HomeMy WebLinkAboutMinutes Airport Board - 12/13/2006 j r
MEETING MINUTES r� s
CORPUS CHRISTI INTERNATIONAL AIRPORT BO
u� 1000 INTERNATIONAL DRIVE s'i �
AVIATION ADMINISTRATIVE CONFERENCE ROQ>V3
CORPUS CHRISTI r t
INTUNATIONAI. CORPUS CHRISTI,TEXAS
AIRPORT DECEMBER 13,2006,3:30 P.M.
BOARD MEMBERS
Jerry Kane,Chairman _Don Feferman,Member
_Frank"Rocco"Montesano,Vice-Chair _William Dodge,Member
J.C. Ayala,Member _Jesse Olivares,Member
_Glenn E. Lyons,Member _Jay Wise,Member
Sylvia Whitmore,Member _Sam Susser,.Member
_Ed Hicks, Sr.,Advisory Member
AIRPORT STAFF
Dave Hamrick,Director of Aviation Debra Keller,Asst.Director of Aviation
Adelle Ives, Management Assistant
I. Call to Order
As both Chair Kane and Vice-chair Montesano were not present, and as a quorum was present,
Board member Lyons temporarily filled as Chair and called the meeting to order at 3:37 p.m.
II. Approval of the minutes for the November 8'h meeting of the Airport Board.
Acting-chair Lyons called for approval of the Airport Board's Meeting minutes from the November
12`h Airport Board meeting. Board member Susser moved to approve the minutes, Board member
Ayala seconded and the motion passed.
III. Action Item
a. Motion recommending proceeding with the planning phase for a Consolidated Car Rental Quick
Turn-around(QTA)Facility.
Director Hamrick began his presentation to the Board of a consolidated rent car facility which
would include a facility for the maintenance and storage of the vehicles. He added that Corpus
Christi passengers were fond of the ability to be within walking distance of their rental cars from
the car rental counters. He showed the board photographs of the current car rental facilities. He
felt that ari"""arer°should be provided to the car rental agencies which would compliment the
airport and provide the agencies with an efficient and clean working environment. He felt that
the aesthetics of the current facilities could be greatly improved.
(Board member Wilson arrived at 3:38 p.m„ Chair Kane arrived at 3:40 p.m., and Vice-Chair Montesano
arrived at 3:41 p.m)
Board member Dodge questioned whether all rental car agencies were leasing airport property.
Director Hamrick replied affirmatively. Board member Lyons questioned whether the current
facilities are leased to the car rental agencies or is it Airport property. Director Hamrick stated
Corpus Christi International Airport Board Agenda
December 13,2006
Page 2 of 6
that all car rental agencies leased property from the Airport. He added that each of the current
facilities is maintained by their respective agencies.
Director Hamrick requested that the Board consider a QTA (quick turn-around) facility concept.
The ready-vehicles and car rental return lot would remain as is, but a new custom-designed
facility would be used by all agencies. This facility would provide vehicle storage with a
secured, fenced and lighted asphalt area with the required spaces for each agency. This facility
would provide redundancy in car washing and fueling stations. He also added that each agency
would have separate offices with a shared break-mom.
Director Hamrick continued by stating that funding for this project could be provided from
several avenues including Customer Facility Charges (CFCs). He explained that Customer
Facility Charges are collected by the car rental agencies to fund approved capital projects. The
maximum Customer Facility Charge is $1 per contract day. He reported that Customer Facility
charges collected in 2005 totaled 5199,801; in 2006, $214,032 and in 2007-$57,150 or an
average of approximately $180,000 per year. If the general consensus of the Board is to move
forward on this project, Director Hamrick felt that the next step to take would be to begin a cost
analysis to be ready for the new RFP process. An architectural and engineering firm would then
be contracted to meet with each agency to determine their specific requirements. A facility
would be designed based upon a budget for the project. Cost estimates, bid documents and
construction timeline would then be developed. He requested the Board advise staff of the
direction to take with this issue, He also added that this issue could become controversial as it
could raise the cost of renting a car at the Airport.
