Distinguished Budget Presentation

Transcription

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2 GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO Metropolitan Washington Airports Authority Virginia For the Fiscal Year Beginning January 1, 2007 President Executive Director

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7 METROPOLITAN WASHINGTON AIRPORTS AUTHORITY 2008 BUDGET JANUARY 1 - DECEMBER 31, 2008 BOARD OF DIRECTORS The Honorable H.R. Crawford, Chairman Mame Reiley, Immediate Past Chairman Charles D. Snelling, Vice Chairman James L. Banks, Jr. Robert Clarke Brown The Honorable William W. Cobey Jr. Anne Crossman Mamadi Diané Michael David Epstein Weldon H. Latham Leonard Manning Michael L. O Reilly The Honorable David G. Speck EXECUTIVE STAFF James E. Bennett, President and Chief Executive Officer Margaret E. McKeough, Executive Vice President and Chief Operating Officer Lynn Hampton, CPA, Vice President for Finance and Chief Financial Officer Andrew T. Rountree, CPA, Deputy Chief Financial Officer Rita Alston, Budget Manager

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9 TABLE OF CONTENTS Page President s Budget Message... 1 BUDGET PROGRAMS AND ORGANIZATION Enterprise Descriptions Budget Programs Metropolitan Washington Airports Authority Budget Summary for Combined Enterprises Airports Authority Organization Purpose, Mission, and Goals Financial Policies Budget Preparation and Amendment Process Budget Calendar for Organization Structure Organization Chart Air Trade Area BUDGET IN BRIEF Aviation Budget Summary for Aviation Enterprise Fund Dulles Corridor Budget Summary for Dulles Corridor Enterprise Fund AVIATION ENTERPRISE OPERATIONS Operation & Maintenance Financial Overview Operating Revenues Comparison of 2007 and 2008 Operating Revenues Comparison of 2007 and 2008 Concession Revenues Statement of Operations Statement of Operations: 2006, 2007, and Statement of Operations by Airport: 2007 and Statement of Operations by Airport GAAP Presentation Financial Trends Fund Balance and Estimated Cash Flow i

10 Table of Contents (continued) Debt Program Operation and Maintenance Program Operating Expenses by Organization New Aviation Enterprise Positions and Descriptions Airports Authority Position Summary Effective Buying Income Airport Snapshots Airlines Serving the Airports Population Airport Activity Forecasts Activity Indicators Budget by Cost Centers Capital, Operating and Maintenance Investment Program Program Summary Project Expenditures: Project Descriptions Capital Construction Program Program Summary Reagan National Map Washington Dulles Map Project Expenditures: Project Descriptions DULLES CORRIDOR ENTERPRISE OPERATIONS Operation and Maintenance Dulles Toll Road Description Dulles Toll Road Statement of Operations Dulles Corridor Enterprise New Positions and Descriptions Renewal and Replacement Program Dulles Corridor Renewal and Replacement Program Project Descriptions Dulles Corridor Capital Improvement Program Dulles Corridor Metrorail Project Overview Project Expenditures Project Descriptions GLOSSARY ii

11 November 29, 2007 Ms. Mame Reiley Chairman, Board of Directors Metropolitan Washington Airports Authority Dear Ms. Reiley: The recommended 2008 Budget for the Metropolitan Washington Airports Authority (Airports Authority) for the period January 1 through December 31, 2008, is herewith presented to the Board of Directors (Board) for approval. The 2008 Budget includes annual budgets for both the Aviation Enterprise Fund and the Dulles Corridor Enterprise Fund. In June 2007, the Board established a Dulles Corridor Enterprise Fund that will be used to account for the activities related to the rail project and the operations, maintenance, and improvements of the Dulles Toll Road over the next fifty years. The Dulles Corridor Enterprise Fund is segregated from the financial operations of the Airports. There are both challenges and opportunities as the Airports Authority integrates the Dulles Corridor Enterprise into our operations and expands our stakeholders to include, not only our airport customers, but also users of the Dulles Toll Road and ultimately users of the Metrorail extension to Washington Dulles International Airport (Washington Dulles). The 2008 Budget for Aviation includes the operations of the Airports, Consolidated Functions, and Public Safety. The 2008 Budget was prepared after review of revenue forecasts, airline activity levels, the impact of increases in operating expenses on landing fees and rental rates, strategic initiatives, the business plan, the airport consultant report, prior year actual expenditures, current program functions, the impact of new programs, safety and security issues, and the overall economic climate of the region and airline industry. The 2008 Budget for the Dulles Corridor includes the Dulles Toll Road and the Dulles Rail Project. The Airports Authority has concluded negotiations with the Commonwealth of Virginia (Commonwealth) to assume responsibility for the operation and maintenance of the Dulles Toll Road. In exchange, the Airports Authority has committed to the construction of a Metrorail extension to Washington Dulles and beyond, with a terminus in Loudoun County. It is anticipated that the Airports Authority may receive authorization from the Commonwealth to transfer responsibility for the Dulles Toll Road and the Metrorail extension project in early Further, responsibility for the Metrorail extension project has been assumed. The Dulles Corridor Budget was prepared after review of expected toll collections, operating expenses, renewal and replacement, and capital requirements. Within the service category for the operation of the Dulles Toll Road is $14.1 million for payment to the Virginia Department of Transportation (VDOT) for operation of

12 Ms. Mame Reiley Page 2 of 9 the Dulles Toll Road and its auxiliary components, including the collection of tolls, maintenance, and policing, for three quarters of the budget period. The Airports Authority is planning to review and evaluate toll road operational models and methods and make a determination of the long-term model to be implemented. The presentation of the Dulles Rail Project is consistent with our submission to the Federal Transit Administration (FTA). During 2008, a cost allocation system will be developed to appropriately allocate the direct and indirect costs between both our Aviation Enterprise and the Dulles Corridor Enterprise Funds. The budget document contains considerable detail about the Enterprises. Please note that the Budget in Brief section describes significant budget highlights. AVIATION ENTERPRISE FUND The 2008 Budget for the Aviation Enterprise consists of three Programs: Air Carrier Update The Operation and Maintenance (O&M) Program provides for the day-to-day operation and maintenance of the Airports Authority s facilities, including those functions performed centrally. Included in this program are operating expenses, debt service, noncapital facility projects and equipment expenses. The O&M Program is funded from airline rates and charges and nonairline revenue, including concession and other revenues. The 2008 operating expenses, excluding debt service, are projected at $281.4 million, 5.2 percent over the 2007 Budget. The Capital, Operating and Maintenance Investment Program (COMIP) provides for repair work at the Airports, equipment and projects, planning, improvements, snow program, and operating initiatives. The COMIP budget is funded with the Airports Authority s share of net remaining revenue. The 2008 new program authorization for the COMIP is projected at $32.8 million. The Capital Construction Program (CCP) provides for the planning, design and construction of major facility improvements at both Airports. The CCP is funded from bond proceeds, passenger facility charges (PFCs) and grants. The 2008 new program authorization for the CCP is projected at $364.3 million. Management continues to believe in the strategic importance of air service to the Washington region and is optimistic that the Washington air service market will continue to be vibrant and expanding. The air carrier industry continues to face high operating costs, intense competition

13 Ms. Mame Reiley Page 3 of 9 between legacy and low-cost carriers, and other complex challenges in an evolving industry, including continuing airline consolidation and changes to their business model. The Airports Authority will continue to pursue the important goals of maintaining and enhancing the diversity of the region s air service, as well as providing quality facilities while maintaining our competitive capability to our airline partners. The Washington region benefits from a strong economy. In 2008, airline activity at both Airports is expected to grow over Enplanements at Ronald Reagan Washington National Airport (Reagan National) are projected to grow 0.7 percent. Washington Dulles domestic enplanement growth rates are projected to increase 6.0 percent in 2008 over Washington Dulles international enplanements are projected to grow 8.7 percent based on new and expanded international service. The combined increase in enplanements at Washington Dulles is projected at 6.6 percent. The combined enplanement increase for our Airports in 2008 is projected at 4.1 percent. The Airports Authority will continue to strengthen its business intelligence operations with selection of the software and implementation of portions of the Airports Authority-wide Enterprise Resource Planning System (ERP). This project is funded in COMIP and CCP and additional funding is requested for Security and passenger conveyance issues remain at the forefront in our planning activities. Transportation Security Administration (TSA) support costs are included in the O&M Budget with a portion offset by revenues. Operating Revenues Budgeted operating revenues of $585.8 million for 2008 reflect a $39.1 million or 7.2 percent increase over The increase in revenues is related to the recovery of debt service, concession revenue, and operating expenses related to the expected increase in activity levels at both Airports. Operating revenues received from the Airlines are on a cost recovery basis. Concession revenue changes are directly correlated to enplanement projections. Airline Cost and Net Remaining Revenue Net Remaining Revenue (NRR) is estimated at $134.0 million in 2007 and approximately $125.5 million in Under the Airport Use Agreement and Premises Lease (the Agreeement), NRR is allocated between the Airports Authority and the Signatory Airlines according to an established formula. The Signatory Airlines share of NRR (transfers) included in the 2008 operating revenue is estimated at $86.1 million.

14 Ms. Mame Reiley Page 4 of 9 Cost Per Enplanement Comparison by Year This chart compares signatory airline cost per enplanement debt service and O&M expenses. The 2008 Budget assumes a 0.4 percent increase in the cost per enplanement. The debt service component of the total cost per enplanement will decrease by 0.8 percent while the O&M portion will increase by 1.4 percent. $12 $ $ $ Debt Service O&M Expenses Signatory Airline Cost Per Enplanement % Change 2008 vs Debt Service $4.52 $4.87 $ % O&M Expenses $6.35 $6.46 $ % Combined $10.87 $11.33 $ % Aviation Operation and Maintenance Program The budgeted 2008 operating expenses, excluding debt service, total $281.4 million, a 5.2 percent increase over The 2008 O&M Budget includes a total of $4.6 million for incumbent staff compensation increases through the Performance Management Partnership (PMP) program for the performance period January 1 through December 31, 2008, reflecting an increase of 5.0 percent to overall personnel compensation. Salary increases for employees in 2008 are based on the parameters of the PMP program. The PMP program establishes specific goals and measurements for work units and individuals and encourages productive communication between supervisors and employees. The PMP evaluates employees based on performance, with salary adjustments based on achieving performance goals. Staffing is proposed to increase by 47 positions, from 1,359 to 1,406 in A total of 18 new positions are included for Washington Dulles, primarily for maintenance and engineering functions associated with the new AeroTrain (Automated People Mover) and the Concourse B extension. A total of 29 positions, consisting of 20 new police officers and nine firefighters are included for Public Safety.

15 Ms. Mame Reiley Page 5 of 9 The Airports Authority s share of health and life insurance premium payments are projected to remain flat in 2008, with the exception of the benefit cost of new employees and the funding of the Government Accounting Standards Board (GASB) Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans and Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, in 2008, for the past retirement health and life insurance liabilities. Other Costs The 2008 Budget also includes a $4.1 million increase over 2007 for various contractual commitments. These consist of the airport federal lease payment, 800 MHZ channel licensing, radio equipment maintenance, information systems outsourcing contract, software application support, utilities, unarmed guard services, employee shuttle services, snow removal services and supplies, elevator and escalator maintenance, waste recycling and removal, landscaping, airfield access control system maintenance and custodial services. Custodial services at Reagan National have been increased by $0.6 million to provide for additional cleaning frequencies in the terminals and related supplies. A total of $1.3 million has been added in the services and supplies categories to support the operation of the AeroTrain, airfield, north area roads, and west expansion of Concourse B at Washington Dulles. The major components of this amount are custodial services, snow and ice supplies and utilities. An additional $0.7 million is added for IT core systems supporting business functions, new information technology initiatives for the Consolidated Communications Center, enhanced security oversight, the intranet system, Payment Card Industry (PCI) compliance support services, and the Global Information System (GIS) program. Operating insurance and risk management costs are estimated to remain constant within 2007 levels. The 2008 program provides for continuation of several customer service oriented initiatives including terminal restroom upgrades, enhanced custodial services, passenger holdroom seating, a new art program, student ambassadors to assist TSA at airport checkpoints, improved way-finding signage, and travelers aid services. Debt Debt service has increased in certain cost centers as projects are completed. Included in debt service are principal and interest payments on bonds, and fees associated with the Commercial Paper (CP) Programs and Auction Rate Notes. The 2008 O&M Budget provides sufficient funding levels to operate and maintain the Airports.

16 Ms. Mame Reiley Page 6 of 9 Capital, Operating and Maintenance Investment Program The 2008 COMIP Budget for new projects totals $32.8 million and provides for repair work at the Airports, equipment, planning, improvements, snow removal program and operational initiatives. The Airports Authority's share of net remaining revenue will be used to fund the 2008 Program. Descriptions of COMIP projects are included on pages 139 through 152. Capital Construction Program The 2008 Budget includes authorization of $364.3 million for new projects and additional funding for existing projects in the CCP. CCP expenditures for 2008 for both new program authorization and prior year projects are estimated at $668.8 million. The CCP is funded from bond proceeds, PFCs, and grants. The Airports Authority continues its aggressive emphasis on program management, including cost and schedule control, construction safety, and quality assurance of its capital programs. With the issuance of the Series 2007B Bonds, the Airports Authority has sufficient proceeds on hand to fund the CCP until late summer 2008, assuring that a minimum of three months of bond funds or commercial paper availability is always on hand. An additional $34.0 million is included in the CCP for the ERP. This increased funding will provide additional system services support and the necessary technology hardware upgrades to support the system as discussed with the Information Technology Committee. The CCP new program authorization for projects at Reagan National is $58.9 million. The major new projects at Reagan National include runway safety area improvements, the rehabilitation of the Terminal A baggage handling system, and replacement of the parking revenue control system. Additionally, there is added funding for the additional deck on garages A and B/C. The increase in the project cost for the parking garage will have a minimal impact to overall rates and charges. The CCP new program authorization at Washington Dulles is $305.4 million. New authorization at Washington Dulles includes snow removal equipment for the fourth runway and an associated equipment storage facility, and added funding for the Main Terminal APM Station and Security Mezzanine and Concourse C federal inspection services area improvements. CCP expenditures for 2008 includes continuation of major projects including construction of the fourth runway and associated taxiways, the AeroTrain system, Concourse C federal inspection services areas, and construction of the International Arrivals Building expansion. Certain previously approved projects that were unscheduled, including design efforts for the Tier 2 Concourse, are budgeted for expenditures in The CCP is periodically reviewed by the Airports Authority based on facility needs and financial feasibility. Descriptions of CCP projects are included on pages 173 through 188.

17 Ms. Mame Reiley Page 7 of 9 DULLES CORRIDOR ENTERPRISE FUND The 2008 Budget for the Dulles Corridor Enterprise consists of three Programs: The Operation and Maintenance Program is the financial plan for operating the Dulles Toll Road, including reserve requirements. The operation and maintenance program is funded from toll road revenue. The 2008 estimate is $75.9 million, including a debt service reserve requirement and other reserve contributions. The estimate excluding debt service reserve requirements and other reserve contributions is $22.9 million. The Renewal and Replacement Program for the Dulles Toll Road and Connector addresses major maintenance requirements including overlays, sound wall repairs, bridge deck replacements, erosion and drainage control, and other routine maintenance projects. The Renewal and Replacement program is funded from toll road revenue. The estimate for the Renewal and Replacement Program new program authorization is $3.3 million. The Dulles Corridor Capital Improvement Program funds Dulles Corridor Capital Improvements related to the Dulles Toll Road, its ancillary ramps and interchanges, and the Dulles Rail Project. The Capital Improvement Program is funded from bond proceeds, Federal Transit Administration grants, and contributions from Fairfax County and the Commonwealth. The 2008 new program authorization is $226.9 million. Dulles Corridor Operation and Maintenance Program The Dulles Corridor Enterprise Fund s revenues are budgeted at $79.2 million and estimated operating expenses of the Operation and Maintenance Program are $22.9 million, excluding debt service requirements and other reserve contributions. The non-operating expenses category includes $3.3 million for Renewal and Replacement Program expenses. There is $23.7 million budgeted in contributions to Dulles Corridor Enterprise Fund Reserves. The reserve contributions include $6.6 million for future Dulles Corridor Bus services commitments, $8.5 million to the Operation and Maintenance reserve and $8.5 million to the Renewal and Replacement Reserves. Debt Service is estimated at $29.3 million. Included in the budget in the services category for the operation of the Dulles Toll Road is $14.1 million for payment to VDOT for continued operation of the Dulles Toll Road and its auxiliary components including the collection of tolls, maintenance, and policing. VDOT will operate the Dulles Toll Road on behalf of the Airports Authority for an interim period. During this

18 Ms. Mame Reiley Page 8 of 9 period, the Airports Authority will have the opportunity to review and evaluate toll road operational models and methods and make a determination of the long-term model to be implemented. A staffing request for eight positions exclusively assigned to the Dulles Corridor Enterprise including a vice president for Dulles Corridor operations, internal auditor, toll road operations manager, two toll reconciliation specialists, safety manager, contracting officer, and an engineer is included in the program. Employees in the Dulles Corridor Enterprise will participate in the PMP Program. Dulles Toll Road Renewal and Replacement Program The Renewal and Replacement Program includes $3.3 million for new authorization for various projects including a study of toll plaza modifications, security systems, bridge maintenance, signage, upgrade study, and sound wall repairs. Dulles Corridor Capital Improvement Program Dulles Toll Road Project The new authorization for capital improvements related to the Dulles Toll Road is $102.0 million. These projects include bridge and structural repairs, sound wall study and repair and replacement, roadway pavement repairs, signage and lighting upgrades, and various operation studies. Dulles Rail Project The Airports Authority has committed to the construction of an extension of the Metrorail system from West Falls Church station through Tysons Corner to Wiehle Avenue (Phase 1) and through Washington Dulles to Route 772 in Loudoun County (Phase 2). The total project cost of Phase 1 is currently estimated to be $2.595 billion. Interest cost through 2013 is estimated at $577.9 million. Phase 1 is expected to receive a fixed contribution of $900.0 million in new startup funding from the FTA. Fairfax County will provide a fixed contribution of $400.0 million for Phase 1. The Commonwealth will provide $43.5 million in Virginia Transportation Act (VTA) 2000 revenues toward the cost of Phase 1. The remaining Phase 1 project costs will be provided by the Airports Authority through a combination of bonds, Transportation Information Finance and Innovation Act (TIFIA) loans, or other financing agreements as the Airports Authority deems necessary, secured by a pledge of Dulles Toll Road revenues. The request for authorization of the entire Phase 1 project was approved by the Board at the August meeting. The 2008 Budget includes $112.9 million for the authorization of projects not included in Phase 1. These projects include the Transportation Management Plan, Route 7 and Spring Hill modification and emergency crossover enhancements. A portion of the 2008 new capital improvement authorization, $12.5 million, is for design services in Phase 2 of the Dulles Rail

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21 BUDGET FOR AVIATION AND DULLES CORRIDOR ENTERPRISE FUNDS BUDGET PROGRAMS The 2008 Budget for the Airports Authority will cover the period from January 1 through December 31, The 2008 Budget includes the Aviation and Dulles Corridor Enterprise Funds. The Toll road operation and rail construction activities are budgeted and accounted for in the Dulles Corridor Enterprise Fund, separately from aviation, which is accounted for in the Aviation Enterprise Fund. The AVIATION ENTERPRISE consists of three separate programs: the Operation and Maintenance Program, the Capital, Operating and Maintenance Investment Program, and the Capital Construction Program. Operation and Maintenance Program (O&M). The O&M Program provides for the day-to-day operation and maintenance of Ronald Reagan Washington National Airport (Reagan National) and Washington Dulles International Airport (Washington Dulles) (collectively, the Airports) including those functions performed centrally. Included in this program are operating expenses and debt service. Expenses are identified separately for Consolidated Functions, Reagan National, and Washington Dulles. The expenses for the Police and Fire Departments are included in the expenses for Reagan National and Washington Dulles. Revenues from airlines, airport tenants, and concessionaires (including parking and rental cars) are used to fund the O&M Program. Revenues and interest income generated in excess of operating expenses and debt service are referred to as net remaining revenue (NRR), a percentage of which is shared with the Signatory Airlines. Capital, Operating and Maintenance Investment Program (COMIP). The COMIP provides for repair work at the Airports, equipment and projects, snow removal, planning, improvements, and operating initiatives. The Airports Authority s share of NRR is the primary source of funding for COMIP projects in accordance with the Agreement, and may be supplemented by grants and PFCs. Capital Construction Program (CCP). The CCP is the plan for the design and construction of major improvements of the Airport facilities. The CCP is funded from bond proceeds, PFCs and grants. The DULLES CORRIDOR ENTERPRISE consists of three separate programs: the Operations and Maintenance Program, the Renewal and Replacement Program and the Capital Improvement Program. Dulles Corridor Operation and Maintenance Program (O&M). The O&M program is the financial plan for operating the Dulles Toll Road, including reserve requirements. The O&M program is funded from toll road revenue. Dulles Corridor Renewal and Replacement Program (R&R). The R&R program for the Dulles Toll Road addresses major maintenance requirements including overlays, bridge deck replacements, erosion and drainage control, and other routine maintenance projects. The R&R program is funded from toll road revenue. Dulles Corridor Capital Improvement Program (CIP). The CIP funds capital improvements related to the Dulles Toll Road, its ancillary ramps and interchanges, and the Dulles Rail Project. The CIP is funded from bond proceeds, FTA grants, and contributions from Fairfax County and the Commonwealth. 11

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23 BUDGET SUMMARY FOR COMBINED ENTERPRISES 2008 NEW PROGRAM AUTHORITY Aviation Operation and Maintenance Program, including Debt Service $ 485,486,000 Aviation Capital, Operating and Maintenance Investment Program $ 32,800,000 Aviation Capital Construction Program $ 364,300,000 Total Aviation Enterprise Fund $ 882,586,000 Dulles Corridor Operation and Maintenance Program $ 75,944,000 Dulles Corridor Renewal and Replacement Program $ 3,270,000 Dulles Corridor Capital Improvement Program $ 226,900,000 Total Dulles Corridor Enterprise Fund $ 306,114,000 Total New Program Authority $ 1,188,700,000 FUNDING SOURCES Operating Accounts $ 485,486,000 Net Remaining Revenue $ 32,800,000 Bonds/Grants/PFCs $ 364,300,000 Total Aviation Enterprise Fund $ 882,586,000 Toll Road Revenue $ 79,214,000 Bonds/Grants $ 226,900,000 Total Dulles Corridor Enterprise Fund $ 306,114,000 Total Funding Sources $ 1,188,700,000 13

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25 PURPOSE, MISSION, AND GOALS PURPOSE The Airports Authority is an independent entity, established by the Commonwealth of Virginia and the District of Columbia, whose purpose is to plan, provide, and actively manage world-class access to the global aviation system in a way that anticipates and serves the needs of the National Capital area. The Airports Authority has committed to the construction of a metrorail extension to Washington Dulles and beyond, with a terminus in Loudoun County. MISSION The Airports Authority s mission is to develop, promote, and operate safely Reagan National and Washington Dulles, continually striving to improve our efficiency, customer orientation, and the level of air service offered at the Airports. We will be the best managed Airports in the United States. VALUES GOALS 1. Service Orientation 2. Excellence 3. Integrity 4. Openness to Change 5. Respect for Individuals In support of its mission, the Airports Authority has established seven goals to guide its operation: STRATEGIC INITIATIVES The Airports Authority has developed a set of Strategic Initiatives to guide Offices in setting priorities and allocating resources. The Strategic Initiatives align with the PMP Program and Performance Dashboard Scorecard focus areas. Each Office develops action plans that align to these Strategic Initiatives. The Action Plans are incorporated into the Airports Authority s annual Business Plan. The Business Plan is approved annually by the Board of Directors (the Board) and reviewed quarterly by the various committees of the Board. The Business Plan is also provided to public audiences. The Airports Authority will carry out the following Strategic Initiatives: 1. Safety, security and risk reduction is essential 2. Maintain financial strength, efficiency, and accountability 3. Maintain competitive airline rates and charges 4. Obsess over customer service 5. Improve workforce planning 6. Be recognized as a fair marketplace 7. Initiate and incorporate industry changes 8. Process quality work on time 9. Integrate business practices, processes, and technology 1. Have a strong customer service focus 2. Attract, motivate, and retain a high quality, diverse workforce 3. Provide quality facilities to our customers 4. Maintain financial strength 5. Integrate with the world around us 6. Keep the Airports Authority aligned with the changing aviation industry 7. Reflect the diversity of the region in the Airports Authority s contracting programs 15

26 FINANCIAL POLICIES FINANCIAL PLANS Budgeting is an essential element of the financial planning, control, and evaluation process of the Airports Authority. For the Aviation Enterprise, the O&M Program is the Airports Authority s annual financial plan for operating the Airports. The COMIP is the Airports Authority s plan for accomplishing repair work at the Airports, equipment and projects, snow removal, planning, improvements, and operating initiatives. The CCP is the Airports Authority s plan for the design and construction of major improvements and new facilities at the Airports. For the Dulles Corridor Enterprise, the O&M Program is the financial plan for operating the Dulles Toll Road. The R&R Program addresses major maintenance requirements. The CIP funds address major capital improvements related to the Dulles Toll Road, ancillary ramps, interchanges, and the Dulles Rail Project. REPORTING Periodic financial reports are prepared to enable the Offices to manage their fiscal programs and enable the Budget Department to monitor and control the budget. Summary financial reports are presented to the President and Chief Executive Officer and the Board within 20 days after the end of each monthly reporting period. Each Vice President is responsible for the execution and analyses of his or her annual budget. In January of each year, a letter is sent to all Vice Presidents requesting them to prepare quarterly financial plans based on their annual budget. During the budget year, quarterly reviews are submitted by the Vice Presidents to the Office of Finance at which time financial status is carefully reviewed. 16

27 BUDGET PREPARATION & AMENDMENT PROCESS BUDGET OVERVIEW Budget estimates are developed after reviewing passenger activity, airline operations, aircraft landed weight forecast, and projected operating expenses. Airlines pay rates and charges based on forecasts and analyses of historical trends, leases, contracts, and other agreements. Airline rates and charges are based on full cost recovery through an allocation of direct and indirect expenses to cost centers of the Airports Authority. Actual costs are reconciled through the settlement process with the Airlines. Under the Agreement, the Signatory Airlines share of NRR for each year is applied as credits, referred to as transfers, in the calculation of the Signatory Airlines rental rates, fees, and charges for the year following the year in which they are earned. Terminal building rental rates at both Airports are calculated by allocating expenses over the rentable square footage in the terminal buildings. Airlines are then charged for the space they occupy. Non-airline rents, including hangars, airmail facilities, and fueling systems, are based on cost recovery. Budget estimates for operation of the Dulles Toll Road are developed after receiving estimated tolls and review of maintenance needs of the Dulles Toll Road. The budget estimates for the Metrorail project reflects the submission to FTA. The Airports Authority s budget process begins nine months prior to the beginning of the budget year with a request for Offices to submit planning requirements for the next five years, with the primary emphasis on the next budget year. The focus of the O&M planning process is to address new initiatives and significant changes or modifications to operating and maintenance requirements. The Multiyear Forecast for the Aviation Enterprise is an internal financial planning document for the Airports Authority. Based on the Airports Authority s expectation of airline and passenger activity at Reagan National and Washington Dulles, the Multiyear Forecast examines the projected revenues and expenses expected over the next ten years while evaluating where the Airports Authority is now. While the Multiyear Forecast is not the annual budget, it serves as a management tool to assess future budget requirements. Following the review of the planning issue papers by the President and Executive Vice President and the Office of Finance, a series of meetings are held to gain additional information about proposed items. The O&M planning process is completed by June of the current year; and Offices are advised of the status of planning issues in the budget preparation instructions. The Office of Engineering annually prepares the capital facility requirements, which are similarly reviewed and included in the COMIP and CCP Budgets. Historical financial, aviation and statistical information is available on the Airports Authority s website. In September of 2007, the Airports Authority s Series 2007B Official Statement, which provided such information, was posted on BUDGET PREPARATION PROCESS Budget instructions and formats are issued in June with submissions due from each Office in August. The Office of Finance reviews the submissions, determines the impact of requested funding levels on airline rates and charges, and submits recommendations to the President and Executive Vice President. Meetings are held with certain Offices in order to gain clarification and further justification of their submissions. A work session is held with the Board in September; and their guidance is incorporated in the proposed Budget. After funding levels for the Budget are established, the Airlines are consulted on the proposed Budget. Draft copies of the proposed Budget are submitted to the Board at the October Finance Committee meeting. The recommended Budget is presented to the Finance Committee at the November meeting. The Budget is 17

28 BUDGET PREPARATION & AMENDMENT PROCESS presented to the Board for adoption at its December meeting. Eight affirmative votes are required. Official notice of next years rates and charges is sent to the Airlines in December. BASIS OF BUDGETING The basis of budgeting is the same as the basis of accounting with both prepared on a full accrual basis, except that the Budget conforms with the applicable provisions of the Agreement, which provides for cost recovery for the operation of the Airports. Additionally, the Agreement provides for directly expensing O&M capital equipment and facility projects and recovering the bond-financed capital improvements through debt service. The Authority prepares a balanced budget on an annual basis in which revenues and other resources equal or exceed expenditures and other uses. A balanced budget is an integral part of maintaining the Authority s financial integrity. BUDGET EXECUTION Financial statements comparing actuals to budget are reported monthly to the President, Executive Vice President, Finance Committee and other Airports Authority management, which enables prudent management control of the budget. The President is authorized to modify or adjust expenditures in the Budget consistent within the levels approved for each program. AMENDMENT PROCESS At any time during the year, the President may recommend to the Board amendments to the adopted Budget. Budget amendments considered by the Finance Committee are submitted to the Board for adoption. 18

29 BUDGET CALENDAR FOR 2008 Unless otherwise stated, the Budget Department is responsible for the following: January! 2008 Year Begins! 2007 Budget Year-End Close! 2008 Financial Plan sent to Offices February/March! Request to Offices for O&M Program Planning Process! Evaluation of 2007 Budget Performance! 2007 Airline Rates and Charges Settlement April/May! 2008 First Quarter Review prepared by Offices! O&M Program Planning Process responses prepared by Offices! 2009 Budget Policy Guidelines prepared June! Preliminary 2009 Activity Level Forecast developed! 2009 Budget Preparation Handbook distributed to Offices July/August! 2008 Second Quarter Review prepared by Offices! Responses received from 2008 Budget Estimates September! Board of Directors 2009 Budget work session! Analysis of Preliminary 2009 budgets prepared! President confers with Offices on 2009 Budget Submissions! Airline Committee 2009 Budget Briefing! 2009 Activity Level Forecasts finalized! President s 2009 Budget recommendations to Office of Finance October! 2008 Third Quarter Review prepared by Offices! 2009 Draft Budget submitted to Finance Committee for review! Office of Finance prepares the President s recommended 2009 Budget November! Preliminary 2009 Airline Rates and Charges developed! 2009 Proposed Budget presented to Finance Committee for action! 2009 Proposed Budget submitted to Board for action December! 2009 Budget adopted by Board! 2009 Rates and Charges sent to Airlines! 2009 Financial Plans by Quarter developed by Offices 19

30 ORGANIZATIONAL STRUCTURE The Airports Authority was created by the District of Columbia Regional Airports Authority Act of 1985, as amended, and Ch. 598, Virginia Acts of Assembly of 1985, as amended, for the purpose of operating, maintaining, and improving Reagan National and Washington Dulles. The Metropolitan Washington Airports Act of 1986, as amended, authorized the Secretary of Transportation to lease Reagan National and Washington Dulles to the Airports Authority. The Airports Authority is a public body, politic and corporate, and is independent of the District of Columbia, the Commonwealth of Virginia, and the federal government. The Airports Authority initially operated the Airports under a 50-year lease agreement with the U.S. Department of Transportation (DOT) ending June 6, On June 17, 2003, the Federal Lease was amended to extend the term to June 6, The impetus for the formation of the Airports Authority as an independent government entity was the need for substantial capital improvements at the Airports. Operating responsibility was transferred to the Airports Authority on June 7, The Airports Authority s capital program, initiated in 1988, provides for major expansion of facilities at Washington Dulles and modernization of facilities at Reagan National. THE BOARD The Airports Authority is governed by a 13-member Board, five appointed by the Governor of Virginia, three appointed by the Mayor of the District of Columbia, two appointed by the Governor of Maryland, and three appointed by the President of the United States. The Board members serve six-year terms which are staggered. The officers of the Board are the Chairman, Vice Chairman, and Secretary. These officers are elected annually by members of the Board. PRESIDENT AND CHIEF EXECUTIVE OFFICER The executive direction and overall management of the Airports Authority is the responsibility of the President and Chief Executive Officer. The President and Chief Executive Officer plans and directs all of the programs and activities of the Airports Authority, subject to policy direction and guidance provided by the Board. EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER The operation of the Airports Authority, including the support elements necessary to deliver high quality customer service, is undertaken by the Executive Vice President and Chief Operating Officer. In the absence of the President and Chief Executive Officer, the Executive Vice President and Chief Operating Officer acts with the full authority of the President and Chief Executive Officer. OFFICE OF GENERAL COUNSEL The Office of General Counsel provides advice and a full range of legal services in areas that are essential to the formulation of policies as well as the day-to-day operation of the Airports, and serves as the primary point of contact with any special counsel that may be employed by the Airports Authority on a regular or ad hoc basis. OFFICE OF AUDIT With guidance from the Board s Audit Committee, the Office of Audit develops and implements the audit plan for the Airports Authority; evaluates internal controls and recommends improvements to management, reporting results to the Audit Committee and the President and Chief Executive Officer; and manages the activities of external auditors who perform the annual audit of the Airports Authority s financial statements and related activities. 20

31 ORGANIZATIONAL STRUCTURE OFFICE OF AIR SERVICE PLANNING AND DEVELOPMENT The Office of Air Service Planning and Development formulates and executes strategies and actions to maintain and improve the region s passenger and air cargo service through the development and execution of Comprehensive and Annual Air Service Plans. The Office conducts baseline research, develops projections and recommends strategic actions in airline, air cargo, and aviation areas as well as demographic and travel trends focusing on long-range opportunities to enhance the Airport s competitive position within and enhance access to the global aviation system. The Office conducts internal and external outreach activities designed to influence and educate target audiences about the positive economic impacts of air service to the region. The Office advises the President and Chief Executive Officer on a wide variety of aviation issues including creative approaches to activities with potential long-range benefits to the Airports Authority and its customers. The Office supports other Airports Authority offices, as requested, in developing policies, positions and implementation plans regarding passenger, cargo, and industry related issues. OFFICE OF COMMUNICATIONS The Office of Communications is responsible for internal and external communication policies and strategies, including legislative initiatives and all communications programs with community groups, governmental organizations, and the news media on matters related to operation of the Airports. The Office maintains a community outreach program designed to achieve community participation in appropriate areas of Airport decision-making. Other activities include publication of the Annual Report, support for the Airports Authority s marketing and advertising program including the Washington Flyer Magazine, and coordinating aircraft noise abatement and related environmental activities. OFFICE OF FINANCE The Office of Finance is responsible for formulating and executing the annual and long-term budget activities, airline rate setting, financing and planning strategies, cash and debt management, investment activities, commercial banking relations, operation of the accounting system and the issuance of financial reports, and revenue and disbursement management. OFFICE OF ENGINEERING The Office of Engineering formulates and manages all matters relating to engineering, planning, design, and construction at the Airports; administers the COMIP, CCP, Dulles Corridor Repair and Renewal Program, and CIP, which includes the Rail Project; and provides day-to-day oversight and management of the activities of the program management contractor who is assisting the Airports Authority in accomplishing the CCP. OFFICE OF BUSINESS ADMINISTRATION The Office of Business Administration directs the Airports Authority programs in the areas of equal opportunity, concession contracting and administration, lease of Airports Authority space and land, procurement of material and services, property management, and risk management; and coordinates and recommends overall Airports Authority policies regarding airline operations, including administration of the Airports Authority s Agreement and related business activities that support the Airports Authority. The office also manages the JP Morgan Building at Washington Dulles. OFFICE OF HUMAN RESOURCES The Office of Human Resources develops and manages a full range of human resource programs including: personnel services; policy, compensation and benefit programs; and organization development and training to support the Airports Authority s management and staff. The Office also represents the 21

32 ORGANIZATIONAL STRUCTURE Airports Authority s management in labor-related issues. OFFICE OF INFORMATION AND TELECOMMUNICATIONS SYSTEMS The Office of Information and Telecommunications Systems develops, operates, and maintains the automated systems and telecommunications systems that support the Airports Authority operations and manages the Airports Authority s radio communications systems with special emphasis on the Airports Authority operations, maintenance, police, and fire/crash/rescue functions. RONALD REAGAN WASHINGTON NATIONAL AIRPORT AND WASHINGTON DULLES INTERNATIONAL AIRPORT Since the organization structure at both Airports is similar, a single definition is included for both. Airport Managers The Airport Managers for each respective Airport are responsible for managing a range of operational, maintenance, construction, commercial and business management, and for directing on-site administrative activities occurring at each Airport. Operations Departments The Operations Departments are responsible for providing 24-hour-a-day monitoring, guidance, and control of facilities at each Airport to ensure the safe, efficient, secure, and continuous operational use of airport runways, taxiways, terminal buildings, and other areas, and, at Washington Dulles, ramp control and Mobile Lounge operations. In addition, the Operations Departments develop and implement the airport security plans in accordance with FAA requirements. Engineering and Maintenance Departments The Engineering and Maintenance Departments are responsible for providing dayto-day oversight, management, and quality control for both the Airports Authority and tenant-financed construction projects; developing and managing repair and preventive maintenance programs related to the terminals, service buildings, hangars, airfields, roadways, grounds, and plant facilities; providing operation and maintenance of Airport facilities for provision and distribution of electrical energy, water, heat, and air-conditioning; and for snow removal operations. Airport Administration Departments The Airport Administration Departments are responsible for managing on-airport air carrier and air cargo activities including gates, ticket counters, baggage areas, and other in-terminal space arrangements; coordinating necessary changes to the Airports Authority s Agreement and Premises Lease with the Business Administration Office; and managing contracts that provide to travelers parking and ground transportation services. The Washington Flyer ground transportation system is managed at Washington Dulles. The Airport Administration Departments also administer fiscal and personnel programs; manage personal property assets; procure and warehouse supplies, materials, and equipment; and perform other administrative support functions for the Airports. OFFICE OF PUBLIC SAFETY The Office of Public Safety has primary responsibility for assuring public safety and security at the two Airports and directs and supervises the activities of the Police and Fire Departments. 22

33 ORGANIZATIONAL STRUCTURE Police Department The Police Department directs law enforcement functions within the property boundaries of the Airports, including investigating crimes, controlling automotive and pedestrian traffic, and assisting in enforcement of FAA Civil Aviation Security Regulations. Fire Department The Fire Department is responsible for the overall fire protection, prevention, and suppression programs for the Airports; directing activities associated with the operation of fire, crash, search and rescue, and related emergency equipment; and directing programs to provide emergency first-aid treatment and advanced life support systems at the Airports. Public Safety Administration Department The Public Safety Administration Department administers fiscal and personnel programs; manages personal property assets; procures supplies, materials, and equipment; and performs other administrative support functions for the Office of Public Safety. 23

34 ORGANIZATIONAL STRUCTURE Board of Directors H.R. Crawford Chairman James E. Bennett President and Chief Executive Officer Philip Sunderland VP & Secretary Board of Directors Margaret E. McKeough Executive Vice President & Chief Operating Officer Edward Faggen VP & General Counsel Valerie Holt VP for Audit Mark Treadaway VP for Air Service Planning & Development J. Paul Malandrino, Jr. VP & Airport Manager Reagan National Christopher Browne VP & Airport Manager Washington Dulles Elmer Tippett, Jr. VP for Public Safety Mark Treadaway Acting VP for Communications Lynn Hampton VP for Finance & Chief Financial Officer Frank Holly VP for Engineering Robert Sullivan Airport Operations Dana Pitts Airport Operations Stephen Holl Police Chief Tara Hamilton Public Affairs Andrew Rountree Deputy Chief Financial Officer Stephan Smith Deputy Vice President Richard Golinowski Engineering & Maintenance Brian Leuck Engineering & Maintenance Gary Mesaris Fire Chief Pamela Alme Marketing Anne Field Controller & Payroll Vacant Assistant Vice President Ronald Stange Airport Administration Kim Crego (Acting) Airport Administration Claude Rountree Public Safety Administration Michael Cooper State & Local Government Affairs Neal Phillips Noise Abatement Jennifer Mitchell Deputy Project Director Dulles Corridor Metrorail Project Nancy Edwards Treasury William Lebegern Planning Diane Hirsch Design Steven Baker VP for Business Administration Richard Gordon Equal Opportunity Arl Williams VP for Human Resources Deborah Lockhart Staffing & Records Services George Ellis VP for Information & Telecommunications Systems Syed Ali IT Operations & Services Margaret Bishop Community Relations Vacant Congressional & Regulatory Affairs Marcia McAllister Rail Communications Mgr., Dulles Corridor Metrorail Project Rita Alston Budget Rochelle Cameron Financial Strategy and Analysis Kenneth Vogel Construction Walter Seedlock Building Codes/ Environmental Charles Carnaggio Project Director, Dulles Corridor Metrorail Project Michael Natale (Acting) Administrative Services T. Paul Dorrington Concessions & Property Development E. Fred Seitz, Jr. Procurement & Contracts Michael Natale Risk Management Warren Reisig Benefits & Retirement Michael Brogan Organization Development Kenneth Pritchard Compensation John Tapajcik Labor & Employee Relations Alisia Billups-O Neill Telecommunications Systems Derek Kelly Wireless & Radio Systems Merrill Phelan IT Systems & Programming Michael Stewart Air Carrier Relations 24

35 AIR TRADE AREA The Washington-Arlington-Alexandria, DC-VA-MD- WV Core-Based Statistical Area (CBSA) is the primary Air Trade Area for the Airports, based on geographical boundaries and the location of alternative commercial air service facilities. The Washington D.C.-Maryland-Virginia Area encompasses the entire District of Columbia, State of Maryland, and Commonwealth of Virginia. The Air Trade Area, which is comprised of the following jurisdictions: the District of Columbia; the Maryland counties of Calvert, Charles, Frederick, Montgomery, and Prince George s; the Virginia counties of Arlington, Clarke, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania, Stafford, and Warren; the independent Virginia cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park 1 and the West Virginia county of Jefferson. 1 These six Virginia cities are separate jurisdictions and are not included in any county statistics. 25

36 INTENTIONALLY LEFT BLANK

37 BUDGET SUMMARY FOR AVIATION ENTERPRISE 2008 AVIATION OPERATING REVENUES AND INTEREST INCOME Operating Revenues* Rents** $ 218,501,000 Landing Fees** 127,465,000 Tenant Equipment Charges** 3,223,000 Concessions 187,114,000 Security Fees 1,341,000 International Arrival Building Fees** 10,243,000 Passenger Conveyance** 23,629,000 Utilities 8,090,000 Other Revenues 6,148,000 Total Operating Revenues $ 585,754,000 Interest Income $27,563,000 * Revenue projections for airline supported areas are based on current expense estimates and are generated on a cost recovery basis. ** Includes estimated transfers, which are the Signatory Airlines' share of net remaining revenue for each year applied as credits in the calculation of signatory airline rates, rentals, fees, and charges for the next year. Transfers are anticipated to increase from the 2007 Budget by $22,476,100 or 35.3 percent from $63,638,000 in 2007 to $86,114,100 in I I Operating revenue received from the Airlines is on a cost recovery basis. The Airports Authority s NRR is projected to increase by 20.4 percent over the 2007 Budget. Operating revenues are projected to increase by 7.2 percent and total operating expenses are projected to increase by 4.3 percent in The overall increase in total operating expenses is a result of operating expenses increasing by 5.2 percent and debt service increasing by 3.2 percent. and service reallocations. The 2008 projections are based on United s continued hubbing operations and new and continuing service by low fare carriers serving the Airport. Continued growth in international activity at Washington Dulles is projected based on the relatively large, existing international air carrier base expanding service, and new carriers attracted to the Airports by the diversity of international market opportunities serviced, and strong international presence in the region. I I An increase of 0.7 percent in enplanements is projected for Reagan National in 2008 over estimated 2007 and 0.9 percent increase in landed weights based on an increase in average aircraft size and load factors. Overall enplanements at Washington Dulles are projected to increase by 6.6 percent in 2008 from estimated 2007 and 3.2 percent in landed weights. The 2007 increase in enplanements at Washington Dulles anticipated airline capacity adjustments I Concession revenue, primarily parking, is estimated to increase by 5.3 percent in 2008 over 2007 Budget estimates, taking into account current contractual requirements and projected enplanements. In addition, it is anticipated that other concession revenues will increase modestly as activity levels increase at both Airports. 27

38 BUDGET SUMMARY FOR AVIATION ENTERPRISE 2008 AVIATION OPERATION AND MAINTENANCE PROGRAM The Aviation O&M Program provides for the day-to-day operation and maintenance of Reagan National and Washington Dulles including those functions performed centrally. Included in this program are operating expenses, debt service, capital equipment and facility projects and noncapital expenditures. Operating Expenses $281,389,000 Debt Service $204,097,000 Total O&M Program $485,486,000 EXPENSES I Highlights of the 2008 operating expenses to support continuing operations and maintain facilities include the following: Staffing is proposed to increase by 47 positions, from 1,359 to 1,406. A total of 18 at Washington Dulles and 29 for Public Safety; The Performance Management Partnership (PMP) Program adds $4,485,700 to personnel compensation for incumbent staff raises reflecting a 5.0 percent increase in overall compensation; Funding of the Government Accounting Standards Board (GASB) 43 and 45 in 2008 for post retirement health and life insurance liabilities is $6,190,000; The Airports Authority s share of health insurance premium payments will remain flat in 2008, however an increase of 3.5 percent is anticipated to provide for the increase of the GASB 43 and 45 and health insurance costs for new positions; Maintenance of facilities, including the terminals, concourses and buildings, is accomplished with a balance of both in-house and contractual personnel; Security and safety requirements such as airport access control systems, police overtime and costs for the guard services have been included; It is anticipated that the estimated expense of $1,341,000 for law enforcement support of the Transportation Security Administration (TSA) will be primarily offset by revenues; The utility increases of $869,000 are due to rate and consumption increases experienced in 2007 and annualized in 2008; Contract escalation increases of $3,183,600 include the airport lease payment, 800 MHz channel licensing, radio equipment maintenance, information systems outsourcing contract, software application support, unarmed guard services, employee shuttle services, snow removal services and supplies, elevator and escalator maintenance, waste recycling and removal, landscaping, airfield access control system maintenance and custodial services are included; Custodial services at Reagan National have been increased by $600,000 to provide for additional cleaning frequencies in the terminals and related supplies; A total of $1,267,200 was added in the services and supplies categories to support the new facilities at Washington Dulles. Of this amount, a total of $634,800 was added for 28

39 BUDGET SUMMARY FOR AVIATION ENTERPRISE maintenance of the Concourse B extension. The major components of this amount are custodial services, snow and ice supplies and utilities; An additional $662,840 was included in the Office of Information Systems and Telecommunications budget to provide for support of the Consolidated Communications Center, security services contract, Reagan National s work order system, Livelink intranet system, PCI services and the GIS program; Based on the new contract, the net cost for Telecommunications is estimated to decrease by $77,000 in 2008 for a total of $1,417,800; and In 2008, the net loss projected is $33,200 for the JP Morgan Office Building at Washington Dulles.. 29

40 BUDGET SUMMARY FOR AVIATION ENTERPRISE 2008 AVIATION CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM The COMIP provides for ongoing major repair work at the Airports, including airfield and roadway rehabilitation, utility system repairs, rehabilitation of buildings, in addition to the Airports Authority initiatives. Net Remaining Revenue (NRR) $32,800,000 New program authority for the COMIP in 2008: Consolidated Functions, $2.2 million Equipment Compensation Studies Organization Planning and Programming $0.7 million $0.8 million $0.7 million Reagan National, $11.0 million Building Roofing and Repairs Capital Equipment, Facility Projects and Start-up Electronic Information Modification Airfield Repairs Security Improvements and Studies ERP Business Re-engineering Information Technology Systems Enchainments Crash Net System Replacement Commercial Program Investment Snow Removal Program Arts Program $2.6 million $2.3 million $1.8 million $1.2 million $1.0 million $0.6 million $0.6 million $0.4 million $0.3 million $0.1 million $0.1 million Washington Dulles, $19.6 million Capital Equipment, Facility Projects and Start-up Airfield Pavement Repairs Building and Roofing Repairs Aircraft Rescue and Fire Fighting Equipment Utility Systems Road Rehabilitation Projects Snow Removal Program ERP Business Re-Engineering Security improvement and System Enhancements Federal, environmental compliance and planning studies Arts Program Commercial Program Investment $4.9 million $4.0 million $2.8 million $2.2 million $2.0 million $1.0 million $0.8 million $0.6 million $0.6 million $0.4 million $0.2 million $0.05 million 30

41 BUDGET SUMMARY FOR AVIATION ENTERPRISE 2008 AVIATION CAPITAL CONSTRUCTION PROGRAM The CCP new program authority provides for major expansion of facilities at Washington Dulles and facilities modernization at Reagan National. The new 2008 CCP authorization totals $364.3 million. CCP expenditures during 2008 are estimated at $672.8 million, including capitalized interest for both Airports. Proceeds from the 2007B Bonds of $530 million and Commercial Paper (CP) will provide sufficient proceeds to fund projects in the CCP through late summer Bonds/Grants/PFCs $364,300,000 New program authority for the CCP in 2008: Reagan National, $58.9 million new program authority provides for: Terminal A Baggage Handling System Rehabilitation Safety Area Runway 1 Parking Revenue Control System Replacement New Apron at demolished Airfield Rescue and Firefighter Station site increased funding for ERP increased funding for additional Parking Deck at Garages A and B/C increased funding for Consolidated Communications Center increased funding for Terminal A Facade Repairs and Window Replace $10.0 million $9.4 million $7.0 million $5.9 million $17.0 million $6.0 million $3.0 million $0.6 million Washington Dulles, the $305.4 million new program authority provides for: Fourth Runway Maintenance Equipment Main Terminal VAC. Commissioning Phase 2 Fourth Runway Maintenance Equipment Storage Building Gate 313 Sanitary Sewer Connection Runway 1R-19L Light Base and Conduit Replacement increased funding Future Runway C-19C and Taxiway W increased funding Main Terminal APM Station and Security Mezzanine increased funding for Fourth Runway and Association Taxiways increased funding ERP increased funding Site Development for Commercial Hangars (NOAA Relocation) increased funding North Area Roads Greenway Ramp increased funding Concourse BTenant Fit out West Expansion increased funding Tenant Relocation increased funding Planning and Programming increased funding Main Terminal Expansion Joint Replacement increased funding Concourse C/D Rehabilitation increased funding Airfield Pavement Panel Replacement $8.8 million $3.6 million $2.0 million $1.2 million $4.2 million $128.6 million $88.0 million $17.8 million $17.0 million $9.8 million $6.3 million $2.5 million $2.1 million $2.0 million $1.5 million $0.8 million $2.0 million 31

42 BUDGET SUMMARY FOR AVIATION ENTERPRISE The total CCP also includes $825.2 million for projects that were previously authorized in d 2 and previously deferred by management. These projects include: Tier 2 Concourse People Mover to Tier 1 to Tier 2 West Tunnels South Utility Building Utility Tunnel $591.1 million $94.8 million $83.5 million $55.8 million 32

43 OPERATING REVENUES AND EXPENSES PIE CHARTS Operating Revenues* 2006 Actual - $491.7 Million International Arrivals Building Fees 2.0% Passenger Conveyance Fees 4.1% Utilities 1.5% Other Revenues 1.2% TSA Security Fees 0.3% Rents 38.0% Concessions 33.7% Tenant Equipment Charges 0.8% Landing Fees 18.5% 2007 Budget - $546.6 Million International Arrivals Building Fees 2.0% Passenger Conveyance Fees 4.4% Utilities 1.4% Other Revenues 1.1% TSA Security Fees 0.5% Rents 37.8% Concessions 32.5% Tenant Equipment Charges 0.6% Landing Fees 19.6% 2008 Budget - $585.8 Million International Arrivals Building Fees 1.7% TSA Security Fees 0.2% Passenger Conveyance Fees 4.0% Utilities 1.4% Other Revenues 1.0% Rents 37.3% Concessions 31.9% *Includes Transfers Tenant Equipment Charges 0.6% Landing Fees 21.8% 33

44 OPERATING REVENUES AND EXPENSES PIE CHARTS Total Operating Expenses & Debt Service 2006 Actual - $392.7 Million Debt Service 41.6% Personnel Compensation 28.8% Lease and Rental Payments 2.4% Other Expenses 0.8% Projects & Equipment 0.8% Insurance & Risk Management 1.8% Services 16.1% Supplies, Materials & Fuels 2.7% Utilities 5.0% 2007 Budget - $465.2 Million Debt Service 42.5% Personnel Compensation 29.2% Lease and Rental Payments 2.0% Other Expenses 0.6% Services 15.4% Projects & Equipment 0.6% Insurance & Risk Management 1.9% Supplies, Materials & Fuels 2.8% Utilities 5.0% 2008 Budget - $485.5 Million Debt Service 42.0% Personnel Compensation 29.8% Lease and Rental Payments 2.1% Other Expenses 0.5% Projects & Equipment 0.5% Insurance & Risk Management 1.9% Services 15.3% Utilities 4.9% Supplies, Materials & Fuels 2.9% 34

