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AIRPORT ADVISORY COMMISSION MEETING MARCH 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. Public 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 PUBLIC COMMUNICATION: GENERAL 1. APPROVAL OF MINUTES February 8, 2022 meeting. 2. STAFF REPORTS a) January 2022 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 budget amendment for FY 2022 and fuel facility community meeting update” presented by Jacqueline Yaft, Chief Executive Officer. b) “A Decade of Growth: Austin’s Population and Demographic Trends” presented by Lila Valencia, City Demographer. c) “Plan of Finance for the 2022 Bond Issuance” presented by Rajeev Thomas, Deputy Chief Officer of Finance. d) “Airport Expansion and Development Program (AEDP) Updates regarding the FAA Bipartisan Infrastructure Legislation (BIL) criteria and AUS plan an update on the Environmental Assessment outreach program” presented by Lyn Estabrook, Manager of Planning & Development. 4. CONSENT AGENDA a) Approve a resolution authorizing acceptance of grants from the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to the City of Austin, Department of Aviation, for Austin-Bergstrom International Airport for Fiscal Years 2022-2024 in an amount not to exceed $320,000,000. Scheduled for approval by the City Council on March 24, 2022. (Note: Grant reimbursement will apply to projects in the Fiscal Years 2022-2024 Approved Capital and/or Operating Budgets of the Aviation Department. Grant funds will be placed in the Airport Capital Fund, the Improvement Funds, and/or the Operating Fund.) b) Authorize award of a contract with Aviramp Ltd. for mobile air stairs in an amount not to exceed $489,410. Scheduled for approval by the City Council on March 24, 2022. (Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9D. There were no minority subcontractors certified and available to provide aircraft boarding ramps. This is a specialized commodity that includes providing the stairs and installation and that does not have any other subcontracting opportunities.) c) Authorize negotiation and execution of a cooperative contract with Ecolab Inc, for pest control services, for a term of five years in an amount not to exceed $600,000. Scheduled for approval by the City Council on April 7, 2022. (Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9D. There was 1 WBE subcontractor certified and available to provide pest control services at the airport. This is a single-scope of service that does 2  not have other subcontracting opportunities.) 5. ACTION ITEMS None. 6. OLD BUSINESS a) City Council meeting on February 3, 2022. • 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. Approved on consent. • Authorize negotiation and execution of a contract with COBUS Industries, LP for a low floor airside transport bus, in an amount not to exceed $470,000. Approved on consent. b) City Council meeting on February 17, 2022. c) City Council meeting on March 3, 2022. • 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. Result unknown at time of agenda posting. • 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. Result unknown at time of agenda posting. a) Review of Commission Recommendations and Actions to discuss with appointing 7. NEW BUSINESS City Council Member. b) Future Agenda Items. c) Next regular meeting scheduled for 3:00PM on April 12, 2022. 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. 3 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. 4  AIRPORT ADVISORY COMMISSION ITEM 1 - APPROVAL OF MINUTES February 8, 2 022 - MEETING  AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, FEBRUARY 8, 2022 The Airport Advisory Commission convened in a regular meeting on Tuesday, February 8, 2022. CALL TO ORDER Chair E. Sepulveda called the Commission Meeting to order at 3:02 p.m. Raymond Young* Chad Ennis* Vicky Sepulveda Ernest Saulmon Commissioners in Attendance: Eugene Sepulveda – Chair Scott Madole – Vice Chair Jeremy Hendricks – Secretary* Billy Owens Wendy Price Todd* (*attended via videoconference) Commissioners Absent: Jonathan Coon CITIZENS COMMUNICATIONS: None. 1. APPROVAL OF MINUTES a) The minutes from the meeting of January 11, 2022 were approved on Commissioner Saulmon’s motion, Commissioner Young seconded. Motion passed on an 8-0-0-2 vote. Secretary Hendricks and Commissioner Coon were absent. 2. WRITTEN STAFF BRIEFINGS a) “December Financial Results” prepared by Rajeev Thomas, Deputy Chief of Finance. b) “AUS Air Service Update” prepared by Jamy Kazanoff, Air Service Development. 1  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 Lyn Estabrook, Planning & Development Manager. e) “Notification plan for the Environment Assessment public meeting related to the AEDP” presented by Kane Carpenter, Manager Environmental Services, and Sam Haynes, Acting Public Information & Marketing Manager. 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. 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. A motion to approve the consent agenda was made by Commissioner V. Sepulveda; Commissioners Young and Saulmon seconded. Motion passed on an 8-0-1-1 vote. Vice Chair Madole abstained. Commissioner Coon was 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 · December 2021 passenger traffic exceeded December 2019 numbers. · Air cargo traffic continues vigorous growth. · New service by Virgin Atlantic Airways to London (LHR) has been announced. · We do not yet know the impact of the proposed merger between Spirit Airlines and Frontier Airlines at AUS. · The CEO reported to the Commission information regarding the public meetings on the proposed new fuel facility and took constructive feedback for future community interaction. · The Construction Training Program is going well with 70% of the 323 enrollees since 2019 in the apprenticeship program or graduated. · The