CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE
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1 CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIRPORT ADVISORY COMMITTEE Minutes from the April 7, 2005 meeting Charlotte Douglas International, A/B Conference Room 8:00 a.m. Present Charles Baker, Vice Chair John Gregg John Day Jeffrey Hay Diane Carter Joel Randolph Dr. Henry Nicholson Stan Campbell Frank Gilreath Randy Imler (arrived at 8:10 a.m.) Absent Frances Harkey, Chair Staff Present TJ Orr, Aviation Director Jennifer Shouse, Staff Advisor Erika Helm Guest Speakers Larry Jenkins, HMS Host, GM for Food and Beverage Donna Flowers, HMS Host, Property/Projects Manager 1. Call to Order Vice Chair Charles Baker called the meeting to order at 8:00 a.m. 2. Welcome New Member Baker welcomed John Gregg, a new member to the Airport Advisory Committee. Gregg was appointed by Charlotte City Council and works for Bank of America as the Managing Director of Loan Syndications. Gregg is also a licensed pilot. 3. Approval of March 3, 2005 Minutes The minutes were approved as written. 4. Business Agenda 1. Airport Legal Services Action: Background: Extend a contract with Moore & Van Allen, PLLC of Charlotte, NC for legal services in the US Airways bankruptcy. In August 2002, US Airways entered Chapter 11 bankruptcy. The City hired Moore & Van Allen to represent the City s interests in that bankruptcy. In September 2004, US Airways entered Chapter 11 bankruptcy again. The City signed a contract in the amount of $50,000 with Moore & Van Allen because of the firm s experience with the earlier bankruptcy. Council is asked to extend the current contract with Moore & Van Allen.
2 Payments under the contract are based on an hourly rate. The maximum payable to Moore & Van Allen under this extension is $100,000. Small Business Opportunity Pursuant to Section 5 of the SBO Program, no SBE utilization goal was set for this contract because subcontracting is not anticipated. Summary of Bids Not applicable Council Date: April 11, 2005 Randolph: Is the City involved or is this just the airport? Orr: This is just for the airport. The City really has no interest in the bankruptcy other than taxes, and that s actually the County s responsibility to collect the taxes for the City. Gilreath: Does Moore Van Allen charge on an hourly basis? Orr: Yes. Gilreath: And they report their hours to you every month? Orr: Yes. Motion: Carter Second: Randolph Vote: 9-0 (Imler absent for vote) 2. Airport Business Center Contracts Action: A. Approve a contract amendment with Bank of America for naming rights and other proposed advertising for the Airport Business Center. B. Award a contract to The Bowers Group of Charlotte, NC in the amount of $313,800 for construction of the Airport Business Center. C. Adopt a budget ordinance appropriating $640,000 from the Airport Included Center Fund Balance. Background: On December 13, 2004, City Council approved a two-year contract with Bank of America ( BofA ) for sponsorship of an Airport business center. The contract specifies that the City will construct the business center and BofA will pay the City $425,000 per year. Since the approval of the agreement, BofA has requested to extend the term to a three-year contract with two, one-year extensions. All other contract terms remain unchanged. The Business Center is designed to provide travelers with workstations, computer and peripherals, internet access, copier and fax services. This construction contract will provide demolition and upfitting of approximately 2800 square feet in the Airport Atrium to accommodate these services.
