[ BRIEFING ONLY  ] [00:00:49] >> MAYOR JONES: GOOD AFTERNOON. THE TIME IS NOW 2:04 P.M. ON WEDNESDAY, MAY 20TH, AND THE CITY OF SAN ANTONIO B SESSION IS CALLED TO ORDER. MADAM CLERK, PLEASE CALL ROLL. >> CLERK: THANK YOU, MADAM CLERK. THIS MEETING IS A BRIEFING ON SEVERAL HIGH-PROFILE AIRPORT CONTRACTS. JEFF, OVER TO YOU. >> COYLE: MAYOR AND COUNCIL, ERIK IS DOING AN EMPLOYEE EVENT RIGHT NOW, SO I'M GOING TO SIT IN FOR HIM UNTIL HE GETS HERE. TODAY WE HAVE THREE SOLICITATIONS RELATED TO THE AIRPORT, AS YOU MENTIONED, ALL LARGE, HIGH-PROFILE CONTRACTS. THE FIRST IS FOR THE CONSTRUCTION MANAGER AT RISK, THE CMAR FOR THE RENOVATION OF TERMINAL A AND B. THE SECOND IS FOR THE COMMON USE PASSENGER PROCESSING SYSTEM, USED BY PASSENGERS TO COME CHECK INTO THEIR AIRLINES IN THE -- BOTH THE NEW TERMINAL AND REPLACING THE EQUIPMENT IN THE EXISTING TERMINALS, AND THE THIRD IS US LAUNCHING OUR CONCESSIONS PROCESS FOR SELECTING RESTAURANTS, BARS AND RETAILERS FOR THE NEW TERMINAL. JESUS IS GOING TO GET TO THOSE. BEFORE I TURN IT OVER TO JESUS, THOUGH, I JUST WANT TO ANNOUNCE SOME GOOD NEWS THAT WE JUST RECEIVED, WHICH IS THE AIRPORT HAS BEEN AWARDED ANOTHER $10 MILLION FOR THE TERMINAL PROGRAM. THIS IS FROM THE AIRPORT TERMINAL PROGRAM -- [APPLAUSE] >> COYLE: KUDOS TO THE TEAM AND THE RELATIONSHIPS THEY HAVE BUILT FROM THE FAA. THIS IS ANOTHER $10 MILLION TOWARDS THE DEVELOPMENT OF THE NEW TERMINAL. IT IS THE LAST YEAR OF THE AIRPORT TERMINAL PROGRAM, WHICH WAS CREATED UNDER THE BIPARTISAN INFRASTRUCTURE LAW, AND WE'VE BEEN SUCCESSFUL IN FOUR OF THE FIVE YEARS IN DRAWING MONEY DOWN. THE $10 MILLION IN THIS ROUND IS THE LARGEST OF ANY MEDIUM HUB IN THE COUNTRY, SO WE'RE ALL VERY EXCITED. HELPS US BUILD WHAT WE'RE ALL DREAMING AND EXCITED ABOUT OUT THERE, SO WITH THAT, I'LL TURN IT OVER TO YOU, JESUS. >> SAENZ: GOOD AFTERNOON, MAYOR AND COUNCIL. GLAD TO BE HERE WITH YOU TODAY. AS MENTIONED, AS WE LOOK AT THE SLIDE, TODAY'S BRIEFING IS OVER THREE SPECIFIC HIGH-PROFILE SOLICITATIONS, IT'S GOING TO BE ONE POST AND TWO PRE AS WE MOVE FORWARD. AS WE TALK ABOUT THESE SOLICITATIONS, AND I'LL GO TO THE NEXT SLIDE QUICKLY, FROM OUR PERSPECTIVE, THE FIRST ONE IS A POSTSOLICITATION ON THE OVERALL EFFORTS WITH REGARDS TO THE CONSTRUCTION MANAGER AT RISK. AS YOU LOOK AT THE DATES OF WHEN IT WAS RELEASED ON A TWO-STEP PROCESS, AS IT RELATES TO THE REQUEST FOR QUALIFICATIONS THAT THEN LED TO THE REQUEST FOR PROPOSALS. EARLIER THIS YEAR, WE BROUGHT TO YOU THE MASTER ARCHITECT, VERY SIMILAR TO THE DELIVERY ON A CONSTRUCTION MANAGER AT RISK AT WHAT WE DID FOR TERMINAL C. WE ARE DOING THE VERY SAME PROCESS FOR WHAT WE'RE DOING IN THE PROCESS FOR THE PRESOLICITATION PROCESS. SO THE DATES ARE THERE. AS WE WENT TO THE QUALIFICATIONS, WE HAD FOUR RESPONDENTS, AND TO THE OVERALL PROCESS, WE LOOKED AT THAT LATE IN 2025, DID THE INITIAL EVALUATIONS, AND THEN HAD THREE FINALISTS THAT WERE REVIEWED AS WE WENT THROUGH THE PROCESS. AND SCORED EVERYONE IN MARCH. WE WENT THROUGH THAT PROCESS, AND AS I BREAK IT DOWN, IT'S IMPORTANT TO KNOW THE TWO-STEP PROCESS. THE RFQ PROCESS IS EXPERIENCE, BACKGROUND AND QUALIFICATIONS WHERE [00:05:03] WE ARE LOOKING AT THE SPECIFIC SUBMITTALS THAT ARE RETURNED TO US THAT ARE OUTLINING AND ALIGNING THE WORK TO BE PERFORMED WITH THE SOLICITATION DOCUMENTATION THAT WENT OUT FOR WHAT'S -- FOR THE WORK TO BE PERFORMED. AND WE LOOKED AT HOW SUCCESSFUL THEY WERE WITH THEIR STAFFING MODELS, THE TEAMS THAT ARE BEING PUT TOGETHER TO ASSEMBLE TO DO THE WORK, ALL OF THE PROJECT SHEETS THAT ARE BEING LOOKED AT. AS WE LOOK AT PRECONSTRUCTION, THE PHASING OF THE WORK, AND THEN THE COMPLETION OF THE CONSTRUCTION WORK TO BE DONE. AND THEN, OF COURSE, HISTORICAL, WHERE HAVE THEY WORKED, WHAT HAVE THEY DONE THAT ALIGN SIMILARLY TO THE WORK THAT WE'RE ASKING FOR. THE PERSONNEL IS A BIG FACTOR. WE LOOKED AT ALL THE RESUMES AND THE ORGANIZATIONAL CHARTS OF HOW THEY ARE PUTTING TOGETHER AND ASSEMBLING THEIR TEAMS. ON THE GENERAL PROPOSED WORK PLAN IS 30 POINTS, THE SUBCONTRACTORS THAT ARE BEING SELECTED FOR THE PLAN AND THE PROCESSES THAT WE'RE GOING TO PUT INTO EFFECT, VERY IMPORTANT -- WE KICK OFF THE WORK TO BE PERFORMED AND WE LOOK AT THE CONSTRUCTION SEQUENCING THAT'S GOING TO BE PERFORMED, EVERYONE IS ON THE SAME PAGE, NOT JUST FROM A CONSTRUCTION STANDPOINT, BUT AS IT ALIGNS TO THE DESIGN WORK THAT'S BEEN ESTABLISHED BY OUR MASTER ARCHITECT AND WORKING CLOSELY WITH THEM. SO THAT'S THE REQUEST FOR QUALIFICATIONS. WE LOOK AT THAT. AS I MENTIONED EARLIER, THAT GETS REDUCED TO THE STEP 2, WHICH IS A REQUEST FOR PROPOSALS. WE HAD THREE SUCCESSFUL CANDIDATES. AGAIN, LOOKED AT -- DELIVERING ALL OF THEIR EXPERIENCE, THEIR PROJECT SHEETS, THEIR PERSONNEL ARE RIGHT IN FRONT OF US, WHO'S IN SAN ANTONIO, WHO'S GOING TO BE HERE, WHO'S GOING TO LIVE HERE, WHO HAS THE LOCAL, YOU KNOW, CONNECTIVITY TO THE WORK THAT'S BEING DONE, AND WE CONTINUE TO BE FOCUSED ON SUSTAINABILITY AND ACCESSIBILITY IN OUR DESIGN STANDARD MODELS OF THE WORK THAT WE'RE DOING. ALL OF THAT WAS ENCOMPASSED INTO THE 70 POINTS, AND THEN WE LOOK AT THE COSTING METHODOLOGY FOR GENERAL CONDITIONS OF THE COST, THE OVERHEAD AND PROFIT, AND THEN MORE IMPORTANTLY AS WE LOOK AT PRECONSTRUCTION COSTS CONTINGENCIES AND HOW ARE THEY PUTTING TOGETHER ALL OF THEIR COSTING MODELS IN THE WAY THE WORK IS GOING TO BE PERFORMED. THAT OVERALL LED TO THE THREE FINAL FIRMS, WHICH WAS MANHATTAN AND JOERS, WHICH WAS A JOINT VENTURE, SCANSA USA AND AUSTIN COMMERCIAL. AS YOU LOOK AT THE SCORING THAT WAS THERE, MANHATTAN REALLY SEPARATED THEMSELVES ON THE REQUEST FOR PROPOSALS AS WE FINALIZED, I'LL JUST SHARE WITH YOU, AS WE LOOK AT SOME OF THE STRENGTHS THAT WERE IN THERE, WHETHER IT WAS IN THE PRESCRUBBING SHUN PHASE, BECAUSE THAT'S VERY IMPORTANT. I REMIND YOU OF THE MASTER WORK -- THE WORK THAT WE'VE DONE TO DO THE DEFINITION OF OUR COMPLETE STANDARDS FOR THE AIRPORT. AS WE REACHED OUT AND TALKED TO 100,000 PLUS OF ALL 10 OF THE DISTRICTS, PEOPLE TOLD US, JESUS, WE WANT SENSE OF PLACE. SO HOW CONNECTED WERE EACH OF THESE FIRMS TO THE DELIVERY OF OUR DESIGN STANDARDS, AND EVERYTHING THAT WE'VE DONE FOR MASTER PLANNING AS WE'VE DONE THAT IN TERMINAL C AND ALIGNED THAT WITH THE WORK TO BE PERFORMED. SPECIFIC ON THE BUDGETING PROCESS AND THEN AS WE CAME TO YOU IN DECEMBER OF THIS PAST YEAR, WE WANT TO GET TO A 90%. AND HOW QUICK CAN YOU GET THERE? THE SEQUENCING AND THE WORK THAT IS OUTLINED HELPS US DELIVER, AND WE LOOKED AT ALL THREE OF THOSE. CONSTRUCTION, HOW MUCH EXPERIENCE YOU HAVE, AND HOW HAVE YOU DONE THE WORK BEFORE. I REMIND YOU THAT THE DELIVERY OF TERMINAL C IS ON A BROWN FIELD, RIGHT, SO THERE'S NOTHING THERE. WHAT WE ARE DOING IN TERMINAL A, TERMINAL B RENOVATIONS IS GOING TO REQUIRE A NUMBER OF SEQUENCING EVENTS AS WE'RE MOVING CARRIERS TO AND FROM AND OUT OF TERMINAL A, B AND C, AS WE ALIGN THOSE EFFORTS WITH THE WORK THAT'S BEING DONE WITH TODAY AND THE DATA BENEFICIAL OCCUPANCY FOR TERMINAL C. ALL OF THOSE FACTORS, THE APPROACH THAT WAS GIVEN TO US FROM THEM IS WHAT WE IDENTIFIED TO SEE THEIR READINESS EFFORT TO DELIVER ON THE PACKAGE THAT WE HAVE SUBMITTED. THE OVERALL CONTRACT AMOUNT IS 260 MILLION, AND THAT'S FUNDED FROM THE AVIATION CAPITAL FUNDS, AS WE TAKE THAT FROM AIRPORT REVENUES AND THE WORK THAT WE DO DAY IN AND DAY OUT AS AN ENTERPRISE FUND. THE NEXT IS A PRESOLICITATION, VERY IMPORTANT ELEMENT AS WELL, AS WE THINK OF THE SPEED OF SERVICE FOR ALL OF OUR PASSENGERS, IT'S THE COMMON USE PASSENGER PROCESSING SYSTEM. THIS IS A REQUEST FOR [00:10:06] COMPETITIVE SEALED PROPOSALS, AND RFCSP, AS WE SAY. THE ESTIMATED CONTRACT VALUE IS 12 MILLION. IT'S A FIVE-YEAR TERM WITH TWO ONE-YEAR OPTIONS. IT'S GOING TO COME OUT OF OUR O & M ACCOUNT. WHAT IS THIS FOR? AS PASSENGERS THAT WANT TO GO DIRECTLY TO A KIOSK AND PERFORM THEIR CHECK-IN PROCESS WITHOUT HAVING TO GO TO AN ACTUAL TICKET COUNTER OR A CARRIER COUNTER, THESE ARE COMMON-USE KIOSKS THAT WE PROVIDE AVAILABLE THROUGHOUT THE AIRPORT TO EXPEDITE PROCESSING FOR OUR PASSENGERS. THIS IS TAKEN INTO CONSIDERATION OF THE ADDITIONAL TICKETING COUNTERS AND CAPACITY THAT WILL BE REQUIRED IN THE NEW TERMINAL C. THE BACKGROUND, EXPERIENCE AND QUALIFICATIONS IS BASED ON RELEVANT EXPERIENCE, ALSO THE TEAM STRUCTURE AND THEIR OVERALL QUALIFICATIONS OF STAFF AND REFERENCES THAT WE OBTAINED FROM OTHER AIRPORTS ON WORK THAT THEY'VE DONE. 50 POINTS FOR THE PROPOSED PLAN AND THE IMPLEMENTATION OF BEING ABLE TO BE READY TO TURN-KEY OPERATION IN 60 DAYS, AND WORK