BOARD OF TRUSTEES PRESIDENT/CEO · A. Employee, Tenant and Special Recognition B. Introduction of...

BOARD OF TRUSTEES PRESIDENT/CEO Andy Wirth, Chair Marily M. Mora, A.A.E. Rick Murdock, Vice Chair EXECUTIVE VICE-PRESIDENT/COO Nat Carasali, Secretary Dean E. Schultz, A.A.E. Jerry Hall, Treasurer GENERAL COUNSEL Bill Eck Ann Morgan, Fennemore Craig Lisa Gianoli CLERK OF THE BOARD Adam Mayberry Claire Johnson Jenifer Rose Jessica Sferrazza

RENO-TAHOE AIRPORT AUTHORITY

MEETING OF THE BOARD OF TRUSTEES December 10, 2015

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 – November 12, 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 December 10, 2015 Board Meeting of 3

G. Air Service Liaison H. The Chamber Reno Sparks Northern Nevada I. Reno-Tahoe International Airport Users Committee

VIII. 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

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

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

C. #15(12)-50 Acceptance of 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 - January 19 and January 21 – Current Schedule - January 12 and January 14 – Proposed Schedule

E. #15(12)-52 Appointment of Two New Members to the Reno-Tahoe Airport Authority Community Outreach Committee – Glenn Carano and Daniel Farahi

X. ITEMS FOR BOARD INFORMATION AND DISCUSSION

A. Presentation 1. None

B. Board Meeting Schedule

1. January 12, 2016 9:00 am Finance & Business Development Committee Meeting (Pending Board Approval)

2. January 12, 2016 10:00 am Planning & Construction Committee Meeting (Pending Board Approval)

3. January 14, 2016 9:00 am Board of Trustees Meeting (Pending Board Approval)

4. February 9, 2016 9:00 am Finance & Business Development Committee Meeting 5. February 9, 2016 10:00 am Planning & Construction Committee Meeting 6. February 11, 2016 9:00 am Board of Trustees Meeting

Board Agenda December 10, 2015 Board Meeting of 3

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. Members of the public who are disabled and require special accommodations or assistance at the meeting are requested to notify the Clerk of the Board in writing at P.O. Box 12490, Reno, Nevada 89510 or by calling (775) 328-6410 prior to the meeting date. THIS AGENDA HAS BEEN POSTED AT THE FOLLOWING LOCATIONS: 1. Airport Authority Administrative Offices – 2001 E. Plumb Lane, Reno 3. Reno City Hall – One East First Street, Reno 2. Washoe County Administrative Offices – 1001 E. 9th Street, Reno 4. Sparks City Hall – 431 Prater Way, Sparks

*** These draft minutes have not yet been approved and are subject to revision at the next

regularly scheduled meeting. ***

RENO-TAHOE AIRPORT AUTHORITY BRIEF OF MINUTES

MEETING OF THE BOARD OF TRUSTEES November 12, 2015

9:00 a.m.

MEMBERS PRESENT ALSO PRESENT Andy Wirth, Chair Marily M. Mora, A.A.E. Rick Murdock, Vice Chair President/CEO Jerry Hall, Treasurer Dean Schultz, A.A.E. Nat Carasali, Secretary Executive Vice President/COO Bill Eck Ann Morgan Lisa Gianoli General Counsel Adam Mayberry Claire Johnson Jenifer Rose Clerk of the Board Jessica Sferrazza MEMBERS ABSENT/EXCUSED None The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. In Chair Wirth’s absence, Vice Chair Rick Murdock called the meeting to order. The Pledge of Allegiance was recited.

III. PRESENTATIONS AND AWARDS A. Employee, Tenant and Special Recognitions

None.

B. Introduction of New, Promoted and Retired Employees Dean Schultz, Executive Vice President/COO, recognized employee Mike Earle on his retirement after 35 years of service to the Reno-Tahoe Airport Authority (RTAA). Mr. Schultz stated that Mr. Earle’s retirement date was November 3, 2015, and made special mention that he was one of the original members of the Airport Fire Department. Mr. Schultz thanked Mr. Earle for his many years of service and congratulated him on his retirement. Mr. Earle thanked the Trustees and the RTAA for this special recognition. He stated that the RTAA is a great organization to work for and with wonderful people. He also said that the Airport Fire Department is “young” with a lot of potential for growth in the future under the leadership of Chief Tom Nelson. Next, Mr. Schultz asked Mr. Earle to remain at the podium. Mr. Schultz introduced new employee Michael Earle, son of retiree Mike Earle, and indicated that he joined the RTAA on November 2, 2015 as an Airport Firefighter. In a touching ceremony, retiree Mike Earle placed his son’s badge on him as a new member of the Airport Fire Department. Mr. Schultz continued

Meeting of the Board of Trustees November 12, 2015 Brief of Minutes Page 2 of 9

by introducing four more new employees - Ricardo Duarte, Airport Police Officer, Kathy Jo Morgan, Administrative Assistant II for Landside Operations, Doug Schell, Facilities Maintenance Technician, and Julian Mancebo, Airfield Maintenance Worker. Finally, Mr. Schultz recognized Faith Allen on her recent promotion to Capital Improvements & Grants Coordinator for the Engineering & Planning Department. At this point, Vice Chair Murdock recognized Reno City Councilwoman and Liaison to the RTAA, Neoma Jardon, as being present in the audience.

C. Tenant Communication None.

IV. PUBLIC COMMENT (limited to 3 minutes) None.

V. APPROVAL OF MINUTES On motion by Trustee Hall, seconded by Trustee Gianoli, which motion duly carried by unanimous vote, the Board approved the minutes from the Board of Trustees meeting of October 8, 2015.

VI. APPROVAL OF AGENDA

Trustee Hall suggested a change in the order of the agenda, by asking that Board item VIII. C. #15(11)-44 under VIII. Consent Items for Board Action be moved to the first item under IX. Items for Board Information, Discussion and Possible Action. On motion by Trustee Sferrazza, seconded by Trustee Carasali, which motion duly carried by unanimous vote, the Board approved the November 12, 2015 Board of Trustees meeting agenda, with the change as suggested by Trustee Hall.

VII. COMMITTEE / LIAISON REPORTS Committee / Liaison reports were given by:

A. Finance and Business Development Committee – Trustee Jerry Hall B. Planning and Construction Committee – Trustee Adam Mayberry C. Airport Noise Advisory Panel – Trustee Jenifer Rose D. Community Outreach Committee (COC) – Trustee Jessica Sferrazza E. Stead Liaison – Trustee Bill Eck F. RSCVA Board – Trustee Nat Carasali G. Air Service Liaison – Trustee Rick Murdock H. The Chamber Reno Sparks Northern NV – Marily Mora (RTAA) I. Reno-Tahoe International Airport Users Committee – Trustee Adam Mayberry

It was noted that Chair Wirth joined the Board meeting at 9:20 am and assumed responsibility of the meeting by introducing Trustee Eck to provide the Stead Liaison Report.


VIII. CONSENT ITEMS FOR BOARD ACTION A. #15(11)-42 Authorization for the President/CEO to Award a Contract for System Design and

Construction Management Services, for the Replacement of the Flight Information Display and Overhead Paging Systems at the Reno-Tahoe International Airport, with Faith Group LLC, in the Amount of $207,600 On motion by Trustee Mayberry, seconded by Trustee Eck, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(11)-42 as follows:

Authorized the President/CEO to Award a Contract for System Design and Construction Management Services, for the Replacement of the Flight Information Display and Overhead Paging Systems at the Reno-Tahoe International Airport, with Faith Group LLC, in the Amount of $207,600

B. #15(11)-43 Authorization for the President/CEO to Execute a Professional Services Agreement for Design Work for the Rental Car Service Facilities Parking Lot Reconstruction at Reno-Tahoe International Airport, with Lumos and Associates, in the Amount of $79,605

On motion by Trustee Mayberry, seconded by Trustee Eck, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(11)-43 as follows: Authorized the President/CEO to Execute a Professional Services Agreement for Design Work for the Rental Car Service Facilities Parking Lot Reconstruction at Reno-Tahoe International Airport, with Lumos and Associates, in the Amount of $79,605

IX. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION C. #15(11)-44 Authorization for the President/CEO to Execute a Professional Services Agreement

for 2016 Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $46,000

Ms. Mora stated that based on discussion at the Planning and Construction Committee meeting held on November 8th, Dave Lazo, Manager of Engineering & Construction, has additional information to present. Mr. Lazo presented an overview of the processes surrounding the procurement of professional services. He referenced regulatory requirements by citing related sections of the Nevada Revised Statutes (NRS) and the Federal Aviation Administration (FAA) advisory circulars. Mr. Lazo further outlined the public announcements that are done in conjunction with the advertisement of a Request for Qualifications (RFQ). This specific RFQ was an open solicitation and Mr. Lazo listed the various venues to which the RFQ was announced, and also that direct notifications were made to over 50 firms that are registered on the RTAA annual services list. He also stated that an interesting element in the RFQ is the non-exclusive nature of Construction Management (CM) services. The Airport Authority reserves the right to negotiate for CM services with other firms, for projects not included in the agreement. Also, the consultants providing CM services are not excluded from providing design services, but it is at the discretion of the RTAA, which provides quite a bit of flexibility.


