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AIRPORT ADVISORY COMMISSION MEETING MAY 10, 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@flyaustin.com by noon of the day of the meeting for dial-in details. 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@flyaustin.com. Please include the phone number you will be calling from. CURRENT BOARD MEMBERS Eugene Sepulveda, Chair Wendy Price Todd, Vice-Chair Jeremy Hendricks Scott Madole Ernest Saulmon Jonathan Coon Billy Owens AGENDA CALL TO ORDER PUBLIC COMMUNICATION: GENERAL Vicky Sepulveda Chad Ennis Raymond Young 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. 1. APPROVAL OF MINUTES April 12, 2022 meeting. 2. STAFF REPORTS a) March 2022 Financial Results prepared by Rajeev Thomas, Deputy Chief Finance Officer. b) AUS Air Service Update prepared by Jamy Kazanoff, Air Service Development. 3. STAFF BRIEFINGS a) Project Connect Combined Maintenance Facility presented by Tracy Thompson, Chief 1  Administrative and External Affairs Officer, Jocelyn Vokes, Public Involvement Manager, and Marcus Guerrero, Director of Facilities Expansion, Austin Transit Partnership. b) CEO Report on South Terminal Updates and TSA Staffing presented by Jacqueline Yaft, Chief Executive Officer. c) Hilton Hotel Update presented by Tracy Thompson, Chief Administrative and External Affairs Officer and Rajeev Thomas, Deputy Chief Finance Officer. d) Airport Expansion and Development Program (AEDP) RCA Schedule Update presented by Tracy Thompson, Interim Chief Planning and Development Officer. e) Airport System Revenue Bonds, Series 2022 (AMT) Results presented by Rajeev Thomas, Deputy Chief Finance Officer and Dennis Waley, Managing Director, PFM. a) Discussion and possible approval of changes to the AAC bylaws to add the position of 4. CONSENT AGENDA None. 5. ACTION ITEMS Secretary to its officers. 6. OLD BUSINESS None. 7. NEW BUSINESS Council Member. b) Future Agenda Items. a) Review of Commission Recommendations and Actions to discuss with appointing City c) Next regular meeting scheduled for 3:00 PM on June 14, 2022. is committed ADJOURNMENT The City of Austin 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@flyaustin.com. 2  AIRPORT ADVISORY COMMISSION ITEM 1 - APPROVAL OF MINUTES April 12, 2 022 - MEETING  AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, APRIL 12, 2022 The Airport Advisory Commission convened in a regular meeting on Tuesday, April 12, 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 * Billy Owens* (*attended via videoconference) Commissioners Absent: Chad Ennis CITIZENS COMMUNICATIONS: Raymond Young* Wendy Price Todd Vicky Sepulveda Ernest Saulmon a) Jeff Pearce was allotted 3 minutes to address the Commission regarding the South Terminal. b) Alexia Leclerq was allotted 3 minutes to address the Commission regarding Item 4d. c) Yvette Castro was allotted 3 minutes to address the Commission regarding Item 4d. d) Paul DiFiore was allotted 3 minutes to address the Commission regarding Item 4c and 4d. 1. INTRODUCTION OF NEW EXECUTIVE STAFF a) Jill Goodman, Deputy Chief of Innovation and Strategy b) Kevin Russell, Deputy Chief of Talent c) Chair E. Sepulveda invited both new executives to brief the AAC of their departmental plans at a future AAC meeting 1  4. 5. 2. APPROVAL OF MINUTES a) The minutes from the meeting of March 8, 2022 were approved on Commissioner Saulmon’s motion; Commissioner V. Sepulveda seconded. Motion passed on an 8-0-0-2 vote. Commissions Young and Ennis were absent. 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. 