Hi! I'm Keith and I will be live-tweeting today, Wednesday, January 26, 2022, Cleveland City Council's Transportation & Mobility Committee ("T&MC") that starts at 10:00 AM for @cledocumenters#CLEdocumenters & @NeighborUpCle.
The Meeting is Live and is accessible via a Youtube stream,
About T&MC
W# = Ward number
CM" = council Member
Chair of the Meeting: W3, Kerry McCormack
Vice Chair: W17, Charles Slife
Members
W2, Kevin L. Bishop
W4, Deborah A. Gray
W16, Brian Kazy
W12, Rebecca Maurer
W14, Jasmin Santana
W17 CM Charles Slife and W4 CM Deborah Gray are not present.
W3 CM Kerry McCormack has stated "We don't need a quorum today as there is no legislation."
As noted in the agenda, the meeting will be a "presentation from Cleveland Department of Port Control Director Robert Kennedy about airport operations and the impact of COVID-19 at Cleveland Hopkins International Airport."
Roll Call has occurred, Slife and Gray has requested an excused absence that has been acknowledged.
Chair W3, McCormack starts with a reflection on the name change of the committee,
"We will of course be working with the airport system and the previously defined role of this committee very closely, but we will be diving further into other topics such as public transportation"
W3, McCormack continues,
"multi-modal mobility, traffic comming, and other important elements that means to have an equitable and comprehensive transportation system in the City of Cleveland."
W3, McCormack recommends all members of council attend the Burke & Hopkins airport tour especially as they work on the Masterplan for the airport.
He then has T&MC members introduced themselves.
Department of Port Control members introduce themselves.
Dennis Kramer, Chief of Planning and Engineering (left)
Erin ? something about city council & coordinating (off screen and has no mic, is hard to hear)
Robert Kennedy, Director of Port Control (right)
Director Kennedy starts his presentation, jumping right in with a slide detailing pre-covid, covid years, and a forecast for 2022.
A 60% drop between 2019 and 2020. "Started coming back in 2021).
2022 Forecasted 9,000,000
Per Dir. Kenney, no City Airport Employees were forced out. He notes that "Management structure is shrinking so we are not top heavy."
McCormack asks for a clarification on the difference between City employees and Airport employees.
City Airport Employees "come through Department of Port Control and ... are on our budget book."
All the Airlines hire independent of the city.
On the change since 2019, "The numbers aren't coming back as they should."
Dir. Kennedy on the economic impact of the airport,
"5.2 and 6 billion dollars worth of economic impact a year. Unless we can get employees, it diminishes economic vitality."
On employee loss, "My goal this year is to get above 5,000."
Dir. Kennedy, "Cleveland did better than the national average which is good."
Dir. Kennedy, "Airports have life cycles, ups and downs. ... The organization has to adapt to that. ... That made some of the carriers devasted in 2020, start to flex more investments."
On Airline Carrier investments, "American has been consistent. United has come up and down. Spirit has recently double their space. Once we get through Omicron, we may see additional good news. Delta has been eyeing Cleveland and what we could do for them. "
On Passenger Traffic during COVID,
"No one had a secret formula to this. I've been around this business for a lot of decades, never faced this. Been through 9/11, I've been through recessions, through bankruptcies - blah blah blah. Never this."
Dir. Kennedy, "I think we have seen the worst of this."
He shared that the Cities response to the airport carriers has been "industry leading and it builds the credibility and the partnership. We are coming to them for 2 billion dollars very shortly, 800 million to start."
On the increase of consumers choosing Hopkins Airport.
"There are a lot of reasons for this. We've been very competitive on our rate marking, we try to make it easy for them to do business with us, and we are very transparent in our dealings."
Dir. Kennedy, "Cleveland should not take a backseat in the competition for air service and economic vitality. And, we can do it. We have a path an a plan. ... The greatest value of any airport is what happens in the community outside, the economic vitality and opportunity."
McCormack asks about improvements made at the airport prior to COVID.
Dir. Kennedy, "In 2018 we were designated...most improved in customer service and we keep on focusing customer service."
Dir. Kennedy, "Our bond ratings...we've maintained our A ratings and that's going to mean the difference in tens of millions of dollars in the financing. Our carriers with transparency...has been good. Last year, the FAA has released us from our Civil Penalty. ..."
