* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:07] MY NAME IS PATRICK ROSE, [CALL TO ORDER] AND I'M PINCH HITTING FOR CHAIR PRICE. TODD. HELLO, WENDY. UH, THANKS FOR THOSE JOINING, JEREMY, JONATHAN, UH, REMOTELY AND THANKS FOR ALL OF US HERE IN PERSON. THIS IS A LIGHT HOLIDAY AGENDA. WE DO HAVE SOME GOOD, UH, DISCUSSION ON SOME IMPORTANT TOPICS, THOUGH SCHEDULED. AND WITH, UH, WITHOUT ANY FURTHER DELAY, LET'S TAKE A LOOK AT THE MINUTES [APPROVAL OF MINUTES ] AND IF THERE'S A MOTION OUT THERE, I'LL ACCEPT IT. THANK YOU. COMMISSIONER ERS THERE A SECOND, SCOTT. GREAT. ALL IN FAVOR? AYE. ANY OPPOSED? MOTION PASSES. GREAT. LET'S MOVE TO THE STAFF [2. Briefing on October 2024 Financial Results presented by Rajeev Thomas, Chief Financial Officer] BRIEFINGS. UH, MR. THOMAS? YES, GOOD AFTERNOON COMMISSIONERS. UM, RAJEEV THOMAS, UH, CHIEF FINANCIAL OFF OFFICER FOR THE DEPARTMENT OF AVIATION. UH, SO I'M GONNA PRESENT THE OCTOBER, 2024 RESULTS. UH, THIS IS THE FIRST MONTH IN OUR NEW FISCAL YEAR FOR FISCAL YEAR 25. UM, SO STARTING WITH THE STATS, UM, PASSENGER UH, TRAFFIC WAS DOWN ABOUT 6%, UH, AND EMPLOYMENTS WERE DOWN ABOUT 6% SIMILAR TO WHAT WE SAW IN SEPTEMBER. UM, OUR DAILY DEPARTURES ARE ALSO DOWN ABOUT 11.6% VERSUS OCTOBER, 2023. UM, THAT CORRESPONDS WITH LANDING WEIGHTS TOO, AND LANDED WEIGHTS WERE DOWN ABOUT 6%, BUT, UM, CARGO VOLUME WAS UP AND THAT'S UP ALMOST 15% VERSUS OCTOBER 23. AND AS WE WE'VE MENTIONED IN PREVIOUS MONTHS, CARGO IS REALLY DOING VERY WELL AND IT'S SHOWING POSITIVE INCREASES ON THE OPERATING REVENUE SIDE. UM, THE OPERATING REVENUE CAME IN ABOUT $31.2 MILLION, UH, WHICH WAS A 9.3% INCREASE OVER THE PRIOR YEAR. SO THIS WAS A MONTH WHERE WE HAD F1, UH, AND ALSO SOME OF THE UT GAMES, UH, IF YOU RECALL. SO WE DID DO PRETTY WELL BECAUSE OF THAT. AND THIS IS TYPICALLY A HIGH MONTH FOR REVENUE BECAUSE OF, UM, THOSE EVENTS, UH, THAT TAKE PLACE IN THE MONTH OF OCTOBER, THE AIRLINE REVENUES WERE UP ABOUT 18%. A LOT OF THAT IS DUE TO THE RATE INCREASES THAT WE DID YEAR OVER YEAR. UH, YOU CAN SEE LANDING FEES IS UP ABOUT 13% AND TERMINAL RENTAL RATES IS UP ABOUT 21%. UH, LANDING FEES UP 13% IN SPITE OF THE LANDED WEIGHTS BEING DOWN ABOUT 8%. UH, PARKING, WE DID SEE SOME, YOU KNOW, TRANSACTIONS WERE DOWN ABOUT 5%, BUT WE HAD RATE INCREASES THAT TOOK EFFECT, UH, MID-YEAR LAST YEAR THAT OFFSET SOME OF THAT, UH, DECLINE IN THE VOLUME SIDE. UH, OUR TNC TRAFFIC, UH, CONTINUES TO INCREASE. IT WAS UP ABOUT 8% YEAR OVER YEAR. UH, RENTAL CAR REVENUE IS SLIGHTLY DOWN ABOUT 3%. UH, TRANSACTIONS WERE DOWN ABOUT 5% IN LINE WITH WHAT WE SAW WITH THE PASSENGER DECLINE AND FOOD AND BEVERAGE AND RETAIL. UM, UH, IN SPITE OF THE 6% DECLINE IN PASSENGERS, AS YOU CAN SEE, IT'S ROUGHLY ABOUT A 2% DECLINE IN THE FOOD AND BEVERAGE. SO IT HELD ITS OWN PRETTY WELL, UM, ADVERTISING REVENUE UP ALMOST 36%. SO IT'S IN IT'S EXCEEDING WHAT OUR INITIAL ESTIMATES WERE ON THAT SIDE. SO THAT'S A REALLY GOOD NEWS. AND ALSO THE RENTAL FEES, UH, OTHER RENTALS INCREASED BY ABOUT 9% YEAR OVER YEAR. SO OVERALL OPERATING REVENUE UP ABOUT 9.3%. UH, OUR AIRPORT OPERATING EXPENSES ARE, ARE ABOUT 13% WOR, UH, WORSE THAN PRIOR YEAR, WHICH WAS KIND OF EXPECTED. AND, AND IT'S ACTUALLY FAVORABLE TO BUDGET BY ABOUT $200,000 OR $294,000. UH, SO BOTTOM LINE, UM, IF YOU LOOK AT OUR SURPLUSES, IT'S IN LINE WITH WHAT WE DID LAST YEAR, UM, ABOUT $11.6 MILLION. AND LAST YEAR, UH, OUR SURPLUS WAS ABOUT $11 MILLION. SO OVERALL ON A, YOU KNOW, NET INCOME BASIS, UH, PRETTY GOOD RESULTS THOROUGH PRESENTATION. ARE THERE ANY QUESTIONS FOR MR. THOMAS ONLINE OR IN PERSON? ANY SURPRISES THERE FOR YOU, MR. THOMAS? ANYTHING JUMP OFF THE PAGE THAT WARRANTS FURTHER DISCUSSION? NO, I MEAN, YOU KNOW, WHAT WE HAVE SEEN IS, AS I MENTIONED BEFORE ON THE, ON THE UNEMPLOYMENT GROWTH SIDE, UM, I DID SEE A MOODY'S REPORT RECENTLY THAT CAME OUT AND, UM, AND THEIR OUTLOOK FOR 2025 IS CALLING FOR SLOWER GROWTH IN TERMS OF UNEMPLOYMENT'S NATIONALLY. UM, AND WHAT THEY ARE BASING THAT IS ON THE TRENDS THAT THEY ARE SEEING IN YEAR OVER YEAR GROWTH ON THE TSA NUMBERS. UH, SO THEY'RE SEEING A SLOWING TREND. SO THIS, YOU KNOW, AND WE ARE SEEING THIS IN OTHER AIRPORTS, THIS GROWTH KIND OF SLOW DOWN YEAR OVER YEAR ON THE PASSENGER [00:05:01] GROWTH. SO THIS IS NOT A SURPRISE WHEN YOU COMPARE IT TO WHAT IS HAPPENING AT, UH, NATIONALLY TOO. SO MM-HMM . AS YOU LOOK AT NEXT YEAR, THE REMAINDER OF THIS FISCAL FROM A CARGO STANDPOINT, YOU THINK THAT TREND WILL CONTINUE? I HOPE SO. , I THINK WE ARE, WE ARE SIGNING A LEASE ON THE EAST CARGO BUILDING PRETTY SOON, AND WE HAVE TWO TENANTS THAT WILL OCCUPY MOST OF IT. SO WE'LL SEE FULL OPERATIONS, YOU KNOW, RETURN, UH, YOU KNOW, IN, IN THOSE CARGO FACILITIES. AND I HOPE THAT TREND ON THE CARGO CONTINUES BECAUSE IT'S BEEN, I THINK SINCE APRIL OR SO WE'VE SEEN THIS DOUBLE DIGIT, ALMOST DOUBLE DIGIT GROWTH IN CARGO VOLUME, AND I'M HOPING IT CAN CONTINUE. MM-HMM . ANY OTHER COMMENTS OR QUESTIONS? THANK YOU, MR. THOMAS. THANK YOU. UM, MR. ALEXANDER, YOU'RE [3. Briefing on Air Service Update provided by Jamy Kazanoff, AUS Air Service Development] STEPPING IN HERE FOR THE NEXT ITEM, UH, COMMISSIONERS. GOOD AFTERNOON. JASON ALEXANDER, DEPUTY CHIEF OF AIRPORT AFFAIRS, UH, FOR THE DEPARTMENT OF AVIATION. I AM STANDING IN FOR, UH, JAMIE THIS EVENING. SHE CAN'T BE HERE TODAY. SHE WILL BE HERE IN JANUARY. UH, BUT I'LL DO MY BEST TO IMPERSONATE