AIRLINE AND AIRPORT COMMUNICATIONS, HOW DO THEY RELATE AND HAVE GOOD RELATIONSHIPS WITH US IN THE WORK THAT THEY ARE PERFORMING. THE PRICING AND COMPENSATION, 15 POINTS, THE IMPLEMENTATION COST, THEIR TRAINING COST, AND THE OVERALL SOFTWARE APPLICATIONS AND THEIR SYSTEM MAINTENANCE OF HOW THEY'RE GOING TO DO THAT IS HOW IT ALIGNS TO THE OVERALL COST OF THIS EFFORT. ON THE RIGHT, YOU SEE THE EVALUATION COMMITTEE, A NUMBER OF CITY REPRESENTATION, JEFF COYLE ASSISTANT CITY MANAGER, MYSELF, JOHN RODRIGUEZ, WHO'S PART OF THE ITSD TEAM, CASSIE SLATER WHO LEADS ITSD, AND STRATEGY FOR US AT THE AIRPORT. DEJUAN JOHNSON WHO'S PART OF THE ITSD TEAM AND ASSIGNED TO THE AIRPORT FOR ALL CAPITAL PROJECTS, APRIL PAYNE WORKING CLOSELY WITH THE AIRLINES AND ANDREW JOHNSON WHO IS A MEMBER OF THE MI MIE AM MI DADE INTERNATIONAL AIRPORT. WE TRY TO DO THAT TO CAPTURE OUTSIDE AIRPORT INTEREST IN WHAT WE'RE DOING. THE SCHEDULE FOR THIS RELEASE OF SOLICITATION WITH YOU ALL'S APPROVAL IS MAY 29TH. THE PROPOSALS ARE DUE IN JULY OF THIS YEAR. EVALUATION, SCORING AND INTERVIEWS IS AUGUST THROUGH SYSTEM, AND THEN A POST SOLICITATION BRIEFING BACK TO YOU ALL FOR YOUR APPROVAL SOMETIME IN OCTOBER, NOVEMBER, OF THIS YEAR. THE NEXT ONE IS THE PRESOLICITATION BRIEFING FOR THE TERMINAL C CONCESSIONS PROGRAM OVERVIEW. VERY BIG SOLICITATION, VERY IMPORTANT FOR OUR AIRPORT, AS WE CONTINUE TO TRY AND EMPHASIZE THE IMPORTANCE OF ONE, WHAT PRODUCT ARE WE DELIVERING TO OUR PASSENGERS. IF YOU HAVEN'T SEEN SOME OF THE NEW ESTABLISHMENTS THAT HAVE OPENED ON THE PREVIOUS TWO PACKAGES THAT WERE DELIVERED, THEY'VE MADE AN INCREDIBLE DIFFERENCE TO WHAT WE HAD BEFORE, TO WHERE WE ARE TODAY. THAT OVERALL PERCENTAGE WAS CLOSE TO 70% OF LOCALS THAT WERE INVOLVED IN THAT EFFORT, AND I GIVE A LOT OF CREDIT TO THE TEAMS AND THE WORK THAT THEY HAVE DONE TO GET TO WHERE WE'RE AT. AS WE LOOK FORWARD TO TERMINAL C, IT IS CLOSE TO A 35, 36,000 SQUARE FOOTAGE FOOTPRINT OF AMOUNT OF CONCESSIONS AND VARIATIONS OF FOOD AND BEVERAGE AS YOU SEE IN PACKAGE NUMBER 1. PACKAGE 2 IS DUTY-FREE, A LITTLE OVER -- CLOSE TO 1700 SQUARE FEET, AND THEN FOOD AND BEVERAGE ON NUMBER THREE AND FOUR, IN A VARIATION OF DIFFERENT MIXTURES. AND I'LL KIND OF GO INTO DETAIL OF WHY THOSE HAVE BEEN PUT INTO THE LOCATIONS THEY'VE BEEN PLACED. VERY STRATEGICALLY PLACED TO ENSURE THAT WE'RE CAPTURING ALL THE PASSENGERS THAT ARE MOVING THROUGH THE NEW TERMINAL COMPLEX. THE PRESOLICITATION ON THIS CONTRACT IS FOR A TERM OF 12 YEARS, AND THAT IS REALLY -- WE HAD THE INDUSTRY DAY, I THINK WE SENT YOU ALL A MEMO AND LET YOU GUYS KNOW WE WERE GOING TO DO THE INDUSTRY DAY FOR ALL OF THE PEOPLE. HAD OVER 100 PEOPLE ATTEND, VERY INTERESTED RESPONDENTS. ONE OF THE BIGGEST -- OR TWO BIG THINGS THAT WE RECEIVED BACK WAS WE DON'T WANT THE DUTY-FREE TO BE INCLUDED INTO THE PACKAGE, WE WANT IT TO BE SEPARATE. THERE'S A LOT OF LEGALITIES THAT ARE INVOLVED WITH RUNNING AND OPERATING A DUTY-FREE ESTABLISHMENT, 1. AND THEN, TWO, ACROSS THE AIRPORT INDUSTRY AT AIRPORTS ACROSS, THEY'RE USUALLY DONE FROM 10 TO 15 YEARS. WE SELECTED 12, BECAUSE WE HEARD A LOT OF PEOPLE SAY WE'D LIKE TO HAVE 12, AND QUITE SIMPLY, IT IS, YOU KNOW, TO HELP THEM BE ABLE TO RECAPTURE SOME OF THEIR CAPITAL COSTS IN WHAT THEY'RE DOING. [00:15:03] FOR FIRST YEAR, AS WE TALK ABOUT THE MINIMUM ANNUAL GUARANTEE FOR US IN THAT -- IN THOSE PARCELS, WE'RE GUARANTEED TO GET 8.6 MILLION. WHEN WE ISSUED THE FIRST TWO PACKAGES IN THE PREVIOUS SOLICITATION FOR THE TRANSFORMATIONS THAT ARE HAPPENING IN TERMINAL A AND B, WE ORIGINALLY CAME AT 25%. WE CAME TO YOU ALL IN A B SESSION, AND YOU ALL TOLD US, HEY, YOU NEED TO MAKE IT AT LEAST 40, JESUS. AND AS I MENTIONED EARLIER, WE GOT TO 70 ON THE LOCAL PARTICIPATION. I REMIND YOU THAT IN THE CURRENT ADMINISTRATION, WE DO NOT HAVE WHAT'S CALLED, YOU KNOW, ACDBE, WHICH IS DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS. SO WE'RE NOT ADHERING TO THAT, BUT FROM OUR STANDPOINT, WE ARE STEADFAST COMMITTED TO CONTINUING TO HAVE THE LOCAL PARTICIPATION THAT WE HAVE. AND THAT'S WHERE THAT'S AT. WE WILL CONTINUE TO, YOU KNOW, STRIVE TO WORK CONTRACTS TO MULTIPLE RESPONDENTS. WE SAY THIS, BUT WE RESERVE THE RIGHT TO AWARD MULTIPLE PACKAGES TO A SINGLE RESPONDENT. IN THE PREVIOUS SOLICITATION, WE SAID ONE COULDN'T GET ALL. IN THIS ONE, WE'RE SAYING EVERYONE COMPETE, AND WE'RE GOING TO GIVE IT TO WHOEVER GIVES US THE BEST PROPOSALS. A LITTLE BREAKDOWN ON THE SQUARE FOOTAGES AND WHAT WE'RE DOING. ON THE FIRST ONE, IT'S THE RETAIL PACKAGE. YOU LOOK AT IT PRETTY CLOSE TO 11,000 SQUARE FEET. I GRAB YOUR ATTENTION TO LOOK AT -- AS YOU LOOK AT THE WAY YOU COME UNTO THE TERMINAL COMPLEX AND YOU LOOK AT THE SECURITY CHECKPOINT, THAT IS THE AREA ON THE RIGHT SIDE OF THE SLIDE. AND YOU SEE THOSE CIRCULAR CAROUSELS, THAT IS ALL THE SECURITY CHECKPOINT. THAT'S WHERE EVERYONE COMES IN THROUGH. WE REALLY WANT TO CAPTURE AS MUCH AS WE CAN, AS PEOPLE GO THROUGH THE CHECKPOINT. THERE'S VERY SPECIFIC DATA ANALYSIS THAT'S BEEN PERFORMED BY THE GROUP THAT WE'VE HIRED ON TO HELP US ALIGN SPECIFICALLY WHERE WE SHOULD PLACE THESE PARCELS. A VARIATION OF MULTIBRAND RETAILS THAT WE'RE LOOKING AT THAT CAN BE UTILIZED IN EACH ONE OF THESE SQUARE FOOTAGES, THE IDENTIFICATION OF THE PINK ON THE BOTTOM IS WHERE THE DUTY-FREE SHOP WILL BE. WE WANT IT TO BE AN OPEN CONCEPT IN THE MIDDLE, AS WE ARE CONSTANTLY TRYING TO INCREASE OUR OVERALL INTERNATIONAL FOOTPRINT ON THE PEOPLE THAT ARE TRAVELING IN AND OUT OF SAN ANTONIO. THE FREE SOLICITATION BRIEFING ON THE FOOD AND BEVERAGE PACKAGE, THERE'S TWO SEPARATE ONES. ON THIS ONE, HEAVY ON THE SIT-DOWN CASUAL DINING RESTAURANT AND THE LOCAL BAR CONCEPT. WE DO HAVE TWO SPECIFIC COFFEE LOCATIONS. WE UNDERSTAND WHAT'S HAPPENING IN TERMINAL A AND TERMINAL B, WE CONSTANTLY HAVE LINES AT OUR COFFEE PLACES. WE'RE WORKING ON THOSE THINGS TO IMPROVE THOSE EFFORTS, AND WE'RE LOOKING AT POSSIBLY REDESIGNING OUR EXISTING STARBUCKS AND BRINGING IN DIFFERENT OPPORTUNITIES THAT HAVE BEEN GIVING TO US, SO WE LOOK AT THAT AS WELL. BUT WE PUT TWO SPECIFIC COFFEE GOURMET SHOPS IN THIS WITH A MIXTURE OF BARS AS WELL AS PEOPLE LOOK FOR THAT AS THEY COME INTO THE AIRPORT. SO THAT'S THIS ONE. AND YOU SEE WHERE SPECIFICALLY THOSE LOCATIONS EXIST. ACE MOVE ON TO THE NEXT ONE, THIS IS, YOU KNOW, A REFLECTION OF WHAT PEOPLE WANT TO SEE TODAY AS YOU GO TO THE PEARL AND THE MARKET INSIDE THE PEARL, WE WANT TO HAVE THAT SIMILAR TYPE OF FOOD HALLMARKETTE INSIDE THE AIRPORT. SO YOU SEE THE SQUARE FOOTAGES, 14,000, ANOTHER WITH 7,000. YOU HAVE A LOT OF INTERNATIONAL PASSENGERS THAT ARRIVE, THEY'RE LOOKING FOR PLACES TO GRAB A COFFEE OR SNACK AS THEY'RE WAITING FOR LOVED ONES TO ARRIVE, WE'VE INCORPORATED THAT AS WELL IN THE EFFORT, WITH ALSO LOCAL BAR AND FOOD AS WELL IN OTHER PLACES. THE PRESOLICITATION TEAM CONSISTS OF JEFF COYLE, ASSISTANT CITY MANAGER AND ASSISTANT CITY MANAGER ALEX LOPEZ, MYSELF, ALISA LIKE, WHO'S LEADING UP ALL OF THE EFFORTS ON THE COMMERCIAL SIDE AND FINANCE ADMINISTRATION FOR WHAT WE DO AT THE AIRPORT. DEBORAH AND BRIAN ARE TWO ADVISORY COMMISSION MEMBERS, THEY'VE BEEN VERY COMMITTED. BRIAN JUST CAME ON BUT HE'S PART OF THE JW GROUP HERE IN SAN ANTONIO, AND INVOLVED HEAVILY ON THE SALES AND MARKETING PIECE. MARIO BASS, WHO EVERYONE KNOW IS PART OF VISIT SAN ANTONIO, THE WORK THAT HE DOES AND THE FOCUS THAT WE HAVE IN TRAVEL AND LEISURE, AND THEN, OF COURSE, GENERAL SALINAS HAS BEEN A CONSUMMATE PROFESSIONAL IN HELPING THE AIRPORT IN WHAT SHE'S DONE WITH THE AIR SERVICE DEVELOPMENT GROUP AND HER CONTINUED INVOLVEMENT IN WHAT WE'RE DOING WITH THE AIRPORTS, ALWAYS BEEN VERY HELPFUL TO WHAT WE DO. THAT'S OUR DIVERSIFIED GROUP THAT'S WORKING TO MAKE THE DECISIONS ON THIS. THE REQUEST FOR PROPOSAL WILL HAVE 10-POINTS FOR EXPERIENCED, BACKGROUND [00:20:03] AND QUALIFICATIONS, IT WILL LOOK HEAVILY AT THE STRUCTURE, WHAT THEY'RE EACH CAPABLE OF AS WE LOOK AT IT, THE DESIGN MATERIALS AND CAPITAL INVESTMENT -- BLESS YOU -- THAT WILL BE INVOLVED SPECIFICALLY WITH ALL THE FLOOR PLANS, THE DESIGN AND QUALITY OF THE MATERIALS, AND OVERALL CAPITAL INVESTMENT OF HOW MUCH THEY'RE GOING TO MAKE INTO EACH ONE OF THE SQUARE FOOTAGES AND THE PARCELS THAT ARE THERE. THE O & M ENVIRONMENTAL SUSTAINABILITY IS ABOUT THE OPERATION AND MAINTENANCE PLAN. WE HAVE A VERY DIFFERENT DELIVERY OF HOW WE'RE GOING DO THE OPERATIONS IN TERMINAL C BASED ON OUR DESIGN STANDARDS. I'LL JUST SHARE WITH YOU, WE DON'T WANT THE TRASH TO BE TAKEN OUT THROUGH THE FRONT DOOR, WE