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. c) Operation Report on March 28, 2022 situation presented by Ghizlane Badawi, Chief Officer of Operations by videoconference. d) Airport Expansion and Development Program (AEDP) Updates regarding solicitations, environmental assessment status and public comments, and terminal optimization presented by Tracy Thompson, Interim Chief Officer of Planning and Development. e) Updates on the proposed fuel facility presented by Tracy Thompson, Chief Officer of Administration and External Affairs. Chair E. Sepulveda shared a draft action plan from the Mayor to the City Manager and the Department of Aviation. 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. Additional information was provided: The vendor is a certified HUB – SHI Government Solutions Inc. is 100% Minority-Owned, Woman-Owned Business. This is a cooperative contract which is exempt from MBE/WBE requirements/goals the DIR co-op which has its own HUB program and satisfies SMBR’s outreach to minorities criteria A motion to approve the consent agenda was made by Commissioner V. Sepulveda; Secretary 2  Hendricks seconded. Motion passed on a 9-0-0-1 vote. Commissioner Ennis was absent. ACTION ITEMS 6. a) Changes to the AAC bylaws related to Council Resolution 20220217-033 were reviewed. Chair E. Sepulveda moved for an amendment to the AAC Bylaws as follows. Article 4, Paragraph A: The officers of the Commission shall consist of a Chair, a Vice Chair, and a Secretary. Article 5, Paragraph B: In the absence of the Chair, the Vice Chair shall perform all duties of the Chair. In the absence of the Chair and the Vice Chair, the Secretary shall perform all duties of the Chair. Amendments to the Bylaws will not take effect until approval of the City Council. Commissioner Saulmon seconded. Motion passed on a 9-0-0-1 vote. Commissioner Ennis was absent. b) Nomination and election of officers for the term beginning May 1, 2022. Secretary Chair E. Sepulveda nominated Secretary Hendricks. Commissioner V. Sepulveda seconded. Secretary Hendricks appointed as Secretary for the term beginning May 1, 2022 by an 8-0-1- 1 vote. Secretary Hendricks abstained. Commissioner Ennis was absent. (Note: The election of Secretary Hendricks is contingent on City Council approval of the changes to the bylaws detailed in item 6a. The AAC has operated with a Secretary for the last several years without the bylaws establishing the position.) Vice Chair Secretary Hendricks nominated Commissioner Todd. Vice Chair Madole seconded. Commissioner Todd appointed Vice Chair for the term beginning May 1, 2022 by a 7-0-2-1 vote. Commissioners V. Sepulveda and Todd abstained. Commissioner Ennis was absent. Chair Secretary Hendricks nominated Chair E. Sepulveda. Vice Chair Madole seconded. Chair E. Sepulveda appointed Chair for the term beginning May 1, 2022 by a 6-0-3-1 vote. Chair E. Sepulveda and Commissioners V. Sepulveda and Young abstained. Commissioner Ennis was absent. c) Reminder of absentee policy per the AAC Bylaws and City Code. 3  7. 8. OLD BUSINESS City Council actions since the last AAC meeting were reviewed. NEW BUSINESS a) Review of Commission Recommendations and Actions to discuss with appointing City Council Member · Projected fiscal year end revenues are expected to be up 35% both related to volume and price. Projected net income is expected to be 10X what is budgeted. · · Actual year-to-date revenues are up 21% and actual income is up 16% above current budget. · The airport has $982 million in outstanding general bond debt. In addition, $42 million for the Hilton Hotel and $139 million for the CONRAC are outstanding. · The expected spend for next phase A and B of airport development is $2.1 billion. Of that, $1.5 billion