board of trustees president/ceo andy wirth, vice ......board of trustees president/ceo rick murdock,...

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

RENO-TAHOE AIRPORT AUTHORITY

MEETING OF THE BOARD OF TRUSTEES January 12, 2017

9:00 a.m. Board Room, Administrative Offices

Second Floor, Main Terminal Building Reno-Tahoe International Airport

Reno, Nevada

Items 5, 6, 8, 9, and 12 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. PRESENTATIONS AND AWARDS

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

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

5. APPROVAL OF MINUTES – December 8, 2016 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

Board of Trustees Meeting Agenda January 12, 2017 of 3

g. Air Service Liaison h. The Chamber Reno Sparks Northern Nevada Liaison i. Reno-Tahoe International Airport Users Committee j. Nevada Legislative Priorities Committee

8. CONSENT ITEMS FOR BOARD ACTION

a. #17(01)-01 Adoption of Resolution No. 531: A Resolution Rescinding Resolution No. 431 to

Establish an Amended Lost and Found Program for the Reno-Tahoe Airport Authority

b. #17(01)-02 Adoption of Resolution No. 532: A Resolution Rescinding Resolution No. 461 to Establish an Amended Travel Policy for the Reno-Tahoe Airport Authority

9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION

a. #17(01)-03 Approval of One New Member to the Reno-Tahoe Airport Authority Community

Outreach Committee

b. #17(01)-04 Approval of an Action Item to Establish the Process for Updating the Reno-Tahoe Airport Authority Fiscal Year 2014-2018 Comprehensive Strategic Plan

10. ITEMS FOR BOARD INFORMATION AND DISCUSSION a. Presentations

i. State Legislative Update ii. Federal Legislative Update

b. Upcoming Meetings / RTAA Event Schedule

i. Board / Committee Meetings 1. January 19, 2017 5:30 pm Community Outreach Committee Meeting 2. January 25, 2017 3:30 pm Nevada Legislative Priorities Committee Meeting 3. February 6, 2017 4:30 pm RTIA Users Committee Meeting 4. February 7, 2017 9:00 am Finance and Business Development Committee Meeting 5. February 7, 2017 10:00 am Planning and Construction Committee Meeting 6. February 9, 2017 9:00 am Board of Trustees Meeting 7. March 7, 2017 9:00 am Finance and Business Development Committee Meeting 8. March 7, 2017 10:00 am Planning and Construction Committee Meeting 9. March 9, 2017 9:00 am Board of Trustees Meeting 10. March 16, 2017 3:30 pm Airport Noise Advisory Panel Meeting 11. March 16, 2017 5:30 pm Community Outreach Committee Meeting

ii. RTAA Events

1. January 31, 2017 9:00 am FAA Drone Advisory Committee Meeting

c. President/CEO’s Report d. General Board Comments, Questions, and Items for Future Board Meetings

Board of Trustees Meeting Agenda January 12, 2017 of 3 11. PUBLIC COMMENT, if any – Limited to Three Minutes per Person 12. ADJOURNMENT

Items will not necessarily be considered in the sequence listed. This meeting may be continued if all of the items are not covered in the time allowed. If the meeting is to be continued, the time and place will be announced at the end of the portion of the meeting to be continued. SUPPORTING MATERIAL: The designated contact to obtain supporting material is Claire Johnson, Clerk of the Board, P.O. Box 12490, Reno, NV, 89510 or 775-328-6410. Supporting material is also available at the Reno-Tahoe Airport (Administrative Offices) and at the scheduled meeting. Members of the public who are disabled and require special accommodations or assistance at the meeting are requested to notify the Clerk of the Board in writing at P.O. Box 12490, Reno, Nevada 89510 or by calling (775) 328-6410 prior to the meeting date. THIS AGENDA HAS BEEN POSTED AT THE FOLLOWING LOCATIONS: 1. Airport Authority Administrative Offices – 2001 E. Plumb Lane, Reno 3. Reno City Hall – One East First Street, Reno 2. Washoe County Administrative Offices – 1001 E. 9th Street, Reno 4. Sparks City Hall – 431 Prater Way, Sparks

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

regularly scheduled meeting. ***

RENO-TAHOE AIRPORT AUTHORITY BRIEF OF MINUTES

MEETING OF THE BOARD OF TRUSTEES December 8, 2016

9:00 a.m.

MEMBERS PRESENT ALSO PRESENT Rick Murdock, Chair Marily M. Mora, A.A.E. Andy Wirth, Vice Chair President/CEO Jessica Sferrazza, Secretary Dean Schultz, A.A.E. Lisa Gianoli, Treasurer Executive Vice President/COO Bill Eck Ann Morgan Jerry Hall General Counsel Adam Mayberry Claire Johnson Jenifer Rose Clerk of the Board MEMBERS ABSENT/EXCUSED Nat Carasali The Board of Trustees met in the Board Room, Airport Authority Administrative Offices, Reno-Tahoe International Airport, Reno, Nevada. Chairman Rick Murdock called the meeting to order. The Pledge of Allegiance was recited and roll was called.

3. PRESENTATIONS AND AWARDS

a. Employee, Tenant and Special Recognition Brian Moore, Human Resources Director, announced the recipients of the THRIVE Most VALUE-able Player awards for 2016. Each of these employees was nominated by their co-workers and chosen because they represent the organizational values through their daily activities and attitudes, and especially exude the qualities represented by the specific THRIVE value for which they were selected. Mr. Moore recognized the following award recipients: the Stead/UAS Team, including Mike Dikun, Patti Edgington, Ed Martin, Todd Meckler, Rich Prior, Mario Garcia, Anthony Miranda, Kim Matthews and Scott Gordon - Teamwork for Results; Cindy Riddell, Executive Assistant - Honesty and Integrity; Gary Probert, Senior Airport Project Manager - Respect & Recognition; Jessica Wynia, Custodian - Inspire & Innovate; Chrissy Gonzales, Operations Specialist - Versatility; and, Laurie Weeks, Senior Manager of Properties - Enthusiasm for Excellence. Next, Marily Mora, President/CEO, announced that the recipient of the 2016 President’s Award is Loretta McNabb, Facilities Project Manager in the Facilities & Maintenance department. The President’s Award recipient is someone who “lives the values” – all six of them – in their daily

Meeting of the Board of Trustees December 8, 2016 Brief of Minutes Page 2 of 11

work life. Ms. Mora congratulated Ms. McNabb on the well-deserved recognition. Ms. McNabb expressed thanks to those who nominated her for this award. Each of the award recipients was recognized and presented with their award at the RTAA Holiday Party held on Saturday, December 3, 2016. Next, Chair Murdock introduced Rick Gorman, Chief Financial Officer, who asked Tony Osendorf, Manager of Finance & Budgeting, and Alex Kovacs, Senior Financial Analyst, to join him at the podium. Mr. Gorman stated he is proud to announce that the Reno-Tahoe Airport Authority (RTAA) has received the Distinguished Budget Presentation Award for our Fiscal Year 2016/2017 budget. This is the 20th consecutive year that the RTAA has received this award, which is presented from the Government Finance Officers Association, (GFOA). It represents the highest form of recognition in governmental budgeting, and is a significant achievement by the organization. While this award represents the collective efforts of every department at the RTAA, the Finance and Budget department is responsible for coordinating this effort, consolidating each department’s submission, and preparing the budget book and Board presentations. Mr. Gorman presented the award to Mr. Osendorf and Mr. Kovacs, who accepted it on behalf of the Finance and Budget Department.

b. Introduction of New, Promoted and Retired Employees Dean Schultz, Executive VP/COO, introduced two new employees - Peter Dunbar, who was hired as an Airport Police Officer on September 12, 2016, and Nic Hasler, who joined the organization as a Network Administrator II in the Technology & Information Systems department effective November 21, 2016. Mr. Schultz welcomed the new employees to the Airport Authority.

c. Tenant Communication None.

Trustee Hall commented favorably on the THRIVE program and the contributions made by the award recipients, and stated how valuable a program such as TRHIVE is to the culture of the organization. Trustee Mayberry also commented on the program and congratulated the award recipients. Ms. Mora thanked the Trustees for their acknowledgement of the internal efforts and stated that it has been a great year with the THRIVE Values program, as well as the Culture Club, which is made up of five different committees. She said that a lot of the employees are joining the committees and getting to know each other across departments, as well as getting the opportunity to take on leadership roles. Chair Murdock expressed how proud the Trustees are of the Airport, the employees, and the management team, and that each and every person is important. He stated that the Airport is a model of a well-run machine in this community and he thanked his fellow Trustees and the employees.

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

Meeting of the Board of Trustees December 8, 2016 Brief of Minutes Page 3 of 11 5. APPROVAL OF MINUTES

On motion by Trustee Gianoli, seconded by Trustee Rose, which motion duly carried by unanimous vote, the Board approved the minutes from the Board of Trustees meeting of November 10, 2016.

6. APPROVAL OF AGENDA

On motion by Trustee Sferrazza, seconded by Trustee Wirth, which motion duly carried by unanimous vote, the Board approved the December 8, 2016 Board of Trustees meeting agenda.

7. COMMITTEE / LIAISON REPORTS

Committee / Liaison reports were given by: a. Finance and Business Development Committee – Trustee Lisa Gianoli b. Planning and Construction Committee – Trustee Jenifer Rose c. Airport Noise Advisory Panel (ANAP) – Trustee Jessica Sferrazza d. Community Outreach Committee (COC) – Trustee Jessica Sferrazza e. Stead Liaison – Trustee Bill Eck f. RSCVA Board – Chair Rick Murdock g. Air Service Liaison – Chair Rick Murdock h. The Chamber Reno Sparks Northern NV – CEO Marily Mora i. Reno-Tahoe International Airport Users Committee – Trustee Adam Mayberry j. Compensation Committee – Trustee Andy Wirth k. Nevada Legislative Priorities Committee – Trustee Lisa Gianoli

8. CONSENT ITEMS FOR BOARD ACTION

a. #16(12)-40 Authorization for the President/CEO to Negotiate Final Terms and Execute a New 6-Year Commercial Lease Agreement Between RDW Automotive and the Reno-Tahoe Airport Authority for 13,540 Square Feet of Commercial Space at the Commercial Building Located at 1186 Telegraph Street On motion by Trustee Wirth, seconded by Trustee Hall, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-40 as follows:

Authorized the President/CEO to Negotiate Final Terms and Execute a New 6-Year Commercial Lease Agreement Between RDW Automotive and the Reno-Tahoe Airport Authority for 13,540 Square Feet of Commercial Space at the Commercial Building Located at 1186 Telegraph Street.

b. #16(12)-41 Authorization for the President/CEO to Execute a Professional Services Agreement for 2017 Annual Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $46,000

On motion by Trustee Wirth, seconded by Trustee Hall, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-41 as follows: Authorized the President/CEO to Execute a Professional Services Agreement for 2017 Annual Construction Management Services for the Airport Capital Improvement Plan at Reno-Tahoe


International Airport and Reno-Stead Airport, with Atkins North America, in the Amount of $46,000

9. ITEMS FOR BOARD INFORMATION, DISCUSSION AND POSSIBLE ACTION

a. #16(12)-42 Authorization for the President/CEO to Negotiate Final Terms and Execute an Exclusive Master Development Agreement with DP RTA Stead, LLC to Serve as the Exclusive Master Real Estate Developer at the Reno-Stead Airport, and Negotiate Final Terms and Execute a 50-Year Phase 1 Ground Lease with DP RTA Stead, LLC or Its Nominee at the Reno-Stead Airport

