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HomeMy WebLinkAboutMinutes Airport Board - 05/11/2005 e 0,,13456 Minutes Airport Board Meeting CORPpSCHRISTI May 11,2005 INTERNATIONAL AIRPORT Board Members City/Airport Staff ® Ed Hicks, Sr., Chairman ® Dave Hamrick,Director ® Mark Meyer,Vice-Chairman ®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 ® William Dodge, III,Member 1. Call to Order. The Corpus Christi Airport Board meeting was called to order 3:34 p.m.by Chair Ed Hicks. A quorum was not present. Mark Meyer arrived at 3:50 p.m. A quorum was now present. H. Approval of minutes for the Airport Board meeting held April 6,2005. Chair Hicks called for the approval of the minutes for the April 6d Airport Board meeting. Chair Hicks requested the minutes be amended on Page 6,first paragraph, fourth line,, to read"not use RJ's..." Chair Hicks also requested that the minutes be amended on Page 8, second paragraph, the last line to read"as strictly unofficial advisor..." Chair Hicks called for a motion. Board member Dodge moved to approve the meeting minutes of the Airport Board meeting held on April 6,2045,as amended. Board member Montesano seconded and the motion carried. III. Action Items a. Motion recommending an Ordinance authorizing the City Manager,or designee, to execute a Long-Term Lease Agreement with San Antonio,MTA, L.P.d/b/a Verizon Wireless for land to provide communication services at the Corpus Christi International Airport in consideration of payment of an annual rental fee paid in advance for a term of five years with three Airport Board Minutes May 11,2005 Page 2 of 7 successive five-year options to renew; and providing for publication. Chair Hicks called for a motion Vice-Chair Meyer moved to recommend the motion. Board member Montesano seconded. Chair Hicks called for discussion on this motion. Board member Lyons asked to ensure that upon renewal of the lease,the price per foot would reflect standard rates for that point in time. Director Hamrick assured the Board an exit clause has been written into the Iease agreement to prevent such an issue. Chair Hicks called for a vote and the motion passed. b. Motion recommending to Council that Mr.Jerry Kane,former Airport Board Chairman,be appointed as a Special Advisor to the Airport Board. Chair Hicks called for a motion. Board member Montesano moved to recommend the motion. Board member Lyons seconded the motion. Chair Hicks called for discussion on this item. Vice-Chair Meyer requested clarification on this item. He stated that he did not have a problem with recommending Mr. Kane as a Special Advisor, but rather, asked if this motion was within City Policy guidelines. Director Hamrick stated that the City Ordinance requires prior approval for recommendations such as this one. He added that as Mr. Kane would be an unofficial advisor,and his appointment is within the guidelines of the City Charter. Chair Hicks called for further discussion. As there was no further discussion, Chair Hicks called for a vote and the motion unanimously passed. c. Motion to accept a Proclamation supporting the Corpus Christi Convention and Visitors Bureau in the promotion of the City of Corpus Christi as a destination to conventioneers and visitors traveling by airline carriers serving Corpus Christi International Airport. After some discussion,Chair Hicks called for a motion on this item. Board member Lyons moved to accept a Proclamation supporting the Corpus Christi Convention and Visitors Bureau in the promotion of the City of Corpus Christi as a destination to conventioneers and visitors traveling by airline carriers serving Corpus Christi International Airport. Board member Dodge seconded and the motion carried. IV. Reports a. Parking Revenue Report Director Hamrick began his report to the Board by stating this was another"good news"'item. The Board received copies of the Parking Revenue Report for April, 2005. Director Hamrick was pleased to report that revenues were up considerably to$157,000. This improvement was despite the covered parking issues. Board member Lyons questioned the status of the covered parking. Director Airport Board Mimaes May 11,2005 Page 3 of 7 Hamrick responded that problems began with tears in the fabric due to the use of hex bolts on the vertical posts. The fabric, as well as,the hex bolt were being repaired. In the process of repairing the fabric,rust spots were found. He reported that a special coating was being applied to correct this additional problem. Mr.Roy Rodriguez,Airport Facilities Manager,interjected that 4 coats/steps were being applied to between 12 and 20 mil in thickness. He also added that the original design called for between 3 and 4 mil coating on the structure. Director Hamrick felt that the final product would be much better than what was originally designed. On another related issue,the cantilever portion of the overhang, as it attaches to the horizontal portion of the overhang and then leads upward, was not lined up exactly right and there is a sharp edge which has caused rips in the fabric. This sharp edge will be smoothed and the fabric replaced by 10-foot sections as well as padding the area. Chair Hicks inquired on the cost. Director Hamrick replied there was no cost to the Airport for these repairs. Chair Hicks inquired on when the remaining portion of the covered parking project would be completed. Director Hamrick anticipates the project to be completed by the second week in June. Chair Hicks inquired on the situation of the airport roof. Director Hamrick replied that the roof looks good. He reported that