NOTICE OF PUBLIC MEETING PHOENIX AVIATION ADVISORY ...

NOTICE OF PUBLIC MEETINGPHOENIX AVIATION ADVISORY BOARDPursuant to A.R.S. Section 38-431.02, notice is hereby given to the members ofthe PHOENIX AVIATION ADVISORY BOARD, and to the general public, thatthe PHOENIX AVIATION ADVISORY BOARD will hold a meeting open to thepublic on Thursday, January 20, 2011, at 3:00 p.m. located at Terminal 3,Phoenix Aviation Advisory Board Conference Room, Third Floor, WestMezzanine, 3400 E. Sky Harbor Blvd., Phoenix, Arizona.Pursuant to Arizona Revised Statutes, Section 38-431.02B, notice is given thatthe Phoenix Aviation Advisory Board may vote to go into Executive Session, orSessions, for discussion or consultation, for legal advice with the attorney orattorneys of the public body for any agenda items listed below, as authorized byArizona Revised Statutes, Section 38-431.03 (A)(3) or for discussion of recordsand/or information that is exempted by law from public disclosure, as authorizedby Arizona Revised Statutes, Section 38-431.03(A)(2). If authorized by amajority vote of the Phoenix Aviation Advisory Board, the Executive Session willbe held immediately after the vote and will not be open to the public. If adecision is requested, the Phoenix Aviation Advisory Board may decide thematter in the public meeting or defer the decision to a later date. The agendaitems that may be subject to an Executive Session pursuant to Arizona RevisedStatutes, Sections 38-431.03 (A) (2) and 38-431.03 (A) (3) are as follows: Items5, 6, and 7.One or more board members may participate via teleconference. Agenda itemsmay be taken out of order.The agenda for the meeting is as follows:1. Call to Order Chairman Cohn2. Announcements/Reports by the Aviation Director Mr. Danny Murphy3. Announcements/Reports by the Airline Station Mr. Gregg HurtManager4. Approval of the December 16, 2010 Meeting Chairman CohnMinutes5. Swissport Ground Operations Facility Land Leaseat Phoenix Sky Harbor International Airport (PHX)Ms. Roxann FavorsThis item is for discussion and action.6. Salt River Project Corporate Hangar Lease atPhoenix Sky Harbor International Airport (PHX)Ms. Roxann FavorsThis item is for discussion and action.1

7. Sky Harbor Parking Coupon CampaignMr. Chad MakovskyMs. Lynda DoddThis item is for information and discussion.8. Advisory Board Information and Follow-Up Chairman CohnRequests (not for discussion or recommendation)9. Call to the Public: This is the time for the public to Chairman Cohncomment. Members of the Board may not discussitems that are not specifically identified on theagenda. Therefore, pursuant to A.R.S. Section 38-431.01(G), action taken as a result of publiccomment will be limited to directing staff to studythe matter, responding to any criticism, orscheduling the matter for further consideration anddecision at a later time.10. Adjournment Chairman CohnFor further information, please call Kate O’Malley, Management Assistant I,Aviation Department at 602-273-2075.For reasonable accommodations, please contact Kate O’Malley/AviationAdministration at Voice/602-273-2075 or TTY relay 1-800-781-1010 as early aspossible to coordinate needed arrangements.The next Phoenix Aviation Advisory Board meeting is scheduled to take placeThursday, February 17, 2011.2

City of Phoenix Aviation DepartmentPhoenix Aviation Advisory Board MinutesDecember 16, 2010Board Members PresentAndrew CohnBenito AlmanzaArt HamiltonGregg HurtJack TevlinPatty JohnsonPete GorraizVerma PastorBoard Members AbsentAlan PowellVince RoigStaff PresentDanny MurphyPaul BlueTamie FisherAlisa SmithBecky GawinCarolina PottsChris WareCommander HaileyCorey WilliamsDavid HensleyFrederick BurkeJay DeWittJeff FolandJo Ellen McBrideJulie RodriguezKate O’MalleyLaVonne MorrisMary Beth ThompsonPaul NormanSeyed NaghibzadSteve GrubbsPublicEmily GersemaGregory E. TorrezHeather Callahan3

