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HomeMy WebLinkAboutMinutes Airport Board - 05/10/2006 ` �d1j1 R; Minutes ^� ., t►cI Airport rport Board Meeting Ct1c; fiY INTERNATIONAL May 14,2006 0� OFQ� 'S AIRPORT a 1 Board Members Ci lAir ort Staff gZift� ®Jerry Kane,Chairman ®Dave Hamrick, Director ®Frank"Rocco'Montesano,Vice-chair ® Debra Keller,Assistant Director ®Glenn E. Lyons,Member ®Adelle Ives,Management Assistant ❑J.C.Ayala,Member ® Don Fefeiman,Member ® Sylvia Whitmore,Member ®William Dodge,III,Member ❑Jesse Olivares,Member ®Sam J. Susser,Member Day Wise,Member ®Ed Hicks,Sr.,Advisory 1. Call to Order The meeting was called to order at 2:33 p.m.by Ed Hicks. A quorum was present. U. Board Business a. Election of Airport Board Officers Preceding the election of officers,new Board members, Jay Wise, Sam Susser and Jerry Kane were asked to give a short bio as an introduction to the senior members of the Board. The floor was opened for nominations for the Chairman of the Airport Board. Board member Dodge moved to elect Board member Kane. Board member Lyons seconded and the motion was passed by acclamation. The floor was then opened for nominations for the Vice-Chairman of the Airport Board. Board member Lyons moved to elect Board member Montesano. Board member Ayala seconded and the motion was unanimously approved. b. Board Member Absences Board member Feferman moved to excuse Board members Olivares and Whitmore for their absence of this meeting. The motion was seconded by Board member Lyons and unanimously passed. (Vice-chair Montesano arrived at 2:40 p.m) e. General Comments Airport Board Minutes May 10,2006 Page 1 of 7 Chair Kane read a letter to Mr.Hicks from Mayor Garrett to the Board. The letter appointed Mr.Hicks as an ex-officio member to serve as Special Advisor for International Flight Development. Chair Kane made a motion to officially appoint Mr. Hicks as Special Advisor for International Flight Development. Sam Susser seconded and the motion was unanimously passed. Mr. Hicks gave his thanks to the Board for their support on this appointment. He also added that he would continue to work on the development of international flights. (Board member Whitmore arrived at 2:43 p.m) Mr.Hicks reported to the Board that the food and beverages at the meeting were provided by Game Time, the concessionaire at the Airport,in order to showcase their catering services. M. Approval of minutes for the Airport Board meeting meld March 8,2006. Mr.Hicks called for a motion approving the minutes for the Airport Board meeting of March 8th,2006. Vice-Chair Montesano moved to approve the minutes and Board member Whitmore seconded. The motion carried. IV. Action Items a. Motion recommending names for the street located in the new International Business Centre. Director Hamrick reported that on the completion of the Centre and anticipated the street to be opened this week to traffic. He added that the area did not need to be platted and would be requesting the Board to suggest names for the street. Discussion by the Board followed. Chair Kane asked that this item be tabled until the June Board meeting. Board member Dodge recommended that staff poll the Board via email for suggested names which could be voted on at the next meeting. Board member Susser reported that Cliff Maus had recently passed away and would like to sec the street named after him. Board member Susser directed a question regarding platting of the Centre to Director Hamrick. Director Hamrick answered Board member Susser's question regarding platting. Mr.Hicks suggested that staff provide the new Board members background information on the International Business Centre in order that they become familiar with the development of this project. b. Motion recommending the City Council authorize the City Manager,or his designee,to execute an agreement with the Corpus Christi Regional Economic Development Corporation (CCREDC)in the amount of$50,000 for Airport Business Development Services. Director Hamrick reported this item was a six month extension of the previous existing contract the Airport had with CCREDC. Staff is currently working Airport Board Minuies May 10,2006 Page 3 of 7 through issues with Scannell Properties for the lease of 50+acres of airport property. He added the City Manager had requested the Airport continue to utilize the professional services of the CCREDC for an additional six months. The question was called and Viee-chair Montesano moved to recommend City Council authorize the City Manager,or his designee, to execute an agreement with the Corpus Christi Regional Economic Development Corporation (CCREDC)in the amount of$50,000 for Airport Business Development Services. Chair Kane seconded and discussion followed. Vice-chair Montesano questioned what services CCREDC has provided for the initial contract before authorizing an additional six months. He asked for an explanation of services that were provided. Director Hamrick reported that CCREDC referred an interested party who staff has been working with on the final stages of a long-term lease agreement for the development of 50+acres in the International Business Centre area. He felt that CCREDC's assistance in this deal has been very beneficial. He added that CCREDC Director,Roland Mower, was scheduled to attend this meeting. Mr.Mower had informed staff he would be attending another meeting, but would make every attempt to get to the Board meeting to answer any questions the members might