Board of Directors Meeting. June 2021

Board of Directors Meeting

Agenda Item 3(a)

Resolution Honoring

Mayor Joseph J. Solomon, Sr.

Agenda Item 3(b)

Air Service Report

Presented by:

Brian Schattle

Senior Vice President, Chief Financial Officer

0% 20% 40% 60% 80% 100% 120% Jan

2020 2020Feb 2020Mar 2020Apr 2020May 2020Jun 2020Jul 2020Aug 2020Sep 2020Oct 2020Nov 2020Dec 2021Jan 2021Feb 2021Mar 2021Apr 2021May 2021Jun 2021Jul 2021Aug 2021Sep 2021Oct 2021Nov 2021Dec 2022Jan 2022Feb 2022Mar 2022Apr 2022May 2022Jun 0% 20% 40% 60% 80% 100% 120% Monthly Capacity as % of 2019 Le ve ls

PVD Monthly Enplanements as % of Baseline 2019 - three scenarios

Highly Optimistic Enplanements as % Optimistic Enplanements as % Pessimistic Enplanements as % 2019 Baseline % Actual Enplanements Airlines' Own Forecast

Enplanement levels have recovered to forecasted levels after four surges

(three more than our assumption)

Note: Rhode Island daily new cases of Covid-19, 7-day rolling average shown. Second and third waves were not contemplated

2019 baseline

April Average |

Daily carrier seats & departures

DAILY CARRIER SEATS DAILY CARRIER DEPARTURES

FY2020

FY2021

DEPLANEMENTS ENPLANEMENTS TOTAL

1648%

1941%

1785%

April MTD |

Airline passenger activity

FY2020

FY2021

DEPLANEMENTS ENPLANEMENTS TOTAL

-65.5%

-64.8%

-65.2%

Agenda Item 3(c)

Airport Financial Report

Presented by:

Brian Schattle

Senior Vice President, Chief Financial Officer

Landing Fees $1,899,845 $4,033,216 -52.90% Terminal Buildings 10,030,968 8,663,898 15.78%

Apron Fees 558,342 565,441 -1.26%

Loading Bridges & Other 126,240 335,492 -62.37%

Aircraft Parking 7,000 98,950 -92.93%

Sub Total $12,622,395 $13,696,997 -7.85%

Financial Update |

March statement of revenues & expenses

Food & Beverage $15,021 $212,764 -92.94%

News & Gifts 42,061 149,406 -71.85%

Advertising 41,453 45,724 -9.34%

Rent - Non-Airline 62,919 94,650 -33.52% Tie Down & Hangar Rent 139,756 136,605 2.31%

Fuel Flowage Fees 64,238 65,739 -2.28%

Landing Fees - General Aviation 25,508 44,448 -42.61% Utilities Reimbursement 11,583 35,013 -66.92% Miscellaneous Revenues & Reimbursements 15,665 17,533 -10.65% Automobile Parking-General 215,535 1,161,796 -81.45% Rental Car Revenues 292,298 787,907 -62.90% Off-Airport Parking Fees 8,205 49,120 -83.30% Off-Airport Courtesy Fees 15,685 60,953 -74.27% Federal Operating Reimbursements 1,032,197 13,795 7382.40%

Total Non-Airline Revenues $1,982,124 $2,875,453 -31.07%

FYTD-2021

March

FYTD-2020

March VARIANCE

Airline Revenues

Non-Airline Revenues

11

Food & Beverage $249,692 $1,927,086 -87.04% News & Gifts 377,190 1,004,832 -62.46%

Advertising 311,246 371,404 -16.20%

Rent - Non-Airline 539,586 868,568 -37.88% Tie Down & Hangar Rent 1,259,209 1,233,918 2.05%

Fuel Flowage Fees 643,119 622,636 3.29%

Landing Fees - General Aviation 271,908 335,697 -19.00% Utilities Reimbursement 114,478 295,490 -61.26% Miscellaneous Revenues & Reimbursements 96,219 155,352 -38.06% Automobile Parking-General 2,590,626 12,166,343 -78.71% Rental Car Revenues 2,425,438 4,860,741 -50.10% Off-Airport Parking Fees 100,062 552,186 -81.88% Off-Airport Courtesy Fees 195,702 518,672 -62.27% Federal Operating Reimbursements 9,195,183 152,094 5945.72%

