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Home My WebLink About10/19/2022 - Meeting Agenda Advisory Board Meeting October 19, 2022 Pursuant to City Code 2.14.060(A) and Utah Code section 52-4-207(2), the Airport Advisory Board adopted a rule permitting electronic meetings for this Board, regardless of whether a quorum is present at an anchor location, so long as such meetings comply with the Open and Public Meetings Act. To access the meeting please visit: https://saltlakecity.webex.com/saltlakecity/onstage/g.php?MTID=e3a8e6f412e4a6932a43b82 93aaaa2ca4 ADVISORY BOARD MEETING AGENDA 19 October 2022 9:00 A.M. CONSENT A. Minutes of the 21 September 2022 Meeting DISCUSSION A. Director’s Report – Bill Wyatt, Executive Director, SLCDA B. Airport Redevelopment Program (ARP) Update – Brian Stetson, Deputy Program Director, SLCDA C. Review of Financial Position– Brian Butler, CFO, SLCDA D. Master Plan- Brady Fredrickson, Director of Planning and Environmental, SLCDA MEDIA CLIPPINGS Media Clippings – October 2022 INFORMATION ITEMS Financial Report- August 2022 Air Traffic Statistics – August 2022 Construction Report –October 2022 The next meeting will be held on Wednesday, November 16, 2022, at 9:00 a.m. Meetings are usually held in the Board Room, located on the third level of the airport terminal and via Web-ex unless otherwise posted. People with disabilities may make requests for reasonable accommodations no later than 48 hours in advance in order to attend this Airport Advisory Board Meeting. Accommodations may include alternate formats, interpreters, and other auxiliary aids. This is an accessible facility. For questions or additional information, please contact Brett Christensen at 801-575-2042. Advisory Board Meeting October 19, 2022 Agenda Advisory Board Meeting September 21, 2022 Minutes SALT LAKE CITY DEPARTMENT OF AIRPORTS MINUTES OF ADVISORY BOARD MEETING September 21, 2022 Members Present: Steve Price, Chair Theresa Foxley John Bradshaw Karen Mayne* Dirk Burton Roger Boyer* Mayor’s Office Rachel Otto* City Council Sam Owen* Victoria Petro-Eschler Department of Airports: Bill Wyatt, Executive Director Brett Christensen, Executive Assistant Treber Anderson, Director of Operations Eddie Clayson, Director of Maintenance Medardo Gomez, ORAT Director Brady Fredrickson, Director of Planning and Environmental Pete Higgins, Chief Operations Officer Mike Williams, ARP Program Director Nancy Volmer, Communication and Marketing Director Melyssa Trnavskis, Director of Design and Construction Mgmt. Ed Cherry, Director of IT* Brian Butler, Chief Financial Officer* Shane Andreasen, Director of Admin. and Commercial Services* Megan DePaulis, Senior City Attorney* Catherine Brabson. City Attorney* Stefhan Bennett, SLC Police Captain* Brady George, Battalion Chief* Nate Lavin, Airport Service Development Manager Other: Kory Cox, HOR Inc. Steve Price called the meeting, held in-person at the SLCDA Admin Offices Board Room and via Webex, to order at 9:11 a.m. (* indicates the party attended virtually) AGENDA A. Minutes A motion was made by Steve Price to approve the minutes of August 3, 2022, as presented. All votes were affirmative; motion passed. B. Director’s Report Bill Wyatt, Executive Director, updated the Airport Advisory Board regarding current events, growth of the Airport, gate allocation, and the AUA. Also speaking briefly on wheelchair accessibility. Mayor Burton asked how a person interested in pushing a wheelchair