 little sound issues. Now we got video. No sound. No video and no sound for folks that are in the room. It looks like you're muted on Zoom. Can you hear ya? The harmony was on by mistake, but you have the video is on, so. There we go. Can you hear us now? Yes. Okay, so you can see us in here. Good job. Lou. Do you hear us okay, Joe? I can hear you perfectly. Thank you. Okay. We lost the sound again. We got it sound back. Yep. They can hear you. We lost Jeff though. We lost Jeff and we lost Jeff. We got an in-person Jeff right here. We can't hear you again. It's like it's muting itself. Cannot hear. Can you guys hear me? Yes. Off here. There we go. Cool. Yeah. Coming and going. Right. We should be all set now. Excellent. All right. So we are in public forum. And didn't I see something there? Oh, there it is. Okay. Well, do you wish to talk during public forum with us today? No, it's okay. I'll just be listening. Thank you though. Okay. All right. So seeing that. Did you want to say anything today? No. No. Okay. All right. So we will close out public forum. Move on to item four, which is the consent agenda. Do I hear a motion to approve the contents of the consent agenda? I'll move that. That's moved by Helen and seconded by Greg. Any comments or questions on the contents? All right. Hearing none. All those in favor. Please see the five and saying aye. Aye. Opposed. Any extensions. All right. We move on to item. Second five, which is action items. Action item is 5.1. Genitorial service contract. I'd be willing to entertain a motion. I'm going to report clients to city council. The execution of contract with Genitec services. That's outlined in our board package. I will move that. This week by Helen. Is there a second? Second. Second by great discussion to be left by next. Great. So another RFP process request for proposal that we submitted. Public layers are published. For new janitorial services. New contract at the airport. We bid this out late last year. And through awesome work with Jeff and Hannah. And a couple other folks that that were comprised of the panel. We did receive two bids back to qualify and bids back. And we're able to score both on. Quality experience. And of course, a major factor was cost of the. Of the contract itself. Through that scoring process. Genitec services was selected as the lowest qualified. Bitter on this. RFP. You can see the contract amount in the memo there, which the first year starting March. Of this year pending approvals. Would be just over $799,000 for the year for. Not just this terminal facility, but as you can imagine, that's the brand of the scope of work. We have other various facilities that we also. Use the services for this is a multi year contract, which will expire on June of 2026. And that will expire that last year because I wanted it to start recycling through on our fiscal years. Hence the expiration June 2026. 799,000 is the contract amount. There are also cleaning supplies and additional services. That would be reversed up to that additional cost of $240,000. One of the things that we want to start presenting as part of memos, too, is where this funding is coming from. You can see that in the memo and this, this is part of our own operating and maintenance budget, our normal budget, if you will, that is funded directly through our revenue sources. And most significantly through rates and charges through. So we're requesting your recommendation. For this new contract. It just clarifies the lowest price, not the lowest quality. Lowest quality. Yeah. Jan and tech is our current contractors. So they've done a great job. You know, they've had some challenges too with. With staffing, but we've worked really diligent with them to make sure. They're doing a very highly quality work. All right. If there's any questions for Nick on this topic. Nick doesn't mention. You mentioned that this was the same organization that you have last year. I didn't see the previous price of the conference on there. And I was just curious. If you have. Can I say, would you like me to address it please? So this price of $799,000, like, compared to what we're paying today, because the contract actually expired and we added the tech space and stuff. It's about $14,000 less. For the first year that was currently paying. So it's very much on par, but the second year don't be a little bit more. So very, very reasonable. So from budgets and. And they're, they're responsible for the entire airport. Is that right? Which includes the area. The garage and doing something simple with QTA and going over to, you know, some of our other facilities here. So like area. So it's mostly. Which they're here. All the time. And not, not every billing that we own it depends on what each negotiated contract and lease agreement is with those various buildings. But like, like Murray said, it's, it's most of our own facilities that we occupy. For the entirety of this building here, including some of the airline spaces, which roll into their, their rates to occupy. Thank you, Marie. Cause that was my second question that is, is there someone here? I know, you know, someone's airport experience from a customer client standpoint. Can be really impacted by my wife would rank. Airport terminates based upon that. Clearly. We'll celebrate. Well, I think this one would rank very highly. So she's never complained about this. And there's a lot of things that need to be done at night. Like that strut, shampooing the carpets, waxing the floors, those types of things that we don't do during the day. And the second year seems to be just. Right. Anything else on this topic? Right. Hearing none. All those in favor, please sign by saying aye. Aye. Post. Extensions. Gary's. We move on to item 5.2. So Northammer. So this is a combo action. So bear with me and I'm able to take a pause partly through. So it's two actions that we're going to propose at the same time, because they're directly related to each other. So the first part of that is entertaining emotion to approve and recommend city council authorized conveyance. Of the Northammer building. And 1150 port drive to better technologies and authorized mayor facility to execute bill of sale to affect that conveyance. Subject to the final review and approval by the city attorney's office. And also to approve and to recommend that the city council provides the leasing of the identified space at the airport to better technologies to optimize the mayor and this mayor. Of the city to execute this ground lease agreement subject to final review and approval by the city attorney's office. Doing your emotion to that. So I got second by Greg and discussion. Excellent. So this is a, this is another exciting one that you have Jeff. Yep. Jeff Glasberg's on the line as well. Jeff is one of our real estate consultants. That's helped us through various real estate and same transactions and incredible partner of the airport in city longterm partner. This just in real quick background. This is physically located just south of our terminal building. It's the first building that beta technologies have leased from the airport. This building, a little bit of history was scheduled to be demolished. The interior of the building, the majority of it was not able to be leased out because of the quality of the interior. And we were using proportion of the building for storage of equipment and snowmobile equipment, et cetera. And the history beta technologies through the approval process to release this building back in 2019 from us with the understanding that they were going to be taking it as is and putting $500,000 of tenant improvements into the building, which would remain a building. Since then beta, of course, as you've seen has grown, has expanded up now has two additional leases with the airport. The smaller general aviation lease at the Valley of West Island, as well as the large manufacturing site. And this particular building is going to work well by as their workers, their research and development and various other scope of work within the building. They have put $15 million into this building. They have completely gutted the interior out and truly changed the layout