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REGULAR MEETING o f th e A I R PO R T A D V I S O R Y C O M M I S S I O N ( A A C ) SEPTEMBER 13, 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 Ammie Calderon at ammie.calderon@flyaustin.com by Noon of the day of the meeting for dial-in details. Public comment will be allowed in-person or remotely via telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than Noon the day before the meeting is required for remote participation by telephone. To register to speak remotely, email Ammie Calderon at ammie.calderon@flyaustin.com. CURRENT BOARD MEMBERS Eugene Sepulveda, Chair Wendy Price Todd, Vice-Chair Jeremy Hendricks, Secretary Scott Madole CALL TO ORDER Ernest Saulmon Jonathan Coon Billy Owens Bakari Brock Vicky Sepulveda Chad Ennis Raymond Young AGENDA PUBLIC COMMUNICATION: GENERAL 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. INTRODUCTION OF SOMER SHINDLER, AIRPORT CHIEF DEVELOPMENT OFFICER APPROVAL OF MINUTES 1. Approve the minutes of the AAC regular meeting on August 9, 2022. 1 1 STAFF BRIEFINGS 2. CEO verbal briefing related to the AUS response for the terminal evacuations on August 10, 2022 and the power outage at the airport on September 7, 2022 presented by Jacqueline Yaft, Chief Executive Officer. July 2022 Financial Results presented by Rajeev Thomas, Deputy Chief Finance Officer. 3. 4. 5. Air Service Update presented by Jamy Kazanoff, Air Service Development. Fiscal Year 2023 Annual Budget Results presented by Rajeev Thomas, Deputy Chief Finance Officer. Journey with AUS - Capital Projects Update, Principal Architect Update, and Future Solicitations Update presented by Lyn Estabrook, Division Manager Planning and Development and Somer Shindler, Chief Development Officer. Project Connect Update introduction by Tracy Thompson, Chief Officer Administrative & External Affairs, presented by Peter Mullan, Chief of Architecture and Urban Design, Austin Transit Partnership and Annick Beaudet, Mobility Officer, Project Connect Office. CONSENT AGENDA 8. Authorize negotiation and execution of a cooperative contract with Presidio Networked Solutions Inc. d/b/a Presidio Networked Solutions Group LLC to provide web application firewall products and support services, for a term of three years for a total contract amount not to exceed $400,000. Scheduled for approval by the City Council at the September 29, 2022 meeting. (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. This is a contract for maintenance of a specific product which is only supported by the vendor/manufacturer. Additionally, this product was a Texas Department of Information Resources cooperative purchase which has its own Historically Underutilized Business program and satisfies SMBR criteria. For the goods and services required for this procurement, there were insufficient or no subcontracting opportunities; therefore, no subcontracting goals were established.) DISCUSSION AND ACTION ITEMS meeting. 9. Reviewing actions of City Council action on items 23, 28, and 30 at the September 1, 2022  Authorize negotiation and execution of a contract with EMS Bruel & Kjaer Inc. d/b/a Envirosuite, Inc. to provide maintenance and support of the noise and operations 2 6. 7. 2monitoring system for a term of five years in an amount not to exceed $520,000. Approved on Consent. Authorize negotiation and execution of a cooperative contract with DLT Solutions, LLC for enterprise applications services monitoring software for a term of three years in an amount not to exceed $282,100. Approved on Consent. Authorize negotiation and execution of a Construction Manager at Risk Agreement with Austin Bridge & Road, LP for preconstruction and construction services for the AEDP Airfield Infrastructure project in an amount not to exceed $165,000,000. Approved on Consent. 10. Discuss options related to a new location and dates for Airport Advisory Commission meetings to begin in January 2023, and authorize Aviation staff to coordinate the implementation of a new location and new dates for Airport Advisory Commission Meetings. FUTURE AGENDA ITEMS The next regular meeting of the AAC is scheduled for October 11, 2022 at 3:00 PM. NEXT REGULAR MEETING 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@flyaustin.com.   3 3AIRPORT ADVISORY COMMISSION ITEM 1 - APPROVAL OF MINUTES August 9, 2 022 Regular Meeting     4 1. 