BOARD OF TRUSTEES
Andy Wirth, Chair
Rick Murdock, Vice Chair
Nat Carasali, Secretary
Jerry Hall, Treasurer
Bill Eck
Lisa Gianoli
Adam Mayberry
Jenifer Rose
Jessica Sferrazza
PRESIDENT/CEO
Marily M. Mora, A.A.E.
EXECUTIVE VICE-PRESIDENT/COO
Dean E. Schultz, A.A.E.
GENERAL COUNSEL
Ann Morgan, Fennemore Craig
CLERK OF THE BOARD
Claire Johnson
RENO-TAHOE AIRPORT AUTHORITY
MEETING OF THE BOARD OF TRUSTEES
January 14, 2016
9:00 a.m.
Board Room, Administrative Offices
Second Floor, Main Terminal Building
Reno-Tahoe International Airport
Reno, Nevada
Items V, VI, VIII, IX and XII 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 – December 10, 2015 Board Meeting Minutes
VI.
APPROVAL OF AGENDA
VII.
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
Board Agenda
January 14, 2016 Board Meeting
Page 2 of 3
G.
H.
I.
J.
VIII.
Air Service Liaison
The Chamber Reno Sparks Northern Nevada
Reno-Tahoe International Airport Users Committee
Compensation Committee
CONSENT ITEMS FOR BOARD ACTION
A. #16(01)-01 Authorization for the President/CEO to Execute a Professional Services
Agreement for Design Work and Pavement Inspections for the 2016 Airfield and
Landside Pavement Management System Program at Reno-Tahoe International
Airport and Reno-Stead Airport, with Stantec, in the Amount of $240,800
IX.
ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION
A. #16(01)-02 Discussion and Possible Action on a Salary Adjustment for Fiscal Year
2014/2015 for President/CEO Marily Mora
X.
ITEMS FOR BOARD INFORMATION AND DISCUSSION
A. Presentation
1. Transportation Network Companies (TNCs) Status Update
B. Board Meeting Schedule
1. February 9, 2016
2. February 9, 2016
3. February 11, 2016
4. March 8, 2016
5. March 8, 2016
6. March 10, 2016
9:00 am
10:00 am
9:00 am
9:00 am
10:00 am
9:00 am
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
Board of Trustees Meeting
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
Board of Trustees Meeting
C. President/CEO’s Report
D. General Board comments, questions, and items for future Board meetings
XI.
PUBLIC COMMENT, if any – Limited to three minutes per person
XII.
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.
Board Agenda
January 14, 2016 Board Meeting
Page 3 of 3
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
2. Washoe County Administrative Offices – 1001 E. 9th Street, Reno
3. Reno City Hall – One East First 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
December 10, 2015
9:00 a.m.
MEMBERS PRESENT
Andy Wirth, Chair
Rick Murdock, Vice Chair
Jerry Hall, Treasurer
Nat Carasali, Secretary
Bill Eck
Lisa Gianoli
Adam Mayberry
Jenifer Rose
Jessica Sferrazza (via phone)
ALSO PRESENT
Marily M. Mora, A.A.E.
President/CEO
Dean Schultz, A.A.E.
Executive Vice President/COO
Ann Morgan
General Counsel
Claire Johnson
Clerk of the Board
MEMBERS ABSENT/EXCUSED
None
The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe
International Airport, Reno, Nevada. Chairman Andy Wirth called the meeting to order. The Pledge of
Allegiance was recited.
III. PRESENTATIONS AND AWARDS
A. Employee, Tenant and Special Recognitions
Chair Wirth introduced Brian Moore, Director of Human Resources, to announce the THRIVE
Most VALUE-able Player Award recipients for 2015. Each of these employees was nominated
by their co-workers and chosen because they represent the organizational values through their
daily activities and attitudes, and especially exude the qualities represented by the specific
THRIVE value for which they were selected. Mr. Moore recognized the following award
recipients: the entire Custodial Team - Teamwork for Results; Dawn Ralston, Warehouse
Assistant/Driver in Purchasing & Materials Management - Honesty and Integrity; Jim Liu,
Database Administrator in Technology & Information Systems - Respect & Recognition; Casey
Micone, Airport Firefighter in Fire & Rescue - Inspire & Innovate; Mark Jongsma, Sergeant in
Airport Police - Versatility; and, Kim Matthews, Marketing Coordinator in Marketing & Public
Affairs - Enthusiasm for Excellence. Next, Marily Mora, President/CEO, announced that the
recipient of the 2015 President’s Award is Ted Ohm, Facilities Project Manager in Facilities &
Maintenance. The President’s Award recipient is someone who “lives the values” – all six of
them – in their daily work life. All of the award recipients were recognized and presented with
their awards at the RTAA Holiday Party held on Saturday, December 5, 2015.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 2 of 17
Next, Chair Wirth introduced Rick Gorman, Chief Financial Officer, who asked Tony Osendorf,
Manager of Finance & Budgeting, and Alex Kovacs, Senior Financial Analyst, to join him at
the podium. Mr. Gorman stated he is proud to announce that the Reno-Tahoe Airport Authority
(RTAA) has received the Distinguished Budget Presentation Award for our Fiscal Year
2015/2016 budget. This is the 19th consecutive year that the RTAA has received this award,
which is presented from the Government Finance Officers Association, (GFOA). It represents
the highest form of recognition in governmental budgeting, and is a significant achievement by
the organization. While this award represents the collective efforts of every department at the
RTAA, the Finance and Budget department is responsible for coordinating this effort,
consolidating each department’s submission, and preparing the budget book and Board
presentations. Mr. Gorman presented the award to Mr. Osendorf and Mr. Kovacs, who
accepted it on behalf of the Finance and Budget Department.
Lastly, Chair Wirth called upon Dean Schultz, Executive Vice President/COO, to recognize Ray
Guzman, Sergeant in the Airport Police Department, for being a recipient of the 2015 Law
Enforcement Appreciation Award. Sergeant Guzman received this award from ASIS
International, Northern NV – Chapter #164. The award recognizes and honors law enforcement
personnel who have been selected by their agencies for their outstanding and exemplary service
to their community and to the department they serve. Sergeant Guzman was selected for the
award due to the care and compassion he showed for a 71 year old homeless and endangered
man in August of 2015. The man had been reported as missing to the Sheriff’s Department in
Pennsylvania by his family, and on August 4th, he was found wandering in the Airport. Mr.
Schultz related the heartwarming story of how Sergeant Guzman helped reunite the man with
his family in Pennsylvania. Sergeant Guzman expressed his thanks for the recognition and
stated that the true award is in knowing that the elderly gentleman is now safe and being cared
for by his family.
B. Introduction of New, Promoted and Retired Employees
Mr. Schultz introduced three new employees – David Zalbalza, Facilities Custodian in Building
Maintenance & Services, MaryAnn Methenitis, part-time Administrative Assistant for Human
Resources, and Walter Burgos, Facilities Custodian in Building Maintenance & Services. Mr.
Schultz also mentioned another new employee who could not be present at the meeting Randall Cartledge, Airport Communications Specialist in Operations & Public Safety.
Next, Mr. Schultz recognized two individuals on their recent promotions – Gary Purdum to the
position of Fire Captain and Collin Cavanagh to the position of Driver/Operator, both of whom
work in Airport Fire & Rescue.
C. Tenant Communication
None.
IV. PUBLIC COMMENT (limited to 3 minutes)
Two requests for public comment were received, both specific to agenda item 15(12)-49, and
therefore Chair Wirth specified these public comments would be taken when that agenda item is
heard.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 3 of 17
V.
APPROVAL OF MINUTES
On motion by Trustee Mayberry, seconded by Trustee Eck, which motion duly carried by
unanimous vote, the Board approved the minutes from the Board of Trustees meeting of November
12, 2015.
VI.
APPROVAL OF AGENDA
On motion by Trustee Rose, seconded by Trustee Carasali, which motion duly carried by
unanimous vote, the Board approved the December 10, 2015 Board of Trustees meeting agenda.
VII.
COMMITTEE / LIAISON REPORTS
Committee / Liaison reports were given by:
A.
B.
C.
D.
E.
F.
G.
H.
I.
VIII.
Finance and Business Development Committee – Trustee Jerry Hall
Planning and Construction Committee – Trustee Adam Mayberry
Airport Noise Advisory Panel – Trustee Jenifer Rose
Community Outreach Committee (COC) – Trustee Jenifer Rose
Stead Liaison – Trustee Bill Eck
RSCVA Board – Trustee Nat Carasali
Air Service Liaison – Trustee Rick Murdock
The Chamber Reno Sparks Northern NV – Marily Mora
Reno-Tahoe International Airport Users Committee – Trustee Adam Mayberry
CONSENT ITEMS FOR BOARD ACTION
A. #15(12)-47 Authorization for the President/CEO to Negotiate Final Terms and Execute a New
Five-Year Commercial Hangar Lease for a Single-Commercial Aeronautical Service Provider
(S-CASP), with One (1) Two-Year Option to Extend, Between Deeside Trading Company, Ltd.
and the Reno-Tahoe Airport Authority
On motion by Trustee Hall, seconded by Trustee Murdock, which motion was duly carried
by unanimous vote, the Board approved Agenda Item #15(12)-47 as follows:
Authorized the President/CEO to Negotiate Final Terms and Execute a New Five-Year
Commercial Hangar Lease for a Single-Commercial Aeronautical Service Provider (S-CASP),
with One (1) Two-Year Option to Extend, Between Deeside Trading Company, Ltd. and the
Reno-Tahoe Airport Authority.
IX.
ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION
A. #15(12)-48 Approval of Action Item Proposed by Staff and Discussed at the November 3, 2015
Reno-Tahoe Airport Authority Board Retreat for Initiation of a Reno-Tahoe International
Airport Master Planning Process
Trustee Sferrazza made reference to the estimated cost of $1.5 - $2 million for this type of
master plan and that the RTAA’s share of the cost is shown to be approximately $125,000. She
asked if the Airport has already received the Federal Aviation Administration (FAA) grant
monies for this project. Jamie McCluskie, Vice President of Planning, Engineering &
Environmental Management, responded no, but that staff met with the FAA Airports District
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 4 of 17
Office (ADO) staff on November 23rd to discuss accelerating the grant and the concept was
verbally supported. Upon approval by the Board to move forward, the next step will be to
advertise a Request for Qualifications (RFQ). There is the potential for the RTAA to receive a
$2M grant, which is a typical cost in the industry, though the exact cost will not be known until
proposals are received. As a point of reference, Mr. McCluskie stated that the FAA Advisory
Circular has a set of requirements on how to solicit for professional based services and this
would require a qualifications based solicitation. Trustee Sferrazza restated and Mr. McCluskie
confirmed that it would need to be a firm experienced in airport master plans. Trustee Murdock
asked for clarification that the $2M fee will be subsidized by a government grant. Mr.
McCluskie responded affirmatively, stating that Airport Improvement Program (AIP)
entitlement money is available, and that the Airport’s share of the cost could be covered with
Passenger Facility Charge (PFC) funding. Trustee Murdock asked what the Airport’s share
would be. Mr. McCluskie stated that the Airport’s cost would not be known until the scope of
the project is negotiated, however, 93.75% would be covered by grant funding and the Airport’s
share would be 6.25%.
Trustee Mayberry reminded the Board that this is an action item to give staff direction to move
forward on the process, not approval of a contract or firm. In addition, as Chair of the Planning
and Construction Committee, Trustee Mayberry asked that the Committee be given the
opportunity to review the RFQ once it’s prepared and prior to advertisement. He also stressed
that whatever is done, the Board must not impede the ability of the Airport to grow and develop.
Chair Wirth concurred that this action is to advance the initiative and that the Board reserves the
option to comment and participate in an open process. Mr. McCluskie indicated that as part of
the next steps in the process, staff will bring the RFQ to the Planning and Construction
Committee.
Trustee Hall asked about the range of $1.5 to $2M for similar projects, and where the similar
projects were located, what the size of the airports were, and if those airports were constrained
physically like this Airport. Mr. McCluskie said the cost depends on various scenarios, such as
where the airport is in its capital program and the complexity of the airport. Staff looked all
across the country at different size airports, from medium sized to some of the smaller sized
hubs. He also referenced his own experience with two airport master plans that were in the
range of $1.5M and less. Trustee Hall pointed to the importance of not redoing significant work
already done at the Airport and asked if that work could simply be updated by the consultant.
Mr. McCluskie responded that there is a lot of good information available from scenario based
planning that’s been done in the past, and most recently an analysis of the Geographic
Information System (GIS) has provided inventory data and a backbone for an Airport Layout
Plan (ALP). As part of this process, it is anticipated there will be savings on the ALP
component as it is already available with the GIS, and therefore would not have to be redone.
He said there will be a phased approach to the scope, and the areas that will be focused on are
just those needing to be updated. Trustee Hall asked if there will be a general scope of work
included in the RFQ and will the proposers give their take on a scope of work. Mr. McCluskie
responded affirmatively, indicating that the RFQ will be developed based on the guidelines
provided in the FAA Advisory Circular, with the inclusion of some components as optional
services, such as sustainability. In follow up, Trustee Hall asked if when the RFQ is presented
to the Planning & Construction Committee, will the full scope of work be included in the RFQ.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 5 of 17
Mr. McCluskie responded that no, that would occur as part of a refinement of the scope during
the negotiations process. Trustee Hall referenced a summary of the requirements for
qualifications based selections that was provided by Dave Lazo, Manager of Engineering &
Construction, at the November Board meeting. Mr. McCluskie responded that this can be
provided to the Planning & Construction Committee as part of the RFQ review. Mr. Schultz
added that staff can identify the issues and concerns that need to be addressed in the master
plan, rather than a fully fleshed out scope of work. In response, the consultants can submit
solutions based on their knowledge, experience, and creativity as to how they would address the
identified issues.
On motion by Trustee Carasali, seconded by Trustee Gianoli, which motion was duly carried by
unanimous vote, the Board approved Agenda Item #15(12)-48 as follows:
Approved the Action Item Proposed by Staff and Discussed at the November 3, 2015 RenoTahoe Airport Authority Board Retreat, and Directed Staff to Move Forward with the Initiation
of a Reno-Tahoe International Airport Master Planning Process.
B. #15(12)-49 Review and Discussion of President/CEO Marily Mora’s Performance for Fiscal
Year 2014/2015 and Possible Action on Discretionary Bonus and Salary Adjustment for Fiscal
Year 2014/2015
Chair Wirth opened a 5-minute public comment period. John Howitt, a board member of the
Reno-Tahoe Aviation Group (RTAG) and a tenant at GA East, spoke on item #15(12)-49, on
behalf of RTAG. Mr. Howitt discussed his opposition to a salary increase and bonus for the
RTAA President/CEO, stating it was beyond the community standard, as it was greater than the
managers of the three governing bodies whose duties and responsibilities are wider in scope,
who supervise more employees, and who manage much larger budgets.
Chair Wirth thanked Mr. Howitt, and stated for the record that Mr. Howitt was not in attendance
at the November 24, 2015 meeting of the Compensation Committee.
Next, Chair Wirth called upon Bob Meurer, President of RTAG to give his public comment.
Mr. Meurer confirmed that as a group, RTAG supports Mr. Howitt’s statements and that their
issue is not with the staff as they are very happy with what staff is doing. He said that perhaps
what they feel is that “we are in the cadillac range when what we should be driving is a chevy”.
Finally, Mr. Meurer took the opportunity to mention Operation Santa Claus and reminded
everyone that the event is on Saturday, December 12th at 1:00 pm at Hangar 9. Chair Wirth
thanked Mr. Meurer for his comments.