HER HERE. UM, READ THROUGH A COUPLE HIGHLIGHTS THAT SHE'S PROVIDED FOR ME. UH, I THINK ONE OF THE KEY MESSAGES THAT WE'VE, UH, REITERATED AND WE'LL DO SO AGAIN HERE TODAY IS THAT THE AIRLINES ARE CONTINUING TO RIGHTSIZE, UH, TO CONDITIONS HERE. UM, YOU'LL SEE IN THE REPORT THAT WHILE SOME AIRLINES HAVE CUT SOME OF THEIR CAPACITY IN THEIR SEATS, UH, OTHERS ARE FILLING IN THOSE GAPS WITH NEW SERVICE ANNOUNCEMENTS. FOR EXAMPLE, DELTA, AND TO SOME DEGREE, FRONTIER ARE ADDING ROUTES AND, UH, EXPANDING OPTIONS FOR OUR CUSTOMERS. UH, THAT SAID, WHILE OUR REGION REMAINS A ROBUST, UH, BUSINESS AND TOURISM DRAW, UH, THERE ARE STILL FACTORS THAT CAN AFFECT A CARRIER'S, UH, BUSINESS DECISIONS. AND, UH, WE ARE AWARE OF THOSE AND, AND, UH, CONSIDERATE OF THOSE. WITH THAT SAID, WE'RE EXCITED ABOUT SOME OF THE THINGS THAT LIE AHEAD IN 2025. UH, WE DID SCORE A PLETHORA OF NEW SERVICE FOR NEXT YEAR, AND I WANT TO COVER SOME OF THAT NOW. UH, STARTING IN 25, SOUTHWEST WILL HAVE NEW SEASONAL NONSTOP SERVICE TO RENO. THIS IS IN ADDITION TO THEIR CURRENT SEASONAL NONSTOP SERVICE TO BOSTON AND OMAHA, WHICH LAUNCHED, UH, JUST A FEW MONTHS AGO. THEY'LL ALSO HAVE NEW YEAR ROUND, UH, NONSTOP SERVICE TO MILWAUKEE. UH, YOU'LL RECALL IN OCTOBER, DELTA BEGAN NONSTOP SERVICE TO HARLINGEN. UH, BEGINNING NEXT YEAR, THEY'LL BE ADDING NEW, UH, YEAR ROUND NONSTOP SERVICE TO NEW ORLEANS, PANAMA CITY, INDIANAPOLIS, JACKSONVILLE, MEMPHIS, SAN FRANCISCO, AND TAMPA. I THINK IT'S IMPORTANT TO NOTE THAT SOME OF THESE ARE, UH, REPRESENTED AS NEW ROUTES AND DO NOT HAVE OTHER CARRIERS, UH, DOING THOSE ROUTES CURRENTLY. UH, THEN STARTING IN MARCH OF 25, FRONTIER WILL BE ADDING NEW NONSTOP SERVICE TO CHICAGO, O'HARE, ORLANDO, CINCINNATI, AND PHOENIX. UH, WE DON'T KNOW AT PRESENT WHETHER THOSE WILL BE SEASONAL OR YEAR ROUND, SO WE'LL BE SURE TO KEEP YOU UPDATED. UM, FRONTIER DOES ALREADY FLY NONSTOP TO ATLANTA, WHICH THEY, UH, YOU MIGHT RECALL, THEY LAUNCHED BACK IN OCTOBER. AND THEN LASTLY, WESTJET HAS ANNOUNCED THAT THEY'LL BE OFFERING SEASONAL NONSTOP SERVICE TO VANCOUVER, UH, CANADA STARTING IN MAY. AND THAT IS OUR REPORT, AS BEST I CAN DELIVER IT. BUT IF YOU HAVE ANY QUESTIONS, I'LL PASS THOSE ON TO JAMIE. THANKS. NO HARD QUESTIONS FOR MR. ALEXANDER, BUT ANY EASY QUESTIONS FOR MR. ALEXANDER? IF IT'S NOT ON THE SCRIPT, IT'S, IT'S NOT GETTING SAID, UH, MADAM CHAIR, WE CAN'T HEAR YOU. CAN YOU HEAR US? YOU CAN HEAR US, BUT WE CAN'T HEAR YOU. HMM. IS THAT A, UH, SURMOUNTABLE PROBLEM? YEAH. JEREMY, CAN YOU GIVE US A TEST RUN? CAN WE HEAR YOU? YEAH. JEREMY, WE CAN'T HEAR YOU EITHER. LOOKS LIKE WE'VE GOT MAYBE A WHAT ABOUT THIS? THERE YOU GO. IS MINE WORKING? IS THAT WORKING? WE CAN HEAR YOU LOUD AND CLEAR. YES, SIR. ANY TIPS FOR OUR COLLEAGUES, JONATHAN, ON THAT? UH, JEREMY'S MUTED. I SEE JEREMY'S MUTED. YOU MIGHT HAVE TO, CAN YOU HEAR ME NOW? WE SURE CAN. YEP. OKAY. JONATHAN C**N COMING IN WITH THE SAGE ADVICE. THAT'S ALL RIGHT. THANK YOU, COMMISSIONER. YEP. UM, WENDY, UM, MADAM CHAIR, WE, WE CERTAINLY WANT TO HEAR YOUR COMMENTS, UM, HAVE GIVEN ANOTHER MINUTE HERE. UH, MR. HENDRICKS, KOON, DO YOU HAVE ANY QUESTIONS OR COMMENTS FOR MR. ALEXANDER? YES, SINCE YOU'VE ASKED, I, I WAS JUST CURIOUS, YOU KNOW, WITH SEEING DECLINING REVENUES YEAR OVER YEAR AND, AND SOME OF THE FLIGHT ROUTES THAT WE'RE LOSING, UH, EITHER ONE IN, IT LOOKS LIKE WE'VE LOST, WE'RE LOSING SERVICE TO HAWAII DIRECT FROM AUSTIN. [00:10:01] UM, KINDA WHAT DO WE THINK ABOUT THE, THE OUTLOOK? DO WE THINK SOME OF THESE ARE GONNA BE COMING BACK AND IS THIS A TREND THAT WE'RE SEEING AT OTHER SIMILAR SIZED AIRPORTS, OR ARE WE KIND OF UNIQUE? COMMISSIONER, THIS IS JASON. UM, I'LL LOOK TO JAMIE TO MAYBE, UH, SPEAK A LITTLE BIT TO THE FORECAST NEXT MONTH, AND MAYBE RAJIV CAN, UH, DISCUSS A LITTLE BIT ABOUT THE REVENUES. BUT WITH REGARD TO THE HAWAII FLIGHT, THAT WAS CERTAINLY A, A SAD LOSS. UM, FROM WHAT WE HAVE GATHERED AND WHAT WE KNOW, IT SEEMS IT WAS JUST A DECISION, UH, MADE BY THE AIRLINE, UH, WITH THE MERGER WITH ALASKA, UH, HAD NOTHING REALLY TO DO WITH, UH, A US SPECIFICALLY, BUT, UM, WE DON'T KNOW WHAT THE FUTURE HOLDS FOR THAT ROUTE, WHETHER IT WILL COME BACK OR NOT. UM, BUT IT, WE, WE SEE IT AS A SIGNIFICANT LOSS. UNDERSTOOD. YOU KNOW, THIS, THIS MAY BE, THIS IS A QUESTION TO THE GROUP AND SPECIFICALLY TO OUR WORLD CLASS PROFESSIONAL STAFF AS WE ENTER THE YEAR AND CHAIR TODD ASKING YOU ALSO HERE, MAYBE GIVE US A THUMBS UP. IT MIGHT BE INTERESTING TO HEAR, UH, A HIGHER LEVEL, DEEPER DISCUSSION AROUND SERVICE BROADLY IN OUR NEXT MEETING. ACTUALLY, I'M GLAD YOU SAID THAT THAT WAS A FUTURE AGENDA ITEM. AND, UH, JAMIE HAS DISCUSSED THAT WITH OUR CONSULTANTS, AND I THINK IF YOU'LL GIVE US TILL FEBRUARY, SHE'S KIND OF LINED THAT UP TO GIVE SORT OF AN OVERVIEW OF AIR SERVICE AS A PRACTICE AND MAYBE TALK A LITTLE BIT ABOUT THE QUESTIONS THAT YOU AND THE OTHER COMMISSIONERS HAVE. AND I THINK, JONATHAN, IF THIS COMMISSIONER KON, IF THIS MEETS WITH YOUR APPROVAL, MAYBE THAT'S A MACRO DISCUSSION AND ALSO A MICRO SPECIFIC TO A US DISCUSSION, BOTH SIDES OF THAT COIN. YEAH. YEP. YEAH, I, I JUST THINK IT'D BE GREAT TO UNDERSTAND LIKE, WHAT ARE THE ROUTES WE DON'T HAVE THAT WE THINK WE, UH, WHAT ARE, WHAT ARE THE TOP FOUR LIST OF THE ROUTES THAT WE'RE GOING AFTER? YEAH. I WOULD ADD, WHILE WE'RE PUTTING STUFF UP THERE ON THE LIST, I, I, I KNOW IT'S A VERY MUCH A PRIORITY TO OUR BUSINESS