OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Antonio B Session Briefing on Airport Contracts - May 20, 2026

City CouncilWednesday, May 20, 2026
BodySan Antonio, Texas
SessionCity Council
DateWednesday, May 20, 2026
StatusFILED
Video Record
0:00 / 1:17:09
Transcript — Verbatim
0:47

Good afternoon.

0:48

The time is now two or four PM on Wednesday, May 20th, and the City of San Antonio B session is called to order.

0:54

Madam Clerk, please call roll.

0:57

Councilmember for.

0:59

Councilmember Mickey Rodriguez.

1:01

Councilmember Villa Conan.

1:03

Councilmember Mungia.

1:05

Councilmember Castillo.

1:07

Councilmember Galvan.

1:08

Present.

1:09

Councilmember Aldereta Gabito.

1:11

Councilmember Mesa Gonzalez.

1:13

Council Member Spears.

1:14

Councilmember White.

1:16

Mayor Jones.

1:17

Here.

1:17

Mayor, we have quorum.

1:18

Great.

1:18

Thank you, Madam Clerk.

1:19

So this meeting is a briefing on several high profile airport contracts.

1:23

So we look forward to the discussion.

1:24

Jeff, over to you.

1:26

Mayor, thank you.

1:27

Uh Mayor and Council.

1:29

Eric is uh doing an employee event right now, so I'm gonna sit in for him uh until get he gets here.

1:35

Uh today we have three solicitations related to the airport, as you mentioned, all large high-profile contracts.

1:41

Uh, the first is for the construction manager at risk, the CMAR for the renovation of Terminal A and B.

1:49

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 uh us launching our concessions process for selecting restaurants, bars, and retailers for the new terminal.

2:11

Um Jesus is going to get to those before I turn it over to Jesus.

2:15

I just want to announce uh some good news that we just received, which is the airport uh has been awarded another ten million dollars for the terminal program.

2:25

This is from the airport terminal program.

2:31

Kudos to the team and the relationships they have built with the FAA.

2:35

This is um another 10 million dollars towards the development of the new terminal.

2:40

Uh 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.

2:51

The 10 million dollars in this round is the largest of any medium hub in the country.

2:56

So we're all very excited.

2:58

Helps uh helps us build what we're all dreaming and excited about out there.

3:03

So with that, I'll turn it over to you, I see.

3:12

Good afternoon, mayor and council.

3:14

Uh glad to be here with you today, as mentioned.

3:17

Um as we look at the slide.

3:22

Today's briefing is over three specific high profile solicitations.

3:28

Um, it's going to be one post and two pre, as we move forward.

3:34

As we talk about these solicitations, and I'll go to the next slide quickly.

3:38

Um, from our perspective, the first one is a post-solicitation on the overall efforts with regards to the construction manager at risk for what we call taber, terminal A and Terminal B renovations and the rehabilitation of terminal A and Terminal B.

3:54

As you look at the dates of when it was released on uh a two-step process as it relates to the request for qualifications that then led to the request for proposals.

4:05

Um earlier uh this year uh 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.

4:17

We are doing the very same process for what we're doing in the process for the pre-solicitation process.

4:25

So the dates are there.

4:27

Um, as we went through the qualifications, we had four respondents into the overall process.

4:33

We looked at that uh late in 2025, did the initial evaluations, and then had three uh finalists that were reviewed as we went through the process and scored everyone.

4:46

In March.

4:48

We went through that process, um, and as I break it down, it's important to know that the two-step process, the RFQ process is experience, background, and qualifications, where 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.

5:15

And we looked at how successful they were with their staffing models, the teams that are putting being put together to assemble to do the work, all of the project sheets that are being looked at as we look at pre-construction, the phasing of the work, and then the completion of the construction work to be done.

5:37

And then, of course, historical, where have they worked, what have they done that align similarly to the work that we're asking for?

5:45

The personnel is a big factor.

5:47

We looked at all the resumes and the organizational charts of how they're putting together and assembling their teams.

5:53

On the general proposed work plan is uh 30 points, the subcontractors that are being selected for the plan and the processes that we're going to put into effect.

6:03

A very important phase to every work that we do is the pre-construction phase to ensure that as 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.

6:23

So that's the request for qualifications.

6:26

We look at that, as I mentioned earlier, that gets reduced to the step two, which is a request for proposals.

6:33

We had three successful candidates.

6:36

Again, we look at very similar, but they're in front of us and delivering all of their experience, their project sheets, their personnel are right in front of us.

6:45

Who's from San Antonio?

6:46

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.

7:00

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 pre-construction costs, contingencies, and how are they putting together all of their costing models and the way the work is going to be performed?

7:22

That overall led to the three final firms, which was Manhattan and Joers, which was a joint venture, Scanska, USA, and Austin Commercial.

7:34

And as you look at the scoring that was there, Manhattan really separated themselves on the request for proposals as we finalized.

7:42

I'll just share with you as we look at some of the strengths that were in there, whether it was in the pre-construction phase, because that's very important.

7:51

I remind you of the master work, the work that we've done to do the definition of our complete standards for the airport.

8:03

So 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.

8:13

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 that's to be performed.

8:27

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.

8:40

The sequencing and the work that is outlined helps us deliver, and we looked at all three of those.

8:46

The leadership into the construction, how much experience do you have, and how have you done the work before?

8:53

I remind you that the delivery of terminal C is on a brown field, right?

8:59

So there's nothing there.

9:01

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 date of beneficial occupancy for Terminal C.

9:20

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.

9:33

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.

9:48

The next is a pre-solicitation, very important element as well.

9:54

As we think of the speed of service for all of our passengers, it's the common use passenger processing system.

10:01

This is a request for competitive seal proposals, an RFCSP, as we say.

10:07

The estimated contract value is 12 million.

10:10

It's a five-year term with two one-year options.

10:13

It's going to come out of our OM account.

10:16

What is this for?

10:17

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.

10:31

These are common use kiosks that we provide available throughout the airport to expedite processing for our passengers.

10:38

This is taken into consideration of the additional ticketing counters and capacity that will be required in the new terminal seat.

10:50

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.

11:06

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.

11:17

How do they relate and have good relationships with us in the work that they are performing?

11:23

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 aligns to the overall cost of this effort.

11:38

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.

11:52

DeWan Johnson, who's part of the ITSD team and is assigned to the airport for all capital development projects.

11:59

April Payne, who's the business manager over airline affairs, working closely with the airlines, and Andrew Johnson, who is a member of the Miami Date International Airport, has agreed to be a part of this selection process as well.

12:11

We try to do that as much as possible to capture outside airport interest in what we're doing.

12:18

The schedule for this release of solicitation with you all's approval is May 29th.

12:23

The proposals are due in July of this year.

12:27

Evaluation scoring and interviews is August through September, and then a post-solicitation briefing back to you all for your approval sometime in October and November of this year.

12:41

The next one is the pre-solicitation briefing for the Terminal C concessions program overview.

12:49

Very big solicitation, very important for our airport as we continue to try and emphasize the importance of one.

12:59

What product are we delivering to our passengers?

13:02

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.

13:14

That overall percentage was close to 70% of locals that were involved in that effort.

13:21

And I give a lot of credit to the teams and the work that they have done to get to where we're at.

13:26

As we look forward to terminal C, it is close to a 35, 36,000 square footage footprint of amount of concessions in the variations of food and beverage, as you see in package number one.

13:40

Package two is duty free, a little over 1700 or close to 1700 square feet, and then food and beverage on number three and four in a variation of different mixtures.

13:51

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.

14:04

The pre-solicitation on this contract is for a term of 12 years.

13:59

And that is really, we had the industry day.

14:13

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.

14:19

Had over a hundred people attend very interested respondents.

14:24

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.

14:31

We want it to be separate.

14:32

There's a lot of legalities that are involved with running and operating a duty-free establishment.

14:37

One and then two.

14:40

Across the airport industry at airports across, they're usually done from 10 to 15 years.

14:48

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 cost and what they're doing.

