* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:17] SEE YOU. WE ARE JOINED BY HOUSTON AIRPORT SYSTEM DIRECTOR, JIM AK AND CFO, CLINT. STEVEN. SO WE'LL LET YOU, UH, IT LOOKS LIKE WE'RE HAVING AN ISSUE WITH THE MONITOR. YEP. I APOLOGIZE FOR THAT. I'M SURE THEY'RE WORKING ON THAT IN THE BACK. BUT, UH, IT'S UP THERE FOR PEOPLE IN THE AUDIENCE AND FOR ALL OF US, WE CAN LOOK ONLINE. SO GO AHEAD AND GET STARTED. OKAY. SO AGAIN, JUST FOR THE RECORD, AGAIN, I'M JIM SNYK, THE, UH, DIRECTOR OF THE HOUSTON AIRPORT SYSTEM. ALONG WITH ME IS CLINT STEVEN, WHO IS MY CFO. UH, I'D ALSO LIKE TO RECOGNIZE IN THE OFFICE IS THE BUDGET CREW THAT DID ALL THE HARD WORK AND PUT IT ALL TOGETHER. SO IF YOU CAN RAISE YOUR HANDS, THAT'S OUR BUDGET CREW. WELCOME BUDGET CREW. YEAH. SO AGAIN, JUST WANNA MAKE SURE WE POINT THEM OUT. 'CAUSE THEY PUT A HARD LOT, A LOT OF HARD WORK IN THIS, UH, NEXT SLIDE. SO, AGAIN, USING THE TEMPLATE THAT WE'VE GOT, UH, WE'LL BE COVERING A LOT OF TOPICS TODAY. SO AGAIN, WE'RE TALKING ABOUT THE, UH, RETIREMENTS, OUR REVENUES, OUR EXPENDITURES, UM, OUR PERSONNEL TRENDS THAT WE'RE DOING AND SEEING, AND THEN OUR INITIATIVES THAT WE'RE GOING FORWARD WITH. NEXT SLIDE. SO FROM A STRATEGIC STANDPOINT, THE AIRPORT SYSTEM, UH, AGAIN, I REPRESENT OVER 13,000, OR SORRY, 1300 HOUSTON AND CITY OF HOUSTON EMPLOYEES. THE HOUSTON AIRPORT SYSTEM ON AN ANNUAL BASIS PRODUCES ABOUT $40 BILLION IN ANNUAL ECONOMIC ACTIVITY FOR THE HOUSTON REGION, AND IS RESPONSIBLE FOR ABOUT 200,000 JOBS. UH, LAST YEAR, WE WILL, UH, HOSTED OVER 64 MILLION PASSENGERS THROUGH OUR, UH, TWO AIRPORTS, OUR TWO COMMERCIAL AIRPORTS. UM, STRATEGICALLY, YOU KNOW, WE EXIST TO CONNECT THE PEOPLE, BUSINESS, CULTURES, AND ECONOMIES OF THE WORLD TO HOUSTON. AND WE DO THAT THROUGH, YOU KNOW, AGAIN, MAKING OUR PASSENGERS HAPPY, ACTING RESPONSIBLY TO ACHIEVE SOCIAL, UH, ECONOMIC AND ENVIRONMENTAL SUSTAINABILITY, BUILDING PLATFORMS FOR FUTURE SUCCESS IN INVESTING IN OUR PARTNERSHIPS IN AN EMPLOYEES. SO, AGAIN, VERY COMPREHENSIVE. AS FAR AS, YOU KNOW, WE RECOGNIZE OUR, UM, IMPORTANCE TO THE HOUSTON ECONOMY AND THE HO HOUSTON COMMUNITY BECAUSE AGAIN, WE ARE A VERY INTEGRAL PART TO THAT. NEXT SLIDE, PLEASE. UM, SO WE ARE VERY, YOU KNOW, AGAIN, SADDENED BECAUSE OF THE FACT THAT WE DID HAVE, UH, A FAIR NUMBER OF OUR EMPLOYEES TAKE THE, UH, BUYOUT. SO WE, WE WISH THEM WELL. UM, WE HAD 370 THAT WERE ELIGIBLE, UM, OF THAT, UH, 102 ACCEPTED, SO ABOUT 28% OF THOSE FOLKS, UH, ACCEPTED. I DID A LOT OF, UH, RETIREMENT PARTIES IN THE LAST COUPLE WEEKS, BUT, UH, WE'RE HAPPY THAT THEY'RE, THEY'RE OFTEN DOING THAT. UM, AND AGAIN, IN OUR BUDGET, UM, FOR APRIL 20TH, WE HAD THE NUMBER OF EMPLOYEES THAT WE WERE, WERE, UH, IN REDUCTIONS IN THERE AT 60, AND IT'S VALUED AT ROUGHLY ABOUT $7.2 MILLION. UM, FOR THAT NEXT SLIDE, PLEASE. UM, SO FOR OUR RESTRUCTURING THAT WE'RE DOING, UM, WITH THE RESTRUCTURE RIGHT NOW, THE AVERAGE SPAN OF CONTROL, UM, IS ABOUT FIVE. UH, AND THEN THAT, UH, IS GONNA GO TO SIX. OUR MANAGERS AND SUPERVISORS WITH LESS THAN 40 DIRECT REPORTS WERE 34. UM, IN THE, IN THE NEW, UH, ALIGNMENT THAT WE'RE GONNA BE WORKING ON, THAT'S GONNA BE ABOUT 20%. AND WE'VE REDUCED OUR LAYERS OF MANAGEMENT FROM SEVEN TO SIX. RECOMMENDED NEW JOB, JOB CLASSIFICATIONS IS THAT WE NEED A SPECIALIZED AIRPORT AND AVIATION PLANNER, UM, THAT WILL BE WORKING ON, UM, OUR INCIDENT COMMAND CENTER IS ABOUT TO BE OPENED AT THE AIRPORT. SO WHAT THAT MEANS IS, IS THAT THE, UH, AIRPORT SYSTEM RIGHT NOW, WE'VE GOT OUR A OC, WHICH IS OUR OPERATION CENTER THAT, UM, HAS THE, THE CALL TAKERS THAT DISPATCH FOLKS WILL, THEY'RE KIND OF IN THEIR OWN UNIVERSE. AND SO WITH THE ICC, WE'RE HAVING THE ABILITY TO BRING OUR CALL TAKING CENTER IN, UH, AND WE'RE GONNA MARRY THAT WITH THE TSAS, UM, OPERATIONAL CENTER IS GONNA BE IN THERE. AND THEN WE HAVE OUR MAINTENANCE DISPATCH IS GONNA MOVE IN THERE. AND THEN WE'RE GONNA HAVE OUR GATE CONTROL AND OUR AIRFIELD OPERATIONS FOLKS. AND SO A LOT OF THE CITY DEPART, OR THE, THE CITY SECTIONS THAT ARE IN THERE ARE ALL GONNA BE IN ONE AREA. UM, AND SO WE'RE GONNA HAVE A NEW COMMAND, UH, DUTY MANAGER THERE. UM, AND THEN, UH, AGAIN, VERY GOOD OPERATION TO BE A REALLY GONNA GIVE US THE ABILITY TO SEE WHAT'S GOING ON COMPLETELY AT THE AIRPORT, UH, AND HAVE ALL THE KIND OF PEOPLE THAT CAN MOVE THE, THE, THE LEVERS THERE, UH, ALL IN ONE ROOM. UM, ALSO SOME TERMINAL OPERATIONS POSITIONS. UM, AND THEN OUR CONVEYANCE, UH, SME, SO SUB SUBJECT MATTER EXPERTS. SO WE WANNA MAKE SURE THAT WE'VE GOT SOME UNIQUE SYSTEMS AT THE AIRPORTS, UM, THAT CONTRACTORS HANDLE AND RUN. AND SO WE WANNA MAKE SURE THAT WE'VE GOT A SUB SUBJECT MATTER EXPERT THAT'S A CITY EMPLOYEE TO BE, MAKE SURE THAT WE CAN WATCH OVER, UM, THOSE SPECIALIZED SYSTEMS. UM, OTHER CHANGES THAT THE AIRPORT SYSTEM IS THAT WE ARE RETURNING TO A GENERAL MANAGER MODEL FOR BOTH AIRPORTS. AND SO THAT'S GONNA ALLOW US, YOU KNOW, AGAIN, WE, WE, AS THE SENIOR STAFF ARE [00:05:01] FOCUSED ON A LOT OF THE, THE, THE STUFF THAT, THAT WORKS, UM, ON A DAILY BASIS. AND THAT MEANS I'M IN A LOT OF MEETINGS. AND SO I DON'T HAVE THE, THE VISIBILITY AND THE TERMINALS THAT I WOULD LIKE. SO I WANNA MAKE SURE THAT I HAVE SOMEBODY THAT'S SOLELY RESPONSIBLE FOR MAKING SURE THAT THE DAY-TO-DAY OPERATIONS INSIDE THE TERMINALS ARE GOING, UH, SMOOTHLY AND HAS THE ABILITY TO KIND OF BE MY EYES AND EARS THERE. UM, SO THE GENERAL MANAGERS WILL RETURN TO, UH, IAH AND TO, UM, HOBBY TO BE ABLE TO HAVE THAT, UM, YOU KNOW, DAILY OVERSIGHT ON THAT. AND THEN WE'RE ALSO GONNA BE CONSOLIDATING MULTIPLE EMPLOYEE GROUPS INTO A SINGLE OPERATING STRUCTURE. AND THAT REALLY GETS INTO OUR TERMINAL MANAGEMENT, UM, SECTION RIGHT NOW. WE'RE GONNA CONVERT THAT INTO TERMINAL OPERATIONS. SO WE'RE GONNA BREAK DOWN SOME OF THE SILOS THAT WE HAVE ON THE WORK GROUPS THAT ARE IN THE TERMINALS AND PUT THEM TOGETHER SO THAT WE CAN BETTER, UM, HANDLE SOME OF THE ISSUES THAT WE HAVE ON A DAILY BASIS AT THE AIRPORT. AND THEN ALSO BETTER HANDLE EMERGENCIES THAT WE WOULD HAVE AT THE AIRPORT BY HAVING THOSE, UM, WORK GROUPS WORK TOGETHER, UH, INSTEAD OF BEING IN THEIR OWN OWN KIND OF SILO. NEXT SLIDE, PLEASE. UM, SO WITH THIS, I WANT TURN IT OVER RIGHT NOW TO, TO CLINT, OUR, UM, CFO, SO HE CAN KIND OF WORK THROUGH THE DETAILS OF THE, THE MATH NOW, THE BUDGET ON THE GOOD, THE GOOD STUFF. MM-HMM . YES. TALKING ABOUT THE MONEY A LITTLE BIT. UH, GOING INTO OUR BUDGET FOR FY 26, WE'RE PROJECTING A, UH, 4.8% INCREASE IN OVERALL REVENUE TO 730, UH, $8.7 MILLION. UM, AIRLINE REVENUE FROM LANDING FEES AND TERMINAL RENTS ARE PROJECTED INCREASE BY $27.2 MILLION OR 6.2%. AND THAT'S, UH, THERE'S SOME ADDITIONAL COST RECOVERY FOR COSTS THAT ARE GONE INTO THE AIRFIELD. AND WE'RE ALSO, WE'VE GOT ADDITIONAL FACILITIES WITH THE D WEST CONCOURSE AND, AND THE ICP COMING ONLINE. SO WE'LL START SEEING SOME RENTS FROM THOSE. AND, UM, WE ALSO SEE THAT THERE HIGHER END PLACEMENTS, WHICH, WHICH ALL COUPLE THERE, ESPECIALLY IN TERMINAL D, THERE ARE PER IN PLAIN CHARGES. SO THOSE COME THROUGH IN OUR RENTS AND LANDING FEES. UM, MOVING ON, PARKING IS A SIGNIFICANT SOURCE OF NON-AIR AIRLINE REVENUE. FOR US, IT'S OUR MOST SIGNIFICANT SOURCE OF NON-AIR AIRLINE REVENUE. IT'S PROJECTED TO INCREASE $7 MILLION DUE TO INCREASED PASSENGER TRAFFIC AND PARKING GARAGE UTILIZATION AND $8.6 MILLION BUDGET OVER BUDGET. SO WE'RE, WE'RE ALREADY EXCEEDING BUDGET THIS YEAR, AND WE EXPECT THAT TREND TO CONTINUE. UH, AUTOMOBILE, UH, RENTAL CONCESSION REVENUES ALSO PROJECTED TO INCREASE BY 3.4%, AND, UH, BUDGET OVER BUDGET IS EXPECTED TO INCREASE 5.2%. UM, I'LL GO INTO IT A LITTLE BIT. I, WE DIDN'T PUT A BULLET FOR CONCESSIONS, BUT CONCESSIONS CONTINUES TO BE RETAIL AND CONCESSIONS CONTINUES TO BE A GOOD STORY ALSO. SO IF WE GO TO THE NEXT SLIDE, PLEASE. IF, IF WE LOOK JUST, I'VE RECAPPED SOME OF THESE NUMBERS, BUT AGAIN, AIRLINE LANDING FEES. WE HAD A LITTLE BIT OF A, A BUDGET SNAFU THIS YEAR. UM, IF YOU GUYS REMEMBER, WE WERE OPENING TERMINAL D, WEST CONCOURSE, AND WE PREDICTED THAT FLYING FOR UNITED WOULD GO UP A LITTLE BIT MORE BEFORE WE GOT THEIR ACTUAL PROJECTIONS, AND IT DIDN'T GO UP AS MUCH AS WE THOUGHT IT WOULD. AND THEN WHEN THEY STARTED REBUILDING TERMINAL B, THEIR FLYING WENT DOWN IN TERMS OF LANDED WEIGHT MORE THAN WE THOUGHT IT WOULD. THEY CARRIED MORE PASSENGERS, BUT ON FEWER AIRCRAFT, WHICH CONVERTS IN, IN LANDING FEES. AND THEN WE ALSO TRENDED SOME CARGO FLYING IN A PERIOD WHERE THEY HAD A LOT OF AMAZON FLIGHTS AND THE AMAZON FLIGHTS WHILE STILL GOOD, WAS STILL HIGHER THAN THEY WERE, ARE LESS THAN THAT TREND THAT WE PROJECTED INTO THE LANDING FEES. SO ADD ALL THAT TOGETHER. WE WERE A LITTLE, WE OVERSHOT A LITTLE BIT ON LANDING FEES THIS YEAR. IT'S A RESIDUAL SYSTEM. WE'LL RECOVER ALL THE EXPENSES THAT WE HAVE IN THOSE COST CENTERS. SO, UM, NOT ANYTHING REALLY TO WORRY ABOUT. WE JUST MISSED ON THE REVENUE PROJECTION A LITTLE BIT LAST YEAR. UM, MOVING DOWN, UH, YOU CAN SEE A LITTLE BIT MORE GRANULAR DETAIL GARAGES. SERVICE PARKING IS UP 5.5 0.4% OVER OUR ESTIMATE. AS I MENTIONED, GROUND TRANSPORTATION AND RETAIL CONCESSIONS. REALLY GOOD STORY. 