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[CALL TO ORDER]

[00:00:06]

>> IT IS 3:35. OUR ILLUSTRIOUS CHAIRMAN GRAY IS OUT OF TOWN. I GOT A CALL.

AS YOU CAN TELL, I DON'T HAVE MUCH OF A VOICE TODAY.

[MINUTES]

WE WILL TRY TO GET THROUGH THIS AS QUICKLY AS WE POSSIBLY CAN.

DID EVERYBODY GET A CHANCE TO LOOK AT THE MINUTES FROM LAST MONTH? I COULD ENTERTAIN A MOTION.

>> I MOVE WE STEP MINUTES OF FEBRUARY 8 OF 2023.

>> I'LL SECOND THAT MOTION. >> A MOTION AND SECOND.

ALL THOSE IN FAVOR? SAY AYE.

>> AYE. >> ALL THOSE OPPOSED, SAME SIGN.

MOTION PASSES. LET'S GO TO OUR AGENDA ITEMS ON

[3. Airport Management Reports]

AIRPORT MANAGEMENT REPORTS. >> YES.

SO LOOKING AT THE STATISTICAL REPORTS, LET ME GET TO THAT PAGE TWO. YOU CAN SEE OUR-- THEY ARE STARTING TO PICK UP. WE ARE UP 11% FOR THE MONTH OF FEBRUARY. THAT IS A PRETTY BIG IMPROVEMENT. OVERALL.

AND THAT ENVOY IS UP 13%. THAT IS ENCOURAGING GOING INTO THIS CALENDAR YEAR. WHEN WE SAW A DROP IN '22 OVER '21. SO IT IS LOOKING GOOD.

ENVOY, THEY ARE GIVING US ABOUT A TWO-WEEK OUTLOOK AT THE LOAD FACTORS. THE NUMBER OF PASSENGERS VERSUS THE NUMBER OF SEATS. AND IT IS IN THE 75%-80% AVERAGE RANGE ON A DAILY BASIS. SO SO IT IS LOOKING GOOD RIGHT NOW. SO IN ADDITION TO THE ENPLANEMENTS. PARKING REVENUE.

THAT IS PRETTY IMPRESSIVE FOR THE MONTH.

UP 24% FOR THE YEAR TO DATE. OVER LAST YEAR.

GOOD NUMBERS. GOOD NUMBERS.

BUT AS ALWAYS, THE CAR RENTAL IS KIND OF-- ARE STRANGE.

I DON'T KNOW WHY. SO ANYWAY, THEY ARE DOWN 9.4%.

NOW, REMEMBER, THEY ARE TWO MONTHS BEHIND, SO WHERE WE SAW SOME DRAG LAST YEAR-- LAST MONTH FOR OUR JANUARY NUMBERS, THAT IS WHAT YOU ARE SEEING. MAYBE WHEN WE GOAT OUR APRIL MEETING AND WE PRESENT THE FEBRUARY NUMBERS FOR THE COMPANIES, YOU WILL SEE THAT JUMP.

WE WILL SEE. IT STANDS TO REASON THAT THAT WILL FOLLOW. BUT AGAIN, THEY DO ROSHT TWO MONTHS BEHIND. WHEREAS THIS IS A MONTH BEHIND.

SO ANY QUESTIONS ON THAT? OKAY.

OH, I WANTED TO POINT OUT SOMETHING, TOO.

UNDER AIRPORT OPERATIONS, THAT IS THE FIRST LITTLE BOX.

AIR CARRIER VS. AIR TAXI. AIR CARRIER IS THE MAIN LINE TYPE AIRCRAFT. THE 175 FITS INTO THAT CATEGORY.

THE AIR TAXI CATEGORY IS WHAT THE 145 RAN.

WE WILL CONTINUE TO SEE THAT NUMBER DROPPED.

>> REGULATORY AND LEGISLATIVE. >> THERE IS NOTHING NEW TO REPORT. I WILL BE GOING TO D.C. WEEK AFTER NEXT TO MAKE THE ROUNDS AGAIN ON CAPITOL HILL.

WE WILL BE HITTING MORE OF OUR AIRPORT INDUSTRY'S LEGISLATIVE AND REGULATORY TALKING POINTS ON THOSE MEETINGS.

BUT STILL KIND OF TOUCHING ON LOOKING FOR FUNDING FOR, IN PARTICULAR, OUR ROAD THROUGH AREA B.

TO GET THAT FUNDED. WE WILL BE TALKING ABOUT THE UPCOMING F.A.A. RE-AUTH RE-AUTHORIZATION, LOOKING AT SOME OF THE PRIORITIES THAT OUR INDUSTRY THROUGH THE AMERICAN ASSOCIATION OF AIRPORT EXECUTIVES HAS PASSED ON TO US AS TALKING POINTS, BASICALLY. SOME THINGS IMPORTANT TO OUR INDUSTRY. WE WILL BE PASSING ON THAT INFORMATION TO OUR FRIENDS AND CONGRESSMAN ARLINGTON'S OFFICE.

OR BUDGET CHAIR ARRINGTON OFFICE.

>> CURRENT PROJECTS. >> ALL RIGHT.

[00:05:03]

SO ON THE TERMINAL IMPROVEMENTS, I JUST WANTED TO GIVE YOU GUYS A BRIEF-- JUST A REAL QUICK LOOK AT WHAT THE TERMINAL LOOKS LIKE RIGHT NOW BECAUSE OF THE CHANGES THAT ARE COMING.

