Nov 21, 2024 Airport Advisory Commission

OKAY.

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IT IS NOVEMBER 21ST, 2024 AT FOUR O'CLOCK, AND THE AIRPORT COMMISSION, UH, MEETING WILL COME TO ORDER.

[ROLL CALL]

PRESENT, VICE CHAIR FELS.

HERE.

COMMISSIONER BROWN.

HERE.

COMMISSIONER ARIA.

COMMISSIONER VARGA.

COMMISSIONER LARSON HERE.

COMMISSIONER ZARN.

HERE YOU HAVE A QUORUM.

EXCELLENT.

THANK YOU.

NOW,

[1. 24-55632 Recommendation to approve the minutes from the Airport Advisory Commission meeting on October 17, 2024.       Suggested Action: Approve recommendation. ]

I'LL MOVE FOR APPROVAL.

THANK YOU.

SECOND.

SECOND, THE MO THE MOTION HAS BEEN MOVED AND SECONDED.

SECRETARY, WILL YOU PLEASE CALL FOR THE VOTE? ANY PUBLIC COMMENT? OH, SORRY.

IS THERE ANY PUBLIC COMMENT? YEAH.

SEEING NONE, WOULD YOU PLEASE CALL FOR THE VOTE CHAIR RUBIN? YES.

COMMISSIONER BROWN? YES.

COMMISSIONER LARSON? YES.

COMMISSIONER ZARN? YES.

VICE CHAIR CHRISTOFFEL? YES.

MOTION IS CARRIED.

THANK YOU.

SECRETARY, WILL

[2. 24-55633 Recommendation to receive and file presentation regarding the LGB Business Partner Spotlight.       Suggested Action: Approve recommendation. ]

I'LL APPROVE THE RECOMMENDATION.

THANK YOU.

SECOND.

THANK YOU.

GOOD AFTERNOON, CHAIR REEN AND COMMISSIONERS.

UH, I'M PLEASED TO PRESENT THIS MONTH'S BUSINESS PARTNER SPOTLIGHT TO THE COMMISSION.

UH, THIS MONTH'S SPOTLIGHT IS ON MR. BARRY RELLA, THE NEW CEO OF AERO PLEX ARROW LEASE GROUP.

UH, MR. RELLA HAS A EXTENSIVE, EXTENSIVE, UM, BACKGROUND IN AVIATION, AND WE'RE VERY FORTUNATE TO HAVE HIM RIGHT HERE ON OUR CAMPUS.

UH, I WILL SHARE THAT.

UH, HE WAS FORMALLY THE DIRECTOR OF JOHN WAYNE AIRPORT.

WE STILL LOVE HIM THOUGH , UM, BUT .

BUT HE, HE DEFINITELY, UM, JUST HAS AN AMAZING, UM, BACKGROUND IN AVIATION.

HIS PROFESSIONAL EXPERIENCE IS DECADES LONG.

AND SO, UH, I'D LIKE TO, UM, INTRODUCE HIM.

HE'S HERE, UH, THIS EVENING, AND SO WE'RE PLEASED TO ALLOW HIM TO HAVE A FEW WORDS TO SPEAK TO THE COMMISSION AS YOU WELCOME HIM.

AND THAT CONCLUDES MY PRESENTATION, .

WELL, FIRST OF ALL, ESTEEMED AIRPORT ADVISORY COMMISSIONERS.

THANK YOU FOR, UH, TAKING YOUR PERSONAL TIME TO VOLUNTEER FOR THIS IMPORTANT POST.

I KNOW THE TIME WHEN THE TIME EXTENSIONS THAT THIS TAKES, AND, UM, YOU'RE HELPING MAKE DEMOCRACY WORK, FRANKLY.

SO THANK YOU FOR FOR DOING THAT.

UM, I AM THE, THE CEO, UH, NOT SO NEW, I GUESS, SIX MONTHS NOW, UM, AT, UH, AERO PLEX AIR LEASE PLEX GROUP.

UM, WE AN AVIATION REAL ESTATE FIRM.

UH, WE HAVE A LONG-TERM LEASE WITH YOU AND A COUPLE OVER AT VAN NUYS.

UM, AND IN RETURN, WE'VE BUILT, UH, AVIATION PROPERTIES, UH, LEASES, UH, EXCUSE ME, UM, UH, HANGERS, UH, OFFICE BUILDINGS, AND THEN WE RERELEASE THOSE, OR SUBLEASE THOSE IN SOME CASES, SUB SUBLEASE THOSE TO, UH, UH, AVIATION BUSINESSES AND, UH, PRIVATE, UH, AIRCRAFT OWNERS.

SO HERE AT, UH, LONG BEACH, OUR PRIMARY TENANT IS SIGNATURE AVIATION.

UH, I'M SURE YOU'VE SEEN THEM, YOU KNOW, OVER, UH, ACROSS THE RUNWAYS.

UM, GREAT, UH, GREAT GROUP.

WE HAVE A, A, OUR LEASE GOES TO 2055 AND THEY WILL BE WITH US THE ENTIRE TIME.

UH, WE HAVE MANY MONTH TO MONTH, UH, HANGAR AGREEMENTS.

UM, SO THOSE ROTATE, UM, AS, UH, PILOTS STOP FLYING OR MOVE OR, OR WHATEVER.

AND, UH, THERE ALWAYS SEEMS TO BE QUITE A SUPPLY OF NEW, NEW TENANTS.

SO THE BUSINESS IS DOING QUITE WELL, AND WE THANK YOU FOR OUR TENDENCY ON THE AIRPORT AND, UH, ARE GLAD TO BE PARTNERS WITH WITH ALL OF YOU.

UM, HERE AT THE AIRPORT.

UM, MY BACKGROUND, UM, I WAS A, UH, UH, A LITTLE KID DREAMING TO BE A PILOT ONE DAY, AND I FOUND MYSELF, UH, FLYING JETS IN THE AIR FORCE.

AND, UH, WHILE I HAD PLANNED EVERY DAY OF MY LIFE UP TO THE POINT I GOT TO PILOT TRAINING, I NEVER THOUGHT BEYOND IT, NOT ONE SINGLE DAY WHAT I MIGHT DO.

SO WHEN I GOT OUT OF THE AIR FORCE, UM, I, UH, JUST SORT OF DID A BUNCH OF DIFFERENT THINGS, RAN A LITTLE CONSTRUCTION COMPANY, DID A BUNCH OF OTHER THINGS, BUT THIS, THESE FINGER TAPPING OF THE AVIATION COMMUNITY KEPT DRUMMING IN MY EARS.

UM, AND SO, YOU KNOW, I'M GOT WITH A DEGREE, I'VE BEEN FLYING SUPERSONIC JETS.

I WOUND UP POURING GAS

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UM, AND ONE DAY MY BOSS THERE, THE AIRPORT MANAGER, BROUGHT A JOB ANNOUNCEMENT FOR A JOB UP IN LOM, PO CALIFORNIA, A LITTLE TINY PLACE IN NORTHERN SANTA BARBARA, YOU KNOW, IT, SANTA BARBARA COUNTY.

I APPLIED AND BEYOND ALL EXPECTATIONS, THEY, THEY HIRED ME AND MOVED TO A LITTLE BIT BIGGER AIRPORT, A LITTLE BIT BIGGER AIRPORT.

AND ONE DAY I WOKE UP, UH, RUNNING OPERATIONS AT, AT UH, LAX.

UM, MY GOAL, THOUGH, FOR THE PREVIOUS SEVEN YEARS WAS TO, UH, TO BE THE DIRECTOR AT JOHN WAYNE AIRPORT.

UM, WHENEVER I WOULD, I WAS, WHEN I WAS AT SACRAMENTO IN OPERATIONS, WHENEVER I'D BENCHMARK OTHER AIRPORTS IN THE STATE, MEDIUM HUB AIRPORTS, NOT, NOT LONG BEACH, , JOHN WAYNE WAS ALWAYS AT THE TOP OR NEAR THE TOP OF EVERYTHING I BENCHMARKED.

AND I SAID, WOW, WHAT A GREAT THING TO BE ABLE TO GO SOMEPLACE WHERE YOU DON'T HAVE TO RESTART AND FIX EVERYTHING.

UM, AND, UM, YOU KNOW, LUCKILY THEY, UH, THEY HIRED ME AND I GOT TO FINISH UP, UH, THE LAST SIX YEARS OF MY 30 SOMETHING YEAR CAREER, UM, THERE.

