I do want to welcome my colleagues and staff and guests in attendance.

Councilmember Castillo is here, Councilmember Alcorn is here, Councilmember Ramirez is here.

We also have staff from Vice Mayor Pro Tim Peck's office from Councilmember Cayman's office, from Councilmember Martinez's office, and also Councilmember Flickinger's office.

Thank you all for being here.

This meeting is open to the public and is being held in person and virtually.

We're also broadcasting live on Houston HTV.

Council members and staff, if you'll just hold your questions if you're online and you want to put those questions in the chat pod, you can do that.

We do have one member of the public who is signed up to speak today.

If you are here and you'd like to sign up to speak, there is a sign-up sheet at the front table to your right.

Public speakers will have a chance to speak at the conclusion of our presentation.

Any questions that may not be answered today can definitely be emailed to our office at District K at Houston TX.gov and we can forward those responses back from the respective departments.

Also want to uh welcome staff from Councilmember Jackson's office to the meeting today.

Thank you for being here.

We do have two presentations today.

Our first presentation will be from our Houston Airport System Director, Jim Cesniak, and he will be presenting on the Houston Airport system, giving us some um great updates.

We're very hopeful that the weather won't cause any problems for us uh this weekend.

So uh director Cesniak, thank you for being here.

If you are ready, we are ready to hear from you.

Councilmember Thomas's staff is online.

Also want to recommend recognize staff from Councilmember Thomas's office who has joined us online.

Hello, Director.

How are you doing?

It's great to be here today.

Um, you know, it's been a while since I've been here, so I figured it'd be a good time to come in and do a presentation, let you know what's going on at the airport, what we're doing, um, and then also uh we've got a couple of items that are gonna be coming before you in the near future, and so we want to kind of give you an update on what that entails so you can ask questions because they're they're uh big dollar amounts.

So uh next slide, please.

Um and then you know, just generally what we've been doing at the airport um from a passenger um experience side of the house so we can see what's going on.

Next slide, please.

Um next slide.

So uh again, good growth this year, particularly uh international.

Um so we just got our numbers in and completed for the calendar year of 2025.

Um international growth was up, um, which was very positive considering we just opened the new international terminal.

Um and then also our air cargo numbers were up and very strong, so we're very excited about that because again it's a little little known part of the the the airport, but it's about 13 billion dollars in annual economic impact to the to the region for the cargo operation that happens at the airport.

On the domestic side, we were down a little bit.

Um that had to do uh with a couple of factors.

So uh number one, uh about this time last year we were closed for a day because of the snowstorm.

Um so that has an impact on our numbers.

And then we've seen some fluctuations in the domestic market.

We've got some airlines that are up and some airlines that are down.

Um so again, you know, United and Frontier at the airports have been up pretty good, and then uh Spirit Airlines with their bankruptcy challenges has been down at the airport.

Um, and then Southwest, you know, system-wide has been doing some reorganization of their system, and so they were down a little bit.

But that was a universal thing across their network, they've been down, and then they've got a challenge with their aircraft right now.

They're uh waiting for Boeing to get their uh 737 7 maxes certified.

So we're hearing that that that will hopefully happen sometime this year and allow Southwest to continue to grow um as they continue to get airplanes uh and into their fleet again.

Next slide, please.

Um again, just talking about that international growth.

Um, you know, again, we saw a lot.

Uh you'll see the boat it bolded uh destinations.

Those are a lot of new destinations or additional competition on routes, so we're always you know trying to make sure that we grow the pie um number one, but then also having a competitive market here.

Um so we're very proud of some of these new destinations that we had.

Um and then we're gonna continue to add you know domestic destinations too.

I was just informed today about another international um two more international flights that we're gonna get, but I can't announce them yet, so you'll you'll have to follow our Twitter.

It'll be it'll be on there in a couple days once it's uh public with the airline.

Next slide, please.

Uh again, talking about that cargo and how important it is to the region.

Um you saw that we're again record setting over here, saw a lot of new growth with uh again the semiconductors, particularly that are coming in uh to the market because of again what's happening here in Houston, but also you know, we find feed things that are happening in the Austin region, um, and then also feeding things that are happening in the San Antonio region.

So a lot of good stuff going on in there, and then we've got obviously the significant operations by FedEx, UPS, and Prime Air, which is the Amazon Air wing.

So all the the things you order on Amazon, and a lot of it flies in and out of the airport too.

So uh being seeing strong numbers there, and again, um just recently announced that we got a second frequency from Silkway Airways, they're going direct uh from here to uh Baku, Azerbaijan.

Um so uh it's one of those unique locations that not people ought to think about, but uh that's uh you know primarily the oil business.

So we send a lot of the stuff that's produced here in Houston from an oil perspective over on that airplane uh to get into the markets over there where they're doing a lot of oil production.

So again, tying into the making sure that the airport is uh servicing the um uh the economy of the of the the Houston region.

Next slide, please.

So some terminal improvements I want to talk about.

Next slide.

Uh international terminal.

So you know, again, redevelopment wise, we're we're progressing, you know, we're pretty much done with the building itself.

Um so this is just some some shots of what's going on in the building right now.

So you'll see that the ticket ticket lobby is basically um complete.

Um you've got the oculus there in the middle.

Um, you've got United's Terminal B there on the upper.

Uh we've got the security checkpoint, 17-lane security checkpoint there on the right, and then on the center um center bottom, you'll see also that we've got the new Metro 500 service has now been moved from Terminal C over to the international terminal to pick up over there.

Um again trying to make sure that we've got good service there, particularly for our international travelers that you know they tend to take public transit to the airport a lot more than Americans do.

And so by moving this over to the international terminal, it kind of eases that so we don't have to send them all through the airport.

They can just walk right out on the door and and jump on that that metro bus.

Next slide, please.

Uh again, this is a picture of the lower hall.

So again, we've got the the information booth that's there now, and our staff in our orange polo is to be able to help a lot of the international travelers that come into the uh facility, answer any of their questions, and then you can kind of see that Oculus there.

Um so that's again where your meters and greeters happen, and that's where people, when they walk out of customs, um, that's where their first kind of impression of Houston is in there.

So quite an impressive piece, and then we're putting some concessions in there uh to be able to keep people there because again when you're international visitor, we get a lot of friends and family that'll show up to greet them there.

