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SAVANNAH AIRPORT COMMISSION

August 4, 2010

 1. Call to Order by Chairman Formey

 2. Approve Minutes of Previous Meeting ~ July 8, 2010

 3. Recognition of Visitors

 4. Presentation of First in Service Award ~ Sharon Harris

 5.            Presentation of Employee Awards ~ Bob Uhrich - 15 years

   Bruce Davidson - 5 years

   Aaron Roberts - 5 years

CONTRACTS AND AGREEMENTS

 6. Execute New Airline Lease and Operating Agreement with US Airways. The five primary air carriers have each been provided with new Airline Lease and Operating Agreements that are based on a fixed rent rather than the previous calculations whereby signatory airlines held the power to control rental rate increases and airport improvements. US Airways has executed their agreement and is requesting Commission approval for a 5-year term. Rental rates for terminal space will be $48.50 per square foot for calendar year 2010 and will increase incrementally over the five-year term period.

 7. Terminate ASR-11 Lease Agreement # DTFA06-04-L-00155 (FAA). The Commission signed a lease agreement with the FAA for the ASR-11 site in March 2005 for approximately 0.92 acres of land plus access easements and temporary construction easements of approximately 3.03 acres for the installation of an Airport Surveillance Radar site. The FAA has not constructed the facility on the site as planned nor do they intend to due to the FAA’s shift towards deploying GPS-based navigational systems in the future. After several requests, the Staff has obtained confirmation from the FAA for the site to be released back to the Commission and the lease terminated. Although the FAA has provided documentation in the form of letters releasing the Commission from the lease agreement, Staff is requesting formal termination of the lease.

 8. Terminate Land Lease Agreement with Far Winds, LLC. Far Winds, LLC is located in a hangar whose ownership reverted back to the Commission in 1999. A new lease agreement was executed at that time for a 15-year lease period. Far Winds, however, has requested to be released from the lease as of September 1, 2010. They have accepted our offer to pay $13,000 towards the remaining $21,000+ due on the amortization schedules associated with improvements to the facility. The lease will terminate as of August 31, 2010.

9. Execute New Space Lease Agreement with FAA (Manufacturing Inspection Satellite Office). The MISO unit of the FAA has been leasing 204 sf of space on the 2nd level of the terminal building since December 2007. Staff now wishes to reclaim that leased space and has offered to relocate the MISO to 190.6 sf offices located in former airline ramp operations area on Level #1. The new lease agreement will be effective October 1, 2010 and will terminate September 30, 2015. The monthly lease for the new space will be $2,935.24 annual / $244.60 monthly.

10. Terminate Agreement with Solo Vending. Ms. Kim Jackson has requested that her Lease and Concession Agreement be terminated as of July 31, 2010. She leases space only in the Airport Business Center, which was vacant for a number of months after Sitel left. Even with the new tenant on the first floor, Goodwill Industries, Ms. Jackson reports that sales are not sufficient to cover her operating costs for the machines.

11. Approve New 5-Year Airport Property Appraisal Values. Every five years the Airport awards a contract to a local MAI appraiser to perform an overall-airport appraisal, upon which increases in the lease rates for land tenants are based. The only appraiser to submit a bid for the appraisal for 2010 was Don Lindner of Coastal Realty Associates. Mr. Lindner completed the appraisal by May 3 as requested; however, there were several areas that required additional clarification and correction. Staff has been researching and re-evaluating certain areas and will be presenting recommendations to the board at the August meeting for the proposed new valuations of airport properties (see attachment).

