Jul 10, 2024 Airport Advisory Commission

[00:00:06]

BUDDY,

[CALL TO ORDER]

UM, PRESENT ARE COMMISSIONERS VALDEZ, MYSELF, FANG FANG YOUNG AND ROSE.

ONLINE WE SEE, UM, VICE CHAIR BROCK.

HI, BAKARI.

PATRICK, I MEAN, UH, KON AND ELLER.

ANYBODY ELSE ON, UM, LINE OR WAITING TO GET IN? NO.

OKAY.

THANK YOU.

WE HAVE A QUORUM.

NICE TO SEE YOU ALL.

AND I, I WOULD LIKE TO JUST HAVE A, A THANK YOU ALL FOR HAVING, UM, A YEAR OF MEETINGS THAT NEVER HAD TO BE CANCELED FOR LACK OF QUORUM.

SO THANK YOU FOR YOUR COMMITMENT TO THE COMMISSION.

UM, OUR FIRST ITEM OF BUSINESS IS THE, IS PUBLIC COMMUNICATION.

DO WE HAVE ANYONE SIGNED UP TO SPEAK TODAY? NO, MA'AM.

THANK YOU, AMY AND TINA.

ALL RIGHT.

UM, SO OUR ACTUAL FIRST ITEM OF BUSINESS IS THE

[APPROVAL OF MINUTES]

I'LL, UM, ENTERTAIN A MOTION MOVED.

THANK YOU.

UM, SECRETARY ROSE SECOND YOUNG.

UM, WE MAY HAVE SOME CHANGES TO THOSE, UM, TO THE RECORD.

COMMISSIONER ENNIS? YEAH, FOR ITEM NUMBER EIGHT, I VOTED IN FAVOR, NOT ABSTAINED.

THANK YOU.

SOMETIMES IT'S A LITTLE TRICKY TO TAKE ROLE ON WHEN ONLINE AND OFFLINE.

OKAY.

THANK YOU FOR THAT CLARIFICATION, JASON.

WE GOT THAT.

OKAY.

THANK YOU.

UM, ITEM NUMBER TWO IS

[2. May 2024 Financial Results presented by Rajeev Thomas, Chief Financial Officer]

I DON'T SEE RAJEEV THOMAS HERE TODAY.

WE HAVE GOOD AFTERNOON COMMISSION.

I'M REJO AND I'M THE ACTING DEPUTY CHIEF OF FINANCE, AND I'M HERE ON BEHALF OF THE FINANCE DIVISION FOR THE AVIATION DEPARTMENT TO GIVE THE MAY 20, 24 RESULTS.

MS. TREJO, WOULD YOU MIND, UM, INTRODUCING YOURSELF AGAIN TO US AND TELL US A LITTLE BIT ABOUT HOW LONG YOU'VE BEEN AT THE AIRPORT? SO, MY NAME IS REJO AND I HAVE BEEN AT THE AIRPORT 26 YEARS.

UM, NOT CONSECUTIVELY, BUT, UH, 26 YEARS IN TOTAL.

SO I'VE SEEN, I USED TO WORK AT ROBERT MUELLER, AND THEN I LEFT FOR THREE YEARS AND I LOVE THE AIRPORT AND I CAME BACK.

SO I'VE BEEN THERE SINCE 2001 FOR THAT.

AND ROLE IS, I'M ACTING DEPUTY CHIEF OF FINANCE.

YES.

FANTASTIC.

SO, UM, I'LL GO AHEAD AND I'LL GET, GET STARTED HERE.

SO IN MAY, AUSTIN SERVES 1.056 MILLION IN PLAIN PASSENGERS THIS YEAR, WHICH IS A NEW RECORD IN EMPLOYEMENT NUMBER FOR THE AIRPORT.

AND IT REPRESENTS A 4.2% INCREASE IN THE IN PLAIN PASSENGERS COMPARED TO MAY OF 2023.

OUR FISCAL YEAR TO DATE NUMBER PASSENGER AND EMPLOYMENT NUMBERS ARE AT 7.3 MILLION, WHICH IS 1.7% HIGHER OVER THE SAME TIMEFRAME FROM THE PRIOR YEAR.

OUR AVERAGE DAILY DEPARTURES FOR MAY OF 2024, TOTAL 267, WHICH IS SLIGHTLY DOWN TWO DEPARTURES OR 0.07% FROM 269 LAST MAY.

OUR OPERATING REVENUES HAVE INCREASED 17.6% OR 4.2 MILLION FOR A TOTAL OF 28.2 MILLION IN MAY OF 2024.

AS YOU CAN SEE, THE INCREASE IN AIRLINE REVENUE IS PRIMARILY DUE TO THE UPDATED RATES FOR FISCAL YEAR 2024.

OUR LANDING WEIGHTS ARE SLIGHTLY UP 0.04% VERSUS MAY OF 2023.

RECORD PASSENGER TRAFFIC LEVELS CONTINUE TO DRIVE THE ADDITIONAL NON AERONAUTIC, NON-AIR AIRLINE REVENUES AT THE AIRPORT.

FISCAL YEAR TO DATE, OPERATING REVENUES INCREASED 16.5% OR 29.5 MILLION, AND EXCEEDED OUR SEASONALIZED BUDGET BY 11.1% OR 20.9 MILLION.

NOW, ONTO THE OPERATING EXPENSES, THEY INCREASED 26.2% OR 2.4 MILLION.

THE INCREASE IS DRIVEN BY GREATLY IMPROVED STAFFING LEVELS, PARKING, OPERATING COSTS, ADDITIONAL COSTS FOR A PD AND A F UNITS, AND ADDITIONAL COMMODITY COSTS.

THE FISCAL YEAR TO DATE OPERATING EXPENSES HAVE INCREASED 28.1%, OR 21.6 MILLION IN OUR EXCEEDING OUR SEASONALIZED BUDGET BY 5.1% OR 4.8 MILLION.

SO

[00:05:01]

SO THIS IS YET ANOTHER POSITIVE REVENUE PERFORMANCE FOR THE MONTH OF MAY FOR 2024.

WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE REGARDING THE MAY, 2024 RESULTS.

COMMISSIONERS, I HAVE A QUESTION.

YES.

WHICH IS, WHAT IS THE DELTA? LIKE, WHAT, WHAT IS THE PERCENTAGE THAT, UH, YOU TOLERATE BETWEEN THE EXPENSES AND REVENUES, THE OPERATING EXPENSES, AND THE REVENUES WHEN IT'S LIKE, WE OBVIOUSLY WE'RE INTERESTED IN CONGRATULATIONS ON A FAVORABLE RESULT, BUT WHAT IS THAT WHEN SOMETIMES THE OPERATING EXPENSE MIGHT EXCEED THE REVENUE OR COME CLOSE? SO TYPICALLY TOWARDS THE END OF A FISCAL YEAR, ESPECIALLY DURING THE SUMMER, THAT'S WHEN OUR EXPENDITURES HAVE AN UPTICK MM-HMM, , UM, THEY START OUT SLOW AND THEN START INCREASING OVER THE SUMMER TOWARDS THE END OF THE FISCAL YEAR.

SO IT'S JUST, AND WE ALIZE THAT TO KIND OF SEE IF THEY'RE COMING IN LINE.

RIGHT.

UM, THERE'S NOT A SPECIFIC METRIC I GUESS, THAT WE'RE LOOKING AT.

WE JUST CLOSELY MONITOR OUR EXPENDITURES TO SEE HOW THEY'RE COMING IN.

MM-HMM, .

AND THEN JUST TO MAKE SURE THAT OUR REVENUES ARE STILL UP GOING UP, BUT JUST THAT WE MAKE SURE OUR COSTS ARE BEING CONTROLLED IF WE SEE THAT THEY'RE STARTING TO GET OUTTA LINE.

OKAY.

OKAY.

THANK YOU.

THANK YOU FOR THAT, COMMISSIONERS.

ALRIGHT.

UM,

[3. Air Service Update provided by Jamy Kazanoff, AUS Air Service Development]

GOOD AFTERNOON COMMISSIONERS.

CAN YOU HEAR ME OKAY? OKAY.

I'M JAMIE KOFF AND HAPPY TO REPORT THE JULY AIR SERVICE SNAPSHOT.

JUST WANNA BRING YOUR ATTENTION TO A FEW ITEMS THAT STAND OUT FOR ME.

