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BUDGET WORKSHOP, AND BEGIN OUR BUDGET WORKSHOP FOR THE HOUSTON PUBLIC LIBRARY.[ Houston FY2023 Budget Workshop: Houston Airport System ]
HAVE COUNCIL MEMBER TARSHA JACKSON, COUNCIL MEMBER ABBY CAYMAN, COUNCIL MEMBER LETITIA PLUMMER AND STAFF FROM COUNCIL MEMBER TIFFANY THOMAS, AND ED POLLARD'S OFFICE.ALL BUDGET WORKSHOPS WILL BE CONDUCTED IN PERSON ONLY.
PUBLIC SPEAKERS HAVE THE OPTION TO COMMENT IN PERSON OR VIRTUALLY 48 HOURS PRIOR TO THE START OF ALL WORKSHOPS.
PRESENTATION MATERIAL ARE UPLOADED TO SHAREPOINT AND HARD COPIES DELIVERED TO EACH COUNCIL OFFICE.
ALL DEPARTMENTS HAVE BEEN DIRECTED TO PROVIDE WRITTEN RESPONSES WITHIN 48 HOURS OF THE CONCLUSION OF THEIR PRESENTATION TO ANY QUESTIONS POSTED BY COUNCIL MEMBERS ON SHAREPOINT.
THE BUDGET WORKSHOP SCHEDULE IS POSTED ON THE BFA WEBSITE.
QUESTIONS FROM COUNCIL MEMBERS CAN BE UPLOADED AT ANY TIME DURING THE BUDGET WORKSHOP PROCESS.
OF COURSE, THE EARLIER THE BETTER, WHICH ALLOWS THE DEPARTMENTS PLENTY OF TIME TO PROVIDE RESPONSES.
ALL PUBLIC SPEAKERS SHOULD BE SIGNED IN TO SPEAK.
IF YOU HAVEN'T, PLEASE SIGNED IN ON MY LEFT, ON YOUR RIGHT AND MY STAFF MEMBER CAROLINA WILL BE MONITORING THE PUBLIC SPEAKER'S LIST.
PUBLIC SPEAKERS QUESTION SHOULD BE DIRECTED TO CITY COUNCIL.
IF A PUBLIC SPEAKER WOULD LIKE RESPONSES TO ANY QUESTIONS, THEY SHOULD SUBMIT THEIR QUESTION TO THEIR DISTRICT COUNCIL MEMBER OR AT LARGE MEMBERS.
THE 2023 BUDGET AMENDMENT TEMPLATE HAS BEEN UPLOADED, UPLOADED TO SHAREPOINT, AND AS MAYOR TURNER MENTIONED, ALL COUNCIL OFFICES DISCUSSIONS ON THE 2023 PROPOSED BUDGET WILL BE HANDLED THERE.
ONLY OPERATIONAL BUDGET RELATED AMENDMENTS WILL BE CONSIDERED.
POLICY AMENDMENTS SHOULD NOT BE SUBMITTED AND WILL BE RULED OUT OF ORDER.
AMENDMENTS ARE DUE WEDNESDAY, THE 25TH, A WEEK FROM TODAY.
TODAY WE WILL HEAR FROM THE HOUSTON AIRPORT SYSTEM, HOUSTON HEALTH DEPARTMENT, AND SOLID WASTE.
AS A REMINDER, UM, ONLY PEOPLE ATTENDING VIRTUALLY ARE PUBLIC SPEAKERS, AND WE'LL GET TO THEIR QUESTIONS AFTER THE PRESENTATIONS AND AFTER THE QUESTIONS FROM COUNCIL MEMBER, IT'S MY HONOR AND PLEASURE TO WELCOME DIRECTOR MARIO DIAZ AND ESIA HAMPTON.
OF THE HOUSTON AIRPORT SYSTEM TO PROVIDE AN UPDATE.
HOW'S EVERYTHING? THIS IS GONNA BE ALL ABOUT SPACEPORT, RIGHT? SHOOT.
ALSO, BEFORE WE START, YES, YOUR MIC IS ON.
I'D LIKE TO WELCOME, UH, STAFF FROM COUNCIL MEMBER AMY PECK'S OFFICE.
CALL US CISNEROS OFFICE AND COUNCIL MEMBER SALLY ALCORN AND STAFF FROM VICE MAYOR PROAM, MARTHA CASTEX, TATUMS VICE, AND THE LADY WHO JUST CAME IN 'CAUSE I PARKED NEXT TO HER COUNCIL MEMBER CAROLYN, EVAN SHABBAT AND VICE CHAIR EDWARD.
MR. CHAIR, COUNCIL MEMBERS WELCOME AND, AND THANK YOU FOR THE OPPORTUNITY TO SHARE WITH YOU OUR INSIGHTS INTO THE PREPARATION FOR THE 2023 FISCAL YEAR BUDGET FOR THE HOUSTON AIRPORT SYSTEM.
UM, WHAT I'D LIKE TO DO FIRST IS INTRODUCE THE TEAM.
MY TEAM, AS I'VE SAID BEFORE, UM, IT IS THE TEAM THAT GETS THINGS DONE.
UM, IN PARTICULAR, I'D LIKE TO FIRST INTRODUCE JIM ESK, OUR NEW CHIEF OPERATING OFFICER.
I'M REALLY, REALLY DELIGHTED TO HAVE HIM ON BOARD TO HELP.
UM, WE HAVE LILIANA RAMBO, UH, CHIEF OF TERMINAL, UM, AND, UH, UH, ALSO HELPFUL WITH ADMINISTRATIVE MATTERS.
OF COURSE, YOU KNOW, TODD, AND, YOU KNOW, MAURI, THE COUNCIL LIAISONS.
UH, WE HAVE, UH, UH, JAMES REKY JAMES, WHO IS THE ACTING ASSISTANT DIRECTOR FOR FINANCIAL PLANNING.
WE HAVE FRUIT KHAN, WHO IS THE BUDGET MANAGER.
UH, WE HAVE, UH, ANNA GUERRERO, UM, AND BERT KHAN AND TANYA HARRIS, ALL THREE OF WHOM ARE FINANCIAL ANALYST FORCE, AND THEY'VE ALL ASSISTED IN PUTTING THIS PRESENTATION TOGETHER.
UM, AND THEN NEXT TO ME, OF COURSE, IS, UH, KISHA, UH, HAMPTON.
UH, SO WHO WILL HELP ME, UH, WITH THE PRESENTATION.
NOW, KISHA IS ACTUALLY THE CHIEF AUDITOR FOR THE DEPARTMENT.
UM, BUT SINCE WE LOST OUR CHIEF FINANCIAL OFFICER NOT TOO LONG AGO, I'VE ASKED KISHA TO HELP OUT PITCH IN, AND SHE'S GLADLY DONE THAT, OF COURSE, ON THE, UH, UH, KISHA REALLY HANDLES MORE OF THE ACCOUNTING MATTERS FOR THE DEPARTMENT, AND I HANDLE THE FINANCIAL, UM, ANALYSES AND, AND FINANCIAL, UH, ASPECTS OF THE, UM, FINANCE DEPARTMENT.
UH, WHAT WE'D LIKE TO DO TODAY IS I WOULD FIRST LIKE TO TAKE THIS IN TWO PARTS.
IN THE FIRST PART, I'M GONNA GO THROUGH AND TALK ABOUT SOME OF THE ACCOMPLISHMENTS AND SOME OF THE FORECASTS AND PROJECTIONS THAT FORMULATE THE BASIS FOR THE BUDGET ITSELF.
AND THEN, UM, KISHA WILL GO THROUGH THE NUMBERS.
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SO, UH, NEXT SLIDE PLEASE.AND OF COURSE, WE'LL TAKE QUESTIONS.
SO THE FIRST SLIDE, UM, SHOWS THE, UH, BUDGET COST CENTERS FOR THE DEPARTMENT.
UM, AS YOU CAN SEE, WE ARE, UM, PROPOSING A TOTAL BUDGET OF $516.7 MILLION.
THAT'S TOTAL REVENUE AND TOTAL EXPENSES AND FLOW OF TO THE, UM, THE, UH, THE, UH, AIRPORT, UH, INFRASTRUCTURE FUND.
UH, WE HAVE, UH, A TOTAL OF 1,152, UM, EMPLOYEES OR, UH, UH, FULL-TIME EQUIVALENTS.
WHEN IT COMES TO ACCOMPLISHMENTS, I THINK THERE ARE JUST THREE THAT I WANNA HIGHLIGHT.
UM, AND, AND THERE IS ONE, UH, MR. CHAIR ON THE SPACE BOARD.
BE PATIENT AND WE'LL GET TO IT IN IN A SECOND.
UM, FIRST OF ALL, IT IS THAT, AND, AND THIS IS THE MOST IMPORTANT, AND IT IS THAT WE'VE ESTABLISHED HOBBY AS A FIVE STAR, UM, AIRPORT, THE FIRST, UH, FIVE STAR AIRPORT IN ALL OF NORTH AMERICA BY SKYRAS.
IT IS THE FIRST OF THE 60, UH, ODD, UH, AIRPORTS THAT ARE TRACKED BY SKYRAS.
AND IT IS REALLY IMPORTANT BECAUSE IT GETS US TO HALF OF THE WAY TO OUR VISION.
REMEMBER, THE VISION OF THE HOUSTON AIRPORT SYSTEM IS TO CREATE A GLOBAL AIR SERVICE GATEWAY WHERE THE MAGIC OF FLIGHT IS CELEBRATED.
UM, THE AIRPORT SYSTEM HAS TWO COMMERCIAL AIRPORTS.
WE HAVE, UH, THE SPACEPORT, BUT IT'S NOT A COMMERCIAL AIRPORT.
WE HAVE TWO COMMERCIAL INTERNATIONAL AIRPORTS, BOTH ON INTERNATIONAL, AND WE HAVE ACCOMPLISHED THE MISSION OF BECOMING A FIVE STAR AIRPORT.
UM, AT HOBBY, WE ARE NOW FOCUSING WITH ALL OUR ENERGY AND, AND, UH, FOCUS ON, UH, INTERCONTINENTAL TO MAKE THAT, UM, A FIVE STAR AS WELL.
NOW, THIS BRINGS US, OF COURSE, TO, UM, A VERY, VERY SPECIAL PLACE IN WORLD AIRPORTS.
ONLY 16 AIRPORTS 15 AND OURSELVES AT HOBBY ARE RATED FIVE STARS AROUND THE WORLD.
UM, AND IT'S AN ACCOMPLISHMENT.
THAT BRINGS US TO THE POINT WHERE WE CAN NOW SAY THE VISION.
WE ARE HALFWAY THERE ON THE VISION, UM, OF BECOMING A GLOBAL AIR SERVICE GATEWAY.
NEXT, THE NEXT THAT I WOULD LIKE TO FOCUS ON IS THE ACCOMPLISH OF I TRIP.
THAT IS THE INTERNATIONAL TERMINAL REDEVELOPMENT PROGRAM.
UH, WE ARE VERY WELL INTO THE, UM, GROUND.
WE WILL BE COMING OUT OF THE GROUND WITH STEEL PROBABLY IN THE JUNE JULY TIMEFRAME.
UH, WE, UH, THE D WEST PIER, AND, AND YOU'LL SEE IF YOU COME TO NEXT THURSDAY'S ECONOMIC DEVELOPMENT COMMITTEE, WE WILL BE PUTTING ON A PRESENTATION, UH, DEVOTED TOTALLY TO THE INTERNATIONAL TERMINAL REDEVELOPMENT PROGRAM.
AND WE WILL BE FEATURING A SECTION OF THAT ON OF CONCERN THAT I KNOW IS PROBABLY ON YOUR MINDS TODAY, WHICH HAS BEEN ON OUR MINDS, WHICH IS THE ROADWAY CONGESTION.
SO, SO WE'LL ADDRESS THOSE THINGS.
UM, THE, THE, THE D WEST PIER, WHICH IS GONNA BE THE FIRST INSTALLMENT TO BE COMPLETED, WILL BE DELIVERED ON SCHEDULE IN JUNE, JULY OF NEXT YEAR.
THAT IS, WE WILL HAVE A BRAND NEW PEER.
