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HomeMy WebLinkAboutMinutes Airport Board - 04/26/2023 Citof Corpus Christi 1pu Leopard Street y p Corpus Christi,TX 78401 11 a cctexas.com Meeting Minutes - Final Airport Board Wednesday,April 26,2023 3:30 PM International Airport Board Room 1000 International Blvd.C.C.,TX.78406 The City of Corpus Christi promotes participation regardless of race, color, national origin, sex, age, religion, disability or political belief. Reasonable accommodation is provided upon request and in accordance with the Americans with Disabilities Act. For assistance or to request a reasonable accommodation, contact(361) 826-3300 at least 48 hours in advance. Upon request, this information can be available in larger print and/or in electronic format. A. Call To Order The meeting was called to order at 3:30 p.m. by Second Vice-chairman Hicks. B. Roll Call Roll was called and a quorum was present. Present: 11 - Paul A. Cameron Jr., Hans Schumann,John LaRue, Kusumakar Sooda, Rick Barrera, Mike Culbertson, Brett Oetting,Jeremy Taylor, Randall Hicks, Rey Saenz,and Jon Reily Absent: 1 - Rosie Collin C. Public Comment There was no public comment. D. Approval of Minutes and Action on Absences 1. 23-0743 Approval of the Absences for the March 29th, 2023 Regular Airport Board Meeting Attachments: 2023 AIRPORT BOARD ATTENDANCE Second Vice-chairman Hicks called for a motion to excuse the absences for the March Regular Airport Board meeting. Board member Collin was the only current member absent from the March 29th Regular Airport Board meeting. Board member Barrera moved to excuse Board member Collin. Board member Cameron seconded and the motion carried. 2. 23-0744 Approval of the Minutes for the March 29th, 2023 Regular Airport Board Meeting City of Corpus Christi Page 1 Printed on 6/23/2023 Airport Board Meeting Minutes-Final April 26,2023 Attachments: 03292023®March Airport Board Minutes-Unpublished Second Vice-chairman Hicks called for a motion to approve the meeting minutes for the March 29th Regular Airport Board Meeting. He also called for a correction to the minutes to reflect his name be listed only once on the attendance for that meeting. Board member Barrera moved to approve the meeting minutes with the correction stated by Second Vice-chairman Hicks. Board member Saenz seconded and the motion carried. E. New Business for Discussion and Possible Action 3. 23-0745 Discussion and Possible Recommendation to City Council to Approve Contract with Coffman Engineering for Airport Master Planning Services Attachments: 04262023-Almort Master Plan Deputy Director Miller informed the members of the timeline for this item which began in October, 2022. He added that interviews were held January, 2023 with selection of Coffman Associates for this project. The City approved Coffman's proposal and it was also accepted by the FAA. He reported that the Airport is required to have a Master Plan in order to qualify for FAA grants. The last Master Plan began in 2000 and was completed in 2007. The FAA requests that Master Plans be done at least every 20 years. Covid delayed this current process. He also advised the members on the elements of a Master Plan, as well as, four additional items that are based specifically on our Airport's needs, strengths and weaknesses. Discussion was heard on this item. Second Vice-chairman Hicks called for a motion to approve this item. Board member LaRue moved to approve the item. Board member Saenz seconded and the motion carried. 4. 23-0746 Discussion and Possible Recommendation to City council to Approve Lease with Texas A&M University-Corpus Christi Lone Star UAS (Unmanned Aircraft Systems) Program Attachments: 04262023-TAMUCC-Lonestar UAS Program Deputy Director Miller reported to the members that the location for this program will be in the Airport's former Communications Building and fire station. This building has become obsolete and was being used for storage. It will now be used by Lonestar's UAS program. This item has not been finalized with TAMUCC; but, is being presented now to obtain the Board's approval which will be included in the packet that will be presented to City Council for approval. The lease was drafted in accordance with the recently completed property appraisal. Further discussions regarding the terms will be held with TAMUCC. Second Vice-chairman Hicks called for a motion to approve this item. Board member Cameron moved to approve the item. Board member Barrera seconded and the motion carried. City of Corpus Christi Page 2 Printed on 6/23/2023 Airport Board Meeting Minutes-Final April 26,2023 5. 