that this building no longer needs to be demolished. On our books, this was approximately $380,000 of value to the building, which of course is not the case any longer. Because of the improvements and the partnership that we have with beta technology, the request to, that's why there's two motions on this agenda, the request to sell the building to beta technologies and release the ground space underneath of there was a great partnership. And maybe one of the most important things for me was a net neutral revenue deal for the airport to make sure we're not losing any revenue associated with the cumulative pool of what we currently receive. The $500,000 on their original lease was credited as part of that original lease, meaning they did have multiple years of rent credit associated with that. That's since expired, so they were paying us. This new lease has a $380,000 credit on it associated with the purchase of the building. However, there's residual benefits that the airport received that were equal to or greater than that $380,000 including upgrading of parking facilities in the entire ramp in front of their, their angle, which essentially would have been on the airport to built for as part of the original deal. What we're asking for, of course, is the sale of this building over to beta technologies, releasing it at a net neutral revenue deal and also include parking revenue through the vehicles, which they currently have around 100 to 125 vehicles parked on our surface slots, making sure that that's charged properly and flexibly, meaning if we need that parking, we're going to reduce that parking from beta for our passengers, employees, vice versa, as well as additional landing fees associated with all of their aircraft, not just their electric aircraft, but also their general aviation training aircraft that they accomplish here at the airport. There's a couple of things on the lease term. This is a 30-year lease with two 10-year options. Just like our other facilities and other leases with beta, we are requiring a capital reserve account with this lease for the expiration, the demolition, the rehabilitation at the conclusion of the lease, whatever needs to happen, of course, in future decades, rent increases at a standard rate typically associated with CPI, although there is a minimum and maximum, and like I said, parking in aircraft revenue, aircraft landing revenues associated with this lease, not just at this facility but at the entirety of the airport. I have already brought this lease to board of finance. This was reviewed at board of finance on Monday night and it approved unanimously with the expectation that this was coming to the Air Force Commission. It was all published at the same time last week. The timing and the consistency of this particular lease and the board of finance meeting really, and the Fed and other, really required us to concurrently this board at the same time. Otherwise, we'd be looking at an additional month prior to getting us some food. The city council has not seen this lease in the full capacity. This is tentatively, depending on your vote tonight, this is tentatively going to city council on Monday night, the 12th at any distance. And again, I do have, there's, Jeff Glasberg is here too to help answer any questions in to fill in any polls that I might have left out there. I'm happy both of us are happy to take any questions. Chris, any questions on this? So just so I understand the $380,000 purchase price, right, comes from the valuation of the building prior to all of their capital. That's correct. Okay. And then the rent credit is essentially based on that as well, right? Correct. They paid $380,000, so they're putting that against the first five years worth of rent. That's correct. Yeah. Or whatever that time. Yeah, correct. Okay. And what is the dollar figure of each year of lease? We have almost one day less than the 30 year lease. Well, what was the last part? Well, I mean, it's a 30 year lease, but each year, what is the lease? What is the dollar figure? I think cumulative with, and Jeff, if you can add some detail in there, cumulative with the ground rent, parking revenue and the landing fees were estimating $150,000 to $200,000 or something like that. Okay. Today there are close to $170,000 and that stops. And that's where that debt revenue neutral which belongs to King. And that rental revenue will adjust over time based on changes in CPI. I can have a question about parking. Obviously, beta is a growing industry and it's very likely that they're going to be hiring more people. I think even in your memo or someone I've read someplace that they are still looking to hire 50 additional people, whatever it might be. Any ideas how that might impact? I mean, the additional parking, that's not going to come from our parking garage. That's going to be in other locations to understand that correctly. A couple of things. So the 125 spaces that are part of this lease is, and Jeff and I had pretty large conversations in the negotiations, is very important to the airport to be flexible because if we need it for our passengers or et cetera, we need that flexibility to reduce that number and to reload it if needed. If beta needs those additional spaces, let's say we reduce it by 50 spaces, they need 50 spaces. Right now, they need to relocate those spaces either at their manufacturing site location, which they have significant parking at that location and shuttle people over here. They have some alternates to use South Burlington's transportation networks like sidewalks, et cetera. In this lease, it is not on us to find those new parking spaces for them. The flexibility is written into the lease, so we're not on the hook for 125 locations. So you're comfortable with believing that it's not going to severely impact sort of the customer's experience in terms of finding parking. That's right, especially as their self manufacturing site continues to expand. They're not fully completed yet on the parking lots over there. So when that's fully operational, there's move there. Thank you. And of course, that's forecasted, right? I don't know exactly what they need. I have a question. I'm off. Thank you. I had the privilege, when I first got this, I didn't fully understand why this was happening. We have a lease agreement that has another, whatever, 15 or period of time on it. So maybe whether this is Nick or Jeff, I know I found it helpful to try and understand exactly why we were being asked to in essence change the contractual relationship. I do think it adds to that. I think that's a great question. Nick or Jeff is the right person to provide that explanation to the full commission. I think that would be helpful. Yeah, that's great. Yeah, Jeff. Yeah, please. I'm happy to do that. So the context here is beta is a growing business and a success story for Burlington and the region. So the first time that we had this equity raise to grow its business, it used that cash to make the improvements to the North hangers. Beta is now seeking to be able to get its cash out of the North hangers. To be able to use that to continue to grow its business. And what beta asked for was to put into action. So the first time that we had this equity raise, which was originally leased in 2019 under the same structure that the airport agreed to for the production facility as well as for the new hanger at the West Valley. And in both of those cases, the city provided a ground lease. So they were able to get their cash to build facilities on those pieces of ground. And under the terms of those ground leases, beta then has the option or the opportunity to sell and lease back their improvements so that they can sell those improvements to a financial intermediary, get their cash out of the terms agreeable to the city. Beta was asking to essentially do the same thing now with the North hanger. So that lease structure had not been in place previously. They came to the city with this ask. So that's an important factor for you to know is that this is in front of you because it's an ask from beta. This was not something that the airport is trying to be both responsive and responsible. And