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HomeMy WebLinkAboutMinutes Airport Board - 11/09/2005 Minutes � - t� coRpuf x STI Airport Board Meeting INTERNATIONAL November 9,2005 CP� AIRPORT Board Members Ci /Air art Staff ® Ed Hicks, Sr.,Chairman ®Dave Hamrick,Director ® Mjwk Meyer,Vice-Chairman ®Debra Keller,Assistant Director ® Nelda Martinez, Member ❑Roy Rodriguez,Facilities Manager ® Frank"Rocco"Montesano,Member ❑Ralph Zapata, Engineer II ® Glenn E. Lyons,Member ® AdelIe 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 meeting was called to order by Chair Hicks at 3:33 p.m. A quorum was not present. (Board member Montesano arrived at 3:35 p.m. A quorum was now present.) 11. Approval of the minutes for the Airport Board meeting held October 12,2005 Chair Hicks called for approval of the minutes. Board member Lyons asked that the minutes be corrected to reflect his absence as excused. Board member Feferman moved to approve the minutes of the Airport Board meeting for October 12,2005 as amended. Board member Whitmore seconded and motion carried. (Board member Lyons arrived at 3:36 p.m. Board member Dodge arrived at 3:37 p.m.) III. Action Items a. Motion to approve signage for the Corpus Christi International Airport and the Corpus Christi International Airport Industrial Park. (Board member Martinez arrived at 3:46p.m) Chair Hicks asked the membership to refer to the signage concepts mailed to Board members. Director Hamrick gave the Board background information on this item. Based on the Board's feedback,PGAL developed the conceptual drawings in the Board's packets. Chair Hicks called for discussion on this item. Mrs.Keller stated that Board member Martinez had a question whether the Industrial Park sign was to be composed of granite. Mrs.Keller stated the response from PGAL was that granite k m Airport Board Minutes November 9,2005 Page 2 of 7 could be incorporated within the sign. Board member Lyons also stated that the city logo affixed on the blue section could be made removable in the event the City changed logos. Mrs.Keller reiterated that PGAL was agreeable to any changes the Board recommended. Chair Hicks asked for discussion on whether the signage for the Airport and the signage for the Industrial Park should be the same or different. Board member Whitmore stated that discussion was heard at the last meeting with PGAL on making the two signs different in order to differentiate between the two areas. Board member Martinez added that the City logo should be incorporated into the signage for the Industrial Park. Director Hamrick added that the electrical design had been excluded from these conceptual drawings. Board member Whitmore felt that the signs should be different in order to differentiate the two areas of the property. Director Hamrick asked the Board to comment on whether the three flags SHuld be incorporated into the Industrial Park signage. He felt that it should be in the Airport signage,but questioned whether the Board felt it should also be put into the signage of the Industrial Park. The Board's consensus was that the Industrial Park did not need to have flags incorporated into the signage. Chair Hicks called for a motion. Board member Martinez moved to accept the conceptual drawing for the Airport signage amended to include the Airport logo below the wording and removing the grey scored lines in the white material. Board member Meyer asked whether the signage would be mirrored on both sides. Mrs. Keller stated that the signs were to be mirrored. Board member Lyons asked to amend the motion to include that the back of the Airport sign state"Welcome to Corpus Christi". Director Hamrick asked that the Board consider adding the City logo to the back of the sign. The motion also included the removal of the flags from the Industrial Park signage. Board member Feferman seconded the motion as amended and the motion passed. b. Motion recommending approval of issuing a bid for oil and gas exploration and recovery/production on approximately 160 acres of land owned by the Airport and in which the Airport owns 50% of the subsurface mineral rights. Director Hamrick updated the Board on oil and gas production revenue at the airport. He began by stating that staff had been aware that production would eventually decrease. He reported to the Board the amount of loss in production for each well on Airport property at this time. He stated that this decrease has impacted the Airport's revenue. He also added that EOG has approached staff requesting additional drilling. He requested the Board's concurrence to proceed with this and added that the decrease in revenue would be addressed in depth at the next Board meeting. Airport Board Minutes November 9,2005 Page 3 of 7 Discussion was held on this topic by the Board. Board member Montesano moved to accept staff recommendation approving issuance of a bid for oil and gas exploration and recovery/production on approximately 160 acres of land owned by the Airport in which the Airport owns 50%of the subsurface mineral rights. Board member Lyons seconded and the motion passed. c. Motion recommending the City Council authorize the City Manager or his designee to execute Amendment No. I to the contract with Robles & Sons for the Corpus Christi International Airport Traffic Control Tower Demolition Project in an amount not to exceed $68,750 