AIRLINE CONSULTATION MEETING

Transcription

1 AIRLINE CONSULTATION MEETING Passenger Facility Charges Proposed Projects Bangor International Airport Bangor, Maine June 2011

2 Bangor International Airport intends to file an application with the Federal Aviation Administration (FAA) to impose and use Passenger Facility Charges (PFCs) on various projects in the terminal/landside area. PROJECTS TO BE INCLUDED IN THE NEW APPLICATION Projects to be included in the new application are as follows: 1. Electrical Upgrades 2. Renovations in Domestic Terminal 3. PFC Application Costs NOTICE TO AIR CARRIERS A meeting will be held with the air carriers serving the airport, foreign and domestic, on June 14, 2011 at 11:00 AM in the Airport Conference Room. This brochure provides all of the information that is required to be presented at that meeting as part of the consultation with air carriers. It includes the following: 1. A description of the projects. 2. An explanation of the need for the projects (justification). 3. A detailed financial plan for the projects, including (1) the estimated allowable project costs allocated to major project elements, (2) the anticipated total amount of PFC revenue that would be used to finance the projects, (3) the sources and amounts of other funds, if any, needed to finance the projects, and (4) a copy of the Airport's five-year Capital Improvement Program. REQUEST THAT A CLASS OF CARRIER NOT BE REQUIRED TO COLLECT PFCs Subsection 11 of FAR Part 158 permits the Airport to request that a class of air carriers or foreign air carriers not be required to collect PFCs. Such a class is one that constitutes no more than 1% of the total number of passengers enplaned annually at the airport at which the PFC is imposed. In the Notice of Intent, the Airport indicated that it intends to request that On Demand Air Taxi Commercial Operations (ATCO) that do not

3 enplane or deplane passengers at the Airport's main passenger terminal building be exempt from collecting PFCs. This class of carrier at Bangor International Airport represents 0.23% of total passengers enplaned annually as recorded on FAA Form AIR CARRIERS REQUIREMENTS In conformance with Section , following the meeting of June 14, 2011, each carrier has until July 14, 2011 to provide the Airport with a written certification of its agreement or disagreement with the proposed project. A certification of disagreement must contain the reasons for such disagreement. The absence of such reasons shall void certification of disagreement. If a carrier fails to provide the Airport with certification of agreement or disagreement with the proposed project by July 14, 2011, the carrier is considered to have certified its agreement. 2

4 PROJECT DESCRIPTIONS

5 1. ELECTRICAL UPGRADES DESCRIPTION A. Electrical Primary Underground Service This project will consist of removing existing riser poles, installing new riser poles with switches and air breaks in front of Dock 13, installing (3) runs of 4" PVC conduits encased in concrete for the airport loop feed system and (2) runs for the Hotel radial feed system, a new underground service to feed Docks II & 13, (2) 750 KVA transformers to supply the domestic terminal and international terminal, (4) new concrete pull boxes, removal of existing wiring and devices within the existing manholes, new aluminum cabling, earthwork, and pavement replacement. B. International Terminal Generator Upgrade This project includes modifying the existing building to accommodate NEC and the manufacturer's space requirements, demolition of the existing generator, demolition of the existing switchboard in the generator building, replacement of fuel system components within the building, installation of a new 625 KVA generator, new double doors, and new conduit and wiring from the generator building to the existing automatic transfer switch. C. Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades Upgrade the existing 240/416V service to 120/208V 3-phase power. Replace the original 240/416V and miscellaneous panels in the Electric Room with new panels. Install a new step up transformer so as to supply 480V / 3- Phase power to the existing equipment. The new work does not include replacing or rewiring any existing branch circuit wires to their respective fixtures/outlets. It includes replacing feeders between new subpanels in the Electrical Room. JUSTIFICATION AND OBJECTIVE The electrical service equipment has exceeded its useful life. A majority of the components are showing signs of wear and corrosion. This was evident in a recent power outage that lasted several days last summer. An investigation was conducted by Carpenter Associates to identify the elements that need to be updated. In general, the underground electric was installed as a radial type feed. A radial type feed system provides only one circuit from the source (Utility Poles) to the load(s) (pad mount transformers). The major issue with radial type feed is when a problem occurs and power is required to be shut down, all the loads connected to that circuit will be without power. 2