AND YOU ARE NOT GETTING TO SEE THEM UNLESS YOU ARE FLYING OUT.

SO YOU REMEMBER THIS VIEW OF THE TERMINAL.

THAT IS WHAT THE GIFT SHOP TH THERE-- HERE IS WHAT IT LOOKS LIKE TODAY. THE GIFT SHOP IS GONE.

SO IT OPENED THAT SPACE UP. AND YES, WE KNOW WE HAVE A SPACE TO FILL. WE WILL FILL THAT WHEN THE CONSTRUCTION IS DONE. AND ALL THE PAINTING IS DONE.

THE PAINTING IS BEING DONE. THE GATE AREA.

THAT IS GOING TO BE OUR NEXT COUPLE OF PHOTOS.

SO THIS IS WHAT IT LOOKED LIKE THREE WEEKS AGO IN THAT AREA.

AND THEN THIS IS WORK IN PROGRESS LOOKING TO THE WEST-- I'M SORRY. TO THE EAST JET BRIDGE RIGHT NOW. YOU CAN SEE WHERE THEY ARE PRIMING THE CEILING. SECTIONS OF THE CEILING AND THOSE COLUMNS. THAT LOOK WILL IMPROVE.

THE COVERAGE OF THE PAINT WILL IMPROVE.

AGAIN, IT IS JUST PRIMING IT. IT IS A SLOW PROCESS.

THEY HAVE STRIPPED THE WALLS OF THE WALLPAPER THAT IS IN THERE.

ANYWAY, IT IS COMING ALONG. ONE MORE PHOTO.

THESE ARE THE REST ROOMS. (LAUGHTER) ANYWAY, IT IS GOOD TO HAVE THAT GUTTED, AND THEY WERE IN THERE TODAY.

THE PLUMBERS WERE WORKING TODAY. ANYWAY, WE WILL START TO SEE THAT, START TO GET FRAME UP AND FINISHED OUT OVER THE NEXT FEW WEEKS. WE WILL CONTINUE TO GIVE YOU UPDATED PHOTOS. THAT WAY YOU WILL HAVE-- WILL BE UP TO DATE ON HOW THINGS ARE COMING ALONG.

SO FAR, EVERYTHING IS REALLY GOING WELL.

THIS IS WHERE I EXPECTED TO HAVE CHANGE ORDERS AND SUCH BECAUSE OF PIPE CONDITIONS. I MEAN, THIS IS 50-SOME-ODD-YEAR-OLD PIPES. RIGHT NOW EVERYTHING IS LOOKING GOOD. WE GOT THROUGH THE DEMO WITHOUT ANY BIG CHANGE ORDERS. I AM LOOKING AT A CHANGE ORDER FOR CEILING TILE REPLACEMENT IN THE BAGGAGE CLAIM AREA.

AND THAT WASN'T INCLUDED IN THE PROJECT, BUT I'LL LET YOU KNOW WHAT WE DECIDE TO DO WITH THAT. I HAVE A PRICE FROM OUR CONTRACTOR, AND I MAY LOOK AT ANOTHER OPTION FOR THAT AS WELL.

SO I THINK-- I HAVE ONE QUESTION.

I WASN'T HERE LAST MONTH. WHERE ARE WE PUTTING THE PEOPLE THAT WOULD ORDINARILY BE IN THE HOLDING AREA?

WHERE ARE YOU DIVERTING THEM TO? >> SO ALL THAT PAINTING IS BEING DONE AT NIGHT. THAT SEATING AREA IS OPEN TO OUR PASSENGERS DURING NORMAL BUSINESS HOURS.

SO ALL OF THE SEATING IS STILL IN PLACE.

THE CONTRACTOR IS COVERING IT. COVERING EVERYTHING EVERY NIGHT AND UNCOVERING IT. AND WIPING THE SEATS DOWN.

SO THAT WAY IT IS AVAILABLE FOR EVERYBODY TO USE FOR THAT FIRST FLIGHT OUT. ALL RIGHT.

THAT KIND OF GIVES YOU AN IDEA OF OUR TERMINAL IMPROVEMENTS.

UNDER WAY. THE AIRCRAFT CHARGING STATION, NOTHING HAS HAPPENED ON THAT. WE HAVEN'T HAD OPEN DATES ON THAT. OUR CIP, AGAIN, I DID HAVE A TALK WITH OUR F.A.A. PROGRAM MANAGER ON TUESDAY.

YES. MONDAY OR TUESDAY THIS WEEK.

THIS WEEK. AND SO WE ARE LOOKING TO REVISE THE ESTIMATE FOR THE PROJECTED COSTS FOR THAT NEXT EXPANSION OF THE TERMINAL. AND I WAS-- WHILE WE WERE COMFORTABLE WITH THE COST IN OCTOBER, ESTIMATED ABOUT $24 MILLION FOR THAT NEXT PHASE OF TERMINAL WHICH WOULD BE THE TERMINAL EXPANSION, I'M NOT COMFORTABLE WITH THAT COST NOW.

AFTER GOING THROUGH THIS LITTLE BITTY PROJECT AND SEEING HOW MUCH MORE IT CAME IN, OVER OUR ESTIMATES, WE ARE GOING TO BUMP THAT UP. HAVING CONVERSATIONS WITH FOLKS ABOUT THAT. AND WHAT THAT MEANS FOR, YOU KNOW, ADDITIONAL GRANT MONEY AND THINGS LIKE.

THAT FORTUNATELY, WE HAVEN'T DONE A GRANT APPLICATION YET.

