[6. Discussion and Action to Recommend Approval of the Terminal Expansion and Improvements Phase 1 Guaranteed Maximum Price with Linbeck Construction.]

OKAY. HEARING NONE THAT MOTION PASSES.

IN THE INTEREST OF TIME WE ARE GOING TO MOVE ITEM 6 AHEAD OF ITEM 3 AND SCOTT PITT WITH LYNN BECK IS HERE TO GUIDE US THROUGH DISCUSSION AND ACTION RECOMMEND APPROVAL TO THE TERMINAL EXPANSION AND IMPROVEMENTS PHASE ONE GUARANTEED MAXIMUM PRICE.

ANYTHING YOU WANT TO SAY BEFORE WE JUMP IN ON THAT?

>> DO YOU WANT TO INTRODUCE OUR NEW BOARD MEMBER?

>> THANK YOU FOR THE REMINDER COME I'M SORRY.

MEETING NUMBER 2 IN AND I'VE ALREADY FAILING, FORGIVE ME.

KELSEY MANGRUM IS OUR NEWEST -- THIS IS HER FIRST MEETING THAT'S OKAY, THAT'S ALL RIGHT, WE ARE GLAD YOU WERE HERE TO BE PART OF

THIS BOARD TO. >> I'M GLAD I'M FINALLY HERE.

I'M A COUPLE MONTHS LATE BUT I'M FINALLY HERE.

I'M DR. KELSEY MANGRUM COME I'M THE OWNER OF HOLLAND HEARING CENTER I'VE OWNED IT FOR ABOUT. ORIGINALLY FROM FAR WEST TEXAS, ALPINE AREA. I HAVE A SON, 11-YEAR-OLD SON RYAN AND A 6-YEAR-OLD DAUGHTER LANDRY.

WE HAVE BEEN HERE FOR ALMOST 11 YEARS NOW.

>> THE CHAIR: THANK YOU. >> AWESOME.

THANKS. WE SAID HIGH I JUST MOVED ON -- MY FAULT. ANYTHING ELSE BEFORE WE GET TO

THAT? >> WE APPRECIATE YOU BEING FLEXIBLE ON THE AGENDA. SCOTT PITT CAME OVER HERE FROM FORT WORTH, HE NEEDED -- HE CAME OVER LAST MINUTE AND HE NEEDS TO GET BACK FOR A FAMILY TRIP THIS EVENING.

APPRECIATE YOU MOVE THE GET UP TO THE FRONT OF THE AGENDA TO CONSIDER THIS STEP ONE, PHASE ONE OF OUR TERMINAL PROJECT THAT WE ARE EXCITED TO BRING TO YOU TODAY.

WE WENT THROUGH THE PROCESS. LYNN BECK, WE BROUGHT THEM ON BOARD AND YOU GUYS TO PROVE THEM IN NOVEMBER.

THEY HAVE BEEN PART OF THE DESIGN TEAM ALONG WITH PARK HILL AND CITY STAFF SINCE THAT TIME. WE'VE BEEN THROUGH LOTS OF ITERATIONS OF OUR DESIGN PARTICULARLY IN PHASE ONE TREND.

WE HAVE A FINAL PRICE NOW, THAT IS $20 MILLION, 20 MILLION, SEVEN OR $10,569 IS THE FINAL PROPOSAL WE HAVE.

ABOUT A MONTH OF VALUE ENGINEERING THE ORIGINAL PRICE, WE ARE VERY PLEASED TO BRING THIS TO YOU.

IT'S A LITTLE BIT MORE ABOUT A MILLION DOLLARS MORE THAN WHAT WE HAD IN MIND EARLY IN THE Y YEAR.

THAT IS AN IMPROVEMENT FROM THE $24,957,614 ORIGINAL PRICE THAT WE HAD BASED ON THE BIDS THEY RECEIVED IN JUNE.

A LOT OF HARD WORK WENT INTO GETTING US DOWN TO THE 20 MILLION LEVEL, WORKING WITH PARK HILL ARCHITECT AND THE C CITY. THIS IS WHILE IT IS ABOUT A MILLION DOLLARS MORE THAN WHAT WE HAD WANTED ORIGINALLY, IT DOESN'T GET US THE PHASE ONE THAT WE WANT TO.

NOTHING THAT IS GOING TO TAKE AWAY FROM THE OVERALL SIZE OF PHASE ONE, 4700 SQUARE FEET ADDITION TO OUR BOARDING AREA AS

[00:05:05]

WELL AS HVAC FOR THAT AREA, FIRE SUPPRESSION SYSTEM, SPRINKLER SYSTEM IN THE BUILDING WHICH WE DO NOT HAVE RIGHT NOW AND OTHER FEATURES AS WELL AS THE OVERALL AMBIENCE AND DESIGN YOU GUYS HAVE SEEN THROUGHOUT THE DESIGN PROCESS.

WITH THAT, WE WILL BRING MR. PITT UP TO ADDRESS THE PROCESS AND OVERALL IF YOU WOULD COME UP TO THE MIC PLEASE.

>> MY NAME IS SCOTT PITT I WORK FOR LYNN BECK CONSTRUCTION, AND THE GENERAL MANAGER WE ARE BASED OUT OF FORT WORTH.

STARTING AN OFFICE IN ABILENE LATER THIS YEAR, I HAVE GROWN TO LOVE ABILENE I COULDN'T BE MORE THANKFUL TO BE PART OF THIS PROJECT, WE ARE EXCITED ABOUT IT FROM THE MOMENT WE HEARD ABOUT IT AND VERY THANKFUL TO WORK AMONG THE COLLABORATIVE TEAM THAT WAS CREATED WITH THE CITY OF ABILENE.

I'M A FIRM BELIEVER IN PROCESS AND THE PROCESS THAT WAS CHOSEN FOR THIS PROJECT I THINK HAS BEEN SUCCESSFUL.

I WILL GIVE YOU A LITTLE BIT OF UNDERSTANDING WHAT THAT MEANS.

THE PROCESS THAT WAS CHOSEN HERE, A HIGHLY COMPLEX PROJECT.

IT'S NOT A BOX ON THE FIELD IT'S GOT A LOT OF MOVING PARTS AND THE CHOICE THAT WAS MADE, THANKFULLY WE ARE PART OF THE TEAM, THE CHOICE THAT WAS MADE TO GO WITH THE PROCESS HIRING A CONTRACTOR EARLY, ARCHITECTS ARE TYPICALLY ALWAYS HIRED EARLY.

TO HAVE THE COHESIVENESS THAT WE HAVE SEEN ON THIS PROJECT SPECIFICALLY REALLY LED TO THE SUCCESS THAT DON COMMUNICATED TO. WE ARE IN A TOUGH MARKET, I THINK THERE'S NOBODY IN HERE WHO'S A STRANGER TO WHAT'S HAPPENING AROUND HERE. WE DID FEEL SOME OF THAT IN THE PRICING BUT THE TEAM REALLY WORKED HARD TO ANALYZE WITH THE MONEY IS BEING SPENT ON THE $24 MILLION NUMBER.

THEN AND A SMART WAY TO GO ABOUT ITEM BY ITEM, WHAT CAN WE DO THAT DOESN'T NEGATE THE PERFORMANCE LONG TERM OF WHAT'S BEEN SELECTED AND LOOK FOR DIFFERENT MANUFACTURERS OR DIFFERENT WAYS TO SKIN THE CAT? WHEN YOU GO WITH A DIFFERENT PATH YOU DON'T GET THE OPPORTUNITY TO MITIGATE THE COST THE WAY WE WERE IN THE TEAM WAS ABLE TO DO ON THIS JOB.

I REALLY APPLAUD THE CITY OF ABILENE, DON AND HIS TEAM, HIGHLY COLLABORATIVE ARCHITECT, THEY'VE WORKED REALLY WELL WITH OUR TEAM. ANY QUESTIONS?

>> TALK A LITTLE BIT ABOUT THE SURPRISE OF THE ORIGINAL ESTIMATE AND IF YOU CAN, IF YOU KNOW WHAT WERE SOME OF THE THINGS YOU EITHER HAD TO CHANGE OR HOW DO WE GET DOWN TO WHERE WE ARE? ARE BEGETTING WHAT WE WANT OUT OF IT, THAT SORT OF THING IF YOU CAN.

>> I'M GOING TO PICK SOME OF THE ITEMS THAT WERE WHAT WE CALL LOW-HANGING FRUIT AFTER LOOKING AT THE NUMBERS.

