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Airport Advisory Commission – Nov. 8, 2022

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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 ) NOVEMBER 8, 2022 3:00 PM 2800 SPIRIT OF TEXAS DRIVE AIRPORT CAREER AND DEVELOPMENT CENTER GRAND CANYON CONFERENCE ROOM 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. APPROVAL OF MINUTES 1. Approve the minutes of the AAC regular meeting on October 11, 2022. 1 1 STAFF BRIEFINGS 2. September 2022 Financial Results presented by Rajeev Thomas, Deputy Chief Finance Officer. 3. Air Service Update presented by Jamy Kazanoff, Air Service Development. 4. Airport data related to the operations during the Formula One Race weekend presented by Jacqueline Yaft, Chief Executive Officer. Journey with AUS (AUS Capital Improvement Program) presented by Somer Shindler, Chief Development Officer. 5. DISCUSSION AND ACTION ITEMS 6. Review actions of City Council at the October 27, 2022 meeting.  Approve a resolution finding the use of the Construction Manager at Risk method of contracting, as authorized by Subchapter F, Chapter 2269 of the Texas Government Code, is the project delivery method that provides the best value to the City for the Barbara Jordan Terminal Optimization – Phase 2 project. Item 10. [Approved on Consent] 7. Discussion regarding Airport ASQ Survey Results presented by Ghizlane Badawi, Chief Operations Officer. Business and Finance Officer. 8. Discussion of the AUS Advertising Request for Proposal presented by Mookie Patel, Chief 9. Discussion of FY2023 AUS Grant Application under Bipartisan Infrastructure Law – Airport Terminals Program presented by Rajeev Thomas, Deputy Chief Financial Officer and Somer Shindler, Chief Development Officer. 10. Discussion of the September 7, 2022 Power Outage at the Barbara Jordan Terminal presented by Brian Long, Deputy Chief Officer – Infrastructure Management, Ghizlane Badawi, Chief Operating Officer, and Lisa Martin, Vice President, Electric System Engineering & Technical Services, Austin Energy. 11. Review of Commission recommendations and actions to discuss with appointing City Council Member. FUTURE AGENDA ITEMS NEXT REGULAR MEETING The next regular meeting of the AAC is scheduled for December 13, 2022 at 3:00 PM. 2 2 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 3AIRPORT ADVISORY COMMISSION ITEM 1 - APPROVAL OF MINUTES October 11, 2 022 Regular Meeting 4 AIRPORT ADVISORY COMMISSION (AAC) REGULAR MEETING MINUTES OCTOBER 11, 2022 The Airport Advisory Commission convened in a regular meeting on October 11, 2022 at 2800 Spirit of Texas Drive in Austin, Texas. Chair E. Sepulveda called the regular meeting to order at 3:04 p.m. Commissioners in Attendance: Eugene Sepulveda, Chair Jeremy Hendricks, Secretary Billy Owens Commissioners in Attendance Remotely: Wendy Price Todd, Vice Chair Bakari Brock Commissioners Absent: Chad Ennis Raymond Young Ernest Saulmon Vicky Sepulveda Jonathan Coon Scott Madole PUBLIC COMMUNICATION: GENERAL None APPROVAL OF MINUTES 1. Approve the minutes of the AAC regular meeting on September 13, 2022. The minutes from the meeting of September 13, 2022 were approved on Commissioner Hendricks motion and Commissioner Saulmon seconds on a 10-0-0-1 vote. Commissioner Ennis was absent. 1 5STAFF BRIEFINGS August 2022 Financial Results presented by Rajeev Thomas, Deputy Chief Finance Officer. Air Service Update presented by Jamy Kazanoff, Air Service Development. Verbal briefing on airport data related to the August 10, 2022 Terminal Evacuation and update to preparations for the 2022 ACL and F1 passenger traffic presented by Ghizlane Badawi, Chief Operating Officer. CONSENT AGENDA Approve a resolution finding the use of the Construction Manager at Risk method of contracting, as authorized by Subchapter F, Chapter 2269 of the Texas Government Code, is the project delivery method that provides the best value to the City for the Barbara Jordan Terminal Optimization – Phase 2 project. (Note: MBE/WBE or DBE goals will be established prior to issuance of this solicitation.) Consent item was approved on Commissioner Hendricks motion and Commissioner Saulmon seconds on a 10-0-0-1 vote. Commissioner Ennis was absent. REVIEW OF CITY COUNCIL AND COMMISSION ACTIONS Review actions of City Council on item #17 at the September 29, 2022 meeting.  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. Approved on Consent Commission request for November briefing on the September 7, 2022 Power Outage at the Barbara Jordan Terminal. Commission request for November briefing of the airport advertising contract. 2. 3. 4. 5. 6. 7. 8. 2 6Review of topics to discuss with appointing City Council Member. Commissioners were reminded to routinely speak to their appointing City Council Member. a. The August 2022 financial results were exceptional, hoping to see financial results in a breakdown of route and growth, as well as connecting passengers. b. Preparations for ACL and F1 are well underway with airlines, concessioners, and security. c. Recommendation of approval for the CMR during phase 2 of the Barbara Jordan d. Austin Energy was to give a report during the October AAC which will now be presented e. Commissioner Todd has expressed concern and has asked to address the concern of the Terminal. during the November meeting. airport advertising contract. FUTURE AGENDA ITEMS NEXT REGULAR MEETING The next regular meeting of the AAC is scheduled for November 8, 2022 at 3:00 p.m. Chair E. Sepulveda adjourned the meeting at 3:45 p.m. without objection. 