THE REST OF THE RENOVATION OF THE NORTH TERMINAL WILL BE COMPLETED BY DECEMBER OF NEXT YEAR.
AND THEN IN THE JUNE JULY TIMEFRAME FOR 2024, THE ENTIRE PROJECT, UH, WILL HAVE BEEN COMPLETED.
UM, WE ARE DUE TO, UH, AS I SAY, MAKE A PRESENTATION TO THE ECONOMIC DEVELOPMENT COMMITTEE, UM, ON THE STATUS TO COMPLETE STATUS.
AND, AND REALLY IT'S TO TALK ABOUT THE SCALE OF THIS PROJECT.
AND YOU'RE GONNA SEE SOME SLIDES WHEN WE COME IN NEXT THURSDAY OF THE HUGE STRUCTURES THAT WE'VE GOT TO BRING IN AND LIFT INTO PLACE TO MAKE THIS, UM, PROJECT HAPPEN.
THE THIRD, UM, ACCOMPLISHMENT THAT WE'RE VERY, VERY PROUD OF HAS TO DO WITH THE SPACEPORT.
UM, AND IT, AND IT, UM, NEXT SLIDE, PLEASE.
SO, UH, IN THE SPACEPORT, WE HAVE BEEN REALLY, UM, IT CAN'T BE SAID IN ANY OTHER WAY, MORE SUCCESSFUL THAN WE EVER IMAGINED WE WOULD BE WITH THIS SPACEPORT HAVING COMPLETED AND BROUGHT INTO, UM, THE, UH, SPACEPORT SYSTEM, THREE TOP COMPANIES, UM, THAT TOGETHER WILL, IN A MATTER OF 15 TO 18 MONTHS, HAVE ABOUT 650,000 SQUARE FEET OF, UM, GROUND OF, OF, UH, MANUFACTURING SPACE IN THE AEROSPACE SECTOR.
THESE ARE COLLINS AEROSPACE, OF COURSE, IS THE DIVISION OF RAYTHEON FORTUNE 500 COMPANY.
WE HAVE INTUITIVE MACHINES THAT WILL BE BUILDING THE NOVAE LANDER ROCKET PROPULSION SYSTEMS. THEY'RE GOING TO THE MOON LATER THIS MONTH, THE FIRST COMMERCIAL, UM, TRIP BACK TO THE MOON.
AND IT'LL BE FROM A COMPANY THAT ACTUALLY PRODUCED THE, UH, LANDERS
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AND THE PROPULSION SYSTEMS, THE NAVIGATION SYSTEMS RIGHT HERE IN HOUSTON.AND OF COURSE, WE HAVE AXIOM AEROSPACE.
AXIOM, AS YOU MAY KNOW, ON APRIL 20, ON MAY 21ST, EXCUSE ME, APRIL 21ST COMPLETED ITS, UM, FIRST FLIGHT, UM, TO THE, UH, SPACE STATION, DELIVERING A ASTRONAUTS AND COMING BACK.
AND OF COURSE, LAST WEEK, MAY 11TH, WE HAD THE GROUNDBREAKING CEREMONY FOR AXIOM AT THE, UH, HOUSTON SPACEPORT.
UM, SO WE, WE THINK THAT, UH, THE, THE ADDITION OF, OF THESE COMPANIES, THE ADDITION OF THIS 650,000 SQUARE FEET OF MANUFACTURING SPACE WILL RESULT IN ABOUT A THOUSAND TO 1500 JOBS, NEW JOBS, WELL PAYING JOBS WITH THE NEXT, UM, 15 TO 18 MONTHS.
SO WHAT DOES THE DEPARTMENT DO? WELL, I THINK OUR MISSION STATEMENT SUMS THAT UP VERY, VERY, UH, UH, NICELY.
IT IS THAT IT, UH, WE EXIST TO CONNECT THE PEOPLE, THE BUSINESS, CULTURES AND ECONOMIES OF THE WORLD TO HOUSTON.
UH, TODAY WE PROVIDE ABOUT 184 DESTINATIONS FROM, UH, INTERCONTINENTAL 121 ARE DOMESTIC, 63 ARE INTERNATIONAL FROM HOBBY.
WE PROVIDE 84 DESTINATIONS, 76 ARE DOMESTIC, AND EIGHT ARE INTERNATIONAL.
UM, AT INTERCONTINENTAL, UH, DOMESTIC TRAVEL IS EXCEEDING INTERNATIONAL RECOVERY ON 90% VERSUS 77%.
THE REVERSE IS TRUE AT A HOBBY.
AT HOBBY, WE'RE RECOVERING FASTER IN THE INTERNATIONAL 91%.
AND BY THE WAY, THESE ARE THE PERCENTAGES OF 2019 TRAFFIC, 91% VERSUS 82%, UH, FOR DOMESTIC, UH, WE HAVE FOUR AIRLINES THAT ARE EXCEEDING, UM, THEIR TRAFFIC LEVELS IN AT IH, UM, AGAINST 2019.
SO THEY'RE DOING BETTER, ACTUALLY, BETTER THAN THEY WERE IN 2019.
UH, WE HAVE FOUR AIRLINES THAT ARE STILL IN THE RECOVERY PHASE.
WE HAVE ONE AIRLINE THAT'S GONE BANKRUPT, WAS IN JET.
AND WE HAVE TWO AIRLINES, ETHIOPIAN, AND THEY'RE CHINA THAT HAVE NOT RETURNED YET, BUT WE EXPECT ETHIOPIAN AIRLINES TO RETURN PROBABLY IN THE SUMMER OF THIS YEAR, AND HOPEFULLY AIR CHINA WILL BE, UM, NOT TOO FAR BEHIND.
UM, AND THEN DESPITE THE PANDEMIC, UH, WE'RE VERY, VERY HAPPY TO ANNOUNCE THAT AIRLINES LIKE ALLEGION, UH, FRONTIER, UH, SOUTH, UH, SOUTHWEST AMERICAN, CARIBBEAN AIRLINES, DELTA SPIRIT, SUN COUNTRY, UNITED, VIVA, ABUS, AND VLADIS, ALL ADDED FLIGHTS, ALL ADDED SERVICE DURING THE PANDEMIC, UM, THAT WE HAVE JUST TRANSITIONED TO.
SO, UM, OUR STRATEGIC PLAN IS, UH, FAIRLY SIMPLE.
IT'S LAID OUT, AS I SAID, THERE'S THE MISSION AND I'VE, I'VE TALKED TO THE VISION.
UM, WHAT WE ARE FOCUSING ON IS, UM, ACTING RESPONSIBLY WITH RESPECT TO SOCIAL, ENVIRONMENTAL, AND, UM, ECONOMIC CONCERNS.
AS I'VE MENTIONED, WE, WE ARE GENERATING JOBS, FOCUSING ON HOW TO TRAIN THE YOUTH OF HOUSTON, UM, AND FOR CAREERS IN AEROSPACE MANUFACTURING, AND IMPROVING THE FINANCIAL RESILIENCE OF THE AIRPORT SYSTEM.
THAT GOES TO THE SECOND BULLET.
UM, THE INTERNATIONAL TERMINAL REDEVELOPMENT PROGRAM, THE, THE DOMESTIC TERMINAL REDEVELOPMENT PROGRAM THAT WE'RE GONNA LAUNCH AS PART OF THE CAPITAL PROGRAM, UM, IN THE COMING YEAR.
AND, UM, SOUTHWEST AIRLINES SEVEN GATE EXPANSION AND HOBBY ARE ALL PLATFORMS FOR FUTURE SUCCESS.
AND THEN OF COURSE, WE HAVE COLLABORATION WITH THE AIRLINES, THE FEDERAL AGENCIES, AND CONCESSIONAIRE AND CONTRACTORS, LIKE ALL IN ADDITION TO THE WORK THAT WE'RE DOING IN SHIFTING THE CULTURE WITHIN THE ORGANIZATION, UM, THAT ADDRESSES THE FINAL PRIORITY, WHICH IS TO BUILD RELATIONSHIPS AND, UM, UH, UH, CONDITIONS FOR BETTERMENT.
THE, UH, AS, AS YOU CAN SEE, UH, WHAT WE REALLY WANNA DO IS IN THE NEXT SLIDE, PLEASE.
THIS SLIDE SHOWS TRAFFIC IN, IN GRAPH FORM.
UM, AND, AND I, I'LL HAVE A SLIDE THAT COMES RIGHT AFTER THIS, THAT'LL SIMPLIFY IT.
BUT YOU CAN SEE THE VAGARIES OF MONTH BY MONTH, YEAR BY YEAR.
UM, WE START WITH THE, UM, BLUE, WHICH IS OF THE, UH, 2019.
AND THEN FROM THERE, YOU JUST SEND DOWN, I, I WOULD JUST POINT TO TWO, UM, GRAPHS ON THIS.
THAT IS THE, THE ONE FOR 2022, WHICH TERMINATES AT 25.5 MILLION.
THAT'S WHAT WE EXPECT AT THE END OF THE YEAR, JUNE 30TH, WHEN WE, UH, FINALIZE NUMBERS WILL COME OUT AT ABOUT $25.5 MILLION DOLLARS, 25.5 MILLION PASSENGERS.
AND THEN IN, UH, FOR 2023, WE'RE FORECASTING, UM, 29 MILLION, AND THAT'S JUST ABOUT 800,000 SHORT OF THE 2019 ALL TIME HIGH.
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BETTER SHOWS THE POINT THAT I WAS MAKING ABOUT THE, THE TRAJECTORY AND THE PATH THAT WE ARE WE'RE FOLLOWING.AS YOU CAN SEE, UM, WE STARTED OUT IN 29.8 MILLION IN EMPLOYS IN 2019, AND THEN OF COURSE, WE DROPPED OFF AND WE, UH, BOTTOMED OUT IN 2021, FISCAL YEAR 2021.
AND THEN WE'VE BEEN INCREASING TO WHERE AT THE END OF THIS YEAR, WE EXPECT TO BE ABOUT 25.5 AND NEXT YEAR, 29.8, AND THEN WE'LL CONTINUE ON FROM THERE.
AND SO, UM, THAT CONCLUDES MY PART OF THE PRESENTATION.
IF THERE ARE NO QUESTIONS AT THIS POINT, I'LL TURN IT OVER TO KISHA AND SHE WILL CARRY ON WITH THE NUMBERS.
SO I'M GONNA TALK ABOUT REVENUES BY FUND.
UM, IF YOU, AND, AND I'M GOING TO GO AHEAD.
I'M GONNA TALK ABOUT REVENUES BY, BY FUND, AND I'M REALLY GONNA HONE IN ON OUR FY 20 FY 19 ACTUALS VERSUS OUR PROPOSED FY 23.
BECAUSE OUR FFY 29, THIS IS MORE, UH, BECAUSE WE DIPPED DOWN DURING THE PANDEMIC, BUT WE ARE EXPECTED TO EITHER MATCH OR EXCEED, UH, 19 WITH OUR REVENUES AND EXPENDITURES AND OUR EMPLOYMENTS.
SO IN FY 23, WE PROPOSE OUR BUDGET IS ABOUT 516,719,000 AND FY 19, IT WAS ABOUT FIVE 18.
SO WE'RE ABOUT 2 MILLION UNDER, UH, BUDGET FOR, I MEAN, UNDER REVENUES, UH, TO MATCH 2019, WHICH WE'RE BACK ON TRACK FOR FY 22, WE HAD 4 78.
SO OUR BUDGET HAS INCREASED ABOUT 8.1%.
AND IF YOU GO TO THE NEXT SLIDE, SO OUR BUDGET HAS INCREASED BY 8.1% OVER OUR FY 22 ESTIMATE, AND OUR AIRLINE REVENUES, UH, FOR LANDING AND TERMINAL RENTS ARE PROJECTED TO INCREASE BY 11.6 MILLION.
NON-RES PARKING WILL INCREASE BY 12.1 GROUND TRANSPORTATION AND TERMINAL CONCESSIONS BY 9.3 MILLION.
AND CAR RENTALS, ABOUT 4 MILLION REVENUES, UH, FROM FACILITIES AND OTHER MISCELLANEOUS REVENUES ARE TO PROJECTED TO INCREASE ABOUT 3 MILLION.
