Others in Attendance: Airport Manager, Billie Jo Grafton, Airport Clerk, Claudia Chavarria.
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1 International Airport Commission Meeting Minutes Airport Terminal Building City of Del Rio, Texas 1104 West 10 th St. Del Rio, Texas Wednesday August 24, :00 P.M. ************************************************************************ 1. Call to Order The meeting was called to order at 6:03 p.m. by Chairman Bolstead. 2. Roll Call Present: Absent: Leslie Sanders Rodger Paxton Garry Bolstead Wayne Casson Susan Taylor Danny Gallaher Lew Nunley A quorum was declared. Others in Attendance: Airport Manager, Billie Jo Grafton, Airport Clerk, Claudia Chavarria. 3. Approval of Minutes Commissioner Sanders made a motion to approve the meeting minutes. Commissioner Taylor second the motion. The motion passed by unanimous vote. 4. Other Business A. Ms. Grafton said she had another visit from Mr. Lowe (Pico Aviation) today; he was here to find a way to reduce cost. He was focused on the load factors of the airline carrier because his fuel sales are down, he is trying to keep his profits up. Commissioner Paxton said Mr. Lowe wanted to cut Saturday s and Sunday s before. Ms. Grafton said that maybe that is what he is looking at. He said the airline has not bought fuel on the weekends in months. Page 1 of 9
2 On the weekends alone the airline bought fuel as follows: January 2011 $ February 2011 No Fueling March 2011 $ April 2011 $ May 2011 $98.00 June 2011 $ July 2011 $ August 2011 $ Commissioner Paxton asked if he is saying the only business he gets is from the airline. There are other aircraft that can potentially come in for fuel. Ms. Grafton said Mr. Lowe may be coming to the board with a presentation. B. Commissioner Sanders said I don t know about anybody else but I will read the meeting minutes and status report on . It is nice to have these packets when I get here but given tight budgets, I don t see the need to have these packets delivered to us at home, we read it all on the . We can have a copy at the time of the meeting. All airport commission board members agreed to stop the packet delivery and provide a paper copy at time of meeting or use projector as proposed by Ms. Grafton. 5. Status Report for Del Rio International Airport Questions & Comments Item 1 (*Status Report) Airport Staffing Ms. Grafton said we hired 2 part-time custodians one started today the other starts on Tuesday. Item 2 (*Status Report) Airline Service Load for Del Rio Commissioner Sanders said looking at the load factors vs decrease of PFC it seems like there was a slight difference. Ms.Grafton said we get a passenger facility charge for any outbound paying passenger. If you look at the PFC for the month of July it is down 4.6% compared to last year, this year the passenger load is 44.3% with outbounds at718. Commissioner Paxton said another person commented to him how expensive it is to fly out of Del Rio vs San Antonio he saved $ flying out of San Antonio. Ms. Grafton asked if it was a short notice ticket. Commissioner Paxton said yes it was a short notice ticket. Commissioner Bolstead said his Corporate Travelers are flying into San Antonio, mostly because of cost and reliability. Ms. Grafton said the reliability performance was 50% up from 41% on the inbound and 62% outbound which is down 1 point from the month before. Commissioner Paxton asked Ms. Grafton who keeps track of the arrival times. Ms. Grafton said the procedure is the agent is out front and as soon as the wheels touch the ground they clock it into their dispatcher computer within 3 minutes. Commissioner Paxton asked if we were over 10,000 passengers for the year. Ms. Grafton said we are at 5092 for the outbound we need 10,000 for outbound passengers. We may not meet the 10,000 passengers this year but I have discussed it with the FAA. There are airports that are Page 2 of 9
3 suffering but are keepers to the FAA and we are one of the. In hard economic times the FAA does allow for recovery time. Item 6 (*Status Report) FAA Grant $2,382, Commissioner Gallaher questioned; we only got one qualified bid from Reece Albert, Ms. Grafton stated yes. The FAA is satisfied with our process and has agreed on awarding the contract to Reese Albert if the City chooses. We sent the Grant application on the 11 th of August, last night council approved ratifying that action and approving in advance the authorization to accept a grant offer not to exceed 2.4 million, once received. Council also approved amendment 1 for grant 11 to cover the overages on the terminal an additional 74, that the FAA provided to us to cover these overages. Council