WANT IT TO GO THROUGH THE BACK DOOR, AND WE HAVE VERY SPECIFIC STANDARDS THAT WE'RE IMPROVING ON SO WE IMPROVE THE LEVEL OF SERVICE THAT WE PROVIDE TO OUR PASSENGERS. CONCEPTS AND BRANDS IS A BIG FACTOR AS WE LOOK AT EVERYBODY HAS THEIR PREFERENCE AND WHAT THEY WANT. TAKE ME TO TAQUITA'S WEST AVENUE AND I'M A HAPPY GUY, BUT EVERYONE HAS THEIR PREFERENCES OF WHAT THEY WANT, SO WE HAVE A REALLY CROSS-FUNCTIONAL TEAM THAT'S GOING TO LOOK AT WHAT'S PROPOSED, THE ORGANIZATIONAL MANAGEMENT, THEIR STAFFING AND THEIR TRAINING, AND HOW COMMITTED ARE THEY TO ENSURING THAT WE'RE DOING RIGHT BY OUR EMPLOYEES AND WORKING WITH THEM IS A BIG FACTOR TO US AS WELL. AND THEN THE FINANCIAL PROJECTIONS IS 20 POINTS. WHAT'S OUR RETURN ON INVESTMENT TO US AND HOW COMMITTED ARE THEY TO LOOKING AT THE OVERALL PERCENTAGE OF RENT IN THEIR LONG-TERM COMMITMENT WITH THE CITY OF SAN ANTONIO SPECIFICALLY TO THE SAN ANTONIO INTERNATIONAL AIRPORT. THE SCHEDULE, WHICH IS VERY IMPORTANT TO US, I'VE BEEN TELLING EVERYBODY, TIM AND DAVE, WHO ARE LEADING THE EFFORT FOR US IN THE DEVELOPMENT, SAY JESUS, STOP KIDDING THAT WE'RE GOING TO FINISH EARLY, BECAUSE IT'S NOT FUNNY, BUT WE'RE WORKING TO BE AGGRESSIVE ON OUR SCOPE, SCHEDULE AND BUDGET FOR TERMINAL C. THIS MUST ALIGN WITH IT. SO WE ARE VERY RIGOR AND FOCUSED ON OUR OVERALL SCHEDULE OF DELIVERY, THE RELEASE FOR SOLICITATION, WITH Y'ALL'S APPROVAL, WILL HAPPEN IN JUNE. THE PROPOSALS WILL BE DUE IN SEPTEMBER, THE VALUATION COMMITTEE WILL BE WORKING TO REVIEW THAT OCTOBER TO NOVEMBER, AND THEN A POSTSOLICITATION BRIEFING IN THE LATTER PART OF THIS YEAR OR EARLY JANUARY BACK TO YOU ALL FOR FINAL DECISION. MAYOR AND COUNCIL, THAT CONCLUDES MY PRESENTATION, AND WE'LL MAKE OURSELVES AVAILABLE FOR ANY QUESTIONS YOU HAVE. THANK YOU. >> MAYOR JONES: THANKS, JESUS. YOU ALWAYS DO A VERY THOROUGH JOB. I WANT TO HIGHLIGHT, THERE WERE A COUPLE THINGS THAT CAME OUT IN MY PREBRIEF WITH JEFF THAT I WANTED TO NOTE IN CASE THEY WERE HELPFUL FOR OTHERS. THE FIRST ONE, AS IT'S A POST, AS IT'S A FEDERAL CONTRACT, THERE WEREN'T ANY POINTS FOR LOCAL, FOR THOSE WHO WERE QUESTIONING WHY THERE WASN'T ANY CONSIDERATION THERE. JESUS, HOW DO -- IN THE TERMINAL C-1 IN PARTICULAR, OR AMONG THE VARIOUS THUNDERS, HOW DOES IT LOOK AT VARIOUS PRICE POINTS WITHIN THAT. SOMEBODY MIGHT WANT TO PAY $7 FOR A COFFEE, SOMEBODY MIGHT NOT WANT TO, SO HOW DO WE LOOK AT THE RIGHT MIX OF THOSE THINGS GIVEN THE RANGE OF TRAVELERS THAT WE HAVE UTILIZING THAT TERMINAL? >> SAENZ: GREAT QUESTION, MAYOR, FROM THE STANDPOINT OF WHAT WE DO NOT ONLY IN TERMINAL C, BUT IN THE TERMINALS, WE REALLY TRY TO STAY AS CLOSE AS WE CAN TO STREET PRICING. SO WE HAVE THAT WRITTEN IN SPECIFICS IN SOME OF THE THINGS THAT WE HAVE IN OUR AGREEMENTS WITH -- THAT HAPPEN IN THIS WORLD THAT CHANGE PRICINGS, AS WE TALK ABOUT EGGS AND MILK THESE DAYS AND WHAT THE PRICE IS FOR THAT, SO WE HAVE TO LOOK AT THOSE THINGS AND WE WANT TO MAKE CERTAIN THAT WE CONTINUE TO PROVIDE THEM AN OPPORTUNITY TO BE SUCCESSFUL IN THEIR EFFORTS OF WHAT THEY'RE DOING AT THE AIRPORT, BUT I THINK THE SHORT ANSWER, MAYOR, WE REALLY TRY TO STAY CLOSE TO STREET PRICING AS THEY HAVE BRANDS THAT ARE HERE IN SAN ANTONIO OR IF IT'S A NATIONAL BRAND, WE TRY AND KEEP THEM CLOSE AND COMMITTED TO STREET PRICING. >> MAYOR JONES: DIDN'T HEAR YOU SAY IT, BUT, AGAIN, IN CASE IT'S HELPFUL FOR SOMEONE ELSE, THE COMMON USE PASSENGER, THESE ARE FOR ONLY NONSIGNATORY AIRLINES. >> SAENZ: CORRECT. IF THE SIGNATORY -- OR A NONCOMMON USE AIRLINE WANTS TO USE IT, WE ALLOW THEM TO GET ON THAT PLATFORM, TOO, JUST BECAUSE IT IS FOR -- KNON, THEY'RE NOT CHECKING IN A BAG, THEY WANT TO GET THEIR TICKET AND GO STRAIGHT TO THE TSA CHECKPOINT. >> MAYOR JONES: ON THE [00:25:03] POINT THAT CITY WILL STRIVE TO AWARD CONTRACT TO MULTIPLE RESPONDENTS BUT RESERVES THE RIGHT TO AWARD PACKAGES TO A SINGLE RESPONDENT, THIS ONE JUMPED OUT AT ME. MY CONCERN WITH FOUR MAJOR CONTRACTS, RIGHT, GOING TO ONE VENDOR, WHICH IS NOT AN IMPOSSIBLE SCENARIO BASED ON WHAT YOU'VE DESCRIBED, AS YOU MENTIONED, BASED ON, FRANKLY, THE LESS LEEWAY WE HAVE ON GIVEN OTHER FACTORS, I THINK WE ARE -- I, AT LEAST, WOULD BE COMMITTED TO MAKING SURE WE'RE SPREADING THE WEALTH AS MUCH AS POSSIBLE. AND I RECOGNIZE THERE WAS A CHALLENGE LAST TIME WITH, YOU KNOW, PROHIBITING THAT AND YOU HAD ONE PROVIDING LET'S JUST SAY A DIFFERENT LEVEL OF QUALITY THAN THE SECOND ONE YOU EVENTUALLY BROUGHT ON, BUT I THINK THAT'S A MATTER OF KIND OF BETTER MANAGING CONTRACTS AND NOT NECESSARILY ERASING COMPETITION. SO I'D WELCOME HOW WE MIGHT BE ABLE TO ENSURE QUALITY, BUT ALSO PROTECT THAT COMPETITION. IF YOU WANT TO ELABORATE ANY FURTHER? >> SAENZ: YOU SAID IT PERFECTLY, MAYOR. IT IS EXACTLY THAT. IT'S WHY WE DID IT THE LAST TIME. IT'S IMPORTANT THAT WE DON'T HAVE A MONOPOLY THAT'S RUNNING ALL OF THE CONCESSIONS AT THE AIRPORT, BECAUSE THEN THERE IS NO COMPETITION. SO IN OUR EFFORTS, WE WILL CERTAINLY TAKE YOUR FEEDBACK, IT'S VERY IMPORTANT FOR US THAT WE KEEP THAT COMPETITION AND THE WORK -- PREVIOUS PACKAGE AND WILL BE A PART OF THIS PACKAGE. WE'LL CERTAINLY REVIEW THAT WITH THE TEAM THAT'S GOING TO BE MAKING THE DECISIONS. >> MAYOR JONES: I'M GOING TO GO TO MY COLLEAGUES HERE. THANKS, JESUS. COUNCILMEMBER ALDARETE GAVITO. >> GAVITO: THANK YOU, MAY SUES, FOR THE PRESENTATION. I WANT TO FIRST -- SORRY, I SOUND LIKE A FROG, BUT I WANT TO FIRST START OFF BY SAYING CONGRATULATIONS TO YOU ALL FOR REACHING A DEAL WITH SOUTHWEST AIRLINES. THTHANK YOU FOR WORKING SO DILIGENTLY ON IT. I KNOW Y'ALL'S LEADERSHIP TEAM IS KILLING IT, AND SOUTHWEST HAS BEEN A GREAT PARTNER TO SAN ANTONIO FOR YEARS, SO I'M GLAD WE'RE ABLE TO COME TO AN AGREEMENT WITH THEM. I'M ALSO EXCITED ABOUT THESE UPCOMING PROJECTS. THIS IS AN EXCITING TIME AT THE AIRPORT AND IT'S AN EXCITING TIME FOR OUR CITY. WE KNOW THAT -- AND WE'VE PUSHED ON THIS FOR YEARS, HOW THE AIRPORT IS SO MANY PEOPLE'S FIRST IMPRESSION OF SAN ANTONIO. SO IT'S IMPORTANT THAT WE GET IT RIGHT AND IT WILL ALSO, OBVIOUSLY, HELP FACILITATE ECONOMIC DEVELOPMENT BY ACCOMMODATING MORE FLIGHTS AND MORE AIRLINES. CONGRATS TO MANHATTAN JOERIS, OH, ON THAT, WHEN IS CONSTRUCTION SET TO BEGIN? >> SAENZ: SO WE HAVE A SCHEDULE, COUNCILWOMAN. I DON'T WANT TO GIVE YOU A SPECIFIC DATE JUST YET. WE NEED TO BRING THEM IN VERY SIMILAR TO WHAT WE DID WITH THE CMAR AND MASTER ARCHITECT FOR TERMINAL C. WE'VE ALREADY STARTED TO PLAN BASED ON YOUR ALL'S APPROVAL TO BRING THOSE GROUPS IN ONCE WE ISSUE THOSE NOTICE TO PROCEED TO HAVE A MEETING. WE WANT THE MASTER ARCHITECT TO BE CONNECTED AT THE HIP WITH OUR CONSTRUCTION MANAGER THAT WE HAVE SELECTED AND BEGIN THE WORK TO BE PROCESSED. WE FEEL LIKE WE CAN START THE DESIGN WORK. WE HAVE A COMMITMENT TO THE AIRLINES IN EARLY/MID NEXT YEAR TO COME WITH AT LEAST 10% DESIGN. ONCE WE GET TO THAT 90% DESIGN, WHICH WE FEEL WILL BE SOMETIME IN 2028 IS WHERE WE FEEL WE WILL START ON THAT CONSTRUCTION, WE DON'T WANT TO OVERLAP THAT CONSTRUCTION WITH THE WORK THAT WE'RE DOING AT TERMINAL C. ONCE THAT'S COMPLETED IN TERM NATURAL C AND WE'VE RECEIVED THE DATE OF BENEFICIAL OCCUPANCY FOR THE WORK THAT'S GOING TO BE DONE IN COMPLETION FOR THE OPENING OF TERMINAL C, WE'RE GOING TO KICK OFF AND START WORKING ON THE RENOVATIONS TO TERMINAL A AND TERMINAL B. >> GAVITO: OKAY. THANK YOU FOR THAT. THE REASON I'M ASKING IS BECAUSE I THINK IT'S GOING TO BE EXTREMELY IMPORTANT FOR US TO BE ABLE TO COMMUNICATE TO OUR RESIDENTS SOME OF WHOM WHO MIGHT BE BUSINESS TRAVELERS AND ALWAYS USE THE AIRPORT BUT SOME WHO ARE NOT AND ARE TRAVELING TO GO SEE GRANDCHILDREN OR MAYBE ONCE A YEAR OR MAYBE ONCE EVERY OTHER COUPLE YEARS. WE DON'T WANT THEM TO ARRIVE TO THE AIRPORT AND BE SURPRISED BY ALL SORTS OF CLOSURES, OPERATIONS BEING DIFFICULT, AND THEN IT CREATES A BAD EXPERIENCE FOR OUR RESIDENTS. SO I'M JUST GOING TO PUT THAT IN Y'ALL'S EARS SO THAT WAY WE CAN HAVE A LONG RUNWAY TO COMMUNICATE TO OUR RESIDENTS ABOUT CHANGES AT THE AIRPORTS AND WHAT -- TO THE AIRPORT AND WHAT TO EXPECT. BECAUSE THAT'S GOING TO BE EXTREMELY IMPORTANT FOR US TO LET OUR RESIDENTS KNOW ABOUT. >> SAENZ: VERY MUCH AGREE WITH YOU, COUNCILWOMAN. >> GAVITO: ON SLIDE 9, YOU KNOW, ONE OF THE THINGS -- AND UNDER THE LAST ADMINISTRATION UNDER MAYOR NIRENBERG, I KNOW THERE WAS SEVERAL OF US, COUNCILMAN MCKEE-RODRIGUEZ, COUNCILWOMAN KAUR AND COUNCILWOMAN VIAGRAN WHO WERE REALLY PUSHING ON US TO BE HYPERLOCAL WITH THE BUSINESSES AT THE AIRPORT. AND SO ACTUALLY, IT'S WHAT PROMPTED ME TO DO WHAT WE'RE