City of Laredo, Texas Airport Advisory Board, 13 Jul 2022

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From YouTube: Airport Advisory Board Meeting, 07/13/2022

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Airport Advisory Board Meeting, 07/13/2022

A

B

C

Vice chair, robert judd, gilpin.

C

Virtually uh mr john gaylo brother, mr paul banavides, not president and miss eleague, is not present.

D

Is the judge, sick or.

C

We do have a courage.

D

A

All right, okay, um the minutes the minutes have been already disseminated. Has anybody had a chance to review it or I'll? Give you a couple of minutes to review it and after that I'll take a motion.

E

There's there's eight: there were eight board members present, but there's on the actions on the boards there's only seven. So I think that needs.

C

To be corrected, there is eight.

F

Members present.

C

In total, mr, the chairman arrived a little late. So that's why I'm saying that there's eight members.

B

C

But when we're taking those votes, he wasn't there so there's seven goals.

E

Okay on all of them.

C

Yes, he got here after the action. Okay,.

A

Does that count as the national premieres that kind of need him to make the votes.

C

I will follow up with city secretary.

E

G

I don't, I don't think it counts as a.

H

You're here yeah.

G

You work here so you can.

H

Step out on the vote.

A

E

Make a motion to approve.

G

Moving on to the um passenger activity report.

G

The trend continues upwards compared to prior gears.

G

You see uh compared to last year we have a 55 increase and compared to 20 20 20 to 122, but obviously 2020 is a bad year to compare because of all the problems and all the stoppage so um pretty much uh that deplanement and employment now are are almost in line uh well before they weren't the employment, with the deployments, as you see, on the 20 2020 2020 and the 21 versus the 21 numbers are are quite different, but now you see are pretty much in line people living in the radar coming back to laredo and so forth.

G

um Moving on to the.

H

Last year,.

G

On the 20th, that's that's where we were. We were hit hard with that. I don't know so what.

H

Are you comparing to the numbers.

G

No 21 with 21, 22 and 21 we're comparing right now. I understand I'm just saying.

H

So, where the pre-coded numbers.

B

In january, 20th, 2020 20.

E

H

So so pre-code are you looking at pre-code.

G

That will be no it's not on here. Yeah he's not here so back to.

H

Pre-Comment numbers.

G

uh We we can add them. I mean we usually have uh it's been the past practice that we we only have those two years here. No.

E

But are we about to are.

G

We back to, if you look.

I

At it, you don't have to present.

E

It here, but if you look at it, I would back up.

H

E

G

Yes, yes, we are we're doing a little bit better.

A

The consideration is, I mean it's not posted on here. I know it's just soft memory. Yeah are we ahead? Are we lower.

G

uh We're we're a little bit ahead of it yeah, and uh I can attribute that to the migrants pretty much the migrants numbers, okay, that we didn't have those big numbers prior to kovit, that we have right now.

H

They're considered on this side, even though they're well, I guess it's just the airport yeah there we go.

A

That's just what they out, how about inbound.

G

The next slide will be the cargo activity report, uh as you can see in cargo. Also, uh I mean where these numbers are going up, also 54 increase prior to compared to 21.. These numbers were not impacted by kovit. uh We had a good years on on 21 year. 20 was also a good number compared to 19, and the year before has been increasing repeatedly. So cargo has always been.

G

The trend has been upwards repeatedly every year, so we hope to continue that growth dhl recently approached us that they're gonna start flying back uh with a couple of flights to from laredo to laredo in florida and now to laredo, so that will only increase the numbers here.

G

Our main ones are still fedex and ups, so hopefully we can. We can add dhl to those big numbers here.

G

Moving on the next one will be the fis operations on the fis. If you go to total the air cargo, the total cargo, uh the numbers are still slightly up from 2021.

G

Way better than 2020., obviously fis. The numbers are not what what we would like it to be, but um but there's still a little bit increase them from last year.

G

Still we have support from the mexican government and uh the operations from manam, as you can see, they're steady at 14, which are very low for the month. um We continue to have meetings with the mexican government they're on board with the project.

G

The last project was with ups, a pilot program that for ups for flights to guadalajara, but tsa was requiring some some additional measures for uh security, so after that uh uh additional measures for security purposes and after that uh ups decided to not go more with the with that pilot program.

G

So now we're back to square one right now with that uh pilot program, so um pretty much the program, it's right now on standstill, so we're pretty much uh looking for more another for another company to uh to jump on board because uh it is not to its full potential.

A

Taking consideration, this is a limited program that only select you have to be approved to get in this program.

G

J

Are we targeting those that advertise.

A

In the center kind of move that, because I know we're trying to get more outreach, but we can't because they have to qualify on top of that type of merchandise, are we reaching out to the gm's? Are we reaching out to the electronic, the ibm's and so forth, etc, say? Hey? We have this program available. Can you guys take advantage of that, especially the just-in-time shipments.

G

Yeah, I mean I mean we try and especially with the brokerage uh firms here, the rewarding agencies here that they want to participate. So it's it's, it's very limited and.

F

Limited to certain commodities.

A

Yeah five like five commodities, and then they have to be approved as a company as well. So, yes, and with that being said, we should just target the approved companies right now. Correct. Okay, only 14. come on, I mean yeah. The expenses outweigh the the profits on this transform.

F

What is needed to expand this? This.

A

Mexican government they have to and the thing about it, we're looking at e-commerce and I think it's a huge opportunity, but the fact is we got to get um cooperation with that now.

B

A

That they can work together with that, but.

G

If they're not going to expand.

A

We're limited to those five commodities.

G

And they on board right now and um is on board for the meetings I have with them, they're pretty much on board. They want to expand it to uh open up to more airports, including in mexico, to open it up, because right.

I

G

It's seven airports, so they want to open it up for more airports and more industries. uh Well right now they wanted to start this pilot program, uh but I mean it was very unfortunate that uh ups just decided not to go through with it. So right now we're back to square one.

A

Yeah, I know how aggressive fedex is right now, because I'm in a lot of meetings with them, when I go to dc, can we approach something consideration? It has to be really one of the bigger guys I'll.

