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[00:00:04]

THANK YOU.

UM, SO GOOD MORNING, EVERYONE.

IT IS 9 35 ON JUNE 16TH.

UH, MY NAME IS ALISON ALTER.

I AM THE CHAIR OF THE AUDIT AND FINANCE COMMITTEE,

[CALL TO ORDER]

AND I WILL CALL US TO ORDER, UM, PRESENT ON THE DIET, THE VIRTUAL DIETS, OUR VICE CHAIR POOL AND COUNCIL MEMBERS TOVO AND KELLY.

UM, I'M NOT SURE WHEN THE MAYOR'S JOINING US OR NOT.

UM, WE HAVE ONE SYSTEM CITIZEN COMMUNICATIONS SPEAKER THIS MORNING.

UM, MS. SYNOVIA, JOSEPH IS MS. JOSEPH ON THE LINE.

OKAY.

SO MS. JOSEPH, YOU HAVE THREE MINUTES.

GOOD MORNING.

GOOD MORNING.

UH, CHAIR, ALTAR AND MEMBERS.

I'M SYNOVIA.

JOSEPH.

MY COMMENTS ARE SPECIFICALLY RELATED TO ITEM FOUR.

THAT'S THE ENVIRONMENTAL COMMISSION, BYLAWS AMENDMENT.

AND I JUST WANTED TO OBJECT TO THAT AND ASK YOU, INSTEAD OF AMENDING THEIR BYLAWS TO REMOVE THE COMMITTEES THAT YOU ACTUALLY INCLUDE A TITLE SIX URBAN GROWTH POLICY, WATER QUALITY, AND ENVIRONMENTAL JUSTICE COMMITTEE, THAT WOULD BE A STANDING COMMITTEE THAT WOULD HAVE DISCUSSION AND POSSIBLE ACTION.

MY COMMENTS ARE GERMANE BECAUSE WE HAVE SEVEN DAYS REMAINING FOR THE PREPARATION OF AN ENVIRONMENTAL IMPACT STATEMENT FOR THE CAPITAL METRO ORANGE LINE PROJECT IN AUSTIN, TEXAS.

SO IF ANYONE IS LISTENING, THEY CAN GO TO THE FEDERAL REGISTER AND SUBMIT A FORMAL COMMENT.

I THINK IT'S IMPORTANT FOR YOU TO UNDERSTAND, AS YOU'VE HEARD ME SPEAK ABOUT BENZENE BEFORE, SPECIFICALLY IN THE AREA AT FM 9 69 AND US 180 3, I HAVE A SPECIFIC EXAMPLE WHERE THAT AREA IS ACTUALLY ZONED INDUSTRIAL, BUT WHEN THE PLANNING COMMISSION REVIEWED THAT PARTICULAR ITEM, IT'S SIMPLY WENT ON CONSENT AND I'VE HAD JUST, AS I THINK IT WAS COUNCIL MEMBER POOL THAT JUST MENTIONED THE LINKS.

I'VE HAD A TIME WITH ANDREW RIVERA AND TRYING TO MAKE COMMENTS ON THESE CASES AS RECENT AS LAST NIGHT BEFORE ZONING AND PLANNING.

AND SO IT IS IMPORTANT FOR THE PUBLIC TO BE ABLE TO MAKE COMMENTS ON THESE BENZENE ZONES AND THEIR ENVIRONMENTAL IMPACTS LARGELY IN THE MINORITY COMMUNITIES.

I WANT TO CALL YOUR ATTENTION TO A BOOK BY A PROFESSOR FROM TEXAS SOUTHERN UNIVERSITY, ROBERT BULLARD, IT'S CALLED THE WRONG COMPLEXION FOR PROTECTION, AND IT ACTUALLY TALKS ABOUT HOW THE GOVERNMENT RESPONDS TO DISASTER AND ENDANGERS AFRICAN-AMERICAN COMMUNITIES.

I ALSO WANT TO CALL YOUR ATTENTION TO, UH, THERE'S A MAP ONLINE REPRESENTATIVES.

WERNER IS ACTUALLY WIENER THAN ME TO MISPRONOUNCE HER NAME.

IT'S TEXAS ENVIRONMENTAL JUSTICE EXPLORER, AND IT'S, UM, TALKING ABOUT THE NEED FOR TEXAS, UM, COMMISSION ON ENVIRONMENTAL QUALITY TO ACTUALLY HAVE AN ENVIRONMENTAL JUSTICE, UM, ARM AS WELL.

AND THEN LASTLY, I'LL JUST, UH, CALL YOUR ATTENTION TO THE FACT THAT 80% AREA MEDIAN INCOME IS THE NEW RED LINING.

AND SO WEST OF LOOP ONE, UH, YOU DON'T HAVE AS MANY ISSUES AS WE HAVE IN EAST AUSTIN.

AND I WILL JUST, UH, CALL TO YOUR ATTENTION THAT THESE BUS ROUTES, AS WELL AS PROJECT CONNECT, THEY ALL ARE RUNNING IN TANDEM.

AND SO I JUST WANT TO CALL YOUR ATTENTION TO JANUARY 9TH, 2017.

WHEN YOU FIRST TESTIFIED BEFORE CAPITOL METRO, YOUR FIRST DAY IN OFFICE, THAT BUS THAT YOUR SON RELIES ON OVER THERE BY O HENRY MIDDLE SCHOOL, NUMBER 18 LAKE AUSTIN BOULEVARD ACTUALLY RUNS OVER TO THE EAST SIDE, BUT IT'S 0.8 MILES AWAY FROM THE AREA THAT I JUST DESCRIBED, FM 9 69 AND 180 3.

AND SO I WANT YOU TO UNDERSTAND FROM A PERSONAL PERSPECTIVE THAT THIS IS INSTITUTIONAL RACISM AND SYSTEMIC INEQUITIES AT ITS BEST.

AND I WOULD ASK YOU TO OPPOSE OR TO AT LEAST TABLE THE ITEM AND, UH, DISCUSS WHY IT'S IMPORTANT NOT TO HAVE THIS, UM, AS A, JUST A COMMITTEE, UH, WITH UPDATES BECAUSE IT DISENFRANCHISES THE COMMUNITY.

WE'RE NOT REALLY ABLE TO MAKE ANY COMMENTS WHEN IT'S JUST A COMMITTEE THAT GIVES UPDATES PERIODICALLY ENVIRONMENTAL IMPACT STATEMENT IS THE PROJECT CONNECT.

AND WHETHER THE FEDERAL GOVERNMENT ACTUALLY GIVES THE CITY OF AUSTIN, 45% OF THE $7.1 BILLION FUNDING.

AND IF YOU HAVE ANY QUESTIONS, I'LL GLADLY ANSWER THEM AT THIS TIME.

I THANK YOU FOR ALLOWING ME TO MAKE MY COMMENTS.

THANK YOU FOR JOINING US THIS MORNING, MS. JOSEPH, UM, AAV.

I UNDERSTAND THAT COUNCIL MEMBER NEEDS TO BE MOVED OVER IN YOUR WELCOME.

GREAT.

THANK YOU.

APPRECIATE THAT.

[1. Approve the minutes of the Audit and Finance Committee meeting of May 26, 2021.]

UM, SO OUR FIRST ITEM OF BUSINESSES, THE MINUTES FROM THE MAY 26 MEETING, UM,

[00:05:02]

CAN I HAVE A MOTION TO APPROVE THE MINUTES FROM COUNCIL MEMBER KELLY MOVES, COUNCIL MEMBER TOVO SECONDS.

IF THERE ARE NO OBJECTIONS, THOSE MINUTES WILL PASS.

THANK YOU.

[2. Discuss issues related to Austin-Bergstrom Landhost Enterprises, Inc. (ABLE) and the operations and financial information of the Hilton Hotel at Austin-Bergstorm International Airport (Aviation).]

UM, WE WILL NOW MOVE TO OUR SECOND ITEM, WHICH IS DISCUSSING ISSUES RELATED TO AUSTIN BERGSTROM LAND HOST ENTERPRISES, ABLE AND THE OPERATIONS AND FINANCIAL INFORMATION OF THE HILTON HOTEL AT THE AIRPORT.

UM, THIS BUILDS OFF OUR CONVERSATION IN MAY AT THE AFC MEETING.

UM, STAFF IS RETURNING TODAY TO PRESENT THE HISTORY OF THE HILTON AT THE AIRPORT PAST FINANCIAL PROFILE AND OPERATIONS PAST AND CURRENT GOVERNANCE IMPACT OF FAA RESTRICTIONS.

AND YOU KNOW, HOW WE GO FORWARD WITH OPERATIONAL AND STRUCTURAL ALIGNMENT OF THE ORGANIZATION AS A QUASI GOVERNMENTAL ENTITY OF THE CITY.

UM, SO, UM, MS. THOMAS, ARE YOU KICKING US OFF OR WE NEED TO MOVE SOMEONE OVER FROM THE AIRPORT.

GOOD MORNING, COUNCIL MEMBER.

WE SHOULD BE MOVING SOMEBODY OVER FROM THE AIRPORT FOR THAT PRESENTATION.

GREAT.

THANK YOU.

IT SHOULD BE ON MOMENTARILY.

I'VE SEEN THE REQUEST ASKING THEM TO BE MOVED.

OKAY.

AND JUST IN CASE THERE ARE ANY OTHER COUNCIL MEMBERS WHO ARE TRYING TO GET INTO THE MEETING, PLEASE TEXT ME.

UM, SO WE KNOW THAT YOU'RE TRYING TO DO THAT.

THANK YOU.

GOOD MORNING.

GOOD MORNING, TRACY THOMPSON AND MY COLLEAGUE RAJEEV THOMAS ALSO NEEDS TO BE MOVED OVER HE'S AT CO PRESENTER.

WE CAN BARELY HEAR TRACY AND CHAMBERS.

SO I'M WONDERING IF THAT'S THE SAME ON Y'ALL'S END OR THE BRONCOS.

YES, I WAS JUST GOING TO MENTION THAT IT WAS DIFFICULT TO HEAR HER.

IS THIS BETTER? IF I SPEAK UP LOUDER AND YOU HEAR, YEAH, NOW IT'S BETTER.

OKAY.

I'LL JUST PROJECT YOUR PRESENTATION VOICE.

I WILL USE MY PRESENTATION VOICE.

THANK YOU.

AND THERE'S RATIOS AS WELL.