On motion by Trustee Hall, seconded by Trustee Wirth, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-42 as follows: Authorized the President/CEO to Negotiate Final Terms and Execute an Exclusive Master Development Agreement with DP RTA Stead, LLC to Serve as the Exclusive Master Real Estate Developer at the Reno-Stead Airport, and Negotiate Final Terms and Execute a 50-Year Phase 1 Ground Lease with DP RTA Stead, LLC or Its Nominee at the Reno-Stead Airport. Ms. Mora thanked the Board for encouraging staff to find a way to make the master development agreement with Dermody Properties work and stated that today’s approval is a major milestone for the Airport Authority. Ms. Mora acknowledged Tina Iftiger, VP of Airport Economic Development, for her expertise and tenacity for getting the project approved. Ms. Mora also acknowledged Ann Morgan, General Counsel, for her role on the team in bringing the item forward. Lastly, Ms. Mora thanked Michael Dermody, Chairman & CEO of Dermody Properties, for his interest in making sure the agreement was brought to this point, and John Griffin of the Griffin Company, who also helped bring the item forward. Trustee Jessica Sferrazza disclosed that her company, Jessconv, LLC, had previously done work for Dermody Properties in early 2015. Trustee Sferrazza stated that neither she nor her company have any financial relationship with Mr. Dermody or his companies at this time. Trustee Jenifer Rose disclosed that Dermody Properties does a small amount of business with her company, It’s My Community Store, and per advice of General Counsel, she did participate in the vote on this agenda item. Trustee Adam Mayberry thanked Chair Murdock for bringing this item forward for approval. He stated that this development will be one of the most important votes taken by the Board for this community. Chair Murdock summarized by saying that the Airport is a cog in the economic wheel for the region. He also stated his delight in having a local developer heading up this project. Trustee Sferrazza referred to the infrastructure component and asked if it will be part of the support for different pieces of legislation to be recommended by the Legislative Committee. Trustee Lisa Gianoli, Chair of the Legislative Committee, responded yes, that in January or February when the Committee has a better picture of the bill drafts, the Committee will work with Josh Hicks, RTAA Lobbyist, to put a support document together.


b. #16(12)-43 Adoption of Resolution No. 530: A Resolution Rescinding Resolution No. 510, to Set the New Commercial General Aviation Minimum Standards for the Provision of Commercial General Aviation Services at Reno-Tahoe International Airport

Ms. Morgan opened this item by stating she had nothing further to submit other than asking the Board to approve this item. She pointed out to Trustee Mayberry that the General Aviation Minimum Standards (GAMS) document was amended to include the requested language in the preamble. Trustee Mayberry thanked Ms. Mora and complimented her for responding to the General Aviation (GA) community and helping to create a level playing field. He also thanked staff for their tireless efforts in completing the new GAMS. On motion by Trustee Mayberry, seconded by Trustee Rose, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-43 as follows: Adopted Resolution No. 530: A Resolution Rescinding Resolution No. 510, to Set the New Commercial General Aviation Minimum Standards for the Provision of Commercial General Aviation Services at Reno-Tahoe International Airport. Trustee Sferrazza recognized Trustee Mayberry’s efforts with the GA community. Ms. Mora thanked the Trustees for acknowledging staff and Trustee Mayberry for engaging with the GA Community to get this accomplished. She also thanked Ms. Morgan for her involvement and recommending best practices learned from Tulsa International Airport.

c. #16(12)-44 Approval of Passenger Facility Charge (PFC) Application 17-13-C-00-RNO, in the Amount of $16,222,817, to Construct/Acquire Various Capital Assets for the Reno-Tahoe International Airport

On motion by Trustee Sferrazza, seconded by Trustee Hall, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-44 as follows: Approved Passenger Facility Charge (PFC) Application 17-13-C-00-RNO, in the Amount of $16,222,817, to Construct/Acquire Various Capital Assets for the Reno-Tahoe International Airport.

d. #16(12)-45 Acceptance of the Comprehensive Annual Financial Report for Fiscal Year 2015/2016 Rick Gorman, Chief Financial Officer, acknowledged Scott Nickerson, a Partner with Crowe Horwath, the RTAA’s independent auditor, as being present in the audience. He stated that Crowe Horwath is currently under a 5-year contract with the RTAA, which is now in the 3rd year and has 2 years remaining with an option to extend if both parties agree to do that. Mr. Gorman noted that the Nevada Revised Statutes (NRS) requires the RTAA to have an annual external audit, and that as part of that effort, the governing board is responsible for accepting the audit. Because the RTAA accepts federal grants and participates in the Passenger Facility


Charge (PFC) program, the RTAA is required to have an audit of its compliance with both the Airport Improvement Program (AIP) and the PFC program as part of the audit. Mr. Gorman continued saying that Crowe Horwath did an extensive audit of the financial statements and accompanying footnotes. He stated with pride that the auditor concluded the financial statements do fairly represent the financial condition of the Airport Authority. In addition, as part of their work, Crowe Horwath focused on internal controls of the Airport’s operations and federal grant programs, and Mr. Gorman stated that no material deficiencies were found in the RTAA’s internal controls. Furthermore, sometimes the auditors will make recommendations of best practices and other items the Airport Authority should consider. In the past, there have been some best practices recommended, but for this audit there were no additional ones made. Mr. Gorman recognized the Accounting staff and the Grant Administration staff in Engineering for their great work. Mr. Gorman presented the Comprehensive Annual Financial Report for the Airport Authority for Fiscal Year (FY) 2015/2016, which covers the period of July 1, 2015 through June 30, 2016. He reviewed the financial results for FY 2015/2016, including operating expenses and net operating revenues. Overall, there was a decrease in the RTAA’s net position; net position represents the assets the Airport Authority owns, less what is owed to other people. In summary, Mr. Gorman said the RTAA is in a really strong financial position. Trustee Andy Wirth asked if the 3.6% change on interest and non-operating expense is predominately interest expense. Mr. Gorman responded yes, that it is a result of having refinanced debt last year. Mr. Gorman pointed out that the RTAA’s cost per enplaned passenger is $6.56. Mr. Gorman reminded Trustees that in the last two years, the governmental accounting standards board issued new reporting requirements associated with the pension obligations related to the public employees’ retirement system (PERS). As part of that, the RTAA is required to recognize a net pension liability associated with its obligations to the pension plan. As of June 30, 2016, PERS had an unfunded liability of $11.5B for the entire system. The RTAA’s proportionate share of the unfunded liability is $32.6M or 0.3% of the total system’s underfunding. Therefore, the RTAA has booked a liability on its balance sheet showing an obligation to fund $32.6M of future pension obligations based on present value. Trustee Jerry Hall asked for clarification as to whether the total days cash on hand reflects the $32.6M pension liability. Mr. Gorman responded that no it does not. In addition to having to report the net pension liability, Mr. Gorman said there is a new classification for deferred inflows and outflows of resources. Mr. Gorman explained how the pension liability, and the deferred inflows and outflows affect the RTAA’s balance sheet and income statement. Mr. Gorman also discussed the RTAA’s personnel expenses as related to PERS. He mentioned that PERS has looked at the contribution rates for the next two years, and the recommendation being made to the State Legislature is to not make any changes, keeping the contribution rates of 28% for regular employees and 40% for law enforcement and fire employees. Mr. Gorman continued by discussing how much of the RTAA’s assets are tied up in runways and taxiways, saying that the Airport is a very capital intensive operation. As far as cash is


concerned, Mr. Gorman stated that the RTAA has $46M in unrestricted cash and $20M of restricted cash, and that restricted cash is the funds committed to a particular purpose. Overall, the RTAA’s number of days of cash on hand at the end of the fiscal year was 452 days, which is consistent with the industry trend across the country. He stated that the Airport is starting to recover and rebound from the recession. Mr. Gorman ended by reviewing the balance sheet including the assets and deferred outflow of resources, followed by the liabilities, deferred inflows and net position. Trustee Wirth commended Mr. Gorman and his staff on a fantastic job of solid reporting and the clean audit. Trustee Gianoli echoed Trustee Wirth’s remarks. Trustee Hall asked if the PERS unfunded liability amount is increasing each year or is it a static number. Mr. Gorman responded that in looking at the past 1-2 years, it actually has decreased, and that the PERS funding of the liability went from approximately 67 to 74%. Mr. Gorman said this is reflective of the positive investment earnings of the plan. Trustee Hall asked whether the reason the Airport Authority is in the PERS system is a carryover from the days when the Airport was run by the City of Reno. Ms. Morgan responded that the enabling legislation that created the Airport Authority specifically required the RTAA to be in the PERS system and that it was part of the negotiation when the bill was passed. Trustee Mayberry asked what can be done about the pension liability. Mr. Gorman responded that ultimately it is incumbent upon the Public Employee Retirement System to manage that funding and the obligations it has versus the investments. He said in his opinion, they’ve done a good job of investing monies well and keeping expenses low. The challenge is if the contribution rates are increased, all local governments and their budgets will be impacted. Mr. Gorman asserted that PERS has an interesting challenge of how they manage not to burden the local governments and their ability to do their jobs versus getting the funding gap closed. Trustee Mayberry asked if he was correct in saying that all local governments in the State are subject to this reporting requirement. Mr. Gorman confirmed that and indicated that a report came out in June that reflects the allocation of the liability for each entity. Trustee Sferrazza asked if the cash on hand is still 452 days. Mr. Gorman responded that yes it is. Trustee Sferrazza asked about the contract with Crowe Horwath and whether the RTAA will go back out at the end of the 5 years. Mr. Gorman responded yes, however there is an option to extend the contract if there is mutual agreement to do so, but the 5-year term is what the RTAA is contractually obligated to at this time. Trustee Sferrazza commended staff for having an audit without any management findings. Mr. Nickerson asked to speak and commented that he works with a variety of airports across the country. He added that discussions are held with RTAA staff about what the trends are across the different airport authorities and opportunities that management has to continue to stay on top of issues. Some of the items discussed include continuing the use of an internal audit function for revenue recovery, the risks associated with information technology and cyber security, the concept of enterprise risk management, the concept of cost allocation and making sure there is a true understanding of the cost of the operations, looking at zero based budgeting which the RTAA is already doing, and continuing to manage debt. Mr. Nickerson said that it is obvious from looking at the CAFR that the RTAA’s debt position is very low relative to other airport


authorities. Although the RTAA has no big internal control issues or compliance issues, Crowe Horwath does hold discussions with staff about operational and business issues and ways to improve the organization. These items are not placed in a written document, but are part of a dialogue that occurs throughout the year. Chair Murdock commented that when staff saw the economy slipping and did a defeasance, it was part of the whole process of keeping the balance sheets so strong. Mr. Gorman agreed and commented regarding the cash on hand. He said the RTAA’s cash position did allow us to pay down the debt and absorb a portion of the revenue sharing with the airlines. Over a 10 year period, the flexibility and ability to deal with the recession was a result of the fact that the RTAA had a strong cash position, which enabled us to deal with the issues without having to take some of the draconian measures that other government agencies were forced to take. Trustee Hall added comments about the RTAA’s debt position and compared it to the issues that the Reno-Sparks Visitors and Convention Authority (RSCVA) has had. He commended the RSCVA’s most recent measures to deal with their debt issue. Trustee Hall said the way RTAA staff has managed the debt has placed the organization in a really good fiscal position. Trustee Hall added that the selection process for both the external audit and insurance broker functions which ended in the RTAA contracting with large, national firms, brings a different perspective than what a local firm might bring. In his opinion, Trustee Hall said this resulted in the RTAA getting better coverage and services at a more reasonable price. On motion by Trustee Wirth, seconded by Trustee Gianoli, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-45 as follows: Accepted the Comprehensive Annual Financial Report for Fiscal Year 2015/2016.

e. #16(12)-46 Review and Discussion of President/CEO Marily Mora’s Performance for Fiscal Year 2015/2016 and Possible Action on Discretionary Bonus and Salary Adjustment for Fiscal Year 2015/2016

Trustee Wirth, Chair of the Compensation Committee, opened the discussion by commenting on the process the Committee followed during its review of CEO Mora’s performance for FY 2015/2016. He outlined the parameters of the bonus and salary adjustment Ms. Mora is eligible to receive based on her contract and performance, and what the Committee is unanimously recommending today. Trustees Gianoli and Rose both stated they feel comfortable with the discussion and decisions of the Committee. Trustee Sferrazza asked where a 5% increase brings Ms. Mora to in the salary range as compared with CEOs of other Airports. Trustee Wirth responded that when the compensation comparison was done in July 2016, Ms. Mora’s salary was in the bottom of the 3rd quartile or slightly above the mean for CEO salaries of like airports. Trustee Wirth reminded the Board that a firm was contracted to do further vetting in terms of such components as cost of living, PERS contributions, etc. Assuming that other CEOs also received compensation adjustments based on high performance, it would mean the position in the range is relatively the same, but Trustee Wirth said he could not confirm that.