AND, UH, SINCE THEN I'VE WORKED AT AN ENGINEERING COMPANY AND BUSINESS DEVELOPMENT AND, UM, UH, AN EXECUTIVE RECRUITING FIRM, WHICH LED ME TO, TO THIS JOB.

AND THIS IS JUST A, A FANTASTIC PLACE TO BE.

HAPPY TO BE ON THE AIRPORT WITH YOU ALL.

YOU'VE GOT INCREDIBLY COMPETENT LEADERSHIP HERE, SO YOU'RE LUCKY.

NOT ALL AIRPORTS HAVE A CYNTHIA GRY AT THE HELM.

SO, UH, ANYWAY, GLAD TO BE HERE IF YOU HAVE ANY QUESTIONS, BUT HAPPY TO ANSWER THEM.

OTHERWISE, I'LL, UH, GET OUTTA YOUR HAIR.

WONDERFUL.

PLEASURE TO MEET YOU ALL.

THANKS.

THANK YOU FOR COMING HERE, JUDGE.

THANK SO MUCH.

THANK YOU.

AND THAT CONCLUDES, UM, OUR REPORT.

ANY PUBLIC COMMENT.

OKAY.

WILL YOU PLEASE CALL FOR THE VOTE? COMMISSIONER BROWN? YES.

COMMISSIONER LARSON.

YES.

COMMISSIONER ZARN.

YES.

VICE CHAIR CHRISTOPH? YES.

CHAIR RUBIN? YES.

MOTION IS CARRIED.

OKAY.

AND YOU

[3. 24-55634 Recommendation to receive and file report from the Sustainability Committee, regarding Airport sustainability efforts with air quality, energy conservation, water quality and waste management.       Suggested Action: Approve recommendation. ]

ITEM NUMBER THREE IS A RECOMMENDATION TO RECEIVE AND FILE REPORT FROM THE SUSTAINABILITY COMMITTEE REGARDING AIRPORT SUSTAINABILITY EFFORTS WITH AIR QUALITY, ENERGY CONSERVATION, WATER QUALITY, AND WASTE MANAGEMENT.

AND I THINK I'M UP, , IS THERE A MOTION? OH, YEAH.

SO MOVED.

WE'RE ALL MESSED UP TODAY.

WE'RE, WE ARE ALL MESSED UP, KEN, WITHOUT THESE NOTES, WE DON'T KNOW WHAT WE'RE DOING.

, IS THERE A SECOND? SECOND.

THANK YOU.

PLEASE GIVE US A SUSTAINABILITY REPORT.

UM, SO WE, UH, DISCUSSED THAT THE A CA APPLICATION BEING PREPARED WITH 2024 DATA WORKING ON US.

THE GREENHOUSE REDUCTION COMMITTEE WILL BE INACTIVE UNTIL JANUARY.

UM, THE REAL EXCITING NEWS WAS TALKING ABOUT THE SOLAR POWER AND THE PARKING STRUCTURES.

THEY'RE UNDERGOING THEIR FINAL TESTING AND ACCEPTANCE, EVEN THOUGH THEY'VE BEEN GENERATING POWER IN MY UNDERSTANDING, SINCE I THINK FEBRUARY AND MARCH, UH, THE CITY HAS A PURCHASE AGREEMENT WITH LUMINESS.

UM, WHAT'S REALLY INTERESTING HERE, YOU GUYS, IS THAT THE AGREEMENTS GRANDFATHERED IN AND NOT SUBJECT TO THE RECENT CPUC RULE, CHANGING THE REIMBURSEMENT RATE FOR SOLAR POWER FOR IF PEOPLE HAVE BEEN FOLLOWING THAT.

UM, IF YOU WERE AN EARLY ADOPTER, YOU GOT TO SELL YOUR SOLAR POWER AT THE RETAIL RATE.

AND THE POWER COMPANIES WERE COMPLAINING BECAUSE IN ESSENCE, THEY WERE HAVING TO BUY POWER AT A HIGHER RATE THAN THEY COULD GET IT ON THE OPEN MARKET ON A WHOLESALE.

AND THEY GOT THE ERA OF THE PUBLIC UTILITIES COMMISSION.

AND DESPITE ARGUMENTS BY THE SOLAR INDUSTRY, THEY MADE A RULING THAT ALL FUTURE INSTALLATIONS WOULD SELL THEIR POWER AT A WHOLESALE RATE.

AND WHAT THAT MEANS FOR A LOT OF USERS IS THAT YOUR PAYMENT PERIOD CHANGES, RIGHT? IF I COULD SELL IT AT 34 CENTS A KILOWATT, BUT NOW I'M GONNA SELL IT AT 22 CENTS A KILOWATT, YOUR PAYBACK PERIOD CHANGES DRAMATICALLY.

THE GOOD NEWS FOR US IS THAT WE GOT GRANDFATHERED IN.

SO WE GET TO SELL THE POWER THAT WE HAVE ON THE, UM, THE PARKING STRUCTURES, UH, AT THE FULL RETAIL RATE, WHICH MEANS OUR, OUR REIMBURSEMENT, OUR PAYBACK WILL BE ACCELERATED ON THAT.

I DO UNDERSTAND THERE'S A LIMITATION ON IT AS TO HOW MANY YEARS, BUT AT LEAST FOR NOW, WE, WE GET TO DO THAT.

UM, THE PROCUREMENT'S UNDERWAY, LAST TIME WE HEARD ABOUT THE SOLAR TREES AND ELECTRIC TRUCKS THAT WE GET A GRANT FOR.

BIDS ARE EXPECTED IN DECEMBER, AND HOPEFULLY SHORTLY THEREAFTER, THEY GET INSTALLED.

UM, OUR FOOD VENDORS IN THE TERMINAL HAVE MADE AN APPLICATION FOR A GREEN RESTAURANT RATING.

I'M NOT SURE WHAT THAT IS, BUT IT SOUNDS VERY IMPRESSIVE.

.

[00:10:01]

AND MY UNDERSTANDING FROM STAFF IS THAT SHORTLY IT'LL BECOME PUBLICLY AVAILABLE, NOT NECESSARILY SUBJECTED TO PUBLIC COMMENT.

UH, IT'S AN INTERNAL DOCUMENT, BUT IT WILL BE AVAILABLE FOR THE PUBLIC TO VIEW.

AND THAT COMPLETES MY REPORT.

OKAY.

THANK YOU.

ANY QUESTIONS? ANY PUBLIC COMMENT? SECRETARY, WILL PLEASE CALL FOR THE VOTE.

COMMISSIONER BROWN.

YES.

COMMISSIONER LARSON? YES.

COMMISSIONER ZARN? YES.

VICE CHAIR CHRISTOFF? YES.

CHAIR RUBIN? YES.

THE MOTION IS CARRIED.

[4. 24-55638 Recommendation to establish an ad-hoc Committee for the limited purpose of identifying one to two Airport Advisory Commission members for the Wings of Fame Program Committee, to clarify exhibit goals and inductee nomination criteria.       Suggested Action: Approve recommendation. ]

IS THERE A MOTION? SO MOVED.

THANK YOU.

I SECOND.

THANK YOU.

UM, SO, UH, CHAIR, CHAIR RUBIN, IF YOU RECALL, A COUPLE OF MONTHS AGO, WE BROUGHT, UH, RECEIVING FILE PRESENTATION TO, TO, UM, UH, REALLY SHARE WITH YOU THE EDUCATIONAL CORRIDOR, UM, AND THE MEMO THAT WE PROVIDED TO MAYOR AND CITY COUNCIL.

AND PART OF THE RECOMMENDATION WITHIN THAT EDUCATIONAL CORRIDOR IS ESTABLISHING A COMMITTEE, UH, PROGRAM COMMITTEE.

AND WITH THAT ONE OR TWO, UM, COMMISSIONERS, AS YOU DO, AS YOU ALL FEEL FIT OR OR ELECT, UH, TO PARTICIPATE IN THAT COMMITTEE.

UH, AND WE ARE HOPING TO ESTABLISH MEETINGS IN JANUARY TIMEFRAME.

UH, BUT, UH, WE WANTED TO BRING THAT FORWARD TO YOUR ATTENTION AT THIS MEETING.

DO WE ONLY THINK IT'LL BE IN JANUARY? I KNOW IT'S AD HOC FOR A SHORT PERIOD.

DO WE KNOW THE EXTENT? UH, WE DON'T KNOW THAT THE FULL EXTENT OF THE TIMEFRAME.

IT, IT WILL GO BEYOND JANUARY.