CALLING OUR -- BLESS YOU -- OUR LOCAL MEDIA CCR, REALLY LOOK AT HOW THE CITY SPENDS OUR [00:30:07] MONEY AND SEE HOW MUCH WE'RE INVESTING IN OUR LOCAL BUSINESSES. WE ACTUALLY JUST MET WITH THE HISPANIC CHAMBER OF COMMERCE FOR FEEDBACK ON IT, BUT, YOU KNOW, I TOOK THAT -- I TOOK THE ENERGY FROM WHAT WE SAW WITH THE AIRPORT AND HOW WE WERE PUSHING AND PUSHING FOR LOCAL BUSINESSES, SO I WAS KIND OF CURIOUS ON SLIDE 10 AND 11 AND 12, OR AT LEAST ON THE PRINTOUTS, YOU KNOW, IS THERE DIFFERENT WAYS THAT WE CAN STILL PUSH FOR, LIKE, THIS GOURMET COFFEE OR THE CAFES TO BE LOCAL? BECAUSE WE HAVE A LOT OF GREAT COFFEE SHOPS IN SAN ANTONIO. RIGHT NOW WHEN OUR SERVICE INDUSTRY IS STRUGGLING, WE WOULD LOVE TO GIVE THEM OPPORTUNITIES TO BE AT THE AIRPORT. >> SAENZ: THE WAY I'D SHARE IT WITH YOU, I'LL JUST GIVE YOU THE MOST RECENT ONE, AND I COULD SIT HERE AND TALK TO YOU FOREVER ON HOW INCREDIBLE, YOU KNOW, TRAY PIZZERIA IS DOING WITH CHEF DAYDE, CHEF JOHNNY IS MAKING IT HAPPEN AT OUR AIRPORT FOR WHAT HE DOES. ONE, THAT BRINGS PEOPLE TO TEARS, AND SHE AND I WERE CRYING A FEW DAYS AGO, BECAUSE WE JUST OPENED FARM TABLE. CHEF ELIZABETH HAS BEEN INCREDIBLY HAPPY, SO THOSE LITTLE POCKETS, AS THOSE EFFORTS ARE DELIVERED TO US IN THIS PROPOSAL IS WHERE THE TEAM'S GOING TO CAPTURE THE COMMITMENT, THE DIVERSIFICATION OF WHAT'S GOING TO BE OFFERED TO US, AND LOOK AT -- SAN ANTONIO. AS I MENTIONED, IT'S PRETTY MUCH A 70%. NOW, I WILL TELL YOU, WE'VE GOT TO BE CONSIDERATE AND BALANCED WITH REGARDS TO SOME OF THE NATIONAL BRANDS, BECAUSE THERE ARE INDIVIDUALS THAT TRAVEL THROUGH OUR AIRPORT THAT ONLY WANT TO GO TO SPECIFIC NATURAL BRANDS, RIGHT? I GIVE STARBUCKS AS AN EXAMPLE BECAUSE THAT'S THE ONE THAT'S THERE, BUT WE'VE GOT TO HAVE OTHER OFFERINGS AS WELL. SO YOU SAW THE PRESECURITY/POSTSECURITY, WE REALLY WANT TO INCREASE OUR COFFEE OPPORTUNITIES AS PEOPLE ARE CONSTANTLY LOOKING FOR THAT. >> GAVITO: YEAH, AND I DEFINITELY KNOW, AND I KNOW THAT WE'VE TALKED ABOUT IT BEFORE, AND THANK YOU FOR HELPING US UNDERSTAND THAT BALANCE, RIGHT. PEOPLE WANT -- SOMETIMES THEY WANT THE BRANDS THEY RECOGNIZE ALL OVER THE NATION, AND WE GET THAT. BUT I THINK AT EVERY OPPORTUNITY THAT WE CAN, AGAIN, WITH THAT BALANCE IN MIND, WE SHOULD BE PICKING UP OUR -- HIGHLIGHTING OUR LOCAL BUSINESSES, TOO, JUST BECAUSE -- AND I THINK ESPECIALLY EVEN WITH COFFEE, RIGHT? IT'S AN EASY THING THAT PEOPLE CAN GET PLUGGED INTO. AND THEN WE'RE FURTHER SUPPORTIVE OF OUR LOCAL BUSINESSES THAT WAY. BUT THANKS, AGAIN, FOR ALL Y'ALL DO. Y'ALL ARE KILLING IT. THANK YOU. >> MAYOR JONES: THANK YOU. COUNCILMEMBER MEZA. >> GONZALEZ: THANK YOU, MAYOR. THANK YOU TO THE PRESENTATION AND TO YOUR TEAM. I SEE SOME OF YOUR TEAM MEMBERS OUT HERE. AND IF YOU HAVEN'T TAKEN A TOUR OF THE AIRPORT, TO MY COLLEAGUES, I RECOMMEND IT. IT REALLY IS GOOD STUFF THAT YOU'RE DOING THERE. SO WE KNOW THAT MODERN, SAFE, EFFICIENT AIRPORT IS A CRITICAL PART OF SAN ANTONIO'S ECONOMIC DEVELOPMENT. ESPECIALLY AS WE LOOK TO EXPAND AND STRE STRENGTHEN OUR ABILITY TO COMPETE FOR NEW AIR SERVICES AND CONVENTIONS AND GENERAL ECONOMIC DEVELOPMENT CONVERSATIONS WE HAVE EVERY WEEK, SO JUST ON THE CMRA, WHAT'S THE -- JUST TO REMIND FOLKS, WHAT'S THE SPECIFIC BREAKDOWN OF FUNDING SOURCES WITHIN THE AVIATION CAPITAL FUND FOR THIS PROJECT? >> SAENZ: FOR THE TERMINAL A, TERMINAL B RENOVATIONS, IT'S 260 MILLION THAT'S BEING REQUESTED IN THE SOLICITATION TO COVER THE CONSTRUCTION COST FOR THAT CONSTRUCTION MANAGER AT RISK. WE HAVE OTHER ANCILLARY COSTS THAT GO INTO SOFT COSTS AS IT RELATES TO THE DESIGN, THE PMCM EFFORTS AND OTHER CONTINGENCIES THAT ARE ASSOCIATED THAT GETS US TO A TOTAL OF 300 MILLION. IN THE AGREEMENT THAT WE HAVE WITH THE AIRLINES, THANK YOU FOR SAYING THAT, COUNCILWOMAN GAVITO WITH REGARD TO SOUTHWEST, WE'VE GOT THEM ALL SIGNED. WE'RE EXCITED ABOUT THE STEPS GOING FORWARD. WE HAVE 2 MILLION APPROPRIATED FOR TERMINAL A AND 100 APPROPRIATE FOR TERMINAL B THAT GIVES US A TOTAL AMOUNT OF 300 MILLION. >> WALSH: 200. NOT 2 MILLION. >> MAYOR JONES: THAT WOULD BE A SMALL AIRPORT. THAT WOULD BE A SEAT. >> GONZALEZ: THANK YOU FOR THAT. A YEAR AGO I KNOW THE AIRPORT WAS PURSUING 95 MILLION IN FEDERAL FUNDING FOR FY '26, HOW MUCH OF THAT HAS BEEN AWARDED OR OBLIGATED? >> SAENZ: THE 10 MILLION GETS US TO A CERTAIN NUMBER. I DON'T HAVE THAT OFF THE TOP OF MY HEAD, BUT ALYSSA OR SOMEONE BEHIND ME,. >> GONZALEZ: IT GETS US CLOSER? >> SAENZ: IT GETS US REALLY CLOSE AS WE LOOK AT THE OVERALL FOOTPRINT. [00:35:02] >> COYLE: JUST REVIEWING A PRESS RELEASE, I DON'T THINK JESUS HAS HAD A CHANCE TO SEE YET, BUT SINCE 2022, THE AIRPORT'S GOTTEN 188 MILLION IN FEDERAL GRANTS. THIS YEAR, WHICH IS WHAT I THINK YOU ASKED ABOUT, WE'VE STILL GOT SOME VERY BIG ONES THAT ARE OUT THERE, PARTICULARLY A R AZ E GRANT, SO THIS YEAR IS NOT SETTLED YET. 188 SINCE -- IN THE LAST FEW YEARS. >> GONZALEZ: AWESOME. THANK YOU. AND ON THE COMMON USE SYSTEM, I THINK COUNCILMEMBER ALLUDED TO THIS ALSO, BUT JUST WHAT DOES THAT LOOK LIKE FROM A PASSENGER'S PERSPECTIVE? WILL THEY NOTICE ANY CHANGES HOW THEY CHECK IN, OR IS THAT ON THE BACK END? >> SAENZ: GREAT QUESTION. WE'VE LOOKED AT -- AS YOU LOOK AT OUR 3D VIRTUAL REALITY AUGMENTED EFFORT OF WHAT WE'VE GOT, I THINK SOME OF YOU HAVE BEEN ABLE TO EXPERIENCE THE OCULUS GLASSES AND THE WAY WE LOOK AT IT, SO WE'RE LOOKING AT THE PASSENGER JOURNEY, AS THEY ARE COMING INTO THE AIRPORT AND GOING THROUGH TICKETING AND GOING THROUGH THE TSA CHECKPOINT. IT'S UNFORTUNATE TERMINAL A AND TERMINAL B ARE THE WAY THEY ARE, BUT AS WE DO THE REHABILITATION AND THE RENOVATIONS OF A AND B, WE WANT TO STRA TEEJ CLICK PLACE THOSE IN LOCATIONS THAT MAKE IT EASY FOR THE PASSENGER. I HATE TO USE THIS WORD, BUT HISTORICALLY, IT'S BEEN A BANDAID APPROACH. WHERE IS A SPACE THAT'S AVAILABLE AND WE PUT IT THERE AND IT WORKS, BUT IT MAY NOT BE GOOD FOR EVERYONE. THOSE ARE THINGS WE'RE VERY FOCUSED ON IN THE DESIGN WHERE WE PLACE THOSE STRATEGICALLY TO MAKE SURE WE'RE NOT IMPACTING EXISTING FOOTPRINTS, WHETHER IT'S THE COUNTER OR THE SECURITY CHECKPOINT OR THE PORTAL AS YOU ENTER INTO THE SECURITY AREA. >> GONZALEZ: THE AIRPORTS THE SAME SIZE AS US HAVE INCORPORATED THE COMMON USE SYSTEM. >> SAENZ: YES, MA'AM. I WOULD SAY YOU HAVE CLOSE TO 350. ALL THE ONES IN TEXAS HAVE KIOSKS. >> GONZALEZ: OKAY. >> SAENZ: BUT IF YOU LOOK AT ALL THE COMMERCIAL AIRPORTS ACROSS THE UNITED STATES, SOME OF THEM HAVE SOME FORM OF KIOSK THAT THEY'RE MOVING TOWARDS BECAUSE PROCESSES WANT TO GO, DO THEIR PROCESS AND GO. AS MAYOR POINTED OUT EARLIER, RIGHTFULLY SO, YOU'VE GOT THE SIGNATORY CARRIERS, THEY HAVE THEIR PROPRIETARY THAT THEY WANT TO STAY ON, THIS IS HOW WE MATCH THAT FOR THE CARRIERS THAT DON'T HAVE THAT AVAILABILITY. >> GONZALEZ: GREAT. ON THE CONCESSIONS, SLIDE 9, YOU KNOW, TALKS ABOUT THE RESERVING THE RIGHT TO AWARD -- THE SPECIFIC CONDITIONS THAT WOULD HAVE TO BE IN PLACE FOR THE CITY TO FEEL COMPELLED TO DO THAT? >> SAENZ: TO NOT ISSUE IT ALL TO ONE? >> GONZALEZ: OR YOU'RE RESERVING THAT RIGHT, WHAT CONDITIONS WOULD BE IN PLACE FOR YOU TO -- >> SAENZ: I THINK IT GOES BACK TO THE DISCUSSION WITH THE MAYOR. I THINK SHE'S ABSOLUTELY CORRECT AS IT RELATES TO THE SPIRIT OF COMPETITION. WE'RE GOING TO LOOK AT IT AND SAY WE WANT TO HAVE A COMPETITIVE EFFORT HERE. THEY'RE ALL GREAT, IF I TALK ABOUT ALL THE ONES THAT HAVE BEEN INTERESTED IN WANTING TO BE HERE IN SAN ANTONIO. THEY'RE ALL GREAT, BUT WE WANT TO DIVERSIFY OUR PORTFOLIO, VERY MUCH AS WE'RE DOING WITH ALL OF OUR COMMERCIAL EFFORTS AND ENSURE THAT WE GIVE EVERYBODY AN OPPORTUNITY AND CREATE COMPETITION. PLEASE. >> COYLE: COUNCILWOMAN, I JUST -- WE START FROM THE STANDPOINT THAT WE HAVE FOUR PACKAGES HERE. IF WE WANTED TO JUST AWARD ONE, WE'D DO ONE PACKAGE. SO THE IDEA AND THE INTENT IS FOR US TO HAVE MULTIPLE TEAMS SUBMIT GOOD PROPOSALS THAT CREATE MIX AND COMPETITION IN THE AIRPORT. THE REFERENCE TO RESERVING THE RIGHT IS REALLY BASED ON WHAT HAPPENED LAST TIME WHERE WE HAD TWO PROPOSALS FOR A FOOD AND BEVERAGE AND ONE WAS MUCH BETTER THAN THE OTHER AND WE JUST DIDN'T WANT TO SETTLE FOR A LESSER PACKAGE. AND BECAUSE WE HAD PUT A RESTRICTION ON OURSELF THAT NO FIRM COULD GET MORE THAN ONE, WE ENDED UP TAKING ANOTHER NINE MONTHS TO DO ANOTHER SOLICITATION. WE DON'T HAVE THAT TIME FLEXIBILITY THIS POINT. THESE NEED TO BE OPEN WHEN THE NEW TERMINAL IS OPEN, SO WE'RE LEAVING THAT POSSIBILITY OPEN, BUT WE FULLY INTEND TO HAVE MULTIPLE TEAMS BIDDING AND ULTIMATELY A GOOD MIX OF CONCESSIONS OUT