Financial Update |

March statement of revenues & expenses

Wages _{$7,217,513 $7,333,192 -1.58%}

Overtime - ARFF 397,726 304,323 30.69%

Overtime - Police 232,919 262,720 -11.34% Overtime - Other _{373,008 300,546 24.11%} Taxes & Benefits _{2,871,318 3,094,991 -7.23%} Advertising, Printing & Marketing _{465,154 1,075,573 -56.75%} Communications & Utilities _{1,378,000 1,897,778 -27.39%} Travel, Training & Dues _{156,459 155,835 0.40%} Supplies & Materials _{763,143 670,013 13.90%} Repairs & Maintenance _{610,101 628,420 -2.92%} Contractual Services _{3,141,611 3,364,430 -6.62%} Federal Government Services _{- 638,415 -100.00%}

Legal Fees _{176,103 147,840 19.12%}

Professional Services _{190,992 247,848 -22.94%}

Insurance _{459,489 385,724 19.12%}

Payment to City of Warwick _{375,002 375,002 0.00%} Miscellaneous Expenses _{70,645 37,902 86.39%}

Total Operating Expenses – T. F. Green _{$18,879,184 $20,924,567 -9.78%}

Operating Expenses

March VARIANCE

FYTD-2020

Financial Update |

March statement of revenues & expenses

Revenues - GA Airports $1,480,066 $1,681,519 -11.98% Operating Exp - GA Airports (2,933,051) (2,038,216) 43.90% Quonset Real Estate Income, Net 586,501 586,503 0.00%

General Aviation Airports, Net Operating Income (Loss) $(866,484) $229,806 -477.05% All Airports, Net Operating Income $11,246,385 $18,067,255 -37.75%

Air Service Marketing _{- $1,771 -100.00%}

Passenger Facility Charge Income $1,344,091 $5,125,715 -73.78% Interest Income 71,412 1,545,990 -95.38% Interest Expense - Bonds and Leases (5,679,068) (5,791,951) -1.95% Amortization & Depreciation (16,504,407) (17,034,813) -3.11% Grant and Contributed Capital, Net 12,653,079 614,686 1958.46% Other Income (Expense) 14,238 1,049,482 -98.64%

Total Other Non-Operating Revenues (Expenses) $(8,100,655) $(14,490,891) 44.10%

Facility Revenues $3,571,258 $7,396,667 -51.72% Operating & Maintenance Expenses (2,408,459) (2,375,232) 1.40% Depreciation Expense (3,251,286) (3,276,381) -0.77% Interest Expense - Bonds (2,817,302) (2,948,847) -4.46%

Interlink Net Income (Loss) $(4,905,789) $(1,203,793) -307.53% Net Income RIAC $(1,760,058) $2,370,800 -174.24%

General Aviation Airports

Interlink Facility

FYTD-2021

March FYTD-2020March VARIANCE

Agenda Item 3(d)

General Aviation Strategic Business Plan

Planning Update

Presented by:

Dennis Greco

Senior Vice President, Chief Operations Officer

A final report will be developed and communicated outlining the Strategic Business Plan

process and findings for each general aviation airport

Completed S.W.O.T. Analysis, May 2021

Phase III – Complete by November 2021

Phase I - Completed March 2020

Phase II - Completed May 2021

Complete Final Draft Report, May-August 2021

Present Draft Final Plan to RIAC Board, Sept. 2021

Post Draft Final Plan - Public Comment, Oct. 2021

Finalize Plan and Post to Website, Nov. 2021 Initial Outreach on Purpose of Plan

11 Municipalities & 41 Stakeholders

Dedicated Webpage Created 57 Documents Posted to Date

13 Meetings with State Officials, Local Leaders, Community Members, & Stakeholders

Consultants Hired to Conduct Three Primary Infrastructure Assessments

1) Pavements 2) Facilities 3) Obstructions Consultant Hired to Conduct Financial Plan Related to Assessments, Economic Opportunities, & Forecast Revenues/ Expenses

Second Round of Outreach on Status of Plan and to Request Input On Each GA Airport

11 Municipalities & 41 Stakeholders 15 Meetings with State Officials, Local Leaders,

and Stakeholders Including 5 Public Meetings

Dedicated Webpage Updated to Include Meeting Minutes & Presentations for Transparency Three Infrastructure Draft Assessments Under

Review & Will Inform Phase III Final Report 1) Pavements 2) Facilities 3) Obstructions

Response to Last Month’s Public Comments

Fact: Entitlement funds are not “earmarked” for the sole purpose of those primary non-hub airports. RIAC uses these entitlement funds across the airport system to ensure safety. This use is subject to the FAA’s approval based on justification and reasonableness of scope of work.

