BOARD OF TRUSTEES
Carol Chaplin, Chair
Richard Jay, Vice Chair
Jennifer Cunningham, Treasurer
Adam Kramer, Secretary
Shaun Carey, Trustee
Joel Grace, Trustee
Kitty Jung, Trustee
Art Sperber, Trustee
Cortney Young, Trustee
PRESIDENT/CEO
Daren Griffin, A.A.E.
CHIEF LEGAL COUNSEL
Ian Whitlock
BOARD CLERK
Lori Kolacek
AGENDA
Board of Trustees Regular Meeting
Thursday, May 23, 2024 | 9:00 AM
Reno-Tahoe International Airport, Reno, NV
Administrative Offices, Second Floor
Notice of Public Meeting
Meetings are open to the public and notice is given pursuant to NRS 241.020.
This meeting will be livestreamed and may be viewed by the public at the following link:
Watch on Zoom: https://us02web.zoom.us/j/86188201516
Listen by Phone: Dial 1-669-900-6833
Webinar ID: 861 8820 1516
Accommodations
Members of the public who require special accommodations or assistance at the meeting are requested
to notify the Clerk by email at [email protected] or by phone at (775) 328-6402. Translated
materials and translation services are available upon request at no charge.
Public Comment
Anyone wishing to make public comment may do so in person at the Board meeting, or by emailing
comments to lkolac[email protected]. Comments received prior to 4:00 p.m. on the day before
the meeting will be given to the Board for review and included with the minutes of this meeting. To
make a public comment during the Zoom meeting, please make sure your computer or device has a
working microphone. Use the “Chat” feature to submit a request to speak. When the time comes to
make public comments, you will be invited to speak. Public comment is limited to three (3) minutes
per person. No action may be taken on a matter raised under general public comment.
Posting
This agenda has been posted at the following locations:
1. RTAA Admin Offices, 2001 E. Plumb
2. www.renoairport.com 3. https://notice.nv.gov/
Supporting Materials
Supporting documentation for this agenda is available at www.renoairport.com, and will be available
for review at the Board meeting. Please contact the Board Clerk at [email protected], or
(775) 328-6402 for further information.
RTAA Board of Trustees – May 23, 2024 Pg. 2
1. INTRODUCTORY ITEMS
1.1 Pledge of Allegiance
1.2 Roll Call
2. PUBLIC COMMENT
3. APPROVAL OF AGENDA (For Possible Action)
4. APPROVAL OF MINUTES
4.1 April 11, 2024, Board of Trustees meeting
4.2 April 23, 2024, Board of Trustees workshop
5. PRESIDENT/CEO REPORT
6. BOARD MEMBER REPORTS AND UPDATES
7. CONSENT ITEMS (All consent items may be approved together with a single motion, be
taken out of order, and/or be heard and discussed individually.)
7.1 Board Memo No. 05/2024-16 (For Possible Action): Review, discussion and potential
authorization for the President/CEO to execute a one-year contract for the Reno-Tahoe
Airport Authority employee workers’ compensation insurance coverage for Fiscal Year
2024-2025, with Starr Aviation, in the amount of $145,367
7.2 Board Memo No. 05/2024-17 (For Possible Action): Review, discussion and potential
authorization for the President/CEO to execute a five-year contract for the operation and
maintenance of the Baggage Handling System to Daifuku Services America Corporation in
accordance with requirements of the original manufacturer and the Transportation Security
Administration with the five-year total for all services in the amount of $8,231,595.73
7.3 Board Memo No. 05/2024-18 (For Possible Action): Review, discussion and potential
authorization for the President/CEO to execute a professional services agreement for design
services for the General Aviation East Apron and Taxilane Reconstruction Project at the
Reno-Tahoe International Airport, with Kimley-Horn and Associates, Inc, in the amount of
$437,080
8. INFORMATION / POSSIBLE ACTION ITEMS
8.1 (Non-Action Item): Public Hearing on adoption of the Reno-Tahoe Airport Authority’s
Fiscal Year 2024-25 Budget (July 1, 2024 through June 30, 2025)
(This is an opportunity for the public to comment on the Reno-Tahoe Airport Authority’s proposed
budget for the 2024-2025 fiscal year.)
RTAA Board of Trustees – May 23, 2024 Pg. 3
8.2 Board Memo No. 05/2024-19 (For Possible Action): Review, discussion and potential
adoption of the Reno-Tahoe Airport Authority’s Fiscal Year 2024-25 Budget (July 1, 2024
through June 30, 2025)
8.3 Board Memo No. 05/2024-20 (For Possible Action): Review, discussion and potential
adoption of Resolution No. 567 Amending Resolution No. 565, Establishing the Airport
Rates and Charges for Fiscal Year 2024-25 Pursuant to the Reno-Tahoe Airport Authority
Budget for Fiscal Year 2024-25
8.4 Board Memo No. 05/2024-21 (For Possible Action): Review, discussion and potential
approval of Investment Banking Pool of Underwriters Related to the Issuance of Airport
Revenue Bonds by the Reno-Tahoe Airport Authority for the MoreRNO Program of
Projects with BofA Securities Inc., Jefferies LLC, Samuel A. Ramirez & Co., Wells Fargo
Corporate & Investment Banking, Academy Securities Inc., Loop Capital Markets, RBC
Capital Markets LLC, and Stifel Nicolaus & Company Inc. and Underwriter Assignments
for the Initial Issuance of Bonds Anticipated in 2024
8.5 Board Memo No. 05/2024-22 (For Possible Action): Review, discussion and potential
approval of Resolution No. 568 Authorizing Declarations of Official Intent Under Internal
Revenue Code Regulations with Respect to Reimbursements from Bond Proceeds of
Advances Made for Payments Prior to Issuance and Related Matters
8.6 Board Memo No. 05/2024-23 (For Possible Action): Review, discussion and potential
adoption of Reno-Tahoe Airport Authority Fiscal Year 2024-25 Liability and Property
Insurance Program and Approval of Premiums in the Amount Not to Exceed $1,630,00
8.7 Board Memo No. 05/2024-24 (For Possible Action): Review, discussion and potential
adoption of Resolution No. 566 Amending Resolution No. 548 – A Resolution Adopting an
Update to Policy No. 600-007 on the Financial Incentives for Airlines and Dedicated Cargo
Carriers at the Reno-Tahoe International Airport
8.8 Board Memo No. 05/2024-25 (For Possible Action): Review, discussion and potential
authorization for the President/CEO to execute an Amendment No. 1, to the Professional
Services Agreement, for design services for 30 to 100% for the HQ Project at Reno-Tahoe
International Airport, with RS&H Company, in an amount of $6,326,407
8.9 (Non-Action Item): CEO's recommended changes to CSP and Management Guidelines
10. TRUSTEE COMMENTS AND REQUESTS
11. UPCOMING RTAA MEETINGS
DATE
MEETING
06/11/2024
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
06/13/2024
Board of Trustees Regular Meeting
RTAA Board of Trustees – May 23, 2024 Pg. 4
07/09/2024
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
07/11/2024
Board of Trustees Regular Meeting
08/06/2024
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
08/08/2024
Board of Trustees Regular Meeting
12. PUBLIC COMMENT
13. ADJOURNMENT
BOARD OF TRUSTEES
Carol Chaplin, Chair
Richard Jay, Vice Chair
Jennifer Cunningham, Treasurer
Adam Kramer, Secretary
Shaun Carey, Trustee
Joel Grace, Trustee
Kitty Jung, Trustee
Art Sperber, Trustee
Cortney Young, Trustee
PRESIDENT/CEO
Daren Griffin, A.A.E.
CHIEF LEGAL COUNSEL
Ian Whitlock
BOARD CLERK
Lori Kolacek
--DRAFT--
MINUTES
Board of Trustees Regular Meeting
Thursday, April 11, 2024 | 9:00 AM
Reno-Tahoe International Airport, Reno, NV
Administrative Offices, Second Floor
1. INTRODUCTORY ITEMS
Chair Chaplin called the meeting to order at 9:01 a.m. Trustee Kramer led the pledge. Roll was
taken by the Clerk of the Board.
Trustees Present:
Shaun Carey, Carol Chaplin, Jennifer Cunningham, Joel Grace, Richard Jay, Kitty Jung,
Adam Kramer, Art Sperber, Cortney Young
2. PUBLIC COMMENT
Chair Chaplin called for public comment. There was none.
3. APPROVAL OF AGENDA (For Possible Action)
Motion: Move to approve the agenda as presented.
Moved by: Art Sperber
Seconded by: Richard Jay
Vote: Motion passed
4. APPROVAL OF MINUTES
4.1 February 8, 2024, Board of Trustees meeting
4.2 March 14, 2024, Board of Trustees meeting
Chair Cunningham asked if there were any corrections to the Minutes of February 8, 2024, and
March 14, 2024. Hearing none, the Minutes were approved as presented.
5. PRESIDENT/CEO REPORT
Dennis LeBaron, Facilities Project Manager II, gave a presentation on spring cleaning safety.
RTAA Board of Trustees – April 11, 2024 Pg. 2
CEO Griffin recapped events happening around the airport. He spoke about the Board’s
approval of Phase III with Conrac Solutions at last month’s Board meeting and thanked the team
for their efforts to complete the commercial close. He updated the Board on Air Service
developments and also reminded the Board about the 16
th
Annual RTAA Employee Art Show.
Lastly, he congratulated Aurora Ritter, Interim Chief Commercial Officer, for being the nominee
for this year’s Woman of Achievement recognition.
6. BOARD MEMBER REPORTS AND UPDATES
Trustee Jay announced that Mike Larragueta has been named the permanent CEO for the
RSCVA.
7. INFORMATION / POSSIBLE ACTION ITEMS
7.1 Board Memo No. 04/2024-13: (For Possible Action) Review, discussion and potential
approval of a Technical Services Agreement with ServiceTec International, Inc., for a
renewal of services, effective September 1, 2023, for $124,100 annually; an amendment
dated October 10, 2023, which increases support hours from 56 to 92 per week for $91,791
annually; an amendment dated March 1, 2024, to further extend support hours from 92 to
112 per week for annual total of $257,806; finally, a renewal of the agreement commencing
September 1, 2024, for an annual amount of $257,806
This item was previously heard by the Finance & Business Development Committee on April 9,
2024. No presentation was requested by the Board and no discussion took place. The following
action was taken:
Motion: Move to authorize the President/CEO to execute a Technical Services Agreement with
ServiceTec International, Inc for a renewal of services, effective September 1, 2023 for $124,100
annually; an amendment dated October 10, 2023 which increases support hours from 56 to 92
per week for $91,791 annually; an amendment dated March 1, 2024 to further extend support
hours from 92 to 112 per week for annual total of $257,806; finally, a renewal of the agreement
commencing September 1, 2024 for an annual amount of $257,806
Moved by: Jennifer Cunningham
Seconded by: Adam Kramer
Vote: Motion passed
7.2 Board Memo No. 04/2024-14: (For Possible Action) Review, discussion and potential
approval of a Professional Services Agreement for consulting services for federal lobbying
services, with Van Scoyoc Associates, in the amount of $6,000 per month through June 30,
2026, with options for two, 2-year extensions upon mutual agreement
This item was presented by Lindsay Anderson, Director of Government Affairs, and was first
heard by the Finance & Business Development Committee on April 9, 2024. After discussion,
the Board took the following action:
RTAA Board of Trustees – April 11, 2024 Pg. 3
Motion: Move to authorize the President/CEO to execute a Professional Services Agreement for
consulting services for federal lobbying with Van Scoyoc Associates (VSA) for the period of
May 1, 2024 through June 30, 2026, with two additional options to extend for two years each
Moved by: Kitty Jung
Seconded by: Joel Grace
Vote: Motion passed
7.3 Recommended Changes to the CSP & Management Guidelines (Non-Action Item)
Larry Harvey, Chief People, Culture & Equity Officer, walked the Board through the upcoming
changes to the CSP & Management Guidelines and the timeline for the process. These
guidelines will be revised to update outdated language, titles and procedures for performance
reviews. All revisions to these guidelines must be approved by the Board. In May, staff will
give a presentation on the specific revisions and, in June, bring the changes to the Board for
approval. He thanked Trustees Chaplin and Jung for their help in this process.
8. BOARD MEMBER COMMENTS AND REQUESTS
Chair Chaplin called for any Board member comments or requests. There were none.
9. UPCOMING RTAA MEETINGS
DATE
MEETING
04/23/2024
Board of Trustees Annual Budget Workshop
05/21/2024
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
05/23/2024
Board of Trustees Regular Meeting
06/11/2024
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
06/13/2024
Board of Trustees Regular Meeting
07/09/2024
Finance & Business Development Committee Meeting
Planning & Construction Committee Meeting
07/11/2024
Board of Trustees Regular Meeting
10. PUBLIC COMMENT
Chair Chaplin called for public comment. There was none.
11. ADJOURNMENT
Chair Chaplin adjourned the meeting at 9:30 a.m.
__________________________
Adam Kramer, Secretary
BOARD OF TRUSTEES
Carol Chaplin, Chair
Richard Jay, Vice Chair
Jennifer Cunningham, Treasurer
Adam Kramer, Secretary
Shaun Carey, Trustee
Joel Grace, Trustee
Kitty Jung, Trustee
Art Sperber, Trustee
Cortney Young, Trustee
PRESIDENT/CEO
Daren Griffin, A.A.E.
CHIEF LEGAL COUNSEL
Ian Whitlock
BOARD CLERK
Lori Kolacek
--DRAFT--
MINUTES
Board of Trustees Workshop
Tuesday, April 23, 2024 | 10:00 AM
-- Virtual Only --
1. INTRODUCTORY ITEMS
The meeting was called to order at 10:00 a.m.
Art Sperber was absent at the time of roll call. All other Trustees were present by Zoom.
2. PUBLIC COMMENT
Chair Chaplin called for public comment. There was none.
3. INFORMATION / POSSIBLE ACTION ITEMS
Board Memo No. 04/2024-15 (For Possible Action): Review, discussion and potential
authorization for the President/CEO to negotiate final terms and execute a settlement agreement
with Granite Construction Company, Inc., to resolve potential litigation related to the
reconstruction of Runway 17R/35L at the Reno-Tahoe International Airport pursuant to the
Contract Agreement dated April 8, 2020, between Granite Construction Company, Inc. and the
Reno-Tahoe Airport Authority
Chair Chaplin called for discussion on this item. Tom Luria, Associate General Counsel, noted
clerical errors included in the Board Memo and corrected those errors on the record. Those
changes are shown in the attached redlined Board Memo. After discussion, Chair Chaplin called
for a motion and the following vote was taken:
Motion: With the corrections mentioned by Mr. Luria, move to authorize the President/CEO to
negotiate final terms and execute a settlement agreement with Granite Construction Company,
Inc., to resolve potential litigation related to the reconstruction of Runway 17R/35L at the Reno-
Tahoe International Airport pursuant to the Contract Agreement dated April 8, 2020, between
Granite Construction Company, Inc. and the Reno-Tahoe Airport Authority.
Moved by: Adam Kramer
Seconded by: Richard Jay
Absent: Art Sperber
Vote: Motion passed
RTAA Board of Trustees – April 23, 2024 Pg. 2
[Trustee Sperber joined the meeting at 10:10 a.m.]
3.2 Board Workshop on the Preliminary Budget of the Reno-Tahoe Airport Authority for
the Fiscal Year Beginning July 1, 2024 (FY 2024-25) (Non-Action Item)
This item was presented by Alex Kovacs, Director of Finance.
4. PUBLIC COMMENT
Chair Chaplin called for public comments. There was none.
5. ADJOURNMENT
Chair Chaplin adjourned the meeting at 11:06.
_____________________________
Adam Kramer, Secretary
President/CEO Report
To: All Board Members
From: Daren Griffin, President/CEO
Date: May 2024
AIR SERVICE DEVELOPMENT
Airline Meetings
Staff will attend the Airport Council International JumpStart conference in Washington, D.C., during the
second half of May. Staff will hold pre-arranged one-on-one meetings with eight airlines. The airlines
include Southwest Airlines, Air Canada, United Airlines, JetBlue, Sun Country, Spirit Airlines, Frontier
Airlines, and American Airlines.
March 2024 RNO Passengers
Reno-Tahoe International Airport (RNO) served 395,906 passengers in March 2024, an increase of 4.1%
versus the same period last year. In March 2024, RNO was served by 11 airlines to 22 non-stop
destinations. The total seat capacity increased 9.4% and flights increased 6.1% when compared to March
2023.
Page 2 of 8
March 2024 RNO Cargo Volume
RNO handled 8,545,646 pounds of air cargo in March 2024, a decrease of 23.2% when compared to
March 2023.
Page 3 of 8
ECONOMIC DEVELOPMENT
Concessions
Gaming Industry Days
The RTAA held Gaming Industry Days on April 16-17, 2024, to share the upcoming gaming concession
opportunity and provide an update on MoreRNO. Six separate one-on-one meetings were held with
interested parties representing different gaming entities from casinos, manufactures, and gaming
operators. These meetings allowed staff to hear from interested parties on what, in their experience,
makes a successful gaming operation, and how the gaming program might be planned in New Gen A&B
to create a viable program while balancing the passenger experience. The meeting opportunity was
posted on the RTAA's website, advertised in the Reno Gazette Journal, Nevada Government eMarketplace
(NGEM), and shared directly with local casinos as well as members of the Association of Gaming
Equipment Manufacturers (AGEM). Staff is working on next steps including follow up meetings and an
upcoming public solicitation.
Properties
GTC Project
After the Board voted to proceed with Phase III of the project, Commercial Close was achieved on April
9, 2024, which entailed execution of various documents including the 30-year Ground Lease between
RTAA and RNO Conrac, LLC, the design-build construction contract, and various financial hedges that
locked in debt rates for the deal with JP Morgan Chase. Conrac Solutions and airport staff and
representatives have continued to work diligently to prepare the required documentation for Financial
Close, finalizing design, and submitting building permits for enabling projects. Conrac Solutions achieved
Financial Close on May 2, 2024.
RTS Land Development
Dermody Properties Development
Grading work continues on the Phase I site with slab pours following shortly after. The first wall tilt-up
for the buildings is scheduled for July 10, 2024.
RNO Land Development
Stellar Aviation
Stellar continues to focus on the construction of their second hangar to complete their Phase I project.
Stellar is coordinating with RTAA Staff for a grand opening event toward the end of May, possibly May
23rd.
Tolles Development
The Tolles Development project is proceeding according to schedule and should be complete by the end
of May or beginning of June. Preleasing continues to be strong. Tolles is coordinating with RTAA Staff for
a grand opening event towards the middle of June.
OPERATIONS & PUBLIC SAFETY
Department Event 03/2024 03/2023 03/2022
Joint Actions
Aircraft Alerts: ARFF, Ops, Police, Aircom
5
2
0
Medicals: ARFF, Ops, Police, Aircom
27
39
22
Operations
Inspections
146
12
65
Page 4 of 8
Wildlife Incidents
2
0
6
Police
TSA Checkpoint Incidents
19
24
16
Case Numbers Requested
11
9
11
Security
Alarm Responses
61
76
228
Inspections: Vehicle, Delivery, Employee
940
1082
1045
Badge Actions
1012
1006
805
ARFF
Inspections: Fuelers/Facilities
13/1
22/7
2/9
Landside
Public Parking – Total Revenue
$1,511,823.00
$1,483,506.00
$1,114,479.00
Public Parking – Total Transactions
40,578
39,318
37,474
Public Parking – Average $ Per Transaction
$37.26
$37.73
$29.74
Shuttle & Bus Trips Through GT
9,369
8,970
8,819
Transportation Network Company Trips
34,191
15,344
11,709
Taxi Trips Through GT
4,670
6,108
6,376
PLANNING & INFRASTRUCTURE
Engineering & Construction
Ticketing Hall
The Ticketing Hall Grand Opening ceremony occurred on April 12, 2024. The ribbon cutting ceremony
was well attended by former trustees, local agencies, design and construction teams, airline
representatives, tenants, and many guests. The elevator beacon tower was dedicated to General Herbert
XX. The 450-foot art wall was presented with Dixie Friend Gay discussing the inspiration of her artwork.
Loop Road Construction
Phase 2 of the Loop Road Construction began on April 15, 2024. The roadway section adjacent to the
ticketing hall and baggage claim was reopened and the roadway adjacent to the parking structure was
closed with single lanes available for the parking lot and rental car returns.
Planning & Environmental
Truckee Meadows Regional Planning Authority – RTAA Annual Report
As an affected entity, per Nevada Revised Statutes 278.0286, the RTAA is required to submit an annual
report to the Truckee Meadows Regional Planning Agency (TMRPA) which indicates how RTAA actions in
the previous year (Calendar Year 2023) have furthered or assisted in implementing the 2019 Truckee
Meadows Regional Plan. As required, Planning & Environmental staff provided a targeted narrative report
that addresses specific Regional Plan goals, capital improvement plan data, and public infrastructure data
by the April 1, 2024 deadline. In recent years, TMRPA staff have evolved the static PDF report into an
interactive website available here https://tmrpa.org/tmar/
The 2022 data is currently available, and the
newly reported 2023 data should be accessible in the coming months.
FAA Airport Capital Improvement Program (ACIP)
Planning & Environmental staff submitted the required annual update to the Federal Aviation
Administration’s (FAA) Five-Year Airport Capital Improvement Program (ACIP) for both the Reno-Tahoe
International Airport and the Reno-Stead Airport on May 3, 2024. Information submitted is incorporated by
the FAA Regional Airports Office into its regional ACIP. The Regional ACIPs are then incorporated into the
National ACIP. The National ACIP is the primary planning tool used by the FAA to identify and prioritize
nationwide airport capital improvement needs and to plan for the distribution of Airport Improvement
Program (AIP) funds over the next 3 to 5 years.
Page 5 of 8
Facilities & Maintenance
Electrical Feeds to Terminal Building
On April 30, Building Maintenance along with contractors IME & Vertiv completed connection and
balancing of the two main electrical feeds that serve our two concourses and the terminal building. This
will ensure that should we have an issue with one of the electrical main feeds serving the terminal, only
portions of the terminal or one concourse would be on generator power until full power could be switched
to the other main electrical feed.
Asphalt Shoulder Repair
The Airfield Maintenance teams have been using two recently purchased pieces of equipment to perform
asphalt crack repair and asphalt patching. The RTAA invested in a Rock Saw to grind the cracks and a 4-
Ton Hot Box to keep the asphalt at the correct temperature and deliver to the locations. Currently, the
work is on the asphalt shoulders of the runway and taxiways. The deficiencies were noted in the previous
year’s inspection by the FAA to begin addressing the issues. The airfield team has provided over 4,000
man-hours and have repaired over 3,000 lineal feet of crack repair and over 77 tons of asphalt repairs.
The work is considered pre-work that needs to be completed prior to the shoulders being slurry sealed and
extending the useful life of the pavement and reduce rehabilitation or replacement cost in the future.
For more project updates, please refer to the Monthly Project Status Reports which are posted with
Planning & Construction Committee meetings agendas. Click HERE
to view those agendas.
PEOPLE, CULTURE AND EQUITY
Time frame: 4/01/2024 through 4/30/2024
Open Positions
0
New Starts
6
Resignations/Terminations*
3
Promotions
2
*Termination refers to an employee leaving under
any circumstances, good or bad.
The Culture Club sponsored an “After Hours Social Meet Up” at the Reno Public Market. Participants
enjoyed the variety of food choices as well as cornhole, a trivia contest, and some amazing conversation.