11.3%. THERE'S A COUPLE OF THINGS FACTORING INTO THAT. THE HOBBY CONCESSION PROGRAM HAS BEEN VERY, VERY SUCCESSFUL. IT'S EXCEEDING OUR EXPECTATIONS. ONE OF OUR NEW, UH, CONCESSIONAIRES, THE RUSTIC, IF YOU HAVEN'T SEEN THE, THE RUSTIC AND HOBBY, YOU SHOULD GO VISIT IT. THEY DID MORE THAN A MILLION DOLLARS IN ONE MONTH, AND THAT IS A RECORD FOR ANY CONCESSION IN ANY AIRPORT IN HOUSTON, EVER. SO, UH, REALLY, REALLY GOOD, UH, SELECTIONS. YEAH, I THINK IT'S WHEN THEY, THEY BRING OUT THOSE SMOKED CHIPS AND THEY PULL THE SMOKE DISH. EVERYBODY'S GOTTA ORDER THAT. SO THEY'RE . THAT IS, THAT'S REALLY, YEAH, THAT'S A REAL SHOW. STOP, MADAM CHAIR. CAN HE RESTATE THAT AMOUNT AGAIN? DID HE SAY 1 MILLION IN ONE MONTH? 1 MILLION IN RUSTICS. GOOD. THAT WAS ONE OF THE, THE TRAIL, RIGHT? RIGHT. YEAH. CONCESSIONS, RIGHT. JESUS LATRELL GOOD. YOU DON'T GET TO CLAIM THAT 1 MILLION . NO. LATRELL LATRELL [00:10:01] WAS REMEMBER. OKAY. AND THEN ALSO, IF YOU REMEMBER, WE OPENED, UH, SEVERAL NEW CONCESSIONS IN, IN THE D WEST PIER AND THE D WEST PIER CONCESSIONS HAVE BEEN EXCEEDING OUR EXPECTATIONS RELATIVE TO THEIR INITIAL PERFORMANCE AND ONGOING PERFORMANCE. THAT INCLUDES THE ANDY CAFE, THE KITCHEN, POPEYE'S, EINSTEIN BAGELS, ALL DOING REALLY, REALLY WELL. AND BY THE WAY, TAKING SOME CONCESSION REVENUE FROM UNITED . SO, UM, GOOD, GOOD NEWS FOR US. RIGHT. UM, ON THE OTHER LINE, I'LL JUST POINT OUT THAT THE ONLY REASON THE OTHER LINE IS LOWER IS THAT'S, THAT'S WHERE WE PUT INTEREST ON POOLED INVESTMENTS. AND IF YOU REMEMBER, THE FED WAS PROJECTED TO LOWER INTEREST RATES GOING INTO THIS YEAR AND INTO NEXT FISCAL YEAR. THEY HAVEN'T GONE DOWN AS MUCH AS WE THOUGHT. SO MAYBE WE'LL EXCEED THAT ONE, BUT THAT'S JUST BASED ON A PROJECTION OF THOSE INTEREST RATES. OKAY, NEXT SLIDE PLEASE. JUST A GRAPHICAL REPRESENTATION OF WHERE WE ARE AND THE TREND IN REVENUE. IT CONTINUES TO GO UPWARD. WE, WE EXPECT IT TO CONTINUE. WE'RE GONNA COVER SOME UNEMPLOYMENT NUMBERS AND UNEMPLOYMENT PROJECTIONS LATER ON THAT SHOW THAT HOUSTON'S AIRPORT IS VIBRANT AND GROWING, AND WE'LL CONTINUE TO GROW. NOW, YOU KNOW, I DON'T KNOW WHAT, UH, THE EFFECTS OF THE CURRENT ADMINISTRATION WILL HAVE ON THE ECONOMY AND, AND, AND FLYING, BUT FLYING SEEMS TO BE A, A HIGHER PRIORITY NOW FOR THE NEXT GENERATION THAN IT WAS FOR SOME PRIOR GENERATION. SO WE HAVEN'T REALLY SEEN A LOT OF FLUCTUATION OUTSIDE OF SOME INTERNATIONAL INBOUND FROM CANADA. UM, BUT IT'S BEEN MOSTLY OFFSET BY INTERNATIONAL OUTBOUND FROM THE US. SO, UH, WE'RE, WE'RE STAYING PRETTY SOLID ON OUR FLYING. IF WE'LL MOVE ON TO THE NEXT SLIDE, PLEASE. UM, THIS IS A LITTLE BIT OF A CAVEAT. UH, WE ARE MAKING AN ACCOUNTING CHANGE IN HOW WE ACCOUNT FOR SOME OF OUR, UH, EXPENDITURES. AND THIS IS AN IN AN EFFORT TO ENHANCE TRANSPARENCY. THERE WAS A CHANGE MADE A FEW YEARS AGO WHERE OUR SKYWAY MAINTENANCE CONTRACT AND OUR PARKING CONTRACT WAS MOVED INTO 80 11 FUND 80 11, AND PAID OUT OF 80 11. UM, I, I UNDERSTAND WHY THEY DID IT. I CAME IN AFTER THE FACT. IT'S NOT PHILOSOPHICALLY THE WAY THAT I WOULD LIKE TO MANAGE THAT. JIM WAS IN AGREEMENT WITH ME WHEN WE STARTED TALKING ABOUT IT. WE'RE GONNA MOVE IT BACK. IT LOOKS LIKE AN EXPENSE. IT SMELLS LIKE AN EXPENSE, AN OPERATING EXPENSE. SO WE'RE GONNA MOVE IT BACK INTO OPERATING EXPENSE. SO YOU'LL SEE SOME FUNKINESS AS WE GO FORWARD BECAUSE OF THAT. BUT THE NUMBERS WILL ALL SQUARE UP. AND INSTEAD OF IT SHOWING UP AS A IF NOW, IT'S GONNA SHOW UP AS 8,001 O AND M. IT, IT'S O AND M FUNDING, AND IT'S GONNA BE IN THE O AND M ACCOUNT. YEAH. IT'S NOT GONNA BE HIDDEN, UM, IN ANOTHER ACCOUNT. SO, UM, AND, AND THIS IS THE WAY MOST AIRPORTS DO IT. SO I, I DON'T, I DON'T WANNA BE ANOMALOUS. UM, AND ALSO EVERY TIME I HAVE TO SIT DOWN WITH A RATING AGENCY OR, OR, UH, A AN UNDERWRITER OR, YOU KNOW, FINANCIAL FIRM, THEY, THEY ASK ME THE QUESTION AND, AND THEY KNOW THAT IT'S MOVED AND THAT THEY HAVE TO ADD IT BACK IN. AND RATHER THAN GO THROUGH THAT STEP EVERY TIME I DECIDED IT'S PROBABLY JUST BEST TO MOVE IT BACK UP. SO THAT'S WHAT WE'RE DOING. BUT YOU'LL SEE IT LOOKS LIKE OUR EXPENSES ARE GOING UP DRAMATICALLY AND THEY'RE NOT. SO WE'LL COVER THAT. NEXT SLIDE, PLEASE. SO WHEN WE LOOK AT TOTAL EXPENDITURES FOR 8,001, THEY'RE PROJECTED TO BE 738.7 MILLION, WHICH IS 4.8% OVER OUR 25 ESTIMATE. THAT'S INCLUSIVE OF DEBT SET SERVICE TRANSFERS, A IF EVERYTHING. OUR O AND M EXPENDITURES ARE BUDGETED TO BE 476 MILLION, WHICH IS AN INCREASE OF 86.8 MILLION OR 22.3%, BUT 62.8 MILLION OF THAT ARE THOSE TWO ITEMS THAT I JUST MENTIONED. THE SKYWAY, UH, MAINTENANCE CONTRACT IN THE PARKING CONTRACT, OUR PERSONNEL BUDGET IS EXPECTED TO DECREASE BY $3 MILLION DUE TO RE RETIREMENTS AND VACANCY FACTOR. OUR SUPPLIES AND NON-CAPITAL EQUIPMENT ARE BUDGETED INCREASE VERY SLIGHTLY BY, UH, UH, 0.38 MILLION, 13.5% CONTRACTED SERVICES. THIS IS WHERE THE, THE MONEY'S SHOWING UP OUR BUDGET TO INCREASE 89.4 OR 40.1% PRIMARILY DUE TO THOSE SKYWAY AND PARKING COUNTY CHANGES. AND THEN OUR, UH, 135.6 MADE TO THE GENERAL FUND IS AN INCREASE OF 8.9 MILLION OR 7.1% OVER OUR FY 25 ESTIMATE. NEXT SLIDE, PLEASE. OKAY. MOVING INTO THE DETAILS BY LINE ITEM, JUST SO IT'S A LITTLE CLEAR. PERSONNEL OVERALL IS GOING DOWN 2% VERSUS OUR ESTIMATE SUPPLIES ARE GOING DOWN. OUR CONTRACTED [00:15:01] SERVICES AND CHARGES ARE GOING UP. AND I'VE GOT A LITTLE BIT OF A BREAKDOWN ON THE NEXT PAGE TO SHOW YOU KIND OF THE DETAIL OF THOSE TWO PIECES THAT WE WERE TALKING ABOUT. NON CAP IS GOING UP 13.9%, AND THEN OUR DEBT SERVICE AND OTHER USES IS GOING DOWN BY 53 MILLION. THAT'S THE RECIPROCAL OF THOSE MONIES BEING MOVED OUTTA A IF BACK INTO O AND M. SO IT'S ACTUALLY GOING UP A LITTLE BIT IN TOTAL, BUT BECAUSE THE 62 MILLION MOVED UP INTO CONTRACTED SERVICES AND CHARGES, THERE'S AN OFFSET. UM, MOVING DOWN TO 80 12, WE'VE GOT A, WHAT LOOKS LIKE A PRETTY DRAMATIC INCREASE IN 80 12 BUDGET OVER BUDGET. IT'S A SLIGHT INCREASE. IT'S JUST A FACTOR OF TIMING, DELAYS IN RECEIVING ROLLING STOCK, ET CETERA. NEXT SLIDE PLEASE. SO THIS, THIS SLIDE I'M JUST USING TO, TO EXPLAIN KIND OF WHERE WE WOULD BE IF WE DIDN'T HAVE THESE ONE TIME ITEMS. AND, AND I PUT A COUPLE OF THINGS IN HERE JUST TO SHOW YOU. THE RECLASS OF THE SKYWAY AND PARKING IS THE 62.8 MILLION I MENTIONED BEFORE. THE HOPE INCREASE IS 4.4 MILLION FOR HAS AND THEN THE IMPACT OF THE NEW FACILITY. SO THE INCREMENTAL AD OF THE NEW INTERNATIONAL CENTRAL PROCESSOR AND THE D WEST PIER ADDS ABOUT $3.2 MILLION WORTH OF EXPENSE. SO IT'S A, IT'S A BIGGER FACILITY. WE HAVE TO HAVE MORE CUSTODIANS, WE HAVE TO HAVE MORE AGENTS TO COVER MORE SPACES, MORE SECURITY, ET CETERA. OKAY, NEXT SLIDE. THIS IS JUST THE GRAPHIC REPRESENTATION OF, OF THE MONEY. WE DID HIGHLIGHT IN THE FY 26, PROPOSED THE 62 POINT, UH, 8 MILLION. NEXT SLIDE, PLEASE. JIM, YOU WANNA COVER THIS? I'LL COVER THE, THE, YEAH, YOU CAN DO IT. YEAH. UH, THE PERSONNEL VERSUS NON-PERSONNEL. UH, OUR PERSONNEL BUDGET IS 150 MILLION. OUR NON-PERSONNEL BUDGET IS 326 MILLION. THE BREAKDOWN OF THE NON-PERSONNEL. WE'VE