Agenda with Backup — original pdf

Backup

AIRPORT ADVISORY COMMISSION MEETING FEBRUARY 8, 2022 3:00 PM 2716 SPIRIT OF TEXAS DRIVE ROOM 160 (Board Room and Public Comments) ROOM 174 (Public Viewing of Proceedings via videoconference) AUSTIN, TEXAS 78719 Some members of the Commission may be participating via videoconference. Live audio of the meeting will be available as an alternative to attending in person. Please email Steve Khanoyan at Stephen.Khanoyan@austintexas.gov by noon of the day of the meeting for dial-in details. Citizen communication is welcome either in person or via dial-in. Any member of the public wishing to address the Commission in person may sign in before the meeting or, if via dial in, by noon of the meeting date by emailing Steve Khanoyan at Stephen.Khanoyan@austintexas.gov. Please include the phone number you will be calling from in your email. CURRENT BOARD MEMBERS: Eugene Sepulveda, Chair Scott Madole, Vice-Chair Jeremy Hendricks, Secretary Wendy Price Todd Vicky Sepulveda Ernest Saulmon Jonathan Coon Billy Owens Raymond Young Chad Ennis AGENDA CALL TO ORDER CITIZEN COMMUNICATION: GENERAL 1. APPROVAL OF MINUTES January 11, 2022 meeting. 2. STAFF REPORTS a) December 2021 Financial Results. (Prepared by Rajeev Thomas, Deputy Chief of Finance) 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. Please see further instructions on registration above.  b) AUS Air Service Update. (Prepared by Jamy Kazanoff, Air Service Development) 3. STAFF BRIEFINGS a) “Updates from the CEO regarding community meetings related to the proposed fuel facility” presented by Jacqueline Yaft, Chief Executive Officer. b) “Art in Public Places at AUS” presented by Marjorie Flanagan, Acting Program Manager, and Curt Gettman, Senior Project Manager, Arts in Public Places. c) “Construction Training Program” presented by Michelle Pierre, Program Compliance Coordinator, Capital Contracting Office. d) “Airport Expansion and Development Program (AEDP) Updates regarding the baggage handling system, program management support consultant, and airfield construction” presented by Tracy Thompson, Interim Chief Officer of Development, and Shane Harbinson, Deputy Chief of Planning and Development. e) “Notification plan for the Environment Assessment public meeting related to the AEDP” presented by Kane Carpenter, Manager Environmental Services. 4. CONSENT AGENDA a) Authorize negotiation and execution of an amendment to the professional services agreement with AECOM Technical Services Inc., as Technical Baggage Handling System (BHS) Advisor for the ABIA Terminal Centralized Baggage Handling System (BHS) in the amount of $1,834,586 for a total contract amount not to exceed $3,592,586. Scheduled for approval by the City Council at the March 3, 2022 meeting. (Note: This amendment will be awarded in compliance with 49CR Part 26 Disadvantaged Business Enterprise Program. Current participation to date is 12.11% DBE.) b) Authorize negotiation and execution of an amendment to the Design-Build Agreement with The Whiting-Turner Construction Company for construction services for the Existing Terminal Centralized Baggage Handling System Upgrades project in an amount of $157,055,614, for a total not to exceed an amount of $173,113,614. Scheduled for approval by the City Council at the March 3, 2022 meeting. (Note: This amendment will be awarded in compliance with City Code Chapter 2-9A Minority Owned Business Enterprise Procurement Program set at 12.23%. Current participation to date is 25.82% DBE.) 5. ACTION ITEMS None. 2  6. OLD BUSINESS a) City Council meeting on January 27, 2022. • 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. Approved on consent. • Authorize negotiation and execution of a Construction Manager-at-Risk agreement with JE Dunn/Clark, a Joint Venture, for preconstruction and construction services for the Barbara Jordan Terminal in an amount not to exceed $46,000,000. Approved on consent. • Authorize negotiation and execution of four contracts with Ricondo Associates Inc., Unison Consulting, Inc., Leighfisher Inc., and Frasca Associates LLC for financial and other related consulting services, each for a term of five years for total contract amounts not to exceed $2,500,000 divided among the contractors. Result unknown at time of agenda posting. b) City Council meeting on February 3, 2022. 