Jan 14, 2026 Airport Advisory Commission

[00:00:05]

WELCOME TO OUR,

[CALL TO ORDER]

WE'RE GONNA CALL THIS TO ORDER ON, UH, UH, JANUARY 14TH, 2026 AT, UH, 3 0 1.

THANK YOU.

I'M GONNA, UH, READ OFF THE NAMES OF, UH, THE COMMISSIONERS, UH, IN ATTENDANCE.

UH, MY NAME'S DOYLE VALDEZ, UH, COMMISSIONER, ER, UH, COMMISSIONER FANG, COMMISSIONER HENDRICKS, COMMISSIONER TRIMBLE.

AND, UH, COMMISSIONER TRITA IS, UH, UH, VIRTUAL THIS AFTERNOON.

IF ANYONE ELSE COMES ON, WE'LL UH, ADD THEM SHORTLY.

ALRIGHT.

OUR FIRST

[PUBLIC COMMUNICATION: GENERAL]

WE HAVE ONE SPEAKER, UH, SIGNED UP, MIKE LEVY, IF YOU WOULD JOIN US.

UH, THE FIRST FIVE REGISTERED SPEAKERS WILL EACH BE ALLOWED THREE MINUTE ALLOTMENT.

TO ADDRESS THE AIRPORT ADVISORY COMMISSION ON AN ITEM THAT IS NOT POSTED ON THE AGENDA, PLEASE REFER TO THE REGISTRATION INSTRUCTIONS ABOUT WELCOME.

YOU TURN YOUR PLEASE.

MIKE, CAN YOU TURN YOUR ON? MY NAME'S MIKE LEVY.

I STARTED TEXAS MONTHLY IN 1973.

WE SPENT A LOT OF TIME IN AIRPORTS, NOT AT JUST MUELLER, NOT JUST STROM ALL OVER THE COUNTRY.

WE HAD SALES OFFICES IN DALLAS, HOUSTON, MIAMI, ATLANTA, BOSTON, NEW YORK, SAN FRANCISCO, LOS ANGELES, HAWAII, AND EUROPE.

UM, A LOT OF THE AIRPORTS AND, UH, HERB KELLEHER STARTED SOUTHWEST AIRLINES IN 1971.

WE STARTED IN 73.

WE WERE GREAT FRIENDS.

HERB'S COMPLAINT UNTIL HE RETIRED WAS, UH, HOBBY AND, UH, LEFT FIELD BELIEVE THEY HAVE TWO CUSTOMERS, AIRLINES AND PASSENGERS.

UH, AND THEY'RE EQUALLY IMPORTANT.

AUSTIN HAS ONE CUSTOMER, AIRLINES, THE PASSENGERS ARE NOT SEEN AS CUSTOMERS.

YOU SEE IT IN TWO PLACES THAT I WANNA SPEAK TO TODAY THAT ARE, UH, REAL IMPORTANT.

I THINK YOU'VE READ ABOUT THE ELEVATORS.

I'VE GIVEN YOU ALL A TREATISE ON ELEVATORS.

ALL ELEVATOR SYSTEMS ARE NOT CREATED EQUAL.

UH, I THINK THAT, UH, YOU LOOK AT WHAT'S BEEN SPECKED FOR THE NEW AIRPORT, UH, EXPANSION.

IT'S PROBABLY LOW BID.

UH, ELEVATORS STAY SICK FOR A LONG TIME AT BERGSTROM, UH, AT HOSPITALS.

THEY HAVE A MAINTENANCE CREW OUT THERE IN FOUR HOURS.

THAT'S THEIR AGREEMENT.

UH, YOU DON'T NEED TO HAVE THE KIND OF SERVICE PROBLEMS WITH ESCALATORS, ELEVATORS, UH, LIKE YOU, UH, LIKE THEY HAVE AT, UH, BERGSTROM.

UM, THE SERVICE CONTRACTS ARE CRITICAL ON THE ELEVATORS.

YOU DO HAVE.

THE NEW ELEVATORS THAT ARE GOING INTO THE EXPANSION ARE EQUALLY CRITICAL.

I SUGGEST THAT YOU LOOK AT THE CONTRACTS, LOOK AT THE SERVICE CONTRACTS, AND DO A, UH, UH, A BASELINE AGAINST OTHERS AROUND THE COUNTRY.

UH, I THINK THERE ARE PROPERTY MANAGERS WITH LARGE OFFICE BUILDINGS.

THERE ARE PROPERTY MANAGERS WITH HOSPITALS.

THEY CAN GIVE YOU ADVICE, CAN GIVE YOU GUIDANCE ON THE, UH, PEOPLE MOVER SYSTEMS. IT'S SICK, IT'S BROKEN.

IT DOESN'T NEED TO BE AS BAD AS IT IS.

UH, PEOPLE MISS PLANES BECAUSE OF IT.

UH, IT'S JUST, UH, INAPPROPRIATE.

THE SECOND THING IS SHUTTLES.

YOU CAN SEE PEOPLE WALKING FROM THE DISTANT LOTS, UH, WITH BAGS AND KIDS, AND THEY NEVER SEE A SHUTTLE.

THE PEOPLE THAT LOVE IT ARE THE OFFSITE OPERATORS.

THEY THINK THEY GET HUGE NUMBER OF CUSTOMERS, SIMPLY BECAUSE IF WE'RE NOT THAT MUCH MORE MONEY THAN STROM SELLS, UH, CHARGES FOR ITS PARKING, SIMPLY BECAUSE BERKING BERGSTROM, UH, DOES NOT RUN SHUTTLE OPERATION FREQUENTLY.

DON'T BELIEVE ME.

YOU CAN DO TWO THINGS.

YOU CAN GO OUT TO A DISTANT LOT AND SEE HOW LONG IT TAKES TO GET A SHUTTLE ARE SIMPLY OUTSIDE OF BAGGAGE CLAIM.

LOOK HOW OFTEN YOU GUYS SEE, UH, SHUTTLES FOR THE PRIVATE OFFSITE OPERATORS VERSUS THE NUMBER OF SHUTTLES YOU SEE, UH, UH, UH, FROM, UH, FROM .

ONE LAST, WAS THAT THREE MINUTES? YEAH.

ONE LAST, UH, COMMENT.

UH, ONE OF THE THINGS WE LEARNED WITH THE MAGAZINE THAT EXCELLENCE IS NOT NECESSARILY A COMMITMENT OF MONEY AS MUCH AS IT IS A COMMITMENT TO EXCELLENCE.

UH, MY SUGGESTION AS A MEMBER OF A COMMISSION, WE WERE THE FIRST, WE, MY COMMISSION STARTED THE AUSTIN TRAVIS COUNTY EMSI WAS THE FIRST ON THE FIRST PUBLIC TRADE, UH, SAFETY COMMISSION.

OUR JOB WAS TO CHALLENGE STAFF.

MY SUGGESTION AS A PASSENGER IS THAT, I HOPE YOU WILL.

IT DOESN'T NEED TO BE AS BAD AS IT IS.

IT CAN BE A LOT, BE, UH, BETTER.

[00:05:01]

WELL, WE HAVE A LOT OF PASSENGERS AS AN EXCUSE.

THANK YOU VERY MUCH FOR YOUR TIME.

I APPRECIATE IT.

THANK YOU, MR. LEVY, FOR COMING TODAY.

[APPROVAL OF MINUTES]

UH, WE DID NOT HAVE A MEETING IN DECEMBER OF 2025.

IS THERE A MOTION TO APPROVE THE MINUTES? I'LL MAKE THAT MOTION.

THANK YOU, MS. HENDRICKS.

IS THERE A SECOND? I'LL SECOND.

THANK YOU, MR. UH, WILSON.

AND ALSO WANT TO NOTE THAT, UH, UH, COLE WILSON HAS JOINED US.

THANK YOU.

ALL RIGHT.

SO WE HAVE A, A MOTION TO SECOND ANY COMMENTS OR DISCUSSION? IF NOT ALL IN FAVOR OF THIS MOTION, PLEASE RAISE YOUR RIGHT HAND.

MOTION PASSES UNANIMOUSLY.

THANK YOU.

ALRIGHT.

[2. Briefing on November 2025 Financial Results presented by Rajeev Thomas, Chief Financial Officer]

OUR FIRST, UH, BRIEFING WILL BE, UH, A BRIEFING ON NOVEMBER, 2025, FINANCIAL RESULTS PRESENTED BY RAJIV THOMAS, OUR CHIEF OF FINANCIAL OFFICER.

