Aug 14, 2024 Airport Development Board Meeting

[CALL TO ORDER]

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>> WE WILL CALL THIS MEETING TO ORDER. ALL RIGHT. I WANT TO INTRODUCE OUR VISITORS. WE HAVE A PLETHORA OF WONDERFUL VISITORS IN THE AUDIENCE. IT LOOKS LIKE WE ARE ALL HERE AND

[MINUTES]

FAVOR, -- >> AYE.

[3.Airport Management Reports]

>> OPPOSED? HEARING ON, WE WILL MOVE FORWARD. AIRPORT MANAGEMENT REPORTS. STATISTICAL REPORTS, ONE OF THE FAVORITE

HIGHLIGHTS OF THE DAY. >> LATELY HAS BEEN, BECAUSE WE

HAVE GOOD NEWS. >> I LIKE GOOD NEWS .

>> IT CONTINUES. STILL, OUR EMPLOYMENTS FOR JULY WERE UP 10% . THAT IS REVENUE PASSENGERS, THE NONNA -- THOSE ARE TYPICALLY AIRLINE EMPLOYEES, WHO FLY FOR FREE. WE ARE UP, OVERALL, 10% FOR THE MONTH. AND THEN UP AT 26% YEAR TO DATE. REALLY STRONG GROWTH. LOAD FACTOR OF 70% FOR ENVOY THROUGHOUT THE MONTH . THAT IS GOOD. THEY WANT TO SEE A MINIMUM OF 70% IN ORDER TO HIT THEIR LOAD FACTOR GOALS.

PARKING LOT REVENUE CONTINUES TO IMPRESS . UP 19% FOR THE MONTH. AND THEN 47.44% FOR THE YEAR. OUR CAR RENTALS ARE SHOWING DOWN. I'M POINT THE QUESTION THAT. I DO NOT THINK THAT IS QUITE ACCURATE. WE WILL HAVE TO CLARIFY THAT AND GET

THAT BACK TO YOU. >> HERTZ IS WRONG .

>> IT IS NEW. THERE IS NOTHING TO COMPARE IT TO.

>> I GET THAT . ON THE PRICING REPORT, 14 DAYS OUT, WE ARE AVERAGING $487 . ON 30 DAYS OUT, $404. OUR BIGGEST COMPETITION IS -- THEY ARE AT $255.14 DAYS OUT AND $279 ON 30 DAYS OUT. THAT CONTINUES TO BE A FRUSTRATION FOR US. BUT NOT A WHOLE LOT WE CAN DO. WE BRING IT TO THEIR ATTENTION. WE TRY TO GET THEM TO DO SOMETHING. WHEN THEY ARE FLYING LIKE THEY ARE RIGHT NOW, WITH GOOD LOADS, THEY ARE NOT VERY MOTIVATED TO DROP THE PRICE. THEY THINK THEY ARE GETTING WHAT THE MARKET WILL BEAR. REGULATORY AND LEGISLATIVE ISSUES . THERE IS NOT A LOT. CONGRESS IS IN RECESS NOW, AUGUST RECESS. WE DO NOT EXPECT A LOT TO HAPPEN FOR THE REST OF THIS YEAR, REALLY. BEING AN ELECTION YEAR. THEY WILL COME BACK INTO SESSION FOR SEPTEMBER, FOR A FEW WEEKS. AND ARGUE AND NOT REALLY ACCOMPLISH ANYTHING. AND THEN GO HOME AND CAMPAIGN . AND THEN WHEN THEY COME BACK, WE WILL SEE WHAT KIND OF MADNESS WE HAVE WHEN THEY COME BACK AFTER THAT. AFTER THE ELECTION . ANYWAY. NOT EXPECTING A BUDGET , FISCAL YEAR 2025 BUDGET FOR THE FEDS ANYTIME THIS YEAR OR AFTER OCTOBER 1ST.

[00:05:03]

>> IS THERE A REASON FOR THAT?

>> I KNOW. I DARE NOT GIVE MY OWN OPINION ON THAT. THEY ARE COMMUNICATING. THEY ARE SAYING, BEACH -- BE PATIENT. THEY DO NOT HAVE THEIR ACT TOGETHER, BASICALLY, TO ISSUE THEIR

FISCAL YEAR 2024 GRANTS . >> THERE IS NO TIMETABLE ?

>> YOU WOULD THINK IT WAS BY THE END OF THIS FISCAL YEAR. I AM HOPING THAT IS WHAT IS GOING TO HAPPEN. AGAIN, THEY ARE SENDING OUT AN EMAIL EVERY NOW AND AGAIN THAT SAID, WE ARE WORKING ON IT. WE KNOW THIS CATEGORY OF GRANT , YOU ARE WAITING ON IT . ANYWAY . HOPEFULLY BY THE SEPTEMBER MEETING WE WILL HAVE A GRANT AWARD FOR YOU TO CONSIDER. ON OUR CURRENT PROJECTS, TERMINAL IMPROVEMENTS AND EXPANSION . WE ARE WORKING WITH PARK HILL, TO COME UP WITH A PHASING PLAN. WE CONSIDER PHASING THIS. WE KNOW THAT WILL ULTIMATELY COST US MORE MONEY TO DO THAT. WE ARE GOING TO GIVE THE CITY COUNCIL AN OPTION OF THE PLAN YOU SAW, WHICH IS TO DO EVERYTHING AT ONE TIME, UNDER ONE CONTRACT. WHICH HAS AN ESTIMATED SAVINGS OF ABOUT $11 MILLION. OR WE WOULD FACE IT, AND WE WOULD LIKE TO GIVE THEM THAT OPTION. -- GET OUR PRIORITY, EXPANDING THE GREAT AREA -- GATE AREA , AND THEN SUCCEEDING PHASES, TAKE CARE OF THE OTHER PRIORITIES WE HAVE. YES, THAT WILL COST MORE IN THE LONG RUN, BUT IT MIGHT MAKE IT A LITTLE BIT EASIER FOR COUNSEL TO ACCEPT THE OVERALL EXPENDITURES OF THE CITY'S PART IN THIS. WE WANT TO GIVE THEM AN OPTION , WE MET WITH THE CITY MANAGER YESTERDAY. AND LOOKING AT PRESENTING THAT TO COUNSEL AT THE COUNCIL RETREAT , THE JANUARY OR FEBRUARY TIMEFRAME. THAT GIVES US TIME TO FINISH UP THE OPTIONS, BRING THAT BACK TO YOU TO LOOK AT. AND HAVE IT READY TO GO TO COUNCIL AFTER THE FIRST OF THE YEAR.

>> THAT WAS ONE OF MY QUESTIONS, THE PHASING OF THAT PROJECT. THERE IS NO WAY TO DO THE WHOLE PROJECT WITHOUT SOME A MASSIVE PHASING, AND KEEP THE AIRPORT OPEN. IT WOULD BE VERY INTERESTING TO SEE HOW THEY FEES THAT PROJECT -- PHASE THAT

PROJECT. >> EVEN UNDER ONE CONTRACT, WOULD HAVE PHASES WE HAVE TO STEP THROUGH. I AM TALKING ABOUT CONTRACT AWARD PHASES. WE WOULD HAVE TO BID OUT DIFFERENT PHASES. OUR INTENT IS TO DO THIS AS AN CONSTRUCTION MANAGER AT RISK PROJECT, THAT WAY IT GIVES -- THE ABILITY TO HAVE INPUT IN THE DESIGN PROCESS AND TELL US WHAT IS CONTRACTIBLE AND AN EASIER WAY, MATERIALS AND THINGS LIKE THAT. GIVING

ALL THE INPUT EARLY ON. >> AND HELP TO GET REAL-TIME

COST AS WELL. >> CORRECT.

>> FROM THE PEOPLE SEEING IT ON THE STREET.

>> THERE WILL BE MORE COMING BACK TO YOU IN A COUPLE OF MONTHS OR SO, FOR CONSIDERATION . WE MIGHT EVEN HAVE A SPECIAL

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>> THE AIRCRAFT WRAP PROJECT -- AIRCRAFT WENT -- RAMP. WE FOUND OUT THE TYPE OF CONTRACT THE CITY ATTORNEY WANTED TO USE, A BEST VALUE BID, IS NOT ACCEPTED -- WE HAVE TO GO BACK AND ESSENTIALLY REBID THIS NOW. ALL WE WERE DOING WITH ADVERTISING.