Chair Wirth closed the public comment period, and opened the Board’s discussion on this item
with the following. First, he stated that the Compensation Committee, comprised of himself
and Trustees Carasali, Gianoli, and Murdock, met on November 24, 2015. The timeframe for
the performance review in question is July 1, 2014 through June 30, 2015, and that this is very
important to note as the conversation is framed up. Chair Wirth said that the CEO, within that
timeframe, maintained an agreement which was affirmed by a previous Board and that her
performance targets and objectives were documented, stated clearly, and were the basis for the
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 6 of 17
determination of her incentive bonus as presented by the Compensation Committee. This item
comes before the Board with a unanimous vote of the Compensation Committee, affirming the
item as presented. Secondly, Chair Wirth said that he trusts all Trustees had the opportunity to
review the compensation comparisons as provided by the Human Resources staff. He said there
is a need to further review and refine those, and the data is subject to further discussion and
input from fellow Trustees.
Chair Wirth went on to say that of note is the fact that this topic was specifically and discreetly
brought to the press by one of the Board members. Chair Wirth acknowledged that he was and
remains disquieted by the comments in the press, not because they stated a dissenting point of
view. The Chair stated that he has engaged and actively supported informed, dissenting
opinion, and that he feels strongly that the strength of the Board is based on the diversity of its
background and points of view. Rather his concern is entirely and exclusively a function of the
fact that a Trustee provided comment to the press prior to the matter being presented to the
Board for a complete review of this action item, and before all materials had been presented. As
discussed in the Compensation Committee, during a line by line item review of the CEO’s
performance, Chair Wirth indicated he has had the honor of working with airport leadership
from the Vancouver Airport, Denver International Airport, and Salt Lake City Airport, and that
he built an airport outside of Montreal that was a former strategic air command base. In short,
he has a fair amount of experience and he doesn’t speak as a new person to the topic. Chair
Wirth stated that the intent was met, the objectives were met, and no items of deficiency could
be found. The performance of the CEO has been stellar and outstanding, and crossed many
different channels of responsibility from the utmost safety and security of the Airport, all the
way to interest and intent to support cargo and commercial development, and support of general
aviation. Chair Wirth then opened the discussion up to further comment before moving into a
motion relative to the item.
With regard to this item, Trustee Hall indicated there are two distinctly separate issues that need
to be addressed. One is the issue of the performance bonus and he said he believes that to be
contractual. He said that he was serving as Chair of the Board when Ms. Mora was recruited,
and she survived a grueling day of interviews and showed her stripes to convince the Board that
she was the right person for the job, and she did just that. The contract was negotiated and more
recently the goals and objectives have been set by the Compensation Committee. Trustee Hall
said he is very willing and happy to support the findings of the Committee as it relates to the
incentive bonus.
Trustee Hall stated the second issue is the salary adjustment and whether the RTAA should be
compared with a small or medium hub airport. Trustee Hall then referenced Mr. Howitt’s and
Mr. Meurer’s public comments, noting that they are happy with staff and like what staff is
doing. Trustee Hall stated that staff is kept happy by compensating them in a way that keeps
them here, and treating them professionally. Trustee Hall advised that he is very happy with
what the CEO has done and the significant changes to how the Airport operates, while at the
same time maintaining the safety and security of our passengers. What he sees when he walks
through the terminal is a great Airport, small, medium, or large doesn’t make any difference.
It’s a great Airport.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 7 of 17
Trustee Hall asked that the Board take into consideration the compensation from other local
entities. He added that he was ready to make a motion to approve the bonus because it is
contractual and because he believes the CEO has met all the requirements.
Chair Wirth thanked Trustee Hall for his comments and invited a motion with respect to the
bonus recommendation, while directing staff to work on additional information on comparable
salaries, specifically as it relates to a salary adjustment to the base compensation.
Chair Wirth then recognized Trustee Rose. Trustee Rose reiterated that the employment
contract was negotiated prior to her appointment to the Board. With that said, Trustee Rose
feels a 20% bonus is very aggressive and she is not sure that had she been involved at the time
whether she would have agreed with that amount. However, when performance goals are
established and it is said this is the potential bonus if all goals are met, a carrot is put out there.
This Airport, Ms. Mora and her executive staff, did not just reach the carrot, they reached the
carrot, that ate it and they digested it. And now people are saying that perhaps we should take
the carrot back. Ms. Mora exceeded every single goal well over 100% and when goals are
exceeded, the bonus should be paid.
Trustee Gianoli stated she concurs with a lot of the comments made, and agrees with Trustee
Rose that this was a commitment made before she was on the board, albeit aggressive, and if it
was being looked at again it might be done slightly differently on the bonus aspect. Trustee
Gianoli asked for comparables that better fit the Airport. She also requested information on
compensation from other government entities.
Trustee Murdock said that being one of the longest standing Trustees, who has seen where the
Airport was when the CEO started, where it went and where it’s going now, he believes that
Ms. Mora has hit every one of the things the Board has asked her to do. He said it is a trying
time in Reno, NV, and even as we come out of the recession, we have to make the opportunities
here. Ms. Mora is making the most of opportunities and is making opportunities happen. He
said he totally agrees with what fellow Trustees have said, agrees with the bonus, and supports
the direction that Trustee Hall has suggested.
Trustee Mayberry stated he certainly supports the discussion but that comparables should be
with Ms. Mora’s peers at other airports, and not local city and county governments. Trustee
Mayberry stated that there is no cookie cutter approach to airports and the Board needs to keep
that in mind. Some are heavy in cargo, some are heavy in land mass, and Reno is heavy in land
mass. To give a broad brush of small versus medium hub airports and passenger levels is
disingenuous. Trustee Mayberry also said he appreciates Mr. Meurer’s comments about the
chevy and the cadillac, but said if he’s going to have a cadillac he’s going to pay for a cadillac,
and so he’s paying for the cadillac, and he has no problem doing so.
Trustee Carasali said if you have an organization that you want to operate at the top level, you
need to hire a top level leader as CEO, and he believes that was done by the search committee
who hired Ms. Mora. The CEO was given goals that were met or exceeded, with a 20% bonus
promised if all goals were met. He stated that in his opinion it is not overly aggressive because
when an organization wants to be at the A plus level then it needs to hire the A plus employee,
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 8 of 17
and compensate them accordingly. Trustee Carasali stated we have a top-level, A-plus player
who is performing at the height of her game and has met or exceeded all her goals for fiscal year
2014/2015.
Chair With referenced the recent meeting with Delta Air Lines headquarters, and stated he was
very thankful to have Ms. Mora at the meeting, because it was made clear prior to the meeting
that there are over 150 airports that are seeking the additional capacity that Reno is seeking. He
is glad we have someone who is not average, and to be successful in our strategic objectives and
achieve the mission of this organization, we have to have a high caliber individual.
Trustee Eck stated he was on the Board when Ms. Mora was hired, and she has always been
stellar. When she showed up at Stead field when he was the Chairman of the Board of
Directors and then the Director of Operations, he nicknamed her the “fixit lady”. When Ms.
Mora touched down wherever she was going, things began to go straighter because she listened
to people, she talked with people, and she understood what was being said. He was very much
aware of how much she would be paid when she was hired, and given the circumstances she has
faced, she has earned every cent.
Trustee Sferrazza stated she wished to comment on some of the remarks made by Chair Wirth.
As many know, in her past life she served on the City Council for 12 years, and was subjected
to a public body and the transparency that goes along with that public body. She said she finds
it truly offensive that Chair Wirth would try to muzzle a member of a public body and a public
board that has a fiduciary responsibility to the public and its users. Trustee Sferrazza stated she
believes we have an obligation to be transparent and responsive to the public, and to that end
she would like Chair Wirth to release the emails that have been exchanged and that he sent the
entire board advising them not to respond to the media. In addition, when you look at the staff
report regarding the Compensation Committee it says there was a review of salary comparisons
of data gathered in January 2015. That data was not included in the staff report and
comparisons were not received until last evening. Trustee Sferrazza said the staff report was
made public several days ago giving the opportunity….(Trustee Sferrazza’s cell phone cut
out)….Trustee Sferrazza stated the total compensation package is $350,000 with a $240,000
salary, the PERS rate of $67,000, a $46,000 bonus, a $7200 car allowance, and health insurance
benefits. She believes the public had a right to know how Board members feel about a
recommendation from a Committee on the CEO’s salary. Trustee Sferrazza also stated she
believes that Ms. Mora has done a great job for the Airport on such things as air service, what is
being done with the community outreach committee, the cleanliness of the Airport, and the staff
at the Airport who are truly amazing.
Chair Wirth thanked Trustee Sferrazza for her comments, and stated transparency has been and
is maintained on this Board of Trustees. He said that he remains committed to that and stands
by his every action, word and email that he provided as being professional, transparent and most
certainly consistent with the protocols of the Board.
Trustee Eck advised he believes that, in looking at this Board, he doesn’t believe any could be
called “shrinking violets”, and the Trustees are not being pushed into any corner.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 9 of 17
Trustee Hall said that one of the places where the Board has gotten hung up is the goals and
objectives that have been set. Ms. Mora did meet and exceed the goals and that is a contractual
issue. Trustee Hall said when he looks at a CEO or someone who is a leader in an organization
he considers other dimensions that you don’t always see, such as responsiveness,
communication, community involvement, creativity, team building and broad based leadership
of the Board, staff and the community. He believes that those are dimensions that Ms. Mora has
and she has plied them well in the work she had done here. When he got the recommendation
from the Compensation Committee, he leavened that with these dimensions, and what he came
down to is, she earned it, we said we would pay it, and we need to do that.
Trustee Mayberry asked if the Board has considered the goals for this current fiscal year. Ms.
Morgan responded yes, the goals were adopted in May of 2015.
Trustee Rose asked if it would be possible for Legal Counsel to speak to the contractual
obligations here. She further pointed out that Trustee Hall mentioned a couple of times that we
are contractually obligated and she would like clarification as to whether the Board is truly
contractually obligated to pay 100% of the bonus because Ms. Mora hit 100% of the goals. Ms.
Morgan responded affirmatively.
Trustee Rose asked if the weights meant that if Ms. Mora hit 100%, that would equal 100% of
bonus. Ms. Morgan said yes, that is how the Board addressed the issue. Chair Wirth
commented that he recognizes the challenge that this provides the three new Board members
that were not seated during the timeframe in question.
On motion by Trustee Hall, seconded by Trustee Eck, which motion was duly carried by 8 ayes
and 1 opposed vote, the Board approved the amended Agenda Item #15(12)-49 as follows:
Approved a 20% Discretionary Bonus in the amount of $45,760.00 based on President/CEO
Marily Mora having achieved 100% of the Performance Goals Set for Fiscal Year 2014/2015.
Chair Wirth asked if there was any further discussion on the direction to staff to provide more
information on comparable salaries. Trustee Carasali asked Legal Counsel what maximum
increase could be awarded by the Airport Authority. Ms. Morgan responded that is totally up to
the Board’s discretion. Chair Wirth referenced a similar question that was asked during the
Compensation Committee meeting, related to a range and the median being 4 to 5%. The
maximum allowed under Management Guidelines is 5%. Trustee Rose said that she recalls the
employment contract states up to 5%. Chair Wirth said that in the Compensation Committee
meeting there was a great amount of diligence given to this process and that he was
disappointed not to see members of the public in attendance, as meeting notes don’t necessarily
capture every comment, but in that construct, he asked Human Resources leadership to provide
input on the percentage, and what is the general accepted methodology within the organization.
Trustee Murdock asked whether any local taxes are used in the funding of the Airport other than
the passenger facility charge (PFC). Ms. Mora responded by saying the Airport does not use
any local taxpayer dollars and that the Airport generates its own revenue. Chair Wirth asked Mr.
Gorman if he could affirm that and Mr. Gorman responded yes. Trustee Sferrazza asked how
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 10 of 17
much federal funding has been received for the Airport for capital improvements. Chair Wirth
asked over what period of time and Trustee Sferrazza responded over the last 10 years. Ms.
Mora said she would be happy to provide that information at a later time as she does not have
that information off the top of her head. Trustee Sferrazza asked if those are taxpayer dollars.
Chair Wirth responded that the funding comes in a number of different forms and if Trustee
Sferrazza is specifically asking for 10 years’ worth of funding that’s not self-generated, he will
ask the RTAA CFO to provide that data. Trustee Sferrazza said she believes those are taxpayer
dollars. Chair Wirth responded that the Board will wait to see what Mr. Gorman comes back
with.
On motion by Trustee Hall, seconded by Trustee Carasali, which motion was duly carried by
unanimous vote, the Board approved the amended Agenda Item #15(12)-49 as follows:
Deferred Approval of a Salary Adjustment for President/CEO Marily Mora for Fiscal Year
2014/2015 to the January 2016 Board Meeting or Until Such Time as Comparable Data on
Salaries of CEOs in the Small Hub Category, and if Appropriate the Medium Hub Category as
Defined by the FAA, are Received for Review and Discussion by the Compensation
Committee, to Include Local Executive Director/Manager Salaries of Other Agencies in
Washoe County.
Ms. Mora indicated that she is very humbled and grateful for the incentive bonus awarded by
the Board, and she considers the bonus an award for the team having achieved the goals. She
considers this a report card for the organization and it is an A report card. She said she is very
fortunate to be surrounded by a stellar senior leadership team, each of whom is brilliant in their
own department and their own skills, and who come with vast experience. As seen this
morning, the RTAA celebrated its own staff, and that every single employee at both Airports
gives their energy, time, and dedication to make this a great organization. Ms. Mora said it is a
collaborative effort and fiscal year 2014/2015 was a tremendous year. It was a year that the
Airport saw two new airlines come into the Airport, international air service was reinstated after
not having it for 15 years, and tremendous obstacles were overcome to see the $4M investment
in the customs building become a reality so that the Volaris flights could be handled, which
flights have now grown to 3 times per week. Staff worked for 15 years to get JetBlue and
succeeded in getting JetBlue into the Airport. Ms. Mora said it is easy to point to these
achievements because they were celebrated in a very public way, but the things not seen are in
the RTAA’s core mission of safety and security, such as passing an FAA Part 139 inspection
with no discrepancies, receiving the best ratings ever on a customer service survey, and ending
the fiscal year with financial results that were almost one dollar under what was promised in the
budget and promised to the airlines. Those across the board achievements made it a
phenomenal year, and Ms. Mora thanked the team. She said what she is most proud of is what
the RTAA has done internally, stating the environment outside cannot be great until there is a
great environment internally. She thanked the Board for their confidence and energy in meeting
the strategic goals and guiding principles, and stated the Board has backed the RTAA staff all
the way.
Trustee Carasali made additional comments regarding the value of reviewing compensation for
public entities such as cities and counties in relation to the Airport. First, they do not have any
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 11 of 17
competition in their revenue base as they can just go out and increase taxes. The Airport is
more entrepreneurial and in competition with 400+ Airports throughout the country for revenue,
which means it has to operate as a private enterprise situation. This staff has be working harder
and smarter than other average airports to work with the airlines to get more flights, and thereby
increase the revenue base. Trustee Carasali stated the Airport’s revenue base is not guaranteed
as is the city’s or county’s, and therefore the Airport’s operation is much more complex. To
compare what we pay the Airport executive, versus what you would pay a city or county
manager, or the RSCVA executive, is comparing apples and elephants.
Chair Wirth thanked Trustee Carasali for his comments, and offered a recap of this board item
by saying that he felt it was a good transparent process and that he trusts everyone from the
public had input on the items that were acted upon, and that Trustees felt an open dialogue was
welcomed and that a diversity of opinion was supported. On behalf of all the Trustees, Chair
Wirth thanked Ms. Mora for her outstanding work.
At this point, Trustee Eck excused himself from the meeting.