for a total restated amount of$343,750. Director Hamrick referred to the diagram and gave background information on this item. The FAA funded 95%of the demolition of the old Air Traffic Control Tower because of a line-of-sight issue between the now control tower and aircraft approaching Runway 17 or departing Runway 35. He informed the Board that the old Tower has been completely removed. He added that staff was able to secure through the competitive bid process a very low bid for the demolition of the old ATCT,below what was estimated in the budget. He also stated that there are several buildings that were attached to the old ATCT which are no longer needed and the FAA has agreed to fund 95%of the demolition of these remaining buildings. He added the only buildings that will remain will be the Electrical and Mechanical buildings. The area will eventually be paved in order to increase the number of spaces rented to the Car Rental Agencies thereby increasing revenue. Board member Dodge moved to approve the motion recommending the City Council authorize the City Manager or his designee to execute Amendment No. I to the contract with Robles & Sons for the Corpus Christi International Airport Traffic Control Tower Demolition Project in an amount not to exceed$68,750 for a total restated amount of$343,750. Board member Montesano seconded and the motion passed. IV. Reports: a. Parking Revenue Report Mrs. Keller reported that October,2005 revenue was the second highest for the year at$172,000. May,2005 was the highest month at$174,000 in revenue. Mrs. Keller reminded the Board of discussion held during review of the Airport Budget regarding the automation of the third lane in order to provide service 24-hours a day. She informed the membership that this has been accomplished. She added that signage and lighting has also been added along with the capability of accepting major credit cards. b. General Activity Report(GAR): Chair Hicks commented regarding international flights. He informed the Board that the first flight for Aeromar would be on December I2. He added the airline would be Airport Board Minutes November 9.2005 Page 4 of 7 reviewing their status on a quarterly basis. He added that the airline"break-even" would be a 50%load factor. He asked the Board to figure a way in order hit the 50% load factor within the first 90 days. He added that Aeromar has agreed to go from 3 flights a week to 5 flights a week if the 50%load factor is achieved. Aeromar may even go to 7 flights a week if the demand is there and, in the future, the possibility of direct flights to Mexico City. Director Hamrick recapped that originally flights to Monterey,Mexico would begin on November 21". He explained the delay in their initial flight. Firstly, Aeromar did not have their Department of Transportation permit. They have since received their permit. Secondly,they were unaware of an FAA order that was issued in September that required all foreign air carriers to submit and environmental questionnaire for review 90 days in advance of any scheduled flights. This matter was resolved Monday of this week. Director Hamrick informed the Board that Aeromar had agreed to a range of prices for their flights. The rates to fly direct from Corpus Christi were compared to flights through Houston to Monterey. It was established that the rates from Corpus Christi to Monterey were cheaper. Aeromar's introductory price rate will be$133 one-way and round-trip was $238 before taxes. Director Hamrick also discussed Aeromar's progress in obtaining ground handling and ticket sales.: He stated that originally they asked Continental and Delta for proposals for local ticket sales and ground handling. Continental's proposal was 5310 per turnaround and Aeromar was agreeable but questioned fees for training. Due to the hold-up for the FAA 90-day waiting period,Aeromar withdrew from negotiations with Continental. Upon renegotiations with Continental, their price per turnaround had increased to$475. With that in mind, Aeromar began negotiations with Delta whose price per turnaround is $425. Director Hamrick reported that three Aeromar representatives would be arriving tomorrow to meet with Delta among others. Aeromar representatives have conveyed to Director Hamrick that should Delta drop their price to$385,they will work with them. Director Hamrick explained to the Board that in Mexico the majority of airline tickets are sold through travel agents. Aeromar is working on finalizing a code-share agreement with AeroMexico. Once this agreement is in place,they will be on AeroMexico's website beginning January,2006. At this time,Aeromar's website is not user friendly and is completly in Spanish. Once all of these issues have been resolved,Director Hamrick stated that December 121e would be the start date for flights to Monterey. A toll-free phone number will also be available. Director Hamrick added that Aeromar will also need to pass an FAA station inspection in order to begin flights. This inspection is scheduled for November 17`b. He also informed the Board that a part of the inspection is to demonstrate to the FAA Airport Board Mlmrtes November 9,2005 Page 5 of 7 that all training has been completed. Aeronm plans on manning their ticket counter with 5 employees that will be trained and overseen by either Delta or Continental, whomever they finalize an agreement