So we want to make sure that we've got some amenities for them.

Next slide, please.

Um we've also really focused on cleaning up the airport this year.

So last you know, if you remember this time last year, we focused on getting components of that infrastructure open prior to the holidays so that we can you know relieve the traffic congestion that we had at the airport.

Uh this year we were focusing on cleaning up the thing before the holidays.

Um so a lot of the barrels are gone, those uh the little candlesticks that are all over the roadway.

Um so now when you enter the airport, it looks more like an airport and not a construction site.

Um next slide, please.

Uh and then we're talking about you know, when are we gonna open the building for the international carriers?

Well, right now we're looking at we're gonna do that in late February.

And so we're gonna do it in a staged um manner.

We're not gonna do all airlines on one day, so we'll move a couple per day so that we can ease ourselves into that facility.

Um but that is basically uh contingent on our our baggage system.

That's the last piece that we're working on right now.

Uh if we go to the next slide, you'll kind of see the baggage system.

So that's it.

So it's it's all it's an entire building that's built for a baggage system.

Um and so with that baggage system, you got all kinds of belts and drives, and they all got to be working in harmony.

So the good thing is is that our vendor um installed the facility uh install the machinery, they have tested it, it works.

We have a third party that's going in and doing testing right now of the system, so again, that's going well.

And then again, early February, we'll have the TSA that goes in for the final inspection of that that machinery, and then once we clear the TSA test, then we'll be live ready to go, um, and then we can start operating the facility uh with the international carriers over in there.

So that's the kind of last piece of infrastructure that we need to complete for that terminal.

Next slide, please.

Terminal B, good progress on terminal B.

So if you look at uh May 2024, um so again, this is a terminal that's probably gonna be you know a little over two years to construct it over there.

Uh you look at December of 2022, um, you see the two piers that have been built out there.

So if you remember those used to be those round circular banjo gates that we used to have out there that uh had their own unique smell um that were original from the airport in 1969.

Um those again have been removed, and then these two new beautiful concourses have been built in in its place.

Uh and then on the top of the slide, you'll see the the terminal.

So if you look at the square box there, that is the terminal B originally on the left, you'll see uh on the right that we've extended that terminal uh and put in a lot more.

So basically we're doubling the ticket hall there.

Next slide, please.

Um this is just some photos of the the site and what it's gonna look like.

So um that the the left photo is a central, you know, but just a picture inside the ticketing hall.

So that's kind of the ground floor where you're gonna walk in there, and uh the above you uh is the ceiling, and that ceiling above that is the TSA checkpoint where it will be.

Um and then you'll see on the photo on the right, it's again a complete glass curtain wall around that area, so it'll be nice and bright and airy in there.

And if you look on the top right of that photo, you'll kind of see the installation of the basically the the um curb cover that's gonna go around the terminal to allow all that traffic to be um processed on that building and then keep everybody out of the weather.

Next slide, please.

This is a shot.

Um, this is from the United's uh that's gonna be again their world's largest uh united club.

Um so this is from that mezzanine level.

Uh so it's a you know 50,000 square foot lounge that's going to be there.

Uh it's got a great view overlooking the airfield, and so uh again, very excited, and again, a lot of floor to ceiling windows in there to bring in a lot of natural light.

Uh and then the photo on the right is again just a picture of the concourse itself from the interior.

Uh, again, a lot of floor to ceiling windows, uh make sure it's nice and bright and airy.

Next slide, please.

Um at hobby, uh, we're continuing to make progress on what we're doing over here.

Um so you'll see that the canopy uh connecting the garage to the terminal is is in progress and and constructed, and we're in the process of basically just framing it out now.

Um you'll see it's this is a little bit of a dated project uh or little date of a photo right now.

Uh but if you were to go out there today um to the right of this canopy, you would actually see some tents.

And so those tents are out there to protect um the skylights that we're putting in for the baggage claim below.

So if you're out there and wondering what's going on, we want to keep the elements out of those holes as we open them in the terminal.

Uh but you know, this kind of face of hobby is going to be very um uh improved.

Uh and again, you'll see on that architectural rendering, you'll see on to the right of the canopy, you can kind of see the uh the the uh skylights that are popping up through there.

So that's you know, again, gonna be a big improvement for for hobby.

Next slide, please.

Uh again, doing a lot of work and it's it's starting to pay off.

So on our bag claim now, we have three of the new carousels up and in service.

Um so again, we've got to phase that because we always we're gonna ultimately have six down there, uh, but we always have to have four available um so we can handle the today's operations.

So we kind of built some of the five and six, which are the the the new ones, um, and then now we're starting to get into the old ones by taking them them out.

Uh additionally, down in the baggage claim, you'll see we've actually have new restrooms in there.

So that's the photos of the new women's and the new men's restrooms down there.

So they're very nice, uh modern arey um and expanded, so that's again a lot more capacity in there.

So again, starting to see some progress down there at hobby.

Um, some terrazos getting done uh in that area also.

Next slide, please.

Um this is a you know kind of photo of the construction itself.

So you can see that the pier is coming out there, and then the roof pieces is pretty much finished.

Um they should start hanging some glass on there pretty soon.

Um so again, progressing a lot, and then they're starting to do a lot of the concrete work uh in and around there that's gonna support where the aircraft parked themselves.

Next slide, please.

Um we've also, you know, again, we the the terminals are very exciting, uh, but we have to do a lot of work to maintain the airfield too.

So if we go to the next slide, um we just completed our um runway eight right renovation.

So what will happen is that runway is again one of the more original ones at the airport.

Um airplane tires are bald.

Um, and so when they land, the grooves are in the runway to provide the water runoff.

And so we had reached a point where we needed to regroove the runway.

So we thank you for the proving that.

Um, and so that was just recently completed on eight right, uh, and we're gonna be doing the same project on 927 up there uh sometime this spring.

Um so again, just continuing our maintenance up there.

It's uh you know, again, I've got a lot of lot of it's a two-mile long runway, and so we've got to go out there and grind it basically flat, and then we've got to regroup it.

Next slide, please.

Um also doing a significant uh taxiway reconstruction over there.

So um Sierra Alpha and Sierra Bravo are the taxiways that parallel runway 927.

Um 927 is about 10,000 feet long, so those taxiways are both 10,000 feet long, and so we're in there um redoing it.