Board member Sasser questioned where this facility would be located. Director Hamrick stated
that the proposed site for this facility would be near the,International Business Centre. This
location would shorten the route now taken returning cars to the ready-lot.
Vice Chair Montesano questioned if the CFCs were already being collected from each car rental
agency. Director Hamrick responded that the Airport is currently collecting CFC's from the
rental car agencies and it was being used for the security at the car rental lots. (Actually this
response was in error. A per contract day security fee is collected to reimburse for the security
guard services.)Vice Chair Monetsano questioned the objective of this project. Director Hamrick
responded that his objective was to improve the aesthetics of the Airport and surrounding
facilities.
Director Hamrick felt that any upgrade by an individual car rental agency would require a
considerable expenditure of money. This joint venture would be financed over a longer period of
time than the current 5-year leases for car rental agencies at the Airport. Director Hamrick felt
that the agencies may not want to enter into this project due to the fact that they may not get the
payback within the standard 5-year lease. Board member Lyons questioned if an agency did not
want to participate in this project, could the Airport require them to participate. Director
Hamrick responded that as the leases are currently written, the Airport could not force the
agencies to participate, He did mention that leases for the car rental agencies are up for renewal
soon and the requirement for participation in the QTA could be written in the new RFP Board
member Susser suggested that if an agency chose not to participate in the project, they would
need to have their operations off-airport property. Staff agreed that this stipulation,could be
written into the new car rental agency leases.
Corpus Christi International Airport Board Agenda
December 1 ,2006
Page 3 of 6
Board member Susser stated that other airports obtain revenue from car rentals off-airport
property. Director Hamrick stated that CCIA also obtains revenue from this source. He stated
that 10% of all airport-related business is collected by the Airport. Asst. Director Keller added
that the current charge of 10% was changed from $500 per month. It was changed to 10% of
their gross revenues which increased substantially last year approximately by $5,000 to $7,000
per month. She also reported that she has spoken with two of the corporate reps of the franchises
located on property who expressed an interest in this type of facility at CCIA. These corporate
reps were inquiring because substantial improvements were being considered for the franchises
and they wanted to know if this type of facility could be developed at CCIA before they began
any improvements. She added that she would be meeting individually with all car rental
agencies more extensively to discuss this venture.
Board member Susser questioned what the purpose of this project would be. Director Hamrick
responded that the area should be the same level of appearance as the new terminal. He felt that
with the investment the community has put into the airport,he would like to see the facilities in
proximity of the airport to be of the same quality. Board member Susser questioned what the
cost would be of this project. Director Hamrick stated that it would be approximately $3 million.
Board member Susser questioned whether the area could be walled-in to improve the appearance.
Asst. Director Keller stated that it was more than a matter of appearance. She added that there
were maintenance and environmental issues involved in developing this project.
Chair Kane,in trying to determine how this project would impact on the rates of renting a car in
Corpus Christi, wanted comparison information on rental rates between Corpus Christi and San
Antonio. Director Hamrick deferred the Chair's question to the car rental agency reps present at
the meeting. It was reported that the rates for rental cars are based upon supply and demand. On
any given day, the difference could be between $1 to S2 per day. Board member Olivares
questioned whether it was more expensive to rent a car in San Antonio than Corpus Christi. It
was reported that San Antonio has more high-demand days than Corpus Christi. Board member
Olivares stated that in Dallas, the rate was higher than Corpus Christi, but their availability was
limited. Board member Dodge questioned the Car rental Agencies' position regarding this
proposed facility. The National representative stated that he has a substantial investment in his
current facility and was happy to stay at that location. The Avis representative stated that their
current facilities are not that great, but added that she was hesitant in participating in the QTA
because of the investment involved if the lease was not renewed. She also added that there were
issues to be resolved regarding separate office and storage areas. She reported that$30,000 had
been invested in a new car wash at their facility around 1 1/z years ago, but her agency was open
to the idea.
Board member Susser questioned the representatives on what the advantages would be in having
a common fuel facility. The Avis representative responded that it would depend on what is done.
She added that Harlingen has a shared wash and fuel area which makes for a quicker turnaround,
but she was unsure if there was a cost savings.