Comment: “(Airport user) has written Mr. Andrade, Mr. McCurley, Ms. Fadden and Mr. Greco to ask about this without a response…”

Fact: RIAC has threads of emails between this commenter and the personnel identified which have been shared with board members and elected officials.

Comment: “only airport in the region which only has 25 paved parking places available for up to 100 aircraft”

Fact: BID currently has a combined 67 tie-downs/parking positions on turf and ramp areas. FlightLevel has reported in public forums that they have not turned away any aircraft due to lack of space.

Comment: “The displacing of threshold will strand Newport placed aircraft and also prevent charter and fractural (sic) ownership aircraft from using this field.”

Fact: Prior to displacing the threshold, RIAC contacted and received feedback from the fractional aircraft ownership company, PlaneSense, who informed RIAC that the threshold would not affect their operations.

Comment: “we know that you plan to restrict access to the parking area at the Block Island and Westerly State Airports in order to charge parking fees.”

Agenda Item 3(e)

System Wide Obstruction Removal Program

Update

Presented by:

Dan Porter

Vice President, Planning

RIAC identified 1816 obstructions for the first time in RIAC’s history

Example - UUU

Newport Westerly North Central Quonset Block Island Total Data Points

On Airport Penetrating 110 61 145 111 60 487

On Airport Near 180 125 253 71 130 759

Off Airport Penetrating 68 98 32 54 19 271

Off Airport Near 55 132 35 23 54 299

Total Data Points 413 416 465 259 263 1816

Avigation Easements 33 25 4 5 9 76

Now it is time to act

Article A – Environmental Assessments

•

FAA approved funding, FFY22 Grant

•

Notice to Proceed issued – All GA Airports

Article B – Avigation Easements

•

FAA approved funding, FFY22 Grant

•

Notice to Proceed issued– OQU Runway 16 (five non-residential easements)

Article C – Clearing Design, Permitting, and Construction Services

•

Effort will clear 579 of the 1,816 data points (32%)

•

FAA approved funding, FFY22 Grant

•

Notice to Proceed pending RIAC Board approval in August 2021

Ø

OQU 16, SFZ 15 33, WST 25 32, BID 28

•

Initiate wetland permitting

•

Initiate design for April 2022 bid, and May 1, 2022 grant submission

Estimated Planning Level Cost Estimate

Agenda Item 3(f)

Airport Marketing Update

Presented by:

Kellie Wright

Assistant Vice President, Chief Marketing Officer

Highlighting new service from Breeze through multiple advertising and marketing channels

Agenda Item 3(g)

RIAC to Redevelop Website

Presented by:

Kellie Wright

Assistant Vice President, Chief Marketing Officer

Aviatrix Communications exclusively works with airports and is

a powerhouse in responsive airport website development

24

Website developer: Aviatrix Communications Kickoff date: July 2021

Completion date: March 2022

Estimated cost: $100,000 for website development and five years of hosting

and maintenance

Benefits: Increased conversion rates, brand awareness, and improved

customer satisfaction.

Deliverables Include:

• Wireframes and Interactive Prototype

Designs

• Finalization of Sitemap

• Website Development

• UX/UI Planning

• Search Engine Optimization (SEO)

• Content Strategy and Development

• Quality Assurance and Testing

• Content Management System,

Training and Ongoing Support

• Site Migration

• Robust Analytics

• Annual Maintenance

• Determine Secure Framework and

Hosting

• Integration and Enhancement of

Terminal Maps

Action Item 5(a)

SFZ Wildlife Fence Installation, Repair,

and Replacement

Presented by:

Marion White

Vice President, Design and Construction

Exhibit 1

SFZ Wildlife Fence Installation, Repair, and Replacement

Scope

• Approximately 10,000 feet of new fence • Grubbing and clearing

• Repair and replacement of sections of existing fence • Installation of wildlife skirt and access gates

Procurement

• IFB Advertised April 5, 2021

• Bids opened April 21, 2021 : Three Contractors submitted bids

Schedule

• Notice to Proceed- August 2021

To authorize the President and CEO, or his designee, to execute a construction contract with

GB Hastie Fence Co, Inc. in the amount of $984,495 to install new wildlife fence and repair or

replace parts of the existing fence at North Central State Airport (SFZ).

