.m.

MEMBERS PRESENT ALSO PRESENT Nat Carasali, Chair Marily M. Mora, A.A.E. Andy Wirth, Vice Chair President/CEO Dr. Kosta Arger, Treasurer Dean Schultz, A.A.E. Rick Murdock, Secretary Executive Vice-President/COO Bill Eck Ann Morgan Jerry Hall General Counsel Bob Larkin Claire Johnson Clerk of the Board MEMBERS ABSENT/EXCUSED Steve Katzmann Adam Mayberry The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. Chair Nat Carasali called the meeting to order. The Pledge of Allegiance was recited. Roll was called. Chair Carasali welcomed City of Reno Councilwoman and Liaison to the Board, Neoma Jardon as being present in the audience. III. PRESENTATIONS AND AWARDS

A. Employee, Tenant and Special Recognitions Marily Mora, President/CEO, introduced three staff members from Airport Economic Development (AED), Tina Iftiger, Vice President, Laurie Weeks, Sr. Manager of Properties, and Lois O’Neill, Property Specialist II. Airport Revenue News, a well-respected publication in the airport industry, recently recognized the top performers in the airport and concession industries during its 2015 Conference in San Diego. Ms. Mora announced that the Airport was nominated in three different categories, and received awards in two, the Airport with the Best Amenities and Airport with the Best Concession Program Design. Ms. Mora stated that these rewards are a reflection of the Gateway Project completed in 2013, which consolidated the checkpoints and moved more concessions to post-security on the 2nd floor of the terminal, and is a tremendous recognition within the industry. Ms. Mora invited Ms. Iftiger to the podium. Ms. Iftiger reiterated that the Gateway Project transformed the concessions program in that prior to the project completion a majority of the Airport’s concessions were located

Meeting of the Board of Trustees April 9, 2015 Brief of Minutes Page 2 of 10

pre-security, and now 70% are post-security. Ms. Iftiger stated that not only did the Airport make a major investment, but so did the RTAA’s master concessionaires. SSP America, the food concessionaire, made an initial investment of $4M, and over a ten-year term will invest over $5M. Paradies, the retail concessionaire, invested approximately $1.25M, and over a 5-year term their investment will reach nearly $1.5M. Ms. Iftiger ended by thanking the Trustees for the special recognition. Next, Ms. Mora announced that the RTAA Accounting team was recently awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). She indicated this is the 28th year in a row that the RTAA has received this award. Ms. Mora invited Rick Gorman, Chief Financial Officer, to the podium along with the Accounting team. Mr. Gorman began by stating it is his distinct pleasure to achieve the award and that it really reflects the day-to-day hard work by the Accounting department led by Leah Williams, Manager of Accounting. With one of the Guiding Principles being Financial Integrity and transparency, this award demonstrates the Authority’s commitment to that principle. Mr. Gorman congratulated Ms. Williams and her staff, and presented them with the award. Chair Carasali thanked both the AED staff and the Accounting staff, and stated that these two awards of recognition are examples of the quality service provided to the industry, and are a reflection of the great team we have at the RTAA.

B. Introduction of New, Promoted and Retired Employees Dean Schultz, Executive Vice President/COO, introduced three employees who recently joined the Reno-Tahoe Airport Authority - Lacy Glodowski, Administrative Assistant II in the Finance and Administration Department, Soraya Espinosa, Scheduler/Planner in the Building Maintenance and Services Department, and James Keller, Facilities Supervisor in the Building Maintenance and Services Department. Next, Mr. Schultz congratulated two employees on their recent promotions – Jeff Chapel was promoted to Airfield Equipment Mechanic on March 9, 2015, and Ross Foote was promoted to Airfield Technician on April 6, 2015.

C. Tenant Communication

None.

IV. PUBLIC COMMENT (limited to 3 minutes) John Howitt, a member of the Reno-Tahoe Aviation Group (RTAG) and a tenant at GA West, spoke on the Taxiway “C” Reconstruction Project at Reno-Tahoe International Airport (RTIA). Mr. Howitt asked the Board to delay consideration of the Taxiway C improvement project from next month to the June Board meeting. He stated his general agreement with the project, but feels that more time would allow the pilot community to work with the RTAA staff to resolve their concerns with the vehicle service road. The issue with the service road is that it impacts and removes GA infrastructure that is already limited in that area. The wrong decision on the service road may end up impacting future operations and


limiting general aviation. Mr. Howitt asked the Chairman for a delay in considering this project until June. This could facilitate an agreement between the two parties, the RTAA and the pilot community, and avoid being faced with a situation whereby the Airport is asking for grant monies from the Aviation Trust Fund while the pilots are opposing the project before the Federal Aviation Administration (FAA), all over a small but important issue of the service road being one lane instead of two lanes for a short distance and using the same practice that is in place on the commercial side. Mr. Howitt feels that essentially we are close to resolving the issue, and stated he is just asking for more time. Robert Meurer, President of the Reno-Tahoe Aviation Group (RTAG), spoke on the Taxiway “C” Reconstruction Project. Mr. Meurer began his comments by stating that RTAG fully supports the Taxiway “C” reconstruction project as it is currently designed. However, RTAG strenuously objects to the relocation of the vehicle service road as planned. It will result in a reduction of aircraft parking area on the GA East Ramp. At the April 7, 2015 Planning and Construction Committee meeting, RTAG presented a plan offering alternative solutions for the service road that preserve the present ramp space. RTAA Engineering staff stated that FAA requirements dictate that the new service road must be constructed as planned. An additional meeting was held on April 8, 2015, at which time RTAG requested and the RTAA Engineering staff agreed, to contact the FAA for acceptance of any of the three possible solutions offered by RTAG to eliminate the loss of aircraft parking space due to the relocation of the vehicle service road. RTAG is now requesting that the Board instruct Planning & Construction Committee Chair Jerry Hall to not place the Taxiway “C” Reconstruction Project on the committee agenda until the RTAA Engineering Department has responded to the objections raised by RTAG and other general aviation users concerning the reduction of aircraft parking on the east ramp. Mr. Meurer stated that a public workshop is being requested to be held with RTAG membership before any action is taken on this issue. Chair Carasali thanked Mr. Meurer and indicated that the comments will be taken under consideration as the Board agendas for the May meetings are developed. Chair Carasali asked that the two documents given to the Board by Mr. Meurer be made part of the public record. The aforementioned documents are a letter from Robert Meurer, President of RTAG and a letter from James E. Riley, President of R&E Fasteners.

V. APPROVAL OF MINUTES On motion by Trustee Eck, seconded by Trustee Wirth, which motion duly carried by unanimous vote, the Board approved the minutes from the Board of Trustees meeting of March 12, 2015.

VI. APPROVAL OF AGENDA

On motion by Trustee Wirth, seconded by Trustee Murdock, which motion duly carried by unanimous vote, the Board approved the April 9, 2015 Board of Trustees meeting agenda.

VII. ITEMS FOR BOARD INFORMATION AND DISCUSSION (Part 1)

A. Presentations


1. Chair Carasali introduced Kathleen Conaboy of McDonald-Carano-Wilson, LLP to provide an update on the Nevada legislative session and bills that are of specific interest to the Reno-Tahoe Airport Authority (RTAA). Ms. Conaboy stated that Friday, April 10th is the day to get bills out of their committee of origin. She is watching closely and waiting to see what bills make it as there is a lengthy list being tracked for the RTAA. Ms. Conaboy began by stating that overall the big issue on both sides of the legislative building is the tax debate. The Governor’s proposal AB 252, which would institute a business license fee, was heard in Senate Revenue and passed out of that committee on a party line vote. It is currently sitting on the Chief Clerk’s desk in the Senate and requires a two-thirds vote. AB 464 was introduced this week, and was heard on April 7th in Assembly Taxation. It is sponsored by Taxation Committee Chair Derek Armstrong who is a new legislator and Paula Anderson, Chair of Assembly Ways and Means Committee and majority leader on the Assembly side. This bill focuses more on the Modified Business Tax (MBT) and proponents suggest that more money can be raised with AB 464 than the Governor’s tax plan. No one is debating whether there will be a tax increase; what’s being debated is what model will be used and how much revenue needs to be raised. The date to get bills out of there house of origin is April 21st. Next, Ms. Conaboy discussed each of the bills that are of specific interest to the RTAA. SB 93, the aviation tax abatement bill, passed unanimously off the Senate floor this week. The companion bill AB 161, was amended to exactly mirror SB 93 in terms of the abatement period. SB 125, a bill to help fund air service development, has been declared exempt which means it will now go into Senate Finance. It fully accommodates RTAA’s concerns about small hub and non-hub airports. The bill has a $2M fiscal note attached to it and therefore will sit until early May when the Economic Forum meets and makes its revenue projections, and until after all the tax bills are passed to see if there is enough money to fund it. There are three major bills which have to do with concealed carry and open carry of guns. There was a Legislative Counsel Bureau (LCB) opinion issued this week about open carry which is in the Constitution, but the Legislature has the power to make exceptions. It is assumed based on conversations with the Senate Judiciary Chair Greg Brower, that these bills will be handled appropriately and address the RTAA’s concerns on the Senate side. The tourism bill, SB 312 is the $1.00 to $3.00 surcharge that will create a new fund for the Reno-Sparks Convention and Visitors Authority (RSCVA) to manage the advertising, publicizing and promoting of local recreational facilities. The companion bill is SB 480 which has to do with modifying the RSCVA membership. Chair Carasali weighed in on these two bills and explained the premise behind each of them. In summary, the bills are aimed at streamlining numbers and membership to be


in alignment with the strategic vision of the entity. Trustee Arger mentioned that the RSCVA voted to go along with the membership reduction. Chair Carasali indicated that SB 480 has been endorsed by the City of Reno, Washoe County, the Chamber of Commerce and the Nevada Resort Association (NRA), and has a strong chance of passing. The next topic Ms. Conaboy discussed is the transportation networks, otherwise known as Uber bills. Nevada’s commercial airports, McCarran and Reno-Tahoe, are agnostic as to the types of transportation networks available. Both Airports’ leadership worked together to present a consensus amendment that assures all transportation providers are treated similarly with regard to insurance requirements and fees on the airport. Those bills are currently in work session. Ms. Conaboy indicated there is a lot about purchasing requirements this session. There is a bill that if passed would disallow government entities from using their tax exempt status to purchase materials for public works projects. This was heard in Government Affairs on March 25, and is not scheduled for another hearing which may mean it will be rolled into something else. The issue is with donor and recipient counties regarding the consolidated tax, and the concern that if a county uses its tax exempt status to buy goods without paying sales tax and then they are a recipient county through the C-tax distribution, that this is not fair. There has been much discussion regarding this but no further movement as of yet. Joyce Humphry, RTAA’s Manager of Purchasing and Materials Management, testified in opposition of AB 353. This bill would remove local government ability to waive solicitation requirements for contracts in excess of $50,000. The RTAA’s position is that the solicitation waiver process is a valid way to do public purchasing and is used across the country by local governments and the federal government as well. Ms. Conaboy stated there are three bills relative to body cameras on public safety officers, and the bills have a huge fiscal note associated to them. Metro police, Washoe County Sheriff and other public safety entities testified against the bills simply because of the fiscal note. The public safety testimony by those entities essentially opposes certain technologies prescribed in statute due to the associated costs and also because technology emerges and changes so quickly. There was a collective bargaining bill about posting the contents of an agreement a certain number of days before a vote on it. It started out as 10 and is now down to 3 days. Lastly, there was a piece of legislation on unmanned aerial systems (UAS), AB 239, which was heard in late March. It was then amended and passed out of Assembly Judiciary on April 8. Thank you to Ms. Iftiger for her collaboration with the Governor’s Office of Economic Development (GOED) who led the way on amending the bill because of their handling of the FAA designation in the State. It worked very


effectively to have the RTAA as part of the GOED process of amending the bill. Steve Hill of GOED went to the table in full support of the amended bill and the final language is forthcoming. Trustee Arger asked a question regarding the abatement bill and whether the term is 10-years or 20-years. Ms. Conaboy responded that the term is 20-years on both bills.

Prior to moving on to the next item, Chair Carasali asked Board Liaison Ms. Jardon if she had any items to share with the Trustees. Ms. Jardon commented that after the Governor’s announcement regarding water conservation, she asked that the Airport like all jurisdictions look at their water usage and means of conserving. Ms. Jardon also indicated that the City is watching all the bills that are moving rapidly through the Legislature and weighing in where it is most valuable to do so.

VIII. COMMITTEE / LIAISON REPORTS

Committee / Liaison reports were given by:

A. Finance and Business Development Committee – Trustee Kosta Arger B. Planning and Construction Committee – Trustee Jerry Hall C. Airport Noise Advisory Panel – Trustee Bob Larkin D. Community Outreach Committee (COC) – Trustee Rick Murdock E. Stead Liaison – Dean Schultz (RTAA) F. RSCVA Board – Trustee Kosta Arger G. Business Advisory Council – Trustee Rick Murdock H. The Chamber Reno Sparks Northern NV – Marily Mora (RTAA) I. Reno-Tahoe International Airport Users Committee – Trustee Bill Eck

IX. CONSENT ITEMS FOR BOARD ACTION

A. #15(04)-13 Authorization for the President/CEO to Approve Change Order No. 2 to

the Construction Contract for the Federal Inspection Services (Phase 1) Project, with Clark & Sullivan Construction in the Amount of $194,632.31, for a Total of $2,838,614.59 and Authorize the President/CEO, or her Designee, to Execute the Amended Agreement

On motion by Trustee Hall, seconded by Trustee Wirth, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(04)-13 as follows: Authorized the President/CEO to Approve Change Order No. 2 to the Construction Contract for the Federal Inspection Services (Phase 1) Project, with Clark & Sullivan Construction in the Amount of $194,632.31, for a Total of $2,838,614.59 and Authorize the President/CEO, or her Designee, to Execute the Amended Agreement

X. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION A. #15(04)-14 Authorization for the President/CEO to Negotiate Final Terms and

Execute a First Amendment to the Non-Exclusive Fixed Base Operator Lease


Agreement Between Mercury Air Center-Reno, LLC dba Atlantic Aviation and the Reno-Tahoe Airport Authority for a 15-Year Term Extension, for a Total Contract Term of 50 Years, to Reconstruct the Aircraft Apron and to Construct a New Fuel Storage Facility at the Reno-Tahoe International Airport

On motion by Trustee Arger, seconded by Trustee Larkin, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(04)-14 as follows: Approved the Extension to the Non-Exclusive Fixed Base Operator (FBO) Lease Agreement Term as Presented and Authorized the President/CEO to Complete Negotiations and Execute a First Amendment to the Non-exclusive FBO Lease Agreement Between Mercury Air Center-Reno, LLC dba Atlantic Aviation and the Reno-Tahoe Airport Authority for a 15-Year Term Extension, for a Total Contract Term of 50 Years, Effective February 1, 2013 Through January 31, 2063, to Reconstruct Approximately 705,800 Square Feet of Aircraft Apron and to Construct a New 102,000 Gallon Fuel Storage Facility on Atlantic’s Existing Premises at the Reno-Tahoe International Airport

XI. ITEMS FOR BOARD INFORMATION AND DISCUSSION (Part 2)

A. Presentations 1. Ms. Mora introduced Tina Iftiger, RTAA Vice President of Airport Economic

Development and Stacie Huggins, Economic Development Manager, to present an update on RNO and RTS Land Development.

Ms. Iftiger began by saying that the last update on Airport Land Development was provided in December of 2014. This update will be structured in two phases beginning with what is currently in process followed by future activities. The Reno-Stead Airport process is going well following the Board’s authorization at the March 2015 meeting for Dermody Properties (DP) to represent the RTAA and complete Phase 2 and Phase 3 of the Request for Qualifications (RFQ). DP introduced a potential major financial partner to the RTAA and has accompanied staff in looking at UAS, advanced manufacturing, and high tech companies. Currently, stakeholder engagement efforts are underway with the community to gain input from various entities including RTS tenants, RARA, North Valleys Citizen Advisory Board and Silver Knolls Property Owners Association. Recently, the City of Reno adopted and reinstituted the neighborhood advisory boards and as soon as that structure is in place, staff will be meeting with them as well. Staff anticipates that the earliest a project would come back to the Board for consideration is during the 3rd quarter of 2015. It is expected that the Phase 2 process will continue through June/July and that Phase 3 business concepts and a preliminary plan will be presented in the July/August timeframe. Ms. Iftiger indicated that the timeline will be a fluid, moving target depending on what is found during discovery. Next, Ms. Iftiger discussed the Home Gardens project which is the parcel of land south of the Airport. From an advertised Request for Proposal (RFP), Dermody


identified a Class A logistics company as a possible tenant for a ‘build-to-suit” facility that could possibly optimize the land utilization and the Airport’s revenue potential, as well as honor the business terms already approved by the Board. That RFP process is anticipated to be completed by July 2015 and at that time the RTAA will find out if the Home Gardens site is selected. If the site is not selected, DP is already taking steps for the possible need to reassess the tenant mix, site design, underwriting, and business terms. This could potentially affect the business terms already approved by the Board and should that happen, staff will bring the project back to the Board for reconsideration. There is 23 acres of land available for expansion at Mill & Rock, which is to the north and south of where Dassault Aviation is currently located. Predicated on the passage of SB 93 or AB 161, Dassault Aviation will look to expand somewhat to the north to allow more depth of apron for the circulation of their aircraft and to expand their maintenance repair overhaul program, which is a primary target of the tax abatement bill. They would also potentially expand to the south to relocate their other businesses from Idaho and California. The tax abatement is expected to be in place before June and the President of Dassault has not backed down on his commitment to expansion, therefore RTAA staff looks forward to moving ahead on this property. At this point, Ms. Iftiger handed off the presentation to Ms. Huggins who began by updating the Board on the Home Gardens North and Airport South properties. These properties were affected by the adjustment to the Runway Protection Zone (RPZ) mandated by the Federal Aviation Administration (FAA). The Airport South property is now completely out of the RPZ. The Home Gardens North property was impacted more by the RPZ, and is also challenged by the One Engine Inoperative (OEI) requirement limiting building heights. As a result of the RPZ and OEI impacts, Conor Commercial decided to back out of considering the Home Gardens North property. The Airport South property is being looked at by Longley Corners LLC who is considering building an RV and boat storage facility on that property. It is staff’s hope that once final engineering considerations are completed by Longley Corners, the RTAA will seek approval from the Board in May or June to move forward with the development. Ms. Huggins next discussed the undeveloped parcels of Airport owned land. First, the southwest quadrant/air cargo property consists of 98 acres and is programmed for air cargo development. Pending the results of the Air Cargo Study which is currently in progress, staff hopes that information learned from that will help identify the right market to target for an RFQ. Staff anticipates releasing an RFQ as part of the FY 2015-2016 Work Plan. Next, Ms. Huggins discussed the Brookside Airport East property (approximately 50 acres) and the northeast quadrant located at Rock and Longley Lane (approximately 15 acres). Both of these properties are designated for general aviation use and had been slated for RFQ pending the outcome of the T-Hangar Management RFQ and market demand for general aviation development.