WE WON'T DO THAT UNTIL LATE SUMMER.

FOR A VERY COMPETITIVE GRANT APPLICATION.

WE STILL BELIEVE WE WILL BE IN GOOD SHAPE TO BE COMPETITIVE FOR THAT. AT THAT POINT.

[00:10:09]

WE HAVE SELECTED A CONTRACTOR. WE ARE WAITING ON A PRE-CONSTRUCTION MEETING TO BE HELD FOR THAT.

THEY ARE KIND OF ASSESSING THE AREA AND DOING THAT KIND OF THING. THE CAR RENTAL QUICK-TURN FACILITY, THERE IS STILL NOTHING HAPPENING ON.

THAT THAT IS ON US. WE ARE JUST NOT MOVING ON THAT RIGHT NOW. WHAT WE WILL DO IS AT THE SAME TIME-- WELL, BEFORE WE MOVE ON THAT, WE WILL PROBABLY GO AHEAD AND DO A REQUEST FOR PROPOSALS FOR THE OPEN CAR RENTAL COUNTER THAT IS IN THERE. WHERE HERTZ USED TO BE.

BID THAT OUT. AND GET A NEW-- BECAUSE I'M PRETTY CONFIDENT WE WILL HAVE A NEW OPERATOR THERE, ANOTHER CAR RENTAL COMPANY TO FILL IN THAT SPACE.

WE HAVE TALKED TO A COUPLE OF COMPANIES WHO ARE INTERESTED IN THAT. AND SO WE WILL GET THOSE-- ALL OF THOSE CONTRACTS RENEWED BECAUSE AVIS AND ENTERPRISE ARE CURRENTLY IN HOLDOVER FOR THEIR LEASE.

WE WILL GET A NEW LEASE FOR ALL THREE, INCLUDING A NEW ONE THAT WILL COME IN WITH THAT BID. THEN WE WILL START MOVING AGAIN ON THE CONSOLIDATED SERVICE CENTER.

>> WHEN DID HERTZ PULL OUT? >> IT WAS EITHER-- I WAS GOING

SAY LATE '20 OR EARLY '21. >> ON THIS CHART, IT SHOWS THEY STILL HAVE 41% OF THE REVENUE. HOW IS THAT POSSIBLE?

>> THEY THEY'VE GOT SOMETHING FOR US.

OKAY. .

>> OH. ON THE PIE CHART.

ON THE ACTUAL NUMBERS -- >> RIGHT.

YEAH. I WAS JUST WONDERING IF THERE IS NOT THAT COMING IN, BUT THERE IS STILL 41% COMING IN SOMEPLACE.

OKAY. >> YEAH.

WE WILL GET THAT CORRECTED. THANK YOU.

>> OUTSTANDING MAINTENANCE AND REPAIRS: WELL, IT ALL COMES BACK TO ESCALATORS. AS USUAL.

WE HAVE AN ESCALATOR COMPANY OUT YESTERDAY TO LOOK AT THE UP ESCALATOR INSIDE. THEY GOT IT RUNNING.

IT RAN THE WHOLE TIME THEY WERE THERE.

AND THEY WERE TRYING THEIR BEST TO MAKE IT STOP, LIKE IT DID FOR US. NOPE.

RAN FINE. PROBABLY LESS THAN AN HOUR AFTER THEY LEFT, IT QUIT RUNNING. (LAUGHTER) WE CLOSED THAT ONE DOWN AGAIN. THE DOWN ESCALATOR INSIDE IS STILL RUNNING. IT SOUNDS LIKE IT COULD EXPLODE AT ANY TIME, BUT THEY ASSURE US THAT IT IS OKAY.

IT IS FINE. IT MAKES A LOT OF CREAKING AND SQUEAKING NOISES. IT IS FINE.

EVERYTHING ELSE SEEMS TO BE GOING OKAY.

AS FAR AS MAINTAINING THE TERMINAL AND OPERATING CONDITIONS. PARTICULARLY, FOR THOSE THINGS S THAT OUR CUSTOMERS SEE. WE HAVE ONE OF THE-- THE EAST REVOLVING DOOR IS DOWN AGAIN. WE HAVE BEEN WAITING ON A SWITCH WHICH WE RECEIVED THAT TODAY. MAINTENANCE WILL BE WORKING ON THAT FIRST THING IN THE MORNING TO GET THAT NEW SWITCH INSTALLED. SHOULD BE BACK IN BUSINESS FOR THAT. TOMORROW MORNING.

AND BACK IN BUSINESS. OH, AGAIN, WE ARE WAITING TO HEAR AS THAT STARTS MOVING THROUGH THE BUDGET PROCESS, THROUGH THE LEGISLATURE. I HAVEN'T HEARD ANYTHING IN THE LAST TWO WEEKS REALLY. UPDATES.

EVERYTHING SEEMS TO BE GOING OKAY.

THEY HAVE EVERYTHING THEY NEED FROM US.

SO WE ARE ON STAND-BY TO PROVIDE ANYTHING NEW FOR THEM.

>> YES. >> BUSY MONTH SINCE I HAVE SEEN YOU LAST. AS WE SAW IN OUR LAST MEETING, OUR FRESH NEW COMMERCIAL, IT IS RUNNING.

I HOPE YOU HAVE CAUGHT IT HERE AND THERE.

AND RUNNING AT PEAK HOURS DURING, OF COURSE, HEAVY NEWS.