12. Approve Airways Avenue Rehabilitation, Change Order #1 - $67,342.50. The pavement on McKenna Drive, Gulfstream Road, and east-bound Airways Avenue between I-95 and Patrick S. Graham Drive has exceeded its useful life and is beginning to fail. The asphalt has dried out and is cracking (letting in water) and potholes are beginning to form. The integrity of the pavement surface must be restored to protect the underlying base and subgrade materials to prevent failures which would require an expensive complete rebuild of the road. The contractor will restore the surface of the road. This will be done by making the necessary repairs and then recycling the pavement (grinding the surface asphalt and adding enough rejuvenating agent and new asphalt to re-lay pavement). Failure of the pavement has been accelerated by excessive heavy truck traffic not on airport business but using the route as a short-cut between S.R. 21 and I-95/Pooler Parkway. Since the original contract was bid and awarded to H.I.P. Paving, LLC in 2009, the airport has revised its development plan, and most of McKenna Drive may be incorporated into a new development area. We propose to delete the portion of McKenna Drive in the new development area from the rehabilitation contract and instead rehabilitate (at the same unit price) in-bound Airways Avenue (a 2010 budgeted project) pavement that is 15 years old and wearing out. Funds are available by combining the 2009 award and the 2010 budget. This was bid as a unit-price contract; the Change Order accommodates the slight differences in the selected areas. Recommend award of $67,342.50 to H.I.P. Paving, LLC to make the change.

Recap:      Budget      Cost

2009 Contract award $117,300.00

2010 Budget $126,830.00

Airways Avenue East Bound $174,517.50

McKenna Drive __________ $  10,125.00

$244,130.00 $184,642.50

Airways Avenue Rehabilitation

A.            McKenna Drive removed from contract:  10,290sy @ $7.50/sy =                       ($77,175.00)

B.            Airways Avenue Entrance 23,269sy @ $7.50/sy =                                                $174,517.50

C.            Area in original contract that will not be affected by development and needs to be repaired:

McKenna in front of Fire Station 500 lf X 24’ = 1,350/sy @ $7.50/sy =            $  10,125.00

D.            Area removed from original contract that will be affected by development and may not need to be rehabilitated

McKenna @ PSG & Gulfstream 1,000 lf X 36’ = 4,000 sy @ $7.50/sy =     ($  30,000.00)

New TOTAL B+C = $174,517.50 + $10,125  =                                                            $184,642.50

Less original contract                                                                                                      ($117,300.00)

Change Order #1                                                                                                $  67,342.50                       

MISCELLANEOUS

13. Calendar of Approaching Events September 1 ~ 9 AM SAC Meeting

October 6 ~ 9 AM SAC Meeting

November 3 ~ 9 AM SAC Meeting

 14. Executive Session

 15. Adjourn

Delta Air Lines has notified Savannah/Hilton Head International that it will continue to offer discounted air fares between the Savannah and Atlanta markets. The lower fare structure was introduced in February after community leaders, Bill Hubbard, Joe Marinelli, and Bill Miles voiced concerns about the high cost of air travel between the two cities with Delta officials stating at the time that they would evaluate passenger traffic after a four month test period. Based on the positive response from travelers during that test period, Delta has agreed to keep the lower fare structure in place going forward. 

            Patrick Graham, Airport Executive Director, expressed his appreciation to passengers for supporting Delta during the test period, and is pleased that the airline is going to continue offering the lower fares. 

            The discounted prices for travel between Savannah and Atlanta include a seven-day advance purchase roundtrip fare for $300 and a walkup fare for $400. Some fares as low as $89 each are available for more advanced purchase with limited travel periods. These prices aren’t available for every seat on every flight, but represent approximately a 40% discount over fares previously offered.

            Delta Air Lines along with Delta Connection, offers 12 daily nonstop flights from Savannah/Hilton Head International to Atlanta’s Hartsfield-Jackson International Airport, as well as three nonstop flights to New York’s La Guardia Airport and two nonstop flights to Detroit Metropolitan Airport.

Savannah/Hilton Head International personnel will conduct a live security exercise Thursday, July 15, 2010 from 7:00 a.m. until 10:00 a.m. The exercise will include inspections of vehicles approaching the Terminal, as well as other security related measures that may not be visible to the traveling public. During this time passengers should encounter minimal delays on Airport roadways. The exercise is part of the Airport’s ongoing security training program.

Passengers are reminded to arrive at the Airport 90 minutes prior to flight departure time. This is especially important for early morning flights, as extra time may be needed to park, check baggage and clear security.

For more information contact Lori Lynah, Director of Marketing, at (912) 964-0514, ext. 3304.