3 7 AIRPORT ADVISORY COMMISSION ITEM 2 – STAFF BRIEFINGS September 2022 Financial Results, presented by Rajeev Thomas, Deputy Chief Finance Officer 8 MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: November 8, 2022 SUBJECT: Austin-Bergstrom International Airport (AUS) Update September 2022 Financial Results Total passenger traffic increased 46.48% in September 2022 compared to September 2021 (which was in the midst of the aviation industry recovery from the impacts of the COVID-19 pandemic) and 25.4% compared to September 2019 (see below chart). Passenger enplanements totaled 883,790 in September 2022, an increase of 25.6% or 180,020 passengers compared to September 2019. Average daily departures have increased from 193 in September 2019 to 260 in September 2022, an increase of 67 daily departures or 34.7%. Table #1 FY 2022 FY 2021 Variance September September Fav (Unfav) FY 2022 YTD FY 2021 YTD Variance YTD Fav (Unfav) Enplanements Landing Weights Cargo Tonnage 883,790 601,732 46.9% 10,133,735 5,207,769 1,121,689,899 867,079,407 29.4% 12,645,193,574 7,195,387,954 13,037 10,738 21.4% 154,750 116,633 94.6% 75.7% 32.7% Operating Revenue $23,074,053 $16,161,875 $6,912,178 $248,148,460 $153,260,451 $94,888,009 Airport OPEX $17,891,780 $14,778,724 ($3,113,055) $107,384,497 $90,183,729 ($17,200,768) Total Requirements $23,402,804 $22,325,968 ($1,076,835) $172,307,779 $153,135,844 ($19,171,935) Net Income Before Federal Relief ($328,751) ($6,164,093) $5,835,343 $75,840,681 $124,607 $75,716,074 Federal Relief Reimbursement $473,770 $833,934 ($360,164) $36,476,926 $29,872,172 $6,604,754 Net Income After Federal Relief $145,019 ($5,330,159) $5,475,179 $112,317,606 $29,996,778 $82,320,828 Table #1 illustrates September 2022’s enplanements totaled 883,790 which is 46.9% higher than September 2021, serving an additional 282,058 enplaned passengers. Landing weights totaled 1,122 million pounds in September 2022 representing an increase of 29.4% compared to September 2021. Cargo volume totaled 13,037 tons in September 2022 representing an increase of 21.4% compared to September 2021. 9Monthly operating revenues increased 42.8% or $6.9M compared to September 2021. Totaling $23.1M, September 2022 operating revenues reflect the impact of the strong passenger traffic in the month. September 2022 operating revenue is composed of 44% airline revenue and 55% non-airline revenue. Airport operating expenses totaled $17.9M for the month, an increase of 21.1% or $3.1M compared to September 2021. The elevated operating expenses in the month of September is primarily the result of year end expenses charged in the final month of the fiscal year, remaining encumbrance balances not yet posted charging in full in the month, health insurance sweep, and three pay periods occurring in the month. As a result, AUS reported $0.3M deficit (before federal relief funding) in September 2022 compared to deficit of $6.2M in September 2021. Fiscal Year 2022 Financial Results As shown in Table #1, FY2022 enplanements totaled 10.1M compared to 5.2M in FY2021; 94.6% increase over FY2021 and 19.7% over FY2019. FY2022 Landed Weights were 75.7% higher than FY2021 and 27.7% higher than FY2019. AUS delivered strong financial performance in Fiscal Year 2022 (FY2022) when compared to Fiscal Year 2021 (FY2021). FY2022 Operating Revenue totals $248.1M compared to $153.3M in FY2021 (before airline reconciliation), a 61.9% increase. Airport Operating Expenses totaled $107.4M in FY2022 compared to $90.2M in FY2021, a 19.1% increase. Net income before federal relief funding totals $75.8M in FY2022 compared to $0.1M in FY2021, an increase of $75.7M. 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 $163,210,843 $217,910,382 $248,148,460 $84,937,617 52.0% $30,238,078 Airport OPEX $105,883,471 $109,639,361 $107,384,497 ($1,501,026) Total Requirements $170,639,172 $175,080,264 $172,307,779 ($1,668,607) (1.4%) (1.0%) $2,254,864 $2,772,485 Net Income for Debt Service $45,777,070 $96,078,412 $129,087,995 ($83,310,925) (182.0%) ($33,009,583) (34.4%) Net Income Before Federal Relief ($7,428,329) $42,830,118 $75,840,681 $83,269,010 1121.0% $33,010,563 Federal Relief Reimbursement $18,180,605 $36,543,280 $36,476,926 $18,296,321 100.6% ($66,354) Net Income After Federal Relief $10,752,276 $79,373,398 $112,317,606 $101,565,331 944.6% $32,944,209 13.9% 2.1% 1.6% 77.1% (0.2%) 41.5% AUS delivered favorable 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, FY2022 revenues exceed budgeted revenues by 52.0% or $84.9M and exceeded CYE by 13.9% or $30.2M. The increased revenues are driven by the strong passenger traffic and higher daily flight activity in the fiscal year. Airport operating expenses are 1.4% or $1.5M above budgeted expenses due primarily to elevated need associated with higher than anticipated passenger traffic in the year and rising cost of goods and services. The anticipated elevated expenses were factored into preparation of the FY2022 CYE, as such operating expenses are 2.1% or $2.3M below CYE as a result of higher than anticipated personnel vacancy rates. Before federal relief funding application, AUS reports net income of $75.8M, which exceeds the seasonalized budget estimate by $83.3M and CYE by $33.0M. Attachments: September 2022 - AAC Financial Report 10CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 12 Month(s) ended September 30, 2022 FY 2022 Budget Budget Seasonalized 12 month(s) FY 2022 CYE CYE Seasonalized 12 month(s) Y-T-D to Budget Y-T-D to CYE Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) Variance Fav (Unfav) % Variance Fav (Unfav) 26,030,400 48,629,418 74,659,818 26,030,400 48,629,418 74,659,818 37,444,308 62,477,517 99,921,825 37,444,308 62,477,517 99,921,825 43,080,567 70,840,509 113,921,076 17,050,167 22,211,091 39,261,258 65.5% 45.7% 52.6% 5,636,259 8,362,992 13,999,251 38,325,261 4,983,334 11,586,297 10,613,694 5,097,925 2,059,095 15,532,040 88,197,646 38,325,261 4,983,334 11,586,297 10,613,694 5,097,925 2,059,095 15,532,040 88,197,646 54,063,848 7,256,248 16,719,839 13,077,336 5,739,902 2,679,243 18,390,238 117,926,654 54,063,848 7,256,248 16,719,839 13,077,336 5,739,902 2,679,243 18,390,238 117,926,654 58,743,027 8,387,495 19,901,229 15,647,057 6,739,256 3,390,230 20,485,812 133,294,106 20,417,766 3,404,161 8,314,932 5,033,363 1,641,331 1,331,135 4,953,772 45,096,460 53.3% 68.3% 71.8% 47.4% 32.2% 64.6% 31.9% 51.1% 4,679,179 1,131,247 3,181,390 2,569,721 999,354 710,987 2,095,574 15,367,452 353,379 163,210,843 353,379 163,210,843 61,903 217,910,382 61,903 217,910,382 933,278 248,148,460 579,899 84,937,617 164.1% 52.0% 871,375 30,238,078 1407.6% 13.9% 5,411,891 6,654,005 9,698,969 14,520,686 16,919,848 0 53,205,399 448,220 6,154,467 1,790,090 342,887 0 0 332,077 353,120 2,129,441 427,505 3,392,000 15,369,807 5,411,891 6,654,005 9,698,969 14,520,686 16,919,848 0 53,205,399 448,220 6,154,467 1,790,090 342,887 0 0 332,077 353,120 2,129,441 0 0 11,550,302 5,411,891 6,654,005 9,698,969 14,520,686 16,919,848 42,895 53,248,294 448,220 6,154,467 1,790,090 342,887 0 88,004 332,077 353,120 2,129,441 642,307 0 12,280,613 5,411,891 6,654,005 9,698,969 14,520,686 16,919,848 42,895 53,248,294 448,220 6,154,467 1,790,090 342,887 0 0 332,077 353,120 2,129,441 642,307 0 12,192,609 5,412,100 6,653,728 9,698,649 14,520,371 16,919,567 42,900 53,247,315 448,220 6,154,467 1,790,090 342,887 125,665 0 332,077 353,120 2,129,441 0 0 11,675,967 1.0% (16.8%) 