Item 1 – Call to OrderChairman Cohn called the meeting to order at 3:05 PM.Item 2 – Announcements by the Aviation DirectorMr. Danny Murphy provided an update on passenger numbers. He introduced Mr. JohnBerry as the newest Board member and said farewell to Mr. Paul Blue who will beleading the Community and Economic Development Department beginning in January.Item 3 – Announcements by the Airline Station ManagerMr. Hurt provided an update on the status of Frontier and the other airlines servingPhoenix Sky Harbor International Airport.Item 4 – Approval of the November 18 Meeting MinutesMs. Johnson motioned for approval of the minutes. Mr. Almanza seconded the motion.Motion approved 8:0.Item 5 – Sound Insulation Mitigation Services (SIMS) UpdateMs. Mary Beth Thompson provided an update on the Sound Insulation MitigationServices (SIMS) program and its successful completion of construction on its firstnonresidential building. She also outlined an upcoming construction project.Mr. Berry asked how projects are prioritized. Ms. Thompson responded that the grouptried to pick one project in each category, and chooses the places most impacted bynoise first.Chairman Cohn commended staff for their hard work, and asked to see the finishedproject.Ms. Pastor asked if people have to apply for the program. Ms. Thompson confirmedthat people could apply for the residential mitigation program.This item was for information only. No action was required.Item 6 – PHX Airfield Construction Project UpdatesMr. David Hensley provided an update on various airfield construction projects atPhoenix Sky Harbor International Airport.Mr. Hamilton asked how Runway Status Lights were triggered. Mr. Hensley respondedthat radar at the airport detects transponders or other objects on active runways andtaxiways.4

Chairman Cohn asked if movement of the service road near 24 th Street would be offsetby right-of-way adjustment. Mr. Hensley responded that it would, but that the serviceroad would still remain airside.Mr. Hamilton asked for a follow-up on the rate of capacity for flow of the Salt River. Mr.Hensley confirmed staff would follow up.This item was for information only. No action was required.Item 7 – Advisory Board Information and Follow-Up RequestsNone.Item 8 – Call to the PublicNone.Item 9 – Airport Security UpdateMr. Gorraiz made a motion to go into Executive Session for an Airport Security Update.Ms. Johnson seconded the motion. Chairman Cohn noted that the meeting wouldadjourn immediately following Executive Session. Motion approved 7:0.Item 10 – AdjournmentMs. Pastor motioned for adjournment. Ms. Johnson seconded the motion. Motionapproved 7:0. Meeting adjourned at 4:28 PM.5

To:From:PHOENIX AVIATION ADVISORY BOARD REPORTPhoenix Aviation Advisory BoardDanny W. MurphyAviation DirectorSubject: Swissport Ground Operations Facility Land Lease at Phoenix Sky HarborInternational Airport (PHX)This report requests the Phoenix Aviation Advisory Board’s recommendation to enterinto a new land lease agreement with Swissport Fueling (Swissport) to lease up to25,000 square feet of land as a ground operations support facility at Phoenix SkyHarbor International Airport (PHX).BACKGROUNDSwissport has operated its ground operations support facility from this leased land since1972. This facility, originally constructed by a Swissport predecessor, will remain aspart of the land lease and function as office and breakroom facility for Swissport fuelingstaff. This facility is located west of Terminal 2. A recent audit of the existing Swissportleases at PHX found that the existing lease did not contain necessary lease provisionsrequired by Federal Grant Assurances. The audit report indicated that the existinglease should be terminated and a new lease agreement should be executed. SwissportFueling desires to enter into a new lease agreement.DISCUSSIONSwissport and the Aviation Department have agreed to the following business termsand conditions subject to City Council approval:• The lease term is five (5) years with 3 one-year renewal options, to be exercised atthe sole discretion of the Aviation Director.• Lessee will pay an annual rental rate of $0.73 per square foot for the first year of thelease.• In subsequent years the rent will be adjusted annually in accordance with theConsumer Price Index (CPI).• Lessee will be responsible at its sole expense for the cost of tenant improvements,maintenance of its improvements including the existing building structure and theleased premises, and all janitorial and custodial services of cleaning and trashremoval associated with the leased premises including both the interior and exteriorof the building structure.• Lessee is responsible at its sole expense for the cost of utilities including water,sewer, gas, electric and phone services used during the term of the lease.• The lease will contain other terms and conditions deemed necessary by the City.RECOMMENDATIONThe Aviation Department requests the Phoenix Aviation Advisory Board’srecommendation to enter into a new lease agreement with Swissport Fueling to leaseup to 25,000 square feet of land located west of Terminal 2 at Phoenix Sky HarborInternational Airport. This item was recommended for approval by the Business andDevelopment Subcommittee on January 6, 2011.6