THERE. >> GONZALEZ: GREAT. THANK YOU. AND I THINK JUST, YOU KNOW -- I THINK A LOT OF US HERE, AND TO YOUR POINT, COUNCILWOMAN, ON HYPER LOCAL PARTICIPATION AND THE AIRPORT SEEKING TO -- I THINK IT WAS A 46% LOCAL CONCEPT REPRESENTATION, I GUESS HOW DOES THAT WORK IF IT'S NOT IN THE REQUEST FOR PROPOSAL? >> SAENZ: IT'S WHAT WE'RE PUTTING IN THE SOLICITATION TO PUT ALL OF THEM ON NOTICE THAT THIS IS OUR EXPECTATION. AND THAT WILL BE EVENLY DISTRIBUTED IN THE WAY THE SCORING IS FINALIZED TO ENSURE THIS IS OUR PROPOSAL. THIS IS WHAT OUR EXPECTATION IS, AS YOU DO BUSINESS WITH THIS CITY AND SPECIFICALLY THE [00:40:05] AIRPORT. OUR PREFERENCE IS TO HAVE 46%. WE FEEL LIKE WE'RE GOING TO WAY OVERSHOOT THAT, JUST BASED ON THE HISTORICAL EFFORTS THAT WE'VE HAD, AND THE INTEREST THAT WE HAVE FROM LOCAL, YOU KNOW, INSTITUTIONS AND BUSINESSES HERE IN SAN ANTONIO THAT WANT TO BE A PART OF THIS. >> GONZALEZ: THANK YOU FOR THAT. LET ME SEE. I THINK THAT'S IT. WELL, THANK YOU, AGAIN, FOR THE PRESENTATION. I LOOK FORWARD TO CONTINUED UPDATES AND I THINK WE'RE ALL GOING TO SAY THE SAME THING, BUT, YOU KNOW, THIS IS THAT FIRST IMPRESSION, RIGHT, AND I THINK WE ALL LOOK AT AIRPORTS DIFFERENTLY. IF YOU WORK AT THE CITY FOR -- IN THE LAST FIVE YEARS, YOU PROBABLY JUST -- WHEN YOU GO TO ANOTHER AIRPORT, YOU LOOK AT IT IN SUCH A DIFFERENT WAY NOW. SO THANK YOU, AGAIN, FOR ALL THE WORK THAT YOU GUYS ARE DOING AND LOOK FORWARD TO HEARING MORE AS WE GO ALONG. THANK YOU. >> MAYOR JONES: THANK YOU. JESUS, IT CAME UP IN MY PREBRIEF, AND IT REALLY BUILDS OFF WHAT THE COUNCILWOMAN JUST DESCRIBED, AND SOME OF MY CONCERNS AS WELL WHEN YOU ALL PROVIDED THE EXAMPLE OF, HEY, WE'RE DOING THIS BECAUSE WE WANT TO AVOID SOME OF THE MISTAKES THAT WE MADE -- NOT MISTAKES, BUT MISSTEPS, RIGHT, THAT WERE MADE THROUGH NO FAULT OF ANYBODY, BUT SO THOSE THINGS THAT ARE IN PLACE, TO SEEK RECOURSE, RIGHT, IF A CONTRACT IS NOT PERFORMING AND SOME OF THE THINGS THAT JEFF WAS KIND ENOUGH TO MENTION, OF COURSE, THERE'S ALWAYS THE MINIMUM ANNUAL GUARANTEE, RIGHT, WHICH YOU ALL POINT OUT ON YOUR SLIDE. THERE'S THE MINIMUM OPERATING HOURS, OF COURSE, SANCTIONS FOR A PERFORMANCE VIOLATIONS, DEFAULT PROVISIONS, REFURBISHMENT AND REINVESTMENT OBLIGATIONS. SO IN THE INSTANCE WHERE YOU TALKED ABOUT THE SECOND VENDOR, OR I GUESS PACKAGE, NOT PERFORMING UP TO PAR, WHAT -- WHAT STEPS WERE TAKEN TO REMEDIATE THEIR PERFORMANCE AND ARE THERE OTHER KIND OF SPECIFIC LESSONS LEARNED FROM THAT EXPERIENCE THAT ARE HELPFUL IN SEEKING POTENTIAL RECOURSE THIS TIME AROUND? >> SAENZ: A COUPLE OF QUICK ANSWERS TO THAT, MAYOR. ONE, IS STANDARDIZATION OF WHAT OUR EXPECTATION IS AND THE WAY THAT THAT CONCESSIONAIRE IS OPERATING, RIGHT? WE HAVE CUSTOMERS THAT HAVE EXPECTATIONS, THEY WILL CLEARLY MAKE DECISIONS ON WHAT AIRPORT THEY TRAVEL OUT OF BASED ON OUR ABILITY TO DELIVER SPECIFICALLY ON THE CONCESSIONS. SO THE TEAM HAS ALREADY BEGAN TO ESTABLISH STANDARDS ON THE TIMES YOU OPEN, YOUR DELIVERY AND WHAT HAPPENS DAY TO DAY, SEVEN DAYS A WEEK ON HOW EFFECTIVE WE'RE DELIVERING THE SERVICE THAT WE NEED TO DELIVER. THE SECOND PIECE TO THAT -- >> SEGOVIA: BEFORE YOU GO ON, JESUS, CAN I CLARIFY YOU SOMETHING FOR YOU, MAYOR. THE PREVIOUS EXPERIENCE, HE WAS TALKING ABOUT A SOLICITATION. THEREFORE NO CONTRACT WAS AWARDED TO THAT PARTY. SO THERE WAS NO ISSUE IN TERMS OF PERFORMING TO A CONTRACT, BECAUSE THE CONTRACT WAS NEVER AWARDED. IT WAS A SOLICITATION THAT WAS BELOW PAR. >> MAYOR JONES: THANK YOU. SO I'M SPEAKING SPECIFICALLY, THOUGH, TO THE PERFORMANCE WHERE IT WAS LESS THAN WHAT WAS EXPECTED. IN THAT INSTANCE, HOW DID YOU ADDRESS THAT? THANK YOU. >> SAENZ: YEAH, IT IS BASED ON THE PERFORMANCE OF HOW THEY'RE OPERATING TO THE STANDARDS THAT WE'RE ESTABLISHING, AND THE SECOND PIECE TO THAT IS THE REVENUES THAT ARE BEING GENERATED AND HOW ARE THEY HELPING PERFORM FOR THE OVERALL FISCAL RESPONSIBILITY OF THE AIRPORT. AND WE LOOK AT THOSE, WE LOOK AT THOSE MONTHLY, WE HAVE MONTHLY REPORTS THAT ARE GENERATED, AND WE CONTINUE TO ADDRESS THOSE AS WE'RE WORKING WITH THEM. WHAT IS OUR REVENUE PER SQUARE FOOT AND HOW DO WE INCREASE THAT FOR EACH PARCEL THAT'S OUT THERE. >> MAYOR JONES: THANK YOU. COUNCILMEMBER SPEARS? >> SPEARS: THANKS THANKS, MAYOR. IT'S NO SECRET, I'M YOUR BIGGEST FAN AND CHEERLEADER FOR THE AIRPORT, I LOVE THAT IT'S IN DISTRICT 9 AND I REALLY APPRECIATE YOUR PRESENTATION. CONGRATULATIONS ON THE $10 MILLION AWARD FOR THE ATP. THAT'S SIGNIFICANT. AND EVERYONE SHOULD TAKE NOTICE THAT YOU'RE CONTINUING TO GO AFTER THOSE GRANTS AND IT'S REALLY SMART. IT SHOWS GREAT RESPONSIBILITY. I HAD A COUPLE QUESTIONS. ON SLIDE 4, CAN YOU POINT TO ANYTHING THAT COMES TO MIND THAT HAD MANHATTAN-JOERIS STAND APART SPECIFICALLY IN THOSE AREAS? >> SAENZ: YEAH, I'D SHARE WITH YOU JUST A COUPLE OF QUICK NOTES, AND THIS IS FROM ALL OF THE -- ALL OF THE TEAM THAT MADE THE DECISIONS. WE FEEL LIKE ALL THREE WERE VERY COMPETITIVE. AND ALL OF THEM ARE VERY WELL EXPERIENCED. SOME OF THE SEPARATION ITEMS THAT WE REALLY LOOKED AT WAS THE PRECONSTRUCTION PLANS AND THE PHASING. IT'S VERY IMPORTANT TO US AS WE LOOK AT THE CMAR PROCESS AND OUR ABILITY TO DELIVER, WE'RE VERY HAPPY THAT WE GET TO TELL YOU TERMINAL C IS ON SCOPE, ON SCHEDULE AND ON BUDGET, BUT IF YOU LOOK AT THE DILL GANS AND THE WORK THAT WAS DONE IN ORDER FOR US TO GET THERE, THERE'S A TON OF WORK THAT WAS PERFORMED. SO WE REALLY TOOK THAT CRITICAL TO THE WAY THAT THE RESPONDENTS DELIVERED THAT. SKANSKA HAD A VERY STRONG DESIGN COORDINATION AND COMMITMENT TO OUR SAT STANDARDS. IN THE ACTUAL INTERVIEW, THEY WERE VERY SPECIFIC ABOUT OUR NEW DESIGN STANDARDS. AND THAT LET US KNOW THAT [00:45:05] THEY READ OUR DESIGN MANUAL. I TELL PEOPLE ALL THE TIME, IF YOU HAVE A HARD TIME FALLING ASLEEP, GO LOOK AT OUR WEBSITE, THERE'S 11 CHAPTERS IN THERE, YOU'LL FALL ASLEEP REALLY FAST READING THAT STUFF. AND MORE IMPORTANT THEIR SENSE OF COMMITMENT TO SAN ANTONIO. AS YOU LOOK AT MANHATTAN, BIG COMPANY ACROSS THE AVIATION INJURY, YOU LOOK AT THE TIE TO JOERIS, WHAT THAT MEANS TO SAN ANTONIO, THEY HAD A REALLY GOOD SENSE OF PLACE TO WHAT THAT MEANS HERE, AND THEY HAD A REALLY CLEAR SCHEDULE TO THE ABILITY TO DELIVER ON THE G & P. WE WANT TO GET TO A TIMELINE OF WHAT WE WANT TO DO SO THAT WHEN YOU LOOK AT A, B AND C, ALL THREE TERMINALS, YOU'RE NOT GOING TO SEE MUCH DIFFERENCE. >> SPEARS: THAT'S GOOD. CAN YOU HELP US UNDERSTAND -- I'VE USED THE CUPPS AT SOME OF THE OTHER AIRPORTS, BUT I THINK I JUST HAPPENED ACROSS IT. DO YOU KNOW IF THE NONSIGNATORY AIRLINES ARE PUSHING -- ARE GOING TO BE ABLE TO PUSH THEIR FLYERS TO USE THOSE CUPPS KIOSKS? >> SAENZ: IT IS REALLY ABOUT COORDINATING AND ORGANIZING OUR COMMUNICATION TO THE PASSENGER AS WE TALK ABOUT THE JOURNEY. SO IT'S OUR EFFORT IN BEING VERY CONNECTED TO OUR CARRIERS AND ENSURING WE'RE LISTENING TO THEM AS TO WHAT THEIR NEEDS ARE. AND IN PARALLEL, LISTENING TO OUR PASSENGERS AND MATCHING THAT. SO THOSE TWO COME TOGETHER, AND THAT'S WHAT THIS IS ABOUT. SOMETIMES, AS I SHARED EARLIER, IF WHEN YOU WALK TERMINAL A, IT'S VERY EASY FOR YOU TO SAY, WELL, WHERE ARE THOSE COMMON? THEY'RE BEHIND SOME WALLS AND COUNTERS THAT YOU CAN'T FIND. THAT WAS THE BEST CHOICE WE HAD. AS WE LOOK AT TERMINAL C AND AS WE LOOK AT YOUR SUPPORT FOR THIS EFFORT, WE'RE GOING TO BE VERY SPECIFIC ABOUT THE LOCATIONS AND WHERE THOSE GO, AND AS WE DO THE REHABILITATION OF TERMINAL A AND B, WE WILL DO THAT AS WELL. AND THE ANSWER, I MEAN, ULTIMATELY, IS, YES, ALL CARRIERS WANT TO DO THAT. AS WE LOOK AT AI AND THE CHANGE OF WHAT THE PASSENGER WANTS, PEOPLE WANT THAT SPEED. THEY WANT TO BE ABLE TO GO GET THIS AND GRAB -- AND GO SIT DOWN IN THE HOLD ROOM AND GET READY FOR THEIR FLIGHT. >> SPEARS: MIC KEEPS TURNING OFF. THEY DON'T WANT ME TO TALK TODAY. SO HOW IS THE TURNOUT AT THE INDUSTRY DAY? >> SAENZ: INDUSTRY DAY, I'LL ASK ALYSSA OR TIM TO COME TELL ME, TOTAL NUMBER OF RESPONDENTS, BUT IT WAS OVER 100. WE HAD NOT ONLY PARTICIPATION HERE LOCALLY, NOT ONLY REGIONALLY, BUT I WOULD SAY EVEN NATIONALLY. WE HAD PEOPLE FROM DIFFERENT PARTS OF THE COUNTRY TO COME IN AND ARE INTERESTED IN BEING A PART OF THIS PROCESS. SO WE EXPECT IT TO BE VERY COMPETITIVE. >> SPEARS: THAT'S GOOD. I WANT TO ECHO WHAT MY COLLEAGUES HAVE SAID ABOUT, YOU KNOW, A FOCUS ON LOCAL. I DO UNDERSTAND THE NEED FOR NATIONAL, ESPECIALLY FAMILIES TRAVELING, THEIR KIDS WANT CHICK-FIL-A OR THEY WANT RAISING CANE OR SOMETHING LIKE THAT THAT'S RECOGNIZABLE, BY YOU ALSO WANT TO TRY THE NATURAL FLAVORS, WHICH IS REALLY