At this point, Mr. Lazo introduced the Senior Program Manager for Atkins, Linda Shields, and stated that Atkins has been providing services to the Airport Authority for the past several years and is quite accomplished in the services provided. He stated there has been much success on some major capital improvements, including the in-line baggage handling system and gateway improvements projects, along with other airfield projects conducted in the last several years. He ended by showing a matrix of the construction projects anticipated in 2016 that are not a part of this request for approval, but that will most likely be incorporated by amendment when the design for the projects are concluded early next year. Mr. Lazo indicated this provides an indication of the limited workload that is going to comprise the capital program next year, which is not in the magnitude of what has been done in prior years. A discussion followed regarding the procedures and issues surrounding the processes of advertising RFQs for CM services and other projects. Trustee Hall thanked Mr. Lazo for providing the additional information. He indicated that perhaps for another meeting of the Planning and Construction Committee, it might be useful to see the tentative schedule for 2017 and 2018 capital improvements. Mr. Lazo stated that those future projects were stipulated in the RFQ. Trustee Hall stated his concern is one of process, and not with the selected firm. Trustee Rose expressed her concerns regarding the fact that a nationwide search was done, and resulted in only three (3) proposals being received. She stated that the low response rate seems to be consistent among all the various projects for which the RTAA is soliciting bidders. Trustee Rose feels there is a problem either in the message, the outreach, or in the processes being followed. She stated that by the time the selection committee meetings are convened, the RFQ deadline has already passed and the proposals are what they are. Perhaps getting involved sooner in the process would be of benefit. With that said, Trustee Rose has no doubt that from the proposals received, Atkins is the best choice and most qualified for the work. Trustee Hall clarified that his concern also has to do with the low number of respondents. He brought up a point regarding the expense involved for firms to submit a proposal and that he believes firms take the cost into consideration when determining whether to propose or not. Trustee Hall suggested that perhaps firms do not feel the playing field is level due to the amount of work Atkins has done for the Airport Authority in terms of construction management. He feels the Airport Authority should somehow expand the number of consultants that can do the technical work, or in other words, spread the work around to provide more opportunity for others in the community to access work at the Airport. Trustee Mayberry expressed his support of the comments made by Trustees Hall and Rose, and expressed his appreciation of the honest dialogue between Trustees and staff. Chair Wirth summarized the comments of the Trustees regarding the fixed number of respondents and the perceptual elements. He asked Mr. Lazo for his thoughts on enhancing the process in order to remedy the concern around perception and for any further comments he might have on process. Mr. Lazo indicated that this RFQ is a bit of an outlier in terms of response rate, since in prior solicitations for CM services, 8-12 submittals have been received. When it comes to design agreements, there is usually a good response, and next spring there will be several design agreements going out for RFQ. He speculated that some of the firms may be waiting for those to be advertised. Even though there is a non-exclusive provision in the RFQ, a lot of design companies have the preference to do design work instead of limited construction management services.


Ms. Mora suggested that when the number of submittals being received was higher, there were two major projects – the gateway project and the consolidation of checkpoints project, and prior to that, the in-line baggage handling system project. The internal discussion among staff about the lack of submitters to this RFQ was that it could have to do with the volume of work that is expected (which was detailed in the RFQ), and that may have been a factor with this response compared to what’s been received in the past. Trustee Sferrazza asked if there is a possibility of using a rotation method in the solicitation of CM services, similar to what is done by the City of Reno, by using an engineer of record list, whereby staff could go through the list of qualified firms and rotate the project assignments. Mr. Lazo responded that the Engineering Department has an annual services list of architectural and engineering services, and that list includes over 50 companies on record with their statements of qualifications on file. Whenever an RFQ or other type of solicitation is issued, these companies are directly contacted by the RTAA. The RTAA does not specifically rotate because the projects are qualifications based selections, so each individual project will have a certain skill set and specialized resources that are required. Using a rotation method is not a policy of the RTAA, as it does not comply with the spirit of qualifications based selections. Ms. Mora stated that because we have the annual services list, using it does allow for spreading the work around the community, and that is intentionally done, with consideration given to the required qualifications. Chair Wirth asked General Counsel to review statutes and practices of other public entities, to ensure a clear answer to Trustees Sferrazza’s question regarding use of a rotation method, and provide the information back to the Board.

On motion by Trustee Carasali, seconded by Trustee Rose, which motion was duly carried by eight (8) ayes and one (1) opposed vote, the Board approved Agenda Item #15(11)-44 as follows:

Authorized the President/CEO to Execute a Professional Services Agreement for 2016 Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $46,000

A. #15(11)-45 Authorization for the President/CEO to Execute Amendment No. 2 to the Professional Services Agreement with the Porter Group LLC, for a Three-Year Extension to January 31, 2019, for Federal Government Affairs Services

Ms. Mora indicated that a presentation was made at the Finance and Business Development Committee. She also acknowledged the presence of Congressman Jon Porter and along with Dan Mauer of the Porter Group LLC at today’s meeting. Chair Wirth asked that if in the event the RTAA has an interest in working with a different government affairs group, are there appropriate options built into the 3-year extension. Ms. Mora responded that there is a 30-day clause allowing either party to opt out. Trustee Sferrazza commented that a request was made at the Finance and Business Development Committee meeting to receive information on the Clark County Airport Authority’s government affairs consultant, and what was found is that they have used the same firm since 1996. Trustee


Sferrazza further stated that her issue is with process and the need to open it up to solicitation. Ms. Mora stated that an RFQ will be advertised before the conclusion of the 3-year contract. Trustee Mayberry disclosed his past working relationship with Congressman Jon Porter over a decade ago, but indicated it does not require a recusal. On motion by Trustee Mayberry, seconded by Trustee Carasali, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(11)-45 as follows: Authorized the President/CEO to Execute Amendment No. 2 to the Professional Services Agreement with the Porter Group LLC, for a Three-Year Extension to January 31, 2019, for Federal Government Affairs Services

B. #15(11)-46 Approval of New Members and a Change to the By-Laws of the Reno-Tahoe

Airport Authority Community Outreach Committee

Brian Kulpin, Vice President of Marketing and Public Affairs, stated that staff is recommending approval of new members and a change to the bylaws of the RTAA Community Outreach Committee (COC). The proposed change adjusts the number of members from 17, which was approved at last month’s Board meeting, to a total of 19, due to the strong community interest. A new application process was embarked upon during the last month, allowing the Board to approve up to 17 members to the COC that span business, tourism, government, and the general public. The response has been tremendous with more than 40 applicants. There are a total of 17 members recommended for approval at this time, with two additional members to be announced at a later date, in order to allow the Chair and Vice Chair of the Committee more time to review the applications that were received after the application deadline. A recommendation to fill the 2 remaining seats will be brought to the Board for approval at a later date. Changes to the bylaws are also being recommended, adjusting the membership from 17 to 19, and also responding to what the Board brought up at the last meeting which was staggering the terms of members. Trustee Sferrazza disclosed that the Atlantis Resort Casino is a client of hers, however because the COC’s purpose is to provide essential community input and feedback on RTAA issues and initiatives, and does not involve taking action on any items in which she would have a financial interest, she does not believe she has a conflict and therefore she will be voting on this item. Trustee Rose disclosed that the Atlantis Resort Casino is also a customer of hers, but there is no financial interest. Trustee Hall asked that consideration be given to including a clause in the bylaws that if any member or liaison is absent from two consecutive meetings they will be removed from the Committee and replaced by the RTAA. A discussion followed regarding the implications of missing two quarterly meetings and how best that should be handled. It was decided to leave the suggested clause out of the bylaws, thereby leaving it to the Chair to evaluate each situation as it arises, giving her the ability to make the call based on whether it is due to a lack of interest or there are extenuating circumstances to be considered. On motion by Trustee Rose, seconded by Trustee Carasali, which motion was duly carried by unanimous vote, the Board approved Agenda Item #15(11)-46 as follows:


Approved New Members and a Change to the By-Laws of the Reno-Tahoe Airport Authority Community Outreach Committee

X. ITEMS FOR BOARD INFORMATION AND DISCUSSION

A. Presentation

1. Mike Scott, Vice President of Operations and Public Safety, introduced the new Unmanned Aerial Systems (UAS) educational outreach program that is being worked on in partnership with the Federal Aviation Administration (FAA). Mr. Scott began by citing the FAA’s 2013 estimate that there would be 30,000 Unmanned Aerial Vehicles (UAV) in the airspace by 2020. Now, just six (6) weeks ago, it was reported that there may be a million or more UAVs sold during the 2015 holiday season, primarily to recreational users, but also to businesses and municipalities. The impact of the UAV growth and what causes the RTAA to conduct an outreach program is that the airspace is going to become denser. As airspace density increases, so too do potentials for conflicts amongst the airspace users. At the end of 2014, there were eight (8) authorizations for commercial UAV use. Today, there are 2,136 authorizations, for such sectors as real estate, engineering and construction, agriculture, media, and public safety. In addition to the commercial sectors, there is the recreational sector. In partnership with RNO’s FAA tower, the RTAA Operations and Public Safety and Public Affairs departments are reaching out to new users to provide information on the local airspace use and constraints and the regulatory environment for each of the different types of uses, and to establish a conduit for coordination as this environment changes for the Airport. Most of the FAA regulatory environment requires users to connect with either the Airport or the FAA Tower if they are going to operate a UAV within five (5) miles of the Airport. There are three primary audiences with whom the RTAA and FAA wish to connect, the first being the municipal government or public safety sector. UAVs are being employed by fire and police, and in our community there is currently one public safety authorization held by Washoe County to fly a UAV. Other entities like Reno Fire Department, Sparks Fire Department, Reno City Police, and the Sheriff’s office, are beginning to look at how they might leverage this technology to do their missions. The RTAA is working closely with Washoe County Emergency Manager to begin educating that user group on how to go about this process. The second user group is the commercial sector and the first concern is with the media, followed by engineering/construction and real estate firms. The last group are the recreational users, which will be the most difficult to influence on how they operate due to the limited requirements and controls by the FAA in terms of registering their UAV, and the absence of instructions included in the packaging at the time of purchase. Mr. Scott displayed a map developed by the Air Traffic Control tower to show the common low level traffic patterns at RNO, and he described the various departure routes around the Airport. Next, he highlighted the members of the team who are involved in the outreach program. He concluded his presentation by displaying a list of where additional information can be found.


Chair Wirth asked for an explanation of the acronyms UAS and UAV. Mr. Scott responded that the terms drone, UAV and UAS are used interchangeably. A drone and a UAV are the same thing - an unmanned aerial vehicle, as is a remote controlled aircraft. Chair Wirth indicated that Squaw Valley has been working on a policy over the past four (4) years which is very specific and strict with enforcement in place. He indicated he will be more than happy to share Squaw’s policy with the RTAA.