AND OUR OTHER, OUR OTHER MISCELLANEOUS INCLUDES GROUND RENTS, HANGERS, RENTALS.
UH, FA UH, FACILITY RENTALS AND INTEREST INCOME.
UH, WE WANNA SHOW YOU OUR COVID RELATED GRANTS THAT THE AIRPORT HAS RECEIVED.
SO IN, WE'VE RECEIVED ABOUT 460 MILLION, WHICH IS 458 MILLION THAT WE HAVE RECEIVED, THAT WE ARE ELIGIBLE FOR, SORRY, THAT'S AVAILABLE TO US.
WE'VE, WE'VE RECEIVED, AS OF APRIL 30TH, 2022, WE RECEIVED 295 MILLION OF THAT.
WE'VE, WE'VE USED THE ENTIRE 2 95.
SO WE HAVE ABOUT 169 MILLION STILL AVAILABLE FOR US TO USE, UH, FOR OUR COVID RELATED GRANTS.
AND NOW I'M GONNA GO TO EXPENDITURES.
SO OUR EXP, OUR EXPENDITURES FOR FY 23, WE ARE PROPOSED TO SPEND THE, THE 5 16 7 19.
AND IT'S, WE CAN LOOK AT FY 19.
WE HAD OUR ACTUAL WAS FIVE 19,000,519 MILLION.
SO WE ARE ABOUT 3 MILLION BELOW OUR FY 19 EXPENDITURES.
SO OUR EXPENDITURE HIGHLIGHTS WE'RE ABOUT 4.4%, UH, INCREASE OUR EXPENDITURES, AND THAT IS DUE TO PERSONNEL INCREASE BY 6.3 MILLION SUPPLIES AND CAPITAL, UM, AND SUPPLIES AND NON-CAPITAL EQUIPMENT.
WE'RE GONNA INCREASE THAT BY ABOUT 0.2 MILLION, ABOUT 200,000.
OUR CONTRACTED SERVICES ARE INCREASING BY 4.1%.
AND I JUST WANNA, WE JUST WANNA POINT OUT HERE AT THE BOTTOM, WE PAY ABOUT 1.3 MILLION, 103, SORRY, 103 MILLION OF OUR GENERAL FUND.
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IS, IT'S IT SERVICES TO THE CITY FOR HPD, FIRE, RESCUE, HR, IT, LEGAL WATER AND SEWER, ET CETERA.SO THIS IS THE EXPENDITURES, UH, THE CHANGE IN EVERY LINE ITEM, UH, BY CATEGORY.
AND I'M GONNA TALK MORE ABOUT THAT ON THE NEXT SLIDE.
SO THIS IS OUR FY 23, WHICH IS OUR EXPENDITURES FOR, FOR OUR, FOR 8 80 12, I'M SORRY, WHICH IS OUR CAPITAL IMPROVEMENT.
SO IT'S ABOUT 26 MILLION 1 3 6.
FOR OUR FY 23 AND FY 19, WE'RE LOOKING AT ABOUT 3 MILLION.
AND THAT IS DUE TO OUR INCREASE IN ALL OUR, OUR 4% INCREASE IN ALL OUR FACILITY MAINTENANCE, OUR POLICE, FIRE, RESCUE ACT, AIRCRAFT, RESCUE UTILITIES, ET CETERA.
OUR EXPENDITURE HIGHLIGHTS IN OUR CAPITAL OUTLAY FUND, WHICH IS OUR FUND 80 12.
OUR EXPENDITURES ARE PROJECTED TO INCREASE BY 828.7% OVER OUR FY 22 ESTIMATE.
AND THAT IS MAINLY DRIVEN BY OUR REPLACEMENT OF OUR HAS, OUR FLEET VEHICLES, UH, RF AND HPD VEHICLE VEHICLES.
WE ACTUALLY HAD PURCHASED VEHICLES IN FY 22, AND THEY DID NOT, WE DID NOT RECEIVE THEM, SO THEREFORE, THEY HAD TO BE ROLLED OVER INTO OUR FY 23 BUDGET.
SO THAT IS MAINLY THE REASON FOR SUCH A HIGH INCREASE IN OUR CAPITAL OUTLAY.
AND WE HAD ABOUT 0.7 IN OUR COMPUTER AND HARDWARE, COMPUTER HARDWARE AND SOFTWARE, AND ABOUT 0.5 MILLION INTO OUR, UH, F UH, INTO OUR FURNITURE AND EQUIPMENT.
AND JUST SO YOU, I WANTED TO, I REITERATE HERE, WE'RE BUYING 25 ELECTRIC FY, UM, F1 FIFTIES, UH, THAT THOSE ARE IN THAT FLEET, UH, THAT WILL BE ROLLED OVER FOR THE FY 23 PROPOSED BUDGET.
WE WANTED TO BREAK OUT OUR FY 23 BUDGET PERSONNEL VERSUS NON PERSONNEL.
AND IF YOU LOOK AT NON-PERSONNEL, THERE'S ABOUT 61%.
FIRE RESCUE IS THE BIGGEST PORTION OF OUR NON-REVENUE.
BUT I ALSO WANTED TO, UH, HIGHLIGHT ON OUR CONTRACTED SERVICES.
SO OUR CONTRACTED SERVICES ARE OUR BIG PORTION OF OUR NON-PERSONNEL AS WELL.
AND SO, UH, SOME OF OUR TOP CONTRACTED SERVICES ARE OUR SECURITY CONTRACT, WHICH IS ABOUT 4.8 MILLION.
LANDSCAPING IS ABOUT 1.6 MILLION.
SMART CART IS ABOUT 1.4 MILLION, AND OUR ASSET MANAGEMENT IS ABOUT 6.2 0.6 MILLION.
HERE IS A SLIDE ON OUR BUDGET HISTORY.
IF YOU LOOK AT OUR FY 23 PROPOSED BUDGET VERSUS OUR FY 19, WE ARE PRETTY MUCH ON TARGET WITH OUR BUDGET VERSUS OUR ACTUALS, UH, WITH OUR FY 19 YEAR.
'CAUSE THAT IS GONNA BE OUR YEAR THAT WE, WE ARE COMPARING FY 23 TO, BECAUSE OUR PASSENGER LEVELS ARE BACK AROUND THAT LEVEL.
AND AGAIN, WE WANNA THANK YOU FOR OUR PRE BUDGET PRESENTATION HEARING, AND TO REITERATE THAT HOBBY IS THE FIRST FIVE STAR AIRPORT IN NORTH AMERICA.
ANY QUESTIONS? YES, WE HAVE A NUMBER OF COUNCIL MEMBERS IN QUEUE.
WE'LL FIRST GO TO COUNCIL MEMBER ABBY CAYMAN.
THANK YOU, MAYOR PRO TEM, UH, DIRECTOR.
CONGRATULATIONS, UH, TO YOU IN THE ENTIRE AIRPORT SYSTEM TEAM, OUR PARTNERS AT THE AIRLINES.
UM, I, YOU KNOW, IT'S HARD TO KNOW WHERE TO BEGIN, RIGHT? WITH ALL OF THE SUCCESS AND PROGRESS THAT'S BEEN MADE, WHETHER IT'S AT THE SPACEPORT OR OUR TRADITIONAL AIRPORTS.
UM, I WANTED TO JUST SPOTLIGHT, UH, WE HAVE A LOT OF RESIDENTS THAT ARE CONTINUING TO ENJOY THE NEW CHILD PLAY AREA AT HOBBY.
I'M SEEING WHEN I WAS IN THERE, I'M SEEING IT PACKED ALL THE TIME.
UM, CAN YOU REMIND ME, I KNOW YOU, I BELIEVE YOU TOUCHED ON IT AT THE BEGINNING, BUT THERE'S BEEN A LOT OF HEADACHES, UNDERSTANDABLY SO, AROUND INTERCONTINENTAL WITH ALL OF THE CONSTRUCTION.
SO WHEN, UH, AND YOU'VE BEEN VERY RESPONSIVE TO THOSE NEEDS, BUT
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CAN YOU GO BACK TO WHEN RESIDENTS CAN RESPE, UH, EXPECT SOME RELIEF THERE? SURE, SURE.THANK YOU FOR THE QUESTION, COUNCIL MEMBER.
UM, AND SO AGAIN, UH, NEXT THURSDAY WE'LL HAVE A, A MUCH MORE IN-DEPTH PRESENTATION.
BUT LET ME QUICKLY TICK OFF A COUPLE OF POINTS.
I, I, THE FIRST POINT THAT I WOULD MAKE IS THAT I THINK WE'RE OVER, UM, THE HUMP ON THIS ONE.
UM, YOU KNOW, IF, IF, UH, WE COULD DO IT OVER, ACTUALLY WE'D HAVE TO DO IT THE SAME WAY.
UH, THE, THE WAY THAT WE MIGHT'VE DONE IT HAD WE HAD THE REAL ESTATE WAS WE WOULD'VE BUILT TEMPORARY ROADWAYS AND PUT ALL THE TRAFFIC ON THE TEMPORARY ROADWAYS WHILE WE DID THE CONSTRUCTION.
BUT THAT, THAT REAL ESTATE DOESN'T EXIST.
ONCE YOU GET INTO THOSE ROADWAYS, YOU'VE GOT PARKING GARAGES ON ONE SIDE OF THE STREET, AND YOU'VE GOT TERMINAL BUILDING.
AND, AND WE'VE GOTTA WORK IN, IN THOSE STREETS.
UM, I THINK PEOPLE DON'T APPRECIATE THE SCALE.
AND SO, PLEASE COME NEXT THURSDAY SO THAT YOU CAN UNDERSTAND THE SCALE AND YOU CAN SEE THE HUGE STRUCTURES THAT WE'RE MOVING, UM, ON THESE CATERPILLARS AND ACTUALLY LIFTING AT NIGHT AND PUTTING INTO PLACE.
IT'S, IT'S A VERY, VERY, IT'S NOT, WE'RE JUST NOT REPLACING THE ROOF OR REPLACING WINDOWS IN THE BUILDING.
WE ARE COMPLETELY REDOING THE ENTIRE INTERNATIONAL BUILDING.
BUT TO THE POINT PRECISELY, UM, CAN ICONTINUE, GO AHEAD.
SO, SO, BUT TO THE POINT, UM, UM, PRECISELY, UH, AS OF JUNE 6TH, UH, WE WILL HAVE FINISHED THE ELEVATORS IN THE INTERNATIONAL TERMINAL.
WHY IS THIS IMPORTANT? BECAUSE WE WERE USING, WE COULD NOT BRING HANDICAP, UM, PASSENGERS DOWN TO THE LOWER LEVEL TO TAKE THEM THROUGH THE TUNNELS TO THE OTHER AIR, TO THE OTHER TERMINAL BUILDINGS.
AND SO WHAT WE'RE DOING IS ONCE THOSE ELEVATORS ARE IN PLACE, UM, WE WILL TAKE THE BUSES THAT WERE OUTSIDE THAT WERE TRANSPORTING PASSENGERS, AND WE'LL USE, THOSE BUSES WILL BE REMOVED, AND WE'LL HAVE ANOTHER LANE OPEN THAT'LL INCREASE THE CAPACITY ON THE ROADWAYS.
UNITED AIRLINES, AS YOU KNOW, THEY'RE BUILDING THAT AT THE SAME TIME.
AND WE PROBABLY COULD HAVE DONE A LITTLE BIT BETTER OF COORDINATING WITH THEM ON THAT.
BUT THEY'RE BUILDING THIS MASSIVE EARLY, EARLY BAG SHORT SYSTEM BECAUSE THEY REALLY WANNA GROW IN HOUSTON.
IT'S A $400 MILLION INVESTMENT.
IT'S, IT'S WONDERFUL, UM, ONCE THEY HAVE IT IN PLACE.
UM, BUT THEY NEEDED TO TAKE DOWN THE ROADWAYS AND THEY LIMIT IT TO ONE LANE.
NOW THEY TELL US THAT AS OF JULY, MIDDLE OF JULY, THAT LANE WILL BE IMPROVED AND THE DEPARTURES LANE WILL ALL MERGE.
SO THAT TRAFFIC SHOULD FLOW MUCH MORE SMOOTHLY THROUGH THAT AREA.
