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REGULAR MEETING of the AIRPORT ADVIS ORY COMMISS ION (AAC) June 12, 2024 3:00 PM 6310 WILHELMINA DELCO DR., ROOM 1405 AUSTIN, TEXAS 78752 Some members of the Commission may be participating via videoconference. Livestream of the meeting will be available at ATXN1 https://www.austintexas.gov/watch-atxn-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 for general communication and for specific agenda items will be allowed in-person or remotely via telephone. In person registration is available for speakers who sign up at the meeting location prior to the meeting being called to order. Registration to speak remotely is available for speakers who have provided an email to Ammie Calderon at ammie.calderon@flyaustin.com, no later than Noon of the day before the meeting. CURRENT BOARD MEMBERS Wendy Price Todd, Chair Bakari Brock, Vice-Chair Patrick Rose, Secretary Raymond Young Jeremy Hendricks Jonathan Coon Chad Ennis Scott Madole Doyle Valdez Fang Fang Jeff Eller AGENDA CALL TO ORDER PUBLIC COMMUNICATION: GENERAL Public communication for items not on the agenda. The first 5 registered speakers will each be allowed a three minute allotment to address the Airport Advisory Commission on an item that is not posted on the agenda. Please see further instructions on registration above. Public communication for items included in the agenda as a Discussion/Action item. Registered speakers will each be allowed a three minute allotment to address the Airport Advisory 1 1Commission on an item that is posted as a Discussion/Action item, but may not address the Airport Advisory Commission on an item posted as a Briefing. Please see further instructions on registration above. APPROVAL OF MINUTES 1. Approve the minutes of the AAC regular meeting on May 8, 2024 STAFF BRIEFINGS 2. April 2024 Financial Results presented by Rajeev Thomas, Chief Financial Officer 3. Air Service Update provided by Jamy Kazanoff, AUS Air Service Development 4. Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects Update provided by Lyn Estabrook, Deputy Chief Development Officer 5. Update on AUS virtual ramp control implementation provided by Rick Belliotti, Acting Chief Experience and Performance Officer DISCUSSION/ACTION ITEMS 6. Approve an ordinance amending the Fiscal Year 2023-2024 Aviation Department Operating Budget Airport Operating Fund (Ordinance No. 20230818-008) to recognize additional revenue in the amount of $10,082,451 and increase appropriations in the amount of $10,082,451 to accommodate adjustments implemented because of the Aviation staffing market study, reflect expenses resulting from the greatly improved vacancy rate that outperformed expectations, wage and vacancy adjustments associated with contractual agreements, and increased commodity purchase needs. 7. Approve a resolution authorizing acceptance of grants from the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to the City of Austin, Department of Aviation, for Austin-Bergstrom International Airport for Fiscal Years 2025-2027 in an amount not to exceed $500,000,000. 8. Authorize negotiation and execution of a contract for a technology service solution including support with Creative Enterprise Solutions, LLC d/b/a Beyond20, for up to five years for a total contract amount not to exceed $1,200,000. [Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program). For the services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. 2 2DISCUSSION ITEMS 9. Discussion on the current and future scope of the Airport Advisory Commission Acceleration and Opportunity Working Groups. 10. Discussion on the Airport Advisory Commission Annual Internal Review covering the period of July 1, 2023 thru June 30, 2024, and upcoming year’s goals. 11. Review City Council action at the May 30, 2024 meeting – [Item 05] Authorize negotiation and execution of multiple project-specific reimbursable agreements with the Federal Aviation Administration (FAA) to reimburse the FAA for its costs to perform services related to construction oversight at Austin-Bergstrom International Airport for the Airport Expansion and Development Program in a cumulative amount not to exceed $5,000,000. Approved on consent. 12. Review City Council action at the May 30, 2024 meeting – [Item 34] Authorize negotiation and execution of a contract for air service development and retention services with Campbell-Hill Aviation Group LLC, for up to five years for a total contract amount not to exceed $1,827,000. [Note: This contract will be awarded in compliance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program) with 4.98% MBE and 1.00% WBE participation]. Approved on consent. 13. Review City Council action at the May 30, 2024 meeting – [Item 62] Authorize negotiation and execution of a contract for pre-construction and construction services for the West Garage Lot B project with Austin Commercial, L.P., in an amount not to exceed $250,000,000. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 13.95% MBE and 6.34% WBE participation]. Approved on consent. 14. Review City Council action at the May 30, 2024 meeting – [Item 66] Authorize negotiation and execution of a professional services contract for engineering design services for the Airport Expansion and Development Program Utility Infrastructure Campus Wide project with HDR Engineering, Inc., in an amount not to exceed $10,000,000. [Note: This contract will be awarded in compliance with the requirements of 49 CFR Part 26 (Disadvantaged Business Enterprise Program) and City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 20.00% DBE participation]. Approved on consent. 15. Review City Council action at the May 30, 2024 meeting – [Item 68] Authorize negotiation and execution of a professional services contract for engineering and architectural services for West Garage - Lot B project with PGAL, Inc. in an amount not to exceed $15,000,000. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 22.80% MBE and 15.20% WBE participation]. Approved on consent. FUTURE AGENDA ITEMS 3 3NEXT REGULAR MEETING The next regular meeting of the AAC is currently scheduled for Wednesday, July 10, 2024. 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 Jason Alexander at jason.alexander@flyaustin.com. 4 4AIRPORT ADVISORY COMMISSION ITEM 1 - APPROVAL OF MINUTES May 8, 2024 Regular Meeting 5AIRPORT ADVISORY COMMISSION (AAC) REGULAR MEETING MINUTES May 8, 2024 The Airport Advisory Commission convened in a regular meeting on May 8, 2024 at 6310 Wilhelmina Delco Dr. Room 1405 Austin, Texas. Wendy Price Todd called the regular meeting to order at 3:01 p.m. Commissioners in Attendance: Wendy Price Todd, Chair Bakari Brock, Vice-Chair Patrick Rose, Secretary Jeremy Hendricks Raymond Young Scott Madole Jeff Eller Doyle Valdez Commissioners in Attendance Remotely: Jonathan Coon Fang Fang Chad Ennis PUBLIC COMMUNICATION: GENERAL Jonathan Appel – Eden Energy Solutions Stanley Huntsman – Eden Energy Solutions APPROVAL OF MINUTES 1. Approve the minutes of the regular AAC meeting on April 10, 2024. A motion to approve was made by Commissioner Brock; Commissioner Hendricks seconded. Commissioner Todd abstained. Motion passed on a 10-0-1-0 vote. 6STAFF BRIEFINGS 2. March 2024 Financial Results presented by Rajeev Thomas, Chief Financial Officer 3. Air Service Update provided by Jamy Kazanoff, AUS Air Service Development 4. Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects Update provided by Lyn Estabrook, Deputy Chief Development Officer 5. Update on recent Media Events at AUS presented by Sam Haynes, Deputy Chief of Communications and Marketing DISCUSSION/ACTION ITEMS 6. Nomination and election of Airport Advisory Commission Secretary A motion to nominate and approve Patrick Rose was made by Commissioner Brock; Commissioner Valdez seconded. Motion passed on a 11-0-0-0 vote. 7. Nomination and election of Airport Advisory Commission Vice-Chair A motion to nominate and approve Bakari Brock was made by Commissioner Hendricks; Commissioner Eller seconded. Motion passed on a 11-0-0-0 vote. 8. Nomination and election of Airport Advisory Commission Chair A motion to nominate and approve Wendy Price Todd was made by Commissioner Hendricks; Commissioner Rose seconded. Commissioner Todd abstained. Motion passed on a 10-0-1-0 vote. 9. Authorize negotiation and execution of a contract for design services for the Airport Expansion and Development Program Utility Infrastructure Campus Wide Project with HDR Engineering, Inc., in an amount not to exceed $10,000,000. Note: This contract will be awarded in compliance with the requirements of 49 CFR Part 26 (Disadvantaged Business Enterprise Program) and City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) by meeting the goals with 5.75% DBE participation. A motion to approve was made by Commissioner Young; Commissioner Rose seconded. Motion passed on a 11-0-0-0 vote. 710. Authorize negotiation and execution of a contract for engineering and architectural services for West Garage – Lot B project with PGAL, Inc. in an amount not to exceed $15,000,000. [Note: This contract will be awarded in compliance with City Code Chapter 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program) by meeting the goals with 22.80% MBE and 2 3 15.20% WBE participation. A motion to approve was made by Commissioner Hendricks; Commissioner Valdez seconded. Motion passed on a 11-0-0-0 vote. 11. Authorize negotiation and execution of a contract for preconstruction and construction services for the West Garage Lot B project with Austin Commercial, L.P., in an amount not to exceed $250,000,000. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 13.95% MBE and 6.34% WBE participation]. A motion to approve was made by Commissioner Brock; Commissioner Young seconded. Motion passed on a 11-0-0-0 vote. 12. Authorize negotiation and execution of a contract for air service development and retention services with Campbell-Hill Aviation Group LLC, for up to five years for a total contract amount not to exceed $1,827,000. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2- 9B (Minority- Owned and Women-Owned Business Enterprise Procurement Program) and subcontractor goals were applied to the solicitation. The subcontracting goals were met, and the resulting contract will include 4.98% MBE and 1.00% WBE participation]. A motion to approve was made by Commissioner Hendricks; Commissioner Brock seconded. Motion passed on a 11-0-0-0 vote. 13. Authorize funding for multiple project-specific Reimbursable Agreements with the Federal Aviation Administration (FAA) for the reimbursement of FAA costs for additional or expanded services outside of the FAA’s normal operating duties related to construction oversight at Austin-Bergstrom International Airport, for five years in an amount not to exceed $5,000,000. A motion to approve was made by Commissioner Brock; Commissioner Hendricks seconded. Motion passed on a 11-0-0-0 vote. 8DISCUSSION ITEMS 14. Review City Council action at the April 18, 2024 meeting – [Item 7] Authorize negotiation and execution of an amended and restated fixed base operator lease and development agreement with Austin FBO LLC, for approximately 40 acres of land at Austin-Bergstrom International Airport to modify and add to the leased premises, provide for the relocation of the water quality and water detention pond system, and add 10 years to the term. Approved on consent. 15. Review City Council action at the April 18, 2024 meeting – [Item 28] Approve a resolution finding the use of the Construction Manager-at-Risk method of contracting, as authorized by F, Chapter 2269 of the Texas Government Code, is the project delivery method that provides the best value to the City for the Arrivals and Departures Hall project to allow for the future construction of Concourse B as part of the Airport Expansion and Development Program. [Note: MBE/WBE goals will be established prior to issuance of this solicitation]. Approved on consent. 16. Review City Council action at the April 18, 2024 meeting – [Item 32] Authorize negotiation and execution of a design-build contract for design and construction services for the Austin Bergstrom International Airport Central Utility Plant Relocation project with JE Dunn Construction Company, in an amount not to exceed $162,000,000. [Note: This contract will be awarded in compliance with 49 CFR Part 26 (Disadvantaged Business Enterprise Program and City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) by meeting the goals with 18.90% DBE participation]. Approved on consent. 17. Review City Council action at the May 2, 2024 meeting – [Item 8] Approve a resolution appointing Rajeev Thomas to the Austin-Bergstrom Landhost Enterprises, Inc. board of directors and amending the Austin-Bergstrom Landhost Enterprises, Inc. articles of incorporation and bylaws. Approved on consent. 18. Review City Council action at the May 2, 2024 meeting – [Item 35] Authorize negotiation and execution of an amendment to a contract for continued parking operations management services for Austin-Bergstrom International Airport with SP Plus Corporation d/b/a SP+, to increase the amount by $25,000,000 and to extend the term by up to 37 months, for a revised total contract amount not to exceed $115,639,880. [Note: This contract was awarded in compliance with City Code Chapter 2- 9C (Minority- Owned and Women-Owned Business Enterprise Procurement Program) with 0.30% MBE and 6.70% WBE participation]. Approved on consent. 9FUTURE AGENDA ITEMS Commissioner Hendricks requested the Commission have an opportunity to learn more about the Airport’s role in the Infrastructure Academy, and would like an update on the City’s Construction Training Program which was launched in 2019. NEXT REGULAR MEETING The next regular meeting of the AAC is currently scheduled for Wednesday, June 12, 2024. ADJOURNMENT Wendy Price Todd adjourned the meeting at 4:02 p.m. without objection. 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. 10AIRPORT ADVISORY COMMISSION ITEM 2 – STAFF BRIEFINGS April 2024 Financial Results presented by Rajeev Thomas, Airport Chief Financial Officer. 11TO: Airport Advisory Commissioners MEMORANDUM FROM: Rajeev Thomas, Chief Financial Officer, Aviation Department SUBJECT: Austin-Bergstrom International Airport (AUS) Update DATE: June 12, 2024 April 2024 Financial Results Passenger traffic totaled 1,875,980 in April 2024, an increase of 1.7% compared to April 2023. The increase is driven in part by the high volume of travelers visiting to observe the solar eclipse. Average daily departures decreased from 262 in April 2023 to 257 in April 2024, a decrease of 5 daily departures or 1.7% resulting primarily from changes in service offered by air carriers. Table #1 Enplanements Landing Weights Cargo Tonnage Operating Revenue Airport OPEX Total Requirements FY 2024 April FY 2023 April Variance Fav (Unfav) FY 2024 YTD FY 2023 YTD Variance YTD Fav (Unfav) 949,386 934,029 1.6% 6,245,716 6,165,972 1,137,450,764 1,127,819,520 0.9% 7,798,593,786 7,746,236,179 13,218 11,346 16.5% 87,047 87,436 1.3% 0.7% (0.4%) $26,896,310 $22,722,028 $4,174,281 $180,327,084 $155,023,167 $25,303,917 $11,809,655 $9,681,893 ($2,127,763) $86,735,560 $67,550,234 ($19,185,326) $18,596,037 $15,591,270 ($3,004,767) $134,393,936 $108,924,117 ($25,469,819) Net Income Before Federal Relief $8,300,272 $7,130,758 $1,169,514 $45,933,148 $46,099,050 ($165,902) Federal Relief Reimbursement $0 $2,792,492 ($2,792,492) $0 $32,645,734 ($32,645,734) Net Income After Federal Relief $8,300,272 $9,923,251 ($1,622,978) $45,933,148 $78,744,784 ($32,811,636) Table #1 illustrates April 2024’s enplanements totaled 949,386, an increase of 1.6% compared to April 2023. Landing weights totaled 1.1 billion pounds in April 2024 representing an increase of 0.9% compared to April 2023. Cargo volume totaled 13,218 tons in April 2024, an increase of 16.5% compared to April 2023. April 2024 operating revenue totals $26.9M, an increase of 18.4% or $4.2M compared to April 2023. The increase in operating revenue primarily results from updated airline rates for FY24, changes to the parking rate structure from prior year, and the impact of passenger traffic related to the solar eclipse. April 2024 operating revenue is composed of 45.5% airline revenue, 52.5% non-airline revenue, and 2.0% interest income. Airport operating expenses totaled $11.8M for the month, an increase of 22.0% or $2.1M compared to April 2023. The increase in operating expenses results from higher personnel costs from increased headcount and wage adjustments, costs associated with APD and ARFF units, and contractual costs including parking services and baggage handling system maintenance. AUS reported an $8.3M surplus in April 2024, an increase of $1.2M or 16.4% compared to April 2023. 