ACRP Report 58: Aviation-Industry Issue Familiarization for

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 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.

Now, on to the presentation…..
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…..

Airport Issues - Categories
General The Airport Financial This presentation covers 20 separate airport issues, organized into the four broad categories. General – things that policy makers should know about their roles/responsibilities and basic information on airports in general. The Airport – this group of issues relates to an airport, including what is on the airport, who uses it, how it is operated, how it is planned for future growth, and how it and its neighbors are protected. Financial – this group of issues includes information about airport budgets, capital improvement financing, and other financial aspects of the airport business. Rules – this group of issues discusses the many rules and regulations that govern airport activities. Next slide Rules

General Roles of Policy Maker and the Airport Manager
Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport These are the General issues we will cover. Next slide

Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport What are the relative roles of airport policy makers and airport managers? Next slide

Roles/Responsibilities
Airports are typically owned by a city, county, or other public organization, with officials appointed to serve as policy makers on an airport board, commission, authority or other local body. Successful airports have an effective working relationship between airport policy maker, and management. It is important that policy makers and management understand their respective roles and responsibilities. In general, policy makers establish broad goals and objectives for the airport. In turn, airport management implements programs aimed at achieving these goals and objectives, while operating the airport day-to-day. Airport policy making boards have several governing documents such as bylaws, a code of ethics, and an annual budget. Next slide

Examples of Roles/Responsibilities
Policy Makers Airport Management/Staff Establish policy Implement policy Set goals Run the airport day-to-day Serve as airport advocate Serve as airport spokesperson Approve plans and programs Oversee planning/construction Oversee airport management Maintain airport facilities Establish rules/regulations Enforce airport rules/regulations Select consultants and service providers Manage/administer contractors Prepare financial plans Examples of typical roles and responsibilities of policy makers and airport management are shown. Next slide

Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport Next, let’s look briefly at the principles that govern the policy maker and airport manager’s world. Next slide

Governance Members of airport governing bodies have certain principles they must abide by to help maintain public trust, discharge fiduciary duties, and ensure their actions are at all times ethical and legal. These principles are typically covered in a “Code of Ethics” that addresses things such as: -prohibited conduct including the acceptance of gifts and favors -restrictions on personal use of airport property conflict of interests related to financial matters awarding of airport contracts Other principles that govern airport boards include the disclosure of public documents and how public meetings are conducted. Airport policy makers need to be briefed by airport management or legal counsel on the local laws and code of ethics that govern their activities. Next slide

Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport Airports are typically owned by local governments; however, it is not a lonely endeavor. There are many relationships between the airport owner and other organizations. Let’s look at these. Next slide

An airport has many relationships with various users, stakeholders, industry groups, and government regulators and partners. Users, stakeholders, and industry groups all influence airport operations and plans. State aviation agencies, the Federal Aviation Administration (FAA), Transportation Security Administration (TSA), and airport advocacy industry groups are strong partners that provide technical guidance, set important standards, and in some cases fund planning and capital development. FAA’s primary responsibilities include: operating the air traffic control system; owning and operating many navigational facilities on airports; administering a multi-billion dollar airport planning and development program; certifying pilots, aircraft, and commercial airports; and maintaining specific standards for airport development. TSA is responsible for overseeing aviation security for airports serving air carrier and cargo operations. TSA also has published guidelines and recommendations for general aviation airports. Next slide

Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport Your airport of course is one of many. Let’s take a look at how each airport fits into a national system. Next slide

National Plan of Integrated Airport Systems
“NPIAS” The National Airspace System is a complex collection of air navigation, air traffic control facilities, systems, equipment, and airports located throughout the country. The U.S. Congress recognized the importance of ensuring all communities and citizens have access to air transportation by establishing this system and provides funding of its ongoing operation, maintenance, and development. This national system includes approximately 500 commercial service airports and 2,800 public-use general aviation airports that are considered in the national interest. These are identified in a National Plan of Integrated Airport Systems, or NPIAS. The NPIAS identifies needed development at each of these airports, getting much of its information from local airport master plans and state airport system plans. Airports included in the NPIAS are eligible to compete for Airport Improvement Program (AIP) grant funds for capital development. An airport’s classification as a commercial passenger airport or general aviation airport plays an important part in how FAA allocates these grant funds. More about airport grants later. General aviation airports that reduce congestion at nearby busy commercial airports are called “reliever” airports. Next slide

Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport Effective airport policy makers and airport managers understand and enjoy conveying the value of their airport to others. Next slide

Examples of Airport Uses and their Value
Business/corporate Flight instruction Agricultural Cargo Firefighting Search and rescue Mapping Traffic advisory Air ambulance/emergency medical transport Weather observation Personal/recreation Tours Power line inspection Disaster relief Drug enforcement Commercial passenger service airports obviously provide great value to airlines and their customers. However, all airports provide access to the national air system for a wide range of uses. Many corporations will not open one of their major offices or distribution/manufacturing facilities in a community unless it has a general aviation airport that can serve their corporate aircraft. Several examples of airport uses are shown. Next slide

Communicate! Promoting the airport within the community and building a positive relationship with local media are essential to achieving success for your airport. Effective community outreach programs often include several tools and topics as shown. Educate yourself about your airport’s vision, its value to the community, and who uses it. Share that information with others. Next slide

Principles of Governance Partners and Relationships Your Airport in Context Understanding and Conveying the Value of Your Airport A Pilot’s Perspective of the Airport Pilots are the most important users of an airport. Therefore, it is important to understand their perspective of the airport’s infrastructure, layout, and systems that contribute to their flying experience. Next slide

A Pilot’s Perspective What do pilots care about? They want…..
- the runway to be long enough so they can takeoff and land safely airfield geometry that meets FAA safety standards good airfield signage, lighting, and marking so they can tell where they are on the airfield and where they are going instrument approach procedures so they can land in poor visibility conditions no obstructions in the approach paths to runway ends - availability of fuel and other services Next slide

The Airport Basic Elements of Your Airport Your Airport in Action
What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance Let’s now shift to some more specific things about an airport. Next slide

What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance Let’s start with an overview of the basic elements of an airport. Next slide

Airport Basics The landside of commercial service air carrier airports and a few very busy general aviation airports typically have to accommodate the movement of a large number of automobiles, passengers and cargo, have large parking lots, garages, and often fairly complex entrance roads and circulatory roads. Commercial service airports have a terminal building with curbside activities, ticketing, concessions, baggage handling, passenger screening/security, concourses, holding areas, gates, and jetways to aircraft. A typical general aviation airport terminal building will include a service counter, waiting area, pilot’s lounge, flight planning room, and a conference room Airside features of an airport include the runway and taxiway system, aprons for aircraft parking, lighting, signage and marking, navigational aids, and weather observation equipment. Important safety features of airports include safety areas around the runways to help accommodate aircraft that overrun or veer off pavements, runway protection zones in the approaches to protect people and property from aircraft, and aircraft rescue and firefighting systems required for air carrier airports. Airports with a large amount of aircraft activity may have an air traffic control tower. Next slide

What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance Let’s take a look at your airport in action. Next slide

Activities at the Airport
Each airport has its unique financial, political, operational, and environmental challenges. But each is a place of action linking their community, people, and cargo to a national air transportation system. Airport activities can be separated into the four broad groups shown. Airline and cargo carriers decide which market they serve by weighing projected revenue against the estimated cost of providing service. Air carrier activities are normally concentrated in and around the terminal building, with aircraft maintenance facilities at a few hub airports. General aviation services are usually provided by a fixed-base operator, called FBO. FBOs are either private enterprises or airport owned and operated. A full-service FBO offers fuel, oil, maintenance services, aircraft rental/sales, charter flights, pilot training, and many flight planning services for the pilot. Government activities include air traffic control, maintenance of navigational equipment, security, customs, and federal inspection. At some airports, air traffic control is handled through a private contract rather than FAA employees. Airport owner activities include airport management, operations, maintenance, emergency preparedness, and construction. Next slide

What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance We’ve looked at the basic elements of an airport and some of the activities that take place. What are some of the things it takes to operate your airport? Next slide

Running an Airport Airports require... Finance Administration
Planning and engineering Landside operations Terminal building operations Airside operations Money Staffing Contracts Equipment The complexity of operating an airport obviously varies depending upon the type and size of airport. But all airport owners use money, staff, contracts, and equipment to operate, maintain, and develop the airport. Large airports may have a large organization to handle its financing, administration, planning/engineering, landside/terminal, and airside operations. Smaller airports may handle these with few resources. Next slide

