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HomeMy WebLinkAboutMinutes Airport Board - 08/11/2004 Minutes CORPUS CHRIST) Airport Board Meeting INTERNATIONAL August 11,2004 AIRPORT Board Members Ci!y/Airport Staff 0 Jerry Kane, Chairman 0 Dave Hamrick, Director 0 Ed Hicks, Sr.,Vice-Chairman Z Debra Keller,Assistant Director Glenn E. Lyons, Member 0 Roy Rodriguez,Facilities Manager Wayne Bennett, Member Ej Celina Y. Pulcher,Management Assistant Willard Hammonds, Sr., Member Adelle Ives,Management Assistant Nelda Martinez, Member Mark Meyer, Member Frank"Rocco"Montesano,Member Don Feferman, Member J.C. Ayala, Member At 3:40 p.m., there was no quorum present. Due to the absence of both the Chair and Vice- Chair, Senior Board Member Rocco Montesanto, acting as Interim Chair, asked that those guests in attendance introduce themselves. After brief introductions,Interim Chair Montesanto changed the order of business beginning with the Director's Report. I. Director's Report 2. Airport Hotel RFP Director Hamrick gave the Board a brief overview of what has transpired since the last Board meeting. He stated that a Hotel RFP would be brought before the Board once it has been finalized. b. CCIA Master Plan Director Hamrick informed the Board that Board members Ayala and Feferrnan had signed up to be on the Master Plan Committee. He also let the Board know that he would soon be sending more information regarding the Master Plan to the Board. Member Lyons arrived at 3:43 p.m. and a quorum was present. C. Restaurant Concessionaire Director Hamrick informed the Board that he had received a fax from the lawyer representing the current concessionaire regarding comments in an article in the newspaper made by CC 's Public Relations/Marketing Coordinator, Amy Gazin. Director Hamrick stated that he is still working on securing another concessionaire for the airport. Airport Board Mirrutes August 11,2004 Page 2 of 6 d. Air Service Development—Sabre Consulting Services Director Hamrick reported that he has been contact with Sabre Consulting Services who is working on a proposal on market stats. He also commented on how he was impressed with their expertise. He stated that he would soon have the final agreement to bring before the Board. e. Power Port Agreement Asst. Director of Aviation Debra Keller informed the Board of the new Power Port facilities to be located within the Airport Terminal. This company will provide power to computer equipment along with batteries replacements. Mrs. Keller stated she would be bringing an agreement before the Board for this company. At this point, Interim Chair Montesanto called the meeting to order moved to the next order of business, I1. Interim Chair Montesanto called for a motion approving the minutes from the July 14, 2004 Airport Board meeting. Member laeferman moved and Member Meyer second the motion. The motion carried and the minutes were approved as read. III. Action Items: a. Motion recommending an Ordinance authorizing the City Manager, or his designee, to execute Amendment #2 to the lease agreement between the General Services Administration (GSA), acting for the Transportation Security Administration (TSA), and the City of Corpus Christi by extending the lease term for eleven (11) months through September 30, 2004, at the same rental rate and square footage; and declaring an emergency. Director Hamrick gave a brief explanation on this item. Discussion was heard regarding this item. Interim Chair Montesanto instructed that all the Action Items would be presented to the Board and voted on as a whole. b. Motion recommending an Ordinance Appropriating $97,334.75 in the Airport Capital Reserve Fund 4611 from the Unreserved Fund Balance for engineering services for Airport improvements, amending FY 2004-05 Operating Budget adopted by Ordinance No. 025878 to increase appropriations by$48,080; and declaring an emergency. Mrs. Keller explained that the increase of $48,080 was to pay PGAL for architectural and engineering services. This has been amended to fund into the rates and charges and pays for capital improvements projects and also is matching funds for grants which can be used for either operating or capital improvement projects. Mrs. Keller stated that a total of$97,354.75 would be transferred to the Airport Capital Improvement Fund. C. Authorizing the City Manager or his designee to execute a long term lease expiring Septmeber 30, 2015, with the Federal Aviation Administration for an Airport Surveillance Radar Facility Site at Evelyn Price Park located in Airport Board Minutes August 11,2004 Page 3 of 6 the City of Corpus Christi; providing for publication. Director Hamrick explained how this item extended the lease already in effect with the FAA regarding the use of the radar on City property. d. Recommend Ordinance appropriating $109,691 from the Federal Aviation Administration Grant No. 32 in the No. 3020 Airport Capital Improvement Fund, for construction of the Terminal Apron, Phase 1I; amending FY 2003- 2004 Capital Budget adopted by Ordinance No. 025647 to increase appropriations by $109,691; and declaring an emergency. Director Hamrick reported that these funds would allow the parking lot used by the construction crews to be repaved with asphalt and concrete for terminal use. Funding is provided by FAA Grant No. 32. Member Martinez