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Airport Advisory Commission – Dec. 14, 2021

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AIRPORT ADVISORY COMMISSION MEETING December 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.) 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. CURRENT BOARD MEMBERS: Eugene Sepulveda, Chair Scott Madole, Vice-Chair Jeremy Hendricks, Secretary Wendy Price Todd Vicky Sepulveda Bakari Brock (nominated) Ernest Saulmon Jonathan Coon Billy Owens Raymond Young Chad Ennis AGENDA CALL TO ORDER CITIZEN COMMUNICATION: GENERAL 1. APPROVAL OF MINUTES October 12, 2021 meeting. (Note: November 9, 2021 meeting was cancelled.) 2. WRITTEN STAFF BRIEFINGS a) September and October 2021 Financial Results. (Prepared by Rajeev Thomas, Deputy Chief of Finance) b) Fiscal Year 2021 Financial Results. (Prepared by Rajeev Thomas, Deputy Chief of Finance) c) AUS Air Service Update. (Prepared by Jamy Kazanoff, Air Service Development) 1 1 3. VERBAL STAFF BRIEFINGS Executive Officer. a) “Update from the Chief Executive Officer” presented by Jacqueline Yaft, Chief b) “Principal Architect Team selection for 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. c) “Airline Lounge Updates” presented by Mukesh “Mookie” Patel, Chief of Business and Finance. d) “Updates on the Hilton Austin Airport” presented by Tracy Thompson, Chief of Airport Affairs, and Rajeev Thomas, Deputy Chief of Finance. 4. CONSENT AGENDA a) Authorize negotiation and execution of a contract with Associated Time Instruments Co., Inc. d/b/a Associated Time & Parking Controls to provide maintenance, repair, and support services for the automated parking guidance system, for a term of five years in an amount not to exceed $725,000. (Note: Sole source contracts are exempt from the City Code Chapter 2-9D Minority Owned and Women Owned Business Enterprise Procurement Program; therefore, no subcontracting goals were established). b) Authorize negotiation and execution of a contract with Ricondo Associates Inc, Unison Consulting, Inc, LeighFisher Inc, and Frasca Associates LLC for financial and other related consulting services, for a term of five years for a total contract amount not to exceed $2,500,000 divided among the contractors as needed for Aviation Department. (Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code 2-9C Minority Owned and Women Owned Business Enterprise Procurement Program. SMBR determined this solicitation as an opportunity for the 16 certified minority-owned and women-owned businesses available to propose as a prime consultant. As a result, two minority-owned (Ricondo Associations Inc.) and women-own (Frasca Associates LLC) businesses were selected. 5. ACTION ITEMS 6. OLD BUSINESS a) Discuss and approve schedule for 2022 meetings. b) Review of AAC bylaws and mission statement. a) City Council meeting on October 14, 2021. • Approve a resolution finding the use of the Construction Manager-at- 2 2 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 Expansion and Development Program, Airfield Construction project for airfield improvements. Approved on consent. b) City Council meeting on October 21, 2021. • Authorize negotiation and execution of a Job Order Assignment with Alpha Building Corporation for the Barbara Jordan Terminal Vertical Circulation project for a total amount not to exceed $3,000,000. Approved on consent. c) City Council meeting on November 4, 2021. • Authorize negotiation and execution of a multi-term contract with Preferred Technologies LLC to provide an access control and identity management system, for up to five years for a total contract amount not to exceed $6,400,000. Approved on a 10-0 vote. • Authorize negotiation and execution of a multi-term contract with Level 3 Financing, Inc. d/b/a Level 3 Telecom Holdings, LLC to provide data and telecommunications services, for up to ten years for a total contract amount not to exceed S7,000,000. Approved on consent. • Authorize negotiation and execution of a Job Order Assignment with Hensel Phelps Construction Co., one of the City's Facilities Improvement Job Order Contractors, to reconfigure Austin Bergstrom International Airport Transportation Security Administration (TSA) Checkpoints 1 and 2 Remodel for a total amount not to exceed $1,500,000. Approved on consent. • Authorize award and execution of a construction contract with Flintco, LLC, for the AUS Cargo Development East project in the amount of $16,584,000, plus a $l,658,400 contingency, for a total contract amount not to exceed $l8,242,400. Approved on consent. 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 to be determined by the Commission on item 5a. Tentatively scheduled for January 11, 2022 at 3:00 PM. ADJOURNMENT The City of Austin is committed to compliance with the Americans with Disabilities Act. 3 3Reasonable 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. 4 4 AIRPORT ADVISORY COMMISSION ITEM 1. APPROVAL OF MINUTES October 12, 2 021 - MEETING 5 AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, OCTOBER 12, 2021 The Airport Advisory Commission convened in a Virtual Regular Meeting on Tuesday, October 12, 2021. CALL TO ORDER Chair E. Sepulveda called the Commission Meeting to order at 3:00 p.m. Commissioners in Attendance: Eugene Sepulveda – Chair Jeremy Hendricks – Secretary Billy Owens Vicky Sepulveda Ernest Saulmon Commissioners Absent: Scott Madole – Vice-Chair Jonathan Coon Chad Ennis Raymond Young Wendy Price Todd CITIZENS COMMUNICATIONS: None. 1. APPROVAL OF MINUTES a) The minutes from the meeting of September 14, 2021 were approved on Commissioner Saulmon’s motion, Commissioner Young seconded. Motion passed on an 8-0-1-1 vote. Commissioner Todd abstained. Vice Chair Madole was absent. 2. WRITTEN STAFF BRIEFINGS a) “August 2021 Financial Results” prepared by Rajeev Thomas, Deputy Chief, Finance. 6 b) “AUS Air Service Update” prepared by Jamy Kazanoff, Air Service Development. 3. VERBAL STAFF BRIEFINGS a) “Updates on the Airport Expansion and Development Program (AEDP)” presented by Shane Harbinson, Deputy Chief of Planning and Development. b) “Contracting Methodologies” presented by Rolando Fernandez, Capital Contracting Officer. 