People Operations staff assisted Battalion Chiefs with testing for an Engineer (Fire) to replace a vacancy.
The test consists of a written portion as well as a practical application segment that tests on various
functions and apparatuses. All candidates were internal.
All employees were scheduled to attend “Intro to DEI: Unconscious Bias” training as part of an
organization-wide initiative to focus on Diversity, Equity, and Inclusion. Conducted by Angie Taylor of
Guardian Quest, this program was highly interactive and impactful, and participant feedback has been
very positive.
MARKETING & PUBLIC AFFAIRS
Marketing
A refreshed advertising campaign began in mid-April, shifting concentration to RTAA’s Air Service focus
nonstop destinations: Austin, Texas, and Atlanta, Georgia; while also seeding the market with ads for
Nashville, Tennessee, (see example below). These ads, along with complementary videos, are appearing
on Facebook, Instagram, X, Google and StackAdapt. We anticipate a slight increase in advertising spend
Page 6 of 8
will result in higher impression rates in the coming months. Additionally, we welcomed the RTAA’s new
Director of Marketing, April Conway, APR, MBA.
Notable metrics from March 16 – April 15 include:
• Paid Campaigns: Conversions (the total number of times a user completed a desired action after
clicking on an ad) decreased compared to the outstanding rates of last period, however held close to
desired benchmarks. Overall ad impressions held steady, increasing by 4.2% compared to last period
earning more than 877,000 impressions through digital media, programmatic and social media ads.
• Organic Social Media: Overall, social media content saw a 13.3% increase in impressions
compared to the previous period (with high-performing posts seen more than 70,000 times),
accompanied by a steady rise in followers across all platforms. Notably, Facebook, Instagram, X and
LinkedIn collectively totaled 39,500 followers, marking a 1% increase across platforms.
Page 7 of 8
During this period, posts across platforms saw significant audience engagement, particularly on
Facebook, which experienced a noteworthy 149% surge in interactions including likes, comments and
shares. This uptick can be attributed to timely and resonant content, such as April Fools’ Day posts
and updates on air service, the Ticketing Hall/MoreRNO, and feel-good posts.
• Website: The website saw decreases across the board, possibly indicating a slowdown in activity
compared to the spikes seen (due to winter weather and spring break bookings) in the previous
period. Specifically, traffic to the Arrivals and Departures page decreased by 51% compared to the
previous period.
On the other hand, during this period, traffic to the Parking page increased by 31.6%, likely driven by
spring break travelers seeking parking availability.
• Newsletter: A new campaign was launched in March to reengage individuals that have signed up
for the newsletter in the last 12 months. As projected, open rates have begun to level out at 52%,
from the original send, this month (benchmark open rate 38%). The April newsletter heavily featured
air service and the announcement of 90,000 more seats added this summer. Additionally, there were
features on the Ticketing Hall Grand Opening and McCarthy Construction. The majority of readers
clicked the link to the nonstop destinations page, showing continued interest in our nonstop flights.
Media and Public Outreach
The team issued a press release announcing the approval and financial close of the Ground
Transportation Center and a media alert introducing the newest concessions addition of Liberty Toast to
the C Concourse. Additionally, the team staffed interviews with President/CEO on Nevada Newsmakers,
Face the State and Airport Improvement Magazine to engage media in MoreRNO program updates.
Page 8 of 8
Government Affairs
FAA authorization was extended by Congress until May 10, but faces at least another short-term
extension of about a week. There has been a bipartisan, bicameral compromise on all germane topics,
but since this will likely be one of the last pieces of legislation done before the November election, all
sorts of amendments are being proposed that the Senate must process. RTAA has signaled to our
delegation that we are in support of the compromise provisions being proposed and urged them to pass
this measure as quickly as possible. The compromise language includes several helpful provisions for
RTAA.
The team continues to onboard Van Scoyoc Associates (VSA) as our federal lobbyist and has had several
productive meetings about how to uncover additional federal funding and policy opportunities.
We also hosted our lead transportation staff contact from Senator Cortez Masto’s office while he was in
town for a briefing and tour of the new ticketing hall and all MoreRNO projects.
Art
Staff has been busy working on the next 1% for public art projects in HQ, GTC and New Gen A&B. We
are energized by the community’s overwhelmingly positive reaction to
Repeated Refrains
in the ticketing
hall. Accolades continue to come in, most recently, at two Chamber events - Leadership Reno-Sparks and
the Business Expo. The Art Advisory Committee is scheduled to meet this summer in preparation for
multiple public art solicitations starting in late 2024.
The depARTures gallery has officially made the transition from Nevada Arts Council’s exhibition,
Find Your
Folklife
, to the 16
th
Annual Employee Art Show. 67 artists submitted 85 works that spanned a variety of
mediums including paintings, works on paper, photography, sculptures, mixed media and new this year,
quilts. The show will run through Aug. 12 with an awards reception taking place June 5. Big thanks to the
National Arts Program for sponsoring the exhibit. Next up – Burning Man and their community-driven
endeavors through the Burning Man Project including Burners Without Borders, Fly Ranch and the Global
Grants program.
RNO is again a host location for Artown 2024! Three performances will take place at the ski statue during
the month of July including High Desert Harmony, The Note-ables and for the first time, a dance
ensemble from the India Arts and Culture Center.
Board Memorandum
05/2024-16
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Authorization for the President/CEO to execute a one-year contract for the Reno-
Tahoe Airport Authority employee workers’ compensation insurance coverage for
Fiscal Year 2024-2025, with Starr Aviation, in the amount of $145,367
STAFF RECOMMENDATION
Staff recommends approval of the Proposed Motion stated below.
BACKGROUND
State law requires that each employer provide insurance coverage for on-the-job injuries. The
RTAA’s current fully insured workers’ compensation insurance policy provided through Starr
Aviation will expire on June 30, 2024.
The RTAA, through a competitive request for proposal process, has retained Arthur J. Gallagher
Risk Management Services, Inc. (AJG) as the Broker of Record.
AJG provides the following insurance broker services: (1) Obtain workers’ compensation
insurance coverage bids from insurance carriers authorized to do business in the State of Nevada;
(2) receive and analyze the received proposals; (3) evaluate the commitment and financial
stability of the proposers; (4) review proposals for accuracy and conformity to specified
coverages; (5) compare proposed policy language to the prior year and advise the Authority of
changes in policy form or coverage; (6) recommend policy coverage or language changes as
necessary; and (7) request modifications from the insurers upon RTAA concurrence.
DISCUSSION
In March 2024, AJG began marketing the RTAA FY 2024-2025 employee workers’
compensation insurance coverage. This effort successfully obtained the following quotes:
FY 2024-2025 Workers’ Compensation Insurance Bid Responses
Carrier
FY 2023-2024
Premium
FY 2024-2025
Premium Quote
Annual Dollar /
Percentage Difference
Starr Aviation
$177,213
$145,367
-$31,846 / -18.0%
Old Republic
N/A
$151,799
-$25,414 / -14.3%
Global Aerospace
N/A
Declined to quote
N/A
Beacon Aviation
N/A
Declined to quote
N/A
USAIG
N/A
Will be exiting the market
N/A
QBE Aviation
N/A
Has exited the market
N/A
AIG Aerospace
N/A
Has exited the market
N/A
Page 2 of 2
As indicated in the chart on the previous page, AJG received two quotes, including one from our
current carrier, Starr Aviation; while two carriers declined to submit a quote based on the
potential for high police and fire claim exposures due to Nevada’s generous heart & lung
statutes. The other three carriers will or have exited the market altogether.
The quote provided by Starr Aviation represents a sizeable decrease over the current premium
and is the most competitive. In addition, based on the RTAA’s continued success in safety and
loss control, Starr Aviation is offering a sliding scale dividend plan which could potentially
credit us back a portion of our premium based on claim costs. Therefore, staff is recommending
continuing the RTAA’s coverage with Starr Aviation.
Founded by Cornelius Vander Starr in 1919, Starr is one of the world’s fastest growing insurance
organizations, providing property, casualty and accident coverage insurance to almost every
imaginable business and industry in virtually every part of the world.
FISCAL IMPACT
The FY 2024-2025 premium quote from Starr Aviation totals $145,367, an 18% decrease from
FY 2023-2024. A portion of this decrease is due to the RTAA’s lower experience modification
(e-mod) factor (.75 to .72). This reduction indicates that RTAA claim costs are continuing to
trend lower than previous fiscal years when compared to organizations of comparable size and
function to the RTAA. This lower experience modification factor also reflects the on-going
efforts of the management team to keep claims costs down through safe work practices, and by
involving injured workers in the RTAA’s modified duty return to work program. In addition,
Starr Aviation has provided almost $13,000 in premium discounts and a dividend plan which
could potentially credit us back a portion of our premium based on FY 2024-2025 claim costs.
The FY 2024-2025 budget will be adjusted at mid-year to reflect this lower premium.
COMMITTEE COORDINATION
Finance & Business Development Committee
PROPOSED MOTION
“It is hereby moved that the Board of Trustees authorizes the President/CEO to execute a one-
year contract with Starr Aviation to provide workers’ compensation insurance for RTAA
employee on-the-job injuries for Fiscal Year 2024-2025, in the amount of $145,367.”
Board Memorandum
05/2024-17
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Authorization for the President/CEO to execute a five-year contract for the operation
and maintenance of the Baggage Handling System to Daifuku Services America
Corporation in accordance with requirements of the original manufacturer and the
Transportation Security Administration with the five-year total for all services in the
amount of $8,231,595.73
STAFF RECOMMENDATION
Staff recommends that the Board adopt the motion stated below.
BACKGROUND
The Reno-Tahoe Airport Authority (RTAA owns, maintains, and responsible for the functional
operation of the integrated in-line explosion detection and baggage handling system (BHS). The
system includes the ticket counter take-away belts, conveyors, sorting devices and baggage
carousels. Specifically, the system consists of 1.17 miles of conveyors, 441 Variable-Frequency
Drive (VFD) electric motors, motor control panels (MCP), integrated push type baggage diverters,
vertical sorter devices, one (1) Vaculex baggage vacuum lift assistance device, and a very
sophisticated Programmable Logic Control (PLC) computer system that controls the timing and
operations of the belt system. The value of the BHS system is in excess of $20,000,000 including
$401,458 in parts inventory.
In order to properly maintain the investment and to ensure maximum operational availability and
efficiency of such a complex integrated conveyor system, a contract with a maintenance service
provider has been required to perform the preventive maintenance and oversee the operation of the
in-line system. Additionally, the maintenance service provider is responsible for the housekeeping
duties for the BHS conveyor system in the Baggage Make-Up (BMU) matrices.
The contractor is required to be on site and managing the system on a twenty-four (24) hour per
day, seven (7) days per week schedule. The contractor oversees the operation utilizing the Central
Control Room (CCR) that houses the computer control stations for the conveyor systems and the
associated Closed-Circuit Television (CCTV) system that provides a visual tool for monitoring the
bags as they move through all three of the conveyor and screening matrices. They provide
manpower sufficient to respond to any baggage jams in the system having jams cleared within two
(2) minutes and are required to notify the RTAA Facilities and Maintenance Department (FMD)
within five (5) minutes if any system and/or component malfunction failures occur as well as
provide the FMD with a report of the anticipated repair time. A variety of daily, weekly, and
monthly reports detailing the operations, availability, and accuracy of the BHS is provided. The
Page 2 of 3
reports are used to establish the contractor’s ability to meet or exceed the performance
requirements of the system and the contractor’s monthly payment are subject to penalties if the
criteria are not met.
The contractor is required to survey the system and provide the RTAA with a detailed contingency
plan for any type of system or system component failure to ensure continuous and minimally
interrupted baggage delivery to the outbound pick-up carousels. The contractor trains on each type
of contingency scenario to ensure that their personnel are ready to react should such a failure occur.
The RTAA provides a variety of different types of BHS equipment components for the contractor’s
use in live, hands-on preventive maintenance training. The contractor is further required to
maintain training on the equipment should it be needed for integration into the BHS.
The contractor is responsible for procuring and maintaining minimum required stock levels of
BHS parts inventory. They are required to utilize the RTAA’s IBM Maximo Computerized
Maintenance Management System (CMMS) to monitor the preventive maintenance program, parts
inventory, and warranties of the system. The contractor maintains the computer database with all
pertinent information for the Preventive Maintenance (PM) work order tasks, parts inventory, and
BHS asset information. The RTAA has access to the BHS Maximo program to monitor the
contractor performance and preventive maintenance program’s status and compliance.
DISCUSSION
The Request for Proposals (RFP 23/24-14) was released and published on February 2, 2024, in the
Reno-Gazette Journal (RGJ) and posted on the RTAA’s website, and on the Nevada Government
eMarketplace (NGEM) website. Three prospective proposers attended the non-mandatory pre-
proposal meeting held on February 13, 2024. Four proposals were received and opened on March
11, 2024. The following table outlines the annual maintenance costs submitted by each proposer:
Company
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Daifuku
$1,504,141.26
$1,567,463.48
$1,634,058.74
$1,716,472.67
$1,809,459.58
$8,231,595.73
ERMC
$1,404,547.46
$1,394,238.83
$1,430,983.83
$1,475,564.52
$1,514,547.28
$7,219,881.93
JSM
$1,749,996.00
$1,802,496.00
$1,856,580.00
$1,912,284.00
$1,969,644.00
$9,291,000.00
Oshkosh
$1,876,900.00
$1841,763.00
$1,898,586.00
$1,959,557.00
$2,011,461.00
$9,588,267.00
A selection committee comprised of the Southwest Airline’s Station Manager, the United Airline’s
Station Manager, and RTAA staff evaluated all proposals received.
The evaluation criteria considered critical areas of the qualifications of the proposing firms,
including their proposed on-site operations, maintenance and management team, the firm’s
detailed work plan for meeting the program requirements, references, and finally, the contract
costs. The panel was unanimous in their evaluation of Daifuku Services America Corporation
being the best choice of the four proposals. The panel recommended a direct selection of DSAC
to the Board whose proposal was most advantageous to the RTAA.
Key advantages from the DSAC proposal:
Although price was not the only consideration, DSAC submitted the second lowest overall
cost proposal.
Page 3 of 3
DSAC has 30 years of experience in the operation and maintenance of complex airport
baggage handling systems.
DSAC has 20 locations in the United States for backup support.
Specific experience at other airports with similar systems include Detroit International, Los
Angeles International, Phoenix International, San Antonio International, Sacramento
International, and John Glenn International.
Strength of reference checks.
Excellent proposed procedures for daily operation, preventative maintenance, and handling
system emergencies.
Successful management of the RTAA BHS system for the last fifteen years meeting all
contractual requirements and expectations.
Excellent working relationship with the RTAA staff.
The request is to approve the full five-year contract agreement for a total of $8,231,595.73. Each
contract year’s pricing is inclusive of the required annual Brock Solutions software connection for
programmable logic control support and site visits. The five-year term agreement will expire June
30, 2029.
FISCAL IMPACT
Funding for the first year of this contract is included in the requested Fiscal Year 2024-25 Building
Maintenance’s Operating and Maintenance budget that will be presented for approval at the May
Board meeting. The first-year budgeted amount for the maintenance agreement is $1,504,141.26.
The first year’s maintenance agreement represents 65% of the total budget associated with the
BHS of $2,312,641 in Fiscal Year 2024-25. The overall budget also includes $65,000 for
replacement parts associated with the system. Subsequent years funding will be in the Building
Maintenance’s Operation and Maintenance budget.
The entire Baggage Handling System budget of $2,312,641 is 100% reimbursable from the airlines
through a per bag fee calculation as outlined in the current year Master Fee Resolution.
COMMITTEE COORDINATION
Finance & Business Development Committee
PROPOSED MOTION
“Move to authorize the President/CEO to execute a five-year contract for the operation and
maintenance of the Baggage Handling System to Daifuku Services America Corporation in
accordance with requirements of the original manufacturer and the Transportation Security
Administration the five-year total for all services in the amount of $8,231,595.73.”
Board Memorandum
05/2024-18
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Authorization for the President/CEO to execute a professional services agreement for
design services for the General Aviation East Apron and Taxilane Reconstruction
Project at the Reno-Tahoe International Airport, with Kimley-Horn and Associates,
Inc, in the amount of $437,080
STAFF RECOMMENDATION
Staff recommends that the Board adopt the motion stated below.
BACKGROUND
The Reno-Tahoe International Airport General Aviation East project area is located on the east
side of the airfield adjacent to Rock Boulevard. The General Aviation East project area is
developed and is approximately 9 acres. It is bordered to the west by Taxiway Charlie, north by
the fuel farm, south by East lighting Vault and east by Rock Boulevard.
The General Aviation East Apron is a non-exclusive use apron with taxilanes that were previously
under a long-term lease with a fixed base operator which has expired and reverted to the Airport
Authority. The apron has not been rehabilitated in over 20 years and has exceeded its useful life.
The Pavement Condition Index (PCI) for the pavement in this area ranges from 5 (failed) to 24
(serious) based on the 2022 Pavement Maintenance report. The pavement requires significant
maintenance to mitigate the pavement raveling and creating foreign object debris (FOD).
The General Aviation East Apron and Taxilane Reconstruction Project has been deemed necessary
to the General Aviation Airport Operations. There are over 60 general aviation tenants using the
area and lease nearby hanger space . Additionally, several business operate out of this area
including Grandview Aviation, which provides medical flights, Stellar Aviation, and JSX which
serves approximately 300 passengers weekly.
DISCUSSION
A Request for Qualifications (RFQ) for design services was publicly advertised on October 13,
2023, and Statements of Qualifications (SOQ) were received on November 16, 2023, from the
following firms:
• AtkinsRéalis
• Kimley Horn & Associates
Page 2 of 3
An evaluation committee comprised of RTAA staff reviewed the submittals and determined
Kimley-Horn as the most qualified firm for the project. The evaluation was based on the
qualifications and experience requirements stipulated in the RFQ of similar type projects.
Kimley-Horn has extensive experience in airfield pavement design projects at Commercial and
General Aviation airports across the United States. The Kimley-Horn design team also includes
sub-consultants MAPCA Surveying and Corestone (geotechnical engineer). Additionally, Kimley-
Horn conducts in-house electrical design, airfield analyst and pavement design as part of their core
services. Kimley-Horn proposes to meet the minimum Disadvantage Business Enterprise (DBE)
goal of 11.5% with Corestone and MAPCA both being DBEs. Members of Kimley-Horn’s design
team have performed multiple projects at the Reno Stead Airport in recent years.
The Professional Services Agreement for the project tasks include field survey, geotechnical
investigation, hydrology conditions, existing storm drain evaluation, construction phasing,
operational plan, client review, cost estimates, development of the design and bid packages.
Outreach will be conducted with the RTAA Stakeholders including the Commercial Business,
Planning, Engineering, Operations, Airfield Maintenance and the airportuser groups.
The stakeholder meetings will generate information to identify project constraints and operational
criteria to be utilized in the basis of design. The construction is expected to begin in early 2026.
The construction schedule and phasing plan will be developed during the design process.
Upon completion of the design, the construction documents will be issued for bids and submitted
to the FAA for approval. The construction contract will be brought separately for Board approval
at a later date and is expected to be funded under a new AIP grant. The AIP construction grant will
include construction, construction administration, construction management, and administration
services as well as project close out.
The table 1 is an estimate of the preliminary schedule:
Table 1 – Preliminary Schedule
Activity
Date
Board Approval
May 23, 2024
FAA AIP Grant Award
June 1, 2024
Notice to Proceed
June 2, 2024
Design
June 2 – December 1, 2024
Bid Package Complete
January 1, 2024
FISCAL IMPACT
The PSA for design services in the amount of $437,080 is funded by FAA AIP pending grant.
The FAA eligible share is $417,958 (93.75%) and the RTAA share is $27,864 (6.25%).
An Airport Improvement Program (AIP) Grant has been submitted to the FAA.
Page 3 of 3
Table 2 – Design Professional Services Estimate at Completion
Airside Design
Other Direct
Costs
Estimate At
Completion
$437,080
$8,742*
$445,822
* Other Direct Costs include but are not limited to: reimbursable agreement with the FAA,
administrative costs, advertising, printing, permits and miscellaneous fees.
The Estimate at Completion (EAC) is a preliminary estimate for budgetary purposes only.
COMMITTEE COORDINATION
Planning and Construction Committee
PROPOSED MOTION
“Move to authorize the President/CEO to execute Professional Services Agreement for design of
the General Aviation East Apron and Taxilane Reconstruction Project at Reno-Tahoe
International Airport (RNO), with Kimley-Horn and Associates, in the amount of $437,080.
Board Memorandum
05/2024-19
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Adoption of the Reno-Tahoe Airport Authority’s fiscal year (FY) 2024-25 Budget
(July 1, 2024, through June 30, 2025)
STAFF RECOMMENDATION
Staff recommends that the Board adopts the Fiscal Year 2024-25 budget of the Reno-Tahoe
Airport Authority (RTAA).
PURPOSE
The purpose of this action is to adopt the RTAA’s annual budget for FY 2024-25, representing the
period of July 1, 2024, through June 30, 2025. Pursuant to State law, the budget is to be considered
by the Board in a noticed public hearing. The notice was published in the Reno Gazette-Journal
on May 14, 2024. In accordance with State law, the Board must adopt the budget on or before June
1, 2024. Accompanying this memorandum is the RTAA’s proposed budget for FY 2024-25 for
consideration and adoption by the Board of Trustees.
BACKGROUND
The budget is RTAA’s annual fiscal plan of revenues and expenses to fund operations and the
annual capital improvement program for the Reno-Tahoe International Airport (RNO) and Reno-
Stead Airport (RTS) as owned and operated by RTAA.
On April 23, 2024, the Board held a workshop on the proposed budget. Staff presented an overview
of the proposed budget, including passenger traffic, landed weight, revenue, and operating expense
estimates for the upcoming fiscal year to begin on July 1, 2024. The presentation included
information on fixed assets and capital projects proposed for next fiscal year. The FY 2024-25
budget and airline rates and charges were also discussed with the Airline Airport Affairs
Committee as required by the RTAA’s airline agreement with signatory airlines.
DISCUSSION
Airline traffic at RNO has made a tremendous recovery following the COVID pandemic. We
celebrated new records of enplaned passengers in some months of FY 2023-24. However, the
updated FY 2023-24 traffic forecast has shown signs of a slowing growth trend with a reduction
in both landed weight and passenger traffic. Some of the carriers exited the Reno market
(Allegiant, Frontier, New Pacific), while new airlines started operating at RNO – Spirit, Sun
Country. The existing airlines are still facing operational challenges primarily caused by
Page 2 of 14
equipment shortages and safety concerns. As we look at the airline traffic for next fiscal year, we
are cautiously optimistic. Our airline partners are forecasting increased landed weight when
compared to the current year forecast and expecting the passenger traffic to stabilize next year.
RTAA staff is currently in consultation with airlines on the FY 2024-25 traffic forecast and will
continue to closely monitor airline traffic changes and the impact this may have on revenues.
FY 2024-25 is the second year of the new ten-year Airport-Airline Use and Lease Agreement
(AAULA or airline agreement) with Alaska Airlines, American Airlines, Delta Air Lines, Federal
Express (FedEx), Southwest Airlines, United Parcel Service (UPS), and United Airlines referred
to as Signatory Airlines. The AAULA defines the premises leased by Signatory Airlines and
provides the terms and conditions under which they operate at RNO. The airline agreement sets
forth the rate methodology by which Signatory Airlines pay for the facilities and services they use.