AND THEN WE HAD A PRE-BID MEETING FOR TOMORROW. THAT HAS BEEN COUNT THAT SPOKE CANCEL. WE WILL RESET THE CLOCK, AND THEN HAVE BID OPENING SEPTEMBER 19TH. WILL BRING THAT TO THIS BOARD AT YOUR OCTOBER MEETING. AND HAVE AN AWARD FROM THAT POINT. IT'S AN UNFORTUNATE SETBACK. WE ARE TRYING TO BE AS DILIGENT AS IT CAN. WORKING WITH TEXT. -- IN THIS TYPE OF SITUATION IS DIFFERENT FOR US. WE WERE NOT REALLY FAMILIAR WITH WHAT THEY WILL EXCEPT -- -- SAID THEY WOULD NOT.

>> THAT DOES NOT CHANGE THE SPECIFICATIONS OF THE PAVING OR

ANYTHING, RIGHT? >> IT DOES NOT. BUT THE CITY ATTORNEY SAID, WE CANNOT JUST DO THAT CHANGE THROUGH AN ADDENDUM, WE HAVE TO REDO IT. IT WAS ADVERTISED AS BEST VALUE BID. TO KEEP US OUT OF HOT WATER, WE DO WITH THE CITY

ATTORNEY TELLS US TO DO. >> WHO WAS IN THE DESIGN

ENGINEER? >> GARBER. I SENT THIS FAX AND EVERYTHING TO TXDOT A FEW WEEKS AGO. THEY DID NOT SAY ANYTHING ABOUT IT. THEY NOW HAVE. WE ARE IN A LITTLE BIT OF A DILEMMA .

WE HAVE TO DO IT THIS WAY. IT IS A LOT OF MONEY TO PUT AT RISK OF NOT GETTING. I AM JUST GLAD WE CAUGHT IT WHEN WE

COULD. >> WHO BROUGHT THAT TO OUR ATTENTION? ONE OF THE VENDORS?

>> ACTUALLY, -- FIVE -- TXDOT DID .

>> WHEN YOU ORIGINALLY SENT IT OUT, THEY DID NOT REVIEW IT?

>> THEY SAID EVERYTHING LOOKS GOOD. SOMEBODY ELSE LOOK AT IT,

I GUESS. >> SO IS THE BEST VALUE, THE TYPE OF CONTRACT. WHAT ARE THEY REQUIRING IN ITS PLACE?

>> A STRICT LOW BID. THERE IS NO CONSIDERATION OF A BEST VALUE. BEST VALUE HAS MORE SUBJECTIVE ITEMS IN IT. THE LOW

BID IS JUST THE BID PRICE. >> THAT IS WE AS THE CITY ARE

MAKING A DECISION ON? >> YES. BECAUSE THAT IS WHAT TXDOT ACCEPTS. ANYWAY, WE BELIEVE THERE IS A LOT OF INTEREST OUT THERE IN THIS PROJECT FROM CONTRACTORS. WE ARE EXCITED ABOUT THAT NUMBER WE WILL HAVE . AND MAKE IT A REALLY COMPETITIVE BID . ANY OTHER QUESTIONS ON THAT?

>> THE CONVENIENCE STORE THING, THEY ARE ON HOLD ETSY -- UNTIL

THIS GETS SETTLED? >> WE CAN TALK ABOUT THAT MORE IN EXECUTIVE SECTION -- SESSION.

>> THE FIREFIGHTING AIRCRAFT, THAT IS JUST WRAP. IT DOES NOT INCLUDE ANY BUILDINGS, IS THAT RIGHT?

>> CORRECT. JUST RAMP . >> CAR RENTAL QUICK TURN FACILITY. WE WILL TALK IN A LITTLE MORE DETAIL ABOUT WHERE WE ARE WITH THAT IN ITEM SIX , WHEN WE TALK ABOUT THE CUSTOMER FACILITY CHARGE . WE HAD TWO MEETINGS WITH THE CAR-RENTAL COMPANIES OVER THE LAST SIX WEEKS. TO TALK ABOUT THE FACILITY ITSELF, THE DESIGN OF IT. NOW THAT WE HAVE THREE

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THE $5 MILLION. >> I GUESS THE OBVIOUS QUESTION IS, WOULD WE HAVE COLLECTED SO FOR THAT SO FAR? DOES THE RATE

GO UP? >> THAT IS WHAT WE WILL DISCUSS SHORTLY. ITEM SIX IS ABOUT THAT.

>> OUTSTANDING MAINTENANCE AND REPAIR . I'VE GOT A LITTLE BIT OF A SURPRISE FOR YOU THAT IS NOT EXACTLY HOW I LIKE TO DO THINGS. AND I HAVE NEVER DONE THIS WITH YOU GUYS BEFORE. IN JUNE, WE ASKED SCHINDLER, AN ELEVATOR COMPANY TO GET US SOME QUOTES TO REBUILD THE ESCALATORS, INSIDE. WE HAVE THAT INFORMATION NOW . WE GOT THAT LAST WEEK . WE HAD A TOTAL OF $318,270 TO REBUILD BOTH ESCALATORS . THAT IS HIGHER THAN WHAT I EXPECTED, BUT THAT IS WHAT THEY GAVE US. AND THEY GAVE US A QUOTE BASED ON THEIR SOURCE WELL CONTRACT. SOURCE WELL IS A BUYING CO-OP THAT WE CAN GO IN AND GO DIRECTLY WITH THAT PRICE. THEY HAVE ALREADY BEEN VETTED , THEY ARE A VENDOR FOR SOURCE WELL . WE GOT THAT LAST WEEK. I MET WITH THE CITY MANAGER YESTERDAY. AND I IDENTIFIED SOME AIRPORT FUNDS WE HAD. THERE SOME CAPITAL FUNDS THAT WE HAVE, WE CAN PAY FOR THIS. HE SAID, LET'S DO IT. WHY DON'T YOU TRY TO GET ON THE AUGUST 22ND COUNCIL MEETING. THAT AGENDA WAS STILL OPEN . BUT I COULD NOT BRING IT TO YOU FOR ACTION . SO I TALKED WITH CITY ATTORNEY AND HE SAID WE CAN DO THAT , I JUST HAVE TO MAKE THE NOTE IN THE AGENDA PACKET TO COUNCIL THAT THIS HAS NOT BEEN TO YOU FOR YOUR APPROVAL, BUT I DID REPORT THIS TO YOU. COUNCIL RELIES ON YOUR VETTING OF OUR CONTRACTS AND THINGS. BUT I THINK THEY PROBABLY WILL BE OKAY IN THIS CIRCUMSTANCE. I AM INFORMING YOU NOW THAT THIS IS ON THE AGENDA FOR COUNCIL. BUT TO REBUILD THESE ESCALATORS, AND I THINK GETTING THAT DONE AS QUICKLY AS POSSIBLE IS WORTH MAYBE NOT BRING IT TO YOU GUYS THIS TIME. WITH THE EXTENSION OF TIME TO DO OUR TERMINAL IMPROVEMENTS, WE ARE LOOKING AT SEVERAL YEARS PROBABLY BEFORE WE WOULD EVEN TOUCH THOSE ESCALATORS . I HATE SEEING THOSE SITTING STILL. IT IS A BAD LOOK FOR THE AIRPORT. IT'S A SUPER INCONVENIENCE FOR OUR PASSENGERS . WE WANT TO GET THAT GOING.

>>

>> RIGHT. IT WAS NOT TOTALLY OUT OF THE BALLPARK. IT WAS A

REASONABLE PRICE, I GUESS. >> DID THEY PUT A TIMELINE ON THAT? LIKE A START AND FINISH DATE?

>> THEY HAVE NOT YET. WHEN WE DO A CONTRACT, THERE WILL BE A

TIMEFRAME. >> THEY DON'T ESTIMATE A

TIMEFRAME? >> THEY DID NOT IN THE QUOTE.

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WHO KNOWS WHEN THEY OPEN SOMETHING UP.