Running an Airport Safety and Airport Operations
Just as pilots are required to receive an FAA certificate demonstrating their competency, certain airports are required to do the same. Federal Aviation Regulations Part 139 outlines the “competency” requirements for air carrier airports that have scheduled service with aircraft that have more than nine seats or unscheduled operations by aircraft with more than 30 seats. Specific requirements for these airports are outlined in the regulation. Examples of these requirements are the provision of aircraft rescue and firefighting services and an emergency plan. The FAA and some states have safety standards for all airports that include condition of pavements, safety areas, lighting, marking and signs, fueling activities, snow and ice removal, construction safety, obstructions, and wildlife control. Regardless of airport type, all should have a good airfield operations safety program that includes regular inspections and timely correction of any safety discrepancies, with a process similar to that shown. Next slide

What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance When developing the physical elements of your airport, it is important to have a thoughtful, comprehensive, and a well-coordinated plan. Let’s look more closely at airport planning and development. Next slide

Airport Development Process
The typical process for airport development is to plan the development, assess and mitigate its potential environmental impacts, design specific projects, and then construct them. A well thought out financial Airport Capital Improvement Plan, referred to as ACIP, parallels this process. Let’s step through the process shown. Some airport owners prepare or update an airport master plan with public and community involvement. The primary elements of this plan include: - inventory of existing facilities - 20-year forecasting of aviation activity for the airport - identifying facility requirements - consideration of alternatives analysis of financial feasibility overview of environmental impacts preparation of an airport layout plan (ALP) showing the 20-year proposed development Next slide

Airport Master Plan An airport layout plan, or ALP, is the basic document for an airport owner to communicate to the public, airport users, and FAA what its plan is for the future. FAA requires that all grant recipients maintain an up-to-date ALP. The ALP serves as a 1. Guide for what, where, and when certain facilities are planned for the airport; 2. A blueprint for on-airport and off-airport land use and development in accordance with FAA criteria; 3. A public record of present and future aeronautical requirements; and 4. A tool to facilitate discussion with the FAA about Airport Improvement Program (AIP) grant funds. The ALP typically is a set of drawings that includes an overall airport layout plan drawing, a more detailed layout of the terminal area, protective airport airspace surfaces on and around the airport, and an airport land use plan. Next slide

Environmental Impacts of Projects
Prior to undertaking an airport development project, the airport owner needs to make sure it meets environmental laws, regulations, and processes. FAA prescribes in detail how to assess and document a project’s impact. Several impact categories are reviewed, such as air quality, noise, wetlands, historic properties, and fish and wildlife. FAA requirements for addressing environmental impacts are based on federal law and regulations and require one of three types of documentation depending upon the project’s environmental impacts. These are: - Categorical exclusion (example: apron overlay) Environmental assessment (example: a non-controversial runway extension at a general aviation airport with little impact) Environmental impact statement (example: new air carrier runway in a large metro area) Next slide

Project Design and Construction
Assuming projects are consistent with an approved airport layout plan (ALP), have environmental approval, and funding for construction is fairly certain, airport owners proceed with preparation of detailed design and construction documents. The design process typically includes selection of a consultant (more about that later), a predesign conference, design review meetings, an engineer’s report, and preparation of construction plans and specifications. The construction phase includes bidding, contract award, actual construction, and closeout. Two important requirements during construction are SAFETY and QUALITY CONTROL. Airport safety is addressed through a “construction phasing and safety plan” that is part of the construction documents. Quality control is normally addressed through appropriate resident inspection and testing of construction materials. Next slide

What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance It is common for a community to develop around an airport and encroach on the land that is important to the airport’s long-term viability. Prevention of incompatible land uses around airports is critical because of their potential to impact airport operations and vice versa. Next slide