IMPORTANT, TOO. I WANT TO APPLAUD -- I ALSO ECHO THE COFFEE ASPECT. THAT'S IMPORTANT. SOMEHOW WE'VE BECOME A LEADER IN DIFFERENT KINDS OF COFFEE HERE IN SAN ANTONIO. BUT LEANING INTO THE FOOD SIDE OF THINGS, I THINK WE CAN EQUALLY DO THAT ON THE RETAIL SIDE, AND OBVIOUSLY THE SPURS ARE GOING TO BE AN IMPORTANT PIECE OF THAT, BUT THERE'S A LOT OF THINGS WE HAVE RETAIL-WISE THAT I THINK ARE OPPORTUNITIES FOR US. AND I -- I LOVE THAT WE HAVE THE MILITARY CITY USA STORE, THAT'S SUPER SMART, AND ALSO VERY, VERY INDICATIVE OF WHAT WE ARE AS A COMMUNITY, SO THAT'S A GREAT THING THAT WE DID BACK IN MARCH. I'M NOTICING HOW THOUGHTFUL EVERY -- Y'ALL HAVE BEEN. I'VE BEEN UP THERE QUITE A BIT. I WENT TO THE FOR RAN TO INAUGURAL FLIGHT. SO MUCH ATTENTION TO DETAIL, DOWN TO JUST HOW YOU'RE DECORATING WHEN THEY WALK IN F. YOU KNOW, TALKING WITH APRIL ABOUT THAT, AND JUST -- I REALLY APPRECIATE THE ATTENTION TO THOSE LITTLE DETAILS. I -- I NOTICE THAT, I THINK OTHERS NOTICE IT, EVEN IF IT'S JUST SUBCONSCIOUS, SO INTEGRATING OUR COMMUNITY AND OUR CULTURE AND WHAT SAN ANTONIO IS IS REALLY IMPORTANT. AND THEN THE THINGS THAT YOU'VE BEEN DOING WHERE YOU HAVE THE -- WE HAD THE VETERANS MEMORIAL FOR STAFF SERGEANT DAYTON POLVADO, HE WAS A WORLD WAR II VET THAT WAS MIA AND HIS REMAINS CAME [00:50:01] IN AND WE HAD A BIG CEREMONY, THAT WAS AMAZING AND MOVING, AND DESERVING OF MORE ATTENTION. AND Y'ALL DO THINGS LIKE THAT ALL THE TIME. SO HOWEVER WE CAN BE HELPFUL IN BRINGING ATTENTION TO THOSE THINGS, NOT ALL AIRPORTS ARE DOING THAT. BUT WE ARE. AND I'M VERY PROUD OF THAT. TO COUNCILWOMAN MEZA GONZALEZ'S POINT, IT'S THE FIRST AND FINAL IMPRESSION FOR ALL OF OUR VISITORS. THE SINGLE BIGGEST ECONOMIC DRIVER FOR OUR COMMUNITY, WE CAN'T FORGET THAT, AND I CERTAINLY DON'T. AND I THINK, YOU KNOW, Y'ALL STAYING ON SCOPE, ON SCHEDULE, ON BUDGET IS EXCELLENT. I THINK Y'ALL ARE DOING A REALLY GREAT JOB AT EXECUTING SUCH A BIG, BIG DEAL FOR OUR CITY. AND I HOPE WE CAN CONTINUE TO MESSAGE THIS WELL AS A COUNCIL AND IN OUR COMMUNITY AND ASSIST IN ANY WAY POSSIBLE TO REALLY GET THE WORD OUT ABOUT WHAT WE'RE DOING AT OUR AIRPORT. I THINK IT'S FANTASTIC, JUST REALLY PROUD OF IT. AGAIN, JUST YOUR BIGGEST CHEERLEADER. SO, YEAH, CALL ON US ANY TIME, AND WE'RE HAPPY TO HAVE YOU COME OUT TO ANYTHING IN DISTRICT 9 TO HELP THEM UNDERSTAND ALL THE CHANGES GOING ON AT THE AIRPORT, TOO. AND I THINK THE STONE OAK PARK AND RIDE WOULD BE GREAT FOR USING -- FOR DRIVING TO THE AIRPORT. RIGHT? Y'ALL LIKE THAT? ANYWAY, THANKS, JESUS. Y'ALL ARE DOING A GREAT JOB. >> SAENZ: THANK YOU, MA'AM. >> MAYOR JONES: THANK YOU. COUNCILMEMBER GALVAN IN. >> GALVAN: THANK YOU, MAYOR. THANK YOU, JESUS, AND TO THE TEAM FOR ALL OF THE INVEDDABLE WORK Y'ALL DO WITH THE AIRPORT. I ALWAYS HAVE A LOT OF CONFIDENCE IN YOU ALL, CONTINUE TO SEE THAT IN THE PRESENTATIONS AND, OF COURSE, IN THE DELIVERY Y'ALL HAVE IN THE WORK THAT YOU DO. COUPLE QUICK QUESTIONS, I MEAN, I FEEL VERY COMFORTABLE WITH THE VAST MAJORITY OF THIS. THE ONE THING I WAS GOING TO ASK RELATED TO THE CONCESSIONS PORTION, LET'S TALK ABOUT LOCAL, RIGHT? OF COURSE THE BIG FOCUS FOR MYSELF AS WELL. ONE THING WITH THAT, I GUESS -- REMIND ME, FOR THE CONCESSIONS THEMSELVES, THE REVENUE WE COLLECTED AT THE AIRPORT FUND, I DON'T KNOW IF IT'S OPERATION OR CAPITAL THAT WE GET IT FOR, WHICHEVER ONE IT IS, IS IT THROUGH PRIMARILY THROUGH SALES OR GROUND LEASES FOR THE CONCESSIONS -- OR FOR THE VENDORS? SAWNSEANS AS IT RELATES TO THE REVENUE WE RECEIVE FOR THE CONCESSIONS, IT'S BASE ON THE PERCENTAGE OF THE REVENUES THAT COMES BACK TO THE AIRPORT AND GOES INTO OUR NONAERONAUTICAL REVENUES. >> GALVAN: GOOD TO KNOW. I WAS WONDERING... IF IT'S PRIMARILY THROUGH SALES, GOOD TO KNOW. AND THEN BEYOND THAT, I GUESS, WHAT'S THE PROCUREMENT OR APPLICATION PROCESS LIKE FOR BUSINESSES OR VENDORS TO HAVE THEIR CONCESSIONS THERE? >> SAENZ: FROM OUR PERSPECTIVE, WE'VE BEEN -- YOU KNOW, AS WE LOOK AT THE FIRST TWO PACKAGES THAT WERE ISSUED OUT, YOU KNOW, 24 MONTHS AGO, THE COMPLETION OF WHAT WE'RE DOING THERE, AND THEN THIS ISSUANCE, WE'VE BEEN -- WE TRY AND GET IT OUT AS MUCH AS WE CAN IN SOCIAL MEDIA IN THE WORK THAT WE'RE DOING. I THINK WE ALSO ASKED YOU ALL IF YOU HAD ANYBODY IN YOUR, YOU KNOW, DISTRICTS THAT YOU WANTED TO REACH OUT TO AND TELL THEM TO COME TO INDUSTRY DAY. WE DID THAT. WE ACTUALLY MOVED INDUSTRY DAY A COUPLE OF TIMES TO MAKE CERTAIN WE CAPTURED -- WE HAD TO MOVE IT THREE TIMES BECAUSE OF THE SIZE OF THE VENUE TO THE QUESTION EARLIER. WE WERE LOOKING AT 50 TO 60, AND THEN IT GOT TO 80 TO 90, AND THEN IT WAS OVER 100 THAT WANTED TO BE THERE, SO WE HAD TO MOVE THREE TIMES. SO WE'RE EXCITED ABOUT THE PEOPLE THAT ARE INVOLVED. WE TRY AND CONNECT THEM, IF THEY WANT TO TRY AND BID ON THIS ON THEIR OWN, THERE IS QUITE A BIT OF CAPITAL INVESTMENT THAT NEEDS TO BE MADE ON A SOLE RESPONDENT, OR IF YOU WANT TO GET CONNECTED WITH A NATIONAL CONCESSIONAIRE, WE PROVIDE THAT INFORMATION TO THEM AS WELL SO THEY CAN WORK -- AND WE'RE -- I GIVE A LOT OF CREDIT TO THE TEAM THAT'S BEHIND ME. THEY'RE GETTING AFTER IT TO MAKING CERTAIN WE'RE ASKING THE MAIL, TEXT, PHONES THAT ARE SAYING HOW DO I GET CONNECTED IN THIS PROCESS? BECAUSE ONCE WE GET INTO THE SOLICITATION PIECE, WE OR GOING TO HAVE TO BE QUIET. >> GALVAN: THAT'S GREAT. GLAD TO HEAR THAT. I THINK THE TECHNICAL ASSISTANCE IN SOME FORM IS REALLY HELPFUL FOR FOLKS WHO DON'T NORMALLY APPLY TO BE PART OF THE CONCESSION, OR BE A VENDOR WITH THE ENTIRE CITY IN ANY FORM, SO THAT IS REALLY HELPFUL TO SEE THAT'S WHAT Y'ALL DO. ONE OTHER QUESTION I HAD, KIND OF GOING BACK A LITTLE BIT TO THE REVENUE PORTION FOR THIS, HOW MUCH -- I GUESS, PROPORTIONATELY, HOW MUCH DO WE -- DOES THE AIRPORT RECEIVE FROM SALES CONCESSIONS COMPARED TO TICKETS OR FLIGHTS FOR THEIR -- THE OPERATIONAL FUND. >> SAENZ: YEAH, IT'S BROKEN DOWN INTO AERONAUTICAL AND NONAERONAUTICAL REVENUES. WE CAN PROVIDE THAT TO YOU. ALYSSA MAY HAVE THAT AND WE CAN GET IT IN A FEW MINUTES. [00:55:03] 35MILLION. >> GALVAN: AND THEN PERCENTAGE, WHAT IS THAT PROPORTIONATELY FOR THE ENTIRE BUDGET? >> SAENZ: THE BREAKDOWN? >> SPLIT OVERALL. WE GET 75 AND 35 COMING FROM NONAERONAUTICAL REVENUES. >> GALVAN: GOT IT. THANK YOU. I THINK THOSE ARE ALL MY MAJOR QUESTIONS. THANK YOU SO MUCH. AND I REALLY APPRECIATE THE PORTION ON THE STREET PRICING, OR CLOSING TO THAT AS WELL. TO MAKE IT AS AFFORDABLE AS POSSIBLE IS REALLY CRUCIAL THERE, BUT OF COURSE TO YOUR FACT, EXTERNAL FACTORS DO COME IN THERE SO THANK YOU FOR THAT. THANK YOU, MAYOR. >> MAYOR JONES: THANK YOU. COUNCILMEMBER KAUR? >> KAUR: THANK YOU, MAYOR. THANK YOU, JESUS, FOR THIS PRESENTATION. CAN YOU REMIND ME WHO GOT THE CMAR FOR TERMINAL C? >> SAENZ: TERMINAL C CONSTRUCTION MANAGER AT RISK WAS HENSEL PHELPS. >> KAUR: DID THEY APPLY FOR THIS AS WELL? >> SAENZ: THEY DID NOT. >> KAUR: AND WE WANTED A SEPARATE CONTRACTOR -- OR SEPARATE ENTITY, I GUESS, BECAUSE WE WANTED -- I'M JUST WONDERING, LIKE, WITH TWO DIFFERENT ENTITIES, WE'RE ALIGNING TO MAKE SURE -- I KNOW THEY'RE GOING TO BUILD BASED ON THE DRAWINGS, BUT DID IT WANT DIFFERENT TILES BEING PICKED AND THINGS LIKE THAT? >> SAENZ: YEAH, EACH SOLICITATION IS DIFFERENT. YOU'LL LOOK AT -- I TRIED TO MAKE THAT REFERENCE EARLIER. YOU LOOK AT TERMINAL C AND THE FOOTPRINT GOING INTO A BROWNFIELD, I'M GOING IN, I DON'T HAVE ANY ISSUES WITH WHAT WE CALL MEP, ME CAN TAL CAL, ELECTRICAL, PLUMBING, OR WHERE YOU'RE GOING TO DROP CONCRETE, HOW YOU'RE GOING TO DO THAT WORK, YOU CAN GET AFTER IT QUICKLY AND MAKE THOSE THINGS HAPPEN. AND THAT'S WHAT WE LOOKED AT. AS YOU LOOK AT THIS ONE, WE'RE GOING TO HAVE TO CLOSE DOWN GATES, MOVE AREAS, MOVE SECURITY CHECKPOINTS, WE'RE GOING TO REFURBISH ALL OF THE RESTROOMS, ALL OF THE HOLD ROOMS. IT'S TEDIOUS. IT'S GOING TO BE TOUGH AS WE GO THROUGH THIS PROCESS, SO THOSE ARE THE THINGS THAT WE'RE GOING TO BE LOOKING AT AND THE CONSTRUCTION MANAGER TO WORK CLOSELY BASED ON THE DESIGN CRITERIA WE GIVE THEM. >> KAUR: FOR THIS COMBINATION, HOW DID YOU GIVE THEM HISTORICAL, LIKE PREVIOUS EXPERIENCE POINTS? BECAUSE TECHNICALLY, THIS IS A NEW JOINT VENTURE, THEY DON'T, AS AN ENTITY, HAVE HISTORY. >> SAENZ: YEAH, I MEAN, THE BEST PLACE I CAN GIVE IT TO YOU IS ON THE TEAMS THAT WERE ASSEMBLES AND WHO SPECIFICALLY HAS DONE , YOU KNOW, RENOVATION, REHAB PROJECTS, INSIDE TERMINALS WHERE YOU'RE DOING A FULL RENOVATION PROJECT. AND I WILL JUST SHARE WITH YOU, IN SOME OF THE ONES THAT WERE NOT AWARDED, WE HAD SOME INDIVIDUALS THAT WERE GOING TO BE