WELCOME.

OH, NOW HE'S NOT, HE'S NOT HERE.

.

YES.

UM, GOOD AFTERNOON.

UH, I'M ANUPA GARRE.

I AM THE AIRPORT DEPUTY CHIEF OF FINANCE.

OKAY.

UM, PRESENTING ON BEHALF OF, UH, RAJIV WITH ME IS WILL MAC.

HE'S OUR AIRPORT FINANCIAL MANAGER WHO'S GONNA HELP ME ANSWER ANY QUESTIONS.

OKAY.

UM, STILL NAVIGATING NEW IN THE, UH, POSITION.

SO I'LL JUST GO OVER QUICKLY.

THE NOVEMBER, UH, RESULTS YEAR OVER YEAR.

I'LL START WITH THE YEAR, YEAR OVER YEAR.

WE HAD A, FOR THIS YEAR, WE HAD A PRETTY GOOD, UM, RESULT IN TERMS OF UNEMPLOYMENTS AND LANDING WEIGHTS.

WE HAD GOOD GROWTH FROM, FOR YEAR OVER YEAR.

FOR NOVEMBER, WE SAW A 3.6% INCREASE IN OUR UNEMPLOYMENTS.

AND FOR YEAR TO DATE, IT WAS 6.5%.

THE LANDING RATES ALSO INCREASED, UH, 6.2% FOR THE MONTH OF NOVEMBER AND 6.6 PER YEAR TO DATE.

UM, THAT COMBINED WITH THE FACT THAT THE NEW RATES WENT INTO EFFECT IN OCTOBER.

THESE WERE THE RATES IN THE BRIDGE AIRLINE USE AND LEASE AGREEMENT.

UH, WE HAD A ROBUST, UH, INCREASE IN OUR AIRLINE REVENUE, 45% FOR THE MONTH OF NOVEMBER, AND 46% YEAR TO DATE, UH, THAT WAS ABOUT 6.4 MILLION FOR, UH, NOVEMBER AND 13.4 MILLION.

YEAR TO DATE.

THE NON AIRLINE REVENUE ALSO, UH, UH, WAS, UM, HELPED WITH THIS PASSENGER ACTIVITY.

UH, WE HAD 10% INCREASE IN OUR NON-AIR AIRLINE REVENUE AND 9%, UH, FOR THE MONTH OF NOVEMBER AND 9% YEAR TO DATE.

SO THE TOTAL OPERATING REVENUE INCREASED 28% FOR THE MONTH OF NOVEMBER AT $7.7 MILLION.

AND YEAR TO DATE WAS $16 MILLION.

UH, SO GOOD PERFORMANCE FOR, UH, FOR THIS YEAR, FOR LAST COUPLE OF MONTHS.

UM, THE OPERATING EXPENSES, UH, TYPICALLY YOU WOULD SEE THE OPERATING EXPENSES INCREASE YEAR OVER YEAR BECAUSE THE COST OF THINGS GO UP.

UH, THIS YEAR, IF YOU LOOK AT OUR, UH, YEAR OVER YEAR, YOU'LL SEE A, UH, ACTUALLY A FAVORABLE, UH, VARIANCE, WHICH MAKES IT LOOK LIKE WE SPENT LESS AMOUNT OF MONEY.

BUT REALLY THAT WAS BECAUSE OF THE TIMING OF OUR GAIN SHARING PAYOUT.

LAST YEAR.

WE, UH, PAID THAT, UH, WE DID THE PAYOUT IN NOVEMBER THIS YEAR.

WE HAVEN'T PAID THAT.

WE PAID THAT IN DECEMBER.

SO THERE IS A TIMING DIFFERENCE.

AND BECAUSE OF THAT, UM, IT LOOKS LIKE WE'VE SPENT LESS, BUT WE HAVEN'T.

SO IF YOU TAKE THAT, UM, THAT PAYOUT PIECE OUT, WE DID SPEND MORE MA MORE MONEY ABOUT 14%, UH, MORE THAN LAST YEAR.

BUT THAT WAS IN LINE WITH WHAT WE EXPECTED IN THE BUDGET.

SO IF YOU LOOK AT THE BUDGET, WE ARE RIGHT ONLINE, UH, WITH THOSE EXPENSES.

UH, THE DEBT SERVICE, ALSO, THERE'S A SMALL UNFAVORABLE EX, UM, UM, VARIANCE OF $1 MILLION.

AND THAT WAS BECAUSE OF, UH, UM, AN OPPORTUNITY LAST YEAR THAT WE TOOK TO USE OUR INTEREST EXPENSE THAT WE HAD EARNED TO PAY OFF, UH, THE 2017 BOND ISSUANCE DEBT SERVICE COST, AND WHICH WE JUST PAID THE REGULAR DEBT SERVICE THIS YEAR.

SO THAT VARIANCE IS BECAUSE OF THAT.

BUT NOTHING UNEXPECTED FOR AS FAR AS BUDGET IS CONCERNED.

THE OTHER REQUIREMENTS COMPRISE OF THE COSTS WE PAY TO OTHER DEPARTMENTS FOR THE SERVICES THAT THEY PROVIDE TO US AND SOME OF OUR OTHER TRANSFERS.

UM, AGAIN, THIS IS SOMETHING WE EXPECT WILL INCREASE YEAR OVER YEAR, AND SO IT IS IN LINE WITH WHAT WE EXPECTED.

NOTHING OUT OF, OUT OF THE ORDINARY.

UH, SO IF YOU LOOK AT VERSUS BUDGET, UH, TOTAL REVENUES INCREASED 3.1% OVER BUDGET.

SO THAT WAS A GOOD PERFORMANCE.

THE TOTAL REQUIREMENTS ARE

[00:10:01]

AND SO BOTTOM LINE, YEAR OVER YEAR, WE'VE HAD A HEALTHY SURPLUS GROWTH OF ABOUT 107%.

AND I KNOW THERE'S AN ANOMALY OF THAT LITTLE PAYOUT, BUT, UH, JUST INCLUDING THAT, JUST WE HAD 107% SURPLUS LOAD FOR THE MONTH OF NOVEMBER AND 70% YEAR TO DATE.

AND FROM THE BUDGET PERSPECTIVE, WE ARE SEVEN.

WE ARE OVER 7% HIGHER THAN BUDGETED SURPLUS, UH, AT THIS POINT ON A YEAR TO DATE BASIS.

SO PRETTY GOOD PERFORMANCE FOR THE FIRST COUPLE OF MONTHS.

WE'LL SEE HOW THE YEAR SHAKES OUT.

AND THAT'S ALL I HAVE.

DO YOU HAVE ANY QUESTIONS? WELL, THANK YOU.

UH, COMMISSIONERS, COMMENTS, QUESTIONS.

YOU KNOW, I THINK THE THREE POINT, UH, 13.1 MILLION OR SO, UH, IS, IS DEFINITELY A GREAT STEP AND VERY, VERY EXCITING.

UH, EVERYTHING'S HEADING IN THE RIGHT DIRECTION, ESPECIALLY WITH OUR ECONOMY RIGHT NOW.

TO BE ABLE TO REALLY STAY ON BUDGET IS REALLY PRETTY AMAZING.

SO THAT'S VERY EXCITING.

I I, I AM CURIOUS ON THE CARGO VOLUME DECREASE OF 9% DUE TO ADJUSTMENTS TO AIR CARGO CARRIER STRATEGIES AND DECLINE YEAR OVER YEAR.

BELLY FREIGHT VOLUMES ARE PEER, UH, AIRPORT, OTHER PEER AIRPORTS.

IS THIS A SIMILAR TREND OR DO YOU KNOW? UM, I DON'T HAVE AN ANSWER TO THAT, BUT IF OPERATIONAL, WELL, WE CAN LOOK AND FOLLOW UP DEFINITELY, BUT WE DO KNOW THAT THERE WAS AN INCREASE OR AN UPTICK IN AIR CARGO BEFORE THE TARIFFS AS THE MANUFACTURERS AND FREIGHT FORWARDERS WORK TO AVOID TARIFFS.

AND THERE WAS A LARGE LUMP THERE.

SO, UH, WE CAN FOLLOW UP SPECIFICALLY WITH OUR PEER AIRPORTS.

OKAY, THANK YOU.

BEFORE WE MOVE ON, ANY OTHER COMMENTS OR QUESTIONS? OKAY.