15:00

For first year, as we talk about the minimum annual guarantee for us, and that uh in those parcels, we're guaranteed to get 8.6 million.

15:10

Um we issued the first two packages in the previous solicitation for the transformations that are happening in terminal A and Terminal B.

15:19

We originally came at 25%.

15:21

We came to you all in a B session, and you all told us, hey, you need to make it at least 40 Hesus.

15:28

And as I mentioned earlier, we got to 70 on the local participation.

15:32

I remind you that in the current administration, we do not have what's called, you know, ACDBE, which is disadvantaged business enterprise requirements.

15:43

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 where that's at.

15:54

We will continue to, you know, strive to award contracts to multiple respondents.

15:58

We say this, but we reserve the right to award multiple packages to a single respondent in the previous solicitation.

16:04

We said one couldn't get all in this one.

16:07

We're saying everyone compete, and we're gonna give it to whoever gives us the best proposals.

16:14

A little breakdown on the square footage and what we're doing on the first one.

16:18

It's the retail package.

16:20

You look at it uh pretty close to 11,000 square feet.

16:23

Uh, I I grab your attention to look at as you look at um the way you come into the terminal complex and you look at the security checkpoint.

16:34

That is the area on the right side of the slide, and you see those circular uh carousels.

16:41

That is all the security checkpoint.

16:43

That's where everyone comes in through.

16:45

We really want to capture as much as we can as people go through the checkpoint.

16:49

There's very specific data and analysis that's been performed by the group that we've hired on to help us align specifically where we should place these parcels.

16:59

A variation of multi-brand retails that we're looking at that can be utilized in each one of these square footages.

17:06

The identification of the pink on the bottom is where the duty free shop will be.

17:12

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.

17:23

The pre-solicitation briefing on the food and beverage package.

17:27

There's two separate ones on this one, heavy on the sit-down casual dining restaurant and the local bar concept.

17:36

We do have two specific coffee locations.

17:40

We understand what's happening in terminal A and Terminal B.

17:43

We constantly have lines at our coffee places.

17:46

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 given to us.

17:55

So we look at that as well.

17:57

But we put two specific uh coffee gourmet shops in this with a mixture of bars as well as uh people look for that as they come into the airport.

18:08

So that's this one, and you see where specifically those locations exist.

18:13

As I 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 you go to you know the market inside the Pearl.

18:27

We want to have that similar type of food hall market inside the airport.

18:31

So you see the two large square footages, one 4,000, one over 7,000, uh, with a mixture of another cafe pre-security.

18:40

So you have a lot of international passengers that arrive.

18:42

They're looking for places to grab a coffee or a snack as they're waiting for loved ones or family members to arrive.

18:48

Uh we've incorporated that as well in the effort with also local bar and food as well in other areas.

18:58

The pre-solicitation team consists of uh 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.

19:12

Deborah Amawali and Brian Moores are two uh advisory commission members.

19:17

They've been very committed.

19:18

Brian just came on, but he's part of the JW group uh here in San Antonio and involved heavily on the sales and marketing piece.

19:27

Uh Mario Bass, who everyone knows 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 and what she's done with our air service development group, and her continued involvement in what we're doing with airports, always been very helpful to what we do.

19:49

So that's our uh diversified group that's working to make the decisions on this.

19:55

The request for proposal will have 10 points for uh experience, background, and qualifications.

20:01

Uh it will look heavily at the structure, what they're each capable of as we look at it, uh, the design materials and capital investment, um, bless you.

20:11

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 gonna make into each one of the square footages and the parcels that are there.

20:24

The OM environmental sustainability is about the operation maintenance plan.

20:29

We have a very delivery method, a very different delivery of how we're gonna do the operations in Terminal C based on our design standards.

20:37

I just share with you.

20:38

We don't want the trash to be taken out through the front door.

20:41

We want it to go out through the back door, and we have very specific standards that we're improving on.

20:46

So we deliver we improve the level of service that we provide to our passengers.

20:51

Concepts and brands is a big factor as we look at everybody has their preference and what they want.

20:58

Take me to Takita's West Avenue, and I'm a happy guy, but everyone has their preferences, right?

21:04

Of what they want.

21:05

So we have a really cross-functional team that's gonna look at uh 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.

21:23

And then the financial projections is 20 points.

21:27

What's our return on investment to us, and how committed are they to looking at the overall percentage of rent and their long-term commitment with the city of San Antonio, specifically to the San Antonio International Airport?

21:42

The schedule, which is very important to us.

21:45

I've been telling everybody, Tim and Dave, who are leading the effort for us in the development.

21:49

Say Jesus stop kidding that we're gonna finish early because it's not funny, but we're working to be aggressive on our scope, schedule, and budget for Terminal C.

21:58

This must align with it.

22:00

So we are very rigor and focused on our overall schedule delivery, the release for solicitation with y'all's approval, will happen in June.

22:09

The proposals will be due in September.

22:11

The valuation committee will be working to review that October to November, and then a post-solicitation briefing in the latter part of this year or early January.

22:20

Back to you all for final decision.

22:23

Mayor and Council, that concludes my presentation, and we'll make ourselves available for any questions you have.

22:28

Thank you.

22:29

Thanks, Jesus.

22:30

You always do a very thorough job.

22:37

Thanks, everyone.

22:42

I want to highlight there were a couple of things that came out in my pre-brief with Jeff that I wanted to note in case they were helpful for others.

22:48

On the on the first one, which was the post, as it's a federal contract.

22:54

There weren't any points for local for those that were questioning why there wasn't some consideration there.

23:11

One in particular, or among the uh the various vendors, how does it look at uh various price points within that?

23:19

Somebody might want to pay seven dollars for a coffee, somebody might not want to.

23:23

Uh so how do we look at the right mix of those things given the range of travelers that we have utilizing uh that terminal?

23:29

Yeah, great question, Mayor, from the standpoint of what we do not only in terminal C, but in the terminals, we really try and stay as close as we can to street pricing.

23:38

So we have that um written in specifics in some of the things that we have in our agreements with these concessionaires.

23:46

So we try and stay as close as we can to street pricing.

23:50

Now there's a lot of dynamics that happen in this world that change prices as we talk about eggs and milk these days and what the price is for that.

23:58

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 uh in in their efforts of what they're doing at the airport.

24:09

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.

24:22

Yes, ma'am.

24:23

Um and I didn't hear you say it, but again, in case it's helpful for anyone else.

24:26

The common use passenger, these are only for those airlines that are non-signatories, correct?

24:31

That is correct.

24:32

Um, sometimes the airlines do want to be involved in it, and if a signatory or a non-common use airline wants to use it, we allow them to get on that platform too, just because uh it is for speed of effort for the passengers to be able to go in there, grab their ticket, they have a carry-on, they're not checking in a bag, they just want to get their ticket and go straight to the TSA checkpoint.

24:54

Okay, um, so on the um it's it's my slide nine, I'm not sure what number it is.

24:59

But uh on the point that city will strive to award contracts to multiple respondents, but reserves the right to award multiple packages to a single respondent.

25:06

Um this one jumped out at me.

25:08

Um my concern with four major contracts, right?

25:12

Going to one vendor, which is not an impossible scenario based on what you've described.

25:17

Um, as you mentioned, based on frankly, the less leeway we have, um, on uh given other factors.

25:23

I think we are I at least would be committed to making sure we're spreading the wealth as much as as possible.

25:30

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 had eventually brought on, but I think that's about a matter of kind of better managing contracts and not necessarily erasing competition.

25:46

So um I'd I'd welcome how we might be able to ensure quality but also protect that competition.

25:54

If you want to elaborate any further, you've said it perfectly, Mayor.

25:57

It is exactly that.

25:58

It's why we did it the last time.

26:00

It's important that we don't have a monopoly of that's running all of the concessions at the airport, because then there is no competition.

26:08

So in our efforts, we will certainly take your feedback.

26:11

It's very important for us that we keep that competition and the work that we're doing, as I was a part of the previous package and will be a part of this package.