MORNINGS AND AFTERNOONS. ALSO CURRENTLY RIGHT NOW, WE HAD AN OPPORTUNITY TO USE THE WESTERN ATHLETIC CONFERENCE AS A MARKETING PLACE. SO ACU IS WITH THE CONFERENCE IN VEGAS. THEY DID LOSE YESTERDAY, UNFORTUNATELY. WE GET A PART OF THEIR PACKAGE.

WE ARE RUNNING A STADIUM BANNER SO WHEN YOU ARE ACTUALLY

[00:15:05]

WATCHING THE GAME AND YOU SEE THE BIG BANNER RUNNING ACROSS A BASKETBALL GAME, YOU ARE SEEING THE ABILENE REGIONAL AIRPORT FOR THE WEEK DURING WOMEN'S AND MEN'S WAC TOURNAMENT RIGHT NOW.

WE ARE EXCITED ABOUT THAT. AND THAT ALSO COMES WITH, OF COURSE, ON-LINE BANNER ADS, THINGS LIKE THAT THROUGHOUT THE ENTIRE MARCH MADNESS SEASON. WHICH WILL GO UNTIL THE FIRST OF APRIL. ALSO TSA PRECHECK POP-UP ENROLLMENT CENTER IS COMING TO ABILENE.

TO ABI. I WILL BE HERE MARCH 27-31.

OUR FRIENDS OVER AT THE CVB WERE KIND ENOUGH TO SEND US INFORMATION ON THAT AS WELL. I HOLLERED AND SAID, WE HAVE TO GET YOU IN. THEY SAID, WE CAN GO IN THREE WEEKS. FORECAST I SAID WE WILL TAKE YOU. THEY WILL BE BE HERE AT THE AIRPORT FROM THE 27-31. ALSO, WE GOT WIND THAT THE B-29 FORTRESS, A GORGEOUS SUPER FORTRESS, I SHOULD CALL IT, IS GOING TO COME TO THE AIRPORT. DURING INTERESTINGLY, ENOUGH, THE WEEKEND OF THE BIG COUNTRY AIR-FEST.

FOR WHATEVER PURPOSES. THEY WILL COME TO US.

THEY WILL OFFER FLIGHTS AND TOURS AND ALL THE THINGS THAT THEY DO WITH OUR FANTASTIC WORLD WAR II RELICS.

CIVIL AIR PATROL IS BRINGING THAT IN, I THINK.

NO? NOT.

SORRY. ON THEIR OWN.

ANYWAY, WE WILL HAVE MORE INFORMATION.

THEY WILL BE HERE A WEEK, ACTUALLY, I GUESS.

FIVE DAYS. FOUR DAYS.

>> 21-25. >> YEAH.

>> MARCH? >> I'M SORRY.

APRIL. THAT IS APRIL.

AND WE JUST CONTINUE TO STAY IN TOUCH WITH BUOYS.

THAT IS GOOD. THAT IS ALL.

>> CAN YOU ALLUDE TO-- ON THE TSA PRE-CHECK, IS THAT FOR PEOPLE TO COME IN AND GET REREGISTERED IN.

>> YES. SORRY.

IT IS TO ENROLL FOR THE PRE-CHECK PROGRAM.

THE ENROLLMENT PROCESS. YES.

>> THAT IS MARCH 27 THROUGH APRIL 31.

>> NO. JUST MARCH 31.

JUST THAT WEEK. THEY ARE RUN 9:00 TO 5:00 MONDAY THROUGH FRIDAY. IT IS ENCOURAGED TO GET ON-LINE AND BOOK THOSE APPOINTMENTS. THEY BOOK SO QUICKLY THAT WALK-INS REALLY AREN'T FEASIBLE THESE DAYS.

PAUSE YOU COULD BE STUCK WAI WAITING.

THAT IS WHAT THEY HAVE TOLD US. AS OF LAST WEEK, THEY HAD BOOKED 100. THEY CAN TAKE ABOUT 400.

>> CHECK ON-LINE AT OUR WEBSITE IN.

>> YES. AND/OR TSA.GOV\ SLASH PRECHECK.

THANK YOU. >> AIR SERVICE ISSUES.

>> SO WE PUT THIS ON A COUPLE OF MONTHS AGO.

AS WE WERE WATCHING, YOU KNOW, THE THREE TO TWO DEPARTURES A DAY AND WHAT THEY WERE DOING TO OUR ENPLANEMENTS.

WE ARE STILL WATCHING THAT, OF COURSE.

NOW YOU CAN SEE THEY HAVE RECOVERED.

AND EVEN EXCEEDED EXPECTATIONS WITH THOSE FLIGHTS.

WE ARE SEEING THE PUBLIC STILL FLY US DESPITE THE LACK OF FREQUENCY. THAT WAS OUR BIGGEST CONCERN.

GETTING USED TO THAT. IT IS SOMETHING THAT SEEMS TO BE OVERCOMING. I MEAN, WE WILL CONTINUE TO LEAVE THE ON THERE. I DON'T REALLY HAVE ANY NEW CONCERNS TO BRING TO YOU WITH THAT.

>> THERE IS NO ADDITIONAL FLIGHTS?

>> SO IN MAY, MAY OR JUNE, WE ARE SEEING FOUR IN THE SCHEDULE.

BUT WE HAVE BEEN LED IN THAT DIRECTION EARLIER THIS YEAR FOR MARCH, AND IT DIDN'T HAPPEN. THEY PULLED THAT FOURTH OUT.