COMMUNITY HERE, ASIA, AND, AND SO MAYBE LET'S PUT A, PUT A PUT A REAL SPOTLIGHT ON THAT DISCUSSION AND EFFORTS TOWARD IT. I KNOW THAT THAT'S NOT A, UM, YOU KNOW, SINGLE DIMENSIONAL THING THAT'S A, THAT, THAT TAKES REAL STRATEGY AND EXECUTION, AND I KNOW IT'S IMPORTANT TO A LOT OF US IN THE REGION. AND SO MAYBE LET'S ADD THAT TOO, IN PARTICULAR. UM, I'M, I'M SLOW WALKING THIS BECAUSE I SURE WOULD LOVE TO HAVE CHAIR TODD BACK IF SHE HAS QUESTIONS. UM, ANY OTHER QUESTIONS OR COMMENTS FOR MR. ALEXANDER? COMMISSIONER C**N? UH, CAN I ASK ONE? YEP. I MAYBE JUST 'CAUSE MY MIC'S WORKING, I GET TO ASK MORE QUESTIONS. UM, YEAH, THE OTHER QUESTION IS, IT'D BE GREAT IN FEBRUARY TO UNDERSTAND IF THERE'S AN EFFORT OR ANYTHING THAT COULD, YOU KNOW, TO GET, UH, JSX BACK, YOU KNOW, THOSE FLIGHTS TO DALLAS, UH, FROM AUSTIN. UH, A LOT OF FOLKS I KNOW FOUND 'EM PRETTY CONVENIENT. AND, UH, WE DO BUSINESS WITH FOLKS IN AUSTIN IN, UH, DALLAS. IT'D BE GREAT TO SORT OF GET THAT BACK. WE HEARD THEY WERE EVENTUALLY GONNA BE EXPANDING TO HOUSTON WHEN WE, WHEN WE LOST THEM HERE FROM AUSTIN. Y YEAH, THAT ONE SPECIFICALLY COMMISSIONER, I THINK WAS, UH, MORE CONTRACTUAL RELATED. UH, NOT REALLY A AIR SERVICE RECRUITMENT, BUT WE CAN GET JAMIE TO DIG INTO THAT A LITTLE BIT AND GET YOU A TIGHTER UPDATE. HAPPY TO DO THAT. SOUNDS GOOD. CHAIR TODD. HELLO. THANK YOU. I, IT'S, I, THIS IS REALLY BUGGY, BUT UM, THANK YOU. UH, YOU MAY HAVE ANSWERED THIS ALREADY, BUT AT WHICH OF ANY OF THESE AIRLINES ARE USING THE SOUTH TERMINAL? I THINK IT'S, RIGHT NOW IT'S JUST ALLEGION IN FRONTIER. SO THE, I I, SO WE HEARD THAT FRONTIER IS LAUNCHING SOME NEW ROUTES IN MAY. IS, IS THAT CORRECT? WHEN, WHEN ARE THOSE NEW ROUTES AND THEY'LL BE FROM SOUTH TERMINAL, IS THAT CORRECT? THAT IS, YES. AND YES, I'LL GET YOU THE EXACT DATES ON THE CHART. UH, BUT FRONTIER, THOSE WILL ACTUALLY BE STARTING IN MARCH. MARCH, OKAY. COMING FROM THE SOUTH TERMINAL. YES. VERY GOOD. THANK YOU. THANK YOU, MADAM CHAIR AND MR. ALEXANDER, GREAT JOB AND THANK YOU. YEP. UM, NO ACTION NEEDS TO BE TAKEN. WE CAN JUST MOVE FORWARD. RIGHT. OKAY, GREAT. UH, MS. ESTERBROOK, [4. Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer ] GOOD AFTERNOON COMMISSION. LYNN ESTERBROOK W CHIEF OF DEVELOPMENT, AND I'LL BE GIVING AN UPDATE ON THE JOURNEY WITH A US. UM, WE ARE MOVING, UM, ALONG WITH ALL OF OUR PROJECTS. WE'RE IN A PHASE NOW WHERE WE'VE BEEN ONBOARDING AND DOING KICKOFF MEETINGS WITH LOTS OF DIFFERENT CONSULTANTS. SO WE'VE HIRED RECENTLY. SO THOSE PROJECTS ARE IN THAT SORT OF, UH, BEGINNING STAGE. THE TWO CONSTRUCTION PROJECTS THAT WE HAVE, UM, ACTIVE CRANES [00:15:01] ON ANYWAY, UM, ON THE PROJECTS. THE WEST GATE EXPANSION AND THE WEST INFILL ARE ON TRACK, UM, FOR Q1 26 COMPLETION. AND SPECIFICALLY, I JUST WANTED TO HIGHLIGHT, THE GARAGE PROJECT DID HAVE ITS OUTREACHES, UM, IN THE LAST TWO MONTHS. UM, SO THE WEST GARAGE HAD AN OUTREACH ON NOVEMBER 19TH, BOTH IN PERSON AND VIRTUAL, AND ALSO ON DECEMBER 4TH, BOTH IN-PERSON AND VIRTUAL. UM, AND IN THE NOVEMBER MEETING, OVER 148, UH, PEOPLE REGISTERED AND ATTENDED THE VIRTUAL MEETING, AND OVER 76 PEOPLE ATTENDED THE IN-PERSON MEETING. WE DON'T HAVE THE STATS, THE FINAL STATS YET ON THE DECEMBER 4TH MEETING. UM, AND SO THE PROJECT IS IN THE PROCESS OF LOOKING FOR THEIR PARTNERS AND THEIR SUBS, AND THAT'S AN ACTIVE, UH, RECRUITMENT RIGHT NOW AND THROUGH THE REST OF THIS, UM, MONTH. AND SO THAT PROJECT WILL BE, UM, PREPARING TOWARDS IT 60% DESIGN, AND THAT'S WHY, UH, A CONTRACTOR IS SEEKING THOSE SUB PARTNERSHIPS RIGHT NOW. AND THAT'S MY UPDATE. IF YOU GUYS HAVE ANY OTHER QUESTIONS SPECIFICALLY ABOUT ANY PROJECTS, I'M HAPPY TO TRY TO ANSWER THOSE. ARE THERE QUESTIONS FOR MS. ESTHER BROOK? I, I WILL ADD, UH, IN THE ABSENCE OF QUESTIONS, JUST A A, A COMMENT, THIS HAS BEEN A BUSY YEAR, , UM, CONGRATULATIONS ON A LOT OF HARD WORK. I KNOW A LOT OF, OF, OF THESE PROJECTS ARE, ARE BEING PURSUED IN PARALLEL, AND IT TAKES A LOT OF, UH, TIME ON THE EXECUTION SIDE ON OUR SIDE OF THE, OF THE, YOU KNOW, OF THE TABLE, MUCH LESS ON THE PRIVATE SECTOR LEADERSHIP SIDE OF THE TABLE. SO WE APPRECIATE WHAT YOU'RE DOING AND NO QUESTIONS HERE, SCOTT. NOW I GOT ONE, UH, ONE COMMENT. ANYWAY, UM, I THINK WE NEED TO BE VERY CAREFUL ABOUT THE PEDESTRIAN TRAFFIC IMMEDIATELY IN FRONT OF THE, THE TERMINAL. WE'VE GOT, UM, OUR, OUR, THE AIRPORT STAFF IS BUSY DIRECTING TRAFFIC. THEY DO A GOOD JOB, BUT THEY'RE NOT NECESSARILY THE PROFESSIONAL TRAFFIC GUYS. AND, UH, WHEN WE GET INTO CONSTRUCTION, I THINK IT'S PRETTY, PRETTY OBVIOUS THAT WE REALLY NEED TO MAKE SURE THAT EVERYBODY KNOWS WHAT'S GOING ON WITH THE PEDESTRIAN TRAFFIC COMING FROM THE GARAGE AREA. UH, IT'S NOT, IT'S, IT'S PRETTY DIFFICULT RIGHT NOW. AND I, EVERY TIME I GO, EVERY TIME I GO TO WORK ON FRIDAY, I ALWAYS, UH, MAKE SURE THAT, UH, THE INDIVIDUAL DIRECTING TRAFFIC, UH, I GIVE 'EM A HUG AND SAY, BE SAFE. THEY'RE DOING THE BEST THEY CAN, BUT IT'S GONNA BE EVEN MORE DIFFICULT IN THE FUTURE, INCREASINGLY SO. RIGHT, RIGHT. YEP. ANY OTHER COMMENTS THERE, COMMISSIONER I? ANYTHING ONLINE? GREAT. WE'LL KEEP MOVING. THE NEXT AGENDA ITEM IS A [5. Briefing on BATX Pipeline Project presented by Andy Saenz and Jake Reint on behalf of Flint Hills Resources ] BRIEFING ON THE BATX PIPELINE PROJECT, AND I THINK MR. ALEXANDER'S GONNA TEE THIS UP FOR US. YES. THANK YOU, COMMISSIONERS AGAIN. JASON ALEXANDER, DEPUTY CHIEF OF