26:19

We'll certainly review that with the team that's gonna be making the decisions.

26:27

That may go to my colleagues here.

26:28

Thanks, Jesus.

26:29

Um, Councilmember Alderte Gavito.

26:32

Thank you, uh Jesus, for the presentation.

26:35

Uh I want to first start sorry, I sound like a frog, but um I want to first start off by saying congratulations to you all for reaching a deal with Southwest Airlines.

26:44

Um thank you for working so diligently with it on it.

26:47

Um I know y'all's leadership team is killing it, and um uh Southwest is a is has been a great partner to San Antonio for years.

26:55

So I'm glad we're able to come to an agreement with them.

26:59

And um I'm also excited about these upcoming projects.

27:02

This is an exciting time at the airport, it's, an exciting time for our city.

27:06

Uh we know that uh, and we've pushed on this for years, how the airport is is so many people's first impression of San Antonio.

27:14

So it's important that we get it right.

27:15

Um and it will also obviously help facilitate economic development by accommodating more flights and more airlines.

27:22

Um congrats to Manhattan Joris.

27:26

Oh, on that, when is construction set to begin?

27:30

So we have a schedule, Councilwoman.

27:33

I don't want to give you a specific date just yet.

27:36

We need to bring them in very similar to what we did with the CMAR and the master architect for Terminal C.

27:42

We've already started to plan based on you all's approval to bring those groups in once we issue them a notice to proceed to have a meeting and talk specifically on their ability to deliver.

27:52

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.

28:02

We feel like we can start uh the design work.

28:05

We have a commitment to the airlines in early uh 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.

28:20

We don't want to overlap that construction with the work that we're doing at Terminal C.

28:24

Once that's completed in Terminal C and we've received the data 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.

28:38

Okay, uh thank you for that.

28:40

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 them who might be business travelers and always use the airport, but some of them who are not and are traveling to go see grandchildren or maybe once a year, maybe once every other couple years.

29:10

So just gonna 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 uh to the airport and what to expect because that's gonna be extremely important for us to let our residents know about.

29:26

Very much agree with you, councilwoman.

29:29

Uh on slide nine, you know, one of the things in under the last um administration under Mayor Nurenberg, I know um there were several of us, Councilman McQueen Rodriguez, Councilwoman Corps and Councilwoman Via Gran, who were really pushing on us to be um hyper-local with the businesses at the airport, and so um actually it it's what prompted me to do um what we're calling our bless you, our local meter CCR, and um really look at how the city spends our money and see how much we're investing in our local businesses.

30:08

Uh we actually just met with the Hispanic Chamber of Commerce for for feedback on it, but you know, I took that, I took the energy from what we saw um with the airport and how we were pushing and pushing for for local businesses.

30:21

Um so I was kind of curious on slide 10 um and 11 and 12, or at least on the printouts.

30:27

You know, is there different ways that we can still push for like this Gourmet coffee or or the cafes to to be local?

30:36

Because we have a lot of great coffee shops in San Antonio, Oyo Express, Mila Coffee, and so we right now when our our service industry is struggling, we would love to give them opportunities to be at the airport.

30:49

Yeah, I uh I the 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 uh forever on how incredible you know, Trey Pizzeria is doing with Chef Dady.

31:04

Um, Chef Johnny is making it happen at our airport for what he does.

31:10

One that brings people to tears, and she and I were crying just a few days ago because we just opened farm table.

31:15

So Chef Elizabeth uh has been incredible uh incredibly happy.

31:20

So those little pockets as those efforts are delivered to us in this proposal is where the team is gonna capture the commitment, the diversification of what's going to be offered to us, and look at and align it to as close as we can to the sense of place of San Antonio.

31:39

As I mentioned, it's pretty much a 70%.

31:42

Now, we'll tell you, we got to be considerate and balance uh with regards to some of the national brands because there are individuals that travel through our airport that only want to go to specific national brands, right?

31:55

Uh, I give Starbucks as an example because that's one that's there, but we got to have other offerings as well.

32:02

So you saw the pre-security, post-security.

31:59

We really want to increase our coffee opportunities as people are constantly looking for that.

32:11

Yeah, and I definitely, and I know that we've talked about it before.

32:14

And thank you for um helping us understand that balance, right?

32:18

People want sometimes they want the brands they recognize all over the nation, and we get that.

32:24

Uh but I think at every opportunity that we can, again, with that balance in mind, we should uh be uh picking up our or highlighting our local uh businesses too, just because and and I think especially even with coffee, right?

32:40

It's an easy thing that uh people can get plugged into, and then we're we're further supportive of our local businesses that way.

32:48

Um but things thanks again for all y'all do y'all are killing it.

32:50

Thank you.

32:51

Thank you.

32:52

Thank you, Councilmember Mesa Gonzalez.

32:56

Thank you, Mayor.

32:57

Uh thank you for the presentation and to your team.

32:59

I see some of your team members out here, so thank you for all the work you're doing.

33:02

And if you haven't taken a tour of the airport, uh to my colleagues, I recommend it.

33:06

Um, it really is uh really good stuff that you're doing there.

33:09

So we know that a modern safe efficient airport um is a critical part of San Antonio's economic development, um, especially as we look to expand and strengthen our ability to compete for new air services and conventions and the general economic conversation economic development conversations we have every week.

33:27

Um, so just on on the CMRA, uh, what's this?

33:31

But uh just to remind folks what's the specific breakdown of funding uh sources within the aviation capital fund for this project?

33:41

For the terminal A, terminal B uh renovations, it's 260 million that's being requested in the solicitation to cover the construction cost for that construction manager at risk.

33:52

You have other ancillary costs that go into soft costs as it relates to the design, the uh 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.

34:08

Thank you for saying that uh councilman uh Councilwoman Gavito with regards to Southwest.

34:13

We've got them all signed.

34:14

We're excited about uh the steps going forward.

34:17

We have two million appropriated for terminal A and 100 appropriated for terminal B.

34:22

That gives us a total amount of 300 million.

34:26

200, not 2 million, 200 million for terminal.

34:29

200 million.

34:30

I'd be a small airport.

34:31

Yeah, that'd be a seat.

34:34

Um thank you for that.

34:35

And then a year ago, I remember the airport was pursuing 95 million, I think, in federal funding for FY2026.

34:42

How much of that has been awarded or um obligated?

34:46

The 10 million gets us to a certain number.

34:48

I don't have that off the top of my head, but uh Elisa or someone.

34:52

It gets us really close, right?

34:54

Uh, as we look at the overall footprint, Jeff Scott.

34:58

Yeah, just reviewing a press release.

35:00

I don't think it's who's a chance to see yet, but I um since 2022, the airport's gotten 188 million in federal grants.

35:08

Um this year, which is what I think you asked about.

35:12

We've still got some very big ones that are out there, particularly a raise grant, which is would be for the roadway um loop project.

35:19

I think that's 25 million we applied.

35:21

So this year is not settled yet, but um at 188 since in the last few years.

35:27

Awesome, thank you.

35:28

And on the um common use um system, I think, council member alluded to this also, but just what does that look like from a passenger's perspective?

35:39

Will they notice any changes how they check in, or is that on the back end?

35:43

Great question.

35:44

We've looked at as you look at our 3D uh virtual reality augmented effort of what we've got.

35:51

I think some of you have been able to experience the Oculus glasses in the way we look at it.

35:55

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.

36:04

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 strategically place those in locations that make it easy for the passenger.

36:15

Um I hate to use this word, but it's historically it's been a band-aid approach.

36:20

Where's the space that's available when we put it there and it works?

36:23

But it may not be good for everyone.

36:25

So those are things that we're very focused on in the design of where we place those strategically to ensure we're not impacting existing footprints, whether it's the counters or the security checkpoint in the portal as you enter into the security area.

36:39

Are there airports of similar sizes ours that have incorporated the customer, I mean some common use system?

36:47

Yes, ma'am.

36:47

Which I would say, you know, you have over close to 350, all the ones in Texas have kiosk.