UH, SO WE JUST WANTED TO MAKE SURE YOU WERE, IF YOU ESTABLISH COMMITTEE, THAT YOU COULD BEGIN MEETING IN JANUARY.

BUT I EXPECT THAT AT LEAST A MINIMUM OF SIX MONTHS, BUT MIGHT BE LONGER.

EXCELLENT.

OKAY.

THANK YOU.

UM, MR, GO AHEAD.

QUESTION IS, WHAT WILL, WILL THE REPRESENTATION ON THE COMMITTEE BE BESIDES COM COMMISSIONERS? ONE OR TWO? YES.

YES.

UM, WE WILL, UH, HAVE, OUR STAFF WILL BE A PART OF THAT COMMITTEE AS WELL AS A REPRESENTATIVE FROM THE HISTORICAL SOCIETY.

AND I BELIEVE THAT'S ALL WE HAVE SO FAR.

UH, BUT, BUT THE GOAL REALLY IS TO, UM, HAVE JUST GREAT WISDOM AND INSIGHT AND CLARITY THAT YOU ALL COULD PROVIDE ON THE CRITERIA THAT WE NEED FOR THE INDUCTEES FUTURE INDUCTEES, UH, AND MAKING SURE WE KIND OF HIT ALL THE MARKS THAT WE'VE SAID WE WANTED TO HIT, UH, FOR REALLY RECOGNIZING CONTRIBUTORS, UH, TO AVIATION.

OKAY.

ANY OTHER QUESTIONS? ANY VOLUNTEERS? I VOLUNTEER MY GREAT WISDOM .

ANYONE ELSE? WE SHOULD DO IT.

I'D BE HAPPY TO DO IT AS WELL.

DO YOU ONLY NEED TWO COMMISSIONERS? I'M SO SORRY.

DO YOU ONLY NEED TWO COMMISSIONERS? UP TO TWO? YEAH.

OKAY.

AND SO, COMMISSIONER LARSON AND CHAIR RUBEN.

VERY GOOD.

THANK YOU.

, DO WE NEED TO VOTE? SECRETARY, WILL YOU PLEASE CALL FOR THE VOTE? COMMISSIONER BROWN? YES.

COMMISSIONER LARSON? YES.

COMMISSIONER ZARN? YES.

VICE CHAIR CHRISTOFFEL? YES.

CHAIR RUBIN? YES.

THE MOTION IS CARRIED.

THANK YOU.

OKAY,

[5. 24-55635 Recommendation to receive and file Monthly Airport Staff Reports for November 2024.       Suggested Action: Approve recommendation. ]

THANK YOU.

IS THERE A MOTION I'LL MOVE FOR APPROVAL.

THANK YOU.

IS THERE A SECOND? SECOND.

THANK YOU.

I AM PLEASED TO SHARE THIS MONTH'S UPDATE TO THE COMMISSION.

I I WANNA START OFF BY JUST MAKING A COUPLE OF OF REMARKS, UH, BEFORE WE GET INTO OUR INDIVIDUAL STAFF, UH, ITEMS. BUT ONE, GOSH, I CAN'T BELIEVE THAT IT'S NOVEMBER ALREADY.

AND SO , WE ARE KICKING OFF THANKSGIVING.

UM, I, WE, WE WERE JUST AMAZED AT THE PRELIMINARY NUMBERS THAT WE'VE RECEIVED FROM, UH, THE INDUSTRY, BUT RIGHT NOW, UM, WE ARE GEARED UP TO SUPPORT THIS HOLIDAY RUSH.

UH, WE HAVE OUR PARTNERS WITH DELTA,

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IT'S THE MOST WE'VE EVER HAD.

SO WE DO EXPECT TO BREAK SOME RECORDS HERE, BUT, UH, REALLY, REALLY, UH, GEARING UP.

IT STARTS ALL ACTUALLY TOMORROW.

TOMORROW.

UM, WE HAVE BEEN REALLY PREPARING, UM, SOME OF OUR HOLIDAY DECOR IS NOW UP.

IT GOT UP YESTERDAY.

THANK YOU, UM, FOR, FOR, UM, JUST, UH, GETTING READY FOR, FOR JUST A, A BIG SEASON HERE.

AND SO WE DO, AGAIN, EXPECT FOR RECORD BREAKING NUMBERS, UM, MORE IMPORTANTLY THAT DECEMBER 1ST, UH, UH, WE EXPECT JUST HIGH, HIGH NUMBERS, SO MORE TO COME, WE'LL SEE IF IT ACTUALLY HAPPENS.

BUT THE EXPECTATION AND ANTICIPATION IS CERTAINLY THERE.

UM, WE'RE, WE'RE PARTIC ANTICIPATING NEARLY A 8% INCREASE AND, UH, YEAH, OVER THE SAME TIMEFRAME LAST YEAR.

SO PRETTY, PRETTY HIGH NUMBERS.

AND WE ARE JUST, JUST FOR FYI AND WE HAVE COMMUNICATED THIS OUT TO THE PUBLIC.

WE ARE PAUSING OUR ROADWAY IMPROVEMENT PRO PROJECT, UM, DURING THIS, UH, 10 DAY OR ROUGHLY 10 DAY TIME PERIOD.

UH, WE MIGHT SHAVE A FEW DAYS OFF THE END, BUT WE ARE, UH, HOPING THAT WE CONTINUE TO MAKE THE TRAVELERS HAVE A VERY EASYGOING EXPERIENCE, UM, AS THEY SEE THEIR LOVED ONES.

SO, WOW.

YEAH, WE'RE, WE'RE EXCITED AND WE'RE READY.

SO WE'RE REALLY EXCITED TO SEE THIS HAPPEN, FESTIVAL OF FLIGHT.

SO THE SECOND THING I WANTED TO SHARE, I MEAN, SINCE THE LAST TIME, UH, WE HAD THE MEETING, WE WERE RIGHT ON THE CUSP OF FESTIVAL OF FLIGHT THAT WEEKEND, AND IT'S NOW BEHIND US.

AND WE HAD OVER 12,000 ATTENDEES.

AND I'M SURE, UH, IN, IN OUR PUBLIC AFFAIRS UPDATE, KATE KIRKENDAL WILL TALK A A MINUTE ABOUT IT.

BUT WE WERE REALLY, REALLY PLEASED, UH, TO SEE THE TURNOUT, TO SEE THE, UH, THE LEVEL OF FAMILIES THAT WERE THERE.

UH, JUST REALLY, REALLY GREAT.

AND I BELIEVE ALSO SAW A COUPLE OF COMMISSIONER SIGHTINGS.

SO IT WAS REALLY WONDERFUL TO, TO HAVE ANOTHER AMAZING EVENT.

REALLY WANNA THANK THE POLICE DEPARTMENT, FIRE DEPARTMENT, UH, OUR TENANTS, OUR OUR STAFF, UH, REALLY JUST, UM, PUT IT ALL OUT AS FAR AS JUST TRYING TO MAKE SURE WE HAD A MEMORIAL EXPERIENCE FOR, FOR OUR COMMUNITY.

SO REALLY, REALLY THANK YOU TO TO EVERYONE FOR THAT, AND ESPECIALLY TO ON OUR PUBLIC AFFAIRS TEAM AS WELL, UM, FOR DOING JUST AN AMAZING JOB, GETTING THE WORD OUT AND COORDINATING THE DAY FESTIVITIES.

AND THEN LASTLY, THE ECONOMIC IMPACT REPORT.

UH, SINCE WE LAST MET, WE ALSO HAVE RELEASED, UH, TO THE PUBLIC OUR NEARLY 9 BILLION ECONOMIC IMPACT IN THE REGION OF OUR AIRPORT AND SURROUNDING BUSINESSES.

AND, UH, WE DID, UH, ATTACH THE FULL REPORT IN THAT RELEASE AS WELL AS ON OUR WEBSITE.

AND WE ALSO HAVE A, A BROCHURE ON OUR WEBSITE, AND I BELIEVE WE PROVIDED YOU ALL COPIES THIS EVENING, BUT DEFINITELY, UM, HIGHLIGHTING THE SIGNIFICANCE OF OUR AIRPORT AND THE CONTRIBUTION AS A MAJOR CITY ASSET, UH, TO, TO OUR COMMUNITY AND TO OUR REGION.

IT WAS VERY IMPORTANT FOR US TO GET THAT MESSAGE OUT AND ALSO SEE NOT JUST THE, THE DOLLARS, BUT ALSO THE JOBS, THE JOBS THAT OUR PROVIDED, UH, IN RELATION TO OUR AIRPORT.