4. CONSENT AGENDA Items 4a and 4b were pulled for discussion by Chair E Sepulveda due to MBE/DBE issues. Item 4c was pulled for discussion by Chair E Sepulveda for questions regarding airport egress. Items 4d and 4e were pulled for discussion by Chair E Sepulveda due to the need to discuss the consent agenda format going forward. a) Authorize negotiation and execution of a multi-term contract with Preferred Technologies LLC to provide an access control and identity system for up to five years for a total contract amount not to exceed 6,400,000. A motion to approve was made by Secretary Hendricks; Commissioner Todd seconded. Motion passed on an 8-0-1-1 vote. Commissioner Coon abstained. Vice Chair Madole was absent. Chair E Sepulveda notes he voted in favor after SMBR staff clarified that the contract awardee is registered with the state as a veteran-owned business but is not registered with the City of Austin as an MWBE/DBE. b) Authorize negotiation and execution of a multi-term contract with Level 3 Financing, Inc. DBA Level 3 Telecom Holdings LLC, a Lumen Technologies Company, to Request for Proposals 8100 DDM3005 to provide data and telecommunications services for up to ten years for a total contract amount not to exceed $7,000,000. A motion to approve was made by Commissioner V Sepulveda; Commissioner Saulmon seconded. Motion passed on a 7-1-1-1 vote. Chair E Sepulveda voted against due to a lack of MWBE/DBE representation. Commissioner Young abstained. Vice Chair Madole was absent. c) Authorize negotiation and execution of a Job Order Assignment with Hensel Phelps Construction Co., one of the City’s Facilities Improvement Job Order Contractors, to reconfigure Austin-Bergstrom International Airport Transportation Security Administration Checkpoints 1 & 2 for a total amount not to exceed $1,500,000. A motion to approve was made by Commissioner Todd; Commissioner Coon seconded. Motion passed on an 8-1-0-1 vote. Chair E Sepulveda voted against due to considerations regarding airport egress for elderly and disabled passengers. Vice Chair Madole was absent. 7 d) Authorize negotiation and execution of a Job Order Assignment with Alpha Building Corporation for the Barbara Jordan Terminal Vertical Circulation project for a total amount not to exceed $3,000,000. A motion to approve was made by Commissioner Saulmon; Commissioner Young seconded. Motion passed on a 9-0-0-1 vote. Vice Chair Madole was absent. e) Authorize award and execution of a construction contract with Flintco LLC for the AUS Cargo Development East project in the amount of $16,584,000 plus $1,658,400 contingency, for a total contract amount not to exceed $18,242,400. A motion to approve was made by Commissioner V Sepulveda; Commissioner Saulmon seconded. Motion passed on an 8-0-1-1 vote. Commissioner Todd abstained. Vice Chair Madole was absent. 5. ACTION ITEMS None. 7. NEW BUSINESS Council Member a) Discussion of Consent Agenda format for agendas on future meetings. Commissioner Todd requested that the Chair and Vice Chair review items for before inclusion on the Consent Agenda. b) Review of the Boards and Commissioners Quick Guide provided by the City Clerk. 6. FOR RECOMMENDATION, AVIATION DEPARTMENT a) Review of Commission Recommendations and Actions to discuss with appointing City · The 11 month year-to-date revenue is $32 million over budgeted revenue. · The Covid-19 Delta Variant slowdown in travel appears modest at AUS and appears to be on a potential upward rebound. · British Airways service to and from London Heathrow (LHR) restarts tomorrow, October 13, 2021. · The AAC is mindful of the sensitivity with City of Austin contracting and infrastructure capacity given the upcoming projects related to the AEDP. b) Future Agenda Items · Commissioner V Sepulveda requested a briefing on arts projects at AUS. 8· Chair E Sepulveda requested a continuation of the briefing from the SMBR office at a date to be determined in the future. c) Next scheduled meeting November 8, 2021 at 3:00 p.m. ADJOURNMENT Chair E. Sepulveda adjourned the meeting at 4:59 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. 9 AIRPORT ADVISORY COMMISSION ITEM 2a – WRITTEN STAFF BRIEFINGS September and October 2021 Financial Results Prepared by Rajeev Thomas, Deputy Chief, Finance 10 MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: December 14, 2021 SUBJECT: Austin-Bergstrom International Airport (AUS) Update October 2021 Financial Results (Fiscal Year 2022) Total passenger traffic increased 199.6% in October 2021 compared to October 2020 (which was severely impacted by pandemic related concerns). Total passenger traffic in October 2021 was 96.9% of October 2019. The results for October 2021 are affected by three events; Formula One’s (F1) US Grand Prix, the Austin City Limits Music Festival, and MotoGP. For comparison, the F1 event for 2019 was on Nov. 3rd and the ACL dates were Oct 4 -13th for 2019. Table #1 FY 2022 October FY 2021 October Variance Fav (Unfav) FY 2022 YTD FY 2021 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage 759,968 251,734 201.9% 759,968 251,734 974,810,356 409,225,230 138.2% 974,810,356 409,225,230 13,161 11,236 17.1% 13,161 11,236 Operating Revenue $19,504,689 $10,437,704 $9,066,984 $19,504,689 $10,437,704 $9,066,984 Airport OPEX $8,758,689 $9,194,900 $436,211 $8,758,689 $9,194,900 Total Requirements $13,831,094 $14,040,509 $209,415 $13,831,094 $14,040,509 Net Income Before CARES Act $5,673,594 ($3,602,805) $9,276,400 $5,673,594 ($3,602,805) $9,276,400 Cares Act Reimbursement $0 $3,715,328 ($3,715,328) $0 $3,715,328 ($3,715,328) Net Income After CARES Act $5,673,594 $112,523 $5,561,072 $5,673,594 $112,523 $5,561,072 201.9% 138.2% 17.1% $436,211 $209,415 As shown in Table #1, October 2021’s enplanements were 201.9% higher than October 2020, serving an additional 508,234 enplaned passengers. Passenger enplanements totaled 759,968 in October 2021 compared to 251,734 in October 2020 and 778,307 in October 2019. Landing weights totaled 974.8 million in October 2021, an increase of 138.2% compared to October 2020 and 6.3% increase compared to October 2019. Cargo volume in October 2021 increased 17.1% compared to October 2020 and increased 51.8% compared to October 2019. 