36:56

Okay.

36:56

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 passengers want to go do their process and go.

37:08

As uh Mayor pointed out earlier, uh, rightfully so.

37:11

You've got the signatory carriers, they have their proprietary equipment that they want to stay on as legacy carriers.

37:16

We allow that to happen.

37:18

This is how we match that for the carriers that don't have the that availability.

37:23

Great.

37:24

Um on the concessions, um, slide nine, you know, talks about the reserving the right to award the multiple packages.

37:32

So I guess what's uh the specific conditions that would have to be in place for the city to feel compelled to do that.

37:41

To not issue it all to one.

37:44

Or to re you're reserving that right.

37:45

What what conditions would be in place for you to do that?

37:48

I think it goes back to the discussion with the mayor.

37:51

I think it she's absolutely correct as it relates to the spirit of competition, right?

37:55

We're gonna look at it and say we want to have a competitive effort here.

38:00

Um they're all great.

38:02

If I uh 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 uh very much as we're doing with all of our commercial efforts and ensure that we give everybody an opportunity and create competition.

38:19

Please, councilwoman, I just um we start from the standpoint that we have four packages here.

38:27

If we wanted to just award one, we'd do one package.

38:30

So the idea and the intent is for us to have multiple teams submit good proposals that create mix and competition in the airport.

38:39

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.

38:53

And because we had put a restriction on ourselves that no firm could get more than one, we ended up taking another nine months to do another solicitation.

39:02

We don't have that time flexibility this point.

39:04

These need to be open when the new terminal is open.

39:07

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.

39:16

Great, thank you.

39:17

And I think just you know, I think a lot of us here and to your point, councilwoman, on hyper-local, you know, participation, um, and the airport seeking to, I think it was a 46% local concept representation.

39:37

I guess how does that work if it's not in the request for proposal?

39:41

It's it's what we are putting in the solicitation to put all of them on notice that this is our expectation, and that will be uh evenly distributed in the way the scoring is finalized to ensure this is our proposal.

39:57

This is what our expectation is as you do business with this city and specifically the airport.

40:02

Our preference is to have 46%.

40:04

We feel like we're gonna 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.

40:20

Um thank you for that.

40:23

Let me see one more.

40:24

I think that's it.

40:25

Well, thank you again for the presentation.

40:27

Uh I look forward to continued updates, and um, I think we're all gonna say the same thing, but you know, this is that first impression, right?

40:34

And I think we all look at airports differently.

40:36

If you work at the city for in the last five years, you probably just when you go to the another airport, you look at it in such a different way now.

40:43

So thank you again for all the work that you guys are doing, and look forward to hearing more um as we go along.

40:48

Thank you.

40:49

Thank you.

40:50

Um Jesus, it came up in my pre-brief, and it it really builds off what the councilwoman just described, and some of my concerns as well.

40:57

When you all provided the example of, hey, we're doing this because we want to avoid some of the mistakes that we lay that not mistakes, but missteps, right, that were made through no fault of anybody.

41:06

But so those things that are in place uh to seek recourse, right?

40:59

If a contract is is not performing, and some of the things that Jeff was kind enough to mention.

41:14

Um, of course, there's always the minimum annual guarantee, right?

41:16

Which you all point out on your slide.

41:18

Um, there's the minimum operating hours, of course, sanctions for performance violations, default provisions, and then refurbishment and reinvestment obligations.

41:27

So, um, in the instance where you talked about the second uh vendor uh or I guess package not performing up to up to par.

41:35

Um, what what steps were taken to uh remediate their performance?

41:39

Um, and are there other kind of specific lessons learned from that experience that are helpful in seeking potential recourse this time around?

41:47

Yeah, a couple of quick answers to that, Mayor.

41:50

One is standardization of what our expectation is in the way that that concessionary is operating, right?

41:58

Uh we have customers that have expectations, they will sp they will clearly make decisions on what airport they travel out of based on our ability to deliver specifically on the concessions.

42:08

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.

42:20

The second piece to that is the before you go before you go on, Jesus.

42:23

Can I clarify something for your when he talked about the previous experience?

42:28

He was talking about a solicitation.

42:30

Therefore, no contract was avoided, I'm sorry, awarded to that party.

42:34

So there was no issue in terms of performing to a contract because the contract was never awarded.

42:39

It was the solicitation that was below par.

42:42

Thank you.

42:42

So I'm speaking specifically though to the performance where it was less than what was expected in that instance.

42:48

How did you address that?

42:49

Thank you.

42:49

Yeah, it is based on the performance of how they're operating to the standards that we're establishing.

42:55

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.

43:04

And we look at those, we look at those monthly.

43:06

We have monthly reports that are generated, and we continue to address those as we're working with them.

43:11

What is our revenue per square foot and how do we increase that for each parcel that's out there?

43:16

Thank you.

43:17

Councilmember Spears.

43:20

Thanks, Mayor.

43:22

Um it's no secret.

43:23

I'm your biggest fan and cheerleader for the airport.

43:27

I love that it's in District 9, and I really appreciate your presentation.

43:31

Congratulations on the $10 million award for the ATP.

43:35

Um that's significant.

43:37

And everyone should take notice that you're continuing to go after those grants and and um it's really smart uh and shows great responsibility.

43:48

I had a couple of questions when on slide four.

43:52

Um, can you point to anything in that comes to mind that had Manhattan Joris stand apart and specifically in those different those areas?

44:04

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.

44:14

We feel like all three were very competitive, and all of them are very well experienced.

44:19

Some of the separation items that we really looked at was the preconstruction plans and the phasing is very important to us as we look at the CMAR process and our ability to deliver.

44:30

We're very happy that we get to tell you Terminal C is on scope on schedule and budget, but if you look at the diligence and the work that was done in order for us to get there, there's a ton of work that was performed.

44:41

So we really took that critical to the way that the respondents uh delivered that.

44:47

Umsa had a very strong design coordination and commitment to our SAT standards in the actual interview.

44:56

They were very specific about our new design standards.

45:00

And that let us know that they read our design manual.

45:04

I tell people all the time if you have a hard time falling asleep, go look at our website.

45:08

There's 11 chapters in there, you'll fall asleep really fast reading that stuff.

45:13

And then more importantly, their commitment to the sense of place of San Antonio.

45:16

As you look at Manhattan, big company uh across the aviation industry, and then you look at their tie to Joris and understanding, you know, what that means to San Antonio, they had a really good sense of place of what that means here.

45:30

And they had a really clear schedule for their ability to deliver on the GMP, right?

45:35

We're gonna do the same thing all over again, and 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 gonna see much difference.

45:50

That's good.

45:51

Um can you can you help us understand?

45:58

I've used the cups at some other of the other airports, but um I think I just happened to cross it.

46:06

Do you know if the non-signatory airlines are pushing are going to be able to push their flyers to use those cups terminal uh kiosks?

46:18

It it is really about coordinating and organizing our communication to the passenger as we talk about the journey.

46:25

So it's our effort and being uh 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.

46:38

So those two come together, and that's what this is about.

46:41

Sometimes, and as I shared earlier, you if when you walk terminal A, it's very easy for you to say, well, where are those common US?

46:49

Well, they're behind some walls and some counters that you can't find because that was the best place we could put them.

46:55

We didn't have a choice, we can't stick them out there in the middle.

46:58

As we looked at terminal C, and as we asked uh for your support on this effort, we're gonna be very specific about the locations and where those go.

47:07

And then as we do the rehabilitation of Termal A and B, we will do that as well.

47:11

And the answer uh, I mean, ultimately, is yes.

47:14

All carriers want to do that, and 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 whole room and get ready for their flight.

47:30

Mike keeps turning on.

47:32

They don't want me to talk today.

47:34

Uh so how is the turnout at the industry day?

47:38

Industry Day.

47:40

Um, I'll ask uh Alisa or uh Tim to come tell me total number of respondents, but it was over a hundred.

47:49

Um we had not only uh participation here locally, not only regionally, but I would say even nationally.