WELL THANK YOU FOR YOUR PRESENTATION.

ALRIGHT,

[3. Briefing on January 2026 Air ServiceUpdate provided by JamyKazanoff, AUS Air Service Development]

AND THAT'S, UH, A BRIEFING ON, UH, JANUARY, 2026 AIR SERVICE UPDATE PROVIDED BY, UH, JAMIE KOFF, A US AIR SERVICE, UH, DEVELOPMENT.

WELCOME.

THANK YOU VERY MUCH.

GOOD AFTERNOON COMMISSIONERS.

UH, THE GOOD NEWS IS, UH, WE'RE HERE IN JANUARY AND JANUARY AND FEBRUARY ARE TYPICALLY OUR SLOWEST MONTHS, JUST HISTORICALLY FOR THE LAST 25 PLUS YEARS.

AND IN THIS JANUARY, FEBRUARY AND MARCH IN FIRST QUARTER, WE ARE UP 9.5% MORE SEATS.

THAT MEANS THAT'S NEARLY 10% MORE SEATS FOR SALE, WHICH COULD EQUATE TO THAT MANY MORE PASSENGERS, HOPEFULLY.

UM, ALLEGIANT, I'M JUST GONNA POINT OUT ALLEGIANT.

THERE WAS NEWS RECENTLY WITH ALLEGIANT WILL BE, UH, ACQUIRING SUN COUNTRY.

SO THAT WILL COMBINE TWO LEISURE CARRIERS AND WE'RE EXCITED ABOUT THAT.

I THINK IT MAY MAKE TWO CARRIERS EVEN HEALTHIER COMBINED.

AND, UM, WE HOPE TO TAKE ADVANTAGE AND, AND GROW THAT SEGMENT IN OUR MARKET.

SO I BELIEVE THAT WILL HAPPEN IN AUGUST OR SEPTEMBER.

BUT THERE'S BEEN PUBLICITY ABOUT THAT WITH ALLEGION.

THEY ARE CURRENTLY SERVING SEVEN MARKETS FROM AUSTIN.

THEY'LL SERVE 11 THIS SUMMER.

AMERICAN HAS ADDED KENTUCKY DERBY, UH, IN APRIL AND MAY VA.

JUST A GENERAL REMINDER, THEY GO TO THEIR DOUBLE DAILY MARCH 29TH WITH, UH, TWO DIFFERENT AIRCRAFT.

THE A THREE 50 AND THE 7 8 7 8 COPA HAS EXTENDED ITS TYPICAL FLIGHT SCHEDULED TO FIVE A WEEK FOR APRIL THROUGH AUGUST.

THIS CARRIER IS FAIRLY NEW.

SO TO SEE THEM GROW AND CONTINUE TO BE SUCCESSFUL IN AUSTIN IS FANTASTIC.

DELTA HAS MADE A LOT OF ATTENTION LATELY IN AUSTIN.

UM, MANY OF THE NEW NONSTOPS THAT WE'VE GOT COMING UP THIS QUARTER OR COMING FROM DELTA, LET'S SEE, THEY JUST STARTED ACTUALLY IN DECEMBER, CABO DECEMBER 20TH, WHICH IS SEASONAL.

AND DELTA ALSO STARTED CANCUN DECEMBER 20TH, GOT MORE TO COME.

THEY ALSO ADDED A KENTUCKY DERBY SERVICE, FRONTIERS EXTENDED SCHEDULES, AND THEY HAVE A NEW FLIGHT INTO NEW ORLEANS FOR MARDI GRAS, WHICH IS COMING UP.

JETBLUE IS OPERATING ONLY ONCE A DAY RIGHT NOW IN THIS LOW PERIOD TO FORT LAUDERDALE, BUT THEY'LL POP BACK UP TO 2K LM, WHICH GOES TO AMSTERDAM NONSTOP, OF COURSE.

UH, LAST JUNE IN 25, THEY FLEW FIVE TIMES A WEEK, BUT THIS JUNE THEY'RE SCHEDULED FOR FOUR TIMES A WEEK.

SO WE'RE SEEING A LITTLE CORRECTION THERE WITH THE INTERNATIONAL, PERHAPS DUE TO THE DOUBLE DAILY WITH VA OR PERHAPS OTHER REASONS.

BUT WE, WE ARE SEEING A ONE FREQUENCY DECREASE THERE.

LUFTHANSA WILL BE FLYING FIVE TIMES A WEEK WITH THE 7, 8, 7 9 STARTING THIS SUMMER.

WHEN I SAY SUMMER, THAT'S THE IATA SCHEDULE, AND THAT STARTS MARCH 29TH.

SOUTHWEST IS AT RECORD BREAKING PACE HERE AT AUSTIN, AND OF COURSE THEY ANNOUNCED THE, THE FULL

[00:15:01]

WE ARE GRATEFUL FOR THAT.

THEY'VE ALSO ADDED RECENTLY CLEVELAND SERVICE FOR UT COLLEGE FOOTBALL IN KENTUCKY.

DERBY.

UH, VIVA VIVA HAD ANNOUNCED, AS WE KNOW, UH, A NEW MARKET AND, UH, THEY CANNOT FLY IT YET BECAUSE OF, UH, CONDITIONS IN MEXICO AND THAT'S STILL INTACT.

UM, THEY DO HAVE IT FOR SALE IN, IN MAY, UM, TO THE NEW AIRPORT IN MEXICO CITY, NLU.

AND IN THE MEANTIME THOUGH, I'M HAPPY TO SEE THAT THEY'VE ADDED AND BOOSTED SOME OF THEIR MONTEREY DEPARTURES.

SO THEY WERE ABLE TO DO THAT WITHIN THE CONFINES OF THE RESTRICTIONS AT THE FEDERAL GOVERNMENT LEVEL.

AND SO WE, WE GOT A FEW MORE FREQUENCIES THAT WAY.

OVERALL.

JANUARY 26 IS FIVE DESTINATIONS OVER JANUARY 25 WAS, LOVE TO HEAR THAT OUR, UH, NONSTOP DEPARTURES ARE UP.

9% ARE, UH, WITH SEATS RATHER ARE UP 9%.

AND OUR NUMBER OF DEPARTURES, THE NUMBER OF JETS LEAVING AUSTIN ARE UP 10% IN JANUARY.

UM, WHAT ELSE DO I HAVE AFTER THIS MARCH WAVE? THE NEXT NEW NONSTOPS WILL START IN JUNE.

AND JUST, UH, A REMINDER ABOUT HOW WE'RE SEEING SHIFTING MARKET SHARE IN AUSTIN WITH DELTA GROWING SO MUCH HERE.

SOUTHWEST THIS TIME LAST YEAR HAD 45% OF THE SEATS FOR SALE.

THEY HAVE 42% THIS YEAR.

UH, LAST YEAR AMERICAN WAS NUMBER TWO AND AMERICAN'S NUMBER THREE.

NOW DELTA'S GOT 18% WHERE THEY WERE 15% LAST YEAR.

UM, WE ALL KNOW ABOUT THE USE AND LEASE AGREEMENTS THAT WERE SUCCESSFULLY SIGNED BY THE SIGNATORY CARRIERS.

VERY GRATEFUL.

THAT'S AN, AN OUTSTANDING, UM, OWED TO OUR FUTURE WITH THESE MAJOR CARRIERS.

UM, LET'S SEE, WHAT ELSE COULD I TOUCH BASE ON? THAT'S, UH, I JUST WANNA REMIND EVERYBODY THAT NEXT MONTH WE'LL HAVE A DEEP DIVE FOCUS INTO INTERNATIONAL AIR SERVICE, SIMILAR TO WHAT WE DID FOR DOMESTIC.

WE'LL TALK ABOUT OUR GOALS, WE'LL TALK ABOUT WHERE WE'RE HEADED, WHERE WE WANNA GO, UH, WHAT MAY THWART US FROM GETTING THESE FLIGHTS SOONER THAN WE'D LIKE.

AND, UH, WE'RE BRINGING IN OUR AIR SERVICE CONSULTANT, KEVIN SHORE WITH CAMPBELL HILL AVIATION.

HE'LL ACCOMPANY ME NEXT MONTH.

THANK YOU.

WELL, THANK YOU.

ANY COMMENTS OR QUESTIONS? MS. COMMISSIONER WILSON? SIR, I HAVE A QUICK QUESTION AND THIS, THIS MAY BE A NOTE FOR NEXT MONTH.