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 scheduled for March 8, 2022 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 tracy.thompson@austintexas.gov. 3  AIRPORT ADVISORY COMMISSION ITEM 1. APPROVAL OF MINUTES January 11, 2 022 - MEETING  AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, JANUARY 11, 2022 The Airport Advisory Commission convened in a regular meeting on Tuesday, January 11, 2022. CALL TO ORDER Chair E. Sepulveda called the Commission Meeting to order at 3:01 p.m. Raymond Young Chad Ennis Vicky Sepulveda Ernest Saulmon Wendy Price Todd Commissioners in Attendance: Eugene Sepulveda – Chair Scott Madole – Vice Chair Jeremy Hendricks - Secretary Billy Owens Commissioners Absent: Jonathan Coon CITIZENS COMMUNICATIONS: None. 1. APPROVAL OF MINUTES a) The minutes from the meeting of October 12, 2021 were approved on Commissioner Saulmon’s motion, Commissioner Young seconded. Motion passed on an 8-0-0-2 vote. Commissioners Coon and Todd were absent. 2. WRITTEN STAFF BRIEFINGS a) “November Financial Results” prepared by Rajeev Thomas, Deputy Chief of Finance. b) “AUS Air Service Update” prepared by Jamy Kazanoff, Air Service Development. 1  3. VERBAL STAFF BRIEFINGS a) “Updates from the Chief Executive Officer regarding carbon neutrality at AUS” presented by Jacqueline Yaft, Chief Executive Officer and Shane Harbinson, Deputy Chief Officer of Planning and Development. b) “Updates from the Chief Executive Officer regarding outreach and scheduling related to the AUS fuel farm community meetings” presented by Jacqueline Yaft, Chef Executive Officer. c) “Airport Expansion and Development Program (AEDP) Update” presented by Tracy Thompson, Interim Chief Officer of Development, and Shane Harbinson, Deputy Chief Officer of Planning and Development. 4. FOR RECOMMENDATION a) Authorize negotiation and execution of four contracts with Ricondo Associates Inc., Unison Consulting, Inc., Leighfisher Inc., and Frasca Assocates LLC for financial and other related consulting services, each for a term of five years for total contract amounts not to exceed $2,500,000 divided among the contractors. A motion to approve was made by Secretary Hendricks; Commissioner Saulmon seconded. Motion passed on an 8-0-0-2 vote. Commissioners Coon and Todd were absent. b) Approve ratification of a contract with Netsync Network Solutions to provide Cisco Smartnet maintenance and support services in the amount of $240,000. A motion to approve was made by Commissioner Saulmon; Commissioner Young seconded. Motion passed on an 8-0-0-2 vote. Commissioners Coon and Todd were absent. c) Authorize negotiation and execution of a Construction Manager-at-Risk agreement with JE Dunn/Clark, a Joint Venture, for preconstruction and construction services for the Barbara Jordan Terminal (BJT) in an amount not to exceed $46,000,000. A motion to approve was made by Vice Chair Madole; Commissioner Saulmon seconded. Motion passed on an 8-0-0-2 vote. Commissioners Coon and Todd were absent. 5. ACTION ITEMS None. 6. OLD BUSINESS City Council actions since the last AAC meeting were reviewed. 2  7. NEW BUSINESS Council Member · a) Review of Commission Recommendations and Actions to discuss with appointing City Passenger traffic for November 2021 exceeded the numbers for November 2019. Cargo traffic is also up by 38 percent. · The AAC recognizes the new nonstop service announcements including London Heathrow (LHR) on Virgin Atlantic as well as service to Amsterdam, Calgary, and Frankfurt. · The Environmental Assessment for the Barbara Jordan Terminal projects is expected in March. · The CEO updated the AAC on the proposed fuel facility and efforts for community outreach. Results of these community meetings is expected by next month. b) Future Agenda Items c) Next scheduled meeting February 8, 2022 at 3:00 p.m. ADJOURNMENT Chair E. Sepulveda adjourned the meeting at 4:07 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 Executive Liaison Tracy Thompson at tracy.thompson@austintexas.gov or Staff Liaisons Steve Khanoyan at (312) 723-2619 or stephen.khanoyan@austintexas.gov and Ammie Calderon at (512) 530-6605 or ammie.calderon2@austintexas.gov. 3  AIRPORT ADVISORY COMMISSION ITEM 2a – WRITTEN STAFF BRIEFINGS December 2021 Financial Results Prepared by Rajeev Thomas, Deputy Chief, Finance  MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: February 8, 2022 SUBJECT: Austin-Bergstrom International Airport (AUS) Update December 