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AIRPORT SYSTEM BUDGET WORKSHOP.IN THE CHAMBER, WE HAVE COUNCIL MEMBER TWILA CARTER.
WE HAVE COUNCIL MEMBER JOAQUIN MARTINEZ.
WE HAVE STAFF FROM COUNCIL MEMBER PECK AND COUNCIL, MY MAYOR, PRO TEM CASTEX TATUMS. WE HAVE STAFF FROM COUNCIL MEMBER, MY VICE CHAIR, MARIO CASTILLO'S OFFICE, UM, AND, UM, JULIAN RAMIREZ'S OFFICE, AND TASHA JACKSON'S OFFICE.
UH, GOOD MORNING FOR DISTRICT J IS ONLINE AND WELCOME BACK, EVERYBODY.
I HOPE EVERYBODY IS OKAY AND, AND SURVIVED THE STORM AS BEST YOU COULD.
UM, WE WILL GET RIGHT INTO IT.
AND, UM, I WELCOME OUR DIRECTOR AND, AND COHORT, AND WE NOW HAVE COUNCIL MEMBER WILLIE DAVIS JOINING US TOO.
AND THE FLOOR IS YOUR DIRECTOR.
UM, SO AGAIN, I'D LIKE TO START BY, UH, SAYING, UM, GOOD MORNING TO EVERYBODY, UH, HERE TODAY.
JOINING ME IS, UH, CLINT, STEVEN, WHO IS MY CFO.
I ALSO HAVE KELLY WOODWARD, WHO IS MY, UH, CHIEF COMMER, UH, CHIEF OPERATING OFFICER, UH, LILIANA RAMBO, WHO IS OUR, UM, CHIEF TERMINAL MANAGEMENT AND ADMINISTRATION OFFICER.
AND THEN I ALSO HAVE, UH, DARCY, ANNA, MO, AND CHERYL, WHO ARE THE PEOPLE IN OUR OFFICE, OUR BUDGET OFFICE, THAT, THAT KIND OF PUT THIS ALL TOGETHER FOR US.
UM, AGAIN, I'D LIKE TO AGAIN, YOU KNOW, WELCOME YOU EVERYBODY HERE AND THANK EVERYBODY FOR THE OPPORTUNITY TO SPEAK AND, AND PRESENT OUR BUDGET.
UM, AGAIN, THE HOUSTON AIRPORT SYSTEM REPRESENTS ABOUT $36.4 BILLION IN ANNUAL ECONOMIC ACTIVITY FOR THE HOUSTON REGION.
IS RESPONSIBLE FOR ROUGHLY 190,000 JOBS, UH, TAKES NO CITY GENERAL FUND DOLLARS.
SO WE ARE AGAIN, AN ENTERPRISE FUND ON THAT.
UM, AND THEN AGAIN, IT IS, UH, OVER 1300 EMPLOYEES OF THE CITY OF HOUSTON ARE EMPLOYED BY THE HOUSTON AIRPORT SYSTEM.
UH, SO AGAIN, WE WILL BE COVERING A NUMBER OF, OF TOPICS TODAY.
SO, UH, AND AGAIN, WE DO HAVE SOME, UH, APPENDIX SLIDES, AND WE'LL HAVE TIME FOR QUESTIONS AT THE END.
SO, AGAIN, LOOKING AT OUR INITIATIVES THAT WE'RE TRYING TO ACCOMPLISH FOR THE YEAR, UH, AGAIN, BUILDING OFF OF OUR FISCAL 24 INITIATIVES, UH, AGAIN, WE ARE MAINTAINING OURSELVES AS TRYING TO, UH, DO A FIVE STAR AIRPORT, UM, AT BOTH AIRPORTS.
SO, HOBBY AIRPORT IS A, FOR THE THIRD YEAR IN A ROW, RANKED A FIVE STAR SKYR AIRPORT THAT WAS ALSO NAMED THE BEST REGIONAL AIRPORT IN NORTH AMERICA.
UM, AGAIN, WE ARE DOING THESE, UM, WHILE WE'RE, YOU KNOW, ACCEPTING RECORD PASSENGER LEVELS.
UH, BUSH IS A FOUR STAR, UM, AIRPORT.
UH, AND THE GREAT THING ABOUT THAT IS WITH OUR AUDIT THIS YEAR, UH, WE HAVE, UH, INCREASED, UM, OUR, OUR SCORE.
UM, AND THEN AGAIN, A, UM, GREAT THING FROM A CITY PERSPECTIVE IS, IS THAT THE HOUSTON AIRPORT SYSTEM WAS NAMED THE BEST ART PROGRAM, UH, FOR AIRPORTS IN THE ENTIRE WORLD.
UM, SO AGAIN, WE'VE GOT SOME PRETTY STIFF COMPETITION, UH, BUT WE'VE GOT SOME PRETTY GOOD, UM, SOME GOOD QUALITY WORK, UH, IN, IN OUR PROGRAM THAT WE HAVE AT THE AIRPORT.
UM, AGAIN, ADDING TO THE INITIATIVES THAT WE'LL CONTINUE TO DO TO DO BETWEEN 25, OR, SORRY, 24 AND 25, IS AGAIN, MAKING SURE OUR IMPROVING THE CUSTOMER EXPERIENCE FROM CURB TO GATE.
AND ONE OF THE WAYS THAT WE DO THAT IS WITH OUR, AGAIN, PASSENGER JOURNEY SCORECARD.
AND SO IT'S AN APP THAT WE, UM, AS THE AIRPORT MANAGEMENT AND AIRPORT STAFF HAS, SO THEY CAN SEE THEIR IMPACT ON WHAT'S HAPPENING AT THE AIRPORT IN REAL TIME.
AND SO OUR PASSENGER JOURNEY MONITORS OUR RESTROOM CLEANLINESS, OUR TSA WAIT TIMES, OUR CUSTOMS WAIT TIMES, OUR, UH, ROADWAY TRAFFIC.
UM, IT ALSO MONITORS OUR WIFI, OUR CONVEYANCES, UM, THE TEMPERATURE IN THE AIRPORT, UH, THE WA UH, WATER PRESSURE IN THE AIRPORT.
UM, OUR GENERAL DELAYS, UH, FOR THE AIRLINES, UH, OUR SECURITY SYSTEM AT THE AIRPORT, AND THEN ALSO HAS OUR LIFT STATIONS TO MAKE SURE THAT THE ROADS ARE CLEAR OF WATER, UH, AND THEN ALSO OUR PARKING STATUS.
UM, WE'RE CONTINUING TO ADD ITEMS TO THAT, UH, SO THAT, AGAIN, OUR, OUR FOLKS, UM, CAN SEE IN REAL TIME WHAT'S HAPPENING AT THE AIRPORT, UM, AND WE CAN REACT TO ISSUES THAT WE HAVE.
UH, ANOTHER INITIATIVE THAT WE'RE GONNA CONTINUE TO DO IS OUR SUSTAINABILITY INITIATIVES.
SO, UH, AIRPORT COUNCIL INTERNATIONAL HAS AN ACCREDITATION PROGRAM TO SPECIFICALLY DESIGNED FOR AIRPORTS ON HOW WE DEAL WITH OUR, UH, CARBON EMISSIONS.
UH, WE HAVE ACHIEVED, UH, CARBON ACCREDITATION LEVEL ONE, UH, AND OUR LEVEL TWO, UH, SUBMISSION PACKAGE HAS BEEN SUBMITTED.
SO WE ANTICIPATE SOMETIME THAT THIS FALL, UH, WE'LL BE, UH, CERTIFIED AS LEVEL TWO.
AND THEN FROM THERE, WE'LL, UH, CONTINUE TO, TO UPGRADE TO LEVEL THREE, AND THEN FOUR AND FOUR PLUS.
ADDITIONALLY, YOU KNOW, THE AIRPORT SYSTEM, UH, CONTINUES TO ADD, UH, AMENITIES FOR THE CUSTOMERS AND THE TRAVELING PUBLIC.
SO WE'VE RECENTLY COMPLETED OUR NEW INTERFAITH PRAYER ROOM AND
[00:05:01]
EVOLUTION, UH, ROOM IN THE INTERNATIONAL TERMINAL.UM, GOT GREAT FEEDBACK FROM THE MUSLIM COMMUNITY ON THAT.
UM, IF WE THINK ABOUT THE AMOUNT OF TRAFFIC THAT WE HAVE THERE, UM, WE'VE GOT EMIRATES, QATAR, AND, UH, TURKISH.
SO A HIGH GENERATION OF, OR A HIGH COLLECTION OF MUSLIM TRAVELERS, SO THEY'RE VERY APPRECIATIVE OF THAT.
UM, ADDITIONALLY, WE HAVE A NEW, UH, COMPANION CARE CHANGING FACILITY AT HOBBY, UM, AND THEN WE'LL ALSO BE OPENING ONE AT BUSH.
UM, AND THEN ALSO WE'VE OPENED AT BUSH A BRAND NEW SENSORY ROOM.
UM, SO FOR SOME OF THOSE TRAVELERS THAT ARE, UM, TRAVELING WITH TRAVELERS ON THE, ON THE AUTISM SPECTRUM, THE SENSORY ROOM IS A PRETTY NICE RESPITE FROM THE HUSTLE AND BUS OF THE AIRPORT TO GET OUT OF THERE.