Trustee Sferrazza asked how long Ms. Mora’s current contract is in effect. Ms. Morgan responded that the CEO’s contract goes through June of 2018. Trustee Sferrazza reaffirmed that the Board would have the opportunity again at that time to compare the salary range with other airports. Trustee Wirth stated that though it is an expense to the organization, the Board always has that discretion. Trustee Sferrazza further commented that she believes Ms. Mora has done an amazing job during her time on the Board over the last 1½ years, and that she agrees with the Compensation Committee’s action on the performance goals and measurements, and that Ms. Mora met the goals. She said the fact that Ms. Mora is on the national Drone Advisory Committee (DAC), and who she is serving with as a member of that committee, speaks volumes. Trustee Sferrazza said that as a member of the community, many people vocalize what the Airport is doing, and that Ms. Mora is the captain of this great team. She said that though she does not agree with awarding bonuses, there is no denying that Ms. Mora has done a very good job. She offered her support of the Committee’s recommendation as presented. Trustee Mayberry thanked the Comp Committee for doing their due diligence and that the recommended salary adjustment is very appropriate, as is the bonus which is discretionary, but when the goals are met it should be binding. Trustee Mayberry congratulated Ms. Mora for a job well done and expressed his appreciation of her leadership. Trustee Wirth added that Brian Moore, Director of Human Resources, was at the Compensation Committee meeting and participated in the discussion. The recommended performance increase of 5% on the base salary comports with the culture and practice of rewarding high performers in the organization as a whole. Trustee Rose added that last year the Compensation Committee asked how the bonus and salary increase compared with what other members of the executive staff received. It was reported in the Committee meeting that all executive staff received a bonus this year as well as a 5% salary increase. On motion by Trustee Wirth, seconded by Trustee Hall, which motion was duly carried by unanimous votes, the Board approved Agenda Item #16(12)-46 as follows: Approved a Discretionary Bonus in the amount of $38,438.40 based on President/CEO Marily Mora having met or exceeded 80% of the Performance Goals Set for Fiscal Year 2015/2016 and a Salary Increase of 5% in the amount of $12,012.00 for Ms. Mora for Fiscal Year 2015/2016. Ms. Mora thanked the Chairman and Trustees for awarding the bonus and the salary increase. She expressed her appreciation of the comments about the team and that she is fortunate to be able to come to work each day with a brilliant and talented leadership team, and added that the entire RTAA workforce is very dedicated to doing their best job.

10. ITEMS FOR BOARD INFORMATION AND DISCUSSION

a. Presentations i. None.

b. Upcoming Board Meeting/RTAA Event Schedule

Chair Murdock referred to the schedule of upcoming meetings and RTAA events.


i. Board/Committee Meetings 1. January 10, 2017 9:00 am Finance and Business Development Committee Meeting 2. January 10, 2017 10:00 am Planning and Construction Committee Meeting 3. January 12, 2017 9:00 am Board of Trustees Meeting 4. January 19, 2017 5:30 pm Community Outreach Committee Meeting 5. February 6, 2017 4:30 pm RTIA Users Committee Meeting 6. February 7, 2017 9:00 am Finance and Business Development Committee Meeting 7. February 7, 2017 10:00 am Planning and Construction Committee Meeting 8. February 9, 2017 9:00 am Board of Trustees Meeting

ii. RTAA Events

1. None.

c. President/CEO’s Report Ms. Mora referred the Trustees to the written President/CEO Report included in their Board binders and offered to answer any questions the Trustees may have about the information included. Ms. Mora pointed to an information sheet from the Porter Group about the substantial progress on the Customs and Border Protection (CBP) bill. The House passed the bill and all are hopeful that this gets done and that the President signs it. Ms. Mora reminded Trustees that even when the legislation is passed, the RTAA will have to apply for the reimbursable program; however, staff is hopeful that based on our efforts, the RTIA will be one of the airports that are picked for this opportunity. Trustee Wirth shared that he reached out to Congressman Porter to inquire as to the likelihood of the Senate passing the bill but has not heard back, and asked Ms. Mora if she had any insights on that. Ms. Mora said it is her understanding there is a good chance that it will be passed and that this is one issue that the whole Congressional delegation has come together on. Trustee Wirth added that he took the liberty of sending the communique to Senator Diane Feinstein asking for her support, and has already received confirmation from Senator Feinstein’s staff that they are on board. Chair Murdock thanked Trustee Wirth for engaging the California delegation on this issue.

d. General Board Comments, Questions, and Items for Future Board Meetings Chair Murdock asked if the Trustees had any comments, questions, or items for future Board meetings. Discussion was held about the current weather predictions of impending snow and that things are looking positive for the winter season. Chair Murdock said the bookings at hotels are starting to take off and that the new flight on Delta to Atlanta will help the Reno-Tahoe area. Trustee Wirth mentioned a video created by his team that promotes accessibility to the region, and offered to share it with the Board and the COC. Ms. Mora indicated that staff will be glad to send the video out. Chair Murdock said the community is getting so much better at communicating and promoting the region, and suggested that the RSCVA should send the video out worldwide. Trustee Hall commented on the elements of what led to the original termination of the master development agreement with Dermody Properties and the process that followed in order to resurrect the agreement and bring it forward for approval at today’s meeting. Trustee Hall also suggested that the monthly President/CEO’s report should have a primary focus on issues of


relevance to the scope of operations at the Airport and activities that have major consequence to the Airport and the Board. Trustee Hall said that in his opinion, the report contains too much information that can be found elsewhere in other reports or communications. He ended by saying it would be more appropriate for the report to focus on RTAA strategic goals and objectives. A discussion ensued regarding the process undertaken with regard to the master development agreement and the procedures that were followed. 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 10:49 am. ___________________________________ Chair Rick Murdock ATTEST: ___________________________________ Secretary Jessica Sferrazza

*** 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 4, 2017 Memo: # 17(01)-01 To: Chairman & Board Members For: January 12, 2017 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: ADOPTION OF RESOLUTION NO. 531: A RESOLUTION RESCINDING

RESOLUTION NO. 431 TO ESTABLISH AN AMENDED LOST AND FOUND PROGRAM FOR THE RENO-TAHOE AIRPORT AUTHORITY

STAFF RECOMMENDATION Staff recommends the Board adopt Resolution No. 531 which rescinds Resolution No. 431, to establish an amended Lost and Found Program for the Reno-Tahoe Airport Authority. PURPOSE This action is to obtain Board approval for the President/CEO to establish an amended Lost and Found Program for the Reno-Tahoe Airport Authority. This action is in support of the Reno-Tahoe Airport Authority (RTAA) Strategic Priority # 5 – Provide a Positive Environment and Experience for All, and the Guiding Principles of Customer Service and Professionalism and Ethics, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND On May 16, 2002, the Board of Trustees approved a written Lost and Found policy via Resolution No. 431, to set forth the terms and conditions for the return of lost items to their owners, or if no owners made claims for the items, to assure the proper disposal of the items. Because the specific procedures and disposing agencies are part of the resolution, changing it to comply with operational needs is cumbersome. Thus, the Resolution has been rewritten to more broadly identify the Board’s policy while allowing the RTAA the flexibility to update and amend the specific program as needed. DISCUSSION A large volume of lost items are turned in to RTAA to reunite them with their owners. In addition, effective September 1, 2014, the Transportation Security Administration (TSA) began turning lost items left at the checkpoint in to the RTAA. The policy is to return as many of those items to the proper owners as possible, however, many items are not claimed. Some of the lost items require special handling for security purposes. Some of the lost items cannot be stored. Further, the RTAA has limited time and resources to handle such unclaimed property. This Resolution No. 531 discusses how to deal with those items. Guidelines have been included to determine the custody and securing of the items in the RTAA’s control. If the items are not claimed, Resolution No. 531 provides a policy for disposing of those items and how long they will be retained prior to that disposal. Both the Resolution and updated Lost and Found Program are attached to this Board memo. FISCAL IMPACT There is no discernable fiscal impact.

Resolution No. 531, Lost and Found Program # 17(01)-01 January 12, 2017, Board Meeting Page 2 of 2

COMMITTEE COORDINATION This item is scheduled to be presented at the January 10, 2017 Finance and Business Development Committee meeting. RECOMMENDATION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board adopts Resolution No. 531 to establish an amended Lost and Found Program for the Reno-Tahoe Airport Authority effective January 12, 2017.” MM/pn/cj

RESOLUTION NO. 531 A RESOLUTION RESCINDING RESOLUTION NO. 431 AND ESTABLISHING AN

AMENDED LOST AND FOUND PROGRAM AT THE RENO-TAHOE INTERNATIONAL AIRPORT

WHEREAS, due to the volume of items surrendered to the Reno-Tahoe Airport Authority (RTAA), security concerns and the limited time and resources of the RTAA to handle unclaimed property, it is deemed necessary to establish a lost and found program to handle those items. This program will protect found items from theft or loss until returned to the rightful owner or disposed of according to policies and procedures set forth in this resolution; and

WHEREAS, the establishment of such a program is in the best interest of public service and will allow rightful owners to retrieve their property; and

WHEREAS, policies and procedures may change to comply with State and Federal law and operational requirements;

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the Reno-Tahoe Airport Authority that this Resolution authorizing the President/CEO to establish a Lost and Found Program for the Reno-Tahoe Airport Authority at the Reno-Tahoe International Airport, is hereby adopted as set forth below.

LOST AND FOUND PROGRAM POLICIES AND PROCEDURES

It is the policy of the RTAA that all “lost and found” items found by employees, tenants or the general public are to be turned in to the RTAA in accordance with then established procedures so that the RTAA can provide the owner of the “lost and found” item an opportunity to claim their item.

Lost and found items may not be taken, given, borrowed, or used for any purpose, business or personal. All items are either returned to their owner, disposed of or donated to local non-profit organizations. The local non-profit recipients of the lost and found items will be reviewed annually by the President/CEO or their designee, to make certain the items are serving the highest and best purpose.

It is the policy of the Airport Authority that the owner of an item is responsible for the cost of shipping if they do not retrieve the item in person.

If the item is not claimed in ninety (90) days, it must be disposed of in accordance with the then established policy and procedures.

On Motion by Trustee_____________, seconded Trustee_______________, the foregoing Resolution was passed and adopted this ______day of______________, 2017, by the following vote of the Board, to take effect on _________________.