7.0% (51.8%) (1.4%) (0.0%) 0.0% 0.0% 0.0% 0.0% N/A (0.1%) 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% 0.0% N/A (209) 277 320 316 281 (42,900) (41,915) 0 0 0 0 (125,665) 0 N/A 0 0 0 0 0 N/A 579,627 651,614 909,578 114,045 2,254,864 (209) 277 320 316 281 (5) 980 0 0 0 0 (125,665) 0 N/A 0 0 0 642,307 0 N/A (125,665) (1.1%) 516,642 15.1% 13.4% 14.0% 8.7% 15.6% 19.0% 19.7% 17.4% 26.5% 11.4% 13.0% 0.9% 8.0% 3.1% 1.2% 2.1% (0.0%) 0.0% 0.0% 0.0% 0.0% (0.0%) 0.0% 0.0% 0.0% 0.0% 0.0% N/A 0.0% 0.0% 0.0% 100.0% 4.2% 1.6% 1 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 2022 New Money TOTAL Net Debt Service OTHER REQUIREMENTS Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll 27th Payroll Operating Reserve 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 62,598,260 6,445,332 30,703,982 6,135,897 105,883,471 62,598,260 6,445,332 30,703,982 6,135,897 105,883,471 62,579,105 8,182,246 29,451,911 9,426,099 109,639,361 62,579,105 8,182,246 29,451,911 9,426,099 109,639,361 61,999,478 7,530,632 28,542,333 9,312,054 107,384,497 598,782 (1,085,300) 2,161,649 (3,176,157) (1,501,026) TOTAL REQUIREMENTS 174,458,677 170,639,172 175,168,268 175,080,264 172,307,779 (1,668,607) (1.0%) 2,772,485 Federal Relief Reimbursement (Parking) Federal Relief Reimbursement (Debt Service) TOTAL FEDERAL RELIEF REIMBURSEMENT (3,569,365) (14,611,240) (18,180,605) (3,569,365) (14,611,240) (18,180,605) (6,897,750) (29,645,530) (36,543,280) (6,897,750) (29,645,530) (36,543,280) (6,831,395) (29,645,530) (36,476,926) 3,262,030 15,034,290 18,296,321 91.4% 102.9% 100.6% (66,355) 0 (66,354) (1.0%) 0.0% (0.2%) EXCESS (DEFICIT) OF TOTAL AFTER FEDERAL RELIEF 6,932,771 10,752,276 79,285,394 79,373,398 112,317,606 101,565,331 944.6% 32,944,209 41.5% (11,247,834) (7,428,329) 42,742,114 42,830,118 75,840,681 83,269,010 1121.0% 33,010,563 77.1% 11CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY22 (Sep 22) vs FY21 (Sep 21) Fiscal YTD - This Year vs. Last Year FY22 (Oct 21 - Sep 22) vs FY21 (Oct 20 - Sep 21) FY22 Sep-22 FY21 Sep-21 Fav (Unfav) $ Variance Fav (Unfav) % Variance Fav (Unfav) $ Variance Fav (Unfav) % Variance 3,865,617 6,191,044 10,056,661 2,833,227 5,284,167 8,117,393 5,422,426 834,739 1,566,163 1,190,009 441,113 360,881 2,913,773 12,729,105 3,878,093 514,770 215,864 565,805 384,330 79,225 2,402,275 8,040,362 288,287 23,074,053 4,120 16,161,875 9,868,009 1,677,819 5,390,606 955,345 17,891,780 8,161,235 890,659 5,016,598 710,232 14,778,724 0 451,180 554,223 807,928 1,209,239 1,463,729 9,537 4,495,837 42,025 512,872 167,828 28,574 0 31,148 33,105 199,636 0 1,015,187 39 451,036 593,301 844,159 1,276,439 1,092,532 0 4,257,506 36,308 527,370 156,604 13,844 0 25,657 25,094 316,130 2,188,732 3,289,738 1,032,390 906,877 1,939,267 1,544,334 319,969 1,350,299 624,204 56,783 281,656 511,498 4,688,743 284,167 6,912,178 (1,706,773) (787,161) (374,008) (245,113) (3,113,055) 39 (144) 39,077 36,231 67,200 (371,197) (9,537) (238,331) (5,717) 14,498 (11,224) (14,730) 0 (5,491) (8,011) 116,494 2,188,732 2,274,551 36.4% 17.2% 23.9% 39.8% 62.2% 625.5% 110.3% 14.8% 355.5% 21.3% 58.3% 6897.1% 42.8% (20.9%) (88.4%) (7.5%) (34.5%) (21.1%) 100.0% (0.0%) 6.6% 4.3% 5.3% (34.0%) N/A (5.6%) (15.7%) 2.7% (7.2%) (106.4%) N/A (21.4%) (31.9%) 36.9% 100.0% 69.1% FY22 YTD Sep-22 43,080,567 70,840,509 113,921,076 58,743,027 8,387,495 19,901,229 15,647,057 6,739,256 3,390,230 20,485,812 133,294,106 933,278 248,148,460 61,999,478 7,530,632 28,542,333 9,312,054 107,384,497 0 5,412,100 6,653,728 9,698,649 14,520,371 16,919,567 42,900 53,247,315 448,220 6,154,467 1,790,090 342,887 125,665 332,077 353,120 2,129,441 0 11,675,967 FY21 YTD Sep-21 25,286,933 53,139,416 78,426,350 27,942,020 3,628,632 12,850,788 7,344,348 5,610,468 1,897,783 15,447,082 74,721,121 112,980 153,260,451 56,378,182 4,798,319 24,300,072 4,707,156 90,183,729 504 5,412,800 7,081,300 10,042,648 15,457,870 8,471,700 0 46,466,822 435,740 6,328,330 1,879,259 166,126 0 307,939 301,150 3,793,554 3,273,194 16,485,292 17,793,633 17,701,093 35,494,726 30,801,007 4,758,863 7,050,441 8,302,709 1,128,787 1,492,447 5,038,730 58,572,985 820,299 94,888,009 (5,621,296) (2,732,313) (4,242,261) (4,604,898) (17,200,768) 504 700 427,572 343,999 937,499 (8,447,867) (42,900) (6,780,492) (12,480) 173,863 89,169 (176,761) (125,665) (24,138) (51,970) 1,664,113 3,273,194 4,809,325 70.4% 33.3% 45.3% 110.2% 131.1% 54.9% 113.0% 20.1% 78.6% 32.6% 78.4% 726.1% 61.9% (10.0%) (56.9%) (17.5%) (97.8%) (19.1%) 100.0% 0.0% 6.0% 3.4% 6.1% (99.7%) N/A (14.6%) (2.9%) 2.7% 4.7% (106.4%) N/A (7.8%) (17.3%) 43.9% 100.0% 29.2% 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 2022 New Money Total Debt Service Other Requirements Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll 27th Payroll CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Trf to Subordinate Obligation 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 23,402,804 22,325,968 (1,076,835) (4.8%) 172,307,779 153,135,844 (19,171,935) (12.5%) (328,751) (6,164,093) 5,835,343 94.7% 75,840,681 124,607 75,716,074 60764.0% (473,770) 0 (473,770) (833,934) 0 (833,934) (360,164) 0 (360,164) (0.43) N/A (43.2%) (6,831,395) (29,645,530) (36,476,926) (2,742,648) (27,129,523) (29,872,172) 4,088,747 2,516,007 6,604,754 1.49 9.3% 22.1% TOTAL SURPLUS (DEFICIT) AFTER FEDERAL RELIEF 145,019 (5,330,159) 5,475,179 102.7% $ 112,317,606 $ 29,996,778 $ 82,320,828 274.4% Note: Columns may not add to totals shown because of rounding 12 AIRPORT ADVISORY COMMISSION ITEM 3 – STAFF BRIEFINGS Air Service Update, by Jamy Kazanoff, Air Service Development 13 November 2022 Air Service Snapshot AUS monthly seat comparisons to 2019: Highlights of recent air service announcements/developments include:  Alaska dropped all planned PSP service and will discontinue LAX eff. Jan. 10; several BOI suspensions throughout Fall and Winter – no service in Oct, Feb & Mar & weekends only in Nov‐Jan; will serve LAS for Consumer Electronics Show in January with one roundtrip  American will serve EGE, PSP, RSW & SRQ this Winter season; IAD suspended Jan‐Apr; MCI reduced 2x→1x Jan‐ Apr; STL reduced 2x→1x from Jan onwards; MEM service starts 1x on Jan 10; PSP will be served daily Jan‐Apr; SJU discontinued in Nov; SJD will be served daily from February onwards; additional RNO flights in Dec & Jan; OKC increased 1x→2x in Jan but CVG, DEN & IND reduced 2x→1x; note: AA’s RSW service will not start until February at the earliest due to Hurricane Ian and SRQ was only served in November  Spirit started new daily service to MTY on October 