so in putting together a response to beta what we were seeking to do was use the limited tools available to the city to be responsible and come up with a structure that's essentially financially neutral to the airport, allowing to get their cash out and we essentially don't miss a beat. So that the rental stream to the airport is essentially equivalent. It's just comprised of different components under this new structure. The improvements revert to the city at the end of the lease term. There's a capital reserve requirement under the lease so that they maintain the building and that there's enough money at the end of the lease term should the city choose to want to remove the building there should be enough money in the capital reserve to pay for that. So that context it's a beta ask it's the city responding in a way that tries to use the variables and the tools that are associated with this particular transaction in a way that's creative but that does not expose the city to any new financial risk and is financially neutral to the city. Thank you, Jeff. I followed I think all the math on the revenue neutrality but the one piece I'm still not understanding is the sale for the 380 which I appreciate but I'm still not understanding how the city is by then extending the rent credit over the five years how that is deemed revenue neutral that's the piece. I get the gross the rent between current lease agreement and the gross is about equivalent when you factor in parking and landing fees and all that but I'm still not understanding the 380 and how that is revenue neutral. So the 380 and the 1 to the city to the airport. And the airport would then credit that back to beta over five years the first five years of the lease term. So the city is getting the $74,000 each year that's associated over that five years it's getting all that cash up front back out as preferred revenue that it's earning over the five years. But is it only because we get the building back at the end of the lease term or it's torn down where that becomes revenue neutral because where I'm looking at it we have an asset that today is worth 400 grand. We're exchanging that asset for cash but then we're giving them the cash back but is it because we get the building at the end of the term back where it becomes neutral or that's where I'm looking at it. That's where I'm looking at it. So both today and at the end of the term what I'd argue is that the city doesn't have an asset that's worth $400,000 that has an asset that was on its books at $383,000. The value of that asset is the revenue stream that the asset generate. And since we're trying to keep that value neutral to the city, the underlying value of the building should remain the same if it's based on the revenue stream. That's one. Two, it's not as though the city could recognize its book value for that building in any other way right now. The building is already subject to a multi-year lease that would run to $50,000 I believe under its current terms. So the city doesn't have a market of willing buyers at $400,000 to buy that building and not receive a rental stream. It's not another way to liquidate. Got it. I just add to that too while that's an important piece of the financial transaction part of the conversations with data is there were improvements made that equated to or exceeded that dollar value like the parking garage excuse me, vehicle parking rehabilitation and the apron rehabilitation. Those more requirements are part of the original lease but those were accomplished. So I just added back that report or less because there's no expenditures that we have put into this site because they've already done it. So the cost to us is definitely more than that $380,000 but we were able to negotiate that book value. Got it. So I will be supporting this. I appreciate the time both Jeff and Nick spent walking me through this complicated transaction. I think part of what I was struggling with is this is usually a conversation you have before you sign the lease. Not after everything's been papered and I was very much cynical. We're all cynical by life and I was trying to figure out how this is not perceived somehow as a gift but I appreciate when you really do dig down into the numbers and I also take I'm comfortable with it because I think it's important to make sure that when you sign the lease that building either is torn down or reverts back to the city which is exactly the same position we would have been in under the existing lease agreement. So I appreciate that being pointed out to me and again also walking me through and bringing me up the curve on this relatively complicated transaction. Thank you. How do you manage that? I mean if they're parking there every day and then next Tuesday there's a huge influx of people that want to park their car would you call them up and say whatever as the car get moved? Well both. Our relationship with data is very strong and we could make those requests however formally the lease does go into the details that we have to give 30 days notice those types of things. So there's trigger points that we have to follow to change those flexible parking spaces. 30 days notice doesn't sound real flexible to me in terms of if the parking road is full and I'm driving around looking for a place I mean yeah so this you'll manage it but I don't really understand but we get that. Prior to us using those locations this is the furthest location where parking garage we need to change procedures we need to change policy we need to change parking spaces in the garage change employee parking so there's multiple avenues prior to us having that. Okay. I can ask question I'm like Chip I'm not cynical by life. But I'm curious about one aspect of this and maybe it's beyond the scope of this but I was just thinking Jeff what you were saying about how data is looking to get its investment out of this building can you just talk a little bit about what that mechanism is and when they do that will somebody else actually own the building? Yes. In answer to your second question will someone else own the building potentially yes. So the structure is in place which allows them to do a sale lease back in the case of the production facility they defend another way to get their money so instead of selling to an intermediary a financial intermediary that would then lease the building back to them data found the import-export bank of the United States and took out a substantial loan on the building which it's allowed to do under the terms of the ground lease and got its cash out so that's one way that they could potentially deal with the Northanger as well another way is that they would sell the building to a financial intermediary or given that this is much smaller scale than the production facility there might potentially be a company investor or an insider who might play that role in acquiring the improvement and then leasing it back to beta at terms that make financial sense for the investor when they acquire it from beta they'd be paying cash to do that that's how beta would get its money at that time and then this lease agreement would transfer to the new owner of the facility so the ground lease agreement would be assumable by the new owner if it's an acceptable asignee the city has some rights to review and accept an asignee under that so I answered that question yeah the sale of these packages fairly common financing mechanism for a company that has a facility with a building and they don't they want to sort of get the cash out of that building that still has the rights to be in the building so they eventually sell the building that they own and then they lease it back from the same people that they just sold it to so they can get all that cash upfront in exchange for payments over time as opposed to not being able to tap that cash which is sort of trapped in the property so the person who buys it or the organization in essence either I know really supports the mission of beta and wants to provide some money for them to continue to grow well yes I mean they're also they're a profit maybe they'll make money on it but they also are in the sense of investor yeah