47:57

We had people from different parts of the country to come in and are interested in being a part of this process.

48:03

So we expect it to be very competitive.

48:06

That's good.

48:07

Um I want to echo what my colleagues have said about you know a focus on local.

48:12

I do understand the need for national, especially families traveling, their kids want Chick-fil-A or they want uh raisin canes or something like that that's recognizable, and then um, but you also want to try the natural flavors, which is really important too.

48:30

I uh want to applaud, I also echo the the coffee uh aspect that's important.

48:37

Somehow we've become a leader in different kinds of coffee here in San Antonio.

48:41

But leaning into the food side of things, I think we can equally do that on the retail side.

48:45

I mean, obviously the spurs are gonna be an important piece of that, but there's a lot of things we have retail-wise that I think are opportunities for us.

48:54

And I um I love that we have the Military City USA store.

48:58

That's super smart and also very, very indicative of what we are as a community.

49:03

So that's a great thing that that we did back in March.

49:07

Um I'm noticing how thoughtful every y'all have been.

49:12

I've been up there quite a bit.

49:13

I went to the Toronto inaugural flight, so much attention to detail down to just how you're decorating when they walk in.

49:21

Um, you know, talking talking with April about that, and just I really appreciate the attention to those little details.

49:30

I I noticed that.

49:32

I think others notice it even if it's just subconscious.

49:36

So um integrating our our community and our and our uh our culture and what San Antonio is is really important.

49:45

And then the things that you've been doing where you had the we had the veterans memorial for Sar Staff Sergeant Dayton Povado cut when he's a World War II vet that was MIA and his remains came in and we had a big ceremony.

49:58

That was amazing and moving and should deserve more attention.

50:04

And y'all do things like that all the time.

49:59

So however we can be helpful in bringing attention to those things not all airports are doing that and but we are and I'm very proud of that.

50:16

Um to councilman Mesikonzala's point it's 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 I think you know y'all staying on scope on schedule on budget is excellent.

50:36

I I think y'all are doing a really great job at executing such a big big deal for our city and uh I hope we can continue to message this well as a council and um in our community and assist in any way possible to really get the word out about what we're doing at our airport.

50:58

I think it's it's fantastic um just really proud of it again just your biggest cheerleader.

51:05

So yeah call on us anytime and we're happy to have you come out to anything in district nine to help them understand all the changes going on at at the airport too.

51:15

And I think this the Stone Oak Park and Ryan would be great for using for driving to the airport right?

51:22

Yeah y'all like that.

51:25

Anyway um thanks Jesus y'all are doing a great job.

51:28

Thank you ma'am.

51:29

Thank you.

51:30

Council member Galvan Thank you Mary and thank you Hasus and to the team for always the incredible work y'all do uh with the airport I always have a lot of confidence in you all uh and continue to see that in the presentations and of course in the delivery y'all have on the uh program the work that you do um a couple quick questions I mean I feel very comfortable um but the vast majority of this I think the one thing I was gonna ask related to the uh concessions concessions portion um let's talk about local right of course the big focus for myself as well one thing with that I guess was uh remind me for the concessions themselves are you the revenue that we collect through that for the airport fund I don't know if it's operational or capital that we get it for but it whichever one it is is it through primarily through sales um or through ground leases um for the concession stands or for the vendors as it relates to the revenue that we receive from the concessions it's based on the percentage of their revenues that comes back to the airport okay so nothing goes into our non-aeronautical uh revenues got it okay yeah good to know because I was wondering I guess how if there was the leasing proportion if there was any kind of connection there but if it's primarily through sales good to know.

52:38

Okay.

52:39

Um and then beyond that I guess what's the what's the procurement or application process like for um for businesses or for vendors to be uh to have their concessions there.

52:51

Yeah 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 um we try and get it out as much as we can in social media in the work that we're doing um I think we uh 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 um we actually move industry day a couple of times to make certain we captured um we had to move it three times because of the size of the venue uh to the question earlier um we were looking at 50 to 60 and then it got to 80 to 90 and then it was over a hundred that wanted to be there so we had to move three times so um we're excited about the people that are in uh 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 uh on a sole uh respondent or if you want to get connected with a national concessionaire we provide that information to them as well so that they can work and we're I give a lot of credit to the team that's behind me.

54:00

I mean, they're getting after it to make uncertain, we're answering the mail, we're answering text, we're answering phones that are saying, How do I get connected in this process?

54:08

Because once we get into the solicitation piece, we're gonna have to be quiet.

54:13

That's great.

54:13

We're glad to hear that.

54:14

I mean, I think the technical assistance in some form is really helpful for folks who you know don't normally uh apply to be a not only a concession or be part of the concession to be a vendor, but generally as a vendor with the entire city in any form, right?

54:24

And so I think that's really helpful to see uh that's what y'all do.

54:28

Um one other question I had uh kind of going back a little bit to the the revenue portion for this.

54:33

Um how much uh I guess proportionally, how much do we do the airport receive uh from salesman concessions um compared to tickets or flights um for their the operational fund?

54:45

Yeah, it's broken down into aeronautical and non-aeronautical revenues.

54:49

Um we can give you that breakdown.

54:51

I'll provide that to you, council member.

54:52

Okay, I don't have that readily.

54:54

Alisa may have that in the here in a few minutes.

54:59

35 million.

55:00

And then percentage, what is that proportionally for the entire budget?

55:05

The breakdown.

55:08

Yeah, so you're looking at about a 50-50 split.

55:12

Overall, we get 75 and 35 is coming from non-aeronautical revenues.

55:16

Got it.

55:16

Okay, thank you.

55:17

Okay, I think those are uh all my major questions, so thank you so much.

55:20

Oh, and I really appreciate the portion on the street pricing or the closest to that as well.

55:24

Of course, trying to make it as portal as possible is really crucial there.

55:26

But of course, to your point, external factors can come in there.

55:29

Um so thank you for that.

55:30

Yes, sir.

55:30

Thank you.

55:31

Thank you, Mayor.

55:31

Thank you, Councilmember Corps.

55:37

Thank you, Mayor.

55:37

Thank you, Hesis, for this presentation.

55:39

Can you remind me who got the CMAR for Terminal C terminal C construction manager at risk was Hansel Phelps?

55:46

Okay.

55:47

Um did they apply for this as well?

55:51

Uh they did not.

55:53

And we we wanted a separate contractor because or separate entity, I guess, because we wanted I'm I'm just wondering like with two different entities who are aligning to make sure I know they're just gonna build based on the drawings, but didn't want like you know different tiles being picked and things like that.

56:10

Yeah, each each solicitation is different.

56:12

You look at I tried to make that reference earlier.

56:15

You look at terminal C and the footprint going into a brown field.

56:19

I'm going in, uh I don't have any issues with what we call MEP mechanical electrical plumbing, where you're gonna drop concrete, how you're gonna do that work.

56:27

You can get after it quickly and make those things happen, and that's what we looked at.

56:31

As you look at this one, we're gonna have to close down gates, we're gonna have to move areas, we're gonna move uh security checkpoints, we're gonna refurbish all of the restrooms, we're gonna refurbish all of the hold rooms.

56:43

It's tedious.

56:44

It's gonna be tough as we go through this process.

56:47

So those are the things we're gonna be looking at in the construction manager to work closely based on the design that we the design criteria we give them.

56:55

Um for this uh this combination, how did you give them historical like previous experience points?

57:02

Because technically this is a new joint venture, they don't as an entity have history.

57:08

Yeah, I mean, the best place I can give it to you is on the teams that were assembled and who specifically has done you know renovation uh rehab projects inside terminals uh where you're doing a full re-renovation project.

57:25

And I will just share with you in some of the ones that were not awarded, we had some individuals that were gonna be PMs that have never worked in aviation.

57:34

It's not gonna work.

57:35

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.

57:43

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.

57:51

Yeah.

57:52

Um, okay, 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 and B regardless of which airport you land at, so or which terminal you land at.

58:05

And I know you're on the same page, so I'm hoping that makes it into the design.

