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HomeMy WebLinkAboutMinutes Airport Board - 12/10/2008 REGULAR MEETING MINUTES CORPUS CHRISTI INTERNATIONAL AIRPORT BO td b 1000 INTERNATIONAL DRIVE f:7*�01 AVIATION BOARD ROOM INTER ATIO AL CORPUS CHRISTI,TEXAS IN'fbRNATIONA[.AIRPORT DECEMBER 10,2008,3:30 P.M. BOARD MEMBERS Don Fcfcrman, Vice-chairman William Dodge, Member Richard Drilling,Member Jesse Olivares,Member Jay Wise,Member Sam Susser,Member George Richard,Member George Fisher,Member AIRPORT& CITY STAFF Fred Segundo,Director of Aviation Enrique Castillo,Asst.Director of Aviation Adelle Ives,Management Assistant Esmcralda Salazar,Management Assistant Roy Rodriguez,Facilities Manager Mario Tapia,Finance&Admin Manager Carl Gross,Operations Manager John Hyland, Chief of Public Safety Gary Williams, Aviation Maint. Manager Elizabeth Hundley, Legal Department I. Call to Order In the absence of Chairman Hicks, the January 14'h Airport Board meeting was called to order by Vice-chair Feferman at 3:30 pm. A quorum was present. II. Approval of the minutes for the November 12,2008,regular meeting of the Airport Board Vice-chair Feferman called for the approval minutes of the November 12th meeting. Board member Susser moved to approve the minutes for the November 120' meeting as written. Board member Fisher seconded and the motion carried. III. Approval of Board member absences for the November 12,2008 Board meeting Vice-chair Feferman called for action on the absence of Board members Olivares, Richard and Drilling from the November 120' meeting. Board member Dodge moved to excuse the afore- mentioned members for their absence from the November meeting. Board member Wise seconded and the motion carried. IV. Public Comment* None. V. Presentation and Discussion-HNTB Engineering(firm profile) Director Segundo advised the Board that the Airport's Engineering contract would be expiring mid- 2009 and presentations from various engineering firms would be held at the Board meetings to familiarize the Board with those companies that would be participating in the RFQ selection process for Airport contract engineering. Asst. Director Castillo introduced the HNTB staff, Mark Williams, Dent McLemore and David Mason to the Board. Mr. Williams, Associate Vice-President at HNTB, began by introducing himself and stating the he oversees the Central Division Aviation Practices for HNTB which encompasses the area between the Rocky Mountains and the Mississippi River, including all of Nebraska through Texas. He also introduced Mr. McLemore who oversees the Aviation Practices in Louisiana and Texas specializing in Aviation Planning; and Mr. Mason, Aviation Architect, who oversees Aviation Practices in the Dallas office. Corpus Christi International Airport Board Agenda December 10,2008 Page 2 of 3 Mr. Williams continued by stating he would be addressing the three main components of HNTB's Aviation Service Line: Planning, Architecture and Engineering. He continued by stating the differentiation between HNTB and other firms is that they provide these three services extensively with over 300 personnel as well as working together to develop project budgets through to the design phase and completion of the project with special emphasis on the integration of all aspects of service. Mr. McLemore and Mason also gave their professional backgrounds and experience at HNTB. Mr. McLemore added that with the economy hitting the Airlines' bottom line and airport's need to not increase PFCs,his company has worked with other airports in developing non-aeronautical revenue. Mr. Mason covered specific issues at CCIA such as the FIS area and the expansion of the Parking Lot. He felt that these two areas development could have a"ripple"effect on Airport revenues. Mr. Williams concluded the presentation by thanking the Board for the opportunity to inform them on the services their organization offers. The floor was opened to questions by the Board. Vice- chair Fefcrman questioned what their involvement would be in the QTA project. Mr. Williams stated that, if selected,HNTB would be the"owner's representative" for all Airport projects. They would be involved in the initial planning along with the design,plans and specifications. Board member Susser questioned what HNTB offers in assisting in increasing non-aeronautical revenues. Mr. Williams felt that by looking at development of airport properties as well as reviewing current leases that there is a potential for possible revenues. Mr. Mason felt that CCIA could look at this time of economic slowdown to prepare and plan for when the economy rebounds. Mr. Williams concluded by stating that HNTB would be able to bring a fresh prospective on issues at the Airport. VI. Discussion of Monthly Reports a. Parking Revenue Report Director Segundo began his report by stating that the holiday season did not bring the expected revenues here locally or nationwide. He stated that revenues were down S26,000 from October, 2008. He added that staff has begun extensive marketing as well as working closely with the Airlines. He pointed out the trends for previous years and noted that the trends are the same. b. General Aviation Report(GAR) Director Segundo reported that enplanements are down 7% and he felt that this was not just here locally,but a nationwide problem. He felt that CCIA's business travelers will continue to keep numbers steady. Vice-chair Feferman asked that Director Segundo brief the Board on the relationship between enplanements and hotel room bookings. Director Segundo stated that in McAllen it was determined that over 80% of hotel room booked were booked by airport passengers using the local airport. If that could be determined here in Corpus Christ, it would assist in getting the CVB and the Chamber to use funds to promote flying through CCIA. He has discussed this with Keith Arnold and he was agreeable to discuss this issue. This possible funding would assist in keeping Airport funds for operation. Corpus Christi International Airport Board Agenda December 10, 2008 Page 3 of S c. Financial Report Director Segundo informed the Board that while revenues are down, Staff is working relentlessly in keeping operating costs down. He reported that with one-thud of year gone, Staff has kept operating costs at 31%for expenditures and 33%on revenues. VII. Discussion of Director's Report a. Status update of Airfield Projects ➢ West GA Apron &Drainage Phase V Construction Director Segundo reported that this project is almost complete and