the roof contractor had the roof cleaned at their expense. He added that the roof contractor is in the process of running two tests on the west and east side. Mr.Rodriguez reported that an inhibitor has been applied to a section of the east side of the roof. He stated that two different applications were done in order to determine what would be effective. On the east side,bars of zinc were installed to prevent mold. On the west side, a test product that is new in the market is being used. The contractor will give the product 4 to 6 months to see which product will work the best. Chair Hicks asked what steps would be taken after the six months and the condition of the roof does not improve. Mrs.Keller responded that the airport still has some retainage on the prime contractor. The contractor working on the roof is a sub- contractor. She added that the roof repairs are still being covered under the warranty,but the warranty may be running out. b. Financial Report Mn.Keller reported that revenues were up to approximately 67%to 68%at this time due to certain accounts such as"Resale-Electric Power" and"Cargo Facility Rental'which have generated more revenue than expected. The focus remains on the"Oil and Gas Leases"account which is at above 88%in revenues. She also asked the Board to note the"Premium Covered Parking"account that has increased to 155%despite the on-going repair issues. This account was budgeted very low as this there were no past indicators to base projections. The revenue generated has well exceeded expectations. She also added that the remainder of the parking lot revenues are still maintaining the 67%target for both short- and long-term parking. Overall,revenues are over 70%for the year and which she feels is acceptable for the airport. Airport Board Minutes May 11,2005 Page 4 of 7 Mrs. Keller reported on expenses for the airport,the most notable account is the "Airport Parking/Transportation". Vice Chair Meyers questioned whether Account 60010 is General Fund. Mrs. Keller responded that this account is an allocation account to the City. On another topic,Board member Lyons questioned staff whether it has ever considered placing advertising billboards along International Dr.to increase Airport revenue. Director Hamrick responded that no interest was found for advertising on Hwy. 44. Board member Lyons stated that small advertising billboards could be utilized on International Dr. as another source of revenue due to the large amount of traffic entering and leaving the airport. He informed the Board that on his property in Dallas,he has several small advertising billboards which generate approximately$1 million a year. He suggested targeting the airlines, and local businesses,mails and hotels. Chair Hicks called for further discussion. There was no further discussion. c. General Activity Report(GAR) Director Hamrick reported that there was good news regarding this report. He reported that there continues to be an increase in the passenger activity for both March and April compared to previous years. Board member Ayala questioned the status of the Las Vegas direct flights. Director Hamrick stated that there was no progress on this subject. Board member Ayala questioned whether any other airline was being pursued regarding direct flights to Las Vegas. Director Hamrick stated that this topic is a continuing effort. Chair Hicks questioned if Delta would be providing direct service to Monterey, Mexico. Director Hamrick responded that Delta has expressed an interest in service to Monterey. Mrs.Keller also wanted to point out that under the Cargo allocation year-to-date revenues have been at$22,000. She informed the Board that due to the merging of DHL and Airborne Express the revenue generated is high and she expects that an increase in air cargo to go up drastically,possibly generating up to an$30,000 for the year. Chair Hicks questioned if Delta was the only airline canceling flights. Director Hamrick confirmed that Delta had cancelled their Dallas flights. He also added that Delta stock was at less than$3 per share. He added his concern about this situation and he has not approached them regarding direct flights to Monterey because of this matter. He feels that it is best to continue negotiations with Aeromar considering Delta's financial situation. No further discussion was held on this item. Airport Board Minutes May 11,2005 Page 5 of 9 V. Board Business and Reports a. Discussion on the formation of Airport Board Committees. Chair Hicks reported to the Board on forming sub-committees. He added that working with the CVB,the recent changes at the CCREDC and working on international flights,he felt that it was important to form sub-committees comprised of three or four Board members that would focus on specific Airport issues. The consensus of the membership agreed on forming these sub- committees. Chair Hicks stated the Board would be updated via email on this matter. b. Discussion on the development of Airport Board By-laws. Director Hamrick stated that he was awaiting direction from the Board on whether to pursue the development of Airport Board By-laws. Chair Hicks called for discussion. Board member Montesano stated his concern as to whether the development of by-laws would be worthwhile. Vice Chair Meyers questioned what rules the Board is presently operating under. Director Hamrick responded that the Board currently follows Robert's Rules of Order and the City Charter as well as applicable State of Texas laws. Mrs.Keller questioned if all other Advisory Boards had by-laws. Staff informed her that various