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HomeMy WebLinkAboutMinutes Airport Board - 08/08/2007 3GULAR MEETING MINUTES CORPUS ChzciSTI INTERNATIONAL AIRPORT .A)ARD DRECEIVED 1000 IN'T'ERNATIONAL DRIVE AVIATION ADM NISTRATIVE CONFERENCE ROOM CORPUS CHRISTI,TEXAS INTERN TI NAL AUGUST 8�,2007 3:30 P.M.ATERidATION T AIRPORT BOARD MEMBERS Jerry Kane, Chairman Don Feferman,Member Frank"Rocco"Montesano,Vice-Chair William Dodge,Member I.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 Ron Massey, Interim Director of Aviation Debra Keller, Asst. Director of Aviation Adelle Ives,Management Assistant 1. Call to Order The meeting was called to order by Chair Kane at 3:34 p.m. A quorum was present. Il. Approval of the minutes for the July 11th regular meeting of the Airport Board. Chair Kane called for a motion to approve the minutes of July I Ph. Board member Wise moved to approve the minutes as read. Board member Feferman seconded and the minutes were approved. III. Action Item Motion, to recommend a Resolution authorizing the City Manager or designee to execute a one-year lease option agreement with the U.S. Government for property located at the Corpus Christi International Airport Chair Kane requested Interim Airport Director, Ron Massey give some background information on this action item. Mr. Massey reported that GSA is requesting to select a contractor after announcing solicitations for proposals. GSA wants to have a retainer on the property while they go through the process of selecting a developer who would actually sign the lease that GSA and the City negotiate. He felt that GSA may hold the lease in a binder until they can establish how they plan on executing this project. When GSA asked to purchase the property, we informed them that the City would not sell the property, only lease it. GSA originally stated they would sign the lease but that has changed and they will be assigning the lease to the contractor. Board member Feferman questioned whether this lease would be assignable by the government. Mr. Massey stated that is what is being requested. This option is to allow them to work out the details and then move forward. A draft lease is being worked out to include the total terms of the lease. Mrs. Keller, Asst. Director, clarified by stating that this Iease is assignable with CCIA having the right of approval. She added that the lease will be for 15 acres. Mr. Massey added that when this is presented to City Council it will be an opportunity to inform them that this is CCIA's strategy to increase revenue with more leases on Airport property. He added that this lease is a way to bring light to the potential use of Airport property for others. He reported that the City's EOC (Emergency Operations Center) staff was touring the Airport as a potential secondary EOC site should there be any problems at Corpus Christ. 6ational Airport Board Agenda August 8,2007 Page 2 of 6 their current locations. He added that US Customs and the Port of Corpus Christi has discussed jointly manning an operations center on Airport property making it a Homeland Security site rather than just having the Coast Guard on property. Discussion was heard on the multiple benefits of having several governmental agencies utilizing Airport property. Vice-chair Montesano moved to approve this item. Board member Ayala seconded and the motion passed. Director's Report a. General updates Chair Kane reported that he had met with Mr. Thomas regarding ExpressJet's termination of services at CCIA. He stated that Mr. Thomas reported to him the airline was experiencing a revenue loss of$300,000. Mrs. Keller interjected September 30a'would be the last day of operation for ExpressJet at CCIA. Chair Kane stated that Mr. Thomas had reported a robust business in all other markets with the exception of Corpus Christi. Chair Kane expressed his opinion to Mr. Thomas that ExpressJet had not given Corpus Christi a sufficient length of time to develop the market. Chair Kane added that he felt that ExpressJet had not provided the best service possible. He cited several bad experiences at the airport and several cancelled flights as an example. Board member Lyons felt that the Airport should present to the general public the facts that show that ExpressJet failed after many suggestions by staff and the Board to improve their passenger loads of which they did not acknowledge. He felt that this would be beneficial should another opportunity arise for new air service development. Board member Feferman added that this service would not be successful with only one flight and Ontario was not a popular market. Chair Kane stated he was aware of individuals that would manipulate ExpressJet's schedule to their benefit by going through other markets,other than Ontario, via the Austin route. He added that it was not a convenient way of booking flights,but it did serve their purpose. He also added that he would be willing to set up meetings in Austin for ExpressJet with one of the largest travel agency in Texas in order to assist the company of continuing service to Corpus Christi. He had offered to do this when ExpressJet had initially started service in Corpus Christi, but his offer had not been accepted. He also added that, locally, efforts to make the community aware of the service and its benefits would be another strategy. Vice-chair Montesano concurred with Board member Feferman's comments that it was not that much of a time savings to fly to Austin in light of the length of time spent flying in comparison to driving. He felt that the short-term destinations were not beneficial if there is no follow-through service. Mrs. Keller felt that this service would work if ExpressJet would have more connectivity and advertise the locations they fly. She mentioned, as an example, the billboard at the end of International Drive which advertises ExpressJet service but it does not mention the destinations to where they fly. She stated that she had expressed to ExpressJet this service would need to be on-going for a full year to establish the market. She did not feel that f Corpus Christ. brnational Airport Board Agenda August 8,2007 Page 3 of 6 three months was enough to test a market. Vice-chair Montesano still felt there was a need to have better