3 Small Business Opportunity Sponsorship Agreement Established SBE Goal: N/A Committed SBE Goal: N/A The SBO Program does not apply to this agreement, which is not a Covered Contract pursuant to Sections 2.14 and 2.16 of the SBO Policy. Construction Contract Established SBE Goal: 4% Committed SBE Goal: 5.8% The Bowers Group, the low bidder, exceeded the SBO goal and good faith efforts. They committed 5.8% of the total contract to the following certified SBE firm: Simpson s Floor Fashions, Inc. Summary of Bids The Bowers Group $313,800 Edison Foard, Inc $343,440 Council Date: April 11, 2005 Carter: Is that amount what you anticipated having to put in it? Is that what you had in mind? Orr: Yes. Carter: Has the Bowers Group constructed for you before? Orr: Yes they have. They have done a number of our concession upfits and have done an excellent job. Gilreath: The money you are making from BofA, it seems that will be enough and you won t need anymore advertising. Orr: Well remember that it is $425,000 per year. Motion: Carter Second: Gilreath Vote: Runway Design Contract Action: Background: Award a contract to Talbert & Bright, Inc. of Charlotte, NC in the amount of $3,416,000 for the design of a third parallel runway. This contract will provide design, bidding and construction administration services for a third parallel runway, which was identified in the Airport Master Plan Update approved by City Council in April 1997, and by the FAA in April Subsequently, the Airport completed an Environmental Impact Statement for the project, which was approved by the FAA in April On August 23, 2004 City Council accepted a Federal Aviation Administration grant, a portion of which will fund 75% of this project. The remaining 25% is funded through General Airport Revenue Bonds, whose debt service will be repaid by the airlines through landing fees. Talbert & Bright was selected using a RFQ process. A selection committee comprised of Airport staff, members of the Airport Advisory Committee, and a representative of the FAA reviewed the
4 FAA Disadvantaged Business Enterprise Established DBE Goal: 15% Committed DBE Goal: 15% Public Art Funding The Third Parallel Runway Design is not an Eligible Project. Summary of Bids N/A Council Date: April 25, 2005 Motion: Nicholson Second: Gilreath Vote: 10-0 qualifications of six firms and conducted interviews, after which a selection was made. 5. Status Reports 1. Volunteer Program Orr introduces Jennifer Shouse who works in the airport s Public Affairs Department. Shouse gives an update and overview of the airport s new Volunteer Program. I. Customer Service History (Information Counter and Welcome Center) a. Information Counter established in 1982 b. Welcome Center established in 1992 c. Counters staffed with paid employees through a staffing agency d. Responsibilities include visitor s passes, directional information, tourist information, paging, flight information, ground transportation, baggage information and more. II. Overview of Volunteer Program a. Mission Statement The CLT Volunteer Program is committed to providing airport customers a positive experience through exceptional customer service and Southern hospitality. b. Program Objectives To provide assistance to customers in areas currently not being served including concourses, atrium, far ends of baggage claim and ticketing. Meet, greet and assist passengers during their time at CLT. c. Volunteer Qualifications Volunteers should be able to work well with people, be willing to assist others, possess good communication skills, be reliable, be committed and be physically able to perform the duties of the job. d. Volunteer Responsibilities/Duties Assist passengers with arrival/departure info, baggage info, paging services, ground transportation, international arrivals services, translation needs, with connecting flights, gate locations, locating passenger assistance carts and using resources (FIDS, Customer Service Centers, signage, etc.) III. Volunteer Coordinator a. Airport recently hired a volunteer coordinator to manage the Volunteer Program, Cathy Curtis from Operations. b. Duties will include managing the program on a day-to-day basis, making volunteer schedules, recruiting volunteers and training volunteers. c. Volunteer Coordinator will work under the Public Affairs Department.
5 IV. Amount of Volunteers Needed and Locations a. High Traffic Points: Atrium, Baggage Claim, Ticket Lobby and Concourses b. Hope to recruit a minimum of 100 volunteers V. Volunteer Shifts (14 volunteers needed per shift) a. Five Hour Shifts Preferred: 1. Shift One: 7:00 a.m.- 12:00 p.m. 2. Shift Two: 12:00 p.m.- 5:00 p.m. 3. Shift Three: 5:00 p.m.- 10:00 p.m. VI. Uniforms (showed AAC sample) a. Most airport volunteer programs are themed around a known community tourist attraction. CLT s program will focus on a racing theme, with uniforms resembling an actual NASCAR pit crew. In addition, CLT s volunteer program has been deemed the CLT Pit Crew. Perhaps a customer needs to refuel, the volunteer can direct them to the nearest Starbucks. Maybe a customer needs to make a pit-stop, the volunteer can direct them to the nearest restroom. CLT s uniform will be a button-up two color shirt, teal and black. On the back of the shirt, there will be the crossed checkered racing flags with the message underneath, Flag me down for airport information. The front of the shirt will have the airport s logo and the words Airport Volunteer. Dress: 1. official volunteer shirt (provided by the airport) 2. Slacks- Black or Khaki 3. Comfortable shoes VII: Recruitment a. Local Newspapers (Charlotte Observer, Gaston Gazette, etc.) b. Airport Publications c. Airport Web Site d. Carolinas Historic Aviation Commission e. Local churches, senior groups, retired professional f. Charlotte Chamber g. Plant story with local news stations h. Government Channel i. City of Charlotte Publications/Web Site j. Word of mouth 2. HMS Host/Concession Update Orr introduces Larry Jenkins, HMS Host General Manager for Food and Beverage at CLT, and he introduces Donna Flowers, Property and Projects Manager for HMS Host at CLT. Both Jenkins and Flowers give the committee an overview on upcoming concessions. HMS Host is the airport s master concessionaire. The HMS Host concessions are estimated to gross over $70 million this year. HMS Host, in addition to the DBE sub-tenants, account for approximately 1,000 employees. The airport has a deal with HMS Host and they pay CLT 10% of gross revenues. CLT does not charge HMS Host rent for the space. New Concession/Concepts 1. Brookwood Farms BBQ: Took the place of Miami Subs in the Atrium. It opened a year ago and has been very successful. It is a local company. The concession is very authentic with all meats being smoked on-site. Gregg: Has this type of concession been rolled out anywhere else? Jenkins: There is a similar concept out at Concord Mills Mall and Dulles International Airport.
