CITY OF CORPUS CHRISTI Aviation Department 1000 INTERNATIONAL DRIVE | CORPUS CHRISTI, TX 78406 (361) 289-0171

PRE-BID MEETING MINUTES OPERATION OF NON-EXCLUSIVE FOOD AND BEVERAGE CONCESSIONS Date: April 17, 2013 Time: 10:30 a.m. Location: Corpus Christi International Airport, Aviation Conference Room Attendees: (See attached attendees list) Enrique Castillo, Assistant Director of Aviation, opened the meeting at approximately 10:30 a.m. He welcomed all attendees, and asked everyone to be sure to sign the sign-in sheet. It was noted that Irene Fuentes would be taking minutes. Mr. Castillo introduced John DeCoster and Mike Bown, with Trillion Aviation (Airport Business and Air Service Development Consultants), as well as, Mario Tapia, Aviation Finance Director. Mr. Castillo advised that a tour of the venues would be provided, and then a Q&A session would follow.

Mr. Castillo advised that two (2) of the venues are pre-security, and one (1) post-security. He advised that one of the pre-security venues will be relocated post-security. Phil Colquitt, with Subway, asked what the general reason was for relocating the restaurant, and Mr. DeCoster replied that after 9/11, security does not allow food from pre-security restaurants to be taken post-security. Mr. DeCoster stated that they have found that the increase in sales volumes in post-security restaurants is much higher than pre-security restaurants. Mr. DeCoster advised that the Airport has a plan already in place for the relocation, and that this would be the perfect time for relocation with the coming of a new vendor(s). He further advised that the incumbent is not participating in the RFP.

Mr. Castillo advised that the Airport is requesting an operator to do full service, coffee shop, and snack shop. He advised that the RFP has been structured so that operators can bid on any and/or all venues. It was noted that the Airport has over 600 badge holders who conduct business at the Airport on a daily basis, such as airline employees, rental car employees, FBO employees, Airport staff, etc. Mr. Castillo advised that the Airport has a Coast Guard Development Project which will be relocating 250 people from Naval Air Station Corpus Christi to the Airport; and the FedEx Ground building located at the front of the Airport has approximately 220 people; therefore, there is a significant amount of traffic at the Airport on a daily basis. He advised that enplanement information was included in the RFP. Mike Reilly, with Oakwells, asked what the timeline is for relocating the restaurant, and Mr. Castillo replied that it is a timing issue that will be phased in accordingly. Mr. Castillo advised that the modification for the restaurant is minimal, and will only require a glass wall to be moved, and a wall put up in the kitchen to make two (2) individual kitchens, and access control has also already been put in place to help minimize the transition period. John Fellows, with Inverness Acquisitions, asked how much traffic is received from FBO’s, and Mr. Castillo replied that there are 66 based aircraft at the FBO’s; however, he would provide more information during the response portion. Mr. Castillo advised that included in the RFP was the Airport’s General Activity Report which identifies general aviation traffic information. He stated that there are several companies all around the Airport which operators could provide catering services for, such as Baker Hughes. Mr. DeCoster commented that catering services are encouraged, and can be provided to other facilities located at and around the Airport. It was noted that the operators would be allowed to tour the venues and take pictures. Melissa Vera, with Subway Development, asked if the measurements for each of the venues would be provided, and Mr. Castillo replied that he would obtain the information to provide to all Attendees. David Shelton, with Air Host, Inc., requested PDF copies of the three (3) locations or CAD drawings, and Mr. Castillo advised that they would be put on the website available for download.

Meeting Minutes – April 17, 2013 Pre-Bid Meeting – Operation of Non-Exclusive Food and Beverage Concessions

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Airport Staff, Trillion Aviation Consultants, and Attendees toured the three (3) venues.

o Mr. Shelton asked who the current gift shop concessionaire is, and Mr. Castillo replied that HMS Host is the current concessionaire, and a renewal lease had just been signed with them.

o Mr. Castillo showed the group the glass wall that would be relocated to make the full-service restaurant post-security. He commented that it would be up to the operator whether they wanted to keep the wall up or not, once the restaurant was relocated.

o Mr. Castillo advised that vending machines are not part of the RFP. o Mr. Castillo showed the group the shared restaurant and coffee shop kitchen. He advised

that when the full-service restaurant is relocated post-security, a wall will be constructed split the kitchen and make two (2) standardized kitchen for each of the venues. He advised that drop-down gates are currently installed to secure the restaurant.

