board of trustees president/ceo · 2019-01-03 · board of trustees president/ceo lisa gianoli,...

BOARD OF TRUSTEES PRESIDENT/CEO Lisa Gianoli, Chair Marily M. Mora, A.A.E. Jessica Sferrazza, Vice Chair EXECUTIVE VICE-PRESIDENT/COO Richard Jay, Secretary Dean E. Schultz, A.A.E. Jenifer Rose, Treasurer GENERAL COUNSEL Nat Carasali Ann Morgan, Fennemore Craig Shaun Carey CLERK OF THE BOARD Carol Chaplin Laura Bayer Daniel Farahi Art Sperber

AGENDA

RENO-TAHOE AIRPORT AUTHORITY MEETING OF THE BOARD OF TRUSTEES

January 10, 2019 9:00 a.m.

Board Room, Administrative Offices, Second Floor, Main Terminal Building Reno-Tahoe International Airport, Reno, Nevada

Items 5, 6, 8 and 9 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. 1. PLEDGE OF ALLEGIANCE

2. ROLL CALL

3. PUBLIC COMMENT, if any – Limited to Three Minutes per Person

4. PRESENTATIONS AND AWARDS

a. Employee, Tenant and Special Recognition b. Introduction of Retired, New, and Promoted Employees c. Tenant Communication

5. APPROVAL OF MINUTES – December 13, 2018 Board Meeting 6. APPROVAL OF AGENDA 7. 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 Liaison g. Air Service Liaison h. The Chamber Reno Sparks Northern Nevada Liaison

Board Agenda January 10, 2019 Board Meeting of 2

i. Reno-Tahoe International Airport Users Committee j. Legislative Priorities Committee

8. CONSENT ITEMS FOR BOARD ACTION - None

9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION

a. #19(01)-01 Review of History of Reno Airport Names and Discussion of Naming Policy for Airport and Facilities with Possible Direction to Staff Regarding a Resolution

b. #19(01)-02 Authorization for the President/CEO to Execute a Professional Services Agreement for Federal Government Advocacy and Lobbying Services on Behalf of the Reno-Tahoe Airport Authority, for a Total of Three Years, with Porter Group, LLC, in the Amount of $277,000

c. #19(01)-03 Authorization for the President/CEO to Exercise the First Two-Year Extension

Option to the Professional Services Agreement for Auditing Services, with Crowe LLP, in the Amount of $109,500

10. ITEMS FOR BOARD INFORMATION AND DISCUSSION

a. Presentations i. Federal Legislative Update

b. Upcoming Meetings/RTAA Event Schedule

i. Board/Committee Meetings

1. January 24, 2019 4:30 pm RTIA Users Committee Special Meeting 2. February 12, 2019 9:00 am Finance & Business Development Committee Meeting 3. February 12, 2019 9:30 am Planning & Construction Committee Meeting 4. February 14, 2019 9:00 am Board of Trustees Meeting 5. March 11, 2019 4:30 pm RTIA Users Committee Meeting 6. March 12, 2019 9:00 am Finance & Business Development Committee Meeting 7. March 12, 2019 9:30 am Planning & Construction Committee Meeting 8. March 14, 2019 9:00 am Board of Trustees Meeting

ii. RTAA Events

1. February 6, 2019 5:00 pm Brownstein Hyatt Farber Schreck Legislative Reception 2. February 20, 2019 5:30 pm RTAA Legislative Reception

c. President/CEO’s Report

d. General Board Comments, Questions, and Items for Future Board/Committee

Meetings

11. PUBLIC COMMENT, if any – Limited to Three Minutes per Person

12. ADJOURNMENT

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

scheduled meeting. ***

RENO-TAHOE AIRPORT AUTHORITY MINUTES

MEETING OF THE BOARD OF TRUSTEES December 13, 2018

9:00 a.m.

MEMBERS PRESENT ALSO PRESENT Lisa Gianoli, Chair Marily M. Mora, A.A.E. Jessica Sferrazza, Vice Chair President/CEO Richard Jay, Secretary Dean Schultz, A.A.E. Jenifer Rose, Treasurer Executive Vice President/COO Nat Carasali Ann Morgan Shaun Carey General Counsel Carol Chaplin Laura Bayer Daniel Farahi Clerk of the Board Art Sperber MEMBERS ABSENT/EXCUSED None The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. Chairwoman Lisa Gianoli called the meeting to order at 9:01 a.m. The Pledge of Allegiance was recited and roll was called.

3. PUBLIC COMMENT, if any – Limited to Three Minutes Per Person

None.

4. PRESENTATIONS AND AWARDS a. Employee, Tenant and Special Recognitions

Marily Mora, President/CEO announced that Hasaan Azam, Manager of Air Service & Cargo Business Development, had recently been named one of the Young Professionals Network’s Twenty under Forty. He won this honor out of over 100 nominees. Mr. Azam thanked the Board, noting he was humbled and honored at the same time. Ms. Mora then congratulated Brian Kulpin, Vice President of Marketing and Public Affairs, and his department for winning two awards from Airports Council International-North America (ACI-NA). Mr. Kulpin thanked Ms. Mora and explained that there are only two levels of awards at this conference: First Place and Honorable Mention. The Reno Tahoe Airport Authority (RTAA) Marketing and Public Affairs Department took home First Place for Community Education and Outreach for an event named “Wings for All”, a tour for autistic and developmentally challenged youth, and Honorable Mention for the Radio Advertisement for Frontier’s Austin Non-Stop Flight. Mr. Kulpin thanked the Board for allowing staff this opportunity to compete in this nationwide competition.

b. Introduction of Retired, New and Promoted Employees

Meeting of the Board of Trustees December 13, 2018 Minutes Page 2 of 8

Ms. Mora announced that after 17 years of service to the RTAA, Frances Risk will be retiring effective December 31, 2018. During her tenure here, Frances has demonstrated a strong dedication to providing the highest-quality customer service. She was recognized in a 2006 Customer Service Survey, receiving the highest marks of all Parking Lot Attendants surveyed. In addition, in 2012, Frances was commended for her efforts to leave a positive impression on our customers, by initiating the practice of providing doggie treats to customers traveling with their dogs, even purchasing some of those treats with her own money. Dean Schultz, Executive Vice President/ COO announced three employees who were recently promoted, all effective December 10, 2018: Titus Roberson, from Property Specialist I to Airport Planner I: Susan Evans, from Airport Security Specialist to Airport Communications Specialist; and Josefa Ramirez-Torres, from Accounting Technician to Financial Analyst.

c. Tenant Communication

Ms. Mora introduced the new Port Director for the US Customs and Border Protection (CBP) agency, Mr. Robert Arroyo. Mr. Arroyo gave a brief history of how he came to work in Reno and noted he was looking forward to increasing the size of international travel here. He left a supply of business cards for anyone needing his contact information.

5. APPROVAL OF MINUTES a. Minutes of November 8, 2018: On motion by Trustee Sferrazza, seconded by Trustee Jay,

which motion duly carried by unanimous votes, the Board approved the minutes from the Board of Trustees meetings of November 8, 2018.

b. Minutes of November 26, 2018 Special Meeting: Trustee Sferrazza noted for the record that a correction was needed to the last paragraph on page three of four wherein she requested that the potential name change of the airport be considered on the next agenda. On motion by Trustee Jay, seconded by Trustee Sperber, which motion duly carried by unanimous votes, the Board approved the minutes from the Board of Trustees meetings of November 26, 2018. (Clerk’s Note: The minutes of November 26, 2018 were corrected to read: Trustee Sferrazza requested a full history of the Airport’s name changes be prepared by staff for the agenda item at the next Board Meeting to consider renaming the Airport in honor of Senator Paul Laxalt).

6. APPROVAL OF AGENDA

Chair Gianoli announced a change to the agenda order, Item 9e will be taken first, then Item 8, and then the remainder of Item 9, followed by the Liaison Reports. On motion by Trustee Sferrazza, seconded by Trustee Jay, which motion duly carried by unanimous votes, the Board approved the December 13, 2018 Board of Trustees meeting agenda as amended.

9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION

e. #18(12)-81 Authorization for President/CEO to Rescind the Cancelation of the Exclusive Master Development Agreement and the Phase I Ground Lease with DP RTA Stead, LLC at the Reno-Stead Airport in Reliance on the Formal Commitment by Dermody Properties, LLC to Fund DP RTA Stead, LLC’s Obligations Pursuant to Article 5 of the Master Development Agreement


Ann Morgan, General Counsel, explained that the Board voted to cancel the subject agreements at the Special Meeting on November 26, 2018, noting that the developer, DP RTA Stead LLC, had not provided proof of funding as required in Article 5 of the Master Development Agreement. On Monday, December 3rd the CFO for Dermody Properties, LLC, which is a separate legal entity from DP RTA Stead LLC, provided the RTAA with a commitment letter from Dermody Properties, LLC to fund the construction of the infrastructure improvements in accordance with Article 5 of the Master Development Agreement (a copy of the letter is attached to the Board Memo). Ms. Morgan introduced Brad Mamer, representing Dermody properties, who offered to field any questions. In response to an inquiry from Trustee Rose, Mr. Mamer confirmed what Ms. Morgan had stated in regard to Dermody Properties, LLC’s commitment to fund the infrastructure improvements. Ms. Morgan indicated that the staff recommendation is that the Board rescind the cancelation. Trustee Sferrazza pointed out that three of the Board members did not vote for cancelation; therefore, she does not feel she needs to reconsider her vote. Ms. Morgan replied that this is not reconsideration, but a whole new motion. Trustee Rose suggested that should this motion pass, it might be time to start a Working Group, including Board Members, as suggested in a previous Dermody letter. On motion by Trustee Rose, seconded by Trustee Sperber, which motion was duly carried by unanimous votes, the Board approved Agenda Item #18(12)-81 as follows: Authorized the President/CEO to Rescind the Cancelation of the Exclusive Master Development Agreement and the Phase I Ground Lease with DP RTA Stead, LLC at the Reno-Stead Airport in Reliance on the Formal Commitment by Dermody Properties, LLC to Fund DP RTA Stead, LLC’s Obligations Pursuant to Article 5 of the Master Development Agreement.

8. CONSENT ITEMS FOR BOARD ACTION

a. #18(12)-75 Authorization for the President/CEO to Award a Contract for the Upgrade and

Installation of Direct Digital Network Controls and Equipment for the Reno-Tahoe Airport Authority HVAC Building Management System, with Automated Temperature Controls, Inc., in the Amount of $174,085, Exempt from Competitive Bidding Pursuant to Nevada Revised Statute 332.115 (A), (C), (G) On motion by Trustee Sperber, seconded by Trustee Rose, which motion was duly carried by unanimous votes, the Board approved Agenda Item #18(12)-75 as follows: Authorized the President/CEO to Award a Contract for the Upgrade and Installation of Direct Digital Network Controls and Equipment for the Reno-Tahoe Airport Authority HVAC Building Management System, with Automated Temperature Controls, Inc., in the Amount of $174,085, Exempt from Competitive Bidding Pursuant to Nevada Revised Statute 332.115 (A), (C), (G).

b. #18(12)-76 Authorization for the President/CEO to Execute a Professional Services

Agreement for Design Services for the Airfield Maintenance Yard Pavement Reconstruction Project at Reno-Tahoe International Airport, with Stantec, in the Amount of $65,828


On motion by Trustee Sperber, seconded by Trustee Rose, which motion was duly carried by unanimous votes, the Board approved Agenda Item #18(12)-76 as follows: Authorized the President/CEO to Execute a Professional Services Agreement for Design Services for the Airfield Maintenance Yard Pavement Reconstruction Project at Reno-Tahoe International Airport, with Stantec, in the Amount of $65,828.

9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION (Continued)

a. #18(12)-77 Acceptance of the Comprehensive Annual Financial Report for Fiscal Year 2017-

2018 Randy Carlton, CFO, introduced himself and gave a presentation on the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2017-2018. He reviewed the financial results, noting that the important thing is that the RTAA inflows are exceeding the outflows. Chair Gianoli commented that it is nice to see a strong financial position going into the Master Plan. Trustee Sferrazza congratulated the Airport staff for having no management corrections on the CAFR. On motion by Trustee Jay, seconded by Trustee Farahi, which motion was duly carried by unanimous votes, the Board approved Agenda Item #18(12)-77 as follows: Accept the Comprehensive Annual Financial Report for Fiscal Year 2017-2018.

b. #18(12)-78 Authorization to Submit a Second Amendment to Passenger Facility Charge (PFC) Application 15-12-C-01-RNO in the Amount of $874,250, a First Amendment to PFC Application 17-13-C-00-RNO in the Amount of $1,070,025, and Submit a New PFC Application 18-14-C-00-RNO in the Amount of $12,606,998 to Construct/Acquire Various Capital Assets for the Reno-Tahoe International Airport Trustee Rose indicated that the Finance and Business Development Committee had received a full report at their meeting; therefore, there was no need for staff to present the information again. On motion by Trustee Farahi, seconded by Trustee Rose, which motion was duly carried by unanimous votes, the Board approved Agenda Item #18(12)-78 as follows: Authorized the President/CEO to Submit a Second Amendment to Passenger Facility Charge (PFC) Application 15-12-C-01-RNO in the Amount of $874,250, a First Amendment to PFC Application 17-13-C-00-RNO in the Amount of $1,070,025, and Submit a New PFC Application 18-14-C-00-RNO in the Amount of $12,606,998 to Construct/Acquire Various Capital Assets for the Reno-Tahoe International Airport

c. #18(12)-79 Authorization for the Chair of the Board of Trustees to exercise the Five Year

Contract Extension option to the Professional Services Agreement with Fennemore Craig for the provision of legal services for the Reno-Tahoe Airport Authority (RTAA)


Ms. Mora gave a presentation on this item, outlining Ms. Morgan’s responsibilities and noting that one of the things the RTAA values about Ms. Morgan is her participation in the ACI-NA Legal Committee. Ms. Morgan currently serves as the Chair of that Committee, and thereby is able to network with her peers at airports across the country and is able to relay information regarding important issues to the RTAA. She also deals directly with the senior legal team from the Federal Aviation Administration (FAA). Ms. Morgan will be bringing the ACI-NA Legal Committee to the Reno area in May 2019. In response to an inquiry from Trustee Rose, Ms. Morgan indicated that the contract was initially issued to Jones Vargas, who subsequently went out of business and at that time, Ms. Morgan transferred to Fennemore Craig, bringing the RTAA contract with her. Ms. Mora indicated it had been RTAA’s practice to issue a 5-year contract with a 5-year extension. In response to a request from Trustee Rose, Ms. Mora distributed copies of the Fennemore Craig contract. Trustee Sferrazza commented that she is not in favor of 10-year contracts without going out to bid. She noted that she had also made this same comment regarding the recent lobbying contract. Trustee Sferrazza observed that it was irresponsible of staff not to include the original contract in the Board packet. Trustee Sferrazza posed the question of whether the General Counsel should be an employee of the RTAA rather than a professional services contract. Ms. Mora replied that in-house counsel is not as effective as a firm, such as Fennemore Craig, who can provide more resources because they have expertise in other areas which is more beneficial overall. On motion by Trustee Carasali, seconded by Trustee Chaplin, which motion was duly carried by six votes in favor and three against, the Board approved Agenda Item #18(12)-79 as follows: Authorized the Chair of the Board of Trustees to exercise the Five-Year Contract Extension option to the Professional Services Agreement with Fennemore Craig for the provision of legal services for the Reno-Tahoe Airport Authority (RTAA). Trustee Farahi requested staff get into the process of providing more information to the Board for their review and due diligence prior to the Board Meeting. He also asked to see the original five-year contract with the options; Ms. Mora indicated she would provide that via email after the meeting.

d. #18(12)-80 Review and Discussion of President/CEO Marily Mora’s Performance for Fiscal

Year 2017-2018 and Possible Action on Discretionary Bonus and Salary Adjustment for Fiscal Year 2017-2018 Ms. Morgan reviewed the recommendations of the Compensation Committee regarding the President/CEO’s performance for FY17-18. The Board is required to set annual goals and to base any bonus on the accomplishment of those goals. The maximum amount that can be awarded is 20% of Ms. Mora’s base salary, if she meets all of the Board’s goals. A copy of the Board goals is attached to the Board Memo. The Compensation Committee met on November 20th to review her performance against her goals and based on that review, the Committee found that Ms. Mora met 72.5% of the goals. The maximum allowable bonus of 20% of her base salary equates to $52, 972; 72.5% of that allowable bonus equates to $38,405.


