Loading...
HomeMy WebLinkAboutMinutes Airport Board - 06/09/2004 Minutes CORPUS CHRISTI Airport Board Meeting INTERNATIONAL June 9,2004 AIRPORT Board Members City/Airport Staff Jerry Kane, Chairman Dave Hamrick,Director Ed Hicks, Sr.,Vice-Chairman Debra Keller,Assistant Director Glenn E. Lyons, Member Roy Rodriguez,Facilities Manager Wayne Bennett,Member Terence Whatley,Operations Manager Willard Hammonds, Sr.,Member Ralph Zapata,Engineer II Nelda Martinez,Member Celina Y. Pulcher,Management Assistant Mark Meyer,Member AdeI1e Ives, Management Assistant Frank"Rocco'Montesano,Member Don Feferman,Member J.C. Ayala, Member Board Members Absent Jerry Kane, Chairman Glen Lyons The meeting was called to order at 3:37 p.m.by Vice-Chair, Ed Hicks. I. Approval of minutes for the Airport Board meeting held June 9,2004. Vice-Chair Hicks call for motion approving the minutes from the June 9, 2004 Airport Board meeting. Member Montesanto moved and Member Bennett seconded the motion. The motion carried. U. Presentation of plaques to outgoing Board Members and Recognition of New Board Members. Vice-Chair Hicks presented a plaque to Mr. Jan Rehler in recognition of his service as member of the Airport Board. Mr. Rehler thanked the Board for the plaque and commented on the changes during construction of the new airport facility while on the Board. Mr. Gamboa was not present to receive his plaque. Vice-Chair Hicks, on behalf of Chair Kane and himself, welcomed the two new Board members, Wayne Bennett and Don Feferman. Airport Board Minutes Jade 9,2004 Page 2 of 6 III. Director's Report: a. Negotiations with Aeroliteral Airlines Director Hamrick reported that negotiations with Aerolitoral Airlines Had ceased until today when a phone call was received from their corporate office with interest in renegotiating air service to Mexico. Director Hamrick stated that a meeting has been scheduled for June 22 in Monterey, Mexico. He stated that both he and Mrs. Keller would be flying to Mexico for this meeting and would have more to report regarding this matter at the next Board meeting. He also stated that he anticipates meeting with another Mexican airline,Lineas Aereas Aztecas, next month in Mexico City, Mexico, in order to continue pursuing bringing an international flight to CCIA. Vice-Chair Hicks questioned Director Hamrick regarding the status of the U.S. Customs facility build-out within the airport and the estimated completion date of January, 2004. Director Hamrick reported the problems arose with getting approval from U.S. Customs in Washington. He went on to report that both the U.S. Customs and TSA construction was lumped together on a change order to facilitate completion by the contractor, but due to the change order exceeding the 25% maximum allowable for change orders under state law, it was bid out separately which took three months to process. Director Hamrick then went on to state that due to the Board's recommendation and the approval of City Council, the contract was awarded to Beecroft Construction. He stated construction has been underway for one month and Beecroft's schedule estimates the TSA offices will be completed by August 16 and the U.S. Customs office will be complete no later September 20. Discussion was heard regarding the acceptance of international flights once the U.S. Customs office is in operation. b. Alleglant Airlines Director Hamrick handed out copies of correspondence between CCIA and Allegiant Airlines regarding the termination of negotiations for air service. Discussion was heard regarding this topic. Board member Martinez commented that ending negotiations with Allegiant Airlines was a step in the right direction. The Board was in agreement with Director Hamriek's decision of severing ties with Allegiant Airlines. Board member Ayala raised the question of the direction CCIA would pursue regarding new air service. Director Hamrick stated the demand for expanded air service was promising and stated that finding a right match would be the key in resolving this situation. He stated that he would continue his attempts in expanding air service at CCIA. c. Continental Maintenance Facility Director Hamrick introduced Joe Boudreaux with Continental Airlines who is currently working the maintenance facility new to CCIA. Mr. Boudreaux commented briefly on his background with Continental. He also reported on the competition within the airline among 40 mechanics bidding on the opportunity to relocate to Corpus Christi. Mr. Boudreaux is from Houston,Texas. Airport Board Minutes June 9.2004 Page 3 of 6 Discussion with Mr. Boudreaux and Board Members regarding the type of aircraft being serviced at this location, services provided by the facility to these aircrafts, and whether larger aircraft would also be serviced at this location was held. Director Hamrick also discussed his attempt to convince Continental in expanding the facility to a full-fledged maintenance facility. He stated that Continental was very receptive to this offer. Continental has supplied him