45 COMPARISON 2007 & 2008 OPERATING EXPENSES Metropolitan Washington Airports Authority (dollars in thousands) DO LLAR PERCENT OPERATING EXPENSES CHANGE CHANGE PERSONNEL EXPENSES Full-time Permanent $84,236.5 $90,841.0 $6, % Other than Full-time Permanent 2, , % Overtime 8, , % Other 3, , % Personnel Compensation 99, , , % Health Insurance 18, , % Life Insurance % Retirement 17, , % Other % Employee Benefits 36, , , % Total Personnel Expenses 135, , , % TRAVEL 1, , % LEASE AND RENTAL PAYMENTS Airport Lease Payments 4, , % Other 4, , % Total Lease and Rental Payments 9, , % UTILITIES Electricity 13, , % Natural Gas 7, , % Water 1, , % Sewerage 1, , % Total Utilities 23, , % TELECOMMUNICATIONS 1, ,417.8 (77.0) -5.2% JP MORGAN CHASE BUILDING (72.8) % SERVICES Custodial Services 13, , , % Contractual Services 57, , , % Total Services 71, , , % SUPPLIES, MATERIALS AND FUELS Fuels 2, , % Supplies and Materials 10, , % Total Supplies, Materials and Fuels 13, , % INSURANCE AND RISK MANAGEMENT 8, , % NONCAPITAL EQUIPMENT 1, , % NONCAPITAL FACILITY PROJECTS % CAPITAL EQUIPMENT % CAPITAL FACILITY PROJECTS % TOTAL OPERATING EXPENSES $267,599.3 $281,389.1 $13, % 35

46 COMPARISON 2007 & 2008 OPERATING EXPENSES Consolidated Functions (dollars in thousands) DOLLAR PERCENT OPERATING EXPENSES CHANGE CHANGE PERSONNEL EXPENSES Full-time Permanent $25,398.8 $27,334.8 $1, % Other than Full-time Permanent , % Overtime 1, , % Other % Personnel Compensation 28, , , % Health Insurance 4, , % Life Insurance % Retirement 4, , % Other % Employee Benefits 9, , % Total Personnel Expenses 37, , , % TRAVEL % LEASE AND RENTAL PAYMENTS Airport Lease Payments 4, , % Other % Total Lease and Rental Payments 4, , % UTILITIES Electricity % Natural Gas % Water % Sewerage % Total Utilities % TELECOMMUNICATIONS 1, ,417.8 (77.0) -5.2% JP MORGAN CHASE BUILDING (72.8) % SERVICES Custodial Services % Contractual Services 24, , , % Total Services 24, , , % SUPPLIES, MATERIALS AND FUELS Fuels % Supplies and Materials 2, , % Total Supplies, Materials and Fuels 2, , % INSURANCE AND RISK MANAGEMENT 8, , % NONCAPITAL EQUIPMENT 1, , % NONCAPITAL FACILITY PROJECTS % CAPITAL EQUIPMENT % CAPITAL FACILITY PROJECTS % TOTAL OPERATING EXPENSES $82,425.7 $87,318.5 $4, % 36

47 COMPARISON 2007 & 2008 OPERATING EXPENSES Ronald Reagan Washington National Airport (dollars in thousands) DOLLAR PERCENT OPERATING EXPENSES CHANGE CHANGE PERSONNEL EXPENSES Full-time Permanent $23,005.8 $24,392.7 $1, % Other than Full-time Permanent % Overtime 2, , % Other % Personnel Compensation 26, , , % Health Insurance 5, ,348.4 (76.6) -1.4% Life Insurance % Retirement 5, ,884.8 (208.8) -4.1% Other % Employee Benefits 10, ,517.6 (273.7) -2.5% Total Personnel Expenses 37, , , % TRAVEL % LEASE AND RENTAL PAYMENTS Airport Lease Payments % Other % Total Lease and Rental Payments % UTILITIES Electricity 4, , % Natural Gas 2, , % Water % Sewerage % Total Utilities 7, , % TELECOMMUNICATIONS % JP MORGAN CHASE BUILDING % SERVICES Custodial Services 4, , % Contractual Services 10, , % Total Services 14, , , % SUPPLIES, MATERIALS AND FUELS Fuels % Supplies and Materials 3, , % Total Supplies, Materials and Fuels 3, , % INSURANCE AND RISK MANAGEMENT % NONCAPITAL EQUIPMENT % NONCAPITAL FACILITY PROJECTS % CAPITAL EQUIPMENT % CAPITAL FACILITY PROJECTS % TOTAL OPERATING EXPENSES $64,831.7 $68,444.9 $3, % 37

48 COMPARISON 2007 & 2008 OPERATING EXPENSES Washington Dulles International Airport (dollars in thousands) DOLLAR PERCENT OPERATING EXPENSES CHANGE CHANGE PERSONNEL EXPENSES Full-time Permanent $35,831.9 $39,113.5 $3, % Other than Full-time Permanent 1, , % Overtime 4, , % Other 1, , % Personnel Compensation 43, , , % Health Insurance 8, , % Life Insurance % Retirement 7, , % Other (3.0) % Employee Benefits 16, , % Total Personnel Expenses 60, , , % TRAVEL % LEASE AND RENTAL PAYMENTS Airport Lease Payments % Other 4, , % Total Lease and Rental Payments 4, , % UTILITIES Electricity 8, , % Natural Gas 5, , % Water % Sewerage % Total Utilities 15, , % TELECOMMUNICATIONS % JP MORGAN CHASE BUILDING % SERVICES Custodial Services 9, , % Contractual Services 22, ,715.6 (889.1) -3.9% Total Services 31, ,723.0 (237.2) -0.7% SUPPLIES, MATERIALS AND FUELS Fuels 2, , % Supplies and Materials 5, , % Total Supplies, Materials and Fuels 7, , % INSURANCE AND RISK MANAGEMENT % NONCAPITAL EQUIPMENT % NONCAPITAL FACILITY PROJECTS % CAPITAL EQUIPMENT % CAPITAL FACILITY PROJECTS % TOTAL OPERATING EXPENSES $120,341.9 $125,625.7 $5, % 38

49 BUDGET SUMMARY FOR DULLES CORRIDOR ENTERPRISE FUND 2008 DULLES CORRIDOR OPERATING REVENUES AND INTEREST INCOME Operating Revenues Electronic Toll Collection $50,836,000 Cash Toll Revenue 25,039,000 Violations Fee Collections 2,000,000 Total Operating Revenues $77,875,000 Interest Income $ 1,339, DULLES CORRIDOR OPERATION AND MAINTENANCE PROGRAM The Dulles Corridor O&M is the financial plan for operating the Dulles Toll Road, including reserve requirements. The O&M Program is funded from toll road revenue. Operating Expenses $22,894,000 Debt Service 29,308,000 Reserve Contributions 23,742,000 Total O&M Program $75,944,000 H Staffing request for eight positions exclusively assigned to the Dulles Toll Road is requested. Positions include a vice president for Dulles Corridor operations, internal auditor, toll road operations manager, two toll reconciliation specialists, safety manager, contracting officer, and an engineer. H Services include $14.1 million for payment to the Virginia Department of Transportation (VDOT) for operation of Dulles Toll Road and its auxiliary components including the collection of tolls, maintenance, and policing for three quarters of the budget period. The Virginia Department of Transportation will operate the Dulles Toll Road on behalf of the Airports Authority until such time as a Full Funding Grant Agreement is awarded by the Federal Transit Administration. During the period, the Airports Authority will have the opportunity to review and evaluate toll road operational models and methods and make a determination of the long-term model to be implemented. H Additionally, a cost allocation system is being developed to appropriately allocate the costs of staff that will have duties in both our Aviation and Dulles Corridor Enterprise Fund operations. 39

50 BUDGET SUMMARY FOR DULLES CORRIDOR ENTERPRISE FUND 2008 RENEWAL AND REPLACEMENT PROGRAM The Renewal and Replacement Program for the Dulles Toll Road addresses major maintenance requirements including overlays, sound wall repairs, bridge deck replacements, erosion and drainage control, and other routine maintenance projects. The Renewal and Replacement program is funded from toll road revenue. The estimate for 2008 for the Renewal and Replacement Program new program authorization is $3.3 million. Total Renewal and Replacement Program $3,270,000 New program authority for the Renewal and Replacement Program for Dulles Toll Road in 2008: Bridges, Structures and Canopy Repair Joint Replacement and Repair Bearing Replacement Repair of sound Walls Dulles Toll Road Mainlane Pavement Repairs Guardrail, Traffic Barrier, and Fencing Rehabilitation Attenuator Rehabilitation Airports Authority Identification Signage Roadway Sign Replacement and Rehabilitation Street/Plaza Lighting Rehabilitation & Sign Lighting High Impact Maintenance Slip Ramp Gates Corridor Safety Study Toll Security Study $0.5 million $0.1 million $0.05 million $0.4 million $0.5 million $0.1 million $0.2 million $0.1 million $0.2 million $0.1 million $0.3 million $0.3 million $0.2 million $0.2 million 40

51 BUDGET SUMMARY FOR DULLES CORRIDOR ENTERPRISE FUND 2008 DULLES CORRIDOR ENTERPRISE CAPITAL IMPROVEMENT PROGRAM The Dulles Corridor Capital Improvement Program funds Dulles Corridor Capital Improvements related to the Dulles Toll Road, its ancillary ramps and interchanges, and the Dulles Rail Project. The Capital Improvement Program is funded from bond proceeds, Federal Transit Administration grant, and contributions from Fairfax County and the Commonwealth of Virginia. The estimate for new program authorization is $226.9 million. Bonds, Grants and Contributions $226,903,000 New program authority for the Capital Improvement Program in 2008: Rail Project Transportation Management Plan Route 7 and Spring Hill Road Emergency Crossover Enhancements Phase 2 - Design and Engineering $12.5 million $94.5 million $5.4 million $12.5 million Dulles Toll Road Dulles Corridor/I-495 Interchange Study Dulles Corricor/I-495 Interchange Design Centreville Road Interchange Study Route 28 Interchange Study Interchange Flyover Study Route 606 Widening Study - Phase 1 Route 606 Widening Design - Phase 1 Route 606 Widening - Phase 1 Comprehensive Corridor and Connector Road Mobility Study Sound Wall Replacement Study Sound Wall Improvements Sound Wall Replacement Design - Phase 1 Sound Wall Replacement - Phase 1 Repair and Resurface Dulles Connector Road Mainline Repair and Resurface Connector Road Ramps Repair and Resurface Toll Road Ramps Dynamic Message Signs Toll Collection System Plaza Approach Signing and Channelization Study/Design Plaza Approach Signing and Channelization Implementor Plaza Optimization/Open Road Tolling Study Toll Booth and Toll Collection Systems Cabinet Replacement $0.8 million $1.5 million $0.5 million $0.5 million $0.5 million $0.6 million $4.0 million $20.0 million $0.5 million $0.4 million $1.7 million $0.5 million $15.0 million $6.0 million $3.0 million $9.0 million $5.0 million $10.0 million $0.3 million $1.5 million $0.5 million $6.6 million 41

52 BUDGET SUMMARY FOR DULLES CORRIDOR ENTERPRISE FUND Security Implementation Overhead and Guide Sign Study Overhead Sign Lighting/Sign Replacement Sign Structure Replacement Guardrails, Traffic Barriers, Fencing Replacement Program Engineering NEPA Studies Maintenance Storage Yard/Emergency Resource Location Study Maintenance Storage/Emergency Resource Locator $0.8 million $0.2 million $2.0 million $1.0 million $2.0 million $2.5 million $0.05 million $5.0 million 42

53 FINANCIAL OVERVIEW AIRPORT USE AGREEMENT AND PREMISES LEASE To provide the financial stability necessary to accomplish the contractual Capital Development Program (CDP) portion of the CCP, the Authority entered into a long-term airline agreement with substantially identical terms with a majority of the airlines serving Reagan National and Washington Dulles effective October 1, The Airport Use Agreement and Premises Lease (the Agreement) is for a term of 25 years, subject to cancellation rights by the Authority after 15 years. The Agreement will expire on September 30, 2014, but could have been terminated by the Authority effective at midnight December 31, 2004, or on September 30 of any year thereafter, on 180 days notice to the Signatory Airlines. The Authority has decided not to exercise those rights in 2007, but may exercise those rights in a future year and has begun discussions with the Airlines regarding changes in the Agreement. The Agreement provides for the use and occupancy of facilities at the Airports and establishes the rates and charges, including landing fees and terminal rents to be paid by the Signatory Airlines. It continues the close working relationship between the Airlines and the Airports by keeping the cost of the CCP within certain limits and giving the Signatory Airlines an interest in the positive financial performance of the Authority. The Agreement is a compensatory agreement to the extent that the costs are allocated to specified cost centers and the users of those centers are responsible for paying the costs. The Signatory Airlines support the following specific cost centers: airfield, terminal, and equipment (e.g., loading bridges, baggage conveyors and devices). The Signatory Airlines agree to pay fees that allow the Authority to recover the total cost requirement of the airline supported cost centers. The fees are established annually and are based on projected activity and costs. The Authority is responsible for the other cost centers such as the ground transportation cost center. The Agreement also has residual rate making features that are designed to ensure that the Authority s debt service and related coverage obligations will be met. The Agreement is compensatory in nature, but has certain residual features and may, therefore, be considered a hybrid. The Agreement also provides that the Authority will share its revenue, after certain expenses, referred to as NRR, with the Signatory Airlines. The Signatory Airlines share of net remaining revenue (NRR) is used to lower airline rates and charges in the year following the year that the NRR is earned. The Authority uses its share of NRR to fund its COMIP. The Agreement achieves several key Authority objectives:! To ensure that the needs of the traveling public and the Metropolitan Washington community are met through the exercise of the Authority s proprietary control of the Airports facilities;! To establish a sound economic basis for the CCP and the financing for that program;! To provide for adequate discretionary funds for the Authority to meet its obligations that go beyond the CCP; and! To establish a business relationship between the Authority and the Airlines to provide incentives for cooperation on revenueproducing initiatives at the Airports. The Agreement provides a number of important benefits to the Signatory Airlines, including:! Direct lease of premises at the Airports to support their air transportation activities;! Participation in the financial performance of the Authority through the sharing of the Authority s NRR each year;! Right to conduct certain additional activities at the Airports (i.e., in-flight food catering) in support of airline operations; and 43

54 FINANCIAL OVERVIEW! An active role in the execution of the CCP, including Authority recognition of the Metropolitan Washington Airlines Committee (MWAC) as the technical representative of the airline community for the CCP. SIGNATORY AIRLINE COST PER ENPLANEMENT A benchmark used throughout the airport industry to measure the financial performance of airports is the signatory airline cost per enplaned passenger. Since airport operators primarily build, operate, and maintain structural facilities (terminals, hangars, runways, roadways, etc.), the airline cost per enplaned passenger is generally higher for airports with recent major construction and/or underutilized facilities. Because the Authority has been expanding facilities at Washington Dulles and modernizing Reagan National, fees and charges paid by the Airlines to the Authority have increased to recover the debt issued to finance these improvements. The Signatory Airline cost per enplanement for 2006 through 2008: SIGNATORY AIRLINE COST PER ENPLANEMENT Actual Estimate Budget Reagan National $10.02 $10.58 $10.43 Washington Dulles $11.57 $11.89 $12.06 Combined Airports $10.88 $11.33 $11.38 CAPITAL CONSTRUCTION PROGRAM SUMMARY The modernization of facilities at Reagan National has resulted in improved operating efficiency and passenger convenience. The Authority has completed most of the capital projects at Reagan National, including two new interconnected terminals designated Terminal B/C and structured parking garages. Although, terminal space available to the Airlines and concession operators has substantially increased, the total number of air carrier gates remains at 44. Major elements of the CCP completed at Washington Dulles include a new International Arrivals Building, expansion of the Main Terminal, Midfield Concourse B, Regional Airline Midfield Concourse A, Daily Garages 1 and 2, various improvements to the airfield, land acquisition for a future runway, and expansion and renovation of the mobile lounge system. The Authority approved an expanded capital program in 2000 that focused on Washington Dulles and is referred to as the Dulles Development (d 2 ) program. After the events of September 11, 2001, the Authority reexamined plans for the CCP, and in particular, future development at Washington Dulles. As a result, the start dates of several projects were delayed and, in some cases, projects were deferred until the Authority determines that demand and circumstances warrant reactivation of those projects. In addition, new projects were added to the CCP. This revised CCP, including the original d 2 projects and the new projects, less the deferred projects, is referred to as the CCP. As part of a routine review that occurred when the design of the three largest projects in the CCP was approximately 60 percent complete, in June 2003, the Authority made certain additional adjustments to its plans including scaling back certain projects, deferring others, eliminating some entirely and activating some projects that previously were deferred. In 2004 and 2005, the Authority added several new projects to the CCP including new regional terminal facilities at both Airports, building modifications to better accommodate in-line baggage screening at both Airports, and the rehabilitation of Concourses C/D and certain mobile lounges at Washington Dulles. To accommodate recent and expected growth in passenger enplanements, in the fall of 2006, the Authority revised the scheduled completion date for the CCP from 2011 to 2016 and added $2.1 billion ($2.4 billion in inflated dollars) of 44

55 FINANCIAL OVERVIEW projects to the CCP, including the construction of the Tier 2 Concourse, the federal inspection facility and the consolidated rental car facility at Washington Dulles and the south hangar line and runway overlay projects at Reagan National. The 2008 new program authorization is $364.3 million. The active portion of the CCP that is scheduled for completion by the end of 2016 is referred to as the CCP. Authority management currently estimates the total cost of the CCP at approximately $7.1 billion (in inflated dollars). Since 2001, the Authority has expended approximately $2.9 billion of the currently estimated total cost of the CCP. Most of the projects in the CCP are expected to be completed by the end of Because of operating constraints at Reagan National, much of the future growth in aviation activity for the Washington metropolitan area will occur at Washington Dulles. FEDERAL GRANTS The Authority receives both entitlement and discretionary grants for eligible projects from the Federal Aviation Administration (FAA) Airport Improvement Program (AIP). Entitlement funds are determined by a formula according to enplanements at each Airport. These grants are permitted to be used by the Authority at either Airport. The Authority annually applies for discretionary grants from the FAA. The Authority has applied for grants to partially fund the new runway at Washington Dulles through a multi-year grant process. The issuance of a Letter of Intent (LOI) is subject to receipt of Congressional appropriations and is not a binding commitment of funds by the FAA. For planning purposes, the amounts in the pending LOI s from the FAA are used by the Authority as the estimate of federal discretionary grants to be received. The Authority has also received other federal grants including those from Federal Emergency Management Agency (FEMA) and the Homeland Security Grant Program. COMMONWEALTH OF VIRGINIA GRANTS The Commonwealth of Virginia provides grants to Virginia airport sponsors through the aviation portion of the Transportation Trust Fund. The Authority will receive 60 percent of any new money, if any, available for allocation by the Virginia Aviation Board, up to a maximum of $2 million annually. These funds are used as an additional source of funding for the CCP. PASSENGER FACILITY CHARGES The Aviation Safety and Capacity Expansion Act of 1990, enacted November 5, 1990, enables airports to impose a PFC on enplaning passengers. The Authority applied for and was granted permission to collect a $3.00 PFC beginning November 1, 1993, at Reagan National and January 1, 1994, at Washington Dulles. Federal legislation that was approved in April 2000 allowed an increase from $3.00 per passenger to a maximum collection of $4.50. The Authority gained approval for the $4.50 rate in May An airport must apply to the FAA, by submitting an application, for the authority to impose and use the PFCs collected for specific FAA-approved projects. The PFC funds collected are used to finance the projects described in the Authority s approved PFC applications. The Authority has submitted and gained approval of four series of PFC applications, with associated amendments, covering both Airports in the amount of $1.5 billion. The Authority submitted its fourth PFC application for $820 million in The portion of the fourth application relating to Washington Dulles totaling approximately $673 million was approved in August 2005 and the portion of the fourth application relating to Reagan National totaling approximately $147 million was approved in March As of June 30, 2007, the Authority had collected $335.8 million (including interest earned) at Reagan National and $381 million (including interest earned) at Washington Dulles under the first three PFC applications. In March 2007, the Authority filed a fifth PFC application for approximately $125 million. This application would allow PFCs collected at 45

56 FINANCIAL OVERVIEW Reagan National to provide funds for the expansion of the International Arrivals Building at Washington Dulles. In 2008, the Authority expects to collect a total of $94.8 million in PFCs. IMPACT OF THE CAPITAL CONSTRUCTION PROGRAM ON THE OPERATION & MAINTENANCE PROGRAM The most significant impact of the CCP on the O&M Program is in the areas of personnel costs and debt service. An estimated 30 employees of the Authority, including engineers, budget specialists, contract specialists, safety inspectors, accounting technicians, auditors, and clerical employees, provide direct support to the CCP. Debt service is estimated at $204.1 million in 2008 or 42.0 percent of the total O&M Program. To minimize the impact of the CCP on the O&M Program, the Authority has contracted with Parsons Management Consultants (PMC) to help manage and provide technical support for the CCP. PMC has an authorized staff level of approximately 302 full-time employees which may increase as the program proceeds. Office space has been made available for PMC s staff at various locations at Washington Dulles. PMC s costs for support of the CCP are included as project costs and are not charged to the O&M Program. PMC also provides support for some projects in the COMIP and limited support for the O&M Program. All PMC costs are charged to the appropriate project. 46

57 OPERATING REVENUES Operating revenues are estimated to increase from $546,648,000 in 2007 to $585,754,000 in 2008, an increase of $39,106,000 or 7.2 percent. Several important revenue impacts are reflected in this increase: METHODOLOGY Revenue estimates for 2008 were developed after reviewing passenger activity, airline operations, aircraft landing weight forecasts and projected operating expenses. Airlines pay rates and charges based on forecasts and analyses of historical trends; leases, contracts, and other agreements are also considered in these analyses. Airline rates and charges are based on full cost recovery through the allocation of direct and indirect expenses to cost centers of the Authority. Under the Agreement, the Signatory Airlines rental fees and charges are reduced by their share of net NRR. The Airlines share of NRR, referred to as transfers, is credited in the year following the year it is earned. RENTS Under the terms of the Agreement, terminal building rental rates at both of the Airports are calculated by allocating expenses over the rentable square footage in the terminal buildings. Airlines are then charged for the space they occupy. Non-airline rents, including hangars, airmail facilities, cargo facilities, and fueling systems, are based on cost recovery. At Washington Dulles, rents for some cargo facilities are set by specific lease provisions. In 2008, rental revenues, including transfers, are projected to increase by $6,776,000 at Reagan National and increase by $4,935,000 at Washington Dulles. This is a total increase of $11,711,000, an increase from $206,790,000 in 2007 to $218,501,000 in LANDING FEES Under the Agreement, the Signatory Airlines pay landing fees at a rate calculated annually to recover the total costs less transfers of each Airport s airfield cost center. Carriers that are not signatories to the Agreement are required to pay 125 percent of the compensatory rate, i.e., the cost recovery rate before application of transfers. Other operators are charged the compensatory rate. Landing fees do not apply to aircraft operating in government service. Landing fees are projected to increase by $3,805,000 at Reagan National and increase by $16,511,000 at Washington Dulles. This is a total increase of $20,316,000, from $107,149,000 in 2007 to $127,465,000 in TENANT EQUIPMENT CHARGES The Airlines design and construct the fit-out of their individual exclusive space in the terminal facilities at both of the Airports. The Authority has agreed to reimburse participating Signatory Airlines for these costs. The Authority, in turn, will recover these costs from the Airlines over a period of years through tenant equipment charges. Revenues from tenant equipment charges are projected to decrease by $245,000 at Reagan National and decrease by $57,000 at Washington Dulles in This is a total decrease of $302,000 from $3,525,000 to $3,223,000. CONCESSIONS Concession revenues are a major portion of the Authority s operating revenues. These revenues are derived from contracts with concessionaires that generally obligate the concessionaires to pay a percentage of gross revenues to the Authority with an annual minimum amount. Typically these contracts extend for three to five years, although some contracts may extend over longer periods. The Authority awards concession contracts on the basis of procurement procedures. Major concessions include rental cars, public parking, food and beverage, retail stores, and newsstands. Concession revenue estimates 47

58 OPERATING REVENUES are based on a review of each concessionaire s recent performance, adjusted for passenger activity forecasts and other known variables. Concession revenues in 2008 are projected to increase by $3,868,000 at Reagan National and increase by $5,574,000 at Washington Dulles, resulting in a total increase of $9,442,000, from $177,672,000 in 2007 to $187,114,000 by CO NCESSIO N REVENUE PER ENPLANEMENT SECURITY FEES Actual Estimate Budget Reagan National Airport Landside $4.68 $4.77 $5.07 Terminal $1.23 $1.17 $1.23 Other $0.83 $0.82 $0.81 Total National $6.73 $6.76 $7.12 Washington Dulles Airport Landside $5.54 $5.76 $5.21 Terminal $1.06 $1.03 $1.28 Other $2.55 $2.29 $2.45 Total Dulles $9.15 $9.08 $8.94 Combined Airports $8.06 $8.08 $8.17 The Transportation Security Administration (TSA) is responsible for providing passenger screening at departure gates. TSA reimburses the Authority for providing police coverage in support of passenger screening activities. Revenues from security fees in 2008 for both Airports are projected to be $1,341,000. by United Airlines. The Authority reimbursed United Airlines for its costs in October 1997, and the costs of the Concourse C International Arrivals Facility are recovered through a separate fee. Authority revenues from IAB fees from both facilities are projected to decrease from $10,676,000 in 2007 to $10,243,000 in 2008, a total decrease of $433,000. PASSENGER CONVEYANCE FEES Mobile Lounges and Plane-Mates are used for transporting passengers between the Washington Dulles Main Terminal and Midfield Concourses A, B, C, and D, the IAB, or directly to the aircraft. A separate fee to recover costs, less transfers, is charged to the Signatory Airlines based on their proportionate share of enplaning passengers. Passenger conveyance fees are projected to decrease by $579,000 in 2008, from $24,208,000 to $23,629,000. UTILITIES Utility sales are estimated to increase by $455,000 from $7,635,000 in 2007 to $8,090,000 in OTHER REVENUES Other Revenues consists of miscellaneous fees and collections, such as the sale of employee parking decals, taxi cab permit fees, and the sale of surplus property and equipment. These revenues are projected to increase by $58,000 at Reagan National and increase by $38,000 at Washington Dulles in 2008, for a total increase of $96,000, from $6,052,000 to $6,148,000. INTERNATIONAL ARRIVALS BUILDING FEES International Arrival Building (IAB) fees at Washington Dulles are calculated by dividing estimated total recoverable costs by estimated total deplaned passengers for the year. Each airline is charged the resulting cost per deplaned passenger based on actual monthly deplaned passengers. The Concourse C International Arrivals Facility was built 48

59 COMPARISON 2007 & 2008 OPERATING REVENUES COMPARISON OF 2007 AND 2008 OPERATING REVENUES (dollars in thousands) BUDGET BUDGET PERCENT CHANGE RONALD REAGAN WASHINGTON NATIONAL AIRPORT Rents $71,032 $72, % Rent Transfers 10,424 15, % Landing Fees 33,836 35, % Landing Fee Transfers 3,562 5, % Tenant Equipment Charges 1,865 1, % Tenant Equipment Transfers % Concessions 64,457 68, % TSA Security Fees % Utilities 1,802 2, % Other Revenues 1,556 1, % TOTAL NATIONAL OPERATING REVENUES $189,920 $204, % WASHINGTON DULLES INTERNATIONAL AIRPORT Rents $97,824 $95, % Rent Transfers 27,510 34, % Landing Fees 55,747 65, % Landing Fee Transfers 14,004 20, % Tenant Equipment Charges % Tenant Equipment Transfers % Concessions 113, , % TSA Security Fees 2, % International Arrivals Building Fees 7,951 7, % International Arrivals Building Fees Transfers 2,725 3, % Passenger Conveyance Fees 19,485 17, % Passenger Conveyance Transfers 4,723 5, % Utilities 5,833 6, % Other Revenues 4,496 4, % TOTAL DULLES OPERATING REVENUES $356,728 $381, % METROPOLITAN WASHINGTON AIRPORTS AUTHORITY Rents $168,856 $168, % Rent Transfers 37,934 49, % Landing Fees 89, , % Landing Fee Transfers 17,566 26, % Tenant Equipment Charges 2,835 2, % Tenant Equipment Transfers % Concessions 177, , % TSA Security Fees 2,941 1, % International Arrivals Building Fees 7,951 7, % International Arrivals Building Fees Transfers 2,725 3, % Passenger Conveyance Fees 19,485 17, % Passenger Conveyance Transfers 4,723 5, % Utilities 7,635 8, % Other Revenues 6,052 6, % TOTAL OPERATING REVENUES $546,648 $585, % 49

60 COMPARISON 2007 & 2008 CONCESSION REVENUES COMPARISON OF 2007 AND 2008 CONCESSION REVENUES (dollars in thousands) BUDGET BUDGET PERCENT CHANGE RONALD REAGAN WASHINGTON NATIONAL AIRPORT Rental Cars $16,912 $19, % Inflight Kitchen % Parking 28,524 28, % Fixed Base Operator % Food & Beverage 6,156 6, % Retail & News 5,019 5, % Services 2, % Other 4,240 6, % TOTAL NATIONAL CONCESSION REVENUES $64,457 $68, % WASHINGTON DULLES INTERNATIONAL AIRPORT Rental Cars $15,584 $15, % Inflight Kitchen 5,092 5, % Parking 56,165 54, % Fixed Base Operator 9,803 11, % Food & Beverage 6,424 8, % Retail & News 6,468 8, % Services 6,675 6, % Other 7,004 8, % TOTAL DULLES CONCESSION REVENUES $113,215 $118, % METROPOLITAN WASHINGTON AIRPORTS AUTHORITY Rental Cars $32,496 $35, % Inflight Kitchen 5,884 6, % Parking 84,689 82, % Fixed Base Operator 9,803 11, % Food & Beverage 12,580 15, % Retail & News 11,487 13, % Services 9,489 6, % Other 11,244 15, % TOTAL CONCESSION REVENUES $177,672 $187, % 50

61 COMPARISON 2006, 2007 & 2008 CONCESSION REVENUES 2006 Actual - $165.5 Million Retail & News 6.4% Services 3.3% Other 8.9% Rental Cars 18.2% Food & Beverage 7.7% Inflight Kitchen 3.4% Fixed Base Operator 6.4% Parking 45.7% 2007 Budget - $177.7 Million Retail & News 6.5% Services 5.3% Other 6.3% Rental Cars 18.3% Food & Beverage 7.1% Inflight Kitchen 3.3% Fixed Base Operator 5.5% Parking 47.7% 2008 Budget - $187.1 Million Retail & News 7.1% Services 3.6% Other 8.4% Rental Cars 18.8% Food & Beverage 8.2% Inflight Kitchen 3.3% Fixed Base Operator 6.3% Parking 44.3% 51

62 STATEMENT OF OPERATIONS The Authority financial statements are prepared on an accrual basis in accordance with Generally Accepted Accounting Principles (GAAP). For budget and rate setting purposes, however, expenses included in the Statement of Operations have been modified to conform with the provisions of the Agreement as follows:! Capital equipment and capital facility projects included in the O&M Program are treated as operating expenses and are recovered in full in the year purchased;! Investment in COMIP is recovered by amortizing projects using a tax exempt interest rate; and! The bond-financed CCP is recovered through annual debt service. OPERATING REVENUES Operating revenues are described in detail on pages 47 through 51. OPERATING EXPENSES Operating expenses by Airport include Consolidated Functions expenses are allocated between the Airports, except for air service development and the JP Morgan Office Building, which are allocated to Washington Dulles. For the Office of Public Safety, the headquarters staff expenses are allocated between the Airports, and each Airport s police and fire expenses are included by Airport. NET REVENUES In 2008, Reagan National is expected to have net revenues of $92,327,000 and Washington Dulles net revenues of $212,038,000, for combined net revenues of $304,365,000. DEBT SERVICE The Agreement provides that the actual debt service for the bond-financed CCP is recovered annually. While projects financed from bonds are being constructed, the interest is capitalized and funded from the bond proceeds. Included in the Statement of Operations is that portion of debt service recovered through rates and charges. Capitalized interest is excluded. Bond Principal Payments. Bond principal payments for cost recovery purposes will increase by $12,764,000, from $73,118,000 in 2007 to $85,882,000 in Interest Expense. Interest expense will decrease by $6,397,000 from $124,612,000 in 2007 to $118,215,000 in Included in this amount are the Commercial Paper (CP) Program interest expenses, the fees associated with the liquidity facilities and the swap transaction payments. Excluded from interest expense is interest accruing in the lease payment reserve account, which is considered part of the lease payment for the Airports to the federal government. Also excluded is capitalized interest. Statement of Bond Debt 2008 Debt Service Operations (p. 54) Service (p. 68 ) Principal $85,882,000 $87,811,250 2 Interest $118,215,000 $207,607,434 3 Total Debt Service 1 $204,097,000 $295,418,684 1 Excludes principal of $498,750 and interest of $632,655 for the Vastera Building. 2 Includes $1,430,200 for senior debt, for interest earned on principal accounts, which is directly applied to debt service payments. 3 Includes $2,094,700 for interest earned on interest accounts which is directly applied to interest payments, capitalized interest of $69,185,583 for senior debt, commercial paper interest of $13,249,320 and $2,078,319 for estimated swap payments. 52

63 STATEMENT OF OPERATIONS RESERVE REQUIREMENTS In accordance with the Agreement and the Master Indenture, the increases in the Operation and Maintenance Reserve and the Emergency Repair and Rehabilitation Reserve are funded from airline rates and charges. NONOPERATING REVENUE Interest Income. An estimated $27,563,000 in interest will be earned during Interest income will increase by $1,971,000 in 2008, from $25,592,000 in Not included as interest income is the $50,844 in interest accruing in the federal lease payment reserve account which is payable to the U. S. Treasury on the semiannual lease payment dates; it is considered a part of the federal lease payment for the Airports. Also excluded is interest earned on bond funds. Forward Interest Rate Swaps. As of September 30, 2007, the fair value of the swaps was an unrealized loss of approximately $19,375,010. The Authority s Total Assets are adjusted by the current unrealized amount monthly. It is reasonable to expect that since the current value of the swaps is tied to changes in prevailing interest rates, this unrealized gain or loss will fluctuate significantly over the life of the transactions. Neither the unrealized gain nor unrealized loss affects the rates and charges to the Airlines. NET REMAINING REVENUE The NRR is budgeted at $104,234,000 and estimated at $134,000,000 for 2007 and budgeted at $125,533,000 for Under the Agreement, NRR is allocated between the Authority and the Airlines according to an established formula. The Airlines share, included in the 2008 operating revenues as transfers, is $86,100,

64 STATEMENT OF OPERATIONS ACTUAL BUDGET BUDGET (dollars in thousands) OPERATING REVENUES Rents $152,607 $168,856 $168,517 Rent Transfers 34,440 37,934 49,984 Landing Fees 73,375 89, ,076 Landing Fee Transfers 17,612 17,566 26,389 Tenant Equipment Charges 3,061 2,835 2,466 Tenant Equipment Transfers Concessions 165, , ,114 TSA Security Fees 1,303 2,941 1,341 International Arrivals Building Fees 6,934 7,951 7,145 International Arrivals Building Fees Transfers 2,889 2,725 3,098 Passenger Conveyance Fees 14,777 19,485 17,743 Passenger Conveyance Transfers 5,193 4,723 5,886 Utilities 7,349 7,635 8,090 Other Revenues 5,794 6,052 6,148 TOTAL OPERATING REVENUES $491,663 $546,647 $585,754 OPERATING EXPENSES Personnel Compensation $86,776 $99,004 $106,463 Employee Benefits 26,506 36,874 38,193 Travel 1,242 1,207 1,207 Lease and Rental Payments 9,520 9,496 9,984 Utilities 19,610 23,148 24,017 Telecommunications 1,554 1,495 1,418 JP Morgan Chase Building 304 (73) 33 Washingrton Flyer Ground Transportation Services 63,154 71,584 74,335 Supplies, Materials and Fuels 10,635 13,251 14,089 Insurance and Risk Management 6,927 9,000 9,000 Noncapital Equipment 1,718 1,698 1,735 Noncapital Facility Projects Capital Equipment Capital Facility Projects TOTAL OPERATING EXPENSES $229,386 $267,599 $281,389 NET REVENUES $262,276 $279,048 $304,365 DEBT SERVICE Bond Principal Payments ($68,137) ($73,118) ($85,882) Interest Expense ($95,218) ($124,612) ($118,215) RESERVE REQUIREMENTS ($2,412) ($2,676) ($2,298) NONOPERATING REVENUE Interest Income $18,593 $25,592 $27,563 NET REMAINING REVENUE $115,103 $104,233 $125,533 54

65 STATEMENT OF OPERATIONS 2007 STATEMENT OF OPERATIONS BY AIRPORT (dollars in thousands) REAGAN NATIONAL DULLES TOTAL OPERATING REVENUES Rents $71,032 $97,824 $168,856 Rent Transfers 10,424 27,510 37,934 Landing Fees 33,836 55,747 89,583 Landing Fee Transfers 3,562 14,004 17,566 Tenant Equipment Charges 1, ,835 Tenant Equipment Transfers Concessions 64, , ,671 TSA Security Fees 926 2,015 2,941 International A rrivals Building Fees 0 7,951 7,951 International A rrivals Building Fees Transfers 0 2,725 2,725 Passenger Conveyance Fees 0 19,485 19,485 Passenger Conveyance Transfers 0 4,723 4,723 U tilities 1,802 5,833 7,635 Other Revenues 1,556 4,496 6,052 TOTAL OPERATING REVENUES $189,920 $356,728 $546,647 OPERATING EXPENSES Personnel Compensation $40,997 $58,008 $99,004 Employee Benefits 15,565 21,308 36,874 Travel ,207 Lease and Rental Payments 2,569 6,928 9,496 U tilities 7,437 15,711 23,148 Telecommunications ,495 JP Morgan Chase Building 0 (73) (73) Washingrton Flyer Ground Transportation Services 27,132 44,452 71,584 Supplies, Materials and Fuels 4,782 8,469 13,251 Insurance and Risk Management 4,500 4,500 9,000 Noncapital Equipment ,698 N oncapital Facility P rojects Capital Equipment Capital Facility P rojects TOTAL OPERATING EXPENSES $106,081 $161,518 $267,599 NET REVENUES $83,839 $195,209 $279,048 DEBT SERVICE Bond Principal Payments ($27,213) ($45,905) ($73,118) Interest Expense ($46,378) ($78,234) ($124,612) RESERVE REQUIREMENTS ($1,046) ($1,630) ($2,676) NONOPERATING REVENUE* Interest Income $9,444 $16,148 $25,592 NET REMAINING REVENUE $18,646 $85,589 $104,234 * Changes in the fair value of the Forward Interest Rate Swaps are reflected as non-operating revenue and are recorded as unrealized gains or losses on the Statement of Revenues, Expenses and Changes in Net Assets. This is reported in the Authority' monthly and annual financial Statements and is not reflected within the Operating Accounts or Interest Income. Neither the unrealized gain nor unrealized loss affects the rates and charges to the airlines. 55

66 STATEMENT OF OPERATIONS 2008 STATEMENT OF OPERATIONS BY AIRPORT (dollars in thousands) REAGAN NATIONAL DULLES TOTAL OPERATING REVENUES Rents $72,548 $95,969 $168,517 Rent Transfers 15,684 34,300 49,984 Landing Fees 35,615 65, ,076 Landing Fee Transfers 5,588 20,801 26,389 Tenant Equipment Charges 1, ,466 Tenant Equipment Transfers Concessions 68, , ,114 TSA Security Fees ,341 International Arrivals Building Fees 0 7,145 7,145 International Arrivals Building Fees Transfers 0 3,098 3,098 Passenger Conveyance Fees 0 17,743 17,743 Passenger Conveyance Transfers 0 5,886 5,886 U tilities 2,034 6,056 8,090 Other Revenues 1,614 4,534 6,148 TOTAL OPERATING REVENUES $204,415 $381,339 $585,754 OPERATING EXPENSES Personnel Compensation $43,840 $62,623 $106,463 Employee Benefits 15,600 22,593 38,193 Travel ,207 Lease and Rental Payments 2,687 7,298 9,984 U tilities 8,306 15,711 24,017 Telecommunications ,418 JP Morgan Chase Building Services 29,212 45,123 74,335 Supplies, Materials and Fuels 4,883 9,206 14,089 Insurance and Risk Management 4,500 4,500 9,000 Noncapital Equipment ,735 Noncapital Facility Projects Capital Equipment Capital Facility Projects TOTAL OPERATING EXPENSES $112,088 $169,302 $281,389 NET REVENUES $92,327 $212,038 $304,365 DEBT SERVICE Bond Principal Payments ($30,778) ($55,104) ($85,882) Interest Expense ($42,365) ($75,850) ($118,215) RESERVE REQUIREMENTS ($904) ($1,395) ($2,298) NONOPERATING REVENUE* Interest Income $10,820 $16,743 $27,563 NET REMAINING REVENUE $29,101 $96,432 $125,533 * Changes in the fair value of the Forward Interest Rate Swaps are reflected as non-operating revenue and are recorded as unrealized gains or losses on the Statement of Revenues, Expenses and Changes in Net Assets. This is reported in the Authority' monthly and annual financial Statements and is not reflected within the Operating Accounts or Interest Income. Neither the unrealized gain nor unrealized loss affects the rates and charges to the airlines. 56

67 GAAP PRESENTATION OF STATEMENT OF OPERATIONS 2008 STATEMENT OF OPERATIONS BY AIRPORT GAAP PRESENTATION (dollars in thousands) REAGAN NATIONAL DULLES TOTAL OPERATING REVENUES Rents $72,548 $95,969 $168,517 Landing Fees 35,615 65, ,076 Tenant Equipment Charges 1, ,466 Concessions 82, , ,202 TSA Security Fees ,341 International Arrivals Building Fees 0 7,145 7,145 Passenger Conveyance Fees 0 17,743 17,743 JP Morgan Chase Building 0 1,716 1,716 FAA Tower 0 3,480 3,480 Telecom 2,119 2,119 4,238 Utilities 2,034 6,056 8,090 Other Revenues 1,614 4,534 6,148 TOTAL OPERATING REVENUES $199,373 $351,789 $551,162 OPERATING EXPENSES Personnel Compensation $43,840 $62,623 $106,463 Employee Benefits 15,600 22,593 38,193 Travel ,207 Lease and Rental Payments 2,687 7,298 9,985 Utilities 8,306 15,711 24,017 Telecommunications 2,828 2,828 5,656 JP Morgan Chase Building 0 1,749 1,749 FAA Tower Services 51,912 84, ,660 Supplies, Materials and Fuels 4,883 9,206 14,089 Insurance and Risk Management 4,500 4,500 9,000 Noncapital Equipment ,735 Noncapital Facility Projects Depreciation 65,349 82, ,779 TOTAL OPERATING EXPENSES $202,256 $295,605 $497,861 NET REVENUES ($2,883) $56,184 $53,301 DEBT SERVICE Interest Expense ($42,365) ($75,850) ($118,215) NONOPERATING REVENUE PFC Revenue $40,620 $54,216 $94,836 State Grant Revenue 0 2,000 2,000 Federal - Grant Revenue (Pay/Go & AIP) 2,225 88,788 91,013 Interest Income 10,820 16,743 27,563 NET INCOME $8,417 $142,081 $150,498 57

68 STATEMENT OF OPERATIONS FINANCIAL TRENDS $ millions Total Revenues Operating Expenses Net Revenues Debt Service Net Remaining Revenue Actual 2006 Budget 2007 Budget

69 FUND BALANCE AND ESTIMATED CASH FLOW ACTUAL ESTIMATE ESTIMATE (dollars in thousands) OPERATING ACCOUNTS 1/1 Balance Unrestricted $48,871 $48,871 $48,871 Operating Revenues including Transfers 497, , ,754 Airports share of NRR for operating Expense 14,575 12,316 18,737 Grant Revenue - Fund 20 Only 1, Interest Earnings 27,735 15,729 12,375 Total 540, , ,866 Disbursements: Operating Expenses, Net (239,539) (249,015) (281,389) Transfers to Debt Service Accounts (164,019) (185,360) (204,097) Transfers to Authority Capital Fund (119,794) (134,050) (126,299) Transfers to Sinking Fund and Other Reserves (15,068) (4,229) (2,783) Transfers to Reserves/Restricted (2,412) (2,676) (2,298) Total Disbursements (540,832) (575,330) (616,866) 12/31 Total Unrestricted 48,871 48,871 48,871 Reserves/Restricted: Operation and Maintenance 41,923 44,600 46,898 Emergency Repair and Rehabilitation 5,723 5,917 6,118 Self Insurance Lease Obligation /31 Total Restricted 47,987 50,858 53,357 12/31 Balance Unrestricted & Restricted Operating Funds $96,858 $99,729 $102,229 1/1 Balance (COMIP Fund) $80,885 $93,179 $112,631 Receipts: Transfers from Operating Fund 100, , ,050 Grants - Fund 60 Only ,200 Total Receipts 101, , ,250 Total Available 182, , ,881 Disbursements: Projects (14,375) (14,263) (27,643) Airline Share of Net Remaining Revenue (74,682) (86,881) (81,134) Total Disbursements (89,057) (101,144) (108,777) 12/31 Balance $93,179 $112,631 $139,104 59

70 FUND BALANCE AND ESTIMATED CASH FLOW ACTUAL ESTIMATE ESTIMATE (dollars in thousands) CONSTRUCTION ACCOUNTS 1/1 Balance $243,528 $345,631 $180,910 Receipts: Commercial Paper 179,000 60,000 0 Bond Proceeds 737, , ,000 Bond Premiums/Discounts + Other sources of funds 36,038 29,816 26,884 Interest Earnings 18,593 14,762 15,188 Grants - Bond Funds only 54,240 25,539 91,813 Passenger Facility Charges 81,490 78,956 94,836 Passenger Facility Charges Financing 0 30,000 0 Total Receipts 1,107, , ,721 Disbursements: Projects-in-Process (639,942) (791,174) (672,785) Reimbursements from Authority Capital Fund Payments to PFC Line of Credit (12,916) (15,538) (15,538) Payments to Cost of Issuance, Discount etc (12,181) (8,708) (7,211) Estimated Capitalized interest payments (62,094) (74,835) (82,435) Payment to DSR (72,407) (32,283) (48,459) Transfers to Debt Service - Refunding (205,583) (175,716) 0 Total Disbursements (1,005,123) (1,098,254) (826,428) 12/31 Balance $345,631 $180,910 $206,203 DEBT SERVICE ACCOUNTS Debt Service Reserve: 1/1 Balance $220,817 $290,469 $322,397 Less Debt Service Adjustments (2,755) (355) 0 Bond Proceeds 72,407 32,283 48,459 12/31 Debt Service Reserve Balance 290, , ,856 Debt Service Interest: 1/1 Balance 36,102 35,638 35,638 Transfers from Operating Accounts 164, , ,097 Transfers from Construction Accounts 62,094 74,835 82,435 Total Debt Service P & I 262, , ,170 Disbursements: Principal and Interest Payments (226,577) (260,195) (287,664) Total Disbursements (226,577) (260,195) (287,664) 12/31 Debt Service Interest Balance $35,638 $35,638 $34,506 60

71 DEBT PROGRAM The Authority uses debt financing to fund a major portion of its capital program for Reagan National and Washington Dulles. AIRPORT SYSTEM REVENUE BONDS Subordinate Bonds In 1988, to provide for the initial stages of the CCP, and other capital financing needs while negotiations with the Airlines on the Agreement were underway, five series of subordinated bonds backed by major financial institutions were issued for $263,410,000. These subordinate bonds have either been refunded or the debt retired. Since October 1998, no subordinate bonds have been outstanding. Senior Bonds A Senior Master Indenture (Master Indenture) was created in 1990 for the Authority. A Supplemental Indenture is required before a series of Bonds is issued under the Master Indenture. The Master Indenture was amended effective September 1, 2001, to in part, change the definition of Annual Debt Service to accommodate the issuance of secured commercial paper, to permit the Authority to release certain revenues from the definition of revenues, and to expand the list of permitted investments to include innovative investment vehicles designed to increase the return on the Authority investments. A total of $5,769,640,000 of bonds, excluding the Commercial Paper (CP) and PFC Notes, has been issued by the Authority since March The proceeds of the Bond issues are used to finance capital improvements at both Airports and refund outstanding Bonds when savings meet the Authority s refunding criteria. The Authority anticipates the issuance of bonds over the next year to fund projects in the CCP and refund outstanding debt when advantageous. See the Summary of Issued Debt table on pages 66 and 67 for details. Insurance As of September 30, 2007, the Authority had $3,899,120,000 or 98.8 percent of Bonds insured either by Municipal Bond Investors Assurance Corporation (MBIA), Financial Guaranty Insurance Company (FGIC), Financial Security Assurance (FSA) Ambac Assurance Corporation (Ambac), or XL Capital Assurance. A total of $47,205,000 or 1.2 percent are uninsured. See the table on the following page 65. Commercial Paper (CP) Program The Authority authorized a CP Program in an aggregate principal amount not to exceed $500,000,000 outstanding at any time. The Authority currently has in place three credit facilities allowing the Authority to draw up to $420,000,000 in CP Notes at any given time. The CP Program is the primary funding source for on-going capital expenditures. Long-term fixed and/or variable rate issues will be used to periodically recycle the CP capacity. Series One CP Notes The Series One CP Notes were issued as of March 1, The Series One CP Notes are secured by certain pledged funds including Net Revenues on parity with the Bonds. They are further secured by an irrevocable direct pay letter of credit issued by JPMorgan Chase Bank which expires in March The amount of the Notes increased from $100,000,000 to $220,000,000 in November Series Two CP Notes The issuance of up to $200,000,000 of the Series Two CP Notes was authorized January 1, The Series Two CP Notes are secured by certain pledged funds including Net Revenues on parity with the Bonds. They are further secured by an irrevocable direct pay letter of credit issued by Landesbank Baden-Württemberg (LBBW) and Westdeutsche Landesbank (WestLB), which expires in December

72 DEBT PROGRAM Ratings The uninsured fixed rate bonds are rated long-term Aa3 by Moody s, AA- by S&P, and AA by Fitch Ratings. On August 27, 2007, Fitch Ratings upgraded the Authority s AA- to AA rating with outlook Stable. On August 24, 2007, Moody s affirmed the Authority s Aa3 rating and with outlook Positive and S&P rated the Authority to AA- with Stable Outlook. The insured fixed rate bonds are rated Aaa by Moody s, AAA by S&P, and AAA by Fitch Ratings. The insured variable rate bonds (Series 2002C) have been assigned a long-term rating of Aaa and a shortterm rate of VMIG 1 by Moody s, a long-term rate of AAA and short-term rate of A-1+ by S&P, and long-term rate of AAA and a short-term rate of F1+ by Fitch Ratings. The CP Program is rated P-1 short term by Moody s, A-1+ short term by S&P, and F1+ short term by Fitch Ratings. Forward Interest Rate Swaps The Authority has entered into certain interest rate swap agreements (the Swap Agreements ) in an effort to lower its overall cost of borrowing. All of the Authority s Swap Agreements (i) were entered into in connection with the planned issuance of variable rate debt and represent floating-to-fixed rate agreements and (ii) were written on a forward starting basis to either hedge future new money Bonds or to synthetically advance refund Bonds that could not be advance refunded on a conventional basis because of their tax status. With respect to those Swap Agreements that have not yet become effective, the Authority has the ability to terminate the agreements, extend the effective date of the agreements or allow the agreements to become effective. Should the Authority decide not to proceed with a Swap Agreement prior to its effective date, depending on market conditions at the time of the decision, the Authority may be required to make a termination payment to the counterparty or may receive a termination payment from a counterparty. The Authority also has the ability to terminate a Swap Agreement after its effective date. To manage its exposure to counterparty risk, the Authority has entered into Swap Agreements only with counterparties having a rating of at least A. S&P has assigned the Authority an overall Debt Derivative Profile of 1 on a scale of 1 to 4, with 1 representing the lowest risk and 4 representing the highest risk. The Authority s obligations under the Swap Agreements constitute Junior Lien Obligations of the Authority secured by a pledge of the Authority s Net Revenues that is subordinate to the pledge of Net Revenues securing the Bonds and any Subordinated Bonds issued in the future. Termination payments owed by the Authority under the Swap Agreements, if any, would be payable from funds subordinated to Bonds, Subordinated Bonds and Junior Lien Obligations. The Authority follows FASB 133 for its accounting and financial reporting of the Swap Agreements. Consistent with FASB 133, monthly changes in the fair value of the Authority s Swap Agreements are recorded as unrealized gains or losses on the Statement of Revenue, Expenses and Changes in Net Assets. The chart that follows provides summary information with respect to the Authority s current Swap Agreements. 62