58:09

Um, and then uh continuing to focus on security, making sure we remain the second.

58:14

I had no idea that the first, the shortest according to that study was BWI, which I'm like, I have been through BWI.

58:20

That cannot be true.

58:21

We really we're so much faster, but we've got to remain faster.

58:24

And I go back to Eric's idea of a sign on and San Marcos saying 40 minutes to your gate uh at SAT, but um just want to reiterate this.

58:33

Time I've heard that in two days.

58:35

I'm telling you, people would come here versus Austin because I've gotten stuck, right?

58:40

So anywho, um, and then for the pre-solitiz p pre-solicitation, this is my fun stuff.

58:46

Where remind me where did 46% come from?

58:50

For that.

58:51

Yeah, as we looked at the square footage that we have available in total square footage.

58:56

Right.

58:57

And how can we distribute that?

58:59

It's the number that we got to.

59:00

We know that in the previous one, you all said at least 40.

59:04

Um, we had a very large percentage in the previous one.

58:59

So we think they're gonna outperform that just because of the number of people that are interested in being a participatory, we'll figure out that balance as we go through the process.

59:15

That's what I was thinking when Councilman Alder Decovito mentioned that point that we had set this bar in pre-c solicitation last time, and then our vendors know that that's what we care about.

59:24

So they um brought us majority local concepts.

59:28

I I came back from a conference today and I saw Felice Modern open and beautiful, and um the temporary bar that Chef Johnny had is packed, so I mean it seems like TermoBe is doing great and getting up and ready.

59:40

Um, so uh just because some of the folks are here, the things that I wanted to comment on is like we have a great bookstore in district one with Twig, so I know local bookstore was on there.

59:50

And when you look at other airports, I feel like the one place that we really struggle for local food concepts is within the Asian food realm.

59:59

You always see Asian food being like the food chains, and so if we can, Chef Sue Kim has two amazing restaurants with Golden Goose being right here.

1:00:07

Um, and if we can bring uh, and there are many others, so if we could bring a local Asian concept, I think that would be really awesome.

1:00:15

Um, and then my staff wanted me to say other district one favorites are Tequito's West Avenue and Cabo Bob's, and they love those as well.

1:00:24

Um, and then lastly, just on the retail component, I felt like you're doing a great job with FB because I think our F B folks know we want uh to have more local uh uh restaurant tours and chefs be a part of that.

1:00:37

The place that I feel like we could do a little bit more is with our retail, and that is a huge package, it's this massive one.

1:00:44

So did I catch that you're saying that the uh duty-free is gonna be on its own, or is it going to be included in that package?

1:00:50

Duty free will be its own package.

1:00:52

Okay, okay.

1:00:53

And and duty free is duty free, but for the rest of them, if there's a way, whoever whoever is bidding on that to make sure that we know where we want more local concepts for retail as well.

1:01:03

Like it's super cool to see Felice Modern and all of our like what we think our crafts are that we want to be able to sell and share versus like generic, you know, luggage stores.

1:01:14

So I don't know that we have a local luggage brand that'd be big enough to be able to go into the airport.

1:01:19

That's the one challenge that I remembered from the last conversation.

1:01:22

Um, is that we 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.

1:01:33

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.

1:01:42

The only last request I had was last time.

1:01:45

I feel like there was a food tasting, and I know Jeff got to attend this food tasting, and I would like to volunteer as tribute to be able to attend the food tasting as well.

1:01:55

Thanks, Cesus, for everything that you do.

1:01:57

Thank you.

1:01:58

Great, thank you.

1:01:59

Councilmember Vieckeran.

1:02:03

Uh, I want to thank the aviation team for all their hard work and their vision for the airport as well as the investment uh made at Stenson Airport, because we do have two airports here in San Antonio.

1:02:12

Need to remind everybody of that.

1:02:14

Um 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.

1:02:33

And as uh Councilwoman Corps mentioned, we should be the place that they go instead of heading up 35 to another city.

1:02:41

Um, so let's just stick with that.

1:02:44

I I did want to um comment because I felt like there was some confusion around the other contract, and I know some of the council members weren't here.

1:02:53

Um we self-imposed that, um, thinking we were going to get the top concessioners to come and ask for a whole lot more local.

1:03:06

Some of them did not, and that is why we had one uh top concessioner, global concession group that went out and really did take our uh top-notch um food and beverage people and made them part of it.

1:03:24

So I think we need to remember that that this was not um, this was something that we had we knew or you knew, Jesus, because of your experience.

1:03:29

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 chain.

1:03:43

So I think that message was communicated clearly in the last round.

1:03:47

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 uh communities and try and get them on board because as you mentioned before, moving into the cost to move into an airport airport, the um the ability to staff that airport is very um is is very expensive.

1:04:15

It's very expensive.

1:04:16

And I do want to applaud uh 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.

1:04:28

So I want to make sure that as we move forward, we uh communicate those, especially those who want to come just singular, that it, you know, we need those, we can't have you close down very often.

1:04:44

We need you operational, especially during this summer season, which is hopefully going to be a busy season.

1:04:50

So um, you know, I think last time I know Hudson Group and is it Dufry uh have merged, so they'll be different, though they're a different group now, or they're a merged group, uh, as a global concessionaire is Hudson still on its own?

1:05:06

Uh Hudson and host have joint partner, okay.

1:05:09

Yeah, I know I it's gonna be like uh it's gonna be very interesting this time around.

1:05:13

So uh I look forward to that as we move forward and we take into consideration what that I think the committee is gonna have a lot of work to do.

1:05:22

My concern is the foot traffic, making sure we do have that connection for A and B just to make sure that all the concessions in there do get that, um, get that patronage.

1:05:34

And again, as I talked before, getting that last dollar or five dollars uh and having the different price points.

1:05:42

Um we are working at EWDC on a San Antonio store and looking what we where we can provide uh some of our merchandise there, if not, you know, having them order so that they can take something that really does uh create that sense of place that they're there in San Antonio, and I think that would help with our sales tax revenue too.

1:06:06

So I want to make sure that we see that uh happen.

1:06:10

Um so I think I'm very proud of the work that we've done so far.

1:06:16

I think, you know, in terms I want to stick with concessions because I can go on and on about connections, but we're talking about concessions.

1:06:23

I think what now we need to do is as important is making sure that as the foreseeable future, what we're looking at in terms of possible delays, possible cancellations, um, you know, spending a little more time, getting there a little earlier than anticipated because of possible delays in uh TSA lines, that we make sure we have the concession options for our travelers that are going through, which includes that you know, adventure single traveler or business traveler and the families.

1:07:02

So just making sure that we kind of keep an eye on that as we move forward because I know um most recently when I went up to DC, I was there for a lot longer than I anticipated because I wanted to make sure I didn't miss my flight.

1:07:17

Uh, and so um that means like I had lunch and then I had a coffee and then I shopped, so making sure we had those options for our uh our visitors and the travelers.

1:07:29

So thank you.

1:07:30

Uh, that that's pretty much all I have.

1:07:32

Um, I do want to uh if if we could just provide for the rest of the council that meeting, Jeff, uh the meetings that we had regarding when we self-imposed and how poorly the food was for the F and B concessions.

1:07:48

I think that was um was it two years ago?

1:07:54

Okay, yeah.

1:07:54

Yeah, let's just get those meeting dates out there to make sure people understand what what our reference point is when we're talking about that.

1:08:00

Thank you.

1:08:01

Councilman, if I could just make one comment, because um I haven't read the number, but I do know that with our partnership with TechSot and FAA, we were also just recently awarded a grant for Stinson.

1:08:14

So we remain committed and focused to Stinson as well and everything we're doing on the South Side to continue to grow in our partnerships that we have in the South.

1:08:21

Thank you.

1:08:21

And with the four minutes I have left, I am going to invite you all to go down to Stenson.

1:08:27

It is just it's an it's an amazing venue.

1:08:30

Uh just we have the old yeller there.

1:08:35

If y'all need uh a ride up in a very old plane, we can get that for your team.

