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Home My WebLink About03/21/2018 - Meeting Minutesk 01 * 9 1 0 ik ANUMMERM22M kyj Lill MA 1111AI H 120 1 H ON I �� March 21 2018 Members Present: Larry Pirmock, Chair Wade Bitner Roger Boyer J.T. Mai -tin Karen Mayne Cyndy Miller Steven Price Excused: Theresa Foxlcy yarn Granato Jim Riding Mayor's Office: Mayor Jacqueline M. Biskupski Patrick Leary Department of Airports: Bill Wyatt, Executive Director Treber Andersen, Operations Superintendent John Buckner, Director of Administration & Commercial Services Ed Cherry, Chief Information Officer LuJean Christensen, Administrative Assistant Eddie Clayson, Director of Maintenance Marco Kunz, Attorney Allen McCandless, Director of Planning Kevin Robins, Director of Engineering Ryan Tesch, Director of Finance Craig Vargo, Police Chief Nancy Volmer, Director of Public Relations & Marketing Mike Williams, TRP Program Director Brad Wolfe, Commercial Manager Larry Pinnock called the meeting to order at 8:06 a.m. and welcomed Roger Boyer for his willingness to serve on the Board, JT Martin and Steve Price arrived at the meeting at 8:16 a.m. MINSEMEEM Bill Wyatt, Executive Director, updated the Airport g Board re Advisory gardincurrent events. I -- 1:1 Aiiport Ad,,kory Bomd Meeting, Mmuw� 21 March 201 � Wyatt stated that the Airport WrltinUes to have daily enplaticinents ranging from 22 -- 28 thousand passengers daily. The Ali -port is heading for a 25 1 - 26 million passenger year in a facility that was dcsi,';1ncd to handle 10 million passengers. It is incredibly crowded, the concessions and retail group have done great job of leasing every square centimeter of space for concessions. Wyatt informed the Board that he and key individuals, frorn the Airport and Delta Air Lines, traveled back to New York City to meet with the bond rating agencies. The meeting with the rating agencies is an immense undertaking where the current financial position is presented. The first rating agency report is back and it is maintaining the Airport as stable. Anticipate receiving the report from two more agencies in the upcoming two or three week tinieframe. This is an annual review that is required by the Dodd -Frank Act, Another bond issuance is anticipated in late summer. Currently the Airport is in a strong position and would not anticipate any significant change with the next bond issuance. Pinnock asked that Wyatt share the Popularity of the last bond issuance. Wyatt answered that the bonds were oversubscribed about 10 to I . Wyatt stated that it is important to acknowledge that Donnell Harvey and Andy Renner from Delta Air Lines attended the meetings to talk with the rating g agencies of the importance of Salt Lake in the Delta system. The point made was that Salt Lake was absolutely vital to the success of Delta's overall western strategy, Both Seattle and Los Angeles hubs are constrained and the geographic location of Salt Lake is perfect for feeding those hubs with larger aircraft and receiving aircraft from those hubs. ZIP 11JEUf7*Ts= [am= Mike Williams, Airport Redevelopment Program (ARP) Director, presented an update on the ARP (presentation on file). Main points included were: • CGMP #4 — Landside and Airside enabling status , • CGNIP #5 — Terminal/South Concourse West/Gateway status • CGMP #6 — Roadways"Parking Garage/Central Utility Plant status I In • CGMP #7 — Baggage Handling System status C.7 • CGMP #9 — Apron Paving —Taxilane 20/21 • CGMP #9A — SCW Apron Paving and Hydrant Fueling status • CGv-IP # 15 -- NCP Phase I enablimy 0 • Project statistics • Near terrn schedule • Overall Airport Redevelopment Program budget • Job progress photos • North Concourse secure area • North Concourse construction operational & staging area C� Patrick Leary arrived at the meeting at 8:27 a.m. Karen Mayne arrived at the meeting, at 834 a.m. Aitport Advisory Board Mecting Mumics 21 )Aarol 20 1.4 C. Airport Budget for FY2019 L-N Ryan Tesch, Director of Finance, SLCDA, presented an update on the Airport bLI(h-'Ct for FY 2019 (presentation on file). Main points included were: • Budget goals and objectives • Operating statei'ncnt forecast C� • Comparison of airline revenues • Cost Per Enplaned Passenger (CPE) • Comparison of concession revenues • Operating expenses for FY 2019 • New Capital Improvement Projects for FY 2019 Martin asked if Lyft and Uber were impacting parking revenues resulting in reduced revenues for the Airport. Tesch responded that Lyft and Uber have not impacted the parking revenues in Salt Lake City. Discussion ensued regarding industry trends and the trends Salt Lake City is seem'(, regarding parking, ground transportation and rental cars and the impact to revenues for the Airport. Wyatt stated that the general topic of ground transportation, Uber, Lyft, Transportation Network Companies, parking, and transit is a topic at all major airports because it is in such a period of change right now. A unique aspect of this airport is its proximity to the central city and for the foreseeable future will continue to have demand for parking. Martin inquired if Lyft and Uber have impacted the rental car market. Tesch answered that no impact has been seen. Miller stated that passengers come to Salt Lake for vacation, They arrive I at the airport and rent cars to be able to go to Park City to ski