11 Monthly operating revenues increased 86.9% or $9.1M compared to October 2020. Totaling $19.5M, October 2021 operating revenues represent a record high and were driven primarily by increases in passenger and aircraft traffic related to multiple special events held in Austin in the month of October. Airport operating expenses were $436k favorable compared to October 2020 with both October 2020 and 2021 being three pay period months. AUS reported $5.7M of net income (before CARES ACT) in October 2021 compared to a deficit of ($3.6M) in October 2020. In the first month of the Fiscal Year 2022 (FY2022), AUS delivered strong financial performance when compared to the approved FY2022 budget due to increased revenue and operating expense savings. Table #2 Approved Budget FY 2022 FY 2022 Budget vs. YTD Variance Budget vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) Operating Revenue $13,311,250 $19,504,689 $6,193,439 Airport OPEX $10,020,576 $8,758,689 $1,261,887 Total Requirements $15,092,981 $13,831,094 $1,261,887 Net Income Before CARES Act ($1,781,731) $5,673,594 $7,455,326 46.5% 12.6% 8.4% 418.4% As presented in Table #2, Year-to-Date (YTD) FY2022 revenues exceed budgeted revenues by 46.5% or $6.2M. The elevated revenues are driven by the strong passenger traffic related to the special events held in the month of October. Airport operating expenses are 12.6% or $1.3M below budgeted expenses due primarily to higher than anticipated personnel vacancy rates. Before CARES Act funding application, AUS reported net income of $5.7M, which exceeded the budget estimate by $7.5M. Attachments: October 2021 - AAC Financial Report 12CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 1 Month(s) ended October 31, 2021 FY 2022 Approved Budget Budget Seasonalized 1 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 353,379 160,942,229 29,448 13,311,250 26,030,400 48,629,418 74,659,818 36,056,647 4,983,334 11,586,297 10,613,694 5,097,925 2,059,095 15,532,040 85,929,032 61,086,440 6,045,841 30,346,679 6,135,897 103,614,857 5,411,891 6,654,005 9,698,969 14,520,686 16,919,848 53,205,399 448,220 6,154,467 1,790,090 342,887 332,077 353,120 2,129,441 427,505 3,392,000 15,369,807 2,179,567 3,987,213 6,166,780 3,156,589 411,910 965,525 884,475 424,827 171,591 1,100,106 7,115,022 6,257,723 582,851 2,767,440 412,562 10,020,576 451,131 554,500 808,247 1,215,428 1,080,573 4,109,880 37,352 512,872 149,174 28,574 27,673 29,427 177,453 0 0 962,525 3,389,245 5,401,686 8,790,931 4,466,512 688,053 1,851,296 1,255,904 573,772 349,459 1,524,796 10,709,792 3,966 19,504,689 5,485,216 459,783 2,112,858 700,832 8,758,689 451,131 554,500 808,247 1,215,428 1,080,573 4,109,880 37,352 512,872 149,174 28,574 27,673 29,427 177,453 0 0 962,525 1,209,678 1,414,473 2,624,151 1,309,923 276,143 885,772 371,430 148,945 177,867 424,691 3,594,770 (25,482) 6,193,439 772,507 123,069 654,582 (288,270) 1,261,887 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 55.5% 35.5% 42.6% 41.5% 67.0% 91.7% 42.0% 35.1% 103.7% 38.6% 50.5% (86.5%) 46.5% 12.3% 21.1% 23.7% (69.9%) 12.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A 0.0% 8.4% 1,209,678 1,414,473 2,624,151 1,309,923 276,143 885,772 371,430 148,945 177,867 424,691 3,594,770 (25,482) 6,193,439 772,507 123,069 654,582 (288,270) 1,261,887 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 55.5% 35.5% 42.6% 41.5% 67.0% 91.7% 42.0% 35.1% 103.7% 38.6% 50.5% (86.5%) 46.5% 12.3% 21.1% 23.7% (69.9%) 12.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% N/A N/A 0.0% 8.4% 0 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 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 CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Compensation Adjustment Trf to Subordinate Obligation TOTAL OTHER REQUIREMENTS EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS TOTAL OPERATING EXPENSES Debt Service TOTAL REQUIREMENTS 172,190,063 15,092,981 13,831,094 1,261,887 1,261,887 (11,247,834) (1,781,731) 5,673,594 7,455,326 418.4% 7,455,326 418.4% CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) TOTAL CARES ACT REIMBURSEMENT (3,569,365) (14,611,240) (18,180,605) (297,447) (1,217,603) (1,515,050) 0 0 0 (297,447) (1,217,603) (1,515,050) (100.0%) (100.0%) (100.0%) (297,447) (1,217,603) (1,515,050) (100.0%) (100.0%) (100.0%) EXCESS (DEFICIT) OF TOTAL AFTER CARES ACT 6,932,771 (266,681) 5,673,594 5,940,275 2227.5% 5,940,275 2227.5% Note: Columns may not add to totals shown because of rounding ENPLANMENTS October, 2021 (Month over Month) October, 2021 - Year-to-Date Passengers 759,968 759,568 13CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY21 (Oct 21) vs FY20 (Oct 20) Fiscal YTD - This Year vs. Last Year FY21 (Oct 21 - Oct 21) vs FY20 (Oct 20 - Oct 20) FY22 Oct-21 FY21 Oct-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY22 YTD Oct-21 FY21 YTD Oct-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance 3,389,245 5,401,686 8,790,931 1,443,769 3,817,304 5,261,072 4,466,512 688,053 1,851,296 1,255,904 573,772 349,459 1,524,796 10,709,792 1,259,119 162,154 945,110 898,497 506,176 162,321 1,220,125 5,153,502 3,966 19,504,689 23,130 10,437,704 5,485,216 459,783 2,112,858 700,832 8,758,689 0 451,131 554,500 808,247 1,215,428 1,080,573 4,109,880 37,352 512,872 149,174 28,574 0 27,673 29,427 177,453 962,525 5,387,476 434,187 3,053,141 320,096 9,194,900 42 450,678 589,557 836,226 1,364,846 474,021 3,715,371 36,312 527,361 156,605 13,844 29,230 25,662 25,096 316,130 1,130,239 1,945,476 1,584,382 3,529,859 3,207,393 525,899 906,186 357,407 67,596 187,137 304,672 5,556,290 (19,164) 9,066,984 (97,741) (25,595) 940,283 (380,736) 436,211 42 (453) 35,057 27,979 149,418 (606,552) (394,509) (1,040) 14,489 7,431 (14,730) 29,230 (2,011) (4,331) 138,676 167,713 134.7% 41.5% 67.1% 254.7% 324.3% 95.9% 39.8% 13.4% 115.3% 25.0% 107.8% (82.9%) 86.9% (1.8%) (5.9%) 30.8% (118.9%) 4.7% 100.0% (0.1%) 5.9% 3.3% 10.9% (128.0%) (10.6%) (2.9%) 2.7% 4.7% (106.4%) 100.0% (7.8%) (17.3%) 43.9% 14.8% 3,389,245 5,401,686 8,790,931 4,466,512 688,053 1,851,296 1,255,904 573,772 349,459 1,524,796 10,709,792 3,966 19,504,689 5,485,216 459,783 2,112,858 700,832 8,758,689 0 451,131 554,500 808,247 1,215,428 1,080,573 4,109,880 37,352 512,872 149,174 28,574 0 27,673 29,427 177,453 962,525 1,443,769 3,817,304 5,261,072 1,259,119 162,154 945,110 898,497 506,176 162,321 1,220,125 5,153,502 23,130 10,437,704 5,387,476 434,187 3,053,141 320,096 9,194,900 42 450,678 589,557 836,226 1,364,846 474,021 3,715,371 36,312 527,361 156,605 13,844 29,230 25,662 25,096 316,130 1,130,239 1,945,476 1,584,382 3,529,859 3,207,393 525,899 906,186 357,407 67,596 187,137 304,672 5,556,290 (19,164) 9,066,984 (97,741) (25,595) 940,283 (380,736) 436,211 42 (453) 35,057 27,979 149,418 (606,552) (394,509) (1,040) 14,489 7,431 (14,730) 29,230 (2,011) (4,331) 138,676 167,713 134.7% 41.5% 67.1% 254.7% 324.3% 95.9% 39.8% 13.4% 115.3% 25.0% 107.8% (82.9%) 86.9% (1.8%) (5.9%) 30.8% (118.9%) 4.7% 100.0% (0.1%) 5.9% 3.3% 10.9% (128.0%) (10.6%) (2.9%) 2.7% 4.7% (106.4%) 100.0% (7.8%) (17.3%) 43.9% 14.8% 5,673,594 (3,602,805) 9,276,400 257.5% 5,673,594 (3,602,805) 9,276,400 257.5% 0 0 (3,715,328) (3,715,328) (3,715,328) (3,715,328) (100.0%) (100.0%) 0 0 (3,715,328) (3,715,328) (3,715,328) (3,715,328) (100.0%) (100.0%) 