SO IF, UH, THE COMMITTEE'S READY, WE'LL JUST GET STARTED.

WE'LL GO THROUGH THIS PRESENTATION TODAY, RAJIV THOMAS AND I, AND, UM, WE'LL BE PLEASED TO TAKE ANY QUESTIONS OF COURSE, AT THE END.

SO IF YOU COULD GO TO THE NEXT SLIDE, PLEASE.

SO INTRODUCING MYSELF AGAIN, MY NAME IS TRACY THOMPSON.

I DO WORK FOR THE CITY OF AUSTIN DEPARTMENT OF AVIATION.

I AM THE AIRPORT, CHIEF OFFICER OF ADMINISTRATIVE AND EXTERNAL AFFAIRS, ALSO THE INTERIM OFFICER OF DEVELOPMENT, OUR CAPITAL DEVELOPMENT PROGRAM.

AND I'VE BEEN SELECTED AS THE VICE PRESIDENT OF THE BOARD OF DIRECTORS WITH ME TODAY IS RAJIV THOMAS.

UM, MY COLLEAGUE WHO'S THE AIRPORT, CHIEF DEPUTY AND FINANCE, AND WE ALSO HAVE ON THE LINE, OUR CEO, JACKIE YAFFE.

SO NEXT SLIDE PLEASE.

SO TODAY, AND THANK YOU, UM, CHAIRMAN ALTAR THAT, UH, YOU TALKED ABOUT OUR LAST PRESENTATION.

SO TODAY WE ARE GOING TO TRY TO PROVIDE YOU SOME INFORMATION REGARDING OUR BACKGROUND, THE STRUCTURE AND OPERATIONS OF ABEL ABEL GOVERNANCE, AND A SHORT SLIDE ON LOOKING AHEAD, WHAT'S AHEAD.

IF THERE ARE OTHER TOPICS THAT WE DON'T COVER TODAY THAT YOU WOULD LIKE FOR US TO COME BACK AND PRESENT ON, WE'D BE PLEASED TO DO SO, BUT THAT'S WHAT WE'RE GOING TO TRY TO COVER TODAY.

SO NEXT SLIDE PLEASE.

AND THE NEXT SLIDE, PLEASE.

SO I'LL GIVE YOU A BRIEF HISTORY OF THE ACTUAL FACILITY ITSELF AND SOME OF THE DEMOGRAPHICS OF THE ACTUAL FACILITY ITSELF.

BEFORE I TURN THE MIC OVER TO REGIVE, YOU TALK ABOUT SOME OF THE STRUCTURE AND FINANCIAL, UH, BACKGROUND.

SO, UM, FOR THOSE OF YOU WHO'VE BEEN IN AUSTIN A. LONG TIME, A LOT LONGER THAN I HAVE YOU'LL KNOW THAT THE FACILITY ITSELF, THE BUILDING PART OF THE BERGSTROM AIR FORCE BASE, IT WAS THE HEADQUARTERS.

AND, UM, WHO KNEW AT THE TIME, THEN HE HAD SEVERAL DIFFERENT, UM, NICKNAMES, UH, INCLUDING THE LITTLE PENTAGON AND THE DONUT.

SO THIS IS A VERY UNIQUE STRUCTURAL FACILITY.

IT WASN'T THE EASIEST FACILITY TO CONVERT TO A HOTEL AND IT HAS UNDERGROUND BUNKERS AND HAS SOME OTHER UNIQUE CHARACTERISTICS, BUT IT IS PART OF THE LEGEND AND LORE AND, UH, FABRIC OF THE AUSTIN AIRPORT AND THE CITY OF BOSTON.

UM, NEXT SLIDE, PLEASE.

SO TO ALL THE IMPROVEMENTS AT AUSTIN, ACTUALLY AT THE BERGSTROM AIR FORCE BASE, UH, VESTED INTO THE CITY WHEN THE CITY PURCHASED THE ASSETS OF THE AIR FORCE BASE.

AND, UM, THIS, UH, FACILITY BECAME PART OF THE AUSTIN AIRPORT OPERATIONS JUST AS THE RUNWAYS AND EVERY, ALL THE OTHER INFRASTRUCTURE AND FACILITIES THAT WERE LOCATED ON THE PROPERTY.

THIS SLIDE RIGHT HERE IS JUST A SLIDE WE WOULD GIVE TO ANYBODY INTERESTED IN THE REAL ESTATE DATA SPECIFICALLY RELATED TO THIS PROPERTY WITH ITS PROPERTY NAME,

[00:10:01]

ADDRESS, LAND DESCRIPTION, UM, ZONING CLASSIFICATIONS.

AND AS YOU CAN SEE BY THIS ARIEL, IT IS FOR THOSE OF YOU WHO DON'T KNOW IT IS LOCATED RIGHT AT THE FRONT DOOR ENTRANCE TO THE AIRPORT PROPERTY.

NEXT SLIDE PLEASE.

SO THE YEAR THAT THE NEW HOTEL OPENED WAS 2001, AND THAT WAS, UM, UM, AFTER THE CONVERSION OF HIS OLD HEADQUARTERS OF THE AIR FORCE BASE, UM, TO A HOTEL, THESE ARE ALSO THE STATS OF THE HOTEL.

IT'S A RELATIVELY LARGE HOTEL, IT HAS 262 ROOMS, AND IT IS A FULL SERVICE LODGING FACILITY.

AND AS WE, UM, MENTIONED IN OUR LAST PRESENTATION, THIS HOTEL SERVES NOT ONLY ARE THE TRAVELING PUBLIC THAT COMES TO AND FROM THE CITY OF AUSTIN THROUGH THE AIRPORT, BUT IT'S ALSO THE FACILITY.

WE HAVE SEVERAL CREW CON OR THE AIRPORT HAS, EXCUSE ME, THE HOTEL HAS SEVERAL CREW CONTRACTS WITH, UM, MAJOR AIRLINES TO, UM, HAS THEIR CREWS FOR THEIR LAYOVERS IN THIS FACILITY.

SO NEXT SLIDE PLEASE.

SO SINCE THE AIR HOTEL OPENED IN 2000, I'M GOING TO SAY THAT OVER AND OVER THE AIRPORT SET UP HOTEL, I DO MEAN THE HOTEL.

SO WHEN THE HOTEL OPENED IN 2001, IT WAS RENOVATED TO THE STYLE OF A HEEL COUNTRY, RUSTIC KIND OF MOTIF, WHICH WAS CONSISTENT, UH, WITH, UM, HOW WE PRESENT OURSELVES HERE IN THE CITY OF AUSTIN.

BUT AFTER ABOUT 15 PLUS YEARS, THE PROPERTY WAS LOOKING TIRED.

AND SO AS PART OF THE, UH, REFINANCE RESTRUCTURE OF THE BONDS IN 2017, THAT REGIME WE'LL TALK ABOUT HERE IN A MINUTE, W WE WERE ABLE TO GET SOME RENOVATION FUNDS FOR THE RENOVATION PROGRAM FOR REFRESH OF THE HILTON PROPERTY.

SO AS YOU CAN SEE HERE ON THE SLIDE, 11 MILLION WAS SPENT ON, UH, RENOVATING ALL OF THE ROOMS AND THEY'RE BEAUTIFUL.

SO PLEASE COME BY ANYTIME AND BASICALLY GIVE YOU A TOUR OF THE RENOVATED ROOMS AND THE MEETING SPACES, WHICH IS A BIG REVENUE GENERATOR FOR A HOTEL PROPERTY.

WE'RE ALSO RENOVATED THESE RENOVATION PROJECTS WERE STARTED PRE COVID AND AS A CONSEQUENCE, UM, THEY WERE COMPLETED DURING 2020, AS YOU CAN SEE HERE.

UM, AND THEY CAN SAY FACTOR OF THE HOTEL ACTUALLY FACILITATED IN THE SCHEDULING OF THESE RENOVATIONS.

SO THESE RENOVATIONS ARE SUBSTANTIALLY COMPLETE AND THE PROPERTY IS IN REALLY GOOD SHAPE FROM A PHYSICAL STANDPOINT.

NEXT SLIDE PLEASE.

SO THAT WAS A BRIEF BACKGROUND ON THE STATS OF THE ACTUAL PHYSICAL STRUCTURE, AND NOW ABLE TO TAKE THE MIC AND TALK ABOUT THE BUSINESS STRUCTURE FOR THE HOTEL.

THANK YOU.

ALL RIGHT.

GOOD MORNING, COUNCIL MEMBERS.

UM, MY NAME IS RAJIV THOMAS, DEPUTY CHIEF OF FINANCE HERE AT THE AIRPORT.

SO, UM, THE STRUCTURE OF THE, OF THE HOTEL, AS YOU CAN SEE IS IT'S A NON FOR PROFIT PUBLIC FACILITY CORPORATION.

IT WAS CREATED IN 1998 BY THE CITY OF BOSTON AND IS AUTHORIZED UNDER CHAPTER THREE OR THREE OF THE TEXAS LOCAL GOVERNMENT CODE.

UM, ABL ACT ON BEHALF OF THE CITY OF AUSTIN.

IT WAS CREATED TO ISSUE THE TAX IN SOME BONDS IN 1999, AND ALSO IN 2017, THE RESTRUCTURING OF THOSE 1999 BONDS, AND TO CONSTRUCT IMPROVE THE PUBLIC FACILITIES THAT THE AIRPORT, UM, IT'S, IT'S SORT OF, IT'S THE MANDATE IF YOU WANT TO CALL IT THAT, UH, IN TERMS OF THE OVERSIGHT OF ABLE, UH, WE HAVE STAFF HERE AT THE AIRPORT, UH, THAT ACTS AS A LIAISON AND, UH, PROVIDE SOME FINANCIAL SERVICES FOR ABEL.

ABEL DOES ALL THEIR ACCOUNTING THEMSELVES, UH, THE HOTEL ACCOUNTING SIDE OF IT.

UH, WE AT THE AIRPORT DEAL WITH THE FLOW OF FUNDS, UH, ALL THE GRAND PAYMENT RELATED AND JUST MAKING SURE THAT EVERYTHING IS IN COMPLIANCE WITH THE TRUST INDENTURE AND, UH, THE OTHER DOCUMENTS, UH, RELATED TO ABEL.