Board member Wise questioned whether there was anything that CCIA could do to entice Avis
to make the decision to investment in this project. Ms. Morgan responded that a longer lease
term would be desirable, but it could also be a detriment should business slow down. Asst.
Director Keller added that the typical car rental lease is a 5-year term with a minimal annual
s
Corpus Christd International Airport Board Agenda
December 13,2006
Page 4 of 6
guarantee based on economic factors. Vice Chair Montesano added that with this facility and the
maintenance being assumed by CCIA, costs for the agencies should go down. Director Hamrick
interjected that with other facilities, such as the one proposed, the sharing of employees could
reduce labor costs for the car rental agencies.
Vice Chair Montesano requested more cost and funding information. Chair Kane asked that a
study be done before making a determination.
Board member Dodge commented he was not prepared to vote on this, but would like to move
forward to see if this project is a feasible enhancement to the Airport.
Board member Lyons questioned, if approved, when the project would be complete. Director
Harnrick felt that it would take 7 months before construction would begin and about a year and a
half for completion,
Board member Wise questioned what other airports offer as incentives to move car rental
agencies towards a consolidated facility. Asst. Director Keller stated that many airports are
going to a consolidated facility or a QTA facility. She felt that it is crucial for this project to
succeed that the needs of each agency be met. Chair Kane asked that the advantage of the
convenience of having your car right outside the terminal not be minimized. He asked that
concepts on this facility be presented to the Board at a future meeting,
lV. Director's Report
a. Parking Revenue Report
Asst. Director Keller introduced the new Parking and Transportation Supervisor, John Johnson,
to the Board. She added that Mr. Johnson comes to the Airport with many years of cash
management experience,
She continued with the revenue report and the fact that revenues are increasing and enplanements
are not. Research will be done to find out the answer to this issue.
b. General Activity Report
Asst. Director Keller reported on the GAR which shows November to have a 3% decrease from
last November. This is still an overall increase of 2%. This is also the projected growth for the
year.
Vice Chair Montesano asked if GAR information could be obtained for San Antonio. Asst.
Director Keller stated that staff reviews the Valley's GAP, Director Hamrick stated that he
would have that information complied for the Board.
c. Construction Update
Director Hamrick stated that construction is progressing well considering weather setbacks. He
reported on the west/east flow ditch construction and that after that the construction is completed
in that area, work would move underground in the airfield. He continued by reporting on the
secondary runway, 17/35, construction work which will start on Monday. This will require the
Carpus Christi International Airport Boar d Agenda
December 13,1006
Page S of 6
runway to be closed until August. The work on the runway will include resurfacing, 25' wide
shoulders,new lights and blast pads plus additional drainage.
Director Hamrick also reported that the repairs to the employee parking lot located at the west
end of the Airport has started and had hoped to have it reopened within a week and a half,but it
looks like it will be another 2 to 3 weeks before it is completed.
Director Hamrick continued by reporting on the construction work on the apron and the repairs
on the asphalt near the American Airline gate. This work will be phased in within the next 3 or 4
months in order not to affect the airlines.
d. Advertising Campaign
Director Hamrick reported that Airport has signed agreements with Grande Communications and
Time Warner and the newspaper on an ad campaign. He added that in continuing advertisements
next year the campaign slogan of"Fly Corpus first" may change to include the full name of
Corpus Christi.
Board member Ayala inquired on the status of the online survey. Asst. Director Keller stated
that she is waiting for MIS to give her a report on the actual number of registrations for the Sky
High Points program. She added that from the forms received on-site, there were over two
hundred individuals registered.
e. Status of Houston Air Service
Director Hamrick informed the Board that an agreement was not reached between Continental
Express and Continental Airlines. He added that he had been informed that or current level of
service to Houston would not be.reduced.
f. Status of International Business Centre(133C), Semtech,and U.S. Coast Guard
Director Hamrick reported that Scannell Development has submitted an RTP for an interested
company and expects a response in January for a 30-35,000 square foot facility.
