* 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. [CALL TO ORDER] [00:00:02] GOOD AFTERNOON. THIS IS A REGULAR BOARD MEETING, UH, MEETING OF THE AIRPORT ADVISORY COMMISSION. UH, UH, THE TIME IS 3:01 PM WELCOME COMMISSIONERS AND STAFF. OKAY. THE FIRST ITEM ON THE, UH, UH, JASON, THERE'S NO PUBLIC COMMUNICATION, IS THAT CORRECT? CORRECT. OKAY, THANK YOU. [APPROVAL OF MINUTES] ALRIGHT, FIRST ITEM ON THE AGENDA IS ON PAGE FOUR IS APPROVAL OF THE MINIMUM, UH, MINUTES IS, UH, OF JUNE 10TH, 2026. IS THERE A MOTION? SO MOVED. THANKS. SECOND, WE HAVE A MOTION BY, UH, UH, COMMISSIONER ELLER AND A SECOND BY COMMISSIONER FONG. ANY COMMENTS, QUESTIONS? IF NOT ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND. THANK YOU. MOTION PASSES. YOU OLE. THANK YOU. ALL [2. Briefing on May 2026 Financial Results presented by Rajeev Thomas, Chief Financial Officer] RIGHT. NEXT ITEM ON OUR AGENDA IS, UH, STAFF, UH, BRIEFINGS. UH, FIRST ITEM, UH, NUMBER TWO IS ON PAGE NINE, A BRIEFING OF MAY, 2026, FINANCIAL RESULTS PRESENTED BY ANUPA, UH, THIS AFTERNOON. THANK YOU. GOOD AFTERNOON. UH, ANUPA GARRE, UH, AIRPORT DEPUTY CHIEF OF FINANCE, UM, HERE TALKING ABOUT THE, UH, MAY, 2026 FINANCIAL RESULTS. UM, SO FOR THE MONTH OF MAY, WE SAW AN INCREASE IN OUR, UM, FLIGHT ACTIVITY AND COMMERCIAL AIRLINES INCREASE THEIR DAILY DEPARTURES BY 3% TO 268. UH, WE SAW AN INCREASE IN OUR PASSENGER IN PLACEMENTS FOR THE MONTH OF MAY, UH, 3% INCREASE FOR THE MONTH OF MAY. AND FOR THE FISCAL YEAR EIGHT MONTH PERIOD, UH, THAT INCREASE WAS 5%. THE LANDED WEIGHTS ALSO INCREASED FOR THE MONTH OF MAY FOUR AND A HALF PERCENT. AND THEN FOR FISCAL YEAR, UM, WAS, THAT WAS ABOUT 7% INCREASE. ALL THE ACTIVITY INCREASE AND THE INCREASE IN THE RATES AND CHARGES LED TO INCREASE ON IN OUR AIRLINE REVENUES. SO FOR THE MONTH OF MAY, WE SAW, UH, AN INCREASE OF $6 MILLION IN, UM, AIRLINE REVENUE, WHICH IS 39% INCREASE YEAR OVER YEAR. AND, UM, $50 MILLION FOR THE FISCAL YEAR TO DATE FOR THE NON-AIR AIRLINE REVENUE IN EVERY CATEGORY OF OUR NON-AIR AIRLINE REVENUE. ALSO, WE SAW AN INCREASE FOR THE MONTH OF MAY. WE SAW A 6.1% INCREASE IN OUR NON-LINE REVENUE. THAT'S A LITTLE OVER $900,000. AND FOR THE FISCAL YEAR TO DATE, WHICH IS THE EIGHT MONTH PERIOD, $8.4 MILLION, UH, WHICH IS 7.6 MILLION, UM, INCREASE OVERALL, UH, OUR TOTAL REVENUE INCREASED, UM, UH, 7.2 MILLION FOR THE MONTH OF MAY. THAT'S A 23.3% INCREASE. AND FOR FISCAL YEAR TO DATE, THAT INCREASE WAS $59 MILLION, WHICH IS 25.7% INCREASE. SO HEALTHY INCREASE IN OUR REVENUES ON THE EXPENSE SIDE, UM, AS WE EXPECTED EXPENSES WILL INCREASE YEAR OVER YEAR. UH, FOR THE OPERATING EXPENSES, WE SAW AN INCREASE OF 7.4%. THIS INCREASE WAS MAINLY DUE TO THE GROWTH IN PERSONNEL COST BECAUSE OF THE WAGE INCREASES. UH, WE IMPROVED OUR VACANCY RATES. WE ALSO SAW ON THE CONTRACTUAL SIDE AN INCREASE IN OUR PREVENTATIVE MAINTENANCE COSTS. UTILITIES COST, UM, THIS TO BE EXPECTED. SO, UM, THERE WAS NOT SURPRISING. UH, TOTAL REQUIREMENTS INCREASED 5.3% FOR THE FISCAL YEAR TO DATE ON, FOR YEAR OVER YEAR. OUR NET INCOME, UH, FOR THE MONTH OF MAY INCREASED, UH, $7.5 MILLION. AND FOR THE FISCAL YEAR TO DATE, $49.5 MILLION, WHICH IS, UH, UH, ABOUT 94% INCREASE FROM THE PRIOR YEAR. COMPARING TO BUDGET, UM, KEEPING IT VERY HIGH LEVEL, UH, FISCAL YEAR TO DATE ON THE OPERATING REVENUE SIDE, OUR BUDGETS WERE, UH, THE OPERATING REVENUE WAS HIGHER BY EIGHT AND A HALF MILLION DOLLARS OVER BUDGET. SO WE DID DO BETTER THAN A BUDGETED, UH, REVENUES THAT IS 3.1% VERSUS, UM, CURRENT YEAR ESTIMATE IT, IT CAME, UH, WHAT WE EXPECT IT TO BE. SO IT WAS FLAT, APPROXIMATELY ON THE EXPENSE SIDE, YOU WILL SEE WE ARE, WE ARE UNDER BUDGET BY HALF A MILLION DOLLARS. UM, UH, AND