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HomeMy WebLinkAboutMinutes Airport Board - 03/11/2009 REGULAR MEETING MINUTES CORPUS CHRISTI INTERNATIONAL AIRPORT BO 1000 INTERNATIONAL DRIVE AVIATION BOARD ROOM FEB 1 0 201CORPUSCHRISTI CORPUS CHRISTI, TEXAS INTERNATIONAL A I R P O R T MARCH 11 m, 3:30 P.M. ECRETARY'S O BOARD MEMBERS Ed Hicks, Sr., Chairman Don Feferman, Vice-chairman William Dodge, Member Sam Susser, Member J.C. Ayala, Member George Richard, Member George Fisher, Member CITY STAFF Fred Segundo, Director of Aviation Enrique Castillo, Asst. Director of Aviation Adelle Ives, Management Assistant Esmeralda Salazar, Management Assistant Roy Rodriguez, Facilities Manager Mario Tapia, Finance &Admin Manager Carl Gross, Operations Manager John Hyland, Chief of Public Safety Angela Rowe, PR & Mkt. Coordinator Gary Williams, Aviation Maint. Manager Elizabeth Hundley, Legal Dept. I. Call to Order The meeting was called to order by Chairman Hicks at 3:34 p.m. A quorum was present. 11. Approval of the minutes for the January 14th, 2009, regular meeting of the Airport Board Chairman Hicks called for approval of the minutes for the January 14th, 2009, regular meeting of the Airport Board. Board member Susser moved to approve the minutes as written and Board member Fisher seconded. The motion unanimously passed. III. Approval of Board member absences for the January 10, 2009 Board meeting Chairman Hicks called for a motion to excuse members absent from the January 14th board meeting. Vice-chairman Feferman moved to excuse Board members Ayala, Olivares, Fisher and Drilling. Board member Richard seconded and the motion carried. IV. Public Comment* None. V. Presentation and Discussion —Jacobs Engineering (firm profile) Director Segundo introduced Jacobs Engineering staff to the Board as they began their company's presentation. Raoul Portillo, Regional Manager of Business Development, Jeff Toner, Aviation Practice Manager, and Sheri Hollaway, Aviation Project Manager in Texas began their presentation to the Board by introducing themselves and giving some brief background information regarding their experience and professional qualifications. They provided the Board with n Corpus Christi International Airport Board Agenda March 11, 2009 Page 2 of 5 an informative brochure and continued by giving extensive Information regarding Jacobs Engineering's with respect to services that could be of benefit to the development expected by the Corpus Christi International Airport. Discussion and questions were heard regarding Jacobs Engineering's experience and projects. 11 11'. Discussion of the status of current and future tenant agreements Director Segundo informed the Board that this item would become a permanent item on the Board's agendas in the future in order to best discuss the agreement currently in the works. Director Segundo also stated that Asst. Director Castillo would be discussing the delays in the RFPs for the Rental Car Agencies. He continued to inform the Board on the care staff has been taking with respect to current tenants making contact with staff to discuss issues regarding the on-going RFPs. He also added that the Airline Use and Lease Agreements negotiations are on schedule with the timeline submitted to the Board earlier. Asst. Director Castillo began by stating the delay in the Rental Car Agency RFP was due to the extensive amount of questions that were submitted by the Rental Car Agencies; the filing for bankruptcy by Advantage Rental Car Agency which caused a complete re-write of the responses of the submitted questions to take into account Advantage Rental Car Agency's withdrawal in the bidding process. These three factors delayed the submittal of Addendum No. 4 of the RFP which Legal is currently drafting for submittal to him for review and submittal to Purchasing for final review and approval by the end of the month or the first week of April, at the latest. Asst. Director Castillo felt that all bidders in the Rental Car Agency RFP should be located on Airport property with the understanding that dual-branding will be allowed. He added that Addendum No. 4 of the RAC RFP will be issued to the agencies by the beginning of April. The agencies have two weeks to respond once it is issued. The bids will be evaluated and tabulated including the Minimum Annual Guarantees and he expected that a packet could be brought to Council the first week in May for their approval. He estimated that once it is approved by Council an executed agreement could be completed by June. Board member Susser questioned the status of the-leases of the FBas. Director Segundo responded that before negotiating for these leases the Minimum Standards would be redone. Staff and Legal have been working on the standards and he proposed that a consultant be hired to assist with the negotiations of the FBO agreements. Discussion was heard on this issue. VII. Discussion of Monthly Reports a. Parking Revenue Report b. General Aviation Report (GAR) Director Segundo reported on year-end totals for two airports to compare with CCIA's year-end enplanement totals. He informed the Board the national average was 6.6% below what CCIA did the previous year. CCIA finished 7.6% below 2007 which Corpus Christi International Airport Board Agenda March 91, 2009 Page 3 of 5 equates to 33,000 enplanements. He asked that the Board take in to consideration that Corpus Christi experienced two hurricanes which caused the Airport to shut down for 14 days. He also stated that the Houston Airport Systems, which includes Hobby, Bush and Ellington Field, Bush was down 12% and Hobby 11% for the year. The Valley Airports were also down with Harlingen down 5.9%, Brownsville down 10.5% and McAllen was down 9.82% also noting that they also experienced the same shutdown during the hurricane season. He continued by adding that Midland Airport was down 4.7% with San Antonio experiencing the only increase with 3.5%. He continued by stating that the current CCIA GAR was down 15.7%. He asked that the Board recall that the beginning of 2008 showed increase in enplanements and did not take a downturn until April. He felt that enplanements would not increase until the third or fourth quarters of 2009. Vice-chairman Feferman questioned the impact of American Airlines changing aircraft. Director Segundo reported to the Board that American Airlines will be