73 DEBT PROGRAM Authority s Current Swap Agreements Rate Nature Rate Paid Trade Effective Original Outstanding Paid by of by Date Date Swap Provider Notional Notional Counterparty Swap Authority 07/31/ /29/2002 Lehman Brothers $161,190,000 $132,260, % LIBOR Synthetic 4.445% Special Financing, Inc. Advance Merrill Lynch $80,590,000 $66,120,000 2 Refunding 05/13/ /01/2008 Wachovia $65,000,000 Forward Starting 72% LIBOR Hedge Future 3.84% 1 Bank of Montreal $35,000,000 Swap Borrowing Bank of Montreal $75,000, % 2 05/1320/05 10/01/2011 Wachovia $125,000,000 Forward Starting 72% LIBOR Hedge Future 3.862% 2 Swap Borrowing 06/15/ /01/2009 Bear Stearns $190,000,000 Forward Starting 72% LIBOR Hedge Future 4.10% Financial Products $110,000,000 Swap Borrowing Bank of America 06/15/ /01/2010 Wachovia $170,000,000 Forward Starting 72% LIBOR Hedge Future 4.11% Lehman Brothers $80,000,000 Swap Borrowing Commercial Bank 1 On August 30, 2006, the Authority realized the market value of the 2006 Swaps and deferred the start date from October 1, 2006 to October 1, 2008: the Authority (a) received $2.766 million from the 2006 Swap Counterparties (Wachovia paid the Authority $1,798,250 and Bank of Montreal paid the Authority $968,288), reflecting the then-current market value of the 2006 Swaps, and (b) extended the start date of the 2006 Swaps from October 1, 2006 to October 1, 2008, with a new fixed swap rate of 3.84%, also reflecting then-current interest rate levels (an increase from the prior rate of %). 2 On September 12, 2007, the Authority realized the market value of the 2007 Swaps and deferred the start date from October 1, 2007 to October 1, 2008 and October 1, 2011: the Authority (a) received $2.060 million from the 2007 Swap Counterparties (Wachovia paid the Authority $1,255,000 and Bank of Montreal paid the Authority $805,200), reflecting the then-current market value of the 2007 Swaps; (b) extended the start date of $75 million with Bank of Montreal from October 1, 2007 to October 1, 2008 with a new fixed rate swap rate of %, also reflecting then-current interest rate levels (an increase from the prior rate of 3.55%) and (c) extended the start date of $125 million with Wachovia from October 1, 2007 to October 1, 2011 with a new fixed swap rate of 3.862%, also reflecting then-current interest rate levels (an increase from the prior rate of 3.55%). Future Bonds The Authority anticipates issuing additional Bonds to fund projects in the CCP and also to refund certain outstanding CP Notes and Bonds. The Authority annually, with periodic updates, prepares a Plan of Finance that is presented to the Finance Committee. The Authority has sufficient proceeds to adequately fund projects in the CCP until Summer of The Authority expects to issue up to $3.2 billion in additional Bonds to fund approximately $2.4 billion of project costs for the CCP. PASSENGER FACILITY CHARGES AND LINE OF CREDIT AGREEMENT The Authority was granted permission by the FAA to collect a $3.00 PFC beginning November 1, 1993, at Reagan National and January 1, 1994, at Washington Dulles, and to use PFC funds collected to finance the projects described in the Authority s approved PFC applications. In February 2001, the Authority received FAA approval to increase PFC collection authority from $3.00 to $4.50 on each qualified enplaning passenger. A portion of PFC revenues is being used to finance certain CCP projects previously expected to be financed through the issuance of bonds. The Authority also used PFC revenues to fund a portion of Midfield Concourse B at Washington Dulles. To provide needed liquidity to fund these capital projects, the Authority issued its Flexible Term PFC Revenue Notes in a commercial paper mode in which the interest rate is reset for periods of one to 270 days. The PFC Notes were authorized in a maximum principal amount of $255,000,000 and were purchased by the Bank of America. In November 2005, the Authority renegotiated with the Bank of America an increase in the PFC Notes to $500,000,000 and an extension of the term to 2017, the expiration of the new PFC application. The Bank of America, along 63

74 DEBT PROGRAM with several other banks, also provides a letter of credit to secure the payment of principal and interest on the PFC notes. LONG-TERM DEBT MANAGEMENT GUIDELINES The Authority has established these guidelines for managing its long-term debt.! All reasonable financing alternatives before undertaking debt financing, including PFCs and grants will be explored.! Pay-as-you-go financing of capital improvements will be utilized where feasible.! Long-term debt will not be used to fund current noncapital operations.! Debt issues will be structured based on the attributes of the types of projects financed, market conditions at the time of debt issue, and the policy direction provided by the Board.! Bonds will be paid back in a period not exceeding the expected life of those projects. The exceptions to this requirement are the traditional costs of marketing and other costs of issuing debt, capitalized interest for design and construction of capital projects, and small component parts that are attached to major equipment purchases.!. Refunding existing debt will be considered when the total present value cost (including debt issuance costs of the refunding debt) is less than the present value cost of the existing debt.! Financial advisors will be retained for advice on debt structuring.! Good communication will be maintained with bond rating agencies about the Authority s financial condition.! Annually the Business Plan will include the Plan of Finance. Monthly updates will be submitted to the Finance Committee.! A procedure providing continuing disclosure will be followed, including filing certain annual financial information and operating data with all Nationally Recognized Municipal Securities Information Repositories (NRMSIRs) and with any Virginia qualifying State Information Depository (SID) and certain event notices with the Municipal Securities Rulemaking Board and any SID. DEBT SERVICE COVERAGE The Master Indenture includes a rate covenant provision specifying the Authority will fix and adjust fees and other charges for use of the Authority, including services rendered by the Authority pursuant to the Agreement calculated to be at least sufficient to produce net revenues to provide for the larger of the following: (1) amounts needed for making required deposits to various accounts in the fiscal year or (2) an amount not less than 125 percent of the annual debt service with respect to Bonds. The debt service coverage for 2006 through 2008 is as follows: DEBT SERVICE COVERAGE Actual Estimate Budget Reagan National 1.55x 1.52x 1.46x Washington Dulles 1.93x 1.94x 1.76x Combined Airports 1.78x 1.77x 1.65x 64

75 DEBT PROGRAM SUMMARY OF INSURED/UNINSURED BOND SERIES MWAA - Bond Insurers* Insurer* S eries FR/VR** Outstanding ($M) % of Insured Portfolio Percentages Ambac Series 2005D FR 11,450,000 Series 2007A FR 164,460,000 Series 2007B FR 508,870,000 subtotal 684,780, % MWAA Bond Insurers as % of Insured Portfolio FGIC Series 1999A FR 89,895,000 Series 2002A FR 204,330,000 Series 2002B FR 3,005,000 Series 2003A FR 172,185,000 Series 2003B FR 31,695,000 Series 2003C FR 44,965,000 Series 2006B FR 400,000,000 Sereis 2006C FR 37,865,000 subtotal 983,940, % MBIA 27.01% XL 3.61% Ambac 17.56% FS A Series 2002C VR 217,730,000 Series 2002D FR 98,185,000 Series 2004B FR 250,000,000 Series 2004C-1 FR 71,175,000 Series 2004C-2 FR 99,485,000 Series 2006A FR 300,000,000 subtotal 1,036,575, % Series 1993A FR 0 Series 1994A FR 0 MBIA Series 1998B FR 216,865,000 Series 2001A FR 257,630,000 Series 2001B FR 12,280,000 Series 2004A FR 13,580,000 Series 2004D FR 197,000,000 Series 2005A FR 305,920,000 Series 2005B FR 19,775,000 Series 2005C FR 30,000,000 subtotal 1,053,050, % XL Series 2003D VR 140,775,000 subtotal 140,775, % FSA 26.58% FGIC 25.23% P. G. Corbin & Company, Inc. October 11, 2007 MWAA Bond Insurer as % of Total Bond Portfolio Uninsured XL 1.20% 3.57% Ambac 17.35% MBIA 26.68% FSA 26.27% FGIC 24.93% P. G. Corbin & Company, Inc. October 11, 2007 Insured Total 3,899,120, % Uninsured Series 1997A FR 0 Series 1998A FR 495,000 Series 2003B FR 5,010,000 Series 2004C-2 FR 0 Series 2004D FR 20,570,000 Series 2007B FR 21,130,000 Uninsured Total 47,205,000 GRAND Total 3,946,325,000 Insured 98.80% Uninsured 1.20% * As of Close of the Series 2007B Bonds on September 27, ** FR= Fixed Rate, VR = Variable Rate 65

76 DEBT PROGRAM SUMMARY OF DEBT ISSUED Insurer Dated Refunded with Issue Series Principal Purpose of Issue or LOC Date Retired on General Airport Suborindated Oct 1998 with Revenue 1988A $128,760,000 Finance capital improvements FGIC March 1988 Series 1998B General Airport Suborindated Revenue (Variable Rate) 1988B $55,580,000 Finance capital improvements Morgan May 1988 March 1993 with Series 1993B General Airport Suborindated Revenue 1988C $18,380,000 Payment to Federal Government to satisfy a liability relating to retirement benefits for certain Authority employees Morgan June 1988 Payment to Federal Government to satisfy a liability relating to retirement benefits for certain Authority employees Morgan June 1989 General Airport Suborindated Revenue 1988D $6,125,000 General Airport Suborindated Finance the cost of land and capital Revenue 1989A $54,565,000 improvements at IAD FGIC Jan 1989 Retired on Oct 1998 Retired on Oct 1998 Nov 1997 with Series 1997C Airport System Revenue Bonds 1990A $246,000,000 Finance capital improvements FGIC Feb 1990 and April 2001 with CP BANs A & B Airport System Revenue Bonds 1992A $300,000,000 Finance capital improvements MBIA March 1992 Oct 2002 with Series 2002C Oct 2003 with Series 2003B, Oct 2004 with Series 2004A Airport System Revenue and Refunding Bonds 1993A $73,190,000 Finance capital improvements MBIA March 1993 Airport System Revenue and Finance capital improvements and refund Refunding Bonds 1993B $40,500,000 outstanding Series 1988B Bonds MBIA March 1993 Oct 2003 with Series 2003C Airport System Revenue Bonds 1994A $500,000,000 Finance capital improvements MBIA June 1994 Oct 2004 with Series 2004C-1, 2004C-2, 2004D Flexible Term PFC Revenue Notes PFCs To match cash flow needs of PFC $155,000,000 projects in application 1. BoA Aug 1994 Jan 2005 Airport System Revenue Bonds 1997A $40,680,000 Finance capital improvements FGIC May 1997 April 2005 with Series 2005B Sept 2005 with Series 2007A Airport System Revenue Bonds 1997B $209,320,000 Finance capital improvements FGIC May 1997 Airport System Revenue and Finance capital improvements and refund Refunding Bonds (Variable Rate) 1997C $100,000,000 outstanding Series 1989A Bonds UBS Oct 1997 Airport System Revenue Bonds 1998A $20,415,000 Finance capital improvements None June 1998 Airport System Revenue and Finance capital improvements and refund Refunding Bonds 1998B $279,585,000 outstanding Series 1988A Bonds MBIA June 1998 Airport System Revenue and Refunding Bonds 1999A $100,000,000 Refund outstanding Series 1997C Bonds FGIC April 1999 Flexible Term PFC Revenue Notes To match cash flow needs of PFC (Additional) PFC's $100,000,000 projects in application 2. BoA June 1999 Bond Anticipation Commercial Paper Interim financing of capital improvements Notes CP A $20,000,000 at DCA and IAD WestLB April 2000 Bond Anticipation Commercial Paper Refund a portion of outstanding Series Notes CP A $130,000, A Bonds WestLB Aug 2000 Bond Anticipation Commercial Paper Refund a portion of outstanding Series Notes CP B $40,000, A Bonds LBBW Oct 2000 Bond Anticipation Commercial Paper Refund final portion of outstanding Notes CP B $16,000,000 Series 1990A Bonds LBBW Feb 2001 Airport System Revenue Bonds 2001A $286,165,000 Finance capital improvements MBIA April 2001 Airport System Revenue Bonds 2001B $13,835,000 Finance capital improvements MBIA April 2001 Bond Anticipation Commercial Paper Notes CP B $44,000,000 Interim financing of capital improvements LBBW Feb 2002 Airport System Revenue Commerical Paper Notes CP One $100,000,000 Finance capital improvements JP Morgan March 2002 May 1999 with Series 1999A Nov 2006 with Series 2006C Jan 2005 with CP Two Jan 2005 with CP Two Oct 2003 with Series 2003A Oct 2003 with Series 2003A Oct 2003 with Series 2003A Nov 2002 with Series 2002D 66

77 DEBT PROGRAM SUMMARY OF DEBT ISSUED (continued) Insurer Dated Refunded with Issue Series Principal Purpose of Issue or LOC Date Retired on Airport System Revenue Bonds 2002A $222,085,000 Finance capital improvements FGIC June 2002 Airport System Revenue Bonds 2002B $27,915,000 Finance capital improvements FGIC June 2002 Nov 2006 with Series 2006C Airport System Revenue Variable Rate p Refunding y Bonds g 2002C $265,735,000 Refund outstanding Series 1992A Bonds FSA Aug 2002 Bonds 2002D $107,235,000 Refund outstanding Series CP One Notes FSA Aug 2002 Airport System Revenue Refunding Bonds 2003A Finance capital improvements and refund $185,000,000 outstanding Series B BANs FGIC Oct 2003 Airport System Revenue Refunding Bonds 2003B Refund a portion of the outstanding $44,135,000 Series 1993A Bonds FGIC Oct 2003 Taxable Airport System Revenue Refunding Bonds 2003C Reimburse the Authority the costs of certain capital projects at IAD and refund $52,565,000 outstanding Series 1993B Bonds FGIC Oct 2003 Airport System Revenue Variable Rate Bonds (Auction Rate Securities) 2003D $150,000,000 Finance capital improvements XL Oct 2003 Airport System Revenue Refunding Bonds 2004A Refund final portion of outstanding $13,600,000 Series 1993A Bonds MBIA Aug 2004 Airport System Revenue Bonds 2004B $250,000,000 Finance capital improvements FSA May 2004 Airport System Revenue Refunding Bonds 2004C-1 Refund a portion of outstanding Series $97,730, A Bonds FSA July 2004 Airport System Revenue Refunding Bonds 2004C-2 Refund a portion of outstanding Series $111,545, A Bonds FSA Aug 2004 Airport System Revenue Refunding Bonds 2004D Refund a portion of outstanding Series $218,855, A Bonds MBIA Aug 2004 Airport System Revenue Commerical Paper Notes CP Two $141,000,000 Interim financing of capital improvements WestLB/L BBW Jan 2005 April 2005 with Series 2005A Airport System Revenue Commerical Paper Notes CP Two $59,000,000 Interim financing of capital improvements WestLB/L BBW March 2005 Refund a portion of the outstanding Airport System Revenue Bonds 2005A $320,000,000 Series CP Two Notes MBIA April 2005 Airport System Revenue Refunding Refund a portion of the outstanding Bonds 2005B $19,775,000 Series 1997A Bonds MBIA April 2005 Taxable Airport System Revenue Bonds 2005C $30,000,000 Finance capital improvements MBIA April 2005 Airport System Revenue Commerical WestLB/L Paper Notes CP Two $75,000,000 Interim financing of capital improvements BBW Aug 2005 Airport System Revenue Refunding Refund a portion of the outstanding Bonds 2005D $11,450,000 Series 1997A Bonds AMBAC Sept 2005 Flexible Term PFC Revenue Notes To match cash flow needs of PFC (Additional) PFC's $245,000,000 projects BoA Nov 2005 Refund CP One Notes, a portionof CP Two Notes and Finance capital Airport System Revenue Bonds 2006A $300,000,000 improvements FSA Jan 2006 Airport System Revenue Commerical WestLB/L Paper Notes CP Two $179,000,000 Interim financing of capital improvements BBW Aug 2006 Airport System Revenue Bonds 2006B $400,000,000 Finance capital improvements FGIC Nov 2006 Airport System Revenue Refunding Refund a portion of the outstanding Bonds 2006C $37,865,000 Series 1998A and 2002B Bonds FGIC Nov 2006 Airport System Revenue Refunding Refund a portion of the outstanding Bonds 2007A $164,460,000 Series 1997B Bonds AMBAC Sept 2005 Airport System Revenue Commerical WestLB/L Paper Notes CP One $60,000,000 Interim financing of capital improvements BBW Aug 2007 Airport System Revenue Bonds 2007B $530,000,000 Finance capital improvements AMBAC Sept 2007 April 2005 with Series 2005A 67

78 DEBT PROGRAM SUMMARY OF BONDED DEBT SERVICE Bonds Date Outstanding Airport Revenue Bonds of Issue Maturity 01/01/2008 Debt Service Debt Service Senior Debt: Series 1997A 2 05/15/ $0 $971,636 $0 Series 1997B 1 05/15/ ,157,714 0 Series 1998A 2 06/15/ , , ,028 Series 1998B 1 06/15/ ,865,000 20,090,066 20,086,026 Series 1999A 1 05/05/ ,895,000 5,996,822 5,996,048 Series 2001A 1 04/04/ ,630,000 19,126,210 19,127,440 Series 2001B 2 04/01/ ,280, , ,069 Series 2002A 1 06/04/ ,330,000 14,911,690 14,911,178 Series 2002B 2 06/04/ ,005, , ,034 Series 2002C 1 08/28/ ,730,000 20,695,430 20,892,699 Series 2002D 1 08/28/ ,185,000 6,991,588 6,990,091 Series 2003A 1 09/11/ ,185,000 12,011,263 12,009,544 Series 2003B 2 09/11/ ,705,000 4,091,345 4,094,390 Series 2003C 3 09/11/ ,965,000 4,488,803 4,486,892 Series 2003D 1 09/11/ ,775,000 8,059,923 8,308,664 Series 2004A 2 08/26/ ,580, , ,481 Series 2004B 1 05/18/ ,000,000 12,503,665 12,503,665 Series 2004C /07/ ,175,000 17,837,500 14,086,563 Series 2004C /12/ ,485,000 5,068,875 5,068,063 Series 2004D 1 08/26/ ,570,000 11,358,646 15,054,610 Series 2005A 1 04/12/ ,920,000 22,836,016 22,838,076 Series 2005B 2 04/12/ ,775, , ,013 Series 2005C 3 04/12/ ,000,000 1,703,619 1,703,619 Series 2005D 2 10/12/ ,450, ,750 1,777,438 Series 2006A 1 01/25/ ,000,000 14,968,750 14,968,750 Series 2006B 1 12/06/ ,000,000 21,104,855 19,734,410 Series 2006C Series 2007A /06/ ,865,000 1,838,998 1,719,583 07/03/ ,460,000 5,769,721 15,106,838 Series 2007B 09/12/ ,000,000 9,317,393 36,829,152 $3,946,325,000 $255,378,620 $281,769,364 Commercial Paper: Series One 08/16/ ,000,000 1,313,837 3,207,540 Series Two 01/12/ ,000,000 8,237,754 10,441,780 $260,000,000 $9,551,591 $13,649,320 TOTAL $4,206,325,000 $264,930,211 $295,418,684 1 Tax Exempt - Federal, but subject to AMT, Tax Exempt Viriginia and D.C. 2 Tax Exempt - Federal, Virginia and D.C. 3 Taxable - Federal, Tax Exempt Virginia and D.C. 68

79 DEBT PROGRAM LONG-TERM DEBT SCHEDULED - AIRPORT REVENUE BONDS Commercial Paper Debt Senior Debt (Long Term) Total Year Principal Interest Principal Interest Debt Service 2008 $400,000 $13,249,320 $87,411,250 $194,358,114 $295,418, ,500,000 2,724,984 90,475, ,182, ,882, ,830, ,926, ,756, ,735, ,364, ,099, ,500, ,675, ,175, ,765, ,608, ,373, ,125, ,216, ,341, ,785, ,657, ,442, ,155, ,461, ,616, ,555, ,192, ,747, ,480, ,493, ,973, ,700, ,476, ,176, ,840, ,562, ,402, ,345, ,202, ,547, ,050, ,500, ,550, ,225, ,293, ,518, ,245,000 99,184, ,429, ,345,000 91,688, ,033, ,985,000 86,385, ,370, ,385,000 80,593, ,978, ,630,000 74,584, ,214, ,320,000 68,885, ,205, ,230,000 63,500, ,730, ,290,000 55,072, ,362, ,645,000 43,829, ,474, ,150,000 32,757, ,907, ,440,000 22,316, ,756, ,520,000 12,385, ,905, ,005,000 3,750,250 78,755,250 TOTAL $38,900,000 $15,974,304 $3,947,166,250 $3,221,107,494 $7,223,148,048 69

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81 2008 OPERATING EXPENSES PROGRAM SUMMARY The Aviation O&M Program provides funding for the daily operation of Reagan National and Washington Dulles, including those functions performed centrally. The 2008 O&M Program level is $485,486,000, which includes $281,389,000 for operating expenses and $204,097,000 for debt service. As elements of the CCP are completed and brought on line, both operating and debt expenses are significantly impacted. Funding levels for the 2008 O&M Program were developed after reviewing revenue forecasts, the impact of funding increases on landing fees, rental rates, and other rates and charges, prior year actuals, current program levels, new operating requirements, and the overall economic climate of the region and airline industry. A staffing increase of 47 positions, from 1,359 to 1,406 is included in The Performance Management Partnership (PMP) Program was implemented on January 1, Salary increases reflecting PMP will be in the 2008 Budget for the period of performance January 1 through December 31, The 2008 Budget includes $4,485,700 for PMP for incumbent staff raises reflecting 5.0 percent increase to compensation expenses. An additional $662,840 was added to the Office of Information Systems and Telecommunications budget to provide for contractual support for the Consolidated Communications Center, radio maintenance, security services, PCI services, quality assurance analyst, a Livelink analyst and GIS database support. Expenses are identified separately for Consolidated Functions, Reagan National and Washington Dulles. The Consolidated Functions activity includes the Offices of the President and Chief Executive Officer, Executive Vice President and Chief Operating Officer, Legal, Audit, Air Service Planning and Development, Communications, Finance, Engineering, Business Administration, Human Resources, Information and Telecommunications Systems, and the central staff of Public Safety. Expenses for the Board of Directors are also included in the President and Chief Executive Officer s program, although these expenses are accounted for separately during budget execution. The expenses for the Police and Fire Departments are included in the expenses for Reagan National and Washington Dulles. Utilities costs are estimated to increase by $869,000 or 3.8 percent in Additional funding of $3,183,600 was included for major contract escalation increases for the airport lease payment, 800 MHz channel licensing, radio equipment maintenance, software application support, waste removal and recycling, landscaping, elevator and escalator maintenance, unarmed guard services at both Airports, custodial services and snow removal services at Washington Dulles. To support new facilities coming on line at Washington Dulles in 2008, a total of $1,267,200 was included to provide for custodial services, snow and ice supplies, utility supplies and various maintenance contracts. 71

82 2008 OPERATING EXPENSES 2007 OPERATION AND MAINTENANCE PROGRAM BY ORGANIZATION (dollars in thousands) CONSO LIDATED REAGAN FUNCTIO NS NATIO NAL DULLES TO TAL OPERATING EXPENSES Personnel Compensation $28,389 $26,802 $43,813 $99,004 Employee Benefits 9,548 10,791 16,534 36,874 Travel ,207 Lease and Rental Payments 4, ,488 9,496 Utilities 12 7,431 15,705 23,148 Telecommunications 1, ,495 JP Morgan Chase Building (73) 0 0 (73) Services 24,984 14,640 31,960 71,584 Supplies, Materials and Fuels 2,137 3,714 7,401 13,251 Insurance and Risk Management 9, ,000 Noncapital Equipment 1, ,698 Noncapital Facility Projects Capital Equipment Capital Facility Projects Subtotal $82,426 $64,832 $120,342 $267,599 DEBT SERVICE Bond Principal Payments $0 $27,213 $45,905 $73,118 Interest Expense 0 46,378 78, ,612 Subtotal $0 $73,591 $124,139 $197,730 TOTAL OPERATION & MAINTENANCE PROGRAM $82,426 $138,423 $244,481 $465,329 72

83 2008 OPERATING EXPENSES 2008 OPERATION AND MAINTENANCE PROGRAM BY ORGANIZATION (dollars in thousands) CONSOLIDATED REAGAN FUNCTIONS NATIONAL DULLES TOTAL OPERATING EXPENSES Personnel Compensation $30,585 $28,547 $47,331 $106,463 Employee Benefits 10,165 10,518 17,511 38,193 Travel ,207 Lease and Rental Payments 5, ,739 9,984 Utilities 12 8,300 15,705 24,017 Telecommunications 1, ,418 JP Morgan Chase Building Services 26,799 15,812 31,723 74,335 Supplies, Materials and Fuels 2,137 3,815 8,138 14,089 Insurance and Risk Management 9, ,000 Noncapital Equipment 1, ,735 Noncapital Facility Projects Capital Equipment Capital Facility Projects Subtotal $87,319 $68,445 $125,626 $281,389 DEBT SERVICE Bond Principal Payments $0 $30,778 $55,104 $85,882 Interest Expense 0 42,365 75, ,215 Subtotal $0 $73,143 $130,954 $204,097 TOTAL OPERATION & MAINTENANCE PROGRAM $87,319 $141,588 $256,580 $485,486 73

84 2008 OPERATING EXPENSES OPERATION AND MAINTENANCE PROGRAM (dollars in thousands) ACTUAL BUDGET BUDGET OPERATING EXPENSES Personnel Compensation $86,776 $99,004 $106,463 Employee Benefits 26,506 36,874 38,193 Travel 1,242 1,207 1,207 Lease and Rental Payments 9,520 9,496 9,984 Utilities 19,610 23,148 24,017 Telecommunications 1,554 1,495 1,418 JP Morgan Chase Building 304 (73) 33 Services 63,154 71,584 74,335 Supplies, Materials and Fuels 10,635 13,251 14,089 Insurance and Risk Management 6,927 9,000 9,000 Noncapital Equipment 1,718 1,698 1,735 Noncapital Facility Projects Capital Equipment Capital Facility Projects Subtotal $229,328 $267,599 $281,389 DEBT SERVICE Bond Principal Payments $68,137 $73,118 $85,882 Interest Expense 95, , ,215 Subtotal $163,355 $197,730 $204,097 TOTAL OPERATION & MAINTENANCE PROGRAM $392,683 $465,329 $485,486 74

85 2008 OPERATING EXPENSES CONSOLIDATED FUNCTIONS Operating Expenses Difference Permanent Positions Personnel Compensation and Benefits $ 37,937,200 $ 40,749,400 $2,812,200 Other Operating Expenses 44,488,500 46,569,100 2,080,600 Total $ 82,425,700 $ 87,318,500 $4,892,800 Personnel Compensation and Benefits Expenses $2,812,200 I I I An increase $2,189,800 includes funding for filling authorized vacant positions, the PMP Program and annualization of 2008 positions filled for only a portion of An additional $5,700 is included for overtime. An additional $150,900 is a combination of the Authority s share of employee health and life insurance costs in This includes the increase in the OPEB cost in I An increase of $662,840 for services includes funding for the wireless and radio systems network management support, technical support for the new Consolidated Communications Center, and PCI and GIS program support. In addition, contractual services to support the Livelink Program and Reagan National s work order system. I The net cost for Telecommunications $1,417,800, a decrease of $77,000 from I The net cost for the JP Morgan Building is $33,200, an increase of $106,000 from I An increase of $465,800 in retirement. This includes a slight increase in the Authority s contribution percentage reflecting additional positions and annualization of 2008 positions filled for only a portion in Other Operating Expenses $2,080,600 I I An increase of $236,000 for other lease and rental payments, resulting in an increase in the Airport Lease payment to the Federal Government. An increase of $1,152,774 was included for contract escalation costs. These services include 800MHz channel licensing, radio equipment maintenance, data processing contractual services and software application support. 75

86 2008 OPERATING EXPENSES RONALD REAGAN WASHINGTON NATIONAL AIRPORT Operating Expenses Difference Permanent Positions Personnel Compensation and Benefits $ 37,593,300 $ 39,064,700 $ 1,471,400 Other Operating Expenses 27,238,400 29,380,200 2,141,800 Subtotal O&M $ 64,831,700 $ 68,444,900 $ 3,613,200 Bond Principal Payments $ 27,213,000 $ 30,778,000 $ 3,565,000 Interest Expenses 46,378,000 42,365,000-4,013,000 Subtotal Debt Service $ 73,591,000 $ 73,143,000 $ -448,000 Total $ 138,422,700 $ 141,587,900 $ 3,165,200 Personnel Compensation and Benefits Expenses $1,471,400 supplies and unarmed guard services, and a variety of miscellaneous repairs. I I I I An increase of $1,435,300 funds the PMP Program, filling authorized vacant positions, and the annualization in 2008 of positions filled for only a portion of An increase of $309,800 in overtime costs. A decrease of $71,300 for the Authority s share of employee health and life insurance. This amount includes the OPEB cost in A decrease of $202,400 in 2008 for the Authority s share of retirement contributions based on actuarial assumptions and annualization of 2008 positions filled for only a portion in I An additional $600,000 was included to provide for additional terminal cleaning frequencies and related supplies. Debt Service $(448,000) Interest expense is for interest payments on bonds and excludes capitalized interest. Also included in this amount is funding for the liquidity enhancement fees associated with the Authority s CP Program. Other Operating Expenses $2,141,800 I I An increase of $869,000 for utilities is anticipated based on utilization and rate increases. An overall increase of $672,800 is included for contract escalations for contractual services for waste removal and recycling, fuels, snow 76

87 2008 OPERATING EXPENSES WASHINGTON DULLES INTERNATIONAL AIRPORT Operating Expenses Difference Permanent Positions Personnel Compensation and Benefits $ 60,347,400 $ 64,842,000 $ 4,494,600 Other Operating Expenses 59,994,500 60,783, ,200 Subtotal O&M $ 120,341,900 $ 125,625,700 $ 5,283,800 Bond Principal Payments $ 45,905,000 $ 55,104,000 $ 9,199,000 Interest Expense 78,234,000 75,850,000-2,384,000 Subtotal Debt Service $ 124,139,000 $ 130,954,000 $ 6,815,000 Total $ 244,480,900 $ 256,579,700 $ 12,098,800 Personnel Compensation and Benefits Expenses $4,494,600 escalator maintenance, landscaping, and snow removal services and supplies. I I I I An increase of $3,384,000 funds the PMP Program, nine positions, filling vacant positions, the annualization in 2008 of positions filled for only a portion of 2007, and the increase in other personnel compensation costs such as Sunday pay, holiday pay, night differential and awards. An increase of $133,800 in overtime. An increase of $594,600 for the Authority s share of employee health and life insurance costs in This amount includes the increase for the OPEB cost in An increase of $382,200 for the Authority s share of retirement contributions based on actuarial assumptions, additional positions and annualization of 2008 positions filled for only a portion in An additional $1,267,170 was added to services and supplies to support the new facilities coming on line at the Airport. 3. The TSA Pilot program funded in 2007 for $1,600,000 was discontinued and not included in the 2008 Budget. Debt Service $6,815,000 Interest expense is for interest on bonds and excludes capitalized interest. Also included in this amount is funding for the liquidity enhancement fees associated with the Authority s CP Program. Other Operating Expenses $789, An increase of $1,122,015 is included to fund contract escalation costs. Major increases include employee shuttle bus services, custodial services, unarmed guard services, elevator and 77

88 2008 OPERATING EXPENSES 2008 OPERATING EXPENSES FOR CONSOLIDATED FUNCTIONS (dollars in thousands) BOARD OF DIR. AIR SERVICE OPERATING EXPENS ES EXEC. OFFICES LEGAL AUDIT PLNG. & DEV. COMM. FINANCE PERSONNEL EXPENSES Full-time Permanent $1,285.1 $917.7 $609.7 $565.5 $1,161.3 $2,890.6 Other than Full-time Permanent Overtime Other Personnel Compensation 1, , ,018.1 Health Insurance Life Insurance Retirement Other Employee Benefits ,051.2 Total Personnel Expenses 1, , , ,069.3 TRAVEL LEASE AND RENTAL PAYMENTS Airport Lease Payments ,975.0 Other Total Lease and Rental Payments ,975.0 UTILITIES Electricity Natural Gas Water Sewerage Total Utilities TELECOMMUNICATIONS JP MORGAN CHASE BUILDING SERVICES Custodial Services Contractual Services , , , , ,565.5 Total Services , , , , ,565.5 SUPPLIES, MATERIALS AND FUELS Fuels Supplies and Materials Total Supplies, Materials and Fuels INSURANCE AND RISK MANAGEMENT NONCAPITAL EQUIPMENT NONCAPITAL FACILITY PROJECTS CAPITAL EQUIPMENT CAPITAL FACILITY PROJECTS TOTAL OPERATING EXPENSES $2,601.7 $2,575.9 $2,540.4 $4,365.3 $3,348.5 $10,

89 2008 OPERATING EXPENSES 2008 OPERATING EXPENSES FOR CONSOLIDATED FUNCTIONS (dollars in thousands) BUSINESS HUMAN INFO. & PUBLIC OPERATING EXPENSES ENGINEERING ADMIN. RESOURCES TELECOM. SAFETY TOTAL PERSONNEL EXPENSES Full-time Permanent $3,186.8 $3,749.0 $2,325.0 $1,273.4 $9,370.7 $27,334.8 Other than Full-time Permanent ,116.1 Overtime , ,566.8 Other Personnel Compensation 3, , , , , ,584.9 Health Insurance , ,936.7 Life Insurance Retirement , ,073.5 Other Employee Benefits 1, , , , ,164.5 Total Personnel Expenses 4, , , , , ,749.4 TRAVEL LEASE AND RENTAL PAYMENTS Airport Lease Payments ,975.0 Other Total Lease and Rental Payments ,116.2 UTILITIES Electricity Natural Gas Water Sewerage Total Utilities TELECOMMUNICATIONS , ,417.8 JP MORGAN CHASE BUILDING SERVICES Custodial Services Contractual Services , , , ,799.4 Total Services , , , ,799.4 SUPPLIES, MATERIALS AND FUELS Fuels Supplies and Materials , ,136.7 Total Supplies, Materials and Fuels , ,136.7 INSURANCE AND RISK MANAGEMENT 0.0 8, ,999.5 NONCAPITAL EQUIPMENT ,128.0 NONCAPITAL FACILITY PROJECTS CAPITAL EQUIPMENT CAPITAL FACILITY PROJECTS TOTAL OPERATING EXPENSES $4,868.7 $15,852.2 $6,289.0 $18,525.5 $15,652.6 $87,

90 2008 OPERATING EXPENSES 2008 OPERATING EXPENSES FOR RONALD REAGAN WASHINGTON NATIONAL AIRPORT (dollars in thousands) AIRPORT ENGINEERING AIRPORT OPERATING EXPENSES MANAGER OPERATIONS & MAINTENANCE ADMIN. TOTAL PERSONNEL EXPENSES Full-time Permanent $380.0 $1,606.0 $12,615.5 $1,904.8 $16,506.3 Other than Full-time Permanent Overtime Other Personnel Compensation , , , ,790.1 Health Insurance , ,824.8 Life Insurance Retirement , ,932.4 Other Employee Benefits , , ,975.8 Total Personnel Expenses , , , ,765.9 TRAVEL LEASE AND RENTAL PAYMENTS Airport Lease Payments Other Total Lease and Rental Payments UTILITIES Electricity , ,644.3 Natural Gas , ,499.0 Water Sewerage Total Utilities , ,300.4 TELECOMMUNICATIONS JP MORGAN CHASE BUILDING SERVICES Custodial Services , ,001.0 Contractual Services , , , ,586.3 Total Services , , , ,587.3 SUPPLIES, MATERIALS AND FUELS Fuels Supplies and Materials , ,888.8 Total Supplies, Materials and Fuels , ,598.7 INSURANCE AND RISK MANAGEMENT NONCAPITAL EQUIPMENT NONCAPITAL FACILITY PROJECTS CAPITAL EQUIPMENT CAPITAL FACILITY PROJECTS TOTAL OPERATING EXPENSES $1,063.2 $3,834.9 $43,473.8 $5,244.3 $53,

91 2008 OPERATING EXPENSES 2008 OPERATING EXPENSES FOR WASHINGTON DULLES INTERNATIONAL AIRPORT (dollars in thousands) AIRP ORT MOBILE LOUNGE ENGINEERING AIRP ORT OPERATING EXPENSES MANAGER OPERATIONS RAMP CONTROL & MAINTENANCE ADMIN. TOTAL PERSONNEL EXPENSES Full-time Permanent $560.4 $2,554.2 $6,534.8 $16,488.4 $2,017.5 $28,155.3 Other than Full-time Permanent , ,356.7 Overtime , , ,922.2 Other ,131.7 Personnel Compensation , , , , ,565.9 Health Insurance , , ,764.6 Life Insurance Retirement , , ,306.1 Other Employee Benefits , , ,289.8 Total Personnel Expenses , , , , ,855.7 TRAVEL LEASE AND RENTAL PAYMENTS Airport Lease Payments Other , ,727.2 Total Lease and Rental Payments , ,727.2 UTILITIES Electricity , ,792.5 Natural Gas , ,554.6 Water Sewerage Total Utilities , ,705.2 TELECOMMUNICATIONS JP MORGAN CHASE BUILDING SERVICES Custodial Services , ,007.4 Contractual Services , , ,494.4 Total Services , , ,501.8 SUPPLIES, MATERIALS AND FUELS Fuels , ,280.3 Supplies and Materials , ,425.3 Total Supplies, Materials and Fuels , ,705.6 INSURANCE AND RISK MANAGEMENT NONCAPITAL EQUIPMENT NONCAPITAL FACILITY PROJECTS CAPITAL EQUIPMENT CAPITAL FACILITY PROJECTS TOTAL OPERATING EXPENSES $1,321.0 $11,208.3 $12,854.3 $71,776.1 $8,693.5 $105,

92 2008 OPERATING EXPENSES 2008 OPERATING EXPENSES FOR PUBLIC SAFETY (dollars in thousands) CF PSD OPERATING EXPENSES PUBLIC SAFETY NATIONAL DULLES TOTAL PERSONNEL EXPENSES Full-time Permanent $9,370.7 $7,886.4 $10,958.2 $28,215.3 Other than Full-time Permanent Overtime 1, , , ,568.3 Other ,804.4 Personnel Compensation 11, , , ,588.0 Health Insurance 1, , , ,724.7 Life Insurance Retirement 1, , , ,454.0 Other Employee Benefits 3, , , ,376.6 Total Personnel Expenses 14, , , ,964.6 TRAVEL LEASE AND RENTAL PAYMENTS Airport Lease Payments Other Total Lease and Rental Payments UTILITIES Electricity Natural Gas Water Sewerage Total Utilities TELECOMMUNICATIONS JP MORGAN CHASE BUILDING SERVICES Custodial Services Contractual Services Total Services SUPPLIES, MATERIALS AND FUELS Fuels Supplies and Materials ,002.0 Total Supplies, Materials and Fuels ,002.0 INSURANCE AND RISK MANAGEMENT NONCAPITAL EQUIPMENT NONCAPITAL FACILITY PROJECTS CAPITAL EQUIPMENT CAPITAL FACILITY PROJECTS TOTAL OPERATING EXPENSES $15,652.6 $14,828.6 $19,772.5 $50,

93 2008 OPERATING EXPENSES 2008 OPERATING EXPENSES SUMMARY BY ORGANIZATION (dollars in thousands) CONSOLIDATED REAGAN OPERATING EXPENSES FUNCTIONS NATIONAL DULLES TOTAL PERSONNEL EXPENSES Full-time Permanent $27,334.8 $24,392.7 $39,113.5 $90,841.0 Other than Full-time Permanent 1, , ,688.7 Overtime 1, , , ,434.8 Other , ,498.3 Personnel Compensation 30, , , ,462.8 Health Insurance 4, , , ,572.1 Life Insurance Retirement 5, , , ,884.0 Other Employee Benefits 10, , , ,193.3 Total Personnel Expenses 40, , , ,656.1 TRAVEL ,206.8 LEASE AND RENTAL PAYMENTS Airport Lease Payments 4, ,975.0 Other , ,009.3 Total Lease and Rental Payments 5, , ,984.3 UTILITIES Electricity , , ,448.3 Natural Gas 0.0 2, , ,053.6 Water ,211.9 Sewerage ,303.3 Total Utilities , , ,017.1 TELECOMMUNICATIONS 1, ,417.8 JP MORGAN CHASE BUILDING SERVICES Custodial Services 0.0 5, , ,008.4 Contractual Services 26, , , ,326.2 Total Services 26, , , ,334.7 SUPPLIES, MATERIALS AND FUELS Fuels , ,990.2 Supplies and Materials 2, , , ,099.2 Total Supplies, Materials and Fuels 2, , , ,089.4 INSURANCE AND RISK MANAGEMENT 8, ,999.5 NONCAPITAL EQUIPMENT 1, ,735.3 NONCAPITAL FACILITY PROJECTS CAPITAL EQUIPMENT CAPITAL FACILITY PROJECTS TOTAL OPERATING EXPENSES $87,318.5 $68,444.9 $125,625.7 $281,

94 NEW AVIATION ENTERPRISE POSITIONS and DESCRIPTIONS Office Level MA # Position Dulles Airport S-18/19 MA Auto Vehicle Identification (AVI) Tech S-16 MA Lost and Found Technician T-19 MA Exterior Electrician - Shift Operator T-21 MA Planner/Scheduler, Passenger Loading Bridges T-18 MA Heavy Equipment Operator T-19 MA Central Plant Mechanic T-19 MA Plumber/Pipefitter (Day) T-19 MA HVAC Mechanic S-18/19 MA Facilities Maintenance Contracts Coordinator 18 Public Safety P-10 DCA 8 Police Officer P-10 IAD 12 Police Officer F-13 IAD 3 Captain - Fire Operations (Shift) F-10 IAD 3 Firefighters F-12 DCA 3 Firefight Medics 29 Total Aviation Enterprise 47 84

95 NEW AVIATION ENTERPRISE POSITIONS and DESCRIPTIONS WASHINGTON DULLES INTERNATIONAL AIRPORT Auto Vehicle Identification (AVI) Technician, S-18/19: This position will manage new division responsibilities associated with implementation of the Automatic Vehicle Identification (AVI) system for ground transportation at Washington Dulles, including the distribution of AVI tags to commercial vehicle operators, reporting ground transportation activity, and monitoring operational expenses reported under the management contract to dispatch taxicabs and manage the Commercial Vehicle Curb (CVC) at Washington Dulles. The AVI Technician will conduct financial and operational reviews of commercial vehicle activities. Lost and Found Technician, S-16: The Lost and Found (L&F) office has relocated to the Main Terminal and extended the service hours to include Saturdays. The new location allows for better customer service supporting the increased number of walk-in customers. Exterior Electricans Shift Operator (5), T-19: These five positions will support the airfield lighting system and electrical distribution system for the fourth runway complex and the AeroTrain Maintenance Facility and Air Traffic Control Tower (ATCT). The exterior electrician shift operators will also provide a second electrician on each shift to meet OSHA safety requirements when working with high voltage systems. Planner/Scheduler, Passenger Loading Bridges, T-21: This position reflects the requirement to dedicate a planning and scheduling function to the maintenance of the passenger loading bridges as the number will increase significantly with the Concourse B expansion. Heavy Equipment Operators (4), T-18: These four operator positions will be responsible for maintaining the fourth runway complex, including mowing, sweeping, and pavement repair. These positions are also needed for the increased amount of highlygroomed landscape maintenance inside the AOA at the ATCT and the AeroTrain Maintenance Facility. Central Plant Mechanic, T-19: This mechanic is an HVAC Mechanic who will be assigned to the Utility Building to maintain all Utility Building facilities. This position will support the newly upgraded chilled water & heating systems in the East & West Utility Buildings that support the Main Terminal, Concourse B and Tunnels and also support the design and construction activities of the new South Utility Building. Plummer/Pipefitters (Day), (2), T-19: These two positions support maintenance of the South Utilities Distribution system. These positions will also support maintenance fo the new Stallion Branch sewer line and associated sewage lift stations. HVAC Mechancis (2), T-19: These two positions will support new heating and air handling systems and related HVAC systems in the new Air Traffic Control Tower (ATCT), the new AeroTrain Maintenance Facility, Concourse B expansion, the new Tier 2 APM Station, the security checkpoints, security mezzanines, and train station at the terminal. Facilities Maintenance Contract Coordinator, S-18/19: The coordinator will develop, manage and perform quality assurance of new and existing contracts on the evening shifts. This position will support the fourth runway, Concourse B expansion, and the APM stations. PUBLIC SAFETY Police Officers (8), P-10: These eight positions will support the Law Enforcement Officer (LEO) screening at the checkpoints at Reagan National and increased police presence in public areas of the Terminal. Police Officers (12), P-10: These twelve positions will support the increased calls for service, alarm responses, and scope of patrol areas for facilities such as the Smithsonian, parking garages, parking lots, tunnels, and Concourse B at Washington Dulles. 85

96 NEW AVIATION ENTERPRISE POSITIONS and DESCRIPTIONS Captain - Fire Operations (6), F-13: These six supervisor positions will staff the new fire station 304 at Washington Dulles. Firefighters (3), F-10: These three positions will support the new fire station 304 at Washington Dulles. These firefighters will perform full performance level firefighter functions in fire prevention, suppression, rescue and emergency medical services a the basic life support level in airport, public roadway, and office and community settings. Duties will also include responding to all types of emergency situations and, under the direction of the Incident Commander, carry out assigned duties to mitigate the emergency. 86

97 AIRPORTS AUTHORITY POSITION SUMMARY TOTAL TOTAL 2008 TOTAL ORG CODE POSITIONS POSITIONS POSITIONS POSITIONS AVIATION ENTERPRISE CONSOLIDATED FUNCTIONS Board of Directors MA-BD President and Chief Executive Officer MA Executive Vice President and Chief Operating Officer MA Office of Communications MA Office of Air Service Planning and Development MA Legal Office MA Office of Audit MA Office of Finance MA Deputy Chief Financial Officer MA Accounting Department MA Treasury Department MA Budget Department MA Financial Strategy and Analysis Department MA Office of Engineering MA Planning Department MA Design Department MA Construction Department MA Building Code and Environmental Department MA Office for Human Resources MA Staffing and Records Services MA Benefits Department MA Organizational Development and Training Department MA Compensation MA Labor and Employee Relations Department MA Office of Business Administration MA Equal Opportunity Programs Department MA Administrative Support Department MA Concession and Property Development Department MA Procurement and Contracts Department MA Risk Management Department MA Office of Information Technology & Telecommunications MA IT Operations and Services MA Telecommunications Department MA Wireless Services and Radio Systems Department MA IT Systems and Program Development MA Total Consolidated Functions REAGAN NATIONAL AIRPORT Airport Manager MA Operations Department MA Engineering and Maintenance Department MA Engineering Division MA Structures and Grounds Division MA Electrical Division MA Utilities Division MA Equipment Maintenance Division MA Maintenance Engineering Division MA Terminal Service Center Division MA Resource Support Division MA Airport Administration Department MA Budget and Administration Division MA Contract Management Division MA Materials Management Division MA Leasing and Terminal Division MA Total Reagan National Airport

98 AIRPORTS AUTHORITY POSITION SUMMARY ORG TOTAL TOTAL 2008 TOTAL CODE POSITIONS POSITIONS POSITIONS POSITIONS DULLES AIRPORT Airport Manager MA Operations Department MA Ramp Control Division MA Mobile Lounge Division MA Engineering and Maintenance Department MA Structures and Grounds Division MA Utilities Services Division MA Engineering Division MA Equipment Maintenance Division MA Maintenance Engineering Division MA Airport Administration Department MA Financial Management Division MA Contract Management Division MA Materials Management Division MA Total Dulles Airport PUBLIC SAFETY Headquarters, Consolidated Functions MA Police Department, Headquarters MA Police Department, Communications MA-310C Fire Department, Headquarters MA Public Safety Administration Department MA Reagan National Police Department MA Fire Department MA Dulles Police Department MA Fire Department MA Total Public Safety Total Aviation Enterprise 1,330 1, ,406 DULLES CORRIDOR ENTERPRISE Dulles Rail Project Dulles Toll Road 8 8 Total Dulles Corridor Enterprise Total Metropolitan Washington Airports Authority 1, ,427 88

99 EFFECTIVE BUYING INCOME The demand for air travel increases with income, as consumers with higher incomes tend to travel by air more frequently. The level of income in a particular area indicates the relative affluence of local residents. Changes in the level of income over time indicate changes in economic well-being and reflect local economic and employment trends. Income can be measured in terms of EBI, which is the disposable income after taxes and mandatory non-tax payments, such as personal contributions to Social Security and federal retirement payroll deductions. Between 1998 and 2006, the share of the Air Trade Area of the Washington D.C.-Maryland-Virginia Area s total EBI was relatively stable, ranging from a low of 45.5 percent in 2002 to a high of 47.3 percent in In addition, the share of the U.S. total EBI of the Air Trade Area remained stable ranging from approximately 2.3 percent to 2.5 percent during this same period. The share of the Air Trade Area of the Washington D.C.-Maryland-Virginia Area total EBI, as well as the nation s EBI, is projected to increase in 2007 to 47.1 percent and 2.6 percent, respectively. Per Capita Effective EBI Air Trade Area's Share Year Air Trade Area Wash D.C.-Maryland- Wash D.C.-Maryland- United States Virginia Area Virginia Area United States Historical 1997 $22,220 $17,811 $16, % 2.27% 1998 $23,193 $18,553 $16, % 2.30% 1999 $24,228 $19,469 $17, % 2.32% 2000 $25,144 $20,197 $18, % 2.33% 2001 $26,042 $20,553 $18, % 2.43% 2002 $24,785 $20,472 $18, % 2.34% 2003 $25,595 $21,012 $18, % 2.43% 2004 $26,359 $21,725 $19, % 2.43% $34,912 $28,413 $24, % 2.54% $35,537 $29,179 $24, % 2.53% Projected 2011 $39,508 $32,796 $27, % 2.61% Annual Compounded Growth % 2.3% 1.9% % 2.7% 1.8% % 2.4% 2.1% % of Households (Estimated 2006 EBI) Wash D.C.-Maryland- Income Category Air Trade Area Virginia Area United States Less than $15, % 10.5% 13.3% $15,000 - $34, % 18.4% 22.3% $35,000 - $49, % 34.5% 35.2% $50,000 or more 49.1% 36.7% 29.2% Total 100.0% 100.0% 100.0% 1 Beginning in 2006, Sales and Marketing Management no longer publishes the Survey of Buying Power. As a result, Claritas, Inc., a nationally recognized provider of demographic data, became the source for the EBI data beginning in Historical data is not available from Claritas, Inc. prior to 2005; therefore, Sales and Marketing Management remains the source for the data from 1997 to As a result, the EBI data presented for 2005 and later may not be comparable to previous year's data. 2 The data presented for 2006 are estimates. Sources: Sales & Marketing Management, Survey of Buying Power (1997 through 2004); Claritas, Inc. (2005, 2006, and 2011); Compiled by PB Aviation and ARP Consulting 89

100 AIRPORT SNAPSHOTS Ronald Reagan Washington National Airport Airline Service as of September 2007 Washington Dulles International Airport Airline Service as of September 2007 Major/National Airlines (14) AirTran Airways Alaska Airlines ATA Airlines American Airlines Continental Airlines Delta Air Lines Delta Shuttle Frontier Airline Midwest Airlines Northwest Airlines Spirit Airlines United Airlines US Airways* US Airways Shuttle Transborder Service Air Canada *U.S. carrier offering international services Regional/Commuter Airlines (14) Air Wisconsin Atlantic Southeast American Eagle Chautauqua Colgan Air Comair Continental Express Mesaba Aviation PSA Piedmont Airlines Pinnacle Republic Airlines Shuttle America Trans States Fixed Base Operators Signature Flight Support Services Date Opened: June 16, 1941 Distance from Downtown DC: 3 miles/15 minutes Size: 860 acres Location: Arlington County, Virginia Public Parking Spaces: 8,326 Aircraft Gates/Parking Positions-44 Length of Runways: 1/19-6,869 ft. 15/33-5,204 ft. 4/22-4,911 ft. Non-stop destinations: 76 US Cities Hamilton, Bermuda, Nassau, Bahamas, and Montreal and Toronto, Canada Major/National Airlines (11) AirTran Airways American Airlines Continental Airlines Delta Air Lines JetBlue Airways MN Airlines Northwest Airlines Southwest Airlines United Airlines* US Airways Virgin America Transborder Service Air Canada Cargo Airlines ABX Air FedEx United Parcel Service Fixed Base Operators Piedmont Hawthorne Aviation -Washington Dulles Signature Flight Support Services * U.S. carriers offering international services ** Includes Transborder services Foreign Flag Carriers (19) Aer Lingus Aeroflot Russian Airlines Air France All Nippon Airways Austrian Airlines British Airways COPA Ethiopian Airlines Iberia KLM-Royal Dutch Airlines Korean Air Lufthansa German Airlines Maxjet Qutar Amiri Air Saudi Arabian Airlines Scandinavian Airlines System South African Airways TACA International Airlines Virgin Atlantic Airways Regional/Commuter Airlines (14) American Eagle Atlantic Southeast Chautauqua** Colgan Air Comair Commutair Continental Express Freedom Go-Jet Mesa PSA Shuttle America** Sky West Trans States Date Opened: November 19, 1962 Distance from Downtown DC: 26 miles/30 minutes Size: Approximately 11,830 acres Location: Fairfax & Loudoun Counties, Virginia Public Parking Spaces: 26,073 Aircraft Gates/Parking Positions: 134 Length of Runways: 1R/19L (North-South) - 11,500 ft. 1L/19R (North-South) - 11,500 ft. 12/30 (Crosswind) - 10,500 ft. Non-stop destinations: 80 US Cities/Nationwide 37 Foreign Cities 90

101 AIRLINES SERVING THE AIRPORTS Carrier Shares of Total Enplaned Passengers at Reagan National and Washington Dulles (for the 12 months ended December 31, 2006) United 38.3% US Airways 19.7% American 9.6% Delta 8.4% Foreign-Flags 7.1% All Other U.S. Carriers 12.2% Northwest 4.6% 1 Carrier shares include codesharing affiliates, if any. Source: The Authority CARRIER SHARES OF TOTAL ENPLANED PASSENGERS AT DULLES 1 (for the 12 months ended December 31, 2006) United 64.8% JetBlue 5.9% Foreign-flag Carriers 12.0% All Other U.S. Carriers 8.6% American 4.8% Delta 4.0% 1 Carriers include codesharing affiliates, if any. Source: The Authority CARRIER SHARES OF TOTAL ENPLANED PASSENGERS AT NATIONAL 1 (for the 12 months ended December 31, 2006) US Airways 41.2% American 15.5% Delta 13.8% Northwest 8.0% All Other 10.8% Continental 5.1% United 5.5% 1 Carriers include codesharing affiliates, if any. Source: The Authority 91