Ms. Huggins provided an update on the Gateway Center, also known as the Hyatt property. Three inquiries have been received since summer 2014 and as a result an appraisal was conducted. Unfortunately, no serious interest developed out of the inquiries and staff feels this was driven by the fact that the retail market is not as strong as the commercial and office markets. Therefore, an RFQ is being held off pending improvement in the retail market. However, Ms. Huggins reiterated the fact that all of these properties are advertised on the RTAA website and if a Letter of Intent (LOI) was submitted by an interested party, it would certainly be entertained. In closing, Ms. Iftiger stated that the good news is four of the nine RTIA properties are in process of becoming potential new revenue streams in the near future. She feels good progress is being made, as these developments take time and depend on market demand. Trustee Arger commented on the recent FAA announcements regarding criteria surrounding unmanned aircraft vehicles (UAVs), including that they have to be no less than five miles away from a designated airport. He asked what impact this requirement will have on UAV development at Stead. Ms. Iftiger responded that this requirement affects the testing side of UAVs and staff is coming up with a migration plan or a road map on how the RTAA will leverage our unique asset. Because the whole State of Nevada is a test site, there are plenty of areas to test UAVs that are not near an airport. Staff is working on a variety of different strategies to create a better product both on the testing side and the land development side with the goal of drawing entities from California to invest in Nevada.

B. Board Meeting Schedule Chair Carasali referred to the schedule of upcoming meetings.

1. May 19, 2015 9:00 a.m. Finance & Business Development Committee Meeting 2. May 19, 2015 10:00 a.m. Planning & Construction Committee Meeting 3. May 21, 2015 9:00 a.m. Board of Trustees Meeting 4. June 16, 2015 9:00 am Finance & Business Development Committee Meeting 5. June 16, 2015 10:00 am Planning & Construction Committee Meeting 6. June 18, 2015 9:00 am Board of Trustees Meeting

C. President/CEO’s Report

Ms. Mora referred the Trustees to the written President/CEO’s Report included in their board binders.

D. General Board Comments, Questions, and Items for Future Board Meetings Trustee Murdock reminded everyone that the Women’s Bowling Competition is starting and the Reno stadium opens for the bowlers on April 10. About 16,000 bowlers along with their friends and families will be in Reno from April through June. Chair Carasali commented on the RSVCA proposed surcharge on room tax and that an amendment was presented by the RSCVA having to do with increasing the fee from $30 to $40 per


bowler. That amendment was highly opposed by a majority of the NRA members and therefore he does not believe that it will be a part of the final bill draft.

XI. PUBLIC COMMENT None.

XII. ADJOURNMENT There being no further business, the meeting was adjourned at 10:21 am. . ____________________________________ Chair Nat Carasali ATTEST: ____________________________________ Secretary Rick Murdock *** 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: May 13, 2015 Memo: #15(05)-15A To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E, President/CEO Subject: PUBLIC HEARING FOR THE FISCAL YEAR 2015-16 BUDGET PURPOSE The purpose of this item is to conduct the required Public Hearing in order to allow for public comment on the Reno-Tahoe Airport Authority’s (RTAA) proposed Fiscal Year (FY) 2015-16 annual budget. BACKGROUND Pursuant to State law, a Public Hearing on the budget will be held the third Thursday in May. This year’s May 21st Public Hearing was noticed in the Reno Gazette-Journal on May 11, 2015. DISCUSSION The public hearing notice directs members of the public to contact the RTAA for copies of the budget documents. The Board may include the public’s comments in their direction to staff regarding changes to the budget. FISCAL IMPACT The annual budget determines the RTAA’s operating budgets, employee complement, fixed assets to be acquired, and capital projects to be constructed. The airline landing fees and rental rates are set based on formulas contained in the airline agreements. The operating budget, a portion of which is directly allocated to the airline cost centers, is a major factor in the airline rate calculation. COMMITTEE COORDINATION A budget workshop was held on April 9, 2015 and a budget update is scheduled for the Finance and Business Development Committee meeting, to be held May 19, 2015, for the Board’s input on the budget. All of the Board’s directions from the budget workshop, to date, have been incorporated in the budget document. RECOMMENDATION The Chairman open the public hearing, accept public comment on the budget, and close the public hearing when public comment on the budget is complete. MMM/to/cj


Date: May 13, 2015 Memo: #15(05)-15 To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E, President/CEO Subject: ADOPTION OF THE FISCAL YEAR 2015-16 BUDGET STAFF RECOMMENDATION Staff recommends the adoption of the proposed Fiscal Year 2015-16 Budget for the Reno-Tahoe Airport Authority. PURPOSE The purpose of this item is to adopt the Reno-Tahoe Airport Authority’s (RTAA) annual budget for the period of July 1, 2015 through June 30, 2016. This period represents the Authority’s fiscal year. This action is in support of the RTAA Guiding Principle of Financial Integrity, as identified in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND Pursuant to State law, a Public Hearing on the budget will be held May 21, 2015 at the RTAA Board of Trustees meeting. The Public Hearing was noticed in the Reno Gazette-Journal on May 11, 2015. The proposed budget and airline rates were reviewed with the Airline Airport Affairs Committee on April 22, 2015, as outlined in the airline agreement. Pursuant to State law, the Board must adopt the budget on or before June 1, 2015. DISCUSSION The changes in revenues from the budget workshop, held April 9, 2015, are as follows:

FY 2013-14 Workshop FinalFY 2013-14 FY 2015-16 FY 2014-15 Variance

Actual Budget Forecast Budget Budget

Airline fees and rentalsLanding fees $6,612,638 $7,075,852 $7,351,905 $7,423,602 $7,423,902 $300Terminal building space rental 6,873,127 7,904,400 7,839,900 7,884,000 7,967,800 83,800

TOTAL Airline fees and rentals 13,485,765 14,980,252 15,191,805 15,307,602 15,391,702 84,100

Non-Airline RevenuesOther Aircraft Fees 827,859 834,300 827,200 831,600 831,600 - Concession fees 10,301,098 10,075,100 10,368,100 10,380,100 10,380,100 - Parking and Ground Transportation 8,983,926 8,504,900 8,721,680 8,975,800 8,975,800 - Building, Hangar and Land Rent 6,409,199 6,663,000 6,697,700 6,708,100 6,719,400 11,300 Reimbursement for Services (BHS) 2,632,003 2,630,926 2,535,115 2,523,986 2,465,123 (58,864) Other operating revenues 34,596 39,300 35,600 22,900 22,900 -

29,188,680 28,747,526 29,185,395 29,442,486 29,394,923 (47,564)

Total Operating Revenue 42,674,445 43,727,778 44,377,200 44,750,088 44,786,625 36,536

Adoption of FY 2015-16 Budget #15(05)-15 May 21, 2015 Board Meeting Page 2 of 4

● Terminal rental revenues increased due to the Federal Aviation Administration (FAA) informing the RTAA on April 24, 2015 that hand held and vehicle radios of $883,400 are not eligible for Passenger Facility Charge (PFC) funding. Therefore, this critically needed equipment will be funded internally, and amortized over seven years, reducing the net revenue sharing used to lower the airline terminal rents.

RTAA staff is in the process of submitting an appeal to the FAA decision regarding

the eligibility of the radio equipment and, if successful, adjustments will be made in the FY 2015-16 mid-year analysis.

● Land rents increased due to revisions in square footage in a tenant’s lease based on

updated survey data associated with the McCarran widening project. ● Reimbursement for services decreased due to a formula correction in the calculation

of the Baggage Handling System (BHS) fee. The FY 2015-16 airline rates and charges are shown below. Operating Expenses The total FY 2015-16 Operations and Maintenance Budget request is $39,144,387. This is a 1.5% increase over the FY 2014-15 Budget and 2.1% above FY 2014-15 projected expenditures. Staff is proposing no changes in the proposed operating expense budget presented at the April 9, 2015 budget workshop.

Debt Service Total combined debt service for FY 2015-16, after the application of PFC’s, is budgeted to be $3,663,420, a decrease of $121,578 or 3.2% below the FY 2014-15 Budget. The FY 2015-16 Budget reflects the RTAA soliciting proposals from qualified banking institutions to provide a direct loan/private-purchase of debt for the purpose of refunding the 2005 Bonds. The proposed budget anticipates that the 2015 Direct Loan is projected to close no later than September 30, 2015 with an anticipated annual savings of $184,000 in FY 2015-16 and a combined savings of $3.2 million over the next eleven years.

FY 2014-15 Workshop FinalFY 2013-14 FY 2015-16 FY 2015-16 Variance

Actual Budget Forecast Budget Budget

Personnel Services $24,301,594 $25,771,165 $25,496,524 $26,286,995 $26,286,995 -$ Utilities & Communications 2,774,328 2,862,700 2,885,317 $2,919,063 2,919,063 - Purchased Services 4,760,784 5,627,235 5,607,861 $5,592,574 5,592,574 - Materials & Supplies 1,746,828 1,905,619 1,884,327 $1,909,125 1,909,125 - Administrative Expenses 2,563,199 2,403,054 2,457,220 $2,436,631 2,436,631 -

Total 36,146,733$ 38,569,773$ 38,331,249$ 39,144,387$ 39,144,387$ -$

Increase in FY 2015-16 vs Prior Year Budget 574,614$ Percent Increase 1.5%

Adoption of FY 2015-16 Budget #15(05)-15 May 21, 2015 Board Meeting Page 3 of 4 Property, Plant and Equipment (PP&E) The total PP&E request for FY 2015-16 is $328,314. This is an increase of $70,664, or 27.4% from the FY 2014-15 PP&E budget amount of $257,650. Capital Projects The FY 2015-16 Capital Project requests for Reno-Tahoe International and Reno-Stead Airports of $3.276 million are funded by Authority internally generated and other local funds (primarily the general purpose, special fund and rental car customer facility charges (CFC)). This budget request is a decrease of approximately $819,000 from the FY 2014-15 Budget. Capital Projects are primarily to provide new infrastructure or maintain the existing airport infrastructure, such as pavement maintenance and facilities used by rental cars. FISCAL IMPACT The annual budget determines the RTAA departments’ operating budgets, employee complement, property/plant/equipment to be acquired, capital projects to be constructed, and sets the airlines’ landing fees and rental rates. The total operating revenues and airline rates and charges modestly differ from the amounts previously presented at the budget workshop on April 9, 2015 due to revisions based on subsequent review and alteration by staff. The most significant is the average terminal rental rate and the estimated increase in airline cost per enplaned passenger to $8.39, an increase of $0.04 as compared to the estimate provided at the budget workshop. The following table presents a financial summary and key ratios proposed in the FY 2015-16 Budget:

Budget Category2014-15 Budget

Workshop FY 2015-16

Budget

Final FY2015-16

Budget

Budget to Budget Change

% Change

Airline Revenue 14,980,252$ 15,307,602$ 15,391,702$ 411,450$ 2.7%Non-Airline Revenue 28,747,526 29,442,486 29,394,923 647,397 2.3%Total Operating Revenue 43,727,778$ 44,750,088$ 44,786,625$ 1,058,847$ 2.4%

Operating Expenses 38,569,773$ 39,144,387$ 39,144,387$ 574,614$ 1.5%Debt Service net of PFCs 3,784,998$ 3,663,420$ 3,663,420$ (121,578)$ -3.2%Debt Service Coverage Ratio 1.48X 1.69X 1.68X

Landed Weight (000's) 2,500,291 2,467,282 2,467,282 (33,009) -1.3%Enplaned Passengers 1,667,290 1,669,027 1,669,027 1,737 0.1%

Signatory Landing Fee 2.93$ 3.09$ 3.09$ 0.16$ 5.5%Terminal Rental Rate 62.45$ 62.39$ 63.05$ 0.60$ 1.0%Net Revenue Available for Sharing 178,700$ 565,600$ 445,900$ 267,200 149.5%Cost per Enplanement 8.15$ 8.34$ 8.39$ 0.24$ 2.9%

Adoption of FY 2015-16 Budget #15(05)-15 May 21, 2015 Board Meeting Page 4 of 4 COMMITTEE COORDINATION A budget workshop was held on April 9, 2015 and a budget update is scheduled for the Finance and Business Development Committee meeting, to be held May 19, 2015, for the Board’s input on the budget. RECOMMENDATION It is hereby recommended the Board adopt the following motion: “It is hereby moved that the Reno-Tahoe Airport Authority Board of Trustees adopts the Fiscal Year 2015-16 annual budget.” MMM/to/cj


Date: May 13, 2015 Memo: #15(05)-16 To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: ADOPTION OF RESOLUTION NO. 525: A RESOLUTION AMENDING

RESOLUTION NO. 519, A MASTER FEE RESOLUTION SETTING FORTH AIRPORT RATES AND CHARGES FOR FISCAL YEAR 2015-2016 PURSUANT TO THE RENO-TAHOE AIRPORT AUTHORITY FISCAL YEAR 2015-2016 ANNUAL BUDGET

STAFF RECOMMENDATION Staff recommends Board adoption of Resolution No. 525, a Resolution amending Resolution No. 519, a Master Fee Resolution setting forth rates and charges for FY 2015-2016 pursuant to the Reno-Tahoe Airport Authority FY 2015-2016 Budget. PURPOSE This action is to establish and maintain a master list of fees and charges that the Board approves on an annual basis, and is in support of the Reno-Tahoe Airport Authority (RTAA) Guiding Principle of Financial Integrity as identified in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND The Airport Act, Chapter 474, states that the Reno-Tahoe Airport Authority (RTAA) may assess and collect fees, rentals, rates and other charges. The RTAA has numerous resolutions, policies and agreements that set forth rates and fees for the various operators at Reno-Tahoe International Airport (RTIA) and Reno-Stead Airport (RTS). The purpose of the Master Fee Resolution is to provide the Board, staff and users of the RTIA one document that details the majority of rates, charges and fees in one place for easy reference. DISCUSSION The Resolution is updated on an annual basis to coincide with the budget process and may be amended during the fiscal year when there are changes to the rates and charges. The attached Resolution contains a number of rates and charges in place as a result of the budget for FY 2015-2016. The following changes have been incorporated in this year’s resolution: • Landing Fees, Terminal Building Rents and Baggage Handling System Charge

changes, which reflect cost center recovery of expenditures included in the FY 2015-16 Budget. The fee structure and the method of calculating the airline rates and

Master Fee Resolution FY 2015-2016 #15(05)-16 May 21, 2015 Board Meeting Page 2 of 3

charges are outlined in the new airline agreement proposed to be effective July 1, 2015.

• Ramp Overnight (RON) Fees – The RON fee, which is assessed for aircraft ramp parking for a period of more than three (3) hours at locations other than assigned gates, is being increased from $60 to $70.

• Customs and Border Protection Facility Use Charge – This is a new fee designed to

partially recover the costs associated with the international passenger operations at RTIA. This fee will not apply to the existing twice weekly Volaris flights until after December 19, 2016. It will however apply to any new international air service upon adoption of the Master Fee Resolution No. 525.

• Gate and Ticket Counter Use Fee – To facilitate air service by small commuter

airlines, a per passenger charge has been added to maintain consistent per passenger costs for all airlines.

• Ticket Counter Use Charge – Two separate fees are being introduced differentiating

the ticket counter space by size (small with eight or less positions, and large with over eight positions).

• Disposal Fees – These fees are being reduced from $7,720 to $5,020 per month due to

lower costs associated with providing this service.

• Reno T-Hangar and Box Hangar Rates – No increase in hangar rental rates due to the no change in Consumer Price Index (CPI) for the period of March 2014 to March 2015.

• T–Hangar Storage and Office Space Rent – These rates have been added due to the

availability of non-aircraft storage and office areas being available for lease at the T-Hangar complex at General Aviation West.

• No change is proposed in vehicle parking rates.

• No change is proposed in ground transportation rates. Currently, ride sharing

companies such as Uber and Lyft are not permitted to operate in Nevada. If proposed legislation is adopted permitting these companies to operate in the State, staff will submit updated policies and fees associated with this new type of service.

• Employee ID Badging – Due to the failure of sponsoring companies to collect and

return employee badges upon an employee leaving employment, the RTAA has faced significant costs associated with wholesale rebadging required under Transportation Security Administation (TSA) requirements if unaccounted for badges exceed certain limits. To encourage better compliance, the RTAA is proposing a $150 fee to a sponsoring company for each unreturned badge.