also awarded the contract for the lighting vault in the amount of 124, Item 7 (*Status Report) Airport Improvement Plan (AIP) Commissioner Gallaher asked Ms. Grafton if she has gotten a hold of Ryan Hill. Ms. Grafton said she has not been able to get a hold of Mr. Hill he won t answer his phone calls, he doesn t return my calls or s, and we also sent him two certified return receipt letters. I have not received the return receipts back from him. The sub contractors are also having the same problem. We sent out the letters on Friday via certified return receipt as well as a mirrored stating he will not receive any checks until the project is complete. There is a 40, request for pay that is being held by the city. Item 14 (*Status Report) Air Cargo Facility Ms Grafton provided a copy of the presentation and stated this is the presentation we put together for the council meeting last night. We had one council member not comfortable about only having a 10 year lease with a 20 year obligation. He asked if I included the taxes for the million dollar building that would be generated for the city; I responded no I did not. Our financial advisors were there. They reported that they didn t have a lot of information other than it was an air cargo facility at the airport and the total amount it would cost to build. They provided information on revenue bonds which was at a 6.25% rate. This is considerably higher than the city traditionally receives bonds, they have been asked to do some more research and make a financial recommendation on September 13, I have been asked to go ahead and bring back the letter of interest that Fed Ex will present to us by the end of this week. 6. Schedule Next Meeting- The next meeting is scheduled for September 28, 2011 at 6:00 p.m. 7. Adjournment- Commissioner Nunley made a motion to adjourn with Commissioner Paxton offering a second. The meeting was adjourned at 7:01 p.m. by unanimous vote Claudia Chavarria, Airport Clerk Garry Bolstead, Chairman Page 3 of 9
4 STATUS REPORT FOR THE DEL RIO INTERNATIONAL AIRPORT 1. Airport Staffing August 24, 2011 Assistant Airport Manager Vacant Hire Freeze for Budget Year Part-Time Custodian-Vacant Hire Freeze for Budget Year 2 Part-time Custodians-(Funded) interviews scheduled for 08/19/11 2. Airline Service Load Factors for Del Rio 61 revenue flights were scheduled in/out of which 60 flights arrived and 61 flights departed. The zero on time performance was 50% up from 41% inbound and 62% down from 63% outbound. The on time plus.05 performance was 58% up from 49% for inbound and 67% up from 63% for outbound. No incidents or accidents were reported for this period. Reliability of services is improving. Month Inbound Outbound Month Inbound Outbound + or -Total Passengers Carried Load Factor % January January % February February % March March % April April % May May % June June % July July % August August 11 September September 11 October October 11 November November 11 December December 11 Average Average Passengers Carried Passengers Carried /- Passengers Carried Average Load% 15,813 10, % Page 4 of 9
5 3. Fuel flow fees Pico s Month Amount Month Amount $ Appx % January 10 $3, January 11 $2, $ % February 10 $2, February 11 $2, $ % March 10 $3, March 11 $6, $2, % April 10 $2, April 11 $3, $1, % May 10 $3, May 11 $2, $ % June 10 $4, June 11 $1, $2, % July 10 $2, July 11 $1, $ % August 10 $2, August 11 September 10 $2, September 11 October10 $3, October11 November 10 $3, November 11 December 10 $6, December 11 Revenue $21, Revenue $21, Revenue +$98.62 Average % +1.0% CBP Air Ops Month Amount Month Amount $ Appx % January 10 $0 January 11 $ $ % February 10 $ February 11 $ $ % March 10 $0 March 11 $ $ % April 10 $ April 11 $ $ % May 10 $ May 11 $ $ % June 10 $ June 11 $ $ % July 10 $ July 11 $ $ % August 10 $ August 11 September 10 $1, September 11 October 10 $ October 11 November 10 $ November 11 December 10 $ December 11 Revenue $3, Revenue $5, Revenue +$1, Average % % Page 5 of 9
6 4. Car Rental Revenue Rental Car Revenue B&W Month Amount Month Amount $ Appx% January 10 $0 January 11 $0 $0 0% February 10 $0 February 11 $0 $0 0% March 10 $0 March 11 $0 $0 0% April 10 $0 April 11 $0 $0 0% May 10 $7.99 May 11 $0 -$ % June 10 $0 June 11 $0 $0 0% July 10 $0 July 11 $0 $0 0% August 10 $0 August 11 September 10 $0 September 11 October 10 $0 October 11 November 10 $0 November 11 December 10 $0 December 11 Revenue $0 Revenue Revenue -$7.99 Average % -100% Rental Car Revenue Hertz Month Amount Month Amount $ Appx. % January 10 $1, January 11 $ $ % February 10 $1, February 11 $ $ % March 10 $1, March 11 $1, $ % April 10 $1, April 11 $1, % May 10 $1, May 11 $1, $ % June 10 $ June 11 $ $ % July 10 $ July 11 $ $ % August 10 $1, August 11 September 10 $ September 11 October 10 $1, October 11 November 10 $ November 11 December 10 $ December 11 Revenue $9, Revenue $6, Revenue -$2, Average % -29.9% Page 6 of 9
