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AIRPORT ADVISORY COMMISSION MEETING APRIL 12, 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. INTRODUCTION OF NEW EXECUTIVE STAFF a) Jill Goodman, Deputy Chief of Innovation and Strategy b) Kevin Russell, Deputy Chief of Talent 2. APPROVAL OF MINUTES March 8, 2022 meeting. 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.  3. STAFF REPORTS a) February 2022 Financial Results. (Prepared by Rajeev Thomas, Deputy Chief of Finance) b) AUS Air Service Update. (Prepared by Jamy Kazanoff, Air Service Development) 4. STAFF BRIEFINGS a) Financial updates and status and schedule of bonds issuance presented by Rajeev Thomas, Deputy Chief Officer Finance. b) Introduction of HNTB presented by Tracy Thompson, Chief Officer of Administration and External Affairs and Julie Wienberg, VP Aviation Architecture, HNTB. c) Airport Expansion and Development Program (AEDP) Updates regarding solicitations, environmental assessment status and public comments, and terminal optimization presented by Lyn Estabrook, Manager of Planning & Development. d) Updates on the proposed fuel facility presented by Tracy Thompson, Chief Officer of Administration and External Affairs. Officer of Operations. e) Operation Report on March 28, 2022 situation presented by Ghizlane Badawi, Chief 5. CONSENT AGENDA a) Authorize negotiation and execution of a cooperative contract with SHI-Government Solutions, Inc. for network management software for a term of three years in an amount not to exceed $315,000. Scheduled for approval by the City Council on May 19, 2022. (Note: These services are single-scope and do not have subcontracting opportunities; therefore, no subcontracting goals were established in accordance with City Code Chapter 2-9C. This is a cooperative agreement that allows the City of Austin to utilize vendors on the Department of Information Resources list.) 6. ACTION ITEMS a) Nomination and election of officers for the term beginning May 1, 2022. b) Changes to the AAC bylaws related to Council Resolution 20220217-033. c) Reminder of absentee policy per the AAC Bylaws and City Code. 2  7. OLD BUSINESS a) City Council meeting on March 24, 2022. • Ratify a contract with Netsync Network Solutions to provide Cisco Smartnet maintenance and support services in the amount of $240,000. Approved on consent. • 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. Approved on consent. • Approve an ordinance amending the Fiscal Year 2021-2022 Aviation Department Operating Budget Airport Operating Fund (Ordinance No. 20210811-001) to recognize additional revenue in the amount of $2,268,614, increase appropriations in the amount of $2,268,614, and increase the number of authorized positions by 80 full-time equivalents to provide additional staff to support the rapid and unprecedented increase in passenger and aircraft traffic at Austin-Bergstrom International Airport. Approved on consent. • Authorize award of a contract with Aviramp Ltd. for mobile air stairs in an amount not to exceed $500,000. Approved on consent. b) City Council meeting on April 7, 2022. • 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. Result unknown at time of agenda posting. • Approve a resolution directing the City Manager to identify alternative locations for the construction of the new Jet-A fuel facility at the Austin- Bergstrom International Airport; prepare a draft Environmental Assessment for the alternative locations, including a detailed Environmental Justice analysis, for the purpose of receiving public input; and present to Council for approval the draft Environmental Assessment prior to publishing for notice and comment. Result unknown at time of agenda posting. c) Item approved by the AAC, but pulled from the City Council agenda as it was determined that contract ratification was not needed. • Ratify a contract with Netsync Network Solutions to provide Cisco Smartnet maintenance and support services in the amount of $240,000. a) Review of Commission Recommendations and Actions to discuss with appointing 8. NEW BUSINESS City Council Member. b) Future Agenda Items. 3 c) Next regular meeting scheduled for 3:00 PM on May 10, 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. 