AIRPORT AFFAIRS. UM, I'LL GO AHEAD AND INVITE, UH, ANDY SIGNS AND JAKE WRIGHT FROM, UH, FLINT HILLS REPRESENTING FLINT HILLS TO THE, UH, MICROPHONES IF THEY'D LIKE. BUT JUST TO KIND OF OPEN THINGS UP, UM, YOU'LL RECALL THE COMMISSIONER WILL RECALL THAT, UH, FLINT HILLS HAS BEEN WORKING, UH, WITH US AND OTHER STAKEHOLDERS ON AN IMPORTANT PIPELINE PROJECT. THE PROJECT SPECIFICALLY IS A PIPELINE, UH, FROM THEIR TERMINAL AND BASTROP TO OUR FUEL FACILITY HERE AT A US, UH, THAT WOULD ESSENTIALLY SUPPLY JET A FUEL FOR THE AIRLINES OPERATING OUTTA THE AIRPORT. UM, THIS IS A MAJOR, UH, PROJECT. IT'S BEEN SEVERAL MONTHS, UH, UP TO THIS POINT, SEVERAL MONTHS OF, UH, DEEP DISCUSSIONS WITH THE AIRPORT STAFF, UH, WHERE WE'VE TALKED A LOT ABOUT TRYING TO HELP DESIGN A, A, A PATH OR, UH, AN ALIGNMENT FOR THIS PIPELINE. UH, THE PIPELINE ITSELF, THEY WILL SPEAK TO IT IN GREATER DETAIL, THAT'S WHY THEY'RE HERE TODAY. BUT THE PIPELINE ITSELF IS A LITTLE OVER 20 MILES IN FULL LENGTH. UH, A LITTLE LESS THAN 10% OF THAT EXIST ON THE AIRPORT PROPERTY, BUT, UM, THAT IS OBVIOUSLY A CRITICAL ENDPOINT FOR THIS PIPELINE. SO WE'VE BEEN HEAVILY INVESTED IN, UH, VISITING WITH THEM. IT'S BEEN SEVERAL MONTHS OF CONSTRUCTIVE CONVERSATION ON THAT, UH, AND I'M HAPPY THAT WE'VE GOTTEN IT TO THIS POINT. UM, THEY'LL HIGHLIGHT THAT ALIGNMENT AND DISCUSS THE DETAILS FOR OUR PURPOSES. JUST, UH, TO REITERATE TODAY'S, [00:20:01] UH, DISCUSSION, IT REALLY IS JUST A BRIEFING. THERE IS NO ACTION. UH, WE FELT LIKE THIS WAS A TIMELY BRIEFING TO HAVE BECAUSE SOMETIME EARLY IN THE NEW YEAR, WE DO EXPECT TO COME BACK TO THE COMMISSION AND THEN, UH, FOLLOWING THAT TO CITY COUNCIL WITH SOME ACTION ITEMS, INCLUDING, UH, POTENTIALLY AUTHORIZING US TO NEGOTIATE AND EXECUTE A LICENSE AGREEMENT, WHICH WOULD SET THE TERMS FOR THEIR ABILITY TO CONSTRUCT AND OPERATE ON AIRPORT PROPERTY. SO THOSE ARE THE THINGS THAT LIE AHEAD, BUT TO KIND OF SET THAT STAGE AND GIVE YOU SOME CONTEXT TO THAT, WE'VE INVITED THEM HERE TODAY TO GIVE YOU ALL THE MORE THOROUGH BRIEFING. AND WITH THAT, I'LL TURN IT OVER TO ANDY SIGNS. THANK YOU, JASON. I APPRECIATE IT. GOOD AFTERNOON, COMMISSIONERS. UH, IT'S GOOD TO SEE YOU ALL. MY NAME IS ANDY SZ. I'M THE PUBLIC AFFAIRS DIRECTOR FOR FLINT HILLS RESOURCES. I'M HERE TODAY WITH SEVERAL OF MY COLLEAGUES TO PROVIDE AN OFFICIAL UPDATE ON THE BASTROP AUSTIN, TEXAS BATX PROJECT. I'VE HAD THE PRIVILEGE TO SPEAK WITH YOU BEFORE IN THE PAST. TODAY WE'RE PLEASED TO SHARE THE COMPLETION OF SIGNIFICANT BENCHMARKS FOR THIS PROJECT. NEXT SLIDE, PLEASE. FLINT HILLS RESOURCES IS A REFINING AND PIPELINE COMPANY BASED IN WICHITA, KANSAS, WITH OPERATIONS BUILT ON MORE THAN SIX DECADES OF EXPERIENCE. WE'VE RELIABLY SUPPLIED AUSTIN'S FUEL FOR THE PAST THREE DECADES, AND CURRENTLY SERVE AS THE PRIMARY SUPPLIER OF JET FUEL TO THE AUSTIN AIRPORT. FLINT HILLS RESOURCES REFINERIES PRODUCE THE FUELS THAT PEOPLE IN AUSTIN AND CENTRAL TEXAS DEPEND ON EVERY DAY. WE OPERATE TWO REFINERIES IN THE CORPUS CHRISTI, TEXAS AREA WITH A COMBINED CRUDE OIL PROCESSING CAPACITY OF 350,000 BARRELS A DAY. WE ALSO OPERATE MORE THAN 4,000 MILES OF PIPELINES TO TRANSPORT CRUDE OIL, REFINED PETROLEUM PRODUCTS, NATURAL GAS LIQUIDS, AND CHEMICALS THAT ARE DELIVERED THROUGH A DISTRIBUTION SYSTEM OF MORE THAN 40 TERMINALS THROUGHOUT THE MIDWEST AND TEXAS. IN ADDITION TO THE AUSTIN AIRPORT, WE ALSO SUPPLIED JET FUEL TO MAJOR AIRPORTS, INCLUDING THE DFW AIRPORT AND THE MINNEAPOLIS ST. PAUL AIRPORT. NEXT SLIDE, PLEASE. MR. SZ, COULD I ASK YOU ABSOLUTELY. IS THE SAME FUEL THAT IS HEADED TO DFW, IS THAT PASSING THROUGH BASTROP? IT IS. YEP. YEP, DEFINITELY. SO IT'S TAKEN A, A LEFT TURN BY TRUCK NOW, AND WITH THIS, IT'LL TAKE A LEFT TURN BY PIPE. YOU, YOU'VE GOT IT EXACTLY CORRECT. YEAH, ABSOLUTELY. YEP. THE OFFICER IN, UH, BERKSHIRE INTERNATIONAL AIRPORT IS STILL THE LARGEST AIRPORT IN THE COUNTRY, RELYING SOLELY ON TRUCKS FOR JET FUEL DELIVERY. CURRENTLY, IT REQUIRES MORE THAN 100 TRUCKS DAILY TO SUPPLY THE APPROXIMATELY 20 MILLION GALLONS OF JET FUEL NEEDED A BIA EVERY MONTH. AS ONE OF THE NATION'S FASTEST GROWING AIRPORTS, A BIA INCREASING PASSENGER VOLUMES WILL DRIVE HIGHER DEMAND FOR THE JET FUEL LEADING TO MORE TRUCKS ON THE ROAD, AND THE GREATER RISK OF OPERATIONAL DISRUPTIONS. IN OCTOBER OF 2023, FLINT HILLS RESOURCES ANNOUNCED PLANS TO CONSTRUCT THE BASTROP AUSTIN, TEXAS BATX PIPELINE, ENSURING AND UNINTERRUPTED AND RELIABLE FUEL SUPPLY. THE PIPELINE WILL BE, WILL, WILL BE PRIVATELY FUNDED, CONSTRUCTED AND OPERATED BY FLINT TILL'S RESOURCES, AND OWNED BY ITS AFFILIATE, BATX PIPELINE LLC. AGAIN, I WANNA MAKE THIS POINT, NO TAXPAYER FUNDS WILL BE USED FOR THIS PROJECT. THIS IS A FLINT HILLS RESOURCES ONLY PROJECT. A 10 INCH DIAMETER PIPELINE WILL TRANSPORT JET FUEL FROM THE FLINT HILLS RESOURCES TERMINAL TERMINAL IN BASTROP TO THE AIRPORT. THE PIPELINE WILL BE MONITORED 24 7 THROUGH FLINT HILLS RESOURCES LINE INSPECTION, I'M SORRY, FLINT HILLS RESOURCES PIPELINE CONTROL CENTER IN WICHITA, KANSAS, AND WILL UNDERGO REGULAR IN-LINE INSPECTIONS TO ENSURE SAFETY AND RELIABILITY. THE PIPELINE WILL ELIMINATE EMISSIONS FROM OVER 100 DAILY FUEL TANKER TRUCKS, REDUCING CONGESTION ON HIGHWAY 71, AND PROVIDING A SAFER DELIVERY METHOD. NEXT SLIDE, PLEASE. MR. SIGNS, JUST QUICKLY, I WANT TO ENCOURAGE ANY OF THE COMMISSIONERS IN PERSON OR ONLINE, CAN'T SEE YOU ONLINE, BUT SPEAK UP IF YOU HAVE