Director Hamrick reported that he and Asst. Director Keller met with Steve Jenkins with the
CCREDC and Matt Cravey, who is the realtor for this property, at the Semtech facility. He
expressed his concern regarding environmental issues both inside and outside the facility. Board
member Whitmore questioned if monitoring wells were on-site. Director Hamrick stated that
there are two monitoring wells at the site. He reported on an email he received from Semtech on
the results from the monitoring wells that are where the old storage units were located. He added
that he would be more comfortable if the monitoring was done outside of the old storage units
area. Chair Kane commented that since Semtech is a viable company, the issue should be dealt
with soon before the Airport becomes responsible for remediation.
Director Hamrick reported that US Coast Guard development is moving ahead.
Director Hamrick also wanted to Iet the Board know that he met with the Federal Security
Director out of San Antonio who agreed to support CCIA's request for an as-needed, second lane
Corpus Christi International Airport Board Agenda
December 13,.2006
Page 6 of 6
at check point. Chair Kane commented that the present crew has become much more agreeable
and pleasant to work with. Director Hamrick commented that the interim Asst. Federal Director
far Corpus Christi is a very professional individual to work with.
" , Board Business
a. Board absences
Director Hamrick advised the Board that he had received an email from Board member Feferman
that he would be unable to make the meeting.
Board member Lyons commented that he was unable to make the last meeting due to out of town
business.
Board member Dodge moved to have both Board member Feferman and Lyons absences
excused. Board member Ayala seconded and the motion carried.
Board member Olivares presented all the Board members and staff with a 75`h anniversary
commemorative Coca-Cola memento.
Board member Lyons commented that since staff began research on the FBO's fuel prices, the
fuel pricing has been adjusted to match with both Dallas and San Antonio.
Board member Lyons questioned the status of the signs for the Airport and IBC. Director
Hamrick reported that the design is ready for bid but has been postponed until after the first of
the year for a better response.
Adjournment
As there was no further business, Board member Wise moved to adjourn. Board member Lyons
seconded and the motion carried. The meeting was adjourned at 4:59 p.m,
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CORPUS CHRISTI INTERNATIONAL AIRPORT
GENERAL ACTIVITY REPORT
DECEMBER 2006
ENPLANED SEATS SEATS
*PASSENGERS +I- LOAD AVAILABLE AVAILABLE
ENPLANED DEPLANED TOTAL LAST Ya FACTOR 2006 2005
AMERICAN EAGLE 8,381 8,352 16,733 (220) 77% 10,864 11,480
ASAIDELTA 1,824 1,764 3,588 (125) 84% 2,160 2,600
CONTINENTAL 0 0 0 - 0% 0 0
CONTINTENTAL EXP 12,532 12,148 24,680 547 87% 14,337 14,635
SOUTHWEST 12,256 12,120 24,376 297 61% 20,076 22,317
CHARTER FLIGHTS 243 124 367 243 nIa nIa
TTL DECEMBER 06 35,236 34,508 69,744 742 73.8% 47,437 51,032
TTL DECEMBER 05 34.494 34,109 88,803 67.6% 51,032
(NCI(DEC) 742 399 1,141 2.2% (3,595)
REV&NON-REV
Load f=actors bvA[rline 02005 ®zaoe~H^ rr eats Available bvAirliryryryryry, .. -�,. .. „�,
ne ■2005 02006
AMERICAN 75% AMERICAN 11,480
EAGLE 77% EAGLE 10,864
2900
ASAIDELTA S4%
1 ASAIDELTA 2
1
CONTINENTAL 00% CONTINENTAL 00
CONTINTENTAL B2% CONTINTENTAL 14,935
EXP 97% EXP 14,387
SOUTHWEST 61'/s SOUTHWEW ,317
20.076
.......-..n ---- .................