Airport Staff, Trillion Aviation Consultants, and Attendees returned to the Aviation Conference

Center for a Q&A session.

o Mr. Castillo advised that one of the attendees asked during the tour what equipment would be stay, and what equipment would be taken. He stated that he would research this information; however, a list of equipment was provided in the RFP, and he will confirm that the equipment listed would be equipment would be left in the venues. Mr. DeCoster advised that the exit plan is being negotiated with the current operator by two (2) other Airport Staff, and they will verify with those individuals which equipment will stay, and provide that information in the responses.

o Mr. Colquitt, with Subway, asked if the $700,000 gross revenue information provided in the RFP was for all three venues, and Mr. Castillo replied that the amount was for all three.

Mr. Castillo reviewed the RFP with the group.

o Section 2, The proposed timeline of the RFP is as follows:

Written questions due by April 19, 2013 at 4:00 p.m. and submitted electronically. Written responses to all questions regarding the RFP due by April 24, 2013 at 4:00 p.m. Proposals due on May 3, 2013 at 4:00 p.m. Recommendations to Airport Board submitted on May 15, 2013 at 3:30 p.m.

o Section 7, Evaluation of Proposals

Mr. DeCoster advised that the evaluation team will consist of Airport Staff and City of

Corpus Christi Staff. He stated that Trillion Aviation will not be part of the evaluation team. He advised that the evaluation team will review proposals, and make recommendations based on criteria as shown under this section. Mr. DeCoster advised that the recommendations will be presented to the Board for approval, and then submitted to the City Council for final approval. He encouraged the group to include anything they feel will make them different from the others, and to elaborate on innovative ideas. It was noted that most of the Airport customers are primarily business travelers. Mr. DeCoster asked the group to use their experience on what menu items work best for their customers, whether it is a retail customer or an airport customer. He stated that for those operators who will be proposing on the restaurant with the bar will have to obtain their own liquor license, and if they feel they are unable to get a license in time to start the venue, they should have a workout plan, for example, subcontracting with a caterer who has a liquor license. He advised that all of this will factor into the evaluation teams ranking of proposals.

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o Section 11, Instructions of submittal of proposals and qualifications.

Mr. Castillo advised that this section includes all information on how to submit proposals, formats for proposals, what documentation is needed, who the proposals need to be addressed to, etc.

Section on award of agreements includes the process taken for approval of recommended proposals. He advised that the evaluation team will review and rank proposals, recommendations will be made to the Airport Board, and then it will take approximately two to four weeks before the item will be placed on the City Council agenda. Mr. DeCoster asked that operators to base proposals on date of award. Mr. Castillo advised that this item will be a two reading agenda item, so it will go before City Council on two different dates.

o Mr. Reilly, with Oakwells, asked when the current operator would be vacating, and if they are on a 30, 60, 90 day letter to vacate, and Mr. DeCoster advised that the current operator will vacate as soon as a replacement has been selected and approved.

o Mr. DeCoster advised that if operators are interested in some of the items that are not on the list of items that will be left in the facility, he strongly encourages the operators to request contact information for the current operator and negotiate cost for the items.

o Mr. DeCoster encouraged the group to add in additional narratives, plans, etc, to the proposal

form. o Mr. Colquitt, with Subway, asked about Chili’s and Whataburger. Mr. Castillo advised that

they were past operators, and were located at the Airport before he was hired. Mario Tapia advised that in Chili’s was the original operator, and when they decided not to renew the lease, Whataburger came in as the temporary operator, until the current operator took over.

o It was noted that the term of the agreement is for five (5) years, with an option to extend for

three (3) years. Mr. Castillo advised that once the eight (8) years is up, the operator will be eligible to submit a proposal again.

The meeting closed at approximately 11:30 p.m.