UM, ADDITIONAL THINGS THAT WE'VE ADDED LATELY, WE'VE GOT THE FIRST INSTALLATION OF ANT FLOW.
UM, SO WE PROVIDE FEMALE FEMININE PRODUCTS IN THE, IN THE, IN THE WOMEN'S RESTROOMS. UH, BUT THEN WE ALSO HAVE, THESE ARE THE NEW MODERN DESIGNS, SO THAT THEY NOTIFY US ABOUT THE LEVELS OF, UM, THE, THE, THE, THE, THE CONTAINERS SO THAT WE NEVER WEREN'T RUN OUT.
SO WHEN THINGS GET LOW, WE HAVE THE ABILITY TO REPLACE IT.
UM, WE ARE, AGAIN, CONTINUING TO ADD MULTIPLE NEW CONCESSIONS TO BOTH AIRPORTS, UH, AND AGAIN, THE, THE, THE ART PROGRAM.
UM, WE CONTINUE TO, TO, TO, YOU KNOW, ADD TO THAT BECAUSE AGAIN, WE DON'T WANT TO GET CAUGHT.
SO WHEN WE RUN IT, WE, WE, WE WON IT THE FIRST TIME I TOLD OUR ART DIRECTOR, I'M LIKE, LISTEN, THIS IS A GREAT AWARD, UH, BUT WE CAN'T GET CAUGHT.
UM, AND SO HE DID AN EXCELLENT JOB, UH, CONTINUING TO UPGRADE THE AIRPORT.
UM, AND AGAIN, WE ARE GOING TO CONTINUE BECAUSE AGAIN, I'D LIKE TO WIN IT AT, AT GET THE HAT TRICK.
YOU KNOW, I'M HOCKEY PERSON, SO THREE YEARS IN A ROW WOULD BE PERFECT FOR ME,
UM, AND SO NEXT SLIDE, PLEASE.
UM, ADDITIONALLY, YOU KNOW, AGAIN, ONE OF SOME OF THE CHALLENGES AT THE AIRPORT, WE'RE, WE'RE DOING, UH, NEW INITIATIVES TO MAKE SURE THAT WE CAN ADDRESS THE TRAFFIC CHALLENGES THAT WE FACE.
SO, UM, WE'VE RECENTLY OPENED A NEW PARKING DECK, UH, OR DECKS, UH, AT IAH.
SO THAT ADDED AN, AN ADDITIONAL 600 PARKING SPOTS.
UM, WE REOPENED THE, THE OLD CDE GARAGE ENTRANCE AT THE MOUTH OF THE AIRPORT.
SO AGAIN, IT GETS A LOT OF TRAFFIC OFF THE ROAD SOONER, UM, THROUGH THE CDE CIRCUIT, UM, FOR THE SUMMER, WE'RE ADDING ADDITIONAL TRAFFIC CONTROL STAFF, UM, NEW POLICE OFFICER, UM, YOU KNOW, MONITORING POSITIONS THROUGHOUT THE ROADWAY SYSTEM.
UM, AND THEN WE'RE ALSO GONNA BE EXPANDING OUR TOW TRUCK PROGRAM, UH, BECAUSE OF THE FACT THAT, AGAIN, ANY KIND OF SMALL SNAFU AT THE AIRPORT, UH, CAN CAUSE CHALLENGES TO THE, TO THE AIR, UH, TO THE, UH, ROADWAYS THERE.
UM, AND SO WE WANNA MAKE SURE THAT WE'RE PREPARED FOR, UH, FOR ALL CONTINGENCIES THAT WE CAN COME, COME ACROSS THERE.
UH, AGAIN, CONTINUING TO WATCH, UM, AIRFIELD EXCELLENCE THERE.
SO, UM, WE'RE CONTINUING WITH THE, UH, HOBBY, UH, NON-STANDARD TAX WHEEL PROJECT.
SO THAT'S A, UH, WHERE WE'RE TAKING THE OLD CONFIGURATION THAT MAY CONFUSE PILOTS, AND THEN BASICALLY IMPLEMENTING A NEW CONFIGURATION THAT'S MORE 90 DEGREE TURNS, UM, SO THAT PILOTS CAN'T GET CONFUSED ON THE AIRFIELD, UH, WHICH COULD CAUSE A SAFETY INCIDENT.
UH, WE'RE ALSO, UH, AGAIN, UH, IMPLEMENTING A SAFETY MANAGEMENT SYSTEM PROGRAM, UH, SO SMS FOR SHORT.
AND SO THAT'S, AGAIN, A PROGRAM THROUGHOUT THE AIRPORTS WHERE, UM, WE WILL LOOK AT INCIDENTS AND ACCIDENTS, UH, ASSESS THEM FOR RISK, AND THEN FIGURE OUT WAYS THAT WE CAN MAKE SURE THAT THESE DON'T HAPPEN.
AGAIN, THIS NOT ONLY COVERS THE AIRPORT EMPLOYEES AS FAR AS THE CITY OF HOUSTON EMPLOYEES, BUT IT INCLUDES ALL EMPLOYEES AT THE AIRPORT.
SO THIS WILL BE ACTIVITIES ON THE RUNWAYS, ON THE RAMPS AND THE TERMINALS, ANYTHING THAT WE CAN DO FROM A, A SAFETY MANAGEMENT SYSTEM TO BE ABLE TO ANALYZE THE RISK THAT WE HAVE AND MITIGATE THAT.
ADDITIONALLY, THE AIR CARRIERS AT, UM, IAH AND HOBBY ARE ASKING FOR THE, THE POTENTIAL FOR US TO, TO ADD RUNWAY LENGTH THERE.
UM, SO IT'S A TECHNICAL KIND OF THING WHERE WE'VE, UM, CLEARED OUT, MADE SURE THE END OF THE RUNWAYS ARE CLEAR SO THAT THE AIRLINES CAN GET AN EXTRA THOUSAND FEET OF DEPARTURE CAPACITY OVER THERE.
UH, AND AGAIN, WE ARE EXPANDING THAT, UH, THROUGHOUT, YOU KNOW, THE, RIGHT NOW IT'S OUR TWO DEPARTURE RUNWAYS THAT WE'VE COMPLETED IT ON, AND WE'RE, WE'RE LOOKING AT THAT FOR OTHER ONES.
UM, AIR SERVICE WISE, YOU KNOW, AGAIN, WE ARE IN THE PRIMARY BUSINESS OF PRI PROVIDING AIR SERVICE TO HOUSTON, AND, UM, SO WE'VE ADDED A BRAND NEW AIRLINE, WHICH IS A VELO AIRLINES THAT'LL BE STARTING IN JUNE.
UH, THAT AIRLINE ACTUALLY IS HEADQUARTERED IN HOUSTON, AND SO THEY ACTUALLY DON'T FLY IN HOUSTON UNTIL NOW, BUT, UM, THEY'VE BEEN RUNNING UP AND DOWN THE EAST AND THE WEST COASTS.
UH, BUT IN JUNE, WE WILL WELCOME THEM TO THE, UH, STABLE, UH, AND THEN ALSO ADDING A NEW NONSTOP DESTINATION.
SO, INTERNATIONALLY, WE'VE ADDED GEORGETOWN GUIANA, UH, WHICH IS AGAIN, A, A, A PARTNERSHIP WITH US AND THE BUSINESS COMMUNITY BECAUSE OF THE OIL THAT'S DOWN THERE.
THE OIL INDUSTRY WAS VERY, UM, INTERESTED IN MAKING SURE THAT WE CAN GET A NONSTOP FLIGHT DOWN THERE.
AND SO WE WORKED WITH, UH, THE GOVERNMENT, UH, WE WORKED WITH THE, UM, UH, HOUSTON FIRST, WE WORKED WITH A LOT OF THE CORPORATIONS IN TOWN, UM, TO BE ABLE TO ESTABLISH IT.
AND THEN UNITED AIRLINES, UH, OBVIOUSLY WHO, WHO PUT THAT FIGHT TOGETHER.
UM, ADDITIONALLY WE'VE GOT TULUM, MEXICO, UH, MEDELLIN CO OIA IS GONNA BE COMING, AND THEN WE'VE ALSO GET, AVELO IS GONNA BE, AGAIN, THEIR NONSTOP DESTINATION IS GONNA BE OUTTA NEW HAVEN, CONNECTICUT, UM, FROM HOBBY NEXT SLIDE.
AND AGAIN, THAT'S, YOU KNOW, AGAIN, ALL BASED ON OUR STRATEGIC PRIORITIES, WHICH
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ARE TO MAKE OUR PASSENGERS HAPPY, ACT RESPONSIBLY TO ACHIEVE SOCIAL, ENVIRONMENTAL, AND ECONOMIC ECONOMIC SUSTAINABILITY.WE WANT TO BUILD PLATFORMS FOR FUTURE SUCCESS AND INVEST IN OUR PARTNERSHIPS AND IN OUR EMPLOYEES.
