Aug 12, 2026 Airport Advisory Commission

[CALL TO ORDER]

[00:00:05]

AGAIN. OUR AUSTIN AIRPORT COMMISSION MEETING OF AUGUST 12TH, 2026.

IT'S 3:02 P.M.. ALL RIGHT. FIRST ITEM ON OUR AGENDA IS APPROVE MINUTES THAT ARE ON PAGE FIVE.

[APPROVAL OF MINUTES]

IS THERE A SECOND? SECOND. THANK YOU, MR. SPENCE.

THAT'S A SECOND. WE'VE GOT A MOTION A SECOND. DOES ANY COMMENTS OR QUESTIONS REGARDING THE MINUTES? IF NOT, ALL IN FAVOR OF THE MINUTES, PLEASE RAISE YOUR RIGHT HAND. THANK YOU.

MOTION PASSES UNANIMOUSLY. OKAY. THANK YOU. ALL RIGHT.

[6. Briefing on BATX Pipeline Project status presented by Andy Saenz and Jake Reint on behalf of Flint Hills Resources]

IF THERE'S NOT ANY OBJECTIONS, WE'D LIKE TO MOVE THEM TO THE BEGINNING.

OKAY. WE'LL MOVE. MOVE THAT FORWARD. WELCOME.

I'M NOT SURE. THERE YOU GO. THERE WE GO. THANK YOU.

OKAY, THERE WE GO. CHAIRMAN. AGAIN, COMMISSIONERS, THANK YOU AGAIN FOR HAVING US TODAY.

I THINK THIS IS EITHER OUR FOURTH OR FIFTH TIME THAT WE'VE BEEN HERE BEFORE THIS BOARD TO TALK ABOUT OUR PROJECT.

AND WE CERTAINLY APPRECIATE EVERY OPPORTUNITY THAT WE CAN THAT WE HAVE TO TALK TO YOU ABOUT THIS VERY IMPORTANT PROJECT.

FOR THE RECORD, AGAIN, MY NAME IS ANDY SINES.

I'M THE PUBLIC AFFAIRS DIRECTOR FOR FLINT HILLS RESOURCES.

THIS IS JAKE RENT. HE'S OUR VICE PRESIDENT OF PUBLIC AFFAIRS FOR FLINT HILLS RESOURCES, AND WE REALLY DO APPRECIATE THE CONTINUED ENGAGEMENT THAT WE'VE HAD WITH THIS COMMISSION TO TALK ABOUT THIS PROJECT AND WHY IT'S SO IMPORTANT TO US AND TO AUSTIN FLINT HILLS RESOURCES.

OUR COMPANY HAS A LOT OF REFINING EXPERIENCE, AND WE'VE BEEN THE PRIMARY FUEL PROVIDER TO THE AIRPORT FOR THE PAST 30 YEARS.

AND THAT'S KIND OF THE ISSUE. THAT'S WHY WE'RE HERE TODAY.

AUSTIN IS STILL THE LARGEST AIRPORT IN THE COUNTRY THAT RELIES ON DAILY TRUCK DELIVERIES TO GET ITS FUEL.

SO EVERY DAY, 100 TRUCKS RUN UP AND DOWN HIGHWAY 71 DELIVERING FUEL TO THE TANKS AT THE AIRPORT.

WE KNOW THAT THERE'S A BETTER WAY TO DO IT. THE BAY PROGRAM PIPELINE PROVIDES A LONG TERM SOLUTION.

IT'S PRIVATELY FUNDED 20 MILE LINE PIPELINE PROJECT THAT WILL DELIVER FUEL DIRECTLY FROM OUR FACILITY IN BASTROP DIRECTLY TO THE AIRPORT, IMPROVING, REDUCING TRUCK TRAFFIC AND IMPROVING THE RELIABILITY OF THAT SUPPLY.

THE ROUTE. JUST TO BRING EVERYBODY BACK UP TO SPEED.

IF WE CAN GET TO THE THIRD SLIDE IS COMING UP HERE SOON.

THE ROUTE CLOSELY FOLLOWS HIGHWAY 71 CONNECTING OUR TERMINAL IN BASTROP TO THE AUSTIN AIRPORT.

THE MAJORITY OF THE 20 MILE PIPELINE PROJECT SITS IN TXDOT RIGHT OF WAY.

AND SO YOU'LL SEE BASICALLY A STRAIGHT LINE FROM OUR FACILITY IN BASTROP TO THE AIRPORT.

12% OF THE ROUTE IS ACTUALLY ON AIRPORT PROPERTY.

THAT'S THE LAST TWO MILES OF THAT PROJECT. AND WE'VE WORKED VERY CLOSELY WITH YOUR AIRPORT STAFF TO MAKE SURE THAT WE ARE DOING IT PROPERLY, SO THAT WE ARE SEAMLESS IN OUR EFFORTS TO COMPLETE THIS PIPELINE.

I WANT TO TURN IT OVER TO JAKE, WHO'S GOING TO TAKE US THROUGH THE CONSTRUCTION HIGHLIGHTS SO FAR.

THANKS, ANDY. COMMISSIONERS. MY NAME IS JAKE RENT AND VICE PRESIDENT OF PUBLIC AFFAIRS FOR FLINT HILLS RESOURCES. THANK YOU FOR HAVING US THIS AFTERNOON.

THIS HAS BEEN A LONG JOURNEY, THIS PROJECT. I KNOW ANDY JUST SHARED SOME OF THE HISTORY, BUT GOING BACK A LITTLE BIT FURTHER, WE ACTUALLY FIRST LOOKED AT THIS PROJECT BEFORE COVID.

SO SOME 6 OR 7 YEARS AGO NOW, AND AS WE WERE ADVANCING THE PROJECT, OF COURSE, THAT TERRIBLE PANDEMIC HIT AND IT CHANGED THINGS.

WE ALL STOPPED IN OUR TRACKS, AND IT TOOK SOME TIME FOR US TO HAVE TO REEVALUATE AND UNDERSTAND WHEN AND IF THINGS WOULD RETURN TO NORMAL.

FORTUNATELY, WE DID SEE A RECOVERY FROM AN AIRPORT DEMAND PERSPECTIVE AND CLEARLY LONG TERM.

AUSTIN IS A TREMENDOUS DESTINATION. A LOT OF PEOPLE LIKE TO VISIT AUSTIN, AND LONG TERM DEMAND FOR TRAVEL HERE IN AUSTIN SEEMS VERY, VERY SECURE. SO WE DID OBVIOUSLY DECIDE TO MOVE FORWARD WITH THE PROJECT.

WE OFFICIALLY BROKE GROUND THIS SPRING AND IN MARCH, AND WE'VE MADE REALLY TREMENDOUS PROGRESS SO FAR.

IN FACT, ALL OF THE CLEARING IS NOW COMPLETE AND THE MAJORITY OF THE PIPELINE IS ACTUALLY IN THE GROUND.

SO WE'RE AT OVER 60% COMPLETION AT THIS POINT.

WE ARE GOING TO BE MOVING INTO THE AIRPORT GROUNDS IN THE WEEKS AHEAD, POSSIBLY AS EARLY AS NEXT WEEK.

[00:05:06]

AS ANDY NOTED, THE COLLABORATION WITH THE AIRPORT HAS BEEN TREMENDOUS AND IT NEEDED TO BE THERE'S NOT A LOT OF ROOM IN THE AIRPORT AND OBVIOUSLY THERE'S LOTS OF PLANS AT THE AIRPORT FOR, FOR GROWTH.

AND SO TO, TO FIT THIS TEN INCH PIPELINE IN A VERY EFFICIENT WAY TO SUPPLY THOSE TANKS WAS NOT EASY.

SO AGAIN REALLY OWE A DEBT OF GRATITUDE TO THE PROFESSIONAL FOLKS AT THE AIRPORT THAT HELPED US FIGURE THIS OUT.

I ALSO WANT TO REALLY CALL OUT TEX-DOT. WE WOULD NOT BE HERE TODAY WITHOUT TEX-DOT.

THEY WERE INCREDIBLY ACCOMMODATING, ALLOWING US TO USE THE RIGHT OF WAY ON 71 FOR A GOOD PORTION OF THIS PROJECT, WHICH REALLY MINIMIZED PROJECT IMPACTS THE NEED TO GO THROUGH HIGH DENSITY AREAS, HABITAT AREAS.

AGAIN, I DON'T THINK WE WOULD BE HERE TODAY WITHOUT TXDOT AND AGAIN, THE COLLABORATION AS WELL OF THE CITY AND, AND THE AIRPORT LEADERS. SO WE REALLY DO APPRECIATE THAT COLLABORATION.

AND SO FAR, AGAIN, WE'RE REALLY ON TRACK TO BE COMPLETE.

WE EXPECT BY THE END OF THIS YEAR, AT LEAST WITH OUR PORTION OF THE PROJECT, THERE'S SOME ADDITIONAL WORK THAT WILL NEED TO BE DONE.

BUT IF EVERYTHING GOES TO PLAN, WE SHOULD BE IN POSITION TO BE UP AND RUNNING BY CLOSE TO THIS TIME NEXT YEAR.

DO YOU WANT TO CALL OUT TO A COUPLE IMPORTANT THINGS? YOU'LL SEE IN THE PRESENTATION DECK. SAFETY. SAFETY IS ALWAYS THE MOST IMPORTANT THING THAT WE PRIORITIZE.

WE ARE IN ADDITION TO A PIPELINE COMPANY, WE'RE REFINING COMPANY.

SO EVERYTHING BEGINS AND ENDS WITH SAFETY AND KNOCK ON WOOD.

THIS PROJECT HAS HAD NO RECORDABLE INCIDENTS.

WE'VE HAD THOUSANDS AND THOUSANDS OF MAN HOURS WORKED SO FAR AND AGAIN WITH REALLY GREAT CONTRACTORS.

THE LABOR FORCE HAS BEEN REMARKABLE. THE TEAM HAS WORKED SEAMLESSLY IN THE FIELD TO TO MINIMIZE ALL ISSUES.

AND THINGS HAVE GONE WELL AND MOST IMPORTANTLY, SAFELY.

SO WE'RE REALLY PLEASED TO REPORT THAT THERE ARE SOME KIND OF BASIC PROCESSES THAT YOU WILL SEE HERE IN THE PRESENTATION DECK IN TERMS OF WHAT WE'RE DOING, TWO DIFFERENT TYPES OF EXCAVATION. THERE'S TRADITIONAL KIND OF CUTTING WHERE YOU ARE REALLY TRENCHING FOR THE PIPELINE AND THEN HORIZONTAL DRILLING.