QUESTIONS FOR MR. SIGNS. YEP. WE APPRECIATE THIS THOROUGH PRESENTATION. ABSOLUTELY. SORRY TO INTERRUPT. THAT'S OKAY. AND THEN WE'LL, WE'LL, UH, IT LOOKS LIKE CHAIR TODD HAS A QUESTION MR. SIGNS, IF THAT'S OKAY? YEAH, ABSOLUTELY. YEP. I'M NOT THE CHAIR TODAY. UM, MR. ROSE, UH, BUT, UM, I HAD TWO QUESTIONS THAT JUST CAME UP FROM COMMENTS THAT YOU MADE AND, HELLO. THANK YOU FOR BEING HERE. UM, ONE IS THAT YOU MENTIONED THERE'S A 10 INCH PIPELINE, AND I AM CURIOUS TO KNOW IF IT WILL BE DOUBLE WALLED. UM, EXCUSE ME, MADAM CHAIR. UH, COMMISSIONERS. MY NAME IS JAKE GRANT. [00:25:01] I'M VICE PRESIDENT OF PUBLIC AFFAIRS FOR FLINT HILLS RESOURCES. UH, THE PIPELINE, UH, WILL BE A, A STANDARD, UH, PIPELINE THAT IS APPROPRIATE FOR DELIVERING JET FUEL TO, TO THE AIRPORT. SO, UH, THE, UH, SPECIFIC ARCHITECTURE OF THE PIPELINE IS STANDARD. IT'S WHAT WE USE FOR DELIVERING FUEL TO OTHER AIRPORTS AND FOR DELIVERING FUEL, UM, TO MANY REGIONS IN THE COUNTRY. SO, UH, IT IS STATE OF THE ART. IT'S, IT'S MODERN. UM, YOU KNOW, MODERN PIPELINES ARE, ARE, ARE EXCEPTIONALLY SAFE AND WELL DESIGNED. UM, I CAN'T SPEAK TO DOUBLE WALLED. THAT'S NOT A, A, A TERM THAT, UH, I'M PERSONALLY FAMILIAR WITH, BUT WE DO HAVE SOME OF OUR OPERATIONS, UH, LEADERS AVAILABLE TO HELP ANSWER THAT QUESTION. UM, IF, UH, IF YOU WOULD, UH, ALLOW ME TO PHONE A FRIEND ON THAT. SURE, ABSOLUTELY. AND I'M NO, OBVIOUSLY NO TECHNICAL EXPERT IN THIS AREA AS WELL, BUT, UM, FOR THE PURPOSES OF THE PUBLIC, IT'S NICE TO KNOW THAT THERE IS, I UNDERSTAND THAT THE STATE OF THE ART, BUT IS IT DOUBLE WALLED? AND THEN THE, MY SECOND QUESTION, THIS IS JUST FOR EDUCATIONAL PURPOSES FOR ALL OF US. DOES FLINT HILLS' RESOURCES RUN THE TRUCKING OPERATION CURRENTLY, OR IS THAT FROM A CONTRACTOR THROUGH THE FUEL CONSORTIUM? UH, MADAME CHAIR, THAT IS THROUGH A, UH, THIRD PARTY CONTRACTOR. IT IS NOT OPERATED BY FLINT HILLS RESOURCES. UNDERSTOOD. OKAY. THANKS SO MUCH. YES, SIR. OKAY, WE'RE GOOD. SO, 2024 YEAR 2024 HAS BEEN A PRODUCTIVE YEAR FOR US SINCE WE FIRST PRESENTED TO THE COMMISSION LAST NOVEMBER. AND SINCE OUR LAST JUNE UPDATE IN FRONT OF THIS BODY, WE ARE PLEASED TO ANNOUNCE THE PIPELINE'S FINAL ROUTE HAS BEEN DETERMINED. NOW TO ARRIVE AT THIS POINT, WE'VE ACTIVELY SOUGHT INPUT FROM COMMUNITY MEMBERS AND LANDOWNERS. THIS INCLUDED HOSTING TWO WELL-ATTENDED OPEN HOUSES IN DELL VALLEY AND BASTROP, AND ALSO FOLLOWED UP BY ANOTHER SUCCESSFUL MEETING AT THE AIRPORT, UH, HILTON. AS A MATTER OF FACT, IN NOVEMBER, WE HAVE INITIATED PERMITTING CONVERSATIONS NOW WITH TEXDOT CITY OF AUSTIN, TRAVIS, AND BASTROP COUNTIES, TEXAS HISTORICAL COMMISSION, THE TEXAS RAILROAD COMMISSION, AND OTHER RELEVANT AGENCIES. CLOSE COLLABORATION WITH AIRPORT STAFF AND LEADERSHIP HAS ALSO BEEN ESSENTIAL. OUR TEAM CONTINUES TO MEET REGULARLY TO OPTIMIZE ROUTING, ENHANCE DESIGN, AND ALIGN WITH THE AIRPORT'S DEVELOPMENT INITIATIVES. WE'VE ALSO KEPT STAKEHOLDERS, INCLUDING THE CITY OF AUSTIN OFFICIALS, ELECTED OFFICIALS AND KEY COMMUNITY GROUPS WELL-INFORMED AND MAINTAIN AN OPEN ACCESSIBLE LINE OF COMMUNICATIONS WITH THEM. WE'VE PROVIDED REGULAR BRIEFINGS TO KEY COMMUNITY GROUPS, INCLUDING POER, SNAR, SOUTHEAST AUSTIN COMBINED NEIGHBORHOOD ASSOCIATION, THE DELL VALLEY COMMUNITY COALITION, AND THE TRAVIS COUNTY PARKS FOUNDATION. NEXT SLIDE, PLEASE. NOW, THE FINALIZED ROUTE CLOSELY FOLLOWS HIGHWAY 71 CORRIDOR AS INITIALLY PRESENTED CONNECTING OUR TERMINAL IN BASTROP DIRECTLY TO THE AIRPORT, THE MAJORITY OF THE 20 MILE ROUTE LIES WITHIN TXDOT RIGHT OF WAY, MINIMIZING DISRUPTION TO PRIVATE PROPERTY. OUR RIGHT OF WAY TEAM HAS WORKED HARD TO ENSURE THIS WAS THE CIRCUMSTANCE, AND I WANNA BRING YOUR ATTENTION. IT'S HARD TO SEE, BUT THE SECOND POINT ON THAT SLIDE TALKS ABOUT THAT 81% OF THE PIPELINE SITS IN TDOT RIGHT OF WAY. THIS WOULD NOT HAVE BEEN POSSIBLE WITHOUT COLLABORATION AND LOTS OF COOPERATION FROM TXDOT. WE MET WITH THEM EARLY, WE MET WITH THEM. OFTEN, THEY UNDERSTOOD THE VALUE OF THE PROJECT, AND THAT'S WHAT HAS GOTTEN US HERE TODAY. APPROXIMATELY 12% OF THE ROUTE IS ON AIRPORT PROPERTY, WHERE WE'VE WORKED HAND IN HAND WITH THE AIRPORT STAFF TO TROUBLESHOOT AND ENSURE ALIGNMENT AND OPTIMIZATION FOR THE FUTURE. NEXT SLIDE, PLEASE. FOCUSING ON THE AIRPORT, THE PIPELINE WILL ENTER NEAR SPIRIT OF TEXAS, DRIVE CLOSE TO THE PARK AND ZOOM FACILITY, SPANNING 2.5 MILES ON THE ACTUAL AIRPORT PROPERTY. WE'VE WORKED CLOSELY WITH ALL FUELS CONSORTIUM AND ITS MEMBER AIRLINES TO UNDERSTAND THE NEED FOR THE PROJECT AND THE OPPORTUNITY TO SUPPLY THE AIRPORT MORE RELIABLY AND EFFICIENTLY. NEXT SLIDE, PLEASE. LOOKING AHEAD, LAND SURVEYING IS COMPLETE. THE ROUTE HAS BEEN FINALIZED, AND WE'VE INITIATED ONGOING PERMITTING CONVERSATIONS AND PROCESSES WITH TRAVIS COUNTY, BASTROP COUNTY, THE CITY OF AUSTIN, AND OTHER RELEVANT BODIES LIKE THE TEXAS RAILROAD COMMISSION AND THE FAA AGREEMENTS ARE BEING DEVELOPED BETWEEN FLINT HILLS AND RELEVANT PARTIES FOR APPROVALS, INCLUDING A LICENSE AGREEMENT WITH THE AIRPORT. WE ARE FULLY COMMITTED TO MEETING ALL DBE PARTICIPATION REQUIREMENTS TO [00:30:01] MEET THE CITY'S M-B-E-W-B-E GOALS. WE INTEND TO HOLD A VENDOR OPEN HOUSE IN THE FIRST QUARTER OF 2025. ONCE PERMITTING AND RELATED APPROVALS HAVE ADVANCED, WE EXPECT CONSTRUCTION TO INITIATE TOWARDS THE END OF NEXT YEAR. TIMELINE FOR THE COMPLETION OF THE PROJECT IS APPAREL IS APPROXIMATELY SIX MONTHS. ONE MORE SLIDE, PLEASE. WE, AGAIN, THANK