On motion by Trustee Carasali, seconded by Trustee Jay, which motion was duly carried by unanimous votes, the Board approved the Discretionary Bonus portion of Agenda Item #18(12)-80 as follows: Approved a Discretionary Bonus for President/CEO Marily Mora in the Amount of $38,405. Ms. Morgan explained that Ms. Mora’s contract provides that she is eligible for an annual increase to her salary at the Board’s discretion. The Compensation Committee recommended a 5% increase in Ms. Mora’s salary after reviewing the survey done by the independent industry agency. A 5% merit increase would result in an increase of $13,243. Trustee Sferrazza requested the calculations of the total President/CEO package including salary, benefits, and PERS. Ms. Mora replied that Human Resources produces a total compensation package for all employees and she will send it to the Board. On motion by Trustee Carasali, seconded by Trustee Chaplin, which motion was duly carried by unanimous votes, the Board approved the Salary Adjustment portion of Agenda Item #18(12)-80 as follows: Approved a 5% Salary Increase for Fiscal Year 2017-2018 for President/CEO Marily Mora in the Amount of $13,243. Trustee Carasali commented that you get what you pay for and the RTAA is getting an outstanding deal. Ms. Mora thanked Trustee Carasali and acknowledged every employee in the organization for their contributions.

9. COMMITTEE / LIAISON REPORTS

Committee / Liaison reports were given by:

b. Finance and Business Development Committee – Trustee Rose c. Planning and Construction Committee – Trustee Sperber d. Airport Noise Advisory Panel (ANAP) – Trustee Jay e. Community Outreach Committee (COC) – Trustee Sferrazza f. Stead Liaison – Trustee Carey g. RSCVA Board Liaison – Trustee Carasali h. Air Service Liaison – Trustee Carasali i. The Chamber Reno Sparks Northern NV – CEO Marily Mora j. Reno-Tahoe International Airport Users Committee – Trustee Jay advised he would like to

invite all Trustees to attend the Special Airport Users Committee meeting in January and would seek counsel’s advice on the matter.

k. Legislative Priorities Committee – Chair Gianoli 10. ITEMS FOR BOARD INFORMATION AND DISCUSSION

a. Presentations

None.

b. Upcoming Board Meetings/RTAA Event Schedule - Trustee Rose noted that the January 17, 2019 Community Outreach Committee meeting is missing from the list below.


i. Board/Committee Meetings January 8, 2019 9:00 am Finance & Business Development Committee Meeting January 8, 2019 9:30 am Planning & Construction Committee Meeting January 10, 2019 9:00 am Board of Trustees Meeting February 12, 2019 9:00 am Finance & Business Development Committee Meeting February 12, 2019 9:30 am Planning & Construction Committee Meeting February 14, 2019 9:00 am Board of Trustees Meeting

ii. RTAA Events

1. December 15, 2018 6:00 pm RTAA Holiday Party 2. February 6, 2019 5:00 pm Brownstein, Hyatt, Farber, Scheck Legislative Reception 3. February 20, 2019 5:30 pm RTAA Legislative Reception

c. President/CEO’s Report

Ms. Mora referred the Trustees to the written President/CEO Report in their Board binders and highlighted that the RTAA is providing a link on its website for the public to comment on NDOT’s plans to remove the Airport access roads to and from I-580. She noted that public comment on this issue closes on January 15th. Ms. Mora thanked the Board for their support on this topic. Ms. Mora gave a brief recap of the Operation Santa Claus event which took place on the prior Saturday. The event was a huge success. This is the fourth year and all users of the Airport have become involved by either adopting families and/or participating in the event. Twenty-five families were adopted this year. Mr. Kulpin introduced a video provided by KTVN – Channel 2 News which featured interviews with Operation Santa Claus participants and recipients.

d. General Board Comments, Questions, and Items for Future Board Meetings Chair Gianoli stated that she appreciated the comments made throughout this meeting and staff’s commitment to providing more information in the Board packet. She did note that 90% or more of the comments regarding NDOT’s plans were in favor of keeping the flyover. Chair Gianoli wished everyone Happy Holidays and asked if the Trustees had any comments, questions, or items for future Board meetings. Trustee Rose commended Mr. Kulpin for doing such an amazing job at Operation Santa Claus; she had attended the event and witnessed the overwhelming generosity and love. Trustee Carey requested a Resolution be part of the next agenda to focus towards the FHWA’s consideration of the ramps and the freeway project specifically NDOT has indicated the decision to make a change would be with the FHWA. The Resolution could show the RTAA’s full support to that agency. Ms. Mora indicated staff is in the process of scheduling a meeting with the FHWA; hopefully next week. Trustee Rose commented that she was shocked to see the rise in LYFT and UBER usage. She appreciated that information. Trustee Farahi noted that California Pacific’s utilization is lower than anticipated and asked if we were at risk. Ms. Mora replied that staff feels at risk when we see low numbers, but no concern has been expressed by California Pacific. Trustee Sferrazza stated for the record that staff has done everything on our end to try to make this successful; it is California Pacific’s


responsibility to increase their numbers. Ms. Mora indicated that Air Service Staff has talked to California Pacific regarding the need for their pricing to be more competitive. Trustee Rose reminded staff to put the Dermody Working Group on the next agenda. Ms. Mora replied that we have had a CEO Land Development Working Group in the past, which is something staff could put back into action. Trustee Carasali wished everyone “Bon Natale” – Merry Christmas and Happy New Year.

There were no further comments, questions, or future Board items raised by the Trustees.

11. PUBLIC COMMENT, if any – Limited to Three Minutes per Person None.

12. ADJOURNMENT There being no further business, the meeting was adjourned at 10:31am.

___________________________________ Chair Lisa Gianoli ATTEST: ___________________________________ Secretary Richard Jay

*** 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: January 2, 2019 Memo: # 19(01)-01 To: Chairwoman & Board Members Fgr: January 10, 2019 Board Meeting From: Marily M. Mora, A.A.E., President/CEO n'le-vvt Subject: REVIEW OF HISTORY OF RENO AIRPORT NAMES AND DISCUSSION OF

NAMING POLICY FOR AIRPORT AND FACILITIES WITH POSSIBLE DIRECTION TO STAFF REGARDING A RESOLUTION

STAFF RECOMMENDATION Staff requests Board input on the current name of Reno-Tahoe International Airport and future policy recommendations concerning the naming of airport facilities.

PURPOSE This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority #6 Customer Experience as adopted in the RTAA Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan.

BACKGROUND At the Clark County Commission Meeting on November 20, 2018, Commissioner Steve Sisolak, Governor-Elect, announced that he would like McCarran International named after Senator Harry Reid and Reno-Tahoe International Airport named after Senator Paul Laxalt.

DISCUSSION For future reference, it would be beneficial to create a naming policy and process for the RTAA airports and facilities.

As long as the designator for Reno-Tahoe International Airport remains the same as RNO, the Federal Aviation Administration leaves the name of the airport up to the governing body of the Airport.

Here are some highlights of the history of the name of Reno-Tahoe International Airport:

• Reno-Tahoe International was named Reno Municipal Airport in 1960 and renamed as Reno International on July 23, 1972.

• In 1977, the Airport Authority of Washoe County (AAWC) was created by state legislature to own and operate Reno International Airport. In 1979, the airport name was changed from Reno International Airport to Cannon International Airport in honor of Senator Howard W. Cannon. In 1981, the name was changed to Reno Cannon International Airport.

• In 1994, the Airport was named Reno-Tahoe International Airport and the terminal was named the Howard Cannon Terminal. The Board at that time also reconfirmed that the identifier for the airport would remain RNO. It was estimated that the name change on branded items and signage, as well as Senator's Cannon's recognition, would be $75,000.

Senator Paul Laxalt Honorary Measure #19(01)-01 January 10, 2019 Board Meeting Page 2 of 2

Among comments made in 1994 were those by a RSCVA representative who noted the new name of the airport would mean "we can effectively regionalize the sales and marketing of the area."

• In 2005, the Airport Authority of Washoe County (AAWC) was renamed the Reno-Tahoe Airport Authority (RTAA) as a result of SB 110.

When the Authority's name was changed, it was noted that the old name was recognizable in Nevada, but had little meaning in "today's global marketplace." There was a 12-month implementation effort to change from AAWC to the RTAA identification for everything from business cards, website, letterhead, uniforms, vehicle markings, phone system, and safety and emergency manuals.

• In other actions, Concourse B was named the Lear Concourse through Resolution #415 adopted by the Board on May 17, 2001. The recognition was in honor of the contributions of William and Moya Lear. Costs were minimal with the Airport budget absorbing the cost of the signage for Concourse B.

FISCAL IMPACT None at this time.

COMMITTEE COORDINATION This item is scheduled to be presented to the full Board at the January 10, 2019 meeting.

RECOMMENDATION It is hereby recommended that the Board provide direction to staff regarding a potential naming policy Resolution for the RTAA airports and its facilities.

MMM/lb


Date: January 2, 2019 Memo: # 19(01)-02 To: Chairwoman and Board Members - For: January 10, 2019 Board Meeting From: Marily M. Mora, A.A.E., President/CEO NVAA,I (4-1 Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO EXECUTE A

PROFESSIONAL SERVICES AGREEMENT FOR FEDERAL GOVERNMENT ADVOCACY AND LOBBYING SERVICES ON BEHALF OF THE RENO-TAHOE AIRPORT AUTHORITY, FOR A TOTAL OF THREE YEARS, WITH PORTER GROUP, LLC, IN THE AMOUNT OF $277,000

STAFF RECOMMENDATION It is recommended that the Board authorize the President/CEO to complete fmal negotiations and execute a Professional Services Agreement (PSA) for federal government advocacy and lobbying services on behalf of the Reno-Tahoe Airport Authority (RTAA) for a total of three (3) years, with Porter Group, LLC, in the amount of $277,000.

PURPOSE The purpose of this action is to retain a firm to provide government advocacy and lobbying services for the RTAA, and authorize the President/CEO to execute the Professional Services Agreement (P SA).

Due to the extensive and diverse overall impact of these services to the RTAA, this action is in support of all eight of the RTAA Strategic Priorities: Strategic Priority # 1 —Air Service and Cargo; Strategic Priority # 2 —General Aviation; Strategic Priority # 3 — Facilities for the Future; Strategic Priority # 4 —Safety and Security; Strategic Priority # 5 — Financial Diversification & Growth; Strategic Priority # 6 — Customer Experience; Strategic Priority # 7 — People; and Strategic Priority # 8 — Sustainability, as adopted in the Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan.

BACKGROUND The President/CEO directed staff to conduct a formal Request for Qualifications (RF'Q) process to solicit interested candidates or firms to represent the RTAA's legislative and advocacy interests at the federal government level.

The RFQ was issued on October 18, 2018. The solicitation was also advertised on October 18, 2018 in the Reno Gazette-Journal. To supplement legal advertising, staff posted the notification on the RTAA's website, and the Nevada Government eMarketplace (NGEM) system. Additionally, staff emailed a solicitation notice to multiple federal lobbyist candidates.

As a result, five proposals were received and opened on November 19, 2018. One submittal was deemed non-responsive due to lack of acknowledgement of a posted addendum. The President/CEO convened an Evaluation Committee consisting of three Trustees: Chairwoman Gianoli and Trustees Carey and Sperber, all members of the Board Legislative Priorities Committee, and two staff members to evaluate the remaining four proposals.

PSA with Porter Group LLC # 19(01)-02 January 10, 2019 Board Meeting Page 2 of 4

On November 29, 2018, the Evaluation Committee held a meeting to review the submissions from the four qualified finalists: Chambers, Conlon & Hartwell, Porter Group LLC, Rosemont Strategies and Strategies 360. At the conclusion of the meeting, the Evaluation Committee unanimously voted to select Porter Group, LLC, as the finalist film for recommendation to the full Board for their consideration and approval due to the outstanding quality of the submitted proposal which clearly identified and addressed specific RTAA needs. Furthermore, the film's depth of experience and appropriate staffing levels surpassed the alternatives. Additionally, the superiority of the attention and support provided under the current contract was perceived as exceptionally favorable by the Evaluation Committee. Additionally, the President/CEO directed staff to negotiate terms and conditions of the agreement with Porter Group, LLC that would be included in the Professional Services Agreement.

DISCUSSION With the approval of this item, Porter Group, LLC, would closely monitor the activities and proposals of the Federal Aviation Administration and Department of Homeland Security, and take appropriate action as directed by the RTAA. Additionally, as a core responsibility, the firm is also expected to identify potential legislative issues, effectively and consistently communicate the status of bills, and understand and represent the positions of the RTAA. Porter Group, LLC will provide strategic counsel for the resolution of issues and identify impacts that proposed resolutions may have on the operation and funding of the RTAA. Porter Group, LLC, will work with the RTAA in coordination of a federal legislative and regulatory program, which includes the development of legislative and regulatory positions and platfouns, as well as drafting proposed legislation when appropriate. Additionally, Porter Group, LLC will present the RTAA's appropriations requests and legislative objectives during Congressional action on spending and authorization legislation. Advance planning with the RTAA and maintaining strong relationships with elected and government officials will assist Porter Group, LLC, in achieving these goals. Lastly, Porter Group, LLC, will be expected to maintain an awareness of any local emerging issues and work closely with the RTAA to mitigate potential conflicts.