The MoreRNO capital program is expected to make significant progress in FY 2024-25 with the
continued design process of the New Gen A&B concourses, South Remain Overnight (RON) pad,
Central Utility Plant (CUP), and New Headquarters (HQ). Upon Board approval construction is
also expected to start next year on the South RON, CUP, and HQ. Funding for the MoreRNO
program is from federal grants, passenger facility charges (PFC), airline rates and charges, RTAA
cash, and airport revenue bonds. Staff is currently anticipating issuing bonds in August 2024.
RTAA has recently entered into a ground lease and a public-private partnership agreement with
ConRAC Solutions to build a new ground transportation center (GTC). The project will be funded
exclusively by customer facility charges (CFCs) paid by rental car customers. All CFCs are
managed by a third-party trustee and RTAA no longer receives those revenues from the rental car
companies. A $150,000 annual administrative fee will be paid to RTAA for the duration of the
agreement.
The proposed budget is balanced, includes necessary cost increases, higher revenues, and required
adjustments based on various contractual obligations. Working closely with the Executive Team
we are continuing to closely monitor airline traffic, revenues, and expenses and are prepared to
make necessary adjustments if the current forecast does not materialize.
FISCAL IMPACT
As discussed in the attached FY 2024-25 Budget of the Reno-Tahoe Airport Authority.
COMMITTEE COORDINATION
Finance and Business Development Committee
PROPOSED MOTION
“Move that the Board of Trustees adopts the budget of the Reno-Tahoe Airport Authority for Fiscal
Year 2024-25 as presented.”
Page 3 of 14
FY 2024-25 PROPOSED BUDGET
Summary
The FY 2024-25 proposed budget includes total revenues of $105.485 million to fund airport
operating expenses, debt service, equipment, and capital improvements. This section provides a
financial overview of the proposed FY 2024-25 budget and key metrics.
Key Metrics
The revenue forecast for next year assumes 2.415 million enplaned passengers, a 3.3% decrease
from the current year budget, and 1.9% increase from the updated forecast. The decrease in
enplaned passengers is due to the exit of some carriers from the RNO market, downsizing of
equipment by exiting carriers, and a lower load factor assumption.
Total Revenues
Total airport revenues, composed of operating and non-operating revenues, forecasted for FY
2024-25 are $105.485 million, a $2.373 million or 2.2% decrease from the FY 2023-24 adopted
budget. Total revenues also include federal stimulus funds.
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change % Change
Operating Budget
Revenues 66,493,459$ 85,456,219$ 85,208,518$ 88,408,803$ 2,952,583$ 3.5%
Expenses (55,842,097) (65,144,750) (65,111,301) (68,668,035) (3,523,285) 5.4%
Revenues over Expenses 10,651,362 20,311,469 20,097,217 19,740,768 (570,702) (2.8%)
Other Sources (Uses)
Property, Plant and Equipment (1,667,829) (894,962) (920,911) (702,657) 192,305 (21.5%)
Debt Service (400,000) (1,110,519) (910,609) (1,915,560) (805,041) 72.5%
Federal Stimulus Funds 1,520,000 1,160,094 960,184 - (1,160,094) (100%)
Interest Income 2,899,224 1,976,400 2,778,700 2,696,900 720,500 36.5%
Other Non-Operating Revenue 300,994 298,400 300,000 302,900 4,500 1.5%
Total Other Sources (Uses) 2,652,389 1,429,413 2,207,364 381,583 (1,047,830) (73.3%)
Net Sources over Uses 13,303,751 21,740,882 22,304,581 20,122,350 (1,618,532) (7.4%)
Other Revenues:
Passenger Facility Charges 8,372,017 9,394,600 9,167,900 9,076,700 (317,900) (3.4%)
Customer Facility Charges 7,863,374 9,573,000 11,218,500 - (9,573,000) (100%)
Total Other Sources 16,235,391 18,967,600 20,386,400 9,076,700 (9,890,900) (52.1%)
Capital Budget 24,002,427 58,384,588 58,384,588 100,139,053 41,754,465 71.5%
Budget to Budget
Budget Category
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change % Change
Enplaned Passengers 2,229,254 2,496,862 2,369,767 2,414,737 (82,125) (3.3%)
Sig. Cost Per Enplanement 6.33$ 9.65$ 10.17$ 10.93$ 1.28$ 13.3%
Landed Weight (000's) 3,100,328 3,506,091 $3,249,801 3,378,382 (127,709) (3.6%)
Landing Fee (Signatory) 3.79$ 3.99$ 4.26$ 4.19$ 0.20$ 5.0%
Landing Fee (Non-Signatory) 3.79$ 4.59$ 4.90$ 4.82$ 0.23$ 5.0%
T erminal Re nta l Rate ( Av g. ) 34.47$ 142.44$ 143.68$ 156.40$ 13.96$ 9.8%
Debt Service Coverage 53.49 27.92 34.79 16.47 (11.45) (41.0%)
Budget to Budget
Description
Page 4 of 14
Operating Revenues
Of the total revenues, $88.409 million are operating revenues derived from airline and non-airline
revenue sources. Operating revenues are forecasted to increase $2.953 million or 3.5% from the
FY 2023-24 adopted budget. Operating revenues are summarized in two major categories:
• Airline revenues – generated from landing fees and terminal building rents, are forecasted
to be $35.656 million, approximately 40% of the total operating revenues. The 4.2%
increase from the current fiscal year is primarily due to the increase in the cost of operating
and maintaining the Airfield and Terminal cost centers resulting in higher landing fees and
terminal rental rates. The addition of debt service related to the ticketing hall expansion
project also contributed to the rate increases.
• Non-airline revenues – generated from public parking, car rental, retail, food and
beverage, advertising, gaming, and other concessions represent $52.753 million, or
approximately 60% of total operating revenues. The 3.0% increase from the FY 2023-24
budget is primarily due to ground transportation and land rental revenues.
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change
% Change
Operating Revenues:
Airline Revenues 17,989,194$ 34,223,253$ 34,211,506$ 35,655,792$ 1,432,539$ 4.2%
Non-Airline Revenues 48,504,266 51,232,966 50,997,012 52,753,011 1,520,044 3.0%
Total Operating Revenues 66,493,459 85,456,219 85,208,518 88,408,803 2,952,583 3.5%
Budget to Budget
Budget Category
Page 5 of 14
Airline Rates and Charges
Airline rates and charges primarily refer to landing fees, terminal rents, and baggage handling fees
established annually by RTAA. The rates and fees are calculated to recover budgeted costs to
operate and maintain the airfield, terminal facilities, and the baggage handling system (BHS). At
the end of the fiscal year, a true up is performed to account for the difference between actual costs
and the budgeted rates and charges in accordance with the airline agreement between RTAA and
seven signatory airlines.
Landing Fee Calculation
Landing fees are charged to passenger and cargo carriers for each aircraft landing based on the
aircraft’s maximum gross landed weight. RTAA currently recovers 100% of its costs of operating
and maintaining the airfield through landing fees. The Landing Fee rate is calculated by dividing
(i) the total requirement (net cost) of the airfield by (ii) the total landed weight of Signatory
Airlines. Non-signatory airlines pay a 15% premium for the landing fee rate compared to Signatory
Airlines. The forecasted total landed weight of 3.378 million thousand pounds is a 3.6% decrease
from the current year budget.
Demand for travel through RNO is expected to remain relatively strong in FY 2024-25 with landed
weight to exceed the current year updated traffic forecast. Landing fees are forecasted to increase
to $4.19 per thousand pounds for Signatory Airlines and $4.82 for non-signatory airlines. The new
rates represent a 5.0% increase from the current year budget due to higher costs associated with
operating and maintaining the airfield and the 3.6% reduction in the landed weight forecast for FY
2024-25. Also, federal stimulus funds have been fully committed to RTAA capital projects and
are no longer available to pay for operating expenses.
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change % Change
Operating Expenses 12,964,388$ 14,463,446$ 14,298,462$ 14,175,962$ (287,483)$ (2.0%)
Operating Reserve 457,788 266,897 266,897 122,377 (144,521) (54.1%)
Fixed Assets/Equipment 511,398 240,407 255,559 238,004 (2,403) (1.0%)
Capital Projects 57,160 - - 516,180 516,180 100%
Amortization of Capital Items - 697,355 696,815 634,458 (62,897) (9.0%)
Less: Federal Stimulus (1,120,000) (300,000) (300,000) - 300,000 (100%)
Less: Non-Signatory Landing Fees - (1,672,489) (1,569,695) (1,283,952) 388,537 (23.2%)
Less: Airfield Revenues (1,133,856) (1,151,625) (1,268,915) (1,364,311) (212,685) 18.5%
Total Requirement (A) 11,736,878 12,543,990 12,379,123 13,038,718 494,728 3.9%
Total Landed Weight 3,100,328 3,506,091 3,249,801 3,378,382 (127,709) (3.6%)
Signatory Landed Weight (000s) (B) 2,795,471 3,141,595 2,907,820 3,111,919 (29,676) (0.9%)
Sig. Landing Fee Rate Per (000s) (A/B) 4.20$ 3.99$ 4.26$ 4.19$ 0.20$ 5.0%
Non-Signatory Landing Fee Rate (15%) 4.59$ 4.90$ 4.82$ 0.23$ 5.0%
Airfield Cost Center
Budget to Budget
Page 6 of 14
Terminal Rent Rate Calculation
Airline terminal rentals reflect recovery of terminal costs allocated to airline occupied facilities,
with total facility costs divided by airline rentable square footage. The average terminal rental rate
is calculated by applying the total required cost to operate and maintain terminal facilities, plus
debt service, capital improvement projects, and amortization of capital items, minus 50% of
Gaming Concession and In-Terminal Concession revenues, divided by the total airline rentable
terminal space. The proposed average terminal rental rate is $156.40, a 9.8% increase from the FY
2023-24 budget. This increase is due to the higher cost to maintain and operate the Terminal
building, and the introduction of debt service related to the ticketing hall expansion project.
Baggage Handling System (BHS) Fee Calculation
The baggage handling fee is meant to recover the operating, maintenance, and capital costs
allocated to the BHS cost center, which now include amortization of capital items. RTAA manages
the BHS through a service contract with a specialized vendor for the ongoing maintenance of the
system used by the airlines. RTAA establishes a rate per checked piece of luggage based on a net
cost recovery formula. The BHS signatory fee is forecasted to be $1.62 per bag and $1.78 per bag
for non-signatory airlines which pay a ten percent premium per the airline agreement. The new
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change % Change
Operating Expenses 23,417,804$
27,730,434$ 27,838,835$ 29,447,538$ 1,717,104$ 6.2%
Debt Service - - - 1,665,560 1,665,560 100%
Other Debt Service - 250,425 250,425 - (250,425) (100%)
Debt Coverage -$ - - 166,556 166,556 100%
Operating Reserve 476,149 511,716 511,716 254,211 (257,505) (50.3%)
Fixed Assets/Equipment 502,906 342,333 348,279 282,945 (59,388) (17.3%)
Capital Projects 253,566 577,838 577,838 84,480 (493,358) (85.4%)
Amortization of Capital Items - 345,586 345,586 598,949 253,363 73.3%
Less: Gaming Concession (50%) - (699,100) (710,900) (724,400) (25,300) 3.6%
Less: In-Terminal Concessions - (4,421,517) (4,294,420) (4,636,712) (215,194) 4.9%
Less: Airline Reimbursements (364,192) (344,350) (361,600) (350,900) (6,550) 1.9%
Total Requirement 24,286,232 24,293,365 24,505,759 26,788,228 2,494,863 10.3%
Terminal Square Footage (SF) 262,114 170,553 170,553 171,275 722 0.4%
Average SF Terminal Rental Rate 92.66$ 142.44$ 143.68$ 156.40$ $13.96 9.8%
Signa tory Airline Allocated Cos t 11,698,900 17,545,300 17,698,100 19,377,800 1,832,500 10.4%
Less Revenue Sharing Transfer (7,347,400) - - - - -
Net Terminal Requirement 4,351,500 17,545,300 17,698,100 19,377,800 1,832,500 10.4%
Signa tory Airline Lea s e d SF 126,256 123,177 123,177 123,899 722 0.6%
Signa tory Airline T e rm ina l Rate SF 34.47$ 142.44$ 143.68$ 156.40$ 13.96$ 9.8%
Budget to Budget
Terminal Cost Center
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change % Change
Operating Expenses 2,063,279$ 2,093,553$ 2,093,553$ 2,406,541$ 312,988$ 15.0%
Operating Reserve 36,666 38,633 38,633 20,775 (17,858) (46.2%)
Less: TSA Reimbursements (69,694) (45,240) (65,000) (45,900) (660) 1.5%
Less: Airline Reimbursements (148,548) (194,300) (169,300) (155,300) 39,000 (20.1%)
Total Requirement 1,881,704 1,892,646 1,897,886 2,226,116 333,470 17.6%
Signatory Airline Bags Processed 1,349,877 1,371,948 1,308,648 1,376,911 4,963 0.4%
Signatory Airline Rate per Bag 1.39$ 1.38$ 1.45$ 1.62$ 0.24$ 17.2%
Non-Signtory Airline Rate per Bag 1.53$ 1.52$ 1.52$ 1.78$ 0.26$ 17.1%
Budget to Budget
Baggage Handling System
Page 7 of 14
rate is a 17.2% increase when compared to the FY 2023-24 budget due to a new negotiated
maintenance agreement, utility cost increases, and the reduction in passenger traffic.
Revenue Sharing Calculation
The revenue share calculation with signatory airlines is based on funds remaining after satisfying
the RTAA’s financial obligations for the year, including a $3.0 million set aside for the general-
purpose fund. The revenue share is now distributed monthly on a per enplaned passenger basis to
Signatory Airlines and applied as a credit in the billing process. There are specific debt service
coverage (DSC) requirements used in the calculation – a minimum 1.4 DSC must be met before
revenue sharing with the airlines; between 1.4 – 1.5 DSC $2/enplanement will be shared, and
above 1.5 the excess revenues are shared 50/50 between RTAA and the Signatory Airlines.
Cost Per Enplaned Passenger (CPE) – Calculated as all rates and charges paid by the airlines to
operate at RNO, divided by the forecasted number of enplaned passengers. The signatory cost per
enplaned passenger is forecasted to be $10.93, a $1.28, or 13.3% increase from the current year
budget rate of $9.65.
Non-Airline Revenues
The non-airline operating revenues forecasted in the FY 2024-25 proposed budget include
concession fees (e.g., gaming, food & beverage, retail, advertising, etc.), parking, ground
transportation, auto rental, reimbursed services, building and land rents, and other rentals. These
revenues are estimated to be $52.753 million, reflecting an increase of $1.520 million or 3.0%
from the current budget year. This overall increase is primarily attributed to higher building and
land rental revenues, and the increase in operating activity for ground handling and support
services at RNO. Consumer Price Index (CPI) rental rate adjustments were also factored in the FY
2024-25 budget.
FY 2022-23 FY 2023-24 FY 2023-24 FY
2024-25
Actual Budget Forecast Budget $ Change % Change
Airline Revenue 25,664,461$ 34,057,053$ 34,045,006$ 35,704,192$ 1,647,139$ 4.8%
Non-Airline Revenue 48,481,132 51,226,466 51,010,512 52,753,011 1,526,544 3.0%
Total Revenue 74,145,593 85,283,519 85,055,518 88,457,203 3,173,683 3.7%
O&M Expense 55,010,334 64,015,150 64,040,701 67,005,134 2,989,984 4.7%
Total Debt Service 400,000 1,110,519 910,609 1,915,560 805,041 72.5%
O&M Reserve Requirement 1,167,557 1,202,130 1,202,130 592,789 (609,341) (50.7%)
Fixed Asset 1,667,829 894,962 920,911 702,657 (192,305) (21.5%)
Capital Project 310,727 1,671,088 1,671,088 1,964,500 293,412 17.6%
Amort of Capital Items 3,455,432 3,081,081 3,030,501 3,284,031 202,950 6.6%
Special Fund 504,916 489,385 497,651 507,095 17,710 3.6%
General Purpose Fund Requirement - 3,000,000 3,000,000 3,000,000 - -
Interest Income (1,546,090) (956,000) (1,818,900) (2,668,800) (1,712,800) 179%
Federal Stimulus (1,520,000) (1,160,094) (960,184) - 1,160,094 (100%)
Total Requirement 59,450,703 73,348,221 72,494,507 76,302,966 2,954,746 4.0%
Funds Remaining 14,694,890 11,935,298 12,561,011 12,154,236 218,938 1.8%
Revenue Share per Enplaned Passenger - 2.00$ 2.00$ 2.00$ - -
Signatory Airline Enplaned Passengers 2,008,315 2,212,819 2,110,723 2,220,824 8,005 0.4%
$2 per EP Revenue Share - 4,425,637 4,221,446 4,441,648 16,011 0.4%
Net Funds Remaining after Rev. Share 14,694,890 7,509,661 8,339,566 7,712,588 202,927 2.7%
Total Airline Revenue Sharing Credit 7,347,445 8,180,468 8,391,229 8,297,900 117,432 1.4%
Amount to RTAA General Purpose Fund 7,347,445 6,754,831 7,169,783 6,856,294 101,463 1.5%
Effective Revenue Share per EP 3.66$ 3.70$ 3.98$ 3.74$ 0.04$ 1.1%
Revenue Sharing
Budget to Budget
Page 8 of 14
RNO concession revenue from security services and ground handling services is expected to
increase significantly by 161.7% and 50.7%, respectively, driven by the increase in operational
activity. Ground transportation revenues are anticipated to increase by $321,900, or 32.9% due to
the increased activity expected for Transportation Network Companies (TNCs) and higher fees.
Other terminal rents, including ground handling office/storage space, are expected to increase by
$81,600, or 7.8% due to rate adjustments. Retail revenues are forecasted to experience an increase
of approximately $104,600 or 8.5% compared to the current year budget. The significant increase
in Reno Stead land rental revenue of $341,600, or 58.4%, is primarily driven by the annual option
payment from Dermody Properties.
Despite these increases, certain revenue streams face declines, notably auto rental and auto parking
revenues impacted by the decrease of passenger traffic and change in passenger behavior. The
decrease in auto rental revenue is driven by on-airport rentals expected to generate slightly less
revenue per enplaned passenger in FY 2024-25 and the exit of Payless from RNO, resulting in an
overall loss of approximately $921,200. This is partially offset by the peer-to-peer rental revenue
increase estimated at $304,200. Auto parking is expected to decrease by $106,900, or 0.6%, due
to less passenger traffic and reduced utilization of the public parking lot in favor of TNCs. Lastly,
RTAA will no longer receive federal funds for the Law Enforcement Officer (LEO) and Canine
program, resulting in a revenue loss of approximately $436,000 for FY 2024-25.
Non-Operating Revenues
The proposed budget includes non-operating revenues of $16.593 million to be received from
Passenger Facility Charges (PFCs), federal stimulus funds, investment interest, and aviation gas
tax. PFCs are estimated to decrease by $317,900 or 3.4% from the current year budget attributable
to reduced passenger traffic and a slight decrease in the proportion of passengers paying PFCs.
Furthermore, RTAA will no longer receive CFCs revenue directly, as it will be managed by a
third-party trustee. The forecasted Federal Stimulus funds of $5.000 million are designated to fund
RTAA Capital Improvement Projects in FY 2024-25.
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget $ Change % Change
Non-Operating Revenues:
Passenger Facility Charges 8,372,017$ 9,394,600$ 9,167,900$ 9,076,700$ (317,900)$ (3.4%)
Customer Facility Charges 7,863,374 9,573,000 11,218,500 - (9,573,000) (100%)
Federal Stimulus 1,520,000 1,160,094 960,184 5,000,000 3,839,906 331%
Interest Income 2,899,224 1,976,400 2,778,700 2,696,900 720,500 36.5%
Other Non-Operating 300,994 298,400 300,000 302,900 4,500 1.5%
Total Non-Operating Revenues 20,955,609 22,402,494 24,425,284 17,076,500 (5,325,994) (23.8%)
Budget to Budget
Budget Category
Page 9 of 14
Operations and Maintenance (O&M) Expenses
The proposed budget for operating and maintenance (O&M) costs in FY 2024-25 amounts to
$68.668 million, a $3.523 million or 5.4% increase compared to the FY 2023-24 budget. The table
below outlines the RTAA's operating expenses, categorized by major expense groups.
Personnel Services – This expense category is estimated at $45.219 million, representing 65.9%
of the total O&M budget. It includes expenses related to salaries, wages, and benefits for the
RTAA's workforce consisting of 295.5 full-time equivalent (FTE) positions. The proposed FY
2024-25 personnel budget is an increase of $3.033 million, or 7.2% over the FY 2023-24 budget.
This increase is primarily attributed to the salary and wage increases per the existing bargaining
agreements and anticipated health insurance and other benefit increases. Increases in overtime pay,
shift differential, and standby pay also contributed to the higher budget. The proposed budget
includes two new positions, totaling 1.5 FTEs: an Environmental Program Manager (budgeted for
6 months) and the Chief Air Service Development Officer. Two additional FTEs were added as
part of the new MoreRNO team and will be charged to ongoing capital projects.
The unrepresented groups of Civil Service Plan (CSP) and Management employees are eligible
for a merit increase estimated at an average of 4.8% in base salary and an average of 5.6% in
performance-based incentives. The budget increase for merit and performance-based incentive
increase compared to FY 2023-24 is approximately $228,000. The International Brotherhood of
Teamsters (Teamsters) are eligible for a Consumer Price Index (CPI) increase not to exceed 2.75%
and a step increase. The proposed budget includes both a CPI and step increases, resulting in an
approximately $435,000 increase from the current budget.
Overtime pay, shift differential, and standby budgets across all RTAA departments increased by
approximately $359,000 compared to FY 2023-24. This increase includes $49,000 for the Airport
Fire Department, $96,000 for the Airport Police Department, and $214,000 for other departments
with hourly-paid staff qualified to earn these types of additional compensation.
Employee benefits, including group health insurance premiums for medical, dental, vision,
workers’ compensation, and other employer-paid benefits (except retirement contributions) are
projected to increase by approximately $392,000.
Utilities and Communications – This expense category includes costs for electricity, water, sewer,
natural gas, and telephone and data communications services for RTAA-owned facilities. These
costs are estimated to be $4.658 million, an increase of $115,400 or 2.5% from the FY 2023-24
budget. This increase is attributed largely to the telephone and data communications costs and the
increasing sewer, water, and natural gas costs.
FY 2022-23 FY 2023-24 FY 2023-24 FY
2024-25
Actual Budget Forecast Budget $ Change % Change
Operating Expenses:
Personnel Services 37,414,401$ 42,186,109$ 41,886,109$ 45,219,168$ 3,033,059$ 7.2%
Utiliites and Communications 3,962,745 4,543,050 4,543,050 4,658,400 115,350 2.5%
Purchased Services 7,861,870 9,992,704 10,195,255 11,281,164 1,288,460 12.9%
Materials and Supplies 3,234,273 3,674,957 3,686,957 2,983,930 (691,027) (18.8%)
Administrative Expenses 3,368,807 4,747,930 4,799,930 4,525,373 (222,557) (4.7%)
Total Expenses 55,842,097 65,144,750 65,111,301 68,668,035 3,523,285 5.4%
Budget to Budget
Budget Category
Page 10 of 14
Purchased Services – This expense category accounts for legal and professional services, and
specialized service contracts to maintain and repair mechanical systems and equipment. These
costs are estimated at $11.281 million, an increase of approximately $1.288 million, or 12.9% from
the FY 2023-24 budget.
