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Airport Sponsor Assurances Leasing/Rents and Fees Policy

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1 Airport Sponsor Assurances Leasing/Rents and Fees Policy
Minimum Standards Airport Business Planning Moderated by: Jeff A. Kohlman Principal Aviation Management Consulting Group

2 Airport Sponsor Assurances
Background on Assurances 2

3 Background on Assurances
To secure Airport Improvement Program (AIP) grant funds, an airport sponsor is required to give certain assurances to the FAA known as the Airport Sponsor Assurances. In essence, airport sponsors must agree to comply with the Airport Sponsor Assurances (there are currently 39 of them) as a condition of receiving AIP grant funds.

4 Background on Assurances…
The Airport Sponsor Assurances provide a means for the federal government to ensure that public use airports are developed, operated, and maintained in a safe, secure, efficient, compatible, and compliant manner.

5 The 39 Assurances 2. Responsibility/Authority of the Sponsor
1. General Federal Requirements 2. Responsibility/Authority of the Sponsor 3. Sponsor Fund Availability 4. Good Title 5. Preserving Rights and Powers 6. Consistency with Local Plans 7. Consideration of Local Interest 8. Consultation with Users 9. Public Hearings 10. Air and Water Quality Standards 8

6 11. Pavement Preventative Maintenance
The 39 Assurances… 11. Pavement Preventative Maintenance 12. Terminal Development Prerequisites 13. Accounting System, Audit, and Record Keeping Requirements 14. Minimum Wage Rates 15. Veteran’s Preference 16. Conformity to Plans and Specifications 17. Construction Inspection and Approval 18. Planning Projects 19. Operation and Maintenance 8

7 The 39 Assurances… 20. Hazard Removal and Mitigation
21. Compatible Land Use 22. Economic Nondiscrimination 23. Exclusive Rights 24. Fee and Rental Structure 25. Airport Revenues 26. Reports and Inspections 27. Use by Government Aircraft 28. Land for Federal Facilities 29. Airport Layout Plan 8

8 The 39 Assurances… 30. Civil Rights 31. Disposal of Land
32. Engineering and Design Services 33. Foreign Market Restrictions 34. Policies, Standards, and Specifications 35. Relocation and Real Property Acquisition 36. Access By Intercity Buses 37. Disadvantaged Business Enterprises 38. Hangar Construction 39. Competitive Access 8

9 Airport Sponsor Assurances
Discussion of Key Assurances 9

10 Airport Sponsor Assurance 1
General Federal Requirements

11 General Federal Requirements
Federal Legislation Executive Orders/Orders Airports Compliance Handbook Federal Regulations 14 CFR Parts 13 and 16 Office of Management and Budget (OMB) Circulars FAA Advisory Circulars Exclusive Rights Minimum Standards

12 Airport Sponsor Assurance 22
Economic Non-Discrimination 12

13 Economic Non-Discrimination
Sponsor will make its airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds, and classes of aeronautical use.

14 Economic Non-Discrimination…
Each commercial aeronautical activity (operator) shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other such operators making the same or similar uses of the airport and utilizing the same or similar facilities.

15 Economic Non-Discrimination…
Each commercial aeronautical activity (operator) shall furnish services on a reasonable and not unjustly discriminatory basis to all airport users. This provision shall be included in the agreement with the operator and shall be enforced by the airport sponsor.

16 Economic Non-Discrimination…
Terms and Conditions of Use Airport sponsor may establish reasonable and not unjustly discriminatory conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport.

17 Economic Non-Discrimination…
Terms and Conditions of Use... Sponsor may prohibit or limit any type, kind, or class of aeronautical use. Must be necessary for safe operation of “airport”. OR Must be necessary to serve the civil aviation needs of the “public”. FAA must concur with sponsor.