UH, AGAIN, GREAT THING ABOUT THE HOUSTON AIRPORT SYSTEM NOW IS, IS THAT WE CONT AS WE CONTINUE TO ADD DESTINATIONS, YOU KNOW, IT, IT STRENGTHENS OUR BUSINESS COMMUNITY.
IT STRENGTHENS OUR, OUR CULTURE, UM, AND OUR CONNECTION TO OTHER, UM, MARKETS.
UH, RIGHT NOW, WE ARE GONNA BE OFFERING A, UH, 194 NONSTOP DESTINATIONS, UH, BETWEEN THE TWO AIRPORTS.
AND SO THAT, AGAIN, IS ONE OF THOSE THINGS THAT REALLY HELPS STRENGTHEN THE HOUSTON COMMUNITY BECAUSE THE, WE CAN ATTRACT BUSINESSES, UH, AND AGAIN, ATTRACT, UH, GLOBAL TALENT, UH, AND THEN AGAIN, UH, ATTRACT PEOPLE TO LIVE HERE BECAUSE OF THE FACT THAT THEY CAN GET NONSTOP BACK TO WHERE THEY, WHEREVER THEY CAME FROM, UH, INTERNATIONALLY.
SO AGAIN, UH, HAVING 194 NONSTOP DESTINATION IS DEFINITELY SOMETHING TO BE PROUD OF.
UH, ONE OF THE THINGS THAT WE ARE FOCUSING ON, AGAIN, IS, IS THAT, YOU KNOW, ADDING THE INFRASTRUCTURE THAT WE NEED TO BE ABLE TO MEET THE DEMANDS AS WE GO FORWARD.
UM, SO IF WE LOOK AT WHERE, YOU KNOW, HOUSTON IS PROJECTED TO GO, UH, AGAIN, WE HAD ROUGHLY 60 MILLION PASSENGERS LAST, UH, LAST YEAR, AND WE ANTICIPATE THAT NUMBER TO GROW.
IF WE LOOK AT MEMORIAL DAY, THAT'S COMING UP FOR US RIGHT NOW, WE'RE ANTICIPATING AT LEAST A 4% INCREASE.
UH, IF WE LOOK AT OUR SUMMER TRAFFIC, THAT'S SOMEWHERE AROUND 7% INCREASE OVER THE PREVIOUS YEAR.
UM, SO AGAIN, GROWTH IS, IS PRETTY STRONG AT THE AIRPORT SYSTEM, UH, AND WE'RE EXCITED TO BE ABLE TO ADD, UH, INFRASTRUCTURE NECESSARY TO MEET THAT.
BUT IF WE LOOK AT OVER THE LONG RUN, UM, HOUSTON IS AN ATTRACTIVE MARKET FROM A BUSINESS PERSPECTIVE AND A, AND A AND A LIVING HERE PERSPECTIVE, RIGHT? SO WE'VE GOT 140,000 ISH PEOPLE MOVED INTO THE REGION, UM, LAST YEAR, AND THAT, AGAIN, GENERATES A LOT OF DEMAND FOR AIR TRAVEL.
UM, SO WE LOOK AT, YOU KNOW, OVER THE NEXT 25 YEARS, TRAFFIC THROUGH THE AIRPORTS IS SET, SET TO, TO DOUBLE.
UM, SO AGAIN, WE ARE, YOU KNOW, ACTIVELY MAKING SURE THAT WE DO THE PROJECTS NECESSARY TO MEET GROWTH.
UM, AND WE'RE HAPPY THAT A COUPLE OF 'EM ARE ACTUALLY ABOUT TO START FINISHING.
AGAIN, THE, YOU KNOW, AGAIN, ONE OF THE THINGS THAT WE'RE REALLY EXCITED ABOUT THE NEW INTERNATIONAL TERMINAL, UM, WITH THAT, OUR, OUR D WEST PIER IS SET TO OPEN LATER THIS SUMMER, SO THAT'LL BE SIX INTERNATIONAL WIDEBODY GATES, UH, WHICH CAN BE CONVERTED INTO 10 NARROW BODY GATES.
UM, A NEW INTERNATIONAL PROCESSOR, UM, WHICH IS COMING IN A TWO PHASE, UH, OPENING, UH, LATER THIS WINTER FOR ONE PHASE, AND THEN LATER NEXT SUMMER FOR THE SECOND PHASE.
KEY THING ABOUT THAT IS, IS THAT THAT WILL PROVIDE THE NEW CURBS THAT WE NEED TO HELP REDUCE A LOT OF THE TRAFFIC CHALLENGES THAT THE AIRPORT HAS.
UH, BETWEEN THE UPSTAIRS AND THE DOWNSTAIRS, WE'RE GONNA BE RE ADDING 19 NEW LANE, UH, 19 NEW CURBS TO BE ABLE TO HANDLE TRAFFIC.
ADDITIONALLY, THAT WILL ALLOW US TO STOP USING THAT TERMINAL E ARRIVALS CURB THAT, YOU KNOW, TEMPORARY CURB THAT IS, YOU KNOW, NOT THE BEST CUSTOMER EXPERIENCE.
UM, SO WE'RE VERY EXCITED TO BE ABLE TO OPEN THAT AS, AS SOON AS I CAN GET THAT OPEN, I'LL BE A HAPPY MAN.
UM, AND THEN WE'VE ALSO, AGAIN GOT THAT, UM, UH, TERMINAL BEAD REDEVELOPMENT THAT'S KICKING OFF.
SO FROM UNITED AIRLINES PERSPECTIVE, IT'S A $2.5 BILLION INVESTMENT IN THE AIRPORT.
UM, AND THAT'S GONNA, AGAIN, GIVE US 22 WIDE BO I'M SORRY, NARROW BODY GATES ON THE NORTH TO REPLACE THE OLD FLIGHT STATIONS.
AGAIN, THE LARGEST UNITED CLUB IN THE WORLD WILL BE BUILT THERE.
UM, A LOT OF NEW CURB SPACE ALSO WILL BE ADDED TO THAT NEW FACILITY TO BE ABLE TO HANDLE THE TRAFFIC.
AND THEN IT DID AN ADDITIONAL, UM, SECURITY CHECKPOINT PLANES.
THE CENTRAL UTILITY PLANT UPGRADE PROJECT IS COMING FORWARD NOW.
SO THAT WILL, WILL ALLOW US TO REPLACE SOME OF THE AGED EQUIPMENT IN THIS CENTRAL UTILITY PLANT.
AND THEN WE'VE GOT A WEST CONCOURSE EXPANSION AT HOBBY.
UM, SO WITH HOBBY, THAT'LL GET US SEVEN ADDITIONAL GATES.
SIX OF 'EM WILL BE DEDICATED FOR SOUTHWEST AIRLINES, AND THEN ONE GATE WILL BE DEDICATED FOR THE AIRPORT TO, TO SHOP TO, UH, OTHER AIRLINES.
SO, AGAIN, GOT MAJOR EXPANSIONS HAPPENING AT, AT ALL AIRPORTS TO BE ABLE TO, YOU KNOW, KIND OF DEAL WITH THE GROWTH THAT'S COMING AT US.
AS WE LOOK AT THE REVENUE HIGHLIGHTS, AGAIN, WE DID SAY THAT WE ARE GROWING, SO FROM A GROWTH PERSPECTIVE, THAT'S GOOD FOR REVENUES, AND THEN OBVIOUSLY OUR EXPENSES WILL GROW.
UM, RIGHT NOW OUR REVENUE FOR FISCAL YEAR 25, WE'RE PROJECTING TO BE AT $697 MILLION, OR ABOUT 12% OVER, UM, THIS YEAR'S ESTIMATE, UH, THAT'S PRIMARILY GONNA BE DRIVEN BY INCREASES AS AN AIRLINE LANDING FEES AND TERMINAL RENTS.
UH, FROM A TERMINAL RENTS PERSPECTIVE, WE GOTTA REMEMBER THAT WE'LL HAVE OUR BASE RENT LEVEL, AND THEN NOW WE'LL BE ADDING THE I TRIPP INFRASTRUCTURE AS IT COMES ON TO THE RENT ROLL.
UM, SO WE CAN START, UM, CHARGING FOR THAT.
UM, ADDITIONALLY WITH THE, THE LARGER VOLUMES THAT WE'LL SEE AT THE AIRPORT, UH, WE WILL SEE AN INCREASE IN OUR PARKING REVENUE, UM, JUST FROM A VOLUME PERSPECTIVE, THEN ALSO WITH THE OPENING OF THE TWO NEW DECKS.
AND THEN WE ANTICIPATE WE'LL HAVE ADDITIONAL GROUND TRANSPORTATION AND RETAIL REVENUE, UH, BASED ON CONCESSION SALES AND TNCS.
AND THEN ALSO ADDITIONAL, UH, RENTAL CAR REVENUE FROM, UH, THE RENTAL, UM, CONCESSION THAT WE HAVE AT THE AIRPORT.
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AGAIN, HERE'S MORE OF A GRAPHICAL BREAKDOWN OF, UH, OR TABLE BREAKDOWN OF WHAT WE'RE GONNA SEE FROM A, UM, REVENUE INCREASE.SO AGAIN, THE, THE AIRLINE LANDING FEES, UH, YOU KNOW, AGAIN, WE ANTICIPATE A 19% INCREASE IN THERE AND A 20% INCREASE, 21% INCREASE IN OUR TERMINAL RENT RENTAL RATES.