The proposed increase in the budget encompasses several specific allocations:
• $439,000 will cover additional costs for maintenance of common-use equipment, fire
prevention, building inspections, hardware maintenance support, custodial services for
common-use ticket counters, and BHS services.
• $300,000 for project management related to the GTC development.
• Subscription-based software service agreements were moved from the Materials and
Supplies expense category to Purchased Services.
• $155,000 of advertising contracted services were moved from Administrative Expenses.
• Approximately $100,000 will supplement already established contracts.
Materials and Supplies – This category includes estimates to obtain needed supplies and materials,
primarily for the Facilities and Maintenance staff, to maintain all RTAA facilities and airfield. The
requested budget of $2.984 million is a decrease of $691,000, or 18.8% from the FY 2023-24
budget.
In addition to the software and advertising budget reclassification described above, the budget
decrease is also due to reductions in:
• Machinery maintenance and supplies - $30,000
• Runway taxiway lighting expenses - $41,000
• Thermoplastic markings - $55,000
• Telephone equipment and labor expenses - $20,000
• Pavement treatment supplies - $41,000
These adjustments were made based on the review of the current and prior year actual expenses.
Administrative Expenses – The administrative expenses category is used to account for training,
conference registration fees, travel, air service development, airport economic development,
conference sponsorship, airport community relations, insurance premiums, and credit card
processing fees. The budget estimate for this category of $4.525 million is a decrease of $222,600
or 4.7% from the FY 2023-24 budget.
Page 11 of 14
In addition to the budget transfers outlined above, a decrease of $92,000 is noted in the community
outreach budget related to the Air Races. These reductions are partially offset by insurance
premium increases and air service promotion budget allocations.
Property, Plant and Equipment
The Property, Plant and Equipment category includes estimated acquisition costs for assets with a
useful life exceeding one year and a cost greater than $5,000. The cost of items greater than
$500,000 are amortized over the estimated useful life of the asset and included in the rate base
paid by airline and non-airline revenues. The total proposed budget for this category is $702,700,
a decrease of $192,300 or 21.5% from the FY 2023-24 budget.
Items included in this category are as follows:
• Computer Hardware Refresh ($84,650) – replacement of existing 25% of laptops and 20%
of desktops within the organization. This is part of the RTAA refresh cycle program, which
is conducted annually to ensure the organization has access to up-to-date technology.
• Twenty (20) Camera Replacement ($80,000) – replacement of 20 security cameras and
cable supporting infrastructure that have aged beyond their life expectancy.
• Two (2) 2025 Chevrolet Tahoe Special Service Vehicle 4WD ($150,533) – These vehicles
are replacements for the Airside Operations, Operations and Public Safety vehicles due to
high mileage and operating costs.
• 2025 Chevrolet Silverado 1500 Standard Cab 4WD Pickup ($47,275) – a replacement of
the Building Maintenance vehicles due to high mileage and operating cost.
• Two (2) Hali-Brite RCM-D-L-893L-Lighted X ($55,573) – replacement of the LED Xs
that have aged and are failing. The lighted Xs are necessary to meet Part 139 regulations
and are used as markers when closing a runway.
• PEG-203EE Stallion ($89,895) – replacement of air compressor for Airport Rescue and
Fire due to the current air compressor for the SCBAs is outdated and showing signs of
wear. Furthermore, the unit's computer module is experiencing malfunctions.
• Snow Blower Modification Components ($47,000) – Purchasing components from Larue
to modify the existing snow blower. This upgrade will significantly enhance operator
flexibility, enabling them to distribute snow more evenly and reduce the formation of high
snow piles on the airfield, which can affect aircraft operations and may not comply with
Advisory Circular recommendations.
Seven (7) other assets below $40,000 are also included in the FY 2024-25 proposed budget totaling
$147,731: four (4) air respirators, four (4) 4500 psi air bottles, virtual runway camera project, 2025
Chevrolet Colorado pickup, tasers, workstations and chairs, and the new interactive employee
training.
Page 12 of 14
Debt Service
On July 14, 2022, the Board approved a non-revolving credit agreement with Wells Fargo Bank
to provide a short-term financing facility for its capital program. Funds can be drawn in any amount
as needed, up to a maximum of $50 million. RTAA is using short-term borrowing for expenses
primarily related to the MoreRNO capital program. As of February 2024, a total of $35.272 million
has been drawn, leaving a balance of $14.728 million available for future capital financing needs.
Repayment of a portion of the drawn funds, along with interest and fees, is from federal stimulus
funds.
As we move forward with the design and construction of the projects included in the MoreRNO
capital program, staff intends to issue airport revenue bonds to pay for a portion of the project cost.
Bond issuance is currently planned for August 2024. The FY 2024-25 budget includes $1.666
million debt service related to the expansion of the ticketing hall.
Capital Improvement Projects
The proposed program of capital improvement projects reflects a total budget of $100.139 million
for 18 projects, including the design and construction of some of the MoreRNO projects. Budget
amounts for these projects only reflect the forecasted expenses in FY 2024-25. The proposed
projects are to be funded with federal grants, PFC, airport bonds, and internal funds generated
from airline and non-airline revenue sources. For the purpose of the airline rates and charges
calculation, projects with a cost greater than $500,000 are amortized over the estimated useful life
of the asset.
Descriptions of the proposed capital projects are as follows:
• New Gen A&B Design and Pre-Construction ($15,300,000) – the continuation of the design
of the New Gen A&B projects through completion, estimated at 2027-2028. The budget
reflects only work expected for the 2024-25 fiscal year. A significant portion of this project is
intended to be funded through the collection of PFCs. The project consists of four individual
projects:
o Concourse A and associated apron work (New Gen A).
o Concourse B and associated apron work (New Gen B).
o South Remain Overnight (S. RON) - expansion of the south apron.
o Central Utility Plant (CUP) - new CUP serving the concourses.
• Central Utility Plant Construction ($45,000,000) – construction of a new central utility plant
in conjunction with the New Gen A&B project. The requested budget amount only reflects
the work expected to be done in FY 2024-25. The project will be completed in FY 2025-26.
• South Remain Overnight Construction (RON) ($5,000,000) – reconstruction and expansion of
the current South RON pad parking area to the south by approximately 100 feet to
accommodate five aircraft parking spaces. Funding for this project is through federal grants
and PFCs.
• RTAA Administration and Police Headquarters Design and Preconstruction Services
($5,000,000) – design and preconstruction. The design is based on the recommendations by
Page 13 of 14
the Workspace Study prepared by H+K Architects. The design is currently in progress and
expected to be completed in FY 2024-25.
• RTAA Administration and Police Headquarters Construction ($25,300,000) – construction of
the new HQ building. The budget includes only work expected in FY 2024-25.
• Pavement Management System – Airside ($900,000) – airside pavement and maintenance
projects identified by RTAA Engineering and Maintenance staff based on the pavement
management reports and field observations that may not qualify for federal Airport
Improvement Project (AIP) grant funds. Additionally, the project will pay for the annual
Pavement Condition Index (PCI) inspections and report as required to receive FAA AIP grant
funding for airside projects.
• Base Building Roof Replacement ($122,100) – this project is for a complete roof replacement
of the Base Building. The roof size is approximately 7,200 square feet. The project will include
some masonry parapet wall repair and rebar replacement.
• General Aviation (GA) East Landside Parking Lot ($665,000) – the primary objective of this
project is the reconstruction of the landside parking lot for GA East, situated off Rock
Boulevard. The initiative aims to enhance the functionality, safety, and aesthetics of the
parking facility.
• Airfield Main Shop Alteration ($309,600) – this request is to modify/alter the existing
maintenance shop to make better use of existing space by removing walls, adding a 30X14 roll
up door, and removing two columns with structural reinforcement to accommodate the changes
to the existing structure. The post removal allows for the new wide door to be installed and
more space in the center of the building for large equipment to pull inside.
• Roof Replacement of 1600 National Guard Way ($324,360) – the project consists of
demolition and disposal of existing roofing system and light weight concrete down to existing
metal deck, mechanically attach new rigid insulation, and install new 60 mil TPO roofing
membrane, fabricate and install new 24-gauge parapet caps.
• Replace Microwave Antenna Network ($253,440) – the project consists of the upgrade and
replacement of the current Siklu microwave antennae with newer technology. The existing
equipment is approaching ten years of service.
• Taxi/TNC Relocation Ground Transportation Center (GTC) Enabling Project ($75,000) – this
project will replace existing outdated Transcore readers. This is an enabling project for the
GTC P3 development. The readers are essential to identify and track the transponders issued
to ground transportation operators.
• Reno Stead Airport (RTS) Runway 8/26 Sealing ($380,000) – the project scope is preservation
and marking renewal for the RTS Runway 8/26. The runway measures 7,600 feet in length by
150 feet in width, which is 128,000 square yards of asphalt pavement. Sealing RWY 8/26 and
Page 14 of 14
the associated require restriping will preserve the runway and enhance the existing runway
infrastructure.
• RTS Runway 14/32 Sealing ($509,553) – the project scope is preservation and marking
renewal for the RTS Runway 14.32. The runway measures 9,100 feet in length by 150 feet in
width and is 156,000 square yards of asphalt pavement. The primary objective of this project
is to address the extensive network of over 100,000 linear feet of cracks present on RWY 14/32
by crack sealing. In addition, applying a P-608 surface treatment to seal the pavement surface
will ensure the longevity and optimal condition of the asphalt pavement. These preservation
measures are intended to extend the pavement's life significantly over the next several years.
• RTS O Block Utilities ($1,000,000) – the scope of this project includes the establishment of
gas and electric utilities in the O-block area of Stead Airport to encourage the development of
new aircraft hangars.
Attached additional budget information:
• Bar Chart Reflecting Enplaned Passengers
• Total Revenues – Operating and Non-Operating
• Operating Revenues – Non-Airline Revenues
• Operations and Maintenance Expenses by Department
• Operations and Maintenance Expenses by Department by Expense Category
• RTAA Organizational Chart
• RTAA Listing of Positions by Department
EnplanedPassengers
2,149,759
1,690,171
1,231,616
2,079,807
2,229,254
2,496,862
2,369,767
2,414,737
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2,600,000
FY2018‐19Actuals FY2019‐20Actuals FY2020‐21Actuals FY2021‐22Actuals FY2022‐23Actuals FY2023‐24Budget FY2023‐24Forecast FY2024‐25Budget
Reno-Tahoe Airport Authority
FY 2024-25
ANNUAL BUDGET
Total Revenues
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget 2023-24 Budget 2023-24 Forecast
Operating revenues
Airline Revenues 17,989,194$ 34,223,253$ 34,211,506$ 35,655,792$ 4.2% 4.2%
Other Operating Revenues 48,504,266 51,232,966 50,997,012 52,753,011 3.0% 3.4%
Total Operating Revenues 66,493,459 85,456,219 85,208,518 88,408,803 3.5% 3.8%
Non-Operating Revenues
Passenger Facility Charges (PFC) 8,372,017$ 9,394,600$ 9,167,900$ 9,076,700$ (3.4%) (1.0%)
Customer Facility Charges (CFC) 7,863,374 9,573,000 11,218,500 - (100%) (100%)
Federal Stimulus 1,520,000 1,160,094 960,184 5,000,000 331% 421%
Interest Income 2,899,224 1,976,400 2,778,700 2,696,900 36.5% (2.9%)
Other Non-Operating Revenues 300,994 298,400 300,000 302,900 1.5% 1.0%
Total Non-Operating Revenues 20,955,609 22,402,494 24,425,284 17,076,500 (23.8%) (30.1%)
TOTAL REVENUES 87,449,068$ 107,858,713$ 109,633,802$ 105,485,303$ (2.2%) (3.8%)
% Change 2024-25 Budget to
Reno-Tahoe Airport Authority
FY 2024-25
ANNUAL BUDGET
Non-Airline Revenues
FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25
Actual Budget Forecast Budget 2023-24 Budget 2023-24 Forecast
Auto Parking 17,566,153$ 19,129,032$ 18,440,228$ 19,022,147$ (0.6%) 3.2%
Ground Transportation 671,811 977,700 962,351 1,299,560 32.9% 35.0%
Auto Rental 10,536,423 10,936,255 10,763,952 10,319,270 (5.6%) (4.1%)
Non-Terminal Rents (RNO) 6,669,437 7,328,258 7,210,200 7,936,691 8.3% 10.1%
Reimbursed Services 3,384,894 3,142,836 3,301,286 3,159,116 0.5% (4.3%)
Food & Beverage 2,213,720 2,221,488 2,109,093 2,224,574 0.1% 5.5%
Gaming Concession 1,442,617 1,398,243 1,421,860 1,448,842 3.6% 1.9%
Merchandising Revenue 1,139,908 1,223,500 1,279,674 1,328,105 8.5% 3.8%
Aircraft Fees 1,128,234 1,210,325 1,263,415 1,357,811 12.2% 7.5%
Reno Stead Rents 1,100,805 982,400 1,279,900 1,404,900 43.0% 9.8%
Other Terminal Rents 901,799 1,048,900 1,092,600 1,130,461 7.8% 3.5%
Advertising 753,108 831,964 735,628 900,253 8.2% 22.4%
Other Concessions 960,651 703,265 1,024,026 1,121,080 59.4% 9.5%
Miscellaneous 34,708 98,800 112,800 100,200 1.4% (11.2%)
Total Non-Airline Revenues 48,504,266 51,232,966 50,997,012 52,753,011 3.0% 3.4%
% Change 2024-25 Budget to
Non-Airline Revenues
Reno-Tahoe Airport Authority
FY 2024-25
ANNUAL BUDGET
Operations and Maintenance Expenses by Department
FY 2022-23 FY 2023-24 FY 2024-25
Actual Budget Budget $ Change % Change
Board of Trustees 129,890$ 190,095$ 188,335$ (1,760)$ (0.9%)
Legal 527,374 685,613 668,418 (17,195) (2.5%)
President/CEO 786,477 840,120 788,860 (51,260) (6.1%)
Air Service Business Develop 622,184 823,080 1,117,090 294,010 35.7%
Marketing and Public Affairs 1,937,553 2,423,291 2,397,860 (25,431) (1.0%)
Airport Economic Development 1,846,142 2,186,065 2,206,529 20,464 0.9%
Outside Properties Budget 609,068 691,421 836,888 145,467 21.0%
CFC Operating Expenses 535,537 592,600 726,301 133,701 22.6%
MoreRNO n/a n/a 471,900 n/a n/a
CONRAC n/a n/a 300,000 n/a n/a
People, Culture, & Equity 1,412,481 1,734,460 1,810,970 76,510 4.4%
Technology & Information Systems 4,168,299 5,662,431 5,327,395 (335,036) (5.9%)
Reno Stead Airport 1,123,926 1,337,000 1,408,960 71,960 5.4%
Finance Administration 1,958,399 2,230,100 2,373,260 143,160 6.4%
Contract & Procurement 734,614 815,360 874,755 59,395 7.3%
Operations & Public Safety Admin 817,789 1,044,248 872,454 (171,794) (16.5%)
Airside Operations 1,411,384 1,697,209 1,630,290 (66,919) (3.9%)
Landside Operations 2,928,063 3,201,318 3,487,119 285,801 8.9%
Airport Rescue & Fire 5,082,819 6,143,692 6,274,985 131,293 2.1%
Airport Police 4,308,398 4,967,439 5,486,750 519,311 10.5%
Airport Communications 1,596,171 1,845,405 1,994,464 149,059 8.1%
Airport Security 1,933,668 2,101,310 764,190 (1,337,120) (63.6%)
Terminal Operations 276,535 736,621 2,594,621 1,858,000 252.2%
Planning & Infrastructure 701,451 462,625 464,850 2,225 0.5%
Planning & Environmental Serv 1,016,970 1,158,999 1,381,654 222,655 19.2%
Engineering & Construction 1,318,571 1,275,949 942,395 (333,554) (26.1%)
Facilities & Maintenance Admin 377,772 447,892 443,892 (4,000) (0.9%)
Airfield Maintenance 4,750,324 5,115,647 5,368,164 252,517 4.9%
Building Maintenance & Services 9,186,083 10,308,981 10,531,695 222,714 2.2%
Baggage Handling System 2,063,279 2,093,553 2,406,541 312,988 15.0%
Non Departmental 1,384,650 1,795,226.00 1,889,850 94,624 5.3%
Customs Border Protection 197,428 198,000 216,000 18,000 9.1%
Fuel Tax Expenses 98,798 339,000 420,600 81,600 24.1%
Total Expense 55,842,097 65,144,750 68,668,035 3,523,285 5.4%
Division/Department
Budget to Budget
Reno-Tahoe Airport Authority
FY 2024-25
ANNUAL BUDGET
Operations and Maintenance Expenses by Expense Category
Board of Trustees 132,340.00$ -$ 3,100$ 3,350$ 49,545$ 320,675$
Legal 570,200 - 70,000 900 27,318 1,238,618
President/CEO 678,100 - 150 6,700 103,910 1,466,960
Air Service Business Develop 759,100 - 219,400 11,950 126,640 1,876,190
Marketing and Public Affairs 1,248,400 - 415,880 43,050 690,530 3,646,260
Airport Economic Development 1,315,300 750 808,569 8,020 73,890 3,521,829
Outside Properties Budget 195,250 293,050 324,788 3,900 19,900 1,032,138
CFC Operating Expenses - - 726,301 - - 726,301
MoreRNO 446,900 - 20,000 - 5,000 471,900
CONRAC - 300,000 - - 300,000
People, Culture, & Equity 1,436,685 - 139,310 7,200 227,775 1,810,970
Technology & Information Systems 2,105,100 615,000 2,322,147 226,300 58,848 6,764,080
Reno Stead Airport 929,600 193,100 132,810 137,950 15,500 3,514,060
Finance Administration 1,991,600 - 317,600 12,700 51,360 2,373,260
Contract & Procurement 803,600 - 31,100 10,350 29,705 2,866,355
Operations & Public Safety Admin 722,200 - 68,500 16,150 65,604 872,454
Airside Operations 1,449,800 - 108,690 35,750 36,050 2,352,490
Landside Operations 2,274,243 - 594,600 75,810 542,466 4,936,919
Airport Rescue & Fire 5,589,900 - 193,450 286,100 205,535 8,549,228
Airport Police 5,324,200 - 52,300 91,850 18,400 11,076,650
Airport Communications 1,679,800 - 268,565 40,299 5,800 7,318,664
Airport Security 652,700 - 54,400 48,225 8,865 2,443,990
Terminal Operations 2,132,350 - 375,021 78,650 8,600 3,247,321
Planning & Infrastructure 446,900 - 2,650 5,150 10,150 2,597,200
Planning & Environmental 1,028,100 - 335,969 2,500 15,085 1,828,554
Engineering & Construction 851,100 - 64,110 2,000 25,185 1,970,495
Facilities & Maintenance Admin 407,200 - 11,000 16,865 8,827 1,294,992
Airfield Maintenance 3,759,700 347,500 105,500 1,114,414 41,050 5,775,364
Building Maintenance & Services 6,494,900 2,519,000 869,013 625,797 22,985 14,291,395
Baggage Handling System 93,900 690,000 1,550,641 72,000 - 8,901,441
Non Departmental (300,000) - 484,600 - 1,705,250 1,983,750
Customs Border Protection - - 216,000 - - 216,000
Fuel Tax Expenses - - 95,000 - 325,600 420,600
Total Expense 45,219,168 4,658,400 11,281,164 2,983,930 4,525,373 68,668,035
Admin Expenses
TOTAL
Division/Department
Utilities
Materials &
Supplies
Purchased
Services
Personnel
Services
FY 2024-25
Scott Gordon
Manager of Reno-Stead
Airport
328-6573
Gary Probert
Chief Planning and
Infrastructure Officer
105.5 Positions
328-6469
Randall Carlton
Chief Finance and
Administration Officer
30 Positions
328-6432
Marty Mueller
Manager of IT Security
Alex Kovacs
Director of Finance
Tracy Caster
Manager of Accounting
Larry Harvey
Chief People, Culture and
Equity Officer
6 Positions
328-6456
Vacant
Manager of Engineering &
Construction
Art Rempp
Director of IT/ Chief Information
Officer
328-6681
Chris Cobb
Director of Facilites &
Maintenance
George Lanyon
Facilities Superintendent
Dave Derie
Airfield Superintendent
Aurora Ritter
Manager of Aeronautical
Properties
Cris Jensen
Chief Operations and Public
Safety Officer
127 Positions
Vacant
Chief of Airport Rescue
Firefighters
Ricardo Duarte
Chief of Airport Police
Brandon Mikoleit
Manager of Landside
Operations
Carrie Guedea
Manager of Airfield
Operations
Brad Erger
Manager of Commercial
Properties
Reno-Tahoe Airport Authority Board of Trustees
Natalie Brown
Chief Marketing and Public
Affairs Officer
7 Positions
328-6401
Vacant
Director of Contracts &
Procurement
Vacant
Chief Commercial Officer
9 Positions
Lissa Butterfield
Manager of Planning &
Environmental Services
Ben Carpenter
Manager of Airport
Communications
Shane Imsdahl
Manager of IT
April Conway
Director of Marketing
Janelle Conine
Manager of Terminal
Operations
Christy Wheeler
Manager of People
Operations
Vacant
Airport Emergerncy
Manager
Romona Agena
Manager of Aviation
Compliance
Graham Ritz
Director of Operations
Annie Turner
Manager of Community and
Cultural Engagement
Lindsay Anderson
Director of Government
Affairs
Julie Blevins
Manager of Labor Relations
and Benefits
Trish Tucker
MoreRNO Airport Tenant
Liaison Manager
Ian Whitlock
Chief Legal Officer
2 Positions
Daren Griffin
President/CEO
2 Positions
328-6402
Hasaan Azam
Manager of Air Service & Cargo
Business Development
Tina Iftiger
Chief Air Service Development
Officer 3 Positions
Holly Luna
MoreRNO Controls Director
Jackie Borman
MoreRNO Program Director
4 Positions
328-6456
Amanda Twitchell
MoreRNO Senior Project
Manager
Reno-Tahoe Airport Authority