Staff has conferred with representatives of Porter Group, LLC, to discuss the above mentioned expectations and scope, and to negotiate the terms and conditions in accordance with the direction of the President/CEO. Porter Group, LLC, is in agreement with the service expectations. The RTAA's policy objectives will be established annually. Furtheimore, Porter Group, LLC, will provide both verbal and written reports regularly to the President/CEO and the Board.

In addition to the scope of work discussed above, the following tern's have been negotiated:

• Primary Contacts Porter Group, LLC, representatives include Jon Porter, President/CEO, Robert Herbert, Senior Vice President, and Dan Mauer, Vice President. Other members of the Porter Group will be called upon as needed.

The President/CEO, or her designee, will be primary contact for the RTAA.

PERIOD MONTHLY FEE February 1, 2019— June 30, 2019 July 1, 2019 — June 30, 2020

$7,000/month + expenses $7,500/month + expenses

July 1, 2020— January 31, 2022 $8,000/month + expenses Total for Three (3) Years $277,000


• Term The term of the Professional Services Agreement (PSA) for federal government advocacy and lobbying services, will be an initial three (3) years with a termination clause — with or without cause. The Agreement commencement date would be February 1, 2019, and would terminate on January 31, 2022. One (1) consecutive additional two (2) year term may extend this agreement at the sole discretion of the RTAA. If extended, each consecutive term and compensation will be separately approved by both Parties in writing, approved by the Board, and incorporated as an additional exhibit into the PSA.

• Fees In consideration of the services provided by Porter Group, LLC, the RTAA would provide a monthly retainer for the duration of the PSA as designated in the following table for a total of $277,000 over the course of three (3) years.

The RTAA has contracted with the Porter Group, LLC since February 1, 2011. The current agreement with the Porter Group, LLC (Amendment 2) runs from Febuary 1, 2016 to January 31, 2019. The monthly retainer has been set for $7,000 a month since the initiation of the contract in 2011.

COMPANY BACKGROUND Porter Group, LLC is a full-service, bipartisan strategic consulting and advocacy firm with offices in Washington, D.C. and Las Vegas, Nevada with an additional Carson City office planned in the near future. The firm, formed in 2011, has ten employees operating across multiple locations. Porter Group, LLC has an excellent network in the world of politics, federal agencies, public policy, and business. They leverage these key relationships in tackling complex issues and finding innovative and forward-thinking solutions for their clients. The firm's expertise is pertaining to legislative and regulatory solutions, public policy, government and legislative advocacy lobbying, bi-partisan coalition building, and business development and communications management services.

FISCAL IMPACT The fiscal impact of the proposed PSA will be in the amount of $277,000 over the course of the three (3) years of the contract, with the first partial year's expenditures totaling $35,000, or $7,000 per month. The current budgeted amount for FY 2018-2019 is set at $84,000, or $7,000 per month.

COMMITTEE COORDINATION This item was presented to the Finance and Business Development Committee for recommendation and is for full Board consideration.


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 complete final negotiations and execute a Professional Services Agreement for federal government advocacy and lobbying services on behalf of the Reno-Tahoe Airport Authority for a total of three (3) years, with Porter Group, LLC, in the amount of $277,000."

MMM/hdl/lb

Attachment: Draft Contract

Reno-Tahoe Airport Authority Reno-Tahoe International Airport Reno-Stead Airport

RFQ for Qualified Consulting Firms #18/19-04 Federal Lobbyist Services Attachment B Page 1 of 14

Professional Service Agreement This Agreement, entered into as of this ____ day of _______________, 2019, by and between: RENO-TAHOE AIRPORT AUTHORITY hereinafter referred to P. O. Box 12490 as the RTAA Reno, Nevada 89510 AND PORTER GROUP, LLC hereinafter referred to 428 New Jersey Avenue SE as the CONSULTANT Washington, D.C. 20003 AND TOGETHER called PARTIES, for the purpose of providing the following professional services: FEDERAL LOBBYIST SERVICES hereinafter referred to as the PROJECT DO HEREBY, mutually agree as follows: ARTICLE 1 – CONSULTANT’S SERVICES AND RESPONSIBILITIES 1.1 Engagement of the Consultant. The RTAA hereby agrees to engage the Consultant who

in turn agrees to perform the technical and professional services necessary to produce the Project. Furthermore, it is expressly understood that the RTAA has the right to approve the terms and conditions of this Agreement as well as the proposed scope and costs of the technical and professional services to be conducted as part of the Project.

1.2 Scope of Services. The Consultant shall do, perform and carry out in a satisfactory

manner, as determined by the RTAA, the services outlined in Exhibit A - Scope of Task Services and specifically indicated in each task order to be issued and incorporated by reference hereto.

1.3 Notice to Proceed. The RTAA Purchasing and Materials Management Division shall

cause issue a written Notice to Proceed upon satisfactory evidence that all licensing, bonding, and insurance requirements have been met. Any work performed by Consultant prior to the issuance of the Notice to Proceed shall be at Consultant’s own risk. The RTAA shall not be liable for claims of services performed until the official Notice to Proceed has been issued.

1.4 Time of Performance. Total time of performance for this Agreement shall be from

February 1, 2019 through January 31, 2022 for a total of three (3) years. Further, at the sole discretion of the RTAA, an additional one (1) consecutive, two (2) year term may extend



this Agreement. If extended, the term and compensation will be separately approved by both Parties in writing, and incorporated as an additional exhibit into this Agreement.

1.5 Responsibility of the Consultant. RTAA has contracted with the Consultant for the

Project and RTAA has relied upon Consultant’s knowledge and skills in completing the Scope of Task Services. Consultant shall be responsible for the professional quality, technical accuracy, and the coordination of all services provided by the Consultant under this Agreement. All services shall be performed in a workmanlike manner using the degree of skill, efficiency and knowledge that is possessed by those of ordinary skill, competency, and standing in the particular trade for which the Consultant is employed. Without limiting Consultant’s liability, Consultant shall, without additional compensation, correct or revise any errors or omissions in in any documents prepared in association with this Project. Consultant and its sub-consultants shall perform all services and duties required hereunder in conformance to and consistent with standards generally recognized as being employed by others performing this type of work and services. Acceptance of Consultant’s services and equipment by the RTAA shall not operate as a waiver of the rights granted the RTAA herein.

1.6 Responsibility of the RTAA. The RTAA shall cooperate with the Consultant by making a diligent effort to provide items reasonably necessary for the Consultant to be able to provide its services, including all previous studies, plans, drawings; legal, accounting, and insurance information required for various projects; necessary permits and approval of governmental authorities or other individuals; issuance of public notices, and providing locations and minutes for all meetings.

1.7 Additional Services. For purposes of this Agreement, additional services means services

not identified in Exhibit A - Scope of Task Services, but that relate to the services being performed in connection with the Project. The Consultant shall perform additional services only upon the written request of RTAA. The fee for any additional services required by the RTAA will be based upon actual hours and expenses incurred by the Consultant.

1.8 Licenses. The Consultant and all sub-consultants shall be required to obtain appropriate City, County, and State Business licenses, as well as ensure registration as a provider of lobbying services with the Office of the Clerk U.S. House of Representatives and/or the U.S. Senate prior to performance of the work. Business License(s) Number, Effective Dates, and Jurisdiction: _________________________________________________________________________________________________________________________________________________________________________________________________________

ARTICLE 2 - COMPENSATION AND METHOD OF PAYMENT 2.1 Compensation. It is expressly understood and agreed that the total compensation to be

paid to the Consultant for services under this Agreement shall not the exceed amount of two hundred seventy-seven-one thousand dollars ($277,000) in the monthly increments shown in the table below. Also, business expenses such as long distance phone charges, special deliveries, business meals, taxis and travel expenses will be reimbursable. All travel expenses will be submitted with receipts. Any expense greater than five hundred dollars ($500) will require advance approval.



Period Monthly Expense Amount

February 1, 2019 – June 30, 2019 $7,000 / month + expenses July 1, 2019 – June 30, 2020 $7,500 / month + expenses July 1, 2020 – January 31, 2022 $8,000 / month + expenses

2.2 Method of Payment. The RTAA shall pay to the Consultant no more than the amount set

out in Article 2.1 above. Payments shall be at monthly intervals subject to receipt of invoices from the Consultant specifying that it has performed the work and is entitled to the amount requisitioned under the terms of this Agreement.

2.3 Consultant Responsibilities for Compensation. The Consultant shall prepare monthly

invoices and progress reports that clearly indicate the progress to date and the amount of compensation due by virtue of that progress. All invoices shall be for work completed unless otherwise agreed to by the RTAA in writing.

2.4 RTAA Responsibilities for Compensation. The RTAA agrees to pay the Consultant's

invoices net thirty (30) days from the date of receipt of the invoice from the Consultant. It is expressly understood that the RTAA has the right to withhold payment on any invoice if it feels that the Consultant has not performed the requisitioned work efforts in a satisfactory manner. If the RTAA does decide to withhold payments to the Consultant for any reason, it must provide written notifications and an explanation to the Consultant within ten (10) days of the date of the invoice.

2.5 Prompt Payment. The Consultant agrees to pay each sub-consultant under this

Agreement, if any, for satisfactory performance of its agreement no later than fifteen (15) days from the receipt of each payment the Consultant receives from the RTAA. The Consultant agrees further to return retainage payments to each sub-consultant within fifteen (15) days after the sub-consultant’s work is satisfactorily completed. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of the RTAA.

ARTICLE 3 - CHANGES TO THE SCOPE OF SERVICES The RTAA may, at any time, and by written amendment, make changes in the services to be performed under this Agreement. If such changes cause an increase or decrease in the Consultant's cost or time required for performance of any services under this Agreement, an equitable adjustment shall be made and the Agreement shall be modified in writing accordingly. Any claim of the Consultant for adjustment under this clause must be submitted in writing within thirty (30) days from the date or receipt by the Consultant of the notification of change. All changes to the Scope of Services shall be submitted on “Amendment to Professional Services Agreement” form as provided by RTAA and signed by both parties. No services for which an additional cost or fee will be charged by the Consultant or shall be furnished without the prior written authorization of the RTAA. ARTICLE 4 – SUSPENSION OF WORK The RTAA may order the Consultant, in writing, to suspend all or any part of the work for such period of time as the RTAA may determine to be appropriate for the convenience of the RTAA.



If the performance of all or any part of the work is, for any unreasonable period of time, suspended or delayed by an act of the RTAA in the administration of this Agreement, or by its failure to act within the time specified in the Agreement (or if no time is specified, within a reasonable time), an adjustment shall be made for any increase in cost of performance of this Agreement necessarily caused by such unreasonable suspension or delay, and the Agreement modified in writing accordingly. However, no adjustment shall be made under this clause for any suspension or delay to the extent: (1) that performance would have been suspended or delayed by any other cause, including the fault or negligence of the Consultant; or, (2) for which an equitable adjustment is provided for or excluded under any other provision of this Agreement. ARTICLE 5 – TERMINATION OF THE AGREEMENT 5.1 Termination of the Agreement for Convenience. The RTAA may, by written notice to

the Consultant, terminate this Agreement for its convenience and without cause or default on the part of Consultant. Upon receipt of the notice of termination, except as explicitly directed by the RTAA, the Consultant must immediately discontinue all services affected. Upon termination of the Agreement, the Consultant must deliver to the RTAA all data, surveys, models, drawings, specifications, reports, maps, photographs, estimates, summaries, and other documents and materials prepared by the Consultant under this contract, whether complete or partially complete. The RTAA agrees to make just and equitable compensation to the Consultant for satisfactory work completed up through the date the Consultant receives the termination notice. Compensation will not include anticipated profit on non-performed services. The RTAA further agrees to hold Consultant harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause.

5.2 Termination of the Agreement for Default. Either party may terminate this Agreement for cause if the other party fails to fulfill its obligations that are essential to the completion of the Project per the terms and conditions of the Agreement. The party initiating the termination action must allow the breaching party an opportunity to dispute or cure the breach.

The terminating party must provide the breaching party seven (7) days advance written notice of its intent to terminate the Agreement. The notice must specify the nature and extent of the breach, the conditions necessary to cure the breach, and the effective date of the termination action. The rights and remedies in this clause are in addition to any other rights and remedies provided by law or under this agreement.

(a) Termination by the RTAA: The RTAA may terminate this Agreement in whole or in part, for the failure of the Consultant to: 1. Perform the services within the time specified in this contract or by RTAA

approved extension; 2. Make adequate progress so as to endanger satisfactory performance of the

Project; or 3. Fulfill the obligations of the Agreement that are essential to the completion of

the Project.

Upon receipt of the notice of termination, the Consultant must immediately discontinue all services affected unless the notice directs otherwise. Upon termination of the



Agreement, the Consultant must deliver to the RTAA all data, surveys, models, drawings, specifications, reports, maps, photographs, estimates, summaries, and other documents and materials prepared by the Consultant under this contract, whether complete or partially complete. The RTAA agrees to make just and equitable compensation to the Consultant for satisfactory work completed up through the date the Consultant receives the termination notice. Compensation will not include anticipated profit on non-performed services. The RTAA further agrees to hold Consultant harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause. If, after finalization of the termination action, the RTAA determines the Consultant was not in default of the Agreement, the rights and obligations of the parties shall be the same as if the RTAA issued the termination for the convenience of the RTAA. (b) Termination by Consultant: The Consultant may terminate this Agreement in whole

or in part, if the RTAA: 1. Defaults on its obligations under this Agreement; 2. Fails to make payment to the Consultant in accordance with the terms of this

Agreement; 3. Suspends the Project for more than [180] days due to reasons beyond the

control of the Consultant.

Upon receipt of a notice of termination from the Consultant, the RTAA agrees to cooperate with Consultant for the purpose of terminating the agreement or portion thereof, by mutual consent. If the RTAA and Consultant cannot reach mutual agreement on the termination settlement, the Consultant may, without prejudice to any rights and remedies it may have, proceed with terminating all or parts of this Agreement based upon the RTAA’s breach of the contract. In the event of termination due to RTAA breach, the Consultant is entitled to invoice the RTAA and to receive full payment for all services performed or furnished in accordance with this Agreement and all justified reimbursable expenses incurred by the Consultant through the effective date of termination action. The RTAA agrees to hold Consultant harmless for errors or omissions in documents that are incomplete as a result of the termination action under this clause.