Master Fee Resolution FY 2015-2016 #15(05)-16 May 21, 2015 Board Meeting Page 3 of 3 • Employee Finger Printing – Due to a new TSA requirement that fingerprints must be

submitted upon the renewal of a security ID badge, a new fee of $25.00 per employee for renewal prints has been added this year. The prior year’s resolution included only the $75.00 fee per employee charged at the time of the original issuance.

• Reno-Stead Airport – Implementation of a transient aircraft ramp parking fee for aircraft with landed weight of 12,500 lbs. or greater.

• Reno-Stead Airport – Establishment of an aircraft tie-down fee if needed to facilitate general aviation aircraft.

FISCAL IMPACT The fiscal impact relating to Resolution No. 525 is part of the presentation for the FY 2015-2016 budget approval and various Resolutions. COMMITTEE COORDINATION This item is scheduled to be presented at the May 19, 2015 Finance and Business Development Committee meeting. RECOMMENDATION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board adopts Resolution No. 525: A Resolution amending Resolution No. 519, a Master Fee Resolution setting forth airport rates and charges for FY 2015-2016 pursuant to the FY 2015-2016 annual budget.” MMM/to/cj

RESOLUTION NO. 525

A RESOLUTION AMENDING RESOLUTION NO. 519, A MASTER FEE RESOLUTION SETTING FORTH AIRPORT RATES AND CHARGES FOR FY 2015-2016 PURSUANT TO THE ADOPTED FY 2015-2016 ANNUAL BUDGET

(Note: Changes are in bold)

WHEREAS, Section 10 (10) of SB 198, Chapter 474, Statutes of Nevada 1977 provides that the Reno-Tahoe Airport Authority may charge fees, rentals, rates and other charges: NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the Reno-Tahoe Airport Authority that Resolution No. 519 is amended to set forth a list of master fees for Fiscal Year 2015-2016. Rates and charges that are being changed are noted in bold with the previous amount in red.

FEES/RENTALS/RATES AND

OTHER CHARGES AMOUNT

CORRESPONDING RESOLUTION,

POLICY OR AGREEMENT

LANDING FEE CHARGES Signatory Airlines $3.09 per 1,000 lbs.

($2.93)

Resolution No. 338 Airline-Airport Use and Lease Agreement

Non Signatory Airlines $3.09 per 1,000 lbs. ($2.93)

Resolution No. 338 Airline Operating Agreement

Ramp Overnight Fee (RON’s) – Signatory

$70.00 per day over 3 hours ($60.00)

Resolution No. 338 Current Master Fee Resolution

Ramp Overnight Fee (RON’s) – Non-Signatory

$70.00 per day over 3 hours ($60.00)

Resolution No. 338 Current Master Fee Resolution

Minimum Charge $10.00 per landing

Resolution No. 338

Resolution No. 525 - Master Fees Fiscal Year 2015-16 Page 2 of 12




POLICY OR AGREEMENT

SIGNATORY AIRLINE TERMINAL RENTS Ticket Counter $126.11 PSFPA*

($124.84) *Per square foot per annum

Airline-Airport Use and Lease Agreement; Rental Car Operating Agreement

Office Space $100.89 PSFPA ($99.87)

Airline-Airport Use and Lease Agreement; Rental Car Operating Agreement

Holdroom Space $100.89 PSFPA ($99.87)

Airline-Airport Use and Lease Agreement

Unenclosed Areas (Outside Storage)

$15.76 PSFPA ($15.61)


Baggage Service Office Space

$75.67 PSFPA ($74.90)


Operations Space $50.44 PSFPA ($49.94)


Common Use Baggage Makeup and Handling Space

$50.44 PSFPA ($49.94)


Common Use Baggage Claim

$75.67 PSFPA ($74.90)


Joint Use Area Tug Drives $31.53 PSFPA ($31.21)


OTHER AIRLINE CHARGES Baggage Handling System (BHS) Charge

$1.33 ($1.42) per bag processed through the Baggage Handling System


Disposal Fees $5,020 ($7,720) monthly Airline-Airport Use and Lease Agreement, 100% apportioned among airline users based on enplaned passengers

Customs and Border Protection Facility Use Charge

$4.50 per deplaned international passenger

Current Master Fee Resolution

Incentives for scheduled passenger air and air cargo carriers to increase air service to Reno

Policy guidelines for waiving certain fees including landing fees, terminal rents, or other charges as approved by the Board for a period of up to 365 days.

Resolution No. 524 amending Resolution No. 516 adopting Policy No. 600-007





POLICY OR AGREEMENT

NON-SIGNATORY AIRLINE AND OTHER AIRLINE TERMINAL RENTS

Ticket Counter $133.49 PSFPA ($127.74)


Office Space $106.79 PSFPA ($102.19)


Holdroom Space $106.79 PSFPA ($102.19)


Unenclosed Areas (Outside Storage)

$16.69 PSFPA ($15.97)


Baggage Service Office Space

$80.09 PSFPA ($76.64)


Operations Space $53.39 PSFPA ($51.10)


Common Use Baggage Makeup and Handling, Baggage Claim and Tug Drives

$1.35 ($1.30) per Enplaned and Deplaned Passenger


Baggage Handling System (BHS) Charge

$1.46 ($1.57) per bag processed through the Baggage Handling System


Gate Use Charge The lesser of $2.44 per enplaning and deplaning passenger or $260 ($250) per turn.


Ticket Counter (Small – 8 positions/4 counters) Use Charge

The lesser of $1.20 per enplaning passenger or $64 ($61) per enplaning operation.


Ticket Counter (Large – 10 positions/5 counters) Use Charge

The lesser of $1.20 per enplaning passenger or $91 per enplaning operation.


RENO AIR CARGO LAND RENTS Improved Land Adjacent to Air Cargo Ramp

$0.90 PSFPA Current Master Fee Resolution

As-Is Land in Air Cargo Area not adjacent to the Air Cargo Ramp

$0.60 PSFPA Current Master Fee Resolution





POLICY OR AGREEMENT

RENO MISCELLANEOUS AVIATION SERVICES Fuel Flowage Fees – Reno/Tahoe International

$0.07 per gallon Resolution No. 498

Ground Handlers/Support Service Operators/and other Commercial Aviation Operators

6% of Gross Revenues Commercial Aviation Ground Handling and Support Services Operating Agreement

NON-AIRLINE TERMINAL RENTS Ticket Lobby/Office Support Space

$75.67 PSFPA ($74.94)


Baggage Claim Ground Transportation Facility

$100.89 PSFPA ($99.87)


Baggage Claim Ground Transportation Vestibule Counter

$400.00 per counter per month


Concession Office/Storage/Support Space

$8.40 PSFPA


RENO T- HANGAR RATES T-Hangars (Small) Less than 1,100 Sq. Ft. **

$0.40244 per sq. ft. per month

Resolution No. 502 and Board Memo #12(05)-33

T-Hangars (Large) Greater than 1,100 Sq. Ft.**


Resolution No. 502 and Board Memo #12(05)-33

T-Hangar Storage Space (GA West)



T-Hangar Storage Space (GA East)



T-Hangar Office Space (GA West)

144 sq. ft. at $0.70 per sq. ft. per month 200 sq. ft. at $0.50 per sq. ft. per month


** Per General Aviation Leasing Guidelines adopted on May 19, 2011, a two-tiered system will be implemented effective July 1, 2012 for all T-Hangar leases:

1. All existing T-Hangar leases will be adjusted by the most recent Consumer Price

Index (CPI) at 0% (2%), which is the March 2015 (2014) CPI. 2. All T-Hangar leases with less than a one year term and all month-to-month T-

Hangar leases will be adjusted by the CPI plus an additional 10% differential. Effective on July 1, 2017 and every five years thereafter, an appraisal will be performed to reset market rates and will take the place of a CPI adjustment for that year.





POLICY OR AGREEMENT

RENO AIRCRAFT TIE-DOWN PARKING RATES Aircraft Tie-Down Parking

$100.00 per aircraft tie-down position per month

Resolution No. 519

RENO BOX HANGAR RATES GA West Hangar #2 Hangar #7 Hangar #8


Resolution No. 502

GA West Hangar #9 Hangar #10


Resolution No. 502

GA West/East Aircraft Apron/Ramp


Resolution No. 502

GA East Hangar - Building B Hangar – Building E Hangar – Building F Hangar – Building G


Resolution No. 502

Pilot’s Lounge/ Office Space


Resolution No. 502

VEHICLE PARKING FEES Short Term $1.00 for the first ½ hour or

portion thereof, an additional $1.00 for the second ½ hour or portion thereof, and an additional $1.00 for each hour thereafter. The maximum charge for every 24-hour period is $24.00.

Resolution No. 496

Long Term – Garage (2nd and 3rd floors)

$1.00 for the first ½ hour or portion thereof, an additional $1.00 for the second ½ hour or portion thereof, and an additional $1.00 for each hour thereafter. The maximum charge for every 24-hour period is $14.00.

Resolution No. 496





POLICY OR AGREEMENT

VEHICLE PARKING FEES (Continued) Long Term – Surface Lot $1.00 for the first ½ hour or

portion thereof, an additional $1.00 for the second ½ hour or portion thereof, and an additional $1.00 for each hour thereafter. The maximum charge for every 24-hour period is $10.00.

Resolution No. 496

Oversize Vehicle Parking Charged at the published parking rate multiplied by the number of spaces the vehicle occupies.

Resolution No. 496

Lost Ticket Minimum charge for lost ticket is $24.00.

Resolution No. 496

Parking Proximity Card Replacement

$25.00 for each replacement card


Domiciled Flight Crew-Administration Parking

$20.00 per month per employee

Resolution No. 480

Domiciled Flight Crew Parking


Resolution No. 480

Non-Domiciled Flight Crew Parking


Resolution No. 480

Tenant Employee Parking $20.00 per month per employee

Resolution No. 480

GROUND TRANSPORTATION FEES Vehicle Registration Fee $25.00 minimum annual fee

per company, $5 per vehicle over 5 vehicles, maximum $200

Resolution No. 497

New /Lost/ or Replacement Transponder

$25 for license plate version $10 for windshield version


Non-domicile Bus (bus with no operating permit)

$25.00 per trip Resolution No. 497

Buses (>24 seat capacity) $3.00 per trip

Resolution No. 497

Shuttles (<24 seat capacity) $1.50 per trip

Resolution No. 497





POLICY OR AGREEMENT

GROUND TRANSPORTATION FEES (Continued) Courtesy Vehicles $1.00 per trip or $800 flat

monthly fee

Resolution No. 497

Pay Limousine $1.00 per trip

Resolution No. 497

Taxi $1.00 per trip

Resolution No. 497

Penalty $100.00

Resolution No. 497

PARKING CITATIONS Unattended Vehicle $30.00 Current Master Fee

Resolution

Front Curb Loading/Unloading

$25.00 Current Master Fee Resolution

Commercial Loading/Unloading

$25.00 Current Master Fee Resolution

Parking in Crosswalk $30.00 Current Master Fee Resolution

Curb Markings $30.00 Current Master Fee Resolution

Failure to Obey Sign $30.00 Current Master Fee Resolution

Handicap Zone $250.00 Current Master Fee Resolution

Failure to Obey Officer $30.00 Current Master Fee Resolution

OFF-AIRPORT PARKING CONCESSION Off-Airport Parking Operator Fee

7% of Gross Revenues Resolution No. 497





POLICY OR AGREEMENT

AUTO RENTAL – ON AIRPORT Customer Facility Charge $1.25 per transaction day on

each individual vehicle rental through June 30, 2015 or as the term may be extended

Nonexclusive Ready/Return, Quick Turnaround Facility and Service Facility Lease, as amended on 8/1/2012

Quick Turnaround Lot Premises and Common Area

$1.299 PSFPA


Quick Turnaround Building Rent (1/5th share)

$50,886.56 annual rent


Ready Return Parking

$97.00 Per space per month Nonexclusive Ready/Return, Quick Turnaround Facility and Service Facility Lease, as amended on 8/1/2012

Service Facility Building Rent

$8.122 PSFPA


Service Facility Land Rent

$0.732 PSFPA


AUTO RENTAL- OFF AIRPORT Off Airport Rental Cars $1.00 per rental agreement

for the first 3,000 agreements, 10% thereafter, or 7% flat fee

Resolution No. 199





POLICY OR AGREEMENT

MISCELLANEOUS FEES/CHARGES Photo Copying $1.25 for the first page,

$0.25 for each additional page thereafter. $10 if sent to outside copying service plus cost of copying.

Policy dated July 3, 1990

Reimbursement for services/maintenance

Based on level of personnel ranging from $60.00 to $90.00 per hour and type of equipment ranging from $55.00 to $175.00 per hour

Airline-Airport Use and Lease Agreement, various agreements

Late Payment Service Charge

Highest rate established from time to time – currently 18% APR; minimum charge of $5

Various Agreements

Security ID Badges Initial Identification Badge $50, excluding Signatory Airlines; Badge renewal $25, including Signatory Airlines; Badge Replacement (Lost/Stolen) $50, including Signatory Airlines and Airport Authority employees; Unreturned badge fee $150 assessed to sponsoring company.

Airline-Airport Use and Lease Agreement; Current Master Fee Resolution

Airport Operations Area ID Badges

Air Operations Area employee/tenant identification badge $25


Tenant Fingerprinting $75.00 Airport processing fee per employee for original prints; $25 Airport processing fee per employee for renewal prints


SIDA/Driver Training Session

$25.00 per employee


River Room Rental $250.00 half day charge $400.00 full day charge






POLICY OR AGREEMENT

MISCELLANEOUS FEES/CHARGES (CONTINUED) Copy of Police Report $10.00 per copy, $15.00 if

mailed Current Master Fee Resolution

AIRPORT WAREHOUSING Storage Unit– 5 ft. X 10 ft. $0.70 per sq. ft. per month* Current Master Fee

Resolution Storage Unit– 10 ft. X 10 ft. $0.70 per sq. ft. per month* Current Master Fee



Resolution Storage Unit– 12 ft. X 30 ft. with Loft

$0.46 per sq. ft. per month* Current Master Fee Resolution

* Subject to promotions and discounts to increase business and lower specific vacancy rates. Month-to-month tenants are subject to individual rent increases at any time.

Administrative Fee - new rentals (non-refundable)

$10.00 per new rental Current Master Fee Resolution

Mailbox Rental – Small $21.00 per quarter Current Master Fee Resolution

Mailbox Rental – Medium $27.00 per quarter Current Master Fee Resolution

Mailbox Rental – Large $30.00 per quarter Current Master Fee Resolution

Storage Unit Lock Services – Cutting existing or providing a new lock

$10.00 per occurrence Current Master Fee Resolution

Late Fee Charge $10.00 if payment not received by 5th of each month


Returned Check Charge $25.00 for all checks returned unpaid


PARK TO TRAVEL Outside Parking

$7.00 per day $45.50 per week $75.00 per month


Enclosed Parking – 12 ft. X 20 ft.

$115 per month Current Master Fee Resolution

Enclosed Parking – 12 ft. X 30 ft.


Enclosed Parking – 12 ft. X 30 ft. with Loft






POLICY OR AGREEMENT

PARK TO TRAVEL - CONTINUED Late Fee Charge $10.00 if payment not

received by 5th of each month Current Master Fee Resolution

Returned Check Charge $25.00 for all checks returned unpaid


Administrative Fee- new rentals (non-refundable)

$10.00 per new rental Current Master Fee Resolution

RENO-STEAD AIRPORT Landing Fees – Bureau of Land Management (BLM)

$90.00 per landing for aircraft less than or equal to 155,000 lbs.; $240 per landing for aircraft over 155,000 lbs.

BLM Permit & Airfield Use License

Fuel Flowage Fees – Reno Stead

$0.05 per gallon Resolution No. 498

Fixed Base Operators 2% on labor/personnel charges to customers

FBO Agreement

Fuel Tank Use Fee $0.01 per gallon FBO Agreement Commercial Aviation Operators not leasing facilities from RTAA

3% of gross revenues Commercial Aviation Operator Agreement

Reno Stead Gate Key $25.00 deposit Current Master Fee Resolution

Wash Tokens $0.50 Current Master Fee Resolution

Special Use Permit (i.e. filming, one-time use of ramp, etc.)