SAVANNAH AIRPORT COMMISSION

June 1, 2010

 1.       Call to Order by Chairman Formey

 2.       Approve Minutes of Previous Meeting ~ May 6, 2010

 3.       Recognition of Visitors

 4.       Presentation of First in Service Award ~ Militza Encarnacion (Delta)

 5.       Commissioner Shirley B. James: 2010 Top Ten Working Women of the Year

 6.       Announce Receipt of Tandus Environmental Stewardship Award

CONTRACTS AND AGREEMENTS

7.        Approve Letter of Intent/Options Policy. The changes discussed at the May meeting have been incorporated into the below policy:

Description.  The Commission issues Letters of Intent to prospective lessees of Commission land to allow the potential lessee time to complete a due diligence process on a project that they wish to construct or lease the land from the Commission.

Issuance of Letters of Intent. The Commission authorizes the Executive Director to approve LOI for a 90-day period to allow potential lessees time to complete a due diligence process.

The Commission further authorizes the Executive Director to extend LOIs that have been issued for 90-days for up to an additional 90-day period based on information being supplied by the potential lessee to the Executive Director.

Options. Potential land lessees can enter into an option to lease land with the Commission based on 10% of the rent that the lessee would pay if the lessee actually leased the land. Options can only be approved by the Commission after receiving a request from a potential lessee.

It is the intent of the Commission that options will only be issued for a period of not to exceed one year to allow potential land lessees a due diligence period to complete plans and specifications for significantly sized projects.

 8.       Approve Proposal for Parking Deck Solar Energy Study. As part of our energy conservation initiative, Staff has been exploring possible locations where solar power could be used efficiently and effectively. The one site that has been identified as a very good candidate for a solar panel installation is the parking deck. As you are aware, the parking decks were built with no rooftop parking. As a result, we have a very large membrane roof system above each deck. These spaces appear to be well suited for a solar panel array that may be capable of providing all power needed to operate our entire public parking operation. We were recently approached by Patrick Shay, representing Green Sweep Creative Energy Solutions, who provided us with a proposal to prepare a detailed technical evaluation with proposed solutions, a cost benefit analysis and funding options for a solar power application for this facility. We do not have the in-house expertise to conduct a technical study of this nature and we are at the point in our internal process where we need to move to the next level.  This proposal will provide the information we need to determine if, when and how to proceed. Staff recommends approval of this proposal for professional services in the amount of $8,500.

 9.       Approve Purchase of Landscape Truck. Bid #10.083. We have received the following bids for a new landscape truck for the use in the grounds operations.

O.C. Welch Ford                     Hardeeville, SC                                    $ 29,110.49

Bartow Ford                            Bartow, FL                               $ 29,989.00

J.C. Lewis Ford                        Savannah, GA                          $ 30,086.50

Allan Vigil Ford                      Morrow, GA                            $ 31,085.00

Peach County Ford                  Byron, GA                               $ 31,417.00

Summerville Ford                    Summerville, SC                      $ 32,123.00

Vaden Auto Group                  Savannah, GA                          $ 33,550.00

Hoover Chrysler Jeep Dodge   Savannah, GA                          $ 33,565.00

Bellamy Strickland Chevy         McDonough, GA                     $ 34,024.00

Four Rivers Peterbuilt             Port Wentworth, GA               $ 66,673.00

This truck is a life cycle replacement for Unit# 130. Unit 130 was purchased in 1994 and is at the beyond economical repair stage. This unit will be used primarily in the area of grounds operations. Recommend award to O.C. Welch in the amount of $29,110.49. 2010 Budget amount $50,000.

10.      Approve Contract with Sabre Airline Solutions. As many of you are aware, Southwest has announced their intent to service Charleston and Greenville/Spartanburg in 2011. Our first take on this was that it could severely hurt our traffic; however, after many hours of discussion, we believe the effect on our traffic will not be significant but it is still a threat to future growth. We have met with Brad DiFiore and Will Berchelmann of Sabre Airline Solutions to discuss the area of air service development. We believe it is time to have an outside, independent company take a look at our air service development program to ensure that we are taking the proper steps in soliciting new air service and to assist in developing plans for service by JetBlue. We are requesting permission to enter into a contract with Sabre Airline Solutions in an amount not to exceed $50,000, which will be billed on an actual time basis at a rate for each of the individuals involved as we have Sabre assist us.