>> THE FUNDS HAVE NOT BEEN DESIGNATED FOR SOMETHING IN THE

FUTURE. >> WE WERE KIND OF BUILDING A COUPLE OF DIFFERENT FUNDS . THIS IS ONE THAT WAS BUILDING THAT IS $52,000 OF THAT , IT'S ACTUALLY AN OLD GENERAL OBLIGATION BOND FROM 2015. BUT THE CERTIFICATE OF OBLIGATION, FOR THAT FINAL AMOUNT FROM THE AIRPORT WAS SOLD IN 2019. WE NEED TO SPEND THAT MONEY, AND WE DO NOT NEED IT FOR A FUTURE GRANT MATCH. WE DID NOT HAVE ANYTHING EARMARKED FOR ANYTHING IN PARTICULAR. WE THINK THIS IS A WISE USE OF THE FUNDS TO MAKE AN IMPACT ON CUSTOMER SERVICE.

>> DON, IS THERE A REASON WE CANNOT APPROVE THAT TODAY?

>> IT WAS NOT ON THE AGENDA. I COULD REPORTED UNDER THIS. I JUST CANNOT TAKE ACTION ON IT.

>> CAN WE GIVE YOU A VOTE? TO BE ABLE TO SAY THEY VOTED, YES,

EVEN THOUGH THEY COULD NOT? >> WE COULD NOT DO THAT.

>> I SEE SEVERAL NODS, YOU ARE GOOD.

>> WANT TO HELP. >> IF YOU WANT, I CAN BRING IT BACK TO YOU IN SEPTEMBER FOR A VOTE. IT WOULD JUST BE AFFIRMING WHAT COUNCIL HAS ALREADY APPROVED. THE CITY ATTORNEY AND I THOUGHT WE WERE ON SOLID GROUND DOING IT THIS

WAY. >> IT'S EXCRUCIATING FOR EVERYONE TO COME BY. THE MORE PEOPLE TO GO OVER THERE INAUDIBLE ] THOSE ELEVATORS ARE NOT THE FASTEST.

>> THE ELEVATOR IS ORIGINAL TO THE BUILDING. AND IT IS NOT

SUPER RELIABLE. >> I AM NOT TELLING ANYBODY

THAT. >> I AM HAPPY WE ARE ABLE TO DO THIS. AND WE DO HAVE FUNDS AVAILABLE TO DO THIS. WE'VE REACHED THAT POINT. KNOWING THAT -- WILL NOT HAPPEN ANYTIME SOON. WE WILL GET THAT TAKEN CARE OF.

>> WILL NOT BE A CONSENT AGENDA ITEM?

>> IT IS ON CONSENT RIGHT NOW. BUT -- HAS THE OPTION TO PULL THAT FROM CONSENT. I TRY TO EXPLAIN IT WELL IN THE AGENDA MEMO. AND LET THEM KNOW , I REPORTED THIS TO YOU TODAY.

THAT IS IN THE MEMO. THEY MAY WANT TO DISCUSS IT TOO.

OFTENTIMES, THEY STAY ON CONSENT. OF COURSE, THEY USUALLY HAVE THE BOARD'S APPROVAL ALREADY. WE WILL SEE.

OPERATIONS AND EVENTS. WE HAVE NOT HAD ANY -- WE DID HAVE AMERICAN AIRLINES REGIONAL JET MAKING AN EMERGENCY LANDING YESTERDAY. WITH A MECHANICAL ISSUE. BUT IT WAS VERY UNEVENTFUL , FORTUNATELY . RESTAURANT AND VENDING SERVICES. LIKE I REPORTED LAST YEAR -- ENDED OPERATIONS AUGUST 6TH . MAYBE THE FOURTH. THAT IS CLOSED. -- WHICH HOLDS THE LEASE ON THE RESTAURANT AND BENDING IS ACTIVELY PURSUING OTHER OPTIONS. ELIZABETH HAS PREPARED A SURVEY FOR OUR EMPLOYEES , AND A SEPARATE SURVEY FOR PASSENGERS, ASKING THEM WHAT THEIR PREFERENCES ARE PURSUED -- FOR FOOD SERVICES.

WE SHOULD HAVE THE RESULTS FOR FRIDAY. THAT WILL BE THE

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AND LET THEM KNOW WHAT PEOPLE WANT.

>> IT HAS BEEN A WHILE SINCE WE HAVE DONE A SURVEY LIKE THAT.

NOT ONLY ASKING WHAT TYPE OF FOOD, BUT PRICE POINT SENSITIVITY. PARTICULARLY FOR EMPLOYEES. IF THE RESTAURANT IS NOT SUPPORTED BY EMPLOYEES IN THE TERMINAL AREA, AROUND THE TERMINAL, IT IS GOING TO BE HARD TO BE SUCCESSFUL ANYWAY.

THOSE ARE THE PEOPLE WHO WERE GOING TO SHOW UP ON A WEEKLY BASIS , SOME EVEN ON A DAILY BASIS. WE HAVE TO SATISFY THE EMPLOYEES IN ORDER TO REALLY MAKE THE RESTAURANT A SUCCESS.

IN THE PREVIOUS OPERATOR REALLY WAS NOT GETTING EMPLOYEES . AS GOOD AS I THOUGHT THE FOOD WAS, AND I THINK THEY WERE GETTING A GOOD NUMBER OF PASSENGERS. THEY WERE NOT GETTINGEMPLOYEES . WE ALSO HAVE SWAY, WHICH IS LOCATED ADJACENT TO THE COURTHOUSE DOWNTOWN. THEY ARE NOW DOING A MORNING COFFEE , AND LIGHT BREAKFAST TYPE SERVICES IN THE GATE AREA AT KIOSK WE HAVE . THEY HAVE BEEN DOING THAT FOR TWO WEEKS NOW.

IT SEEMS TO BE GOING WELL FOR THEM. THEY ARE OFFERING COFFEE,

ICED COFFEE AND TEA . >> FRUIT CUPS, MUFFINS,

PASTRIES. >> WHAT TIME DOES THAT START?

>> 5:00. A LITTLE BEFORE 5:00. ANYWAY, WE WILL SEE . WE HOPE

SO. >>

>> IT SEEMS TO BE GOING WELL. THE OWNER OF -- HAS ORDERED A NEW VENDING STYLE MACHINE TO GO INTO THE GATE AREA. IT WILL BE A REFRIGERATOR COOL ARE YOU OPEN UP, YOU PULL OUT WHAT YOU WANT AND IS BASICALLY ON THE HONOR SYSTEM. YOU PUNCH IN WHAT YOU ARE GETTING AND PAY FOR IT WITH A CARD. THEY SHOULD EXPAND THE CHOICES. MAYBE EVEN OFFERING SOME MORE FRESH CHOICES. I ASKED HIM FOR AN UPDATE THIS AFTERNOON, I THINK BY THE END OF THIS MONTH, WE SHOULD HAVE THAT DELIVERED.

THAT WOULD BE IN THE GATE AREA ONLY. AND HIS VENDING MACHINES ON THE PUBLIC SIDE. WE HAD SOME SERVICE ISSUES . HE BELIEVES THAT IS DUE TO INCONSISTENT WI-FI SIGNAL IN THE TERMINAL.

IT SHUTS DOWN THE VENDING , OF THE CREDIT CARD TRANSACTIONS WITH THAT, WHICH LEADS TO ANOTHER PROJECT IN THE WORKS THAT ELIZABETH IS TAKING THE LEAD ON. THAT IS A SIGNAL BOOSTER. IT IS A COMPANY THAT IS IN CALIFORNIA, BUT THEY ARE DOING WORK FOR WILEY IN TOWN. THEY HAVE ALSO DONE WORK FOR HENDRICK. THESE BUILDINGS TO HAVE A WEAK CELL AND DATA SIGNALS, AND BOOST THOSE. THEY WILL COVER ALL OF THE COMMON CARRIERS, AT&T, T-MOBILE, VERIZON, PRINT. SPRINT. THAT IS SOMETHING ON THE PRICE AND COST BASIS, IT PROBABLY WOULD RUN $35,000-$40,000 TO INSTALL. ELIZABETH IS WORKING ON A TRADE AGREEMENT FOR ADVERTISING WITH THEM. THEY ARE VERY INTERESTED IN EXPANDING THEIR VISIBILITY WITHIN OUR AREA. THEY HAVE GIVEN US A PROPOSAL. THEY ARE ON BOARD.