AND THEN IN OCTOBER OF THIS YEAR, THAT'LL BE DONE.
THAT PROJECT WILL BE DONE, AND ROADWAYS WILL BE CLEARED.
UM, JUNE OF NEXT YEAR, JUNE 6TH OF NEXT YEAR, UH, WE WILL HAVE THE FIRST INSTALLMENT FOR THE, AS I SAID, THE D WEST PIER.
AND ONCE THAT D WEST PIER IS OPENED, WE WILL HAVE A MUCH BETTER, UM, TIME AND, AND MOVEMENT OF TRAFFIC OFF OF THE ROADWAYS ON THE NORTH SIDE OF THE TERMINAL INTO THAT AREA.
AND THEN COME JUNE, JULY OF 2024, THE PROJECT IS FINISHED.
NOW, THAT'S NOT TO SAY IT'S OVER, BECAUSE IMMEDIATELY WE ARE NOW FOCUSING ON THE INFRASTRUCTURE INSIDE THE ROADWAYS.
WE'RE REPLACING ALL OF THE WATER LINES, THE WATER MAINS, WE'VE GOTTA PUT IN HIGH PRESSURE WATER.
UM, BECAUSE ONCE WE START, WE AND COUNCILMAN ROBINSON, YOU KNOW THAT ONCE WE TOUCH A BUILDING, YOU NOW MEET, MUST MEET THE NEW CODES.
AND ONE OF THOSE CODES MEANS YOU GOTTA BE SPRINKLERS.
WE DON'T HAVE THE WATER PRESSURE.
AND SO THE NEW, UH, EARLY, UH, UH, THE ENABLING, UH, PROJECT THAT WE HAVE FOR THE WATER WILL PROVIDE TANKS, PROVIDE NEW WELLS AND PUMPS THAT WILL, AND NEW LINES THAT WILL BE ABLE TO KEEP THE WATER PRESSURE AT HIGH ENOUGH LEVEL TO ACTUALLY, UM, SPRINKLE ALL OF THE BUILDINGS WITHOUT HAVING TO HAVE PUMPS AND TANKS IN EACH ONE OF THOSE BUILDINGS.
AND THEN NEXT YEAR, WE'RE GONNA BE STARTING ON THE SAME PROJECT JUST AT THE OTHER END OF THE TERMINAL, THE TERMINAL, A REDEVELOPMENT PROGRAM.
IT, IT'S, IT'S ANOTHER BILLION PLUS INVESTMENT WE NEED TO MAKE BECAUSE WE NEED TO CONTINUE INVESTING FOR THE AIRLINES.
WE HAVE A PLAN, AND WE WILL, UH, BE BRINGING THAT FORWARD TO ECONOMIC DEVELOPMENT COMMITTEE AS WELL.
SO I DO THINK THAT WE ARE NOW REALLY STARTING TO SEE A DELIGHT AT THE END OF THE TUNNEL ON THIS.
AND WE HOPE THAT AS THE SUMMER PROGRESSES, UM, THINGS WILL IMPROVE, UM, CONTINUALLY.
IF I COULD BE PLACED BACK IN QUEUE.
ON PAGE 14, THE $103 MILLION BREAKDOWN THAT YOU GIVE TO THE, UM, THAT GOES TO, TO THE CITY, TO THE GENERAL FUND.
IF I COULD JUST, YOU DON'T HAVE TO GIVE IT TO ME NOW, BUT IF I COULD GET A BREAKDOWN ON THAT.
AND, AND TO COUNCIL MEMBER CAYMAN'S POINT, UH, WHAT, WHAT CAN WE DO TO, IN THIS BUDGET CYCLE TO HELP YOU WITH THE TRAFFIC SITUATION? IS IT HPD? I MEAN, I KNOW IT'S REALLY HARD TO
[00:30:01]
EXPLAIN WHAT YOU JUST EXPLAINED TO CONSTITUENTS WHO CALLI MEAN, IT, THAT'S A LOT OF MOVING PARTS.
IS THERE ANYTHING, YOU KNOW, ELSE BESIDES JUST THE THINGS THAT HAVE TO HAPPEN TO OPEN UP LANES THAT CAN BE DONE TO, TO, UH, STEER TRAFFIC.
IT, YOU KNOW, WE TELL PEOPLE, TAKE THE TRAIN TO A, WE'LL PICK YOU UP AT A, OR GET THE UBER FROM A, OR WHATEVER.
I MEAN, WHAT KIND OF PRACTICAL ADVICE OR WHAT CAN WE DO DURING THE BUDGET CYCLE TO HELP YOU? I, I THINK THAT THE, THE ONE POINT THAT WE TRY TO MAKE OVER AND OVER, AND I KNOW WE, WE, WE, WE DO IT LIGHTLY BECAUSE WE DON'T WANT PEOPLE TO THINK THAT, YOU KNOW, THEY'VE GOTTA SPEND THEIR LIFE AT THE AIRPORT, BUT COME EARLY, COME EARLY SO THAT YOU HAVE, YOU HAVE ENOUGH TIME TO GET TO THE TRAFFIC, UM, SO THAT YOU ARE COMFORTABLE THAT YOU WILL MAKE YOUR FLIGHT.
AND THEN HERE'S THE SECOND THING WE'RE DOING.
ONE OF THE THINGS THAT WE'VE NOTICED IS THAT, UM, WHAT WE CALL IRREGULAR OPERATIONS.
SO FOR EXAMPLE, LET'S SAY THAT WE HAVE, ONCE THE FLIGHTS LAUNCH FROM ASIA, THEY LAUNCH FROM EUROPE, THEY CAN'T STOP.
THEY'VE GOTTA CONTINUE ONCE THEY'RE OVER THE NORTH ATLANTIC OR THE PACIFIC.
YOU CAN'T JUST CAN'T TELL THOSE AIRPLANES TO RETURN.
BUT LET'S SAY, UM, THE WEATHER CHANGES AND WE'RE NOW IN A THUNDERSTORM CONDITION.
THOSE AIRCRAFT HAVE TO BE HELD.
THEY'VE GOT, THEY START CIRCLING AT ALTITUDES OF ABOUT A THOUSAND FEET.
THEY, THEY'RE STACKED ONE ON TOP OF ANOTHER.
AND OF COURSE, I WAS GONNA GO, GO PICK UP GRANDMA OR MY WIFE OR MY KIDS, AND THEY WERE SUPPOSED TO ARRIVE AT FIVE.
WELL, GUESS WHAT? THE AIRCRAFT IS STILL IN THE WHOLE POSITION.
SO WE'RE GONNA DO, AS ONE OF THE MEASURES THAT WE WERE TAKING, IS WHEN WE SEE THIS CONDITION, WE'RE GONNA OPEN UP THE PARKING GARAGES.
WE NEED TO GET THEM OFF THE ROADWAYS.
WE NEED TO FIND CONTAINMENT AREAS WHERE WE CAN GET THEM OFF THE ROADWAYS.
AND THAT WAY THE TRAFFIC WILL CIRCULATE MUCH BETTER.
AND, AND JUST CONGRATS ON THE SPACEPORT STUFF TOO AND ON HOBBY.
I MEAN, THAT'S THE MOST, AND TO ME, THE MOST EXCITING THING GOING ON IN HOUSTON, TEXAS RIGHT NOW.
COUNCIL MEMBER CAYMAN, THANK YOU CHAIR.
UM, DIRECTOR, JUST AS WE TALKED ABOUT CONSTRUCTION, UH, I JUST WANNA HIGHLIGHT AND WE CAN DISCUSS OFFLINE THE IMPORTANCE OF, AS WE'RE LOOKING AT NEW PLANS AND NEW, UM, FACILITIES, WE ARE NOW THE HUB OF INNOVATION AS WE'VE ALWAYS BEEN.
SO I WANNA MAKE SURE THAT AS WE'RE BUILDING, OUR BUILDINGS THEMSELVES ARE PUSHING THE ENVELOPE IN TERMS OF SUSTAINABILITY, RESILIENCY, UM, BEST PRACTICES IN TERMS OF ENVIRONMENTAL, UH, SUSTAINABILITY.
UH, REALLY QUICKLY, I WANTED TO RECOGNIZE YOU ALL, UM, AT THE AIRPORTS, WE GOT AN INCREASE IN THE MINIMUM WAGE TO 15, WHICH I THINK IS A REALLY REMARKABLE AND IMPORTANT THING TO RECOGNIZE.
UM, MY HOPE IS THAT YOU ALL WILL CONTINUE TO LOOK AGAIN.
WE'VE JUST PASSED IT, THE CITY PAID PARENTAL LEAVE, UH, GOING TO THE NEXT STEP, UH, IN TERMS OF OUR JANITORIAL CONTRACTS, OUR SUBCONTRACTORS, THINGS LIKE THAT TO PUSH, TO MAKE SURE THAT EVERYONE IS INCLUDED IN THOSE THINGS.
AND IF YOU ALL COULD PROVIDE JUST OFFLINE AND WE CAN SUBMIT THE QUESTION AND UPDATE ON, UM, THE PROGRESS IN TERMS OF, UH, JANITORIAL PAY AND THINGS LIKE THAT, I WOULD APPRECIATE THAT.
UM, FINALLY, UH, YOU KNOW, COUNCIL MEMBER ALCORN ASKED IT, AND I'LL ASK IT A DIFFERENT WAY.
UH, GIVEN THE CONSTRAINTS THAT THE CITY CONTINUES TO FACE, I KNOW THE AIRPORTS ARE, UM, SUCCEEDING.
ARE THERE ANY OTHER NEEDS THAT WE SHOULD BE AWARE OF THAT ARE COMING UP ON THE HORIZON THAT YOU WANNA FLAG FOR US? I, I, I CAN'T THINK OF ANY.
UH, YOU'VE BEEN VERY, VERY SUPPORTIVE.
WE WE'RE VERY, VERY GRATEFUL AND THANK YOU FOR, FOR EVERYTHING YOU'RE DOING TO SUPPORT US ON THIS.
SO DIRECTOR, I'LL NOBODY ELSE IN QUEUE.
SO I'M LOOKING AT YOUR REVENUE PAGE $517 MILLION MM-HMM
DO WE HAVE ANY ADDITIONAL FUNDS THAT COME IN FROM FAA AND ALL THAT KIND OF STUFF? SO, UH, YEAH.
SO YOUR, YOUR BUDGET IS ALWAYS THE MOST DIFFICULT ONE TO UNDERSTAND BECAUSE YOU HAVE SOURCES OF REVENUE AND EXPENSES ALL OVER THE PLACE THAT ARE NOT IN THE GENERAL FUNDS.
SO WE DON'T HAVE PURVIEW TO IT.
IF YOU LOOK AT THE CER, IT HAS FOUR LINE ITEMS EVERY MONTHLY, AND YOU CAN'T GET MUCH WITH FOUR LINE ITEMS. SO I'M TRYING TO DIG DOWN INTO EVERYTHING YOU HAVE COMING IN, EVERYTHING YOU HAVE GOING OUT, INCLUDING THE, WHAT IS IT, WHAT'S OUR INTERNATIONAL STUFF? CAL? HASC.
YEAH, HSCC DOES NOT CONTROL REVENUE.
WELL, I, I KNOW, BUT IT, IT STILL HAS A REVENUE STREAM.
BUT, BUT, BUT THAT'S A SEPARATE, I GET IT, IT'S A SEPARATE ORGANIZATION.
BUT IT, WHEN IT HAS HOUSTON AIRPORT SYSTEM ON IT, THEN I FEEL SOMEWHAT I SHOULD BE KNOWLEDGEABLE, BUT NO ONE KNOWS ANYTHING ABOUT 'EM.
MAYBE THAT'S THE WAY IT'S SUPPOSED TO BE.
BUT GETTING BACK TO MY ORIGINAL QUESTION ON THE REVENUE SIDE, FIVE 17, IS THAT WHERE, WHERE'S,
[00:35:01]
IS THERE FAA MONEY? WHAT DOES THAT AMOUNT TO? SO YOU, YOU MAKE A GOOD POINT.SO LET'S LOOK WHAT, WHAT THIS BUDGET ADDRESSES GENERAL FUND IS WHAT WE CALL OPERATING REVENUE, RIGHT? OPERATING REVENUE.