AND IT'S, YOU KNOW, OVER 40 SOMETHING THOUSAND JOBS.

AND SO WE'RE JUST REALLY PLEASED THAT WE'RE ABLE TO PROVIDE OPPORTUNITY, UH, FOR, FOR ALL AGES, UM, THAT, THAT, UM, UH, ARE IN OUR COMMUNITY AND, AND SURROUNDING AREAS.

AND SO WITH THAT, UH, THAT'S ACTUALLY A GOOD SEGUE, UH, FOR MONI CHE, WHO IS BELIEVED BEHIND ME TO TALK ABOUT OUR FINANCIAL UPDATE.

HE HAS A FULL PRESENTATION, UH, THIS THIS MONTH, WHICH IS A LITTLE BIT DIFFERENT FROM OUR PREVIOUS MONTH.

HE'S GONNA GIVE A YEAR A YEAR REVIEW.

THANK YOU.

GOOD AFTERNOON, COMMISSIONERS.

UM, WE'LL START OFF WITH THE COMMERCIAL FLIGHT ACTIVITY REPORT FOR SEPTEMBER, 2024.

SO STARTING OFF AT THE TOP LEFT, WE SEE THAT DELTA AIRLINES OPERATED WITH 90 LANDINGS, UM, SAME AMOUNT, UH, THEY HAD IN THE PRIOR YEAR.

HOWEVER, THEIR ACTIVITY GREW BY 29%, UM, IN TERMS OF THE EMPLOYMENT, AND THAT'S DUE TO THE LARGER AIRCRAFT THAT THEY ARE OPERATING, UM, WITH IN THEIR FLEET.

UM, AND THEN HAWAIIAN AIRLINES A SIMILAR STORY, HAVING 60 LANDINGS, UH, COMPARABLE TO WHAT THEY OPERATED LAST YEAR.

HOWEVER, THEIR LOAD FACTORS HIGHER LEADING TO HIGHER EMPLOYMENT NUMBERS, UH, 12% INCREASE OVER PAST YEAR, UH, IN 2023, THEY WERE IMPACTED BY THE MAUI FIRES.

AND SO, UH, THIS SHOWS A FULL RECOVERY BACK INTO THE NORMAL OPERATIONS DURING THAT, UM, TIMEFRAME.

AND THEN WE SEE SOUTHWEST AIRLINES SEEING ACTUALLY A CONTRACTION IN ACTIVITY IN TERMS OF THE LANDING.

HOWEVER, THEIR EMPLOYMENT NUMBERS ARE STILL CONTINUING TO INCREASE AS THE LOAD FACTOR INCREASES.

[00:20:01]

AND SO THAT'S LED TO LOWER NUMBER OF LANDINGS.

HOWEVER, IN EMPLOYMENT, NUMBERS STILL CONTINUE TO GROW AS, UH, THOSE PLANES ARE MORE FULL.

IN TOTAL FOR THE MONTH OF SEPTEMBER, WE SEE OVER 160,000, UH, EMPLOYMENTS.

UH, THAT'S A 5% INCREASE COMPARED TO THE PRIOR YEAR.

LOOKING AT THE YEAR TO DATE NUMBERS, UH, WE SEE THAT, UH, DELTA AIRLINES, UH, CONTINUE TO SEE THAT, UH, CONSISTENT INCREASE, UH, THROUGHOUT THE YEAR THIS YEAR, UM, LEADING TO A OVERALL 19% INCREASE SO FAR.

WE ALSO SEE HAWAIIAN AIRLINES, UM, OPERATING COMPARABLE NUMBERS, UH, TO WHAT THEY SAW LAST YEAR ABOUT A 1% INCREASE.

AND THEN, UH, SOUTHWEST AIRLINES CONTINUE TO SEE SIGNIFICANT, UM, GROWTH HERE AT THE AIRPORT.

UM, WITH OVER 1.4 MILLION EMPLOYMENTS, UH, COUNTED SO FAR FOR ABOUT THREE QUARTERS OF THE YEAR SO FAR.

UM, IN TOTAL, WE, WE'VE SEEN ABOUT 1.5, UM, MILLION IN EMPLOYS, UH, FOR THREE QUARTERS OF THE YEAR.

SO WE ARE ON TRACK TO, UH, GO OVER 2 MILLION THIS YEAR AND LIKELY, UM, BE A RECORD YEAR FOR THE CALENDAR YEAR.

AND SO, UH, THINGS ARE LOOKING WELL ON THAT END.

UM, MOVING DOWN TO THE AIR CARGO CARRIER SECTION, WE SEE THAT UPS SEEING A FEW, UM, LANDINGS LESS, UM, DUE TO JUST THE CALENDAR LAYOUT WHERE, UM, THEY DON'T FLY WEEKENDS.

AND SO, UH, 19, UH, LESS FLIGHTS IN SEPTEMBER COMPARED TO LAST YEAR, HOWEVER, THEIR CARGO TONNAGE IS SHOWING A DECREASE, UH, 19%.

THAT'S WHAT THEY'VE, UM, CONTINUED TO SEE AROUND, UM, THIS, UH, YEAR.

AND SO WE LOOK AT THE YEAR TO DATE NUMBERS, UM, YOU SEE A TOTAL 6% INCREASE SO FAR THIS YEAR.

UH, US HAS CITED THAT, UH, OVERALL CHANGES TO ECONOMY HAS LED TO, UH, LOWER CARGO TONNAGE PROCESS IN THE LONG BEACH AREA.

AND SO, AND THAT'S THE RESULT OF JUST, YOU KNOW, CHANGING CONSUMER TRENDS WHERE, UH, FOLKS ARE JUST RETURNING, UM, MORE TO SHOPPING IN PERSON RATHER THAN E-COMMERCE.

AND SO, UM, AT LEAST COMPARED TO WHAT THEY SAW DURING THE PANDEMIC YEARS.

AND SO THAT'S LED TO SOME OF THAT CARGO CHANGES.

AND SO, UH, WITH THAT, WE'LL MOVE ON TO THE FISCAL YEAR 2024, UH, YEAR END REVIEW.

SO IN YOUR PACKET, UM, SHOULD HAVE THE, UH, PRESENTATION.

SO, UM, GOING INTO THE PRESENTATION ON SLIDE TWO, UH, WE GIVE A OVERVIEW OF THE PRESENTATION.

WE'LL BE GOING OVER SOME FINANCIAL HIGHLIGHTS, AND THEN JUMPING INTO THE PRELIMINARY FINANCIAL RESULTS FOR FISCAL YEAR 24, UH, FOLLOWED BY, UH, SOME DETAILED REVENUE REPORTS, UM, REGARDING THOSE, UH, REVENUES, UM, AT THE AIRPORT.

AND THEN WE'LL TAKE A LOOK AT, AT THE OPERATING EXPENDITURES AND COST PER EMPLOYMENT METRICS.

AND THEN WE'LL ALSO GIVE A STATUS UPDATE ON SOME OF THE CAPITAL PROJECTS HAPPENING AT THE AIRPORT.

RIGHT? UM, SO ON SLIDE THREE, UM, WE, UH, PROVIDE SOME FINANCIAL HIGHLIGHTS.

UH, SO THIS YEAR HAS BEEN A TERRIFIC YEAR AS WE, UH, NOT ONLY CELEBRATED OUR 100 YEAR ANNIVERSARY, BUT WE ALSO RE UH, REACHED A RECORD YEAR OF PASSENGER ACTIVITY.

WE SAW OVER 4.1 MILLION, UH, PASSENGERS GO THROUGH THIS AIRPORT.

SO THAT'S IN PAYMENTS AND DE PAYMENTS COMBINED.

UH, THAT'S GROWING OVER 17% OF WHAT WE SAW LAST YEAR, BUT ALSO, UH, SURPASSING THE PREVIOUS RECORD IN 2018.

UM, AND WITH THAT RECORD, UH, NUMBER OF ACTIVITY COMES RECORD HIGH LEVELS OF, UM, UH, REVENUES.

UH, WE WERE ABLE TO GENERATE OVER $63 MILLION IN OPERATING REVENUES THIS YEAR, WHICH, UM, CAN HAVE COME AT A BETTER TIME, UH, FOR THE AIRPORT AS WE KNOW THAT THE ECONOMY HAS BEEN GRAPPLING WITH HIGH INFLATION, HIGH GROWING COSTS.