G

Work on the to follow up with fedex. I know it was upx the one, the one that was approached on this one and.

A

I know when I brought that up to a couple of meetings on the national level. They said they said well. Why weren't we invited I know fedex would be willing to jump on a situation.

G

Yeah and they'd- and I was also trying to approach dhl, because I saw some a couple of our news articles that they were trying to uh to expand their fleet or trying to buy more planes and trying to expand here in united states. So I open up more uh more offices and and just basically expand everywhere, so I was going to approach them also, but uh you know don't follow up on fedex on that end.

G

So moving on on the air charter, taxi passenger and the private uh passengers, um uh as you see, the the numbers uh uh have been decreased from last year we have a total of 1576 compared to 2551 from last year.

G

This is just basically just uh private citizens. um I mean really just private people decided not deciding to fly here anymore. I mean the numbers are lower than last year and I don't have any any really explanation to that, because people not deciding to come here anymore in the private jets. Moving on on the fis operations.

G

On the on the total uh total operations um for this year is 5327 compared to the 5840. From last year I mean the operations are basically more more or less the same as last year, uh still kind of low to the for the volume that we could be managing overall.

G

Overall, as as you can see, on the bottom on the anam operations, the total operations from the enamel are very low, which comes back to what they can be doing and how we can promote the enamel operations, and we need to be working on that. We shall be doing that. Moving on on the fuel flow report, we keep, uh as we've mentioned on the cargo we've been seeing a lot of increase on the cargo and also on the on the uh commercial planes.

G

um There's a lot of a lot of movement there on the cargo, so that that can be attributed to the more fuel, an increase of 19 19 percent compared to last year, and obviously that translates to to more revenue to the airport.

G

The chair that we get almost 220 000 more that we're getting more revenue.

G

G

G

Moving on on the delinquent report, jet solutions they keep paying but uh they're not up to date. uh The same applies for for net jets. uh They pay but they're, just not uh up to date, I mean we keep sending the reminders.

G

The only one is skyway which they are way overdue. I think it's more than a couple of a couple of years, so I'm assuming these guys are not gonna pay us anymore.

E

Are they still.

G

They're not flying they're.

E

Not I was gonna say: oh yeah they're, not.

I

Landing they're not operating.

D

They don't have any equipment.

G

No, they just landed here a couple of years ago, we built.

I

B

G

Built them- and they just never landed back here. So um at this point I guess uh I mean we keep send, building them and send them default letters. But uh at this point.

G

Well, we don't know, have.

E

H

Shut down, you know they're flying anywhere.

G

uh If they're they're not out there, we'll just uh write it off our books, so.

H

What, since I'm new, I'm sorry yeah? What are these fees, the.

G

Landing page, the landing.

H

Fees, they don't pay at that time.

G

uh When they land they're, uh we send them a build afterwards.

G

So it all depends on the weight of the plane, we're working on uh on a on a software that uh that will automatically catch them on the on the on the number, the tail number so we'll automatically build them and have that, uh but where you're building I mean like net jets, some surprise, you know.

H

I

There's one there's an.

E

Updated that's kind of dated.

G

E

I don't know if you got a copy.

C

It should be behind everybody's partners.

G

Yeah ukraine did pay, they keep landing. Ukraine.

F

If I don't, I will remember last month it has, I don't know.

I

They they did pay, they didn't pay for it, they fully paid. Well, I mean, like net jets lands every day.

H

Though I mean the charter for that lens guys here, all.

E

H

E

G

E

G

The problem with them is that they keep paying and then they keep landing so they they keep batting.

I

They're not keeping up they're not giving up basically well.

H

You charge them a piece on top of them yeah so many days, yeah.

D

Well, we're working with them there, yeah they're, paying but later.

G

I

It's the same thing you just can't keep up with reduce, basically yeah.

A

But it just seems to be the same numbers man, or is it because of the same month? Well, this is up to you.

I

I

So, for example, if they had uh any landings this month, they pay those landing fees, but they they just can't keep up what they are.

H

They're paying you 120 days or what well.

I

H

Always behind each other.

I

H

Overnight, even.

I

Well, kind of about us that we're working with them, uh we can come into.

H

I

F

H

A

H

Individual invoices over 90 or you're, just saying, there's an outstanding debt. Okay, I'm saying: if they're paying you know, 60 or 90 or 120 days out of the past invoices.

D

They're, probably they're paying like buying boys.

J

Within the same money,.

D

Within the same money, but then they can, they cannot keep up the grade current but they're paying.

E

So the 3 000 is cumulative.

D

K

I

A

I

A

Yes, it was my water bill. Would you guys work with me.

H

And they charged the company, I mean the person up front because they're used to using themselves yeah.

D

Yeah they do charge up front yeah, but we need to do better than that.

G

Yeah, that's what we're we're trying to hire uh this company that will do all the building for us and uh because we're basically doing it uh manually, uh the the.

H

G

Yeah it's on a percentage basis, so we're gonna try to do a one-year trial, but we're gonna put it up for uh our are at peace before uh and one year trial, because obviously uh I mean we were collecting 1.2 million dollars and they're gonna come come in with another, with the same 1.2 million dollars, and now I'm gonna share this uh 1.2.

J

Million dollars.

H

Yeah yeah or more share it 1.2. I guess before you do that how many delinquent accounts exactly.

G

Yeah, well that that's the thing that uh we don't we don't. uh We might not catch all the planes out there because we're doing it on uh uh on the base on the on reports that the tower provides, uh then the tower is not 24 7., so uh you can say it's on an honor basis. Sometimes.

B

Somebody with knockers out there.

G

And there's a parking piece also that uh if there's a plane overnight, where basically, we need to catch it ourselves. So how are you going to get you, okay, with.

D

The software with the software how's, the software, the software, is going to take pictures uh of the tail numbers every.

H

Time they land there's something. That's.

J

Going to be on that runway.

D

So when they landed, the software is going to take a picture and get the the.

G

On the uh on the on the rfp, so it's a percentage of what they collect so.