ONE IS, UH, OF COURSE WE HAD A RECORD BREAKING MONTH IN MAY, AND THAT WAS IN SPITE OF CAPACITY BEING FLAT, THE SAME AMOUNT OF SEATS THAT THAT WE HAD LAST YEAR.

WE STILL ENDED UP WITH 4% MORE PASSENGERS AND OUR LOAD FACTOR IN MAY LAST YEAR WAS 81%.

SO AGAIN, WE HAD ROOM TO GROW EVEN THOUGH WE LOST SOME CAPACITY.

SO AS WE'RE LOOKING AT CAPACITY AHEAD, YOU CAN SEE THAT AUGUST IS DOWN 10% AUGUST LAST YEAR THOUGH ONLY HAD A 73% LOAD FACTOR.

SO THERE'S ROOM TO HANDLE THE DEMAND, SHOULD IT BE THAT WAY.

AND, UM, IF YOU'RE WONDERING WHY AUGUST IS DROPPED A LITTLE BIT, IT'S BECAUSE THE AIRLINES HAVE REALIZED THAT THE BACK TO SCHOOL SECOND, THIRD WEEK OF AUGUST AFFECTS THEIR TRAVEL PATTERNS.

AND ALSO INFLATION TOO HAS AFFECTED SOME TRAVEL HABITS FOR THOSE ON A TIGHTER BUDGET.

SO THAT'S BEEN RATCHETED BACK A BIT, BUT I FEEL PRETTY CONFIDENT THAT SHOULD THE DEMAND BE THERE WITH THE LOWER LOAD FACTORS WE HAD LAST YEAR, IN SPITE OF A 10% CAPACITY DROP IN AUGUST, WE SHOULD BE ABLE TO ACCOMMODATE THOSE PASSENGERS.

UH, HIGHLIGHTS OF RECENT SERVICE, UH, THE ONLY THING REALLY THAT IS NEW THAT I WANTED TO SPEND A LITTLE BIT OF TIME ON IS ALLEGIANT.

SO ALLEGIANT HAS CLOSED ITS BASE IN AUSTIN, WHICH WILL CHANGE THEIR SERVICE IN AUSTIN.

THEY HAVE PLEDGED TO CONTINUE THEIR SERVICE, BUT WHEN THEY CLOSE THE BASE, THEY WILL ONLY BE ABLE TO FLY TO OTHER ALLEGIANT BASES.

SO THAT MEANS THAT SOME ROUTES WILL BE DROPPED.

THEY'LL KEEP 11 ROUTES THAT THEY CURRENTLY HAVE, BUT THEY WILL BE DROPPING SIX OR SEVEN ROUTES THAT WE HAD PREVIOUSLY WILL NOT BE RETURNING BECAUSE THOSE FLIGHTS TO BOZEMAN, PROVO, UTAH, UH, SANTA ANA, EUGENE, DES MOINES, LOUISVILLE, WASHINGTON, DULLES, THOSE FLIGHTS THAT WE HAD LAST YEAR WERE NOT, UM, TO AN ALLEGIANT BASE.

SO THEY'LL BE CONTINUING THEIR BASE AND THEN YOU'LL PROBABLY ASK WHY THEY'RE, THEY'RE CLOSING THEIR BASE IN AUSTIN.

THAT OF COURSE IS ALLEGIANCE, UH, ALLEGIANCE RESPONSE TO THAT.

IT'S A, A BUSINESS, UH, NEED FOR THEM.

UH, THE FACILITIES ARE DIFFERENT IN THE NEW TERMINAL THAN THEY ARE IN THE SOUTH TERMINAL.

THEY ARE MORE EXPENSIVE AND THEY WERE OFFERED A BUSING OPERATION OR A GATE FROM THE MAIN TERMINAL IN THE COMMON USE AREA.

AND THE PRICE IS DIFFERENT THAN WHAT THEY CURRENTLY ENJOY.

IN ADDITION, THEY WILL BE WITH MANY OTHER CARRIERS IN THE MAIN TERMINAL, WHICH IS A LITTLE BIT DIFFERENT THAN WHAT THEY CURRENTLY ENJOY AT THE SOUTH TERMINAL.

SO THE BEST ANSWER IS TO GET THAT DIRECTLY FROM ALLEGIANT, BUT IT WILL BE A CHANGE IN OPERATIONS FOR THEM FLYING ONLY TO THEIR BASES NOW, WHICH COULD RESULT IN ABOUT A 30% DECREASE IN THE NUMBER OF SEATS THAT WE HAVE ON ALLEGIANT, A-U-L-C-C,

[00:10:01]

THERE'S, I THINK, 15 MORE OF THESE THAT THEY COULD FLY TO FROM AUSTIN.

SO, UM, THAT'S, THAT'S THE ALLEGIANT WHAT'S HAPPENING THERE.

BUT THERE ARE OTHER OPPORTUNITIES FOR ALLEGIANT IN AUSTIN THAT WE'LL BE WORKING ON.

UM, WHAT ELSE DO I HAVE FOR YOU GUYS? MORE FOOTBALL IS ADDED AS, UH, WE TALKED ABOUT LAST TIME AND EVEN MORE SINCE THIS REPORT WAS, UH, DONE IN, UH, WHEN DID I PRODUCE IT? JULY ONE DELTA ADDED ANOTHER FOOTBALL, UM, TO FORT LAUDERDALE ON NOVEMBER 7TH.

AND, UH, SO THAT'S NEW TOO, THAT'S NOT IN HERE.

UM, OVERALL FOR JULY, THE NUMBER OF DESTINATIONS WERE DOWN ONE DESTINATION JULY 24 COMPARED TO 2023.

AND, UH, THAT'S BASED ON THE MONTHLY SCHEDULES.

ANY QUESTIONS FOR ME FOR AIR SERVICE? I THINK YOU MIGHT HAVE MENTIONED THIS, BUT ALLEGION DOES SERVE A LOT OF, AND YOU'LL, YOU'LL, THE AVIATION PEOPLE WILL KNOW WHAT THIS IS CALLED, BUT LIKE THE, NOT THE, THE SMALLER AIRPORTS.

MM-HMM.

, YOU KNOW, SIOUX CITY, SIOUX FALLS, ET CETERA.

WILL THEY HAVE SERVICE THROUGH, UH, DENVER, LIKE ON ANOTHER AIRLINE THROUGH A CONNECTING FLIGHT? OR WILL WE JUST LOSE SERVICE TO SOME OF THESE SMALLER MARKETS? WE'LL LOSE, THEY DON'T OFFER CONNECTING FLIGHTS, BUT WHAT MANY CUSTOMERS DO ARE WHAT WE CALL DOUBLE COUPONS.

SO THE CLEVER CUSTOMER CAN FLY ALLEGIANT TO DENVER AND THEN FLY ON A SEPARATE TICKET FROM DENVER TO ANOTHER MARKET.

OKAY.

THEY DON'T CONNECT LIKE THE, THE NATIONALS DO, THE MAJORS DO.

UM, BUT WE'RE STILL LEFT WITH, UH, LAS VEGAS, UH, PROVO, UTAH, UM, DES MOINES, UH, INDIANA, GRAND RAPIDS, PITTSBURGH, UH, KNOXVILLE, ASHEVILLE, SANFORD, ORLANDO, SARASOTA.

SO WE'VE GOT SOME BEAUTIFUL FLIGHTS FROM THE ULCC.

GREAT.

AND THEN PLEASE REMIND ME, JAMIE, ONLINE, IS THERE A PLACE THAT SHOWS ALL THE DIRECT CONNECTIONS IN THE DIRECT FLIGHTS THAT CAN BE TAKEN FROM AUSTIN CURRENTLY? YES.

ONLINE.

UNDER TRAVELER INFORMATION, THERE'S A NONSTOP MAP AND THERE'S A LIST OF THE NONSTOPS.

I KNOW THAT NEXT YEAR WE HOPE TO HAVE AN ELECTRONIC FLIGHT GUIDE THAT WILL MAKE IT EVEN EASIER FOR CUSTOMERS TO GO AND SEE EXACTLY WHERE WE FLY AND THE DIFFERENT COMBINATIONS.

BUT WE DO HAVE IT OLD STYLE RIGHT NOW UP ON THE WEBSITE.

THANK YOU COMMISSIONERS.

ANYTHING FOR JAMIE TODAY? THANKS SO MUCH.

THANK YOU.