AND WE ALSO HAVE A GRANT AGREEMENT, UH, THAT SUPPORTS THE BOND PAYMENT FROM AVIATION DEPARTMENT, UH, WHEN WE DID THE RESTRUCTURING, UH, THAT WAS, UH, PART OF WHAT MADE THE INVESTMENT COMMUNITY COMFORTABLE WITH, UH, YOU KNOW, PROVIDING A, UH, YOU'LL SEE, LIKE THE RE THE, THE RATING AGENCIES ALSO GAVE IT A FAIRLY GOOD WRITTEN RATING, UH, BASED ON THE FACT THAT THE AVIATION DEPARTMENT IS SUPPORTING THE BONDS AND THE AVIATION DEPARTMENT RECEIVES WE, WE RECEIVED GROUNDLESS PAYMENTS, UH, IT JUST 5% OF TOTAL REVENUES.

AND WE ALSO CHARGE AN ADMINISTRATIVE FEE FOR SOME OF THOSE SERVICES THAT WE DO FOR ABEL, UH, WHICH IS $10,000 A MONTH.

AND THE OPERATIONS OF THE HOTEL ARE SUBJECTIVE, A REGULATIONS, AS TRACY MENTIONED BEFORE.

SO JUST

[00:15:01]

TO GIVE YOU A TIMELINE OF WHAT HAPPENED THROUGH 2017, AS TRACY MENTIONED BEFORE, UH, ABEL WAS CREATED IN 1998, UM, AND THE 1999 SERIES A AND B BONDS WERE ISSUED, UM, FOR 42 MILLION AND A HALF.

UM, THE INTEREST RATES ON THOSE WERE FAIRLY HIGH.

THEY, ESPECIALLY THE 1999 SERIES B AND ALMOST A 10% INTEREST RATE.

AND IN 2001, UM, THE AUSTIN AIRPORT HILTON OPENED, UM, BUT IN 2004, ABEL DEFAULTED ON THOSE 1999 THAT SERVICE PAYMENT, AND JUST, YOU KNOW, ASKING SOME FOLKS AROUND, UM, YOU KNOW, WHAT MIGHT HAVE LED TO THAT, YOU KNOW, PART OF IT WAS NINE 11, UH, KIND OF, YOU KNOW, DECREASE THE, UM, THE TRAFFIC FLOW OR, YOU KNOW, UH, UM, AIRLINE PASSENGERS, AND ALSO IT AFFECTED THE HOTEL.

AND THEN IN 2014, ABEL BEGAN NEGOTIATIONS WITH THOSE 99, 9 BOND HOLDERS TO RESTRUCTURE THE DEBT.

UH, BUT IN 2015, UH, THE HOTEL DID SUFFER SOME ROOF DAMAGE AND THE HPAC SYSTEM FAILED, UM, CREATING SOME NONTOXIC CEILING MOLD.

SO IF YOU REMEMBER THAT ONE OF THE FIRST SLIDES WAS THE PROPERTY STARTED WITH THREE STORIES AND AN ADDITIONAL STORY WAS ADDED AS A FOURTH STORY.

AND, UH, AND THAT TOP, UH, ATRIUM WAS COVERED.

AND, UH, YOU KNOW, WITH THAT STORM DAMAGE, IT CAUSED SOME, UH, UH, MOLD ISSUES.

AND IN 2016, THERE WAS AN AGREEMENT REACHED TO RESTRUCTURE THE NNN MOUNTS.

AND IN 2017, UH, THOSE RESTRUCTURED BOUNDS WERE FINALLY SHOOT FOR 45 AND A HALF $45.6 MILLION.

UM, NEXT SLIDE PLEASE.

SORRY.

I WAS, I WAS LOOKING AT THAT OTHER SCREEN, MY FAULT.

UM, NEXT SLIDE PLEASE.

UM, SO THEY, THEY, THEY ISSUANCE ON THE 2017 BONDS, AS YOU CAN SEE, WAS 45 AND WHEN $6 MILLION AND 30 MILLION OF THOSE WERE USED TO DEFACE AND DISCHARGE THE OLD BOND HOLDERS, UM, AND THEN 4 MILLION OF THAT WENT TO THAT HPAC AND, UH, REMEDIATION PROJECTS, INCLUDING $3 MILLION.

THE, THE AVIATION DEPARTMENT ACTUALLY FUNDED $3 MILLION TO FIX THAT HPAC ISSUE.

AND THEN FROM THE BOND ISSUANCE, UH, IT WAS REIMBURSED BACK TO THE AVIATION DEPARTMENT.

AND AS TRACY MENTIONED, THE CAPITAL PROJECTS WERE ALSO INCLUDED AS PART OF THE USE OF FUNDS THAT WAS $13 MILLION.

AND THOSE CAPITAL PROJECTS WERE PART OF, UM, AN AGREEMENT WE HAD WITH HILTON TO LIVE UP TO THEIR, THEIR STANDARDS, THOSE HILTON STANDARDS AT THE TIME.

UH, SO THAT WAS A PART OF WHAT THEY CALL THEIR IMPROVEMENT PLANS THAT YOU'RE BRINGING THE HOTEL UP TO THEIR STANDARDS.

AND THEN $750,000 WENT INTO WORKING CAPITAL.

UH, WE FUNDED THE DEBT SERVICE RESERVE FUND, UH, FOR $3.9 MILLION.

AND THERE WAS A COST OF ISSUANCE OF $1.4 MILLION.

NEXT SLIDE PLEASE.

SO, AS I MENTIONED BEFORE, UM, THE PURPOSE OF THE BONDS I'VE ALREADY KIND OF GONE THROUGH, UH, YOU KNOW, IT WAS TO, IT FUNDED THE HVC REPLACEMENT OR THE CAPITAL IMPROVEMENTS AND THE DEBT SERVICE RESERVE FUND.

SO THERE ARE TWO PAYMENTS SEMI-ANNUAL PAYMENTS THAT WE MAKE APRIL 1ST IS AN INTEREST ONLY PAYMENT.

AND OCTOBER 1ST WE MAKE AN, A PRINCIPAL AND INTEREST PAYMENT.

AND THE MATURITY OF THE BOND IS OCTOBER 1ST, 2036.

AND, UH, MOODY'S GAVE IT AN EIGHT THREE RATING, AND WE HAVE AN EIGHT MINUS RATING FROM THE SMP AND TALKING TO MOODY'S VERY RECENTLY, ACTUALLY LAST WEEK, THEY DID MENTION THAT THE ONLY REASON WHY IT HAS SUCH A HIGH RATING IS BECAUSE OF THE BACKING OF THE AIRPORT.

AND THEY WERE VERY HAPPY WITH THE FACT THAT WE ARE DOING EVERYTHING TO SUPPORT ABEL.

UM, WHEN THEY, WHEN THEY REALIZED, YOU KNOW, WE ARE PROVIDING THEM WITH THE OPERATING LOAN AND WE ARE CONTINUING TO SUPPORT THEM THROUGH THE GRANT PAYMENTS, UH, THEY WERE HAPPY THAT WE ARE, WE ARE, WE ARE DOING THAT AND DECIDE WITHOUT, AS A STANDALONE CREDIT, UH, IT WOULD NOT RECEIVE THAT RATING.

NEXT SLIDE PLEASE.

SO THE BONDS ARE OBLIGATION OF ABLE TO BE PAID FROM HOTEL REVENUES.

SO THE GRANT AGREEMENT, AS I MENTIONED BEFORE, IT'S, IT'S, IT'S BASICALLY WHAT IT DOES.

IT IS REPLENISHES THE DEBT SERVICE RESERVE FUND.

SO FOR EXAMPLE, CURRENTLY WITH THE PANDEMIC, YOU KNOW, UH,

[00:20:01]

THERE IS NOT ENOUGH MONEY IN THE DEBT SERVICE FUND TO MAKE THE BOND PAYMENTS.

SO THE TRUSTEE IS HAVING TO DIP INTO THE DEBT SERVICE RESERVE FUND, AND THEN THE AIRPORT REPLENISHES THAT, UH, AS WE GET NOTIFICATION FROM THE BOND TRUSTEE AND CAN HAVE A GROUND LEASE, AS I MENTIONED BEFORE, UM, UH, IN THE RIGHT JOB, OCCUPY THE AIRPORT LAND AND THE RENTAL REVENUES COME TO THE AIRPORT, LIKE I MENTIONED BEFORE, THAT'S ABOUT 5% OF TOTAL REVENUES.

AND THEN WE HAVE TWO PRIMARY CONTRACTS FOR THE HOTEL OPERATIONS.

ONE IS THE, THE FRANCHISE AGREEMENT WITH HILTON THAT EXPIRES DECEMBER 31ST, 2032.

AND, YOU KNOW, WE HAVE TO MEET THE BRANDING AND CORPORATE STANDARDS OF HILTON, WHICH I MENTIONED BEFORE LED TO THE RENOVATION OF THE HOTEL ROOMS AND THE MEETINGS, UH, UH, PLACES.

AND ALSO WE HAVE THE HOTEL MANAGEMENT AGREEMENT WITH BOYKIN PROSPERA, UH, AND THAT AGREEMENT EXPIRES IN SEPTEMBER 30TH, 2022 WITH TWO, ONE YEAR OPTIONS TO RENEW THAT, YOU KNOW, WE HAVE TO COME BEFORE THE CITY COUNCIL FOR THOSE RENEWALS AND PROSPERA, UH, DOES ALL THE OPERATIONAL AND FINANCIAL PROGRAMS FOR THE HOTEL.

AND AS I MENTIONED BEFORE, THE RENEWAL EXTENSIONS AND FUTURE NEW HOTEL MANAGEMENT AGREEMENTS ARE SUBJECT TO CITY COUNCIL APPROVAL.

NEXT SLIDE PLEASE.

SO, NO, I'M JUST GOING TO GO INTO THE FINANCIAL PERFORMANCE OF THE HOTEL, UH, FROM 2017 TO 2021.

SO YOU CAN KIND OF SEE THE, YOU KNOW, HOW IT IS PERFORMING.

SO THE LAST THREE YEARS BEFORE THE PANDEMIC, AS YOU CAN SEE, THE OCCUPANCY RATES WERE A LITTLE ABOVE 80%, AND THE AVERAGE DAILY ROOM RATE WAS ABOUT 1 35.