A

I've worked with them, it's like they collect 35 to 40 percent, sometimes depends so they're pretty high. I know working with the city. They hope they can go lower because that's a significant amount of money that we're just yeah.

I

We're getting 70 percent of our income or maybe 60. So what did they say? It was the more they collect the last state with charges. Okay, but we'll.

A

See that whenever yeah.

A

They try to start off at 40, 50 you're, like hey only half.

J

But I really get something.

A

Sometimes off those bad clients, but then the more money I give I mean the more accounts I get. They start dropping down to 30, 35 or 30 25.

G

Yeah, but that's what that's what I say like we're: getting the 1.2 million dollars, I'm expecting to see 1.8 or 2 million dollars, and we can.

D

Share something out of that.

G

We're missing we're missing we're I'm thinking we're missing some revenue out of that. So hopefully we can get the software.

D

We're going to catch.

H

G

Well, they're supposed to, but uh also also whether it's on an honor system, I mean they land. I mean the fbi can say, I'm gonna wave your landing piece and we don't know.

G

I

They can do that so just, but they have to report.

H

The fuel sale no.

I

D

G

But they report the.

D

Fuel sales, the.

G

Fuel cell, but we don't know- I mean the actual- who, who did they sold it to? They would just get that gap.

D

So hopefully, with this software, we'll kind of catch it all. Basically that's what we're trying to do so.

H

You're going to find the fbo yeah.

G

You know yeah we'll find out. So that concludes the the link when we're renting.

E

Everybody on rents, everybody's paid up.

G

Yes, so we're now.

G

To the status of taxiway, g1 and g2 construction, so I transfer over to mr labrada, mr.

D

Chairman the uh because the status of the construction that actually weighs like gulf war and walls too we're at 20 right now and we're just doing uh the contractor is reconstruction. You know and we're doing debate with. Actually we started putting concrete last uh yesterday, so we started putting concrete so we're on track, so we're on schedule right now we're on schedule, no problems.

G

All right uh general staff comments. uh um I don't think we have anything we didn't uh meet with any anyone important this week or we had a tour. We had a sister uh youth council coming last yeah.

G

We had a couple of board members. Also did the airport tour here uh miss you just wanna share with mr guardio. I don't know if you all uh want to share something with that group. What you saw did you like him.

F

No, as I told you after the tour that it's, I think it's it's very important to have a physical view of whatever we decide here, because I think it's the best way to recommend our council members uh about what to do so yeah. It was very good. Thank you for your time when.

E

Was a tour? Was it during my vacation.

L

But yeah we saw a part of also of what's going on on the on the wrong.

G

L

The runways, uh the construction that it's going on so we did see- and it was like like elia- was saying it's it's good to get to see everything that happens, how it happens and why it happens.

H

I wasn't able to make that, but did y'all go over the new construction like a millionaire going to start.

G

Yeah uh we're working. uh We still have some uh some uh uh lease customers cosmetic things that we're doing on the contract, but yeah, very simple, and then what signature? What are they doing with the other.

D

Part of the terminal.

D

They have that whole thing. Don't they release signature on the alternator, oh they're, losing the whole terminal.

D

They're making improvements and they they're trying to lease it to whoever is available for office space on that on that area for office space, that's.

H

The old terminal.

D

They also making improvements on the hangers on the angle, they're, listening to they're they're, doing very well. Signature is doing a great job, improving the existing hangers that they were way back in the 1940s, so they're painting, that's removing that and changing the doors and things like that. So signatures are doing great. The same thing as barker armor air motif is doing the same thing. They already replaced all the metal panels. All the wall, metal panels are new, the roof. We fix it, but it's looking much better.

D

Now you took that over uh robert landis robert landis used to be the three partners, so roverland is in charge now and uh he is doing that and also he's getting into a new office in the front for people to come from the parking lot and get into the into the office. So it's looking pretty good. I mean both both barker and uh and signature. Furniture are doing. Very good. Improvements to the airport to their facilities is.

H

Still here, though,.

H

D

One of the gentlemen has I.

H

Don't know I'll tell.

D

H

The name of the culture, no.

D

I'll tell you that was elizabeth. uh That was, uh that was a wow. I don't remember his name. I can't remember last night.

K

D

There's only two fbos right: we only have two fbo right now. That's signature and barfing and in the future, we're gonna have say we're. Gonna have three.

H

D

D

E

So there's only two now there's.

D

Only two: yes, there.

H

Will be three that will be three.

G

Signature is working on the.

D

Oh there's little minor things that are working on it. Yes,.

H

D

But they're doing a great job.

H

No, I'm sorry, that's six.

G

Okay million they're, uh I mean we, we already work on the on the list with uh group 270 and group 270 as a subleasing to uh to millionaire so they're working on their end, so we're we're already set with uh oh so.

H

There's 270 is already leaked.

D

They have a master development agreement, development, two there's two groups: master development agreement with group 270 and afco the separate facility company that they have different properties and we have two master development agreements. But.

G

uh Group two seven we're ready. We already set our plan with to group 270 and group 270 needs to set the lease with millionaires. That's that's. What's the part? That's missing right now: okay,.

H

So and then, who went into where I mean the city is in where eminem cargo used to be.

D

Yes, yes, that's that's where the eminem cargo used to be right now.

L

It's probably gonna.

H

H

The city of laredo in occupying that building right now, there's.

D

No building it's gone with the mulligan with the market.

H

Well, where is the city of moreno.

D

The building that's over there, uh the building 190, the one; that's the maintenance, that's in the corner of help hillside and thomas yeah, that's that was our maintenance division. Basically, in that building yeah, that's that's.

L

D

Cargo building is has been demolished.

G

I

G

Items victoria, can you please read them? Yes,.

C

The first item is consideration to recommend to the mayor and the city council: the authorization of a contract with computer solutions, inc san antonio texas, in the amount of 67 367 for the purchase and installation of a new fiber off a new optic, fiber cable running from the main airport terminal to the west tower across the runway. This contract is utilizing the state of texas, dir, cooperative, purchasing um cooperative purchase contract, um pound uh d, I r g b, r, four, three, five, nine dash gray bar d. I r dash.