UH, AND THEN YOU CAN SEE THE OTHER, UM, INCREASES THERE THAT TOTAL UP AT $697 MILLION THAT WE ANTICIPATE.
AGAIN, THIS IS JUST A KIND OF A REP REPRESENTATION OF WHERE OUR REVENUE HAS HAS GONE IN THE LAST COUPLE YEARS.
SO IF WE LOOK AT OUR, OUR, YOU KNOW, UM, WE WERE AT 595 MILLION, UH, AGAIN, WE'RE UP TO, AGAIN, 960, OR SORRY, 697 MILLION.
AND AGAIN, THAT'S, YOU KNOW, AGAIN, DRIVEN ON VOLUME.
UM, AND THEN AGAIN, THE OPENING OF ADDITIONAL, UH, SQUARE FOOTAGE THAT WE CAN CHARGE FOR.
UM, FROM AN EXPENDITURE STANDPOINT, UH, WE AGAIN WILL SEE AN INCREASE IN EXPENDITURES.
OUR O AND M EXPENDITURES, UH, ARE BUDGETED TO BE ABOUT 393 MILLION.
SO THAT'S AN INCREASE OF ABOUT 10%.
SO WITH THE ADDITIONAL FLIGHTS AND NET PASSENGERS THAT WE'RE GONNA HAVE, WE HAVE TO BUY MORE TOILET PAPER AND, AND, AND ALL THAT KIND OF FUN STUFF.
SO, UM, YOU KNOW, WITH THE, WHEN THE, WHEN THE PASSENGERS INCREASE THE REP, UH, THE EXPENSES INCREASE, UH, FROM A PERSONNEL BUDGET, UH, INCREASE, WE'RE ANTICIPATING A 6.9 OR $6.8 MILLION INCREASE.
UM, AND THAT'S, AGAIN, GIVEN TO SOME ADDITIONAL RUN RATE AND FTES THAT WE'RE ADDING FOR I TRIPP STAFFING AND, AND, AND TO BE ABLE TO HANDLE SOME ADDITIONAL TRAFFIC AT THE AIRPORT.
OUR, UH, SUPPLIES AND NON-CAPITAL EQUIPMENT ARE BUDGETED TO IN GO UP BY 1.2 MILLION, AND OUR CONTRACTED SERVICES ARE BUDGETED TO INCREASE BY 26 MILLION, AND THAT'S PRI PRIMARILY DRIVEN BY MAINTENANCE FOR THE NEW D UM, PIER AND THE ICP AS THEY OPEN, WE HAVE ADDITIONAL, UH, O AND M EXPENSES ASSOCIATED WITH THE MAINTAINING THOSE NEW FACILITIES.
UM, ADDITIONALLY, UH, HAS PAYS $126 MILLION TO THE GENERAL FUND.
UH, AND THAT IS GENERALLY FOR OUR SHARED SERVICES OF, OF POLICE, UM, AIRCRAFT FIREFIGHTING AND RESCUE, SO OUR FIRE, FIRE OFFICERS, UM, UTILITIES THAT WE USE, AND THEN THE PROPERTY INSURANCE THAT WE SHARE FROM A CITY PERSPECTIVE.
UH, AGAIN, THIS IS JUST, AGAIN, A TABLE VIEW OF, OF A LOT OF THE DATA THAT'S IN THERE, UM, SHOWING OUR PERSONNEL INCREASES IN OUR SUPPLIES, UM, AND CONTRACTED SERVICES IN THERE.
UM, AGAIN, WE ALSO HAVE, FROM A DEBT SERVICE PERSPECTIVE AND OTHER USES, WE HAVE, UM, YOU KNOW, A DEBT SERVICE THAT WE NEED TO PAY, UH, FOR THE, THE, UM, THE FACILITIES THAT WE, WE'VE BONDED OUT AND WILL BOND OUT IN THE FUTURE.
UH, OUR CAPITAL EQUIPMENT, UH, SPENDING IS GENERALLY VEHICLES AND COMPUTERS AND SOFTWARE.
SO, UM, THE AIRPORT FLEET, WE CONTINUALLY HAVE TO RENEW IT.
UM, YOU KNOW, AGAIN, OUR FLEET, UH, A LOT OF THE THINGS THAT WE HAVE TO MAKE SURE THAT WE RENEW IS THE UNDERSTANDING THAT OUR EQUIPMENT CAN SOMETIMES WORK THREE SHIFTS A DAY, UM, 24 HOURS.
IF YOU THINK ABOUT OUR LAWNMOWERS AND TRACTORS, UM, YOU KNOW, THOSE ARE THE THINGS THAT WE USE ON A REGULAR BASIS, UM, TO MAINTAIN THE FACILITIES.
AND SO WE, YOU KNOW, 'CAUSE WE HAVE A, A 24 HOUR A DAY, SEVEN DAY A WEEK OPERATION, THEY GET, THEY GET USED PRETTY, PRETTY MUCH, UH, ALL THE TIME.
UH, AGAIN, THIS IS GRAPHICALLY JUST SHOWING A REPRESENTATION OF WHERE OUR, OUR EXPENSES HAVE BEEN, UM, AND WHERE WE ANTICIPATE, AGAIN, OUR, OUR, UH, 80, UM, 80 12, UH, FUNDING TO BE, YOU KNOW, AGAIN, WE'VE GOT SOME VARIATION IN OUR 80 12, AND THAT'S DUE TO SUPPLY CHAIN ISSUES.
SO SOMETIMES WE BUDGET FOR A WHOLE BUNCH OF VEHICLES AND THEN THE SUPPLY CHAIN DOES NOT, YOU KNOW, DELIVER THEM.
AND SO WE'VE ALWAYS GOT SOME VARIABILITY THAT KIND OF FLOATS AROUND IN THERE, JUST ON, ON, AGAIN, THAT SUPPLY CHAIN ISSUES.
SO AGAIN, HERE'S FROM AN EXPENSES PERSPECTIVE, OUR PERSONNEL VERSUS NON PERSONNEL, UM, UH, EXPENSES.
IF YOU LOOK AT OUR M AND O, UH, AGAIN, YOU'RE LOOKING AT PERSONNEL, UH, BEING ABOUT 37% OF OUR, OUR OUR EXPENSES, UM, AND NON PERSONNEL BEING ABOUT 63%.
AND SO THAT KIND OF, YOU KNOW, COMPLETES MY PRESENTATION, SO I'M MORE THAN WELCOME TO TAKE ANY QUESTIONS.
YOU'VE GOT ANY QUESTIONS? NOBODY IN THE QUEUE, BUT, BUT I HAVE SOME
AND MR. STEVENS FOR, FOR YOUR PRESENTATION ON PAGE 11.
UM, YOU TALK ABOUT THE REVENUES, YOU'VE GOT GROUND TRANSPORTATION AND RETAIL CONCESSIONS LUMPED TOGETHER.
I, I DID LOOK INTO THE LINE ITEM DATA OF THE BUDGET AND SEE THAT, SEE SAW THE BREAKDOWN BETWEEN THE TWO.
LOOKS LIKE WE'RE UP 5 MILLION IN RETAIL CONCESSIONS AT BUSH THIS COMING YEAR, AND WE'LL BE DOWN ABOUT 1,000,004 AT HOBBY ACCORDING TO THE, TO THE DATA I'M SEEING, AND I KNOW WE'RE IN A TRANSITION PERIOD HO AT HOBBY.
I APPRECIATE YOUR STAFF GETTING ME, UH, THE, THE INFORMATION ON THE CONCESSIONS.
UM, UM, I'VE BEEN VERY VOCAL ABOUT, ABOUT, UM,
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DISPLEASURE AT THE TRANSITION.UM, I HAVE NOTICED THAT WE ARE DOWN, UM, AND I KNOW THAT THESE ARE NOT THEIR, THE BRANDS THAT ARE STAYING, BUT IN THE RECENT AREAS, CONTRACT WE'RE DOWN 28% WHERE PAPA DO'S WAS.
UM, IF YOU COMPARE THIS, APRIL'S REVENUES TO LAST APRIL'S REVENUES WERE DOWN, LET'S SEE, OH GOD, 47%, UM, AT THE GASTRO HUB IN THE PRE-SECURITY AREA AT HOBBY, UM, THIS APRIL COMPARED TO LAST APRIL, UM, WHEN PAPA'S BARBECUE WAS THERE.
AND YOU'VE GOT, YOU'RE DOWN 60% ON THE WEST CONCOURSE NOW.
I KNOW THAT'S CHANGING BECAUSE YOU'VE GOT THE SPOT THERE NOW, RIGHT? AND THAT'S WHERE THE PAPA CTO'S CANTINA WAS.
AND NOW YOU'VE GOT THE SPOT THERE.
SO, UM, YOU KNOW, WE'LL BE WATCHING THESE.
WE, WE UNDERSTAND THE CONTRACT'S DONE.
WE'LL BE WATCHING THESE REVENUES AS, AS THEY THEY SHIFT.