I WOULD SAY 2, 1 40, AS YOU CAN SEE FROM THOSE, FROM THOSE TABLES AND THE HOTEL HAD ROUGH BARS OR REVENUE PER AVAILABLE ROOMS OF ABOUT IT RANGED FROM ONE 16 TO ONE 12, UH, IN THOSE THREE YEARS.

AND, BUT ANNUAL REVENUES WERE ROUGHLY ABOUT $15 MILLION.

UM, AND THEN GROSS OPERATING PROFITS OF LITTLE OVER 5 MILLION AND EBITDA.

AND YOU BACK OUT SOME EXTRAORDINARY ITEMS WAS ABOUT $4 MILLION ON AN AVERAGE BASIS, AS YOU CAN SEE FOR THE THREE YEARS BEFORE THE PANDEMIC.

UM, BUT THE PANDEMIC, OBVIOUSLY FROM THE NUMBERS, YOU CAN SEE THE OCCUPANCY RATES PLUMMETED TO 33%.

IN 2020, OUR DAILY ROOM RATES WERE AFFECTED BECAUSE THERE WAS JUST AN OVER SUPPLY OF ROOMS. AND OUR REVENUES ARE THERE'S ABOUT ONE THIRD OF WHAT IT WAS BEFORE THE PANDEMIC OF ABOUT 5 MILLION.

AND THE, THE, THE HOTEL WAS OPERATING AT A LOSS, UH, AS YOU CAN SEE FROM A GROSS PROFIT BASIS AND ALSO ON AN EVERYDAY BASIS, BUT IN THE 2021 BUDGET, NOW THAT THE RECOVERY HAS STARTED IN MARCH, UH, WE ARE STARTING TO SEE SOME IMPROVING NUMBERS.

SO WE DID AN AMENDED BUDGET, UM, AFTER THE INITIAL BUDGET WAS APPROVED.

UM, ONCE WE SAW THE, UM, MARCH AND APRIL ACTUALS COME THROUGH, AND WE THINK FOR 20, 21 CALENDAR YEAR, WE'LL GET TO ABOUT 53% OCCUPANCY, UH, WITH, YOU KNOW, DAILY RATE OF ABOUT 122, UH, DOLLARS, UM, ON, ON THE ROOMS. AND WE WILL MAKE ABOUT $7.7 MILLION IN REVENUES, WHICH IS ROUGHLY ABOUT HALF OF, YOU KNOW, WHAT IT WAS DOING PRE PANDEMIC, UH, BUT, UH, EXPECTING A POSITIVE, GROSS OPERATING PROFIT, BUT, UM, NEGATIVE EBITDA.

UM, AND, UH, NEXT SLIDE, PLEASE.

SO COMPANY TO OUR COMPETITIVE SET AND THE COMPETITIVE SET AS ESSENTIALLY MID PRICE, WHAT ELSE WITHIN THE AUSTIN AREA, AS YOU CAN SEE FOR THE FIRST THREE YEARS, 2017 THROUGH 19, YOU KNOW, THE POST, THE RESTRUCTURING, WE WERE OUTPERFORMING OUR COMPETITIVE SETS, YOU KNOW, 83% IN OCCUPANCY VERSUS, YOU KNOW, IN THE SEVENTIES FOR THE COMPETITIVE SET.

AND EVEN, YOU KNOW, YOU LOOK AT THE AVERAGE DAILY RATES THERE, THOSE WERE HIGHER AND OBVIOUSLY REVENUE PER AVAILABLE ROADS WERE HIGHER THAN THE COMPETITIVE SET.

SO THE HOTEL WAS PERFORMING WELL, UM, COMPETITORS IN, IN, IN THE AUSTIN AREA BEFORE THE PANDEMIC.

AND AS YOU CAN SEE AFTER THE PANDEMIC, AND WE LOOK AT, YOU KNOW, THE 20, 20 ACTUALS, UM, YOU CAN SEE THE OCCUPANCY RATE ACTUALLY DROPPED BELOW THAT COMPETITIVE SET BECAUSE THE HOTEL IS REALLY KIND OF DEPENDENT ON, UH, THE TRAFFIC THROUGH THE AIRPORT.

AND ESPECIALLY, YOU KNOW, WE HAVE LIKE, LIKE TRACY MENTIONED AIRLINE CREW CONTRACTS.

SO WHEN THEY CUT DOWN THEIR FLIGHTS, THE AIRLINES CUT DOWN THEIR FLIGHTS.

OBVIOUSLY THE, YOU KNOW, IT AFFECTS THOSE OVERNIGHT STAYS BY THE CREW.

AND, AND, UH, ALSO, UH, FOLKS THAT ARE TRAVELING THROUGH THE AIRPORT, THAT BOOK, YOU KNOW, ONE NIGHT TO JUST TO BE CATCH THAT EARLY MORNING FLIGHT, ET CETERA, ALL THAT GETS AFFECTED.

SO

[00:25:01]

WE DID EXPECT THAT THAT COMPARED TO OTHER HOTELS AROUND AUSTIN, IT WOULD UNDERPERFORM BASED ON THE TRAFFIC AT THE AIRPORT AND FOR THE BUDGET, WE ARE SORT OF FORECASTING IT THE SAME WAY AS YOU CAN SEE, THE OCCUPANCIES ARE LESS THAN THE, THE MID HOTELS, UH, AROUND AUSTIN.

UH, BUT THE AVERAGE DAILY RATE, UM, IT'S, IT'S MEANT TO BE A LITTLE HIGHER BECAUSE OF THE ROOM RENOVATIONS AND WHAT WE FEEL LIKE WE CAN GET A HIGHER RATE OUT OF THE, UM, THE QUALITY OF THE ROOMS THAT ARE BEING OPERATED.

NEXT SLIDE, PLEASE.

SO FOR THE FIRST FOUR MONTHS THAT WE HAVE ACTUALLY FOUR, AS YOU CAN SEE, UM, YOU KNOW, JANUARY OCCUPANCY, UH, LEVELS WERE 22%, BUT AS YOU CAN SEE IN MARCH, JUST PICKED UP TO OVER 50% NOW, AND YOU CAN SEE IMPROVEMENTS ACROSS ALL THE METRICS, THE AVERAGE DAILY RATES, WHICH WE'RE AVERAGING, YOU KNOW, PRE PANDEMIC, UH, THIS YEAR ABOUT 106 TO 109 IS NOW 110 AND IMPROVING ON $122.

AND YOU CAN SEE THE REVENUES ARE ALSO CLIMBING BACK UP, UM, AS OF MARCH AND APRIL, IT HAS TO DEBIT THE POSITIVE.

SO FROM AN OPERATIONAL STANDPOINT, UH, IT'S IN GOOD SHAPE IN THE SENSE THAT IT CAN MEET ALL THE OPERATIONAL EXPENSES TO THE OPERATING REVENUES THAT IT IS GENERATING.

AND, YOU KNOW, THE LAST TWO MONTHS THEN WHEN WE COMPARED TO THE COMPETITIVE SET, IT IS ALSO OUTPERFORMING THAT COMPETITIVE SET AROUND THE AUSTIN AREA, LEAST FOR MARCH AND APRIL.

UM, SO THAT'S ALSO GOOD NEWS, UM, UM, HOPEFULLY GOING FORWARD.

UM, AND, UH, NEXT SLIDE, PLEASE.

SO TRACY WILL PICK UP ON THE GOVERNANCE ISSUES FOR ABEL.

THANK YOU, RISHI.

SO ONE OF THE OTHER TOPICS THAT WE WANTED TO COVER TODAY WAS A HISTORY OF THE GOVERNANCE, BOTH THE, AND THE, UH, THE GOVERNANCE DOCUMENT, AS WELL AS THE STRUCTURE.

UM, SO WE'LL START WITH THE DOCUMENTS AS YOU COUNCIL MEMBERS MAY RECALL THAT IN APRIL 22ND, 2021, UH, THE COUNCIL APPROVED THE AMENDED AND RESTATED ARTICLES OF INCORPORATION.

UM, THEY HAD NOT BEEN UPDATED SINCE THEY WERE FIRST, UH, FILED WITH THE SECRETARY OF STATE IN 1998.

AND SO THEY NEEDED, I JUST A REFRESH UPDATE FOR THOSE TWO MAJOR BULLET POINTS RIGHT THERE, WHICH IS TO UPDATE THE REGISTERED AGENT AND TO UPDATE THE AUTHORIZED NUMBER OF BOARD MEMBERS TO MATCH THE, UH, THE BYLAWS.

SO THE BYLAWS, UH, THE ORIGINAL BYLAWS WERE FORMED, UH, OR EXCUSE ME, WERE APPROVED, UH, WITH THE FORMATION OF ABL.

AND THEY'D BEEN AMENDED ONCE PRIOR TO INCREASE THE NUMBER OF DIRECTORS FROM THREE, WHICH WASN'T THE ORIGINAL NUMBER OF DIRECTORS, UH, TO FIVE IN FEBRUARY OF 20, EXCUSE ME, 2001.

AND THEN JUST MOST RECENTLY IN OUR MOST RECENT, UH, OR THE JUNE 3RD COUNCIL MEETING, THERE WERE, UM, AND THAT WAS ANOTHER UPDATE FOR AN AMENDED AND RESTATED BYLAWS.

AND NOW THAT WE HAVE NO FEWER THAN THREE AND NO MORE THAN SEVEN, HOWEVER, WE CURRENTLY HAVE FIVE BOARD MEMBERS, BUT WE HAVE AUTHORITY TO GO UP TO SEVEN.

AND, UH, THE NEW BYLAWS, THESE ARE THE PRIMARY CHANGES AS THEY DESIGNATED SPECIFIC POSITIONS WITHIN THE DEPARTMENT OF AVIATION TO BE BOARD MEMBERS.

AND THAT THERE WOULD BE A FULL OR PART TIME HADE PRESIDENT, WHICH WAS NOT INCLUDED IN THE PRIOR BYLAWS, UH, EXPLICITLY.

UM, WE BELIEVE THAT THE, UH, SPECIFIC POSITIONS OF AVIATION DEPARTMENT MEMBERS, UH, SERVE ON THIS BOARD BECAUSE THERE ARE SO MANY FINANCIAL OBLIGATIONS OF THE DEPARTMENT OF AVIATION THAT ARE, UM, CONNECTED TO, UH, ABLE AS WELL AS THE SUPPORT SERVICES THAT WE PROVIDE.