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 2 - APPROVAL OF MINUTES March 8, 2 022 - MEETING  AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, MARCH 8, 2022 The Airport Advisory Commission convened in a regular meeting on Tuesday, March 8, 2022. CALL TO ORDER Chair E. Sepulveda called the Commission Meeting to order at 3:01 p.m. Commissioners in Attendance: Eugene Sepulveda – Chair Scott Madole – Vice Chair Jeremy Hendricks – Secretary* Jonathan Coon * (*attended via videoconference) Commissioners Absent: Billy Owens CITIZENS COMMUNICATIONS: Raymond Young* Wendy Price Todd Vicky Sepulveda Ernest Saulmon Chad Ennis a) Bobbie Garza-Hernandez was allotted 3 minutes to address the Commission by telephone. b) Gavino Fernandez was allotted 3 minutes to address the Commission by telephone. 1. APPROVAL OF MINUTES a) The minutes from the meeting of January 11, 2022 were approved on Commissioner Saulmon’s motion; Commissioner V. Sepulveda seconded. Motion passed on an 8-0-0-2 vote. Commissions Owens and Ennis were absent. 2. STAFF REPORTS a) “January 2022 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 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 and Dennis Waley, Managing Director PFM. The Commission expressed its concern that this bond issuance was not submitted to the Commission for recommendation. The Commission have asked that all components of the AEDP financing be routed to it or its working group for better recommendation to Council. 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. b) Authorize award of a contract with Aviramp Ltd. for mobile air stairs in an amount not to exceed $489,410. 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 A motion to approve the consent agenda was made by Commissioner Young; Commissioner V. Sepulveda seconded. Motion passed on a 7-0-0-3 vote. Secretary Hendricks and Commissions Owens and Ennis 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 January airline revenue is up year-over-year while non-airline revenue is flat. · · AUS is the fastest growing airport in the country with 86 nonstop destinations, including 14 international. New service to Monterrey, Mexico was recently announced. · The CEO reported that the airport has 138 vacancies and is in the process of hiring 90 positions. The CEO also reported on the most recent community meeting regarding the proposed fuel facility. · A $400 million bond issuance is new information to the Commission. The Commission requests Aviation more notice and involvement in the future. · AUS is to be prioritized for new FAA and BIL grants. Election of officers will occur next month. Steve Khanoyan to email the Commission the Environmental Assessment meeting information for the AEDP. c) Next scheduled meeting April 12, 2022 at 3:00 p.m. b) Future Agenda Items · · ADJOURNMENT Chair E. Sepulveda adjourned the meeting at 4:47 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 3a – STAFF REPORTS February 2022 Financial Results Prepared by Rajeev Thomas, Deputy Chief, Finance  MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: April 12, 2022 SUBJECT: Austin-Bergstrom International Airport (AUS) Update February 2022 Financial Results Total passenger traffic increased 249.0% in February 2022 compared to February 2021 (which was severely impacted by the decline in travel demand due to the COVID-19 pandemic). Total passenger traffic in February 2022 is 96.5% of the traffic in February 2020 (prior to COVID-19 impact); however, it should be noted that February 2020 had 29 days compared to 28 days in February 2021 and 2022. The average daily enplaned passengers in February 2022 was 21,493 which is slightly above the average of 21,418 passengers in February 2020 (pre-pandemic). Table #1 FY 2022 February FY 2021 February Variance Fav (Unfav) FY 2022 YTD FY 2021 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage 601,799 173,593 246.7% 3,503,949 1,145,700 844,756,443 303,710,832 178.1% 4,777,328,547 1,982,642,373 10,931 6,157 77.5% 60,843 51,118 205.8% 141.0% 19.0% Operating Revenue $16,326,604 $9,795,318 $6,531,286 $91,187,951 $51,785,683 $39,402,268 Airport OPEX $7,192,771 $7,180,039 ($12,732) $38,673,782 $34,154,424 ($4,519,358) Total Requirements $12,630,101 $11,909,612 ($720,489) $65,313,038 $57,932,458 ($7,380,580) Net Income Before Federal Relief $3,696,503 ($2,114,294) $5,810,797 $25,874,913 ($6,146,775) $32,021,687 Federal Relief Reimbursement $396,717 $3,629,635 ($3,232,918) $20,517,441 $18,276,563 $2,240,879 Net Income After Federal Relief $4,093,220 $1,515,341 $2,577,879 $46,392,354 $12,129,788 $34,262,566 Table #1 illustrates February 2022’s enplanements were 246.7% higher than February 2021, serving an additional 428,206 enplaned passengers. Passenger enplanements totaled 601,799 in February 2022 compared to 173,593 in February 2021 and 621,120 in February 2020. Landing weights