I WOULD LIKE YOU TO GIVE ME A LITTLE BIT, UM, BETTER UNDERSTANDING.
YOU'VE, AND I'LL PUT THIS IN WRITING TOO, AND YOU'VE, YOU'VE WRITTEN BACK TO ME SOME OF IT.
UM, ARE WE LOOKING AT TRANSITION PERIODS AT HOBBY FOR THESE BRANDS? UM, FOR THE, FIRST OF ALL, IF YOU CAN SPEAK TO WHAT BRANDS ARE GOING IN THOSE SPACES AND, AND THE TIMEFRAME WHEN THEY'LL BE IN YEAH.
SO WE CAN, UM, SO, SO JUST TO GIVE YOU A LITTLE BIT OF HIGHLIGHTS ON THAT, SO WE DID LOOK AT SOME OF THE DATA ON, ON THAT.
SO IF WE LOOK AT THE NEW, SO AGAIN, WE HAVE A COMBINATION OF NEW, NEW AND OLD STORES.
AND SO IF WE LOOK AT, WE'VE JUST RECENTLY OPENED FOUR, THE FOUR OF THE NEW CONCEPTS, RIGHT? AND SO THE FOUR NEW CONCEPTS THAT HAVE OPENED IN THE, IN THE TERMINALS ARE THE SALES FOR THOSE FOUR CONCEPTS ALONE ARE UP 87% VERSUS THE CONCEPTS THAT WERE IN THERE PRIOR.
UM, SO WE'VE BEEN VERY, YOU KNOW, HAPPY WITH THE RESULTS ON THAT.
UM, IF YOU LOOK, YEAH, THE, IT LOOKED LIKE THE LATRELL BRAND WERE, WERE DOING WELL, THE VELVET TACOS DOING WELL, UM, WHERE THE SUBWAY WAS, YOU KNOW, YES.
IT WAS SUBWAY BEFORE, NOW IT'S VE VELVET TACO.
YEAH, I'M ADDICTED TO VELVET TACO NOW.
UM, YEAH, SO WE, AGAIN, WE DID SEE THAT THAT 87% INCREASE WITH THE NEW, NEW STORES THAT WE SHOWED UP THERE, BUT WE DO HAVE A COMBINATION OF OLD STORES IN THERE.
I MEAN, THE, THE TRANSITION STORES IN THERE.
UH, BUT IN GENERAL, OUR SALES ARE UP ABOUT ROUGHLY 5% ON THE, UM, THE, THE TOTAL PACKAGES.
AND THEN AGAIN, YEAR OVER YEAR REVENUE TO THE AIRPORT SYSTEM, UM, IS UP, UH, 29%.
SO $2.5 MILLION VERSUS WHAT WE WOULD, WHAT WE WOULD RECEIVE FROM THE PREVIOUS, UM, UH, CONCESSIONS PROGRAM.
SO AGAIN, FROM AN AIRPORT PERSPECTIVE, I CAN GIVE YOU A BREAKDOWN ON THAT INDIVIDUALLY SO THAT YOU HAVE ACCESS TO IT, UM, FROM A CONCEPTS PERSPECTIVE OF WHAT'S COMING RIGHT NOW.
UM, SO WE'RE TAKE, WE TAKE DOWN FOUR.
AND SO RIGHT NOW WE WE'RE, WE'RE GOING INTO OUR SECOND PHASE OF BUILDING.
UM, I CAN SEND OUT A PACKAGE THAT SHOWS WHEN AND ALL OF, UH, WHICH ONES ARE COMING, BUT I KNOW THE HIGHLIGHTS OF THE NEW ONES THAT ARE COMING RIGHT NOW.
UM, THE ONE THAT I'M EXCITED ABOUT IS THE RUSTICS GONNA GET BUILT INTO THE HOBBY TERMINAL.
UM, SO THAT'S THE ONE THAT I THINK IS THAT I'M, I'M SUPER EXCITED TO SEE THAT WHEN THAT OPENS UP.
AND, AND WHICH SPACE WILL THAT TAKE? UM, IS IT IN THE CENTRAL CONCOURSE? IT'S IN THE CENTRAL CONCOURSE, YEAH.
UM, SO I'M, I'M, I FORGET EXACTLY WHICH LOCATION IT'S GOING INTO, BUT IT'S, IT'S WHY I'M ONE OF THE WINGS OVER THERE, BUT IT IS THE, UM, BUT, BUT, BUT I CAN GIVE YOU A TABLE THAT'S BASICALLY SHOWS THE WHAT'S GOING IN WHICH LOCATION AND WHEN IT'S SUPPOSED TO HAPPEN.
SO WE WILL FORWARD THAT WHERE, WHERE PAPA'S WAS, UH, WHERE PAPA'S WAS, IS GONNA BE THE, UM, IS GONNA BE WHERE A LANDRY SEAFOOD IS GOING.
I THINK THE GOOD NEWS IS THAT WE'VE SEEN SOME ACCELERATION RECENTLY.
UH, WE WERE A LITTLE BIT CAUTIOUS AND CONSERVATIVE WHEN WE BUDGETED, UH, THE TRANSITION PERIOD.
AND THE GOOD NEWS, LIKE I SAID, IS IN MORE RECENT PERIODS WE SEE SOME ACCELERATION.
SO, UH, AS LONG AS THAT TREND CONTINUES, THE, UH, TRANSITION'S GONNA BE, UH, WELL WORTH IT.
AND TIMELINE FOR EVERYTHING TO BE IN.
SO IT'LL BE, IT'S BASICALLY WE'VE GOT LIKE A, A YEAR LEFT, UM, UH, TO BE ABLE TO TRANSITION, UM, ALL THE CONCESSIONS, SO.
I HAVE SOME MORE QUESTIONS, BUT I'LL GO TO COUNCIL MEMBER MARTINEZ.
UH, DIRECTOR, I WANNA DIVE A LITTLE BIT MORE INTO THE SHARED SERVICES.
UH, THE 1 26 0.1 MILLION, UM, THOSE DOLLARS COULD ONLY BE HELD WITHIN THE AIRPORT SYSTEM.
THEIR, THEIR BOUNDARIES OR SOME OF THOSE DOLLARS ACTUALLY GIVEN TO H-P-D-H-F-D THAT ARE SURROUNDING THAT MIGHT BE SUPPORTING SOME OF, SOME OF THE THINGS THAT HAPPEN AT, AT THE AIRPORT.
SO THE AIRPORT SYSTEM HAS TAKEN, UM, FEDERAL GRANTS AND WITH FEDERAL GRANTS COME THE, OUR GRANT ASSURANCES.
AND SO OUR GRANT ASSURANCES PREVENT US FROM DOING WHAT'S CALLED REVENUE DIVERSION.
UM, SO ALL FUNDS THAT ARE SPENT AT THE AIRPORT HAVE TO REMAIN AT THE AIRPORT, SO WE CAN ONLY DEDICATE THOSE FUNDS TO THE POLICE AND FIRE SERVICES THAT ARE PROVIDED TO THE AIRPORT.
SO HAVE THERE BEEN ANY, UH, INSTANCES WHERE OUTSIDE, UH, RESOURCES HAVE COME INTO THE AIRPORT IN, IN THOSE CIRCUMSTANCES, THE MONIES CAN BE APPLIED TO, TO THOSE RESOURCES? SO THERE'S SOME NEAR FIELD, UH, AS YOU'VE MENTIONED, STATIONS, ET CETERA.
[00:25:01]
WE, WHEN THEY COME BACK, IF IT WAS SUPPORT FOR AIRPORT CALLS INTO THE AIRPORT SUPPORT OF THE AIRPORT, CAN YOU SHARE SOME BACKGROUND ON WHEN SOME OF THOSE INSTANCES THAT HAVE HAPPENED JUST TO, YOU KNOW, AS YOU KNOW, WE KEEP TALKING ABOUT THE BUDGET AND HOW WE CAN CONTINUE TO SUPPORT PUBLIC SAFETY.UM, AND IF SOME OF THOSE SERVICES ARE GOING TO THE AIRPORT, YOU'D LIKE, WANNA, WANNA MAKE SURE THAT, UH, WE'RE NOT IMPACTING THOSE NEIGHBORING COMMUNITIES THAT HAVE, YOU KNOW, FIRE STATIONS, SUBSTATIONS AND, AND SUCH.
YEAH, I, I DON'T, WE'D HAVE TO GET BACK TO YOU WITH PROBABLY SPECIFIC EXAMPLES.
I CAN, I CAN TELL YOU THAT, YOU KNOW, FOR INSTANCE, NOW WE SEEK, UH, ADDITIONAL POLICE RE RESOURCES FOR, UH, TRAFFIC MANAGEMENT, ET CETERA.
UH, SO WE'RE AUTHORIZING ADDITIONAL FUNDS TO BE SPENT FOR THOSE.
BUT AGAIN, THAT'S OUT OF THE POOL OF AVAILABLE OFFICERS FOR OVERTIME SUPPORT OF, OF, UH, IEH TRAFFIC.
UM, BUT WE CAN DIG INTO AND GET SOME, UM, MORE SPECIFIC, WE DON'T UTILIZE THOSE OUTSIDE STATIONS AND OFFICERS VERY OFTEN.
