[00:00:01]
MOMENTS.ARE WE, ARE WE READY? YEAH, WE'RE READY.
IF YOU CAN GO AHEAD AND TAKE YOUR SEATS.
WE'LL GO AHEAD AND GET STARTED.
I KNOW WE'VE GOT, UH, A NUMBER OF, UH, SCHEDULING ISSUES TODAY, SO WE'LL TRY TO MOVE FORWARD AND GET THROUGH THIS PRESENTATION.
EFFICIEN, UM, TIME IS 1:03 PM ON THE 11TH DAY OF MAY, 2023.
WE'LL CALL OUR MEETING TO ORDER.
MADAM CLERK, COULD YOU READ THE ROLE? COUNCIL MEMBER BRAVO.
COUNCIL MEMBER MCKEE RODRIGUEZ.
PRESENT, COUNCIL MEMBER VERAN.
COUNCIL MEMBER COURAGE PRESENT.
ALRIGHT, GOOD AFTERNOON EVERYBODY.
I KNOW THERE'S A NUMBER OF, UH, SCHEDULING CHALLENGES TODAY, SO WE'RE GONNA MOVE EXPEDITIOUSLY THROUGH THIS PRESENTATION.
[ ITEMS ]
ONE ITEM, AND THAT IS THE BRIEFING ON THE TERMINAL DEVELOPMENT PROGRAM.SO, TO GET US STARTED, LEMME TURN IT OVER TO CITY MANAGER ERIC WALSH.
UM, T UH, THIS AFTERNOON WE'VE GOT, UM, A QUICK UPDATE ON A NUMBER OF AIRPORT RELATED ITEMS. WE'LL HAVE THE POSTS SOLICITATION BRIEFING FOR THE GROUND TERMINAL CONTRACT THAT WILL BE COMING TO COUNCIL HERE IN A COUPLE OF WEEKS.
UH, SECONDLY, THE PRES SOLICITATION ON THE CONSTRUCTION MANAGER AT RISK SOLICITATION THAT'LL BE ISSUED IN JUNE FOR THE TERMINAL COMPLEX.
AND THEN LASTLY, ACTUALLY, THE, THE THIRD PART I'LL DO, IT'S REGARDING A DELEGATION OF AUTHORITY ON SOME OF THESE LARGER PROJECTS AND THAT WE'RE PROPOSING GOING FORWARD.
SO LEMME KICK IT OFF, HAND IT OFF TO JESUS TO KICK OFF.
HEY, UH, GO AHEAD AND WORK THROUGH IT.
WE CAN HEAR THE, THE SWEET SOUND OF DEMOCRACY IN ACTION.
WE HAVE SOME STUDENTS WITH US TODAY THAT HAVE PARTICIPATED IN A WALKOUT TO RECOGNIZE, UH, AND, AND ALSO CALL FOR THIS COUNTRY AND THE STATE TO END GUN VIOLENCE.
SO WE ARE NOT GONNA INTERRUPT THEM, BUT WE'RE GONNA WORK THROUGH THIS, UH, PRESENTATION AT THE SAME TIME, THE BEAUTY OF OUR COUNTRY.
THANK YOU MAYOR AND COUNCIL FOR ALLOWING ME TO SPEAK, UH, THIS AFTERNOON.
AS YOU MAY REMEMBER, WHEN WE KICKED OFF THE TERMINAL DEVELOPMENT PROGRAM ALMOST A YEAR AGO NEXT WEEK, WE PROMISED TO KEEP THIS BODY UPDATED ON EVERYTHING ASSOCIATED WITH THE T D P, AND WE REITERATED OUR COMMITMENT TO YOU IN NOVEMBER OF 2021 TO INITIATE THE IMPLEMENTATION OF OUR STRATEGIC DEVELOPMENT PROGRAM.
SINCE MAY 18TH, 2022 LAST YEAR, WE'VE MADE SOME HUMONGOUS STRIDES TO MOVE FORWARD TO GET TO WHERE WE'RE AT TODAY.
WE AWARDED THE ADVANCED TERMINAL PLANNING CONTRACT IN FEBRUARY OF 15TH.
IN THE B SESSION, WE SOLICITED AND YOU APPROVED THE AWARD OF SEVERAL KEY CONTRACTS TO ENSURE WE HAD THE SUBJECT MATTER EXPERTS IN PLACE SO WE COULD STRATEGIZE OUR NEXT STEPS IN A STRUCTURED AND ORGANIZED EFFORT.
AND WE ALSO AWARDED OUR EXECUTIVE PROGRAM MANAGER CONTRACT, THE PROJECT MANAGEMENT CONSTRUCTION MANAGEMENT CONTRACT, THE MASTER ARCHITECT AND OTHER CONTRACTS TO HELP US DEVELOP AND DESIGN PROJECTS TO SUPPORT OUR STRATEGIC DEVELOPMENT PROGRAM.
TODAY'S FOCUS WILL BE ON TWO KEY CONTRACTS TO HELP US TAKE THE NEXT STEPS IN THIS PROGRAM TO DELIVER ON OUR COMMITMENT TO THE RESIDENTS OF OUR REGION.
TODAY, I WILL PROVIDE A POST ELICITATION BRIEFING ON THE TRIMBLE, A GROUND LOAD FACILITY, FOLLOWED BY THE PRES SOLICITATION BRIEFING FOR THE CONSTRUCTION MANAGER AT RISK FOR THE NEW TERMINAL FACILITY THAT WE DISCUSSED AT THE FEBRUARY 15TH B SESSION.
AND THEN I WILL TURN IT OVER TO CITY MANAGER ERIC WALSCH, WHO WILL PRESENT ON THE PROPOSED DELEGATION ORDINANCE, THE TURAY GROUND LOADING FACILITY.
AND THE VEHICLE 20 GATE RELOCATION PROJECT IS THE FIRST PROJECT TO BE CONSTRUCTED UNDER THE STRATEGIC DEVELOPMENT PROGRAM THAT YOU APPROVED IN 2021.
I THINK BACK TO THAT NOVEMBER EVERY DAY WHEN ERIC SAID, OKAY, THIS IS THE BEGINNING, LET'S GET STARTED.
AND THAT'S EXACTLY WHAT WE BRING FORTH TO YOU TODAY.
THE EXECUTION PROCESS OF US MAKING THINGS HAPPEN.
THIS PROJECT PROVIDES US WITH ADDITIONAL GATE CAPACITY TO SUPPORT OUR CURRENT AND FORECASTED AIR SERVICE NEEDS WHILE THE NEW TERMINAL FACILITIES IS BEING CONSTRUCTED THROUGH THE SECOND QUARTER OF 2028 AS A GROUND LOADING FACILITY.
THIS MODEL IS VERY ATTRACTIVE TO ALL INTERNATIONAL CARRIERS, AND AS YOU ALL KNOW, CE WE RECEIVED A $20 MILLION
[00:05:01]
GRANT FROM THE FEDERAL AVIATION ADMINISTRATION UNDER THE BIPARTISAN INFRASTRUCTURE LAW.THIS PROJECT WAS BRIEFED TO CITY COUNCIL AS PART OF THE MAY 15TH B SESSION IN, UH, LAST YEAR.
THE DESIGN BUILD PROJECT WILL COMPLETE THE DESIGN FOR THE FACILITY LOCATED ON THE SOUTH END OF TERMINAL A AND CONSTRUCT A NEW FACILITY WITH UP TO FIVE GATES WITH CONCESSION SPACE AND A CONNECTION TO THE EXISTING FEDERAL, FEDERAL INSPECTION STATION.
THE CUSTOMS AREA FOR INTERNATIONAL ARRIVALS.
THE PROJECT WILL ALSO RELOCATE AN EXISTING, WHAT WE CALL A SADA GATE GATE 20 FROM ITS EXISTING LOCATION.
WE HAVE ALSO ACCEPTED THE ADDITIVE ALTERNATIVE FOR REMAIN OVERNIGHT AIRCRAFT PARKING EXPANSION, WHICH IS ADJACENT TO THE FACILITY AND PROVIDE ADDITIONAL REVENUE GENERATING OPPORTUNITIES FOR THE AIRPORT SYSTEM.
THE DESIGN BUILD SERVICES SOLICITATION WAS RELEASED ON DECEMBER 21ST, 2022.
FIVE SUBMITTALS WERE RECEIVED.
ONE WAS DETERMINED TO BE NON-RESPONSIVE FOR FAILURE TO MEET THE D B E REQUIREMENTS ON MARCH 7TH.
THE EVALUATION COMMITTEE, WHICH INCLUDED ASSISTANT CITY MANAGER, JEFF COYLE, MYSELF, THE AVIATION DEPARTMENT'S CHIEF DEVELOPMENT OFFICER, SHANE HARSON, SENIOR ARCHITECT FOR THE AVIATION DEPARTMENT, JAVIER CASTRO, FREDERICK FOREHAND, THE IT MANAGER FOR I T S D AND SARAH STUMP, A LICENSED ARCHITECT SPECIALIZING IN AIRPORT DEVELOPMENT.
UNDER THE ANSWER ADVISORY, WE MET AND SCORED THE FOUR PROPOSALS BASED ON THE PUBLISHED CRITERIA, THE 50 POINTS FOR EXPERIENCE, BACKGROUND, AND QUALIFICATIONS, THE 40 POINTS FOR PROJECT APPROACH AND MANAGEMENT PLAN, AND THEN 10 POINTS FOR THE D D B E PARTICIPATION.
THE COMMITTEE SELECTED THE TWO HIGHEST SCORING FIRMS FOR HANSEL PHELPS AND JE DUNN FOR THE SECOND PHASE OF EVALUATION FOR THE CONTRACT VALUED AT 61.7 MILLION.
HANSEL PHELPS AND JE DUNN SUBMITTED THEIR PROPOSALS, AND BOTH FIRMS WERE INTERVIEWED BY THE EVALUATION COMMITTEE ON APRIL 12TH.
THIS EVALUATION COMMITTEE SCORED THEM ON THE PUBLISHED CRITERIA OF PROPOSED DESIGN METHODOLOGY.
20 POINTS PROPOSED CONSTRUCTION METHODOLOGY, 20 POINTS.
DB TEAMS DEMONSTRATED HISTORY OF SUCCESSFUL COLLABORATION, 20 POINTS, AN OVERALL VALUATION OF THE FIRM AND TEAM, AND ITS ABILITY TO PROVIDE THE REQUIRED SERVICES.
10 POINTS, PROPOSED FEES FOR GENERAL CONDITIONS, OVERHEAD AND PROFIT 20 POINTS, AND D B E 10 POINTS.
HANSEL PHELPS SCORED THE HIGHEST NUMBER OF POINTS AND WAS RECOMMENDED BY THE COMMITTEE FOR THIS CONTRACT.
WE LOOK FORWARD TO BRINGING THIS CONTRACT AWARD FOR YOUR CONSIDERATION NEXT WEEK.
HANSEL PHELPS HAS COMPLETED OTHER DESIGN BUILD SERVICE CONTRACTS AT AIRPORTS, INCLUDING THE MAIN TERMINAL CURBSIDE EXPANSION AT TAMPA CONCOURSE D AND AIRPORT WINGS AT NASHVILLE HARVEY MILK TERMINAL ONE AT SAN FRANCISCO, AND TERMINAL AREA IMPROVEMENTS AT SAN JOSE INTERNATIONAL AIRPORT.
THE NEXT ITEM THAT WE BRING FOR YOUR CONSIDERATION, AS I MENTIONED EARLIER, THE GROUND LOADING FACILITY WILL PROVIDE ADDITIONAL GATE CAPACITY TO SUPPORT OUR PASSENGERS GROWTH WHILE WE CONSTRUCT A NEW TERMINAL.
IT'S A BRIDGE AS WE BUILD THE GROUND LOADING FACILITY AND BRIDGE INTO THE NEW TERMINAL COMPLEX, WHICH IS STILL SCHEDULED FOR COMPLETION AT THE END OF 2028 IN MARCH.
TODAY I HAVE THE PRES SOLICITATION BRIEFING FOR THE NEW TERMINAL FACILITY FOR THE SAN ANTONIO AIRPORT SYSTEM.
AT OUR FEBRUARY 15TH B SESSION, WE BROUGHT FORWARD THE DECISION TO UTILIZE THE CONSTRUCTION MANAGER AT RISK DELIVERY METHOD FOR THE NEW TERMINAL WHO WILL WORK WITH THE MASTER ARCHITECT IN THE CITY TO BUILD THE NEW TERMINAL COMPLEX.