LET'S TALK ABOUT NON-OPERATING REVENUE FROM AN ACCOUNTING POINT OF VIEW.
SO THERE ARE A COUPLE OF MORE LINE ITEMS ON REVENUE THAT WE WOULD, WE WOULD ADDRESS OR WE WOULD BRING FORWARD FOR YOUR ATTENTION.
FOR EXAMPLE, THE BIGGEST OF THOSE, ASIDE FROM GRANTS, WE'LL GET TO GRANTS IN A SECOND, WE'LL, WE'LL FOCUS ON IN A SECOND.
BUT THE BIGGEST NON, UH, OPERATING REVENUE THAT WE HAVE, OF COURSE, IS PFCS.
SO WE COLLECT FOUR 50, UM, AND WE JUST MULTIPLY IT FOUR 50 TIMES 30 MILLION IN EMPLOYMENTS.
YOU'RE AT 120 SOME ODD MILLION DOLLARS, 120 PLUS MAYBE $140 MILLION OF PFC REVENUE.
NOW IT'S RESTRICTED WITH RESPECT TO WHAT WE CAN DO FOR IT.
BUT, BUT WE, WE CAN USE IT FOR FOUR PURPOSES.
NUMBER ONE IS TO EXPAND THE NATIONAL AIRSPACE SYSTEM.
THAT IS, IF WE CAN USE IT FOR RUNWAYS, TAX WASTE AND THINGS LIKE THAT, WE CAN USE IT FOR TERMINAL BUILDINGS.
UM, WE COULD USE IT TO SECURITY TO ENHANCE THE SECURITY OF THE, OF THE AIRPORTS.
WE COULD USE IT FOR NOISE MITIGATION AROUND THE COMMUNITIES.
AND WE HAVE SPENT SOME OF THAT MONEY, AND WE USE IT FOR COMPETITION TO BRING IN NEW AIRLINES.
SO THAT'S WHAT THE, THE ROUGHLY 130, 140 MILLION PFCS CAN BE USED FOR.
UM, PRINCIPALLY WE USE PFCS TO WRITE DOWN THE DEBT SERVICE THAT WE HAVE TO PAY EVERY YEAR.
UM, THE SECOND SOURCE, OF COURSE, IS IN THIS CASE FOR THE PASS, IS THE GRANTS.
THE CARES, UH, UM, CHRISTA AND ARPA GRANTS $450 MILLION.
SO, UM, AND AS, UH, ISHA SAID, WE'VE RECEIVED ABOUT 300 MILLION OF IT.
THERE'S STILL ABOUT 160 MILLION OR SO TO BE RECEIVED.
WE DID USE ABOUT 92 MILLION OF THAT DEBT, AS YOU SAW ON THE LINE OF 120 SOME ODD MILLION TO, UM, ASSIST THE AIRLINES BECAUSE TO THE EXTENT THAT WE USED GRANTS, THEY DIDN'T HAVE TO PAY THE DEBT SERVICE ON THAT GRANT.
UM, BUT AGAIN, THE LINE, THE LINE SHARE, AS YOU SAY ON THAT PAGE IS REALLY, AGAIN, TO OFFSET DEBT SERVICE.
AND FOR NEXT YEAR WE'LL BE USING ANOTHER 50 MILLION AND THEN ANOTHER 50 MILLION.
AND THAT'LL, UM, UH, ESSENTIALLY USE UP THE, THE REMAINDER OF THE GRANTS THAT WE HAVE.
SECOND, THIRD ITEM IS GRANTS, FA GRANTS.
SO WE RECEIVE, UM, AND, AND WE NEED TO DO A BETTER JOB BECAUSE WE THINK THAT THERE'S MORE FA GRANTS OUT THERE TO BE, TO BE, UM, OBTAINED, BUT ROUGHLY ABOUT 50 TO $60 MILLION A YEAR THAT WE, UM, WANNA BRING IN ON AN ANNUAL BASIS, EITHER IN TERMS AN ENTITLEMENT, BECAUSE WE ARE ENTITLED TO GRANTS ON THE BASIS OF PASSENGER TRAFFIC AND CARGO THAT WE MOVED THROUGHOUT TWO AIRPORTS, OUR THREE AIRPORTS.
AND THEN OF COURSE, UM, THE LAST ONE IS INTEREST ON RESERVES, RIGHT? WE HAVE ABOUT A BILLION DOLLARS IN THE BANK.
AND SO, YOU KNOW, UM, INFLATION IS WHEN INTEREST RATES RISE, OF COURSE THAT BECOMES A, A FAIRLY GOOD SOURCE OF ADDITIONAL INCREMENTAL IN INCOME.
SO THOSE FOUR SOURCES ARE NOT IN THESE NUMBERS.
SO, AND BEFORE WE GO, I KNOW IT, COUNCIL MEMBER DAVID ROBINSON'S IN QS HERE'S, HERE'S MY PROBLEM.
I, I PRIDE MYSELF ON TRYING TO KNOW EVERYTHING ABOUT THE FINANCIAL POSITION THE CITY IS IN, WHETHER IT'S PUBLIC WORKS, WHETHER IT'S ENTERPRISE, WHETHER IT'S GENERAL, WHETHER IT'S AIRPORT AND NOTHING.
WE HAVE A GUY WHO SHOWS UP HERE EVERY OTHER WEEK.
HE HAS A NAME VERY SIMILAR TO YOURS, AND HE STICKS A MICROPHONE IN FRONT OF ALL OF OUR EYES, EARS, AND MOUTHS WITH QUESTIONS THAT QUITE FRANKLY, WE CAN'T ANSWER.
AND WHEN WE CAN'T ANSWER AND THEY SHOW IT, THEY LOVE SHOWING IT ON THE NEWS TO MAKE US LOOK LIKE A BUNCH OF IDIOTS, QUITE FRANKLY, THAT'S, THAT'S IT.
I KNOW THE FEELING AND WHEN I KNOW YEAH, YEAH.
IT'S A LOT DIFFERENT THAN, YOU KNOW, WALTER CRONKITE DAYS.
BUT THERE'S A MISSION, AND I FEEL SO INEPT MANY TIMES WHEN I SEE HIM OUT THERE, AND I RUN AWAY FROM HIM BECAUSE I KNOW WHAT QUESTIONS HE'S GONNA ASK, AND IT'S GONNA BE RELATED TO YOUR ENTERPRISE.
AND I FEEL INADEQUATE ABOUT ANSWERING IT.
I DON'T KNOW HOW EVERYBODY ELSE AROUND HERE FEELS, BUT THAT'S JUST A ME ISSUE BECAUSE THERE ARE SO MANY MOVING PARTS.
AND YOU AND I HAVE HAD VARIOUS CONVERSATIONS.
I'VE BEEN HERE LONGER THAN ANYONE, AND I TRUST YOU IMPLICITLY, AND YOU DO A GREAT JOB.
AND THE HOUSTON AIRPORTS SYSTEM IS A WELL RUN ORGANIZED MACHINE.
SOME OF THE THINGS WE DO DO THERE, ESPECIALLY WHAT'S GONNA HAPPEN DOWN SOUTH IS, IS MONUMENTAL.
BUT, YOU KNOW, FCC, MONEY, GENERAL FUNDS, REVENUE, ALL THESE DIFFERENT THINGS.
AND THEN A GUY SHOWS UP WITH A MICROPHONE AND I JUST, YOU KNOW, JUST FEEL UNPREPARED MANY TIMES.
[00:40:01]
THAT'S WHY SOME OF MY QUESTIONS DIG A LITTLE BIT DEEPER.H-A-S-D-C, I'D LOVE TO KNOW WHAT MORE IS THERE ABOUT THE HOUSTON AIRPORT SYSTEM DEVELOPMENT CORPORATION.
WE SHOULD BE PROUD THAT WE HAVE AIRPORTS THAT WE RUN, OPERATE IN COSTA RICA AND OTHER PARTS OF THE WORLD.
NOBODY ELSE IS DOING INNOVATIVE THINGS LIKE THIS.
SO, YOU KNOW, I'D LIKE TO KNOW MORE ABOUT IT SO I CAN EDUCATE THE PUBLIC WHO VOTES FOR ME OR DOESN'T VOTE FOR ME, THAT THEY GO LOOK AT THAT GUY.
BUT THERE ARE MANY TIMES I DON'T FEEL THAT WAY.
DAVID ROBINSON, I THOUGHT THERE WAS GONNA BE A QUESTION AT THE END OF THE, ALL THAT FOR THE DAY.
IT SOUNDED LIKE HE MIGHT WANNA RESPOND, REFER TO MY FAVORITE ARCHITECT.
DID YOU HAVE ANYTHING YOU WANTED TO RESPOND? THE CHAIR, THE ONLY RESPONSE THAT I WOULD GIVE IS THAT WE, WE FOLLOW THE PROTOCOL, WE FOLLOW THE RULES IN, IN PREPARING THE BUDGET AND PROVIDING INFORMATION.
IF YOU WOULD LIKE A DIFFERENT FORMAT, IF YOU WOULD LIKE, UM, YOU KNOW, TO EXPAND THE SCOPE OF THE INFORMATION, WE'D BE HAPPY TO PROVIDE IT.
WE'RE, WE'RE NOT LOOKING TO, IN ANY WAY SHELTER OR RESTRICT INFORMATION.
WE'RE JUST FOLLOWING THE, THE PROGRAM HERE.
AND I THINK CHAIR, THAT'S PART OF THE REASON I WANTED TO HEAR THAT PRELIMINARY ANSWER.
'CAUSE I WAS, FRANKLY, MY LINE OF QUESTIONING WAS ALONG SOME OF THE LINES YOU'VE PURSUED AND, AND I'VE BEEN FORTUNATE ENOUGH TO TRAVEL WITH, UH, DIRECTOR DIAZ, UH, TO SOME POINTS WITH MAYORAL DELEGATIONS IN SOUTH AMERICA.
WE'VE PASSED THROUGH, I'VE PASSED THROUGH, NOT WITH YOU, BUT ECUADOR, COSTA RICA, YOU'VE MENTIONED SOME OF THE INVESTMENTS THAT WE HAVE IN THE PORTFOLIO OF AIRPORTS THAT WE'VE ASSISTED WITH GLOBALLY.
AND IT IS REALLY SOMETHING FOR US TO BE VERY PROUD ABOUT.
AND, UM, DIRECTOR DIAZ, I THINK THAT IS SOMETHING THAT I SHARE THE CHAIR'S, UH, INTEREST IN KNOWING MORE AND UNDERSTANDING ABOUT, BUT I UNDERSTANDING THAT THAT'S OUTSIDE OF THE, THE BUDGET THAT YOU HAVE TO OPERATE YOUR, YOUR DEPARTMENT.
UM, THAT'S KIND OF WHERE I WANTED TO SEE IF I COULD TAKE A MOMENT AND GET YOUR FEEDBACK ON THE EXTRA, UH, BUDGETARY ISSUES THAT I'VE HEARD YOU TALK ABOUT ALREADY TODAY.
THERE ARE, THERE ARE CAPITAL IMPROVEMENTS THAT ARE GOING ON AT ALL THREE AIRPORT SPACES IN THE CITY OF HOUSTON RIGHT NOW.
THAT'S NOT WHAT YOU USE TO RUN YOUR DEPARTMENT ON AN ANNUAL BASIS.
AND IT'S, IT'S REALLY NOT WHAT'S IN OUR BUDGET.
AND I'M, I'M THINKING ABOUT HOW WE, WITH YOUR HELP, COULD GET TO A BETTER UNDERSTANDING HOW SOME OF THOSE CAPITAL IMPROVEMENTS GO ON CONCURRENTLY WHILE YOU'RE RUNNING AN AIRPORT SYSTEM.
AND IF YOU FOLLOW ME, THIS IS WHERE THE THINGS THAT THE CHAIR AND I HAVE BEEN ON THE NEWS ALONG WITH YOU RECENTLY ARE, ARE PROBLEMS. YOU KNOW, WHETHER IT'S CONGESTION AT THE AIRPORT THAT YOU'VE ADDRESSED WITH QUESTIONS FROM COUNSEL TODAY.