>> MAX BOOST WIRELESS . >> WE ARE EXCITED ABOUT THAT, TO GET THEM IN THE TERMINAL. AND HOPEFULLY NOT ONLY IMPROVE SERVICE FOR OUR VENDING MACHINES. CREDIT CARD

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>> THERE IS ALSO A COMPANY CALLED TITAN THAT PUTS TOWERS UP , THEY'RE IN THE PROCESS OF PUTTING A TOWER UP ON THE EXPO GROUNDS. IT IS THE SAME KIND OF A DEAL. WE ARE IN THE PROCESS OF DOING THAT . I THINK THEY HAVE TO GET AN FAA APPROVAL STILL. IT'S ABOUT 100 FOOT TOWER .

>> AROUND THE AIRPORT, EVEN OUTSIDE, THERE ARE PLACES WHERE YOU GO THROUGH A VOID . AT LEAST TWO TIMES ON AIRPORT

BOULEVARD . >> I DON'T REALLY KNOW ANYTHING ABOUT AIRPORT TENANT ISSUES OR PERFORMANCE.

EVERYBODY SEEMS TO BE DOING WELL WITH THE INCREASE PASSENGERS, IT MEANS INCREASED REVENUE FOR EVERYBODY. OUR FISCAL YEAR 2025 BUDGET WAS APPROVED BY COUNCIL AUGUST 8TH.

SO NOW, WE ARE WAITING FOR OCTOBER 12, -- OCTOBER 1 TO COME . -- WE WILL START OFF A NEW. IN OUR REVISED BUDGET, WE ARE IN GOOD SHAPE. WE ARE DOING WELL. OUR REVENUES HAVE SURPASSED -- I BUDGETED $700,000 AIRPORT PARKING REVENUE FOR THIS YEAR. WE WILL PROBABLY BE REALLY CLOSE TO $1 MILLION IN PARKING REVENUE. THAT EXTRA $300,000 IS GOOD TO HAVE. NOW THAT WE ARE AN ENTERPRISE FUND, IT WOULD HAVE STAYED AT THE AIRPORT ANYWAYS. THE FAA WILL NOT ALLOW THE CITY TO TAKE THOSE EXCESS FUNDS. LIKE IF YOU WERE REALLY A TRUE GENERAL FUND DEPARTMENT OF THE CITY. IT ROLLS OVER. SO WE WOULD HAVE ACCESS TO THAT IN A FUTURE YEAR IF WE WERE RUNNING

SHORT ON OPERATING -- >> JUST OUT OF CURIOSITY, COULD THAT EXTRA HAVE BEEN USED FOR THE ESCALATOR REPAIR?

>> IT COULD HAVE. >> IT WOULD TAKE A BUDGET AMENDMENT BY COUNCIL, ACTUALLY. IT COULD HAVE -- IN THE FUTURE.

IT IS PROBABLY BETTER , SINCE WE ARE GOING INTO A LITTLE BIT OF AN IFFY FISCAL YEAR 2025 , WITH TALK OF A SOFT LANDING , A.K.A. RECESSION , WE MAY NEED TO DIP INTO THAT TO MEET OUR EXPENSES. BUT, WE WILL HAVE IT. AND I WILL LET ELIZABETH TALK

ABOUT MARKETING. >> OUR FAVORITE SUBJECT. IS THIS WORKING? EARLIER THIS MONTH, WE ALSO MET WITH THE MARKETING COMMITTEE. CINDY IS NOT HERE. SO I AM GOING TO SERVE -- PROVIDE A RUNDOWN OF WHAT WAS DISCUSSED IN THAT MEETING. OVER THE LAST 90 DAYS, IT HAS BEEN A LOT. MY FOCUS HAS BEEN ON REBUILDING OUR MARKETING AND ADVERTISING INFRASTRUCTURE. AND I THINK WE HAVE ACCOMPLISHED A GREAT DEAL.

YOU KNOW OUR SOCIAL MEDIA IS UP AND RUNNING. WOKE UP MANY SWEEPING FOLLOWERS. PEOPLE ARE ENGAGED AND ACTIVE, THEY ARE PARTICIPATING. I THINK MOST OF ALL, PEOPLE ARE ENJOYING SEEING COMMUNITY REFLECTED BACK TO THEM. I THINK FOR OUR SOCIAL MEDIA, WHAT WE WANT TO DO IS, SINCE THIS IS THE MOST DIRECT ENGAGEMENT WE HAVE WITH OUR COMMUNITY, THAT OUR COMMUNITY FEELS VERY CONNECTED TO, AND INVESTED IN. AND REFLECTED BY WHAT THEY SEE ON OUR SOCIAL MEDIA PLATFORMS. I THINK PEOPLE ARE ENJOYING THE CONTENT. A NUMBER OF YOU HAVE ALREADY BEEN REPRESENTED ON OUR SOCIAL MEDIA. IF YOU HAVE NOT YET, YOU WILL SOON. I WILL COME AND KNOCK ON YOUR DOOR. IT HAS BEEN A REALLY FUN PROJECT. AND I THINK WE HAVE GOT SOME REALLY EXCITING THINGS THAT WE CAN CONTINUE TO DO THEIR . WHAT WE

[00:35:06]

SPONSORSHIPS. I REALLY APPRECIATE THIS TERM THAT ROBERT USED AN COOPERATIVE MARKETING EFFORT. I THINK WHEN WE ARE ENGAGING IN DIFFERENT SPONSORSHIPS WITH ENTITIES, WHETHER IT BE CHAMBER, OR ACU, OR -- A COOPERATIVE APPROACH, WE ARE NOT AS REPRESENTED AT YOUR EVENT COP -- BUT A WHOLE PROGRAM, COLLABORATIVELY USING THE RESOURCES EACH ORGANIZATION HAS . BECAUSE WE HAVE TO BE CREATIVE. AND TIGHT BUDGET TIMES . WE ARE USING EVERY PLATFORM AT OUR DISPOSAL TO HELP AND ASSIST EACH OTHER. WE HAVE A NEW COOPERATIVE MARKETING AGREEMENT WITH ACU ATHLETICS THAT WILL BE PHENOMENAL. I AM HOPING TO GET A VIDEO SOON THAT WE WILL START PUTTING ON OUR TERMINAL SCREENS. THE TERMINAL SCREENS, I'VE BEEN REALLY WORKING ON MAKING SURE WE HAVE UPDATED CONTENT. AGAIN, THAT OUR CITY IS REPRESENTED. THE FACES OF OUR CITY IS REPRESENTED. ALL OF OUR BILLBOARDS. WE WANT TO HAVE A SYNERGISTIC PROGRAM IN WHICH YOU ARE SEEING THE SAME THING REPRESENTED ON ALL OF THE DIFFERENT SCREENS THAT PEOPLE ARE LIVING ON. WE ARE ALSO UTILIZING THE SCREEN TO GATHER THE MARKET RESEARCH. THE DINING SURVEYS GOT REALLY GOOD PRELIMINARY RESULTS. PEOPLE ARE PARTICIPATING. THAT IS GOING ON SOCIALS AND TERMINAL SCREENS. PEOPLE ARE SEEING THE DOWNTOWN ABILENE PROMOTION. THEY ARE SEEING DCOA , I WANT TO KEEP THE CONTENT GOING AS REGULARLY AS POSSIBLE. DAVID WALLER AND I

[00:40:02]

THEY ACTUALLY HAVE A CONTRACT TO PROVIDE THESE SIGNAL BOOSTERS IN NEARLY ALL OF -- IN TEXAS. THEY WILL BE IN AUSTIN WORKING ON ANOTHER ONE RIGHT THERE DURING LABOR DAY WEEKEND.