5; increased MCO from 1x→2x for Jan; new daily MIA service  Virgin Atlantic started nonstop service to London (Heathrow) on May 25 with four weekly flights; daily service is starts on Jan. 1 scheduled for May‐July 2023  Air Canada increased YYZ to two daily flights for Summer 2022 on June 1 and started nonstop service to YVR; YYZ reverts to 1x eff. Nov. 1; AC suspended YVR for Oct‐April  Allegiant has discontinued service to ABQ, AMA, PBI, PGD, SGF & TUL; IND suspended Sept‐Feb, MEM suspended Nov onwards  Delta will serve LAS for Consumer Electronics Show in January with two roundtrips  JetBlue has indefinitely suspended EWR & LAX service, FLL suspended until November but suspended again February onwards  KLM started AMS service on March 28, 2022 with three weekly flights and extended service year‐round   Southwest will serve BOS, MTJ, PIT & SRQ this Winter season Lufthansa reinstated FRA service on April 8, 2022 with three weekly flights 14November 2022 v. 2019 air service comparison: Current AUS air service for sale to customers: November 2022 v. 2019 carrier seat share comparison: 15WN: Southwest; AA: American; DL: Delta; UA: United; AS: Alaska; NK: Spirit; G4: Allegiant; B6: JetBlue; BA: British Airways; F9: Frontier Connecting markets: Based on U.S. DOT O&D Passenger Survey, Cirium FM Traffic and ABIA statistics: 16% of ABIA passengers in Q2 2022 were connecting between flights at AUS. The following is a list of the top ten domestic and international AUS connecting markets for Q2 2022: Domestic International Market MSY‐SAN PHX‐TPA DAL‐HRL MSY‐PHX LAS‐MSY PHX‐TPA LAX‐MCO LAX‐MSY BWI‐SAN LAX‐SJU Carrier Southwest Southwest Southwest Southwest Southwest American American Southwest Southwest American Market LAX‐PUJ LAX‐CUN LAS‐CUN LAS‐CUN ORD‐CUN BNA‐CUN LAX‐CUN SAN‐CUN LAX‐LIR MSY‐CUN Carrier American American Southwest American American Southwest Southwest Southwest American Southwest 16 AIRPORT ADVISORY COMMISSION ITEM 5 – STAFF BRIEFINGS Journey with AUS – Capital Improvement Program, presented by Lyn Estabrook, Division Manager Planning and Development and Somer Shindler, Chief Development Officer 17Journey With AUS Exciting Experiences Ahead The City of Austin Airport Capital Program Update Airport Advisory Commission Lyn Estabrook October 25, 2022 18Agenda: AUS Capital Projects Update Airport Expansion Development Solicitations Update Presenter Name ate 19Journey With AUS Exciting Experiences Ahead AUS Capital Projects Update Active Projects 20Project Legend • Cargo Development East • West Gates Expansion / Gate 13 • AEDP Airfield Infrastructure – Midfield Taxiways • BHS project Austin-Bergstrom International Airport Campus Map 2113188.003 AEDP Airfield Infrastructure-Midfield Taxiway Envision|Design|Build|Activate Sponsor – Ghizlane Badawi AUS Project Manager – Ellen Brunjes-Brandt Status: • Preliminary Design Phase - Preliminary Engineering Report (PER) • • CMAR in Contract Development for Preconstruction Services Survey, Geotechnical investigation, and Subsurface Utility Engineering Risk Mitigation Schedule delays due to South Terminal Determination Proceeding with preliminary engineering and coordination with stakeholders. %DBE Prof Svs: 17.00% Precon Svs: 11.12% Delivery Methods: Design – Professional Services – RS&H Construction – CMAR – Contracting Phase – Austin Bridge and Road Project Costs: To-Date – $170,700 Obligated – $3,189,693 Total Budget – $203,280,000 Project Schedule: Austin-Bergstrom International Airport Description – Design and construct two parallel Midfield Taxiways with connectors and access to the maintenance ramp. The project includes bridges for vehicle access to the midfield, utility relocation, drainage improvements, demolition of existing pavements and infrastructure, new fencing, service roads and modifications to Emma Browning. Other Notes –This project will provide connectivity between the east and west side of the airport when the existing midfield taxiways are removed to build a second concourse. 2213189.012 AEDP Building Demolition Envision|Design|Build|Activate Sponsor – Ghizlane Badawi AUS Project Manager – Ellen Brunjes-Brandt Status: • 90% Design – Finalizing Bid Documents • • Advertise to bid 12-5-2022, NTP Construction 4- 2023 Site Plan Exemption Permit – In Progress Risk Mitigation Schedule delays due to South Terminal Determination Adjust Bid Date as necessary %DBE Design: 15.8% Construction: TBD% Delivery Methods: Design – Rotation List– Corgan Construction – IFB –TBD Project Costs: To-Date – $159,982 Obligated- $1,379,855 Total Budget – $14,108,000 - Project Schedule: Austin-Bergstrom International Airport Description – Demolish 30+ Buildings on South Campus to remove unused and unsafe buildings and make way for future Development Other Notes – 2313189.026 – AUS Cargo Development East Envision|Design|Build|Activate Sponsor – Mookie Patel AUS Project Manager – Robert Mercado Status: • Phase 1: Site work, building pad and fencing near complete. • Phase 2: Building piers & foundation underway PEMB parts arriving November 2022. • Budget currently on track for Completion August 2023. Risk Mitigation Schedule delays due to material delays or weather until dry-in. Ordering long-lead materials early and tracking delivery and install times. %MWBE Anticipated: 7.36% Contract Goal: 7.40% Delivery Methods: Design: Rotation List A/E Prof Services (Atkins) Construction: Phase 1: CSP Change Order (JE Dunn) Phase 2: Low Bid Proposal (Flintco) Project Costs: To-Date: $13,196,472 Total Budget: $33,358,000 Project Schedule: Austin-Bergstrom International Airport Description – A 90,000 SF facility for operators/tenants with room to expand to 99,000 SF. Includes tenant improvement, employee parking, truck staging, drainage infrastructure, 3 aircraft parking positions and AEGB 3-Star rating. 2413184.014 – Barbara Jordan Terminal Optimization (West Gates Expansion) Envision|Design|Build|Activate Sponsor – Ghizlane Badawi AUS Project Manager – Robert Mercado Status: • • • Contractor bidding First Package 100% CDs due end of January 2023. Budget Reconciliation/ Value Engineering underway Risk Mitigation Schedule delays due to construction cost escalation. Verify scope of work, value engineer and funding source to move forward. Delivery Methods: Design: Rotation List A/E Prof Services (Page Architects) Construction: CMR Selection (Hensel Phelps) Project Costs: To-Date: $2,564,592 Current Budget: $113,685,000 Projected Est. Total Project Cost (TPC): $148M Project Schedule: Austin-Bergstrom International Airport %MWBE (design) Anticipated: 40.24% Contract Goal: 31.60% Description – The main expansion project will design and build an addition of 3 Gates to the west end of the Barbara Jordan Terminal (BJT) and replace 12 aging boarding gates. This project will provided infrastructure needed for passenger growth, comfort, health and safety. 