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AIRPORT ADVISORY COMMISSION MEETING SEPTEMBER 14, 2021 3:00 PM 2716 SPIRIT OF TEXAS DRIVE, ROOM 174-A AUSTIN, TEXAS 78719 (Note: The Mayor of the City of Austin Order No. 20210811-033 requires all individuals over the age of two to wear a face covering while present on or in City property unless expressly exempted in Section 2 of the order or by a City policy applicable to the premises or facility.) CURRENT BOARD MEMBERS: Eugene Sepulveda, Chair Scott Madole, Vice-Chair Jeremy Hendricks, Secretary Wendy Price Todd Vicky Sepulveda Chad Ennis Ernest Saulmon Jonathan Coon Billy Owens Frank Maldonado Raymond Young AGENDA CALL TO ORDER CITIZEN COMMUNICATION: GENERAL 2. APPROVAL OF MINUTES August 10, 2021 meeting. 3. WRITTEN STAFF BRIEFINGS a) July 2021 Financial Results. (Prepared by Rajeev Thomas, Deputy Chief, Finance) b) AUS Air Service Update. (Prepared by Jamy Kazanoff, Air Service Development) 1 Speakers signed up prior to the meeting being called to order will each be allowed a three minute allotment to address their concerns regarding items not posted on the agenda. 1. INTRODUCTION OF COMMISSIONER CHAD ENNIS 14. VERBAL STAFF BRIEFINGS a) “Updates on the Airport Expansion and Development Program (AEDP)” presented by Tracy Thompson, Interim Chief of Planning and Development, and Shane Harbinson, Deputy Chief of Planning and Development. b) “Recap of 2022 Department of Aviation Budget” presented by Rajeev Thomas, Deputy c) “Update on Cargo Development Project” presented by Mookie Patel, Chief Officer of Chief, Finance. Business and Finance 5. ACTION ITEMS None. 6. FOR RECOMMENDATION, AVIATION DEPARTMENT a) Approve a resolution finding the use of the Construction Manager-at-Risk method of contracting, as authorized by Subchapter F, Chapter 2269 of the Texas Government Code, is the project delivery method that provides the best value to the City for the Airport Development Expansion Program, Airfield Construction project for airfield improvements. (Note: MBE/WBE goals will be established prior to issuance of this solicitation.) a) Review of Commission Recommendations and Actions to discuss with appointing 7. NEW BUSINESS City Council Member. b) Future Agenda Items. c) Next scheduled meeting October 12, 2021 at 3:00 PM. ADJOURNMENT The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days before the meeting date. Please call Ammie Calderon, Aviation Department, at (512) 530-6605 for additional information; TTY users route through Relay Texas at 711. For more information on the Airport Advisory Commission, please contact Tracy Thompson at (512) 530-5023 or tracy.thompson@austintexas.gov. 2 2 AIRPORT ADVISORY COMMISSION ITEM 2. APPROVAL OF MINUTES August 10, 2 021 - MEETING 3 AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, AUGUST 10, 2021 The Airport Advisory Commission convened in a Virtual Regular Meeting on Tuesday, August 10, 2021. CALL TO ORDER Chair E. Sepulveda called the Commission Meeting to order at 3:04 p.m. Jonathan Coon Vicky Sepulveda Wendy Price Todd Raymond Young Ernest Saulmon Ammie Calderon Mukesh “Mookie” Patel Jamy Kazanoff Commissioners in Attendance: Eugene Sepulveda – Chair Scott Madole – Vice-Chair Jeremy Hendricks – Secretary Billy Owens Commissioners Absent: Frank Maldonado Aviation Staff in Attendance: Tracy Thompson Ghizlane Badawi Rajeev Thomas CITIZENS COMMUNICATIONS: Steve Khanoyan Brian Long Shane Harbinson None. 1. INTRODUCTION OF COMMISSIONER RAYMOND YOUNG Commissioner Raymond Young of District 2 was introduced to the Commission. 