AND SO MORE THAN HALF OF THE PROJECT IS BEING DONE THROUGH TRADITIONAL TRENCHING.

THE REST IS HORIZONTAL DRILLING IN DIFFERENT LOCATIONS.

AND THAT'S REALLY, YOU KNOW, BASED ON ANY IMPEDIMENTS.

FOR EXAMPLE, WE JUST GOT THROUGH THE ONION CREEK, WHICH WAS ONE OF THE BIGGER SENSITIVE AREAS TO, TO TRAVERSE. AND WE GOT THROUGH THAT SUCCESSFULLY WITH HORIZONTAL DRILLING.

AND THAT'S WHERE YOU GO ABOUT 60FT BELOW THE CREEK.

SO AGAIN, HITTING THOSE DEPTHS IN CERTAIN AREAS UNDER ROADS AND HIGHWAYS.

WE'LL BE DOING SOME OF THAT WORK IN THE AIRPORT AS WELL TO MINIMIZE ANY DISRUPTION TO AIRPORT OPERATIONS.

WE WILL EVENTUALLY GET TO COMMISSIONING PHASE, BUT AS YOU CAN SEE HERE AGAIN IN THE PRESENTATION, ALL THE VARIOUS THINGS WE DO TO ENSURE THE INTEGRITY OF THE WORK THAT'S BEING DONE, THE WELDING X-RAYING, THE PIPELINES, ALL THAT IS HAPPENING WHILE WE'RE LAYING THE PIPE IN THE FIELD.

SO VERY, VERY EFFICIENT PROCESS OVER OVERALL.

AGAIN, WE ANTICIPATE BEING COMPLETE WITH CONSTRUCTION IN NOVEMBER OF THIS YEAR, OR WE'LL CALL IT TOWARD THE END OF THIS YEAR, AND THEN WE'LL MOVE INTO THE KIND OF THE FINAL PHASES OF MAKING THE INTERCONNECTIONS WITH, WITH THE TANKS WORKING WITH THE AIRPORT ON, ON THAT ASPECT AS WELL.

IN ADDITION TO THE AIRPORT CONSORTIUM THAT MANAGES A CERTAIN PORTION OF THAT INFRASTRUCTURE.

FOLLOWING THAT, WE'LL BE COMMISSIONING THE PIPELINE AND HOPEFULLY UP AND RUNNING THIS TIME NEXT YEAR.

WITH THAT, WE'D BE HAPPY TO TAKE ANY QUESTIONS IF YOU HAVE ANY.

THANK YOU FOR YOUR PRESENTATION. COMMISSIONER.

OPEN UP FOR COMMENTS OR QUESTIONS. ONE THING I DO WANT TO ASK YOU A QUESTION.

OKAY. MR. COMMISSIONER, IF YOU CAN JUST REMIND US WHAT WAS THE TOTAL CAPITAL COST OF THE PIPELINE? COMMISSIONER. THANK YOU FOR THE QUESTION. WE'VE NOT PUBLICLY DISCLOSED THE COST OF THE PIPELINE.

IT HAS BEEN PRIVATELY PAID FOR BY OUR COMPANY.

IT'S JUST NOT SOMETHING WE'VE MADE PUBLIC AT THIS POINT.

[00:10:01]

COMMISSIONER. THANK YOU.

DO YOU APPRECIATE THE THE UPDATES OVER THE COURSE OF THIS PERIOD? A QUICK QUESTION ON SAFETY. IT SEEMS LIKE THERE'S QUITE THE IMPRESSIVE SAFETY RECORD.

I WAS JUST UNFAMILIAR WITH THIS CONCEPT OF A GOOD CATCH.

DO YOU MIND SAYING MORE ABOUT THAT? A GOOD CATCH IS TYPICALLY CHARACTERIZED BY A NEAR MISS, OR AN INCIDENT THAT WAS AVOIDED BECAUSE SOMEONE FOLLOWED PROTOCOL.

SOMEONE ASKED THE RIGHT QUESTION AT THE RIGHT TIME, OR SOMEONE RAISED A CONCERN AND THEN AVOIDED AN INCIDENT.

THAT'S TYPICALLY HOW WE CHARACTERIZE A GOOD CATCH.

THANK YOU. ANY OTHER COMMENTS? QUESTIONS? I JUST WANT TO HIGHLIGHT THAT ALSO THAT THAT'S VERY, VERY IMPRESSIVE. THAT'S NOT AN ACCIDENT THAT YOU HAVE ZERO ZERO INCIDENTS HERE.

THAT'S VERY IMPORTANT. AND THE OTHER ITEM IS, IS REALLY TAKING 200 TRUCKS OFF THE ROAD EVENTUALLY HERE.

THAT JUST BETWEEN EMISSIONS AND, AND THE MAIN THING TOO IS SAFETY.

JUST THE TRUCKS BEING ON THE ROAD. AND THEN OF COURSE, WE DON'T HAVE MUCH WEATHER HERE AS FAR AS BEING COLD, BUT WHEN YOU DO HAVE ICE, ETC., THAT'S A MAJOR, MAJOR ISSUE.

WE DO REALIZE THAT THE PRICE WILL BE A FEW TRUCKS ALONG THE WAY ON THAT ONE THING.

IF YOU WOULDN'T MIND, WHEN LOOKING AT THE KEY BENCHMARK, WHEN YOU TALK ABOUT FINISHING AND HOPEFULLY FINISHING IN NOVEMBER OF 26, IT'S A PRETTY BIG JUMP TO JULY OF 27. CAN YOU MAYBE JUST EXPAND A LITTLE BIT ON THAT? SO WE UNDERSTAND IT SEEMS TO JUST LOGICALLY LOOKING AT IT LOOKS LIKE THE HARD WORK CAN BE DONE BY NOVEMBER.

SO MAYBE YOU CAN EXPAND ON WHAT HAS TO BE DONE.

YEAH. AND SOME OF THIS IS COMMISSIONER IS BEYOND OUR CONTROL.

AND THERE ARE OTHER PARTICIPANTS, OBVIOUSLY, THAT HAVE TO MAKE THESE CONNECTIONS ALL WORK.

AND THERE'S PERMITS THAT GO ALONG WITH THAT TOO.

SO YOU KNOW, SPEAKING FOR OUR PORTION OF THE PROJECT, WE'RE REALLY CONFIDENT THAT IF THINGS CONTINUE TO GO WELL, WE'LL BE IN POSITION TO BE UP CERTAINLY BEFORE THE CURRENT PROJECTED START TIME.

BUT OTHER THINGS WOULD HAVE TO GO RIGHT THERE. AS I MENTIONED, THE INTER EXCHANGE BETWEEN THE PIPELINE AND THE TANKS AT THE AIRPORT, AND THEN PORTIONS OF THAT ARE ALSO NEED TO BE BUILT BY US AND THEN THE OTHER PARTIES.

SO THAT REALLY IS NOT JUST CONSTRUCTION TIME.

IT'S IT'S ALSO PERMITTING TIME. I CAN'T SAY IF IT'S PADDED, BUT, BUT CERTAINLY OUR HOPE IS THAT WE CAN DELIVER THIS PROJECT SOONER THAN WHAT'S CURRENTLY BEING PROJECTED.

THANK YOU. YES, SIR. COMMISSIONER COLE. HI THERE.

THANK YOU ALL SO MUCH FOR YOUR TIME AND THIS PRESENTATION.

AT THE BEGINNING OF THE PRESENTATION YOU DISCUSSED, THE HEAD OF THE PIPE IS IN BASTROP, I BELIEVE, IS THAT CORRECT? WE HAVE A TERMINAL IN BASTROP.

SO THE WAY THE PIPELINE INFRASTRUCTURE FOR THIS REGION WORKS IS THERE ARE TWO REFINERIES THAT WE OPERATE IN CORPUS CHRISTI, TEXAS. THERE'S A PIPELINE SYSTEM THAT BRINGS REFINED PRODUCT GASOLINE, DIESEL, AND OF COURSE, JET FUEL TO CENTRAL TEXAS. WE ALSO SUPPLY DFW OFF OF THAT SAME SYSTEM.

SO THIS NEW PIPELINE, WHICH WILL ORIGINATE AT BASTROP, BASTROP, AGAIN SUPPLIED BY THE EXISTING PIPELINE SYSTEM OUT OF CORPUS CHRISTI, WILL BRING THAT PRODUCT FROM BASTROP TO THE AIRPORT DIRECTLY, OBVIOUSLY FORGOING THE NEED OF MANY, MANY TRUCKS A DAY, DOING A 40 MILE ROUND TRIP BACK AND FORTH BETWEEN THE TERMINAL AND THE AIRPORT.

OKAY, THAT WAS THE ESSENCE OF MY QUESTION. BASTROP IS A HUB OF AYE SPOKE.

I DIDN'T THINK WE HAD A REFINERY IN BASTROP, TEXAS.

NEWS TO ME, BUT A NATIVE SON OF CORPUS. NEXT QUESTION IS Y'ALL AREN'T COMING IN ON THE 3.61 TURF, ARE YOU? NO, IT'S COMING UP FROM CORPUS TO BASTROP.

GOTCHA. THANK YOU SO MUCH. ABSOLUTELY. CHAIR, DO YOU HAVE A QUESTION? YES, SIR. SO AND BY THE WAY, GREAT PRESENTATION.

THANK YOU. I DON'T REALLY HAVE A LOT OF QUESTIONS. YOU DID A REALLY GOOD JOB OF LAYING EVERYTHING OUT, SO THANK YOU. ONE QUESTION I HAVE IS YOU DID MENTION THAT, YOU KNOW, A COUPLE OF TIMES YOUR PORTION OF THE PROJECT WHEN YOU WERE REFERENCING THE OTHER PORTION OF THE PROJECT, ARE YOU REFERENCING THE AIRPORT AYE US AND MAKING THAT CONNECTION TO THE FUEL TANKS AND ALL THOSE KIND OF THINGS ON SITE.

I JUST WANT TO MAKE THAT CLEAR AS WE'RE TALKING ABOUT THAT. CORRECT. AND THE AIRPORT CONSORTIUM OWNS ASPECTS OF THE RECEIPT INTO THE TANKS.

SO THAT PROJECT IS THEIR PROJECT. WHERE WE ALL HAVE TO TIME THIS OUT OF COURSE, AND WE'VE BEEN PERHAPS A LITTLE BIT AHEAD OF SCHEDULE ON OUR END.