C

Expiration date is zero: five, zero, six, twenty three and funding is available in the loredo international airport operation budget.

G

Okay on this item, I'll pass it over to andrew.

J

Sir, so, currently that uh that fiber optic line serves for our airport police, it provides all the um the video feed for all the cameras that are on the west side and then also provides the um to where they're able to update anyone that renews their badge. It updates the access control system um so they're able to update it. Otherwise we have to pull each individual batch and then update it manually, then put it back.

J

um So currently, the fiber runs from the air traffic control tower on the west side and then all the way to across the airfield to the north side of the terminal, and this project is going to re-run that all new line from the tower on the west and then to the uh to the south side of the terminal to where airport place is at um so we'll improve like the video quality feed and um and then it's just more of a direct connection to our airport places.

A

This part of the wiring is going to help the help out to get the camera systems to take. Yes,.

H

A

Correct for the tell a little bit.

H

D

H

During the budget process, they allocated you these money or.

G

Yes, are these money? Yes, it's currently on in in our operational budget airport budget. I understand.

H

But where did the money come from from.

G

H

Okay, so strictly all airport revenue.

D

All right we have to be self-sufficient, we have to be self-sufficient for fa guidance.

A

D

A

The budget anyway, for you guys, is this kind of.

D

Allocated to operational expenses yeah, it's already located in their.

A

Any budget anybody want to make a motion on this.

A

A

Motion any additional comments, any you might.

C

To the mayor and to the city council to ratify a service uh to highlight airfield services, llc atom center new york for a community amount of 51 440 for the loredo international airport services rendered included water blasting rubber without chemicals mobilization and rubber removal, crew and equipment services are being obtained using sourceful cooperative contract pound zero. Six two eight one, seven dash hla expiration date is nine. Twenty six. Twenty two funding for this contract is available in the lorido international airport fund operations.

C

H

The la for the landing.

G

Same thing uh from airport revenues and I'll transfer it over to andrew, so he can explain.

J

So that's a project. We do about every three to four years over time that rubber builds up from from all the aircraft and it becomes a safety hazard because it comes too slick uh for the aircraft and then when we repaint it doesn't even last because it just kind of wipes off so um and then the increased cost came from the uh we're. Gonna have to do it at uh two separate times, uh because one runway is closed for construction. So we can.

J

We need to keep the other runway open and you can't use chemicals or what uh no it's just the uh like. Basically like a high pressure steamer and it also protects the uh the joint seals for the air runway as well.

A

And the 51 000 is just for this part one or is it for.

J

Both including two uh mobilizations for them to come out.

A

And you already include this as part of your operational expenses for the previous year's rankings. All right, that's correct! All right! Any comments on this any like anybody can make emotional.

A

This is something that comes.

B

D

Exactly that is maintenance. We need to do it every three or four years.

B

And I think stay in acceleration due.

D

A

Everything four years, I'm sure you have to budget for this as well so yeah, that's correct all in favor, say all right. Any position right motion pass. Okay,.

C

Item number three: it's a little wordy and it and so bear with me. Okay,.

C

Considerations to recommend to the mayor and the city council, a resolution of the city of laredo authorizing the interim city manager to execute an amendment to the chapter 380 agreement with the transporters s.a.d.c.v related to the enhancement of economic development, growth, job opportunities for citizens of laredo retail sales and other businesses and commercial activity in laredo, texas and surrounding areas by providing access to low-cost, non-stop air transportation, the city and iromar sa.

C

The cv have agreed that up until august 14th uh 2022 idol match shall provide three round-trip flights per week to operate on wednesdays fridays and sundays and beginning on august 15th uh 2022 through december 31st. 2022 transported shall operate two round-trip flights per week to operate mondays and fridays. The city and transporters aroma have also agreed that the city of loredo will pay transporters sa the cv, an equal amount to 42 110 on or before the 15th of each month, beginning on august, 20 um in august 22 and ending in december uh 22..

C

The city shall not exceed paying the company more than a total obligation of 552 550 for the full year of 2022.. The city shall continue to receive 142 seats per month until and including december 22, in addition to 513 seats purchased prior to august 1st 2022, but not redeemed four tickets. Prior to july 1st 2022 said, seats will be available to the traveling public for a price of 350 round trip, including all taxes and fees funding is available in the capital improvement fund.

G

G

Okay, because the monies cannot come from the airport fund, these ones number one that hold your mojo. um Well, you can that's, that's, not a capital approval. No, but we had the money there. It was transferred before there from the automotive fund. Probably uh it was from the million dollars that it was from the year before.

G

So it's uh funds that were available there from prior years as.

A

An advisory board. I know this is a lot of money going out there. We already had this discussion before they came to try to renegotiate. That's one thing that we're trying to avoid yeah.

H

G

We just say no.

A

G

Well, plan b here I mean if we say no to this uh I mean they will just pull the plug and leave laredo.

A

Right now, I know that we, the city, gets reimbursed by the 357 dollars that they're for the airport, whoever the funding comes from, gets reimbursed.

H

How much is that.

A

Is that being? Is that being reimbursed? What based on the numbers from a 400 whatever? I believe it was 42 000 a month off that 350? How much of that is being thrown back into that fund to complement that, to make sure that we try to meet our goals? That's the subsidy yeah.

K

Basically, and.

A

It's really looking at that, because we're substituting companies to stay here, yes- and I know what I know our intent, but is it really being utilized yeah consideration?

A

I know that you know we want that direct flight and it's just won't fight for mexico city. Mexican brokers are the one and for using that to visit clients, but is it really being used.

G

The way that it works is, uh I know it's a kind of confusing the wording that it's here I mean it's just basically uh straight from the contract, not nothing less, but the way that it works is uh basically the the flight is. uh The total cost is six hundred dollars.

G

So if the, if the city wouldn't put any money on it, you you were looking into paying 600 bucks for a round trip with uh uh with luggage and everything. So you were looking at 600 bucks, so the city is paying uh 250 per ticket up to 143 tickets per month um per passenger to have a 350 dollar flight.