2021 Financial Results Total passenger traffic increased 209.3% in December 2021 compared to December 2020 (which was severely impacted by pandemic related concerns). Total passenger traffic in December 2021 exceeded traffic in December 2019 by 8.5%. Table #1 FY 2022 FY 2021 Variance December December Fav (Unfav) FY 2022 YTD FY 2021 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage 808,907 262,934 207.6% 2,364,711 770,313 1,006,798,245 431,926,302 133.1% 2,978,466,792 1,279,714,822 12,893 12,786 0.8% 38,030 35,033 207.0% 132.7% 8.6% Operating Revenue $19,090,847 $10,568,745 $8,522,103 $57,880,964 $31,557,531 $26,323,433 Airport Operating Expenses $8,022,912 $7,552,864 ($470,048) $23,660,862 $22,916,352 ($744,510) Total Requirements $13,460,242 $12,282,604 ($1,177,638) $39,425,458 $37,235,241 ($2,190,218) Net Income Before CARES Act $5,630,605 ($1,713,859) $7,344,464 $18,455,506 ($5,677,709) $24,133,216 Cares Act Reimbursement $0 $3,629,435 ($3,629,435) $0 $11,017,537 ($11,017,537) Net Income After CARES Act $5,630,605 $1,915,576 $3,715,029 $18,455,506 $5,339,828 $13,115,679 Table #1 illustrates December 2021’s enplanements were 207.6% higher than December 2020, serving an additional 545,973 enplaned passengers. Passenger enplanements totaled 808,907 in December 2021 compared to 262,934 in December 2020 and 746,683 in December 2019. Landing weights exceeded 1 billion pounds in December 2021 representing an increase of 133.1% compared to December 2020 and an increase of 18.6% compared to December 2019. Cargo volume totaled 12,893 tons in December 2021 representing an increase of 0.8% compared to December 2020 and an increase of 59.3% compared to December 2019. Monthly operating revenues increased 80.6% or $8.5M compared to December 2020. Totaling $19.1M, December 2021 operating revenues were driven by strong passenger and aircraft traffic related to additional route offerings from multiple airlines and holiday travel. The increased volume of passenger and aircraft traffic resulted in additional airline revenue and non-airline revenues (such as parking and food & beverage). Airport operating expenses increased 6.2% compared to December 2020 due to increased needs associated with the elevated level of passenger traffic as well as the one-time payment of the budgeted compensation adjustment (totaling $370k) within the month of December. AUS reported $5.6M of net income (before CARES ACT) in December 2021 compared to a deficit of ($1.7M) in December 2020. Year-to-Date Fiscal Year 2022 Financial Results Through the third month of Fiscal Year 2022 (FY2022) AUS delivered strong financial performance when compared to the same period in Fiscal Year 2021 (FY2021). FY2022 Year to Date (YTD) Operating Revenue totals $57.9M compared to $31.6M in FY2021, an 83.4% increase. Airport Operating Expenses totaled $23.7M YTD in FY2022 compared to $22.9M in FY 2021, a 3.2% increase. Net income before CARES Act funding totals $18.5M YTD in FY2022 compared to a deficit of ($5.7M) in FY2021, an increase of $24.1M or 425.1%. Table #2 Approved Budget - Seasonalized FY 2022 FY 2022 Budget vs. YTD Variance Budget vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) Operating Revenue $38,717,758 $57,880,964 $19,163,206 Airport Operating Expenses $25,747,627 $23,660,862 Total Requirements $41,512,223 $39,425,458 $2,086,765 $2,086,765 Net Income Before Debt Service $10,082,556 $31,332,527 $21,249,971 Net Income Before CARES Act ($2,794,465) $18,455,506 $21,249,971 Cares Act Reimbursement Net Income After CARES Act $4,545,151 $1,750,687 $0 ($4,545,151) $18,455,506 $16,704,820 49.5% 8.1% 5.0% 210.8% 760.4% (100.0%) 954.2% Through December 2021 AUS has delivered favorable YTD financial performance compared to FY2022 budget on a seasonalized basis due to increased revenue and operating expense savings. As presented in Table #2, YTD FY2022 revenues exceed budgeted revenues by 49.5% or $19.2M. The elevated revenues are driven by the strong passenger traffic in the first three months of the fiscal year. Airport operating expenses are 8.1% or $2.1M below budgeted expenses due primarily to higher than anticipated personnel vacancy rates. Before CARES Act funding application, AUS reports net income of $18.5M, which exceeds the seasonalized budget estimate by $21.2M. Attachments: December 2021 - AAC Financial Report CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 