23-0747 Discussion of Air Service Task Force Director Smith reminded the members that, currently, the Chairman of the Airport Board has a seat on the Air Service Development Task Force. Once Airport Board elections are conducted next month, the Airport Board Chairman will be tasked with attending the Task Force meetings. Director Smith also gave some background information on the Air Service Task Force for the benefit of the newly appointed members. Discussion was heard on this item. 6. 23-0748 Discussion on the Election of Airport Board Officers at the May Meeting Discussion was heard on the process for the election of Airport Board officers. As in the past, nominations will come from the floor and voted on with a voice vote. If there are several individuals that are being considered for any one position, ballots will be used for voting. Elections will be held at the May meeting since all the seats on the board are not currently filled at this time. City Council should be appointing a new member at their June 13th City Council meeting. Director Smith asked that members email their nominations to Second Vice-chairman Hicks before the May meeting. Discussion was heard on this item. F. Staff Reports 7. 23-0749 Presentation of Airport Customer Survey Results for Calendar Year 2022 Attachments: 04262023-ACI ASQ Survey Results 2022 Director Smith reported on the Airports Council International Air Service Quality report that includes 800 airports world-wide with 400 in North America. He also added that all Texas Airports participate in this report. At the CCIA, this program is overseen by Noemi Perez, Sr. Management Analyst, who works with two interns that take 350 air service quality surveys every quarter from CCIA passengers. This report presents CCIA's first year results. Scoring is rated from 1 to 5 with 5 being the best score. Overall, CCIA rated 4.43. He felt very proud of this score as it ranked the Airport in 8th place in North America and 1st place in Texas. Service Quality Items were listed along with CCIA's ranking for each item. The four highest scores were: 1) ease of finding check-in area; 2) ease of getting to the airport; 3)wait time; and, 4) ease of finding way. The four lowest scores were: 1) restaurants/bars and cafes; 2)shops; 3) availability of electronic device charging options; and 4) entertainment and leisure options. He reported staff was aware of these issues and had already taken steps to remedy these items. He discussed how staff will be working to rectify these items. He continued by reviewing the report's passenger profile which indicated that the largest demographic flying through CCIA is females ages 45 to 54. He continued reviewing the score distribution along with the listing of the top five most important items. The report indicated that business travelers rank the Airport highest of all types City of Corpus Christi Page 3 Printed on 6/23/2023 Airport Board Meeting Minutes-Final April 26,2023 of travelers with 90% of business travelers raking the Airport as "excellent" or"very good". The airlines were also rated on satisfaction by this survey with Southwest as first, American second and United third. He continued by stating that CCIA scored higher than other airports in all categories except shopping;dining, charging stations and entertainment/leisure options. However, these options have already been addressed by staff and are in the process of finalizing projects to improve in these areas. He concluded by stating that more travelers rank CCIA as "excellent" or"very good"than our competition in North America. 8. 23-0750 Presentation of Airport Cost Per Enplanement Reduction Attachments: 04262023-Airport Cost Per Enplanement eduction Deputy Director Miller reported to the members on Cost Per Enplanement(CPE). He stated that staff tracks the Airport's cost per enplaned passenger in order to find ways to reduce it as it is extremely important to the airlines. Airlines use this cost to analyze how expensive it is to operate at an airport; and, staff also tracks the Airport's this as financial performance is based on the CPE. He presented a table to the members showing the CPE of similar sized airports as CCIA nation-wide, as well as, Texas airports. The table as of 2021 showed CCIA's CPE at$15.06, which is above both the average of$8.83 for airports of similar size nationally and the average of$8.54 for Texas airports. This cost is what each airline pays CCIA for each passenger which includes landing fees, terminal rates, etc. He continued by stating staff has analyzed the contributing factors for the high CPE and found that additional non-aeronautical revenue was needed. Another factor impacting the CCIA's CPE was high operating costs and high allocation costs by the City. He clarified by stating that CCIA does not take any funds from the City of Corpus Christi as it is an Enterprise Fund department which generates revenue. Therefore, the City allocates costs for services