6 . All originally installed primary cables have an open neutral type cable. Past records indicate that these cables were installed circa These cables are expected to last 25 years without incident. The more immediate concern with the originally installed cables with the open neutral is the copper conductors are unprotected and therefore subject to corroding sooner, so the potential danger of a neutral decaying or breaking open increases. If one of the neutrals on the 3 cables should become defective, the load on the remaining two neutrals would have to compensate for the last cable that has a defective concentric neutral. If the load on these two neutrals exceeds their rating, there is a potential for severe damage or possibly a fire. The replacement of the generator for the international building is necessary because the generator is old and has become a maintenance problem, with frequent repairs required and parts hard to come by because of its age. In addition, the existing generator is unable to operate the critical systems at the airport and needs to be larger. ELIGIBILITY Costs related to administrative (nonpublic use) space and any equipment, furnishings or facilities used in revenue production (e.g., snack bar equipment or furniture, vending machines, telephones, reservation lines) are not allowable costs. Therefore, these costs must be broken out of the overall cost of the project. A. Electrical Primary Underground Service A portion of the new primary underground service is intended to serve the hotel. This cost is ineligible for funding under the PFC program. Portions of the terminal building are non-public and portions are also leased. These are also ineligible for funding with PFC collections. The eligibility of the domestic terminal and the international terminal was determined to be 69.2%. Appendix A shows the calculations for the portions of the terminals that are eligible as well as ineligible. Docks 11 and 13 are used by the airport for storage of equipment and are therefore 100% eligible. B. International Terminal Generator Upgrade The eligibility of the generator is based on the square footage of public space within the international terminal. This was calculated to 79.5%. See Appendix A for calculations. C. Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades As stated above, Docks 11 and 13 are used for airport equipment storage and are therefore, 100% eligible. 3

7 ESTIMATED TOTAL PROJECT COST Electrical Primary Underground Service... $655,000 International Terminal Generator Upgrade... $192,000 Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades... $106,000 Total Project 1... $953,000 ESTIMATED ELIGIBLE PROJECT COST Electrical Primary Underground Service... $434,324 International Terminal Generator Upgrade... $152,665 Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades... $106,000 Eligible Total Project 1... $692,989 Ineligible Total Project 1... $206,011 SCHEDULE Estimated Project Implementation Dates: Electrical Primary Underground Service... August 1, 2011 International Terminal Generator Upgrade... August 1, 2011 Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades... August 1, 2011 Estimated Project Completion Dates: Electrical Primary Underground Service... Nov 1, 2011 International Terminal Generator Upgrade... Nov 1, 2011 Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades... Nov 1,

8 APPENDIX A 5

9 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY SUMMARY Domestic Terminal (SF) International Terminal (SF) Total Terminal Buildings public space: 55,446 72, ,534 Terminal Buildings non-public/lease space: 38,078 18,574 56,652 93,524 90, ,186 Eligibility 59.3% 79.5% 69.2% A. Electrical Primary Underground Service total cost eligiblity eligible cost Docks 11 and 13 $51, % $51,700 Hotel $50, % $0 Terminal Buildings $552, % $382,624 $655,000 $434,324 B. International Terminal Generator Upgrade $192, % $152,665 C. Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades $106, % $106,000 $692,989

10 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - DOMESTIC TERMINAL - 1st FLOOR Room Eligible Ineligible Room Name Number Area (S.F.) Area (SF) 102 Closet 23 0 A Freight Elev. A Vestibule Receiving Corridor B Elevator B Coffee Shop Storage Storage Toilet Room Delta Baggage Delta Office Delta Lockers Vestibule Delta Baggage Delta Breakroom Delta Storage Delta Office Delta Women's Restroom Delta Men's Restroom Delta Office Delta Office Baggage Handling (Outside) Allegiant Office Allegiant Office Allegiant Office Allegiant Office Allegiant Office Allegiant Office Maintenance Storage Maintenance Storage Maintenance Vestibule Maintenance Storage Parking Enforcement Ticketing Ticket Queue Corridor Vestibule State Police TSA Office Men's Restroom Janitor's Room Women's Restroom Vestibule 178 0

11 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - DOMESTIC TERMINAL - 1st FLOOR Room Eligible Ineligible Room Name Number Area (S.F.) Area (SF) 147 Lobby Baggage Claim S1 Stair S Avis Budget Hertz National Alamo Vestibule Women's Restroom Janitor's Room Men's Restroom Gate 1 Holding Ticket Queue Ticketing American Eagle American Eagle American Eagle American Eagle Baggage Vacant Vacant Baggage Vacant US Air Office US Air Office US Air Baggage US Air Office Elevator Elevator Lobby Stair Elevator Machinery Room Stair Stairs/Escalator First Floor Total