Advisory Boards do have specific by-laws in place. Board member Dodge felt that with the Board operating under Robert's Rules of order,having a separate set of by-laws would be a waste of time. c. Board Member Absences Chair Hicks called for a motion on the absence of two Board members not in attendance. Director Hamrick reported that Board member Whitmore called to excuse her due to a family medical appointment and Board member Bennett called in due to a work-related conflict. Chair Hicks asked if anyone else called in. No one else called in. Chair Hacks called for the question. Board member Montesano moved to excuse all members absent. Board member Lyons seconded. Chair Hicks called for discussion. He asked if excusing all members absent or whether to excuse those who called in with an excuse as acceptable. Director Hamrick informed the Board that by City Code,it is required that absences must be addressed within 30 days of the absence. He added that those who have not called in to be excused can have their absence dealt with at the next meeting. Board member Lyons commented that last year the Board meeting were not held regularly. He felt that it made it very difficult to plan to attend the meetings. He feels that the Board should be lenient as far as attendance is concerned until the membership realizes that the meetings will be regularly on the second Wednesday of the month. He felt that absences should only be addressed when it becomes an issue. Chair Hicks agreed with him on this topic. Board member Montesano agreed that the absent member should be given the benefit of the doubt. Chair Hicks call for a vote and the motion carried. d. General Comments Board member Lyons commented that at the last meeting he mentioned regarding the accessible tables. Mrs.Keller responded that she has been in contact with the Airport Board Minuies May 11,TOGS Page 6 of restaurant manager regarding this matter. She added that some information regarding this topic should be in her mailbox by the end of this meeting. She informed the Board that this issue is on the list of items she has brought to the owner's attention. She added that the owner is committed in doing everything the Airport requests. The owner stated to her that he has some concerns and he will be in Corpus Christi next week. He will be at the Airport for two days to make sure that everything is up to standards. Director Hamrick stated that he did follow up with the local manager and was assured that this would be taken care of,but nothing happened. The owner of the company was informed and assured Airport staff that it would be taken care of Board member Lyons wanted to commend the Airport for the work done towards handicap accessibility. Board member Montesano questioned how food service was going overall. Director Hamrick informed the Board that on Sunday with all the diversions due to weather,the restaurant did great business. They doubled their usual sales. Mrs.Keller responded that they are doing at the level of the previous Chili's and Whataburger was doing and that it was without having the full restaurant open. They were expecting to exceed their level by at$100,000 a year. She feels that they will do that during the summer months. She stated that her intent in meeting with owner is to address some issues before the summer peak travel months in order to give the best service possible as it is a reflection of the airport. She added that the owner,Mr. Glassman, is totally committed to quality and excellence in his staff and in his food. She feels good about this but has concerns about this at the local level. Chair Hicks stated that the owner is very supportive individual. He also added that he met with Mr.Flynn and Mr. Glassman who voiced their commitment to the community. He feels that this organization is committed to the community and proud of the Corpus Christi operation. Board member Lyons questioned the status of the post-check point restaurant build-out. Mrs.Keller stated that information regarding the preliminary design would be in her box by the end of this meeting. They have the final plans and she is looking for final approval and it should begin by May 31". She also added that since the restaurant is not working through the City,they can have it built faster as they are not restricted by City requirements and the bidding process. Board member Lyons questioned the status of the demolition of the old ATC Tower. Director Hamrick stated that the 90%drawings are under review and he estimated that it would be another month before this project would go out for bid. Chair Hicks questioned the status on the asbestos removal. Director Hamrick stated that the removal is on target. Chair Hicks reported that he had lunch with Mr. Fernandez of the TSA and because of the press release this morning,they discussed the perception of the traveling public that security is difficult in flying in and out of the airport. Mr. Fernandez informed him of some of the objects confiscated at check point. Chair Hicks advised Mr. Fernandez that the general flying public should be made aware Airpor!Doard Mimues May 11,200S Page 7 of 7 of what is confiscated in order to stress the important of security. Director Hamrick confirmed the Board members had received the press release. Board member Lyons commented that he appreciates the email updates. VI. Adjournment As there was no finther discussion, Chair Hicks called for a motion to adjourn. Board member Montesano moved the meeting be adjourned. Board member Lyons seconded and the motion passed. The meeting was adjourned at 4.59 p.m.