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HomeMy WebLinkAboutMinutes Airport Board - 03/14/2007 NOTES ON DISCUSSION CORPUS CHRISTI INTERNATIONAL AIRPO._2BOARFRE C Imp_ 1400 INTERNATIONAL DRIVE �l!I El AVIATION ADMINISTRATIVE CONFERENCE ROOM CORPUS CHRISTI �T ry� �i���r �p 0 INTERNATIONAL CORPUS CHRISTI,TEXAS 1 a ?01g AIRPORT MARCH 14"',2007,3:30 P.M. BOARD MEMBERS S Jerry Kane, Chairman _Don Feferman,Member Frank"Rocco"Montesano,Vice-Chair _WiIliam 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 a quorum was not present,the meeting could not be called to order. Discussion followed. R. Approval of the minutes for the February 7''special-called meeting of the Airport Board.. Since a quorum was not present, Vice-chair Montesano reported that the minutes would be approved at the April meeting of the Airport Board (Director Hamrick Director Hamrick introduced Carl Gross, the new Operations Manager for CCLI to the Board members present. Carl was formerly the Asst.Director of the Burlington, Vermont airport.) III. Presentations: 1. Presentation of Mercury Air Center's Proposed Facility Expansion At the last Board meeting, Mercury Air Centers had expressed an interest in extending their lease which will expire within the next two years. In light of their interest to renew their lease,Director Hamrick informed the Board that Mercury Air Service was invited to make a presentation to the Board regarding anticipated improvements their corporate offices will be making to their facility. Director Hamrick introduced John Gravell, Mercury Station Manager, and Chris Kontur, Mercury Project Manager, who would be making the presentation for Mercury Air Centers. He added that this presentation was part of the lease negotiation process, especially since additional outside interest regarding this lease has been expressed. Corpus Christ. 4mational Airport Board Minutes March 14,2007 Page 2 of 6 Mr. Kontur began his presentation with a brief background report on Mercury's facilities. He informed the Board that in 2005 Mercury began a capital expenditure program system-wide which totals twenty-two facilities across the country. He has been charged with spending approximately $50 million on these facilities. These renovations are part of a re-branding effort by Mercury Air Centers and to put capital improvements into facilities that are in need. Mr. Kontur reported that he will be assessing this facility and targeting what needs to be done to bring it in line with the rest of Mercury's facilities. His vision for this facility is to have more of a presence from both the ramp and street side. He presented a rendering of the anticipated renovations of the facility to the Board. He informed the Board that the entire facility would be renovated; all four hangars, the fuel form, the canopy and the parking lot. Mr. Kontur went on to give a detailed description of all the proposed renovations, following along with informational packets distributed to those present at this meeting. Mr. Kontur added that based on the needs of this facility the changes would not just be aesthetic but operational as well. The customer service area would be expanded as well as the line service area. He added that the operational aspect would be expanded to include an additional 10,400 foot hangar for corporate storage. Mr. Kontur reported that painting has already begun on Hangar 3. Along with this painting, all hangar roofs will be redone, new curbing, new drainage, resurfacing of the entire parking lot, landscaping, lighting and signage and at completion of this project the entire facility will be completely redone. Once a new agreement has been negotiated on this lease, Mr. Kontur stated that he would put together a master plan for the new facility. To accommodate the General Aviation community, Mr. Kontur proposed to include insulated t-hangars, self-fuel facilities and wash-racks. Vice-Chair Montesano opened the floor to questions from the Board. Board member Lyons strongly expressed his feelings on the new facility meeting ADA accessibility compliance. He also asked for Mr. Kontur's opinion on the need for a fire sprinkler system in a hangar that contains fuel and solvents. Mr. Kontur stated that he has come across this issue nationwide. He reported that regulation NFPA 540 states that hangars larger than 10,000 square feet must have a sprinkler system that is a foam fire suppression system. He also added this type of system would be$600,000 to$700,000 and cost prohibitive for a 10,000 square foot hangar. Mr. Kontur assured Board member Lyons that this facility, as well as others he has worked on throughout the nation, will strictly adhere to ADA accessibility compliance. y w f Corpus Christ. bmational Airport Board Minutes March 14, 2007 Page 3 of G Board member Fefe man questioned what the timeline for this project would be. Mr. Kontur hoped to have the start of construction within 90 days after the lease renewal has been approved. He felt that completion of the facility would follow within the Year. Vice-chair Montesano questioned what the standard length of time would be for this type of lease. Director Hamrick stated that the typical lease length of time is twenty years. He added that the Airport is prohibited by state law to have a lease longer than forty years but, industry wide, twenty years is the typical length of time for this type of lease. Vice-chair Montesano questioned the outside interest on this lease. Director Hamrick stated that Mercury's proposal was attractive enough to move forward with it as soon as possible after Board and Council approval, but since outside interest was expressed, he felt that the Board should consider all options. He added that at this point in time, the outside interested parties have not submitted a proposal. Vice- chair Montesano questioned what would be the time line for moving forward with this or any other proposal. Director Hamrick reported that Mercury still had another 30 months on their existing lease;but,negotiations with Mercury or an outside party for this lease could begin. Randy Rowe with Halo-Flight questioned Mr. Kontur of his organization's status in light of the new renovations. Mr. Kontur responded that Mercury would impose their design on Halo-Flight recently renovated office space. He also added that at present there would not be an increase in use of the facility, but added