PMS THAT HAVE NEVER WORKED IN AVIATION. IT'S NOT GOING TO WORK. AND THOSE ARE THE THINGS THAT WE'RE BEING VERY SPECIFIC ABOUT SO THAT WE CAN DELIVER ON TIME, ON SCHEDULE AND ON BUDGET AND WORK. NOW, WE'RE ALL FOR TRYING TO HELP EVERYONE AS MUCH AS WE CAN, BUT AT THE SAME TOKEN, THE LEADERSHIP'S GOT TO BE READY AND KNOWLEDGEABLE ON HOW TO DELIVER AND EXECUTE ON THESE PROJECTS. >> KAUR: YEAH. THE ONLY THING I'VE SAID TO YOU PRIVATELY, BUT JUST TO MENTION PUBLICLY, I THINK IT'S SUPER IMPORTANT THAT WE GET AN A AND B CONNECTOR BEHIND SECURITY SO YOU CAN EXPERIENCE ALL OF THE F & B REGARDLESS OF WHICH AIRPORT YOU LAND AT OR WHICH TERMINAL YOU LAND AT, AND I KNOW YOU'RE ON THE SAME PAGE, SO I'M HOPING THAT MAKES IT INTO THE DESIGN, AND CONTINUE TO FOCUS ON SECURITY. I HAD NO IDEA THAT THE FIRST -- THE SHORTEST, ACCORDING TO THAT STUDY WAS BWI. I'VE BEEN THROUGH BWI. WHICH WERE SO MUCH FASTER, BUT WE'VE GOT TO REMAIN FASTER. I GO BACK TO ERIK'S IDEA OF A SIGN IN SAN MARCOS, 40 40 MINUTES TO YOUR GATE AT SAT. >> SAENZ: THE THIRD TIME I'VE HEARD THAT IN TWO DAYS. >> KAUR: I'M TELLING YOU, PEOPLE WOULD COME HERE VERSUS AUSTIN. I'VE GOTTEN STUCK, RIGHT? AND THE PRESOLICITATION, THIS IS MY FUN STUFF, REMIND ME, WHERE DID 46% COME FROM? >> SAENZ: AS WE LOOKED AT THE SQUARE FOOTAGE THAT WE HAVE AVAILABLE. >> KAUR: TOTAL SQUARE FOOTAGE, OKAY. >> SAENZ: AND HOW CAN WE DISTRIBUTE THAT, IT'S THE NUMBER THAT WE GOT TO. WE KNOW THAT IN THE PREVIOUS ONE, YOU ALL SAID ABOUT 40. WE HAD A VERY LARGE PERCENTAGE IN THE PREVIOUS ONE, SO WE THINK THEY'RE GOING TO OUTPERFORM THAT JUST BECAUSE OF THE NUMBER OF PEOPLE THAT ARE INTERESTED IN BEING PARTICIPATORY. WE'LL FIGURE OUT THAT BALANCE AS WE GO THROUGH THE PROCESS. >> KAUR: THAT'S WHAT I WAS THINKING WHEN COUNCILWOMAN ALDARETE GAVITO MENTIONED THAT POINT, WE HAD SET THAT BAR IN PRESOLICITATION LAST TIME AND OUR VENDORS KNOW THAT'S WHAT WE CARE ABOUT SO THEY BROUGHT US MAJORITY, LOCAL CONCEPTS. I CAME BACK FROM A CONCERT TODAY AND I SAW FELIZ MODERN OPEN AND BEAUTIFUL. AND THE BAR THAT CHEF JOHNNY HAD WAS PACKED SO IT SEEMS LIKE TERMINAL B IS DOING GREAT AND GETTING UP AND READY. SO JUST BECAUSE SPOM OF THE FOLKS ARE HERE, THE THINGS THAT I WANTED TO COMMENT ON IS WE HAVE A GREAT BOOKSTORE IN DISTRICT ONE WITH TWIG, SO I KNOW LOCAL BOOKSTORE WAS ON THERE. WHEN YOU LOOK AT OTHER AIRPORTS, I FEEL LIKE THE ONE PLACE THAT WE REALLY STRUGGLE FOR LOCAL FOOD CONCEPTS IS WITHIN THE [01:00:01] ASIAN FOOD REALM. YOU ALWAYS SEE ASIAN FOOD BEING THE FOOD CHANGES, SO IF CHEF SU KIM HAS TWO AMAZING RESTAURANTS WITH GOLDEN GOOSE BEING RIGHT HERE, SO IF WE CAN BRING A LOCAL ASIAN CONZE CONCEPT, I THINK THAT WOULD BE GREAT. MY STAFF WANTED ME TO SAY TA KEYQUITO WEST AVENUE AND CADO BOBS. I THINK OUR F & B FOLKS KNOW WE WANT TO HAVE MORE LOCAL RESTAURANT TOURS AND CHEFS BE A PART OF THAT. THE PLACE THAT I FEEL LIKE WE COULD DO A LITTLE BIT MORE IS WITH OUR RETAIL. THAT'S A HUGE PACKAGE, IT'S A MASSIVE ONE. SO DID I CATCH THAT YOU'RE SAYING THAT THE DUTY FREE IS GOING TO BE ON ITS OWN, OR IS IT GOING TO BE INCLUDED IN THAT PACKAGE? >> SAENZ: DUTY FREE WILL BE ITS OWN PACKAGE. >> KAUR: AND DUTY FREE IS DUTY FREE, BUT FOR THE REST OF THEM, IF THERE'S A WAY WHOEVER'S BIDDING ON THAT TO MAKE SURE WE WANT MORE LOCAL CONCEPT FOR RETAIL AS WELL. I THINK IT'S SUPER COOL TO SEE FELIZ MODERN AND ALL WHAT WE THINK OUR CRAFTS ARE THAT WE WANT TO BE ABLE TO SELL AND SHARE VERSUS LIKE, GENERIC LUGGAGE STORE. I DON'T KNOW THAT WE HAVE A LOCAL LUGGAGE BRAND THAT WOULD BE BIG ENOUGH TO BE ABLE TO GO INTO THE AIRPORT. THAT'S THE ONE CHALLENGE I REMEMBERED FROM THE LAST CONVERSATION IS THAT YOU HAVE TO HAVE THE CAPACITY AS A CHEF OR AS A RETAILER TO BE ABLE TO SUPPLY TO THE AIRPORT, WHICH IS SOMETIMES TRICKY FOR OUR SMALLER BUSINESSES. BUT AS MUCH AS WE CAN PROMOTE THAT AND IF WE ALL SAY THAT LOUDLY HERE, I KNOW THE FOLKS RESPONDING TO THE RFPS WILL COME BACK AND MEET OUR EXPECTATIONS. THE ONLY LAST REQUEST I HAD WAS LAST TIME I FEEL LIKE THERE WAS A FOOD TASTING. AND I KNOW JEFF GOT TO ATTEND THIS FOOD TASTING. I WOULD LIKE TO VOLUNTEER AS TRIBUTE TO BE ABLE TO ATTEND THE FOOD TASTING AS WELL. THANKS -- >> MAYOR JONES: GREAT. THANK YOU. COUNCILMEMBER VIAGRAN? >> VIAGRAN: I WANT TO THANK THE AVIATION TEAM FOR ALL THEIR HARD WORK AND THEIR VISION FOR THE AIRPORT, AS WELL AS THE INVESTMENT MADE AT STINSON AIRPORT, BECAUSE WE DO HAVE TWO AIRPORTS HERE IN SAN ANTONIO. I NEED TO REMIND EVERYBODY OF THAT. I WANT TO -- I WANT US TO CONTINUE TO THINK THAT SAN ANTONIO INTERNATIONAL AIRPORT IS THE AIRPORT FOR -- WE WANT IT TO BE THE AIRPORT FOR THE SOUTH TEXAS REGION AND WE SHOULD CONTINUE TO BE THE TOP CONNECTOR BETWEEN THE NORTH AND THE SOUTH AND AS COUNCILWOMAN KAUR MENTIONED, WE SHOULD BE THE PLACE THAT THEY GO INSTEAD OF HEADING UP 35 TO ANOTHER CITY. SO LET'S JUST STICK WITH THAT. I DID WANT TO COMMENT, BECAUSE I FELT LIKE THERE WAS SOME CONFUSION AROUND THE OTHER CONTRACT AND I KNOW SOME OF THE COUNCILMEMBERS WEREN'T HERE, WE SELF-IMPOSED THAT, THINKING WE WERE GOING TO GET THE TOP CONCESSIONAIRES TO COME AND ASK FOR A WHOLE LOT MORE LOCAL. SOME OF THEM DID NOT. AND THAT IS WHY WE HAD ONE TOP CONCESSIONAIRE, GLOBAL CONCESSION GROUP THAT WENT OUT AND REALLY DID TAKE OUR TOP NOTCH FOOD AND BEVERAGE PEOPLE AND MADE THEM PART OF IT. SO I THINK WE NEED TO REMEMBER THAT, THAT THIS WAS NOT -- THIS WAS SOMETHING THAT WE HAD -- WE KNEW -- OR YOU KNEW, JESUS, BECAUSE OF YOUR EXPERIENCE, YOU KNEW THAT GLOBAL CONCESSION GROUPS WERE GOING TO COME, AND WE WANTED TO STRESS THAT. AND THERE WERE SOME THAT JUST DID NOT LOOK LOCAL AND WANTED TO BRING NOTHING BUT THE CHAINS. SO I THINK THAT MESSAGE WAS COMMUNICATED CLEARLY IN THE LAST ROUND, SO I'M HOPING THAT THE GLOBAL CONCESSIONS THAT WILL COME TO SAN ANTONIO, BECAUSE THEY CAME THE LAST TIME, UNDERSTAND THAT THEY NEED TO GO OUT TO OUR LOCAL BUSINESSES AND COMMUNITIES AND TRY AND GET THEM ON BOARD BECAUSE AS YOU MENTIONED BEFORE, MOVING INTO -- THE COST TO MOVE INTO AN AIRPORT, THE ABILITY TO STAFF THAT AIRPORT IS VERY -- IS VERY EXPENSIVE. IT'S VERY EXPENSIVE. AND I DO WANT TO APPLAUD CHEF JOHNNY HERNANDEZ FOR WHAT HE'S DONE, BECAUSE I KNOW HE FILLED IN WHEN SOME OF THOSE CONCESSIONS IN TERMINAL A HAD TO CLOSE DOWN, AND WE NEEDED A SPACE TO FILL. SO I WANT TO MAKE SURE THAT AS WE MOVE FORWARD, WE COMMUNICATE THOSE, ESPECIALLY THOSE WHO WANT TO COME JUST CINGULAR THAT, YOU KNOW, WE NEED THOSE -- WE CAN'T HAVE YOU CLOSE DOWN VERY OFTEN. WE NEED YOU OPERATIONAL, ESPECIALLY DURING THE SUMMER SEASON, WHICH IS HOPEFULLY GOING TO BE A BUSY SEASON. SO, YOU KNOW, I THINK LAST TIME -- I KNOW HUDSON GROUP AND -- IS IT DUFRY HAVE MERGED, SO THEY'RE A DIFFERENT GROUP [01:05:04] OR A MERGED GROUP. >> SAENZ: I'M SORRY. >> VIAGRAN: AS A GLOBAL CONCESSIONAIRE. >> SAENZ: HUDSON AND HOST HAVE JOINT PARTNER. >> VIAGRAN: IT'S GOING TO BE VERY INTERESTING THIS TIME AROUND. SO I LOOK FORWARD TO THAT AS WE MOVE FORWARD AND WE TAKE INTO CONSIDERATION -- I THINK THE COMMITTEE'S GOING TO HAVE A LOT OF WORK TO DO. MY CONCERN IS THE FOOT TRAFFIC, MAKING SURE WE DO HAVE THAT CONNECTION FOR A & B, JUST TO MAKE SURE THAT ALL THE CONCESSIONS IN THERE DO GET THAT -- GET THAT PATRONAGE. AND, AGAIN, AS I TALKED BEFORE, GETTING THAT LAST DOLLAR OR $5 AND HAVING THE DIFFERENT PRICE POINTS, WE ARE WORKING AT EWDC ON A SAN ANTONIO STORE AND LOOKING WHAT -- WHERE WE CAN PROVIDE SOME OF OUR MERCHANDISE THERE. IF NOT, YOU KNOW, HAVING THEM ORDER SO THAT THEY CAN TAKE SOMETHING THAT REALLY DOES CREATE THAT SENSE OF PLACE, THAT THEY'RE THERE IN SAN ANTONIO. AND I THINK THAT WOULD HELP WITH OUR SALES TAX I WANT TO MAKE SURE WE SEE THAT HAPPEN. SO, I THINK -- I'M VERY PROUD OF THE WORK THAT WE'VE DONE SO FAR. I THINK, YOU KNOW, IN -- I WANT TO STICK WITH CONCESSIONS BECAUSE I CAN GO ON AND ON ABOUT CONNECTIONS, BUT WE'RE TALKING ABOUT CONCESSIONS. I THINK NOW WHAT WE NEED TO DO IS MAKE SURE AS, THE FORESEEABLE FUTURE, WHAT WE'RE LOOKING AT IN TERMS OF POSSIBLE DELAYS, POSSIBLE CANCELLATIONS. YOU KNOW, SPENDING A LITTLE MORE TIME, GETTING THERE A LITTLE EARLIER THAN ANTICIPATED BECAUSE OF POSSIBLE DELAYS IN TSA LINES. THAT WE MAKE SURE WE HAVE THE CONCESSION OPTIONS FOR OUR TRAVELERS GOING THROUGH. WHICH INCLUDES THAT ADVENTURE SINGLE TRAVELER OR BUSINESS TRAVELER AND THE FAMILY. JUST MAKING SURE THAT WE KIND OF KEEP AN EYE ON THAT AS WE MOVE FORWARD. I KNOW MOST RECENTLY WHEN I WENT UP TO D.C., I WAS THERE FOR A LOT LONGER THAN I ANTICIPATED BECAUSE I