WE, UM, AS COUNCIL AGREES THAT HAVING A STAFF MEMBERS OF THE DEPARTMENT OF AVIATION SERVE ON THAT BOARD HAS A REALLY GOOD CHECKS AND BALANCES, AND AS A SECURITY FOR THE DEPARTMENT OF AVIATION IN THE CITY OF AUSTIN ON THAT PURPOSE.

SO THOSE WERE THE TWO GOVERNANCE DOCUMENTS IN THE NEXT SLIDE.

WE'LL TALK A LITTLE BIT ABOUT THE BOARD ITSELF AND ITS HISTORY.

SO NEXT SLIDE, PLEASE.

SO HISTORICALLY THE BOARD OF DIRECTORS FOR THIS CORPORATION INCLUDED NOT ONLY DEPARTMENT OF AVIATION STAFF, PEOPLE, BUT ALSO OTHER, UM, CITY EMPLOYEES.

AND YOU CAN SEE THE BULLETS THERE HAS FROM THE CITY OF AUSTIN IN THE PAST TREASURER, ASSISTANT CITY MANAGER, CFO OF THE CITY, AND FROM THE DEPARTMENT OF AVIATION, WE'VE HAD OUR CFO STAFF LIAISONS AND OUR CEO, AND SINCE 20 14, 20 14 WAS THE YEAR THAT THE CITY ENGAGED A PUBLIC RELATIONS FOR A LAW FIRM

[00:30:01]

AND RESTRUCTURING CONSULTANT TO ASSIST THE CITY WITH THE RESTRUCTURE OF THE 1999 BONDS INTO THE 2017 BONDS.

SO HARNEY PARTNERS, UH, THE CORPORATION HARNEY PARTNERS WAS THE RESTRUCTURE PROFESSIONAL HIRED BY THE CITY FOR THAT PURPOSE.

MR. GREG MILLIKEN WAS AN EVP OF THAT CORPORATION.

IT WAS THE, UM, THE PROFESSIONAL ONSITE, AND HE ALSO SERVED ON THE BOARD FOR 20, FROM 2014 TO 2020 AS, UH, MR. MILLIGAN WAS A, UM, INSTRUMENTAL PROFESSIONAL IN, THROUGH THAT TRANSITION TO THE 2017 BONDS.

HE DID TRANSITION OFF THE BOARD THOUGH IN JANUARY OF 2021.

SO IN JANUARY, 2021 CITY COUNCIL DID APPROVE THE FOLLOWING DIRECTORS.

IT INCLUDES, UH, MYSELF AND, UH, MOOKY PATEL.

THOSE ARE THE TWO OFFICER LEVEL POSITIONS THAT THE BYLAWS DESIGNATE WILL BE ON THE BOARD OF DIRECTORS.

UM, WE ALSO HAVE FROM THE DEPARTMENT OF AVIATION, JENNIFER WILLIAMS, SHE'S IN OUR DEVELOPMENT TEAM.

AND SO WHAT YOU HAVE FROM THE DEPARTMENT OF AVIATION SERVING ON THIS BOARD IS A, UM, FROM AVIATION STAFF AS A LAWYER BUSINESS PERSON, UH, FINANCIAL, UH, EXECUTIVE AND A CONSTRUCTION EXECUTIVE.

SO YOU HAVE THOSE THREE, UH, SKILLSETS ON THE BOARD OF DIRECTORS.

WE ARE PLEASED TO SAY THAT WE WERE ABLE TO GET ONE OF THE PARTNERS IN THE LITIGATION SECTION OF HAYNESVILLE AND LAW FIRM, LESLIE THORNE, AND ANOTHER BOARD MEMBER, MR. DECARO, WHO WAS A SPECIALIST IN RESTRUCTURING AND PROCESS MANAGEMENT PROFESSIONALS.

SO WE BELIEVE THAT THE BOARD OF DIRECTORS FOR THE ABL CORPORATION IS A COMBINATION OF CITY STAFF, AS WELL AS PRIVATE VOLUNTEER CITIZENS THAT ARE ALL PROFESSIONAL AND VERY WELL QUALIFIED TO TAKE THE HOTEL INTO, UH, INTO THE FUTURE.

SO WE'RE REAL PLEASED, AND WE APPRECIATE THE COUNCIL APPROVING THIS SLATE OF BOARD MEMBERS.

THE PRESIDENT OF ABEL IS MR. MILLIGAN.

HE IS NOT A BOARD MEMBER, BUT HE IS THE PRESIDENT.

HE DOES HAVE AN ENGAGEMENT AGREEMENT WITH THE ABLE CORPORATION TO SERVE AS PRESIDENT AND HIS ENGAGEMENT LETTER WILL BE AMENDED TO SPECIFICALLY, UM, MIRROR OR REFLECT THE NEW REQUIREMENTS IN THE BYLAWS THAT LIMIT PRESIDENTIAL AUTHORITIES AND APPROVAL BY THE BOARD.

AND AT THE NEXT APRIL BOARD MEETING, HIS, UM, ENGAGEMENT LETTER WILL BE AMENDED TO REFLECT THE UPDATED BYLAWS.

NEXT SLIDE PLEASE.

SO BEFORE WE TALK, UH, LET ME GO AHEAD AND FINISH THIS LAST LINE.

WE'LL GO AHEAD AND DO THE LOOKING HEAD.

SO, UM, WHAT, AND AS THE CITY COUNCIL REQUESTED AND POSSIBLY THIS COMMITTEE, UM, I CAN'T REMEMBER WHO, WHO SUGGESTED IT, UH, SPECIFICALLY, BUT OUR PLAN IS THAT THE AVIATION DEPARTMENT, AS THE LIAISON FOR THE ABL CORPORATION WILL PROVIDE TO CITY COUNCIL QUARTERLY UPDATES, UH, RIGHT AFTER ABEL DOES ITS QUARTERLY UPDATE FOR THEIR FINANCIALS.

WE WILL PRESENT THAT INFORMATION TO CITY COUNCIL OR TO THIS COMMITTEE AT, AT THE DIRECTION OF COUNCIL, UM, TO TALK ABOUT THE FINANCIAL UPDATES OF THE FINANCIAL RESULTS OF THE HOTEL AND THE COUNCIL APPROVED LOAN.

UM, SO THAT THE CITY COUNCIL ALWAYS HAS INFORMATION, WHETHER THAT'S A VERBAL BRIEFING OR WRITTEN MEMORANDUM THAT THE FULL COUNCIL HAS INFORMATION ABOUT THE STATUS, THE FINANCIAL STATUS OF THE HOTEL.

UM, RAJEEV MENTIONED THAT WE'RE EXCITED ABOUT THE RECOVERY OF THIS BUSINESS AT THE AIRPORT PROPERTY, THIS HOTEL BUSINESS, AS THE AVIATION DEPARTMENT ITSELF WITH ALL OF THE SUPPORT OF THE CITY AND OPENING BACK UP AS OUR AIRPORT OPENS BACK UP OUR HOTEL, UM, UH, OPERATION OCCUPANCY REVENUE SHOULD ALSO IMPROVE.

SO WE'RE LOOKING FORWARD TO DOING THAT.

AND THAT'S OUR LAST SLIDE OF OUR PRESENTATION AND WE ARE PLEASED AND JACKIE ARE PLEASED TO ANSWER ANY OF YOUR QUESTIONS.

THANK YOU.

THANK YOU.

DOES ANYONE HAVE ANY QUESTIONS? OKAY.

THAT'S WHAT I, WE'RE FINE.

THANK YOU.

AND THANK YOU, TRACY, FOR BOTH OF YOU ALL FOR YOUR PRESENTATION TODAY.

UM, I REALLY LOVE AND APPRECIATE THAT PLAN TO PROVIDE QUARTERLY UPDATES TO COUNCIL ON THE FINANCIALS OF THE HOTEL.

I THINK THAT WILL GO A LONG WAY.

UM, AND THANK YOU FOR WALKING US THROUGH THE HISTORY, UM, OF THE FINANCIALS FROM THE HOTEL.

THAT'S HELPFUL FOR ME AS SOMEONE, UM, YOU KNOW, AS SOMEONE HAS THIS IN THEIR DISTRICT, I DIDN'T HAVE ANY QUESTIONS.

I JUST WANTED IT TO, TO GIVE A COMMENT.

THANK YOU.

THAT'S A MEMORABLE THANKS.

AND I WANTED TO THANK, UM, FOLKS FROM ABEL FOR BEING HERE TODAY TO GIVE US, UM, A REALLY GOOD SENSE OF THE BACKGROUND AND WHERE WE'VE BEEN AND WHERE WE'RE GOING.

AND, UM, I HAVE HEARD REPORTS OUT FROM, UM,

[00:35:01]

A BIA THAT, UH, TRAVELERS ARE RETURNING IN DROVES.

I UNDERSTAND, UM, GETTING THROUGH SECURITY IS, I MEAN, THERE'S SO MANY PEOPLE THERE THAT IT'S TAKING LONGER EVEN TO GET THROUGH SECURITY THAN IT WAS PRE PANDEMIC.

UM, BUT NOT TOO MUCH DIFFERENT FROM DAYS WHEN WE HAD A LOT OF PEOPLE PASSING THROUGH, UM, UH, BERGSTROM AIRPORT.

SO I'M REALLY PLEASED TO SEE THAT.

THANKS SO MUCH FOR THE HARD WORK YOU GUYS ARE DOING.

I ALSO WANTED TO NOTE THAT THE TRUSTEES, UM, THAT YOU GUYS HAVE, YOU MENTIONED THAT YOU HAVE STRONG PRESENCE FROM LAW OF FINANCE AND CONSTRUCTION AND CONTRACTING, AND THAT'S THE SAME SORT OF PARALLEL SORT OF STRUCTURE THAT WE'RE LOOKING FOR FOR THE OTHER, UM, UH, LOCAL GOVERNMENT, UH, LGC CORPORATION THAT WE HAVE ACE, AND I JUST WANTED TO, UH, OFFER AN UPDATE OR STAFF AND FOR THE DIOCESE HERE THAT I HAD, UM, RECENT CONVERSATIONS WITH THE CITY MANAGER, THEY'VE BEEN ONGOING ABOUT APPOINTING THE NEW TRUSTEES TO ACE, UH, AND THAT WOULD ALSO PARALLEL KIND OF THE MAKEUP OF THE TRUSTEE, UM, UH, EXPERTISE AT ABEL.