ALRIGHT, ITEM NUMBER FOUR IS JOURNEY WITH

[4. Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects Update provided by Lyn Estabrook, Deputy Chief Development Officer]

YOU MIGHT SOMETIMES HEAR IT, JONATHAN AS CIP AND, UM, ACTIVE PROJECTS UPDATE PROVIDED BY LYNN, ESTHER, BROOKE.

HELLO LYNN.

GOOD AFTERNOON EVERYONE.

UM, COMMISSIONERS, LYNN, ESTHER, BROOKE W, CHIEF OF DEVELOPMENT, AND I WANNA GO THROUGH A COUPLE OF PARTICULAR PROJECTS TODAY IF YOU WANNA MOVE, UM, TO THE NEXT, NEXT SLIDE.

SO THIS PROJECT IS ON IN YOUR PACKET.

IT IS ITEM EIGHT, IT'S AN RCA THAT IS BRINGING THE DESIGN TEAM.

THE, THE ARCHITECTURE ENGINEERING TEAM HAS ALREADY BEEN SELECTED, BUT WE WANTED TO HIGHLIGHT THIS PROJECT.

IT IS OUR UTILITY INFRASTRUCTURE CAMPUSWIDE.

WE ALSO, OF COURSE, LOVE ACRONYMS AS KNOWN AS THE UICW.

AND THIS PROCUREMENT, UM, IS FOR THE CONSTRUCTION TEAM THAT WILL BE PUTTING IN ALL OF THE MAJOR UTILITIES.

EVERYTHING FROM, UM, IT INFRASTRUCTURE TO, UH, WATER, STORM, WATER, UM, POWER, ALL OF THOSE DIFFERENT UTILITIES.

EVERY COLOR IN THAT LITTLE DIAGRAM IS A DIFFERENT COLOR.

SO THIS IS ANOTHER ENABLING PROJECT THAT WE'RE EXCITED TO MOVE FORWARD WITH.

AND WE'LL BE BRINGING THIS RCA AS YOU SAID IN YOUR PACKET TODAY.

NEXT, LET'S SEE.

UM, YEP.

YOU WANNA MOVE? HAVE A QUESTION WITH THAT PROJECT? YEAH.

YES, GO AHEAD.

GO BACK.

SO THE UTILITY INFRASTRUCTURE YES.

IS WATER, ELECTRICITY, TELECOM, WASTE, WASTEWATER, STORM WATER, WHAT ELSE ARE WE LOOKING AT? POWER, ELECTRICITY.

YEAH, ELECTRICITY, POWER.

UM, AND THIS HAS NOTHING TO DO WITH, WITH RECLAIMED WATER.

OKAY.

THIS DOESN'T HAVE ANYTHING TO DO WITH FUEL.

NO.

OKAY.

ALRIGHT.

[00:15:04]

IT'S PAGE NUMBER 31, BUT WE'RE GONNA STOP AT THE AIRFIELD INFRASTRUCTURE.

THERE WE GO.

OKAY.

THE AIRFIELD INFRASTRUCTURE.

I WANNA GO OVER THIS PROJECT IN A LITTLE BIT MORE DETAIL.

NEXT MONTH THERE'LL BE A, A REQUEST FOR COUNCIL ACTION IN YOUR PACKET.

FOR THIS PARTICULAR PROJECT, WE RECEIVED THE, UM, WHAT WE CALL THE GUARANTEE MAXIMUM PRICE FOR THIS PROJECT.

IT'S, UM, NUMBER ONE, WHICH IS 90% OF THE WORK.

AND WE WILL BE BRINGING THAT, UM, GMP GUARANTEEING MASTER PRICE TO YOU GUYS IN AUGUST.

UM, OCCLUDING ADDITIONAL AUTHORITY FOR THE DESIGNER.

UM, NEXT PICTURE.

SO THIS IS A GREAT, UM, ILLUSTRATION OF THE FINAL DESIGN CONCEPT AND I WANTED TO TALK A LITTLE BIT MORE ABOUT THIS.

THIS, UM, AIRFIELD INFRASTRUCTURE PROJECT IS CONSIDERED ENABLING PROJECT FOR THE A EDP, ALSO KNOWN AS THE AIRPORT EXPANSION DEVELOPMENT PROGRAM.

IT IS TO PREPARE THE DEVELOPMENT OF CONCOURSE B AND PRESERVE THE AIRFIELD CONNECTIVITY.

THIS PROJECT WILL CON CONSTRUCT NEW TAXIWAYS THAT WILL ALLOW THE CLOSURE OF THE EXISTING MIDFIELD TAXIWAYS IN ORDER TO BUILD CONCOURSE B.

THE PROJECTS INCLUDES DEMOLITION OF EXISTING INFRASTRUCTURE, CONSTRUCTION OF NEW AIRFIELD, TAXIWAY PAVEMENT, AIRFIELD RATED BRIDGE STRUCTURES, SERVICE ROADS, UTILITIES, RECONSTRUCTION OF SOUTH CAMPUS DRAINAGE, SECURITY IMPROVEMENTS, AND UPDATES TO THE AIRFIELD LIGHTING AND SIGNAGE PROGRAM.

UM, FOLLOWING THE PRELIMINARY ENGINEERING, THE PROJECT WAS DETERMINED THAT ADDITIONAL INFRASTRUCTURE AND DETAILED CONSTRUCTION PHASING WAS NEEDED.

AND NEW PROJECT PHASING PLANS WERE DEVELOPED IN COORDINATION WITH AIR OPERATIONS AND THE FAA AIR TRAFFIC CONTROL.

THE NEW CONSTRUCTION PHASING PLAN INCLUDES REROUTING OF UTILITIES, REROUTING ACCESS, ROADWAYS, PARKING, AND ALLOWING FOR CONSTRUCTION OF TAXIWAYS AND BRIDGES TO START CONSTRUCTION AND PRO AND PROGRESS OUTSIDE OF THE OPERATION OPERATIONAL FOOTPRINT.

WHAT THAT MEANS IS THAT THE CONSTRUCTION CAN BE NON, UH, NON-SECURE SO THAT WE CAN GET POTENTIAL, UM, BIDDERS AND CONTRACTORS THAT DON'T HAVE TO GET BADGES.

UM, THE NOTED SCOPE CHANGES, UM, BETWEEN THE ORIGINAL, UM, 2022 AND 22 AND TWO FOUR PROJECTS AND THE ELEVATION, UM, EVALUATION OF THE PROJECT RISKS HAVE RESULTED IN AN INCREASE IN THE OVERALL PROJECT COSTS, BUT IT'S STILL WITHIN THE PROGRAM COSTS.

SO YOU WILL SEE, UM, THE RCA FOR THE TOTAL GUARANTEED PRICE AND, UM, FOR THE DESIGN TEAM TO DO THAT FINAL GMP AND THAT, UH, DESIGN THAT YOU SEE HERE ON SITE THIS NEXT, NEXT, SO THIS GOES OVER WHAT WILL BE COMING, I KIND OF HIGHLIGHTED AT THE SCOPE THAT'S INVOLVED IN THOSE TOTAL DOLLAR VALUES.

UM, AND THE TOTAL PROJECT, UH, AUTHORITY, NOT TOTAL PROJECT COST, TOTAL AUTHORITY FOR THAT CONTRACT WOULD BE 320 MILLION NEXT.

SO WHAT'S GREAT ABOUT THIS PROJECT IS THAT WE CURRENTLY HAVE FAA GRANTS FOR THE DESIGN.

UM, IT'S 80% TO 70 TO 20%, SO THAT'S COVERED BY FAA.

THEY'RE PAYING FOR 80% OF THE DESIGN AND WE ARE SEEKING ADDITIONAL GRANT MONEY I AND IN THE PROCESS OF FINALIZING OUR APPLICATION FOR UP TO $200 MILLION FOR CONSTRUCTION COSTS.

ANY QUESTIONS ON THE MIDFIELD BEFORE I GO ON TO THIS ONE? I DO WANNA GO ON TO THIS ONE, BUT I WANNA ANSWER ANY QUESTIONS ON THE MIDFIELD BEFORE WE MOVE ON.

I CAN'T SEE THE COMM COMMISSIONERS ONLINE.

ANYONE FOR LYNN? UM, THANK YOU VERY MUCH FOR THIS DIAGRAM.