to be raised from new debt, including $400 million recently approved by Council, in addition to $291 million from cash reserves, $48 million in grants, and $88 million from previous bond issuances. · The Commission received an update on the jet fuel facility and the Mayor’s document presented to the City Manager. The Commission heard from 3 public speakers in opposition to the proposed facility. · The Commission elected officers for the next term beginning May 1, 2022 to include Chair E. Sepulveda, Vice Chair Todd, and Secretary Hendricks. · The South Terminal’s fifth anniversary of opening is tomorrow, April 13, 2022. b) Future Agenda Items c) Next scheduled meeting May 10, 2022 at 3:00 p.m. ADJOURNMENT Chair E. Sepulveda adjourned the meeting at 5:03 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. 4 For more information on the Airport Advisory Commission, please contact Executive Liaison Tracy Thompson at tracy.thompson@flyaustin.com or Staff Liaisons Steve Khanoyan at (312) 723-2619 or stephen.khanoyan@flyaustin.com and Ammie Calderon at (512) 530-6605 or ammie.calderon@flyaustin.com. 5  AIRPORT ADVISORY COMMISSION ITEM 2a – STAFF REPORTS March 2022 Financial Results Prepared by Rajeev Thomas, Deputy Chief Finance Officer  MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: May 10, 2022 SUBJECT: Austin-Bergstrom International Airport (AUS) Update March 2022 Financial Results Total passenger traffic increased 147.8% in March 2022 compared to March 2021 (which was impacted by the decline in travel demand due to the COVID-19 pandemic). March 2022 was the busiest month in AUS’ history with 1,822,198 total passengers, exceeding the previous record set in July 2019 by 10.9% or 179,182 passengers. The enplaned passenger number of 905,412 was a 24.9% increase over March 2019. The increased passenger traffic is driven by multiple factors including the following: • Resurgence in leisure travel due to the decline in the Omicron variant and improvement in business travel. • Increase in daily average departures from 225 YTD through February 2022 to 254 in March 2022. This is attributable to the launch of expanded non-stop flight schedules from multiple airlines, specifically American Airlines and Southwest Airlines. • Large events occurring in March 2022 including SXSW, EchoPark Automotive Grand Prix (NASCAR event at COTA), WGC-Dell Match Play golf tournament, and Texas Relays drove additional passenger volume. Table #1 Enplanements Landing Weights Cargo Tonnage FY 2022 March FY 2021 March Variance Fav (Unfav) FY 2022 YTD FY 2021 YTD Variance YTD Fav (Unfav) 905,412 362,085 150.1% 4,409,361 1,507,785 1,086,411,536 547,982,160 98.3% 5,863,740,083 2,530,624,533 13,973 9,382 48.9% 74,816 60,500 192.4% 131.7% 23.7% Operating Revenue $21,419,703 $12,148,680 $9,271,023 $112,607,654 $63,934,363 $48,673,291 Airport OPEX $7,908,713 $6,255,617 ($1,653,096) $46,582,495 $40,410,041 ($6,172,454) Total Requirements $13,030,226 $10,985,189 ($2,045,036) $78,343,263 $68,917,647 ($9,425,616) Net Income Before Federal Relief $8,389,478 $1,163,491 $7,225,987 $34,264,390 ($4,983,284) $39,247,674 Federal Relief Reimbursement $7,404,619 $3,629,535 $3,775,084 $27,922,061 $21,906,097 $6,015,963 Net Income After Federal Relief $15,794,097 $4,793,026 $11,001,071 $62,186,451 $16,922,814 $45,263,637 Table #1 illustrates March 2022’s enplanements totaled 905,412 which is 150.1% higher than March 2021, serving an additional 543,327 enplaned passengers. Landing weights totaled 1,086 million pounds in March 2022 representing an increase of 98.3% compared to March 2021. Cargo volume totaled 13,973 tons in March 2022 representing an increase