AND WE'LL BE LOOKING FOR, UH, THE CITY MANAGER TO SEND, TO AUDIT AND FINANCE A RECOMMENDATION FOR NOMINATION BY THE COUNCIL, SOMEONE FROM STAFF, WITH A BACKGROUND IN, UH, LEGAL.

SO HOPEFULLY SOMEBODY FROM A LOT DEPARTMENT, SOMEONE WITH FINANCIAL BACKGROUND, UH, WE HAVE SOMEONE ALREADY ON, UH, THE TRUSTEES THAT HAS A FINANCIAL AND CONSTRUCTION BACKGROUND.

WE HAVE SOMEBODY WITH, UH, A GOOD FINANCIAL BACKGROUND AND WE HAVE AN ATTORNEY ALSO, UH, IN PRIVATE PRACTICE.

SO I THINK, UM, WITH REGARD TO ACE, WE WILL HAVE THAT GROUP ROUNDED OUT.

AND WHILE I KNOW THAT IS NOT DIRECTLY GERMANE TO THIS ABEL ITEM, I DID WANT TO MAKE NOTE THAT, UM, THAT HOPEFULLY WE WILL HAVE THOSE NAMES FOR OUR JULY AUDIT AND FINANCE AGENDA.

AND THEN WE CAN PASS THOSE NOMINATIONS UP FOR APPROVAL TO THE FULL COUNCIL.

AND JUST THANKS AGAIN TO, UM, TO TRACY, TO REGGIE FOR BEING HERE TODAY AND MAKING THIS PRESENTATION.

THANK YOU.

THANK YOU.

AND COUNCIL MEMBER POOL.

WE'LL ADD THOSE NAMES, BILL, ADD THE, UM, USE APPOINTMENTS AS A TENTATIVE AGENDA ITEM, AND HOPEFULLY STAFF CAN GET THOSE TO US.

UM, MS. THOMPSON, DID YOU HAVE SOMETHING THAT YOU WANTED TO ADD? IT LOOKED LIKE YOU RAISED YOUR HAND BEFORE YOU WENT OFF.

I APOLOGIZE.

I WAS WAVING GOODBYE.

THANK YOU.

OKAY.

ALL RIGHT.

THANK YOU.

WELL, ARE THERE ANY OTHER QUESTIONS FOR THE AIRPORT FOLKS ON APRIL? GREAT.

WELL, THANK YOU.

I APPRECIATE THAT TRANSPARENCY AND HELPING US TO MAKE SURE THAT WE ARE, UM, UNDERSTANDING SOME OF THE EVOLUTION AND THE IMPACT OF THE PANDEMIC.

REMEMBER TELLO, DID YOU HAVE A QUESTION, DUDE? I'M SO SORRY.

I HAVE YOU ALSO ON MY PHONE BECAUSE I NEEDED TO STEP AWAY FOR A MINUTE.

I HAD A QUICK QUESTION ABOUT SLIDE 15, PLEASE.

AND IT'S A GENERAL QUESTION, SO NO NEED TO BRING IT UP UNLESS YOU'D LIKE TO, I'M SORRY.

I DIDN'T HEAR THAT QUESTION.

UM, I HAVE, UH, I HAVE A QUESTION ABOUT A SLIDE 15 RELATED TO SLIDE 15 OF YOUR PRESENTATION, PLEASE.

OKAY.

WOULD YOU MIND BRINGING, BRINGING IT UP AGAIN, PLEASE? I THINK AMY NEEDS TO DO THAT.

GOTCHA.

OKAY.

WELL, LET ME SEE IF I CAN BRING UP THE ONE THAT WE WERE SENDING.

AND YOU SAID PAGE 15, 5 15.

YES.

THANK YOU VERY MUCH.

THIS IS, UM, IN REFERENCE TO THE OCCUPANCY AND I KNOW ANOTHER SLIDE TALKED ABOUT THAT, THAT THESE OCCUPANCY LEVELS PRE PANDEMIC WERE PRETTY COMPARABLE TO OTHER, TO OTHER, UM, SIMILAR MODERATELY PRICED HOTELS.

UH, HOW, WHAT IS, HOW ARE YOU DEFINING COMPETITIVE SET IS COMPETITIVE SET HOTELS NEAR THE AIRPORT? UM, IS IT A NATIONAL MEASURE? WHAT, NO, NO, IT IS.

IT IS JUST AUSTIN AREA AT PRICE HOTELS.

FOR EXAMPLE, I CAN SEND YOU A SAMPLE LIST OF, YOU KNOW, WHAT THAT COMPETITIVE SET LOOKS LIKE.

SO FOR EXAMPLE, ONE WAS LIKE THE CROWN PLAZA.

UM, UH, THE ONE THAT, UH, YOU KNOW, THE COVID PATIENTS WERE HOUSED IN.

SO NO THOSE OCCUPANCY LEVEL LOOKED HIGH COMPARED TO OTHER HOTELS.

UM, I DIDN'T HAVE ALL THE NAMES OF THE COMPETITIVE SET, BUT I CAN SEND YOU A SAMPLE.

WELL, THAT WOULD BE HELPFUL, BUT REALLY IT WAS A MORE GENERAL QUESTION ABOUT HOW THAT'S DEFINED AND WHETHER IT IS GEOGRAPHICALLY

[00:40:01]

SPECIFIC.

I WOULD, YOU KNOW, I WOULD, UM, I WOULD BE INTERESTED IN A COMPARISON.

I KNOW THERE ARE JUST A COUPLE OF HOTELS IN THAT AREA, BUT I WOULD BE INTERESTED IN KNOWING HOW OUR HILTON AUSTIN COMPARES TO OTHER AIRPORT HOTELS, EITHER HERE IN AUSTIN OR NATIONALLY.

I WOULD, YOU KNOW, I DON'T KNOW, I DON'T KNOW WHETHER 83 ISH IN THE 80, 83 ISH IS, IS, UM, STANDARD OR WHETHER IT'S A BIT LOW FOR HOTELS THAT ARE LOCATED IN SUCH CLOSE PROXIMITY TO THE AIRPORT.

AND I WOULD JUST BE INTERESTED IN KNOWING, YOU KNOW, KNOWING YOUR THOUGHTS ON THAT.

UM, I MEAN, YOU HAVE, YOU KNOW, IT'S A RE A REALLY INTERESTING FACILITY AS YOU'VE OUTLINED, AND IT IS THE MOST CONVENIENT HOTEL, UM, TO THOSE STAYING AT THE AIRPORT.

AND THEN, YOU KNOW, IN OTHER CITIES, I KNOW THOSE ARE USUALLY PRETTY HARD SPOTS TO GET AT A HOTEL.

SO I WOULD HAVE EXPECTED, I MEAN, JUST AS A, AS A GENERAL AUDIENCE MEMBER, I WOULD HAVE EXPECTED THOSE NUMBERS.

I WOULD EXPECT IT TO STAPLE, YOU KNOW, NEARLY ALL THE TIME.

AND SO, UH, THAT'S, THAT WAS KIND OF THE SUBSTANCE OF MY QUESTION.

OKAY.

OKAY.

UNDERSTOOD.

AND WE WILL GET THAT INFORMATION FOR YOU.

WHAT IS YOUR GUT? THANK YOU.

WHAT IS YOUR GUT FEELING AT THIS POINT? UM, JUST BASED ON YOUR, YOUR KNOWLEDGE OF HOTELS, UM, AIRPORT HOTELS AND OTHER AND OTHER CITIES, RIGHT.

SO, UM, THERE ARE, IT ALL DEPENDS ON THE COMPETITIVE SET OF LOCALLY CONVENIENT HOTELS, WEATHER, AND, UM, FOR ON AIRPORT HOTELS, BETWEEN IT DEPENDS ON THE SEASON, OF COURSE.

AND SO THE 83% NUMBERS IS A AVERAGE OF THE, OF THE ENTIRE YEAR, ET CETERA, ET CETERA, YOU KNOW, ALL OF THAT.

SO, UM, I WOULD SAY THAT 80, 85 TO 95% IS ABOUT RIGHT.

FOR, UM, FOR THOSE HOTELS.

UM, SO MUCH OF IT DEPENDS ON WHAT THE CREWS ARE DOING, WHETHER THEY'RE GOING DOWNTOWN IS STAYING DOWNTOWN OR WHETHER THEY'RE STAYING THERE THAT HAS A LOT TO DO WITH AIRPORT HOTEL OCCUPANCY LEVELS.

SO WE D I KNOW THAT APRIL WORKS REAL HARD ON THOSE CONTRACTS, YOU KNOW, TO SECURE THOSE CONTRACTS.

UM, BUT I WILL.

SO WHAT WE'LL DO IS WE WILL GET THAT DATA FOR YOU AND, UH, KIND OF GIVE YOU SOME FLAVORS BEHIND THE DATA OF WHAT'S DRIVING SOME OF THE VARIANCES ON THOSE, ON THOSE NUMBERS.

UM, AS YOU KNOW, THERE ARE A LOT OF HOTELS COMING UP AROUND THE AIR FORCE, RIGHT? AND SO THE, UH, ABEL ORGANIZATION AND THE HILTON HOTEL SPECIFICALLY IS WORKING REALLY HARD, UM, TO CATCH, RETAIN ITS MARKET SHARE AS NEW HOTELS ARE BEING BUILT UP AROUND THE AIRPORT.

SO A LOT OF NEW PROPERTIES COMING UP, SO THEY'RE WATCHING THAT VERY CLOSELY AND, UM, REALLY WORKING ON THE MARKETING OF IT.

SO THAT'S WHAT THEY'RE DOING RIGHT NOW, BUT WE'LL GET YOU THAT DATA AND SOME OF THE FLAVOR BEHIND THAT DATA, SO THAT IT, ISN'T JUST A BUNCH OF NUMBERS.

THAT SOUNDS GREAT.

AND I GUESS TOO, I WOULD BE INTERESTED.

AND I, AND I APOLOGIZE, I DON'T KNOW THE ANSWER TO THIS, BUT IT'S BEEN A LONG TIME SINCE I'VE BEEN IN THE AIRPORT AT THIS POINT.

AND, AND USUALLY WHEN I'M THERE AND AT THAT LEG OF IT, I'M KIND OF BLASTING, YOU KNOW, HOPING TO BLAST BLAST MY WAY ON HOME.