$500.00 for non-aviation impact; $800.00 for activity that impacts aviation


Storage Unit- 10 ft. X 20 ft. $ 70.00 per month* Current Master Fee Resolution

Storage Unit- 20 ft. X 20 ft. $115.00 per month* Current Master Fee Resolution

Aircraft Tie-Down Parking – aircraft less than 12,500 lbs. of landed weight

The lesser of $5.00 per aircraft per day or $55.00 per aircraft per month


Aircraft Ramp Parking- transient aircraft with landed weight of 12,500 lbs. or greater

The lesser of $10.00 per aircraft per day or $50.00 per aircraft per week


On motion by Trustee , second by Trustee , the foregoing Resolution No. 525 was passed and adopted this 21st day of May, 2015, by the following vote of the Board: AYES: NAYS: ABSENT: ABSTAIN: __________________________________ Chair Nat Carasali ATTEST: _______________________________________ Secretary Rick Murdock


Date: May 13, 2015 Memo: #15(05)-17 To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO COMPLETE

NEGOTIATIONS AND EXECUTE AN AIRLINE-AIRPORT USE AND LEASE AGREEMENT FOR A TERM OF FIVE YEARS, WITH AN OPTION OF AN ADDITIONAL FIVE YEAR EXTENSION, WITH ALASKA AIRLINES, AMERICAN AIRLINES, DELTA AIR LINES, FEDERAL EXPRESS CORPORATION, SOUTHWEST AIRLINES, UNITED AIRLINES, AND UPS WORLDWIDE

STAFF RECOMMENDATION Staff recommends that the Board authorize the President/CEO to complete negotiations and execute an Airline-Airport Use and Lease Agreement (Agreement) for a term of five years, with an optional additional five year term extension subject to Board approval, with Alaska Airlines, American Airlines, Delta Air Lines, Federal Express Corporation, Southwest Airlines, United Airlines and UPS Worldwide. PURPOSE This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority # 1 – Increase Air Service and Strategic Priority # 3 - Expand Cargo Development and Service, as identified in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. This Agreement represents a five-year financial commitment by these air carriers to lease building facilities at Reno-Tahoe International Airport (RNO) and to pay landing fees, terminal facility rents, and baggage handling system (BHS) charges in accordance with the rate-setting formula established under the proposed Agreement. BACKGROUND The Agreement sets forth the rate-setting formula by which airlines (passenger and cargo) pay for the facilities and services they use. In addition, the Agreement defines the premises that the airline leases and provides the terms and conditions under which the airline operates at RNO. Specifically, the Agreement outlines maintenance obligations; defines indemnification, environmental and insurance requirements; provides the level of airline participation in determining the capital expenditures undertaken by the RTAA; and lays out the responsibilities and conditions of default of both parties. The RTAA is currently operating under an airline agreement and business arrangement that was negotiated in 2010. Over the past twelve (12) months, staff and the RTAA’s consultant (Trillion Aviation) have been analyzing the Authority’s financial situation, developing a proposed business deal, and negotiating with the airlines. Subject to Board approval, staff and the airlines have successfully concluded negotiations and structured a new five (5) year business

Airline-Airport Use and Lease Agreement #15(05)-17 May 21, 2015 Board Meeting Page 2 of 6 arrangement, with an option to extend the term for an additional five years at the mutual agreement of both parties, which is scheduled to be effective on July 1, 2015. DISCUSSION The proposed new five (5) year Airline-Airport Use and Lease Agreement includes recommendations to retain the existing rate-setting methodology and cost allocation formulas with the airlines with minor modifications. In addition, the new Agreement provides updated language that incorporates industry standards regarding airline affiliates and environmental, indemnification, insurance, operations, and security compliance. Airline Rates and Charges Methodology

Landing Fee

The Authority currently recovers 100% of its airfield costs through the airline landing fees and Airfield non-airline revenue. Landing fees are charged to passenger and cargo carriers for each aircraft landing based on the aircraft’s maximum gross landed weight. The landing fee rate is calculated by dividing (i) the total cost of the Airfield as a whole (operation and maintenance expenses, debt service requirements attributable to the Airfield, amortization charges and other funding requirements of Bond Ordinance) less the Airfield non-airline revenues by (ii) the total landed weight of aircraft arrivals. All Airfield users pay the same landing fee rate at the Airport. The Airfield derived non-airline revenue credited against the Airfield Requirement includes: (1) fuel flowage fees; (2) aircraft parking fees; (3) fuel farm use fees and ground rent; and (4) Airport Fixed Based Operator (FBO) concessions. These revenue credits result in approximately $800,000 of annual reductions to the Airfield Requirement. Terminal Rental Rate Terminal rentals reflect cost recovery of terminal costs allocated to airline occupied facilities (compensatory basis) with total facility costs divided by rentable terminal square footage. The average terminal rental rate is calculated as the difference between the total requirement, composed of O&M expenses, debt service requirements and capital expenditures, the Airline reimbursements and the Airlines’ portion of net revenue share, divided by rentable terminal space. The Net Revenue Sharing Credit is calculated as 50% of the gross revenues less operation and maintenance expenses, debt service requirements, Bond Ordinance reserve requirements, repayment of loans to the Capital Account, Special Fund and amortization requirements. The remaining 50% of the Airport system net revenues is transferred to the Authority’s General Purpose Fund. Rentable terminal space is the total area of the terminal building available for lease and dedicated to the sole use of the airlines, rental car companies, concession operators, aviation service providers, various government agencies, and the Authority for purposes of generating revenue

Airline-Airport Use and Lease Agreement #15(05)-17 May 21, 2015 Board Meeting Page 3 of 6 and supporting operations. This definition specifically excludes queuing space in front of airline ticket counters, public areas such as walkways/restrooms and building mechanical space. In the new proposed Agreement, the following relatively minor changes are included: 1. The Authority has been approached by certain airlines to allow self-service kiosks to be

installed within the ticket counter queuing area. To determine whether the RTAA will agree to this use, a full analysis of the proposed layout, passenger flow, and impact is being required along with compliance with the RTAA’s Airline Ticketing Kiosk Standards. If approved by the RTAA, the parties agree that the footprint of each machine and associated passenger processing area of 16 square feet (4 ft. X 4 ft.) per machine will be leased at the ticket counter rental rate and included in rentable terminal space.

2. Given the airline industry response to soaring fuel prices in 2006-07 and the Great Recession of 2008-09, many airlines outsourced their operation to aviation service providers and/or eliminated a significant portion of their operations space near their leased gates. Currently, over 15,400 square feet of operations space beneath the hold rooms is vacant, but rentable. In evaluating the proposed business deal, RTAA staff performed an audit of all available space in the terminal facility. While some of this surplus space has been repurposed over the years to accommodate RTAA maintenance and police functions, along with providing office space for the Transportation Security Administration, much of this space has been vacant for at least a decade. Recognizing that airline use of terminal operations space has structurally changed over the years and existing space does not serve a function or use to any potential tenant, the new agreement is proposing to decommission 6,600 square feet of operations space. The identified surplus space has already been “mothballed”, and will receive minimal maintenance until such time it may be required to support airline operational needs. The proposed agreement will still allocate approximately 500 square feet of vacant, but rentable, operations space for each of its current vacant gates for future airline tenants. This proposed change has no impact on the landing fee rate. However, it will increase the average terminal rental rate by $0.79 per square foot and increases the airlines’ cost per enplaned passenger (CPE) by $0.06 to $0.07. From the RTAA’s perspective, this modification will improve RTAA’s share of the net revenue sharing by more than $100,000 in each year.

The Authority currently recovers approximately 45% of terminal building costs from the airlines through building rental revenues. Baggage Handling System Charge

The Baggage Handling System (BHS) charge reflects 100% cost recovery of the operating maintenance agreement, utilities, supplies, and other direct costs of operating the new system. BHS costs are allocated to the airlines based on the actual number of bags each airline processes.

Airline-Airport Use and Lease Agreement #15(05)-17 May 21, 2015 Board Meeting Page 4 of 6 Agreement Provisions

While the existing Agreement written in 2010 reflected the best practices in the industry and has served the Authority well over the past (5) years, Airport conditions have changed. The updated proposed Agreement represents the current standard in the industry and reflects some of the airlines’ requested changes. The following are the significant Agreement provision changes that do not impact the proposed financial terms and conditions: 1. The new Agreement has a five (5) year term with an option for an additional five (5) years.

The new term is proposed to run from July 1, 2015 to June 30, 2020. The option of an extension for an additional five (5) years provides flexibility to both parties to avoid the time and expense of negotiating a new Agreement, if not necessary.

2. The new Agreement specifically excludes Customer Facility Charges (CFCs) from the

definition of revenues, subject to the net revenue sharing formula, as CFCs are dedicated for rental car purposes only. As previously approved by the Board, the RTAA is funding repairs and maintenance of rental car facilities with a $1.25 Customer Facility Charge (CFC) per transaction day on each individual vehicle rental. With the adoption of this CFC in August 2012, the expiring agreement did not specifically exclude this new revenue source and associated expenses from the net revenue share formula, and this is being corrected in the proposed Agreement.

3. Deletion of “Transfer of Operations” language that established an airline would agree to

move to new ticket counters or gate locations should the RTAA construct new or expanded facilities. This language was a placeholder to provide the RTAA flexibility. However, as a practical matter, current Agreement provisions which establish the right of the airlines to disapprove any terminal project included in the terminal building rental rate and costing more than $2 million, make this provision ineffective and it was removed at the airlines’ request.

4. The RTAA currently contracts with Airport Terminal Services (ATS) to provide loading of

oversized luggage (i.e. skis, golf clubs) from the airline ticket counters to the two BHS take- away belts for security screening. The term of this annual contract is a six (6) month period running from November through April, with an option of an additional three (3) months. The cost of this service is recovered through the BHS charge outlined above.

While this service is a function of the airlines accepting and introducing luggage into the

baggage system, the RTAA contracted with an aviation service provider to assist the airlines upon completion of the Integrated Explosive Detection System (ABC Project) in 2009. Through the negotiations, this contract will now be contracted and paid for directly by the airlines and the proposed Agreement reflects this change.

5. Updated legal “boilerplate” information on insurance, hazardous materials reporting, and

assignment/subletting of leased space.

Airline-Airport Use and Lease Agreement #15(05)-17 May 21, 2015 Board Meeting Page 5 of 6 FISCAL IMPACT The fiscal impact of the financial commitment by the seven (7) signatory passenger and cargo airlines paying landing fees, terminal rents, and the BHS charge over the five-year term is estimated to be approximately $85.5 million. The average annual revenue is estimated to exceed $17.1 million with the FY 2015-16 Budget reflecting revenue of $16.491 million from the signatory carriers. Please see Attachment A. Due to this significant financial commitment, the proposed Agreement continues the airlines contractual right to review and potentially disapprove of airfield, terminal, and BHS capital projects with annual costs exceeding $1 million, $2 million, or $500,000, respectively, and establishes the 50/50 percent sharing of net available revenues. COMMITTEE COORDINATION This item is scheduled to be presented at the May 19, 2015 Finance and Business Development Committee meeting for review and recommendation to the Board. RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion: It is recommended that the Board of Trustees authorize the President/CEO to complete negotiations and execute an Airline-Airport Use and Lease Agreement for a term of five years, with an option of an additional five-year extension subject to Board approval, with Alaska Airlines, American Airlines, Delta Air Lines, Federal Express Corporation, Southwest Airlines, United Airlines, and UPS Worldwide. MMM/rg/cj

Attachment A Summary of Estimated Airline Rates and Charges (Proposed Agreement)

FY

2013-14 Actual

FY 2014-15 Forecast

FY 2015-16 Budget

FY 2016-17 Forecast

FY 2017-18 Forecast

FY 2018-19 Forecast

FY 2019-20 Forecast

Landing Fees – Signatory Passenger

A $5,330,388 $5,827,642 $5,925,991 $6,088,121 $6,351,113 $6,579,518 $6,798,861

Landing Fees – Signatory Cargo B 1,242,306 1,414,872 1,448,010 1,511,557 1,576,852 1,633,560 1,688,019

Total Landing Fees A+B=C $6,572,694 $7,242,514 $7,374,001 $7,599,678 $7,927,965 $8,213,078 $8,486,880

Airline Landing Fee Rate (000-lb) $2.80 $3.11 $3.09 $3.14 $3.24 $3.32 $3.39

Terminal Rental Revenue D $6,616,009 $7,611,000 $7,618,800 $7,962,800 $7,260,200 $7,360,200 $7,696,500

Signatory Airline Ave. Terminal Rental Rate (sq. ft.)

$53.24 $61.21 $63.05 $65.90 $60.08 $60.91 $63.69

Total Signatory Airline Revenue Excluding BHS

C+D=E $13,188,703 $14,853,514 $14,992,801 $15,562,478 $15,188,165 $15,573,278 $16,183,380

Total Passenger Airline Revenue A+D=F $11,946,397 $13,438,642 $13,544,791 $14,050,921 $13,611,313 $13,939,718 $14,495,361

Signatory Enplaned Passenger G 1,634,855 1,592,719 1,614,000 1,633,385 1,653,004 1,672,858 1,694,626

Signatory Passenger Airline Cost Per Enplanement

F/G $7.31 $8.44 $8.39 $8.60 $8.23 $8.33 $8.55

Baggage Handling System (BHS) Charge Revenue

H $1,592,501 $1,571,515 $1,498,203 $1,591,841 $1,567,431 $1,621,282 $1,675,871

BHS Charge per Processed Bag $1.33 $1.41 $1.33 $1.39 $1.35 $1.38 $1.41

Total Signatory Passenger and Cargo Revenue

E+H=I $14,781,204 $16,425,029 $16,491,004 $17,154,319 $16,755,596 $17,194,560 $17,859,251

Net Revenue Available for Sharing $1,767,445 $728,892 $891,814 $742,464 $2,668,200 $3,023,640 $2,911,664

Airline 50% Share of Net Revenue Available for Sharing

$883,722 $364,446 $445,907 $371,232 $1,334,100 $1,511,820 $1,455,832


Date: May 13, 2015 Memo: #15(05)-18 To: Chairman and Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO ACCEPT A PENDING

AIRPORT IMPROVEMENTS PROGRAM (AIP) GRANT OFFER AND AWARD A CONSTRUCTION CONTRACT FOR THE TAXIWAY “C” RECONSTRUCTION PROJECT AT RENO-TAHOE INTERNATIONAL AIRPORT WITH GRANITE CONSTRUCTION COMPANY IN THE AMOUNT OF $8,308,308

STAFF RECOMMENDATION Staff recommends the Board authorize the President/CEO to award a construction contract for the Taxiway “C” Reconstruction project at Reno-Tahoe International Airport with Granite Construction Company, in the amount of $8,308,308. PURPOSE This action requests authorization for the President/CEO to award a construction contract for the Taxiway “C” Reconstruction at Reno-Tahoe International Airport to Granite Construction Company. This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #2 – Optimize General Aviation Operations and Services, and Strategic Priority #4 – Facilitate Economic Development at Both Airports, as identified in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND Taxiway “C” is an existing asphalt taxiway that provides direct access from the RNO runways to the Fixed Based Operators (FBO) and aircraft parking aprons on the east side of the Airport (GA East). The asphalt pavement is over thirty years old and has exceeded its useful life. Maintenance requirements and related costs have increased significantly. In October 2013, emergency reconstruction was made on a portion of the taxiway to repair a pavement failure due to subsidence. This required a temporary closure of portions of the taxiway and rerouting of aircraft access to various GA East facilities. Reconstruction of Taxiway “C” has been identified as the highest priority airfield pavement project at RNO on the Federal Aviation Administration (FAA) Airport Capital Improvement Program (ACIP). The project consists of replacing approximately 30,000 square yards of Taxiway “C” pavement between connector Taxiways “D” and “L”. The work will also include reconstruction of connector taxiways joining Taxiway “C” with Runway 16L-34R and the GA East aircraft parking aprons. The work includes demolition, excavation, stabilizing fill, utility relocation, taxiway pavement, drainage improvements, utilities, signage, pavement markings, and taxiway edge lighting. Wood Rodgers Inc. generated plans and specifications for the project and the contract documents were issued for bids in April 2015. Also included in the design are construction phasing plans, an operational plan accommodating runway and taxiway closures, and a contingency plan for aircraft operations during construction.

Taxiway “C” Reconstruction - Construction Contract #15(05)-18 May 21, 2015 Board Meeting Page 2 of 4 Extensive stakeholder and Airport user outreach was conducted with RTAA Planning, Operations, Engineering, FBO’s, Tenants, Reno-Tahoe Aviation Group (RTAG), and various Airport users. These meetings provided information to identify project constraints and operational criteria to be utilized for the project. The Basis of Design (BOD) report and construction plans were approved by the FAA Airports District Office (ADO). This engineering report included a Benefit / Cost Analysis (BCA) of asphalt versus concrete pavement construction on a life cycle basis. Due to extreme temperature variations and other weather related environmental factors, concrete pavement is expected to perform with higher durability and lower long term maintenance costs. Additionally, this will replace the only major remaining portion of asphalt taxiway (excluding proprietary taxilanes and aprons) on the airfield, and will result in a uniform concrete runway / taxiway system. The construction phase of the project will be funded with a pending Airport Improvements Program (AIP) grant from the FAA. The Taxiway “C” Reconstruction is the highest priority project in the RTAA Airport Capital Improvement Plan (ACIP) for the RTIA in 2015. The construction documents were generated in accordance with FAA Advisory Circulars and other applicable federal, state, and local requirements. The attached exhibit shows the work areas and phasing plan for the entire project. DISCUSSION The Taxiway “C” Reconstruction project was publicly advertised and bids were opened on April 23, 2015. Bids were received from the following contractors:

Bidder Bid Amount Q&D Construction $9,066,063.00 Granite Construction Company $8,308,308.00 Engineer’s Estimate $8,373,246.00

The low, responsive, and responsible bidder is Granite Construction Company, in the amount of $8,308,308. The basis of award is for the base bid and there are no alternate bid items. The bids were reviewed for conformance with the bid requirements and recommendation is made to award the construction contract to Granite Construction Company. The construction will require 170 calendar days to complete. The work is scheduled to start in June 2015 and will require a phased closure of Taxiway “C” during construction. Additionally, the portion of work for connector Taxiway “J” within the Runway 16L-34R Runway Safety Area (RSA) will require a 20 day closure of Runway 16L-34R. Runway 16R-34L will remain in operation during this period.