I'M ASSUMING THAT EVERYTHING IN BLUE IN THE DIAGRAM IS NEW BUILD AND EVERYTHING IN WHITE IS EXISTING TO REMAIN IN THE, IF YOU WANNA GO BACK, THIS IS A COUPLE OF PAGES.

UH, IT'S THE THAT ONE.

SO YES.

SO EVERYTHING IN BLUE IS POINTING OUT THINGS THAT WE'RE BUILDING FROM THE TAXIWAYS TO THE BRIDGES, TO THE ROADS, TO FENCING, TO CONTRACTOR STAGING, UM, PARKING AND STAGING FOR CONTRACTORS TO, UM, VEHICLE ACCESS ROADS, UH, CONNECTORS TO THE MAINTENANCE RAMP, ALL OF THOSE ITEMS. SO IT'S NOT JUST BUILDING THE NEW TAXIWAYS, WHICH IS OVER TWO MILES OF CONCRETE, BUT ALL THOSE OTHER THINGS ON THAT IMAGE.

AND I'M ASSUMING VSR IS VEHICLE SERVICE ROAD AND THAT'S TIED TO EACH OF THE TAXIWAYS

[00:20:01]

OKAY.

THANKS.

ANY OTHER QUESTIONS ON THE MIDFIELD? TAXIWAYS? OKAY, WE CAN MOVE ON TO THE CONCOURSE.

SO THE CONCOURSE, WE WILL BE BRINGING AN RCA FOR THE DESIGN TEAM NEXT, UM, MONTH.

WE MAY BRING THE CONSTRUCTION TEAM, BUT WE MAY HAVE TO PUSH THAT TO TO SEPTEMBER DUE TO INTERVIEWS.

UM, IT LOOKS LIKE THEY WILL BE DOING INTERVIEWS FOR THOSE CANDIDATES, UM, WHICH IS EXCITING.

WE'VE GOT SOME GREAT CANDIDATES FOR THAT.

SO THE CONCOURSE WILL BE BRINGING THE DESIGN, UM, TO YOU GUYS NEXT MONTH.

AND THAT CONCOURSE IS FOR THE NEW MIDFIELD CONCOURSE B.

IT'S FOR A MINIMUM OF 20 GATES, UM, UP TO POTENTIALLY 30 IF WE CAN AFFORD THAT.

UM, AND SO THE BASE SCOPE OF WORK FOR THIS CONCOURSE B, LIKE I SAID, IS MINIMUM OF 20 GATES.

IT INCLUDES UNDERGROUND, TUNNEL AND SER SERVICING PASSENGERS, BAGGAGE, AND UTILITIES.

THE TUNNEL WILL CONNECT AND INTEGRATE INTO THE EXISTING BARBER JORDAN TERMINAL AND CONCOURSE B THROUGH AN INTERFACE INFRASTRUCTURE.

ADDITIONAL SCOPE INCLUDES APRON WORK, TEMPORARY HOLD ROOM FACILITIES, AND BASED ON FORECAST DEMAND AND OPERATIONAL NEEDS.

THE POTENTIAL AND OPTION FOR AN ADDITIONAL 10 MORE GATES DEPENDING ON THE AIRPORT EXPANSION DEVELOPMENT PROGRAM SCHEDULE AND OTHER FACTORS.

ADDITIONAL SCOPE OF WORK FOR EARLY DESIGN OF REMOTE TEMPORARY HOLDER ROOM FACILITY TO ENABLE PHASING, UH, ON THE NEAR, UM, ON NEAR THE MAINTENANCE ON OR NEAR THE MAINTENANCE RAMP SERVING MULTIPLE GATES MAY BE REQUIRED.

SO THE DESIGN PROFESSIONAL WILL OFFER FULL ARCHITECTURAL AND ENGINEERING SERVICES ACROSS DESIGN, CONSTRUCTION AND POST-CONSTRUCTION PHASES OF THE PROJECT ENCOMPASSING THE NEW CONCOURSE, THE TUNNEL, THE APRON WORK, ANY TEMPORARY, UH, HOLD ROOM FACILITIES AND OTHER ASSOCIATED INFRASTRUCTURE.

SO THE CONSULTANT WILL WORK ALONGSIDE A CONSTRUCTION MANAGER AT RISK FOR THE PROJECT, STARTING WITH PRE-CONSTRUCTION SERVICES THROUGH THE WARRANTY PERIOD.

YOU WANNA GO TO THE NEXT IMAGE.

SO THESE ARE SOME CONCEPT DRAWINGS THAT WE HAVE THAT THAT'S WHAT WE CALL THE INTERFACE.

THIS IS THE CONNECTION TO THE EXISTING TERMINAL, HOW YOU WOULD GET DOWN TO THE TUNNEL, THE VERTICAL CIRCULATION AND OTHER, UM, SERVICE AREAS AS WELL AS POTENTIAL, UM, CONCESSION AREA AS WELL.

NEXT, THIS IS A CONCEPT DRAWING THAT SHOWS THE EXISTING BARBARA JORDAN TERMINAL ON THE LEFT AND THE NEW CONCOURSE ON THE RIGHT AND THE TUNNEL THAT WOULD CONNECT THE OTHER COLORED SPACE ON THE LEFT IS THE CONCEPT AREA FOR THAT INTERFACE.

UM, THAT INCLUDES THE CONCESSION SPACE AND OTHER SPACE.

IT'S ABOUT A 900 FOOT, UM, WALK FROM BUILDING EDGE TO BUILDING EDGE.

IT'S LESS WHEN YOU DEDUCT, IT'S AROUND 600 FEET WHEN YOU DEDUCT THE INTERFACE SPACE ITSELF NEXT.

SO WE ARE AGAIN LOOKING FOR THE DESIGN CONSULTANT TO BE BRINGING YOU GUYS AND THEN THE CONTRACTOR PROBABLY THE IN SEPTEMBER.

AND WE HAVE SHORTLISTED THOSE FIRMS AND THEY'LL BE INTERVIEWED ON JULY 23RD FOR THE CONSTRUCTION.

AND WE'RE EXCITED TO MOVE FORWARD WITH THIS, UM, PROJECT.

AND THOSE WERE THE ONES I WANTED TO HIGHLIGHT TODAY.

ANY QUESTIONS ON THE CONCOURSE? YES.

I HAVE A QUESTION ABOUT, UH, WAIT, COMMISSIONER, ER, DO YOU HAVE A QUESTION FOR LYNN? LYNN? I DON'T.

UM, I, IT'S A LITTLE HARD ON THE DRAWING.

I, I THINK THE TUNNEL INTERFACE FROM BARBARA JORDAN WHERE YOU WOULD BEGIN THE PROCESS OVER THE TERMINAL BE THAT'S AFTER SECURITY, CORRECT? CORRECT.

IT IS AFTER SECURITY.

IT'S KIND OF RIGHT IN THE MIDDLE.

IF YOU ARE FAMILIAR WITH THE CONCOURSE TODAY, THERE'S A CURVED AREA.

ONCE YOU GET THROUGH CHECKPOINT, EITHER TO WEST OR TO EAST, IT IS RIGHT IN THE CENTER OF THAT CURVED AREA IS WHERE THE NEW ADDITIONAL SQUARE FOOT WILL BE BUILT AND THE INTERFACE WILL BUMP OUT FROM THE BUILDING AND YOU'LL BE ABLE TO CIRCULATE DOWN.

COOL.

THANK YOU.

AND DID I UNDERSTAND THAT THERE'S CONS THERE? THERE'S, UH, PROPOSED CONCESSIONS IN THE TUNNEL? NO, IN THE, IN THE LEVEL OF THE CONCOURSE.

OKAY.

SO IN THAT, OKAY, ALRIGHT.

IF YOU WANNA GO BACK A COUPLE, LET'S SEE, I AGAIN,

[00:25:04]

THERE WE GO.

THAT PURPLE SPACE, THAT WOULD BE POTENTIAL CONCESSION SPACE.

THE SORT OF BEIGE CREAM SPACE IS CIRCULATION THOSE OTHER COLORS OR ELEVATORS, ESCALATORS, UM, OTHER, UH, HVAC SPACE SUPPORT SPACE.

SO THAT'S THE CONCEPT WE HAVE FOR THAT INTERFACE.

OH, SO THERE'S LIKE A, A NODE.

IT COULD BE RESTAURANTS, IT COULD BE SO IT'S A MULTI-STORY NODE.

YES.

THAT WILL ALLOW FOR THE TUG AND AND SERVICES BELOW CORRECT.