moved to approve Action Items a, b, c and d. Glen Lyons seconded and the motion carried. IV. public Comment a. Enterprise Rent A Car Presentation Director Hamrick gave an update the Board on this topic. He explained that Juan Medrano with Enterprise Rent A Car had approached staff on wanting to lease the old Air Logistics building to move their operations near the airport. He also added that Enterprise was willing to invest in renovations to the building to make it suitable to their needs. Director Hamrick informed the Board on the current arrangements with the five existing rental car agencies located within the terminal and their concerns. All five agencies were represented at this Board meeting. Attorney, Bruce Hawn, representing Hertz and Avis gave a short presentation on his clients concerns on allowing Enterprise to lease the old Air Logistics building. The attorney referenced the lease agreements made by the City with the current car rental leasees regarding the number of agencies that would be allowed to operate in the terminal. Member Feferman questioned the definition of the word, "terminal". He also questioned what the difference between "terminal" and "premises" and its effect on this discussion. Staff described '°premises" as consisting of the terminal and parking lot and"terminal"to be the actual building used in operating the airport. Interim Chair Montesanto asked for questions from the Board and those present. Dawn Quiroz, representing Dollar Rent A Car, stated that her agency had expressed an interest in using the same building but was denied. This request was made during the construction phase of the new terminal. It was mentioned that during the bidding on leasing from the City by car rental agencies, Enterprise did not bid. Mr. Medrano did acknowledge that his agency had not bid to seek lease space within the terminal at that time. Since then his J, Airport Board Minutes August 11,2004 Page 4 of 6 agency has expressed an interest in locating their operations within the terminal. He informed the Board that he would be bidding for lease space during the next bidding process. This is a new move for his company as they are generally located off-site. In response to a comment regarding the current agencies concerns in the drop in their rentals if he is allowed to lease the building, he added that he has been doing business in his current location near the airport for about 8 years. He went on to explain all the services his agency offers customers from the utilization of a shuttle bus to transport customers to the Enterprise site to the phone located at the baggage area that calls the shuttle to pick up customers. At this point Interim Chair Montesanto asked that Mr. Medrano begin his PowerPoint presentation. Chris Crenshaw, with Enterprise, began the formal presentation and comments were heard directly after. A current car rental representative stated that in Laredo, where Enterprise has recently been located within the terminal, her particular rental agency has experienced a drop in rental sales. She also commented this scenario would be repeated here in Corpus Christi if Enterprise is allowed to operate closer to the old Air Logistics building, Ms. Crenshaw responded that Enterprise's rate structure would not be any different from what they have been using for the last 12 months and she did not foresee any change regarding rates or the manner in which they have been doing business. She added that they have positioned themselves as number one on the internet and they would continue to shuttle customers to their agency. Discussion followed. Member Feferman asked how they would advertise their location. Mr. Medrano responded that they would still advertise their agency as being off-site. Mr. Lyons questioned whether they would be changing their advertising from what they are using now. Ms. Crenshaw responded that their advertising would not change. Mr. Medrano stated that most arriving customers are drawn to those agencies located within the terminal because of convenience. Member Martinez felt that the intent for Enterprise was solely to generate more business. Attorney Hawn commented on the Powerpoint Presentation and it's content regarding satisfying customers and how that ties in to the profits Enterprise enjoys and how he felt that by doing this, those profits would be actually coming from the other rental car agencies loss of profits. He also felt that the existing rental car agencies within the terminal were not informed that this would be occurring during the bidding process. Questions were raised regarding whether off-site car rental agencies were required to pay concession fees on their rentals. Director Hamrick responded that they do but not on a percentage basis but rather per vehicle. Mrs. Keller added that they are charged $518 per month and that staff is looking to revising this and that this would probably change to a percentage basis. Board members held discussion regarding this topic and the validity of bringing it before the Board. Interim Chair Montesanto questioned what the next step for the Board to take on this topic. Director Hamrick stated that this topic was placed on the agenda because the Board requested that it be placed based on the concerns that were expressed at the last meeting. He also added that this topic would be placed on