1:08:40

So it it is a great uh airport, and every time I look in, I'm like, do you have this space available?

1:08:45

We're we're running out of space there for uh the amount of vendors we have.

1:08:49

So thank you.

1:08:50

That's great.

1:08:50

I'm so excited to hear that.

1:08:52

Thank you, Mayor.

1:08:53

Yes.

1:08:53

Thank you, Councilmember Mungia.

1:08:57

Thank you, Mayor.

1:08:59

Um local, local, local.

1:09:01

If you heard it once you heard a thousand times up here, so I just want to reiterate that.

1:09:05

Um, and can you actually I had a quick question?

1:09:07

Could you explain a little bit more the difference what the difference is between duty free and duty paid is?

1:09:13

I'm not quite an airport nerd like Councilman Corps is.

1:09:17

Uh so if you can explain that to me, please.

1:09:20

As it relates to duty free and duty paid, uh we have a subject matter expert.

1:09:26

I'm gonna ask Ann to come up here and talk about that.

1:09:28

Anne's been working with us as we've been looking at this specifically.

1:09:32

Uh, she has over 25 years of experience in the work that we've put together, so I'll ask her to come up here and speak about that.

1:09:41

Good afternoon, happy to answer that question.

1:09:44

So, duty uh, anybody can shop at the duty free, duty paid store.

1:09:50

Uh the only things that are actually duty paid are the alcohol and tobacco.

1:09:57

Those are those are the things that only the international outbound passengers can buy.

1:10:03

But any of your other passengers can buy the fragrances, the cosmetics, the confectioner, and so this the duty free actually acts kind of like a little department store because it has a lot of different products in it, and most of your passengers will be able to shop there, because they paid a tax.

1:10:27

Yes, okay, and lots of times the operator actually absorbs that.

1:10:33

Okay, and uh I wasn't aware.

1:10:35

So people are able to buy tobacco products at the airport.

1:10:38

I'm sorry?

1:10:39

Are people able to buy tobacco products at the airport?

1:10:42

Yes.

1:10:43

If they are out outbound, um international travelers.

1:10:47

Alcohol and tobacco.

1:10:49

Okay.

1:10:49

And are you able to access those stores generally, and then you're told you can only buy something if you're out going internationally, or do you is the access to that store you have to show that you're traveling internationally?

1:11:02

No, you anyone can go in and buy except for alcohol and tobacco.

1:11:07

And in that case, you would have to show that you were uh traveling internationally.

1:11:12

Okay, great.

1:11:14

Um, so that's RFP is gonna include both types.

1:11:19

Yeah, it'll be it'll be one operation, one um concession error, but it will include both aspects of the sales.

1:11:28

Okay, great.

1:11:29

Thank you for that explanation.

1:11:30

Appreciate it.

1:11:31

Uh the only other question I had was and maybe you highlighted this a little earlier, but are there any major differences to the Terminal C concession RFP from the last one?

1:11:44

Um I think the mixture is still food and beverage and retail.

1:11:49

Uh the only thing that I would tell you that we do have differently is the addition of a duty-free uh concessionary.

1:11:57

Uh but predominantly overall, um we've we've tried to look at the overall uh square footage and specific parcels.

1:12:05

It's what we've been working on with Ann 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 gonna have in this new um solicitation.

1:12:22

And Councilman, just generally, the revenue per square foot we're expecting is more, the local percentage is more.

1:12:28

So we've we've upped those aspects of the solicitation.

1:12:32

Okay, great.

1:12:33

That's what I was asking.

1:12:37

I guess that's more or less the same.

1:12:40

Okay, great.

1:12:41

Awesome.

1:12:41

Well, great job.

1:12:42

Looking forward to it.

1:12:43

Thank you.

1:12:43

Thank you.

1:12:46

Thank you.

1:12:46

Um any other comments or questions on this?

1:12:49

Okay.

1:12:52

Um as has been alluded to, when you go to other airports, it really kind of makes you think about things that you'd like to see your own.

1:12:58

One of the things that I'm always struck by in other airports is their incorporation of local art and highlighting things like our great resource, San Antonio Museum of Art, et cetera, et cetera.

1:13:06

So really um, you know, making sure that we're being as thoughtful about a percentage of our advertisements.

1:13:12

Um every time I see the beer, beer producer welcoming me back.

1:13:18

I wish it was frankly uh something else, right?

1:13:20

Because that means somebody else is also seeing that for the first time when they come into our community.

1:13:24

So a little bit um how we can be thoughtful about incorporating some of the local gems that we have would be great.

1:13:31

I see it's also in terminal A and Terminal B already.

1:13:34

Um how though, and maybe they this is already something y'all have addressed, but uh the Mama VAP uh pods, rather, which is our our lactation pods, do they have to bid again or do they already have a space in Terminal C dedicated for an additional pod?

1:13:50

Yeah, we've been very specific.

1:13:51

I'm gonna ask Tim O'Crongly to come up and talk about that as he's been very involved with all the design work that we're doing in Terminal C so you can uh share his thoughts about that, Mayor.

1:14:02

Tim O'Connell, deputy director.

1:14:04

What Terminal C has allowed us to do, and we'll do in the renovations of A and B, instead of having some of those pods, we'll have dedicated rooms for that, and we design that in.

1:14:12

We spent a lot of time working with accessibility is one of the key focuses.

1:14:16

And uh we'll have the designated rooms for that along with uh other amenities uh addressing accessibility.

1:14:23

You're gonna see things that we'll probably be some of the first airports or the first airport to design in.

1:14:30

Uh for example, uh, our accessibility working committee.

1:14:34

Uh we had over 166 suggestions that came in, and we're implementing a lot of those.

1:14:39

Those were brought in early in the design, but specific to that one, there'll be dedicated rooms so we don't need a pod outside.

1:14:45

When we do the renovations, the terminal A and B, we'll look to do those same design standards in the uh design.

1:14:51

Okay, but that access will be um across the three terminals, right?

1:14:56

You're not consolidating it into one.

1:14:58

Absolutely.

1:14:58

You'll probably see more.

1:15:00

Sounds good.

1:15:00

Thank you.

1:15:00

I appreciate that.

1:15:03

Um, Jesus, um, are we still the only medium-sized uh medium hub, whatever the correct term is, um, in the top ten major cities?

1:15:14

Are we the only medium?

1:15:16

We're the medium-sized hub.

1:15:18

Yeah, so uh Dallas Fort Worth, uh, George Bush Intercontinental, and Austin are all large hubs.

1:15:24

Dallas Love and William P.

1:15:26

Hobby are medium hubs, and so is San Antonio.

1:15:29

So we're the three.

1:15:30

Okay.

1:15:31

How do we um how does that inform our approach about identifying this opportunity for folks?

1:15:38

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?

1:15:47

And how do you talk about it?

1:15:48

Yeah, I think there is as it relates to the amount of footprint, and if you're you're speaking specifically, councilwoman, to the concession solicitation.

1:15:59

I'm sorry, mayor.

1:16:00

Um we're talking specifically to the solicitation of the concessions.

1:16:05

Yes.

1:16:06

Yeah, so it's 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.

1:16:16

Because yes, the large concessionaires, and there's some in the room, they're focused on the big airports because that's where the big money is at.

1:16:24

We've got to make certain that we crawl in there and make sure certain that they're interested in ours as well.

1:16:30

Got it.

1:16:30

Okay, appreciate that.

1:16:31

Thanks for the clarification.

1:16:34

Great.

1:16:34

Um, well, you've heard lots of support uh for um 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.

1:16:44

And um yeah, do appreciate you know the the historical documents, Jeff, um, and and making sure that we're adequately lesson learning from all those lessons learned.

1:16:51

As you pointed out.

1:16:52

We don't uh in my brief, as you mentioned, you know, somebody some some vendor from Chicago warming up food is in our airport, is not what we want, right?

1:17:00

So how do we appropriately uh account for that in our in our contracts and enforce those?

1:16:59

All right, thank you.