ARTICLE 6 - ASSURANCES 6.1 Examination of Records. The RTAA, at any time, may cause an audit of the Consultant’s

books of accounts and financial records of the Project to be made by an employee or a representative of the RTAA. The books of accounts and records include the complete general ledger and any source documents or recordings that support the general ledger, including calculations, authorizations, attestations, warrants, affidavits, or other evidence of business transactions between the RTAA and the Consultant. Such books of accounts and records shall be made available to the RTAA upon demand. Failure to provide the RTAA with adequate books of accounts and records may be deemed by the RTAA to be a breach of the Agreement.

All books of accounts and records are to be made available at the Reno-Tahoe International

Airport upon request by RTAA for a period of three (3) years following the completion of this Agreement. If such books of accounts and records cannot be made available at the



Reno-Tahoe International Airport, then the Consultant shall pay the expenses of the RTAA representative to travel to the location of the books and records.

6.2 Ownership of Documents. All documents, including but not limited to, drawings, plans,

reports, charts, computations, presentations, and other data prepared or obtained under the terms of this Agreement, shall become the sole property of the RTAA and the RTAA has the right to copyright, register, or trademark as it deems appropriate with no licensing or permit fee to the Consultant. Reproducible copies of all drawings, plans, reports, charts, computations, presentations, and other pertinent data shall be provided to the RTAA upon completion of services or early termination of this Agreement under Article 5. Consultant shall not provide any of the RTAA’s documents to others without prior written authorization from the RTAA.

6.3 Compliance with Laws, Rules, and Regulations. Consultant agrees to be bound by the

provisions of RTAA's rules and regulations, all applicable laws, rules, and regulations adopted or made applicable to Consultant by any local, state, or federal authority having jurisdiction over the project or the RTAA.

6.4 Independent Contractors. The relationship of the parties under this Agreement is that of “Independent Contractor” as defined by N.R.S. §284.173. Neither party will be deemed to be an employee, agent, partner, franchisor, franchisee nor legal representative of the other for any purpose and neither will have any right, power nor authority to create any obligation or responsibility on behalf of the other.

ARTICLE 7 – REQUIRED AGREEMENT PROVISIONS There are specific contract provisions that are required by the RTAA, and the selected Consultant (including all sub-consultants) will be required to insert these contract provisions, verbatim, in each lower tier contracts (e.g. subcontract or sub-agreement). The selected Consultant (including all sub-consultants) are required to incorporate the applicable requirements of these contract provisions by reference for work done under any purchase orders, rental agreements, and any other agreements for supplies or services. The selected Consultant will be responsible for compliance with these contract provisions by any sub-consultant, lower-tier sub-consultant or service provider. Where the clause refers to the applicable activity, project, or program it means the Project. Where the clause refers to sponsor, it means the RTAA. 7.1 General Civil Rights Provisions. The Consultant agrees to comply with pertinent statutes,

Executive Orders and such rules as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. This provision binds the Consultant and sub-consultants from the bid solicitation period through the completion of the contract. This provision is in addition to that required by Title VI of the Civil Rights Act of 1964.

7.2 Title VI Solicitation Notice. The RTAA in accordance with the provisions of Title VI of

the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and



will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.

7.3 Title VI Clauses for Compliance with Nondiscrimination Requirements. Compliance with Nondiscrimination Requirements: During the performance of this contract, the Consultant, for itself, its assignees, and successors in interest (hereinafter referred to as the “Consultant”), agrees as follows: 7.3.1 Compliance with Regulations: The Consultant (hereinafter includes consultants)

will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract.

7.3.2 Nondiscrimination: The Consultant, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of sub-consultants, including procurements of materials and leases of equipment. The Consultant will not participate directly or indirectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21.

7.3.3 Solicitations for Subcontracts, including Procurements of Materials and Equipment:

In all solicitations, either by competitive bidding or negotiation made by the Consultant for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential sub-consultant or supplier will be notified by the Consultant of the consultant’s obligations under this contract and the Nondiscrimination Acts and Authorities on the grounds of race, color, or national origin.

7.3.4 Information and Reports: The Consultant will provide all information and reports

required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the sponsor or the Federal Aviation Administration to be pertinent to ascertain compliance with such Nondiscrimination Acts and Authorities and instructions. Where any information required of a consultant is in the exclusive possession of another who fails or refuses to furnish the information, the Consultant will so certify to the sponsor or the Federal Aviation Administration, as appropriate, and will set forth what efforts it has made to obtain the information.

7.3.5 Sanctions for Noncompliance: In the event of a Consultant’s noncompliance with

the nondiscrimination provisions of this contract, the sponsor will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to:

6.3.5.1 Withholding payments to the Consultant under the contract until the

Consultant complies; and/or 6.3.5.2 Cancelling, terminating, or suspending a contract, in whole or in part.

7.3.6 Incorporation of Provisions: The Consultant will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant thereto. The Consultant will take action with respect to



any subcontract or procurement as the sponsor or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the Consultant becomes involved in, or is threatened with litigation by a sub-consultant, or supplier because of such direction, the Consultant may request the sponsor to enter into any litigation to protect the interests of the sponsor. In addition, the Consultant may request the United States to enter into the litigation to protect the interests of the United States.

7.4 Title VI List of Pertinent Nondiscrimination Acts and Authorities. During the

performance of this contract, the Consultant, for itself, its assignees, and successors in interest (hereinafter referred to as the “Consultant”) agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

• Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin);

• 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964);

• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC § 4601) (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);

• Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended (prohibits discrimination on the basis of disability); and 49 CFR part 27;

• The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.) (prohibits discrimination on the basis of age);

• Airport and Airway Improvement Act of 1982 (49 USC § 471, Section 47123), as amended (prohibits discrimination based on race, creed, color, national origin, or sex);

• The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and consultants, whether such programs or activities are Federally funded or not);

• Titles II and III of the Americans with Disabilities Act of 1990, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 USC §§ 12131 – 12189) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38;

• The Federal Aviation Administration’s Nondiscrimination statute (49 USC § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex);

• Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations;

• Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);



• Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 USC 1681 et seq).

7.5 Federal Fair Labor Standards Act (Federal Minimum Wage. All contracts and

subcontracts that result from this solicitation incorporate by reference the provisions of 29 CFR part 201, the Federal Fair Labor Standards Act (FLSA), with the same force and effect as if given in full text. The FLSA sets minimum wage, overtime pay, recordkeeping, and child labor standards for full and part-time workers. The Consultant has full responsibility to monitor compliance to the referenced statute or regulation. The Consultant must address any claims or disputes that arise from this requirement directly with the U.S. Department of Labor – Wage and Hour Division.

7.6 Lobbying and Influencing Federal Employees. The Bidder or Offeror (Consultant) certifies by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the

Consultant, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

(3) The undersigned shall require that the language of this certification be included in the

award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

7.7 Occupational Safety and Health Act of 1970. All contracts and subcontracts that result from this solicitation incorporate by reference the requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The employer must provide a work environment that is free from recognized hazards that may cause death or serious physical harm to the employee. The employer retains full responsibility to monitor its compliance and their subcontractor’s compliance with the applicable requirements of the Occupational Safety and Health Act of 1970 (20 CFR Part 1910). The employer must address any claims or disputes that pertain to a referenced requirement directly with the U.S. Department of Labor – Occupational Safety and Health Administration.



7.8 Boycott of Israel. The RTAA is prohibited from entering into a contract with a company unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract not to engage in, a boycott of Israel. All contracts and subcontracts that result from this solicitation hereby acknowledge this confirmation through execution of this Agreement. Boycott of Israel means refusing to deal or conduct business with, abstaining from dealing or conducting business with, terminating business or business activities with or performing any other action that is intended to limit commercial relations with a) Israel; or b) A person or entity doing business in Israel or in the territories controlled by Israel, if such an action is taken in a manner that discriminates on the basis of nationality, national origin, or religion. The authorized signature below provides that the Consultant will comply with the following statement. The Consultant and each and every sub-consultant hereby certify that through the execution of this Agreement that the Consultant and/or sub- consultant is not currently engaged in, and agrees for the duration of the Agreement not to engage in, a boycott of Israel.

ARTICLE 8 - INTERESTS AND BENEFITS

8.1 Interest of Consultant. The Consultant covenants that it presently has no interest and

shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed.

8.2 Interest of Members of RTAA and Others. No officer, member or employee of the RTAA and no member of its governing body, who exercises any functions or responsibilities in the review or approval of the undertaking of carrying out of the services to be performed under this Agreement, shall participate in any decision relating to the Agreement which affects his/her personal interest or have any personal or pecuniary interest, direct or indirect, in the Agreement or the proceeds thereof.

ARTICLE 9 - ASSIGNABILITY The Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same without the prior written consent of the RTAA thereto provided, however, that claims for money due or to become due to the Consultant from the RTAA under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the RTAA. ARTICLE 10 – MISCELLANEOUS 10.1. Indemnification. Consultant shall defend, indemnify, and hold harmless the RTAA, its

Trustees, officers, agents, and employees from and against any and all liabilities, damages, losses, claims, actions, or proceedings, including, without limitation, reasonable attorneys’ fees, court costs, and expert fees that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the Consultant or the employees or agents of the Consultant in the performance of this Agreement. The RTAA shall give the Consultant reasonable notice of any such claims or actions. The Consultant shall also use counsel reasonable acceptable to the RTAA in carrying out its obligations. Any final judgment rendered against the RTAA for any cause for which the Consultant is liable hereunder shall



be conclusive against the Consultant as to liability and amount, where the time for appeal therefrom has expired. Consultant’s indemnification obligations are subject to and only to the extent such indemnity is not inconsistent with coverage provided by Consultant’s professional liability insurance policy. Indemnity requirement shall survive the expiration or early termination of this Agreement. Acceptance of the Consultant’s services by the RTAA shall not operate as a waiver of the rights granted the RTAA herein.

10.2. Insurance. Consultant shall procure at Consultant's expense and keep in effect at all times during the term of this Agreement until the completion of the work hereunder, or until early termination of this Agreement, whichever occurs first, the forms of insurance set forth in Exhibit B, Insurance Specifications.

It is the Consultant's responsibility to familiarize itself with the coverages described herein. Immediate notification must be given to the RTAA and/or its agent upon receiving any knowledge or notification of claim or litigation on which the RTAA may be named.

10.3. Governing Law. It is understood and agreed by and between the RTAA and Consultant that this Agreement shall be deemed and construed to be entered into and to be performed in the County of Washoe, State of Nevada, and it is further understood and agreed by and between the parties hereto that the laws of the State of Nevada shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of the Agreement. It is further understood and agreed by and between the parties hereto that any and all actions between the parties brought as a result of this agreement will be brought in the Second Judicial District Court in and for the County of Washoe, State of Nevada.

10.4. Notices. Any notice required or permitted under the terms of this Agreement or required by law must be in writing and must be delivered (a) by first class registered mail, or air mail, as appropriate, posted and fully prepaid to the appropriate address set forth below, or (b) via facsimile or email. Notices will be considered to have been given four (4) business days after deposit in the mail as set forth above, or upon receipt of facsimile confirmation or posted email. Either party may change its address for notice by notice to the other party given in accordance with this section. Notices to the Consultant shall be addressed to: Porter Group, LLC Honorable Jon C. Porter (Ret./NV) 428 New Jersey Avenue SE Washington, D.C. 20003 [email protected] Notices to the RTAA shall be addressed: Reno-Tahoe Airport Authority Purchasing & Materials Mgmt. Division 2770 Vassar Street Reno, NV 89502 [email protected]

10.5. Successor in Interest. Subject to the provision regarding assignment, this Agreement shall be binding upon, and inure to the benefit and detriment of the successors in interest and permitted assigns of the parties hereto.

mailto:[email protected]

mailto:[email protected]



10.6. Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

10.7. Confidentiality. Under Nevada state law, NRS §332.025, this Agreement and associated documents become a public record upon signing, subject to mandatory disclosure upon request by any person, unless the documents are exempted from public disclosure by a specific provision of law.

10.8. Relationship of the Parties. Nothing in this Agreement shall be deemed or construed by

the Parties or any third party as creating the relationship of principal and agent, partnership or joint venture between the Parties, it being understood and agreed that no provision contained herein, and no act of the Parties, shall be deemed to create any relationship between the Parties other than the relationship set forth herein.

10.9. Force Majeure. In no event shall the RTAA or Consultant be responsible or liable for any

failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God. It is understood that the RTAA or Consultant shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

10.10. Task Orders. This Agreement contains the entire understanding between the parties with reference to the matters contained herein, there being no terms, conditions, warranties, or representations other than those contained herein, and no task orders hereto shall be valid unless made in writing and signed by both parties to this Agreement.

10.11. Severability. To the extent that any provision hereof shall be finally determined by a court of competent jurisdiction to be void, illegal or otherwise unenforceable, the same shall have no affect upon the enforceability of the remaining provisions of this Agreement.

10.12. Waiver. No waiver of a breach of any covenant, term, or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach of the same or any other covenant, term, or condition, or waiver of the covenant, term, or condition itself. Neither the RTAA’s review, approval, or acceptance of, or payment for any of the services required under this Agreement shall be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and Consultant shall be and remain liable to the RTAA in accordance with applicable law for all damages to the RTAA caused by Consultant’s performance of any services furnished under this Agreement. The rights and remedies of the RTAA provided for under this Agreement are in addition to any other rights and remedies provided by law.

10.13. Attorneys’ Fees. In the event suit or action is instituted to enforce any of the terms or conditions of this Agreement, or litigation concerning the rights and duties of the parties to this Agreement, the losing party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statutes, such sum as the court may adjudge reasonable after taking into account the extent to which the prevailing party prevailed as attorney's fees in such suit or action, in both trial and appellate court.



10.14. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. The number of arbitrators shall be one. The place of arbitration shall be Reno, Nevada. Nevada law shall apply. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

10.15. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

10.16. Integration of Agreement. This Agreement and all exhibits incorporated herein constitute

the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all other previous proposals, both oral and written, negotiations, representations, commitments, writings, agreements and all other communications between the Parties. Any further modification to this Agreement must be in writing and signed by both Parties. In the event that any dispute arises or discrepancy exists between this Agreement and any of the exhibits incorporated herein, the terms and conditions contained in the body of this Agreement supersede those contained in the exhibits.

Exhibit A – Scope of Work Exhibit B – Insurance Specifications

REST OF PAGE DELIBERATELY LEFT BLANK [Signature page follows]



IN WITNESS THEREOF, the parties hereto have executed this Agreement the day and year first above written.