102 POPULATION The following table presents the historical and projected population in the Air Trade Area, the Washington D.C.-Maryland-Virginia Area, and the U.S. In 2006, the population of the Air Trade Area was approximately 5.3 million, or 38 percent of the total population of the Washington D.C.-Maryland- Virginia Area. Between 2000 and 2006, the population of jurisdictions in the Air Trade Area expanded at rates ranging from 0.3 percent to 8.0 percent per year. The highest annual population growth rates occurred in Loudoun County (8.0 percent), and Stafford County (4.5 percent), followed by the combined jurisdictions of Spotsylvania County and Fredericksburg City (4.3 percent), indicating an increase in the population base immediately surrounding Washington Dulles and south of the Airports to support growth in aviation activity and air service. Annual Compounded Growth Historical Projected Historical Projected Area District of Columbia 1 606, , , , % -0.3% -0.7% State of Maryland Calvert County 51,372 74,563 87, , % 3.6% 2.9% Charles County 101, , , , % 2.1% 2.2% Frederick County 150, , , , % 2.6% 2.0% Montgomery County 757, , , , % 1.4% 1.2% Prince George's County 729, , , , % 1.0% 0.5% Commonwealth of Virginia Arlington County & Alexandria City 282, , , , % 1.1% 1.4% Clarke County 12,101 12,652 14,205 15, % 1.1% 1.4% Fairfax County, Fairfax City & Falls Church City 847,784 1,001,624 1,039,273 1,117, % 1.4% 1.5% Fauquier County 48,741 55,139 64,997 71, % 1.9% 2.1% Loudoun County 86, , , , % 7.5% 4.6% Prince William County, Manassas & Manassas Park City 250, , , , % 3.1% 2.8% Spotsylvania County & Fredericksburg City 76, , , , % 4.0% 3.3% Stafford County 61,236 92, , , % 4.5% 3.3% Warren County 26,142 31,584 35,556 39, % 2.1% 2.1% State of West Virginia Jefferson County 35,926 42,190 49,206 54, % 2.1% 2.0% AIR TRADE AREA 4,122,914 4,796,183 5,246,194 5,641, % 1.6% 1.5% Wash D.C.-Maryland-Virginia Area 11,575,726 12,947,060 13,718,374 14,479, % 1.1% 1.1% United States 248,710, ,421, ,410, ,595, % 1.2% 0.9% 1 NPA Data Services did not use the revised 2005 population estimate for the District of Columbia as a base for developing its population projections. As a result, the 2010 projected population for the District of Columbia was developed by applying the NPA Data Services' projected population growth rates to the revised 2005 population for the District of Columbia. Sources: U.S. Department of Commerce, Bureau of the Census (all areas: 1990, 2000, 2005), NPA Data Services (all areas except D.C.: 2010), PB Aviation (D.C.: 2010); Compiled by PB Aviation and ARP Consulting Loudoun County 4.9% Other Virginia Jurisdictions 7% Other Maryland Counties 9% West Virginia County 1% Fairfax County, Fairfax City & Falls Church 19% Arlington County & Alexandria 6.3% Prince William County, Manassas & Manassas Park 8% District of Columbia 11.1% Prince George's County 16% Montgomery County 17.7% Source: U.S. Bureau of the Census, Compiled by PB Aviation and ARP Consulting 92

103 AIRPORT ACTIVITY FORECASTS RONALD REAGAN WASHINGTON NATIONAL AIRPORT Reagan National was opened for service in It is located on approximately 860 acres along the Potomac River in Arlington County, Virginia, approximately three miles from Washington, D.C. It has three interconnected terminals, three runways and 44 air carrier gates. As of the end of September 2007, Reagan National was served by 28 airlines. US Airways is the largest carrier in terms of numbers of flights and enplanements. The major/national airlines typically operate large jet aircraft in the higher density and/or longer-haul markets, and the regional/commuter airlines operate smaller aircraft in the shorter-haul markets. At Reagan National, scheduled service is provided by six of the nation s seven major airlines which represent the largest group of airlines in terms of total revenues. These airlines are American, Continental, Delta, Northwest, United, and US Airways. Southwest is the only major airline not currently providing service at Reagan National. As of the end of August 2007, daily nonstop service was provided from Reagan National to 76 destinations including 72 cities nationwide as well as international destinations such as Hamilton, Bermuda, Nassau, Bahamas and Montreal and Toronto, Canada. Approximately 83 percent of total passengers at Reagan National are from origin and destination (O&D) flights. From time to time, the USDOT, pursuant to legislation, has made available a limited number of additional slots (each of which can be used for either a flight arrival or departure) at Reagan National. In July 2000, the USDOT awarded 24 new slots, of these 12 could operate nonstop flights between the Airport and points beyond the 1,250 mile perimeter. In April 2004, the USDOT awarded 22 additional slots, of these 12 could operate nonstop flights to airports beyond the 1,250 mile perimeter. Signatory enplanements at Reagan National increased in 2006 by 3.7 percent over Signatory enplanements are expected to increase 2.8 percent in 2007 and then increase by 0.7 percent in This growth reflects air carriers gradually increasing aircraft size allowing them to add capacity. Signatory enplanements are spread over a large air carrier base, with 12 carriers (Air Tran, Alaska, American, ATA, Continental, Delta, Frontier, Midwest, Northwest, Spirit, United, and US Airways (including America West), including Delta and US Airways Shuttle). General aviation activity had been excluded at Reagan National since September 11, 2001, but as of October 2006, general aviation activity is permitted with strict security requirements. Reagan National serves primarily short-and mediumhaul markets, as a result of U.S. Department of Transportation (USDOT) regulations. Reagan National is controlled by the High Density Rule and one of two airports controlled by the Perimeter Rule, which generally limits non-stop flights at Reagan National to a radius of 1,250 statue miles. The High Density Rule imposes limits on the number of flights scheduled at Reagan National through the assignment of hourly operating slots. All slots are assigned by the FAA. Air carriers are required to use each slot a significant percent of the time or the slots may be withdrawn by the FAA. However, airlines are permitted to buy, sell, or lease these operating slots. 93

104 AIRPORT ACTIVITY FORECASTS WASHINGTON DULLES INTERNATIONAL AIRPORT Washington Dulles was opened for service in It is located on approximately 11,830 acres (exclusive of the Dulles Access Highway) in Fairfax and Loudoun Counties, Virginia, approximately 26 miles west of Washington, D.C. In addition to a main terminal, it has four midfield concourses (A, B, C, and D), three runways and approximately 134 aircraft gates. As of the end of September 2007, Washington Dulles was served by 47 airlines, including 11 major/national airlines, 14 regional/commuter airlines, 19 foreign flag carriers and three all-cargo carriers. Washington Dulles serves long, medium and short-haul markets. United maintains a major domestic hub and international gateway operation at Washington Dulles. Scheduled service is provided by all of the nation s seven major airlines. These airlines are American, Delta, Continental, Northwest, Southwest, United, and US Airways. As of the end of August 2007, daily nonstop service was provided from Washington Dulles to 80 cities nationwide and to 37 international nonstop destinations. traffic comprising the remainder. Domestic signatory enplanements decreased in 2006 by 19.6 percent over 2005 and are expected to increase by 9.2 percent in 2007 and increase by 6.0 percent in International signatory enplanements increased by 6.0 percent in 2006 and are expected to increase 14.5 percent in 2007 and increase by 8.7 percent in United and Lufthansa are the largest international air carriers with 43.3 percent and 8.4 percent, respectively, of total Washington Dulles international passengers during Washington Dulles experienced an uninterrupted increase in air cargo tonnage handled from 1996 to Tonnage then dropped by approximately 25% over the subsequent three years, in part reflecting swings in the U.S. and global economies. Between 2003 and 2006, air cargo tonnage handled at Washington Dulles increased 23.3 percent. Washington Dulles is not constrained by perimeter restrictions as Reagan National is, with numerous long-haul markets being served with nonstop flights. Most of the international carriers and all of the allcargo carriers flights operate at Washington Dulles. Total signatory enplanements decreased in 2006 by 15.0 percent over The decrease was due primarily to the cessation of service provided by Independence Air. Signatory enplanements are expected to increase 10.3 percent in 2007 and increase by 6.6 percent in United and its affiliates accounted for 64.8 percent of signatory enplanements at Washington Dulles in Largely because of United, total connecting traffic (domestic and international) at Washington Dulles was approximately 36.0 percent of signatory enplanements for 2006, with the remaining 64.0 percent of signatory enplanements representing O&D traffic. In 2006, Domestic signatory enplanements made up 77.0 percent of the Airport total, with international 94

105 HISTORY OF REAGAN NATIONAL S AND WASHINGTON DULLES S ENPLANED PASSENGERS HISTORY OF NATIONAL S ENPLANED PASSENGERS From the early 1980s until 2000 annual enplanement levels at Reagan National were virtually flat, seldom fluctuating more than 5 percent above or below 7.5 million passengers. Below is a graphic depiction of enplanements at Reagan National from 1978 through 2006, illustrating the departure from the consistent pattern that has occurred since Passengers (in millions) Airline Deregulation Economic (1978) Economic Recession Recessi on (1981- ( ) 1984) Airport trans fer red to Authority (1987) Persian Gulf War Economic Recession ( ) Transfer of PanAm Shuttle to Delta (1991) Transfer of Trump Shuttle to USAi r (1992) Terminals B/C open (1997) Airport resumes full oper ati ons, US Air way s & United file Chapter 11 (2002) Econ. Recession, Terrorist Attacks, Airport closed for 23 days (2001) US Airways re-files Chap. 11 (2004) Ir aq W ar, SARS outbreak, US Airways emerges from Chap. 11 (2003) United emerges from Chap. 11 (2006) Delta & Northwest file Chap. 11, US Airways re-emerges from Chap. 11 and merges with America West (2005) Year 1 Includ es both do mestic and in tern ation al, and revenue and n on-reven ue passengers. Exclud es en planements on general av iatio n and military fligh ts. Sources: Th e Autho rity; Jaco bs Con sultan cy. 95

106 HISTORY OF REAGAN NATIONAL S AND WASHINGTON DULLES S ENPLANED PASSENGERS HISTORY OF WASHINGTON DULLES ENPLANED PASSENGERS The rate of passenger growth at Washington Dulles has varied over the past 30 years. The rapid growth experienced from 1985 to 1987 was due to the short-lived service of Continental Airlines hub followed by the build-up by United of its domestic hubbing operations. The traffic surge in 1998 and 1999 was created partly by expansion of service by United and Atlantic Coast and partly by US Airways aggressive introduction of its MetroJet service, the competitive response by the others carriers, and the stimulation of traffic that followed. The dip in traffic in 2001 and 2002, while not as pronounced as the decline at Reagan National, was due in part to the retreat of US Airways from the Washington Dulles market, as well as the effect of the terrorists attacks on September 11, 2001, and the recession. After establishing a hub at Washington Dulles in June 2004, Independence Air added a considerable amount of domestic low-fare capacity, and the subsequent stimulation of traffic pushed enplanement volumes to a record level in Even though traffic fell back in 2006 to roughly the 2004 level, it is notable that this level was maintained in 2006 without the stimulative effect of Independence Air. Passengers (in millions) Airline Deregulation (1978) United build- up of domestic hub ( ) Concourses C and D open ( ) Economic ic Recession ( ) n ( Airport transferred to Authority (1987) Uni ted establ ished international hub Concourses A (1990) & B open Continental ( ) hub build-up Presidential Airlines ( ) ceases operation (1991) Persian Gulf War, Economic Recession ( ) E conomic Recession, Terroris t Attacks, JetBlue begins service, National closed for 23 Days (2001) US Airways' MetroJet Service ( ) US Airways & United file Chapter 11 (2002) Independence Air begins service, US Airways re-files Chap. 11 (2004) Delta, Northwest & Independence Air file Chap. 11, US Airways re-emerges from Chap. 11 (2005) Iraq War, SARS outbreak, US Airways emerges from Chap. 11 (2003) Independence Air ceases operations, United emerges from Chap. 11, Southwest begins service (2006) Year 1 Includes both domestic and international, and revenue and non-revenue passengers. Excludes enplanements on general aviation and military flights. Sources: The Authority; Jacobs Consultancy. 96

107 AIRPORT ACTIVITY FORECASTS ENPLANEMENTS Reagan National is primarily an O&D passenger airport with approximately 17.0 percent of the passengers transferring to other flights. Reagan National had experienced flat passenger traffic, then enplanements dropped in 2001 and 2002 primarily due to the events of September 11, 2001, and restrictions at the Airport that were not lifted until April The enplanement increases in 2003 through 2006 result from a combination of the rebounding from the events of September 11, 2001, the recovery of the overall economy, change in aircraft size and additional slots awarded in Although capacity growth is negligible in 2006, enplanements at Reagan National reached a record leel largely due to higher load factors. Signatory enplanement levels at Reagan National increased 3.7 percent in Signatory enplanement levels are expected to increase by 2.8 percent during 2007 and increase by 0.7 percent in Millions Reagan National Enplanements nearly 73 percent of all domestic jet flights, primarily due to the advent of Independence Air and United s competitive response. In response to the mid-2004 introduction of competitive service by Independence Air, United significantly expanded its capacity at Washington Dulles. Adding still more capacity in 2006, United offered more seats at Washington Dulles than in any previous year, with the exception of its record level in International growth is based on relatively large international air carrier bases, diversity of international market services and the international presence in the region. In 2007, enplanements are expected to continue a pattern of solid growth, driven by the expected effects of the Southwest service and associated competitive responses, combined with a large and reliable regional base of demand for air travel. Signatory enplanement levels at Washington Dulles decreased by 15.0 percent in 2006 with the cessation of service provided by Independence Air and are estimated to increase by 10.3 percent in 2007 and increase by 6.6 percent in An increase in domestic enplanements is estimated at 9.2 percent in 2007 followed by an increase of 6.0 percent in International enplanements are anticipated to increase by 14.5 percent in 2007 and then increase by 8.7 percent in Washington Dulles Enplanements National The rate of passenger traffic growth at Washington Dulles has varied over the past 30 years. Between August 2001 and August 2005, there was a significant net increase in service at Washington Dulles. Initiation of service by Independence Air in the summer of 2004 more than offset contractions by the airline industry related to the weak economy, the decline in high-yield traffic, terrorism fears, and the industry s weak financial situation, that occurred in the intervening years. By August 2005 short-haul flights had increased eight-fold in number and represented 97 Millions Domestic International Total enplanements for Washington Dulles are as follows: 2006 (11,510,200), 2007 (12,697,200) and 2008 (13,537,000).

108 AIRPORT ACTIVITY FORECASTS LANDED WEIGHTS Given the consistent level of operations between 1996 and 2000, annual aircraft landed weight and average landed weight per flight reflected little variability. Both measures declined in 2001 and 2002, reflecting the reduced post-september 11, 2001 level of operations and increased use of regional jets. In 2005, however, total landed weight at Reagan National exceeded the 2000 level (reaching 12.8 billion pounds), and average landed weight per flight increased significantly from the level experienced over the previous two years, reflecting the use of larger regional jets and a virtual phase-out of turboprop operations. Landed weight levels at Reagan National are expected to increase by 2.7 percent in 2007 and 0.9 percent in Reagan National Landed Weights The forecast of total landed weight follows generally the same pattern as the enplanement forecast. An estimated 10.0 percent increase in landed weight is expected at Washington Dulles in 2007, following the capacity shakeout that occurred in Millions Washington Dulles Landed Weights Pounds Landed weight levels at Washington Dulles are expected to increase by 10.0 percent in 2007 and increase by 3.2 percent in Millions Pounds

109 AIRPORT ACTIVITY FORECASTS AIRCRAFT OPERATIONS The number of passenger flight operations at Reagan National was virtually flat, fluctuating within the 237,000 to 249,000 range in the years 1996 through Departing seats ranged between 12.5 and 13.5 million, load factors fluctuated in the range of 56 to 62 percent, and aircraft seating capacity averaged about 107 seats per flight. In the aftermath of the dip in the economy in 2001, the events of September 11, 2001, the decline in high-yield air travel, and the financial crisis in the airline industry, however, air carriers serving Reagan National replaced many of their narrow-body jet flights with regional jets. The average enplaned passenger load factor at Reagan National continued to rise sharply, from 64 percent in 2003 to 70 percent in 2006, as a result of traffic demand increasing faster than capacity. Aircraft size also increased, from the turboprop capacity with 50-seat and, increasingly, 70-seat regional jets and some airlines increased the size of some of the mainline jet aircraft operated at Reagan National. Airlines serving Reagan National are expected to increase aircraft size gradually, allowing them to add capacity at a faster rate than flights and to reduce their unit costs. Together, these factors are expected to increase the total number of departing seats offered at Reagan National at a slower rate than enplanements. Reagan National Aircraft Operations Washington Dulles experienced steady growth in the 1990s, ending the decade with a significant surge in passenger traffic. Operations were reduced in 2001 in the face of a declining economy, the events of September 11, 2001, and the exit of MetroJet. Washington Dulles accommodated the air traffic displaced from Reagan National in the fall of 2001, but the restoration of normal operations at Reagan National in 2002 was one of the factors that led to a further decline in 2002 traffic at Washington Dulles. Passenger flight operations have increased in 2003, 2004 and 2005 as new service was added at Washington Dulles, in particular the operations from Independence Air. In 2006, the absence of Independence Air is the primary factor underlying a sizeable reduction in passenger flight operations at Washington Dulles. The majority of the decline will be accounted for by a substantial drop in flights operated by regional jets rather than by mainline jet aircraft. In 2006, aircraft seating capacity increased to 97 seats per flight. The restrained capacity growth by many of the airlines over the past year has driven up passenger load factors, and these higher load factors are expected to be a characteristic of operations at Washington Dulles in the future. Overall, commercial flight operations peaked in 2005 at 438,400 operations and declined to 379,571 in In 2007 and 2008, flight activity is forecast to return to positive growth. Washington Dulles Aircraft Operations Millions Millions General Regional Major/National Aircraft operations at Reagan National are projected to increase slightly in 2007 and grow to 275,700 flight operations in General Regional Major/National Aircraft operations at Washington Dulles are expected to increase by approximately 6.1 percent in 2007 and increase by 5.5 percent in 2008.

110 AIRPORT ACTIVITY FORECASTS CARGO Cargo facilities are relatively limited at Reagan National, and because Reagan National is land constrained, all cargo aircraft operations must use Washington Dulles or other airports. The shift to regional jets has reduced available belly capacity for air cargo. The events of September 11, 2001, as well as the banning of mail over 16 ounces from passenger flights and the Anthrax situation, have dramatically affected the mail at Reagan National. Cargo, which includes freight and mail, is expected to decrease by 2.4 percent in 2007 and by 3.0 percent in making up the remainder, increased 37 percent. Cargo tonnage handled by the all-cargo airlines, mostly the three large integrated carriers (FedEx, UPS, and ABX), declined 15 percent over the period. The strength and stability of the Washington-area market will support growth in cargo demand, and the attractiveness of the Air Trade Area for wide-body international flights will continue to generate belly capacity for cargo. Cargo at Washington Dulles is projected to increase by 5.4 percent in 2006 and then increase by 3.0 percent in Reagan National Cargo 8.0 Washington Dulles Cargo Tonnage Tonnage Freight Mail Freight Mail Washington Dulles experienced an uninterrupted increase in air cargo tonnage handled from 1996 to Tonnage then dropped by approximately onequarter over the subsequent three years, a period that experienced swings in the U.S. and global economies. Between 2003 and 2006, air cargo tonnage handled at Washington Dulles increased 23.3 percent. Two significant shifts by United affected cargo tonnage trends at Washington Dulles between 2000 and 2006: a drop of more than half of its domestic cargo tonnage between 2000 and 2004, and a more than 70 percent increase in its international cargo tonnage between 2005 and Over the six-year period, domestic cargo tonnage overall declined 36 percent, from 63 percent to 44 percent of total cargo handled at the Airport. International cargo tonnage, 100

111 ACTIVITY INDICATORS ACTUAL BUDGET BUDGET NATIONAL AIRPORT AIRPORT BUILDINGS (Square Feet) Terminals 1,436,384 1,436,384 1,436,384 Hangars 753, , ,236 Other 222, , ,003 UTILITIES Electricity (Kilowatts) 82,500 95,000 95,000 Natural Gas (Therms) 1,900,000 1,900,000 1,900,000 Water (Gallons) 134,000, ,000, ,000,000 Sewage (Gallons) 95,000,000 95,000,000 95,000,000 Fuel Oil for Heating (Gallons) 25,000 25,000 25,000 AIRFIELD (Square Feet) Runways 2,484,450 2,484,450 2,484,450 Taxiways 1,622,000 1,622,000 1,622,000 Ramps/Aprons 5,074,800 5,074,800 5,074,800 ROADWAYS (Lane Mileage) PARKING Public Surfaced Spaces 2,338 2,954 3,116 Public Structured Spaces 5,232 5,228 5,228 Employee Surfaced Spaces 3,100 2,950 3,000 VEHICLES IN FLEET PUBLIC SAFETY, NATIONAL POLICE Calls for Service: 124, , ,000 Assistance to Other Agencies 890 2,000 2,000 Traffic Violations 1,593 3,000 3,000 Parking Violations 7,151 9,000 9,000 FIRE Calls for Service: Aircraft & Fuel Spills Structural Responses Emergency Medical 1,572 1,600 1,700 Fire Prevention Inspections

112 ACTIVITY INDICATORS ACTUAL BUDGET BUDGET DULLES AIRPORT OPERATIONS Mobile Lounge Trips, (Shuttle Operations) 646, , ,000 Plane-Mate Trips 30,526 36,000 40,000 AIRPORT BUILDINGS (Square Feet) Terminal/Concourse 2,494,842 2,586,850 2,832,485 Other 902,430 1,001,357 1,228,210 UTILITIES Electricity (Kilowatts) 203,570, ,953, ,032,301 Natural Gas (Millions of Cubic Feet) 378, , ,425 Water (Gallons) 341,551, ,546, ,796,103 Sewage (Gallons) 302,737, ,802, ,390,106 Fuel Oil for Heating (Gallons) 8,913 4,500 9,000 AIRFIELD (Square Feet) Runways 5,025,000 5,500,000 6,435,000 Taxiways 11,830,485 11,860,785 12,877,386 Ramps/Aprons 11,916,961 11,894,254 12,595,834 Shoulders & Blast Pads 8,290,194 9,381,194 11,033,394 ROADWAYS (Lane Mileage) PARKING Public Surfaced Spaces 15,471 15,471 14,913 Public Structured Spaces 8,325 8,325 8,325 Employee Surfaced Spaces 6,168 6,168 6,168 VEHICLES IN FLEET PUBLIC SAFETY, DULLES POLICE Calls for Service: 72,218 80,000 82,000 Assistance to Other Agencies 563 1,000 1,000 Traffic Violations 8,850 13,000 13,000 Parking Violations 5,470 8,000 8,000 FIRE Calls for Service: Aircraft & Fuel Spills Structural Responses 956 1,300 1,300 Emergency Medical 2,335 2,700 3,000 Fire Prevention Inspections

113 BUDGET BY COST CENTERS Cost Centers are those areas or functions of activities established by the Authority at each Airport where revenues or expenses are attributed. The cost centers are governed by the Agreement. Cost Centers are either direct or indirect. Direct cost centers are used to accumulate all elements comprising the total requirement allocable or attributable to the area under the Authority s accounting system. Direct cost centers are airfield, terminal, aviation, ground transportation, non-aviation, equipment, international arrivals buildings, airside operations building, cargo, aviation, and passenger conveyance system. Indirect cost centers are those functional areas and related facilities other than direct cost centers where costs are accumulated net of direct reimbursement, allowable or attributable to the area under the Authority s accounting system and which are subsequently allocated to the direct cost centers. Indirect cost centers include maintenance, public safety, system and services, and administrative. Airlines rates and charges are based on cost center requirements. The Authority s migration to cost center budgeting allows for identification of specific area expenses, including airfield and terminal. The total requirement budget is provided for certain cost centers. 103

114 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Airfield Signatory Landing Fee (Net Stlmnt) $31,498,307 $34,137,152 Nonsignatory Landing Fees 1,344,651 1,438,101 General Aviation 35,260 39,484 Transfers 4,657,184 5,588,261 Other Rents 0 0 Concessions 0 0 Utilities 75,009 69,900 Other Revenues 8,750 7,300 TOTAL REVENUES PLUS TRANSFER $37,619,161 $41,280,199 O&M Expenses (Direct): Payroll & Employee Benefits $2,702,209 $3,151,575 Other Services 1,645,247 1,691,111 Supplies & Materials 382, ,636 Miscellaneous 749, ,853 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 2,045,589 2,401,897 Public Safety 6,628,672 7,706,129 Administration 8,619,315 10,019,763 Systems & Services 424, ,392 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $23,197,260 $26,726,358 NET REVENUES $14,421,902 $14,553,841 O&M Reserve Requirement Increment $256,572 $224,131 Debt Service 9,714,876 9,467,499 Federal Lease Payment 464, ,028 NET CASH FLOW $3,985,686 $4,245,183 Coverage (All Debt)

115 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Terminal A Signatory Terminal Rntls (Net Stlmnt) $5,109,108 $5,098,396 Transfers 914,414 1,287,741 Security Reimb (Net Settlement) 0 0 Other Rents 397, ,000 Concessions 1,758,323 1,755,421 Utilities 66,090 37,500 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $8,245,175 $8,578,058 O&M Expenses (Direct): Payroll & Employee Benefits $752,104 $877,175 Other Services 1,523,866 1,566,347 Supplies & Materials 380, ,303 Miscellaneous 865, ,076 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 1,314,870 1,504,060 Public Safety 225, ,545 Administration 2,994,087 3,348,861 Systems & Services 1,897 2,264 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $8,058,020 $8,932,632 NET REVENUES $187,156 ($354,573) O&M Reserve Requirement Increment $89,125 $74,910 Debt Service 1,124,328 1,238,435 Federal Lease Payment 161, ,227 NET CASH FLOW ($1,187,744) ($1,874,146) Coverage (All Debt) 0.17 (0.29) 105

116 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Terminal B & C Signatory Terminal Rntls (Net Stlmnt) $58,888,773 $58,494,945 Transfers 11,545,380 14,396,564 Security Reimb (Net Settlement) 0 0 Other Rents 395, ,400 Concessions 13,505,928 13,307,800 TSA Security Fees 898, ,460 Utilities 1,196,198 1,171,000 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $86,430,258 $88,696,169 O&M Expenses (Direct): Payroll & Employee Benefits $2,046,727 $2,387,089 Other Services 5,468,590 5,621,038 Supplies & Materials 500, ,453 Miscellaneous 1,806,676 1,932,377 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 3,667,077 4,150,350 Public Safety 6,164,023 7,105,396 Administration 14,130,545 16,190,485 Systems & Services 5,143,723 6,139,189 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $38,928,156 $44,112,378 NET REVENUES $47,502,102 $44,583,791 O&M Reserve Requirement Increment $420,625 $362,163 Debt Service 37,803,242 35,647,000 Federal Lease Payment 761, ,028 NET CASH FLOW $8,516,293 $7,577,600 Coverage (All Debt)

117 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Ground Transportation Other Rents $200,563 $201,240 Concessions 52,545,549 52,312,000 Utilities 188, ,640 Other Revenues 1,389,116 1,446,354 DSRF Investment Earnings 4,445,586 4,334,934 P&I Investment Earnings 1,527,659 1,619,893 O&M Fund Investment Earnings 6,149,994 4,865,206 TOTAL REVENUES $66,446,485 $64,965,268 O&M Expenses (Direct): Payroll & Employee Benefits $651,424 $759,753 Other Services 3,140,707 3,228,260 Supplies & Materials 175, ,030 Miscellaneous 855, ,693 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 1,800,317 2,013,772 Public Safety 2,275,135 2,671,191 Administration 6,786,244 7,719,825 Systems & Services 2,579,791 3,079,059 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $18,263,894 $20,591,585 NET REVENUES $48,182,591 $44,373,683 O&M Reserve Requirement Increment $202,006 $172,684 Debt Service 17,975,400 18,168,050 Federal Lease Payment 365, ,395 NET CASH FLOW $29,639,259 $25,557,554 Coverage (All Debt)

118 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Aviation Other Rents $7,697,401 $7,955,005 Concessions 960, ,000 Utilities 546, ,000 Other Revenues 0 0 TOTAL REVENUES $9,204,808 $9,475,005 O&M Expenses (Direct): Payroll & Employee Benefits $317,299 $370,065 Other Services 93,722 96,335 Supplies & Materials 21,160 24,779 Miscellaneous 304, ,460 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 274, ,967 Public Safety 1,647,754 1,934,063 Administration 2,475,065 2,935,842 Systems & Services 1,526,940 1,822,449 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $6,661,171 $7,830,961 NET REVENUES $2,543,636 $1,644,044 O&M Reserve Requirement Increment $73,675 $65,671 Debt Service 6,911,696 6,824,151 Federal Lease Payment 133, ,792 NET CASH FLOW ($4,575,195) ($5,426,571) Coverage (All Debt)

119 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Nonaviation Other Rents $0 $0 Concessions 0 0 Utilities 0 0 Other Revenues 194, ,193 TOTAL REVENUES $194,772 $160,193 O&M Expenses (Direct): Payroll & Employee Benefits $2,813 $3,281 Other Services 2,920 3,001 Supplies & Materials 893 1,046 Miscellaneous Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 2,522 2,944 Public Safety 72,787 84,553 Administration 149, ,105 Systems & Services 170, ,670 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $402,124 $477,737 NET REVENUES ($207,352) ($317,544) O&M Reserve Requirement Increment $4,448 $4,006 Debt Service 136, ,787 Federal Lease Payment 8,057 11,029 NET CASH FLOW ($356,223) ($466,367) Coverage (All Debt) (1.52) (2.37) 109

120 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Tenant Equipment Equipment Charges $2,145,431 $1,560,028 Transfers 455, ,143 TOTAL REVENUES $2,600,713 $2,080,171 TOTAL O&M EXPENSES $0 $0 NET REVENUES $2,600,713 $2,080,171 O&M Reserve Requirement Increment $0 $0 Debt Service 2,080,570 1,664,137 NET CASH FLOW $520,143 $416,034 Coverage (All Debt) Ronald Reagan Washington National Airport Maintenance O&M Expenses (Direct): Payroll & Employee Benefits $6,241,433 $7,279,357 Other Services 1,498,949 1,540,736 Supplies & Materials 1,133,329 1,327,178 Miscellaneous 231, ,719 Capital Expenditures 0 0 TOTAL O&M EXPENSES $9,105,317 $10,394,990 Ronald Reagan Washington National Airport Public Safety O&M Expenses (Direct): Payroll & Employee Benefits $15,961,983 $18,616,393 Other Services 506, ,981 Supplies & Materials 433, ,502 Miscellaneous 111, ,001 Capital Expenditures 0 0 TOTAL O&M EXPENSES $17,013,470 $19,763,

121 BUDGET BY COST CENTERS Ronald Reagan Washington National Airport Administration O&M Expenses (Direct): Payroll & Employee Benefits $20,786,546 $24,243,262 Other Services 12,045,363 13,579,103 Supplies & Materials 695, ,184 Miscellaneous 1,627,498 1,757,332 Capital Expenditures 0 0 TOTAL O&M EXPENSES $35,154,671 $40,393,882 Ronald Reagan Washington National Airport Systems & Services O&M Expenses (Direct): Payroll & Employee Benefits $1,501,720 $1,751,450 Utilities 7,449,738 9,015,050 Other Services 408, ,986 Supplies & Materials 447, ,139 Miscellaneous 39,641 42,399 Capital Expenditures 0 0 TOTAL O&M EXPENSES $9,847,277 $11,753,

122 BUDGET BY COST CENTERS Washington Dulles International Airport Airfield Signatory Landing Fee (Net Stlmnt) $45,490,573 $54,792,253 Signatory Apron Fees 3,555,826 4,296,768 Nonsignatory Landing Fees 2,572,204 1,362,118 General Aviation 3,913,256 5,010,103 Transfers 16,201,990 20,801,026 Other Rents 26,120 23,000 Concessions 262, ,000 Utilities 44,750 47,000 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $72,067,469 $86,593,268 ADJUSTED REVENUES $72,067,469 $86,593,268 O&M Expenses (Direct): Payroll & Employee Benefits $4,382,989 $5,180,116 Other Services 9,383,772 9,874,683 Supplies & Materials 2,274,452 2,052,221 Miscellaneous 883,646 1,018,187 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 4,826,794 5,427,596 Public Safety 7,576,039 8,829,832 Administration 10,368,416 11,056,372 Systems & Services 68,169 89,858 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $39,764,276 $43,528,864 NET REVENUES $32,303,193 $43,064,404 O&M Reserve Requirement Increment $491,628 $408,279 Debt Service 21,911,956 30,511,291 Direct Senior Bond Debt Service 19,268,870 27,735,097 Indirect Senior Bond Debt Service 2,643,086 2,776,194 Federal Lease Payment 857, ,172 NET CASH FLOW $9,041,970 $11,416,662 Coverage (All Debt)

123 BUDGET BY COST CENTERS Washington Dulles International Airport Concourse C&D Signatory Terminal Rntls (Net Stlmnt) $11,237,363 $13,059,633 Transfers 4,821,218 4,998,235 Security Reimb (Net Settlement) 0 0 Other Rents 759, ,000 Concessions 8,726,531 9,548,000 Utilities 107, ,000 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $25,651,556 $28,655,868 O&M Expenses (Direct): Payroll & Employee Benefits $540,110 $638,339 Other Services 3,772,190 3,969,532 Supplies & Materials 136, ,179 Miscellaneous 245, ,425 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 1,338,658 1,501,286 Public Safety 1,284,444 1,501,976 Administration 3,111,410 3,404,695 Systems & Services 1,504,241 1,982,829 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $11,932,678 $13,404,262 NET REVENUES $13,718,878 $15,251,606 O&M Reserve Requirement Increment $147,530 $125,725 Debt Service 4,630,507 5,274,037 Direct Senior Bond Debt Service 2,765,275 3,172,252 Indirect Senior Bond Debt Service 1,865,231 2,101,785 Federal Lease Payment 257, ,233 NET CASH FLOW $8,683,476 $9,627,610 Coverage (All Debt)

124 BUDGET BY COST CENTERS Washington Dulles International Airport Concourse B Signatory Terminal Rntls (Net Stlmnt) $7,555,492 $8,838,178 Transfers 3,345,512 3,565,104 Security Reimb (Net Settlement) 0 0 Other Rents 158, ,227 Concessions 6,143,166 9,208,962 Utilities 96, ,598 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $17,299,432 $21,957,069 O&M Expenses (Direct): Payroll & Employee Benefits $827,097 $977,520 Other Services 3,890,669 4,094,209 Supplies & Materials 280, ,457 Miscellaneous 502, ,428 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 1,568,980 1,768,137 Public Safety 727, ,333 Administration 3,003,435 3,224,131 Systems & Services 717, ,167 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $11,518,579 $12,693,381 NET REVENUES $5,780,853 $9,263,688 O&M Reserve Requirement Increment $142,411 $119,058 Debt Service 2,893,332 5,482,165 Direct Senior Bond Debt Service 1,682,250 4,144,776 Indirect Senior Bond Debt Service 1,211,083 1,337,389 Federal Lease Payment 248, ,341 NET CASH FLOW $2,496,677 $3,450,124 Coverage (All Debt)

125 BUDGET BY COST CENTERS Washington Dulles International Airport Main Terminal Signatory Terminal Rntls (Net Stlmnt) $44,606,032 $47,298,329 Transfers 20,957,165 23,034,419 Security Reimb (Net Settlement) 0 0 Other Rents 519, ,000 Concessions 6,090,044 6,456,125 TSA Security Fees 404, ,000 Utilities 25, ,132 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $72,602,993 $77,834,005 O&M Expenses (Direct): Payroll & Employee Benefits $1,187,065 $1,402,955 Other Services 7,461,511 7,851,859 Supplies & Materials 587, ,122 Miscellaneous 1,030,064 1,186,898 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 2,927,804 3,285,517 Public Safety 4,653,574 5,385,972 Administration 7,019,069 7,649,795 Systems & Services 2,457,272 3,239,075 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $27,323,886 $30,532,193 NET REVENUES $45,279,106 $47,301,812 O&M Reserve Requirement Increment $332,815 $282,484 Debt Service 35,560,455 37,238,988 Direct Subordinate Debt Service 0 0 Indirect Subordinate Debt Service 0 0 Direct Senior Bond Debt Service 31,981,713 33,244,358 Indirect Senior Bond Debt Service 3,578,742 3,994,631 Federal Lease Payment 580, ,815 NET CASH FLOW $8,805,243 $9,276,525 Coverage (All Debt)

126 BUDGET BY COST CENTERS Washington Dulles International Airport Airside Operations Building Signatory Terminal Rntls (Net Stlmnt) $246,650 $297,829 Transfers 116, ,693 Other Rents 48,443 50,000 Concessions 0 0 Utilities 30,664 35,000 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $442,485 $499,522 O&M Expenses (Direct): Payroll & Employee Benefits $0 $0 Other Services 0 0 Supplies & Materials 0 0 Miscellaneous 18,913 21,793 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 5,394 6,526 Public Safety 123, ,088 Administration 64,468 74,471 Systems & Services 35,136 46,314 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $247,245 $293,193 NET REVENUES $195,240 $206,329 O&M Reserve Requirement Increment $3,057 $2,750 Debt Service 118, ,919 Direct Senior Bond Debt Service 70,654 73,204 Indirect Senior Bond Debt Service 47,440 53,716 Federal Lease Payment 5,333 4,905 NET CASH FLOW $68,757 $71,755 Coverage (All Debt)

127 BUDGET BY COST CENTERS Washington Dulles International Airport International Arrivals Building Signatory IAB Fees $6,547,985 $7,144,536 Transfers 3,100,702 3,098,493 Other Rents 0 0 Concessions 0 0 Utilities 0 0 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $9,648,687 $10,243,028 O&M Expenses (Direct): Payroll & Employee Benefits $128,385 $151,734 Other Services 1,277,180 1,343,996 Supplies & Materials 18,919 17,071 Miscellaneous 194, ,282 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 461, ,170 Public Safety 141, ,797 Administration 879, ,159 Systems & Services 269, ,811 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $3,371,719 $3,725,020 NET REVENUES $6,276,968 $6,518,008 O&M Reserve Requirement Increment $41,686 $34,939 Debt Service 4,902,209 5,100,912 Direct Senior Bond Debt Service 4,506,394 4,660,466 Indirect Senior Bond Debt Service 395, ,446 Federal Lease Payment 72,721 62,314 NET CASH FLOW $1,260,351 $1,319,844 Coverage (All Debt)

128 BUDGET BY COST CENTERS Washington Dulles International Airport Concourse C IAB Signatory IAB Fees $2,477,302 $2,972,086 Transfers 957,558 1,026,727 Other Rents 0 0 Concessions 0 0 Utilities 0 0 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $3,434,860 $3,998,813 O&M Expenses (Direct): Payroll & Employee Benefits $50,515 $59,702 Other Services 352, ,259 Supplies & Materials 12,768 11,521 Miscellaneous 22,924 26,414 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 125, ,411 Public Safety 771, ,162 Administration 668, ,454 Systems & Services 558, ,664 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $2,563,084 $3,013,587 NET REVENUES $871,777 $985,226 O&M Reserve Requirement Increment $31,689 $28,266 Debt Service 1,134,644 1,222,575 Direct Senior Bond Debt Service 524, ,137 Indirect Senior Bond Debt Service 609, ,438 Federal Lease Payment 55,281 50,413 NET CASH FLOW ($349,837) ($316,028) Coverage (All Debt)

129 BUDGET BY COST CENTERS Washington Dulles International Airport Concourse A Signatory Terminal Rntls (Net Stlmnt) $3,746,416 $3,771,843 Transfers 1,242,573 1,558,658 Security Reimb (Net Settlement) 0 0 Other Rents 0 0 Concessions 1,142,802 1,224,000 Utilities 26,565 30,000 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $6,158,356 $6,584,502 O&M Expenses (Direct): Payroll & Employee Benefits $127,778 $151,017 Other Services 1,204,339 1,267,344 Supplies & Materials 15,270 13,778 Miscellaneous 79,066 91,104 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 406, ,135 Public Safety 55,717 64,943 Administration 674, ,906 Systems & Services 24,168 31,858 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $2,587,948 $2,783,085 NET REVENUES $3,570,408 $3,801,416 O&M Reserve Requirement Increment $31,996 $26,104 Debt Service 583, ,219 Direct Senior Bond Debt Service 422, ,727 Indirect Senior Bond Debt Service 161, ,492 Federal Lease Payment 55,817 46,557 NET CASH FLOW $2,899,036 $3,094,536 Coverage (All Debt)

130 BUDGET BY COST CENTERS Washington Dulles International Airport Z Gates Signatory Terminal Rntls (Net Stlmnt) $1,352,318 $1,363,554 Transfers 709, ,730 Security Reimb (Net Settlement) 0 0 Other Rents 0 0 Concessions 134, ,000 Utilities 6,209 6,500 Other Revenues 0 0 TOTAL REVENUES PLUS TRANSFER $2,203,478 $2,387,785 O&M Expenses (Direct): Payroll & Employee Benefits $35,756 $42,259 Other Services 55,029 57,908 Supplies & Materials 16,012 14,448 Miscellaneous 0 0 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 30,458 34,322 Public Safety 80,667 94,519 Administration 78,387 84,830 Systems & Services 4,316 5,689 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $300,626 $333,974 NET REVENUES $1,902,852 $2,053,810 O&M Reserve Requirement Increment $3,717 $3,133 Debt Service 1,560,382 1,592,623 Direct Senior Bond Debt Service 1,535,924 1,566,390 Indirect Senior Bond Debt Service 24,458 26,234 Federal Lease Payment 6,484 5,587 NET CASH FLOW $332,269 $452,468 Coverage (All Debt)

131 BUDGET BY COST CENTERS Washington Dulles International Airport Ground Transportation Other Rents $1,235,582 $1,100,000 Concessions 67,126,634 70,785,192 Utilities 320, ,800 Other Revenues 4,177,695 4,234,230 DSRF Investment Earnings 6,198,447 6,314,739 P&I Investment Earnings 2,590,640 2,918,677 O&M Fund Investment Earnings 9,579,120 7,509,794 TOTAL REVENUES $91,228,374 $93,221,431 O&M Expenses (Direct): Payroll & Employee Benefits $787,419 $930,626 Other Services 2,621,047 2,758,166 Supplies & Materials 438, ,297 Miscellaneous 4,138,599 4,768,730 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 2,277,287 2,650,978 Public Safety 1,625,859 1,904,018 Administration 4,849,822 5,400,653 Systems & Services 1,861,587 2,453,868 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $18,599,722 $21,262,335 NET REVENUES $72,628,652 $71,959,096 O&M Reserve Requirement Increment $229,959 $199,430 Debt Service 19,043,266 22,160,217 Direct Subordinate Debt Service 0 0 Indirect Subordinate Debt Service 0 0 Direct Senior Bond Debt Service 16,524,634 19,312,171 Indirect Senior Bond Debt Service 2,518,633 2,848,046 Federal Lease Payment 401, ,687 NET CASH FLOW $52,954,267 $49,243,762 Coverage (All Debt)

132 BUDGET BY COST CENTERS Washington Dulles International Airport Aviation Other Rents $7,142,446 $11,751,229 Concessions 16,801,130 17,036,000 Utilities 2,111,033 2,553,720 Other Revenues 0 0 TOTAL REVENUES $26,054,609 $31,340,949 O&M Expenses (Direct): Payroll & Employee Benefits $62,199 $73,512 Other Services 79,479 83,637 Supplies & Materials 7,537 6,800 Miscellaneous 163, ,193 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 89, ,449 Public Safety 1,162,981 1,361,316 Administration 1,827,544 2,242,519 Systems & Services 3,616,678 4,767,357 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $7,008,877 $8,828,783 NET REVENUES $19,045,732 $22,512,166 O&M Reserve Requirement Increment $86,655 $82,810 Debt Service 6,279,726 11,119,774 Direct Senior Bond Debt Service 3,081,209 7,402,015 Indirect Senior Bond Debt Service 3,198,517 3,717,760 Federal Lease Payment 151, ,692 NET CASH FLOW $12,528,184 $11,161,889 Coverage (All Debt)

133 BUDGET BY COST CENTERS Washington Dulles International Airport Nonaviation Other Rents $752,641 $643,734 Concessions 2,797,122 3,092,422 Utilities 1,496,035 1,669,169 Other Revenues 191, ,000 TOTAL REVENUES $5,236,858 $5,705,325 O&M Expenses (Direct): Payroll & Employee Benefits $15,371 $18,166 Other Services 8,938 9,405 Supplies & Materials Miscellaneous 58,288 67,163 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 23,684 28,490 Public Safety 1,507,146 1,763,897 Administration 1,307,314 1,581,829 Systems & Services 2,092,537 2,758,296 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $5,013,727 $6,227,651 NET REVENUES $223,132 ($522,326) O&M Reserve Requirement Increment $61,987 $58,412 Debt Service 3,166,754 3,567,946 Direct Senior Bond Debt Service 1,213,792 1,307,104 Indirect Senior Bond Debt Service 1,952,961 2,260,841 Federal Lease Payment 108, ,179 NET CASH FLOW ($3,113,746) ($4,252,863) Coverage (All Debt) 0.07 (0.15) 123

134 BUDGET BY COST CENTERS Washington Dulles International Airport Cargo Other Rents $3,115,544 $3,200,000 Concessions 892, ,000 Utilities 886, ,000 Other Revenues 0 0 TOTAL REVENUES $4,894,289 $5,055,000 O&M Expenses (Direct): Payroll & Employee Benefits $44,214 $52,255 Other Services 35,093 36,929 Supplies & Materials 3,570 3,222 Miscellaneous 63,045 72,644 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 41,615 49,424 Public Safety 441, ,804 Administration 523, ,736 Systems & Services 853,559 1,125,126 Tenant Equipment N/A N/A TOTAL O&M EXPENSES $2,006,158 $2,487,140 NET REVENUES $2,888,131 $2,567,860 O&M Reserve Requirement Increment $24,803 $23,328 Debt Service 2,175,668 2,111,859 Direct Senior Bond Debt Service 1,392,261 1,203,836 Indirect Senior Bond Debt Service 783, ,023 Federal Lease Payment 43,269 41,606 NET CASH FLOW $644,391 $391,067 Coverage (All Debt)

135 BUDGET BY COST CENTERS Washington Dulles International Airport Passenger Conveyance Signatory Revenue (Net Settlement) $15,686,132 $17,743,023 Passenger Conveyance Transfers 5,430,042 5,886,121 Mobile Lounge Fees 0 0 TOTAL REVENUES 21,116,174 23,629,144 O&M Expenses (Direct): Payroll & Employee Benefits $11,244,202 $13,289,165 Other Services $1,649,922 $1,736,237 Supplies & Materials 2,330,525 2,102,816 Miscellaneous 1,302,455 1,500,763 Capital Expenditures 0 0 O&M Expenses (Indirect): Maintenance 0 0 Public Safety 0 0 Administration 0 0 Systems & Services 0 0 Tenant Equipment N/A N/A TOTAL O&M EXPENSES 16,527,104 18,628,981 NET REVENUES $4,589,070 $5,000,164 O&M Reserve Requirement Increment $0 $0 Debt Service $3,569,003 $3,896,438 Direct Subordinate Debt Service 0 0 Indirect Subordinate Debt Service 0 0 Direct Senior Bond Debt Service 3,569,003 3,896,438 Indirect Senior Bond Debt Service 0 0 Federal Lease Payment 0 0 Repayment to Virginia 0 0 NET CASH FLOW $1,020,067 $1,103,726 Coverage (All Debt)

136 BUDGET BY COST CENTERS Washington Dulles International Airport Tenant Equipment Equipment Charges $957,514 $905,751 Transfers 226, ,720 TOTAL REVENUES $1,183,598 $1,142,470 TOTAL O&M EXPENSES $0 $0 NET REVENUES $1,183,598 $1,142,470 O&M Reserve Requirement Increment $0 $0 Debt Service 946, ,976 NET CASH FLOW $236,720 $228,494 Coverage (All Debt) Washington Dulles International Airport Maintenance O&M Expenses (Direct): Payroll & Employee Benefits $10,588,670 $12,514,412 Other Services 1,532,942 1,613,138 Supplies & Materials 1,839,814 1,660,051 Miscellaneous 162, ,838 Capital Expenditures 0 0 TOTAL O&M EXPENSES $14,123,577 $15,974,440 Ronald Reagan Washington National Airport Public Safety O&M Expenses (Direct): Payroll & Employee Benefits $18,528,629 $21,898,397 Other Services 510, ,869 Supplies & Materials 932, ,624 Miscellaneous 181, ,768 Capital Expenditures 0 0 TOTAL O&M EXPENSES $20,152,752 $23,485,

137 BUDGET BY COST CENTERS Washington Dulles International Airport Administration O&M Expenses (Direct): Payroll & Employee Benefits $22,549,242 $26,650,232 Other Services 10,587,355 9,914,798 Supplies & Materials 957, ,879 Miscellaneous 281, ,642 Capital Expenditures 0 0 TOTAL O&M EXPENSES 34,375,247 37,769,551 Ronald Reagan Washington National Airport Systems & Services O&M Expenses (Direct): Payroll & Employee Benefits $1,003,745 $1,186,294 Utilities 12,129,911 16,419,850 Other Services 520, ,731 Supplies & Materials 350, ,260 Miscellaneous 58,821 67,777 Capital Expenditures 0 0 TOTAL O&M EXPENSES $14,063,486 $18,537,

138 INTENTIONALLY LEFT BLANK

139 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM PROGRAM SUMMARY The COMIP provides for repair work at Reagan National and Washington Dulles, equipment and projects, snow removal, planning, improvements, and operational initiatives. The Authority s share of NRR is the primary source of funding for COMIP projects in accordance with the Agreement, and may be supplemented by grants Funding Requirements The new 2008 program authority for COMIP totals $32,843,000. The COMIP authorization for 2008 is $2,223,400 for Consolidated Functions, $11,069,000 at Reagan National and $19,550,700 at Washington Dulles. List of Projects Projects are listed by Airport, grouped into major functional categories, and designated by funding source. The column titled 2008 Program designates new funding for new and previously authorized projects. 129

140 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY SUMMARY BY FUNDING SOURCE PROJECTED PROJECTED ESTIMATED CARRY-OVER 2008 CARRY-OVER & EXPENDITURES DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM CONSOLIDATED FUNCTIONS Capital Fund 60 $11,449,400 $2,223,400 $13,672,800 $3,065,000 $9,857,800 $750,000 Federal Grant FG Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Total Consolidated Functions $11,449,400 $2,223,400 $13,672,800 $3,065,000 $9,857,800 $750,000 RONALD REAGAN WASHINGTON NATIONAL AIRPORT Capital Fund 60 $23,929,600 $11,069,000 $34,998,600 $16,372,200 $13,539,000 $5,087,400 Federal Grant FG 3,387, ,387,000 1,600,000 1,200, ,000 Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Total Ronald Reagan Washington National Airport $27,316,600 $11,069,000 $38,385,600 $17,972,200 $14,739,000 $5,674,400 WASHINGTON DULLES INTERNATIONAL AIRPORT Capital Fund 60 $34,556,300 $19,550,700 $54,107,000 $20,339,700 $21,783,200 $11,984,100 Federal Grant FG 835, , , ,600 Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Total Washington Dulles International Airport $35,391,900 $19,550,700 $54,942,600 $20,539,700 $21,783,200 $12,619,700 METROPOLITAN WASHINGTON AIRPORTS AUTHORITY Capital Fund 60 $69,935,300 $32,843,100 $102,778,400 $39,776,900 $45,180,000 $17,821,500 Federal Grant FG 4,222, ,222,600 1,800,000 1,200,000 1,222,600 Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Total Metropolitan Washington Airports Authority $74,157,900 $32,843,100 $107,001,000 $41,576,900 $46,380,000 $19,044,100 FUND: Fund 60 - Capital Fund; FG - Federal Grant; LOI - Letter of Intent Discretionary Grant; and CVG - Commonwealth of Virginia State Grant 130

141 CAPITAL OPERATING, MAINTENANCE & INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY CONSOLIDATED FUNCTIONS PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM OTHER Equipment - Engineering Copier 60 25,000 25,000 25, Equipment - Engineering Vehicles 60 80,000 80,000 80, Information Technology Equipment , , , , AAAE Sponsorship , , , Compensation Studies , ,000 1,500, , , Finance Office - Hangar 11 Fit-out , ,000 85,000 20, Revenue Collection Systems - Finance 60 70,000 70,000 70, Lektriever Filing System - Engineering 60 15,000 15,000 15, Lektriever Filing System - Audit 60 30,000 30,000 30, Public Safety Radio Replacements 60 97,400 97,400 97, Replacement Vehicles - Engineering , , , New Vehicles - Radio and Wireless 60 90,000 90,000 90, Organization Planning and Programming , , , Public Safety - Capital Equipment , , , Dulles Toll Road/Rail Program 60 9,351,900 9,351,900 2,000,000 7,351,900 Subtotal Other 11,449,400 2,223,400 13,672,800 3,065,000 9,857, ,000 Summary of Funding Source Capital Fund 60 11,449,400 2,223,400 13,672,800 3,065,000 9,857, ,000 Federal Grant FG Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Subtotal Consolidated Functions $11,449,400 $2,223,400 $13,672,800 $3,065,000 $9,857,800 $750,000 FUND: Fund 60 - Capital Fund; FG - Federal Grant; LOI - Letter of Intent Discretionary Grant; and CVG - Commonwealth of Virginia State Grant 131