YOU FOR YOUR TIME AND THE QUESTIONS THIS AFTERNOON. WE WANT TO CONTINUE TO BE A RESOURCE FOR THIS, UH, COMMISSION. WE HAVE TEAM MEMBERS FROM COMMUNITY ENGAGEMENT PROJECT MANAGEMENT RIGHT OF WAY AND ENVIRONMENTAL THAT ARE PRESENT HERE TODAY TO HELP US ANSWER ANY OF YOUR QUESTIONS. SO, MR. CHAIRMAN, THAT'S OUR PRESENTATION. THANK YOU, MR. S THAT WAS GREAT. WE KNOW YOU'VE BEEN HARD AT WORK. WE APPRECIATE THE GOAL OF FINDING A SAFER AND MORE ENVIRONMENTALLY EFFICIENT, EFFECTIVE, UH, MEANS OF DELIVERY, RIGHT? THIS IS IMPORTANT STUFF. ANY, ANYBODY ONLINE HAVE ANY, UM, QUESTIONS OR COMMENTS FOR OUR, FOR OUR GUESTS? MR. COMMISSIONER FROM REFINERY TO BASTROP YOUR PIPELINE THE WHOLE WAY? YES. CHAIRMAN, ANY MORE EASY QUESTIONS? , UH, UH, COMMISSIONER HENDRICKS AND THEN COMM. MR. TODD. GO AHEAD, JEREMY. YES. EXCUSE MY CALL TODAY. UM, I, UH, DON'T HAVE A QUESTION. I JUST WANTED TO CUT, AMEND THE FOLKS, UH, WITH FLINT HILLS. UM, I SENT SOME OF OUR FOLKS FROM LAUNA PIPELINE DIVISION TO THE HILTON OPEN HOUSE, AND THEY HAD A GREAT CONVERSATION. WE'RE REALLY, UM, IMPRESSED BY HOW FORTHCOMING YOU GUYS WERE AND HOW OPEN AND HONEST ABOUT THE PROJECT. SO THANK YOU FOR ALL THAT YOU'VE DONE. THANK YOU, COMMISSIONER. YEP. CHAIR, TODD. THANK YOU. AND GOOD TO HEAR THAT, JEREMY. UM, THANK YOU AGAIN FOR THE PRESENTATION AND FOR YOUR OUTREACH TO THE COMMUNITY. I WOULD BE CURIOUS TO KNOW WHAT THE EASEMENT LOOKS LIKE. WE HEARD IN A CONVERSATION EARLIER THAT THE, THE PIPE ITSELF IS BURIED QUITE DEEP, AND, UM, BUT WHAT THE SORT OF DIMENSION IS ALONG THE RIGHT OF WAY, WHAT, WHAT IS REQUIRED FOR A 10 INCH PIPE? MADAM CHAIR, COMMISSIONERS, THANK YOU FOR, FOR YOUR QUESTION. UM, YOU KNOW, FIRST, AS ANDY'S NOTED, AND OVERALL, THIS IS A 20 MILE, UM, PIPELINE PROJECT. UH, THE VAST MAJORITY OF IT IS IN TXDOT RIGHT OF WAY. SO ALONG 71. UM, HONESTLY, IT'S AMONG THE LEAST DISRUPTIVE PIPELINE PROJECTS WE'VE EVER BEEN AFFILIATED WITH IN, IN TERMS OF POTENTIAL IMPACT TO PRIVATE PROPERTY, JUST BECAUSE WE'RE ABLE TO USE THAT TXDOT RIGHT AWAY. SO THAT, THAT IS, IS VERY, VERY SIGNIFICANT. UH, WE ARE, UH, MUCH OF THE PROPERTY, THE REMAINING PROPERTY THAT WON'T BE OCCUPIED BY THE PIPELINE IS FOR, ARE TEMPORARY EASEMENTS. SO THAT'S JUST DURING THE CONSTRUCTION PROCESS ITSELF. UH, SO IT'S A FAIRLY NARROW CORRIDOR, UH, ALL THE WAY FROM, FROM BASTROP, UH, TO, UH, TO THE AIRPORT. OBVIOUSLY. UH, NAVIGATING THE AIRPORT PROPERTY ITSELF WAS A LITTLE BIT MORE COMPLEX AND, UH, WITH GREAT CREDIT TO, UH, TO THE AIRPORT. UH, WE, WE FOUND A ROUTE THERE THAT, UH, AGAIN, IS MINIMALLY DISRUPTIVE. UM, I DON'T HAVE THE EXACT DIMENSIONS. IT DOES VARY A LITTLE BIT, UM, FROM, FROM THE ORIGIN AT BASTROP, UH, ALL THE WAY TO THE AIRPORT. UM, BUT, UH, WE, UH, DO, UH, MAINTAIN THAT EASEMENT, UM, GOING FORWARD. UH, AGAIN, MINIMIZING THE OVERALL USE OF THE PROPERTY. I THINK, UM, CHAIR, IF I COULD SAY THIS ON YOUR BEHALF, I THINK PART OF HER QUESTION WAS RELATED TO DEPTH AS MUCH AS WIDTH, BUT THANK, THANK YOU FOR THAT, UH, CLARIFICATION. COMMISSIONER. UH, THE, THE DEPTH, THE, THE STANDARD DEPTH IN, IN, IN TEXAS, UH, FOR PIPELINE PROJECTS, I BELIEVE IS 36 INCHES. THIS WILL BE 48, SO A LITTLE, LITTLE BIT DEEPER. WE DO HAVE, UH, SOME CROSSINGS THAT'LL BE, UH, DEEPER THAN THAT. UH, BUT FOR THE MOST PART, IT'LL BE AT THAT 48 INCH DEPTH. OKAY. AND THEN FROM CENTER LINE OF THE PIPE ON EITHER SIDE, WHAT IS THAT? WHAT IS THAT STANDARD DIMENSION? IT WILL VARY A LITTLE BIT. UM, I AM GONNA PHONE A FRIEND IF YOU'LL INDULGE ME ON, ON THAT ONE. YEAH, I MEAN, THESE ARE, AS I SAID, I'M NO AREA SUBJECT AREA EXPERT ON THIS, BUT I HAVE A LITTLE BIT OF EXPERIENCE WITH PIPELINES AND, UM, AT LEAST ALL THE DIGGING THAT GOES ON IN AUSTIN, TEXAS. AND WE, I GUESS, WOULD ALSO BE CONCERNED ABOUT THE COMPACTION, WHAT, WHAT STRATEGIES YOU'RE USING, BECAUSE THE SOIL TYPE, I PRESUME, CHANGES ALONG THE ROUTE. AND I KNOW THAT YOU HAVE DONE THIS, I 4,000 MILES IS SIGNIFICANT, BUT, UM, WE ARE AN AREA PRONE TO UNUSUAL, UH, EVENTS AND WE'RE [00:35:01] TRYING TO BUILD RESILIENCE AND, UH, PARTICULARLY, UH, IN, IN COORDINATION WITH THE AIRPORTS DRAINAGE, ET CETERA. UM, I JUST WOULD LIKE TO BRING UP, I, I'M INTERESTED TO KNOW WHAT SORT OF COMPACTION, HOW THAT'S A CON. THAT, THAT YES, WE WILL DO THAT. AND, UM, IT WILL ALSO BE MINIMALLY, UH, AFFECT THE FLYING PUBLIC AND THE CARGO FACILITY. MADAM CHAIR COMMISSIONERS, UH, WE, WE ANTICIPATE NO SIGNIFICANT DISRUPTION AS A RESULT OF THIS PROJECT, UH, WITH RESPECT TO AIRPORT TRAFFIC, UH, AND ALSO IMPORTANTLY, TRAFFIC ON 71, WHICH I KNOW IS A SENSITIVE TOPIC. UH, I DID GET AN ANSWER TO YOUR QUESTION. UH, IN TERMS OF, UH, THE DISTANCE FROM CENTER, UH, FOR THE PIPELINE CORRIDOR, AND IT'S, UH, 20, 25 FEET. AGAIN, THERE'S ALWAYS GONNA BE SOME VARIABILITY THERE, BUT 25 FEET IS THAT, THAT CORRIDOR. AND, AND THEN IN TERMS OF, UM, THE GEOLOGICAL ASPECTS OF, OF YOUR QUESTION, UH, WE'VE COMPLETED EXTENSIVE SURVEYING OF, OF THE AREA OF, OF THE GEOLOGY. UH, WE UNDERSTAND IT WELL. UH, AS, AS YOU KNOW, WE'VE, WE'VE, UH, BUILT A LOT OF PIPELINE. WE'VE MAINTAINED A LOT OF PIPELINE ACROSS THE COUNTRY, UH, MOST OF WHICH IS IN TEXAS. SO WE ARE FAMILIAR WITH THE GEOLOGY AND, UH, WE'LL, WE'LL DO EVERYTHING IN ACCORDANCE WITH, UH, THE HIGHEST STANDARDS. GREAT. WE APPRECIATE, OH, YES, SIR. I, I, I'VE GOT A QUESTION ABOUT, COULD YOU TELL ME HOW THE TEXAS GUARD HANDLES THEIR FUEL WITH