RENO-TAHOE AIRPORT AUTHORITY

PORTER GROUP, LLC

By: By:

Marily M. Mora, A.A.E. Jon Porter President/CEO Congressman (Ret./NV), President and CEO

STATE OF ____________________ s. COUNTY OF __________________ s. On this day of ____________, 20____, personally appeared before me, a notary public, ______________, known to me to be the President and CEO of PORTER GROUP, LLC named herein, and acknowledged that he executed the within Agreement on behalf of said Consultant. Notary Public (SEAL)


RFQ for Qualified Consulting Firms #17/18-18 State Lobbyist Services Attachment B / Exhibit A Page 1 of 4

EXHIBIT A

SCOPE OF WORK (attached)


RFQ for Qualified Consulting Firms #18/19-04 State Lobbyist Services Attachment B / Exhibit B Page 1 of 2

EXHIBIT B INSURANCE SPECIFICATIONS

INTRODUCTION The Reno-Tahoe Airport Authority (RTAA) has established specific insurance requirements for contracts to help assure that reasonable insurance coverage is purchased and safe working conditions are maintained. The Consultant’s attention is directed to the insurance requirements below. It is highly recommended that the Consultant confer with its respective insurance carriers or brokers to determine in advance of bid/proposal submission the availability of insurance certificates and endorsements as prescribed and provided herein. If there are any questions regarding these insurance requirements, it is recommended that the agent/broker contact the RTAA Manager of Finance directly at (775) 328-6435. If the Consultant fails to comply strictly with the insurance requirements, that Consultant may be disqualified from award of the contract. CONSULTANT PROVIDED INSURANCE The Consultant shall provide the following insurance coverage for itself, all sub-consultants, suppliers, material, and all others accessing the project on the Consultant’s behalf.

COMMERCIAL GENERAL LIABILITY INSURANCE Using Insurance Services Office “Commercial General Liability” policy form CG 00 01, with an edition date prior to 2004, or the exact equivalent. Such policy shall also include Broad Form Contractual Liability coverage and coverage for an additional insured shall not be limited to its vicarious liability. Defense costs must be paid in addition to limits. Limits shall be no less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate.

WORKERS’ COMPENSATION INSURANCE The Consultant and its sub-consultants shall procure Nevada Worker's Compensation Insurance as evidenced by a Certificate of Insurance from an acceptable insurance company covering Consultant’s employees for at least the statutorily required limits. Employer's Liability Insurance with a minimum limit of $1,000,000 per occurrence for bodily injury, $1,000,000 per employee for bodily injury by disease, $1,000,000 policy limit for bodily injury by disease, including stop gap insurance. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of RTAA.

BUSINESS AUTOMOBILE COVERAGE The Consultant and its sub-consultants shall be responsible for maintaining Business Auto Coverage on ISO form CA 00 01 including owned, and non-owned and hired autos, or the exact equivalent. Limits shall be no less than $1,000,000 per accident, Combined Single Limit. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall obtain evidence of personal auto liability coverage for each person.

PROFESSIONAL LIABILITY (when applicable) The Consultant shall maintain Professional Liability insurance (errors and omissions coverage) with limits of not less than $5,000,000 combined single limit per occurrence

DOES COVERAGE APPLY: YES ☒

NO ☐

N/A ☐


NO ☐

N/A ☐


NO ☐

N/A ☐


NO ☐

N/A ☐


RFQ for Qualified Consulting Firms #18/19-04 State Lobbyist Services Attachment B / Exhibit B Page 2 of 2

with a per location aggregate of $5,000,000.

If coverage is maintained on a claims-made basis, the following shall apply:

(a) The retroactive date must be shown and must be before the date of the contract or the beginning of the contract services.

(b) Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of the contract services.

(c) If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a retroactive date prior to the effective date of the contract, Consultant must purchase an extended period of coverage for a minimum of three (3) years after completion of the contract services.

CONSULTANT’S TOOLS AND EQUIPMENT The Consultant is responsible for its own tools and equipment whether owned, leased, rented, or borrowed for use at the RTAA worksite. ADDITIONAL INSURANCE CRITERIA It is the Consultant’s responsibility to familiarize itself with the coverages described herein. Consultant shall furnish the RTAA with insurance certificates as evidence that the foregoing insurance is in force prior to commencement of work on the contract, including complete copies of the policies if requested. The RTAA reserves the right to have the Consultant furnish the Consultant’s actual insurance policies for examination by the RTAA. In the event Consultant fails to provide RTAA with the insurance described, no work shall commence on the contract site. If the coverage required by the Consultant is terminated or reduced for any reason, all work on the contract site shall immediately stop until the all the required coverages are in place. Said policies, except Worker's Compensation and Professional Liability, shall name RTAA, its Board, officers, employees, related entities, and representatives as additional insureds. The policies will be primary and any other insurance carried by Consultant and/or RTAA shall be excess and not contributing therewith. Said policies shall be with insurance companies authorized to do business in the State of Nevada with an A. M. Best rating of A- VII or better. Such policies shall provide that written notice shall be given to RTAA thirty (30) days prior to cancellation or material change of any protection which said policies provide. The extent of coverage or the limits of liability provided under the policies procured by the Consultant and/or sub-consultants shall not be construed to be a limitation on the nature or extent of the Consultant’s obligations or to relieve the Consultant of any such obligations or representation by the RTAA as to the adequacy of the insurance to protect the Consultant against the obligations imposed on it by this or any other contract. Immediate notification must be given to the RTAA and/or its agent upon receiving any knowledge or notification of claim or litigation on which the RTAA may be named. COSTS Costs for providing such insurance as described above shall be incidental to the work.


Date: January 2, 2019 Memo: # 19(01)-03 To: Chairwoman & Board Members for: January 10, 2019 Board Meeting From: Manly M. Mora, A.A.E., President/CEO rrk---ei Subject: AUTHORIZATION FOR THE PRESIDENT/CEO TO EXERCISE THE FIRST

TWO-YEAR EXTENSION OPTION TO THE PROFESSIONAL SERVICES AGREEMENT FOR AUDITING SERVICES WITH CROWE LLP, IN THE AMOUNT OF $109,500

STAFF RECOMMENDATION Staff recommends that the Board authorize the President/CEO to exercise a two-year extension option of a professional services agreement with Crowe LLP to perform auditing services for the Reno-Tahoe Airport Authority (RTAA).

PURPOSE The existing agreement with Crowe LLP contains two 2-year options to extend the term and this action will authorize the President/CEO to exercise the first 2-year option for auditing services.

This action is in support of the RTAA Strategic Priority #1 — Financial Diversification and Growth, as adopted in the Fiscal Year (FY) 2019-2023 Comprehensive Strategic Plan, to ensure the financial stability of the airports under the RTAA's control ensuring that staff has maintained proper internal controls and reporting is transparent and accurate in all of our financial transactions.

BACKGROUND The Nevada Revised Statutes, Section 354.624 requires that the RTAA designate an independent auditor to complete an annual independent audit. The objective of the audit is to determine and report as to whether the financial statements are presented fairly and in conformity with generally accepted accounting principles. The objective also includes reporting on internal controls related to the financial statements and compliance with regulations associated with grant agreements, passenger facility charges and the expenditure of federal funds.

DISCUSSION The current agreement with Crowe LLP was approved by the Board on April 10, 2014 after a Request for Proposal (RFP) solicitation advertised on January 15, 2014 in the Reno Gazette Journal and a direct solicitation to 19 firms that had either expressed prior interest or were capable of providing such services. The RTAA received six proposals and held interviews with three finalists resulting in Crowe LLP being selected as the firm whose proposal was most advantageous to the RTAA. The RFP specified a 5-year term of service and two 2-year options to extend the term for up to a maximum term of nine years. See Section 1.4 of the attached Professional Services Agreement with Crowe Horwath dated May 13, 2014.

The proposed audit fees for the term extension are $54,600 and $54,900 for audit services related to fiscal years 2018-2019 and 2019-2020, respectively. This represents inflationary increases of

Crowe LLP, PSA Extension # 19(01)-03 January 10, 2019 Board Meeting Page 2 of 3

1.7% and 2.2% as compared to audit fees for fiscal year 2017-2018 fees, respectively. Based on the quality and timely completion of services from Crowe LLP over the five-year term and the competitiveness of the proposed fees, RTAA staff is requesting consideration from the Board of Trustees to extend the term as provided for in the current agreement.

COMPANY BACKGROUND Crowe LLP is one of the largest public accounting and consulting flans in the United States. Founded in 1942 in South Bend, Indiana, Crowe uses its deep industry expertise to provide audit services to public and private entities, while also helping clients reach their goals with tax, advisory, risk and performance services. With offices coast to coast and 3,000 personnel, Crowe is ranked as one of the nation's top 10 accounting firms.

The RTAA is served by the Indianapolis, Indiana office of Crowe LLP as lead by Scott Nickerson, Certified Public Accountant (CPA), Engagement Partner, and Kevin Kerswick CPA, Senior Manager. Mr. Nickerson has 28 years of auditing experience and Mr. Kerswick has over 9 years auditing experience.

FISCAL IMPACT Over the original five-year teim of the agreement, the RTAA expended $266,990 for auditing services. Below is the recap of the prior year fees followed by the proposed fees for the amendment, the fiscal impact is estimated to be as follows:

Fiscal Year Cost of Auditing Services

2013-2014 $52,710 2014-2015 53,890 2015-2016 53,310 2016-2017 53,370 2017-2018 53,710

Total $266,990

Fiscal Year Proposed Fees

2018-2019 $54,600 2019-2020 54,900

Fees for the audits will be budgeted in the Accounting and Administration Division budget for those subsequent fiscal years.

COMMITTEE COORDINATION This item is scheduled to be presented at the January 8, 2019 Finance and Business Development Committee meeting.

Crowe LLP, PSA Extension # 19(01)-03 January 10, 2019 Board Meeting Page 3 of 3

RECOMMENDATION It is hereby recommended that the Board adopt the following motion:

"It is hereby moved that the Board authorizes the President/CEO to enter into a two-year extension option to the professional services agreement for auditing services with Crowe LLP in the amount of $109,500."

MM/RC/lb

.> Professional Service Agreement

This agreement, entered into as of this 13th day of May. 2014, by and between:

RENO-TAHOE AIRPORT AUTHORITY P. 0. Box 12490 Reno, Nevada 89510

AND:

CROWE HORWATH LLP 3815 River Crossing Parkway, Suite 300 Indianapolis, IN 46240-0977

hereinafter referred to as the AUTHORITY

hereinafter referred to as the CONSULTANT

FOR THE PURPOSE of providing the following professional services:

PROFESSIONAL AUDIT SERVICES as the PROJECT

DO HEREBY, mutually agree as follows:

ARTICLE 1 — CONSULTANT'S SERVICES AND RESPONSIBILITIES

1.1 Engagement of the Consultant. The Authority hereby agrees to engage the Consultant who in turn agrees to perform the technical and professional services necessary to produce the Project. Furthermore, it is expressly understood that the Authority has the right to approve the terms and conditions of this Agreement as well as the proposed scope and costs of the technical and professional services to be conducted as part of the Project.

1.2 Scope of Services. The Consultant shall do, perform and carry out in a satisfactory manner, as determined by the Authority, the services generally outlined below and specifically indicated in Exhibit A — Scope of Services, attached and incorporated by reference hereto.

1.3 Notice to Proceed. The Authority shall issue the official Notice to Proceed. Any work performed by Consultant prior to the issuance of the Notice to Proceed shall be at Consultant's own risk. The Authority shall not be liable for claims of services performed until the official Notice to Proceed has been issued.

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2014 2015 2016 2017 2018 90 $53 3 111P-T $5;,310 Amount $52,710 $53 711)

1.4 Time of Performance. The term of this agreement shall be for an initial five (5) year period with two (2) two (2) year renewal options subject to a performance review and recommendation of the Finance and Business Development Committee of the Authority Board after the initial five (5) year period and the satisfactory negotiation of terms including a price acceptable to both the Authority and the selected firma period of five (5) years. The first year shall commence on May 14, 2014.

1.5 Responsibility of the Consultant. The Consultant shall be responsible for the professional quality, technical accuracy and the coordination of all services provided by the Consultant under this Agreement. The Consultant shall, without additional compensation, correct or revise any errors or deficiencies in any documents prepared in association with this Project.

1.6 Responsibility of the Authority. The Authority shall cooperate with the Consultant by making a diligent effort to provide items reasonably necessary for the Consultant to be able to provide its services, including all previous audits and audit findings, legal, accounting, and insurance information required for various projects; and providing locations and minutes for all meetings.

1.7 Additional Services. For purposes of this Agreement, additional services means services not identified in Exhibit A - Scope of Services, but that relate to the services being performed in connection with the Project. The Consultant may perform additional services only upon the written request of Authority.

ARTICLE 2- COMPENSATION AND METHOD OF PAYMENT

2.1 Compensation. It is expressly understood and agreed that the total compensation to be paid to the Consultant for provision of professional audit services shall be a firm fixed price amount not to exceed the total annual all-inclusive maximum price for the services specified in Exhibit A - Scope of Services. Such sum includes all expenses and shall constitute full and complete compensation for the Consultant's services and is in accordance with the table below.

The fee for any additional services required by the Authority will be based upon actual hours and expenses incurred by the Consultant and shall be in accordance with Exhibit B — Schedule of Fees.

2.2 Method of Payment. The Authority shall pay to the Consultant no more than the fixed price amount set out in Article 2.1 above. Payments shall be at monthly intervals subject to receipt of requisitions for payment from the Consultant specifying that he has performed the work and is entitled to the amount requisitioned under the terms of this Agreement.

Page 2

2.3 Consultant Responsibilities for Compensation. The Consultant shall prepare monthly invoices and progress reports which clearly indicate the progress to date and the amount of compensation due by virtue of that progress. All requisitions for payment shall be for work completed unless otherwise agreed to by the Authority, in writing.

2.4 Authority Responsibilities for Compensation. The Authority agrees to pay the Consultant's invoices net thirty (30) days from the date of receipt of the invoice from the Consultant. It is expressly understood that the Authority has the right to withhold payment on any invoice if he feels that the Consultant has not performed the requisitioned work efforts in a satisfactory manner. If the Authority does decide to withhold payments to the Consultant for any reason, he must provide written notifications and an explanation to the Consultant within ten (10) days of the date of the invoice.

2.5 Prompt Payment. The Consultant agrees to pay each sub-consultant under this Agreement for satisfactory performance of its agreement no later than fifteen (15) days from the receipt of each payment the Consultant receives from the Authority. The Consultant agrees further to return retainage payments to each sub-consultant within fifteen (15) days after the sub-consultant's work is satisfactorily completed. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of the Authority.

ARTICLE 3- CHANGES TO THE SCOPE OF SERVICES

The Authority may, at any time, and by written change order, make changes in the services to be performed under this Agreement. If such changes cause an increase or decrease in the Consultant's cost or time required for performance of any services under this Agreement, an equitable adjustment shall be made and the Agreement shall be modified in writing accordingly. Any claim of the Consultant for adjustment under this clause must be submitted in writing within thirty (30) days from the date or receipt by the Consultant of the notification of change. All changes to the Scope of Services shall be submitted on "Amendment to Professional Services Agreement" form as provided by Authority.

No services for which an additional cost or fee will be charged by the Consultant shall be furnished without the prior written authorization of the Authority.