C. #15(12)-50
2014/2015
Acceptance of the Comprehensive Annual Financial Report for Fiscal Year
Mr. Gorman presented the Comprehensive Annual Financial Report for the Airport Authority
for Fiscal Year 2014/2015, which covers the period of July 1, 2014 through June 30, 2015. He
introduced Scott Nickerson who is a partner with Crowe Horwath, the RTAA’s independent
auditor. Crow Horwath was selected through a public process and is now in the 2nd year of their
5-year contract with the RTAA. Mr. Nickerson specializes in governmental and non-profit
accounting.
First, Mr. Gorman explained that as part of the Nevada Revised Statutes (NRS), each year an
independent audit must be completed of the Airport Authority and those results formally
accepted by the governing body. In addition, because the Airport Authority accepts federal
grants and participates in the Passenger Facility Charge program, those dollars are subject to an
audit every year and one of the functions that Crowe Horwath performs is an audit of the
RTAA’s compliance with federal grant terms and conditions, and the responsibilities of the
passenger facility charge. Upon examination by Crowe Horwath, all of the RTAA’s financial
statements were looked at and a complete external audit was conducted. Crowe Horwath
concluded that the financial report which was provided to the Board does fairly represent the
financial position of the Airport Authority. There were no material weaknesses or significant
deficiencies in the annual report.
In addition, the external auditors looked at the financial operations to see if any best practices
should be recommended. Last year, there were four recommendations on best practices
identified and all four recommendations were implemented during FY 2014/2015. There were
no additional best practices recommended in the FY 2014/2015 audit.
Mr. Gorman described the new accounting reporting requirements that need to be implemented
as a result of the RTAA’s participation in the public employees’ retirement system (PERS). On
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 12 of 17
August 2015, PERS issued an actuarial study to determine each participant’s net pension
liability. As of June 30, 2014, PERS had an unfunded liability of $10.4 B. The RTAA’s share
of the unfunded liability is $29.4M or 0.3% of the total system’s underfunding. Therefore, the
RTAA has booked a liability on its balance sheet showing an obligation to fund $29.4M of
future pension obligations based on a present value basis. Mr. Gorman described in detail how
these new accounting rules affect the RTAA’s balance sheet and income statement.
Chair Wirth asked on the $29.4M, what discount rate is being used on the market value pricing
(MVP). Mr. Gorman responded that it is 8%. Mr. Nickerson of Crowe Horwath commented
that virtually every airport had a similar liability, and that this is not a budgetary issue, because
the Airport is contributing at a certain rate as directed by PERS. Over a period of time, this
liability, if all assumptions are correct, would be zero.
Mr. Gorman then reviewed the RTAA’s financial results for FY 2014/2015 including statistics
related to passenger traffic, operating revenue, operating expenses, income statement, airline
cost per enplaned passenger, the total assets and deferred outflow of resources balance sheet,
and the liabilities, deferred inflows and net position balance sheet.
Chair Wirth thanked Mr. Gorman for his presentation and asked if any portion of the pension
liability is a current liability. Mr. Gorman responded that it is an extended liability. Mr.
Nickerson added that the pension liability from an actuarial standpoint assumes a 20 to 30 year
time to amortize that liability. From the unrestricted standpoint, the key is maintaining a
positive balance. Every airport authority is looking for ways to generate unrestricted revenue
sources. Maintaining and sustaining enplanement levels and levels of revenue and expenses for
small and medium hub airports is a win.
Trustee Carasali asked about the unrestricted liabilities, and how Mr. Gorman foresees that
growing or decreasing on a year to year basis moving forward. Mr. Gorman responded that as
far as the actual operations of the Airport Authority, it will grow and that as the operations
improve, there will be a positive impact on the retained earnings because more revenues will be
generated than actually expended. He said the challenge will be with the potential fluctuation in
the pension liability based on mortality, investment returns, etc., and that pension liability could
have some volatility to it. Mr. Gorman stated he feels very comfortable about the Airport
operations, but the size and scope of the pension liability is a bit of an unknown. Mr. Nickerson
stated that in the context of airport authorities, the RTAA employer contribution rates are higher
than other states, and that is a PERS decision on how it is funded. Another unique aspect about
airport authorities is there are both hazardous and nonhazardous job positions, and therefore
some positons have higher rates because the employees are conducting activities that are more
difficult such as public safety related tasks. From a budgetary standpoint, Mr. Nickerson said
airport authorities are really focusing on whether or not PERS makes changes to the
contribution rate. If the contribution rate is raised, the Airport Authority will be paying more
cash into the plan. Theoretically, that will lower the liability over time, but from a cash flow
standpoint, airport authorities are focusing on the biennial adjustments that the PERS might
make to the contribution rates.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 13 of 17
Trustee Mayberry asked what the threshold is between a small and medium hub airport. Mr.
Schultz responded that it is a floating number. The breakpoint is .25% of total enplanements
recorded for the prior federal fiscal year for all enplanements nationwide. If an airport has less
than a quarter percent of the national enplanements, then the airport is designated a small hub.
Ms. Mora clarified that it is reevaluated every two years, and that RNO was a medium hub, but
became a small hub in the fall of 2013. Chair Wirth added it virtually has to be a relative
measurement to the total enplanements in the country, and therefore would have to float based
on capacity and therefore enplanements.
Trustee Gianoli gave accolades to Mr. Gorman and his staff, saying that the financial report is
an amazing document, and that it portrays the strength and stability of the organization. The
information provided in the document is phenomenal and easy to understand.
Trustee Sferrazza asked about the funds shown on page 121 and where those funds come from.
Mr. Gorman responded those funds are federal grant monies that the Airport Authority receives
associated with approved capital projects. Next, Trustee Sferrazza said that, then for this year
and in follow up to the earlier discussion about federal money, on July 1, 2014, this is just
reflective of July 1, 2014 – June 30, 2015 and is $26M. Mr. Gorman responded that the $26M
represents the amount of total active grants that are currently pending. The amount that was
actually received in the year was about $15M overall. Page 121 shows the current active grants
and what was received during the current fiscal year. Trustee Sferrazza then referred to the
percent of participation, and asked what the 93.75 means. Mr. Gorman responded that of the
total project cost, the grant will pay 93.75% of the total project. Trustee Sferrazza then asked
where the majority of federal monies come from, and whether the majority was from the
Department of Transportation or Homeland Security. Mr. Gorman stated that the vast majority
of the grants fall into two categories. The largest one is the FAA Airport Improvement Program
(AIP) grant program, and those monies are primarily dedicated to airfield and taxiway
improvement projects, and also the noise program in the past. Mr. Gorman added that the
RTAA does receive monies from the Transportation Security Administration (TSA) that helps
pay for a portion of the law enforcement presence at the security checkpoint and the three
canine teams. Trustee Sferrazza asked how much was spent on the Part 150 or quieter home
noise program. Mr. Gorman responded he did not have that figure in front of him, but that he
could provide additional information on the overall grants associated with the noise program at
a later time. Finally, Trustee Sferrazza asked if the PERS contribution rate for this year is still
holding at 28% for general employees, and if that is an employee/employer contribution or if is
it paid 100% by the employer. Mr. Gorman indicated that 28% is paid for regular employees,
40.5% is paid for public safety employees, and all amounts are 100% paid by the employer.
On motion by Trustee Carasali, seconded by Trustee Gianoli, which motion was duly carried by
unanimous vote, the Board approved Agenda Item #15(12)-50 as follows:
Accepted the Comprehensive Annual Financial Report for Fiscal Year 2014/2015.
D. #15(12)-51 Approval to Revise the Fiscal Year 2015/2016 Reno-Tahoe Airport Authority
Board of Trustees Calendar to Change the Dates of the January 2016 Committee and Board
Meetings
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 14 of 17
- January 19 and January 21 – Current Schedule
- January 12 and January 14 – Proposed Schedule
Ms. Mora reminded the Board that in July 2015, the Board voted on the FY 2015/2016 Board
meeting calendar. The current calendar calls for the January 2016 Committee and Board
meetings to occur on January 19 and 21 respectively. Staff is seeking Board approval to
change those dates to January 12th for Committee meetings and January 14th for the Board
meeting.
Chair Wirth asked that the record reflect that Trustee Sferrazza disconnected from the
conference bridge and is no longer on the line, and that Trustee Gianoli stepped out of the
Boardroom.
On motion by Trustee Mayberry, seconded by Trustee Rose, which motion was duly carried
by 6 ayes and no opposing votes, the Board approved Agenda Item #15(12)-51 as follows:
Approved a Revision to the Fiscal Year 2015/2016 Reno-Tahoe Airport Authority Board of
Trustees Calendar to Change the Dates of the January 2016 Committee and Board Meetings
to January 12 and January 14, 2016, respectively.
E. #15(12)-52 Appointment of Two New Members to the Reno-Tahoe Airport Authority
Community Outreach Committee – Glenn Carano and Daniel Farahi
Trustee Rose disclosed that her company currently holds the contract to supply ink and toner
cartridges for the Atlantis and is up for re-approval next year, and therefore recused herself from
the vote on Daniel Farahi. In addition, Trustee Rose also disclosed that her company is in the
process of submitting a proposal to the Eldorado/Silver Legacy properties, and therefore
recused herself from the vote on Glenn Carano.
Chair Wirth asked that the record reflect that Trustees Sferrazza and Gianoli were not present
for the vote.
On motion by Trustee Carasali, seconded by Trustee Mayberry, which motion was duly carried
by 6 ayes, no opposing votes and 1 abstention, the Board approved Agenda Item #15(12)-52 as
follows:
Appointed Glenn Carano and Daniel Farahi to the Reno-Tahoe Airport Authority Community
Outreach Committee.
X. ITEMS FOR BOARD INFORMATION AND DISCUSSION
A. Presentations
1. None.
B. Board Meeting Schedule
Chair Wirth referred to the schedule of upcoming meetings.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 15 of 17
1.
2.
3.
4.
5.
6.
January 12, 2016
January 12, 2016
January 14, 2016
February 9, 2016
February 9, 2016
February 11, 2016
9:00 am
10:00 am
9:00 am
9:00 am
10:00 am
9:00 am
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
Board of Trustees Meeting
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
Board of Trustees Meeting
C. President/CEO’s Report
Ms. Mora referred the Trustees to the written President/CEO Report included in their Board
binders. She highlighted the recent news conference held by TSA with the intent of pushing
membership in the TSA precheck. It was discovered on the eve of the news conference that
TSA is actually closing the precheck registration location in Reno, and rather than a news
conference it evolved into a page 1 news article in the Reno Gazette-Journal. The Airport has
stepped in and is providing an interim location for precheck registrations to take place. It will
open on December 22nd and will be located on Airport between Allegiant and Delta Air Lines in
the ticketing area. More information will be provided and TSA has promised to hold a news
conference to promote the interim location.
Ms. Mora recognized Tina Iftiger, Vice President of Airport Economic Development, on her
recent appointment to serve as Chair of the Desert Research Institute’s Dandini Research Board.
Also noted in the President/CEO Report is the December 2nd meeting with the General Aviation
(GA) community and the CEO’s Advisory Group on the GA minimum standards. There was a
really good turnout and more progress will occur on this initiative.
Next, Ms. Mora also brought attention to the fact that the RTAA is working in partnership with
Squaw Valley to bring the Boyd International Aviation Conference to the region in 2016. It
was recently announced that we are one of three finalists to be a location for this important
conference that brings in numerous top level CEOs from all the airlines. It will be an excellent
opportunity to showcase our region. The dates of the 2016 conference align with the National
Championship Air Races, and therefore will provide an opportunity to invite airline executives
to the Air Races.
Ms. Mora referenced the first session of the UAS Outreach program that was held during the
first week of December, to educate the community on the rules and regulations of UAS use.
This first session was attended by representatives of several news media outlets.
Finally, Ms. Mora asked Brian Kulpin, Vice President of Marketing and Public Affairs to
provide the latest information on the upcoming Operation Santa Claus event.
The second
annual event hosted by the RTAA and RTAG will be held on Saturday, December 12th from
1:00 – 2:30 pm. Mr. Kulpin indicated the event will be held at Hangar 9 in the GA West area
this year due to the Atlantic Aviation ramp construction that is currently underway.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 16 of 17
D. General Board Comments, Questions, and Items for Future Board Meetings
Chair Wirth asked each Trustee for any comments, questions, or items for future Board
meetings that they may have.
Trustee Rose spoke briefly in regard to community outreach and referenced that with the help of
the Airport, the COC hosted the Western Nevada Development District tour, board meeting, and
private dinner last evening. Mr. Kulpin and his staff assisted with the event, Ms. Mora gave a
presentation, there were tours of the FAA Tower, and County Manager John Slaughter
presented the strategic plan for Washoe County. There was a tremendous turnout, with elected
officials from numerous counties in attendance, and an email list was started to get them
involved in the RTAA’s community outreach efforts to promote new flights and other Airport
initiatives.
Trustee Hall said that having served as an appointed public official, he wanted to recognize that
what the Board is going through today and what they may go through in January is sometimes
very difficult for appointed staff. He expressed his thanks to Ms. Mora for the way she has
conducted herself during this process. Ms. Mora echoed the importance of being transparent
and indicated that great strides have been made during the last year and half in that regard.
Trustee Carasali voiced similar sentiments by stating that the process followed in today’s
meeting regarding the items on the agenda was very transparent and he expressed his gratitude
to Chair Wirth for leading that.
Trustee Murdock agreed that the process was very transparent and that likewise, it is the way
the Airport operates.
Chair Wirth commented that transparency has become a bit of a trick word used by consultants
and investment analysts, and stated he invites any criticism or support of same. Transparency
can be, has to be, and needs to be a hallmark of the Board, their actions, and the processes.
Chair Wirth further stated that he is quite certain that good process has been observed from the
Committee’s review in a detailed line item basis of Ms. Mora’s goals. Chair Wirth said he is
quite confident in that process and that he serves at the behest of this Board of Trustees. If at
any point a Trustee feels that his/her opinion is thwarted, he hopes the Trustee will advise him,
Chair Wirth said there has never been one moment that his intent is to thwart, divert, or cloak,
or the word that was used today, muzzle anybody’s voice on the Board. He said he was
saddened to hear that accusation and challenges it openly, and he opened the floor to further
comment on that. He said he wanted to offer that as the mores of this Board; how the Board
members act, how they work with each other, and how they handle the critical items that are
very important to their constituents, staff, and the public that fly in and out of this Airport. He
said that this is his commitment to his fellow Trustees and serving them as Chair.
There were no further comments.
XI.
PUBLIC COMMENT
None.
Meeting of the Board of Trustees
December 10, 2015 Brief of Minutes
Page 17 of 17
XII.
ADJOURNMENT
There being no further business, the meeting was adjourned at 11:27 am.
___________________________________
Chair Andy Wirth
ATTEST:
___________________________________
Secretary Nat Carasali
*** 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:
To:
From:
Subject:
January 6, 2016
Memo: # 16(01)-01
Chairman & Board Members
For: January 14, 2016 Board Meeting
Marily M. Mora, A.A.E., President/CEO
AUTHORIZATION FOR THE PRESIDENT/CEO TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT FOR DESIGN WORK AND
PAVEMENT INSPECTIONS FOR THE 2016 AIRFIELD AND LANDSIDE
PAVEMENT MANAGEMENT SYSTEM PROGRAM AT RENO-TAHOE
INTERNATIONAL AIRPORT AND RENO-STEAD AIRPORT, WITH
STANTEC, IN THE AMOUNT OF $240,800
STAFF RECOMMENDATION
Staff recommends that the Board authorize the President/CEO to execute a Professional Services
Agreement (PSA) for design work and pavement inspections for the 2016 Airfield and Landside
Pavement Management System program at Reno-Tahoe International Airport (RNO) and RenoStead Airport (RTS), with Stantec, in the amount of $240,800.
PURPOSE
This action requests authorization for the President/CEO to execute a Professional Services
Agreement for design and inspection services for the 2016 Pavement Management System
Program. The services will evaluate the existing pavement conditions and establish the
prioritization and timing of pavement remediation to ensure safe airfield and landside operations.