totaled 844.8 million pounds in February 2022 representing an increase of 178.1% compared to February 2021 and an increase of 10.4% compared to February 2020. Cargo volume totaled 10,931 tons in February 2022 representing an increase of 77.5% compared to February 2021 (which was affected by Storm Uri) and an increase of 51.4% compared to February 2020. Monthly operating revenues increased 66.7% or $6.5M compared to February 2021. Totaling $16.3M, February 2022 operating revenues reflect strong financial performance resulting from increasing passenger traffic. AUS reported $3.7M of net income (before federal relief funding) in February 2022 compared to net loss of $2.1M in February 2021. Year-to-Date Fiscal Year 2022 Financial Results Through the fifth 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 $91.2M compared to $51.8M in FY2021, a 76.1% increase. Airport Operating Expenses totaled $38.7M YTD in FY2022 compared to $34.2M in FY2021, a 13.2% increase. Net income before federal relief funding totals $25.9M YTD in FY2022 compared to a deficit of ($6.1M) in FY2021, an increase of $32.0M or 521.0%. Table #2 Approved Budget - Seasonalized FY 2022 FY 2022 Budget vs. YTD Variance Budget vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) Operating Revenue $63,370,851 $91,187,951 $27,817,099 Airport OPEX $40,594,792 $38,673,782 $1,921,010 Total Requirements $67,234,048 $65,313,038 $1,921,010 Net Income for Debt Service $17,963,434 $47,701,543 $29,738,109 Net Income Before Federal Relief ($3,863,196) $25,874,913 $29,738,109 Federal Relief Reimbursement $7,575,252 $20,517,441 $12,942,189 Net Income After Federal Relief $3,712,056 $46,392,354 $42,680,298 43.9% 4.7% 2.9% 165.5% 769.8% 170.8% 1149.8% Through February 2022 AUS has delivered favorable YTD financial performance compared to FY2022 budget on a seasonalized basis due to increased revenue, operating expense savings, and federal relief funding. As presented in Table #2, YTD FY2022 revenues exceed budgeted revenues by 43.9% or $27.8M. The increased revenues are driven by the strong passenger traffic and higher daily flight activity in the first five months of the fiscal year. Airport operating expenses are 4.7% or $1.9M below budgeted expenses due primarily to higher than anticipated personnel vacancy rates. Before federal relief funding application, AUS reports net income of $25.9M, which exceeds the seasonalized budget estimate by $29.7M. Federal relief funding YTD through February 2022 totals $20.5M contributing to net income after federal relief of $46.4M, exceeding seasonalized budget estimate by $42.7M or 1149.8%. Attachments: February 2022 - 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 5 Month(s) ended February 28, 2022 0 FY 2022 Budget Budget Seasonalized 5 month(s) Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) Y-T-D to Budget 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 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 10,051,447 19,406,347 29,457,793 14,035,468 1,791,273 4,827,624 4,422,373 2,124,135 857,956 5,706,987 33,765,817 147,241 63,370,851 24,605,664 2,359,782 11,585,013 2,044,333 40,594,792 2,255,095 2,772,502 4,041,237 6,055,554 6,702,242 21,826,630 186,758 2,564,361 745,871 142,870 138,365 147,133 887,267 0 0 4,812,626 16,263,445 27,573,101 43,836,546 20,640,916 2,792,887 7,265,263 5,637,701 2,463,647 1,151,372 7,373,826 47,325,612 25,793 91,187,951 23,873,470 1,913,575 9,476,529 3,410,208 38,673,782 2,255,095 2,772,502 4,041,237 6,055,554 6,702,242 21,826,630 186,758 2,564,361 745,871 142,870 138,365 147,133 887,267 0 0 4,812,626 6,211,998 8,166,754 14,378,753 6,605,448 1,001,613 2,437,639 1,215,329 339,511 293,416 1,666,839 13,559,795 (121,448) 27,817,099 (82.5%) 43.9% 732,194 446,207 2,108,484 (1,365,875) 1,921,010 3.0% 18.9% 18.2% (66.8%) 4.7% 61.8% 42.1% 48.8% 47.1% 55.9% 50.5% 27.5% 16.0% 34.2% 29.2% 40.2% 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% 2.9% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL REQUIREMENTS 172,190,063 67,234,048 65,313,038 1,921,010 Federal Relief Reimbursement (Parking) Federal Relief Reimbursement (Debt Service) TOTAL FEDERAL RELIEF REIMBURSEMENT (3,569,365) (14,611,240) (18,180,605) (1,487,235) (6,088,017) (7,575,252) (2,895,521) (17,621,920) (20,517,441) 1,408,286 11,533,904 12,942,189 94.7% 189.5% 170.8% EXCESS (DEFICIT) OF TOTAL AFTER FEDERAL RELIEF 6,932,771 3,712,056 46,392,354 42,680,298 1149.8% (11,247,834) (3,863,196) 25,874,913 29,738,109 769.8% Note: Columns may not add to totals shown because of rounding CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY22 (Feb 22) vs FY21 (Feb 21) Fiscal YTD - This Year vs. Last Year FY22 (Oct 21 - Feb 22) vs FY21 (Oct 20 - Feb 21) FY22 Feb-22 FY21 Feb-21 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY22 YTD Feb-22 FY21 YTD Feb-21 Fav (Unfav) $ Variance Fav (Unfav) % Variance 2,869,364 5,300,019 8,169,382 1,092,918 3,798,662 4,891,580 3,486,081 500,711 1,183,841 998,564 452,457 153,274 1,374,197 8,149,124 8,098 16,326,604 4,489,062 276,689 1,854,706 572,314 7,192,771 0 450,971 554,500 808,247 1,209,263 1,451,823 4,474,805 37,352 512,872 149,174 28,574 27,673 29,427 177,453 962,525 1,109,673 124,576 927,808 938,822 470,311 158,149 1,167,021 4,896,360 7,378 9,795,318 4,932,085 305,089 1,659,171 283,695 7,180,039 42 451,131 589,844 836,226 1,277,299 474,021 3,628,564 36,312 527,360 156,605 13,844 25,662 25,096 316,130 1,101,008 1,776,445 1,501,357 3,277,802 2,376,407 376,135 256,032 59,741 (17,854) (4,874) 207,177 3,252,764 720 6,531,286 443,023 28,400 (195,535) (288,619) (12,732) 42 160 35,344 27,979 68,037 (977,802) (846,241) (1,040) 14,488 7,431 (14,730) (2,011) (4,331) 138,676 138,483 162.5% 39.5% 67.0% 214.2% 301.9% 27.6% 6.4% (3.8%) (3.1%) 17.8% 66.4% 9.8% 66.7% 9.0% 9.3% (11.8%) (101.7%) (0.2%) 100.0% 0.0% 6.0% 3.3% 5.3% (206.3%) (23.3%) (2.9%) 2.7% 4.7% (106.4%) (7.8%) (17.3%) 43.9% 12.6% 16,263,445 27,573,101 43,836,546 20,640,916 2,792,887 7,265,263 5,637,701 2,463,647 1,151,372 7,373,826 47,325,612 25,793 91,187,951 23,873,470 1,913,575 9,476,529 3,410,208 38,673,782 0 2,255,095 2,772,502 4,041,237 6,055,554 6,702,242 21,826,630 186,758 2,564,361 745,871 142,870 138,365 147,133 887,267 4,812,626 7,040,096 19,366,466 26,406,562 6,083,549 759,776 4,667,643 4,631,678 2,430,648 794,916 5,936,431 25,304,641 74,480 51,785,683 22,547,822 1,681,672 8,393,538 1,531,393 34,154,424 211 2,254,977 2,948,934 4,181,131 6,517,634 2,370,104 18,272,992 181,560 2,636,800 783,025 69,219 128,310 125,480 1,580,648 5,505,042 9,223,349 8,206,635 17,429,984 14,557,367 2,033,111 2,597,620 1,006,023 32,999 356,457 1,437,394 22,020,971 (48,687) 39,402,268 (1,325,648) (231,903) (1,082,991) (1,878,816) (4,519,358) 211 (118) 176,432 139,894 462,080 (4,332,137) (3,553,638) (5,198) 72,439 37,154 (73,650) (10,055) (21,653) 693,380 692,416 131.0% 42.4% 66.0% 239.3% 267.6% 55.7% 21.7% 1.4% 44.8% 24.2% 87.0% (65.4%) 76.1% (5.9%) (13.8%) (12.9%) (122.7%) (13.2%) 100.0% (0.0%) 6.0% 3.3% 7.1% (182.8%) (19.4%) (2.9%) 2.7% 4.7% (106.4%) (7.8%) (17.3%) 43.9% 12.6% 3,696,503 (2,114,294) 5,810,797 274.8% 25,874,913 (6,146,775) 32,021,687 521.0% (396,717) 0 (396,717) 0 (3,629,635) (3,629,635) 396,717 (3,629,635) (3,232,918) N/A (100.0%) (89.1%) (2,895,521) (17,621,920) (20,517,441) 0 (18,276,563) (18,276,563) 2,895,521 (654,642) 2,240,879 N/A (3.6%) 12.3% Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue Non-Airline Revenue Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees Total Non-Airline Revenue Interest Income Total Operating Revenue Operating Requirements Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services Total Operating Expense Debt Service GO Debt Service Fund 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money Total Debt Service Other Requirements Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Total Other Requirements SURPLUS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS Federal Relief Reimbursement (Parking) Federal Relief Reimbursement (Debt Service) Total Federal Relief Total Requirements 12,630,101 11,909,612 (720,489) (6.0%) 65,313,038 57,932,458 (7,380,580) (12.7%) TOTAL SURPLUS (DEFICIT) AFTER Federal Relief 4,093,220 1,515,341 2,577,879 170.1% $ 46,392,354 $ 12,129,788 $ 34,262,566 282.5%  AIRPORT ADVISORY COMMISSION ITEM 3b – STAFF REPORTS AUS Air Service Update Prepared by Jamy Kazanoff, Air Service Development  According to Bank of America, industry recovery keeps heading in the right direction: April 2022 Air Service Snapshot  System net sales are holding steady, down -17.2% vs 2019 for the week ending 3/27 but pricing improved to down -2.2% vs 2019, while total volumes are down -15.4% vs 2019.  Pricing remains strong, with all domestic channels above 2019 levels, while international pricing is just down -6% vs 2019.   We continue to expect solid demand into the peak spring/summer travel period.  Large corporate traffic improves: Kastle office occupancy has plateaued at 40% over the past three weeks and large corporate bookings are only down -31.1% vs 2019. International bookings have been resilient since the onset of the Russia/Ukraine conflict. While initial data suggests that the new BA.2 sub-variant is even more transmissible than Omicron, it appears that symptoms are less severe, and we expect minimal impacts to demand from the new variant. 