>> YEAH. >> WE WILL CONTINUE TO WATCH THAT. WE WILL CONTINUE TO TALK WITH-- TRY TO TALK WITH AMERICAN WHEN THEY GET THEIR FEET ON THE GROUND AND ARE ABLE TO HAVE CONVERSATIONS AGAIN.

>> THAT IS THE BIGGEST HOLDUP. THAT FOURTH FLIGHT JUST MEANS YYOUR STAY IN DFW IS NOT AN EXTENDED STAY.

THERE IS THE STAY AND THE EXTENDED STAY.

>> RIGHT. RIGHT.

>> WE DID CATCH ON WEDNESDAYS, THEY ADDED-- WEDNESDAYS, UNFORTUNATELY, ARE THE DAYS THAT THEY REALLY PUT US BACK TO TWO.

WEDNESDAYS, THEY HAVE GIVEN US BACK AN ARRIVAL.

WE HAVE ADDED A THIRD ARRIVAL BACK.

IT IS NOT A DEPARTURE. IT IS AN OVERNIGHT.

WHAT WE CALL AN ORN. WE HOPE THAT THEY ARE WATCHING.

WE HOPE THAT THEY ARE SEEING OUR LOADS AND THAT IS, THERE IS A VIEBLGHT THERE TO ADD MORE PLANES.

IN MARCH, THEY SAW THAT OPPORTUNITY.

>> STILL HEAVY LOADS IN MONDAYS AND FRIDAYS?

>> OH, YEAH. >> YEAH.

>> THERE IS NO CHANGE? >> NOT AS OF YET.

>> OKAY. >> AND ONE-- ALSO, THE OTHER

[00:20:02]

REASON WE PUT THIS ON THERE OR WE WERE WATCHING THE MAINTENANCE DELAYS AND CANCELLATIONS ON THE DEPARTURES GOING OUT AND THAT HAS STABILIZED OVER THE LAST REALLY TWO WEEKS.

I HAVEN'T BEEN AWARE OF ANY IN THAT TIME FRAME.

I WAS TALKING WITH AN AMERICAN EMPLOYEE YESTERDAY.

HE SAID YES, IT HAS IMPROVED A LOT.

>> YEAH. >> DON'T KNOW WHAT WAS HAPPENING DURING THAT PERIOD THAT WAS REALLY FRUSTRATING FOR US AND OUR PASSENGERS. IT HAS ABATED SOMEWHAT.

AT LEAST FOR NOW. >> WHILE WE ARE STILL ON AIRLINES, ON THE PRICING REPORT. WE NOTICED THAT IT IS-- IT IS STAYING COMPETITIVE. IN THAT THESE ARE THE NUMBERS WE PREFER TO SEE. THIS TYPE OF COMPETITION, IF YOU WILL, $100, A LITTLE OVER, THAT IS SORT OF A MORE PALATABLE.

OBVIOUSLY, AGAIN, IT IS PROVING THIS 30 DAYS OUT.

IT IS TIGHT. WE HAVE TO BOOK OUT FURTHER.

YOU KNOW, OUR FOLKS IN THIS AREA, AGAIN WITH THE SEATS.

I DIDN'T WANT TO OMIT THAT THAT REPORT IS IN THERE.

IT IS PRETTY GOOD. >> AIR SERVICE ISSUES.

WE WILL MOVE ON TO FUNDING OPPORTUNITIES FOR LAND

DEVELOPMENT AND REVISED ROADWAY. >> YEAH.

I DON'T HAVE AN UPDATE ON THAT AT THIS POINT.

BUT WE WILL CONTINUE TO LEAVE THAT ON THE AGENDA.

THAT WAY WHEN WE DO, WE WILL BE ABLE TO HAVE SOMETHING AND BRING THAT TO YOU. AT LEAST, YOU KNOW, AN UPDATE,

[4. Committee Reports and Appoint Chairs]

ANYWAY. >> AGENDA ITEM NUMBER 4.

COMMITTEE REPORTS AND CHAIRS. >> YEAH.

WE DID NOT HAVE A FACILITIES AND PLANNING COMMITTEE MEETING FOR MARCH. WE WILL TRY TO RESCHEDULE THAT FOR APRIL. I'M WORKING WITH THEM AND GRAY TO GET THAT SCHEDULED FOR SOMETIME IN APRIL.

BECAUSE WE REALLY DO NEED TO HAVE THAT COMMITTEE MEET AND DISCUSS SOME ITEMS MORE IN DEPTH THAN WE CAN GET INTO HERE.

WE WOULD OF COURSE, BRING THAT TO THE BOARD.

NO COMMITTEE MEETINGS TO REPORT. >> DISCUSSION TO APPROVE THE

[5. Discussion and Action to Approve a Recommendation for an Operating and Concession Agreement with Turo. ]

RECOMMENDATION OF A CONCESSION AGREEMENT.

>> THIS WAS ON THE AGENDA LAST MONTH.

I JUST WASN'T READY TO BRING THAT TO YOU FOR ACTION.

WAY WANTED TO ATTEND A TEXAS COMMERCIAL AIRPORT ASSOCIATION BOARD MEETING WHERE OTHER AIRPORTS ARE DEALING WITH TOURO RIGHT NOW. SOME OF THOSE ARE DEALING WITH THEM IN A LEGAL WAY. TOURO STARTED OPERATING ON THEIR AIRPORT AND WAS NOT-- WAS OPERATING OUT OF THE PARKING LOTS WITHOUT LETTING THEM KNOW THAT THEY WERE DOING THAT, AND AIRPORTS WANT TO KNOW WHAT'S HAPPENING ON THEIR PROPERTY.