WE HOPE WE CAN GET THEM HERE FOR A SITE VISIT, SO THEY CAN PLAN AND INSTALL. WE WILL GET OUR FIRST TERMINAL SCREEN ADVERTISEMENT SOLD, HOPEFULLY, AS A PART OF THAT AGREEMENT. WE ARE NOT IS GOING TO BE TRADING. WE WILL START GENERATING REVENUE, HITTING SOME MORE ADVERTISING SOLD. I DON'T KNOW IF WE PROVIDED THIS IN THE LAST BOARD MEETING, BUT -- BANK HAS SIGNED ON TO ADVERTISE ON THE TERMINAL DOORS. AND HENDRICK HAS ALSO SIGNED UP TO ADVERTISE ON THE TERMINAL REVOLVING DOORS AS WELL. WE WILL START GETTING THAT REVENUE IN. GETTING SOME NEW, BEAUTIFUL ARTWORK UP IN THE AIRPORT. WE ARE HOLDING TOURS , WE ARE LOOKING AT HOLDING MORE EVENTS. WE HAD THE ADAPTIVE RECREATION CENTER COME IN. AND I'M WORKING ON PUTTING TOGETHER A MONTAGE OF VIDEO AND PHOTOS FROM THEIR VISIT THAT WE CAN ALSO FEATURE ON THE WEBSITE. THE WEBSITE IS MY CURRENT PROJECT. REALLY DIVING INTO THAT TO REVAMP AND DO SOME REDESIGN. AND MAKE SURE WE ARE USING EVERY PLATFORM AT OUR DISPOSAL, MAKING SURE THAT IS STEWARDED WELL. THE NEXT IS THE FLY LOCAL PLEDGE. IS A JOINT INITIATIVE WITH THE CHAMBER. I WILL WORK ON GETTING THE BLACK CHAMBER AS WELL ON BOARD. WE WANT TO LAUNCH THAT AT THE CHAMBER MANNISH -- MEMBERSHIP DINNER. WHERE WE WILL HAVE ALL THE LOCAL BUSINESS OWNERS THERE, THAT ARE ALREADY MAKING THE DECISIONS TO FLY ABI. WE WANT THEM TO MAKE THE PUBLIC PROMISE THAT THEY WILL FLY ABI.

IT WILL BE FREE TO THEM TO PARTICIPATE . THE WAY IT GOES IS, THEY PICK A DOLLAR AMOUNT. -- IF THE COST OF AIRFARE IS WITHIN $100, $200, EVEN IF IT IS $200 MORE, WE WILL FLY OUT OF ABI AND GIVE THEM A LOGO PLACEMENT IN THE AIRPORT. AND HOPEFULLY UTILIZING ALSO OUR OTHER -- MULTI SCREEN STRATEGY.

FROM THERE, WE WILL DIG INTO OUR VIP PROGRAM. I WOULD LOVE TO HEAR YOUR THOUGHTS ON WHAT YOU THINK SHOULD BE INCLUDED IN OUR NEW AND IMPROVED VIP. LET ME KNOW IF YOU HAVE ANY

QUESTIONS. >> VERY GOOD, THANK YOU.

>> FLIGHT SCHEDULE STABILITY. WE NOTICED IN OCTOBER , OCTOBER 4TH THROUGH 26TH, ABOUT THREE WEEKS WHERE AMERICAN TOOK US DOWN TO FOUR DEPARTURES PER DAY FROM THE FIVE. IT WAS A TEMPORARY MOVE , AND THEN WE ARE BACK UP . PARTICULARLY IMPORTANT FOR THE HOLIDAY SEASON. WE ARE BACKED UP -- BACK UP TO FIVE . I HAVE NO EXPLANATION ABOUT WHY THEY ARE DROPPING US FOR THE THREE-WEEK PERIOD. THEY DO NOT CONSULT US ON THAT. BUT OUR CONSULTANT PICKED UP ON THAT. AND OUR LOCAL ENVOY FOLKS HAVE CONFIRMED THAT IS WHAT THEY ARE SEEING TOO. IN OCTOBER, ELIZABETH AND I WILL BE ATTENDING THE TAKEOFF CONFERENCE. WE HAVE DONE THAT BEFORE. THAT IS OUR AIR SERVICE -- THERE ARE SEVERAL THROUGHOUT THE YEAR. I ALWAYS ASK OUR AIR SERVICE CONSULTANT, OKAY, DO WE NEED TO GO TO ANOTHER ONE BESIDE IT TAKEOFF. ARE WE MISSING ANY OPPORTUNITIES? IN THE PAST, IT HAS BEEN, NO, THAT IS WHERE YOU NEED TO BE. WE HAVE BEEN THROUGH ROUTES -- BECAUSE IT WAS IN TEXAS, AND IT WAS EASY TO GET TO. TAKEOFF IS

[00:45:02]

WELL IN MEMPHIS . >> WE CAN WISH HIM WELL.

>> COMMITTEE REPORTS WOULD HAVE BEEN THE REPORT. CINDY IS NOT HERE, BUT ELIZABETH PRETTY MUCH COVERED EVERYTHING THE MARKETING COMMITTEE HAD IN THEIR MEETING TWO WEEKS AGO .

[5. Discussion and Action to Approve a Recommendation to City Council for Abatement of Rent for Brevard Capital Group, LLC]

THAT IS IT FOR THE REPORTS. >> VERY GOOD.

>> ITEM NUMBER FIVE. >> I THINK WE HAVE DISCUSSED THIS PREVIOUSLY, AND NOW WE ARE READY FOR ACTION FROM YOU. OUR HERTZ FRANCHISEE HAS LEASED A SERVICE CENTER . AT THE LAST MEETING, YOU APPROVED AN EXPANSION OF THEIR LEASE TO ACCOMMODATE A CAR WASH THAT THEY WANT TO PUT THERE. KNOWING THEY WILL BE MOVING AT SOME POINT IN THE FUTURE TO A CONSOLIDATED QUICK TURNAROUND FACILITY, WITH THE OTHER CAR RENTAL COMPANIES. THEY HAVE FOUND OUT THAT THERE IS NO ELECTRICAL SERVICE ON THAT LEASEHOLD WHERE THEY HAVE THE SERVICE FACILITY. AND THEY ARE GOING TO HAVE TO BRING THAT SERVICE ONTO THE FACILITY AT A COST THAT WE DID NOT ANTICIPATE. WE THOUGHT THERE WAS SERVICE THERE. BUT FINDING OUT THAT SOMEHOW, THE PREVIOUS OPERATOR HAD ELECTRICAL SERVICE, BUT NOT THROUGH -- I CANNOT EXPLAIN THAT. I DO NOT KNOW HOW THAT HAPPENED. THEY HAD A FUEL PUMP AND THEIR CAR WASH -- THAT HAD ELECTRICITY. FINDING THAT OUT, SINCE THAT IS SOMETHING THAT WE WERE NOT AWARE OF AS A CONDITION TO ENTER INTO THAT LEASE , AND THEY WERE NOT AWARE OF IT, I THINK IT IS A GOOD GESTURE , THE RIGHT GESTURE, IN MY OPINION. TO OFFER THEM A BREAK ON THE RENT. TO OFFSET SOME OF THE COST , THAT THEY WILL HAVE TO INCUR TO BRING ELECTRICITY TO THEIR PROPERTY. THEY COULD DO THAT WITH A RENT ABATEMENT

UP TO 12 MONTHS . >> DO YOU HAVE ANY IDEA OF WHAT

THE COST WILL BE? >> ABOUT $12,000 AT LEAST.

THERE WAS AN EMAIL THIS MORNING FROM EARLIER TODAY WITH THE ELECTRICIAN THAT THEY WANT TO ACTUALLY INCREASE THE SIZE OF THE TRANSFORMER. WE ARE NOT TRYING TO OFFSET THAT. HE IS GOING TO NEED TO HAVE A LARGER ELECTRICAL LOAD BECAUSE OF THE CAR WASH HE IS ORDERING THAT HE PLACED THERE. MY INTENT WAS TO

[00:50:05]

THROUGH DECEMBER 31ST, AND THEN IT GOES TO $541.67 , FROM JANUARY 1 TO DECEMBER 31ST . OUR INTENT IS TO GIVE ABOUT 12 MONTHS, THAT IS WHAT I AM PROPOSING TO YOU. AND LET YOU DISCUSS WHAT YOU WANT. I DO NOT THINK WE WOULD NEED TO DO ANYTHING MORE THAN 12 MONTHS. WE COULD CERTAINLY DO US. I HAVE NOT PROMISED -- BREVARD CAPITAL GROUP, LLC ANYTHING OTHER THAN, I AM BRINGING THIS TO THE BOARD .

>> YOU ARE PROPOSING A 12 MONTH AT 550?