Dir. Kennedy, "They gave us our letter that said you guys have done what you said you will do. ... You've established just safety culture. ... We've adopted international and national standard recommended practices."
Chair McCormack asks the Director to highlight the "sacred relationship" with the carriers.
Dir. Kennedy, "Airports are for the most part enterprise agencies. Carriers take all the risk. No risk transfer to the municipalities. ..."
Dir. Kennedy, "2018 was the first time that airport was not paying the majority of costs. We generated other revenue from parking, leases, and such that reduced what they would be on the hook for. The more we work on that, the more they say we are a good partner. ...
Dir. Kennedy, "When you go to indebt the airport, you can't do it without the carriers approval. I've got a big ask coming." [Referencing the upcoming 800 million of 2 billion being sought to invest in the Airport.]
Dir. Kennedy, "That partnership with the carriers is important. Next year we are going to ask for the carriers to take the risk on the bonding of 800 million dollars."
Chair McCormack "I highlight that for the viewing public and the committee to understand that this is a different beast than the public works department where we provide a budget and they provide a service. This is a more complicated model."
W Kazy with a nice sweater, "One of the biggest things we keep an eye on is passenger traffic. Can you touch on the 9 million expected for 2022, how many of those are Cleveland residents leaving to go somewhere versus those visiting the city versus layovers?"
Director Kennedy, "I don't know. The data doesn't splice it that fine."
Kazy, "How does Hopkins compare to other midwest city airports comparable in size? I'm not talking Akron-Canton. I'm talking Detroit, Pittsburgh. Cincinnati"
Dir. Kennedy, "Outstanding question. The first 3 quarters of 2021 we were ahead of Pittsburgh and Cincinatti. Indianaoplis did better. Well above Columbus."
Dir. Kennedy, "Detroit is in a different category. We are a medium hub airport. Detroit is a CadX airport, it's a major hub. It represents 1% of all airport travel in the country."
Kazy asks the Director to reflect on the advantages and disadvantages of being a major hub such as Detroit versus a medium hub."
Dir. Kennedy, "The major advantage is you get more destinations. We did have a hub, but technology and patterns have changed so you don't need so many hubs. There's been consolidation. The disadvantages is that it costs more. ... The business community it really helps."
Dir. Kennedy continues, "To the average citizen, it hits them in the pocketbook." He concludes, "The major hub helps but it also hurts. Will we be a [major] hub again? Highly unlikely. I don't think we will be a hub, but I believe our best days are ahead of us."
W12 CM Rebecca Maurer questions why we are out pacing the national average?
One, Clevelanders like to travel. They respond well to additional air service.
She follows up "Are you showing any strains with what is expected to get done?"
Dir. Kennedy, "I have a meeting next week with Civil Service...The work they do is dangerous work...We did not have the luxury of shutting the building down..."
"My cleaning people were on the front line of this. So, I'm meeting next week to talk about airport specific jobs, what we need, compensation, and recruitment because we don't compete. Some of the problems were not malicious but people did not know what they did not know."
Kennedy waxes about goals and plans and wishes.
W12, Maurer responds, "I think that answers my questions. There is strain being shown. In my conversations with some of the janitorial workers who are SECU1 they talk about double shifts and not being covered if they call off."
Kennedy rebuts, "Absolutely! ... However, if you look at our FMLA and our call offs they're significant. ... I want to put a free daycare at the airport. I think our carriers will support it. ... I want to give free RTA passes to new employees. You don't park at the airport..."
Kennedy continues reflecting on the employees and staffing issues among current staff,
"The people strained most working are the people who have conditionally been held out the most. ... Why not give them increased hazard pay?"
Dennis Kramer now reviews part 2 of the presentation concerning the Masterplan.
These are some of the vision points of the Masterplan. It kicked off in Fall of 2019...All airports that received Federal funding need to have a Masterplan per the FAA. It is a 20-year planning horizon on what we need to do for the airport. It is a very prescribed process."
Kramer, "The four main things we looked at are our Airfield, Terminal, Landside, and Airspace...We found major deficiencies in our Terminal and Landside."
Kramer, "When we hit the 10 million passenger levels, our facilities are stressed. Obviously, we have to position ourselves for growth...We want to preserve our identity...and people to know they're in Cleveland."
