Loading...
HomeMy WebLinkAboutMinutes Airport Board - 11/10/2004 t � Minutes CORPUS C H RISTI P Air ort Board Meeting INTERNATIONAL November 10,2004 AIRPORT N' v Board Members it, /Air ryort 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 Celina Y. Pulcer, 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 In the absence of both the Chair and Vice-chair, Board member Lyon called the Corpus Christi International Airport Board meeting to order at 3:39 p.m. 1. Approval of minutes for the Airport Board meeting held September 8,2004. Board member Martinez moved to approve the minutes for the Corpus Christi International Board meeting held on September 8, 2004. Board member Montesano seconded and the motion carried. II. Director's Report A. Update on: 1. Food & Beverage Service Director Hamrick informed the Board of the status of the current restaurant services. He stated CCIA staff has met with City Attorneys and have managed to secure temporary restaurant and alcohol services. The temporary agreements were obtained from Whataburger and Nobel Food Services, The agreements with both these groups are for 60 days with an option to extend in 30-day increments up to a maximum of one year. Discussion was heard regarding the staffing of the area. Director Hamrick gave the Board an update on how the area is being staffed. Director Hamrick announced to the Board that Assistant Director Debra Keller has put together an RFP for food and beverage service at the airport which was Airport Board Minutes November 10,2004 Page 2 of 8 issued last week. He asked that Mrs. Keller give the Board an update on the status of the RFP. On behalf of the newer Board member,Mrs. Keller gave a brief history of the food and beverage service concession at the airport. She continued by stating that an RFP has been issued and several groups have shown an interest in bidding for this location. She has also scheduled a pre-proposal meeting in order that those interested parties could look-over the premises and equipment. Several options have been presented in the RFP including offering service to include a restaurant, alcohol service and quick foods all in one exclusive contract. Director Hamrick stated that two businesses were being used for this temporary arrangement due to Whataburger not wanting to be involved in providing alcohol. Nobel Foods is providing alcoholic beverages at present. Mrs. Keller stated some of the reasons the RFP was set up for only one concessionaire was because there is only one kitchen with the utilities on a master meter. She also added that based on feedback from those who have expressed an interest in this RFP, it is not cost effective to split dollars with two overhead expenses. For this matter, one contract is being solicited for the entire food and beverage concession. Mrs. Keller also stated that the RFP give the potential concessionaire several options in location of where the pre- and post-checkpoint restaurant site would work best. At this time, the restaurant is post-checkpoint. It can very easily be converted to a pre-checkpoint restaurant. She stated that the RFP allows the potential concessionaire to make the decision where the larger restaurant would be best located. The only stipulation is they are required to have restaurant service, quick food service and alcohol service both pre- and post-checkpoint. Also stated on the RFP is the manner in which any design changes are to be financed and whether or not the potential concessionaire would be requesting assistance from the City. Mrs. Keller anticipates making a presentation to the Board at the December meeting and to take to City Council by December 2151 with awarding to be by January l5`. Board member Lyons questioned whether this excluded Whataburger from bidding. Mrs. Keller responded that it does not. She also added that Whataburger was sent an RFP. She also commented that they had previously looked into possibly bidding on the concession contract including the alcohol provisions. They declined to participate in the RFP. Mrs. Keller stated that RFP was sent as a courtesy. Discussion by the Board was held. Mrs. Keller commented she expected to get a variety of responses from this RFP. She also added that staff recommendations would be on next month's agenda. Airport Board Minutes November 10,204 Page 3 of 2. Airport Art Mrs. Keller reported to the Board that the artwork by Shen Shen Shang was up and complete. She added that there have been mixed reviews by the public. She also added that the artist had gone to great lengths to insure the piece would be durable and safe. Mrs.Keller advised the Board that an official unveiling would be in December. She added that a plaque and accent.lighting would be added to the piece. Staff will be working closely with the artist on the lighting the piece. Director Hamrick reported that the Broeliade artwork's installation is still underway. He added that he expected the installation to be completed and the piece operational by the December meeting. 3. Terminal Roof Director Hamrick distributed copies of meeting minutes from a meeting with the manufacturer and CCIA staff regarding the mold on the roof. CCIA staff contends that the fungicide that was applied to the roof in the initial run was either non-existent or inadequate. He added that the airport is demanding two points on the behalf of the City: 1.)A quick-fix cleaning to remedy the problem; and 2.) A long-term fix. The response from the manufacturer was that should this occur within four years it would loop good. Director Hamrick stated that this was not acceptable. Director Hamrick reported that samples of the roof were sent to the lab and the results of the test samples showed mold present. Additional samples were sent to the lab and requested that the underside be tested in order to see if mold was present indicating that mold had gone through the roofing material. Those results showed that the mold had not gone through the roofing materials and is just on the outermost layer. Director Hamrick reported that at the meeting it was stated by CCIA staff that unless the manufacturer provides the airport with a suitable remedy to this situation,the next meeting would be our attorneys. He added that the manufacturer had been very cooperative thus far. He reported to the Board that the manufacturer had sent a representative to take additional samples which were sent to Switzerland where their home