Protecting and Preserving the Airport
Concerns Obstructions Noise Wildlife Three areas of primary concern for both the protection and safety of an airport are the height of objects, aircraft noise impacts, and hazards created by wildlife. Tall objects such as cell towers, water tanks, wind farms, or trees that penetrate airspace where aircraft fly are obviously not appropriate. FAA’s Regulation Part 77, Objects Affecting Navigable Airspace, defines “imaginary surfaces” that generally should be kept free of penetrations. FAA will study objects proposed in these surfaces to determine if they are hazards. Local zoning and the building permit process are used to help prevent tall objects around airports. Considerable progress has been made over the past 20 years to reduce aircraft engine noise, but noise remains a point of controversy between airport owners and neighbors. Some communities have a formal noise compatibility plan in place to help minimize impacts. Significant noise impacts can be addressed with land acquisition, soundproofing, and changing flight tracks. FAA can help airport owners with noise compatibility planning. Activities on or near airports that attract wildlife such as deer and birds should be avoided or managed to prevent aircraft hazards. Many airports use fencing and employ certain vegetation practices to help. FAA has specific guidelines, recommendations, and requirements about wildlife hazards. Next slide

What It Takes to Operate Your Airport Planning and Developing Your Airport Protecting and Preserving Your Airport and Its Environs National Issues with Local Significance Proposed or changing federal programs, regulations, and Congressional actions hold the potential for financial and operational impacts on airports. Let’s look at some significant national issues that impact airports. Next slide

National Issues of Local Significance
Sustainable funding for development Changing federal regulations Satellite-based navigation Trends in aircraft development Significant national issues include: Sustainable funding for airport development and use of federal aviation tax revenues. Many airports depend heavily on federal funding for activities such as airport development, operation of federal facilities, and airport security. Local policy makers should always be aware of the status of federal authorization for aviation taxes, programs, and the annual appropriation of funding. FAA, TSA and other federal agency legislation, regulations and polices. There are often proposed changes to federal law, regulations, and polices that impact airport operations and development. These can involve safety, security, or environmental programs and can impact all airports. FAA transition toward satellite-based navigation. The “next generation” navigation system is referred to as NextGen and is transforming the entire aviation system to a satellite-based system capable of handling future aviation demand. Airports and the airport system will benefit from this transition by increasing safety, providing greater design flexibility, making better use of existing capacity, and reducing environmental impacts. Trends in aircraft development. These trends, ranging from very large wide-bodied aircraft to very light jets, can impact airport design and operations. Next slide

Financial Sources and Uses of Operating Funds
Funding Capital Improvements Your Airport as a Business Purchasing Goods and Services for Your Airport Use of Airport Revenue Let’s now look at important money and financial issues that airport owners and policy makers deal with. Next slide

Funding Capital Improvements Your Airport as a Business Purchasing Goods and Services for Your Airport Use of Airport Revenue Airports, like many organizations, have an annual budget that helps manage revenues and expenditures. Airports get their revenue from many sources, such as Airfield landing fees, aircraft parking, and fuel flowage fees Terminal concessions Airline leases Other aviation (e.g. FBO) and non-aviation leases Non-operating revenue such as sale or lease of properties Airport resources such as sub-surface minerals Two key points: 1. FAA requires that airports be as self-sufficient as possible. 2. Federal law requires that airport-generated revenue be used for airport purposes (more about this later). Now, a few things about airport expenses…. Next slide

Airport expenses normally fall into two areas: capital improvement expenses and operation and maintenance (O&M) expenses. Capital improvement expenses are generally large and relate to improvement or expansion of airport infrastructure, such as pavements, lighting, terminal buildings, and land acquisition. We’ll discuss the funding of capital improvements in more detail in a moment. O&M costs normally occur on a regular basis and are required to maintain the current operations of the airport. Shown here are several examples of O&M expenses. Next slide

Funding Capital Improvements Your Airport as a Business Purchasing Goods and Services for Your Airport Use of Airport Revenue So, how are capital improvements funded? Next slide

How are Capital Improvements Funded?
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 An airport’s Airport Capital Improvement Program (ACIP) outlines proposed funding for its development program. The ACIP identifies the cost, type of funding, and timing for each capital item. The FAA and most state aviation agencies require an annual ACIP covering five years of projects. Airport development is principally funded with the sources shown. Each of these programs has its own requirements. Let’s discuss them in more detail. Next slide