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 Additional Retirement Contribution 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 (Debt Service) Total CARES Act Total Requirements 13,831,094 14,040,509 209,415 1.5% 13,831,094 14,040,509 209,415 1.5% TOTAL SURPLUS (DEFICIT) AFTER CARES ACT 5,673,594 112,523 5,561,072 4942.2% $ 5,673,594 $ 112,523 $ 5,561,072 4942.2% Note: Columns may not add to totals shown because of rounding 14 AIRPORT ADVISORY COMMISSION ITEM 2b – WRITTEN STAFF BRIEFINGS Fiscal Year 2021 Financial Results Prepared by Rajeev Thomas, Deputy Chief, Finance 15 MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: December 14, 2021 SUBJECT: Austin-Bergstrom International Airport (AUS) Update September 2021 Financial Results Total passenger traffic increased 190.2% in September 2021 compared to September 2020 (which was severely impacted by pandemic related concerns). Total passenger traffic in September 2021 is 85.6% of September 2019. Table #1 FY 2021 FY 2020 Variance September September Fav (Unfav) FY 2021 YTD FY 2020 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage 601,732 207,968 189.3% 5,207,769 4,723,544 867,079,407 378,925,681 128.8% 7,195,387,954 7,014,192,094 10,738 10,677 0.6% 116,633 100,470 Operating Revenue $16,161,875 $8,963,247 $7,198,628 $153,260,451 $140,166,565 $13,093,885 Airport OPEX $14,778,724 $10,115,013 ($4,663,712) $90,183,729 $99,453,068 Total Requirements $22,325,968 $14,892,371 ($7,433,597) $153,135,844 $154,582,554 Net Income Before CARES Act ($6,164,093) ($5,929,124) ($234,969) $124,607 ($14,415,989) $14,540,596 CARES Act Reimbursement $833,934 $3,796,903 ($2,962,969) $29,872,172 $21,546,781 $8,325,390 Net Income After CARES Act ($5,330,159) ($2,132,221) ($3,197,938) $29,996,778 $7,130,792 $22,865,986 10.3% 2.6% 16.1% $9,269,339 $1,446,711 Table #1 illustrates September 2021’s enplanements were 189.3% higher than September 2020, serving an additional 393,764 enplaned passengers. Passenger enplanements totaled 601,732 in September 2021 compared to 207,968 in September 2020 and 703,770 in September 2019. Cargo volume in September 2021 increased 0.6% compared to September 2020. Monthly operating revenues increased 80.3% or $7.2M compared to September 2020 as landing fees, retail and parking revenues return to pre-pandemic volumes. Before Cares Act funding application, AUS reported a ($6.2M) deficit in September 2021 compared with a ($5.9M) deficit in September 2020. The deficit in September 2021 is 16primarily driven by year end expenses and remaining unused encumbrance balances charged in this period as is standard for the final month of the fiscal year. Fiscal Year 2021 Financial Results (Close II) Fiscal Year 2021 (FY2021) traffic totaled 10,395,521 passengers which represents a 10.2% increase from the prior year. FY2021 total passenger traffic was 61.4% of the passenger traffic in FY2019; however, in the final quarter of FY2021 (July through September 2021) AUS averaged 88.5% of passenger traffic compared to the same period in 2019. As shown in Table #1, FY2021 passenger enplanements are 10.3% higher than the prior year. FY2021 cargo volume increased 16.1% compared to the prior year. Excluding mail and belly freight, FY2021 cargo volume increased 21.4% over the prior year. Table #2 FY 2021 FY 2021 FY 2021 Budget vs. YTD Variance Budget vs. YTD Variance CYE vs. YTD Variance CYE vs. YTD Variance Amended Budget CYE YTD $ Fav (Unfav) % Fav (Unfav) $ Fav (Unfav) $ Fav (Unfav) Operating Revenue $125,320,092 $126,286,406 $153,260,451 27,940,359 22.3% 26,974,045 Airport OPEX $98,823,377 $93,356,309 $90,183,729 8,639,648 8.7% 3,172,580 Total Requirements $158,854,288 $156,334,273 $153,135,844 5,718,444 3.6% $3,198,429 Net Income before CARES Act ($33,534,196) ($30,047,867) $124,607 33,658,803 100.4% 30,172,474 CARES Act Reimbursement $30,950,446 $33,618,983 $29,872,172 ($1,078,274) (3.5%) ($3,746,811) Net Income After CARES Act ($2,583,750) $3,571,116 $29,996,778 32,580,528 1261.0% 26,425,662 21.4% 3.4% 2.0% 100.4% (11.1%) 740.0% As presented in Table #2, FY2021 revenues exceed budgeted revenues by 22.3% or $27.9M. FY2021 operating revenues increased 9.3% or $13.1M compared to the prior year as identified in Table #1. The increased revenues year over year are driven by increased landing fees, terminal rental and fees, parking, rental car, and retail revenues. In the final quarter of FY2021 (July through September 2021) operating revenue (prior to pandemic related concessionaire relief credits remitted in July 2021) was 2.4% higher compared to the same quarter in FY2019. Airport operating expenses are 8.7% or $8.6M below budgeted expenses due to higher than anticipated personnel vacancy rates in spite of attempts to increase staffing levels in the latter half of the year. The continued focus on operational efficiencies and expense savings resulted in favorable FY2021 expenses to budget and current year estimates (CYE). Compared to the prior year, airport operating expenses favorably decreased 9.3% or $9.3M. Debt service and City of Austin allocated costs were in line with AUS’s budget and forecast. In FY2021, before Cares Act funding application, AUS reported net income 17of $0.1M compared to prior year deficit of ($14.4M). FY2021 net income before CARES Act is $33.7M higher than budgeted due to higher than expected passenger traffic in the second half of the fiscal year which resulted in increased revenues while expenses remained lower than expected. In FY2021, AUS received $27.1M and $2.7M in CARES Act reimbursement funds for debt service and parking expenses, respectively. Attachments: September 2021 - AAC Financial Report 18CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 12 Month(s) ended September 30, 2021 - Close II FY 2021 Amended Budget FY 2021 CYE 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 1,208,114 125,320,092 318,429 126,286,406 112,980 153,260,451 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 0 13,562,852 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 0 16,521,098 25,286,933 53,139,416 78,426,350 27,942,020 3,628,632 12,850,788 7,344,348 5,610,468 1,897,783 15,447,082 74,721,121 56,378,182 4,798,319 24,300,072 4,707,156 90,183,729 504 5,412,800 7,081,300 10,042,648 15,457,870 8,471,700 46,466,822 435,740 6,328,330 1,879,259 166,126 0 307,939 301,150 3,793,554 0 16,485,292 8,566,933 15,442,416 24,009,350 6,834,749 (858,409) 1,781,235 (4,123,002) 394,720 147,783 849,067 5,026,143 (1,095,134) 27,940,359 3,365,961 592,873 1,341,319 