GOT INTER FUND OF 135 MILLION OTHER CONTRACTED SERVICES, UH, IS 124.8 MILLION INCLUSIVE OF THE, THE TWO THAT MOVE THE SKYWAY MAINTENANCE AND THE PARKING CONTRACT. OUR SUPPLIES COME IN AT JUST UNDER 10 MILLION, AND OUR NON-CAPITAL EXPENSE, UH, COMES IN AT 3.5 MILLION FOR A TOTAL 3.3 25.9. OKAY. ON OUR INNER FUND, THE RESTRICTED SERVICES FY 25 VERSUS FY 26 WE'RE INCREASING FROM A HUNDRED HUNDRED 26 MILLION TO 135 MILLION, AN INCREASE OF 7.1%. AND THERE'S A, A HOST OF THINGS IN THERE, FIRE RATE, POLICE RATE, ELECTRIC RATE, WATER RATE, UM, ALL AFFECTED, UH, THE INTER FUND CHARGES THIS YEAR. NEXT SLIDE, PLEASE. OKAY. SO AGAIN, THAT'S KIND OF THE BUDGET SIDE OF THE HOUSE. SO WE WANT TO, AGAIN, TALK ABOUT FUTURE INITIATIVES AND WHAT WE'RE GONNA USE THE MONEY FOR. SO, NUMBER ONE, WE ALWAYS ARE PRIMARILY FOCUSED ON MAKING SURE THAT WE HAVE REALLY GOOD AIR SERVICE FOR THE HOUSTON REGION. UM, FOR FISCAL YEAR 25, WE HAD 201 NONSTOP DESTINATIONS THAT WE OFFERED 129 DOMESTIC AND 70, UH, TWO INTERNATIONAL. AND AGAIN, WE'RE HITTING, UH, AGAIN, NONSTOP, UH, TO, TO MOST OF THE GLOBE. UH, AGAIN, WE'RE STILL WORKING ON TRYING TO GET OUR AFRICA FLIGHT BACK. UM, BUT BESIDES THAT, AGAIN, WE CAN GET YOU TO ASIA, WE CAN GET YOU TO EUROPE, UH, WE CAN GET YOU TO OCEANIA, UH, AND LATIN AMERICA. WE ARE, AGAIN, THE PREMIER GATEWAY TO LATIN AMERICA, UH, FOR THE AMERICAN AIRPORTS. NEXT SLIDE, PLEASE. AGAIN. UM, AND THIS KIND OF GIVES YOU A LITTLE BIT OF WHY WE'RE, YOU KNOW, WE SPEND A LOT ON CAPITAL, UM, BECAUSE OF THE FACT THAT WE HAVE A LOT OF DEMANDS ON THE FACILITIES 'CAUSE WE HAVE GROWTH IN FRONT OF US. SO AGAIN, WITH 140,000 PEOPLE THAT MOVE TO HOUSTON EVERY YEAR ON AN ANNUAL BASIS, UM, ARE, ARE, YOU KNOW, THE STRENGTH OF OUR MARKET, UM, THE, THE STRENGTH OF THE BUSINESS COMMUNITY IN HOUSTON. WE DO SEE LONG-TERM GROWTH GOING FORWARD. UH, IF WE THINK ABOUT, YOU KNOW, UH, UH, UH, THE, YOU KNOW, THE FORECAST FROM THE FAA THAT THEY PUT OUT FOR US, BASICALLY TRAFFIC THROUGH THE AIRPORTS UP TO DOUBLE, UH, AND THEN BY, BY 2050. SO, UH, AGAIN, A LOT OF DEMAND ON THE AIRFIELD AND, AND THE AIRPORT TO BE ABLE TO EXPAND AND, AND GROW TO MEET THE DEMANDS. NEXT SLIDE, PLEASE. SO WITH, WITH THAT, WE'LL BE, UH, AGAIN, TRYING TO WORK OUR BEST TO BE ABLE TO, UH, IMPROVE THE CUSTOMER EXPERIENCE. AND SO FROM A TERMINAL PERSPECTIVE, WHAT YOU'RE GONNA SEE US WORKING ON FOR THIS FISCAL YEAR, UM, WE HAVE JUST RECENTLY STARTED NEW RESTROOM UPGRADES AT TERMINALS, UH, A AND D AT, UH, IAH AND THEN AT HOBBY, WE ARE DOING SOME RESTROOMS THERE. SO THANK YOU FOR THE MONEY. IT WAS $30 MILLION THAT WE'RE SPENDING ON RESTROOMS, UH, AT THE AIRPORTS. SO [00:20:01] TERMINAL A, UM, IS, YOU KNOW, THOSE RESTROOMS ARE IN, IN DISREPAIR, UH, WE'LL USE THAT TERM. UM, AND SO WE HAVE CLOSED SOME AND WE'VE ALREADY STARTED DEMO ON THOSE. AND SO HOPING TO HAVE OUR FIRST SETS IN TERMINAL A OPEN SOMETIME TOWARDS THE LATE SUMMER. UM, SAME THING WITH TERMINAL D AND AT HOBBY, UH, ALSO WITH THE UNITED AIRLINES TERMINAL B DEAL THAT WE WORKED WITH THEM, UH, THAT INCLUDED US, THE CITY REQUIRING THEM TO REDO THE BATHROOMS IN THEIR TERMINALS THAT THEY CONTROL. UM, SO WE HAVE HAD CONVERSATIONS WITH UNITED. THEY HAVE REACHED THE PHASE WHERE THEY ARE ACTUALLY TRYING TO GET THEIR CONTRACTOR NOW. AND SO WE WOULD ANTICIPATE THAT SOMETIME THIS FALL, THEY WILL CLOSE A SET OF RESTROOMS IN THE, UH, TERMINAL C TO BE ABLE TO START THEIR PROCESS OF REPLACING ALL THE RESTROOMS IN TERMINAL C AND TERMINAL E. SO WE'LL HAVE BRAND NEW RESTROOMS IN A BRAND NEW RESTROOMS AT D TERMINAL B COMES WITH ALL BRAND NEW RESTROOMS. AND THEN THE UNITED TERMINALS HAVE NEW RESTROOMS. SO GIVE US A YEAR, A COUPLE YEAR, YEAR OR TWO, THREE, AND THEN WE'LL HAVE ALL NEW RESTROOMS AT THE AIRPORT, AND IT'LL BE FANTASTIC. UM, YES, IT'S VERY NICE 'CAUSE AGAIN, THOSE, SOME OF THOSE RESTROOMS IN THERE ARE VERY DATED. UM, ALSO WE'RE UPPING FROM OUR TUR OUR, OUR CURB CLEANING AT THE AIRPORT. SO WE'VE GOT OUR OWN STAFF THAT'S OUT THERE WITH THE PRESSURE WASHING. BUT, UM, WE'VE RUN INTO A CHALLENGE. SO THE MAYOR IS VERY, VERY, UM, VOCAL ABOUT THE FACT THAT THERE'S A LOT OF GUM ON THE SIDEWALKS THERE. UM, AND SO, UH, SOME OF IT'S 60 YEARS OLD. UM, AND SO, UM, WE, WE'VE TRIED, UM, PRESSURE WASHING IT. WE'VE CHEMICALS, WE'VE DONE SAND BLASTING ESSENTIALLY, AND EVERYTHING THAT WE COULD DO OUT THERE TO GET SOME OF THAT GUM OFF. WE CAN IMPROVE THINGS, BUT WE CAN NEVER REALLY GET RID OF IT. AND SO WE'VE, UH, IF YOU GO TO TERMINAL A RIGHT NOW, YOU'LL START TO SEE, WE'VE STARTED A PROJECT WHERE WE'RE GONNA BE BASICALLY PUTTING A, A COATING OVER THE SIDEWALKS THERE TO BASICALLY COVER OVER IT. 'CAUSE WE'VE, WE'VE, THAT'S THE ONLY WAY THAT WE'VE GOT IT. IT ACTUALLY LOOKS PRETTY NICE. SO YOU'LL SEE THAT KIND OF ROLLING OUT AROUND THE CAMPUS TO TRY AND KEEP THE, UH, THE CURBS CLEAN. UM, ADDITIONALLY, UM, WE'RE WORKING ON WORKING TO BE ABLE TO DO A FIFA FAN EXPERIENCE SOMEWHERE AT THE AIRPORT. SO WITH TERMINAL D, WHEN THE, THE INTERNATIONAL FLAG CARRIERS MOVE TO THE NEW FACILITY, THAT LEAVES THE ENTIRE TERMINAL D LOBBY, UH, AVAILABLE FOR US. AND SO WE'LL BE LOOKING TO BASICALLY HAVE A REALLY GOOD EXPERIENCE FOR THE FIFA FANS THAT ARE GONNA ARRIVE, UH, AT THE AIRPORT. UH, AS WE GROW, WE ALSO TRY AND MAKE SURE THAT WE GROW SUSTAINABLY. UM, SO WE'VE ACHIEVED OUR AIRPORT COUNCIL INTERNATIONAL CARBON ACCREDITATION LEVEL ONE AND TWO. AND WE ARE IN THE PROCESS RIGHT NOW OF DOING LEVEL THREE, UH, LEVEL ONE AND TWO WERE A LITTLE EASIER BECAUSE IT'S ALL INTERNAL TO US. LEVEL THREE IS THE HARDER ONE BECAUSE THAT WE'RE, AND, AND BRINGING IN ALL THE STAKEHOLDERS FROM THE AIRPORT TO KIND OF WORK ON THAT. UM, WE'RE ALSO, AGAIN, WORKING TO UPGRADE OUR AMENITIES, CONCESSIONS AND OVERALL CUSTOMER EXPERIENCE. SO YOU'LL SEE US COMPLETE, UM, THE TRANSITION OF THE, THE HOBBY, UM, FOOD PROGRAM. UH, WE'RE ALSO GONNA REHAB THE FOOD COURT AND TERMINAL A, SO THE TERMINAL A FOOD COURTS, YOU KNOW, PRETTY DATED, UM, AS FAR AS THE TABLES AND CHAIRS AND THE, THE, UH, TRASH RECEPTACLES AND THAT. SO WE'RE GONNA REDO THAT SO THAT WE CAN GET A GOOD CUSTOMER EXPERIENCE THERE. UM, WE'RE LOOKING, YOU KNOW, OUR SENSORY ROOMS HAVE BEEN VERY SUCCESSFUL AT, AT IAH AND WE'RE LOOKING TO ROLL THOSE OUT TO HOBBY. SO WE NEED TO, TO KIND OF GET THE SENSORY ROOM AT HOBBY SQUARED AWAY. AND THEN WE'RE ALSO IDENTIFYING A PATH FORWARD FOR OUR LOUNGE AT HOBBY AIRPORT. UM, SO WE'RE, AGAIN, HAVING DISCUSSIONS, UM, UH, WITH SOME CONTRACTORS AND, AND, AND AIRLINES THERE ABOUT WHAT A, A LOUNGE WOULD LOOK LIKE AT THE HOBBY AIRPORT. NEXT SLIDE, PLEASE. UM, YOU KNOW, AGAIN, ALWAYS TRYING TO FOCUS ON THE LANDSIDE IMPROVEMENTS. SO IT'S GREAT THAT WE'VE GOT THE NEW CURBS OPEN. AND FROM A TRAFFIC PERSPECTIVE, THINGS ARE, ARE, ARE CALMING DOWN ON THE CDE CIRCUIT. UM, WE, AGAIN, WE DON'T SEE THE HEAVY TRAFFIC OR SEVERE TRAFFIC THAT WE HAD HISTORICALLY. UH, BUT WE'RE ALSO GONNA CONTINUE TO MAKE IMPROVEMENTS. SO ONE OF THAT IS TO, UH, REALLY COMMENCE A BIG, UH, EMPLOYEE PARKING LOT EXPANSION THERE. SO WE CAN PULL MORE EMPLOYEES OUTTA THE TERMINAL CORE. UH, AND THEN ALSO HAVE ROOM FOR GROWTH. AS I MENTIONED EARLIER. WE'RE GONNA, AGAIN, MOVE FROM THAT TERMINAL MANAGEMENT TO TERMINAL OPERATIONS, UH, FOCUS SO THAT AGAIN, WE HAVE SOME BETTER COORDINATION AND WE BREAK DOWN THE SILOS OF SOME OF THE WORK GROUPS. AND THEN, PARTICULARLY FOR THE TRAFFIC FOLKS THAT ARE IN TRAFFIC ON A DAILY BASIS, UM, WE'RE TRYING TO MAKE SURE THAT AS WE REDESIGN THE ORGANIZATION, WE ALSO GIVE THEM A CAREER PATH, UM, SO THAT THEY CAN WORK THE CURB. AND THEN IT ALSO GIVES THEM THE ABILITY TO KIND OF GET OFF THE CURB, UM, IN ADVANCE THROUGH THE ORGANIZATION. 