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HomeMy WebLinkAboutMinutes Airport Board - 04/06/2005 r ILI b� Minutes CORPUSCHRISTI Airport Board Meeting INTERNATIONAL April b,2005 AIRPORT /Y Board Members City�ort Staff ®Ed Hicks, Sr.,Vice-Chairman ®Dave Hamrick,Director ® Mark.Meyer,Member ❑ Debra Keller,Assistant Director ❑Nelda Martinez,Member ❑Roy Rodriguez,Facilities Manager ®Frank"Rocco"Montesano,Member ❑Celina Y. Pulcher,Management Assistant ®Glenn E. Lyons,Member ® Adelle Ives,Management Assistant ®J.C.Ayala, Member ® Wayne Bennett,Member ®Don Feferman,Member ® Sylvia Whitmore,Member ® WilIiam Dodge,III,Member I. Call to Order. The Corpus Christi Airport Board meeting was called to order at 3:30 p.m.by Vice Chair Ed Hicks. A quorum was present. II. Approval of minutes for the Airport Board meeting held January 12,2005, Vice Chair Nicks called for a motion to approve the minutes of the meeting held on January 12,2005. Board Member Bennett moved to approve the minutes of the January meeting. Board Member Feferman seconded and the motion carried. At this point in the meeting, Vice Chair Hicks requested to change the order of business and skip to Item V in order to allow the election of new officers for the Airport Board. V. Board Business and Reports a. Election of new Airport Board Officers Vice Chair Hicks began by welcoming the newly appointed Board Members, Sylvia Whitmore and William Dodge. Vice Chair Hicks requested the new Board Members give a short background report to the Board. Ms. Whitmore began by introducing herself and informing the Board that she was affiliated with Frost Bank. She also reported that she has been a resident of Corpus Christi for almost 30 years. She also stated that she was delighted to be a member of the Airport Board. Mr.Dodge began by informing the Board that he moved to Corpus Christ in 1982 and is originally from New York state. He added that he works at an insurance brokerage and investment brokerage. r Airport Board Minutes April 6.2005 Page l of 10 Rocco Montesano arrived at 3:34 p.m. Vice Chair Hicks recognized the two out-going Board Members,Jerry Kane and Willard Hammonds for their service to the Airport Board. Vice Chair Hicks called for nominations for Chairman of the Airport Board. Board Member Lyons nominated Ed Hicks for Chairman. Mark Meyer seconded the nomination. Vice Chair Hicks called for further nominations. As there were no further nominations,Vice Chair Hicks called for a vote. The vote was unanimous. Ed Hicks was elected Chairman of the Airport Board. Chair Hicks called for nominations for Vice-Chairman of the Airport Board. Board Member Montesano nominated Mark Meyer as Vice Chairman of the Airport Board. Wayne Bennett seconded the nomination. Chair Hicks called for further nominations. As there were no further nominations, Chair Hicks called for a vote. The vote was unanimous. Mark Meyer was elected Vice Chairman of the Airport Board. At this point, Chair Hicks returned to the agenda's order of business. III. Action Items: a. Motion recommending Council approve a Resolution accepting and appropriating U.S. Department of Transportation, Federal Aviation Administration Grant #37, in the amount of $7,788,088.00 for the rehabilitation of Runway 13131 and associated projects. Chair Hicks called for a motion on this item. Board member Fefcrman moved to approve the motion recommending Council approve a Resolution accepting and appropriating U.S. Department of Transportation, Federal Aviation Administration Grant#37,in the amount of$7,788,088.00 for the rehabilitation of Runway 13/31 and associated projects. Board member Montesano seconded the motion. Discussion followed. Board member Lyons questioned if this funding was for existing runway work. Director Hamrick responded that this motion was for existing runways. He also went on to explain the scope of this project for the benefit of the new Board member. He added that this project would involve the contractor working at night in order not to disrupt the usual flow of air traffic. Chair Hicks inquired on the timeline involved in this project. Director Hamrick responded that work on this project is estimated at six and one half months. He added that he anticipates having the runway opened by the Thanksgiving holidays. During this project, air traffic will be routed to Runway 35-17. He is working very closely with the contractor in order to minimize any disruption of scheduled flights. He added that since Runway 35-17 will be utilized during the construction of Runway 13-31, the airlines have made changes in the type of aircraft utilized. Board member Montesano questioned the total amount of the project. Director Hamrick stated that it would total$8,963,579 at this time. Airport Board Minutes April 6,2605 Page 5 of 10 Chair Hicks call for the question and the motion carried. b. Motion recommending the Director of Aviation, or designee, enter into a Memorandum of Agreement (MOA) with the Federal Aviation Administration (FAA) to provide funding estimated at $15,000 for FAA Phase I services associated with the Runway 13 Localizer Relocation Project. Chair Hicks called for a motion. Board member Feferman moved to approve