11.      Execute New Airline Lease and Operating Agreement with Delta Air Lines. The five primary air carriers have each been provided with new Airline Lease and Operating Agreements that are based on a fixed rent rather than the previous calculations whereby signatory airlines held the power to control rental rate increases and airport improvements. Delta Air Lines has executed their agreement and is requesting Commission approval for a 5-year term. Rental rates for terminal space will be $48.50 per square foot for calendar year 2010 and will increase incrementally over the 5-year term period.

MISCELLANEOUS         

12.      Interior Design Services. As you may have noticed, we have removed the national flags of the "Olympic" countries which were hanging from the ceiling throughout the terminal building since 1996. These flags had become very faded and tattered over the years so the time had come to remove them. Instead of replacing them in-kind, we thought we would take this opportunity to look at an alternative interior decorative solution to fill the void. Additionally, we have had discussions with the rental car agencies about making improvements to their operations space at the counters in the bag claim area. These improvements would include replacing the 15 year old counters with newer modular and ergonomic counters which will provide a better working platform for the newer business applications related to customer interface. It is our intention to work with Lisa Pinyan of Greenline Architecture on these initiatives as an interior design consultant. Ms. Pinyan has been our interior design consultant over the years and has produced exceptional results throughout the terminal building. Ms Pinyan will prepare a number of conceptuals for these projects which we will present to the Board for review and comment. 

13.      Calendar of Approaching Events    July 7            ~ 9 AM SAC Meeting

August 4       ~ 9 AM SAC Meeting

September 1  ~ 9 AM SAC Meeting

 14.     Executive Session

 15.     Adjourn

SAVANNAH AIRPORT COMMISSION

May 6, 2010

 1.       Call to Order by Chairman Formey

 2.       Approve Minutes of Previous Meeting ~ April 7, 2010

 3.       Recognition of Visitors

 4.       Presentation of Employee Awards ~ Janice Loury - 5 years

  George Fidler - 10 years

 5.       Presentation of Certificate of Achievement for Excellence in Financial Reporting for the Year 2008

 6.       Announce 5-Year Reappointment of Shirley B. James

CONTRACTS AND AGREEMENTS

 7.       Approve Letter of Intent/Options Policy.

8.        Execute Easement Agreement with Georgia Power Company. Georgia Power has requested that the Commission issue a utility easement allowing them access to their distribution lines as needed. The easement is approximately 15’ wide and runs from the eastern lease lot line to the corner of the Wendy’s Restaurant for approximately 90’.

 9.        Execute Land Lease Agreement with Department of Energy. The Westinghouse Savannah River Company, as a former contractor for the Department of Energy (DOE), maintained a weather monitoring station in the Southeast Quadrant near Building #1010 for a number of years. This land has subsequently been removed as part of the Land Swap Agreement with the Georgia Air National Guard. The DOE is interested in resuming operations for the weather monitoring station. A new 625 sf site has been offered, inspected and selected at the corner of Bob Harman Road and Nicholson Drive. DOE will construct the necessary security fencing around the project and will be responsible for their own electrical usage by a separate meter. The land lease will commence April 1, 2010 for a term of five years with annual renewals thereafter. The rent for the land is Six Hundred ($600) Dollars per year.

10.      Execute Assignment and Assumption Agreement with Stanford Connections. Mr. Phil Jennings, President of Stanford Connections, Inc., has announced that he will be retiring and wishes to sell his business to his employees, who will be operating as Stanford Connections, LLC. The new managing partner, Ms. Janet Langford, has submitted our standard Assignment & Assumption agreement form, and she wishes to assume control of the business soon. Stanford Connections leases approximately 627 sf in Building #128 in the Southeast Quadrant and pays $365.75 per month rent. The agreement renews annually on July 1.

11.      Execute Amendment #4 to Land Lease Agreement with EKTA Associates, Inc. During the construction of the new Wendy’s Restaurant on the leased premises of Ekta Associates, Inc. dba Airport Shell, Georgia Power Company will be installing their transformer for electric service to the new building adjacent to the structure. Since the electrical distribution point is inside the leased line of the property, the Commission has requested that Ekta Associates, Inc., sign an amendment acknowledging the utility easement, which is approximately 15’ wide and runs from the eastern boundary line of the property to the building.