IT'S OCCASIONALLY WHEN THERE'S A, YOU KNOW, A TRAFFIC, UH, INCIDENT OR, OR SOMETHING THAT REQUIRES A LITTLE EXTRA SUPPORT.
I, I'D JUST LIKE TO KIND OF DIVE INTO THAT A BIT MORE JUST TO KINDA MAKE SURE THAT YOU KNOW, WHAT, YOU KNOW, SPECIFICALLY IN THE HOBBY AIRPORT AREA, I KNOW THAT THE, YOU KNOW, SOUTHEAST COMMAND, THEY'RE PROBABLY ONE OF THE HIGHEST, UH, CALL CALL VOLUMES MM-HMM
UM, AND SO JUST WHENEVER IT IS, IT IS, UH, AN INSTANCE, I JUST WANNA MAKE SURE THAT WE DO HAVE THOSE RESOURCES CONTINUE TO BE THERE, UH, FOR THOSE COMMUNITIES.
AND JUST WANNA, UH, APPRECIATE, UH, OUR CHAIRWOMAN BRINGING UP THE CONCESSIONS.
I WANTED TO KIND OF GET A, YOU KNOW, SHE DOVE INTO IT A LOT MORE, BUT I WANTED TO GET SOME FEEDBACK AS TO WHAT WAS HAPPENING IN THE HOBBY AIRPORT.
'CAUSE I, I HAVE HEARD JUST ANECDOTALLY, UM, THAT THERE'S, UM, YOU KNOW, FOLKS WEREN'T TOO PLEASED WITH SOME OF THOSE, UH, CONCESSIONS.
AND SO, UH, ANY FEEDBACK THAT YOU HAVE SURVEYS WOULD LIKE TO SHARE.
YEAH, SO, SO WE DO, WE DO OUR OWN INTERNAL SURVEYS, UM, THAT WE, AND WE USE MYSTERY SHOPPERS AND STUFF LIKE THAT.
AND SO THEY'RE, THEY'RE, THEY'RE, YOU KNOW, THEY'RE HITTING OUR INTERNAL NUMBERS AS FAR AS FROM A CUSTOMER SERVICE PERSPECTIVE THAT WE NEED TO DO.
UM, BUT WE CAN PROVIDE YOU A LIST OF BASICALLY WHO'S WHICH, WHICH LOCAL VENDORS ARE GOING IN THERE, WHICH NATIONAL BRANDS ARE GOING IN THERE.
UM, SO YOU CAN TAKE A LOOK AT IT.
COUNCIL MEMBER FLICKINGER, DO WE GET THE REPORT ON THE MYSTERY SHOPPERS? IS THAT ALREADY SENT OUT TO US OR? I, I, I WOULDN'T THINK THAT WOULD BE SOMETHING NOR NATURALLY THAT MAY BE SENT OUT TO YOU, BUT WE DO HAVE IT.
IF I GET A COPY OF THAT, I'D BE APPRECIATE IT.
ARI WITH, UM, COUNCIL MEMBER CAYMAN'S OFFICE.
THANK YOU SO MUCH FOR THE PRESENTATION.
UM, I DO HAVE A QUICK QUESTION RELATED TO PARKING.
UM, OUR OFFICE WAS MADE AWARE THAT DURING CONSTRUCTION CONTRACT EMPLOYEES FOR THE AIRPORT, INCLUDING JANITORIAL STAFF, UM, HAD BEEN PAYING FOR PARKING OUT OF POCKET, SOMETIMES UP TO $20 DAILY.
UM, THEY'RE ALSO HAVING TO GET THERE AN HOUR EARLY DUE TO THE PARK AND RIDE SHUTTLES BEING CONSISTENT.
UM, WHAT CAN WE DO TO MAKE SURE THAT THE STAFF HAS ACCESS TO PARKING? I DO KNOW THAT YOU MENTIONED WE HAVE ADDITIONAL PARKING AT BUSH.
IS THAT, DOES THAT INCLUDE PARKING FOR STAFF AS WELL? YEAH, SO WE'VE GOT TWO THINGS THAT ARE GOING ON RIGHT NOW.
SO THE, UM, THE, THE, THE EXISTING, UM, UNITED AIRLINES, UH, CONSTRUCTION TOOK OUT ONE OF THE PARK THE SURFACE PARKING LOTS THAT ARE IN THE CORE OF THE AIRPORT.
AND SO WITH THAT, WE HAD TO REMOVE THE EMPLOYEES THAT WERE PARKED IN THAT, UH, TO AN OUTSIDE LOT, UM, WHICH IS OUT WHERE THE EXISTING ECO PARK IS OFF OF JFK.
AND SO THAT, THAT, THAT MOVED SOME OF THE FOLKS OUT OF THAT LOCATION.
UM, WITH THAT THOUGH, WE DID PROVIDE A BUS SERVICE, UH, AND THAT, AGAIN, WE DO HAVE SUFFICIENT BUSES THAT THE GOAL ULTIMATELY IS, IS THAT A 10 MINUTE HEADWAY, UM, FOR, FOR TRAVELERS, I'M SORRY, FOR EMPLOYEES, SO THAT THEY SHOULD NOT HAVE TO WAIT MORE THAN 10 MINUTES, UH, BETWEEN BUSES ON THAT.
UM, OBVIOUSLY SOMETIMES THE TRAFFIC AT THE AIRPORT CAN, CAN SLOW THAT DOWN, BUT, YOU KNOW, WE TRY AND MAKE SURE THAT THE SHIFTS DON'T, THEY, THE SHIFTS USUALLY DON'T HIT WHEN WE HAVE TRAFFIC BECAUSE OBVIOUSLY THE EMPLOYEES GET THERE BEFORE THE, THE CRUSH OF PASSENGERS DO.
UH, AGAIN, FROM A PAYING PERSPECTIVE IN GENERAL, UM, WE'D HAVE TO TAKE A LOOK AT AT THAT.
BUT GENERALLY THE, WE DON'T INDIVIDUALLY CHARGE THE EMPLOYEES FOR PARKING.
IT'S, IT'S THE CORPORATIONS THAT PAY THE PARKING FEES FOR THE EMPLOYEES.
JOHN MOSS WITH COUNCIL MEMBER RAMIREZ.
THANK YOU FOR YOUR PRESENTATION.
ON THE SLIDE 11, WHICH IS UP ON THE SCREEN RIGHT NOW, THE TOP TWO, UM, ROWS, THE LANDING FEES.
AND THE USAGE FEES ARE THOSE GOV THE LANDING FEES, ARE THEY GOVERNED BY FEDERAL REGULATION ON WHAT YOU CAN OR CANNOT CHARGE OR MAXIMUM? SO IT'S GOVERNED BY OUR USE AGREEMENT THAT WE HAVE WITH THE AIRLINES.
AND SO FOR OUR AIRFIELD IS WHAT WE CONSIDER CALLED, UH, IT'S FULLY RESIDUAL.
SO BASICALLY IF IT COSTS US A HUNDRED DOLLARS TO, TO RUN THE AIRFIELD, WE TAKE THE A HUNDRED DOLLARS AND WE DIVIDE IT BY OUR LANDING FEES, AND THAT'S WHAT THE AIRLINES PAY.
UM, SO IT'S BA IT'S, IT'S TRULY A FROM AN AIRLINE, LIKE A COST OF SERVICE.
IT'S, IT'S JUST THE COST OF SERVICE THAT IS TO, TO RUN FIELD.
[00:30:01]
REGULATION OR A CITY OR IS THAT JUST THE WAY NO, SO THAT'S GONNA BE, IT'S OUR USE IN LEASE AGREEMENT DEBT.SO IT'S OUR LEASE THAT WE HAVE, WHAT THE AIRLINES GOVERNS AT RIGHT NOW.
IT THAT'S A VERY COMMON STRUCTURE.
THE RE THE FULL RESIDUAL FOR THE AIRFIELD.
SO ALL THE COSTS FOR, YOU KNOW, FOR INSTANCE, TAXIWAYS AND, AND RUNWAY MAINTENANCE AND, AND THOSE TYPE OF THINGS FALL INTO THE AIR, UH, AIRFIELD COST CENTER.
AND AS JIM SAID, WE, WE TAKE THOSE TOTAL COST AND THEN WE TAKE THE TOTAL, IT'S ACTUALLY THE WEIGHT OF THE PLANES LANDED OVER THE COURSE OF THE YEAR AND JUST DIVIDE IT.
UM, THE TICKET TAX, I THINK IT'S $4 AND 50 CENTS.
WHAT PFC WHAT WOULD THAT FALL UNDER ON YOUR SLIDE HERE? SO THE, THE PFCS AREN'T INCLUDED IN IN REVENUE.
THAT'S A, THAT'S A SEPARATE ITEM.
IT, IT, IT'LL SHOW WHERE IT'LL SHOW UP IN OUR ACT FOR IS, UH, TYPICALLY THERE'S TWO, TWO P TWO WAYS THAT WE USE PFCS.
ONE IS TO OFFSET DEBT, AND SO YOU'LL SEE IT OUTTA THE $163 MILLION IN DEBT SERVICE THAT WE HAVE.