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 37% above 2019 levels in April, 34% in May and June and 35% in July – 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:  Spirit will start new daily service to MTY on June 22  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 to two daily flights on June 1; new nonstop service to YVR starts 4/week on June 1  American will start AVL, BZN, CZM, MBJ, and SNA in June but discontinue IAD  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 on April 22  KLM started AMS service on March 28, 2022 with 3/week on the 292-seat A330-300  Lufthansa reinstates FRA service on April 8, 2022 with three weekly flights  Southwest added nonstop service to AMA, CHS, CMH, MAF, ONT & PVR in early 2022; new daily service to TUL started April 3; new Saturday only service to CZM starts June 11  Taos Air will serve TSM from June 30 through September 25 with two weekly flights (Sunday/Thursday)  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 the largest carrier at AUS by capacity but American is now much closer in size having gained 9 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. Also notable is that Alaska’s share is up since 2019 as they have nearly doubled frequencies and grown capacity by 58%, not to mention entered three new markets (BOI, LAX & PSP). AIRPORT ADVISORY COMMISSION ITEM 5a – CONSENT AGENDA Authorize negotiation and execution of a cooperative contract with SHI-Government Solutions, Inc. for network management software for a term of three years in an amount not to exceed $315,000.  COUNCIL DATE: 05/05/2022 CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION VENDOR: SHI-GOVERNMENT SOLUTIONS, INC. SUBJECT: Authorize negotiation and execution of a cooperative contract with SHI-Government Solutions, Inc., for network management software, for a term of three years in an amount not to exceed $330,000. MBE/WBE: 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: Aviation Department FISCAL NOTE: Funding in the amount of $34,762 is available in the Fiscal Year 2021-2022 Operating Budget of Aviation Department. Funding for the remaining contract term is contingent upon available funding in future budgets. PURCHASING: Multiple cooperative purchase programs were reviewed for these services. The Purchasing Office 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 CONTACT: Inquiries should be directed to the City Manager’s Agenda Office, at 512-974-2991 or AgendaOffice@austintexas.gov or to Patricia Sustaita, at 512-978-1708 or patricia.sustaita@austintexas.gov. BOARD AND COMMISSION ACTION: April 12, 2022 - To be reviewed by the Airport Advisory Commission ADDITIONAL BACKUP INFORMATION (RCA BODY) The contract will provide integrated end-to-end network management software to continuously monitor the airport’s computer networks allowing for proactive action against identified problems. The software provides real-time network monitoring and offers detailed insights into various areas of the network. The software alerts Information Technology teams to network problems and allows them to easily drill down to the root cause of the network issue and fix it before operations are impacted. It monitors all devices connected to the network. The current contract expired January 22, 2022. Failure to execute this contract will leave the Airport without a comprehensive network monitoring tool and would leave the airport network vulnerable to undetected issues that could result in operational failure and disruption of passenger services, including passenger processing and parking operations. The BuyBoard 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: Government That Works for All Revised 4/2020 1  AIRPORT ADVISORY COMMISSION ITEM 6b – ACTION ITEMS Changes to the AAC bylaws related to Council Resolution 20220217-033. BYLAWS OF THE 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 the Austin City Council concerning the Austin-Bergstrom International Airport (AUS): B) In its recommendations, the 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 and engagement, • Responsibility and accountability, • Innovation and sustainability, • Diversity and inclusion, and • Ethics and integrity. C) The AAC advises and offers help to solve problems and advance the mission and D) The AAC brings public 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 AUS staff and the Austin initiatives of AUS. City Council. F) In all their work, members of the AAC advocate the interests of the airport’s customers, City of Austin citizens public, and the Austin City Council. ARTICLE 3: MEMBERSHIP A) The AAC is composed of eleven members appointed by the Austin City Council. B) A member serves at the pleasure of the Austin City Council. C) Commission members serve for a term of four years beginning May 1st on the year of appointment. 