ACRP Report 58: Aviation-Industry Issue Familiarization for Part-time Airport Policy Makers December...

ACRP Report 58:Aviation-Industry Issue

Familiarization for

Part-time Airport Policy Makers

December 2011

Background information

The administration and governance of an airport can prove quite challenging to inexperienced airport managers and policy makers that serve on airport boards, commissions, authorities, or similar organizations. Airport Cooperative Research Program’s project 11/02 (Task 15) will help familiarize policy makers and new airport managers with a broad range of airport issues.

The following presentation is a companion to the ACRP Report 58: Airport Industry Familiarization and Training for Part-time Airport Policy Makers. This presentation may serve as a standalone brief overview to help familiarize the audience with airport issues or it can be viewed in a group presentation. There are notes for each slide to help the viewer (or presenter) understand the intent of each slide. Therefore, viewers and presenters should use the Power Point “Notes Page” mode. It will take 60-90 minutes to go through this presentation.

The report and this companion presentation were prepared by Delta Airport Consultants, Inc. with graphics assistance by Lyonshare Studios, LLC.

The following presentation provides information about airport issues. New airport policy makers typically receive an airport orientation briefing specifically about their airport when they come on board, followed by an airport tour. Recommended items to include in the briefing about the local airport are shown in the companion report and are:

•Airport history and mission statement•Organizational structure•Charters, by-laws, and enabling legislation•Airport finances and budget (income, expenses, reserves, and bonds/debt)•Capital improvement funding – general information•Airport statistics – activity, fuel sales, airline information•Projects – now and in the future; contract awards and procurement of professional services•Airfield operations – safety programs, aircraft rescue and firefighting, snow removal, security•Role of airport policy maker and airport management staff•Homework/take home items – annual financial report, executive summary of airport master plan, minutes of board meetings, enabling legislation, board member list, mission statement, and this ACRP primer slide presentation and/or report

Now, on to the presentation…..

General

The Airport

Financial

Airport Issues - Categories

General

1.Roles of Policy Maker and the Airport Manager

2.Principles of Governance

3.Partners and Relationships

4.Your Airport in Context

5.Understanding and Conveying the Value of Your Airport

6.A Pilot’s Perspective of the Airport

General

Roles/Responsibilities

Examples of Roles/Responsibilities

General

Governance

General

National Plan of Integrated Airport Systems“NPIAS”

General

Examples of Airport Uses and their Value

Communicate!

General

A Pilot’s Perspective

The Airport

7.Basic Elements of Your Airport

8.Your Airport in Action

9.What It Takes to Operate Your Airport

10.Planning and Developing Your Airport

11.Protecting and Preserving Your Airport and Its Environs

12.National Issues with Local Significance

The Airport

Airport Basics

The Airport

Activities at the Airport

The Airport

Finance

Administration

Planning and engineering

Landside operations

Terminal building operations

Airside operations

Staffing

Contracts

Equipment

Airports require...

Running an Airport

Safetyand

Airport Operations

Running an Airport

The Airport

Airport Development Process

Airport Master Plan

Environmental Impacts of Projects

Project Design and Construction

The Airport

Concerns

• Obstructions

• Noise

• Wildlife

Protecting and Preserving the Airport

The Airport

• Sustainable funding for development

• Changing federal regulations

• Satellite-based navigation

• Trends in aircraft development

National Issues of Local Significance

Financial

13.Sources and Uses of Operating Funds

14.Funding Capital Improvements

15.Your Airport as a Business

16.Purchasing Goods and Services for Your Airport

17.Use of Airport Revenue

Financial

• FAA Airport Improvement Program (AIP) grants

• State grants

• Passenger Facility Charge revenues (commercial service airports)

• Third party private financing

• Bonds or other forms of debts

• Local and/or airport reserve funds

How are Capital Improvements Funded?

Key Points

• Year 2010 = $3.5 Billion• Administered by FAA• Source of funds• Eligible projects• Airport Layout Plan• Based on demonstrated need• Type of funds• Grant assurances

The Airport Improvement Program “AIP”

• FAA Airport Improvement Program (AIP) grants

• State grants

• Passenger Facility Charge revenues (commercial service airports)

• Third party private financing

• Bonds or other forms of debts

• Local and/or airport reserve funds

How are Capital Improvements Funded?

Financial

Airport as a Business

• Establish rates and charges

•Use airport revenue for airport purposes

•Measure performance

•Adopt rules and regulations and minimum standards

•Have a human resources plan

•Keep practices transparent

Good Airport Business Practices

Financial

• Basic procurement principles• Goods/supplies• Professional services• Construction• Equipment• Land• Tenant services• Disadvantaged Business Enterprises

Purchasing Goods and Services

Financial

What is airport revenue?• Fees, rents, charges, and payments that the airport owner receives• Proceeds from sale or disposal of airport property• State and local aviation fuel taxes not grandfathered

How can airport revenue be used?• Capital development of airport facilities• General operating cost of the airport• Promotion of the airport• Promotion of new air service (not subsidy)

What are some examples of illegal revenue diversion?• Payments in excess of that which is fair and reasonable• General economic development• Inequitable costs charged to airport for local government services• Marketing unrelated to the airport• Rental or use of land for non-aeronautical purposes at less than fair

market value

18.What’s Expected of Airport Tenants and Users

19.Complying with Grant Assurances

20.Alternate Uses and Restrictions of Your Airport

Fire safetyAircraft registrationRemoval of disabled aircraftAircraft operating rulesUse of hangarsAccess controlCourtesy vehiclesLimos, taxisHazardous materialsSelf-fueling regulationsInsurance requirementsFlying clubs, skydivingAerial advertisingAgricultural operationsMinimum standards for commercial activities

Topics for Airport Rules and Regulations

• Exclusive rights prohibition• Maintenance of the airport• Operation of the airport• Protection of runway

approaches• Compatible land use

• Availability on fair and reasonable terms• Adherence to the Airport Layout

Plan• Use of airport revenue• Pavement preventive maintenance

Important Grant Assurances

• Aircraft perceived to be excessively noisy, large or heavy• Nighttime aircraft operations• Skydiving• Ultralight vehicle operations• Banner towing• Glider operations

Talk to FAA before considering restrictions of:

Examples of allowable airport promotion events with non-aeronautical uses:

• Air shows combined with auto show• Fly-in events along with other community activities• Renting a hangar for community events with proper

safety and security

This concludes the presentation of airport issues. The full companion report mentioned in the opening background statement contains more detailed information about each issue. The report also identifies specific references in an “Aviation Library” and includes a detailed listing of useful acronyms.

Further things for the new policy maker to do –

•Learn the relative roles of policy maker and airport manager and how you can support one another.

•Learn about the value of your airport and serve as its advocate.

•Become familiar with your airport’s governing documents and code of ethics.

•Tour your airport and learn about its activities, services, tenants, and infrastructure.

•Become familiar with your airport’s annual budget, how the airport generates revenue, and its major expenditures. Ensure there is no illegal revenue diversion

•Become familiar with your airport’s vision, capital development plans, and what measures have been taken to achieve and preserve compatible land uses.

•Learn about your airport’s rules and regulations and minimum standards.

For More Information www.TRB.org/ACRP

Information on ACRP(look for our brochures)

Search engine All research projects Project statements

(requests for proposals)

Anticipated projects ACRP publication lists

Sign-up to receive email– notification of RFPs– notification of new

publications Online forum for success stories

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