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HomeMy WebLinkAboutMinutes Airport Board - 04/11/2007 REGULAR MEETING MINUTES CORPUS CHRISTI INTERNATIONAL AIRPORT BOARD RECEI®QED 1000 INTERNATIONAL DRIVE V AVIATION ADMINISTRATIVE CONFERENCE ROOM CORPUS CHRISTI FEB 14 2Q1Q INTERNATIONAL CORPUS CHRISTI,TEXAS AIRPORT APRIL 1111 ,2007,3:30 P.M. Cl1Y SE E 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 .lay 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 The meeting was called to order by Vice-chair Montesano at 3:34 p.m. A quorum was present. II. Approval of the minutes for the February 7''special-called meeting of the Airport Board. Vice-chair Montesano called for approval of the meeting minutes for the February 7t` special-called meeting. Director Hamrick asked the minutes be corrected to state that on page 1, item 3a, stating the "hanger will now be over 100,000 square feet," it should be "over 200,000 square feet". He also added that on page 3, mid-page, the minutes read "Board member Lyson,"should be corrected to read`Board member Lyons." The notes on the meeting held on March 10 will not be approved as there was no quorum at that meeting. Vicc-chair Montesano called for a motion. Board member Lyons moved to approve the minutes for February 7th. Board member Feferman seconded and the minutes were approved as corrected. (Vice-chair Montesano introduced the guests in attendance of this meeting. Jenny Ridge with Advantage/Thrifity RAC and Dawn Quiroz with Dollar RAC along with John Gravell with Mercury Air Center were present as guests at this meeting.) (Chair Kane and Board member Dodge arrived at 3:38p.m.) Carpus Christ. iiernationalAirporlBoardAgenda April 11,2007 Page 2 of S DEL Director's Report For the benefit of those Board members who were not present at the March 140'meeting, Director Hamrick turned the floor over to Vice-chair Montesano who gave a brief report on the presentation made by John Gravell, Station Manager, and Chris Kontur, Project Manager, from Mercury Air Center regarding the proposed improvements to their facility. He also informed the Board that this facility's lease will be coming up for renewal. Discussion followed with questions regarding whether the project should go through the bidding process. Board members requested that staff research other airports regarding rates for FBO's at similar sized airports as CCIA. There was also discussion on trying to get an RFQ for this project. Mr. Gravell reported that Atlantic Aviation has made an offer to buy all 22 of Mercury's FBO's. He also stated that this could affect whether the proposed renovations would be undertaken. He suggested that if Mercury's lease is renewed, the lease could be written to include the proposed renovations. Mercury is eager to have the lease renewed in order to proceed with the renovations. Board members discussed whether to go out for bids or to renew Mercury's lease with the inclusion of the proposed renovations. The Asst. City Attorney, Wendy Ogden, stated there are no Iegal requirements to go out for an RFP. Discussion continued on this topic. The Board questioned what direction staff was inclined to take. Director Hamrick stated that initially was seeking an RFP, but Purchasing suggested restricting the field in limiting those that would respond by issuing a RFQ. The City Manager would like to see if there is any interest from outside parties for this facility in order to secure the best possible offer for the Airport. Board members discussed the timing on getting this type of RFP out and back before Mercury's position changes in light of their negotiations with Atlantic Aviation. Discussion continued on the best process in dealing with this project. In response to Director Hamrick's comment on the direction the City would be taking, Mr. Gravell stated that any other interested company would need to have $750,000 to $1 million of investment for initial start-up at this location. Discussion continued on whether additional, outside proposals would be submitted and if it would be lucrative for the Airport to take this course of action. Chair Kane stated that this matter would be brought before the Board for action at next month's meeting. a Corpus Chris. JernationalAirport Board Agenda April II, 2007 Page 3 of 5 a. Budget update Asst. Director Keller reported to the Board that the budget process started in February. She is meeting with Division Managers evaluating where savings can be found. The Airport's budget will be turned into the Budget office this next week and then presented to the Board at next month's meeting. Discussion was heard on the budget process and its adoption by the Board and Council. b. Construction update Director Hamrick reported that chiller replacement project is on-going and the target completion date is April 2&. The new chillers have been installed and they are being phased in so that by the next Board meeting they will be up and running. This project will be completed on schedule and within budget. Director Hamrick reported the R'W 17135 Rehab project is still on target to be completed at the beginning of August. The contractor has brought in additional labor to make up for rain delays and expedite the project. He reported that the contractor is experiencing staffing problems. He informed the Board there was an issue regarding discrepancies in the calculations the engineering firm made on the Ilowable fill on the runway crossings. The calculation difference is over $130,000 and is within the contingency for the project. Discussion was heard on the discrepancy and problems encountered during construction. Board members discussed the enforcement of penalties and the responsibility of miscalculations. Director Hamrick reported the Airport and IBC signage project is within budget. He informed the Board of the delay for the delivery of the China white marble for