42. APPROVAL OF MINUTES a) The minutes from the meeting of July 13, 2021 were approved on Commissioner V. Sepulveda’s motion, Commissioner Coon seconded. Motion passed on a 6-0-0-4 vote. Vice Chair Madole and Commissioners Owens, Maldonado, and Saulmon were absent at this vote. 3. DEPARTMENT OF AVIATION STAFF WRITTEN BRIEFINGS a) Chief Executive Officer’s Report regarding the upcoming Environment Assessment, upcoming ABLE bonds meeting, an update on Housing and Planning zoning, and new art installations. (Prepared by Jacqueline Yaft, Chief Executive Officer) b) AUS Air Service Update. (Prepared by Jamy Kazanoff, Air Service Development) 4. ACTION ITEMS None. 5. FOR RECOMMENDATION a) Authorize amendments to three existing cooperative contracts with Carrier Corporation, Johnson Controls Inc., and Trane U.S. Inc. for continued chiller systems maintenance, repair, inspection, and installation for an increase of $4,675,000 for revised total contract amounts not to exceed $1,928,937 divided among the contractors. Aviation’s portion of the Amendment is $275,000. A motion to approve was made by Secretary Hendricks, Commissioner Coon seconded for a vote. Motion passed on a 4-1-2-3 vote. Vice Chair Madole, Secretary Hendricks, and Commissioners Coon and Todd voted yea. Chair E. Sepulveda voted nay due to the lack of MBE/WBE goals. Commissioners V. Sepulveda and Young abstained. Commissioners Owens, Saulmon, and Maldonado were absent for this vote. 6. DEPARTMENT OF AVIATION VERBAL BRIEFINGS a) “Updates on the Airport Expansion and Development Program (AEDP)” presented by Tracy Thompson, Interim Chief of Planning and Development, and Shane Harbinson, Deputy Chief of Planning and Development. b) “Updates on the AEDP Environmental Assessment” presented by Kane Carpenter, Environmental Manager. 5c) “Updates on the ACDBE Program” presented by Jolene Cochran, Program Compliance Coordinator, Edward Campos, Compliance Director, and Tamela Saldana, Compliance Officer. d) “June 2021 Financial Results” presented by Rajeev Thomas, Deputy Chief of Finance. 7. NEW BUSINESS Council Member upcoming meeting. a) Review of Commission Recommendations and Actions to discuss with appointing City · The Commission will receive a presentation on housing and development updates during an · Aviation is in good communications with airlines serving the South Terminal (Frontier Airlines and Allegiant Airlines) regarding the AEDP. These airlines will not experience a disruption in their service due to the facilities changes and continue to provide Austin with low cost flight options. · The Commission will receive future presentations on MBE/WBE goals for the AEDP. · The Commission received a presentation on the AEDP Environmental Assessment program. · June 2021 showed strong financial and passenger performance with enplaned passengers at 86% and revenue at 96% compared to June 2019. b) Future Agenda Items c) Next scheduled meeting August 10, 2021 at 3:00 p.m. ADJOURNMENT Chair E. Sepulveda adjourned the meeting at 5:01 p.m. The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days before the meeting date. Please call Ammie Calderon, Aviation Department, at (512) 530-6605 for additional information; TTY users route through Relay Texas at 711. For more information on the Airport Advisory Commission, please contact Tracy Thompson at (512) 530-5023. 6 AIRPORT ADVISORY COMMISSION ITEM 3a. DEPARTMENT OF AVIATION WRITTEN STAFF BRIEFINGS July 2021 Financial Results (Prepared by Rajeev Thomas, Deputy Chief, Finance) 7 MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: September 14, 2021 SUBJECT: Austin-Bergstrom International Airport (AUS) Update COVID-19 Financial Impact and July 2021 Financial Results July’s total passenger numbers were 280% higher than July 2020 which was significantly impacted by the pandemic. Enplaned passengers continue to increase and came in at 774,293 exceeding the 700k mark for the second month in a row since the start of the pandemic. July 2021 enplanements were at 94% of July 2019 enplaned passengers. For the 3 months (May-Jul 2021) AUS had averaged 84% of 2019 passengers. Please find attached the July 2021 financial results for AUS. This report outlines that July’s 2021 enplanements were 271.29% higher or 565,754 higher than July 2020. July 2021 enplanements Year to Date (YTD) are down 7.79% over prior year. Cargo volume decreased (7.44%) versus July 2020, but YTD cargo volume is 21.34% higher than the prior year. Excluding mail and belly freight, YTD cargo volume is up 29.86% over prior year. Operating revenues increased 41.30% over the