HomeMy WebLinkAboutMinutes Airport Board - 11/14/2007 )REGULAR MEETING MINUTES
CORPUS CHRISTI INTERNATIONAL AIRPORT B
1000 INTERNATIONAL DRIVE EIVED
AVIATION BOARD ROOM
CORPUS CHRISTI,TEXAS FEB 10 2010
CORPYIS l
YNTRRNATIONA L NOVEMBER 14, 2007,2:30 P.M.
TIONA
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
Fred Segundo, Director of Aviation Adelle Ives,Management Assistant
Roy Rodriguez,Facilities Manager Mario Tapia,Finance&Admin Manager
Carl Gross, Operations Manager John Hyland,Chief of Public Safety
I. Call to Order
The meeting was called to order by Chair Kane at 2:34 p.m. A quorum was present.
II. Approval of the minutes for the August 8th,2007, regular meeting of the Airport Board.
Chair Kane called for approval of the minutes of the August Board meeting. Vice-Chair
Montesano moved to approve the minutes as read. Board member Susser seconded and the motion
carried.
III. Approval of Board member absences
Chair Kane called for excusing Board members Whitmore, Olivares and Susser from the August
2007 Airport Board meeting. Vice-Chair Montesano moved to excuse Board members Whitmore,
Olivams and Susser. Board member Feferman seconded and the motion carried.
IV. Introduction of new Director of Aviation,Fred Segundo, by City Manager, Skip Noe
City Manager, Skip Noe, introduced Mr. Fred Segundo, the new Direction of Aviation, to the
Board. Mr. Segundo gave a brief history of his experience and education along with his goals for
the Airport under his direction.
Board members welcomed Director Segundo to the Airport.
(Chair Kane changed the order of business to allow Keith Arnold, with the CVB, to address the Board under
Director's Report, General Update.)
Mr. Keith Arnold, with the Convention Visitor's Bureau, addressed the Airport Board to seek their
support to attract the US Bowling Congress in choosing Corpus Christi to host their event in 2011.
He reported that Corpus Christ is the second most attended bowling tournament within the United
States. The tournament selection committee for the USBC felt that Corpus Christi would have been
in first place had there been sufficient flights at the beginning of the tournament. He felt that it was
very important to have the Airport Board support the CVB's efforts in influencing the airlines in
increasing flights throughout the tournament. He added the Mayor asked he report to the Board
that he has already begun communicating with American. Airlines regarding the bowling
tournament. He also stated the Mayor would like to join efforts with the Board in increasing nights.
On behalf of the CVB,Mr.Arnold requested a letter from the Airport Board Chair,with the support
Corpus(,nristi International Airport Board Agenda
November 14, 2007
Page 1 of 5
of the entire Board, to the Airlines asking to secure additional flights from February, 2011 to July,
2011 for this tournament.
Mr. Arnold reminded the Board there were 67,000 bowlers attending the last bowling tournament
held in Corpus Christi. Chair Kane stated that the consensus of the Board was to support efforts to
increase flights for this tournament. He also stated that he would generate a letter stating the
Board's support of these efforts.
Chair Kane and Board member Susser had questions for Mr. Arnold regarding statistics from the
Baton Rouge bowling tournament. Mr. Arnold informed the Board that a new service was started
called the Bowling Ball Express which ships bowling balls to tournaments instead of having the
bowlers carry them on their flights. This service will be very beneficial for the airlines. Mr.
Arnold concluded by stating that a formal presentation to the Bowling Congress would be done on
November 30`h in Milwaukee,Wisconsin.
V. Action Item:
a. Motion to recommend that the City Council authorize the City Manager or designee to execute
a leasehold termination agreement with Semtech Corpus Christi Corporation for property
located at the Corpus Christi international Airport
Mario Tapia, Finance Manager, reported that the Semtech Corp., on the first of October, 2007,
made an offer of$200,000 to terminate the .leasehold agreement along with responsibility of
demolition of the building and environmental clean-up. Upon conferring with City staff, a
counter-offer proposal was presented to Semteeh which included $225,000 for the lease buy-
out,payment of CEP adjustment for$36,000 and the responsibility to cleanup of the area around
the electrical transformers. He reported the Airport would benefit from this termination in that
the contract terminates in 2010; and the revenue generated from the lease, as it stands at this
point in time, would be $518,000. At that time, the responsibility of the building demolition
and environmental clean-up would revert back to the Airport. Along with this information and
including estimates on the cost of demolition and environmental clean-up, staff recommends
the Board approve this item to terminate this lease.
Director Segundo added that it would be a financially beneficial due to the cost of
cnvironmental clean-up. Vice-Chair Montesano questioned whether the Airport was ever
responsible for environmental clean-up on this property. He felt that Semtech would have been
responsible for the environmental clean-up whenever the contract expired. Mr. Tapia explained
that the original 30-year agreement which consisted of three 10-year terms. The agreement
started in 1991 and in 2001, Semtech was given the opportunity to opt out. He added that if
they had taken the option, the Airport would have assumed the responsibility of environmental
clean-up.
Board member Lyons questioned what the time frame involved in completing the demolition
and environmental clean-up. Mr. Tapia responded that this would take from 30 to 90 days upon
receipt of payment and including the TCBQ's inspection. Board member Lyons also
questioned whether there were any stipulations for extended delay by TCEQ for remediation.
Mr. Tapia responded that there were no stipulations of this type. He added that based on
concerns regarding the length of time to complete the negotiations of this lease, the Airport's
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Corpus Gnristi International Airport Board Agenda
November I4,2007
Page 3 of 5
proposed agreement includes a stipulation should there be a delay beyond another month,
Semtech would continue to make monthly payments which are$14,000 per month.