WE ARE ABLE TO COLLECTIVELY IN AN EDUCATED WAY UNDERSTAND -- WE DON'T NEED THAT. THERE WAS CONTEMPLATION OF APRON, THE AMOUNT OF SQUARE FOOTAGE OF APRON THAT WAS IN OUR ORIGINAL 24.9 NUMBER AFTER LOOKING AT DATA AND DIGESTING THE DETAILS OF THAT IT WAS UNDERSTOOD WE DON'T NEED THAT ENTIRE SQUARE FOOTAGE AND I THINK THERE WAS ANOTHER ITEM WHICH WITH HEAVY DUTY APRON, AIRCRAFT CONCRETE YOU GOT DIFFERENT LEVELS OF MIXED DESIGN AND ONE THAT WAS IN ORIGINAL NUMBER WAS -- I DON'T REMEMBER THE NAME OF THE P501, VERY HIGH DOLLAR DESIGN OVER $200 PER YARD TO.

A COMMON ONE WAS 160 AND WE WERE ABLE TO BOTH DECREASE THE SQUARE FOOTAGE AND I DON'T REMEMBER TO WHAT EXTENT WE SUBTRACTED LIKE 4,000 SQUARE FEET. ALSO WHEN CERTAIN PORTIONS OF IT WE WERE ABLE TO GO TO DIFFERENT DESIGN.

THAT IS MORE APPLICABLE TO THE TRAFFIC THAT'S RECEIVING BECAUSE NOT RECEIVING THERE. THAT SAVED ABOUT $800.

THAT'S LOW-HANGING FRUIT ALMOST WITHIN A FEW DAYS, PARK HILL CREATED AN EXHIBIT IN A GREAT WAY.

WE TURNED AROUND, WE WERE ABLE TO TAKE A STAB AT THOSE PRETTY

[00:10:06]

QUICK. >> ON A HIGH LEVEL A LOT OF WHAT WE LOOKED AT WAS THEIRS PAVING THAT COULD BE SIMPLIFIED, THERE WERE SOME MATERIALS THAT WERE NOT HIGHLY VISIBLE TO THE PUBLIC THAT ARE MORE VISIBLE TO STAFF AND INSTEAD OF HAVING A HIGH STONE COST THERE WE WENT TO A METAL PANEL BECAUSE THAT IS JUST FINE IN ANY SERVICE RELATED AREA.

THERE ARE OTHER THINGS LIKE LOOKING AT CEILINGS AND LOOKING AT ALTERNATIVES FOR DIFFERENT MANUFACTURERS AND WE WORKED THROUGH THAT WITH LOCAL TRADES TO IDENTIFY OTHER MATERIALS, OTHER PRODUCTS FOR THOSE EXACT SAME SOLUTIONS BUT JUST CHEAPER.

IT STILL MEETS THE DESIGN SPEC IT'S A DIFFERENT MANUFACTURER.

IT'S A GOOD BUYING A FORD F-150 VERSUS A CHEVY 1500, THEY'RE BOTH TON TRUCKS. TRY TO DO THAT THROUGH A WHOLE FACILITY. THE FIREPLACE SADLY IS ONE KEY ITEM THAT DIDN'T GET TAKEN OUT. AS A FISCAL THING THEY WERE

$100,000? >> $95,000 APIECE.

I TOLD THE TEAM, I SAID I DON'T KNOW IF WE WOULD'VE LEFT THOSE AND IF WE DIDN'T HAVE A BUDGET PROBLEM, 190,000 TOTAL.

>> WE ALL LOVED THEM. >> THERE WAS A LOT OF DISCUSSION THERE MIGHT BE SOME PEOPLE ON THIS BOARD GOING THAT'S GOOD TO.

>> WE HAD A LOT OF BANDWIDTH, A LOT OF SHOULDER RUBBING ON NOT WANTING THEM FULL ATTACK -- I THINK THAT WOULD BE GOOD FOR THE AESTHETICS OF THE AIRPORT AND STUFF LIKE THAT.

SOME OF THE OTHER THINGS I WANT TO KNOW IS UNDERNEATH THE GENERAL CONDITION ON THIS, WHAT IS THAT BREAKOUT OF DIVISION I TREND, THE $2 MILLION PERTAIN TO.

>> GENERAL CONDITIONS TRADITIONALLY IS STAFF.

THAT'S OUR PEOPLE, THE VAST MAJORITY OF THAT IS PEOPLE COULD BE OFFICERS, TEMPORARY FENCING, THAT'S WHAT WE WOULD CALL CUSTODY AND THE VAST MAJORITY OF THAT FOR AN 18 MONTH PERIOD IS

THE STAFF WE HAVE ON SITE. >> SINCE THIS PROJECT AREA IS WITHIN WHAT WE CALL THE SECURED AREA OF THE AIRPORT WE HAD TO FENCE A LOT OF IT OUT. THERE'S A LOT OF COST IN THIS I BELIEVE THAT'S WHERE YOU PUT IT, FENCING TO TAKE THE AREA OUT OF OUR SECURITY AREA. SOME CONTRACTORS AND SUBCONTRACTORS CAN WORK WITHIN THAT AREA AND BRING THE TOOLS IN THEY NEED TO WITHOUT VIOLATING TSA REGULATIONS.

WE HAVE TO FENCE IT COMPLETELY OUT OF OUR SECURED AREA.

>> OTHER ITEMS, I DON'T KNOW WHAT SHEET YOU'RE LOOKING AT BUT THERE MIGHT BE ANOTHER ITEM CALLED GENERAL REQUIREMENTS.

JUST LAYOUT DUMPSTERS TO HAUL OFF AND TRASH, PORTA-POTTIES FOR RESTROOM BREAKS AND THAT KIND OF THING.

THE COMBINATION OF THOSE TWO IS WHAT THAT INCLUDES.

LIKE I SAID WE'VE GOT FIVE PEOPLE ON THE PROJECT.

WE ARE AT CERTAIN PORTIONS OF THE JOB BUILDING A TWO DIFFERENT SPACES, WE AIM TO HAVE PEOPLE AT BOTH PLACES TO MAKE SURE WE ARE SAFE, WE ARE BEING MINDFUL OF ALL THE PUBLIC SPACE.

SOME OF OUR CONSTRUCTION OVERLAPS WITH THE FLOW OF TRAFFIC AND PEDESTRIANS. WE'VE GOT MONEY INCLUDED TO TAKE CARE OF THAT AND BE MINDFUL OF IT.

>> IF THAT'S PART OF THAT GENERAL REQUIREMENT, WHAT IS THE CONSTRUCTION CONTINGENCY C -- IN OTHER WORDS, IF YOU'RE TELLING ME THAT THERE IS CONTINGENCY IN THERE FOR UNSEEN THINGS ARE OPERATING COSTS, WHAT WOULD BE THE CONSTRUCTION CONTINGENCY

THAT YOU HAVE? >> THE CONTINGENCY IS COMPLETELY OUTSIDE OF THE GENERAL REQUIREMENTS AND GENERAL CONDITIONS. IS NOT INCLUDING UNFORESEEN.

[00:15:02]

THAT IS LITERALLY A PERSON BEING PAID 40 HOURS A WEEK IN HIS OR HER SALARY AND THAT IS WHAT GENERAL CONDITIONS -- WE WOULD BE GIVING YOU AN INVOICE. WE GOT FOUR PORTA JOHN'S ON THE JOB YOU PAY THOSE FOUR PORTA JOHN'S ON THE JOB.

CONTINGENCY IS NOT RELATED ON THOSE ITEMS, SORRY IF I CONFUSE THE MATTER ON THAT. CONTINGENCY IS RELATED TO TWO UNKNOWNS OR SCOPE GAPS, BUYOUT ISSUES AND THAT KIND OF THING WE DON'T NECESSARILY HAVE CONTROL OVER WHAT SHOULD BE PART OF OUR

GMP, DOES THAT MAKE SENSE? >> THAT MAKES SENSE.

I GUESS MY QUESTION, A FOLLOW-UP WOULD BE WHAT'S GOING TO TRIGGER THAT CONTINGENCY? IS THERE AN APPROVAL RATE THAT HAS TO GO ON THAT CONTINGENCY IN ORDER TO SPEND THAT MONEY? OF THE MONEY IS NOT SPENT, DOES THAT MONEY COME BACK TO US?

>> STARTING WITH YOUR LAST QUESTION IS YES.