UM, SO WE'VE BEEN FORTUNATE THAT OUR REVENUES HAVE GROWN AS SIGNIFICANT AS THEY DID, UM, WHEN OUR OPERATING EXPENSES ARE ALSO GROWING, UM, AT A MODEST RATE.

AND, UM, WE'VE BEEN DEALING WITH THE LARGEST OPERATING BUDGET WE'VE EVER HAD.

AND BEING, UH, IN A GREAT POSITION TO FUND ALL THAT WITH, UH, THE GROWING NUMBER OF, UH, REVENUES WE HAVE.

UM, AS CYNTHIA MENTIONED, WE ALSO RELEASED AN ECONOMIC IMPACT REPORT THIS YEAR THAT HIGHLIGHTS THE $9 BILLION IMPACT OF THE LONG BEACH AIRPORT COMPLEX AREA THAT SUPPORTS OVER 40,000 JOBS.

UH, SO THE REPORT REAFFIRMS THAT THE AIRPORT'S ROLE AS A ECONOMIC ENGINE FOR THE AREA AND ALSO UNDERSCORES THE IMPORTANCE, UM, OF THE AIRPORT TO THE SURROUNDING BUSINESSES AND THE TOURISM IN LONG BEACH.

UM, THE NEXT BULLET POINT, UM, IS THE AIRPORT'S, UH, CREDIT RATING, UH, WHICH WE SEE THAT THE AIRPORT, UH, MAINTAINED A A THREE AND A MINUS CREDIT RATING.

UM, SO THIS IS A RATING THAT REFLECTS THE, UH, IMPROVING, UH, AIRPORT PASSENGER ACTIVITY NUMBERS AND AS WELL AS THE SOLID FINANCIAL RESULTS THAT WE'VE BEEN ABLE TO ACHIEVE.

AND THEN LASTLY, UH, WE

[00:25:01]

UH, THIS PROJECT IS THE FINAL COMPONENT OF THE AIRPORT'S PHASE TWO, UH, TERMINAL AREA PROJECT, UH, WHICH BEGAN, UH, BACK IN 2018, AND, UM, HAS A PRICE TAG OF OVER $125 MILLION.

SO, MOVING ON TO SLIDE FOUR, UM, HERE WE SEE THE PRELIMINARY, UH, FINANCIAL RESULTS FOR, UH, FISCAL YEAR 24, STARTING OFF AT THE TOP LINE.

UH, WE SEE THAT IN EMPLOYMENT PASSENGERS, UM, UH, IS 2,000,070 2058 FOR, UH, FISCAL YEAR 24, A 17% INCREASE FROM THE PRIOR YEAR, AS WE MENTIONED BEFORE.

UM, IN THE NEXT SECTION WE SEE, UH, OPERATING REVENUES.

UH, SO FOR ALL THE, UM, REVENUES THAT ARE TIED TO PAST YEAR EMPLOYMENTS, WHICH IS THE FIRST FIVE LINES, UH, WE SEE THAT REVENUE HAS GROWN, UH, SIGNIFICANTLY AS WELL, UM, COMPARED TO THE, UH, PASSENGER ACTIVITY GROWTH.

UM, SOME REVENUE CATEGORIES SUCH AS PARKING, UH, OPERATIONS HAVE SEEN, UH, REVENUES GROW EVEN MORE AS, UH, MORE PASSENGERS ARE USING THE PARKING OPERATIONS, AS WELL AS, UH, RECEPTIVE TO THE INCREASES THAT WE'VE, UM, UM, HAD IN THE PARKING RATES.

THEN MOVING ON TO THE, UM, AVIATION LAND RENTALS, WE SEE THAT, UM, CATEGORY GROWING BY 11%.

ALSO, UH, WE'VE SEEN, UH, MANY OF THE LEASE HOLES INCREASE, UH, AS A RESULT OF THE USUAL CIP, UH, CPI INCREASES.

BUT ON TOP OF THAT, WE ALSO HAD ONE TIME LEASE EXTENSION PAYMENT FROM ATLANTIC AVIATION THAT, UH, DROVE THAT NUMBER UP.

UM, THE ONLY CATEGORY THAT WE SEE SEE A, UH, A LARGE DECREASE OR ACTUALLY A DECREASE, UM, IS THE NON-AVIATION LAND RENTALS.

UH, SO THAT ONE, UH, DROPPED AS A RESULT OF THE, UH, ENDING OF THE MERCEDES-BENZ LEASE, UM, IN WHICH THEY WERE RENTING A PARKING LOT FROM THE AIRPORT.

UH, THAT AREA IS BEING DEVELOPED RIGHT NOW, UM, AND IN NEGOTIATIONS.

UM, AND SO WE'RE HOPING TO START GENERATING REVENUES AGAIN FOR THAT, UM, PARCEL, UH, THE OTHER REVENUES CATEGORY, WE JUST WANNA HIGHLIGHT THAT THAT'S SAW PROBABLY THE MOST INCREASES, UM, FOR THE AIRPORT.

UM, AND THAT IS LARGELY RESULT OF THE INTEREST INCOME THAT WE'VE SEEN, UM, AS INFLATION, UM, PROPS UP OPERATING EXPENSES.

UM, IT'S ALSO GENERATING, UH, MUCH STRONGER RETURNS FOR OUR REVENUE, OUR CASH ON HAND.

AND SO WE'VE SEEN A LOT OF INTEREST, UM, REVENUES COMPARED TO WHAT WE'VE SEEN PRIOR YEARS.

AND SO THAT'S, UM, GREAT.

IT'S PROBABLY NOT GONNA LAST LONG, UH, BUT WE'VE BEEN ABLE TO BENEFIT FROM THAT, UM, IN FISCAL YEAR 24.

MOVING ON TO OPERATING EXPENDITURES, UM, WE'LL GO IN THAT, UH, INTO THAT MORE THAN MORE DETAILS IN SUBSEQUENT SLIDES.

BUT OVERALL, A 10% INCREASE IN OPERATING EXPENSES, UM, GROWING TO NEARLY 46 MILLION COMPARED TO, UH, 41 MILLION THE PRIOR YEAR.

UM, KEEPING THOSE NUMBERS IN MIND, UH, ONCE WE NET OUT IT WITH THE, UH, REVENUES, WE SEE THAT THE OPERATING RESULTS IS ABOUT $17 MILLION, UM, POSITIVE FOR THE AIRPORT.

UM, AND THOSE REVENUES ARE REALLY CRUCIAL FOR US AS WE, UH, FUND OUR DEBT SERVICES.

AS WE, UM, UH, WRAP UP OUR PHASE TWO CONSTRUCTION AND F FUND ALL OUR CAPITAL PROJECTS, AS WELL AS BUILD UP OUR RESERVES.

AND SO, UM, MOVING ON TO SLIDE FIVE, UH, WE TAKE A LOOK AT UNEMPLOYMENT NUMBERS IN A LITTLE BIT MORE DETAIL.

SO HERE ON SLIDE FIVE, UH, WE SHOW A TWO YEAR HISTORY OF THE AIRPORTS AND EMPLOYS ON A MONTHLY BASIS.

UM, SO IF YOU LOOK AT THE LEFT SIDE, UM, YOU SEE THAT, UH, IN 2023, THE AIRPORT, UM, SAW SOME CHALLENGES WITH, UH, ITS EMPLOYMENT NUMBERS AS, UH, SOUTHWEST GRAPPLED WITH SOME SCHEDULING COMPLICATIONS, AMERICAN EXITED, UM, THE MARKET.

AND THEN, UH, FROM THERE WE SAW THE MAUI FIRES.

BUT, UH, SOUTHWEST CONTINUE TO GROW THEIR OPERATIONS, WHICH HAS LED TO FISCAL YEAR 24 SEEING, UM, ACTIVITY AT A, UH, HIGHER LEVEL, UM, AND, UH, MORE OR LESS, UH, CONSISTENTLY SAW THAT LEVEL ACTIVITY THROUGHOUT THE YEAR.

AND THEN REALLY WRAPPING UP THE, UH, END OF FISCAL YEAR 24 WITH A REALLY STRONG, UH, SUMMER TRAVEL SEASON, UH, WHICH HAS LED TO THAT RECORD, UH, YEAR OF PERFORMANCE FOR THE AIRPORT.

ON SLIDE SIX, WE TAKE A LOOK AT THOSE ACTIVITIES FROM A REVENUE STANDPOINT.