of 48.9% compared to March 2021. Monthly operating revenues increased 76.3% or $9.3M compared to March 2021. Totaling $21.4M, March 2022 operating revenues reflect the impact of the record- breaking passenger traffic in the month. AUS reported $8.4M of net income (before federal relief funding) in March 2022 compared to net income of $1.2M in March 2021. Year-to-Date Fiscal Year 2022 Financial Results Through the sixth 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 $112.6M compared to $63.9M in FY2021, a 76.1% increase. Airport Operating Expenses totaled $46.6M YTD in FY2022 compared to $40.4M in FY2021, a 15.3% increase. Net income before federal relief funding totals $34.3M YTD in FY2022 compared to a deficit of ($5.0M) in FY2021, an increase of $39.2M or 787.6%. Table #2 Approved Budget - Seasonalized FY 2022 FY 2022 Budget vs. YTD Variance Budget vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) Operating Revenue $78,866,774 $112,607,654 $33,740,880 Airport OPEX $47,989,533 $46,582,495 $1,407,039 Total Requirements $80,066,119 $78,343,263 $1,722,856 Net Income for Debt Service $25,102,089 $60,565,825 ($35,463,736) Net Income Before Federal Relief ($1,199,346) $34,264,390 $35,463,736 Federal Relief Reimbursement $9,090,303 $27,922,061 $18,831,758 Net Income After Federal Relief $7,890,957 $62,186,451 $54,295,494 42.8% 2.9% 2.2% (141.3%) 2956.9% 207.2% 688.1% Through March 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 42.8% or $33.7M. The increased revenues are driven by the strong passenger traffic and higher daily flight activity in the first six months of the fiscal year. Airport operating expenses are 2.9% or $1.4M below budgeted expenses due primarily to higher than anticipated personnel vacancy rates. Before federal relief funding application, AUS reports net income of $34.3M, which exceeds the seasonalized budget estimate by $35.5M. Federal relief funding YTD through March 2022 totals $27.9M contributing to net income after federal relief of $62.2M, exceeding seasonalized budget estimate by $54.3M or 688.1%. Attachments: March 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 6 Month(s) ended March 31, 2022 1 FY 2022 Amended Budget Budget Seasonalized 6 month(s) Y-T-D to Budget Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) 26,030,400 48,629,418 74,659,818 12,210,832 23,397,720 35,608,552 19,964,887 33,656,230 53,621,116 7,754,054 10,258,510 18,012,565 38,325,261 4,983,334 11,586,297 10,613,694 5,097,925 2,059,095 15,532,040 88,197,646 19,229,493 2,258,629 5,793,149 5,306,847 2,548,963 1,029,548 6,914,904 43,081,532 25,407,884 3,621,535 9,188,912 7,072,164 3,061,154 1,659,833 8,921,678 58,933,160 6,178,391 1,362,906 3,395,763 1,765,317 512,192 630,285 2,006,774 15,851,628 353,379 163,210,843 176,690 78,866,774 53,378 112,607,654 (123,312) 33,740,880 (69.8%) 42.8% 28,390,473 2,291,864 11,830,274 4,069,884 46,582,495 690,355 494,882 1,871,232 (1,649,430) 1,407,039 2.4% 17.8% 13.7% (68.1%) 2.9% 62,598,260 6,445,332 30,703,982 6,135,897 105,883,471 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 29,080,829 2,786,745 13,701,506 2,420,453 47,989,533 2,706,066 3,327,003 4,849,484 7,264,817 8,154,065 26,301,435 224,110 3,077,234 895,045 171,444 166,039 176,560 1,064,721 0 0 5,775,151 2,706,066 3,327,003 4,849,484 7,264,817 8,154,065 26,301,435 196,095 3,077,234 783,163 171,444 145,279 154,490 931,630 0 0 5,459,334 0 0 (0) 0 0 (0) 28,015 0 111,883 0 20,759 22,070 133,090 0 0 315,817 63.5% 43.8% 50.6% 32.1% 60.3% 58.6% 33.3% 20.1% 61.2% 29.0% 36.8% 0.0% 0.0% (0.0%) 0.0% 0.0% (0.0%) 12.5% 0.0% 12.5% 0.0% 12.5% 12.5% 12.5% N/A N/A 5.5% REVENUE AIRLINE REVENUE Landing Fees Terminal