ANY DIME WE DON'T SPEND COMES BACK TO THE CITY, THAT'S IN THE CONTRACT. I BELIEVE THE CONTRACT ON THIS PARTICULAR JOB MEANS IF I'M ABOUT TO USE CONTINGENCY I GO AND TALK TO SEAN AND DAWN ABOUT IT, THEY GET APPROVAL.

IT PROBABLY HAS LANGUAGE THAT IS NOT UNREASONABLY WITHHELD TO.

I WOULD JUST RUN A SCENARIO THAT -- LET'S SAY I SIGN UP ONE OF THESE NUMBERS, I SET UP ON THE NUMBER -- I WOULD PROBABLY USE CONTINGENCY OF THE SECOND PERSON IN LINE WAS 50 GRAND M MORE. I TELL THEM WHAT HAPPENED, WE SIGNED UP A GUY THAT WENT OUT OF BUSINESS AND THEREFORE I HAVE TO GO GET A DIFFERENT PERSON. THAT WOULD BE A SCENARIO WHERE WE WOULD USE CONTINGENCY AND IT'S NOT ADDING A CHANGE, I'M JUST MOVING MONEY FROM THERE TO PAY FOR SOMEBODY IT'S MORE

EXPENSIVE. >> THESE LINE ITEMS THAT YOU SEE, THEY INVOICE BASED ON THOSE LINE ITEMS. EACH PAY REQUEST IS GOING TO BE BROKEN OUT FOR THESE LINE ITEMS SO IF THERE IS SOMETHING UNDER THAT CONTINGENCY WE ARE GOING TO SEE -- IT HAS THE LIST UNDER THAT.

WE WILL BE DISCUSSING THAT PRIOR TO BEING ON PAYROLL REQUEST.

WE'LL BE DISCUSSING IT AND APPROVING IT.

SCOTT SAID THAT WAS PART OF THE CONTRACT AND IT IS, THE CONTRACT IN NOVEMBER. WE NEGOTIATED THAT WITH LYNN LIK TO MAKE SURE WE HAD THAT DISCRETION.

IT WASN'T JUST A BLANKET HUNDRED THOUSAND DOLLARS IN CONTINGENCY AND WE HAVE NO CONTROL OVER IT. THAT WAS NEGOTIATED IN THE

CONTRACT. >> THANK YOU.

>> THE CHAIR: ANYONE ELSE COME ANY QUESTIONS?

OKAY. >> I WILL SAY HAVING WORKED WITH WHAT A FEW CONTRACTORS OVER THE YEARS, THIS IS MY FIRST CONSTRUCTION MANAGER AT RISK AND IT HAS GONE VERY WELL.

I FEEL VERY COMFORTABLE USING LINBECK.

A VERY PROFESSIONAL ORGANIZATION.

IF Y'ALL HAVE SEEN HERITAGE SQUARE, THEY WERE THE GENERAL CONTRACTOR ON THAT AND THAT PROJECT ITSELF, THE QUALITY OF THAT PROJECT ITSELF SPEAKS FOR THEIR WORK.

WE WERE VERY HAPPY TO HAVE THEM PROPOSE ON THIS PROJECT LAST FALL AND IT HAS BEEN A VERY GOOD PROCESS GETTING TO THIS POINT.

WE HAVE TWO MORE PHASES TO GO WITH THEM AS WELL.

I'M LOOKING FORWARD TO IT. >> THE CHAIR: SCOTT, THANK YOU. I WILL TELL YOU, WE JUST BUMPED INTO EACH OTHER ABOUT A MONTH AGO WOULD HE QUICKLY SAID "I NEED TO TELL YOU, WE GOT OUR NUMBER AND IT'S QUITE A BIT MORE." HE TOLD ME THE NUMBER AND WE LAUGHED AND I TEXTED HIM LATER AND SAID WE DIDN'T HAVE SOMEBODY FROM LINBECK AT THE MEETING. THAT'S WHY YOU'RE HERE.

THANK YOU FOR DOING A LOT OF WORK BETWEEN THAT TIME AND HERE TO BE WHERE WE ARE TODAY AND THANK YOU FOR YOUR TIME COMING

OUT, WE APPRECIATE IT. >> APPLAUD THE TEAM, SOMETHING LIKE THIS ON ANY JOB AND IT DOES HAPPEN MORE OFTEN THAN WE WOULD EVER WANT WHERE PRICING COMES IN ESPECIALLY IN THIS MARKET HERE AND I APPLAUD THE TEAM THAT WAS PUT TOGETHER.

IT WOULDN'T HAVE JUST HAPPENED IF IT WAS ONLY US.

IT'S AN HONOR. >> BECAUSE OF YOUR COMMENT ABOUT WHERE WE WERE WITH THE INITIAL PRICING, PART OF THAT WAS ALSO

[00:20:04]

WHEN WE SAW SOME EARLY PRICING AND THAT HIGHER NUMBER CAME IN, WE WERE ALSO -- THIS IS HAVING A PARTNER TO WORK THROUGH THIS, WE WERE ALSO ANALYZING FOR SOME OF THE LONGER LEAD ITEMS IN PACKAGE AS PART OF PACKAGE ONE TRANSFER THEY WOULD BE ON HAND READY TO GO? AS WE REALIZE THOSE NUMBERS WERE NOT GOING TO WORK, IT BECAME THOSE ARE OUT AND THAT DROPS THE NUMBER BACK DOWN AS WELL. THAT'S A BIG CHUNK OF LIGHT CHANGED, IT WASN'T JUST CHANGE THAT CEILING TYPE TO THIS METAL

PANEL THERE, THERE IS A CHILLER. >> HUNDREDS OF THOUSANDS OF

DOLLARS. >> THANK YOU FOR YOUR TIME, SAFE TRAVELS, GOOD LUCK IN COLLEGE STATION, DON'T BECOME AN AGGIE WHILE YOU WERE THERE. ARE WE NOW DISCUSSION? TAKEN ACTION TO RECOMMEND THAT? WE WILL TAKE A MOTION, THERE'S NOT ANY MORE DISCUSSION AMONG ANYBODY.

>> I'LL MAKE THE MOTION. >> SECOND.

>> THE CHAIR: ALL IN FAVOR? AND HE OPPOSED.

[3. Airport Management Reports:

Review and Acknowledgment of Statistical Reports
Regulatory and Legislative Issues Update
Update on current projects and operations issues - Airport Access Road Project, Terminal Improvements/Expansion, Aircraft Ramp Project, Outstanding Maintenance/Repairs, Operations Events - Airport Tenant Issues/Performance, verify IFE of Kutchins & Groh contract
Budget Submittal - FY27 proposals (Parking Lot Revenue Control System Replacement, air service consultant, air service advertising, ARFF truck upfit.
Air Service and Business Development Update - Air Service Performance, PHX Flight
Land Development
Staffing
Facilities and Planning Committee Report

]

HEARING NONE, THAT MOTION PASSES.

THANK YOU AGAIN, APPRECIATE IT. AGENDA ITEM NUMBER 3, AIRPORT

MANAGEMENT REPORTS. >> WE WILL DIVE BACK INTO OUR REPORTS. WE HAVE MAY AND JUNE IN HERE, YOU CAN LOOK AT MAIA, I'M GOING TO FOCUS ON JUNE.

WE HAVE A LOAD FACTOR FOR ENVOY AMERICAN AIRLINES OF 76% THROUGHOUT THE MONTH OF JUNE. THAT WE HAVE A LOAD FACTOR FOR SKYWEST WHICH IS UNITED SERVICE HOUSTON AND DENVER OF 68%.

IT IS IMPROVING EVERY MONTH. I THINK WE WILL PROBABLY SEE ON UNITED THAT JULY WILL PROBABLY COME IN A BIT LOWER THAN JUNE.

I'M GETTING A WEEKLY REPORT FROM SKYWEST AND DO YOU SEE THE TREND AND IT STOPS TEN DAYS OUT AND I DON'T SEE ANYTHING FROM THEM AS FAR AS THE ACTUAL PERFORMANCE ON THE DATE OF THAT SERVICE UNTIL WE GET THE BILLING AT THE END. ITS HOLDING ITS OWN, IT NEEDS TO IMPROVE. WE WANT IT TO IMPROVE BUT TO BE AT THE 68% LOAD FACTOR IN JUNE IS NOT BAD.

THE SERVICE IS PERFORMING, NEED TO INCREASE THAT UP TO ABOUT 78%, EVERYBODY WOULD BE SUPER COMFORTABLE AT 78%.