18 Economic Non-Discrimination…
Commercial Aeronautical Activity by Sponsor Sponsor may engage in competitive commercial aeronautical activity. Subject to same conditions as applicable to competing contractors or concessionaires

19 Airport Sponsor Assurance 22
Economic Non-Discrimination Self-Service

20 Self-Service Airport sponsor will not exercise or grant any right or privilege which operates to prevent any person operating aircraft on the airport from performing any services on its own aircraft with its own employees and equipment that it may chose to perform including, but not limited to, maintenance, repair, and fueling of aircraft.

21 Airport Sponsor Assurance 23
Exclusive Rights

22 Prohibition against exclusive rights
Airport sponsor will permit no exclusive right for the use of the airport by any person providing, or intending to provide, aeronautical services to the public. Definition of an exclusive right Any power, privilege or right excluding or debarring another from enjoying or exercising a like power, privilege, or right.

23 How is an exclusive right conferred?
Exclusive Rights… How is an exclusive right conferred? By express agreement By the imposition of unreasonable terms, conditions, and standards By any other means May be conferred on one or more parties

24 FAA policy on exclusive rights
Granting an exclusive right… Restricts the opportunity to engage in aeronautical activity on a federally funded airport Limits the usefulness of federally funded airports Deprives the public of the benefits of competitive commercial enterprise

25 Proprietary Exclusive Right
Exclusive Rights… Proprietary Exclusive Right Airport sponsor may engage in any commercial aeronautical activity and deny same rights to others without violating prohibition. Only using the airport sponsor’s employees, equipment, and resources

26 Single Operator is OK if...
Exclusive Rights… Single Operator is OK if... It would be unreasonably costly, burdensome, or impractical for more than one FBO to provide aeronautical service(s). AND Allowing more than one FBO to provide service(s) would require the reduction of space leased under an existing agreement.

27 Airport Sponsor Assurance 24
Fee and Rental Structure

28 Fee and Rental Structure
Airport sponsor will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining under the circumstances existing at the particular airport.

29 Airport Sponsor Assurances
Enforcement/Compliance 29

30 Enforcement/Compliance…
PART 13 Informal complaint Determination made by FAA Airport District Office (ADO) or Region PART 16 Formal complaint Determination made by Director (Washington, DC or FAA HQ) 3

31 Airport Sponsor Assurances
Question and Answer Airport Sponsor Assurances Please identify… Yourself, your position (title), and your organization

32 Primary Guiding Documents...
GENERAL (UMBRELLA) PROVISIONS LEASING/RENTS AND FEES POLICY OCCUPY MINIMUM STANDARDS RULES AND REGULATIONS DEVELOPMENT GUIDELINES ENGAGE USE DEVELOP

33 Introduction (Overview)
Leasing/Rents and Fees Policy Introduction (Overview)

34 Leasing/Rents and Fees Policy…
Definition An approved document that sets forth the policies for leasing airport land and improvements and outlines the process for establishing and adjusting rents and fees

35 Leasing/Rents and Fees Policy…
Major Sections Introduction Leasing Land or Improvements Agreements Rents and Fees (Setting and Adjusting)

36 Leasing/Rents and Fees Policy Leasing Land & Improvements

37 Leasing Land or Improvements
New leases Application Negotiate (key terms and conditions) Memorandum of Understanding (MOU) Lease agreement Approval process Issue an RFQ/RFP (competitive process)

38 Leasing Land or Improvements
Existing leases Upon expiration Extend (or renew) existing lease agreement Negotiate new lease agreement Issue an RFQ/RFP

39 Leasing/Rents and Fees Policy
Agreements

40 Agreements Premises Aviation (aeronautical) use
Commercial Products, services, and facilities Mandatory, optional, and additional Non-commercial Non-aviation (aeronautical) use Restrictions

41 Agreements... Term Base term Options Capital investment Minimum
Leasehold improvements Reversion of improvements Minimum Maximum

42 Agreements... Subleasing Transfer of interest Permitted Not permitted
Consent required Not permitted Approval required Transfer of interest Assignment Change in majority ownership Encumbrance

43 Agreements... Responsibilities Condemnation Relocation Sponsor
Operator (triple net lease) Maintenance, utilities, insurance, and taxes Condemnation Relocation