prior year month or $3.8M, and lower by 3.6% or ($4.5M) July YTD. Year to Date revenues are 14.4% higher or $15.0M above budget. The lower revenues year over year were driven by lower landing weights, down YTD by (11.34%), as well as lower parking and ground transportation revenues. Lower revenues are also a result of lower food, beverage, and retail concessions as well as lower rental car revenues and other rentals and fees. Additionally, July’s financial results include a $4.8M relief credit granted to concessionaires which resulted in reduced revenue for the month. Our operating expenses are tracking lower than year-end forecasts even though we 8have ramped up our hiring and staffing levels to meet the increase in passenger levels and aircraft operations. The continued focus on operational efficiencies and expense savings has resulted in favorable YTD expenses to budget and current year estimates. Accordingly, July’s aviation related operating expenses were $8.5M favorable to the budget YTD, and 16.7% or $13.7M lower than prior YTD. The City of Austin allocated costs were in line with the airport’s budget and debt service costs were as forecasted. Overall, July 2021 net income was $595k versus ($2.1M) for July 2020. YTD net income is $2.6M, and $5.8M higher than prior year due to lower revenues ($4.5M) offset by $10.3M in favorable expenses. July YTD net income is $24M higher than budgeted before Cares Act due to higher revenues and lower expenses than budget. The Airport has received $27.1M YTD in Cares Act reimbursement funds for debt service in FY21. Attachments: July 2021 - AAC Financial Report 9CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 10 Month(s) ended July 31, 2021 FY 2021 Amended Budget Budget Seasonalized 10 month(s) FY 2021 CYE CYE Seasonalized 10 month(s) Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) Variance Fav (Unfav) % Variance Fav (Unfav) Y-T-D to Budget Y-T-D to CYE 1,208,114 125,320,092 1,006,762 104,706,827 318,429 126,286,406 265,358 102,783,660 100,665 119,753,945 (906,097) 15,047,119 16,720,000 37,697,000 54,417,000 21,107,271 4,487,041 11,069,553 11,467,350 5,215,748 1,750,000 14,598,015 69,694,978 59,744,143 5,391,192 25,641,391 8,046,651 98,823,377 507 5,412,895 7,077,844 10,034,715 15,470,348 8,471,750 46,468,059 435,740 6,328,330 1,879,259 166,126 350,754 307,939 301,150 3,793,554 13,562,852 14,695,064 32,035,052 46,730,117 17,340,971 3,706,571 9,422,201 9,481,472 4,287,487 1,507,614 11,223,633 56,969,948 46,481,781 4,306,635 20,195,915 5,692,649 76,676,980 423 4,510,633 5,898,155 8,362,263 12,913,873 6,286,585 37,971,931 363,117 5,273,608 1,566,049 138,438 292,295 256,616 250,958 3,161,295 11,302,377 17,426,753 43,679,223 61,105,976 18,337,134 2,019,053 11,026,850 11,553,113 5,215,748 1,897,783 14,812,320 64,862,001 57,553,087 5,053,065 26,068,947 4,681,210 93,356,309 504 5,412,895 7,077,844 10,034,715 15,459,157 8,471,751 46,456,866 435,740 6,328,330 1,879,259 166,126 0 307,939 301,150 3,793,554 13,212,098 14,490,550 36,443,122 50,933,672 13,701,080 1,548,229 9,189,042 9,627,594 4,346,457 1,581,486 11,590,743 51,584,631 44,689,409 4,059,885 20,465,483 3,330,088 72,544,865 420 4,510,633 5,898,155 8,362,263 12,904,266 6,286,585 37,962,321 363,117 5,273,608 1,566,049 138,438 0 256,616 250,958 3,161,295 11,010,082 19,436,192 42,734,532 62,170,724 19,699,391 2,651,984 11,273,456 5,739,289 4,720,102 1,164,559 12,233,775 57,482,556 43,781,210 3,564,866 17,402,850 3,443,830 68,192,755 423 4,510,633 5,898,155 8,362,263 12,904,132 6,286,585 37,962,190 363,120 5,273,600 1,566,050 138,438 0 256,620 250,960 3,161,295 11,010,083 4,741,128 10,699,480 15,440,607 2,358,420 (1,054,587) 1,851,255 (3,742,183) 432,615 (343,056) 1,010,142 512,608 2,700,571 741,770 2,793,065 2,248,819 8,484,225 0 (0) (0) 0 9,741 (0) 9,741 (3) 8 (1) 0 292,295 (4) (2) 0 292,293 32.3% 33.4% 33.0% 13.6% (28.5%) 19.6% (39.5%) 10.1% (22.8%) 9.0% 0.9% (90.0%) 14.4% 5.8% 17.2% 13.8% 39.5% 11.1% 0.0% (0.0%) (0.0%) 0.0% 0.1% (0.0%) 0.0% (0.0%) 0.0% (0.0%) 0.0% 100.0% (0.0%) (0.0%) 0.0% 2.6% 4,945,642 6,291,410 11,237,052 