Rental & Other Fees TOTAL AIRLINE REVENUE NON-AIRLINE REVENUE Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees TOTAL NON-AIRLINE REVENUE Interest Income TOTAL REVENUE OPERATING REQUIREMENTS Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money TOTAL Net Debt Service OTHER REQUIREMENTS Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Compensation Adjustment Trf to Subordinate Obligation TOTAL OTHER REQUIREMENTS EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS TOTAL OPERATING EXPENSES Debt Service TOTAL REQUIREMENTS 174,458,677 80,066,119 78,343,263 1,722,856 2.2% Federal Relief Reimbursement (Parking) Federal Relief Reimbursement (Debt Service) TOTAL FEDERAL RELIEF REIMBURSEMENT (3,569,365) (14,611,240) (18,180,605) (1,784,683) (7,305,620) (9,090,303) (3,358,632) (24,563,429) (27,922,061) 1,573,949 17,257,809 18,831,758 88.2% 236.2% 207.2% EXCESS (DEFICIT) OF TOTAL AFTER FEDERAL RELIEF 6,932,771 7,890,957 62,186,451 54,295,494 688.1% (11,247,834) (1,199,346) 34,264,390 35,463,736 2956.9% 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 (Mar 22) vs FY21 (Mar 21) Fiscal YTD - This Year vs. Last Year FY22 (Oct 21 - Mar 22) vs FY21 (Oct 20 - Mar 21) FY22 Mar-22 FY21 Mar-21 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY21 YTD Mar-21 Fav (Unfav) $ Variance Fav (Unfav) % Variance 3,701,442 6,083,129 9,784,570 1,963,356 4,262,025 6,225,380 4,766,968 828,648 1,923,649 1,434,462 597,508 508,461 1,547,853 11,607,548 1,811,048 240,742 1,019,373 926,108 498,753 158,149 1,261,429 5,915,602 27,585 21,419,703 7,698 12,148,680 4,517,003 378,289 2,353,745 659,675 7,908,713 0 450,971 554,500 808,247 1,209,263 1,451,823 4,474,805 9,337 512,872 37,292 28,574 6,914 7,357 44,363 646,708 3,796,190 285,815 1,866,131 307,481 6,255,617 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 1,738,086 1,821,104 3,559,190 2,955,920 587,906 904,276 508,354 98,755 350,312 286,423 5,691,946 19,887 9,271,023 (720,813) (92,474) (487,614) (352,195) (1,653,096) 42 160 35,344 27,979 68,037 (977,802) (846,241) 26,975 14,488 119,313 (14,730) 18,748 17,739 271,766 454,300 88.5% 42.7% 57.2% 163.2% 244.2% 88.7% 54.9% 19.8% 221.5% 22.7% 96.2% 258.4% 76.3% (19.0%) (32.4%) (26.1%) (114.5%) (26.4%) 100.0% 0.0% 6.0% 3.3% 5.3% (206.3%) (23.3%) 74.3% 2.7% 76.2% (106.4%) 73.1% 70.7% 86.0% 41.3% FY22 YTD Mar-22 19,964,887 33,656,230 53,621,116 25,407,884 3,621,535 9,188,912 7,072,164 3,061,154 1,659,833 8,921,678 58,933,160 53,378 112,607,654 28,390,473 2,291,864 11,830,274 4,069,884 46,582,495 0 2,706,066 3,327,003 4,849,484 7,264,817 8,154,065 26,301,435 196,095 3,077,234 783,163 171,444 145,279 154,490 931,630 5,459,334 9,003,451 23,628,491 32,631,942 7,894,597 1,000,518 5,687,016 5,557,787 2,929,401 953,064 7,197,861 31,220,243 82,178 63,934,363 26,344,012 1,967,487 10,259,669 1,838,873 40,410,041 254 2,706,108 3,538,778 5,017,358 7,794,934 2,844,125 21,901,556 217,872 3,164,160 939,630 83,063 153,972 150,576 1,896,777 6,606,050 10,961,435 10,027,739 20,989,174 17,513,287 2,621,017 3,501,896 1,514,377 131,754 706,769 1,723,818 27,712,917 (28,800) 48,673,291 (2,046,462) (324,377) (1,570,605) (2,231,010) (6,172,454) 254 42 211,776 167,873 530,116 (5,309,940) (4,399,879) 21,777 86,927 156,468 (88,381) 8,693 (3,914) 965,147 1,146,716 121.7% 42.4% 64.3% 221.8% 262.0% 61.6% 27.2% 4.5% 74.2% 23.9% 88.8% (35.0%) 76.1% (7.8%) (16.5%) (15.3%) (121.3%) (15.3%) 100.0% 0.0% 6.0% 3.3% 6.8% (186.7%) (20.1%) 10.0% 2.7% 16.7% (106.4%) 5.6% (2.6%) 50.9% 17.4% 8,389,478 1,163,491 7,225,987 621.1% 34,264,390 (4,983,284) 39,247,674 787.6% (463,111) (6,941,508) (7,404,619) 0 (3,629,535) (3,629,535) 463,111 3,311,973 3,775,084 N/A 91.3% 