44 Leasing/Rents and Fees Policy

45 Rents and Fees FAA requirements Reasonable
Market rents Goal of being as self-sustaining as possible given the circumstances that exist Methodology (general aviation) Flexible approach Reasonable methods

46 Rents and Fees... Establishing rents Methodology Negotiation
Rent Study Appraisal

47 Rents and Fees... Negotiation
The act or process of dealing with another to reach an agreement A discussion intended to produce an agreement The activity or business of negotiating an agreement; coming to terms

48 Rents and Fees... Negotiation… Encouraged by the FAA
The essence of a “market” transaction… Open market… Buyer and seller each acting prudently and knowledgeably… Price not affected by undue stimulus

49 Rents and Fees... Establishing rents… Rent Study Streamlined approach
Rental rates for similar aeronautical land and/or improvements at similar (or comparable) airports are analyzed to derive an appropriate rental rate Also, consider national, regional, and competitive airports

50 Rents and Fees... Establishing rents… Rent Study (process)
Identification of comparable “airports” Profile of the subject airport Identification of comparable “leaseholds” Similar land and/or improvements and use Commercial - FBOs or SASOs Non-Commercial Use of on-airport comparables Compilation and analysis of data Segregate rent (by component)

51 Identification of comparable “airports”
Rents and Fees... Identification of comparable “airports” Key elements Infrastructure (number, configuration, and capacity of runways and taxiways) Approaches (precision verses non-precision) Control tower Number and type of aviation businesses Amount of land available for development (and related land use considerations) Type of market and number of airports in market Activity levels (based aircraft, aircraft operations, and fuel volumes)

52 Identification of comparable “leaseholds”
Rents and Fees... Identification of comparable “leaseholds” Key elements Use (commercial verses non-commercial) Size (usable verses unusable area) Location and access (landside and airside access to/from the leasehold, airport infrastructure, and utilities) Lease terms and conditions Type, quality, condition, and functional utility or limitations of the land Are there any restrictions on the development of land, the availability of utilities, and the ability of the land to support the aircraft that normally frequent the airport?

53 Segregate Rent (By Component)
Rents and Fees... Segregate Rent (By Component) “Real estate” Unimproved (raw) land Improved land (with access and infrastructure to the “lease” line) Site improvements (ramp/apron areas) Facilities (terminal building, hangars, office, and shop space) “Non-real estate” (business) Percentage rents (gross receipts)

54 Consultant qualifications
Rents and Fees... Consultant qualifications Knowledge and experience Appropriate for the work being performed Consultant instructions Dispute resolution process

55 Rents and Fees... Appraisal
An appraisal is typically performed when a “value” is desired or required to facilitate the sale, acquisition, or financing of airport property In some cases, a value may be used (or may be required by the lease agreement) to calculate rent

56 Rents and Fees... Appraisal...
Can be used to determine the value of the interest held by a lessee (leasehold interest) or lessor (leased fee) in land and/or improvements Leasehold interest Leased fee estate

57 Rents and Fees... Leasehold interest Leased fee estate
“The interest held by the tenant (lessee) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.” Leased fee estate “The interest in a property that remains with the owner (lessor) after the right to use and occupy the property has been conveyed to another (this right is usually granted by a lease for a specific period of time).”

58 Rents and Fees... Adjusting rents Methodology
Mechanisms (what basis will be utilized) Negotiation Fixed Index Consumer Price Index (CPI) Producer Price Index (PPI) Airport Economic Index (AEI) Rent Study Combination Alternating

59 Rents and Fees... Adjusting rents Frequency (how often?)
Regular (periodic) adjustments throughout the lease term Whenever an option is exercised If options are granted Whenever the lease term is extended Capital investment translates into term

60 Rents and Fees... Fees Why (what’s the purpose)
Methodology to set (and adjust) fees Cost center (compensatory) approach Recover costs allocated to general aviation Cross check fees against the market Comparable and competitive airports Type of fees Percentage of gross receipts Fuel flowage fees Landing fees Ramp fees Permit fees Other fees