THAT'S ABOUT 0.4%. AND UNDER CYE BY $1.6 MILLION, NET INCOME CAME OVER BUDGET, $9.7 MILLION FOR THE, FOR THE FISCAL YEAR TO DATE. UM, AND THAT'S ABOUT 10.6% INCREASE. AND VERSUS CY IT'S $1.2 MILLION. UM, SO THAT'S, THOSE ARE THE FINANCIAL RESULTS FOR MAY. I'M HAPPY TO ANSWER ANY QUESTIONS. THANK YOU FOR YOUR PRESENTATION. WE'LL OPEN UP, [00:05:01] UH, FOR COMMENTS OR QUESTIONS. OKAY. WELL, THANK YOU VERY MUCH. THANK YOU. ALRIGHT, NEXT ITEM [3. Briefing on July 2026 Air Service Update provided by Jamy Kazanoff, Air Service Development] ON OUR AGENDA IS ON PAGE 14, UH, BRIEFING OF JULY, 2026 AIR SERVICE UPDATE PROVIDED BY JAMIE KOFF, OUR AIR SERVICE, UH, DEVELOPMENT. AND, UH, JAMIE'S WITH US VIRTUALLY TODAY. WELCOME. YES, MA'AM. THANK YOU. THANK YOU, JAMIE KOFF. GOOD AFTERNOON COMMISSIONERS. DEPUTY CHIEF OF AIR SERVICE. I'M HAPPY TO REPORT THAT WE HAVE A HEALTHY JULY LOAD OF SEATS FOR SALE FOR OUR PASSENGERS. IF, UH, WE LOOK AT IT REAL HIGH LEVEL FOR THIS QUARTER, WE'RE UP 3.5% FOR THE QUARTER AND UP 7% FOR THE FOURTH QUARTER OF 2026. I CAN MENTION THAT AIRLINES SOMETIMES ADD MORE O OPPORTUNISTICALLY WHEN THEY'RE A LITTLE FURTHER AWAY AND THEY BEGIN TO TRIM SEATS AS WE GET CLOSER TO THOSE SEATS. SO, ALTHOUGH I'M DELIGHTED ABOUT A 7% AND QUARTER FOUR, THAT COULD MOVE DOWN A LITTLE BIT. JUST SO JUST KEEP THAT IN MIND. THAT'S BEEN THE TREND IN AUSTIN AND THROUGHOUT THE COUNTRY. I'M JUST GONNA GO OVER A FEW OTHER HIGHLIGHTS. JULY ITSELF, YEAR OVER YEAR IS UP 2%. THAT'S ON A BIG MONTH ALREADY, SO WE HAVE 2% MORE SEATS FOR SALE, WHICH COULD OF COURSE TRANSLATE INTO PASSENGERS AS IT DID SUCCESSFULLY IN MAY FOR US. WE DO NOT YET HAVE JUNE FIGURES. AMERICAN AIRLINES IS GOING TO HAVE EXTRA SEATS THIS YEAR OVER YEAR, 2.7%, NEARLY 3%. SO THAT'S GOOD TO SEE AMERICAN ACTUALLY UP A LITTLE BIT YEAR OVER YEAR. THAT'S UNCOMMON FOR US TO SEE HERE IN AUSTIN. A BRITISH AIRWAYS. A REMINDER THAT THE WINTER SEASON, WHICH IS COMING UP, IT'S THE IATA INTERNATIONAL AIR TRANSPORTATION ASSOCIATION SEASON THAT STARTS IN OCTOBER. UH, BA IS CURRENTLY AT DOUBLE DAILY AND IT GOES TO ONCE A DAY, OCTOBER 25TH TO MARCH 27TH CAME ON. THEY DID GO AHEAD AND FALL FOR THEIR FLIGHTS FOR NEXT SEASON. AND I BELIEVE THESE ARE ON SALE FROM MAY 30TH. SO THAT'S A TESTAMENT TO, UH, A SUCCESSFUL SUMMER 2026. AND THANK YOU FOR YOUR SUPPORT ON THAT NEW CARRIER. UM, I ALSO WANNA HIGHLIGHT SOME DELTA ITEMS. DELTA ADDED THE NERD BIRD, WHICH, UH, STARTS OCTOBER 6TH TO SAN JOSE. THAT'S GOTTEN A LOT OF PUBLICITY AND A LOT OF BUSINESS, UH, CHATTER. DELIGHTED TO SEE THAT. UM, THEY DID BACK DOWN A LITTLE BIT ON MEMPHIS AND NEW ORLEANS WILL BE DISCONTINUED. AND THEIR LAST OPERATIONS ARE OCTOBER 5TH. NOT ON THIS REPORT, WHICH CAME AFTER IT WAS, UH, AFTER I HAD SUBMITTED IT WAS DELTA ANNOUNCING FORT MYERS, FLORIDA. THIS IS A NEW SEASONAL ROUTE FOR DELTA. THEY WILL BE JOINING SOUTHWEST AIRLINES ON THAT ROUTE. DELTA WILL START THAT FLIGHT NOVEMBER 21ST AND RUN IT UNTIL APRIL 10TH, AND IT'S SATURDAY ONLY. BUT THIS IS AN EXAMPLE OF A CARRIER WATCHING US CLOSELY AND SEEING WHERE THERE'S BENEFIT TO ADD SOME LEISURE ROUTES AS WELL. SO, THANK YOU DELTA FOR THAT ADDITION. AND THAT WILL BE ON THE NEXT REPORT, PORTER, WHICH IS OUR NEWEST, UH, CARRIER TWO. IN ADDITION, IT CAME ON, THEY STARTED SERVICE MAY 21ST, AND THEY'VE ALERTED US THAT THEY WILL BE SERVING AUSTIN YEAR ROUND, NOT JUST SEASONALLY, BUT YEAR ROUND. SO THAT'S, UM, GOOD TO HEAR. THAT MEANS THAT'S A STRONG, UM, OR AT LEAST IT MET EXPECTATIONS FOR PORTER SOUTHWEST, IS THAT IT'S A RECORD BREAKING NUMBER OF DAILY DEPARTURES IN AUSTIN, AND THEY'RE LOADED OUT ALL THE WAY UNTIL MARCH 10TH, 2027, YEAR OVER YEAR, THOUGH THAT IS RECORD BREAKING