To:From:PHOENIX AVIATION ADVISORY BOARD REPORTPhoenix Aviation Advisory BoardDanny W. MurphyAviation DirectorSubject: Salt River Project Corporate Hangar Lease at Phoenix Sky HarborInternational Airport (PHX)This report requests the Phoenix Aviation Advisory Board’s recommendation to leaseapproximately 14,484 square feet of hangar and office space located at 2601 East AirLane at Phoenix Sky Harbor International Airport (PHX) to Salt River Project (SRP) foraircraft storage.BACKGROUNDSRP currently occupies the corporate hangar located at 2601 East Air Lane under alease agreement set to expire March 31, 2011. SRP has been a tenant at Sky Harborsince 1987.DISCUSSIONSRP and the Aviation Department have agreed to the following business terms andconditions subject to City Council approval:• The lease term is five (5) years with two (2), one-year renewal options, to beexercised at the sole discretion of the Aviation Director.• Lessee will pay an annual rental rate of $7.80 per square foot for the first year of thelease.• In subsequent years, annual rent will be adjusted annually in accordance with theConsumer Price Index (CPI).• Lessee will be responsible at its sole expense for the costs of any tenantimprovement, maintenance of its improvements, normal wear and tear of the hangarand custodial and janitorial services.• The City will maintain the roof, exterior walls, hangar doors, foundation, cement slabfloor, and all mechanical, plumbing and electrical systems including the firesuppression system and heating, ventilation, and air conditioning/cooling (HVAC)systems.• Lessee will be responsible at its sole expense for commencing utilities includingwater, sewer, gas, and electric services and for paying directly to each supplier therecurring service charges for these utilities used during the term of the Lease.Lessee is responsible at its sole expense for commencing telecommunication utilityservices including telephone, cable and/or internet services with each supplier andfor paying directly to each supplier the recurring service charges for thesetelecommunication services.• The lease will contain other terms and conditions deemed necessary by the City.RECOMMENDATIONThe Aviation Department requests the Phoenix Aviation Advisory Board’srecommendation to lease approximately 14,484 square feet of hangar and office spacelocated at 2601 East Air Lane at Phoenix Sky Harbor International Airport (PHX) to SRPfor aircraft storage. This item was recommended for approval by the BusinessDevelopment Subcommittee on January 6, 2011.7

PHOENIX AVIATION ADVISORY BOARD REPORTTo: Phoenix Aviation Advisory BoardFrom: Danny W. MurphyAviation DirectorSubject: Sky Harbor Parking Coupon CampaignAviation Department staff will provide a status update the airport parking couponprogram.BACKGROUNDThe Aviation Department’s Operations Division oversees the Phoenix Sky HarborInternational Airport’s public and employee parking programs. Parking revenues havegrown to be the largest non-aeronautical revenue generator for the Department’soperating budget. Since 2007, declines in passenger volumes have reduced parkingdemand and associated revenues. The Department is proactively taking measures toreduce parking operating costs and stimulate demand. The parking coupon campaignis one such program.DISCUSSIONThe Aviation Department launched a coupon program as a pilot in July 2009 tostimulate demand in terminal garages. The program provided for discounted terminalgarage parking to manage capacity in the economy lots during peak use periods. Bydiverting customer demand into the terminal garages, the need to open overflow lotsand operate additional buses is diminished.The 40% discount coupon allows customers to park in the terminal garages for $15during the coupon period. Customers can find the coupon on the Airport’s website andaccess the coupon by answering a few questions. The survey identifies how thecustomer would have utilized airport facilities had the coupon not been available.Based on survey results, the airport generated approximately $767,000 in new revenuebetween July 2009 and November 2010.Staff will discuss the coupon program in more detail, and will identify plans to offersimilar incentives through 2011.RECOMMENDATIONThis report is for information only. No action is required.8