12Fiscal Year 2024 Financial Results FY2024 Year to Date (YTD) Operating Revenue totals $180.3M compared to $155.0M in FY2023, a 16.3% increase. Airport Operating Expenses totaled $86.7M YTD in FY2024 compared to $67.6M in FY2023, a 28.4% increase. Net income before federal relief funding totals $45.9M YTD in FY2024 compared to $46.1M in FY2023, a 0.4% decrease. Table #2 Approved Budget - Seasonalized CYE - Seasonalized FY 2024 FY 2024 FY 2024 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 Airport OPEX $162,778,511 $178,727,529 $180,327,084 $17,548,572 $82,414,069 $86,878,154 $86,735,560 ($4,321,491) Total Requirements $130,043,793 $135,245,683 $134,393,936 ($4,350,143) Net Income $32,734,719 $43,481,847 $45,933,148 $13,198,429 10.8% (5.2%) (3.3%) 40.3% $1,599,554 $142,594 $851,747 $2,451,301 0.9% 0.2% 0.6% 5.6% Through April 2024, AUS delivered favorable YTD financial performance compared to FY2024 budget and current year estimate (CYE) on a seasonalized basis due to increased operating revenues. As presented in Table #2, FY2024 revenues exceed budgeted revenues by 10.8% or $17.5M and exceed CYE by 0.9% or $1.6M. Airport operating expenses are 5.2% or $4.3M above seasonalized budgeted expenses due to higher personnel costs from faster than anticipated filling of vacant positions, wage adjustments for APD and ARFF personnel, and increased parking operations cost. Before federal relief, AUS reports net income of $45.9M, which exceeds the seasonalized budget estimate by 40.3% or $13.2M and exceeds CYE by 5.6% or $2.5M. Attachments: April 2024 - AAC Financial Report 131 15 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 TOTAL OPERATING EXPENSES Debt Service 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 Additional Retirement Contribution Operating Reserve CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Compensation Adjustment TOTAL OTHER REQUIREMENTS CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 7 Month(s) ended April 30, 2024 FY 2024 Budget Budget Seasonalized 7 month(s) FY 2024 CYE CYE Seasonalized 7 month(s) Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) Variance Fav (Unfav) % Variance Fav (Unfav) Y-T-D to Budget Y-T-D to CYE 2,491,042 289,208,645 1,453,108 162,778,511 5,000,000 317,033,111 2,916,667 178,727,529 2,962,350 180,327,084 47,227,041 91,892,750 139,119,791 67,567,206 8,940,600 20,911,887 16,357,880 6,920,612 4,906,850 21,992,777 147,597,812 85,141,445 8,161,976 46,218,424 14,238,156 153,760,001 5,414,978 7,077,844 10,034,715 14,366,313 17,724,531 12,016,000 66,634,383 619,900 6,654,530 2,154,703 202,049 3,773,716 4,670,043 527,737 457,471 1,268,713 16,359 20,345,221 27,159,694 53,818,343 80,978,037 36,134,577 4,592,224 12,476,681 8,818,246 3,645,031 3,140,603 11,540,006 80,347,367 46,170,681 4,238,794 24,037,013 7,967,581 82,414,069 3,158,291 4,128,743 5,853,584 8,384,662 10,339,010 3,931,122 35,795,411 361,608 3,881,809 1,256,910 117,862 2,177,144 2,724,192 307,847 266,858 740,083 0 11,834,312 53,744,580 94,770,054 148,514,634 75,170,413 10,977,853 21,309,473 19,546,350 7,250,762 4,908,235 24,355,391 163,518,477 92,972,047 7,264,214 44,227,387 16,606,860 161,070,508 5,414,978 7,077,844 10,034,715 14,366,313 17,724,531 12,016,000 66,634,383 619,900 6,654,530 2,154,703 202,049 3,773,716 5,934,852 527,737 457,471 1,268,713 0 21,593,671 29,736,319 54,299,334 84,035,653 40,678,872 6,120,730 13,130,503 11,204,729 3,818,721 3,414,014 13,407,642 91,775,210 51,283,204 3,559,232 22,390,084 9,645,634 86,878,154 3,158,291 4,128,743 5,853,584 8,384,662 10,339,010 3,931,122 35,795,411 361,608 3,881,809 1,256,910 117,862 2,177,144 3,461,997 307,847 266,858 740,083 0 12,572,117 29,939,362 54,433,500 84,372,862 40,783,109 6,272,590 13,611,015 11,476,094 3,927,571 3,420,288 13,501,206 92,991,873 51,379,194 3,467,704 22,226,098 9,662,565 86,735,560 3,158,291 4,128,743 5,853,584 8,384,662 10,339,010 3,931,122 35,795,411 361,608 3,881,809 1,256,910 117,862 2,177,144 2,752,844 307,847 266,858 740,083 0 11,862,964 2,779,668 615,157 3,394,825 4,648,532 1,680,366 1,134,335 2,657,848 282,541 279,685 1,961,200 12,644,506 1,509,242 17,548,572 (5,208,513) 771,090 1,810,915 (1,694,983) (4,321,491) 0 0 0 0 0 0 0 0 0 0 0 0 (28,652) 0 0 0 0 (28,652) 10.2% 1.1% 4.2% 12.9% 36.6% 9.1% 30.1% 7.8% 8.9% 17.0% 15.7% 103.9% 10.8% (11.3%) 18.2% 7.5% (21.3%) (5.2%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (1.1%) 0.0% 0.0% 0.0% N/A (0.2%) 203,043 134,166 337,209 104,237 151,860 480,512 271,365 108,851 6,274 93,564 1,216,663 45,683 1,599,554 (95,989) 91,528 163,986 (16,931) 142,594 0 0 0 0 0 0 0 0 0 0 0 0 709,153 0 0 0 0 709,153 0.7% 0.2% 0.4% 0.3% 2.5% 3.7% 2.4% 2.9% 0.2% 0.7% 1.3% 1.6% 0.9% (0.2%) 2.6% 0.7% (0.2%) 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 20.5% 0.0% 0.0% 0.0% N/A 5.6% TOTAL REQUIREMENTS 240,739,605 130,043,793 249,298,562 135,245,683 134,393,936 (4,350,143) (3.3%) 851,747 0.6% EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS Note: Columns may not add to totals shown because of rounding 48,469,040 32,734,719 67,734,549 43,481,847 45,933,148 13,198,429 40.3% 2,451,301 5.6% 14CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR This month - This Year vs. Last Year FY24 (Apr 24) vs FY23 (Apr 23) Fiscal YTD - This Year vs. Last Year FY24 (Oct 23 - Apr 24) vs FY23 (Oct 22 - Apr 23) FY24 Apr-24 FY23 Apr-23 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY24 YTD Apr-24 FY23 YTD Apr-23 Fav (Unfav) $ Variance Fav (Unfav) % Variance 4,384,451 7,860,183 12,244,634 3,344,115 6,005,767 9,349,882 5,755,747 980,249 2,633,026 1,762,721 631,548 400,108 1,960,966 14,124,365 5,209,513 884,799 2,240,720 1,616,059 634,502 411,343 1,905,824 12,902,761 527,310 26,896,310 469,385 22,722,028 6,986,820 440,923 3,093,479 1,288,434 11,809,655 451,338 589,820 836,226 1,196,330 1,477,104 561,589 5,112,407 51,658 554,544 179,559 16,837 290,286 393,263 43,978 38,123 105,726 1,673,974 5,329,895 570,784 2,645,060 1,136,154 9,681,893 450,623 589,820 836,226 1,203,345 1,476,625 9,694 4,566,334 38,955 555,489 144,843 15,996 0 379,949 38,755 37,730 131,326 1,343,043 1,040,335 1,854,416 2,894,752 546,234 95,450 392,306 146,662 (2,953) (11,235) 55,142 1,221,604 57,925 4,174,281 31.1% 30.9% 31.0% 10.5% 10.8% 17.5% 9.1% (0.5%) (2.7%) 2.9% 9.5% 12.3% 18.4% (1,656,925) 129,861 (448,419) (152,280) (2,127,763) (31.1%) 22.8% (17.0%) (13.4%) (22.0%) (715) 0 0 7,015 (479) (551,894) (546,073) (12,704) 945 (34,715) (842) (290,286) (13,314) (5,223) (392) 25,600 (330,931) (0.2%) 0.0% 0.0% 0.6% (0.0%) (5693.0%) (12.0%) (32.6%) 0.2% (24.0%) (5.3%) N/A (3.5%) (13.5%) (1.0%) 19.5% (24.6%) 2,962,350 180,327,084 2,004,533 155,023,167 957,817 25,303,917 29,939,362 54,433,500 84,372,862 40,783,109 6,272,590 13,611,015 11,476,094 3,927,571 3,420,288 13,501,206 92,991,873 51,379,194 3,467,704 22,226,098 9,662,565 86,735,560 3,158,291 4,128,743 5,853,584 8,384,662 10,339,010 3,931,122 35,795,411 361,608 3,881,809 1,256,910 117,862 2,177,144 2,752,844 307,847 266,858 740,083 11,862,964 26,318,248 41,952,326 68,270,574 36,377,758 5,693,559 12,901,364 10,396,199 4,161,180 3,156,302 12,061,699 84,748,061 38,451,796 3,754,443 17,721,551 7,622,444 67,550,234 3,154,882 4,128,743 5,853,584 8,432,285 10,335,469 67,618 31,972,581 272,682 3,888,422 1,013,903 111,969 0 2,659,643 271,286 264,112 919,285 9,401,302 3,621,114 12,481,174 16,102,288 4,405,350 579,031 709,652 1,079,895 (233,609) 