I mean generally the other part we wouldn't enter into that transaction unless they thought the stream of cash flows was going to be reliable in nature the way I would describe this if you're wondering you know why why go through this why would data be looking to go through this is that it taps another vein of capital so they've spent all their time raising money in the venture capital markets for their business there's a subset of financiers who are just all about real estate who do these kinds of transactions day in and day out so it expands their universe of sources of money and allows them to find the real estate money to put into the real estate so they can keep their more expensive frankly venture capital dollars growing in their business so just to just to clarify a little bit more it's also possible that they could sell it to someone and vacate so let's make sure that that question is specific to the north hanger there are other protections in the sale lease back in the north hanger there's a component of the production facility that were unique to that there's something called a specific use right but for the north hanger for the north hanger yes they could potentially vacate and as long as the city is receiving all of the rent it's due under the ground lease another agreement the owner of the property is in compliance with the the property the owner of the property as to who could buy that or not yes that's the unacceptable I think sorry we wouldn't have the ability to sell but that leasing entity would also that leasing entity would also have to have Amazon warehouse in that facility right right and and obviously under that criteria of what can go in there is the criteria of what not only like functionally but security wise because it's really close to the terminal that's correct but inside the lease there's security protocols that we handle through our network security program here one other quick hypothetical and I don't know if Jack or maybe Chip might be able to answer this but obviously there is large storing of lithium batteries that are on that site or at least that's what it looks like I mean I provide there for today and they have these huge sort of white boxes and I looked on there and said lithium batteries and obviously that's their business so and I'm no expert in that but supposedly these do have potential for large explosions and as the landlord if unless they obviously did something that was unreasonable would we as the landlord be responsible for some sort of accident that occurred there we have to indemnification clauses insurance clauses everything standard in the lease agreement in the local fire marshal gets involved the regulations of storage of those lithium batteries which are by there in the white boxes not inside the building and then they have certain fire procedures for cause along with the tank and so from the fire department to respond to those so I would say directly those indemnifications clause should indemnify us from those environments good thank you all right commissioners anything else on this topic all right hearing none all those if they are please say hi are there any opposed any abstentions we move on to item six which is the construction update from where I guess just to chair before we're voting on both right there were two resolutions was that on both it was one really long resolution thank you to the report I provided you with the existing structure update or projects were in the middle of the closing out a dozen and adding three more projects to project closeouts and six additional applications totaling over $60 million for funding this year so I'm here for any questions but those are pretty much focused along with all the aspects we've been to the day here all right any questions for Larry thank you Larry one more I move on to item seven which is most compatible with the programs also from Larry and of course as part of this too there's not again much to add to the report phase one and phase two are substantially complete there was kind of two windows while there was three windows and for some reason the supplier only sent one so there's a couple windows hanging out there that store windows so so that's pretty much complete we're closing in for phase three we're closing in on the 50 homes for the application this year which will be another five or six million dollars for renovations this next year and it includes most of the homes in the 70 DNL line with a few giving in to Poliski with respect to the 65 decimal DNL line also we are meeting tomorrow to have a meeting to discuss the outreach portion as it will be coming to you for what we talked about last month that schedule for tomorrow with Nick and I and I think it's a good idea to really get out there because it'll be the news homes that come next because of what where they exist so that's all I have on that report hand . Thanks for that I suggest if you haven't already reaching out to our housing director and our communications director they'll be able to provide the information with community members and overcoming any language barriers identifying potential landlords things like that . Anything else for Larry or Hannah . We'll move on to item 8 . Item 8 is the financial . This month's report is reporting on the December financial results is what you have here it's the revenue the expenses that we have for December we have a sheet in there on the recovery the revenue recovery metrics the banking balances in the AIP that is our grant receivable report so year to date the highlights are so this is six months through our fiscal year we're halfway through we started in July first so December the six months we have our revenues here are about 14 million dollars our operating revenues are continuing to be higher than what we saw the prior year so just do the recovery since COVID we're most mostly seeing those higher revenues predominantly in the parking garage revenues and the commercial revenues and there's all the detail for all the revenues and let's see the revenues that we have on that recovery sheet are all above 100% with the exception of the PFC revenues the PFC revenues and the implements are tracking very close together so the PFC revenues year to date are about 94% which is similar to where our implements continue to grow and I know we see month over month that they're increasing so it's good to see that expenses for the year are about this is not so higher than last year this was planned predominantly because we have I mean we have increases in our operating expenses just that we're experiencing salaries and benefits and things like that which are driven by costs and are driven by new negotiations but we also have we're spending more in general on professional consulting services so we have a large project that's going on in the garage we're replacing all of the lighting, putting energy efficiency lighting in there and the fire alarm replacement it's a huge garage it's about the 18 month project but it's also it's over $2 million project for that 18 month so we're seeing higher repair savings cost to do that our cash as of December 2023 we had just under $4 million for operation operating account did not owe the city any money and then I have the AIP receivable report on there I have highlighted or a little asterisk I think for the we have projects that we're going to be closing out that we're actively working on trying to close out and so some of those we can't draw down those balances until we close it out and then we've been spending a lot of money that we want to be closing out getting the money back but other projects we've paid off our construction that we've just wrapped up like let's say in the November time frame so we go paying some of those bills and on our residential sound improvement program that's been moving along fantastic and so we've been paying bills on that and we'll be getting that money back shortly from the FAA so that is I'd be happy to entertain any questions that anybody has on this month's financial reports one quick call out it's a relatively minor thing but a call out to it anyways under the expense item you can see that there's been