have. Director Hamrick reported to the Board that the agreement with Scannell Properties is in its final stages and the lease was being reviewed by a third party with experience in this type of business. Vice-chair Montesano questioned if the third-party review was being paid for by CCREDC. Director Hamrick stated that the third party review was to exam the terms and conditions of the lease and was separate from services provided by CCREDC. Vice-chair Montesano asked for clarification on what services have been provided by the CCREDC during the initial 1-year contract; and what services will be provided during the additional six-month period. Board member Susser expressed his feelings on CCREDC's position in bringing business and jobs to the Community. Chair Kane questioned where fimding would be coming from to pay CCREDC's six-month extension. Board member Susser questioned what would happen if the Board did not recommend this motion. Director Hamrick stated that if the Board does not recommend this motion,even with a staff recommendation of approval,when this item goes before City Council, the Board's position will be noted. Board member Susser questioned what would be the response should City Council question the Board's position. Director Hamrick stated his satisfaction, on CCREDC's performance with respect to the referral of Scannell Properties who will be leasing 50+acres. He added this agreement would not have happened without CCREDC's contribution. By executing the agreement and the construction of the infrastructure, the Airport supported CCREDC's efforts. Airport Board Mlmoes May 10,2006 Page 4 of 7 General discussion was heard on CCREDC's function. Chair Kane gave background information for the benefit of the new members on this topic. Board member Dodge commented that CCREDC's mission is very simple. It is to create jobs for all within the Community including members of the Board who are business owners. He added that CCREDC's funding comes primarily from the City along with the Port of Corpus Christi. He added that county funding had been withdrawn in the recent past. Based on how the CCREDC is funded,Board member Dodge supported Director Hamrick's position on supporting the CCREDC and added that by not approving this motion, it could be misconstrued that the Board does not support economic development. Board member Susser interjected that the Board's position is also to protect the financial integrity of the Airport. Chair Kane felt that results would be the key to whether this motion, should be approved. He added that due to decline in revenues at the Airport,the City would need to work towards measures that would expand services which would increase revenue. A point of order was called and it was suggested that this item be tabled in order to get an explanation from CCREDC on what services would be provided by approving this contract extension. Board member Whitmore added that due to the fact that Mr. Mower was unable to attend this meeting, the Board could not make a decision on this motion.Board member Lyons questioned Director Hamrick directly by asking him if he felt that the Airport received$100,000 worth of services from CCREDC. Director Hamrick responded affirmatively and reported to the Board on the status of the agreement with Scannell Properties. At this point,he interjected that a special Board meeting may be called to approve this lease agreement once it becomes final. Director Hamrick continued by stating that this lease would be generating thousands of dollars a year for the Airport for many years in the future. He strongly felt this development would only continue to grow. Commenting on the Board's valid concern,he reiterated that CCREDC's job is to promote jobs in Corpus Christi and questioned where the Airport would be,with respect to the pending lease agreement with Scannell Properties,without CCREDC's support. The question was called and Board member Susser moved to table this item for the May meting. Board member Whitmore seconded. At this point, Chair Kane questioned whether tabling this item would delay the City Council. Director Hamrick felt that another special meeting may need to be called for the approval of the Scannell Properties lease and that this item could also be addressed at the special meeting. Board member Feferman questioned the need to have Stewart Title review the lease agreement. Director Hamrick responded that this action had been taken based on the Board's recommendation at a previous meeting. Airport Board Minutes May 10,2006 Page 3 of 7 Question called and the motion passed tabling this motion for the next Board meeting. Staff provided the meeting minutes to Director Hamrick to respond to Board member Feferman's concern on the review of the Scannell Properties lease by Stewart Title. Director Hamrick reported that the City Attorney for the Airport has reviewed the lease and,going on Board member Nelda Martinez' recommendation to have a third party review the Iease from the business aspect, Stewart Title was undertaking the task. Director Hamrick also added that this service was being provided at no cost to the Airport. c. Motion recommending an Ordinance appropriating approximately$125,000 in the Airport Operating Fund 4610 to fund emergency expenditures for air chillers at Corpus Christi International Airport•,amending FY 2005-2006 Operating Budget adopted by Ordinance No. 026385 to increase appropriations by approximately$125,000; and declaring an emergency. Director