G

So you go in and you you put the code visit laredo uh visit that lrd. Let me take it. Let me stop you so.

H

I can get something.

H

So they have how many seats available per month.

G

uh Well, you're, looking at a plane that has um 63 it's an atr, so you're looking at 63 times, three.

H

G

So 756 56 monthly and we have.

H

And you're guaranteeing 140.

G

142 seats, yeah 142 cents, but we already guaranteed 250 dollars of 142.

G

Yes, right, that's correct, so that was the original. The original deal.

E

So I had a question so it's it's been reduced from three to two.

G

That's gonna in august because that's known to be brutal here, elaborate.

E

Monsters, so that's 42, 000, okay, so what I want to know is: are we gonna pay more add more to.

G

We're gonna the subsidy.

E

G

Contract, that's 300, yeah, we're gonna, we're gonna end up paying 552 550, which is still less than uh than the 980 that we paid the first year. That's still a good point on my uh on my view to keep the flag. uh I mean we're not considering that uh the the reason for this is obviously I mean the ridership is not there. I mean they're flying with a low factor of in the 20s low 20s uh and the gas prices I mean their gas prices are killing it they're, killing them and they're.

G

They haven't increased the price of their.

E

So I have another comment because- and I was talking to mr websites when we were coming up somebody's marketing this- I watch tv I'm on media, that is social media because of the work we do and everything I have never seen an ad. If I can tell some friends of mine, you want to go to mexico city for 350, they'll jump on it. I don't hear it. I mean who's marketing. There's.

H

No social media players, there's there's.

E

Nothing not even on tv. You can.

H

Do for free, not.

E

Even on television, so somebody has to market it.

E

If you have this product and if you don't tell anybody about it and if you're just focusing on certain people, certain businesses.

G

We started a campaign uh recently I uh a streaming campaign because that's what I think that's where the market is.

E

Where, in the streaming campaign, if you can tell.

I

Us so how it works is it's a digital campaign? That's gonna hit uh zip codes, seven, seven, eighty forty one, all the way to seven eight, forty five right. So, if you're watching netflix hulu you're to get a 30 second video of the flight, um that's the lowest or cheapest way of the airport, we're going to pay 5 000 800 a month for that digital campaign.

I

To do we tried to either going into television we're talking about the 30 40 000 a month way expensive and we're kind of like doing it as a trial basis to see we're doing it for three months to see how that's gonna impact the passengers.

I

uh I met with the marketing company we have with the airport and they started seeing a lot of numbers. uh Aromat also did say that in the month of june, they started seeing a bunch of passengers starting buying tickets.

E

We need to 20 average. So what.

I

We need to see well these numbers, these numbers.

J

That mr sanchez.

I

Just said, it's basically before the digital campaign uh we're going to start seeing that impact in the next month or so, but.

H

Who's doing facebook and twitter now.

I

So we have a marketing company called madison avenue, medicine, local company, that oversees facebook or basically social media platforms for the airport. um But.

E

I've never seen it on facebook.

I

Nobody's seen it that's.

D

I

At the beginning, at the beginning we had an issue with the original facebook account that was created back in I don't know five eight.

E

Years ago, where.

I

E

Yeah check it out.

B

E

No, but but you know, and and and pardon me, I don't mean to interrupt or anything, but the thing is we're not seeing the marketing and for the amount of money that we're putting into this now they're they're, reducing it now we're having to pay more money.

G

But, and- and let me just interrupt you there- I'm sorry but uh the the reduced flight is because the they know this the month of august and october they're brutal for the industry, but that doesn't mean that they, if the demand is there they'll bring back the flight. I mean, there's they're, not they're, not close. To that I mean they're, just we're just uh we're just trying to minimize the loss, because right now, they're looking at a 70 000 loss per month, they.

D

Have a cam: they have it on 250 dollars before june 30 and 22 yeah.

A

We've had them for a year and a half yeah 250 dollars, and I don't mind that it is like when the red and is it an international.

D

G

uh That's why we put uh we're putting some closure on the we're requiring some uh pro formas and we're we're not gonna pay until until the 15 of the month or so on, not at the beginning of the month, so they can bail on us at at the end of the month or so we're not paying upfront for services.

G

So I mean we're we're protecting ourselves.

H

As much as we can yeah.

B

H

G

They they have some closure that uh there are some um protections for them. I mean they're for us. For us I mean they cannot cancel a flight for uh just because they want to. I mean they they're just honestly.

A

You know maybe some planes.

G

Usually it's a weather, yeah yeah.

G

Yeah they will, they will have to make it up.

H

Either extend the contract, you know when they.

A

We already had an agreed contract and now they're coming to us, because I obviously they felt they needed to renegotiate because somebody's hurting. Well, it weren't you know, so I know taking that consideration. I know this is what comes to us here.

A

I know that we had a hard fought discuss battle when we were initially working on this more with the private sector and we kind of leaned on the city to help us out. So the city took over 100 percent yeah. So with that being said, with the private sector opting to buy at least 20 percent of the of those vouchers that we were that you've been discussing, yeah is.

J

This really beneficial for us.

A

I know that the flight is awesome, yeah, taking acceleration the amount of money we have to pay for.

G

Yeah I mean uh my total for this route. I think it it has potential. I mean it's just been uh hit with uh it started in the in the middle of the pandemic and then now it hit it's been hit with uh with uh fuel prices. uh So it's been um terrible.

A

Is this gonna be on the next um agenda item, or can we do more research on this? It's.

G

It's gonna be on the next agenda. I mean they're they're on.

A

Next monday, next monday, yeah yeah, so we have to basically vote here. We can't vote yeah.

G

uh Not the ceo, but the second in command here came in and we met uh with uh mr zellman.

H

Give me half a million.

E

Just feel there's more marketing that needs to be done and.

G

E

Week on television right now, it's summer time, if somebody thinks.

G

E

350, uh what is it 350 round trip? You'll get people.

H

Going to moderate yes,.

I

The digital campaign, um of course,.

H

I

Asking to madison avenue was the lowest cheapest way to do it.