AYES: ______________________________________________________________________

NAYS: ______________________________________________________________________

ABSENT: _______________________ ABSTAIN: _______________________________

______________________________ Chairman Rick Murdock

ATTEST: ________________________ Secretary Jessica Sferrazza

Reno-Tahoe Division Title and Policy Number Airport Authority Policy and Procedures Manual

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Lost and Found Policy Number 100-030 PURPOSE Because of the volume of Voluntarily Abandoned Property (VAP), the security concerns, and the limited time and resources of the Reno-Tahoe Airport Authority (RTAA) to handle unclaimed property, the RTAA Board of Trustees has decided that a program is needed to protect found items from theft or loss until returned to their owners or disposed of in accordance with the guidelines in this policy. AUTHORITY/ REFERENCE Board Resolution 531 set guidelines for the operation of a Lost and Found Program at Reno-Tahoe International Airport. POLICY All “lost and found items” (VAP) found by employees, tenants, or the general public are to be turned in to the RTAA Administration Receptionist (Lost and Found). The Transportation Security Administration (TSA) may also bring lost and found items to the Reception area. The RTAA will provide the owner of the lost property an opportunity to claim the item. Lost and Found items may not be taken, given, borrowed, or used for any purpose, business or personal. All items are either returned to their owner, disposed of, or donated to local non-profits in accordance with the RTAA procedures in this Policy. The owner of the lost and found item will be responsible for the return shipping costs if the item is not retrieved in person. PROCEDURES Lost or abandoned items may be turned in to the TSA Security Checkpoint, the RTAA Airport Police, Airport Security, a tenant, or the RTAA Administration Receptionist. The lost or abandoned items will be accumulated and recorded at the Administration Receptionist’s desk. The Administration Receptionist logs the items in and out on the Lost and Found log. The log includes: a description of the item; the date it was found; the manufacturer, model and serial number (if available); and the location where the item was found (if available).

The item is then tagged.


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The list will be available on the RTAA Intranet P: Drive to facilitate other departments, such as AirCom, answering questions when asked if an item has been found. Owners who make a claim for the lost and found item are required to provide a reasonable description of the item, the date the item was lost, and a form of identification from which the Receptionist can record their name and address. Owners who provide satisfactory information regarding ownership may have the item returned to them. A receipt for the returned item is completed by the owner. Address, phone numbers, or other identifying information attached to the item may be used by the Receptionist to notify the owner of the found item. Any items being shipped at the RTAA’s expense must be approved on a case by case basis by the VP of Marketing and Public Affairs, or their designee, since all the costs of the Lost and Found Program are borne by that department. Items of apparent high value, such as jewelry, are kept in a secure location until claimed, donated or disposed of in accordance with this policy. Unclaimed items are kept at the RTAA Receptionist’s Desk for 30 days (storage room permitting). After that time, the items are sent to RTAA’s warehouse for storage. Items not claimed within 90 days must be disposed of using the methods in this policy. Because a Lost and Found item may be discovered at any time, it is important that everyone is familiar with the process on how to deliver the item to Lost and Found. If an item is found when RTAA offices are open (7:30 A.M. to 4:30 P.M. Mon.- Fri., excluding holidays), then it should be brought to the RTAA Receptionist in the RTAA Administrative Office. If an item is found when RTAA offices are closed: Contact the Airport Communications Center (AirCom) (internal extension 6600 or phone 775-328-6600) and request that someone be dispatched to take possession of the found item until the next business day when the item is taken to the RTAA Receptionist’s desk where it will be logged, returned to the owner, and/or stored following this policy. AirCom may attempt to page the property’s owner if there is identity information on the item. If the property’s owner responds to AirCom’s page and is already past the TSA Security Checkpoint, but the lost item is pre-Security, the owner/passenger must exit the Sterile Area to retrieve their property. Lost items may never be taken into the Sterile Area without having that item screened at the TSA Checkpoint. If you encounter an unattended bag or suspicious “lost item” of any sort, contact AirCom and request that an Airport Police Officer be dispatched to take possession of the item.


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If a found item is one that a reasonable person believes should not be stored, such as it is infested, has an odor, or a similar problem, Airport Police Officers or AirCom may determine that it should be disposed of immediately. The description (including any serial numbers, model numbers or identification), the area where found, and the date the item was found will still be logged in, along with the disposal method and the reason for the disposal. For questions about taking possession of lost items, contact the RTAA Manager of Airport Security. Disposition of specific items after 90 days will be as follows: Cash Donated to RTAA charity of the year High Value Items Donated to RTAA charity of the year Eyeglasses Donated to local Lions Club Bicycles Donated to local Kiwanis Club bicycle program Clothing/Shoes/Purses/Belts/Clothing Accessories These items are donated equally between Swope Middle School and the RTAA Community Partner of the Year Ambulatory Devices (Canes/Walkers/Crutches/etc.) Donated to Care Chest of Sierra Nevada Cell Phones Donated to Committee to Aid Abused Women Electronics Donated Alternate Months to Salvation Army and Goodwill after memory has been erased. If memory cannot be erased, the items should be destroyed. Luggage Donated to RTAA charity of the year or Kids Kottage if the RTAA yearly charity does not accept luggage Sporting Goods Donated to RTAA charity of the year All organizations receiving donations will be asked to sign a receipt for the items accepted.


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Miscellaneous All other goods are donated to the RTAA charity of the year or disposed of if there is no interest in accepting them by any of the charities or the item has no value as determined by RTAA Marketing and Public Affairs. At the end of the initial 30 days and before the items are moved to longer term storage, the Receptionist will send over all information for items with an estimated value of over $1000.00 or contain data (such as laptop computers) to the Airport Police. They will check to discover if these items have been reported as stolen. Cell phones are excluded from this procedure. Charities will be contacted annually to determine if they are still the appropriate place for the donation of the particular items listed for donation to them. Swope Middle School is currently RTAA’s Partner in Education. If a new partner is chosen, the donations will then be made to the new partner. If an additional partner is chosen, the donations will be divided between the partners. SIGNATURE AUTHORIZATION Effective Date: _______________________ Marily Mora, A.A.E. Date President/CEO Supersedes: __________________________ Revised: ____________________________ Revised: ____________________________


Date: January 4, 2017 Memo: # 17(01)-02 To: Chairman & Board Members For: January 12, 2017 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: ADOPTION OF RESOLUTION NO. 532: A RESOLUTION RESCINDING

RESOLUTION NO. 461 TO ESTABLISH AN AMENDED TRAVEL POLICY FOR THE RENO-TAHOE AIRPORT AUTHORITY

STAFF RECOMMENDATION Staff recommends the Board adopt Resolution No. 532 which rescinds Resolution No. 461, to amend the Travel Policy for the Reno-Tahoe Airport Authority. PURPOSE This action is to obtain Board approval to rescind Resolution No. 461 and adopt Resolution No. 532, amending Reno-Tahoe Airport Authority (RTAA) Travel Policy for Trustees and employees. This action is in support of the RTAA Strategic Priority # 1 – Increase Air Service, and the Guiding Principles of Air Service Development, Financial Integrity, and Professionalism and Ethics, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND On February 9, 2006, the Board of Trustees approved a written travel policy via Resolution 461, to set forth the terms and conditions for the reimbursement of expenses incurred while traveling on RTAA business. Because the specific terms of the policy are part of the resolution, changing it to comply with practical as well as legal considerations is cumbersome. Thus, the Resolution has been rewritten to more broadly identify the Board’s policy while allowing the RTAA the flexibility to update and amend the specific policy as needed. DISCUSSION Travel Expense reports submitted by Board members and employees are reviewed to ensure that reimbursed travel expenses comply with the Travel Policy. This resolution enumerates: Who gives permission for travel and how; Budget considerations; What is expensable during travel; Who is covered through expense reimbursement; What forms are used; What documentation is required for reimbursement; The availability of reasonable travel advances; Conditions for conducting personal business while traveling; The expectation that good judgement and regard for economy will govern travel

decisions; and How reimbursements of travel expenses will be handled when circumstances arise that

are not included in the policy.

Resolution No. 532, Travel Policy # 17(01)-02 January 12, 2017, Board Meeting Page 2 of 2

FISCAL IMPACT: The fiscal impact is neutral. COMMITTEE COORDINATION This item is scheduled to be presented at the January 10, 2017 Finance and Business Development Committee meeting. RECOMMENDATIONS Is is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board adopts Resolution No. 532 to establish an amended Travel Policy for the Reno-Tahoe Airport Authority effective January 12, 2017.” MMM/pn/cj

RESOLUTION NO. 532 A RESOLUTION RESCINDING RESOLUTION NO. 461 TO ESTABLISH AN

AMENDED TRAVEL POLICY FOR THE RENO-TAHOE AIRPORT AUTHORITY

WHEREAS, the Reno-Tahoe Airport Authority (RTAA) desires to establish a policy that recognizes that certain travel and related expenses incurred on behalf of the RTAA by its Board of Trustees (Trustees) and employees are of benefit to the RTAA and that the RTAA will reimburse reasonable and customary expenses associated with such travel and like expenditures; and

WHEREAS, the RTAA desires to fairly and economically administer such travel and related expenses by establishing guidelines; and

WHEREAS, the RTAA desires to broaden the resolution to identify the goals of the policy while allowing the President/CEO the flexibility to update and amend the specific internal policy as warranted by practical as well as legal considerations,

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the RTAA that this Resolution No. 532 authorizing the President/CEO to amend the Travel Policy for the RTAA, is hereby adopted as set forth below.

Any Trustee or employee traveling on RTAA business shall be governed by the following travel policies:

1. Trustees and Employees shall obtain prior written approval for travel. Trustees shall obtain the prior written approval of the Chairman or in the Chairman’s absence, the Vice-Chairman before incurring reimbursable expenses for travel. Employees shall obtain the prior written approval of the party designated in the current travel policy.

2. Money must be budgeted for the proposed travel. The Chairman or Vice-Chairman approving the expense is responsible for assuring that money is budgeted for the proposed Trustee’s travel. The party designated in the current travel policy to approve expenses for employees is responsible for assuring that money is budgeted for the proposed Employee travel.

3. Only those categories of expenses designated in the current travel policy are reimbursable for Trustees. Employee reimbursements are, in addition, limited to the amounts designated in the current travel policy.

4. Only the traveling Trustee or Employee may be reimbursed for actual expenses incurred. Actual expenses are not reimbursable for others traveling with the Trustee or Employee.

5. Trustees and Employees shall use the current travel policy Request form when requesting prior written approval for travel.

6. Trustees and Employees shall provide detailed receipts in accordance with the current travel policy.

7. The RTAA may provide reasonable travel advances to Trustees or Employees in accordance with the current travel policy.

8. Trustees or Employees traveling on RTAA business are permitted to conduct personal business or extend their trip connection so long as this is done at his or her own expense and on his or her own time.

9. Trustees and Employees are expected to show good judgment and proper regard to economy while incurring travel expenses as the Trustee or employee would if they were traveling at their own expense. Expenses found to be unreasonable by the Chairman or President/CEO may be denied.

10. In any instances where unusual or extraordinary travel expenses are incurred, including opportunities to entertain persons who have, or may have, a direct, current and beneficial impact on the business of the RTAA the Chairman for the Trustees and the President/CEO for the Employees may authorize an exception to the current travel policy.

On Motion by Trustee_____________, seconded Trustee_______________, the foregoing Resolution was passed and adopted this ______day of______________, 2017 by the following vote of the Board, to take effect on _________________.