So the picture on the left kind of shows the alligator cracking that was on the old pavement, and so it had reached its condition uh that we needed to replace it, and then now you can see the slides on the pictures on the right kind of show the new asphalt uh and that shows that that you know again we've got a nice new piece of pavement out there for you.

Next place.

Uh and then for hobby, we've got the runway.

We had 13 right closed for a while because we're doing a safety and enhancement at hobby.

Uh and what I mean by that is there's a project that the FAA funded with some grant funding and some airport funding.

So it's just an added safety feature for that.

And so with those new changes we've opened the runways now and and and improve the uh situation at hobby.

Next slide please one of the key things obviously when when when I took the job the mayor was uh very focused on making sure we fix the traffic at the airport and then we also fixed the restrooms and uh again I I you know the restrooms over there kind of spoke for themselves so yes absolutely we focus on that next slide please um so we are in the process right now and we have opened some of our new restrooms so we again we thank you for the funding to allow this but um about thirty million dollars in restrooms at terminal A and D.

Again a lot of that's going to be grant funded to from the FAA.

We have opened uh new sets of restrooms in Terminal D.

Uh terminal A restrooms are under construction right now and will be opening sometime uh in the spring um and then we've got some hobby restrooms that are about to open um at hobby uh so again very excited about that uh because the new restrooms do make a big improvement on customer satisfaction for what we see at the airport.

So again we measure customer fat satisfaction with our restrooms with the uh little smiley face frowny face at the airport and so when we've opened a new restrooms those smiley faces skyrocket uh and then when we have our old dated restrooms uh the smile the frowny faces we can kind of see that so very excited to be able to actually deliver these uh because it's something that the airport we love it uh and then the passengers love it too next slide uh good thing too is United Airlines has actually started their restroom projects so if you look over there on the left that's the existing restrooms in terminal C they're a little long in the tooth also um the design on the right is kind of what they're gonna go to is their modern um restroom design and then if you'll notice you know on the right side again stall doors that kind of go all the way down or almost all the way down to the ground so and no seams in there so a lot better customer experience for that and we're very excited that that's actually kicked off.

So again United is you know responsible for the restrooms in C and E.

So B obviously is going to come with all new restrooms.

Next slide please and so you'll see that this is the project that they started um in Q4.

Well it was actually it was a little bit uh it was actually started in Q1 uh was a couple days after the holidays we wanted to keep the restrooms uh open and available for the the holidays but um 17 restroom sets so they've again got to do them in a phased stand uh phased way so that we we don't close all the restrooms in in the area we've got to do onesie twosies um so that we can continue to have passengers use that but our current ones are at E11 so that is the first set that they're gonna do um that's also going to give United the ability to kind of learn some lessons about what they find behind the walls because you always find stuff behind the walls uh on older terminals um so that's going to give them the ability but they'll continue to progress and we're very excited that they're underway um so that we can get those opened next slide please um roadway improvements so we've uh obviously been focused on the roadway improvements so I was very excited today I ran the numbers for 2025 um and uh we had zero severe traffic at Bush so very excited about it and then heavy traffic was was de minimis so you know on peak uh holidays or if you had a thunderstorm event that's the only time really we're seeing heavy traffic so big improvements in the railway traffic at the airport.

Next slide please again for our folks that come in off Will Clayton you will know this is a lot of construction going on over there.

So that is the uh Will Clayton Kenswick intersection.

So Kenswick Road is a um you know it's a four uh four lane road out to the north of it and goes down to a two lane and there used to be an intersection in the middle and you had to make a U-turn to go to there and it was a big giant mess uh and very you know kind of not conducive to smooth flow over there.

So we worked with um you know the the the the um the city to be able to put this intersection in.

This also does allow us to move traffic off of Lee Road um coming from the north so 1960 to Lee Road in the airport.

That's a lot that's our cargo area and so we've got a lot of cargo traffic that happens on that road and we we're mixing it too much with the general public over there.

And so by doing this intersection that's going to allow us to enhance the cargo operations there and then ultimately we're gonna expand the cargo facility across Lee Road so this gives us the ability to to to do that cargo expansion in the future.

Next slide please central utility plant so this is one that I want to sort of put on your agenda or on your on your radar because we are going to be coming asking for additional funds or you know the the the the the appropriate funds for this on on the schedule.

So just to kind of recap on that, um the central utility plant was built back in 196 uh 9.

We renovated it in 2012, uh, but we you know only did some of it, and so now we're coming back in here to root to do a lot of the the stuff that wasn't done.

So again, we've got seven chillers out there, but two of them are the old-fashioned steam chillers.

Um, and so we're wanting to make sure that we we upgrade the new stuff um to modern standard.

So if we go to the next slide, um what we're gonna be doing again, we're gonna be replacing four of the uh chillers out there uh demolishing the steam boilers.

Um so again, that's gonna help us also from uh uh a gas usage percentage um at the airport if we're not reusing the steam boilers.

Um we've got some cooling towers that are out there that we're gonna re uh renovate.

Um and we're also gonna do a lot of the switch gears and the transformers that that feed facilities, so kind of a complete rehab of the whole facility to make sure that it's there and ready for us to perform uh into the future.

So uh from a appropriation standpoint, uh thank you again in June of 2024.

You guys gave us the seed money to kind of do our design and some demo out there.

Um very shortly we'll be coming to ask for some funds um for our advanced purchases for the long lead mechanical items.

So that's again the chillers themselves and the electrical equipment and then some additional demo work, and then sometime later in the summer we'll come forward with the final appropriation uh when we get our our our uh GMP from the contractor that we're working with.

Next slide, please.

Um so again, also you know part of the airport experience is the parking and ground transportation uh that we get here.

So we want to make sure that we continue to invest, you know, again from curb to gate.

Uh next slide.

Okay, so this is again our new ride share area.

So one of the complaints that we've got uh was that the ride share area in terminal C was too small.

Um so we worked with United Airlines to relocate some parking, and with that uh we have a new ride chair area there.

Importantly, um it doubled the entrance and exit capacity of that area and then added a bunch of curbs there, almost doubling it.

So um they're more than doubling the curb capacity there.

So if you want to play the video, um you'll see that we've got again these nice graphics in here.