3 Month(s) ended December 31, 2021 FY 2022 Budget Budget Seasonalized 3 month(s) Y-T-D to Budget Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) 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 TOTAL REQUIREMENTS EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS TOTAL OPERATING EXPENSES Debt Service 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 85,929,032 353,379 160,942,229 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 6,248,430 11,805,246 18,053,676 8,763,227 1,110,091 2,896,574 2,653,424 1,274,481 514,774 3,363,167 20,575,737 88,345 38,717,758 15,650,061 1,500,459 7,319,188 1,277,919 25,747,627 1,353,153 1,663,501 2,424,742 3,637,029 3,798,595 12,877,020 112,055 1,538,617 447,523 85,722 83,019 88,280 532,360 0 0 2,887,576 10,184,274 16,637,696 26,821,970 13,536,632 1,891,313 5,019,462 3,678,800 1,560,024 762,187 4,599,073 31,047,490 11,505 57,880,964 14,578,553 1,208,765 5,803,677 2,069,867 23,660,862 1,353,153 1,663,501 2,424,742 3,637,029 3,798,595 12,877,020 112,055 1,538,617 447,523 85,722 83,019 88,280 532,360 0 0 2,887,576 3,935,844 4,832,450 8,768,294 4,773,405 781,222 2,122,888 1,025,377 285,543 247,413 1,235,906 10,471,753 (76,840) 19,163,206 (87.0%) 49.5% 1,071,508 291,693 1,515,512 (791,948) 2,086,765 6.8% 19.4% 20.7% (62.0%) 8.1% 63.0% 40.9% 48.6% 54.5% 70.4% 73.3% 38.6% 22.4% 48.1% 36.7% 50.9% 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% 5.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 172,190,063 41,512,223 39,425,458 2,086,765 CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) TOTAL CARES ACT REIMBURSEMENT (3,569,365) (14,611,240) (18,180,605) (892,341) (3,652,810) (4,545,151) 0 0 0 (892,341) (3,652,810) (4,545,151) (100.0%) (100.0%) (100.0%) EXCESS (DEFICIT) OF TOTAL AFTER CARES ACT 6,932,771 1,750,687 18,455,506 16,704,820 954.2% (11,247,834) (2,794,465) 18,455,506 21,249,971 760.4% Note: Columns may not add to totals shown because of rounding The Compensation Adjustment budgeted within Other Requirements was paid in December 2021. Compensation adjustment expense totaled $370,327.30. As is standard with personnel expenses, the compensation adjustment expense is reflected within Operating Expenses. CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY22 (Dec 21) vs FY21 (Dec 20) Fiscal YTD - This Year vs. Last Year FY22 (Oct 21 - Dec 21) vs FY21 (Oct 20 - Dec 20) FY22 Dec-21 FY21 Dec-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY22 YTD Dec-21 FY21 YTD Dec-20 Fav (Unfav) $ Variance Fav (Unfav) % Variance 3,400,100 5,631,351 9,031,450 1,521,731 3,900,965 5,422,696 4,490,877 567,200 1,441,378 1,232,539 492,884 232,519 1,599,311 10,056,707 1,211,279 168,859 927,401 925,419 482,336 158,149 1,258,644 5,132,086 2,690 19,090,847 13,962 10,568,745 4,953,428 394,662 1,962,458 712,363 8,022,912 0 450,971 554,500 808,247 1,209,263 1,451,823 4,474,805 37,352 512,872 149,174 28,574 0 27,673 29,427 177,453 962,525 4,254,877 334,830 2,655,960 307,198 7,552,864 42 451,131 589,844 836,226 1,277,467 474,021 3,628,732 36,312 527,360 156,605 13,844 0 25,662 25,096 316,130 1,101,008 1,878,368 1,730,386 3,608,754 3,279,598 398,341 513,977 307,120 10,548 74,371 340,667 4,924,621 (11,272) 8,522,103 (698,552) (59,833) 693,501 (405,165) (470,048) 42 160 35,344 27,979 68,204 (977,802) (846,073) (1,040) 14,488 7,431 (14,730) 0 (2,011) (4,331) 138,676 138,483 123.4% 44.4% 66.5% 270.8% 235.9% 55.4% 33.2% 2.2% 47.0% 27.1% 96.0% (80.7%) 80.6% (16.4%) (17.9%) 26.1% (131.9%) (6.2%) 100.0% 0.0% 6.0% 3.3% 5.3% (206.3%) (23.3%) (2.9%) 2.7% 4.7% (106.4%) N/A (7.8%) (17.3%) 43.9% 12.6% 10,184,274 16,637,696 26,821,970 13,536,632 1,891,313 5,019,462 3,678,800 1,560,024 762,187 4,599,073 31,047,490 11,505 57,880,964 14,578,553 1,208,765 5,803,677 2,069,867 23,660,862 0 1,353,153 1,663,501 2,424,742 3,637,029 3,798,595 12,877,020 112,055 1,538,617 447,523 85,722 0 83,019 88,280 532,360 2,887,576 4,510,008 11,641,842 16,151,850 3,722,835 490,972 2,811,007 2,757,884 1,487,180 478,618 3,603,791 15,352,287 53,394 31,557,531 13,720,390 1,087,070 7,178,669 930,224 22,916,352 127 1,352,714 1,769,246 2,508,679 3,963,035 1,422,063 11,015,863 108,936 1,582,080 469,815 41,532 0 76,986 75,288 948,389 3,303,025 5,674,265 4,995,854 10,670,120 9,813,797 1,400,341 2,208,455 920,916 72,844 283,568 995,282 15,695,203 (41,890) 26,323,433 (858,164) (121,695) 1,374,992 (1,139,644) (744,510) 127 (439) 105,745 83,937 326,006 (2,376,532) (1,861,157) (3,119) 43,463 22,293 (44,190) 0 (6,033) (12,992) 416,028 415,450 125.8% 42.9% 66.1% 263.6% 285.2% 78.6% 33.4% 4.9% 59.2% 27.6% 102.2% (78.5%) 83.4% (6.3%) (11.2%) 19.2% (122.5%) (3.2%) 100.0% (0.0%) 6.0% 3.3% 8.2% (167.1%) (16.9%) (2.9%) 2.7% 4.7% (106.4%) N/A (7.8%) (17.3%) 43.9% 12.6% 5,630,605 (1,713,859) 7,344,464 428.5% 18,455,506 (5,677,709) 24,133,216 425.1% 0 0 (3,629,435) (3,629,435) (3,629,435) (3,629,435) (100.0%) (100.0%) 0 0 (11,017,537) (11,017,537) (11,017,537) (11,017,537) (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 13,460,242 12,282,604 (1,177,638) (9.6%) 39,425,458 37,235,241 (2,190,218) (5.9%) TOTAL SURPLUS (DEFICIT) AFTER CARES ACT 5,630,605 1,915,576 3,715,029 193.9% $ 18,455,506 $ 5,339,828 $ 13,115,679 245.6%  AIRPORT ADVISORY COMMISSION ITEM 2b – WRITTEN STAFF BRIEFINGS AUS Air Service Update Prepared by Jamy Kazanoff, Air Service Development  February 2022 Air Service Snapshot TSA throughput has generally exceeded two million passengers per day nationally throughout the holiday period but now average close to 1.4 million per day. This is generally a slower time of year for business and leisure travel but the omicron variant and airline operational challenges haven’t helped. Airlines are starting to see a recovery in bookings from late December/early January across all channels – domestic and international, corporate and leisure. The chart below shows how COVID-19 has affected AUS capacity with monthly comparisons to 2019. Some carriers are returning to a more typical scheduling timeline where schedules are firmed 3 or more months out but some are still making close-in changes due to the spread of the omicron variant. Based on currently filed schedules, capacity will be 30% above 2019 levels in February, 32% in March and 40% in April – yet still subject to change as carriers continue to adjust close-in capacity. The route map on the next page provides a snapshot of current air service at AUS. Highlights of recent air service announcements/developments include:  Virgin Atlantic announced new nonstop service to London (Heathrow) starting on May 25 with four weekly flights operated with the 258-seat B787-9  American announced new Saturday-only service to CZM & MBJ starting June 11  Allegiant opened its new base in November with 89 employees and three A320s; new service started to AMA, FSD, PBI, PGD, PVU, SDF, SGF, SNA & TUL  British Airways resumed LHR service on Oct. 13 and will increase to daily service in May  Air Canada returned to AUS on Oct. 2, increases to two daily flights in May  KLM loaded AMS service starting March 28, 2022 with 3/week on the 292-seat A330-300  Lufthansa has deferred service restoration to April 8, 2022 with three weekly flights  WestJet is scheduled to return on May 1, 2022  Hawaiian added a third weekly frequency eff. Dec. 12; additional frequencies were also added in March  Southwest will add nonstop service to AMA, CHS, CMH, MAF, ONT & PVR in early 2022; new daily service to TUL starts April 25; new Saturday only service to CZM starts June 11  Alaska will serve PSP 5/wk from November 19 – May 18  Sun Country will serve CUN twice weekly May 26 – August 15 but will not serve MSP in 2022  Southwest remains the largest carrier at AUS by capacity. American has gained 10 points of capacity share since 2019. United and Delta have lost capacity share as United has not reinstated all pre-COVID service and although Delta has grown since 2019 it has grown less than other carriers. Southwest’s share will increase further once additional new service is started this Spring. Allegiant has also gained capacity share since 2019, with the opening of an aircraft and crew base. AIRPORT ADVISORY COMMISSION ITEM 4a – FOR RECOMMENDATION Authorize negotiation and execution of an amendment to the professional services agreement with AECOM Technical Services Inc., as Technical Baggage Handling System (BHS) Advisor for the ABIA Terminal Centralized Baggage Handling System (BHS) in the amount of $1,834,586 for a total contract amount not to exceed $3,592,586. City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 22-1262, Agenda Item #: 3/3/2022(cid:4) Posting Language Authorize negotiation and execution of an amendment to the professional services agreement with AECOM Technical Services Inc., as Technical Baggage Handling System (BHS) Advisor for the ABIA Terminal Centralized