SO HERE WE CAPTURED, UM, THE REVENUES GENERATED BY EACH OF THE PASSENGER AIRLINES, UH, SOUTHWEST, OBVIOUSLY, UH, GENERATING THE LION'S SHARE OF REVENUES FOR THE AIRPORT, UM, WITH OVER 90% OF PASSENGER AIRLINES, UM, REVENUES COMING FROM SOUTHWEST, UH, THEY SAW SIGNIFICANT GROWTH AS THEY SAW THEIR, UM, ACTIVITIES GROW HAWAIIAN, ALSO GENERATING ABOUT 1.4 MILLION, UH, THIS YEAR, SLIGHT CONTRACTION FROM WHAT THEY GENERATED LAST YEAR.

AND THEN, UH, DELTA SING, UH, SLIGHT INCREASE.

ALSO.

MOVING ON TO SLIDE SEVEN, UH, WE TAKE A LOOK AT CONCESSION SALES.

AND

[00:30:01]

AND, AND, UH, JUST FOR CLARIFICATION, THESE ARE REVENUES TO THE AIRPORT.

UM, THE AIRPORT GETS A PERCENTAGE OF THE ACTUAL SALES FROM THE CONCESSIONAIRES.

SO YOU KNOW, THEY'RE GENERATING, UM, 30, $40 MILLION.

WE'RE TAKING ABOUT THREE TO $4 MILLION FROM THEM.

AND SO THAT'S THE ARRANGEMENT.

AND SO HERE, UH, THOSE REVENUES THAT GO TO THE AIRPORT, WE SEE THAT, UM, BY FAR THE FOOD AND BEVERAGE CATEGORY IS THE LARGEST REVENUE GENERATING OPERATION AT THE AIRPORT.

AND, UM, PROVIDES, UH, NEARLY, UH, THREE FOURTHS OF THE REVENUE, UM, FOR CONCESSION SALES.

AND THEN WE SEE ALSO RETAIL AND GIF, UM, SEEING A HEALTHY REVENUE STREAM THERE.

UH, VENDING, UM, ABOUT $15,000 IN REVENUES TO THE AIRPORT.

UM, IF YOU LOOK AT THE RIGHT HAND, YOU SEE THE, UM, PIE CHART, WHICH 99% OF THE, UH, REVENUES COMES FROM PARODIES ARE PRIME CONCESSIONAIRE THAT OPERATES THE FOOD AND BEVERAGE AND RETAIL OPERATIONS.

BUT, UM, FOR THAT SMALL SLITHER OF VENDING OPERATORS, WE SEE THAT, UH, THERE'S ABOUT, UH, SEVEN DIFFERENT, UM, UM, OPERATORS AT THE AIRPORT.

WE HAVE SMART CART THAT DEALS WITH THE CARTS, UH, UH, FARMER'S FRIDGE, WHO, UH, IS THE MOST RECENT, UM, UM, ENTRY INTO THE MARKET WITH THEIR, UH, VENDING OF, UM, PREPACKAGED FOOD.

WE ALSO HAVE FUEL RODS THAT PROVIDE, UM, FUEL, UH, PHONE CHARGERS, PREPAYING GOING, UH, THAT PROVIDES, UM, VENDING FOR, UH, TRAVEL, UM, ESSENTIALS.

AND THEN WE HAVE CONTINENTAL VENDING, JUST, UH, BASIC, UH, FOOD AND SNACKS, UM, UH, VENDING.

WE HAVE ATM THAT PROVIDES ATM SERVICES AND THEN MOONLIGHT VENDING THAT PROVIDES, UH, VENDING OF ART, UM, UH, WORK.

MOVING ON TO, UH, PAGE EIGHT, WE SEE CAR RENTAL REVENUES.

UM, AND ON THE CHART ON THE LEFT, WE SEE THAT, UM, BETWEEN THE FIVE, UH, VARIOUS, UH, RENTAL CAR COMPANIES, UM, HERTZ AND ALAMO NATIONAL LEADS THE PACK WITH, UM, GENERATING NEARLY A MILLION DOLLARS, UM, EACH FOLLOWED BY AVIS BUDGET AND ENTERPRISE.

UH, IN TOTAL, THE, UH, CAR RENTAL COMPANY SAW A GROWTH OF 13% IN, UH, REVENUES, UM, IN FISCAL YEAR 24, OVER FISCAL YEAR 23, WE SEE THAT, UM, ALAMO NATIONAL AND ENTERPRISE SAW ON THE, THE LARGEST GROWTH COMPARED TO WHAT THEY SAW LAST YEAR.

UM, ON THE RIGHT HAND SIDE ON THE PIE CHART, I THINK IT GIVES A REALLY GOOD ILLUSTRATION OF THE MARKET SHARE, UH, BETWEEN THE, UH, RENTAL CAR COMPANIES.

UM, IT'S PRETTY BALANCED WITH EACH ONE HOVERING CLOSE TO 20%, UM, EACH.

AND SO IT'S A PRETTY BALANCED, UM, MARKET FOR RENTAL CAR COMPANIES AT LONG BEACH AIRPORT.

ON SLIDE NINE, UH, WE TAKE A LOOK AT THE GROUND TRANSPORTATION OPERATIONS.

UM, AND SO HERE, UH, DIFFERENT FROM THE RENTAL CAR COMPANIES, WE SEE THAT, UH, TNCS, UM, ACCOUNT FOR THE LION'S SHARE OF ACTIVITY AT THE AIRPORT, UH, FOLLOWED BY TAXIS, AND THEN COURTESY SHUTTLES, WHICH, UM, SUPPORT THE HOTELS AND THEN OTHER GROUND TRANSPORTATION PROVIDERS.

UM, IN TOTAL, WE, WE SAW REVENUES OF ABOUT 1.8 MILLION, UH, FROM THE GROUND TRANSPORTATION OPERATORS.

THAT'S SLIGHTLY LESS THAN WHAT WE SAW PRIOR TO THE PANDEMIC, BUT, UM, THIS IS SORT OF WHERE THE MARKET IS MATURING, WHERE THE BALANCE BETWEEN ALL THE DIFFERENT MODAL TRANSPORTS ARE.

AND SO, UH, WE FORESEE THAT THIS IS HOW IT'S GONNA BE GOING FORWARD.

UM, IN TERMS OF THE MARKET SHARE, UM, OBVIOUSLY TNCS ACCOUNTING FOR THE MOST, UM, ACTIVITY, UH, BETWEEN THE TNCS, WE SEE THAT UBER AND LYFT, UM, SEEING A NORMAL BALANCE, UM, UBER, UM, BEING THE DOMINANT, UM, COMPETITION HERE IN, UM, THE LONG BEACH, UH, AREA, AND THEN FOLLOWED BY LYFT, UH, ACCOUNTS FOR ALMOST 40% OF THE ACTIVITY.

MOVING ON TO SLIDE 10, UH, WE TAKE A LOOK AT THE OTHER SIDE OF THE EQUATION WITH EXPENDITURES.

AND SO FOR, UM, SALARIES AND BENEFITS OF OUR DIRECT, UM, EMPLOYEES, UH, WE SEE THAT, UM, COSTS GREW BY ABOUT $2 MILLION.

UM, THAT'S THE RESULT OF US FILLING A LOT OF VACANCIES, YOU KNOW, HIRING THOSE CRITICAL POSITIONS TO CONTINUE MAINTAINING OUR AIRPORT.

BUT ON TOP OF THAT, WE SAW LABOR EXPENSES, UM, GROW SIGNIFICANTLY AS, UH, IT WAS A NEGOTIATION YEAR FOR THE UNIONS.

AND SO, UM, WAGES DID GROW, UM, MORE THAN EXPECTED, UH, FOR SERVICE AND SUPPLIES CATEGORIES WE SAW, UM, THAT CONTINUE TO GROW WITH, UM, INFLATION TAKING PLACE, BUT ALSO JUST MORE, UM, SUPPLIES BEING USED, EVERYTHING'S JUST COSTING MORE.

AND SO THAT'S LED TO, UH, THE GROWTH IN THAT CATEGORY.

UM, AND THEN FOR CITY SERVICES, WE SAW, UH, THAT AREA ALSO GROW SIGNIFICANTLY, UM, AND THAT'S CONTRIBUTED TO THE INCREASED COST OF PUBLIC SAFETY, WHICH IS LARGELY ALSO LABOR EXPENSES.

UM, BUT WE ALSO SAW FLEET, UH, EXPENSES GROW.

UM, CARS ARE JUST COSTING MORE.

AND PLUS WE'RE ALSO CONVERTING MANY VEHICLES TO, UM, ELECTRIC VEHICLES.