UH, I THINK I WAS RECENTLY INTERROGATED FOR WHY THERE WEREN'T ENOUGH INTERROGATED BATHROOMS OPEN.
DID I SAY INTERROGATED? I THINK I DID
AND SO THE FACT THAT YOU DIDN'T HAVE ENOUGH BATHROOMS OPEN BECAME SOMETHING THAT APPARENTLY I SHOULD HAVE KNOWN ABOUT.
UM, AND I DO CARE ABOUT THE ARCHITECTURE THAT YOU'RE INVESTING IN.
AND YOU KNOW, AS WELL AS I DO THAT, I'VE HAD SOME SERIOUS QUESTIONS FOR YOUR DESIGN TEAM.
BUT THAT IS, AGAIN, EXTRACURRICULAR FOR YOU.
AND AS THE DIRECTOR WHO I FEEL IS THE MOST SCRUTINIZED, THE MOST AUDITED, AND PERHAPS THE MOST, UH, OR THE LEAST UNDERSTOOD, I WONDER IF YOU COULD SHED SOME LIGHT ON THE SEPARATION OF THOSE BASIC COMPONENTS OF WHAT YOU DO EVERY DAY.
SO, UM, I'M THE, I'M THE EXECUTIVE.
I'M THE CHIEF EXECUTIVE FOR THIS ORGANIZATION CALLED THE HOUSTON AIRPORT SYSTEM.
AND RIGHT NOW, UM, I AM, AS I SAID, I'M VERY HAPPY TO HAVE JIM ESK, WHO IS NOW THE CHIEF OPERATING OFFICER.
AND, AND, UH, JIM MADE A VERY GOOD POINT.
WE WERE, WE WERE, WE HAVE OUR, WE HAD OUR ENTERPRISE MEETING, UM, QUARTERLY ENTERPRISE MEETING WITH, WITH THE ENTIRE ORGANIZATION.
HE MADE A REALLY INTERESTING POINT THAT THE CEO FOCUSES ON THE ORGANIZATION AND THE CEO, UM, OPERATES WITHIN THE ORGANIZATION.
AND, AND SO JIM'S RESPONSIBLY ENROLLED WILL BE ON THE OPERATIONAL SIDE BECAUSE THE CAPITAL SIDE OF THIS, UM, ORGANIZATION IS AS LARGE OR NOT LARGER THAN THE OPERATIONAL SIDE.
WHEN, WHEN YOU REALLY START TO THINK ABOUT, AND AGAIN, UM, YOU'LL, YOU'LL SEE SOME VIDEOS LAST NIGHT WE LIFTED IN PLACE A SECTION OF TRUSS THAT WAS 120 FEET IN LENGTH THAT WAS BROUGHT IN ON ONE OF THOSE, UH, BOGIES THAT WAS ERECTED A ACTUALLY PUT IN PLACE RIGHT OUTSIDE THE AIRPORT BECAUSE YOU COULDN'T BE TRANSPORTED.
AND WE BROUGHT IT IN ON AT 11 O'CLOCK AT NIGHT.
THEY STARTED AND THEY FINISHED AT THREE O'CLOCK IN THE MORNING LIFTING THIS THING BY HUGE CRANES AND PUTTING IT IN PLACE.
THIS IS NOT A SMALL OPERATION.
[00:45:01]
IT TAKES A LOT OF ATTENTION TO DETAILS.COUNCILMAN, AS YOU KNOW, UM, WHEN, WHEN IT COMES TO DESIGN, YOU TALK ABOUT DESIGN MANAGEMENT.
WELL, I'VE BEEN THE DESIGN MANAGEMENT WITH YOUR ASSISTANTS, AND WE'VE TAKEN A LOOK AND I HAVE REJECTED MANY, MANY DESIGNS, MANY, MANY PROPOSALS.
I'VE SAID, NO, THAT'S NOT WHAT WE WANT.
I HAVE PUSHED THE DESIGNERS, I'VE PUT THEM IN COMPETITION WITH ONE ANOTHER, AND THEY'VE COME UP WITH A PHENOMENAL DESIGN FOR THAT TERMINAL BUILD.
I THINK WHEN THIS THING NEXT YEAR, UM, HOPEFULLY IT WILL ALL COME OUT FOR THE RIBBON CUTTING FOR THE D WEST PIER.
YOU ARE GOING TO SEE A PIER THAT IS THE FIRST INSTALLMENT OF A TERMINAL THAT YOU'VE NEVER SEEN THE LIKES OF IN THIS CITY.
AND ABSOLUTELY FUNCTIONAL BECAUSE WE REALLY WANT TO PUMP A LOT OF TRAFFIC THROUGH THERE.
NOW, HAVING SAID THAT, UM, I ALSO HAVE TO FOCUS ON THE FINANCE, AND I'VE GOTTA FOCUS ON THE BUSINESS AND, AND CHIEF FLEET, THE NEGOTIATIONS WITH THE AIRLINES.
'CAUSE THAT'S THE DIFFICULT PART.
I I, YOU KNOW, I, OVER THE COURSE OF MY CAREER, I'VE LEARNED THAT YOU DON'T GO INTO THE OFFICE OF A CEO AND SAY, HEY, WE WANT YOU TO COME TO HOUSTON OR TO ATLANTA OR TO NEW YORK.
WELL, NEW YORK'S DIFFERENT, UH,
AND THEY SAY, AND, AND, AND YOU WANT TO SHOW THEM PHOTOS.
'CAUSE WHAT THEY SAY TO ME IS, MARIO, THOSE PHOTOS ARE REALLY, REALLY NICE.
WHAT'S IT COST? WHAT'S THE INCREASE GONNA BE? HOW MUCH ASSURANCE CAN YOU GIVE ME ABOUT THE CONTROL OF COST IN YOUR AIRPORT? WHAT'S THE MARKET? HOW'S YOUR ECONOMY GOING? AND YOU'VE GOTTA BE ABLE TO ANSWER ALL THOSE QUESTIONS.
SO AS THE CEO, I NEED TO TAKE ON THAT ROLE.
IT'S, IT'S, IT'S SOMETHING THAT, YOU KNOW, IT'S NOT A, IT'S NOT A FIVE DAY, A WEEK, NINE TO FIVE JOB.
IT'S A 24 7, 7 DAY A WEEK JOB.
AND THAT'S WHY WE TRY AND, YOU KNOW, OUR RESPONSIBILITY IS TO DIRECT EVERYTHING TO YOU, NOT TO THEM AS A BOARD OF DIRECTORS, SORT OF FOR THE CITY.
WE DON'T WANT TO GO TO YOUR PEOPLE.
SO THIS IS OUR, THIS IS OUR BIG CHANCE TO GET, GET AN OPPORTUNITY TO DO THAT.
COUNCIL MEMBER TARSHA JACKSON.
UM, AND I, MY COLLEAGUE, WHAT HE JUST MENTIONED, THAT TRYING TO UNDERSTAND THE AIRPORT AND THEIR BUDGET, I MEAN, AIRPORT IS IN DISTRICT B, AND SO, UM, IT'S BEEN A CHALLENGE FOR ME TRYING TO UNDERSTAND, YOU KNOW, YOUR OPERATION.
AND SO I WOULD LOVE TO, YOU KNOW, JUST SPEND MORE TIME WITH YOU GUYS SO THAT I CAN JUST LIKE BE ABLE TO REPRESENT MY CONSTITUENTS BETTER.
UM, AND SO, UM, HOPEFULLY WE CAN DO THAT, UM, SOON IN THE FUTURE.
BUT I DO HAVE A QUESTION ABOUT THE ARPA DOLLARS.
YOU MENTIONED THAT YOU GIVE THE ARPA DOLLARS TO AIRLINES, AND I'M JUST TRYING TO UNDERSTAND THAT, DO THE AIRLINES AIRLINES APPLY FOR ARPA DOLLARS THEMSELVES? NO.
WE, WE DID ALL THE APPLICATIONS AS THE CITY OF HOUSTON, DEPARTMENT OF AVIATION, HOUSTON AIRPORT SYSTEM, AND MUCH OF THAT OF ALL, ALL OF THE CARES ACT, THE KRISA ACT, AND THE A ACT DOLLARS WERE PROVIDED TO US BY FORMULA.
GENERALLY THE FORMULA IS, IS THAT THERE'S A POT THAT THE FEDERAL GOVERNMENT HAS AVAILABLE FOR AIRPORTS, AND YOU'LL GET THE PROPORTIONATE SHARE OF THAT POT RELATIVE OR RELATED TO THE PROPORTIONATE SHARE THAT YOUR AIRPORT IN, IN TERMS OF PASSENGERS, UM, REPRESENTS TO THE TOTAL PASSENGERS ACROSS THE COUNTRY.
AND THAT PERCENTAGE WE GET, HENCE, WE, WE'VE DONE PRETTY WELL.
AND, AND THEN THE QUESTION IS, WELL, HOW DO YOU USE IT? AND YOU REMEMBER DURING THE DEPTHS OF THE PANDEMIC, UM, ONE OF THE QUESTIONS THAT CAME UP WAS, YOU KNOW, HOW DO WE HELP THE AIRLINES? HOW DO WE HELP THE CONCESSIONAIRES? AND SO THERE WAS, THERE'S, AND YOU CAN SEE IN THE KRISA AND ACT, THERE'S ACTUALLY A LINE ITEM OUT FOR CHRISTA CONCESSIONS.
AND THIS IS MONEY THAT WE WERE TO PASS ON.
THIS IS MONEY THAT WE HAD TO PASS ON TO THE CONCESSIONAIRE, WHICH WE DID, WHICH IS ABOUT 24 ACTUALLY TOTAL OF $30 MILLION.
AND THEN THE REST OF THE MONEY, IT'S A QUESTION.
WE COULD USE IT FOR ANY LAWFUL PURPOSE OF THE AIRPORT SYSTEM.
AND WE DECIDED THAT ONE OF THE BEST USE OF THAT MONEY WAS TO HELP OUR AIRLINE PARTNERS TO THE TUNE OF ABOUT $92 MILLION.
NOW WE MOVE FORWARD AND WE'RE SPENDING THE REST FOR, TO CARRY OUR CONTRACTS, OUR SKY TRAIN, OUR PARKING, UM, CONTRACTS, MANAGE THOSE, USE THAT MONEY FOR THOSE, AND THEN OF COURSE, TO WRITE DOWN THE DEBT SERVICE SO THAT WE GET TO A NET DEBT SERVICE PAYMENT THAT WE CAN VERY WELL AFFORD.
COUNCIL MEMBER CAYMAN, THANK YOU CHAIR.
AND, UH, TO COUNCIL MEMBER ROBINSON'S POINT, I APPRECIATE THAT PERSPECTIVE, RIGHT? THE, THE MINUTIA OF THE DAY-TO-DAY VERSUS OVERSEEING ALL THAT YOU ARE OVERSEEING, WHICH IS, UH,
[00:50:01]
AGAIN, NOT JUST OUR AIRPORTS, BUT NOT, AND NOT JUST GLOBAL EXPANSION, BUT GALACTIC EXPANSION, FOR LACK OF A BETTER WORD.I'VE NEVER, UM, KNOWN YOU TO BE ANYTHING BUT RESPONSIVE, UH, DIRECTLY TO ME, TO STAFF, UM, YOUR STAFF INCLUDED.
SO AGAIN, I JUST WANNA RECOGNIZE, UH, HOW FAR WE'VE COME AND THE INSTRUMENTAL NATURE IN WHICH OUR AIRPORTS PLAY.
AGAIN, IT'S UNDER ECONOMIC DEVELOPMENT BECAUSE OF ALL THE THINGS WE'RE DOING WITHOUT THE AIRPORTS, WE CAN'T BRING PEOPLE IN.
SO JUST WANTED TO RECOGNIZE THAT, IF I MIGHT JUST ONE LAST POINT THAT I WOULD MAKE, IT'S NOT ABOUT ME.
AS I MENTIONED THAT AT THE GROUNDBREAKING CEREMONY.
I MIGHT BE THE IDEA GUY, I MIGHT BE THE STRATEGIST, I MAY BE THE VISIONARY, BUT IT'S THESE INDIVIDUALS AND THE ENTIRE 1100 MEMBERS OF THE HOUSTON AIRPORT SYSTEM THAT MAKE HAPPEN.