2. AIRPORT ADVISORY COMMISSION (AAC) REGULAR MEETING MINUTES AUGUST 9, 2022 The Airport Advisory Commission convened in a regular meeting on August 9, 2022 at 2716 Spirit of Texas Drive in Austin, Texas. Chair E. Sepulveda called the regular meeting to order at 3:01 p.m. Commissioners in Attendance: Eugene Sepulveda, Chair Wendy Price Todd, Vice Chair Chad Ennis Scott Madole Commissioners in Attendance Remotely: Bakari Brock Commissioners Absent: Jeremy Hendricks, Secretary Billy Owens Ernest Saulmon Vicky Sepulveda Raymond Young Jonathan Coon PUBLIC COMMUNICATION: GENERAL Laura Ludwig was allotted 3 minutes to address the AAC regarding curbside ADA access. APPROVAL OF MINUTES Approve the revised minutes of the AAC regular meeting on June 14, 2022. The revised minutes from the meeting of June 14, 2022 were approved on Commissioner Young’s motion and Commissioner Ennis’ second on a 10-0-0-1 vote. Secretary Hendricks was absent. Approve the minutes of the AAC regular meeting on July 12, 2022. The minutes from the meeting of July 12, 2022 were approved on Commissioner Brock’s motion and Commissioner Coon’s second on a 10-0-0-1 vote. Secretary Hendricks was absent. 1 5 3. 5. 6. 7. 8. 9. ACTION ITEMS Discussion and possible approval of an AAC Resolution recognizing Stephen Khanoyan’s service to the Commission and the Department of Aviation The AAC Resolution was approved on a 10-0-0-1 vote. Secretary Hendricks was absent. STAFF BRIEFINGS 4. Identification of Prospective Action Items Regarding the AUS Fuel Facility Reflected in the Memos to Mayor and Council presented by Tracy Thompson, Chief Administration & External Affairs Officer. June 2022 Financial Results presented by Rajeev Thomas, Deputy Chief Finance Officer. Air Service Update presented by Jamy Kazanoff, Air Service Development. The AUS Way: Committed, Focused, Together presented by Michele Lau, Program Manager, Performance Management. HNTB Introduction of the Jamboard Activity introduced by Tracy Thompson, Interim Chief Development Officer and presented by Julie Weinberg, HNTB CONSENT AGENDA Item 11 was pulled for discussion by Chair E. Sepulveda. The consent agenda was approved on Commissioner Madole’s motion and Commissioner Young’s second on a 10-0-0-1 vote. Secretary Hendricks was absent. Authorize negotiation and execution of a contract with EMS Bruel & Kjaer Inc. d/b/a Envirosuite, Inc. to provide maintenance and support of the noise and operations monitoring system for a term of five years in an amount not to exceed $520,000. 10. Authorize negotiation and execution of a cooperative contract with DLT Solutions, LLC for enterprise applications services monitoring software for a term of three years in an amount not to exceed $282,100. 11. Authorize negotiation and execution of a Construction Manager at Risk Agreement with Austin Bridge & Road, LP for preconstruction and construction services for the AEDP Airfield Infrastructure project in an amount not to exceed $165,000,000. Item 11 was approved on Commissioner Madole’s motion and Commissioner Young’s second on a 10-0-0-1 vote. Secretary Hendricks was absent. 2 6REVIEW OF CITY COUNCIL ACTIONS Actions taken by the City Council on AAC items were reviewed. DISCUSSION ITEMS 12. Review of topics to discuss with appointing City Council Member. Commissioners were reminded to routinely speak to their appointing City Council Member. a. The AAC received a public comment regarding difficulties with mobility and accessibility at AUS particularly with the curbside drop off and pick up areas. b. 17% of passengers at AUS are connecting to another destination; nearly double the percentage from pre-Covid and continues to rise. c. AUS management has prioritized employee culture and development through The AUS Way program. d. The AAC recommended for approval a $165 million investment in the airfield preconstruction and construction services related to the AEDP. The AAC requests an update on the SMBR aspects of the AEDP at a future meeting. The AAC additionally requests an update on the fuel facility and related agenda items. FUTURE AGENDA ITEMS NEXT REGULAR MEETING The next regular meeting of the AAC is scheduled for September 13, 2022 at 3:00 p.m. Chair E. Sepulveda adjourned the meeting at 5:06 p.m. without objection. 