would go about applying for that job. Wyatt explained that applications can be filled out at https://www.prospectair.com/employment/ there is also a link on the Airport website. Theresa Foxley asked if the criminal background checks are required through TSA. Wyatt explained that yes, everyone that goes to the secure side of the airport without a ticket must have a badge or be escorted by someone with a badge. Foxley inquired about wheelchairs and if there are self-guiding mobility options. Wyatt spoke about new wheelchairs we are receiving at the airport. Steve Price gave praise for the AUA in combination with a 10-year lease extension. Wyatt replied with acknowledging the whole team for working so hard on the agreements. C. Airport Redevelopment Program (ARP) Update – Mike Williams, ARP Director, SLCDA Mike Williams, Airport Redevelopment Program (ARP) Director, presented an update on the ARP (presentation on file). Main points included were: • Safety and Schedule Stats, and Cost Summary • Near Term Schedule Milestones • ARP Overall Budget • Concourse ‘A’ East/Central Tunnel/Airfield • Concourse ‘B’ East • Overall Phase 2 and Phase 3 Phased Delivery • Job progress photos • New TSA exit doors Burton asked if there are sensors on the security doors. Mike Williams explained there are multiple sensors, cameras and three compartments you walk through. If you decide to turn around once you’re inside the doors, alarms will go off. Tye Hoffman inquired about the hardstand and when we will no longer be using them. Wyatt explained the hard stand we are using right now for Delta will go away in the fall of 2023. Concourse B will likely have a permanent hardstand hold room for low-cost carriers that have a need for it. D. Phase IV Overview & Gate Review – Shane Andreasen, Director of Airport Administration/Commercial Services, SLCDA Shane Andresen, Director of Airport Administration/Commercial Services, presented an update on the Phase IV, Main points included were: • Summary of gates • Level 1 Program o Support space for airlines and concessions • Final Gate Layout • Level 1 Hardstand & Employee Bus Plaza • Level 2 & 3 Program o Center far east end will be two escalators to take people downstairs to 7 gates o 15,000 SF Third-Party Lounge • Final Gate Layout o Mid concourse tunnel will stay open o From 2023-2027 we will be opening gates each year Hoffman asked about needing additional gates for international travel. Wyatt explained we have six international gates right now. We are in a good space having a sterile corridor and doubling the size of the Federal inspection station. E. AUA Amendment- Brian Butler, Chief Financial Advisor, SLCDA Brian Butler, Chief Financial Advisor, presented an update on the AUA, Main points included were: • Affordability Analysis o Days Of Cash on Hand o Debt Service Coverage o Airline Cost per EP • Financial Projections – Phase IV • AUA Amendment Highlights o Net Terminal Revenue Requirement o Increased Revenue Sharing o Terms o General Language • Next Steps o Air Carrier Briefings o Updated Phase IV Estimate & Design o City Council Budget Amendment Approval There were no further questions. Steve Price adjourned the meeting at 10:24 a.m. ___________________________ ________________________ Steve Price, Chair Date ___________________________ _________________________ Erin Mendenhall, Mayor Date Advisory Board Meeting October 19, 2022 Discussion Items AGENDA: DISCUSSION ITEM (A) DATE: 19 October 2022 TO: Airport Advisory Board FROM: Bill Wyatt, Executive Director SUBJECT: Executive Director’s Report Bill Wyatt, Executive Director, will present a monthly informational report to the Board, which may include: 1. ARP progress 2. Ground transportation update 3. Concessions and rental cars 4. Airport safety and security 5. Airport facilities and operations 6. General aviation 7. Passenger and airport users 8. Environmental matters 9. Financial condition 10. Legislative issues 11. Airlines 12. Communications and marketing AGENDA: DISCUSSION ITEM (B) DATE: 19 October 2022 TO: Airport Advisory Board FROM: Bill Wyatt, Executive Director SUBJECT: Airport Redevelopment Program Update Brian Stetson, Airport Redevelopment Program (ARP) Deputy Program Director, will present an update on the SLC Airport Redevelopment Program (presentation on file). Status Update 10/19/2022 AIRPORT REDEVELOPMENT PROGRAM Safety, Statistics and Schedule Safety Statistics Numbers for September –OSHA National Average –Lost Time Rate 1.60 Recordable Rate 2.50 –HDJV Metrics –9,737,602 Total Trade Hours worked –Lost Time Rate 0.22 Recordable Rate 2.30 Trade Hours for the Program Overall –ARP Metrics (HDJV+AOJV) –11,899,217 Total Trade Hours worked Trade Workers on Site –790 Trade Workers (week ending 10/07/2022) Schedule Status -Critical Path –Airfield -Completion of Airfield Paving and Activation of Taxilane 2E (North) –SCE –Completion of Hydro-Piping Flush and Fill –SCE –Start-up of Air Handler Units & Conditioning of Air –NCP Phase 3 –Completion of Structural Steel Erection and Placement of Elevated Deck Concrete –Overall Program is on schedule 2 Near Term Schedule Milestones 3 Airport Redevelopment Program Overall Budget 4 Construction Budget September 2022 Budget 9/22/22 FOC Committed Aug-22 Commitments Sep-22 *Pending Commitments Revised Commitments Earned to Date Estimate at Completion Closed TRP CGMPs 1, 2, 2A-2D, 3, 4, 5, 7, 9, 09A, 12 $1,532,021,660 $1,532,021,660 $0 $0 $1,532,021,660 $1,532,021,660 $1,532,021,660 Closed NCP CGMPs 13, 14, 15, 16, 17, 18 & 19 $487,852,444 $487,852,444 $0 $0 $487,852,444 $487,852,444 $487,852,444 CGMP 2E,F&H CMAR General Conditions/Services $107,642,170 $100,410,170 $0 $0 $100,410,170 $35,995,000 $107,642,170 CGMP 06 Parking Garage, Roadways, CUP $403,477,666 $405,856,439 $0 ($2,378,773)$403,477,666 $401,115,592 $403,477,666 CGMP 10 South Concourse East/Tunnel Shell $554,410,047 $554,410,047 $0 $0 $554,410,047 $379,458,852 $554,410,047 CGMP 11, 11A & 11B Apron Paving & Fueling $275,423,126 $203,341,893 $0 $0 $203,341,893 $139,494,524 $275,423,126 CGMP 19A Phase 3 NCP/Tunnel Buildout $332,870,248 $332,870,248 $0 $0 $332,870,248 $58,605,692 $332,870,248 CGMP 20 NCP Phase 2 Airfield Paving & Jet Fuel $77,645,774 $77,645,774 $0 $0 $77,645,774 $6,661,082 $77,645,774 Total Program Construction $3,771,343,135 $3,694,408,675 $0 ($2,378,773)$3,692,029,902 $3,041,204,846 $3,771,343,135 TRP Owner Procurement $5,472,527 $5,472,527 $0 $0 $5,472,527 $4,808,421 $5,472,527 NCP Owner Procurement $3,039,266 $3,039,266 $0 $0 $3,039,266 $1,860,182 $3,039,266 Security Checkpoint Equipment $12,506,042 $11,751,472 $0 $0 $11,751,472 $7,848,061 $12,506,042 Automated Security Exit Door Equipment $917,430 $917,430 $0 $0 $917,430 $0 $917,430 TRP Soft Cost $383,005,010 $326,373,020 $3,756,000 $0 $330,129,020 $301,306,308 $383,005,010 NCP Soft Cost $185,593,794 $139,639,623 $0 $0 $139,639,623 $110,699,387 $185,593,794 Total Program Soft Cost $590,534,069 $487,193,338 $3,756,000 $0 $490,949,338 $426,522,359 $590,534,069 CGMP 2G CMAR Preconstruction Phase 4 $1,414,757 $1,414,757 $0 $0 $1,414,757 $1,222,353 $1,414,757 NCP Soft Cost Phase 4 $16,547,016 $16,539,531 $0 $0 $16,539,531 $10,431,312 $16,547,016 Total Phase 4 Planning Cost $17,961,773 $17,954,288 $0 $0 $17,954,288 $11,653,665 $17,961,773 TRP Owner Reserve $22,057,342 $0 $0 $0 $0 $0 $22,057,342 NCP Owner Reserve $50,076,743 $0 $0 $0 $0 $0 $50,076,743 Total Program Owner Reserve $72,134,085 $0 $0 $0 $0 $0 $72,134,085 Total ARP Program Budget $4,451,973,062 $4,199,556,301 $3,756,000 ($2,378,773)$4,200,933,528 $3,479,380,870 $4,451,973,062 *Pending Commitment for Final/Closeout Revision to CGMP 6 will reduce the CGMP 6 commitment to the 09/02/21 Budget Airport Redevelopment Program Overall Phase 4 Adjusted Budget 5 Concourse ‘A’ East/ Central Tunnel/Airfield Central Tunnel •Moving Walkway Installation Progressing •Mechanical, Electrical and Plumbing Installation Progressing •Fire Protection Installation Progressing •South and North Access Hole Concrete Infill Complete •Wall and Soffit Drywall Studs Underway Concourse ‘A’ East •Mechanical, Electrical and Plumbing Rough-in Progressing •BHS Early Bag Storage Conveyor Installation Progressing •IT/Special Systems Cabinet/Cabling Installation Progressing •Ceiling Grid and Column Cover Installation Continuing •Terrazzo Installation in Main Circulation Areas Progressing •Restroom Fixture, Millwork, Toilet Partitions and Mirror Installation Progressing •Started Concrete Floor Pre for Carpet •Started Holdroom Gate Signage •Started Passenger Boarding Bridge Installation 6 Concourse ‘A’ East/ Central Tunnel/Airfield Airfield •Site Utilities Progressing •Hydrant Fuel System Flushing of Loop around Concourse ‘A’ East Complete •Airfield Paving East/West Taxilane Production Paving Progressing •Airfield Paving South and North Sides of Concourse ‘A’ Progressing •Airfield Paving Over Central Tunnel –Main Area Complete •Taxiway ‘H’ for Rehabilitation Activities Progressing 7 Concourse ‘B’ East (Phase 3) Concourse ‘B’ East 8 Gate (Phase 3) •Foundation Formwork and Concrete Placement Progressing •Building Shallow Underground MEP Progressing •Slab-on-Grade Concrete Placement Continuing •Structural Steel Erection Progressing •Started Elevated Metal Deck Installation 8 9 Overall Phase 2 and Phase 3 Phased Delivery High Speed BHS Conveyor Operational May 2024 Baggage Make-up Operational May 2024 Open Gate B24 May 2024 Phase 4 –Gate Delivery Schedule 10 11 Closing up South Central Tunnel Access 12 Airfield Activities Passenger Boarding Bridge Installation Passenger Boarding Bridge Installation Paving Taxilane 2E Paving Taxilane 2E Looking East 13 Concourse A East –Level 1 Interior Progress Back of House Restroom Progress Level 1 Permanent Power Back of House Corridor Diamond Plate Concourse ‘A’ BHS Early Bag Storage 14 Concourse A East –Level 2 Interior Progress Early Gate Separation Wall Framing Concession Space Area A Looking East from Area E to Far East End Wall Framing Far East End 15 Central Tunnel–Interior Progress High Speed Baggage Cell –BHS/Ductwork Main Passenger Walkway Studs Moving Walk Installation Drywall and Ductwork Progress 16 Concourse B (Phase 3) North Ductbank Phase 3 Steel Erection Phase 3 Steel Erection Additional Sky Club Expansion Foundations AGENDA: DISCUSSION ITEM (C) DATE: 19 October 2022 TO: Airport Advisory Board FROM: Bill Wyatt, Executive Director SUBJECT: Review of Financial Position Brian Butler, Chief Financial Officer, will present an update on the Financial Audit. 