with the requirements for either a two-bay or four-bay with a staffing level will be a minimum of 60 with a maximum of over 100. This proposal looks promising and Director Hamrick stated he would advise the Board once a decision was reached. Discussion was heard on this topic including the number of aircraft that would be maintained at this facility. Mr. Boudreaux, with Continental, was available to answer the Board members questions. Director Hamrick added the Economic Development Corporation (EDC) would also offer a $5,000/year tax incentive per employee to Continental if their staff reached the minimum of 60 employees at this facility. EDC will be putting the incentive package. Director Hamrick stated that an amendment to the contract that was approved by City Council and the Board was needed in order to proceed with preliminary site drawings and cost estimating. d. American Airlines Lease Director Hamrick reported to the Board of the lengthy delay in getting the leases to City Council as staff was attempting to take all the leases as a package and American Airlines had refused to sign their lease. He stated they have agreed to sign their lease and as part of the lease American Airlines has opted to relocate their ticket counter and ticket counter office in the terminal to the area where Delta was temporarily set up. Chair Hicks requested to know how much space would be available should a charter or another airline be interested in using the space. Director Hamrick responded that the area would be sufficient space for another tenant. e. Restaurant Concessionaire Mrs. Keller recapped on staff s efforts to get food service pre- and post-checkpoint. She reported on a meeting CCIA staff had with Whataburger representatives, with the permission of Mr. Arranza, the current concessionaire, regarding services they anticipate providing at the airport. She stated CCIA staff provided Whataburger representatives with all the information necessary for them to evaluate exactly what services would be provided with respects to food and beverage both pre- and post- checkpoint. They are in the process of compiling a proposal for submittal to CCIA staff. She added that Whataburger is still working with Mr. Arranza to finalize the buy-out of the capital improvements at the airport. Whataburger is also looking into providing a sit-down food and beverage service pre-checkpoint to be located in the area where Chili's is now located. This service will provide alcoholic beverages as Airport Board Minutes June 9,2004 Page 4 of b well as food service post-checkpoint. Mrs. Keller stated that based on the amount of capital Whataburger would be investing in this venture, their motives would appear to be an endowment to the City of Corpus Christi, Whataburger headquarters. Vice-Chair Hicks questioned the present impact the security checkpoint has on food and beverage concessions. Mrs. Keller explained how the new arrangement of the area pre- and post-checkpoint to facility the services Whataburger will be providing. Discussion was heard regarding this topic. Mrs. Keller added that Whataburger has requested exclusivity for prepared food and beverages at CCIA with which she agreed would be an added incentive to their investment of capital. Vice-Chair Hicks asked if Mrs. Keller was speaking of two different vendors, Whataburger and another vendor that has not been determined. Mrs. Keller explained that Whataburger would be the party with which CCIA has a concession agreement. Whataburger would then have those operations, whether they operated the service themselves or whether they operate with another party that has a franchise agreement. Mrs. Keller stated if Whataburger chose to operate with another franchise, they would hold the agreement between themselves. She finalized by stating that CCIA's agreement would be strictly with Whataburger. Discussion continued. E Air Service Development—Sabre Airline Solutions Director Hamrick reported to the Board he was working on negotiations with Sabre Airline Solutions to assist CCIA in expanding air service. Discussion was heard regarding this topic. Director Hamrick felt Sabre's efforts in seeking other air service for CCIA would benefit the community. He also reported that he has contacted Tom Gaylon of the CVB and he has offered to share in the cost of a study regarding this topic. Director Hamrick has also approached the EDC and the Port of Corpus Christi as these organizations are attempting to bring a cruise ship to Corpus Christi. He feels that expanded air service could be a benefit in attracting a cruise ship to this area. Director Hamrick felt having all organizations working together would increase the success rate. Additional discussion was heard regarding this topic. g. Potential tenant for Air Logistics facility Director Hamrick reported to the Board that Enterprise Rent-A-Car approached staff regarding leasing the space in the former Air Logistics facility. He added that Enterprise was unsuccessful in bidding for the five internal