Ayes_________________________________________________________________________

Nays_________________________________________________________________________

Abstain_______________________________ Absent_____________________________

_______________________ Chairman Rick Murdock

ATTEST:

_________________________ Secretary Jessica Sferrazza

Reno-Tahoe Accounting and 220-012 Airport Authority Policy and Procedures Manual

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Employee Travel Policy Policy Number 220-012 PURPOSE The President/CEO of the Reno-Tahoe Airport Authority desires to establish a policy that recognizes that certain travel and related expenses incurred on behalf of the Authority by its employees are of benefit to the Authority and that the Authority will reimburse reasonable and customary expenses associated with such travel and expenditures. The President/CEO of the Authority desires to fairly and economically administer such travel and related expenses by establishing guidelines. Any employee traveling on Authority business is expected to use common sense, a test of reasonableness, and to ensure that all expenses incurred are within established guidelines set forth in this policy. AUTHORITY/ REFERENCE This policy supplies more definitive guidelines than Board Resolution 461, which was adopted on February 9, 2006 and became effective on March 15, 2006. This policy supersedes the previous Employee Travel Policy 220-012 dated September 23, 2009. POLICY To make certain that travel and expenses meet the purpose above, employees shall have the President/CEO or Executive Vice-President/COO and the Department Manager’s prior written approval before incurring any reimbursable expenses for travel. It is the responsibility of the Department Head to assure that money is budgeted for the proposed travel. The individual who has incurred and paid the expense and, except where noted, has provided a valid itemized receipt, will be reimbursed for actual expenses according to the limits outlined in this policy. Expenses are not reimbursable for spouses, children, significant others, or other non-work related individuals who may be traveling with the employee, including, but not limited to, any difference in room rates for an additional guest. PROCEDURES Employee Travel Policy Acknowledgement The first step in traveling on business for the Airport Authority is to read the entire Employee Travel Policy 220-012. Once the policy has been read, understood, and all questions about the policy have been answered, the employee will acknowledge that by signing the Employee Travel Acknowledgement Form.


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Travel Requests All employees who wish to travel on business and have the necessary budget funds available must submit a completed and signed Travel Request Form to their manager and ultimately up the organization chart to the President/CEO or Executive Vice-President/COO for signature approval. The form is available on the P: Drive and on the RTAA Intranet. The Travel Request Form has a general breakdown of where the funds requested for travel are allocated and an estimated total expense for travel. After travel is completed, the signed Travel Request Form is submitted with the Expense Report and all other necessary documents, such as detailed/itemized receipts. Incurring Expenses Those who have been issued a P-Card are expected to use it for business travel. There may be occasions when credit cards are not accepted or are difficult to use, such as a bag tip, so cash may be necessary. Personal credit cards are another option, especially for those who do not have an Airport Authority issued P-Card. Other circumstances can occur where a personal credit card may be used to save on costs, such as an airline credit card that offers a free checked bag(s). When a personal credit card is used, the expense may not be submitted for reimbursement until after the travel is completed when the expense is included on the Expense Report. Reimbursement for Expenses

a) Registration and Materials: Actual expenses incurred for registration and conference material required for attendance at a conference, workshop, meeting or convention, are reimbursable expenses.

b) Transportation: 1. Standard Coach or Economy airfare is a reimbursable expense. Mexico,

Canada, Hawaii and Alaska are all coach class destinations. Employees are expected to find the most economical and practical airfare using whatever means are available, including multiple sources such as the internet and/or calls to individual airline’s reservation systems for those servicing the destination. On rare occasions, international travel (outside North America) may be required. Business class airfare is a reimbursable expense in that incidence. Employees are required to demonstrate efforts to obtain the lowest cost business class airfare. Upgrades, such as early boarding, more seat pitch, or “premium” seats are not reimbursable personal expenses. An explanation is required if they occur.

2. When using an Airport Authority vehicle, gasoline, oil and other usual vehicle expenses not paid for with an Airport Authority credit card are reimbursable expenses.

3. Rental Car reimbursements will be made for the expenses of renting a car used on behalf of the Airport Authority. Use of a rental car must be pre-approved and in general will be approved if other less expensive means of transportation are not available, such as a hotel shuttle or public


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transportation. Travelers are expected to rent a car appropriate for the transportation needs and purpose, usually a compact or mid-sized automobile. An Airport Authority Credit Card should always be used for rental cars and the additional insurance should be declined.

4. Private vehicle expenses are reimbursable at the current Internal Revenue Service rate for mileage using the most direct route, up to the price of coach airfare to the destination. No additional or unusual expenses such as repair or maintenance will be allowed. Carpooling for multiple people traveling to the same destination is highly recommended. If an employee receives a car allowance, there is no additional reimbursement with the exception of a round trip in excess of 200 miles. When that exception occurs, the mileage above 200 miles will be reimbursed at the current government vehicle use reimbursement rate.

5. Airline reservations should be made as early as possible to obtain the best choice of flights and price points to the location as well as avoiding the increased expense commonly incurred less than two weeks prior to the flight.

c) Meals: 1. Meals during travel are reimbursable expenses, provided they are not

included in the conference registration or part of the travel package. 2. There is no reimbursement for alcoholic beverages or taxes and tips on

those beverages. 3. The maximum allowance breakdown per meal is: breakfast $13.00; lunch

$14.00; and dinner $38.00 while traveling for business on behalf of the Airport Authority. These amounts include taxes and tips. Extenuating circumstances can be explained in the “Other” section of the Expense Report, however, reimbursement exceeding the daily allowance for the breakfast, lunch or dinner meal amount is not guaranteed.

4. Tips in excess of 20% of the meal cost are not reimbursable. 5. Meals before leaving or after returning to Reno-Sparks are not reimbursable

expenses. 6. Meal expenses must be reasonable for the destination and supported by

actual itemized receipts. No reimbursement will be given without a valid itemized receipt.

7. Beverages during the day, except at mealtime, with the exception of water, are a personal expense and will not be reimbursed.

8. Room service is discouraged unless there are extenuating circumstances which must be explained in the “Other” section of the Expense Report.

d) Lodging Reimbursement: 1. Reimbursement will be made for actual expenses on average standard

accommodations or published conference rate. If an employee desires more than average accommodations, the employee shall pay, on an un-reimbursed basis, the excess for the non-standard accommodations.

2. Lodging reimbursement is limited to the minimum number of nights required to conduct the business. Requests for reimbursement outside this limit must be justified in writing and approved by the President/CEO.

3. The employee must pay any charges above single occupancy in the average standard or published conference room rate for personal guests.


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e) Communication and Connectivity: 1. All Airport Authority business related calls, computer usage and faxes are

reimbursable expenses. 2. One personal call per day of reasonable length, using the lodging’s phone,

is a reimbursable expense. 3. Wi-Fi charges that are not part of the room charge should be procured only

if there is an urgent business requirement to do so. 4. The cost of copies needed for business purposes are a reimbursable

expense. 5. UPS or Fed-Ex type shipping charges for business purposes are

reimbursable expenses. f) Miscellaneous Expenses:

1. Tips are reimbursable expenses as follows: a. Baggage handling not to exceed $2.00 per bag b. Room tips not to exceed $5.00 per day c. Baggage Storage before or after checkout are not to exceed

$2.00 per bag or the lodging’s published rate. 2. Taxis, buses, limousines, shuttles, trains, and similar transportation are

reimbursable expenses. Thought should be given to the best and most economical mode of travel in each circumstance.

3. Laundry charges for stays after five days or nights are reimbursable expenses.

4. Bag Hold/Baggage Storage fees before check-in or after checkout are not to exceed $2.00 per bag or the lodging’s published rate.

g) Receipts: 1. Itemized receipts are required for reimbursement. 2. Receipts may be captured on an electronic device to be printed out to

accompany the Expense Report. 3. Emailed receipts are also acceptable when printed out to accompany the

Expense Report. Travel Advances The Airport Authority may provide reasonable travel advances to employees upon request. The Travel Request Form available on the intranet has a section for requesting an advance. Personal Business or Extended Trips Employees traveling on Airport Authority business may extend a trip so long as this is done at his or her own expense and on his or her own time and does not add any expense to the Airport Authority. Employees must use vacation time and have the prior approval of the President/CEO or Executive Vice-President/COO. The Travel Request Form has a section for adding this information to the business portion of the Travel Request. A completed and signed Absence Request Form must accompany the Travel Request Form for any requested time off. Entertainment While Traveling


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The guidelines above address the travel by an individual on behalf of the Airport Authority. Exceptions to these guidelines may include opportunities for the marketing, promotion, development of business relationships, or goodwill which involve entertainment of airlines, consultants, tenants, public officials, or other individuals who have, or may have, a direct, current, and beneficial impact on the business of the Airport Authority. Such opportunities must be approved by the President/CEO and/or Executive Vice-President/COO. Group Meals While Traveling Occasionally, during a conference or other approved travel, colleagues may gather to network when there are no scheduled events or programs. When impromptu meetings occur, such as meals after the day’s events occur, the situation may make getting an itemized receipt very difficult and may include alcoholic beverages. Realizing that separate checks for large groups are not always possible, that the allocation of payment may be just a division by the number of people, that meetings of this nature are valuable in terms of networking and knowledge, and that alcoholic beverages may be part of the event, RTAA will accept an explanation and the amount paid as sufficient for infrequent occurrences. A copy of the receipt, a count or names of people in the group, and what business subjects were discussed will be appreciated. Reasonableness An employee is expected to show the same good judgment and proper regard to economy when incurring travel expenses as the employee normally would if they were traveling at their own expense. Employees may have their reimbursement claim denied if the claim is found to be unreasonable by the President/CEO and/or Executive Vice-President/COO. If an expense is not ordinary or usual, include an explanation for that expense in the “Other” section of the Expense Report. Exceptions In any incidences where unusual or extraordinary travel expenses are incurred, the President/CEO and/or Executive Vice-President/COO may authorize an exception to the guidelines in writing. However, a full explanation of expenses must be provided in writing and accompany the Expense Report. Prescribing Guidelines and Policies The President/CEO may at any time prescribe policies or guidelines for employees which are more restrictive than this Policy, such as further defining “reasonable” or “reimbursable” expense and/or establishing other specific limits. The President/CEO will review the “reasonableness” of this Policy annually as part of the normal annual Budget Process.