>> IT WOULD BE 12 MONTHS -- $550 PER MONTH UNTIL THE END OF THIS YEAR. IF YOU WERE TO APPROVE THIS, WE WOULD TAKE IT TO COUNCIL AND MAKE IT EFFECTIVE SEPTEMBER 1ST . THAT IS THREE MONTHS AT $550. AND THEN GOING INTO NET YEAR, STARTING JANUARY 1ST, IT WOULD BE $541.67 PER MONTH. BECAUSE THAT IS THEIR LEASE RATE NEXT YEAR . ESSENTIALLY, I AM PROPOSING $6500 IN RENT ABATEMENT , WHICH AT $541.67, THAT IS -- IT WOULD BE LESS THAN THE 12 MONTHS BECAUSE OF THE THREE MONTHS ON SEPTEMBER , OCTOBER, NOVEMBER, AT $550. BUT IT GIVES THEM A SOLID NUMBER TO COUNT ON AS AN ABATEMENT. IT IS NOT GETTING THE FULL $12,000 OR SO . IT IS A GOOD FAITH GESTURE ON OUR PART TO SAY, HEY, WE DID NOT KNOW YOU WERE GETTING INTO THIS SITUATION. AND YOU ARE HAVING TO INCUR THIS UNPLANNED EXPENSE. THAT IS ESSENTIALLY MY RECOMMENDATION OF $6500 AS AN ABATEMENT. AND WE WOULD DO THAT THROUGH RENT ABATEMENT UP TO 12

MONTHS . >> THERE IS NO COST TO THE CITY

REGARDING THIS OPERATION? >> OUT OF BUDGET COSTS, IT WOULD REDUCE OUR REVENUES BY $6500 FOR THIS NEXT YEAR.

>> YES, BECAUSE, I DID PLAN ON THIS REVENUE IN THE SCHOOL YEAR 2025. IT IS GOING TO REDUCE -- BY $2500. BUT IT WILL NOT COST

US EXPENSES IN THAT AMOUNT. >> ARE THEY TO BE HAPPY WITH

THE $6500 REDUCTION? >> HE ACTUALLY SEEMED TO BE APPRECIATIVE THAT I WAS EVEN OFFERING ANYTHING . I DO NOT THINK WE NEED TO DO , OR CAN DO ANY MORE THAN THAT. AND THIS WILL HAVE TO GO TO COUNCIL ALSO.

>> AND THERE IS NO EVIDENCE WHATSOEVER HOW THE PREVIOUS

TENANT POWERED THEIR STUFF? >> I WILL SAY, THERE WAS EVIDENCE , BUT, IN A RECENT PROJECT , WE DO NOT KNOW WHAT WE WERE LOOKING FOR. IT WAS TAKEN AWAY IN A RECENT PROJECT.

THIS IS A FIVE YEAR LEASE. THE REESE -- THE LEASE RUN CONCURRENT. WE HAVE PRICING THROUGH DECEMBER 31ST, 2028.

>> YOU ARE SAYING THE BUDGET IS FOR $6500? YOU BUDGETED THAT IN, SO NOW THAT IS NOT COMING IN. WHERE IS THE MONEY GOING TO

GO? >> THAT GOES TOWARD OUR OPERATING COST. HOWEVER, WE BELIEVE THAT HERTZ WILL MAKE UP FOR THAT IN THE RENTAL COMMISSIONS THAT WE WILL MAKE.

RIGHT NOW, THEY CAN ONLY RENT 10 CARS A DAY, BECAUSE THAT IS

[00:55:05]

>> ANY MORE QUESTIONS FOR DON?

>> CAN I GET A MOTION TO APPROVE THE ABATEMENT OF RENT FROM BREVARD CAPITAL GROUP, LLC?

>> SO MOVED. >> SECOND .

>> ALL IN FAVOR? >> AYE.

[6. Discussion and Action to Approve a Recommendation to City Council for increasing the Customer Facility Charge.]

>> OPPOSE? HEARING NONE, WE MOVED TO ITEM SIX.

>> THANK YOU. DISCUSSION AND ACTION TO APPROVE A RECOMMENDATION TO CITY COUNCIL FOR INCREASING THE CUSTOMER

FACILITY CHARGE. >> WE HAVE A BALANCE OF $2.8 MILLION IN THE CUSTOMER FACILITY CHARGE FIND THAT WILL FIND IN THE CONSTRUCTION. IT CURRENTLY IS FUNDING THE DESIGN . THE CONSOLIDATED SERVICE CENTER, WHATEVER YOU WANT TO USE. I WILL SAY CUTIE A -- THE $2.8 MILLION IS COLLECTED AT THREE DOLLARS PER DAY . EACH CUSTOMER WHO RENT A CAR AT THE AIRPORT IS PAYING THREE DOLLARS PER DAY ON THEIR RENTAL, THAT'S A VERY COMMON PRACTICE AT AIRPORTS AROUND THE COUNTRY.

THE AIRPORT S TYPICALLY USE -- IT IS GOOD BUSINESS TO DO SO IF YOU WANT THE RENTAL CAR COMPANIES TO CONTINUE TO SUPPORT YOU ON THE CFC. BUT WE FOR WHATEVER WE WANT. IN THE FUTURE, WE MAY WANT TO USE IT. WE GET TO THE TERMINAL PROJECT, WE MAY WANT TO USE THOSE FUNDS TO MOVE THE RENTAL CAR COUNTERS IN THE TERMINAL, TO HELP WITH SOME OF THAT COST . BUT WE HAVE TOLD THE CAR RENTAL COMPANIES FOR YEARS NOW THAT WE WANT TO USE THIS FOR THEIR QTA . THEY HAVE BEEN SUPPORTIVE OF THAT.

NOW WE WANT TO ACCELERATE THE COLLECTION OF THOSE FUNDS. WE WERE PROPOSING SIX DOLLARS A DAY. THEY THOUGHT THAT WAS HIGH. THAT IT WOULD BE NOTICEABLE TO OUR CUSTOMERS.

THERE ARE SOME AIRPORTS IN OUR REGION WHO WERE CHARGING THAT MUCH, BUT NOT MANY. IT WOULD PUT US RIGHT THERE AT THE TOP.

THE RECOMMENDED $4.50 . LOOK AT THE COLLECTIONS IN ABOUT SIX MONTHS, AND SEE WHERE WE ARE. IF WE ARE SATISFIED WITH THAT RATE OF COLLECTION, THEN LEAVE IT AT $4.50. OR IF WE ARE NOT SATISFIED, LOOK AT POSSIBLY GOING BACK AND RAISING IT AGAIN UP TO SIX DOLLARS , NOT NECESSARILY TO SIX DOLLARS . I THINK THAT IS WIFE. TO LOOK AT THAT IN SIX MONTHS . TO COME BACK AND REPORT TO YOU WHAT WE FOUND. WHERE THE COLLECTIONS ARE, WHAT OUR PROJECTIONS ARE FOR COLLECTIONS GOING INTO THE FUTURE AND SEE IF THEY ARE MEETING OR EXCEEDING OUR

EXPECTATIONS. YES? >> YOU HAVE A NUMBER OF PEOPLE ON THIS BOARD -- WOULD THAT SIX DOLLAR CHARGE MAKE A DIFFERENCE? IN THE TRAVELING YOU DO?

>> I CAN TELL YOU FROM MY EXPERIENCE, I DON'T LOOK AT IT. THAT IS JUST THE TRUTH. ON THE OTHER SIDE, I DO HAVE TO -- YOU GOT TO RENT THE CAR. I JUST RENTED A CAR FROM JACKSONVILLE . I PUT 2000 MILES ON IT AND WOUND UP IN TAMPA , AND FLEW OUT OF TAMPA. IT WAS FOUR DOLLARS A DAY FOR THAT. THEY ARE QUITE A BIT BIGGER THAN WE ARE. YOU HAVE TO DO AN ECONOMY OF SCALE. THERE IS A BREAK POINT.