FY 2024-25
A N N U A L B U D G E T
Preliminary Personnel Complement
FY 2022-23
Funded
FY 2023-24
Funded
FY 2024-25
Funded
Board of Trustees Division
Board of Trustees *
9.0
9.0
9.0
Total Board of Trustees Division *
9.0
9.0
9.0
President/CEO Division
President/CEO Section
President/CEO
1.0
1.0
1.0
Executive Assistant/Board Assistant
1.0
1.0
1.0
Total President/CEO
2.0
2.0
2.0
Legal Section
Chief Legal Officer
1.0
1.0
1.0
Legal Secretary
1.0
0.0
0.0
Associate General Counsel
0.0
1.0
1.0
Total Legal Section
2.0
2.0
2.0
MoreRNO Section
MoreRNO Program Director
0.0
0.0
1.0
MoreRNO Program Controls Director
0.0
0.0
1.0
MoreRNO Program Tenant Liaison Manager
0.0
0.0
1.0
Senior Project Manager
0.0
0.0
1.0
Total MoreRNO Section
0.0
0.0
4.0
Total President/CEO Division
4.0
4.0
8.0
Marketing & Public Affairs Division
Director of Marketing
0.0
0.0
1.0
Chief Marketing and Public Affairs Officer
1.0
1.0
1.0
Manager of Public Affairs
1.0
1.0
1.0
Director of Government Affairs
0.0
1.0
1.0
Art Adminisrator and Marketing Specialist
0.0
0.0
1.0
Marketing Coordinator
2.0
1.0
1.0
Public Affairs Coordinator
0.0
1.0
0.0
Manager of Community and Cultural Engagement
1.0
1.0
1.0
Customer Service Supervisor
1.0
0.0
0.0
Administrative Assistant III
1.0
1.0
0.0
Receptionist
1.0
1.0
0.0
Total Marketing & Public Affairs Division
9.0
8.0
7.0
Air Service Business Development Division
Chief Air Service Development Officer
0.0
0.0
1.0
Manager of Air Service & Cargo Business Development
1.0
1.0
1.0
Air Service Development Specialist
0.0
0.0
1.0
Air Service Development & Community Engagement
1.0
1.0
0.0
Total Air Service Business Development Division
2.0
2.0
3.0
Reno-Tahoe Airport Authority
FY 2024-25
A N N U A L B U D G E T
Preliminary Personnel Complement
FY 2022-23
Funded
FY 2023-24
Funded
FY 2024-25
Funded
Airport Economic Development Division
Chief Commercial Officer
1.0
1.0
1.0
Manager of Aeronautical Properties
0.0
1.0
0.0
Manager of Economic Development
1.0
0.0
1.0
Manager of Properties
1.0
0.0
0.0
Manager of Commercial Properties
0.0
1.0
1.0
Concessions Manager
1.0
1.0
1.0
Aviation Business Program Manager
0.0
1.0
1.0
Property Specialist II
2.0
1.0
1.0
Property Specialist I
1.0
1.0
1.0
Contract Manager
1.0
0.0
0.0
Property Technician
2.0
2.0
2.0
Total Economic Development Division
10.0
9.0
9.0
People, Culture & Equity Division
People Operations Assistant
0.0
0.0
1.0
Chief People, Culture & Equity Officer
1.0
1.0
1.0
Manager of Labor Relations & Benefits
1.0
1.0
1.0
Manager of People Operations
0.0
1.0
1.0
Senior People Business Partner
1.0
0.0
0.0
People Business Partner
2.0
1.0
1.0
People Operations Generalist
0.0
1.0
1.0
People Coordinator
1.0
1.0
0.0
Total People, Culture & Equity Division
6.0
6.0
6.0
Finance & Administration Division
Technology and Information Systems Section
Senior Business Analyst
0.0
0.0
1.0
IT Business Analyst
0.0
0.0
2.0
Director of IT/ Chief Information Officer
1.0
1.0
1.0
Manager of Information Technology
1.0
1.0
1.0
Manager of IT Security
1.0
1.0
1.0
Project Manager
2.0
2.0
0.0
Supervisor of IT
0.0
1.0
1.0
Cyber Security Analyst
0.0
1.0
1.0
Security Systems Technician
1.0
0.0
0.0
Security Systems Admnistrator
1.0
1.0
0.0
Network Administrator II
2.0
2.0
2.0
Service Desk Administrator
0.0
1.0
1.0
Database Administrator
1.0
0.0
0.0
Systems Analyst
1.0
0.0
0.0
Network Administrator I
1.0
1.0
1.0
Total Technology and Information Systems Section
12.0
12.0
12.0
Reno-Tahoe Airport Authority
FY 2024-25
A N N U A L B U D G E T
Preliminary Personnel Complement
FY 2022-23
Funded
FY 2023-24
Funded
FY 2024-25
Funded
Finance Section
Chief Finance & Administration Officer
1.0
1.0
1.0
Senior Internal Auditor
0.0
0.0
1.0
Internal Auditor
1.0
1.0
0.0
Director of Finance
1.0
1.0
1.0
Senior Financial Analyst
1.0
0.0
0.0
Financial Analyst
1.0
2.0
2.0
Manager of Accounting
1.0
1.0
1.0
Accountant
1.0
1.0
1.0
Payroll Administrator
1.0
1.0
1.0
Accounting Technician - AP
1.0
1.0
1.0
Accounting Technician - AR
2.0
2.0
1.0
Senior Accounting Technician
0.0
0.0
1.0
Administrative Assistant III
1.0
1.0
1.0
Total Finance Section
12.0
12.0
12.0
Contracts and Procurement Section
Director of Contracts & Procurement
0.0
1.0
1.0
Manager of Purchasing & Materials Management
1.0
0.0
0.0
Senior Buyer
1.0
1.0
1.0
Buyer
1.0
1.0
1.0
Materials Management Supervisor
1.0
1.0
1.0
Materials Control Technician
1.0
1.0
1.0
Warehouse Assistant/Driver
1.0
1.0
1.0
Total Contracts and Procurement Section
6.0
6.0
6.0
Total Finance & Administration Division
30.0
30.0
30.0
Operations & Public Safety Division
Operations and Public Safety Administration Section
Chief Operations & Public Safety Officer
1.0
1.0
1.0
Director of Operations
1.0
1.0
1.0
Airport Emergency Manager
1.0
1.0
1.0
Operations & Public Safety Compliance Coordinator
0.0
1.0
0.0
Operations Specialist
1.0
0.0
0.0
Total Operations and Public Safety Administration
4.0
4.0
3.0
Airside Operations Section
Manager of Airside Operations
1.0
1.0
1.0
Airport Duty Manager
7.0
7.0
7.0
Total Airside Operations Section
8.0
8.0
8.0
Landside Operations Section
Manager of Landside Operations
1.0
1.0
1.0
Landside Supervisor
2.0
2.0
2.0
Administrative Assistant I/II
1.0
1.0
1.0
Landside Attendant
13.0
13.0
13.0
Landside Shift Leader
6.0
6.0
6.0
Total Landside Operations Section
23.0
23.0
23.0
Reno-Tahoe Airport Authority
FY 2024-25
A N N U A L B U D G E T
Preliminary Personnel Complement
FY 2022-23
Funded
FY 2023-24
Funded
FY 2024-25
Funded
Airport Fire Section
Chief of Airport Rescue Firefighters
1.0
1.0
1.0
Battalion Chief
3.0
3.0
3.0
Fire Captain
6.0
6.0
6.0
Engineer
9.0
9.0
9.0
Fire Fighter
3.0
6.0
6.0
Total Airport Fire Section
22.0
25.0
25.0
Airport Police Section
Chief of Airport Police
1.0
1.0
1.0
Police Captain
1.0
1.0
1.0
Police Sergeant
4.0
4.0
4.0
Police Officer
18.0
18.0
18.0
Police Compliance Specialist
1.0
1.0
1.0
Total Airport Police Section
25.0
25.0
25.0
Airport Communications Section
Manager of Airport Communications
1.0
1.0
1.0
Airport Communications Supervisor
1.0
1.0
1.0
Airport Communications Specialist
11.0
11.0
11.0
Total Airport Communications Section
13.0
13.0
13.0
Aviation Compliance
Manager of Airport Security
1.0
1.0
1.0
Operations & Public Safety Compliance Coordinator
0.0
0.0
1.0
Airport Security Supervisor
1.0
1.0
0.0
Lead Security Specialist
4.0
4.0
0.0
Airport Security Specialist
11.0
11.0
0.0
Security Compliance Supervisor
0.0
1.0
1.0
Security Compliance Specialist II
1.0
0.0
0.0
Security Compliance Specialist I
1.0
1.0
1.0
Total Aviation Compliance Section
19.0
19.0
4.0
Terminal Operations
Airport Operations Specialist
0.0
0.0
11.0
Lead Airport Operations Specialist
0.0
0.0
4.0
Receptionist
0.0
0.0
1.0
Supervisor of Aiport Ops
0.0
0.0
1.0
Manager of Terminal Operations
0.0
1.0
1.0
Customer Service Representatives
0.0
1.0
1.0
Total Terminal Operations
0.0
2.0
19.0
Reno-Tahoe Airport Authority
FY 2024-25
A N N U A L B U D G E T
Preliminary Personnel Complement
FY 2022-23
Funded
FY 2023-24
Funded
FY 2024-25
Funded
Reno-Stead Airport Section
Manager of Reno-Stead Airport
1.0
1.0
1.0
Operations Specialist
0.0
1.0
1.0
Administrative Assistant III
1.0
0.0
0.0
Stead Technician I/II/III
3.0
3.0
2.0
Stead Technician IV
1.0
1.0
2.0
Stead Technician V
1.0
1.0
1.0
Total Reno-Stead Airport Section
7.0
7.0
7.0
Total Operations & Public Safety Division
121.0
126.0
127.0
Planning & Infrastructure Division
Planning & Infrastructure Admin. Section
Chief Planning & Infrastructure Officer
1.0
1.0
1.0
Director of Program Manager
1.0
0.0
0.0
Administrative Assistant III
1.0
1.0
1.0
Total Planning & Infrastructure Admin. Section
3.0
2.0
2.0
Planning and Environmental Services Section
Manager of Planning/Environmental Service
1.0
1.0
1.0
Environmental Program Manager
1.0
1.0
1.5
Airport Planner II
2.0
2.0
2.0
Airport Noise Analyst
1.0
1.0
1.0
Total Planning and Environmental Services Section
5.0
5.0
5.5
Engineering and Construction Section
Manager of Engineering & Construction
1.0
1.0
1.0
Senior Airport Project Manager
2.0
2.0
0.0
Capital Improvements & Grant Coordinator
1.0
1.0
1.0
Senior Facilities Project Manager
1.0
1.0
1.0
Airport Project Manager II
2.0
2.0
2.0
Total Engineering and Construction
7.0
7.0
5.0
Facilities and Maintenance Administration Section
Director of Facilities and Maintenance
1.0
1.0
1.0
Facilities Project Manager
1.0
1.0
1.0
Total Facilities and Maintenance Administration Section
2.0
2.0
2.0
Reno-Tahoe Airport Authority
FY 2024-25
A N N U A L B U D G E T
Preliminary Personnel Complement
FY 2022-23
Funded
FY 2023-24
Funded
FY 2024-25
Funded
Airfield Maintenance Section
Airfield Maintenance Superintendent
1.0
1.0
1.0
Airfield Maintenance Supervisor
2.0
2.0
2.0
Airfield Technician V
5.0
5.0
5.0
Airfield Equipment Mechanic IV
3.0
3.0
3.0
Airfield Landscape Technician IV
1.0
0.0
1.0
Airfield Landscape Technician III
1.0
1.0
0.0
Airfield Electrician Technician IV
2.0
2.0
2.0
Airfield Technician I, II, III
11.0
11.0
11.0
Airfield Technician IV
0.0
1.0
2.0
Airfield Automotive Technician III
1.0
1.0
1.0
Airfield Manitenance Technician
0.0
1.0
0.0
Airfield Maintenance Specialist
0.0
1.0
1.0
Administrative Assistant II
1.0
0.0
0.0
Total Airfield Maintenance Section
28.0
29.0
29.0
Building Maintenance and Services Section
Facilities Superintendent
1.0
1.0
1.0
Assistant Facilities Superintendent
1.0
1.0
1.0
Facilities Supervisor
5.0
5.0
5.0
Facilities Maintenance Technician I, II, III
6.0
6.0
7.0
Facilities Jet Bridge Technician IV
2.0
2.0
2.0
Facilities Maintenance Technician IV
2.0
2.0
1.0
Facilities Plumber Technician IV
1.0
1.0
1.0
Facilities Maintenance Technician V
3.0
3.0
4.0
Facilities HVAC Plant Operator V
1.0
1.0
0.0
Facilities HVAC Technician IV
2.0
2.0
2.0
Facilities Electrician Technician IV
3.0
3.0
3.0
Maintenance Scheduler/Planner
1.0
1.0
1.0
Senior Airport Facilities Custodian
2.0
2.0
2.0
Airport Facilities Custodian
32.0
32.0
32.0
Total Building Maintenance and Services Section
62.0
62.0
62.0
Total Planning & Infrastructure Division
107.0
107.0
105.5
TOTAL AIRPORT (Does not include the appointed
289.0
292.0
295.5
Board of Trustees)
* Appointed positions
Board Memorandum
05/2024-20
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Adoption of Resolution No. 567 Amending Resolution No. 565, Establishing the
Airport Rates and Charges for Fiscal Year 2024-25 Pursuant to the Reno-Tahoe Airport
Authority Budget for Fiscal Year 2024-25
STAFF RECOMMENDATION
Staff recommends that the Board adopts Resolution No. 567, a Resolution amending Resolution
No. 565, a Master Fee Resolution setting forth Airport Rates and Charges for Fiscal Year (FY)
2024-25 pursuant to the Reno-Tahoe Airport Authority’s (RTAA) FY 2024-25 Annual Budget.
BACKGROUND
The Airport Act, Chapter 474, states that RTAA may assess and collect fees, rentals, rates, and
other charges. RTAA has numerous resolutions, policies, and agreements that set forth rates and
fees for the various operators and customers at Reno-Tahoe International Airport (RNO) and Reno-
Stead Airport (RTS). The purpose of the Master Fee Resolution (“Resolution”) is to provide the
Board, staff, and users of the RTAA one document that details the majority of rates, charges, and
fees in one place for easy reference.
DISCUSSION
The Resolution is updated on an annual basis to coincide with the budget process and may be
amended during the fiscal year. Rates and charges, such as landing fees, terminal building rents,
and fees for the baggage handling system are calculated to recover the estimated cost to operate
these facilities as established in the proposed RTAA budget for FY 2024-25. Some of the
highlights of the proposed Master Fee Resolution are as follows:
• The signatory landing fee rate is increasing from $3.99 to $4.19 per 1,000 lbs. of landed
weight. The non-signatory landing fee rate is increasing from $4.59 to $4.82 per 1,000 lbs.
This rate increase is attributed to the 3.6% decrease in forecasted landed weight in FY
2024-25 driven by less cargo activity and some passenger carriers exiting the Reno market.
These adjustments in landing fees are necessary to meet the proposed budget requirements
for funding operating expenses, fixed assets, amortization of capital projects, and capital
improvement projects associated with the Airfield cost center.
• Terminal rental rates for the use of RNO terminal facilities are calculated as Conditioned
and Unconditioned Space. Ticket Counters, Office, Holdrooms, Baggage Service Office,
Operations, Baggage Makeup and Handling, Baggage Claim, and Wheelchair Storage
space categories are consolidated into Conditioned Space. Unenclosed Areas and Tug
Page 2 of 3
Drives are considered Unconditioned Space. Conditioned Space is increasing from $150.76
to $165.48 per square foot per annum (PSFPA) and Unconditioned Space is increasing
from $75.38 to $82.74 for both signatory and non-signatory airlines. The average terminal
rental rate is increasing from $142.44 to $156.40 PSFPA. The increase is due to higher
O&M expenses for FY 2024-25 and the addition of debt service related to the ticketing hall
expansion project. Funding allocated for fixed asset and capital project expenses is
decreasing in FY 2024-25.
• The Ramp Overnight Fee (RON) is increasing from $126.00 to $132.00; this is mainly due
to the increase in landing fee rates.
• Baggage Handling System (BHS) fee is increasing from $1.38 to $1.62 per bag for signatory
airlines and $1.52 to $1.78 for non-signatory airlines. The BHS fee is calculated to recover
the total cost of operating and maintaining the system. The increase is primarily due to the
new maintenance contract effective July 1, 2024.
• The gate use charge is increasing from $280.00 to $300.00 per turn or $2.60 to $2.85 per
turn per passenger due to the increase in the Conditioned Space rental rate.
• Joint use baggage makeup and handling, baggage claim, tug drives, and wheelchair storage
fee is increasing from $2.45 to $2.80 per passenger mainly due to the higher terminal rental
rate and decrease in the passenger traffic at RNO.
• Ticket counter per use fee is increasing from $41.00 to $45.00 per counter (two positions).
The increase is due to higher terminal rental rates.
• Applicable land and building rents reflect a 3.50% Consumer Price Index (CPI) adjustment
based on the increase from March 2023 to March 2024.
• General Aviation (GA) rental rates adjusted annually by CPI are proposed to change based
on current contracts. T-hangars reflect an approximately 2% increase due to the cap in the
T-Hangar Leasing Guidelines. Box hangars and other GA rental rates reflect a 3.50% CPI
adjustment.
• Waste disposal fees are increasing from $6,809 to $6,943 per month due to higher costs
associated with providing the trash removal services. This is based on the previous year’s
actual expenditures.
• Transportation Network Companies (TNC) rates are set to increase for FY 2024-25. The
pick-up rate will increase from $2.00 to $3.00, and the drop-off rate will increase from $1.00
to $2.00.
• The ready/return parking fee has increased from $97.00 to $144.00 per space per month.
This adjustment reflects the current short-term public parking garage maximum fee per day
multiplied by four days per month.
Page 3 of 3
• The IT service fee has been updated to incorporate an additional charge of $75.00 per hour
for support after the initial setup.
• Administrative fees are added for RTS to which include a $25.00 charge per occurrence for
storage unit lock services, a late fee of $25.00 if payment is not received by the 5th of each
month, a $25.00 administrative fee for new rentals, and a $35.00 charge for returned checks.
• The Landing Fees for Bureau of Land Management (BLM) at RTS are increasing from
$90.00 to $93.00 per landing for aircraft weighing less than or equal to 155,000 lbs. and
from $240.00 to $248.00 per landing for aircraft over 155,000 lbs. This rate adjustment is
based on the 3.5% March CPI increase.
In addition to the rate changes outlined above, there is a terminology change from Cargo to RNO
Air Operations Area (AOA) to provide a more accurate description of the leasable land locations.
FISCAL IMPACT
The fiscal impact related to Resolution No. 567 is reflected in the proposed FY 2024-25 budget.
COMMITTEE COORDINATION
Finance and Business Development Committee
PROPOSED MOTION
“Move to adopt Resolution No. 567 amending Resolution No. 565 establishing the Airport Rates
and Charges for Fiscal Year 2024-25 pursuant to the RTAA’s proposed Budget for Fiscal Year
2024-25.”
Page 1 of 11
RESOLUTION NO. 567
A RESOLUTION AMENDING RESOLUTION NO. 565, A MASTER FEE
RESOLUTION SETTING FORTH AIRPORT RATES AND CHARGES FOR FY
2024-2025
(Note: Changes are in bold)
WHEREAS, Section 10 (10) of SB 198, Chapter 474, Statutes of Nevada 1977 provides
that the Reno-Tahoe Airport Authority may charge fees, rentals, rates, and other charges:
NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the Reno-Tahoe
Airport Authority that Resolution Number 565 is amended to set forth a list of master fees
for Fiscal Year 2024-2025 for the Reno-Tahoe International Airport (RNO) and the Reno-
Stead Airport (RTS).
Rates and charges that are being changed are noted in bold with the previous amount in red.
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO SIGNATORY RATES AND CHARGES
Landing Fee
$4.19 ($3.99) per 1,000 lbs.
Terminal Conditioned Space
$165.48 ($150.76) PSFPA*
*Per square foot per annum
Terminal Unconditioned Space
$82.74 ($75.38) PSFPA
Baggage Handling System (BHS) Charge
$1.62 ($1.38) per bag
processed through the
Baggage Handling System
RNO NON-SIGNATORY RATES AND CHARGES
Landing Fee
$4.82 ($4.59) per 1,000 lbs.
Terminal Conditioned Space
$165.48 ($150.76) PSFPA
Terminal Unconditioned Space
$82.74 ($75.38) PSFPA
Baggage Handling System (BHS) Charge
$1.78 ($1.52) per bag
processed through the
Baggage Handling System
Joint Use Baggage Makeup and Handling, Baggage
Claim and Tug Drives, Wheelchair Storage
$2.80 ($2.45) per Enplaned
and Deplaned Passenger
Ticket Counter (Each Counter/ 2 Positions)
$45.00 ($41.00) per ticket
counter (2 positions) per
enplaning operation.
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 2 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO NON-SIGNATORY RATES AND CHARGES (Continued)
Gate Use Charge
The lesser of $2.85 ($2.60)
per enplaning and deplaning
passenger or $300.00
($280.00) per turn.
However, the former will
only be considered upon
airline request and with
airline provided specific, per
flight passenger totals
submitted with the required
monthly landing report (10
days after the end of the
month).
RNO OTHER AIRLINE CHARGES
Ramp Overnight Fee (RON)
$132.00 ($126.00) per day
over 3 hours
Gate Overstay Penalty
$250.00 per 15-minute
period exceeding initial 15
minutes after being directed
to tow the aircraft.
Disposal Fees
$6,943 ($6,809) monthly
Customs and Border Protection Facility Use Charge
$4.50 per deplaned
international passenger
Passenger Boarding Ramp Equipment Use Fee
$45.00 per enplaning or
deplaning operation
excluding scheduled
international service.
Incentives for scheduled passenger air and air cargo
carriers to increase air service to Reno
Policy guidelines for
waiving landing fees and/or
other charges as approved by
the Board for a period of up
to two years (365 days).
Resolution No. 566 (No.
548) amending Resolution
No. 548 (No. 544) updating
Policy No. 600-007.
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 3 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO AIR OPERATIONS AREA (AOA) (CARGO) LAND RENTS
Improved Land on Air Operations Area (AOA)
(Adjacent to Air Cargo Ramp)
$1.14 ($1.10) PSFPA
Unimproved Land on Air Operations Area (AOA) (As-
Is Land in Air Cargo Area not adjacent to the Air Cargo
Ramp)
$0.77 ($0.74) PSFPA
RNO MISCELLANEOUS AVIATION SERVICES
Fuel Flowage Fees – Reno/Tahoe International
$0.07 per gallon
Commercial Aviation Ground Handlers and Support
Service Operators
6% of Gross Revenues per
the Commercial Aviation
Ground Handling and
Support Services Operating
Agreement.
RNO OTHER TERMINAL RENTS (NON-AIRLINE)
Ticket Lobby/Office Support Space
$165.48 ($150.76) PSFPA
Ticket Lobby/Alcove Space
$165.48 ($150.76) PSFPA
Baggage Claim Ground Transportation Facility
$165.48 ($150.76) PSFPA
Baggage Claim Ground Transportation Vestibule Counter
$442.96 ($427.98) per
counter per month
$150.00 per counter per day
Concession Office/Storage/Support Space
$10.59 ($10.23) PSFPA
RNO T-HANGAR RATES
GA East
E37-E57
$472.00 ($463.00) per unit
per month
GA East
E1-E36
$626.00 ($614.00) per unit
per month
T-Hangar Storage Space
(GA East)
$0.372 per sq. ft. per month
** Per General Aviation T-Hangar Leasing Guidelines adopted on May 18, 2017, and the
General Aviation Rent Study (July 23, 2019) adopted by the Board on August 8, 2019,
the following will apply to all RNO T-Hangar leases:
1. All existing T-Hangar lease rental rates will be adjusted by a comparative rent
analysis every five (5) years as well as an annual adjustment between each
comparative rent analysis equal to the March CPI-U index, not to exceed 2%.
2. The rental rates for all T-Hangar leases with less than a one-year term and all
month-to-month T-Hangar leases will be adjusted by the CPI plus an additional
10% differential.