the next month's agenda so that absentee members of the Board could Airport Board Minutes August 11,2004 Page 5 of 6 be involved. Director Hamrick recommended that John Burke, Assistant City Attorney, research the legality of this matter and to bring his recommendation before the Board at the next meeting as an Action Item. Discussion was held by the Board members regarding their consideration of this matter as an Action Item. The Board requested the following from staff a copy of the entire lease; a timeline of the construction; which agencies were leasing at the old airport terminal; termination of the old leases; who vacated; who went off site; short- term leases; who was present at the bid meetings; who bid; and who was successful on the outcome. V. Director's Report(additional) Director Hamrick introduced Mario Tapia as the new Finance Manager. Mr. Tapia gave a brief background on his 19-years of experience working with the City of Corpus Christi lastly being the Assistant Director of Management&Budget. Director Hamrick also distributed the General Activity Report to the Board Members. He noted that this report was up overall by 1.94% from last month and up 8.5% from last year. Director Hamrick reported that he has written a letter to Congressman Ortiz requesting his assistance in getting the second checkpoint opened, especially during peak period. He also noted that up to 20 passengers are missing their flights due to delays at checkpoint. Director Hamrick referred to Mr. Frank Duncan, representing TSA, who was present at the meeting. Mr. Duncan responded the main reason for the second checkpoint not being operated was due to lack of equipment and staff. He expressed his desire to help but added that TSA was lacking in resources to fund opening the second checkpoint. Director Hamrick added that in the letter to Congressman Ortiz he stated that TSA's Operational Staff has decreased while our enplanements have increased. Director Hamrick felt the Congressman would be able to assist the airport in this matter. Director Hamrick reported to the Board that Chair Kane had wanted him to convey his apologies for not making this meeting as he had a personal emergency. Member Martinez moved to excuse Chair Kane for this meeting and Member Lyons and Member Meyers for missing the Master Plan Board meeting held at City Hall. Director Hamrick reported to the Board that he had been approached by Vacation Jet in starting a shuttle between Corpus Christi and Orlando, Florida, two to three times a week. They requested a local travel agent to assist them with this venture. Director Hamrick referred them to Member Ayala. Member Ayala reported to the Board that he spoke with Mr. Frank Krenshall with Vacation Jet regarding their services. After giving his advice regarding the market in Corpus Christi, Mr. Krenshall is looking into providing services from Corpus Christi to Las Vegas and has since also added Cancun, Mexico. He added that they would be flying 737s and use jets from an airline company called Pace Airlines. Member Ayala commented that he was very familiar with the airline and found them to be very reputable. He advised the Board that Mr. Krenshall would be Corpus Christi within the next three to four weeks. This would be a regularly scheduled charter service. He also added that this company is a charter company that uses the intemet for booking. Interim Chair Montesanto asked that they make a presentation to the Board on hll Airport Board Minules August 11.2004 Page 6 of 6 their visit to Corpus Christi. Member Ayala informed the Board they could get more information regarding this company by logging onto www.paceairlines.com. Member Lyons left the meeting at 4:42 p.m. No quorum was present. Director Hamrick reported to the Board that since the newspaper article highlighting the airport wanting to have a hotel on the property,he has received several inquires. Member Martinez asked for more information regarding the status of the Serntech building. Director Hamrick responded that Semtech has agreed to give the City$450,000 cash, demolish the facility and have a Phase 2 environmental study performed before turning over the property. He also stated that he has requested John Burke, Assistant City Attorney, to draft a termination agreement. He also asked Mr. Burke to leave a blank on the draft for a completion date of this project. Intermin Chair Montesanto added to those members that did not attend the Master Plan Board meeting at City Hall, Members are needed top iciate in the 5-year Master Plan Planning Committee. No action was taken on excused absences as a quorum was not present. Director Hamrick gave the Board an update on the status of air service to Mexico with Aerolitoral. He reported that on June 22, Mrs. Keller,Joe Cisneros and Robert Vela with the Corpus Christi Hispanic Chamber of Commerce and himself went to Monterrey, Mexico for a meeting with Aerolitoral staff. Director Hamrick felt that this meeting went well. They have requested information which staff has provided and he is now waiting on a reply on their decision. He believes that they are acquiring additional aircraft in October and he anticipates that they may make their decision at that time. I. Adjournment As there was no further business to discuss, Interim Chair Montesanto adjourned the meeting at 4:55 p.m.