ON TOP OF THAT, WE DID TAKE DELIVERY OF

[00:35:01]

MOVING ON TO SLIDE 11, UM, HERE WE TAKE A LOOK AT THE AIRPORT'S COST PER EMPLOYMENT METRIC.

UM, AND SO, UH, THIS, UM, TABLE IS SHOWING THE FISCAL YEAR 23 NUMBERS, UM, BECAUSE THAT IS THE MOST AVAILABLE NUMBER.

UM, UNFORTUNATELY FISCAL YEAR 24 IS NOT AVAILABLE.

UM, OUR NUMBER IS NOT FINALIZED, SO WE'RE NOT ABLE TO ALSO GET THE NUMBERS FOR OTHER AIRPORTS.

BUT, UH, THIS, UH, TABLE DOES SHOW, UH, REALLY WHERE WE ARE, UM, IN THE MARKET, UM, COMPARED TO, UH, MANY OTHER AIRPORTS IN CALIFORNIA.

UM, HERE WE ARE HAVING CLOSE TO, UH, $12 IN FISCAL YEAR 23, UH, RIGHT BELOW OAKLAND AIRPORT, BUT, UM, ABOVE, UM, JOHN WAYNE AIRPORT.

UM, AND SO OUR, UH, COST PER EMPLOYMENT IS EXPECTED TO INCREASE, UM, UH, SLIGHTLY AS WE ENTER INTO FISCAL YEAR 24.

AND THEN CONTINUING TO GROW, UM, AS COST GROWS.

UH, COST PER EMPLOYMENT METRIC IS A VERY USEFUL METRIC FOR US TO COMPARE, UM, WHAT OUR OPERATING COSTS ARE HERE COMPARED TO OTHER AIRPORTS.

UM, BASICALLY WHAT AIRLINES ARE PAYING AIRPORTS FOR EACH EMPLOYMENT THAT THEY HAVE AT THE AIRPORT.

MOVING ON TO SLIDE 12, WE TAKE A LOOK AT THE CAPITAL IMPROVEMENT PROJECTS, UM, SCHEDULE.

UM, SO THIS LIST IS FOR THE PROJECTS THAT, UM, ARE NOT JUST COMPLETED, BUT ALSO, UM, IN, IN, UM, PROGRESS.

AND SO AT THE TOP, WE START OFF WITH THE CONSTRUCTION OF TAXI LANE U, WHICH WAS A FIVE AND A HALF MILLION DOLLAR PROJECT.

UM, AND THEN WE ALSO COMPLETED THE REHABILITATION OF TAXI LANE K, WHICH IS ABOUT A $4 MILLION PROJECT.

UH, THOSE WERE, UH, LARGELY GRANT FUNDED FROM THE FEDERAL GOVERNMENT.

UH, WE ALSO, AS MENTIONED BEFORE, UH, COMPLETE THE RENOVATIONS TO HISTORIC TERMINAL.

THAT WAS A $17 MILLION RENOVATION, UH, MUCH NEEDED FOR OUR HISTORIC TERMINAL AND, UM, HELPING PRESERVE THAT, UM, WONDERFUL BUILDING.

UM, AND THAT IS, UM, PART OF THE, UH, LARGER PROJECT FOR THE TERMINAL AREA IMPROVEMENT PROGRAM, WHICH WAS A $125 MILLION PROJECT THAT BEGAN IN 2018.

AND FINALLY, UM, CONCLUDING THIS YEAR, AND, UM, THAT LARGELY TRANSFORMED THE PRE-SECURITY AREA OF THE AIRPORT, AND, UM, HAS TRANSFORMED OUR AIRPORT INTO, UM, WHAT IT IS NOW.

UM, AND THEN, UM, WE ALSO HAVE HERE, UM, THE ENERGIZATION OF OUR SOLAR, UM, PANELS ON THE PARKING STRUCTURE.

SO, SO FAR SINCE MARCH WHEN IT, UH, WAS TURNED ON, IT HAS GENERATED OVER 2.2 MILLION KILOWATTS.

UM, AND THAT IS ESSENTIALLY, UH, FUNDING, UM, POWERING ABOUT 80% OF THE, UH, ENERGY UTILIZATION, UM, IN OUR TERMINAL AREA.

UH, WE ALSO, UH, MENTIONED THE TERMINAL ROADWAY IMPROVEMENT PROJECT, AS CYNTHIA MENTIONED, IS, UM, UNDERWAY RIGHT NOW.

UH, THAT PROJECT IS ABOUT $17 MILLION.

UH, IT'S PROGRESSING THROUGH AND, UH, WON'T BE COMPLETED UNTIL NEXT YEAR.

UH, AND THEN WE ALSO MENTIONED THE PASSENGER CONCOURSE IMPROVEMENT PROJECT, WHICH IS A, UM, EXPECTED TO BE A ABOUT CLOSE TO $20 MILLION, UH, REFRESH OF OUR, UH, PASSENGER CONCOURSE.

UM, RIGHT NOW WE'RE IN THE DESIGN PHASE, UM, WITH ABOUT A $2 MILLION DESIGN UNDERWAY RIGHT NOW.

MOVING ON TO, UM, THE FINAL SLIDE, UM, HERE WE WANNA RECAP, UM, THE PRESENTATION.

WE JUST WANNA MENTION AGAIN THAT IT HAS BEEN A REMARKABLE YEAR FOR THE AIRPORT.

WE WERE ABLE TO CELEBRATE OUR A HUNDRED YEAR ANNIVERSARY, UM, WHICH, UH, COMES AT A GREAT TIME WHILE WE ARE SEEING RECORD NUMBER OF PASSENGER ACTIVITY.

UM, WE'VE SEEN SONGS, FINANCIAL RESULTS AS WE SHOWED IN THE PRESENTATION, UM, WHICH IS, UH, COMPLETE, UH, DIFFERENT STORY FROM WHAT WE SAW A FEW YEARS AGO.

AND THAT'S GREAT BECAUSE, YOU KNOW, AT THE SAME TIME, WE'RE ALSO CONDUCTING THESE SIGNIFICANT CAPITAL PROJECTS AND WE'RE ABLE TO, UM, HELP FUND THE, UM, $125 MILLION PHASE TWO PROJECT.

UH, SO OVERALL THE AIRPORT'S, UH, FINANCIALS REMAIN STRONG.

UH, THE OUTLOOK IS, UH, VERY POSITIVE, AND WE CONTINUE TO LOOK FORWARD TO THE MANY GREAT YEARS AHEAD OF US.

AND THAT CONCLUDES THIS PART OF THE REPORT.

ALRIGHT, THANK YOU, MONIE.

WE'LL NOW ASK JUSTIN, COOK OUR NOISE OFFICER TO, UH, PRESENT THE, UH, SEPTEMBER NOISE REPORT.

GOOD AFTERNOON.

UH, LET'S SEE.

WE'RE GONNA DIVE RIGHT INTO PAGE THREE OF THE NOISE REPORT FOR SEPTEMBER.

THIS PAGE GOES OVER AIR CARRIER, UH, LATE NIGHT ACTIVITY.

UH, IN THE TOP, TOP TABLE YOU WILL SEE, UM, AIR CARRIER ACTIVITY FROM 10:00 PM TO 11:00 PM AND WE DIDN'T HAVE ANY, UH, IN SEPTEMBER, WHICH IS AN IMPROVEMENT OF TWO FROM LAST YEAR.

[00:40:01]

AND, UM, ON THE SECOND TABLE, YOU'LL SEE THIS IS FROM 11:00 PM TO 7:00 AM SO MORE SENSITIVE TIME PERIOD.

AND, UH, WE DIDN'T HAVE ANY, UH, ACTIVITY, UM, IN SEPTEMBER, WHICH IS AN IMPROVEMENT OVER ONE LAST YEAR AND ROUGHLY YEAR TO DATE, 53% LESS.

SO BOTH, UH, GREAT PERCENTAGES, UH, YEAR TO DATE.

GOING TO THE NEXT PAGE, THESE TABLES SHOW NOISE VIOLATIONS BROKEN DOWN INITIALLY FOR AIR CARRIERS AND GENERAL AVIATION.

UM, WE DIDN'T HAVE ANY NOISE VIOLATIONS BY AIR CARRIERS IN SEPTEMBER, AND WE HAD A TOTAL OF 25 FOR GENERAL AVIATION, UH, WHICH IS ABOUT A A 25% INCREASE, UM, FROM LAST YEAR AT THIS TIME.