263,986 1,439,507 8,243,812 13.8% 29.8% 23.6% 12.1% 10.2% 5.5% 10.4% (5.6%) 8.4% 11.9% 9.7% 47.8% 16.3% (12,927,397) 286,739 (4,504,546) (2,040,121) (19,185,326) (33.6%) 7.6% (25.4%) (26.8%) (28.4%) (3,408) 0 0 47,623 (3,542) (3,863,504) (3,822,830) (88,926) 6,613 (243,007) (5,893) (2,177,144) (93,201) (36,561) (2,746) 179,202 (2,461,663) (0.1%) 0.0% 0.0% 0.6% (0.0%) (5713.7%) (12.0%) (32.6%) 0.2% (24.0%) (5.3%) N/A (3.5%) (13.5%) (1.0%) 19.5% (26.2%) 8,300,272 7,130,758 1,169,514 16.4% 45,933,148 46,099,050 (165,902) (0.4%) 0 0 0 (870,479) (1,922,013) (2,792,492) (870,479) (1,922,013) (2,792,492) (100.0%) (100.0%) (100.0%) 0 0 0 (6,086,728) (26,559,006) (32,645,734) (6,086,728) (26,559,006) (32,645,734) (100.0%) (100.0%) (100.0%) Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue Non-Airline Revenue Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees Total Non-Airline Revenue Interest Income Total Operating Revenue Operating Requirements Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services Total Operating Expense Debt Service 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 Additional Retirement Contribution Operating Reserve 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 18,596,037 15,591,270 (3,004,767) (19.3%) 134,393,936 108,924,117 (25,469,819) (23.4%) TOTAL SURPLUS (DEFICIT) AFTER FEDERAL RELIEF 8,300,272 9,923,251 (1,622,978) (16.4%) $ 45,933,148 $ 78,744,784 $ (32,811,636) (41.7%) Note: Columns may not add to totals shown because of rounding 15AIRPORT ADVISORY COMMISSION ITEM 3 – STAFF BRIEFINGS Air Service Update presented by Jamy Kazanoff, Air Service Development. 16June 2024 Air Service Snapshot AUS monthly seat comparisons, January-December ‘24, compared to 2019 (pre-Covid) (chart one) and compared to previous year (chart two): Source: Cirium schedule data. Highlights of recent air service announcements/developments include:  Aeromexico upgauged MEX service from 99-seat E190 to 160-seat B737-800 for June 21– Aug. 19 ’24, also Oct. 21-22 ’24 and Dec. 20 ’24 – Jan. 6 ’25  Air Canada resumed service to YVR on May 1 ’24 & will started new service to YUL eff. May 3 ’24; reduced YVR from 4/Wk to 3/Wk for June-August  Alaska suspended SJC after April 11 ‘24  Allegiant new 2/Wk service to EUG started May 31 ’24  American summary of 2024 service pulldown: 17o Discontinued ABQ, BZN, CVG, CZM, EGE, ELP, IAD, JAX, LIR, MBJ, MCI, MEM, NAS, OKC, PUJ, PVR, RSW, SMF, TPA &TUL o RNO – resumed May 6 o Added Saturday only service to ECP and VPS for June 8 – August 3 o Added 3 roundtrips to AGS in April for the Masters and 2 roundtrips to SDF in May for the Kentucky Derby November  Copa upgauged PTY from 737-800 (154-166 seats) to MAX9 with lie flat seats (174 seats) for May-  Delta started BNA 3x MAF 3x & MFE 3x on April 22; added AGS roundtrips on April 10 & 15 for the Masters golf tournament; added service for college football games for the following weekends: Gainesville (GNV) & TPA on Nov. 9, XNA on Nov. 16 & Lexington (LEX) on Nov. 23  Frontier started nonstop service to CLE 3/Wk on May 16  Hawaiian added HNL 4th weekly flight for May 25 – Aug 3   KLM used the 318-seat B787-10 for April 1 – June 1 and will use the B777-200ER (288 seats) from June JetBlue discontinued FLL after April 30   3 – October 26; the 275-seat B787-9 returns on October 28 Lufthansa brought back the B787-9 (294 seat) starting Jan. 15 ’24 and increased service to 5/Wk on June 5 ’24 for the Summer season Southwest Sat. only SJU service started Mar 9 ’24 and loaded through Jan. 5 ‘25; SDF flights on May 2 & 5 for Kentucky Derby Spirit suspended LAX for December ’23 forward; EWR also suspended for Sept 4 – Oct 8   VivaAerobus started new MTY service eff. Mar. 22 ‘24  WestJet resumed YYC service on Apr 28 ‘24  June ‘24 v June ‘23 (down 1 destination based on monthly schedules): o + destinations: CLE, EUG, MFE, PTY, SJU, YUL o – destinations: BOI, JAX, LIR, MBJ, MEM, NAS, PUJ New AUS Nonstop Service for 2024: Source: Cirium schedule data. 18June air service comparison: Source: Cirium schedule data. Current AUS air service: Source: Cirium schedule data. 19June 2024 v. 2023 carrier seat share comparison: Source: Cirium schedule data. AUS Connecting Traffic Trends: Based on U.S. DOT O&D Passenger Survey, Cirium FM Traffic and ABIA statistics: 14.7% of AUS passengers in Q4 2023 were connecting between flights at the Airport. One-Way Domestic Fares for U.S. Medium & Large Hub Airports (Source: U.S. DOT, O&D Survey, CY 2023): 20Top 10 AUS Domestic Markets Without Nonstop Service (Source: CY2023 DOT O&D Survey) Milwaukee (MKE) 1 Richmond (RIC) 2 Boise (BOI) 3 Hartford (BDL) 4 Birmingham (BHM) 5 Ft. Myers (RSW) 6 Norfolk (ORF) 7 Buffalo (BUF) 8 Savannah (SAV) 9 Colorado Springs (COS) 10 AUS Airline Codes: AA AC AM AS B6 BA CM DL F9 G4 American Airlines Air Canada Aeromexico Alaska Airlines JetBlue Airways British Airways Copa Airlines Delta Air Lines Frontier Airlines Inc. Allegiant Air Airport Codes: ABQ AMA AMS ANC ATL AVL BDL BHM BNA BOI BOS BUR BWI CHS CLE CLT CMH CUN CVG Albuquerque, NM Amarillo, TX Amsterdam, Netherlands Anchorage Atlanta, GA Asheville, NC Hartford, CT Birmingham, AL Nashville, TN Boise, ID Boston, MA Burbank, CA Baltimore, MD Charleston, SC Cleveland, OH Charlotte, NC Columbus, OH Cancun, Mexico Cincinnati, OH Top 10 AUS International Markets Without Nonstop Service (Source: CY2023 FM Traffic) 1 2 3 4 5 6 7 8 9 10 Paris (CDG) Seoul (ICN) Rome (FCO) San Jose (SJO) Dublin (DUB) Madrid (MAD) Barcelona (BCN) Tokyo (HND) Sao Paulo (GRU) Montego Bay (MBJ) HA KL LH NK SY UA VB VS WN WS Hawaiian Airlines KLM-Royal Dutch Airlines Lufthansa German Airlines Spirit Airlines Sun Country Airlines United Airlines VivaAerobus Virgin Atlantic Airways Southwest Airlines WestJet MEX MFE MIA MKE MSP MSY MTY NAS OAK OGG OKC OMA ONT ORD ORF PBI PDX PHL PHX Mexico City, Mexico McAllen, TX Miami, FL Milwaukee, WI Minneapolis/St. Paul, MN New Orleans, LA Monterrey, Mexico Nassau, Bahamas Oakland, CA Kahului – Maui, HI Oklahoma City, OK Omaha, NE Ontario, CA Chicago O’Hare, IL Norfolk, VA Palm Beach, FL Portland, OR Philadelphia, PA Phoenix, AZ 21CZM DAL DCA DEN DFW DSM DTW ECP ELP EUG EWR FLL FRA FSD GRR HNL HOU HRL IAD IAH IND JFK LAS LAX LBB LGA LGB LHR LIR MAF MCI MCO MDW Cozumel, Mexico Dallas, TX Washington Reagan, DC Denver, CO Dallas/Ft. Worth, TX Des Moines, IA Detroit, MI Panama City, FL El Paso, TX Eugene, OR Newark, NJ Ft. Lauderdale, FL Frankfurt, Germany Sioux Falls, SD Grand Rapids, MI Honolulu, HI Houston Hobby, TX Harlingen, TX Washington Dulles, DC Houston Intercontinental, TX Indianapolis, IN New York JFK, NY Las Vegas, NV Los Angeles, CA Lubbock, TX New York – LaGuardia, NY Long Beach, CA London, UK Liberia, Costa Rica Midland/Odessa, TX Kansas City, MO Orlando, FL Chicago Midway, IL PIT PSP PUJ PTY PVR PVU RDU RNO RSW SAN SAT SDF SEA SFB SFO SGF SJC SJD SJU SLC SMF SNA SRQ STL TPA TUL TYS VPS XNA YUL YVR YYC YYZ Pittsburgh, PA Palm Springs, CA Punta Cana, Dominican Rep. Panama City, Panama Puerto Vallarta, Mexico Provo, UT Raleigh-Durham, NC Reno, NV Ft. Myers, FL San Diego, CA San Antonio, TX Louisville, KY Seattle, WA Sanford, FL San Francisco, CA Springfield, MO San Jose, CA San Jose del Cabo, Mexico San Juan, Puerto Rico Salt Lake City, UT Sacramento, CA Orange County, CA Sarasota, FL St. Louis, MO Tampa, FL Tulsa, OK Knoxville, TN Valparaiso, FL Fayetteville, AR Montreal, Canada Vancouver, Canada Calgary, Canada Toronto, Canada Data pull May, 24 2024 22AIRPORT ADVISORY COMMISSION ITEM 4 – STAFF BRIEFINGS Upcoming AEDP RCAs 23Solicitation RCA’s 2024 AUS Architectural & Engineering Services Rotation List (CLMP372) • Rotation List contracting method AUS Building Commissioning (Cx) Services (CLMP373) • Master Agreement contracting method • Received 22 Responses • Recommending 6 firms • Received 11 Responses • Recommending 1 firm • Total authorization: $60 Million • Total authorization: $24 Million • Terms: Dependent on expiration of authorization • Term: 4 years w/ 3 two (2) year options – 10 years • Goals: AA-1.82%, Hisp-2.96%, Asian-2.50%, WBE-2.66% • Goals: AA-1.73%, Hisp-3.63%, Asian-7.81%, WBE-4.31% • Services: Airport building, structural additions, civil, • Services: LEED Fundamental and Enhanced utility projects, other specialty work • Anticipated Tasks: Scoping, investigation, design, cost estimating, construction oversight, sustainability, other functions to meet project requirements • Anticipated NTP: August 2024 Commissioning or AEGB Basic Requirement and Additional Commissioning • Anticipated Systems: HVAC, thermal control, pumps and fans, building automation, lighting, domestic water, on- site water treatment, reclaimed/reuse water, building envelopes, IT and security, vehicle electrification, and renewable energy • Anticipated NTP: August 2024 24AIRPORT ADVISORY COMMISSION ITEM 4 – STAFF BRIEFINGS Journey with AUS AEDP/Capital Improvement Program) Active Projects Update provided by Lyn Estabrook, Deputy Chief Development Officer 25Journey With AUS - Airport Expansion & Development Program Active Projects Update Airport Advisory Commission June 2024 Lyn Estabrook Deputy Chief – Planning & Development 26Table of Contents ● Airfield Infrastructure – Midfield Taxiways ● Utilities Infrastructure Campus-Wide ● Central Utility Plant Relocation ● West Gate Expansion ● Fuel Facility (Tenant Project) ● West Infill and TSA Checkpoint 3 Expansion 27Airfield Infrastructure: Midfield Taxiways ○ ○ ○ ● Latest Updates 90% Design Finalized GMP development underway, anticipated end of June. ● Anticipated Timeline Pre-Construction GMP Support: Q3 2023 – Q3 2024 ○ Design: Q3 2023 – Q3 2024 ○ Build: Q4 2024 – Q2 2027 New conceptual rendering 28Utility Infrastructure Campus-Wide ● Latest Updates ○ ○ ○ ○ UICW Professional Engineering Services (PES) Council Award: May 30, 2024 UICW PES: Contract Execution on or before June 30, 2024 UICW Construction Manager at Risk (CMAR) interview May 21, 2024 UICW CMAR Council Award July 18, 2024 ● Anticipated Timeline Procurement: Q1 2024 – Q3 2024 ○ ○ Design: Q2 2024 – Q3 2025 ○ ○ Preconstruction: Q3 2024– Q3 2025 Build: Q4 2025 – Q2 2027 29Central Utility Plant Relocation ● Latest Updates July 06, 2024 Anticipated Design Build Contract Execution ● Anticipated Timeline Procurement: Q4 2023 – Q3 2024 Design: Q3 2024 – Q3 2025 Build: Q2 2025 – Q4 2027 ○ ○ ○ ○ Conceptual rendering 30Parking and Landside: West Garage Lot B ● Latest Updates Proposed A/E and CMR approved by Airport Advisory Committee Project team began meeting to discuss scope and schedule Proposed A/E and CMR firms approved by City Council 5/30/24 Contract negotiations underway ○ ○ ○ ○ ○ ○ ○ ● Anticipated Timeline Procurement: Q1 2024 – Q3 2024 Design: Q3 2024 – Q3 2025 Build: Q3 2025 – Q1 2028 Conceptual rendering 31BJT Optimization: West Gates Expansion ● Latest Updates ○ ○ Temporary Gate 33 opened and in use ○ Northside grade beams excavated, formed and concrete placed ○ North trench drain extension completed Steel erection anticipated to begin mid-June ● Anticipated Timeline ○ Build: Q2 2023 – Q1 2026 First Journey With AUS project crane 32Cargo Development East ● Latest Updates ○ Security System and connection to other aviation systems underway ○ Nearing Substantial Completion ● Anticipated Timeline ○ ○ Build: Q3 2022 – Q2 2024 Activate: Q2 2024 Interior – New East Cargo Building 33Fuel Facility ● Latest Updates ○ New fuel facility is under ○ operations by Menzies Aviation Landscaping is ongoing until fully established in a year ● Anticipated Timeline ○ Activate: Q4 2023 – Q2 2024 View of New Trees from the top of Tank 102 34BJT Optimization: West Infill & TSA Checkpoint 3 Expansion *As part of the Outbound Baggage Handling System project ● Latest Updates ○ Demolition of checkpoint bridge ○ New Infill building foundation work complete continues ● Anticipated Timeline ○ Build: Q1 2024 – Q1 2026 Please add any new imagery if applicable here Building Foundation Work 35New Active Projects Promo Video 3637Appendix 38Project Details Disadvantage Business Enterprise Goals; Delivery Methods; Project Budgets Midfield Taxiways ● Disadvantaged Business Enterprise Goals Utility Infrastructure Campus-Wide ● Disadvantaged Business Enterprise Goals ○ ○ ○ ○ ○ ○ ○ ○ Design: 17% Construction: 11.12% ● Delivery Methods Design: RS&H Construction: Construction Manager At Risk: Austin Bridge & Road Project Estimated Budget: $323,757,200 Midfield Investigations & Vehicle Checkpoints ● Disadvantaged Business Enterprise Goals Design: 73% Construction: To Be Determined ● Delivery Methods Design: Garver Construction: DBB Project Estimated Budget: $6,300,000 ● ○ ○ ○ ○ ○ ○ ○ ○ Design: 5.75% Construction: 6.32% ● Delivery Methods Design: To Be Determined Construction: To Be Determined ● Project Estimated Budget: $16 Million West Garage Lot B ● Disadvantaged Business Enterprise Goals Design: 10.54% Construction: 14.27% ● Delivery Methods Design: To Be Determined Construction: To Be Determined ● Project Estimated Budget: $288 Million 39Project Details Disadvantage Business Enterprise Goals; Delivery Methods; Project Budgets Outbound Baggage Handling System & West Infill ● Disadvantaged Business Enterprise Goals Construction & Design: 5.52% □ 10% anticipated ● Delivery Methods ○ ○ Design-Build □ Whiting-Turner □ Gensler, VTC BHS ● Project Estimated Budget: $238 Million West Gate Expansion ● Disadvantaged Business Enterprise Goals Design: 17% Construction: 11.12% ● Delivery Methods Design: Page Architects (Rotation List) Construction: Hensel Phelps Project Estimated Budget: $164.4 Million Cargo Development East ● Disadvantaged Business Enterprise Goals Design: 15.8% Construction: 1.13% □ 7.36% anticipated ● Delivery Methods Design: Atkins Construction: JE Dunn and Flintco ● Project Estimated Budget: $32.9 Million ○ ○ ○ ○ ○ ○ ○ ○ ○ 40Project Descriptions West Gate Expansion – 13184.014 ● The main expansion project will add 3 new Gates (short term) to the west end of the Barbara Jordan Terminal (BJT) and replace 12 aging boarding gates. This project will provide infrastructure needed for passenger growth, comfort, health and safety. Cargo Development East – 13189.026 ● A 90,000 SF facility for operators/tenants with room to expand to 99,000 SF. Includes employee parking, truck staging, drainage infrastructure, 3 aircraft parking positions. Outbound Baggage Handling System & West Infill – 5215.112 ● Design build a new centralized baggage handling system (BHS) to increase screening capacity, address existing operational concerns, and upgrade to 30 Million Annual Passengers processed. Includes the West Infill and TSA Checkpoint 3 expansion projects. Midfield Taxiways- 13188.003 ● Design and construct two concrete parallel midfield taxiways with taxiway connectors and access to the existing maintenance ramp. The project includes constructing two taxiway bridges, utility relocation, drainage improvements, demolition of existing pavements and infrastructure, new airfield lighting and signage, new security fencing, a new reclaimed water bulk refiling station and modifications to roadways and parking lots supporting the South Terminal. 41Project Descriptions Airline Fuel Facility (tenant project)– F7003.08 ● The AUS Fuel Facility had reached a point where a significant renovation was necessary to support the current and future fuel delivery to aircraft at Austin-Bergstrom International Airport (AUS). The project includes two bulk fuel storage tanks, three truck offloading systems, transfer/receipt pumping systems, fuel recovery and waste management systems, supporting facilities, two underground fuel transfer lines, upgrades to the existing Fuel Facility and a decorative fence. West Garage – Lot B – 13308.002 ● Planning, design and construction of a multi-level parking garage with a capacity of approximately 7,700 spaces. The designated location for this garage is the current Lot B surface parking area (approx. 