1 D) An individual Commission member may not act in an official capacity except through the action of the AAC. 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, 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 AAC 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 Commission member who seeks to resign from the Commission shall submit a written resignation to the Chair of the AAC, the Staff Liaison, and 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 AAC shall consist of a Chair and a Vice Chair. B) Officers shall be elected annually by a majority vote of the AAC at the first regular meeting after April 1st. In the event a current officer becomes ineligible to serve as an officer, the AAC 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 service 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 reelection to that designated office until the expiration of two years after the last date of the person’s service in that 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 AAC 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. 2  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 Staff 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 the Texas Government Code Chapter 551 (Texas Open Meetings Act). ARTICLE 7: MEETINGS A) The AAC 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 AAC may not conduct a closed meeting without the approval of the City Attorney. D) The AAC shall meet monthly. In November of each year, the AAC shall adopt a schedule of the meetings for the upcoming calendar year, including makeup meeting dates for holidays and cancelled meetings. E) The Chair may call a special meeting. The Chair shall call a special meeting if requested by three or more members. The AAC 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 City Council. F) Six members constitute a quorum. 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, an AAC 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 AAC shall allow citizens members of the public to address the AAC on agenda items and during a period of time set aside for citizen public communications. The Chair may limit a speaker to three minutes. K) The Staff Liaison shall prepare the Commission minutes. The minutes of each AAC meeting must include the vote of each member on each item before the AAC 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 the Texas Local Government Code Chapter 552 (Texas Public Information Act). 3 M) The Chair shall adjourn a meeting not later than 10PM, unless the AAC votes to continue N) Each person and Commission member attending an AAC meeting should observe decorum pursuant to Section 2-1-48 of the City Code. O) A citizen member of the public may not address the AAC at a meeting on an item posted the meeting. as a briefing. ARTICLE 8: COMMITTEES/WORKING GROUPS Committees A) The AAC 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 City 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 AAC 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 AAC at the January Commission meeting. G) Committee meetings must be posted in accordance with the Texas Open Meetings Act. 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 do so. A) The AAC 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 AAC. B) A working group may designate a Chair with the member’s consent, but is not required to 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 Open Meetings Act. 4 ARTICLE 9: PARLIAMENTARY AUTHORITY The rules contained in the current edition of Robert’s Rules of Order shall govern the AAC in all cases to which they are applicable, except when inconsistent with these bylaws or with special rules of procedure which the AAC 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. The bylaws were revised in accordance with City Council Resolution 20220217-033 on March 8, 2022. __________________________________ __________________________________ Ammie Calderon, Staff Liaison Department of Aviation Tracy Thompson, Esq. Airport Chief Officer Administrative and External Affairs Department of Aviation 5