JUNE ALSO FOR AN ENVOY, ALSO WAS 25 DAYS STARTING JUNE 5TH.

IT SEEMS TO BE DOING WELL AND THAT DEPARTS AT SIX: 30 IN THE MORNING AND ARRIVES AT 10:50:00 P.M.

WE HAD A LOT OF EXCITEMENT ABOUT THAT.

>> WHAT OF THOSE LOADS LOOK LIKE?

>> THEY HAVE LOOKED A LITTLE BIT LOWER THAN THE DFW FLIGHTS, IT

WAS A GOOD MOVE BY AMERICAN. >> NO WAY.

>> CLARIFICATION HE SAID IT LEAVES AT 6:30 IN THE MORNING.

>> YES. >> ENDED ARRIVES?

>> AT 10:53:00 P.M. >> P.M.

SPEAK OF THE INBOUND FLIGHT. >> THANK YOU.

IF YOU DEPART HERE AT 6:30 IN THE MORNING YOU'RE GOING TO GET TO PHOENIX AT 6:30 IN THE MORNING THERE.

>> THAT'S A 30 MINUTE FLIGHT. >> WITH THE TWO HOUR TIME

DIFFERENCE. >> THANK YOU.

>> THAT WORKED WELL. >> THAT'S GOOD TO KNOW.

>> IT'S A GOOD WESTBOUND CONNECTION JUST AS DENVER IS FOR

US NOW. >> I HAVE A QUICK QUESTION.

[00:25:07]

IF I'M LOOKING AT THE JUNE REPORT PERIODS 13,000 TO 70, IT SHOWS YEAR-TO-DATE FOR 2,647,000.

IF I LOOK BACK TO MAY IT WAS 46,000 5:30 SIX.

HOW TO THOSE THAT UP OUT OF CURIOSITY? MY MATH IN MY HEAD IF WE ARE DOING ABOUT 12,000 PER MONTH,

I'M JUST CURIOUS. >> WE'LL MAKE THAT CORRECTION FOR THE NEXT MEETING TO CATCH. YOU CAN SEE OVERALL, WE ARE UP 10% FOR THE YEAR. ARE PARKING LOT JULY 4TH WEEKEND, JUST AS WE WERE WATCHING IT FOR MEMORIAL DAY WEEKEND WE DIDN'T QUITE GET THERE BUT JULY 4TH WE WENT INTO PARKING, OVERFLOW PARKING, NORTH OF THE TERMINAL AREA.

WE SHUTTLED THEM OUT TO THEIR CAR.

I THINK WE ENDED UP WITH SOMEWHERE IN THE MID 30S, VEHICLES THAT WE DID THAT, WE DID THAT WITH.

FRIDAY MORNING, JULY 3RD ALL THE WAY THROUGH THE FIFTH, SUNDAY THE FIFTH AND JUST READY TO BRING THEM BACK.

THAT'S THE FIRST TIME WE'VE HAD TO DO THAT.

I'M EXCITED ABOUT THAT PROBLEM. WE ARE SOLVING THAT.

WE HAVE AN AGREEMENT, A TASK ORDER THAT SHOULD GET FINALIZED MAYBE LATER THIS WEEK. TO DESIGN A NEW PARKING LOT FOR EMPLOYEES BECAUSE OUR EMPLOYEES THE TERMINAL AREA EMPLOYEES ARE COULD NOT TERMINAL LOT AS WELL. WE THINK WE CAN GET ABOUT 90 TO 100 VEHICLES, EMPLOYEE VEHICLES OUT OF THE TERMINAL L LOT. THAT WILL RELIEVE US AND I'M EXPECTING US TO HAVE THAT DONE WELL BEFORE THANKSGIVING.

I WOULD LOVE TO HAVE IT DONE BEFORE LABOR DAY WEEKEND BUT I DON'T THINK THAT'S GOING TO HAPPEN.

I THINK IT'S PUSHING IT A BIT WITH THE CONTRACTOR AVAILABILITY

RIGHT NOW. >> THE AVIATION GUYS TO THE PARK

THERE AS WELL? >> THEY DO.

WE HAVE PARKING BADGES ISSUED TO ALL THEIR EMPLOYEES WHICH IS THREE: NEXT 50 OR SO. THEY HAVE THEIR OWN PARKING IN FRONT OF THEIR HANGERS, SOME OF THE PARK THERE.

A GOOD BIT OF THEM LIKE PARKING IN OUR PARKING LOT BECAUSE WE HAVE COVERED PARKING. WE WILL BE USING THIS NEW LOT FOR EMPLOYEES. SPEAKING OF PARKING, REVENUE WAS UP 33.4% FOR JUNE, FOR THE YEAR. EXCELLENT PERFORMANCE WITH THEIR PARKING LOT. IF YOU WANT TO LOOK AT AIRFARES, WE ARE SEEING -- I WANT TO GO TO THE ONE DATED JULY 21ST 2026 AND ALEX DOES THESE ONCE A MONTH ON A TUESDAY JUST TO MAINTAIN THAT SAME LEVEL. WE GO ONLINE TO UNITED AND AMERICAN'S WEBSITE AND JUST LIKE ANY OTHER CUSTOMER WOULD DO TO PURCHASE THEIR AIRFARE, WE LOOK AT IT 14 DAYS OUT AND 30 DAYS OUT. COMPARING ABILENE, MIDLAND IS AF AT DFW. WE CAN SEE WHAT ARE MOST LIKELY COMPETITION IS WHEN OUR CUSTOMERS ARE LOOKING AT AIRFARES, THEY ARE TYPICALLY LOOKING AT ABILENE AND WE HOPE, NOT JUST DFW BUT WE ARE LOOKING AT OUR TOP DESTINATIONS OUT OF HERE FROM OUR 2019 STUDY. ARE PY HIGH, SOME THAT IS THE HIGHER FUEL COSTS BECAUSE OF THE STRATA STRAIT OF HORMUZ ISSUES BUT WE

[00:30:03]

ARE IN A HIGH DEMAND MARKET RIGHT NOW.

WHEN YOU'VE GOT LOAD FACTORS WELL ABOVE 70%, THAN THEY'RE GOING TO START -- AIRLINES ARE GOING TO START CHARGING MORE FOR IT TO. SKYWEST IS TRYING TO STABLY COMPETITIVE AND ATTRACTING PEOPLE TO THEIR SERVICE IN DENVER IN PARTICULAR BUT OTHER CITIES AS WELL THEY CAN KIND OF CONTROL. SKYWEST CONTROLS THE PRICING STRICTLY BETWEEN ABILENE AND DENVER AND ANYTHING BEYOND THAT.

A UNITED AIRLINES COMPONENT. DIRECT TO HOUSTON, DIRECTOR DENVER, SKYWEST CONTROLS THAT PRICING EXCLUSIVELY.

THEY ARE TRYING TO KEEP THAT COMPETITIVE BUT THEY ARE HAVING TO ALSO FACE THE REALITY OF HIGHER FUEL COSTS.

FARES ARE UP ACROSS THE BOARD AND ACROSS THE NATION TOO.

THAT'S JUST THE ECONOMY THAT WE ARE IN.

ANY QUESTIONS? OKAY.

REGULATORY AND LEGISLATIVE ISSUES, REALLY NOTHING RIGHT NOW. CONGRESS IS ABOUT TO GO INTO AUGUST RECESS. WE ARE LOOKING AT -- THEY DID PASS, THE HOUSE PASSED A BUDGET, CONTINUING RESOLUTION TO GET US TO DECEMBER, PAST OF THE ELECTIONS.

WE'LL SEE WHAT SENATE DOES WITH THAT IN THE NEXT WEEK OR TWO BEFORE THEY LEAVE. THAT'S JUST TO KEEP US FROM GOING -- I DON'T THINK THEY EXPECT A FULL BUDGET BILL APPROVAL FOR THE ELECTIONS. THE HOUSE DID THIS PROACTIVELY A LITTLE BIT EARLY THIS TIME. I THINK IT'S KIND OF JUST RECOGNIZING THE MOOD UP THERE. CURRENT PROJECTS -- THE AIRPORT ACCESS ROAD, IT HASN'T CHANGED A LOT IN TERMS OF VISIBLE PROGRESS OVER THE PAST MONTH. THEY ARE INSTALLING WATER LINES UNDERNEATH THE ROAD RIGHT NOW BEFORE THEY PAVE OVER THAT PARTICULAR SECTION WHERE WATER AND SEWER LINES ARE GOING.