5,998,311 1,103,755 2,084,415 (3,888,305) 373,646 (416,927) 643,032 5,897,925 (164,693) 16,970,285 908,199 495,020 3,062,633 (113,741) 4,352,110 (3) (0) (0) 0 134 (0) 132 (3) 8 (1) 0 0 (4) (2) 0 (2) 34.1% 17.3% 22.1% 43.8% 71.3% 22.7% (40.4%) 8.6% (26.4%) 5.5% 11.4% (62.1%) 16.5% 2.0% 12.2% 15.0% (3.4%) 6.0% (0.6%) (0.0%) (0.0%) 0.0% 0.0% (0.0%) 0.0% (0.0%) 0.0% (0.0%) 0.0% N/A (0.0%) (0.0%) 0.0% (0.0%) 1 REVENUE AIRLINE REVENUE Landing Fees Terminal Rental & Other Fees TOTAL AIRLINE REVENUE NON-AIRLINE REVENUE Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees TOTAL NON-AIRLINE REVENUE Interest Income TOTAL REVENUE OPERATING REQUIREMENTS Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services GO Debt Service Fund 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money TOTAL Net Debt Service OTHER REQUIREMENTS Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll Additional Retirement Contribution CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund TOTAL OTHER REQUIREMENTS EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS TOTAL OPERATING EXPENSES Debt Service TOTAL REQUIREMENTS 158,854,288 125,951,287 153,025,273 121,517,268 117,165,028 8,786,259 7.0% 4,352,240 3.6% (33,534,196) (21,244,461) (26,738,867) (18,733,608) 2,588,917 23,833,378 (112.2%) 21,322,525 (113.8%) CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) TOTAL CARES ACT REIMBURSEMENT 0 (30,950,446) (30,950,446) 0 (37,971,931) (37,971,931) 0 (33,618,983) (33,618,983) 0 (37,962,321) (37,962,321) 0 (27,129,523) (27,129,523) 0 (10,842,407) (10,842,407) N/A 28.6% 28.6% 0 (10,832,798) (10,832,798) N/A 28.5% 28.5% EXCESS (DEFICIT) OF TOTAL AFTER CARES ACT (2,583,750) 16,727,470 6,880,116 19,228,713 29,718,441 12,990,971 77.7% 10,489,727 54.6% Note: Columns may not add to totals shown because of rounding ENPLANEMENTS July, 2021 (Month over Month) July, 2021 - Year-to-Date Passengers % Inc/(Dec) 774,293 3,973,303 271.29% -7.79% 10CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY21 (Jul 21) vs FY20 (Jul 20) Fiscal YTD - This Year vs. Last Year FY21 (Oct 20 - Jul 21) vs FY20 (Oct 19 - Jul 20) FY21 Jul-21 FY20 Jul-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance Fav (Unfav) $ Variance Fav (Unfav) % Variance 3,047,323 5,143,369 8,190,692 4,275,036 481,447 1,495,736 (2,782,368) 246,092 (269,931) 1,210,789 4,656,801 5,245 12,852,738 4,047,473 547,665 1,799,058 515,681 6,909,877 42 451,131 589,844 836,226 1,277,299 1,092,583 4,247,127 36,312 527,360 156,605 13,844 25,662 25,096 316,130 1,101,008 1,597,533 3,813,442 5,410,974 969,518 103,171 1,016,550 206,875 127,671 148,102 1,082,806 3,654,691 29,447 9,095,112 4,049,821 326,875 1,696,083 333,796 6,406,574 0 450,700 589,769 836,173 1,401,081 474,100 3,751,824 38,282 479,138 151,494 29,543 17,126 26,436 283,281 1,025,300 1,449,790 1,329,928 2,779,718 90.8% 34.9% 51.4% 3,305,518 378,276 479,186 (2,989,242) 118,421 (418,033) 127,983 1,002,109 340.9% 366.7% 47.1% (1445.0%) 92.8% (282.3%) 11.8% 27.4% 2,348 (220,790) (102,975) (181,886) (503,303) (42) (431) (75) (53) 123,782 (618,483) (495,303) 1,970 (48,222) (5,111) 15,699 (8,536) 1,340 (32,849) (75,709) 0.1% (67.5%) (6.1%) (54.5%) (7.9%) N/A (0.1%) (0.0%) (0.0%) 8.8% (130.5%) (13.2%) 5.1% (10.1%) (3.4%) 53.1% (49.8%) 5.1% (11.6%) (7.4%) FY21 YTD Jul-21 19,436,192 42,734,532 62,170,724 19,699,391 2,651,984 11,273,456 5,739,289 4,720,102 1,164,559 12,233,775 57,482,556 43,781,210 3,564,866 17,402,850 3,443,830 68,192,755 423 4,510,633 5,898,155 8,362,263 12,904,132 6,286,585 37,962,190 363,120 5,273,600 1,566,050 138,438 256,620 250,960 3,161,295 11,010,083 FY20 YTD Jul-20 21,329,270 41,733,175 63,062,445 21,043,311 3,666,237 11,864,328 6,493,768 2,910,466 1,899,757 12,570,443 60,448,310 47,502,877 4,915,455 19,848,368 9,597,110 81,863,810 0 4,507,800 5,898,069 8,289,942 13,247,504 3,378,700 35,322,015 382,820 4,791,380 1,514,940 295,426 171,260 264,360 2,832,810 10,252,996 (1,893,078) 1,001,357 (891,721) (1,343,920) (1,014,253) (590,871) (754,479) 1,809,636 (735,199) (336,668) (2,965,754) (666,150) (4,523,625) 3,721,667 1,350,590 2,445,518 