3,339,495 8,639,648 3 95 (3,456) (7,933) 12,478 51 1,239 51.2% 41.0% 44.1% 32.4% (19.1%) 16.1% (36.0%) 7.6% 8.4% 5.8% 7.2% (90.6%) 22.3% 5.6% 11.0% 5.2% 41.5% 8.7% 0.6% 0.0% (0.0%) (0.1%) 0.1% 0.0% 0.0% 7,860,181 9,460,193 17,320,373 9,604,886 1,609,579 1,823,938 (4,208,765) 394,720 0 634,762 9,859,121 (205,449) 26,974,045 1,174,905 254,746 1,768,875 (25,946) 3,172,580 0 95 (3,456) (7,933) 1,287 51 (9,956) 0 0 0 0 350,754 0 0 0 0 N/A 0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0% 0.0% 0 0 0 0 0 0 0 0 0 N/A 45.1% 21.7% 28.3% 52.4% 79.7% 16.5% (36.4%) 7.6% 0.0% 4.3% 15.2% (64.5%) 21.4% 2.0% 5.0% 6.8% (0.6%) 3.4% 0.0% 0.0% (0.0%) (0.1%) 0.0% 0.0% (0.0%) 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% 0.0% 0.2% 2.0% 158,854,288 156,334,273 153,135,844 5,718,446 3.6% 3,198,430 (2,922,440) (21.5%) 35,806 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 Liability Reserve TOTAL OTHER REQUIREMENTS TOTAL REQUIREMENTS EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS TOTAL OPERATING EXPENSES Debt Service CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) TOTAL CARES ACT REIMBURSEMENT 0 (30,950,446) (30,950,446) 0 (33,618,983) (33,618,983) (2,742,648) (27,129,523) (29,872,172) 2,742,648 (3,820,923) (1,078,274) N/A (12.3%) (3.5%) 2,742,648 (6,489,460) (3,746,811) N/A (19.3%) (11.1%) EXCESS (DEFICIT) OF TOTAL AFTER CARES ACT (2,583,750.00) 3,571,116.00 29,996,778.30 32,580,530.13 1261.0% 26,425,662.73 740.0% (33,534,196) (30,047,867) 124,607 33,658,805 100.4% 30,172,474 100.4% Note: Columns may not add to totals shown because of rounding ENPLANEMENTS September, 2021 (Month over Month) September, 2021 - Year-to-Date Passengers 601,732 5,207,769 19CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY21 (Sep 21) vs FY20 (Sep 20) Fiscal YTD - This Year vs. Last Year FY21 (Oct 20 - Sep 21) vs FY20 (Oct 19 - Sep 20) FY21 Sep-21 FY20 Sep-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY21 YTD Sep-21 FY20 YTD Sep-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance 2,833,227 5,284,167 8,117,393 3,878,093 514,770 215,864 565,805 384,330 79,225 2,402,275 8,040,362 4,120 16,161,875 8,161,235 890,659 5,016,598 710,232 14,778,724 39 451,036 593,301 844,159 1,276,439 1,092,532 4,257,506 36,308 527,370 156,604 13,844 25,657 25,094 316,130 2,188,732 3,289,738 1,334,862 3,792,957 5,127,819 1,233,487 133,212 (95,327) 326,681 198,837 81,892 1,935,856 3,814,637 20,791 8,963,247 6,709,087 538,398 2,516,594 350,933 10,115,013 0 450,700 589,840 836,388 1,401,131 474,000 3,752,059 38,284 479,138 151,491 29,543 17,128 26,435 283,281 0 1,025,300 1,498,364 1,491,210 2,989,574 2,644,606 381,558 311,192 239,124 185,493 (2,667) 466,419 4,225,724 (16,671) 7,198,628 (1,452,149) (352,260) (2,500,003) (359,299) (4,663,712) (39) (336) (3,461) (7,771) 124,692 (618,532) (505,447) 1,976 (48,232) (5,113) 15,699 (8,529) 1,341 (32,849) (2,188,732) (2,264,438) 112.2% 39.3% 58.3% 214.4% 286.4% 326.4% 73.2% 93.3% (3.3%) 24.1% 110.8% (80.2%) 80.3% (21.6%) (65.4%) (99.3%) (102.4%) (46.1%) N/A (0.1%) (0.6%) (0.9%) 8.9% (130.5%) (13.5%) 5.2% (10.1%) (3.4%) 53.1% (49.8%) 5.1% (11.6%) N/A (220.9%) 112,980 153,260,451 812,924 140,166,565 (699,944) 13,093,885 25,286,933 53,139,416 78,426,350 27,942,020 3,628,632 12,850,788 7,344,348 5,610,468 1,897,783 15,447,082 74,721,121 56,378,182 4,798,319 24,300,072 4,707,156 90,183,729 504 5,412,800 7,081,300 10,042,648 15,457,870 8,471,700 46,466,822 435,740 6,328,330 1,879,259 166,126 307,939 301,150 3,793,554 3,273,194 16,485,292 24,318,648 49,381,268 73,699,917 23,409,088 3,912,754 10,259,195 7,044,922 3,241,392 2,108,648 15,677,727 65,653,725 58,573,743 5,773,641 24,833,178 10,272,507 99,453,068 0 5,409,100 7,077,794 9,962,559 16,049,688 4,326,750 42,825,891 459,386 5,749,656 1,817,925 354,511 205,514 317,231 3,399,372 0 12,303,595 968,285 3,758,148 4,726,433 4,532,931 (284,122) 2,591,594 299,426 2,369,076 (210,865) (230,645) 9,067,396 2,195,561 975,322 533,106 5,565,351 9,269,339 (504) (3,700) (3,506) (80,089) 591,818 (4,144,950) (3,640,931) 23,646 (578,674) (61,334) 188,385 (102,425) 16,081 (394,182) (3,273,194) (4,181,697) 4.0% 7.6% 6.4% 19.4% (7.3%) 25.3% 4.3% 73.1% (10.0%) (1.5%) 13.8% (86.1%) 9.3% 3.7% 16.9% 2.1% 54.2% 9.3% N/A (0.1%) (0.0%) (0.8%) 3.7% (95.8%) (8.5%) 5.1% (10.1%) (3.4%) 53.1% (49.8%) 5.1% (11.6%) N/A (34.0%) (6,164,093) (5,929,124) (234,969) (4.0%) 124,607 (14,415,989) 14,540,596 100.9% (833,934) 0 (833,934) 0 (3,796,903) (3,796,903) 833,934 (3,796,903) (2,962,969) N/A (100.0%) (78.0%) (2,742,648) (27,129,523) (29,872,172) (2,787,153) (18,759,628) (21,546,781) (44,505) 8,369,895 8,325,390 (1.6%) 44.6% 38.6% 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 Trf to Subordinate Obligation 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 22,325,968 14,892,371 (7,433,597) (49.9%) 153,135,844 154,582,554 1,446,711 0.9% TOTAL SURPLUS (DEFICIT) AFTER CARES ACT (5,330,159) (2,132,221) (3,197,938) (150.0%) $ 29,996,778 $ 7,130,792 $ 22,865,986 320.7% 20 AIRPORT ADVISORY COMMISSION ITEM 2c – WRITTEN STAFF BRIEFINGS AUS Air Service Update Prepared by Jamy Kazanoff, Air Service Development 21December 2021 Air Service Snapshot The Thanksgiving holiday saw some of the busiest travel days since the beginning of the pandemic with nearly 2.5mm passengers being processed at TSA checkpoints on Sunday, November 28 and some other days easily exceeding 2.0mm passengers. Enthusiasm surrounding these achievements has been subdued by the onset of the Omicron variant which along with new tesEng rules, has already impacted demand in internaEonal markets. AFer nearly two months of consistent week-over-week improvement in bookings, industry trades and consumer reports are now reporEng signs of a slowdown. 