RNO AIRCRAFT TIE-DOWN PARKING RATES
Aircraft Tie-Down Parking
$100.00 per aircraft tie-
down position per month
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 4 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO BOX HANGAR RATES
GA West
Hangar #2
Hangar #7
Hangar #8
$0.408 ($0.394) per sq. ft.
per month
GA West
Hangar #9
Hangar #10
$0.509 ($0.492) per sq. ft.
per month
GA West/East
Aircraft Apron Parking
$0.060 ($0.058) per sq. ft.
per month
GA East
Hangar - Building B
Hangar – Building E
Hangar – Building F
Hangar – Building G
$0.509 ($0.492) per sq. ft.
per month
GA East and West Hangar Office
$0.639 ($0.617) per sq. ft.
per month
RNO VEHICLE PARKING FEES
Short Term – Garage (1
st
floor)
1 - 10 min Free
11 - 20 min $1.00
21 - 40 min $2.00
41 - 60 min $3.00
$3.00 Each Additional Hour
or Part Thereof up to 6
hours. Between 6 hours and
24 hours the daily maximum
will be charged at the
Maximum Per Day $36.00
Long Term – Garage (2
nd
and 3
rd
floors)
1 - 10 min Free
11 - 20 min $1.00
21 - 40 min $2.00
41 - 60 min $3.00
$2.00 Each Additional Hour
or Part Thereof
Maximum Per Day $16.00
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 5 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO VEHICLE PARKING FEES (Continued)
Long Term – Surface Lot
1 - 10 min Free
11 - 20 min $1.00
21 - 40 min $2.00
41 - 60 min $3.00
$2.00 Each Additional Hour
or Part Thereof
Maximum Per Day $12.00
Overflow Parking
Maximum Per Day $12.00
Will be charged per calendar
day
Yellow Lot
1 - 10 min Free
11 - 20 min $1.00
21 - 40 min $2.00
41 - 60 min $3.00
$2.00 Each Additional Hour
or Part Thereof
Maximum Per Day $14.00
Blue Lot
1 - 10 min Free
11 - 20 min $1.00
21 - 40 min $2.00
41 - 60 min $3.00
$2.00 Each Additional Hour
or Part Thereof
Maximum Per Day $12.00
Oversize Vehicle Parking
Charged at the published
parking rate multiplied by
the number of spaces the
vehicle occupies.
Lost Ticket
Minimum charge for lost
ticket is $26.00
Parking Proximity Card Replacement
$25.00 for each replacement
card
Non-Domiciled Flight Crew Parking Tier-1
$100.00 per month per
employee
Non-Domiciled Flight
Crew Parking Tier-2
$50.00 per month per
employee
Tenant Employee Parking
$20.00 per month per
employee
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 6 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO GROUND TRANSPORTATION FEES
Vehicle Registration Fee
$25.00 minimum annual fee
per company, $5.00 per
vehicle over 5 vehicles,
maximum $200.00
New /Lost/ or Replacement Transponder
$25.00 for license plate
version,
$15 for windshield version
Non-domicile Bus (bus with no operating permit)
$25.00 per trip
Buses (>24 seat capacity)
$5.00 per trip
Shuttles (<24 seat capacity)
$3.00 per trip
Scheduled Shuttles
$2.00 per trip (companies
with a minimum 16 trips per
day on a set schedule.)
Courtesy Vehicles
$3.00 per trip
Pay Limousine
$3.00 per trip
Taxi
$2.00 per trip
Transportation Network Companies
$3.00 ($2.00) per pick-up
and $2.00 ($1.00) per drop-
off
Ground Transportation Citation
$100.00
Commercial Vehicle Overnight Parking
$10 per space per night
RNO PARKING CITATIONS
Unattended Vehicle
$30.00
Front Curb Loading/Unloading
$25.00
Commercial Loading/Unloading
$25.00
Parking in Crosswalk
$30.00
Curb Markings
$30.00
Failure to Obey Sign
$30.00
Accessibility Zone
$250.00
Failure to Obey Officer
$30.00
RNO OFF-AIRPORT PARKING CONCESSION
Off-Airport Parking Operator Fee
7% of Gross Revenues
RNO AUTO RENTAL – ON AIRPORT
Customer Facility Charge
$9.80 per transaction day on
each individual vehicle
rental
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 7 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO AUTO RENTAL – ON AIRPORT (Continued)
Terminal Counter Space
$165.48 ($150.76) PSFPA
Terminal Office Space
$165.48 ($150.76) PSFPA
Quick Turnaround Lot Premises and Common Area
$1.652 ($1.596) PSFPA
Quick Turnaround Building Rent (1/5
th
share)
$64,679.33 ($62,492.11)
annual rent
Ready Parking
and Return Parking
$144.00 ($97.00) Per space
per month
Service Facility Building Rent
$10.312 ($9.963) PSFPA
Service Facility Land Rent
$0.935 ($0.903) PSFPA
RNO AUTO RENTAL – OFF AIRPORT
Off Airport Rental Cars
10% of gross revenues
RNO PEER-TO-PEER CAR SHARING
RNO Peer-to-Peer Car Sharing
10% of gross revenues plus
daily long-term parking rate
for the use of any designated
parking stalls
RNO AIRPORT WAREHOUSING
Storage Unit– 12 ft. X 20 ft.
$125.00 per month*
Storage Unit– 12 ft. X 30 ft.
$150.00 per month*
Storage Unit– 12 ft. X 30 ft. with Loft
$175.00 per month*
($0.46 per sq. ft. per month*)
* Subject to promotions and discounts to increase business and lower specific vacancy rates.
Month-to-month tenants are subject to individual rent increases at any time.
Administrative Fee - new rentals (non-refundable)
$25.00 per new rental
Mailbox Rental – Small
$24.00 per quarter
Mailbox Rental – Medium
$30.00 per quarter
Mailbox Rental – Large
$35.00 per quarter
Storage Unit Lock Services – Cutting existing or
providing a new lock
$25.00 per occurrence
Late Fee Charge
$25.00 if payment not
received by 5
th
of each month
Returned Check Charge
$35.00 for all checks returned
unpaid
RNO PARK TO TRAVEL
Outside Parking
$10.00 per day
$60.00 per week
$95.00 per month
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 8 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO PARK TO TRAVEL (Continued)
Enclosed Parking – 12 ft. X 20 ft.
$125.00 per month
Enclosed Parking – 12 ft. X 30 ft.
$150.00 per month
Enclosed Parking – 12 ft. X 30 ft. with Loft
$175.00 per month
Late Fee Charge
$25.00 if payment not
received by 5
th
of each month
Returned Check Charge
$35.00 for all checks returned
unpaid
Administrative Fee - new rentals (non-refundable)
$25.00 per new rental
RNO MISCELLANEOUS FEES/CHARGES
Photo Copying
$1.25 for the first page, $0.25
for each additional page
thereafter. $10.00 if sent to
outside copying service plus
cost of copying.
Reimbursement for services/maintenance
Based on level of personnel
ranging from $65.00 to
$125.00 per hour and type of
equipment ranging from
$40.00 to $275.00 per hour
Late Payment Service Charge
Highest rate established from
time to time – currently 18%
APR; minimum charge of
$5.00
Security ID Badges
Initial Identification Badge
$50.00, excluding Signatory
Airlines;
Badge renewal $25.00,
including Signatory Airlines;
Badge Replacement
(Lost/Stolen) $50.00,
including Signatory Airlines
and Airport Authority
employees;
Unreturned badge fee $150.00
assessed to sponsoring
company.
CBP Seal Fee $10.00
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 9 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
RNO MISCELLANEOUS FEES/CHARGES (Continued)
Airport Operations Area ID Badge
Initial Air Operations Area
employee/tenant identification
badge $25.00; AOA ID
Renewal $12.50 Per annum
Tenant Fingerprinting
$75.00 Airport processing fee
per employee - original
Tenant Keys and Locks
$50.00 per key
$100.00 per core
$360.00 per lockset
SIDA/Driver Training Session
$25.00 per employee
Conference Room Rental
For airport tenants:
- $125.00 half day
- $200.00 full day
- Free for hiring events.
For non-tenants:
- $250.00 half day
- $400.00 full day
IT Services $75.00 for setup,
then $75.00 per hour for
additional support as
requested
Copy of Police Report
$10.00 per copy, $15.00 if
mailed
Copy of Electronic Files on Flash Drive
$20.00 per unit Download on
flash drive.
Brookside Lot – Remote Trailer Parking/Short Term
Storage (No Terminal Access)
$50.00 per day not to exceed
15 trailers.
Special Use Permit
(i.e. filming, one-time use of ramp, booths on curb, etc.)
$600.00 per day for non-
aviation impacts; $900.00 per
day for activity that impacts
aviation
*** RENO-STEAD AIRPORT (RTS)
Landing Fees – Bureau of Land Management (BLM)
$93.00 ($90.00) per landing
for aircraft less than or equal
to 155,000 lbs.; $248.00
($240.00) per landing for
aircraft over 155,000 lbs.
Fuel Flowage Fees – RTS
$0.05 per gallon
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 10 of 11
FEES/RENTALS/RATES
AND OTHER CHARGES
AMOUNT
*** RENO-STEAD AIRPORT (RTS) (Continued)
Commercial Aviation Operators
3% of gross revenues
Terminal Space Rent
$1.70 ($1.64) per sq. ft. per
month plus $0.22 ($0.21) per
sq. ft. per month common area
maintenance charges
Conference Room Rental
For airport tenants:
- $125.00 half day
- $200.00 full day
- $100.00 cleaning deposit
For non-tenants:
- $250.00 half day
- $400.00 full day
- $100.00 cleaning deposit
IT Services $75.00 for setup,
then $75.00 per hour for
additional support as
requested
Special Use Permit
(i.e. filming, one-time use of ramp, etc.)
$600.00 per day for non-
aviation impact; $900.00 per
day for activity that impacts
aviation
RTS Gate Key
$25.00 deposit
Administrative Fee - new rentals (non-refundable)
$25.00 per new rental
Storage Unit Lock Services – Cutting existing or
providing a new lock
$25.00 per occurrence
Late Fee Charge
$25.00 if payment not
received by 5th of each
month
Returned Check Charge
$35.00 for all checks
returned unpaid
Storage Unit- 10 ft. X 20 ft.
$80.00 per month
Storage Unit- 20 ft. X 20 ft.
$125.00 per month
Aircraft Ramp Parking- transient aircraft with landed
weight of 12,500 lb.
The lesser of $10.00 per
aircraft per day or $50.00 per
aircraft per week
Resolution No. 567 - Master Fees
Fiscal Year 2024-25
Page 11 of 11
On motion by Trustee , second by Trustee , the foregoing Resolution
No. 567 was passed and adopted this 23
th
day of May 2024, by the following vote of the
Board:
AYES:
NAYS:
ABSENT:
ABSTAIN:
__________________________________
Chair Carol Chaplin
ATTEST:
_______________________________________
Secretary Adam Kramer
Board Memorandum
05/2024-21
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Approval of Investment Banking Pool of Underwriters Related to the Issuance of
Airport Revenue Bonds by the Reno-Tahoe Airport Authority for the MoreRNO
Program of Projects with BofA Securities Inc., Jefferies LLC, Samuel A. Ramirez &
Co., Wells Fargo Corporate & Investment Banking, Academy Securities Inc., Loop
Capital Markets, RBC Capital Markets LLC, and Stifel Nicolaus & Company Inc. and
Underwriter Assignments for the Initial Issuance of Bonds Anticipated in 2024
STAFF RECOMMENDATION
Staff recommends that the Board approve the motion presented below designating BofA Securities
Inc., Jefferies LLC, Samuel A. Ramirez & Co., Wells Fargo Corporate & Investment Banking,
Academy Securities Inc., Loop Capital Markets, RBC Capital Markets LLC, and Stifel Nicolaus
& Company Inc. as the MoreRNO Investment Banking Pool.
BACKGROUND
Chapter 474 and the Local Government Securities Law of the Nevada Revised Statutes (NRS)
provide conditions, procedure and authorization to RTAA to issue revenue bonds for airport capital
improvements. Bonds of this nature are anticipated to finance the development of major capital
improvements planned under the MoreRNO program of projects. Airport revenue improvement
bonds are limited obligations and repaid by a pledge of net revenues generated by RTAA from the
operation of the airport system and can include other eligible sources such as Passenger Facility
Charges. The bonds are typically issued in multiple series to align with the timing of cashflow
requirements of major project expenditures.
The MoreRNO program of projects anticipates approximately $700 million of capital
improvements (excluding the GTC development) for developing the new RTAA administration
and public safety facility (the “HQ”), the new concourses (“NewGen A&B”), and other airport
improvements anticipated over the coming years. The bulk of the funding for these projects is
expected to come from the issuance of bonds. RTAA was last in the market in 2015 when it
refinanced earlier bonds issued to finance the parking garage improvements, pedestrian overpass
and the snow removal equipment storage facility. The bonds were issued on a private placement
basis as unrated bonds and have since been paid in full. Currently the only debt outstanding is
approximately $15.9 million on RTAA’s non-revolving line of credit used for the Ticketing Hall
project.
Page 2 of 5
DISCUSSION
On February 7, 2024, RTAA issued a Request for Proposal (RFP) No. 23/24-17 requesting
proposals from 46 investment banking firms to create a pool of prequalified underwriters for the
MoreRNO program. The objective of forming an underwriter pool is to partner with selected
investment banking firms to assist RTAA over the coming years as the MoreRNO program calls
for the issuance of revenue bonds or other forms of securities. Key components of the scope of
services include the following:
• Review and assist in preparing financing documents.
• Analyze and assist with recommendations relating to various financing options to secure
the lowest practical interest rate and achieve optimal leverage of RTAA resources.
• Assist RTAA in developing a bond rating strategy.
• Provide structuring recommendations consistent with prudent levels of risk and suitability
for the type of debt for RTAA.
• Prepare a marketing plan to reach the widest competition for RTAA bonds.
• Evaluate market conditions and advise on legislative or market conditions that may impact
RTAA’s issuance of bonds.
• Manage the underwriting book of orders and secure investor interest.
• Ability to commit to underwrite RTAA bonds.
• Prepare related documentation, including closing memorandum and post-pricing analyses.
The approach to utilize a prequalified pool of underwriters is somewhat common in airport and
municipal organizations. This approach provides the benefit of establishing a longer-term
partnership with banking firms to more promptly draw upon when financing is required. In some
instances, due to market conditions and expediency, a separate selection process may not be ideal
or practical. Moreover, as a member of the underwriter pool the banking teams are expected to
actively monitor the status of RTAA’s capital development plans and examine opportunities to
refinance outstanding RTAA debt. Underwriter appointments are expected to rotate each instance
RTAA plans to access the capital markets.
The RFP was issued to investment banking firms with outreach assistance from PFM Financial
Advisors, LLC (PFM), RTAA’s financial advisory firm. The RFP specifications called for firms
to prepare a response aimed at either a Senior Manager appointment or a Co-Manager appointment
or both. Minimum qualifications called for underwriter to have served in either capacity on at least
one revenue bond transaction since January 1, 2021. A Senior Manager has the primary
responsibility for transaction management with support provided by Co-Managers for the
marketing and distribution of bonds. On March 13, 2024, RTAA received 27 responses to the RFP.
The RFP process also called for investment banking firms to assign a proposed team, highlight
qualifications and experience, provide examples of similar financing transactions and specifically
address ideas and recommendations for RTAA’s first bond issuance anticipated in 2024.
Additionally, the RFP called for a discussion on fees and to provide references. Evaluation criteria
focused on experience and qualifications, past successes and the overall quality, accuracy and
completeness of the proposal. All 27 proposals were deemed to be responsive to these criteria by
RTAA’s Contracts & Procurement Department and recommended for further consideration in the
selection process.
Page 3 of 5
The 27 proposals were then evaluated by a team of RTAA subject matter experts (SMEs) from the
RTAA Finance & Administration Division. Their objective called for winnowing the group down
to a short list of 4 Senior Manager firms to be interviewed based on the quality of the written
proposals. The interviews were conducted on April 12, 2024, by a panel that included the SMEs,
President/CEO Griffin, RTAA Treasurer Cunningham and Brian Gallucci of PFM as a non-voting
industry expert. All 4 firms were recommended as Senior Managers.
The investment banking firm of BofA Securities received the highest consensus scoring of the
interview panel to serve as the Senior Manager for RTAA’s initial 2024 bond transaction. The
scoring was based on criteria that included qualifications and experience of the proposed team and
firm in the airport sector, proposed solutions to address RTAA’s capital financing objectives, key
credit considerations, and the overall quality of the written proposals and interviews. Furthermore,
the SMEs recommended 4 Co-Managers to increase the total underwriter pool to 8 firms. The 8
firms represent a robust cross-section of experienced and qualified large national and regional
firms, and firms certified as disadvantaged business enterprises.
The recommended underwriter pool, the designation as either Senior or Co-Manager, the
underwriter assignments for the 2024 bonds and the firms not selected for the pool is as follows:
Recommended Pool
Not Selected
Senior or Co-Managers
Senior or Co-Managers
BofA Securities
Alamo Capital
Jefferies
AmeriVet Securities
Samuel A. Ramirez & Co.
Backstrom McCarley Berry & Co.
Wells Fargo
Barclays
Blaylock Van LLC
Co-Managers
Cabrera Capital
Academy Securities
D.A. Davidson & Co.
Loop Capital Markets
Estrada Hinojosa
RBC Capital Markets
Goldman Sachs
Stifel Nicolaus & Company
J.P. Morgan
Mesirow
Recommended 2024 Bonds
Mischler Financial Group
Investment Banking Team
Morgan Stanley
Bank of America (Senior Manager)
Piper Sandler
Wells Fargo (Co-Manager)
PNC Capital Markets
Loop Capital Markets (Co-Manager)
Raymond James
Academy Securities (Co-Manager)
Siebert Williams Shank
Stern Brothers
Truist
A key factor in the recommendation of BofA Securities was their understanding and commitment
to fulfill RTAA’s financing goals and objectives. The BofA Securities team has extensive
experience in the airport financing sector. Since January 1, 2021, BofA Securities has senior
managed 26 airport financings totaling over $12.3 billion. BofA has also senior managed 13
transactions with over $1.9 billion in volume in Nevada. BofA Securities’ parent company Bank
of America is well capitalized with excess net capital of $14.8 billion as of December 31, 2023.
Page 4 of 5
The BofA Securities team will be led by Matthew Jiang, Director, with 15 years of experience
working specifically with airports across the country.
As noted earlier and explained in the RFP specifications, not all underwriter firms will be selected
each instance RTAA requires capital financing. The actual quantity and composition of the banks
will likely vary from transaction to transaction depending on RTAA’s future needs and
circumstances. Although there are no guarantees of banking assignments, RTAA’s intent is to see
all firms within the approved underwriter pool participate as the MoreRNO program matures. As
a member of the underwriter pool, representatives are encouraged to maintain a current awareness
of RTAA, including the regional economy, RNO air service program, and progress on RTAA’s
capital delivery plans.
Next Steps / Tentative Schedule
May
• Complete selection of investment banking firms for underwriter pool
• Prepare first drafts of key financing documents (Master Trust Indenture,
Preliminary Official Statement, Feasibility Report, etc)
June
• Develop rating agency presentation materials
• Complete bond documents in substantially final form
July
• Rating agency presentations and receive ratings
• Seek Board approval of 2024 bond issuance (July 11, 2024 Board Meeting)
August
• Bond marketing and pricing
• Bond closing
The size of the 2024 bonds has not yet been solidified and current estimates range from $250 to
$300 million depending upon pending decisions on project design, construction, scheduling and
funding requirements of the HQ and NewGEN A&B. Additional bonds will be considered at
intervals of 12 to 18 months as the MoreRNO program unfolds. The key objective is to size the
bonds based on the timing and project funding needs at the time. The full program of bonds over
the duration of the MoreRNO program could be in the $600 to $800 million range depending on
future RTAA decisions, project costs, grants and the availability of other funding sources. Grants
and other funding sources have the positive effect of reducing the amount of bonded indebtedness.
In addition to the underwriters, other financing participants utilized by RTAA are addressing the
legal documentation and feasibility analysis requirements, including Sherman & Howard as Bond
Counsel, Kaplan Kirsch Rockwell as Disclosure Counsel, Stradling Yocca Carlson & Rauth as
Underwriters’ Counsel, and Landrum & Brown as the Feasibility Consultant. Each firm was
selected following a competitive process and are in the process of developing first drafts of the
requisite bond documents. A bond trustee will also be required and added to the team in the coming
months.
FISCAL IMPACT
Underwriters are compensated by way of a negotiated “gross spread” that includes components
for commission (known as “takedown”) and reimbursement of transaction expenses. Based on the
bond sizing assumption of $273 million and budget for transaction expenses, BofA Securities
estimates a total gross spread of $697,215. The actual gross spread may be higher or lower
depending on what may be warranted for RTAA to achieve optional bond terms at the time the
Page 5 of 5
bonds are brought to market. With only a few outliers, the gross spreads of all proposing firms
were within the same relative range. This selection process is qualitative and not based solely on
the lowest price.
COMMITTEE COORDINATION
Finance and Business Development Committee
PROPOSED MOTION
“Move to approve the Investment Banking Pool of Underwriters Related to the Issuance of Airport
Revenue Bonds by the Reno-Tahoe Airport Authority for the MoreRNO Program of Projects with
BofA Securities Inc., Jefferies LLC, Samuel A. Ramirez & Co., Wells Fargo Corporate &
Investment Banking, Academy Securities Inc., Loop Capital Markets, RBC Capital Markets LLC,
and Stifel Nicolaus & Company Inc. and Underwriter Assignment for the Initial Issuance of Bonds
Anticipated in 2024.”
Board Memorandum
05/2024-22
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Approval of Resolution No. 568 Authorizing Declarations of Official Intent Under
Internal Revenue Code Regulations with Respect to Reimbursements from Bond
Proceeds of Advances Made for Payments Prior to Issuance and Related Matters
STAFF RECOMMENDATION
Staff recommends that the Board approve the motion presented below adopting Resolution No.
568 declaring intent by the Reno-Tahoe Airport Authority to reimburse self-funded project
expenditures from bond proceeds in accordance with applicable U.S. Treasury regulations.
BACKGROUND
Under Treasury Regulations section 1.150-2(d)(1) an issuer of bonds must adopt an official intent
to be reimbursed by bond proceeds for prior self-funded project expenditures. Federal tax laws
prohibit the use of tax-exempt bond proceeds to finance capital expenditures that occur before
bonds are issued unless reimbursement official intent was previously established. The purpose of
these regulations is to prevent an issuer from borrowing funds at tax-exempt rates to repay itself
for expenditures that may have occurred years earlier. This official intent must be established no
later than 60 days after payment of an expenditure. Reimbursements from bond proceeds are
permitted for capital expenditures and costs of issuance.
DISCUSSION
Resolution No. 568 establishes official intent by RTAA to be reimbursed for self-funded project
expenditures from tax-exempt bond proceeds. This intent is essential for RTAA to be reimbursed
for project expenditures that occur prior to the planned issuance of tax-exempt bonds contemplated
with the financing requirements of the MoreRNO program of projects. The accompanying
resolution contains a total project expenditure amount of $750 million to be funded by bonds.
Adopting this resolution is in no way an obligation to issue bonds in this amount.
FISCAL IMPACT
None
COMMITTEE COORDINATION
Finance and Business Development Committee
Page 2 of 2
PROPOSED MOTION
“Move to Adopt Resolution No. 568 Authorizing Declarations of Official Intent Under Internal
Revenue Code Regulations with Respect to Reimbursements from Bond Proceeds of Advances
Made for Payments Prior to Issuance and Related Matters.”
1.
RESOLUTION NO. 568
A RESOLUTION SETTING FORTH THE INTENT OF THE
RENO-TAHOE AIRPORT AUTHORITY TO REIMBURSE
THE COSTS OF ACQUIRING, CONSTRUCTING,
IMPROVING AND EQUIPPING AIRPORT FACILITIES,
OUT OF THE PROCEEDS OF AIRPORT SYSTEM
REVENUE BONDS ISSUED, IN ONE OR MORE SERIES,
IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED $750,000,000, AS REQUIRED UNDER
THE INTERNAL REVENUE CODE REGULATIONS
SECTION 1.150-2; PROVIDING CERTAIN DETAILS IN
CONNECTION THEREWITH; AND PROVIDING THE
EFFECTIVE DATE HEREOF.