SO AGAIN, HOPEFULLY EVERYONE CAN MOVE EFFICIENTLY TOWARD A SWIFTER COMPLETION OF THE WHOLE SYSTEM.

AND WE FEEL CONFIDENT THE COORDINATION IS GOING WELL BETWEEN THE AIRPORT AND AND YOUR TEAM.

THE AIRPORT HAS BEEN TREMENDOUS FOR, FOR US TO, TO WORK WITH.

AND AGAIN, THIS HAS BEEN VERY COMPLICATED. IT'S NOT EASY TO, TO FIND A PLACE TO LOCATE A PIPELINE IN A EXISTING,

[00:15:08]

SO IT'S BEEN BEEN REMARKABLE. I THINK ONCE WE'RE INSIDE THE AIRPORT, KNOWING WHERE WE'RE GOING NOW AND THE INFRASTRUCTURE AROUND THE TANKS THAT SHOULDN'T BE OVERLY COMPLICATED. SO IT'S REALLY JUST A MATTER OF GETTING PERMITS AND THEN GETTING THE WORK DONE.

WELL, IMPRESSIVE PROGRESS SO FAR AND REALLY APPRECIATE THE COORDINATION, ESPECIALLY BECAUSE THERE'S A FEW MORE PROJECTS HAPPENING ON THE AIRPORT SIDE. SO APPRECIATE ALL THE COORDINATION BACK AND FORTH. THANK YOU. I JUST WANTED TO I I'VE MISSED Y'ALL'S EARLIER PRESENTATIONS, BUT I DO.

IT'S NOT EASY TO BUILD A PIPELINE IN AUSTIN, TEXAS.

SO I DO WANT TO COMPLIMENT YOU ON. IT SOUNDS LIKE VERY THOUGHTFUL COORDINATION WITH EVERYBODY INVOLVED, ALL THE DIFFERENT STAKEHOLDERS AND COMMUNITY GROUPS.

AND IT'S NOT EASY. SO I DO WANT TO SAY GOOD WORK SO FAR AND WE APPRECIATE Y'ALL.

THANK YOU. WE KNOW WE HAVE TO EARN THAT. AND WE ONCE WE'RE COMPLETED AND UP AND RUNNING, WE'LL WE'LL CONTINUE TO BE VERY ENGAGED AND ALWAYS RESPONSIVE TO ANY CONCERNS PEOPLE HAVE. THAT'S OUR STANDARD, NOT JUST IN AUSTIN.

IT'S OUR STANDARD ACROSS OUR COMPANY. ANY OTHER COMMENTS? QUESTIONS? OKAY. JUST ONE LAST THING. YOU KIND OF WENT OVER IT QUICKLY, BUT LIKE YOUR KEY BENCHMARKS, YOU KNOW, THIS REALLY STARTED ON OCTOBER 20TH OF 2023.

BUT ONE THING I DO WANT TO COMPLIMENT YOU AND YOUR TEAMS ON.

AND ALSO, I KNOW PAUL SALDANHA AND CAROLINE HAVE REALLY WORKED ON THIS, ALSO THAT THIS COMMUNITY ENGAGEMENT IS KEY.

AND I THINK THAT'S A BIG PART OF THE THE BEING VERY SUCCESSFUL HERE IS THAT YOU STARTED THE RIGHT WAY MOVING FORWARD ALONG WITH THE, OUR AIRPORT TEAM MOVING THAT ALONG TOO. SO JUST, JUST WANT TO THANK EVERYONE INVOLVED FOR DOING THAT BECAUSE WITHOUT OUR COMMUNITY.

IT'S A, IT'S A LOT HARDER ROAD TO HOE. SO JUST WANT TO THANK YOU ALL FOR DOING THAT.

OKAY. WELL, THANK YOU ALL. JASON, DO YOU HAVE ANY FOLLOW UP COMMENTS OR ARE WE.

NO, SIR. I THINK THEY COVERED IT. OKAY. WELL, THANK YOU ALL.

THANK YOU. THANK YOU, COMMISSIONERS, FOR LETTING US MOVE THAT FORWARD.

NEXT ITEM ON THE AGENDA IS OUR STAFF BRIEFING.

[2. Briefing on June 2026 Financial Results presented by Rajeev Thomas, Chief Financial Officer]

ALL YOU HAVE TO LOOK ANUPA. SO THANK YOU. WELCOME.

THANK YOU, THANK YOU. AIRPORT DEPUTY CHIEF OF FINANCE PRESENTING HERE TODAY.

THE FINANCIAL RESULTS FOR THE MONTH OF JUNE AND THE NINE MONTH PERIOD FOR FISCAL YEAR 2026, STARTING IN OCTOBER THROUGH JUNE 2026. SO AS YOU HAVE OBSERVED IN THE LAST FEW MONTHS AS WELL, THIS THIS MONTH ALSO, WE SAW AN INCREASE IN OUR PASSENGER AND AIRCRAFT ACTIVITY.

AND BECAUSE OF THAT, WE SAW AN INCREASE IN OUR ENPLANEMENTS OF 4%.

IS IT ON? I THINK IT'S ON. IT'S OKAY. I NEED TO GET IT CLOSER.

MAYBE. SORRY. SO YEAH THE PASSENGER AND AIRCRAFT ACTIVITY CONTINUES TO GROW.

OH, I NEED TO DO THIS. AND SO THE PASSENGER ENPLANEMENT GROUP GREW 4% FOR THE MONTH OF JUNE AND FOR FISCAL YEAR TO DATE OR YEAR OVER YEAR, IT GREW TO 2.5%.

OUR LANDING WEIGHTS ALSO INCREASED 2.7% FOR THE MONTH OF JUNE, AND 6.5% YEAR OVER YEAR FOR THE YEAR TO DATE.

SO GIVEN THE INCREASE IN ACTIVITY, WE WERE ABLE TO GENERATE MORE REVENUE FOR AIRLINE REVENUE.

WE SAW AN INCREASE OF 6.8 MILLION FOR THE MONTH OF JUNE AND 57 MILLION YEAR TO DATE FISCAL YEAR TO DATE.

THAT'S APPROXIMATELY 44% INCREASE YEAR OVER YEAR ON THE NON AIRLINE SIDE.

AGAIN, BECAUSE OF THE INCREASE ACTIVITY, WE SAW 1.2 MILLION INCREASE IN REVENUE.

AND FOR THE MONTH OF JUNE ALONE AND 9.6 YEAR OVER YEAR FOR THE FISCAL YEAR.

THAT'S ABOUT 8% INCREASE OVER YEAR OVER YEAR.

SO TOTAL REVENUE WENT UP 8.1 MILLION FOR THE MONTH OF JUNE AND 66.9 MILLION FOR FISCAL YEAR TO DATE.

THAT'S 26% INCREASE YEAR OVER YEAR. ON THE EXPENSE SIDE, I WILL JUST TALK ABOUT FROM, FROM A YEAR OVER YEAR PERSPECTIVE, I'LL TALK ABOUT THE FISCAL YEAR TO DATE LENGTH BECAUSE THAT'S MORE MEANINGFUL FOR FISCAL YEAR TO DATE.

OUR TOTAL EXPENSES WENT UP 7.7 MILLION. BUT THAT IS TO BE EXPECTED, AS I SAY THAT EVERY MONTH,

[00:20:02]

SO 7.7 MILLION, WHICH IS 6.3%. BUT AS YOU WILL NOTE, WHEN WE TALK ABOUT THE BUDGET THAT IT'S UNDER BUDGET.

SO WE HAD ALREADY ANTICIPATED THAT WE WILL SEE AN INCREASE IN OUR EXPENSES.

THE DEBT SERVICE IS FLAT AS WE EXPECTED YEAR OVER YEAR.

IT'S NOT REALLY INCREASED EVEN THOUGH WE EXPECT WE, WE HAVE NEW BOND, BUT WE REFUNDED SOME OF THE OLDER BONDS.

SO WE HAVE A YEAR OVER YEAR, IT'S RELATIVELY FLAT.

TOTAL REQUIREMENTS WENT UP 8.1 MILLION FOR FISCAL YEAR TO DATE.

AND THAT'S A 4% INCREASE. BUT OUR NET INCOME FOR FISCAL YEAR TO DATE INCREASED 59 MILLION, WHICH IS 96% INCREASE YEAR OVER YEAR. SO THAT'S THE RESULT YEAR OVER YEAR.

AND THEN I WILL TALK ABOUT THE, THE DATA VERSUS BUDGET.

BROADLY, THE REVENUE INCREASED OVER BUDGET. IT'S OVER BUDGET 1% OVER BUDGET FOR AIRLINE REVENUE, 6% OVER BUDGET FOR NON-AIRLINE REVENUE, 3.6% INCREASE OVER BUDGET FOR ALL OF THE REVENUE.

THE EXPENSES ARE COMING ABOUT 1% UNDER BUDGET FOR THE FOR THE FISCAL YEAR AND TOTAL REQUIREMENTS, ALSO 1% UNDER BUDGET. SO OUR TOTAL NET INCOME COMPARED TO BUDGET IS UP $13.4 MILLION.

SO OVERALL, A ROBUST FINANCIAL RESULT FOR THE FISCAL YEAR TO DATE.

THAT'S MY REPORT FOR THE MONTH OF JUNE. THANK YOU FOR YOUR PRESENTATION.

NOW WE'LL OPEN UP FOR COMMENTS OR QUESTIONS FROM THE COMMISSIONERS.

OKAY. WELL THANK YOU FOR YOUR PRESENTATION. OKAY.

[3. Briefing on August 2026 Air Service Update provided by Jamy Kazanoff, Air Service Development]

THAT'S ON PAGE 14. BRIEFING ON AUGUST 2026. AIR SERVICE UPDATE PROVIDED BY JAMIE CAZENOVE.

AIR SERVICE DEVELOPMENT. WELCOME. GOOD AFTERNOON.

COMMISSIONERS, CAN YOU HEAR ME? OKAY. WE HAD A RECORD BREAKING JUNE.

YOU KNOW, THAT'S A 4% INCREASE. THAT'S OUR BIGGEST MONTH EVER.

AND WE JUST HAD 1% MORE SEATS IN JUNE YEAR OVER YEAR.

SO 4% GROWTH WITH 1% SEATS ALL GOING IN THE RIGHT DIRECTION.

THIS THIRD QUARTER, WE'RE UP 3.6% IN JUNE. LIKE I MENTIONED, OUR SEATS WERE UP 1% YEAR OVER YEAR IN JULY.

OUR SEATS ARE UP. WE'RE UP 2%. AND IN AUGUST, THE MONTH WE'RE IN NOW, OUR SEATS ARE UP 5%.