B. Board Meeting Schedule Chair Wirth referred to the schedule of upcoming meetings. 1. December 8, 2015 9:00 am Finance & Business Development Committee Meeting 2. December 8, 2015 10:00 am Planning & Construction Committee Meeting 3. December 10, 2015 9:00 am Board of Trustees Meeting 4. January 19, 2016 9:00 am Finance & Business Development Committee Meeting 5. January 19, 2016 10:00 am Planning & Construction Committee Meeting 6. January 21, 2016 9:00 am 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 thanked the Trustees for their participation in the Board Retreat held on November 3rd, and indicated that staff will be bringing a request to move forward on the master plan process to the December Board meeting. She also thanked the Trustees who participated in the events held at the Airport during the past week. Ms. Mora concluded by saying she would be happy to answer any questions the Trustees may have about information included in the President/CEO Report. Chair Wirth offered a reminder about the need to follow up on Trustee Sferrazza’s inquiry about rotation of firms, and that the response could be communicated either between now and the next Board meeting, or as part of next month’s President/CEO Report.

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 Carasali pointed to the existence of the COC, the Regional Air Service Corporation (RASC), and the Reno-Sparks Convention and Visitor Authority (RSCVA), and that hopefully along with the Chamber at some point, all of these organizations will be out there educating and informing the public about air service. He stressed that the RTAA should be at the hub coordinating this effort, and stated that the more coordination that is done, the stronger and more long lasting the impact will be. Trustee Carasali again stressed the importance of there being one message led by the RTAA. Ms. Mora expressed her agreement with Trustee Carasali’s comments, particularly given the RTAA’s strategic priority of air service. She indicated that the RTAA is committed to leading the effort. Trustee Carasali asked that periodic information be provided back to the Board on how the effort is proceeding, and whether help is needed from the Trustees to solidify that the RTAA is the entity that will lead the effort. Chair Wirth expressed his support of these comments.


Chair Wirth thanked the Trustees for their participation in the Board Retreat and their high level of engagement. He specifically thanked Trustee Hall for his presentation of the Strategic Plan. There were no further comments.

XI. PUBLIC COMMENT None.

XII. ADJOURNMENT There being no further business, the meeting was adjourned at 10:17 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: December 2, 2015 Memo: # 15(12)-47 To: Chairman & Board Members For: December 10, 2015 Board Meeting From: Marily Mora, A.A.E., President/CEO Subject: 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

STAFF RECOMMENDATION Staff recommends that the Board authorize 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. (Deeside Trading) and the Reno-Tahoe Airport Authority (RTAA). PURPOSE The purpose of this action is to seek Board approval for the President/CEO to negotiate final terms and execute a new five-year commercial hangar lease for an S-CASP at Reno-Tahoe International Airport (RNO). This action is in support of the RTAA Strategic Priority # 2 - Optimize General Aviation Operations and Service and Priority # 4 – Facilitate Economic Development at Both Airports, and the Guiding Principle of Financial Integrity, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. This action supports the financial growth of the RTAA as a self-sustaining entity by maximizing non-airline revenue; and, to provide consistent, high quality airport services that integrate general aviation operations in compliance with safety and security regulations for an efficient, safe and seamless experience for all Airport users. BACKGROUND Deeside Trading was a tenant in Hangar 9 at General Aviation (GA) West prior to August 2010. In September 2010, Deeside Trading executed a new lease and relocated to Hangar G located at GA East (refer to attached Exhibit A), with the intent of operating as an S-CASP in the hangar. As an S-CASP, Deeside Trading has been providing a single commercial aeronautical service at RNO, in accordance with the terms of the lease, while meeting the applicable GA Commercial Minimum Standards for air charter operations. Deeside Trading holds a Part 135 Certificate as issued by the Federal Aviation Administration (FAA) that allows them to provide charter aircraft services for hire; however, Deeside Trading primarily utilizes their aircraft for company purposes.

Deeside Trading Company Ltd. # 15(12)-47 December 10, 2015 Board Meeting Page 2 of 3 The previous lease expired on August 31, 2015 and, as a result, Deeside Trading has been in holdover pending determination of a capital investment and length of term of a new lease. Deeside Trading has been a tenant in good standing in Hangar G and is in compliance with all lease terms and other Airport operations and procedural requirements. DISCUSSION Deeside Trading is seeking a new five-year lease that includes one (1) two-year option to extend. As a material consideration to enter into a new lease, Deeside Trading has agreed to make a $15,000 capital investment in Hangar G. The investment will include, but is not limited to, installing a crew shower facility and upgrading the current hangar lighting from fluorescent lighting to Light Emitting Diode (LED). The new five-year lease is based on the following key terms:

• Leased premises: 10,000 square foot (sf) hangar consisting of office space and aircraft storage

• Base Rent is $5.08 per sf per year, or $0.42 per sf per month • Base Rent will adjust annually based on the Consumer Price Index (CPI) All Urban

Consumers • Capital Investment of $15,000 within twelve months of the lease commencement date

COMPANY BACKGROUND Deeside Trading Company, Ltd. is a privately owned company based in Sparks, Nevada. Mr. Robert M. Lee serves as President. Deeside conducts private use and limited charter operations with its Gulfstream III Aircraft based at RNO. FISCAL IMPACT The proposed lease term is five-years effective January 1, 2016. The proposed lease rate for Year 1 is consistent with the RTAA Master Fees for FY 2015-2016. The table below outlines the estimated revenues over the term of the Lease:

Facility Square Footage

Base Rent per square foot per

month

Monthly Base Rent

Annual Base Rent

5-year Contract

Value Hangar G 10,000 $0.42362 $4,236 $50,834 $254,170

The minimum contract value for the five-year term is $254,170. Should the two-year option to extend be exercised, the minimum contract value would increase by $101,688 for a total value of $355,838. The Base Rent rate is proposed to be adjusted annually on the anniversary of the lease commencement date, based on the percentage of change in the published Consumer Price Index (CPI-U) for all Urban Consumers. Over the term of the lease, Deeside Trading will also be responsible for all utility expenses as well as maintenance and repair of the leased premises.

Deeside Trading Company Ltd. # 15(12)-47 December 10, 2015 Board Meeting Page 3 of 3 COMMITTEE COORDINATION This item is scheduled to be presented at the December 8, 2015 Finance and Business Development Committee Meeting. RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion:

“It is hereby moved that the Board authorizes 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. (Deeside Trading) and the Reno-Tahoe Airport Authority.”

MMM/km/cj

Rock Blvd

FAA Air Traffic Control Tower

G

Leased Premises

Exhibit A

Leased Premises

GA East—Hangar G

#15(12)-47

Date: December 2, 2015 Memo: # 15(12)-48 To: Chairman & Board Members For: December 10, 2015 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: APPROVAL OF ACTION ITEM PROPOSED BY STAFF AND

DISCUSSED AT THE NOVEMBER 3, 2015 RENO-TAHOE AIRPORT AUTHORITY BOARD RETREAT FOR THE INITIATION OF A RENO-TAHOE INTERNATIONAL AIRPORT MASTER PLANNING PROCESS

STAFF RECOMMENDATION Staff recommends that the Board approve the action item proposed by staff and discussed at the November 3, 2015 Reno-Tahoe Airport Authority (RTAA) Board Retreat for the initiation of a Reno-Tahoe International Airport (RNO) master planning process. PURPOSE The purpose of this action is to seek approval from the Board of Trustees to move forward with the initiation of a master planning process as discussed at the Board of Trustees Retreat held on November 3, 2015. This action is in support of all five of the RTAA Strategic Priorities: # 1 – Increase Air Service, # 2 – Optimize General Aviation Operations and Services, # 3 – Expand Cargo Development and Service, # 4 – Facilitate Economic Development at Both Airports, and # 5 – Provide a Positive Environment and Experience for All, as adopted in the Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND At the November 3, 2015 Board of Trustees Retreat, the Board held discussions to consider the future development planning of the RTAA. As a result of those discussions, general consensus was reached to consider a comprehensive update of the Airport master plan for the Reno-Tahoe International Airport. An airport master plan is a technical study that represents the airport’s comprehensive guide for long-term development, by documenting an inventory of existing features and then diagramming out future airport development scenarios/alternatives based on a Federal Aviation Administration (FAA) approved forecast; ultimately, illustrating this in the Airport master plan document and Airport Layout Plan (ALP) drawing set. An airport master plan establishes a framework for future capital improvements along with a schedule for the implementation of the proposed development, and a financial plan to support the development. The RNO is currently programmed to receive FAA Airport Improvement Program (AIP) funding for a master plan update, pending availability, in federal fiscal year 2017 (October 1, 2016 – September 30, 2017). On November 23, 2015, staff met with the FAA to discuss accelerating funding into federal fiscal year 2016 (October 1, 2015 – September 30, 2016). The FAA provided verbal approval of this request.