This action is 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, and the Guiding
Principles of Safety and Security and Financial Integrity, as adopted in the RTAA Fiscal Year
(FY) 2014-2018 Comprehensive Strategic Plan.
BACKGROUND
In 1996, the Federal Aviation Administration (FAA) implemented revised eligibility
requirements for sponsors receiving federal grants. Specifically, sponsors are required to have a
current Pavement Management System (PMS) program in place for the ongoing evaluation and
maintenance of federally funded airfield pavements. To comply with FAA requirements, a
consulting firm is retained annually by the RTAA to provide for the continuity of the airfield
pavement inspections and updating of the Pavement Condition Index (PCI) for this program.
The PMS program provides for annual field inspection and update of the pavement condition
database for the evaluation, programming, and budgeting of pavement remediation activities.
Design work for airfield and landside pavement capital projects is conducted based on the prior
year assessment for construction in the current fiscal year. The airfield pavement inspections are
conducted on a rolling three year inspection cycle of areas identified as critical to airport
operations. This rolling inspection sequence allows for areas of concern to be addressed in a
logical and phased remediation program. In this manner, the pavement condition is assessed and
tracked on a long-term basis, with construction and maintenance projects programmed and
budgeted from this system.
PSA – 2016 Pavement Management System Program
January 14, 2016 Board Meeting
Page 2 of 3
# 16(01)-01
Similarly, the RTAA has also implemented a Landside Pavement Management System for areas
outside of the Aircraft Operations Area (AOA) which are not eligible for federal grants. This
program, through annual inspections, evaluates the condition of various landside pavements,
provides recommendations for reconstruction and maintenance, and generates cost estimates for
a multi-year rehabilitation program. The evaluation ranks pavement areas in priority for
rehabilitation for programming and budgetary purposes.
DISCUSSION
The Request for Qualifications (RFQ) for design and inspection services was publically
advertised and Statements of Qualifications (SOQ) were received on November 13, 2014, from
the following firms:
•
•
•
•
Applied Pavement Technology
Michael Baker International
NCE
Stantec
An evaluation committee comprised of RTAA staff reviewed the submittals and determined
Stantec as the most qualified firm for the project. The evaluation was based on the qualifications
and experience requirements stipulated in the RFQ. The RFQ was structured for the Consultant
to provide FY 2014-2015 services, with options for two additional years of services (FY 20152016 and 2016-2017) at the discretion of the RTAA, for a potential total of up to three years.
This proposed agreement for calendar year 2016 would exercise the second year option of the
solicitation.
The scope of services for 2016 was generated based on the program requirements stipulated by
the RTAA, and the corresponding fee was negotiated with Stantec. The services consist of design
work for 2016 construction contracts, pavement condition field inspections, update of the
Pavement Condition Index (PCI) database, determination of the Pavement Classification Number
(PCN), Aircraft Classification Number (ACN), update of the airfield and landside network
mapping, generation of Pavement Management System (PMS) reports, cost estimates, exhibits,
and program recommendations for future phases of pavement maintenance and rehabilitation.
The 2016 agreement consists of airfield pavement inspections (annual update), airfield pavement
repairs and rehabilitation (2016 design - Phase 11), landside pavement inspections (annual
update), and Reno-Tahoe International Airport (RNO) landside pavement rehabilitation (2016
design). In 2015, fifteen additional airfield and landside pavement inspection areas were
incorporated into the Pavement Management System. These new areas consist primarily of
general aviation apron leaseholds that have reverted back to the RTAA for maintenance at the
expiration of the lease(s) and various landside pavement areas. This increased the areas under
inspection by approximately 40%. The scope of services and related fee were negotiated on this
basis.
Program Management and Construction Management (PM/CM) services are not included and will
be procured separately.
COMPANY BACKGROUND
Stantec has a local office in Reno and a regional office in Phoenix, Arizona. All of the work
associated with this project is expected to be performed by the staff based in Reno. Stantec has
PSA – 2016 Pavement Management System Program
January 14, 2016 Board Meeting
Page 3 of 3
# 16(01)-01
performed numerous airfield and landside pavement inspection and design projects for the RTAA
in the past. The local Stantec personnel have extensive experience in conducting pavement
inspections, phasing construction work, and coordinating runway closures at the RNO and RTS
airports.
FISCAL IMPACT
This agreement, in the amount of $240,800, will allocate $121,500 for the Pavement
Management System, and $119,300 for design work. The Airfield and Landside Pavement
Management Programs, totaling $240,800, are included in the FY 2015-2016 Capital
Improvement Projects (CIP) budget, with $250,000 allocated for the Pavement Management
System and design services. Construction work is not included in this agreement and will be
funded separately from a FY 2015-2016 CIP rollover from the airfield project deferred in 2015,
and additional FY 2016-2017 CIP funding for the 2016 construction.
COMMITTEE COORDINATION
This item is scheduled to be presented at the January 12, 2016 Planning and Construction
Committee meeting.
RECOMMENDATION
It is hereby recommended that the Board adopt the following motion:
“It is hereby moved that the Board approves the Professional Services Agreement for Design
Work and Pavement Inspections for the 2016 Airfield and Landside Pavement Management
Program at Reno-Tahoe International Airport and Reno-Stead Airport, with Stantec, in the
amount of $240,800, and authorize the President/CEO or her designee to sign.”
MMM/dl/cj
Board Memorandum
Reno-Tahoe Airport Authority
Date:
To:
From:
Subject:
January 6, 2016
Memo: # 16(01)-02
Chairman & Board Members
For: January 14, 2016 Board Meeting
Ann Morgan, Legal Counsel
DISCUSSION AND POSSIBLE ACTION ON A SALARY ADJUSTMENT FOR
FISCAL YEAR 2014/2015 FOR PRESIDENT/CEO MARILY MORA
COMPENSATION COMMITTEE RECOMMENDATION
The Compensation Committee recommends that the Board of Trustees (Board) approve an increase to
President/CEO Marily Mora’s base salary of 5% or $11,440.00 for a total annual base salary of
$240,240 for Fiscal Year (FY) 2014/2015, retroactive to July 1, 2015, in accordance with President/CEO
Mora’s contract.
BACKGROUND AND DISCUSSION
Pursuant to Ms. Mora’s contract, as amended, the Board is required to annually review Ms. Mora’s
performance. Following that review, Ms. Mora is eligible for annual increases in her salary at the sole
discretion of the Board. A copy of the contract and amendments is attached as Exhibit A. The
Compensation Committee, consisting of Chairman Wirth and Trustees Murdock, Carasali and Gianoli,
met on November 24, 2015 to review Ms. Mora’s performance. A copy of the information presented to
the Committee by Ms. Mora regarding her goals and performance is attached as Exhibit B. The
Committee received information regarding the base pay of other Airport Executives as well as the
organizational norm for Senior Management Executives at the RTAA. Based on the information
received, as well as Ms. Mora’s performance, the Committee recommended to the Board a salary
adjustment of 5% or an increase of $11,440.00 to Ms. Mora’s Base Salary. The Committee also asked
that the information regarding the base pay of other Airport Executives be updated.
The updated information on other Airport Executives’ base pay was received shortly before the
December 10, 2015 Board Meeting. At the Board Meeting, the Board noticed some confusion as to
whether Reno was a small or medium hub airport for purposes of selecting comparison airports. The
Board therefore asked that the Compensation Committee seek additional data regarding the base salary
of Airport Executives from small hub airports and, if appropriate, medium hub airports as defined by the
FAA. The Board also asked that the Compensation Committee be provided comparable data regarding
the base salary of local government managers.
On January 5, 2016, the Compensation Committee met to consider the additional data requested by the
Board. ADK Consulting and Executive Search (“ADK”) provided a report on Executive Leader
Compensation at comparable airports. ADK specializes in Airport Executive Searches. A copy of the
report provided by ADK is attached as Exhibit C. The Compensation Committee also received
information regarding the salary and benefits of local government managers. A copy of this information
is attached as Exhibit D.
AMORGAN/11198832.1/031669.0002
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Salary Adjustment for FY 2014/2015 - President/CEO Marily Mora
January 14, 2016 Board Meeting
Page 2 of 2
# 16(01)-02
The work done by a prior Board when it set the salary for the President/CEO position initially was
discussed, as was the breadth of the search. The Committee confirmed that the RTAA wants a high
performance President/CEO and believes that it has that person. The information received from ADK
showed that Ms. Mora was in the lowest quartile of the 28 airport authorities reviewed. Although a
question was asked as to whether the Committee should look at a full comparison of benefits when
looking at other airport authorities for comparison, the Committee felt that it had enough information in
the ADK report upon which to base its recommendation, and did not feel that the expense involved in
obtaining such additional information was warranted.
The Committee also reviewed the information provided relative to local government managers. The
differences between those positions and the position of an Airport Executive were discussed, including
the narrow niche of opportunities for airport executives, the limited pool of candidates, the significant
differences between the duties of an Airport CEO and other local government managers, and the
differences between an Airport Authority and an airport run by a city or county.
The Committee also discussed how important having a successful airport is to the community. The
economic impact of each commercial flight, as discussed in the University of Nevada Reno (UNR)
study, was specifically identified by the Committee.
Based on the Committee’s review of Ms. Mora’s performance, which it found to be superior in every
area, the information presented, and the comments received at the Compensation Committee’s meeting,
the Committee recommended a salary increase of 5% or $11,440.00 to Ms. Mora’s base salary.
Pursuant to Ms. Mora’s contract, this salary adjustment is retroactive to July 1, 2015.
FISCAL IMPACT
A salary increase of 4% was included in the FY 2015/2016 Budget. The $2,288.00 difference in salary
increase is completely absorbed by savings in the overall personnel budget due to vacancies and
significant savings in insurance premiums.
RECOMMENDED MOTION
It is hereby recommended that the Board approve the following motion:
“It is hereby moved that the Board approves a 5% increase to Ms. Mora’s base salary in the amount of
$11,440.00 for a total annual base salary of $240,240 for Fiscal Year 2014/2015, retroactive to July 1,
2015, in accordance with President/CEO Mora’s contract.”
AM/cj
AMORGAN/11198832.1/031669.0002
1/6/16 4:57 PM
EXHIBIT A
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT ("Agreement") is entered this — day of May, 2013, by
and between the Reno-Tahoe Airport Authority ("RTAA"), a quasi-municipal corporation (hereinafter
called "Employer"), and Marily Mora (hereinafter called "Employee").
WITNESSETH :
WHEREAS, Employer is a quasi-municipal corporation;
WHEREAS, Employer desires to employ Employee as its President/CEO on the following terms
and conditions;
WHEREAS, Employee desires to accept such employment with Employer on the following terms
and conditions, set forth herein;
NOW, THEREFORE, Employee and Employer, each in consideration of the covenants and
mutual agreements herein contained, agree as follows:
1.
SERVICES TO BE PERFORMED
Employer hereby employs Employee, and Employee hereby accepts employment by the Employer,
as Employer's President/CEO with full authority for the management of Employer's affairs including
without limitation those duties, services and requirements set forth in the Employer's bylaws, and subject
to the limitations specified by statute, ordinance, regulation, resolution and action of Employer's Board of
Trustees ("Board") or other governing documents of Employer. Employee agrees that during the term of
this Agreement Employee will devote Employee's best efforts to Employer, and shall faithfully and to the
best of Employee's skill and ability perform such executive, managerial or administrative duties as
Employer may specify from time to time, and shall at all times diligently and loyally serve and endeavor
to further the interests of Employer. Employee acknowledges and understands Employer's Board of
Trustees shall be responsible for, without limitation, establishing policy for the direction and operation of
Employer.
2.
TERM
The term ("Term") of this Agreement shall be for a period of three (3) years, commencing on July
I, 2013 and shall remain in effect until June 30, 2016 or until terminated by either party.
Notwithstanding the above and except as specifically set forth below, the parties recognize
that Employee is an "AT WILL" employee and serves at the pleasure of the Board in conformance
with By-Law #9170 of the Rcno-Tahoe Airport Authority Bylaws of the Board of Trustees. This
means that both the Board and/or Employee can terminate Employee's employment for any reason
or for no reason, subject to the requirements of Section 4, below.
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3.
SALARY AND BENEFITS
3.1
Salary. Commencing July 1, 2013, Employer shall pay Employee an annual salary of Two
Hundred Twenty Thousand Dollars ($220,000.00) (the "Salary") in equal installments, less all applicable
tax withholdings, on the regularly scheduled paydays of Employer.
3.1.1
Salary Increases. Employee shall be eligible for annual increases in the Salary in
the sole discretion of Employer's Board of Trustees
3.1.2
Bonus. Employee may be eligible for a discretionary, non-mandatory cash bonus
(the "Bonus") beginning June 30, 2014, and continuing on the same date each year thereafter during the
Employee's employment under this Agreement as additional compensation for Employee's services
rendered. The decision to award a Bonus shall be in the sole discretion of the Employer's Board of
Trustees. The Bonus, if any, shall be up to 20% of Employee's then applicable annual Salary and the
amount of the Bonus, if any, shall be determined in the sole discretion of the Employer's Board of
Trustees based on Employee's achievement of performance criteria and goals established by and provided
to Employee within 60 days of the date of this Agreement and Employee's performance for the purpose of
determining the bonus will be reviewed on a fiscal year basis (FY2013/2014, FY2014/20I5 and
FY2015/2016, respectively). The obligation to review Employee's performance shall be a mutual
obligation of the Employee and the Board of Trustees of the Employer and shall be a condition precedent
to any decision to award a bonus. The bonus shall be subject to all applicable withholdings and similar
taxes, and shall be paid within thirty days (30) afterward.
3.1.3
Relocation package. Employee will receive a one-time relocation package of
Twenty-Five Thousand Dollars ($25,000.00) to cover expenses incurred by Employee related to relocating
to the Reno/Sparks area from Employee's current location. In addition, Employer will grant Employee a
maximum of 5 consecutive working days of administrative leave to complete the move from Employee's
old residence to a new residence in the Reno/Sparks area. Such administrative leave is expressly
understood between the parties as not counting against Employee's vacation balance nor shall it be
considered lost time. The relocation check shall be tendered to Employee upon execution of this
Agreement.
3.2
Benefits. Employee shall be eligible for the following benefits:
3.2.1
Insurance Coverage. With respect to life insurance on Employee, Employee shall
receive life insurance equal to two times Employee's annual salary.
3.2.2
Auto Expense. Employer shall pay Employee a monthly automobile allowance of
Six Hundred Dollars ($600.00) per month. Employee shall be responsible for all expenses incurred
relating to the vehicle including but not limited to gas, maintenance, taxes, insurance, license fees and
registration.
Such automobile shall be registered in the name of Employee, not Employer.
Since
Employee owns and/or maintains such automobile in Employee's individual capacity, and not in
Employee's capacity as President/CEO of Employer, Employer assumes no liability with respect to this
automobile, and Employee agrees to indemnify Employer in the event that Employer is required to pay
any judgments or other amounts affiliated with such automobile, other than the monthly automobile
allowance provided for by this Section 3.2.2
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3.2.3 Business Expenses. Employer shall pay or reimburse Employee for all reasonable
business and travel expenses incurred by Employee in performing the duties hereunder, subject to
maintenance of appropriate documentation by Employee and review and approval by the Chairman or
Vice-Chairman of Employer's Board of Trustees. Business expenses shall be paid or reimbursed in
accordance with Employer's customary practices. Employee agrees to promptly submit any and all
expenses to Employer for reimbursement, and to provide any documentation that Employer may request
or require in order to substantiate the expense for which Employee seeks reimbursement. Employee
understands that the failure to promptly submit such expenses for reimbursement, or to provide any
documentation reasonably requested by Employer, may be grounds for the denial of reimbursement of an
expense.