SO THERE'S PLENTY OF TICKETS FOR SALE TO BRING MORE REVENUE AND MORE FOLKS HAPPILY FLYING.

YEAH. CAYMAN AIRWAYS HAD SOME TERRIFIC NEWS FOR AUSTIN.

FOLLOWING THE STRONG PERFORMANCE OF THE ROUTES INAUGURAL SUMMER SEASON, WHICH CONCLUDES AUGUST 16TH, THEY HAVE DECIDED TO EXPAND CAYMAN IN AUSTIN.

SO THEY'LL BE RESTARTING ON DECEMBER 20TH AND PLANNING TO RUN THROUGH THE END OF THE SUMMER.

IN FACT, THIS COMING SUMMER, 27, THEY'LL BE RUNNING TWO TIMES A WEEK VERSUS ONE TIME A WEEK.

SO THANK YOU FOR YOUR SUPPORT OF THE FLIGHT, AND IT'S A GREAT EXAMPLE OF GROWING WHEN WE HAD A NEW CARRIER TIPTOEING IN AND NOW EXPANDING AT THIS AT THIS AMOUNT. DECEMBER 20TH IS THE DATE THAT THEY WILL RESTART AND LOOKING FORWARD TO, YOU KNOW, A NEW LOCATION TO GO TO IN THE, THE WINTER TROUGH, IF YOU WILL, THE WINTERTIME TO MOVE, TO MOVE AND GO VISIT A NEW CITY, A NEW AREA. DELTA DELTA DID HAVE SOME DISCONTINUING SERVICE TO MEMPHIS AND NEW ORLEANS, BUT THEY'VE HAD MANY, MANY, MANY NEW ADS AND MOST RECENTLY ADDED FORT MYERS ON SATURDAYS, SOUTHWEST, SOUTHWEST, ADDED COSTA RICA AND NOT JUST ANY TOWN, BUT THE BIG CAPITAL THERE.

I GUESS IT'S THE CAPITAL IN SAN JOSE. AND ALTHOUGH SOUTHWEST AIRLINES SCHEDULES ARE JUST THROUGH APRIL 5TH NOW, THEY CAN ONLY SELL TICKETS OUT TILL APRIL 5TH.

WE'RE BOOKED IN THERE WITH COSTA RICA FOR THREE, THREE AND A HALF WEEKS OF THAT PERIOD, AND WE'RE HOPEFUL THAT IT WILL CONTINUE ON AS A SOUTHWEST MAKES DECISIONS ABOUT WHAT TO FLY. APRIL 6TH AND FORWARD.

SO FLY TO COSTA RICA, SAN JOSE DEL CABO. AND THE LAST TIME WE HAD COSTA RICA SERVICE WAS TO LIBERIA ON AMERICAN AIRLINES. SOME OF THE NEW FLIGHTS WE HAVE, WE'VE GOT SOUTHWEST TO MEMPHIS, WHICH STARTS OCTOBER 1ST.

[00:25:06]

SOUTHWEST TO SANTA ROSA STARTS OCTOBER 3RD. DELTA TO SAN JOSE, CALIFORNIA.

OCTOBER 6TH. DELTA TO PHOENIX. NOVEMBER 9TH. DELTA TO FORT MYERS, NOVEMBER 21ST.

SOUTHWEST TO DETROIT. MARCH 11TH AND AGAIN. SOUTHWEST TO COSTA RICA ON MARCH 13TH.

OVERALL, AGAIN, AS I MENTIONED, OUR SEATS ARE UP 5% YEAR OVER YEAR.

OUR NONSTOP DEPARTURES ARE UP 5%. NONSTOP DESTINATIONS UP 1%.

LET'S SEE, I ALSO JUST WANT TO HIGHLIGHT OUR CONNECTING TRAFFIC.

BASED ON THE LATEST DATA THAT WE HAVE, WHICH IS JUST FIRST QUARTER OF 2026, ABOUT 14% ARE CONNECTING.

THIS IS AVERAGE OVER ALL CARRIERS. SOME CARRIERS MAY BE CONNECTING MANY, MANY MORE.

SOME ARE NOT CONNECTING WHATSOEVER. BUT THAT'S THAT'S DIFFERENT FOR AUSTIN TO HAVE THIS MANY CONNECTING PASSENGERS THROUGH THE TERMINAL.

AND I WANT TO HIGHLIGHT OUR ONE WAY DOMESTIC FARES.

AUSTIN IS BELOW THE U.S. AVERAGE. THAT'S WHERE WE WANT TO BE.

WE WANT TO HAVE COMPETITIVE FARES, AND WE DO.

CARGO. CARGO IS DOWN 4% AND WAS DIGGING A LITTLE BIT INTO WHY YEAR OVER YEAR IT'S DOWN 4%.

IT'S ALSO DOWN YEAR ENDING IN JUNE FOR THE ROLLING 12.

FEDEX IS, AS I'VE MENTIONED BEFORE, BEGAN TRUCKING MORE.

AND SO WE SAW REDUCTIONS AS OTHER AIRPORTS DID TOO.

WE DID SEE SOME CHANGES WITH ATLAS AND WITH AMAZON FOR SOME OF THOSE MONTHS, BUT THEN THEY'RE POPPING BACK UP.

WE'RE SEEING TOO, AND IT IS JUST A 4% AT THIS POINT DIFFERENCE YEAR OVER YEAR.

BUT WE ARE TRACKING AIR CARGO AND HAVE A GREATER FOCUS ON THIS, THIS REVENUE AS WELL.

THAT'S ALL I HAVE IN THE REPORT. HIGHLIGHT. THANK YOU FOR YOUR PRESENTATION.

WE'LL OPEN UP FOR COMMENTS. QUESTIONS. COMMISSIONERS.

OKAY, THAT'S. GREAT NEWS. CONGRATULATIONS. IT SEEMS LIKE ABSOLUTELY WONDERFUL NUMBERS YOU'RE SHARING AND PERCENTAGES ALL TICKING UP. IS ANY OF THIS IN RELATION TO FILLING A VACUUM CREATED BY SPIRIT, OR IS THAT IS THIS IS THIS, WOULD YOU SAY SEPARATE FROM ALL THOSE OPPORTUNITIES? SPIRIT HAD A VERY SMALL PERCENTAGE OF THE AUSTIN CAPACITY, LESS THAN 1% TOTAL.

THE LAS VEGAS LINE. I READ THAT WAS YEAH, THAT WAS ONE THAT WAS PICKED UP BY A CARRIER.

SO VERY LITTLE OF THIS LARGE INCREASE IS OWING TO THAT, BUT IT IS A PIECE OF IT.

OKAY, COOL. THANK YOU. ANY FINAL COMMENTS? I DO WANT TO THANK YOU FOR THE CHARTS THAT YOU'RE DOING NOW AND CARGO.

I THINK THAT'S REALLY IMPORTANT FOR US TO LEARN AND GROW TO.

THIS IS VERY HELPFUL. AND AS WE KIND OF HELP FOLLOW THAT ALONG.

SO THANK YOU, I APPRECIATE THAT. OKAY. ALL RIGHT.

WE'LL MOVE ON. NEXT ITEM. NEXT ITEM NUMBER FOUR.

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

ACTIVE PROJECTS PROVIDED BY LYNN ESTABROOK, DEPUTY CHIEF DEVELOPMENT OFFICER.

WELCOME. GOOD AFTERNOON COMMISSIONERS. SO I WANT TO START THE PRESENTATION WITH THE YELLOW GARAGE. SO I'LL LET THE TEAM PULL UP TO THE YELLOW GARAGE AND THEN WE'LL IT STARTS FOR THOSE ONLINE.

IT'S THE YELLOW GARAGE STARTS ON PAGE 30. IF YOU WANT TO GO AHEAD AND CYCLE THROUGH TO THE YELLOW GARAGE. IT'S 30 IN THE PACKET. YES.

THERE WE GO. THE SYSTEM'S A LITTLE SLOW TODAY, BUT THAT'S OKAY.

SO THE YELLOW GARAGE IS MOVING ALONG, AND WE ARE LOOKING TO OPEN IT IN THE WINTER, THIS COMING WINTER.

SO THAT'S WINTER OF 2027. SO THIS COMING WINTER.

[00:30:01]

SO THE PICTURES AS I TALK, SO THEY'RE WORKING ON INSTALLING A MECHANICAL SYSTEM, INCLUDING THE ELEVATORS, INSTALLING SOME STEEL FOR ARCHITECTURAL FEATURES.

THEY'VE POURED THE CONCRETE DECK FOR THE BRIDGE.

YOU CAN MOVE TO THE NEXT SLIDE TO SHOW THE IMAGES.

THERE WE GO. THEY ARE WORKING ON THE ROADWAY ENTRY WAY FOR THE ACTUAL PEOPLE WHO PULL INTO THE GARAGE AND THOSE TOLL PLAZAS. SO IT'S REALLY COMING ALONG AND WE ARE QUICKLY LOOKING AT A GARAGE THAT IS COMPLETELY FINISHED.

YOU CAN SEE IN THAT IMAGE, THEY'VE ALSO STARTED TO DO SOME OF THE PAINTING AND STRIPING FOR THE PARKING SPOTS.

SO A REAL GARAGE, IT'S NEARLY THERE. COME, COME THIS WINTER YOU CAN PARK.

SO THAT WOULD BE GREAT. IF YOU WANT TO MOVE TO THE NEXT PROJECT THAT I'M GOING TO HIGHLIGHT IS THE ATRIUM INFILL.

IT'S THE NEXT ONE IN THE DECK. MOVE TO THE NEXT IMAGE PLEASE.

SO IF YOU CAN MOVE TO THE ACTUAL IMAGE WHILE I TALK ABOUT THIS, THIS ONE IS ALSO MOVING ALONG.

THE FLOOR HAS BEEN POURED, THEY HAVE LEVELED THE FLOOR AND THEY ARE GETTING READY FOR THE TERRAZZO, WHICH IS REALLY COOL. WHICH MEANS WE'RE REALLY CLOSE.

THEY'RE WORKING ON FINISHING THE ENTIRE CEILING.

THAT'S BOTH THE CEILING FOR THE BAGGAGE CLAIM AS WELL AS THE CEILING ABOVE.

AND WE WILL BE GETTING ART ALSO. AIP IS WORKING ON ART FOR THE CEILING AREA OF THE, THE NEW FLOOR THAT'S BEEN POURED.

SO IT'S GOING TO BE QUITE I FEEL LIKE A FUN PLACE TO HANG OUT IN LINE BECAUSE YOU WILL HAVE ART ABOVE YOU.