PROBABLY SOMETHING APPROACHING HALF OF THAT WILL BE PAID VIA PFCS, AND THEN WE'LL USE SOME OF THE PFCS AS PAY AS YOU GO.
SO WE'LL HAVE PROJECTS, ALL THE PROJECTS HAVE TO BE PRE-APPROVED BY THE FAA, WE HAVE TO DO AN APPLICATION FOR THE FAA, AND THEY HAVE, THERE'S PRETTY STRICT CRITERIA THAT WE HAVE TO MEET FOR A PROJECT TO BE APPLICABLE TO THE PFC PROGRAM.
AND THEN WE CAN USE A PAY AS YOU GO.
FOR INSTANCE, WE'VE APPLIED RECENTLY FOR THE SEVEN GATE EXPANSION AT HOBBY TO INCLUDE THE BAGGAGE SYSTEM AS PFC ELIGIBLE BECAUSE THE BAGGAGE SYSTEM IS USED BY ALL AIRLINES, NOT JUST SOUTHWEST WEST AIRLINES.
SO WE'VE DONE AN APPLICATION AND WE THINK IT'LL BE APPROVED SOON THAT WE CAN SPEND UP TO $79.9 MILLION ON THE BAGGAGE SYSTEM WITH PFC FUNDS.
SO PFCS BASICALLY COVER CAPITAL EXPENSES, CORRECT? YES.
THAT'S THEIR PRIMARY, THEIR PRIMARY PURPOSE.
QUESTION, UH, HAVE WE MADE ANY ADDITIONAL, UM, CHANGES REGARDING THE SECURITY ISSUES THAT WE'VE HAD PREVIOUS WITH CARS, YOU KNOW, UH, THE THEFTS IN BREAKING IN CARS INSIDE THE GARAGES? HAVE THERE BEEN SOME SIGNIFICANT CHANGES IN THAT REGARD? YES.
SO A COUPLE THINGS HAVE HAPPENED ON THAT, AND OBVIOUSLY FROM A, FROM AN HPD PERSPECTIVE, WE WORK WITH HPD, THAT THAT DOES, UM, A LOT OF THE INVESTIGATIONS ON THAT.
AND SO THEY'VE, THEY'VE, UM, WE, WHAT WE TEND TO HAVE IS, IS THAT THERE'LL BE A RING, UM, THE RING COMES IN, WE CATCH 'EM ON VIDEO, WE GO AND ARREST 'EM, THEN IT GOES AWAY, AND THEN ANOTHER RING WILL SHOW UP, AND THEN WE CATCH 'EM ON VIDEO AND WE ARREST THEM AND, AND, AND, YOU KNOW, THOSE, THOSE, THAT'S KIND OF HOW THE EBB AND, AND FLOW GOES.
UM, BUT WE HAVE ADDED ADDITIONAL CAMERAS THROUGHOUT BOTH HOBBY AND BUSH GOOD TO MAKE SURE THAT WE CAN FIND THE LOCATIONS.
UM, YOU KNOW, AND PARTICULARLY WE, YOU KNOW, WE'VE GOT A, A FIXED CAMERA NETWORK THAT WAS, UM, YOU KNOW, THAT'S THERE.
UH, BUT WE'VE BEEN SUPPLEMENTING IT LATELY WITH THE NEW TECHNOLOGY THAT ALLOWS YOUR, YOU KNOW, KIND OF RING DOORBELL, CAMERA E KIND OF, UH, UM, YOU KNOW, INFRASTRUCTURE AND THEN SOME PORTABLE STUFF THAT WE'VE DONE.
SO IF WE'VE GOT AN AREA WHERE WE SUSPECT THAT SOMEBODY IS COMING INTO THE GARAGE, UM, TO BE ABLE TO, TO DO BAD THINGS, UM, WE CAN PUT SOME OF THESE MOBILE CAMERAS OUT THERE TO BE ABLE TO TRY AND TRACK THEM, UH, WITHOUT HAVING TO DO THE, THE, THE TIME CONSUMING AND EXPENSIVE, YOU KNOW YEAH.
SO WE'RE, WE'RE ACTIVELY MAKING SURE THAT WE, WE, WE, WE COVER THOSE THINGS.
WE, WE'VE APPROPRIATED, UH, IN THE NEIGHBORHOOD OF $4 MILLION FOR SUPPLEMENTS TO THE CAMERA SYSTEM.
AND IT'S, IT'S FOR SEVERAL PURPOSES, INCLUDING TRAFFIC MANAGEMENT, BUT CERTAINLY A, A BIG COMPONENT OF THAT IS THE SECURITY COMPONENT THAT YOU'RE REFERRING TO.
BECAUSE THAT, THAT CERTAINLY WOULD HINDER, YOU KNOW, WE DON'T WANT ANYTHING TO HINDER THE AGGRESSION OF PROFITS AND PEOPLE GOING TO AIRPORT FEELING SAFE ABOUT THEIR CARS.
WE, AND AGAIN, WE, WE, AND WE DO MONITOR IT, SO WE KNOW THAT RIGHT NOW FOR, FOR FOLKS THAT PARK AT THE AIRPORT ON OUR FACILITIES, UM, THEIR, THEIR CARS, THERE'S A 99.999, I THINK THERE'S THREE NINES IN THERE, PERCENT CHANCE THAT THEIR VEHICLE WILL BE FINE.
UM, SO, YOU KNOW, THE, THE AMOUNT OF ACTIVITY THAT HAPPENS AT THE AIRPORT IS VERY SMALL.
UH, BUT TENDS SEND TENDS TO BE SOMEWHAT ONE OF THOSE THINGS THAT WE DO GET SOME, SOME TRAFFIC ON WHEN, WHEN, WHEN THINGS HAPPEN.
BUT AGAIN, WE, WE, WE, WE PUT A, WE WORK REALLY HAND IN HAND WITH OUR PARKING OPERATOR AND WITH HPD TO MAKE SURE THAT WE KEEP THAT TO THE 0.999 LEVEL.
UM, ON PAGE 26, YOU GUYS DID YOUR PRESENTATION A LITTLE BIT DIFFERENT.
YOU PUT YOUR, THE PERFORMANCE MEASURES WEREN'T REALLY PART OF YOUR PRESENTATION, BUT YOU PUT 'EM AT THE END, WHICH, WHICH IS FINE.
UM, IS THIS KIND OF STANDARD FOR LARGE AIRPORTS, ARE, ARE, ARE THOSE PRETTY IN LINE WITH, UH, OUR, OUR COST PER PASSENGER AND GIVEN, GIVEN OUR CURRENT STATE, WE'RE ACTUALLY ON THE LOW END OKAY.
OF COST PER PASSENGER RIGHT NOW, AS WE, WHAT ABOUT REVENUE PER PASSENGER? W WE'RE RIGHT IN THE MIDDLE A LITTLE.
MAYBE A LITTLE BIT ABOVE, ABOVE AVERAGE ON REVENUE
[00:35:01]
PER PASSENGER.UM, THE, AS WE BUILD MORE INFRASTRUCTURE, YOU'RE GONNA SEE OUR COST PER PASSENGER START TO INCREASE.
AND EVERY OTHER AIRPORT THAT'S DOING SIMILAR PROJECTS ON SIMILAR SCALE, YOU'LL SEE THERE.
SO WE THINK OUR RELATIVE BASIS IS GONNA STAY ABOUT THE SAME, THAT WE'LL BE ONE OF THE MORE ECONOMICAL OR, OR ECONOMICALLY FRIENDLY OR ATTRACTIVE, UH, AIRPORT SYSTEMS, BOTH AIRPORTS.
UM, AND THIS IS JUST O AND M, THIS ISN'T CAPITAL COSTS IN HERE, THESE ARE JUST O AND M COSTS PER, PER PASSENGER, CORRECT.
UM, WHY, I GUESS BECAUSE THERE'S FEWER TRAVELERS, IS THAT WHY THE COST IS, UM, WAIT, THIS IS THE COST HIGHER OR LOWER AT, AT HOBBY? I CAN'T REMEMBER.
IT'S RIGHT THERE IN FRONT OF ME.
WHY IS O AND M FOR HOBBY HIGHER THAN I A, UH, IT JUST, IT'S JUST REALLY, IT'S, IT'S JUST THE, THE PASSENGER BIG.
I JUST FEEL LIKE I A BIG, THE PASSENGER BIG IF, IF YOU REMEMBER, HOBBY HAS HASN'T RECOVERED AS VIGOROUSLY YEAH.
FROM COVID, ET CETERA, ON THEIR PASSENGER COUNTS.
THEY'RE JUST NOW COMING IN LINE WITH KIND OF THE TWO, UH, 20, UH, 19 NUMBERS.
UM, SO AS THEY GROW, AS WE DO THAT EXPANSION AND GET MORE PASSENGERS, INCREASE THE DENOMINATOR, YOU'LL SEE THAT COST GO DOWN.
AND WE REALLY DIDN'T TALK MUCH ABOUT THE SPACEPORT, UM, BUT UM, I KNOW DIRECTOR, WE'VE BEEN TRYING TO GET TOGETHER, I THINK WE ARE GETTING TOGETHER ON THE TAL STUFF.