FOR SOUTHWEST. UH, OVERALL, WE'VE GOT THE NEW DESTINATIONS JULY 26TH. WE HAVE BOZEMAN, KALISPELL, GRAND CAMAN, AND OMAHA, WHICH WE DIDN'T HAVE LAST YEAR. AND WE ARE MINUS CLEVELAND AND PORT OF VALLARTA. PORT OF VALLARTA IS STILL SUSPENDED BY SOUTHWEST UNTIL AT LEAST NOVEMBER 21ST. I'M NOT, I DON'T HAVE AN, UH, A GOOD ANSWER FOR YOU ON WHEN WE MAY GET PORT OF VALLARTA BACK. UM, LET'S SEE, WHAT ELSE DID I WANNA SHOW? I JUST WANNA BRING YOUR ATTENTION TO THE, THE ONE-WAY DOMESTIC FARES THAT ARE ON THE FOLLOWING PAGE. I DON'T KNOW IF YOU'RE ABLE TO SEE IT. WE HAVE FALLEN BELOW THE US AVERAGE FARES, WHICH IS, THIS IS ONE TIME YOU WANNA BE BELOW, YOU WANNA BE BELOW THE US AVERAGE FAIR. THE, FOR THE LAST YEAR, YEAR AND A HALF, I'VE BEEN PRESENTING TO YOU THAT WE'VE BEEN ABOVE THE US AVERAGE FAIR, NOT BY MUCH, AND WE'RE NOT MUCH BELOW, [00:10:01] BUT I LIKE BEING BELOW THE AVERAGE FAIR. THIS MEANS THAT WE HAVE COMPETITIVE FAIRES IN OUR MARKET, AND, UM, I'M GLAD TO SEE THEM. UM, OVERALL, I'M, I FEEL LIKE ALL THINGS VOTING WELL FOR AUSTIN, FOR OUR JULY, WITH OUR CUSTOMER RESPONSE THOUGH, WILL BE THE PROOF OF THE PUDDING. WHETHER OR NOT THEY'LL BE FLYING AT THE LEVELS THAT I HOPE THEY WILL BE, WE DO HAVE THE SEATS FOR THEM. THANK YOU. THANK YOU FOR YOUR PRESENTATION. WE'LL OPEN UP FOR ANY COMMENTS OR QUESTIONS. UH, UH, UH, COMMISSIONER, UM, CHU UH, JAMIE, UH, IS IT TRUE THAT DELTA IS DOING A NONSTOP BETWEEN, OR PLANNING TO DO BETWEEN PARIS AND AUSTIN? WE'VE SEEN THAT RUMOR THAT WAS, UH, PUT OUT BY A BLOGGER AND PICKED UP BY A FEW MEDIA OUTLETS. THAT'S NOT OFFICIAL BY DELTA. I CAN TELL YOU COMMISSIONERS THAT WE ARE WORKING ON NONSTOP PARIS. SO, UM, I DON'T HAVE AN ANNOUNCEMENT FOR YOU, BUT EITHER AIR FRANCE OR DELTA COULD FLY THAT ROUTE FOR AUSTIN, AND WE HAVE A VERY STRONG BUSINESS CASE, BUT NO ANNOUNCEMENT. THANK YOU. THANK YOU. ANY OTHER COMMENTS, QUESTIONS? OKAY. THANK YOU MS CA, UH, KASAL FOR THE PRESENTATION. THANK YOU. THANK YOU. APPRECIATE Y'ALL. OKAY, NEXT [4. Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer] ITEM ON THE AGENDA IS PAGE 23, UH, BRIEFING ON, UH, WELL, WELL ACTUALLY THE BRIEFING ON JOURNEY WITH A US, UH, A DP CAPITAL IMPROVEMENTS PROGRAM, UH, ACTIVE PROJECTS. WE'RE NOT DOING A PRESENTATION, UH, THIS THIS AFTERNOON. UH, IF YOU HAVE ANY OTHER COMMENTS OR QUESTIONS, PLEASE SEND THOSE TO JASON AND HE CAN, UM, FOLLOW UP ON THOSE. SO WE'LL HAVE EM AT THE AUGUST, UH, BOARD MEETING. OKAY, THANK YOU. ALRIGHT, [5. Discussion and possible action to approve the Airport Advisory Commission annual goals covering the period between July 1, 2026 through June 30, 2027. ] THE NEXT ITEM ON OUR AGENDA IS, IS, UH, ITEM NUMBER FIVE. THIS IS, UH, UH, IT WAS A HANDOUT THAT WAS, UH, THAT WAS, UH, EMAILED TO YOU. IT'S A DISCUSSION AND POSSIBLE POSSIBLE ACTION TO PROVE THE AIRPORT ADVISORY COMMISSION ANNUAL GOALS, UH, COVERING THE PERIOD BETWEEN JULY 1ST, 2026 THROUGH JUNE 30TH, 2027. UH, AS WE DO THESE DISCUSSION AND ACTION ITEMS, WE'LL DO A MOTION AND THEN A SECOND, AND THEN WE'LL HAVE DISCUSSION. SO ON ITEM NUMBER FIVE, IS THERE A MOTION? THANK YOU. UH, P FS MADE, UH, MOTION. IS THERE A SECOND, LYNN? THANK YOU. LYNN HENDRICKS, COMMISSIONER. ALL RIGHT. OKAY. WE'LL NOW, UH, OPEN THIS, UH, UP FOR DISCUSSION. WE'RE GONNA LET, UH, JASON ALEXANDER, CAN YOU PLEASE, UH, GIVE US A QUICK UPDATE AND ON THIS, UH, ITEM, HAPPY TO, UH, COMMISSIONERS JASON ALEXANDER. GOOD AFTERNOON. UH, DEPUTY CHIEF OF AIRPORT AFFAIRS. UH, WHAT WE'VE INCLUDED IN BACKUP ARE THE 12 GOALS THAT THIS GROUP APPROVED FOR THEMSELVES. LAST YEAR, THIS WAS THE, UM, 20 25, 20 26 REPORTING PERIOD. UM, WE THOUGHT THAT THAT WOULD OFFER A NICE, UH, PLATFORM TO START TODAY'S