BUT ONE THING YOU WOULD SEE IS THE SIGNAGE, OUR MONUMENT SIGNS THAT ARE GOING UP AT THE INTERSECTION OF AIRPORT BOULEVARD. THEY LOOK VERY BIG, WOW.

IT IS GOING TO BE IMPRESSIVE. I THINK IT WILL HAVE A REALLY GOOD FEEL TO IT. THE PROJECT IS ITSELF GOING WELL. WE ARE STILL -- I DON'T REMEMBER THE EXACT DATE BUT A NOVEMBER FINISH DATE FOR THAT IN THE WAY THEY WERE GOING AT FIRST I WAS GOING THIS IS GOING TO BE DONE IN SEPTEMBER. THERE'S STILL A LOT OF WORK TO BE DONE OTHER THAN JUST PAVING WHICH IS -- THERE'S A FEW SECTIONS THAT NEED TO BE PAVED NOW.

THE TRAFFIC SIGNAL LIGHT STILL HAS TO COME IN, IT'S ON ORDER.

LOT OF THE LANDSCAPING AND IRRIGATION AND STREETLIGHTS STILL HAVE TO BE SET. TERMINAL IMPROVEMENTS EXPANSION, YOU JUST HANDLED PHASE ONE TREND.

WE ARE READY TO GO WITH THAT. WE EXPECT -- COUNCIL WILL SEE THIS PROJECT TOMORROW, THEY WILL SEE THAT TOMORROW AND IF IT IS APPROVED, THEN WE WILL ISSUE A NOTICE TO PROCEED THAT WILL BE EFFECTIVE AUGUST 3RD TO. WE ARE PLANNING A GROUNDBREAKING CEREMONY FOR THIS THAT WE WILL GET THAT INFORMATION OUT TO YOU, WE HAVE A TENTATIVE DATE BUT I DON'T WANT TO SAY IT JUST YET I'M WAITING ON CITY MANAGER TO CHECK HER CALENDAR AND MAKE SURE THAT IT WORKS FOR HER AND COUNSEL NUMBERS AS WELL.

WE'LL PUT THAT OUT AND INVITE A LOT OF PEOPLE TO COME CELEBRATE.

THE AIRCRAFT RAMP PROJECT, THAT PROJECT IS COMPLETE.

[00:35:03]

WE HAVE ACCEPTED THAT PROJECT FROM WEBER CONSTRUCTION, AND ALSO TIED TO THAT IS ITEM 4 -- WE ARE -- THAT BUDGET, THAT PROJECT CAME IN ABOUT $790,000 UNDER BUDGET.

THE CITY WILL BE GETTING THOSE FUNDS BACK AND WE WILL BE REDUCING THE CONTRACT BY THAT AMOUNT, IT'S ALREADY BEEN DONE, THE FORMALITY HAS BEEN DONE. WE WILL HAVE 790,000 TO APPLY TO FUTURE AIRPORT IMPROVEMENT PROJECTS AND ITEM 4 WILL ADDRESS ONE SMALL PIECE OF THAT. I WILL EXPLAIN THAT AT THAT TIME, THAT PROJECT IS DONE, WORKING WITH THE FOREST SERVICE ON WHEN THEY WANT TO OCCUPY THAT RAMP, I SHOULD HAVE AN UPDATE TO YOU AT THE NEXT MEETING OR BEFORE THROUGH AN EMAIL, I HAVE SENT THEM A TEMPORARY USE AGREEMENT TO GET THROUGH THE END OF THE YEAR, THE CALENDAR YEAR AND THAT GIVES US TIME TO NEGOTIATE A LONG-TERM LEASE WITH THE FOREST SERVICE AT A NEW MARKET RATE BECAUSE I HAVE ASKED THEM TO GET US APPRAISAL FOR AIRPORT PROPERTY, THAT WAY WE ARE WORKING WITH GOOD CURRENT VALUES AND CAN WITH A LOT OF CONFIDENCE SAY THIS IS MARKET RATE AND ENTER INTO A LONG TERM, 40 YEAR CONTRACT LEASE THEM.

MAINTENANCE REPAIRS, EVERYTHING IS KNOCK ON WOOD BUT EVERYTHING SEEMS TO BE WORKING. WE HAD A REVOLVING DOOR THAT WAS OUT FOR SEVERAL WEEKS THAT GOT WORKING LAST WEEK I NEED TO LEAVE TOWN MORE OFTEN. I WAS OUT SEVERAL DAYS LAST WEEKEND I CAME BACK AND TWO THINGS THAT WEREN'T WORKING WHEN I LEFT WERE WORKING WHEN I GOT BACK.

SEAN AND OUR MAINTENANCE SUPERINTENDENT AND THE CREW GOT THINGS DONE WHILE I WAS GONE. MAYBE I'M HOLDING THINGS UP, I DON'T KNOW. OPERATIONS AND EVENTS, DO NOT -- CAN'T SAY WE'VE HAD ANYTHING OF NOTE IN THE PAST TWO MONTHS.

IT HAS BEEN BUSY, VERY BUSY. THINGS HAVE BEEN GOING WELL.

BUDGET IS ON TRACK WITH THE CITY, THE CITY COUNCIL WILL RECEIVE THE BUDGET PROPOSAL FROM THE CITY MANAGER EITHER THIS FRIDAY -- POSSIBLY NEXT FRIDAY BUT I BELIEVE IT'S THIS FRIDAY AND WE WILL START BUDGET WORKSHOPS WITH THE CITY COUNCIL IN AUGUST. I BELIEVE THE FINAL VOTE ON THE BUDGET IS SCHEDULED FOR THE SECOND WEEK OF SEPTEMBER.

A LITTLE BIT LATER THIS YEAR THAN IT HAS BEEN IN PREVIOUS YEARS, BUT SOME OF THAT HAS BEEN BECAUSE OF THE GOOD NEWS THAT'S BEEN OUT IN THE PUBLIC THAT THE CITY HAS A LOT OF EXTRA REVENUE DUE TO THE ECONOMIC ACTIVITY IN TOWN.

SPENDING EXTRA MONEY IS NOT ALL THAT EASY, RIGHT? EVERYBODY WANTS SOMETHING. HAVING TO MAKE THOSE DECISIONS IS JUST AS HARD AS HAVING TO MAKE DECISIONS OF WHAT TO CUT WHEN YOU DON'T HAVE A GOOD YEAR. IT'S DEFINITELY A GOOD NEWS SCENARIO. WE ARE GOING TO TALK A LITTLE BIT ABOUT LAND DEVELOPMENT IN AN UPCOMING DISCUSSION.

STAFFING IS GOOD, WE ARE FULLY STAFFED RIGHT NOW.

VERY GLAD ABOUT THAT BECAUSE THERE ARE OTHER DEPARTMENTS AND DIVISIONS EVEN WITHIN THE DEPARTMENT OF TRANSPORTATION SERVICES THAT ARE STRUGGLING RIGHT NOW TRYING TO FIND PEOPLE TO FILL VACANCIES. I THINK THE FACILITIES AND PLANNING SUBCOMMITTEE REPORTED AT THE LAST MEETING, ANYWAY WE DID NOT HAVE ONE LAST MONTH, MAYBE IT WAS MADE THAT WE HAD A MEETING IT HAS BEEN SO LONG. EVERYTHING IS DOMINATED BY THE

[00:40:04]

TERMINALS. I THINK WHAT WAS REALLY THE BIGGEST DISCUSSION. GOOD ON THAT?

[4. Discussion and Action to Recommend Approval of an Amendment to the Task Order with Garver for Construction Administration for the Air Tanker Ramp Project.]

>> THINK YOU CAN APPRECIATE THAT WE WERE MOVED ITEM 4 DISCUSSION AND ACTION RECOMMENDED APPROVAL OF A COMMITMENT TO THE TASK ORDER WITH CONSTRUCTION ADMINISTRATION FOR THE AIR

TANKER RAMP PROJECT. >> SO, GARVER IS OUR AIR SITE ENGINEER, WE HAVE A CONTRACT WITH THEM TO HANDLE OUR ENGINEERING INSIDE THE FENCE, BASICALLY.

THEY DID THE DESIGN AND THE CONSTRUCTION MANAGEMENT OF THE AIR TANKER RAMP. THE PROJECT GOT OFF TO A VERY ROCKY START, SOME OF YOU MAY RECALL JUST TALKING ABOUT VAT, THE DELAYS, THE FRUSTRATIONS WITH RELOCATING THE GAS LINE ACROSS THAT CONSTRUCTION AREA AND RELOCATING FAA FIBER THAT'S RUNNING FROM ANTENNAS TO THE AIR TRAFFIC CONTROL TOWER.