Hamrick gave briefbackground information on the AC system for the airport. In his comments,he stated that the chillers were reused from the old terminal and placed in the new terminal. A considerable amount of money has been expended to get the old chillers up and running. He added that the Airport's AC system is currently operating under mobile units. Staff is in the process of having Bath Engineering conduct a two-part process involving a power study to insure there is sufficient electrical capacity to power the two units. Once that is verified,a temporary connect will be put in place in order to remove the two temporary generators which are currently powering the temporary unit. Staff will also be working with the design bid for the new unit which should save up to 45% of the current fuel cost. Chair Kane felt that CCIA could negotiate a better rate from AEP in order to switch to electric power. Director Hamrick felt that it would be difficult as the Gas Department is part of the City. Discussion was heard on the efficiency of gas over electric power. Discussion was also heard on the approval of expenditures of Airport funds. The question was called and Vice-chair Montesano moved to approve the motion recommending an Ordinance appropriating approximately$125,000 in the Airport Operating Fund 4610 to fund emergency expenditures for air chillers at Corpus Christi International Airport;amending FY 2005-2006 Operating Budget adopted by Ordinance No.026385 to increase appropriations by approximately$125,000; and declaring an emergency. Board member Dodge seconded and the motion passed. Reports Airport Board Minutes May 10,2006 Page 6 of 7 a. Parking Revenue Report Assistant Director Debra Keller reported that this month's 2%decrease, approximately$3,300,was not significant. She also added that the USBC did not impact the parking Iot revenue as they primarily rent cars upon their arrival. She is hopeful that next month's figures would be better. b. General Activity Report(GAR) Director Hamrick requested the Board review the GAR report handout. He added that April 2006 compared to April 2005 increased 11.3%. He felt that this was partly due to the USBC bowlers and Continental's decision to add flights. Director Hamrick felt that the high load factor numbers was an indication of the necessity of additional flights. Chair Kane asked that a report on the high load factors being experienced by the airlines be discussed at the next meeting. Board member Whitmore asked that staff provide a monthly Profit&Loss report. (Roland Mower and Steve Jenkins with CCREDC arrived at this point in the meeting.) A question was raised as to whether the CCREDC item should be discussed at this point in the meeting as Mr.Roland Mower had arrived. The questions was called and Vice-chair Montesano moved to reconsider Item N,b. Board member Whitmore seconded and the motion passed Mr.Hicks asked that Mr. Mower give a few brief continents on CCREDC's behalf and Item N,b would be addressed at the next meeting. Mr. Mower and Mr.Jenkins with CCREDC began by introducing themselves and then reported to the Board on different projects that their organization has been working on. He reported on recent staff change and named the new staff members. Mr. Mower went on to mention several key project that CCREDC has had a part in bringing to fruition. o Working with the Port of Corpus Christi on a large multi-million dollar project. Corpus Christi is one of the finalist cities for selection of the project. o McDermott Site in Aransas Pass o Louisiana company recently purchased Marine Fabricators. The company hopes to build the business back up to a 400-700 employee facility. i Airport Board Minutes May 10,2006 Page 7 of 7 o Kiewit is currently working on several sizable projects. o Working with the Port of Corpus Christi on the La Quinta Terminal Project. o Working on the Downtown region and extending to Padre Island. In addition to the project, CCREDC hosted the Economic Summit in January which was requested by the Mayor. He stated that two hundred regional and business officials attended this event where CCREDC presented historical economic analysis of the region. A historical economic study was conducted at this event which will assist in creating an incentive matrix that will help target key markets. He anticipates completing a regional economic development plan within the next six months. He also commented on his organizations appreciation of the Airport's support. Mr. Mower went on to report on the USBC's impact on the community by stating that there have been 15 different teams in the City at different times. The new flights have been a big benefit to those USBC members flying into Corpus Christi. He added that he would be glad to come to the next meeting to give a better presentation to the Board. Board member Fcfcrman voiced his concern on the review of the Scannell Properties lease. He felt that it would be better to have someone with this expertise and not a title company. Director Hamrick read the minutes of February,2006,which indicated the Boards recommendation on having a third party review the lease. Mr. Hicks asked that staff give the Board a tour of the US Customs area. Chair Kane thanked Mr. Hicks'on behalf of the Board for his passion and time devoted to the development of the Airport. VI. Adjournment As there was no further business,Vice-chair Montesano moved to adjourn and Chair Kane seconded. The motion passed and the meeting adjourned at 3:50 p.m.