Kramer, "A Masterplan has Planning Activity Levels (PALs). They're passenger numbers that are triggers if you have this many passengers, you need this and these projects to kick off."
Kramer, "Big major projects kick off in PAL 2 when there are 10.9 million people."
The below chart highlights major Terminal deficiencies identified by the Department of Port Control. The biggest issue appears to be the lack of physical space for the amount of passenger traffic.
Landside Facility deficiencies and requirements
Kramer, "We know our roadway configuration is not configured optimally. ... That's where we get backups. We need to improve our walkability. We need more walkabout public parking spaces and more rental car storage spaces. "
Kramer, "A major deficiency is having our rental car facility off campus...Part of the plan is to bring the rental car facility back no campus in additional to increase its size. Finally, improve RTA accessibility and convenience."
W3, McCormack interrupts, "This is one of my passions and is one of the intersections of this committee too. It is easier to get from the city center of Cleveland, Ohio to our airport than it is in Madrid, Spain, NYC, or Chicago."
McCormack, "We have such an asset in our Red Line that takes you inside the airport...I know I take it. No traffic in 20 minutes, really an asset to Cleveland that we have that."
Dir. Kennedy, "I had a conversation with India Birdsong [General Manager & CEO of GCRTA] last week about how we do more."
Kramer, "We developed a plan with a phased approached...and a financial model to fit that approach. We used a similar model for the one we use for our Airport finances."
Kramer, "The Master Plan doesn't get into great detail about the roadway around the Airport."
Kramer, "We looked at how our customers accessed the Airport...And, where we ended up is a direct connection I-71 to our terminal."
W1 CM Jones, "Right now we come off Snow Road...You'd be building a new runway from the airport to the highway?"
Kramer, "Yes, it would be an elevated roadway structure directly from I-71 There'd be dedicated on and off ramps. It would not be from Snow Road."
W1, Jones, "Are we gong to push back the campus for the on and off roads?"
Kramer, "No, we shouldn't have to."
PAL 2 phase encompasses the 800 million.
Jones, "It doesn't seem to be that much of a difference. I know it's a graphic here."
Kramer, "The striped areas."
Committee scrutinizes PAL 2 phase proposed development and demolition.
Dir. Kennedy explaining propose PAL 2 changes to Hopkins Airport.
"New B will be built. Old B removed, D will be removed, C will remain. Terminal will be expanded. Orange will be the rental car facility...This may come area."
Dir. Kennedy on relocation of rental car companies, "It is being pushed by customers and rental car companies."
@KerryMcCormack1 reminded Director to use microphone for us at home.
Clarification about changes was driven by W1 CM @CleveJoeJones for the questioning.
Thanks!
Kramer continues with PAL 2.5 which includes a new roadway on campus [color orange].
PAL 3 will include the demolition of their current smart parking garage and build a new larger parking garage. Concourse C will be added at this phase.
PAL 5, current, not new, concourse C demolished with the construction of a new concourse D. There will be an additional expansion of the terminal as well as a completion of the elevated roadway system to I71.
McCormack enquires about timeframe of project.
Kramer responds, "20 years."
Director Kennedy, "I worry about the financing then the clock starts ticking. The first 800 million...commitment [by the carriers] is sometime in 23 months."
Financial Summary of the PAL phases.
Jones and McCormack enquire about funding sources.
Jones, "Will we able to get the county and state to help us fund?"
McCormack, "Will the Federal Government participate?"
Dir. Kennedy answers, "We grab every penny we can."
W1 CM Joe Jones enquires about funding for Hopkins Masterplan development with Port of Control Director Kennedy
Kramer reviews what's happening now including upcoming demolition requests and FAA interactions.
Internal Preparations slide
Kramer reviews what is happening internally.
What's Next for the Master Plan slide
Near-Term Actions slide
Director Kennedy discusses the near-term actions. There will be a pivot from survival mode to a growth mode.
"Everything that we do is meaningless if the stakeholders and the community aren't engaged."
Director Kennedy continues discussing the near-term actions.
Director Kennedy concludes and Chair McCormack offers praise.
Cleveland City Council's Transportation Committee Wednesday, January 26, 2022 Meeting adjourned at or around 11:45AM.
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