142 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM ROADS 3108 Roadway Modification - Garage B&C Entry Lanes , , , ,000 Subtotal Roads 200, , , ,000 0 BUILDINGS 3000 Rehabilitate North Hangars , , , , Facility Repairs , , ,000 50, Repair Baggage Belt Systems , , , , Terminal B/C Structural Paint , , , North Hangar Line Heat 60 67,000 67,000 15,000 20,000 32, West Building Mechanical & Electrical MODs , , , , Facility Repairs -Terminal B/C Restroom Repairs 60 1,375,000 1,095,000 2,470,000 1,375, , , Replace Roofing -Terminal B/C Roof Drains & Dome Valleys , , , , Fixed Camera - Blue Doors Access to AOA , , , , Hangar 5 Vehicle Bay Install & Office Space Renovation , ,000 50,000 70,000 55, Moving Walkway , , , Replace Air Condition Rooftop Units Hangar 11/12/Terminal A , ,000 60,000 60,000 30, Replace Roofing , , , , Rehab North Hangars -Fire Alarm System H11/12/Terminal 60 50,000 50,000 50, Operations Computer Room Rehabilitation , , , Replace Roofing - DCA Air Traffic Control Tower , , , Rehabilitation of Sanitary Force Main , , , Restroom Rehabilitation - Taxi Parking Structure , , , Facility Start-up - Consolidated Communications Center , , , , Facility Start-up - Aircraft Rescue Fire Fighting Station , , , , Facility Start-up - Consolidated Office Building , , ,000 Subtotal Airfield Facilities 5,639,000 3,240,000 8,954,000 3,567,000 4,607, ,000 AIRFIELD FACILITIES 3092 Runway Safety Area (RSA) Evaluation Analysis , , , Taxiway J & K Repairs & Replace Concrete Taxiway B 60 1,368,000 1,250,000 2,618,000 1,368,000 1,250, Pavement Marking & Signage , ,000 50,000 50, Pavement Management System - Airside , , , ,000 Subtotal Airfield Facilities 2,008,000 1,250,000 3,258,000 1,818,000 1,440,

143 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM PARKING FACILITIES 3093 Frequent Parker Program , , , , ,000 Subtotal Parking Facilities 336, , , , ,000 UTILITY SYSTEMS 3005 Radio Communication Systems 60 39,000 39,000 20,000 19, Telecommunications Equipment 60 8,000 8,000 8, Airport CommunicationTelephony System Upgrade 60 24,000 24,000 10,000 14, Steam Lines Repair 60 93,000 93,000 30,000 30,000 33, Electronic Information Modification 60 1,103,000 1,805,000 2,908,000 1,000,000 1,000, , Radio Life Cycle , , , , MHz Radios 60 4,000 4,000 4, Radio Communication Fiber Link , ,000 75, , Industrial Waste Line & Oil Water Separators , , , Utility Meter Automation , ,000 50,000 50, Radio Alarms/Controls Remote Assessment 60 40,000 40,000 10,000 15,000 15, GIS/GPS Support System , ,000 50,000 50, Public Safety Command Vehicle Radios 60 65,000 65,000 50,000 15, Voice Mail System and Voice Over Internet Protocol , , ,000 65, Radio Projects & Misc Upgrades , , , , , Communications F&E System Integration , , , , ,000 Subtotal Utility Systems 3,087,000 1,805,000 4,892,000 1,737,000 1,858,000 1,297,000 OTHER 3009 Automated Vehicle ID-Taxicabs 60 43,000 43,000 43, Commercial Program Investment 60 1,820, ,000 2,145,000 1,365, , Security Study and Infeastructure Improvements FG 2,374,000 2,374,000 1,000,000 1,200, ,000 Subtotal Security Study & Infeastructure Improvements 2,374, ,374,000 1,000,000 1,200, , Capital Equipment & Facility Repair Projects (Bus) 60 1,454,000 1,454, , , Snow Removal Program , ,000 1,025,400 50,000 50, , Common-Use-Self-Service (CUSS) Kiosks Study 60 38,000 38,000 38, Vital Records Protection System Study , , ,000 20, Homeland Security Hardening Protection FG 1,013,000 1,013, , , Environmental Compliance Program , , , , Statue Site Preparation , , , Equipment, Facility Repair and Maintenance Projects 60 1,527,000 1,527,000 1,000, , , CF - Information Technology Equipment , , ,

144 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM OTHER-CONTINUED Public Safety Capital Equipment - National , , , Public Safety Capital Equipment - Consolidated Functions , , , Energy Assistance Program , , , Business Process Reengineering 60 2,089, ,000 2,714,000 2,089, , Concept/Design Exhibit of Dulles Train System 60 78,000 78,000 78, Payment Card Industry (PCI) Compliance , , , , Security Study & Infrastructure Improvements , , , , , Equipment & Facility Repair Projects 60 1,500,000 1,500,000 1,500, Public Safety - Capital Equipment 60 79,000 79,000 79, Environmental Compliance Program 60 11,000 11,000 11, /4412 Planning/Programming Studies , , ,000 93, Information Technology Systems Enhancements , , , , CrashNet System Replacement , , , Security Video Matrix Switch , , , Security , , , Arts Program , , , Equipment & Facility Repair Projects 60 1,522,000 1,522, , , Public Safety Equipment - Public Safety , , ,000 Subtotal Other 15,971,600 4,774,000 20,745,600 10,650,200 6,634,000 3,461,400 Summary of Funding Source Capital Fund 60 23,929,600 11,069,000 34,998,600 16,372,200 13,539,000 5,087,400 Federal Grant FG 3,387, ,387,000 1,600,000 1,200, ,000 Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Subtotal National Airport $27,316,600 $11,069,000 $38,385,600 $17,972,200 $14,739,000 $5,674,400 FUND: Fund 60 - Capital Fund; FG - Federal Grant; LOI - Letter of Intent Discretionary Grant; and CVG - Commonwealth of Virginia State Grant 134

145 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM ROADS 3590 Rehabilitate Access Highway Bridges , ,000 1,305, , , , Landside Roadway Rehabilitation , ,000 1,467, , , , Access Highway Bridges (Cashier Plaza, Scott Run, Horsepen , , ,000 Subtotal Roads 2,135,000 1,000,000 3,135,000 1,063, ,000 1,172,000 BUILDINGS 3597 Rehabilitate Cargo Buildings , , , Baggage Belt Rehabilitation , , , , , , Paint Spray Building Fire Suppression , ,000 54, , Reroof Buildings 60 17, , ,000 17, , Authority-owned Jet Bridge Modifications , ,000 1,479, , , , Sprinkler System Modification Concourse B , , , , , Transfer Baggage Holding Facility , , , , , Airline Space Relocation , , , , , Baggage Belt Replacement (Claims 3&4) , , , , Engineering & Maintenance Relocation , , , Ticket Counter LED Replacement 60 65,000 65,000 25,000 40, ATC Space Conversion -Authority Use & Pass & ID , , ,000 60,000 50, New Facility Start-Up 60 1,726,000 1,200,000 2,926,000 1,500,000 1,426, Transportation Security Agency (TSA) Offices , , , , Conference Room Improvements - Main Terminal , , , Fueling Station Improvements - Shop , , , , , Buy-out of Authority Airline Permitted Space , , , , , Buy-out & Enhance of Taxicab Lounge & Ops Bldg , , , Restroom Renovation Program - Main Terminal , , , Improvements to the Supplemental Radiating Systems (SRS) , , , IAD Pedestrian Walkback Tunnel Modifications , , ,000 Subtotal Buildings 7,426,000 3,615,000 11,041,000 4,055,000 4,988,000 1,998,000 AIRFIELD FACILITIES 3503 Aircraft Guidance System 60 30,000 30,000 30, Airfield Pavement Repairs 60 2,994,000 3,000,000 5,994,000 2,994,000 3,000, Rehabilitate Mobile Lounge Road/Apron , ,000 40, , Airfield Storm Sewer Inlet Erosion Repairs , , , Airside Concrete Service Road , , , , ,000 New Taxilane A, B, & C Trench Drain Repairs 60 1,000,000 1,000,000 1,000,000 Subtotal Airfield Facilities 4,189,000 4,000,000 8,114,000 3,164,000 4,750, ,

146 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM PARKING FACILITIES 3733 Parking Lot Repairs 60 56,000 56,000 56, Fire Alarm System Repairs Daily Garages , , , , ,000 Subtotal Parking Facilities 556, , , , ,000 UTILITY SYSTEMS 3509 Radio Communication Systems , , , , , Sanitary Sewer System Rehabilitation 60 17,000 17,000 17, Comprehensive Utility Survey Update , , , , , Standby Power - Terminal Buildings 60 95,000 95,000 95, Global Positioning System Field Data , , , , , Federal Compliance Law - Radio Systems 60 16,000 16,000 16, HVAC Renovations to Telephone/Weather Bldg 60 67,000 67,000 67, Radios Life Cycle , , , Radio System Security Initiative 60 42,500 42,500 42, Electrical Unit Substation Replacement , ,000 1,296, , , , Replace Electrical Feeder Laterals ,000 1,000,000 1,639, , , , Utility Meter Automation , , , , Telephone Cable Plant , , , , , , Telecom Equipment Fiber Copper Cabling SONET/ACS , ,000 50,000 50, GIS/GPS Support System , ,000 50,000 50, Automatic Control of Electrical Loads , ,000 72,000 48, Public Safety Command Vehicle Radios , ,000 66,000 44, HVAC Improvements (Shop 1, 2 & Metal Shop) , , , , , Electrical Unit Substation Replacement , , , , Telecommunications Equipment , , , , E-Line Sanitary Sewer Rehabilitation , , ,000 Subtotal Utility Systems 5,064,500 2,055,000 7,119,500 2,580,500 2,896,000 1,643,000 OTHER 3547/3818 Commercial Programs Investments ,000 50, , , ,000 50, Snow Removal Program 60 3,249, ,000 3,999, , ,000 3,799, Vital Records Protection System Study , , , Homeland Security Hardening Protection FG 835, , , , Environmental Compliance Program (*4866) , , , , , Planning/Programming Studies (2006) , , , , ,

147 CAPITAL, OPERATING & MAINTENANCE INVESTMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT PROJECTED PROJECTED ESTIMATED PROJ CARRY-OVER 2008 CARRY-OVER & EXPENDITURES NUM DESCRIPTION FUND BALANCE PROGRAM 2008 PROGRAM CONTINUED OTHER 3771 Automated Vehicle ID-System Development , , , , Airport Access Control Systems , , , Fence Line Modification - Stallion Branch & Gate ,000 78,000 78, Authority Network Security System Upgrade , , , Equipment & Facility Repair Maintenance Projects 60 1,609,000 1,609,000 1,609, Consolidated Function (CF) Capital Equipment 60 36,000 36,000 36, CF - Information Technology Equipment , , , Energy Assistance Program , , , Business Process Reengineering 60 2,455, ,000 3,080,000 2,455, , Payment Card Industry Compliance , , , , Gate 317 Security Improvements , , , , , Airport Access Control Systems , , ,000 76, Operation Command Center Modifications , , , , , , Equipment & Facility Repair Projects 60 3,000,000 3,000,000 1,600,000 1,300, , Information Technology Equipment 60 60,000 60,000 60, Public Safety - Capital Equipment , , , Automated Vehicle ID-System Definition Study , , ,000 58, Information Technology Systems Enhancements , , , , Cardreaders Installation , , , Security , , , Equipment & Facility Repair Projects 60 3,011,500 3,011,500 1,200,000 1,811, Arts Program , , , Capital Equipment - Public Safety , , , Tunnel Firefighting Vehicle (New) , , , ARFF Vehicle (Replacement) 60 1,200,000 1,200,000 1,200, Pumper Truck (Replacement) , , , Ambulance/Medic Unit , , ,000 16,096,400 8,880,700 24,977,100 9,421,200 8,049,200 7,506,700 Summary of Funding Source Capital Fund 60 34,556,300 19,550,700 54,107,000 20,339,700 21,783,200 11,984,100 Federal Grant FG 835, , , ,600 Letter of Intent Discretionary Grant LOI Commonwealth of Virginia State Grant CVG Subtotal Dulles Airport $35,391,900 $19,550,700 $54,942,600 $20,539,700 $21,783,200 $12,619,700 FUND: Fund 60 - Capital Fund; FG - Federal Grant; LOI - Letter of Intent Discretionary Grant; and CVG - Commonwealth of Virginia State Grant 137

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149 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM The amount shown with the project description is the total current cost estimate for the project. CONSOLIDATED FUNCTIONS Other 2007 Equipment - Engineering Copier, $25,000. Various outdated copier/printer machines will be replaced Equipment - Engineering Vehicles, $80,000. Three vehicles for the Office of Engineering will be replaced Equipment - Information Technology Equipment, $462,500. The funding supports IT requirements for Hangar 5 renovation, uninterrupted power source upgrade at the Corporate Office Building, and the replacement of various servers. AAAE Sponsorship, $675,000. The Authority hosted the annual American Association of Airport Executives Conference (AAAE) in June Compensation Studies, $1,500,000. Various segments of the organization s workforce pay structures and other compensation will be evaluated and potentially adjusted. Finance Office Hangar 11 - Furniture and Equipment Fit-out, $105,000. The project involves furnishing the new staff office spaces located in Hangar 11 for the Office of Finance. Revenue Collection Systems-Finance, $70,000. This funding consists of two project initiatives. The first project entails the initial set-up of PASSUR for direct billing system of landing fees to the airlines. It provides accurate billings of landing fees (i.e., correct certificated weight) and improves the speed and efficiency of landing fee collection. The second project is for Electronic Collection Activity Tracking System, which will automate the record keeping of all account and administrative activities. It provides an electronic tracking and reporting system for revenue management collection activities. Lektriever Filing System - Engineering, $15,000. The current lektriever filing system has reached its useful life. Funding will purchase a replacement of an outdated inefficient filing system. Lektriever Filing System - Audit, $30,000. The current lektriever filing system has reached its useful life. Funding will purchase a replacement of an outdated inefficient filing system. Public Safety Radio Replacements, $97,400. Funds will be used to purchase replacements radios for the Police and Fire Departments. Replacement Vehicles - Engineering, $117,000. Vehicles for the Office of Engineering will be replaced. New Vehicles - Radio & Wireless, $90,000. Vehicles for the radio and wireless will be purchased. Organization Planning and Programming, $700,000. Review various components of the organization and implement changes where needed Public Safety Capital Equipment, $354,000. The project funds the purchase of replacement police vehicles in support of Consolidated Function Office Public Safety Operation. Dulles Toll Road/Rail Program, $14,600,000. This project funds activity related to the acquisition and operation of the Toll Road and the construction of rail to Dulles. These costs include legal, financial and feasibility analysis, preliminary engineering planning studies, and other due diligence activities. 139

150 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM The amount shown with the project description is the total current cost estimate for the project. RONALD REAGAN WASHINGTON NATIONAL AIRPORT Roads Roadway Modification - Garage B&C Entry Lanes, $200,000. This project will modify the entry lanes to the bus shelters at Garages B and C, as well as on the west entrance road to accommodate the new longer buses. Buildings Rehabilitate North Hangars, $1,481,000. Portions of the second floor office area in Hangars 11/12 need to be modernized and rehabilitated. This project will provide heating/cooling distribution, elevator access to upper floors, new wall coverings, new floor coverings, office fit-out for Authority tenants, and other improvements. The finished office areas will be in compliance with the Americans with Disabilities Act and current building code regulations. In addition, this project will install fire alarm devices and smoke detectors in newly created office spaces. Facility Repairs, $2,360,000. This funding supports facility repairs in the Parking Garage "A" Structure, Taxi Holding Facility Structure, and other facilities. Repairs need to be made to concrete slabs, columns, beams, precast panels, expansion joints and retaining walls. Other repairs include improvements to the Electronic Room's ceiling and improvements to the terrazzo floor in Terminal B/C. These improvements will eliminate extensive and costly repairs in the future. Repair Baggage Belt Systems, $615,000. This project is part of a phased program to rehabilitate the baggage belt systems in the passenger terminals. New work includes replacement of motors, motor mount brackets and removing obstructions that interfere with preventative maintenance. Terminal B/C Structural Paint, $450,000. This project is parts of phased program to clean, rehabilitates, and re-paint steel at Terminal B/C. The exterior steel of Terminal B/C is an important part of the architecture at Reagan National and needs to be periodically cleaned and painted to maintain the Airport's appearance. North Hangar Line Heat, $250,000. This project will fund for the purchase and installation of a boiler to supply heat to Hangar 11 and 12. West Building Mechanical & Electrical Modifications, $500,000. This project supports the necessary infrastructure rehabilitation in the West Building. The work includes the rehabilitation of the air-conditioning system; replace deteriorated roofing, and making other essential repairs to extend the useful life of the building by approximately 10 years. Facility Repairs - Terminal B/C Restrooms, $1,595,000. These improvements to the restrooms in Terminal B/C will eliminate the need for more extensive and costly repairs in the future. Replace Roofing - Terminal B/C Roof Drains & Dome Valleys, $200,000. This project will repair and rehabilitate roofs that have reached the end of their useful life. New work will include roof drain replacement on Terminal B/C domes and canopies, and could also provide for the design of the Boiler House roof. Fixed Cameras at Blue Doors Access to AOA, $550,000. Various doors that have direct access to the AOA will have security cameras installed. Hangar 5 Vehicle Bay Installation & Office Renovation $175,000. This project will design and construct a vehicle work-bay area in Hangar 5. The bay will enable the installation of radios and other specialized electronic communications equipment in vehicles. Additionally, the new offices for the Radio Department will be designed for the area vacated by Police Dispatch when the Consolidated Communications Center is constructed. 140

151 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM Moving Walkway, $755,000. Pallets and handrails on four moving walkways on both pedestrian bridges to Metro will be replaced. Handrails will also be replaced on moving walkways in the pedestrian tunnel between Terminal A and Garage A. Replace Air Conditioning Roof Top Units-Hangar 11/12/Terminal, $150,000. Three failing air conditioning Roof Top Units (RTU) located on Hangar 11 and 12 and in Terminal A will be replaced. The existing systems have exceeded their useful life and no longer able to meet the growing needs of the space. Replace Roofing, $1,150,000. This project is part of a recurring program to repair and rehabilitate facility roofs that have reached the end of their useful life. New work will include the design of the boiler house roof and the final studies and design of repairs for the Terminal B/C roof. Rehabilitate North Hangars Fire Alarm System H11/12, $50,000. This project will install a fire alarm system on the second floor office areas of Hangars 11 and 12. Operations Computer Room Rehabilitation, $420,000. Due to the increasing number of network components needed to support Reagan National operations the existing space will need to be expanded and rehabilitated to accommodate for future growth and function of this area. This project will install a dry chemical fire suppression system, upgrade the existing electrical power service and A/C system, and purchase a new UPS system. Replace Roofing - Reagan National Air Traffic Control Tower (ATCT), $475,000. The recent removal of the airport surface detection equipment (ASDE) from the ATCT has caused roof damage and created numerous roof leaks. This project will replace the leaking roof on the catwalk area that is directly above the air traffic controller work area. Rehabilitation of Sanitary Force Main, $450,000. This project will provide a slip-lining rehabilitation on the existing main 16-inch sanitary force main that transports all the sewage from Reagan National to Arlington County. The funding allocation provides $80,000 for study/design and $370,000 for the construction. Restroom Rehabilitation - Taxi Parking Structure, $150,000. This project will fund for the rehabilitation of restrooms in the taxi parking structure. Facility Start-up - Consolidated Communication Center, $250,000. These funds will provide the resources necessary to accomplish the transition from a newly constructed facility to an operational one. Facility Start-up - Aircraft Rescue Fire Fighting Station, $250,000. These funds will provide the resources necessary to accomplish the transition from a newly constructed facility to an operational one. Facility Start-up - Consolidated Office Building, $100,000. These funds will provide the resources necessary to accomplish the transition from a newly constructed facility to an operational one. Airfield Facilities Runway Safety Area (RSA) Evaluation Analysis, $190,000. This project will evaluate the current conditions of the RSA for each runway in terms of soft ground, improper grades, infrangible objects or other items reviewed in Part 139 certification inspections and identify improvements needed to meet the RSA standard. Taxiway J&K Repairs & Replace Concrete Taxiway B, $2,950,000. The existing airfield pavements deteriorate due to aircraft traffic and weathering requiring repair and replacement of airfield pavements to ensure these areas remain safe and structurally sound. Areas of concentration will be on Taxiway "Juliet," "Kilo," and the taxilane north of Terminal C. Pavement Marking & Signage, $300,000. This project will fund the re-striping of taxiway pavement markings and the replacement of taxiway panel signs in an effort to comply with FAA requirements. 141

152 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM Pavement Management System - Airside, $350,000. The Pavement Management System provides recurring and federally-required conditions assessment for the airside pavements. This project will fund the data collection for the Pavement Management System. Parking Facilities Frequent Parker Program, $350,000. This project is linked to the Authority's business plan for Smart Tag and EZ-Pass Utilization, by installing the necessary hardware and software to enable frequent customers to enter and exit the public parking facilities expeditiously. Utility Systems Radio Communication Systems, $810,000. The 800MHz radio communications system requires equipment upgrades, software/hardware upgrades, and system support to function efficiently and reliably. This project will purchase control and diagnostic equipment, test equipment, battery management equipment, technical support, and other equipment and services. Telecommunications Equipment, $575,000. This project will rehabilitate existing telecommunication equipment across the Airport. Work includes replacement of aged telecommunication cable, improvements to the Airport Communication System, switch upgrades, airside gate telephone support, and other improvements. Airport Communication Telephony System Upgrade, $300,000. This project upgrades telephony systems to provide reliable services to tenants and departments. Work includes includes implementing SONET nodes and enhancements, telephone switch gear and software/hardware, and other improvements. Steam Lines Repair, $200,000. This project repairs the deteriorated underground steam lines between Hangar 2 and the East/West/Shops/Warehouse complex. Electronic Information Modification, $1,950,000. This project upgrades several electronic systems in Terminal B/C that are no longer supported by the manufacturer or no longer under warranty. These systems include electronics used to operate the MUFIDS, public address system, and the master clock. Additionally, the funds provide upgrades to several electronic systems in Terminal B/C that are no longer supported by the manufacturer and are no longer under warranty. This project will fund for the purchase of 437 LCD monitors to replace the existing CRT in the public and gate areas and Digital Data Controllers (DDC). Radio Life Cycle, $1,050,000. Key components of the 800MHz radio system (i.e., hardware and software) are reaching their useful life. This project will upgrade software and hardware components so that the system remains reliable. Additionally, the essential upgrade ensures the system will be covered by manufacturer support services. 800 MHz Radios, $118,000. This project will purchase mobile and portable 800MHz radios to ensure that airport staff maintains communication while fulfilling their responsibilities in the workplace. Radio Communication Fiber Link, $175,000. This project establishes a fiber link between the Authority's 800 MHz radio system and the Arlington County public safety system so that county mutual aid responders are able to communicate within the terminal areas. The existing county signal does not penetrate into the terminals. Industrial Waste Line and Oil Water Separators, $125,000. This project will replace two above ground oil water separators located in the south area with an underground oil water separator to allow expansion of the Economy Parking Lot. Utility Meter Automation, $100,000. This project will replace manual processing with an automated utility metering system at the Airport and tenant facilities. The project includes a study, purchase of meter 142

153 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM equipment and software, as well as partial implementation. Radio Alarms/Controls Remote Assessment, $40,000. Purchase of software/hardware system that would enable the Radio Department technicians to access radio network systems and assess alarm control troubles remotely. Global Information System/Global Positioning System(GIS/GPS), $100,000. This project funds IT infrastructure requirements needed to support the airport's GIS/GPS initiative. Improvements include purchase of software and hardware as needed. Public Safety Command Vehicle Radios, $65,000. Project will upgrade radio equipment in the mobile Public Safety Command Vehicle. Voice Mail System & Voice Over Internet Protocol, $165,000. This project will rehabilitate existing telecommunication equipment across the Airport. Work includes replacement of aged telecommunication cable, improvements to the Airport Communication System, switch upgrades, airside gate telephone support, and other improvements. The new system provides full voice messaging services for the airport as well as expanded services including voice commands, text-to-speech, desktop PC client / voic interface, and other functionality. Voice over Internet Protocol will be inherent to the new system. Radio Projects & Miscellaneous Upgrades, $315,000. The radio communications system requires equipment upgrades, software/hardware upgrades, and system support to function efficiently and reliably. Communications Facilities and Equipment System Integration, $648,000. Communication facilities, equipment, and system integration are needed to support the Airport s communication requirements. This includes construction of ductbanks, purchase of switches, connectivity for data transmission, premises distribution systems, and other equipment as identified in the comprehensive communications plan. Other Automated Vehicle ID - Taxicabs, $250,000. This project supports the continued implementation of the automated vehicle identification system for taxicabs that enables the Airport to establish an electronic credit/debit system. The purchase of the equipment includes computer hardware/software, identification readers, vehicle-mounted transponders, entrance/exit lane readers, and other required peripherals. Commercial Program Investment, $3,070,000. This project will fund commercial program initiatives that help increase the value of Airport facilities. Some initiatives include: retail, food and beverage facility improvements, installation of commercial signage, architectural services to review concessionaires, and designs for store fronts and store layouts, and other improvements that are part of the initiative. This project will also provide funds to meet contractual obligations to food and beverage management companies. Security Study & Infrastructure Improvements, $13,500,000. This project provides continued security enhancements and improvements of the airport s facilities and area perimeters such as landside perimeter security, ground-based radar intrusion detection, explosive proof trash cans, design for ARFF and K gates. Additionally, this funds new card readers and lock sets for the hangar line and connection to the Fire Alarm System, APC panel upgrades. Capital Equipment and Facility Repair Projects, $3,300,000. These funds will be used to purchase critical capital equipment and complete facility repair projects. Snow Removal Program, $1,463,400. This project provides funding for snow removal requirements, excluding personnel related costs, during extraordinary snow events. Common-Use-Self-Service (CUSS) Kiosk Study, $100,000. This project will fund a study that will describe the benefits and liabilities of implementing a 143

154 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM program to install Common-Use-Self-Service kiosk. The Study will also present available system providers, kiosk locations, and the cost of implementation to the Authority and airlines, and the ability to capture fees for services provided airlines by the kiosk. Vital Records Protection System, $225,000. The vital records program protects against business disruption during unforeseen events. The additional program funds the implementation of Phase 1 of the recommended study. Homeland Security Hardening Protection, $1,337,400. This project provides for equipment, training, and exercises related to securing the Airports. The funds come from the Department of the Homeland Security and administered through the Virginia Department of Emergency Management. Environmental Compliance Program, $712,000. These funds will be used to continue an ongoing environmental management program. The statutory requirements, which are regulated by federal and state agencies, stipulate that the Authority permit, update, monitor and assess environmental impacts. The following compliance programs are included: water quality, deicing/anti-icing runoff, pollution prevention, underground/aboveground storage tanks, and air quality. Statue Site Preparation, $125,000. This project will fund the design and construction of the foundation, the preparation and finishing of the site, and the installation of a Ronald Reagan commemorative statue Equipment, Facility Repair and Maintenance Projects, $1,750,000. This funding supports the Airport's capital and operating programs. The program includes the purchase of required maintenance equipment, as well as payment of major and minor facility repairs CF - Information Technology Equipment, $358,200. Funding supports the various information systems and technology equipment purchases Public Safety Capital Equipment - Reagan National, $753,000. This project funds various replacements of capital equipment including police vehicles and medical units in support of Reagan National s Public Safety operation Public Safety Capital Equipment - Consolidated Functions, $443,000. This project funds various replacements of capital equipment including police vehicles in support of Consolidated Function Offices' Public Safety operation. Energy Assistance Program, $100,000. The impact of unforeseen natural disasters resulted in higher utility and fuel costs. This funding will provide contingency in the event the Operation and Maintenance Budget is not sufficient. Business Process Reengineering, $4,075,000. This project supports the Authority efforts in Business Process Reengineering (BPR) directly related to Enterprise Resource Planning (ERP) program. BPR will review the analysis and design of workflows within and between the organizations. Where necessary, certain workflows and business process will be modified to achieve improvement in quality, time management, and cost. Concept/Design Exhibit of Dulles Train System, $150,000. This project provides conceptualize and design consultation of the Dulles Train System. The work involves site visits, design drawings, and installation of large scale lighted displays. Payment Card Industry (PCI) Compliance, $300,000. This project upgrades the Authority network components that are used by the Authority and its tenants in electronic processing of credit card transactions. The credit card industry has established new regulatory data security standards that must be met to help protect merchants and cardholder data. 144

155 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM Security Study & Infrastructure Improvements (Landside Enhancement), $350,000. The 2007 project funds the Landside Security Enhancements for eight hydraulic vehicle barrier gates, fence-line cabling, and security cameras Equipment, Facility Repair and Maintenance Projects, $1,500,000. This funding supports the Airport's capital and operating programs. The program includes the purchase of required maintenance equipment and pay for major and minor facility repairs Public Safety - Capital Equipment, $79,000. Purchase of three replacement police vehicles in support of Reagan National s Public Safety operation. Environmental Compliance Program, $712,000. These funds will be used to continue an ongoing environmental management program. The statutory requirements, which are regulated by federal and state agencies, stipulate that the Authority permit, update, monitor and assess environmental impacts. The following compliance programs are included: water quality, deicing/anti-icing runoff, pollution prevention, underground/aboveground storage tanks, and air quality. Security Video Matrix Switch, $750,000. As new buildings are completed and the secured domain is expanded, more security cameras will be needed. This project will replace the existing analog to digital controller switch that controls and distributes the video feeds from all of Reagan National s security surveillance cameras. Security, $250,000. This project funds operational security systems. Arts Program, $125,000. This project will provide the establishment of the Arts Master Plan and Archival Program for Reagan National Equipment, Facility Repair and Maintenance Projects, $1,522,000. This funding supports the airport's capital and operating programs. The program includes the purchase of required maintenance equipment and pay for major and minor facility repairs Public Safety Capital Equipment - Reagan National, $127,000. This project funds various replacements of capital equipment including police vehicles and medical units in support of Reagan National s Public Safety operation. Planning/Programming Studies, $100,000. This project provides consultant support to the office of Engineering for various data collection and studies associated with airport change. Information Technology Systems Enhancements, $600,000. This project supports the various information systems and technology equipment purchases to maintain and develop a safe, secure, and efficient information technology infrastructure. CrashNet System Replacement, $350,000. The existing analog CrashNet system installed in 1996 has been discontinued by the manufacturer and is no longer supported. The new system will be installed over a private internet protocol (IP) network allowing for better airfield communication during emergency situations. 145

156 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM The amount shown with the project description is the total current cost estimate for the project. WASHINGTON DULLES INTERNATIONAL AIRPORT Roads Rehabilitate/Repair Access Highway, $2,434,000. These funds will be used to repair the Access Highway Bridges. Repairs include joint/spall repair, painting, and other improvements that will enhance the integrity of the structures. In 2008, the effort will concentrate on the rehabilitation of the expansion joint on the westbound Horsepen Bridge.0 Landside Roadway Rehabilitation, $2,050,000. This project will provide preventive and corrective maintenance on the landside roadway system. The project work includes the rehabilitation of Autopilot Drive, the resurfacing of the Cargo Area Parking Lots, and other maintenance work. Access Highway Bridge (Parking Plaza, Scott Run, Horsepen Run), $400,000. These funds will be used to repair the Access Highway Bridges. Repairs include joint/spall repair, painting, and other improvements that will enhance the integrity of the structures. In 2006, the effort will concentrate on Washington Dulles Ramp over Parking Cashier Plaza, Scott run Culvert, Horsepen Run Bridge (WBL), Difficult Run Bridge (WBL), and Hunter Mill Road Bridge (EBL). Buildings Rehabilitate Cargo Buildings, $200,000. This project will repair and rehabilitate Cargo Buildings 1, 2 and 3. The repairs will include improvements in the base building, mechanical/electrical equipment, exterior doors, stairs and siding, dock lifts, exterior painting, and other improvements. Baggage Belt Rehabilitation, $600,000. This project provides the rehabilitation of baggage belt systems in the International Arrivals Buildings (IAB), followed as needed in later years by the rehabilitation of baggage systems in the Main Terminal. Additional funds added to rehabilitate the inbound claim devices 3 and 4 and conditions assessment for outbound belt devices on Kiosk 1 and 4. Paint Spray Building Fire Suppression, $200,000. Project entails the design and construction of a new water-based fire suppression system that is appropriate for the size of the facility and the activities that take place within the paint spray building. Reroof Buildings, $403,600. This project includes replacing deteriorated or damaged roofing on the Grounds Equipment Storage building, the South Equipment Storage building, and the Fertilizer Storage building. Authority-Owned Jet Bridge Modifications, $500,000. Modifications to Authority-owned gates, gate areas, and jet bridges on Concourses B and D, and the Z Gates will be accomplished. Sprinkler System Modification Concourse B, $500,000. This project will repair the exterior fire suppression system at Concourse B. Repairs will include replacing the fin-tube system and adding monitoring system to alert personnel when overhang becomes to cold. Transfer Baggage Holding Facility, $400,000. Due to congestion in the SE baggage basement, this project would construct a 20,000 square foot staging facility to transfer baggage. Airline Space Relocation, $460,000. This project will provide funding for the Authority to relocate airline tenants and/or their operational support space to accommodate new service or to make the best use of their facilities. Baggage Belt Replacement (Claims 3&4), $200,000. This project provides the rehabilitation of baggage belt systems in the Main Terminal and the IAB. This project will fund the rehabilitation of inbound claim devices 3&4 and include the replacement of system components which are subject to wear and those that 146

157 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM have reached the end of their useful life. Inbound claim devices 3&4 were put on-line in Engineering and Maintenance Relocation, $500,000. This project will relocate the office functions of the Engineering & Maintenance Department (E&M) to the Authority-owned JP Morgan Chase Building. Ticket Counter Light-Emitting Diode (LED) Replacement, $240,000. The existing ticket counter LEDs at United Airlines Kiosk 4 will be replaced. ATC Space Conversion-Authority Use & Pass and ID, $300,000. The mobile lounge manager will be relocated from operations area in Concourse B to the Midfield Terminal. This project will also fund for the relocation of the Pass & ID offices. New Facility Start-up, $3,200,000. These funds will provide the resources necessary to accomplish the integration of newly constructed facilities into existing operational systems. Transportation Security Agency (TSA) Offices, $240,000. This project relates to TSA facility fit-out for the two side-by-side Lost and Found Offices in the Main Terminal. Conference Room Improvements - Main Terminal, $250,000. The Main Terminal Conference Rooms A&B will be renovated. The work includes installation of better lighting, audio-visual equipment, sound separators, and furnishings. Fueling Station Improvements - Shop 2, $400,000. The existing canopy over the fuel tanks will be demolished and replaced with a new canopy and catwalks. Buy-out of Airports Authority Permitted Space, $800,000. Funds the relocation of the displaced airline tenants to accommodate support services at the new gate areas. Buy-out and Enhancement of Taxicab Lounge and Operations Bldg, $600,000. This project will provide funding to buy-out the unamortized amount of the taxicab lounge and operations building from its current operator and also fund various improvements to this facility. Restroom Renovation Program in Main Terminal (Design), $100,000. This multi-year project provides for the phased rehabilitation of 12 public restrooms in the Main Terminal. Improvements to the Supplemental Radiating Systems (SRS), $300,000. This project funds for the maintenance and preservation of the SRS systems for both airport campuses. This project will install SRS systems in the four main office buildings on Aviation Drive to meet Public Safety radio communications standards. Washington Dulles Pedestrian Walkback Tunnel Modifications $700,000. This project completes the installation of a membrane lining system for the tunnel and installs four additional de-watering wells. Airfield Facilities Aircraft Guidance System, $550,000. The Federal Aviation Administration recently revised requirements for airfield surface movement guidance control. This project will enable the Airport to comply with certification by installing taxiway center-line lighting and other electrical/electronic aids on taxiways designated for aircraft movement during low visibility conditions. Airfield Pavement Repairs, $19,244,000. This project supports the recurring airfield pavement repairs. Work includes joint resealing, spall repair, crack sealing, partial depth repairs, replacing concrete panel, and other major repair work. This year's work concentrates on resealing shoulders on Runway 1L/19R and associated high-speed taxiways, and joint replacement on Taxilanes "Delta" and "Echo." Rehabilitate Mobile Lounge Road/Apron, $1,300,000. The project comprises major work repairs and replacements of deteriorated pavement panels adjacent 147

158 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM to the Main Terminal mobile lounge docking stations and access roads. The necessary repair or rehabilitation work ensures the safety and reliability of the roads and aprons for mobile lounges and planemates. Airfield Storm Sewer Inlet Erosion Repairs, $100,000. This project will fund a conditions investigation of the airfield storm sewer system and provide for limited critical work near Runway coincident with its reconstruction. Airside Concrete Service Road $450,000. This project will replace the deteriorated airside vehicle service roads to provide a smooth and functional riding surface for users. This multiphase project will begin by replacing concrete slabs from Gate 38 to south side of Engineering and Maintenance Building. Taxilane A, B, & C Trench Drain/Concrete Repairs, $1,000,000. This multi-year project will make repairs/replace deteriorated and damaged sections of storm water trench drains and surrounding concrete on Taxilanes A, B, and C. Parking Facilities Parking Lot Repairs, $200,000. This project will provide preventive and corrective maintenance on all surface parking lots. This project is completed; and the remaining funds are reprogrammed to fund the BPR project. Fire Alarm System Repairs Daily Garages, $500,000. Various components of the Fire Alarm System in Daily Garages 1 and 2, as well as connect system to the Fire Department will be replaced. Utility Systems Radio Communication Systems, $1,167,000. The 800MHz radio communications system requires equipment upgrades, software/hardware upgrades, and system support so that the system can function efficiently and reliably. This project will purchase control and diagnostic equipment, test equipment, battery management equipment, technical support, and other equipment and services. Sanitary Sewer System Rehabilitation, $76,700. Some of the existing sanitary sewer lines and structures are more than 35 years old. This project will rehabilitate sections that are cracked, structurally unsound, or obstructed by debris. This project is part of a multiyear program to rehabilitate the Airport's entire sanitary sewer system. The existing pipes have deteriorated allowing for more filtration, which leads to system blockage and sink holes. This project will replace 8,100 linear feet of pipe along Aviation and Autopilot Drives. Comprehensive Utility Survey Update, $1,150,000. This project relates to a utility survey of the entire Airport. The survey will identify the location and type of all sewer, sanitary sewer, electrical, and water lines. Standby Power, Terminal Buildings, $363,000. This project will install new standby power generators and distribution equipment that will serve the Main Terminal and Concourses B, C and D. The standby power will have the capability of supporting airline functions, security gate check in, FIDS/BIDS, security doors, designated elevators, telephone systems and other loads. Global Positioning System (GPS) Field Data, $400,000. This project provides a collection of GPS data that will be used for future implementation of Geographical Information System databases. Federal Compliance Law, $100,000. This project will ensure radio communication systems at the airports maintain compliance with FCC regulations. Additionally, this project will purchase test equipment needed to comply with FCC and OSHA regulations. HVAC Renovations to Telephone/Weather Building, $460,000. This project will increase the HVAC capacity to allow for better cooling of computer, weather and airport communication systems. This building, which accommodates both Verizon and NOAA, was one of the first buildings built at 148

159 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM Washington Dulles and was not designed to handle the existing heat loads from the various electrical components. Radios Life Cycle, $1,050,000. Key components of the 800MHz radio system (i.e., hardware and software) are reaching their useful life. This project will upgrade software and hardware components so that the system remains reliable. Additionally, the essential upgrade ensures the system will be covered by manufacturer support services. Radio System Security Initiative, $107,500. This security system initiative provides encryption of radio communications to maintain privacy and enhance information security and enable the Radio Services and Wireless Systems department to address system alerts in a timely and efficient manner. Electrical Unit Substation Replacement, $1,500,000. The project will replace substations at Cargo 1,2,3 and Piedmont Hawthorne, fund study for North/South power connection, replace wood poles w/ metal poles at North Switching Station, and construct shelter for Fuel Farm Substation. Replace Electrical Feeder Laterals, $1,650,000. The new feeder will increase capacity and replace old cables to serve current and future tenants. The project will replace portions of the existing main electrical feeder and controls serving the loading dock on Windsock Drive, Aviation Drive, and Autopilot Drive. Utility Meter Automation, $200,000. This project will replace manual processing with an automated utility metering system at the airport and tenant facilities. The project includes a study, purchase of meter equipment and software, as well as partial implementation. Telephone Cable Plant, $455,000. This project will provide abandoned cable plant removal from critical duct banks and cable racking in manholes to facilitate cable runs. The project will also include testing and rehabilitation of underground copper and fiber runs in accordance with the cable plan maintenance program. This project is partially funded from Telecom Cable Plant Improvements & Additions. Telecom Equipment Fiber Copper Cabling SONET/ACS, $100,000. This project will provide fiber optic infrastructure as identified and required. This infrastructure will in part complete the SONET Loop. This project is partially funded from Telecommunications Equipment, project number GIS/GPS Support System, $100,000. This project funds IT infrastructure requirements needed to support the airport's GIS/GPS initiative. Improvements include purchase of software and hardware as needed. Automatic Control of Electrical Loads $120,000. Automatic power monitors and controls (e.g., shunt trip mechanisms) of various electrical loads throughout the airport will be installed. The new electrical controls will be connected to the existing control system in the Exterior Electrical Shop. The 2007 funding supplements the incremental work on several substations beginning with the Main Terminal Building and Concourse A and B. Public Safety Command Vehicle Radios, $110,000. The radio equipment in the mobile Public Safety Command Vehicle will be upgraded. HVAC Improvements (Shop 1 & 2 and Metal Shop) $500,000. The HVAC equipment salvaged from the Concourse G will be relocated and installed at Shops 1, 2, and the Metal Shop. Electrical Unit Substation Rehabilitation, $750,000. This project encompasses the rehabilitation of the electrical unit substation located near the old fuel farm. The existing system is 42 years old and replacement parts are no longer made. This substation supplies the power to the facility that controls the flow of water onto the Airport and the Airport beacon. Telecommunications Equipment, $675,000. This project funding relates to old 3546, which was capitalized and closed by Accounting. A new project number 3819 has to be reestablished in order to 149

160 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM continue the rehabilitation of existing telecommunication equipment across the Airport. E-Line Sanitary Sewer System Rehabilitation, $200,000. Some of the existing sanitary sewer lines and structures are more than 35 years old. This project will rehabilitate sections that are cracked, structurally unsound, or obstructed by debris. This project is part of a multi-year program to rehabilitate the Airport s entire sanitary sewer system. The existing pipes have deteriorated allowing for more filtration, which leads to system blockage and sink holes. Other Commercial Program Investments, $1,417,000. This project will fund commercial program initiatives that help increase the value of Airport facilities. Some of the initiatives include: retail, food and beverage facility improvements, installation of commercial signage, purchase of advertising dioramas, purchase of sit down pay phone booths, and other initiatives. Snow Removal Program, $9,594,600. This project provides funding for snow removal requirements, excluding personnel related costs, during extraordinary snow events. Vital Records Protection System, $225,000. The vital records program protects against business disruption during unforeseen events. The additional program funds the implementation of Phase 1 of the recommended study. Homeland Security Hardening Protection, $1,372,500. This project provides for equipment, training, and exercises related to securing the Airports. The funds come from the Department of the Homeland Security and administered through the Virginia Department of Emergency Management. Environmental Compliance Program, $540,000. These funds will be used to continue an environmental management program in compliance with Federal and State regulatory and statutory requirements. The environmental compliance programs include water quality, deicing/anti-icing runoff, pollution prevention, underground/aboveground storage tanks, and air quality. Planning/Programming Studies, $250,000. This project provides consultant support to the office of Engineering for various data collection and studies associated with airport change. Automated Vehicle ID - System Development, $400,000. This project will provide the system development, hardware and software for AVI to be implemented with CCP projects on Ariane Way and the commercial curb. Airport Access Control Systems, $250,000. In compliance with TSA Part 49 CFR , Airport Security-Access Control System, this project is designated to replace the key control access at various locations throughout the Airport. Fence Line Modification - Stallion Branch & Gate 208, $100,000. The existing fence line is frequently washed out by storms, which could compromise perimeter security. This project will redesign and construct a new fence that improves the flow of rising waters along Stallion Branch. Authority Network Security System Upgrade, $435,000. This project will study, acquire, and implement network security upgrades to protect the Authority's systems and data to ensure system availability and integrity. The upgrades include system management tools, technical monitoring, and detection and control tools. The security capabilities include internal firewalls, log and internet access monitoring Equipment, Facility Repair and Maintenance Projects, $2,750,000. This funding supports the airport's capital and operating programs. The program includes the purchase of required maintenance equipment, as well as payment of major and minor facility repairs. 150

161 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM 2006 Consolidated Functions (CF) Capital Equipment, $99,000. This funding will pay for the replacement of the capital equipment located at the Consolidated Offices CF - Information Technology Equipment, $358,200. Funding supports the various information systems and technology equipment purchases. Energy Assistance Program, $100,000. The impact of unforeseen natural disasters resulted in higher utility and fuel costs. This funding will provide contingency in the event the Operation and Maintenance Budget is not sufficient. Business Process Reengineering, $4,075,000. This project supports the Authority efforts in Business Process Reengineering (BPR) directly related to Enterprise Resource Planning (ERP) program. BPR will review the analysis and design of workflows within and between the organizations. Where necessary, certain workflows and business process will be modified to achieve improvement in quality, time management, and cost. Payment Card Industry Compliance $300,000. This project upgrades Authority network components that are used by the Authority and its tenants in electronic processing of credit card transactions. The credit card industry has established new regulatory data security standards that must be met to help protect merchants and cardholder data. Gate 317 Security Improvements $900,000. After the security improvement evaluation study at Gate 317, various physical security enhancements such as bollards, pop-up barriers, and arrestor cables in the adjacent perimeter fence will be installed. Airport Access Control Systems (Lock/Key Replacement), $190,000. All keys at the Airport will be replaced in compliance with TSA Part 49 CFR (Airport Security-Access Control Systems) regulation. Operation Command Center Modifications $530,000. The existing space in the operations building, located in Concourse B will be reconfigured to accommodate new systems and equipment Capital Equipment and Facility Repair Projects, $3,000,000. These funds will be used to fund critical facility projects and equipment Equipment - Information Technology Equipment, $60,000. Various servers will be replaced Public Safety Capital Equipment, $323,000. The funds will purchase replacement capital equipment including police vehicles and medical units in support of Washington Dulles Public Safety operation. Automated Vehicle ID - System Definition Study, $550,000. This study will identify operational expansion of the Washington Dulles Concession vehicle monitoring operation. It will consider integrated operations with projects at Reagan National, the Fastoll program on the local highways, other Virginia Department of Transportation initiatives, and with the Federal Highway Administration's Intelligent Transportation Systems (ITS) study. Information Technology Systems Enhancements, $600,000. Funding supports the various information systems and technology equipment purchases to maintain and develop a safe, secure, and efficient information technology infrastructure. Cardreader Installation, $300,000. This multi-year project will install 140 cardreaders on all mechanical, electrical and communication rooms. The completion of this project will control the access to the rooms for safety and security reasons by eliminating the issuance of keys, eliminating code violations due to materials left by contractors blocking electric and service panels, and eliminating unauthorized use of these spaces as break rooms. Funding in FY08 will fund for the installation of approximately 60 cardreader units. Security, $250,000. This project funds operational security systems. 151

162 CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM 2008 Capital Equipment and Facility Repair Projects, $3,011,500. These funds will be used to fund critical facility projects and equipment. Arts Program, $150,000. This project will provide the establishment of the Arts Master Plan and Archival Program for Washington Dulles Public Safety Capital Equipment, $314,200. The funds will purchase replacement capital equipment in support of Washington Dulles Public Safety operation. Tunnel Firefighting Vehicle, $150,000. The funds will purchase a new tunnel firefighting vehicle in support of Washington Dulles Automated People Mover System. ARFF Vehicle, $1,200,000. This equipment will replace the 1989 ARFF vehicle, Foam 356. Pumper Truck, $600,000. This equipment will replace the 1990 Pumper, Engine 327. Ambulance/Medic Unit, $600,000. This unit will replace the 2000 Washington Dulles Reserve Medic Unit M

163 CAPITAL CONSTRUCTION PROGRAM The Authority s Master Plans The Master Plan for each Airport establishes the framework for the CCP and may be amended from time to time by the Authority. All major improvements to the Airports must be in accordance with the approved Master Plan for each Airport. The Master Plans adopted by the Authority s Board include the Airports Land Use Plans and the Airport Layout Plans (the ALPs ). The ALPs have been approved by the FAA, and any future amendments also must be approved by the FAA. The ALPs are required by the FAA to show all existing and proposed improvements. Reagan National The Master Plan for Reagan National became effective on April 15, 1988, and has been amended periodically. All major elements of the Master Plan at Reagan National have been completed with the exception of renovation of Terminal A. Washington Dulles The Master Plan for Washington Dulles was adopted and approved by the FAA prior to the Lease Effective Date and has been amended periodically. The Master Plan for Washington Dulles contemplates construction of two additional runways, construction of permanent midfield concourses and an automated people-mover ( APM ) system, expansion of the Main Terminal, future mass transit along a right-of-way in the Dulles Access Highway corridor, expansion of automobile parking facilities, construction of additional roads on airport land and expansion of the capacity of the existing roads. Only one additional runway is included in the plans and budget for the CCP. The Authority is required to consult with the Reagan National Capital Planning Commission before undertaking any development that would alter the skyline of Reagan National when viewed from the opposing shoreline of the Potomac River or from the George Washington Parkway. The Authority is also required to consult with the National Capital Planning Commission and the Federal Advisory Council on Historic Preservation before undertaking any major alteration to the exterior of the Main Terminal at Washington Dulles. In addition, the Authority consults with the Advisory Council and the Virginia State Historic Preservation Office on projects that may affect historically significant properties at the Airports. Capital Construction Program The Capital Construction Program initiated by the Authority in 1988 provides for planning, designing and constructing certain facilities at Reagan National and Washington Dulles as contemplated by the Master Plans. Between 1988 and 2000, major capital projects completed under the CCP at Reagan National include, among others, two new main terminals, three parking garages and an airport traffic control tower. Major capital projects completed under the CCP at Washington Dulles include expansion and rehabilitation of the Main Terminal and construction of Concourses A and B, an international arrivals building and runway and road improvements, among others. In 2000, the Authority approved an expansion of the CCP for Washington Dulles, referred to as the d 2 program. The d 2 program, and certain other CCP projects at Reagan National and Washington Dulles, were expected to be completed between 2001 and In the aftermath of the events of September 11, 2001, and due to the deteriorating financial condition of many airlines, the Authority re-examined the CCP. As a result, in the spring of 2002, the Authority revised the expected completion date of the CCP to 2011, delayed the start dates of several projects, deferred some projects until their reactivation is warranted and added several new projects to the CCP, in effect creating two categories of the CCP: (i) the active portion of the CCP, which includes projects that are in progress or have been completed since 2001, and (ii) the deferred portion of the CCP, which includes projects that have been authorized by the Authority but deferred until the Authority determines that demand and circumstances warrant their reactivation. The active portion of the CCP was at that 153

164 CAPITAL CONSTRUCTION PROGRAM time expected to be completed between 2001 and 2011 and was referred to as the CCP. Since the spring 2002, the Authority has continued to make additional adjustments to the CCP as part of its periodic CCP review process. To accommodate recent and expected growth in operations and passenger enplanements as well as to maintain and improve certain of its existing facilities, in the fall of 2006, the Authority revised the scheduled completion date for the CCP from 2011 to 2016 and added $2.1 billion ($2.4 billion in inflated dollars) of projects to the CCP, including preservation projects at Reagan National, such as the rehabilitation of the south hangar line and the runway overlay projects, and growth projects at Washington Dulles, such as the construction of the Tier 2 Concourse, the federal inspection facility and the consolidated rental car facility. In May 2001, United and the Authority agreed to commence the design and construction of the Tier 2 Concourse. United was to be the principal tenant and pay rates and charges sufficient to finance the construction of the Tier 2 Concourse. As part of the resolution of its bankruptcy proceedings, United and the Authority agreed to cancel the agreement to construct the new concourse but United agreed to reimburse the Authority $20.3 million for the expenses the Authority incurred in designing the Tier 2 Concourse. After emerging from bankruptcy, United resumed discussions with the Authority regarding the development of the Tier 2 Concourse. As of September 2007, those discussions remain in a preliminary stage. If the Authority and United are not able to reach an agreement on the development of the Tier 2 Concourse, the Authority may proceed with the Tier 2 Concourse project if and when it deems the project necessary based on projected airline operations and passenger demand at Washington Dulles. It is assumed that the Tier 2 Concourse and related projects will be substantially completed in 2013 at a cost of $1.5 billion. The active portion of the CCP that is scheduled for completion by the end of 2016 is referred to as the CCP. The Authority currently estimates the cost of the CCP to be approximately $7.1 billion (in inflated dollars). Of the $7.1 billion total estimated cost of the CCP, the Authority has expended $3.0 billion. Major completed projects at Reagan National since 2001, include the pedestrian tunnel from the parking garage to Terminal A, security enhancements and various improvements including historical airside facade renovations, electrical and life safety improvements and commercial curb upgrades. Major completed projects at Washington Dulles since 2001, include the Daily Parking Garages 1 and 2, the Main Terminal rehabilitation, the four-gate Concourse B expansion, the south and east baggage basements, the airside and landside pedestrian tunnels, the air traffic control tower, construction of the Z-gates and the remote employee parking and cargo building expansions. The Authority expects most of the projects in the CCP to be completed by the end of The Authority currently estimates the cost of the deferred projects to be approximately $1.5 billion (in 2006 dollars). The Authority expects to reassess its capital needs on a regular basis and modify its construction schedule as necessary to accommodate passenger and aircraft activity, security needs and other factors, which could result in changes to the CCP. The Project Elements of the CCP in 2008 The 2008 Budget includes authorization of $364.3 million for new projects and additional funding for projects already included in the CCP. An additional $34.0 million is included in the CCP for the Enterprise Resource Program (ERP). This increased funding will provide additional system services support and the necessary technology hardware upgrades to support the system as discussed with the Information Technology Committee. New CCP program authorization for projects at Reagan National is $58.9 million. The major new projects at Reagan National include runway safety area improvements, the rehabilitation of the Terminal A baggage handling system, and replacement of the 154