before there's a full balance remaining on our runway de-icing line items so we have time seen any expenses on that I know that's different now we just made some books on purchases but a quick shout out because Dave and his team both on the airfield and operations team are really drilling into how to use runway de-icing where to use it when to use it and how to save us some of these expenditures which is which is interesting this time of year to see that. It is it is not not an experience to show that I would normally be seeing some expenditures on that account already but we did purchase some de-icing so we will start seeing that no doubt we will be spending money on that because that's just how we're going to see it for safety first but so far and the only other item that I want to point out because I do have a footnote on the financial report at the end of the expenses of the bottom line I do always want to say this is our offering revenues and our offering expenses but if you look at our entire budget there are either items that we move on the budget particularly expenses that aren't going to show up on here because they're not offering good example of this money that you see here is not all available just going into the cash account we're making every single month we're putting aside upcoming monies for the upcoming bond payments that we're going to be paying we're making any capital that we're purchasing we did purchase some equipment that she already you know close to half a million dollars in the equipment we purchased that so you're not going to see them as a direct operating expense but it is a use of how we're using our money leases so we're using our money on that it's not going to be much bigger here so we just wanted to give you an idea of how what do we do with this money that we see here so we have operating revenues but they are we have them budgeted throughout our in other ways great commissioners any questions or observations for Marie all right we're all set thank you Marie and then she was also yours the f1 23 airport so you have proven this month's package we did receive in January our airport audit we had a good season there were no findings on the airport so that is always what we want to come out with I wanted to it's on documents and I want to kind of give you some ideas of especially depending on how familiar you are with audit documents you know they can be great reading and very interesting but I'm going to point out the things that are maybe the more like if you're going to spend time looking at it that you would that you'll get the most bang for your time and looking at it so I always sort of like to point out one of the things that we take a lot of we always take pride in our numbers and the numbers are you know drive everything in here and have to be accurate everything about how the year went whatever our balance sheet our income statement our statement cash flows but you know one thing we take a lot of time and putting together is it starts on page four it's called our management discussion and analysis and we write this so all of that there's I don't know five six pages I have maybe maybe there's a bunch of pages in here and we go through and we really want to explain kind of what happened over the years we take a lot of time to go through and take all of those numbers and all those pages what it actually means and bring that highlight those things and highlight highlight what it meant here at the year four I just if I can I'm just going to I've got a couple of tabs here things that I want to sort of bring out to you you know this is me trying to explain what this means to everybody anybody's watching and all of you so that highlight the important things so on page six if you're following along you know I always highlight like hey what was our net income before capital contribution so it kind of means how do we shake out the year what we brought in and after we paid a bunch of our things was two million dollars flat two point one million dollars last year it was a half dollar so that was certainly better another page that I really like I think is kind of looking at highlights is on page nine which is our historical revenues I really like to look at that because I think year over year it's got five years in front of you of course COVID through wonky things in there but it really sort of highlights how we're doing and you can see it a really easy snapshot it groups a bunch of things together as you know we're looking at airline revenues grouped together and our non-interline revenues CFCs so year over year 2023 had ended up 15.5 percent higher revenues in total over the prior year so you know when you talk about page I'm going to talk about the number this year on the audience on the page yeah audience yeah but I kind of like you know I kind of think like that's kind of a good point to give you a snapshot of what we're doing and how we can hear year over year so just to give you an idea on some of those revenues so our parking parking garage revenues we earned $1.4 million more in revenues in 2023 than we did in 2020 so that's a lot significant that was by far the biggest increase in these numbers or 26 percent growth in that one line our car rental concessions were $18,000 higher the prior year for 16 percent so you know just to give you some flavor our PFC revenues were about just under $300,000 higher than the prior year and our CFC revenues were almost $700,000 in the higher year the CFCs is a bit of an anomaly we did have enough for one year we charged the rates to each daily car rental of $6 instead of $4 actually we won't see it be like that this year but that would just sort of help with the operation and opening up the GTA I just thought you might want to know you know a little bit about what happened sort of the next item that I thought I would highlight for all of you is our liquidity on page 14 if you're looking at that that's a really good snapshot of our financial health so what do we have for cash we can see it across the board in 2020 it looks like in 2020 we had $14 million in our cash in our unrestricted cash but we only had $10 million in 2023 that might look bad but in 2020 we had taken up a revenue a revenue anticipation we wanted to make sure that we would be able to pay our bills given in the COVID and so that was $11 million we really didn't have it's an anomaly but all in all our total cash investments where all that money is in other accounts or reserves and other things that we maybe are required to do by thought that's interesting the whole thing is interesting to me but in lieu of time I just will sort of point out we do have our state we have a balance sheet which is fascinating our income statement these things are all really important to look at there's a lot of numbers up there so it can get a little overwhelming I think unless you're like me you'd love to look at the the only I'm glad you love to I chose the right and so then there's all these footnotes once you get through the financials another interesting thing is the state of the cash flows and that shows you where all the money that came in from what and all the money that got spent again I find it fascinating but you know something you can look at if you want all of our footnotes go into greater detail about the kinds of accounts that we have I also liked one that I like to look at when I look at other people's financial statements I like to look at on page 31 the long-term debt because I always think this year is very boring because it didn't change at all from 2023 to 2022 and that's just because we had we had refunded those bond payments that were due and we made our first actual bond payment on July 1st of 2023 so when we look at 24 let me say our overall long-term debt reduced again so you'll see that each and every year that will be reduced let's fully pay it off in fiscal year 3031 but those are the fascinating highlights to sort of take this report and try to bring a little of an understanding hopefully but I welcome to entertain any questions you can toss them right at me anytime either now or if you have a chance to look at this something doesn't make sense