office is located. He is hopeful to expect them to cooperate. Director Hamrick expects a resolution soon and will be reporting back to the Board upon hearing the manufacturer's response. Discussion was held by the Board regarding this topic. Airport Board Alinules November 10,2004 Page 4 of 8 4. Passenger and Parking Director Hamrick distributed copies of the General Activity Report (GAR) to the Board members. He added he would also be distributing copies of the Parking Lot Revenue Report. He reported that the amount of revenue for October, 2004, was$157,000 which brings revenues up to within$1,000 of pre-9/11 revenues. Director Hanuick pointed out on the GAR that the number of enplanements for October was still maintaining an upward climb of 4.6%for a year-to-date increase of 8.1%. Board member Lyons asked what the status was on the Mexico Air Service. Director Hamrick reported that as of last week,he had communicated with Aerolitoral. Their representative advised him that CCIA is still under consideration and they felt sure that something would be worked out and come to some type of agreement. Director Hamrick added that this is the time of year when they are acquiring their new regional jets in to replace their turbo-props. This would cause excess aircraft which would facilitate this proposed venture. He added he was cautiously optimistic. Director Hamrick reported on the Las Vegas Air Service and his dealings with Pace Airlines. He stated that with the help of Board member Ayala, CCIA advised Pace what the airport could provide. He added that Pace was excited about the prospect of doing business with the airport. Director Hamrick turned over this discussion to Board member Ayala regarding who has been working closely with Pace. Board member Ayala reported on Phase II of this project. He reported that Pace is looking for revenue guarantee. Once CCIA can provide this item, the airport would be included in Phase H which should begin in June or July 2005. Pace is looking to provide service to Monterey and Cancun, Mexico along with Las Vegas. 5. Proposed Airport Industrial Park Director Hamrick distributed copies of an engineering estimate on the cost of constructing an industrial park at the airport. The area Director Hamrick proposes for this project is behind where Serntech is located. He added that he has been working with Corpus Christi Regional Economic Development Corporation (CC DC) who had Cotton-Landreth draw up a conceptual site plan on the proposed Industrial Park development. He reported that Phase I of this project would consists of a 160,000 square foot facility. The CC reports inquiries of four to five businesses a month being turned away due to lack of sufficient industrial type facilities available for lease. Director Hamrick reported that CC DC has offered to partially fund the cost for this type of facility. He added that CC has already done background research on this type of project. The estimate shows a breakdown on a cost of$685,000 to the airport. Airport Board Minutes November 10,2004 Page 5 of& Director Hamrick commented that this was a very good opportunity for the development of airport property. He also added that CC feels confident that once the industrial facilities are built, there will be no problem working with them in leasing the facility. 6. Proposed Agreement with Corpus Christi Regional Economic Development Corporation Director Hamrick reported on discussion he had with City Manager Noe over a year ago regarding the development of this type of project. With that in mind, airport curb and gutter was eliminated in order to save money on the Roadway Phase 11, out of the Series B bonds, These funds will be appropriated to fund the airports portion of the proposed industrial development. Storm Water and Utilities have budgeted funds to allow for this development as well. Director Hamrick continued by reporting on discussions with Ron Kitchens and John Plotnik of the CC DC regarding this issue. Upon further discussion with with City Manager Noe, it was decided to negotiate with the CC DC for business development services. Director Hamrick is in the process of taking this project to the next level. He anticipated presenting a proposal to the Board at this meeting, but as it was not completed, this was not possible. Director Hamrick reported to the Board that initially 4A monies were to be used for this project unless a private developer could be found. Board member Lyons expressed an interest and met with Director Hamrick and Mr. Kitchens regarding this issue. Director Hamrick felt that Mr. Kitchens would prefer to continue this project using 4A monies instead of a private developer. Board member Lyons explained that it would be beneficial for new tenants of the proposed industrial park as CC DC could entice prospective businesses with minimum or no rent for a period of time while a private developer would require a more lucrative arrangement. Discussion was held by the Board on a related matter. Board member Feferman questioned whether the proposed area off of Greenwood Drive and Saratoga would be competing for those businesses that could be interested in the airport business park. Board member Lyons felt that the Greenwood Drive development would not have any effect on the airport business park development. Director Hamrick added that he has met with Pat Perot who had never been to CCIA but would keep the airport in mind for any future expansion he may endeavor. Board member Lyons stated that if the infi-astructure could be put in place, it would make is much easier to move ahead quickly for the business park development. 