H

I

Is it effective so we're we just started two, it's two. uh Let me show you the video really quick. um Well.

H

Let's just give me the numbers again, I'm sorry, so it's how many flights a week three times three.

G

H

D

B

They're averaging 20.

G

At least 20 people of.

A

But they're still taking a loss.

G

They're taking a loss uh the month of may they they show us a loss of 70 000.

A

G

A

Our subsidized income- yes.

G

Because of fuel prices, they were, uh they started them.

E

They started, I've never seen it, they started starting, they started the year. The ridership was picking.

G

Up but then the fuel price increased because of course, we started seeing what.

H

Does that plane need to break even.

G

uh They say with a 40 percent uh load capacity, they will be, they will break everything with the subsidy.

H

Without subsidy.

G

H

Wait but I don't know, but without.

G

Without without most of the airlines, you probably say about 60 60, 65 percent,.

E

I I just I mean I I know at the end of the day the city council is going to want and we can even say.

B

E

To the council says: yes, it's going to be yes, but but really truly- and this is just me- I just feel there's more marketing than this. I know it just started but um and that's a great uh video, but let's not limit I'll, be honest. I am not on instagram, you know.

B

I I'm not, you know and.

E

And many of my friends are just like facebook is where we go to right and.

D

We're generally that our.

E

Generation are the ones who are.

D

E

Spending more on our own vacations, so um all that digital is fine and everything, but I just really truly think that uh marketing needs to be improved. Yep.

G

We're helping them out as much as we can and we'll do as much as we can. I mean we. We we believe that route can be successful and uh I.

E

Still think tv at least do it one week, two weeks, I know at work when we offer something and we put it on the the news the next day we're saturated, especially 350. Where do you see three hundred.

I

People we try to contact the you know tv stations they they they required a contract of six months to a year. They don't let us do like a week or two weeks or we've tried it.

E

Really yeah, we do it, we do it, we do it all. The.

H

Media person and they buy the time, so you don't have to buy time.

A

Sometimes like that politicians do it whenever they're doing reports.

E

But what I'm trying to say is.

A

Don't don't worry, whoever you're working.

E

With don't limit it to the social media.

H

Like I said I haven't and where is the budget? I'm sorry where's.

E

H

Budget for this for the advertising to subsidize this, how much how much money do you have.

G

No, it's on our regular advertising.

H

But it should be associated with this. So if you're saying I'm going to spend- let's just say, 700 000 and I'm going to keep 100 000 for advertising to go to the airline.

G

Yeah, well, it's also part of the cbb's budget. I know cbb also advertises, uh but that cbd advertises you know instead of the mexico, because they also bring.

E

Here, there's there's a lot of people that well.

G

Cbb has to bring bring back the beds. That's.

E

A

Have you done a study on who's actually been on the flights to sit to see how.

B

Does your customer further outreach the customer.

A

That's like something.

I

To track the exact customer.

E

Right and then you can share them.

I

Yeah, so by doing this, digital campaign is going to help us a lot and see actually what zip code is buying more tickets? What zip code we need to target more we're not targeting uh zip codes where we know that they're not going to travel so we're going to start seeing those analytics in the next week or two.

E

Because everything is expensive and I go back to like for 350 dollars.

D

Well, we have people complaining that 350 dollars. It was two from the private sector, complaining that it's too high.

H

I didn't know several people just drove to san antonio to fly to the moderator, because yeah.

D

Because they complained that 300.

H

Is too much from the private sector? How much is the ticket from san antonio.

I

D

People from security, they fly san antonio monterrey because they don't want to drive anymore.

A

Okay right now, there's a conference at the mexican brokers conference in venezuela a huge opportunity, but I know people are driving up monterey.

D

Exactly here, so we also need the help from from the from the private sector that start complaining about the 350, because that's what you're saying.

H

It's good, they know about it.

E

Okay, my personal one, the one from neighborworks.

I

It's on facebook, you can actually.

D

They're used to either internet, they use twitter, facebook and instagram. No, are you buying.

H

I

Facebook they they boost, they boost those posts, not.

H

Everything not everybody has on facebook.

D

I

No, they don't have.

D

H

D

I understand what you said. Yes, are you doing it.

H

Traveling any type of you know what is the kayak and all the different yeah.

D

So the travel surfaces, the travel applications.

H

All right, I'm sorry, I just needed because I didn't know anything about the contract. So I.

D

Know that's what we care for that's.

H

What we're here for you know, so it's not a it's a lot of money, but it's not a huge system.

G

Yeah last year was uh was about uh 980 000 uh last year's subsidy, so this year uh the total amount will be 552. So still less still a lot of money.

H

Or less trips, but I like to say in this time frame, commissioner.

H

What benefit is the city? Are you seeing heads and beds? Are you seeing any revenue from it.

A

Car rentals anything you already had a year to study on this basic thing,.

G

Well, last year, last year I mean it was: um it was not a good year for today.

H

We understand that, but who, who were the clients last year.

G

They don't have that data to provide.

H

Well, it does, you know good.

A

B

A

Have to say something now to find out whether we agree because the meetings next week on monday so.

G

Yeah we have to.

A

Make a a commitment to say: greer or disagree. You know so yeah.

H

If you get 12 people three times a week like I said, if they're all locals, all you're doing is benefiting the local guy you're subsidizing his flight. That.

A

He's gonna take anyway and our like, I said our options. Just say: hey, thank you, but we don't want you guys anymore, and then, let's see what we'll see what city council says, though,.

E

Ultimately, it's the city council who's going to decide whether we say yes or no, and if they say yes, it's going to be yes,.

A

Yeah they kind of have the money already budgeted, so they already know what they want to do. But the fact is, if we're an agreement or not yeah.

G

Well, I'm not an agreement. The contract was initially only based.

E

On the marketing that that I I've never seen and even since they started, I have never seen an ad. So that is the only reason why that's just.

H

Really, what I've seen is in the paper what it was announcing.

G

The addition of the contract is 162 000 dollars more. I mean we're already on the hook for 390 000.. So it's an addition of 162 550.. So.