AND WE'RE ALSO WORKING ON SOME ADDITIONAL ELECTRICAL AND MECHANICAL FOR THIS SYSTEM.

SO THERE YOU GO. OOPS. I THINK THEY'RE HAVING SOME TECHNICAL DIFFICULTIES, BUT THE FLOOR IS POURED.

SO THE PICTURE WAS OF A OF A GIANT FLOOR THAT'S BEEN LEVELED AND POURED.

WHICH IS GREAT PROGRESS. THE NEXT ONE I DID WANT TO TALK ABOUT WAS THE VERY NEXT PROJECT WAS THE MIDFIELD TAXIWAYS. WHICH AREN'T FOR THOSE ONLINE.

IT'S THE NEXT PAGE AND THE IMAGES ARE ON PAGE 38.

THERE WE GO. THOSE ARE GREAT PICTURES. SO WHAT'S REALLY COOL IS THAT PICTURE IN THE MIDDLE HE PASSED WHEN HE GOES BACK TO IT.

THERE WE GO. THANK YOU. SO THE PICTURE IN THE MIDDLE, THAT IS A THE FIRST GIANT BEAM FOR THE NEW BRIDGES FOR THE PLANES.

SO REMEMBER THE TAXIWAYS ARE OVER TWO MILES OF WHAT I CALL HIGHWAY FOR PLANES.

AND THEY DO HAVE TWO BRIDGES FOR THOSE PLANES UNDERNEATH.

THEY'RE KIND OF TUNNELS FOR CARS THAT GET TO BOTH OUR FIRE STATION AS WELL AS OUR TOWER.

THAT IS THE FIRST OF MANY BEAMS THAT THEY INSTALLED.

THEY'VE ACTUALLY INSTALLED A NUMBER OF THEM SINCE THIS REPORT WAS PUT TOGETHER.

AND THAT IS MASSIVE MILESTONE THERE. SO THEY ALSO HAVE CONNECTED COMPLETED CONNECTING ON THE EAST SIDE, AND THEY'VE SWITCHED TO THE WEST SIDE TO CONNECT TO OUR EXISTING TAXIWAY SYSTEM.

AND THEY ARE ALSO DOING SOME STORMWATER WORK, WHICH IS THE PICTURE ON THE RIGHT AND DOING SOME ADDITIONAL DIRT MOVING AROUND THESE BRIDGES. AND SO IT IS QUICKLY MOVING AHEAD, AND IT IS ON SCHEDULE TO BE COMPLETED BY THE END OF 2027.

I DID WANT TO TALK NEXT ABOUT THE CUP PROJECT.

SO I'M GOING TO MOVE A COUPLE OF PROJECTS TO THE CENTRAL UTILITY PLANT, WHICH IS ON PAGE 45 FOR THOSE WHO HAVE THE PACKET, AND WE CAN JUST LEAVE IT ON THE COVER PAGE IMAGE.

WE'VE GOT SOME EXCITING NEWS FOR THIS ONE. OUR GUARANTEED MAXIMUM PRICE PACKAGES ARE GOING OUT ON THE STREET ON AUGUST 21ST. SO IF YOU KNOW CONTRACTORS, PLEASE LET THEM KNOW.

AND ON SEPTEMBER 15TH AT 10 A.M., THE CONTRACTOR WHO IS IT'S A, IT'S A DESIGN BUILD.

SO IT'S JAY DUNN IS THE DESIGN BUILDER AND THE DESIGNER IS JACOBS, BUT IT'S A DESIGN BUILD.

SO IT COMES FROM JAY DUNN. THEY WILL BE HAVING AN OUTREACH ON SEPTEMBER 15TH AT 10 A.M.

ON OUR CAMPUS, AT THE AIRPORT, AT OUR CONSOLIDATED MAINTENANCE FACILITY, WHICH IS OFF OF GOLF COURSE ROAD, WHICH IS RIGHT OFF OF 71. SO THEY WILL BE BIDDING OUT WORK FOR THIS PROJECT.

AND THAT WILL EVENTUALLY LEAD TO A GUARANTEED MAXIMUM PRICE FOR THAT PROJECT, WHICH IS A REALLY EXCITING MILESTONE.

SO PLEASE KNOW THAT THAT'S COMING AND GO AHEAD AND TELL EVERYONE YOU KNOW.

[00:35:03]

WE'LL OPEN UP FOR COMMENTS OR QUESTIONS. JUST A QUICK QUESTION.

CLARIFICATION. THANK YOU. GREAT. GREAT UPDATE AS ALWAYS.

JUST FOR MYSELF AND REALLY FOR THE FOLKS THAT ARE FOLLOWING ONLINE, I JUST WANT TO BE CLEAR WHEN YOU HAVE IN YOUR TIMELINES YOU KNOW, Q1, Q2 2027, ARE YOU BASING THAT ON FISCAL YEAR OR CALENDAR YEAR? VERY GOOD QUESTION. THESE ARE CALENDAR YEAR, OKAY, CALENDAR YEAR.

SO IF I'M LOOKING AT THE END OF Q2 2027, WE'RE LOOKING ROUGHLY SUMMERTIME.

YES. TO BE OKAY. JUST WANT TO MAKE SURE. YES, THOSE ARE VERY GOOD QUESTION.

WE DO IT BECAUSE WE KNOW THE PUBLIC LOOKS AT THESE AND THEY'RE MORE FAMILIAR WITH CALENDAR YEAR AS WELL AS CONSTRUCTION NORMALLY IS CALENDAR YEAR.

AND SO THAT'S WHAT THIS IS BASED ON. THANK YOU.

THANK YOU. ANY COMMENTS OR QUESTIONS. OKAY. THANK YOU FOR YOUR PRESENTATION.

YOU'RE WELCOME. ALL RIGHT. COMMISSIONERS YOU'RE GOING TO MOVE ON TO DISCUSSION ACTION ITEMS STARTING WITH NUMBER

[7. Authorize negotiation and execution of a Rental Car Concession Agreement with Sixt Rent A Car, LLC to operate an on-airport rental car concession at Austin-Bergstrom International Airport for an initial term of five years with up to one four-year extension option. Funding: This item is projected to result in annual revenue of $440,000 in the Operating Budget of Austin Aviation. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority-Owned and Women- Owned Business Enterprise Procurement Program). Per 49 Code of Federal Regulations Part 23 Airport Concessions Disadvantaged Business Enterprise (ACDBE) Program, ACDBE participation may not be considered.]]

BUT BEFORE WE MOVE FORWARD, LET'S WE'LL GET A MOTION A SECOND AFTER I READ IT.

AUTHORIZE NEGOTIATION. EXECUTION OF A RENTAL CAR CONCESSION AGREEMENT WITH SEX RENT A CAR, LLC TO OPERATE A ON AIRPORT RENTAL CAR CONCESSION AT AUSTIN-BERGSTROM INTERNATIONAL AIRPORT FOR AN INITIAL TERM OF FIVE YEARS WITH UP TO ONE FOUR YEAR EXTENSION OPTION. FUNDING THIS ITEM IS PROJECTED TO RESULT IN ANNUAL OR ANNUAL REVENUE OF $440,000 AND OPERATING BUDGET OF AUSTIN AVIATION.

NOTE THIS CONTRACT WILL BE AWARDED IN COMPLIANCE WITH CITY CODE CHAPTER 2-9.

A MINORITY OWNED AND WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM FOR 49 CODE OF FEDERAL REGULATIONS, PART 23 AIRPORT CONCESSION DISADVANTAGED BUSINESS ENTERPRISE A CDBE PROGRAM.

AC DBE PARTICIPATION MAY NOT BE CONSIDERED IF WE COULD HAVE A MOTION ON THIS ITEM.

MOTION. CHAIRMAN. THAT'S OKAY. IF YOU WANT TO GO AHEAD AND GET A MOTION AND A SECOND, THEN WE CAN PAUSE AND GO BACK TO A BRIEFING IF YOU WANT, HOWEVER YOU WANT TO DO IT.

ALL RIGHT. THANK YOU. ALL RIGHT. IS THERE A MOTION? MOTION TO APPROVE. OKAY. THANK YOU. COMMISSIONER WILSON. COMMISSIONER BROCK, THANK YOU FOR THE SECOND.

ALL RIGHT. MISS THOMPSON, WOULD YOU LIKE TO DO THIS ACTION ITEM? THEN GO BACK TO A BRIEFING ON THE BUDGET. OKAY.

IS THAT WHAT YOU WANT? YOU WANT ME TO GO AHEAD AND DO THIS ITEM? PERFECT.

THANK YOU FOR LETTING ME JUMP AHEAD OF YOU. COMMISSIONERS, HOW ARE YOU? GOOD AFTERNOON. MY NAME IS TRACY THOMPSON. I'M THE CHIEF COMMERCIAL OFFICER FOR AUSTIN AVIATION, AND THIS IS A VERY EASY AND FUN RCA FOR YOUR RECOMMENDATION TO COUNCIL.

AS EVERY AIRPORT, EVERY COMMERCIAL AIRPORT HAS, WE HAVE A RENTAL CAR PROGRAM HERE AT THE AUSTIN AIRPORT.

IT'S LOCATED. THE RENTAL CAR COMPANIES ARE LOCATED IN THE GROUND TRANSPORTATION CENTER, AND THEY'VE BEEN OPERATING IN THIS NEW GROUND TRANSPORTATION CENTER FOR ABOUT 11 YEARS.

UNDER THE TERMS OF THE AGREEMENTS WITH THE RENTAL CARS, WE OPENED UP FOR A NEW ENTRANT IN YEAR 11.

AND THIS IS YEAR 11, AND WE HAD A SUCCESSFUL SOLICITATION WITH A RECOMMENDED AWARDEE OF SIX RENTAL CAR TO BE ADDED TO THE GROUP OF RENTAL CAR COMPANIES WHO ALREADY SERVE THIS AIRPORT. THEY'RE EXCITED TO JOIN.

WE'RE EXCITED TO HAVE THEM. AND THIS IS A REQUEST FOR COUNCIL ACTION TO AUTHORIZE US TO NEGOTIATE AND EXECUTE THEIR NEW CONCESSION AGREEMENT WITH SIX RENTAL CAR. SO I'M PLEASED TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THIS SOLICITATION OR THE RENTAL CAR PROGRAM.

THANK YOU. THANK YOU. YOU'RE WELCOME. ANY COMMENTS? QUESTIONS? NOT WE HAVE A MOTION A SECOND. ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND.