The Airport Improvement Program “AIP”
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 FAA’s Office of Airports administers the AIP through its local offices – either a regional office or Airports District Office. Ten states are Congressionally authorized to administer the AIP in lieu of FAA. These are (year 2011) : GA, IL, MI, MO, NH, NC, PA, TN, TX, and WI. Funding for the AIP is primarily derived from passenger ticket taxes and fuel taxes that flow to the Aviation Trust Fund. Congress authorizes the AIP and establishes annual appropriations. Generally, eligible projects include things like airfield pavement, lighting, signage, land acquisition, passenger terminal buildings, access roads, airfield safety projects, planning, and noise compatibility. Activities such as training, employee salaries, and non-aviation development are not eligible. Prerequisites for a grant include an up-to-date airport layout plan (ALP), environmental approval, and a demonstrated aviation need for the project. Both commercial and general aviation airports receive entitlement grant funds and can compete for discretionary funds. This is subject to Congressional changes in law. Upon acceptance of an AIP grant, an airport owner commits to several assurances that become a binding legal agreement between the airport owner and the FAA (more about this later). Next slide

How are Capital Improvements Funded?
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 We’ve discussed the AIP. What should policy makers know about the other funding sources? Most states offer an airport grant-in-aid program to provide matching funds for AIP allocations. Some state programs will also fund non-AIP items. Commercial airports are permitted to assess a fee on passengers, known as a passenger facility charge (PFC). FAA has approval authority. Airlines collect PFCs through the ticketing process and send collected funds to airport owners to finance construction of improvements. In 2010, fees ranged from $3 to $4.50 per passenger per flight segment. Some airports have enabling legislation that authorizes third-party financing of airport improvements such as hangars and cargo facilities. Issuance of bonds is a large source of capital funds, but generally limited to commercial service airports with large capital improvement needs. Some local governments allocate general funds for airport development. Also, airport revenue generated from landing fees, fuel flowage fees, and leases is used. Next slide

Funding Capital Improvements Your Airport as a Business Purchasing Goods and Services for Your Airport Use of Airport Revenue Effective airports use sound business practices to help them successfully deliver aviation services to the public. Next slide

Airport as a Business An airport’s business practices are normally driven by the airport’s vision, mission, and strategic plan. Many airport visions focus on the airport being seen as the front door to the community, a gateway to the world, and a premier provider of customer service. A typical airport mission might be to serve the aviation needs of the community – safely and efficiently. A good strategic plan establishes the direction and priorities of the airport, and often includes the elements shown. Broad objectives and goals typically flow from the individual tasks included in the airport’s strategic plan. A sound airport business practice is to strive for a budget with the airport operating as self-sufficient as possible. So, what are some good business practices? Next slide

Good Airport Business Practices
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 Establishing non-discriminatory rates and charges for the aeronautical use of airport facilities on fair and reasonable terms makes good business sense – and is one of the federal grant assurances. Charge fair market value for non-aeronautical use of the airport, e.g. a non-aviation lease of airport land. By law, revenue derived from the airport must be used solely for airport capital and operating costs. Establish standards and measure performance. Customer service is one example of when this is done. Establish clear rules, regulations, and minimum standards for those who conduct business or use airport property. Have a sound human resources plan that includes hiring practices and employee professional development. Conduct business in a transparent way. This includes codifying accounting practices, procurement of goods and services, and investment of airport funds. Next slide

Funding Capital Improvements Your Airport as a Business Purchasing Goods and Services for Your Airport Use of Airport Revenue Let’s look at how airports procure goods and services. Next slide

Purchasing Goods and Services
Basic procurement principles Goods/supplies Professional services Construction Equipment Land Tenant services Disadvantaged Business Enterprises Basic procurement principles that airports follow are: purchase quality good and services, obtain best possible prices, deliver where and when needed, and fair competition. State and local procurement requirements govern the purchase of airport supplies and other goods. Airports contract for professional services such as architects and engineers for airport planning and design. This is done through a defined process that ensures selections are quality based. Once selections are made, then fees are negotiated. Construction contractors are normally selected through an openly advertised process to seek the lowest qualified bid. There are exceptions for minor, inexpensive projects. Also, non-traditional procurement methods, such as design-build, are sometimes used for very large projects. Equipment is normally procured through open bids. Land acquisition procedures are governed by the Uniform Acquisition and Relocation Act with use of appraisals to establish fair market value. Tenant services such as FBOs, concessionaires, and rental car agencies are typically procured with competitive bids. The AIP grant program requires airport owners to establish and follow a local airport Disadvantaged Business Enterprise (DBE) program with goals for minority/DBE participation in airport development and concession contracts. Next slide