Taxiway “C” Reconstruction - Construction Contract #15(05)-18 May 21, 2015 Board Meeting Page 3 of 4 Construction Management services shall be procured separately with Amendment No. 1 (Work Order 15-02) to the 2015 PM/CM Professional Services Agreement with Atkins North America, for approval by separate Board action at the May 2015 Board meeting. Table 1 below is an estimate of the total program costs:

Table 2 – Project Estimate At Completion (Phase 1) Design / Pre-Construction

Services

Construction Management Construction Other Direct Costs Estimate At

Completion

$595,800* $731,400 $8,308,308 $84,170 $9,719,678

* Design costs are funded under a separate grant AIP 3-32-0017-100. Other Direct Costs include, but are not limited to, permits, utility company fees, environmental testing, legal advertisements, printing, and administrative costs. Environmental remediation is a standard exclusion from the contract and is not anticipated for this project. The Estimate At Completion (EAC) is a preliminary estimate for budgetary purposes only. The EAC amount is the aggregate of the previously funded grant for design services (AIP 3-32-0017-100 for $595,800) and the pending grant application ($9,123,878) submitted in April 2015 to the FAA Airports District Office (ADO) based on actual construction bids. This replaces the initial program estimates in the RTAA Airport Capital Improvement Plan (ACIP) submitted to the FAA ADO in January 2015. The FAA ADO has indicated that the grant offer, commensurate with this program amount, should be issued in late May or early June 2015. COMPANY BACKGROUND Granite Construction Company has a local office in Reno, Nevada and a corporate office in Watsonville, California. All of the work associated with this project is expected to be performed by the staff based in Reno and will primarily utilize locally based subcontractors and material suppliers. Granite Construction Company has performed numerous airfield construction projects at the Reno– Tahoe International (RNO) and Reno–Stead (RTS) Airports for the RTAA in the past. The local Granite Construction Company personnel have extensive experience in airfield pavement construction, phasing airport construction work, and coordinating runway and taxiway closures at the RNO and RTS airports. FISCAL IMPACT This construction contract in the amount of $8,308,308 will be funded by a pending AIP grant. The FAA eligible share is $7,789,039 (93.75%) and the RTAA share is $519,269 (6.25%). The RTAA share will be paid for by the General Purpose Fund. The program budget is $9,719,678, with $8,308,308 allocated for construction. COMMITTEE COORDINATION This item is scheduled to be presented at the May 19, 2015, Planning and Construction Committee meeting.

Taxiway “C” Reconstruction - Construction Contract #15(05)-18 May 21, 2015 Board Meeting Page 4 of 4 RECOMMENDED MOTION Staff hereby recommends that the Board adopt the following motion: “It is hereby moved that the Board authorize the President/CEO to accept a pending Airport Improvements Program (AIP) grant offer and award the construction contract for the Taxiway “C” Reconstruction project at Reno-Tahoe International Airport to Granite Construction Company, in the amount of $8,308,308 and authorize the President/CEO or her designee to sign.” MMM/dl/cj

RUNWAY 16R-34L

TAXIWAY A

TAXIWAY B

TAXIWAY L

RUNWAY 7/25

RUNWAY 16L-34R

TAXIWAY “C” & CONNECTORS

GA EAST (FBO’s)

RENO – TAHOE INTERNATIONAL AIRPORT TAXIWAY “C” RECONSTRUCTION

TERMINAL BUILDING

TAXIWAY D

#15(05)-18


Date: May 13, 2015 Memo: #15(05)-19 To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO EXECUTE

AMENDMENT NO. 1 (TAXIWAY “C” RECONSTRUCTION PROJECT – RENO AIRPORT, AND TAXIWAY “C” RECONSTRUCTION AND EDGE LIGHTING SYSTEM INSTALLATION – STEAD AIRPORT) TO THE PROFESSIONAL SERVICES AGREEMENT FOR THE 2015 ANNUAL PROGRAM MANAGEMENT AND CONSTRUCTION MANAGEMENT SERVICES FOR THE AIRPORT CAPITAL IMPROVEMENT PLAN AT RENO-TAHOE INTERNATIONAL AIRPORT AND RENO-STEAD AIRPORT, WITH ATKINS NORTH AMERICA, IN THE AMOUNT OF $827,230, FOR A TOTAL AMOUNT OF $873,230

STAFF RECOMMENDATION Staff recommends that the Board authorize the President/CEO to execute Amendment No. 1 (Taxiway “C” Reconstruction Project – Reno Airport, and Taxiway “C” Reconstruction and Edge Lighting System Installation – Stead Airport) to the Professional Services Agreement (PSA) for the 2015 Annual Program Management and Construction Management (PM/CM) Services for the Airport Capital Improvement Plan (ACIP) at the Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the amount of $827,230, for a total amount of $873,230. PURPOSE The Taxiway “C” Reconstruction (Reno Airport) and Taxiway “C” Reconstruction and Edge Lighting System Installation (Stead Airport) projects are in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #1 – Increase Air Service, Strategic Priority #2 - Optimize General Aviation Operations and Services, and Strategic Priority #4 – Facilitate Economic Development at Both Airports, as identified in the RTAA FY 2014-2018 Comprehensive Strategic Plan. BACKGROUND In order to implement the construction of capital projects, the RTAA has retained Atkins North America to provide PM/CM services. These services augment RTAA staffing for specialized technical services and seasonal construction periods. PM/CM services are industry standards and are required by Federal Aviation Administration (FAA) regulations to ensure proper administration, inspection, and quality assurance for federally funded construction projects. The PM/CM services include, but are not limited to, program administration, project management, client coordination, agency coordination, pre-construction services, design review, cost estimates, project controls (cost and schedule), bid evaluation, contract administration, construction management, owner’s representation, construction inspection, materials testing, survey controls, quality assurance and other related tasks.

2015 PM/CM Services – Amendment No.1 #15(05)-19 May 21, 2015 Board Meeting Page 2 of 3 A Request for Qualifications (RFQ) was issued in September 2010, to solicit PM/CM services for the three year calendar period of 2011 to 2013, with the option to extend services for 2014 and 2015. Firms submitted responses, and the selection panel consisting of former Trustees as well as members of RTAA staff, chose Atkins North America as the most qualified to provide these services due to their experience in construction management, previous Airport project experience, and available resources. The Professional Services Agreement (PSA) for 2015 PM/CM services was approved at the November 2014 Board meeting (Board Memo #14(11)-53, dated November 12, 2014). A summary of Board actions associated with the PSA for the 2015 Annual Work Plan for PM/CM services with Atkins North America is provided in the following Table 1 - 2015 Annual Work Plan. The Agreement contains provisions to accommodate changes in project scope and the addition of new work orders. This allows for fees to be negotiated annually, along with the ability to add new services, as project scope and schedules are developed. DISCUSSION This amendment adds Construction Management (CM) services to the Atkins 2015 Annual Work Plan for:

• Work Order 15-02 Taxiway “C” Reconstruction (Reno Airport) • Work Order 14-04 (Amendment) – Taxiway “C” Reconstruction and Edge Lighting

System Installation (Stead Airport) The services consist of owner’s representation, construction management, project administration, a resident engineer, quality assurance, survey controls, construction inspection, materials testing, contract administration and tenant coordination. The services and corresponding fee negotiations for the above Work Orders are based on the duration of construction and the content of the design for the project. These additional services are in conformance with the standard provision in the Board approval for construction contracts: “Construction Management Services will be retained by a separate amendment to the agreement for 2015 Annual PM/CM Services, with Atkins North America.”

Table 1 - 2015 Annual Work Plan Work Order

Project Funds Board Approval PM/CM Fee

15-01 (RNO &

RTS)

Project Programming and Admin. Services

Airport Improvement Program (AIP) Grant

Nov 20, 2014 #14(11)-53 $46,000

Amendment No. 1 15-02 (RNO)

Taxiway “C” Reconstruction (RNO)


Pending $731,400

14-04 Amendment

(RTS)

Taxiway “C” Reconstruction & Edge Lighting System

(RTS)


Pending $95,830

Total $873,230

2015 PM/CM Services – Amendment No.1 #15(05)-19 May 21, 2015 Board Meeting Page 3 of 3 COMPANY BACKGROUND Atkins North America has a local office of approximately 35 members in Reno, Nevada and is headquartered in Tampa, Florida. The work associated with this project will be performed by personnel based in Reno. Atkins has performed PM/CM services at Reno-Tahoe International and Reno-Stead Airports since 2006. The local Atkins personnel have extensive experience in airfield pavement construction, phasing airport construction work, and specific inspection and materials testing staff for projects at both RNO and RTS Airports. Additionally, their North American Aviation Group has extensive expertise and resources in all aspects of aviation related capital projects. FISCAL IMPACT Amendment No. 1 will be funded in the amount of $731,400 for the Taxiway “C” Reconstruction (Reno - Work Order 15-02) and $95,830 for the Taxiway “C” Reconstruction and Edge Lighting System Installation (Stead – Work Order 14-04 Amendment) from separate pending AIP grants. For the Reno project, the FAA eligible share is $685,688 (93.75%) and the RTAA share is $45,712 (6.25%). The RTAA share will be paid for by the General Purpose Fund. For the Stead project, the FAA eligible share is $89,840 (93.75%) and the RTAA share is $5,990 (6.25%). The RTAA share will be paid for by the Special Purpose Fund. The current 2015 Annual Work Plan for PM/CM services of $46,000 is increased by Amendment No. 1 in the amount of $827,230, for a total of $873,230. COMMITTEE COORDINATION This item is scheduled to be presented at the May 19, 2015 Planning and Construction Committee meeting. RECOMMENDATION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board approve Amendment No. 1 to the Professional Services Agreement for 2015 Annual Program Management and Construction Management Services, with Atkins North America, in the amount of $827,230 and authorize the President/CEO, or her designee, to execute the amended agreement.” MMM/dl/cj


Date: May 13, 2015 Memo: #15(05)-20 To: Chairman and Board Members For: May 21, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO ACCEPT A PENDING

AIRPORT IMPROVEMENT PROGRAM (AIP) GRANT OFFER AND AWARD CHANGE ORDER No. 1 TO THE CONSTRUCTION CONTRACT FOR THE TAXIWAY “C” RECONSTRUCTION AND EDGE LIGHTING SYSTEM INSTALLATION PROJECT AT RENO-STEAD AIRPORT WITH GRANITE CONSTRUCTION COMPANY, IN THE AMOUNT OF $1,593,655

STAFF RECOMMENDATION Staff recommends the Board authorize the President/CEO to accept a pending Airport Improvement Program (AIP) grant offer and award Change Order No. 1 to the construction contract for the Taxiway “C” Reconstruction and Edge Lighting System Installation project at Reno-Stead Airport with Granite Construction Company, in the amount of $1,593,655. PURPOSE This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #2 - Optimize General Aviation Operations and Services and Strategic Priority #4 – Facilitate Economic Development at Both Airports, as identified in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND Taxiway “C” is an existing taxiway that provides direct access from the aircraft parking apron to Runway 14-32 (see attached exhibit). The asphalt pavement is over thirty years old and has exceeded its useful life. Use of the taxiway is currently limited due to the severely deteriorated surface of the pavement. Reconstruction of Taxiway “C” will allow aircraft landing on Runway 14-32 to turn off mid-way down the runway and avoid the intersection with Runway 8-26 to the southeast. Avoidance of the runway intersection should reduce delays and interference between landings, take offs, and taxiing aircraft in that portion of the uncontrolled airfield. Taxiway “C” is an integral part of the overall airfield configuration as shown on the 2010 Reno-Stead Airport Master Plan, Airport Layout Plan (ALP), and included in the Airport Capital Improvement Program (ACIP) for improvement, which have both been approved by the Federal Aviation Administration (FAA). The airfield design and runway configuration is established by the prevalent winds in the area, determining the alignment of Runways 14-32 and 8-26. The midpoint taxiway to these runways provides improved access and circulation to the airfield traffic system, and is part of the long term plans to accommodate the anticipated fleet-mix in the Master Plan. The Taxiway “C” Reconstruction project consists of replacing approximately 25,000 square yards of asphalt pavement between Runway 8-26 and Runway 14-32. The reconstruction also includes a short portion between Runway 8-26 and Taxiway “A”, at the north edge of the aircraft parking apron. The work includes demolition, grading, stabilizing fill, utility relocation, asphalt pavement, drainage improvements, signage, markings, and the installation of either solar powered edge lights

Stead Taxiway “C” Reconstruction – Change Order No. 1 #15(05)-20 May 21, 2015 Board Meeting Page 2 of 4 or reflective markers. Currently, the taxiway does not have an edge lighting system, and subsequent discussions with the FAA regarding certification and grant eligibility of solar lighting systems resulted in this component being deleted from the project scope. Reflective markers will be installed in lieu of solar lighting. Wood Rodgers Inc. generated plans and specifications for the project, and the contract documents were issued for bids in July 2014. The bid package was configured with two separate phases and several bid alternates, to allow award of the Base Bid (Phase 1), Bid Option (Phase 2), and any Bid Alternates # 1 through 6, based on the availability of Airport Improvement Program (AIP) grant funding. The design also included construction phasing plans, an operational plan accommodating runway and taxiway closures, and a contingency plan for aircraft operations during construction. The attached exhibit shows the work areas and phasing plan for the entire project. Due to AIP grant funding constraints, only the Base Bid and Bid Alternates 1 and 3 (Phase 1) were awarded for the original construction contract with Granite Construction Company at the September 2015 Board meeting (Board Memo #14(09)-46, dated September 3, 2014). That Board Memo stated that the remaining work for Phase 2 may be incorporated by a subsequent change order if additional funding was provided at a later date by the FAA. Table 1 is a budget summary of the entire program.

Table 1 – Budget Summary

Work Area Construction Soft Costs Budget Estimate

Phase 1 - Base Bid + Alternates 1 & 3 $1,402,235* $618,700** $2,020,935

Phase 2 - Bid Option + Alternates 2 & 5*** $1,556,795 $166,270 $1,723,065

Total Program $3,744,000

* Phase 1 construction contract was awarded on September 11, 2014 and is funded under a separate AIP grant 3-32-0018-33.

** Design costs are funded under a separate AIP grant 3-32-0018-32. The actual cost of the entire design (Phase 1 & 2) is allocated to the Phase 1 Budget Estimate.

*** Phase 2 Alternates are corrected to be Alternates # 2 and 5. DISCUSSION The bid documents were issued in July 2014 with the provision that award of the Base Bid (Phase 1), Bid Option (Phase 2), and any Bid Alternates would be commensurate with available federal funding, at the sole discretion of the RTAA in conformance with the full project intent. As stated above, due to AIP funding constraints, the contract was awarded in September 2014 limited to only the Phase 1 work. In discussions with the FAA Airports District Office (ADO), RTAA staff emphasized the cost and schedule benefits of constructing Phases 1 and 2 concurrently in 2015. Additionally, the RTAA stated that the Bid Option (Phase 2) and related Bid Alternates, could be incorporated by Change Order to the existing contract, upon allocation of additional AIP funding. This would allow the full reconstruction of Taxiway “C” in 2015 prior to the National Championship Air Races in September.

Stead Taxiway “C” Reconstruction – Change Order No. 1 #15(05)-20 May 21, 2015 Board Meeting Page 3 of 4 Subsequently, on May 12, 2015, additional Airport Improvement Program (AIP) grant funding was allocated by the FAA for funding of the entire project. This Change Order provides for the addition of the Bid Option (Phase 2) and related Bid Alternates # 2 and 5. The Phase 1 construction work is currently in progress and upon approval of this Change Order, the Contractor can work concurrently on the Phase 2 portion of the project. Additional Construction Management services shall be procured separately with Amendment No. 1 (Work Order 14-04 Amendment) to the 2015 Project Management/Construction Management (PM/CM) Professional Services Agreement with Atkins North America, for approval by separate Board action at the May 21, 2015 Board meeting. The initial Program Estimate At Completion (EAC) of $3,744,000 is revised to reflect current actuals, Change Order No. 1, and related construction management costs, as follows:

Table 2 – Project Estimate At Completion Design / Pre-Construction

Services

Construction Management Construction Other Direct Costs Estimate At

Completion

$345,500 $289,030 $2,995,890 $90,000 $3,720,420

Other Direct Costs include, but are not limited to, permits, utility company fees, environmental testing, legal advertisements, printing, and administrative costs. Environmental remediation is a standard exclusion from the contract, and is not anticipated for this project. COMPANY BACKGROUND Granite Construction Company has a local office in Reno, Nevada and a corporate office in Watsonville, California. All of the work associated with this project is expected to be performed by the staff based in Reno, and will primarily utilize locally based subcontractors and material suppliers. Granite Construction Company has performed numerous airfield construction projects at the Reno– Tahoe International (RNO) and Reno–Stead (RTS) Airports for the RTAA in the past. The local Granite Construction Company personnel have extensive experience in airfield pavement construction, phasing airport construction work, and coordinating runway and taxiway closures at the RNO and RTS Airports. FISCAL IMPACT Change Order No. 1 will be funded in the amount of $1,593,655. The FAA eligible share is $1,494,052 (93.75%) and funded by a pending AIP grant. The RTAA sponsor share is $99,603 (6.25%) and will be paid for by the Special Purpose Fund. The program budget is $3,720,420, with $2,995,890 allocated for construction. The current construction contract amount of $1,402,235 is increased by Change Order No. 1 in the amount of $1,593,655, for a total of $2,995,890. COMMITTEE COORDINATION This item is scheduled to be presented at the May 19, 2015, Planning and Construction Committee meeting.

Stead Taxiway “C” Reconstruction – Change Order No. 1 #15(05)-20 May 21, 2015 Board Meeting Page 4 of 4 RECOMMENDED MOTION Staff hereby recommends that the Board adopt the following motion: “It is hereby moved that the Board authorize the President/CEO to accept a pending Airport Improvement Program (AIP) grant offer and award Change Order No. 1 to the construction contract for the Taxiway “C” Reconstruction and Edge Lighting System Installation project at Reno-Stead Airport with Granite Construction Company, in the amount of $1,593,655 and authorize the President/CEO or her designee to sign.” MMM/dl/cj

RENO - STEAD AIRPORT TAXIWAY “C” RECONSTRUCTION AND EDGE LIGHTING SYSTEM INSTALLATION

(PHASE 2 – CHANGE ORDER #1)

RUNWAY 14-32

RUNWAY 8-26

TAXIWAY “C” RECONSTRUCTION (PHASE 1)

RUNWAY INTERSECTION

APRON

TAXIWAY “A”

TAXIWAY “B”

TERMINAL / EOC

PHASE 2 - CHANGE ORDER #1

#15(05)-20


Date: May 13, 2015 Memo: #15(05)-21 To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Marily Mora, A.A.E., President/CEO Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO NEGOTIATE

FINAL TERMS AND EXECUTE A 30-YEAR LAND LEASE WITH TWO 10-YEAR OPTIONS TO EXTEND WITH LONGLEY CORNERS LLC FOR 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 negotiate final terms and execute a 30-year Land Lease Agreement with two 10-year options to extend, subject to Board approval, with Longley Corners LLC for 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 identified in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND The Johnson Group, a local real estate brokerage firm, submitted a Letter of Interest (LOI) on behalf of Longley Corners LLC for development of a Boat and RV Storage facility on the Property in July 2014. Longley Corners LLC owns and operates two mini-storage facilities in Reno. One facility is located in Caughlin Ranch, Caughlin Mini-Storage. The second facility, Longley Corners Storage, is located directly south of the Property on the southwest corner of Longley Lane and McCarran Boulevard. Based on existing occupancy rates, continued market demand, and the proximity of the Property to the existing Longley Corners Storage facility, Longley Corners LLC envisioned the Property for an expansion of the existing use. The proposed facility would offer 125 canopy structures to accommodate RV’s and/or boats of varying size (Exhibit A). The proposed facility would also include a wash rack and a small office; however, the primary property management functions would occur at the existing Longley Corners Storage facility.