'CAUSE THAT, THAT WORK IN THE, THE CURB IS VERY, VERY IMPORTANT TO HOW THE AIRPORT FUNCTIONS. BUT YOU'RE ALSO SPENDING A LOT OF TIME OUT IN THE HEAT AND HUMIDITY AND INTERACTING WITH THE PUBLIC ON A REGULAR BASIS. AND, UM, YOU KNOW, IT, IT, IT, IT'S DRAINING. UM, AND SO WE WANNA MAKE SURE THAT WE OFFER THOSE FOLKS A GOOD PATH FORWARD, UH, TO BE ABLE TO ADVANCE THEIR CAREER. UM, AND THEN ALSO WE'RE WORKING ON COMPLETING OUR MASTER PLAN, UH, AND IN THE MASTER PLAN COMES TRAFFIC ANALYSIS. SO WE'VE GOT COMPUTERIZED, UH, ANALYSIS OF THE TRAFFIC AT BOTH IAH AND HOBBY. AND THE THING ABOUT THAT THAT'S A LITTLE DIFFERENT IS, IS THOSE TRAFFIC CAN KIND OF GO OUT TO THE ARTERIALS. AND SO THEN THAT WAY WE CAN [00:25:01] IDENTIFY PROJECTS THAT WE CAN WORK WITH TDOT AND THE COUNTY AND THE CITY TO IMPROVE WILL CLAYTON AND JFK AND THEN, UH, THE, THE ROADWAYS AROUND HOBBY, UM, TO MAKE SURE THAT ALTHOUGH THE AIRPORT IS GROWING, WE KIND OF ALSO CAN, UH, GROW THE ROADWAY SYSTEM SUPPORTING THE AIRPORT, UM, SYSTEM. FROM AN AIRFIELD PERSPECTIVE, OBVIOUSLY SAFETY IS OUR NUMBER ONE PRIORITY ON THE AIRFIELD. AND SO WE'RE GONNA BE DOING SOME PROJECTS THERE TO, TO MAKE SURE THAT WE MAINTAIN A VERY SAFE AIRFIELD. UM, WE'RE GONNA BE RE GROOVING SELECT RUNWAYS AT, AT, UM, IAH. AND SO WHAT THAT MEANS IS, UM, YOUR AIRLINE TIRE, WHEN IT LANDS, IT'S BASICALLY A BALD TIRE. AND SO THE TREADING ON THAT IS THE, THE RUNWAY. AND SO WE'VE GOT GROOVES IN THE RUNWAY, AND AS THEY AGE, THEY KIND OF, UH, GET, GET COLLAPSED. AND SO WE'RE GONNA REGROOVE, UM, SOME OF THE RUNWAYS AT, UH, IAH ALSO AT HOBBY. WE'RE GONNA BE UPGRADING, UH, RUNWAY 4, 2, 2. UM, AND THAT'S, UH, YOU KNOW, DOING SOME ELECTRICAL WORK ON THAT RUNWAY AND SOME SHOULDER WORK TO GET IT UP, UM, AND IMPROVED. WE'RE ALSO GONNA BE IMPLEMENTING A SAFETY MANAGEMENT SYSTEM, UH, AT THE AIR AT BOTH AIRPORTS. AND SO THAT'S A, A, A PROGRAM THAT ALLOWS, UM, FOLKS TO, TO BASICALLY IDENTIFY SAFETY AND RISK HAZARDS AND THEN HAVE A, A METHODICAL METHOD OF HOW WE WOULD BE ABLE TO CORRECT THAT. AND THEN WE'RE GONNA BE AT ELLINGTON EXTENDING, UH, WE'VE GOT CLEARWAYS, UM, AT THE ELLINGTON AIRPORT. AND THAT'S, IT'S A REALLY TECHNICAL, NERDY THING FROM A PILOT'S PERSPECTIVE, BUT BECAUSE OF THE FACT THAT THE RUNWAYS ARE ONLY SO LONG, UM, THERE'S A BUNCH OF GREEN GRASS AT THE RUNWAY AT THE END. AND SO WE'RE ALLOWING, UH, FROM A TECHNICAL CALCULATIONS PERSPECTIVE, UH, WE, WE HAVE TO RUN THROUGH SOME STEPS WITH THE FAA, BUT THAT WOULD GIVE THE AIRPLANES A LITTLE MORE TAKEOFF DISTANCE. UM, IT DOESN'T TECHNICALLY CHANGE THE RUNWAY, BUT MATHEMATICALLY IT CHANGES HOW THEY DO THEIR CALCULATIONS. AND THEN WE'RE ALSO DOING A TAXIWAY SIERRA ALPHA AND BRAVO REHABILITATION AT AT IAH. AND THEN OBVIOUSLY WE'LL BE FOCUSED AGAIN ON SECURING ADDITIONAL AIR SERVICE. SO AGAIN, I'VE GOT SOME WINDS HERE ON THE LIST, UH, THAT YOU CAN SEE. SO, UH, AGAIN, WE RECEIVED A NEW AIRLINE THIS FISCAL YEAR, WHICH WAS ZIP AIR RUNNING OUT OF TOKYO. UM, AS OF RIGHT NOW, UH, TALKING TO OUR FOLKS THAT, THAT'S A VERY SUCCESSFUL SERVICE RIGHT NOW, UM, AS FAR AS THE LOAD FACTORS THAT WE'RE SEEING. UM, AND WE'VE GOT NEW NONSTOP DESTINATIONS FROM EXISTING CARRIERS. SO WE ADDED, UH, MEINE HARTFORD, UH, PORT PORTO, ESCONDITO, UH, SALINA, UH, GULF SHORES, WILMINGTON, PORTLAND, UH, MAINE, AND EDMONTON. CALGARY IS, I'M SORRY, EDMONT CANADA IS STARTING BACK UP. SO AGAIN, MAKING SURE THAT WE DO OUR PRIMARY FUNCTION IS TO, TO GET THAT AIR SERVICE UP, UH, FOR THE PEOPLE OF HOUSTON. NEXT SLIDE. UM, AGAIN, WE ARE GONNA CONTINUE TO ADVANCE OUR MAJOR PROJECTS THAT WE'VE GOT GOING ON. SO AT IH, WE'VE GOT TERMINAL B, UM, THAT'S ADVANCING VERY WELL. UH, THEY'RE VERY, UM, FROM A CONSTRUCTION STANDPOINT, THEY, THEY'VE GOT THE CONCOURSES, YOU CAN, YOU CAN READILY SEE THEM. THE TERMINAL IS, IS, UH, BEEN, UH, TOPPED OUT FROM A STEEL PERSPECTIVE, UH, AND, AND PROGRESSING NICELY THERE AT HOBBY. UH, AGAIN, CONTINUING THERE. SO WE, CONSTRUCTION WISE, WE'VE GOT THE, UH, BAGGAGE HALL, UH, THE ROOF AND THE CEILINGS ARE OUT OF THERE. AND WE'RE CONTINUING TO START TO DO THE BAGGAGE WORK THERE. WE'RE REDOING ALL THE RESTROOMS THAT ARE IN THAT BAGGAGE AREA AT HOBBY RIGHT NOW. UM, SO THE MEN'S RESTROOM SHOULD BE OPEN MIDSUMMER, AND THEN WE'LL SWITCH OVER AND GET THE NEW, UM, WOMEN'S RESTROOM, UH, REDONE AT THE HOBBY AIRPORT. AND THEN WE DO HAVE, UH, WHERE THE CONCOURSE ITSELF IS ACTUALLY GONNA SIT. THE COLUMNS HAVE BEEN PLACED, AND SO WE'RE ADVANCING FROM A HOBBY PERSPECTIVE. UM, AND THEN WE'RE ALSO WORKING ON OUR, UH, CENTRAL UTILITY PLANT UPGRADE, UM, AT IAH. AND SO THAT'S REPLACING ESSENTIALLY THE LARGE CHILLERS AND A LOT OF THE TRANSFORMERS THAT POWER THE, UM, THE AIR CONDITIONING AND THE HEATING AT THE, AT THE AIRPORT. NEXT SLIDE, PLEASE. UM, SO THAT'S KIND OF THE FORMAL PART OF THE PRESENTATION, AND SO WE'RE ALWAYS READY AND EAGER TO ANSWER ANY OF THE QUESTIONS THAT YOU MAY HAVE. THANK YOU VERY MUCH. VICE CHAIR CASTILLO, THANK YOU CHAIR, AND THANK YOU DIRECTOR, UH, FOR THE PRESENTATION AND TO YOU AND YOUR TEAM FOR THE FANTASTIC JOB Y'ALL DO WITH OUR AIRPORT SYSTEMS. ON, UM, SLIDE SIX, YOU TALKED ABOUT, UH, SOME REVENUES NEWS, AND I WANTED TO ASK ON PARKING FOR THE GARAGE PARKING, IS THAT TREATED AS A FEE? IF THE PARKING COSTS WERE TO INCREASE, THERE WOULD NEED TO BE A STUDY? SO THE WAY THAT IT WORKS FROM A PARKING PERSPECTIVE RIGHT NOW IS, IS THAT WE WENT TO CITY COUNCIL ORIGINALLY, I FORGET IF LIKE, LET'S JUST SAY 10 YEARS AGO. I'M NOT SURE IF IT'S A HUNDRED, IT'S A HUNDRED PERCENT 10 YEARS AGO, BUT IT'S BEEN A WHILE. AND WE, WE ASKED FOR A RANGE, RIGHT? SO WE WOULD SAY WE WOULD LIKE TO, TO THE PARKING TO BE ABLE TO, FOR US TO BE ABLE TO CHARGE IN THIS RANGE. WE ARE, RIGHT NOW IN THE PROCESS, WE ARE COMING UP AGAINST THE TOP OF THE RANGE. UM, SO WE'VE, WE'VE MAXED OUT OUR RANGE ON THE GARAGES, AND THEN WE'VE ALSO SOME OF THE, THE REMOTE PARKING, BUT WE STILL GOT A LITTLE BIT OF ROOM ON SOME OF THE REMOTE PARKING SPOTS. UM, SO THAT'S SOMETHING THAT WE'LL HAVE TO HAVE A DISCUSSION WITH THE, WITH THE FOLKS. UM, ONE [00:30:01] OF THE KEY THINGS THOUGH THAT WE WANT TO DO FROM A PARKING PERSPECTIVE IS, IS BEFORE WE WOULD COME AND ASK FOR A RATE INCREASE, WE HAD TO IMPROVE THE EXPERIENCE THERE. AND SO THE EXPERIENCE FROM A PARKING PERSPECTIVE, UM, HAS NOT BEEN, YOU KNOW, BEST BECAUSE OF THE FACT THAT WE HAD SOME OLD EQUIPMENT THERE AND THE EQUIPMENT WASN'T DOING THAT. THANKFULLY, WE'VE REPLACED THAT NOW FOR THE VAST MAJORITY OF THE CAMPUS, AND WE SEE THAT IN OUR SURVEYS. SO ANYBODY THAT PARKS IN OUR GARAGE, UM, THAT, YOU KNOW, DOES A RESERVATION AND STUFF LIKE THAT, WE WILL SEND THEM A POST PARKING SURVEY. AND SO ON A QUARTERLY BASIS, WE GET ROUGHLY FOR A TOTAL THING, YOU KNOW, ABOUT 50,000 RESPONSES. AND SO WE CAN DRILL INTO THAT PARKING DATA. AND TO LET YOU KNOW FOR THE CDE GARAGE, THE MAIN KIND OF GARAGE THAT MOST PEOPLE USE THERE, THAT USED TO HAVE A NEGATIVE, UM, UH, A NET PROMOTER SCORE. SO WE WOULD, WE HAD NEGATIVE 35. AND IF WE LOOKED AT LAST YEAR IN OCTOBER, NOVEMBER, UM, WHEN WE WERE DOING THE TRANSITION, I JUST GOT THE MOST RECENT DATA. WE ARE NOW A POSITIVE 35 MM. WOW. YES. AND THAT, THAT'S, THAT'S TWOFOLD, RIGHT? SO NUMBER ONE, IT'S THE NEW EQUIPMENT. SO THE NEW EQUIPMENT IS MUCH MORE, UM, IT'S FRICTIONLESS IF YOU, IF YOU REGISTER THERE, SO YOU BASICALLY READ YOUR LICENSE PLATE, YOU COME IN, YOU PARK, IT READS YOUR LICENSE PLATE OUT YOU GO, IT BUILDS YOUR CREDIT CARD. UM, SO THAT NEW EQUIPMENT HAS MADE A TREMENDOUS IMPACT ON THE, UH, THE, THE PUBLIC'S PERCEPTION OF PARKING AT THE AIRPORT. AND THEN FROM THE TRAFFIC PERSPECTIVE, WE DON'T HAVE THE BACKUPS THAT WE USED TO HAVE ON THE EXIT OF THE AIRPORT THAT WOULD BACK INTO THE GARAGE MM-HMM . AND SO SINCE THOSE TWO THINGS HAVE BEEN SOLVED, OUR TRAFFIC, UH, SATISFACTION FROM A CUSTOMER'S PERSPECTIVE IS, HAS GONE UP SIGNIFICANTLY. GOT IT. ANY, ANY RATE CHANGES WOULD, WOULD BE APPROVED BY COUNCIL UNDER CHAPTER NINE. OKAY. YEAH. AND THEN IN TERMS OF, UM, RIDE SHARES AND, AND CABS, DOES THE AIRPORT MAKE ANY REVENUE OFF OF THE FARES THAT THEY'RE CHARGING CUSTOMERS? WELL, SO THEY HAVE A, THEY HAVE A FEE PER, PER APPLICATION WHEN THEY SHOW UP HERE. SO WE DON'T GET A PERCENTAGE OF WHAT THEY, THEY CHARGE, BUT IT'S PER, PER TRIP. SO AGAIN, OUR UBER AND LYFT FEE IS $3. AND SO EVERY TIME THAT THE UBER SHOWS UP, THEY HAVE TO PAY THE AIRPORT $3. OKAY. WHEN WAS THE LAST TIME THOSE WERE LOOKED AT OR ADJUSTED? WE'RE