(1) WHEREAS, pursuant to chapter 474, Statutes of Nevada 1977, cited in
Section 1 thereof as the Reno-Tahoe Airport Authority Act, as amended by chapter 668, Statutes
of Nevada 1979 and chapter 369, Statutes of Nevada 2005, and all laws amendatory thereof
(collectively, the “Authority Act”), the Reno-Tahoe Airport Authority (the “Authority”) was
created; and
(2) WHEREAS, the Authority Act provides in effect, among other
provisions, that the board of trustees of the Authority (herein the “Board”) has the authority to
control, operate, and maintain its airports (collectively, the “Airport System”) located within
Washoe County, Nevada (the “County” and the “State”) for the use and benefit of the public; and
(3) WHEREAS, the Authority is a body corporate and politic and a quasi-
municipal corporation, the geographical boundaries of which are conterminous with the
boundaries of the County, and the Authority is a political subdivision for purposes of Section 103
of the Internal Revenue Code of 1986, as amended (the ‘Code”) and Treasury Regulation Section
1.103-1; and
(4) WHEREAS, the Authority and its Board are organized and operating
under the Authority Act and all laws supplemental thereto; and
(5) WHEREAS, pursuant to the Authority Act, as supplemented by the Local
Government Securities Law and all laws amendatory thereof, cited as Nevada Revised Statutes
350.500 through 350.720, and all laws supplemental thereto, the Authority intends to issue in one
or more series, up to $750,000,000 in revenue bonds secured by a lien on the net revenues of the
Airport System (the “Bonds”) for the purpose of acquiring, constructing, improving and
equipping facilities and certain supplemental facilities within the Airport System, including,
without limitation, terminals, hangars, runways and taxiways, aprons, roads, parking lots and
other structures, administration and office buildings, and additional facilities thereat, which are
2.
necessary or convenient to the development of the Airport System and paying related costs (the
“Project”); and
(6) WHEREAS, the Authority expects to incur certain expenditures relating
to the Project prior to the issuance of the Bonds, and the Authority intends to reimburse itself for
such prior expenditures with proceeds of the Bonds; and
(7) WHEREAS, the Board shall adopt its “official intent” declaration in
accordance with Treasury Regulation Section 1.150-2 in order for the Authority to reimburse
expenditures incurred by the Authority with respect to the Project in anticipation of the issuance
of the Bonds, the interest on which will be exempt from gross income for purposes of federal
income taxation, for purposes of Treasury Regulation Section 1.150-2 promulgated under the
Code, and it is intended that this Resolution shall constitute the Board’s “official intent”
declaration as required by Treasury Regulation Section 1.150-2.
NOW, THEREFORE, THE BOARD OF TRUSTEES OF THE RENO-
TAHOE AIRPORT AUTHORITY, NEVADA, DO RESOLVE:
Section 1. Short Title. This resolution shall be known as the, and may be
cited by the short title, “2024 Reimbursement Resolution” (the “Resolution”).
Section 2. Official Intent. The Board hereby declares its intent to reimburse
the costs of the Project from proceeds of the Bonds. This is a declaration of official intent under
Treasury Regulation Section 1.150-2 promulgated under the Code to reimburse under the Code.
Section 3. Reimbursement. In order to permit the Authority to reimburse
itself for prior expenditures relating to the Project from the proceeds of the Bonds issued in one
or more series, the Board hereby determines and declares that:
(a) The maximum aggregate principal amount of the Bonds expected
to be issued for the Project and used to reimburse such expenditures is $750,000,000;
(b) The Board reasonably expects to incur expenditures with respect to
the Project prior to the issuance of the Bonds and to reimburse those expenditures from the
proceeds of the Bonds; and
(c) The payment of costs related to the Project and the reimbursement
of such costs from the proceeds of the Bonds is consistent with the Board’s budgetary and
financial circumstances as of the date of this Resolution. The Board does not currently have
moneys which are, nor does the Board reasonably expect moneys to be, allocated on a long-term
basis, reserved or otherwise available pursuant to the Board’s budget to pay the expenditures
which the Board intends to reimburse.
3.
Section 4. Repealer. All resolutions, or parts thereof, inconsistent herewith
are hereby repealed to the extent only of the inconsistency. This repealer shall not be construed
to revive any resolution, or part thereof, heretofore repealed.
Section 5. Severability. If any section, subsection, paragraph, clause, or other
provision of this Resolution shall for any reason be held to be invalid or unenforceable, the
invalidity or unenforceability of such section, subsection, paragraph, clause, or other provision
shall not affect any of the remaining provisions of this Resolution.
Section 6. Execution of Resolution. This Resolution, immediately on its final
passage and adoption, shall be recorded in the official records of the Authority kept for that
purpose, shall be executed by the signature of the Chairman of the Board, shall be attested by the
Secretary of the Board, and the seal of the Authority shall be affixed thereto.
Section 7. Effective Date. This Resolution shall be in effect upon its
adoption.
On motion by Trustee ___________, second by Trustee_____________________, the foregoing
Resolution No. 568 was passed and adopted this 23
rd
day of May 2024, by the following vote of
the Board:
AYES:
NAYS:
ABSENT: ABSTAIN:
Carol Chaplin, Chair
(SEAL)
Attest:
Adam Kramer, Secretary
Board Memorandum
05/2024-23
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Adoption of Reno-Tahoe Airport Authority Fiscal Year 2024-25 Liability and Property
Insurance Program and Approval of Premiums in the Amount Not to Exceed
$1,630,000
STAFF RECOMMENDATION
Staff recommends that the Board of Trustees approves the Fiscal Year (FY) 2024-25 Liability and
Property Insurance Program and authorize the President/CEO or his designee to bind the coverages
and pay the FY 2024-25 premiums through Arthur J. Gallagher Risk Management Services, Inc.
(AJG) as the Broker of Record, in the amount not to exceed $1,630,000.
BACKGROUND
RTAA has insurance policies to mitigate the risk associated with operating and maintaining the
Reno-Tahoe International Airport (RNO) and the Reno-Stead Airport (RTS). This request covers
insurance protection in the following areas:
1. Property - RTAA purchases insurance to protect against most risks to property, such as
fire, theft, seismic (earthquake) and weather events. RTAA’s property insurance includes
coverage related to the following: (a) damage to real property (buildings, equipment,
runways); (b) fire and associated risks; (c) windstorm/earthquake; (d) flood; (e)
commercial crime; and (f) course of construction - damage to buildings under construction.
In addition, RTAA obtains national flood insurance, and property insurance for potential
damage to RTAA equipment (inland marine) and business autos.
2. Liability - RTAA purchases insurance to protect from the risk of being sued and held
legally liable for activities associated with operating and maintaining both RNO and RTS.
Liability insurance is designed to offer specific protection against third party insurance
claims, (i.e., payment is not typically made to the insured, but rather to someone suffering
a loss who is not a party to the insurance contract). However, such liability insurance
coverage also reimburses RTAA for certain emergency expenses associated with Mutual
Aid Agreements both at RNO and RTS. When a claim is made, the insurance carrier has
the duty (and right) to defend RTAA.
The RTAA’s Liability insurance covers the following areas: (a) airport owners/operators general;
(b) cyber security; (c) public officials including employment practices; (d) law enforcement; (e)
emergency medical technicians. The Liability insurance excludes coverage for the air races or air
Page 2 of 4
show at RTS. The Reno Air Racing Association (RARA) is required to arrange, maintain, and fund
separate liability coverage to include RTAA as an additional insured among other provisions.
The current policies, with the exception of flood insurance, cover the one-year period from July 1,
2023, through June 30, 2024. Policies where the annual premium is less than $25,000, are renewed
for the upcoming year unless changes have occurred in operations or other material changes in
claim service performance, insurance ratings or price increase. Policies renewals where the annual
premiums are greater than $25,000 are typically obtained through a competitive process facilitated
by AJG as the Broker of Record for RTAA. Based on AJG’s counsel the annual marketing process
is not always appropriate as underwriters may lose interest in responding. According to AJG,
RTAA will obtain the most cost-efficient rates by developing long-term partnerships rather than
only being a commodity price buyer. The underwriting landscape has changed, with only a few
key underwriters offering policies of 100% coverage. As a result, most insurance carriers refuse
to “bid” following multiple failures to write policies, or busy enough that they don’t have time to
consider every potential new customer. The insurance business is not immune to staffing
challenges. Maintaining long-term relationships with the underwriting and claim service teams is
a good business practice, it is also beneficial to have historical knowledge of the RTAA business.
Finally, the limit of $25,000 reflects the Nevada Revised Statute (NRS) 332 requirements that
RTAA obtain competitive bids above this limit.
Services provided by AJG include the following:
• Develop underwriting and marketing strategies to competitively secure the best insurance
coverage at the most reasonable costs. Prepare annual marketing strategy reports
identifying anticipated market conditions and propose a marketing strategy for the RTAA’s
major loss exposure areas, prior to policy renewal.
• Analyze the RTAA’s exposure to loss, adequacy of coverage, and develop options on
coverage not currently purchased.
• Obtain bids from the insurance industry, evaluate the commitment and financial stability
of the underwriters, and negotiate the best terms and coverages for the various exposure
areas on behalf of RTAA.
• Provide the following insurance broker services: (1) receive and analyze the underwriter’s
quotations; (2) review new and renewal insurance proposals for accuracy and conformity
to specifications and negotiated coverages; (3) compare proposed policy language to the
prior year and advise RTAA of changes in policy form or coverage; (4) recommend policy
coverage or language changes as necessary; (5) request modifications from the insurers
upon RTAA concurrence, and (6) report and monitor claims activity (claims advocacy).
AJG is headquartered in Itasca, Illinois. The work associated with this project is expected to be
performed by the staff based in Las Vegas, NV and Irvine, CA.
Page 3 of 4
DISCUSSION
The commercial marketplace is facing numerous headwinds and buyers typically face 10-15%
increases in rate on most lines, with the exception of Property and related Difference in Conditions
(DIC) coverage, which are higher. Inflation is surely one of the dynamics of this predicament. The
2024 outlook continues to cite severe weather, supply chain issues, inflationary pressures, and
market capacity for the harder, but leveling market trend. Property has seen its hardest markets
since 9/11 but relief is evident this year, with significantly lower rate increases. Property markets
continue to focus on accurate building valuations, which require appraisals, adding to the overall
cost for every public entity. This is due to increased construction costs related to materials and
labor, exacerbated by supply chain challenges, and the inflationary reality of our economy.
Trends in the property markets consist of reduced capacity, increased deductibles, and higher rates.
Most carriers writing catastrophe (CAT) exposures (earthquake and flood) are continuing to quote
rate increases, but not as severe as 2023, where the market seemed to be in crisis mode. Data
quality is a critical factor in the property sector. Obtaining incumbent and competitive proposals
in a timely manner continues to be challenging. Some of these delays are due to the necessity for
underwriters to model CAT exposures, and review appraisals, which are in many cases mandatory.
In addition, most public entities have the same renewal date of July 1. While Property rates
continue to escalate, 2024 has seen a softening of a continuing harder market. In simple terms, the
severity of the increases is not as dramatic, and there is a sense of stability.
With respect to the aviation liability insurance policy, the market continues to shrink, which points
to earlier comments regarding developing longer-term relationships, not necessarily driven by the
absolute lowest cost. We expect that Starr Aviation, our current airport liability and workers’
compensation insurance carrier, will continue to offer sufficient capacity to write the RTAA
account 100%. Plaguing this sector are the growing claims related to Per- and Polyfluorinated
Substances (PFAS) ground water contamination. Exclusions have now been added universally to
new policies.
In March 2024, AJG began marketing the RTAA FY 2024-25 Liability and Property Insurance
Program to insurance underwriters participating in each line of coverage. This effort has
successfully obtained underwriting commitments and premium quotes sufficient to address
RTAA’s insurance program requirements. The attached “Summary of Insurance Premiums for
Policy Term July 1, 2024 to June 30, 2025” contains the proposed program of coverages, including
the recommended carrier, value limits and deductibles, and proposed premiums. In a few
instances, AJG has provided a “not to exceed premium estimate”, as underwriters for certain lines
of insurance have not yet provided formal proposals.
In summary, the premiums anticipated to fund the FY 2024-25 Liability and Property Insurance
Program are as follows:
FY 2024-25 Liability and Property Insurance Program
Type of Insurance Recommended Carrier
Insurance
Premium
Property Insurance
Property
AIG Insurance*
$840,000
Page 4 of 4
DIC Flood
Evanston Insurance Co
Endurance American
Aspen Specialty*
$239,000
Equipment – Inland Marine
Granite State Insurance Company*
$15,154
National Flood Insurance**
NFIP/Hanover
$25,300
Business Auto
New Hampshire Insurance Co*
$167,224
Total Property
$1,286,678
Liability Insurance
Airport Operations Liability
Starr Aviation
$89,775
Cyber Liability
CFC Underwriting Ltd
$71,328
Public Officials / Employee Practices
Indian Harbor/Kinsale Insurance
$92,480
Law Enforcement
Indian Harbor Insurance
$37,971
Emergency Medical Technician
James River Insurance
$23,982
Crime and Dishonesty
Great American
$16,715
Fiduciary
Great American*
$3,900
Total Liability
$336,151
GRAND TOTAL
$1,622,829
* Premium prices based on a not to exceed basis.
**Note: National Flood Insurance premium is an estimate. The exact premium cannot be determined until the policies
are renewed in February 2025.
FISCAL IMPACT
Insurance renewal premiums outlined above for the FY 2024-25 Liability and Property Insurance
Program total a not to exceed amount of $1,622,829, an 11.8% increase from FY 2023-24 program.
The staff’s recommendation is a total of $1,630,000 anticipating the addition of vehicles and
equipment to the list of insured items that require an additional cost of premiums. The RTAA FY
2024-25 proposed budget includes adequate funding for this expense.
COMMITTEE COORDINATION
Finance and Business Development Committee
PROPOSED MOTION
“It is hereby moved that the Board of Trustees approves the Fiscal Year 2024-25 Liability and
Property Insurance Program and authorizes the President/CEO, or his designee, to bind the
coverages and pay the FY 2024-25 premiums in the amount not to exceed $1,630,000.”
RENO-TAHOE AIRPORT AUTHORITY
SUMMARY OF INSURANCE PREMIUMS FOR POLICY TERM: JULY 1, 2024 TO JUNE 30, 2025
Coverage Recommend Carrier Limits & Deductibles
FY 2024-25
PREMIUM
Surplus
Lines Tax
TOTAL
FY 2024-25
PREMIUM
FY 2023-24
PREMIUM
FY 2024-25
Budget
FY 2024-25
Quote vs.
FY 2023-24
Actual
FY 2024-25
Quote vs.
Budget
Property Insurance
Property
AIG,
Evanston Insurance Co,
AXIS Insurance &Aspen
Specialty
$726,841,453 Property Values
Limit of Liability:
$400,000,000
$50 mil EQ / $25 mil Flood
B & M included
Deductible:
$100,000 /Loss Except:
Flood $100,000; 5% of Property Value subject to
minimum $1,000,000 for special flood hazard areas;
$500,000 for four locations Earthquake
of 10% of Property Value subject to minimum of $250,000
$1,079,000
$1,079,000 $944,517 $1,096,800 14% -2%
Equipment - Inland
Marine
Granite State Insurance
(AIG)
$11,963,275 Total Cash Value
Deductible: $10,000 Per Occurence
$15,154
n/a $15,154 $13,776 $16,000 10% -5%
National Flood
Insurance*
NFIP/Hanover $500,000 Policy Limit per building $25,300
n/a $25,300 $22,977 $25,300 10% 0%
Business Auto
New Hampshire
Insurance Co.
Auto Liability Limit: $1,000,000 CSL
Deductible: $5,000 Comp/Collision
$167,224
n/a $167,224 $149,307 $179,200 12% -7%
Liability Insurance
Airport Operations
Liability
Starr Insurance $250,000,000 Per Occurrence
$250,000,000 Annual Aggregate
Deductible: $0
$89,775 n/a $89,775 $89,775 $89,800 0% 0%
Cyber Liability
CFC Underwriting Ltd. $5,000,000 Per Claim
$5,000,000 Annual Aggregate
Deductible: $50,000
$67,900 $3,428 $71,328 $71,327 $71,300 0% 0%
Public Official
Liability / Employee
Practices Liability
Indian Harbor
Kinsale Insurance
$10,000,000 E&O Annual Aggregate
$10,000,000 EPL Annual Aggregate
Deductible: $100,000
$86,944 $5,536 $92,480 $81,281 $92,700 14% 0%
Law Enforcement
Liability
Indian Harbor Insurance
Co.
$5,000,000 Each Occurrence/Annual Aggregate
Deductible: $50,000 Per Occurrence
$36,301 $1,670 $37,971 $34,573 $38,000 10% 0%
Emergency Medical
Technicians (EMT)
Liability
James River Insurance
Co.
$5,000,000 Annual Aggregate
Deductible: $5,000 Each Claim
$22,806 $1,176 $23,982 $23,981 $25,200 0% -5%
Quotes for FY 2024-25 Renewal Term
Coverage Recommend Carrier Limits & Deductibles
FY 2024-25
PREMIUM
Surplus
Lines Tax
TOTAL
FY 2024-25
PREMIUM
FY 2023-24
PREMIUM
FY 2024-25
Budget
FY 2024-25
Quote vs.
FY 2023-24
Actual
FY 2024-25
Quote vs.
Budget
Quotes for FY 2024-25 Renewal Term
Crime and
Dishonesty
Great American
Limit of Liability:
$5,000,000 Employee Dishonesty
$250,000 Forgery Alteration
$100,000 Inside Premises
$100,000 Outside Premises
$500,000 Computer Fraud
$50,000 Money Orders/ Counterfeit Paper
$500,000 Funds Transfer Fraud Deductible
$250,000 Social Engineering
Deductible:
$10,000
$16,715 n/a $16,715 $16,228 $17,000 3% -2%
Fiduciary Liability
Great American $2,000,000 Annual Aggregate
Deductible:
$1,000 Per Claim
$3,900 n/a $3,900 $3,900 $3,900 0% 0%
TOTAL
$1,611,018
$11,810
$1,622,829
$1,451,642
$1,655,200
11.8%
-2.0%
Note: * NFIP Flood Insurance premium is estimated. Exact premiums can not be determined until policies renew in February, 2025
Board Memorandum
04/2024-24
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Adoption of Resolution No. 566: Amending Resolution No. 548 – A Resolution
Adopting an Update to Policy No. 600-007 on the Financial Incentives for Airlines and
Dedicated Cargo Carriers at the Reno-Tahoe International Airport
STAFF RECOMMENDATION
Staff recommends that the Board adopt Resolution No. 566: Amending Resolution No. 548 - A
Resolution adopting an update to Policy No. 600-007 on the financial incentives for airlines and
dedicated cargo carriers at the Reno-Tahoe International Airport (RNO).
PURPOSE
• To be compliant with the new Federal Aviation Administration (FAA) policy statement
regarding Air Carrier Incentive Programs.
• To remain competitive by offering incentives to air carriers to promote new air service at RNO,
including new passenger airlines, targeted new destinations, targeted underserved destinations
and new dedicated cargo carriers.
• To align with the new RNO Air Service Development Strategy and Goals, and the new Airline
Use and Lease Agreement (AULA) rate and charges methodology.
BACKGROUND
Most airports in the United States offer air service incentives to airlines as a way to attract and
increase air service by both passenger airlines and air cargo carriers and the RTAA has offered
incentives since 2001 (per Policy No. 600-007). The RTAA has updated its program over time and
is once again reviewing its incentive program in light of the FAA’s policy updates in December
2023 as well as the RTAA’s new air service development strategy.
DISCUSSION
The proposed amendment to the current incentives Resolution (No. 548), and update of Policy No.
600-007, would change the following:
The current incentives policy includes airport rental and landing fee waivers, along with marketing
support. Since rental fees go towards paying off airport debt, and airport rental fee waivers are
difficult to administer in an equitable manner, the proposed policy will limit the airport fee waivers
to landing fees only. While the airport fee waivers are reduced, the marketing support will be
enhanced for all categories except cargo.
Page 2 of 3
Under the existing policy, airport fees are waived for qualifying service on a cyclical basis, with a
six-month period of waivers followed by a six-month period with standard fees. The proposed
policy eliminates this cycle and extends the fee waiver for the complete duration of the incentivized
service without breaks.
The proposed policy increased the marketing support amount for the Destination category and
removed the marketing support incentives for the New Cargo Carrier category.
The New Public Charter category was removed from the proposed incentives policy. The new air
service strategy focuses on commercial passenger service and not charters.
Currently, air service incentives are offered to any unserved destination. The proposed incentives
focus on strategically chosen destinations. The Targeted New Destinations category will receive
significantly more attractive incentives and for a longer period which encourages airlines to initiate
service to new strategic destinations. Targeted Underserved Destinations, which is a new category,
incentivizes destinations with high passenger demand but limited existing air service.
The current incentives are pro-rated based on the frequency of flights offered. This approach
sometimes resulted in incentives being too small to significantly impact new service. To address
this, the proposed policy eliminates pro-ration. However, to ensure a meaningful commitment from
airlines, a higher minimum level of service is now required to qualify for incentives. Minimum
service levels, currently required only for the new domestic destination category, will apply to all
categories for incentive eligibility under the proposed policy.
Under the existing policy, airlines must complete the air service incentive program application
within 30 days of the announcement of a qualifying air service. The proposed policy increases this
timeframe to 45 days. A longer deadline gives airlines more time to gather necessary information,
complete the application, and go through internal approval processes.
The current policy summary along with exceptions, clarifications, and limitations are shown in
Exhibit A. A comparison of the current and the proposed incentives is provided in Exhibit B.
Proposed Incentives:
New Entrant Airline:
New Passenger Airline
o Landing Fee Waivers for one year.
o Marketing Support for one year- $50,000.
New Dedicated Cargo Carrier
o Landing Fee Waivers for six months.
Destination:
Targeted New Destination
o Landing Fee Waivers for two years.
o Marketing Support for year one - $100,000
o Marketing Support for year two - $50,000
Page 3 of 3
Targeted Underserved Destination
o Landing Fee Waivers for one year.
o Marketing Support for one year - $100,000
Exceptions, clarifications, and limitations to the above are shown in Exhibit C.
FISCAL IMPACT
The policy update does not impact the FY 2024 budget. Staff has requested incentive funds during
the standard FY 2025 budget process.
To estimate fiscal impact and net revenue, all possible combinations of qualifying criteria were
analyzed. In addition, a sensitivity analysis was applied using conservative flight performance
assumptions, including a 50% load factor on a 175-seat Boeing 737 aircraft for daily service.
Despite these cautious estimates, net revenue remained positive for all combinations considered.
Advertising/marketing support, to the extent available, is funded using aviation fuel tax revenue
derived from a one-cent tax on jet or turbine-powered aircraft fuel at RNO. This source of funding,
authorized under Nevada Revised Statutes (NRS) 365.545, may be used to promote the use of an
airport including increasing the number and availability of flights. Should fuel tax be insufficient,
the RTAA will supplement this program using internal funding generated by Airport operations.
COMMITTEE COORDINATION
None
PROPOSED MOTION
“Move to adopt Resolution No. 566: Amending Resolution No. 548 – A Resolution Adopting an
Update to Policy No. 600-007 on the Financial Incentives for Airlines and Dedicated Cargo
Carriers at the Reno-Tahoe International Airport.”