326,000 sf), situated directly north of the existing Blue Garage. This project creates additional parking to replace parking and revenue lost due to construction and to meet future demand connected with enplanement growth forecasts associated with the addition of Concourse B Central Utility Plant – 13307.002 ● Design, construct and commission a new, appropriately sized CUP and associated Thermal Energy Storage (TES) utilizing current efficiency technology, equipment, and operational processes to provide reliable, redundant and resilient service for the existing and future AUS cooling and heating loads. Utility Infrastructure Campus-Wide – 13307.001 ● Design, construct and commission a new, appropriately sized CUP and associated Thermal Energy Storage (TES) utilizing current efficiency technology, equipment, and operational processes to provide reliable, redundant and resilient service for the existing and future AUS cooling and heating loads. Midfield Investigations and Vehicle Checkpoints – 6000.121 ● This project will expand guard-shacks at two vehicle Checkpoints, Alpha and Charlie, to allow efficient and secure access to the Aircraft Operations Area. The Midfield survey scope has been completed. 42Thank You! 43AIRPORT ADVISORY COMMISSION ITEM 6 – DISCUSSION/ACTION ITEM Approve an ordinance amending the Fiscal Year 2023- 2024 Aviation Department Operating Budget Airport Operating Fund (Ordinance No. 20230818-008) to recognize additional revenue in the amount of $10,082,451 and increase appropriations in the amount of $10,082,451 to accommodate adjustments implemented because of the Aviation staffing market study, reflect expenses resulting from the greatly improved vacancy rate that outperformed expectations, wage and vacancy adjustments associated with contractual agreements, and increased commodity purchase needs. 44City of Austin Recommendation for Action File #: 24-4803, Agenda Item #: 7/18/2024(cid:4) Posting Language Approve a resolution authorizing acceptance of grants from the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to the City of Austin, Department of Aviation, for Austin-Bergstrom International Airport for Fiscal Years 2025-2027 in an amount not to exceed $500,000,000. Lead Department Aviation Fiscal Note Grant reimbursement will apply to projects in the Fiscal Years 2025-2027 Approved Capital and/or Operating Budgets of the Aviation Department. Grant funds will be placed in the Airport Capital Fund, the ABIA Improvement Funds and/or the ABIA Operating Fund. The General Fund will not be required to contribute to this grant. There is no unanticipated fiscal impact. Prior Council Action: Council approved Resolution No. 20220324-004 authorizing acceptance of grant funds for Fiscal Years 2022- 2024. For More Information: Rajeev Thomas, Chief Financial Officer, Department of Aviation: (512) 530-2463 or Rajeev.Thomas@flyaustin.com <mailto:Rajeev.Thomas@flyaustin.com> . Council Committee, Boards and Commission Action: To be reviewed by the Airport Advisory Commission on June 12, 2024. Additional Backup Information: In March 2022, Council adopted Resolution 20220324-004 which authorized the Department of Aviation to accept grant funds from the Federal Aviation Administration, Department of Homeland Security, and other state and federal agencies for Fiscal Years 2022-2024. That authorization is set to expire at the end of Fiscal Year 2024, and the Department is requesting new authorization for Fiscal Years 2025-2027. Approval of this request will allow the City Manager or the Chief Executive Officer of the Department of Aviation to quickly accept and execute grant offers made available by the abovementioned government agencies. Grant Amounts, as they may become available, would reduce the need to utilize airport-generated capital or revenue bonds for funding airfield and terminal improvements, capital infrastructure, equipment, as well as numerous projects within the Airport Expansion and Development Program. These projects include the Central Utility Plant Relocation, Midfield Taxiways, Concourse B - Phase 1 and tunnel system, the Utility Infrastructure Campus Wide Project, and the new Arrivals and Departures Hall. Grant funding may also reimburse operating expenses. City of Austin Page 1 of 1 Printed on 6/3/2024 powered by Legistar™ 45(cid:5) (cid:6) OPERATING BUDGET FISCAL NOTE DATE OF COUNCIL CONSIDERATION: DEPARTMENT(S): FUND: 7/18/24 Aviation Airport Operating SUBJECT: Approve an ordinance amending the Fiscal Year 2023‐2024 Aviation Department Operating Budget  Airport Operating Fund (Ordinance No. 20230818‐008) to recognize additional revenue in the amount of  $10,082,451 and increase appropriations in the amount of $10,082,451 to accommodate adjustments implemented  because of the Aviation staffing market study, reflect expenses resulting from the greatly improved vacancy rate,  wage and vacancy adjustments associated with contractual agreements, and increased commodity purchase needs. Facilities Management, Operations, and Airport Security Support Services Airport Planning & Development Business Services CURRENT YEAR IMPACT: Beginning Balance Total Revenue Total Transfers In Total Available Funds Department Requirements Total Department Requirements Total Other Requirements Total Transfers Out Total Requirements Excess (Deficiency) of Total Available  Funds Over Requirements  Ending Balance Full‐time Equivalents FIVE‐YEAR ESTIMATED IMPACT: 2023‐24 Approved 0  This   Action  2023‐24 Amended 0 289,208,645 10,082,451 299,291,096 16,658,692 16,658,692 305,867,337 10,082,451 315,949,788 85,141,445 46,218,424 8,161,976 14,238,156 153,760,001 3,992,124 6,129,000 1,752,000 101,000 618,000 8,600,000 91,270,445 47,970,424 8,262,976 14,856,156 162,360,001 3,992,124 82,987,480 1,482,451 84,469,931 240,739,605 10,082,451 250,822,056 65,127,732 65,127,732 65,127,732 65,127,732 674.00 0.00 674.00 0 0 0 0 0 0 0 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Total Revenue Total Expenses 10,082,451 10,082,451 0 0 0 0 0 0 ANALYSIS / ADDITIONAL INFORMATION: This budget amendment is to accommodate adjustments resulting from a greatly improved vacancy rate that outperformed expectations, wage and vacancy adjustments associated with contractual agreements, increased commodity purchase needs and implementation of the Aviation staffing market study. This amendment will increase appropriation to the Department of Aviation and will be funded from operating revenues within the Airport Operating Fund without impact to the General Fund. The Department of Aviation in collaboration with the City of Austin Human Resources Department, is in the final stage of completion of the Aviation staffing market study. The market study compared the salary ranges for positions at the Department of Aviation with comparable airports in other markets. Changes to salary ranges resulting from conclusions of the market study will be implemented within FY2024 and will have a material financial impact on the operating expenses of the Department of Aviation. In the wake of the COVID‐19 pandemic, the Department of Aviation’s vacancy rate surged to as high as 40% as a result of increased number of FTEs necessitated by greatly increased passenger traffic and by challenges recruiting and retaining staff. The Department has worked to address the hiring and retention issues and year to date has far outpaced the forecasted improvement in vacancy rate included in the FY2024 Budget. As of May 2024, the Department has a vacancy rate of 20% and forecasts this will continue to improve through the end of the fiscal year. This has driven a significant variance compared to the approved FY2024 Budget due to the additional personnel cost from improved staffing levels. 