the motion recommending the Director of Aviation, or designee, enter into a Memorandum of Agreement (MOA) with the Federal Aviation Administration (FAA) to provide funding estimated at $15,000 for FAA Phase I services associated with the Runway 13 Localizer Relocation Project. Board member Bennett seconded. Chair Hicks called for discussion. As there was no discussion, Chair Hicks called for the question and the motion carried. c. Motion recommending Council authorize the City Manager, or designee, to execute a construction agreement with Berry Contractors, LP, dba Bay, Ltd. of Corpus Christi in the amount of $8,963,579.50 for the CCIA Runway 13131 Rehabilitation, Overlay,Blast Pads&Shoulders,Airfield Drainage Improvements (Phase 3), Runway 13131 Lighting and Cable Replacement-Project No. 10921109311080. Chair Hicks called for discussion. As there was no discussion the motion was put to a vote. The vote was unanimous to approve the motion. IV. Director's Report a. Parking Revenue Report Director Hamrick reported that airport enplanements have been steadily climbing for the last calendar year and continue into this calendar year and therefore an increase in the parking revenues is indicated. He added that for the month of March,the parking lot generated$156,747 in revenue compared to 5138,911 for 2004 and$123,931 for 2003. Director Hamrick also stated that the majority of the increased revenue came from the covered parking area. Chair Hicks requested more information on the pricing and cost of the short-term and long-term covered. Director Hamrick responded he would have that information for Chair Hicks at the next meeting. b. Financial Report Director Hamrick reported that revenues are in line with the projected budget. He expects the revenues to exceed expenditures by several hundred thousand dollars. Vice-chair Meyer questioned what the long-term plan to offset oil and gas income. Director Hamrick stated that the airport is attempting to diversify by working with the CVB and John Plotnik to increase the non-airline revenue. He acknowledged the fact that the mineral pockets would eventually decrease. EOG, ,a 4irpor!Board Minutes April 6,ZOOS Page 4 of 10 whom the airport Ieases mineral rights to,projects that within two years,the pockets will begin to decrease. He added that EOG gave a very conservative projection. Director Hamrick reported that what revenues were projected by EOG have not been accurate. The revenues,the royalties, have exceeded their projections. c. Project Funding Report Director Hamrick reported there were no changes from January,2005. d. General Activity Report(GAR) Director Hamrick reported an increase of 3.5%from February, 2004 to February, 2005. He added his concern on the load factor on Southwest and Delta. He felt that these were very low load factors. Chair Hicks questioned whether changing flights would assist ASA with their load factors. Director Hamrick stated he has contacted ASA's office who also voiced their concern regarding the Ioad factors here in Corpus Christi. Ho is currently discussing with them to begin flying to Monterrey,Mexico through Corpus Christi. He stated they were interested taking this into consideration. Chair Hicks questioned whether the airport new Customs facility would be able to accommodate international flights. Director Hamrick responded the Customs facility is complete and operational. He added that he has been in contact with Mr. Juan Cardenas of Customs and Border Protection who has informed him that his staff will be moving to the airport. Chair Hicks questioned whether Customs would be available for general aviation. Director Hamrick stated,at present, Customs can and does provide service to general aviation flights. Board member Lyons questioned how in-bound international flights would be handfed. Director Hamrick gave a brief description on the present layout of the Customs facility. Chair Hicks asked Board members if they would agreeable to meet at 3 p.m.before next month's meeting in order to take a tour of the Customs facilities. The consensus of the Board indicated they agreed to meet at 3 p.m. in May in order to tour the Customs facility. Board member Whitmore questioned Southwest's numbers. Director Hamrick reported that Southwest's numbers have been in the mid-50's over the last few months. He indicated that Southwest would like to have their numbers into the 70's range. He added that in his dealings with Southwest the topic of lowering rates is often brought up. He stated he has met with Southwest corporate reps,the City Manager and the airport's Station Manager regarding this matter. He was reassured that Southwest is here to stay. DirectorHamrick added that Southwest has been in the city for 25 years;but,they did request a reduction of rates and charges. y F Airport Board Minutw April 6.2005 Page S of 10 Board member Meyer added that in the past when meeting with Southwest,they were brutally frank with respect to load factors;and, at this point in time, if Corpus Christi had to bid for Southwest to come in,the city would not meet the minimum criteria. Director Hamrick added that Southwest does not enter market with less than 13 flights per day. Board member