Board Retreat Discussion Follow Up #15(12)-48 December 10, 2015 Board Meeting Page 2 of 2 DISCUSSION Based on discussions from the November 3, 2015 Board Retreat, staff is seeking Board approval to move forward with the following activities associated with the initiation of a master planning process:

i. Obtain concurrence from the FAA on the proposed scope for an airport master plan

ii. Initiate a Request for Qualifications (RFQ) based selection process for an airport master planning consultant

iii. Apply for FAA Airport Improvement Program (AIP) grant funding iv. Initiate public outreach

FISCAL IMPACT An airport master plan, compliant with FAA Advisory Circular 150/5070 standards, is eligible for FAA AIP grant funding. Comparable airport master plans range in cost from $1.5 - $2.0 million. Should the FAA fund a master plan for the RNO at a cost of $2,000,000, the total cost will be divided as follows: $1,875,000 (93.75%) AIP grant funding and $125,000 (6.25%) airport sponsor share. The Airport Authority can fund the airport sponsor share with the general purpose fund or with Passenger Facility Charge (PFC) funds. COMMITTEE COORDINATION This item is not scheduled to be presented at a Committee meeting, but will be discussed at the Board of Trustees meeting, scheduled for December 10, 2015. RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board directs staff to initiate a Reno-Tahoe International Airport master planning process and move forward with the above referenced next steps as outlined above.” MMM/jm/cj

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Date: December 2, 2015 Memo: # 15(12)-49 To: Chairman & Board Members For: December 10, 2015 Board Meeting From: Ann Morgan, Legal Counsel Subject: 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

COMPENSATION COMMITTEE RECOMMENDATION The Compensation Committee recommends that the Board of Trustees (Board) approve a discretionary bonus of $45,760 based on President/CEO Marily Mora meeting 100% of the approved goals for Fiscal Year (FY) 2014/2015, and an increase to salary of 5% or $240,240 annually, 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 a discretionary, non-mandatory cash bonus as additional compensation for her services. The decision to award a bonus is at the sole discretion of the Board, and shall be up to 20% of her then applicable annual salary. Ms. Mora’s salary is Two Hundred Twenty Eight Thousand Eight Hundred Dollars ($228,800.00). Twenty percent of that salary is Forty-Five Thousand Seven Hundred Sixty Dollars ($45,760.00). The amount of the bonus, if any, is to be determined based on Ms. Mora’s achievement of performance criteria and goals established by the Board and provided to her. On December 11, 2014, the Board adopted the performance goals and weights recommended by the Compensation Committee. It is these goals against which Ms. Mora’s performance for FY 2014/2015 is measured for purposes of considering a salary increase and a bonus. A copy of the FY 2014/2015 performance goals and weights approved by the Board is attached as Exhibit A. On November 24, 2015, the Compensation Committee comprised of Chairman Wirth and Trustees Murdock, Carasali and Gianoli, met to review Ms. Mora’s performance as against the approved goals. The Committee received information from Ms. Mora regarding her performance, and discussed that performance with her. A copy of the information presented by Ms. Mora is attached as Exhibit B. The Committee found that the President/CEO was performing at the optimal level for an Airport President/CEO, noting that a review of her performance as against the goals showed that she had met or exceeded every goal established by the Board. The Committee specifically noted that under Ms. Mora’s leadership, the Reno-Tahoe Airport Authority (RTAA) had made significant progress on increasing air service. In addition, she had worked hard to


Performance for FY 2014/2015 - President/CEO Marily Mora # 15(12)-49 December 10, 2015 Board Meeting Page 2 of 2

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establish a good relationship between General Aviation (GA) and the RTAA. The Committee also noted that the RTAA is on solid financial footing, reducing the Cost per Enplanement by almost a dollar from the FY 2014/2015 budget. In the critical area of Safety and Security, the Committee recognized the unprecedented completion of the Federal Aviation Administration (FAA) Part 139 inspection with no discrepancies. Finally, the Committee commended Ms. Mora for her retention of key management staff while thinking creatively and strategically when she replaced departing members of her Executive staff. Based on review of the information received from Ms. Mora, together with the discussion of the Committee, the Committee unanimously recommended that given all goals were met or exceeded for FY 2014/2015, Ms. Mora should receive the maximum bonus allowable, or 20% of her base salary $45,760.00. The Committee also discussed a salary adjustment for Ms. Mora. Pursuant to her contract, as amended, 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 C. The Committee received information regarding the salary and benefits of the RTAA at the Executive level. Brian Moore, Director of Human Resources, advised that management employees are eligible for a merit raise of between 3% and 5%. Eighty percent of the management employees received 5% for FY 2014/2015. The Committee also asked where the RTAA President/CEO’s current salary falls in comparison with other airports. Mr. Moore advised that from the data gathered in January 2015, Ms. Mora’s salary is south of the midpoint of other airport Presidents, CEO’s and Executive Directors. The data relied upon consisted of ACI (Airports Council International) salary survey data, as well as individual inquiries to like airports, as well as McCarran International Airport. Follow up requests to the airports identified in January 2015, to see if the data had changed, were not responded to in time to be included in this board memo. A revised board memo will be sent when such information is received. Based on Ms. Mora’s optimal performance, the Committee recommended a salary increase of 5% or $11,440.00, which increase is retroactive to July 1, 2015 pursuant to contract. FISCAL IMPACT A discretionary Bonus of $45,000.00 was included in the FY 2015/2016 Budget in the event Ms. Mora met all of the Performance Goals. 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 the insurance premiums. RECOMMENDED MOTION It is hereby recommended that the Board approve the following motion: “It is hereby moved that the Board approves a discretionary Bonus to President/CEO Marily Mora in the amount of $45,760.00, and a 5% increase to her salary in the amount of $11,440.00.” AM/cj

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EXHIBIT A

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EXHIBIT B

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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EXHIBIT C

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

the following funding sources:

Employer shall make contributions on behalf of Employee through

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'\ Allcontributions will be made on a pre-tax basis.

Sick Leave Balance

100-199 hours

200-299 hours

300-399 hours

400-499 hours

500-599 hours

Amount of Sick Leave Contributed to

Employee's PEHP Account

5 hours

10 hours

25 hours

35 hours

50 hours

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600-699 hours

700-799 hours

800-899 hours

900-999 hours

1000 or more hours

65 hours

80 hours

95 hours

110 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 contributionswill 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 from a recognized and/or accredited school, institution or

professional association; and the employee has provided all 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

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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

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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 4745 Sommerville Way

Reno, NV 89510 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

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or confidential information that Employee may learn, or, in performance of the services herein for or onbehalf 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 worksarising 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 ofNevada, without reference to conflicts of law principles.

-9-

8157970.1/031669 0002

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.

-10-

8157970 I/03I669 0002

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of $//L>_, 2013.

"EMPLOYER"

RENO-TAHOE AIRPORT AUTHORITY

"EMPLOYEE"

-11-

8157970.1/031669.0002


Date: December 2, 2015 Memo: # 15(12)-50 To: Chairman and Board Members For: December 10, 2015 Board Meeting From: Marily Mora, A.A.E., President /CEO Subject: ACCEPTANCE OF THE COMPREHENSIVE ANNUAL FINANCIAL

REPORT FOR FISCAL YEAR 2014-2015 STAFF RECOMMENDATION Staff recommends that the Board accept the Comprehensive Annual Financial Report for Fiscal Year 2014-2015. PURPOSE This action is in support of the Reno-Tahoe Airport Authority (RTAA) Guiding Principle of Financial Integrity as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan, and establishes transparency in all of the RTAA’s financial transactions. BACKGROUND Nevada Revised Statute (NRS) 354.624 has established that the RTAA must have an annual audit performed by an independent accounting firm, and the opinion and findings of the auditor contained in the report of the audit, must be presented at a meeting of the governing body. Through a competitive Request for Proposals (RFP) process, the RTAA hired the firm of Crowe Horwath LLP (Auditors) in 2014 to serve as the independent accounting firm for a term of five (5) years. This is the second year of the professional services contract and the Auditors performed the audit for FY 2014-2015, which included the Independent Auditor’s Report on Compliance and Internal Control over Financial Reporting. The Annual Financial Report is comprised of the following:

1. Introductory Section 2. Management Discussion and Analysis (“MD&A”) 3. Financial Statements and Accompanying Notes 4. Statistical Section 5. Compliance Section Audit Findings and Responses

In the Compliance Section, the auditors review the Authority’s internal controls and report on the RTAA’s compliance with major federal grant programs, and the Passenger Facility Program. The independent audit firm does not express an opinion on the Introductory Section or the Statistical Section. DISCUSSION Crowe Horwath LLP has examined the RTAA’s financial statements and accompanying notes, and concluded the report fairly represents the financial position. In addition, no material weaknesses or significant deficiencies were identified and reported.

Comprehensive Annual Financial Report FY 2014-2015 # 15(12)-50 December 10, 2015 Board Meeting Page 2 of 9 Effective for fiscal years beginning after June 15, 2014, the Governmental Accounting Standards Board (GASB) issued Statement No. 68, Accounting and Financial Reporting for Pensions with new pension reporting requirements. This statement is intended to improve accounting and financial reporting by state and local governments that participate in multiple employer, defined benefit retirement plans. It also improves information provided by state and local governmental employers about financial support for pensions that are provided by other entities. Unfunded pension obligatons (the “Net Pension Liability”) is a new liability on the Statement of Net Position within the RTAA’s basic financial statements. Pension obligation disclosures have previously been generally limited to the Footnote and Required Supplementary Information (RSI) sections of the financial statements. The statement of Net Position is an accrual-basis statement presented to measure the RTAA’s net ecomomic resources (total assets plus deferred outflows less total liabilities and deferred inflows) as of the end of the fiscal year. The Net Position will now be reduced by the Net Pension Liability. Additional future expenditures and revenues have been introduced into the Statement of Net Position as Deferred Outflows and Deferred Inflows of Resources. An actuarial valuation report was issued by Nevada Public Employees’ Retirement System (NVPERS) for the purpose of calculating the pension liability of the RTAA. The RTAA’s liability on July 1, 2014 was $37,080,313. This liability was reduced during the year by recognizing deferred inflows and outflows of resources as outlined below: Net Pension Liability July 1, 2014 $37,080,313 Add Deferred Outflows: 2015 NVPERS Contributions 4,392,385 2014 NVPERS Contributions (4,249,041) Pension difference between actual and

proportionate share of contribution 264,346 Total Deferred Outflows 407,690

Less Deferred Inflows: Pension difference between projected

and actual earnings (6,172,732)

Pension difference between expected and actual pension experience (1,406,389)

Total Deferred Inflows (7,579,121) Change in Pension Expense (520,647) (520,647) Net Pension Liability June 30, 2015

$29,388,235

The Net Pension Liability at fiscal year end June 30, 2015 was $29,388,235.