that at some point in the future, it would be necessary. Director Hamrick questioned Mr. Kontur on working with U.S. Customs to have a facility at Mercury. Mr. Kontur stated that he was very interested in considering this issue. Director Hamrick explained to Mr. Kontur that CCIA is looking into a QTA facility on-property thereby possibly leaving the area across the street from Mercury available for lease. He questioned whether Mercury would be interested in leasing this additional space. Mr. Kontur was very interested in leasing this area as this facility needs additional parking space. Director Hamrick responded that discussion of this issue would be held during lease negotiations. Vice-chair Montesano requested Mr. Kontur provide photos of other facilities he has renovated. Mr. Kontur stated that he would provide this information to Director Hamrick to distribute to the Board. Mr. Gravell informed the Board of steps that Mercury has taken towards improving the current facility by starting to paint Hangar 3 and two weeks ago a new $250,000 � s Corpus Christ, national Airport Board Minutes March 14,1007 Page 4 of 6 fuel truck has been ordered. He felt that Mercury is moving forward to continue to improve the facility. Mr. Gravell stated that he would come back to make another presentation to the entire Board. Mr. Kontur added he would also be available for another presentation. Director Hamrick stated that after staff conferred with the City Manager, Legal and Purchasing and after looking at other options, they will put out a Request for Interest for this lease in order to move forward. He added that he would provide the Board with a list of options for the next meeting. 2. Presentation of Corpus Christi International Airport's Quarterly Financial Report Director Hamrick stated that this presentation would be put on hold to begin the presentation of the Master Plan. N. Action Items: 1. Motion to recommend approval of the Corpus Christi International Airport Master Plan. Mr. L.J. Vincik, with PGAL, and Mr. Mark McGrath, with PB Aviation, introduced themselves to the Board and began their presentation. Mr. McGrath gave background information on the development of this Master Plan. Since the September, 2006 public hearing meeting, the report has been finalized and the Executive Summary will soon be finalized. The Planning Committee will be meeting next on the Master Plan and the following week the Master Plan will be presented to the City Council. He added that the FAA tentatively approved the plan in December, 2006. Once City Council approves the final draft, it will then be re-submitted for final approval by the FAA. He added that the public document of record will be the Airport Layout Plan(ALP). Mr. McGrath re-capped for the Board that the Master Plan consists of forecasts, planning activity levels, airfield analysis,alternative analysis, final recommendations of the airfield and terminal, support facilities and financial plan. Mr, McGrath continued with the steps the plan has taken to be brought before the Board. He reported the plan envisioned an increase in passenger activity Ievels, additional new services and routes in both domestic and international area, increase volumes in air cargo; increase in the military aircraft operations, and the extension of the runways. He covered the plan's recommendations as the additional inline baggage system; a second screening at checkpoint; an additional rental car area; two * X V r( Corpus Christ. ernational Airport Board Minutes March 14, 2007 Page S of 6 additional baggage claim areas; larger meet/greet area; additional parking and additional retail area. He added that an additional cargo facility and a supporting apron; the widening of the ARFF facility; additional jet fuel storage and additional GA corporate hangars; and additional landing and take-off area were also envisioned in the plan. Mr. McGrath concluded his presentation and the floor was opened for questions. Board member Feferman questioned whether international air cargo would be available. Director Hamrick stated that there was no current CIP funding for this but the FAA would be changing it for the next funding cycle. Director Hamrick also added that TSA would be obtaining the additional equipment for the second security lane which is expected to be operational by April 15". 2. a. Motion to recommend Ordinance terminating the airline use and lease agreementwith an effective date of October 17,2004 between the City and ExpressJet Airlines, Inc. for use of space at Corpus Christi International Airport; and declaring an emergency. b. Motion to recommend Ordinance authorizing the City Manager, or his designee, to execute an airline use and lease agreement with Chatauqua Airlines, Inc. for use of space at Corpus Christi International Airport in consideration of fees that total approximately $5.95 per enplaned passenger for a term expiring July 31, 2008; and declaring an emergency. Asst. Director Keller explained to the Board the changes in the lease with Continental. Continental will remove ExpressJet from the lease as ground service provider. Originally, Continental was to have Chatauqua Airlines as the lease holder operating under their masthead. It has since decided to hold the lease under Continental with Chatauqua as the ground service provider. Chatauqua will take over providing services to Continental from ExpressJet. 3. Motion to recommend Ordinance authorizing the City Manager or his designee, to execute an airline use and lease agreement with ExpressJet Airlines, Inc. for use of space at Corpus Christi International Airport waiving most airport fees normally associated with such a lease in consideration of ExpressJet, Inc.'s establishing new air service to a destination not previously served by the Corpus Christi International Airport for a term expiring July 31, 2008; and declaring an emergency. Corpus Christ. Jernational Airport Board Minutes March 14,2007 Page 6 of 6 Asst. Director Keller reported that this lease was for ExpressJet to provide new direct air service to Austin. V Director's Report Director Hamrick stated there was a drop in passenger traffic,but he felt it was due to the weather. L Board Business a. Board member term expirations No quorum present to act on this item. b. Board absences No quorum present to act on this item. "OJT. Adjournment The meeting was adjourned at 5 p.m.