with. There are still issues that need to be dealt with regarding immigration issues for Aeromar's employees. He stated that Aeromar would also be meeting with Mr.Juan Cardenas with U.S. Customs on their visit tomorrow. Mrs. Keller added that AeroMexico's website was excellent even compared to any American website. She also added that tickets would be booked at the ticket counter, through the toll-free phone number and through travel agents. She also stated that vacation packages will be offered. Unfortunately,no advertising will be done until the permitting has been completed. Director Hamrick commented that if Aeromar establishes an agreement with AeroMexico, Corpus Christi flights could be expanded to include Mexico City thereby facilitating travel to other parts of Mexico. Director Hamrick referred to the GAR indicating a 5.4% increase from October, 2004. He also informed the Board that in December,Continental will be adding an additional flight making it 10 flights per day. Mrs.Keller added the GAR reflects that Continental has been operating at an 89%load factor therefore indicating the necessity of the additional flight. c. Director's Report: Chair Hicks asked for the status of the completion of Runway 13-31 Rehab Project. Director Hamrick reported that there have been challenges with the contractor who up until recently had been on schedule. The project was scheduled to be completed by November 1 la',but has been changed to November 218`. FAA is scheduled to do a flight check on that date. The contractor has assured staff that,barring any weather problems,the completion of the project will be November 21"t. He reported that another project of switching the VASIs out for PAPIs is ongoing,but added this is an FAA project. Further discussion was heard on Aeromar regarding proposed flight times, associating with Driscoll Children's Hospital and advertising in the community. Director Hamrick addressed the association with Driscoll Children's Hospital by stating that the hospital had been approached and is contacting Aeromar directly regarding this issue. (Board member Meyer left at 4:25 p.m) Board member Dodge inquired whether there had been complaints regarding TSA. Director Hamrick stated that complaints were isolated. He added that he had met with Mr. Leo Vasquez,Regional Security Director for this part of Texas and his Airport Board Minutes • November 9,2005 Page 6 of 7 subordinate,Roberto Fernandez,who indicated that they will continue good customer service. They were unable to give any information on additional staffing. Mrs.Keller stated that a scrolling sign will be installed over the elevator shaft with the ability to advertise for 10 companies. She added that there is a great deal of interest in advertising at the airport. V. Board Business and Reports: a. Board Member Absences: There were no absences as Board member Bennett has resigned his seat on the Board. Chair Hicks mentioned that Mr. Bennett had submitted his letter of resignation to the Board on October 13a'noting that he had accepted a job offer in Fresno, California as Executive Director of the City's Convention and Visitor's Bureau. Chair Hicks added that by the next meeting a replacement for Board member Bennett would be on-board. Discussion was held by the Board on recruitment for the City's Boards and Commissions. b. General Comments: Chair Hicks requested information on Game Time's post-checkpoint facility. Mrs. Keller reported that bids have gone out for this project. She added that there has been some difficulty in getting bids,but she was hopeful that the work would be complete by the holidays. Board member Lyons asked for information on whether private planes would be able to file international flight plans once international travel has begun. Director Hamrick stated he would research this and report back to the Board on this matter. Board member Lyons also voiced his concern regarding fuel prices at the Airport. He stated that in Dallas fuel prices are at$3.67 per gallon while at CCIA the price of fuel is$5.67 per gallon. Director Hamrick stated that per the Airport's Iease agreements with Fixed Based Operators,the Airport is unable to control fuel pricing. He added he would research this issue and report back to the Board at the next meeting. Board member Martinez asked that a comparative analysis on fuel pricing be done of similar sized airports in the area. Director Hamrick stated that an audit could be done of their books in order to establish what their fuel costs are,and added that the Airport has not increased their costs in the last 12 years. Board member Martinez suggested that an audit could be implemented only after a comparative analysis is done. Director Hamrick stated that several parties have shown an interest in starting up fuel distribution facilities. Director Hamrick requested Chair Hicks comments regarding holding the December meeting. Chair Hicks called for a consensus of the Board on this issue. The consensus was to cancel the December meeting with the exception of keeping the Board abreast of the progress of international flights, P Airport Board Minuies November 9,1003 Page 7 of 7 VI. Adjournment: As there was no farther business, Chair Hicks called for a motion to adjourn. Board member Dodge moved and Board member Lyons seconded. The motion carried. The meeting was adjourned at 4:24 p.m.