aviation management consulting group aca. aviation management consulting group aca 2013 fall...

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2013 Fall Conference

Association of California Airports (ACA)

South Lake Tahoe, CaliforniaSeptember 11, 2013

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Compliance 101

Presented by:

Paul MeyersPrincipal

Aviation Management Consulting Group

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Aviation Management Consulting Group

Paul Meyers35 years of experience…

Aviation–leadership–management–customer serviceGA (FBO operations/management), integrated freight, air carrier, and

employee training and development GA management consulting (airport and FBO)

Bachelor’s degree (business/aviation administration)California State University at Los Angeles

Member of the GA Airports Committee (AAAE) and Airport Business Committee (NATA)

Airport Cooperative Research Program (ACRP)Panelist, principal investigator, and subcontractor

Aircraft owner and instrument rated private pilot

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Aviation Management Consulting Group…

Services Provide a full range of GA management

consulting services Specialize exclusively in the GA industry

– Services (all GA related) are provided to:» Airports» Fixed Based Operators (FBOs)» Specialized Aviation Service Operators (SASOs)» Others having an interest in the GA industry

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Airports Rent Studies and Fee Analysis/Studies Primary Management and Compliance Documents Strategic/Business Planning/Plans Appraisals and Valuations Lease, Use, and Operating Agreements Through-the-Fence (Access) Agreements Market Assessments and Feasibility Studies RFI/RFQ/RFP Development, Evaluation, and Selection Operational, Managerial, and Financial Assessments Acquisition, Divestiture, and Due Diligence Land Use, Site Planning, and Facility Programming Litigation Support and Expert Testimony

Aviation Management Consulting Group…

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Team Experienced and proven professionals

Excellent working knowledge of the aviation industry– GA airports and aviation businesses (in particular)

Approach every project from a unique (multi-dimensional) GA perspective Airport, business, and customer

Completed over 1,000 GA assignments at more than 500 airport and aviation business locations

Aviation Management Consulting Group…

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Resources Extensive research capabilities

Proprietary GA industry database and GA resource library

Excellent working knowledge of FAA policies and guidelines pertaining to: The planning, development, operation,

management, and funding of airports (in general) The development, implementation, and

enforcement of PMCDs (in particular)

Aviation Management Consulting Group…

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Paul Meyers9085 East Mineral Circle, Suite 315Centennial, CO 80112-3499(303) 792-5202 (direct)(303) 792-2700 (office)(303) 792-2751 (facsimile)pmeyers@aviationmanagement.comwww.aviationmanagement.com

Aviation Management Consulting Group…

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Background on Assurances

Discussion of Key Assurances

Session Outline

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Airport Sponsor Assurances

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Airport Sponsor Assurances

Background on Assurances

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To secure Airport Improvement Program (AIP) funds (a grant), an airport

sponsor is required to give certain assurances to the FAA known as the Airport Sponsor Assurances. In essence, sponsors must agree to comply

with the Assurances (currently 39) as a condition of receiving AIP funds.

Background on Assurances

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As the recipient of an AIP funds, in addition to complying with the assurances, sponsors must comply with: Federal requirements (cited in the grant)

including, but not limited to: Legislation Executive orders Regulations Office of Management and Budget (OMB) Circulars Advisory Circulars (ACs)

Background on Assurances…

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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.

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Background on Assurances

Federal Airport Act of 1946Federal Aviation Act of 1958Airport and Airway Development Act of 1970Airport and Airway Improvement Act of 1982Wendall H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21)Vision 100 – Century of Aviation Reauthorization Act

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Definition of Sponsor

An airport owner that has accepted AIP funds (grant) Any airports in the audience who have not

accepted AIP funds (grant)?

Public Agency Sponsor A public agency with control of a public-use

airport (i.e., City/County/State)

Private Sponsor A private owner of a public-use airport

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The 39 Assurances

1. General Federal Requirements2. Responsibility/Authority of the Sponsor3. Sponsor Fund Availability4. Good Title5. Preserving Rights and Powers6. Consistency with Local Plans7. Consideration of Local Interest8. Consultation with Users9. Public Hearings

10. Air and Water Quality Standards

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The 39 Assurances…

11. Pavement Preventative Maintenance12. Terminal Development Prerequisites13. Accounting System, Audit, and Record

Keeping Requirements14. Minimum Wage Rates15. Veteran’s Preference16. Conformity to Plans and Specifications17. Construction Inspection and Approval18. Planning Projects19. Operation and Maintenance

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The 39 Assurances…

20. Hazard Removal and Mitigation21. Compatible Land Use22. Economic Nondiscrimination23. Exclusive Rights24. Fee and Rental Structure25. Airport Revenues26. Reports and Inspections27. Use by Government Aircraft28. Land for Federal Facilities29. Airport Layout Plan

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The 39 Assurances…

30. Civil Rights31. Disposal of Land32. Engineering and Design Services33. Foreign Market Restrictions34. Policies, Standards, and Specifications35. Relocation and Real Property Acquisition36. Access By Intercity Buses37. Disadvantaged Business Enterprises38. Hangar Construction39. Competitive Access

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Discussion of Key Assurances

Airport Sponsor Assurances

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Economic Non-Discrimination

Airport Assurance 22

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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.

22 (a). Economic Nondiscrimination

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22 (c). Economic Nondiscrimination

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.

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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 sponsor.

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Economic Non-Discrimination…

Terms and Conditions of Use 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.

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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.

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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

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Economic Non-Discrimination

Self-Service

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Self-Service

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.

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Self-Service…

Each air carrier using the airport shall have the right to service itself or to use any commercial flight support service provider authorized or permitted by the airport to serve any air carrier at the airport.

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Airport Assurance 23

Exclusive Rights

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Exclusive Rights

Prohibition against exclusive rights 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 (47107(a)(4)).

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Exclusive Rights…

Definition of an exclusive right Any power, privilege or right excluding or

debarring another from enjoying or exercising a like power, privilege, or right.

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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

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Exclusive Rights…

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

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Exclusive Rights…

Proprietary Exclusive Right Sponsor may engage in any commercial

aeronautical activity and deny same rights to others without violating prohibition. Only as a principal

– Using its own employees, equipment, and resources

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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.

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Airport Assurance 24

Fee and Rental Structure

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24. Fee and Rental Structure

Sponsor will maintain a fee and rental structure for the facilities and services at

the airport which will make the airport as self-sustaining as possible under the circumstances existing at the

particular airport.

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Question and Answer

Airport (Sponsor) Assurances

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Thank You!

Enjoy the rest of your stay. Have a safe trip home!

Aviation Management Consulting Group