Baggage Handling System (BHS) in the amount of $1,834,586 for a total contract amount not to exceed $3,592,586. This amendment will be awarded in compliance with 49CR Part 26 (Disadvantaged Business Enterprise Program). Current participation to date is 12.11% DBE. Lead Department Financial Services Department Managing Department Department of Aviation Fiscal Note Funding is available in the Fiscal Year 2021-2022 Capital Budget of the Department of Aviation Purchasing Language: Original contract was awarded through a qualifications-based selection process Prior Council Action: January 23, 2020 - Amendment for additional Program Management services December 14, 2017 - Council approved a professional services agreement with AECOM Technical Services Inc. for the ABIA Terminal Centralized Baggage Handling System Design Criteria Manuel (DCM). 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, Beverly Mendez, 512-974-3596, or the Project Managers, Joe Medici, 512-974-7274 and Rohini Kumarage 512-530-7547. Council Committee, Boards and Commission Action: To be reviewed by the Airport Advisory Commission on February 8, 2022. Additional Backup Information: AECOM provides specialty subject matter expert (SME) services for the AUS Airport Project Management team to ensure that industry best practices are incorporated. AECOME serves as an independent 3rd party for City of Austin Page 1 of 2 Printed on 1/26/2022 powered by Legistar™ (cid:5) (cid:6) File #: 22-1262, Agenda Item #: 3/3/2022(cid:4) the airport in review of alternatives proposed, evaluation of cost estimates, as well as review and recommendation regarding phasing, scheduling, cutovers, testing, inspection, and contingency operation considerations. AECOM has provided a variety of technical experts who may be called upon throughout the BHS project’s lifecycle for various tasks only upon request by AUS. AECOM will also provide on-site observation, review, and support services for AUS during construction, installation, and testing. AUS Project Managers and technical personnel are tasked with several vital operational duties and the ability to provide technical support on a continuous basis is not possible. AECOM assisted the AUS in development of the Basis of Design Documents for the program as well as continuing the advisory SME role providing clear communication and reviews back to the AUS management team. The AECOM team provided support to AUS during Covid and has been a reliable partner for AUS throughout the pandemic with continued on-site support and travel when needed in addition to multiple adjustments of workflows to support new project timelines. This amendment will allow for maintained continuity during the execution stages of the project. AECOM BHS SME’s have provided support on past BHS projects prior to this one as a Designer and Project Manager and will use this extensive experience and knowledge of the AUS systems to allow the AUS management and operations team to focus on day-to-day airport operational issues. With AECOM in this role, AUS staff can confidently make decisions with the understanding that the technical specialist team is available to provide 3rd party observation and recommendations, reviews, inspections, testing oversight and ultimately provide written reports to AUS capturing potential issues before they arise. This vital support will reduce the opportunities for errors, omissions, and costly schedule and cost changes during execution. This contract has no impact to the public. If not approved, this will impact the Aviation Department’s ability to provide appropriate technical review for mitigation of risk by performance of the Design Builder. This amendment is pending review by the City’s Change Control Committee. The Change Control Committee was established to comply with Council Resolution No. 20120126-048, which required the establishment of consistent criteria and process to evaluate contractual changes for all contracts administered by the Capital Contracting Office. The Change Control Committee is comprised of management-level subject matter experts. AECOM Technical Services Inc. is located in Austin, Texas. Strategic Outcome(s): Safety, Economic Opportunity and Affordability, Health and Environment, and Mobility . City of Austin Page 2 of 2 Printed on 1/26/2022 powered by Legistar™ (cid:5) (cid:6) AIRPORT ADVISORY COMMISSION ITEM 4b – FOR