SO CAN YOU TALK A LITTLE BIT ABOUT PLANS FOR, UM, UH, VERTICAL TAKEOFF AND LANDING? YEAH.
SO, SO FROM A HOUSTON PERSPECTIVE, THE, THE THING IS THE, THE, THESE THINGS ARE COMING, RIGHT? SO THESE, SO AGAIN, FOR THOSE DON'T UNDERSTAND, SO EVALS ARE THESE ELECTRIC HELICOPTERS THAT ARE SUPPOSED TO COMPETE WITH UBER BLACK KIND OF SERVICE.
AND SO WITH THEM, UM, THEY'RE COMING, THERE'S, THERE'S SIGN A SIGNIFICANT AMOUNT OF VENTURE CAPITAL THAT'S BEHIND THEM.
UM, AND SO WE'RE NOT EXACTLY SURE, YOU KNOW, HOW, HOW IT'S GONNA ROLL OUT.
WE THINK THAT THEY'LL PROBABLY BE IN THE MARKET ROUGHLY 20, 28 ISH.
UM, THE, THE MANUFACTURERS ARE SAYING 2026, THE FAA SAYING 2028.
SO I'M KIND OF GONNA LEAN WITH THE FAA ON THAT ONE, BUT THEY WILL COME TO THE HOUSTON MARKET.
WHAT WE ANTICIPATE THEM DOING IN THE, IN THE BEGINNING IS MOVING PASSENGERS BETWEEN, UH, PARTS OF THE, THE CITY AND THE AIRPORTS GENERALLY.
SO BACK IN THE OLDEN DAYS AT CONTINENTAL, THEY USED TO HAVE THE, UH, SMALL PLANE THAT USED TO, TO TAKE YOU, FLY YOU FROM ELLINGTON, UH, UP TO BUSH.
UM, SO WE WOULD ANTICIPATE ONE OF OUR FIRST MARKETS WOULD BE FLYING FROM ELLINGTON TO BUSH.
ON THESE EVALS, AGAIN, THEY SEAT ROUGHLY FOUR PASSENGERS WITH A PILOT.
UM, ONE OF THE MANUFACTURERS IS GOING FULLY AUTONOMOUS, SO THEY WOULD'VE NO PILOT, IT WOULD JUST BE FOUR PASSENGERS.
UH, BUT THEY WOULD FLY YOU FROM THAT LOCATION, UM, TO BUSH, AND THEN FROM BUSH YOU WOULD CATCH YOUR, YOUR BIG PLANE.
UH, WE WOULD ALSO ANTICIPATE THAT SERVICE IS GONNA HAPPEN PROBABLY FROM HOBBY TO BUSH, AND THEN ALSO FROM, UM, SUGARLAND AIRPORT.
AND THEN HOUSTON EXECUTIVE AIRPORT, UM, IS WHERE THAT KIND OF INITIAL SERVICE WOULD START.
ULTIMATELY, AT SOME POINT IT WILL PROBABLY ROLL OUT WITHIN THE CITY.
AND SO WE'LL PROBABLY SEE, UM, THE GALLERIA, THE MEDICAL DISTRICT, UH, DOWNTOWN CONVENTION CENTER AREA, THOSE AREAS WHERE YOU'LL SEE THESE FLIGHTS WANTING TO GO AGAIN, THAT THEY'RE, THEY'RE, THEY'RE, THEY'RE SUPPOSED TO BE COMPETING WITH THE UBER BLOCK SERVICE.
UM, FROM AN AIRLINE PERSPECTIVE, UNITED AIRLINES HAS BOUGHT, UM, A, A A ARCHER VARIETY OF THESE.
SO WHAT I WOULD ANTICIPATE IN THE FUTURE IS, IS THAT INSTEAD OF YOU'RE BUYING YOUR TICKET FROM, UM, YOU KNOW, BUSH TO O'HARE TO, TO DO SOMETHING IN CHICAGO, YOU WOULD ACTUALLY BUY A TICKET FROM THE SUGARLAND AIRPORT OR THE, LET'S JUST CALL IT THE MED DISTRICT.
SO YOU WOULD BUY A TICKET FROM THE MED DISTRICT TO THE MEDICAL DISTRICT IN CHICAGO.
AND THAT WOULD BE BASICALLY, YOU KNOW, THE EAL TO BUSH, JUMP ON THE BIG PLANE, FLY TO O'HARE, GET OFF THE BIG PLANE, AND TAKE THE EVAL DOWN TO THE MED DISTRICT IN CHICAGO.
UM, SO, SO THAT IS COMING, UH, FROM A COUNCIL PERSPECTIVE.
UM, YOU KNOW, WE WILL PROBABLY DO A LITTLE MORE OF AN EDUCATIONAL SESSION WITH EVERYBODY ONCE WE GET A LITTLE MORE CLARITY ON THIS, UH, BECAUSE YOU WILL HAVE IMPACTS OF PEOPLE WANTING TO BUILD POTENTIAL VERTI PORTS IN YOUR NEIGHBORHOODS.
UH, AND THEN THERE MAY BE SOME, UM, SOUND, YOU KNOW, CONCERNS ON THAT.
SO AGAIN, THE, THE, THE, THE, THE INDUSTRY INFORMATION IS THESE ARE MUCH QUIETER THAN HELICOPTERS.
SO IT'S NOT A HELICOPTER LIKE OPERATION.
UM, BUT IT IS SOMETHING THAT WE ALWAYS HAVE TO BE COGNIZANT OF.
'CAUSE IT IS, UH, FROM A NEIGHBORHOOD'S PERSPECTIVE, YOU KNOW, WHERE THESE THINGS COULD POTENTIALLY GET LOCATED, COULD, COULD BECOME CONTENTIOUS.
THAT'S REALLY EXCITING AND LOOK FORWARD TO HEARING MORE ABOUT THAT.
UM, UM, WE'LL JUST THANK YOU VERY MUCH FOR THE PRESENTATION.
I DO WANNA SAY THAT IT, AND IT'S NOT JUST ME, YOU KNOW, MISSING MY TACOS AT HOBBY
WE GET A LOT OF QUESTIONS AROUND THE HORSESHOE ABOUT WHAT'S GOING ON, WHAT'S HAPPENING.
SO TO THE EXTENT YOU CAN REALLY LAY OUT THE TIMELINE AND WHAT'S WHAT'S COMING, UM, I THINK WE'D ALL APPRECIATE THAT.
UM, AND, UH, BUT I LOVE THE AIRPORTS.
[00:40:01]
AND, UH, THANK YOU FOR ALL A THOROUGH PRESENTATION.AND WE JUST HAVE ONE PUBLIC SPEAKER WHO IS, BUT NOT ALL, WE DO HAVE ONE PUBLIC SPEAKER, BUT THEY'RE VIRTUAL AND WE HAVE SEEN THAT THEY HAVE LEFT.
I WILL ADD ONE, ONE THING TOO.
UM, SO YOU'LL BE GETTING AN EMAIL LATER TODAY FROM TODD MAURI.
SO WE'VE SPECIALLY CRAFTED A, UM, A MESSAGE TEMPLATE FOR YOU TO SEND OUT TO YOUR CONSTITUENTS WITH YOUR, UM, WITH YOUR NEWSLETTERS.
AND IT'S GONNA BE SPECIFICALLY FOCUSED ON SUMMER TRAVEL AT THE AIRPORT, UH, AND TIPS AND TRICKS ON HOW THEY CAN MAKE SURE THEY NAVIGATE THE AIRPORTS BETTER.
UM, SO IT'S, WE, WE KIND OF DESIGNED IT SO THAT YOU'D BE ABLE TO JUST BASICALLY SEND IT OUT TO WHATEVER YOUR EMAIL LISTS ARE.
UH, IT'S GONNA GIVE US YOU THE, AGAIN, THE TIPS ON TSA PRE AND, AND, YOU KNOW, SIGNING UP FOR GLOBAL ENTRY, UM, AND, AND HOW WE, YOU KNOW, FROM A PARKING PERSPECTIVE, HOW YOU DEAL WITH PARKING AND PICKUP AND ALL THAT FUN STUFF.
SO, UH, YOU SHOULD SEE THAT LATER TODAY COMING TO YOURS, UH, YOUR EMAIL.
AND THE PARKING WE HAVE GOTTEN FEWER PARKING COM, I MEAN, FEWER, UM, TRAVEL COMPLAINTS.
UM, BUT I DON'T WANNA EVEN SAY THAT.
AND, UM, TODD AND MARY ARE THE BEST.
SO THEY GET ME ANSWERS EVERY TIME I WANT 'EM.
UM, THEY'RE VERY RESPONSIVE AND THEY'RE WONDERFUL, WONDERFUL EMPLOYEES AND VERY THOROUGH.
SO, YAY, TODD AND MARY, WE, WE AGREE WITH YOU ON THAT.
OKAY GUYS, WE WILL HAVE, WE'LL PROBABLY HAVE TO WAIT UNTIL 10 FOR HOUSING.
HOUSING IS NEXT AT 10 O'CLOCK, SO I HAVE SOME DELICIOUS TOMATOES FROM OUR GARDEN
LOOKS LIKE YOUR GARDEN DID WHAT MY GARDEN DID.