Uh we've also upgraded the lighting system in there to make sure it's nice and airy.

Um we had installed special Wi-Fi there because the uh cell service was uh was not the greatest.

Um but uh happy to say that the uh carriers have now um upgraded the cell coverage in the area too, but we still have the this uh Wi-Fi there just in case.

Um but this is have a big improvement to customer satisfaction because we used to get this was a bad experience because it took you too long to get your Uber, and then also that traffic ultimately backed up into the core because of the fact that you only had one entrance and one guy uh uh exit now with the two entrances and two exits, uh, really making a it flow a lot better.

And so we're very excited about the the performance that that it's done.

Next slide, please.

Um again, we've completed our curb work, so again a reminder um last you know year we were just opening these new facilities, and to the left used to be that temporary international arrivals curve that used to choke the exit of the airport, and that is the was the bane of our existence, and I'm happy to say that it is gone.

Um but now we've got on the nice uh nude arrivals level.

You'll see that we've got uh the those modern lanes down there.

Uh again, we've got a nice piece of artwork down there to welcome you to Houston uh and it and it's functioning and flowing very well.

Next slide, please.

Also, we've improved the parking control system at the airport.

So uh again, you get that um new system because that was another complaint that we as the airport would receive from the the jar the traveling public is is that the old system it was had a hard time reading the barcodes, um, and then again it was it didn't allow us to you know kind of a seamless experience.

So if you touch that, I think it's a video there.

So now you've got the new system, and it if you register with the airport uh for your parking, it now will recognize your license plate and it just reads your license plate, the gate goes up, you go park, and then when you leave, you show up, it reads your license plate, the like the gate goes up, and you just walk out the facility or you drive out of the facility and it just builds your credit card.

Um so it's very very fast and efficient and uh customer friendly because of the fact that you don't have to dig for that ticket and after your your trip and trying to figure out where you left it and those kind of things.

So again, we do um post parking surveys with our traveling public that come to the airport and see how their experience was prior to this uh new system, and then coupled with the traffic concerns that we used to have in the airport that used to back up the garage.

Uh, we had negative uh net promoter scores on our parking uh a lot at a lot of the airports.

Now we are uh significantly positive.

So this has made a big change in the parking experience of the airport.

So very excited about the seeing that that you know come to come to pass is that you've got this negative experience that we've been able to turn into a positive.

Next slide, please.

Uh additionally for the parking shuttles at the airport, so we've got a brand new fleet of the parking shuttles, um, and those new come uh new shuttles come with GPS, and so now we can watch them, and then there are now displays at the spots where the the buses pick up and drop off that give you the the estimated time until your next shuttle bus shows up.

Um also on the left, you'll see we added some bus shelters for our rental car passengers.

So traditionally um those areas where it get congested, um, and with that congestion, people would be waiting in the sun or the rain, and so we decided that it's no that's unacceptable for our passengers, so we put the bus shelters in there.

Uh and then also the number of rental car buses we increased for this summer uh to help help cut down on the um the time it would take you get to the rental car facility.

Next slide, please.

So this is another project that we want to make sure that we put on your radar because this is going to be coming before you.

So we're gonna be doing a modernization of the skyway system.

And so the Skyway system, you know, again, first installed in 1999.

Um the control system on it is old but reliable technology, but with that um we have to keep a large gap between between trains, and so that leads us running to a 117 second headways in there.

And so the vehicles also are getting pretty close to the end of their life, um, but it's a very important piece of infrastructure for the airport.

It moves about 10 million passengers per year, you know, just on that little train system, and so we want to make sure that we we upgrade it so that we can have the growth that we need to match the growth that's happening at the airport.

So it's gonna be north of 260 million dollars in capital upgrades.

Um thankfully it is also grant eligible with the FAA.

So I know a lot of us got emails about grants, um, just you know, so this is one of those things that we will be putting in for grant funding in that.

But just you know, specific to the grants that we're on um that we were asked about.

Um we have been putting in grants for the airport system on those that for that grant program, and we have been very successful so far with that um terminal specific grant program.

We've secured sixty-eight million dollars in grants uh and we are going out for uh this next round of grants availability again for uh the skyway some funding for that, and then also again our conveyances at the airport.

So we're trying to upgrade our escalators and elevators at the airport using some grant funding.

So we'll we'll see some applications go in for that.

Um but with that new system for the Skyway when we get it, um, it's gonna increase the system capacity by 18 percent just by using that the control system because we can shrink the headways down uh between trains.

Uh additionally, we're gonna be increasing the fleet size of the um train sets that we have out there.

Um so with that that would get us a net uh increase to about 30 percent capacity for the train sets.

Um for the system over there.

Then we'll also do some upgrades over there, so again, new platform doors.

Um and again, this is gonna be a complex project that's gonna go probably somewhere in the neighborhood of four years to be able to do this whole um project uh uh with the additional to get the the new systems.

But the reason it's so long is because of the fact that we want to minimize the impact of the traveling public.

Um so we've worked with the contractor that's gonna allow us to um shut down the systems only in the t the in the low periods.

So we've got January into February, we would have the system close down, uh, and then also September, October after Labor Day, we would close it down so then that way they can do a bunch of work, and then as the traffic starts to build up, we would re-energize the system.

And they'll still do a lot of the work at nighttime when when the passengers aren't there.

But we want to again try and make sure that uh because again we're moving 10 million people on there, we don't want to shut it down for years because there are some airports that have done that.

They basically shut down their system to redo it, and then you you convert to a busing operation, and the busing operation is just not very passenger friendly or efficient.

And so we want to minimize our need to do that.

So this is gonna be a way for us to to get this great upgrade from a capacity standpoint, but minimize our our impact on the traveling public.

Um then also coming across uh coming kind of with that package is also a new OM contract for the operators to be able to operate the system into the future.

Next slide.

And so that's kind of my presentation for the day.

So I'm ready to ready, willing, and able to take any comments or questions you've got.

Thank you, Director.

That was a lot of good information, a lot of good moving parts at the airport.

Do want to welcome Councilmember Davis to uh the meeting as well.

A couple of questions that I have, and do we also have some um colleagues in the queue?

What kind of riding data are we seeing for the metro bus going to IAH?

You know, that's something you'd probably have to address with Metro.

Um, you know, I again I think it's one of those things.

It's a new service, right?

