HomeMy WebLinkAboutMinutes City Council - 11/30/2010 - SpecialPRESENT
Mayor Joe Adame
Mayor Pro Tem Mark Scott
Council Members:
Chris Adler
Larry Elizondo, Sr.
Kevin Kieschnick*
Priscilla Leal
John Marez
Nelda Martinez
*Arrived at 10:03 a.m.
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Special Council Meeting
November 30, 2010 - 10:00 a.m.
City Staff:
City Manager Angel R. Escobar
City Attorney Carlos Valdez
City Secretary Armando Chapa
Mayor Adame called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Mayor Adame and the Pledge of Allegiance to the United
States flag was led by Council Member Scott.
City Secretary Chapa called the roll and verified that the necessary quorum of the Council
and the required charter officers were present to conduct the meeting.
* * * * * * * * * * * *
Mayor Adame announced the executive sessions, which were listed on the agenda as
follows:
1. Executive Session under Texas Government Code 551.074 Personnel Matters to deliberate
the appointment of a City Council Member with possible discussion and action in open
session.
2. Executive session under Texas Government Code Section 551.071 regarding g Friends of the
Coliseum vs. City of Corpus Christi, Texas Cause No. 10-000769, in the 250 District Court,
Travis County, with possible discussion and action in open session.
The Council went into executive session. The Council returned from executive session.
Mayor Adame announced that no action would be taken on Item 2 in open session.
Mayor Adame opened discussion on Item 1 regarding the appointment of a City Council
Member. Mr. Elizondo made a motion to appoint Linda Strong as Council MemberAt Large to serve
the remaining council term vacated by Brent Chesney. The motion was seconded by Mr. Kieschnick.
City Secretary Chapa polled the Council for their votes as follows:
1. MOTION NO. 2010-286
Motion appointing Linda Strong as Council MemberAt Large to serve the remaining council
term vacated by Brent Chesney.
INDEXED
Minutes — Special Council Meeting
November 30, 2010 — Page 2
The foregoing motion was passed and approved with the following vote: Adame, Adler,
Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye".
* * * * * * * * * * * *
Mayor Adame opened discussion on Items 3 — 5 regarding the West Fixed Base Operations
(FBO) at the Corpus Christi International Airport. Director of Aviation Fred Segundo introduced the
presentation team including Wesley Earl with The Hiller Group; John Mullen and Michael Cox with
Express Airport Services (EAS); John Decostro with Trillion Aviation; and Assistant Director of
Aviation Enrique Castillo. Mr. Segundo also introduced the Airport Board members present including
Jay Wise, Rosie Collin, and Bill McCord. Mr. Segundo reported that Mr. McCord assisted with the
Request for Qualification (RFQ) process; the selection committee; and negotiated agreements with
EAS. Mr. McCord, on behalf of the Airport Board, stated that the Board is unanimously in favor of the
new management objectives and encouraged the Council to approve the items presented.
Mr. Segundo explained that the FBO provides services to general aviation, airlines, charters,
and cargo operations outlined in the Airport Minimum Standards for Commercial Aeronautical
Services Providers. Mr. Castillo provided a brief overview including the background of the process
and Federal Aviation Administration (FAA) grant assurances. Mr. Segundo highlighted the business
terms associated with the three items.
Mr. Cox, EAS, responded to questions regarding EAS management services in Appleton,
Wisconsin; benefits to operations that are not part of the previous model; and the history of business
and liability.
Mr. Earl, The Hiller Group, referred to a powerpoint presentation on the fuel supply program
including a background on the Alliance Program; FBO benefits; the competitive landscape;
marketing of the FBO and the network; and pricing examples.