AT GRADE.

BUT HOW, SO THAT WOULD JUST MATCH THE EXISTING HEIGHT OF THE, OF THE BARBARA JORDAN TERMINAL? YES.

THIS LEVEL, THIS IS MATCHING THE SAME ELEVATION AS THE BARBARA JORDAN CONCOURSE LEVEL.

SO WHERE ALL THE HOLD ROOMS ARE.

MM-HMM.

.

AND THAT WILL JUST GROW AND YOU'LL BE ABLE TO WALK OUT, POTENTIALLY HAVE RESTAURANTS OR STORES OR GET IN THE ELEVATORS ESCALATORS AND GO DOWN TO THE TUNNEL.

OR YOU CAN GO UP TO A POTENTIAL CLUB REVENUE GENERATING SPACE AS WELL.

THIS IS VERY SIMILAR TO WHAT SALT LAKE IS BUILDING.

NOW, I WAS GONNA ASK YOU IF THERE'S A PRECEDENT FOR THAT.

I HAVE NOT EXPERIENCED ANYTHING LIKE THAT WHERE YOU CAN BE, UM, OUT AT THE LENGTH OF THE JET WAY ON, ON A FLOOR LEVEL STARING AT THE SIDE OF A JET, LIKE AT THE LENGTH OF A JET.

THIS SEEMS NEW, LIKE A NEW CONCEPT.

THERE ARE OTHER AIRPORTS THAT DO IT AND THAT CLUB SPACE.

WE'VE SEEN THE CLUB SPACE.

I'VE, I'VE TOURED OTHER, UH, EXECUTIVES HAVE TOURED AT THE AUSTIN AIRPORT, UM, AT SALT LAKE AND IT IS PRIME REAL ESTATE.

AWESOME.

SO WE'RE EXCITED TO BE ABLE TO HAVE THAT POTENTIAL REVENUE GENERATING SPACE.

PEOPLE WANNA SEE THE SIDES OF THE PLANE, .

OKAY.

ALRIGHT, THANK YOU.

OTHER QUESTIONS ON THE CONCOURSE OR ON THE PACKAGE AS A WHOLE? COMMISSIONERS.

THANK YOU.

THANK YOU.

ALL RIGHT.

AND HOW ARE, HOW'S THE WESTGATE INFILL AND THE THREE GATE, THE WHATEVER THE, THE THREE GATE EXPANSION AND THE INFILL PROJECT GOING? THEY'RE GOING GREAT.

THE WESTGATE EXPANSION, WHICH IS ON THE VERY END OF THE CONCOURSE, THAT PROJECT IS, UM, GOING TO BE HAVING STEEL STARTING TO DELIVER IN THE NEXT TWO WEEKS, AND THEY WILL START PUTTING THE STEEL UP.

SO THAT'S REALLY EXCITING.

AND IN THE WEST INFO, WHICH IS THE PROJECT THAT PROVIDES MORE SECURITY SCREENING AREA, UM, THAT PROJECT HAS STARTED DIGGING THEIR PEERS.

SO THAT'S ALSO VERY EXCITING.

THANK YOU FOR THAT UPDATE.

UM, COMMISSIONERS, ANY QUESTIONS FOR LYNN? THERE'S A LOT GOING ON AND A LOT COMING FORWARD.

SO TODAY WE'RE GONNA BE LOOKING AT ITEM EIGHT BASED ON WHAT YOU DISCUSSED.

AND YOU'LL ALSO, ITEM 10 IS, UM, PART OF THE OVERALL PROGRAM, BUT IT'S NOT A PROJECT, IT'S A SERVICE.

SO I CAN MORE ABOUT THAT WHEN WE GET TO ITEM 10.

VERY GOOD.

WELL, NOW WE'RE UP TO ITEM FIVE.

WE

[5. Update on cargo facility lease agreements with Air General, Inc. and DHL Express, Inc. presented by John Gallo, Commercial Management Division Manager]

YEP.

THANKS, JOHN.

GOOD AFTERNOON COMMISSIONERS.

UH, JOHN GALLO, DIVISION MANAGER FOR COMMERCIAL MANAGEMENT.

UM, NEXT MONTH, UH, THERE'LL BE TWO LEASES GOING TO COUNCIL AND BACK HERE TO COMMISSION FOR YOUR APPROVAL.

UH, SO THIS IS A BRIEFING TO GIVE YOU SOME BACKGROUND ON THESE TWO LEASES.

THAT'LL BE COMING, UH, NEXT MONTH.

NEXT SLIDE.

UH, THE FIRST IS WITH A COMPANY CALLED AIR GENERAL.

UH, THEY WILL BE LEASING A PORTION OF AROUND, UM, 17 AND A HALF THOUSAND SQUARE FEET OF SUPPORT OF BUILDING TO SUPPORT THEIR CURRENT AND FUTURE NEEDS.

UH, AIR GENERAL IS AN INTER, OUR INTERNATIONAL BELLY FREIGHT COMPANY.

UH, SO AIRLINES SUCH AS BRITISH AIRWAYS, KLM, UM, UH, WILL, WILL PACK THE BELLY OF THE AIRPLANE WITH CARGO, UH, AIR GENERAL, UH, TAKES THAT CARGO OFF THOSE AIRPLANES AND THEN PROCESSES THEM, UH, DOES THE REQUIRED CUSTOMS INSPECTIONS AND SO FORTH.

UH, THEY'RE CURRENTLY A LEASE AT, UH, ONE OF OUR CARGO FACILITIES THAT'S OPERATED BY A CARGO DEVELOPMENT FIRM CALLED REAL TERM.

AND, UH, THEY'VE OUTGROWN THAT SPACE.

SO THIS WILL ABOUT TRIPLE THEIR OPERATION HERE IN AUSTIN, UH, WHICH IS A, A GOOD REFLECTION OF THE INTERNATIONAL CARGO THAT WE HAVE COMING THROUGH THE AIRPORT THESE DAYS.

SO IT'LL BE A, UH, 10,000, OR EXCUSE ME, UH, A 10 YEAR, UH, TERM, UH, THAT'LL GENERATE ABOUT $4.5 MILLION IN RENTAL REVENUE DURING THAT 10 YEAR, YEAR TERM.

NEXT SLIDE.

AND THESE ARE JUST SOME, UH, PHOTOS, UH, TO PROVIDE YOU, UM, UH, OF THE, OF THE NEW CARGO FACILITY IN THE, IN THE AREA OF THE BUILDING THAT THEY'LL BE LEASING.

UH, THEY'LL STILL HAVE TO DO THEIR TENANT FINISH OUTS AND, UH, SUPPORT SPACE INSIDE THE BUILDING.

UM,

[00:30:01]

UH, SO EXCITED TO TO PROVIDE THAT, UH, TO AIR GENERAL.

NEXT SLIDE.

UH, THE NEXT IS A LEASE WITH, UH, DHL EXPRESS.

I'M SURE Y'ALL HAVE ALL HEARD OF DHL.

THEY'RE AN INTERNATIONAL CARGO FIRM.

UM, THE LIKES OF UPS AND FEDEX.

UM, THEY CURRENTLY LEASE SPACE IN OUR CARGO PORT BUILDING, UH, OFF OF CARGO AVENUE.

UM, BACK IN 2017, WE PURCHASED THESE BUILDINGS, THE AIRPORT DID.

AND, UH, WHEN WE PURCHASED THESE BUILDINGS FROM THE CARGO DEVELOPER AT THAT TIME, WE INHERITED THEIR, THEIR LEASES, UH, THAT THEY HAD WITH, UH, THEIR TENANTS.

AND SO SOME OF THESE LEASES ARE NOW EXPIRING, THE FIRST OF WHICH IS DHL.

SO WE'RE, THIS WILL BE THEIR FIRST LEASE, UH, DIRECTLY WITH THE AIRPORT.

SO THEY LEASE AROUND, UM, 44,000 SQUARE FEET OF, UH, SUPPORT SPACE, UM, AT THAT FACILITY AND AROUND 58,000 SQUARE FEET OF, OF AIRCRAFT APRON SPACE.

UH, THEY PROVIDE, UH, INTERNATIONAL AND DOMESTIC CARGO FOR, FOR THE AUSTIN COMMUNITY.