3 7    AIRPORT ADVISORY COMMISSION ITEM 2 – STAFF BRIEFINGS CEO verbal briefing presented by Jacqueline Yaft, Chief Executive Officer 8Mayor, Mayor Pro Tem, Council Members and Council staff – On behalf of Austin Energy and the Department of Aviation, please find a summary of the recent power outage at the Austin-Bergstrom International Airport (AUS). The electric service feeding AUS is operating and back to normal configuration with redundancy. On Wednesday, Sept. 7 at 4:33 a.m., the Austin-Bergstrom International Airport campus lost power halting all functions across the entire airport. The Federal Aviation Administration (FAA) issued a ground stop, an air traffic control order that halts the flow of arriving and departing aircraft for an airport, at approximately 5:30 a.m. To ensure the safety of passengers and airport employees, roadways to the airport were closed. Austin Police Department and Department of Aviation employees managed access points to the airport since passengers could not be processed and flights could not take off. Austin Energy’s Control Center immediately identified that there was an outage and dispatched technicians to the site. Austin Energy personnel arrived and began their investigation. Circuits feeding the airport are underground, which required more time to identify the problem. Austin Energy technicians determined malfunctioning underground equipment caused a fault, which required a breaker to trip at the substation, cutting off electricity to the airport. When faults occur, circuit breakers operate to safely clear them. The Austin-Bergstrom International Airport is served by two separate electrical feeders (circuits) for redundancy. At the time of the event, one of the feeders was out of service for regular maintenance and upgrades. Therefore, the redundancy that would normally occur was not available to keep the airport fully energized. However, another back-up circuit was on standby. AUS does have backup generators and used them during this event as intended to power critical functions including auxiliary lighting for safety, fire detection and fire alarms, and the PA system. After identifying the problem, Austin Energy crews isolated the equipment and began rerouting power from the back-up circuit. By approximately 7:30 a.m., Austin Energy restored power to the airport terminal. Crews remained on site to replace the faulty equipment and to restore power to the rest of the airport. **** 1 9After power was restored to the terminal, airport employees worked to restart all airport systems needed to process customers, including the Baggage Handling System, parking, airline ticket and check- in systems and TSA equipment. Once airport systems were restarted, the FAA lifted the ground stop for the airport and flight activity resumed. Currently, all substation maintenance work has been completed, and the electric service feeding AUS is back to normal configuration with redundancy. Austin Energy and the Department of Aviation are in discussions to examine what opportunities exist to enhance operations and resiliency of the system at the airport, taking into account all future airport expansion plans to serve AUS customers in the most reliable manner possible. --Communications & Public Information Office 2 10    AIRPORT ADVISORY COMMISSION ITEM 3 – STAFF BRIEFINGS July 2022 Financials presented by Rajeev Thomas, Deputy Finance Officer 11TO: Airport Advisory Commissioners MEMORANDUM FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: September 13, 2022 SUBJECT: Austin-Bergstrom International Airport (AUS) Update July 2022 Financial Results Total passenger traffic increased 27.7% in July 2022 compared to July 2021 (which was in the midst of the air travel industry recovery from the impacts of the COVID- 