OKAY, THANKS.

AND IT ALSO, MY MY UNDERSTANDING MAY, MAY BE OFF AS WELL, SO PLEASE CORRECT ME, UH, IF, IF IT IS, UM, I UNDERSTAND THAT A LARGE PORTION OF THE BUSINESS, ESPECIALLY FOR TRANSATLANTIC FLIGHTS, IS PREMIUM, UH, GOODS AS IN YOU HAVE YOUR PASSENGERS, BUT YOU ALSO HAVE YOUR, YOUR BULK ITEMS THAT MAKE UP A LOT OF OUR BUSINESS ON THOSE HANZA, KLM, BRITISH AIRWAYS FLIGHTS WITH THE DISCUSSION OF, OF TARIFFS IMPACTING, UH, UH, OUR BULK TRANSIT, RIGHT.

OUR, OUR OUR AMAZONS ARE OR WHAT HAVE YOU.

ARE WE SEEING, DO YOU PREDICT OR IS THERE THERE ANY SORT OF NEWS, I SUPPOSE, ON HOW THOSE TARIFFS MIGHT IMPACT KLMS TO BRITISH AIRWAYS TO LA HANZA IN REGARD TO BELLY FREIGHT? YES.

YEAH.

AND THEN IN TURN TO OUR PASSENGER FLIGHT, WE DON'T KNOW EXACTLY, I MEAN, MY FIRST INDICATOR THERE WAS KALE THAT'S PULLED BACK ONE FREQUENCY PRECISELY THAT COULD BE UP TO A VARIETY OF DIFFERENT, UM, FACTORS AFFECTING THEM.

MM-HMM .

UM, WE ARE IN THE MIDST OF DOING AN AIR CARGO STUDY THAT WE'LL SHARE THE HIGH LEVEL POWERPOINT WITH THE COMMISSION WHEN THAT'S COMPLETED LATER, THIS FIRST HALF OF 2026.

UM, PART OF THAT INCLUDES SOME INTERVIEWS WITH THE LARGE MANUFACTURERS.

SO WE MAY BE ABLE TO PICK UP SOME OF THAT DATA THERE AND, UH, SHARE THAT WITH YOU.

OKAY.

WONDERFUL.

THANK YOU.

THANK YOU.

ANY MORE COMMENTS OR QUESTIONS? IF NOT, THANK YOU FOR THE PRESENTATION.

I ALSO WANNA SAY, UM, UH, COMMISSIONER C***S HAS JOINED US ALSO VIRTUALLY WELCOME.

[4. Briefing on Journeywith AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer]

THE NEXT ITEM ON THE, UH, ITEM ON JUNE NUMBER FOUR, IT'S ON PAGE 26, UH, BRIEFING ON, UH, JOURNEY WITH A US I'LL SEND A ADPS IN CAPITAL IMPROVEMENT PROGRAM, ACTIVE PROJECTS PROVIDED BY LYNN ESTHER BROOK, DEPUTY CHIEF DEVELOPMENT OFFICER.

WELCOME.

THANK YOU, COMMISSIONER AND CHAIR.

UM, WELCOME EVERYBODY.

IF, UH, THE PRESENTATION COULD START WITH

[00:20:01]

OKAY.

SO ONE MORE TO THE PICTURES.

I ALWAYS LOVE TALKING ABOUT THE PICTURES.

THE SCHEDULE IS STILL ON SCHEDULE, UM, WITH FINISHING END OF THIS, UH, FIRST QUARTER, FIRST QUARTER ONE.

UM, SO THAT'S THE SCHEDULE.

AND THEN ON THE NEXT SLIDE IS THE IMAGE.

UM, AND I REALLY WANTED TO SHOW THIS IMAGE BECAUSE IT'S, THAT IS THE STAIR TO THE MEZZANINE AND IT'S OPEN ON THE OTHER SIDE TO THE REST OF THE CONCOURSE.

SO THAT'S HOW CLOSE WE ARE TO REALLY BEING DONE WHERE THEY'RE WORKING ON, ON THE FINISHES THAT ARE RIGHT THERE NEXT TO THE CONCOURSE.

SO EVERYTHING ELSE IS DONE, THE FLOOR IS DONE, AND THE MACHINES ARE GOING IN FOR THE SCREENING AND THEY'RE TESTING THEM RIGHT NOW.

SO THIS PROJECT HAS REALLY COME ALONG, UM, AND WE'RE REALLY EXCITED TO BE ABLE TO OPEN THIS BY THE END OF THIS FIRST QUARTER.

AND THEN IF WE MOVE ON TO THE NEXT PROJECT, THE WESTGATE EXPANSION, AND GO TO THOSE IMAGES AS WELL.

THIS IS ANOTHER PROJECT THAT'S IN CONSTRUCTION THAT'S WORKING TOWARDS, UM, OPENING SOME OF IT BY THE END OF THE FIRST QUARTER.

THERE WE GO.

YOU GOT AN IMAGE OF THE RESTROOMS AND AN IMAGE OF THE INTERIOR CLADDING AND WALL WALLS GOING IN THAT'S IN THE BIG OPEN AREA.

SO THAT'S HOW CLOSE WE ARE AS WELL TO BEING FINISHED.

AND SO I JUST WANTED TO HIGHLIGHT, UM, THAT THOSE INTERIOR FINISHES ARE CURRENTLY BEING WORKED ON.

WE WANNA MOVE TO THE NEXT PROJECT IS THE GARAGE PROJECT.

THIS IS QUICKLY MOVING ALONG.

UM, IT'S EXCITING TO SEE IT AT MY WINDOW EVERY DAY AND THE IMAGES OF THIS PROJECT AND IS REALLY GREAT.

THAT LARGER IMAGE, UM, SHOWS THE NEW RAMP THAT'S GOING TO GET PEOPLE IN TO THE GARAGE BEING CONSTRUCTED THERE.

ON THE SOUTH SIDE, IT SHOWS 50% OF THE PRECAST PANELS.

THAT'S SORT OF THOSE GRAY STRIPED PANELS THAT YOU SEE ARE UP.

AND OF THE 456 PEERS, 447 OF THEM ARE DONE.

SO WE ARE REALLY CLOSE TO, TO GETTING THERE.

UM, THIS PROJECT'S MOVING ALONG GREATLY.

UM, AND AS YOU SEE, LIKE ANY DAY IT FEELS LIKE THAT WE WILL BE THERE OR MOVING SO, SO FAST WITH THIS PROJECT.

UM, AND THEN ON THE NEXT PROJECT, THE INFILL, THE ATRIUM INFILL PROJECT, THAT ONE ALSO IS MOVING AHEAD VERY QUICKLY AND ON THE IMAGE IT'S REALLY GREAT TO SHOW THE FLOOR'S IN SO THERE'S NO MORE ATRIUM.

AND THAT'S WHAT I REALLY WANTED TO SHOW IS THAT THERE'S NO MORE ATRIUM.

THE FLOOR IS COMPLETELY IN, THE CONCRETE IS POURED AND THEY'RE WORKING BELOW, UM, ON THE CEILING.

SO IF YOU SHOW UP AT, AT THE AIRPORT IN YOUR IN BAGGAGE CLAIM, YOU WILL SEE SOME SCAFFOLDING THAT'S HANGING DOWN.

IT'S NOT SCAFFOLDING THAT'S FROM THE FLOOR UP.

IT'S THE OTHER WAY AROUND.

UM, WE DECIDED THAT WAS THE BEST OPTION FOR THIS PROJECT SO THAT THE BAGGAGE CLAIM AREA WAS FREE OF COLUMNS FOR CONSTRUCTION.

SO THIS ONE, UM, SHOULD BE FINISHED BY THE, UM, BEGINNING OF QUARTER FOUR OF THIS YEAR.

SO IT'S QUICKLY MOVING ALONG.

AND THEN I JUST WANTED TO GO TOWARDS THE LAST PAGE OF THE PRESENTATION THAT TALKED ABOUT THE PRIME CONTRACTORS BECAUSE WE'VE GOT SOMETHING VERY SPECIAL HAPPENING.

FEBRUARY 10TH.

WE ARE HOSTING, UM, OF RUNWAY OPPORTUNITIES.

IT'S AN OUTREACH EVENT.

WE'VE DONE THIS IN PREVIOUS YEARS.

THIS IS OUR SECOND YEAR RUNNING.