3.2.4
Physical Exams.
Employee will have an annual physical examination performed
at the expense of Employer. Employer will only cover the initial exam(s) and any treatment expenses must
be borne by Employee through insurance or other means.
3.2.5
Medical, Dental, Vision, Long-term Disability Insurance, Flexible 125 Plan
Coverage, Deferred Compensation, and other Benefits. Employee shall be credited with a "benefits
bank" credit equal to the current cost of annual Preferred Provider Organization coverage for medical,
dental, vision, and long-term disability coverage for self and family. Employee shall chose the level and
type of coverage Employee desires using this "benefits bank" credit up to the maximum allowable from
among the following benefits - medical, dental, vision, long-term disability, matching deferred
compensation, additional or supplemental health and disability insurance currently offered by Employer,
and any other benefit developed by Employer and approved by the Board of Trustees.
3.2.6
Public Employees Retirement System (PERS) Contribution.
Employer shall
pay 100% of the retirement contributions to the Nevada Public Employee's Retirement System (PERS) for
Employee.
3.2.7
Workers'
Compensation
Insurance.
Employee
is
covered
by
Workers'
Compensation Insurance as mandated by State law. Employer pays the full cost of this insurance.
3.2.8
Employee Assistance Program.
Employee and
Employee's dependents are
eligible for up to 10 "family" visits per year to an approved Employee Assistance Program provider at the
expense of Employer, subject to any requirements imposed by Employer's benefits provider(s).
3.2.9
Vacation Leave: Vacation leave accrues at the rate of 8 (eight) hours/bi-weekly
pay period.
3.2.9.1 Employee may accrue up to 520 hours of vacation leave. If Employee's
vacation leave accrual exceeds 520 hours at the end of the last pay period of any fiscal year, Employee
will be paid for all vacation leave over this amount at that time.
3.2.9.2 Employee is encouraged to take at least two (2) weeks vacation each fiscal
year for the well-being and good health of Employee.
3.2.10 Sick Leave.
3.2.10.1
Employee may take sick leave for personal illness or injury,
pregnancy, childbirth, adoption, quarantine, dental, and health care provider appointments/tests.
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bereavement, funerals, care for a sick or injured family member (spouse, significant other, natural, step or
foster children, parents or parents-in-law, or any other equivalent person or legal dependent) and similar
purposes as sick leave is accrued.
3.2.10.2
Sick Leave accrual is subject to unlimited accrual and is accrued by
Employee at the rate of 4.6 hours/bi-weekly pay period.
3.2.11 Holiday Leave: Employee is granted the same holidays as those that are applied to
the majority of all Employers' employees.
3.2.12 Vacation and Sick Leave Usage Increments: Vacation and sick leave for
Employee are charged in increments of four hours.
3.2.13 FMLA Leave.
The Family and Medical Leave Act (FMLA) eligibility period is
based on a rolling year that begins with the first FMLA qualifying incident. Employee will be advised, in
writing, of such an occurrence. In general, FMLA leave will run simultaneously with other forms of leave.
Employee must use accrued regular vacation and sick leave before Leave Without Pay under the FMLA is
considered. Employee must provide sufficient information to the Benefits Coordinator to determine
whether Employee is eligible for FMLA and if she is requesting FMLA leave.
3.2.14 Court Leave.
Employee may serve on petit or grand jury or be a subpoenaed
witness as an RTAA employee without charge to any other type of leave. Employee may keep payments
from the court for petit or grand jury duty.
3.2.15 Post Employment Health Plan (PEHP).
3.2.15.1
Employer has established a Post Employment Health Plan (PEHP),
pursuant to Section 501 (c) (9) of the Internal Revenue Code permitting such plans. The purpose of the
plan is to provide for reimbursement of qualified post employment expenses for medical care, including
expenses for medical insurance, which are incurred by Employee during employment with Employer and
who has separated from employment with Employer. Employee will be enrolled in this plan immediately
upon starting Employee's position pursuant to this Agreement.
3.2.15.2
Employer shall make contributions on behalf of Employee through
the following funding sources:
3.2.15.2.1
Annually, each July Is1 hereafter, if Employee has accrued
sick leave balances in the amounts indicated below as of the last pay period in June, Employer shall
contribute the amount of accrued sick leave indicated below from Employee's accrued sick leave account
into Employee's individual PEHP plan account at 100% of Employee's salary rate of pay on June 3O'\ All
contributions will be made on a pre-tax basis.
Sick Leave Balance
Amount of Sick Leave Contributed to
Employee's PEHP Account
100-199 hours
5 hours
200-299 hours
10 hours
300-399 hours
25 hours
400-499 hours
35 hours
500-599 hours
50 hours
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8157970.1/031669 0002
65 hours
600-699 hours
700-799 hours
80 hours
800-899 hours
95 hours
900-999 hours
110 hours
1000 or more hours
150 hours
3.2.15.2.2
Annually each July Is1 hereafter, if Employee has accrued
vacation leave balances greater than two-hundred (200) hours as of the last pay period in June, Employer
shall contribute twenty (20) hours from Employee's accrued vacation account into the Employee's
individual PEHP plan account at 100% of Employee's salary rate of pay on June 30th. All contributions
will be made on a pre-tax basis.
3.2.15.2.3
Each July Ist hereafter, if Employee has not used the Floating
Holiday as of the last pay period in June, Employer will convert the Floating Holiday hours at Employee's
salary rate of pay on June 30th and contribute those funds to Employee's individual PEHP plan account.
All contributions will be made on a pre-tax basis.
3.2.16 With hold ings.
All compensation and benefits to Employee hereunder shall be
reduced by all federal, state, local and other withholdings and similar taxes and payments required by
applicable law.
3.3
Tuition Reimbursement.
Employee is eligible for tuition reimbursement for courses
related to Employee's employment or development at Employer.
•
Tuition reimbursement is available for normal and customary expenses (except
fixed
equipment)
associated
with
a
class,
seminar,
conference,
certification
program, or study course that is useful for the employee's current performance, but
is not a minimum qualification for the position nor required to maintain acceptable
job performance. The reimbursement is available for any course begun in a fiscal
year up to a maximum of $1,500. The Chairman of the Board of Trustees in
coordination with the Director of Human Resources will make the appropriate
determination, in their sole discretion, as to allowable expenses when Employee
requests pre-approval of a particular certification course or seminar.
•
Any class, certification course, conference or seminar fees or other normal and
customary charges paid for from scholarship, veteran's benefits, grants-in-aid, or
other sources are not eligible for reimbursement.
Reimbursement is only possible
for programs of study that have been approved for tuition reimbursement in
advance by the Chairman of the Board of Trustees in coordination with the Director
of Human Resources; attended, completed and/or passed (a grade of "C" or better or
a
Pass);
taken
professional
from
a
association;
recognized
and
the
and/or
accredited
employee
has
school,
provided
institution
all
or
necessary
documentation about costs and successful attendance/completion.
•
The program of study and all related work will normally be completed on the
Employee's own time unless the Chairman of the Board of Trustees has determined,
in writing, before the course is approved, that the course would be of significant
-5-
8157970 1/031669 0002
benefit for Employer. In this case, Employer may approve the use of limited work
time release (up to three hours of paid work time) during the Employee's normal
working hours.
Except as otherwise stated herein or required by applicable law, Employer has no obligation to
establish any Fringe Benefit plan not in existence on the date hereof or to provide to Employee any benefit
plan otherwise available to its exempt employees or Trustees. Any benefits not expressly included in this
Agreement though they may be included in the Management Guidelines or other Employee benefit plans,
including Gain-Share, are intentionally excluded.
4.
TERMINATION
4.1
Termination for Cause.
4.1.1
Generally. Employer may immediately terminate this Agreement upon the
occurrence of any of the following events in which case Employee shall only be eligible for those wages
and benefits required to be paid by state law in effect at the time:
4.1.1.1 By majority vote of the Board of Trustees for any act of dishonesty,
fraud, or gross negligence in the performance of services herein, after giving Employee written notice of
such act(s) and according Employee an opportunity to respond in writing or in person to Employer's
Board of Trustees;
4.1.1.2 Employee commits any unethical conduct in violation of Section
5.3; or
4.1.1.3 Failure of Employee, after receiving thirty (30) days advance written
notice from Employer, to cure any breach of this Agreement by Employee, including without limitation
any violation of any policy or procedure of Employer, or any breach of statutory or common law duty.
4.2.
Termination upon Death. This Agreement shall automatically terminate upon the death
of Employee, and Employer shall not be obligated to pay the estate, family, heirs or any other person
claiming under Employee any compensation or disability income for Employee's services to Employer
which would have been due to Employee after Employee's death, except for accrued salary and vacation
leave.
4.3.
Termination upon Disability
4.3.1 Definition. "Disability" shall have the same meaning as the definition of
"Disability" pursuant to any policy of disability insurance carried by Employer for the benefit of Employee
in force at the time of such Disability, or, if no such disability policy of insurance is then in force,
"Disability" shall mean the inability of Employee to provide ninety percent (90%) of the average level of
time and charges for services previously provided during a continuous three (3) month period
("Determination Period"), by reason of illness, accident or other mental or physical infirmity reasonably
expected to be of indefinite duration, at the end of which Determination Period Employee shall be deemed
to be Disabled.
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4.3.2 Termination upon Disability. In the event Employer finds Employee to be
Disabled, within the meaning of this Agreement, this Agreement shall automatically terminate as of the
date Employee is deemed to be Disabled and Employer shall not be obligated to pay the Employee, or any
other person claiming under Employee any compensation or disability income for Employee's services to
Employer except for accrued salary and vacation leave; however, any commercially funded disability
insurance benefit shall continue to the extent provided under such insurance contract notwithstanding such
termination. If Employer finds Employee not to be Disabled within the meaning of this Agreement, then
the employment of Employee shall continue.
4.4
Termination without Cause.
4.4.1 By Employer. Employer may terminate this Agreement without cause, at any time.
If such termination occurs within the first six (6) months of this Agreement, Employer shall pay Employee
severance in an amount equal to six (6) months of Employee's Salary along with all accrued, unused
vacation leave. If termination occurs after the first six (6) months of this Agreement, Employee shall
receive the same benefits as are provided under the Management Guidelines.
4.4.2
By Employee. Employee may terminate this Agreement without cause at any time
and Employer shall pay all accrued salary and accrued, unused vacation leave through Employee's noticed
termination date or upon such shorter notice as determined by the Employer's Board of Trustees.
4.5
Termination Activities
Employee will assist in completing the separation checklist and exit interview and
promptly return all RTAA issued equipment, keys, cards, identification badges, lockers, computers,
vehicles, pagers, telephones and similar items to the appropriate official(s). Employee agrees that, upon
termination of Employee's employment for any reason, Employee will certify in writing that all data and
property of Employer has been returned and not retained by Employee. Employee shall also complete all
necessary forms so that the personnel action effecting the resignation or termination can be processed.
5.
DUTIES AND OBLIGATIONS OF EMPLOYEE
5.1
Extent of Services.
Employee agrees that the duties and services to be performed by
Employee shall be performed exclusively for Employer and that Employee serves at the direction and
pleasure of the Board of Trustees. Employee further agrees to perform such duties in an efficient,
trustworthy and businesslike manner.
5.2
Policies and Procedures. In addition to the terms herein, Employee agrees to be bound by
Employer's policies and procedures as they may be amended by Employer from time to time. In the event
the terms in this Agreement conflict with Employer's policies and procedures, the terms herein shall take
precedence. Employee acknowledges having read Employer's policies, procedures and manuals and
agrees to abide by the same, including but not limited to Employer's policy of prohibiting personal use of
Employer's credit cards.
5.3
Ethical Conduct. Employee shall maintain the highest ethical standards. The parties agree
that Employee shall perform the Services for Employer and Employee's conduct at all times shall be in
strict accordance with the ethical and professional standards of the Nevada State Ethics Commission and
the provisions of the Nevada Ethics in Government Law. Should any of the aforementioned be violated
-78157970.1/031669.0002
Employer may terminate this Agreement by written notice of cancellation, which shall be effective
immediately upon delivery to Employee.
5.4
Compliance with Laws. The parties agree that Employee shall perform the Services for
Employer and Employee's conduct all times shall be in strict accordance with all applicable laws of the
United States and the State of Nevada, and all rules, regulations, policies and criteria established by the
Employer from time to time, relevant to Employee's performance of the Services.
6.
INDEMNIFICATION
Employer agrees to release and discharge Employee and shall indemnify, hold harmless and
defend Employee against all liabilities, losses, demands, claims, accounts, actions and proceedings arising
from acts or decisions made by Employee while performing the services for Employer to the fullest extent
permitted by law, but not with respect to claims by Employer against Employee for acts of dishonesty,
fraud, intentional misconduct, gross negligence, criminal acts or ultra vires acts. Employee agrees to
release and discharge Employer, and shall hold harmless and indemnify Employer for all liabilities, losses,
demands, claims, accounts, actions and proceedings arising or resulting from Employee breaching this
Agreement for any ground set forth in Section 4.1.1.
7.
MISCELLANEOUS
7.1
Assignment. Except as otherwise provided herein, Employee may not and shall not assign
any rights or delegate any duties under this Agreement.
7.2
Notices. All notices, demands, requests, and other communications required or permitted
to be served on or given to either party by the other shall be in writing and shall be delivered personally or
by United States mail, first class postage prepaid, certified or registered mail, return receipt requested.
Notices shall be addressed as follows:
If to Employer:
If to Employee:
RTAA
Marily Mora
P.O. Box 12490
Reno, NV 89510
4745 Sommerville Way
Reno, NV 89519
Attn: Chairman of Board
With a Required Copy to:
Fennemore Craig Jones Vargas
Attn: Ann Morgan, Esq.
300 East Second Street, Suite 1510
Reno, Nevada 89501
7.3
Confidentiality and Restrictive Covenants. Employee recognizes that by reason of
performing services for Employer, Employee will acquire confidential and proprietary information and
trade secrets concerning the operation of Employer, the use or disclosure of which could cause Employer
substantial and irreparable loss and harm that could not be readily calculated and for which no remedy at
law would be adequate. Accordingly, Employee covenants and agrees with Employer that Employee will
not at any time both during and after the term of this Agreement, directly or indirectly, disclose any secret
-88157970.1/031669.0002
or confidential information that Employee may learn, or, in performance of the services herein for or on
behalf of Employer, use such information in a manner detrimental to the interests of Employer, except
with the prior written consent of Employer or as such information is within the public domain or comes
within the public domain without any breach of this Agreement.
The term "confidential information" includes, without limitation, information not previously
disclosed to the public or to the trade by Employer's management with respect to Employer or any
products, facilities, methods, trade secrets and other intellectual property, software, source code, systems,
procedures, manuals, confidential reports, financial information, business plans, prospects or opportunities
with respect to Employer but shall exclude any information already in the public domain. Employee
recognizes and agrees that all copyrights, trademarks, or other intellectual property rights to created works
arising in any way from Employee's employment by Employer are the sole and exclusive property of
Employer and agrees to not assert any such rights against Employer or any third-parties. Upon
termination of this Agreement by either party for any reason, Employee will relinquish to Employer all
documents, books, manuals, lists, records, publications or other writings, keys, credit cards, equipment,
computer disks, and any other similar repositories of information or other articles that came into
Employee's possession in connection with the employment for Employer and to maintain no copies or
duplicates without the written approval of Employer's Board of Trustees. Employee agrees that, upon the
termination of Employee's employment for any reason, Employee will certify in writing that all such data
has been returned to Employer and not retained by Employee
7.4
Arbitration. Except as otherwise provided herein, Employee and Employer agree that
any disputes between Employee and Employer arising out of this Agreement, or the breach thereof, shall
be resolved by an impartial arbitrator in the State of Nevada pursuant to the voluntary labor arbitration
rules issued by the American Arbitration Association in effect in the State of Nevada at the date of the
dispute. The award rendered by the arbitrator shall be conclusive and binding upon Employee and
Employer. Each party shall pay its own expenses for the arbitration and the fees and expenses of the
arbitrator shall be shared equally. This arbitration requirement shall also apply to, without limitation, all
claims that could be brought by Employee at any time during or after the term of this Agreement under
federal, state and local statutory or common law, including: the Age Discrimination in Employment Act;
Title VII of the Civil Rights Act of 1964 (as amended); the Americans with Disabilities Act; the Fair
Labor Standards Act; the Family Medical Leave Act; the Employee Polygraph Protection Act; the
Employee Retirement Income Security Act; the National Labor Relations Act; any statutes or common
law regarding employment termination; any claims for wrongful discharge, wrongful arrest or
imprisonment, harassment or discrimination, intentional or negligent infliction of emotional distress,
invasion of right of privacy, or defamation. Employee expressly acknowledges and agrees that,
through this Section 7.4, Employee is waiving Employee's right to a jury trial concerning the above
claims.
