Module 3 - Airport Capital Development Flashcards by Joseph Carney

What is the Airport Planning Process?

It is an interdisciplinary process that is intended to result in organized, cohesive, and cost-effective airport development, subject to financial, environmental, and other constraints.

How well did you know this?

Not at all

Perfectly

What is a CIP Capital Improvement Plan?

list of planned capital improvements, their cost, their funding plan, and cash flow funding requirements.

How well did you know this?

Not at all

Perfectly

What is the Master Planning Process?

A long-range planning document that generally inventories existing facilities, forecasts aviation demand activity; determines facility requirements at certain milestones in activity; creates development alternatives to meet the forecast demand; and recommends a preferred development alternative using holistic evaluation criteria.

How well did you know this?

Not at all

Perfectly

What are the major parts of a Master Plan?

a. Preplanning
b. Public Involvement
c. Environmental Considerations
d. Existing Conditions
e. Aviation Forecasts
f. Facility Requirements
g. Alternatives Development and Evaluation
h. Airport Layout Plans
i. Facilities Implementation Plan (CIP)
j. Financial Feasibility Analysis
k. Sustainability

How well did you know this?

Not at all

Perfectly

What is a Master Plan Horizon?

20 years

How well did you know this?

Not at all

Perfectly

When are Master Plans required to be updated?

Periodically, when major changes in the airport or its surroundings occur, or in connection with significant federal funding requests.

How well did you know this?

Not at all

Perfectly

How long does it take for a normal Master Plan to be complete?

Start to finish, usually 2 years.

How well did you know this?

Not at all

Perfectly

What is the objective of a Master Plan?

To provide cost-effective and realistic development that meets aviation demand while ensuring that it is compatible with the environment, community development, other transportation modes, and other airports.

How well did you know this?

Not at all

Perfectly

Does a Master Plan require public consultation?

Yes

How well did you know this?

Not at all

Perfectly

What are some key data points for the inventory of existing inventory?

Age of buildings, Pavement Condition Index, size of apron, number & type of aircraft, number of FBOs.

How well did you know this?

Not at all

Perfectly

What produces long-term forecasts of aviation demand?

Aviation Activity Forecast
12. What is a PAL? Planning Activity List, also known as a Trigger

How well did you know this?

Not at all

Perfectly

What is a Federal Airport Capital Improvement Program (ACIP)?

A tool that serves as the primary planning tool for systematically identifying, prioritizing, and assigning funds to critical airport development and associated capital needs for the National Airspace System (NAS).

How well did you know this?

Not at all

Perfectly

What FAA Order covers the ACIP?

FAA Order 5100.39A

How well did you know this?

Not at all

Perfectly

Are Capital Projects subject to Environmental Review?

Yes, under the National Environmental Policy Act (NEPA) of 1969.

How well did you know this?

Not at all

Perfectly

What other FAA Orders provide guidance for NEPA?

FAA Order 1050.1E “Environmental Impacts: Policies and Procedures”, and FAA Order 5050.4B “National Environmental Policy Act (NEPA) Implementing Instructions for Airport Actions”.

How well did you know this?

Not at all

Perfectly

What are the two levels of Environmental review?

Environmental Assessment (EA), and Environmental Impact Statement (EIS)

How well did you know this?

Not at all

Perfectly

What does CATEX stand for?

Categorically excluded – determined not to individually or cumulatively significantly affect the quality of the human environment.

What does FONSI stand for?

Finding of No Significant Impact – determined that no substantial effects on the environment are found.

What is an ALP?

Airport Layout Plan -= a graphical depiction to scale of existing and proposed airport facilities and land uses, including approach clearances, and Part 77 surfaces.

What are the reasons for cost overruns?

a. Scope changes between design and completion
b. Outdated or inaccurate cost estimates
c. Project complexity
d. Material or labor cost escalation
e. Geographical variations in construction costs, in particular, those related to variances in labor, material, transportation, energy, and regulatory compliance costs
f. Poor bidding procedures
g. Contractor management/oversight issues
h. Environmental concerns
i. Weather
j. Community concerns

What funds are typically included in project budgets?