7 Rental Car Revenue Enterprise Month Amount Month Amount $ Appx. % January 10 $ January 11 $ $ % February 10 $ February 11 $ $ +47.3% March 10 $ March 11 $1, $ % April 10 $ April 11 $ $ % May 10 $ May 11 $ $ % June 10 $ June 11 $ $ % July 10 $ July 11 $1, $ % August 10 $ August 11 September 10 $ September 11 October 10 $ October 11 November 10 $ November 11 December 10 $ December 11 Revenue $5, Revenue $5, Revenue -$13.65 Average % -1.3% 5. Passenger Facility Charges Month Amount Month Amount $ Appx. % January 10 $0 January 11 $1, $1, % February 10 $0 February 11 $5, , % March 10 $21.95 March 11 $2, , % April 10 $5, April 11 $2, $2, % May 10 $5, May 11 $3, $2, % June 10 $5, June 11 $2, $2, % July 10 $5, July 11 $2, $2, % August 10 $4, August 11 September 10 $4, September 11 October 10 $4, October 11 November 10 $4, November 11 December 10 $4, December 11 Revenue $21, Revenue $21, Revenue +$ Average % +18.3% Page 7 of 9
8 6. FAA Grant $2,382, Grant Application for the amount of $2,382, was submitted on August 11 th for the projects; Construct Taxilane G, Construct Air Cargo/Corporate/General Aviation Apron and Reconstruct Taxilane H and one GA Taxilane, Phase 1 (Design) 7. Current FAA Grant Funds Available $281, Airport Improvement Plan (AIP) (Terminal Building) Six punch list items remain incomplete: 4 threshold issues, 2 keying issues After the rain occurrence on August 12 th a letter was sent to Mr. Hill providing a second notice of roof leaks and flooding issues due to improper thresholds installed. This letter was sent return receipt requested. Staff has attempted contact with Mr. Hill via phone several times to no avail. To Date no action has been taken by Mr. Hill. In accordance with contract specifications SC-31 (Payments Withheld) and in coordination with GRW staff is preparing a letter for the City Manager to issue, if so desired, providing notice of payment being withheld due to defective work not being remedied. 9. AIP (Master Plan/ALP) 70% GRW and Staff have begun work on the Draft Airport Rules and Regulations which will be presented to the Commission once in final draft form for review 10. AIP ( Wildlife Hazard Assessment)Est. 58% On August 2 nd the ninth survey period occurred. During this visit 5 White Tail Deer were observed adjacent to the perimeter fence how ever after a check of the fence it was found to be impermeable. The avian activity had significantly decreased from the July observation in part due to the hot dry conditions. 11. AIP (Pavement Evaluation)Est. 100% The pavement analysis is complete and is available for review at the airport office. 12. AIP (Design Taxi-lane G and New Apron)Est. 100% 1 Bid was received Bids were opened August 1 st 3:00 p.m. City Hall Council Chambers Reese Albert was the only bidder at $2,085, and has been recommended for award contingent upon receiving Grant Page 8 of 9
9 13. AIP (Design -Construct Electrical/Comm Vault)Est. 100% 3 Bids were received Bids were opened on August 1 st, 2:00 p.m. City Hall Council Chambers The apparent low bidder was F&W Electric with a bid of $124,000 A Resolution to award bid will be presented to City Council August 23rd 14. Air Cargo Facility (Attachment 1) Staff will be providing a presentation to City Council on August 23 rd. 15. Corporate Development A design contract was negotiated and notice to proceed was issued to GRW by a private company to design a 10,000 sq ft corporate hangar with a 10,000 sq ft apron to be constructed along the edge of Taxilane G and the southern edge of the new apron. 16. Other Development Concessionaire (No New Information) Staff recommends an RFQ be issued in the near future. This RFQ would require the concessionaire provide the airport with a concept drawing of the area along with menu selections and prices as well as samples be provided to a selection committee as yet to be determined. 17. RAIL portion of the MALSR (No New Information) Staff contacted the FAA in Ft. Worth related to another matter at which time the FAA indicated that there was some forward movement on attempting to get the replacement circuit boards for the RAIL. 18. PAPI Lights (No New Information) Both 13/31 require alignment to some degree and then a flight check prior to certifying them for operational use. PAPI 13-. Slight alignment required then flight check PAPI 31 Full alignment required then flight check Page 9 of 9
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