RE WITH RESPECT TO THE PIPELINE? UH, UH, COMMISSIONER YOU'RE REFERRING TO THE TEXAS NATIONAL GUARD, CORRECT? FOR OKAY. FOR, FOR THEIR, UH, USE. UM, I, I CAN'T SPEAK FOR SURE TO WHETHER WE HAVE A DIRECT CONTRACT WITH, WITH THE GUARD, UH, OR WHO SUPPLIES THEIR, THEIR JET FUEL. UM, THERE'S A DECENT CHANCE IT'S US. I, I JUST CAN'T SAY THAT FOR SURE. UH, WE, WE OBVIOUSLY DO SUPPLY, UM, THE VAST MAJORITY OF THE JET FUEL, UH, IN CENTRAL TEXAS AND, AND AUSTIN SPECIFICALLY, UH, I JUST DON'T KNOW IF WE HAVE A DIRECT CON, UH, CONTRACT WITH THE GUARD OR NOT, OR IF THEY GET THEIR FUEL FROM OTHER PROVIDERS. THANK YOU. I DON'T THINK THAT'S A MILITARY SECRET, I JUST DON'T KNOW. GREAT. UM, WE UNDERSTAND WE'RE GONNA HAVE THE OPPORTUNITY TO CONTINUE THIS DISCUSSION IN THE COMING MONTHS, AND WE LOOK FORWARD TO THAT. AND WE APPRECIATE YOUR HARD WORK, UH, AND CERTAINLY AGREE WITH THE GOOD GOAL THAT YOU'RE AFTER HERE. SO THANK YOU. THANK YOU. HAPPY HOLIDAYS TO Y'ALL. YOU AS WELL. WE'RE GONNA MOVE PAST [Items 6 - 8] THE STAFF BRIEFING PORTION OF THIS, OF THE AGENDA INTO THE DISCUSSION ITEMS. UM, MR. ALEXANDER, YOU WANNA TAKE THIS SECTION FROM, FROM HERE? I'M GONNA PITCH IT TO MY BOSS. SHE'S GOOD AT DOING THOSE. GREAT. YOU KNOW, HE LIKES TO TAKE OVER, SO HE GIVES ME A, A NUGGET EVERY NOW AND THEN. SO WE HAVE THREE DISCUSSION ITEMS, AND THEY ALL RELATE TO THE PREVIOUS, UH, COUNCIL ACTION ITEMS ON NOVEMBER 24TH OF THIS YEAR. THE FIR, UH, ITEM NUMBER SIX WAS THE CONTRACT ITEM RELATED TO SIEMENS LOGISTICS. ITEM NUMBER SEVEN WAS THE COUNCIL ACTION RELATED TO EVERBRIDGE INC. AND, UH, ITEM NUMBER EIGHT WAS EC AMERICA, INC. ALL CONTRACTS WERE APPROVED ON CONSENT BY THE CITY COUNCIL AT THAT MEETING. I'M PLEASED TO ANSWER ANY QUESTIONS OR PROVIDE, UH, INFORMATION IF YOU NEED ANY. OH, I APOLOGIZE. I STAND CORRECTED. THANK YOU, MR. MR. ALEXANDER. UM, THAT'S WHY HE DOESN'T LET ME DO THIS VERY OFTEN. UM, ITEM NUMBER SEVEN WAS WITHDRAWN AND WILL BE BROUGHT BACK TO, UH, THE COUNCIL AT A FUTURE DATE AND TO THIS COMMISSION AS WELL. SO MY CORRECTION TO THE, UH, TO WHAT I JUST SAID, THANK YOU, PLEASE TO ANSWER ANY QUESTIONS. SURE. I'M JUST LOOKING AT SEVEN. EVERBRIDGE IS WITHDRAWN. IS THAT WHAT YOU YES, SIR. YEP. OKAY. YEAH, AND WE EXPECT TO BRING THAT BACK, UH, TO THE COMMISSION ON JANUARY 8TH, AND IT WILL GO TO COUNCIL, I BELIEVE, JANUARY 30TH. OKAY. NOW, I WILL USE THAT AS A CHANCE ALSO, JUST TO MENTION THAT IN JANUARY WE WILL PROBABLY HAVE SEVERAL RCAS FOR THE COMMISSION. SO, UH, JUST KIND OF TEEING THAT UP FOR AWARENESS RIGHT NOW. GREAT. UNLESS ANYBODY ONLINE HAS ANY, UH, REASON TO PAUSE, I THINK WE ARE DONE WITH THE DISCUSSION ITEM PORTION AND WE'RE ON TO [FUTURE AGENDA ITEMS] FUTURE AGENDA ITEMS. I KNOW THAT WE COVERED THE IDEA OF OUR SERVICE BEING A PRIORITY ITEM IN FEBRUARY. IT SOUNDS LIKE WE'RE GONNA HAVE SOME ACTION ITEMS IN JANUARY. UM, ANYBODY ONLINE, CHAIR OR OTHERWISE HAVE ANY COMMENTS OR SUGGESTIONS FOR, UM, FUTURE AGENDA ITEMS? I, I HAVE A FOLLOW UP ONE THAT DIDN'T MAKE IT TO THE FUTURE AGENDA ITEMS, WAS IT, IT WAS A REQUEST FOR STAFF REGARDING THE PERCENTAGE OF PASSENGERS USING THE LOUNGES. I'D LIKE [00:40:01] TO KIND OF MEMORIALIZE THAT IN A FUTURE AGENDA ITEM WHEN WE COME BACK, BUT THAT, THAT LITTLE NUGGET OF INFORMATION WOULD BE HELPFUL. UM, SO I GUESS I'M MAKING A MOTION FOR A BRIEFING OR JUST SOME FACTS ABOUT THE, UM, PASSENGER LOUNGE USAGE. UM, THAT'S ONE THING, SO I MAY NEED TO, I'LL SECOND THAT AND, AND COMMISSIONER, I, I DID, UH, I DID NOT FORGET TO BRING BACK A LITTLE BIT OF INFORMATION FOLLOWING UP THAT CONVERSATION FROM THE LAST MEETING. SO I'LL SHARE SOME OF THAT NOW IF THAT'S HELPFUL. AND THEN IF THERE'S STILL NEED FOR A FUTURE AGENDA ITEM, WE CAN CERTAINLY WORK WITH, UH, JOHN GALLO TO, TO TALK ABOUT THAT. BUT THE COMMISSION MIGHT RECALL, THERE WAS A QUESTION, I THINK IT WAS AT THE LAST MEETING, UH, FOLLOWING, UH, JOHN GALLO'S PRESENTATION ON THE NEW LOUNGE PROGRAM. YOU KNOW, WHAT WAS THE UTILIZATION RATE? AND, UH, WORKING WITH JOHN, UH, WE'VE DETERMINED IT'S ROUGHLY ABOUT 15% OF DAILY EMPLOYMENTS, UH, UTILIZE OUR CURRENT THREE AIRLINE LOUNGES. UM, WHAT'S NOTABLE ABOUT THAT IS THAT THE AIRLINES HAVE CONTINUED TO, UH, INCREASE THE RESTRICTIONS ON HOW TO ACCESS THOSE AND WHO CAN ACCESS THOSE. UM, SO THAT DOES SPEAK A LITTLE BIT TO THE UTILIZATION. ANECDOTALLY, SOUTHWEST, UH, THEY REPRESENT ABOUT 40% OF OUR MARKET, AND CURRENTLY THERE ARE NO OFFERINGS FOR, UH, LOUNGES FOR SOUTHWEST UH, PASSENGERS. AND SO WE THINK THAT BY EXPANDING SOME OF THOSE OPTIONS LIKE A DAY PASS OR A COMMON USE LOUNGE, UM, THAT WILL PERFORM WELL LIKELY AS WELL AS SOME OF THE MORE PREMIER LOUNGES, UH, AND EXCLUSIVE ONES. AND THEN WE CERTAINLY THINK THAT THAT WILL CONTRIBUTE TO GREATER UTILIZATION. I THINK I SAW JOHN HERE IF THERE'S ANY QUESTIONS, BUT, UH, I DON'T WANNA PUT HIM ON THE SPOT. SO THOSE ARE THE NOTES I'VE GOT. IF YOU WANT TO COME BACK AND HAVE US SPEAK MORE TO THAT, WE CAN. I'LL ALSO JUST MAKE ONE OTHER REMINDER THAT WE WILL COME BACK TO THE COMMISSION LATER IN THE YEAR ANYWAYS WITH AN RCA TO, OR I'M SORRY, WITH A, UH, I GUESS WE'LL COME BACK WITH AN RCA FOLLOWING AN RFP PROCESS FOR THE LOUNGE PROGRAM. AND WE'LL BE POSITIONED AT THAT TIME TO GIVE YOU MUCH GREATER DETAIL ON THAT AND WE'LL USE THIS TIME TO, TO GET DEEPER INTO THOSE NUMBERS IF THAT'S HELPFUL. THANK, THANK YOU. JASON. I, I WITHDRAW MY, UM, MY REQUEST FOR THAT