7.5
Public Records. Employee understands and agrees that, in light of Employer's status as a
quasi-municipal corporation, certain records and/or information pertaining to Employee's employment
may need to be publicly disclosed. Employee agrees that Employer may publicly disclose any information
as may be required by law.
7.6
Governing Law. All rights and obligations hereunder shall be governed and construed in
accordance with the laws of the State of Nevada, without reference to conflicts of law principles.
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7.7
Failure to Enforce. The failure to enforce at any time any of the provisions of this
Agreement or to require at any time performance by the other party of any of the provisions hereof shall in
no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement (or
any part hereof) or the right of either party thereafter to enforce each and every provision of this
Agreement.
7.8
Captions. The captions contained in this Agreement are for convenience only and are not
intended to limit or define the scope or effect of any provision of this Agreement.
7.9
Counterparts. This Agreement may be executed in any number of counterparts and each
such counterpart shall be deemed to be an original, but all of which, when taken together, shall constitute
one Agreement.
7.10
Severability. If any provision of this Agreement is held to be invalid or unenforceable by
any judgment or decision of an administrative, arbitral or judicial tribunal, court or other body of a
competent jurisdiction, the remainder of this Agreement shall not be affected by such judgment or
decision, and the Agreement shall be carried out as nearly as possible according to its other provisions and
intent.
7.11
Entire Agreement. This Agreement contains the entire understanding between Employee
and Employer with respect to the subject matter of this Agreement and it supersedes any prior oral or
written agreements and understandings between them. This Agreement may be modified only in writing
signed by Employee and an authorized representative of Employer.
7.12
Presumption. This Agreement or any section thereof shall not be construed against any
party due to the fact that said Agreement or any section thereof was drafted by said party.
7.13
Separate Counsel. Each party has received the independent advice of its attorney prior to
the execution of this Agreement.
It is understood and agreed that the undersigned have not been
influenced to any extent whatsoever in making this Agreement by any representative, agent or employee
of an adverse party, or by any attorney, person or persons representing or employed by the undersigned,
and that this Agreement is entered into freely, voluntarily and knowingly.
-108157970 I/03I669 0002
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of $//L>
_, 2013.
"EMPLOYER"
RENO-TAHOE AIRPORT AUTHORITY
"EMPLOYEE"
-118157970.1/031669.0002
Fennemore Craig Jones Vargas
300 E. Second Street
Suite IS 10
Reno, Nevada 89501
(775) 788-2200
Ann Morgan
Direct Phone: (775) 788-2204
Direct Fax: (775) 788-2286
Law Offices
Denver
(303)291-3200
Las Vegas (702) 692-8000
Nogales
(520)281-3480
Phoenix
(602)916-5000
Reno
(775) 788-2200
Tucson
(520) 879-6800
amorgan@fclaw.com
September 3,2013
Marily Mora, CEO
Reno-Tahoe Airport Authority
Re:
Performance Criteria and Goals
Dear Ms. Mora:
Paragraph 3.1.2 provides that the RTAA Board will establish and provide to you within
60 days of the date of your Employment Agreement performance criteria and goals. Although
the Compensation Committee has met to work on these performance criteria and goals, it has not
completed that task. You have agreed to waive this requirement to allow the criteria and goals to
be set by the Board at a later time than called for in the Employment Agreement. Currently, it is
anticipated that this would occur at the October Board meeting. This will allow Trustee Arger to
attend and vote on the goals. If this accurately sets forth your understanding please confirm this
waiver and amendment to your Employment Agreement by signing below.
Sincerely,
FENNEMORE CRAIG JONES VARGAS
Ann Morgan
AMOR
I hereby agree to the above described waiver.
MARILY
8447282.1/031669.0002
EXHIBIT B
EXHIBIT C
Reno-Tahoe International Airport
Executive Leader Compensation
Program Review
_______________________________
Prepared By:
December 30, 2015
Executive Leader Compensation Program Review
The Reno-Tahoe Airport Authority owns and operates a system of airports to include Reno-Tahoe
International Airport (RNO) which is a small-hub commercial service public and military use airport
and Reno – Stead (RTS) airport a general aviation reliever airport. The system of airports is governed
by a nine member independent Board of Trustees that has overall administrative, development and
operational responsibility for the airports and does not receive local tax dollars.
As RTAA is a past client, ADK Consulting & Executive Search (ADK) is sharing information about
salary comparisons for the position of Executive Director/President & CEO/Airport Manager.
Compensation Review Approach
Research was centered on market data of airports of similar size, complexity, and governance.
Some of the data is relative to organizations that operate multiple airports, and some data is relative
to those airports that only operate one facility. The governance structure is imperative to consider
when evaluating the breadth of responsibility and authority that the leadership maintains at an
airport. Airports that are operated by City or County have different allocations and applications of
resources and practices. In a non-independent structure, the practices of the airport conform to the
established operating policy, processes and procedures of the City or County. Conversely, in an
Authority, the leadership establishes and is held accountable for the policies, processes and
procedures to adopt and execute with guidance and oversight of a Board. The data reviewed is from
airports operated similarly in governance structure to RTAA. It is customary in a non-independently
governed airport environment for salaries to be aligned with the span of responsibility within the
governing body's structure and to be reflective of comparable authority and liability. Broader
leadership scope and greater liability are present for senior leaders in an Authority governance
structure. Most Airport Authorities, including the Reno-Tahoe Airport Authority, have independent
responsibility for operations, financing, staffing and promoting the community asset to include
developing talent management practices that support regional growth and demand.
Assumptions
A component of being an effective business is having talent management practices in place that
support an airport’s interest to attract, retain and provide opportunities for the best talent. A
significant factor to attract and retain valuable talent is to maintain a compensation strategy that is
appealing and that supports growth and financial reward for contribution. Information that is
provided within this report assumes that the Reno-Tahoe Airport Authority desires to compensate
senior and executive staff members within the market and pay a wage similar to that of airports with
similarities in order to remain externally competitive in attracting and retaining leadership. This
report does not represent legal or financial advice beyond providing market information.
1
Background
The Ever-Evolving Role of Airport Director
Airports provide a critical element to the economic vitality of the local area and are an essential link
to the regional, national, and global economy. Airports serve as the gateway to the area and provide
the first and last impression of the community to users of commercial and general aviation. In the
United States, there are only 383 primary airports with commercial airline service. This equates to a
niche market for professional airport executives.
Individuals who have chosen airport management as a career are committed to the challenges and
opportunities of the industry. Most airports operate 24 hours per day, 7 days per week, and 365 days
per year. As a result, airport leadership must be readily available to manage normal operations as
well as crisis situations. In most cases, career advancement requires relocation to a new community
and results in direct personal and financial impact on the airport director and family. Airport
directors must be willing to adapt to their new home and be able to build new personal and
professional relationships.
The aviation industry operates in a diverse and dynamic environment. Airport Administration is
complex, with multifaceted requirements, and requires a high degree of expertise. The
responsibilities span the near-term, medium range and long range planning for the viability of the
economic asset for the region. The coordination between numerous business stakeholders, including
several regulatory agencies, is necessary to safely operate with efficiency and convenience as well as
compatibility with the environs. Since deregulation in 1979, the airline and airport industry have
evolved from a regulated, bureaucratic environment to a competitive marketplace driven by supply
and demand, profit and loss. As a result, airport leaders must think as business operators in the free
market, generating revenue and ensuring financial stability while preparing for the future demands
and opportunities, all while ensuring a safe and secure environment.
Initially, the primary focus of airport management was centered on the technical aspects of daily
operations. Airport directors often came from the military or the local community and the airport
was run much like a utility. Their responsibility was, for the most part, limited to the confines of
airport property. Prior to deregulation, airlines were more actively involved in the passenger
experience and airports were not looked to as a revenue and job creator that stimulated economic
development. Subsequent to deregulation of the airlines, airport directors had to become more
business oriented to create the new entrepreneurial climate necessary to operate a commercial
enterprise. Competition in the global economy and aviation industry has produced the current
culture in airport management. This new culture requires leaders to become an active member of
the economic development team in the region and to work closely with local business and political
leaders to promote community interests. As a result, airport directors have become key members of
local economic development efforts having a direct impact on the future of the local economy.
2
Airport directors must continue to evolve to properly serve and lead the airport community. The
field of airport management requires a unique combination of abilities, background and experience.
Airport leadership must be able to balance a diverse group of stakeholders to ensure the safety and
security of the travelling public. Senior executives must be able to build effective relationships with
the general public, the airlines, airside and landside tenants and users, rental car agencies, other
concession operators, numerous state and federal regulatory agencies, and the local community.
Leaders must be able to handle emergencies, respond quickly in a crisis, and function well under
pressure. The airport is held responsible for many functions outside of the immediate control of
airport management. To be successful, executive leadership must build a culture of customer service
and community engagement that transcends normal boundaries of authority.
Behavioral characteristics for an airport leader include the high energy level of a self-starter coupled
with patience and the ability to be methodical when working with safety, security, and regulations.
Airport leaders must be competitive and achievement-oriented, yet diplomatic and willing to
collaborate with others. He or she must be decisive, while not acting impulsively, and be able to act
independently while also seeking support to build consensus with an array of stakeholders who
sometimes have competing interests. The successful airport executive must be enterprising, able to
influence others, able to work with financial information and administrative procedures, have an
interest in community service and understand the importance of making a contribution to the
economic wellbeing of the region. The airport director must be well versed in finance, accounting,
administration, public relations, airside and landside operations, safety and security, planning,
development and construction, as well as the complexities of air service development. The leader
must not only be familiar with the community in which he or she works, but must also know and
understand the air trade industry and what is needed to position the airport to be successful into the
future. In recent years, many communities experienced changing levels of air service due to the
economy and airline mergers. This can have a ripple effect on local businesses within the community.
In the near term, airports will experience potential challenges due to regulations and capital funding
uncertainty; having a leader who is keenly aware of how best to position the airport for long term
success is critical for a community.
Airport directors fill a narrow niche with very limited opportunities to exercise their skillsets due to
the size of the airport industry. Many have undergraduate degrees in aviation management and more
are obtaining either an MBA or master’s degree in aviation. Their entire careers are, by choice, in one
of the smallest and most highly regulated industries.
Contrary to the more highly specialized position of airport director, most other department leaders
of cities or counties have more opportunities to move around within the local government or to other
similar positions in other cities and counties. Those same individuals, whether a CFO, Assessor,
Communications Director, Planning and Engineering Director, Human Resources Director, Attorney,
IT Officer, or other type of director, have opportunities to exercise their skillsets in both public and
private sectors.
3
There are different models of governance for airports. Initially, most airports were run by cities and
counties, and for various constructive reasons, there has been a growing trend to operate the airport
as a separate Authority. This structure allows the airport to operate more like a business enterprise
than a department of the city or county. Of the 383 commercial service airports, over 30% have
elected to become separate Authorities and over 45% of the top 100 commercial service airports are
now operated by an Authority.
Best practices for the attraction and retention of key personnel include periodic review of
compensation. Communities throughout the United States are in competition to attract and retain
the best talent for their airport.
Traditionally in the airport industry, executives have progressed in their career and transitioned to
new opportunities or different airports that provide a new challenge, for one reason or another, or
because the new opportunity holds a specific appeal.
Professional challenges that are enticing may include:







Opportunity to advance position and career
Reputation of the airport and/or governing body
Size of airport in passengers and/or cargo, and staff
Responsibility for a system of airports
Interesting challenges that, if met, can make a significant difference to the airport and/or
community
Business development and growth opportunities of the airport and community
Governance structure
o More autonomy and broader reach
o More supportive with the best interest of the airport at the forefront
o Not susceptible to instability from political elections
New opportunities may include:


Geographic location
o Desirable for quality of life
o Proximity to family and friends
o Climate
Compensation
o Salary
o Benefits
o Retirement program
o Incentive/bonus program
4
When establishing a compensation strategy for the leadership, it is necessary to take various factors
into consideration and the time to develop such a program is in advance of the executives being
enticed to consider other employment options. There are direct and indirect costs when replacing an
executive leader, so it is critical that an organization not only select the best qualified candidates
initially, but that the compensation program and the culture of the work environment appropriately
influence the individual to remain with the organization.
Compensation programs should factor in items beyond the base salary when evaluating the total
package, in order to be competitive as well as attractive for the executive. The salary structure in
relationship to comparable airports and the market and regional cost of living are considerations
along with other components. If there is a goal to retain an executive for a significant amount of
time, it is recommended that the employer consider the compensation programs of varying sizes of
airports that may offer desirable challenges or opportunities which could entice him/her to leave. Of
course there should always be consideration to any community sensitivities and the acceptance level
of customized programs for the airport leadership.
Senior Leader Position
There are various titles that represent the senior leader for the organization and although airports
and responsibilities can be unique, there are very similar expectations of individuals in this role
within an Authority structure, which too can be unique. The position that is equivalent to the CEO
for the RTAA may not always have a defined range; therefore, the best means to review market data
is to consider the actual salary currently being paid to the incumbent of the airport.
The salary information review for this position includes data for twenty-eight (28) commercial
service airports in addition to RNO. The most current year-end enplanement data is for year 2014.
RNO had 1,611,572 enplanements in 2014, and we identified fourteen (14) Airport Authorities with
enplanements less than RNO and greater than approximately 500,000 enplanements and fourteen
(14) Airport Authorities with enplanements greater than RNO and up to approximately 8,500,000. It
should be recognized that the difference in enplanement size typically has some correlation to
number of employees and size of facilities, although the overall principles of airport administration
and breadth of responsibility are similar.
Fourteen (14) of the Authorities identified operate a primary commercial service and also operate
one or more other airports. Of the twenty-eight (28) organizations researched, fourteen (14) are
known to provide some form of incentive program beyond base compensation for the senior leader.
Many of the incentive programs are centered on achievement of objectives although some of the
incentive programs are solely subjective.
5
Data Collection
Research was centered on market data of airports of similar complexity, size, and governance to as
great a degree as possible. Each airport environment is unique and there are varying degrees of
financial and human resource management, although many airport administrative and business
principles are similar. The type of governance and span of authority and responsibility are the most
significant factors when matching positions. The numbers reviewed reflects salary data from airports
with an Authority governance structure. In order to obtain an appropriate sampling of airports, we
use enplanement numbers as a means to identify comparable airports and review the salary of the
incumbent. Please keep in mind that it is not only commercial service enplanements that distinguish
an airport's impact to their community. Airports that serve general aviation, cargo activity or provide
commercial development deliver significant contribution to their region.
Analysis
When reviewing data points for the position of the senior leader of an organization similar to RTAA,
the competitive market salary range considering a 30% salary spread is $ 229,750 – $ 298,675 with
other benefits and opportunities being negotiated based on current Authority benefit offerings.