1 Salt Lake City Department of Airports Review of Financial Positionas of June 30, 2022 Presentation to Airport Advisory Board October 19, 2022 2 FY 2022 Financial & Operational Highlights Passenger traffic increased 66% over FY 2021 Landed weights increased 14.3% over FY 2021 Operating revenue increased 40.2% over FY 2021 Operating expenses under budget by 13.1% Terminal Redevelopment Program (TRP) and North Concourse Program (NCP) spent to date $3.4 B 3 Enplaned Passenger Traffic Annual Enplanements Actual 2018 Actual 2019 Actual 2020 Actual 2021 Actual 2022 Budget 2023 Enplanements (000s)12,420 13,090 10,096 7,710 12,802 13,933 Annual Change 4.8%5.4%(22.9%)(23.6%)66.0%8.8% 6 8 10 12 14 16 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 Mi l l i o n s Enplanements Enplanements 4 CPE Ten Year History -SLC $3.84 $3.90 $3.65 $3.69 $3.53 $3.83 $3.90 $5.41 $11.25 $8.11 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 $8.50 $9.00 $9.50 $10.00 $10.50 $11.00 $11.50 $12.00 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 5 Budget Comparison Description FY 2022 Budget FY 2022 Actual Favorable / (Unfavorable) Operating Revenue $249,663,000 $ 258,945,000 $ 9,282,000 Airline Revenue Sharing (2,376,000)(13,566,000)(11,190,000) Operating Expense (161,864,000)(140,619,000)21,245,000 Net Operating Income $ 87,799,000 $ 118,326,000 $ 30,527,000 Source: Salt Lake City Department of Airports. 6 Dash Cash on Hand Fund Balance as of 6/30/2020 (in millions) Balance as of 6/30/2021 (in millions) Balance as of 6/30/2022 (in millions) Unrestricted Surplus Fund *$397 $125 $164 Revenue Fund *3 15 15 Restricted PFC Fund 13 3 3 CFC Fund 3 0 1 Debt Service Reserve and Capitalized Interest Funds 220 223 412 Other Restricted Funds *28 32 373 Total $664 $398 $968 Funds Available for Operations*$428 $172 $199 Days cash on hand 1,433 424 515 Source: Salt Lake City Department of Airports. *Funds available for operations include Surplus Fund, Revenue Fund, Operating and Maintenance Reserve Fund and Renewal and Replacement Fund 7 Airline Use Agreement Rates and Charges FY22 Due or (Owe) Calculation Amount LANDING FEES Due $40,173,300 Less Net Billed (46,503,700) Net Owed to Airlines $(6,330,400) TERMINAL RENTS Due $ 76,600,600 Less Net Billed (68,699,100) Net Owed to Airlines $7,901,500 Net Owed from Airlines for the FY22 Reconciliation $1,571,100* * Amount owed from Airlines will be rolled forward into the FY24 rates. 8 Comparison of Actual Airline Revenue Revenue Category FY 2020 Actual FY 2021 Actual FY 2022 Actual Landing Fees $ 35,638,000 $ 35,995,600 $ 45,157,900 Terminal Rents 36,081,700 65,985,000 83,479,900 Airline Revenue Sharing (10,096,900)(7,710,200)(13,566,000) Support Buildings 4,421,400 4,454,200 4,346,400 Passenger Boarding Bridge 1,913,100 1,572,300 1,630,700 Fuel Farm 538,800 1,169,900 1,804,400 Remain overnight 157,800 511,100 TOTAL AIRLINE REVENUE:$ 68,653,900 $ 101,977,900 $ 123,253,000 Source: Salt Lake City Department of Airports. 9 Airline revenues represent a modest but increasing share of total operating revenues Source: Salt Lake City Department of Airports. $57,565 $61,560 $68,654 $101,978 $123,253 $165,548 $181,504 $161,326 $184,684 $258,945 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2018 2019 2020 2021 2022 Fiscal Year 2018 2019 2020 2021 2022 Airline Share of Total Revenue 34.8%33.9%42.6%55.2%47.6%