HomeMy WebLinkAbout03/20/2013 - Meeting MinutesSALT LAKE CITY DEPARTMENT OF AIRPORTS
MINUTES OF ADVISORY BOARD MEETING
20 March 2013
Members Present: Natalie Gochnour (Vice-Chair)
Igor Best-Devereux
Mickey Gallivan
David Ibarra
Russ Pack
Mike Zuhl
Excused: Wayne Holland
City Council: Carlton Christensen
Mayor’s Office: David Everitt
Department of Airports: Maureen Riley, Executive Director
Deborah Loertscher, Management Support Coord.
Vice-Chair Natalie Gochnour called the meeting to order at 8:00 a.m., explaining that Chair
Wayne Holland would not be able to attend.
AGENDA
A. Minutes
The motion was made by Russ Pack and seconded by Mickey Gallivan to approve the minutes of
February 20, 2013, as presented. All votes were affirmative; motion passed.
B. Director’s Report
Maureen Riley, Executive Director, updated the Airport Advisory Board regarding current
events.
Alaska Air begins service from Salt Lake City on April 4, 2013. It will be subleasing
ticket counter space from Delta and operating from gates C-3 or C-5. Beginning service
will be to Seattle.
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TRAX begins service on April 14, 2013. There will be a media event on April 13th and as
details become available, the Board will be kept informed. There will also be a joint
Airport and UTA emergency training exercise related to security on the platform.
A taxicab hearing was held March 1, 2013, resulting in the Judge taking all motions
under advisement.
The Airline meeting (AAAC) was held the end of February. Airlines reviewed the
budget and expressed appreciation regarding how the budget has been managed, staying
relatively flat with the exception of higher costs for snow removal chemicals. The Board
Finance Committee also reviewed the budget prior to the Board meeting.
Riley informed the Board that Board Secretary, Deborah Loertscher, will be retiring and
April will be her last meeting with the Board.
C. FY14 Budget
Janine Christiansen, Director of Finance, presented to the Board the FY 2014 Airport Budget
(presentation and budget proposal on file). She expressed appreciation to her staff, particularly
Cassie Fairbourn, for their work in the budget preparation. Additionally, she thanked Kevin
Robins, Director of Engineering, and his staff for their work on the construction pieces of the
budget.
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The presentation included:
o Budget goals and objectives
o Operating statement forecast
o Operating revenues
o Comparison of airline revenue
o Concession revenues
o Operating expenses including salaries and benefits
o CIP program and new projects
In answer to Carlton Christensen’s question regarding the 50/50 balance between landside and
airline revenue, Riley indicated that every airport is different, but this is a very positive picture
and one that the airlines appreciate. The Airport generates considerable non-airline revenue, so
the ratio might be a little better than average. One reason Airport demographics are so good is
because there is no debt. Once bonds are issued and debt service enters into the equation, the
allocation changes significantly.
Natalie Gochnour asked what the history was for medical insurance rates remaining flat. Two
years ago the increase was 10%, last year 5%, and this year flat. Part of the reason is the
implementation of the HSA, which encourages employees to better manage their health care
costs, enabling the City to avoid an increase this year.
Christensen asked if the Airport anticipated doing any borrowing next year for the Terminal
Redevelopment Project. Riley indicated that the Airport does not anticipate issuing any bonds
for the next couple of years. The essential funding plan is to spend down Airport cash, then issue
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debt to repay itself, and spend that cash again. Right now, the approach is that there will be three
bond issues and each time the money will be spent and repaid. At the end of the program, the
Airport will expend its cash, basically serving as its own funding mechanism throughout the
program, saving on borrowing and financing costs.
Mickey Gallivan stated the budget presentation was thorough and well prepared. He
congratulated the staff on making it an understandable document and indicated the Board
Finance Subcommittee did not see any issues.
The motion was made by Mickey Gallivan and seconded by Igor Best-Devereux to recommend
approval of the budget as presented. All votes were affirmative; motion carried.
Riley stated the budget will be taken to the Mayor on March 25, 2013.
The next Board meeting will be held 17 April 2013.
The Board Vice-Chair closed the meeting at 8:45 a.m.
___________________________ ________________________
Wayne Holland, Chair Date
___________________________ _________________________
Ralph Becker, Mayor Date