AND THIS WILL BE A FIVE YEAR TERM WITH A FIVE YEAR OPTION FOR A TOTAL OF 10 YEARS THAT IF, UM, IF WE JUST DO THE FIVE YEAR TERM, IT'LL GENERATE $4.4 MILLION IN RENTAL REVENUE.

AND IF WE DO THE FULL 10 YEAR TERM, THAT'LL GENERATE ABOUT $8.8 MILLION IN RENTAL REVENUE.

NEXT SLIDE.

AND THIS IS WHERE THEY'RE CURRENTLY LOCATED.

SO THEY'RE JUST LEASING WHAT THEY ARE, WHAT THEY CURRENTLY HAVE.

UH, SO, UM, THEY'RE KIND OF IN THAT MIDDLE BUILDING THERE.

IT'S KINDA HARD TO SEE OUTLINED IN RED, UM, IN THE ASSOCIATED APRON SPACE THAT'S, UH, THAT THEY'LL BE LEASING AS WELL.

AND I BELIEVE THAT IS IT HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

SO IF, UM, A G I'S LEAVING THE EXISTING FACILITY AND MOVING INTO THE NEW BUILDING, IS THAT CORRECT? YES.

AIR GENERAL WILL BE LEAVING THAT BUILDING, UH, AND TRANSITIONING OVER TO THE NEW FACILITY.

WILL, WILL THE, ARE YOU DOING ANY CHANGES TO THE, DO YOU HAVE A TENANT FOR THE, THE SPACE THAT THEY'RE VACATING? UM, THAT ISN'T UNDER OUR PURVIEW, THAT'S UNDER REAL TERMS PURVIEW THAT OH, THAT'S CORRECT.

THAT SINCE THEY'RE A GOT IT THIRD PARTY OPERATOR, THEY'LL HAVE TO, UH, LEASE OUT THEIR VACANT SPACE.

OKAY.

UM, AND HOW MUCH, HOW MUCH SQUARE FOOTAGE IS LEFT IN THE NEW BUILDING FOR LEASING OUT? UM, AROUND 68,000 SQUARE FEET.

AND I'M CURRENTLY IN ACTIVE OF TALKS WITH DIFFERENT CARGO OPERATORS, UM, TO LEASE OUT THE REMAINDER REMAINING SQUARE FOOTAGE.

SO THESE TWO CONTRACTS ARE FOR ABOUT HALF OF THE SQUARE FOOTAGE AVAILABLE IN THE CARGO FACILITY.

THE NEW CARGO, WELL, DHL WILL STAY WHERE THEY CURRENTLY AT, WHICH IS NOT AT THE NEW FACILITY.

OKAY.

THAT'S AT AN OLDER FACILITY.

OKAY.

SO WHAT AIR GENERAL WILL BE TAKING ON IS ABOUT, I'D SAY ABOUT A THIRD OF THE BUILDING.

OKAY, GREAT.

UM, IS THIS COMP, IS THIS COMPETITIVE, UM, SQUARE FOOTAGE COSTS FOR LEASING CARGO SPACE WITH OTHER, UM, AIRPORTS? UH, ABSOLUTELY.

WE FOLLOW, UH, FAA POLICY AND GUIDELINES ON HOW WE SET OUR RENTAL RATES FOR OUR EXTERNAL PROPERTIES.

UM, WE USE FAIR MARKET VALUE, SO WE ESTABLISH RATES THROUGH, UM, UH, GROUND STUDIES OR MARKET STUDIES AND THROUGH APPRAISALS.

MM-HMM.

.

AND THEN AS IT RELATES TO THE NEW FACILITY, BECAUSE, UH, THE FAA ALSO ALLOWS, UH, FOR RENTS TO BE ESTABLISHED, UM, UH, FOR COST RECOVERY.

AND SO BECAUSE THE FACILITY WAS, UM, FINANCED THROUGH BONDS AND DEBT WE'RE ALLOWED TO, TO RECOVER THE COST OF THOSE, OF THAT DEBT.

AND SO WE'VE ESTABLISHED A RATE MODEL THAT ALLOWS FOR THAT TO HAPPEN, WHICH IS STILL COMPETITIVE.

I SEE.

I SEE.

OKAY.

SO THE FAA REGULATES THE, THE COST, THE CHARGE THEY JUST HAVE.

YEAH, THEY, THE WAY THE FAA STATES IS THEY HAVE DIFFERENT METHODOLOGIES, UM, THAT THEY ALLOW AIRPORTS TO SET THEIR RATES AT AND, UH, THEIR PREFERRED IS FAIR MARKET VALUE.

SO IF YOU HAVE A CARGO FACILITY THAT'S NOT ON AIRPORT PROPERTY, WHAT IS, YOU CAN CHARGE MARKET WITHOUT FAA OR, UM, IT'S GUIDANCE.

IF IT'S NO, IF IT'S ON AIRPORT PROPERTY, WE'D HAVE TO FOLLOW FA GUIDANCE.

BUT IF IT'S NOT, IF THERE'S A CARGO FACILITY THAT'S OUTSIDE OF THE AIRPORT, THEN THEY'RE FREE TO OKAY.

SET THOSE RATES AS THEY SEE FIT.

OKAY.

ALRIGHT, COMMISSIONERS, ANY QUESTIONS FOR JOHN? GOOD LUCK WITH THOSE CONTRACTS AND WE'LL SEE YOU NEXT MONTH, I GUESS WITH THAT.

THANK YOU.

THANKS FOR COMING AHEAD OF TIME.

GIVE US SOMETHING TO THINK ABOUT.

WE ARE ON TO DISCUSSION AND

[6. Discussion and possible action to approve the Airport Advisory Commission Annual Internal Review covering the period between July 1, 2023 thru June 30, 2024 and upcoming year’s goals.]

UM, AS YOU KNOW, THE CHAIR HAS TO PREPARE AN ANNUAL INTERNAL REVIEW TO THE CITY CLERK.

WE DISCUSSED THAT LAST MONTH.

I BELIEVE IT'S ATTACHED TO THIS DOCUMENT.

THANK YOU FOR YOUR INPUT.

UM,

[00:35:01]

WE DON'T NEED ONE.

I MEAN, IT'S JUST A FORMALITY THAT GOES TO THE CITY CLERK, BUT, UM, IF I WOULD ENTERTAIN A MOTION, UM, IF YOU WOULD LIKE TO ADOPT IT, 'CAUSE IT DOES CONTAIN THE GOALS THAT WE SET FORWARD AS A, AS A GROUP.

MADAM CHAIR, I APPRECIATE YOUR HARD WORK ON THIS AND HAPPY TO MAKE A MOTION IN SUPPORT.

THANK YOU.

SECRETARY ROSE, IS THERE A SECOND? THANK YOU.

UM, MR. YOUNG.

THANK YOU MR. ELLER TOO.

ALL IN FAVOR? OKAY.

THANK YOU ALL.

ALL RIGHT.

UM, ITEM NUMBER SEVEN IS

[7. Authorize execution of a contract for airfield lighting and fixture replacement parts with Global Access Supply, Inc., for up to five years for a total contract amount not to exceed $1,000,000. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established].]

UM, IS SOMEONE HERE TO, UM, OH, WE HAVE BRIAN LONG TODAY.

HELLO, MR. LONG? OKAY.

GOOD AFTERNOON, BRIAN LONG AIRPORT DEPUTY CHIEF INFRASTRUCTURE.

HOPE EVERYONE'S DOING WELL THIS AFTERNOON.

THIS IS A, UH, CONTRACT FOR SUPPLIES TO KEEP THE LIGHTS ON, KIND OF AN IMPORTANT THING.

SO WE, UH, HAVE DIFFERENT PROJECTS THAT WE UPGRADE THROUGH CAPITAL PROJECTS.

YOU SAW ONE THAT WILL ADD A LOT OF LIGHTS, BUT, UH, FROM THE MAINTENANCE PERSPECTIVE, WE HAVE TO, UH, KEEP SUPPLIES IN STOCK AND THIS IS A CONTRACT TO CONTINUE DOING THAT.

UM, SORRY, I, I DID NOT CALL FOR A, A MOTION TO ADOPT THIS ITEM.

DO I HAVE A MOTION AND THEN WELL, WE, WE, WE CAN, WE CAN RECEIVE THE PRESENTATION PRIOR TO THAT, BUT YEAH.

OKAY.

UM, ARE THESE LIGHTS, LED OR ENERGY EFFICIENT OR HAVE ANY OTHER CHARACTER OR THEY, I'M SURE THEY'RE WHATEVER IS CURRENT.