DISCUSSION. UM, AND AS I MENTIONED IN OUR PREVIOUS MEETING, THESE ARE GOALS THAT THE COMMISSION, UH, DOES ANNUALLY. IT'S SOMETHING THAT THEY SET FOR THEMSELVES. UM, WE'VE ALWAYS INTENDED FOR THEM TO BE PRETTY HIGH LEVEL, BUT IT IS REALLY A TOOL FOR THE COMMISSION TO KIND OF, UH, CHECK ITS OWN HOMEWORK, IF YOU WILL. UM, SO ANYWAY, UH, WE HAVE BROUGHT BACK LAST YEAR'S. AGAIN, JUST THINK THAT WOULD BE A GOOD PLACE TO START THE CONVERSATION. WE CAN EITHER PASS THESE AGAIN AS IS, OR YOU ARE FREE TO AMEND, EDIT, OR CHANGE AS YOU SEE FIT. THANK YOU, MR. ALEXANDER. OKAY. WE'RE GONNA OPEN UP FOR COMMENTS AND QUESTIONS ON THESE, UH, 12 ITEMS. UH, WE'LL OPEN UP FOR DISCUSSION. COMMISSIONER TRIMBLE. THANK YOU, CHAIR. UM, AND I THINK, UH, THE GOALS OVERALL I THINK LOOK GOOD. AND I STILL THINK THEY MAKE, MAKE A LOT OF SENSE. UM, I DO HAVE A FRIENDLY AMENDMENT TO OFFER, UM, AND THIS IS FOR THE LAST, UH, BULLET, THE ENHANCED MULTIMODAL CONNECTIVITY TO AND FROM A US. UH, WHAT I'D LIKE TO DO IS A AMEND THAT TO SAY ENHANCE MULTIMODAL CONNECTIVITY TO AND FROM A US WITH A PRIORITY ON TRANSIT CONNECTIVITY. AND REASON BEING IS BECAUSE I KNOW, UM, PRIMARILY FOLKS, YOU KNOW, DRIVE TO PARK, UH, USE RIDESHARE TO GET TO THE AIRPORT. I KNOW WE'RE BUILDING SOME NEW, UH, PARKING FACILITIES, WHICH IS GREAT. UM, BUT I'M NOT SURE WE'RE EVER GONNA BE ABLE TO, TO MEET THE, THE NEED AND THE CAPACITY THAT WE'RE GONNA NEED OVERALL, ESPECIALLY FOR THE LONG TERM. AND I THINK LOOKING AT THOSE OTHER MODES PARTICULARLY, UM, I THINK TRANSIT IS PROBABLY THE MOST REALISTIC TO LOOK AT. AND I KNOW THERE'S DIFFERENT, UH, THINGS THAT ARE GOING ON ALSO, UM, FROM DIFFERENT AGENCIES. AND I THINK JUST HAVING THAT AS A CONTINUED FOCUS FOR US, UH, TO WORK WITH THOSE AGENCIES AND SEE WHAT THOSE OPPORTUNITIES ARE, UH, IN THE FUTURE TO IMPROVE TRANSIT CONNECTIVITY. THANK YOU, COMMISSIONER TRIMBLE. ANYBODY HAVE ANY COMMENTS REGARDING THAT [00:15:01] FRIENDLY AMENDMENT? OKAY, THANK YOU. WITH NO OBJECTIONS, WE'LL ADD THAT TO THE CURRENT MOTION. OKAY. THANK YOU. ANY OTHER COMMENTS OR QUESTIONS ON THESE 12 ITEMS? COMMISSIONER CHU? SO FOR THE FIRST GOAL, UH, I DON'T KNOW IF IT'S AMENDMENT OR I'D JUST LIKE TO HEAR PEOPLE'S THOUGHTS, BUT, UH, THERE'S A CONTINUATION OF SOMETHING I BROUGHT UP LAST MEETING, WHICH IS, UH, TO CONSIDER ENCOURAGING A CONCISE DASHBOARD, A DASHBOARD. AND THIS AGAIN, WAS WITH THE, WITH THE FIRST GOAL IN MIND, HIGHLIGHTING THE KEY INDICATORS SUCH AS SCHEDULE, BUDGET, RESILIENCE, THE OVERALL PROGRAM HEALTH. AND I BELIEVE THAT TO HELP THE COMMISSION FULFILL ITS OVERSIGHT RESPONSIBILITIES, ITS ACCOUNTABILITY ALSO TO, TO, TO THE CITIZENS THAT, UM, IF WE HAVE SUCH A DASHBOARD, WHICH IS ALSO A MATTER OF PUBLIC RECORD, THAT THIS WILL, UM, SHOW THAT WE'VE FULFILLED OUR OVERSIGHT RESPONSIBILITIES. AND I DON'T BELIEVE IT WILL REQUIRE MUCH STAFF WORK, BECAUSE I THINK STAFF HAS A LOT OF DETAIL THAT THEY DISCUSS AMONGST THEMSELVES. AND AGAIN, UH, I THINK THE GENERAL PUBLIC IS LOOKING FOR US TO ALSO, UH, AS A COMMISSION, BOTH IN ADVICE, BUT ALSO AT LEAST AT THE BIG PICTURE, UH, BE ABLE TO, TO BE ACCOUNTABLE, UH, IF ASKED. AND I THINK THE, THE, UH, DASHBOARD WOULD BE USEFUL. ANY COMMENTS ON COMMISSIONER CHU'S REQUEST? UH, COMMISSIONER CHU, I, I, I, UH, TOTALLY UNDERSTAND WHAT YOU'RE SAYING THERE, AND, AND I BELIEVE THAT THERE PROBABLY IS SOME TOOLS THAT COULD BE USED THERE. I'M WONDERING, SINCE THIS IS MORE OF A OVER OVERARCHING GOALS, UH, I KIND OF SEE THAT A LITTLE MORE OPERATIONAL, WOULD IT BE, UH, UH, UH, AN IDEA MIGHT BE IS THAT MAYBE THE, UH, THE, UH, OFFICERS COULD WORK WITH YOU AND THEN JASON TO DISCUSS THIS FOR A FUTURE, UH, ITEM? IS THAT AGREEABLE? THAT I THINK THAT'S FINE. I