Future compensation opportunities can be based on performance and the adoption of an incentive
pay program with defined expectations and measurements has been found to enhance retaining
senior leadership and incentivizing them to continue to be a high performer.
Market data range rationalization
It is anticipated that it is in the best interest of RTAA to adopt a compensation strategy that best suits
its culture and this report assumes that the Reno-Tahoe Airport Authority desires to be within the
market and pay a wage similar to that of the competition in order to remain externally competitive
in attracting and retaining leadership.
Our philosophy in establishing a compensation package in the airport industry is to ensure that it is
comparable to the industry, as well as enticing for the Chief Executive Officer to 1) stay at RTAA and
2) be incentivized to continue to be a high performer.
6
Salary information for senior leader role at Airport
Average
Median
Highest Salary
Lowest Salary
Salary of all 28
Comparison
Airports
$ 264,287
$ 263,595
$ 398,549
$ 192,000
14 Airports < RTAA in
enplanements
14 Airports > RTAA in
enplanements
$ 242,741
$ 231,550
$ 398,549
$ 192,000
$ 285,832
$ 289584
$ 364,361
$ 211,754
Calculation of Deviation from Mean
Coefficient of Variation
(SD/Mean)
All
Average
Median
Highest
Lowest
$
264,287
$
263,595
$
398,549
$
192,000
<Smaller than
RTAA
$
242,741
$
231,550
$
398,549
$
192,000
Larger than
RTAA
$
285,832
$
289,584
$
364,361
$
211,754
SD - All
to
<RTAA
$
15,235
$
22,659
$
$
-
SD - All
to >RTAA
$
15,235
$
18,377
$
24,175
$
13,968
SD - All to
<RTAA
SD - All to
>RTAA
0.1
0.1
0.1
0.1
0.0
0.1
0.0
0.1
7
Average
$290,000
$280,000
$270,000
$260,000
$250,000
Average
$240,000
$230,000
$220,000
All
<Smaller than
RTAA
Larger than
RTAA
Median
$350,000
$300,000
$250,000
$200,000
$150,000
Median
$100,000
$50,000
$All
<Smaller than
RTAA
Larger than
RTAA
8
Highest
$420,000
$410,000
$400,000
$390,000
$380,000
Highest
$370,000
$360,000
$350,000
$340,000
All
<Smaller than
RTAA
Larger than
RTAA
Lowest
$215,000
$210,000
$205,000
$200,000
$195,000
$190,000
Lowest
$185,000
$180,000
$175,000
$170,000
All
<Smaller than
RTAA
Larger than
RTAA
9
Of the 14 airports with higher enplanement numbers than RNO, the current President/CEO salary of
$228,000 ranks near the bottom of the list between airport number 13 and airport number 14. In
other words, there are 13 airports in this grouping with a CEO salary greater than the RTAA for this
position and 1 airport with a CEO salary below the RTAA.
Of the 14 airports with lower enplanement numbers than RNO, the current President/CEO salary
ranks in the middle of that grouping. Specifically, there are 8 smaller airports with salaries greater
than the RTAA for this position and 6 smaller airports with salaries less than the RTAA.
For all 28 airports, 21 airports have the President/CEO salary higher than the RTAA and 7 have a
salary below the RTAA.
There is a wide range of salaries for the twenty-eight (28) airports with the lowest being $ 192,000
and the highest being $ 398,000. In at least fourteen (14) instances the employer provides an
incentive pay program beyond the base compensation. It is not known if the employer that currently
provides the lowest salary maintains an incentive program, although it is known that the employer
that provides the highest salary has provided subjective incentive pay in the past. A number of
organizations offer additional benefits to base pay such as: a vehicle or vehicle allowance, retention
bonus, insurance and pension contributions, generous vacation benefits, club memberships and in
two instances a home is provided including coverage of home expenses.
Closing
When negotiating a salary, there are various approaches. In some instances, individuals are brought
into an organization at the lower end of the salary range and in other instances their experience level
is taken into consideration. Once an individual is in their role, they are typically moved to a salary
within the range (providing the range is reflective of market conditions and competitiveness) based
on experience and contribution.
As stated previously, once an airport leader is within the appropriate salary range, ADK suggests that
an incentive pay program be established that is based on defined expectations and measurements
and that provides enticement for the executive leadership to 1) stay at the airport and 2) be
incentivized to continue to be a high performer. A component of being an effective business is having
talent management practices in place that support an airport’s interest to attract, retain and provide
opportunities for the best talent. A significant factor to attract and retain valuable talent is to maintain
a compensation program that is appealing and that supports growth and financial reward for
contribution. We encourage employers to evaluate salary ranges for all positions every three years
to ensure competitiveness with the market.
See next page for participating airports
10
Participating airports
Smaller
Columbia Metropolitan Airport
Jackson-Evers International Airport
Sarasota-Bradenton International Airport
McGhee Tyson Airport
Piedmont Triad International Airport
Savannah/Hilton Head International Airport
Greenville Spartanburg International Airport
Bill and Hilary Clinton National Airport
Manchester-Boston Regional Airport
Birmingham-Shuttlesworth International Airport
Tulsa International Airport
Spokane International Airport
Charleston International Airport
Norfolk International Airport
Larger
Louisville International Airport
T.F. Green International Airport
Memphis International Airport
Jacksonville International Airport
Cincinnati/Northern Kentucky International Airport
Bradley International Airport
Port Columbus International Airport
Indianapolis International Airport
Pittsburgh International Airport
Raleigh-Durham International Airport
Metropolitan Oakland International Airport
Nashville International Airport
Portland International Airport
Tampa International Airport
11
CEO Compensation Survey (2015
Entity
Title
Annual Base Pay
14/15 Bonus
%ER Paid
Life Ins.
Health Ins.
Amount
Car Allowance
Provided
Provided
for Dep
Health Plan
Available After
Employment
Retirement
Program
Employer
Post Employment
Contribution to Health Account
Def Comp plan
(VEBA)
Vacation Pay out at
Separation
Sick Pay out at
Separation
Severance Package
Other
No cause – 6
months
Long Term Care policy
(Executive Staff only)
Local Agencies (2015)
RSCVA
CEO
$234,083.20
$9,363.33
$750/Month
50%
2x Salary
NV PERS –
w/10 years of
service and full 100% Employer
Paid
retirement
City of Sparks
Sparks City
Manager
$190,000
$6798.10 $7752.68
annual 100% 25,000 Yes paid 100%
RTC
Executive
Director/CEO
$0.00
$500/month
100%
not
provided
None at this
time
City of Reno
Washoe County
Reno City
Manager
County Manager
$
208,852.80
$195,770
$216,860
$6,500
$
10,000.00
$500/Month
$600/Month
100%
50%
2x Salary
None
N/A
No
PERS paid
100%
Half of annual
limit
No
PERS paid
100%
5% not to exceed
$10,000
No
NVPERS
5% base
The County pays
Deferred
all or a portion
Compensation
of the premium
Program is
cost for retirees
managed by
coverage based
1.5x
MassMutual. Salary and on hire date and NV PERS, 100%
The 457 Plan is
ER paid
maxes out years of service. available to all
Retirees have
contributions
at
full-time
$100,000 three (3) health
employees
plans to select
immediately
from. Selfupon
funded, PPO or
employment.
HMO.
EXHIBIT D
No
No
Pay out of 1/3
accrued sick pay
Pay out of 100%
@ 100% of base,
accrued vacation pay maximum of 300
@ 100% of base
paid hours (900
total allowable
accrued)
yes Yes or can convert If contract is broken
to pay for retiree outside renewal
health insurance
dates
Pay out of 100%
Pay out of 1/3
accrued vacation pay accrued sick pay
@ 100% of base
@ 100% of base
100%
None
$900 cell phone No cause – 6
months
40 hours personal leave per
year (use it or lose it)
The severance
package will include
payment to Clinger
of one (1) year of
his minimum
$80 Cell-phone
Longevity pay of $100 per
Sick leave balance
year of service up to a
minus 300 hours
base salary which maximum annual payment
Pay out of all accrued then divide by 2. payment shall be a of $3,000 for 30+ years of
Max. payout of
unused hours at
service. Personal Leave – Up
maximum of
800 hrs. No
100% base pay
to 24 hours per year for
$191,925
payment for less
using less than 40 hours of
than 300 hrs.
sick leave per year.
President/CEO’s Report
December 2015
Marily M. Mora, A.A.E., President/CEO____________________________
Air Service
•
Reno-Tahoe International Airport (RNO) served 253,494 passengers in November 2015, which is up
12.5% versus November 2014. The Airport experienced positive passenger growth for the sixth
consecutive month with respect to year-over-year monthly comparisons. Significant snowfalls early
in the winter season helped ski resorts open early and draw record traffic. In terms of percentage,
November 2015 represents the highest year-over-year monthly passenger growth at RNO since June
2004. During the first eleven months of 2015, RNO served 3,146,225 passengers, representing an
increase of 3.4% when compared to the same period last year.
TOTAL PASSENGERS
Total Passengers
November-15
Passengers
•
% Diff.
Passengers
2015
% Diff.
2013
2014
JAN
264,265
241,181
-8.7%
246,571
FEB
259,299
228,035
-12.1%
234,763
3.0%
MAR
306,139
278,172
-9.1%
277,477
-0.2%
2.2%
1st Quarter
829,703
747,388
-9.9%
758,811
1.5%
APR
279,418
266,800
-4.5%
256,823
-3.7%
MAY
295,494
282,277
-4.5%
276,969
-1.9%
JUN
328,755
316,720
-3.7%
319,309
0.8%
2nd Quarter
903,667
865,797
-4.2%
853,101
-1.5%
JUL
333,321
332,242
-0.3%
350,823
5.6%
AUG
322,083
318,965
-1.0%
336,948
5.6%
SEP
283,800
284,931
0.4%
297,299
4.3%
3rd Quarter
939,204
936,138
-0.3%
985,070
5.2%
OCT
262,473
266,701
1.6%
295,749
10.9%
NOV
227,213
225,384
-0.8%
253,494
12.5%
DEC
270,051
263,682
-2.4%
3,146,225
3.4%
4th Quarter
759,737
749,592
-1.3%
TOTAL
YTD Total
3,432,311
3,298,915
3,041,408
-3.9%
In November 2015, RNO was served by eight airlines providing 53 peak daily departures to 15 nonstop destinations (20 non-stop destinations if seasonal and new announced flights are included). Total
President/CEO’s Report – December 2015
January 14, 2016
Page 2 of 11
departures at RNO were up 8.4% and the seat capacity increased 10.2% when compared to November
2014.
•
Starting March 16, 2016, Alaska Airlines will begin non-stop daily flights between RNO and John
Wayne Airport, Orange County (SNA). Horizon Air, Alaska’s sister carrier, will fly the route with a
76-seat Bombardier Q400 aircraft.
•
Starting June 5, 2016, Southwest Airlines will begin non-stop flights between Reno and Oakland
three times a day. The airline will utilize 143-seat Boeing 737-700 aircraft on this route.
•
On November 5, 2015, Alaska Airlines began non-stop daily flights between RNO and Boise Airport
(BOI) with a 76-seat Bombardier Q400 aircraft.
•
Recent and Upcoming Schedule Changes
 Alaska Airlines
o Starting November 1, 2015, the new schedule for non-stop flights between Reno and San
Jose is as follows:
 San Jose to Reno:
• AS2250 7:35AM-8:34AM and AS2500 6:25PM-7:24PM
 Reno to San Jose:
• AS2183 6:00AM-7:05AM and AS2253 4:15PM-5:19PM (this flight will
be re-timed in March 2016 to a 5:50 PM departure)
o Reno – Orange County Flights: The flight will depart Reno at 10:15 a.m. and arrive in
Orange County at 11:37 a.m. It will depart Orange County at 2:45 p.m. and arrive in Reno at
4:05 p.m.
 JetBlue Airways (Seasonal Reduction)
o January 5 & 6, 2016: No flight
o January 7 - February 8, 2016: Four times a week (Thurs., Fri., Sun., and Mon.)
o February 9 & 10, 2016: No flight
o February 11 - May 3, 2016: Daily flight.
 Delta Air Lines
o The seasonal non-stop flight between Reno and Minneapolis will operate on January 2 and 3,
2016. This flight will return in July 2016.
 United Airlines
o The daily non-stop flight between Reno and Houston will operate until January 4, 2016. The
flight returns in March 2016
 Southwest Airlines
o The seasonal non-stop flights between Reno and Chicago Midway will resume service in
President/CEO’s Report – December 2015
January 14, 2016
Page 3 of 11
March 2016
o Non-stop flights between Reno and Oakland begin on June 5, 2016. The schedule is as
follows:
RNO Departure Time OAK Arrival Time
OAK Departure Time RNO Arrival Time
6:40 AM
7:45 AM
10:50 AM
11:40 AM
9:30 AM
10:35 AM
3:50 PM
4:40 PM
5:35 PM
6:40 PM
8:45 PM
9:35 PM
 Volaris
o
•
Starting November 2, 2015, Volaris added a third weekly flight between Reno and
Guadalajara. Volaris offers this route on Mondays, Tuesdays and Fridays.
In November 2015, RNO handled 11,657,012 pounds of cargo, an increase of 9.3% when compared
to November 2014. With respect to year-over-year monthly increases, November 2015 is the ninth
consecutive month of air cargo growth at RNO, indicating continued strength in the economy as well
as the growing business diversification in Northern Nevada. The presence of major warehousing,
pharmaceutical, e-commerce, and distribution facilities in the region play a key role in cargo growth
at RNO. In addition, growth in industrial development areas such as the Tahoe/Reno Industrial Center
has continued to help spur cargo growth and economic diversity. RNO handled 120,369,280 pounds
of air cargo during the first eleven months of 2015, an increase of 6.2% when compared to the same
period last year.
TOTAL CARGO
President/CEO’s Report – December 2015
January 14, 2016
Page 4 of 11
Total Cargo
November-15
2013
2014
Cargo in Pounds
2015
Pounds
Metric
% Diff.
3.2%
10,113,421
9,418,781
10,381,009
4,587
4,272
4,708
-1.8%
-0.7%
6.4%
4.2%
29,913,211
13,566
1.2%
9,876,465
14.3%
10,416,248
4,724
5.5%
9,398,212
10,269,963
9.3%
10,459,643
4,744
1.8%
9,001,339
9,679,744
7.5%
10,595,645
4,805
9.5%
2nd Quarter 27,038,723
29,826,172
10.3%
31,471,536
14,273
5.5%
JUL
10,149,807
10,863,843
7.0%
11,775,072
5,340
8.4%
AUG
10,859,694
10,853,726
-0.1%
11,031,470
5,003
1.6%
SEP
9,689,115
10,127,014
4.5%
12,360,393
5,606
22.1%
0.3%
9.9%
9,457,376
28,362,729
10,303,380
9,486,697
9,758,391
29,548,468
APR
8,639,172
MAY
JUN
JAN
FEB
MAR
1st Quarter
10,269,546
8,635,807
3rd Quarter 30,698,616
31,844,583
3.7%
35,166,935
15,949
10.4%
OCT
10,834,930
11,429,538
5.5%
12,160,586
5,515
6.4%
NOV
10,099,499
10,664,398
5.6%
11,657,012
5,287
9.3%
DEC
13,998,438
15,776,073
12.7%
4th Quarter 34,932,867
37,870,009
8.4%
120,369,280
54,589
6.2%
TOTAL
YTD Total
•
% Diff.
121,032,935 129,089,232
113,313,159
6.7%
Recent and Upcoming Schedule Changes
 United Parcel Service (UPS)
o Starting September 15, 2015, UPS added eight weekly flights to their schedule at RNO. These
additions include six Boeing 757s and two Airbus A300.