RIGHT.

ABOUT THREE OR FOUR YEARS AGO, WE DID A MAJOR AIRFIELD LIGHTING UPGRADE EFFORT AND PUT IN ON MANY LED LIGHTS.

UH, THE AIRFIELD DOES HAVE LOTS OF OLD LIGHTS STILL.

MM-HMM, , UM, UH, WE ARE CONSISTENTLY, UH, IMPROVING THOSE AS THE FIXTURES GO OUT.

UM, HOWEVER, THERE ARE SOME STILL OLD LIGHT BULBS THAT ARE NOT LED YET, BUT OUR GOAL IS TO REPLACE AND GET THE ENTIRE LIGHT, UH, LIGHTING SYSTEM UPGRADED TO THAT.

UH, YOU SAW THE MIDFIELD TAXIWAY PROJECT.

IT WAS A PERFECT LEAD, UH, FOR THIS DISCUSSION BECAUSE, UH, THAT WILL OF COURSE INCLUDE ALL NEW, UH, LIGHTING, UH, FIXTURES AS WELL.

SO IT, THE, UH, THE OLDER SYSTEMS ARE TYPICALLY THE ONES, NOT THAT THE ARE ON THE RUNWAYS, IT'S THE ONES THAT ARE ON, UH, THE TAXIWAYS.

UH, IN FACT, YOU'RE AT NIGHT, THE AIRPORT LOOKS AMAZING, UH, BECAUSE YOU'VE GOT SO MANY THINGS GOING ON AND NAVIGATIONAL REQUIREMENTS, UH, THAT WE MUST MEET.

OKAY.

DO, I'D LIKE TO ENTER, DO WE HAVE A MOTION TO ADOPT THIS ITEM NUMBER SEVEN FOR, UM, AIRFIELD LIGHTING AND FIXTURE REPLACEMENT PARTS? UH, COMMISSIONER VALDEZ SECOND ENNI.

UH, ANY DISCUSSION OR QUESTIONS FOR MR. LONG TODAY ABOUT THIS? OKAY.

ALL IN FAVOR? UH, ABSTAIN? OPPOSED? CAN I, CAN I ASK A QUESTION? OH, SURE, SURE, SURE.

UM, WE'LL, WE'LL RETAKE THE VOTE.

I, I APOLOGIZE FOR, SORRY ABOUT THAT.

I WAS PROCESSING IT.

SO, UH, FOR THE LAST DESCENDANTS, FOR THE GOODS REQUIRED FOR THE SOLICITATION, THERE'S NO SUBCONTRACTING OPPORTUNITIES AND NO SUBCONTRACTING GOES, WERE ESTABLISHED.

UM, I KNOW THAT I ASKED, I'M TRYING TO UNDERSTAND THAT THIS WHOLE BIG AREA, RIGHT? SO, UH, IS THIS BECAUSE OF THAT THE REGISTERED IN THE POOL IS, UM, THE COMPANY THAT REGISTERED IN THE POOL THAT WAS NOT ENOUGH? OR HOW DOES THAT CONCLUSION WAS MADE? THAT'S A GOOD QUESTION.

UM, A LOT OF OUR, UH, ESPECIALLY ON A SUPPLY CONTRACT FOR AIRFIELD LIGHTING, YEAH, IT'S A VERY SMALL WORLD OUT THERE OF CONTRACTORS THAT SUPPLY SPECIFICALLY AIRPORT LIGHTING TYPE INFRASTRUCTURE.

UH, THERE, THERE ARE DIFFERENT VENDORS AND THAT'S WHY IT WAS THROUGH A BID INSTEAD OF JUST A, A PROCUREMENT THAT WAS NOT THROUGH A BID.

UH, YOU, YOU NOTICED THIS WAS A REBID AND, UH, THAT'S BECAUSE, UH, THERE WAS, UH, THERE WERE NOT VERY MANY VENDORS, AND SO IT WAS AN ATTEMPT TO TRY TO GET AS MANY AS WE COULD.

UH, HOWEVER, THE SPECIALTY PARTS, AND ESPECIALLY THE OLDER, UH, PARTS THAT ARE REQUIRED AS PART OF THE CONTRACT ARE JUST HARD TO FIND AND NOT MANY PEOPLE ARE ABLE TO SUPPLY THEM PER THE CONTRACT TERMS. SO THAT, THAT'S, AND IF IN THE FUTURE WHEN SOME QUALIFIED CANDIDATE SURFACE, IS THERE ROOM TO RECONSIDER DURING THE PROJECT OR

[00:40:01]

BUT THAT WE, WE GO THROUGH THAT PRETTY QUICKLY.

SO AS, UH, NEW CONTRACTS COME UP, WE ALWAYS LOOK FOR THOSE OPPORTUNITIES AND WE WORK WITH OUR, UH, MWBE, UH, TEAM TO FIND OUT IF THIS IS A CONTRACT THAT WOULD BE GOOD FOR INCLUDING EVERYONE ON THE REGISTRY.

BUT, AND WE, WE ALWAYS LOOK FOR THAT AND OUR, OUR PROCUREMENT TEAM, UH, DOWNTOWN GUIDES US AS INTO THAT AS WELL.

UM, HOWEVER, WHEN IT COMES TO SPECIALTY PARTS, THEY DO A, THEY LOOK AT WHAT'S ON THE REGISTER, BUT THEY LOOK BEYOND THAT AND TRY TO FIND OTHER, UM, AREAS WHERE WE COULD HAVE MORE INVOLVEMENT.

AND THAT'S WHERE IT GETS DIFFICULT ON THESE SPECIALTY ITEMS. UNDERSTAND.

AND LAST FOLLOW UP QUESTION IS, IS THERE A PLACE WHERE YOU CAN, UM, YOU KNOW, SEE THE TOP DEMANDED ITEMS THAT NOT ONLY AIRPORT, BUT WHOLE CITY OF AUSTIN IS, UH, PROCURING? IS THERE A PLACE? YES.

YEAH.

SO THERE'S A, THE, UH, AUSTIN VENDOR CONNECTION AND, UH, YOU KNOW, OUR PRO, OUR PROCUREMENT TEAM WITH THE AIRPORT WORKS WITH THE DOWNTOWN PROCUREMENT TEAM.

AND, UH, WE, WE PUT ALL OF OUR SOLICITATIONS ON ALL OF THE CITY, UH, SITES, AND THEY FOLLOW THE, THE, ALL THE FEDERAL, STATE AND CITY RULES TO MAKE SURE THAT, UM, ALL THOSE SOLICITATIONS ARE ADVERTISED WELL.

RIGHT.

AND AVAILABLE.

THAT PART I, I'M AWARE, BUT IS THERE, UM, A RANKING THE LIST TO, UM, TO SUMMARIZE ON THE DEMAND LIST, MOST WANTED, MOST NEEDED ITEMS, UM, PROCURED BY THE CITY OF AUSTIN, YOU KNOW, SO THAT I SEE WHAT YOU'RE SAYING.

MM-HMM.

, I THINK ONE WAY TO DO THAT.

I THINK THERE'S ALSO, ON THAT SAME SITE, THE ONLINE CHECKBOOK MM-HMM.

.

AND SO I THINK THEY BREAK THOSE DOWN BY CODES TO WHERE YOU COULD LOOK AT THE, THE DOLLAR SPENT AT LEAST ON, ON THOSE SERVICES.

THAT MIGHT BE A WAY TO LOOK AT IT.

I'M NOT AWARE OF ANYTHING THAT IS RELATED TO AN ACTUAL QUANTITY, UH, OPTION.

ALL RIGHT.

THANK YOU SO MUCH.

I'M, I'M GUESSING THAT TO RESPOND TO THAT, THAT'S PROBABLY 'CAUSE A LOT OF THE EQUIPMENT AND SUPPLIES ARE PROPRIETARY TO WHATEVER THE EXISTING EQUIPMENT IS, YOU KNOW, SO HARD TO KNOW.

UM, I DID LOOK UP GLOBAL ACCESS SUPPLY.

IT LOOKS LIKE THEY'RE IN LA COUNTY.

THEY PROBABLY HAVE THE BENEFIT OF BEING ABLE TO IMPORT THINGS QUICKLY FROM, YOU KNOW, THE PORT OF LOS ANGELES AND THEY CLAIM ON THEIR WEBSITE TO BE A SMALL BUSINESS.