Comprehensive Annual Financial Report FY 2014-2015 # 15(12)-50 December 10, 2015 Board Meeting Page 3 of 9 FISCAL IMPACT The RTAA’s financial statements are prepared on the accrual basis in accordance with generally accepted accounting principles (GAAP) promulgated by the GASB. The RTAA is structured as a single enterprise fund with revenues recognized when earned, not when received. Expenses are recognized when incurred, not when paid. Capital assets are capitalized and depreciated over their useful lives. See the notes to the Airport Authority’s financial statements for a summary of the significant accounting policies. The RTAA’s Statement of Operating Revenues, Expenses, and Changes in Net Position (Income Statement) and Statement of Net Position (Balance Sheet) are attached along with a summary explanation of the significant changes. COMMITTEE COORDINATION This item is not scheduled to be presented to a Committee. RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board accepts the Comprehensive Annual Financial Report for Fiscal Year 2014-2015.” MMM/rg/cj

Comprehensive Annual Financial Report FY 2014-2015 # 15(12)-50 December 10, 2015 Board Meeting Page 4 of 9

2015 2014 Change %

Landing Fees $7.92 $7.44 $0.48 6.4%

Concessions 10.34 10.30 0.04 0.4% Parking and Ground Transportation

9.52 8.98 0.53 5.9%

Rentals 13.46 13.28 0.17 1.3% Reimbursements 2.65 2.63 0.15 0.6% Other 0.11 0.04 0.07 208.8%

Total Operating Revenue

$43.99 $42.67 $1.31 3.1%

Employee Wages and Benefits

$24.64 $24.30 $0.34 1.4%

Utilities and Communication

2.76 2.78 (0.02) -0.6%

Purchased Services 4.76 4.77 (0.01) -0.1%

Materials and Supplies

1.58 1.75 (0.17) -9.5%

Administrative 2.11 2.56 (0.45) -17.5%

Total Expenses $35.86 $36.16 ($0.30) -0.8%

Net Operating Revenue

$8.13 $6.52 $1.62 24.8%

Income Statement

(In Millions)


2015 2014 Change %

Net Operating Revenue

$8.13 $6.52 $1.62 24.8%

Depreciation and Amortization

-34.96 -35.82 +0.86 -2.4%

Non-Operating Rev (PFC/CFCs)

+8.15 +8.42 -0.27 -3.4%

Interest Expense -1.38 -1.55 +0.17 -11.0%

Capital Contributions +4.87 +12.21 (7.34) -60.1%

Decrease in Net Position

($15.19) ($10.21) ($4.98) 48.7%

An analysis of significant changes in Net Position (Income Statement) for the year 2014-2015:

While the RTAA enplaned passenger traffic of 1,667,290 was virtually unchanged from the prior year with an increase of 0.8%, the economic recovery in the Northern Nevada economy was reflected in improvement in the RTAA’s total operating revenues of $43.989 million, an increase of 3% from the prior year. Landing Fees and Rentals of $21.374 million represent 41% of the RTAA’s total revenues. Airline landing fees and terminal rental revenues of $13.778 million represents 64% of the total revenues from these two categories, which result from cost recovery provisions of the airline operating and terminal building lease agreements. The landing fee and terminal rental revenues, therefore, reflect RTAA costs to operate and maintain facilities used by the airlines and do not serve as accurate indicators of the level of activity at the Airport. Airline-derived revenue is 31% of total operating revenue.

As depicted in the above table, Concession Revenue of $10.345 million, which includes auto rental, gaming, food and beverage, merchandising, advertising, and other concessions, comprises 20% of the RTAA’s total revenues for fiscal year 2014-15. Concession revenue was modestly above the results in the prior year.

Parking and Ground Transportation revenues account for 18% of total revenue. Parking revenue in FY 2014-15 of $9.516 million increased by $532,020 or 6% above the prior year. The category of revenue is primarily responsible for the increase in RTAA’s operating revenue during FY 2014-15 and reflects higher revenue being generated per transaction due primarily to the improving economy. Currently, the parking rates are set at $1.00 for the first 30 minutes, $2.00 for the first hour, and an additional $1.00 per hour, with maximum amounts of $24.00 per day for short-term, $14.00 per day


for the long-term garage and $10.00 per day for long-term surface lot parking. These rates have remained unchanged since December of 2009.

Reimbursements for Services and Other Revenue make up 5% of total RTAA revenue. Reimbursements for services of $2.647 million represent a slight increase of 1% over last year. The Baggage Handling System (BHS) Charge is the largest revenue source in this category and reflects a 100% cost recovery of the direct maintenance costs of operating the system less any reimbursement from the Transportation Security Administration (TSA) for direct costs associated with their screening equipment. Other revenue of $106,844 represents miscellaneous revenue and late fees collected by the RTAA.

Non-Operating Revenues of $8.146 million decreased 3% as compared to the prior year. This decrease reflects lower interest income, Passenger Facility Charge (PFC) revenue, Customer Facility Charge (CFC) fees on rental car transactions and Jet Fuel revenue. CFC fees and Jet fuel revenue decreased 1% and 7% respectively. Passenger Facility Charges (PFCs) comprise 12% of total revenue. These funds are collected by the airlines based on enplaned passengers and remitted to the RTAA monthly. PFC revenues are down 4% from the prior year. The current collection rate is $4.50. During Fiscal Year 2014-15, the RTAA recorded a Gain on Sale of Capital Assets of $29,533, which included two surplus sales.


2015 2014 Change % Change

Current Assets Cash/Investments $ 60.86 $ 61.90 (1.04) -1.7%

Other 5.48 6.53 (1.05) -16.1% Non-Current Assets

Capital Assets 414.42 437.30 (22.89) -5.2%

Other 1.41 1.40 0.01 0.7% Total Assets 482.15 507.13 (24.98) -4.9%

Deferred Outflows of Resources

5.91 1.37 4.54 +331.4%

Total Assets and Deferred Outflows of Resources

$488.06 $508.50 (20.45) -4.0%


Liabilities

Current $ 12.68 $ 14.62 $ (1.94) -13.3%

Revenue Debt, net 27.80 35.10 (7.30) -20.8% Pension Liabilities 29.39 -- 29.39 n.a.

Other Liabilities 3.26 3.41 0.15 4.6% Total Liabilities $73.12 $53.13 $19.99 37.6%

Deferred Inflows of Resources

7.58 0.00 7.58 n.a.

Balance Sheet

(In Millions)



Net Position Invested in Capital Assets, net of debt

382.23 395.05 (27.57) -3.2%

Restricted 22.46 22.90 (0.44) -1.9%

Unrestricted 2.67 37.43 (34.76) -92.9% Total Liabilities, Deferred Inflow of Resources and Net Position

$ 488.06 $ 508.50

$ (20.45)

-4.0%

Discussion of Net Position (Balance Sheet) for the year ending June 30, 2015 Total assets and deferred outflows of resources of $488.057 million reflect a decrease of 4% or $21.318 million over 2014. Current Assets (unrestricted) decreased by 3% or $1.545 million. This decrease represents a reduction in Grants Receivable of $1.880 million and $353,652 in Other Assets, which reflects lower prepayments of medical insurance and advertising commissions. This decrease was partially offset by an increase in Accounts Receivable of $1.157 million from airlines serving the RTAA and reimbursements due from the Transportation Security Administration (TSA) associated with law enforcement and canine services. Current Assets (restricted) decreased slightly by $539,740 or 2%, a result of lower debt payment requirements and the early retirement of debt funded in the previous year. This decrease was partially offset by an increase of $14,252 in interest receivable. Capital Assets, Net of $414.420 million decreased by $22.881 million or 5% as compared to the prior year. This net decrease resulted from an increase in accumulated depreciation of $34.938 million partially offset by the addition of $19.560 million of new capital assets. With the implementation of Governmental Accounting Standard Board (GASB), Statement 68, “Accounting and Financial Reporting for Pensions” the RTAA recognized two additional deferred outflows of resources. The first item reflects the pension contributions of $4.392 million made by the RTAA to the Public Employees Retirement System (PERS) of the State of Nevada after the net pension liability measurement date of June 30, 2014. In addition, the RTAA’s proportion allocation share and differences between RTAA contributions and its proportionate share of contributions of $264,346, as measured by the actuarial study completed by PERS, was recorded. With the RTAA’s participation in this cost sharing, multiple employer defined benefit plan, an individual employer’s proportionate share will almost certainly change from measurement date to measurement date. Total liabilities and deferred inflows of resources of $80.696 million increased 52% for the year ended June 30, 2015. The RTAA’s total liabilities registered $73.117 million, an increase of $19.990 million or

Comprehensive Annual Financial Report FY 2014-2015 # 15(12)-50 December 10, 2015 Board Meeting Page 9 of 9 38%. This increase is primarily due to the addition of pension liability of $29.388 million per GASB Statement 68. This increase was offset by $7.303 million in lower non-current revenue bonds and a slight decrease in net other postemployment benefits obligation, accrued payroll net of current portion, deposits and reclamation liability. As required by GASB 68 and other associated pronouncements, two deferred inflows of resources were also recorded this year. The first item reflects higher investment earnings between actual results and projected estimates of $6.173 million as of June 30, 2014. The second item is the decrease in the RTAA’s net pension liability of $1,406,608 resulting from differences in economic and demographic factors used in the projected actuarial assumptions and actual experiences. Factors impacting this deferred inflow include employee mortality, payroll increases, retirements, and turnover. The deferred outflows and inflows related to the RTAA’s pension plan will be further explained in the Notes to the Financial Statements under the Item #10, Pension Plan. The largest portion of the RTAA’s total net position each year represents investment in capital assets, less the related indebtedness outstanding used to acquire those capital assets. At June 30, 2015, the RTAA had $382. 231 million of net investment in capital assets. The RTAA uses these capital assets to provide services to the airlines, passengers, visitors and service providers at the Airport; consequently, these assets are not available for future spending. An additional portion of the RTAA’s net position of $22.459 million or 6% at June 30, 2015 represents resources that are subject to use restrictions. The represents a slight decrease of $437,699 or 2% below last year with higher restricted net position attributed to reserves and passenger facility charges offset by low restricted net position associated with debt service. The restricted net position is not available for spending because it has already been committed as follows:

2015 Revenue Bond Operations and Maintenance

$ 6,440,637

Renewal and Replacement 780,402 Passenger Facility Charge Projects 6,526,871 Debt Service-Senior Lien Bonds and Subordinate Lien Revenue Notes 4,320,047 Flood Grant 1,992,135 Bond Reserve Other Reserve Purposes

2,356,115 43,282

$ 22,459,489 As of June 30, 2015, the remaining unrestricted net position of $2.670 million or 0.6% of total net positon may be used to meet any of the RTAA’s on-going obligations. Unrestricted net position decreased 93% or $34.762 million due primarily to recording the pension liability as required under GASB 68.