MOTION PASSES UNANIMOUSLY. THANK YOU, THANK YOU.

ALL RIGHT. THANK YOU. ALL RIGHT. WE'RE GOING TO GO BACK TO SOMETHING THAT'S VERY IMPORTANT. NUMBER FIVE ITEM BRIEFING AUSTIN'S AVIATION FISCAL YEAR 2020

[5. Briefing on Austin Aviation’s Fiscal Year 2026-2027 Budget presented by Anupa Gharpurey, Deputy Chief Financial Officer]

THIS IS ON PAGE 51. THANK YOU. THANK YOU. COMMISSIONERS.

DEPUTY DEPUTY CHIEF OF FINANCE. NORMALLY RAJEEV WOULD RAJIV THOMAS THE CFO, WOULD DO THE PRESENTATION, BUT HE IS RIGHT NOW SITTING AT COUNCIL. ACTUALLY, COUNCIL IS DELIBERATING ON THIS BUDGET.

SO FOR ADOPTION ON FRIDAY, BY FRIDAY, HOPEFULLY SOONER THAN THAT.

SO THIS AND WE ANTICIPATE THAT THIS BUDGET, AUSTIN AVIATION BUDGET WILL BE IN ALL LIKELIHOOD BE ADOPTED AS PROPOSED.

SO THAT'S WHY WE ARE GIVING YOU THIS BRIEFING OF WHAT WE PROPOSED IN OUR BUDGET.

STARTING WITH THE FIRST SLIDE. BROADLY, HERE ARE SOME OF THE MAJOR DRIVERS FOR OUR BUDGET, OUR INCREASE IN REVENUES, OUR, BECAUSE OF OUR EXPECTATION OF OUR PASSENGER TRAFFIC GROWTH.

[00:40:05]

AND WE ALSO INCREASED OUR RATES FOR PARKING AND FOR THE GROUND TRANSPORTATION TAX.

AND THAT IS ALSO DRIVING SOME OF THE INCREASES IN OUR REVENUE ON THE EXPENSE SIDE.

BROADLY, THE MAJOR DRIVERS ARE OUR EXPANSION PROGRAM.

WE NEED RESOURCES FOR THAT. WE'LL HAVE INCREASED OPERATION AND MAINTENANCE COSTS BECAUSE OF THE EXPANDED CAPACITY THAT WE ARE GOING TO HAVE WITH THIS EXPANSION.

WE ALSO ISSUED OUR BONDS IN 2026, WHICH WILL INCREASE OUR DEBT SERVICE.

SO THAT WILL AGAIN ADD TO THE COST. WE ALSO ARE REQUIRING INCREASED MAINTENANCE FOR OUR CURRENT FACILITY AIRPORT FACILITY, WHICH IS OLD, 25 YEAR OLD. AND SO WE HAVE TO MAINTAIN THAT FACILITY AND WE NEED RESOURCES FOR THAT.

AND ALSO ON A GOOD NOTE, OUR VACANCIES ARE IMPROVING.

SO WE HAD BUDGETED 13.5% IN FISCAL YEAR 26 FOR OUR VACANCIES, BUT THEY ARE TRENDING DOWNWARD.

AND WE EXPECT THAT IN 2027 WE WILL HAVE APPROXIMATELY 10% OF VACANCIES.

SO AS WE LOWER OUR VACANCIES OUR COSTS GO UP.

SO THAT'S ANOTHER EXPENSE DRIVER. SO THESE ARE BROAD EXPENSE DRIVERS.

OF COURSE THERE ARE INDIVIDUAL ITEMS. BUT WE'LL TALK ABOUT THOSE A LITTLE BIT ON THE NEXT SLIDE.

SO BEFORE I MOVE ON TO THE NUMBERS I DO WANT TO TALK ABOUT THE ENPLANEMENT FORECAST THAT WE USED TO DETERMINE WHAT OUR REVENUES ARE GOING TO BE FOR THE AIRLINES FROM FISCAL YEAR 2027 THROUGH 2030, WE EXPECT APPROXIMATELY AN AVERAGE 4.2% GROWTH YEAR OVER YEAR FOR OUR ENPLANEMENTS.

AND IN FISCAL YEAR 31. WHEN THE NEW FACILITIES COME ON, WE WILL SEE A SPIKE IN OUR ENPLANEMENTS.

SO THAT'S WHAT WE HAVE ASSUMED IN DEVELOPING OUR BUDGETS.

AND THAT'S WHAT WE WILL BE ASSUMING FOR FUTURE BUDGETS AS WELL.

AS OF NOW. NEXT SLIDE. SO GOING INTO THE NUMBERS AND THE NEXT FEW SLIDES ARE A LOT OF NUMBERS.

SO I'M GOING TO TRY TO GO AS NOT TOO FAST BUT NOT TOO SLOW EITHER.

THIS IS, THIS SLIDE IS YOU KNOW, SHOWING YOU WHAT OUR OPERATING REVENUES ARE GOING TO BE FOR FISCAL, FOR WHICH WE ARE PROPOSING IN OUR BUDGET FOR FISCAL YEAR 27.

THE TOTAL REVENUES FOR FISCAL YEAR 27 ARE $484,000,485 MILLION, APPROXIMATELY, WHICH IS A 14% INCREASE FROM OUR BUDGET OF FISCAL YEAR 26 OF 425 MILLION 57% OF THESE REVENUES WILL BE COMING FROM AIRLINE AIRLINE SOURCES. AND NON AIRLINE WILL BE APPROXIMATELY 42%.

ALL OF THE AREAS WE ARE FORECASTING WILL INCREASE.

WE ARE TRYING TO BE A LITTLE BIT CONSERVATIVE ON THE RENTAL CARS AND ON THE ADVERTISING.

SORRY RETAIL SIDE JUST BECAUSE WE ARE OBSERVING A LITTLE BIT FLATTENING EVEN IN THIS YEAR.

SO WE JUST WANT TO MAKE SURE THAT WE ARE CONSERVATIVE ON THAT SIDE.

WE DON'T KNOW WHAT THE WHAT WHAT IT WILL BE, BUT WE EXPECT OVERALL THE REVENUE TO CONTINUE TO INCREASE.

NEXT SLIDE. ON THE OPERATING EXPENSE SIDE, IF YOU LOOK AT THE BOX AT THE BOTTOM FIRST, YOU WILL SEE THAT THE THE BIGGEST AREA WHERE THE EXPENSES ARE INCREASING IS THE FACILITY MANAGEMENT, OPERATIONS, OPERATIONS AND AIRPORT SECURITY. SO OUR EXPENSE BUDGET IS IS BASICALLY DRIVEN BY THE CORE OPERATION AND FACILITY NEEDS BECAUSE OF THE EXPANSION, AS I MENTIONED TOTAL EXPENSES ARE INCREASING 11.5 MILLION, ABOUT 6%.

SO OUR REVENUE WAS INCREASING. 14. OUR EXPENSES ARE INCREASING.

ABOUT 6% IS WHAT WE ARE EXPECTING FOR OUR BUDGET.

THE TOTAL TOTAL BUDGET IS GOING TO BE 199.1 MILLION FOR THE OPERATING COSTS ONLY.

AND THEN THE NEXT SLIDE, I WILL TALK MORE IN DETAIL ABOUT HOW WE WENT FROM FISCAL YEAR 25 TO FISCAL, I'M SORRY, FISCAL YEAR 26 TO FISCAL YEAR 27, WHAT THE CHANGES WERE.

SO YOU'LL SEE SOME SIGNIFICANT CHANGES IN THE NEXT SLIDE.

SO THIS SLIDE IS A LITTLE BIT DENSE, BUT ESSENTIALLY IT'S TELLING YOU HOW WE WENT FROM FISCAL YEAR 26 BUDGET OF 187.7 7.7 MILLION TO FISCAL YEAR 2011. PROPOSED BUDGET OF 199.1 MILLION.

[00:45:02]

WE ALSO HAVE 25 NEW EMPLOYEES FULL FTES BECAUSE OF THE CONCOURSE M, WHICH WILL BE COMING ONLINE IN FISCAL YEAR 28.

BUT WE NEED TO PREPARE FOR THAT SO THAT WE HAVE, YOU KNOW A LOT OF OPERATIONS AND MAINTENANCE FOLKS THAT WE WILL BE HIRING FOR THAT.

WE ALSO HAD A SEVEN FTES THAT WERE TRANSFERRED TO AUSTIN TECHNOLOGY SERVICES AS PART OF THE CONSOLIDATION.

SO THEY MOVED THERE AND THREE FTES WERE ELIMINATED BECAUSE THEY HAD BEEN EXTENDED THEY HAD EXTENDED VACANCY OF OVER TWO YEARS, WHICH WAS ALSO MANDATED BY THE CITY MANAGER. SO NET INCREASE IN FTES IS 15.

WE ALSO HAD AN HAVE AN INCREASE IN THE TEMPORARY EMPLOYEE BENEFITS COST.

SO LAST YEAR THE TEMPORARY EMPLOYEES WERE PROVIDED BENEFITS PROVIDED THEY WERE EMPLOYED FOR A CERTAIN PERIOD OF TIME.

AND AFTER THAT THE BENEFITS KICKED IN. THAT THRESHOLD WAS LOWERED BY COUNCIL.

AND SO THE TEMPORARY EMPLOYEES GET BENEFITS SOONER.

AND WE HAVE A SIGNIFICANT NUMBER OF TEMPORARY EMPLOYEES.

SO THOSE BENEFIT COSTS INCREASE. AND THEN OF COURSE OUR PERSONAL SAVINGS WILL DECLINE.

AND SO THAT WILL RESULT IN SOME IN ADDITIONAL COST THAT WILL IMPACT US.

SO PERSONAL TOTAL PERSONNEL BUDGET IS INCREASING $4.45 MILLION ON THE CONTRACTUAL SIDE.

BIG INCREASE IS OUR IS IN OUR ELEVATOR ESCALATOR MAINTENANCE CONTRACT OF 1.8 MILLION APPROXIMATELY.

AND THAT IS AGAIN, AS I MENTIONED, OUR LEGACY FACILITIES, THEY NEED TO BE MAINTAINED AND REPAIRED.

AND SO THIS CONTRACT IS IS AN IMPROVED SERVICE CONTRACT.

AND THAT WILL HELP US WITH THE. WE WON'T HAVE AS MANY PROBLEMS WITH ELEVATORS AND ESCALATORS.

THE UTILITY COST IS ALSO INCREASING BECAUSE THE TERMINAL SQUARE FOOTAGE IS INCREASING.