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Expense Report (Travel Requests Reimbursement Form) All requests for travel reimbursement must be submitted on the appropriate Expense Report form (available on the P: drive and on the intranet), signed by the traveler and accompanied by the completed and signed Travel Request form, valid detailed/itemized receipts, the detailed agenda if it is a seminar or conference, and the completed Absence Request form if one was needed for an extended personal trip. The forms must be submitted no later than 10 business days following the return from travel. Should any additional fees be incurred due to delay in reporting, the employee will have such fees deducted from the reimbursement or assessed as a responsibility to refund to the Airport Authority. Reimbursement Requests that are received more than 90 days after returning from travel will be reviewed by either the President/CEO or the Executive Vice-President/COO and may be subject to non-reimbursement. Summation The Employee Travel Policy incorporates these important points for all reimbursable travel:

1) Prior approval for travel; extended travel; and estimate of expenses 2) Reasonableness 3) Prudent and economical travel choices 4) Itemized receipts included with the Expense Report 5) Flexibility in unusual situations 6) Completed and submitted Expense Report less than 10 days after the return from

travel 7) Be Responsible

SIGNATURE AUTHORITZATION This revised Policy is to take effect on ________________. Marily Mora, A.A.E. Date

President, CEO Supersedes: Employee Travel Policy 220-012 dated 9/23/2009

Date: January 4, 2017 Memo: #17(01)–03 To: Chairman & Board Members For: January 12, 2017 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: APPROVAL OF ONE NEW MEMBER TO THE RENO-TAHOE AIRPORT

AUTHORITY COMMUNITY OUTREACH COMMITTEE STAFF RECOMMENDATION Staff recommends that the Board approve one new member to the Reno-Tahoe Airport Authority Community Outreach Committee. PURPOSE The purpose of this action is to seek Board approval of one new member to the Reno-Tahoe Airport Authority (RTAA) Community Outreach Committee (COC). The proposed addition of the new member to the COC will replace a member who is not able to participate any longer. This action is in support of the RTAA Strategic Priority # 5 – Provide a Positive Environment and Experience for All, and the Guiding Principle of Customer Service, as adopted in the RTAA Fiscal Year (FY) 2014-2018 Comprehensive Strategic Plan. BACKGROUND The COC was formed in 1998. It is a Board committee currently chaired by Trustee Jessica Sferrazza. With meetings held on a monthly basis, the general goals of the committee are to promote greater community input, awareness, and outreach regarding the Reno-Tahoe International Airport and the Reno-Stead Airport (RTS). Appointments to the committee are made by approval of the full RTAA Board of Trustees in accordance with COC by-laws. The committee by-laws were last amended on November 12, 2015 to increase the membership from 17 individuals to 19. DISCUSSION In 2015, staff embarked on a new application process for current and potential members to allow the Board of Trustees to form up to a 19-member committee that spans business, industry, tourism, government, and the general public throughout the catchment area served by the Reno-Tahoe International Airport. In addition, non-voting liaisons representing the City of Reno, the City of Sparks, Washoe County and the Reno-Sparks Convention and Visitors Authority (RSCVA) are not counted as committee members. The recommended new member is Vick Wowo. Mr. Wowo’s application is attached to this board memo for review by the Trustees. FISCAL IMPACT There is no anticipated fiscal impact associated with this item.


Community Outreach Committee New Member #17(01)-03 January 12, 2017 Board Meeting Page 2 of 2 COMMITTEE COORDINATION This item is not scheduled to be presented to a Committee. RECOMMENDATION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board of Trustees approves the one new member, Vick Wowo, to the Reno-Tahoe Airport Authority Community Outreach Committee.” MMM/bk/cj

Community Outreach Committee

Name: __________________________________________________________

Home Address:_ _______________________________

City:___ ________________State:__ _____Zip Code:_____ _______

Home Phone: _ __Office Phone: _ _Cell Phone: _ __

Fax:___ ______E-mail: ___

Employment history:_______________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

Jessica Sferrazza, Trustee and COC Chair

GOALS AND OBJECTIVES of the Community Outreach Committee (COC) include: To promote greater citizen input and feedback on Airport Authority plans and initiatives. To disseminate information to the public. To promote and assist in greater citizen awareness of RTAA plans and initiatives.

New Member Application Form

Please See Reverse

Vick Wowo

and

Whitney Peak HotelSenior Sales Manager - July 2016 to presentRegional Sales Manager - March 2015 to July 2016

Circus Circus Reno Hotel and CasinoBusiness Development Manager - November 2013 to February 2015Business Development Coordinator - May 2012 to November 2013

City of Reno | Parks, Recreation & Community Services DepartmentRecreation Specialist/Supervisor III - Lead - September 2010 to May 2012Recreation Specialist II – Lead - June 2008 to September 2010

List & describe your community involvement. Include boards or committees on which you serve:____

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Why are you interested in joining the COC?____________________________________

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Thank you for your interest

Areas of expertise:__________________________________________________

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_______________________________________ _________________ Signature Date

Please return the completed application to Heidi Jared, Marketing Coordinator, at [email protected].

Page 2

-Governor’s Workforce Development Board Board of Directors (2017 – 2020)

-University of Nevada, Reno - Alumni Association CouncilBoard of Directors (2015 – present) Board Member, Community Involvement Committee

-Reno-Sparks Chamber of CommerceBoard of Directors (2016 – present) Executive Committee (2016 – 2018) Membership Value Committee Chair (2016 – 2018)

-University of Nevada, Reno - College of Business AlumniAssociation Board of Directors (2014 – present) Vice President of Public Relations (2015 – 2017)

-Reno-Tahoe Young Professionals NetworkBoard of Directors (2014 - present) Vice President (2016 – 2017) Attract & Retain Committee – Chair (2014-2016)

-University of Nevada, Reno - Young Alumni ChapterBoard of Directors (2014 – present) Vice President of Membership (2014 – 2016)

Business Development, Hospitality Sales, CommunityRelations, Non-Profit Operations, Event Planning, ProjectPlanning, Marketing, Public Relations, Event Management

I was approached by Jessica Sferrazza, Trustee and COC Chair after being recommended byMayor Hillary Schieve, along with a handful of other community Leaders.

Serving on this committee will allow me to continue serving the greater Northern Nevadaregion, a region that I am native to and passionate about.

December 30, 2016

Date: January 4, 2017 Memo: # 17(01)-04 To: Chairman & Board Members For: January 12, 2017 Board Meeting From: Marily M. Mora, A.A.E., President/CEO Subject: APPROVAL OF AN ACTION ITEM TO ESTABLISH THE PROCESS

FOR UPDATING THE RENO-TAHOE AIRPORT AUTHORITY FISCAL YEAR 2014-2018 COMPREHENSIVE STRATEGIC PLAN

STAFF RECOMMENDATION Staff recommends that the Board approve the action item, proposed by staff and discussed at the November 16, 2016 Board Retreat, regarding a process for updating the Reno-Tahoe Airport Authority (RTAA) Fiscal Year (FY) Comprehensive Strategic Plan. PURPOSE The purpose of this action is to seek approval from the Board of Trustees to move forward with the update of the RTAA FY 2014-2018 Comprehensive Strategic Plan as discussed at the Board of Trustees Retreat held on November 16, 2016. BACKGROUND The existing Comprehensive Strategic Plan was adopted by the Board of Trustees in June of 2013 and was prepared as a five year plan. In keeping with the original intent, the five year period would end in June 2018 and an update of the plan would occur in and/or around that timeframe. Although this deadline is more than a year away, the timing to start the update is important because the effort required by the Board in the update process and the need to develop implementation steps in conjunction with the RTAA’s annual budget preparation schedule can influence the Strategic Plan’s implementation schedule. At the November 16, 2016 Board of Trustees Retreat, the Board held discussions to consider two critical components associated with the process for updating the Comprehensive Strategic Plan: 1.) schedule of the RNO Airport Master Plan study, and 2.) level of stakeholder involvement. In regard to the Master Plan, the study is not scheduled to be fully completed until the end of the first quarter in 2018 (March/April). If the start of the Strategic Plan update waits until the Master Plan study is fully completed, then it is unlikely that the Strategic Plan will be adopted by June 2018. More importantly, the initiatives recommended in the update would miss the deadline for inclusion in the FY 2018-2019 budget (adopted May 2018), delaying their implementation. An alternative schedule recommended by staff entailed starting the Strategic Plan update process earlier such as around Fall of 2017. Although the Master Plan study will not have been completely finalized by this time, much of the technical analyses will be available to inform the Strategic Plan process and the timing allows for the recommended initiatives from both studies to be included in the FY 2018-2019 budget process. Since the level of stakeholder involvement expected in the Comprehensive Strategic Plan update process can influence the schedule, this issue and possible options were also


2016 Board Retreat Discussion Follow Up #17(01)-04 January 12, 2017 Board Meeting Page 2 of 3 discussed at the November 16, 2016 Board of Trustees Retreat. With the original formulation of the Strategic Plan, extensive stakeholder outreach was conducted through a series of public meetings. However, in this case the Strategic Plan update will follow closely behind the Master Plan study which includes a significant stakeholder outreach effort. Given the likelihood of “confusion” and “burnout” associated with two stakeholder outreach efforts being conducted nearly concurrently, staff recommended that the Master Plan effort could be modified to solicit feedback relevant to both Plans. Under this recommendation, a single or limited number of public Board Workshops specific to the Strategic Plan update would be held. As a result of those discussions, general consensus was reached to start the update process of the Comprehensive Strategic Plan ahead of the Airport Master Plan’s full completion and utilize the Master Plan’s stakeholder outreach program to maximize efficiency and reduce redundancy. DISCUSSION Based on discussions from the November 16, 2016 Board Retreat, staff is seeking Board approval to move forward with the following activities associated with the process for updating the RTAA FY 2014-2018 Comprehensive Strategic Plan:

i. Initiate the selection of a consultant to assist with facilitation of the Strategic Plan update in the third and/or fourth quarter of calendar year 2017

ii. Arrange a Board Workshop(s) in the first quarter of calendar year 2018 to focus specifically on the update of the RTAA Comprehensive Strategic Plan

iii. Utilize the RNO Airport Master Plan stakeholder outreach program to gather public feedback for use in the Strategic Plan update effort

iv. Adopt the updated Comprehensive Strategic Plan by the end of the first quarter in 2018 so that recommended initiatives can be included and funded in the FY 2018-2019 Budget

FISCAL IMPACT It is anticipated that a consultant will be hired to facilitate the Board Workshop discussions associated with the strategic plan update and assist with drafting of the update document. In 2013, a consultant was hired to assist with the scoping of the work effort, development of the original Strategic Plan document including stakeholder outreach, and internal implementation. The cost of all of those services was $75,655. Since much of the stakeholder outreach will be obtained through the RNO Master Planning process and this effort is an update to the already existing strategic plan, the costs associated with consultant services is expected to be substantially less than the 2013 agreement. If the Board approves this action, staff will include $35,000 in the FY 2017-2018 budget as a program allocation for these future services. As a result of the update to the Comprehensive Strategic Plan, recommendations may come forward that have a fiscal impact; however, the costs associated with these items will be vetted during the Plan update process and included in the RTAA’s O&M budget process, as appropriate.

2016 Board Retreat Discussion Follow Up #17(01)-04 January 12, 2017 Board Meeting Page 3 of 3 COMMITTEE COORDINATION This item is not scheduled to be presented at a Committee meeting, but will be discussed at the Board of Trustees meeting scheduled for January 12, 2017. RECOMMENDED MOTION It is hereby recommended that the Board adopt the following motion: “It is hereby moved that the Board directs staff to implement the process outlined above for the future update of the RTAA FY 2014-2018 Comprehensive Strategic Plan at the appropriate times.” MMM/ds/cj

Air Service • Reno-Tahoe International Airport (RNO) served 270,367 passengers in November 2016, which is up

6.7% versus November 2015. The Airport experienced positive passenger growth for the 18th consecutive month with respect to year over year monthly increases. During the first eleven months of 2016, RNO served 3,350,287 passengers, representing an increase of 6.5% when compared to the same period last year.

TOTAL PASSENGERS

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC2014 2015 2016

2014 2015

JAN 241,181 246,571 2.2% 5.4%

FEB 228,035 234,763 3.0% 14.9%

MAR 278,172 277,477 -0.2% 12.4%

1st Quarter 747,388 758,811 1.5% 10.9%

APR 266,800 256,823 -3.7% 6.6%

MAY 282,277 276,969 -1.9% 4.3%

JUN 316,720 319,309 0.8% 6.2%

2nd Quarter 865,797 853,101 -1.5% 5.7%

JUL 332,242 350,823 5.6% 1.7%

AUG 318,965 336,948 5.6% 3.9%

SEP 284,931 297,299 4.3% 9.6%

3rd Quarter 936,138 985,070 5.2% 4.8%

OCT 266,701 295,749 10.9% 2.9%

NOV 225,384 253,494 12.5% 6.7%

DEC 263,682 286,105 8.5%

4th Quarter 755,767 835,348 10.5%TOTAL 3,305,090 3,432,330 3.8%

YTD Total 3,146,225 6.5%3,350,287

1,032,400

259,868

269,807

311,974

841,649

273,707

288,763

338,954

901,424

356,768

349,934

325,698

Passengers% Diff.