61 Rents and Fees... Adjusting Fees How often (frequency) When Adjustment
Annually When Coincide with budget year Adjustment Up and down? Floors and ceilings (caps)? Minimum Annual Guarantee? 61

62 Rents and Fees... Adjusting Fees How often (frequency) When Adjustment
Annually When Coincide with budget year Adjustment Up and down? Floors and ceilings (caps)? Minimum Annual Guarantee? 62

63 Leasing/Rents and Fees Policy
Through-The-Fence

64 Through-The-Fence Definition
The airport sponsor grants an off-airport (or a through-the-fence) operator access to the airport (primarily to the airport’s runways and taxiways) from the operator's (fee simple) property located adjacent to the airport.  64

65 Important Considerations
Through-The-Fence Important Considerations Identify the boundaries of the fee simple property from which access to the airport is being provided (or granted). Identify access points from the subject property to the airport. Require access controls including fencing, gates, signage, markings, and lighting.  65

66 Important Considerations (con’t)
Through-The-Fence Important Considerations (con’t) Require compliance with the airport’s policies, standards, rules, regulations, and directives. Require payment of airport rents and fees. Require that land uses (and related development and/or improvements on the subject property) are compatible with the airport and airspace. 66

67 Important Considerations (con’t)
Through-The-Fence Important Considerations (con’t) Not be transferrable to any party. Not be extended to any other property (other than the subject property). Require that the agreement be subordinate to the airport assurances and any other federal, state, and/or local obligations. 67

68 Leasing/Rents and Fees Policy
Questions and Answers Leasing/Rents and Fees Policy Please identify… Yourself, your position (title), and your organization

69 Introduction (Overview)
Minimum Standards Introduction (Overview)

70 Minimum Standards Definition
The “minimum standards (requirements) to be met as a condition for the right to conduct an (commercial) aeronautical activity on the airport” This is consistent with the FAA’s definition

71 Minimum Standards... Purpose
To provide a reasonable opportunity, without unlawful discrimination, to applicants to qualify, or otherwise compete, to occupy available airport land or improvements and engage in authorized (commercial) aeronautical activities at an airport

72 Minimum Standards... Most importantly…
By providing (and enforcing) consistent threshold requirements (for engaging in activities at an airport), Minimum Standards level the playing field and promote fair competition among operators Minimum “ante”

73 Minimum Standards... Major Sections Introduction General Requirements
Fixed Base Operator (FBO) Specialized Aviation Service Operators (SASO) General Aviation Permit General requirements – security section.

74 Minimum Standards General Requirements

75 Experience/Capability Agreement Payment of Rents, Fees, and Charges
General Requirements Experience/Capability Agreement Payment of Rents, Fees, and Charges Leased Premises Facility Maintenance Products, Services, and Facilities Licenses, Permits, Certifications, and Ratings Employees Icon means updated information

76 General Requirements…
Aircraft, Equipment, and Vehicles Hours of Activity Security Insurance Indemnification and Hold Harmless Enforcement Taxes Multiple Activities Security – outline notes of what’s included

77 Fixed Base Operator - FBO
Minimum Standards Fixed Base Operator - FBO

78 Fixed Base Operator Scope of Activity Leased Premises Fuel Storage
Fueling Reports Fueling Equipment Other (Ground Support) Equipment Hours of Activity Employees Licenses and Certification Disabled Aircraft Removal Scope of activity – expand. What types of services do they provide. What defines an FBO at your airport? Maintenance, required? What type of Maintenance?