Action Item 5(b)

PVD Wayfinding Signage Replacement

Presented by:

Marion White

Vice President, Design and Construction

Exhibit 2

RIAC continues to upgrade the terminal with wayfinding signage for passenger ease

Scope

• Manufacturing of 44 wayfinding signs, one freestanding informational kiosk, and one freestanding pay station surround

• Removal and disposal of the existing signs

• Installation of the new signs and freestanding structures Procurement

• IFB Advertised April 12, 2021

• Bids opened April 23, 2021: Four Contractors submitted bids

Schedule

• Notice to Proceed - June 2021

To authorize the President and CEO, or his designee, to execute a construction contract with

Design Communications, Ltd. in the amount of $170,950 to manufacture new exterior

wayfinding signage and replace the existing signage, along with manufacturing and installing

one freestanding informational kiosk and one freestanding pay station surround, at T. F. Green

Airport (PVD).

30

Action Item 5(c)

PVD Surveillance System Upgrade

Phase 1 and Phase 2

Presented by:

Marion White

Vice President, Design and Construction

Exhibit 3

RIAC continues to upgrade the terminal with updates to the required camera system

Scope of Construction

• Installation of a new hosting environment to support the Genetec Video Surveillance system

• Construction of an update and replacement of the information storage nodes and servers to support the camera systems

Procurement

• RFP advertised April 13, 2021

• Proposals received April 23, 2021: Three Firms submitted proposals

Schedule

PVD Surveillance System Phase 2 for the security cameras and video network

Scope of Design

• Upgrade and replacement of the security cameras and network infrastructure • Recommendations in a design report followed by

construction documents Procurement

• Advertised November 6, 2020

• Proposals received November 24, 2020

§ Eight Firms submitted proposals

Schedule

To authorize the President and CEO, or his designee, to execute a construction contract with

Siemens, Inc. in the amount of $618,133 to complete the Phase 1 implementation of server

and storage elements for the Video Surveillance System (VSS) upgrade project at T. F. Green

Airport and to execute the Phase 2 VSS Camera Design Services with Faith Group, LLC (FG) in

the amount of $161,220.56 as a separate Professional Services Agreement for reimbursement

with a FY2022 grant application to be submitted next year.

Action Item 5(d)

Insurance Premium Renewals 2021

Presented by:

Brian Schattle

Senior Vice President, Chief Financial Officer

Exhibit 4

Insurance Premium Comparison (2020 vs 2021)

Renewal Coverage Insurer _{Expiring Premium}2020 _{Renewal Premium}2021 Difference Change _(%) Industry Expectation _2021-2022

6/30/2021 Property Zurich $372,500 $446,070 $73,570 20% 25-30%

6/30/2021 Aviation Liability QBE $88,500 $95,000 $6,500 7% 30-50%

6/30/2021 Excess Aviation Liability Global Aerospace $18,500 $21,657 $3,157 17% 20-40+% 6/30/2021 Automobile New Hampshire Insurance _Co. $60,444 $64,506 $4,062 7% 5-15% 6/30/2021 Mobile Equipment The Hartford $32,850 $35,068 $2,218 7% 7-9%

6/30/2021 Hull and Liability QBE $48,875 $52,920 $4,045 8% 10-15%

6/30/2021 Workers Compensation Starr $357,387 $243,289 ($114,098) -32% 10-30%

6/30/2021 Foreign Liability ACE American $2,500 $2,500 $0 0% +/- 5%

6/30/2021 Cyber Chubb + Zurich $12,685 $35,513 $22,828 180% 30+%

6/30/2021 Premises Pollution (5 _{year term)} Great American $43,253 $43,253 $0 0% Flat-15% 6/30/2021 Public Officials Chubb + Ironshore $155,464 $169,358 $13,894 9% 20-70% 6/30/2021 Fiduciary Travelers A.M. Best A++ $6,923 $7,968 $1,045 15% 15-70%

6/30/2021 Crime Travelers A.M. Best A++ $6,270 $6,598 $328 5% 5-15+%

4/21/2021 UST ACE A.M. Best A+ $909 $1,120 $211 23%

--Total $1,207,060 $1,224,820 1.47%

RIAC 1.5%

Regional

Airports 5% - 30%

Benchmarking

Total Insurance Portfolio

(2021 to 2022)

*Regional airports benchmarked include BOS, MHT, BDL which are based on estimated