E

It's more, it's still additional.

G

It's additional it's an additional 162.. I mean we're ready, we already needed to pay 390.. So this is an additional 162..

G

A

Regular amount that we offered is basically including last year, which you said was 980 and.

G

A

So it's close to 1.5 million dollars that we're giving understood there. Oh.

G

Yes, so, even even even if you all uh don't agree with this, uh we still need to pay the 390. we've.

H

Already paid 390., we already.

G

Paid uh around 300 000., so we still owe them ninety thousand, according to the original uh algorithm.

G

It doesn't it didn't mention, it doesn't mention where the year to date.

H

With the monthly payments you cannot exceed 552 000.

H

A

I want to ask you this question because I don't put this up for motion: why do we don't get emotional.

E

It still goes forward.

D

Still goes forward, you're an advisory uh yeah.

E

A

But nobody promotion for interest today, I just don't.

H

So from here on, if they approve this, it's fine, it's another 210 550.

G

210 no well, the original contract is 390.. I don't know where you get uh well.

H

I'm looking at 7.2 and it's just 342., where after 7.2 communication for the council.

C

C

D

C

Then, after the resolution, the concept.

E

L

Section: seven three minutes.

I

The difference.

H

See because I had a bunch of more questions on this one because.

I

J

Let's just say the.

H

Ad campaign goes gangbusters, it works, it's saying it's offering 350.. The city gets nothing if the flight sold out.

D

Nothing it's only a subsidy.

H

So they can't raise their ticket price more than 350.. No, no 60 people, it's 350, no matter! Yes!

H

So again, I just wanted to see so I get. If you got august september october november december, that's at 42 000, that's 210 thousand right.

H

Yeah, it says you only paid them 342 here right, yes, and that's so if you stop today, like you say they, if they stop on monday, and they said we don't approve you're already lost three forty two right, yeah yeah.

A

Or you've already subsidized.

H

Yeah, so it's just a matter of 42 000 more per month that.

D

Is correct? That's what it is. Yes,.

H

Or are they still under the old contract.

G

Right now, they're on the on the old agreement. This is an amendment, yes, an amendment. What are the terms.

H

For termination under the old club.

G

Well, I mean um what.

H

Are the terms of termination.

G

It's a mexican company, I mean they can just pull this. What.

H

Are the terms for city council, determination.

G

The terms for termination yeah.

E

Have you ever seen the contract.

G

H

You know the contract yeah.

H

Is it mutual termination? What is it.

G

Yeah mutual termination uh they need to. uh Let us know, I'm.

H

Asking about if city council wanted to terminate bring a copy.

I

H

It may be 60 days, maybe 90 days a week that.

D

H

Takes you to the end of the year anyway, almost you know, okay,.

D

It's on page 305., section 9.1 tournament termination is deleted in star entirety and amended as follows.

H

This is the amended person, so is that what's actually adopted already or are you yeah.

E

That's what they're asking that's what's going to be.

D

Well, this thing says: tournament: termination is deleted in its entirety and amended as follows. So.

K

Binding effect amendment will depend upon the other benefit of forcible excel spread, provided we'll be continuing through four. The four members with a multiple counterpart.

D

uh I don't know that I haven't read a country yet yeah.

G

But what is your question about the contract on this world? The government.

H

Mexican company.

H

G

Well, if the city decides not to pay, they can uh well, then you can get.

H

Sued, so that's not a that's, not a good thing, so I want to know what the contract says. So I can inform my councilman what his opportunities to vote on, because if it says pay.

D

An entire theory.

H

Well, yeah, no, he says if it says, you'd have to give 90 days notice. Well then, we might as well continue, but if it says you can terminate at will yeah.

H

That option so.

B

Terminate the country anyway, so.

H

You want to save the 42 000 a month. You can terminate it well, but if, if it tells me no you have to give them a you know, written notice and then upon receipt of written notice. It's another 90 days, then you might as well.

D

Go to the end, and also you need to take into consideration people who already bought about tickets, what's going to happen to those tickets and those to those people, yeah.

D

Because it says terminate tomorrow and you have a ticket for november, so what's going to happen to that ticket, it's.

H

Easier for the ticket for the city to reimburse those tickets yeah.

A

You know all six of them yeah that better, regardless the city, the council will make decisions, we're just going to say.

H

No, what I'm saying I want to know what my council member can vote.

G

There's a valid point: yes, it should be 60 days notice, at least it should be, or you know.

H

Do you want to move on to the other items until we have that.

A

Yeah, please, because I know we're over time.

G

All right consideration to recommend to the mayor and city council the authorization of the interim city manager to execute a lease agreement between the laredo international international passenger international airport and clear choice. Er located at 50 to 10 pulo loop at the loreto international passenger terminal in a space consisting of 400 square footage uh constituting a concession space. On the first floor. As the position.

H

I

G

A for the purp purposes of operating a covet 19 testing center for the purposes of providing covet, 19 testing, vaccinations, cell distribution and or donation and supplies, as approved by the city. Emergency management coordinator for the public operations will be from 10, am to 10 pm monday through saturday. The lease term shall be for one year with one option to renew and base rent shall consist of 2 000 per month.

E

This is effective.

G

Effective because.

E

They've already been there right.

G

They've been there, and this is uh consistent with the with the the emergency management coordinator.

H

For your traveler.

G

For my travelers and for all the laredo citizens, that can one want to come here and you really want to bring positive people into the airport. Well, we've been doing that for the last two to three years.

G

I mean we went, we even removed the kobe, the vaccine, because it was a safety hazard for all the people. Here we had lines all over the world.

H

Why would you want to have people who think they have totally come here now? I can understand it because, where you're buying public- and you say everybody must have a test or something but.

G

That doesn't seem to make sense to me. Well, it's it's open for the public. We cannot.

A

Limit to them, sometimes the government doesn't do it.

G

It's a public building yeah, it's a public building special, it's open for everyone, and uh we had this because uh the city, the city, uh emergency management, coordinator, controls all these now.

H

Right here next to the elevators to the escalators- yes, yes, that makes no sense to me.