WHAT WHAT HAS HAPPENED TO THIS POINT.
AND I'M REALLY, REALLY PROUD OF THEM.
THEY'RE THE ONES THAT GET THE JOB DONE.
AND I THINK YOU ADDRESSED MOST OF THIS IN YOUR RESPONSE TO COUNCIL MEMBER JACKSON.
I APPRECIATE YOUR HAVING SLIDE 12 IN HERE TO TALK ABOUT THE KRISA AND THE ARPA AND THE CARES FUNDING.
AND, UH, I THINK I HEARD YOU SAY I WAS GONNA ASK, AND I'M ALWAYS BLOWN AWAY BY WHEN HE JUST BLOWS A BILLION DOLLARS IN RESERVES.
I MEAN, IT WAS A BILLION DOLLARS IN RESERVES BEFORE THE PANDEMIC.
IT'S A BILLION DOLLARS IN RESERVES NOW.
SO BECAUSE, BUT FOR, BECAUSE OF THIS MONEY.
I MEAN, THAT'S, THAT'S PRETTY MUCH IT.
AND THEN, AND THEN THIS 162 MILLION LEFT, I THINK YOU SAID YOU'RE PAYING DOWN DEBT WITH IT.
AND HONORING SOME CONTRACTS AND, AND, AND WE'LL BE COVERING THE PARKING CONTRACT.
AND THEN THERE'S THE SKYTRAIN CONTRACT AS WELL THAT WE WILL BE COVERING.
AND THEN THAT'S THE END OF, AND THEN THAT'S THE END.
SO OF THE $207 MILLION OF DEBT, HOW MUCH IS THAT AS RELATED TO I TRIPP? VERY LITTLE.
WHAT IS THAT MOSTLY RELATED TO? SO RIGHT NOW, WE ONLY, I THINK IN 2021, WE FIXED OUT ABOUT 265 MILLION.
THAT IS, WE TRANSFERRED FROM COMMERCIAL PAPERS TO BONDS.
AND I THINK THE INTEREST RATE ON THOSE WAS THREE AND A HALF TO 4%.
WE WILL, AS A MATTER OF FACT, ONE OF THE THINGS THAT WE WILL NEED TO DO, AGAIN, FROM WEARING THE FINANCIAL HAT IS THIS SUMMER AND INTO FALL, WE WILL BE, UH, UNDERTAKING A FINANCIAL FEASIBILITY STUDY.
BECAUSE SOMETIME BETWEEN NOW AND FEBRUARY OF NEXT YEAR, WE WILL NEED TO BE BACK INTO THE CAPITAL MARKETS TO DRAW DOWN AND FIX OUT.
UM, THE COMMERCIAL PAPER THAT WE SPENT TODAY, WE'VE GOT $350 MILLION OF COMMERCIAL PAPER.
WE NEED TO, UH, UNLOAD THAT, FIX IT, AND THEN, UM, SECURE ANOTHER $350 MILLION TO FINISH OUT THE FINANCING FOR I TRIP.
SO I WOULD SAY THAT BY THE END OF, LET'S SAY, UM, JUNE, JULY OF 2024, WE'LL HAVE FIXED OUT.
AND AGAIN, THE TOTAL AMOUNT IN TERMS OF BONDS IS LIKELY TO BE ABOUT $750 MILLION.
TOTAL COST OF ATRIP WILL BE 1.3 BILLION.
AND EXPECTED COMPLETION DATE, JUNE, JULY OF 2024.
SO, AND NO OTHER COUNCIL MEMBER, EXCUSE MY LAST QUESTION.
I KNOW THAT ALWAYS TELL PEOPLE IF HOUSTON AIRPORT WAS A, A COMPANY UNTO ITSELF, IT'D BE A FORTUNE 500 COMPANY.
RIGHT? IT'S, IT'S A VERY SUCCESSFUL BUSINESS.
UH, BUT YET WE'RE STILL WITH THE CITY OF HOUSTON.
AND I UNDERSTAND RECENTLY, YOU KNOW, GOOD TO HAVE JIM HERE, BUT I UNDERSTAND WE LOST A-C-C-O-O.
UH, THAT'S WHY MS. HAMPTON IS PROBABLY SITTING IN YOUR ABILITY TO RECRUIT AND MAINTAIN EMPLOYEES GIVEN THE DYNAMICS OF WHAT WE HAVE TO OPERATE UNDER.
FIRST IS THAT, AS YOU ALL KNOW, THE GREAT RESIGNATION IS AFFECTING US ALL.
EMPLOYEES ARE BASICALLY CALLING THEIR SHOTS.
THEY'RE ESTABLISHING WHAT THEY WANT IN TERMS NOT JUST OF PAY, BUT ALSO THE BENEFITS, UM, THAT, THAT ARE AVAILABLE.
AND THEN SOME OPPORTUNITIES ARE OPENING UP.
SO OUR CHIEF COMMERCIAL OFFICER LEFT TO BECOME THE, THE CEO OF, OF JOHN WAYNE IN CALIFORNIA.
LET'S TALK ABOUT THIS FOR A SECOND, BECAUSE AGAIN, BUILDING LEADERSHIP IS ALSO PART OF MY JOB.
WE START OUT WITH, UM, ARI BOWRON, BIARI, FORMER COO, HE'S NOW MANAGING THE WORLD'S BUSIEST AIRPORT AS THE DIRECTOR OF HARTFIELD JACKSON LAND INTERNATIONAL.
LANCE LITTLE, UM, FORMER COO, HE IS NOW MANAGING DIRECTOR ADAM TACOMA, RIGHT? MM-HMM
NO, IN HE, I WAS ANSWER SEATTLE TACOMA, RIGHT? YES.
[00:55:01]
MANAGING DIRECTOR OF SEATTLE TACOMA.UM, WE HAD TED KITCHENS WHO WAS FORMER RUNNING INTERCONTINENTAL.
HE'S RUNNING NOW AN AIRPORT AS THE AS EXECUTIVE, UM, JUST OUTSIDE OF BOSTON.
UM, YOU HAVE PERRY MILLER WHO WAS RUNNING, UM, MANAGER OF HOBBY.
HE'S NOW RUNNING RICHMOND, VIRGINIA.
AND WE NOW HAVE, UM, CHARLENE REYNOLDS WHO CAME IN VERY, VERY SHORT SPRINT AND IS NOW MANAGING, UM, JOHN WAYNE AIRPORT.
AND SO WHEN IT COMES TO THE CFO, YOU KNOW, THE GENTLEMAN WALKS INTO MY OFFICE AND SAYS, THANK YOU FOR EVERYTHING YOU'VE DONE.
I'VE LEARNED HOW TO, UM, SELL AND FINANCE DEBT IN THE CAPITAL MARKETS.
YOU GOTTA PAY ME FOR THAT NOW.
YEAH, BUT YOU KNOW, I, I'VE GOT A, I'VE GOT A BABY COMING, I'VE GOT A NEW HOUSE.
I NEED MORE MONEY, AND THEY'VE OFFERED ME MORE MONEY.
AND SO WE JUST NEED TO MOVE ON.
AND KISHA IS DOING A GREAT JOB.
AND THEN SO I, I LOOK AT YOU AND I WOULD SAY YOU'RE CLOSER TO YOUR END OF YOUR CAREER THAN THE BEGINNING OF YOUR CAREER.
SO WE'RE GONNA BE FACED WITH WHERE DOES THE REPLACEMENT FOR MARIO DIAZ COME FROM? IS THAT PERSON INTERNAL OR EXTERNAL? THAT'S SOMETHING TO DISCUSS ON ANOTHER DAY.
WE HAVE A NUMBER OF PUBLIC SPEAKERS THAT WANT TO ASK QUESTIONS.
SO THANKS FOR THE OPPORTUNITY TO THANK YOU.
YOU KNOW, THIS, WE COULD PROBABLY SIT HERE FOR A COUPLE OF HOURS AND TALK ABOUT, UH, AIRPORT BECAUSE I, I'M, I'M SORT OF A GEEK.
I FOUND, FIND WHAT YOU GUYS AND LADIES DO EVERY DAY, SORT OF FASCINATING.
AND, UH, I ALWAYS TELL EVERYBODY WE'LL BE DOWN IN SPACEPORT TONIGHT.
WE HAVE OUR REDISTRICTING MEETING AT SPACE CENTER.
AND ALWAYS TELL PEOPLE, YOU KNOW, WHEN WE, WE MOVED HERE IN, IN 1990, HOBBY WAS THIS LITTLE BITTY SLEEPY AIRPORT TO THE SOUTH OF US.
AND NOW IT'S A HUGE INTER INTERNATIONAL AIRPORT THAT WINS A FIVE STAR INTERNATIONAL AIR, FOUR THAT WINS GREAT AWARDS, UH, 20 YEARS, 30 YEARS FROM NOW.
LOVE TO ENVISION WHAT SPACE PORT'S GONNA LOOK LIKE BECAUSE IT'S GONNA CHANGE THE LANDSCAPE OF, OF THAT AREA WITH PHENOMENAL ENGINEERING JOBS AND OPPORTUNITIES AND THINGS OF THAT NATURE.
SO, UH, KEEP UP THE GOOD WORK TEAM AND, UH, UH, LOOK FOR BIGGER AND BETTER THINGS FOR YOU IN THE FUTURE.
AND, UH, I WOULD ALSO RECOGNIZE MR. IKIN, WHO'S VERY INVOLVED IN YOUR OPERATIONS AS WELL.
MAYBE YOU'D SAY TOO MUCH, RIGHT? MARIO
WE'LL HAVE A COUPLE OF, OH, BY THE WAY, COUNCIL MEMBER ROBERT GAGO JOINED US AND NOW HAS ANOTHER MEETING.
SO, UH, MR. JASON OLIVER, I THINK WILL BE JOINING US VIRTUALLY.
I'M REALLY APPRECIATIVE OF THE ART I'M SEEING THROUGHOUT THE AIRPORTS, ESPECIALLY LOCAL ARTISTS.
I WAS IN, UM, IH LAST WEEK, AND THERE'S ONE ARTIST, KINE SMITH, WHO'S TAPESTRY DOESN'T HAVE A NAMEPLATE.
IT'S A SMALL THING, BUT I, I JUST WANNA KNOW, UM, WHO TO CONTACT TO MAKE SURE THAT'S, THAT'S ADDRESSED.
'CAUSE I THINK IT'S IMPORTANT THAT PEOPLE KNOW THE ARTIST WHOSE, WHOSE WORK THEY'RE SEEING.
AND THEN I, I GUESS THIS QUESTION IS, UH, TOWARD, UH, COUNCIL MEMBER MARTIN, MANY OF US ARE, ARE REALLY CONCERNED ABOUT THE PROCEDURAL CHANGE, REMOVING THE PUBLIC'S OPPORTUNITY TO SPEAK PUBLICLY TO CITY STAFF DURING THESE BUDGET WORKSHOPS.
THIS IS NOT CONSISTENT WITH, WITH PREVIOUS YEARS AND IS NOW OUR ONLY OPPORTUNITY TO DO SO AFTER THE COMMITTEE MEETING.
POLICY CHANGE DURING THE PANDEMIC, WHICH I HOPE WILL ALSO BE REVERSED.
THIS CHANGE MIDWAY IS A SIGNIFICANT INCONVENIENCE FOR THOSE OF US TAKING TIME OUT OF OUR WORKDAY TO PARTICIPATE.
IT SEEMS LIKE THIS WAS YOUR DECISION.
ARE YOU WILLING TO RESUME THE NORMAL POLICY THAT WE STARTED THIS BUDGET CYCLE WITH? UH, AND IF NOT, PLEASE EXPLAIN WHY PUBLIC PARTICIPATION IS BEING DIRECTLY UNDERMINED THIS YEAR.
IF PUBLIC SPEED SPEAKER HAS ANY QUESTIONS, THE APPROPRIATE PROCESS IS FOR THOSE QUESTIONS TO BE SUBMITTED TO SHAREPOINT.
UNDER YOUR NAME, THROUGH YOUR COUNCIL MEMBER.
NOW THAT WAS A QUESTION TO YOU, COUNCIL MEMBER MARTIN.