Longley Corners LLC #15 (05)-21 May 21, 2015 Board Meeting Page 2 of 5 DISCUSSION The Property commonly referred to as Airport South (APN 025-383-01) has been advertised on the RTAA’s website as well as marketed to local real estate brokers for the last five years. The Property is approximately 4.39 acres in size; however, only 2.78 acres are developable. The Boyton Slough, jurisdictional waters of the US, is located along the western edge of the Property. As a result of the Slough, the developable area is reduced to 2.78 acres. In August 2014, staff met with the CEO’s Land Development Working Group to solicit input on moving forward with the Letter of Intent (LOI). Staff explained that the Property had many development constraints, including the Boyton Slough that could not be relocated, as well as Runway Protection Zone (RPZ) restrictions. Based on feedback from the CEO’s Land Development Working Group, the CEO directed staff to respond to the LOI with draft Business Terms outlining RTAA’s terms for development of the Property. Longley Corners LLC accepted the draft Business Terms and on November 17, 2014 entered into a 90-day due diligence period. During the due diligence period, RTAA Planning and Engineering staff submitted an RPZ application to the Federal Aviation Administration (FAA) seeking approval, since the proposed use involved canopy structures located in the RPZ. Through the FAA review of the RPZ application, staff was notified of revised RPZ regulations that shifted the RPZ to the north. As a result of the shift, the entire Property is now outside of the RPZ, and therefore no longer requires FAA approval for the development. This does not remove the adherence to other FAA requirements such as remaining clear of Airport airspace surfaces. Concurrently, staff obtained an appraisal from Johnson-Perkins & Associates of the Property “as is” to determine Fair Market Value (FMV) land rent. The appraisal identified the lease value of the property at $0.60 per square foot per year. As a part of due diligence, Longley Corners LLC conducted preliminary engineering design. Following conversations with the Regional Transportation Commission (RTC) and the Nevada Department of Transportation (NDOT), Longley Corners was informed that access to the site would not be available from McCarran Boulevard. Based on this change, staff requested an updated appraisal from Johnson-Perkins & Associates based on the access restrictions to the Property. The updated appraisal resulted in a reduced FMV of the Property from $0.60 to $0.44 per square foot per year. Following the completion of due diligence and the revised FMV of the Property, Longley Corners LLC is seeking an initial 30-year land lease for a storage facility on 2.78 acres of developable land. The lease would commence on June 1, 2015 with two (2) ten-year options to extend, for a total possible term of 50 years (June 1, 2015 – May 30, 2064). Each option to extend will be subject to approval by the Board of Trustees.

Longley Corners LLC #15 (05)-21 May 21, 2015 Board Meeting Page 3 of 5 Longley Corners LLC proposes a capital investment of approximately $1.2 million in the Property. The investment will include development of all infrastructure for the site as well as development of the canopy structures, wash rack, and small office. Longley Corners LLC understands they will be responsible for all utilities and related services associated with the project. The 30-year term is warranted for the following reasons:

• limited development interest due to size, allowed uses, and airspace constraints; and

• compatible with surrounding uses; and • capital investment estimated at $1.2 million based on property size; and • lease term in line with other development decisions being made at this time;

and • proximity of new business to existing business owned and operated by

Longley Corners LLC. The Johnson Group is seeking a broker incentive fee pending approval of the Longley Corners LLC land lease with the RTAA. The RTAA Board of Trustees adopted the Airport Economic Development Commercial Real Estate Broker Incentive Policy (Policy) on June 9, 2011. The Policy’s key terms and conditions include the negotiation of incentive fee and payment schedule. Staff recommends a 3% incentive fee based on the property size and proposed use. The incentive fee would only be paid upon a fully executed land lease which must be signed within 90 calendar days following Board approval of the terms proposed in this memo. In accordance with the Policy, the land lease would include a provision requiring the broker to reimburse the incentive fee if the tenant defaults on the lease. 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 2000 to address the market demand for mini storage in south Reno. The facility, which is 95% occupied, includes 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.

http://www.longleycorners.com/index.html

http://caughlinstorage.com/

Longley Corners LLC #15 (05)-21 May 21, 2015 Board Meeting Page 4 of 5 FISCAL IMPACT As a part of the due diligence period, staff commissioned Johnson-Perkins & Associates to perform a land appraisal of the Property which indicated a FMV per square foot land value of $0.44 per year, which Longley Corners LLC indicated was an agreeable base rate. Based on this rate, Longley Corners LLC has agreed to pay rent on the 2.78 acres of developable land with initial monthly payments estimated at $4,440 or $53,282 annually for a minimum total contract value of $1,598,467. Consistent with grant assurance requirements, Longley Corners LLC has agreed to a Rent Adjustment every five years at a rate of 2% compounded annually and an FMV adjustment at the mid-term (Year 15) of the land lease based on appraisal. Prior to any land lease extension, rent shall be adjusted by appraisal to the Fair Market Value. This rent adjustment provision is consistent with other RTAA commercial land leases. To encourage Longley Corners LLC’s capital investment in the Property, staff recommends rent deferral for 12 months from land lease execution, or upon issuance of City of Reno Certificate of Occupancy, whichever occurs first.

Proposed Monthly Revenue

Proposed Annual Revenue

Term 30 Years

$4,440 $53,282 $1,598,467

3% Broker Incentive Fee ($47,954)

Net Contract Value $1,550,513

COMMITTEE COORDINATION This item is scheduled to be presented at the May 19, 2015 Finance and Business Development Committee meeting. RECOMMENDED MOTION It is recommended the Board authorize the President/CEO to negotiate final terms and execute a 30-year land lease with two 10-year options to extend, subject to Board approval, with Longley Corners LLC for 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. MMM/sh/cj

Longley Corners LLC #15 (05)-21 May 21, 2015 Board Meeting Page 5 of 5

EXHIBIT A SITE PLAN


Date: May 13, 2015 Memo: #15(05)-22 To: Chairman & Board Members For: May 21, 2015 Board Meeting From: Ann Morgan Subject: REVIEW AND POSSIBLE ACTION ON RECOMMENDED PERFORMANCE

CRITERIA AND GOALS FOR RENO-TAHOE AIRPORT AUTHORITY PRESIDENT/CEO, MARILY MORA FOR FY 2015-16, AS WELL AS RECOMMENDATION FOR EXTENSION OF CONTRACT TERM

COMPENSATION COMMITTEE RECOMMENDATION The Compensation Committee recommends the Board of Trustees approval of the performance criteria and goals attached hereto for Fiscal Year (FY) 2015-16, which performance criteria and goals are required pursuant to Reno-Tahoe Airport Authority (RTAA) President/CEO Marily Mora’s employment contract and this Board’s action on December 11, 2014. The Compensation Committee also recommends extending Ms. Mora’s contract an additional two years, or to and including June 30, 2018, given the short time left on her contract. BACKGROUND Pursuant to Ms. Mora’s contract, the Board of Trustees must establish and provide to Ms. Mora annually, 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 FY 2015-16 by the June 2015 meeting to ensure that the goals and criteria were set prior to the start of the next Fiscal Year. Ms. Mora’s employment contract provides that she is entitled to a performance bonus of up to Twenty percent (20%) of her annual salary. DISCUSSION The Compensation Committee, consisting of Chairman Carasali and Trustees Arger, Mayberry and Wirth, met on April 29, 2015 to discuss possible goals. The Committee reviewed the proposed goals and weights, and discussed them with Ms. Mora. Once again, the goals were specifically aligned with the Priorities and Guiding Principles of the RTAA FY 2014-2018 Comprehensive Strategic Plan adopted by the Board. The Committee spent significant time discussing the metrics for each of the Goals. Regarding Priority #1, the Committee requested better metrics regarding its Community Education component. New metrics were added to require a training session for tourism sales representatives and to drive membership in a frequent flyer program for one airline. Regarding Priority #4, the Committee moved three of the metrics: non-airline revenue per enplaned passenger, RNO building and land rent, and RTS building and land rent to the Financial Integrity Guiding Principle, believing that they better fit that goal.

President/CEO Performance Criteria and Goals FY 2015-16 #15(05)-22 May 21, 2015 Board Meeting Page 2 of 2

Regarding Priority #5, the Committee discussed the importance of customer feedback to the continued improvement of the RTAA. Ideas for establishing a baseline as well as metrics for improving on the baseline were offered. The efficacy of social media as a metric was discussed and deleted, as was the metric of maintaining a minimum number of training hours per employee. The need to establish stretch metrics was discussed and adjustments were made by the Committee. The Committee asked Ms. Mora to develop additional metrics regarding Safety and Security if possible, and determined to delete all of the metrics in the Professionalism and Ethics Guiding Principle, and inserted instead, the metric that Ms. Mora maintain effective working relationships with the appointing entities through annual meetings. A copy of the goals approved by the Committee is attached. A discussion of the weight to be accorded each goal was had by the Committee who determined to leave the weights as stated in the attached goals. Finally, the Chairman Carasali expressed concern that because Ms. Mora would not be evaluated on her FY 2014-15 goals until next fall, and because that is about six months before her current contract expires, he asked the Committee to consider extending her contract another two years for a total of five years. A discussion of Ms. Mora’s talents and the need to retain her at the Reno-Tahoe Airport Authority ensued, with the Committee unanimously agreeing that a contract extension of two years was in the best interest of the RTAA. FISCAL IMPACT Ms. Mora’s discretionary Bonus for FY 2015-16 will be dependent on how well she achieves the performance goals and criteria approved by this Board. She may receive up to 20% of her then salary as a discretionary bonus. An extension of the existing employment contract may result in an increase in salary in the sole discretion of the Board commencing at the beginning of each Fiscal Year. RECOMMENDED MOTION The Compensation Committee hereby recommends that the Board adopt the following motion: “It is hereby moved that the Board approve the performance criteria and goals for FY 2015-16, and the weight to be accorded each goal as unanimously recommended by the Compensation Committee. Further it is hereby moved that the Board extend the term of the President/CEO’s employment contract two years, or to and including June 30, 2018.” AM/cj

AMORGAN/10378049.1/031669.0002 1

RTAA PRESIDENT/CEO PERFORMANCE CRITERIA AND GOALS FY 2015-2016

Goals are based on the Comprehensive Strategic Plan FY 2014-2018 as budgeted in the FY 2015-2016 budget to be adopted on May 21, 2015. STRATEGIC PRIORITY PERFORMANCE GOALS AND MEASUREMENTS Priority #1: Increase Air Service

25% • Number of Airline Meetings - 35 • Average Number of Carriers - 7 • Average Number of Destinations – 15 • Continued Education of the Community

Regarding Air Services • Conduct Air Service 101 Sessions

for tourism sales representatives, business representatives and civic organizations, from Reno, Sparks and Lake Tahoe.

• Demonstrate local air service demand and educate the community about air service by conducting a pilot program with Southwest Airlines Rapid Rewards Program to increase loyalty in local market to existing airlines serving RNO by promoting membership in frequent flyer programs.

Priority #2: Optimize General Aviation Operations and Services

10% • Complete Review of RNO Minimum Standards for Commercial and Non- Commercial Operations/Leases/Activities

• Conduct Reno-Stead Airport GA Minimum Commercial Standards Stakeholder Workshops and Develop Draft RTS GA Minimum Commercial and Non-Commercial Operations/Leases/Activities

AMORGAN/10378049.1/031669.0002 2

• Publish Four RNO General Aviation Newsletters

Priority #3: Expand Cargo Development and Service

10% • Use Best, Commercially Reasonable 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

• Complete Phase 1 of Cargo Market Study

Priority #4: Facilitate Economic Development at Both Airports

10% • Complete Negotiations and Execute a Board Approved Ground Lease with Development Partner for RNO Home Gardens

• Manage Stead RFQ Process to Conclusion with Final Recommendation to the Board

• Use Best, Commercially Reasonable Efforts to Develop Reno-Stead Airport as UAS Testing and Training Center

Priority #5: Provide a Positive Environment and Experience for All

5% • Solicit Annual Customer Feedback to establish a baseline of customer satisfaction

• Gain 300 Hours of Positive Earned Media • Maintain Management Turnover Rate of Bad

Attrition at or Below 7% (Excluding Retirements)

• Complete Rollout of Succession Plan Program

• Obtain nomination ( 50% participation) of RTAA in the FY 2016 Best Places to Work Survey and exceed nomination criteria with 75% employee participation

• Develop and implement Action Plans to Improve Employee Satisfaction Based on Identified Needs from 2014-2015 Employee Satisfaction Survey

AMORGAN/10378049.1/031669.0002 3

GUIDING PRINCIPLES/OPERATING PRACTICES Safety and Security

10% • Pass Part 139 Annual Airport Certification Inspection—No more than 10 discrepancies noted by FAA

• Conduct a Part 139 Annual Mass Casualty Emergency Tabletop Exercise—12 outside agencies participating

• 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

Air Service Development

See #1 under Strategic Priorities

Customer Service

See Strategic Priority #5

Financial Integrity 25% • Non-Airline Revenue per Enplaned Passenger – FY 2015-16 Budget of $16.14

• RNO Building and Land Rent –FY 2015-16 Budget of $5,347,700

• RTS Building and Land Rent –FY 2015-16 Budget of $586,600

• Maintain Fitch Bond Rating of A • Maintain 361 Days of Cash on Hand as

Adopted in FY 2015-2016 Budget • Maintain Cost Per Enplanement as Adopted

in FY 2015-2016 Budget ($8.39) • Refinance the 2005 Airport System Revenue

Bonds

Professionalism and Ethics

5% • Maintain effective and positive working relationships with appointing entities and all airport stakeholders

• Meet with appointing entities annually

AMORGAN/10378049.1/031669.0002 4

Environmental Responsibility

0%

Financial Summary • The following table summarizes the operating statement information for the nine month period

ending March 31, 2015:

Due to operating expenses being 7.0% below budget and a higher than anticipated revenue sharing credit, the airline cost per enplaned passenger is estimated to be $7.37 as compared to budgeted cost per enplaned passenger of $8.15.

Parking Comparison

Air Service • Reno-Tahoe International Airport (RNO) served 277,477 passengers in March 2015, which is flat

versus March 2014. During the first quarter of 2015, RNO served 758,811 passengers, representing

President/CEO’s Report April 2015

Marily M. Mora, A.A.E., President/CEO____________________________

President/CEO’s Report – April 2015 May 21, 2015 Page 2 of 16

an increase of 1.5% when compared to the same period last year.

TOTAL PASSENGERS

2013 2014

JAN 264,265 241,181 -8.7% 2.2%

FEB 259,299 228,035 -12.1% 3.0%

MAR 306,139 278,172 -9.1% -0.2%

1st Quarter 829,703 747,388 -9.9% 1.5%

APR 279,418 266,800 -4.5%

MAY 295,494 282,277 -4.5%

JUN 328,755 316,720 -3.7%

2nd Quarter 903,667 865,797 -4.2%

JUL 333,321 332,242 -0.3%

AUG 322,083 318,965 -1.0%

SEP 283,800 284,931 0.4%

3rd Quarter 939,204 936,138 -0.3%

OCT 262,473 266,701 1.6%

NOV 227,213 225,384 -0.8%

DEC 270,051 263,682 -2.4%

4th Quarter 759,737 749,592 -1.3%

TOTAL 3,432,311 3,298,915 -3.9%

YTD Total 747,388 1.5%758,811

Total Passengers

March-15

246,571

234,763

277,477

758,811

Passengers% Diff.

Passengers% Diff.

2015

• In March 2015, RNO was served by seven airlines providing 55 peak daily departures to 15 non-stop destinations. Total departures at RNO were up 1.9%, while the seat capacity increased 0.9% when compared to March 2014.

President/CEO’s Report – April 2015 May 21, 2015 Page 3 of 16 • JetBlue will begin non-stop daily flights between RNO and New York City (JFK) on May 28, 2015.

The airline will utilize an Airbus 320 aircraft with 150 seats on this route. The flights are scheduled to operate four times a week until June 17, 2015, before transitioning into a daily service. Flight # 81 will depart JFK at 7:35 PM and arrive RNO at 11:06 PM. Flight # 80 will depart RNO at 11:59 PM and arrive JFK at 8:14 AM.

• Recent and Upcoming Schedule Changes Alaska Airlines

In order to accommodate business passenger traffic between Reno and the Bay Area, starting July 1, 2015, Alaska Airlines will re-time the late evening flight between Reno and San Jose. o Flight # 2253 will depart Reno at 4:30 pm and arrive in San Jose at 5:28 pm o Flight # 2500 will depart San Jose at 6:00 pm and arrive in Reno at 6:56 pm

There is no change in the early morning flight on this route. o Flight # 2183 departs Reno at 6:00 am and arrives in San Jose at 6:57 am o Flight # 2250 departs San Jose at 7:30 am and arrives in Reno at 8:28 am

American Airlines

The third non-stop seasonal flight to Dallas will begin on June 3, 2015. This flight is scheduled as a morning flight, as opposed to a red-eye flight which was originally published by American.