destinations connected to the flight service to Austin. Mrs. Keller felt that the Austin flight would work if ExpressJet made Austin a hub. She added that they are successful at airports where there is a very large community to pull from, such as Austin and LA. There are several flights connecting from Austin and the population is larger. Chair Kane felt that if they would agree to do this for another three months, the service might succeed. Mrs. Keller stated that the Airport offered $40,000 in advertising funds to advertise an Albuquerque connecting flight through Austin, but they were unwilling to make this change due to the complexity in changing their baggage handling. Board member Lyons questioned whether the traveling public was aware of these flights. He felt that a great deal of public relations was necessary to get the message out. He knew of several individuals who were unaware of the direct flights to Austin. Board member Wise questioned their response to the offer of $40,000 to advertise the connecting flight to Albuquerque. Mrs. Keller stated the Airport was willing to give 540,000 seed money to advertise the Albuquerque flight,but they were not interested. She added that Corpus Christi is the only market that was allowed to advertising non-stop service because there was only one destination at this Airport. Vicc-chair Montesano interjected that the model was destined to fail with only one destination. Mrs. Keller stated that she bad expressed to them that more connectivity was necessary and that Albuquerque was a flight that would take the most minimal change to make the connections work. ExpressJet responded that they would not make that connecting flight to Albuquerque until they processed baggage differently. Board member Wise stated the Board should consider the negative impact of this venture and the Board's position in light of the developments of this current situation when another air service development opportunity arises. Board member Feferman responded that he had considered this venture difficult to succeed, but he had confidence that ExpressJet had done ample research with market studies that would prove this to be successful. Mrs. Keller added that CCIA gave them 100%total support to be successful and ExpressJet was very appreciative, but CCIA can only go so far and Express7et has to do the rest in making this a successful venture. Board member Ayala added in his discussions with Kenneth Evans with ExpressJet at the initial air service event, Mr. Evans stated his surprise at the amount of interest in flights to Las Vegas. Board member Ayala questioned if they had heard such positive interest in flights to Las Vegas, why had they not taken action in development. Chair Kane felt that they are very thin,non-airline. Chair Kane requested that discussion on increasing seats to Corpus Christi be put on the agenda for September. Mrs. Keller stated that from the GAR, American Airlines is at 89% load factors. She added that she has heard that travelers are unable to fly back into Corpus Christi on American because they are overbooking flights. She added that Continental Express is at 86% and Southwest at 71% load factors. Chair Kane felt that this is the best Corpus Chris►. 6ational Airport Board Agenda August 8,2007 Page 4 of G that Southwest has ever done. Mrs. Keller stated July is a busy month for air travel. She added that Southwest has added more seats and their loads have continued to increase. Discussion continued on this topic. Board member Ayala questioned the destination of the charter flights to Nevada. Mrs. Keller stated that the flights go into Laughlin. She added that Allegiant Airlines flies directly to Las Vegas. Mr. Massey reported on the status of the WiFi services to be provided to the Airport. He stated that the services requested by the Airport were to be identified and reported to Earthlink in order to determine the cost involved in providing them. He added that the Airport will be making 5% of the revenue earned by Earthlink services at utilized by passengers at CCIA. Mario Tapia, Finance Manager, reported that the Airport is requesting service at outside locations such as the Maintenance Hangar and Game Time Restaurant for FIDS display. Facilities Manager,Roy Rodriguez,stated that it was not a problem of getting a signal, but now CCiA needs to pay for a subscription. Board member Ayala stated that Earthlink's customer scrvicc/tech support was not very good. Chair Kane felt that Earthlink would fail unless they can improve their service considerably. Mr. Massey reported that Earthlink has not yet fielded their services. Staff is working with Earthlink in getting the best, cost effective service they can provide now or offer in the future. Board member Fefcnnan questioned whether Airport customers arc going to be charged for use of WiFi at the Airport. Mr. Massey stated that kiosks would be provided within the terminal, but they would have a time limit on their use. He stated that if you are a customer of Earthlink, you would be able to use the services at the Airport on your subscription. Mrs. Keller stated that she is currently looking into providing this service to Sky High Points participants. Mr. Massey reported that construction.on Runway 17/35 has been delayed and turned over the report to Mr. Rodriguez. Mr.Rodriguez stated that the Runway Flight Check has been rescheduled until approximately September I&. The dirt work associated with the construction has been delayed due to the weather. The soil is too moist. All other aspects of the project are on schedule with the added exception of the painting of the runway stripping which has been delayed a week and a half due to delays on other projects within Texas of the painting contractor. Mr. Massey reported on the delay of the installation of the Airport Entrance Sign. Mr. Rodriguez reported that a meeting will be held with the contractor and City Engineering staff in order to get this project completed. He was not pleased with the color of the marble and is requesting a letter certifying that the marble used is what was specified in the contract. The lighting is in, but due to the weather, this will need to be reworked. Board member Lyons felt that in the meantime, the area needed to be kept