WELL, JASON, I JUST ANSWERED IT, SO THAT'S A NO.
NEXT SPEAKER WE HAVE MS. SAVA BLANDING.
GOOD AFTERNOON, CITY COUNCIL MEMBERS.
UM, LAST NIGHT I HAD A CONVERSATION WITH MY HUSBAND ABOUT THE DAY'S BUDGET HEARING AS ONE DOES, AND I ASKED HIM HOW HE WOULD'VE RESPONDED, AND HE SAID, I WOULD'VE ASKED, WHAT ARE YOU AFRAID OF? HE COMMENTED ON HOW THERE WERE ONLY SEVEN CONSTITUENTS ASKING QUESTIONS ABOUT HPD YESTERDAY.
THE FIRST DEPARTMENT FINISHED 14 MINUTES AHEAD
[01:00:01]
OF TIME IF TIME WAS REALLY AN ISSUE.IT IS UPON THE COUNCIL TO KEEP EVERYONE TO TIME.
HOWEVER, THERE WERE AT LEAST THREE TO FOUR REPEAT QUESTIONS ABOUT MOWING SCHEDULES.
IN THE MIDDLE OF RUSH PUBLIC TESTIMONY, THERE WAS AN UN RUSHED CONVERSATION WITH ANOTHER HOUSTON POLICE DEPARTMENT EMPLOYEE.
THIS IS NOT ABOUT TIME TO HAVE GIVEN PUBLIC SPEAKERS.
A FULL THREE MINUTES WOULD'VE ONLY ADDED 14 MINUTES, WHICH THE GENERAL SERVICES DEPARTMENT'S PUNCTUALITY PROVIDED.
WHY IS THE PUBLIC NOT ALLOWED MORE TIME? WHAT WOULD THOSE 14 MINUTES HAVE COST THE CITY, OTHER THAN AT LEAST A HUMBLE NOD TO DEMOCRACY REGARDING THE AIRPORTS, WHAT ARE PLANS TO IMPROVE PUBLIC TRANSIT? TO ASK ACCESS THE AIRPORTS AND WHAT ARE EFFORTS TO INCLUDE AND PROMOTE MORE LOCAL BUSINESSES IN THE AIRPORT SYSTEM SUCH AS LOCAL RESTAURANTS AND LOCAL RETAILERS? THANK YOU, MS. BLANDY.
UH, TO MR. OLIVER HAD A QUESTION.
1.75% OF ALL OF OUR VERTICAL CONSTRUCTION DOLLARS GO TO THE ARTS WITHIN THAT FACILITY.
SO PERCENTAGE, 1.75% OF THE TOTAL VERTICAL SPEND GOES TO THE ARTS WITHIN AN AIRPORT.
YOUR PICTURES, PAINTINGS, DIFFERENT TYPES OF THINGS.
THANK YOU MS. BLANDING FOR COMING AGAIN.
UM, TRYING TO GET CLARIFICATION ON YOUR STATEMENT SLASH QUESTION.
UM, AS IT PERTAINS TO THE, WHAT ARE YOU SCARED PART IS THAT DIRECTED TOWARDS COUNCIL AS IN WHILE WE AREN'T ALLOWING MORE TIME? YEAH, I MEAN, I UNDERSTAND TIME'S AN ISSUE AND YOU, NOBODY LOVES PUNCTUALITY MORE THAN ME.
IF I'M RUNNING A MINUTE, IT'S A MEETING, IT'S GONNA BE LIKE 15 MINUTES, BUT WE GOT 14 EXTRA MINUTES.
'CAUSE GENERAL SERVICES DEPARTMENT WAS PUNCTUAL AND THEN IT FELT LIKE I WAS WATCHING PEOPLE RUN OUT THE CLOCK BECAUSE THERE WERE LITERALLY THREE TO FOUR QUESTIONS THAT WERE EXACTLY THE SAME ABOUT MOWING SCHEDULES.
AND THEN WHEN IT CAME TO PUBLIC COMMENT AND WE'RE TAKING TIME OUT OF OUR DAY, IT'S ONE MINUTE WE'RE RUSHED, WE'RE NOT GIVEN ANSWERS, AND WE'RE TOLD JUST TO SUBMIT IT.
WHAT'S THE POINT OF THIS? YEAH, I MEAN LIKE, WE'RE SUPPOSED TO BE A DEMOCRACY.
WELL, I THINK THE, AND I APPRECIATE YOUR COMMENTS.
I THINK THE MAIN REASON FOR EVERYTHING IS TO GET THE PUBLIC CLARIFICATION ON ANY QUESTIONS THAT YOU MAY HAVE.
AND SOMETIMES THE QUESTIONS AND THE ANSWERS GO ABOVE THE TIME THAT WE REASONABLY HAVE.
SO WE HAVE THE PROCESS IN PLACE THAT IF THE QUESTIONS AND ANSWERS AREN'T PROVIDED IN A TIMELY MANNER, THEN YOU CAN SUBMIT THOSE QUESTIONS.
BECAUSE AT THE END OF THE DAY, AS CONSTITUENTS, YOU ALL HAVE RIGHTS TO KNOW ANY ANSWER TO ANY QUESTION THAT YOU MAY HAVE.
AND SO IF THE POINT IS TO ENSURE THAT YOU GET THE QUESTIONS ANSWERED, THEN WE HAVE THAT, UM, ABILITY TO DO THAT.
AND SO I DON'T WANT TO GET CAUGHT UP TOO MUCH IN THE DIFFERENT SYSTEMS AND PROCESS 'CAUSE WE ALL MAY HAVE DIFFERENT OPINIONS AND PERSPECTIVES ON THAT.
BUT IF YOUR END GOAL IS TO ENSURE THAT YOU HAVE MORE INFORMATION AND MORE CLARITY BASED ON THE QUESTIONS THAT YOU MAY HAVE, THEN WE DO EVERYTHING WE CAN AS A COUNCIL TO PROVIDE THOSE ANSWERS TO YOU.
UM, SABA, I MEAN THAT WAS ONE OF MY, UM, QUESTIONS WAS WE HAVE THE AIRPORT HERE IN THE POLICE DEPARTMENT.
I MEAN, THEY SHOULD BE ABLE TO ANSWER THE CONSTITUENTS QUESTIONS.
I WOULD WANT TO GET MY QUESTIONS ANSWERED.
IF I'M, IF I'M SITTING HERE IN THIS CHAMBER, I WOULD LIKE TO GET THE QUESTIONS ANSWERED.
SO I WOULD LIKE TO UNDERSTAND, YOU KNOW, WHY ISN'T THAT POSSIBLE? UH, CAN WE NEXT YEAR SCHEDULE THESE HEARINGS FOR, YOU KNOW, THE, THE, THE, UM, WORKSHOPS A HOUR EACH DEPARTMENT SPEND AN HOUR TO GIVE PEOPLE TIME TO GET THEIR ANSWERS.
I I'LL LET YOU GET THEIR QUESTIONS ANSWERED.
YOU PILOT WHILE I GO THROUGH THE NEXT AND YOU, Y'ALL CAN DISCUSS IT BACK THERE AWAY FROM THE PUBLIC.
THAT'S NOT APPROPRIATE FOR THE PUBLIC.
WE'LL HAVE MR. BRO BUTLER NEXT OR I'LL JOIN YOU BACK THERE.
UM, I HAVE NO DIRECT QUESTIONS AT THIS POINT IN TIME IN REGARDS TO THE AIRPORT.
I THINK THAT THE HOUSTON AIRPORT, UH, DOES AN ABOVE AVERAGE JOB.
IN OTHER WORDS, IT'S NOT EXEMPLARY.
BUT I AM VERY PROUD OF MY AIRPORT.
I'VE GONE THROUGH MANY IN THIS COUNTRY, BUT I DO HAVE JUST ONE CONCERN.
AND NOW I AM GETTING TO A QUESTION.
UH, I'M FROM NORTHEAST HOUSTON AND I WOULD LIKE, SINCE HOUSTON FIRST IS AN INITIATIVE, EVERYTHING ABOUT THIS CITY'S INITIATIVE, I WOULD LIKE TO HAVE ASKED A DIRECTOR WHO IS ON THE OTHER SIDE OF THE DOOR AND PROBABLY ON THE FIRST FLOOR NOW, WHAT WOULD HE DO? OR COULD HE PUT A PROGRAM TOGETHER TO MAKE SURE THAT SINCE HIS AIRPORT IS IN DISTRICT B, WHERE I COME FROM, THAT HE PUTS A PROGRAM TOGETHER TO TRY TO GET EMPLOYEES THAT LIVE WITHIN A 10 TO 15
[01:05:01]
MILE RADIUS OF HIS AIRPORT TO INCREASE ON TIME TO INCREASE HIS WORKFORCE.BUT I DON'T GET A CHANCE TO ANSWER THAT QUESTION BECAUSE HE TALKED ABOUT BEING A VISIONARY.
HE TALKED ABOUT DOING THINGS THAT WOULD BUILD UP THIS CITY.
AND UNFORTUNATELY, UNLESS SOMEBODY ELSE CAN ASK ME ABOUT THE VISION OF THE DIRECTOR OF THE AIRPORTS ABOUT HIRING PRACTICES, I, I CAN'T GET THAT ANSWER.
SO HE PUTS ON A PROGRAM TWICE A YEAR, I BELIEVE IT IS OUT IN THAT AREA.
'CAUSE I LIVE A LITTLE BIT NORTH OF YOU.
AND, UM, I FORGOT WHAT HE CALLS IT.
UM, BUT IT'S AN OPPORTUNITY FOR PROSPECTIVE EMPLOYER GROUPS THAT WANT TO WORK FOR THE AIRPORT TO UNDERSTAND A LITTLE BIT MORE ABOUT THAT PROCESS AND ALSO THE MWBE PROCESS THAT SHOULD HELP THOSE TYPES OF BUSINESSES.
ALSO INDIVIDUALS WHO ARE LOOKING FOR OPPORTUNITIES AS WELL.
SO HE DOES DO THAT, UH, IN CONJUNCTION WITH A, A NUMBER OF FOLKS WITHIN HIS AIRPORT.
AND I DON'T KNOW WHERE THEY ARE TODAY WITH IT, BUT I'LL TRY AND FIND OUT BECAUSE WE HAVEN'T, IT JUST REMINDED ME BECAUSE OF COVID, WE HAVEN'T HAD MANY OF THOSE OPPORTUNITIES, BUT IT, IT WOULD HAPPEN LITERALLY TWICE A YEAR THAT HE WOULD PUT ON A, A CONVA CAVE, A A THAT HAD, UH, HAD THOSE OPPORTUNITIES FOR INDIVIDUALS AS WELL AS BUSINESSES IN PARTICULAR IN THAT AREA.
WELL, THANK YOU FOR THE ANSWER.
AND WITH ALL DUE RESPECT, UH, THE MARKETING OF THAT DOESN'T GET OUT TO THE BASIC LEVEL OF PEOPLE.
BUT I WOULD ALSO LIKE TO EXTEND AN ADDITIONAL REQUEST.
IF YOU COULD ASK HIM IF FUNDS ALLOW, IF TIME ALLOWS THAT HE CAN INCREASE IT FROM TWO TO FOUR.
IN OTHER WORDS, CAST CREATE A BIGGER NET TO CAST MORE PEOPLE.
BECAUSE AT THIS POINT IN TIME, USING THIS GREAT RESIGNATION, YOU STILL GOTTA BAKE THE DONUTS, RIGHT? DO ME A FAVOR, SEND MY DISTRICT, UM, EMAIL DISTRICT E AT HOUSTON TX DOT OF AN ADDRESS.
SO I HAVE YOUR EMAIL ADDRESS AND I WILL COPY YOU ON THE EMAIL I SEND TO MARIO DIAZ ASKING THAT PARTICULAR QUESTION.
YOU HAVE VERY EXEMPLARY STAFF EVERY TIME I'VE INTERACTED WITH THEM.
WELL THANK YOU FOR SAYING THAT.
AND THERE'S ONE OF 'EM SITTING RIGHT HERE AND I AGREE WITH YOU.
THAT CONCLUDES PUBLIC SPEAKERS FOR HOUSTON AIRPORT SYSTEM.