SO I'M NOT, I'M NOT FAMILIAR WITH RECENT ADVERTISING THAT YOU'RE DOING IN THE AIRPORT, UM, TO THOSE VISITORS WHO MAY BE JUST LANDING.

AND SO I'D BE ALSO INTERESTED IN THAT QUESTION, WHAT KIND OF ADVERTISING CURRENTLY EXISTS, UM, AND, AND WHETHER THERE ARE PLANS TO EXPAND OR ENHANCE THAT, UM, FOR THOSE VISITORS WHO ARE LANDING, THANK YOU VERY MUCH.

YOU WERE READING MY MIND AS WE GET INTO A NEW, UM, PROGRAM, UH, FOR THE AIRPORT ITSELF.

AND WE THINK ABOUT ALL THE BUSINESSES THAT ARE, UM, ARE LOCATED ON AIRPORT PROPERTY.

AND WE CERTAINLY WANT TO DO EVERYTHING WE CAN TO SUPPORT ALL OF THEM, INCLUDING OUR HOTEL.

SO I THINK OUR PIO DEPARTMENT AND OUR MARKETING DEPARTMENT IS, UM, THINKING THROUGH ALL OF THAT AS WE GET OUT OF THE COVID OUT OF THE COVID COMMUNICATION AND INTO A NEW EXPANDING, YOU KNOW, COME TO THE AIRPORT.

WONDERFUL.

ALL RIGHT.

THANK YOU SO MUCH.

I APPRECIATE IT.

YEAH.

ONE OF THE THINGS I WOULD ALSO MENTION IS THERE'S ANOTHER HOTEL ALSO ON AIRPORT PROPERTY, WHICH IS THE HYATT PLACE THAT OPENED IN 2017.

UM, SO THERE'S TWO HOTELS NOW ON PROPERTY.

UM, SO THAT'S A GOOD POINT.

THINK IT WOULD BE INTERESTING TO KNOW, UM, THAT WOULD BE A PARTICULARLY INTERESTING ONE TO HAVE OCCUPANCY NUMBERS FOR IT, JUST SO WE, WE CAN SEE HOW, HOW THE HILTON IS DOING.

THANK YOU.

THANK YOU.

AND IF YOU CAN SHARE THOSE NUMBERS, UM, WITH THE COMMITTEE AND, UH, PROBABLY COUNCIL MEMBER FOR INSTANCE, WOULD BE INTERESTED, UM, AS WELL.

UM, THE NUMBERS YOU'RE PLANNING TO, TO SHARE WITH COUNCIL MEMBER VOTE.

WELL, THANK YOU.

DO WE HAVE ANY OTHER, I CAN'T SEE EVERYONE WITH THE, UM, PRESENTATION UPS, AND MAYBE IF YOU CAN TAKE THE PRESENTATION DOWN, DOES ANYBODY ELSE HAVE ANY QUESTIONS? UM, AND I WILL NOTE THAT MAYOR OUT THERE HAS JOINED US, UM, ON THE DIOCESE AS WELL.

UM, SO THANK YOU VERY MUCH.

UM, OR JOINING US THIS MORNING, WE APPRECIATE THE OPPORTUNITY TO SPEAK WITH YOU.

UM, WE ARE NOW GOING TO MOVE ON

[3. Financial Policies Update.]

TO ITEM THREE,

[00:45:01]

WHICH IS THE POLICY FINANCIAL, THE FINANCIAL POLICIES UPDATE.

UM, THIS IS A CONVERSATION THAT WE STARTED, UM, LAST MEETING, WHICH WAS JUST A LITTLE BIT OVER TWO WEEKS AGO WITH TWO COUNCIL MEETINGS, UM, INTERVENING, UM, AND, UM, THERE'S SOME CONFUSION OVER, UM, THE, THE FOLLOW-UP IN THE TRANSCRIPT.

UM, I'M PRETTY SURE THAT I WAS THE ONE WHO SAID THAT I WOULD FOLLOW UP, UM, WITH THE STAKEHOLDERS, UM, TO CONNECT FOLKS TO AUSTIN WATER.

IT IS INDICATING IN THE TRANSCRIPT THAT WAS COUNCIL MEMBER TOVO, BUT IN ANY CASE WITH THE DU, UM, COUNCIL MEETINGS AND THE LEVEL OF WORK THAT WE HAD ON THOSE MEETINGS, THAT, UM, CONVERSATION DIDN'T HAPPEN.

UM, AND SO WHAT I WOULD, I WOULD PROPOSE IS THAT WE STILL HAVE THAT CONVERSATION, WHICH WILL STILL ALLOW US TO CHANGE THINGS AT, AT BUDGET TIME.

UM, BUT THAT WE CONSIDER, UM, MOVING FORWARD WITH THIS, WITH AN AMENDMENT.

I THINK THAT COUNCIL MEMBER POOL IS GOING TO PROPOSE TO ONE AREA, WHICH WE KNOW IS NOT GOING TO FLY.

I THINK THE OTHER PIECES ARE MORE FROST, AUSTIN WATER TO HAVE THE CONVERSATION, TO HELP THE STAKEHOLDERS UNDERSTAND, UM, YOU KNOW, WHY WE NEED TO MAKE THOSE ADJUSTMENTS TO THE FINANCIAL POLICY.

UM, AND I BELIEVE THOSE ARE MORE ABOUT OUR FINANCIAL HOUSE THAN THE ENVIRONMENTAL PIECES, BUT I THINK THOSE CONVERSATIONS STILL NEED TO HAPPEN.

UM, BUT I BELIEVE WE COULD HAVE A COMPROMISE HERE WHERE WE ADJUST, UM, THE NUMBER EIGHT UNDER THE FINANCIAL POLICIES FOR AUSTIN WATER, UM, AND POTENTIALLY ACCEPT THE OTHER ITEMS WITH THE PROVISOR THAT, UM, ONE OR MORE OF THE COMMITTEE MEETING MEMBERS WILL, UM, CONVENE A MEETING WITH AUSTIN WATER AND THE ENVIRONMENTAL STAKEHOLDER.

SO THAT CONVERSATION CAN TAKE PLACE NOW THAT WE HAVE A LITTLE BIT MORE TIME THAN WE HAD WITH THE SHORTENED WEEK IN THE TWO COUNCIL MEETINGS IN OUR INTERVENING.

UM, DOES THAT SEEM TO WORK FOR AUSTIN WATER AS AN APPROACH? UM, JOSEPH GONZALES, UH, ASSISTANT DIRECTOR OF FINANCIAL SERVICES WITH AUSTIN WATER.

AND, UH, WE ACTUALLY WERE IN TOUCH WITH, WITH YOUR OFFICE, UM, AND PROVIDED US WITH A LIST OF STAKEHOLDERS THAT, UH, YOU WANTED US TO REACH OUT TO, UH, W WE DID SEND OUT AN INVITE TO LIST ROUGHLY EIGHT, NINE STAKEHOLDERS.

UM, AND WE WERE ONLY ABLE TO MEET WITH, UH, BOBBY LAVINSKY, UH, WITH, WITH SAVE OUR SPRINGS, BUT HE INDICATED HE HAD BEEN IN TOUCH WITH, UH, SEVERAL OF THE OTHER FOLKS ON THE LIST.

UM, AND SO WE, UM, AND HE SAID HE WASN'T SURPRISED THAT, UM, YOU KNOW, WE DIDN'T GET MUCH, UM, IN ENGAGEMENT FROM THE OTHER FOLKS THAT THEY KIND OF REACH OUT TO HIM AND LOOKING AT THEM ON, ON SOME OF THESE TYPES OF THINGS.

UH, BUT WE DID PROVIDE INFORMATION ABOUT WHAT WE'RE TRYING TO DO BOTH FROM, UM, YOU KNOW, FINANCIAL POLICY, FINANCIAL METRIC, UH, FINANCIAL POLICIES, UM, AND, UH, YOU KNOW, THE FINANCIAL POLICY NUMBER EIGHT WITH REGARD TO, UH, THE, THE DRINKING WATER PROTECTION ZONE PROJECTS.

UM, SO, UH, HE INDICATED THAT HE WOULD REACH OUT TO YOUR OFFICE AND EDDIE, HE MAY NOT HAVE DONE THAT, BUT, UH, MY, MY TAKE ON HIS POSITION WAS THAT HE WAS COMFORTABLE WITH THE FINANCIAL POLICIES, WITH REGARD TO DRINKING A DRINK OF WATER PROTECTION ZONE.

ONE.

HE DIDN'T TAKE THAT, YOU KNOW, AS A MEMBER OF THE ENVIRONMENTAL BOARD, HE WAS INTERESTED IN CONTINUING TO SEE THOSE PROJECTS COME TO THE ENVIRONMENTAL BOARD.

AND, AND SO, UM, YOU KNOW, WE COULD, HOWEVER YOU WOULD LIKE TO PROCEED IF, UM, YOU KNOW, I, I DO HAVE A RECOMMENDATION ON, ON EIGHT.

UH, WE, WE HAD INITIALLY PROPOSED, UH, NO LONGER GOING TO THE ENVIRONMENTAL BOARD, UM, THE RESOURCE MANAGEMENT COMMITTEE, UM, ZONING PLANNING COMMISSION, AND THE PLANNING COMMISSION, UH, BUT GIVEN MR. LAVINSKY HIS INTEREST IN CONTINUING TO GO TO THE ENVIRONMENTAL BOARD, UM, AND, YOU KNOW, BECAUSE WE, WE DO ENGAGE REGULARLY WITH THE RESOURCE MANAGEMENT COMMISSION.

UH, YOU KNOW, I THINK WE WOULD RECOMMEND, UH, PERHAPS STILL DROPPING THE PLANNING COMMISSION AND ZONING AND PLANNING COMMISSION.

UH, HOWEVER, IF, UH, YOU KNOW, IF, UH, YOU AND, AND THE OTHER, UM, COMMITTEE MEMBERS, YOU KNOW, UH, FEEL STRONGLY ABOUT, YOU KNOW, NOT REDUCING OPPORTUNITIES FOR PUBLIC ENGAGEMENT, UH, WE WE'D BE FINE AS WELL WITH DROPPING THE RECOMMENDED CHANGES FOR MENSTRUAL POLICY AID ALTOGETHER.

THANK YOU.

I'M GLAD THAT, YOU KNOW, IT'S BEEN A WHIRLWIND THE LAST FEW WEEKS, SO I'M GLAD THAT WE MOVED IT FORWARD, UM, AS WELL.