for you or you want to know a little bit more about why something is stated that way I always welcome you're a long leg I'll share with you which is the very last page Marie quickly went through it and this is a testament to Marie, her scale, her time that she puts in for many months as part of this audit report you can see all the check marks in no material weaknesses no findings for both our financial reporting and our PFC financials so this is a huge testament to Marie her detail oriented eyes and definitely definitely in the top she has been on this over many months if you were to estimate how many hours you spend on this how many is it that's one number she hasn't liked I'll just say I spend a little extra time here at the airport of everybody that would maybe see the last night I don't know about that I probably have some fair competition but this kind of here and getting getting this with other obligations or with other obligations I understand that that's why this is pretty intense I think you would find that for most any organization on their financial team would have experience with this as well that there are certain times of the year just there's a little more bubble and that's sort of how we look at it but she does his kind of thank you Marie first thank you for the presentation and also congrats to the team on such a clean audit report my question is on the page you ended on 32 could you explain I know what jumps out at me is a net pension liability of the 1.2 million which is a pretty material what happened in 23 to cause such a big addition you're looking at page 32 correct you said the pension obligation I'm looking at the net pension liability which was 1.4 million on July 1 of 22 there's a 1 point almost a 100% addition in 23 so that's a great question so the city has defined benefit plan there is actually an actuary report and there's a retirement board as well as is part of that and so what they do each and every year is they assess the assets that are held in trust that are part of this pension they also assess and imagine that this is pro rata I mean they do look at airport and they look at airport employees which are airport is we'll say class B employees under the pension plan there's class A which is fire police totally separate like a unique part of subgroup of people and there's part B which is everybody out so even Burlington Electric Department all of the city in school everything comes in under class B and so the actuarial's job is he looks at all these assets but he also looks at the police that are he does his mumble jumble without the stuff the actuarial do which is really complicated because they're trying to figure out they look at people's they look at everything from the age group that you have they look at how long all those people are there they look at when they think they'll retire you know all these averages so they look at the airports group of people so and they also look at the balance of the obligations I would say because salaries have been going up there were some union negotiations and there was I believe there was a change in the city chooses if you've ever read I've actually read the pension report if you've read it or look at that it talks about this rate of return and these assumptions making the calculate as all part of it so we this is just yeah they we are required years ago this is a newer requirement that this net pension probably the last five years or so I don't remember exactly who started doing it but then it gets rolled out and we get a piece of this that we believe over time that the airport will be charged with requiring employees pension labels so it changes each and every year yeah yeah so I spent a good part I spent over two years on the pension reform committee so this is near and dear but I and I have not read the report so I wasn't sure whether but it sounds like this may do and be due in part to a modification in the assume rate of return change I want to say it happened I think in 2023 for the rate of return that did make some differences but again it looks at the what is the overall obligation just knowing that salaries are going up in general that is going to obviously drive the anticipated payout at some point it also depends on how many people retire here all of that stuff they look at all of that yeah that is one area that is pretty complex and then they look at how the investments did so what is that unfunded obligation so there is some sort of what they think it will have to pay out and the city is not 100% funded in the retirement fund I forget exactly what it was done it has gotten better and better over time but you know there is some obligation as far as the airport that we have thank you anything else from Maria I am trying to echo it is great to see my line of work I do encourage everyone to read it not so much for the numbers but for the narrative this gives you a chance for even in other sections it puts the numbers in a way that it gets more use of funding if you are not a numbers person there is a lot of narrative here that you can read so I encourage you all to take a quick perusal through it and take a ride through it Jim Tan up again oh sorry Jim no alright so that concludes item eight item nine is the directors report from Nick I will keep it relatively brief I get excited and I can talk a lot and tell a lot about many different things but there is a couple of highlights in here and we did incorporate our passenger our operations and our parking garage which sticks now in this report or in the presentation real quick update and I apologize because you are going to have to see me in my living room in just a second here maybe in the video and I and I totally blame Jeff Jeff did an incredible job planning for and prepping for a all staff celebration and appreciation party which wasn't getting rid of the winter blues it was we can't wait for summertime and this was our beach party themed staff party employee celebrations we really thanks our entire employees you can see all staff there going through some of the longevity of our of our employees our average is just shy of nine years at the airport that's our average of just over 50 employees which is pretty incredible in the wide range of each one of our employees two in particular just across the 34 35 years respectively and Chip French down on the left there just across 34 years and Chip French has been here 35 years really cool celebration and that's in great part to Jeff and Jill and for putting that all together another cool exciting amazing inaugural flight that occurred last right was it last week? yeah it was last week a week ago from today so last week January 31st we celebrated the very first time Breeze Airways landed at this airport the very first time that particular type of aircraft landed at this airport which is an Airbus 220 in the very first time that plane with that airline well I shouldn't even say that that A plane went to Tampa so this was our very first inaugural flight with Breeze Airways very successful the two lower pictures Jeff again did a really fantastic job coordinating with Tampa International Airport Jeff and I flew down there we got to experience based on some of their recommendations the city of Tampa but they hosted a party down there that cake was made that's a real cake we ate that cake Tampa International Airport made that for us and celebrated down there as we as I made some of the announcements for the plane and other planes our team put together the stickers and we had some luggage Tampa and those our team you can see the picture I think they gave them out last time we're now creating our own in-house stickers we were able to hand those out we had about 80 passengers coming from Tampa to Burlington which is really I believe it or not 130 passengers flying for the first flight from a warm destination to a cold destination we had about 130 just shy of 130 people going down which means it was a full flight very rare breeze was very excited we still are breezes top low factors in their network for both the Tampa flight and what's coming up next week a week from tomorrow February 14th a week from today what