provided which are cost prohibited for the Airport to maintain such as Legal, Engineering, HR, Accounting, etc. He also reported that staff has identified how to lower the CPE and started the process last year by solidifying the Airport's current sources of revenue, as well as, finding new sources of revenue. Two new sources of revenue that have been identified are the capture of landing fees for non-commercial aircraft, as well as, TNC (Transportation Network Companies) revenue from Uber and Lyft. Staff continues to seek new revenue sources such as a gas station and hotel on Airport property. He is hopeful that this will lower the CPE and, with upcoming negotiations with the Airlines, make CCIA more attractive to increase flights and destinations. He added that for 2022, the CPE is now at$10.49 which is a 30% reduction cost to the airlines. Airport staff is working to continue lowering the CPE within the next 3 to 5 years. Discussion was heard on this item. 9. 23-0751 Presentation of South Central Chapter of AAAE Conference Attachments: 04262023-SCC- E Conf Update City of Corpus Christi Page 4 Printed on 6/23/2023 Airport Board Meeting Minutes-Final April 26,2023 Deputy Director Miller informed the members that he would be attending the AAAE South Central Chapter conference next month in Oklahoma City. This is the conference that was held in Corpus Christi last year. He will be attending to represent CCIA and will give the members an update at next month's meeting. 10. 23-0752 Property Management Update Attachments: 04262023-Property Management Update Deputy Director Miller reported that the gas station RFP is still out for review but will be closing May 23rd. He explained that it has been out for some time because a draft contract was provided to the prospective vendor for review. Once this RFP is completed and awarded, the RFP process for a hotel will begin. The Food, Beverage and Retail concession has already been awarded to the current operator. Legal is working on the contract and once it is finalized, it will go to City Council for execution. He anticipates that to happen around mid-summer. He also announced that the Airport's property appraisal has been completed. He added that the market values have been adjusted and a review of current leases will be adjusted with the new rates. Discussion was heard on this item. 11. 23-0753 General Activity Report Attachments: 04262023-GAR-PKT Director Smith reported that the General Activity Report indicated that almost 8,000 more seats were put on the market in March, 2023, compared to the benchmark year of 2019 for the same month. He added that enplaned passengers were up 7,000 in March 2023. He anticipates April to also be a record breaking month. Discussion was heard on this item. 12. 23-0754 Financial Report Attachments: 04262023-Financial Reports Finance Manager, Kimberly Miller, reported that Parking Operations revenue was at $245.459 which was a 30% increase from March 2022 and a 19% increase from February, 2023. She clarified that since this is the first year TNCs (Transportation Network Companies) have been recorded, there was no revenue information for previous years. She continued by reporting that Parking Lot revenue has been over $200,000 for eleven months in a row. She also reported that the Food and Beverage Concession was up 32%from last month and up 20%from last month. She reviewed the 13 month data comparison between passengers, concession and parking which showed a steady upward climb. She continued by reporting that actual revenues are at$5.8M with operating expenses were at$4.7M for the 2nd quarter. She concluded by reporting that net income was at$630,680. Discussion was heard on this item. 13. 23-0755 Construction Report Attachments: 04262023-CONSTRUCTION REPORT City of Corpus Christi Page 5 Printed on 6/23/2023 Airport Board Meeting Minutes-Final April 26,2023 Deputy Director Miller reported that the $18M Terminal renovation project was in full swing. He presented a photo of the roof repair work which he anticipates completion within the next two weeks. There was an issue with several leaks during the recent rain storm . Spaw Glass, the contractor for this project, has been very responsive in rectifying any issues that came up and will continue to complete the repairs from the storm. He also showed the members the new patio construction project which should begin by May 22nd. He also reported that roof and window seal replacement are underway; and, the fire system upgrades are underway during off-hours. G. Future Agenda Items Tour of the Driscoll facilities Update on the demolition of the Gault Hangar H. Adjournment As there was no further business, Second Vice-chairman Hicks adjourned the meeting at 4:37 p.m. City of Corpus Christi Page 6 Printed on 6/23/2023