104.0% (3,358,632) (24,563,429) (27,922,061) 0 (21,906,097) (21,906,097) 3,358,632 2,657,331 6,015,963 N/A 12.1% 27.5% 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 13,030,226 10,985,189 (2,045,036) (18.6%) 78,343,263 68,917,647 (9,425,616) (13.7%) TOTAL SURPLUS (DEFICIT) AFTER FEDERAL RELIEF 15,794,097 4,793,026 11,001,071 229.5% $ 62,186,451 $ 16,922,814 $ 45,263,637 267.5%  AIRPORT ADVISORY COMMISSION ITEM 2b – STAFF REPORTS AUS Air Service Update Prepared by Jamy Kazanoff, Air Service Development  May 2022 Air Service Snapshot • Airlines are reporting earnings with a consistent theme: demand and pricing environment remaining very strong. • System pricing continues to remain strong and is now +3.0% vs 2019 as the domestic channel pricing improved to • up +8.6% vs 2019 International volumes closing in on domestic volumes: in the latest data, international volumes system wide improved to -14.8% vs 2019 while pricing was approximately flat at down -1% vs 2019. International bookings have steadily improved this year and are nearly in line with domestic bookings. 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. Based on currently filed schedules, capacity will be 32% above 2019 levels in May, 29% in June and July and 34% in August – 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: • Spirit will start new daily service to MTY on October 5 instead of June 22; LAX suspended between June 3 – August 10 as part of systemwide capacity reduction • Virgin Atlantic will start new nonstop service to London (Heathrow) 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; added IAD, SAN & SRQ in April • British Airways increased 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 • • Southwest added new daily service to TUL on 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 14 (but will not serve MSP in 2022) • WestJet has suspended its return until Summer 2023 Lufthansa reinstated FRA service on April 8, 2022 with three weekly flights 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 capacity, 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 72%, not to mention entered three new markets (BOI, LAX & PSP). Allegiant’s share is also up as the base opened, and they have added 13 new destinations and increased capacity by 77%.  AIRPORT ADVISORY COMMISSION ITEM 5a – ACTION ITEMS Redlined changes to AAC bylaws  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 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, and a Secretary. 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. 2  B) In the absence of the Chair, the Vice-Chair shall perform all duties of the Chair. In the absence of the Chair and Vice Chair, the Secretary shall perform all duties of the Chair. ARTICLE 6: AGENDAS A) Two or more Commission members may place an item on the agenda by oral or written request to the staff liaison at least five days before the meeting. After first consulting with and receiving input from the Staff Liaison, the Chair shall approve each final meeting agenda. B) The 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 members of the public to address the AAC on agenda items and during a period of time set aside for 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 3  documents are public records under the Texas Local Government Code Chapter 552 (Texas Public Information Act). 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 member of the public may not address the AAC at a meeting on an item posted as a the meeting. 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 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 member’s consent. 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