19 pandemic) and 19.8% compared to July 2019 (see below chart). Passenger enplanements totaled 984,932 in July 2022, an increase of 19.9% or 163,792 passengers compared to July 2019. Average daily departures have increased from 203 in July 2019 to 260 in July 2022, an increase of 57 daily departures or 28.1%. Table #1 FY 2022 July FY 2021 July Variance Fav (Unfav) FY 2022 YTD FY 2021 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage 984,932 774,293 27.2% 8,378,131 3,973,303 1,149,069,534 867,075,858 32.5% 10,373,005,548 5,464,390,048 12,684 8,946 41.8% 128,064 96,855 110.9% 89.8% 32.2% Operating Revenue $23,188,928 $12,852,738 $10,336,190 $203,301,882 $119,753,945 $83,547,937 Airport OPEX $8,589,150 $6,909,877 ($1,679,273) $79,979,344 $68,192,755 ($11,786,589) Total Requirements $14,100,831 $13,342,475 ($758,356) $133,879,922 $118,249,491 ($15,630,431) Net Income Before Federal Relief $9,088,097 ($489,737) $9,577,834 $69,421,961 $1,504,455 $67,917,506 Federal Relief Reimbursement $1,666,493 ($2,598,335) $4,264,827 $35,091,124 $27,129,523 $7,961,601 Net Income After Federal Relief $10,754,590 ($3,088,072) $13,842,662 $104,513,085 $28,633,978 $75,879,107 12Table #1 illustrates July 2022’s enplanements totaled 984,932 which is 27.2% higher than July 2021, serving an additional 210,639 enplaned passengers. Landing weights totaled 1,149 million pounds in July 2022 representing an increase of 41.8% compared to July 2021. Cargo volume totaled 12,684 tons in July 2022 representing an increase of 41.8% compared to July 2021. Monthly operating revenues increased 80.4% or $10.3M compared to July 2021. Totaling $23.2M, July 2022 operating revenues reflect the impact of the strong passenger traffic in the month. July 2022 operating revenue is composed of 46% airline revenue and 54% non-airline revenue. AUS reported $9.1M of net income (before federal relief funding) in July 2022 compared to a net loss of $0.5M in July 2021. Year-to-Date Fiscal Year 2022 Financial Results Through the tenth 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 $203.3M compared to $119.8M in FY2021, a 69.8% increase. Airport Operating Expenses totaled $80.0M YTD in FY2022 compared to $68.2M in FY2021, a 17.3% increase. Net income before federal relief funding totals $69.4M YTD in FY2022 compared to $1.5M in FY2021, an increase of $67.9M. Table #2 Approved Budget - Seasonalized CYE - Seasonalized FY 2022 FY 2022 FY 2022 Budget vs. YTD Variance Budget vs. YTD Variance CYE vs. YTD Variance CYE vs. YTD Variance YTD $ Fav (Unfav) % Fav (Unfav) $ Fav (Unfav) $ Fav (Unfav) Operating Revenue $134,122,892 $178,590,361 $203,301,882 $69,178,990 51.6% $24,711,522 Airport OPEX $81,977,939 $84,382,593 $79,979,344 $1,998,595 Total Requirements $135,834,314 $138,262,798 $133,879,922 $1,954,392 2.4% 1.4% $4,403,249 $4,382,876 Net Income for Debt Service $42,519,702 $84,582,516 $113,676,914 ($71,157,212) (167.4%) ($29,094,398) Net Income Before Federal Relief ($1,711,421) $40,327,563 $69,421,961 $71,133,382 4156.4% $29,094,398 Federal Relief Reimbursement $15,150,504 $30,452,733 $35,091,124 $19,940,620 131.6% $4,638,391 Net Income After Federal Relief $13,439,083 $70,780,296 $104,513,085 $91,074,002 677.7% $33,732,788 13.8% 5.2% 3.2% (34.4%) (72.1%) 15.2% 47.7% Through July 2022 AUS has delivered favorable YTD financial performance compared to FY2022 budget and current year estimate (CYE) 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 51.6% or $69.2M and exceeded CYE by 13.8% or $24.7M. The increased revenues are driven by the strong passenger traffic and higher daily flight activity through the tenth month of the fiscal year. Airport operating expenses are 2.4% or $2.0M below budgeted expenses and 5.2% or $4.4M below CYE expenses due primarily to higher than anticipated personnel vacancy rates. Before federal relief funding application, AUS reports net income of $69.4M, which exceeds the seasonalized budget estimate by $71.1M and CYE by $29.1M. Attachments: July 2022 - AAC Financial Report 13 AIRPORT ADVISORY COMMISSION ITEM 4 – STAFF BRIEFINGS Fiscal Year 2023 Annual Budget Results presented by Rajeev Thomas, Deputy Chief