Recommendation

Action Item 5(e)

Purchase & Sale Agreement,

541 Main Avenue

Presented by:

David Cloutier

Assistant Vice President, Business Development & Commercial Programs

Exhibit 5

RIAC to purchase 541 Main Avenue for $310,000

• Parcel directly abuts T. F. Green Airport property

• 0.47-acre parcel residential parcel improved with single family residence. RIAC also receives right-of-first refusal for future purchase of an additional 3.5 acres of adjacent land (4 lots) • Seller: S. Palumbo Realty Corporation

• 60-day RIAC due diligence period

• Closing will be 30 days after the expiration of the due diligence period

T

o approve the President and CEO, or his designee, to execute a Purchase and Sale Agreement

with S. Palumbo Realty Corporation in the amount of $310,000 for the purchase of 541 Main

Avenue, Warwick, Rhode Island including an unconditional right of first refusal for adjacent

parcels, in substantially the form presented.

Action Item 5(f)

Grove Bay Concessions, First Amendment

Presented by:

David Cloutier

Assistant Vice President, Business Development & Commercial Programs

Exhibit 6

Grove Bay – first amendment to concession agreement

• DBE concessionaire based in Miami

• Awarded contract resulting from RFP issued 7/3/20 Current Agreement

• One Year 11/4/20 - 11/3/21, extended through 11/3/22 per the terms of the agreement

• Currently Operated Concepts:

• Wolfgang Puck Express and Providence Provisions • Percentage Rent:

• Food 15.1%, Alcoholic Beverages 19.1% Proposed First Amendment

• Expand concept locations to include Food Court area

• Percentage rent and all other terms and conditions remain intact Benefit

To approve the President and CEO, or his designee, to execute a First Amendment to the

Concession Agreement between RIAC and Grove Bay Concessions, LLC to add additional

premises to the agreement to accommodate mid-term passenger traffic, in substantially the

form presented.

Action Item 5(g)

Signatory Airline Agreement

Presented by:

Brian Schattle

Senior Vice President, Chief Financial Officer

Exhibit 7

RIAC will work with the airlines on lease agreements

45

Signatory Airlines Non-Signatory

Airlines

American

Air Canada

Delta

Breeze

JetBlue

Allegiant

Southwest

Frontier

United

Southern Airways

FedEx

Sun Country

UPS

• The term of the current Signatory Airline Agreement is through June 30, 2021 • The Signatory Airlines have shared an interest in extending the current agreement • Due to impacts of the COVID-19 pandemic and the continued fluidity over the past

year, the term length and potential adjustments to assigned premises are being reviewed

To authorize the President and CEO, or his designee, to execute a single-year or multi-year extension

to the Signatory Airline Agreement or establish Rates by Resolution effective July 1, 2021.

Action Item 5(h)

FuseIdeas

Presented by:

Kellie Wright

Assistant Vice President, Chief Marketing Officer

Exhibit 8

FuseIdeas to provide impactful marketing and advertising services

to promote T. F. Green Airport highlighting brand and services

• FuseIdeas was selected and approved by the BOD at the November 2019 BOD meeting to provide:

• marketing,

• creative services, • media buying,

• advertising services and

• other support services to RIAC

• We recommend continuing the marketing support and to enter into task orders with FuseIdeas up to the amount included in the fiscal years’ budgets

To approve the President and CEO, or his designee, to enter into task orders with FuseIdeas up

to the amount included in the fiscal year’s budgets to provide marketing, creative services,

media buying, advertising services, and other support services to RIAC.

49

Action Item 7(c)

2119 Post Road

Presented by:

David Cloutier

Assistant Vice President, Business Development & Commercial Programs

Exhibit 9

RIAC to receive $3,575,000 from the sale of 2119 Post Road

• 6.5-acre parcel purchased in 2016 for $3.0M with the intent to resell the property

• Former off-airport parking location • Purchaser, W SPH Investments, LLC

• Deed restrictions for off-airport parking and recognition of appropriate avigation easements

• 60-day due diligence period followed by a 120-day permitting period

• Deposits - $200,000 at the signing of the P&S and $200,000 at the end of the due diligence period • Closing will be 30 days after the expiration of the

To approve the President and CEO, or his designee, to execute a Purchase and Sale Agreement

with W SPH Investments, LLC (W SPH) in the amount of $3,575,000 for the sale of 2119 Post

Road, Warwick, Rhode Island, in substantially the form presented.