ARTICLE 4- TERMINATION OF THE AGREEMENT

The Authority may, by written notice to the Consultant, terminate this Agreement in whole or in part at any time, in its sole discretion with or without cause. Upon receipt of such notice, the Consultant shall: (1) immediately discontinue all services affected (unless the notice directs otherwise); and (2) deliver to the Authority copies of all data, drawings, reports, estimates, summaries and such other information and materials as may have been accumulated by the Consultant in performing this Agreement, whether completed or in process. Upon termination of this Contract by the Authority, Consultant shall be paid the reasonable value, based on Exhibit A, of all work satisfactorily performed by the Consultant prior to termination.

Page 3

ARTICLE 5- ASSURANCES

5.1 Examination of Records. The Authority, at any time, may cause an audit of the Consultant's books of accounts and financial records only related to our services for the Authority to be made by an employee or a representative of the Authority. The books of accounts and records include the complete general ledger and any source documents or recordings that support the general ledger, including calculations, authorizations, attestations, warrants, affidavits, or other evidence of business transactions between the Authority and the Consultant. Such books of accounts and records shall be made available to the Authority upon demand. Failure to provide the Authority with adequate books of accounts and records may be deemed by the Authority to be a breach of the Agreement.

All books of accounts and records are to be made available within the greater Reno/Sparks metropolitan area for a period of three years following the completion of the contract or agreement. If such books of accounts and records are not available in the greater Reno/Sparks area, then the Consultant shall pay the expenses of the Authority representative to travel to the location of the books and records.

5.2 Ownership of Documents. All documents, including but not limited to, computations, audit findings, and other data prepared or obtained under the terms of this Agreement, shall become the sole property of the Authority and the Authority has the right to copyright, register, or trademark as it deems appropriate with no licensing or permit fee to the Consultant. Reproducible copies of documents and other pertinent data shall be provided to the Authority upon completion of services or early termination of this Agreement under Article 4. Consultant shall not provide any of the Authority's documents to others without prior written authorization from the Authority.

Notwithstanding anything herein to the contrary, Contractor may retain data, documentation and information (including Confidential Information) sufficient to evidence performance, for archival purposes in accordance with professional standards, and subject to the confidentiality provisions hereof. In accordance with professional standards and requirements, workpapers created by a public accounting firm are the property of the auditor, and must be maintained as such to ensure the integrity of the audit process.

5.3 Compliance with Laws. Rules, and Regulations. Consultant agrees to be bound by the provisions of Authority's rules and regulations, all applicable laws, rules, and regulations adopted or made applicable to Consultant by any local, state, or federal authority having jurisdiction over the project or the Authority.

Page 4

ARTICLE 6- SUSPENSION OF WORK

The Authority may order the Consultant, in writing, to suspend all or any part of the work for such period of time as the Authority may determine to be appropriate for the convenience of the Authority.

If the performance of all or any part of the work is, for any unreasonable period of time, suspended or delayed by an act of the Authority in the administration of this Agreement, or by its failure to act within the time specified in the Agreement (or if no time is specified, within a reasonable time), an adjustment shall be made for any increase in cost of performance of this Agreement necessarily caused by such unreasonable suspension or delay, and the Agreement modified in writing accordingly. However, no adjustment shall be made under this clause for any suspension or delay to the extent: (1) that performance would have been suspended or delayed by any other cause, including the fault or negligence of the Consultant; or, (2) for which an equitable adjustment is provided for or excluded under any other provision of this Agreement.

ARTICLE 7 - INTERESTS AND BENEFITS

7.1 Interest of Consultant. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed.

7.2 Interest of Members of Authority and Others. No officer, member or employee of the Authority and no member of its governing body, who exercises any functions or responsibilities in the review or approval of the undertaking of carrying out of the services to be performed under this Agreement, shall participate in any decision relating to the Agreement which affects his personal interest or have any personal or pecuniary interest, direct or indirect, in the Agreement or the proceeds thereof.

ARTICLE 8- ASSIGNABILITY

The Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same without the prior written consent of the Authority thereto provided, however, that claims for money due or to become due to the Consultant from the Authority under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Authority.

ARTICLE 9- MISCELLANEOUS

9.1 Indemnification. Consultant shall defend, indemnify, and hold harmless the Authority, its Trustees, officers, agents, and employees from and against any and all liabilities, damages, losses, claims, actions, or proceedings, including, without limitation, reasonable attorneys' fees that are caused by the gross negligence, errors, omissions, recklessness or intentional misconduct of the Consultant or the employees or agents of the Consultant in the performance of this contract. The

Page 5

Authority shall give the Consultant reasonable notice of any such claims or actions. The Consultant shall also use counsel reasonably acceptable to the Authority in carrying out its obligations. Indemnity requirements shall survive the expiration or early termination of this agreement. Acceptance of the Consultant's services by the Authority shall not operate as a waiver of the rights granted the Authority herein.

INDEMNIFICATION FOR THIRD-PARTY CLAIMS — In the event of a legal proceeding or other claim brought against Consultant by a third party, except where it is judicially determined that Consultant performed its Services with gross negligence or intentional misconduct, the Authority shall indemnify and hold harmless Consultant and its personnel to the extent allowed by law against all costs, fees, expenses, damages and liabilities, including attorney fees and any other fees or defense costs associated with such third-party claim, arising from or relating to any Services, work product, or other work performed by Consultant that the Authority uses or discloses to others or this engagement generally. This indemnification is intended to apply to any and all claims to the full extent allowed by law, regardless of the grounds or nature of any claim asserted, including (without limitation) to claims based on principles of contract, negligence or other tort, fiduciary duty, warranty, statute or common law. This indemnification shall also apply after termination of this agreement.

Except where consultant has performed its Services with gross negligence or intentional misconduct, Crowe's liability shall not exceed fees paid by you to Crowe for the portion of the work giving rise to liability This limitation of liability is intended to apply to any and all claims to the full extent allowed by law, regardless of the grounds or nature of any claim asserted, including (without limitation) to claims based on principles of contract, negligence or other tort, fiduciary duty, warranty, statute or common law. This limitation of liability shall also apply after termination of this agreement.

The Authority will release, indemnify, defend, and hold Consultant harmless from any liability and costs resulting from judicially determined misrepresentations, criminal acts or fraud by Authority management, board, legal or statutory representatives.

9.2 Worker's Compensation Insurance. Consultants and subcontractors shall obtain and keep in full force and effect throughout the term of this Agreement compensation insurance necessary in connection with the performance of this Agreement to protect Consultants and subcontractors and their employees under workers compensation and industrial insurance laws. Consultants and subcontractors shall indemnify and hold harmless the Authority, its officers, agents, and employees from any liabilities, claims, losses, or expenses which result to Authority by virtue of Consultant's and subcontractor's failure to comply with this provision and Consultants and subcontractors hereby waives the right to any amount due under this Agreement which equals the amount of any premiums Authority has had to pay for Consultant's and subcontractor's failure to comply with this provision.

Page 6

9.3 Liability Insurance. Consultant shall procure at Consultant's expense and keep in effect at all times during the term of this Agreement until the completion of the work hereunder, or until early termination of this Agreement, whichever occurs first, the forms of insurance set forth in this paragraph. All policies or certificates shall contain a provision that written Notice of Cancellation or any material change in said policy by the insurer shall be delivered to Authority thirty (30) days in advance of the effective date thereof, unless comparable coverage is promptly secured by Contractor. All policies of insurance shall be primary coverage for all claims and losses arising from or connected with the work performed under this Agreement.

Consultant shall maintain all insurance hereunder with insurance underwriters authorized to do business in the State of Nevada and who are satisfactory to Authority. All policies shall name Authority, its Trustees, officers, agents and employees as additional named insured or shall contain a cross liability endorsement. Consultant shall furnish Authority with certificates from insurance carriers showing all insurance required hereunder to be in full force and effect during the entire term of this Agreement, or shall deposit with Authority certified copies of said policies.

Consultant shall purchase and maintain during the life of this agreement and any subsequent extensions thereto Professional Errors and Omissions Insurance in the amount of One Million Dollars ($1,000,000).

9.4 Governing Law. It is understood and agreed by and between the Authority and Consultant that this Agreement shall be deemed and construed to be entered into and to be performed in the County of Washoe, State of Nevada, and it is further understood and agreed by and between the parties hereto that the laws of the State of Nevada shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of the Agreement. It is further understood and agreed by and between the parties hereto that any and all actions between the parties brought as a result of this agreement will be brought in the Second Judicial District Court in and for the County of Washoe, State of Nevada.

9.5 Notices. Any notices required or permitted to be given under this Agreement shall be deemed given when mailed to a party by certified mail, return receipt requested, to the address set forth following the signatures of the parties herein, or to such other address as a party shall give the other from time to time.

9.6 Successor in Interest. Subject to the provision regarding assignment, this Agreement shall be binding upon, and inure to the benefit and detriment of the successors in interest and permitted assigns of the parties hereto.

9.7 Amendments. This Agreement contains the entire understanding between the parties with reference to the matters contained herein, there being no terms, conditions, warranties, or representations other than those contained herein, and no amendments hereto shall be valid unless made in writing and signed by both to this Agreement.

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9.8 Severability. To the extent that any provision hereof shall be finally determined by a court of competent jurisdiction to be void, illegal or otherwise unenforceable, the same shall have no effect upon the enforceability of the remaining provisions of this Agreement.

9.9 Attorneys' Fees. In the event suit or action is instituted to enforce any of the terms or conditions of this Agreement, or litigation concerning the rights and duties of the parties to this Agreement, the losing party shall pay to the prevailing party, in addition to the costs and disbursements allowed by statutes, such sum as the court may adjudge reasonable after taking into account the extent to which the prevailing party prevailed as attorney's fees in such suit or action, in both trial and appellate court.

IN WITNESS THEREOF, the parties hereto have executed this Agreement the day

and year first above written.

RENO-TAHOE AIRPORT AUTHORITY CROWE HORWATH LLP

By: IV\ By: /de-4,5 Madly M. Mora, A.A.E. Scott Nickerson

President/CEO Partner

STATE OF INDIANA s. S.

COUNTY OF MARION s.

On this 13th day of May 2014 personally appeared before me, a notary public, Scott Nickerson, known to me to be a Partner of the Consultant named herein, and acknowledged that he executed the within Agreement on behalf of said Consultant.

Notary Public

Attachments:

Exhibit A — Scope of Services Exhibit B — Schedule of Fees

AVEIT I, LORI L WILLIS Notary Public, State of Indiana

Hamilton County

E. Commission # 633924

4E: My Commission Expires

lllllllll March 19,2020

Page 8

EXHIBIT A

SCOPE OF WORK

The Authority desires the auditor to express an opinion on the fair presentation of its general-purpose financial Statements in conformity with generally accepted accounting principles.

The auditor is required to audit the supporting schedules contained in the comprehensive annual financial report. The auditor is not required to audit the statistical section of the report.

The auditor will also prepare Federal Financial Assistance audit reports, as required by OMB Circular A-133, which contain (1) a description of the scope and results of procedures performed with respect to applicable requirements for each major federal program, which includes an opinion on compliance, (2) an opinion, based on their audit, on the schedule of expenditures of federal awards, and (3) an auditors' schedule of findings and questioned costs..

Auditing Standards to be followed

To meet the requirements of this Request for Proposals, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for financial audits set forth in the U.S. General Accounting Office's Government Auditing Standards, the provisions of the Single Audit Act of 1984 and Amendments of 1996 and the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments.

Reports to be issued

Following the completion of the audit of the fiscal year's financial Statements, the auditor shall issue:

1. A report on the fair presentation of the. financial Statements in conformity with generally accepted accounting principles.

2. A report on the internal control structure based on the auditor's understanding of the control structure and assessment of control risk related to applicable laws and regulations under Government Auditing Standards.

3. A report on compliance with applicable laws and regulations under Government Auditing Standards.

Page 9

4. A report on the Schedule of Expenditures of Federal Awards.

5. Schedule of Findings and Questioned Costs - A report (when applicable) on compliance with laws, regulations and the provisions of contracts or grant agreements, which have a direct and material effect on each major program and communicate instances of immaterial noncompliance identified in a letter to management.

6. A report on compliance with revenue bond resolutions.

7. Reporting to the Finance Committee:

The reports on compliance shall include all instances of non-compliance irregularities and illegal acts. Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the Authority's Finance Committee.

Auditors shall assure the Authority's Finance and Business Development Committee is informed of each of the following:

a. The auditor's responsibility under generally accepted auditing standards.

b. Significant accounting policies.

c. Management judgments and accounting estimates.

d. Significant audit adjustments.

e. Other information in documents containing audited financial Statements.

f. Disagreements with management.

g. Management consultation with other Accountants.

h. Major issues discussed with management prior to retention.

i. Difficulties encountered in performing the audit.

Special Considerations

1. The Authority will prepare and send its comprehensive annual financial report to the Government Finance Officers Association of the United States and Canada for review in their Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will provide guidance to the Authority to meet the requirements of that program.

Page 10

2. The Authority has determined that the United States Department of Transportation (Federal Aviation Administration) will function as the cognizant agency in accordance with the provisions of the Single Audit Act of 1984 and Amendments of 1996 and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments.

3. The schedule of Federal financial assistance and related auditor's report, as well as the reports on the internal controls and compliance, are to be issued as part of the comprehensive annual financial report.

4. The Reno-Tahoe Airport Authority may require the auditor's assistance to comply with any new reporting requirements.

Working Paper Retention and Access to Working Papers

All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the firm is notified in writing by the Authority of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the following parties or their designees:

1. Reno-Tahoe Airport Authority 2. Department of Transportation (Federal Aviation Administration) 3. U.S. General Accounting Office (GAO) 4. Parties designated by the Federal or State governments or by the

Authority as part of an audit quality review process.

In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to the matters of continuing accounting significance.

Page 11

EXHIBIT B

SCHEDULE OF FEES

The fee for any additional services, per Paragraph 2.1 of the Professional Service Agreement, required by the Sponsor shall be based upon actual hours and expenses incurred by the Consultant and charged in accordance with the following schedule of fees.

Hourly Rate $350 - $425 $185 -$250 $125 -$155 $90 - $115

Partner Yeaummutiomilli Managers AMNIA" Supervisory Staff 1111111111. Staff WIEN

The Consultant does not charge for any out of pocket expenses or travel related costs unless other terms are agreed upon in advance.

The above are general hourly rate ranges. The Consultant typically quotes a project fee with discounted rates once the scope of work and skill sets need are determined.

Page 12

Internet Access Request

To assist Crowe Horwath LLP (Crowe) staff while at your facility(s), we request permission to use your network resources to reach the Internet. This access is needed to allow us to:

• Establish a VPN connection to Crowe's network for access to Crowe's online resources, • Send/receive Lotus Notes-based workpapers and email to Crowe's office servers,

and/or • Access various online professional reference materials via the Internet.