12 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - DOMESTIC TERMINAL - 2nd FLOOR Room Eligible Ineligible Room Name Number Area (S.F.) Area (SF) 201 Boarding Lounge Boarding Lounge Boarding Lounge Boarding Lounge Boarding Lounge Lounge Concourse USO Coffee Shop Seating Coffee Shop Kitchen Storage Office Red Baron Lounge Vestibule Women's Restroom Men's Restroom Closet Concessions Concessions Storage Concessions Storage Concessions Office Concessions Unfinished Space Gate 2A Corridor Corridor Closet Closet Stairs Stairs Second Floor total First Floor Total Total Domestic Building

13 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - INTERNATIONAL TERMINAL - 1st FLOOR Room Number Room Name Eligible Area (S.F.) Ineligible Area (SF) 178 Storage International Check-in 2, Women's Restroom Men's Restroom Baggage Claim 4, Command Center Search Search Conference/Training Room Baggage Baggage USCS Office Office Office USCS Office USCS Office USCS Office USCS Office Baggage USDA Dog USCS Storage USDA Inspection USDA Cargo USDA Oil USDA Computer USDA Storage USDA Supervisor USDA Lab Staff Lounge Men's Restroom Women's Restroom Security Storage Storage Command Center General Office 0 1, Immigration Port Director IMM Supervisor INS Reception Storage IMM Primary Inspection/Queuing 0 9, Janitorial Closet Men's Restroom 320 0

14 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - INTERNATIONAL TERMINAL - 1st FLOOR Room Number Room Name Eligible Area (S.F.) Ineligible Area (SF) 1123 Women's Restroom Child Care Holding Room Holding Room Holding Room Holding Room Interrogation Room Search Secure INS Reception Lab Computer Room USPHS Storage USPHS Isolation USPHS An??? Office Storage Storage Customs Inspection 12, Corridor Corridor Corridor Corridor Corridor Stair Elevator Elevator Stair Stair First Floor Total 23,242 17,902

15 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - INTERNATIONAL TERMINAL 2nd FLOOR Room Number Room Name Eligible Area (S.F.) Ineligible Area (SF) 231 Security Checkpoint 1, TSA Break Storage TSA Administration TSA Office Smoking Lounge In-Transit Sterile Lounge 6, In-Transit Sterile Lounge 11, Secure Corridor 3, Stair # Secure Corridor 1, Concessions Vestibule Corridor 1, Men's Restroom Women's Restroom Child Care Men's Restroom Women's Restroom Men's Restroom Women's Restroom Corridor Storage Corridor Concourse 9, ??? STAIR STAIR ELEVATOR STAIR ELEVATOR STAIR Second Floor Total 39,767 3,655

16 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY - INTERNATIONAL TERMINAL 3rd FLOOR Room Number Room Name Eligible Area (S.F.) Ineligible Area (SF) 301 Airport Director Conference Room Superintendant of Operations Assistant Airport Director Operations/Dispatch Briefing Room Storage Security Conference Room Storage Office Storage Women's Restroom Men's Restroom Reception Office Conference Room Office Office Computer Room Office General Office Storage Kitchen Corridor Third Floor Total 0 6,096 Second Floor Total 39,767 3,655 First Floor Total 23,242 17,902 Total International Building 63,009 27,653

17 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION ELECTRICAL UPGRADES ELIGIBILITY UTILITY ROOMS (PRO-RATED) Pro-rated rooms (Domestic Terminal): Room Area Room Name Number (S.F.) 100 Boiler Electrical Electrical A Tele/Comm Elevator Elec Standby Generator Electr/Alarm Mechanical Boiler Electrical Room Electrical Room 60 Total 3556 Pro-rated rooms (International Terminal): Room Area Room Name Number (S.F.) Generator Boiler Mechanical Elevator Mechanical Room Janitor Electrical Room Electrical Room 114 Total 2218

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23 2. RENOVATIONS IN DOMESTIC TERMINAL DESCRIPTION This project includes design and construction of high priority upgrades to the existing domestic terminal building which will improve passenger flow, better utilize existing lower level terminal space, and improve the energy efficiency of the building. The project will include upgrades to: a. lower level public restrooms b. public vertical circulation elements (elevator and escalators) c. main entrances and support spaces along curbside edge of ticket lobby. d. consolidation of airline ticket counters, including relocation of spaces to accommodate new outbound baggage screening system (funded by TSA) JUSTIFICATION The 2007 terminal area study identified significant deficiencies in safety, security, efficiency, terminal functionality, and passenger service. Various conceptual approaches to address these deficiencies were identified and assessed. This project will address the highest priority elements indicated in the 2007 study. PROJECT OBJECTIVE The primary goal of the Project is to make improvements to existing building deficiencies in security, safety, functional efficiency, and customer amenity. Expansion to accommodate increased capacity IS NOT being proposed as part of this effort. ELIGIBILTY Costs related to administrative (nonpublic use) space and any equipment, furnishings or facilities used in revenue production (e.g., snack bar equipment or furniture, vending machines, telephones, reservation lines) are not allowable costs. Therefore, these costs must be broken out of the overall cost of the project. The work is contained to the first floor of the terminal building. A sketch of the proposed renovation is included. The calculations for the percentage of public space are also included in Appendix B. The percentage of public space (eligible space) has been calculated to be 74.0%. ESTIMATED PROJECT COST Total Project 2... $4,000,000 6