LOOKING AT IT, IT'S BEEN SOME TIME. AND WE'RE, WHAT WE'RE LOOKING AT IS OTHER AIRPORTS TO SEE WHAT THEY'RE DOING IN THE MARKET AND TRYING TO DETERMINE WHAT'S FAIR. I, I THINK, UM, YOU KNOW, THERE'S, THERE'S ANOTHER COMPONENT TO THAT. YOU GUYS MAY BE FAMILIAR WITH THE TURO COMPONENT, WHICH IS A PEER-TO-PEER, UM, WHICH LOOKS LIKE A RIDE SHARE ULTIMATELY. WELL, IT'S A, IT'S A HYBRID BETWEEN A RIDE SHARE AND A, AND A CAR RENTAL THAT WAS HAPPENING ON AIRPORT. WE WEREN'T, IT WAS LIKE UNDER THE RADAR. WE HAVEN'T, WE WEREN'T RECEIVING ANYTHING. WE FINALLY SETTLED UP WITH TURO AND, AND GOT THAT GOING. SO WE'RE REASSESSING ALL OF THAT. MM-HMM . AND, AND TRYING TO COME UP WITH THE RIGHT. IT MAY BE TIME FOR AN ADJUSTMENT, SO. OKAY. THANK YOU. I'LL GO BACK. THANK YOU. GOOD POINT. COUNCIL MEMBER HUFFMAN. THANK YOU. I HAD A SIMILAR QUESTION ABOUT THE RIDE SHARE. UM, AND SO YOU MENTIONED THAT, YOU KNOW, $3 EVERY TIME THEY ENTER, UM, AND IS THAT FOR ALL RIDE SHARES IT COME THROUGH? SO WHAT DOES THAT INCLUDE? UBER, LYFT? IT'S UBER, LYFT, UM, ALTO, ALTO, ALTO WINGS. I THINK THERE'S, THERE'S A COUPLE OF, BUT OUR, THE VAST MAJORITY OF IT'S UBER AND LYFT. OKAY. GREAT. THANK YOU. COUNCIL MEMBER, MAYOR PRO, TIM, MARTHA, CASTEX, TATUM. ARE WE LOOKING AT THE DRIVERLESS RIDE SHARES YET? SO WHAT I WOULD SAY ON THAT IS WE'VE GOT A GOOD EXAMPLE OF THAT, WHICH IS THE PHOENIX AIRPORT. SO THERE'S WAYMO'S THAT ARE IN AND OUTTA THE PHOENIX AIRPORT, AND THEY'VE BEEN DOING THAT FOR THREE PLUS YEARS AS OF RIGHT NOW. WE, WE WOULD ANTICIPATE THAT WAYMO OR WHOEVER WOULD COME INTO THE HOUSTON MARKET AND PROBABLY START DOWNTOWN. AND THEN ONCE THEY KIND OF GET THAT SQUARED AWAY, THEY WOULD WORK WITH THE AIRPORT STUFF. SO, SO WHEN, WHEN THEY START WE TALKING ABOUT, YOU KNOW, OPERATING IN THE DOWNTOWN MARKET, THEN WE'LL START TO TO TO LOOK AT, YOU KNOW, WHAT WE WOULD DO FOR THEM AT THE AIRPORT. BUT, YOU KNOW, IT'S, IT'S, WE DO HAVE A GOOD EXAMPLE IN THE PHOENIX MARKET AND HOW THEY DO IT. SO WE, WE ARE TAKING IT INTO CONSIDERATION IN OUR LONGER TERM PLANNING. YES. SO OUR PLANNING FOLKS ARE, YOU KNOW, IF WE'RE PROJECTING FIVE TO 10 YEARS OUT AND 10 YEARS AND BEYOND, UH, THEY'RE STARTING TO FACTOR THAT INTO, YOU KNOW, N NECESSITY FOR PARKING, CAPACITY, RIDE SHARE, UH, FACILITY CAPACITY, ALL THAT. SO I WENT TO A TECH CONFERENCE AND THEY DID A STUDY ON IF, UH, PEOPLE COMING FROM THE AIRPORT DID THEY PREFER THE DRIVERLESS, UM, VEHICLES FOR RIDE SHARE OR THE ONES WITH THE DRIVER AND THE DRIVERLESS ONE. SO PEOPLE THAT PEOPLE I WAS IN, I WAS IN ONE IN PHOENIX. AND, AND MY PERSONAL OPINION, I HAD NO PROBLEM RIDING AROUND WITH THOSE IN, ON THE SIDE STREETS. YEAH. UH, HOUSTON DRIVERS ON THE EXPRESSWAY. WE'LL, CRYSTAL, MY POSITION IS I'M NOT READY FOR IT, BUT, BUT I WILL ACCEPT TECHNOLOGICAL CHANGES GOING INTO THE FUTURE. I'M HERE, I'M HERE FOR WAYMO. UH, MY OTHER [00:35:01] QUESTION IS, EXPLAIN TO ME OUR RELATIONSHIP WITH PARKING LOT OWNERS IN THE AIRPORT. SO THE OFF AIRPORT PARKING LOT OWNERS? YEAH, SO WE HAVE A RELATIONSHIP WHERE BASICALLY WE, WE, WE HAVE A, UM, A SYSTEM WHERE WE OBVIOUSLY HAVE TO COORDINATE WITH THEM REGARDING THEIR SHUTTLE BUSES AND HOW THEY OPERATE AT THE AIRPORT. UH, AND THEN ALSO WE DO HAVE A REVENUE PERCENTAGE THAT WE GET FROM THEM, UM, BECAUSE OF THE FACT THAT THEY DO OPERATE AT THE AIRPORT. SO IS, ARE THERE LIKE MEETINGS WITH THEM? DO Y'ALL TALK ABOUT WE'RE GOING TO INCREASE THE FEE? HOW, HOW DOES, HOW DOES THAT WORK? WE, WE HAVE HAD DISCUSSIONS WITH THEM. UM, WE HAVE FOUND OURSELVES WHEN WE DO SURVEYS OF, OF PEER AIRPORTS AND OTHER AIRPORTS THAT WE'RE BELOW MARKET IN WHAT WE CHARGE IN TERMS OF REVENUE SHARE FOR THOSE FOLKS. UM, WE'RE AT 8%. AND, AND FOR INSTANCE, DFWS AT 12%, WHO'S AT 12, 12 DFW. WELL, THERE ARE SEVERAL AIRPORTS. I, UH, I, I'D BE HAPPY TO FOLLOW UP WITH A KIND OF A LIST OF PEER EVALUATIONS, ET CETERA. SO WE HAVE, UH, STARTED CONVERSATIONS AND IT'S, IT'S PART OF THE GREATER, UH, UH, CHAPTER NINE, JIM HAS ASKED, AND I'VE ASKED THAT WE GO BACK AND REVIEW ALL OF OUR, UH, CHAPTER NINE RATES AND, AND FEES JUST FOR JUSTIFICATION AND, AND, YOU KNOW, RETHINKING AND MAKING SURE THAT THEY'RE APPROPRIATE, BOTH FROM A COMPETITIVE STANDPOINT AND, AND, UH, AND A FAIRNESS STANDPOINT FOR THE CITIZENS. SO WE'RE, WE'RE MAKING SURE THAT WE RECONSIDER ALL OF IT. YEAH. SO DO, DO AIRPORT EMPLOYEES PARK IN OFFSITE PARKING OR THEY PARK ON SITE? 'CAUSE I KNOW YOU SAID YOU'RE INCREASING THE AIRPORT EMPLOYEES PARKING. SO THAT'S AN INTERESTING QUESTION. UM, THERE'S, WHEN YOU, WHEN WE TALK ABOUT AIRPORT EMPLOYEES, WE ALSO TALK ABOUT AIRLINE EMPLOYEES. OKAY. SO WHAT WE HAVE IS WE HAVE CONTRACTUAL RELATIONSHIPS WITH SEVERAL ENTITIES THAT ALLOW PARKING FOR THEIR EMPLOYEES IN OUR CENTRAL TERMINAL AREA. AND WHAT WE'RE TRYING TO DO, BECAUSE THAT'S PRECIOUS PARKING THAT, THAT OUR FLYERS REALLY LIKE, AND THEY REALLY WANT IT AVAILABLE, AND THEY DON'T WANT TO DRIVE UP AND SEE A GARAGE CLOSED BECAUSE IT'S FULL. WE'RE TRYING TO REDUCE, AND, AND BY THE WAY, WE RECEIVE A LOT MORE REVENUE FOR A, UH, FLYER PARKING THAN WE RECEIVE FOR AN EMPLOYEE PARKING UNDER CONTRACTUAL RELATIONSHIP. SO WE'RE TRYING TO PROVIDE, UH, PARKING FOR A LOT OF THOSE PEOPLE THAT ARE PARKING IN THE CENTRAL TERMINAL AREA AT A REMOTE LOCATION. NOW, UNITED HAS A BLEND, UNITED HAS A BLEND OF, UH, REMOTE PARKING THAT'S DOWN ON GREENS ROAD AND JFK, UM, AND THEN THEY HAVE SOME CENTRAL TERMINAL AREA. LOOKING FORWARD, WHAT WE'RE TRYING TO DO IS PULL AS MANY CONTRACT PARKERS OUT OF THE CENTRAL TERMINAL AREA TO FREE IT UP FOR THE CITIZENS TO FLY. THANK YOU. MM-HMM . COUNCIL MEMBER RAMIREZ. THANK YOU MADAM CHAIR. THANK YOU DIRECTORS FOR THE PRESENTATION. UM, YOU TALKED ABOUT IN PLACEMENTS DOUBLING IN THE NEXT 25 YEARS. UM, HOW, HOW ARE WE GETTING READY FOR THAT IN TERMS OF CAPACITY? SO AGAIN, YOU'RE SEEING, WE WE'RE JUST COMPLETING OUR INTERNATIONAL TERMINAL EXPANSION. UH, UNITED'S TERMINAL B IS GONNA BE A, A SIGNIFICANT INCREASE IN OUR CAPACITY TO, TO MOVE PEOPLE THROUGH HERE. AN EXAMPLE WOULD BE, UM, SO THE ORIGINAL TERMINAL B WITH THEIR LITTLE FLIGHT STATIONS AND THEIR LITTLE 50 SEAT RJS, UM, THEY COULD DO PROBABLY 400, 400 PASSENGERS PER HOUR. UM, THE NEW TERMINAL ITSELF IS GONNA BE PER BANK IN NORTH OF 4,000. SO WE'RE GOING FROM 400 TO 4,000 MM-HMM . UM, PER BANK ON THAT. SO THAT'S GONNA BE PART OF THE, THE, THE PLAN TO BE ABLE TO, TO DO THAT. OKAY. ON THE BIGGER PICTURE SCALE THING, WE ARE CURRENTLY DOING OUR MASTER PLAN FOR BOTH AIRPORTS. AND SO WITH HOBBY, WE'VE GOT THE SEVEN GATES THAT ARE COMING AND WE'RE WORKING ON A HOBBY EXPANSION, UM, WITH THOSE SEVEN GATES. BUT THEN FOR BUSH, WE'VE GOT 11,000 ACRES OVER THERE. SO WE DO HAVE MORE THAN ENOUGH ROOM OVER THERE TO DO, TO BUILD ADDITIONAL TERMINALS AND RUNWAYS IF WE NEED 'EM. SO, OKAY. SO I WAS GONNA ASK YOU ABOUT RUNWAYS. SO WE'RE ADDING TERMINALS AND GATES AND ALL THAT, BUT DO WE HAVE THE RUNWAY SPACE TO DOUBLE IN PLACEMENTS IN WITHIN THE NEXT 25? SO, SO FROM A RUNWAY PERSPECTIVE, RIGHT NOW, WHAT WE'RE DOING IN THE MASTER PLAN IS, IS THERE IS ANOTHER RUNWAY IN THE EXISTING MASTER PLAN FOR THE AIRPORT. UM, WE'RE, WE'RE RE WE'RE RETWEAKING. WHAT WE THINK FROM AN AIRFIELD PERSPECTIVE IS WE MIGHT BE ABLE TO KIND OF DEFER THAT. UM, AND THAT'S BY CHANGING OUR, OUR, OUR EXISTING RUNWAYS. SO THE EXAMPLE I'LL GIVE YOU IS, IS THAT WE'VE GOT TWO DEPARTURE RUNWAYS AND WE'VE GOT THREE ARRIVAL RUNWAYS. THE THREE ARRIVAL, THREE ARRIVAL RUNWAYS. WHEN WE LAND, UM, TO THE WEST, UH, CAN LAND THREE RUNWAYS. BUT WHEN I LAND TO THE EAST, I CAN ONLY LAND TWO OF THOSE RUNWAYS 'CAUSE IT FLIES OVER, UM, THE TWO DEPARTURE RUNWAYS. SO WHAT WE'RE LOOKING TO DO IS POTENTIALLY JUST TWEAK IT. SO WHAT WE WOULD DO IS EXTEND A LITTLE BIT THE TWO DEPARTURE [00:40:01] RUNWAYS AND THEN PUT A, A MIDFIELD DEPARTURE THERE THAT WOULD ALLOW US TO FLY OVER THEM WITHOUT INTERFERING. AND SO NOW WE WOULD HAVE THREE RUNWAYS COMING IN AND THREE RUNWAYS GOING OUT MM-HMM . UM, SO WITH THAT, JUST THAT TWEAK, UH, WE WOULDN'T HAVE TO DO ANYTHING FROM A RUNWAY PERSPECTIVE FOR