1:17:04

Thanks, Jesus.

1:17:06

The time is now 321 and this meeting is adjourned.

Discussion Breakdown — Share of Meeting
Infrastructure████████████████████████████████████████40%
Procurement and Contracting███████████████████████████████████35%
Economic Development███████████████████████23%
Community Engagement██2%
Summary of Proceedings

San Antonio B Session Briefing on Airport Contracts - May 20, 2026

On Wednesday, May 20, 2026, the San Antonio City Council B Session convened at 2:04 PM to receive briefings on three high-profile airport solicitations: the Construction Manager at Risk (CMAR) for Terminal A and B renovations, the common use passenger processing system, and the concessions program for the new Terminal C. The meeting included updates on federal grant awards, airline agreements, and council member priorities for local business participation and passenger experience.

Consent Calendar

  • No consent calendar items were discussed.

Public Comments & Testimony

  • No public comments or testimony were provided.

Discussion Items

Construction Manager at Risk (CMAR) for Terminal A & B Renovations (Post-Solicitation)

  • The solicitation used a two-step process (RFQ then RFP). Four respondents submitted qualifications in late 2025; three were shortlisted. After scoring, Manhattan and Joers (joint venture) was recommended as the top firm, followed by Skanska USA and Austin Commercial.
  • Manhattan Joers scored highest due to their pre-construction plans, phasing approach, strong design coordination with SAT standards, commitment to San Antonio's sense of place, and a clear schedule for delivering the Guaranteed Maximum Price (GMP).
  • The contract amount is $260 million, funded from aviation capital funds (airport revenues). The total project cost including soft costs is $300 million, per the airline agreement.
  • Councilmember Aldrete Gavito asked about construction start timing. Staff responded that design work will begin after notice to proceed, with 10% design expected by mid-2027, 90% design by 2028, and construction starting after Terminal C beneficial occupancy (to avoid overlap).
  • Councilmember Mesa Gonzalez asked about funding sources. Staff noted $200 million for Terminal A and $100 million for Terminal B, totaling $300 million.
  • Councilmember Kuss asked why Terminal C's CMAR (Hensel Phelps) did not apply. Staff explained that the renovation of A and B (closing gates, moving checkpoints, refurbishing hold rooms) requires different expertise than building on a brownfield.
  • Mayor clarified there are no local preference points for this federal contract.

Common Use Passenger Processing System (Pre-Solicitation)

  • This system provides non-signatory airlines (and any airline choosing to participate) with passenger check-in kiosks, improving speed of service.
  • Estimated contract value: $12 million. Term: five years with two one-year options. Funding from O&M account.
  • Evaluation criteria: 50 points for proposed plan (60-day turnkey operation), 35 points for experience/qualifications, 15 points for pricing.
  • Evaluation committee includes city staff, ITSD, and a representative from Miami-Dade International Airport.
  • Schedule: Solicitation release May 29 (subject to council approval), proposals due July, evaluation August-September, post-solicitation briefing October-November.
  • Councilmember Mesa Gonzalez asked about passenger experience. Staff said kiosks will be strategically placed in renovated A and B to avoid the current 'band-aid' approach.
  • Councilmember Spears asked if non-signatory airlines will push passengers to use kiosks. Staff said yes, coordinating with carriers and focusing on passenger journey.

Terminal C Concessions Program (Pre-Solicitation)

  • Total concessions footprint: ~35,000-36,000 square feet. Four packages: Package 1 – retail (11,000 sq ft), Package 2 – duty free (1,700 sq ft), Packages 3 & 4 – food and beverage (including sit-down dining, coffee, bars, food hall).
  • Term: 12 years (selected based on industry feedback). First-year minimum annual guarantee: $8.6 million.
  • Evaluation criteria: experience/qualifications (10 points), design/capital investment, operations/sustainability, concepts/brands, organizational management, financial projections (20 points).
  • Local participation: 46% target for concept representation. Staff noted strong local interest (over 100 attendees at industry day). Previous packages achieved 70% local participation.
  • Staff emphasized the city will strive to award multiple contracts to multiple respondents, but reserves the right to award multiple packages to a single respondent (to avoid solicitation delays as happened previously).
  • Councilmember Aldrete Gavito strongly advocated for local businesses, especially coffee shops (e.g., Oyo, Mila) and retailers. Staff acknowledged the need for balance with national brands.
  • Councilmember Mungia asked about differences from the previous Terminal C concessions RFP. Staff cited higher revenue per square foot, higher local percentage target, and a separate duty-free package.
  • Mayor raised concern about contract enforcement (e.g., if a concessionaire underperforms). Staff described monthly revenue and performance reviews, standardized operating standards, and recourse provisions (minimum operating hours, sanctions, default provisions).
  • Councilmember Viagran referenced other airports' connections and urged continued focus on passenger experience, including price points and vendor reliability.
  • Councilmember Kuss advocated for a connector behind security between A and B to allow passengers to access all concessions regardless of terminal.
  • Councilmember Viagran highlighted the need for price points for different travelers (families, business) and noted that global concessionaires must partner with local businesses.

Key Outcomes

  • The council received the post-solicitation briefing for the CMAR (Manhattan Joers joint venture) and pre-solicitation briefings for the common use system and concessions program. No formal votes were taken.
  • Council members expressed strong support for local business participation (target 46% concept representation) and urged staff to maintain competition among concessionaires.
  • Staff noted that Terminal C remains on scope, schedule, and budget. The airport was awarded an additional $10 million from the FAA Airport Terminal Program (largest of any medium hub in the country for this round), bringing total federal grants since 2022 to $188 million. Additional grants (e.g., RAISE for roadway loop) are pending.
  • Staff committed to providing historical documentation of the previous concessions solicitation to council members.
  • Next steps: The common use system solicitation is expected to be released May 29 (with council approval). The concessions RFP is expected in June, with proposals due in September, evaluation October-November, and post-solicitation briefing late 2026 or early January 2027.

Meeting adjourned at 3:21 PM.

Meeting Transcript

Good afternoon. The time is now two or four PM on Wednesday, May 20th, and the City of San Antonio B session is called to order. Madam Clerk, please call roll. Councilmember for. Councilmember Mickey Rodriguez. Councilmember Villa Conan. Councilmember Mungia. Councilmember Castillo. Councilmember Galvan. Present. Councilmember Aldereta Gabito. Councilmember Mesa Gonzalez. Council Member Spears. Councilmember White. Mayor Jones. Here. Mayor, we have quorum. Great. Thank you, Madam Clerk. So this meeting is a briefing on several high profile airport contracts. So we look forward to the discussion. Jeff, over to you. Mayor, thank you. Uh Mayor and Council. Eric is uh doing an employee event right now, so I'm gonna sit in for him uh until get he gets here. Uh today we have three solicitations related to the airport, as you mentioned, all large high-profile contracts. Uh, 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 uh us launching our concessions process for selecting restaurants, bars, and retailers for the new terminal. Um Jesus is going to get to those before I turn it over to Jesus. I just want to announce uh some good news that we just received, which is the airport uh has been awarded another ten million dollars for the terminal program. This is from the airport terminal program. Kudos to the team and the relationships they have built with the FAA. This is um another 10 million dollars towards the development of the new terminal. Uh 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 dollars in this round is the largest of any medium hub in the country. So we're all very excited. Helps uh helps us build what we're all dreaming and excited about out there. So with that, I'll turn it over to you, I see. Good afternoon, mayor and council. Uh glad to be here with you today, as mentioned. Um as we look at the slide. Today's briefing is over three specific high profile solicitations. Um, 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. Um, from our perspective, the first one is a post-solicitation on the overall efforts with regards to the construction manager at risk for what we call taber, terminal A and Terminal B renovations and the rehabilitation of terminal A and Terminal B. As you look at the dates of when it was released on uh a two-step process as it relates to the request for qualifications that then led to the request for proposals. Um earlier uh this year uh 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 pre-solicitation process. So the dates are there. Um, as we went through the qualifications, we had four respondents into the overall process.

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