165 CAPITAL CONSTRUCTION PROGRAM parking revenue control system. Additionally, there is added funding for the additional deck on garages A and B/C. The increase in the project cost for the parking garage will have a minimal impact to overall rates and charges. The CCP new program authorization at Washington Dulles is $305.4 million. New authorization at Washington Dulles includes snow removal equipment for the fourth runway and an associated equipment storage facility, and added funding for the Main Terminal APM Station and Security Mezzanine. CCP expenditures for 2008 includes continuation of major projects including construction of the fourth runway and associated taxiways, the AERO Train system (Automated People Mover), and construction of the International Arrivals Building expansion. Certain previously approved projects that were unscheduled, including design efforts for the Tier 2 Concourse, are budgeted for expenditures in Funding sources indicated are subject to change. Bond issues are sized to complete work during certain periods of time, not necessarily to complete entire projects. Some of the larger projects that require several years to complete may require funding from several bond issues. Project Descriptions Descriptions of projects in previous budgets are repeated in this budget if the projects are still active in These descriptions, as well as descriptions of new projects authorized in prior years and the deferred projects, are included on pages 173 through 188. The project amount shown is the total current cost estimate for the project Funding Requirements The requested CCP authorization for 2008 expenditures is $62.1 million at Reagan National and $509.7 million at Washington Dulles. The combined total is $672.8 million which includes capitalized interest. Funding sources include bonds, commercial paper, PFCs, and grants. The 2008 expenditures are the amount of work we expect to be billed in List of Projects Projects are listed by Airport, grouped into major functional cost center categories, and designated by funding source. Expenditure estimates for 2008 include continuation of projects started in prior periods in addition to projects to be initiated in Expenditure estimates for 2009 include only the impact of continuing with projects authorized in 2008 or in prior periods. Completed projects reflect actual project costs, while continuing projects are presented in 2006 dollars. Project estimates reflect annual inflation cost escalation. 155

166 REAGAN NATIONAL MAP 156

167 WASHINGTON DULLES MAP 157

168 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY SUMMARY BY FUNDING SOURCES/REQUIREMENTS FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW DESCRIPTION SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM EXPENDITURES REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled RONALD REAGAN WASHINGTON NATIONAL AIRPORT Bonds Bonds $239,533,000 $49,500,000 $289,033,000 $29,167,000 $59,752,000 $76,394,000 $63,748,000 $59,972,000 Airport Improvement Program Grant AIP 0 9,420,000 9,420, ,025,000 8,395, FAA Security Grant TSA 73,367, ,367, ,455,000 42,912,000 0 PFC Second Application PFC2 4,000, ,000,000 2,707,000 1,293, PFC Future Application Future PFC 39,847, ,847, ,847,000 Total Ronald Reagan Washington National Airport $356,747,000 $58,920,000 $415,667,000 $31,874,000 $62,070,000 $115,244,000 $106,660,000 $99,819,000 WASHINGTON DULLES INTERNATIONAL AIRPORT d2 PROGRAM (excluding all other CCP projects) Bonds Bonds $2,407,877,000 $3,365,014,000 $2,062,778,402 $128,342,000 $2,191,120,402 $333,953,000 $189,770,402 $320,843,000 $598,101,000 $748,453,000 Airport Improvement Program Grant AIP 86,364,000 83,403,000 35,987, ,987,000 18,116,000 5,308, ,000 11,570,000 0 Letter of Intent Discretionary Grant LOI 177,746, ,746, ,746, ,746,000 73,370,000 62,687,000 7,089, ,600,000 Commonwealth of Virginia State Grant CVG 5,542,000 5,542,000 1,326, ,326,000 1,326, PFC Second Application PFC2 13,500,000 13,500, PFC Third Application PFC3 42,674,000 43,846, PFC Fourth Application PFC4 673,900, ,900, ,408, ,408,598 80,886,000 97,484,598 60,017, ,846,000 15,175,000 PFC Future Application Future PFC 11,195,000 11,195,000 11,195, ,195, ,195, Subtotal $3,418,798,000 $4,374,146,000 $2,649,441,000 $128,342,000 $2,777,783,000 $507,651,000 $366,445,000 $388,942,000 $716,517,000 $798,228,000 CCP (excluding d2 Program) Series 1997A Bonds $0 $0 $1,183,785,000 $177,050,000 $1,360,835,000 $134,894,000 $119,302,000 $202,182,000 $284,677,000 $619,780,000 Airport Improvement Program Grant AIP ,837, ,837, ,000 1,505, ,000 16,452,000 0 FAA Security Grant TSA ,420, ,420, ,288,000 53,982,000 70,150,000 0 Letter of Intent Discretionary Grant LOI PFC Second Application PFC PFC Third Application PFC , ,000 98, PFC Fourth Application PFC ,230, ,230,000 1,527,000 1,151,000 4,552, PFC Future Application Future PFC ,813, ,813, ,813,000 0 Subtotal $0 $0 $1,561,183,000 $177,050,000 $1,738,233,000 $137,019,000 $143,246,000 $261,096,000 $577,092,000 $619,780,000 Total Washington Dulles International Airport $3,418,798,000 $4,374,146,000 $4,210,624,000 $305,392,000 $4,516,016,000 $644,670,000 $509,691,000 $650,038,000 $1,293,609,000 $1,418,008,

169 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY SUMMARY BY FUNDING SOURCES/REQUIREMENTS FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW DESCRIPTION SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM EXPENDITURES REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled METROPOLITAN WASHINGTON AIRPORTS AUTHORITY Bonds Bonds $2,407,877,000 $3,365,014,000 $3,486,096,402 $354,892,000 $3,840,988,402 $498,014,000 $368,824,402 $599,419,000 $946,526,000 $1,428,205,000 Letter of Intent Discretionary Grant LOI 177,746, ,746, ,746, ,746,000 73,370,000 62,687,000 7,089, ,600,000 Letter of Intent Discretionary Grant TSA ,787, ,787, ,288,000 84,437, ,062,000 0 Airport Improvement Program Grant AIP 86,364,000 83,403,000 54,824,000 9,420,000 64,244,000 18,616,000 7,838,000 9,768,000 28,022,000 0 Commonwealth of Virginia State Grant CVG 5,542,000 5,542,000 1,326, ,326,000 1,326, PFC Second Application PFC2 13,500,000 13,500,000 4,000, ,000,000 2,707,000 1,293, PFC Third Application PFC3 42,674,000 43,846,000 98, ,000 98, PFC Fourth Application PFC4 673,900, ,900, ,638, ,638,598 82,413,000 98,635,598 64,569, ,846,000 15,175,000 PFC Future Application Future PFC 11,195,000 11,195, ,855, ,855, ,195, ,813,000 39,847,000 Capitalized Interest ,015,000 77,859, ,024, ,720, ,412,000 0 Total Metropolitan Washington Airports Authority $3,418,798,000 $4,374,146,000 $4,567,371,000 $364,312,000 $5,486,698,000 $754,403,000 $672,785,000 $894,002,000 $1,647,681,000 $1,517,827, NEW BUDGET /01/ PROGRAM PROGRAM 2007 PROGRAM AUTHORIZATION 1/ EXPENDITURES 2/ CARRYOVER AUTHORIZATION AUTHORIZATION 3/ EXPENDITURES AUTHORIZATION 3/ Washington National $1,356,978,000 $1,000,231,000 $356,747,000 $58,920,000 $415,667,000 $31,874,000 $383,793,000 Washington Dulles 7,555,894,000 3,345,270,000 4,210,624, ,392,000 4,516,016, ,670,000 3,871,346,000 Capitalized Interest 555,015,000 77,859, ,156,000 Total $8,912,872,000 $4,345,501,000 $4,567,371,000 $364,312,000 $5,486,698,000 $754,403,000 $4,732,295,000 4/ 1/ Includes Annual Inflation Cost Escalation. 2/ Includes Capitalized Interest. 3/ Includes Unscheduled Projects. 4/ The Authority epects to issue approximately $3.0 billion of additional Bonds and expects to fund the remainder of these costs with grants and PFC revenues. FUND: Bonds - All Bonds and Commercial Paper; AIP - Airport Improvement Program Grant; LOI - Letter of Intent; TSA - FAA Security Grant; CVG - Commonwealth of Virginia State Grant; PFC2-2nd Passenger Facility Charge; PFC3-3rd Passenger Facility Charge; PFC4-4th Passenger Facility Charge; and Future PFC - Future Passenger Facility Charge * d 2 Program Original Budget Includes Escalation, Reprogramming and New Program Authorization 159

170 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT RED BK FUNDING 2008 NEW NUM PROJ SOURCE/ PROGRAM PROGRAM EXPENDITURES IAD NUM DESCRIPTION REQUIREMENT CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled ROADS South Area Roads East Access Bonds $362,000 $0 $362,000 $0 $0 $0 $0 $362, Landside Planning Study Bonds 300, , , , BUILDINGS Consolidated Communication Center Bonds 12,840,000 3,000,000 15,840,000 7,800,000 4,000,000 4,040, Hangar Office Redevelopment Bonds 79, , , Building Modifications to Accommodate Inline Baggage Screening Bonds 24,456, ,456,000 4,004,000 9,673,000 10,779,000 0 Building Modifications to Accommodate Inline Baggage Screening TSA 73,367, ,367, ,455,000 42,912,000 Total 97,823, ,823,000 4,004,000 9,673,000 41,234,000 42,912, Airline Regional Facilities Bonds 49,975, ,975, ,975, Airline Regional Facilities Future PFC 39,847, ,847, ,847,000 Total 89,822, ,822, ,822, Airport Rescue and Fire Fighting Facility Bonds 11,186, ,186,000 6,082,000 5,104, Authority Office Building Expansion Bonds 4,591, ,591,000 2,448,000 2,143, Convert Interim Terminal to Aircraft Hangar Bonds 8,112, ,112, ,112,

171 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT RED BK FUNDING 2008 NEW NUM PROJ SOURCE/ PROGRAM PROGRAM EXPENDITURES IAD NUM DESCRIPTION REQUIREMENT CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled Flight Information Display System (FIDS) Phase II (Design) Bonds 134, , , &447 1 Graphic/Signage Phase II (Design) Bonds 130, , , Terminal A Building Rehabilitation Bonds 3,810, ,000 4,410,000 4,125, , Terminal A Building Rehabilitation PFC2 4,000, ,000,000 2,707,000 1,293, Total 7,810, ,000 8,410,000 6,832,000 1,578, Baggage Handlilng System Rehabilitation - Terminal A Bonds 10,000,000 10,000, ,000,000 8,000,000 0 AIRFIELD FACILITIES Airfield Planning and Programming Bonds 208, , , , Runway 1/19 - Safety Area Improvements Bonds 10,643, ,643,000 30,000 1,000,000 4,725,000 4,888,000 Runway 1/19 - Safety Area Improvements AIP 9,420,000 9,420, ,025,000 8,395, ,643,000 9,420,000 20,063,000 30,000 2,025,000 13,120,000 4,888, Environmental Impact Statement - Crosswind Runways Safety Area Bonds 5,125, ,125, ,000 2,000,000 2,000,000 1,008, Runway Overlays; 1-19, & 4-22 Bonds 22,000, ,000, ,640,000 5,400,000 13,960, Noise Monitoring System Bonds 1,000, ,000, , , Terminal A Apron Rehab (Design) Bonds 544, , ,

172 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT RED BK FUNDING 2008 NEW NUM PROJ SOURCE/ PROGRAM PROGRAM EXPENDITURES IAD NUM DESCRIPTION REQUIREMENT CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled New Apron at Demolished ARFF Site Bonds 5,900,000 5,900, ,232,000 4,668,000 0 PARKING FACILITIES Additional Deck on Parking Garages A and B/C Bonds 44,428,000 6,000,000 50,428, ,000 12,750,000 21,000,000 16,537, Parking Revenue Control System Replacement Bonds 7,000,000 7,000, ,500,000 3,500,000 0 UTILITY SYSTEMS Radio Program Enhancements Bonds 173, , , Alternate Water Supply Bonds 2,553, ,553, ,000 1,700, , Connect North Hangars to Chilled Water Bonds 979, , , Public Safety Radio Compatability Project Bonds 900, , , , Communication Facilities and Equipment (F&E) System Integration Bonds 982, , , , Upgrade Airfield Storm Drainage S t Bonds 628, , ,000 OTHER Other Planning and Programming Bonds 4,686, ,686, ,000 1,250,000 1,250,000 1,936,

173 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY RONALD REAGAN WASHINGTON NATIONAL AIRPORT RED BK FUNDING 2008 NEW NUM PROJ SOURCE/ PROGRAM PROGRAM EXPENDITURES IAD NUM DESCRIPTION REQUIREMENT CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled Enterprise Resource Program Bonds 11,887,000 17,000,000 28,887, ,000,000 9,000,000 11,887, Geographical Information System Bonds 4,408, ,408, ,000 1,200,000 1,200,000 1,258, Asbestos Removal Bonds 996, , , , Contaminated Soils Removal/Disposal and Environmental Compliance Bonds 3,467, ,467,000 59, ,408, Landscaping Bonds 7,487, ,487, ,487,000 All Other Bonds 464, , , All Other PFCs All Other AIP Total 464, , , Total National Airport $356,747,000 $58,920,000 $415,667,000 $31,874,000 $62,070,000 $115,244,000 $106,660,000 $99,819,000 FUND: Bonds - All Bonds and Commercial Paper; AIP - Airport Improvement Program Grant; TSA - FAA Security Grant; PFC2-2nd Passenger Facility Charge; and Future PFC - Future Passenger Facility Charge 163

174 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled ROADS North Area Roads Capacity Expansion Bonds 550, ,000 $275,000 $275,000 $0 $ North Area Roads - Phases II-V Bonds $32,416,000 $62,641,000 10,787,000 6,260,000 17,047,000 17,047, North Area Roads - Phases II-V PFC4 25,490,000 25,490,000 25,490, ,490,000 8,953,000 10,815,000 5,722,000 0 Total 57,906,000 88,131,000 36,277,000 6,260,000 42,537,000 26,000,000 10,815,000 5,722, Main Terminal Commercial Curb Expansion Bonds 6,300,000 2,791,000 2,791, ,791, ,000 2,291, , Access Highway Widening Pre-Engineering Study Bonds 135, , , Access Highway Rehabilitation Bonds 2,386, ,386, , ,553,000 0 Access Highway Rehabilitation AIP 1,385, ,385, ,005, ,000 0 Total 3,771, ,771, ,000 1,005,000 1,933, North Area Airside Access Road Bonds 3,475, ,475, ,000 2,500, ,000 0 BUILDINGS Z-Gate Rehabilitation Bonds 14,421,000 25,686,000 Completed Completed 420 Z-Gate Rehabilitation PFC2 13,500,000 13,500,000 Total 27,921,000 39,186, Building Planning and Programming Bonds 242, , , , & 3700 Security Mezzanine and Main Terminal People Mover Station, Package 6 Bonds 129,470, ,745,000 44,816,000 88,000, ,816,000 40,084,000 55,961,000 36,771,000 0 Security Mezzanine and Main Terminal People Mover Station, Package 6 PFC4 101,730, ,730,000 10,000, ,000,000 10,000, Total 231,200, ,475,000 54,816,000 88,000, ,816,000 50,084,000 55,961,000 36,771, Concourse B Expansion - 4 Gate Addition PFC3 13,840,000 13,840,000 Completed Completed Concourse B West Expansion Bonds 2,621,000 32,874,000 30,374,403 2,500,000 32,874,403 28,635,000 4,239, Concourse B West Expansion PFC4 81,779,000 81,779,000 34,863, ,863,597 15,000,000 17,363,597 2,500,000 0 Total 84,400, ,653,000 65,238,000 2,500,000 67,738,000 43,635,000 21,603,000 2,500, Tier 2 Concourse Bonds 599,685, ,579, ,658, ,658,000 10,635,000 42,623, ,000, ,400,000 Tier 2 Concourse (Temp. Concourse to C) Bonds 16,715,000 16,715,000 16,715, ,715, ,715,000 Total 616,400, ,294, ,373, ,373,000 10,635,000 42,623, ,000, ,115,

175 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled People Mover Performance Specifications Bonds 100, ,000 Completed Completed New Airport Traffic Control Tower/FAA Facilities Bonds 3,876,000 13,174, New Airport Traffic Control Tower/FAA Facilities AIP 38,124,000 38,124,000 5,858, ,858,000 5,000, , Total 42,000,000 51,298,000 5,858, ,858,000 5,000, , Tier 2 Baggage Equipment Bonds 67,150,000 77,856,000 77,856, ,856, ,856, People Mover-Main Tml to Concourse B Bonds 60,829, ,674,000 58,970, ,970,000 49,611,000 9,359, People Mover-Main Tml to Concourse B CVG 5,542,000 5,542,000 1,326, ,326,000 1,326, People Mover-Main Tml to Concourse B PFC4 256,229, ,229, ,742, ,742,000 33,889,000 44,169,000 22,184,000 33,500,000 Total 322,600, ,445, ,038, ,038,000 84,826,000 53,528,000 22,184,000 33,500, Concourse B Building Adaptations for the People Mover (East/West) Bonds 8,352,000 24,662,000 24,662, ,662,000 24,533, , Concourse B Building Adaptations for the People Mover (East/West) PFC4 74,448,000 74,448,000 26,856, ,856,000 8,559,000 3,122, ,175,000 Total 82,800,000 99,110,000 51,518, ,518,000 33,092,000 3,251, ,175, Concourse B Building Adaptations for the IAB People Mover Bonds 38,600,000 44,755,000 44,267, ,267, ,281,000 42,986, Walkback Tunnel, Tier 1 to Tier 2 Bonds 34,600,000 45,633,000 38,516, ,516,000 29, ,722,000 31,765,000 Walkback Tunnel, Tier 1 to Tier 2 LOI 34,600,000 34,600,000 34,600, ,600, ,600,000 Total 69,200,000 80,233,000 73,116, ,116,000 29, ,722,000 66,365, High Speed Conveyor Baggage System (Main Terminal to Tier 2) Bonds 66,250,000 76,813,000 76,613, ,613, ,000 76,388, IAB People Mover Stations, Tunnels & System Bonds 209,353, ,830, ,706, ,706, , , ,276,000 IAB People Mover Stations, Tunnels & System PFC4 2,347,000 2,347,000 2,347, ,347, ,347,000 0 Total 211,700, ,177, ,053, ,053, , ,027, ,276, People Mover - Tier 1 to Tier 2 Bonds 145,592, ,635,000 59,117, ,117,000 43,419,000 5,000,000 10,698,000 0 People Mover - Tier 1 to Tier 2 PFC4 114,864, ,864, ,864, ,864, ,254,000 29,611,000 70,999,000 Total 260,456, ,499, ,981, ,981,000 43,419,000 19,254,000 40,309,000 70,999, People Mover - Tier 3 East Increment (nonservice) Bonds 84,553, ,752,000 29,165, ,165,000 13,969,000 2,817,000 12,379,000 0 People Mover - Tier 3 East Increment (nonservice) PFC4 12,246,000 12,246,000 12,246, ,246,000 4,485,000 7,761, Total 96,799, ,998,000 41,411, ,411,000 18,454,000 10,578,000 12,379,

176 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled People Mover - Maintenance Facility & Service Tunnel Bonds 59,900,000 90,029,000 Completed Completed New Engineering and Maintenance Facility - Phase I Bonds 5,000,000 5,776,000 4,558, ,558, ,000 4,220, Maintenance Equipment and Storage Warehouse Bonds 2,881,000 3,340,000 3,343, ,343, ,000 3,286, Baggage Conveyor Tunnels to Tier 2 Bonds 125,969, ,052, ,091, ,091, , ,576, ,334, Cargo Building Phase III and 7 Bonds 15,777,000 18,182,000 12,388, ,388, , ,234, Concourse B West Expansion Basement Bonds Concourse B West Expansion Basement PFC4 7,230, ,230,000 1,527,000 1,151,000 4,552,000 0 Total 7,230, ,230,000 1,527,000 1,151,000 4,552, &3 820 Conveyor and Building Changes for Inline Baggage Screening TSA/CVG 145,420, ,420, ,288,000 53,982,000 70,150,000 Conveyor and Building Changes for Inline Baggage Screening Bonds 79,951, ,951,000 3,754, ,197,000 Total 225,371, ,371,000 3,754,000 21,288,000 53,982, ,347, Concourse C/D Rehabilitation Bonds 7,566,000 8,000,000 15,566, ,000 5,500,000 5,500,000 4,316, Airline Commuter Facilities Bonds 23,791, ,791,000 17,000, ,791, Tier 3 East Concourse/Automated People Mover Station Bonds 546,997, ,997,000 9, ,679, ,309, Airport AOA Security Cameras Bonds 4,833, ,833,000 2,000,000 2,833, Main Terminal Exp. Joint Replacement Bonds 2,982,000 1,500,000 4,482,000 1,859,000 2,623, Concourse Modifictions for Airbus A-380 Bonds 5,466, ,466, ,000 3,250,000 2,016, Dulles Police Station Bonds 2,050, ,050, , ,000 1,200, International Arrivals Building (IAB) Exp. Bonds 181,762, ,762,000 16,434,000 34,759,000 50,668,000 79,901, Airport Rescue and Fire Fighting Facility - Station 304 (includes Roads and Utilities) Bonds 18,411, ,411,000 4,816,000 8,623,000 4,972, MA-220 Shops 1 Annex Bonds 4,446, ,446,000 3,278,000 1,168,

177 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled Consolidated Rental Car Facility (Design) Bonds 12,000, ,000, ,000 3,000,000 8,767, North Area Maintenance Facility Bonds 5,000, ,000, ,000 1,896,000 2,122, Tenant Relocation Bonds 1,857,000 2,100,000 3,957,000 1,350,000 2,607, AIRFIELD FACILITIES Aircraft Parking Apron VI Bonds 15,200,000 21,359,000 Completed Completed Taxiway F Bonds 7,262,000 16,041,000 Completed Completed Taxiway F PFC3 19,463,000 19,463,000 Completed Completed Taxiway F AIP 375, ,000 Completed Completed Total 27,100,000 35,879, Taxiway J Extension Bonds 978, , , Taxiway J Extension PFC3 8,200,000 9,372, Total 8,200,000 9,372, , , , Fourth Runway & Associated Taxiways Bonds 72,654, ,069,000 24,792,000 17,802,000 42,594,000 42,594, Fourth Runway & Associated Taxiways LOI 143,146, ,146, ,146, ,146,000 73,370,000 62,687,000 7,089,000 0 Total 215,800, ,215, ,938,000 17,802, ,740, ,964,000 62,687,000 7,089, Tier 2 Apron Paving Bonds 104,117, ,858,000 86,959, ,959,000 12,686,000 6,059, ,241,000 31,973,000 Tier 2 Apron Paving AIP 11,570,000 11,570,000 11,570, ,570, ,570,000 0 Total 115,687, ,428,000 98,529, ,529,000 12,686,000 6,059, ,811,000 31,973, Concourse B Apron Paving Bonds 5,900,000 6,759,000 6,387, ,387, ,000 2,207,000 3,410, Tier 3 Apron Paving - Northeast Quadrant Bonds 4,680,000 5,590,000 Completed Completed Tier 3 Apron Paving - Northeast Quadrant AIP 10,000,000 10,000,000 Completed Completed Total 14,680,000 15,590, Hydrant Fueling at Z-Gates Bonds 6,423,000 6,998,000 5,920, ,920, ,863,000 4,057, Hydrant Fueling for Concourse B West Extension Bonds 3,500,000 4,032,000 2,975, ,975,000 2,344, , Hydrant Fueling for Tiers 2 and 3 Bonds 8,200,000 9,476,000 7,909, ,909, , , , ,000 6,655, Demolish Old C/D Concourses, Repave Apron & T/W C/D Bonds 66,500,000 77,103,000 77,103, ,103, ,206,000 72,897,

178 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled Airfield Pavement Panel Replacement Bonds 25,524,000 47,147,000 18,079,000 2,000,000 20,079,000 7,963,000 7,828,000 4,288,000 0 Airfield Pavement Panel Replacement AIP 4,476,000 4,476,000 4,476, ,476,000 3,776, , Total 30,000,000 51,623,000 22,555,000 2,000,000 24,555,000 11,739,000 8,528,000 4,288, Cargo Building 6 Apron - Phase II Bonds 1,610, , , ,000 0 Cargo Building 6 Apron - Phase II AIP 2,990,000 29, Total 4,600,000 29,000 29, , , Cargo Building 7 Apron AIP 7,425,000 7,425,000 7,000, ,000,000 7,000, Cargo Building 7 Apron Bonds 3,998,000 5,821,000 5,821, ,821,000 1,868,000 3,953, Total 11,423,000 13,246,000 12,821, ,821,000 8,868,000 3,953, Deicing Fluid Controls per Heightened Regulations Bonds 23,000,000 9,640,000 9,113, ,113,000 4,321,000 3,737,000 1,055, Relocate/Expand Airfield Electrical Vaults Bonds 7,225, ,225,000 4,092,000 3,133, Runway 12/30 Reconstruction Bonds 7,951, ,951, , ,701,000 Runway 12/30 Reconstruction AIP 14,400, ,400, ,400,000 Total 22,351, ,351, , ,101, Taxilane E Rehabilitation AIP 2,052, ,052, ,052, Taxiway G Bonds 59,064, ,064, ,700,000 56,364, Tier 3 Apron Bonds 76,016, ,016,000 1,036, ,873,000 65,107, Airfield Modifications for Airbus A-380 Bonds 5,979, ,979,000 2,524,000 3,015, , Future Runway 1C-19C & Future Taxiways W & W1 Bonds 11,864, ,560, ,424,000 5,777,000 15,889,000 98,159,000 20,599, Noise Monitoring System AIP 1,000, ,000, , , Rehabilitate Taxiway B Airfield Shoulders Bonds 2,000, ,000,000 1,500, , Fourth Runway Maintenance Equipment Bonds 8,845,000 8,845, ,422,000 4,423, Runway 1R-19L Light Base & Conduit Replacement Bonds 4,200,000 4,200, ,200,

179 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled PARKING FACILITIES Main Lot Exit Plaza Expansion Bonds 300,000 2,365,000 2,056, ,056,000 54, ,344, , Economy Public Parking: New Lot North of Horsepen Run Bonds 18,100, Economy Public Parking: Relocation of Toll Plaza Bonds 4,400, Employee Parking: South Lot Phase I Bonds 11,000,000 12,754,000 12,635, ,635, ,000 12,397, Employee Parking: North Lot Phase II Bonds 3,605,000 4,023,000 Completed Completed Cargo 7 Public/Employee Parking Bonds 2,053,000 2,205,000 2,205, ,205, ,205, Temporary Parking Bonds 1,000,000 1,161,000 1,150, ,150, , , Blue Lot Relocation Bonds 2,533, ,533, ,200,000 1,333,000 0 UTILITY SYSTEMS Communication Facilities & Equipment (F&E) System Integration Bonds 1,162, ,162, , , North-South Telecom. Ductbanks Bonds 496, ,000 52, , Utility Systems Planning & Programming Bonds 769, , , , , Storm Water Management Facilities Bonds 20,000,000 10,362,000 4,930, ,930,000 2,401,000 2,529, Telecommunication Cable Conversion Bonds 1,556, ,556, ,556, Standby Power - Terminal Buildings Bonds 669, , , South Utility Building Bonds 80,600,000 98,215,000 89,884, ,884,000 4,078,000 3,419,000 30,485,000 51,902, Dedicated Fire Water Line Bonds 9,300,000 11,787,000 Completed Completed North Parking Area Utilities Extension Bonds 1,500,000 7,000 Completed Completed Rental Car Area Utilities Upgrades Bonds 1,835,000 2,013,000 1,981, ,981, ,981, Utility Tunnels Bonds 68,189, ,327,000 61,467, ,467,000 3,606,000 6,507,000 13,984,000 37,370,

180 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled South Electrical Substation & Distribution Center Bonds 6,900,000 16,595,000 7,966, ,966,000 1,191,000 1,030,000 2,040,000 3,705, South Area Utility Trunk Lines Bonds 9,500,000 10,177,000 5,728, ,728,000 1,110, ,000 1,424,000 2,482, South Area Utility Distribution & Tie-ins Bonds 1,000,000 1,090,000 Completed Completed Public Utility Taps - Fees and Coordination Bonds 2,000,000 2,297,000 Completed Completed Expanded Water Storage Bonds 3,800,000 4,407,000 4,406, ,406, ,000 4,006, Special System - Tie-ins and Upgrades Bonds 13,378,000 14,744,000 8,855, ,855,000 3,500,000 2,000,000 2,000,000 1,355, Cargo 7 Site Utilities Bonds 700, , , , , Jet Fuel Pipeline - Fuel Settling Tank Farm Bonds 46,862, ,862,000 38,678, ,184, Public Safety Radio Compatibility Project Bonds 900, , , , Domestic Water Pump System Renovation Bonds 670, , , Radio Program Upgrades Bonds 1,334,000 14,829,000 8,466, ,466, ,000 5,082,000 2,759, Main Terminal HVAC Commissioning Phase 2 Bonds 3,630,000 3,630, ,000 3,191, Maintenance Equipment Storage Building Bonds 2,000,000 2,000, ,000, Gate 313 Sewer Connection Bonds 1,215,000 1,215, ,215, LAND 957 Site Development for Commercial Hangars Bonds 13,338,000 99,779,000 16,851,000 9,780,000 26,631,000 4,395,000 5,400,000 16,836, &3 786 Site Development for Commercial Hangars Future PFC 9,600,000 9,600,000 9,600, ,600, ,600, Total 22,938, ,379,000 26,451,000 9,780,000 36,231,000 4,395,000 15,000,000 16,836, Right-of-Way Easements for Capital Expansion Bonds 1,000,000 1,149,000 Completed Completed 170

181 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled OTHER Other Planning & Programming Bonds 5,000,000 12,680,000 3,153,000 2,000,000 5,153,000 1,800,000 1,500,000 1,853, Aerial Topographic Survey Bonds 300,000 1,083, , , , Comprehensive Airport Security System Study Bonds 5,363, Comprehensive Airport Security System Study AIP 11,404,000 11,404,000 7,083, ,083,000 2,340,000 3,750, ,000 0 Total 11,404,000 16,767,000 7,083, ,083,000 2,340,000 3,750, , Wetlands Mitigation Program Bonds 15,167,000 18,715,000 4,456, ,456,000 3,806, , Wetlands Mitigation Program PFC3 1,171,000 1,171, Wetlands Mitigation Program PFC4 4,767,000 4,767, Wetlands Mitigation Program Future PFC 1,595,000 1,595,000 1,595, ,595, ,595, Total 22,700,000 26,248,000 6,051, ,051,000 3,806,000 2,245, Asbestos Removal-Beyond Stages I & II Bonds 2,600,000 3,017,000 2,921, ,921,000 9, ,370,000 1,542, Contaminated Soils Removal/Disposal Beyond Stages I & II Bonds 7,700,000 8,916,000 8,400, ,400, , , ,000 6,743, Airport Landscape Renovations & Expansions - Phase I Bonds 1,000,000 2,000,000 Completed Completed Temporary Facilities for Phasing Bonds 8,100,000 9,389,000 4,417, ,417,000 2,330,000 2,087, Contractor Staging Area Bonds 7,000,000 10,024, , , , , Enterprise Resource Program Bonds 11,851,000 17,000,000 28,851, ,000,000 9,000,000 11,851, Access Control & Monitoring System, CCTV and Video Monitoring Systems Integration Bonds 5,962, ,962,000 1,069,000 2,000,000 2,893, Geographical Information System Bonds 4,203, ,203, , ,000 1,300,000 1,403, Environmental Mitigation (Wetlands & Stream) Bonds 7,000, ,000,000 1,135, ,000 2,309,000 3,456, Contribution to Dulles Metro Rail Future PFC 205,813, ,813, ,813, Asbestos Removal Bonds 515, ,000 50, ,

182 CAPITAL CONSTRUCTION PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY WASHINGTON DULLES INTERNATIONAL AIRPORT RED BK FUNDING d2 PROGRAM d2 PROGRAM 2008 NEW EXPENDITURES NUM PROJ SOURCE/ ORIGINAL BUDGET ORIGINAL BUDGET PROGRAM PROGRAM IAD NUM DESCRIPTION REQUIREMENT AUTHORIZATION AUTHORIZATION* CARRYOVER AUTHORIZATION AUTHORIZATION Unscheduled Contaminated Soils Removal/Disposal & Environmental Compliance Bonds 3,145, ,145, ,000 1,000,000 1,000, , Permanent Sign System Bonds 7,200,000 10,141,000 8,745, ,745,000 1,500,000 5,163,000 2,082,000 0 All Other Bonds 21,493, ,493,000 21,493, All Other PFCs 98, ,000 98, All Other AIP Total 21,591, ,591,000 21,591, Total Dulles International Airport $3,418,798,000 $4,374,146,000 $4,210,624,000 $305,392,000 $4,516,016,000 $644,670,000 $509,691,000 $650,038,000 $1,293,609,000 $1,418,008,000 TOTAL CAPITALIZED INTEREST NATIONAL/DULLES $555,015,000 $77,859,000 $101,024,000 $128,720,000 $247,412,000 TOTAL CAPITAL CONSTRUCTION PROGRAM $3,418,798,000 $4,374,146,000 $4,567,371,000 $364,312,000 $5,486,698,000 $754,403,000 $672,785,000 $894,002,000 $1,647,681,000 $1,517,827,000 FUND: Bonds - All Bonds and Commercial Paper; AIP - Airport Improvement Program Grant; LOI - Letter of Intent; TSA - FAA Security Grant; CVG - Commonwealth of Virginia State Grant; PFC2-2nd Passenger Facility Charge; PFC3-3rd Passenger Facility Charge; PFC4-4th Passenger Facility Charge; and Future PFC - Future Passenger Facility Charge * d 2 Program Original Budget Includes Escalation, Reprogramming and New Program Authorization 172

183 CAPITAL CONSTRUCTION PROGRAM The project amount shown with the project descriptions is the total current cost estimate for the project. RONALD REAGAN WASHINGTON NATIONAL AIRPORT Roads South Area Roads East Access, $1,808,000. To facilitate restoration of airfield operating areas, the access road to the Crew Lot will be relocated away from the runway safety area. Work includes construction of a new road and drainage, lighting and other improvements. Landside Planning Study, $1,400,000. This project is a continuation of planning efforts at Reagan National and is a revision of Phase VI Roads for the Airport. Buildings Consolidated Communication Center, $18,258,000. This project includes a study, design, and construction of an expanded consolidated communications center at Reagan National. The center, located on the first floor of Hangar 5, will be expanded and reconfigured to include fire and police positions covering both Reagan National and Washington Dulles operations. Additional space for radio equipment and personnel will also be provided. Building-wide rehabilitations of aged Hangar 5 utility systems such as plumbing, electrical and HVAC are also planned. Hangar Office Redevelopment (Design), $370,000. Modernization and rehabilitation designs will be developed for a portion of the leased office areas along the north and south hangar lines. The scope of work will include, but is not limited to, upgrading the heating/cooling distribution system, additional elevators, and new wall and floor coverings. The finished office areas will be compliant with the Americans with Disability Act and current building code regulations. Building Modifications to Accommodate Inline Baggage Screening, $100,825,000. Due to changes in security requirements at airports, and specifically for checking baggage, this project will modify the building structure and space allocation required to accommodate the automated baggage screening systems. This project provides for the design and construction of those changes to building infrastructure. The Authority does not expect to undertake this project unless it receives substantial federal grants to help defray its costs. Airline Regional Facilities, $89,822,000. This project involves the construction of a new 10-Gate Regional Concourse in the northern area of the Airport. The concourse will be connected to the North Pier of Terminal C by an underground pedestrian tunnel with moving walkways. Access to aircraft will be through passenger boarding bridges connected to the concourse. This project will not be commenced until the Authority and US Airways reach a mutually satisfactory agreement. Airport Rescue and Fire Fighting Facility, $12,808,000. This project includes the design and construction of a new airport rescue and fire fighting facility to replace the existing facility, intersection improvements for vehicle access and demolition of the existing facility, as well as conversion of its site for aircraft parking. Authority Office Building (AOB) Expansion, $5,330,000. This project includes design and construction of an addition to the AOB, and renovation of a portion of the existing facility. The two-story, 10,000 square feet addition will improve significantly the Authority s shortfall for space. Work also includes extensive modifications to the existing facility. Included in this project is the design and construction of a connector bridge that is approximately 800 feet in length, and will connect the AOB to Hangar 11. Convert Interim Terminal to Aircraft Hangar, $11,287,000. Following the de-commissioning of Hangar 11 as the Interim Terminal, the portion of the structure external to Hangar 11 will be demolished and 173

184 CAPITAL CONSTRUCTION PROGRAM the interior of Hangar 11 will be converted back to an aircraft maintenance hangar. Flight Information Display System (FIDS), Phase II (Design), $145,000. The FIDS will be designed for inclusion in the rehabilitated Terminal A. Graphics/Signage, Phase II (Design), $176,000. Location and directional signs with graphics will be designed for the rehabilitated Terminal A. Terminal A Building Rehabilitation, $54,332,000. The existing historic Terminal A will be restored and rehabilitated to improve air carrier and commuter aircraft accommodations. Work will include demolition of additions to the original terminal, installation of new loading bridges, reconfiguration and/or relocation of ticketing and baggage claim areas, rehabilitation of the heating/cooling systems for compatibility with the Airport s new boiler/chiller system, and other related improvements. Baggage Handling System Rehabilitation Terminal A, $10,000,000. This project provides for the refurbishment and replacement of critical components of the baggage conveyance system in Terminal A. Airfield Facilities Airfield Planning and Programming, $850,000. This project provides funding for all ranges of airfield planning, programming and other airfield studies required to support airfield capital projects. Runway 1/19 Safety Area Improvements, $20,285,000. Design and construct improvements necessary to mitigate FAA-identified, RSA deficiencies for Runway 1/19. Currently, the dimensions of the RSA at Reagan National do not meet the FAA design criteria and the Airport is operating under a waiver. The RSA is an area surrounding the runway that is prepared for or suitable for reducing the risk of injury to passengers or damage to aircraft should an aircraft happen to depart from the runway in the event of an undershoot, overshoot, or excursion from the runway boundary for any other reason. The RSA includes all pavements, shoulders, turf, blast pads, and stopways as applicable. The project also includes enhancements to Runway 1 hold apron and infrastructure. Environmental Impact Statement (EIS) Crosswind Runways Safety Area (RSAs), $5,125,000. Prepare an EIS for the RSAs of Runways 4/22 and 15/33. Study shall be conducted in accordance with the National Environmental Protection Act and FAA guidelines to improve the RSAs for the eastern ends of Runways 4/22 and 15/33, which do not currently meet FAA standards. Runway Overlays; 1-19, 15-33, and 4-22, $22,000,000. Various sections of the runway and taxiways require asphalt resurfacing, This project consists of installing four inches of asphalt mill and overlay and associated pavement markings on the 6,869 foot runway 1-19, the 4,911 foot runway 4-22, and the 5,204 foot runway Noise Monitoring System, $1,000,000. The project replaces and/or upgrades the current noise monitoring equipment at Reagan National and Washington Dulles to provide a long-term commitment for monitoring aircraft noise from Reagan National and Washington Dulles flight operations. Terminal A Apron Rehabilitation (Design), $1,209,000. The rehabilitation of Terminal A will result in the relocation of airline gates, which will require reconstruction of the apron area. The apron will be sized to accommodate both air carrier and commuter parking positions. New Apron at Demolished ARFF Site, $5,900,000. This project replaces the site and foundation of the existing ARFF Station 301 with pavement capable of supporting parking aircraft. Parking Facilities Additional Deck on Parking Garages A and B/C, $50,772,000. Design and construct an additional parking deck on garages A and B/C. It was 174

185 CAPITAL CONSTRUCTION PROGRAM determined through the Reagan National Landside Study that additional decks could be added to the existing structures in order to gain more parking spaces for a variety of needs, such as hourly and daily parking. The return on investment (ROI) is estimated at 8%. Parking Revenue Control System Replacement, $7,000,000. This project includes the replacement of the existing parking revenue control system with a system that includes enhanced security encryption to satisfy outside financial and credit industry standards. Utility Systems Radio Program Enhancements, $1,375,000. This project will provide enhancements to the 800MHz radio system. The following are included: new tower site selection and construction, additional talk channels, purchase of elite dispatch consoles, system management terminal and software, and other improvements. Alternate Water Supply, $3,350,000. This project includes design and construction of a new secondary water supply line from Crystal City to the Airport. This project will also include the design for the rehabilitation of the existing 50 year old water line running from Crystal City to the North Water Pump Station. Connect North Hangars to Chilled Water, $1,181,000. This project will connect Hangars 11 and 12 to the chilled water cooling system provided by the Boiler/Chiller Plant. It is part of an incremental program to improve the cooling system for all hangars. Public Safety Radio Compatibility Project, $900,000. This project funds the upgrade of radios and other equipment to meet project 25 (p25) standards. Project 25 addresses the needs for common digital public safety radio communications standards for first responders and Homeland Security/Emergency Response professionals, which allows for a high degree of equipment interoperability and compatibility. Communication Facilities and Equipment System Integration, $4,185,000. Communication facilities, equipment, and system integration are needed to support the Airport s communications requirements. These include ductbanks, switches, connectivity for data transmission, premises distribution systems, and other equipment as identified by the Authority s comprehensive communications plan. Upgrade Airfield Storm Drainage Systems, $750,000. This project will provide designs for drainage improvements in the southern area of the Airport. Other Other Planning and Programming, $4,758,000. This project provides funding for all ranges of facility planning, project programming and other project studies as needed. Enterprise Resource Program, $29,044,000. An Authority-wide Enterprise Resource Planning System will provide a comprehensive integrated system encompassing core administration functional areas and link business processes, integrates data, and share data information across applications with users. Geographical Information System (GIS), $4,408,000. Design and implement the GIS for both Reagan National and Washington Dulles. Implementation in 2008 will involve refining system requirements, defining system interfaces with existing Authority systems (such as CMMS, CADD archival, Propworks, Electronic Document Management, and Public Safety s Computer Aided Dispatch system); procuring GIS software, hardware, and database management tools; preparing data for conversion to the GIS system and for the upcoming Enterprise Resource Planning system. Asbestos Removal, $7,711,000. When asbestos is identified, an abatement contract will be awarded for its removal, drawing on this funding allocation. 175

186 CAPITAL CONSTRUCTION PROGRAM Contaminated Soils Removal/Disposal and Environmental Compliance, $12,659,000. Soils suspected of being contaminated will be sampled and analyzed. If contamination is found, remediation actions may involve disposal of the soil at a statepermitted treatment facility or through on-site reprocessing and treatment. Testing and remediation expenses are drawn against this funding allocation. The project also addresses any remedial environmental compliance action required. Landscaping, $9,534,000. A task order landscape architect will be retained to validate the landscaping standards, and prepare landscaping plans for areas not incorporated in other CCP projects. 176

187 CAPITAL CONSTRUCTION PROGRAM WASHINGTON DULLES INTERNATIONAL AIRPORT Roads North Area Roads Capacity Expansion, $550,000. This project provides for the general planning and programming of road improvement projects. Expenditures under the d2 Program will establish detailed concepts to guide the expansion of public roads in the North Area, especially between Route 28 and the Terminal. North Area Roads Phases II through V, $88,131,000. This project originally authorized in the 2000 Budget for the extension and widening of various local airport roads in the North Area (Phase I) is expanded as a multi-year project. Significant among projects in Phases II through V are those related to transforming the entrance road between Route 28 and Saarinen Circle into a dual-divided highway with improved interchanges and other grade-separations. Local roads also will be improved in conjunction with work on the parking garages, the redevelopment of rental car areas, and the extension of economy parking into North Area parcels that are currently undeveloped. Main Terminal Commercial Curb Expansion, $2,791,000. The Commercial Vehicle Curb will be improved by widening the sidewalks and existing roads, and by adding a third commercial roadway. The project will be coordinated with, and allow for, maintenance of traffic during construction of the landside pedestrian tunnel and, possibly, during advance work on the regional rail system s Washington Dulles Station. Access Highway Widening Pre-Engineering Study, $780,000. The Dulles Access Highway has reserved rights-of-way to accommodate its widening from fourlanes to six-lanes. Staff will develop critical details about the widening, especially on the evolution of the slip ramps to routes through or over the adjacent Toll Road, in order to make informed decisions during the design of Dulles Rail in the median. Access Highway Rehabilitation, $8,761,000. This project will provide for milling and overlay of all four lanes of the access highway from Route 28 to Route 123, exclusive of sections recently rehabilitated. North Area Airside Access Road, $3,475,000. A north airside access road from the service road at Landmark FBO north to existing Radial Road will be constructed. The roadway width is 32 feet, including shoulders and provides an 18 foot wide stub to Runway 1C-19C Hold Apron. The project also includes drainage improvements east of Landmark FBO and a potential gate and guardhouse at Windshear Lane. Buildings Z-Gate Rehabilitation, $39,186,000. The existing Z- Gates at the base of the tower were constructed as temporary facilities and will be demolished in phases due to the construction of various APM and baggage basement projects. Included in this project are the demolition of existing facilities and construction of new passenger holdrooms, restrooms, concessions, airline support space, a new ground vehicle dock area for shuttles to the regional terminal, and other improvements. Building Planning and Programming, $660,000. Studies are required to support capital building projects. Efforts are expected to include siting and programming for an Engineering and Maintenance Complex, concept support and programming for the development of a Tier 2 Concourse, and other facilities. Security Mezzanine and Main Terminal People Mover Station, Package 6 (includes Haul Road), $413,475,000. This project will provide the funds for design and construction of the security mezzanines and Main Terminal APM Station. Also included is the renovation of the South Finger/Tower Area, which will provide improved connections between the Z- Gates, Walkback Tunnel, and the APM. Concourse B Expansion - 4 Gate Addition, $40,295,000. A 440-foot addition to the west side of 177

188 CAPITAL CONSTRUCTION PROGRAM Concourse B will be constructed. The addition will provide holdroom, concession, restroom, and other associated facilities to accommodate three 747 aircraft or as many as seven smaller narrow-body aircraft. Concourse B West Expansion, $114,653,000. This project will provide for a westward extension and the completion of existing Concourse B. Tier 2 Concourse, $732,294,000. Tier 2 will be a 44- gate, three-level structure with a full basement, apron, and concourse that replaces Concourse C and D. Included in the project is a sterile mezzanine corridor with moving sidewalks will be available through approximately one-half of the Tier 2 gates to move international connecting passengers to a Federal Inspection Services hall. A ramp control tower is also an element of this building. New Airport Traffic Control Tower (ATCT)/FAA Facilities, $51,298,000. The existing ATCT was part of the original 1960 s construction of the Airport. Due to the age and condition of the facility and the visibility of a new runway, an ATCT facility at a new location is being constructed. This project will also include site and infrastructure improvements, a support building with vehicular parking and access, utilities, and FAA control and communications requirements. The FAA has also requested that the new ATCT be the catalyst for a major overhaul and replacement of the power and control wiring and cabling between the tower and various lighting, navigation, and communication facilities on the airfield. Costs incurred on these projects will be recovered from the FAA under a reimbursable program agreement that, effectively, has FAA repaying the related Authorityissued bonds. Tier 2 Baggage Equipment, $77,856,000. A zoned baggage distribution system in the basement of Tier 2 will receive and sort bags from the high speed conveyor system from the Main Terminal. An on-line sorting system will be included. This project is deferred. People Mover - Main Terminal to Concourse B (concourse stations, tunnels, system equipment, tug tunnels), $450,445,000. This project allows for the construction of the dual-track People Mover system between the Main Terminal station (to be built in Package 6) and two new stations on Concourses A and B. The concourse stations will be located at the 1/4 points of the Tiers to minimize walking distances to the station. Each station is 200 long by 160 wide by 35 high and will have a center platform for boarding the People Mover train in each direction and two side platforms for exiting the train to the concourse level of the tier. Escalators, elevators and stairs constructed as part of the building will provide the connection between the concourse level of the tier and the station. Each station will be environmentally conditioned with heating and cooling and will be well lit. Between the stations will be two 16 by 18 clear space People Mover tunnels, each containing the People Mover train guideway, a workman s walkway and a fresh air supply and exhaust system. Adjacent to each People Mover train tunnel is a tunnel with a 24 by 18 clear space for emergency egress from the train tunnel and drive ways for baggage tugs and carts to serve the tiers. Concourse B Building Adaptations for the People Mover (East/West), $99,110,000. This project will complete Concourse B above the People Mover after the mobile lounge roads are closed. Vertical circulation and concession space will be included. Concourse B Building Adaptations for the International Arrivals Building (IAB) People-Mover, $44,755,000. This project will construct an IAB People Mover interface and Sterile Corridor for international arrival passengers to move to the IAB People Mover station via a sterile corridor. Construction on this project is deferred. Walkback Tunnel, Tier 1 to Tier 2, $80,233,000. This project will continue the pedestrian tunnel from Tier 1 to Tier 2. The tunnel provides an alternative means, other than the People Mover System, of reaching Tier 2. The tunnel will contain moving walkways in each direction, signage, lighting, a fresh air system and fire 178

189 CAPITAL CONSTRUCTION PROGRAM protection within a finished tunnel. The vertical circulation module to the concourse level of Tier 2 will contain two elevators, two sets of escalators and a stairway. Construction on this project is deferred. High-Speed Conveyor Baggage System (Main Terminal to Tier 2), $76,813,000. An automated baggage handling equipment system between the Main Terminal and Tier 2 will be built. Additionally, modifications will be made to the existing baggage equipment in the Main Terminal. The equipment will include a tilt-tray outbound baggage system, a baggage make up system, a baggage transfer system, and a terminating inbound baggage system. This project is deferred. International Arrivals Building (IAB) People Mover Stations, Tunnels and System, $243,177,000. Arriving international passengers at Washington Dulles are required to be separated from domestic passengers until undergoing processing to enter the United States. Passengers with destinations terminating at Washington Dulles are checked and cleared at the IAB adjacent to the Main Terminal. The dual-track IAB People Mover System will transport international arrivals passengers with final destinations at the Airport from Tiers 1 and 2 to the IAB. Stations will be located at the center of the Tiers. The IAB People Mover System will replace the mobile lounge system as the principal means of transportation to the IAB. Construction on this project is deferred. People Mover Tier 1 to Tier 2 (stations, tunnel and system equipment), $290,499,000. The dual track system will convey air passengers along the east and west alignments from Tier 1 to Tier 2 for aircraft boarding and return to the Main Terminal. People Mover stations will be located at the 1/4 points of the Tiers to minimize walking distances to the station. Each station is 200 long by 160 wide by 35 high and will have a center platform for boarding the People Mover train in each direction and two side platforms for exiting the train to the concourse level of the tier. Escalators, elevators and stairs constructed as part of the building will provide the connection between the concourse level of the tier and the station. Each station will be environmentally conditioned with heating and cooling and will be well lighted. Two 16 by 18 clear space People Mover tunnels will be between the stations, each containing the People Mover train guideway, a workman s walkway and a fresh air supply and exhaust system. Adjacent to each People Mover train tunnel is a 24 by 18 clear space for emergency egress from the train tunnel and driveways for baggage tugs and carts to serve the tiers. Portions of this project are deferred. People Mover - Tier 3 East Increment (non-service), $122,998,000. This segment of the People Mover tunnel will be constructed to the future site of Tier 3 in advance of the Tier 3 Concourse to allow vehicle access to the People Mover Maintenance Facility. People Mover - Maintenance Facility and Service Tunnel, $90,029,000. Maintenance of the People Mover equipment will be conducted in a permanent special facility that will be located south of Tier 3. This project will construct the People Mover Vehicle Maintenance Facility to serve the initial increment of the People Mover System. The facility will contain an area for maintaining and storing the 40-car fleet, specialty equipment needed for maintenance, and the means to introduce newly delivered people mover cars to the system. The maintenance facility is planned to have nine bays. It will be connected to the operational right-of-way via a tunnel segment (estimated as a part of this project) linking to the Tier 3 vicinity. New Engineering and Maintenance Facility Phase I, $5,776,000. This project will be the first phase of design of a new maintenance campus. The project will begin a relocation of existing maintenance facilities to an area of the Airport away from the Main Terminal. Portions of this project are deferred. Maintenance Equipment and Storage Warehouse, $3,340,000. This project allows for the redevelopment of the temporary bag building in the south area as a maintenance equipment and storage warehouse. Work includes the dismantling, relocation, and site utilities. This project is deferred. 179