is our Orlando first flight so they'll be here two times on Wednesdays and Saturdays for both Tampa and Orlando every single week and we're really looking forward to that I hope you saw on the news and the correspondence the day prior to a couple days prior to the inaugural Tampa flight breeze gave us a call Jeff and I were actually in Chicago meeting with United Airlines which was a fantastic meeting they are very happy with Burlington and are looking at expanding here in Burlington United Airlines while we're in the streets of Chicago breeze also called us and said you know what we haven't started there yet but your pre-sales are doing real good let's add two more flights so they're now flying starting May 30 excuse me May 33 a non stop to Raleigh Durham, North Carolina it's called a non stop to Raleigh direct to Jacksonville which means you're going to fly to Raleigh if that's your ticket you can get off or you can stay on the plane and continue to Jacksonville but it will land in Raleigh so it's really really exciting and we're tracking really good numbers with breeze airways and forecasting really high numbers of 30,000 and 50,000 additional passengers for the airport some of them are Raleigh Durham currently is a seasonal flight however they have it on a 10 month schedule so that's what they call seasonal in this particular case that's like three seasons yeah it's a three seasonal flight and that might change depending on how the sales go and what happens that's a long period of time so they'll consider looking at year on service specifically for the Raleigh Durham Tampa and Orlando R so that's breeze and then I'm going to hand it over to Jeff I just put a quick snapshot of his creative artwork there and he can talk about our upcoming event with Transon yeah I'd really like it to draw things rather than fly with numbers different creativity but we don't work for it in the county you don't want planes yeah right a couple weeks ago we started that transcend it'll be over in the airfield by Heritage and Beta and the Flight Academy we'll have food trucks we'll have a couple bands we'll have some static displays just to celebrate and watch the solar eclipse tickets are on sale now we sold about 100 so far which we're excited about we have a $5,000 sponsor that should be announced in the next couple of days with more to come and our goal is 600 tickets and we break even on everything that we've been doing for the eclipse to support everything and we're really excited about it we'll be giving some tickets away to our team it's got a lot of buzz WCAX will be doing a live broadcast here the hall of communications which is of AO and buzz they really want to be involved we've had over 900 people interested on it on Facebook just started doing some radio ads we're doing a trade with Vermont Public and they're going to be coverage on it as well so we're really excited the first time I think we'll really be able to stretch our wings in a large event but this might also also a good trial one because I know there's going to be larger events made in September air shows etc we can just kind of operationalize some procedures of security it's an all hands on deck type of event a lot of good parts but the buzz is there the people are coming, the plans are coming so we're going to take advantage of it 100 dollars a piece and glasses viewing glasses and if I can get to a certain sponsorship level we'll probably look at expanding not the food options but discounted or subsidizing a little bit that's all it's bubbling under our freedom and overall the concept of this solar eclipse in our region as I'm sure many of you have talked about in your various fields we're expecting a lot of people in the county we're expecting a huge buzz this is a partnership with Burlington City Arts and Hello Burlington Chamber along with lots of different entities we are sponsoring all of the glasses within the city of Burlington that are going to be handed out so we'll have the airport logo on 15,000 pairs of glasses although the forecasted it is that the county is going to see around 150,000 additional people coming to this area to watch this this is a small relatively small, it's big but it's a small space not physically but a small space to enjoy this with some of our partners we are working with the airlines on increasing flights during that week right now their ticket sales are going to be really good and most likely they're going to increase capacity for that entire week for us because they're expecting although really where we're saying and where Tim can help out with this is general aviation and vehicular traffic if you're outside of that totality area you're going to be driving in or flying in a small plane so we're expecting our no chance go ahead sorry I couldn't hear I couldn't hear very well where is the event going to be this is where we call the valley west apron okay yeah people can we fit there hundreds yeah it's a five acre parcel it's when we expanded and like where we did the pole for hope right the last one we did was over on the FedEx room for the pole the FedEx pole but it's actually a bigger area on the valley west apron not inclusive of where where the heritage is located but yeah yeah yeah so would you do like all the food trucks and stuff outside of the secure area and then have like everything available in the secure area everything is in the secure area everything is inside the airfield sorry everything is inside the airfield oh okay alright interesting awesome I just heard someone say that despite all the hype that Vermont is getting we have a three percent chance of being able to see it yeah well we don't control the weather forecast looks good I think we should have some sort of a virtual screen from somewhere else that can see it there are airlines that are advertising best lights to book today to get the specific side of the plane to watch the clips from the air that's really funny so what do they do hold oh they just do a circle or do a circle they can sell both sides but one time that's really funny but that's really cool so this is on the Burlington website I haven't seen it yet yeah our website our social media we're just starting to get things rocking and rolling from an advertisement standpoint cool one of the things that we might see is we have decided on the cost of the price because of course we need to supplement the expenses to the project so that's where we come up with the cost Jeff did a phenomenal job running these numbers he doesn't like numbers he's actually incredibly good at it yeah and it's to control the quantity we had 25 dollar too many people on that airfield we need to control so how much is the ticket 100? yeah fine enough and there's a limitation and eclipses have that's how many tickets you sell yeah right now I have it capped like around $750,000 and then we have sponsorship tickets that you know half of those will actually be used we're watching it and that's why we wanted it to be a celebration we understand the weather but Jeff did a really good job with the entertainment the trucks, the bands, the sponsorships the games no matter what it's going to be pretty exciting it's still going to be exciting yeah yeah that's another misconception flights do not stop the airport is still operational alright last couple of slides here I have a quick short look ahead we have a meeting in four weeks I'm speechless February month that timeframe I already talked about next week with the inaugural flight with Breeze we have some cool electric press release most likely press release coming out in the weeks ahead we have our peak season coming up or at least a portion of our peak season with February school vacation which is February 24th through the 3rd quick update on the picture Jeff myself Kathy Davis who is the president of the Mark Chamber and this is Mike Wong he is our consultant with Volair first development consultant this is in the United Airlines headquarters in Chicago in their break room in the 737 engine itself which is something I'd like to bring to you pretty cool space really good meeting and then on passenger statistics displaying it a little bit differently