Montesano questioned how many flights the Southwest flies from Corpus Christi at this time. Director Hamrick stated that Southwest flies six flights per weekday and four on weekends. Board member Meyer stated that as this airport is an original stations, Southwest has a great loyalty to keeping it running,but they are very upfront in that the airport needs to all it can to generate business. With that in mind, Chair Hicks requested an update on what measures were being taken to promote the"Fly Corpus Christi"campaign. Director Hamrick responded that Ron Kitchens with the Corpus Christi Regional Economic Development Corp.,has done several television commercials at the airport to promote the community to fly out of Corpus Christi rather than driving to an out of town airport. He added the commercials are all he has seen to promote the "Fly Corpus Christi"campaign. Chair Hicks gave the new Board members background information on the intent of enlisting the CCREDC services. He added the purpose was to be able to compare the rates at the airport versus driving to San Antonio for a flight, especially with the pace of gas. Director Hamrick added that as a Board member for the Convention Visitors Bureau,he is aware that the CVB has also dedicated a large part of their advertising budget to the driving market. He also stated that at the last CVB meeting,he garnered support for billboards in Atlanta and other markets. He felt that advertising in San Antonio for the past several years has generated new business,but he also feels that other new markets need to be developed. Director Hamrick also informed the Board that the airport is limited in advertising within the community. Board member Ayala asked about the television commercial developed by CCREDC. Director Hamrick redirected the question to John Plotnik with the CCREDC. Mr.Plotnik responded that the commercial is ninning twice a week on Channel 6. He also added that in addition to the commercial,in October,2005, Corpus Christi will be hosting the International Asset Managers Conference. He informed the Board that an additional commercial had been produced specifically for this group. This commercial will be sent in DVD form to Facilities Managers who are members of the UM that will be attending the conference. Chair Hicks inquired whether the local travel agents had been contacted. Director Hamrick stated that they had not been contacted. Board member Ayala was concerned because the commercial did not prompt the public to contact a local travel agent and because he is aware that San Antonio travel agents are advertising travel packages in Corpus Christi that fly out of San Antonio. Chair Hicks was stated that a Committee would be formed with Board members in order to focus on this issue. . •1 Airport Board Minutes Apri[6,2005 Page 6 of 10 Board member Feferman questioned on why the numbers were down on mail going through the airport. Director Hamrick responded that the mail is being driven to San Antonio which could be attributed to the fact that the only commercial carrier is Southwest who uses RJ's which have been known to have very poor performance. Chair Hicks added there is an overall decline of 18% in mail service. e. Maverick Engineering(M.E.I.) Agreement Director Hamrick stated that this item had already been taken to Council without a Board recommendation because there was no meeting in March. This item was sent via email to all Board members and as there were no negative comments regarding this topic,Director Hamrick proceeded in presenting the item to Council. He went on to explain the item. Chair Hicks called for a motion to ratify the item. Board member Feferman moved to ratify the Agreement with Maverick Engineering. Board member Lyons seconded and the motion carried. Vice-chair Meyer asked for the funding source for this item. Director Hamrick responded the funding was to come from Series B 200 bonds. These funds were monies saved from the roadway project. Chair Hicks called for the question and the motion carried. f. Corpus Christi Regional Economic Development Corporation(CCREDC) Quarterly Report Director Hamrick stated brief background information regarding the services provided by the CCREDC for the benefit of the new Board members. He went on to introduce Mr. John Plotnik,Executive Vice-President of the Corpus Christi Regional Economic Development Corporation to the Board. W.Plotnik began by presenting his resume to the Board. He reported that he had been directed to market the airport for non-airline business. He also submitted to the Board the quarterly report as required by the contract of services. He added that, to date, CCREDC has begun the process of planning an Industrial Park at the airport; marketing target industries for a mass-mail-out; signage for the space available at the airport for lease; a banner to be put on the old Air Log building noting its availability for lease. He went on to give a brief overview of the report given to the Board members. He also presented the Board with the new brochure showcasing a conceptual drawing of the proposed Industrial Park. He also reported that he has had several out-of-town developers come to Corpus Christi. He