QUITE SOME TIME. RIGHT. SO, SO HOUSTON HAS A, A BUNCH OF, OR THE AREA HAS A BUNCH OF SMALLER, UH, UH, AIRFIELDS THAT ARE, THAT ARE PRIVATE. HAVE YOU ALL GIVEN THOUGHT TO PURCHASING ONE OR MORE OF THOSE? SO AS OF RIGHT NOW, WE'RE MORE THAN HAPPY WITH ALL THE WORK THAT WE'VE GOTTA DO AT OUR EXISTING AIRPORTS. UM, SO WE, WE DO HAVE COMBINATION OR CONVERSATIONS AND COORDINATIONS WITH 'EM. SO THE EXAMPLE WOULD BE IS, IS LIKE THE SUGARLAND AIRPORT SO THAT THERE'S THOSE EV TALLS THAT ARE COMING AT US SOMEDAY IN THE FUTURE. AND SO WE'RE, YOU KNOW, KIND OF HAVING CONVERSATIONS BECAUSE WE DO SEE TRAFFIC COMING BETWEEN THE TWO. UM, AND THEN WHAT WE WOULD DO IS WE JUST, YOU KNOW, AS FAR AS THE MASTER PLAN, WE DO ACCOUNT, UH, ACCOUNT FOR THE GROWTH IN THOSE OTHER AIRPORTS. WHEN WE LOOK AT THE, THE FORECAST, THAT'S FOR OUR AIRPORTS, SPECIFICALLY FOR THE, THE GENERAL AVIATION TRAFFIC, YOUR BUSINESS JETS, YOUR LITTLE PLANES. UM, SO WE WOULD, YOU KNOW, AGAIN, IF WE BRING FORTUNE, MORE FORTUNE 500 COMPANIES HERE, YOU KNOW, THEY COULD POTENTIALLY, YOU KNOW, BE HERE AT, AT, AT AT HOBBY OR THEY COULD BE AT SUGARLAND AND WE'D TRY AND FIGURE OUT THE BEST KIND OF MIX THAT THAT'S GONNA GO FORWARD WITH. I'LL GO BACK IN THE QUEUE. OKAY. THANK YOU. I DID MEAN TO EARLIER ACKNOWLEDGE COUNCIL MEMBER DAVIS HAS JOINED US AND ALSO STAFF FROM COUNCIL MEMBER POLLARD'S OFFICE, COUNCIL MEMBER FLICKINGER. THANK YOU FOR THE PRESENTATION AND THANK YOU FOR THE JOB YOU GUYS ARE DOING OUT THERE. UH, IN FACT, I FLEW BACK IN FROM PHOENIX LAST WEEK AND, UH, THE BATHROOMS OVER AT HOBBY WERE VERY NICE. AND IN FACT, UH, YOU KNOW, THE ONE FAUCET THAT GIVES YOU WATER SOAP AND AND DRYER IS ALMOST BEYOND MY TECHNICAL CAPACITY TO DEAL WITH. SO I MAY HAVE TO CATER TO THE BOOMERS A LITTLE MORE. , UH, THE CHILLERS YOU'RE REPLACING, WHAT KINDA LIFE EXPECTANCY DO THEY HAVE? THE CHILLERS? YEAH. GENERALLY IT'S GONNA BE SOMEWHERE AROUND 20, 20 YEARS. OKAY. AND THE DECREASE IN THE LANDING FEES, IS THAT DUE TO THE LARGER PLANES THAT YOU TALKED ABOUT? IT'S, IT, YES. THAT'S A, THAT'S A PORTION OF IT. PART OF THE, UH, ISSUE WITH THE LANDING FEES ALSO IS YOU AMORTIZE THE PROJECTS IN THE AIRFIELD COST CENTER OVER THE, UH, THE 25 OR 30 YEAR PERIOD, DEPENDING ON THE PROJECT. AND SOME OF THOSE PROJECTS THAT WERE 25, 30 YEARS AGO HAVE FALLEN OFF THE AMORTIZATION. SO THE RATE'S GOING DOWN A LITTLE BIT BECAUSE IT'S RESIDUAL. WE'RE JUST CAPTURING THE COST THAT WE SPEND IN THOSE COST CENTERS. YOU PROJECT THE AMOUNT, THE AMOUNT OF LANDED WEIGHT JUST DIVIDE AND COME UP WITH A RATE. OKAY. SO, SO THE LANDING FEES ARE A FACTOR OF WHAT OUR EXPENSES WERE IN ORDER TO YES. OKAY. AND KIND OF ASSUMED IT WAS A FLAT. I DIDN'T REALIZE THAT. OKAY. YEAH, AND, AND YOU KNOW, WE, WE TRY TO PREDICT WHAT'S HAPPENING, BUT WE'VE GOT A LOT OF AIRFIELD WORK COMING UP AND, AND YOU KNOW, WE TRY TO PREDICT WHEN THE PROJECT'S GONNA START, WHEN IT'S GONNA END, AND WHEN WE'RE GONNA START THE AMORTIZATION. SO IT'S, IT'S A LITTLE BIT OF A, AN INTERESTING GAME, BUT OVER THE LONG RUN IT'S ALL RECONCILED BACK TO MATCH. OKAY. UM, YOU TOUCHED ON THE AUTONOMOUS VEHICLES MM-HMM . BUT WHAT TYPE OF PLANNING ARE WE DOING WITH THAT AND WHEN DO WE SEE THAT KIND OF ACTUALLY HAPPEN? THE FLYING ONES OR THE GROUND ONES? THE FLYING ONES. SO, SO, I'M SORRY. YES. OH, BY THE WAY, I WAS IN PHOENIX. I SAW ALL THE, ALL THE WAYMO'S, AND I DON'T KNOW IF THERE WAS THAT MANY OF 'EM OR YOU JUST REMEMBER IT 'CAUSE THERE'S NOBODY SITTING IN THE DRIVER'S SEAT, BUT IT SEEMED LIKE A TON OF 'EM OUT THERE. YEAH, SO ON THE FLYING ONES, WHAT I WOULD ANTICIPATE, SO THEY'RE, THEY'RE IN THE PROCESS RIGHT NOW OF GETTING CERTIFIED BY THE FAA. ONCE THEY GET CERTIFIED BY THE FAA, I THINK YOU'LL SEE SOME DEMONSTRATIONS. SO FROM A HOUSTON MARKET PERSPECTIVE, I, I WOULD THINK THAT WE WOULD PROBABLY START TO SEE THEM MAYBE AROUND FIFA. UM, I DON'T KNOW IF IT'LL BE A FULL SCALE OPERATION DURING FIFA, BUT AT LEAST SOME DEMONSTRATION KIND OF FLIGHTS THAT WOULD BE TRYING TO, TO DO THE FIFA, JUST TO TAKE, YOU KNOW, AGAIN, ADVANTAGE OF ALL THE MEDIA THAT'S GONNA BE HERE. UH, THEY WERE GONNA TRY AND DO THAT WITH THE PARIS OLYMPICS LAST YEAR, BUT THE TIMING DIDN'T WORK OUT RIGHT. BUT I WOULD ANTICIPATE THAT WE WOULD PROBABLY SEE SOME FORM OF AN OPERATION TRYING TO SET UP FOR FIFA TIME. WHAT KIND OF CHALLENGES WILL YOU FACE WITH THOSE? SO, UM, WE'VE GOT THREE AIRPORTS THAT WE'RE GONNA RUN, RIGHT? AND SO FROM A HOBBY PERS I'M SORRY, FROM AN ELLINGTON PERSPECTIVE, I DON'T THINK IT'S TOO DIFFICULT. WE'VE GOT A LOT OF PAVEMENT AND GREEN GRASS OUT THERE WHERE WE CAN OPERATE THEM. UM, AND, AND FROM A HOBBY PERSPECTIVE, WE ARE ANTICIPATING THAT WE'RE GONNA SEE A LOT OF THEM OPERATE ON THE EXISTING FBOS WHERE HELICOPTERS ARE AT. SO IT'S GONNA BE VERY SIMILAR TO A HELICOPTER OPERATION AT HOBBY. FOR BUSH, IT'S A LITTLE DIFFERENT BECAUSE OF THE FACT THAT IT'S GONNA BE MORE OF A NEXUS THERE. AND OUR, OUR CONCEPT FOR BUSH IS, IS DO NO HARM. RIGHT? AND SO WE, WE'VE GOT A BUSY AIRFIELD, UH, WE'VE GOT A BUSY AIRSPACE AND SO WE'RE TRYING TO FIGURE OUT RIGHT NOW WHERE WE ARE GONNA OPERATE THEM AT IAH. AND SO WE HAVE, UH, WE'RE DOING A STUDY WITH ONE OF OUR CONTRACTORS THAT HAS A AIRSPACE SIMULATION COMPUTER PROGRAM. AND SO WE'RE GONNA PICK ABOUT FIVE LOCATIONS ON THE AIRPORT, [00:45:01] LOCATE THEM, AND THEN LET THE COMPUTER TELL US WHETHER OR NOT IT'S A GOOD IDEA TO PUT IT HERE OR A GOOD IDEA TO PUT IT THERE. UM, SO, SO IT SOUND LIKE THERE'S AT LEAST SOME CHALLENGES WITH IT. YEAH, I MEAN, SO, SO AGAIN, IF WE, WE, WE CAN LOOK TO THE, SO THE FAA HAS ALREADY MODELED, UM, THESE OPERATIONS IN LA AND, AND, UM, AND ORLANDO IN SOMEPLACE. AND WE, WE ACTUALLY WENT OUT TO THE TECH CENTER AND, AND TO, TO WATCH THEIR LA MODEL. AND SO, YOU KNOW, TRYING TO BRING THEM IN BETWEEN THE RUNWAYS AT LA SO IF YOU'RE FAMILIAR WITH LA, THEY'RE BASICALLY TWO PARALLEL OR FOUR PARALLEL RUNWAYS. THEY'RE VERY TIGHTLY SPACED. AND SO THEY WERE TRYING TO GET 'EM INTO THE TERMINAL CORE, UH, BETWEEN THAT STREAM OF TRAFFIC AND IT WAS VERY CHALLENGING. SO WE, WE LEARNED OUR LESSON FROM THAT. AND SO WE'RE NOT TRYING TO LAND IT IN THE HEART OF THE AIRPORT, BUT WE'RE LOOKING ON THE PERIPHERY. UM, YOU KNOW, AGAIN, MY, MY OPINION OF WHERE WE THINK IT MIGHT PROBABLY WORK BEST IS SOMEWHERE IN THAT CAR RENTAL, UM, CAMPUS IS, IS PROBABLY AN AREA WHERE IT'S CLOSE ENOUGH TO THE TERMINAL THAT YOU CAN GET THERE AND THEN IT DOESN'T REALLY INTERFERE WITH THE AIR TRAFFIC. BUT AGAIN, OUR GOAL IS NOT TO INTERFERE WITH THE EXISTING AIR TRAFFIC. OKAY. THANK YOU. I'M SUPER EXCITED FOR THOSE ETEL THINGS. COME. OKAY. COUNCIL MEMBER DAVIS, THANK YOU. UH, GREAT INFORMATION. UH, JUST HAD ONE PARTICULAR DEFINITELY ASK, WHICH I GET ALL THE TIME, AND THAT IS THE CHARGES TO THE VETERANS FOR PARKING. I MEAN, YOU KNOW, THEY GET A LOT OF THAT. WE HAD A TOWN HALL MEETING HERE JUST, UM, A FEW WEEKS BACK. THAT'S ONE OF THE, THE COMMUNITY VETERANS WHO GO TO THE AIRPORTS, BOTH AIRPORTS ON THE PARKING. AND I THINK THAT WAS THERE A LIMITED THAT WAS A REDUCED, SO, SO YEAH, SO THE CHALLENGE, OR, OR, OR THE ISSUE IS, IS THAT WE'VE GOT FROM A VETERAN'S PARKING PERSPECTIVE IS, IS THAT WE, IF YOU ARE A VETERAN FROM A PARKING PERSPECTIVE, YOU HAVE ACCESS TO FREE PARKING AT THE AIRPORT, UM, IF YOU'RE GOING ON YOUR TRIP, RIGHT? AND SO FROM A VETERAN'S, UH, USING THE GARAGES, THERE'S A LIMIT ON THERE. I THINK IT'S FIVE, SEVEN DAYS. SEVEN DAYS, SEVEN DAYS. AND THEN FOR THE PARKING, UH, IF YOU GO INTO THE REMOTE LOTS, IT'S A LONGER, I THINK IT MAYBE A MONTH OR SOMETHING LIKE THAT. UM, BUT WHAT WE, WHAT WE, AND, AND, AND THAT'S, IT'S VERY SUCCESSFUL. SO IF WE LOOK AT THE TRANSACTIONS ON OUR VETERAN PARKING LAST YEAR, UM, LAST YEAR WE, WE DID 114,000 VETERANS GOT TO PARK AT THE AIRPORT FOR, FOR FREE USING THAT PROGRAM. SO IT'S A PRETTY ROBUST PROGRAM, BUT BECAUSE OF THE FACT THAT OUR GARAGES ARE UNDER PRESSURE, YOU KNOW, THE CDE GARAGE CLOSES ON A REGULAR BASIS, AB WILL CLOSE. AND AS WE GET CLOSER TO THE SUMMER, UH, WE, WE HAVE TO KIND OF STRIKE THE BALANCE