17583802.1
RESOLUTION NO. 566:
A RESOLUTION AMENDING RESOLUTION NO. 548: A RESOLUTION
ADOPTING AN UPDATE TO POLICY NO. 600-007 ON THE FINANCIAL
INCENTIVES FOR AIRLINE AND DEDICATED CARGO CARRIERS TO THE
RENO-TAHOE INTERNATIONAL AIRPORT
WHEREAS, the Reno-Tahoe Airport Authority’s Strategic Priority is Air Service
and Cargo Development as identified in the FY 2024-2028 Strategic Plan; and
WHEREAS, increased air service and cargo service is vital to the economy of the
Reno-Tahoe region; and
WHEREAS, the Federal Aviation Administration permits airport revenue to be
used for the full costs of activities directed toward promoting competition at an airport,
new air service, and in and out of market marketing support; and
WHEREAS, the Reno-Tahoe International Airport is competing for increased
passenger/cargo traffic with communities and airports that are offering financial incentives;
and
WHEREAS, the Reno-Tahoe Airport Authority desires to establish a competitive
policy to establish financial incentives that may be offered by the Airport Authority to a
New Passenger Airline, an Incumbent Passenger Airline and new Dedicated Cargo Carrier;
and
WHEREAS, an Airline must have an Agreement or an Airline Operating
Agreement with the RTAA in order to qualify for and receive incentive benefits; and
WHEREAS, airlines seeking to participate in the incentive program, must complete
the Air Service Incentive Application form within forty-five (45) days of announcement of
the qualifying air service or forego all eligible incentives offered; and
WHEREAS, participation in the incentive program requires airlines to complete the
Air Service Incentive Contract prior to receiving any benefits; and
WHEREAS, if the airline does not meet their minimum schedule level of service
for the proposed service or the required performance criteria, as identified in the Contract,
then all marketing support amounts paid by the RTAA may require reimbursement; and
WHEREAS, the parent company of an Airline and its subsidiaries are considered
as one Airline; and
WHEREAS, a minimum service frequency of three flights per week is required to
qualify for incentives for a New Passenger Airline, a Targeted New Destination, a Targeted
Underserved Destination and a New Dedicated Cargo Carrier; and
Resolution No. 566 – Adopting Updated Policy No. 600-007
Page 2 of 3
17583802.1
WHEREAS, the President/CEO has the authority to negotiate financial incentive,
to temporarily waive or discount landing fees, and to authorize in and out of market
marketing support for a maximum of 12 months to a New Passenger Airline providing
service to/from a new or an existing destination from the Reno-Tahoe International Airport;
and
WHEREAS, the President/CEO has the authority to negotiate financial incentive,
to temporarily waive or discount landing fees, and to authorize in and out of market
marketing support for a maximum of 24 months to a passenger Airline offering service to
a Targeted New Destination from the Reno-Tahoe International Airport; and
WHEREAS, the President/CEO has the authority to negotiate financial
incentive/inducements, to temporarily waive or discount landing fees, and to authorize in
and out of market marketing support for a maximum of 12 months to a passenger Airline
offering service to a Targeted Underserved Destination from the Reno-Tahoe International
Airport; and
WHEREAS, the President/CEO has the authority to negotiate financial
incentive/inducements, to temporarily waive or discount landing fees for a maximum of
six months to a New Dedicated Cargo Carrier from the Reno-Tahoe International Airport;
and
WHEREAS, Targeted New Destination is defined as one without current nonstop
service and is identified in the current Air Service Development (ASD) strategic plan.
Airlines are not eligible for incentives if they have previously received incentives for the
same destination within the past 12 months; and
WHEREAS, Targeted Underserved Destination is defined as one with insufficient
service to a nonstop destination and is identified in the current ASD Strategic Plan. Airlines
are not eligible for incentives if they have previously received incentives for the same
destination within the past 12 months; and
WHEREAS, the list of Targeted New Destinations and Targeted Underserved
Destination will be reassessed quarterly to ensure incentives align with ASD Strategic Plan
and are subject to change; and
WHEREAS, service can be Seasonal, provided it is for a New Passenger Airline
and/or a Targeted New Destination. A Seasonal service to Targeted Underserved
Destination does not qualify for incentives; and
WHEREAS, a Seasonal service is defined as any scheduled service that upon
announcement is not operated on a published schedule pattern within every month of the
year (January through December), but is operated for three months or more, but less than
seven months in one calendar year; and
WHEREAS, charter operations do not qualify for incentives; and
Resolution No. 566 – Adopting Updated Policy No. 600-007
Page 3 of 3
17583802.1
WHEREAS, marketing incentives are subject to the availability of funds in each
Fiscal Year; and
WHEREAS, landing fees will be waived for a maximum of four flights per day per
airline; and
WHEREAS, this policy will be made public at least 30 days in advance of signing
an agreement with an airline; and
WHEREAS, a copy of Policy No. 600-007, whose terms are referred to herein is
attached hereto and made a part hereof.
NOW, THEREFORE, BE IT RESOLVED by the members of the Board of Trustees
of the Reno-Tahoe Airport Authority that this Resolution on incentives adopts Policy No.
600-007 as amended.
On motion by Trustee _________, second by Trustee _________, the foregoing
Resolution was passed and adopted this 23
rd
day of May 2024, by the following vote of the
Board:
AYES:
NAYS:
ABSENT:
ABSTAIN:
___________________________________
Chairwoman Carol Chaplin
ATTEST:
__________________________
Secretary Adam Kramer
Reno-Tahoe Airport Authority Airline Business Development Department
Policy and Procedures Manual
1
PROPOSED INCENTIVE POLICY FOR AIRLINE AND
DEDICATED CARGO CARRIERS
Policy Number 600-007
PURPOSE
The purpose of this policy is to establish specific guidelines for INCENTIVES that may be
offered by the Reno-Tahoe Airport Authority (RTAA) to any New or Incumbent Passenger
Airline(s) and/or Dedicated Cargo Carrier(s) entering the Reno-Tahoe International
Airport (RNO) marketplace, providing it meets the established criteria defined below.
In establishing the criteria, unless the context otherwise requires, terms will be defined as
follows:
• “Agreement” for a Signatory Airline, shall refer to the Airline Lease and Use
Agreement (AULA). In the case of a non-signatory airline, it shall refer to the
Airline Operating Agreement.
• “Airline” means a person, company, partnership or corporation engaged in the
business of transportation by air of persons, cargo or mail operating under Federal
Aviation Regulation Part 121.
• “Dedicated Cargo Carrier” means an airline dedicated to the transport of cargo, not
a Passenger Airline that also carries cargo.
• “Targeted New Destination” is defined as one without current nonstop service and
is identified in the current Air Service Development (ASD) strategic plan.
• “Targeted Underserved Destination” is defined as one with insufficient service to a
nonstop destination and is identified in the current ASD Strategic Plan.
• “New Passenger Airline” is defined as one without 12 months prior service from
RNO. Airlines are not eligible for incentives based on mergers or acquisitions of
existing RNO airlines.
• “Incumbent Passenger Airline” means an existing airline that currently serves
RNO.
• “Seasonal” is defined as any scheduled service that upon announcement is not
operated on a published schedule pattern within every month of the year (January
through December), but is operated for three months or more, but less than seven
months in one calendar year.
The policy specifically addresses and is limited to meaningful, scheduled and public
service under one of the following conditions:
• A New Passenger Airline.
• A New Passenger Airline which provides non-stop service to/from a Targeted New
Destination or Targeted Underserved Destination;
Reno-Tahoe Airport Authority Airline Business Development Department
Policy and Procedures Manual
2
• An Incumbent Passenger Airline which provides service to/from a Targeted New
Destination and/or Targeted Underserved Destination.
• A new Dedicated Cargo Carrier;
Under the above conditions, an Airline may qualify for landing fee waivers, as well as
marketing support. The “Procedures” section of this document outlines the specific criteria
required to qualify for these Airline incentives and how they will be applied.
This policy details the RTAA Board of Trustees’ approved guidelines, limitations, and
authority delegated to the President/CEO to waive landing fees described in the Agreement
or Airline Operating Agreement. The policy also addresses specific marketing programs
that may be undertaken by the RTAA to support a New Passenger Airline, a new Dedicated
Cargo Carrier, a Targeted New Destination, and/or Targeted Underserved Destination.
RTAA/ REFERENCE
The President/CEO and/or his/her designee are responsible for administering this policy.
This policy and action is permitted under the Federal Aviation Administration Policy
regarding Air Carrier Incentive Program Docket No. FAA-2022-1204.
This policy supports RTAA Resolution No. 566, A Resolution Adopting an update on the
financial incentives for airline and dedicated cargo carriers to the Reno-Tahoe International
Airport, dated May 23, 2024.
POLICY
Landing fees waivers, and marketing support considered in this policy are to be based on
the specific rates for the fiscal year in which the incentive(s) is being considered. It is
understood that the total value of various incentives will vary based on the specific level
of air service being considered (number of flights).
Key components of this policy include the following:
• Airlines interested in participating in the incentive program must complete the air
service incentive program application form within forty-five (45) days of the
announcement of the qualifying air service. Applications received after this
deadline will not be considered for the program. Upon completion of the air service
incentive program application, this policy will be used to determine the specific
terms of the air service incentive contract for each airline.
• An Airline must have an AULA or an Airline Operating Agreement, current
insurance and performance bond as well as be in good standing with the RTAA in
order to qualify for and receive incentive benefits.
Reno-Tahoe Airport Authority Airline Business Development Department
Policy and Procedures Manual
3
• If the Airline does not meet their minimum scheduled level of service, as identified
in the Air Service Incentive Program Application, then all marketing support
amounts paid by RTAA may require reimbursement.
• The parent company of an Airline and its subsidiaries are considered as one Airline.
• Each fiscal year, a finite amount of funds are allocated to airline incentives. As
such, airline incentives will be awarded on a first come, first served basis.
Additionally, incentive funding may become unavailable if the funds are exhausted
before the end of the fiscal year. However, once an airline is approved for
incentives, those incentives are guaranteed even if the period of disbursement
extends into a new fiscal year.
PROCEDURES
1. The procedures for this policy include waiving landing fees for a maximum of two
years. It also includes providing in and/or out of market Advertising/Marketing support
(consistent with FAA guidelines, which prohibit destination marketing) for up to two
years. Incentives may be offered to any New Passenger Airline or Incumbent Airline
or Dedicated Cargo Carrier who meets the conditions outlined in the purpose section.
New Entrant Airline:
New Passenger Airline
o Landing Fee Waivers for one year.
o Marketing Support for one year - $50,000.
New Dedicated Cargo Carrier
o Landing Fee Waivers for six months.
Destination:
Targeted New Destination
o Landing Fee Waivers for two years.
o Marketing Support for year one - $100,000
o Marketing Support for year two - $50,000
Targeted Underserved Destination
o Landing Fee Waivers for one year.
o Marketing Support for one year - $100,000
Exceptions & clarifications to the above:
A minimum of three-weekly flights for New Passenger Airline is required to qualify
for incentives.
A minimum of three-weekly flights per destination is required to qualify for
incentives.
Seasonal Service
Reno-Tahoe Airport Authority Airline Business Development Department
Policy and Procedures Manual
4
o A New Passenger Airline providing only seasonal service receives only half
of the allotted marketing support but benefits from a full waiver of landing
fees.
o Seasonal services to qualifying destination on an incumbent airline receives
only half the allotted marketing support but benefits from a full waiver of
landing fees.
o Seasonal service does not qualify for Targeted Underserved Destination
incentives.
Marketing support is limited until the budget is exhausted.
Airport landing fees will be waived for a maximum of four (4) flights per day per
airline.
A New Entrant Passenger Airline can also be eligible for a Targeted New
Destination and/or Targeted Underserved Destination.
Only marketing incentives are cumulative (i.e. Marketing for New Entrant Airline
+ Marketing for Targeted New Destination/Targeted Underserved Destination).
Landing Fee Waivers are not additive or cumulative. (e.g. if a New Entrant Airline
serves a Targeted Underserved Destination, the Landing Fees will be waived for
only one year. If a New Entrant Airline serves a Targeted New Destination, for
Year 1 the Landing Fees will be waived under the New Entrant Airline or the
Targeted New Destination category. Landing Fee waivers for Year 2 will be
provided under the Targeted New Destination category.)
Landing Fee Waivers will be provided for a maximum of two years.
Targeted New Destinations and Targeted Underserved Destinations will be
reassessed quarterly to ensure incentives align with our strategy and are subject to
change.
Airlines are not eligible for incentives if they have previously received incentives
for the same destination (Targeted New Destination and/or Targeted Underserved
Destination) within the past 12 months.
Incentives qualification criteria will be assessed at the time of application.
Airline must have an AULA or an Airline Operating Agreement, current
insurance and current performance bond and be in good standing with the RTAA
to qualify for incentives.
Air service incentives application and air service incentives contract (Contract)
must be completed before the implementation of incentives. The Contract has
performance criteria as well as a stipulation of incentive reimbursement to the
RTAA for non-performance.
2. Policy must be made public at least 30 days in advance of signing an agreement with
an airline.
3. Charter operations, including operators under Parts 121, 135 and 380, are not included.
4. The above incentives are the maximum level of the President/CEO’s authority. Under
special circumstances, it may be necessary to increase these incentives. When
that occurs, the President/CEO will request authorization from the Board of Trustees.
Reno-Tahoe Airport Authority Airline Business Development Department
Policy and Procedures Manual
5
Daren A. Griffin, A.A.E. President/CEO Date
New Passen
g
er Airline
Through Howard W.
Cannon (HWC) Terminal
Thru HWC
Terminal
Non-HWC
Terminal
Service
5 to 7 weekly fli
g
hts $25,000 5 to 7 weekly fli
g
hts 100%
4 weekly fli
g
hts $20,000 4 weekly fli
g
hts 75%
3 weekly fli
g
hts $15,000 3 weekly fli
g
hts 50%
2 weekly fli
g
hts $10,000 2 weekly fli
g
hts 25%
1 weekly fli
g
h
t
none 1 weekly fli
g
h
t
none
5 to 7 weekly fli
g
hts 100%
4 weekly fli
g
hts 75%
3 weekly fli
g
hts 50%
2 weekly fli
g
hts 25%
1 weekly fli
g
h
t
none
New Destination for
international service
New Dedicated Car
g
o
Carriers
* Waivers (or reimbursements where applicable) are applied on a six (6) months on and six (6) off basis.
- Si
g
natory airlines are not eli
g
ible for airport rental fee waivers.
- Service can be Seasonal, provided it is for a New Passenger Airline, a new Public Charter and/or a new Targeted service.
- Marketin
g
support is also limited to a maximum of two (2) destinations per Airline within a 12 month period.
- Marketin
g
support can be additive.
- Incentive Pro
g
ram Appications must be completed by the airline within 30 days of announcement of the qualifyin
g
service.
- Airline Incentive funds are finite, and will be awarded on a first come, first served basis, until funds are exhaused.
$25,000 regardless of destination
Airport rental fees are NOT waived. Landing Fees
reimbursed based on revenue received by RTAA for a
maximum of 6 months
Exhibit A the Current RNO Air Service Incentives
$25,000
For a maximum of
12 months*
(Prorated)
New Public Charter
Marketin
g
and Advertisin
g
Support
A
irport Rental and Landin
g
Fee Waivers
$50,000
regardless of destination
100% waivers for a maximum of 12 months*
$50,000 regardless of destination 100% waivers for a maximum of 12 months*
- Airport rental fees and landing fees will be waived for a maximum of two (2) flights per day per destination, for a maximum
of 12 months, and for a maximum of two (2) destinations.
New Destination for
domestic service
$25,000
Max
(Prorated)
For a maximum of
6 months*
(Prorated)
New Destination for
targeted domestic
service
$25,000 100% waivers for a maximum of 12 months*
$75,000 100% waivers for a maximum of 12 months*
Marketing
Support
Landing Fee
Waivers
1
New Passen
g
er Airline
$50,000 One year
2
New Public Charter
--
3
New Destination - Domestic
--
4
New Destination - International
--
5
Targeted New Destination
Year 1 - $100,000
Year 2 - $50,000
Two years
6
Targeted Underserved Destination
$100,000 One year
7
New Cargo Carriers
- Six months
A side-by-side comparison of the current and the proposed incentives
Exhibit B
One Year $75,000
One year prorated$25,000
--
Category
Proposed Incentives
Airport Rental +
Landing Fee Waivers
One year
12 months $25,000
Six months to one year
Marketing
Support
$50,000
Current Incentives
$10,000 - $25,000 Six months prorated
$25,000 - $50,000
Exhibit C
Exceptions, clarifications and limitations to the proposed incentives are as follows:
• A minimum of three-weekly flights for New Passenger Airline is required to qualify for
incentives.
• A minimum of three-weekly flights per destination is required to qualify for incentives.
• Seasonal Service
o A New Passenger Airline providing only seasonal service receives only half of the
allotted marketing support but benefits from a full waiver of landing fees.
o Seasonal service to a qualifying destination on an incumbent airline receives only
half the allotted marketing support but benefits from a full waiver of landing fees.
o Seasonal service does not qualify for Targeted Underserved Destination incentives.
• Marketing support is limited until the budget is exhausted.
• Airport landing fees will be waived for a maximum of four (4) flights per day per airline.
• A New Entrant Passenger Airline can also be eligible for a Targeted New Destination
and/or Targeted Underserved Destination.
• Only marketing incentives are cumulative (i.e. Marketing for New Entrant Airline +
Marketing for Targeted New Destination/Targeted Underserved Destination). Landing Fee
Waivers are not additive or cumulative. (e.g. if a New Entrant Airline serves a Targeted
Underserved Destination, the Landing Fees will be waived for only one year. If a New
Entrant Airline serves a Targeted New Destination, for Year 1 the Landing Fees will be
waived under the New Entrant Airline or the Targeted New Destination category. Landing
Fee waivers for Year 2 will be provided under the Targeted New Destination category.)
• Landing Fee Waivers will be provided for a maximum of two years.
• Targeted New Destinations and Targeted Underserved Destinations will be reassessed
quarterly to ensure incentives align with our strategy and are subject to change.
• Airlines are not eligible for incentives if they have previously received incentives for the
same destination (Targeted New Destination and/or Targeted Underserved Destination)
within the past 12 months.
• Incentives qualification criteria will be assessed at the time of application.
• Airline must have an AULA or an Airline Operating Agreement, current insurance and
current performance bond and be in good standing with the RTAA to qualify for
incentives.
• Air service incentives application and air service incentives contract (Contract) must be
completed before the implementation of incentives. The Contract has performance criteria
as well as a stipulation of incentive reimbursement to the RTAA for non-performance.
Board Memorandum
05/2024-25
In Preparation for the Regular Board Meeting on May 23, 2024
Subject: Authorization for the President/CEO to execute an Amendment No. 1, to the
Professional Services Agreement, for design services for 30 to 100% for the HQ Project
at Reno-Tahoe International Airport, with RS&H Company, in an amount of
$6,326,407
STAFF RECOMMENDATION
Staff recommends that the Board adopt the motion stated below.
BACKGROUND
The intent of The HQ project is to provide a multi-use facility to house Airport Police and Airport
Administrative Offices. Airport Police presently occupies the lower level of Concourse B, which
will be demolished when the new Concourse A is completed. The airport Administrative Offices
presently occupy the second floor of the main terminal. The HQ Project brings all administrative
and police functions into a single facility purposely designed for the specific functions, providing
for better collaboration, efficient use of shared common spaces, better police response time to
landside and airside, without ramp aircraft hindering vehicle movements, and is intended to
accommodate a 20-year employment growth/expansion capability. The present administration and
police spaces do not have any expansion ability and have extremely limited collaborative spaces.
In May 2023 a two-phase RTAA Administration Workspace Study was completed with the goal
of identifying an RTAA staff-preferred and Board of Trustees-supported alternative for design.
Currently, the preliminary all-in cost for the project (including design, construction, executive
program management services, relocation costs, furniture, fixture and equipment, etc.) exceeds
RTAA’s allowable expenditures. The RTAA and the EPM anticipate working with the Architect
and the CMAR during the initial stages of the Project to further develop and value engineer the
effort to a more reasonable and affordable project. In negotiating the scope and fee with RS&H
Company, staff have given RS&H a target construction budget of $50 million.
The selection process was as follows:
• Request for Proposals (RFP) was released July 13, 2023.
• Proposals were due August 16, 2023. RTAA received 4 proposals from qualified firms.
• Proposals were reviewed by the selection committee on August 25, 2023. Three firms were
shortlisted for interview: H+K Architects, Van Woert Bigotti, and RS&H.
• Interviews were conducted on September 18, 2023.
• The selection committee consisted of 3 RTAA employees, Executive Program Manager,
and 1 Board of Trustees member, with input from 4 Subject Matter Experts.
Page 2 of 3
• RS&H was unanimously selected as the most responsive and best qualified firm.
Once RS&H received their notice to proceed in November 2023, the team immediately began
validating the basis of design report by interviewing the individual departments that were to
occupy the new HQ. During the validation process, the future 20-year staffing and space
requirements of the departments were reviewed and adjusted. RS&H validated the basis of design
report and initiated revisions, which included integrating with the future Central Utility Plant.
With Clark Sullivan joining the team in January as the CMAR, a value engineering session was
conducted to reduce costs and bring the project closer to the desired $50 million budget for hard
construction costs. An updated basis of design report reflecting these changes was submitted to
the RTAA on March 28, 2024. Subsequently, on April 29, 2024, 30% design documents were
provided, incorporating the outcomes of the value engineering session and the revised staffing
requirements. The updated design successfully accommodates all program requests and 20-year
staffing projections.
DISCUSSION
This amendment to the Professional Services Agreement is to develop the design from 30 to 100%
for the Airport Police station and Administrative Office space – The HQ Project. RS&H completed
30% design at the end of April 2024, with estimated hard construction costs of $60 million.
Table 1 – Design Services Fee Breakdown
Task Amount Firm
Design 0-30% $1,784,664 RS&H
Design 30-100%
$6,326,407
RS&H
Pre-Construction Services 0-30% $38,100 Clark/Sullivan
Pre-Construction Services 30-100% $81,400 Clark/Sullivan
Construction Administration* TBD RS&H
Total
$8,230,571
*Construction Administration (CA) and closeout are not included in this design fee and will be procured
separately.
Table 2 – Design Professional Services Estimate at Completion
Design
(RS&H)
Pre-Construction
Services
(Clark Sullivan)
Other Direct
Costs
Estimate At
Completion
$8,111,071 $119,500 $590,000* $8,820,571
Page 3 of 3
* Other Direct Costs include but are not limited to administrative costs, advertising, printing,
permits, utility company fees, environmental testing, and miscellaneous fees.
The design estimate at completion is a preliminary estimate for budgetary purposes only and
does not include any of the construction costs or fees.
FISCAL IMPACT
This project is a RTAA Capital Improvement Project, and the design services funds were
approved in the RTAA’s Fiscal Year 2023/24, with another portion being requested in the
2024/25 Capital Improvement Project budget process. The construction budget will be submitted
at with the RTAA Capital Improvement Project budget process for FY 2024/25 & FY 2025/26.
COMMITTEE COORDINATION
Planning and Construction Committee
PROPOSED MOTION
“Move to authorize the President/CEO to execute an Amendment No. 1, to the Professional
Services Agreement, for design services for 30-100% for the HQ Project at Reno-Tahoe
International Airport, with RS&H Company, in an amount of $6,326,407.