So it's it's gonna it's gonna take a little while for it to start off.

What we're trying to do right now and work with Metro is to make the the bus as successful as possible.

And so we want to that's why we kind of work with Metro to move it towards the international passenger, and particularly with the World Cup coming.

Um you're gonna see, you know, obviously we're gonna have lots of of international visitors coming here.

That's gonna be very easy for us to be able to send uh folks to the metro and then take the 500 directly into downtown.

Um if we think about um you know, again, we've got Germans, we've got Dutch that are coming in, we've got the Portuguese, those are people all accustomed to using um uh they're all accustomed to using the uh the transit option to the airport.

So uh and then we're also working again communication-wise to try and make it easy for them.

So right now, if you go to the baggage carousels, this is a change that we made the other day.

Um the baggage carousels now and in in the bottom of uh the international terminal now have a a graphic in there that basically highlights this service because it's one of those things that we're really trying to get the message out on this because it's uh you know again, it's a new service, so people are you know, kind of used to how long have we been doing it?

Uh it started in the fall.

Um I think it was august sometime August, September, something like that.

It was yeah, it's been it's only been there for a little bit.

So yeah, it's a new service, we're excited about it.

And then it's like four dollars.

Four dollars and fifty cents.

Four dollars and fifty cents.

So and if I wanted to ride the metro to IAH, I could get it at George R.

Brown.

Yes.

I can go to George O'Brown.

Yes, and it's up on the metro, pay four fifty and get to IAH.

Yes, and it's you know, again, we've we you know some of our staff use it, they use it to go downtown.

Some of them actually use it to go to the the Astros games.

Um so they'll come from the airport and after the the the after day of work, they'll jump on it and go to the Astros games.

So it's it's you know, it's and again the key thing is bringing it down to the George R.

Brown.

It's serving those two um, you know, kind of big hotels there.

Right.

Um, you know, for the FIFA, it's gonna be very close to the to the fan center.

Uh but then also it, you know, the metro kind of network from a rail perspective is all right there.

So if you need to, you know, make a connection on another route there.

Uh ultimately it's also going to get rolled out to Hobby Airport.

Um so we'll have a connection to Hobby.

Um and so we'll offer that's that you know, Metro's gonna offer that service.

It's good because sometimes you know we get people at Bush that show up looking for Southwest Airlines, and we have to explain to them that your airport's tw uh your your flights about 22 miles away.

So now we can have them jump on the bus and then they can go back there and catch it.

Sounds good.

Then my other question is how are we getting the messaging out about parking?

I've had a couple of folks um ask me, you know, do I have to park, do I have to register to pay to park ahead of time?

And I didn't know that.

So when I got to the airport, you know, I was I was late, I almost missed my flight, I was all stressed out.

Um how are we getting our messaging out about parking?

So a couple ways.

So number one, whenever I'm on the TV for like the holiday, you know, what's going on, I always tell people to to register for their parking.

Also, we we locally target ads to folks via Facebook and the social media platforms.

So I'm I don't know if it's popped up on your feed, but it pops up on my feed where we you know talk about the benefits of of signing up for there, and you it'll take you right there.

Um we've tweaked our web page too, so our web page now has that parking um reservations right on kind of the the main page, and then obviously it it's like two clicks until you can do it.

Um we also highlight the fact that um not only is it help you can you know kind of can you know reserve your spot and and make your confidence uh but it's also usually comes with a discount too.

Um so we want to make sure that people are aware that we know we want to try and and get people to use that.

Um so we'll go over there.

So again, we're using that with uh you know the the direct marketing via the the news stations during the holiday peak periods, uh but then also we do our our direct marketing to Houstonians um on the social media feeds that will f you know show them the the airport parking ads um to be able to to do that.

So and again our web pages also will tell you that it's a good idea.

And then we'll we do our own social media posts too to our Twitter and our our Instagram.

Right.

So if I bought a ticket from United or somewhere and after I purchased my ticket anywhere in that, does it say you should reserve your parking?

I mean, I don't know if that would be something that each individual carrier would have to institute, but I think that when people buy a ticket, at some point we need to say, go ahead and register for your for your parking.

Because if I buy the ticket, I'm not thinking about going to the website of the airport.

Yeah, so we've got um so we did actually do a a pilot program with that for for United, and it was pretty successful.

Well, so we will continue to do that so that we, you know, we don't we know it's not part of your ticket process.

Right.

Uh, but we know that you are flying uh and so since we know that you're flying, we will send you the email um ads that will will show you know register you for your parking on there.

So it is something that we do.

I do I do think that that's important because the person that came up to me that were very upset about not knowing that they had to register the park.

I was like, hey, I I will make sure that I share your message.

Yeah, and again, it's it's generally during the holidays and then during the summer peak is when when we have when we go to reservations only, and then certain lots.

So again, on the um Will Clayton inbound, the the economy lot there, that one tends to fill up on a regular basis.

Um so you know the simplest thing you can do is just register for your parking and you're always good to go.

All right.

Uh Councilmember Castillo had a question.

Thank you, Mayor Pro Tem.

Director, thank you for the update on all the projects uh going on at our airports and what we're doing to keep them world class.

On the on the Metro bus, so it wasn't C is it now only in E or is it in C and E?

So we have two metro buses at the airport.

Um the express bus express bus to downtown is at Terminal E.

The other bus, which is more employee focused, is at Terminal C.

Um, we've got the two lines there again.

The express bus for passengers is at E.

Again, we wanted to put it closer to the international traveler who's more likely to use it.

But the traditional bus that we've had that service is generally the the working folks at the airport, that still goes into C.

Got it.

And so um I mean it is a great service, great value, really convenient.

I've I've used it myself.

Um it went to C at the time, so now it's going to E.

If the ridership were to increase, there could be adjustments to accommodate more terminals.

Yeah, so again, that's something that Metro's got to decide on their their kind of the amount of time that it takes them to turn a bus.

Um so again, we'll we'll see that um and and we'll let Metro monitor that and see how it does.

Um but we want to again uh you try and make sure we're excited to have the service because it's a great you know amenity.

Because again, we think about other airports when we try and compete for conventions, particularly uh or international flights, it's something that we can use as an advantage for us to say yes, we have nonstop service into downtown, so conventiers and again tourists and groups can have the ability to use it.