THINK I JUST, YOU KNOW, I RAISE IT BECAUSE I THINK, UH, RESPECTFULLY, A MORE INFORMED COMMISSIONER, UH, CAN DO A BETTER JOB TO KEEP THE CITY COUNCIL INFORMED. SO IF, UM, WE COULD WORK ON IT AND THEN COME BACK TO THE OVERALL COMMISSION WITH, YOU KNOW, SOMETHING INCLUDING, UH, WHETHER IT BE IN THE GOALS OR JUST BE PART OF THE REPORTING PACK, THAT WOULD BE FINE. WELL, THANK YOU, COMMISSIONER. CHIEF. LET'S, IF WE COULD DO THAT, WE WILL WORK ON THAT FOR A FUTURE AGENDA ITEM, BUT THE OFFICERS WILL WORK WITH JASON AND YOURSELF, KIND OF THINK ABOUT HOW THAT MIGHT LOOK AND WHAT IT COULD BE SO WE COULD BRING MORE OF A CONCISE OVERALL VIEW OF WHAT THAT MIGHT LOOK LIKE TO THE COMMISSION. THAT WOULD BE GREAT. THANK YOU. WELL, THANK YOU SO MUCH. ANY OTHER COMMENTS OR QUESTIONS REGARDING THE GOALS? OKAY. UH, WE DO HAVE A MOTION AND A SECOND. ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND. MOTION PASSES UNANIMOUSLY. THANK YOU, COMMISSIONERS. OKAY. [6. Authorize negotiation and execution of a lease with Southwest Airlines Co. for certain premises consisting of approximately 18,601 square feet of building space, 13,418 square feet of cargo handling space, and related improvements for its receiving, storing and inventorying aircraft supplies and other provisioning operations for support of its airline operations at Austin-Bergstrom International Airport, for a term of five years, commencing after the date of beneficial occupancy, and with a renewal option for one additional five-year term. Funding: This item is projected to result in $3,038.16 of revenue for the Fiscal Year 2025-2026 Austin Aviation Operating Budget, which is two months’ ground rent during the construction of tenant improvements. The full rental rate will begin in Fiscal Year 2026-2027 after construction is complete.] UH, THE NEXT ITEM ON THE AGENDA IS ITEM NUMBER SIX. IT'S ON PAGE 49, UH, OR, UH, PRESENTER. UH, TODAY IS, UH, JOHN GALLO, AND THE ITEM IS, UM, SIX, RIGHT? YEP. OKAY. UH, AUTHORIZED NEGOTIATION EXECUTION OF A LEASE WITH SOUTHWEST AIRLINES COMPANY FOR CERTAIN PREMISES CONSISTING APPROXIMATELY 18,601 SQUARE FEET OF BUILDING SPACE, 13,418 SQUARE FEET OF CARGO HANDLING SPACE AND RELATED IMPROVEMENTS FOR ITS RECEIVING, STORING, AND INVENTORY, UH, AIRCRAFT SUPPLIES AND OTHER PROVISIONING OPERATIONS FOR SUPPORT OF ITS AIRLINE OPERATIONS AT AUSTIN BERGSTROM INTERNATIONAL AIRPORT FOR A TERM OF FIVE YEARS, COMMENCING AFTER THE DATE OF BENEFICIAL OCCUPANCY AND WITH RENEWAL OPTION FOR ONE ADDITIONAL FIVE YEAR TERM, UH, FUNDING. THIS ITEMS PROJECT TO RESULT IN 3,308 3030 $8 AND 16 CENTS OF REVENUE FOR THE FISCAL YEAR 2020 5 26, AUSTIN AVIATION OPERATING BUDGET, WHICH IS TWO MONTHS OF GROUND RENT DURING THE CONSTRUCTION OF TENANT IMPROVEMENTS. THE FULL RENTAL RATE WILL BEGIN IN FISCAL YEAR 2020 6 27 AFTER CONSTRUCTION IS COMPLETE. COULD WE HAVE A MOTION AND A SECOND MOTION? THANK YOU. COMMISSIONER TRIMBLE, UH, MADE THE MOTION. IS THERE A SECOND? [00:20:01] SECOND. THANK YOU, COMMISSIONER. OKAY. ALL RIGHT. SO WE HAVE A MOTION TO SECOND, UH, MR. GALLO? YES. UH, GOOD AFTERNOON COMMISSIONERS. JOHN GALLO, DEPUTY CHIEF FOR COMMERCIAL DEVELOPMENT. UM, UH, AS THE, UM, AS YOU POINTED OUT, THIS IS A GROUND, UH, LEASE IN OUR NEW CARGO FACILITY FOR SOUTHWEST. UM, IT'S OUR LAST REMAINING, UH, VACANCY TO FILL. AND SOUTHWEST WILL BE, UM, UH, MOVING THEIR PROVISIONING, UH, OPERATION TO THIS LOCATION. IT'LL ABOUT DOUBLE THE SQUARE FOOTAGE OF WHAT THEY HAVE TODAY. AND PROVISIONING IS, OF COURSE, ALL THE DRINKS AND SNACKS THAT YOU GET ON THE PLANE, UH, TO BE ABLE TO SERVICE. OF COURSE, AS JAMIE POINTED OUT EARLIER, UH, THE INCREASED NUMBER OF FLIGHTS THAT THEY'RE HAVING OUTTA AUSTIN. SO, UM, THIS