LAST YR
ENPLANED YTD YTD AVERAGE AVERAGE
' YEAR TO DATE PASSENGERS +I- SEATS AVERAGE LOAD LOAD
%QF MKT ENPLANED DEPLANED TOTAL LAI'LYR AVA1665L RNPLANEp FACTO ii FACTOR
AMERICAN EAGLE 24.79% 110,287 109,484 219,771 6,169 143,298 9,191 77.0% 75.2%
ASAIDELTA 513% 22,279 23,167 45„448 (8,202) 31,140 1,857 71.5% 62.0%
CONTINENTAL 0.00;6 0 0 0 (319) 0 - 0.0% "a%
CONTINENTAL EXP 33.68% 149,476 149,145 298,621 10,303 157,849 12,456 94.70/6 85.1%
SOUTHWEST 35.85% 158,909 158,923 317,832 1,415 231,966 13,2442 68.5% 60.9%
CHARTER FLIGHTS 0.55% 2,493 2,365 058 (489) nla 208 0.0% 0.0%
YTD'2006 100% 443,444 443,064 886,528 8,877 564,253 40,313 78.6% 0.0%
YTD'2005 434,567 433,617 868,184
INCI(DEC) 8,877 9,467 18,344 2.0%
F Share YTD Enplanements by Airline 11 ❑2004 ■2005 ®2006
24°/9 AMERICAN EAGLE 44 1a87
48,637 N ASAIDELTA ,48 22,279
0 ASAIDELTA 5% 12,073
CONTINENTAL
❑CONTINENTAL O°/a
CONTINENTAL EXP 173
❑CONTINTENTA 36% Q.479
L EXP SOUTHWEST 154,016
■SOUTHWEST 1
2/112007 2:19 PM
CORPUS CHRISTI INTERNATIONAL AIRPORT
GENERAL ACTIVITY REPORT
DECEMBER 2008
FAA REPORT ON OPERATION
YTD AIRPORT OPERATIONS
AIR TAXI B GENERAL +/-'OVER SOOAO
CARRIER AVIATION MILITARY TOTAL LAST YE 70000
e00o0 �.,...
TTL DECEMBER 08 1,778 1,658 3,489 6,925 SOODa
TTL DECEMBER 05 1.9" 2.196 3.991 131 40000 �„ �������� �� ■2005
30000
AW
INC/(DEINC/(DEC) (166) (538) (502) (1,206) -IS% z � ■z00e
a000
' .�.... ;
YTD'2006 22,231 24,865 61,933 109,028 10000
0
YTD'2005 20,745 28.511 57,420 106,676 AIRTAM s 09NMAL MLrrARY
INCI(DEC) 1,486 (3^,646) 013 2,353 2% CARP= AWATON
CARGO AND MAIL
L S
ENPLANED DEPLANED ENPLANED DEPLANED +I--"OVER
ONE F MKT CARGO CARGO MAIL MAIL TOTAL LAST YEAR'
BERRY AVIATION 0.0% 0 0 0 0 0
AMERICANEAGLE 0.0% ......,....,--..........._ ....... 82_................._....... 0 ...._,_, ...........w___._.............. - .„ (652)
ASAIDELTA 0.9% 1.318 1.153 a 0 2,471 1,277
OHL(AMER]FLIGKn 66.4% 66,700 108,187 43 45 174,955 70,107
CONTINENTAL 0.0% 0 0 0 0! 0 -
CONTINENTAL EXP 3.3% 4,235 4,582 0 1 81818 2,756
UPS(MARTINAIRE AV) 7,3% 2,500 16,711 0 0 19,211 19,211
SOUTHWEST 22.0% 15,290 42,708 0 0 57,998 (5,586)
UPS(AIR NOW) 0.0% 0 0 0 0 0 82.472
TTL DECEMBER 06 100% 90,044 173,383 43 48 263,516 4,841
TTL DECEMBER 05 111.393 142,454 0 5,026 258,875
1NCI(DEC) (21,349) 30,929 43 (4,962) 4,841 2%
YTD'2006 1,148,990 1,828,831 159 30,406 3,008,386
YTD"2005 1,295,678 1,739,899 169 51,323 3,087,069
INCI(DEC) (146,888) 88,932 (10) (20,917) (78,683) .9%
........................... _...... rr���
YTD ENPLANED&bERLANED CAR-G-0 -7 YTD ENPLANED R DEPLANED MAIL
(IN LBS) (1N LOS)
2680000 200000 �mm �
1000000 ,,, 150000
t ,
100000
u.
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ED DEPLANED
ENPLANE6.
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