79 Specialized Aviation Service Operator - SASO
Minimum Standards Specialized Aviation Service Operator - SASO

80 Specialized Aviation Service Operator
Definition Leased Premises Licenses and Certifications Employees Equipment

81 Specialized Aviation Service Operator
Aircraft Maintenance Operator Avionics or Instrument Operator Aircraft Rental or Flight Training Operator Aircraft Charter or Management Operator Aircraft Sales Operator Aircraft Storage Operator Other Commercial Aeronautical Activities Temporary Specialized Aviation Service Operator

82 General Aviation Permit
Minimum Standards General Aviation Permit

83 General Aviation Permit
Application Approval Process Permit Validity (Duration) Assignment or Transferability Temporary or Special Use Fees Non-Commercial Entities

84 Questions and Answers Minimum Standards Please identify…
Yourself, your position (title), and your organization

85 Strategic Business Plan

86 Strategic Business Plan
A Strategic Business Plan (SBP) is an all encompassing document that conveys the specific goals, objectives, and tactics that need to be achieved to best position the airport for success in the future

87 Strategic Business Plan…
STRATEGIC PLAN MASTER PLAN BUSINESS PLAN Each element works in concert with the others

88 Strategic Business Plan…
On a macro level, the SBP begins by answering the key questions: Where is the airport today? Point A (here) Where do you want the airport to be tomorrow Point B (there)

89 Strategic Business Plan…
On a micro level, the SBP answers the question: How is the airport going to get there? What needs to happen to get from Point A (here) to Point B (there)?

90 Strategic Business Plan…
In the end, the SBP: Communicate mission, vision, and values Establishes the goals and objectives Conveys a series of tactics (or work plans) Provides a framework for making decisions today (and in the near term) that will have an impact on the airport tomorrow (in the future)

91 Importance and Value of the SBP
Why is it important to have an SBP? “A good plan is like a road map: it shows the final destination and usually the best way to get there.” H. Stanley Judd – American Author “If you don’t know where you’re going, you’ll probably end up somewhere else [and wonder how you got there].” Laurence J. Peter – Educator and Author “Failure to prepare is preparing to fail.” Benjamin Franklin

92 Importance and Value of the SBP…
Having a SBP is one of the best ways to achieve and maintain success The definition of success…Achieving something “planned” or achieving a favorable or desired outcome “Men never plan to be failures; they simply fail to plan to be successful.” William A. Ward

93 Importance and Value of the SBP…
Orientation (proactive vs reactive)? Are you thinking about the future? Are you making plans for the future? Are you taking action today that will have an impact on the airport tomorrow (in the future)? or…

94 Importance and Value of the SBP…
Orientation (proactive vs. reactive)? Do you spend an inordinate amount of time… Fighting fires (reacting)? Dealing with problems “after” the fact (reacting)? Does your day remind you of a ballet or a hockey game?

95 Strategic Plan

96 Strategic Business Plan…
STRATEGIC PLAN MASTER PLAN BUSINESS PLAN

97 A Strategic Plan is visionary, conceptual, and directional…
It defines the future of the organization and formulates a “flight plan” to help guide the organization from its current state (here) to its future vision (there) It also provides a system to determine when the organization has “arrived”

98 Key Aspects – Strategic Plan
1. Assesses the industry and the market from a macro to micro perspective Beginning with the entire industry Ending with the local market “Before you build a better mousetrap, it helps to know if there are any mice out there [and if so, what you know about them].” Anonymous

99 Key Aspects – Strategic Plan
2. Identifies key stakeholders and the… Role they play Responsibilities they have Potential contribution they can make to the success of the organization 3. Identifies the organization’s strengths, weaknesses, opportunities, and threats

100 Key Aspects – Strategic Plan
4. Describes the organization’s mission, vision, and values 5. Identifies the organization’s short, medium, and long term strategic goals and objectives 6. Defines the organization’s key performance targets and metrics to measure success

101 Key Aspects – Strategic Plan
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis This analysis isolates and properly categorizes real and/or perceived strengths and weaknesses of an organization (from an “internal” perspective) and opportunities and threats (from an “external” perspective)

102 Key Aspects – Strategic Plan
SWOT Analysis… Strengths (Internal) Items accomplished particularly well or unique assets (especially, in comparison to competitive/comparable organizations) Need to be preserved/build upon Weaknesses (Internal) Items not accomplished particularly well, that hinder/prevent desired performance, or are lacking or needed Need to be addressed/remedied