Um so we're excited to have the service.

And then um on the skyway update, that was really uh good information to see.

Are there any plans to upgrade the tram that's uh sort of on the lower level um at Bush?

Yeah, so we're working on that right now.

The challenge with that is because of the the geometry of the tunnel, it's a little more complicated.

There's not there's not like an off the shelf kind of design for that.

So again, the the existing tram itself was built by Disney because back in the day that's the only people that kind of did that.

So um we're exploring a bunch of stuff, but we're we're focused right now on the skyway, we'll get that squared away.

And the and the subway is we're working on it, but I just don't have a solution right now to to be able to bring it forward yet.

Great, thank you.

Councilmember Alcorn.

Thank you, Chair, and thank you, Director.

Great updates.

Remind me the seven gates at hobby and that West Concourse.

What what's the timeline on that?

Um so they're looking like it's probably gonna be the first part of 2027.

Uh so we'll we'll open United in the fall at Bush, and then you know, just after uh that's uh you just sometime early 2027 we'll open it uh the hobby gates.

And what airlines will be is that gonna be all southwest or uh who else is coming?

So six of the gates are for Southwest, and one of the gates is a City Gate, so that's for us to go out and market and try and get additional airlines to use it.

Okay, got it.

And on B, is that what you were talking about United?

Yes.

Okay, B is what what time?

Early 2027 for hobby and Bush uh the the United Gates is gonna be fall of 2026.

So that towards the end of this year, um United will be open in uh the terminal B comp uh.

Great, thank you.

And uh parking registration, will that come to hobby too?

It's there.

So you can reserve your parking at both.

Okay, your slide just said IH, but you can register your car for hobby.

Okay, great.

Yeah, so we have the modern systems at both airports now.

Okay, good.

Um there's an item on tomorrow's agenda.

I think we got Todd thanks from some questions answered on the um there's a item 13 on next week's agenda.

We're purchasing um a hangar and some stuff at 1.7 million dollars not being used by the company that owns it, and what do we have a future use for that or what?

Yeah, so so we're we're we're wanting to acquire it for a couple things.

Um so we've got a prospective uh tenant that is interested in, but then also it's it's a location that we think may be good for our ultimate EV tall.

Um that was my next question.

Yes.

Um so it comes with a lot of ramp out in the front, and so um that may be something that we would be able to use either traditionally as our hangar for for some some corporate activity, or it may be a good opportunity for us to put the EVTOL operation at at Ellington in that facility uh because where it's situated.

So we want it acquired early.

Okay, great.

And and on the E VTAL, uh I guess that's all still in the works on with I mean, are we working with with all the companies?

I know we did something.

United did something with Joby or Archer, or is it United Archer?

Yeah, so a couple things that are going on with that.

So um, you know, again, we're we're internally working on stuff.

Uh in the sometime in the first part of this year, we're actually going to be working a tabletop with the FAA and the manufacturers.

Oh yeah, that's right.

Um that are gonna so we're gonna we've got a couple locations at Bush that we are are you know where we're thinking about putting these, and so we're gonna sit down with the manufacturers with the tower controllers and then our planning staff and and kind of work through this and like does this site work or doesn't it site work?

And then once we get done with that tabletop exercise, then that gives us a little more visibility on on what infrastructure we would put at Bush um to do the UK.

And when is the tabletop?

It's uh again, I think it's it's sometime this spring.

Okay, great.

Thank you very much.

Councilmember Davis, you had a question?

Yes.

Thank you.

Thank you, Madam Director, uh Chair.

Thank you, Jim.

Great presentation, a lot of information for both Bush and Hobby.

Some good things coming.

Um, just had a few questions.

Um relatively the one that generally comes from me, being the only veteran now on the chamber council.

What is the changes?

Have that been a better, you know, the question that we my concern last year was about the parking for veterans, the the benefit to them.

Is that understanding as wasn't a designated or they is a designated place, or they did away with the designation?

So there's no designated location for it, but there is designated access for it.

So we've got two so you've got two options for you.

So if you come into the garage, uh you have the ability to park there for I think it's a week, and then but if you want to be longer, you can go to the economy lots, and the economy lots let you go at the uh a month or a month plus, something like that.

So those are the options.

Yeah, and I knew a lot of a lot of people, I'm sure questioned you about that a year ago, but but but they can for a week.

I mean, you know, after that, then you go to the to the uh economy a lot, yes.

Very good.

Other question I had was you were showing the changes that were done at at there at IIH.

There are there showers being available in case someone had an emergency or something in any of those terminals, or there are showers available?

Um so we don't have general showers available.

Um there are going to be showers, there's existing showers that that are in the um united clubs.

Um so the some of the clubs have showers in them, but just generally we don't have a like a uh uh a facility in there.

Now it's something that we're looking at because when the way that we're working right now is when the international carries move out of Terminal D, um that's gonna leave that D ticket hall available for us to be able to do some some you know concepts in there.

And so that is one of those things is we're looking at as an arrivals lounge.

Um and so that would probably include some showers in there for folks, but uh we're not quite there yet.

Okay, good.

Because you know, in a lot of cases have emergencies or whatever.

Yep.

I'll I'll wait and get back to that.

You have another question?

Yeah, well.

I had a couple of them and I'll wait to get back in the queue.

Okay.

A couple of them.

Okay, Council Member Mayors.

Uh thank you, Madam Chair.

And and uh director, thank you for the presentation.

Just a few questions.

You mentioned that uh passenger traffic uh domestic anyway was was down a bit in 24, and you mentioned a couple of airlines related to that United and Spirit.

Uh what was it, what was a trend nationwide, do you know, up or down?

Um so it's gonna be maybe down to maybe flat I would call it probably flatish nationally, maybe up uh just a smidge, but it really depends on the markets and the air airlines and the airports.

So again, if we talk about spirit, yes, they from a bankruptcy perspective, they they've taken down capacity uh significantly across their network.

And so, you know, some airports, like I give you the one of their big giant hubs is Fort Lauderdale.

So I'm sure Fort Lauderdale is taking a bigger hit than a lot of airports uh are considered.

Okay.

The new baggage handling system, is that for all the terminals?

Uh which Shareport.

Uh IAH.

Yeah.

So IAH, that's just that's just gonna feed the uh the international terminal itself.