Delta Air Lines

The non-stop flight between Reno and Minneapolis will return as a Saturday flight on May 23, 2015.

United Airlines The non-stop flight to Houston on United will return on June 6, 2015, for the summer season.

• With respect to air cargo, RNO handled 10,381,009 pounds of cargo in March 2015, an increase of

6.4% when compared to March 2014. During the first quarter of 2015, RNO handled 29,913,211 pounds of air cargo, an increase of 1.2% when compared to the same period last year. RNO has recorded seven consecutive quarters with a year-over-year cargo growth.


TOTAL CARGO

2013 2014Pounds Metric

JAN 10,269,546 10,303,380 0.3% 10,113,421 4,587 -1.8%

FEB 8,635,807 9,486,697 9.9% 9,418,781 4,272 -0.7%

MAR 9,457,376 9,758,391 3.2% 10,381,009 4,708 6.4%

1st Quarter 28,362,729 29,548,468 4.2% 29,913,211 13,566 1.2%

APR 8,639,232 9,876,465 14.3%

MAY 9,398,212 10,269,963 9.3%

JUN 9,001,339 9,679,744 7.5%

2nd Quarter 27,038,783 29,826,172 10.3%

JUL 10,149,807 10,863,843 7.0%

AUG 10,859,694 10,853,726 -0.1%

SEP 9,689,115 10,127,014 4.5%

3rd Quarter 30,698,616 31,844,583 3.7%

OCT 10,834,930 11,429,538 5.5%

NOV 10,099,499 10,664,398 5.6%

DEC 13,998,438 15,776,073 12.7%

4th Quarter 34,932,867 37,870,009 8.4%

TOTAL 121,032,995 129,089,232 6.7%

YTD Total 29,548,468 29,913,211 13,566 1.2%

Total Cargo

March-15

% Diff. 2015 % Diff.Cargo in Pounds

• Campbell-Hill Aviation Group has completed the Air Trade Report (2009-2014) for the Reno-Tahoe

International Airport catchment area as part of the Air Cargo Study currently in progress. Campbell-Hill is developing the final report which will include a leakage assessment. The draft final report is scheduled for completion in May 2015. This final report will be presented to the Board at a later date.

President/CEO’s Report – April 2015 May 21, 2015 Page 5 of 16 Business Development Aviation Tax Abatement Initiative

• Senate Bill No. 93 (SB 93) and Assembly Bill No. 161 (AB 161) Legislation On March 10, 2015, SB 93 was heard in a Senate Revenue and Economic Development work session. Steve Hill, Director of the Governor’s Office of Economic Development (GOED), informed the committee of several minor amendments, which he designed to make the bill conform to a couple of other GOED bills currently under consideration. Mr. Hill also established the legislative intent that the purpose of the bill is not to abate the sales and use tax on the purchase of an aircraft. The bill received a unanimous vote to amend and did pass. Next, SB 93 was heard by the full Senate. On April 8, 2015, SB 93 passed unanimously off the Senate floor. The companion bill, AB 161, was amended to exactly mirror SB 93 in terms of the abatement period which is 20 years for both bills, and is the bill that GOED will move forward. Mr. Hill believes AB 161 will be heard in the Assembly Ways and Means Committee on May 14, 2015, and he anticipates it moving out of Committee in short order and to the floor for vote.

Reno-Stead Airport Economic Development (AED) and General Aviation (GA)

• UAS (Unmanned Aircraft Systems) The RTAA continues to work with the Nevada Institute for Autonomous Systems (NIAS) Program Management Office (PMO) to bring UAS testing to RTS. The FAA approved a third Certificate of Authorization (COA) for PrecisionHawk, which was initially part of the American Society for Photogrammetry and Remote Sensing (ASPRS) Symposium held in October 2014. The other two companies receiving COAs at RTS are Trimble and Altavian. Although COA’s for all three companies were originally associated with the 2014 ASPRS Symposium, staff is now working with these companies to identify other testing opportunities at RTS. Staff has invited the companies to visit RTS. At this time, Trimble and Altavian have indicated they will return for the 2015 ASPRS Symposium September 29 – October 1, 2015. On March 20, 2015, the FAA released a memorandum regarding Small Unmanned Aircraft Systems Operations in the National Airspace System (NAS). This memorandum addresses an interim policy to respond to the current demands for all sizes of UAS to operate in the NAS, and bridges the gap between UAS operations and the proposed small UAS (sUAS) rule. In addition to many guidelines, the interim policy allows Commercial UAS operations with Section 333 waivers to operate geographically anywhere, but they must remain at least 5 nautical miles (NM) from an airport having an operational control tower; or 3 NM from an airport having a published instrument flight procedure; or 2 NM from an airport not having a published instrument flight procedure or an operational control tower, unless they have specific authorization. This new policy places the Reno-Stead Airport at a competitive disadvantage. Staff is working with GOED, NIAS and other sources to reposition RTS and leverage the FAA Test Site designation, as well as the subsequent national press. In addition, staff attended the Association for Unmanned Vehicle Systems International (AUVSI) Silicon Valley Chapter meeting on April 1, 2015 in San Francisco, California. The purpose of attending the meeting was to build relationships with UAS companies based in Silicon Valley that may be interested in relocating to RTS, and to meet the CEO of the national AUVSI who was the scheduled keynote speaker at the meeting. Attendance at the meeting resulted in six test leads to whom staff has provided subsequent information regarding the Reno-Stead test site.


Staff also attended the AUVSI Unmanned Systems 2015 Conference and Trade Show on May 4-7, 2015 in Atlanta, Georgia. Working with State and regional economic development partners, including NIAS, GOED, the Economic Development Authority of Western Nevada (EDAWN), the Desert Research Institute (DRI) and the University of Nevada at Reno (UNR), staff met with target companies to discuss opportunities for testing and/or relocating their businesses to RTS.

• Aviation Classics Aviation Classics Ltd. (ACL), the Fixed Base Operator (FBO) located at Reno-Stead Airport, is currently in negotiations for a new 5-year FBO Agreement. The current FBO Agreement will expire May 31, 2015. However, it does include a month-to-month Hold Over provision. Staff had anticipated bringing the new 5-year FBO Agreement to the Board in April. However, ACL has asked for a delay to ensure sufficient time to review, discuss and finalize pending business terms. Staff anticipates this item will be presented at the June 18, 2015 Board of Trustees meeting.

• Real Estate Development Opportunity Request for Qualifications (RFQ) At the February 12, 2015 Board of Trustees meeting, Dermody Properties was authorized to represent the RTAA in order to complete Phase 2 and Phase 3 of the Reno-Stead Airport Real Estate Development Opportunity RFQ. Completion of Phase 2 and Phase 3 will allow Dermody Properties to identify market opportunities and financing strategies necessary to prepare a business plan and final agreement terms. On March 12, 2015, Dermody Properties and the Airport Economic Development team hosted a project kick-off meeting for all RTS tenants, and a one-on-one meeting with the Reno Air Racing Association (RARA) Chairman and CEO. The purpose of the meetings was to review the RFQ process, introduce the Dermody Properties team, and solicit input on future development at RTS. As a part of the tenant and stakeholder engagement meetings, RTAA staff met with the North Valley’s Citizen Advisory Board (CAB) on April 13, 2015 to provide an update to the North Valley’s community on the RFQ process and next steps. Approximately 70 people, primarily representing the neighborhood of Silver Knolls, attended the meeting to voice concerns about the potential future development. The main concerns were focused around the possible extension of the rail line, commercial vehicle access through the adjacent residential neighborhood, future road transportation network, the review process with City of Reno and/or Washoe County for any future development, and infrastructure, specifically water supply. Staff will attend the bi-monthly North Valleys CAB meeting to provide regular updates on the RFQ process in an effort to keep the community informed about the RFQ. In addition to attending the CAB meetings, staff will also meet with the Silver Knolls Property Owners Association on May 20, 2015 to provide an update and answer questions regarding the RFQ.

• Tactical Air Support (TacAir)

A new one-year lease agreement was executed with Tactical Air Support (TacAir) for 6,424 square feet of office and hangar floor space in Hangar 6 at the Reno-Stead Airport. TacAir is a corporation which conducts and/or provides various specialty and experimental aviation services, activities and operations. The total contract value is $24,442.30.

• On April 17, 2015, the Aircraft Owners and Pilots Association (AOPA) released their second AOPA Fly-In Request for Proposals (RFP). This RFP will be used by AOPA to select regional fly-in host airports for calendar years 2016, 2017 and 2018. Since December 2014, when the Reno-Stead


Airport (RTS) was initially not selected to host a 2015 regional fly-in event, Airport staff have continued discussions with AOPA regarding their operational and safety concerns related to preparing inexperienced pilots for Stead’s high elevation and surrounding mountainous terrain. Airport staff, in collaboration with the RNO Air Traffic Control Tower Manager, will meet once again with AOPA in May 2015 to discuss potential flight paths into RTS which may address AOPA’s operational and safety concerns. Pending the outcome of this meeting, Airport staff may once again submit a proposal for RTS.

Reno-Tahoe International Airport (RNO) General Aviation

• T-Hangar Lease Agreements On July 1, 2012, the Board published T-Hangar Leasing Guidelines. The T-Hangar Leasing Guidelines have been amended twice by the Board, the first amendment on May 17, 2012 and the second on July 10, 2014. The T-Hangar Leasing Guidelines include annual rental rate adjustments by the Consumer Price Index (CPI) with a cap of 3%. In addition to the annual CPI adjustments, a market rate adjustment is required by appraisal every five years. RTAA staff and legal counsel met with the Reno-Tahoe Aviation Group (RTAG) representatives Bob Meurer and Tom Hegge earlier this year to discuss proposed changes to the T-Hangar Lease Agreements. RTAA legal counsel conducted an exhaustive review of the documents, including the RTAA’s use of CPI to establish annual rental rate adjustments pursuant to the T-Hangar Leasing Guidelines and as defined in the terms of the lease. On April 13th, staff and RTAA legal counsel met with Mr. Meurer and Mr. Hegge to review legal counsel’s determination of their proposed revisions to the T-Hangar lease terms. Mr. Meurer and Mr. Hegge were satisfied with the RTAA’s response to their proposed revisions as presented. The proposed revisions did not include any changes to the annual CPI rental rate adjustment methodology.

Outside Commercial Properties • Divine Matrix SOULutions

A new twelve-month lease agreement was executed with Divine Matrix SOULutions for 265 square feet of office space at 1280 Terminal Way. Divine Matrix SOULutions provides hypnosis and other self-help services to individuals and will utilize the space to meet with clients. The total contract value is $2,544.00.

• Rock Sport Nevada, Inc. A new twelve-month lease agreement was executed with Rock Sport Nevada, Inc. for 346 square feet of office space at 1280 Terminal Way. Rock Sport Nevada, Inc. is branching out into the sports apparel business and will utilize the space as a working office for the development team. The total contract value is $3,321.60.

RNO Land Development

• Home Gardens Land Lease Dermody Properties (DP) provided an update to the CEO’s Land Development Working Group on February 12, 2015. Through a Request for Proposal (RFP) issued in January 2015, a Class A logistics company is conducting a site selection process for a “build-to-suit” facility. DP believes that this logistics tenant is the highest and best use for this site, resulting in maximum utilization of the property and optimal revenue to the RTAA. The RFP process is expected to be completed by August 2015, which would result in a lease execution date between August and September 2015. If the logistics company does not select the Home Gardens site, then DP may need to reassess the


tenant mix, site design, and potentially the business terms previously approved by the Board of Trustees.

• Airport West

Reno Commercial Properties, a local real estate brokerage firm, submitted a Letter of Interest (LOI) on behalf of O’Donnell Realty Group for development of a Recreational Vehicle (RV) storage facility on a 5.18 acre parcel owned by the RTAA on Airways Drive between McCarran Boulevard and Peckham Lane. Staff responded to the LOI with DRAFT Business Terms outlining the RTAA’s terms for development of the property. O’Donnell Realty Group accepted the DRAFT Business Terms on April 16, 2015 and staff is preparing a Right of Entry & Hold Harmless Agreement providing a 90-day due diligence period. Following the due diligence period, O’Donnell Realty Group will determine if the site is suitable for the proposed RV Storage development.

RNO Concessions

• Clear Channel The Airport Authority’s new advertising concessionaire Clear Channel conducted a 3-week advertising sales blitz and has added several new advertisers to the Airport program, including Hobie Cat who currently has a custom display installed on the B Concourse elbow.

Project Status In Progress Reno-Stead Airport

• Taxiway ‘C’ Reconstruction Project The project consists of reconstruction of approximately 25,000 square yards of Asphaltic Concrete (AC) pavement of the existing taxiway between Runways 8-26 and 14-32. The work consists of demolition, excavation, stabilizing fill and base material placement, utility relocation, asphalt pavement, drainage, and taxiway edge lighting system installation.


The Airport Improvement Program (AIP) grant offer for design services was issued by the Federal Aviation Administration (FAA) on August 8, 2013. The Professional Services Agreement (PSA) for design services with Wood Rodgers, Inc. for $345,500 was approved at the February 2014 Board of Trustees meeting. The design kick off meeting was conducted on April 23, 2014. A Basis of Design (BOD) review meeting was conducted May 28, 2014 to validate design criteria. The 60% design review was conducted on June 27, 2014, and the final review was conducted on July 18, 2014. The construction documents (plans and specifications) were issued for bids on July 24, 2014, with the bid opening conducted on August 13, 2014. The FAA grant for Phase 1 construction was accepted by the Reno-Tahoe Airport Authority (RTAA) on August 22, 2014. The Phase 1 construction contract with Granite Construction Company, in the amount of $1,402,235 was approved at the September 2014 Board of Trustees meeting. The remaining Phase 2 work could be added to the contract at a later date, if additional funding was provided by the FAA. Due to the Phase 1 grant offer being received late in the year, the contract was awarded with construction scheduled to start in Spring 2015. This avoided having excavation areas open during inclement winter weather. A Pre-Construction meeting was conducted on February 17, 2015 and a Notice To Proceed (NTP) was issued for the procurement phase of the project. The Notice To Proceed (NTP) for the construction phase was issued for April 27, 2015 and construction is scheduled for completion in early June 2015. In discussions with the FAA Airports District Office (ADO), RTAA staff emphasized the cost and schedule benefits of constructing Phases 1 and 2 concurrently in 2015. On May 12, 2015, the FAA ADO allocated additional AIP grant funding for Phase 2 construction of the project. Subsequently, a change order to the construction contract for Phase 2, in the amount of $1,593,655, will be pending approval at the May 2015 Board meeting. Approval of this change order will allow the full reconstruction of Taxiway “C” in 2015 prior to the National Championship Air Races in September.

Reno-Tahoe International Airport

• Taxiway ‘C’ Reconstruction Project The project consists of providing design services for the reconstruction of approximately 11,300 square yards of existing Asphaltic Concrete (AC) taxiway pavement. Taxiway C is east of Runway 16L-34R and serves the GA East Fixed Based Operator (FBO) facilities and aircraft parking aprons. The work consists of demolition and reconstruction of the existing taxiway between Taxiway D and Taxiway L. The project includes excavation, stabilizing fill, base, asphalt or concrete pavement, drainage, utilities, signage, and pavement markings. The Basis of Design (BOD) report evaluated a cost comparison between asphalt and concrete pavement. Specific project requirements and design features for the project have been developed in collaboration with project stakeholders as part of the design process. The design services included construction phasing plans, an operational plan accommodating runway and taxiway closures, and contingency plans for aircraft operations during construction. The AIP grant offer for design services was issued by the FAA on July 30, 2014. A Request For Qualifications (RFQ) was solicited in September 2014 and the Statements of Qualifications (SOQ) were evaluated by the Selection Committee on October 15, 2014. The Professional Services Agreement (PSA) for the design work, with Wood Rodgers, Inc. in the amount of $595,800 was approved at the November 2014 Board of Trustees meeting. Stakeholder coordination meetings were conducted in March 2015 with various tenants, airlines, and Airport users.


The construction contract was issued for bids in April 2015, with the Pre-Bid meeting on April 16, and the bid opening on April 23, 2015. The construction contract will be presented for approval at the May 2015 Board meeting, contingent upon FAA construction funding. Programming of construction funding was discussed with FAA Airports District Office (ADO) Program Managers during their visits to Reno-Tahoe International Airport (RNO) on December 1, 2014 and on March 24, 2015. The FAA indicated that AIP entitlement funding is available, and requested the RTAA to submit a grant pre-application, pending the bid opening on April 23, 2015. Subsequent to the bid opening, the final grant application was submitted to the FAA on April 28, 2015. The construction is expected to begin in June and is scheduled for completion in December 2015.

• Central Disposal Facility (CDF) Upgrade

The project consists of improvements to the existing Central Disposal Facility (CDF) including structural modifications, roof refurbishment, overhead door retrofit, upgrade of the sand / water separator, plumbing modifications, electrical modifications, water service modifications, equipment replacement and site improvements. The facility consists of three separate bays for waste water and glycol disposal, vehicle wash down, high pressure water and steam cleaning equipment. The facility provides disposal services for most of the airline Ground Service Equipment (GSE) and aircraft deicing glycol. A Request For Qualifications (RFQ) was solicited in August 2013 for the selection of a Consultant for design services. Statements of Qualifications (SOQ) were received from submitting firms on September 12, 2013. The Professional Services Agreement for an initial Program Study with H+K Architects was issued by administrative award in November 2013. Specific project requirements and design features for the facility upgrade were discussed with project stakeholders, as part of the Program Study during coordination meetings on January 16 (RTAA Facilities) and January 21, 2014 (Airline Station Managers). Alternate locations for the facility were also evaluated prior to initiation of the design phase. The estimated budget for this program including soft costs is $1,500,000. The design options and recommendations from the Program Study were presented at the June 2014 Planning and Construction Committee meeting. In agreement with the findings of the Program Study, Alternate 1 was determined to be the preferred design option. On this basis, the design fee proposal was subsequently negotiated with H+K Architects and was approved at the August 2014 Board of Trustees meeting. The 90% design package was submitted for review on March 5, 2015. The contract documents (plans and specifications) will be issued for bids on May 7, with the Pre-Bid meeting on May 21, and the bid opening on June 4, 2015. The construction contract will be presented for approval at the June 2015 Board meeting. The construction is expected to begin in July and is scheduled for completion in December 2015.