OF, OF THAT PARKING. AND SO WHAT WE'VE DONE IS, IS THAT ALTHOUGH VETERANS THAT ARE TRAVELING ARE, ARE GETTING THE FREE PARKING AT THE AIRPORT, UM, IF YOU'RE A VETERAN THAT QUALIFIES OR DISABLED VETERAN OR YOU CAN'T PARK IF YOU'RE AN EMPLOYEE THERE, 'CAUSE THEY HAVE THE ABILITY, THEY KNOW HOW THE AIRPORT WORKS. WE HAVE THE ABILITY FOR THEM TO PARK IN THE EMPLOYEE PARKING LOTS. AND SO THE, IF YOU'RE, IF YOU'RE A VETERAN AND YOU HAVE THE LICENSE PLATE AND YOU'RE JUST GOING TO THE AIRPORT TO, TO WORK, UM, THAT'S WHERE IT'S ONE OF THOSE THINGS THAT YOU AS A VETERAN HAVE TO PARK IN THE EMPLOYEE PARKING LOT WHEN YOU'RE DOING YOUR EMPLOYEE WORK STUFF. YEAH, I, I, YEAH, THAT MAKES SENSE. BUT I THINK MY CONCERN IS, YOU KNOW, WE HAVE, HOUSTON IS THE SECOND LARGEST VETERAN HOSPITAL, UH, FACILITY IN THE COUNTRY, SO WE GET A LOT OF VETERANS THAT COME IN AND OUT. WE GET A LOT OF VETERANS THAT COME FROM RURAL COMMUNITIES AND AROUND THE AREAS FLYING IN AND OUT AND OF FIVE DAYS. I MEAN, THAT'S, THAT'S WITHOUT BEING CHARGED. I MEAN THAT, THAT IN THE GARAGE, WE'RE TALKING IN THE GARAGE, CORRECT? THAT'S, YEAH. SEVEN DAYS FOR THE GARAGE, YES. OKAY. SEVEN DAYS. I MEAN, THAT, THAT'S, THAT'S A VE THAT'S, THAT'S ONLY, I MEAN THAT'S, THAT'S KIND OF MINIATURE, I MEAN, I MEAN, WHAT, WHAT, LET ME, WHAT'S THE CONCERN? SO PARTICULARLY, SO IF WE TALK ABOUT DISABLED VETERANS, OUR CHALLENGE ULTIMATELY IS WE ONLY HAVE A LIMITED AMOUNT OF, UM, OF, UH, DISABLED PARKING SPACES. AND THAT INCLUDES OUR, OUR VETERAN COMMUNITY AND OUR REGULAR COMMUNITY. SO YOU'VE GOT A LOT OF, UH, COMPETITION FOR THOSE SPOTS. AND WE DON'T WANT TO HAVE FOLKS COME IN THERE AND PARK THEIR VEHICLES FOR EXTENDED PERIODS BECAUSE PREVIOUSLY THERE WAS NO LIMIT. AND WHAT WE WOULD FIND IS PEOPLE WOULD COME IN THERE AND THEY WOULD PARK THEIR VEHICLES FOR MONTHS, UM, BECAUSE THEY WOULD, YOU KNOW, THEY WOULD GO FOR, YOU KNOW, THEY WOULD GO, THEY, THEY THEIR SNOWBIRDS. SO THEY MIGHT GO SOMEWHERE, YOU KNOW, KIND OF IN THE, IN THE SUMMERTIME THEY WOULD LEAVE AND THEY WOULD LEAVE THERE FOR MONTHS. AND SO IF WE THINK ABOUT SOMEBODY WHO'S GONNA LEAVE THEIR VEHICLE AT THE AIRPORT FOR MONTHS, IT REALLY HURTS THE PEOPLE WHO ARE TRYING TO GO IN AND OUT OF THE, THE FACILITY. UM, SO WE WANT TO TRY AND AGAIN, TAILOR IT TO THE PASSENGER WHO'S GONNA BE USING THE AIRPORT FROM A, FOR A PASSENGER EXPERIENCE, NOT NECESSARILY TO GET THE PEOPLE THERE THAT ARE GONNA BE PARKING THERE FOR MONTHS. WELL, I'M, I'M GONNA GET OUT THE QUEUE, BUT I, I JUST LIKE TO FURTHER CONVERSATION WITH YOU CONCERNING THAT BECAUSE I MEAN, I DON'T, I DON'T REALLY KNOW IF, I MEAN, IF THAT'S SOME NUMBERS TO BACK THAT UP, I WILL BE INCHED IN THOSE NUMBERS SO I CAN HAVE THAT DISCUSSION [00:50:01] WITH SOME OF OUR VETERAN AGENCIES AND SO FORTH, YOU KNOW, IN REGARDS TO IT. THANK YOU. THANK YOU. KATE LER WITH COUNCIL MEMBER CAYMAN'S OFFICE. THANK YOU SO MUCH FOR YOUR PRESENTATION. UM, WHILE WE RECOGNIZE THAT THE CUSTOMS AND BORDER PATROL OPERATE THEIR OWN FEDERAL JURISDICTION WITHIN THE AIRPORTS, HAS THE AIRPORT BEEN MADE AWARE OR GAINED ANY KNOWLEDGE OF FEDERAL AGENTS ARRESTING OR DETAINING INDIVIDUALS TRAVELING OUT OF OR ARRIVING AT OUR AIRPORTS? WE ARE HEARING REPORTS THAT THIS IS HAPPENING HERE, AND NEWS SOURCES JUST RELEASED AN ARTICLE ABOUT A LEGAL GREEN CARD HOLDER BEING TAKEN OFF A FLIGHT IN DALLAS AND HAS SINCE BEEN IN CUSTODY, NO ONE CAN REACH HIM. YEAH, SO, SO FROM OUR PERSPECTIVE, UM, WE, WE HAVEN'T SEEN WHAT I WOULD CALL ANYTHING UNUSUAL. UM, SO AGAIN, IF WE THINK ABOUT DENIED ENTRIES, SO ON A DAILY BASIS, AND THIS IS THIS ADMINISTRATION AND PREVIOUS ADMINISTRATIONS, WE WOULD GET PEOPLE THAT WOULD COME IN THAT ARE INADMISSIBLE AND THEY GET SENT BACK. UM, SO WE HAVEN'T SEEN ANYTHING PICKED UP, YOU KNOW, THERE, I'M NOT AWARE OF ANYTHING SPECIFIC OR TARGETED FOR FOLKS THAT ARE TRAVELING ON THE, UH, YOU KNOW, COMING INTO BUSH THAT, THAT WE'RE HAVING TARGETS. UM, YOU KNOW, OR ANY KIND OF ADVANCED, UH, YOU KNOW, UH, OR, OR ENHANCED KIND OF SCREENING OVER THERE. UM, GENERALLY IF YOU'RE FLYING IN, YOU'VE GOT YOUR PASSPORT, YOU'VE GOT YOUR VISA, UM, YOU'RE GONNA GET, UM, YOU KNOW, THEY, THEY GET THE MANIFEST NINE HOURS PRIOR TO THE FLIGHT SO THAT THEY, THEY KNOW WHO THEY'RE LOOKING FOR GENERALLY IF THEY'RE, YOU'RE GONNA COME IN. BUT I WOULDN'T SAY THAT THERE'S ANYTHING UNUSUAL GOING ON RIGHT NOW. THANK YOU. COUNCILMAN RAMIREZ. THANK YOU, DIRECTOR. I MAY HAVE MISSED IT, BUT, UM, I NOTICED COMMERCIAL DEVELOPMENT EXPENSE WAS UP, UH, DRASTICALLY FROM 12 MILLION TO I THINK 59 MILLION MAYBE YOU SPOKE TO IT, BUT CAN YOU, CAN YOU EXPLAIN THAT? UH, I'M SORRY, I'M HAVING A LITTLE TROUBLE HEARING YOU. UH, COMMERCIAL DEVELOPMENT EXPENSE, UH, PAGE 14 OF THE BIG BOOK, UH, UP I THINK FROM 12 MILLION TO 59 MILLION, IF I READ THAT CORRECTLY. OH, THAT, THAT, THAT'S THE PARKING CONTRACT. PARKING CONTRACT. THAT'S THE PARKING CONTRACT. OKAY. I SEE. ALRIGHT. UM, THE PARKING CONTRACT IS MANAGED UNDER COMMERCIAL DEVELOPMENT, ALL ROLLS UP TO O AND M, BUT IT'S IN THAT COST CENTER. SO THAT, THAT WAS A 50, A 50 MILLION PLUS. OKAY. DOLLAR TRANSFER. OKAY. UH, FEDERAL FUNDING THAT WE GET, IS THAT INCLUDED? WHERE IS THAT INCLUDED IN THE INFORMATION? SO IT'S NOT INCLUDED IN, IN OUR O AND M BUDGET. SO WE HAVE, RIGHT NOW, WE, WE HAVE ABOUT $186 MILLION IN FEDERAL GRANTS, UH, THAT HAVE BEEN GRANTED AND WITH A BALANCE OF ABOUT 169 TO 170 MILLION REMAINING TO BE SPENT. AND WHERE DOES THAT GO? UH, YEAH, THAT'S GONNA BE IN OUR CAPITAL BUDGET. IT'S, IT'S IN OUR CAPITAL BUDGET, BUT IT'S NOT INCLUDED IN THE BUDGET THAT, THAT WE'VE BEEN GIVEN. IS THAT RIGHT? THE, THE EXPENDITURE, THE, THE, THE COVERAGES FOR THE CAPITAL BUDGET SPEND IS IN THIS BUDGET, BUT NO, WE, WE, WE DON'T SHOW THE OFFSET. WE DON'T SHOW THE IN AND THE OUT IN THIS BUDGET. OKAY. UM, I'D BE, I'D BE HAPPY TO GIVE YOU A SUMMARY. IT'S 186 MILLION OF, UH, OF, OF GRANTS THAT HAVE BEEN GRANTED UNDER SEVERAL, UH, PROGRAMS, A-I-P-A-I-G WITH 169 OR 170 MILLION 169.8 OR SOMETHING MILLION. OUTSTANDING. SO IS THAT INCLUDED IN THE 738 MILLION REVENUE? NO. FIGURE. IT'S NOT, NO. OKAY. BUT IT, OKAY. AND, AND I'D, I'D LOVE TO SEE THAT BREAKDOWN, IF YOU DON'T MIND. YEAH, YEAH. WHERE, WHERE YOU'D NOTICE IT WOULD BE IS IS THAT BASICALLY FOR OUR DEBT SERVICE, SO WHEN WE, YOU KNOW, WE, WE WE'RE GONNA PUT OUTLAYS OUT FOR BUILDING A RUNWAY OR BUILDING A TAXIWAY. UH, AND THEN WHEN WE'RE, OUR GRANTS ARE REFUNDED, IT BASICALLY JUST BRINGS ON A, OUR DEBT SERVICE. OKAY. AND LAST TOPIC HERE, PAGE 20, MAJOR CAPITAL PROJECTS. UH, TERMINAL B TRANSFORMATION AT IAH, UH, ONE OF THE BULLET POINTS WAS CREATING A MULTIMEDIA INTERACTIVE PARK WITH A COMFORT ZONE FOR FOLKS NEEDING TO DECOMPRESS AND RELAX. WHAT, WHAT IS ENTAILED THERE AND HOW MUCH DOES IT COST? SO THAT'S GONNA BE PART OF UNITED SPECIFIC PROJECT COSTS. AND WHAT THAT ULTIMATELY IS, IS THAT WHEN, AND IF YOU THINK ABOUT THE EXISTING TERMINAL B, THE WAY THAT NEW TERMINAL B IS GONNA FUNCTION IS, IS THAT, UM, THEY'RE BUILDING A NEW TICKETING HALL IN THE GROUND LEVEL. AND THEN THERE'S GONNA BE A NEW, UM, TSA SECURITY CHECKPOINT ON THE MEZZANINE, AND THEN ESCALATORS GONNA, ARE GONNA COME DOWN INTO THE EXISTING TERMINAL B. WHEN YOU GET INTO THE EXISTING TERMINAL B. UM, THEY'VE GOT BASICALLY A, UH, SHOPPING CORD IN THERE AND IN THE CENTER THEY'VE GOT SOME DIGITAL DESIGNS IN THERE. IT'S KINDA LIKE DIGITAL ART. UM, AND SO THEY'LL HAVE THAT. UM, I DO HAVE LIKE A VIDEO THAT SHOWS THE FLY-THROUGH OF WHAT TERMINAL B'S GONNA LOOK LIKE. SO WE CAN ATTACH THAT AND SEND IT OUT TO YOU SO YOU CAN TAKE A LOOK AT IT. YOU'LL BE ABLE TO SEE IT AND COST, UH, I'M NOT, YEAH. YEAH. JUST AS A REMINDER ON THAT PROJECT SAYS $2.5 BILLION PROJECT HAS ENABLING IS WE'RE COMMITTED UP TO 624 MILLION. SO THAT, AND IT'S A VERY SPECIFIC LIST [00:55:01] OF PROJECTS THAT HAS IS, IS, UH, FUNDING. UM, AND THAT IS NOT ONE OF THE, THE PROJECTS. SO THAT'S A UNITED EXPENSE FOR A UNITED, UH, UH, BENEFIT IN IT. I CAN PROBABLY ASK THEM AND GET THE, UH, SPECIFIC COST FOR THAT PARTICULAR AREA. THEY DO SHARE, UH, THOSE COST, THOSE CASH FLOWS WITH US. GREAT. THANK YOU SO MUCH. YEAH. COUNCIL MEMBER FLICKINGER, I HAD ONE LAST QUESTION ABOUT SPACEPORT. UH, YEP. QUITE A FEW COMPANIES LOOKING AT GOING IN THERE AND WITH THE WHOLE A AND M PROJECT AT NASA THE WHOLE BIT, WHAT KIND OF PLANS ARE WE MAKING TO BE ABLE TO ACCOMMODATE THEM? IT, IT, UH, IMPORTANT, SO THERE'S KIND OF THREE, THREE THINGS THAT WE'RE TRYING TO MAKE SURE THAT WE FOCUS ON THERE. SO NUMBER ONE IS THE EXISTING TENANTS AND MEETING THEIR GROWTH NEEDS. SO MAKING SURE THAT AXIOM AND INTUITIVE MACHINES PARTICULARLY HAVE THEIR ABILITY TO GROW, UM, THEIR OPERATIONS. 