AND ALSO AUSTIN WATER, AUSTIN ENERGY WATERSHED.

THEY RAISED THEIR RATES AND THAT WE WE PAY THOSE THOSE UTILITY COSTS.

SO THAT WILL GO UP. WE ALSO ARE EXPECTING AN INCREASE IN OUR APD COSTS, AIRPORT SECURITY AND RF COSTS BECAUSE OF THE LABOR AGREEMENT, WAGE ADJUSTMENTS THAT THEY HAVE. SO WE HAVE TO PAY THEIR WAGES.

AND WE ALSO EXPECT APD INCREASE OVER TIME. THE RAMP CONTROL OPERATIONS ARE ARE GOING TO BE FOR THE FULL YEAR. IN THE LAST YEAR WE HAD IT ONLY FOR PARTIAL YEAR, SO THAT'S ABOUT A $1 MILLION INCREASE IN OUR RAM COST.

WE DO HAVE SOME SAVINGS FROM THE SOUTH TERMINAL CLOSURE WHICH HAPPENED IN MARCH OF 2026.

SO BECAUSE OF THAT, WE DON'T EXPECT TO HAVE THOSE COSTS IN THE NEXT FISCAL YEAR OBVIOUSLY.

SO WE'LL HAVE SOME SAVINGS THERE. AGAIN, THE COMMODITIES WILL INCREASE BECAUSE OF THE BECAUSE OF EXPANSION IN THE FACILITIES.

PASSENGER ENPLANEMENT WE NEED MORE TOILET PAPER, MORE SOAP.

IT'S JUST ONE OF THOSE THINGS. SO SO THAT THAT IS DRIVING THE COST INCREASES FOR THAT.

SO GIVEN ALL THAT, OUR BUDGET IS INCREASING. THOSE ARE THE MAIN DETAILED SIGNIFICANT CHANGES IMPACTING OUR BUDGET INCREASE.

NEXT SLIDE. SO THIS SLIDE GIVES YOU AN OVERALL FORECAST OVERALL BUDGET SUMMARY OF REVENUE EXPENDITURES AND ALL THE WAY TO NET TRANSFER.

WHATEVER IS REMAINING GETS TRANSFERRED TO THE CAPITAL FUND.

SO OUR REVENUES ARE GOING TO INCREASE, AS I MENTIONED, 14% TO $485 MILLION.

OUR OPERATING EXPENDITURES ARE GOING TO BE 199.1 MILLION.

AND THEN WE ALSO HAVE THE CITY ALLOCATED COSTS OF 22 MILLION.

IT LOOKS LIKE THE CITY ALLOCATED COST IS FLAT.

IT'S NOT THAT THE CITY INTERNAL SERVICE DEPARTMENTS ARE NOT INCREASING THEIR COSTS.

THE COSTS ARE GOING UP, BUT WE ARE BRINGING THE CAPITAL DELIVERY SERVICES COSTS THAT WE USED TO PAY TO A DIFFERENT DEPARTMENT.

WE ARE BRINGING THOSE IN-HOUSE. AND SO AS A RESULT OF THAT, WE ARE NOT PAYING THAT ADDITIONAL ALLOCATION OF ABOUT $3.5 MILLION THAT WE USED TO PAY.

SO THERE IS THE SAVINGS THERE. AND SO WE HAVE IT'S LOOKING LIKE IT'S FLAT FROM PREVIOUS YEAR BUDGET.

WE ALSO HAVE INCREASED DEBT SERVICE. AS YOU CAN SEE, TOTAL DEBT SERVICE IS GOING UP BY ABOUT 12%.

AND SO OUR NET INCOME IS GOING TO GO UP IS GOING TO BE INCREASED 29% TO 173.1 MILLION WILL TRANSFER OUR OPERATING

[00:50:04]

THEY WILL PAY US AND THE REVENUE, AND THEN WE WILL BE TRANSFERRING IT TO MAJOR MAINTENANCE FUND, AND THE NET TRANSFER WILL BE TO THE CAPITAL FUND.

REMAINING WILL GO TO THE CAPITAL FUND. NEXT SLIDE.

OH, OKAY. THIS MIC IS A LITTLE DIFFERENT THAN THE OTHER ONE.

OKAY. WITH OUR BUDGET, WE ALSO SUBMITTED OUR FIVE YEAR CAPITAL PLAN.

SO THERE'S A LOT OF DETAIL IN THE CAPITAL PLAN, BUT I'M GIVING A VERY HIGH LEVEL OVERVIEW.

SO FOR FISCAL YEAR 27, WE HAVE NEW APPROPRIATIONS OF $1.9 BILLION.

AND WE HAVE A SPENDING PLAN SUBMITTED OF $1.1 BILLION FOR FISCAL YEAR 27, FOR FISCAL YEAR 28 TO 31, THAT WILL BE 4.4 BILLION. AND THE BIG YOU KNOW, THE MAJORITY OF THAT WILL BE THE EXPANSION PROGRAM.

OBVIOUSLY, I HAVE LISTED HERE THE TOP CAPITAL PROJECTS WITH THE FISCAL YEAR 27 SPENDING PLANS.

AND YOU CAN SEE THESE ARE A LOT MOST OF THEM ARE ADP PROJECTS.

I THINK ALL OF THEM ARE. I'M NOT EXCEPT FOR EAST CONVERSION MAYBE MIDFIELD TAXIWAYS THE CUP ARRIVAL AND DEPARTURES ROADS FOR THE TERMINAL EXPANSION UTILITY INFRASTRUCTURE CAMPUS WIDE AND THEN CONCOURSE M WHICH WILL GO LIVE.

I THINK IT WILL BE OPEN IN EARLY FISCAL YEAR 2028.

IS THE PLAN AND THEN EASTGATE'S CONVERSION. COMBINED, THESE ARE APPROXIMATELY 50% OF THE TOTAL SPENDING PLAN.

SO THESE ARE THE BIG PROJECTS. AND THEN ON THE LAST SLIDE THE ONE MORE SLIDE.

AND THESE ARE THE PICTURES FOR OF ALL OF THE PROJECTS, WHICH I WILL NOT TALK MUCH ABOUT BECAUSE YOU JUST HEAR FROM LYNN EVERY MONTH ABOUT THOSE.

SO, BUT THESE ARE THE BIG PROJECTS THAT ARE GOING TO BE YOU KNOW, SPENDING ON WHICH WE'LL BE SPENDING DOLLARS NEXT YEAR.

SO THAT IS MY PRESENTATION BROADLY FOR WHAT OUR BUDGET IS.

HAPPY TO ANSWER ANY QUESTIONS. THANK YOU. APPRECIATE THE PRESENTATION.

ANY COMMENTS QUESTIONS REGARDING OUR THE BUDGET PROPOSED BUDGET.

THANK YOU SO MUCH FOR THE PRESENTATION. JUST A FEW.

CLARIFYING QUESTIONS AROUND SOME OF THE ASSUMPTIONS. THE FIRST IS YOU MENTIONED, I GUESS IN THE BRIEFING, THERE WILL BE ANTICIPATED 27% INCREASE IN ADVERTISING.

IS THAT BASED ON THE NEW OPPORTUNITIES THAT THE ATRIUM INFILL WILL PROVIDE, OR WHAT'S THE THINKING WE ARE SEEING INCREASE IN ADVERTISING REVENUE IN THE IN THE LAST ONE YEAR. WE ARE ALREADY OBSERVING THAT ACTUALLY HAPPENING.

SO WE EXPECT THAT THAT TREND WILL CONTINUE. AND AS TRUSTEE WOULD YOU LIKE TO ADD? TRACEY THOMPSON CHIEF COMMERCIAL OFFICER IT'S BOTH, WE'RE GOING TO HAVE NEW LOCATIONS THAT WILL BE OPENING UP AS WE EXPAND THE FACILITIES IN THE ATRIUM AND ELSEWHERE AT THE AIRPORT. BUT THEY'RE ALSO GETTING HIGHER REVENUE FOR THE PRODUCTS THAT WE HAVE FOR THE INSTALLATIONS THAT WE HAVE.

AND THAT'S BASED UPON THE INCREASED EYEBALLS THAT ARE GOING THROUGH THE FACILITY.

SO THEY PRICE THEIR PRODUCT BASED UPON DENSITY, LOCATION, AND I GIVE KUDOS.

I SHOULD HAVE INTRODUCED JADE STARR, WHO'S SITTING HERE TO MY RIGHT.

JADE IS WORKING ON OUR CONCESSIONS PROGRAM ALONG WITH JOHN GALLO, AND SO THEY'RE DOING A REALLY GOOD JOB IN WORKING WITH OUR CONCESSIONS CONTRACTORS TO GET THE MOST REVENUE FOR THE PROPERTIES WE DO HAVE.

SO IT'S A LITTLE BIT OF BOTH. THAT'S FANTASTIC.

AND JUST TWO MORE QUICK ONES. WITH THE DECREASE IN PREDICTED DECREASE IN RENTAL REVENUE.

AND WE'VE WE ANTICIPATE ANOTHER OPERATOR TO TO JOIN THE RANKS.

HOW DO YOU SQUARE THAT CIRCLE. IS THAT THE IDEA THAT WE'RE JUST BEING CONSERVATIVE OR IS THAT JUST A GENERAL TREND.

YEAH. PRIMARILY THAT THAT'S WHAT WE'VE WE JUST OBSERVE THE ACTIVITY THAT WE HAVE SEEN IN THE PAST FEW.

SO WHEN WE ACTUALLY PREPARE THE BUDGET, WE LOOK AT PREVIOUS ACTIVITY AND WE.

WE BASE THAT ON WHAT WE EXPECT THAT WILL HAPPEN WHEN WE PROPOSE THIS BUDGET.

I THINK WE WERE STILL NOT. WE STILL DIDN'T HAVE A NEW ENTRANT, A POTENTIAL ENTRANT IN THE RAC.

SO YES, IT'S A LITTLE BIT CONSERVATIVE AND WE DON'T KNOW WHAT THE VARIANCE WILL BE WITH THE NEW ENTRANT.

SO IT'S BETTER TO JUST BE CAUTIOUS. I THINK I'LL PILE ON TO THAT.

I THINK THAT'S FAIR. AND THE REVENUE THAT IS SHOWN IN THIS RC AYE IS THEIR MINIMUM ANNUAL GUARANTEE.

[00:55:07]

YOU KNOW, THAT COULD GO UP FOR THIS, BUT THERE'S A LOT OF COMPETITION IN GROUND TRANSPORTATION, AS YOU KNOW, NOT, YOU KNOW, WITH TNCS AND OTHER OPTIONS.