Passengers% Diff.

2016

304,447

270,367

President/CEO’s Report December 2016

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

President/CEO’s Report – December 2016 January 12, 2017 Board Meeting Page 2 of 14 • In November 2016, RNO was served by eight airlines providing 1,545 departures to 19 non-stop

destinations (23 non-stop destinations if seasonal and new announced flights are included). At RNO, total seat capacity increased 7.8% and flights increased 7.1% when compared to November 2015.

• On December 19, 2016, Delta Air Lines began non-stop seasonal flights between RNO and Atlanta

International Airport. This flight operated as a three times per week service until January 3, 2017. On January 7, 2017, the flight will be reduced to a once a week schedule, with Saturday arrival and Sunday departure, and will operate until March 26, 2017. The airline will utilize a 180-seat Boeing 757 on this route.

• Starting January 7, 2017, Southwest Airlines will begin a once a week seasonal non-stop flight

between Reno and Dallas Love Field Airport (DAL) on Saturdays. Starting March 12, 2017, the airline will increase the number of weekly flights between RNO and DAL from one flight a week to two flights a week. The additional flight will operate on Sundays.

• Starting February 15, 2017, Allegiant Air will increase the number of weekly flights between Reno and Las Vegas from three flights a week to six flights a week. The airline will provide this service Sunday through Friday.

• Recent and Upcoming Schedule Changes Allegiant Air

o The non-stop flight between Reno and Las Vegas operates on Wednesdays, Fridays and Sundays. The airline flew an extra flight on this route on Monday, January 2, 2017 to accommodate holiday travel.

o The non-stop flight between Reno and Los Angeles on Thursdays and Sundays operated until January 1, 2017.

American Airlines o American Airlines temporarily suspended the daily non-stop flight between Reno and Chicago

O’Hare on November 5, 2016. The flight returned for the winter holidays from December 15, 2016 through January 8, 2017. The flight then returns to the regular schedule on February 16, 2017.

Delta Air Lines

o Delta Air Lines operated daily non-stop flights between Reno and Minneapolis from December 22, 2016 through January 1, 2017. The flight will return during the summer 2017 season.

JetBlue Airways o The non-stop flight between Reno and New York City reduced to a four times a week

schedule on September 8, 2016 (Thursday, Friday, Sunday, and Monday). The flight returned as a daily service during the winter holidays from December 15, 2016 through January 3, 2017. From January 5, 2017 through February 15, 2017, this flight will operate five days a week (Thursday – Monday), before returning to a daily schedule.

President/CEO’s Report – December 2016 January 12, 2017 Board Meeting Page 3 of 14 Southwest Airlines

o The daily non-stop flight between Reno and Chicago Midway was temporarily suspended on November 6, 2016. The flight returns to daily service on March 9, 2017.

United Airlines o United Airlines operated daily non-stop flights between Reno and Houston Intercontinental

Airport from December 16, 2016 through January 3, 2017. The flight will return as a twice a week service on January 7, 2017, operating on Saturday and Sunday, and will be available through the end of summer 2017.

Volaris o The non-stop flight between Reno and Guadalajara, Mexico operates on Mondays,

Wednesdays, and Fridays. The airline increased the frequency on this route to four times a week beginning December 20, 2016 until January 3, 2017. The additional flight operated on Tuesdays.

• In November 2016, RNO handled 13,089,468 pounds of air cargo, an increase of 12.3% versus

November 2015. During the first eleven months of 2016, RNO handled 139,163,748 pounds of air cargo, an increase of 15.4% when compared to the same period last year.

TOTAL CARGO

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

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

2014 2015 2016

President/CEO’s Report – December 2016 January 12, 2017 Board Meeting Page 4 of 14

2014 2015Pounds Metric

JAN 10,303,380 10,113,421 -1.8% 11,939,003 5,415 18.1%FEB 9,486,697 9,418,781 -0.7% 10,947,416 4,965 16.2%MAR 9,758,391 10,381,009 6.4% 13,004,808 5,898 25.3%1st Quarter 29,548,468 29,913,211 1.2% 35,891,227 16,277 20.0%

APR 9,876,465 10,416,248 5.5% 12,341,233 5,597 18.5%

MAY 10,269,963 10,634,389 3.5% 12,088,321 5,482 13.7%

JUN 9,679,744 10,595,645 9.5% 13,432,224 6,092 26.8%

2nd Quarter 29,826,172 31,646,282 6.1% 37,861,778 17,171 19.6%

JUL 10,863,843 11,775,072 8.4% 12,691,135 5,756 7.8%

AUG 10,853,726 11,031,470 1.6% 13,977,442 6,339 26.7%

SEP 10,127,014 12,360,393 22.1% 13,347,173 6,053 8.0%

3rd Quarter 31,844,583 35,166,935 10.4% 40,015,750 18,148 13.8%

OCT 11,429,538 12,160,586 6.4% 12,305,525 5,581 1.2%

NOV 10,664,398 11,657,012 9.3% 13,089,468 5,936 12.3%

DEC 15,776,084 17,907,699 13.5%

4th Quarter 37,870,020 41,725,297 10.2%

TOTAL 129,089,243 138,451,725 7.3%

YTD Total 120,544,026 139,163,748 63,113 15.4%

% Diff.2016

% Diff.Cargo in Pounds

Parking and Ground Transportation Activities

President/CEO’s Report – December 2016 January 12, 2017 Board Meeting Page 5 of 14 • Revenue Comparison for 2014, 2015 and 2016

• 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 December are shown in the table on the next page. TNC (Uber & Lyft) trip activity increased by 599 customer trips from November 2016 to December 2016 for a total of 5,488 TNC trips. These trips account for 46% of all TNC/Taxi customer transport. Taxi trips for December 2016 when compared to December 2015 show a decline of 2,189 taxi trips year over year.


Business Development Reno-Tahoe International Airport (RNO) Economic Development • Gateway Center

RTAA staff and General Counsel Ann Morgan continue to work in good faith with the developer, JMA Ventures LLC, to finalize the Aloft Hotel ground lease. Full execution of the ground lease is anticipated in January 2017.

• FedEx Ground The RTAA and FedEx Ground have executed a three-month Use Permit to lease 100,000 square feet of vacant land located on South Rock Boulevard south of Dassault Aircraft Services for the purpose of FedEx trailer storage during the busy holiday months. The Use Permit began December 1, 2016 and ends February 28, 2017. Over the course of the term, $15,630 in incremental non-airline revenue will be generated.

Reno-Tahoe International Airport (RNO) General Aviation • RNO CEO Advisory Group on GA Commercial Minimum Standards (GAMS)

On December 8, 2016, the RTAA Board of Trustees approved and adopted the final RNO GAMS document. Subsequently, staff distributed the adopted RNO GAMS to the RTIA General Aviation


tenants. Staff will be conducting tenant outreach to discuss the implementation of the newly adopted GAMS and any tenant impacts.

Reno-Stead Airport Economic Development (AED) • Exclusive Master Real Estate Developer

On December 8, 2016, the RTAA Board of Trustees approved staff’s recommendation and authorized the President/CEO to negotiate final terms and execute an exclusive Master Development Agreement (MDA) with DP RTA Stead, LLC (DP) to serve as the exclusive master real estate developer at the Reno-Stead Airport (RTS) and also to authorize the President/CEO to negotiate final terms and execute a 50-year Phase 1 ground lease with DP or its nominee at RTS. The MDA was fully executed on December 8, 2016. Staff expects to provide the Phase 1 ground lease to DP in January.

Reno-Stead Airport (RTS) General Aviation

• RTS CEO Advisory Group on GA Commercial Minimum Standards (GAMS) In December, staff distributed additional draft GAMS sections to the RTS GAMS CEO Advisory

Group. The group will review the content at the next CEO Advisory Group meeting to be held in January 2017. A public workshop is scheduled for Tuesday, February 21, 2017, at 4:30 p.m. at the Reno-Stead Airport Terminal to review and comment on the draft RTS GAMS.

Outside Commercial Properties

• Airport Mini Warehouse A-Rooter Man Plumbing, Sewer & Drain Cleaning Service, Inc. A new 24-month Commercial Lease Agreement was executed with A-Rooter Man Plumbing, Sewer & Drain Cleaning Service, Inc. (A-Rooter Man) for 2,000 square feet of space at 2890 Vassar Street. A-Rooter Man is an existing tenant that required additional space and is utilizing the new space as a general office and for equipment storage. The total contract value is $20,160. NAI Alliance A 12-month First Amendment to Commercial Lease Agreement was executed with NAI Alliance for renewal of their existing 1,000 square feet of space at 2890 Vassar Street. NAI Alliance utilizes the space for general storage and as a work area for their maintenance technicians. The total contract value is $4,141.20.

• McCeig Insurance A new 12-month Commercial Lease Agreement was executed with McCeig Insurance for 283 square feet of space at 1280 Terminal Way. McCeig Insurance is a new tenant who will use the space for general office for their insurance business. The total contract value is $3,056.40.

• Designs for Living Tile & Stone A 24-month First Amendment to Commercial Lease Agreement was executed with Designs for Living Tile & Stone at 2890 Vassar Street, Suite AA-7 for the renewal of their existing 1,000 square feet of space. Designs for Living Tile & Stone uses the space for general office and materials storage. The total contract value is $11,471.76.

President/CEO’s Report – December 2016 January 12, 2017 Board Meeting Page 8 of 14 Concessions • Enterprise Rental Car

Enterprise Rental Car has executed a one year Lease for additional vehicle parking on the vacant lot adjacent to the Alamo/National service facility between Terminal and Airmotive Way. This Lease includes an option to extend for an additional six months. For the twelve month term, this Lease will generate an additional $84,000 in incremental non-airline revenue.

Airlines • Southwest Airlines

Southwest Airlines removed four ticket counters and added one repacking center and three bag drop units to their ticket counter area. In addition, five self-bag tag kiosks were also added in the queuing area of their airline ticket lobby. This new equipment adds increased efficiency to the Southwest passenger check-in experience.

Organizational Training & Development • In support of succession planning efforts, a Business Writing “short course” concluded with six

employees receiving certificates of completion. A requirement for both the Operations Skills and Supervisory Skills Degrees within the Airport Authority University (AAU), this course was offered once a week and was designed to provide participants with the necessary tools to strengthen their writing skills and help them succeed in future promotional opportunities.

• Human Resources (HR) staff presented an Excel Basics class for those who are new to spreadsheets. Presented in two sessions, lessons included navigation, formatting, and basic formulas.

• HR staff coordinated a series of training classes for designated evacuation wardens. Wardens play a

critical role in the event of an emergency evacuation of the terminal building. Taught by Airport Firefighters, this training reviewed the roles and responsibilities of designated evacuation wardens and included a tour of Warden Kits. The kits are located in strategic locations throughout the terminal building and include such items as a bullhorn, emergency vest, procedure checklist, and flashlight.

• Human Resources coordinated the quarterly Leadership Webinar Series. This program was titled,

“Guidance” and reviewed the responsibility of supervisors to provide praise and feedback to employees.