IS KIND OF AN INTERIM FACILITY FOR THEM UNTIL THEY, THEY BUILD A MUCH LARGER FACILITY THAT WILL HOUSE CARGO AND PROVISIONING AND, AND SOME OTHER THINGS. SO, UM, UH, SO HAPPY TO ANSWER ANY QUESTIONS, ANY COMMENTS OR QUESTIONS? I DON'T HAVE A QUESTION. COMMISSIONER FONG, IS THIS FACILITY, UH, DESIGNED TO BE USED TO BUY SOUTHWEST DIRECTLY OR COULD EXCLUSIVELY OR, UM, IT CAN BE SHARED WITH OTHER AIRLINES? UH, THE THIS, THIS LEASE IS JUST FOR SOUTHWEST. IT'S IN A, UH, IT'S IN OUR NEW EAST CARGO BUILDING. MM-HMM . AND, UH, THAT HOUSES CURRENTLY AMAZON AND A COMPANY CALLED AIR GENERAL THAT HANDLES INTERNATIONAL CARGO. SO IT IS A MULTI-USE FACILITY. UH, ANY FUTURE FACILITIES THAT WE WORK WITH SOUTHWEST ON WOULD BE SPECIFIC TO SOUTHWEST. THANK YOU. THANK YOU. MR. GALL. DO THESE FOR THESE SOUTHWEST, OR FOR THEIR EAST CARGO LEASE RENTAL RATES, DO THEY INCREASE AT A SET AMOUNT ANNUALLY, OR IS IT, DO THEY PAY THE SAME AMOUNT FOR FIVE YEARS AND THEN, YEAH, THE WAY THAT THE EAST CARGO BUILDING, UH, THE, THE ECONOMICS OF IT WORKS IS, UM, WE HAVE TO HAVE A, WE FLOATED BONDS TO BUILD THE BUILDING, AND SO THERE'S A LEVEL OF DEBT SERVICE COVERAGE THAT WE HAVE TO MEET. SO THERE'S A RENTAL RATE MODEL THAT, UH, WE PUT TOGETHER THAT DOES HAVE ANNUAL ESCALATIONS TO IT OVER THE INITIAL TERM. SO, UM, AND THEY, THEY VARY. UH, IT'S NOT NECESSARILY TIED TO CPI. OKAY, GOT IT. JUST FOR OUR, UH, THAT'S IN THE BACKUP, UH, SINCE WE TALKED ABOUT 3030 $8 AND 16 CENTS IN THE ORIGINAL PARK, UH, SOUTHWEST WILL PAY $414,206 AND 16 CENTS IN THE FIRST FULL YEAR OF THE LEASE AGREEMENT. JUST SO A LITTLE MORE CLARIFICATION THERE. SO YEAH, THEY DO, THEY WILL JUST BE PAYING GROUND RENT RIGHT. UH, FOR THE REMAINDER OF THE YEAR TILL THEY FINISH THEIR BUILD OUT, AND THEN THEY'LL PAY THE FULL BUILDING RENT, UH, WHICH IS THE, THE 400,000. GOT IT. YOU BET. OKAY. ANY OTHER COMMENTS OR QUESTIONS? OKAY. THANK YOU MR. GALLO. WE DO HAVE A MOTION. A SECOND. ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND. MOTION PASS UNANIMOUSLY. THANK YOU. [7. Authorize an amendment to a contract for continued soil relocation for Austin Aviation with Triumvirate Environmental d/b/a Gruene Environmental Services, to increase the amount by $298,190 for a revised total contract amount not to exceed $1,436,638. Funding: $298,190 is available in the Capital Budget of Austin Aviation. [Note: This contract was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the services required for this contract, there were no subcontracting opportunities; therefore, no subcontracting goals were established.]] OKAY. SO THE NEXT ITEM ON THE AGENDA IS, UM, A DISCUSSION. UH, SEE AUTHORIZE AN AMENDMENT TO CONTRACT FOR CONTINUED SOIL RECLAMATION RE I'M SORRY, SOIL RELOCATION FOR AUSTIN AVIATION WITH, UH, HOW DO YOU SAY THAT? JASON , TRI TRIM RATE ENVIRONMENTAL, DOING BUSINESS AS GREEN ENVIRONMENTAL SERVICES TO INCREASE THE AMOUNT, UH, TO INCREASE THE AMOUNT BY $298,190 FOR REVISED TOTAL CONTRACT AMOUNT NOT TO EXCEED $1,436,638. FUNDING. TWO OF THE $298,190 IS AVAILABLE IN THE CAPITAL BUDGET OF AUSTIN AVIATION. NOTE, THIS CONTRACT WAS REVIEWED, UH, FOR SUBCONTRACTING OPPORTUNITIES IN ACCORDANCE WITH THE CITY CODE CHAPTER TWO DASH NINE B MINORITY OWNED AND WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM. FOR THE SERVICES REQUIRED FOR THIS CONTRACT, THERE WERE NO SUBCONTRACTING OPPORTUNITIES, THEREFORE, NO, UH, SUBCONTRACTING GOALS WERE ESTABLISHED. CAN WE HAVE A MOTION AND A SECOND? THANK YOU, COMMISSIONER. IS THERE A SECOND? THANK YOU. COMMISSIONER HOWDEN. OKAY, UH, OUR PRESENTER TODAY IS GONNA BE JASON ALEXANDER. THANK YOU AGAIN, COMMISSIONERS. UM, THIS ITEM BEFORE YOU TODAY IS AN AMENDMENT TO AN EXISTING CONTRACT THAT THE COMMISSION APPROVED BACK IN 2024. THIS WAS FOR A SOIL RELOCATION PROJECT THAT HAD TO DO, UH, WITH ADVANCING THE WORK OF THE MIDFIELD TAXIWAY PROJECT. UM, THAT WORK IS NOW DONE, BUT THE PROJECT ITSELF DID, UH, IN SOME WAYS EXCEED THE INITIAL, UH, ESTIMATED SCOPE OF WORK. SO THIS EFFORT IS TO AMEND THAT CONTRACT TO MAKE THAT CONTRACTOR WHOLE. THANK YOU. ANY COMMENTS, QUESTIONS REGARDING THIS ITEM? [00:25:01] OKAY, IF NONE, UH, WE HAVE A MOTION AND A SECOND. ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND. MOTION PASSES UNANIMOUSLY. THANK YOU, MR. ALEXANDER. [8. Authorize five contracts for Auditing Services for Austin Aviation with Weaver & Tidwell, LLP, Cohn Reznik, LLP, Blue & Co., LLC, GilFlo Consulting Services, LLC and Carr, Riggs & Ingram, LLC, for an initial term of five years with up to two one-year extension options in an amount not to exceed $1,600,000. Funding: $200,000 is available in the Operating Budget of Austin Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. [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 services required for this solicitation, there were no subcontracting opportunities, therefore, no subcontracting goals were established.]] ALL RIGHT. UH, NEXT ITEM ON THE AGENDA IS ON PAGE 54. UH, ITEM EIGHT. UH, OKAY. AUTHORIZED FIVE CONTRACTS FOR AUDITING SERVICES FOR AUSTIN AVIATION WITH WEAVER AND TIDWELL, LLP, JOHN RESNICK, UH, CON RESNICK, LLP BLUE, AND COMPANY LLC GILL FLOW CONSULTING SERVICES, LLC CAR RIGS AND INGRAM, LLC FOR INITIAL TERM OF FIVE YEARS WITH UP TO TWO ONE YEAR EXTENSION OPTIONS IN AMOUNT NOT TO EXCEED $1,600,000. FUNDING OF $200,000 IS AVAILABLE IN THE OPERATING BUDGET OF AUSTIN. AVIATION FUNDING FOR THE REMAINING CONTRACT TERM AND, UH, IS CONTINGENT UPON AVAILABLE FUNDING AND FUTURE BUDGETS. THIS SOLICITATION WAS REVIEWED FOR SUBCONTRACTING OPPORTUNITIES IN ACCORDANCE WITH THE CITY CODE CHAPTER TWO DASH NINE B MONITORING OWNED AND WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM. FOR THE SERVICES REQUIRED FOR THIS SOLICITATION, THERE WERE NO SUB SUBCONTRACTING OPPORTUNITIES, THEREFORE NO SUBCONTRACTING GOALS, UH, WERE ESTABLISHED. COULD WE HAVE A MOTION AND A SECOND ON THIS ITEM? UH, UH, MOTION, UH, SUSAN RETA. SECOND BY, UH, MS. FONG. ALRIGHT, COMMISSIONER FONG. THANK YOU. ALRIGHT, UH, THIS, UH, ITEM, UH, PRESENTERS IS UBA. YES. THANK YOU. UH, UBA GARRE, UH, DEPUTY CHIEF FINANCE. UM, SO AS A LARGE HUB AIRPORT, UM, IT IS BEST PRACTICE TO ENGAGE PROFESSIONAL AUDITING SERVICES TO AUDIT AIRPORTS, CONCESSION AGREEMENTS, AND REVENUE GENERATING AND OTHER CONTRACTS. SO THE PURPOSE OF THIS CONTRACT IS TO ALLOW US TO GET THOSE SERVICES, UH, FROM SUCH PROFESSIONAL AUDITING FIRMS. THIS WILL ALLOW THE AIRPORT TO SUPPORT THE FISCAL AND OPERATIONAL INTEGRITY OF THE CONTRACTS AND THEIR PERFORMANCE. AS YOU MENTIONED, THIS CONTRACT IS FOR FIVE YEARS, UM, AND WITH TWO ONE YEAR EXTENSION OPTIONS, UH, UH, HAVING FIVE YEARS, UH, WILL ALLOW US TO GET THE RIGHT RESOURCES AT THE RIGHT TIME AND, UH, WILL ENSURE THAT WE GET THE ASSURANCE AND THE SPECIALIZED AUDIT AS WE NEED IT. UH, I HAVE, WITH WITH ME, UM, IFFA LONGMORE, WHO IS OUR FINANCIAL AIRPORT FINANCIAL MANAGER. UM, SHE'S THE LEAD IN MANAGING THE CONTRACT. SO IF YOU HAVE ANY SPECIFIC QUESTIONS, I'LL INVITE HER UP HERE TO ANSWER THOSE. ANY COMMENTS, QUESTIONS? UH, COMMISSIONER TRIMBLE. THANK YOU, CHAIR. UH, YEAH, JUST A QUESTION, BECAUSE I NOTICED THERE ARE MULTIPLE FIRMS ON THIS CONTRACT. AND SO, UM, ARE THESE FIRMS BEING SELECTED FOR SPECIFIC DISCIPLINES IN, IN, IN THE AUDITING FUNCTION UNDER THIS CONTRACT? OR WILL THEY BE HANDLED MORE LIKE A ROTATION BASIS BASED ON SPECIFIC SCOPES OF WORK THAT