changing the type of aircraft they will be utilizing at CCIA. He felt that these smaller planes would assist American in keeping operating costs down. Discussion was heard on this topic. Carl Gross, Operations Manager, reported to the Board that American would be utilizing ATR aircraft in April with two RON (return over-night) and in May will switch with one Jet and one ATR and will re-evaluate in dune. Director Segundo stated that one of the trends that Is taking over is that the low- volume carriers with seasonal scheduling. This allows them to switch back and forth based on the volume during the year. He has seen where more of the legacy airlines are using this business model to strategic utilize their aircraft within their fleet. Board member Susser expressed his concern on this type of business model with respect to attracting conventions to this area. Director Segundo stated that the airlines are eager to work with the community to assist in attracting conventions to the area and he is currently working with the CVB on this issue. c. Financial Report Director Segundo tumed over this portion of the meeting to Finance Manager, Mario Tapia. Mr. Tapia began by reporting that the Airport's Financial Report, for the month of February, reflected that revenues are at 55% with expenditures at 53% of the budget with 58% of the fiscal gone. Since revenues and enplanements are down, he is working closely with the department's managers to monitor expenditures not to exceed anticipated numbers of the current year. He reported that at the beginning of the fiscal year, $7.7 million was budget for revenues and $7.9 million for expenditures. With a deficit anticipated, staff is working on cutting on expenditures and new business initiatives coming on-board to close the gap between the revenues and expenditures. Staff has decreased revenues from $7.7 million to $7.5 million equaling approximately $195,000. Expenditures were decreased to $7.4 million which will keep the budget in the black. He added that expenditures are monitored on a weekly basis to keep to the budget. He continued by stating that revenues were decreased by $195,895 primarily from the Parking Lot due to lower enplanements. This decreased the revenue estimate from Corpus Chnsti lntemational Airport Board Agenda March 11, 2009 Page 4 of 5 $9.475 million to $9.275 million. He continued by adding that Advantage filing for bankruptcy caused a lost of revenue of $16,000 monthly guarantee as well as rental for the make-ready facility and rental space. Mr. Tapia reported that expenditures decreased by $536,000 due to cost savings which included $104,000 for environmental assessments and surveys, vacant positions and the cost savings in chiller costs. $188,624 was saved on strategic chiller use. Asst. Director Castillo asked to recognize Maintenance Manager, Gary Williams, who is responsible for this savings. Mr. Tapia continued by stating that vacancies in the Public Safety division for more than one year contributed to the decrease in expenditures. In conclusion, Mr. Tapia reported that, as of today, there are 13 vacancies which equates to a reduction in expenditures. He continued by stating that a baseline budget has been developed for FY 09-10 of $7.2 million. This budget did not reflect the new agreements with the Rental Car Agencies. The budget is due to City Hall on March 30th and CCIA staff is working to complete the budget on time. Discussion was heard on this report. VIII. Discussion of Director's Report a. Status update on Airfield Projects ➢ West GA Apron & Drainage Phase V Construction No changes. ➢ Taxiway Rehab & Drainage Phase VI Project No changes. b. Status update on Facility Projects ➢ FIS Redesign No discussion on this item. ➢ Terminal Roof Replacement No discussion on this item. ➢ Maintenance Facility No discussion on this item. ➢ Perimeter Road Design No discussion on this item. ➢ ARFF Station Design No discussion on this item. c. Status update on Business Development T-Hangars No discussion on this item. Corpus Christi Internatfonal Airport Board Agenda March 11, 2009 Page 5 of 5 Advantage Rent-a-Car Update No discussion on this item. d. Status update on Air Service Development Alleglant Airline Meeting February 2009 Met with Allegiant reps and they were interested in CCIA and will keep us under consideration. They are requesting additional information because they are concerned with Southwest infringing on their business model once they begin service at CCIA. Director Segundo added that he did not feel this would be a problem at CCIA and gave an example of the McAllen airport which has Allegiant flying seasonal flights and Southwest has not infringed on their service as CCIA Is a much smaller catchment area. They have requested a follow-up presentation for submittal. He will also be doing a limited O&D study with Mike Bounds with Sabre to acquire the information on leakage to San Antonio. Will be working with them to make this service a reality either this year or next. He added that local community support would be very important in securing this service. He asked for the Board to garner support from the membership of the Board. Cape Air—TxDOT Aviation Meeting February 2009 Director Segundo stated that Cape Air was receptive to service at CCIA. They proposed four flights per day with any type of schedule. He would like to see Cape Air do a partnership with one of our existing airlines. He would like to see a flight to Austin for business passengers. He added that the only stipulation is they are requesting guaranteed flights. This would entail the local business to become involved with CCIA picking up the difference. He also felt that area airports, including the Valley airports, to pool for the guaranteed flights. e. Status update on Marketing and Promotion ➢ Draft Marketing Plan No discussion was heard on this item. f. Airport-related City Council Agenda Items Update ➢ FAA Grant 44 Appropriation for ARFF Station Modifications No discussion was heard on this item. IX. Identify items to be placed on next agenda The Marketing plan will be placed on the next agenda along with board appointments. X. Adjournment As there was not further business, Chairman Hicks called for a motion to adjourn. Vice- chairman Feferman moved to adjourn and Board member Fisher seconded. The motion carried and the meeting was adjourned at 5:18 p.m.