So that's already been tested and it's working fine.

Yeah, so we we had our our our the contractor who installed it, tested it and performed as needed.

Uh we've are doing our third party testing right now and it's performing as as requested, and then our next step is the the TSA ultimate final authority, and so that will be testing um starting in in February.

All right.

And you spoke about the Skyway modernization.

Do they still do you still have that sort of underground rail?

Subway.

That's we got the skyway and the subway, yes.

And and how uh how much how much use does that get?

Um so uh uh I've I don't have the numbers off the top of my head, but it's significant.

I mean I think it it's it's significant.

Yeah, it's it's it, you know, it's uh it's I think both both train systems at the airport individually, I think do more passengers than all of Metro's rail um combined.

So so yeah, that it's a you know the it's pretty substantial usage upstairs and then downstairs.

Uh don't quote me on this one, but I know we probably have that we probably have months of the year where we've got 300 to 400,000 people using the the subway.

Have you shared that comparison with Metro?

Uh no, no, I don't want to.

Okay.

And last topic.

Um the EV toll.

Yes.

Um what what can we expect with that coming up?

Because you you spoke about the facility hobby.

What about uh intercontinental?

So that that's again part of that tabletop.

So we can't really locate a facility yet until we find out um where it works from an airspace perspective.

Because what we want to do our our ultimate goal is to do no harm um at Bush as far as the air traffic is is concerned, and so we've got to find out a spot where it doesn't interfere with air traffic, uh the existing air traffic, and so that's we gotta figure out first before we start talking facilities.

All right, thank you.

Councilmember Davis, back in the queue.

Thank you, Madam Chair.

One one last you spoke about the central utilities plant.

Um there right now uh any contracts that are starting in regards to the work is going to be So the contract it constructed has already been awarded.

Um and so it's a it's a design build contract that was awarded to Hensel Phelps.

What's going on right now is is that the design is done and we are procuring the contractors procuring um the pieces and parts that they need to basically do the construction.

So it's already been done.

Uh yes, for for the the contract itself for the for the design and construction of the facility, uh yes, it's right now again, we are going to be asking for funds for the pieces now of it building the you know, buying the chillers and the transformers and those things.

Okay, okay.

Very good.

All right.

Thank you.

Um Director, we got an email from a representative of the Houston Taxi Association on yesterday.

Um when we we talked about the expansion of I guess the pay the where the Uber and taxis are.

Yes.

Uh was there communication with the with the taxi drivers?

Because I'm I'm assuming that they um they feel like there's reduced parking space that will impact the taxi.

It's a different different situation what they're talking about.

So what we have is is that on Will Clayton Parkway, let's just call it like a half mile outside of the airport.

Um we have two staging areas.

So we have a ride share staging area and we have a taxi staging area.

And so the volume of ride shares is significant right now that we had to go into the taxi staging area and take some spaces there to be able to use that to um you know balance the load uh because taxis have are significantly down at the airport from uh compared to the to the to the rental.

I'm sorry, not the rental card, but the um the uh Uber lift kind of operations there.

And what we're having right happen right now is is that because that that um you know kind of ta uh Uber lift lot is so full, um that's spilling back out onto Will Clayton, and when it spills out on the Will Clayton roadway, it it causes congestion coming to the airport and it's not very safe uh because that that road is a 50 mile an hour road, and so um folks traveling along there um are you know running into a traffic jam that's that's trying to get into that lot, so we're gonna have to um take some of the space over there to be able to use that um and then that's gonna help us pull all that traffic off the roadway system and get it somewhere uh because we just can't we can't tolerate putting it out on on the Will Clayton because it's just too dangerous and um interferes with the air uh has that has that conversation been had with the Houston Taxi Association?

It has, yes.

Okay.

Um I'll let them know that who who would be the person the for the Houston Taxi Association to speak to.

So they had a conversation with our ground trans lead, that's Walt Gray.

Um so we did have a conversation with them where we you know we've kind of compromised with them.

Um so it is one of those, you know, again, we're gonna take an outdoor area versus an indoor area over there.

So we we did have a conversation with them and we've kind of come to an agreement on how we're gonna do it.

Okay.

I will let them know.

Um if no other questions from my colleagues, thank you very much for the update.

We appreciate it and hope to see you soon for another update as we progress.

Yes, I gotta go ready for uh for the weather this weekend.

I know, wishing you the best.

Thank you.

Do you want you wanna you want to say something about um our plans and our preparation for this weekend's weather?

Yeah, so for us is from an airport perspective.

Number one, I you know uh grew up in Chicago Airport system doing snow removal there and lived in Alaska for four years, so I kind of know this.

So um working with the team.

But but we've got so we have we have as the airport have our own um equipment to be able to do the icing of the the airfield and the taxiways and runways, and then we also have a third-party contractor that's gonna come in.

So we're gonna divide it by um putting our folks are gonna focus on the land side, so they're gonna do the the curbs and the roadways for the airports, uh, and then we'll have our contractors gonna do the taxiways and runways.

Um and again, that's the the thing great thing about the vendor is they bring somebody in, they bring a bunch of people in from the north that know what they're doing.

Um they'll be able to do that.

And so we'll be able to put some de-icing chemical on all our our our areas, and if we if we have a challenge, we can all it's Texas, right?

We can always go throw some tahine out there.

Um just kidding.

We're it's just my joke.

I'm not gonna put tahina on the runways, but it might be an option.

I think I'm the only I do have rock salt in my garage, so and I on my ice skates and my ice cleats, so I'm prepared uh for the weekend.

So I do.

I brought I brought it from Alaska, so it was put I put it in the moving truck.

So from sh from Alaska I brought it, yes.

So yeah, I'm I'm ready, I'm prepared.

Thank you very much, Director.

Wishing you the best this weekend.

All right, thank you.

You and the entire team.

Next on our agenda um colleagues is a presentation by senior staff analyst Andrew Busker with the mayor's Office of Economic Development, and he will present on uh another TEZ nomination.

Mr.

Busker, thank you for being here.

We are ready for your presentation.

Good afternoon, everyone.

I don't think this will take too much of your time.

Um wait for the slides to go up before I continue.

So um we have um a conversation about the Texas Enterprise Zone program today.

Next slide, please.

Um so the Texas Enterprise Zone program is a quarterly application process.