24 Eligible Cost $2,376,000 Ineligible Cost... $1,624,000 PROPOSED SCHEDULE Estimated Project Implementation Date... January 1, 2012 Estimated Project Completion Date... March 1,

25 APPENDIX B 8

26 BANGOR INTERNATIONAL AIRPORT 2011 PFC APPLICATION TERMINAL BUILDING RENOVATIONS ELIGIBILITY Public Space: Room Area (SF) Lobby renovations 16,500 new restrooms 900 Subtotal 17,400 Non- Public Space: Room Area (SF) rental car space/ state police 1,600 airline ticket counters (south end) 11,300 Subtotal 12,900 Total area of renovations 30,300 Eligible 57.4% Ineligible 42.6%

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29 3. PFC APPLICATION COSTS DESCRIPTION Professional services are required to assist the airport staff with the preparation of the application and the previous amendment to collect Passenger Facility Charges (PFC's). This will include the preparation of supporting documentation such as project sketches, funding scenarios, narratives of need and justification for the projects, and assistance with the preparation of the Airport Capital Improvement Program, including cost estimates. JUSTIFICATION The Airport has contracted for assistance with the preparation of documentation, cost estimates of projects, graphics, assistance with airline consultation, and general matters relating to the application to collect PFC's. ESTIMATED GROSS PROJECT COST a. PFC Application Costs... $43,700 PROPOSED SCHEDULE Estimated Project Implementation Date... February 1, 2011 Estimated Project Completion Date... September 1,

30 FINANCIAL PLAN

31 Financial Plan Exhibit A-1 shows a Summary of Project Costs for the new PFC program at Bangor International Airport. The amount of this new impose and use application is $3,726,708 In accordance with Section (b)(3)(ii), Exhibit A-2 presents the calculation of the net PFC revenue that is anticipated to be collected by the City and used to pay for the PFC projects. PFC collections are currently being collected at a rate of $4.50 per passenger. Exhibit A-2 shows the amount of PFC fees collected through March 31, An estimated 92% of the projected enplaned passengers will be required to pay a PFC. The air carrier fee is calculated at $0.11 per qualifying passenger. The anticipated expiration date is July 1, Exhibit A-3 presents the cash flow for the projects using the project costs per year and the net collected PFC revenues.

32 EXHIBIT A-1a 2011 APPLICATION BANGOR INTERNATIONAL AIRPORT PFC PROGRAM SUMMARY Equipment/ PFC PFC PROJECT DESCRIPTION Construction A/E Costs Total Eligible Ineligible 1 Purchase Snow Removal Equipment $1,756,330 $0 $1,756,330 $1,756,330 $0 2 Electrical Improvements A. Electrical Primary Underground Service $600,000 $55,000 $655,000 $434,324 $220,676 B. International Terminal Generator Upgrade $176,000 $16,000 $192,000 $152,665 $39,335 C. Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades $90,000 $16,000 $106,000 $106,000 $0 3 Terminal Building Renovations, Phase 1 $3,620,000 $380,000 $4,000,000 $2,297,030 $1,040,000 4 PFC Application Costs $66,800 $66,800 $66,800 0 TOTAL: $6,242,330 $533,800 $6,776,130 $4,813,149 $1,300,011 Page 1 of 1

33 EXHIBIT A-1b 2011 APPLICATION BANGOR INTERNATIONAL AIRPORT PROJECT SUMMARY PFC PFC PROJECT DESCRIPTION Construction A/E Costs Total Eligible Ineligible 2 Electrical Improvements A. Electrical Primary Underground Service $600,000 $55,000 $655,000 $434,324 $220,676 B. International Terminal Generator Upgrade $176,000 $16,000 $192,000 $152,665 $39,335 C. Docks 11 and 13 Interior Electrical Distribution Equipment Upgrades $90,000 $16,000 $106,000 $106,000 $0 $692,989 3 Terminal Building Renovations, Phase 1 $3,620,000 $380,000 $4,000,000 $2,297,030 $1,702,970 4 PFC Application Costs $43,700 $43,700 $43,700 $0 TOTAL: $4,486,000 $510,700 $4,996,700 $3,726,708 $1,962,981

