STATEMENT ISSUED BY CHARLOTTE CITY COUNCIL
June 25, 2013
As demonstrated in the resolution adopted by the City Council on June 10, 2013, the Charlotte City
Council remains committed to maintaining Charlotte-Douglas International Airport as one of the best
performing and the lowest cost major hub airports in the country.
Through the resolution, the City Council mandated that the City Manager fully evaluate all items of
concern that have been identified by Members of the General Assembly and those concerns noted in
the report by the consulting firm Oliver Wyman. Specifically, the City Manager is authorized to
implement best practices in the following areas:
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Airport finances
Contracts
Procurement
Human resources
Public safety
The City Manager is working collaboratively with the Aviation Director to implement the Council’s
directive, as outlined in the attached memo.
Rather than passing legislation to address these issues, Charlotte invites Members of the General
Assembly to join leaders from the region, and other stakeholders in providing input into the City’s
review as we work to ensure that the airport remains the most competitive hub airport in the U.S.
Kimberly McMillan
Director, Corporate Communications & Marketing
City of Charlotte
Direct: 704-336-2643
Cell:
704-408-0100
Main: 704-336-2396
FAX:
704-336-6587
CITY MANAGER’S OFFICE
MEMORANDUM
June 25, 2013
TO:
Mayor and City Council
FROM:
Ron Carlee, City Manager
SUBJECT:
Airport Issues Evaluation Process
At their meeting on Monday, June 10, the Charlotte City Council adopted a resolution regarding
their position on the subject of Airport legislation/Airport governance. Point number 2 in that
Resolution reads as follows:
2. The City Manager is hereby directed to fully evaluate the following items, to act as
appropriate, and/or make recommendations to implement best practices in the following
areas:
a. Airport finances, ensuring that finances are completely separated from that of the
city/county/state.
b. Contracts, ensuring that the airport contracts and pays for only the services it
needs and uses, including services from the city, county, or state.
c. Procurement, ensuring that policies that are nimble and ensure low costs,
competitiveness and integrity.
d. Human resources, ensuring a compensation system that enables the airport to
attract and retain top talent.
e. Public safety and security, ensuring the most cost effective and functionally
effective method of service is provided inside the terminal as well as on the public
and airfield grounds.
In conducting this work, the City Manager shall engage stakeholders, …
Evaluation Process. This is to update you on this evaluation process. In consultation with the
Aviation Director, I have assigned Ron Kimble the lead role in this effort, working in
collaboration with Brent Cagle, Assistant Aviation Director. They have formed an evaluation
team consisting of additional Airport staff, Drew Riolo from the Airport Advisory Committee,
and members of Departments of Finance, Shared Services, Internal Audit, and Human Resources.
This team will develop the evaluation framework, timeline, and outcomes to accomplish the
Council’s directive. At this stage, the team sees the need to issue Request for Proposals and hire
third party consultants in the following three areas to make improvements that will benefit
Charlotte-Douglas International Airport and its customers:
Request for Proposal #1 – Airport Finance, Contracts, and Procurement Review
• Identify and/or recommend alternative credit rating/financial advisory service possibilities
• Recommend budgetary, operating and reporting system changes that can better align with
the Airport’s unique need of capturing costs, rates, and charges to private entities
• Recommend amended procurement/contract signatory authority limits
• Review current cost allocation methodology for direct and indirect costs charged to the
Airport, and recommend any improved methods
Request for Proposal #2 – Airport Compensation/Competitiveness/Benefits Review
• Conduct a market study and benefits package survey
• Recommend market pay and benefits adjustments based upon survey results
• Determine if a separate pay plan/pay system is needed, and if so, what that recommended
plan looks like
Request for Proposal #3 – Airport Public Safety and Security Review
• Evaluate alternative methods of delivering public safety and security to the Airport
• Recommend overall staffing levels for public safety and security at the Airport
• Coordinate services with other private entities and public agencies involved with public
safety and security at the Airport
• Determine sworn versus non-sworn positions in order to provide best service at lowest
cost
In addition, the team will benchmark (where appropriate) these services reviews against the
following airports, all of which are either the new American Airlines hubs, or are the top ten
airports in the United States:
Atlanta
Chicago O’Hare
Los Angeles
Dallas / Fort Worth
Denver
John F. Kennedy – NY
Phoenix
San Francisco
Las Vegas
Houston
Miami
Philadelphia
Washington National
Other comparable airports per each study
category
The airlines and other stakeholders at the airport will be invited to provide input into this process
as well the following:
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Neighborhoods surrounding the airport
Local governments in Mecklenburg County and adjacent thereto
Members of the General Assembly
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Chamber of Commerce
Regional Partnership
Stakeholders in the inter-modal facility
Public opportunities for input
It will be my intention to have these evaluations and reports completed by December 31, 2013 so
that proper consideration can be given to the results by the City Council at the earliest
opportunity.
cc:
Ron Kimble
Jerry Orr
Brent Cagle