tidy. Mr. Rodriguez stated that the contractor had cleaned up the area,but as they began working on the project again,the equipment was left on-site again. He is hopeful that the next meeting on Monday will resolve all the issues of concern on this project. ' Corpus Chris. iamational Airport Board Agenda August 8,2007 Page S of 6 Board member Lyons asked that the Maintenance Hangar be cleaned up in order to improve it's appearance. Mr. Rodriguez stated he would look at the location, but he stated that area has been cleaned up considerably. Mr. Massey commented regarding the Entrance Sign. He felt that the contract administrator would move to formally contact the bonding company to have them get the contractor to complete the project. Mr. Massey had Carl Gross, Operations Manager, report that from July 23th through July 25th, the FAA conducted the Annual Certification Inspection for CCIA. Mr. Bill Mitchell with the FAA was on site reviewing training records, daily paperwork and conducting both day and night time inspections. He made minor recommendations on the training program, but overall, the FAA reported that the Airport is operating in compliance with FAA regulations and the Airport Certification Manual. He credited the Maintenance staff and Public Safety Officers efforts in making this inspection a success. Mr. Massey added that virtually everyone on staff was instrumental in the success of this inspection. Mr. Massey reported that the Airport has moved forward and hired an AE to give an estimate on the demolition of the property in anticipation that Semtech consider buying out their lease. Mr. Massey reported that recruitment for Airport Director is ongoing. He stated that the recruiting company handling the hiring for this position held a conference call with City Manager, Skip Noe, to identify viable candidates. Mrs. Keller reported that there are Ifi viable candidates and several of them are from Texas. Mrs.Keller reported that staff is waiting on an acceptance of Smarte Carte lease to extend the lease for an additional 5 years upon upgrading their equipment. Mrs. Keller reported there would be Sky Cap Recognition event on August 28h. The five Sky Caps currently work at the Airport will receive commendations at City Council along with a proclamation making August 28th , Sky Cap Appreciation Day. She added that these individuals have been volunteering a combined total of 80 years. She also reported that a reception and luncheon will be held at the Airport directly following the City Council recognition. She mentioned that this service is usually provided by the airlines and she felt that once these individuals cease to provide this service, there will not be anyone to replace them. She stated that the airlines are currently supplementing this service in these individuals' absence, but it is difficult in getting people to staff these positions. She expressed their dedication was invaluable to the Airport and the traveling public and asked the Board to attend this event to honor these individuals. She also added that Amy will be working on putting together gift baskets for these individuals and would appreciate any contributions the Board members would be willing to make. Mrs. Keller reported that staff is working on gaining a Port of Entry designation for the Airport. She and Mr. Massey have met with Edith Clark, Port Director, to work towards achieving this designation. She felt that this would be a long process but would be a benefit should the need arise for the Airport to be a Port of Entry. Board member Feferman questioned what this designation meant. Mrs.Keller felt that as a Port of Entry, 9 11 Corpus Chria, Lma[ioaal Airport Board Agenda August 8,2007 Page 6 of 6 regularly scheduled cargo will guarantee that US Customs provides labor and staff to sustain regular-standing operation of the inspection process for international deliveries. She added that this designation requires a Congressional Act and can take up to two years to achieve. Board member Lyons asked that Mrs. Keller be available to meet with the incoming Director to pass on valuable information on the Airport's operations. Mrs. Keller stated that the candidates will be touring the Airport before interviewing with the City Manager. She also stated that the September Board meeting will be her last official meeting as an employee of the City of Corpus Christi. She added that she would be willing to offer her services as a contract employee to facilitate a smooth transition with the incoming Director. Mrs. Keller updated that Board on the Sky High Point Program by stating that currently there are 658 registered participants and issued 597 rewards and staff is currently looking to obtain more awards for the program. She asked the Board to consider participating in this program as possible sponsors in order to insure this program succeeds in getting the community to fly from Corpus Christi. Mrs. Keller also reported on the Terminal Business Center. She stated that the WiFi services have been established for this center and a contract has been submitted to the Legal Department. She is hoping to have the center up and running within the next 30 to 60 days. Chair Kane reported that Board member Susser had been injured and was hospitalized. He asked that his absence be excused. He added that Board member Susser had returned to Corpus Christi specifically to attend today's Board meeting. Mr. Massey requested the Board input on the continuation of sending the Airport Weekly and Monthly Activity Reports to the members. Staff would like to keep the Board informed but did not want to inundate the members with too many emails. Mr. Massey suggested that the Board only receive the Monthly Activity Report; and, in combination with the mid-month Board meeting, the Board would be obtaining an update twice a month. Chair Kane and Board member Lyons asked to be kept on the address list for the Weekly Activity Report. V. Board Business a. Board absences Action on Board member Susser, Olivares and Whitmore's absence will be addressed at the September meeting as an Action Item. V' . Adjournment As there was no further business, Board member Feferman moved to adjourn the meeting. Vice-chair Montesano seconded and the meeting was adjourned at 4:40 p.m.