2513184.014 – Barbara Jordan Terminal Optimization (Gate 13 Renovation) Envision|Design|Build|Activate Sponsor – Ghizlane Badawi AUS Project Manager – Robert Mercado Status: • • • • Interior work is under construction to be complete March 2023 Enhanced work is being priced to be added to project. Exterior Work CDs being completed to allow bus operation. Escalators to arrive early December 2022 Risk Mitigation Schedule delays due to availability of labor and materials. Verify scope of work to include non long-lead materials. %MWBE (design) Anticipated: 20.46% Contract Goal: 3.15% Delivery Methods: Design: Rotation List A/E Prof Services (Page Architects) Construction: JOC Rotation / CMR (Alpha Bldg. and Hensel Phelps) Project Costs: To-Date: $622,790 Current Budget: $7,000,000 Project Schedule: Austin-Bergstrom International Airport Description – The renovation of existing Gate 13 in the east end of the Barbara Jordan Terminal (BJT) to allow for more efficient bus operation and ground loading of planes on the Apron. Scope includes the installation of 2 escalators and a central stairway. 266000.121–Midfield Investigations and Vehicle Checkpoints Sponsor – TBD Project Manager – Torrey Henson Status: Envision|Design|Build|Activate • Notice to proceed issued for Consultant. • • • • • Project schedule expected week of October 24. First Phase of Midfield survey due Nov 11. Remaining survey information due Feb, 2023. Checkpoint Design to begin by Nov 15. Budget: Design delayed due to contracting and subcontractor contract finalization. Risk Mitigation Schedule delays due to change in subcontractors contract executions; Entire survey scope will take place during during overnight hours. Have begun coordinating with Airlines and Operations for expected aircraft/equipment relocations, and Taxiway/RON/APRON closures. Delivery Methods: Design Bid Build – Rotation List (existing) Construction – TBD Project Costs: To-Date – [TBD] Total Budget – $6,500,000 %MWBE Anticipated: TBD% Contract Goal: TBD% Project Schedule: Description: This project will expand guard-shacks at two vehicle Checkpoints, Alpha and Charlie, to allow efficient and secure access to the Aircraft Operations Area (AOA). Additionally, this project includes scope to investigate the locations for midfield taxiways. Technical investigations of the airfield includes surveys, geotechnical borings, and other site investigations. 275415.112 – Existing Terminal Centralized Baggage Handling System Upgrades Envision|Design|Build|Activate Sponsor – Ghizlane Badawi AUS Project Manager – Rohini Kumarage Status: • Phase 1 – 100% Baggage Handling System Design Approved by TSA Tenant/Enabling – North Side Tenant Demolition has begun • • West Infill Phase 2 – 60% Design submitted to AUS • Budget: Phase 1 on track, Phase 2 pending 100% drawings Risk Mitigation Construction Material shortage and lead/delivery times Ordering all equipment and materials early, tracking material pricing and procurement/delivery times %MWBE Anticipated: 10% Contract Goal: 5.52% Delivery Methods: Design-Build Contractor: Whiting-Turner Project Costs: To-Date – $21,631,376.97 Total Budget – $236,782,920 Project Schedule: 05/08/2017 - 11/30/2020 Prelim. Phase Design Phase 01/28/2021 - 01/02/2023 Austin-Bergstrom International Airport Description – Design and build a new centralized baggage handling system (BHS) to increase screening capacity, address existing operational concerns, and upgrade to 30 Million Annual Passengers processed. FY20 FY21 FY22 FY23 FY24 FY25 FY26 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12/15/2021 - 01/24/2023 Bid/Award/Execution Phase 04/11/2022 - 12/23/2025 Construction Phase 12/23/2025 - 03/05/2026 Post-Construction Phase 28AEDP Element Programming Sponsor – Somer Shindler AUS Lead – Jennifer Williams Status: BJT Optimization – Working on analysis SSCP, Ticket Counter needs to match BHS Project capacity CUP - Location determined; analyzing technology solutions Tunnel – Kicked off series of scope workshops for cell sizing: APM, BHS, Utilities • DDFS and Planning Assumptions – Finalized by end of November • • • • Design Standards – Reviewing outline; benchmarking completed • • Horizontal and Vertical Control – Survey and Geotech underway; updated final ALP due in February Sustainability Goals Definition - Subconsultant contract being executed Risk Mitigation Envision|Design|Build|Activate %MWBE Anticipated: 34.3% Contract Goal: 31.6% 1. Output can change current project scopes 2. Schedule of current service 3. Cost 1. Coordinating daily with PMs and EPM 2. Focus on BJT Optimization while working on larger Program 3. Thorough analysis and complete scope definition to limit scope creep during construction; risk analysis performed during programming; analyzing delivery methods to minimize cost and schedule impacts Delivery Methods: tbd Project Costs: To-Date – $1.17M Total Budget – $25M (current authority) Description – Initial tasks may include campus-wide programming for facilities and infrastructure and will include the airside, terminal, landside, and utility improvements necessary to support AUS's Airport Expansion and Development Program (AEDP) through 2030. Deliverables from the Airport Principal A/E consultant include multiple planning studies, project definition documents and schematic design packages for use by AUS to solicit design and construction services for the implementation of specific projects within the AEDP. Project Milestones: • • • • • • • DDFS and Planning Assumptions – November 30 BJT Optimization – Outline for PDDs April 2023; Complete December 2023 CUP - Utility Programming – March 2023 Tunnel – Anticipate Survey and Geotech January 2023; Cell Decision December 2023 Design Standards – Complete by December 2023 Sustainability Goals Definition - Workshops with Stakeholders Dec – February; Est Completion April 2023 Horizontal and Vertical Control – Facility Requirements received 9/30/2022; Final H + V Control Plan January 2023; Cost estimates in April 2023 Austin-Bergstrom International Airport 29Austin-Bergstrom International Airport 30Journey With AUS Exciting Experiences Ahead Thank