103 Key Aspects – Strategic Plan
SWOT Analysis Opportunities (External) Items that could positively affect or impact accomplishment and/or achievement of mission and/or vision Need to seize them/capitalize on them Threats (External) Items that could negatively affect or adversely impact accomplishment and/or achievement of mission and/or vision Need to manage/eliminate them

104 Key Aspects – Strategic Plan
Mission Purpose (of the organization) Vision Picture (of what the organization aspires to be) Values Guidelines (for the journey)

105 Key Aspects – Strategic Plan
Vision… It must be: Leader initiated Cast a vision Shared Supported Comprehensive Positive and inspiring Reaching Challenging

106 Key Aspects – Strategic Plan
Vision… Some examples… “A telephone in every home.” Bell Telephone “An affordable car for every family.” Ford Motor Company “A man on the moon by the end of the decade.” John F. Kennedy NASA

107 Key Aspects – Strategic Plan
Values… “It's not hard to make decisions when you know what your values are.” Roy Disney (American Film Writer, Producer, Walt Disney Nephew)

108 Key Aspects – Strategic Plan
The Strategic Plan: Provides the foundation for (and drives the development of) the other elements of the SBP Master Plan Business Plan At a minimum, every airport needs a Strategic Plan Without it, the other elements of the SBP cannot be developed

109 Master Plan

110 Strategic Business Plan
STRATEGIC PLAN MASTER PLAN BUSINESS PLAN

111 Master Plan A Master Plan establishes the strategies, objectives, and timelines (provides a “blueprint”) for the short, medium, and long term development of the airport It is as much an assessment of current infrastructure capacity as it is a projected outlook of future demand and related infrastructure requirements

112 Business Plan

113 Strategic Business Plan (SBP)…
STRATEGIC PLAN MASTER PLAN BUSINESS PLAN

114 Business Plan A Business Plan is:
A tactical management tool that carries the Strategic Plan and Master Plan to each functional area of the organization A department-level action plan that is driven by (and aligned with) the Strategic Plan and the Master Plan

115 Business Plan A Business Plan…
Introduces a logical and disciplined structure that drives the day-to-day operational and managerial activities of the organization Improves and enhances the organization’s ability to achieve the goals and meet the objectives set forth in the Strategic Plan and Master Plan

116 Key Aspects – Business Plan
1. Ownership/governance structure 2. Organizational structure 3. Roles and responsibilities of key employees (and outside advisors) 4. Policies, procedures, and systems 5. Products, services, and facilities 6. Assets 7. Historical financial performance Budget 9. Implementation (work) plan

117 Key Aspects – Business Plan
Jim Collins Good to Great He/his team studied 1,435 “good” companies 40 years of performance They identified 11 “great” companies Sustained performance for a minimum of 15 years Averaged cumulative stock returns ~7 times the general market

118 Key Aspects – Business Plan Element…
Jim Collins Good to Great… Are the right people on the bus? Are they sitting in the right seats? Are the wrong people off the bus? Are you soaring with eagles or working with turkeys?

119 Key Aspects – Business Plan Element…
Jim Collins… Good to Great… The hedgehog concept (living and working in the sweet spot) Best At Economics Passion For

120 Best Practices Approach

121 Best Practices Approach
Development The SBP must be methodically developed Each element drives the others

122 Best Practices Approach…
STRATEGIC BUSINESS PLAN STRATEGIC PLAN Market Assessment SWOT Analysis Mission, Vision, and Values Goals and Objectives MASTER PLAN Inventory Forecasts Capacity Analysis Concept, Alternatives, and Development Plans BUSINESS PLAN Ownership (Governance) Management Plan Operations Plan Financial Plan MARKETING PLAN Marketing Plan PUBLIC RELATIONS PROGRAM Public Relations Plan

123 Best Practices Approach…
The development process can be complex Airports are diverse Vary in size, scope, and magnitude, etc. The people who are involved: Have diverse backgrounds, experiences, and interests Typically view strategic business planning from a wide variety of perspectives

124 Best Practices Approach…
It is critical to: Identify and understand influencing factors Internal and external Solicit input from stakeholders On-airport and off-airport Consult/use available resources Utilized a structured development and review process

