Change is in the air at CVG

Kris Knochelmann has quickly followed through on a promise to help change the board that runs Cincinnati/Northern Kentucky International Airport.

Since taking over as Kenton County's top elected official in January, Knochelmann has spearheaded efforts that prompted the Kentucky Legislature's decision this week to restructure an airport board long plagued by a lack of accountability, cronyism and secret deal-making.

Knochelmann also has played a critical role in another major board change. The Kenton County Airport Board plans to approve a new travel policy next month – a step toward ending lavish spending by board members attending out-of-town conferences and meetings with airline executives.

"One of the top reasons for looking at board reform is to improve accountability," Knochelmann told The Enquirer. "Everybody now knows there are more eyeballs looking at the board and elected officials."

The new board structure is scheduled to take effect July 1. Under the new law, the Kenton County judge-executive no longer will have complete autonomy to appoint all executive board members. Knowing his airport power could be reduced, Knochelmann called for reform during his campaign. His task force of regional business and political leaders made recommendations to state lawmakers, and four other elected officials now will have the ability to appoint voting board members.

The airport board is charged with how every dollar is spent at one of the region's top economic-development assets. The reform comes at a critical time for CVG, which has been growing low-cost flights after a decade of cuts by dominant carrier Delta Air Lines. The airport's contract with Delta expires on Dec. 31, and the board is charged with negotiating a deal that could eventually help lower some of the nation's highest ticket prices.

"There's great momentum at CVG," Knochelmann said. "Now the board can step out of the limelight and work on the long-term vision and allow the staff to continue doing a phenomenal job of running the airport."

Travel policy to change; more reform may be needed

Knochelmann was in the board room last week pushing for more reform. His presence at the March 16 finance committee meeting helped steer board members to agree on a new policy that caps the amount of money they can spend on travel. It is rare for the Kenton County judge-executive to attend a committee meeting, and Knochelmann has told board members he does not plan to attend many monthly board meetings.

Knochelmann declined to say exactly why he attended the committee meeting. But it was known some board members were pushing for the travel policy to remain status quo – lax guidelines that led The Enquirer in 2013 to uncover excessive spending and other problems with the board.

The Enquirer's months-long investigation prompted Kentucky Auditor Adam Edelen to do his own investigation. The findings guided Knochelmann's task force and sparked the General Assembly to pass the bill this week.

Knochelmann recommended the board implement a daily, or per diem, cap on the amount of airport money that can be spent on meals. He received support during the meeting's discussion from board members Mike Schlotman and Nathan Smith.

In a committee meeting earlier this year, it was recommended that each board member should be allowed to choose either a per diem or continue to expense meals like they always have. The current policy does not limit spending on meals. Board Chairman Bill Robinson did not weigh in on the issue during last week's meeting until the entire committee agreed to recommend to the full board changing to a per-diem policy.

The board is scheduled to vote on the new policy April 20.

"I have been extremely impressed to see the amount of change that Kris has already brought to the board," said Smith, Kentucky Gov. Steve Beshear's appointee to the airport advisory board. "I thought Kris made excellent points – saying we would be more in line with most public boards rather than having a situation where there aren't many rules."

Smith, a leading Northern Kentucky Democratic operative, has been outspoken about board reform.

The recommended new travel policy, however, still may need changes, Knochelmann said. Currently, there is no limit on the number of board members who can attend the same out-of-town conferences and meetings, and the proposed new policy does not recommend changing that. The board has been known to send more members to conferences than some of North America's largest and busiest airports.

"The board needs to evaluate that a little closer," Knochelmann said. "It probably requires some thought, and not simply permitting every board member to attend every meeting. It's something that probably should be based upon (conference) topic; and if they've been to the conference before."

Robinson declined comment through a CVG spokeswoman on the proposed new travel policy.

Two executive board members – Tim Mauntel and Bob Cooper – are scheduled to attend an industry conference April 12-14 in New Orleans. Robinson said they volunteered to attend the conference.

Knochelmann: No plan to call for resignations

The money used for board travel is not generated from taxpayers. The funds are generated from the flying public and other airport business, and local business and leisure fliers have long been frustrated about the airport's high fares and Delta's cuts.

The new executive board will have 13 voting members appointed by the Kentucky governor and judges-executive of Kenton, Boone, Campbell and Grant counties. Kenton County will maintain a majority eight of the appointments, and the 11-member non-voting advisory board will be eliminated.

Many believe the new structure will help end the good-old-boy politics that were prevalent on the board for decades. Knochelmann made the board's issues a focus of his campaign, and he beat incumbent Steve Arlinghaus in last year's Republican primary.

Arlinghaus continued to back some board members, even as The Enquirer's months-long investigation uncovered the excessive spending on travel, post-meeting meals and alcohol and a failed attempt to fire airport CEO Candace McGraw.

The seven current executive board members were originally appointed or re-appointed by Arlinghaus. Six of the board members or their spouses donated to Arlinghaus' 2014 campaign, according to an Enquirer analysis of Kentucky campaign finance reports. Schlotman, Kroger's chief financial officer, is the only executive board member who did not contribute to Arlinghaus' campaign.

All the board members' terms are scheduled to extend beyond June 30, and Knochelmann said he does not plan to call for anyone's resignation.

"I think everybody (on the board) now has the best interest of the airport and the community in mind," Knochelmann said. "Even though there may be some disagreement about the past, everybody's looking to the future."