You! Questions? Follow progress of the program at AustinTexas.gov/AEDP AEDP Contracting & Business Opportunities AustinTexas.gov/AEDP-Business 31 AIRPORT ADVISORY COMMISSION ITEM 7 – STAFF BRIEFINGS Discussion regarding Airport ASQ Survey Results, presented by Ghizlane Badawi, Chief Operating Office 32ASQ Departures Passenger Satisfaction Report AUS – Airport Performance Q3 2022 © 2022 ACI Airport Performance – Q3 2022 33AUS – Airport Performance Satisfaction: Overall & by Segments – Q3 2022 Overall Satisfaction Overall Satisfaction by: 4.14 (Average out of 5-pt scale) (n=347) Main Reason for Travel Traffic Type Connection Group Composition Business Leisure Personal n=98 n=125 n=124 Domestic International n=342 ^ Direct Flight Connecting PAX n=271 n=76 Alone In Group n=196 n=151 On Time Delayed n=282 n=59 4.06 4.09 4.27 4.14 4.13 4.20 4.10 4.20 4.18 3.89 4.35 3.96 Score Distribution Flight Status Excellent Very Good Good 42% 36% 18% Fair 3% Poor 1% Perception of Crowd* Not crowded (T2) Crowded (B2) n=142 n=89 Base (n): Respondents providing a valid response Q10. Based on your experience today, please rate THIS airport – Overall Satisfaction Note: The green and red values indicate that the segment’s performance is higher or lower at a statistically significant level (95%). Each segment’s performance is compared to that of the rest of the groups, i.e., TOTAL others (excluding their own segment). *T2 and B2 respectively refer to respondents who selected the top 2 boxes (Not at all crowded, Not crowded) and the bottom 2 boxes (Crowded, Very crowded) on the 5-pt scale. ^ Results cannot be presented due to the very small sample (<10) © 2022 ACI Airport Performance – Q3 2022 2 34AUS – Airport Performance Satisfaction by Category & Service Quality Items – Q3 2022 Average (out of 5-pt scale) Diff. (Q3 2022 vs. Q2 2022) Overall Satisfaction Arrival at the Airport Check-in Security Screening Shopping / Dining Gate Areas 4.12 4.25 4.24 3.68 3.86 Throughout the Airport 4.01 Airport Atmosphere 3.96 Overall Satisfaction Ease of getting to the airport Signage to access terminal VFM: Transport Ease of finding check-in area Waiting time: Check-in Courtesy & helpfulness: Check-in staff Ease in security screening Waiting time: Security screening Courtesy & helpfulness: Security staff Restaurants/bars/cafés VFM: Restaurants/bars/cafés Shops VFM: Shops Courtesy & helpfulness: Shopping and dining staff Comfort of waiting at gate areas Availability of seats at gate areas Ease of finding way Availability of flight info. Walking distance inside terminal Ease of making connection Courtesy & helpfulness: Airport staff Wi-Fi service quality Availability of charging stations Entertainment & leisure options Availability of washrooms Cleanliness of washrooms Health safety Cleanliness Ambience 4.14 4.21 4.16 3.99 4.34 4.15 4.27 4.26 4.20 4.24 3.92 3.40 3.70 3.49 3.94 3.83 3.89 4.21 4.14 4.08 4.15 4.26 3.83 3.71 3.84 4.00 3.80 4.03 3.88 3.99 0.01 0.01 0.01 0.17 0.04 -0.02 -0.04 0.10 0.10 0.00 0.14 0.20 0.02 0.12 -0.05 0.03 0.17 0.02 -0.01 0.01 0.01 0.03 -0.08 0.04 0.11 -0.12 -0.04 -0.07 -0.10 0.04 Average scores by category are based on the average scores of all items within the category, weighted by their number of respondents. All items have the same importance as there are no additional weights applied. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the segment’s performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 3 35AUS – Airport Performance Satisfaction by ASQ Indexes & Service Quality Items – Q3 2022 Overall Satisfaction Average (out of 5-pt scale) Diff. (Q3 2022 vs. Q2 2022) Overall Satisfaction Ease of getting to the airport Ease of finding check-in area Ease of finding way Ease of making connection Waiting time: check-in Ease of Travelling Index 4.25 Ease in security screening Waiting Time Index 4.20 Waiting time: security screening Staff Index 4.19 Courtesy & helpfulness: border/passport control staff N/A Waiting time: border/passport control N/A Courtesy & helpfulness: staff in check-in area Courtesy & helpfulness: security staff Courtesy & helpfulness: shopping and dining staff Courtesy & helpfulness: airport staff 4.14 4.21 4.34 4.26 4.21 4.15 4.15 4.20 4.27 4.24 3.94 4.26 0.01 0.01 0.04 0.10 0.02 0.01 -0.02 0.10 N/A -0.04 0.00 N/A -0.05 0.03 Average scores by category are based on the average scores of all items within the category, weighted by their number of respondents. All items have the same importance as there are no additional weights applied. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the segment’s performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 4 36AUS – Airport Performance Most Important Service Quality Items & Satisfaction – Q3 2022 Top 5 Most Important Items (n=347) Satisfaction with these Service Items 1 2 3 4 5 Ease of going through security screening Ease of getting to the airport Base: (n=400) Waiting time at the security screening Comfort of waiting at the gate areas 20% Cleanliness 39% 32% 25% 17% (n=301) (n=269) (n=301) (n=346) (n=347) 4.26 4.21 4.20 3.83 3.88 The figure presents the proportion (%) of respondents who mentioned the item amongst the most important items based on their experience at your airport. Because respondents were able to select several items, the total of mentions may exceed 100%. The figure presents the average (out of 5-pt scale) for the items identified as important amongst all of the respondents who have rated the item. Base (n): Respondents providing a valid response Q11. Based on your experience at THIS airport, write the letters of your 3 most IMPORTANT items from question 10. © 2022 ACI Airport Performance – Q3 2022 5 37AUS – Trend Over Time Q3 2022 Compared to Previous Quarters © 2022 ACI Airport Performance – Q3 2022 38AUS – Trend Over Time Overall Satisfaction Score & Rank Participating Airports 244 260 271 148 Rank 159 161 l ) e a c s t p - 5 f o t u o ( e g a r e v A 4.21 4.14 4.14 ) 2 1 3 = n ( ) 1 6 2 = n ( ) 7 4 3 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Base (n): Respondents providing a valid response Q10. Based on your experience today, please rate THIS airport – Overall Satisfaction Rank is based on all ASQ participating airports for each quarter. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 7 39AUS – Trend Over Time Overall Satisfaction Score Distribution & Rank Participating Airports 244 260 271 148 Rank 159 161 79% 80% 78% 19% 3% 16% 3% 18% 4% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Poor (1) + Fair (2) Good (3) Very Good (4) + Excellent (5) Q10. Based on your experience today, please rate THIS airport – Overall Satisfaction Rank is based on all ASQ participating airports for each quarter. © 2022 ACI Airport Performance – Q3 2022 8 40AUS – Trend Over Time Satisfaction by Service Quality Items: Arrival at the Airport Ease of getting to the airport Signage to access terminal Value for money of the selected mode of transport (including parking facilities if it applies) 4.27 4.20 4.21 4.25 4.14 4.16 4.00 3.82 3.99 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 1 5 2 = n ( ) 6 8 1 = n ( ) 9 6 2 = n ( ) 8 4 2 = n ( ) 0 8 1 = n ( ) 7 6 2 = n ( ) 3 2 2 = n ( ) 7 6 1 = n ( ) 2 5 2 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 9 41AUS – Trend Over Time Satisfaction by Service Quality Items: Check-In Ease of finding check-in area Waiting time at check-in, including baggage drop if applicable Courtesy and helpfulness of staff in the check-in area 4.40 4.31 4.34 4.22 4.17 4.15 4.33 4.32 4.27 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 0 9 1 = n ( ) 1 5 1 = n ( ) 3 1 2 = n ( ) 6 8 1 = n ( ) 8 4 1 = n ( ) 9 0 2 = n ( ) 4 8 1 = n ( ) 8 4 1 = n ( ) 0 1 2 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 10 42AUS – Trend Over Time Satisfaction by Service Quality Items: Security Screening Ease of going through security screening Waiting time at the security screening Courtesy and helpfulness of security screening staff 4.13 4.17 4.26 4.02 4.10 4.20 4.19 4.25 4.24 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 8 6 2 = n ( ) 2 1 2 = n ( ) 1 0 3 = n ( ) 8 6 2 = n ( ) 1 1 2 = n ( ) 1 0 3 = n ( ) 7 6 2 = n ( ) 1 1 2 = n ( ) 8 9 2 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 11 43AUS – Trend Over Time Satisfaction by Service Quality Items: Shopping/Dining Restaurants/bars/ cafés Value for money of restaurant/bars/cafés Shops Value for money of shops Courtesy and helpfulness of shopping and dining staff 3.84 3.79 3.92 3.38 3.20 3.40 3.64 3.69 3.70 3.45 3.37 3.49 3.94 3.99 3.94 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 1 3 2 = n ( ) 5 9 1 = n ( ) 6 7 2 = n ( ) 7 2 2 = n ( ) 9 8 1 = n ( ) 6 7 2 = n ( ) 6 9 1 = n ( ) 3 6 1 = n ( ) 8 3 2 = n ( ) 1 9 1 = n ( ) 9 5 1 = n ( ) 4 3 2 = n ( ) 3 3 2 = n ( ) 2 9 1 = n ( ) 9 7 2 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 12 44AUS – Trend Over Time Satisfaction by Service Quality Items: Gate Areas Comfort of waiting at gate areas Availability of seats at gate areas l ) e a c s t p - 5 f o t u o ( e g a r e v A 3.95 3.80 3.83 3.94 3.72 3.89 ) 8 0 3 = n ( ) 1 6 2 = n ( ) 6 4 3 = n ( ) 9 0 3 = n ( ) 1 6 2 = n ( ) 6 4 3 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 13 45AUS – Trend Over Time Satisfaction by Service Quality Items: Throughout the Airport (1/2) Ease of finding way Availability of flight information (gate and time) Walking distance inside terminal Ease of making connection with other flights Courtesy and helpfulness of airport staff (information and maintenance staff) 4.21 4.20 4.21 4.19 4.15 4.14 4.01 4.07 4.08 4.05 4.14 4.15 4.22 4.23 4.26 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 1 1 3 = n ( ) 0 6 2 = n ( ) 7 4 3 = n ( ) 8 0 3 = n ( ) 5 5 2 = n ( ) 0 4 3 = n ( ) 1 1 3 = n ( ) 0 6 2 = n ( ) 6 4 3 = n ( ) 7 5 = n ( ) 1 7 = n ( ) 4 7 = n ( ) 2 8 2 = n ( ) 4 3 2 = n ( ) 8 1 3 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 14 46AUS – Trend Over Time Satisfaction by Service Quality Items: Throughout the Airport (2/2) Wi-Fi service quality Availability of charging stations Entertainment and leisure options Availability of washrooms/toilets Cleanliness of washrooms/toilets 3.86 3.91 3.83 3.68 3.66 3.71 3.82 3.73 3.84 4.07 4.12 4.00 3.86 3.84 3.80 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 2 3 2 = n ( ) 8 8 1 = n ( ) 1 5 2 = n ( ) 9 3 2 = n ( ) 0 9 1 = n ( ) 8 6 2 = n ( ) 2 1 2 = n ( ) 7 6 1 = n ( ) 9 4 2 = n ( ) 3 9 2 = n ( ) 0 5 2 = n ( ) 0 3 3 = n ( ) 0 9 2 = n ( ) 4 4 2 = n ( ) 9 1 3 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 15 47AUS – Trend Over Time Satisfaction by Service Quality Items: Airport Atmosphere Health safety Cleanliness Ambience 4.14 4.10 4.03 4.04 3.98 3.88 4.07 3.95 3.99 l ) e a c s t p - 5 f o t u o ( e g a r e v A ) 1 1 3 = n ( ) 9 5 2 = n ( ) 5 4 3 = n ( ) 2 1 3 = n ( ) 1 6 2 = n ( ) 7 4 3 = n ( ) 9 0 3 = n ( ) 0 6 2 = n ( ) 3 4 3 = n ( Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Base (n): Respondents providing a valid response. Q10. Based on your experience today, please rate THIS airport on each service item. Note: The green and red values indicate that the performance is higher or lower at a statistically significant level (95%) compared to previous quarter. © 2022 ACI Airport Performance – Q3 2022 16 48© 2022 ACI © 2022 ACI Airport Performance – Q3 2022 49 AIRPORT ADVISORY COMMISSION ITEM 8 – STAFF BRIEFINGS Discussion of the AUS Advertising Request for Proposal, presented by Mookie Patel, Chief Business and Finance Officer 50AUS Advertising RFP Discussion 0 Mookie Patel November 8, 2022 51Airport Advertising Program Airport Advertising Programs are a traditional source of Non-Airline Revenue for airports throughout the country. The Airport Advertising program is comprised of indoor terminal advertising in the Barbara Jordan Terminal and outdoor advertising in the parking garage and adjacent spaces. Goals for the AUS Advertising Program: • Create a positive travel experience by utilizing innovative, eye-catching and dynamic displays with creative artwork • Create an attractive and inviting environment that amplifies a sense of place for the traveling public • Provide a high level of customer service aligned with the City’s values • Create a sense of pride in the community by reflecting it in the advertising program • Showcase AUS as a Partner in the local community • Create opportunities that encourage Airport Concessions Disadvantaged Business Enterprises (“ACDBE”) in all aspects of the Concession Program Why is it Important? • Expected to produce over $50 million in revenue over the life of the contract • Partner will enhance the terminal experience and drive value to the Airport and Community by showcasing a mix of local, national and international brands, using the most up to date and engaging technologies • Partner will help design the new advertising program for the new terminal 1 52Advertising Policies and Guidelines • Displays, equipment and other advertising materials provided by the Concessionaire will be suitable and of a proper grade and