is hopeful that these measures will be successful. Chair Hicks called for discussion. Board member Lyons asked Mr.Plotnik where the developers were from. Mr.Plotnik responded two were from McAllen and others from Dallas,Houston and Chicago. Board member Lyons also asked if these developers were experienced in airport industrial park development. Mr. w Airport Board Minutes April 6.1005 Page 7 of l0 Plotna responded that all were experienced in industrial park development and two have built at an airport. Chair Hicks expressed that he was impressed with the presentation and the brochure. He also congratulated Mr. Plotnik on having the distinction of being the only person in the nation to hold both certifications as an active member of the Society of Industrial and Office Realtors(SIOR)and the Certified Economic Developer(` DcD). Mr.Plotnik expressed his pleasure in working with Director Hamrick and his staff as they have been responsive to his needs. Chair Hicks expressed the Board's thanks to Mr.Plotnik for his presentation. V. Board Business and Reports a. Election of new Airport Board Officers This business was conducted out of order at the beginning of the meeting. b. Discussion and Recommendations regarding City of Corpus Christi's position regarding the Wright Amendment. Chair Hicks opened discussion of this item by informing the new Board members of a meeting with the former Mayor Neal, former Chair Jerry Kane,Director Hamrick,the City Manager,representatives of American Airlines/American Eagle and himself regarding this item. He added that based on the outcome of that meeting,the Board will not be making an official recommendation for or against the Wright Amendment. This is due to a conflict between airlines,Southwest and American Airlines. Chair Hicks stated it would not be in the Board's best interest to become involved with the two airlines that have conflicting views regarding this item. He added that at the meeting,he suggested a compromise. He stated that the Wright Amendment prohibits Southwest from flying other than four states from Love Field. The compromise he suggested was to give them 10-12 states and not open it up to world travel. In that way, Southwest could fly other than the four states out of Love Field. He added that he has studied this amendment and would like input from the other Board members. He asked that Board members contact him either by phone or email with their comments. Chair Hicks recommended that the Board take a middle-of-the-road position. He asked that Director Hamrick confirm his statement. Director Hamrick agreed with Chair Hick's statement regarding the Wright Amendment.Director Hamrick added that Mayor Neal commented that he felt that Corpus Christi prefers things the way they are. Board member Montesano asked if American was asking for an endorsement from the Mayor. Chair Hicks stated that they were seeking the support against the repeal of the Wright Amendment.Board member Whitmore questioned whether Southwest had sought the Board's support. Director Hamrick responded that they have not approached the airport, although he knew that former Chair Kane had been approached by Southwest P Airport Board Minutes " April 6,200.E Page B of 10 c. Discussion on the formation of Airport Board Committees. Chair Hicks began discussion of the item by stating that he would like to work with Airport staff and try to form two or three separate Board Committees. He would like to have one Committee to work with Economic Development. He is seeking support of the other Board members in creating these Committees. Chair Hicks commented to the Board that he had requested Mr.Jerry Kane to remain as an unofficial advisor to the Airport Board. He added that Mayor Neal had approved this matter. Mr.Kane's position would strictly unofficial and no voting privileges would be included in this appointment. Chair Hicks added that Mr.Kane would be invaluable in transitioning Airport Board leadership in dealing with the airlines on a corporate level. Chair Hicks requested the Board members support on this item and asked for any objections. The consensus of the Board members was to agree with Chair Hicks regarding having Mr.Kane appointed as an official advisor to the Airport Board. On a related matter,Chair Hicks requested Director Hamrick to have his staff assist in coordinating a dinner in honor of former Board member Willard Hammonds and former Chair Jerry Kane. He advised Director Hannrick that he would be hosting this event. This event will be for former and current Board members to attend. d. Discussion on the development of Airport Board By-laws. Director Hamrick advised the Board he felt this item was necessary to develop more airport related by-laws in addition to what is covered by the City. Chair Hicks concurred with Director Hamrick's comments and asked for the Board's input. Board member Lyons questioned whether this Board could be an independent Board apart from the City. Chair Hicks stated that this has been an issue since he has been seated on this Board. Director Hamrick stated that the issue of the Airport Board becoming an authority had been taken into consideration in the past. He added that attempts