THE REASONINGS FOR THIS DELIVERY METHOD INCLUDED OWNER CONTROL OF DESIGN, SENSE OF PLACE, LEVEL OF SERVICE OF OUR PASSENGERS AND PRIORITIES FOR THE SAN ANTONIO INTERNATIONAL AIRPORT SYSTEM.
THE CONSTRUCTION MANAGER AT RISK METHOD PROVIDES THE OPTIMUM LEVEL OF CONTROL OF THE DESIGN TO ENSURE THESE PRIORITIES ARE MET.
IT OFFERS A NUMBER OF DIFFERENT SCHEDULE FLEXIBILITIES THAT WE CAN TAKE ADVANTAGE OF AS WE DESIGN AND CONSTRUCT THESE PACKAGES TO SUPPORT A FAST TRACK METHODOLOGY FOR THE PROGRAM, AS WELL AS PROVIDING OFF-RAMPS FOR THE DESIGN AND CONSTRUCTION AT VARIOUS INTERVALS TO MAXIMIZE SCHEDULE FLEXIBILITY.
IT ALSO CREATES WORK PACKAGES AND PHASING FLEXIBILITY WHERE THE CONSTRUCTION MANAGER AT RISK PROVIDES FLEXIBILITY TO CREATE WORK PACKAGES AND PHASING OPPORTUNITIES THAT POSITION FOR OR RESPOND TO FUNDING OPPORTUNITIES LIKE FEDERAL GRANTS AND TARGET CONSTRUCTION WORK PACKAGES THAT PROMOTE DISADVANTAGED BUSINESS OPPORTUNITIES.
WHILE THE C M R HAS ANTICIPATED TO START IN JANUARY OF 2024, WE HAVE ALREADY INITIATED
[00:10:01]
THE SERVICE OF THE MASTER ARCHITECT FIRM, WHICH CITY COUNCIL AWARDED IN MARCH.BY PROCURING THIS MASTER ARCHITECT EARLY, WE ARE ABLE TO TAKE IT THE NEXT STEP IN THE NEW TERMINAL DESIGN FROM CURRENT BLOCK DIAGRAMS TO SPECIFIC SPACE PLANNING FOR AIRLINES, CONCESSIONS AND INFRASTRUCTURE NEEDS SUCH AS THE M E P, MECHANICAL, ELECTRICAL, AND PLUMBING SYSTEMS, PASSENGER FLOWS, HOLD ROOMS, RESTROOMS, ET CETERA.
THE FIRM WILL ALSO PROVIDE MUCH OF THE PRELIMINARY GEOTECH AND SURVEYING WORK WE NEED FOR THE NEW TERMINAL AND ROADWAY EXPANSION PROJECTS, AS WELL AS THE MODELING AND OPTIONS OF THE CENTRAL UTILITY PLANT ENHANCEMENTS AND BAGGAGE HANDLING SYSTEMS. WHILE THE C M R IS OUT FOR SOLICITATION AND EVALUATION, THE MASTER ARCHITECT CONTINUE ON THE DESIGN FOR UTILITIES LOCATIONS AND EXPANSION IT WORK AND FOUNDATION AND STRUCTURAL STEEL OPTIONS FOR THE NEW TERMINAL AND THE DEMOLITION PACKAGES FOR THE EXISTING BUILDINGS FOR THE NEW TERMINAL AND, AND ENABLING FACILITIES AS WELL AS WAY FINDING.
AND THROUGHOUT THIS PROCESS, THIS FIRM WILL WORK WITH OUR TEAMS TO UPDATE THE PROJECT COST ESTIMATES.
THE SOLICITATION IS LIKELY THE LARGEST IN THE CITY'S HISTORY AND WILL INCLUDE A NUMBER OF DIFFERENT EFFORTS.
THE CONSTRUCTION OF A UP OF AN UP TO 17 GATE CONCOURSE, THE EXPANSION OF ELEVATED ROADWAYS, A GROUND TRANSPORTATION CENTER, THE CENTRAL UTILITY PLANT ENHANCEMENTS, THE OVERNIGHT PARKING AND RELATED DEMOLITION PREPARATION SITE WORK, ALL UTILITIES INCLUDED WITH AN ESTIMATED CONTRACT VALUE OF 700 TO 1 BILLION.
THE FUNDING SOURCES ARE FEDERAL GRANTS, AVIATION CAPITAL FUNDS, PASSENGER FACILITY CHARGES, AND INTERIM AIRPORT FINDING AS LONG AS DEBT ISSUANCE, AS WELL AS DEBT ISSUANCE.
THIS IS A VISUAL OF WHAT'S ENCOMPASSED AS YOU LOOK AT THE ENTIRE FACILITY AND THE ENABLING FIRST WORKS THAT WE WILL BE WORKING ON STARTING FROM THE LEFT, THE NEW, ALL THE ADDITIONAL OVERNIGHT PARKING, THE REMAIN OVERNIGHT PARKING, THE R O N AREAS, THE GROUND TRANSPORTATION CENTER, THE UP TO 17 GATE EXPANSION FOR THE, UH, ASSOCIATED TERMINAL SPACE AND THE EXPANDED ROADWAYS.
WE STARTED OUR OUTREACH IN APRIL SO THE PRIME CONTRACTORS COULD START THEIR TEAM BUILDING EFFORTS.
DURING THE APRIL 20TH INDUSTRY DAY, WE HAD OVER 350 ATTENDEES, PRIMES AND SUB CONSULTS FROM SAN ANTONIO AND ACROSS THE NATION.
BESIDES PROVIDING A NETWORK AND OPPORTUNITY FOR THE FIRMS, IT ALSO PROVIDED OPPORTUNITIES FOR FIRMS TO LEARN ABOUT OUR CITY PROCESS FROM FINANCE, ECONOMIC DEVELOPMENT, AND AVIATION.
I WANT TO THANK THE MAYOR, THE CITY MANAGER, FOR TAKING TIME BEFORE A CITY COUNCIL MEETING TO SHARE THEIR EXCITEMENT ON THE TERMINAL DEVELOPMENT PROGRAM, WHICH THESE FIRMS WITH THE, WITH THESE FIRMS, IT MADE A VERY STRONG IMPRESSION AS WE DEVELOPED THE SCOPE DEVELOPMENT FOR THE SEYMOUR.
WE WANTED TO TAKE A MOMENT TO HIGHLIGHT THE DEVELOPMENT OF THIS SPECIFIC SOLICITATION DOCUMENT.
WE STARTED THIS PROCESS IN FEBRUARY WITH KEY AVIATION TEAMS, INCLUDING OUR TERMINAL DEVELOPMENT.
BESIDES AVIATION, WE HAVE WORKED HARD HAND IN HAND AND HARD WITH OUR FINANCE PROCUREMENT PARTNERS, THE CITY ATTORNEY'S OFFICE AND OTHERS.
THIS PROCESS HAS INCLUDED SPECIALIZED TRAINING ON SEYMOUR TRAINING WITH EVERY MEMBER OF THE EVALUATION TEAM.
THIS DOCUMENTS, THESE DOCUMENTS HAVE ALREADY GONE THROUGH FIVE IN-DEPTH REVIEWS AND INCLUDE A PAGE TURN LATER THIS MONTH.
THE CONSTRUCTION, THE, THE CONSTRUCTION MANAGER AT RISK SOLICITATION PROCESS IS A TWO PHASE APPROACH.
IN THE NEXT SLIDE, I'LL PROVIDE THE, I'LL PROVIDE AND EXPLAIN THIS PROCESS WITH THE DATES, BUT WANTED TO SHOW YOU THE EVALUATION CRITERIA FOR EACH PHASE.
PHASE ONE, THE EVALUATION COMMITTEE FOCUSES ON THE EXPERIENCE, BACKGROUND, AND QUALIFICATIONS OF THE C M A R, INCLUDING SUB CONSULTANTS, THE QUALIFICATIONS FOR KEY PERSONNEL, AND THEN GENERAL PROPOSED WORK PLAN APPROACH.
EACH OF THOSE POINTS REPRESENT THE NUMBER OF POINTS FOR EACH OF THOSE AREAS.
PHASE TWO ENCOMPASSES THE REQUEST FOR PROPOSALS, A DETAILED PROPOSED WORK PLAN AND APPROACH WORTH 50 POINTS, PROPOSED COSTING METHODOLOGIES WORTH 30 POINTS, AND THE D B E ENTERPRISE WORTH 20 POINTS.
THE SCHEDULE THAT YOU SEE BEFORE YOU STARTS AS SOON AS POSSIBLE.
THE SLIDE SHOWS OUR AGGRESSIVE SCHEDULE FOR THE SOLICITATION.
WE WILL RELEASE THE SOLICITATION NEXT MONTH WITH THE RESPONSES TO OUR REQUESTS FOR QUALIFICATIONS DUE 45 DAYS LATER ON JUNE, JULY 21ST.
THE REASONS WE HAD WE HELD THE INDUSTRY DAY IN APRIL WAS TO PROVIDE THAT OPPORTUNITY FOR PRIMES AND SUBCONTRACTORS TO LEARN MORE ABOUT OUR PROGRAM AND TO START THEIR TEAM BUILDING
[00:15:01]
FOLLOWING THE DUE DILIGENCE.THE EVALUATION COMMITTEE THEN REVIEW OR WILL THEN REVIEW THE SUBMITTALS THAT INCLUDE STATEMENTS OF RELEVANT EXPERIENCE AND SCORE THEM BASED ON THE PUBLISHED CRITERIA.
AS WE JUST MENTIONED, BASED ON THOSE SCORES, THE EVALUATION COMMITTEE WILL INVITE A SHORT LIST OF RESPONDENTS TO PROVIDE PROPOSALS AND THEN INTERVIEW THOSE TEAMS BASED ON PHASE TWO CRITERIA MENTIONED.
THE DATE FOR THE INTERVIEWS WILL BE INCLUDED IN THE SOLICITATION DOCUMENT, SO THE FIRMS KNOW TO BE READY FOR THE INTERVIEWS BASED ON THE SCORING.
THE EVALUATION COMMITTEE WILL THEN RECOMMEND THE FIRM TO INITIATE NEGOTIATIONS.
WE LOOK TO BRING BACK TO CITY COUNCIL FOR A POST ELICITATION, UH, IN A B SESSION IN NOVEMBER, FOLLOWED BY CITY COUNCIL CONSIDERATION OF THE AWARD LATER IN NOVEMBER OR DECEMBER OF THIS YEAR.
I WANT TO TAKE THIS OPPORTUNITY TO REMIND ALL THE INTERESTED FIRMS AND THEIR SUBCONTRACTORS TO PLEASE READ THE LANGUAGE ON THE CITY'S POLICY ON THE PROHIBITION OF CONTRIBUTIONS FOR HIGH PROFILE CONTRACTS.
IT WILL BE IN THE SOLICITATION DOCUMENT AND IS ON THE CITY'S WEBSITE.
IF ANY OF THE PARTIES DO NOT COMPLY, THE TEAM WILL BE DEEMED NON-RESPONSIVE AND WILL BE UNABLE TO COMPETE FOR THIS CONTRACT.
WE HAVE AN OUTSTANDING EVALUATION COMMITTEE FOR THIS CONTRACT.
DEPUTY CITY MANAGER MARIA VILLA GOMEZ, ASSISTANT CITY MANAGER, JEFF COYLE, MYSELF, DEPUTY DIRECTOR TIM CROLEY, EXECUTIVE PROGRAM MANAGER, MR. DRE BRANDENBURG.
THE A S D C HAS BEEN A LONG TERM ADVOCATE FOR EVERYTHING THAT WE HAVE DONE WITH THIS CON WITH, WITH, WITH THIS DEVELOPMENT DATING BACK TO 2018 WHEN ALL OF THIS STARTED, COULD NOT BE MORE EXCITED TO HAVE JOHN DIXON, THE CHAIR OF THE A S D C AND MR. GENERAL ED RICE, ALSO AS PART OF THE A S D C AS PART OF THIS, THE SELECTION PROCESS, AN AIRLINE TECHNICAL REPRESENTATIVE, DOREEN DANIELSON, WHO IS PART OF WORKING WITH EACH OF THE AIRLINES WILL ALSO BE A VOTING MEMBER.