FUTURE AGENDA ITEM. IS THAT OKAY? JEREMY? OKAY. AND I HAD ONE OTHER, WHILE I, WHILE I HAVE THE MIC, UM, I, I DON'T KNOW HOW TO ASK THIS, BUT BASED ON THE PRESENTATIONS WE HEARD FROM RAJEEV THOMAS TODAY, THERE SEEMS TO BE AN INCREASE IN CARGO, UH, BUSINESS AND A DECREASE IN, IN PLACEMENTS YET WE HAVE HAD A, A, A LOT OF NEAR MISSES RECENTLY INVOLVING ALL SORTS OF AIRCRAFT. AND I AM, I WOULD REQUEST A BRIEFING TO SEE IF THERE'S ANY CORRELATION IN ADDITION TO THE UNDERSTAFFING OF THE AIR TRAFFIC CONTROL TOWER, WHETHER THERE ARE OTHER FACTORS THAT WOULD BE RESPONSIBLE FOR THAT OR WHETHER, UM, IT IS SIMPLY AN UNDERSTAFFING ISSUE AND THAT THERE'S GREAT CAPACITY FOR ALL SORTS OF CRAFT. I DO KNOW, AND I'M JUST GOING TO, BY WAY OF INFORMATION THAT THE GOVERNOR OF NEW JERSEY IS SUPER UPSET NOW ABOUT DRONES, THAT DRONES ARE INTERFERING IN THE AIRSPACE. AND, YOU KNOW, I DON'T KNOW IF SOME OF THESE ARE, IF, IF DRONES ARE SOMEHOW RESPONSIBLE FOR THESE AIRCRAFT NEAR MISSES, BUT, UM, I GUESS I'M ASKING FOR, UH, FUTURE AGENDA ITEM REGARDING ANY RESEARCH ABOUT A CORRELATION BETWEEN THE PER, YOU KNOW, THE SORT OF RATIO OF TRAFFIC OF COMMERCIAL FLIGHTS WHICH ARE SCHEDULED AND THE AIRPORT IS AWARE OF IT, THE FAA IS AWARE OF IT VERSUS, UM, CARGO FLIGHTS VERSUS, UM, FIXED BASE OPERATORS AND PRIVATE AVIATION IN ADDITION TO WHATEVER ELSE IS IN THE AIRSPACE RIGHT NOW. SO, UM, I, DOES THAT MAKE SENSE? COMMISSIONER, UH, THIS IS JASON. I MIGHT REACH OUT TO YOU TO BREAK THAT DOWN INTO ITS FINER PARTS TO MAKE SURE THAT WE, UH, EXPLORE EXACTLY WHAT YOU'RE ASKING FOR. I THINK I GENERALLY UNDERSTAND IT, BUT I MAY FOLLOW UP WITH YOU JUST TO GET MORE SPECIFIC QUESTIONS. BUT I THINK ONE POINT THAT'S WORTH NOTING IS SOME OF THE, UM, INCIDENTS, THE MID-AIR INCIDENTS, UH, AND THINGS THAT HAVE BEEN HIGHLIGHTED IN RECENT MEDIA COVERAGE, UH, DUE TO THE STAFFING ISSUE. ONE OF THE CHALLENGES AS FAR AS WE CAN TELL, THOSE ARE STILL UNDER INVESTIGATION. SO I DON'T KNOW HOW TO ESTABLISH A, A THOUGHTFUL CORRELATION WITHOUT KNOWING WHAT REALLY CONTRIBUTED TO THE INCIDENT. ALL WE KNOW RIGHT NOW IS, AND WHAT WE UNDERSTAND TO BE THE CASE, IS THAT IT IS ATTRIBUTED LARGELY TO A STAFFING ISSUE IN THE AIR TRAFFIC CONTROL TOWER. UM, BUT WHETHER THERE WAS AN ELEMENT [00:45:01] OF, OR NOT AN ELEMENT OF PILOT DISCRETION, PILOT ERROR, ANY OTHER NUMBER OF FACTORS, THOSE THINGS ARE STILL BEING REVIEWED. SO WE'RE NOT INFORMED ENOUGH RIGHT NOW TO KNOW HOW TO ESTABLISH A CORRELATION BETWEEN SIMPLY AIR TRAFFIC AND TOWER STAFFING. I THINK THERE'S MORE VARIABLES TO THAT CONVERSATION THAT WE JUST DON'T HAVE ACCESS TO. UM, THAT'S WHAT I, BUT THANK YOU THAT WHAT I'M ASKING THOUGH IS WHETHER THE BUSINESS THAT THE AIRPORT IS DOING, THE NUMBER OF FLIGHTS COMING IN AND OUT, WHETHER THAT'S A STATIC NUMBER OR WHETHER THAT HAS RECENTLY CHANGED AND SOMEHOW CORRELATES IN, IN AS MUCH AS WE'RE INCREASING THE CARGO BUSINESS. SO PRESUMABLY THERE ARE MORE CARGO PLANES. YOU'RE, YOU'RE TALKING ABOUT THE OPERATIONS AND TRAFFIC OPERAT, CORRECT? YEAH, WE CAN CORRECT. LET US SEE IF WE CAN DO THAT, DO THAT FOR YOU. AND ALSO THE NUMBER OF, UH, PRIVATE, YOU KNOW, WE, I KNOW THAT THERE'S A RESERVATION SYSTEM DURING VERY BUSY TIMES OF YEAR FOR THE FIXED BASED OPERATORS, BUT THERE'S A BIG DEMAND RIGHT NOW FOR LANDING, UH, HERE AND WHETHER THAT IS ALSO SOME NUMBER, BUT WE JUST HAVEN'T SEEN THOSE NUMBERS. SO I'M, I'M JUST CURIOUS TO, TO DRILL A LITTLE DEEPER ABOUT THAT. AND OF COURSE, ALSO ARGUING FOR GREATER STAFFING THAT MEETS THE NEED FOR THE, THE MINIMUM NEED OF THE AIR TRAFFIC OF, FOR THE TOWER. SO THAT'S MY REQUEST FOR A FUTURE AGENDA ITEM. OKAY. I THINK THAT MAKES SENSE. THANK YOU MADAM CHAIR. THANK YOU, JASON. I, I THINK, UM, A COMMENT THAT I WOULD MAKE ON THAT IS, AS I'VE LEARNED A LITTLE BIT ABOUT A US OVER THESE PAST TWO YEARS, THERE'S A REMARKABLE NUMBER OF INPUTS TO THE CUSTOMER PASSENGER SAFETY AND QUALITY OF EXPERIENCE THAT ARE NOT IN OUR CONTROL HERE, AUSTIN. SO IT'S INTERESTING RECOGNIZING THAT WE'VE ALL VERY MUCH CARE ABOUT SAFETY. UM, AND CHAIR TODD, I KNOW YOU'VE BEEN ON THIS TOPIC VERY RIGHTLY SO, UM, FOR YEARS AND, AND I APPRECIATE IT. WE ALL APPRECIATE IT. UM, COMMEND, UM, CONGRESSMAN DOGGETT FOR HIS EFFORTS AND ADVOCACY AT, I KNOW MADE SOME PUBLIC STATEMENTS AROUND THAT FAA DIRECTED TWO DAYS, THREE DAYS AGO, I THINK. UH, SO IT WILL BE INTERESTING. I THINK I'M GONNA TRY TO STATE BACK, JUST SO I UNDERSTAND WHAT YOU WERE SAYING, CHAIR, TODD, UM, WHAT WE'RE ASKING FOR, IS THERE A CORRELATION BETWEEN THE NUMBER OF, NOT IN PLAIN PASSENGERS BUT IN AND OUTBOUND AIRCRAFT TO INCLUDE THIS CARGO, INCREASED VOLUME AND PRIVATE AVIATION? THAT'S WHAT YOU'RE LOOKING, THAT'S WHAT YOU'RE AFTER THERE, CHAIR. GREAT. GOOD. YES, THAT MAKES SENSE. UH, ANY OTHER COMMENTS ONLINE FOR, UH, FUTURE AGENDA ITEMS OR YOUR, I'M GONNA NEED A SECOND THOUGH. I'M GONNA NEED A SECOND IF ANYONE, COMMISSIONER HENDRICKS SECONDS. GREAT. THAT, THAT IS AGENDA BOUND. UM, WE HAVE THE NEXT REGULAR [NEXT REGULAR MEETING ] MEETING IS JANUARY 8TH. I WILL SAY. I HOPE EVERYBODY HAS A GREAT AND HAPPY HOLIDAYS WITH YOUR FAMILY AND THOSE IN YOUR ORBIT PERSONALLY. AND WE APPRECIATE THOSE OF US WHO ARE JUST VOLUNTEERS. WE APPRECIATE THOSE WHO WORK HARD EVERY DAY MAKING THIS AIRPORT A WORLD CLASS AIRPORT. AND IF THERE'S NOT ANYTHING ELSE, WE'RE GONNA ADJOURN THIS MEETING. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.