BUT ALSO HAVE A SHARE OF THAT REVENUE SINCE THEY ARE PROVIDING THAT INFRASTRUCTURE FOR THEM. SO THERE WERE NUMEROUS COMPLAINTS ABOUT THE WAY TOURO INTRODUCED THEMSELVES TO THE AIRPORT COMMUNITY. THACHES READY MUCH NATIONWIDE.

NOT JUST TEXAS, IN PARTICULAR. BUT WE DID NOT HAVE THAT PRO PROBLEM, AND SO TWO YEARS AGO, AROUND TWO YEARS AGO, WHEN I FIRST HEARD ABOUT TOURO, AT A TCA MEETING, I DOWNLOADED THE APP TO KEEP AN EYE ON THINGS. AND I HADN'T SEEN ANY ACTIVITY WHERE SOMEBODY WAS DROPPING OFF A VEHICLE AT THE PARKING LOT.

AND THEN LATE LAST YEAR, WE WERE APPROACHED BY A TOURO HOST, A LOCAL PERSON WHO IS GOING TO RENT THEIR CAR OR CARS TO PASS TO CUSTOMERS. SO WHEN I SAY THEY ARE GOING TO RENT THEIR CAR, IT IS A PEER-TO-PEER CAR RENTAL COMPANY.

IT IS LIKE AIR BNB FOR VEHICLES. YOU CAN DO IT A COUPLE OF DIFFERENT WAYS. SAY, YOU ARE FLYING OUT AND YOU ARE GOING TO BE GONE FOR A MONTH, YOU PARK YOUR CAR AT THE AIRPORT. YOU ARE A TOURO HOST.

YOU PUT YOUR CAR UP TO BE RENTED DURING THAT TIME.

YOU MIGHT HAVE ONE PERSON. YOU MIGHT HAVE FIVE PEOPLE WHO RENT THAT VEHICLE DURING THAT TIME.

AND SO THAT TRANSACTION WOULD JUST HAPPEN THROUGH THE AIRPORT PARKING LOT. IT WOULD BE-- SO THEY DO THAT THROUGH A GIO-FENCE. WE WILL GET OUR 10% COMMISSION.

WHICH IS WHAT TOURO HAS OFFERED US: UNLESS THEY ARE STANDARD.

THAT IS WHAT WE GET FROM OUR CAR RENTAL COMPANIES AS WELL.

10%. THERE WILL NOT BE A MINIMUM ANNUAL GUARANTEE LIKE WE HAVE WITH TRADITIONAL CAR RENTAL COMPANIES. WE WILL GET THAT 10% FROM THEM.

[00:25:02]

TOURO WILL PAY ALL TAXES, STATE AND LOCAL TAXES.

FOR THAT TRANSACTION. AND THEN THEY WILL REMIT MONTHLY TO US AND PROVIDE A MONTHLY REPORT ON WHAT WAS RENTED FROM AIRPORT PROPERTY. SO WHAT WE HAVE AGREED TO DO IS LET THEM OPERATE FROM OUR PARKING LOT, AND THAT IS FOR TRANSACTION THAT IS DON'T OCCUR FACE-TO-FACE.

WHERE YOU HAVES A HOST-- WHERE YOU DON'T HAVE A HOST HANDING A KEY OVER TO A CUSTOMER RIGHT THERE IN PERSON.

SO THEY WILL HAVE TO-- WE WILL ALSO ALLOW THEM TO DO A CURBSIDE EXCHANGE. EITHER A PICKUP OR RETURN.

IF IT IS FACE-TO-FACE. THEY STILL CANNOT LEAVE A VEHICLE UNATTENDED CURBSIDE.

THAT HOST WILL HAVE TO BE THERE TO MEET THAT PASSENGER AS THEY ARE ARRIVING ON THEIR FLIGHT. IT WILL BE INTERESTING TO SEE HOW THAT WORKS. BUT THAT AGREEMENT, AGAIN, IS A 1% COMMISSION. 10% COMMISSION.

MOST OF THE TRANSACTIONS WILL OCCUR IN THE PARKING LOT.

THEY WON'T ALLOW THEM ON THE LOWER-LEVEL CURBSIDE.

IT IS ON THE LOWER-LEVEL CURBSIDE FOR THE FACE-TO-FACE

TRANSACTION TO OCCUR. >> ARE THE TOURO PEOPLE GIVING SPECIAL CONSIDERATION TO THE PARKING?

>> NO. THEY WILL STILL PAY-- THE CUSTOMER WILL PAY-- THE RENTER WILL PAY FOR THAT VEHICLE TO LEAVE THE PARKING LOT AT OUR NORMAL RATES.

>> THAT CAR HAS BEEN THERE FOR FIVE DAYS? THEY ARE PAYING FOR THE FIVE DAYS PRIOR TO?

>> THAT IS CORRECT. >> OKAY.

>> AND THAT IS ANOTHER REASON WHY I'M OKAY WITH NOT DOING A MINIMUM ANNUAL GUARANTEE. LIKE WE DO WITH THE CAR COMPANIES. CAR RENTAL COMPANIES.

BECAUSE THERE IS THE CHANCE OF GETTING THAT-- YOU KNOW, A LITTLE BIT MORE REVENUE OUT OF THE PARKING LOT.