• Pavement Management System Program

The Professional Services Agreement (PSA) with Stantec Consulting for the 2015 Airfield and Landside Pavement Management System (PMS) Program, in the amount of $238,200, was approved at the February 12, 2015 Board of Trustees meeting. The services consist of airfield pavement inspections (annual update), airfield pavement repairs and rehabilitation (design work - Phase 10), landside pavement inspections (annual update), and RNO landside pavement rehabilitation (design work - Parking Lot Reconstruction Phase 4). The program is funded from the Fiscal Year (FY) 2014-15 Capital Improvements Budget.

2015 Airfield Pavement Maintenance – A Notice To Proceed was issued for Stantec to conduct design services and generate contract documents (plans and specifications) to be issued for bids


in Summer 2015. The Pre-Bid meeting, bid date, and start of construction will be determined during the design phase of the project. The bid opening will be coordinated with the subsequent presentation for a separate construction contract approval at the appropriate Board meeting. The construction schedule will also be developed during the design phase to establish duration and project milestone dates. This work will require closures of Runway 16R-34L and Taxiway B. The project will be scheduled around the proposed Taxiway “C” Reconstruction project, and potentially after the National Championship Air Races to be held September 16-20, 2015. The Runway closure will be coordinated with RTAA Airside Operations, Airline Station Managers, and FAA Air Traffic Control.

2015 Landside Pavement Maintenance – A Notice To Proceed was issued for Stantec to conduct design services and generate contract documents (plans and specifications) to be issued for bids in May 2015. The Pre-Bid meeting is scheduled for May 19, and the bid opening on May 28, 2015. The bid opening will be coordinated with the subsequent presentation for a separate construction contract approval at the June Board meeting. The Notice To Proceed (NTP) for the construction phase will be issued for July 6, 2015 and construction is scheduled for completion by September 30, 2015. This work will require closure of the south portion of the public parking lot in two separate phases. The parking lot closure will be coordinated with RTAA Landside Operations and Marketing and Public Affairs.

• Sound Insulation Program

The final open grant (Phase 21) for the sound insulation program was submitted to the FAA for closure on April 30, 2015. The grand total of all mitigated homes, since 1995, is shown in the table below:

City of Sparks City of Reno Washoe County

Total Phases Single/Multi Single/Multi Single/Multi Total

Total 2,416 2,189 523 5,128

• Geographic Information System Project Arora Engineers, Inc. and RTAA Planning staff continue to work on the Federal Aviation Administration (FAA) approved electronic Airport Layout Plan (eALP) and Geographic Information System (GIS) business systems integration for Reno-Tahoe International Airport (RNO). During the last week in March, the consulting team captured high resolution aerial imagery of Reno-Stead Airport (RTS) in conjunction with the collection of supplemental aerial imagery at RNO. The collection of aerial imagery at RTS will allow for the development of GIS mapping of that facility, similar to the GIS mapping of RNO. The capture of aerial imagery for both airports during a single mobilization resulted in a significant cost savings versus using separate flights. It is anticipated that the photography will be delivered to the RTAA during the second quarter of 2015. On April 15 & 16, 2015, Arora Engineers Inc. was on-site to meet with a number of RTAA divisions to finalize the design of specific GIS business applications and to facilitate business systems integration. The consulting team also presented Planning staff with two prototype mobile data collection applications for use on existing RTAA iPads and iPhones. Planning staff will evaluate the applications and provide feedback to the consulting team for inclusion into final mobile mapping application deliverables.

• Air Service Capability Analysis A Notice to Proceed (NTP) was issued to Landrum & Brown on April 7, 2015 for an Air Service Capability Analysis. Landrum & Brown was selected from the list of qualified aviation planning


consultants who submitted applicable qualifications to our annual Consultant Services Request for Qualifications. Five (5) aircraft will be analyzed to determine whether or not they can operate into and out of the Reno-Tahoe International Airport, fully loaded, given the length of the longest runway combined with airport elevation, temperatures and terrain parameters. Data from this analysis will be used to evaluate infrastructure and facility improvements needed for projected air service as well as for airline venture queries. The analysis is scheduled for completion in June 2015.

Organizational Issues • A new organizational wellness initiative called “THRIVE for

Wellness” was launched in January 2015 and is experiencing great success! This year long program follows alongside the new Values initiative in that each letter of THRIVE has taken on a wellness oriented theme. The Team Weight Loss Challenge concluded at the end of April. Overall, the 43 participants lost an astounding, combined total of 350 pounds, with the winning team losing a little over 8% of their starting weight! March/April’s theme was “Let’s get Honest about Heart Health” and we had several employees get their blood pressures checked, and almost 50 employees attended heart health classes and walked at least 10,000 steps a day. May/June’s theme will be “Let’s Give Retirement the Respect and Recognition It Deserves” and will include a 4-week financial fitness challenge and presentations from Nevada PERS and our deferred compensation provider, Voya Financial.

• In partnership with Quantum Workplace (the same organization that facilitates the Best Places to Work program), the RTAA rolled out its all Employee Satisfaction Survey, commencing on May 6 and running through May 19, 2015. This is an electronic survey that employees will complete online. The last time that such a survey was conducted (2013), the response rate was 62%. This year, we have set a goal of 75%.

• Members of the Human Resources (HR) team continued succession planning efforts by facilitating a

“talent calibration” meeting in which each member of the Executive Team discussed their slates and their succession strategy. Next steps of the program involve qualifying identified employees, and creating individual development plans. The initial focus of the program is on the development of executive slates only, and in later phases, slates will be developed for the remainder of the management team as well as “hard-to-fill” positions.

• Staff from HR, Building Maintenance, Security, Airport Economic Development, Police and Landside Operations conducted a New Employee Orientation for new hires. This program is required for all new employees and reviews information on the Reno-Tahoe Airport Authority (RTAA) mission and vision, “everyday leadership”, and key policies such as sexual harassment, EEO, safety, technology use and social media, and workplace violence.

• Staff met individually with each member of the Executive team to talk about training needs in order to determine what should be included in the Airport Authority University (AAU) Catalog for Fiscal Year (FY) 2015/2016.

• All RTAA employees will attend a refresher course on the Emergency Evacuation Plan. HR Staff coordinated the first of these classes in April for those departments/divisions who will be most involved in the event of a full or partial terminal building evacuation as well as subsequent repopulation of the terminal. Classes are taught by Airport Firefighters.

President/CEO’s Report – April 2015 May 21, 2015 Page 13 of 16 • HR staff coordinated the first of three classes titled “Excel Basics” in which participants learn how

to create and edit a worksheet, and perform formatting functions.

• The Spring sessions of Fire Extinguisher training commenced. Required annually for all employees, participants are reminded about different types of extinguishers, what types of fires each is used on, and how they need to be operated in order to be safe and effective. After a brief classroom review, participants move outside so they can practice putting out a real fire.

• The Leadership Development Book Club met to discuss Chapter 11 of The Leadership Challenge:

Celebrate Values and Victories. This chapter review was led by a team of three of the participants.

• The Leadership Webinar series continued with a session titled, “Making Ideas Happen.” The speaker was Scott Belsky who discussed how to overcome “reactionary workflow” and start pushing ideas forward.

Misc. Information • Staff is working closely with JetBlue representatives and regional business and tourism partners to

plan the inaugural celebrations for JetBlue’s arrival from New York City on May 28th. There are four key components to the inaugural festivities: The celebration starts with events in New York City on May 27th where 20 destination partners

will be joining RTAA staff for a TravelNevada hosted Media Event in downtown New York City, followed by festivities at the John F. Kennedy International Airport the next day.

On May 28th, the inaugural flight will include media, destination partners, JetBlue executives and over 100 passengers that will be enjoying in-flight bingo and giveaways as they travel to Reno-Tahoe International Airport where they will be welcomed with a ceremonial water arch and media celebration.

On May 29th, the inaugural festivities will continue with a media event at Smithridge Elementary where JetBlue will be donating over 700 books to the school through the FirstBook.org program.

On the inaugural flight, there will be 18 members of the media representing key east coast publications such as Sherman’s Travel, Men’s Health, New York Daily News, Fox News, Boston Herald, Boston Globe, Ski Magazine, Fodor’s, Huffington Post and more. These media representatives will be enjoying customized 4-day familiarization tours in the Reno-Tahoe region as they are hosted by destination partners.

• Airport staff is working closely with representatives from Gumball 3000 and the U.S. Customs and

Border Protection (CBP) to bring the international rally to Reno-Tahoe. This weeklong transatlantic car rally with over 100 drivers and an international news media following will make its way from Amsterdam, Netherlands to Reno, after which the motorists will make their way to San Francisco. Current plans include a media event at Atlantic Aviation on May 27th prior to the start of the car rally, followed by a warm send off from the Airport to the Reno Arch.

• The Volaris flight from Guadalajara continues to be a success. The second half of the marketing incentive program will begin locally in the month of May. The campaign targets the local Hispanic market and will include outdoor boards and radio ads. The message focuses on inexpensive travel to Guadalajara, and will continue through the end of July 2015.

• On May 5th, Airport staff worked with representatives from Next City to welcome the Sixth Annual Vanguard Leadership Conference to the Reno-Tahoe region. The Vanguard conference is an annual


experiential urban leadership gathering of the best and brightest young urban leaders who are working to improve cities around the country in the areas of urban planning, community development, entrepreneurship, government, transportation, sustainability, design, art and media. The conference ended on May 8th, and staff placed signage in the Airport thanking these professionals for visiting the region.

• The #KindnessTakesFlight initiative which has earned the Airport national media attention, focused

on two key events this month - celebration of National High Fives Day and Cinco de Mayo.

On April 16th, National High Fives Day, staff worked with Roy Tuscany, founder of the High Fives Foundation, to welcome passengers to the Airport with “high fives”. The goal was to give 2,009 high fives in honor of the year the foundation began. The Kindness Takes Flight team, in partnership with representatives of the High Fives Foundation, reached the goal in a short amount of time. High Fives is a non-profit foundation based in Truckee that focuses on raising funds and support for athletes who have suffered life altering injuries.

On May 5th, the Kindness Takes Flight team welcomed passengers to Reno-Tahoe International Airport with chips and salsa in celebration of Cinco de Mayo. The team was located in the main terminal where they were also able to welcome arriving passengers on the bi-weekly Volaris flight from Guadalajara.

• Reno-Tahoe International Airport and hundreds of community members welcomed home 35

Veterans of the WWII, Korea and Vietnam Wars, as they returned on the first Honor Flight of 2015. This special program sends veterans free of charge to Washington D.C. to tour the monuments built in their honor. Northern Nevada is preparing for a busy year, with plans for five more Honor Flight weekends this year. Beginning on June 19-21st, a new Vietnam Veteran program will begin, sending those who fought in Vietnam to Washington, D.C., and then bringing them back home with pride.

• Reno-Tahoe International Airport will unveil the 7th Annual Employee Art Show on May 20th in the

depARTures gallery on the second floor of the terminal. This popular display features over 80 entries of photography, crafts, paintings and other artwork from a variety of Airport employees and their families. The opening will include live performances, and art from Airport staff and tenants. This exhibit will be on display through mid-July 2015.

• Staff conducted news media interviews this month which included a feature article in the Tahoe

Quarterly Magazine on air service; multiple television and newspaper interviews regarding the cancellation of the London flight by Thomas Cook; updates on the GA aircraft incident at Stead; and Honor Flight.

• In April 2015, the Nevada Department of Transportation (NDOT), resumed work on their Southbound I-580 Reconstruction Project. This NDOT project, which will involve the long-term closure of several on and off ramps between Glendale Avenue and Moana Lane, is expected to have a significant impact on Airport passengers, tenants, and employees. Short-term nighttime closures of ramps and lanes have already had an impact, causing delays as long as 30 minutes. When the long-term ramp and lane closures begin, significant traffic congestion and delays have been projected for not just the travelers using I-580, but also travelers using adjacent city streets. As information is provided by NDOT and their contractor, Q&D Construction, RTAA Planning staff will communicate impacts via tenant and employee bulletins. Additionally, light board signs will be placed in the Airport loop road and at the public parking exit. The NDOT Southbound I-580 Reconstruction Project is scheduled to be complete in fall 2015.


• The 135-kilowatt solar system installed at the Reno-Tahoe Airport Authority’s Aircraft Rescue and

Firefighting Facility (ARFF) has been fully operational since March 2011. Solar power generation results are provided below. Banked credits have been used during those months when not enough power is generated to cover the monthly use.

Power Generation Current Month FY 2014-2015

Energy Offset from Monthly Bill $2,969 $29,721 Energy Credits Banked $521 $823 Banked Credits Applied ($0) ($4,022) Total Earned $3,490 $30,544 Banked Credits Remaining N/A $9,027

• Beginning July 2014, Airport staff has successfully collected approximately 43.07 tons of recyclable

material. These recyclables equate to a 7.14 percent diversion rate of the Airport’s total waste volume. An annual recycling objective was set at 10 percent. The RTAA’s customary beverage container (plastic bottles and cans) recycler is no longer capable of collecting and recycling the beverage containers generated at RTIA. Therefore, beverage container recycling has been temporarily discontinued until staff can determine a cost effective recycling method.

Material March 2015

(Tons) April 2015

(Tons) FY14-15

(Total Tons) Cardboard 1.20 1.32 26.65 Mixed Paper 0 6.48 16.10 Glass 0 0 0 Batteries 0.03 .015 0.32 Beverage Containers 0 0 0 Total 1.23 7.81 43.07

Quarterly Strategic Plan Update • Over the past quarter, staff’s major initiative in regard to implementation of the Strategic Plan has

been preparation of the FY 2015-16 budget. Each year a “zero based budget” approach is used that requires each department to justify their work plans and expenditures as opposed to just assuming last year’s budget serves as a baseline. For FY 2015-16, staff was also required to demonstrate how these work plans support moving the Strategic Priorities and Guiding Principles forward. The significant projects, programs and/or initiatives for each department will be loaded into OnStrategy’s online management tool for monitoring and reporting once the Board adopts the FY 2015-16 budget.

Staff has also met with the OnStrategy team several times over this past quarter to refine and

customize their online management tool to better fit the Airport’s tracking and reporting needs. As you will recall, the RTAA is a “beta” test user of the OnStrategy tool, and therefore has worked closely with them to evolve the development of the product to maximize efficiency and utilization. It is anticipated that the tool will be fully customized to meet our needs by the end of this fiscal year, which will allow staff to use it for FY 2014-15 close-out and FY 2015-16 first quarter reporting.

Legislative/Government Affairs Update • Relative to the RTAA legislative agenda, the McDonald•Carano•Wilson (MCW) team provides

regular written updates to staff in the form of timely hearing reports and bill tracking, and continues to monitor legislation involving:

1. Guns and their presence in airports


2. Purchasing/contracting restrictions affecting governmental bodies 3. Collective bargaining 4. Aviation tax abatement 5. Uber’s entrance into Nevada 6. Economic development, including UAVs 7. Funding for air service development

Highlights include: Worked with staff to review/approve language relative to AB 239 (Assemblyman Anderson’s

UAV/UAS bill). Mr. Anderson was accommodating of RTAA language needs regarding the definition of an airport. Heard 5/7 in Senate Judiciary; RTAA in neutral position. Bill passed Assembly unanimously; anticipating the bill will pass out of the Senate.

Brian Kulpin, RTAA Vice President of Marketing and Public Affairs, testified in support of SB 312 in Assembly Commerce & Labor. This is Senator Kieckhefer’s bill proposed by Reno area hotel/casino properties to impose a room surcharge for marketing efforts through the Reno-Sparks Convention and Visitors Association (RSCVA).

We anticipate AB 161 (Democrats’ version of the aviation tax abatement) to be heard on May 14th and moved to a floor vote soon. Related businesses are encouraged by the Governor’s Office of Economic Development (GOED) to start the abatement application process now for review by the GOED Board in early July. Each applicant is assigned a liaison within local Regional Development Authorities (RDAs).

Provided insight to Finance Committee Chair on RTAA’s opposition to SB 371, dealing with apprentices on public works.

Tracked all gun legislation and assisted staff in their preparations to present testimony; working with Senate Judiciary to protect the RTAA in the final collective outcome of the bills.

Worked with Uber lobbyists and collaborated with CEO Mora and McCarran International Airport to insert language regarding airport fees for “transportation networks.” Uber concepts have been amended into a taxicab bill; the airport language is included in tact.

Dean Schultz, RTAA Executive Vice President/COO, testified in Senate Finance in support of Elko’s SB 125 which provides funds for air service development.

Presentations • On May 12th, RTAA President/CEO gave a presentation at Good Morning Truckee, a community

forum presented by the Truckee Donner Chamber of Commerce, which included an informative presentation on new air service coming to RTIA and the vital role both Airports play in the regional economy.

• Staff is preparing for the 2015 Nevada Economic Development Conference that is hosted by the Western Nevada Development District (WNDD) and will be held on May 19-21, 2015.

board of trustees president/ceo andy wirth, vice chair ... boar… · rick murdock, secretary dean...

Documents