in accomplishing this have been unsuccessful. Discussion regarding these issues was heard amongst the Board members. Chair Hicks closed this discussion by stating that he would be working at the next meeting to form committees. e. Board Member Absences Chair Hicks called for a motion on Board member Martinez' absence. Board member Bennett moved to excuse Board member Martinez' absence. Board member Lyons seconded and the motion carried. General Comments: we �' airport Board Minutes apni 6,1005 Page 9 of 10 Board member Bennett asked if there was an orientation held for new City Council members for the Airport. Director Hamrick responded that Mayor Garrett will be holding Council and Department Head retreat. Board member Feferman wanted to comment that in all his travels,he feels that the Corpus Christi Airport is an incredible airport. Chair Hicks agreed by commenting on a recent travel to another airport and his dilemma in trying to get a cup of coffee. He also commented that on a recent trip through the airport,his wife was trying to unload her luggage and there were no skycaps available. He did add that a staff member named David assisted her,but he felt that they should be made available throughout the day. Director Hamrick stated that the skycaps are staffed strictly on a volunteer basis and there are efforts to recruit additional volunteers. Board member Lyons commented that he would like to see the meetings held in a more consistent manner. Chair Hicks assured him that the meeting schedule would be tightened up. Board member Montesano requested more information on the company who contacted the airport to act as an airline advocate. Director Hamrick could not recall the name of the company,but he did recall that their services would cost approximately$75,000. He also mentioned that this item was brought before the Board for consideration but not as an action item. Director Hamrick wanted to clarify to the Board what is being done about advertising marketing. He presented to the Board a copy of the article printed in The Business Journal which printed an extensive article on the airport in February. He also added there have been several articles in the newspaper. Director Hamrick reported that the negotiations with Aeromar are still ongoing and he would be meeting with them soon and hoped an agreement could be reached soon. Director Hamrick also wanted to respond to Board member Ayala's comment regarding advertisements to fly out of San Antonio. He informed the Board that those advertisements are sponsored by the travel agents and not the San Antonio Airport. Director Hamrick also wanted to comment on the remark regarding action items going before Council without Board recommendation. He felt it was necessary as there had not been a Board meeting since January and did not want to delay the project. He added that the Board was aware of the matter. Chair Hicks responded that the Board would like to make the decisions regarding these types of matters. Board member Lyons asked that a weekly activity report be emailed to the Board members to keep them up to date with Airport activity. wV Airport Board Minutes April 6.2005 Page 10 of 10 Chair Hicks requested that Director give a brief overview of the security issues the Chili's restaurant faced with respect with service to be provided pre- and post- check point. Director Hamrick informed the Board that those issues have been taken care of at this point. He added there are several other issues that need to be addressed. A meeting was conducted with the restaurant manager to discuss the issue of staffing, food selection and pricing. They are working to resolve these issues. He also informed the Board that the post-checkpoint operation is still in a temporary cart. Game Time had agreed to build out the area by the gift shop for a full service restaurant. The target date for opening that restaurant is June 1. Director Hamrick also added that he did not feel that the deadline would be met. Board member Feferman questioned if stag'was satisfied with their efforts. Director Hamrick responded that it was a tremendous difference from the previous restaurant. He added that this company did not have the overhead of the franchise and they have been very receptive to any suggestions staff recommends. Board member Lyons stated that he had made a comment to the restaurant manager suggesting that a few tables to be handicap accessible for those in wheelchairs be provided. The manager stated he would look into getting those tables. Chair Hicks asked if alcohol was provided post-checkpoint. Director Hamrick stated that alcohol beverages are available post-check point. Chair Hicks commented that at the grand opening for the restaurant he met the president of the company. He added that they would like to be an active member within the community and will be catering a dinner for 50 people which will be auction off next week to benefit Metro Ministries. Chair Hicks called for further comments. There was no further discussion. VI. Adjournment As there was no further business,Board Member Montesano moved to adjourn. Board Member Lyons seconded and the motion carried. The meeting adjourned at 4:50 p.m.