34 EXHIBIT A APPLICATION BANGOR INTERNATIONAL AIRPORT CALCULATION OF TOTAL PASSENGER FACILITY CHARGE REVENUE PFC PROGRAM CALENDAR TOTAL ENPLANED ASSUMED PFC - ELIGIBLE TOTAL ESTIMATED AIRLINE COLLECTION NET PFC REVENUE YEAR PASSENGERS (1) ENPLANED PASSENGERS (2) PFC REVENUE (3) FEES (4) (5) Collected through March 31, 2011 $1,254, , ,900 $616,050 $15,059 $600, , ,534 $821,399 $20,078 $801, , ,184 $837,828 $20,480 $817, , ,908 $854,586 $20,889 $833, , ,078 $517,847 $12,658 $505, , ,605 $3,647,709 $89,164 $4,813,149 (1) Based on actual enplaned passengers for 2010 (194,516) with 2% growth thereafter. (2) Based on 92% of Total Enplaned Passengers (3) Assumed PFC eligible passengers X $4.50 (4) Assumed PFC eligible passengers X $0.11/passenger Collection started December 1, 2010 (5) Total Estimated PFC Revenue - Airline Collection Fees Anticipated Expiration Date - July 1, 2015 Page 1 of 1

35 EXHIBIT A APPLICATION BANGOR INTERNATIONAL AIRPORT PFC PROGRAM CASH FLOW Prior to CY CY CY CY CY PROJ DESCRIPTION 3/31/ CASH BALANCE: (BEGIN CY) $1,254,586 ($524,844) ($2,957,572) ($2,156,251) ($1,338,903) ($505,206) 1 Purchase Snow Removal Equipment (1,756,330) 2 Electrical Improvements (692,989) 3 Terminal Building Renovations, Phase 1 (2,297,030) 4 PFC Application Cost ($23,100) ($43,700) TOTAL ANNUAL COST: ($1,779,430) ($3,033,719) NET COLLECTED PFC (CY): $600,991 $801,321 $817,348 $833,697 $505,207 TOTAL AVAILABLE NEXT CY: ($524,844) ($2,957,572) ($2,156,251) ($1,338,903) ($505,206) $0 ($xxxxx) = Cash Out $xxxxx = Cash In Page 1 of 1

36 EXCLUDED CARRIERS

37 Bangor International Airport Passenger Facility Charge Program Carriers Excluded From Collecting PFCs JUSTIFICATION: BGR is excluding On-demand Air Taxi Commercial Operators (ATCOs). The annual revenue to BGR from each proposed excluded carrier would be less than $ These revenues would not cover the cost of the airport s recordkeeping requirements and the cost of the annual audit. For the largest collecting carrier in the excluded class this translates to a compensation of $1.11 per month to pay for the expense of collecting and remitting the PFCs. This equals $3.33 per quarter to cover the cost of the quarterly report requirements of FAR Part If the quarterly reports are not required then there is only $13.31 available for the required annual report. These compensation levels do not cover the costs of the monthly remittance and annual report for the carrier. EXCLUDED CARRIERS: Subsection 11 of FAR Part 158 permits the Bangor International Airport to request that a class of air carriers not be required to collect PFCs. Such a class is one that constitutes less than 1% of the total number of passengers enplaned annually at the airport. The airport intends to request that On Demand Air Taxi Commercial Operators (ATCO) that (1) do not enplane or deplane passengers at the airport's main passenger terminal building and (2) enplane less than 200 passengers per year at the airport be exempt from collecting PFCs. This class of carriers represents less than 1% of total passengers enplaned annually as recorded on FAA Form Carriers excluded from collecting PFCs at the Bangor International Airport based on FAA Form reporting for calendar year 2010 are: Capital Excel Inc enplanement ElanAir, Inc enplanements Executive Air Charter of Boca Raton enplanements Executive Jet Management, Inc enplanements Flight Services Group, Inc enplanements Jet Solution, LLC enplanements Jetchoice 1 LLC enplanements Maine Instrument Flight enplanements Modesto Executive Air Charter, Inc enplanements Nxaero LLC... 4 enplanements Ontario Air Service, Inc enplanements Pro Airways LLC... 5 enplanements

38 Silver Ranch Airpark, Inc enplanements Sun Aviation, Inc enplanements Twin Cities Air Service LLC enplanements Total enplanements of excluded carriers: enplanements Total enplanements of all carriers: ,516 enplanements Percentage of total enplanements for excluded carriers: % 14