UH, WE DID SOMETHING DIFFERENT THE THIRD YEAR PAST.

UM, IN 2025, WE SAW 50 NEW BUSINESSES REGISTERED WITH THE CITY.

AND THE FEEDBACK WE'VE RECEIVED SO FAR ON THE RSVPS, WE'RE LOOKING FOR A LARGER, UM, ATTENDANCE EVEN THAN LAST YEAR.

UM, AND THIS FOCUS IS REALLY FOR THE PRIME, UM, CONTRACTORS TO BE THERE FOR THE SUBS.

SO WE ARE LOOKING FOR A COME ONE, COME ALL ON THE SUBS SO THEY CAN UNDERSTAND THE OPPORTUNITIES THAT ARE AROUND THE CORNER FOR ALL OF THE GUARANTEED MAXIMUM PRICE BIDDING THAT'S GOING TO HAPPEN FOR THESE NEW PROJECTS.

SO IT'S FEBRUARY 10TH, IT'S AT FROM EIGHT TO 1230 AT THE TCEA CONFERENCE SPACE.

AND, UM, YOU'LL SEE AN INVITE FROM OUR, UM, OUTREACH TEAM COMING TO YOU GUYS PROBABLY THAT FIRST WEEK OF FEBRUARY.

BUT I WANTED TO GIVE EVERYBODY A HEADS UP BECAUSE THIS EVENT WILL HAPPEN, UM, BEFORE THE NEXT MEETING.

AND SO I WON'T BE ABLE TO TELL YOU ABOUT IT 'CAUSE IT WOULD'VE ALREADY HAPPENED.

SO THEN THAT'S THE UPDATE FOR THIS MONTH.

THE MORE WE CAN COMMUNICATE TO OUR, OUR, UH, COMMUNITY AND CONTRACTORS, UH, PEOPLE, ESPECIALLY PEOPLE WHO HAVEN'T BEEN INVOLVED BEFORE, TO UNDERSTAND WHAT'S GONNA BE HAPPENING, ESPECIALLY THE

[00:25:01]

SO THIS IS VERY EXCITING THAT Y'ALL ARE MAKING THE TIME AND, AND DOING THAT BECAUSE IT'S REALLY IMPORTANT FOR, UH, OUR WHOLE BUSINESS COMMUNITY OUT THERE.

OKAY, THERE'S NO OTHER COMMENTS OR QUESTIONS.

WE'LL MOVE

[5. Briefing on Austin Aviation Procurement presented by Shawn Willett, Deputy Procurement Officer, City of Austin]

IT'S ON PAGE 47.

IT'S A BRIEFING OF AUSTIN AVIATION PROCUREMENT, PRESENTED BY, UH, SEAN WILLETT, UH, DEPUTY PROCUREMENT OFFICER OF CITY OF AUSTIN.

WELCOME, GOOD AFTERNOON CHAIR AND COMMITTEE MEMBERS.

UM, AS YOU SAID, MY NAME IS SEAN WILLETT.

I'M THE DEPUTY PROCUREMENT OFFICER FOR AUSTIN FINANCIAL SERVICES.

UM, THANKS FOR HAVING ME HERE TODAY TO GIVE JUST A BRIEF OVERVIEW OF PROCUREMENT ACTIVITIES IN THE CITY, UM, SPECIFICALLY FOR AVIATION, BUT IT'S THE SAME FOR ALL DEPARTMENTS.

UM, I HAVE SEVERAL SLIDES, BUT WE'LL GO THROUGH THEM PRETTY QUICKLY.

PLEASE FEEL FREE TO STOP ME AT ANY TIME IF YOU HAVE ANY QUESTIONS.

UM, DON'T FEEL LIKE YOU NEED TO WAIT UNTIL THE END.

UM, IF YOU CAN GO TO THE NEXT ONE TODAY.

THE TOPICS I'M GONNA COVER TODAY ARE WHO PROCUREMENT IS, LIKE, WHERE WE ARE IN THE ORGANIZATION, WHAT WE'RE RESPONSIBLE FOR, WHY WE DO THINGS THE WAY THAT WE DO THEM, WHICH IS OFTEN A QUESTION AS WELL AS WHAT WE DO AND HOW WE DO IT.

SO WE'RE GONNA START WITH WHO WE ARE.

THE FIRST SLIDE HERE WILL SHOW WHERE WE'RE LOCATED WITHIN THE CITY MANAGERS ORGANIZATION.

UM, AS YOU SEE, FINANCIAL SERVICES IS A DE DE DEPARTMENT UNDER, UM, THE CHIEF FINANCIAL OFFICER, ED VAN NINO.

THE NEXT SLIDE WILL JUST BREAK DOWN.

THIS IS CENTRAL PROCUREMENT.

UM, WITHIN FINANCIAL SERVICES.

UM, WE'RE DIVIDED INTO FOUR TEAMS. UM, WE HAVE ONE TEAM THAT HANDLES ALL OF OUR POLICIES, PROCEDURES, AND THEY HELP WITH EMERGENCY PROCUREMENT.

WE HAVE ANOTHER TEAM THAT DOES THE CONSTRUCTION FOR ALL DEPARTMENTS OTHER THAN AVIATION.

AND THEN WE HAVE THE TWO TEAMS THAT FALL UNDER ME.

ONE OF THEM IS THE EMBEDDED TEAM, AND THESE ARE THE TEAMS THAT ARE DEDICATED TO PROVIDE SUPPORT TO SPECIFIC DEPARTMENTS.

THEY HANDLE ALL CONTRACTS THAT ARE USED ONLY BY THAT SINGLE DEPARTMENT, AND THEY'RE ALSO LOCATED AT THE DEPARTMENT'S LOCATION TO KIND OF PROVIDE MORE, KIND OF MORE IMMEDIATE AND UM, KIND OF ONSITE SERVICE FOR THOSE DEPARTMENTS.

UM, I ALSO HAVE ANOTHER TEAM, AND THESE HANDLE ALL THE CONTRACTS THAT ARE USED BY MORE THAN ONE DEPARTMENT, AS WELL AS CONTRACTS THAT ARE USED BY THOSE OTHER DEPARTMENTS THAT DON'T HAVE EMBEDDED TEAMS. UM, HERE WE SHOW THE EMBEDDED TEAMS, AND I JUST WANTED TO KIND OF SHOW YOU, UM, THERE'S TWO EMBEDDED TEAMS WE CURRENTLY HAVE WITH THE CITY.

ONE IS WITH AUSTIN ENERGY, AND THE OTHER ONE AS YOU CAN SEE, IS FOR AVIATION.

AND SO THAT TEAM PROVIDES SUPPORT FOR ALL AVIATION, UH, CONTRACTS, WHETHER IT BE GENERAL CONTRACTS OR THE CONSTRUCTION CONTRACTS.

UM, NEXT WE'RE GONNA TALK ABOUT WHAT WE DO AND HOW WE DO IT.

UM, I'M GONNA READ THE SLIDE, WHICH I USUALLY DON'T DO, BUT JUST AS AN IMPORTANT LIKE KIND OF BASELINE.

UM, THE INSTITUTE, INSTITUTE FOR PUBLIC PROCUREMENT DEFINES PURCHASING AS RENTING, LEASING OR OTHERWISE ACQUIRING ANY SUPPLIED SERVICES OR CONSTRUCTION, AND ALL FUNCTIONS THAT PERTAIN TO THE ACQUISITION, INCLUDING DESCRIPTION OF REQUIREMENTS SELECTION AND SOLICITATION OF SOURCES PREPARATION AND AWARD OF CONTRACT IN ALL PHASES OF CONTRACT ADMINISTRATION.

AS YOU CAN SEE IN THIS DIAGRAM, THIS IS NOT SOMETHING THAT'S DONE BY ANY ONE TEAM.

IT IS DEFINITELY A TEAM EFFORT BETWEEN THE DEPARTMENT AND CENTRAL PROCUREMENT.

THE DEPARTMENT DEVELOPS, UH, THE REQUIREMENTS, THEY DO THE PLANNING, THEY MAKE THE PURCHASE REQUEST.

THEY'RE REALLY RESPONSIBLE FOR SPECIFICATIONS AND SCOPES OF WORK.

AT THAT POINT IN TIME, THEY HAND IT OVER TO CENTRAL PROCUREMENT AND THAT'S WHERE WE TAKE OVER AND WE WORK ON THE SOURCING, ANY SOLICITATIONS, THE CONTRACT NEGOTIATIONS, COUNCIL APPROVAL, AND CONTRACT EXECUTION.