Funding Capital Improvements Your Airport as a Business Purchasing Goods and Services for Your Airport Use of Airport Revenue This presentation has mentioned a couple of times that revenue generated by the airport must be used for airport purposes. Let’s discuss that a bit more. Next slide

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 To avoid illegal diversion of revenue, it is important to understand what constitutes airport revenue, how it can be used, and know some examples of how it cannot be used. This slide is self-explanatory. Next slide

Rules What’s Expected of Airport Tenants and Users
Complying with Grant Assurances Alternate Uses and Restrictions of Your Airport Let’s move to a few issues that relate to airport rules, some created by the airport owner and some imposed on the airport. Next slide

Complying with Grant Assurances Alternate Uses and Restrictions of Your Airport Airport tenants and regular airport users need to understand what is expected of them. Next slide

Topics for Airport Rules and Regulations
Fire safety Aircraft registration Removal of disabled aircraft Aircraft operating rules Use of hangars Access control Courtesy vehicles Limos, taxis Hazardous materials Self-fueling regulations Insurance requirements Flying clubs, skydiving Aerial advertising Agricultural operations Minimum standards for commercial activities Airport owners should establish rules and regulations for airport tenants and users to help maintain safe, orderly, and efficient airport operations. Airport owners should also establish minimum standards for certain aeronautical activities conducted at the airport. These help promote uniform rates and charges, make good business sense, and contribute to airport safety and quality of service. They also help avoid non-discriminatory practices and thus promote compliance with federal prohibition of exclusive rights for aeronautical services. Shown are some of the topics normally covered in airport rules and regulations. Note that an airport owner in lieu of a private enterprise may elect to provide any or all of the aeronautical services at an airport. Regardless, it may not refuse an air carrier, air taxi, flight school, or individuals the right to fuel their own aircraft with their own personnel and equipment. Next slide

Complying with Grant Assurances Alternate Uses and Restrictions of Your Airport Airport owners agree to accept certain obligations in exchange for federal money or land. Airport owners risk loss of future federal funds and civil action if they fail to comply with these obligations. Let’s look at a few of these obligations. Next slide

Important Grant Assurances
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 Each grant typically includes more than 30 grant assurances. A few of the more important ones are shown: Do not grant or permit an exclusive right to any group or individual to conduct any aeronautical activity at the airport. However, the airport owner may exercise this right for itself. Preserve and maintain the airport in a safe and serviceable condition, operating it in a safe manner and for the benefit of the public. Prevent the growth or establishment of obstructions (reference regulation Part 77). Take appropriate action to restrict use of lands to activities compatible with normal aeronautical operations. Keep the airport available to all types, kinds, and classes of aeronautical activity on a fair and reasonable basis without discrimination. Develop, operate, and maintain the airport per latest approved airport layout plan (ALP). Use all airport revenue for the capital and operating costs of the airport. Keep airport as self-sustaining as possible. Implement a proactive pavement maintenance management program to maximize useful life of pavements. Next slide

Complying with Grant Assurances Alternate Uses and Restrictions of Your Airport Airport policy makers are sometimes asked to consider restricting the use of the airport or to disallow certain activities. They are also sometimes asked to approve the use of airport land and/or facilities for purposes not clearly related to its purpose as an airport. Generally, aeronautical uses should not be restricted unless clearly for safety or efficiency reasons. Non-aeronautical use of airport land and facilities may be warranted for revenue generation provided FAA first approves the use, fair market value is received, and the use is consistent with the approved airport layout plan (ALP). Next slide

Talk to FAA before considering restrictions of:
Aircraft perceived to be excessively noisy, large or heavy Nighttime aircraft operations Skydiving Ultralight vehicle operations Banner towing Glider operations Examples of allowable airport promotion events with non-aeronautical uses: Shown are common types of aeronautical uses that airport owners are asked to consider restricting. Also shown are examples of non-aeronautical airport promotion events with non-aeronautical activities. Airport management should coordinate details of these events with FAA. Next slide 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

Further things for the new policy maker to do –
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.

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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 notification of RFPs notification of new publications Online forum for success stories Impacts on Practice

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