190 CAPITAL CONSTRUCTION PROGRAM Baggage Conveyor Tunnels to Tier 2, $146,052,000. The baggage tunnel will provide a right-of-way for moving baggage from the central sorting facility in the Main Terminal to Tiers 1 and 2. Baggage movement below grade will also eliminate vehicle and aircraft conflicts (tunnels for baggage carts are included with the people mover project). Construction on this project is deferred. Cargo Building Phase III and 7, $18,182,000. This project constructs Air Cargo Building 7 north of Cargo Building 6. The building will include loading docks, a truck maneuvering area and automobile parking. Dependent on tenant interest and ultimate building configuration, a final, third portion of Cargo Building 6, approximately 27,000 square feet, may be constructed. Portions of this project are deferred. Concourse B West Expansion Basement, $20,581,000. The baggage basement will provide additional baggage basement facilities to accommodate baggage security screening equipment. This basement area will serve ticket counter kiosk 1 of the Main Terminal. Conveyor and Building Changes for Inline Baggage Screening, $238,097,000. In order to satisfy new security requirements at airports, and specifically for checking baggage, there are significant changes to the building structure and space allocation required to accommodate the automated baggage screening systems. This project provides for the design and construction of those changes to building infrastructure. Concourse C/D Rehabilitation, $32,152,000. This project involves the design and rehabilitation of Concourse C/D to effectively extend the useful operating life for an additional 10 years. The project includes three phases: Phase 1 - Design and replacement of rooftop air conditioning units; Phase 2 - Design and construction for general facility refurbishments including exterior and interior repairs and upgrades; electrical upgrades associated with Phase 1 work; plumbing upgrades and repairs; fire protection upgrades; and modifications to the Baggage Conveying system; and Phase 3 - Design and construction of modifications to the Concourse C Federal Inspection Services areas to improve passenger processing and refurbish facilities. Airline Commuter Facilities, $25,766,000. This project modifies existing infrastructure for passenger boarding at Concourse C/D and adds infrastructure to support the development of regional aircraft parking at Hold Apron VI. This project will construct an apron level passenger waiting area facility and a vertical circulation connector building at Concourse C/D. Bus operations will transport passengers from the passenger waiting area at Concourse C/D to Aircraft Parking Apron VI for passenger boarding. Tier 3 East Concourse/Automated People Mover (APM) Station, $547,212,000. $47,500,000 for design work was scheduled in The scope of work includes construction of the Tier 3 facilities east of the new ATCT as well as the architectural, mechanical, electrical, plumbing systems and fire protection components of the build-out of the Tier 3 APM Station. The Tier 3 East facility will include three piers on the south face of the east-west aligned concourse with capacity to support the equivalent of approximately 37 narrow body aircraft while maintaining the flexibility to support the A-380 aircraft (e.g. gate and sterile requirements). Ancillary facilities include a ground control tower, ATCT connector, and mobile lounge docks. Airport AOA Security Cameras, $6,107,000. Security cameras on doors leading to the AOA to provide increased surveillance and control of the secure areas are needed. This project will provide for the design and installation of the surveillance system. Main Terminal Expansion Joint Replacement, $4,670,000. To eliminate water infiltration into the Terminal, replacement of the horizontal and vertical expansion joints at the Main Terminal is necessary. Concourse Modifications for Airbus A-380, $5,917,000. Two gates, associated loading bridges, and other ground support equipment on the B Concourse require modification to accommodate upper 180

191 CAPITAL CONSTRUCTION PROGRAM deck boarding of the A-380 aircraft. This project provides for design and construction of the necessary concourse modifications. Washington Dulles Police Station, $2,050,000. Plan, design and construct an addition to the Washington Dulles Police facility. The planned additional includes more office space, training areas, personnel areas, and other space as needed. The project proposes a 5,097 square feet addition and a 1,800 square feet renovation effort to existing facilities. International Arrivals Building (IAB) Expansion, $184,500,000. This project involves the planning, design and construction of an addition to the IAB. This project will provide additional square footage to the queuing area in the immigration lobby, will increase the number of passport control booths to comply with current Customs and Border Patrol processing requirements and regulations, and will construct new claim devices with a presentation length to assure the optimum baggage holding capacity. The project does not include a sterile tunnel from Concourse B to the IAB nor modifications to Concourse B. Airport Rescue and Fire Fighting Facility Station 304 (includes Roads and Utilities), $20,295,000. This project is for the planning, design and construction of a new fire station. The scope of work includes a facility of approximately 14,000 square feet containing vehicle bays for emergency response equipment, offices, storage, employee living quarters, training facilities, and local command and control. The project includes design and construction of approximately 7,000 linear feet of electrical, communication, sanitary, water, natural gas and other related utilities. Also, included is the design and construction of approximately 13,200 linear feet of airside, facility and landside roadways, and related security fencing, pavement striping and directional signage. The utility infrastructure and road network is in direct support of the New Fire Station 304. This project excludes firefighting equipment. MA-220 Shops 1 Annex, $6,007,000. This project includes the planning, design and construction of spaces necessary to relocate functions currently performed in the MA-220 Shops 1 Annex. The Shops 1 Annex must be demolished to facilitate the expansion of the IAB. Potential relocation options of functions currently performed in the Shops 1 Annex include the utilization of available space in adjacent cargo buildings and/or the postal facility. Consolidated Rental Car Facility (Design), $12,000,000. The project provides for the initial design of a Consolidated Rental Car Facility and associated projects to accommodate 45 million annual passengers. Other associated projects include parking exit plaza relocation, Blue Lot relocation, and utilities. North Area Maintenance Facility, $5,000,000. The project provides infrastructure solutions to improve and/or expand the engineering and maintenance facilities located west of the Saarinen Terminal. Tenant Relocation, $7,262,000. During the course of the CCP at Washington Dulles, costs related to relocation, construction of temporary facilities, modifications to existing facilities, or other actions required to facilitate construction phasing will be incurred by, or imposed on, air carriers and other Airport tenants. A portion of these costs will be reimbursed by the Authority. Airfield Facilities Aircraft Parking Apron VI, $21,359,000. This project includes design and construction of an aircraft apron north of proposed Taxiways E and F, and east of Taxiway Z. The apron will accommodate approximately four wide-body aircraft. Taxiway F, $35,879,000. The Taxiway F project accommodates a full air carrier taxiway crossing from Taxiway K on the east side of the airfield to Taxiway Y on the west side, as well as portions of a future parallel Taxiway E and a fillet widening on Taxiway K3. Taxiway F, located between the proposed Tier 2 and a future Tier 3, will provide aircraft access to these 181

192 CAPITAL CONSTRUCTION PROGRAM new buildings and their associated aprons. The taxiway also provides unimpeded cross-field access between the east and west sides of the airfield thus improving the ground flow of aircraft into and from the aircraft gates at all tiers and reducing aircraft delays. The taxiway will be sufficiently widened to allow future construction of aircraft aprons on either side to proceed without interruption of traffic on the taxiway. Taxiway J Extension, $9,372,000. The departure end and hold apron of Runway 1R are currently accessed by a single parallel Taxiway K. To add redundancy and improve circulation, Taxiway J will be extended approximately 4300 to the south as a second link to the Runway 1R hold apron. The additional access will enhance ground sortation and queuing for air traffic controllers as they maneuver aircraft to the runway threshold, thus improving the rate of aircraft departures. The project will also connect the ARFF roadway to the extended Taxiway J. Connector taxiway stubs will also be constructed for future Taxiways G and H. Fourth Runway and Associated Taxiways, $250,215,000. Aircraft operations have been approaching the nominal capacity of the Washington Dulles airfield system and further growth will cause increasing delays in aircraft departures. The addition of a new runway will alleviate airfield congestion and accommodate traffic growth. This project will provide for the design and construction of a fourth Washington Dulles runway. The project also will include a taxiway parallel to the runway as well as taxiway connections to the existing runway/taxiway system. The runway will be 10,000 feet or more in length, 150 feet wide, with 35 foot shoulders on each side, four highspeed exit taxiways, and entrance/exit taxiways from each threshold. The runway will be equipped with an instrument landing system and associated lighting systems. Tier 2 Apron Paving, $136,764,000. This project will construct aircraft apron paving, drainage, and fuel hydrants associated with Tier 2. This project absorbs and includes funds from the former project, Aircraft Parking Apron VII. A mobile lounge road connection to the Main Terminal may also be included. Portions of this project are deferred. Concourse B Apron Paving, $6,759,000. This project provides for apron paving associated with the completion of the Concourse B West Extension and the mobile lounge road. Tier 3 Apron Paving - Northeast Quadrant, $15,590,000. This project provides for construction of an air carrier apron to serve the northwest side of Tier 3 from the south face of Taxiway F to the north face of Tier 3. An apron and a mobile lounge road will also be constructed. Aircraft will be parked on the constructed apron and passengers conveyed to Tier 3 via mobile lounge service. Hydrant Fueling at Z-Gates, $6,998,000. This project will provide fuel lines and fuel hydrant pits for 14 gate positions. Portions of this project are deferred. Hydrant Fueling for Concourse B West Extension, $4,032,000. This project will relocate 24 fuel pits to accommodate the 12-gate western expansion of Concourse B. Hydrant Fueling for Tiers 2 and 3, $9,476,000. This project will construct jet fuel distribution lines north of Tier 2, connecting to existing fuel lines to form a loop. A loop of new fuel distribution lines will be provided around Tier 3. Demolish Old C/D Concourses, Repave Apron and T/W C/D, $77,103,000. The construction of Tier 2 will require the demolition of existing Concourse C/D which is a two-level (4,000 feet by 90 feet) structure without a basement. The existing pavement surrounding Concourse C/D will be demolished and replaced with air carrier pavement and all abandoned underground utilities removed. Pavement surrounding Concourse C/D will be reconstructed to form a complete apron and taxiway network between Tier 1 and Tier 2. Provision for snow handling and melting will be evaluated; cost effective solutions will be incorporated. Construction on this project is deferred. 182

193 CAPITAL CONSTRUCTION PROGRAM Airfield Pavement Panel Replacement, $51,623,000. This project will reconstruct airfield panels which have deteriorated, replacing them with new pavement of higher aircraft load-carrying capability. A priority of pavement panels to be repaired or replaced will be set annually. Cargo Building 6 Apron - Phase II, $29,000. The project will construct additional air carrier apron parking for cargo aircraft opposite Cargo Building 6. Cargo Building 6 will have apron access along the entire length of the airside portion of the building. The new apron will be 410 feet by 560 feet in size. Cargo Building 7 Apron, $13,246,000. The project will construct additional air carrier apron parking for cargo aircraft opposite Cargo Building 7. The proposed Cargo Building 7 will have apron access along the entire length of the airside portion of the building. The new apron will be 410 feet by 800 feet in size. Deicing Fluid Controls per Heightened Regulations, $9,640,000. This project provides funds to design and begin a phased construction of a facility or system to collect and dispose of aircraft deicing fluid. The project will employ strategies to capture and recover or reduce concentrations of deicing fluid after application to aircraft. An increased environmental concern and closer Federal attention to deicing operations has heightened the awareness and desire to control deicing fluids. Relocate/Expand Airfield Electrical Vaults, $11,775,000. Airfield electrical requirements have increased due to the expansion of the airfield facilities. This project is part of a program to relocate or expand the three airfield electric vaults. Included will be the expansion of Vault 1 to provide electrical capacity needed for the growing demand associated with future airfield runway, taxiway and apron projects. Runway 12/30 Reconstruction, $49,708,000. This project will replace the original 1962 pavement portions of Washington Dulles crosswind runway, which have carried well beyond a normal service life and are showing distresses that are best remedied by a complete replacement of the pavement. In the process, additional drainage features and strength improvements will be added, which will accommodate aircraft much heavier than those estimated in the original design. Taxilane E Rehabilitation, $3,711,000. Taxilane E serves gates on the southern face of Concourse C/D. The taxilane will need pavement rehabilitation to maintain its service life for the immediate future. This project provides for limited full depth reconstruction, linear crack repair, partial depth spall repair, and maintenance of air traffic. Taxiway G $59,064,000. This project provides for planning, design and construction of the cross field Taxiway G to serve the south side of the Tier 3 site. Tier 3 Apron, $86,357,000. This project will design and construct a portion of the future Tier 3 apron and associate drainage and hydrant fueling to be used as aircraft hardstand area until needed for the future Tier 3 Concourse. Airfield Modifications for Airbus A-380, $6,074,000. This project provides for design and construction of two gates, associated loading bridges, and other ground support equipment on Concourse B that require modification to accommodate upper deck boarding of the A-380 aircraft. Future Runway 1C/19C and Future Taxiways W and W1, $140,450,000. This project provides for the planning and design of the reconstruction of future Runway 1C/19C (currently 1L/19R) and the construction of new Taxiways W and W1. The project includes the reconstruction of the runway at 11,500 feet long by 150 feet wide with 10 feet wide shoulders. It also includes the construction of Taxiways W and W1, which are 3,400 feet long by 75 feet wide with 35 feet wide shoulders. The taxiways will connect Runway 1L/19R to future Runway 1C/19C. Noise Monitoring System, $1,000,000. The project replaces and/or upgrades the current noise monitoring 183

194 CAPITAL CONSTRUCTION PROGRAM equipment at Reagan National and Washington Dulles to provide a long-term commitment for monitoring aircraft noise from Reagan National and Washington Dulles flight operations. Rehabilitate Taxiway B Airfield Shoulders, $2,000,000. The deteriorated existing asphalt dust cover along the north shoulder of Taxilane Bravo and Taxilanes A2, A3, A4, and A5 will be replaced. The existing 25 foot-wide dust cover will be replaced with a 35 foot-wide asphalt structural shoulder. Fourth Runway Maintenance Equipment, $8,845,000. This project provides for the purchase of heavy snow removal and grounds maintenance equipment associated with the increased maintenance requirements related to the new fourth runway. Runway 1R-19L Light Base and Conduit Replacement, $4,200,000. This project will replace deteriorating light bases and collapsed conduits on Runway 1R-19L. The project replaces 10,000 feet of conduit, 80,000 feet of cable and 420 light bases. Parking Facilities Main Lot Exit Plaza Expansion, $2,365,000. This project provides approximately four additional exit plaza booths and revenue control equipment in the Main Lot Exit Plaza. This project will also introduce a regional electronic fare payment system and administrative space for a pay-on-foot (pre-pay) customer service. Economy Public Parking: New Lot North of Horsepen Run, $0. This project will construct approximately 4,500 spaces north of Horsepen Run. This will be the first phase of parking at this site and will connect to the Green Lot Economy parking. Economy Public Parking: Relocation of Toll Plaza, $0. This project will construct a parking lot entrance lanes with ticket dispensing machines and exit lanes with cashier booths. The toll plaza will include an express exit lane. A single story administration building for parking lot accounting, administration, and parking lot personnel will be constructed. Employee Parking: South Lot Phase I, $12,754,000. This project replaces an existing employee parking lot to be displaced by the construction of aircraft parking ramp for Tier 2. The parking lot is expandable for continued growth in Airport employees. Construction on this project is deferred. Employee Parking: North Lot Phase II, $4,023,000. This project will expand the North Employee Parking Lot by approximately 1,000 parking spaces. Cargo 7 Public/Employee Parking, $2,205,000. This project will extend Air Freight Lane north beyond the proposed Cargo 7 and provide automobile parking for Cargo 7. This project is deferred. Temporary Parking, $1,161,000. This project will redevelop existing parking/storage areas for public parking. Blue Lot Relocation, $2,563,000. This project will conduct a site investigation and preliminary design for the relocation of the Blue Parking Lot and support facilities to accommodate a future Consolidated Rental Car (CONRAC) facility. This project will investigate the best alternatives and sites for the new Blue Parking Lot to replace some of the lost parking that will occur when the CONRAC facilities are constructed. Utility Systems Communication Facilities and Equipment (F&E) System Integration, $5,080,000. Communication facilities, equipment, and system integration are needed to support the Airport s communications requirements. This includes implementation of a digital network video security system, purchase of controllers, video camera connectivity and transmission, and other equipment as identified by our comprehensive communications plan. Additionally, communication connectivity will be provided to the North and South Remote Employee Lots and the Airside Walkback Tunnel. 184

195 CAPITAL CONSTRUCTION PROGRAM North-South Telecommunications Ductbanks, $3,550,000. The existing direct-buried telecommunication cables extending from the midfield area to the south area of the Airport do not have capacity to serve additional facilities in the south area. This project will construct a ductbank that will provide additional fiber and copper capacity as well as accommodate existing direct-buried telecommunication cables. Utility Systems Planning & Programming, $769,000. These funds will be used to conduct studies as required to support capital utility projects including, a stormwater management plan, and a south area utility building program criteria document. Storm Water Management Facilities, $10,362,000. As additional impervious surface (paving) is added to the Airport, stormwater flowing from these areas must be detained and released to off-airport sites at a rate which does not exceed that which occurred before the paving. This project will construct three new storm water management facilities, one north and two south of the Main Terminal. The facilities are necessary to accommodate new development south of the Main Terminal and to relieve the existing Horsepen Dam storm water facility in the north. Telecommunications Cable Conversion, $2,330,000. This project will convert GTE dial tone service to the Airport Communication System as described in the settlement agreement. Funds will be used to install new circuit cards and so net equipment in Cargo Buildings 1 through 6, Hawthorne s Hangar, Concourses C and D. Standby Power - Terminal Buildings (Design), $846,000. This project will install new standby power generators that will serve the Main Terminal and concourses. The standby power will have the capability of supporting airline functions, security gate check in, FIDS/BIDS, security doors, designated elevators, telephone systems and other loads. South Utility Building, $98,215,000. The existing utility building adjacent to the Main Terminal does not have the capacity to serve Tier 2 or the area to expand capacity. Phase I of the project will construct a 252,000 sq. ft. building to serve Tier 2, and fit out the facility with 10 chillers, 10 cooling towers, and 3 boilers. The building will have a basement, ground floor, a partial third floor mezzanine, and a three stop elevator. Portions of this project are deferred. Dedicated Fire Water Line, $11,787,000. This project will create a fire water system with a storage tank of 6 million gallons, a pump facility (15,000 gallons per minute) to maintain water pressure at the South Utility Building and a fire water distribution system on the Airport. A 24 loop line will be provided around Concourse B and the Main Terminal. North Parking Area Utilities Extension, $7,000. This project will extend utilities north from Rudder Road across the flood plain to the proposed economy parking lot north of the flood plain. Rental Car Area Utilities Upgrades, $2,013,000. This project will extend utilities to the proposed consolidated rental car facility. This project is deferred. Utility Tunnel West Utility Building Tunnel, $103,327,000. Tier 2 and all future tiers south of Tier 2 will be supplied with heating and cooling from the new South Utility Building. The utility tunnel will contain the heating and cooling piping for Tier 2 and future tiers. A workman s walkway will be included in the tunnel along with a fresh air circulation system, lighting and a fire suppression system. A similar tunnel will be constructed between the existing North Utility Building and Concourses A and B. South Electrical Substation and Distribution Center, $16,595,000. A new electrical substation with a separate supply from Virginia Power is required to meet the demand of new development south of Concourse B. South Area Utility Trunk Lines, $10,177,000. This project will provide utility service to new facilities in the south area of the Airport. Sewer, water and gas 185

196 CAPITAL CONSTRUCTION PROGRAM lines will be extended from near the new ARFF station to the new south utility plant and then north near Taxiway J to just east of Tier 2. Tier 2 and subsequent development will then connect to these lines for utility service. South Area Utility Distribution and Tie-ins, $1,090,000. This project will connect the existing south area Authority buildings to utility lines which are proposed as part of the new ARFF station. Public Utility Taps - Fees and Coordination, $2,297,000. This allowance will cover connection fees associated with new service provided by local utilities. Expanded Water Storage, $4,407,000. This project will provide a new domestic water system for the development south of Concourse B. The water supply at the new ARFF station will supply the two million gallon storage facility and pump facility at the South Utility Building. This water will be distributed to new facilities via a water line parallel to Taxiway J terminating at Tier 2. Special Systems - Tie-ins and Upgrades, $14,744,000. Communication facilities, equipment, and system integration are needed to support the Airport s communications requirements. This includes construction of ductbanks, purchase of switches, connectivity for data transmission, premises distribution systems, and other equipment as identified by our comprehensive communications plan. Cargo 7 Site Utilities, $813,000. Utilities including water, sewer, power, and communications will be extended north from Cargo 6 to Cargo 7 within the Air Freight Lane right-of-way. Jet Fuel Pipeline Fuel Settling Tank Farm, $78,154,000. To accommodate the extension of a jet fuel pipeline to the Airport to increase the supply and storage of jet fuel, planning, design and construction of on-airport facilities are required. Public Safety Radio Compatibility Project, $900,000. This project funds the upgrade of radios and other equipment to meet project 25 (p25) standards. Project 25 addresses the needs of common digital public safety radio communications standards for first responders and Homeland Security/Emergency Response professionals, which allows for a high degree of equipment interoperability and compatibility. Domestic Water Pump System Renovation, $670,000. In order to adequately meet water demands and fire protection requirements for the North Area Facilities at Washington Dulles, the pressure capability and system operability will be upgraded. Radio Program Upgrades, $14,829,000. This project will provide enhancements to the 800MHz radio system. The following are included: new tower site selection and construction, additional talk channels, purchase of elite dispatch consoles, system management terminal and software, and other improvements. Main Terminal HVAC Commissioning Phase 2, $3,630,000. Provides for the final phase of the Main Terminal s HVAC system testing and commissioning with the completion of last major construction projects. Includes the functional performance tests, commissioning plan, duct and filter repairs necessary for balancing, testing and balancing, operation and maintenance instructions and a final commissioning report. Maintenance Equipment Storage Building, $2,000,000. This project provides for the construction of an additional equipment maintenance building to store and maintain the additional equipment associated with the new fourth runway. Gate 313 Sanitary Sewer Connection, $1,215,000. Project provides for a sanitary sewer connection from security Gate 313 and the south construction trailer complex to the existing Stallion Branch Sanitary Sewer line. 186

197 CAPITAL CONSTRUCTION PROGRAM Land Site Development for Commercial Hangars, $109,379,000. This funding provides for clearing, grading, site utilities, and site access in undeveloped areas. These areas are remote from current development and include an allowance for property enhancements. Right-of-Way Easements for Capital Expansion, $1,149,000. This allowance is to acquire right-of-way easements associated with the extension of utility lines to connect to local utility providers. Other Other Planning and Programming, $12,680,000. The planning and programming phase of a project implementation process will define the major elements of the project; provide a refined project cost; coordinate the project with users, airport operators, Federal and other regulatory agencies; prepare budget items; and prepare a document to summarize the information to begin the project design phase. Planning and programming will be accomplished for the following categories of projects: airfield, building, road, utility, and parking. Aerial Topographic Survey, $1,083,000. This project will purchase aerial topographic mapping of the entire Airport. Comprehensive Airport Security System Study, $16,767,000. This project will replace the closed circuit television system and the identification control system. Wetlands Mitigation Program, $26,248,000. Wetlands are a valuable feature of the ecology as defined by State and Federal laws and regulations. Wetlands taken during construction must be mitigated by replacement in kind or in a greater amount. This project will identify wetlands on Airport property and determine the impact to wetlands by the construction project. Asbestos Removal - Beyond Stages I and II, $3,017,000. Asbestos is known to exist throughout Washington Dulles facilities constructed prior to When asbestos is identified by the asbestos consultant, an abatement contract will be awarded for its removal. Contaminated Soils Removal/Disposal - Beyond Stages I & II, $8,916,000. When a contractor encounters soil suspected of being contaminated, samples will be taken and analyzed. If contamination is found, the general procedure is to dispose of the soil at a state permitted treatment facility or accomplish on-site remediation. Airport Landscape Renovations and Expansions - Phase I, $2,000,000. This project will replace existing landscaped areas that were disturbed during construction as well as creating new landscaping areas. Temporary Facilities for Phasing, $9,389,000. This project makes provisions for events which require that temporary facilities be provided to maintain airline and airport operations. Contractor Staging Area, $10,024,000. The CCP contains a significant number of major construction projects to be accomplished in the prescribed time. Each construction contractor will require an area to store material necessary for the project completion as well as the administrative support areas required for project management. A semi permanent contractor staging area of approximately 60 acres partially paved, lighted and fenced is necessary to support construction activity of contractors. Enterprise Resource Program, $29,044,000. An Authority-wide Enterprise Resource Planning System will provide a comprehensive integrated system encompassing core administration functional areas and link business processes, integrates data, and share data information across applications and with users. Access Control and Monitoring Systems, CCTV and Video Monitoring System Integration, $6,150,000. This two phase project initially designs and constructs 187

198 CAPITAL CONSTRUCTION PROGRAM a new Video Management System to replace the existing. The second phase provides for the integration of the Access Control and Alarm Monitoring System (ACAM) with the Closed Circuit Television (CCTV) and Video Management (VM) System and establishes a dedicated security network. Presently these three systems operate independently and do not allow of 100% resolution of door alarms as dictated by the TSA. The integration of these systems and the establishment of a dedicated security network will create the resolution required at the Reagan National Dispatch Center (and future CCC) for the majority of the door alarms at Washington Dulles, and significantly reduce the requirement to dispatch personnel to a door when a false breach of security occurs. Geographical Information System (GIS), $4,408,000. Design and implement the GIS for both Washington Dulles and Reagan National. Implementation in 2006 will involve refining system requirements, defining system interfaces with existing Authority systems (such as CMMS, CADD archival, Propworks, Electronic Document Management, and Public Safety s Computer Aided Dispatch system); procuring GIS software, hardware, and database management tools; preparing data for conversion to the GIS system and for the upcoming Enterprise Resource Planning system. Asbestos Removal, $3,092,000. Asbestos is known to exist throughout Washington Dulles facilities constructed prior to When asbestos is identified by the asbestos consultant, an abatement contract will be awarded for its removal. Contaminated Soils Removal/Disposal and Environmental Compliance, $4,868,000. When a contractor encounters soil suspected of being contaminated, samples will be taken and analyzed. If contamination is found, the general procedure is to dispose of the soil at a state permitted treatment facility or accomplish on-site remediation. The project also addresses any remedial environmental compliance action required. Permanent Sign System, $10,141,000. During the construction period of this program, new cargo facilities, public parking lots and roadways signage will be installed at the Airport. Wayfinding to the new facilities will be improved by replacing the existing sign system to list for new destinations and to account for the increasing complexity of the Airport. Signage within the Main Terminal and Tiers will also be changed to reflect improvements to the passenger boarding facilities. Environmental Mitigation (Wetlands and Stream), $7,000,000. Wetlands are a valuable feature of the ecology as defined by State and Federal laws and regulations. Wetlands taken during construction must be mitigated by replacement in kind or in a greater amount. This project will identify and address unknown wetlands and streams on airport property and determine the impact to wetlands and streams by the construction project. Contribution to Dulles Metro Rail, $205,813,000. The Authority s contribution to the Dulles Rail Metro project. The funding for the rail project will come from passenger facility charges (PFCs) and expenditures are not projected to occur until

199 DULLES CORRIDOR OPERATION AND MAINTENANCE The Dulles Corridor Operation and Maintenance Program (O&M) is the financial plan for operating the Dulles Toll Road, including reserve requirements. The O&M program is funded from toll road revenue. DULLES TOLL ROAD DESCRIPTION The Metropolitan Washington Airports Authority (Airports Authority) and the Virginia Department of Transportation (VDOT) concluded negotiations for a 50-year lease of the Dulles Toll Road (Toll Road) and Dulles Connector Road (Connector). The terms of the lease can be found in two documents: The Dulles Toll Road Master Transfer Agreement and the Dulles Toll Road Permit and Operating Agreement, both dated December 29, These documents reflect the two agencies understanding and agreements with respect to the transfer of rights to operate, finance and maintain the Toll Road to the Airports Authority and certain related matters for the purpose of financing the construction of the Dulles Corridor Metrorail Project and other transportation improvements in the Dulles Corridor. The Agreements can be found on the Airports Authority s website As a part of this transaction and as stipulated in the Dulles Toll Road Permit and Operating Agreement, the Airports Authority will establish segregated accounts, management and operational functions, where appropriate, for the operations of the Toll Road. This segregation of operational functions, as well as, the asset management and improvement responsibilities, and contract obligations require that the Airports Authority budget, appropriate and expend funds in particular manners. Specifically, all toll revenues shall be budgeted and used solely to pay, in the following order of priority, (i) debt service and other amounts payable under any Toll Road financing documents (including, without limitation, swaps, reimbursement agreements, commercial paper or any other similar products or any scheduled TIFIA debt), together with deposits to any reasonable cash reserves or escrow accounts in respect thereof; (iii) all deposits in respect of the Renewal and Replacement Program and costs of the renewal and replacement work incurred during such year not funded from the renewal and replacement reserves; (iv) all costs and expenses of constructing any capital improvements required to be paid during such year not paid from proceeds of Toll Revenue Bonds; (v) capital costs of the Dulles Corridor Metrorail Project then due and payable and not otherwise paid or reasonably expected to be paid from proceeds of the Toll Revenue Bonds, including the funding of a reasonable cash reserve in an amount not to exceed $10 million plus any accrued interest earnings thereon for costs associated with remedying any latent defects related thereto, all in accordance with the Washington Metropolitan Area Transit Authority (WMATA) Agreement; (vi) eligible costs and expenses for transit operations within the Dulles Corridor; and (vii) all remaining Toll Revenue shall be paid to the Commonwealth for allocation by the Commonwealth Transportation Board (CTB) for transportation programs and projects that are reasonably related to or benefit the users of the Toll Road. The Dulles Toll Road Operation and Maintenance Budget will be prepared and funds allocated for performing all toll collection (cash and electronic toll collection), administrative, customer service, violation enforcement public safety and incident management activities. For major asset repair and rehabilitation for the Toll Road a Renewal and Replacement Program is established to fund various projects necessary to keep the toll operation in proper maintenance and operational condition. A Capital Improvement Fund is established for major roadway and operational improvements; and a Transit Operations Fund to support transit activity within the Dulles Corridor. The Dulles Toll Road, also known as Route 267 and the Omer L. Hirst Adelard L. Brault Expressway, is an eight-lane, divided, controlled access roadway, approximately 11.5 miles in length and extends from a point just west of Sully Road (Route 28) in Loudoun County to the Capital Beltway (I-495) in Fairfax County. The Dulles Toll Road facilitates commuter and commercial traffic throughout the Dulles corridor, and runs alongside (parallel to) the Dulles International Airport Access Highway (Access Highway). The Access Highway is operated and maintained by the Airports Authority and is a four- 189

200 DULLES CORRIDOR OPERATION AND MAINTENANCE lane, divided, limited access roadway which is to include portions of the future Dulles Corridor Metrorail. In both the eastbound and westbound directions and at each end of the Toll Road, there are a total of 61 toll collection points, consisting of attended lanes, automatic coin machine lanes, and electronic toll collection (Smart Tag-capable lanes). The tolling configuration consists of two mainlane (one eastbound and one westbound) toll plazas and 18 ramp plazas. There are 33 full service lanes, 19 exact change lanes, and 7 dedicated Smart Tag only lanes and 2 bus toll lanes. At the westbound mainlane toll plaza on the east end of the Toll Road, there is an administration building that houses various tolling systems and administrative personnel. Tolls are collected in a screen-line fashion, i.e. patrons are required to pay a discrete toll at each plaza. The Connector is a four-lane, divided, limited access roadway, approximately 4.5 miles in length and extending from the Capital Beltway (I-495) to I-66. It is a combined facility acting as an extension of the Access Highway and a spur of I-66 providing access to and from I-495 and I-66 east of the Capital Beltway. Tolls for the Dulles Toll Road are collected through both cash and electronic methods. The Electronic Toll Collection (ETC) System is comprised of six major subsystems:! A Radio Frequency Identification (RFID) Automatic Vehicle Identification (AVI) system, called Smart Tag;! Two vehicle detection and classification systems;! A coin collection system using Automatic Coin Machines (ACMs);! A toll attendant interface system;! A Violation Enforcement System (VES); and! A database host. The Smart Tag system is installed in all toll collection lanes, seven of which are dedicated Smart Tag only lanes. The equipment is interoperable with the E-Z Pass system used by surrounding states for ETC. Toll revenues will be used to pay all operations and maintenance expenses of the Toll Road and the Connector and to fund the various reserve and debt service funds. The Airports Authority will contract with the VDOT to provide toll and maintenance operations to include snow and ice removal during the transition period which commences on the transfer date and up to 365 days after award of the FTA fullfunding grant agreement for the Metrorail Project. Under the control of the VDOT, the Dulles Toll Road used a combination of contractors and VDOT employees to operate the Toll Road. Contractors are being used to provide toll attendants and a customer service center, and to maintain the toll equipment. To facilitate the assumption and management of the VDOT contract and the Toll Road, the Airports Authority anticipates hiring new employees to directly manage the various contracts and operations. Additional staff and staff allocation for support services such as legal, human resources, financing, accounting, human resources, and IT have been included in the personnel cost of this budget. Prior to the termination of the transitional period, the Airports Authority will begin to execute various procurements to provide the required services and to have those contracts in place. Toll and roadway maintenance will be performed initially by VDOT, including routine toll and roadway maintenance expenditures for common services as toll software and hardware maintenance, pavement striping and signing repair, guardrail and attenuator repairs, plaza repairs and janitorial services, roadway sweeping, litter pick-up are also included. The Renewal and Replacement Fund is established for identified rehabilitation and major repairs for the Toll Road such as pavement overlays, new toll collection equipment, bridge and sound wall repairs, etc. The Renewal and Replacement Program is a five year program, budgeted annually. The Capital Improvement Fund is for major capacity improvements and transportation projects. These 190

201 DULLES CORRIDOR OPERATION AND MAINTENANCE projects usually consist of additional lanes, major overpasses and intersection projects. Two major initiatives that the Airports Authority plans to pursue in this upcoming budget year, is a motorist assistance program and total routine maintenance contract. The motorist assistance program, also known as courtesy patrol, will provide minor vehicle breakdown services, such gas refills, flat tire changes, towing, to stranded motorists within the Corridor. 191

202 DULLES TOLL ROAD AND CONNECTOR STATEMENT OF OPERATIONS BUDGET 2008 OPERATING REVENUES Electronic Toll Collection (ETC) Toll Revenue $50,836,000 Cash Toll Revenue 25,039,000 Transfer to Other State Agency - Indirect Cost 0 SUBTOTAL TOLL REVENUE 75,875,000 Violations Fee Collections 2,000,000 Concessions 0 SUBTOTAL OTHER INCOME 2,000,000 TOTAL OPERATING REVENUES $77,875,000 OPERATING EXPENSES Personnel Compensation and Benefits $896,000 Other Personnel Expenses 42,000 Travel 4,000 Lease and Rental Payments 12,000 Utilities 37,000 Information Technology and Telecommunications 33,000 Services 20,772,000 Supplies, Materials, and Fuels 28,000 Insurance and Risk Management 1,000,000 Noncapital Equipment 20,000 Capital Equipment 50,000 Noncapital Facility Projects 0 Capital Facility Projects 0 TOTAL OPERATING EXPENSES $22,894,000 NET OPERATING INCOME $54,981,000 NONOPERATING REVENUE Interest Income $1,339,000 Other Capital Contributed 0 Investment Income on Capital Contributed 0 TOTAL NONOPERATING REVENUE $1,339,000 NONOPERATING EXPENSES Renewal And Replacement Program $3,270,000 Corridor Capital Improvements (Transportation Management Program) 0 Metrorail Capital Projects & Latent Defects 0 Eligible Transit Operating Costs 0 SUBTOTAL NONOPERATING EXPENSES 3,270,000 DEBT SERVICE Debt Service (Principal/Interest)/Reserve 29,308,000 TOTAL DEBT SERVICE $29,308,000 RESERVE CONTRIBUTIONS Operations and Maintenance Reserve $8,548,000 Renewal and Replacement Reserve 8,548,000 Corridor Capital Improvements Reserve 0 Eligible Transit Operating Costs Reserve 6,645,000 WMATA Latent Defects Reserve 0 Contingency Reserve 0 TOTAL RESERVE CONTRIBUTIONS $23,742,000 NET INCOME $0 192

203 DULLES CORRIDOR ENTERPRISE NEW POSITIONS AND DESCRIPTIONS 2008 BUDGET NEW DULLES CORRIDOR ENTERPRISE POSITIONS DULLES CORRIDOR Office Level MA # Position Dulles Corridor S-21 1 Safety Manager S-22 1 Contracting Officer S-22 1 Internal Auditor S-22 1 Engineering Project Manager S-25 1 Vice President Corridor Operations S-22 1 Dulles Toll Road Manager S-19 2 Toll Reconciliation Specialist 8 193

204 DULLES CORRIDOR ENTERPRISE NEW POSITIONS AND DESCRIPTIONS DULLES CORRIDOR Safety Manager, S-21. This position manages the Dulles Corridor safety program for the Authority, carries out risk assessment and site safety plans, and trains the work force in occupational health and safety. Job duties may include but are not limited to enforcing safety policies and procedures, the development and implementation of safety plans, and review and evaluation of incidents and potential safety hazards. Contracting Officer, S-22. The contracting officer will manage a wide variety of procurement activities including preparation of advertisements preparing requests for qualifications and requests for proposals, and monitoring contract activity. A portion of the contracting officer s time will be allocated to Metrorail projects. Dulles Toll Road Manager, S-22. The Dulles Toll Road manager will coordinate 911 operations related to the Dulles Toll Road. Duties and responsibilities may include managing daily tollway operations, effectively working with other departments within the Airports Authority, estimating and implementing an annual budget, and administration of a roadway management contract. Toll Reconciliation Specialist (2), S-19. The toll reconciliation specialists will coordinate audits and other toll reconciliation responsibilities related to compliance, financial reporting, and toll operations. Responsibilities include coordinating and supervising toll reconciliation staff, effectively working with customer service center staff, and organizing, assimilating and reconciling large amounts of data. Internal Auditor, S-22. The internal auditor position provides a full range of financial, compliance, and operational audits, business advisory and consultation services, investigations, internal control structures, accountability, and use of resources. Work is performed within policies included in state and federal law and administrative regulations with latitude for the exercise of independent judgment and subject to periodic review on the basis of results achieved. A portion of time will be allocated to Metrorail projects. Engineering Project Manager, S-22. The engineering project manager will manage the development and implementation of the Capital Improvement Program and Renewal and Replacement Program for the Dulles Toll Road. Duties and responsibilities may include project design, project management, project delivery, and quality management. Vice President Corridor Operations, S-25. The vice president of corridor operations will provide overall direction and guidance to the operational activities of the Dulles Corridor including day-to-day leadership and management to all Dulles Corridor operations functions. 194

205 DULLES CORRIDOR RENEWAL AND REPLACEMENT PROGRAM PROJ NUM DESCRIPTION FUND CARRY- OVER BALANCE 2008 PROGRAM CARRY-OVER & 2008 PROGRAM ESTIMATED EXPENDITURES BRIDGE AND STRUCTURAL REHABILITATION Bridges, Structures and Canopy Repairs 0 500, , ,000 Joint Replacement and Repair 0 100, , ,000 Bearing Replacement 0 50, ,000 50,000 Subtotal Bridge and Structural Restoration 0 650, , ,000 SOUND WALL REPAIR Repair of Sound Walls (3000 LF) 0 350, , ,000 Subtotal Sound Wall Repair 0 350, , ,000 ROADWAY AND PAVEMENT REHABILITATION Dulles Toll Road Mainlane Pavement Repairs 0 500, , ,000 Subtotal Pavement Resurfacing 0 500, , ,000 ROADSIDE Guardrail, Traffic Barrier, and Fencing Rehabilitation 0 100, , ,000 Attenuator Rehabilitation 0 150, , ,000 Subtotal Signs 0 250, , ,000 SIGNING AND LIGHTING Authority Identification Signage 0 150, ,000 0 Roadw ay Sign Replacement and Rehabilitation 0 300, , ,000 Street/Plaza Lighting Rehabilitation 0 70, ,000 70,000 Sign Lighting 0 100, , ,000 Subtotal Signing and Lighting 0 620, , ,000 ROADWAY MAINTENANCE High Impact Maintenance 250, , ,000 Subtotal Roadw ay Maintenance 0 250, , ,000 TECHNOLOGY Slip Ramp Gates 0 250, , ,000 Subtotal Technology 0 250, , ,000 OPERATIONAL STUDIES Corridor Safety Study 0 200, ,000 0 Toll Security Study 0 200, ,000 0 Subtotal Operational Studies 0 400, ,000 0 Total Dulles Corridor 0 3,270, ,270,000 2,320,

206 DULLES CORRIDOR RENEWAL AND REPLACEMENT PROGRAM The Renewal and Replacement Program for the Dulles Toll Road addresses major maintenance requirements including overlays, sound wall repairs, bridge deck replacements, erosion and drainage control, and other routine maintenance projects. The Renewal and Replacement program is funded from toll road revenue. The 2008 estimate for the Renewal and Replacement Program new program authorization is $3.3 million. BRIDGE AND STRUCTURAL RESTORATION PROJECTS Bridges, Structures and Canopy Repairs The Dulles Toll Road has a total of 39 structures that are maintained and classified as bridges. Along with the 39 structures is the Dulles Toll Road Connector as well as, 11 culverts, 22 plazas with associated structural canopies and 27,456 feet of retaining walls. Bridges and structures are inspected on a scheduled basis (every two years) and are assigned a rating signifying the conditions of the structure. Canopy structures are generally inspected each year during the annual asset inspection. This project will provide for the repair of various structural components: bridge substructure concrete repair, bridge deck repair and resurfacing, and backwall, culvert repair and railing repair as well as associated canopy structure and roof repair. Budget Estimate: $2,100,000 ($500,000/2008 and $400,000/2009) Project Duration: Annual (5-year planning period) Starting Budget Year: 2008 Benefits: Immediate safety needs and asset preservation Joint Replacement and Repair This project will provide for the replacement and/or repair of armored joints on the bridges. Sealing of the joints on bridges has been shown to be a proven method of corrosion prevention in regions where salt is used during winter operations. The scope of work includes: the Dulles Connector Road over Pimmit Run Creek, Magarity Road and Chain Bridge Road, and Dulles Connector Road over Route 123. Budget Estimate: $200,000 ($100,000/year) Project Duration: Project can typically be performed in one construction season. Multiple bridges can be worked on simultaneously to take advantage of lane closings. Starting Budget Year: 2008 Benefits: Safety and preservation of bridge superstructure and substructure from salt damage Bearing Replacement This project will provide for the replacement of bridge bearings to assure the performance of bridge structures as designed. This work can be phased over multiple years and is usually done by a specialty contractor. Traffic maintenance will be a significant item of work, as this work may involve the temporary closing of lanes during shoring operations. This work can be accomplished at night. Budget Estimate: Project Duration: $100,000 ($50,000/year) Project can typically be performed in one construction season. Starting Budget Year: 2008 Benefits: Bridge performance SOUND WALL REPAIR Repair of Sound Walls (repairs for approximately 3,000 feet) The Dulles Toll Road has approximately 40,000 feet of sound walls. Sections of the sound walls throughout the corridor have had panels removed and wood panels put into place due to unstable foundation issues that are present. For those sound wall segments that are 196

207 DULLES CORRIDOR RENEWAL AND REPLACEMENT PROGRAM showing significant damage, specifically those with erosion at the foundations, a repair program needs to be put into place to ensure the stability of the sound walls. Budget Estimate: $700,000 ($350,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: Safety, aesthetics, good neighbor ROADWAY AND PAVEMENT REHABILITATION Dulles Toll Road Mainlane Pavement Repairs The westbound pavement east of I-495 is in poor condition with varying amounts of pavement distress to include alligator cracking and raveling in the mainlanes. Pavement sections of VA 267 Spur also contain varying amounts of alligator cracking in the mainlanes with the westbound lanes east of I-495 with the highest and most severe amount. This project will provide for the repair of mainlane pavements that do not meet roughness requirements after the resurfacing or exhibit failure due to poor pavement conditions and potholes. This work consists of small sections of pavement repairs which could result in milling and resurfacing operations. Traffic maintenance will be a significant item of work. Work needs to be planned with adequate timeframes for shifting traffic; therefore the size of projects will be determined by the quantity of work that can be accomplished within the year. Budget Estimate: $800,000 ($500,000/2008, $300,000/ 2009) Project Duration: Project can be performed in one construction season. Starting Budget Year: 2008 Benefits: Safety and pavement preservation ROADSIDE Guardrail, Traffic Barriers, and Fencing Rehabilitation Various guardrails, cable fencings and traffic barriers as well as those items as required and identified by VDOT Safety Orders will be replaced or added. Fencing may be added/modified to remove hazards or increase security. Budget Estimate: $200,000 ($100,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: Safety Attenuator Rehabilitation Many of the attenuators at the toll booths and plazas may not be able to handle a high speed (60 mph) impact. This will be essential should the Airports Authority transition to Open Road Tolling/Express Lanes will be implemented. This project will add lane delineation to increase the safety on the system by limiting lane changes at decision points near the toll booths. Budget Estimate: $300,000 (150,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: Safety SIGNING AND LIGHTING Authority Identification Signage Immediate signage changes such as at the Administration Building will be required to convey to the public the agency responsible for the overall management and operation of the Dulles Toll Road. Other logo sign changes will include logos present on equipment and vehicles and other VDOT designated signage throughout the corridor. Budget Estimate: $150,000 Project Duration: 6 months 197

208 DULLES CORRIDOR RENEWAL AND REPLACEMENT PROGRAM Starting Budget Year: 2008 Benefits: Aesthetics, consistency and identification of responsible agency. Roadway Sign Replacement and Rehabilitation Budget Estimate: $200,000 ($100,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: Safety, aesthetics, and consistency Overhead and ground mounted signs throughout the DTR corridor are deteriorating due to age and weather conditions as well as being damaged from vehicular impacts. With the introduction of more modern materials, the life of the signs can be increased through replacement. This project is necessary to maintain the directional and informational standard for the current signage and provide for more efficient passage of the traveling public. Budget Estimate: $500,000 Project Duration: 18 months Budget Year: 2008 replace missing/damaged signs ($300,000) and 2009 Sign replacement ($200,000) Benefits: Safety, aesthetics, and consistency Street/Plaza Lighting Rehabilitation Light poles, will be replaced with higher intensity lighting commonly used at decision points (merging zones, exits, toll areas, etc.) in order to increase the driver s awareness of these decision areas. Budget Estimate: $140,000 ($70,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: afety, aesthetics, and consistency Sign Lighting Various lights are not working on some of the overhead signs. Additionally, higher intensity lighting is commonly used at decision points to increase the driver s awareness of these decision areas will be added. 198

209 DULLES CORRIDOR RENEWAL AND REPLACEMENT PROGRAM ROADWAY MAINTENANCE High Impact Maintenance A number of aesthetic elements such as landscaping, bushes and trees will be replaced. Preventative maintenance on the roadway including: landscaping, mowing, graffiti removal, turf maintenance, etc., will also occur. Budget Estimate: $500,000 ($250,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: Aesthetics, consistency, and safety Toll Security Study A security study is recommended to ensure that all money collected is accounted for. The Study would involve auditing the toll transactions and physical observation of the toll collecting activity. The recommendations may result in changes to the toll collection process. This project also includes the purchase of various security related items. Budget Estimate: $200,000 Project Duration: 6 months Starting Budget Year: 2008 Benefits: Work environment and revenue generation TECHNOLOGY Slip Ramp Gates Various slip ramp gates that are used between the toll road and the access road will be repaired or replaced. Budget Estimate: $500,000 ($250,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefits: Traffic improvements OPERATIONAL STUDIES Corridor Safety Study A study on all of the safety elements of the roadway including a review of: guardrail, attenuators, fencing, traffic barriers, edge drop offs, curbs, shoulders, lighting, signage, and clear zones will be performed. The study would identify safety issues and recommend improvements as needed. The study would not include pavement friction testing. Budget Estimate: $200,000 Project Duration: 6 months Starting Budget Year: 2008 Benefits: Safety and due diligence 199

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211 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM The Dulles Corridor Capital Improvement Program funds Dulles Corridor Capital Improvements related to the Dulles Toll Road, its ancillary ramps and interchanges, and the Dulles Rail Project. The Capital Improvement Program is funded from bond proceeds, Federal Transit Administration grant, and contributions from Fairfax County and the Commonwealth of Virginia. The 2008 estimate for new program authorization is $226.9 million. DULLES CORRIDOR METRORAIL PROJECT OVERVIEW The Airports Authority in cooperation with the Virginia Department of Rail and Public Transportation (DRPT), the Washington Metropolitan Area Transit Authority (WMATA), Fairfax County and Loudoun County is planning to construct a 23.1-mile transit system in the rapidly growing Dulles Corridor in Fairfax and Loudoun counties, Virginia. The Dulles Corridor is home to several of the Washington D.C., metropolitan region's most dynamic and rapidly growing activity centers, including Tysons Corner, the Reston-Herndon area, Dulles International Airport and the emerging activity centers in eastern Loudoun County. The purpose of Dulles Corridor Metrorail Project (the Project) is to provide high-quality, high-capacity transit service in the Dulles Corridor. New Metrorail service in the corridor will result in travel time savings between the corridor and downtown D.C., expand the reach of the existing regional rail system, offer a viable alternative to automobile travel and support future development along the corridor. The Project extends the existing Metrorail system from the East Falls Church station on the Orange Line in Fairfax County through Tysons Corner to Washington Dulles International Airport and beyond the airport to Route 772/Ryan Road in Loudoun County. Service on the new Metrorail line will continue from stations in the Dulles Corridor onto the existing Orange Line tracks and serve the Orange Line stations from East Falls Church through Arlington County and into Washington D.C., to the Stadium- Armory Station. Most of the extension will be constructed in the median of the Dulles Access Highway and Dulles Connector Road, but the alignment also serves Tysons Corner and Washington Dulles. The extension includes 11 new Metrorail stations, a new rail yard on Washington Dulles property and improvements to an existing rail yard at the West Falls Church Station. This alignment was selected because it offers the highest ridership potential with the fewest impacts on residential areas and the natural environment. A Draft Environmental Impact Statement (Draft EIS) for the Project was completed in June This Draft EIS evaluated several alternatives, including three Bus Rapid Transit (BRT) options, a combined BRT/Metrorail alternative and a full Metrorail extension. Public hearings on the Draft EIS were held in July Based on extensive public comments and input from local jurisdictions, the full extension of Metrorail was recommended as the preferred option or the Locally Preferred Alternative. This Dulles Corridor Metrorail Project was approved by the WMATA Board of Directors in November 2002 and the Commonwealth Transportation Board (CTB) in December The Project was also endorsed by the Fairfax County, Loudoun County and Airports Authority Boards. Following these approvals, a Final EIS was published in December 2004 and the FTA issued its Record of Decision approving the environmental process in March Following and environmental assessment of design refinements made during preliminary engineering, an amended record of decision was issued by FTA in November Preliminary engineering was completed in April 2006, and supplemental engineering work is currently underway. The Airports Authority expects to receive approval to enter final design from FTA in early The Airports Authority seeks to receive a full funding grant agreement for the Project in April

212 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM Construction on the Wiehle Avenue Extension (Phase 1) is expected to begin in early 2008, with utility relocation activities beginning in fall Phase 1 will branch off the Orange Line just beyond East Falls Church Station, go through Tysons Corner (4 stops), and terminate at Wiehle Avenue (1 stop) in Reston. It is scheduled to begin revenue operations by The total project cost of Phase 1 is estimated to be $2.595 billion. Phase 1 is expected to receive a fixed contribution of $900 million in New Starts funding from the Federal Transit Administration. Fairfax County will provide a fixed contribution of $400 million for Phase 1. The Commonwealth will provide $51.7 million in VTA 2000 revenues toward the cost of Phase 1. The remaining funds, estimated to comprise 48% of the Phase 1 project cost, will be provided by the Airports Authority through a combination of bonds and a TIFIA loan secured by Dulles Toll Road revenues. Preliminary engineering for Phase 2 has been completed to the 65% level and is expected to resume in early Phase 2 construction is likely to begin in Phase 2 will extend the Metrorail from Reston and Herndon to Washington Dulles and into eastern Loudoun County. It is scheduled to be completed by

213 DULLES CORRIDOR ENTERPRISE - CAPITAL IMPROVEMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY FUNDING PROJ SOURCE/ NUM DESCRIPTION REQUIREMENT ORIGINAL BUDGET REVISED BUDGET CARRYOVER 2008 NEW PROGRAM TOTAL EXPENDITURES EXPENDITURES RAIL RAIL PHASE I Guideway and Track Elements Bonds $222,576,500 $326,514,000 $326,514,000 $0 $326,514,000 $0 $65,817,000 $176,826,000 $83,871,000 Guideway and Track Elements FC 113,226, ,226, ,226, ,226, ,462,000 52,321,000 35,443,000 Guideway and Track Elements VTA 3,439,000 3,439,000 3,439, ,439, ,439, Guideway and Track Elements FTA 213,738, ,738, ,738, ,738, ,852,000 34,532, ,354,000 Total Guideway and Track Elements 552,979, ,917, ,917, ,917, ,570, ,679, ,668,000 Stations, Stops, Terminals, and Intermodals Bonds 126,687, ,467, ,467, ,467, ,089,000 56,804,000 79,574,000 Stations, Stops, Terminals, and Intermodals FC 42,345,000 42,345,000 42,345, ,345, ,175,000 13,599,000 22,571,000 Stations, Stops, Terminals, and Intermodals VTA 834, , , , , Stations, Stops, Terminals, and Intermodals FTA 107,777, ,777, ,777, ,777, ,423,000 8,976,000 89,378,000 Total Stations, Stops, Terminals, and Intermodals 277,643, ,423, ,423, ,423, ,521,000 79,379, ,523,000 0 Support Facilities: Yards, Shops, Admin Building Bonds 27,343,996 22,695,000 22,695, ,695, ,979,000 10,740,000 8,976,000 Support Facilities: Yards, Shops, Admin Building FC 7,742,000 7,742,000 7,742, ,742, ,104,000 3,080,000 3,558,000 Support Facilities: Yards, Shops, Admin Building VTA 149, , , , , Support Facilities: Yards, Shops, Admin Building FTA 17,806,000 17,806,000 17,806, ,806, ,685,000 2,033,000 14,088,000 Total Support Facilities: Yards, Shops, Admin Building 53,040,996 48,392,000 48,392, ,392, ,917,000 15,853,000 26,622,000 Sitework and Special Conditions Bonds 154,099, ,501, ,501, ,501, ,544,000 53,305,000 27,652,000 Sitework and Special Conditions 22 1,041,000 1,041,000 1,041, ,041,000 1,137, (96,000) Sitework and Special Conditions FC 41,166,000 41,166,000 41,166, ,166, ,007,000 15,265,000 10,894,000 Sitework and Special Conditions VTA 2,809,000 2,809,000 2,809, ,809, ,000 2,027, Sitework and Special Conditions FTA 76,499,000 76,499,000 76,499, ,499, ,000 22,899,000 10,075,000 43,140,000 Total Sitework and Special Conditions 275,614, ,016, ,016, ,016,000 2,304,000 80,477,000 78,645,000 81,590,000 Systems Bonds 125,033, ,254, ,254, ,254, ,849,000 89,385,000 41,020,000 Systems FC 45,099,000 45,099,000 45,099, ,099, ,609,000 25,008,000 15,482,000 Systems VTA 622, , , , , Systems FTA 84,849,000 84,849,000 84,849, ,849, ,033,000 16,505,000 61,311,000 Total Systems 255,603, ,824, ,824, ,824, ,113, ,898, ,813,000 Right-of-Way (ROW), Land and Existing Improvements Bonds 54,552,000 25,421,000 25,421, ,421, ,239,000 1,182,000 0 Right-of-Way (ROW), Land and Existing Improvements FC 10,510,000 10,510,000 10,510, ,510, ,140, ,000 0 Right-of-Way (ROW), Land and Existing Improvements VTA 1,370,000 1,370,000 1,370, ,370, ,370, Right-of-Way (ROW), Land and Existing Improvements FTA 15,716,000 15,716,000 15,716, ,716, ,472, ,000 0 Total ROW, Land and Existing Improvements 82,148,000 53,017,000 53,017, ,017, ,221,000 1,796,000 0 Vehicles (Rail Cars & Support Vehicles) Bonds 53,924,000 58,563,000 58,563, ,563, ,058,000 17,039,000 39,466,000 Vehicles (Rail Cars & Support Vehicles) 22 68,000 64,000 64, ,000 64, Vehicles (Rail Cars & Support Vehicles) FC 26,150,000 26,150,000 26,150, ,150, ,000 5,457,000 19,805,000 Vehicles (Rail Cars & Support Vehicles) VTA 172, , , ,000 52, , Vehicles (Rail Cars & Support Vehicles) FTA 83,411,000 83,411,000 83,411, ,411,000 26,000 1,355,000 3,601,000 78,429,000 Total Vehicles (Rail Cars & Support Vehicles) 163,725, ,360, ,360, ,360, ,000 4,421,000 26,097, ,700,