Date: December 2, 2015 Memo: # 15(12)-51 To: Chairman and Board Members For: December 10, 2015 Board Meeting From: Marily Mora, A.A.E., President /CEO Subject: APPROVAL TO REVISE THE APPROVED FISCAL YEAR 2015-2016

RENO-TAHOE AIRPORT AUTHORITY BOARD OF TRUSTEES CALENDAR TO CHANGE THE DATES OF THE JANUARY 2016 COMMITTEE AND BOARD MEETINGS

STAFF RECOMMENDATION Staff recommends Board approval to revise the approved FY 2015-2016 Reno-Tahoe Airport Authority (RTAA) Board of Trustees calendar to change the dates of the January 2016 Committee and Board Meetings. PURPOSE The purpose of this action is to review and approve a proposed revision to the RTAA Board of Trustees calendar in order to accommodate a change in the dates of the January 2016 Committee and Board meetings. DISCUSSION Per RTAA Bylaw 9341 of the Board of Trustees, the Board shall meet each month as determined by the Chairman, with approval of a quorum of the Board. The monthly meetings of the Board shall be on the second Thursday of each month unless such meeting date conflicts with a holiday as set forth in NRS 236.015, or such other conflict as the Chairman, with the approval of a majority of a quorum of the Board, may determine. The January 2016 Committee and Board meetings are currently set to occur on January 19 and 21, respectively. These dates were established in order to not conflict with the dates of the 30th Annual AAAE Aviation Issues Conference scheduled for January 10-14, 2016. In light of the fact that no members of the RTAA Board or staff are planning to attend the conference, staff recommends revising the dates of the January 2016 Committee and Board meetings to the 2nd week of January. This change will avoid holding the meetings during the week of the Martin Luther King holiday on January 18, as well as allowing for more time in between the January and February 2016 meetings. With that in mind, the Board is being asked to approve the change in the January Committee and Board meeting dates. Staff recommends changing the January 2016 Committee and Board meeting dates to Janaury 12 and 14, respectively. Attached is the 2015-2016 Board Meeting Calendar with the proposed changes in meeting dates highlighted. FISCAL IMPACT None identified at this time. COMMITTEE COORDINATION This item is not scheduled to be presented to a Committee.

Revision to the FY 2015-2016 Board Meeting Calendar # 15(12)-51 December 10, 2015 Board Meeting Page 2 of 2 RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board approves the revision to the Fiscal Year 2015/2016 RTAA Board of Trustee Calendar to change the January 2016 Committee and Board Meeting dates to January 12 and 14, respectively.” MMM/cj

S M T W T F S

1 2 3 45 6 7 8 9 10 11

12 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31

S M T W T F S S M T W T F S S M T W T F S S M T W T F S

1 1 2 3 4 5 1 2 3 1 2 3 4 5 6 72 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 149 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21

16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 2823 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 31 29 3030 31

S M T W T F S S M T W T F S S M T W T F S S M T W T F S

1 2 3 4 5 1 2 1 2 3 4 5 6 1 2 3 4 56 7 8 9 10 11 12 3 4 5 6 7 8 9 7 8 9 10 11 12 13 6 7 8 9 10 11 12

13 14 15 16 17 18 19 10 11 12 13 14 15 16 14 15 16 17 18 19 20 13 14 15 16 17 18 1920 21 22 23 24 25 26 17 18 19 20 21 22 23 21 22 23 24 25 26 27 20 21 22 23 24 25 2627 28 29 30 31 24 25 26 27 28 29 30 28 29 27 28 29 30 31

31

S M T W T F S S M T W T F S S M T W T F S

1 2 1 2 3 4 5 6 7 1 2 3 43 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 7 8 9 10 11

10 11 12 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 1817 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 2524 25 26 27 28 29 30 29 30 31 26 27 28 29 30

BOARD RETREATAAAE CONFERENCE

HOLIDAYCOMMITTEE MEETINGSBOARD MEETINGSMOVED DUE TO HOLIDAY

APRIL MAY JUNE

DECEMBER JANUARY FEBRUARY MARCH

AUGUST SEPTEMBER OCTOBER NOVEMBER

2015-16JULY

BOARD MEETING CALENDAR


Date: December 2, 2015 Memo: #15(12)-52 To: Chairman & Board Members For: December 10, 2015 Board Meeting From: Marily Mora, A.A.E., President/CEO Subject: APPOINTMENT OF TWO NEW MEMBERS TO THE RENO-TAHOE AIRPORT

AUTHORITY COMMUNITY OUTREACH COMMITTEE – GLENN CARANO AND DANIEL FARAHI

STAFF RECOMMENDATION Staff recommends the appointment of two new members to the Reno-Tahoe Airport Authority Community Outreach Committee (COC) – Glenn Carano and Daniel Farahi. PURPOSE The purpose of this action is to appoint two new members to the Reno-Tahoe Airport Authority (RTAA) Community Outreach Committee (COC). This action is in support of the RTAA Strategic Priority # 5 – Provide a Positive Environment and Experience for All, and the Guiding Principle of Customer Service, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND The COC was formed in 1998. It is a Board committee currently chaired by Trustee Jessica Sferrazza. With meetings held on a quarterly basis, the general goals of the committee are to promote greater community input, awareness, and outreach regarding the Reno-Tahoe International Airport and the Reno-Stead Airport (RTS). The effort to attract new members to the COC was presented to the Airport Authority Board of Trustees on October 8 and on November 12, 2015. There are currently two positions open on the 19-member Committee and the Board of Trustees must vote to fill these seats. If approved, these appointments will fill the existing vacancies. DISCUSSION To accommodate the most qualified applicants and achieve the goal of enhanced community outreach, the Board approved a change in the by-laws at the November 2015 meeting, allowing up to 19 members. The Board also approved 17 new appointments to the COC, leaving two remaining vacancies. Non-voting liaisons representing the City of Reno, the City of Sparks, Washoe County and the Reno-Sparks Convention and Visitors Authority (RSCVA) are not counted as committee members. The applications for the two recommended appointees are attached to this board memo. FISCAL IMPACT There is no anticipated fiscal impact associated with this item. COMMITTEE COORDINATION This item is not scheduled to be presented to a Committee.

Two New COC Appointments # 15(12)-52 December 10, 2015 Board Meeting Page 2 of 2

RECOMMENDED MOTION It is hereby recommended that the Board of Trustees adopt the following motion: “It is hereby moved that the Board approves the appointments of Glenn Carano and Daniel Farahi for service on the Reno-Tahoe Airport Authority Community Outreach Committee.” MMM/bk/cj

Air Service • Reno-Tahoe International Airport (RNO) served 295,749 passengers in October 2015, which is up

10.9% versus October 2014. The Airport experienced positive passenger growth for the fifth consecutive month with respect to year over year monthly increases. During the first ten months of 2015, RNO served 2,892,731 passengers, representing an increase of 2.7% when compared to the same period last year. Southwest Airlines, the largest carrier at RNO, carried 132,938 passengers during the month of October 2015, an increase of 8.0% when compared to October 2014. According to Department of Transportation (DOT) data, this is the highest year-over-year monthly increase for Southwest Airlines at RNO since April 2006.

TOTAL PASSENGERS

2013 2014

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

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

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

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

APR 279,418 266,800 -4.5% -3.7%

MAY 295,494 282,277 -4.5% -1.9%

JUN 328,755 316,720 -3.7% 0.8%

2nd Quarter 903,667 865,797 -4.2% -1.5%

JUL 333,321 332,242 -0.3% 5.6%

AUG 322,083 318,965 -1.0% 5.6%

SEP 283,800 284,931 0.4% 4.3%

3rd Quarter 939,204 936,138 -0.3% 5.2%

OCT 262,473 266,701 1.6% 10.9%

NOV 227,213 225,384 -0.8%

DEC 270,051 263,682 -2.4%

4th Quarter 759,737 749,592 -1.3%TOTAL 3,432,311 3,298,915 -3.9%

YTD Total 2,816,024 2.7%2,892,731

295,749

Total Passengers

October-15

985,070

246,571

234,763

277,477

758,811

256,823

276,969

319,309

853,101

350,823

336,948

297,299

Passengers% Diff.

Passengers% Diff.

2015

• In October 2015, RNO was served by nine airlines providing 53 peak daily departures to 15 non-stop

destinations. Total departures at RNO were up 1.8% and the seat capacity increased 4.6% when

President/CEO’s Report November 2015

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

President/CEO’s Report – November 2015 December 10, 2015 Page 2 of 12

compared to October 2014. American Airlines, Delta Air Lines and United Airlines continue to use larger aircraft in select markets to align seat capacity with the growing travel demand.

• Alaska Airlines began non-stop daily flights between RNO and Boise Airport on November 5, 2015.

The airline is utilizing a 76-seat Bombardier Q400 aircraft on this route. • Starting March 16, 2016, Alaska Airlines will begin non-stop daily flights between RNO and John

Wayne Airport, Orange County (SNA). The airline will fly the route with a 76-seat Bombardier Q400 aircraft. It 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.