AND THEN THE DEPUTY GENERAL MANAGER OF INFRASTRUCTURE AT THE US' LARGEST AIRPORT IN THIS NATION, MR. FRANK RUCKER FOR ATLANTA HARTSFIELD INTERNATIONAL.
WE WILL BE SEEKING FEDERAL FUNDS FOR THIS PROGRAM, INCLUDING THE NEW TERMINAL GROUND TRANSPORTATION FACILITY AND ROADWORK TO BE ELIGIBLE FOR THE FEDERAL GUIDELINES.
WE WILL RELEASE THIS SOLICITATION UNDER THE D B E ENTERPRISE PROGRAM.
THE D B E GOAL FOR THIS PRE-CONSTRUCTION ONLY IS 11.33%.
THIS PERCENTAGE IS BASED ON THE RELATIVE AVAILABILITY OF THE CERTIFIED DBES IN THE SAN ANTONIO METROPOLITAN STATISTICAL AREA THAT PERFORMS THE WORK REQUIRED IN THE PRE-CONSTRUCTION PHASE, CONSTRUCTION, ESTIMATING, ADMINISTRATIVE MANAGEMENT, CONSULTING SERVICES, CONSTRUCTION MANAGEMENT, AND OTHER MANAGEMENT SERVICES.
EACH RESPONDENT WILL RE SUBMIT A D B E COMPLIANCE PLAN AND STATEMENT OF RESPONSIBILITIES WITH THEIR RESPONSE, WHICH WILL BE REVIEWED DURING THE EVALUATION PROCESS.
ADDITIONALLY, THE CITY HAS DETERMINED THAT SUBCONTRACTING OPPORTUNITIES WILL ARISE DURING THE CONSTRUCTION PHASE OF THIS PROJECT.
HOWEVER, THE SPECIFIC SCOPES OF WORK FOR EACH CONSTRUCTION PACKAGE AND THE MAGNITUDE OF THE SCOPES OF WORK CANNOT BE DETERMINED UNTIL THE DE UNTIL THE DESIGN FOR THE PROJECT HAS BEEN COMPLETED.
WHEN THE DESIGN DOCUMENTS ARE SUFFICIENTLY COMPLETED, THE CITY WILL ESTABLISH APPROPRIATE D B E GOALS FOR EACH PACKAGE, AND THE CONSTRUCTION MANAGER AT RISK FIRM WILL SUBMIT A D B E COMPLIANCE PLAN MEETING THE GOALS OF DOCUMENTATION, DETAILING THEIR GOOD FAITH EFFORTS TO MEET THE ESTABLISHED GOALS.
THROUGHOUT THIS PROCESS, WE WILL WORK WITH THE SOUTH CENTRAL REGION CERTIFICATION AGENCY TO CONTINUE TO HELP ELIGIBLE FIRMS BECOME D B E CERTIFIED.
I'LL NOW TURN IT OVER TO CITY MANAGER ERIC WALSH.
UM, SO, AND, AND WE'VE TALKED ABOUT THIS, UM, UH, SEVERAL TIMES IN THESE BRIEFINGS.
UH, ONE OF THE THINGS THAT WE'VE DONE TO PREPARE FOR THE PROJECT IS LOOK AT HOW OTHER AIRPORTS THAT HAVE GONE THROUGH SIMILAR PROJECTS HAVE, UH, SET UP AND ARRANGED THE MANAGEMENT AND OVERSIGHT TO ENSURE EXECUTION, BUDGET AND TIMELINE.
UM, YOU KNOW, ONE OF THE KEY ASPECTS THAT WE DISCOVERED AS WE WERE, AS WE'RE PREPARING FOR THIS, IS HOW THE CITY OF SAN ANTONIO EFFECTIVELY DEALS WITH, UM, THE COUNCIL APPROVED CONTINGENCY AMOUNTS WHEN WE BRING AN ITEM FORWARD TO YOU FOR, UH, CONSTRUCTION.
UM, AND, AND WHAT HAPPENS NOW IS THAT WHEN WE BRING THE ITEM TO COUNCIL FOR APPROVAL OF CONSTRUCTION, THE COUNCIL APPROVES IT A CONTINGENCY AMOUNT.
BUT AS THE PROJECT GOES ON, UM, AND THE USE OF CONTINGENCY OCCURS, WE COME BACK TO THE COUNCIL TO ALLOCATE THE COUNCIL APPROVED CONTINGENCY, A DOLLAR, $10, A HUNDRED THOUSAND DOLLARS.
UM, AND, AND WHAT THAT DOES IS TAKES TIME,
[00:20:01]
UM, FROM BOTH ENDS OF THE PROJECT, UM, IT PUTS THE PROJECT ON HOLD, POTENTIALLY PENDING THE DECISION.IT POTENTIALLY PUTS CONTRACTORS IN A POSITION WHERE THEY ARE REDIRECTING WORK OR DIVERTING RESOURCES ON ANOTHER ASPECT OF THE PROJECT.
UM, FRANKLY, YOU KNOW, I THINK THAT, UH, AS WE'VE TALKED ABOUT IMPROVING OUR CONTRACTS, UM, FOR HORIZONTAL PROJECTS, IT'S ONE OF THE THINGS WE MIGHT WANNA LOOK AT TODAY.
WHAT WE'RE RECOMMENDING THAT IS THAT AS WE GO THROUGH THIS PROJECT, THAT WE, UH, CHANGE THAT WHEN YOU APPROVE THAT CONTRACT LATER ON IN THE YEAR, UM, THE, THE REAL COST OF THIS WILL BE, UM, THIS IS JUST CONSTRUCTION COSTS.
THIS DOES NOT INCLUDE CARRYING COST OR INTEREST COSTS, BUT EVERY DAY DURING THE CONSTRUCTION THAT WE DELAY IN TERMS OF USE OF CONTINGENCY, AND THERE WILL BE ISSUES THAT COME UP.
THAT'S WHY WE HAVE CONTINGENCIES.
UM, WE'RE ESTIMATED $800,000 A DAY, SO TIME IS MONEY HERE, AND WE'LL WANNA MAKE SURE THAT WE'RE BEING EFFECTIVE IN TERMS OF MAKING SURE THAT WE'RE ADDRESSING THE ISSUES THAT COME UP WITHIN THAT COUNCIL APPROVED CONTINGENCY.
AGAIN, YOU'RE, YOU'RE APPROVING THIS UPFRONT.
UM, WE WANNA MAKE SURE THAT IT GIVES US THE ABILITY, UH, AND THE CONTRACTORS THE ABILITY TO MAKE TIMELY DECISIONS, UH, PROVIDE IMMEDIATE SOLUTIONS, PROVIDE IMMEDIATE DIRECTION, UH, REDUCING THE OVERALL FINANCIAL RISK, UH, OF THESE CONSTRUCTION PROJECTS.
AS YOU SAW FROM JESUS'S SLIDE, THIS WILL BE THE LARGEST CONSTRUCTION PROJECT WE'VE EVER UNDERTAKEN.
AND THE COUNCIL, WHEN YOU, WHEN WE HAVE IT IN FRONT OF YOU, WE WILL, WE WILL LAY OUT WITHIN THAT AMOUNT THE CONTINGENCY, JUST LIKE WE DO FOR EVERY STREET PROJECT AND DRAINAGE PROJECT BEFORE YOU, UM, PART OF, UH, AND I THINK SOME OF THE COUNCIL, UH, MOST OF THE COUNCIL HEARD THIS, UH, LAST WEEK ON ANOTHER TOPIC.
UM, THIS IS ALSO CRITICAL FROM, UM, THE RESPONDENT'S STANDPOINT.
IF THEY KNOW WE'RE SET UP TO ADMINISTRATIVELY EFFICIENTLY HANDLE THESE PROJECTS, THEN, UM, I'M HOPING WE SEE THAT IN THE RESPONSES.
UM, BECAUSE RESPONDENTS WILL BUILD IN ANTICIPATED DELAY ADMINISTRATIVELY, AND, AND THIS PROJECT IS TOO BIG TO, TO ALLOW THAT TO HAPPEN.
SO WHAT WE'RE RECOMMENDING IS THAT, UM, THAT WE, UH, HAVE A PROPOSED DELEGATION OF AUTHORITY FOR, UM, ME TO APPROVE CHANGE ORDERS UP TO THE TOTAL AMOUNT ESTABLISHED CONTINGENCY THAT IS APPROVED BY THE COUNCIL.
ANYTHING ABOVE THAT CONTINGENCY'S GOTTA COME BACK TO COUNCIL, ANYTHING ABOVE THAT AMOUNT.
UM, AND, AND THAT WE APPLY IT, UH, ONLY FOR THE T D P.
I WILL TELL YOU THAT, THAT BASED THE, THE MORE WE LOOK AT IT, I CAN SEE THIS BEING, UM, APPLICABLE IN SOME OF OUR LARGER HORIZONTAL PROJECTS THAT WE'LL BE CONTRACTING HERE IN THE NEXT COUPLE OF YEARS.
I'M THINKING MARBACH AND FOUR 10, WHICH IS A, UH, ALMOST A $40 MILLION STREET AND DRAINAGE PROJECT.
WE MAY WANT TO MAKE SOME, MAKE, MAKE SOME ADMINISTRATIVE CHANGES ON THAT.
UM, BUT, YOU KNOW, WE SEE THIS AS A PATH.
UM, THIS IS SOMETHING THAT OTHER AIRPORTS HAVE USED TO MAKE SURE THAT PROJECTS STAY ON TRACK, AND IT'S SOMETHING THAT WE'RE RECOMMENDING, UH, FOR APPLICATION OF THIS AIRPORT PROJECTS AS WE GO FORWARD.
JESUS WILL KIND OF COVER THE NEXT STEPS, THE WORK THAT WAS DONE BY THE A S D C, UM, THE AIRPORT ADVISORY COMMISSION.
SOME OF THOSE REPRESENTATIVES ARE HERE TODAY AS WELL, SUPPORTING US, I THINK BACK TO WHEN I ARRIVED IN FEBRUARY OF 2020.
AND THE WORK THAT WE'VE BEEN ABLE TO DO DURING COVID TO ESTABLISH WHAT WE CONSIDER THE, THE FOUNDATION, IN ORDER FOR US TO EFFECTIVELY EXECUTE ON WHERE WE'RE GOING TODAY, THROUGH YOU ALL'S APPROVAL, WE WERE ABLE TO ADD THE THREE GATES INTO THE NEW TERMINAL COMPLEX THAT TOOK US TO 24 GATES.
WE WERE ABLE TO ADD NOW THE GROUND LOADING FACILITY, WE'RE RECEIVING 20 MILLION.
THE COUNCIL MEETING, UH, WILL BE BRINGING THAT DELEGATION OF AUTHORITY ORDINANCE CONTRACT FOR AWARD IN, IN THE G L F.
WE CALL IT THE G L F, THE GROUND LOADING FACILITY, UH, NEXT WEEK FOR YOUR APPROVAL TO MOVE FORWARD WITH THAT.
AND THEN THE NEXT BIG PIECE IS EXACTLY WHERE WE'RE AT TODAY, IS WE NOW HAVE, UH, AN E P M A P M C M, THE MASTER, UH, ARCHITECT OF RECORD THAT'S HERE AND NOW ESTABLISHING THE SOLICITATION FOR THE CONSTRUCTION MANAGER AT RISK FOR THE NEW TERMINAL FACILITY.
THAT BEGINS TO MOVE FORWARD WITH THE NEXT STEP OF THE NEW TERMINAL COMPLEX AND THE TRANSFORMATION OF THE NEW TERMINAL.
AND THEN THE POST ELICITATION BRIEFINGS LATE SUMMER AND FALL OF 2023, WE'LL BRING, AS WE'VE TALKED ABOUT, THE PARKING OPTIMIZATION AND THE CONSTRUCTION MANAGER AT RISK FOR THE NEW TERMINAL FACILITY.
THAT CONCLUDES OUR PRESENTATION.
THANK YOU SO MUCH FOR ALLOWING US TO BE HERE TODAY.
THANK YOU VERY MUCH FOR THE PRESENTATION.
AND, AND TO THE MEMBERS OF THE A
[00:25:01]
S D C WHO ARE HERE.THANK YOU FOR YOUR CONTINUED, UH, WORK AND ADVOCACY ON THIS PROGRAM.