G

Well, I mean uh they, you know all the curatives that were all around the city. Remember.

I

G

You know well hear me out I'm here where I'm going to all the curatives that were around all the city, uh all the series. Well, they weren't paying any money as these guys weren't paying any money. They had a lease for uh for a couple of months done two three years ago uh before my time, so uh the city realized that the curatives and all those people in town weren't paying any money to the city.

G

So they created this master lease agreement with where all these people that were for profit and not doing anything for the city, they were need to pay now profit. uh Now they needed to pay some base rate to everyone. They they fall into that. So uh we thought that they were gonna just say: well, we don't want it and we're gonna be out, but to our surprise they say I think the rent is excessive, but uh but oh well. We want to continue to with the lease and we will pay the two thousand dollars so.

H

Why you would bring me down knowing you know? I don't fly commercials very often, but I don't want to come in and see that thing right next to you know so, because people touch the escalator or whatever.

H

You know if you it was somewhere.

J

Else I mean I understand the second.

H

Floor you already checked in hey, I wanna. I need to be tested, fine! No! I need a certificate for guadalajara, whatever yeah, you know, fine.

G

Well, we did offer, we did everything based on on the ordinance provided by the city and we're just complaining and offered them the the.

H

G

Okay with us yeah they are, they.

E

Are implementing.

E

G

Approved the lease and uh we're based on this ourselves on the on the space, provided the square footage and everything.

H

And we came up to that.

A

Emotional discussion and all that go ahead. No.

L

Just a question, then: is it going to be now again mandatory at least to come into the airport wearing face mask at least or it's.

I

D

G

Optional, no, it's kind of we haven't received anything it's a federal federal law, so we need to follow tsa rules in consideration.

A

We know, I think we would want it.

D

You can't wear the match if you want to yeah.

A

But it's not mandatory. That being said, um is there a motion to approve or discipline.

A

F

But it's exclusively only for coffee tests or they're going to provide another kind of services just.

G

H

Open to the public.

G

I believe it's uh 260 or 160.

G

Yeah well, that's we thought that we're gonna bail out because it was two thousand dollar rent, but I mean he complained that he was excessive. The rent but I'll stay right. That was.

H

His answer they're making money.

E

Why were they there without rent for the longest time, though, emergency emergency management.

I

Emergency map- that's how they came in, that's how they came up.

E

Until they came no more.

A

Yeah anybody second floor or want to make a motion.

A

Okay, one motion, mr halo, for disapprove.

I

Nobody; secondly, not to recommend.

A

G

D

Motion to approve somebody.

A

Somebody needs to because everybody needs to go for like a second, but with that being said, there's an emotional making to make a change to.

D

Some somebody you, you have.

A

To make a motion to approve a motion.

D

E

So the emergency management is is already wanting them to be here for.

G

Their with all all the requirements by the emergency management coordinator and uh we're charging them whatever we need to charge.

A

Them, which is two thousand dollars.

I

It's better than not having.

A

H

I

D

E

Coming in and for them.

A

All right, let's go back up to the number three we've got the contract here. It looks like there's a 30 day, 30.

H

Days, there's another 30 days so you're already to the end of the year. So.

A

Go ahead and approve okay to motion to.

H

Recommend 30 days.

B

And then after and then 30 days, 30.

H

Days to negotiate and then you have to send them another 30-day termination letter and so on.

G

Three days, a motion.

H

H

E

Just want more marketing, oh.

H

H

That to make sure we recommend approval, but we also would recommend that we must have more marketing the.

D

Emotion, can you.

A

B

So the motion is to increase marketing.

A

To make sure that we kind of promote this and then recommend.

K

E

Second, but if I may, but to use uh media outlets, that the general public.

A

That's where the motion, so I guess we got all four now we got requests. Okay,.

G

Thank you, mr chairman. Let's request status, update on consulting services, agreement between the city of laredo and rafael, duenas senior, doing business as ramco group incorporated for economic development consulting services.

G

Mr chairman, this was a request on the last meeting. At this point I have nothing to report. There has been no movement, no requests or anything to to pay anything from the airport. uh So I'm there there has been no work done or anything.

A

Requested from the like to monitor, make sure that you know if there is any money paid, what kind of promotion laredo did get out of this one individual and how it benefited us, because that 67 could have been done to pay that the.

E

A

Yeah he's just another broker: he's going out there saying he's: promoting laredo he's promoting his own business, he's not promoting the radio so yeah. So.

E

No work has been and nothing has been paid out. Nothing.

G

Has been paid out, I have not received any bill from the economic development department, so no activities can he just bill. You.

H

You already got approved by.

G

Somebody he got our contract approved by council for 67 000. Half of it should should be benefit from the airport and we need to. We.

H

Will get demonstrated.

G

Or any other, any other requests for the next meeting that we just.

A

To follow up on this item that we have discussed right now, just make sure you want to recurring.

D

For every minute, it's an open item: okay, okay,.

E

What's the status on the the building, the realtor the to get those buildings leased up.

G

Well, we receive an email from mr kelly that uh he's working on a proposal and uh so we're still pending on receiving his proposal and but uh but we've been doing really good. Lately.

G

Manuel and myself might be renting everything because we're doing really good in.

E

The last couple of weeks.

G

E

For marketing we.

G

Have a couple of meetings in the next few days and uh we might rent everything out rebuild.

I

H

Well, if it's gonna be I'll.

H

You need to have a termination clause in there, that's beneficial to the city, because if you do get, somebody is going to be that needs tarmac that needs access or whatever. Then you know.

A

There's only one we're looking around the surrounding building, not even that.

D

Yeah, let me let that surround you. Let me tell you a termination clause that we hadn't won. At least the terminator clause was to leave the lot as it was before the construction. It's called terminator club you're, leaving you remove all the improvements and no. Why do you want to do that? Because that was an old building? It was a mobile home and they removed it and they left and grading. We stipulate that law has to be graded, that's what's original and the other thing, so they they did all the asbestos a pavement yeah, but.

H

We're talking about offsites.

D

H

So what I'm talking about sorry motion of proof.

A

What church is.