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HomeMy WebLinkAboutMinutes Airport Board - 08/29/2003 Minutes Airport Board Meeting August 29,2003 Board Members Present Airport Staff Present Jerry Kane, Chair Dave Hamrick,Director or Aviation Mark Meyer, Member Debra Keller,Assistant Director of Aviation Jan Rehler, Member Terence Whatley, Operations Manager Glenn Lyons, Member Roy Rodriguez, Facilities Manager Frank "Rocco"Montesano, Member Gloria DeLeon, Management Assistant Ramiro Gamboa, Member Nelda Martinez, Member J. C. Ayala, Member Board Members Absent Ed Hicks, Sr., Vice Chair- Excused Willard Hammonds, Sr. -Excused Director's Report Mr. Hamrick provided the Airport Board an update on the following: 1. Entitlement Grants Mr. Hamrick provided an update on the Administration Entitlement Grant, Grant#35, for the amount of$3,076,146 for terminal modifications and rehabilitation of Runway 13131 and explained that this Grant was increased by$1,500,000. A short discussion was held regarding this item. 2. Airline Leases Mr. Hamrick provided an update of the current airlines leases and informed the Board that he met with the President of American Eagle in Dallas and explained that he was informed that American has decided to change their corporate outlook, to intensify their customer service, their community involvement and to change their image. Mr.Hamrick also informed the Board that after conducting a survey, it was found that a large majority of airlines across the country are operating on a 30-day- out contract; and that we were one of the last airports to offer a long-term contract with the airlines. A discussion was held regarding this item. 3. Contract Amendments for Ongoing Construction Projects Mr. Hamrick informed the Board that the contract with DMJM, Construction Project Managers, was terminated and that the Airport hired AGCM, a local firm, to manage the remainder of the construction projects; which CCIA anticipates will be completed by the end of this calendar year. Mr. Hamrick also informed the Board the only overlap of the terminal construction project will be the build-out for TSA and I . A short discussion was held regarding the re-design of the Roadway construction project. Airport Board Meeting August 29,2003 Page 2 of 3 4. Reimbursements from Homeland Security/TSA for Law Enforcement Services Mr. Hamrick informed the Board that Ms. Debra Keller, Assistant Director of Aviation, has negotiated with TSA reimbursement for law enforcement support services at our check point, Mr. Hamrick informed the Board that since two foreign airlines Acrolitoral and Aeromar, have expressed interest in providing air service, CCIA is preparing a Resolution for Council's approval; however, due to time constraints, there may not be time to bring this Resolution before the next Board meeting. Mr. Hamrick explained that Airport staff is working on putting together a more structured request for proposal(RFP). Said RFP will be sent to all airlines so that each airline will have the opportunity to express their interest in providing international air service. A discussion was held regarding the type of aircraft these airlines would use to provide international air service. A discussion was also held regarding previous negotiations between CCIA and Delta for new air service. Mr. Hamrick informed the Board that the proposal with Delta is still under consideration. A quorum was reached at 9.08 am and Chair Kane called the meeting to order. Chair Kane called for a motion on the minutes of the Airport Board meeting held June 11, 2003. Member Gamboa moved to approve the minutes. The Motion was seconded. The minutes were approved as presented. Chair Kane apologized to the Board for not making the August f3'h Board meeting, due to time sensitive issues that arose. Member Lyons also apologized for not making the August 13'h Board meeting due to being stranded out of town. Chair Kane called for a motion on the absence of Vice-Chair Hicks and Member Hammonds. Member Martinez moved to excuse their absence. The Motion was seconded. The Motion passed. Discussion was continued regarding the Council Resolution for the RFP to be provided to all the airlines interested in providing international air service. Ms. Keller informed the Board that the RFP is near completion, The Board asked Airport staff to provide a presentation before the end of the meeting. 5. Project ()Iympus Presentation Mr. Hamrick introduced Roddy Boggus, Mark Swortson, and Jacqueline Zielenski, with PAL, and informed the Board that they were going to provide a presentation on Project Olympus. Mr. Bog s,provided a presentation and an overview of Project Olympus. Some of the major topics covered were: site plan,buildings, environmental assessment process,project schedule, and estimates of probable construction costs. Mr. Boggus explained that one of the most time-critical issues is the EA process; and made the recommendation that this process be started immediately. Mr. Bog also informed the Board that if CCCA is selected for the site of this Project, the anticipated start date is January 2004. Mr. Boggus provided several cost scenarios and also provided a detailed assessment for each scenario. Airport Board Meeting August 29, 2003 Page 3 of 3 The Board asked questions and discussions were held on each of the topics covered on Project Olympus. A short discussion was held regarding the possible need for CCIA to purchase additional land for Project Olympus or to utilize additional purchased land for future projects. After no further discussion on this item, the Board thanked PGAL representatives for their presentation. Ms. Debra Keller and Mr. John Valls,Business Development Manager, provided the Board a draft of the airlines RFP for international air service. Mr. Hamrick explained that all incumbent airlines at CCIA along with Aerolitoral and Aeromar will be given the same opportunity to participate in this P. A short discussion was held regarding various route options airlines could offer CCIA and the revenue possibilities. Mr. Hamrick informed the Board that he along with Mr. Jorge Cruz-Redo, Assistant City Manager and John Valls, Business Development Manager, met with Allegiant Airline representatives. Mr. Hamrick explained as an incentive, several proposal options were looked into, one being an offer that CCIA would reimburse $5.00 a passenger from the Parkffig Revenue,which would be a total of $153,000; however, after research, it was discovered that CCIA could not offer this. Mr. rick stated that CCIA is still in competition with four out of six cities and anticipates he will hear from Allegaint sometime around mid-September. Mr. Hamrick further explained that CCIA would be able to offer an incentive to cover Allegiant's new service advertisement costs and in turn offset this cost from Allegiant's revenue at CCIA. Mr. Valls added that'Allegiant has anticipated a $96,000 expense in advertising costs. A short discussion was held on this item. Mr. Jorge Cruz-Redo stated that CCIA put a good package on the table before Allegiant Representatives and added that both Mr. Hamrick and Mr. Valls have done an excellent job of representing the City and the Airport Board, A short discussion was held regarding the need to provide an RFP vs. an agreement with airlines. Mr. Cruz-Aedo explained since Allegiant is the only airline offering direct service to Las Vegas an RFP is not necessary vs. when you have two airlines expressing interest in providing a certain type of service, for example international air service(Aerolitoral and Aeromar) then it will be necessary to provide all airlines, including incumbent airlines, the same opportunity through an P. Ms. Keller explained that earlier this year, CCIA had sent a memo to incumbent airline managers and it included the option that if they provided any new destinations,domestic or foreign, CCIA would waive some fees. Since we did not receive any response from them we then proceeded to offer this incentive to other airlines. A short discussion was held regarding the minimal number of seats CCIA needs to provide on international service flights and the type of aircraft the airlines would use to provide international service. After no further discussion, the meeting adjourned.