UH, I DON'T HAVE ANYTHING TO ADD, ERIC.
I THINK THE CHANGES, UH, THAT HAS HAVE BEEN MADE INTO THE DEVELOPMENT PROGRAM BEFORE, AND THE ONES THAT WE'RE LOOKING AT NOW IN TERMS OF SPEEDING UP THE TIMELINE AND REDUCING COSTS OVERALL ARE GONNA, ARE GONNA BE A POSITIVE BENEFIT, NOT ONLY TO, UH, THE PROGRAM'S COMPLETION, BUT ALSO TO THE COSTS THAT ARE BORN ON THE CITY.
SO, UM, I GUESS THE ONLY CLARIFICATION I, I WOULD NEED, ERIC, IS, UM, IN TERMS OF THE, UH, PROJECTS THAT WE'RE LOOKING AT HERE, THE C M R AND THEN THE GROUND LOAD FACILITY, ALL THESE ARE ON TRACK.
THERE'S NO ADDITIONAL ACTION OTHER THAN WHAT WE JUST GOT BRIEFED ON FROM JESUS TO GET THIS GOING AND ESSENTIALLY GET SHOVELS IN THE GROUND.
YOU'LL SEE THE COUNCIL WILL GET THE, UM, THE GROUND LOAD FACILITY CONSTRUCTION PRO, UH, ITEM HERE WITHIN THE NEXT COUPLE OF WEEKS.
AND THEN, UH, WE'LL BE FOLLOWING THE TIMELINE ON THE, UH, ON THE C M R, BUT NO OTHER ACTION.
UM, GOT MARCH, 2028, CIRCLED IN BRIGHT RED ON MY CALENDAR.
UH, COUNCIL MEMBER MCKEY RODRIGUEZ.
THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION.
UM, I JUST HAVE A FEW QUESTIONS.
UH, I'M SUPPORTIVE OF A DELEGATION OF AUTHORITY ORDINANCE.
I'M WONDERING, AND IT SOUNDS LIKE WE HAVEN'T, BUT HAVE WE DONE THIS ANYTIME IN RECENT HISTORY? NO, I DON'T THINK SO.
COUNCILMAN, I, I AND I, WE DID, WE DIDN'T REALLY STUMBLE UPON THIS, UM, UNTIL WE STARTED SEEING HOW OTHER AIRPORTS DEAL WITH IT.
UM, BUT FRANKLY, I SEE IT COMPLETELY APPLICABLE TO A LOT OF OUR OTHER HORIZONTAL PROJECTS.
I, I, I, I WOULD, I WOULD LIKE TO SEE HOW IT WORKS AND THEN COME BACK AND WE, WE TALKED EARLIER IN THE YEAR ABOUT MAKING CHANGES ON OUR CONTRACTS ON HORIZONTAL PROJECTS.
UM, AND I THINK THAT MIGHT, MIGHT, UH, ALLOW US TO AVOID SOME OF THE, UM, UNNECESSARY TIME.
AND, AND I THINK, I THINK BASED ON WHAT WE HEARD LAST WEEK ON ANOTHER TOPIC, UH, SOMETIMES CONTRACTORS EXPECT THAT TIME, AND I DON'T THINK THEY SHOULD EXPECT THAT TIME WHEN THEY'RE DEALING WITH THE CITY.
THEY PROBABLY DON'T EXPECT THAT TIME WHEN THEY'RE WORKING FOR H E B OR FROST BANK, FOR SURE.
UM, I GUESS WHAT INTERESTS ME ABOUT THIS IS THAT YOU SORT OF FIGURED IT OUT BY RESEARCHING WHAT OTHER CITIES WERE DOING, UH, IN RELATION TO THEIR AIRPORT PROJECTS.
SOMEONE ON STAFF COULD LOOK INTO OTHER TYPES OF PROJECTS, REALLY LARGE CONSTRUCTION PROJECTS, THINK LIKE RAILROAD CROSSINGS OR F STREET RECONSTRUCTIONS, UM, AND SEE MAYBE THERE'S OTHER WAYS THAT PROJECTS CAN BE SPED ALONG OR, UH, CAN BE DONE MORE SUCCESSFULLY THAN WE'VE HAD.
WE'VE HAD EXPERIENCE WITH THE ATTORNEY'S OFFICE HAS BROUGHT IN A LAW FIRM TO HELP US WITH THAT.
AND THEN I'M BRINGING IN SOMEBODY TO HELP, UM, FROM OUTTA STATE WHO'S HAD EXPERIENCE ON CONSTRUCTION TO KIND OF GIVE US A ONE LOOK OVER AND SEE HOW, IF WE CAN TACKLE THESE A DIFFERENT WAY.
I THINK IT'S, IT'S PROOF THAT THERE'S ALWAYS ROOM TO GROW AND THAT SOMETIMES THE CITY ISN'T DOING SOMETHING THAT WE COULD BE DOING.
SO I, I, I LOVE THIS DIRECTION THAT WE'RE TAKING REGARDING THE NOVEMBER B SESSION.
DO WE EXPECT THE EVALUATION OF PROPOSALS TO TAKE THAT LONG? I, I SEE SEPTEMBER AS SORT OF THE, UM, CONCLUSION OF SCORING, BUT WOULD OCTOBER BE A REASONABLE TIME FOR THAT B SESSION? WELL, WE CAN MOVE THE TIMELINE UP TO FEBRUARY 28 IF WE CAN CUT OFF A MONTH, BUT YEAH, I MEAN, I THINK IT'S A PRO, I THINK IT'S A MATTER OF MAKING SURE WE GO THROUGH THE PROCESS.
IT'S A TWO PHASE PROCESS THAT WE WILL GO THROUGH, AND THEN THE INTERVIEW PROCESS, AND THEN BRINGING THAT FOR YOUR APPROVAL.
SO AS EFFECTIVELY AND EFFICIENTLY AS WE CAN MOVE, WE WILL GO THROUGH THAT.
WE ESTIMATE SOMETIME IN NOVEMBER, IF WE CAN GET IT DONE FASTER, WE'LL, WE'LL, WE'LL BRING IT TO COUNCIL SOONER.
I THINK JUST, WE'RE VERY INTERESTED IN GETTING THIS PROJECT MOVED ALONG AND SPEEDING THE PROCESS UP.
AND SO I, I WOULD BE, UH, SUPPORTIVE OF THAT.
AND THEN I KNOW WE ALWAYS GET THE QUESTION WITH THE AIRPORT, UM, HOW ARE WE GOING TO PAY FOR IT? AND THE ANSWER IS TYPICALLY THE SAME.
IT'S, WE'LL BE SEEKING FEDERAL FUNDS, AND THAT'S WHAT I HEARD TODAY.
UM, WHAT IS THE BACKUP PLAN? SHOULD WE NOT GET FEDERAL FUNDING OR SHOULD WE NOT GET AS MUCH AS WE NEED? WELL, WE WILL, WE WILL BE UTILIZING, UM, ANY FEDERAL FUNDS THAT WE CAN RECEIVE, BUT WE HAVE OUR OWN REVENUES THAT ARE GENERATED VERSUS WHETHER THAT BE, UH, AERONAUTICAL OR NON AERONAUTICAL REVENUES.
UH, ALONG WITH THAT, WE HAVE THE PASSENGER FACILITY CHARGES THAT WE RECEIVE, SO WE WILL BE UTILIZING THAT FUNDING AS WELL.
AND OBVIOUSLY, THE ISSUANCE OF DEBT, UH, WILL ALSO TAKE US TO BE ABLE TO AFFORD THIS.
AND THEY ARE NEGOTIATING NEW AIRLINE LEASE AGREEMENTS IN PARALLEL WITH THIS PROCESS, WITH THIS PROCESS.
SO THOSE AIRLINE LEASE AGREEMENTS WILL BE COMING TO THE COUNCIL NEXT YEAR.
UM, UM, ALL THE REVENUE THAT'S COLLECTED AT THE RE AT THE AIRPORT IS WHAT WE'RE USING TO, TO FUND THE CONSTRUCTION.
I FEEL LIKE I GET A, A BRIEFING ON THE AIR, ANY ON AIRPORT, UH,
[00:30:01]
THE NEXT ONE.COUNCIL MEMBER MCKEE RODRIGUEZ, COUNCIL MEMBER RRO GARCIA.
AND TO EVERYONE WHO'S HERE FOR ALL OF YOUR SUPPORT AND YOUR HARD WORK ON THIS.
UM, I JUST HAVE A QUICK QUESTION.
I KNOW THAT IT'S TEMPORARY, THE GROUND LOAD FACILITY.
HOW, HOW DO WE KNOW HOW LONG TEMPORARY IS? WELL, AS WE REFERENCE IT, TEMPORARY, UH, COUNCILWOMAN, THERE ARE A NUMBER OF PHASING INITIATIVES THAT ARE BEING TAKEN.
UM, HENCE THE REASONING WHY WE ARE CONNECTING IT TO THE EXISTING, UH, F I S FACILITY TO BE ABLE TO UTILIZE FOR DOMESTIC AND INTERNATIONAL USE.
UM, AS WE GO THROUGH, AS WE LOOK BACK INTO WHAT WE'VE DONE, UH, OVER MANY, MANY YEARS, UH, WE NEED ADDITIONAL CAPACITY.
JUST Y JUST, JUST YESTERDAY ALONE, WE WERE 23% ABOVE 2019 NUMBERS ON THE TOTAL NUMBER OF TRAFFIC THAT IS COMING IN AND OUT OF OUR AIRPORT.
UM, WE LOOK FORWARD TO JULY, POSSIBLY GOING FOR THE FIRST TIME, OVER 1 MILLION PASSENGERS IN ONE MONTH AT SAN ANTONIO INTERNATIONAL AIRPORT.
SO IT, WE, WE CLASSIFY IT AS TEMPORARY, BUT AS WE CONTINUE TO GROW, THESE ARE EFFORTS AND INITIATIVES THAT WE'VE BEEN THINKING ABOUT OVER THE LAST TWO YEARS TO ENSURE THAT WE CAN EXPAND AND GROW CAPACITY.
UM, I CAN'T GIVE YOU A DEFINITIVE ANSWER ON WHAT TEMPORARY IS, BUT WHEN WE BUILD THE FACILITY, WE PLAN FOR IT TO BE THERE FOR QUITE A WHILE.
AND I NOTICED, UM, IN THE DRAWINGS YOU HAVE A, A SOMEWHAT CONNECTED, AND I'M ASSUMING, SO WE'LL BE ABLE TO OPERATE, OPERATE NORMALLY IN INCLEMENT WEATHER.
AND THEN MY LAST ONE IS JUST, CAN YOU REMIND ME, I DON'T KNOW WHAT THE TOTAL NEW PASSENGER CAPACITY YOU ARE, YOU WERE TRYING TO PLAN FOR AS IT RELATES FROM THE PASSENGER ACTIVITY LEVELS? UHHUH,
I DON'T KNOW IF SHANE OR TIM WANNA COME UP HERE AND TALK ABOUT THOSE PASSENGER ACTIVITY LEVELS.
I'LL LET THEM GIVE YOU 'CAUSE THEY HAVE THE DETAILED NUMBERS.
AFTERNOON, SHANE HARSON, CHIEF DEVELOPMENT OFFICER FOR THE AVIATION DEPARTMENT.
UM, PASSENGER LEVELS, BASICALLY WE'RE TRYING TO PLAN FOR YEAR 2030, AND THEN PLANNING LEVEL TWO IS 2040.
AND SPECIFICALLY FOR THE GROUND LOAD FACILITY, THREE GATES, YOU CAN AVERAGE PROBABLY SAY ABOUT A MILLION PASSENGERS COULD GO THROUGH THAT, ABOUT 330,000 PER GATE.
SO, UM, ULTIMATELY THIS HELPS SETS UP FOR, UH, HAVING A CONTINUOUS BUILD OUR INFRASTRUCTURE MATCH OUR FORECAST.
COUNCIL MEMBER ROCHE GARCIA, COUNCIL MEMBER KEO H THANKS, MAYOR.
UM, THIS PROJECT IS MOVING ALONG AT A SWIFT AND STEADY SPA, UH, PACE.
I'M, I'M VERY APPRECIATIVE OF THAT.
THIS IS ONE OF THE MOST IMPORTANT PROJECTS, ISSUES, CONCERNS, ADVANCEMENTS, I THINK THAT THE CITY IS WORKING ON RIGHT NOW.