WANTED TO MAKE SURE I DIDN'T MISS MY FLIGHT. THAT MEANS I HAD LUNCH AND THEN I HAD A COFFEE. AND THEN I SHOPPED. SO MAKING SURE WE HAVE THOSE OPTIONS FOR OUR VISITORS AND THE TRAVELERS. THANK YOU. THAT'S PRETTY MUCH ALL I HAVE. I DO WANT TO -- IF YOU COULD JUST PROVIDE, FOR THE REST OF THE COUNCIL, THAT MEETING, JEFF. THE MEETINGS THAT WE HAD REGARDING WHEN WE SELF-IMPOSED AND HOW POORLY THE POOR WAS FOR THE F&B CONCESSIONS -- WAS IT TWO YEARS AGO? OKAY. YEAH. LET'S JUST GET THOSE MEETING DATES OUT THERE TO MAKE SURE PEOPLE UNDERSTAND WHAT OUR REFERENCE POINT IS WHEN WE'RE TALKING ABOUT THAT. THANK YOU. >> SAENZ: COUNCILWOMAN, IF I COULD JUST MAKE ONE COMMENT. I HAVEN'T READ THE NUMBER, BUT I DO KNOW THAT WITH OUR PARTNERSHIP WITH TXDOT AND FAA, WE WERE ALSO JUST RECENTLY AWARDED A GRANT FOR STINSON. SO WE REMAIN COMMITTED AND FOCUSED ON STINSON AS WELL AND EVERYTHING WE'RE DOING ON THE SOUTH SIDE TO CONTINUE TO GROW IN OUR PARTNERSHIPS WE HAVE IN THE SOUTH. >> VIAGRAN: THANK YOU. WITH THE FOUR MINUTES I HAVE LEFT, I AM GOING TO INVITE YOU ALL TO GO DOWN TO STINSON. IT'S AN AMAZING VENUE. JUST WE HAVE THE OLD YELLER THERE . IF Y'ALL NEED A RIDE UP IN AN OLD PLANE, WE CAN GET THAT FOR YOUR TEAM. IT IS A GREAT AIRPORT AND EVERY TIME I LOOK, I'M LIKE DO YOU HAVE THIS SPACE AVAILABLE? WE'RE RUNNING OUT OF SPACE FOR THE AMOUNT OF VENDORS WE HAVE. THANK YOU. THAT'S GREAT. I'M SO EXCITED TO HEAR THAT. THANK YOU, MAYOR. >> MAYOR JONES: THANK YOU. COUNCILMEMBER MUNGIA. >> MUNGIA: THANK YOU, MAYOR. LOCAL, LOCAL, LOCAL. IF YOU HEARD IT ONCE, YOU HEARD IT A THOUSAND TIMES UP HERE. I JUST WANT TO REITERATE THAT. COULD YOU EXPLAIN A LITTLE BIT MORE THE DIFFERENCE -- WHAT THE DIFFERENCE IS BETWEEN DUTY FREE AND DUTY PAID IS? I'M NOT QUITE AN AIRPORT NERD LIKE COUNCILWOMAN KAUR IS. IF YOU COULD EXPLAIN THAT TO ME. >> SAENZ: AS IT RELATES TO DUTY FREE AND DUTY PAID, WE HAVE A SUBJECT MATTER EXPERT. I'M GOING TO ASK ANNE TO TALK ABOUT THAT. ANNE HAS OVER 25 YEARS OF EXPERIENCE IN THE WORK THAT WE'VE PUT TOGETHER. I'LL ASK HER TO COME UP HERE AND SPEAK ABOUT THAT. >> GOOD AFTERNOON. HAPPY TO ANSWER THAT QUESTION. SO DUTY -- ANYBODY CAN SHOP AT THE DUTY FREE/DUTY PAID STORE. THE ONLY THINGS THAT ARE ACTUALLY DUTY PAID ARE THE ALCOHOL AND TOBACCO. THOSE ARE THE THINGS THAT ONLY THE INTERNATIONAL [01:10:05] OUTBOUND PASSENGERS CAN BUY. BUT ANY OF YOUR OTHER PASSENGERS CAN BUY THE FRAGRANCES, THE COSMETICS, THE CONFECTIONARY. THE DUTY FREE ACTS AS A LITTLE DEPARTMENT STORE BECAUSE IT HAS DIFFERENT PRODUCTS IN IT AND MOST OF YOUR PASSENGERS WILL BE ABLE TO SHOP THERE. >> MUNGIA: BECAUSE THEY PAID A TAX? >> YES. >> MUNGIA: OKAY. >> LOTS OF TIMES THE OPERATOR ACTUALLY ABSORBS THAT. >> MUNGIA: OKAY. I WASN'T AWARE. SO PEOPLE ARE ABLE TO BUY TOBACCO PRODUCTS AT THE AIRPORT? >> I'M SORRY? >> MUNGIA: ARE PEOPLE ABLE TO BUY TOBACCO PRODUCTS AT THE AIRPORT? >> YES. IF THEY ARE OUTBOUND INTERNATIONAL TRAVELERS. ALCOHOL AND TOBACCO. >> MUNGIA: AND ARE YOU ABLE TO ACCESS THOSE STORES, GENERALLY, AND THEN YOU'RE TOLD YOU CAN ONLY BUY SOMETHING IF YOU'RE OUTGOING INTERNATIONALLY? OR IS THE ACCESS TO THAT STORE -- YOU HAVE TO SHOW THAT YOU'RE TRAVELING INTERNATIONALLY? >> NO. ANYONE CAN GO IN AND BUY, EXCEPT FOR ALCOHOL AND TOBACCO. IN THAT CASE, YOU WOULD HAVE TO SHOW THAT YOU ARE TRAVELING INTERNATIONALLY. >> MUNGIA: OKAY. GREAT. OKAY. SO THAT RFP IS GOING TO INCLUDE BOTH TYPES? >> IT WILL BE ONE OPERATION, ONE CONCESSIONAIRE, BUT IT WILL INCLUDE BOTH ASPECTS OF THE SALES. >> MUNGIA: GREAT. THANK YOU FOR THE EXPLANATION. APPRECIATE IT. THE ONLY OTHER QUESTION I HAD WAS -- AND MAYBE YOU HIGHLIGHTED THIS A LITTLE EARLIER. ARE THERE ANY MAJOR DIFFERENCES TO THE TERMINAL C CONCESSION RFP FROM THE LAST ONE? >> SAENZ: I THINK THE MIXTURE IS STILL FOOD AND BEVERAGE AND RETAIL. THE ONLY THING WE DO HAVE DIFFERENT IS THE ADDITION OF A DUTY-FREE CONCESSIONAIRE. PREDOMINANTLY, OVERALL WE'VE TRIED TO LOOK AT THE OVERALL SQUARE FOOTAGE AND SPECIFIC PARCELS IS WHAT WE'VE BEEN WORKING ON WITH ANNE AND THE DESIGN TEAM TO MAKE CERTAIN, AS WE LOOK AT THE TRAVELING SEQUENCE OF ALL OF OUR PASSENGERS, HOW WE CAN CAPTURE THEM TO BE ABLE TO ENJOY ALL OF THE DIFFERENT ESTABLISHMENTS THAT WE'RE GOING TO HAVE IN THIS NEW SOLICITATION. >> WALSH: COUNCILMAN, JUST GENERALLY, THE REVENUE PER SQUARE FOOT WE'RE EXPECTING IS MORE. THE LOCAL PERCENTAGE IS MORE. WE'VE UPPED THOSE ASPECTS OF THIS SOLICITATION. >> MUNGIA: GREAT. THAT'S WHAT I WAS ASKING. THE SPECIFIC BREAKDOWN ON THE POINTS TOO. I GUESS THAT'S MORE OR LESS THE SAME. AWESOME. GREAT JOB. LOOKING FORWARD TO IT. THANK YOU. >> MAYOR JONES: THANK YOU. ANY OTHER COMMENTS OR QUESTIONS ON THIS? OKAY. JESUS, I HAD JUST A COUPLE OTHER ONES. WHEN YOU GO TO OTHER AIRPORTS, IT MAKES YOU THINK ABOUT THINGS YOU WOULD LIKE TO SEE AT YOUR OWN. ONE OF THE THINGS I'M ALWAYS STRUCK BY AT OTHER AIRPORTS IS THEIR INCORPORATION OF ART. LIKE HIGHLIGHTING OUR SAN ANTONIO MUSEUM OF ART, ET CETERA, ET CETERA. REALLY MAKING SURE THAT WE'RE BEING AS THOUGHTFUL ABOUT A PERCENTAGE OF OUR ADVERTISEMENTS. EVERY TIME I SEE THE BEER PRODUCER WELCOMING ME BACK, I WISH IT WAS SOMETHING ELSE. BECAUSE THAT MEANS SOMEBODY ELSE IS ALSO SEEING THAT FOR THE FIRST TIME WHEN THEY COME INTO OUR COMMUNITY. A LITTLE BIT -- HOW WE CAN BE THOUGHTFUL ABOUT INCORPORATING SOME OF THE LOCAL GEMS THAT WE HAVE WOULD BE GREAT. I SEE IT'S ALSO IN TERMINAL A AND B ALREADY -- MAYBE THIS IS SOMETHING Y'ALL HAVE ADDRESS. THE LACTATION PODS. DO THEY HAVE TO BID AGAIN OR DO THEY HAVE A SPACE DEDICATED FOR AN ADDITIONAL POD? >> SAENZ: I'M GOING TO ASK TIM TO COME TALK ABOUT THAT AS HE HAS BEEN VERY INVOLVED WITH ALL THE DESIGN WORK WE'VE BEEN DOING IN TERMINAL C. >> GOOD AFTERNOON. INSTEAD OF HAVING SOME OF THOSE PODS, WE'LL HAVE DEDICATED ROOMS FOR THAT. WE DESIGNED THAT IN. WE SPENT A LOT OF TIME WORKING WITH ACCESSIBILITY, IS ONE OF THE KEY FOCUSES. WE'LL HAVE DESIGNATED ROOMS FOR THAT, ALONG WITH OTHER AMENITIES ADDRESSING ACCESSIBILITY. YOU'RE GOING TO SEE THINGS THAT WE'RE PROBABLY THE FIRST AIRPORT TO DESIGN IN. FOR EXAMPLE, OUR ACCESSIBILITY WORKING COMMITTEE, WE HAD OVER 166 SUGGESTIONS THAT CAME IN. AND WE'RE INPUTTING A LOT OF THOSE. THOSE WERE BROUGHT IN EARLY IN THE DESIGN. BUT SPECIFIC TO THAT ONE THERE WILL BE DEDICATED ROOMS SO WE DON'T NEED A POD OUTSIDE. WHEN WE DO THE RENOVATIONS OF TERMINAL A AND B, WE'LL LOOK TO DO THE SAME DESIGN STANDARDS AND THE SAME DESIGN. >> MAYOR JONES: BUT THAT ACCESS WILL BE ACROSS THE THREE TERMINALS, RIGHT? YOU'RE NOT CONSOLIDATING IT INTO ONE? >> ABSOLUTELY. YOU'LL PROBABLY SEE MORE. [01:15:03] >> MAYOR JONES: SOUNDS GOOD. APPRECIATE THAT. JESUS, ARE WE STILL THE ONLY MEDIUM-SIZED, MEDIUM HUB IN THE TOP TEN? >> SAENZ: ARE WE THE ONLY -- >> MAYOR JONES: WE'RE THE MEDIUM-SIZED HUB? >> SAENZ: YES. DALLAS, FORT WORTH, GEORGE BUSH INTERCONTINENTAL ARE ALL LARGE. HOBBY IS A MEDIUM HUB AND SO IS SAN ANTONIO, SO WE'RE THE THREE . >> MAYOR JONES: HOW DOES THAT INFORM OUR APPROACH ABOUT IDENTIFYING THIS OPPORTUNITY FOR FOLKS? IS IT -- HAVE YOU FOUND -- ARE THERE DIFFERENT TYPES OF APPLICANTS OR DIFFERENT LEVELS OF INTEREST FROM DIFFERENT GROUPS BASED ON IT BEING A MEDIUM-SIZED HUB? >> SAENZ: YEAH. I THINK THERE IS, AS IT RELATES TO THE AMOUNT OF FOOTPRINT -- YOU'RE SPEAKING SPECIFICALLY, COUNCILWOMAN, TO THE CONCESSION SOLICITATION? I'M SORRY. MAYOR. WE'RE TALKING SPECIFICALLY TO THE SOLICITATION OF THE CONCESSIONS? >> MAYOR JONES: YES. >> SAENZ: DIFFERENT FOOTPRINTS ARE RELEASED DIFFERENTLY. SO FROM WHAT WE DO AND HOW WE HANDLE THAT IS WE TRY AND GET THE COMMUNICATION AS MUCH AS POSSIBLE. BECAUSE, YES. THE LARGE CONCESSIONAIRES, THEY'RE FOCUSED ON THE BIG AIRPORTS BECAUSE THAT'S WHERE THE BIG MONEY IS AT. WE'VE GOT TO MAKE CERTAIN THAT WE CRAWL IN THERE AND MAKE CERTAIN THAT THEY'RE INTERESTED IN OURS AS WELL. >> MAYOR JONES: GOT IT. APPRECIATE THAT. THANKS FOR THE CLARIFICATION. YOU HAVE HEARD LOTS OF SUPPORT FOR YOUR EFFORTS AND REALLY LOOK FORWARD TO WHAT TERMINAL C COULD BE, NOT ONLY FOR THAT ONE TERMINAL BUT WHAT IT REPRESENTS FOR OUR ENTIRE CITY. DO APPRECIATE THE HISTORICAL DOCUMENTS, JEFF, AND MAKING SURE THAT WE'RE LEARNING FROM ALL THOSE LESSONS LEARNED. WE DON'T, IN MY BRIEF, AS YOU MENTIONED SOME VENDOR FROM CHICAGO WARMING UP FOOD IN OUR AIRPORT IS NOT WHAT WE WANT. SO HOW DO WE ACCOUNT FOR THAT IN OUR CONTRACTS AND ENFORCE THOSE. THANKS, JESUS. THE TIME IS NOW 3:21 AND THIS MEETING IS ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.