RECOMMENDATION Authorize negotiation and execution of an amendment to the Design-Build Agreement with The Whiting-Turner Construction Company for construction services for the Existing Terminal Centralized Baggage Handling System Upgrades project in an amount of $157,055,614, for a total not to exceed an amount of $173,113,614. City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 22-1274, Agenda Item #: Posting Language Authorize negotiation and execution of an amendment to the Design-Build Agreement with The Whiting-Turner Construction Company, for construction services for the Existing Terminal Centralized Baggage Handling System Upgrades project in an amount of $157,055,614, for a total not to exceed amount of $173,113,614. [Note: This amendment will be awarded in compliance with City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) set at 12.23%. Current participation to date is 25.82% DBE] Lead Department Financial Services Department Managing Department Public Works Department. Fiscal Note Funding is available in the Fiscal Year 2021 - 2022 Capital Budget of the Department of Aviation. Purchasing Language: Original contract was awarded through a qualifications-based selection process. Prior Council Action: June 20, 2019 - City Council authorized use of Design- Build methodology. October 19, 2019 - City Council authorized negotiation and execution of a Design Build agreement not to exceed $16,000,000. For More Information: Inquiries should be directed to the City Manager’s Agenda Office, at 512-974-2991 or AgendaOffice@austintexas.gov. NOTE: Inquiries can be directed to Rolando Fernandez, 512-974-7749, Beverly Mendez, 512,974-3596, or Project Managers, Joseph Medici, 512-974-7274 and Rohini Kumarage 512-530-7547. Council Committee, Boards and Commission Action: To be reviewed by the Aviation Boards and Commissions on February 8th, 2022. Additional Backup Information: A vital infrastructure to the airport, the project provides for a new centralized baggage handling system (BHS) that will improve airport flow of baggage and passengers, support the Transportation Security Administration’s efficiency, and future growth of the airport. This contract allows Department of Aviation staff to work with a City of Austin Page 1 of 2 Printed on 1/27/2022 powered by Legistar™ File #: 22-1274, Agenda Item #: highly qualified design and construction team to explore design alternatives, costs, locations, construction schedule of a long-term reconfiguration and replacement of the BHS included in the 2040 AUS Masterplan and future operational requirements. Council’s prior authorization of $16,000,000 was an estimate to implement short-term upgrades to the system, consider alternatives to bridge the gap in BHS performance over the past few years and recommend acceleration of certain masterplan projects. Council’s approval provided for preliminary and design phase services including schematic design, design development, construction documents, constructability reviews, value engineering, cost estimating, scheduling, development of a safety program, quality assurance, site security, environmental protection plans, permitting, pre-construction services. The initial long term project estimate of $94,000,000 considered an immediate and long-term solution for the equipment improvements to the baggage handling system. Results derived from preliminary design, an optimization study and recommendations from the BHS equipment manufacturer provided a more accurate cost estimate for the project including infrastructure improvements and a building expansion. The new cost estimate of $157,055,614 will allow completion of the design and construction of the full BHS for AUS to construct a solution that meets the demand of 30 million annual passengers. . Disadvantage Business Enterprise (DBE) subcontractor outreach and all other services associated with the development of work packages for construction phase services and negotiation of the guaranteed maximum price (GMP) will be completed in 2022. Design Builder will continue to hold community involvement and outreach throughout the construction phase for an estimated project completion in summer 2024. Whiting-Turner Contracting Co. is located in Austin, TX.. Strategic Outcome(s): (cid:48)(cid:82)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92) City of Austin Page 2 of 2 Printed on 1/27/2022 powered by Legistar™