The following topics pertaining to this item were discussed: whether the RFQ was for
management only or total inclusive of operations; the number of responses to the RFQ; whether
Atlantic Aviation indicated the reason they chose not to respond to the RFQ; the unsuccessful short
term lease negotiations with Atlantic Aviation; the difference between the current services performed
by Atlantic Aviation and the new management business model; the City assuming responsibility
of maintaining the building under the new agreement; concern with the City creating exclusivity and
staffing City employees; the contract with Signature Flight Support and East FBO objectives; a
competitive environment with no exclusive fuel provider at the Airport; the future contractual form for
East FBO operations; the benefits of the new business model including lower fuel cost for users,
funds reinvested into the facility, and the ability to negotiate discount carriers; the number of airports
operating under this same management model; how the business model achieves upgrading the
facilities and whether there is an alternative; performa projections; the current income from the FBO;
other airports that have combinations of a managed facility and a standard FBO in the same facility;
the opposition from current users to change the business model and concern with losing current
users to surrounding airports; the number of FBOs in the fuel provider network; liability issues; and
whether the Airport Board had outreach with the airport carriers.
Mayor Adame called for comments from the audience. Penny Snow, Al Dodds Aviation,
asked questions regarding the City setting fuel prices and EAS's experience on FBO management
operations. Debbie Lindsey -Opel, 700 Everhart, provided background on Atlantic Aviation
operations and asked the Council to extend the agreement with Atlantic Aviation. Bob Parker,
President of RepCon Incorporated, spoke regarding the concern and unanimous opposition of
operators at the Airport to the new business model and recommended extending the agreement with
Minutes — Special Council Meeting
November 30, 2010 — Page 3
Atlantic Aviation until the contract with Signature Flight Support expires and review the total
operations. Tim Fisher, private pilot, stated he was told that if he was not happy with the fuel
services, he could move his operations. Mr. Fisher added that if the Council supports this proposal,
he will move his operations. Council Member Scott stated that if those comments were made, he
apologies and hopes that the City will not lose his business. In response to. Council Member Scott,
Mr. Fisher stated that he will keep his business at the Airport if Council extends the lease with
Atlantic and is comfortable with their operations.
Daniel Allen, 335 Naples Street, stated that Atlantic Aviation did not respond to the RFQ
because Atlantic does not provide the management services business model. David Holzschuh,
airport mechanic, stated that Atlantic has not received an opportunity to brief the Council and spoke
in opposition to the changes at the Airport. Tomas Torres, Jr., General Manager for Atlantic Aviation
stated that Atlantic understands what the City needs and wants to work with the City. Mr. Torres
added that Atlantic wants to make a commitment to improve the facility and increase revenue sales
at the Airport. Mr. Torres added that Atlantic wants to be at the Airport and wants to stay at the
Airport.
Council Member Adler stated that she has reviewed all of the information and is not
convinced with the justification for the change. Ms. Adler added that she supports working with the
current customers and not making a change at this time. Council Member Scott stated that he feels
that the RFQ process was fair and open and understands the reason that Atlantic chose not to bid.
Mr. Scott also commented that he sees the opportunity to create a new model that can reduce the
costs to users and create a better facility but is also concerned that the users do not uniformly
support the model. Mr. Scott asked representatives from Atlantic to explain how they would be able
to help the City achieve the goals to improve facilities; lower fuel costs, and attract additional
business.
Michael Simmant, Regional Manager for Atlantic Aviation, stated that Atlantic is willing to
look at a reasonable rate increase on rent and invest in the facility with a long term lease to amortize
the investment. Mr. Simmant also stated that Atlantic would look at options for lower fuel costs and
recruit discount carriers.
Council Member Leal asked questions to Atlantic Aviation including the number of
surrounding airports Atlantic does business with locally. Mr. Simmant stated that Atlantic does not do
business with local airports but listed the surrounding cities it does business with in the region. In
response to Ms. Leal, Mr. Segundo stated that the total revenue received from Atlantic is
approximately $80,000 to $95,000 per year and the total maintenance costs for the facility is
approximately $550,000 to keep certification with the FAA.
Mayor Adame spoke regarding the cost of maintenance per year that Atlantic Aviation is
paying in addition to their rental costs.
Council Member Kieschnick stated that he was uncomfortable with supporting the change to
the business model right now and supports extending the contract with Atlantic and considering the
Signature and Atlantic contracts simultaneously.