SO I THANK YOU, UH, JESUS, UH, FOR THE PRESENTATION.
THANKS TO JEFF AND, UH, JENNA AND JOHN FOR ALL YOUR HARD WORK IN ADVOCATING AND PUSHING OUR AIRPORT INTO THE FUTURE.
THIS IS REALLY WHAT I SEE, UM, IS REALLY SPEARHEADING OUR CITY INTO THE FUTURE.
I DO HAVE A COUPLE OF QUESTIONS.
UM, THE DELEGATION OF AUTHORITY, IT SOUNDS LIKE IT'S GONNA MAKE US, UH, LEANER AND QUICKER, HOPEFULLY.
UM, ARE THERE ANY OTHER, ARE WE WORKING ON ANY OTHER MECHANISMS TO MITIGATE ANY DELAY TO AVOID THAT $800 A DAY COST? 800,000? I SAID 800.
DAN MALLOY WITH THE EXECUTIVE PROGRAM MANAGEMENT TEAM.
THANK YOU FOR ALLOWING ME TO SPEAK.
UH, THE $800,000 A DAY IS RUNNING COSTS.
AND, AND YOU KNOW, I THINK THE BIGGEST THING YOU DO TO BE EFFICIENT IN A PROGRAM LIKE THIS RUNNING A BIG PROGRAM, IS YOU HAVE TO BE ABLE TO MAKE DECISIONS.
YOU HAVE TO BE ABLE TO, TO UNDERSTAND WHAT'S COMING AT YOU.
SO WE PUT AN E E P M TEAM IN PLACE.
WE HAVE A PM TEAM IN PLACE, AND WE'RE GONNA HAVE A CMM AT RISK.
WHAT ALL OF THAT DOES TOGETHER COUPLED WITH, UH, A GOVERNANCE PROCESS WE'RE PUTTING INTO PLACE, IT ALLOWS YOU TO UNDERSTAND WHAT'S COMING AT YOU, WHAT DECISIONS NEED TO BE MADE, WHERE THE PROBLEMS ARE CROPPING UP.
YOU PUT A TEAM ON IT TO ADDRESS IT, UNDERSTAND WHAT OPTIONS YOU HAVE, ASSESS THE RISK, AND THEN MAKE SOME DECISIONS.
AND THOSE DECISIONS ARE GUIDED WITH A COMMUNICATIONS PROCESS.
A GOVERNANCE PROCESS IS A COMMUNICATIONS PROCESS THAT LETS EVERYBODY MAKE SMART DECISIONS VERY QUICKLY WITH FULL ALIGNMENT OF THE BIGGER PICTURE.
SO IT'S NOT ONLY THE DELEGATION OF AUTHORITY, BUT IT'S GOVERNANCE, IT'S IT'S ALIGNMENT AND, AND THOSE ITEMS ARE BEING PUT INTO PLACE AS WELL.
I'D LIKE TO TAKE IT OFFLINE WITH YOU AND LEARN A LITTLE BIT MORE ABOUT WHAT YOU MEAN BY BY GOVERNANCE.
WE'LL GO A LITTLE DEEPER DIVE INTO ALL OF THAT.
BUT, UM, BUT WHAT I WILL SAY IS I'M HEARING THAT THERE'S GONNA BE, UH, KIND OF SPOT CHECKS, RIGHT? YOU'RE GONNA BE ABLE TO PIVOT AND IT, IT JUST SOUNDS LIKE IT'S, IT'S, YOU HAVE, YOU'RE
[00:35:01]
GONNA, AS YOU GO ALONG, YOU'RE GONNA BE, UM, TESTING AND SEEING.IT, IT'S NOT SPOT CHECKS, IT'S CONSTANT VIGILANCE.
UM, AND, UH, DO WE, I'M GRATEFUL TO KNOW THAT THIS IS ALSO KIND OF A TESTING GROUND, IF I HEARD YOU CORRECTLY, UM, ERIC, ABOUT TO USE MAYBE SOME OF THE SAME PROCEDURAL MECHANISMS, UH, SPECIFICALLY FOR MARBACH AND FOUR 10, I'M SURE, UH, COUNCILWOMAN, UH, DR.
OTTA GARCIA AGREES THIS IS ONE OF THE MOST DIRE CONCERNS OF OUR CONSTITUENTS.
AND SO I THINK WATCHING HOW THIS, UM, HOW QUICKLY YOU PIVOT AND ARE ALLOWED TO, TO MOVE THROUGH THIS PROJECT, I THINK COULD BE HELPFUL.
UM, IS THAT, DID I HEAR THAT RIGHT? IS YOU DID OKAY.
AND, AND NOT JUST IN DELEGATION, BUT MAYBE IN SOLICITATION, RATHER THAN DOING LOW BIDS ON SOME OF THOSE LARGER CONTRACTS, WE MAY, WE MAY WANNA START DOING C M R RISK.
AND THIS MAY BE JUST SLIGHTLY OFF TOPIC, BUT ARE, ARE THERE ANY SAFEGUARDS BUILT IN HERE, UM, OR, OR PENALTIES FOR ENSURING QUALITY WORK IN, IN THESE CONSTANT, UM, CHECKS? WELL, THAT'LL UNDOUBTEDLY BE AN ISSUE FOR US AS WE MOVE INTO CONTRACTING.
UM, AND, AND THAT'S ONE OF THE REASONS WHY WE HAVE HIRED THE TEAM THAT WE'VE HIRED WHO HAVE BUILT TERMINALS BEFORE, BUT IT'S ALSO THE REASON WHY WE WE'RE USING OUTSIDE COUNSEL.
THAT'S, THAT'S SPECIALIZED IN THESE CONSTRUCTION PROJECTS AT AIRPORTS.
UM, INCENTIVES OR LIQUIDATED DAMAGES, HOW WE'RE MANAGING THE PROJECT, THAT CONTRACT WILL LOOK A LOT DIFFERENT THAN, THAN OUR CURRENT CONTRACTS.
I I REALLY FEEL LIKE THIS IS, UH, SHOWING US THAT WE'RE SETTING OURSELVES UP FOR SUCCESS.
AND WHEN I, I SAY OURSELVES, I MEAN OUR CITY, NOT JUST THE, THE 11 OF US AROUND THE TABLE, OR YOU GUYS IN THE, IN THE, UH, AUDIENCE, UM, OUR, OUR FULL CITY.
SO I THANK YOU AGAIN FOR, UH, YOUR DEDICATION.
THIS IS, UH, A WONDERFUL OPPORTUNITY FOR SAN ANTONIO TO CONTINUE TO GROW AND TO BE A, A DESTINATION CITY FOR PEOPLE FROM ALL, FROM ALL AROUND THE COUNTRY.
SO I THINK ALL OF US ARE VERY ENTHUSIASTIC ABOUT THE AIRPORT'S EXPANSION.
ONE THING, UH, THAT, UH, DOES CONCERN ME THOUGH, IS, UH, I UNDERSTAND ROUGHLY THAT YOU'RE SAYING THIS IS BETWEEN A 700 MILLION AND A $1 BILLION PROJECT.
AND, UH, WE TALK ABOUT CONTINGENCIES AND, UH, I KNOW CUSTOMARILY I HEAR CONTINGENCIES, UH, WITH A LOT OF THINGS WE DO AT ABOUT 10%, AND 10% OF 700 MILLION TO A BILLION IS 70 MILLION TO A HUNDRED MILLION DOLLARS.
AT THE SAME TIME, WE'RE HEARING THAT WE WANT TO GIVE THE CITY MANAGER THE AUTHORITY TO MAKE THOSE DECISIONS.
THOSE ARE PRETTY BIG DECISIONS.
I MEAN, HE'S NOT GONNA SPEND A HUNDRED MILLION DOLLARS, I UNDERSTAND THAT, BUT THERE COULD BE $5 MILLION CHANGES, $10 MILLION CHANGES, $25 MILLION CHANGES.
WE JUST GOT THROUGH A DISCUSSION ABOUT AUTHORIZING THE CITY MANAGER TO IMPROVE THINGS OF $150,000.
AND WE HAD A DISCUSSION ABOUT THAT.
AND SO NOW WE'RE SAYING, WELL, WE'LL GIVE THE CITY MANAGER THE AUTHORITY TO APPROVE ANYTHING BETWEEN 70 A HUNDRED MILLION DOLLARS OVER THE COURSE OF THIS PROJECT.
UM, AND I DON'T KNOW WHO THE CITY MANAGER'S GONNA BE IN FOUR OR FIVE YEARS.
I MEAN, WE HAVE A TERM LIMITED CITY MANAGER RIGHT NOW.
SO WHO IS GOING TO BE THE NEXT PERSON WITH THAT AUTHORITY? SO THIS CONCERNS ME.
UH, AND THE ONE THING I WANNA BE SURE OF IS IF THIS ACTION IS APPROVED BY THE COUNCIL, THAT WHEN THIS AUTHORITY IS USED BY THIS, OR ANY FUTURE CITY MANAGER, THAT IT BE REPORTED AND REVIEWED BY THE COUNCIL WITHIN 30 DAYS OF IT BEING EXERCISED, SO THAT WE ARE REALLY KEPT AWARE OF WHAT KIND OF AUTHORITY THE CITY MANAGER NEEDS TO EXERCISE ON BEHALF OF THESE PROJECTS.
I WANTED TO BRING THAT UP FOR CONSIDERATION.
COUNCILMAN, THAT'S, THAT'S, THAT'S A VALID CONVERSATION.
WE TALKED ABOUT THAT, UM, PRIOR TO COMING.
UM, THERE NEEDS TO BE A REPORTING REQUIREMENT.
AND IF THAT'S THE, IF THAT'S THE IDEA THAT YOU WANT TO INCLUDE, WE'LL, WE WILL BUILD THAT INTO THE ORDINANCE BECAUSE THERE'S GOTTA BE SOME CLOSING OF THE LOOP.
KEVIN IS GONNA BE AUDITING THIS PROJECT, SO WE WANNA MAKE SURE THAT WE'VE GOT THAT ALL LAID OUT.
UM, BUT, UH, I THINK WE COULD CERTAINLY DO THAT.
I I WILL ALSO SAY THAT I HAD THE SAME CONVERSATION GENERALLY WITH, UM, YOU KNOW, ELM STREET STREET PROJECT.
WE MAY HAVE A 10% CONTINGENCY.
THE CONTINGENCY AT THE AIRPORT MAY NOT BE 10% BECAUSE WE'RE TALKING ABOUT LARGER NUMBERS.
UM, BUT IRRESPECTIVE OF THAT, THE, THE, THE EXECUTION OF THAT COUNCIL APPROVED CONTINGENCY DOES HAVE TO HAVE A REPORTING TO THE COUNCIL OF THE ACTION SO THAT YOU'RE AWARE OF IT.
I'M COMPLETELY IN FAVOR OF THAT.
[00:40:01]
THAT LEAVES TOO MANY LINES OF, UH, MISCOMMUNICATION OPEN.AND, UM, I THINK THAT'S A GREAT IDEA.
YOU KNOW, I WOULD JUST SAY, MAYOR, THAT PEOPLE HOLD US ACCOUNTABLE FOR EXPENDING THE CITY FUNDS.
AND THE CITY MANAGER IS AN ELECTED OFFICIAL.
SO ULTIMATELY, THE VOTERS HOLD US ACCOUNTABLE.
THAT'S WHY I THINK IT'S REALLY IMPORTANT FOR US TO BE VERY WELL AWARE OF THE DECISIONS THAT ARE MADE, SPENDING TENS OF MILLIONS OF DOLLARS, UH, ON THE AIRPORT OUTSIDE OF WHAT'S ALREADY IN THE NORMAL BUDGET THAT WE APPROVE.
JUST TO, JUST TO CLARIFY THOUGH, THIS IS ALL WITHIN THE BUDGET CONTINGENCY IS WITHIN THE BUDGET APPROVED? IT IS WITHIN THE BUDGET, YES, SIR.
SO I JUST, ANYTHING ABOVE BUDGET HAS TO COME TO COUNCIL.
AND, AND, AND WE'VE SAID IT A NUMBER OF TIMES, THIS IS PROBABLY THE HIGHEST PROFILE CAPITAL PROJECT THAT ANY OF US WILL BE ENGAGED IN.