[01:00:02]

>> DO YOU THINK PEOPLE WOULD LOOK AT THAT ANGLE, --

INAUDIBLE ] >> YOU DO NOT VIEW IT AS ONE OF YOUR DAILY EXPENSES, BECAUSE YOU ARE AT THE AIRPORT. I WOULD SAY BETWEEN FOUR DOLLARS AND SIX DOLLARS WOULD BE OKAY . I

PAY IT ALREADY. >> I THINK YOU ARE RIGHT . WHEN I RENT A CAR, WHEN I'M LOOKING AT THE CFC. JUST LIKE WHEN I BOOK A FLIGHT, I AM NOT LOOKING AT THE FEES AND THE TAXES. AND THE OTHER FEES ATTACHED TO IT.

>> DO WE KNOW HOW MANY CARS ARE AVAILABLE TO RENT IN OUR

FACILITY? >> I AM GOING TO GUESS THAT AVIS AND ENTERPRISE HAVE ABOUT $30 APIECE. AND THEN HERTZ IS

AT $10 A DAY. >> AROUND $70 -- 70?

>> AVIS AND ENTERPRISE , IT WOULD BE A RARE DAY THAT YOU COULD WALK UP TO THOSE COMPANIES AND SAY, DO YOU HAVE A CAR AVAILABLE, AND THEY SAY, YOU. HERTZ RIGHT NOW DOES HAVE CARS AVAILABLE FOR WALK-UP. HE HAS OPEN THOSE UP FOR ONE WAYS TO. AND ONE WAYS MEETING, SOMEBODY NEEDS TO DRIVE TO DFW . THEIR FLIGHT CANCELED HERE. OR THEY DIVERTED HERE , THEY HAVE VEHICLES AVAILABLE FOR THAT. WHERE THE OTHERS JUST DO NOT. BUT SOME OF THAT WILL GO AWAY WITH HERTZ WHEN HE IS ABLE TO OPEN UP HIS RESERVATIONS MORE BECAUSE OF THE CAR WASH BEING THERE , AND THE CONSERVATIVE CAR IS FASTER.

>> HERTZ AND AVIS ARE THE ONLY ONES -- ONE-WAY?

>> THAT IS BECAUSE FRANCHISE AGREEMENTS OR CORPORATE

AGREEMENTS. >> OR BECAUSE OF THE WAY DFW IS. THAT IS NOT A CONVERSATION FOR US, BUT FOR THE CAR COMPANIES . WHENEVER YOU RENT THE VEHICLE AND BRING IT BACK, YOU HAVE TO BE -- BECAUSE YOU'RE TAKING IT BACK HOME. IT IS NOT HURTING THE AIRPORT IT IS LEAVING, IT IS HURTING THE AIRPORT IT IS GETTING TO . TRUST ME, THE AIRPORT IT IS LEAVING, THEY MAY PUT YOU IN A MASERATI TO GET THAT OFF OF THEIR BOOKS. SO WHEN IT GETS HERE, THAT IS ANOTHER HARDSHIP FOR THE CAR COMPANIES THAT WE NEED TO BE AWARE OF TOO.

>> THEY DO NOT CHARGE YOU ANYTHING ADDITIONAL.

>> LET ME RESTATE THAT. THEY DO NOT CHARGE ME ANY ADDITIONAL CHARGES ONE WAY OR THE OTHER. I AM IN A STATUS WITH THEM WHERE THEY DO THAT. COMING TO ABILENE FROM DFW, AND ONLY TWO OF THEM WOULD COME TO YOU. ENTERPRISE WILL NOT LET YOU DO THAT.

>> IS DIFFERENT THAN IF YOU ARE TRAVELING TO EUROPE AND YOU WANT TO GO TO ZÜRICH , TO VENICE, AND LEAVE THE CAR. THEY WILL CHARGE YOU A LOT TO DO THAT.

>> HERE , THERE IS NOT THE DROP OFF THE YOU WOULD NORMALLY SEE OF $200 OR SOMETHING. IF YOU DID IT, YOU RENTED A CAR FROM ENTERPRISE AND YOU TOLD THEM IT WAS LOCAL, AND YOU WOUND UP BACK IN ABILENE, THEY HAVE YOUR CREDIT CARD ON FILE AND THEY WILL CHARGE YOU FOR THAT. JUST LIKE A TOLL TAX OR ANYTHING ELSE THAT COMES UP AFTERWARDS . 10 DAYS LATER, YOU WILL GET

CHARGED. BY AVIS AND HERTZ. >> FINAL QUESTIONS?

>> WERE THEY GIVEN ANY FEEDBACK FOR WHO RENTS CARS ?

>> IT RUNS THE GAMUT. WE HAVE A LOT OF CORPORATE CUSTOMERS AND

[01:05:08]

THEY ARE ALREADY IN ONE, THEY DID NOT HAVE -- HAVE NOT OPENED IT YET. THE PROJECTION ALEX BUT TO GET -- TOGETHER AT $4.50, WE WOULD HAVE A $5 MILLION BALANCE IN ABOUT 2028 . WE COULD START CONSTRUCTION LATE 2028, EARLY 2029 WITH THAT BALANCE WITH THE CASH ON HAND. AGAIN, THIS IS YOUR CHOICE, YOUR DISCUSSION ABOUT WHETHER IT IS $4.50, OR GOING UP TO SIX DOLLARS NOW.

>> WHAT ARE THE COMPARABLES? I AM SURE YOU'VE DONE THE COMPARABLE ANALYTICS ON WHAT THEY ARE CHARGING , THE NUMBER OF PASSENGERS THAT COME THROUGH, THE NUMBER OF GATES THEY HAVE . HOW DOES THAT SHAKEOUT?

>> AT THREE DOLLARS PER DAY, WE ARE IN THE LOWER HALF OF THAT.

AT $4.50, WE WOULD BE CLOSER TO THE MIDDLE. AT SIX DOLLARS,

WOULD BE -- >> YOUR PROPOSAL WAS AT $4.50?

>> THAT IS BASED ON WHAT THE CAR RENTAL COMPANIES ARE

COMFORTABLE WITH. >> OUR REGIONAL PROPOSAL WAS

SIX DOLLARS PER DAY. >> AND THEY PUSHED BACK?

>> THEY PUSHED BACK AND SAID, THAT WILL BE TOO HIGH. AGAIN, THAT WAS SIX DOLLARS A DAY TOO HIGH. $4.50, WE ARE OKAY. BUT LET'S SEE WHERE WE ARE IN SIX MONTHS, IF WE ARE COLLECTING, AND THEN COME BACK AND TALK ABOUT IT.

>> DID THEY SAY WHY THEY LIKED THE NUMBER?

>> THEY RECOGNIZED THE NEED FOR AN ADDITIONAL -- TO ACCELERATE THE COLLECTION. BUT IT WAS BASED ON WHERE WE WOULD NOT BE KILLING OUR MARKET. NOT KILLING IT, BUT AGAIN, I THINK THEY KNOW CUSTOMERS ARE NOT REALLY LOOK AT THAT.

>> I WOULD VENTURE TO SAY, IF YOU PUT A NUMBER OUT THERE AND SAY, THAT IS GOING TO BE $500 FOR FIVE DAYS, THAT IS ALL YOU'RE GOING TO SPEND IS $500. OKAY. PEOPLE ARE GOING TO SIGN THAT AND MOVE ON. THEY WANT TO GET THE CAR. THE PROBLEM IS, WE ITEMIZE THINGS. THAT IS A DERIVATIVE FROM CFOS AND EVERYBODY ELSE THAT THINGS ITEMIZED . THE VAST MAJORITY OF PEOPLE WILL COME IN, GET THEIR CAR, HOW MUCH IS IT? THEY BASICALLY KNOW THE PRICE. THEY KNOW IT'S LIKE A CELL PHONE BILL. THEY TELL YOU IS GOING TO BE $25 A MONTH. AND ALL THE ANCILLARY POWER COSTS AND TAXES , THAT IS WHAT GETS YOU . IF WE DO NOT HAVE THIS -- THERE WOULD BE A DISCUSSION ABOUT IT.

>> YOU CAN MOVE IT FROM THREE DOLLARS TO SIX DOLLARS PER DAY.