UM, OVERALL YEAR TO DATE CHANGE OF, UH, OR CHANGE ABOUT 8%.

UH, WE SHOW THE MONETARY FINES, JUST KIND OF FOR YOUR INFORMATION.

IT'S ROUGHLY ABOUT 7% HIGHER YEAR TO DATE THAN LAST YEAR.

AND THEN, UH, WE PROVIDE OPERATIONAL TOTALS FOR, JUST FOR YOUR INFORMATION.

UM, SHOWING, UH, SEPTEMBER OF THIS YEAR COMPARED TO LAST YEAR, YEAR TO DATE, WE'RE, UM, ABOUT 8% HIGHER IN AIR CARRIER OPERATIONS.

12% HIGHER FOR GA, AND ABOUT 1% OR 2% FOR MILITARY.

UH, GENERAL AVIATION I THINK IS, UH, THAT CHANGE IS SLOWLY, UH, DECREASING ACTUALLY YEAR TO DATE.

ON THE NEXT PAGE, UH, IT LISTS THE, THE NOISE VIOLATORS, UH, THAT, UH, WE SENT OUT FOR THE MONTH OF SEPTEMBER.

UH, EACH DAY THE NOISE OFFICE ACTUALLY GOES THROUGH OUR, UH, OPERATIONS, UH, ONE BY ONE ACTUALLY.

UM, WE, WHILE THESE SEL VALUES ARE COMPARED KIND OF AUTOMATICALLY IN OUR SYSTEM AND KIND OF FLAGGED, WE DO STILL GO THROUGH EACH ONE BECAUSE WE'RE LOOKING FOR OTHER, OTHER VIOLATIONS SUCH AS, UM, YOU KNOW, UM, DOING TOUCH AND GOS PAST, UH, CERTAIN HOURS.

NEXT PAGE, THIS, THESE TWO TABLES REALLY COMPARE, UH, RUNWAY TWO SIX, RIGHT, AND TWO SIX LEFT DEPARTURES FOR PROP AND TURBOPROP ACTIVITY.

UM, YOU KNOW, THE FIRST GRAPH AND, AND KIND OF WHAT I, WHAT I WENT OVER LAST MONTH WAS THAT, UM, WE'RE SEEING THAT KIND OF DIVISION BETWEEN THE NUMBER OF OPERATIONS ON BOTH RUNWAYS KIND OF STABILIZE THE, THE DELTA DIFFERENCE.

UM, AND YOU COULD SEE THAT KIND OF, UH, IN AUGUST AND SEPTEMBER CLEARLY, BUT ALSO THE, THE RATIO IS, IS RELATIVELY THE SAME FOR THE MONTHS OF JUNE AND JULY.

SO ABOUT 70% OF THE, THE OPERATIONS ARE OCCURRING ON TWO SIX LEFT COMPARED TO, UH, TWO SIX, RIGHT, WHICH IS, IT'S BEEN PRETTY CONSISTENT OVER THE PAST FOUR MONTHS.

ON THE NEXT PAGE, WE HAVE, UH, OUR NOISE MONITORING DATA.

THE FIRST, UM, KIND OF DEPICTION IS ACTUALLY OUR AVERAGE MONTHLY CNEL VALUES FOR ALL 18 OF OUR SITES, UH, BOTH, UM, ENFORCEMENT SITES AND, AND NON-ENFORCEMENT SITES, UH, SHOWING WHAT THOSE VALUES ARE.

AND THEN THE TABLE DOWN BELOW BREAKS DOWN, UM, THOSE AVERAGES, UH, BY LOCATION, UM, BY MONTH FOR A PERIOD OF 12 MONTHS.

SO KIND OF GIVING YOU A HISTORICAL PERSPECTIVE OF THE NOISE VALUES ON A C AND EL METRIC BASIS.

AND THEY'RE ALL PRETTY, UH, PRETTY CONSISTENT.

AND LIKE I MENTIONED BEFORE, YOU KNOW, WE, WE LIKE TO SEE CONSISTENCY AND IF IT'S NOT CONSISTENT, IT USUALLY, UM, WARRANTS A LITTLE BIT OF INVESTIGATION OF WHY THAT'S NOT INCONSISTENT.

AND, UH, LISTENING TO THE AUDIO FILES OF SOME OF THE SITES, YOU'LL, FOR EXAMPLE, HEAR ON, ON HALLOWEEN, YOU'LL HEAR KIDS, UH, SCARE EACH OTHER AND, AND, AND IT ACTUALLY KIND OF INTERFERES WITH SOME OF THE ACTIVITY AND THE NOISE OF THE AIRCRAFT.

SO WE GO THROUGH EACH OF THOSE AND ACTUALLY DISSECT AND KIND OF REMOVE SOME OF THAT, UH, OTHER NOISE, UM, TO ENSURE WE'RE ONLY CAPTURING THE AIRCRAFT ACTIVITY

[00:45:02]

UM, I'M EXCITED TO KIND OF SHOW YOU SOME UPDATES TO THE NOISE COMPLAINT PORTION OF THIS.

UM, PER A RECOMMEND RECOMMENDATION BY, UM, A COMMISSIONER LAST, LAST TIME, WE ACTUALLY INCLUDED SOME HISTORICAL TOTALS FOR THE PAST 12 MONTHS IN THIS FIRST TABLE.

UM, AND THEN WE ALSO JUST, UM, FOR KIND OF A COMPARISON PURPOSES, SHOWED THE TOTAL NUMBER OF OPERATIONS IN THIS PURPLE LINE, UH, IN COMPARISON.

AND FOR THE MOST PART, UH, THE NUMBER OF OPERATIONS, UH, CORRELATES WELL WITH THE NUMBER OF COMPLAINTS THAT WE RECEIVE.

AND IT'S A LITTLE HARDER TO SEE WITH THE TOTAL, BUT IF YOU, IF IF YOU WERE TO BREAK IT DOWN BY SAY GA ONLY, YOU WOULD SEE IT'S, IT'S RIGHT IN LINE.

THE NUMBER OF GA OPERATIONS IS ALMOST PRECISELY CORRELATED TO THE NUMBER OF, UH, COMPLAINTS.

THE TABLE BELOW SHOWS THE, THE BREAKDOWN BY, UH, MONTH OF, BY MONTH, BY DAY AND DAY OF WEEK.

UH, THE INCREASES AND DECREASES ARE JUST ESSENTIALLY CORRELATED TO THE NUMBER OF, OF OPERATIONS THAT DAY.

SO IF YOU HAVE A, A DAY WITH, UM, SOME WEATHER, YOU, YOU LIKELY WILL HAVE, UH, LESS COMPLAINTS BECAUSE THERE'S LESS, UH, GA ACTIVITY ON THE NEXT PAGE.

WE SHOW, UH, AND WE HAVE HISTORICALLY SHOWED THIS GRAPH, UH, IT IS BY HOUR OF DAY.

UM, AND JUST ONE THING TO NOTE IN TERMS OF OUR NOISE ORDINANCE IS YOU WOULD LIKELY SEE IF WE DIDN'T HAVE A NOISE ORDINANCE, YOU WOULD LIKELY SEE WHAT OTHER AIRPORTS SEE, WHICH IS THAT, UM, COMPLAINTS, UH, THAT YOU DON'T SEE SUCH A FALL OFF, RIGHT? A RISE AND A FALL OFF.

IT, IT, YOU'LL SEE IT, UH, HIGHER COMPLAINTS IN THE, THE EARLY MORNING AND LATE NIGHT HOURS.

UM, AND SO IT'S NOT AS, AS LIKE A BELL CURVE, IT'S, IT'S A LITTLE BIT MORE FLAT.

AND THEN THE LAST ONE IS WE THOUGHT WE WOULD BE A LITTLE BIT MORE CREATIVE AND, AND SHOW, UM, COMPLAINTS BY ZIP CODE, NOT JUST IN A TABLE FORMAT, BUT KIND OF VISUALIZE IT.

AND, AND IN LOOKING AT THE PRINTED VERSION, I UNDERSTAND THAT WE MAY WANT TO INCREASE THE SIZE OF THOSE LITTLE, THOSE LITTLE NUMBERS, UH, IN A PDF, IT LOOKS FANTASTIC, UH, BUT, UM, SO WE'LL WE WILL GO AHEAD AND MAKE THAT ADJUSTMENT FOR, FOR NEXT TIME, BUT AT LEAST IT, YOU CAN SEE A DEPICTION OF WHERE THOSE ZIP CARD ZIP CODES ARE.