Finance Officer     14City of Austin, Aviation Department 2022-23 BUDGET September 13, 2022 15FY23 – Enplanements 1 Full year of normal International and Business Travel resuming in FY23 Enplanement forecast is between LeighFisher high scenario (11.25M) and Ricondo Scenario 1 (low scenario 11.9M) 16FY23 – Enplanements Growth in FY23 related to normalized full year of International and Business travel 2 17FY23 – Revenues Amended AIRLINE REVENUE Landing Fees Terminal Rental & Other Fees TOTAL AIRLINE REVENUE yoy growth % NON-AIRLINE REVENUE Parking Ground Transportation Rental Cars Food, Bev & Retail Advertising Other Rentals and Fees TOTAL NON-AIRLINE REVENUE yoy growth % Interest Income TOTAL INTEREST INCOME & BOND PROCEEDS Budget Current Year Estimate Proposed 2021-2022 2021-2022 2022-2023 26,030,400 48,629,417 74,659,817 38,325,261 4,983,334 11,586,297 15,711,619 2,059,095 15,532,040 88,197,646 353,379 353,379 37,444,308 62,477,517 99,921,825 32.21% 47,662,161 63,961,021 111,623,182 11.71% 54,063,848 7,256,248 16,719,839 18,817,238 2,679,243 18,390,238 117,926,654 57.82% 61,903 61,903 58,014,902 8,272,870 17,549,148 19,758,100 2,813,205 18,978,916 125,387,141 6.33% 115,000 115,000 TOTAL REVENUE yoy growth % 163,210,842 217,910,382 44.87% 237,125,323 8.82% Revenue per enplanement $23.86 $21.75 $20.64 3 Currently averaging approximately 260 daily departures versus 187 in 2019. Landed Weights June YTD are up 28% versus FY19 More enplanements equates to more non-airline revenues. FY19 revenue per enplanement = $20.88 18FY23 – Headcount FY22 Budgeted FTE FY22 Budget Amendment - additions Ending FY22 Amended Budgeted FTE's FY23 Budgeted FTE FTE's in FY23 Budget Active FTE's based on banner - 08/27/22 Vacancies as of 08/27/22 FTE vacancies budgeted - 186 first half; 126 second half 4 FTE 549 80 629 55 684 389 240 19FY23 – Airport OPEX without City Allocations Airport Expenses 2018-2019 2020-2021 2021-2022 2022-2023 Actual Actual Current Year Estimate Budget OPERATING REQUIREMENTS Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services Grant Reimbursement - Federal TOTAL OPERATING EXPENSES yoy growth % yoy growth % 58,850,160 4,942,010 24,102,842 15,313,931 0 103,208,942 56,414,722 4,798,319 24,990,636 4,949,674 (2,742,648) 88,410,703 63,221,412 8,182,246 29,451,911 9,426,099 (6,897,750) 103,383,918 75,024,798 8,786,590 42,459,034 12,520,968 (9,228,308) 129,563,082 -9.16% 16.94% 25.32% TOTAL OPERATING EXPENSES w/o Federal Relief 103,208,942 91,153,351 110,281,668 138,791,390 -8.95% 20.98% 25.85% Includes compensation adjustment to $20/hr. Significant increases in Airport Operating Expenses in FY22 and FY23. • Higher expenses related to passenger growth • Contracts and Commodities increasing from depressed levels due to pandemic lows • Personnel expenses increasing due to higher headcount, overtime, temps and promotions • 4% City wage increase cost = $1.47M after vacancy savings • Utilities costs are increasing by $2M • EMS - $460k 5 20FY23 – Expense Increase Personnel Full impact of 80 Budget Amendment FTE’s added in FY22 = $7.6M annually. Gainsharing was not budgeted in FY22. Employee retention efforts at 10% wage increase = $2.7M excludes referrals and bonuses. Only for employees after 10/01/2021 hire date. Referral and signing bonuses are budgeted at $275k for FY23 APD & ARFF expenses are up $1.55M. New EMS expense of $0.46M Parking Expenses going up as more shuttle drivers are expected on board and credit cards fees are up $900k Bradford Logistics expenses are reflected at the higher rate for a full year. FY22 BL budget is low due to Amendment 3 executed in August 2021. Utilities are up due to higher rates and more buildings on line in FY23. CMF and IT. $2M increase. Legal fees budgeted up $2M. Consulting fees up $1.7M. 6 Maintenance costs up $1.7M. Related to hardware, software and terminal maintenance. Commodities up due to inflation and increases in usage, $1.16M Wage Increase partial offset by vacancy savings Seasonal Employees (interns) Overtime Temporary Employees Gainsharing Retention - 10% increase Benefits associated with budgeted FTE's Contractuals Parking Expenses Bradford