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 starEng in April. Some carriers are returning to a more typical scheduling Emeline where schedules are ﬁrmed three or more months out but some are sEll making close-in changes. Most carriers have adjusted AUS schedules through February and some even beyond that through the summer. Based on currently ﬁled schedules, capacity will be 20% above 2019 levels in December and a staggering 36% in January and 32% in February. The route map on the next page provides a snapshot of current air service at AUS. Highlights of recent air service announcements/developments include: • Allegiant opened its new base last month with 89 employees and three A320s; new service started to AMA, FSD, • PBI, PGD, PVU, SDF, SGF, SNA & TUL Bri9sh Airways resumed LHR service on Oct. 13 with 3 weekly ﬂights; increased to 4 weekly in November and December; and then 5 weekly in January & February • Air Canada returned to AUS on Oct. 2 with 6 weekly ﬂights, but will take a hiatus from Dec. 18 – Jan. 4 due to CBP staﬃng issues at Toronto (YYZ) pre-clearance KLM has loaded AMS service for sale eﬀecEve March 28, 2022 with 3/week on the 292-seat A330-300 • LuBhansa has deferred service restoraEon to March 2, 2022; WestJet is scheduled to return on May 1, 2022 • • Hawaiian added extra HNL frequencies for the holidays and has added a permanent third weekly frequency eﬀ. Dec. 12 Southwest nonstop service will be added to AMA, CHS, CMH, MAF, ONT & PVR in early 2022. • • American started nonstop service to LIR, PUJ, PVR & TUL; will serve DEN, RSW, SLC & SRQ for the holidays; will start ABQ in January and increase DEN to year-round • Alaska will serve PSP 5/wk from November 19 – April 18 22Southwest is sEll the largest carrier at AUS by capacity but American is now much closer in size. United and Delta are sEll similar in terms of capacity share. Southwest’s share will increase once addiEonal new service is started this Spring. Allegiant has also gained capacity share since 2019 with the opening of an aircraF and crew base and will likely grow further. 23 AIRPORT ADVISORY COMMISSION ITEM 4a – CONSENT AGENDA Authorize negotiation and execution of a contract with Associated Time Instruments Co., Inc. d/b/a Associated Time & Parking Controls to provide maintenance, repair, and support services for the automated parking guidance system, for a term of five years in an amount not to exceed $725,000. 24City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 21-3526, Agenda Item #: 1/27/2022(cid:4) Posting Language Authorize negotiation and execution of a contract with Associated Time Instruments Co., Inc. d/b/a Associated Time & Parking Controls to provide maintenance, repair, and support services for the automated parking guidance system, for a term of five years in an amount not to exceed $725,000. (Note: Sole source contracts are exempt from the City Code Chapter 2-9D Minority Owned and Women Owned Business Enterprise Procurement Program; therefore, no subcontracting goals were established). Lead Department Financial Services Department. Client Department(s) Aviation. Purchasing Language: Sole Source. Fiscal Note Funding in the amount of $101,433 is available in the Fiscal Year 2021-2022 Operating Budget of Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. For More Information: Inquiries should be directed to Sai Xoomsai Purcell, at 512-978-1524 or Sai.Xoomsai@austintexas.gov <mailto:Sai.Xoomsai@austintexas.gov>. Council Committee, Boards and Commission Action: December 14, 2021 - To be reviewed by the Airport Advisory Commission. Additional Backup Information: The contract will provide maintenance, support, and repair services for the automated parking guidance system used to assist customers with locating open parking spaces at Austin-Bergstrom International Airport’s (ABIA) parking facilities. This system ensures efficient operations of airport parking garages by providing airport parking customers with real time information on parking availability. The contract will allow the Aviation Department to purchase software, equipment, upgrades, training, and other goods and services required to maintain and operate the parking guidance system’s hardware, software, and equipment. The equipment utilized at ABIA is manufactured by Park Assist System and is maintained, supported and distributed exclusively by Associated Time Instruments Co., Inc. Associated Time Instruments Co., Inc. is the sole authorized reseller and program administrator of the Park Assist System equipment and services. This is a new contract. Annual costs are based on contractor standard cost for software and hardware maintenance and support, and projected future upgrades, expansion and repair needs. City of Austin Page 1 of 2 Printed on 12/7/2021 powered by Legistar™ 25(cid:5) (cid:6) File #: 21-3526, Agenda Item #: 1/27/2022(cid:4) Strategic Outcome(s): Mobility. City of Austin Page 2 of 2 Printed on 12/7/2021 powered by Legistar™ 26(cid:5) (cid:6) AIRPORT ADVISORY COMMISSION ITEM 4b – CONSENT AGENDA Authorize negotiation and execution of a contract with Ricondo Associates Inc, Unison Consulting, Inc, LeighFisher Inc, and Frasca Associates LLC for financial and other related consulting services, for a term of five years for a total contract amount not to exceed $2,500,000 divided among the contractors as needed for Aviation Department. 27 COUNCIL DATE: 02.10.2022 CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION VENDOR: RICONDO ASSOCIATES INC, UNISON CONSULTING INC, LEIGHFISHER INC, FRASCA ASSOCIATES LLC. SUBJECT: Authorize negotiation and execution of a contract with Ricondo Associates Inc. (Minority Owned Business (Hispanic)), Unison Consulting, Inc, LeighFisher Inc, and Frasca Associates LLC. (Women-Owned Business) for financial and other related consulting services, for a term of five years for a total contract amount not to exceed $2,500,000 divided among the contractors as needed for Aviation Department. MBE/WBE: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9C Minority Owned and Women Owned Business Enterprise Procurement Program. SMBR determined this solicitation as an opportunity for the sixteen (16) certified minority-owned and women-owned businesses available to proposal as a prime consultant. As a result, two minority-owned and women-owned businesses were selected. LEAD DEPARTMENT: Purchasing Office CLIENT DEPARTMENT(S): Aviation Department FISCAL NOTE: Funding in the amount of $334,000 is available in the Fiscal Year 2021-2022 Operating Budget of the Aviation Department. Funding for the remaining contract term is contingent upon available funding in future budgets. PURCHASING: The Purchasing Office issued a Request for Qualification Statements (RFQS) 8100 JTH4005 for services. The solicitation issued on August 16, 2021 and it closed on September 21, 2021. Of the five offers received, the recommended contractors submitted the best evaluated responsive offers. A complete solicitation package, including a log of offers received, is available for viewing on the City’s Financial Services website, Austin Finance Online. Link: Solicitation Documents PRIOR COUNCIL ACTION: FOR MORE INFORMATION CONTACT: 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 continue to direct inquiries to the solicitation’s Authorized Contact Person(s): Jim Howard, at 512-974-2031 or Jim.howard@austintexas.gov