AFTER WE EXECUTE THE CONTRACT, WE THEN HAND THAT CONTRACT BACK OVER TO THE DEPARTMENT AND THEY HANDLE THE DAY-TO-DAY CONTRACT MANAGER MANAGEMENT AND MONITORING.

UM, ONE THING TO NOTE IS, EVEN AFTER THAT CONTRACT IS AWARDED ANY CONTRACT AMENDMENTS OR ANY FORMAL NOTICES THAT COULD RESULT IN CONTRACT ACTION LIKE CURE NOTICES FOR US, UH, SUBSTANDARD PERFORMANCE, THOSE ALSO COME BACK TO CENTRAL PROCUREMENT.

UM, NEXT, AND I'M NOT GONNA GO THROUGH ALL THESE, BUT WE ALWAYS ARE ASKED WHY WE DO WHAT WE DO.

I THINK WE ALL KNOW, YOU KNOW, REASONABLY OUR, OUR PROCESSES CAN SEEM A BIT CUMBERSOME.

UM, BUT THAT IS BASICALLY BECAUSE WE HAVE OUR LOTS OF DIFFERENT GUIDANCE THAT'S GIVEN TO US.

UM, EVERYTHING FROM, WE HAVE MULTIPLE STATE STATUTES THAT VERY DISTINCTLY TELL US HOW WE HAVE TO DO WHAT WE DO, WHAT WE CAN DO, AND WHAT WE CAN'T DO.

UM, WE ALSO HAVE CITY CHARTER ADMINISTRATIVE BULLETINS AND SEVERAL COUNCIL POLICIES THAT DIRECTLY AFFECT PROCUREMENT.

UM, MANY OF THESE ARE, YOU KNOW, AGAIN, THEY LIMIT WITH WHAT WE CAN AND CAN'T DO, AND WE BUILD ALL THAT INTO OUR SOPS AND OUR POLICY MANUALS.

NOW WE'RE GONNA GET INTO WHAT IS MY FAVORITE PART, AND THIS IS HOW WE DO WHAT WE DO.

THE OPTIONS FOR PROCURING GENERAL GOODS AND SERVICES IS VERY MUCH GUIDED BASED ON THE DOLLAR VALUE OF THE CONTRACT.

AND AGAIN, THESE ARE CONTRACTS THAT ARE NOT CONSTRUCTION FOR PURCHASES UP TO $3,000.

THERE'S NO COMPETITION REQUIRED AT ALL.

UM, DEPARTMENTS CAN JUST GO SELECT A VENDOR AND MAKE PURCHASES, BUT AGAIN, THAT'S ONLY UP TO $3,000.

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AND THAT'S FROM 3000 TO 78,000.

AND AT THIS POINT IN TIME, AN INVITATION FOR QUOTE PROCESS IS USED.

WE HAVE TWO METHODS FOR THESE PURCHASES.

OUR PREFERRED PROCESS WHEN POSSIBLE IS, UM, IT'S ACTUALLY SOMETHING NEW WE'VE STARTED ABOUT A YEAR AND A HALF AGO, IS WE SEND THE INITIAL NOTICES THROUGH OUR SYSTEM ONLY TO CERTIFIED SMALL BUSINESSES, OF WHICH EVERY MWBE COMPANY QUALIFIES IN THE CITY BECAUSE THEY ALL HAVE TO MEET THE SMALL SIZE STANDARD.

UM, AS LONG AS THERE'S THREE OR MORE, UH, SIGNED UP FOR THAT COMMODITY CODE, AT THAT POINT IN TIME, WE SEND IT ONLY TO THOSE VENDORS.

AND AS LONG AS WE RECEIVE THREE QUOTES BACK, WE WILL AWARD THEN AND NEVER SEND IT OUT TO EVERYONE ELSE.

IF WE DON'T GET THREE QUOTES BACK, WHICH IS WHAT'S KIND OF REQUIRED IN US IN ORDER FOR US TO PROVE COMPETITION, THEN WE'LL SEND IT TO EVERYONE ELSE AND AWARD THAT WAY.

UM, IN THOSE INSTANCES WHERE WE MAY NOT HAVE THREE SMALL CERTIFIED FIRMS UNDER THAT COMMODITY CODE, AT THAT POINT IN TIME, THE DEPARTMENTS CAN JUST MANUALLY REACH OUT.

UM, THEY, THEY USUALLY DO IT THROUGH EMAIL TO SEVERAL VENDORS.

UM, I WILL NOTE THAT STATUTE REQUIRES THAT EVEN IN THAT CASE, THEY HAVE TO REQUIRE, THEY HAVE TO CONTACT A MINIMUM OF TWO HUBS DURING THAT PROCESS.

AGAIN, WHICH EVERY MWBE FIRM IN AUSTIN QUALIFIES FOR.

UM, FOR PURCHASES OVER 78,000.

WE REQUIRE FORMAL COMPETITION.

AND THAT'S, I THINK WHERE, WHERE YOU GUYS SEE THINGS.

'CAUSE THAT'S WHEN IT REQUIRES COUNCIL APPROVAL AS WELL.

UM, THERE ARE MANY RULES THAT GUIDE HOW THESE ARE DONE.

THERE'S THREE MAIN TYPES OF PROCUREMENTS THAT FALL UNDER THIS UMBRELLA.

THE FIRST IS AN INVITATION FOR BID.

AND THIS IS WHERE THE DEPARTMENT WILL CLEARLY IDENTIFY EXACTLY WHAT THEY NEED TO PROCURE THROUGH A SCOPE OF WORK OR A SPECIFICATION.

UM, WE CAN SET MINIMUM QUALIFICATIONS AND STANDARDS IN ORDER SO THAT, YOU KNOW, TO SET SOME, YOU DON'T WANT JUST ANYBODY COMING AND AWARDING BASED ON LOW BID WHO CAN'T MEET SPECIFIC REQUIREMENTS.

UM, THE REASON AN INVITATION FOR BID CAN WORK IS BECAUSE WE CAN SET VERY CLEAR EXPECTATIONS, UH, CERTIFICATIONS, LICENSES, EXPERIENCE, AND THEN IT MOVED FORWARD TO AWARD JUST BASED ON THE LOW PRICE OF WHOEVER MEETS THOSE REQUIREMENTS.

THE NEXT ONE IS A REQUEST FOR A PROPOSAL.

THIS IS GENERALLY USED IF A DEPARTMENT KNOWS WHAT THEY WANT THE END RESULT TO BE, BUT THEY'RE NOT EXACTLY SURE OR NOT SET IN STONE HOW TO GET THERE.

IN WHICH CASE WE ASK FOR PROPOSALS FROM, UH, CONTRACTORS OUT THERE AND THEY KIND OF TELL US THEIR BEST IDEAS TO, UH, GET TO OUR END GOAL AND LIKE SOLVE THE, UH, PROBLEM IF WE HAVE ONE.

UM, THIS, IN THIS CASE, RATHER THAN JUST PRICE, WE ACTUALLY EVALUATE IT WITH POINTS BASED ON THINGS LIKE WHAT THEIR PROPOSED SOLUTION IS, THEIR QUALIFICATIONS, THEIR EXPERIENCE, UM, PRICE, UM, AND AND OTHER THINGS JUST TO, TO KIND OF DETERMINE THE BEST VALUE FOR THE CITY.

THE LAST, UM, ONE ITEM THAT WE USE IS REQUEST FOR QUALIFICATIONS.

AND I'M, YOU GUYS ARE PROBABLY FAMILIAR WITH THAT, BUT THAT'S MAINLY FOR PROFESSIONAL SERVICES, IN WHICH CASE WE ASK FOR OFFERS TO PROVIDE ONLY THEIR EXPERIENCE AND QUALIFICATIONS.

AND THEN THE AWARD IS MADE, IS MADE BASED PURELY ON THOSE EXPERIENCE AND QUALIFICATIONS.

ONCE THE MOST QUALIFIED FIRM IS IDENTIFIED, THEN WE WILL NEGOTIATE PRICING, UM, AS WELL AS THE SCOPE OF WORK AND, AND OTHER ITEMS THAT WILL BE PART OF THE CONTRACT.

ALRIGHT.

UM, THERE'S ALSO SEVERAL PROJECT DELIVERY METHODS THAT ARE USED FOR THE CONSTRUCTION PROJECTS.