or southern Utah to visit the national parks. Wyatt stated that there is a unique situation in Salt Lake because tourism drives a rental business here. The motion was made by Cyndy Miller and seconded by Larry Pinnock to recommend the FY 2019 budget to the Mayor and City Council for adoption as presented. All votes were affirmative; motion passed. D. Future 5th Runway Allen McCandless, Director of Planning and Environmental, presented an overview of the future 5"' runway to the Board (presentation on file), Main points included were: • Existing runways 0 • Reasons a new runway may be needed • Aircraft operational delay • Reasons for operational delays • Potential improvements • New runways and taxiways should be evaluated • Passenger enplanements; Aiipmt Advis'ory N,ard Meeting Nfinums 21 March 2o 1'� Challenges for a new runway Z:� N/layne asked how many years does a runway last before repairs are needed. Wyatt answered that there are two kinds Of runways, asphalt or concrete. Concrete lasts longer but is more expensive to build than asphalt. The concrete runway will last about 40 years until major maintenance is needed. Bitner inquired its to what type or aircraft would be utilizing the new runway. Bitner asked if it would be high commercial or the lighter executive aircraft business. McCandless answered that would be one of the questioned answered with the master plan. The industry trend is for aircraft to get wider wing spans and longer fuselage. The runway would need to be able to accommodate larger aircraft. Bitner wondered how that would impact the executive aircraft business. McCandless answered that the executive aircraft are located on the east side of the airport and function separately from commercial traffic. A component of the master plan is to take a look at the general aviation, airports and how they will function. Mayor Biskupski stated that the map included with SB234 that was signed last week, took in some of the area the Airport would need for the additional runway. Biskupski stated that currently the Airport has been slowly acquiring the property and currently owns approximately 1. 80% of the property needed in order to construct the future runway. The Airport owns the property where the runway would be constructed, the City owns the property on which the NWQ development would occur and yet we have this additional overlay which will complicate matters. Martin asked on how long from conception to completion a new runway would take. McCandless answered that it would take approximately 15 to 20 years to complete a runway project. E. Concessions Prograrn RFP Update John Buckner, Director of Commercial and Administration, introduced Brad Wolfe, Commercial Zn , Managgerwho presented an update on the concession pro -rain RFP to the Board (presentation on file). I'vlain points included were: • Planning • Overview • Goals • Considerations • Scope and timing • Broader objectives • Outreach efforts over the past twelve months 0 Project RFP release dates Pinnock asked what the expectations as far as local versus regional would be. Wolfe responded that there are no set la[11111go percentage goals. The same ,10� that was used seven years ago on the 11 C� current program will be used in this RFP and that an ideal mix is requested. The concessionaires on the last RFP responded with good mix of local versus national brands. Wyatt stated that he 11 Ahpofl Advi"ovy Board McClung Miflutc'. 21 March 2013 has meet with as lot of the firms that are sure going to be bidding and they are all out pounding the streets in Salt Lake City to il"ISUre robust local participation. Miller stated that because of the active interest, as well as to ensure the integrity of the program is maintained, in the event board members are contacted (luring this process where should the board members refer there to. Wolfe stated that a paragraph will be sent to board members and elected officials that they can read if they get contacted. N/lartin asked if someone has an issue with the process how would that be resolved and where would they be referred. Buckner answered that the City has very prescribed procurement process, whether it is concessions, purchasing commodities or services, it is very prescribed. There is a process for which someone can lodge a concern or discuss the issue. The process is very structured and prescribed within City ordinance. Refer individuals to Marco Kunz or the City Attorney's office. JT asked if employee screening would be separate from passenger screening In the new facility. Wyatt stated that employee screening will be separate from passenger screening. It was presented to the airlines and we are talking with the airlines regarding a separate employee screening facility that would be separate from the terminal. During the last airline meeting there was a discussion regarding this and the airlines seemed favorable to the idea. Buckner stated that currently the Airport is in the early stages of designing a lot that would be remote for anyone that works airside. The employees would park in a different lot, go through a separate security screening area, get loaded on a bus and be delivered to the concourses. Mayor Biskupski left the meeting at 9:30 a.m. Larry Pinnock adjourned the meeting at 9:35 a.m. Z7 Larry Pinnock, Chair Date Jacqueline M. Biskupski, Mayor Date 5