IT CAUSED A LOT OF ISSUES, A LOT OF BACK AND FORTH WITH THE CONTRACTOR, WITH THE SUBCONTRACTORS, WITH -- ONCE WE GOT PAST THAT, THINGS SMOOTHED OUT AND WENT WELL BUT WE GOT OFF TO A ROCKY START FIRST THREE MONTHS OF THAT PROJECT.

BECAUSE OF THE COORDINATION WITH THAT.

THE TIME IT TOOK FOR GARVER TO BE INVOLVED IN ALL OF THOSE DISCUSSIONS WAS FAR MORE THAN WHAT THEY ANTICIPATED WHEN THEY GIVE US THE TASK ORDER. AS WE WERE CLOSING THIS PROJECT OUT I WAS TALKING WITH OUR LEAD ENGINEER ON THIS, SARAH ANDREWS.

SHE SAID WE HAD EXCEEDED THE NUMBER OF HOURS, PROFESSIONAL HOURS THEIR TEAM HAD TO SPEND ON THIS PROJECT BY THE VALUE OF $100,000. SHE WASN'T ASKING ME TO COVER THAT. I FOUND OUT WE ARE GOING TO GET $790,000 BACK, I WANTED TO HELP GARVER OUT WITH NOT HAVING A LOSS OR AS BIG OF A LOSS ON THIS PROJECT.

GARVER HAS BEEN GOOD TO US THEY BEEN OUR ENGINEER SINCE 2012.

IF THEY NEED ANYTHING, I'M TALKING ABOUT MANY TIMES, CAN YOU HELP OUT WITH THIS? CAN YOU HANDLE THIS AIRCRAFT -- THEY DON'T CHARGE US FOR THAT. THEY NEVER HAD TO PICK OUT THEY ARE GOOD ABOUT DEVELOPMENT CONCEPTS ON THE AIRPORT.

, HUNDRED 50,000, WE HAVE THIS MONEY COMING BACK.

WHAT ABOUT THE $75,000 INCREASE TO THE TASK ORDER.

THE INCREASE OF THE CONSTRUCTION MANAGEMENT ORDER TO BRING IT UP WITH $75,000. THIS IS FUNDED BY THE $790,857.57 COST REDUCTION AND THE ACTUAL PROJECT COSTS FOR CONSTRUCTION, CLOSING THAT PROJECT DOWN.

THAT'S MY PROPOSAL TO YOU. WE INCREASED THEIR TASK ORDER TO CLOSE THEM OUT WITH AN INCREASE OF 75,000.

>> ANY DISCUSSION? ANY MORE QUESTIONS? HEARING NONE, DO WE HAVE A MOTION TO INCREASE THE TASK ORDER BY $75,000 AND RECOMMEND AT THAT APPROVAL TO THE TASK ORDER. SECOND? ALL IN FAVOR? ANY OPPOSED?

[5. Discussion and Action to Recommend Acceptance of an FY26 Airport Terminal Program Grant in the amount of $5 Million.]

HEARING NONE, THAT MOTION PA PASSES.

ITEM 5 IS OUR DISCUSSION AND ACTION TO RECOMMENDED ACCEPTANCE OF THE FISCAL YEAR '26 AIRPORT TERMINAL PROGRAM GRANT IN THE AMOUNT OF $5 MILLION. THAT MAY NEED SOME EXPLAINING.

>> THIS SHOULD BE AN EASY ONE. WE ARE ACCEPTING $5 MILLION.

[00:45:04]

WE APPLIED FOR THE AIRPORT TERMINAL PROGRAM GRANT TO THE FAA. THE FY26 GRANT IS THE LAST YEAR OF ELIGIBILITY FOR THIS PROGRAM, THE PROGRAM SUNSETS AND LESS DOES SOMETHING MAGNANIMOUS, IT SUNSETS THIS YEAR.

WE APPLIED FOR $25 MILLION. I THINK WE HAVE DISCUSSED THAT WAY FOR EARLIER IN THE YEAR. WE APPLIED FOR 25 MILLION, THAT WAS ONE QUARTER OF THE TOTAL AVAILABLE FUNDS FOR AIRPORTS ARE SIZE, $100 MILLION. WE DIDN'T EXPECT 25 MILLION.

BUT YOU DON'T GET WHAT YOU DON'T ASK FOR.

IN TALKING WITH FAA, THEY WERE THINKING -- THE FAA OFFICES IN THE SOUTHWEST REGION WORKING WITH THEM THROUGHOUT EARLY IN THE YEAR BEFORE WE SUBMITTED IT OR EVEN AFTER WE SUBMITTED IT -- LET'S PLAN ON $10 MILLION. AS A BUDGET NUMBER TO FUND OUR TERMINAL PROJECT. SO WE DID, BUT WE WERE AWARDED $5 MILLION. WE ARE GRATEFUL FOR THAT AND WE HAD LETTERS OF SUPPORT FROM CONGRESSMAN ARRINGTON, LETTERS OF SUPPORT FROM SENATOR CORNYN, SENATOR CRUZ'S OFFICE WAS VERY SUPPORTIVE OF US. WE HAD GOOD CONGRESSIONAL SUPPORT FOR THIS BUT THE COMPETITION IS VERY HIGH FOR THIS. WE ARE GRATEFUL FOR THE $5 MILLION, THAT DOES LEAVE US SHORT GOING FORWARD IN OUR PLANNED BUDGET TO FUND PHASE TWO TRENTON.

THIS WAS GOING TO FUND PHASE ONE TREND, HAVING TO USE MORE BOND MONEY $5 MILLION MORE THAN WHAT WE HAD ANTICIPATED, BUT WE ARE STILL OUT THERE TRYING TO FIND ADDITIONAL WAYS TO MAKE THAT UP.

WE NOW HAVE THIS GRANT WE NEED TO ACCEPT AND WE NEED YOUR RECOMMENDATION TO TAKE COUNSEL TO ACCEPT THIS ATP GRANT FOR $5 MILLION. THIS ALSO HAS A 5% GRANT MATCH,

LOCAL GRANT MATCH. >> THE CHAIR: IS THERE A MOTION TO ACCEPT? MOTION AND A SECOND? ALL IN FAVOR? ANY OPPOSED? AND SEEING NONE THAT MOTION PASSES TOO.

>> ACCEPTING MONEY IS EASIER THAN SPENDING IT.

>> THE CHAIR: ALL THE TIME. >> I WANTED TO ASK DON A QUESTION. YOU MAY HAVE SAID THIS AND I MISSED IT. WHERE IS THE MATCH MONEY COMING FROM? SPEAK OF THE MUCH MONEY, GOOD QUESTION, COMING FROM OUR $20 MILLION GENERAL OBLIGATION BOND THE CITIZENS APPROVED LAST YEAR, MAY OF LAST YEAR.

WAS ALREADY PROGRAMMED TO DO SO. THANK YOU.

[7. Discussion and Action to Recommend Approval of a Convenient Store Lease and Operating Agreement.]

>> THE CHAIR: ITEM 7. >> OKAY.

BACK IN FEBRUARY WE WERE APPROACHED BY A COMPANY CALLED OILFIELD OUTPOSTS ABOUT -- THEY HAD AN INTEREST, THE NEW WE HAD A FORMER LEASE WITH A COMPANY TO BUILD A CONVENIENCE STORE ON AIRPORT PROPERTY AT THE INTERSECTION OF ARNIE ROAD AND HIGHWAY 36 JUST BELOW THE INTERSECTION WITH FM 18 AND WE MAINTAINED THAT IS STILL A GOOD LOCATION FOR A CONVENIENCE STORE. BUT THEY WERE REFERRED TO US BY JOSH RADER HERE LOCALLY. WE HAVE BEEN TALKING WITH WILL WHITE AND HIS BROTHER STEPHEN AND HIS TEAM, THEIR TEAM SINCE THAT TIME. WE HAVE REACHED A POINT NOW WHERE WE WANT TO CONTINUE THE NEGOTIATIONS, BUT I WANTED TO BRING THEM TO YOU AND LET YOU HUMBLE IT WILL INTRODUCE HIMSELF AND TALK UP A BIT ABOUT HIS COMPANY JUST SO YOU GUYS HAVE FAMILIARITY WITH WHO WE ARE DEALING WITH AND AS STAFF CONTINUES TO WORK ON NEGOTIATIONS AND TERMS FOR AN AGREEMENT THAT WE WILL BRING BACK TO YOU AT A FUTURE MEETING WOULD BE HAVE IT READY TO GO BUT I WANTED YOU TO HAVE SOME INPUT IN THIS AND HAVE A CHANCE TO ASK QUESTIONS.