46The Department has also experienced a significant increase in staffing costs across various contracted and City of Austin services, including the parking operations contract and the services provided by the APD and AFD at the airport. The improved staffing at AUS and within contracted services has resulted in a return to the high level of service our passengers expect at the airport. This has driven an increase in the volume of commodities purchased for facility services as restrooms and airport facilities are cleaned at a more frequent interval. Additionally, the increase in passenger traffic that the airport has experienced post pandemic has also driven increased need for repair and maintenance of aging buildings and equipment (i.e. baggage handling system, passenger boarding bridges, Central Utility Plant equipment, airfield lighting, elevators/escalators). Finally, the Department continues to experience supply chain issues and inflationary pressures for some commodities which has further driven up commodity expenses. The transfer to the Airport Operating Reserve will increase as a result of the increase in operating expenses. The operating  reserve must maintain 2 months of airport operating expenses in compliance with bond covenants. Based on analysis of operating revenue realized year‐to‐date, Aviation is projecting additional revenue from beyond what was 47AIRPORT ADVISORY COMMISSION ITEM 7 – DISCUSSION/ACTION ITEM Approve a resolution authorizing acceptance of grants from the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to the City of Austin, Department of Aviation, for Austin-Bergstrom International Airport for Fiscal Years 2025-2027 in an amount not to exceed $500,000,000. 48City of Austin Recommendation for Action File #: 24-4803, Agenda Item #: 7/18/2024(cid:4) Posting Language Approve a resolution authorizing acceptance of grants from the Federal Aviation Administration, the Department of Homeland Security, and other state and federal agencies to the City of Austin, Department of Aviation, for Austin-Bergstrom International Airport for Fiscal Years 2025-2027 in an amount not to exceed $500,000,000. Lead Department Aviation Fiscal Note Grant reimbursement will apply to projects in the Fiscal Years 2025-2027 Approved Capital and/or Operating Budgets of the Aviation Department. Grant funds will be placed in the Airport Capital Fund, the ABIA Improvement Funds and/or the ABIA Operating Fund. The General Fund will not be required to contribute to this grant. There is no unanticipated fiscal impact. Prior Council Action: Council approved Resolution No. 20220324-004 similarly authorizing acceptance of grant funds for Fiscal Years 2022-2024. For More Information: Rajeev Thomas, Chief Financial Officer, Department of Aviation: (512) 530-2463 or Rajeev.Thomas@flyaustin.com <mailto:Rajeev.Thomas@flyaustin.com> . Council Committee, Boards and Commission Action: To be reviewed by the Airport Advisory Commission on June 12, 2024. Additional Backup Information: In March 2022, City Council adopted Resolution 20220324-004 which authorized the Department of Aviation to accept grant funds from the Federal Aviation Administration, Department of Homeland Security, and other state and federal agencies for Fiscal Years 2022-2024. That authorization is set to expire at the end of Fiscal Year 2024, and the Department is requesting new authorization for Fiscal Years 2025-2027. Approval of this request will allow the City Manager or the Chief Executive Officer of the Department of Aviation to quickly accept and execute grant offers made available by the abovementioned government agencies. Grant Amounts, as they may become available, would reduce the need to utilize airport-generated capital or revenue bonds for funding airfield and terminal improvements, capital infrastructure, equipment, as well as numerous projects within the Airport Expansion and Development Program. These projects include the Central Utility Plant Relocation, Midfield Taxiways, Concourse B - Phase 1 and tunnel system, the Utility Infrastructure Campus Wide Project, and the new Arrivals and Departures Hall. Grant funding may also reimburse operating expenses. City of Austin Page 1 of 1 Printed on 5/16/2024 powered by Legistar™ 49(cid:5) (cid:6) AIRPORT ADVISORY COMMISSION ITEM 8 – DISCUSSION/ACTION ITEM Authorize negotiation and execution of a contract for a technology service solution including support with Creative Enterprise Solutions, LLC d/b/a Beyond20, for up to five years for a total contract amount not to exceed $1,200,000. [Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program). For the services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. 50City of Austin Recommendation for Action File #: 24-4822, Agenda Item #: 7/18/2024(cid:4) Posting Language Authorize negotiation and execution of a contract for a technology service solution including support with Creative Enterprise Solutions, LLC d/b/a Beyond20, for up to five years for a total contract amount not to exceed $1,200,000. [Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program). For the services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. Lead Department Financial Services Department. Client Department(s) Department of Aviation. Purchasing Language: Professional Service. Fiscal Note Funding in the amount of $53,596 is available in the Fiscal Year 2023-2024 Operating Budget of the Department of Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department - Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. . Council Committee, Boards and Commission Action: June 12, 2024 - To be reviewed by the Airport Advisory Commission. Additional Backup Information: The contract is for software licenses, software support, professional services, consulting, and training to support the Department of Aviation’s (Aviation) Information Technology Service Management software system (ITSM). This system allows the Aviation Information Systems (IS) Division to automate and manage enterprise information, technology operations, and provides a single platform for all information technology related processes. Additionally, this solution provides a single system of record for end-to-end tracking of technology- based assets and services. The contract will support the continued development of the ITSM system by providing annual software licensing, support and maintenance, along with expert guidance and services for implementation of additional functionality and processes. The services provided by this contract will support Aviation’s information technology best practices and continual improvement efforts. City of Austin Page 1 of 2 Printed on 6/3/2024 powered by Legistar™ 51(cid:5) (cid:6) File #: 24-4822, Agenda Item #: 7/18/2024(cid:4) This contract is replacing an existing contract expiring August 7, 2024, which was awarded through a Request for Proposals process. This contractor has knowledge of and experience with the existing workflows, processes, and customizations of the software specific to Aviation IS which gives them unique qualifications. They have deep knowledge of this platform as well as significant understanding of Aviation IT’s operations and needs and can provide expert consulting, guidance and solutions for system and process improvements specific to Aviation IS. The Aviation IS supports approximately 500 internal City employees and approximately 75 airport business partners through its shared tenant services program. Failure to continue using this software system would leave the airport without a reliable system for tracking work orders and service requests, and with no system for tracking key metrics to drive improvements. City of Austin Page 2 of 2 Printed on 6/3/2024 powered by Legistar™ 52(cid:5) (cid:6)  AIRPORT ADVISORY COMMISSION ITEM 10 – DISCUSSION ITEM Discussion on the Airport Advisory Commission Annual Internal Review covering the period of July 1, 2023 thru June 30, 2024, and upcoming year’s goals. 53Annual Internal Review 7/1/2022 to 6/30/2023 AIRPORT ADVISORY COMMISSION The Board/Commission mission statement (per City Code 2-1-105) is: The commission shall: (1) review and make recommendations to the council on aviation projects that the Department of Aviation proposes for the capital improvements program; (2) review and make recommendations to the council on proposed aviation grants, including airport trust funds administered by the Federal Aviation Administration; (3) review and make recommendations to the council on aviation contracts that are presented by the Department of Aviation to the council for action; (4) review and make recommendations to the council on the annual operating budget proposed by the Department of Aviation; and (5) review and make policy recommendations to the council on the quality of services at Austin-Bergstrom International Airport to citizens of Austin and customers of the airport and long term planning of Austin-Bergstrom International Airport. 