the Airport entrance sign. The contractor was unable to find the China white marble as called for in the specs. So, he is attempting to find a suitable replacement for the white marble, but staff did not feel it was adequate. Asst. Director Keller stated that the replacement marble, which is to be used on the IBC sign, is at the site if Board members would Iike to stop on their way out to take a look at it. Their may be a delay in obtaining the China white marble. Director Hamrick reported the FAA has approved a$2,818,150.00 amendment to last years grant. This funding will be received within two weeks. He also added that, unofficially, there would be an additional $3.8 million discretionary funding pending approval of the Secretary of Transportation OSG. Director Hamrick reported that Mr. Robert Huegele met with Asst. Director Keller regarding the building of t-hangars on Airport property. He is looking to enter into a Corpus Chris.. lernational Airport Board Agenda April 11,2007 Page 4 of 5 MOU with the Airport for a site near DHL. Asst. Director Keller stated that he was looking at long term leasing. Discussion was heard on the terms of this lease. c. ExpressJet update Director Hamrick reported this venture is moving along well. He also added the Airport purchased 45 seats for the inaugural flight. He invited the Board to be guests on this flight. He stated that the flight would be leaving at 6:30 a.m. and requested they arrive at the Airport at 5:30 a.m. due to the possibility of delays at the TSA checkpoint. With that in mind, Director Hamrick interjected that TSA will be opening a second check point in mid-May. It may be running by the time of this flight but recommended Board members arrive at 5:30 a.m. to avoid a delay. Director Hamrick stated that those on the flight would be mceting with the Austin Mayor and members of Austin's City Council while in Austin. Passengers will also tour the Capitol and then return to the Austin airport for lunch which will be provided by ExpressJet. Upon returning to Corpus Christi, a ribbon cutting celebration will be held at the Airport including the media and mariachis. Director Hamrick requested Board members advise staff as soon as possible if they will be participating in the inaugural flight, Director Hamrick requested comments from the Board on Mercury's offer. Discussion was heard on the timing and terms of this proposal. Consensus of the Board was to have more information regarding rates and charges for FBO's at other airports. Director Hamrick stated that this proposal would be presented to the Board as an action item at next month's meeting. Director Hamrick reported that this would be his last meeting with the Board as he would be retiring on April 27'h to join the Tucson Airport Authority as the Vice President of Operations. He added that he has enjoyed working with this Board and felt they were a group of true professionals. Discussion followed on the changes seen during his time with the Airport. Chair Kane requested further information on the status of Chatauqua Airlines. Mrs. Keller reported that Chatauqua is transitioning with Continental with one flight a day through August. Director Hamrick reported that he had been informed by Chair Kane that Chatauqua's jets are operating out of Gate BB4 in Houston which is located downstairs and a bus is needed to shuttle passengers to the terminal. Chair Kane stated he has been in contact with Continental Corporate offices regarding this issue and he would be working to get better service in Houston that includes the use of jet bridges for boarding. Discussion was heard on this topic from the Board. Director Hamrick stated that he had been in contact with the President and CEO of ExpressJet, James Ream, who had been notified of the Board concerns. He was informed the reason for not using gate B85 or B86 was because they did not have the jet bridge } Corpus Chria.. _l ernational Airport Board Agenda April 11,2007 Page 5 of 5 adapters. Jimmy Conner, ExpressJet's Station Manager, has notified him that the delivery of the adapters has been expedited. IV. Board Business a. Board member term expirations Director Hamrick reported that three Board members, J.C. Ayala, Don Feferman and Jesse Olivares have their terms expiring. Board members Olivares was not present, but Board member Ayala and Feferman asked to be reappointed. Chair Kane stated that these Board members had adequate time to express their interest in reappointment. b. Board absences Chair Kane called for a motion to excuse Board member Olivares from this meeting. Board member Wise moved to excuse Board member Olivares and Board member Lyons seconded and the motion passed. Asst. Director Keller responded to Board member Susser's inquiry to the rates that Mercury currently pays the Airport. She stated that their ground lease rate, which is for the land and improved areas, they are paying $1,600 per month. They also pay a fuel flowage rate of 61/4¢ per gallon of fuel and tie-downs are 33-1/3% of their revenue per month which is $3,300 to $4,000 per month. She estimated the total received monthly is $5,100 to $5,600. She added that on the ground lease rate there was a CPI that could have been implemented during the term of their lease. She added this amount would be the baseline for their lease negotiations. This had not been implemented. Discussion was heard by the Board on this issue. Board member Susser requested that along with research of other airports,he would like to see a proposed RFP for this project. Director Hamrick also added that the Board should also address increasing the fuel flowage fee. Chair Kane asked for this issue to be addressed at the next month's meeting. V. Adjournment As there was no further business, Board member Susser moved to adjourn. Board member Feferman seconded and the motion carried. The meeting adjourned at 5:35 pm.