SO... WHAT I RECOMMEND IS A THREE-YEAR AGREEMENT. ONE YEAR WITH TWO ONE-YEAR OPTIONS. LET'S SEE HOW THIS GOES.

WITH THAT ONE YEAR AND THEN THE OPTIONS FOR YEAR TWO AND THREE.

BECAUSE THIS IS A RELATIVELY NEW TECHNOLOGY.

YOU KNOW, I DON'T KNOW HOW WELL IT IS GOING TO TAKE OFF.

I DON'T THINK WE LOSE ANYTHING BY DOING IT THIS WAY.

I'M NOT READY TO GO TO A FIVE-YEAR AGREEMENT LIKE WE WOULD WITH OUR CAR RENTAL COMPANIES.

>> ANY OTHER DISCUSSION? QUESTIONS?

ENTERTAIN A MOTION? >> I'LL MAKE A MOTION WE GO INTO

AGREEMENT WITH TOURO. >> I'LL SECOND.

>> A FIRST AND A SECOND. ALL THOSE IN FAVOR, SAY AYE.

>> AYE. >> ALL THOSE OPPOSED, SAME SIGN.

MOTION PASSES. >> THANK YOU.

[6. Discussion and Action to Approve a Recommendation for a Capital Projects Implementation Services Contract with Kutchins & Groh.]

>> MOVING TO BE AGENDA ITEMS NUMBER 6.

DISCUSSION AND ACTION TO APPROVE A RECOMMENDATION FOR A CAPITAL

PROJECT, CONTRACT. >> SO THEY HAVE DONE SEVERAL CONSULTING PROJECTS WITH US. ONE IS OUR PASSENGER FACILITY CHARGE WHICH THEY ARE CURRENTLY WORKING ON NOW.

THEY HAVE A CONTRACT WITH US NOW TO CLOSE OUT OUR PASSENGER FACILITY CHARGE NUMBER THREE. AND DO THE APPLICATION FOR FACILITY CHARGE NUMBER FOUR. THE PFC IS A DLRVE 4.50 CHARGE ON ANY TICKET PURCHASED OUT OF ABILENE.

ON OUR AIRLINE. ON AMERICAN.

BUT ALSO ON THE CHARTER FLIGHTS THAT SELL TICKETS TO THE PUBLIC AS WELL. SO WE HAVE THAT CONTRACT WITH THEM. THEY ALSO DID OUR RATES AND CHARGES TODAY BACK IN 2019. WHICH GOT US A TREMENDOUS LEG UP KAND CATCH-UP ON OUR RATES AND CHARGES, PARTICULARLY FOR THE PUT US IN REALLY GOOD SHAPE. WE GOT THAT APPROVED.

BY YOU AND COUNCIL, AND AMERICAN IN DECEMBER OF 2019.

BEFORE THE PANDEMIC. THAT WAS A REAL HELP GOING INTO THE PANDEMIC. SO I HAVE BEEN WORKING-- THE COMPANY HAS AN ENGINEERING FUNG. THEY EVER AN ARCHITECTURAL FUNCTION WITHIN THE CONSULTING FIRM AS WELL AS THE FINANCIAL SIDE. SO I USE THEM ALSO FOR WHAT'S CALLED AN INDEPENDENT FEE ESTIMATE WHICH IS AN F.A.A.

REQUIREMENT THAT WHEN WE HAVE A PROFESSIONAL SERVICES CONTRACT FOR ENGINEERING OR ARCHITECTURE, WE HAVE TO HAVE AN INDEPENDENT FIRM THAT IS NOT GOING TO BE DOING ANY OF THAT WORK FOR US LOOK AT THE CONTRACT WITH THE FIRM THAT IS GOING TO BE DOING THE ARCHITECTURAL ENGINEERING WORK.

[00:30:01]

GO BACK AND LOOK AT THAT FEE, TO MAKE SURE THAT IT IS A MARKET RATE FEE. AND THEY WILL MAKE A RECOMMENDATION THAT, YOU KNOW, MAYBE THAT FEE-- THAT PROPOSED FEE IS TOO HIGH. AND THE IFE WILL COME BACK AND SAY, OKAY, IT IS-- WE THINK IT IS GOING TO BE THIS.

THIS LOWER AMOUNT. THEN IT IS UP TO AIRPORT STAFF TO GO BACK AND NEGOTIATE THESE SCOPE-- THE FEE PROPOSAL WITH THE CONTRACTOR, THE PROFESSIONAL SERVICES CONTRACTOR TO LOWER THAT FEE AND GET CLOSE TO IT. IF NOT GET IT EXACTLY.

WE HAVE USED THEM FOR THAT. THIS CAPITAL PROJECT'S IMPLEMENTATION CONTRACT WILL INCLUDE THE IFES FOR THE NEXT SEVERAL YEARS ON THE UPCOMING PROJECTS.

IT ALSO INCLUDES HELPING ME WITH MANAGEMENT OF THE GRANTS, AND I DON'T MEAN GRANT MANAGEMENT ON A DAILY BASIS OR, YOU KNOW, PAYING-- OR THEY DO OUR GRANT REPORTS.

ANYTHING LIKE THAT. I'M TALKING ABOUT HELPING WITH CAPITAL PLANNING BECAUSE WE HAVE SO MUCH GOING ON.

THE CAPITAL PLANNING PART OF IT, DEALING WITH THE F.A.A., TRYING TO GATHER ALL THESE FUNDS, ALL THESE BUCKETS OF FUNDS THAT WE WILL NEED TO FUND THE PARKING LOT-- I'M SORRY.