1. Describe the board’s actions supporting their mission during the previous calendar year. Address all elements of the board’s mission statement as provided in the relevant sections of the City Code. Eleven monthly meetings and one special called meeting were conducted (December 2022). Hybrid meetings were livestreamed, recorded and archived on ATXN beginning in January 2023. An Open House (February 2023) and an Industry Day (April 2023) were posted for Community Interest. Meetings contained regular staff briefings that include Air Service Update, Finance Report, and Journey with AUS Capital Improvement Program (current Barbara Jordan Terminal Projects that include Baggage Handling, Gate 13, and 3-Gate West End Expansion; South Demolition) in addition Airport Principal Architect/Engineer Contract. 54All other briefings were requested by commissioners and have included reports on compliance with City of Austin Better Builder Program and coordination with the Workers Defense Project/Certification Associates concerning onsite monitoring, Small Minority Business Resource (SMBR) contracting goals, Jet Fuel Facility outreach, Passenger Experience measurements, Director resignation, South Terminal litigation and settlement, Austin-Bergstrom Landhost Enterprises (ABLE), Advertising Contract, Industry Days and Open House overviews, Accessibility, Hidden Disabilities Sunflower Program, 8/10/22 Terminal Evacuation, 9/7/22 Power Outage, 2/22/23 Runway Incident. The following recommendations from staff for City Council action were approved: July 2022 Authorize negotiation and execution of a contract with SKIDATA, Inc. to provide remote and onsite maintenance, support, and repair services of the parking revenue and control system for a term of 10 years in an amount not to exceed $4,008,200. Approve a resolution approving amendments to the Amended and Restated Hotel Management Agreement between Austin-Bergstrom Landhost Enterprises, Inc. and Boykin Prospera, LLC. Authorize contingency in an amount of $1,000,000 to the job order assignment for Barbara Jordan Terminal Optimization Vertical Circulation Project with Alpha Building Corporation for a total assignment amount not to exceed $4,000,000. Authorize negotiation and execution of a professional services agreement with WSP USA Inc. (staff recommendation) or one of the other qualified respondents(s) for Request for Qualifications Solicitation No. CLMP334 to provide Program Management and Staff Augmentation Services for the Airport Program Management Support Consultant Services August 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 monitoring system for a term of five years in an amount not to exceed $520,000. 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. 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. September 2022 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. October 2023 Approve a resolution finding the use of the Construction Manager at Risk method of contracting, 55as authorized by Subchapter F, Chapter 2269 of the Texas Government Code, for the Barbara Jordan Terminal Optimization – Phase 2 project. November 2023 December 2023 January 2023 Authorize negotiation and execution of a contract to provide communications, community engagement and marketing support with Eis Design Inc., for a term of five years in an amount not to exceed $2,500,000. February 2023 March 2023 Authorize execution of a construction contract for the Airport Expansion and Development Program Building Demolition project with STR Constructors, LLC, in the amount of $3,482,852 plus a $522,428 contingency, for a total contract amount not to exceed $4,005,280. April 2023 Authorize an amendment to the contract for construction services for the Barbara Jordan Terminal Optimization with Hensel Phelps Construction Co., in the amount of $89,000,000 for a revised total contract amount not to exceed $135,000,000. [ Authorize negotiation and execution of a contract to provide communications cable infrastructure maintenance and repair services, with Brymer Communication Services, LLC, for a term of five years in an amount not to exceed $2,500,000. May 2023 Authorize an amendment to a contract for architectural and engineering services for the Airport Principal Architect/Engineer, with HNTB Corporation, to increase the amount by $27,000,000, for a revised total contract amount not to exceed $52,000,000. Authorize negotiation and execution of amendments to six retail food and beverage concession lease agreements with Brazos Concessions Co./Salt Lick Joint Venture; AUS Plus Retail, LLC; DNC AUS Plus F&B, LLC; Paradies Lagardere @ AUS, LLC; News and Gift Shops International-Austin Joint Venture; and Host International, Inc., to extend the term of these agreements by four years, provide additional enhancements to product offerings, and require additional capital investments. Authorize negotiation and execution of a contract for enterprise security information and event management software products and services with DeSpain & Associates, Inc d/b/a DAI Source, for a term of three years in an amount not to exceed $440,000. The following recommendations were from the Airport Advisory Commission: June 2023 Approved recommendation by the Airport Advisory Commission to Project Connect, Austin Transit Partnership and CapMetro regarding transportation alternatives to Austin- Bergstrom International. Approved recommendation by the Airport Advisory Commission to establish a cooperative relationship between the Environmental Commission and Joint Sustainability Committee with the Airport Advisory. 56Public Communications included the following topics: Jet Fuel Facility, South Terminal, Digital Advertising, Community Engagement, Disability Awareness, Project Connect, Bicycle and Pedestrian Access, Environmental Reporting. 2. Determine if the board’s actions throughout the year comply with the mission statement. Actions of the Airport Advisory Commission comply with the mission statement items (1), (3), and (5). Airport Advisory Commission were briefed following staff actions but did not otherwise participate in (2) regarding Federal Aviation Administration grants or (4) regarding Department of Aviation operating budget. 3. List the board’s goals and objectives for the new calendar year. Participate in orientation and airport tour. Establish working group to study proposed timeline and make recommendations to accelerate expansion. capacity. Study projected demand profile and understand how project contracts meet forecasted Continue to work with staff to conduct meaningful community stakeholder engagement with residents within the Airport Overlay, advocates for transportation alternatives and safe bicycle and pedestrian access, travelers with different abilities. Encourage greater inclusivity and participation of Disadvantage Business Enterprises (DBE) for Construction and Related Professional Services as well as Goods and Services in accordance with City of Austin and FAA guidelines. Support living wages and fair labor practices, including neutrality agreements, in accordance with City of Austin policy. Promote apprenticeship utilization and community workforce development partnerships and programs with an emphasis on recruiting people of color, women, and disadvantaged communities. Follow Master Development Plan Ordinance. Track Airport Expansion Development Plan (AEDP) contracts and construction progress. Utilize available key performance indicators to include on a posted dashboard. Work with Austin Transit Partnership, CapMetro and transit advocates to ensure more transit/transportation option for airport workers and travelers. Recognize the contributions of aviation staff and celebrate their accomplishments. 57