6,153,280 13,671,054 (423) (2,833) (86) (72,321) 343,373 (2,907,885) (2,640,174) 19,700 (482,220) (51,110) 156,988 (85,360) 13,400 (328,485) (757,088) (8.9%) 2.4% (1.4%) (6.4%) (27.7%) (5.0%) (11.6%) 62.2% (38.7%) (2.7%) (4.9%) (86.9%) (3.6%) 7.8% 27.5% 12.3% 64.1% 16.7% N/A (0.1%) (0.0%) (0.9%) 2.6% (86.1%) (7.5%) 5.1% (10.1%) (3.4%) 53.1% (49.8%) 5.1% (11.6%) (7.4%) (24,201) 3,757,626 (82.2%) 41.3% 100,665 119,753,945 766,815 124,277,570 Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue Non-Airline Revenue Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees Total Non-Airline Revenue Interest Income Total Operating Revenue Operating Requirements Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services Total Operating Expense Debt Service GO Debt Service Fund 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money Total Debt Service Other Requirements Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Total Other Requirements SURPLUS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) Total CARES Act Total Requirements 12,258,012 11,183,698 (1,074,315) (9.6%) 117,165,028 127,438,821 10,273,793 8.1% 594,726 (2,088,585) 2,683,311 (128.5%) 2,588,917 (3,161,250) 5,750,167 (181.9%) 0 2,598,335 2,598,335 (844,867) 0 (844,867) (844,867) (2,598,335) (3,443,202) 1.00 N/A 407.5% 0 (27,129,523) (27,129,523) (2,588,455) (3,647,210) (6,235,665) (2,588,455) 23,482,314 20,893,858 1.00 (6.44) (335.1%) TOTAL SURPLUS (DEFICIT) AFTER CARES ACT (2,003,609) (1,243,718) (759,891) 61.1% $ 29,718,441 $ 3,074,415 $ 26,644,026 866.6% Note: Columns may not add to totals shown because of rounding 11 AIRPORT ADVISORY COMMISSION ITEM 3b. DEPARTMENT OF AVIATION WRITTEN STAFF BRIEFINGS AUS Air Service Update (Prepared by Jamy Kazanoff, Air Service Development) 12 September 2021 Air Service Snapshot As the Summer and Labor Day are behind us, air travel moves into an annual transformational period with slower leisure travel and a return to business travel. With the nationwide rise in COVID-19 cases, companies slowing the return to offices and continued staffing shortages - airlines are increasingly cautious about Fall demand. Most carriers filed aggressive schedules for the upcoming months but have started to trim capacity in recent weeks. Airlines will also start to back-off transatlantic capacity as the EU recommends that member states reinstate some restrictions on visits from the U.S. According to Bank of America, corporate bookings are now down roughly 60% compared to 2019 levels and continuing to stagnate. The chart below shows how COVID-19 has affected AUS capacity with year-over-year change in seat capacity through March 2021, and then 2019 comparisons starting in April. Year-over-year capacity recovered slightly during last summer, then plateaued at down 50% to 60% and is now showing further recovery from March onwards. October and November 2021 schedules have mostly been adjusted by all carriers and some have even adjusted schedules through early January 2022. Based on currently filed schedules, capacity will be slightly above 2019 levels in September climbing even higher in October. In fact, most domestic carriers have restored capacity to 2019 levels except for JetBlue, Frontier, Spirit, Sun Country and United. 13The route map below provides a snapshot of current air service at AUS. Highlights of recent air service announcements/developments include: • Air Canada will now return to AUS on Oct. 2 with 5-6 weekly flights, increasing to daily service on Oct. 28 and double daily service tentatively on May 1, 2022 • KLM has loaded AMS service for sale effective March 28, 2022 with 3/week on the 292-seat A330-300 • British Airways could resume service Oct. 4 at the earliest; Lufthansa could resume Oct. 31 at the earliest; WestJet is scheduled to return on May 1, 2022 • Aeromexico resumed daily nonstop service to MEX on July 2 • VivaAerobus announced year-round service to MTY and seasonal service to MEX which was supposed to launch June 19 with 2/week but due to the FAA downgrade of Mexico to Category 2 for aviation oversight and