• Recent and Upcoming Schedule Changes

Alaska Airlines Starting November 1, 2015, the new schedule for non-stop flights between Reno and San

Jose are as follows: San Jose to Reno:

• AS2250 7:35AM-8:34AM • AS2500 6:25PM-7:24PM

Reno to San Jose: • AS2183 6:00AM-7:05AM • AS2253 4:15PM-5:19PM

Starting November 1, 2015, the airline increased the number of daily flights between Reno and Portland from two flights a day to three flights a day.

JetBlue Airways (Seasonal Reduction) November 24, 2015 - January 4, 2016: Daily flight January 5 & 6, 2016: No flight January 7 - February 8, 2016: Four times a week (Thu, Fri, Sun, Mon) February 9 & 10, 2016: No flight February 11 - May 3, 2016: Daily flight.

American Airlines (Seasonal Reduction) The third daily non-stop flight to Dallas will operate from December 18, 2015 until January 4,

2016 The daily non-stop flight to Chicago will resume service on December 18, 2015.

Delta Air Lines The daily non-stop flight between Reno and Minneapolis will operate from December 19,

2015 until January 3, 2016

United Airlines The daily non-stop flight between Reno and Houston will operate from December 17, 2015


until January 4, 2016 The fifth daily non-stop flight to San Francisco will operate from December 17, 2015 until

January 4, 2016

Volaris Starting November 2, 2015, Volaris added a third weekly flight between Reno and

Guadalajara. Volaris offers this route on Mondays, Tuesdays and Fridays. • In October 2015, RNO handled 12,160,586 pounds of cargo, an increase of 6.4% when compared to

October 2014. This represents the best October ever recorded at RNO in terms of cargo lift. RNO handled 108,712,268 pounds of air cargo during the first ten months of 2015, an increase of 5.9% when compared to the same period last year.

TOTAL CARGO

2013 2014Pounds Metric

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

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

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

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

APR 8,639,172 9,876,465 14.3% 10,416,248 4,724 5.5%

MAY 9,398,212 10,269,963 9.3% 10,459,643 4,744 1.8%

JUN 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%

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%

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

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

TOTAL 121,032,935 129,089,232 6.7%

YTD Total 102,648,761 108,712,268 49,303 5.9%

Total CargoOctober-15

% Diff.2015

% Diff.Cargo in Pounds

• Recent and Upcoming Schedule Changes

United Parcel Service (UPS)


Starting September 15, 2015, UPS added eight weekly flights to their schedule at RNO. These additions include six Boeing 757s and two Airbus A300s.

DHL Starting November 1, 2015, Southern Air began cargo flights on behalf of DHL at RNO.

Southern Air replaced one of the Beechcraft 1900 flights with a Boeing 737-400 aircraft, which is a significantly larger aircraft than the Beechcraft 1900.

Parking Comparison

President/CEO’s Report – November 2015 December 10, 2015 Page 5 of 12 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 terminal, where the Nevada Unmanned, Autonomous, and NextGen Collaborative Environment (NUANCE) laboratory will be located. As an incentive to locate the LVC-DE at the Reno-Stead Airport terminal, the RTAA will fund and construct Phase 1 of the NUANCE lab. In order to meet NASA’s 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. The refined Phase 1 design and development improvements are estimated to be under $100,000. Future expansion of the NUANCE lab and NASA operations may require additional buildout of the leased premises. Any subsequent improvements will be funded and constructed by UNR or corporate partners through the standard tenant improvement process. The Nevada Advanced Autonomous Systems Innovation Center (NAASIC) operated by UNR, envisions the NUANCE lab becoming the centerpiece of research and flight testing, translating into economic development opportunities at the Reno-Stead Airport, in Northern Nevada and throughout the rest of the State. In addition to connectivity with NASA assets, the lab will include a workspace and deployment center that will allow NAASIC and its corporate partners to build and repair aircraft at a convenient location near test site airspace, making Reno-Stead Airport a geographic focal point for UAS research activity and UAS economic development in Northern Nevada.

• 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. 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.

President/CEO’s Report – November 2015 December 10, 2015 Page 6 of 12 Reno-Tahoe International Airport (RNO) General Aviation

• CEO Advisory Group on GA Minimum Standards (GAMS) The RTAA hosted a public workshop facilitated by the CEO Advisory Group on December 2, 2015 in the RTAA River Room. The purpose of the workshop was to compare the existing GAMS with the proposed GAMS revisions and seek public input from General Aviation (GA) stakeholders. In addition to reviewing the proposed GAMS, Barbara Smith Campbell of the Ferraro Group and a representative from the Nevada Department of Taxation were available to answer questions regarding aviation tax abatement qualifications, and to provide information on tax reporting and invoicing as a result of Assembly Bill (AB) 161. Representatives from the Economic Development Authority of Western Nevada (EDAWN) were also available to discuss and answer questions regarding the aviation tax abatement qualifications criteria and application process.

• The Atlantic Aviation aircraft ramp reconstruction project is on track to be completed by mid-December 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 FAA Airport District Office (ADO). 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 new fuel storage facility would allow Atlantic to better serve the GA community in a number of ways.

Outside Commercial Properties • 1280 Terminal Way

Tallac Strategies A new twelve-month commercial lease agreement was executed with Tallac Strategies for 297 square feet of office space at 1280 Terminal Way. Tallac Strategies is a start-up public relations/marketing firm and is utilizing the space as a general office. The total contract value is $2,851.20. Rumbaugh Enterprises, Inc. A twelve-month commercial lease agreement renewal was executed with Rumbaugh Enterprises, Inc., dba Superior Sweeping, for 340 square feet of office space at 1280 Terminal Way. Rumbaugh Enterprises, Inc. provides power sweeping and high pressure steam cleaning services, primarily for large commercial building parking lots, and is utilizing the space as a general office. The total contract value is $3,264.00.

RNO Concessions • Retail

Forever Heather, an apparel and accessories boutique retailer that features unique and trendy women’s apparel at reasonable prices, is currently located in the pre-security terminal lobby next to Adventure News. They plan to move back to their initial 2010 post-security location in the B-2 hold room in early December 2015. Forever Heather moved to their current larger, pre-security location in 2011. Following the completion of the Gateway Project, Forever Heather’s sales have suffered, and they are expecting to increase sales with this new post-security location. In order to re-test the market in this new location, there is an initial 4-month term during which a 15% Concession Fee will apply to all monthly gross revenues. If a subsequent term is agreed to, the


current Minimum Annual Guarantee (MAG) of $43,500 will apply along with a 15% Concession Fee on monthly revenues that exceed the monthly MAG. The subsequent term is for a 2-year period and would commence in April of 2016. In addition, one 2-year extension option may be granted at the sole discretion of the RTAA. Both the initial, subsequent and option terms are on a month-to-month basis, as the RTAA intends to retain the B-2 gate hold room for its primary use as an airline gate and will not forfeit this gate for any other primary purpose. Under these conditions, the RTAA has agreed to allow Forever Heather to build a store in the B-2 hold room area, as this gate has not been used in years because it is constrained and can only accommodate small, regional jets. Forever Heather began building its store in the B-2 hold room the week of November 30, 2015.

• Rental Cars The new reconfiguration of the first level of the parking structure is complete. Approximately 140 parking spaces in the center of the first level have been removed from public access in order to accommodate this new design. Striping and signage is installed and this dedicated rental car Return area will open on December 1, 2015. Separating the Return area from the pickup or “Ready” area will result in a more efficient and much safer operation for both the rental car companies and their customers. Handicap and public parking will continue to be available on all levels of the parking structure. Besides increasing the safety and efficiency of the rental car operations in the parking structure, these new dedicated Return parking spaces will provide additional revenue of approximately $177,000 annually to the current rental car program.

Organizational Training & Development • Human Resources (HR) staff presented a series of “Everyday Leadership” classes. This course is

based on Mark Sanborn’s popular book, You Don’t Need a Title to Be a Leader, and reviews six principles that help each of us be a leader in our daily work (and lives!) to make a positive difference, regardless of our title or position. Participants completed an individual Strengths-Weaknesses-Opportunities-Threats (SWOT) analysis as part of completing a personal “blueprint” for leadership.

• HR Staff coordinated respiratory protection classes for specific Maintenance employees. Taught by

Airport Firefighters, this training is an Occupational Safety and Health Administration (OSHA) requirement for any employee who wears any type of respiratory protection in the course of doing his/her job.

• Members of the RTAA Leadership Program Book Club presented their conclusions and experiences

upon reading the book The Leadership Challenge to Management Roundtable. The Book Club met approximately every three weeks. Each member was responsible to lead discussion on an assigned chapter with the assistance of an “executive mentor”.

• HR staff coordinated the quarterly Town Hall meetings. Approximately 150 employees attended the

meetings to hear updates from management and to discuss employees’ questions submitted in advance. This quarter’s topics included: “Celebrations” (new hires/promotions/anniversaries), a Think Tank update, THRIVE “Enthusiasm for Excellence” activities, the Thanksgiving parking plan, an update on Unmanned Aerial Systems (UAS) outreach program, and an update on the Caring Campaign.

• HR staff taught “Beginning Word” computer classes in which participants learned the basics of

formatting documents.

President/CEO’s Report – November 2015 December 10, 2015 Page 8 of 12 • HR staff presented six health insurance Open Enrollment meetings for employees throughout the

month. These presentations included information on the change from a fiscal plan year to a calendar plan year; current plan claims costs, and the changes employees can make to their benefits during this time. Open Enrollment concluded on December 3, 2015.

• The new organizational wellness initiative called “THRIVE for Wellness” was launched in January

2015 and continues to experience great success. This year long program follows along with the new Values initiative in that each letter of THRIVE has taken on a wellness oriented theme. To represent the “V for Versatility” in THRIVE, September/October’s wellness theme was “The Versatile World of Vaccines!”, and included onsite flu and pneumonia clinics, employee information about various vaccinations, and what is and isn’t covered by our health plan. For the “E for Enthusiasm for Excellence” in THRIVE, November/December’s wellness theme is “Let’s Show some Enthusiasm for Exercise!”