 DHL
o Starting November 1, 2015, Southern Air began cargo flights on behalf of DHL at RNO.
President/CEO’s Report – December 2015
January 14, 2016
Page 5 of 11
Parking Comparison
Business Development
Reno-Stead Airport Economic Development (AED)
•
UAS (Unmanned Aircraft Systems)
Staff continues working with the University of Nevada Reno (UNR), the National Aeronautics and
Space Administration (NASA), and other corporate partners regarding the technical requirements of
Task Order 2 from NASA to establish connectivity between Nevada and the Live Virtual
Constructive Distributed Environment (LVC-DE) at NASA Ames. To support this connectivity, UNR
will lease 1,572 square feet of space located on the first floor of the Reno-Stead Airport terminal,
where the Nevada Unmanned, Aerial, and NextGen Collaborative Environment (NUANCE)
laboratory will be located.
As an incentive to locate the LVC-DE at the Reno-Stead Airport terminal, the Reno-Tahoe Airport
Authority (RTAA) will fund and construct Phase 1 of the NUANCE lab. In order to meet NASA’s
President/CEO’s Report – December 2015
January 14, 2016
Page 6 of 11
deadline requirements for the LVC-DE, the scope for Phase 1 has been scaled back. The refined
Phase 1 scope now only includes construction of the NUANCE lab, which will meet NASA and UNR
connectivity technical requirements and deadlines.
•
Reno-Stead Airport Real Estate Development Opportunity Request for Qualifications (RFQ)
Staff continues to work with Dermody Properties (DP) as per the Board’s authorization in February
2015, to represent the RTAA in order to complete Phase 2 - Marketing and Financial Due Diligence,
and Phase 3 - Development Proposal of the Reno-Stead Airport RFQ.
On October 29, 2015, DP submitted a development proposal that included proposed financial terms
and a Memorandum of Understanding (MOU). Staff met with DP on November 18, 2015 to review
the proposed MOU terms and financial model assumptions. Based on feedback provided, DP has
submitted a revised MOU for staff to review.
On December 3, 2015, staff submitted a counter proposal to DP’s revised MOU. Upon substantial
agreement of business and financial terms, RTAA President/CEO will convene a Land Development
Working Group (LDWG) meeting to allow DP an opportunity to present their proposal. Following
the LDWG meeting, staff will prepare a formal response to the submittal. Upon agreement of terms
and conditions by all parties, staff will bring this item before the full Board of Trustees to authorize
the President/CEO to enter into final negotiations and execute agreements. On December 14, 2015,
staff sent a follow up communication reminding DP of the aforementioned process and schedule
requirements.
Reno-Tahoe International Airport (RNO) General Aviation
•
CEO Advisory Group on GA Minimum Standards (GAMS)
On December 2, 2015, the RTAA hosted the General Aviation (GA) Public Workshop on the RTAA
CEO Advisory Group’s proposed revisions to the RTAA GAMS. The public workshop was well
attended by over 50 members of the general aviation community, members of the RTAA Board of
Trustees and RTAA staff. The purpose of the public workshop was to allow aviation stakeholders the
opportunity to review and comment on the proposed changes to the GAMS as drafted by the RTAA
CEO Advisory Group. In addition to the attendees noted above, representatives from the Nevada
Department of Taxation and the Economic Development Authority of Western Nevada (EDAWN)
were present to answer questions regarding Aviation Tax Abatements and business relocation to
Western Nevada.
The public workshop was organized in a charrette format with six different charrette stations
highlighting proposed changes to: (1) Full-Service Fixed Base Operator (FS-FBO), (2) a new
category, Limited-Service Fixed Base Operator (LS-FBO), (3) Specialized Aviation Service Operator
(SASO), (4) Non-Commercial Flying Club (5) Non-Commercial Hangar Operators, and (6) a new
criteria for detailed Letters of Interest and Business Plans.
The CEO Advisory Group will reconvene in January 2016 to review the public input received from
aviation stakeholders and make any changes as deemed appropriate by the CEO Advisory Group. The
last step in the CEO Advisory Group’s GAMS review process is to recommend proposed GAMS
revisions in the form of a final draft document to RTAA President/CEO for review and consideration.
The RTAA President/CEO will then determine what will be recommended to the RTAA Board of
Trustees for final approval.
President/CEO’s Report – December 2015
January 14, 2016
Page 7 of 11
•
The Atlantic Aviation aircraft ramp reconstruction project was substantially completed on December
22, 2015. As part of the Board approved capital investment, Atlantic’s fuel storage facility
construction is under review by the RTAA Engineering and Planning Department and the Federal
Aviation Administration (FAA) Airport District Office (ADO). On December 8, 2015, the FAA
ADO notified the RTAA to anticipate project approval by January 2016. Construction will begin
once the project review process is complete. The fuel storage facility is exclusively for storage and
will not be used for self-serve fueling. The construction and tank installation process will be
completed by the second quarter of 2016.
Outside Commercial Properties
•
Airport Mini Warehouse
NAI Alliance
A new 12-month commercial lease agreement was executed with NAI Alliance for 1,000 square feet
of commercial warehouse space at 2890 Vassar Street. NAI Alliance is a national commercial real
estate company and this space will be utilized by NAI’s local property management division as
additional storage and work space for their property maintenance technicians. The total contract value
is $4,080.00
RNO Concessions
•
Retail
Due to a number of tenant-related challenges, the post-security relocation of Forever Heather to the
B2 Holdroom has been delayed until early January 2016. Forever Heather has been notified that they
must commit to completing the relocation before January 22, 2016, or vacate the premises.
•
Rental Cars
The new reconfigured rental car return area on the first level of the parking structure is complete and
began accepting vehicle returns as of December 1, 2015. Staff will be meeting with the rental car
operators in early January 2016 to review how the return area is working and to address any further
items which may be required to ensure an efficient operation.
Organizational Training & Development
•
Human Resources (HR) staff coordinated the first of a quarterly series of “Airports Webinars”. Each
webinar will focus on a different aspect of airports and/or aviation, and are intended to give all RTAA
employees the opportunity to learn more about our interesting and complex industry. Content for
these webinars will be taken from the Airport Cooperative Research Program (ACRP) and American
Association of Airport Executives (AAAE). The first session, “Guidebook for Safety Management
Systems (SMS)” was well attended and was followed by a facilitated discussion led by Mike Scott,
Vice President of Operations and Public Safety.
•
HR staff presented several computer classes open to all RTAA employees. “Excel Basics” discussed
fundamentals of spreadsheets including formatting, navigation, and basic formulas. “Beginning
Word” reviewed functions such copy/paste, fonts, paragraphs, and styles. Finally, a “Forms” class
instructed participants in how to create documents that can be filled out electronically.
President/CEO’s Report – December 2015
January 14, 2016
Page 8 of 11
•
A Leadership Webinar Series was offered in December titled, “Leading with Respect.” Facilitated by
Dr. Paul Marciano, a leading authority on employee engagement and retention, this webinar
discussed how respect is the driving force behind employee engagement, and why when employees
experience respect they are more engaged at work.
•
RTAA Management representatives have started meeting to review the Teamsters collective
bargaining agreement. This review is being conducted to identify potential bargaining priorities in
preparation to enter into successor agreement negotiations beginning in February 2016.
•
The new organizational wellness initiative called “THRIVE for Wellness” was launched in January
2015 and concluded in December. This year long program followed along with the new Values
initiative in that each letter of THRIVE took on a wellness oriented theme. To represent the “E” in
THRIVE, November/December’s theme was “Let’s Show Some Enthusiasm for Exercise”, and
included a 5-week Move More Exercise Challenge where employees received a weekly raffle entry
when they exercised at least 3 times for a minimum of 20 minutes each time. Over 50 employees
participated.
Miscellaneous Information
•
The Airport’s social media strategy continues to be a success. Facebook followers are at 10,998 with
a monthly post reach of 1.6 million and Twitter is now at 4,845. Social media posts focused on
promoting airline partners and fare sales, information about the Reno-Tahoe region, travel tips,
#kindnesstakesflight, partner promotions, Airport job postings, and the monthly employee photo
contest.
•
Reno-Tahoe International Airport, in partnership with Squaw Valley Ski Holdings, LLC, is one of
three finalists in the 2016 bid for the International Aviation Forecast Summit, put on by Boyd Group
International LLC. The annual conference would take place September 18 – 21, 2016 and would
bring together more than 400 aviation professionals, including CEOs and top airline officials. The site
visit was January 4 and 5th. Final selection for this conference is anticipated to be made in early 2016.
•
The Paws 4 Passengers volunteer team worked throughout the terminal during the peak travel days
before Christmas and New Years to comfort travelers. Now in their third year, Paws 4 Passengers dog
teams have dedicated more than 1,500 volunteer hours to aid stressed and nervous RNO passengers.
•
The Washoe County Schools and local dance teams brought eight different holiday performances to
Reno-Tahoe International Airport during the busy December travel period. Orchestras, bands, choirs,
and dancers performed for the delight of employees and passengers.
•
On December 21st, Chairman Andy Wirth joined Reno Vice Mayor Oscar Delgado, Father Jorge from
Little Flower Church, and a local family in announcing a complaint against the U.S. Customs and
Border Protection (CBP). The RTAA insisted on improvements to the way CBP Officers treat
passengers on the Volaris flights. Multiple television, radio, and print news outlets were on hand to
cover the story.
•
Multiple television, radio and newspaper interviews were conducted during the Christmas and New
Year holidays regarding high passenger loads, travel tips, and weather delays. In addition, news
media inquired about security at the front curb, Customs and Border Protection, and the wildlife
management program.
President/CEO’s Report – December 2015
January 14, 2016
Page 9 of 11
•
Staff participated in a radio show program on Shamrock radio and discussed growing air service and
economic development.
•
Northern Nevada Business Weekly (NNBW) recognized CEO Marily Mora as a “Leaders to Know in
Northern Nevada” in their annual Book of Lists. In addition, the NNBW featured a lengthy opinion
editorial in their December 28th publication about the growing air service at Reno-Tahoe International
Airport.
•
Staff joined the Reno-Tahoe Aviation Group (RTAG) and Atlantic Aviation to host Operation Santa
Claus on December 12th. The charity event gave local families from the Children’s Cabinet an
opportunity to enjoy a warm Christmas celebration. A parade of aircraft from small, single engine
private planes, to a C-130 from the Nevada Air National Guard (NANG), helped welcome Santa
Claus who delivered donated gifts to the families. Almost 100 family members benefitted from this
annual event.
•
The Airport’s Partner in Education, Swope Middle School, got a little help from Airport elves this
holiday, when 100 boxes of canned food items were delivered to 30 Swope families. The Airport staff
donated non-perishable food items, which were sorted and boxed with additional food donated by the
school, and then Airport employees delivered the food to the students’ homes.
•
Taxiway “C” Reconstruction
Currently, negotiations are in progress with Granite Construction regarding a winter shutdown of
construction due to severe weather conditions. Unusually low day time temperatures prevent
construction of asphalt shoulders and may affect proper curing of the remaining concrete pavement.
The winter shutdown shall be at no additional cost to the RTAA and commenced on December 31,
2015 with the opening of Runway 16L/34R. Aircraft taxi routes from GA East will remain with the
current restrictions for the duration of the winter shutdown. Construction shall resume in late March
or early April 2016, subject to weather conditions. Staff has had numerous discussions with the
affected stakeholders regarding this construction schedule change.
•
The New Approach to Sustainability
Planning staff presented the proposed new approach to sustainability to Management staff in
December 2015. The sustainability presentation outlined the transition from the existing
Environmental Management System (EMS) approach that implements discrete initiatives primarily
focused on environmental compliance and natural resource conservation, to a more holistic
sustainability approach, that endorses environmental stewardship, social responsibility, economic
viability, and operational efficiency. Next steps involve defining sustainability goals and objectives,
identifying sustainability initiatives, and creating plans to support the sustainability actions.
•
Aircraft Rescue and Firefighting Facility (ARFF) Solar System
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. As indicated in the table below, approximately $16,440
in electrical costs were saved as a result of the solar system during the current 2015-2016 fiscal year
period.
President/CEO’s Report – December 2015
January 14, 2016
Page 10 of 11
Power Generation
Energy Offset from Monthly Bill
Energy Credits Banked
Banked Credits Applied
Total Earned
Banked Credits Remaining
•
November
2015
$3,390
$0
($391)
$2,999
NA
FY 2015-2016
$16,009
$431
($421)
$16,440
$10,893
Recycling at Reno-Tahoe International Airport
Beginning July 2015, staff has successfully collected approximately 28.28 tons of recyclable material
during the FY 2015-2016 period. These recyclables equate to a 7.69 percent diversion rate of the
Airport’s total waste volume. An annual recycling objective remains set at 10 percent.
Due to recently implemented hauling cost-reduction measures, collected recyclables will no longer be
transported monthly to local recycling centers. Staff will accumulate recyclables for longer periods of
time before transportation, thereby decreasing the number of annual trips. As a result, during some
months there will be no reportable quantities for certain materials, as illustrated in the table below.
Material
Cardboard
Mixed Paper
Glass
Batteries
Beverage Containers
Total
November 2015
(Tons)
3.34
0
0
0.025
0
3.37
FY15-16
(Total Tons)
14.80
6.18
0
0.17
7.13
28.28
Quarterly Strategic Plan Update
Next Quarterly Strategic Plan Update – January 2016 Report
Legislative/Government Affairs Update
•
Special Session
The month of December brought a special session, which came to order on Wednesday evening,
December 16, 2015, and adjourned on Saturday afternoon, December 19th. The focus of the session
was tax abatements for companies that make “mid-tier” investments in the State over a period of 10
years. The company that prompted the session is electric car maker Faraday Futures, which intends
to locate at Apex, an as-yet-undeveloped industrial park in North Las Vegas.
McDonald·Carano·Wilson (MCW) registered for the session and provided a full report to RTAA
administration.
•
Commission on Economic Development
The commission met for a special meeting on December 30, 2015 to consider a resolution authorizing
the Director of the Governor’s Office of Economic Development (GOED) to take certain actions
without further board review or approval. Director Steve Hill raised the issue for consideration
President/CEO’s Report – December 2015
January 14, 2016
Page 11 of 11
because he sometimes needs faster turnaround in his negotiations with companies than can be
accommodated with regularly scheduled commission meetings.
Mr. Hill will be promulgating regulations, with the goal to have them approved before July 1, 2016.
The Director’s actions authorized unanimously, until regulations can be adopted, are as follows:









•
Establish a uniform “effective date” policy
Determine whether categories of records or other documents may be treated as confidential
records (e.g., When working with a potential new company, there are multiple emails fulfilling
information requests; currently, each document or email would need to be specifically approved
for confidentiality.)
Establish a minimum number of new full-time employee requirements for businesses to be
eligible for abatements (The threshold was set at 10 employees. Discussion ensued about use of
employee leasing companies; eligible employees are deemed to be those who are employees of
the business, not of a leasing company.)
Establish a “rate of unemployment” definition
Define minimum health care benefits (The Governor is adamant that employers must provide
benefits and not have the employees access benefits through the health insurance exchange.)
Establish certain audit tolling provisions
Further define “Project” and describe circumstances in which the term “Project” can be amended
Accelerate processing of an “economic development financing proposal”
Clarify certain categories of equipment not eligible for abatement (e.g., health care equipment and
mining equipment are not eligible.)
Candidates
MCW continues to meet with declared candidates and incumbents. Once the official filing period
closes, MCW will begin to arrange briefings with the RTAA administrative team.
Filing
March 7, 2016 through March 18, 2016
Primary
June 14, 2016
General Election November 8, 2016
The Special Session prompts rules related to political fundraising for incumbents; specifically, they
cannot accept donations for 15 days after the session ends.