Logistics & Ecolab Legal Utilities Consulting General Liability South Terminal APD & ARFF EMS CTM, CTECC and Admin Support Training Advertising/Publication Maintenance Misc Commodities Non - CIP Capital Total Budget FY23 $1.85 $0.39 $0.61 $1.70 $2.20 $2.70 $4.40 $13.85 $5.30 $0.84 $2.00 $2.01 $1.70 $0.36 $0.92 $1.55 $0.46 $0.50 $0.32 $0.23 $1.69 $0.07 $17.95 $1.16 ($0.06) $32.90 $138.79 21FY23 – City Allocations Citywide Administrative Support Communications & Technology Mgmt CTECC Trunked Radio Allocation FY2023 Budget 6,622,093 1,738,119 465,061 452,764 FY2022 Budget 6,154,467 1,790,090 332,077 353,120 Variance ($) Variance (%) 467,626 (51,971) 132,984 99,644 7.6% (2.9%) 40.0% 28.2% 10,853,954 10,759,195 94,759 0.9% Public Works Capital Projects Mgmt Fund 1,575,917 2,129,441 (553,524) (26.0%) • Public Works Projects Mgmt coming down due to decrease in capital spend in the prior 2 years. • CTECC increases driven by cost increases for CAD licenses. 7 22FY23 – Financial Statement Summary FY23 Budget (in millions) Revenue FY19 ACT FY22 BUD FY22 CYE FY23 BUD FY23 BUD v FY22 CYE Var B/(W) FY23 BUD v FY22 BUD Var B/(W) Airline Revenue Non Airline Revenue Interest Total Revenue Operating Expenses $77.2 $97.7 $1.8 $176.7 $74.7 $88.2 $0.4 $163.2 $99.9 $117.9 $0.1 $217.9 $111.6 $125.4 $0.1 $237.1 $11.7 $7.5 $0.1 $19.2 Operating Expenses - Aviation Operating Expenses - City Operating Reserve Federal relief Transfer to Subordinate Obligation $103.2 $11.2 $2.7 $102.7 $11.6 $0.0 ($14.6) $3.4 $103.4 $11.6 $0.1 ($29.6) $129.6 $11.5 $4.2 ($20.8) ($26.2) $0.0 ($4.1) ($8.9) Debt Service (Net of PFC) Total Requirements $33.2 $150.3 $53.2 $156.3 $53.2 $138.6 $57.3 $181.8 ($4.0) ($43.2) Net Income $26.4 $6.9 $79.3 $55.3 ($24.0) $48.4 Enplanements 8,464,615 6,839,990 10,018,573 11,488,054 1,469,481 4,648,064 8 $37.0 $37.2 ($0.2) $73.9 ($26.8) $0.0 ($4.2) $6.2 $3.4 ($4.1) ($25.5) Lower net income in FY23 due to higher expenses, less federal relief application and higher debt service 23THANK YOU 9 24 AIRPORT ADVISORY COMMISSION ITEM 5 – STAFF REPORTS Air Service Update     25    According to Bank of America, ticket sales are showing signs of slowing down:  September 2022 Air Service Snapshot     Airlines have seen a slowdown in system net sales (total sales minus refunds/cancellations); system volumes  (total passengers); and pricing (ticket fares) in recent weeks  If trends don’t reverse in the next couple of weeks, it could indicate a demand problem    Both domestic and international pricing took a step back in recent weeks    Office occupancy levels have plateaued which is leading indicator for corporate travel bookings    AUS monthly seat comparisons to 2019:          Highlights of recent air service announcements/developments include:   Air Canada increased YYZ to two daily flights for the Summer on June 1 and started nonstop service to YVR; YYZ  reverts to 1x eff. Nov. 1 and YVR reduced to 3/wk. However, effective 05Oct (last op 03Oct), with the exception  of 3 frequencies on 19, 21 & 24 Oct for F1, YVR will be removed for the winter season until the end of April,  owing to pilot shortages.    Alaska will resume service to PSP in November; several BOI suspensions throughout Fall and Winter   Allegiant has discontinued service to ABQ, AMA, PBI, PGD, SGF & TUL   American will serve EGE, PSP, RSW & SRQ this Winter season; SNA added eff. Nov.1    British Airways will use slightly small B777‐300ER aircraft in September   Delta will serve LAS for Consumer Electronics Show in January 2023    KLM started year‐round AMS service on March 28, 2022 with 3/week on the 292‐seat A330‐300 and extended  JetBlue has indefinitely suspended EWR & LAX service, FLL suspended until November  service through June 2023  Lufthansa reinstated FRA service on April 8, 2022 with three weekly flights    Southwest will serve BOS, MTJ, PIT & SRQ this Winter season    Spirit will start new daily service to MTY on October 5; LAX is suspended until September    Virgin Atlantic started nonstop service to London (Heathrow) on May 25 with four weekly flights        26Only September 2022 v. 2019 air service comparison:  Current AUS air service for sale to customers:        September 2022 v. 2019 carrier seat share comparison:        27Based on U.S. DOT O&D Passenger Survey, Cirium FM Traffic and ABIA statistics: 17% of ABIA passengers in Q1 2022  were connecting between flights at the Airport.  (Q2 2022 data will be available this fall.)     The following is a list of the top ten domestic and international AUS connecting markets for Q1 2022:                              28    AIRPORT ADVISORY COMMISSION ITEM 8 – CONSENT AGENDA Authorize negotiation and execution of a cooperative contract with Presidio Networked Solutions Inc. d/b/a Presidio Networked Solutions Group LLC to provide web application firewall products and support services, for a term of three years for a total contract amount not to exceed $400,000 29City of Austin 301 W. Second Street Austin, TX Recommendation for Action File #: 22-2974, Agenda Item #: 19. 9/29/2022 Posting Language Authorize negotiation and execution of a cooperative contract with Presidio Networked Solutions Inc. d/b/a Presidio Networked Solutions Group LLC to provide web application firewall products and support services, for a term of three years for a total contract amount not to exceed $400,000. (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 goods and services required for this procurement, there were insufficient or 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 $103,500 is available in the Fiscal Year 2022-2023 Operating Budget of Aviation. Funding in the amount of $206,900 is available in the Capital 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 goods and services. The Financial Services Department has determined this contractor best meets the needs of the department to provide the goods and services required at the best value for the City. For More Information: Inquiries should be directed to Barbara Pavolini Smith, at 512-978-1786 or Barbara.Smith@austintexas.gov <mailto:Barbara.Smith@austintexas.gov>. Council Committee, Boards and Commission Action: September 13, 2022 - To be reviewed by the Airport Advisory Commission. Additional Backup Information: The contract will provide Imperva web application firewall products and support services used to protect the airport parking, ground transportation, and security systems. The appliance protects web applications by filtering, monitoring, and blocking any malicious internet traffic to and from the web application. The State of Texas Department of Information Resources 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 City of Austin Page 1 of 2 Printed on 9/8/2022 powered by Legistar™ 30File #: 22-2974, Agenda Item #: 19. 9/29/2022 costs on hundreds of contracts through a streamlined cooperative purchasing program. Strategic Outcome(s): Mobility, Safety. City of Austin Page 2 of 2 Printed on 9/8/2022 powered by Legistar™ 31To: The Commissioners of the Airport Advisory Commission (AAC) Date: September 13, 2022 Re: New Venue, Dates and Time for Airport Advisory Commission Meetings - Effective January 2023. When selected by the AAC, the preferred new date/time for the AAC meetings will be sent to the City Clerk who will assign dates/times/locations for all City Boards and Commissions to be effective at the beginning of the 2023 calendar year. The City Clerk is “holding” the following locations/dates/times for the AAC to choose from at the September AAC meeting: Option 1 – Austin City Hall/Boards and Commission Room. Second week of every month. Wednesday from 3-5 Option 2 - Austin City Hall/Boards and Commission Room. Second week of every month. Monday from 3-5 Option 3 - (Does not offer Live Stream, but meeting will be recorded by ATXN and shown the next day on the ATXN channel) City of Austin Planning and Development Center (6310 Wilhelmina Delco Dr) Second week of every month. Tuesday from 3-5 With the decision of the venue, dates and times by the AAC – the Department of Aviation will proceed with coordination and confirmation through the City Clerk’s office, and report back to the AAC. The AAC Meetings for the months of September – December, 2022 will not change from the current dates/times and room configuration. 32