SO, YOU KNOW, FRANKLY, ERIC, UM, IF THERE IS A MAJOR CHANGE ORDER THAT YOU EXECUTE, I'D, I'D EXPECT THAT WE'D GET A MEMO, UH, WITHIN THE NEXT COUPLE OF DAYS OF THAT TAKING PLACE.
SO, UH, CERTAINLY REGULAR BRIEFINGS AS THE DEVELOPMENT PROGRAM MOVES FORWARD TOO, WOULD BE IN ORDER.
THANK YOU, JOSE, FOR THE PRESENTATION.
UH, I WOULD LIKE TO REINFORCE SUPPORT FOR WHAT COUNCILMAN COURAGE, UH, JUST EXPRESSED, RIGHT? WHETHER IT'S A DOLLAR 100, $50,000, 50 CENTS, 1 MILLION.
I BELIEVE THAT THE ROLE OF OUR, OUR OF AN ELECTED BODY IS TO HAVE CONVERSATIONS AND DEBATE THOSE ITEMS. UM, OFTENTIMES WHAT WE HAVE SEEN, RIGHT? AND I'M NOT SAYING THIS IS WHAT, UH, I EXPECT FROM THE AIRPORT AT ALL, UM, BUT WE'VE SEEN, UH, FEDERAL GRANTS, UM, BE SOUGHT AND THEY'RE RECEIVED, AND THEY'RE NOT USED IN THE CAPACITY THAT THEY WERE APPLIED FOR.
UM, SO I THINK IT'S, IT'S PART OF OUR, OUR ROLE AS A BODY TO HAVE AN OPPORTUNITY TO, TO PULL THOSE ITEMS, ASKED THOSE QUESTIONS ON BEHALF OF OUR CONSTITUENCY.
UM, WITH THAT, I'M, I'M REALLY GRATEFUL FOR THE PRESENTATION.
MANY OF MY QUESTIONS HAVE BEEN ANSWERED.
UM, I FEEL LIKE WITH THE AIRPORT PRESENTATIONS, IT'S LIKE WATCHING A MOVIE TRAILER AND MORE AND MORE IS GETTING RELEASED, AND I'M JUST READY
SO I WANTED TO THANK YOU AND YOUR TEAM AND CITY STAFF FOR THE CONTINUED WORK, UH, AND ENSURING THAT Y'ALL ARE SECURING THOSE FEDERAL DOLLARS TO, TO EXECUTE THIS PROJECT.
UH, AND, AND LOOKING FORWARD TO, WHAT IS IT, 2028
COMING IN THE SPRING OF 2028 TO, UH, CITY NEAR YOU.
I APPRECIATE THE CONVERSATION THAT WE'RE HAVING HERE RIGHT NOW.
AND, UH, I UNDERSTAND THAT, YOU KNOW, WE, WE NEED TO FIND SOME KIND OF BALANCED APPROACH HERE.
UM, WE ARE ULTIMATELY RESPONSIBLE FOR THESE FUNDS AND, AND USING THEM, UH, RESPONSIBLY.
UM, I THINK, YOU KNOW, I, I TRY TO THINK ABOUT, YOU KNOW, WHEN WE DO A PROJECT LIKE THIS, UM, THERE ARE DELAYS THAT WE CAN'T AVOID, AND THERE ARE DELAYS THAT WE CAN, AND DELAYS THAT WE CAN'T AVOID, MIGHT BE, YOU KNOW, UM, SUPPLIES NOT SHOWING UP, UH, EQUIPMENT BREAKING, UH, WEATHER DELAYS.
UH, BUT THEN THE DELAYS WE CAN ARE NOT HAVING TO WAIT EVERY TIME TO MAKE A DECISION, YOU KNOW, TWO OR THREE WEEKS.
AND, YOU KNOW, THAT'S JUST INCREDIBLY INEFFICIENT.
AND OUR, THE TAXPAYERS EXPECT JOBS DONE EFFICIENTLY AND, UH, THEIR, THEIR MONEY SPENT EFFICIENTLY AS WELL.
AND SO, I, I THINK THIS IS AN OPPORTUNITY TO, TO, UH, FOR OUR, FOR GOVERNMENT TO BECOME MORE EFFICIENT AND SAVE TAXPAYER DOLLARS.
SO I'M IN FULL SUPPORT, AND I THINK WE CAN WATCH AND CONTINUE TO MONITOR AND SEE IF WE NEED TO MAKE TWEAKS ALONG THE WAY.
THANK YOU VERY MUCH FOR THAT PRESENTATION.
JESUS SAID, I DO HAVE A COUPLE OF QUESTIONS FOR YOU.
AND YOU KNOW WHAT MY FIRST QUESTION IS? IT ALWAYS IS, HOW ARE WE GONNA PAY FOR THIS? AND I, I, I, I KNOW YOU'RE STILL WORKING ON THAT, BUT AT WHAT POINT IN TIME ARE WE GONNA SEE THAT, HOW WE'RE GONNA PAY FOR THIS THING? I MEAN, YOU MENTIONED, UH, BONDS, YOU MENTIONED, UH, PASSENGER FEES, YOU MENTIONED, UM, GRANTS FROM THE FEDERAL GOVERNMENT.
WHEN ARE WE GONNA SEE THIS, WHAT OUR EXPECTATION TO PAY FOR THIS THING IS? YEAH.
SO I'LL LET THE TEAM COME UP AND TALK TO YOU ABOUT THE SCHEDULE.
BUT AS WE RELEASE THIS SOLICITATION FOR THE CONSTRUCTION MANAGER AT RISK, AND WE RECEIVE THE SUCCESSFUL CANDIDATES AND MAKE A DECISION, I, I REMIND EVERYONE AS WE, YOU KNOW, SUBMITTED THE ADVANCED TERMINAL PLANNING EXERCISE, IT TOOK US TO WHERE WE'RE AT TODAY.
IT ESTABLISHED THE BRIDGING DOCUMENTS THAT GETS US TO APPROXIMATELY A LITTLE OVER 5%, CLOSE TO 10% OF DESIGN WORK.
WE HAVE PURPOSEFULLY AND STRATEGICALLY PUT ALL THIS TOGETHER AS IT RELATES TO THE CONSTRUCTION MANAGER AT RISK, WHICH IS THE PREFERRED DELIVERY METHOD.
WE WANT TO GO WITH A MASTER ARCHITECT WORKING TOGETHER, THAT WILL TAKE US TO APPROXIMATELY 30%.
WHEN WE COMPLETE THAT, THAT'S GONNA GIVE US THE OPPORTUNITY TO GO OUT FOR SOME OF THESE PACKAGES THAT WE REFERENCED TODAY.
[00:45:01]
EVERYTHING WE'RE, WE'RE REVIEWING TODAY IS PRE-CONSTRUCTION.WE WILL HAVE GUARANTEED MAXIMUM PRICES THAT WILL COME FROM THAT, AND THEN WE'LL CERTAINLY BE ABLE TO GIVE YOU FIRM DECISIONS AS WE CONTINUE TO PROGRAM THE ENTIRE FACILITY AS IT RELATES TO BAGGAGE EQUIPMENT, H V A C, ALL OF THE UTILITIES THAT ARE ASSOCIATED WITH THAT.
THE AIRLINES STILL HAVE A LOT OF DECISIONS TO MAKE ON THE NUMBER OF GATES THAT THEY'RE GONNA WANT, WHAT SPECIFIC, UH, AREAS THAT THEY'RE GONNA NEED FOR ALL OF THEIR OPERATIONS AS WE GO IN THROUGH THIS PROCESS.
SO WE'RE WORKING LOCKSTEP WITH THEM AS WE CONTINUE TO MOVE FORWARD.
AND THEN THAT WILL DEFINE, UM, THE ULTIMATE PRICE AS WE CONTINUE TO MOVE FORWARD.
SIR, I HEAR YOU WHAT YOU'RE SAYING, BUT YOU KNOW, IN OUR, IN OUR BOND PROGRAM THAT WE JUST DID, WE HAD SPECIFIC PRICING BASED ON FUTURE ESTIMATES FOR A CONSTRUCTION PROJECT.
AND, AND THAT'S WHAT WE'RE HOLDING OURSELVES TO.
AND WE KNOW HOW WE'RE GONNA PAY FOR THAT, UM, FOR THAT PROJECT.
AND IT JUST SEEMS TO ME LIKE WE'RE THIS MOST, TO ME, MOST IMPORTANT PART ON HOW YOU'RE GONNA PAY FOR IT.
WE'RE PUSHING FURTHER DOWN THE ROAD THAT, YOU KNOW, WE MIGHT GET TO SOME POINT IN TIME, YOU GET DESIGN PACKAGES DONE, WHERE WHAT YOU'RE SAYING IS WE'RE GONNA HAVE MORE DEFINITE, UH, COST OUT THERE SO THAT, UH, WE, WE MIGHT GET TO THAT POINT AND SAY, HOLY MOLY, MAN, THIS IS MORE THAN WHAT WE CAN AFFORD NOW.
WE'RE GONNA HAVE TO BACK OFF AND, YOU KNOW, CHANGE THINGS TO REDUCE THE SCOPE TO BE ABLE TO AFFORD IT.
AND THAT'S WHAT I'M GETTING AT.
I'M JUST CONCERNED THAT WE'RE NOT LOCKING DOWN OR PUTTING SOME ESTIMATES TOGETHER AT THIS POINT, AND THEN DEVELOPING A PAY PLAN ON HOW WE'RE GONNA PAY FOR THIS.
AND WHAT I, WHAT I HOPE DOESN'T HAPPEN IS THAT IT'S GONNA IMPACT OUR PASSENGER FEES SUCH THAT IT'S GONNA DRIVE UP OUR TICKET COST HERE IN SAN ANTONIO, AND PEOPLE ARE GONNA BE USING OTHER AIRPORTS SURROUNDING THIS AREA.
AND THAT'S MY FEAR ABOUT NOT HAVING THIS STUFF IDENTIFIED AND COSTED OUT AT, WITH ESTIMATES AT THIS POINT TO SAY, YEP, THAT'S WITHIN OUR, THAT'S WITHIN OUR CAPABILITY TO PAY THAT OFF WITH JUST LIKE YOU SAID, BONDS PASS FEES AND, AND FEDERAL GRANTS, WHAT OUR EXPECTATIONS ARE.
I'M JUST CONCERNED ABOUT THAT.
I'VE BEEN ASKING THAT QUESTION SINCE DAY ONE, AND WE STILL DON'T HAVE THAT ANSWER.
AND, AND I, I WOULD REALLY LIKE TO HEAR, WHEN ARE WE GONNA HAVE THAT AVAILABLE? WHAT DATE IS IT THIS YEAR, NEXT YEAR? WHEN ARE WE GONNA HAVE THAT, YOU KNOW, WE'RE SCHEDULED IN 2024 TO HAVE THE GMPS LATE 24.
SO THAT'S WHEN WE SHOULD BE ABLE TO GIVE YOU A PRECISE ANSWER ON THAT NUMBER.
I WILL TELL YOU THAT AS YOU TALK ABOUT, WE ARE VERY CONSIDERATE AND CONSERVATIVE IN OUR ESTIMATES THAT WE'RE PRO, THAT WE'RE PROVIDING, BECAUSE THIS ISN'T JUST A RELATIONSHIP WITH US, IT IS WITH THE CITY OF SAN ANTONIO.
WE ARE CITY STEWARDS, BUT IT, IT IS ALSO A VERY IMPORTANT ELEMENT TO THE AIRLINES.
SO WE ARE WORKING VERY CLOSELY WITH THE AIRLINES, AS THE CITY MANAGER REFERENCED EARLIER.
WE HAVE AN AIRLINE USE AND LEASE AGREEMENT THAT THEY WILL BE A PART OF AS WELL.
AND WE ARE ALSO BEING, YOU KNOW, VERY CONSIDERATE AS IT RELATES TO THE COST PER AND PLANE PASSENGERS.
SO WE WANT TO KEEP THOSE NUMBERS AS LOW AS POSSIBLE AS WE CONTINUE TO, TO TRAJECT FORWARD.
I I'M JUST CONCERNED ABOUT THAT.
JESUS AND I, I SAID THAT SINCE DAY ONE, WE, WE SHOULD HAVE SOME KIND OF A, A COSTING OUT THERE TO SEE, YOU KNOW, THIS THING MIGHT COST $10 BILLION.