Please indicate below the type of Internet access that may be used:

Connection to your internal network to allow access to the Internet and to allow VPN connections to Crowe's network.1

Connection to your internal network to allow access to the Internet without VPN capabilities.

Connection to your guest network to allow access to the Internet. This connection may be used for both access to the Internet and for VPN connections to Crowe's network. 1

Connection to your guest network to allow access to the Internet without VPN capabilities.

Other external connection to the Internet (e.g., a network sandbox or separate DSL connection). This connection may be used for both access to the Internet and for VPN connections to Crowe's network. 1

1— For VPN, Crowe Horwath uses the Cisco VPN client. Our implementation of this product requires TCP/IP port 10000 or UDP port 10000 to be open bi-directionally in any firewall through which the connection passes.

We appreciate your cooperation in this matter and will use the Internet access resources in a manner consistent with Crowe Horwath's own policies for Internet usage. If you have any questions regarding this request, we will be pleased to have one of our IT Specialists contact your IT Specialist(s) to discuss and arrange any technical details. Thank you.

The above request is acknowledged and permission is hereby granted for Crowe personnel to use our network resources to reach the Internet as described above:

Company: de T/4 A

Your Name: in-/A4 AJ /14

Title: DiaE"-C-77)47_ ---6-Ci-litzOteei 4-1

Signature:

Date: "7 AM 2-sir

2016 2017 % Diff. % Duff.

Passengers

2018

Passengers

JAN 259,868 284,553 9.5% 312,125 9.7%

FEB 269,807 286,322 6.1% 296,726 3.6%

MAR 311,974 353,651 13.4% 356,112 0.7%

I st Quarter 841,649 924,526 9.8% 964,963 4.4%

APR 273,707 302,078 10.4% 325,428 7.7%

MAY 288,763 317,935 10.1% 345,740 8.7%

JUN 338,954 367,600 8.5% 389,103 5.8%

2nd Quarter 901,424 987,613 9.6% 1,060,271 7.4%

JUL 356,768 400,754 12.3% 414,529 3.4%

AUG 349,934 393,478 12.4% 402,794 2.4%

SEP 325,698 345,280 6.0% 362,831 5.1%

3rd Quarter 1,032,400 1,139,512 10.4% 1,180,154 3.6%

OCT 304,447 336,433 10.5% 347,591 3.3%

NOV 270,367 300,308 11.1% 315,833 5.2%

DEC 300,543 326,989 8.8%

4th Quarter 875,357 963,730 10.1%

TOTAL 3,650,830 4,015,381 10.0%

YTD Total 3,688,392 3,868,812 4.9%

President/CEO's Report December 2018

Marily M. Mora, A.A.E., President/CEO '?:57141,1

Air Service • Reno-Tahoe International Airport (RNO) served 315,833 passengers in November 2018, an increase

of 5.2% versus the same period last year. The airport experienced positive passenger growth for the 42nd consecutive month with respect to the year-over-year monthly increases. During the first 11 months of 2018, RNO served 3,868,812 passengers, an increase of 4.9% when compared to the same period last year.

TOTAL PASSENGERS

450,000

400,000

350,000

300,000

250,000

200,000

150,1300

100,000

50,000

0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

-4,-2016 -0-2017 2018

President/CEO' s Report - December 2018 January 10, 2019 Board Meeting Page 2 of 13

• Recent and Upcoming Schedule Changes

+ Alaska Airlines o Alaska Airlines offers non-stop flights between Reno and Portland six days a week Sunday

through Friday. The airline will offer this flight daily from December 16, 2018, until January 19, 2019.

• Allegiant Air o Allegiant Air offers non-stop flights between Reno and Las Vegas. The upcoming schedule is

as follows: • Five days a week (Mondays, Wednesdays, Thursdays, Fridays and Sundays) from

January 9, 2019, until February 11, 2019 • Daily service begins from February 13, 2019

+ American Airlines o Starting November 4, 2018, American Airlines increased the number of daily flights between

Reno and Los Angeles from four times a day to five times a day. The airline will return to the four times a day schedule on April 2, 2019.

o American Airlines temporarily suspended the non-stop seasonal flights between Reno and Chicago O'Hare on October 4, 2018. This flight will return on May 3, 2019.

+ Delta Air Lines o Delta Air Lines' non-stop seasonal flight between Reno and Atlanta operated daily from

December 23, 2018, until January 2, 2019. From January 6, 2019, through March 31, 2019, this flight will operate on Sundays only.

o Delta Air Lines' non-stop seasonal flight between Reno and Minneapolis operated as a daily service from December 22, 2018, until January 2, 2019. This flight will return during the summer season.

+ Frontier Airlines o Starting November 14, 2018, Frontier Airlines reduced the number of non-stop flights

between Reno and Denver from four times a week to twice a week (Wednesdays and Saturdays). From January 10, 2019 until February 28, 2019, the airline will offer this flight on Thursdays and Sundays. Starting March 2, 2019, the airline will offer this flight on Wednesdays and Saturdays.

• JetBlue Airways o Starting November 26, 2018, JetBlue Airways decreased the number of non-stop flights

between Reno and New York City from four times a week to three times a week (Mondays, Thursdays and Sundays). This flight operated daily from December 13, 2018 until January 7, 2019. Starting January 10, 2019, the airline will return to the four days a week schedule (Mondays, Thursdays, Fridays and Sundays).


± Southwest Airlines • Southwest Airlines' non-stop seasonal flight between Reno and Dallas Love Field will

operate on the following schedule: • Sundays only from January 13, 2019 until March 3, 2019 • Saturday/Sunday only from March 9, 2019 until April 7, 2019

o Southwest Airlines temporarily suspended the non-stop daily flights between Reno and Chicago Midway on October 3, 2018. This flight will return on March 7, 2019.

o Southwest Airlines operates twice a day flights between Reno and Oakland. The airline will offer this flight three times a day from March 7, 2019, until April 7, 2019.

o From December 1, 2018 until January 6, 2019, Southwest Airlines increased the number of non-stop flights between Reno and San Jose from one flight a day to up to three times a day on select days of the week. Starting January 7, 2019, the airline will offer twice a day service Monday through Friday and once a day service on Saturdays and Sundays. Starting April 8, 2019, Southwest will increase the weekday flights to three times a day.

o Southwest Airlines offers non-stop flights between Reno and San Diego twice a day. From January 6, 2019 until March 6, 2019, the airline will offer this flight three times a day, before returning to the twice a day schedule.

± United Airlines o United Airlines' non-stop seasonal flight between Reno and Chicago O'Hare was temporarily

suspended on September 3, 2018. The airline will operate this flight on Saturdays and Sundays from February 16, 2019, until March 3, 2019. Starting March 8, 2019, until March 31, 2019, United will offer this service daily, before returning to the Saturday/Sunday schedule on April 6, 2019.

o United Airlines' non-stop seasonal flight between Reno and Houston was recently upgraded from a seasonal to a year-round service. Typically, the airline offers this route on Saturdays and Sundays only. However, United will operate this flight daily from February 14, 2019 until March 31, 2019.

• Volaris o Volaris offers non-stop flights between Reno and Guadalajara, Mexico, three days a week

(Mondays, Wednesdays and Fridays).

2016 2017 2018 % Diff.

Cargo in Pounds Pounds Metric

IAN 11,939,003 12,749,916 6.8% 11,795,775 5,350 -7.5%

FEB 10,947,416 12,023,060 9.8% 11,417,480 5,178 -5.0%

MAR 13,004,808 13,595,007 4.5% 13,053,097 5,920 -4.0%

1st Quarter 35,8 91,227 38,367,983 6.9% 36,266,3 52 16,447 -5.5%

APR 12341,233 11,974,440 -3.0% 10,826,085 4,910 -9.6%

MAY 12,088,321 12,671,643 4.8% 12,245,815 5,554 -3.4%

lUN 13,432,224 12.396,234 -7.7% 12,225,509 5.544 -1.4%

2nd Quarter 37,8 61,778 37,042,317 -2.2% 35,297,4 09 16,008 -4.7%

JUL 12691,135 11,454,156 -9.7% 12,233,364 5,548 6.8%

AUG 13,977,442 13,472,975 -3.6% 13,689,777 6,209 1.6%

SEP 13,347,173 12436,806 -6.8% 12,052,727 5,466 -3.1%

3rd Quarter 40,0 15,75 0 37,363,937 -6.6% 3 7,975,8 68 17,223 1.6%

OCT 12,305,525 12,169,329 -1.1% 12,548,739 5,691 3.1%

NOV 13,089,468 12,446,633 -4.9% 12,645,887 5,735 1.6%

DEC 17,247,162 14,882,745 -13.7%

4th Quarter 42,6 42,155 39,498,707 -7.4%

TOTAL 156,410,910 152,272,944 -2.6%

YTD Total 137,390,199 134,734,255 61,104 -1.9%

% Diff.

President/CEO's Report - December 2018 January 10, 2019 Board Meeting Page 4 of 13

• RNO handled 12,645,887 pounds of air cargo in November 2018, an increase of 1.6% when compared to November 2017. During the first 11 months of 2018, RNO handled 134,734,255 pounds of air cargo, a decrease of 1.9% when compared to the same period last year.

TOTAL CARGO 20,000,000

18,000,000

16,000,000

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0 JAN FEB MAR APR MAY JUN JUL AUG SEF' OCT NOV DEC

-•-2016 -4-2017 -8-2018

TOTAL SEORT TER7, LONG TERM TRANS.

REVENUE

120.00

locum

80.00

60.00 #.

40.00

20.00

0.00 TOTAL (DIV BY 10.000)

$ PER UT AVG SR- TRANS S. AVG.5

TRANSACTIONS

45,000

40,00C

35,000

30.000

25,000

20,000

15,008

10.000

5.065

rl

IT sNov 18117

sNov 17/18

°Nov 18109

.Nov 16117 • Nov 17118

o Nov 18/19


Parking and Ground Transportation Activities

NOVEMBER PUBLIC PARKING STATISTICS MONTHLY COMPARISON BETWEEN FY 2016/17, FY 2017/18, AND FY 2018/19

COMPARISON MONTHS REVENUE TRANS.

$ PER TRANS.

LONG TERM TRANSACTIONS SHORT TERM TRANSACTIONS TOTAL AVG. REVENUE I DURATION (DAYS) TOTAL AVG. REVENUE DURATION (HOURS)

NOVEMBER 16/17 5903.563.00 40.579 S22.27 16,710 $47.00 I 4.0 23.869 $4.96 4.3

NOVEMBER 17/18 5950.638.00 I 42.081 I $22.59 I 17.746 I $46.15 I 3.9 I 24.335 I 55.41 I 4.7

NOVEMBER 18/19 151.034.001.00 I 43,468 I $23.79 I 19.537 I $45.97 I 3.9 I 23.931 I $5.68 I 5.0

DIFFERENCE BETWEEN NOVEMBER 2016/17 AND NOVEMBER 2017(18

REVENUE TRANS. 5 PER

TRANS. LONG TERM TRANSACTIONS SHORT TERM TRANSACTIONS

TOTAL AVG. REVENUE I DURATION (DAYS) TOTAL 1 AVG. REVENUE DURATION (HOURS) $47,075.00 1,502 _ $0.32 1.036 (50.85) I 10.1) 466 I 50.45 0.4

DIFFERENCE BETWEEN NOVEMBER 2017118 AND NOVEMBER 2018(19

REVENUE TRANS. $ PER

TRANS. LONG TERM TRANSACTIONS SHORT TERM TRANSACTIONS

TOTAL AVG. REVENUE I DURATION (DAYS) TOTAL AVG. REVENUE DURATION (HOURS) $83.363.00 1.387 $1.20 1,791 (SO 10) I 0.0 (404) S0.27 0.3

• Taxi vs. TNC Comparison A review of monthly trips by Transportation Network Companies (TNCs) and year over year trips for taxis in the month of November have been completed.

TNC (Uber & Lyft) trip activity increased from 9,379 trips in November 2017 to 12,428 trips in November 2018, representing an increase of 3,049 trips, and a year over year growth of 32.51%.

Taxi trip activity decreased from 6,662 trips in November 2017 to 5,208 trips in November 2018, for a total decrease of 1,454 trips, and a year over year decline of 21.83%.

TNC trips account for 70.47% of all TNC/Taxi customer transport.

TNC TNC TNC Trip

Taxi Taxi Taxi Trip

Month Trips Trips Trips Trips Variance Variance

2017 2018 2017 2018

January 6,583 10,180 3,597 7,640 5,722 -1,918

February 6,657 9,479 2,822 6,771 5,549 -1,222

March 8,003 12,026 4,023 7,565 6,966 -599

April 6,590 10,151 3,561 6,050 5,923 -127

May 6,888 10,721 3,833 6,373 6,145 -228

June 8,269 11,254 2,985 6,990 6,185 -805

July 9,220 12,614 3,394 7,243 6,208 -1,035

August 10,849 14,895 4,046 9,679 7,244 -2,435

September 9,702 13,278 3,576 7,395 6,346 -1,049

October 9,121 12,595 3,474 7,215 6,039 -1,176

November 9,379 12,428 3,049 6,662 5,208 -1,454

December 9,070 5,652

Totals 100,331 129,621 38,360 85,235 67,535 -12,048


TNC / TAXI - TOTALS COMPARISON

TNC = Transportation Network Companies

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

11••• ••1111r111 TN' 11

111111141111111 11 11111111111 111111111111 111111111111

• INC Trips 2017

• TNC Trips 2018

• Taxi Trips 2017

• Taxi Trips 2018

N-NP

Reno-Tahoe International Airport (RNO) Outside Commercial Properties • Airport Mini Warehouse

A-Rooter-Man Plumbing, Sewer & Drain Cleaning Service, Inc. A First Amendment to Commercial Lease Agreement was executed with A-Rooter-Man Plumbing, Sewer & Drain Cleaning Service, Inc., for 24 months at 2890 Vassar St., Suites BB-11 & 12. A-Rooter-Man will utilize the 2,000 square feet of space for general office and equipment storage. Total contract value is $21,097.68.

Econo Backhoe A First Amendment to Commercial Lease Agreement was executed with Econo Backhoe, Inc., for 12 months at 2890 Vassar St., Suite BB-15. Econo will utilize the 1,000 square feet of space for operation of an excavation company. Total contract value is $6,279.12.

Keen Concepts A First Amendment to Commercial Lease Agreement was executed with Keen Concepts for 12 months at 2900 Vassar St., Suites CC-22 & 23. Keen will utilize the 2,200 square feet of space for operation of a granite fabrication shop. Total contract value is $11,302.32.