Roy Rodriguez, Facilities Manager, interjected that there currently is an environmental
assessment on this site. He reported that the only area that had contamination of chromium
products was an area of 14'X167 area by the transformers. They are willing to clean-up the area
and the only other remediation involved with this property would be the asbestos abatement
within the building. Mr. Tapia also added that costs of asbestos remediation could potentially
be$1 million.
Board member Susser questioned whether staff had researched Semtech's financial stability.
Mr. Tapia reported he would provide that information to the Board at the next meeting.
Board member Wise moved to approve this item. Board member Lyons seconded and the
motion carried.
V 1. Financial Report Presentation
Mr. Tapia reported on the year-end financials for the Airport. He reported that the Airport
ended the year with an increase of $335,000. The revenues were higher in the Oil & Gas
accounts and the Parking Revenue account. He added that revenue at the Parking Lot continues
to increase.
Mr.Tapia continued by reporting that$8.4 million in total revenues compared to $8.1 million in
total expenditures. He reviewed each Cost Center including Administration costs which were
over $99,000 due primarily to cost involved in marketing Express7et in their inaugural launch.
Mr. Tapia also added that this increase also included environmental assessments which were
not anticipated.
Mr. Tapia also reported that under Building Maintenance, expenses were $150,000 less due
primarily to the new chillers. He added that since the end of last fiscal, the Airport has been
operating on only one chiller because of their high efficiency.
Mr. Tapia began reporting on the Airport revenues. He stated that Oil and Gas revenues were
less than anticipated. He added that the next budget estimated less in revenue as it is unclear
what EOG will be undertaking.
Chair Kane questioned whether cellular repeaters were on Airport property. Mr. Rodriguez
responded that Verizon has the only repeater on Airport property.
Mr. Tapia continued by reporting that this new fiscal shows that the Airport is at 26% of the
revcnuc budgeted and 23%of the expenditures budgeted. This figure should reflect a quarter of
expenditures budgeted which he felt was on track.
Board member Susser questioned what the status of the FBO rental adjustments. Mr. Tapia
responded that this was completed and he would provide that information to the Board. Board
member Susser also questioned the status of negotiations with Mercury. Mr. Tapia responded
that Mercury has not responded and their legal staff is reviewing the issue. Board member
Susser suggested that the Airport should move forward on putting out an RFP. Mr. Tapia
Corpus Ln isti 1'ntemational Airport Board Agenda
November 14, 2007
Page 4 of 5
deferred to Director Segundo who stated that based upon the history regarding this matter, it
would be a good move for the Airport to proceed with an RFP. He also added that he would
look into this matter. He gave the Board the manner in which he would be handling all leases
and in changes of the lease terms and conditions.
Mr. Tapia reported on the increases of the farm leases located on Airport property. He reported
these leases generate approximately$55,000. He continued to report that the farmers have been
paying $25 per acre which is below market rate. For this reason, the Airport informed the
farmers that a rate change of$50 per acre would be made. Director Segundo interjected that
future leases would include guidelines to the type of crops that could be farmed on these
properties.
VII. Proposed CIP Budget Presentation
Mr. Tapia reported on the CIP referring to a PowerPoint presentation to the Board. He began
by explaining the City's CIP process begins today with a meeting of the Planning Commission
with the final approval of the City's CEP plan by City Council in mid-December. This
presentation would give an overview of the Airport's CIP funding, project and long-range
projects.
Mr. Tapia stated that the City's CIP program consists of a 10 year plan. The first, second and
third years are the short-range plan and the fourth through tenth years are the long-range plan.
The short-range should be fully funded or at least funding should be identified which the
Airport has accomplished. The Airport CIP short-range projects are drainage, taxiway and
lighting rehab, ARFF (Fire Station), building and apron modifications. He reported that the
long-range CIP projects, which were identified on the Master Plan, include the acquisition of a
noise buffer area consisting of 425 acres south and east of the Airport, the Runway 13131
extension from 7,500 to 9,000 feet, perimeter road project, land acquisition for the parallel
runway, replacement of the covered parking cover due to wear, replacement of ARFF (Fire
Station) equipment,Runway 17135 extension, airfield pavement rehabilitation, expansion of the
long-term parking,and Airport perimeter fence including a concrete base.
Mr. Tapia continued by detailing each categories projects including funding amounts. General
discussion and questions were heard by the Board.
VIII. Director's Report
a. Construction Update
Director Segundo reported he would have a full construction update at the December.
b. General Updates
Chair Kane called for concerted efforts by the Board to increase flights. Board member Susser
felt that flights for the west coast should be considered.
Director Segundo stated that scheduling by the airlines is usually done 90 days out. With the
smaller lag time regarding scheduling,there would be more opportunities to have them change
schedules to possibly increase flights.
Vice-Chair Montesano questioned the status of the Coast Guard project. Mr. Tapia reported
that the Coast Guard are coordinating with FAA regarding the environmental assessment. Mr.
Corpus Lnristi International Airport Board Agenda
November 14,2007
Page S of 5
Rodriguez interjected that he has been in contact with the Coast Guard who stated they are still
moving on this project and they are joining with Customs Border Protection on this effort.
They are working on the environmental assessment requirements with the FAA.
rx. Adjournment
As there was no further business, Chair Kane call to adjourn the meeting. Board member Wise
moved to adjourn and Board member Lyons seconded. The motion passed and the meeting
adjourned at 3:44 p.m.