this month versus the spreadsheet here's some raw data as well as the graphic indication of where we were through December 2023 which is our latest updates we're still collecting on January numbers you can see starting but anyways the dark blue it should be darker blue you can see our numbers there the line graph there which unfortunately is too similar to the other color blue boat we group except yeah which is the 2019 number which makes it really hard to see but the darker blue if you can see that is very consistent and over many many times many many months last year I ended to get it last month that December with the wind down of Jeff blue in January we might see that little dip in the numbers which you see in the raw data over there just under a thousand a little bit more than a thousand less than past years from last December but we're going to see that start climbing back up again because the breeze flights March the Delta Airlines is bringing in a larger aircraft to the Atlanta destination and April American Airlines is nearly doubling our capacity at Philly airport so our airlines are ramping up much earlier than we typically see them you can see the the seasonality coming into the March April kind of stays flat here over here and then May June July we're going to start hopefully forecasting and seeing that in March and April so a couple months ahead it's going to be great from an operational standpoint again we're doing really strong operations meaning landings and take-offs this is a 10 year graph right here you can see we're now exceeding 100,000 operations per year this is through the end of calendar year 2023 you can see a little bit of dip in December over December of last year and when you run through those numbers you're really going to notice general aviation has a specific dip in there December is always dependent on the weather as we just talked about so you're going to see that type of activity what's those general aviation and local traffic so yeah good question so when you see 1, 2, 3, 4 categories air-to-air, air-to-air general aviation and military those are usually full stop end-up flight landings whereas low global traffic traffic is like you can touch the runway that's going to count as more preparation so when you go back when you end your flight you're going to still be kind of this that general aviation so if any landing and take-off is counted someone will do the touchy-goes and then go to a different airport but when we still count that it's an average so I assume they did this once you got it yeah a big part of that general aviation number is the data training and data operation and then the and the and the so since we're doing December-December we're not able to see the decline with JetBlue with the and since we didn't start Breeze until the end of January right we're not going to see the difference in that data yet right that's right you saw it a little bit in the December in the previous slide the December passenger numbers where you see a slight decline and that's a reflection of JetBlue reducing some of their operations and a reduction in their total numbers you're going to see it again in January with that what I'm predicting is going to be as small declines in the January numbers before the Breeze numbers comes in in February but you can also see it's not a significant amount on the right okay and then parking garage statistics this is our utilization rate which it has the 20-23 numbers in that and that is the I get it changes for the well it's easy to see because the 2023 number is this light blue line especially after July where consistently over 70% on average utilization of the garage with even November excuse me 80% average utilization this morning Marie and Anna where we were looking at the utilization we were at about 94% I think it was in our garage although we had to tweak that a little bit with reopening some spaces that we to the blue close winter that's going to be open by the end of the week to prepare for every vacation at school and what percentage is Canadian good question we can add that in there although there will be a nice asterisk at the bottom the scientific way that we study it is counting license plates otherwise we don't have that number but that's a good statistic typically we look at between 10% to 20% of Canadian travelers and of course that's season all of the warm weather which all of us sometimes want and that's all I have for you tonight all right anything else for Nick move on to item 10 which is commissioner items they didn't receive any advance oh go ahead Roman yeah I didn't write this time so I just wanted to bring up a quick comment maybe suggestion for the airport I came in from Philly Sunday afternoon and there was a small child playing around where the baggage comes out you know always a fascination right and I noticed that we have sort of like a little bit of a kind of a warning thing I sent Hannah a picture of him I think he not not sure what was going on he was in full costume with a with a cape lovely young kid but I was starting to actually really be concerned because he was putting his hands actually on the conveyor belt and the where the the belt is already moving and the metal meets really really dangerous right for a small kid and as I'm sitting there wondering like what to do while I'm about to witness a potential very bad accident you know I was thinking okay we don't we used to have presence at the information booth no presence not really anybody walking through that is sort of getting the fact this is really dangerous and so you know I finally decided rather than watch a potentially terrible accident I would just approach the dad and I actually just introduced myself as a commissioner and told him it was dangerous to have his hands on the on the belt and could he move just a little bit back and he was super gracious and it was totally fine but but it occurred to me that a sign about actually it is such a fascination for kids right what is happening behind that thing where the where the suitcases come out and I thought it might be a great idea to just have a warning for parents hey do not let your children be on touching sitting and I've seen it at other airports don't sit don't stand don't touch the the belt where the suitcases come out so just wanted to throw that out there thank you we'll take a look at that right away we always like to make sure we address those especially thank you anything else item 11 just follow up items we had no follow up items carry over are there any items that need to be put on here so remember to talk about them if you should need it you might I can get my hand quick enough before you skip this is really a question it's for Helen is this your last airport commission meeting Helen or will you be here for another because I don't want to miss the opportunity to thank you if this is your last well I I don't know actually I offered to stay on no one else wants to but that hasn't been determined and I actually just going to ask you when I don't we may go or the city of South Brompton makes other appointments in June so I don't know if this one goes through or if it's so it might be or it might not and in light of that uncertainty let me and I appreciate coming from the newest member of this commission it's probably a little hollow but it has been a pleasure to serve alongside you and as a Chittenden County and Burlington Commissioner thank you for everything that you've done not just for this commission but in all your roles over the course of the years and if you're back next month I'll do it again and I'll give the same statement thank you thank you thank you you're welcome I actually I would call in her we'll come over here and we'll have to go to the floor to wrap Wednesday so would you comment on that All good I think we can the other one that's our how our city may have moved for a while longer and then may be longer than that who knows all right so is this anything else not an item 12 which is a German do we hear moves. All right, is there a second? Second. Take my grade. All those 50-25 saying aye. Aye. Any thoughts we're hearing? There is. Thanks, everyone.