6 2. Phillip s Famous Seafood: This concession is on Concourse C and takes the place of the Outer Banks Seafood Grill. It is a Maryland based company. Phillips has crab cakes, Mahi tuna, Lobster Bisque and more. The sales volume has increased 70% since the conversion of the concession. This is the first Phillip s in an airport. 3. Tequileria: This concession took the place of Cheers in the atrium. It is a co-managed concession with Jose Cuervo. Forbes recognizes them as one of the leaders in brand management. It is an authentic Mexican eatery and opened in late The airport does not display the Jose Cuervo name due to North Carolina laws that prohibits identification of a liquor. 4. Jamba Juice: This concession just opened through a DBE operator. It is located on the D/E connector and is a new concession vs. a new concept. Restaurant News rated this one of the hottest concepts of the year. This concession is estimated to make $750,000 annually. It is around 600 square feet of space. 5. Johnston and Murphy: This is a new concept that takes the place of The Disney Store, located on the D/E connector. This store opened in early Johnston and Murphy is trending close to the same revenue as Disney at $1.2 million. The CLT location was featured in last years HMS Host annual report. 6. Brookstone: This is a new concept that took the place of Wilson s Leather. Brookstone is generating around $1.2 million per year, which is what Wilson s Leather generated. This store answers the needs for the gadgets and electronics, which is a growing trend. The concession is located on the Concourse C and a small kiosk in the atrium. 7. Forever Silver: This is a new concession located adjacent to Jamba Juice. It is owned by Erwin Pearl. This is the third location on the east coast. This targets the trendy and younger clientele, silver jewelry is very trendy right now. 8. Yadkin Valley Wine Bar: This is a new concession, which opened on April 1. It is located on the D/E connector. This addresses the need to support the Wine Growers Association of North Carolina. The Yadkin Valley received a grant from the federal government to assist with the funding of the concession. The concession is now trending approximately $350,000, based on their first week of sales. The NC grape industry distributes most of the grapes used in wine across the country. The Yadkin Valley consists of 10 vineyards. Coming Soon 1. Starbucks: Since September 11 th, there is a need for concessions prior to the security checkpoints. HMS Host plans to open a Starbucks on the upper ticketing level, across from B security checkpoint. This will be the 6 th Starbucks outlet at CLT. 2. Palm One: This store addresses the need for the gadgets. It will sell palm pilots, Blackberries, I-pods, etc. There is a Palm One located in Atlanta and it is trending over $1.5 million annually. 3. Genesco Lids: The airport currently has a Lids located on Concourse B and does $700,000 annually. HMS Host is proposing to place another outlet on the D/E connector adjacent to Forever Silver. The space was formerly used by Mesa Airlines, but is now vacant. 4. Executive Shine: This is a shoeshine concept. Executive Shine is a woman-owned business. They have extensive airport experience at Washington Dulles and Denver. They treat shoes as an art and relaxing experience. Their techniques incorporate from the days when shoeshine was a luxury. No brushes of any sort are used. They shine all shoes by hand while massaging the customers feet. CLT will also look at using massage chairs during the shoeshine process. 5. Rocky Mountain Chocolate: This is a regional concept with a franchisee out of Gastonia. Proposed