safety, that may be postponed for 4-6 months • Southwest service to OKC starts on Oct. 7 and LBB will be restored earlier on Oct. 10 • American this Fall will add 10 new domestic markets (CVG, ELP, IND, JAX, MCI, OKC, RNO, SJU, STL & TUL) and 4 new international markets (CUN, LIR, PUJ & PVR) up to 75 daily flights; will serve ASE, DEN & RSW for the holidays • Allegiant announced new service to the following markets in November with the start of the new base: AMA, FSD, PVU, SDF, SGF, SNA & TUL; also announced new service to PBI & PGD to start in Nov. • Alaska will serve PSP 5/wk from November 19 – April 18 • Spirit MSY & ORD scheduled to return in January 2022 New markets that receive incentives include AMA, AMS, ASE, BUR, BZN, FSD, HNL, JAX, LIR, MEX, MTY, NAS, OKC, PUJ, PVR, PVU, RNO, SDF, SGF, SJU, SNA, TUL & XNA. 14AUS capacity shares by airline in September 2021 are somewhat similar to September 2019 except that American’s capacity share is up 7 percentage points due to the new domestic and international routes starting this Summer and Fall. Alaska and Southwest’s capacity shares have increased as well as recently announced service has started this summer. Delta’s share has increased as well as it restores capacity beyond 2019 levels. Shares will adjust further as additional new American and Southwest service is launched this Fall and the Allegiant base opens in November. 15 AIRPORT ADVISORY COMMISSION ITEM 6a. RECOMMENDATIONS Approve a resolution finding the use of the Construction Manager-at-Risk method of contracting, as authorized by Subchapter F, Chapter 2269 of the Texas Government Code, is the project delivery method that provides the best value to the City for the Airport Development Expansion Program, Airfield Construction project for airfield improvements. (Note: MBE/WBE goals will be established prior to issuance of this solicitation.) 16City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 21-3042, Agenda Item #: 10/14/2021 Posting Language Approve a resolution finding the use of the Construction Manager-at-Risk method of contracting, as authorized by Subchapter F, Chapter 2269 of the Texas Government Code, is the project delivery method that provides the best value to the City for the Airport Development Expansion Program, Airfield Construction project for airfield improvements. (Note: MBE/WBE goals will be established prior to issuance of this solicitation.) Lead Department Capital Contracting Office Managing Department Capital Contracting Office Prior Council Action: N/A Fiscal Note A Recommendation for Council Action with the not to exceed contract amount for the resultant contract will be presented to Council once the Construction Manager-at-Risk selection has been completed. Purchasing Language: This request is for Council to authorize the use of the Construction Manager-at-Risk; therefore, no solicitation has yet been initiated. For More Information: Inquiries should be directed to the City Manager’s Agenda Office, at 512-974-2991 or AgendaOffice@austintexas.gov. NOTE: Respondents to this solicitation, and their representatives, shall direct inquiries to Rolando Fernandez, 512-974-7749 or Beverly Mendez, 512-974-3596. Council Committee, Boards and Commission Action: N/A Additional Backup Information: State Statute governs construction procurement for municipalities. The standard method of contracting used for construction services is competitive bidding where the contract is awarded to the lowest responsible bidder. Texas Government Code Chapter 2269 allows for methodologies alternate to low bidding method which may provide the best value to the municipality. These alternate methodologies include: Competitive Sealed proposals, Construction Manager- at-Risk, Design-Build, and Job Order Contracting. Texas Local Government Code Section 252.022(d) allows the City to adopt and use an alternative method such as City of Austin Page 1 of 3 Printed on 9/8/2021 powered by Legistar™ 17File #: 21-3042, Agenda Item #: 10/14/2021 Construction Manager-at-Risk (CMR) under Chapter 2269 of the Texas Government Code