quality, and to the satisfaction of the Airport. They should be maintained and kept neat and clean at all times. • Displays and equipment should meet ADA standards as prescribed by the Airport • Advertising creatives should be formulated and designed to be suitable for the airport setting in respect all age groups, genders, cultures, business partners, government agencies, city, state and federal laws. • Advertising creatives for larger displays like spectaculars or large LED displays must respect the aesthetics and working environment in the terminal through muted backgrounds and softer messaging. • Advertising creatives that offer entertainment, or that support, or foster objectives promoted from time to time at the Airport (such as, for example, a “sense of place”) are encouraged. • The Advertising Program will be in line with the City’s Sign ordinance and any exterior signage will be reviewed by the Law Department to ensure that the ads are in compliance with City regulations. 2 53RFP Timeline & Selection • Pre Issuance Prep and Guidance with SMBR began February 10, 2022 • Program Compliance Coordinator from Purchasing added to the team on March 14, 2022 • RFP Issuance on April 21, 2022 • Pre Proposal Meeting and Tour of the Facility held on April 28, 2022 • For those unable to attend the previous Tour, a Second Tour was held on May 13, 2022 • Proposals were due July 14, 2022 • Four proposals were submitted for review. • Evaluation and Scoring Meeting took place on August 11, 2022 3 54Airport Advertising Proposed Program • 34 digital displays vs 36 print displays; 49% of locations/assets digital vs 51% locations/assets as printed media. The current program has 31 digital displays vs 26 print displays; 54% of locations/assets digital vs 46% locations/assets as printed media. • All Clear Channel advertising displays’ have independent power runs to each display and power is drawn from an independent circuit which is not connected to any of the airport’s critical circuits or functions. • Clear Channel will use industry-leading vendors to obtain the lowest power consumption commercial grade assets available. Direct View LED products (DVLED) with auto-dimming ambient light sensors set at certain percentage of brightness of the terminal environment; monitors can remotely adjust to AUS preference through a digital Content Management System (CMS). Additionally, printed lit assets use 40 to 50 percent less energy and last 2.5 times longer than traditional light boxes. • All Clear Channel digital signage adheres with ADA compliance for motion graphics in terms of distance clearance from the beginning and end of moving walkways (20 feet), as well as any leading edge / depth compliance for protrusion into pedestrian walkways (no more than 4” depth). Digital content restrictions are not applicable for advertising (only wayfinding & directional is included in these ADA requirements); however our client advertising specifications encourage light to moderate transitions for digital ads and the brightness of the displays 4 55Airport Advertising Proposed Program – ACDBE Partners/Requirements • The ACDBE participation goal was set at 2% of the amount of gross receipts generated from the actual performance plus eligible amounts expended by the operator for the procurement of goods and services from ACDBEs. • Over the 10 year contract the projected amount to ACDBEs could be between $2,058,000-$2,234,000 based on forecasted sales • Clear Channel will continue to use two of their current ACDBE partners. • Gates Aviation Consulting Services who will serve as the local General Manager, support the full-time airport manager and provide sales and compliance support • Chivas Engineering & Consulting will provide general and electrical contractor services, maintenance and operations support • A new third partner will be TES Concessions, Inc., to add additional sales and operations support as well as quality control for weekly on site inspections 5 56Business Terms *As Outlined in the RFP  Term: 9 years, plus 1 one year option, in full or in part, at the discretion of the Airport.  Fee: Minimum Annual Guaranteed Concession Fee ("MAGCF") or Percentage Rent. – MAGCF for the Initial Contract Year of no less than $1,750,000. – MAGCF for subsequent Contract Years shall be the greater of the Initial Contract Year’s MAGCF or 85% of Concession Fees payable to the City in the Contract Year immediately preceding. – In no event shall the MAGCF fall below that set for the Initial Contract Year. – Percentage Rent shall be at a minimum of 60% of annual Gross Receipts in years 1 – 4 and 65% in years 5 – 9.  Investment: Capital investment of $2.5 Million over the life of the contract, of which two thirds (66%) to be expended in the first year of the contract. The remaining capital investment must be expended by the end of year 5 to include a mid-term refurbishment.  Marketing Funds: Annual 0.5% Concession Marketing Funds fee 6 57Business Terms * As Proposed by Clear Channel  The following terms were offered by Clear Channel in their proposal.  Term: 9 years, plus 1 one year option, in full or in part, at the discretion of the Airport.  Fee: Minimum Annual Guaranteed Concession Fee ("MAGCF") or Percentage Rent. – MAGCF for the Initial Contract Year of no less than $3,720,000. – Percentage Rent shall be 65% of annual Gross Receipts in years 1 – 4 and 66.25% in years 5 – 9.  Investment: Capital investment of $6.3-8.3 Million over the life of the contract – Initial Capital Investment of $4.2 million – $2 million in capital reserves for proper advertising as Journey with AUS progresses – $2.1 million in mid-term capital refurbishment 7 58Airport Advertising Proposed Program – Community Benefits • Clear Channel reserved funds to off-set the carbon impact of up to 50 annual round trip flights between their corporate headquarters and AUS through the Good Traveler Program • Clear Channel through TreeFolks.org, will plant one new grove of trees in and around Austin each year, offer a scholarship donation of $1,000.00, and pledge to promote #KeepAustinRooted’s awareness campaign to combat the loss of tree canopy via their digital PSA filler program at AUS • Through a collaboration with Hope Gallery, Clear Channel will feature art exhibits within their digital program and will be promoting the #1 recycling project in Austin as their sculptures utilize recycled materials. 8 59Proposed Concepts * These are only proposed and have not been agreed upon 9 60Questions? 10 61