Don Feferman, Airport Board, stated that the users have not expressed their reason as to
why they do not support the changes. Mr. Feferman added that the lease with Atlantic will expire and
the lease will have to go up for bid and there is no guarantee that Atlantic will be awarded the lease.
In response to Council Member Scott, Mr. Segundo stated that the contract with Atlantic Aviation
may have a holdover clause but would need to discuss with Atlantic the ability to extend the contract
month-to-month.
Minutes — Special Council Meeting
November 30, 2010 — Page 4
Council Member Scott asked whether staff had developed a "Plan B". Mr. Segundo stated
that staff did not develop a detailed "Plan B" because staff believes in this new model. Mr. Segundo
stated that moving forward staff will take into consideration that this plan has to be a fair and open
process.
Council Member Martinez spoke in support of the new business model. Council Member
Elizondo stated that the concerns of the users need to be addressed and would not support the
items today. Mayor Adame expressed concern for the liability of the City and the cost to operate and
maintain the facility. Mr. Adame added that the City needs to look at alternative ways to encourage
people to invest long term in the community.
City Secretary Chapa polled the Council for their votes as follows:
3.a. FAILED
-e9
- e
revenues to be received from the West Fixed Base Operation (FBO) at Corpus Christi
appropriations by $1,130,021 each.
An emergency was declared, and the foregoing ordinance failed with the following vote:
Martinez voting "Aye"; Adame, Adler, Elizondo, Kieschnick, Leal, and Scott, voting "No";
Marez was absent.
3.b. FAILED
supply agreement with The Hiller Group, Inc. to support flight operations associated with
Ce ue--Christi International Airport West FBO.
The foregoing motion failed with the following vote: Martinez voting "Aye"; Adame, Adler,
Elizondo, Kieschnick, Leal, and Scott, voting "No"; Marez was absent.
4. FAILED
Motion authorizing the City Manager, or his designee, to execute a five (5) year lease
purchase agroemcnt with Fortbrand Services, Inc. for Aviation ground support equip-mont4e
I . -
The foregoing motion failed with the following vote: Martinez voting "Aye"; Adame, Adler,
Elizondo, Kieschnick, Leal, and Scott, voting "No"; Marez was absent.
5. FAILED
operations.
The foregoing motion failed with the following vote: Martinez voting "Aye"; Adame, Adler,
Elizondo, Kieschnick, Leal, and Scott, voting "No"; Marez was absent.
Minutes — Special Council Meeting
November 30, 2010 — Page 5
Mayor Adame called for petitions from the audience. John Jackson, 1800 SPID, Lot 302,
encouraged the Council and the public to donate new or gently unused toys to the children of the
Cofonias to the Alliance Ministries Christmas Toy Drive. John Gonsalves, 1514 Oak Habor, spoke
regarding the trespassing of workers making improvements on private property without notifying the
owner of the property. Abel Alonzo, 1701 Thames, thanked Council Member Elizondo, Police Chief
Troy Riggs and Rudy Trevino who joined with him on La Voz radio to give thanks to the community
that assisted in helping 21 families for Thanksgiving with $100 HEB certificates. Mr. Alonzo also
spoke in support of elected officials. Robert Pate, 241 Bayside, spoke regarding the vision of the
Airport and FBO operations. Mr. Pate added that in order to get the ultimate investment and have an
impact, the City should put out an RFQ to all FBOs carriers that can put in capital investment and
make it a first class facility. Mr. Pate also recommended having the contracts with Atlantic and
Signature run conterminously and then issue an RFQ for the FBO for the entire operation.
*************
Mayor Adame encouraged the public to attend the Las Luces and Harbor Lights
celebrations.
There being no further business to come before the Council, Mayor Adame adjourned the
Special Council meeting at 3:16 p.m. on November 30, 2010.
*************
I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Special
Meeting of the Corpus Christi City Council of November 30, 2010, which were approved by the City
Council on December 7, 2010.
WITNESSETH MY HAND AND SEAL, on this the 7th day of December, 2010.
Armando Chapa
City Secretary
SEAL