car rental concessions. Director Hamrick estimated this lease would generate between $10,000 to $14,000 a month in revenue for the airport. He added that staff would be working through these negotiations and will be bringing the final agreement to the Board for consideration. Discussion was heard regarding this topic. Director Hamrick stated that Enterprise has already had a local contractor assess the site. He mentioned that the possibility of waiving some of the initial revenue in lieu of capital improvements to the facility u ,7u Airporl Board Minutes June 9,2004 Page S of 6 would be considered. This point has not been discussed as yet. Negotiations are in the preliminary stages. Discussion was heard regarding other facilities on CCIA property with potential to be leased. The Semtech facility was discussed. Director Hamrick stated he would update the Board once an agreement is reached. h. HMS Host Lease Amendment for additional space in cargo facility Mrs. Keller explained that HMS Host is the "News and Gift Shop" which has requested storage space which was not in the original lease agreement. Mrs. Keller will be amending their lease that will state they will be renting approximately 520 square feet in the cargo facility at the going rate of$34.15 per square foot annually. She stated the amendment will be brought to the Board for consideration once it has been finalized. i. Personal amenities service for gate area Mrs. Keller stated she had been contacted by a massage therapist who was interested in providing chair massages at the airport. Mrs. Keller explained this type of service is now quite common in the larger airports. She is working with the Legal Department to work out how to begin this service on a trial basis until it can be determined whether this service will become permanent. This service would be located in a high-visibility area across from the"News and Gift Shop". Mrs. Keller felt that providing CCIA's customers with as many amenities as possible to make their visit to the airport as pleasant as possible. Vice-Chair Hicks reported internal discussions with American Airlines regarding this type of service and the consensus was this works in the larger markets where lay- over time is substantial,but with the final destination being Corpus Christi it may not be as successful. Mrs. Keller felt that due to the long wait to go through checkpoint at CCIA, passengers are arriving very early to avoid missing their flights and in that would be more prone to take advantage of this service while waiting for their flight. Since this service would be on a trial basis, Mrs. Keller felt it would be a service to consider. j. Appropriation of 5% CIP match from Capital Reserves Mrs. Keller explained this appropriation would be going before City Council with a 5% CIP match for CCIA's engineering and capital projects. Mrs. Keller explained CCIA only needs 5% to match the 95%grant monies from the FAA. She stated this was an improvement from the past where the match was 10%. These monies will be taken from the capital reserves for this purpose. Director Hamrick added that ordinarily CCIA has received between $500K and $600K in discretionary monies on a yearly basis. This year, CCIA is picking up $3,808,000 and next year is will be$4,042,000 in discretionary monies in addition to entitlements. Director Hamrick stated CCIA has been very aggressive towards this in order to take advantage of Provision 21 for fiscal years '04, '05, '06 and '07. Within this time frame, CCIA only needs to come up with 5% of the match instead Airport Board Minutes June 9, 2004 Page 6 of 6 of 10%. VI. Construction Update a. Update on Construction contract with B.E.Beecroft Co.,Inc. Director Hamrick provided copies of the Construction Schedule. He reported that Beecroft is doing a fantastic job and anticipates an August 16" completion date for the TSA facility. This move will generate additional rental revenue and will allow the demolition and asbestos remediation of the old control tower. Director Hamrick continued with an update on the Roadway Project which is near completion. Landscaping and punch-list items are all that needs to be completed on this project. Vice-Chair Hicks noted on the April 14" meeting minutes discussion on the columns in the airport. He asked for an update on the status of this project. Mrs. Keller reported CCIA has gone through the Purchasing Department for bids from vendors qualified to do the coating process on the columns. She reported the bids are being approved by the Airport Facilities Manager. Mrs. Keller anticipates the work to begin within the next 30 days. b. Tour of new"News & Gift Shop" Mrs.Keller invited Board members to tour the new"News and Gift Shop". VII.Board Business and Reports Vice-Chair Hicks requested action on board member absences for Mark Meyer and Willard Hammonds for the April 14th meeting and for Jerry Kane for this meeting. Nelda Martinez moved to excuse the absences. The motion was seconded and carried. The meeting adjourned at 5:07 p.m.