or Alfonso Drayton, at 512- 974-2298 or Alfonso.drayton@austintexas.gov BOARD AND COMMISSION ACTION: December 14, 2021- To be reviewed by the Airport Advisory Commission. ADDITIONAL BACKUP INFORMATION (RCA BODY) The contract will provide specialized airport financial skills and consulting services for the Aviation Department. The Aviation Department requires multiple contractors due to the specialized expertise of each firm which are not available from Aviation city employees. The services will include airport rates and charges financial consulting, airport financial planning, airport financial and strategic planning for capital improvement program financial management, annual airport consultant report on consolidated rental car facility and customer facility charges. Additional consulting such as assisting in developing and implementing benchmarks and best practices, providing research and information on the airport, airline, rental car, and airport parking industries, preparation of cost/benefit analysis of previous and/or future projects or operations and competitive assessments, evaluate feasibility of proposed programs and projects, provide real estate/property feasibility studies as it relates to airport-related development, and provide various economic impact analysis and studies. This contract is replacing the current contract which expires February 22, 2022. The requested authority is based on the historical spend and department estimates. The recommended contractors are the current providers for these services. There will be substantial growth at the Airport during the next five years which will significantly increase the need for these services. Revised 4/2020 1 28 COUNCIL DATE: 02.10.2022 CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION VENDOR: RICONDO ASSOCIATES INC, UNISON CONSULTING INC, LEIGHFISHER INC, FRASCA ASSOCIATES LLC. An evaluation team with expertise in this area evaluated the offers and scored Ricondo Associates Inc, Unison Consulting, Inc, LeighFisher Inc, and Frasca Associates, LLC, as the best to provide these services based on Experience and Qualifications of Proposers and Key Individuals, including references; Understanding of the Scope and magnitude of the work to be accomplished as demonstrated by the RFQS response and Demonstrated Experience of the firm providing aviation services similar to the tasks listed within the scope of work If Aviation is unable to secure a contract, City will not have the financial expertise or ability within Aviation staff to complete the type of tasks required for airport financial maintenance. Strategic Outcome(s): Mobility, Government that Works for All Revised 4/2020 2 29 AIRPORT ADVISORY COMMISSION ITEM 5a – ACTION ITEMS Discuss and approve schedule for 2022 AAC meetings. AIRPORT ADVISORY COMMISSION MEETING 3:00 PM 2716 SPIRIT OF TEXAS DRIVE AUSTIN, TEXAS 78719 2022 MEETING DATES January 11, 2022 February 8, 2022 March 8, 2022 April 12, 2022 May 10, 2022 June 14, 2022 July 12, 2022 August 9, 2022 September 13, 2022 October 11, 2022 November 8, 2022 December 13, 2022 AIRPORT ADVISORY COMMISSION ITEM 5b – ACTION ITEMS Review of AAC bylaws and mission statement. 30BYLAWS OF THE Austin Airport Advisory Commission ARTICLE 1. NAME. The name of the Commission is the Austin Airport Advisory Commission (AAC) ARTICLE 2. PURPOSE AND DUTIES. (A) The Austin Airport Advisory Commission (AAC) reviews, assesses and makes recommendations to Austin City Council concerning the Austin-Bergstrom International Airport (AUS): (B) In its recommendations, AAC ensures consistency with good business practices, integrity and the values of the City of Austin and AUS, including: Capital improvement projects, Proposed aviation grants, Proposed aviation contracts, Annual operating budgets, and Quality of services and customer experience. Safety, Public service & engagement, Responsibility & accountability, Innovation & sustainability, Diversity & inclusion, and Ethics & integrity. • • • • • • • • • • • (C) The AAC advises and offers help to solve problems and advance the mission and initiatives of AUS. (D) The AAC brings citizen input to the airport leadership and engages community stakeholders as needed to promote public awareness and good decision making. (E) The AAC facilitates and promotes communication between the AUS staff and Austin City Council. 31 (F) In all their work, members of the AAC advocate the interests of the airport’s customers, City of Austin citizens, and the Austin City Council. ARTICLE 3. MEMBERSHIP. (A) The Commission is composed of eleven members appointed by the city council. (B) A member serves at the pleasure of the City Council. (C) Commission members serve for a term of four years beginning March 1st on the year of appointment. (D) An individual Commission member may not act in an official capacity except through the action of the C o m m i s s i o n . (E) A Commission member who is absent for three consecutive regular meetings or one-third of all regular meetings in a “rolling” twelve month timeframe automatically vacates the member’s position subject to the holdover provisions in Section 2-1-27 of the City Code. This does not apply to an absence due to illness or injury of the Commission member, an illness or injury of a Commission member’s immediate family member, active military service, or the birth or adoption of the Commission member’s child for 90 days after the event. The Commission member must notify the staff liaison of the reason for the absence not later than the date of the next regular meeting of the Commission. Failure to notify the liaison before the next regular meeting of the Commission will result in an unexcused absence. (F) At each meeting, each Commission member shall sign an attendance sheet which indicates that the member does not have a conflict of interest with any item on that agenda, or identifies each agenda item on which the member has a conflict of interest. Failure to sign the sheet results in the member being counted as absent and his/her votes are not counted. (G) A member who seeks to resign from the Commission shall submit a written resignation to the chair of the C o m m i s s i o n , the staff liaison, or the city clerk’s office. If possible, the resignation should allow for a thirty day notice so the city council can appoint a replacement. ARTICLE 4. OFFICERS. (A) The officers of the Commission shall consist of a chair and a vice-chair. (B) Officers shall be elected annually by a majority vote of the Commission at the first regular meeting after