AND THEN WHAT ARE WE GONNA DO? WE'RE GONNA HAVE TO CUT THINGS OUT TO GET IT DOWN TO WHAT WE CAN AFFORD.
AND, UM, UH, I, I THINK WE NEED TO HAVE THAT COSTING A LITTLE BIT EARLIER SO THAT WE CAN SAY, YES, WE CAN AFFORD THIS AND LET'S PROCEED ONTO THE NEXT PHASE, THE NEXT STAGE OF DESIGN, SO ON AND SO FORTH.
UM, SLIDE EIGHT, UM, HERE, SEVERAL YEARS AGO, WE JUST COMPLETED A, UM, A BRAND NEW CUSTOMS FACILITY OVER THERE.
AND, UM, YOU KNOW, WE SPENT A LOT OF MONEY.
IN FACT, THERE WERE DELAYS ON THAT PROJECT CAUSED BY, I THINK IT, WHO WAS IT? NOT F A A, IT WAS, UH, CAUSED BY, I THINK IT WAS THE FED, IT WAS THE FEDS.
BUT YEAH, SOMEBODY BLAME SOMEBODY.
THE FEDS DELAYED THAT PROJECT AND I THINK COST US ANOTHER $2 MILLION ON THAT PROJECT.
WHAT ARE WE GONNA DO WITH THAT FACILITY? ARE WE GONNA JOINT USE IT OR IS THAT FACILITY GONNA BE REPLACED WITH A NEW ONE? UH, NO, SIR.
THAT, UM, IS BASED ON PROBABLY THE DELAYS CONTINGENT ON 2016, TECHNICAL DESIGN STANDARDS THAT WERE ESTABLISHED BY THE CUSTOMS AND BORDER PROTECTION HAVE NOW BEEN, UH, TRANSFORMED TO 2019 TECHNICAL DESIGN STANDARDS.
[00:50:01]
HAS A NUMBER OF, UH, WORKING GROUPS THAT ARE ALREADY REACHING OUT.WE'VE ALREADY, UH, HAVE BEGAN CONVERSATIONS WITH CUSTOMS AND BORDER PROTECTION, THE TRANSPORTATION SECURITY ADMINISTRATION, AND THE FEDERAL AVIATION ADMINISTRATION TO ENSURE THAT ALL OF THOSE DESIGN STANDARDS ARE ENCOMPASSED INTO THE PROGRAMMING AND PLANNING WORK THAT WE'RE STILL GOING AS WE FINALIZE THESE DESIGNS FOR THIS STUDENT TERMINAL FACILITY.
SO WE'RE GONNA BUILD A BRAND NEW ONE.
THE ONE THAT WE JUST COMPLETED A COUPLE YEARS AGO, THE, THE EXISTING FACILITY, I BELIEVE, WAS COMPLETED JUST BEFORE 2020, WHICH WAS SOMEWHERE AROUND 20 18, 20 19.
I APOLOGIZE, I DON'T, YEAH, IT WAS AROUND THERE.
IT WAS AROUND SOMEWHERE IN THAT RANGE.
SO IT WILL HAVE 10 YEARS OF USEFUL LIFE.
I KNOW THE COST OF THAT FACILITY WAS JUST OVER $25 MILLION FOR THAT FACILITY.
UM, WE WILL HAVE, UH, RECOVERED THE COST AND THE UTILIZATION OF THE NUMBER OF INTERNATIONAL PASSENGERS TODAY.
WE CHARGE JUST A LITTLE OVER $10 FOR EVERY INTERNATIONAL PASSENGER THAT ENTERS INTO THE F I S FACILITY.
AS WE UTILIZE THAT FACILITY OVER THE NEXT 10 YEARS, ONE OF THE BIGGEST CONSTRAINTS WE HAVE IS AS WE CONTINUE TO GROW INTERNATIONALLY, WE ARE GOING TO HAVE TO INCREASE THAT SPACE AND IT FITS PERFECTLY FOR THE WIDE BODY AIRCRAFT THAT WILL GO INTO THE NEW FEDERAL INSPECTION SERVICES FACILITY.
UM, ON, UH, SLIDE NUMBER 17 HERE, UH, DELEGATION OF AUTHORITY, AND I TOO HAVE SOME CONCERNS ABOUT THAT, ERIC, I UNDERSTAND THE CITY MANAGER'S JOB IS TO EXECUTE POLICY OF THE COUNCIL, AND NOT NECESSARILY THE COUNCIL SHOULDN'T GET INTO THE DAY-TO-DAY OPERATIONS.
HOWEVER, UM, IF YOU SAY THAT WE'RE GONNA GIVE YOU APPROVAL AUTHORITY TO MAKE CHANGES UP TO THE TOTAL CONTINGENCY AMOUNT, UM, THAT'S A BIG WIDE DISPARITY THERE ON HOW MUCH YOU CAN ACTUALLY APPROVE.
AND I, I TOO AM A LITTLE CONCERNED ABOUT THAT.
HOWEVER, IF THERE'S A, A QUICK REPORTING, UH, CYCLE OR SOMETHING WRITTEN OUT SAYING THAT, YOU KNOW, YOU'RE GONNA HAVE THAT TO COUNCIL WITHIN X DAYS OR WHATEVER, AND WE CERTAINLY DON'T WANNA GET INTO, UH, WHERE SOMETHING GETS, UH, DONE WITHOUT YOUR APPROVAL.
I KNOW WE'VE HAD, UH, SOME OF THOSE INSTANCES IN THE PAST.
WE GOTTA GUARD AGAINST THAT ON THIS CONTRACT, UH, TO MAKE SURE THAT THAT DOESN'T HAPPEN.
AND JUST TALKING ABOUT THE OVERALL, UH, CONTRACT HERE ARE, ARE WE, AND I SEE THAT THE 800,000 PER DAY, UH, THAT'S AT THE VERY PEAK, $800,000 A DAY.
THAT'S NOT ACROSS THE ENTIRE CONTRACT PERIOD.
THAT'S AT THE PEAK OF THE CONSTRUCTION AND WHAT WE'RE DOING OUT THERE.
SO THAT, THAT'S NOT GONNA BE THAT ACROSS THE ENTIRE ENTIRE CONTRACT, $800,000 A DAY.
BUT TALKING ABOUT THAT, ARE WE GONNA HAVE LIQUIDATED DAMAGES ON THIS OR ARE WE GONNA HAVE INCENTIVES BUILT INTO THIS, THIS CONTRACT COUNCILMAN? WE'LL HAVE TO NEGOTIATE THAT, BUT THOSE CONTRACTS WILL LOOK DIFFERENTLY THAN THEY DO FOR OUR EXISTING CONSTRUCTION.
THAT'S WHY WE'VE HIRED, UM, SPECIALIZED OUTSIDE COUNSEL THROUGH ANDY AND, UM, THE INDIVIDUALS THAT, THAT ARE HERE IN THE CHAMBERS, THAT CONTRACT WILL LOOK DIFFERENTLY AND WE'LL NEGOTIATE THAT.
SO Y'ALL ARE CONSIDERING INCENTIVES VERSUS LIQUIDATED DAMAGES ON THIS? WE WE'RE, WE'RE EVALUATING WHAT WORKS BEST IN THESE TERMINAL TYPE OF FACILITIES THAT HAS WORKED, UM, UM, IN OTHER PARTS OF THE COUNTRY.
AND, UH, WE CAN UPDATE THE COUNCIL WHEN WE COME BACK FOR THE, UH, POST SOLICITATION ON THIS ITEM.
UH, I WOULD REALLY RECOMMEND SOMETHING ON THE LINES OF INCENTIVES VERSUS LIQUIDATED DAMAGES ON THIS.
UH, AND THEN JUST ON THE, UH, UH, SLIDE 13, I JUST HAD ONE MORE COMMENT.
JUST ON THE TIMELINE RIGHT NOW, WE'RE SHOWING 45 DAYS TO PREPARE THIS THING.
I'D SURE LIKE FOR Y'ALL TO TAKE A LOOK AT, UH, EXTENDING THAT A COUPLE OF WEEKS AND MAKING THAT A 60 DAY TO MAKE SURE THAT THE CONTRACTORS ARE LINING UP GREAT SUBS AND GETTING GOOD PRICING, SO ON AND SO FORTH, THAT THIS IS TOO BIG OF A PROJECT TO COME TRY TO COMPRESS IT DOWN TO 30, YOU KNOW, IT USED TO BE 30 DAYS AND THEN WE MADE IT 45, BUT I THINK THIS ONE WE OUGHT TO GO UP TO 60.
COUNCIL MEMBER PERRY, COUNCIL MEMBER ILLA GRANT.
UH, I'M HEARING TWO CONVERSATIONS HERE.
UM, BUT WITH THE DELICATE AUTHORITY, UH, DELEGATION OF AUTHORITY, I, I'M IN SUPPORT OF THAT BECAUSE NOT EVERY ISSUE CAN BE SETTLED BY COMMITTEE.
AND IF THE COUNCIL WANTS TO HAVE A LARGER CONVERSATION OF WHAT WE ALLOW OUR CITY MANAGER TO DO OR APPROVE, I THINK THAT SHOULD BE A DIFFERENT SEPARATE, UM, CONVERSATION IN TERMS OF AMOUNTS, BECAUSE THIS IS A PROJECT THAT IS, UM, IT'S HUGE AND WE NEED TO BE ABLE TO BE NIMBLE AND WORK QUICKLY ON THIS.
[00:55:01]
AND, UH, IF YOU COULD, ERIC, GIVE US EXAMPLES WHEN WE HAVE THIS MEETING ABOUT WHAT THEY DID IN KANSAS CITY AND, AND WHAT THEY DID IN OTHER, UM, AIRPORTS ON THIS DEVELOPMENT, BECAUSE WE ARE A, UH, CITY MANAGER, UM, COUNCIL FORM OF GOVERNMENT, LET'S HAVE THAT CONVERSATION BECAUSE I, I DO NOT WANT ANYTHING TO DELAY THIS PROJECT.SO, UM, THAT, THAT'S MY ONE, UH, THING IN TERMS OF THE CONVERSATION I'VE HEARD SO FAR ABOUT THE COST, BECAUSE I'M SURE THAT IF THERE'S ANYTHING THAT'S HUGE ON THE CHANGE ORDER AND IF THEY WANNA, AND IF WE AS A COUNCIL WANNA FORMALIZE IT TO TWO DAYS OR THREE DAYS, WHATEVER, WELL, LET'S DO THAT.
BUT I THINK WE NEED TO GIVE THE, UH, DELEGATION OF AUTHORITY IN ORDER TO MAKE SURE THAT WE'RE MOVING IN A TIMELY MANNER.
'CAUSE WE KNOW, OR AT LEAST I KNOW HOW LONG COMMITTEES CAN TAKE.
UM, AND, UH, AGAIN, JESUS, UH, IF YOU COULD COME UP AND TALK TO ME ABOUT, I RE, I KNOW WE ARE LIMITED IN TERM TERMS OF THE, UM, THE SUBCONTRACTORS AND, AND WHAT WE DO BECAUSE THIS IS A FEDERAL PROJECT AND WE'RE GETTING FEDERAL FUNDS.
BUT HOW DO WE HAVE A PLAN TO INCORPORATE KIND OF THAT BEST VALUE, THAT LOCAL OPPORTUNITY FOR, FOR THOSE AND THAT EXPERIENCE THAT SOME OF OUR, OUR, UM, BUSINESS OWNERS AND CONTRACTORS HERE NEED DO, DO WE HAVE A PLAN ON HOW WE'RE GOING TO DO THAT? YES.
UH, COUNCILMAN AS IT RELATES TO, IN REALLY IN ALIGNMENT WITH THE QUESTION THAT COUNCIL MEMBER PERRY WAS ASKING AS WELL, WE'VE BEEN WORKING ON THIS FOR SOME TIME.
WE'VE BEEN COMMUNICATING, IT'S THE REASONING WE'VE, WE'VE PUT THIS INFORMATION OUT AS MUCH AS POSSIBLE TO ALLOW THEM THE OPPORTUNITY TO LET THEM KNOW THE DIRECTION THAT WE'RE HEADING TOWARDS.
YOU KNOW, WE STILL HAVE SOME WORK TO DO WITH THE DESIGN ELEMENTS OF WHAT WE'RE GONNA BE DOING.