I SENT YOU A LINK TO THE WEBSITE FOR ONE STORE.

THE CONCEPT AT THE AIRPORT IS DIFFERENT FROM THE CONCEPT FROM WHAT THEY ARE DOING IN WEST TEXAS.

[00:50:02]

I WANT TO KEEP THAT IN MIND. I ALSO SENT TO YOU WHAT THEY PROVIDED US IN FEBRUARY WHICH IS A VERY HIGH LEVEL CONCEPT OF WHAT'S THAT STORE WOULD LOOK LIKE.

I WANT Y'ALL TO BE COMFORTABLE AND HAVE A CHANCE TO ASK QUESTIONS AND TO DIRECT STAFF ON WE WOULD LIKE TO SEE THIS IN THE CONTRACT. WE ARE CURRENTLY TALKING WITH THEM ABOUT A COMMISSION OFF OF SALES RATHER THAN A LAND LEASE.

WE ARE WORKING WITH WILL AND HIS FOLKS ON COMING TO AN AGREEMENT ON WHAT THAT WOULD LOOK LIKE. THOSE NUMBERS ARE STILL IN FLUX SO I DON'T -- THEY WILL BE PRESENTED WHEN THEY COME TO YOU WITH THE AGREEMENT. WE'LL HAVE A CHANCE TO GO INTO EXECUTIVE SESSION. I WILL LET WILL COME UP COME UP INTRODUCE HIMSELF AND TALK ABOUT THE COMPANY AND WE CAN GO INTO EXECUTIVE SESSION AND TALK A LITTLE BIT MORE ABOUT WHAT THEY'RE PROPOSING TO US AND DISCUSS A LITTLE BIT MORE IN DETAIL THAT WE CAN DO IN A PUBLIC SETTING RIGHT NOW BECAUSE NOTHING -- IT'S ALL IN NEGOTIATION RIGHT NOW.

>> THANK YOU, THANK YOU FOR BEING HERE.

>> I'VE NEVER BEEN TO A MEETING WITH THE TV AND MY WIFE I TEXTED HER AND SHE FOUNDED AN END SAID IT'S KIND OF COOL.

ASK FOR INCLUDING ME AND THANKS FOR Y'ALL'S TIME.

I DIDN'T KNOW THERE WAS AN AIRPORT BOARD UNTIL THIS WEEK, IT SEEMS LIKE IT'S SUCH A CIVIC SERVICE THAT Y'ALL ARE DOING, THANK YOU ALL AGAIN. BACKGROUND THE PROJECT -- MY BROTHER AND I ARE ENTREPRENEURS. WE COME FROM ENERGY BACKGROUND I'M MORE OF THE CORPORATE SIDE HE IS MORE AN OILFIELD ENTREPRENEUR. WE ARE INTRODUCED LIKE DON MENTIONED EARLIER THIS YEAR. WE HAVE TWO LOCATIONS, THIRD UNDER CONSTRUCTION IN THE PERMIAN.

I CAN GET IN THE WHOLE STORY ABOUT HOW WE GOT INTO THAT.

IT'S BEEN ABOUT THREE YEARS NOW, RIGHT NOW WE ARE SERVING 16-100 CUSTOMERS A DAY. OUR FIRST STORE IS HIGH VOLUME AND WE ARE -- WE ARE BUILDING OUR THIRD STORE OUT THERE.

THIS IS A LITTLE DIFFERENT, OBVIOUSLY IN THE CITY AND WE ARE JUST EXCITED ABOUT -- I WAS DRIVING AROUND A LOT TODAY BECAUSE I GOT IN ON THE EARLY FLIGHT.

EXCITED ABOUT THE CITY AND THE OPPORTUNITY.

I DON'T KNOW IF Y'ALL HAVE ANY INITIAL QUESTIONS?

>> I WILL. >> GREAT.

>> HOW WILL IT BE DIFFERENT FROM THE ONES YOU HAVE IN THE OTHER

LOCATIONS? >> THEY ARE IN THE MIDDLE OF NOWHERE. OUR FIRST TWO AREN'T PAVED, OBVIOUSLY WE ARE GOING TO PAY FOR IT.

THE GENERAL CONCEPT, THE FOOTPRINT IS THE SAME.

OF THE CITY HAS BEEN EMPHASIZING HOT FOOD.

AT OUR FIRST STORE WE SELL A LOT OF HOT FOOD BUT WE WANT TO LEAN INTO THAT A LITTLE MORE HERE. THOSE WOULD BE THE PRIMARY DIFFERENCES. ANYTHING ELSE? I'M HAPPY TO TALK TERMS AND THAT KIND OF THING.

>> CAN YOU GIVE US AN IDEA OF WHAT MAKES YOU DIFFERENT FROM

OTHER QUICK STOP? >> YOU'RE NOT DEALING WITH A PILOT, YOU'RE DEALING WITH -- WE OWN THE MAJORITY OF THE BUSINESS. WE DO HAVE INVESTORS.

WE ARE ADAPTABLE AND THAT'S PART OF WHAT THE FOCUS IS ON THIS, WHY THERE'S AN OPPORTUNITY AND THERE MIGHT BE SYNERGY.

CONVENIENCE STORES HATE LEASES. THAT'S PART OF WHAT ALL THREE OF OUR FIRST THREE ARE ALL ON LEASED LAND AND THERE'S REASONS WHY TYPICALLY YOU SEE STORES AND GAS STATIONS HATE THAT BUT WE ARE WILLING TO DO IT. WE DON'T SEE THE WORLD IN THE SAME WAY AS THEY DO AND WE ARE MORE -- WE ARE WILLING TO BE

[00:55:06]

MORE FLEXIBLE. WE ARE GOING TO REBRAND FOR THIS STORE, I'M THINKING BIG COUNTRY OUTPOST BUT OPEN TO FEEDBACK.

>> I DON'T KNOW IF I HAVE ANY QUESTIONS I WOULD JUST SAY I'M EXCITED FOR THE OPPORTUNITY FOR THIS STORE AT THIS PARTICULAR LOCATION. WITH PROXIMITY TO THE FAIRGROUNDS, A Y ESSAY WHICH IS OUR BASKETBALL AND SOCCER COMPLEX YOU SAW BY THE AIRPORT WE HAVE NOT YET UNFORTUNATELY BEEN ABLE TO HOST THE SOCCER TOURNAMENTS WE WANT TO DO YET BECAUSE OF LACK OF HOTEL ROOMS OR THE COST.

I KNOW PEOPLE ARE STAYING AWAY OUTSIDE OF ABILENE TO COME TO OUR POSSIBLE TOURNAMENTS AND VOLLEYBALL TOURNAMENTS WE ARE HAVING THERE. I THINK IT'S A GREAT OPPORTUNITY, IF YOU WILL LEAN INTO THAT I'M NOT GOING TO TELL YOU HOW TO CONDUCT YOUR BUSINESS BUT YOU PROBABLY ALREADY KNOW THAT AND I THINK IT'S A GREAT OPPORTUNITY TO LEAN INTO THOSE POPULATION CENTERS THAT BRING A LOT OF TOURISM AND ACTIVITY INTO THAT AREA. I THINK IT'S GOOD TO BE A GREAT OPPORTUNITY FOR YOU AND FOR THE CITY.

THEM EXCEPT TO HAVE YOU. >> VERY EXCITED ABOUT ANYTHING

THAT'S GOING ON HERE. >> CAN YOU BUILD A HOTEL TOO?

>> THAT'S NEXT. >> THAT SOUNDS LIKE A LOT TO.