UM, COUNCIL MEMBER, PAUL, DID YOU WANT TO CHIME IN, CAUSE YOU WERE GOING TO MAKE THEM THERE? YEAH, I'LL MAKE THE MOTION TO, UM,

[00:50:01]

UH, RECOMMEND THE FINANCIAL POLICIES TO THE FULL COUNCIL WITH THE ONE AMENDMENT IN ITEM EIGHT TO, UM, RETAIN THE ENVIRONMENTAL BOARD IN THAT LIST.

AND THEN, UM, WE, THERE IS ADDITIONAL TIME FOR, UH, UH, CONVERSATIONS WITH STAKEHOLDERS AND STAFF BETWEEN NOW AND WHEN WE'LL BRING IT ON AN AGENDA FOR, UM, ACTION AT THE COUNCIL, THE FULL COUNCIL GETS A MEMBER POOL.

ARE YOU AMENABLE TO INCLUDING THE RESOURCE MANAGEMENT COMMISSION? I HEARD FROM MR. GONZALEZ THAT HE THOUGHT IF WE KEPT THE ENVIRONMENTAL BOARD, THAT WE SHOULD KEEP THAT ONE AS WELL.

I MISSED THAT.

AND YES, THAT SOUNDS GOOD TO ME.

YES.

OKAY.

UM, SO WE HAVE A MOTION ON THE TABLE TO, UH, RECOMMEND THE FINANCIAL POLICIES WITH AN AMENDMENT ITEM EIGHT TO ADD BACK IN THE ENVIRONMENTAL BOARD AND THE RESOURCE MANAGEMENT COMMISSION.

AND THAT WOULD CORRECT THAT IN BOTH PARAGRAPHS OF THAT APPROPRIATELY, UM, MOVING FORWARD, UM, IS THERE A SECOND TO THAT MOTION COUNCIL MEMBER KELLY, SECOND THAT MOTION, IS THERE ANY DISCUSSION OR QUESTIONS? SO, SO MR. GONZALEZ, I'LL CIRCLE BACK WITH MY STAFF.

IT'S BEEN KIND OF CRAZY AND DIDN'T HAVE A CHANCE TO, UM, TO, UM, CONNECT UP ON THAT PIECE, UM, MAKE SURE THAT WE'VE CLOSED THE LOOP AND WE'LL LET YOU KNOW IF, IF WE HAVE ANY REMAINING, UM, CONCERNS THERE.

AND I APPRECIATE YOU TAKING THE INITIATIVE AND WORKING WITH MY STAFF TO DO THAT.

UM, I WILL POINT OUT FOR WHOMEVER IS STAFFING, UM, AUDIT AND FINANCE FROM THE CLERK'S OFFICE THAT I THINK THE TRANSCRIPT IS OFF.

UM, AND THAT COMMENTS THAT I MADE OR ATTRIBUTED TO COUNCIL MEMBER TOBO, UM, I DON'T KNOW WHAT THE PROCESS IS.

I DON'T USUALLY READ THROUGH THE WHOLE TRANSCRIPT, SO, SO I'M NOT, I'M NOT SURE HOW THAT HAPPENS.

UM, THAT IS PROBABLY SOME FUNCTION OF ME BEING CHAIR AND CALLING ON ON FOLKS.

UM, BUT I JUST DO WANT TO FLAG THAT, UM, THIS IS SOMETHING THAT WE WANT TO WATCH OUT FOR TO THE EXTENT POSSIBLE.

UM, SO ARE THERE ANY QUESTIONS FOR ANYONE INVOLVED WITH THE FINANCIAL POLICY CHANGES? MS. LANG IS HERE AS WELL.

OKAY.

SEEING NONE, ALL THOSE IN FAVOR.

OKAY.

IT'S UNANIMOUS AS AMENDED ON THE DICE.

THANK YOU VERY MUCH.

THANK YOU.

OKAY.

UM, WE ARE GOING TO TAKE UP, UM,

[4. Proposed bylaw amendments for the Environmental Commission (City Clerk’s Office).]

ITEM FOUR, WHICH IS A MEN PROPOSED AMENDMENTS TO THE ENVIRONMENTAL COMMISSION BYLAWS, THE CLERK'S OFFICE WANT TO PRESENT THESE SURE, UM, COMMITTEE MEMBER BEFORE I BEGIN, THIS IS MYRNA, WHICH, UM, COUNSEL TR I MEAN, UH, AUDIT AND FINANCE TRANSCRIPT, WHERE YOU REFERRING TO, UM, IT IS MAY, UH, 26TH, UM, PAGE 27, THE PARAGRAPH AT 10:56 AM.

OKAY.

I WILL WORK WITH, UM, ATX SEN.

SO, UM, GOOD MORNING COMMITTEE MEMBERS.

THIS IS MYRNA RIOS WITH THE CLERK'S OFFICE PRESENTING PROPOSED TO THE ENVIRONMENTAL COMMISSION BYLAWS.

THE PROPOSED AMENDMENTS ARE TO EDIT ARTICLE EIGHT, A COMMITTEES TO REMOVE THE URBAN GROWTH POLICY AND WATER QUALITY PROTECTION COMMITTEE DEVELOPMENT, AIR QUALITY COMMITTEE, AND THE DRAINAGE INFRASTRUCTURE AND FLOOD MITIGATION COMMITTEE.

THESE AMENDMENTS ARE TO REMOVE THE COMMITTEES THAT ARE NO LONGER ACTIVE ON A QUARTERLY BASIS.

AND THE COMMISSION IS ASKING TO HOLD WORKING GROUPS ON THESE TOPICS ON AN AS NEEDED BASIS.

AND, UH, THE CLERK'S OFFICE CONCURS WITH THE CHANGES, IF YOU'D HAVE ANY QUESTIONS.

THANK YOU.

HE DOESN'T EVEN HAVE ANY QUESTIONS.

WE HAVE A MOTION FROM COUNCIL MEMBER POOL TO APPROVE.

DO WE HAVE A SECOND? OKAY.

MAYOR ADLER SECONDS.

I'M SEEING NO OBJECTIONS.

THAT ITEM WILL PASS.

THANK YOU.

UM, WE ARE GOING TO

[6. Identify items to be discussed at future meetings.]

QUICKLY IDENTIFY ITEMS THAT WILL BE DISCUSSED AT FUTURE MEETINGS.

UM, WE WILL BE TAKING UP INTERVIEWS, UM, FOR THE COERCE TRUSTEE POSITIONS.

WE HAVE, I BELIEVE, TWO OF THOSE AVAILABLE.

UM, SO IF YOU KNOW, ANYONE WHO WANTS TO APPLY FOR THOSE POSITIONS, THAT APPLICATION PROCESS IS CURRENTLY STILL OPEN.

UM, WE'RE HOPING TO DO THOSE INTERVIEWS IN, UM, JULY.

UM, AT SOME POINT IN JULY OR AUGUST, WE'RE HOPING TO HAVE

[00:55:01]

AN UPDATE ON THE CHANGES TO THE PROCUREMENT POLICY.

UM, WE'RE TRYING TO BE MINDFUL OF OUR BUDGET STAFF WHO ALSO HAVE TO DO BUDGETS SO THAT TIMING WILL, UM, BE WORKED OUT WITH THEM.

UM, COUNCIL MEMBER KELLY HAD REQUESTED US TO LOOK AT SOCIAL SERVICE CONTRACTS AND THE APH, UM, EXEMPTION AND RELATED PURCHASING GUIDANCE AT A PRIOR MEETING.

SO WE'RE LOOKING AT TRYING TO SCHEDULE THAT, UM, WE HAVE AN AUDIT ON OFFICER EARLY WARNING SYSTEMS AND AN AUDIT ON RECRUITING AND HIRING.

UM, MS. STOKES, DID YOU WANT TO MENTION ANYTHING ELSE? OKAY.

THANK YOU.

THAT WAS VERY COMPREHENSIVE.

I HAVE A GOOD NOTES HERE.

UM, OKAY.

SO NOW WE ARE GOING TO TAKE UP ITEM

[Executive Session]

FIVE, UM, WHICH WILL REQUIRE US TO MOVE INTO EXECUTIVE SESSION.

UM, SO I WILL NOW SAY THAT THE COMMITTEE WILL NOW GO INTO CLOSED SESSION TO TAKE UP ONE ITEM PURSUANT TO SECTIONS 5, 5 1 0 7 6 AND FIVE FIVE ONE.ZERO EIGHT NINE, OR THE GOVERNMENT CODE THAT COMMITTEE WILL DISCUSS SECURITY AUDIT MATTERS RELATED TO ITEM FIVE SECURITY AUDIT RELIEF RELATED TO INFORMATION SECURITY MANAGEMENT TO THE CITY.

UM, IS THERE ANY OBJECTION TO GOING INTO EXECUTIVE SESSION ON THE ITEM, HEARING ON THE COMMITTEE WILL NOW GO INTO EXECUTIVE SESSION? UM, IT IS MY EXPECTATION THAT IN ALL LIKELIHOOD I WILL JUST COME OUT AT THE END OF EXECUTIVE SESSION AND CLOSE OUT THE COMMITTEE MEETING FOR ANYONE ELSE.

I DO NOT BELIEVE AT THIS POINT, WE WILL HAVE ANY ACTION FROM THAT, BUT IF THE COMMITTEE CHANGES THE MINE, IT'S MINE, THEN WE WILL COME OUT AND TAKE A VOTE IF NECESSARY.

GREAT.

SO COMMITTEE MEMBERS, IF YOU CAN GO INTO EXECUTIVE SESSION, LET ME KNOW IF YOU HAVE ANY TROUBLE WITH THE LINKS.

THANK YOU.

SO MY NAME IS AL SMELTER AND I'M CHAIR OF THE AUDIT AND FINANCE COMMITTEE.

IT IS JUNE 16TH, 2021.

I'M AT 11:25 AM.

WE ARE OUT OF CLOSED SESSION IN CLOSED SESSION.

WE TOOK UP AND DISCUSSED SECURITY AUDIT MATTERS RELATED TO ITEM FIVE.

UM, THAT CONCLUDES OUR BUSINESS FOR TODAY AND AT 11:26 AM.

I WILL ADJOURN THIS MEETING.

THANK YOU.



* This transcript was compiled from uncorrected Speech-to-Text.