125 Best Practices Approach…
Most importantly, it is critical to get buy-in (right from the beginning) Educate… educate… educate! You need a game plan (going in) You need to manage the planning process – not let the process manage you Communicate… communicate… communicate! Using the “baby porridge” approach

126 Best Practices Approach…
The process can be more important (and more beneficial) than the final work product “It's not the plan that is important, it's the planning.” Graeme Edwards

127 Best Practices Approach…
We are all in this together… Airport Government Agencies Sponsor Aviation Businesses Customers Users Vendors and Suppliers Community Businesses

128 Best Practices Approach…
Implementing the SBP puts “theory into practice” This is “where the rubber meets the road” Implementation.. Identifies responsible parties Assigns tasks Establishes specific milestones and deadlines Measures progress (goals and objectives)

129 Best Practices Approach…
Without an implementation plan, the SBP is only words on paper “The method of the enterprising is to plan with audacity and execute with vigor.” Christian Nevell Bovee (American Author, Lawyer, )

130 Best Practices Approach…
Goals, Objectives, and Tactics (Work Plans) Goals A general statement of a desired result or the level of attainment that needs to be reached to fulfill the mission or vision Objectives The objectives that need to be met to achieve a desired goal Tactics (Work Plans) The specific actions that need to be accomplished to achieve a desired objective

131 Best Practices Approach…
Goals, Objectives, and Tactics (Work Plans) Each element of the SBP has goals Each goal has objectives Each objective has work plans (tactics) Each work plan addresses the 6 ws Who, what, when, where, why, and how? The combination (consolidation) of all elements, goals, objectives, and work plans (organized by priority) provides the foundation of a comprehensive (all encompassing) SBP

132 Best Practices Approach…
Plan, Action, Check (PAC) We have made a plan We have taken action We need to check the result Have we achieved the desired outcome? If not… What is the variance (between the plan and the result)? What is the reason for the variance? What adjustments need to be made?

133 Best Practices Approach…
Plan, Action, Check (PAC)… If the desired result (outcome) has not been achieved, figure it out (what is the reason), make adjustments (tweak the plan), and move on How do you eat an elephant? One bite at a time!

134 Best Practices Approach…
The SBP is a living document It should be… Consulted regularly Utilized to maintain focus and measure progress Reviewed on a periodic basis (top to bottom) Updated to reflect changes in the industry, the market, the airport, and the organization

135 Resources

136 Resources for Master Planning
Resources for strategic planning, marketing, and performance measures/indicators (for airports) The Airport Cooperative Research Program (ACRP) has commissioned projects in each of these areas Resources for Master Planning FAA ACs and others

137 The ACRP has commissioned three projects including:
Resources… The ACRP has commissioned three projects including: Project “Guidebook for Strategic Planning in the Airport Industry” Project “Marketing Guidebook for Small Airports” Project “Airport Performance Measures/Indicators (Metrics)”

138 Resources… The missing link is airport business planning – very few resources available This is highly problematic – especially for GA airports To address the missing link, the ACRP recently initiated a fourth project – ACRP “Guidebook for Developing General Aviation Airport Business Plans”

139 Airport Cooperative Research Program
Background Airport Cooperative Research Program Guidebook for Developing General Aviation Airport Business Plans (Project 01-17) Focus Groups Surveys Case Studies Guidebook (with accompanying DVD and tools) Started: June 2010 Finish: March 2012 139

140 Hope you have a better understanding of:
Closing Hope you have a better understanding of: Key elements of a SBP Key aspects of each element Importance and value of having a SBP Best practices approach Developing, implementing, and evaluating an SBP Available resources

141 Business Planning (and all other topics)
Questions and Answers Business Planning (and all other topics) Please identify… Yourself, your position (title), and your organization Jeff Kohlman 9085 East Mineral Circle, Suite 315 Centennial, CO (303) (phone) (303) (facsimile)

142 Thank you for attending today’s session.
Enjoy the rest of the conference and have a safe trip home!


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