ARE COME SIMILAR TO LIKE WHAT WE DO FOR LIKE AN ENGINEERING ROTATION LIST? UH, RIGHT. UM, SO IT WOULD BE EXPECTED THAT THEY DO HAVE, UM, MULTIPLE CAPABILITIES IN TERMS OF LIKE THEIR, UH, AUDIT SPECIALTIES. UH, WHAT WE'LL DO IS, UH, RISK ASSESSMENT ON AN ANNUAL BASIS, PROVIDE SCOPES OF WORK FOR THOSE AUDIT PROJECTS AND PROVIDE THOSE OUT FOR THE FIRMS TO RESPOND TO. OKAY. THANK YOU. ANY OTHER COMMENTS, QUESTIONS? I WAS PLEASED TO SEE THAT YOU HAD 11 PROPOSALS. SO THIS REALLY SHOWS THAT, UH, Y'ALL HAVE REALLY WORKED HARD TO GET OUT THERE INTO OUR COMMUNITY TO GIVE PEOPLE, UH, COMPANIES THE OPPORTUNITY TO BID ON THESE PROJECTS. AND LOOKS LIKE YOU, I'M SURE ALL 11 WERE VERY GOOD, BUT YOU DID NARROW IT DOWN TO FIVE, WHICH I THINK IS STILL VERY GOOD. THE OTHER THING WHICH I, WHEN SAW THIS IS, THIS IS REALLY KIND OF NEW FOR US ON THIS PARTICULAR AUDITING, AND I REALLY LIKE THE IDEA OF BEING PROACTIVE INSTEAD OF REACTIVE. SO, UH, I THINK BY DOING THAT, DOING THAT, LOOKING AT OUR REVENUE, MAKE SURE EVERY, ALL THE CONTRACTION, ALL THE CONTRACTS ARE IN COMPLIANCE, I THINK THAT SENDS A GOOD MESS MESSAGE ACROSS ALL OUR VENDORS AND OUR COMMUNITY TO KNOW THAT WE'RE, UH, DOING OUR FIDUCIARY RESPONSIBILITY. SO REALLY, I APPLAUD Y'ALL FOR, FOR THE WORK ON THIS. I'M VERY EXCITED ABOUT BEING PROACTIVE HERE. THANK YOU. ANY OTHER COMMENTS OR QUESTIONS? OKAY. THANK YOU FOR YOUR PRESENTATION. OH, WE GOT A VOTE. ALL WE HAVE A MOTION IN A SECOND. ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND. OKAY. MOTION PASSES. UNANIM UNANIMOUSLY. ALL RIGHT. UH, NEXT, UH, WE ITEM ON THE AGENDAS DISCUSSION ITEMS. WE DID NOT HAVE ANY THIS TIME SINCE WE DIDN'T, UH, VOTE ON ANY ITEMS LAST, UH, LAST MONTH. SO THERE WAS, UH, NONE TODAY. [FUTURE AGENDA ITEMS] UH, NEXT ITEM ON THE AGENDA IS FUTURE AGENDA ITEMS. UH, UH, JASON ALEXANDER, WOULD YOU LIKE TO GIVE US A UPDATE ON THE STATUS OF, UH, SOME OF OUR OUTSTANDING ITEMS? HAPPY TO. UM, AS THE COMMISSION KNOWS, WE'VE HAD A FEW ITEMS IN THE [00:30:01] PIPELINE FOR A WHILE. UM, WE DO HAVE INVITES OUT RIGHT NOW TO FLINT HILLS RESOURCES TO COME AND GIVE AN UPDATE ON THE FUEL JET FUEL PIPELINE OUT TO THE AIRPORT. UM, I THINK THEY ARE IN THE PROCESS OF HOSTING SOME PRE-CONSTRUCTION MEETINGS. AND SO ONCE THAT'S DONE, UH, WE'D LIKE TO GET THEM BACK OUT HERE JUST TO GIVE YOU ALL A COURTESY BRIEFING, UH, AN UPDATE ON THAT PROJECT. THEY'RE, THEY'RE VERY WILLING TO DO THAT. WE'RE JUST TRYING TO TIME THAT APPROPRIATELY. UM, SIMILARLY, WE'VE HAD, UH, SOME CONVERSATION WITH A TP, UH, AUSTIN TRANSIT PARTNERSHIP TO HAVE THEIR STAFF COME OUT AND PROVIDE A BRIEFING ON THE, KIND OF THE LATEST, UH, WITH REGARD TO THE LIGHT RAIL PROJECT, UH, EXTENSION OUT TO THE AIRPORT. UM, AND I BELIEVE WE'VE ALSO TALKED IN THE PAST ABOUT, UH, DOING AN UPDATE ON THE USE AND LEASE AGREEMENT. AND WE'VE NOT PENCILED THAT IN FOR A DATE YET, BUT THAT IS ON OUR LIST. OKAY. THANK YOU. WELL, NOW, UH, WE'LL NOW OPEN UP FOR COMMENTS OF QUESTIONS ON WHAT, UH, JASON JUST SAID, BUT ALSO ARE THERE ANY FUTURE AGENDA ITEMS THAT WOULD LIKE TO BE DISCUSSED? OKAY. UH, THE ONE ITEM THAT, UH, COMMISSIONER CHU, UH, WE TALKED ABOUT EARLY, JASON, WE CAN HAVE THAT TO TALK ABOUT IN A FUTURE AGENDA ITEM. AND THANK YOU AGAIN, UH, COMMISSIONER CHU FOR THAT RECOMMENDATION. WE'LL MARK THAT DOWN. OKAY. ANY FINAL COMMENTS REGARDING THAT? OKAY. [NEXT REGULAR MEETING] ALRIGHT. UM, OUR NEXT REGULAR BOARD MEETING IS, UH, SCHEDULED FOR AUGUST 12TH, 2026. UH, WE'RE READY TO ADJOURN. UH, IF NO OBJECTIONS, THEN WE'RE ADJOURNED AT 3 32. THANK YOU SO MUCH FOR COMMISSIONERS FOR BEING HERE. THANK YOU STAFF. THANK YOU GUYS. HAVE A GOOD ONE. * 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.