SO I THINK BEING CONSERVATIVE IS APPROPRIATE CONSIDERING THE COMPETITION AT OUR AIRPORT FOR THAT.

SO THAT'S THE BASELINE IS THE BAG. YEAH, YEAH.

AND THEN I'LL BE A BROKEN RECORD ON TNC IN FEES IN GENERAL.

YOU HAD MENTIONED IN YOUR BRIEFING THAT THERE'S INCREASED RENTAL AND TNC FEES.

HOW DO THOSE BENCHMARK AGAINST SIMILARLY SITUATED PROGRAMS. THE INCREASED PRICING ON THE, ON THE NCS. I THINK THAT'S ONE OF THE REASONS WE INCREASED OUR RATES BECAUSE WE WERE SIGNIFICANTLY LOWER THAN SOME OF THE OTHER AIRPORTS. AND THAT'S WHY WE RAISED OUR RATES.

OKAY. MAKES SENSE. THANK YOU. YEAH. THANK YOU, COMMISSIONER BROCK.

ANY OTHER COMMENTS? QUESTIONS? OKAY. THANK YOU FOR YOUR PRESENTATION.

THANK YOU. OKAY, COMMISSIONERS WE'RE GOING TO MOVE ON TO DISCUSSION ACTION ITEM SLASH ACTION ITEMS.

[8. Authorize a contract for managed security operations services for cybersecurity monitoring, threat detection, and incident responses for Austin Aviation with Recon InfoSec, Inc. d/b/a Recon Infosec for an initial term of one year with up to four one-year extension options in an amount not to exceed $765,000. Funding: $153,000 is available in the Operating Budget of Austin Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. [Note: Cooperative Agreement contracts are exempt from the City Code Chapter 2-9B (Minority-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established.]]

DOING BUSINESS AS RECON INFOSEC FOR AN INITIAL TERM OF ONE YEAR WITH UP TO FOUR FOR ONE YEAR EXTENSION OPTIONS AND AMOUNT NOT TO EXCEED $765,000. FUNDING IS $153,000. IS AVAILABLE IN THE OPERATING BUDGET OF AUSTIN AVIATION.

FUNDING FOR THE REMAINING CONTRACT TERM IS CONTINGENT UPON AVAILABLE FUNDING AND FUTURE BUDGETS.

NOTE COOPERATIVE AGREEMENT CONTRACTS ARE EXEMPT FROM THE CITY CODE.

CHAPTER 2-9B MINORITY OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM.

THEREFORE, NO SUBCONTRACTING GOALS WERE ESTABLISHED.

I BELIEVE CHRIS BULLOCK IS GOING TO PRESENT ON THIS.

GOOD AFTERNOON COMMISSIONERS. CHRIS BULLOCK, IT MANAGER SENIOR.

SO THIS IS A SERVICE WE'RE USING. IT IS A THIRD PARTY MANAGED SERVICE THAT PROVIDES US WITH CYBERSECURITY MONITORING 24 BY SEVEN, 365. SO, YOU KNOW, WE WOULD, WE WOULD LOVE TO HAVE THIS INTERNALLY, BUT THIS IS A SERVICE THAT WE HAVE TO MANAGE OUTSIDE OF OUR FTES.

SO THIS, THIS CONTRACT IS BEING PUT IN PLACE TO MONITOR ALL OF OUR SECURE OPERATIONS FOR ALL THE ENDPOINTS AND SERVER SYSTEMS INSIDE THE AVIATION DEPARTMENT. SO AGAIN, THIS CONTRACT IS FOR ONE YEAR WITH FOUR YEAR OPTIONS.

WE'RE DOING THIS. WE CURRENTLY HAVE THIS VENDOR IN PLACE NOW.

SO THIS CONTRACT IS IN PLACE. WE'RE EXTENDING THIS TO SEE WHAT OUR OPTIONS ARE MOVING WITH OTHER VENDORS IN THE FUTURE.

SO WE HAVE SOME SOME LEEWAY AND SOME TIME FRAME TO FIND OUT IF THIS IS THE RIGHT AVENUE.

AND ALSO PARTNERING WITH THE CISO'S OFFICE WITH A T S DOWNTOWN TO ALIGN WITH THEIR SERVICES.

THANK YOU. COMMISSIONER, BEFORE WE MOVE TO COMMENTS OR QUESTIONS, COULD WE HAVE A MOTION ON THIS ITEM? COMMISSIONER SPENCE, THANK YOU FOR THE MOTION.

IS THERE A SECOND? OKAY. THANK YOU. COMMISSIONER WILSON, WE HAVE A MOTION AND A SECOND.

ALL RIGHT. WE'LL OPEN UP FOR COMMENTS OR QUESTIONS.

OKAY. ALL RIGHT. NOW, THERE'S NONE. LET'S TAKE A VOTE.

ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND. THERE WE GO.

MOTION PASSES. UNANIMOUSLY. THANK YOU. ALL RIGHT.

[9. Authorize an amendment to a contract for continued use of Veeam Software for offsite backup for Austin Aviation with CDW LLC d/b/a Sirius Computer Solutions, LLC, CDW Government, to increase the amount by $280,000, for a revised total contract amount not to exceed $404,925. Funding: $22,000 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 contract was awarded in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods and services required for this contract, no subcontracting goals were established.]]

DOING BUSINESS AS SERIOUS, SERIOUS COMMUTER COMPUTER SOLUTIONS, LLC, CDW GOVERNMENT TO INCREASE THE AMOUNT BY $280,000 FOR REVISED TOTAL CONTRACT AMOUNT, NOT TO EXCEED $404,925.

FUNDING IS 22,000. IS AVAILABLE ON THE OPERATING BUDGET OF AUSTIN AVIATION.

FUNDING FOR THE REMAINING CONTRACT TERM IS CONTINGENT UPON AVAILABLE FUNDING IN THE FUTURE BUDGETS.

NOTE THIS CONTRACT WAS AWARDED IN ACCORDANCE WITH CITY CODE.

CHAPTER 2-9 BE MINORITY OWNED AND WOMEN OWNED BUSINESS ENTERPRISE PROCUREMENT PROGRAM FOR THE GOODS AND SERVICES REQUIRED FOR THIS CONTRACT.

NO SUBCONTRACTING GOALS WERE ESTABLISHED. IF WE COULD HAVE A MOTION AND A SECOND.

THANK YOU, COMMISSIONER HOWDEN. IS THERE A SECOND? OKAY, COMMISSIONER WILSON, THANK YOU. SO WE HAVE A MOTION A SECOND.

[01:00:02]

SO THIS IS VEEAM SOFTWARE. WE ARE WE USE THIS INTERNALLY FOR OUR BACKUP SOLUTIONS OF OUR INFRASTRUCTURE SERVERS FROM EMAIL TO FILE SERVERS AND ANY OTHER INFRASTRUCTURE THAT IS WITHIN THE AVIATION DEPARTMENT.

WE'RE ASKING FOR ADDITIONAL FUNDING ON THIS EXISTING CONTRACT TO ALIGN WITH OUR DISASTER RECOVERY PLAN, TO HAVE OFFSITE BACKUPS FOR ANY DISASTER THAT WE'D BE HAVING HERE.

SO AGAIN, WE'RE ALIGNING THIS WITH THE ATS CISO'S OFFICE WITH DISASTER RECOVERY.

SO THE ADDITIONAL SPEND AND AUTHORITY ON THIS CONTRACT IS FOR THAT.

AGAIN, THE CONTRACT WAS ALREADY IN PLACE. WE'RE JUST LOOKING TO ADD ADDITIONAL SERVICES, WHICH IS WHY WE'RE ASKING FOR THE ADDITIONAL FUNDING.

THANK YOU. YES, SIR. ALL RIGHT. ANY COMMENTS QUESTIONS REGARDING THIS ITEM? OKAY. ALL IN FAVOR, PLEASE RAISE YOUR RIGHT HAND.

OKAY. MOTION PASSES UNANIMOUSLY. THANK YOU. MISS YOU LIKE FOR THAT PRESENTATION.

ALL RIGHT. THE NEXT ITEM ON THE AGENDA IS DISCUSSION ITEMS.

[Items 10 - 12]

IF ANY COMMENTS AT THIS POINT. OKAY. WE'LL MOVE ON.

[FUTURE AGENDA ITEMS]

YEAH. HAPPY TO. GOOD AFTERNOON. COMMISSIONERS.

JASON ALEXANDER, DEPUTY CHIEF AIRPORT AFFAIRS.

A COUPLE ITEMS THAT WE'RE CURRENTLY TRACKING. I KNOW WE STILL OWE COMMISSIONER TRIMBLE AN UPDATE ON THE.

PIPELINE BECAUSE WE JUST HAD THAT CONVERSATION LIGHT RAIL TO THE AIRPORT.

SO KNOW THAT THAT HAS NOT FALLEN OFF OUR RADAR.

WE'VE HIT SOME SCHEDULING SNAGS, BUT WE HOPE TO GET SOMETHING FOR YOU PRETTY QUICK ON THAT.

I THINK THERE WAS A REQUEST AS WELL TO HEAR MORE ABOUT THE USE AND LEASE AGREEMENT, KIND OF A QUICK EDUCATIONAL PRESENTATION ON THAT.

AND I'LL BE WORKING WITH TRACY TO, TO SECURE AN AGENDA SPOT FOR THAT.

I BELIEVE THOSE ARE THE ONLY TWO CHAIR THAT WERE STILL OUTSTANDING ON.

WE DID COVER THE BAT1 TODAY, SO WE'VE GOTTEN THAT ONE OFF THE LIST.

BUT WE'LL HAPPILY ENTERTAIN ANY OTHER REQUESTS THAT MAY COME UP IN THIS ITEM.

THANK YOU JASON. WE'LL OPEN UP TO THE COMMISSIONERS IF THERE ARE ANY FUTURE AGENDA ITEMS THAT THAT YOU WOULD LIKE TO HAVE DISCUSSED IN, IN NEAR FUTURE. OKAY. ALL RIGHT. WELL, THANK YOU FOR THAT, JASON, FOR THE UPDATE AND OKAY. BOARD. THE NEXT REGULAR SCHEDULED SCHEDULED MEETING IS SEPTEMBER 9TH, 2026.

IF THERE'S NO OBJECTIONS, WE WILL NOW ADJOURN AT 405.

OKAY. WELL THANK YOU. THANKS, EVERYBODY.

* This transcript was compiled from uncorrected Closed Captioning.