>> IS. >> IF YOU COME IN HERE, HOW MANY EMPLOYEES ARE YOU LOOKING AT? AND JOBS ARE YOU GOING TO CREATE? THAT'S BIG WHEN EVERYBODY WANTS TO KNOW. WHAT KIND OF SUPPORT WOULD YOU

NEED FROM US? >> OUR FIRST ONE WE TRY TO HAVE STAFF AT ALL TIMES, TO BE HONEST WE HAVE TROUBLE STAFFING THAT, THE SECOND ONE IS PROBABLY ABOUD BE SOMEWHERE BETWEEN TEN AND 15 YEAR. THAT DOES REMIND ME, WE DON'T COME FROM THIS BACKGROUND, WE ARE MORE FROM OIL AND GAS SPACE, WE HAVE AN OPERATING PARTNER WHO HAS MANAGED HUNDREDS OF STORES ACROSS THE COUNTRY AND THEY HAVE HELPED US A LOT, THEY DO LABOR, INVENTORY, THAT KIND OF THING. WE ARE ONE STEP BEYOND DEVELOPERS BECAUSE WE ARE GOING TO CONTINUE TO OPERATE AND OWN IT BUT AT THE SAME TIME, I WON'T COME APPEAR AND PRETEND WHAT DIFFERENTIATES US, I'M NOT A GENIUS ON THE STORE STUFF, THANKFULLY SELLING SOMEBODY A BAG OF CHIPS ISN'T ROCKET SCIENCE. IT STILL -- WE ARE LEARNING OBVIOUSLY BUT TO ANSWER YOUR QUESTION, THEY DO THE HIGHER.

SPEAKER WAS THIS A 24-HOUR OPERATION?

>> OUR FIRST ONE IS 24 HOURS, THE SECOND ONE IS 6:00 A.M. TO MIDNIGHT, IT WILL JUST BE DRIVEN -- IF IT IS -- IF WE MAKE MONEY AT 2:00 A.M. WE PROBABLY WOULD ASSUME 24-HOUR

AND THEN ASSESS ONCE IT'S OPEN. >> I GUESS THE ELEPHANT IN THE ROOM IS ONE WHERE YOU COME FROM OIL AND GAS WHICH IS AT BEST VOLATILE AND YOU JUMP INTO A SEAT STORE WHICH IS EVEN MORE VOLATILE. AND NOTHING IS GUARANTEED, RI RIGHT? THE BIG QUESTION IS WHY WOULD YOU DO THAT? FROM A CURIOSITY POINT OF VIEW.

YOU ARE ALREADY IN A VERY VOLATILE ENVIRONMENT WITH OIL

AND GAS. >> WE WERE A LITTLE NERVOUS -- FIRST OFF, WE ARE NOT, BECAUSE WE COME FROM THAT BACKGROUND, THAT'S JUST ABOUT WHAT DIFFERENTIATES US, WE MANAGE RISK BY NOT USING A LOT OF DEBT BECAUSE WE DON'T KNOW THE SPACE, WE DON'T HAVE THE RISK TOLERANCE -- WE DON'T KNOW THE SPACE AS WELL. THAT'S ALSO WHY PART OF THE DELAY HAS BEEN WE HIRED A GROUP CALLED IMS T, THE LEADER OF FEASIBILITY AND DETERMINING WHAT THE ECONOMICS LOOK LIKE FOR SEE STORES. THEY TOOK TO BE HONEST A WHILE AND THAT IS WHY WE STARTED TALKING IN FEBRUARY BUT WE REALLY HAVEN'T MADE PROGRESS UNTIL THIS PAST MONTH BECAUSE WE

[01:00:03]

WERE WAITING ON THAT. IT WAS A BIT OF UNKNOWN.

THE REST OF THEM IS A BIT OF A NO-BRAINER IF YOU ARE IN A TRUCK STOP IN THE MIDDLE OF NOWHERE THERE'S A BUNCH OF TRUCKS YOU'RE PROBABLY GOING TO MAKE MONEY. WE WERE A LITTLE MORE NERVOUS ABOUT BEING IN A CITY AND THERE'S COMPETITION, CASEY'S JUST OPENED. THERE WAS SOME UNCERTAINTY BUT WE GOT THE REPORT BACK FROM THE CONSULTANT AND IT LOOKED GOOD TO. THAT ALSO WILL INFORM SOME OF THE TERMS WE CAN TALK ABOUT LATER, THAT REPORT THAT WE GOT.

>> YOU SAY YOU GOT TWO OTHER STORES YOU ARE ALREADY OPERATING, THAT I HEAR YOU SAY THREE YEARS?

>> THREE YEARS. IT'S BEEN THREE YEARS, THREE AND A HALF YEARS, WE ARE BUILDING OUR THIRD RIGHT NOW IT'S UNDER

CONSTRUCTION. >> NOT TOTALLY

JOHNNY-COME-LATELY. >> YOU'VE GOT TO START GETTING

USED TO BEING IN THIS. >> WE CAN GO INTO EXECUTIVE SESSION AND TALK MORE DETAIL AND THEN COME BACK OUT.

>> SHOULD I SIT DOWN? >> YOU CAN GO WITH US.

>> SHALL I READ OUR LANGUAGE, EXECUTIVE SESSION LANGUAGE?

[ EXECUTIVE SESSION]

>> YES. READ THAT.

>> IT IS NOW -- CALL IT FOR MIKE FOUR: 32 WE WILL RECESS PURSUANT TO THE OPEN MEETINGS ACT, DELIBERATIONS ABOUT REAL PROPERTY. SECTION 551.076 DELIBERATIONS ABOUT SECURITY DEVICES IN SECTION 551087 DELIBERATIONS BUT

>> THE CHAIR: IS NOW 5:22, WE'VE RECONVENED OPEN SESSION, NO ACTIONS WERE TAKING DURING EXECUTIVE SESSION, FOLLOWING THAT DO WE NEED TO HAVE ACTION ITEM 7?

[8. Discussion and Action to Recommend Approval of the Construction Management Task Order with Parkhill for the Terminal Expansion and Improvements Project Phase 1 Construction.]

SPIGOT WE DON'T HAVE TO HAVE ACTION ON ITEMS 7.

>> 'S MOVED ITEM EIGHT. DISCUSSION AND ACTION TO REGIMENT APPROVAL OF CONSTRUCTION AMENDMENT TASK ORDER WITH PARK HILL FOR THE TERMINAL EXPANSION AND IMPROVEMENTS PROJECT PHASE ONE CONSTRUCTION.

>> PARK HILL HAS BEEN OUR DESIGN FIRM, GOT US THROUGH DESIGN PHASES ONE, TWO, AND A THREE AND WE WANT THEM TO DO THE CONSTRUCTION MANAGEMENT OF PHAS. WE HAVE NEGOTIATED A FEE BACK AND FORTH AND WITH THE HELP OF KUTCHINS & GROH, YOU'VE HEARD ME SAY THEM, THEY ARE INSTRUMENTAL TO US RIGHT NOW.

FAA REQUIRES US TO DO AN INDEPENDENT FEE ESTIMATE OF ANY PROFESSIONAL SERVICE THAT WE USE WITH GRANT FUNDS.

WE DID THAT FOR THE DESIGN, WE DID THAT FOR THE CONSTRUCTION MANAGEMENT, THIS CONSTRUCTION MANAGEMENT SCOPE AND FEED.

WHAT THEY DO IS LOOK AT IT AND SAY OKAY, THIS IS WITHIN MARKET RATES, IT'S REASONABLE OR IT'S NOT WE THINK IT'S A LITTLE HIGH.

YOU NEED TO MAKE ADJUSTMENTS. THAT IS WHAT HAS HAPPENED OVER THE PAST MONTH OR SO. UNCOMFORTABLE NOW WHERE WE ARE, I DO NOT HAVE THE LETTER FROM THE IFE LETTER FROM KUTCHINS & GROH YET. BUT WHAT COLLINS SENT BRAD AND ME LAST WEEK I THINK WE ARE DOWN TO WHERE WE NEED TO BE.

THIS INCLUDES COLLINS AND HIS TEAM'S TIME OVERSEE THIS PROJECT, ANSWER ANY QUESTIONS, RESOLVE ANY PROBLEMS. ALSO TO HAVE AN INSPECTOR ON SITE LOOKING AT THE PROGRESS 16 HOURS? IS THAT WHERE WE ARE AT? 16 HOURS A WEEK DEDICATED INSPECTOR.

COLLIN IS GOING TO BE OUT THERE, MEMBERS OF HIS TEAM ARE GOING TO GO OUT THERE TIME TO TIME AS WELL LOOKING OUT THROUGHOUT THE WEEK. I'M COMFORTABLE WITH WHERE WE ARE ON THIS AND IT IS AT A COST OF $602,586.

IT IS GRANT ELIGIBLE, IT IS, IT WILL BE PAID WITH OUR GRANTS WE HAVE SUPPORTING THIS PROGRAM. THAT GETS US THROUGH PHASE ONE.

THIS IS FOR PHASE 1. >> ANY QUESTIONS ABOUT THAT?

[01:05:03]