SO, UM, AT LEAST, UM, WHO THEY HAVEN'T BEEN GOBBLED UP BY SOMETHING LARGER YET.

UM, OKAY.

SO WE HAVE A, WE DO WE HAVE A MOTION AND A SECOND? WE DO.

UM, IS THAT A SATISFACTORY YES.

YEAH.

OKAY.

THANK YOU FOR THOSE QUESTIONS.

ALL IN FAVOR OF, UM, THIS ITEM.

IT LOOKS LIKE EVERYBODY.

THANK YOU.

THANK YOU.

ALL RIGHT.

UM, THIS ONE HAS A LOT MORE ZEROS.

ITEM NUMBER EIGHT

[8. Authorize negotiation and execution of a contract for preconstruction and construction services for the Airport Expansion and Development Program Utility Infrastructure Campus Wide project with Sundt/Archer Western, a Joint Venture, for a total contract amount not to exceed $120,000,000. [Note: This contract will be awarded in compliance with the requirements of 49 CFR Part 26 (Disadvantaged Business Enterprise Program) and City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 9.89% DBE participation].]

UM, THEY HAVE MET AT 9.989%, UH, DBE PARTICIPATION.

UM, COMMISSIONERS, DO I HAVE A MOTION TO APPROVE THIS CONTRACT? IS THERE A MOTION? COMMISSIONER ENNIS SECOND ELLER, DO WE HAVE ANY DISCUSSION ON THIS CONTRACT? I HAVE A COUPLE OF QUESTIONS.

I HAD THE OPPORTUNITY TO TALK BRIEFLY WITH SHANE HARON ON MONDAY ABOUT THIS CONTRACT.

IT IS A JOINT VENTURE.

THE, THIS COMPANY, THESE COMPANIES DO A GOOD DEAL OF WORK IN TEXAS, UH, FOR TDOT, BUT THEY ARE ALSO OWNED, I BELIEVE, BY AN UMBRELLA ORGANIZATION, ANOTHER BIG GROUP THAT IS WAL, WHO'S WALSH.

OH, I'M GONNA ASK SHANE.

I'M, I'M GONNA ASK SHANE ABOUT THIS UNLESS LYNN, UNLESS YOU PREFER TO ANSWER THAT.

OH, RED IS, RED IS ON JUST A, A BRIEF COMPANY PROFILE FOR FOR THE COMMISSIONERS YEAH.

TO UNDERSTAND WHO THE, WHO THESE FOLKS ARE.

YEAH.

THIS IS A JOINT VENTURE.

AND, UH, JUST TO GIVE A LITTLE BIT OF BACKGROUND, SUN HAS DONE OUT AT THE AIRPORT, UH, ORIGINALLY THE EAST RUNWAY IN, IN APRON WAS DONE BY SUN.

UH, SUN HAS DONE A LOT OF WORK.

UH, THEY'RE AN ARIZONA COMPANY, BUT

[00:45:01]

THEY HAVE A, A MAJOR PRESENCE IN, UH, TEXAS WITH, UH, A SAN ANTONIO BE IN THEIR REGIONAL OFFICE.

UH, ARCHER WESTERN IS ALSO, THEY, THEY ALSO PART OF WALSH AND ARCHER WESTERN HAS DONE A LOT OF, UH, UH, AIRPORT WORK AS WELL.

UH, SPECIFICALLY IN TEXAS.

UH, UH, THEY'VE DONE A LOT OF DFW WORK AND THEY'VE DONE WORK IN SAN ANTONIO AS WELL.

UM, I THINK THIS WILL BE THE FIRST TIME THEY'VE DONE WORK HERE AT, UH, AUSTIN.

UH, BUT TOGETHER BOTH OF 'EM, UH, UH, HAVE A LOT OF, UH, UH, EXPERIENCE AT AIRPORTS AND UTILITIES, ET CETERA.

SO, UH, OKAY.

THANK YOU.

UM, JASON, WE HAVE A MOTION AND A SECOND.

I CAN'T REMEMBER.

WE DO, UM, COMMISSIONERS, ANY OTHER QUESTIONS FOR, UH, LYNN OR SHANE REGARDING THIS ITEM? UM, IS THERE A TIMEFRAME ON THE EXECUTION OF THIS CONTRACT? SO RIGHT NOW, THIS CONTRACT IS ON THE JULY 18TH COUNSEL AGENDA.

ONCE THAT PASSES, IT USUALLY TAKES ABOUT 45 DAYS TO GET A NOTICE TO PROCEED AND DO ANY FINAL CONTRACT SIGNING AND NEGOTIATIONS.

AND ONCE WE HAVE THE NOTICE TO PROCEED, THEY'LL START ON THEIR PRE-CONSTRUCTION SERVICES WITH THE DESIGN TEAM, WHICH IS HDR ON THIS PROJECT, WHICH WE'VE ALREADY APPROVED, WHICH YOU HAVE ALREADY APPROVED.

OKAY.

AND, UM, HOW IS THIS BEING FINANCED? THROUGH, THROUGH BONDS.

OKAY.

YEP.

OKAY.

OKAY.

AND WE ALSO HAVE A GRANT APPLICATION IN FOR DESIGN FOR THIS ONE AS WELL.

ALRIGHT.

COMMISSIONERS, I'D LIKE TO CALL THE VOTE.

UM, THOSE IN FAVOR OF THIS CONTRACT, AYE, THAT LOOKS LIKE EVERYONE, BUT I'LL JUST ASK IF YOU, ANYONE WANTS TO ABSTAIN OR SAY NO.

OKAY.

CONGRATULATIONS.

ALRIGHT, ITEM NUMBER NINE IS THE AUTHOR

[9. Authorize negotiation and execution of a contract for design, installation, implementation, and staffing of a virtual ramp control system with Saab, Inc. d/b/a Saab, for up to ten years for a total contract amount not to exceed $45,000,000. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2- 9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods and services required for this solicitation, there were insufficient subcontracting opportunities; therefore, no solicitation goals were established. However, the recommended contractor identified subcontracting opportunities].]

UM, THIS IS, UH, THERE ARE NO, UM, GOALS SET FOR THIS ITEM, UH, NO DBE OR MINORITY GOALS SET FOR THIS ITEM.

UM, COMMISSIONERS, DO I HA IS THERE SOMEONE HERE TO SPEAK TO THAT CONTRACT ITEM TODAY? THAT OKAY.

GREAT.

RICK BETTIS HERE, BUT FIRST I'M GONNA CALL FOR A MOTION.

DOES ANYONE MOVE TO APPROVE THE, THE RAMP? YES.

UM, SECRETARY ROSE, DO I HAVE A SECOND? YES.

OKAY.

UM, VICE CHAIR BROCK.

ALRIGHT.

UM, RICK BETTI, GO AHEAD.

GO ON.

GOOD AFTERNOON, COMMISSIONERS.

UH, SO THIS IS THE ITEM WE'VE BEEN TALKING ABOUT FOR SOME TIME NOW, AND, UH, WE WERE ABLE TO FAST TRACK IT ONTO CITY COUNCIL'S AGENDA THIS MONTH.

SO WE'RE BRINGING IT TO YOU AS QUICKLY AS WE COULD.

I THINK WE TALKED ABOUT IT LAST MONTH AS WELL.

UM, AS WAS MENTIONED, THIS IS A 10 YEAR CONTRACT.

IT'S A TWO YEAR TERM WITH FOUR TWO YEAR RENEWALS, UH, FOR A TOTAL OF $45 MILLION.

WHILE WE DID NOT IDENTIFY ANY SUBCONTRACTING OPPORTUNITIES, THE PROPOSER DID IDENTIFY A COUPLE OF OPPORTUNITIES THEMSELVES, AND SO THEY DID THEIR BEST EFFORT.

UH, AND THE REASON THAT THERE'S A DIFFERENCE THERE IS WE DON'T KNOW WHAT WE DON'T KNOW.

SO WHEN WE LOOK AT THE CODES AND WE LOOK AT WHAT THE SOLUTION WAS, WE COULDN'T SEE ANY OPPORTUNITIES.

BUT THE, THE PROPOSER WAS ABLE TO LOOK AT THEIR SCOPE OF WORK AND, AND, UH, IDENTIFY A COUPLE OF PLACES WHERE THEY MIGHT BE ABLE TO USE SMALLER, UM, DISADVANTAGED BUSINESSES.