Miscellaneous Information • The Reno-Tahoe International Airport continues to grow in social media. The Airport has a

Facebook following of 12,048 and a Twitter following of 6,338. On social media during the month of December, topics included:

A year-end holiday video of the Airport activities supporting the community, Holiday travel tips, Delta Air Lines inaugural flight to Atlanta, Fare sales, and


The employee photo contest

• As a special customer treat, the Kindness Takes Flight team donned santa hats, reindeer antlers and put on their best singing voices, to spread holiday cheer. On December 23rd during the busy travel period, the social media do-gooders sang carols throughout the terminal for unsuspecting passengers. The holiday sounds were well received, with many passengers joining in the singing and recording the carolers. This was in addition to the eight scheduled music performances by students and professional musicians, previously mentioned in last month’s report.

• Staff is working with the City of Reno to host the State of the City Address at Atlantic Aviation on Thursday, January 26th at 5:30 p.m. Reno Mayor Hillary Schieve will provide a community update to the region, highlighting the success of the Reno-Tahoe International Airport and the growth of the local economy. Music, refreshments and an aviation backdrop will make the event fun. Several hundred members of the community are expected, along with local news media.

• Staff is preparing to celebrate the inaugural flight on Southwest Airlines to Dallas Love Field. The

Saturday morning departure on January 7th at 11:00 a.m. will begin weekly seasonal service to Southwest’s headquarters, and will include a Dallas Cowboys football theme with cheerleaders, food and fun. Members of the community are encouraged to attend and may enter to win two Southwest Airlines tickets and a football playoff game package valued at $1,000.

• The annual Swope Middle School Food Drive occurred in December with deliveries made on

December 13th to families in the local community. Each year, as part of this holiday tradition with the Airport’s Partner in Education, Airport volunteers take dozens of boxes of food to Swope students’ families in need.

• As part of an annual holiday tradition to maintain positive working relations, Airport staff delivered sandwiches and snacks to the local print, radio and television news media outlets.

• Staff conducted television, radio and print interviews recently with topics including: o Busy holiday travel o Weather related delays due to high winds


o U.S. Customs & Border Protection (CBP) legislation to allow for reimbursement of CBP officers o Year-end wrap ups of new destinations and routes for RNO and their economic impact

• Public Utilities Commission of Nevada – Battery Storage Technologies RTAA Planning staff continue to monitor and participate in the Public Utilities Commission of Nevada’s (PUCN’s) “Investigation Regarding Battery Storage Technologies” (Docket 16-010113). This Docket is currently on hold due to a proposed change in the Presiding Officer.

• Public Utilities Commission of Nevada – NV Energy’s General Rate Case and Integrated

Resource Plan RTAA Planning staff continue to monitor and participate in the local (Northern Nevada) government coalition (City of Reno, City of Sparks, City of Carson City, Washoe County School District, Carson City School District, Douglas County School District, and the Reno-Sparks Indian Colony) to provide input into Sierra Pacific Power Company’s d/b/a NV Energy (“Sierra Pacific”) 2016 General Rate Case (GRC) and the Integrated Resource Plan (IRP): Public Utilities Commission of Nevada (PUCN) - Docket No. 16-06006 and Docket No. 16-07001. The Coalition retained McDonald Carano Wilson (MCW) to file a reservation establishing the right to monitor the GRC and the IRP and to intervene on the Coalition’s behalf, if and when it becomes necessary. GRC Docket: On December 22, 2016, the PUCN approved an order that resulted in the following: o The Stipulation, signed by The Coalition, was accepted. Northern Nevada customers’ electric rates were reduced by 0.44% and natural gas rates were

reduced by 2.16%. NV Energy’s return-on-equity (ROE) was set at 9.6% for the electric operations and 9.5% for

gas operations (a decrease from the former 10% ROE); and NV Energy’s depreciation schedule was set whereby depreciation costs customers less than

the amount originally filed by NV Energy. o The PUCN authorized an additional 6 megawatts (MW) of newly-installed rooftop solar capacity

under Net Energy Metering-1 (NEM-1), approximately 40% of total existing capacity, starting on January 1, 2017 and continuing until November 30, 2036.

o All existing NEM-2 customers (RTAA) are “grandfathered” into the old NEM-1 structure.

IRP Docket: Also on December 22, 2016, the PUCN approved an order that resulted in the following: o The Demand Side Management (DSM) Stipulation, signed by The Coalition but opposed by the

Bureau of Consumer Protection (BCP), was accepted. BCP’s requests for DSM cuts were denied.

o The program budget for all northern Nevada schools was approved at $400,000 per year for calendar years 2017, 2018, and 2019.

o The Commercial Program was approved with a budget of $4,600,000 for each of those three years as well.

• 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 fully operational since March 2011. Solar power generation results are provided below. Banked credits have been used during those months when not enough power is generated to cover the monthly use. As indicated in the table below, approximately $4,572 in


electrical costs have been saved as a result of the solar system during the current 2016-2017 fiscal year period.

Power Generation Nov 2016 FY 2016-2017 Energy Offset from Monthly Bill $888 $4,572 Energy Credits Banked $0 $0 Banked Credits Applied ($0) ($0) Total Earned $888 $4,572 Banked Credits Remaining NA $0

• Recycling at Reno-Tahoe International Airport

Beginning July 2016, Airport Authority staff have successfully collected approximately 40.23 tons of recyclable materials during the FY 2016-2017 period. These recyclables equate to an 11.55 percent diversion rate of the Airport’s total waste volume. An annual recycling objective remains set at 10 percent. As a result of hauling cost-reduction measures, collected recyclables are no longer transported monthly to local recycling centers. Airport Authority staff accumulate recyclables for longer periods of time before transportation, thereby decreasing the number of annual trips. As a result, during some months there are no reportable quantities for certain materials, as illustrated in the table below.

Material Dec 2016 (Tons) FY16-17 (Tons) Cardboard 3.31 14.78 Mixed Paper 1.72 5.08 Single-Stream Recyclables (Plastics, Glass, Cans, Paper, etc.)

3.79 19.94

Batteries 0.04 0.46 Total 8.86 40.25

Quarterly Strategic Plan Update

Next Quarterly Strategic Plan Update – January 2017 Report

State Legislative/Government Affairs Update • In support of the RTAA, the McDonald·Carano·Wilson (MCW) Government Affairs Group provides

the following information for December 2016: Issues Monitored

MCW continues to monitor a variety of issues that could impact the RTAA, including: o Preservation of the Assembly Bill (AB) 161 (2015) Aviation Tax Abatement o Firearms in Airports o Air Service Development o Renewable Energy o Procurements o UAS Support Resolution o Flood Management Authority Fees


o Employment Laws o Prevailing/Minimum Wage o Economic Development

2017 Legislative Session

The November 2016 election resulted in significant changes at the Nevada Legislature. Prior to the election, the Nevada Senate was an 11-10 majority for the Republicans, and the Nevada Assembly was a 25-17 majority for the Republicans. Today, the Nevada Senate is an 11-9-1 majority for the Democrats (one formerly Republican senator switched to non-partisan), and the Nevada Assembly is a 25-17 majority for the Democrats. The 2017 session will represent the third straight session with a change in control of both Houses, as in 2013 both Houses were controlled by the Democrats and in 2015 both Houses were controlled by the Republicans. Furthermore, the November 2016 elections heralded in a significant number of first-time legislators. Of the 63 total legislators, 17 are freshmen. Of the 10 Senate committees, three will be chaired by freshmen (Revenue, Legislative Operations and Elections, and Natural Resources). Of the 10 Assembly committees, one will be chaired by a freshman (Judiciary), while another six committees will have a first-time chairman. The makeup of the 2017 legislature is similar to 2011 and 2013, when the Democrats held the majority in each house while the Governorship was held by a Republican. In those two sessions, Governor Sandoval vetoed a collective 45 bills. It seems reasonable to expect a similarly significant number of vetoes in 2017. The legislative session runs from February 6, 2017 through June 5, 2017. While the Governor has yet to announce his budget, and the Senate and Assembly majority leadership have yet to announce their respective policy priorities, MCW expects the following issues to be among the most significant addressed in the upcoming session:

o Budget: The Economic Forum has announced approximately 15% more in available revenues

than the current budget. Therefore, MCW expects government expenditures to rise accordingly. Many of the revenue increases will be allocated to increased student enrollment and Medicaid expenditures.

o Property Tax: Local government funding has been hit hard by the recession and has not

bounced back due to the current property tax cap. MCW expects several bills to suggest a reformulation of the property tax cap in order to increase local government revenues.

o K-12 Funding: The Governor has announced that the Education Savings Account program

recently invalidated by the Nevada Supreme Court will be a priority for the 2017 session. MCW expects this issue to interplay with legislative desires to increase the weighted formula funding for students, which could carry a significant price tag.

o Wages: MCW expects legislation to increase the hourly minimum wage in Nevada, and we are monitoring any proposed changes in prevailing wage laws (e.g. BDR 747).


o Elections: It seems likely that bills will be introduced on issues such as same-day voter registration and automatic opt-in voter registration systems. For Reno, there is already a bill to implement ward-only voting for City Council in both the primary and general elections. Other cities may seek similar legislation.

o Energy: Over the course of 2016, the Governor convened the New Energy Industry Task

Force to make recommendations on energy policy in Nevada. That Task Force developed 27 recommendations. Only a small amount of those recommendations were adopted by the Governor, leaving it up to the legislature to decide whether to adopt any of the other recommendations. The overwhelming passage of Question 3 in November 2016, which sets a course for deregulation of the energy industry, creates momentum for substantive changes to energy policy by the legislature.

o Workforce Development: Increased funding for community college programs will likely be a

priority for the legislature. o Economic Development: Financial incentives for economic development have been a

hallmark of the Sandoval administration. MCW expects continued focus in this area and opportunities to increase economic development throughout the state.

Legislative Reception

MCW is working to schedule a legislative reception. The reception, which will host all legislators, is tentatively scheduled for March 2017 in Carson City. A specific date that works for all parties is still being worked on.

Bill Tracker Included with this update is a current copy of the legislative bill tracker MCW has prepared for the RTAA. This is a dynamic bill tracker that will be continuously updated throughout the 2017 session. We are currently tracking 63 proposed bills.

Legislative Committees

Included with this update is a current list of Senate and Assembly committee memberships for the 2017 session.

Federal Legislative/Government Affairs Update • The Porter Group LLC reports the following federal update for the Reno-Tahoe Airport Authority:

Due to the Congress being in session only half the month of December before adjourning, this may be one of the shorter federal updates submitted this year, however that does not mean it is thin on substance. Porter Group is so happy to notify the RTAA Board that the bill we have been pushing for a while

now, the Cross-Border Trade Enhancement Act, was signed into law by President Obama on December 16, 2016. This law gives the RTAA the opportunity to participate in a U.S. Customs and Border Protection (CBP) program that allows the Airport to reimburse the government for up


to five additional full-time CBP officers. If accepted into the new program, the RTAA will have the ability to significantly cut passenger wait times at customs checkpoints, thus providing a better experience to encourage new international flights to and from northern Nevada. Porter Group is already preparing material that will be included in the RTAA’s application when the government announces the creation of the reimbursement program.

Looking forward, Porter Group is already beginning to have conversations on the federal appropriations process and preparing for the upcoming Federal Aviation Administration (FAA) Reauthorization legislation that will be needed by the end of 2017, by working with industry partners and Capitol Hill staff to address Passenger Facility Charges and other airport issues. Due to Senator-elect Catherine Cortez Masto getting a spot on the Senate Transportation Committee, both of Nevada’s Senators will have a seat on this important committee. Both Porter Group and Ms. Mora and Mr. Schultz have met with Senator-elect Masto and will continue briefing her on things important to the RTAA.

board of trustees president/ceo andy wirth, vice ......board of trustees president/ceo rick murdock,...

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