THESE USE THE SAME ACTUAL PROCESSES, GENERAL PROCUREMENTS, THE REQUEST FOR PROPOSAL, THE INVITATION FOR BID, REQUEST FOR QUALIFICATIONS, UM, BUT WITH SOME SMALL DIFFERENCES.

BUT THE BASIC CONCEPTS ON THE METHODOLOGIES ARE THE SAME.

UM, THE FIRST OF THESE DELIVERY METHODS IS THE DESIGN BID BUILD.

AND THIS METHOD, A DESIGN FIRM IS SELECTED FIRST TO COMPLETE THE DESIGN, AND THEN AFTER WE HAVE A COMPLETE DESIGN, WE THEN SOLICIT A CONTRACTOR FOR THE CONSTRUCTION OF THE DESIGN.

SO IT'S KIND OF DONE, WE FINISH ONE, AND THEN YOU MOVE TO THE NEXT.

THE NEXT METHOD IS THE CONSTRUCTION MANAGER AT RISK.

THIS METHOD STILL HAS TWO CONTRACTS, ONE FOR DESIGN AND ANOTHER FOR CONSTRUCTION.

BUT IN THIS INSTANCE, THE CONSTRUCTION CONTRACTOR IS BROUGHT IN EARLY IN THE DESIGN AFTER SELECTION OF THE DESIGN FIRM, BUT PRIOR TO THE COMPLETION OF THE CONCEPTUAL STAGE OF DESIGN, WHICH IS USUALLY BETWEEN ZERO AND 30% OF DESIGN, SO THAT THEY CAN WORK IN TANDEM WITH A DESIGNER AS THE DESIGNS ARE COMPLETED.

AND IN THIS INSTANCE, RATHER THAN PROVIDING JUST A LUMP SUM PRICING, IT'S PROVIDED AT THE, AT, IN THE, FOR THE CONSTRUCTION AT PHASES.

UM, SO THAT IT, IT KIND OF LIKE, AS THE DESIGN HAPPENS, THEN WE HAVE SOME PACKAGES FOR CONSTRUCTION, WHICH ARE PRICED ALONG THE WAY.

AND THE LAST METHOD IS THE DESIGN BUILD.

IN THIS METHOD, WE SELECT A SINGLE CONTRACTOR FOR BOTH THE DESIGN AND THE CONSTRUCTION THROUGH THE SAME CONTRACT.

THIS ALLOWS ONE CONTRACTOR TO BE RESPONSIBLE FOR BOTH THE DESIGN AND THE CONSTRUCTION.

NOW WE DO HAVE SOME EXEMPTIONS FROM COMPETITION THAT ARE ALLOWABLE, UM, IN STATE STATUTE.

UM, THESE ARE VERY, UH, NARROWLY LIMITED.

UM, SOLE SOURCE OBVIOUSLY IS SOMETHING WE CAN, YOU CAN ONLY GET FROM ONE PLACE.

UM, I WILL NOTE THAT WE ARE VERY PARTICULAR ON THESE AND JUST BECAUSE A, THERE IS A SOFTWARE THAT OBVIOUSLY ONLY ONE COMPANY CAN OFFER IF

[00:35:01]

UM, WE ALSO DO PROFESSIONAL SERVICES AND, UH, WE HAVE AN EXEMPTION ALLOWABLE FOR EMERGENCIES, WHICH ARE NEEDED TO PROTECT PUBLIC HEALTH AND SAFETY.

UM, ANOTHER ITEM THAT WE, UH, ARE ABLE TO WAIVE COMPETITION IN GENERAL IS BY USING COOPERATIVE CONTRACTS.

THESE ARE CONTRACTS WHICH ARE GENERALLY HAVE ALREADY BEEN COMPETED BY OTHER GOVERNMENT AGENCIES, UM, OFTEN THAT HAVE BIGGER BUYER BUYING POWER.

THE BUS BIGGEST EXAMPLE OF THIS IS A DIR.

WE PURCHASE A LOT OF IT THROUGH THERE.

WE LEVERAGE THE BUYING POWER OF THE STATE AND ARE ABLE TO COME UP WITH, UM, TERMS AND CONDITIONS AS WELL AS PRICING THAT ARE BETTER, UM, THAN WE COULD DO ON OUR OWN BASED ON THE VOLUME THAT WE HAVE JUST IN AUSTIN.

UM, BUT AGAIN, JUST SO YOU KNOW, EVEN IN THESE CASES WITH COOPERATIVES, WE OFTEN WILL GO AHEAD AND DO A, UH, INFORMAL COMPETITION WITHIN, FROM DIFFERENT VENDORS WITHIN THAT COOPERATIVE TO ENSURE THAT WE'RE GETTING THE BEST VALUE FOR THE CITY.

SO WE DON'T JUST GO PICK ONE AND SAY, OKAY, YOU'RE UNDER COOPERATIVE, SO WE'RE GONNA USE YOU.

UM, WE ALSO HAVE SOME POLICIES WHICH DIRECTLY, UM, IMPACT PROCUREMENT AND I'M JUST GONNA GO OVER A COUPLE, UM, 'CAUSE I KNOW THEY'RE ONES THAT YOU PROBABLY HEAR A LOT ABOUT.

AND THE FIRST IS THE NO LOBBYING.

UM, THAT ONE, UH, THAT'S A, UH, RESOLUTION THAT COUNCIL PASSED.

AND THE BASIC IDEA BEHIND IT IS TO TRY TO, UM, LEVEL THE PLAYING FIELD FOR ALL, UM, EVERYBODY WHO WANTS TO DO BUSINESS WITH THE CITY.

BY LIMITING THE CONTACT THROUGH ONE OR TWO, UH, CITY STAFF, WE DO OUR BEST TO ENSURE THAT ALL INFORMATION THAT IS SHARED WITH ONE VENDOR IS SHARED WITH ALL.

SO, FOR EXAMPLE, IF WE GET A QUESTION FROM A VENDOR ON A PROCUREMENT RATHER THAN JUST ANSWERING IT TO THAT ONE VENDOR, WE ENSURE THAT EVERYONE ELSE GETS THAT SAME INFORMATION.

AND SO THAT IS, IS A KEY POINT.

IT ALSO, AS YOU CAN IMAGINE, UM, HOPEFULLY HAS SOME PROTECTION FOR YOU ALL AS WELL AS FOR COUNCIL.

UM, WHEN SOME OF THESE FIRMS, UM, HAVE HAVE PRETTY STRONG LOBBYING EFFORTS.

UM, AS YOU SEE, SEE BEFORE, UH, A LOT OF OUR SOLICITATION PROCESSES, WE HAVE NO CHOICE.

IF WE DO AN INVITATION FOR BID, IT HAS TO BE BASED ON LOW BID.

AND SO AGAIN, UM, IT, IT JUST KIND OF KEEPS YOU PEOPLE FROM A LOT OF CITY PERSONNEL FROM GETTING A LOT OF PHONE CALLS, ET CETERA, UM, ASKING FOR SPECIAL FAVORS, ET CETERA.

SO IT'S USED FOR THAT.

UM, THE NEXT ONE IS, UH, OUR MWBE PROGRAM.

AND AS I KNOW, YOU KNOW, THAT'S FROM A DIFFERENT DEPARTMENT, BUT IT DEFINITELY AFFECTS OUR PROCUREMENTS.

UM, IT APPLIES TO EVERY CONTRACT THAT WE DO OVER $50,000.

UM, WE SEND ALL, UH, SCOPES OF WORK AND SPECIFICATIONS AND TRADE SUMMARIES FOR EVERY CONTRACT WE DO OVER 50,000 THROUGH A-A-S-M-B-R FOR THEM TO REVIEW TO DETERMINE IF GOALS ARE APPROPRIATE.

UM, I WILL NOTE THAT THE ORDINANCE DOES HAVE SOME VERY SPECIFIC, UM, AND SMALL EXEMPTIONS.

THE MAIN ONE BEING SOLE SOURCE CONTRACTS.

UM, WE CAN'T REALLY APPLY GOALS TO A CONTRACT THAT ONLY ONE, UH, COMPANY IS ABLE, HAS THE ABILITY TO DO.

AND THE LAST ONE THAT I WANNA TOUCH ON IS ONE THAT I'M REALLY PROUD OF, AND IT'S ONE THAT WE ROLLED OUT PROBABLY AN HOUR AND A HALF AGO.