if such a method provides a better value for the City. The CMR method is a project delivery method where the City will contract with an architect/engineer to perform design services and separately contract with a CMR to perform preconstruction and construction phase services. The role of the CMR goes beyond performing general contractor services. The CMR is under contract early in the design process to perform key preconstruction phase services such as collaborating with the City and the design team on scope and constructability and to optimize the design and control costs and budgets, and to provide quality assurance-quality control. After design, and before the CMR begins construction, the City will negotiate and execute a Guaranteed Maximum Price for the remainder of the work, including actual construction. A CMR firm will be selected by a City-staffed evaluation panel that will evaluate and score proposals based on published evaluation criteria to determine the highest ranked proposer. As set forth in Government Code 2269, the City of Austin will select a CMR firm that will provide the “best value” to the City for preconstruction and construction services for the Project. This project is part of the Airport Expansion & Development Program (AEDP) and will help to meet the needs of the flying public. The project may include Taxiways, Airfield Roadways, aircraft rated bridges, storm water improvements, utilities and pavement improvements, and updates to the airfield lighting and signage systems. At the Austin-Bergstrom International Airport (AUS), the Airfield conveys arriving and departing aircraft from the runways to various areas. This airfield project requires close collaboration between airport staff, Design Consultants, and Construction Manager who have successfully constructed Airfield Taxiways, Bridges, Civil utility construction and airfield electrical design, and related airfield infrastructure, in an operating airport environment. The complexity of the project requires experienced contractors that are specialized in construction of airports with specialized Federal Aviation Administration (FAA) design criteria and approved FAA materials. The complexity of the design and construction is further complicated by the coordination with multiple stakeholders including, but not limited to, airlines, airline support services, fixed based operators, federal, state, and local agencies, utilities, City staff and management across multiple departments, and the flying public. The designers and contractor will need to keep critical utility systems working for the FAA Air Traffic Control Tower, Aircraft Rescue and Fire Fighting Station (ARFF), Airport wide water quality conveyances, and airport security systems. This project requires close collaboration between multiple professional design and construction teams to be successful in a busy airport environment. This project will require detailed construction phasing plans to minimize operational impacts and provide safety on the active airfield in a federally regulated, secure environment. This project will allow AUS to address the needs of the flying public. The funding for this project will be partially provided by FAA Airport Improvement Grants. Guaranteed Maximum Price (GMP) packages will need to be developed in accordance with grant cycles. The remaining portion of the project will be funded through airport bonds. The estimated construction budget for this work may be up to $130,000,000 with an anticipated construction start in 2023. A delay in authorization of the methodology will result in a delay in the issuance of the solicitation and will affect the ability to meet the needs of the flying public through the Airport Expansion & Development Program (AEDP). This solicitation and evaluation process is approximately six months. City of Austin Page 2 of 3 Printed on 9/8/2021 powered by Legistar™ 18File #: 21-3042, Agenda Item #: 10/14/2021 Strategic Outcome(s): Safety, Government That Works for All, Mobility City of Austin Page 3 of 3 Printed on 9/8/2021 powered by Legistar™ 19