• The RTAA Holiday Party will be held at the Eldorado Hotel and Casino on Saturday, December 5,

2015. The annual recognitions of the THRIVE Most VALUE-able Player Award recipients and 2015 President’s Award recipient will be announced at the party.

Miscellaneous Information • The Airport’s social media strategy continues to be a success. Facebook followers are at 10,564 with

a monthly post reach of 1.63 million, and Twitter is now at 4,777. Staff recognized the 10,000 Facebook fan with a Southwest Airlines gift card. 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 partnered with the Squaw Valley Properties to submit a bid for the Boyd Conference, which is the International Aviation Forecast Summit that brings together more than 400 aviation professionals, including CEOs and top airline officials. The annual conference would take place September 18 – 21, 2016 near the Squaw Valley Olympic Village, offering a Gold Medal experience for this event, and raising the profile of the Reno-Tahoe region among top aviation representatives. Final selection for this conference is anticipated to be made in early 2016.

• Airport staff joined the Paws 4 Passengers volunteer team and the KindnessTakesFlight employee

volunteers to work throughout the terminal during the peak travel days before and after Thanksgiving. Almost 200 bags of candy, with a personalized RNO message of thanks included, were handed out to passengers. Staff collected videos of Airport visitors, recording what they were thankful for, and then posted the videos on social media sites.

• A special drone outreach and education session that included demonstrations was held on December 2nd. The session was conducted in partnership with the regional office of the Federal Aviation Administration (FAA). Local news media outlets were given a presentation explaining the regulations surrounding safe drone flying. This was the first of an ongoing public outreach campaign that will be led by RTAA Operations to educate the public, due to the high number of drones expected to be purchased this holiday season.

• Multiple television, radio and newspaper interviews were conducted during the Thanksgiving

holiday. Live television broadcasts occurred throughout the day, from 4:30 am to 6:30 pm on the Wednesday before Thanksgiving, and again on the Sunday after the holiday.

President/CEO’s Report – November 2015 December 10, 2015 Page 9 of 12 • Staff will welcome the economic development representatives from rural Nevada communities on

December 9th at a dinner meeting for the Western Nevada Development District (WNDD). The group will tour Reno-Tahoe International Airport, the FAA Control Tower, and Atlantic Aviation. Presentations will be made regarding future development and cargo opportunities at RNO, and the attendees will see a demonstration by our K9 team.

• Staff is working with the Reno-Tahoe Aviation Group (RTAG) and Atlantic Aviation to host the

2015 Operation Santa Claus on December 12th. This annual event gives local families in need from the Children’s Cabinet an opportunity to enjoy a warm Christmas celebration, complete with a parade of nearly 20 aircraft, from small, single engine private planes, to a C-130 from the Nevada Air National Guard (NANG) with Santa Claus on board. Each family is treated to lunch, given gifts for the whole family, and provided with a decorated Christmas tree for their home.

• The Caring Campaign published a year-end review of donations made by the RTAA to the Food Bank of Northern Nevada (FBNN):

• Based on the success of the inaugural event held in Reno last year, the American Association of Airport Executives (AAAE) held its 2nd Annual UAS Issues and Integration Conference in Las Vegas on November 8-10, 2015. RTAA staff from four separate departments participated in the conference, along with about 150 other, primarily airport folks from all over the country. The 2-day conference was comprised of a continuous series of sessions addressing key topics in this emerging industry, including a regulatory update from the FAA and discussions on insurance, privacy, workforce development, and market potential. Two linked sessions entitled “Managing the Challenges of UAS Integration Part 1: From the Eyes of the Pilot, Controller, Airport Operator and States”, and “Part 2: Operator and Manufacturer Point of View”, allowed experts from six different perspectives to share their thoughts and concerns regarding integration. The final two hours of the conference was a fully interactive workshop on airport-related challenges, and the materials developed by the RTAA for our public outreach and education program were the featured topic of the discussion.

• The annual University of Nevada Reno (UNR) ROTC (Reserve Officer Training Corp) Fall

Leadership Development exercise was held at Reno-Stead Airport on November 19-22, 2015. 100 cadets and 9 instructors were involved in the three day training exercise conducted on Airport Authority land located adjacent to the Reno-Stead Airport. The training event was formatted as a Squad based competition to develop teamwork and leadership, and incorporated basic survival training, Squad combat tactics, day and night time navigation, and map reading. The cadets were housed at the Nevada National Guard training facility located on the Airport. The RTAA is very proud to support UNR and the ROTC program.

• Transportation Network Company (TNC) Update

Currently TNCs Uber and Lyft are authorized to operate in the State of Nevada. In an effort to expedite our customers’ access to this new mode of transportation, RTAA staff reached out and have met multiple times with TNC representatives from both Uber and Lyft to discuss Ground Transportation (GT) operations at the Reno-Tahoe International Airport (RNO).

$12,233.00 payroll deductions; according to FBNN that total equals 36,700 meals 2,024 pounds of food 232.5 hours of time $843.95 in cash (includes gift cards, fuel, and cash)


All GT operators are allowed to drop passengers off curb-side, free of charge. However, passenger pick up requires that a GT Permit be acquired from the Airport and a per trip fee be paid for passenger pick up. Passenger pick up is restricted to the GT Area located outside the baggage claim area through Door D. The GT Area is defined by a perimeter fence that has been installed at a distance of 300 feet from the terminal building, per Transportation Security Administration (TSA) requirements. Vehicles within 300 feet of the building may not be left unattended by drivers. The perimeter fence is equipped with gate arms and apparatus that tracks GT provider movements using transponders that activate the gate arms via Automated Vehicle Identification (AVI) equipment. The AVI system provides vehicle tracking and reports that support the monthly billing cycle as well as internal audit of those collections. RTAA staff offered and encouraged TNCs to begin operations immediately as long as they agreed to meet the requirements that all other GT providers follow as outlined in the current GT Permit. This includes the installation of AVI transponders on their fleet of independent contractor vehicles. Both TNCs have declined to operate under the Airport’s current guidelines, and instead have expressed interest in making modifications to the existing permit requiring that passenger pick up takes place exclusively in the GT Area. Staff is currently exploring the cost of infrastructure and staffing required to bill, track, and audit TNC movements on Airport property. Staff will keep the Board apprised of these efforts and negotiations to that end. Also of note is that, although it initially looked like everything was wrapped up at McCarran International Airport (LAS), as of this week only Lyft has successfully negotiated to enter the GT market at LAS, while the Uber negotiations hit another road block.

• Stead Solvent Site Remediation System The Nevada Division of Environmental Protection (NDEP) has approved a Non-Operation Test (NOT) shutdown of the Stead Solvent Site Remediation System. The NOT is scheduled to commence in December 2015 and will be conducted by suspending groundwater extraction from all currently operational Dual Phase Extraction (DPE) and Groundwater Extraction (GWEX) wells. The objective of the NOT will be to determine whether continued groundwater extraction for containment and contaminant mass removal is necessary, or alternately, if the system can be optimized to progress the site towards conclusion of remedial action and a No Further Action (NFA) determination by attaining the Alternative Concentration Limit (ACL) for TCE of 37.5 μg/L.

• 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 $13,050 in electrical costs were saved as a result of the solar system during the current 2015-2016 fiscal year period.


Power Generation October 2015 FY 2015-2016

Energy Offset from Monthly Bill $2,628 $12,619 Energy Credits Banked $0 $431 Banked Credits Applied ($20) ($30) Total Earned $2,608 $13,050 Banked Credits Remaining NA $11,284

• Recycling at Reno-Tahoe International Airport

Beginning July 2015, Airport staff has successfully collected approximately 24.92 tons of recyclable material during the FY 2015-2016 period. These recyclables equate to an 8.46 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 November 2015 (Tons)

FY15-16 (Total Tons)

Cardboard 3.64 11.46 Mixed Paper 0 6.18 Glass 0 0 Batteries 0.025 0.15 Beverage Containers 0 7.13 Total 3.66 24.92

Quarterly Strategic Plan Update

Next Quarterly Strategic Plan Update – January 2016 Report

Legislative/Government Affairs Update • As per previous reports, McDonald·Carano·Wilson (MCW) continues to meet with incumbents and

candidates for local and State offices, and also attends political fundraisers. Recent meetings include:

Senate District (SD) 6 candidate Nicole Cannizzro SD 5 candidate Carrie Buck SD 18 incumbent Senator Scott Hammond SD 9 incumbent Senator Becky Harris Congressional candidate/Senate Majority Leader Michael Roberson Assembly District (AD) 10 candidate Chris Brooks AD 21 candidate Ozzie Fumo AD 26 candidate Jason Guinasso AD 24 incumbent Amber Joiner Jeb Bush Hispanic “Get Out the Vote” Director City of Reno Councilwoman Neoma Jardon

President/CEO’s Report – November 2015 December 10, 2015 Page 12 of 12 • In order that RTAA staff may effectively track races, MCW developed a matrix of races and

candidates that will be updated periodically. • MCW staff also attended a number of political meetings and reported in real time to the RTAA on: Clark County Commission – monitor the TNC debate Southern Nevada Forum Economic Development Committee - Jon Daniels, President of Praxis

Aerospace Concepts International, Inc., presented on UAV/UAS developments in Nevada. Mr. Daniels shared that 20 individual companies have received FAA approval/waivers for commercial operations, primarily related to infrastructure (e.g. utility company structure inspections), and agriculture

Governor’s Office of Economic Development (GOED) Board meeting - aviation abatements • MCW also: Attended the National Business Aviation Association (NBAA) reception and conference in Las

Vegas as a guest of NBAA Conducted outreach to several businesses on behalf of the Regional Air Service Corporation’s

(RASC’s) campaign for the Southwest Airlines Oakland flight Provided access to expertise regarding renewable energy Attended the Washoe Democratic Party’s annual Virginia Demmler Honor Roll Dinner, where

city council members were honored

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