environmental assessment for the AEDP is near completion. A draft is expected later this month. b) Future Agenda Items · Discussion of the COBUS bus purchase on the March agenda. · The AAC requests a future update on CBP capacity in the FIS facility. · A potential special meeting of the AAC may be called to further discuss the proposed fuel facility. c) Next scheduled meeting March 8, 2022 at 3:00 p.m. ADJOURNMENT Chair E. Sepulveda adjourned the meeting at 4:48 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 – STAFF REPORTS January 2022 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 – STAFF REPORTS AUS Air Service Update Prepared by Jamy Kazanoff, Air Service Development  According to Bank of America, there are reasons for airlines and airports to be optimistic: March 2022 Air Service Snapshot  System net sales improved for the sixth straight week to down -39% v. 2019, which is now evident in TSA figures  (now only down -17%) Leisure bookings are nearly back to pre-pandemic levels ahead of the President’s Day holiday and expect leisure demand to continue to improve into March spring break and Easter holiday.  Bookings through small travel agencies reached their best level during the pandemic and expect to see faster pickup in large corporate bookings once offices return more broadly in coming weeks.  Especially bullish about the summer as Europe has eased restrictions and Canada is set to do so in March. 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 26% above 2019 levels in March, 31% in April and 32% in May – yet still subject to change as carriers continue to adjust close-in capacity. In fact, for Q1 2022 v. 2019, AUS was the fastest growing medium hub airport based on capacity up 32%, where the average medium hub was down 7%. 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 will start new nonstop service to London (Heathrow) starting on May 25 with four weekly flights operated with the 258-seat B787-9  Air Canada will increase Toronto to two daily flights in late June; new nonstop service to YVR (Vancouver) starts 4/week on June 1 but discontinue IAD  American announced new Saturday-only service to CZM & MBJ eff. June 11; AA will start SNA and BZN in June  Allegiant opened its new base in November with 89 employees and three A320s; new service started to FSD, PBI, PGD, PVU, SDF, SGF, SNA & TUL; G4 will add IAD, SAN & SRQ in April  British Airways will increase to daily A350-1000 service in May  KLM loaded AMS service eff. 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  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 CZN starts June 11  Alaska will serve PSP 5/wk through May 16 and resume on November 18  Sun Country will serve CUN twice weekly May 26 – August 15 but will not serve MSP in 2022  WestJet has suspended its return until Summer 2023 Southwest is still the largest carrier at AUS by capacity but American is now much closer in size having gained 8 points of capacity share since 2019. United and Delta have lost capacity share as United has not reinstated pre-COVID service and Delta has grown since 2019 but less than other carriers. Southwest’s share will increase further once additional new service is started this Spring. Also notable is that Alaska’s share is up since 2019 as they have nearly doubled frequencies and grown capacity by 61%, not to mention entered three new markets (BOI, LAX & PSP). AIRPORT ADVISORY COMMISSION ITEM 4a – CONSENT AGENDA Approve a resolution authorizing acceptance of grants from the FAA, DHS, and other state and federal agencies to the City of Austin, Department of Aviation, for AUS for Fiscal Years 2022-2024 in an amount not to exceed $320,000,000. City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 22-1404, Agenda Item #: 4. 3/24/2022(cid:4) Posting Language Approve a resolution authorizing acceptance of grants from the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to the City of Austin, Department of Aviation, for Austin-Bergstrom International Airport for Fiscal Year 2022-2024 in an amount not to exceed $320,000,000. Grant reimbursement will apply to projects in the Fiscal Year 2022-2024 Approved Capital and/or Operating Budgets of the Aviation Department. Grant funds will be placed in the Airport Capital Fund, the Improvement Funds, and/or the Operating Fund. Lead Department Aviation Department. Fiscal Note There is no unanticipated fiscal impact. Prior Council Action: N/A. The General Fund will not be required to contribute to this grant. For More Information: Rajeev Thomas, Deputy Chief of Finance, Department of Aviation, (512) 530-2463. Council Committee, Boards and Commission Action: To be reviewed by the Airport Advisory Commission on March 8th, 2022. Additional Backup Information: Approval of this request will allow the City Manager or the Executive Director of the Department of Aviation to execute the grants offered by the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to Austin-Bergstrom International Airport during Fiscal Year 2022-2024. This will allow the City to be in a position to quickly accept and execute grant offers as they are made available. Grant Amounts, as they may become available, would fund terminal area improvements, noise mitigation, airfield improvements, and security related projects at Austin-Bergstrom International Airport and reduce the need to utilize airport-generated capital. Grant funding may also reimburse operating expenses. Strategic Outcome(s): Mobility. City of Austin Page 1 of 1 Printed on 2/25/2022 powered by Legistar™ (cid:5) (cid:6) AIRPORT ADVISORY COMMISSION ITEM 4b – CONSENT AGENDA Authorize award of a contract with Aviramp Ltd. for mobile air stairs in an amount not to exceed $489,410. City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 22-1511, Agenda Item #: 3/24/2022(cid:4) Posting Language Authorize award of a contract with Aviramp Ltd. for mobile air stairs, in an amount not to exceed $500,000. (Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2- 9D Minority Owned and Women Owned Business Enterprise Procurement Program. For the goods required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established). Lead Department Financial Services Department. Client Department(s) Aviation. Fiscal Note Funding is available in the Fiscal Year 2021-2022 Capital Budget of Aviation. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) 8100 MMO1025 for these goods. The solicitation was issued on January 17, 2022, and it closed on February 8, 2022. Of the three offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s Financial Services website, Austin Finance Online. Link: Solicitation Documents <https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=136294>. Prior Council Action: For More Information: Respondents to this solicitation, and their representatives, shall continue to direct inquiries to the solicitation’s Authorized Contact Persons: Marian Moore, at 512-974-2062 or Marian.Moore@austintexas.gov <mailto:Marian.Moore@austintexas.gov> or Richard Whipple, at 512-974-3349 or Richard.Whipple@austintexas.gov <mailto:Richard.Whipple@austintexas.gov>. Council Committee, Boards and Commission Action: March 8, 2022 - To be reviewed by the Airport Advisory Commission. Additional Backup Information: The contract is for a one-time purchase of three mobile air stairs for the Austin-Bergstrom International Airport (AUS). Mobile air stairs are required for Aviation to allow AUS to embark and disembark passengers from a variety of types of aircraft without the use of a boarding bridge or gate. The use of the air stairs will allow AUS City of Austin Page 1 of 2 Printed on 2/28/2022 powered by Legistar™ (cid:5) (cid:6) File #: 22-1511, Agenda Item #: 3/24/2022(cid:4) to accommodate the increase in passenger traffic in a safe and convenient manner. AUS has worked to identify this solution to immediately respond to rapid growth in an effort to meet the demand for service. AUS passenger and flight traffic has rebounded significantly. As a result, in November 2021, AUS airlines made public announcements that they would increase service levels leading up to Spring 2022 and beyond. This increase will result in multiple airport peak hours at AUS, and a requirement to provide a higher standard of service and responsiveness. In addition to this increase in air service, AUS is also the primary airport for diverted flights from Houston and Dallas-Fort Worth. As AUS is under tremendous pressure to increase capacity, a decision was made to implement hardstand operations. This process involves establishing bus gates and transferring passengers to aircraft using COBUS and mobile air ramp stair units. Strategic Outcome(s): Mobility. City of Austin Page 2 of 2 Printed on 2/28/2022 powered by Legistar™ (cid:5) (cid:6) AIRPORT ADVISORY COMMISSION ITEM 4c – CONSENT AGENDA Authorize negotiation and execution of a cooperative contract with Ecolab Inc for pest control services for a term of five years in an amount not to exceed $600,000. City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 22-1512, Agenda Item #: 4/7/2022(cid:4) Posting Language Authorize negotiation and execution of a cooperative contract with Ecolab Inc. for pest control services, for a term of four years in an amount not to exceed $600,000. (Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9C Minority Owned and Women Owned Business Enterprise Procurement Program. For the services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established). Lead Department Financial Services Department. Client Department(s) Aviation. Fiscal Note Funding in the amount of $60,000 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. Purchasing Language: Multiple cooperative purchase programs were reviewed for these services. The Financial Services Department has determined this contractor best meets the needs of the department to provide the services required at the best value for the City. Prior Council Action: For More Information: Inquiries should be directed to Jo Gutierrez, at 512-974-2928 or Jo.Gutierrez@austintexas.gov <mailto:Jo.Gutierrez@austintexas.gov>. Council Committee, Boards and Commission Action: March 8, 2022 - To be reviewed by the Airport Advisory Commission. Additional Backup Information: The contract will provide pest control services for the Austin-Bergstrom International Airport (AUS) and Aviation facilities. The contractor will implement an Integrated Pest Management (IPM) program as a strategy for the control of pests. The IPM program is a balanced, tactical approach to pest control. It involves anticipating pest outbreaks, preventing potential damage and careful limited use of chemical and biological pesticides. The objective of the IPM program is to prevent and eliminate pests inside AUS and Aviation City of Austin Page 1 of 2 Printed on 2/28/2022 powered by Legistar™ (cid:5) (cid:6) File #: 22-1512, Agenda Item #: 4/7/2022(cid:4) facilities to minimize potential disruptions to the conduct of business. The current contract expires on June 5, 2022. The requested amounts were determined using departmental estimates based on historical, current, and projected spending data. The recommended contractor is the current provider for these services. The Texas Multiple Award Schedule cooperative establishes competitively bid contracts that can be utilized by the State and other government agencies through a cooperative agreement. Cooperative agreements save taxpayer dollars by leveraging the State’s volume-buying power to drive down costs on hundreds of contracts through a streamlined cooperative purchasing program. Strategic Outcome(s): Health and Environment. City of Austin Page 2 of 2 Printed on 2/28/2022 powered by Legistar™ (cid:5) (cid:6)