Contingency amounts and allowances.

What are the different types of Project Delivery Processes?

a. Design-Bid-Build (DBB) – typically used by airports
b. Construction Manager at Risk (CMAR) – construction manager provides a guaranteed maximum price (GMP) and will absorb any overruns
c. Design-Build (DB) – the project is initiated with a construction contractor already selected to that they can participate in the design process.

What is the best practice for an airport’s financial manager?

To adopt financial policies and targets to protect the airport’s long-term financial health while serving as an affordability constraint in capital development.

What are the Capital Project Funding sources?

a. Federal Airport Improvement Program (AIP) Grants
b. Federal Transportation Security Administration (TSA) Grants
c. PFC Revenues
d. Airport equity (i.e. retained airport net revenues)
e. State grants and other local funds
f. Tenant and other third-party funding
g. Airport Revenue bonds and other debt instruments

When was the Airport Improvement Grant created?

1982, based on the NPIAS.

What are Entitlement Grants?

Grants are distributed by formula to primary commercial service airports based on levels of passenger and cargo traffic.

What act allows for PFC?

Aviation Safety and Capacity Expansion Act opf 1990 and then increased by the Wendell Ford Aviation Investment and Reform Act for the 21st Cebtyre (AIR-21)

What FAA Order covers the PFCs?

FAA Order 5100.1 Passenger Facility Charges, known as PFC Order

How are PFCs handled?

Airlines collect PFCs on behalf of the airport and then remit them on a monthly basis

When does a PFC get applied?

1. PFCs are charged for the enplaning segment. It does not apply to connecting itineraries

How are PFCs kept?

In a separate restricted, interest-bearing account.

When was the Transportation Security Agency (TSA) created?

2002

What can TSA Funds be used for?

a. Install Baggage Conveyer systems related to aviation security b. Reconfigure terminal baggage areas as required to install explosive detection systems c. Deploy explosive detection systems behind the ticket counter, in the baggage sorting area, or in line with the baggage handling system.

What are Customer Facility Charges(CFCs)?

User fee imposed by an airport operator on each rental car user, collected by rental car companies.

Are there federal restrictions on CFCs?

What is Third Party (Tenant or Developer) Funding?

Facilities provided by third parties under long-term leases or agreements at no financial risk to the airport. These investments revert to the airport at the end of the lease.

What is a primary funding source for most airports?

Long-term debt is supported by airport revenue.

What does the Dodd-Frank Wall Streat Reform and Consumer Protection Act of 2010 cover?

The issuance of municipal bonds.

What does the Municipal Securities Rulemaking Board (MSRB) consider its core principles

a. Fair Dealing (MSRB Rule G-17) – the obligation of dealers and advisors to deal fairly with all persons and not engage in any deceptive, dishonest, or unfair practice b. Sustainability (MSRB Rule G-19) – a requirement for a dealer to have reasonable grounds for believing that a recommendation made to an investor is suitable for the investor. c. Standards of Conduct (MSRB Rule G-42) – the establishment of core standards of conduct for municipal advisors, including their obligations related to their fiduciary duty d. Fair Pricing (MSRB Rule G30) – the requirement that prices, commissions, and any mark-up or mark-down to investors must be fair and reasonable e. Best Execution (MSRB Rule G-18) – the requirement that dealers seek the most favorable terms reasonably available for their retail customer’s transactions. f. Dealer Compensation (MSRB Rule G-15) – the requirement for dealers to provide customer confirmations that include information about the transaction, attributes of the security, the amount of any commission, and the amount of any mark-up or mark-down for certain trades g. Time-of-Trade Disclosure (MSRB Rule G-47) – the requirement for dealers to disclose to customers all material information known about a transaction and security at or prior to the time of trade.

What is Financial Forecasting?

A powerful tool for evaluating the financial implications of various capital programs.