Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future Mario Diaz, Director of Aviation HOUSTON.

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Mario Diaz, Director of Aviation

HOUSTON AIRPORT SYSTEM

FY2013 Core Service Assessment Work Session

February 23, 20121

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Houston Airport SystemOffice of the Director

Mario Diaz, Director

Lance Lyttle, Chief Operating Officer

Brian RinehartGeneral Manager

EFD

Perry MillerGeneral Manager

HOU

VacantGeneral Manager

IAH

Ian WadsworthChief Commercial

Officer

Kirk RummelChief Financial

Officer

Eric PottsChief Strategy &

Performance Officer

VacantChief

Development Officer

Saba AbashawlChief External Affairs Officer

2

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Houston Airport SystemDirector

$255,856,156FTE: 1483

External Affairs

$5,502,494FTE = 26

Finance

$13,781,393FTE = 51

Planning, Design &

Development

$9,992,925FTE = 87

Commercial Development

$4,919,469FTE = 27

Airport Operations

IAH

$153,951,121FTE = 838

Airport Operations

HOU

$40,017,530FTE = 284

Airport Operations

EFD

$4,546,122FTE = 29

Airport Marketing

International Affairs & Development

Media Relations

Public Relations

Governmental Affairs

Community Relations

Financial Planning & Analysis

ReportingBudgetingAccountingDebt Issuance/ Management

Planning Design Construction Project

Management Contract

Administration Asset

Management

Lease Negotiation &

Management Concessions Rental Car Revenue

Growth Property

Development Real Estate

Purchase & Sale

Parking Management

Air Service Development

Operations Maintenance Security

Operations Maintenance Security International

FIS Ground

Transportation

Operations Maintenance Security Ground

Transportation

Corporate Strategy &

Performance

$22,159,021FTE = 134

Strategy Business

ProcessReengineering

Information Technology Services

Core Competencies Supply Chain

Management OBO Support Talent Management Employee

Engagement Programs

Social Operating Mechanisms

Organizational Development

3

COH Mayor’s Office/City Council Relations Team Leadership Strategy Coordination Motivation Safety Management Systems Auditing

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

4

Enterprise Fund of the City

• Fully self-sustaining

• No Local, State or Federal Tax Support

•Federal Regulations Limiting Use of Revenues to the Airport

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

William P. Hobby Airport (HOU)Medium Commercial HUBDomestic air service with a major low cost carrier presenceMajor customer: Southwest Airlines37th - US Ranking in Passengers (ACI)Passengers 9.8 MMOperations 217 K

George Bush Intercontinental Airport (IAH)

Large Commercial HUBInternational passenger & air cargo gatewayMajor customer: United Airlines

7th - US Ranking in Passengers (ACI)Passengers 40.1 MMDomestic: 31.5 MMInternational: 8.6 MMOperations 529 KTons of Cargo 455 KDomestic: 214 KInternational: 241 K

5

Airports in the System

Ellington Airport (EFD)Joint Use FacilityGeneral AviationNASAMilitary

Total Passengers IAH 40.1MM Trend -0.9% Total Passengers HOU 9.8MM +8.7%

Total Passengers HAS 49.9MM Trend +0.9%

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

6

Operations & Capital Development

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

FY2012 Operating RevenuesFY2012 Budget $417 MM

(Amounts expressed in $000’s)

7

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

FY2012 Non-Operating Revenues FY2012 Budget $92.6 MM

(Amounts expressed in $000’s)

8

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

FY2012 Operating ExpensesFY2012 Budget $430.7 MM

(Amounts expressed in $000’s)

$248,063

$70,058

$23,143

$5,500

$255,471

$70,075

$23,385

$34,579

9

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

10

FY12-16 Capital Improvement ProgramFY2012 Budget $874 MM

(Amounts expressed in $000’s)

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

11

HAS Debt Service Coverage

: Coverage = Ratio of Total Revenue to Debt Service: Decline in coverage indicates declining revenue, increased expense, increased debt service or a combination of two or all three.

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

FY2012 Budgeted Positions

12

FY2011 Funded Positions 1,560 FY2011 Vacancy Factor 80 FY2011 Total Positions 1,640 May 2011 Position Reduction Administration (47)IAH (112)HOU (42)EFD (2)Subtotal (203)FY2012 1,437 Security Guard In-sourcing 66 FY2012 Proposed Positions 1,503 FY2012 Vacancy Factor (20)FY2012 Budgeted Positions 1,483

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Director’s Office

13

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

George Bush Intercontinental Airport (IAH)

14

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

William P. Hobby Airport (HOU)

15

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Ellington Airport (EFD)

16

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Finance

18

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

External Affairs

19

Build a High Performance Organization | Let’s Go Global | Restore Facilities to Opening Day Fresh | Fund the Future

Planning, Design & Construction

21

Categories:

Mark with F, S, CC, CO

or CA if applicable.

Annual Projected Personnel

Cost

Annual Projected

Supplies CostTotal Annual

Cost Man

date

d

Dir

ect

Serv

ice

Adm

inis

trati

ve

Gen

eral

Fun

d

Spec

ial R

even

ue F

und

Ente

rpri

se F

und

Supp

orte

d by

Dir

ect

Reve

nue

(fee

s, fi

nes,

etc

.)

Gra

nt/O

ther

Fun

d

Planning, Design & Construction 8,316,343 1,676,582 9,992,925 87 F/CA X X XDesign Services 1,430,655 481,457 1,912,112 17 F/CA X X X

Planning 1,302,168 61,027 1,363,195 12 F/CA X X XConstruction 4,098,016 1,079,861 5,177,877 42 F/CA X X X

Project Control 1,485,504 54,237 1,539,741 16 F/CA X X X

Activities

($ Thousands)

Annual Projected

FTEs

Mark with (X) if applicable.

Mandated - Required by federal (F) or state law (S), city charter (CC), city ordinance (CO) or contractual agreement (CA). Direct service - Service provided to public. Administrative - Provides support to service delivery.

List all activities (some may not fall under mandated, direct service, or administrative). Only check one category. Check all funding sources that apply ($ per funding source can be entered instead of an X).

Projected costs and FTEs associated with activities may be listed under broad, higher-level groupings to correspond with budget cost center descriptions. This may be necessary if you cannot efficiently allocate cost to the activity level.Please break down actual activities underneath broad, higher-level descriptions.