YOU WOULD NOT HAVE A BLIP. >> IT WOULD BE, THAT IS JUST A

PART OF THE RENTAL RATE. >> I APPRECIATE THE RENTAL CARS COMING IN AND HAVING SOME PUSHBACK. THEY UNDERSTAND THE MORE THE CORRECT DAY. AND THEN ESPECIALLY IF WE ARE GOING TO CIRCLE BACK IN SIX MONTHS AND DO SOME SORT OF ANALYSIS ON IT TO SAY, EITHER WE ARE DROPPING IN OUR RENTAL DAYS, OR IT IS BASICALLY THE

SAME. >> IT IS NOT TIED TO THEIR

CONTRACTS. >> IF WE HAVE 70 CAR THE $4.50 A DAY, THAT'S ABOUT $150,000 PER YEAR .

>> THAT'S PRETTY CLOSE TO WHAT OUR INCOME IS. IS IT $130,000

[01:10:03]

OR SO? >> I THINK WE PROVIDED THAT TO YOU BEFORE. I WANT TO SAY, YOU ARE IN THE BALLPARK.

>> WE HAVE A LITTLE MORE THAN 70 CARS I GUESS, EVEN IF WE ARE ARE AT 150, HOW DO WE GET A $5 MILLION IN FOUR YEARS? BECAUSE

WE ARE $2.2 MILLION SHORT? >> WE HAVE $2.8 MILLION RIGHT

NOW. >> HOW DID WE GET THERE SO FAST? I'M JUST SAYING . I DID THE MATH . AT $4.50 TODAY, THAT'S WHAT I'M GETTING AT 70 CARS. EVEN IF IT'S $150,000 A

YEAR , FROM $130,000 -- >> YOU TALK ABOUT YOUR NET IS

$20,000. >> HOW DO WE GET TO ANOTHER $2.2 MILLION THAT FAST? I MEANT THE TOTAL .

>> I WILL HAVE TO GO BACK AND FIND THAT. IF YOU WANT TO TABLE THIS, WE CERTAINLY CAN. WE DO NOT HAVE TO DO IT TODAY. I CAN PROVIDE THAT INFORMATION ON THE ANNUAL REVENUE THAT WE HAVE COLLECTED ON THAT. AND I MIGHT BE OFF BY $100,000 ON THAT.

>> THE ISSUE IS GOING FROM THREE DOLLARS TO $4.50. IT SEEMS LIKE EVERYONE IS GOOD WITH THAT.

>> ESPECIALLY IF WE GET TO REVIEW IT. IT IS NOT SOMETHING WE ARE LOCKED INTO. -- IF THERE IS NEGATIVE FEEDBACK, WE WANT TO -- IF YOU LOSE SIGHT OF WHO THE CUSTOMER IS, YOU'RE ON THE WAY OUT OF BUSINESS. OUR CUSTOMERS ARE VERY DEAR TO OPERATIONS. I DO NOT REALLY RENT CARS AND BRING THEM INTO ABILENE . I AM TRYING TO GET UP TO GRAY BRIDWELL'S STATUS.

>> THANK YOU, ELIZABETH. >> NO MORE DISCUSSION?

>>

>> CAN I GET A MOTION TO INCREASE THE CUSTOMER FACILITY

CHARGE TO $4.50? >> SO MOVED.

>> NANCI LILES. RANDY WILLIAMS. ANY OPPOSED? MOTION PASSES .

>> THANK YOU. >> I WILL CLARIFY THE REVENUE FOR YOU. WE WILL COVER THE MATH NEXT MEETING. I LIKE NUMBERS

TOO. >> ITEM SEVEN, DISCUSSION AND

[7. Discussion and Action to Approve a Recommendation to City Council to Approve an amendment to the Airport Zoning Ordinance.]

[01:15:01]

BECAUSE THE BE 21 IS GOING TO CHANGE THINGS. IT'S THE TENURE PROCESS WE HAVE BEEN AT THIS. IT'S A WONDERFUL WEALTH OF DATA ON NOISE, HEIGHT RESTRICTIONS . YOU CANNOT BUILD A TOWER AT THE END OF THE RUNWAY, ET CETERA. IT IS A

WONDERFUL EVENT. >> IF WE GET YOUR APPROVAL ON THIS TODAY, THEN IT GOES TO THE PLANNING AND ZONING DEPARTMENT -- PLANNING AND DEVELOPMENT SERVICES WILL TAKE THE REINS FROM THERE. AND THEY WILL PUT OUT THE PUBLIC NOTICES THAT ARE REQUIRED. AND THEN THE PLANNING AND ZONING COMMISSION WILL CONDUCT A HEARING ON ITS AND GIVE PUBLIC INPUT . AFTER THAT PROCESS HAPPENS , AND THEN CITY COUNCIL GETS IT. CITY COUNCIL HAVE TWO READINGS. THEY WILL HAVE A FIRST READING, WHICH SETS IT IN THE AGENDA AND MAKE THE PUBLIC AWARE. THE SECOND MEETING IS WHERE YOU TYPICALLY HAVE ANOTHER OPPORTUNITY FOR PUBLIC INPUT IN THIS. GRAY SKIPPED OVER A WHOLE LOT OF HISTORY , BUT THIS HAS BEEN A VERY INCLUSIVE -- AS INCLUSIVE I THINK AS WE CAN POSSIBLY GET IT. WITH TAYLOR COUNTY PARTICIPATING. RANDY WAS ON THIS COMMITTEE , CITY OF TY , WE CREATED ITS OWN AIRPORT ZONING ORDINANCE FOR DAIS .

THEY WILL GO THROUGH THEIR PROCESS SEPARATELY FROM US.

OURS IS A REVISION TO THE EXISTING ORDINANCE. IT INCLUDES THE EXTRA TERRITORIAL JURISDICTION FOR THE CITY OF ABILENE, WHICH INCLUDES DAIS, IT INCLUDES THE VIEW CAP -- THEY WERE ALSO A PARTICIPANT IN THIS. THEY HAVE SIGNED OFF ON THIS. THEY ARE REPRESENTATIVE. THEY STILL HAVE THE OPPORTUNITY TO VOICE THEIR SUPPORT , OR ANY OBJECTIONS TO IT. BUT WE DO NOT ANTICIPATE ANY, HAVING VETTED , THIS IS A DRAFT VERSION 7 YOU'RE LOOKING AT. WE HAVE BEEN THROUGH THAT MANY DRAFTS OF THIS THROUGHOUT , SINCE 2018. THIS BEGAN AFTER WE BEGAN THE -- ADOPTION IN THE SUMMER OF 2018. THE COUNCIL ADOPTED IN JULY, 2018. THEN WE BEGAN THE IMPLEMENTATION PROCESS THE FINAL -- FOLLOWING YEAR WHEN WE GOT A BROAD DECO GRANT FROM THE DEPARTMENT OF DEFENSE. IT HAS BEEN QUITE THE DEAL. AND I KNOW THE THREE OF US, RANDY, GRAY AND MYSELF, ARE READY TO PUT THIS TO BED. IT HAS BEEN THROUGH A LOT OF INPUT. AND

STAKEHOLDER INVOLVEMENT. >> ANY QUESTIONS? CAN I GET A MOTION TO APPROVE THE UPDATING OF THE AIRPORT ZONING

ORDINANCE? >> SO MOVED.

>> SECOND . >> JAMES AND RANDY. ANY

[01:20:02]

>> AMEN. >> I THINK GRAY, RANDY, AND I WILL POP A BOTTLE OF CHAMPAGNE OR SOMETHING WILL MAKE IT PAST

THE CITY COUNCIL. >> SOMETHING LIKE THAT .

>> WHERE WERE YOU THE LAST 10 YEARS?

[EXECUTIVE SESSION]

>> WE HAVE EXECUTIVE SESSION, DON?

>> WE CAN GO TO EXECUTIVE SESSION. I JUST HAD TO UPDATE YOU ON A TENANT ISSUE. JUST A QUICK UPDATE.

>> 4:53. PURSUA

>> OKAY. RETURN FROM EXECUTIVE SESSION AT 5:08 . ITEM NUMBER NINE. NEXT BOARD MEETING IS SEPTEMBER 11TH, COUNCIL CHAMBER'S. MARKETING IS SEPTEMBER 4TH, AT THE AIRPORT .

ON THAT, I WOULD LIKE A MOTION FOR ADJOURNMENT.

>> I WILL MOVE. >> RANDY .

>> SECOND . >> JAMES.

* This transcript was compiled from uncorrected Closed Captioning.