THE TERMINAL EXPANSION, IN PARTICULAR.

SINCE THIS IS GOING TO BE A LARGE PROMPT.

BUT EVEN THE LAND USE AREAS, TOO.

HAVE BEEN HAD NOLING ON THIS FOR OVER A YEAR.

I THINK WE ARE THERE. I SPOKE TO OUR F.A.A. PROGRAM MANAGER EARLIER THIS WEEK. HELP AGREES.

THAT WOULD BE-- THAT WOULD BE PROVIDING A GOOD SERVICE TO US.

IT IS ELIGIBLE FOR AIP OR AIRPORT IMPROVEMENT GRANTS THROUGH THE F.A.A. SO YOU KNOW, WE CAN DO THAT OUT OF OUR CURRENT GRANTS. THE PROPOSED FEE IS NOT TO EXCEED $90,000. THAT WAS $81,000 IN GRANT FUNDS.

THEN $9,000 IN CITY FUNDS. SO THAT WOULD BE THE OUT-OF-POCKET FOR THIS. IF WE GOT TO THAT $90,000 MAX.

REALLY AND I THINK BECAUSE OF THE WORK THAT THEY WILL BE DOING FOR US, YOU WILL PROBABLY HAVE BRAD COME TALK TO THE BOARD AT SOME POINT IN THE FUTURE WHEN WE ARE PRESENTING A PLAN MOVING FORWARD FOR FUNDING THE TERMINAL PROJECT.

YOU WILL PROBABLY GET TO HEAR HIM AT SOME POINT IN THE FUTURE.

>> $90,000 BASE CONTRACT. THE ENGINEERING AND ARCHITECTURAL FEES, THAT WOULD BE ANCILLARY, AWAY FROM SEPARATE

CHARGES. >> SO THE $90,000 IS THE NOT TO EXCEED OF $90,000. AND THE CONSULTING FEE, THAT ALSO INCLUDES THE IFE WHERE THEY EVALUATE A PROPOSAL FROM AN ARCHITECT OR ENGINEER FOR THOSE DESIGN SERVICES.

THEY WOULD NOT BE DOING THAT DESIGN SERVICE FOR US.

THEY WILL BE EVALUATING THOSE SCOPE AND FEE PROPOSALS FOR US.

>> WE DON'T PAY OUR 10% UNTIL THE TOTAL-- THEY KNOW HOW MUCH HAS BEEN SPENT. YOU SAID IF WE HIT THAT $90,000.

>> YEAH. HE WILL BILL US ON AN HOURLY BASIS OR A WORK BASIS. IF I GIVE THEM A FEE PROPOSAL FROM OUR ARCHITECT FOR THE DESIGN OF OUR TERMINAL PROJECT, THEY WILL LOOK AT THAT, AND IT MIGHT BE A $5,000 FEE FOR THE IFE. SO YEAH.

WE WILL PAY THAT. WE WILL PAY THAT.

THEY WILL BILL US ON AN HOURLY PER-WORK BASIS.

>> ANY FURTHER DISCUSSION OR QUESTIONS?

I WILL ENTERTAIN A MOTION. >> I'LL MAKE A MOTION TO APPROVE THE CAPITAL PROJECTS IMPLEMENTATION SERVICES CON

CONTRACT. >> SECOND.

>> WE HAVE A MOTION AND A SECOND.

ANY OTHER DISCUSSION? ALL THOSE IN FAVOR, SAY AYE.

>> AYE. >> ALL THOSE OPPOSED, SAME SIGN.

MOTION PASSES. >> ALL RIGHT.

GREAT. THANK YOU.

>> WE WON'T BE GOING INTO EXECUTIVE SESSION TODAY.

WE CAN KIND OF SKIP RIGHT PAST THE EXECUTIVE SESSION AND RIGHT INTO THE DEVELOPMENT BOARD MEETING SCHEDULED FOR APRIL 12.

[00:35:01]

AT 3:30 HERE AT CITY HALL. THE NEXT MARKETING DEVELOPMENT SUBCOMMITTEE MEETING SCHEDULED FOR MAY 3.

YOU SAID WE ARE GOING TO DO A PLANNING COMMITTEE.

>> YEAH. I'M TRYING TO SCHEDULE THAT W

WITH-- SOMETIME IN APRIL. >> OKAY.

>> IF ANYBODY DOESN'T HAVE ANY MORE QUESTIONS, WE WILL CONSIDER

THIS MEETING ADJOURNED. >> THAT WAS ONE OTHER THING.

JUST REMINDED ME. I WANTED TO LET YOU ALL KNOW THAT LARRY GILL WILL BE RECEIVING A KEY TO THE CITY TOMORROW MORNING AT THE CITY COUNCIL MEETING AT 8:30 HERE.

. >> 8:30.

>> KIND OF RECOGNIZING AGAIN HIS EFFORTS AND HIS CONTRIBUTION TO THE COMMUNITY THROUGHOUT HIS TENURE HERE.

>> THEY DO THOSE PRETTY MUCH OUT OF THE GATE.

AT 8:30. >> YES.

THEY DO ALL THE RECOGNITIONS AT THE BEGINNING.

THAT WAS SOMETHING THAT WAS ADDED JUST THIS WEEK, I THINK,

TO THE COUNCIL AGENDA. >> GOOD.

>> THAT IS NICE. >> IF THERE IS NO BUSINESS, WE WILL CONSIDER THIS MEETING

* This transcript was compiled from uncorrected Closed Captioning.