7 location is adjacent to the winery. 6. Terminal Getaway Spa: Services will include manicures, pedicures, massages, facials and hot shaves. Products will also be sold in the spa. Spa will open this summer and be located on the D/E connector. 3. Parking Rates Orr tells the committee about new parking rates to come at the airport. The new 3,000-space parking deck will open May 1, We want to adjust our parking rates when that occurs. Current Rate New Rate Hourly Deck $.75 per half hour (free if you stay less than 15 minutes) $16 daily maximum Free for the first 30 minutes, $1 each additional half hour $16 daily maximum Daily Deck (new deck) None $1 per hour $6 daily maximum Daily Surface Lot $1 per hour $4 daily maximum $1 per hour $6 daily maximum Remote $2.75 per day $ 3.00 per day Long Term (formerly Satellite) $2.75 per day $3.00 per day Valet $19 per day $19 per day Imler: Why would we make the first 30 minutes free? Orr: Right now the first 15 minutes is free. Despite signage, 90% of people go into the wrong parking lot. A lot of people get into the deck not intending to be there and then they want to get back out. The reason for stretching it to 30 minutes helps encourage people that are coming to pick-up someone or meet someone to use the deck instead of trying to park on the front curb. Imler: I thought that was why we had the cell phone lot. Orr: We do for those people who can make cell phone contact. We have a lot of people who come out here to pick someone up and they have no idea what time that person s flight arrives. And the people continue to loop around the curb and it creates traffic and the TSA doesn t allow it, and then we have to invest in a lot of resources to control that. Imler: Do we think we will lose a lot of revenue by doing that? Orr: No. Gilreath: How s the cell phone lot going? Orr: We still don t have it signed properly, but it is continuing to grow. 4. ATM s Orr tells the committee about new ATMs and locations. Four ATMs will be added to the terminal this spring under a five-year contract. This will increase the number of ATMs at the airport from five to nine. The additions were sparked by growth of the terminal and requests from passengers. Wachovia, First Citizens, BB&T and Bank of America are taking part in the deal, which also will provide extra revenue for the airport.
8 New ATM locations: E Concourse: Wachovia, First Citizens Baggage Claim West: Bank of America Baggage Claim East: First Citizens Existing locations: B Checkpoint: Wachovia, BB&T, First Citizens C Checkpoint: Wachovia, First Citizens The new ATM locations will make it more convenient for CLT passengers, employees and visitors to conduct money transactions. 6. Director s Report 1. North Carolina Airport Association Conference The North Carolina Airport Association held it s conference last month and Dr. Nicholson and Frank Gilreath attended. This year s conference was held in Pinehurst on March Topics included general aviation security, challenges facing the airline industry today, and updates on state and federal programs. 2. Airport Police Captain Promoted Airport Police are employees of the airport. CLT partners with CMPD and they assign a Police Captain to the airport to be in charge of the airport s police force. Airport Police Captain Marc DeLuca was recently promoted to the rank of Major with the Charlotte-Mecklenburg Police Department. Marc has been a valuable member of the airport and we will miss his enthusiasm and experience as he moves on to more responsibilities with CMPD. 3. Airport Safety During the month of February, the Aviation Department had no vehicular accidents or personal injuries during the month of February. It s a remarkable feat for a department that has more than 300 licensed drivers that operate nearly 300 pieces of motorized equipment. This is credited to an increased emphasis on safety and the formation of a Safety Task Force. CLT continually seeks to ingrain safetyminded information into its operating culture. Airport drivers operate in extreme conditions with constant starting and stopping, crowded roadways and high traffic volumes. More plans are in the works to continue reducing driver accidents. CLT plans to send drivers to a class at the new driving range at the police academy. We are also in the process of trying to implement a safe driving program, which will reward employees with good driving records. Meeting adjourned at 9:17 a.m. TJ Orr, Aviation Director Distribution: Mayor & City Council Pam Syfert, City Manager Brenda Freeze, City Clerk M. Schuster, UNCC Library Al McAulay, Jr., Chamber Av. Committee Carroll Gray, Charlotte Chamber
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