President/CEO' s Report — December 2018 January 10, 2019 Board Meeting Page 7 of 13

• 1280 Terminal Way Integrative Provider Network A First Amendment to Commercial Lease Agreement was executed with Integrative Provider Network for 12 months at 1280 Terminal Way, Suites 2, 3, 12 & 13. 1PN will utilize the 883 square feet of space for general office use. Total contract value is $8,161.56.

A Natural Sparkle A First Amendment to Commercial Lease Agreement was executed with A Natural Sparkle for 12 months at 1280 Terminal Way, Suite 4. A Natural Sparkle will utilize the 631 square feet of space for general office use and operation of a janitorial services company. Total contract value is $7,387.67.

RNO Concessions and Terminal Tenants • Subway

Subway is currently underway with plan review and permitting at City of Reno. Subway is also working to execute a contract with a local contractor for its buildout. Permitting should be completed in February with a possible construction start in late February/early March.

RNO Land Development • Aloft Hotel at Gateway Center

Dianda Construction, on behalf of JMA Ventures, began construction on the Aloft Hotel in December 2018. The anticipated hotel opening date is January 2020. Annual rent of $164,657 commences on March 1, 2019.

JMA Ventures continues to work with CBRE to market and lease the option site, which is proposed for a Class-A office building. The ground lease request for approval will come back to the Board when the building is 50% pre-leased or before the option expires on March 1, 2020.

• Home Gardens South On December 17, 2018, Staff received an email from Mr. George Condon, Partner, Western Region, of Dermody Properties indicating that Dermody is moving in a new direction in regards to the development of the Home Gardens property and will not be able to execute the ground lease prior to December 31, 2018. Mr. Condon was advised that based on the information provided, the RTAA will consider the August 9, 2018 Board authorization null and void and will close out the July 18, 2018 executed Letter of Intent between the RTAA and Dermody Properties.

Organizational Training & Development • A "Public Safety Tour" was offered for staff, answering questions such as "what does it mean to

work at an airport?" and "what is unique about our environment?" Taught quarterly by Operations staff, this class provided participants with a broader understanding of public safety, landside operations, security, and customer service.


• HR Staff taught an "Emergenetics De-Brief' class for new employees who have recently taken the Emergenetics profile. Emergenetics is defined as a blend of genetics and learned experiences expressed as a behavior and a way of thinking. These thinking and behavioral attributes affect your communication, creativity, productivity and ability to work together with others. The RTAA has utilized this tool for many years to strengthen teams, communication, and organizational effectiveness.

Miscellaneous Information • Since December 10th, the airport has received approximately 200 letters of support to keep the

NDOT fly-over ramps. On Dec. 30th, the Reno Gazette-Journal published an Our Turn column from Chair Gianoli which further increased the letters of support.

• Reno-Tahoe International Airport's followers on social media have increased during the month of December. Facebook followers are at 14,648, Twitter grew to 8,211 followers, and Instagram followers are at 1,290.

• Highlights on social media included: Airfare deals, Paws4Passengers, and travel tips for holiday travelers, the Kindness Takes Flight team paired with the Reno Philharmonic, Christmas caroling throughout the terminal on December 20th, "Go Caroling Day",

If the Employee Photo Contest winner was announced with an American Airlines employee taking the prize. In addition, the New Year's Resolution Wall made its first appearance on December 27th. This is to encourage passengers to stick to their New Year's resolution.

• Staff is helping to facilitate smooth travels for the Nevada Wolf Pack Men's Basketball team, as the top ten ranked team in the nation makes their way through RNO. Staff coordinates the Wolf Pack departures with airline and TSA personnel to make it easy on the team.

• Staff is preparing to welcome the Safari Club International, with over 20,000 attendees expected to travel through RNO the second week of January. Air Service is giving lift to this important convention with 7,962 departing seats on the busiest day for outbound SCI travel, Sunday January 13th. This is a 17% increase from last year, Sunday, January 14, 2018; and a 39% increase from Sunday, January 27, 2013, the last time SCI was in Reno. In addition, RTAA is partnering with the RSCVA on welcome signage and a welcome table staffed by RSCVA and the airport. The Kindness Takes Flight team will also pass out Tahoe Trail Bars and smiles during the peak arrival day Tuesday, January 8, from 9:30AM-11:30AM.

• RTAA's Partner in Education, Swope Middle School held their annual canned food drive with school children and airport employees both donating non-perishable food items. All the food was collected and sorted by Swope, then delivered by airport employee "elves" taking the boxes of food to families identified by Swope as in need of extra support this Christmas season.

• The airport greeted passengers with holiday music in the terminal during the week before Christmas with carolers from the Reno Philharmonic Chorus, barbershop style tunes from the Silver Dollar


Chorus, and songs of the season played on the piano from Guinness Book World Record holder Squeek Steele.

• In keeping with annual tradition, airport public relations staff delivered lunch to the local print, television and radio stations to build good will and happy bellies this busy holiday season.

• Staff conducted numerous news media interviews regarding holiday travel tips, a busy cargo operation with holiday packages arriving and departing, and California Pacific Airlines.

• Master Plan Acceptance and Airport Layout Plan Approval In December, the Federal Aviation Administration (FAA) notified Planning staff that the Airport Layout Plan (ALP), updated as part of the recent Master Plan effort, was approved pending final signatures. On December 17, RTAA-signed hardcopies of the ALP were delivered to the FAA for signature and foillial approval. FAA signature of the ALP constitutes approval of the ALP and acceptance of the Master Plan. Barring delays associated with the current federal government shutdown, staff anticipates ALP signature and formal approval in early January 2019.

In advance of FAA acceptance, Mead & Hunt, the Master Plan consultant, is updating the draft chapters for finalization.

• Nevada Department of Transportation Spaghetti Bowl Project On November 8, the Nevada Department of Transportation (NDOT) released the Draft Environmental Impact Statement (EIS) for the Spaghetti Bowl Project. A final public hearing was held on December 12 at the Reno-Sparks Convention Center. Two separate presentations were provided by the NDOT project team and RTAA Executive Staff and Trustees provided public testimony in support of retaining a direct-connect southbound off-ramp from 1-580 into the airport as part of the preferred alternative. Public comment on the project will be accepted through 5:00 PM January 15, 2019. Additionally, staff has continued to meet with local agencies and elected officials regarding keeping the southbound airport off-ramp. More information on those meetings can be found later in this document.

• Airport Noise and Operations Monitoring System Staff released a faunal Request for Proposals (RFP) on November 30 for maintenance and support services for the Airport Noise and Operations Monitoring System (ANOMS). Vendors may propose to either 1) maintain and support the existing equipment or 2) maintain and support upgraded equipment. Costs associated with each proposal will be taken into account during the evaluation process.

Proposals are due on January 16, 2019. A selection committee will convene the following week to select the preferred proposal or identify a short list of vendors for interviews. If needed, interviews will be held the final week of January.

Maintenance services and support for the ANOMS has been provided by Bruel & Kjaer EMS, Inc. (B+K) since 2010. B+K is currently providing maintenance under a month-to-month agreement.

o Staff anticipates bringing the results of the RFP process to the RTAA Board of Trustees for consideration in March 2019.


• Geographic Information System (GIS) Training In collaboration with Human Resources, Planning staff developed an organization-wide training program with the goal of increasing understanding and use of the Airport Authority Geographic Information System (GIS) and applications. Ad hoc and personalized training is also available. In December, a total of eight (8) GIS classes were taught. To date, a total of thirty-five (35) classes have been taught in FY18-19.

Class Name December FY 18-19 Data Viewer 1 4 Leasehold & Property Management 1 8 Signage & Marking 1 4 Airspace 1 5 eDocs 1 3 Mobile Data Collection 3 11 Total Classes 8 35

• Aircraft Rescue and Firefighting Facility (ARFF) Solar System The 135-kilowatt solar system installed at the Airport Authority's Aircraft Rescue and Firefighting Facility (ARFF) has been 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 $3,986 in electrical costs have been saved as a result of the solar system during FY18-19.

Power Generation November 2018 FY 18-19

Energy Offset from Monthly Bill $831 $3,986

Energy Credits Banked $0 $0

Banked Credits Applied $0 ($0)

Total Earned $831 $3,986

Banked Credits Remaining NA $0

• Recycling at Reno-Tahoe International Airport Airport Authority staff successfully collected approximately 10.28 tons of recyclable material during FY18-19. These recyclables equate to a 9.09 percent diversion rate of the airport's total waste volume. The annual recycling objective is 15 percent.

The annual recycling objective is met by a staff-initiated program to collect commingled (single-stream) recyclables at select teiminal and concourse locations. The single-stream collection includes all plastics, aluminum cans, glass, mixed paper, and cardboard. This recycling initiative helps improve the Airport Authority's recycling and waste diversion efforts, assists the airlines with single-stream recycling programs, and reduces hauling and recycling costs. Recyclables, including paper, cardboard, and batteries, continue to be collected separately.

Cardboard 5.39 33.71 Mixed Paper 0 0 Single-Stream Recyclables (Plastics, Glass, Cans, Paper, etc.)

4.76 9.39

Batteries 0.12 0.94 Total 10.27 44.04


Quarterly Strategic Plan Update Next Quarterly Strategic Plan Update — January 2019 Report

Legislative/Government Affairs Update The month of December was overshadowed by a few turbulent events on Capitol Hill: the adjournment — or so far the lack thereof — of the 115th Congress, the expiration of government funding for a significant part of the government (including the Department of Transportation), and the death of former President George H.W. Bush. Each of these played a role in December turning out to be quite a dysfunctional month, although the Congress and the Administration did most of the work in creating such an environment.

On December 7th, Congress extended a continuing resolution until the 21St to give themselves more time to agree on a longer-term funding bill for much of the federal government. The 215t came and went without any plan to provide money for a significant chunk of the government, forcing some important departments and agencies like the Departments of Transportation (DOT), Homeland Security, Treasury, and State to furlough employees deemed "unessential". There have been a number of proposed solutions to the impasse but so far, President Trump has refused to move away from his demand for $5 billion for a border wall with Mexico and Democrats have refused to provide votes in the House or Senate for any bill that includes that wall funding. With the 116t1i Congress convening on January 311 and Democrats becoming the majority party in the House of Representatives, there does not seem to be any resolution on the horizon. Porter Group will continue to send timely updates to the RTAA as this situation continues to develop.

Beyond the funding situation, there are a few other things that happened in December that we wanted to highlight for this month's report:

• On December 4th, Transportation Security Administrator David Pekoske publicly released the agency's first ever Cybersecurity Roadmap during a speech at the 18th Annual American Association of Airport Executives Aviation Security Summit. The report will help the agency safeguard the increasing amount of biometric data the agency is collecting from passengers.

The roadmap identifies four major priorities that will help the agency achieve its cybersecurity goals:

o Identify cyber security risks; o Reduce vulnerabilities to our systems and critical infrastructure across the transportation

systems sector; o Mitigate consequences if and when incidents do occur; and o Strengthen security and ensure the resilience of the system

The roadmap lays out a plan to increase the agency's cyber defense capabilities from 2018 to 2026 and it will work in conjunction with the Department of Homeland Security's cybersecurity strategy released earlier this year. Cyber threats that could put air traffic control systems at risk or steal passenger information have become a growing concern in the eyes of the agency and lawmakers. In September, Rep. John Katko (R-N.Y.), chairman of the House Homeland Security Transportation and Protective Security Subcommittee, called for new legislation that would set a baseline for cyber protections at airports. With Mr. Katko moving into the minority in 2019, it is unclear whether the House will pursue such legislation, but we will continue monitoring the situation and keep the RTAA updated on this issue.


• On December 21st, the DOT announced that it is soliciting applications and nominations for membership on two federal advisory committees on air travel: the Air Carrier Access Act Advisory Committee (ACAA Advisory Committee) and the Air Ambulance and Patient Billing Advisory Committee (AAPB Advisory Committee). These committees are mandated by the FAA Reauthorization Act of 2018.

The ACAA Advisory Committee will assess barriers to accessible air travel, determine the extent to which DOT is addressing the barriers, recommend improvements, and advise the Secretary on implementing the Air Carrier Access Act.

The AAPB Advisory Committee will review options to improve the disclosure of charges and fees for air medical services, better inform consumers of insurance options for such services, and protect consumers from balance billing. Following this review, the AAPB Advisory Committee will make recommendations with respect to three general air-ambulance-related areas: (1) the disclosure of charges and fees for air medical services as well as related insurance coverage; (2) the consumer protection and enforcement authorities of the Department of Transportation and state authorities; and (3) the balance billing practices of providers of air medical services.

The DOT will select individuals based on representativeness, expertise, balance, and willingness to participate fully. If anyone from the RTAA is interested in being considered for either panel, please let Porter Group know and we can get additional information. Applications and nominations must be received by January 15, 2019.

• DOT also is asking to hear from people who are interested in serving on the FAA's Drone Advisory Committee. RTAA's own Marily Mora currently serves on this Committee and new nominations are due on January 9th by 6 am ET.

• Some Committee Chairmanships and Ranking Memberships have been announced for the House and Senate Transportation Committees. They are:

o House Transportation Committee- • Chairman Peter DeFazio (D-OR) Likely, not yet announced

• Majority staff director for the Aviation Subcommittee is Rachel Devine. • Ranking Member Sam Graves (R-MO)

• Minority staff director for the Aviation Subcommittee is Paul Sass

o Senate Transportation Committee • Chairman Roger Wicker (R-MS) Likely, not yet announced • Ranking Member Maria Cantwell (D-WA)

(Note: Currently, both Sen. Heller and Sen. Cortez Masto serve on the Senate Transportation Committee. Next year, Sen. Cortez Masto will give up her seat on this Committee to join the Finance Committee. To ensure Nevada still has a voice on this panel, incoming Sen. Rosen has told us she plans to be on the Senate Transportation Committee.)


Presentations

• The Board Chairwoman and Executive Staff met with the following State Elected Officials to discuss NDOT's construction plan and the RTAA's legislative platform for the upcoming session:

o Governor-Elect Steve Sisolak o Senator Julia Ratti o Senator Ben Kieckhefer o Senator James Settelmeyer o Lt. Governor-Elect Kate Marshall o Assembly Member Sarah Peters o Assembly Member Teresa Benitez-Thompson o Assembly Member Jill Tolles o Assembly Member Al Kramer o Assembly Member Alexis Hansen o Assembly Member Lisa Krasner o Assembly Member Skip Daly o Assembly Member Mike Sprinkle

• Executive Staff also gave presentations regarding NDOT's construction plan at the following civic organizations:

o Economic Development Authority of Western Nevada (EDAWN) o The Reno-Sparks Chamber of Commerce o Reno-Sparks Convention and Visitors Authority (RSCVA) o Tahoe Douglas Visitors Authority (TDVA) o Lake Tahoe Visitors Authority (LTVA)

• Executive Staff also gave a presentation regarding NDOT's construction plan to RNO Station Managers and Tenants.