April 1st. In the event a current officer becomes ineligible to serve as an officer, the Commission may hold an emergency election as needed. (C) The term of office shall be one year, beginning May 1st and ending April 30th. An officer may continue to serve until a successor is elected. A person may not serve as an officer in a designated position of a Commission for more than four consecutive one-year terms. A person who has served as an officer in a designated position of a Commission for four consecutive terms is not eligible for re- election to that designated office until the expiration of two years after the last date of the person’s service in that 32 office. The Commission may override the term limit provision for an officer by an affirmative vote of two- thirds of the authorized Commission members. (D) A member may not hold more than one office at a time. ARTICLE 5. DUTIES OF OFFICERS. (A) The chair shall preside at Commission meetings, appoint all committees, represent the Commission at ceremonial functions and approve each final meeting agenda. (B) In the absence of the chair, the vice-chair shall perform all duties of the chair. ARTICLE 6. AGENDAS. (A) Two or more Commission members may place an item on the agenda by oral or written request to the staff liaison at least five days before the meeting. After first consulting with and receiving input from the staff liaison, the chair shall approve each final meeting agenda. (B) The Commission liaison shall submit the meeting agenda through the online agenda posting system for each meeting not less than 72 hours before the meeting. (C) Posting of the agenda must comply with Texas Government Code Chapter 551 (Texas Open Meetings Act). ARTICLE 7. MEETINGS. (A) The Commission meetings shall comply with Texas Government Code Chapter 551 (Texas Open Meetings Act). (B) Commission meetings shall be governed by Robert’s Rules of Order. (C) The Commission may not conduct a closed meeting without the approval of the city attorney. (D) The Commission shall meet monthly. In November of each year, the Commission shall adopt a schedule of the meetings for the upcoming year, including makeup meeting dates for the holidays and cancelled meetings. (E) The chair may call a special meeting, and the chair shall call a special meeting if requested by three or more members. The call shall state the purpose of the meeting. A Commission may not call a meeting in addition to its regular scheduled meetings as identified in its adopted meeting schedule, more often than once a quarter, unless the meeting is required to comply with a statutory deadline or a deadline established by Council. (F) Six members constitute a quorum. 33(G) If a quorum for a meeting does not convene within one-half hour of the posted time for the meeting, then the meeting may not be held. (H) To be effective, a Commission action must be adopted by an affirmative vote of the number of members necessary to provide a quorum. (I) The chair has the same voting privilege as any other member. (J) The Commission shall allow citizens to address the Commission on agenda items and during a period of time set aside for citizen communications. The chair may limit a speaker to three minutes. (K) The staff liaison shall prepare the Commission minutes. The minutes of each Commission meeting must include the vote of each member on each item before the Commission and indicate whether a member is absent or failed to vote on an item. (L) The city clerk shall retain agendas, approved minutes, internal review reports and bylaws. The Aviation Department shall retain all other Commission documents. The documents are public records under Texas Local Government Code Chapter 552 (Texas Public Information Act). (M) The chair shall adjourn a meeting not later than 10 p.m., unless the Commission votes to continue the meeting. (N) ) Each person and Commission member attending a Commission meeting should observe decorum pursuant to Section 2-1-48 of the City Code. (O) ) A member of the public may not address a Commission at a meeting on an item posted as a briefing. ARTICLE 8. COMMITTEES/WORKING GROUPS. COMMITTEES (A) The Airport Advisory Commission will have no committees. (B) Each committee must be established by an affirmative vote of the Commission. A committee cannot meet until its creation is approved by the Council Audit and Finance Committee. Each committee shall consist of at least three Commission members appointed by the chair. A staff member shall be assigned to each committee by the director of the Department of Aviation. (C) The Commission chair shall appoint a Commission member as the committee chair, with the member’s consent. (D) A majority of the total number of appointed committee members constitutes a quorum. (E) Each committee shall meet on a regularly scheduled basis at least quarterly. (F) Each committee shall make an annual report to the Commission at the January Commission meeting. (G) Committee meetings must be posted in accordance with Texas Government Code Chapter 551(Texas Open Meetings Act). 34 (H) At each committee meeting, a committee member shall sign in on a sheet provided and shall indicate that the member has no conflict of interest with any item on the committee meeting agenda, or identify each agenda item on which the member has a conflict of interest. WORKING GROUPS (A) The Commission can determine the size of a working group but the number of Commission members serving on the working group must be less than a quorum of the Commission. (B) A working group may designate a chair, with the member’s consent, but is not required to do so. (C) Quorum requirements do not apply to working groups. (D) Staff support will not be provided for working groups. (E) Working groups are not required to post their meetings in accordance with the Texas Government Code Chapter 551 (Texas Open Meetings Act). ARTICLE 9. PARLIAMENTARY AUTHORITY. The rules contained in the current edition of Robert’s Rules of Order shall govern the Commission in all cases to which they are applicable, except when inconsistent with these bylaws or with special rules of procedure which the Commission or city council may adopt. ARTICLE 10. AMENDMENT OF BYLAWS. A bylaw amendment is not effective unless approved by the Council Audit and Finance Committee. The bylaws were approved by the Austin Airport Advisory Commission at their meeting held on November 10, 2020. Ammie Calderon, Staff Liaison Tracy Thompson, Esq. Airport Chief Officer Administrative & External Affairs Department of Aviation 35