'CAUSE THEY'VE GOT A LOT OF, UH, YOU KNOW, BASICALLY APPLICATIONS OUT THERE OR, OR PROPOSALS OUT THERE WITH THE FAA OR WITH THE, UH, NASA AND IF THEY GET THEM, THEY NEED TO GROW. UH, NUMBER TWO IS THAT WE'RE LOOKING, AGAIN, TRYING TO DO A MULTI-PURPOSE BUILDING OUT THERE THAT WOULD ALLOW THEIR SUPPLIERS TO COME IN AND BE KIND OF CLOSE TO THEM. SO THAT'D BE A SMALLER BUILDING, YOU KNOW, BUILDING THAT'S GONNA ALLOW PEOPLE TO GET A 10,000, 20,000 SQUARE FOOT FACILITY AND NOT HAVE TO DO THE BIG ONE. AND THEN WE'RE ALWAYS OUT FISHING FOR MORE WHALES. UM, SO LOOKING FOR THE BIG, UH, FOLKS THAT ARE GONNA COME IN TO KIND OF HELP THEM, UH, AND BE IN SIMILAR SIZE AND SCALE, UH, TO THEM TO BE ABLE TO OPERATE THAT AT THE SPACEPORT. THANK YOU. AND, AND WE'RE CONSIDERING DIFFERENT MODELS, INCLUDING A DEVELOPER MODEL WHERE WE'RE NOT GONNA TAKE ANY FINANCIAL RISK OF THE NEW FACILITY. WE'LL JUST BENEFIT AS THEY, UH, AT THEIR OWN RISK SELL. OKAY. THANKS. JUST ALONG THOSE LINES, WHILE WE'RE TALKING ABOUT THE SPACEPORT, AND I SUBMITTED SOME QUESTIONS ONLINE, BUT WHERE IS THE O AND M ACCOUNTING FOR THE SPACEPORT ACTIVITIES IN, IN THIS BUDGET? WHERE CAN I FIND, SO THERE'S A REVENUE FROM THE RENTALS OKAY. OF THE SPACEPORT THAT FLOW INTO OUR REVENUES INTO 8 0 0 1. YEAH. 8,001. CORRECT. AND ARE THERE ANY O AND M EXPENSES? THERE ARE SOME MINOR, UH, O AND M EXPENSES THAT, THAT ARE MOSTLY RECOVERED THROUGH THOSE RENTS. OKAY. UM, MAINTENANCE OF THE, UH, UH, ESPLANADES AND THE OKAY. AND THE ENTRANCE THERE, THE, THE, THE SIGN AND, UM, UH, A FEW OTHER EXPENSES. OKAY. BUT, UH, THERE ARE SOME ALSO SOME, SOME PASS THROUGH EXPENSES JUST TO BE CANDID AND TRANSPARENT. FOR INSTANCE, UH, THE ELECTRICITY, UH, IS BILLED TO US THROUGH THE INTER FUND, AND THEN WE REBUILD THE, UH, TENANTS OUT THERE. GOT IT. AND, AND THEY PAY US, SO. GOT IT. OKAY. THANK YOU. COUNCIL MEMBER CASTILLO. THANK YOU, CHAIR. IN TERMS OF EFFICIENCIES, UM, ARE WE UTILIZING AI AT ALL AT THE AIRPORT SYSTEM? UH, SO WE ARE, UM, WE, WE JUST ACTUALLY TRANSITIONED TO A NEW, UM, WEBSITE. SO IT'S A MUCH CLEANER WEBSITE. IT'S MUCH MORE INTUITIVE. YOU DON'T HAVE TO CLICK THROUGH SO MANY THINGS. AND WE'RE ACTUALLY USING AI TO RUN THE LITTLE CHAT BOT THAT'S ON THE, THE, UM, ON THERE. UM, WE'RE ALSO EXPERIMENTING WITH SOME EQUIPMENT NOW THAT THAT'S KIND OF, I, IT'S AI ISH. UM, SO WE'VE GOT SOME, UH, YOU KNOW, AGAIN, LOOKING AT ROBOTIC FLOOR SCRUBBERS THAT WILL GO OUT THERE AND JUST SCRUB AND YOU DON'T HAVE TO HAVE A, A PERSON DOING THAT. UM, AND THEN WE'RE NOT QUITE THERE YET, BUT ULTIMATELY AT SOME POINT WE'D PROBABLY SEE THAT GOING INTO LIKE THE GRASS MOWING OPERATION WHERE YOU'D GET AUTONOMOUS GRASS MOWERS AT SOME POINT, UM, WHERE, YOU KNOW, BUT THAT'S PROBABLY MORE PROBABLY FIVE TO 10 YEARS DOWN THE ROAD. SO IN TERMS OF THE UPCOMING FISCAL YEAR, I MEAN, DO YOU HAVE ANY GOALS AROUND WHAT YOU'D LIKE TO SEE IMPLEMENTED AT THE AIRPORTS WITH RESPECT TO AI? YEAH, SO AGAIN, WE WANT TO, AS THEY PROGRESS, WE LIKE TO USE, I MEAN, I, AGAIN, WE, WE USE IT ON OCCASION FOR OUR OWN JUST INTERNAL STUFF. SO WE'LL RUN SOMETHING THROUGH CHAT GP, YOU JUST SEE WHAT IT, IT DOES, UH, AND SAYS, UM, BUT YOU KNOW, AGAIN, WHAT WE'RE TRYING TO DO IS, UM, WE'VE GOT A LOT OF SYSTEMS AT THE AIRPORT RIGHT NOW THAT ARE STARTING TO ADD AI TO THEIR PRODUCT MIX. AND SO I'LL GIVE YOU AN EXAMPLE. SO WE HAVE A COMPUTER SOFTWARE PROGRAM THAT DOES GATE MANAGEMENT, RIGHT? MM-HMM . THIS PLANE'S SUPPOSED TO BE HERE, BUT IT'S LATE AND NOW IT'S NOT LATE. AND IT'S LIKE, SO WE'VE GOT PEOPLE THAT, THAT MANAGE THAT. AND SO, YOU KNOW, WHEN WE LOOK THE VENDOR THAT, YOU KNOW, OPERATES THAT SYSTEM AS THEY BRING AI INTO THAT COMPUTER SYSTEM, IT MAY BENEFIT US BECAUSE OF THE FACT THAT NOW OUR PEOPLE CAN, INSTEAD OF THEM TRYING TO USE ALL THEIR BRAIN POWER TO FIGURE OUT WHERE I'M GONNA PUT THIS PLANE NOW, THE COMPUTER MIGHT BE ABLE TO FIGURE THAT OUT, UM, YOU KNOW, A LITTLE BIT MORE QUICKER OR AT LEAST BE ASSISTING THOSE FOLKS, UH, TO DO THEIR JOB AND MORE EFFICIENTLY. YES, THERE, THERE'S A NUMBER OF APPLICATIONS FROM, FROM THAT TO SECURITY TO EVEN JUST MAINTENANCE AND OPERATIONS WHERE AIRPORTS HAVE STARTED TO, TO INCORPORATE IT. SO, YEAH. UM, IT'S GOOD TO HEAR THAT, THAT Y'ALL ARE ALSO LOOKING AT IT AND FIGURING OUT WAYS TO, TO BRING IT INTO OPERATIONS. YEAH. SO AGAIN, WE, WE WANNA MAKE SURE THAT WE HELP OUR EMPLOYEES, UM, WITH THEIR DAILY [01:00:01] TASKS SO THAT THEY CAN DO THINGS, YOU KNOW, MORE EFFICIENTLY. UM, AND SO AGAIN, IT'S, IT'S, IT'S DEFINITELY A WAVE OF THE FUTURE. AND OBVIOUSLY WE WE'RE NO, WE'RE NO, UM, WE'RE, WE'RE NOT, WE'RE NOT OBJECTING TO STEALING GOOD IDEAS. SO WE, WE OBVIOUSLY FOLLOW WHAT THE OTHER AIRPORTS ARE DOING. AND SO, UM, YOU KNOW, IF IT'S ONE OF THOSE THINGS THAT SOME AIRPORTS FIGURED OUT SOME WAY TO USE AI OR USE AUTOMATION, WE ARE DEFINITELY INTERESTED IN FIGURING OUT HOW TO DO IT TOO. THANK YOU. COUNCIL MEMBER DAVIS. THANK YOU MADAM CHAIR. AGAIN. LAST THING I WANT TO ASK. I MEAN, ARE WE, YOU KNOW, WITH THE ISSUES OF AIR TRAFFIC CONTROLLERS, ARE WE HAVING ANY TROUBLE IN REGARDING TO BOTH AIRPORTS WITH AIR TRAFFIC CONTROLLERS OR EVEN TRAINING NEW ONES? IS THAT, ARE WE GOOD IN THAT AREA? SO, I, I WILL SPEAK IN GENERALITIES ON THAT FOR THE HOUSTON MARKET. SO THAT'S OUR HOUSTON AIR TRAFFIC CONTROL TOWERS. YES. WE DO HAVE A CENTER HERE AND WE DO HAVE A TRACON HERE. IN GENERAL, NO, HIRING IS NOT A PROBLEM FROM THE HOUSTON MARKET. GOOD. 'CAUSE IT'S THE, THE QUALITY OF LIFE AND THE, THE LOWER EXPENSES HERE IN HOUSTON. YES. GENERALLY THEY HAVE THE ABILITY TO, TO GET CONTROLLERS PRETTY EASILY. YOU KNOW, THAT'S WHY IF YOU HEAR ABOUT THE NEWARK PROBLEMS, THEY HAD THE NEWARK TRACON UP THERE AND THEY COULDN'T GET PEOPLE TO WANNA LIVE UP IN THAT NECK OF THE WOODS. 'CAUSE IT'S TOO EXPENSIVE AND QUALITY OF LIFE IS NOT GOOD. SO OUR, OUR PERSPECTIVE IS, IS, AND WE, WE, WE WATCH, SO WHEN WE GET PUT INTO DELAY PROGRAM, UM, FROM THE AIRPORT SYSTEM, WE WATCH THE, THE RATIONALE. UM, SO IT'S, YOU KNOW, OUR STUFF IS THUNDERSTORMS, RIGHT? YEAH. YOU KNOW, BUT IF YOU LOOK AT SOME OF THOSE OTHER AIRPORTS, YOU'LL SEE THAT THEY'RE BEING DELAYED AND IT'LL SAY STAFFING. RIGHT. SO I CAN KIND OF IDENTIFY, I THINK I'VE SEEN A STAFFING ONE AT HOUSTON HERE ONCE IN THE LAST MM-HMM . MM-HMM . THREE YEARS. SO IT'S GENERALLY WE'RE, WE'RE, WE'RE. OKAY. GOOD. THAT'S A PLUS. THAT'S A PLUS FOR OUR CITY. YES. VERY GOOD. THANK YOU. I THINK THAT'S ALL THE QUESTIONS WE HAVE FROM COUNCIL IS, ARE THERE ANY PUBLIC SPEAKERS EITHER ONLINE OR IN THE CHAMBER THAT WOULD LIKE TO ADDRESS US? ALRIGHT. SEEING NONE, I WILL SEE EVERYBODY TOMORROW AT 9:00 AM FOR A WHOLE OTHER ROUND OF BUDGET WORKSHOPS. THANK YOU SO MUCH, DIRECTOR. THANK YOU. THANK YOU MR. STEVENS AND EVERYBODY. STAFF MAY AND TODD THREE CHEERS FOR MAY AND TODD, THEY DO A GREAT JOB FOR THE AIRPORT. I DID WANNA MAKE ONE MORE LITTLE MENTION. OH, SURE. YEAH. WE, UM, WE HAD ONE OF OUR BUDGET TEAM MEMBERS WHO TOOK THE, THE VER MEPO AND, AND RETIRED AND I WANTED TO GIVE HIM CREDIT. UNFORTUNATELY, HE PASSED AWAY THREE DAYS OR FOUR DAYS AFTER HE RETIRED. OH MY. SO I DIDN'T MO RIVERA. I DID WANNA RECOGNIZE HIM. WELL, WHAT'S HIS NAME? MO RIVERA. MO RIVERA. REST IN PEACE. THAT IS THE SADDEST THING I'VE EVER HEARD. YEAH, HE WAS GREAT. YEAH, HE WAS A GREAT GUY. I'M, YEAH. THANK YOU SO MUCH FOR LETTING US KNOW. THAT IS REALLY DEVASTATING NEWS. YES. UM, THANK YOU. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.