in the process of closing down. b. Status update of Facility Projects ➢ FIS Redesign Director Segundo reported that there has been no change in this project. He added that this project would be assigned to the new engineer upon his hire. This is not a priority as the funding is not available at this time,but he would like to have the plans and specs ready once funding is found. D Terminal Roof Replacement Director Segundo stated that this project is ready for an RFP. He fc[t this would be completed before the next hurricane season. c. Status update of Business Development T-hangars Director Segundo reported that since the economy has slowed, the party interested in developing T-hangars has put the project on hold. ➢ Rental Car Lease/QTA Director Segundo reported that the questions for the RAC QTA facility have been completed and staff is waiting on a response from Advantage RAC to proceed. ➢ Advantage Rent-a-Car Update Director Segundo reported that approximately three weeks ago Advantage RAC closed their counter at the Airport. He added that Advantage has not contacted Airport staff regarding their situation. He stated that letters would be sent to Advantage in order to get a formal response from them regarding their situation. Asst. Director Castillo informed the Board on the events that have transpired at the Airport with respect to Advantage. Director Segundo stated that Advantage is still using their staging area and they are current on their payments. He added that he does not have any further information -on this situation. He is aware of several rumors regarding Advantage, specifically that they have filed for bankruptcy. He advised the Board that they have closed their offices in the valley as well as the Corpus Christi location. The lease is being reviewed to ensure their departure is in compliance. D DAL Update Director Segundo reported that DHL will be no longer be providing service within the continental United States. He has been in contact with their corporate office who advised him that they would continue to operate on a small scale. He is hopeful to fill the space with a freight-forwarder if necessary. He is considering this only if DHL pulls out entirely. M Corpus Christi International Airport Board Agenda December 14 2408 Page 4 of 5 d. Status update on Air Service Development ➢ AUegiant(Aladila/Mexicana Packages Director Segundo reported that Aladia has ceased operations for approximately six months. This is due to the slow economy. e. Status update on Marketing and Promotion ➢ Status on PR&Marketing position selection Director Segundo reported that interviews have been held to fill the vacant PR & Marketing position. He is hopeful the position will be filled soon. He added that interviews have also been held for the Airport Engineer and a possible candidate has been selected. ➢ Recycling Program Director Segundo reported that the Recycling Program at the Airport is on track and a ribbon-cutting event will be held. He advised the Board they would be receiving invitations to attend this event. f. Airport Council Agenda Items Update ➢ Taxiway Rehab Change Orders Director Segundo reported that there is Change Order for the Drainage Ditch which is being handled by the Engineering Department. This item is scheduled to go before City Council this month. Board member Susser questioned whether it is advisable to hire a PR &Mkt person and in-house engineer when revenues are down. Director Segundo stated that the engineer position is vital when it comes to receiving FAA discretionary monies. Board member Susser questioned whether the contract engineering company could take on this duty. Director Segundo explained that the in-house engineer has more day-to-day contact with projects necessary to maintain completion within budget and target dates. This engineer also reviews plans and specs for projects produced by outside engineering firms for oversight,therefore,keeping costly change orders at a minimum. Director Segundo stated that filling the PR&Mkt position is crucial to promote services and continue to have people utilize the Airport. He felt that it was very vital that this person continue to push the message to utilize the Airport. He added that during his time at the Airport, he has increased the budget for marketing and promotions because he feels that it is necessary to have a sustained message. He also stated that a commercial is in development for a new marketing campaign which this person will oversee. VIII. Discussion regarding possible local economic opportunities related to new tourism venues through which the Corpus Christi International Airport could indirectly benefit. Director Segundo introduced Mr. Rudy Garza, Director of Governmental Affairs, who would give the Board a briefing on this issue. Board member Fisher questioned Mr. Garza on what options would be available to have a gaming facility in the Corpus Christi area. He felt that this would be beneficial for the Corpus Christi economy as has been seen in Mississippi and Louisiana. Corpus Christi International Airport Board Agenda December 10, 2008 Page 5 of 5 Mr. Garza responded that in every legislative session a gaming bill is introduced. He continued by stated that a gaming bill for the entire state of Texas would be introduced next session by Senator Whitmire from Houston; however, Senator Jane Nelson has vowed to filibuster the bill. He added that it would be likely that a gaming bill could pass the Senate,but it would be done in small phases with a very slow phase-in. He felt that Galveston and South Padre could be considered for gaming zones. With vast sums of money leaving Texas,he felt that there would be more pressure for Texas to accept gaming in certain areas. He stated that if and when a bill passes the Senate, he will work with the Board to present to City Council a recommendation for Corpus Christi to be considered as a gaming zone. TX. Identify items to be placed on next agenda Director Segundo stated that Graver Engineering would be making a formal presentation to the Board on their company overview at the next meeting. Board member Olivares asked that staff review other airports to determine the top ten revenue generators which could possibly be utilized at CCLA. . �...�...Adjournment .. .......................................... _ournment there was not further business, Vice-chair Feferman called for a motion to adjourn. Board member Drilling moved to adjourn and Board member Richard seconded. The meeting adjourned at 4:57 p.m.