12.      Approve Purchase of Tractor from Fleet Equipment $29,597. Bid number 10.073. 2010 Budget $36,000. We have received the following bids for a new commercial grade tractor for the use on the airfield:

Fleet Equipment                 Pooler, GA              $29,597.00

Lashley Tractor Sales          Lithonia, GA                     $32,155.10

Blanchard Equipment Co.   Swainsboro, GA                $33,885.00

Hendrix Machinery, Inc.     Pooler, GA             $31,957.00

This tractor is a programmed life cycle replacement for Unit# 209, which was purchased in 2000. Unit # 209 now has 2,988 hours and is at the beyond economical repair stage. This unit will primarily be used for mowing operations on the airfield. Recommend award to Fleet Equipment in the amount of $ 29,597.

13.      Approve Installation of Thermoplastic Hold Signs, City of Savannah Bid # 10.74. Approve contract to apply thermoplastic hold signs at taxiway-to-runway intersections in accordance with an FAA directive due by December 31, 2010. Bids will be opened on Tuesday, May 4, and the name of the contractor/bid will be announced at the meeting.

14.      Approve Contract to Seal-Coat Parking Lot. Approve contract to seal-coat the parking lot used for staging valet parking vehicles and for TSA employee parking. This pavement is over 10 years old and is drying out and cracking. The major cracks will be sealed and an asphalt seal-coat applied to rejuvenate the pavement to last about five more years. This needs to be done quickly while parking lot assignments are being reallocated to accommodate the valet parking staging operation. The name of the contractor/bid will be announced at the meeting.

15.      ** will delete if no agreements are received ** Execute New Airline Lease and Operating Agreement with _______. The five primary air carriers have each been provided with new Airline Lease and Operating Agreements that are based on a fixed rent rather than the previous calculations whereby signatory airlines held the power to control rental rate increases and airport improvements. The new agreements, which were all sent out in early December and will all have an initial starting term date of January 1, 2010, are weighted toward a five-year term, but the primary airlines (Delta, Continental, American Eagle, United and US Air) can opt for an initial three-year term. _________  has executed their agreement and is requesting Commission approval for a five-year term. Rental rates for terminal space will be $48.50 psf for calendar year 2010 and will increase incrementally over the five-year term period.

MISCELLANEOUS         

16.      Fuel spill clean-up report.

17.      Calendar of Approaching Events    June 2                     ~ 9 AM SAC Meeting

July 7            ~ 9 AM SAC Meeting

August 4       ~ 9 AM SAC Meeting

 18.     Executive Session

1. Call to Order by Chairman Formey
2. Approve Minutes of Previous Meeting ~ March 10, 2010
3. Recognition of Visitors
4. Presentation of First in Service Award ~ Deldrick Norman
5. Presentation of Employee Awards ~ David Mack - 5 years
Paul Dunn - 5 years
Chief Wilkins - 30 years

CONTRACTS AND AGREEMENTS
6. Ratify Extension of Smarte Carte Agreement for 90-Days
7. Approve 6-Month Extension As Requested By Ben Farmer
8. Award Contract for Property Appraisals to Don Lindner, Coastal Realty Consultants
9. Execute Assignment and Assumption Agreement with Dollar Rent A Car
10. Approve Purchase of Server for CCTV Upgrade
11. Acceptance of AIP-50 Grant Offer - $2,138,853
12. Approve Additional Services Authorization #1 with URS Corporation Southern NTE $51,240 to Relocate Gulfstream Road, Construct Taxiway H, Extend Taxiway A, & Construct New Electrical Vault & Completion of a Phase I Environmental Assessment for the Project Development Area

MISCELLANEOUS
13. Calendar of Approaching Events
April 11–13 ~ ACI Board Members & Commissioners Conf

April 15-18 ~ Heritage Golf Tourn

April 22-25 ~ Legends Golf Tourn

May 5 ~ 9 AM SAC Meeting

June 2 ~ 9 AM SAC Meeting

July 7 ~ 9 AM SAC Meeting

14. Executive Session
15. Adjourn