7. Construction Update Director Hamrick presented photos to the Board of the signage on the covered parking canopy. The owner of Sun Port Intemational would be coming to CCIA in order to rectify the problem with the lettering on the canopy, Board member Hammonds questioned the durability of the fabric used on the canopy. Director Airporl Board Minures November!0.2004 Page 6 of 8 Hamrick responded that there is an 8-year warranty on the fabric and 20-year warranty on the remaining covered parking structure. Board Member Hammonds felt it was very attractive but held reservations on how the fabric would hold tip to the elements. Board member Lyons suggested that it would be in the best interest of the airport to inspect the structure after 4 years. Director Hamrick reported that all construction is almost complete. Construction at this point is in the final phases. He added that US Customs is in the process of moving in to their facility downstairs. CC IA is waiting on one minor change order from Beecroft for time and material for additional storage space for TA. He felt that it would be no more than$1,500 or$1,600. The cost also includes lighting and fire sprinkler installation. Once this work is completed, that project will be finished. Director Hamrick reported that Bay has submitted their request for their retainage on the entire roadway project. He added that a few issues needed to be worked out, but the retainage would be released. Director Hamrick reported to the Board that Fulton has also requested the release of their retainage which, outside of the warranty,completes the project. He added that there are a few deliverables that still need to be provided by Bay, some of which are employee training on the different installed systems. Beyond those issues, the project is basically done. Director Hamrick stated that the one change order that the Board is aware of and that CC IA is working on is about$106,000 to reconstruct the west end parking lot next to the terminal that was damaged during construction, The FAA has agreed to fund and CCIA staff is working on getting a contractor for this project. Director Hamrick reported to the Board about the Master Plan. He stated that CC IA should have a draft of the first three chapters next week. Discussion was held by the Board on this topic. Board member Lyons commented on the issue of payment of retainage. He felt that CCIA should be extremely sure that all work is complete because once retainage is paid it is difficult to get the remaining work completed. Board member Hammonds asked if Director Hamrick was aware of the overages an changes orders. Director Hamrick responded the percentage of changes orders is 24% on the terminal. Board member Meyer would like to see what the original cost for construction and the final cost for construction. He also asked to know how the construction was funded. Board member Meyer questioned if there was a master list of the warranties and a system in place to keep track of the expiration which could be monitored by Operations &Maintenance CC IA staff Director Hamrick responded that the Facilities Section of CC IA has all this information and they are keeping track of all warranties which expire. Airport Board Minutes November 10,2004 Page 7 of 8 B. Discussion on the TSA"Opt-Out"program Director Hamrick reported to the Board that when the Transportation Security Act was passed, Congress instructed TSA to use private screening companies at five airports. After some time, TSA was to compare the private screening companies with TSA's performance. At some future date, Congress would allow commercial airport to request to "opt-out" from using TSA employees at the check point. The period to apply for that option starts on November 19, 2004. It is a very short application time frame and that is the reason why it is being brought to the Board for discussion. Director Hamrick feels that even though what is in place at present is not the best system with TSA, but there is the value of having the same employees in place from day to day which was not the case before TSA was placed at the check point. He feels that this is what would transpire should a private screening company be used. He added that TSA is a regulatory agency and they also are able to impose civil penalties on those they regulate. He commented that CCIA has a very good rapport with TSA. At this time, Director Hamrick feels that TSA and CCIA's joint objective is to make this the safest airport as possible. He added that TSA does self checks of the check point equipment and staff. As it stands now, they handle any problems with either staff Or equipment. Should a private screening company be put in place, CCIA would become responsible for taking care of these types of issues. In addition, there would be no cost-savings to the airport or the airlines because the charges would be the same. Director Hamrick fell that CCIA would also be burdened with the liability should security be breached using a private screening company. Discussion was held by the Board regarding related issues with TSA. Board member Montesano discussed the benefit of having TSA operate the check point versus a private security company. Discussion was heard regarding the pay standards of TSA versus a private security company. Board member Meyer questioned if a private security company was to be used, would CCIA be responsible for the testing and results from testing of security check points. He questioned whether CCIA would be accountable for the standards needed to man the check point. Director Hamrick agreed that more responsibility would be placed on CCIA staff. He added that the options open to the airport would be leave the process as is; solicit a private screening companies to take the contract; and create an airport screen force. He also added that the most responsibility would be incurred if the airport created it's own staff, while with a private security company there would somewhat less responsibility; and, ultimately, the least responsibility would be if TSA continued to operate the check point. Board member Hammonds felt that it was hard to see a benefit in changing at this point. Director Hamrick mentioned that one of his concerns, which was just answered today, is regarding the lease agreement with TSA for the next few years which will generate$2.1 million in revenues. The response to his concern was that as long as that lease was in effect, they will continue to pay for the office space they are leasing. Discussion concluded with the concensus being to keep TSA. Director Hamrick presented this topic to the Board to make them aware of what is occurring at the airport. Airport Board Minutes ftvember 10,2004 Page 8 of 8 III. Board Business and Reports Director Hamrick distributed copies of the proposed Capital Improvements Plan. He added that he would like to put this on the agenda for the next meeting for the Board's approval. Board member Montesano moved to excuse those members absent, Chair Kane, Vice- Chair Hicks,Board member Hammonds. Board member Meyers seconded and the motion carried. Board member Montesano moved to adjourn the meeting with Mark Meyer seconded. The motion carried and meeting adjourned at 4:40 p.m.