So we're looking at the March 3rd application deadline to the state.

Next slide, please.

So as a refresher, the uh Texas Enterprise Zone is a state program um that uses a reimbursement of state sales and use taxes, so there's no um funding commitment from the municipality.

Uh we receive nine nominations per state biennium.

Uh so far we've only nominated one project, and for this presentation, we're proposing uh one other um for our nominations.

Um if a if the a county wants to nominate for the Texas Enterprise Zone project, uh we then have to sign on to an interlocal excuse me, an interlocal agreement with the county to say that we we support that nomination.

Next slide, please.

Also, the um application is divided into several different investment uh categories or different categories based on investment and job numbers, and then based on that determines what their uh refund would be for the company.

Next slide, please.

So we propose to nominate Energy Energy Incorporated, located at 1301 McKinney Street, um downtown.

Next slide, please.

So you can see the map on the right is their project site.

Um the company has moved their downtown offices, and so in that whole process, they're doing tenant improvements, um new furniture and fixtures for their uh facility, um computers and other IT infrastructure for their um investment.

So as a whole, it's about a $37 million investment.

Um, but for the purposes of this application cycle, about 10 million dollars is what they're submitting to the state for their application.

Um I do apologize, there are some typos in the uh salaried numbers.

So the um average retained jobs is 144,000.

The new jobs is 11,000 for um their um average salaries.

And a lot of these, you know, being a downtown headquarter office, a lot of these are corporate um positions, so business and financial operations, IT management positions, office and admin, sales marketing, th those sort of rules.

Uh next slide, please.

So looking at the uh general timeline, uh the nomination resolution is expected to be on the February 11th agenda uh for city council's consideration, and then um that provides the company uh enough time um if if nominated to apply for the March 3rd uh application deadline.

So at this time I'll take any questions.

So um they are saying that they are creating of 150 additional jobs?

Correct.

Yeah, those are 50 new jobs, yes.

Do we know what those new jobs actually will be?

Not by specific SOC codes necessarily, but they are in those um the classifications here of business and financial operations, um information technology management, office administration support, and sales and marketing positions.

If you'd like uh more detailed lists, I can ask and provide that to you.

Yeah, I'd be interested to know what type of jobs those 150 new jobs are.

Uh Councilmember Ramirez.

Thank you, Madam Chair.

Thank you, Andrew, for the presentation.

Just a few questions.

So NRG, these offices uh they're right here downtown, is that right?

That's correct.

And um the information is that they will create 150 new jobs that they don't are that don't already exist.

Correct, over the over five years, yes.

And it sounded like those are white-collar jobs, is that right?

That's correct.

In an office environment?

Yeah.

Okay, and and I would I would like to receive that information as well that you're gonna share with our chair here.

Okay.

Um retaining 350 jobs, the does that mean that these are jobs that would leave if they did not get this uh this benefit.

In in a traditional sense of this program, I think that was the original intent.

Um as this program has moved over time, this is their main headquarters that employees, I think it's close to 1700 people.

So uh realistically, if they did not receive this incentive, I'm not sure if they would cut their staff at all.

Um but this is one of the few incentive programs that um high paying white-collar companies can utilize.

Um there aren't too many out there through the state that um that would fit projects like this.

And so that's why originally when this program was created, we were seeing a lot of manufacturing.

Um, but then now um as uh based on the program's requirements, we're seeing um we're seeing more um more high skill office jobs in the the companies associated with those jobs are applying for this program.

So if we're not sure that those 350 jobs would would have left, you know, if if they don't get these uh incentives, does that meet the requirements of the statute or not?

It does because the um there's not a but for requirement for the Texas Enterprise Zone program like there are for our other programs.

The state is just looking at investment numbers, what that salary looks like, what that job creation looks like, and if it if it meets the certain point criteria in that application, then the state considers that out of all the ones that are applied for that round.

And and what sort of due diligence or checking have uh you or someone else in economic development done to verify these these figures?

There's only so much that we can do because it's a commitment of a future action.

Um so what we do is uh we enter into MIUs with the company to provide us annual data that to say that they are living up to this.

Since it is a state program, we don't have recourse if they don't follow through with it.

Uh the state has their compliance reporting that the company has to provide to the state.

And so if they don't meet it, um the state will take away their um the incentive.

Okay, and you'd mention that the fi the salary figures on this slide are not correct.

Is that right?

That is correct.

Yeah, so they they are they are inaccurate on the slide.

144,000 um is the average salary for the retained jobs, and then 117, so 117 the average salary for new jobs.

All right, thank you.

Any other questions?

Uh colleagues, staff.

We did have one person signed up to speak.

Is Laura Gallier here?

Is Laura Gallier online?

Doesn't seem like she's here.

Um if anyone else in the chamber would like to speak.

If not, um no other questions or comments.

Okay, can you come to the microphone and state your name for the record?

Um Carla West.

My concern is what are the implications if you do not receive these funds?

I know it's just a nomination, it has to go through the process.

Um, but for NRG, what would happen if they don't get this?

How would they fund this project?

So uh traditionally for these sort of programs, um companies are looking for um as many avenues to provide um funding support.

So if um if they don't receive this funding, it's just money that's hitting their direct bank account, I guess, for for lack of a better phrase.

Um this project is already in the works, so it um it's a $37 million project, so to offset by 10 million is is great for the company, and that's what they want to pursue.

Um however, you know they um you know they they did start this project, so they they were expecting to probably shell out the full amount.

Councilmember Ramirez?

Thank you.

So the project is is already in the works, so it's gonna it's gonna be completed whether or not they get this benefit?

That's correct.

So it might be it might be completed faster with this, or um yeah.

So I mean I can I'm happy to set up uh a meeting too with um with the company or the company's client and or the client representing them and and do you have any idea how much how much uh revenue uh NRG generates on a yearly basis?

I don't know that number off the top of my head, but I mean it's a lot.

Okay, thank you.

Thank you, Mr.

Busker.

We appreciate you being here.

Colleagues, if there are no other uh comments, questions, um, I would like to just let everyone know that our next scheduled economic development committee meeting is on March the 18th uh 2026.

So if you are interested in receiving that information, you can contact our district K office at district K at Houston TX.gov.

The time is 303, and our meeting is now adjourned.

Thank you all for being here.