SO THROUGHOUT THAT PROCESS, AS WE CONTINUE TO MOVE FORWARD, AS WE PUT THE SOLICITATION OUT, UM, WE HAD THE INDUSTRY DAY, UH, IN THE EARLY DAYS OF APRIL TO ENSURE THAT EVERYONE BEGAN TO WORK TOGETHER TO COLLABORATE ON HOW THEY COULD JOINT VENTURE, SOME OF THOSE PARTNERSHIPS OF WORKING TOGETHER ALONG WITH THE D B E PARTICIPATION.
AND I COULD BRING THE TWO TEAM MEMBERS THAT WE HAVE AND TALKED A LITTLE BIT ABOUT WHAT THE D B E IS, SO YOU CAN HAVE A LITTLE BIT MORE UNDERSTANDING OF HOW WE'RE WORKING THOSE EFFORTS.
I'LL ASK BARBARA AND LAMONT TO COME UP AND TALK ABOUT THAT.
HI, I AM BARBARA PATTON, UM, THE BUSINESS OPPORTUNITY AND DIVERSITY DEVELOPMENT MANAGER AT THE AIRPORT.
AND THIS IS LAVANIA HORN WILLIAMS. HORN WILLIAMS. AND SHE'S WITH, I'M WITH HORN WILLIAMS MANAGEMENT CONSULTING.
DO YOU WANT ME TO GO FIRST? SURE.
SO COUNCIL MEMBERS AND MAYOR, THANK YOU FOR ALLOWING US TO COME AND SPEAK WITH YOU ABOUT THE D B E PORTION OF THIS.
PART OF THE GOAL FOR THE D B E PROGRAM HERE WITH THE CITY IS THEY'RE GONNA BE DOING OUTREACH ALONG WITH THE CMAR AS WELL AS ADDITIONAL EFFORTS TO GET MORE VENDORS CERTIFIED SO THAT THEY CAN PARTICIPATE ON THIS PROJECT.
SO THERE'LL BE A DUAL EFFORT THAT'LL BE, UM, UNDERTAKEN TO BE ABLE TO DO THAT.
AND I, I JUST WANNA ADD THAT THE DBES THAT WE HAVE BEEN OBTAINED OBTAINING ARE WITHIN THE SAMHSA AREA.
SO MOST OF THE DBES THAT WE'VE BEEN GETTING ON ALL OUR PROJECTS, THEY ARE LOCAL FIRMS. UM, EVEN THOUGH THIS IS A FEDERAL PROJECT, YOU KNOW, WE CAN'T, UM, MANDATE THE TO LOCAL, BUT ALL THE FIRMS THAT WE'VE BEEN OBTAINED FOR DBES ARE REALLY FROM SAN ANTONIO OR LOCAL.
AND I REALLY APPRECIATE THOSE EFFORTS.
AND THEN, UH, WHATEVER WE CAN DO AS COUNCIL MEMBERS REGIONALLY TO HELP, UH, CONTINUE TO, TO PROMOTE THAT MESSAGE, WE WANNA BE ABLE TO DO, I THINK THIS IS GOING TO BE WHAT MAKES THIS, WHAT'S GOING TO SET THIS BUILD OF THIS AIRPORT AND, AND THE IMPROVEMENTS DIFFERENT FROM, FROM OTHERS.
UM, AND THE OTHER THING I WANNA STRESS IS, EVEN THOUGH THIS IS THE SAN ANTONIO AIRPORT, TO REMEMBER THAT REGIONALLY, WE HAVE FLORESVILLE VON ARMY, SEIN UM, TOWNS FURTHER SOUTH THAT SEE THIS AS A REGIONAL AND SEE THIS AS PART OF THEIRS.
SO I APPRECIATE YOUR EFFORTS AND THANK YOU FOR COMING AND EXPLAINING.
I WOULD, AND KAREN ELLIS, WHO'S LEADING THE ENTIRE, UM, AIRPORT MINORITY ADVISORY, UH, COUNCIL.
WE ARE HOSTING AN AMAC CONFERENCE HERE IN SAN ANTONIO THAT'S ALSO GONNA PROVIDE OPPORTUNITIES HERE, UM, IN THE NEXT MONTH TO ESTABLISH THOSE BRIDGES FOR PEOPLE TO BEGIN THOSE MATCHMAKING OPPORTUNITIES.
COUNCIL MEMBER VIA GR, COUNCIL MEMBER PIA.
UM, I, I THINK, I THINK IT'S FANTASTIC.
YOU GUYS ARE DELIVERING EXACTLY WHAT YOU'D PROMISED, YOU'D DELIVERED.
UM, I, I LIKE THE ROADMAP AND UH, IT'S, UH, THIS IS ONE OF THE MOST SOPHISTICATED PROJECTS THAT WE'RE GONNA HAVE TO PULL OFF IN.
[01:00:01]
TIME I THINK WE SAW A PROJECT THIS BIG, UH, AND, AND THIS IMPORTANT AND COMPLEX WAS THE CONVENTION CENTER.UH, AND SO WITH THAT ONE, ERIC, UM, I, I DO REMEMBER BACK IN THE DAY, 'CAUSE I, I WAS ONE ON ONE OF THE TEAMS THAT WAS, UM, THAT, THAT HAD BID AND DIDN'T GET THE, DIDN'T GET THE JOB.
BUT I REMEMBER, UM, THAT THERE WERE CHANGE ORDERS ALSO AND THAT THERE WERE SOME, SOMETIMES THERE WERE BIG ONES.
I DON'T REMEMBER SEEING ANY OF THOSE CHANGE ORDERS BEING BROUGHT BACK TO CITY COUNCIL FOR COMMITTEE MEETINGS AND FOR, YOU KNOW, A SESSION.
I THINK THAT WHAT HAD HAPPENED WAS WE, YOU KNOW, CITY COUNCIL THEN HAD DELEGATED SOME OF THIS AUTHORITY TO EXECUTE AND BUILD THIS CONVENTION CENTER, UM, TO CHERYL AND HAD HER JUST, YOU KNOW, BLOCKING AND TACKLING.
UM, IS, AM I, AM I MISREMEMBERING THAT? I I I'M NOT AWARE OF THAT, COUNCILMAN.
I DON'T, I DON'T THINK, UM, WE'LL GO BACK AND LOOK, BUT I DON'T THINK WE'VE EVER EXERCISED THIS BEFORE.
I MEAN, DO YOU REMEMBER CHANGE ORDER VOTES, GOING TO COMMITTEES AND GOING UP TO CITY COUNCIL? WELL, IT'S NOT, IT'S NOT, IT'S NOT NECESSARILY JUST CHANGE ORDERS, IT'S, IT'S THE USE OF THE CONTINGENCY.
SO THOSE HAPPEN, THOSE HAPPEN ALL THE TIME.
WELL ANYWAY, I, I, I SUPPORT THE REQUEST.
THE MAYOR'S TRYING TO GIVE ME A SIGNAL.
I BELIEVE THAT THE REASON WHY THERE WEREN'T A WHOLE LOT OF CHANGE ORDERS BECAUSE IT WAS A DESIGN BUILD.
WE HAD A GUARANTEED MAXIMUM PRICE, BUT, UM, WE'LL, WE'LL LOOK, WE'LL GO BACK AND LOOK, BUT I DON'T THINK WE'VE DONE THIS BEFORE.
WELL, ANYWAY, I SUPPORT, I SUPPORT THE PROJECT.
THIS IS, UH, AND, AND I SUPPORT THE REQUEST.
UH, AND YOU KNOW, I, I'VE SAID THIS IN THE PAST, AND JESUS, I'LL SAY IT AGAIN, RIGHT? NUMBER ONE PRIORITY IS TO PROVIDE THE CITY OF SAN ANTONIO WITH THE BEST DAMN AIRPORT THAT IT DESERVES.
EXCELLENCE IS THE ONLY THING THAT, UH, SAN ANTONIOS DESERVE.
IT'S WHAT WE'VE PROMISED THEM.
UM, AND EVERYTHING ELSE IS NUMBER TWO.
UM, AND, AND COMES BELOW THAT.
RIGHT? AND SO I JUST NEED TO MAKE SURE THAT, UH, AND, AND I'M CONFIDENT THAT YOU GUYS HAVE THE, UH, HAVE YOUR EYE ON THE PRIZE HERE.
WHICH IS BUILD ME THE BEST DAMN AIRPORT IN THE WORLD AND DO IT ON TIME AND ON BUDGET AND EVERYTHING ELSE.
I KNOW YOU'RE GONNA GET RIGHT.
'CAUSE SO FAR, YOU KNOW, YOU'VE GOTTEN THE SMALL THINGS RIGHT FOR US MANY TIMES.
RIGHT? THERE'S THE OLD SAYING, IF I CAN TRUST YOU WITH THE SMALL THINGS, I CAN TRUST YOU WITH THE BIG THINGS.
AND JESUS, AFTER ALL THESE YEARS, YOU AND YOUR TEAM, I TRUST YOU WITH THE BIG THINGS.
SO THANKS SO MUCH FOR THE WORK YOU'RE, YOU'RE PUTTING INTO THIS.
AND I WANTED TO APOLOGIZE TO JESUS.
I, UH, ADDRESSED YOU INCORRECTLY IF MY MIND WAS WITH THE KIDS THAT I WAS HEARING, AND THEN I WENT AHEAD AND CALLED YOU BY MY DAD'S NAME,
SO I WANTED TO APOLOGIZE FOR THAT, BUT THANK YOU.
NOW WE'RE GONNA HAVE TO GO BACK TO THE TAPE.
SO THANKS FOR RINGING THAT TO OUR ATTENTION.
ANY FURTHER DISCUSSION ON THIS ITEM? NO.
I FORGOT I ALREADY GAVE YOU COUNCIL MEMBER PERRY.
AND I SENT, UH, JESUS, YOU AND JOHN A TEXT MESSAGE ON IT ABOUT OUR STATIC DISPLAYS.
WE NEED TO KEEP THE JENNY IN THERE HANGING FROM THE CEILING.
AND WE NEED A HUEY TO REFLECT THE MILITARY MEDICINE AND, UH, HANG THAT FROM THE PLACE ALSO, AND, AND REFLECT OUR MILITARY HERITAGE HERE IN SAN ANTONIO THROUGH THE AIRPORT.
THANK YOU, COUNCIL MEMBER PERRY.
AND, UH, WHILE, WHILE HE'S ADDING THAT AGAIN INTO THE DESIGN OF THIS NEW TERMINAL, WE WOULD LIKE TO SEE A, A BUILT-IN DISPLAY OF OUR INTERNATIONAL REACH IN OUR SISTER CITY HERITAGE.
SO LOOKING FORWARD TO THAT ELEMENT OF THE, OF THE DESIGN.
OKAY, THAT IS THE DURATION OF OUR PRESENTATION.
THE TIME IS 2:06 PM ON THE 11TH DAY OF MAY.
[ EXECUTIVE SESSION At any time during the meeting, the City Council may recess into executive session in the B Room to consult with the City Attorney's Office (Texas Government Code Section 551.071) and deliberate or discuss any of the following: ]
WE ARE GONNA GO TO EXEC.IT'S GONNA BE VERY BRIEF, BUT THE TIME IS NOW 2:07 PM ON MAY 11TH, 2023.
THE CITY COUNCIL OF THE CITY OF SAN ANTONIO WILL NOW MEET IN EXECUTIVE SESSION TO CONSULT WITH THE CITY ATTORNEY'S OFFICERS WHO IS TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071.
LEGAL ISSUES RELATED TO LITIGATION INVOLVING THE CITY OR PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071.
CONSULTATION WITH ATTORNEY ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO SEC, TEXAS GOVERNMENT CODE SECTION 5 5 1 0.087.
ECONOMIC DEVELOPMENT, THE PURCHASE EXCHANGE LEASE OR VALUE OF REAL PROPERTY PURSUANT TO SECTION GOVERNMENT, TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY OR LEGAL ISSUES RELATED TO C OVID 19 PREPAREDNESS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY.
THE TIME IS NOW 2:42 PM ON WEDNESDAY, MAY 11TH, 2023, I'M, I'M SORRY, ON THURSDAY, MAY 11TH, 2023 AND THE SAN ANTONIO
[01:05:01]
CITY COUNCIL WILL NOW RECONVENE AN OPEN SESSION.NO OFFICIAL ACTION WAS TAKEN IN EXECUTIVE SESSION.
THE SPECIAL SESSION IS NOW ADJOURNED.