UH, I TOUCHED ON THE QUOTE THING, BUT WE ACTUALLY HAVE, UM, UH, GREATLY ENHANCED OUR SMALL BUSINESS PREFERENCE PROGRAM IN THE LAST COUPLE YEARS.

UM, I TALKED ABOUT THE INVITATION FOR QUOTE, WHERE WE BASICALLY GIVE CERTI SMALL CERTIFIED FIRMS, UH, KIND OF A BITE AT THE APPLE FIRST BEFORE WE GIVE IT OUT TO EVERYONE ELSE.

UM, WE ALSO, ON OUR INVITATIONS FOR BIDS, WE ALLOW UP TO A 5% BID DISCOUNT FOR A SMALL BUSINESS, WHICH BASICALLY MEANS THEY CAN, THEY CAN BID ABOUT 5% MORE THAN ANOTHER CONTRACTOR.

AND WE WOULD STILL RECOMMEND AWARD TO THAT COMPANY RATHER THAN A COMPANY WHO IS NOT SMALL.

AND ON OUR REQUEST FOR PROPOSALS, WE ALLOW UP TO 10% OF POINTS, WHICH IS 10 POINTS OUT OF THE A HUNDRED THAT ARE NORMALLY AVAILABLE, UM, FOR A COMPANY FOR BEING A SMALL CERTIFIED BUSINESS.

SO I KNOW I WENT THROUGH THIS PRETTY QUICK, BUT, UH, JUST HIGH LEVEL, THAT'S KIND OF HOW WE'RE BUYING WHAT, UM, AVIATION IS USING.

THANK YOU.

THANK YOU MR. WELDER FOR YOUR PRESENTATION.

UH, COMMENTS, QUESTIONS, MS. CHRIS OR ANDREW? UM, I HAVE A COUPLE OF, UH, CLARIFICATION OR QUESTIONS ON CLARIFICATION.

UM, EARLIER, UM, IN YOUR PRESENTATION, UM, UH, YOU HAD TALKED ABOUT CONTRACTOR EVALUATION ON PREVIOUS PROJECTS AND STUFF LIKE THAT.

UM, IS IT, DO WE HAVE ACCESS TO LOOK AT THOSE? UM, I BELIEVE THAT THE CONTRACTOR PERFORMANCE EVALUATION SCORES, WE ONLY DO THAT FOR CONSTRUCTION, BUT I, I BELIEVE THEY'RE PUBLIC, BUT I CAN, I'LL FIND THAT IN FOLLOW UP WITH YOU.

OKAY.

I'LL LET YOU KNOW.

UM, YOU MENTIONED, UM, SO YOU HAVE A LIST OF CERTIFIED VENDORS THROUGH THE CITY OF AUSTIN ON THIS KIND OF STUFF.

DO YOU GUYS, UM, DO ADVERTISING OUTSIDE OF THAT OR DO, DO, DO COMPANIES JUST HAVE TO KNOW TO GO DO OUR WEBSITE TO FILL OUT, UM, APPLICATION TO BE CERTIFIED? YEAH.

UM, WELL, THE CERTIFICATION FOR, ARE YOU TALKING ABOUT SMALL CERTIFIED OR JUST DOING BUSINESS WITH THE CITY? UH, DOING, I MEAN SMALL CERTIFIED OR DOING BUS BUSINESS WITH THE CITY.

OKAY.

THE, THE SMALL MWB PROGRAM IS, IS DONE BY OUR, UH, THE SMBR, THE A-S-M-B-R, NOW, THEIR NEW NAME.

UM, SO THEY HANDLE ALL THAT AND SO I KNOW THEY DO SIGNIFICANT OUTREACH, BUT THEY WOULD BE BEST TO SPEAK TO THAT.

AS FAR AS JUST GENERALLY WORKING FOR THE CITY, OBVIOUSLY ANY ENTITY OR AGENCY WHO'S, UH, CERTIFIED BY SMBR AS A SMALLER MINORITY OWNED BUSINESS IS AUTOMATICALLY REGISTERED, UM, TO GET NOTIFICATIONS.

ANYTIME WE ISSUE A SOLICITATION, UM, OTHER

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AND THEN AFTER, AFTER THAT, ANYTIME WE ISSUE A SOLICITATION FOR THOSE ITEMS, THEY'RE AUTOMATICALLY NOTIFIED.

I HAVE A FOLLOW UP QUESTION.

UM, DO, UM, SO SOMETIMES CONTRACTORS, UM, IT'S HARD, IT'S DIFFICULT I'VE HEARD TO FILL OUT THAT STUFF.

IS THERE ANY KIND OF RESOURCE FOR ASSISTANCE ON FILLING OUT, UM, THAT PAPERWORK? YEAH, I MEAN, I KNOW FOR CERTIFIED FIRMS, UM, A-S-M-B-R OFFERS ASSISTANCE, BUT I, I WILL TELL YOU THAT AT LEAST TWO OR THREE TIMES A WEEK I HAVE A VENDOR REACH OUT TO MYSELF OR ONE OF MY TEAM AND WE'RE HAPPY TO HELP THEM.

OKAY.

AND SO IF ANYBODY REACHES OUT TO YOU AND THEY'RE HAVING A HARD TIME, PLEASE UM, FEEL FREE TO GIVE THEM MY DIRECT INFORMATION.

I'M HAPPY TO HELP THEM.

OKAY.

I HAVE ONE LAST QUESTION.

UM, SO, UM, YOU HAD MENTIONED IN YOUR PRESENTATION ABOUT, UM, SOLICITATION GOES OUT AND, UM, LET'S SAY THAT, UM, YOU GET TWO OUTTA THREE OR YOU GET, LET'S SAY YOU GET NO ONE THAT BIDS ON IT.

WHAT IS THE PROCESS AFTER THAT? UM, IT ON, IT DEPENDS ON IF IT'S A QUOTE OR A FORMAL SOLICITATION.

UM, QUOTES.

WE JUST START PICKING UP THE PHONE AND CALL.

I MEAN, ANYBODY CAN PICK UP THE PHONE AND CALL.

'CAUSE WE DON'T HAVE THE NO LOBBYING ORDINANCE, UM, ON ANY FORMAL SOLICITATIONS.

UH, IT, WE HAVE A POLICY IN OUR PROCUREMENT MANUAL, WHICH STATES THAT IF WE, FIRST OF ALL, WE DON'T LET IT CLOSE WITH ZERO, AND IF IT HAS LESS THAN TWO, WE GENERALLY WILL EXTEND IT FOR A LONGER PERIOD OF TIME.

AND THAT PROCUREMENT STAFF'S RESPONSIBILITY IS TO REACH OUT TO, USUALLY THE, THE USING DEPARTMENTS MIGHT HAVE INFORMATION ON AGENCIES, OR I'M SORRY, VENDORS THAT CAN PROVIDE THAT.

AND WE PICK UP THE PHONE AND START MAKING PHONE CALLS SAYING, HEY, I JUST WANNA MAKE SURE YOU SAW THIS.

ARE YOU AWARE IT'S OUT THERE? AND IF THEY SAY THAT THEY'RE AWARE AND ARE NOT INTERESTED, WE TRY TO GATHER INFORMATION REGARDING WHY.

SO THAT, YOU KNOW, I CAN TELL YOU WE HAVE FOUND THAT, YOU KNOW, SOMETIMES OUR SCOPE COULD HAVE BEEN TOO TIGHT, OUR REQUIREMENTS DIDN'T MEET THE, THE NEEDS.

AND IF, IF WE'RE NOT GETTING ANY, THEN WE'LL GO BACK TO THE DEPARTMENT AND SAY, YOU KNOW, WE NEED TO STOP AND START OVER.

AND, AND THAT HAS HAPPENED.

HOW MANY, UM, CONTRACTORS ARE CERTIFIED ON THAT LIST CURRENTLY TO BID ON PROJECTS? DO YOU KNOW? UM, I DON'T KNOW.

I MEAN, WE LITERALLY, AS FAR AS ANY ONE NOT I, THE CERTIFIED ONES, I DON'T KNOW, WE HAVE OVER, I MEAN, I MEAN IT'S THOUSANDS OF OKAY.

CONTRACTORS THAT ARE, THAT ARE, UH, SIGNED UP TO DO BUSINESS WITH THE CITY.

OKAY.

ALL RIGHT.

THANK YOU.

THANK YOU.