214 DULLES CORRIDOR ENTERPRISE - CAPITAL IMPROVEMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY FUNDING PROJ SOURCE/ NUM DESCRIPTION REQUIREMENT ORIGINAL BUDGET REVISED BUDGET CARRYOVER 2008 NEW PROGRAM TOTAL EXPENDITURES EXPENDITURES Professional Services Bonds 184,964, ,690, ,690, ,690, ,682,000 87,631,000 74,377,000 Professional Services 22 34,538,000 33,815,000 32,839, ,839,000 32,839, Professional Services FC 92,031,000 92,031,000 92,031, ,031, ,898,000 26,968,000 34,165,000 Professional Services VTA 40,803,000 40,803,000 29,405, ,405,000 25,233,000 4,172, Professional Services FTA 253,879, ,879, ,669, ,669,000 12,431,000 47,146,000 17,799, ,293,000 Total Professional Services 606,215, ,218, ,634, ,634,000 70,503, ,898, ,398, ,835,000 Unallocated Contingency Bonds 9,471,000 68,229,000 68,229, ,229, ,522,000 29,133,000 22,574,000 Unallocated Contingency ,000 1,135,000 1,135, ,135,000 1,135, Unallocated Contingency FC 21,731,000 21,731,000 21,731, ,731, ,717,000 7,932,000 8,082,000 Unallocated Contingency VTA 1,502,000 1,502,000 1,502, ,502, , , Unallocated Contingency FTA 46,325,000 46,325,000 46,325, ,325, ,000 8,723,000 5,235,000 32,007,000 Total Unallocated Contingency 80,000, ,922, ,922, ,922,000 2,225,000 31,734,000 42,300,000 62,663,000 Finance Charges 22 24,000,000 46,468,000 46,468, ,468, ,468,000 Escalation Bonds 276,517,000 Subtotal Phase 1 $2,647,485,997 $2,595,557,000 $2,541,973,000 $0 $2,541,973,000 $75,174,000 $527,872,000 $771,045,000 $1,167,882,000 Interest on DTR Revenue Bonds Bonds $343,157,000 $343,157,000 $0 $343,157,000 $0 $28,809,000 $42,331,000 $272,017,000 Interest on TIFIA Loan (Rail) Bonds 111,020, ,020, ,020, ,020,000 Interest on Secured by Tax District (Fairfax) Bonds 123,750, ,750, ,750, ,500,000 11,250, ,000,000 Total Interest 0 577,927, ,927, ,927, ,309,000 53,581, ,037,000 Other cost associated with VDRPT, Comprehensive Agreement and Acquisition Cost Bonds 50,000,000 50,000,000 50,000, ,000,000 20,000,000 30,000, Transportation Management Plan (Rail Construction) Bonds 12,500,000 12,500, ,000,000 3,000,000 7,500,000 Route 7 and Spring Hill Road Bonds 94,502,000 94,502,000 12,372,000 62,528,000 16,069,000 3,533,000 Emergency Crossover Enhancements Bonds 5,384,000 5,384,000 48,000 2,541, ,000 2,661, WMATA Latent Defects Reserve Bonds 15,000,000 15,000,000 15,000, ,000, ,000, WMATA Latent Defects Reserve FC Total WMATA Latent Defects Reserve 15,000,000 15,000,000 15,000, ,000, ,000,000 RAIL PHASE Design and Engineering - Phase 2 FTA Design and Engineering - Phase 2 Bonds 12,500,000 12,500,000 10,000,000 2,500,000 0 Total Design and Engineering - Phase ,500,000 12,500, ,000,000 2,500,000 0 Subtotal Phase 2 $0 $0 $0 $12,500,000 $12,500,000 $0 $10,000,000 $2,500,000 $0 TOTAL RAIL $2,712,485,997 $3,238,484,000 $3,184,900,000 $124,886,000 $3,309,786,000 $107,594,000 $668,250,000 $846,329,000 $1,687,613,

215 DULLES CORRIDOR ENTERPRISE - CAPITAL IMPROVEMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY FUNDING PROJ SOURCE/ NUM DESCRIPTION REQUIREMENT ORIGINAL BUDGET REVISED BUDGET CARRYOVER 2008 NEW PROGRAM TOTAL EXPENDITURES EXPENDITURES DULLES TOLL ROAD INTERCHANGE IMPROVEMENTS, BRIDGES, AND STRUCTURES Dulles Corridor / I-495 Interchange Study (HOV and Flyovers) Bonds $0 $0 $0 $750,000 $750,000 $0 $300,000 $450,000 $0 Dulles Corridor/ I-495 Interchange (HOV and Flyovers) (Design) Bonds ,500,000 1,500, ,500,000 Centreville Road Interchange Study (East of Rt. 28) Bonds , , , ,000 0 Route 28 Interchange Study Bonds , , ,000 Interchange Flyover Study (Hunter Mill, Wiehle Ave., Reston Parkway, Fairfax County Parkway) Bonds , , ,000 Subtotal Interchange Improvements, Bridges, and Structures ,750,000 3,750, , ,000 2,500,000 MOBILITY AND CAPACITY IMPROVEMENTS Route 606 Widening Phase I Study Bonds , , , ,000 0 Route 606 Widening Phase I (Design) Bonds ,000,000 4,000, ,000,000 Route 606 Widening Phase I Bonds ,000,000 20,000, ,000,000 Comprehensive Corridor and Connector Road Mobility Study Bonds , , , ,000 0 Subtotal Mobility and Capacity Improvements ,050,000 25,050, , ,000 24,000,000 SOUND WALLS Sound Wall Replacement Study Bonds , , , ,000 0 Sound Wall Improvements Bonds ,700,000 1,700, ,700, Sound Wall Replacement Phase I (Design) Bonds , , , ,000 Sound Wall Replacement Phase I Bonds ,000,000 15,000, ,000,000 Subtotal Sound Walls ,600,000 17,600, ,900, ,000 15,250,000 PAVEMENT RECONSTRUCTION Repair and Resurface Dulles Connector Rd. Mainline Bonds ,000,000 6,000, ,000,000 0 Repair and Resurface Connector Rd. Ramps Bonds ,000,000 3,000, ,000,000 0 Repair and Resurface Toll Road Ramps Bonds ,000,000 9,000, ,000,000 Subtotal Pavement Resurfacing ,000,000 18,000, ,000,000 9,000,000 TECHNOLOGY AND TRAFFIC MANAGEMENT Dynamic Message Signs (DMS) Study/Design/Procurement Bonds , , ,

216 DULLES CORRIDOR ENTERPRISE - CAPITAL IMPROVEMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY FUNDING PROJ SOURCE/ NUM DESCRIPTION REQUIREMENT ORIGINAL BUDGET REVISED BUDGET CARRYOVER 2008 NEW PROGRAM TOTAL EXPENDITURES EXPENDITURES Dynamic Message Signs (DMS) Phase I Bonds ,000,000 5,000, ,500,000 2,500,000 Toll Collection System Bonds ,000,000 10,000, ,000,000 5,000,000 Automated Revenue Collection System (ARCS) Maintenance On-line Monitoring System (MOMS) Violation Enforcement System (VES) Subtotal Technology ,300,000 15,300, ,000 7,500,000 7,500,000 TOLL PLAZAS (MAINLANE AND RAMPS) Plaza Approach Signing and Channelization Study/Design/Procurement Bonds , , , Plaza Approach Signing and Channelization Implementation Bonds ,500,000 1,500, ,500, Plaza Optimization/Open Road Tolling Study Bonds , , , Toll Booth and Toll Collection Systems Cabinet Replacement Bonds ,567,000 6,567, ,307,000 3,260,000 0 Security Implementation Bonds , , , ,000 0 Subtotal Toll Plazas/Booths ,567,000 9,567, ,807,000 3,760,000 0 SIGNING, LIGHTING, AND ROADWAY APPURTENANCES Overhead and Guide Sign Study (Lighting vs. Sheeting) Bonds 200, , , Overhead Sign Lighting/Sign Replacement Bonds ,000,000 2,000, ,300, ,000 Sign Structure Replacement Bonds ,000,000 1,000, , ,000 Guardrails, Traffic Barriers, Fencing Replacement Program Bonds ,000,000 2,000, ,000,000 1,000,000 Subtotal Signing, Lighting, and Roadway Appurtenances ,200,000 5,200, ,000 2,800,000 2,200,000 OTHER Engineering, NEPA Studies Bonds ,500,000 2,500, ,500, Maintenance Storage Yard/Emergency Resource Location Study Bonds ,000 50, , Maintenance Storage Yard/Emergency Resource Location Bonds ,000,000 5,000, ,000,000 0 Subtotal Other ,550,000 7,550, ,550,000 5,000,000 0 TOTAL ROADS $0 $0 $0 $102,017,000 $102,017,000 $0 $11,807,000 $29,760,000 $60,450,000 TOTAL DULLES CORRIDOR $2,712,485,997 $3,238,484,000 $3,184,900,000 $226,903,000 $3,411,803,000 $107,594,000 $680,057,000 $876,089,000 $1,748,063,000 FUND: Bonds - All Bonds and Commercial Paper; 22 - Dulles Toll Road; FC - Fairfax County; LC - Loudoun County; FTA - Federal Transit Administration; PFC - Passenger Facility Charge; VTA - Virginia Transportation Act of Commonwealth of Virginia (VTA 2000) 206

217 DULLES CORRIDOR ENTERPRISE - CAPITAL IMPROVEMENT PROGRAM 2008 BUDGET METROPOLITAN WASHINGTON AIRPORTS AUTHORITY SUMMARY BY FUNDING SOURCES/REQUIREMENTS DESCRIPTION FUNDING SOURCE/ REQUIREMENT ORIGINAL BUDGET REVISED BUDGET CARRYOVER 2008 NEW PROGRAM TOTAL EXPENDITURES AND UNSCHEDULED EXPENDITURES RAIL RAIL PHASE 1 Bonds Bonds $1,235,167,997 $1,161,334,000 $1,161,334,000 $0 $1,161,334,000 $0 $261,779,000 $522,045,000 $377,510,000 Dulles Toll Road 22 60,618,000 82,523,000 81,547, ,547,000 35,175, ,372,000 Fairfax County FC 400,000, ,000, ,000, ,000, ,000, ,000, ,000,000 Loudoun County LC Virginia Transportation Act of Commonwealth of Virginia (VTA 2000) VTA 51,700,000 51,700,000 40,302, ,302,000 26,797,000 13,505, Federal Transit Authority FTA 900,000, ,000, ,790, ,790,000 13,202, ,588,000 99,000, ,000,000 Passenger Facility Charge PFC Subtotal Rail Phase 1 $2,647,485,997 $2,595,557,000 $2,541,973,000 $0 $2,541,973,000 $75,174,000 $527,872,000 $771,045,000 $1,167,882,000 Bonds Bonds $65,000,000 $642,927,000 $642,927,000 $112,386,000 $755,313,000 $32,420,000 $130,378,000 $72,784,000 $519,731,000 Dulles Toll Road Fairfax County FC Loudoun County LC Virginia Transportation Act of Commonwealth of Virginia (VTA 2000) VTA Federal Transit Authority FTA Passenger Facility Charge PFC Subtotal $65,000,000 $642,927,000 $642,927,000 $112,386,000 $755,313,000 $32,420,000 $130,378,000 $72,784,000 $519,731,000 RAIL PHASE 2 Bonds Bonds $0 $0 $0 $12,500,000 $12,500,000 $0 $10,000,000 $2,500,000 $0 Dulles Toll Road Fairfax County FC Loudoun County LC Virginia Transportation Act of Commonwealth of Virginia (VTA 2000) VTA Federal Transit Authority FTA Passenger Facility Charge PFC Subtotal Rail Phase 2 $0 $0 $0 $12,500,000 $12,500,000 $0 $10,000,000 $2,500,000 $0 TOTAL RAIL $2,712,485,997 $3,238,484,000 $3,184,900,000 $124,886,000 $3,309,786,000 $107,594,000 $668,250,000 $846,329,000 $1,687,613,000 DULLES TOLL ROAD Bonds Bonds $0 $0 $0 $102,017,000 $102,017,000 $0 $11,807,000 $29,760,000 $60,450,000 TOTAL ROADS $0 $0 $0 $102,017,000 $102,017,000 $0 $11,807,000 $29,760,000 $60,450,000 TOTAL DULLES CORRIDOR $2,712,485,997 $3,238,484,000 $3,184,900,000 $226,903,000 $3,411,803,000 $107,594,000 $680,057,000 $876,089,000 $1,748,063,000 FUND: Bonds - All Bonds and Commercial Paper; 22 - Dulles Toll Road; FC - Fairfax County; LC - Loudoun County; FTA - Federal Transit Administration; PFC - Passenger Facility Charge; VTA - Virginia Transportation Act of Commonwealth of Virginia (VTA 2000) 207

218 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM RAIL PROJECTS Rail Phase 1 Guideway and Track Elements This section includes the surface, aerial and subway/tunnel construction costs, including track work for Metrorail. Also includes costs associated with rough grading, dirt work, and concrete base where applicable. Budget Estimate: $643,677,000 ($130.9M/2008, $258.4M/2009 and $254.4M/ ) Project Duration: Annual (5 year period) Starting Budget Year: 2008 Stations, Stops, Terminals and Intermodals) This section includes the stations, platforms, parking lots, access roads, parking garages, pedestrian overpasses, and support infrastructure associated with the passenger stations (e.g. bus park-and-rides, Kiss & Ride). Also includes costs associated with rough grading, excavation, station structures, enclosures, finishes, equipment, and mechanical and electrical equipment. Budget Estimate: $260,922,000 ($31.7M/2008, $67.2M/2009 and $162.0M/ ) Project Duration: Annual (5 year period) Starting Budget Year: 2008 Support Facilities: Yards, Shops, Administrative Building This section includes vehicle storage yards and maintenance buildings, office support buildings and shop equipment. Also includes costs associated with support facilities, rough grading, excavation, support structures, enclosures, finishes, equipment, and mechanical and electrical equipment. Where a support facility is associated with a station, its costs may be included with the station costs. Budget Estimate: $46,423,000 ($5.7M/2008, $15.2M/2009 and $25.5M/ ) Project Duration: Annual (5 year period) Starting Budget Year: 2008 Sitework and Special Conditions This section includes anticipated costs for environmental mitigation, roadway modifications, utility modifications and demolitions. Budget Estimate: $232,931,000 ($2.2M/2007, $77.1M/2008, $75.4/2009 and $78.2M/ ) Project Duration: Annual (6 year period) Starting Budget Year: 2007 Systems This section includes costs for control systems, electrification, communications, revenue collection, and vertical access (escalators and elevators). Budget Estimate: $258,324,000 ($23.7M/2008, $123.5M/2009, and $111.1M/ ) Project Duration: Annual (5 year period) Starting Budget Year: 2008 ROW, Land and Existing Improvements This section includes land, property rights, and relocation costs, if required. Also includes costs associated with services related to these items of work, agency staff oversight and administration, real estate and relocation consultants, legal counsel, court expenses and insurance. Budget Estimate: $53,948,000 ($52.1M/2008 and $1.8M/2009) Project Duration: 24 months Starting Budget Year:

219 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM Vehicles This section includes the costs of new Metrorail vehicles that would operate on the Dulles Corridor Metrorail Project. The vehicle cost estimates are derived from a planned WMATA procurement of rail cars. Budget Estimate: $173,832,000 ($146K/2007, $4.6M2008, $26.9M/2009 and $142.2M/ ) Project Duration: Annual (6 year period) Starting Budget Year: 2007 Professional Services This section includes preliminary engineering, final design, construction management, project management, owner administration, FTA and other agency coordination, insurance, and project start-up and testing. Budget Estimate: $662,057,000 ($53.6M/ , $71.2M/2007, $158.8M/2008, $133.2M/2009 and $245.3M/ ) Project Duration: Annual (9 year period) Starting Budget Year: 2004 Unallocated Contingency This section includes costs for unanticipated events or occurrences that may occur. Budget Estimate: $128,636,000 ($2.1M/2007, $29.4M/2008, $39.2M/2009 and $58.0M/ ) Project Duration: Annual (6 year period) Starting Budget Year: 2007 Other Cost Associated with VDRT, Comprehensive Agreement and Acquisition Cost This section includes other associated cost with regards to the comprehensive agreement and acquisition with Virginia Department of Rail and Public Transportation (VDRPT). Budget Estimate: $50,000,000 ($20.0M/2007 and $30.0M/2008) Project Duration: 24 months Starting Budget Year: 2007 Transportation Management Plan This section includes costs for The transportation management plan (TMP) comprises of a set of strategies that would be implemented during the construction of the Dulles Corridor Metrorail Project Extension to Wiehle Avenue (the Project) to manage or mitigate the congestion effects of construction. The TMP strategies include: (i) Transportation demand management (TDM) programs to promote carpooling, vanpooling, alternative work hours, telecommuting, and parking management; (ii) Traffic operational improvements such as intersection widening, signalization improvements, and re-routing traffic through other intersections; (iii) Incident management strategies including a comprehensive approach to detection/verification of incidents, coordinated response/removal practices and a program to provide motorists with timely and relevant information; (iv) Application of intelligent transportation systems (ITS) technologies relating to advanced traffic management (ATMS) and advanced traveler information (ATIS); and (v) Transit operational improvements. These strategies will be implemented by VDOT using funding from the Airports Authority and Fairfax County. The total TMP budget is $25 million, and the Airports Authority is contributing $12.5 million between 2007 and Budget Estimate: $12,500,000 ($2.0M/2008, $3.0M/2009 and $7.5M/ ) Project Duration: Annual (5 year period) Starting Budget Year: 2008 Route 7 and Spring Hill Road The section includes work activities on Route 7 that are beyond what is essential to the functionality of the Project. These activities include boulevard and pedestrian improvements, mid-block crossings, some 209

220 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM utility relocations, and street reconfiguration. The Route 7 improvements are consistent with Fairfax County's long-range comprehensive plan, in which Route 7 is redeveloped into a pedestrian-friendly, transit-oriented boulevard. These activities are being done concurrently with project construction to avoid multiple disruptions of traffic and inconvenience to project stakeholders. The value of this CNPA reflects the cost of utility relocations in Route 7 that are beyond what is essential to the project and additional streetscape, pedestrian and lighting features beyond VDOT standard practice. The value is based on cost data submitted by DTP derived from their currently proposed and agreed to price. Budget Estimate: $94,502,000 ($12.4M/2007, $62.5M/2008, $16.1M/2009 and $3.5M/ ) Project Duration: Annual (6 year period) Starting Budget Year: 2007 Emergency Crossover Enhancements This section includes the planned moveable barriers and select vehicular crossovers on the Dulles Access Highway (DIAHH) are designed to help provide access for fire and rescue vehicles to respond to events in the corridor. This infrastructure solution is being done in lieu of mutual aid agreements that would have assigned emergency response responsibilities to various local jurisdictions. This activity is not essential to the functioning of the Project, but it would improve safety and emergency operations on the DIAAH. It is being done concurrently with construction of the rail guideway to maximize the use of funds and to reduce future impacts and multiple disruptions to DIAAH users. The value of this CNPA is the cost of these improvements and is based on cost data submitted by DTP derived from their currently proposed and agreed to price. Budget Estimate: $5,384,000 ($48K/2007, $2.5M/2008, $134K/2009 and $2.7M/ ) Project Duration: Annual (6 year period) Starting Budget Year: 2007 WMATA Latent Defects Reserve The Authority and the Metropolitan Washington Area Transit Authority (WMATA) have entered into an agreement related to the construction of the Metrorail Extension Phase 1. The parties recognize that, (i) under the Design-Build Contract, MWAA has agreed to limit the Design-Build Contractor's liability to five (5) years after Substantial Completion; (ii) the Design-Build Contract contemplates future work, known as "Allowances" for which the entirety of the WMATA standard warranty provisions are intended to be, but for commercial reasons may not be provided; and (iii) the Design-Build Contract further limits the Design-Build Contractor s liability for indemnity obligations under Section (b) of the Design- Build Contract. WMATA agrees that it is bound by the exclusions and limitations of the Design-Build Contract. Therefore, to mitigate WMATA's risks associated with these provisions MWAA will establish an escrow fund (Escrow) for the benefit of WMATA that is to be used exclusively (1) to pay the capital costs of correcting any latent defects discovered after the expiration of the five-year limitation on the Design-Build Contractor's liability, (2) to pay claims for work performed under any Allowances that would have been covered under WMATA's standard warranty, had it been provided as part of that contract, and (3) to pay claims for indemnity otherwise extinguished pursuant to Section (b) of the Design-Build Contract. The Authority has agreed to create the Escrow and transfer, by one or more deposits, fifteen million dollars into the Escrow. The Authority has agreed to fully fund the Escrow within thirty six months of transfer of the Toll Road to the Authority. Budget Estimate: $15,000,000 ($15.0M/ ) Project Duration: Annual (3 year period) Starting Budget Year: 2010 Rail Phase 2 Design and Engineering Phase 2 This section includes costs for design and engineering 210

221 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM for Phase 2 of the rail. Budget Estimate: $12,500,000 ($10.0M/2008 and $2.5M/2009) Project Duration: 24 months Starting Budget Year: 2008 DULLES TOLL ROAD PROJECTS Interchange Improvement Projects Dulles Corridor / I-495 Interchange Study (HOV and Flyovers) This Capital Improvement project will be the first step in assessing improvements to the I-495 interchange. A study will be performed within the boundaries of the Dulles Corridor and I-495 Interchange to determine the warrants for additional direct HOV and/or Access Highway flyover connections in addition to those being added by the I-495 HOT Lanes Public Private Partnership (PPP) project. This will involve obtaining recent traffic data; performing traffic demand and usage analyses; and preliminary alignment plans and coordination with the current PPP project underway. Budget Estimate: $750,000 ($300,000/2008 and $450,000/2009) Project Duration: 24 months Starting Budget Year: 2008 Benefit: Compliance of FHWA requirements for justification of additional access points on the interstate highway system. Dulles Corridor / I-495 Interchange (HOV and Flyovers) (Design) Utilizing the traffic warrants and operational analyses performed during the study phase; provide preliminary design development concurrent with NEPA documentation for additional direct HOV and/or Access Highway flyover connections in addition to those being added by the I-495 HOT Lanes PPP project. This will involve preliminary engineering, and NEPA documentation and project design in advance of selecting a contractor and delivery method for construction of the project(s). Budget Estimate: $1,500,000 ($500,000/year) Project Duration: 36 months Starting Budget Year: 2010 Benefit: Planning and preparation of designs to allow for construction activities to commence after the I-495 HOT Lanes PPP Project is completed and open to traffic. Centreville Road Interchange Study (East of Rte. 28) This project will be to perform a study within the boundaries of the Dulles Corridor and Centreville Road Interchange to determine the warrants for additional direct access flyover connections, widened ramps, and/or unique configurations that will improvement movements within the interchange. This will involve obtaining recent traffic data; performing traffic demand and usage analyses; and preliminary alignment plans. Budget Estimate: $500,000 ($250,000/year) Project Duration: 24 months Starting Budget Year: 2008 Benefit: Compliance of FHWA requirements for justification of additional access points on the interstate highway system. System improvements to the Dulles Toll Road Corridor. Route 28 (Sully Road) Interchange Study This project will be to perform a study within the boundaries of the Dulles Corridor and the Route 28 (Sully Road) Interchange to determine the warrants for additional direct access flyover connections, widened ramps, and/or unique configurations that will improve movements within the interchange area. Recent 211

222 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM improvements to the Route 28 corridor via grade separations may have changed the throughput characteristics of the existing interchange configuration. This will involve obtaining recent traffic data; performing traffic demand and usage analyses; and preliminary alignment plans. Budget Estimate: $500,000 ($250,000/year) Project Duration: 24 months Starting Budget Year: 2011 Benefit: Compliance of FHWA requirements for justification of additional access points on the interstate highway system. System improvements to the Dulles Toll Road Corridor. Interchange Flyover Study This project is to perform a study within the boundaries of the Dulles Corridor and the Interchanges with Hunter Mill Road, Wiehle Ave, Reston Parkway, and Fairfax County Parkway to determine the warrants for additional direct access flyover connections, widened ramps, and/or unique configurations that will improve movements within the corridor and interchange areas. The issues surrounding these interchanges are common; therefore suggested improvements may apply to one or all interchanges pending traffic analysis and conditions. This study will involve obtaining recent traffic data; performing traffic demand and usage analyses; and preliminary alignment plans. (If warranted a full interchange justification report may be required, as a separate task). Budget Estimate: $500,000 ($250,000/year) Project Duration: 24 months Starting Budget Year: 2010 Benefit: Compliance of FHWA requirements for justification of additional access points on the interstate highway system. System improvements to the Dulles Toll Road Corridor. Mobility and Capacity Improvement Projects Route 606 Widening, Phase I Study This project is to perform a study within the boundaries of Route 606 in the immediate vicinity of Washington Dulles and the Dulles Toll Road Corridor to determine the warrants for widening and upgrading the performance characteristics of this roadway. This will involve obtaining recent traffic data; performing traffic demand and access warrants and preliminary alignment plans. Budget Estimate: $550,000 ($250,000/2008 and $300,000/2009) Project Duration: 24 months Starting Budget Year: 2008 Benefit: Completes roadway network improvements and improves access to/from Washington Dulles and the Dulles Corridor. System improvements to the Dulles Toll Road Corridor. Route 606 Widening, Phase I (Design) Utilizing the traffic warrants and operational analyses performed during the study phase; provide preliminary and design development concurrent with NEPA documentation for the anticipated improvements. This will involve preliminary engineering, and NEPA documentation, and design in advance of selecting a contractor and delivery method for construction of the project. Budget Estimate: 4,000,000 ($2M/year) Project Duration: 24 months Starting Budget Year: 2010 Benefit: Completes roadway network improvements and improves access to/from Washington Dulles and the Dulles Toll 212

223 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM Road Corridor. System improvements within the Dulles Toll Road Corridor. for moving passengers through the corridor. Route 606 Widening, Phase I Construction activities for the improvements to Route 606. This will involve significant maintenance of traffic operations during construction to maintain access for the multiple tenants along Route 606. Major construction items/activities would include pavement subase, pavement, pavement markings, traffic control and signing. Budget Estimate: $20,000,000 ($10M/year) Project Duration: 24 months Starting Budget Year: 2011 Benefit: Completes roadway network improvements and improves access to/from Washington Dulles and the Dulles Toll Road. Comprehensive Corridor and Connector Road Mobility Study This study will look at future traffic demand and evaluate potential improvements against the ability to provide for real mobility in terms of throughput, clearing bottlenecks, or improving traffic management. It is anticipated that traffic and geometric considerations will be simulated via software applications to determine pre and post improvement performance. Since the toll road will likely be operating at capacity during the 50 year term of the agreement to operate, choices will need to be implemented regarding the highest and best use of available lanes. This study will look at various capacity improvements, interchange and access improvements to the facility. Budget Estimate: $500,000 ($250,000/year) Project Duration: 4 months Starting Budget Year: 2008 Benefit: Due diligence for operating the most efficient corridor Sound Wall Projects Sound Wall Replacement Study Perform a sound study within the corridor to determine the various types of wall design and other methods that can be used to minimize the corridor traffic noise as well as meeting the Federal Highway Administration Noise Wall Guidelines. This will involve taking sound measurement readings, determining sound generation mechanisms and recommending noise reduction strategies with the projected results at required locations. Budget Estimate: $400,000 ($200,000/year) Project Duration: 24 months Starting Budget Year: 2009 Benefit: Compliance of FHWA requirements for Sound walls as well as identification of appropriate sound reducing measures. Sound Wall Replacement Phase I (Design) This project is for the structural design for those walls and areas that meet the required Federal Highway Administration Noise Wall Guidelines and are designated by the study as candidates for replacement or new construction under the Sound Wall Replacement Study. This work will include the design, plans and specifications to let the required work for construction. Design will include aesthetics as well as noise abatement design. Budget estimate: $500,000 ($250,000/year) Project Duration: 24 months Starting Budget year: 2009 Benefit: Safety, aesthetics, and consistency Sound Wall Replacement Phase I 213

224 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM The Dulles Toll Road and Dulles Connector Road Asset Assessment Summary Report and VDOT both recommend that the sound walls should be replaced in the near term. Based on the recommendations of the Sound Wall Study, designs will be developed incorporating aesthetics, adjacent communities and modern sound attenuation techniques. This provides an opportunity to use modern noise reduction techniques, enhance safety and security, and provide improvements to the corridor and adjoining neighborhoods. This project will consist of the removal (if necessary) and construction of the new or replacement sound walls for Phase I based on recommendations from the Soundwall Study Phase I. Budget estimate: $15,000,000 ($5M/year) Project Duration: 6 months Starting Budget year: 2010 Pavement Reconstruction Repair and Resurface Dulles Connector Road Mainlane This project will provide for the repair and resurfacing of the Dulles Connector Road mainlane pavements. Initial surveys have identified areas of pavement that may be distressed below the surface course that will require full depth repair and/or replacement of subgrade materials. This work can usually be phased over multiple years. Traffic maintenance will be a significant item of work and usually confined to nighttime operations in the Northern Virginia region. Work needs to be planned with adequate timeframes for shifting traffic and ancillary construction. Budget Estimate: $6,000,000 Project Duration: Project can be performed in one construction season. Starting Budget Year: 2009 Benefit: Preserves the lifespan of the asphalt pavement. Typically a consideration under an asset management program that prioritizes when to spend maintenance funds versus replacement funds. Repair and Resurface Dulles Connector Road Ramps This project will provide for the repair and resurfacing of the Dulles Connector Road ramp pavements. Initial surveys have identified areas of pavement that may be distressed below the surface course that will require full depth repair and/or replacement of subgrade materials. This work can usually be phased over multiple years. Traffic maintenance will be a significant item of work. This work is usually confined to night-time operations in the Northern Virginia region. Work needs to be planned with adequate timeframes for shifting traffic and ancillary construction. Budget Estimate: $3,000,000 Project Duration: Project can be performed in one construction season. Starting Budget Year: 2009 Benefit: Preserves the lifespan of asphalt pavement. Typically a consideration under an asset management program that prioritizes when to spend maintenance funds versus replacement funds. Repair and Resurface Dulles Toll Road Ramps This project will provide for the repair and resurfacing of the Dulles Toll Road ramp pavements. Initial surveys have identified areas of pavement that may be distressed below the surface course that will require full depth repair and/or replacement of subgrade materials. Six of the 54 ramps evaluated in this corridor received a Pavement Condition Index rating below 70. This work can usually be phased over multiple years. Traffic maintenance will be a significant item of work. This work is usually confined to night-time operations in the Northern Virginia region. Work needs to be planned with adequate timeframes for shifting traffic and ancillary construction; therefore, the size of projects will be 214

225 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM determined by the quantity of work that can be accomplished in a construction season. Budget Estimate: $9,000,000 Project Duration: Project can be performed in one construction season. Starting Budget Year: 2010 Benefit: Preserves the lifespan of asphalt pavement. Typically a consideration under an asset management program that prioritizes when to spend maintenance funds versus replacement funds. Technology and Traffic Management Dynamic Message Signs (DMS) Study and Design This project would provide for the study and design of Dynamic Message Signs along the Dulles Toll Road Corridor. These signs would provide travelers information within the corridor regarding traffic information, lane closures, toll rates and contact numbers for emergency and courtesy patrol and other traveler information. It is anticipated that the Dynamic Message Signs will be linked with the Virginia Department of Transportation Traffic Management Center and will provide a method of conveying traffic conditions to the travelers within the corridor and through their active traffic management system. These signs will also be deigned so that they could be utilized to convey time-of-day pricing or variable pricing along the corridor. This project should be performed in consideration with the corridor study to assist in congestion management. This project will include the study, planning and design and traffic management integration of these signs. This estimate does not include fiber /communications. The estimate initially anticipates two DMS signs within the facility. Budget Estimate: $300,000 Project Duration: 12 months Starting Budget Year: 2008 Benefit: Revenue generation and safety (better decision making - fewer lane changes, accident reduction) Dynamic Message Signs (DMS) Phase I This project is to construct and implement the Dynamic Message Signs specified and designed for within the Dynamic Message Signs Study and Design. This project will provide Dynamic Message Signs (DMS) on the roadway controlled by the Airports Authority to provide information to the traveling public regarding traffic information, lane closures, toll rates, and contact numbers for courtesy patrol or other informational purposes. This project will include the construction and installation of these signs. This estimate does not include fiber /communications or design costs. Current estimate anticipates two Dynamic Message Signs within Phase I of this project. Budget Estimate: $5,000,000 ($2.5M/year) Project Duration: 24 months Starting Budget Year: 2009 Benefit: Revenue generation and safety (better decision making - fewer lane changes, accident reduction). Toll Collection System This work includes the development of design and procurement documents, interfacing with VDOT, design, software, and hardware required for a possible new Automated Revenue Collection System (ARCS), a Maintenance On-Line Monitoring System (MOMS), and an upgraded Violation Enforcement System (VES). The Airports Authority may wish to implement its own Automated Revenue Collection System (ARCS) to replace the existing Transcore system presently on the Dulles Toll Road. Presently the Transcore system is antiquated and does not provide accurate or reliable toll collection capabilities. Additionally, a MOMS would link the operations of the toll transaction equipment to a central monitoring 215

226 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM point so that problems in operation could be quickly identified. This improves the reliability and accuracy of the equipment. This also improves revenue generation and keeps more toll lanes in service, therefore reducing last minute decisions by motorists. Maintenance On-Line Systems allow technicians to monitor the toll system outputs to determine technology issues prior to complete failures that cause lane shut downs. It also provides and active log of the type of equipment and location of equipment that generate the most repair notices. With the implementation of open road toll or express lanes, there is the opportunity for more travelers to utilize the roadway without paying. An effective and accurate toll Violation Enforcement System is critical to being a deterrent for violators. This project would include the software, hardware, communications and integration for a violation enforcement system at the mainlane plaza and ramp plazas. This project would include installation/upgrade of equipment and back office processing. Budget Estimate: $10,000,000 ($5M/year) Project Duration: 24 months Starting Budget Year: 2009 Benefit: Revenue generation, improved toll system monitoring and management, and improved violation enforcement. Toll Plazas (Mainlane and Ramps) Plaza Approach Signing and Channelization Study/Design/Procurement The toll booth areas are a decision making point for the traveling motorist. Clear signage and markings improve the decision process resulting in fewer incidents at the toll booths. For example, this would mean fewer wrong lane choices when an attended booth is desired but the motorist chose an unattended toll lane. This project would study potential improvements to lane striping and configuration, delineation and signing to provide traveling motorists information prior and entering into the toll plaza. This project would also include the design, engineering analysis and recommendations. Budget Estimate: $300,000 Project Duration: 6 months Starting Budget Year: 2008 Benefit: Safety and revenue generation Plaza Approach Signing and Channelization Implementation This project will include the construction elements to implement the improvements noted in the Plaza Approach Signing and Channelization Study. Plaza approach upgrades may include: striping, channelization makers and delineation, new signage in advance and at the toll plaza. Traffic control will be a major part of this work. Budget Estimate: $1,500,000 Project Duration: 6 months Starting Budget Year: 2008 Benefit: Safety and revenue generation Plaza Optimization/Open Road Tolling Study At the toll plazas (mainlane and ramp) there are a mix of lanes including attended lanes, automated cash machine lanes and electronic toll payment lanes (Smart Tag and E-ZPass Lanes). Currently the total number of Smart Tag users continues to increase, especially since the inception of the E-ZPass with electronic toll payments approaching nearly 60% of the total toll transactions. With the increased growth of traffic and customers within the corridor there is a need for increased efficiency and mobility through the Dulles Toll Road Plazas. This study would look at the traffic patterns at the plazas, review the types of transactions, customers and the respective quantity of transactions for each type. Recommendations would be made for an optimal plaza configuration to include the quantity of lane types, location of lane types and equipment and plaza migration plan. 216

227 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM Budget Estimate: $450,000 Project Duration: 6 months Starting Budget Year: 2008 Benefit: Safety, revenue generation, traffic mobility and safety Toll Booth Replacement It was noted in the Dulles Toll Road and Dulles Connector Road Asset Assessment Summary Report that the toll booths are now showing their age. Many of the booths were in poor condition. Inspection of the toll booths revealed the only consistent safety issue was the failure of emergency lighting inside the toll booths. The electrical enclosures are rusted due to climate and its proximity to the road. The concrete curb in the outside lane are also failing. Drainage problems were apparent within the interior lanes, exhibiting cracks in the concrete and sediment at low points. Deterioration of the walkways in the toll lanes were present. The deficiencies noted at some of the plazas include loose and/or non-enclosed wiring and separating flashing. It is recommended to replace the existing toll booths with pre-fabricated units, designed to meet the Airports Authority s requirements and provide a unique system identity. This project should be scheduled in coordination with the Toll Plaza Optimization Study to ensure that the appropriate number of booths being replaced corresponds with the overall Plaza Optimization Plan. Budget Estimate: $5,000,000 ($2.5M/year) Project Duration: 24 months Starting Budget Year: 2008 Benefit: Work environment, aesthetics, safety of staff Overhead Guide Sign Study (Lighting vs. Sheeting) As noted in the Dulles Toll Road and Dulles Connector Road Asset Assessment Summary Report many of the current overhead sign structures have signs that were damaged, have lost reflectivity, and have overhead lighting that is non functional. Many DOT s are currently migrating their overhead signs to a high intensity reflectorized sheeting that does not require the continued use of lighting. As the Airports Authority may be required to update a significant portion of these signs in the near future, a study should be conducted as the cost benefit analysis considering the benefits of high reflectorized sheeting or to upgrade the current overhead sign lighting. This study would provide a recommendation to the Airports Authority on the cost of the various alternatives both short term and long term including capital, utility cost considerations and life cycle costs. This study will further suggest and overall project design and phasing. Budget Estimate: $200,000 Project Duration: 12 months Starting Budget Year: 2008 Benefit: Safety improvements Overhead Sign Lighting/Sign Replacement As noted in the Dulles Toll Road and Dulles Connector Road Asset Assessment Summary Report many of the current overhead sign structures have signs that were damaged, have lost reflectivity and have overhead lighting that is non functional. This project will implement the recommendations as outlined in the Overhead Guide Sign Study regarding the upgrade and replacement of those signs that do not meet the current reflectivity and lighting requirements. Depending on the study, this project will include the construction and implementation of new guide signs and/or lighting and traffic control. This project should be performed in consideration with the Sign Structure Replacement project if possible. Budget Estimate: $2,000,000 ($1.3M/2008 and $700,000/2009) Project Duration: 18 months Starting Budget Year: 2009 Benefit: Safety, aesthetics, and consistency Sign Structure Replacement Appendix 7 of the Dulles Toll Road and Dulles Connector Road Asset Assessment Summary Report identified a number of sign structure deficiencies that 217

228 DULLES CORRIDOR CAPITAL IMPROVEMENT PROGRAM required correction. Each sign structure on the system has information in Appendix 7 noting the work needed to repair the deficiency. The deficiency remediation can be compiled into a project to correct all outstanding issues. This will ensure that the sign structures are sound and within safety standards.. Budget Estimate: $1,000,000 ($500,000/year) Project Duration: 4 months Starting Budget Year: 2009 Benefit: Safety Guardrails, Traffic Barriers, and Fencing This project is to implement those recommendations as outlined in the Safety Study. Such safety enhancements my include guardrail, terminal anchor section, and traffic and cable barrier improvements as well as channelization improvements. Additional safety improvements not currently within the corridor may include adding barrier at clear zone hazards, upgrading existing barriers to current standards, adding barriers in areas where there are high occurrence of incidents or changing the barrier type to decrease maintenance costs. Fencing maybe added/modified to remove hazards or increase security. Budget Estimate: $2,000,000 ($1M/year) Project Duration: 24 months Starting Budget Year: 2009 Benefit: Safety Other Budget Estimate: $2,500,000 Project Duration: 12 months Starting Budget Year: 2008 Maintenance Storage Yard/Emergency Resource Location Study Should the Airports Authority desire to perform maintenance activities including snow and ice removal and sanding operations, it will be necessary to have a maintenance storage and service yard that is within the corridor that provides an efficient and safe access to the corridor for the required major equipment and vehicles to service this corridor. This project is to assess possible locations, develop a site location plan and concept for storage facility. Budget Estimate: $50,000 Project Duration: 6 months Starting Budget Year: 2008 Maintenance Storage Yard/Emergency Resource Location This project will be to construct the maintenance storage facility as determined in the Maintenance Storage Yard/Emergency Resource Location Study. It is anticipated that this project will include a storage facility, security fencing and lighting, parking and access. Budget Estimate: $5,000,000 Project Duration: 12 months Starting Budget Year: 2009 Engineering, NEPA Studies This project is to provide engineering design and NEPA studies to the various projects within the Dulles Toll Road Corridor. These studies will result in a full 5-year Capital Improvement plan in full detail with designated projects and expenditures assigned to the appropriate budget year. The studies will review all aspects of the corridor and provide cost estimates, project scope, and project plans. 218

229 GLOSSARY ACCRUAL BASIS An accounting method whereby income and expense items are recognized as they are earned or incurred, even though they may not have been received or actually paid in cash. AIR OPERATIONS AREA The secured areas of each Airport utilized by aircraft, including runways, taxiways, and ramps. AIRLINE COST PER ENPLANEMENT For each Airport, the total annual cost of fees and charges paid by the Signatory Airlines to the Authority divided by the total signatory enplanements. AIRPORT COMMUNICATIONS SYSTEM The Authority owns the Airport Communications System (ACS) at both Reagan National and Washington Dulles. The ACS consists of more than 12,000 lines used by the Authority and numerous airport tenants. In an average month, more than 800,000 calls are processed through the ACS, including more than 180,000 minutes of domestic long distance calls. Tenants are invoiced for the services they receive, based on a proportionate share of the operating cost of the ACS. The tenants are also invoiced for any local or long distance costs they incur. Operates and maintains the ACS for the Authority. The Authority budgets in the O&M Program for the net cost of the ACS. AIRPORT IMPROVEMENT PROGRAM (AIP) See Federal Grants. AIRPORT TRAFFIC CONTROL TOWER (ATCT) A terminal facility which, through the use of air/ground communications, visual signaling, and other devices, provides air traffic control services to airborne aircraft operating in the vicinity of an airport and to aircraft operating on the airport airfield. AIRPORT USE AGREEMENT AND PREMISES LEASE The Authority and the major airlines serving Reagan National and Washington Dulles entered into an agreement effective January 1, 1990, that defines their operating and financial relationship for the next 25 years. The Agreement includes the concurrence of the Airlines in the CCP and continues a close working relationship between the Air Carriers and the Airports. Fees and charges paid by the airlines are used along with other income from the Airports to service the debt issued to finance the CCP. The Agreement and Premises Lease is also referred to as the Agreement. AIRPORTS Refers to Ronald Reagan Washington National and Washington Dulles International Airports, the two Airports operated by the Authority. AUCTION RATE SECURITIES (ARS) Floatingrate bonds where the rate is periodically reset by a dutch auction. AIRPORTS AUTHORITY The Metropolitan Washington Airports Authority, a body corporate and politic created by interstate compact between the Commonwealth of Virginia and the District of Columbia. AUTOMATED REVENUE COLLECTION SYSTEM (ARCS) The collective equipment and procedures that record and process an electronic, video or other automated toll payment that occurs at a toll collection point. AVI The automatic vehicle identification equipment used as part of Electronic Toll Collection (ETC) or the Electronic Toll and Traffic Management (ETTM) equipment. BOARD OF DIRECTORS The Board of Directors (Board) of the Authority consists of 13 members, five appointed by the Governor of Virginia, three appointed by the Mayor of the District of Columbia, two appointed by the Governor of Maryland, and three appointed by the President of the United States. Board members serve six-year terms, which are staggered. BOND A certificate of debt issued by the Authority pursuant to the Master Indenture and a Supplemental Indenture securing payment of the original investment plus interest by a specified future date. 219

230 GLOSSARY BOND ANTICIPATION NOTE A short-term borrowing that is retired with proceeds of a bond sale. BUDGET AMENDMENT Recommendations from the President to amend the adopted budget are submitted to the Finance Committee. Budget Amendments approved by the Finance Committee are submitted to the Board for adoption. CAPITAL CONSTRUCTION PROGRAM (CCP) The CCP (including the contractual CDP and Dulles Development (d 2 ) Program provides for major expansion of facilities at Washington Dulles and facilities modernization of facilities at Reagan National. CAPITAL DEVELOPMENT PROGRAM (CDP) The CDP contractually provides for major expansion of facilities at Washington Dulles and modernization of facilities at Reagan National as defined by the Agreement. CAPITAL FACILITY PROJECTS DULLES CORRIDOR Any extensions of, additions to, or major modifications, replacements or reconstruction of the Toll Road or any other roads or highways within the Dulles Corridor, excluding the Dulles Access Highway, but including (a) additional ramps or interchanges provide direct access to and from the Toll Road; or (b) addition of traffic lanes for bus only, high occupancy vehicle or high occupancy toll use or similar restricted use. CAPITAL IMPROVEMENT Any extensions of, additions to, or major modifications, replacements or reconstruction of the Toll Road or any other roads or highways within the Dulles Corridor, excluding the Dulles Access Highway, but including (a) additional ramps or interchanges provide direct access to and from the Toll Road; or (b) addition of traffic lanes for bus only, high occupancy vehicle or high occupancy toll use or similar restricted use. CAPITAL, OPERATING AND MAINTENANCE INVESTMENT PROGRAM (COMIP) The COMIP (formerly the Capital Maintenance and Investment Program, and initially, the Repair and Rehabilitation Program) provides for repair work at the Airports, as well as equipment, planning, improvements and operational initiatives. The COMIP is funded from the Authority s share of net remaining revenue and is recovered through depreciation. Any COMIP funded from bonds are recovered through debt service. CARGO This refers to mail and freight at both Airports. CASH TOLL REVENUE Monies generated from a customer payment of tolls through cash at the time of transaction at toll booth on the toll facility. COMMERCIAL PAPER Commercial Paper (CP) is a short-term promissory note issued for periods up to 270 days, with maturities commonly at 30, 60 and 90 days. The Authority currently has two CP programs. COMMERCIAL PAPER PROGRAM The Authority has a CP Program with authorization to issue up to $500 million. The CP program is supported by three liquidity facility agreements; Westdeutsche Landesbank (WestLB) for $75 million, Landesbank Baden - Wurttenberg (LBBW) for $125 million and JPMorgan Chase for $220 million. COMMONWEALTH OF VIRGINIA GRANTS The Commonwealth of Virginia, through the aviation portion of the Transportation Trust Fund provides grants to Virginia airport sponsors. The Authority will receive 60 percent of any new money available for allocation by the Virginia Aviation Board, up to a maximum of $2 million annually. These funds will be used as an additional source of funding for capital equipment and projects. COMMUTER AIRLINE An airline that operates aircraft with a maximum of 60 seats with an operating frequency of at least five scheduled round trips per week between two or more points. See also Major Airline, National Airline and Regional Airline. 220

231 GLOSSARY COMPENSATORY RATE A rate based on cost recovery, which excludes application of transfers for signatory airlines of the Agreement. CONCESSIONS The Authority contracts with private firms for many of the services provided to Airport users, including public parking facilities, rental cars, in-flight kitchens, fixed base operators, food and beverage facilities, newsstands, and retail stores. The concessionaires are generally required to pay a percentage of gross revenues to the Authority with an annual minimum amount. Revenues from concessions comprise a significant portion of the Authority s operating revenues. CONCOURSE A A regional concourse at Washington Dulles opened in May 1999, with more than 71,000 square feet to accommodate 36 regional aircraft positions. Concourse A and B are joined by a pedestrian bridge. CONCOURSE B A midfield passenger terminal at Washington Dulles that opened in February 1998 and was expanded in the Spring 2003, to a total of 550,000 square feet to serve 20 aircraft positions for international and domestic airliners. See Midfield Concourses. CONCOURSE C/D A temporary midfield passenger terminal at Washington Dulles opened in 1985 (D) and 1986 (C) to serve 22 aircraft positions. United is the main tenant in these concourses. See Midfield Concourses. CONCOURSE G A commuter concourse opened in June 2004, for United Airlines express carriers at Washington Dulles. This is a temporary structure with approximately 26,000 square feet and accommodates 24 regional aircraft. CONCOURSE C INTERNATIONAL ARRIVALS FACILITY See International Arrivals Facility. CONNECTING PASSENGER A passenger who transfers from one flight to another en route to a final destination. CONTIGENCY RESERVE A reserve comprised of deposits from Toll Road Revenues and other revenue sources to be used for eligible costs and expenses within the Dulles Corridor for unanticipated events or occurrences. Funds will be deposited upon availability. CORRIDOR CAPITAL IMPROVEMENTS FUND Subject to the adequacy of Toll Revenues, the Airports Authority shall have the right to design, construct, and maintain Capital Improvements with the Toll Road Right-of Way, including those considered in developing the Airports Authority s Financial, and shall have the right, subject to the approval of the Department, to design and construct all other Capital Improvements. CORRIDOR CAPITAL IMPROVEMENTS PROGRAM (CIP) A program to methodically address the planning and implementation of Capital Improvements on the Toll Road and which shall be subject to annual review by the Virginia Department of Transportation. CORRIDOR CAPITAL IMPROVEMENTS RESERVE A reserve comprised of at least an annual deposit from Toll Road Revenues and other revenue sources to be used for capital improvements within the Dulles Corridor. Subject to the adequacy of Toll Revenues, the Airports Authority shall have the right to design, construct, and maintain Capital Improvements with the Toll Road Right-of Way, including those considered in developing the Airports Authority s Financial Projections and shall have the right, subject to the approval of the Department, to design and construct all other Capital Improvements. COST CENTER An area of the Airports to which a revenue or expense is attributed, i.e., airfield, terminal, public parking, rental cars, etc. CUSTOMER SERVICE CENTER A facility used to service users of the Toll Road including registration and maintenance of customer toll accounts, violation processing and verification, and responding to general inquiries. 221

232 GLOSSARY DAILY GARAGES 1 and 2 To accommodate current daily parking demand at Washington Dulles, the Authority constructed two public parking garages, initially named North Parking Garage and West Parking Garage that flank the main parking oval in front of the Main Terminal. An underground pedestrian connector was constructed between the Main Terminal and the Daily Garage 1 to provide passengers with a safe and convenient way to cross the terminal roadways and surface parking lot. The connector includes moving sidewalks and climate control. These garages provide approximately 8,550 public parking spaces. DEBT SERVICE FOR AVIATION Principal and interest payments on bonds. The bond financed portions of the CCP are recovered through debt service, instead of depreciation. See Statement of Operations for further clarification. DEBT SERVICE FOR DULLES CORRIDOR Principal and interest payment on Toll Revenue Bonds. As stated in the Permit and Operating Agreement, the Airports Authority is solely responsible for obtaining and repaying all financing, at its own cost and risk and without recourse to the Department, necessary to maintain, improve, equip, modify, repair and operate the Toll Road and any Capital Improvements throughout the Term and necessary to develop and construct the Dulles Corridor Metrorail Project. DEBT SERVICE COVERAGE FOR AVIATION An amount equal to 125 percent of the portion of Debt Service attributable to bonds, plus other such amounts as may be established by any financial agreement. DEBT SERVICE RESERVE FUND FOR DULLES CORRIDOR Not less frequently than annually, all Toll Road Revenues shall be budgeted and used solely to pay reserve funds such as the Debt Service Reserve Fund. This reserve will fund debt service and other amounts payable under any Toll Road Financing Documents (including, without limitation, swaps, reimbursement agreements, commercial paper or any other similar products, or any scheduled TIFIA debt), together with deposits to any reserves created under any Toll Road Financing Documents, including the funding of any reasonable cash reserves or escrow accounts in respect thereof. DEPARTMENT The Virginia Department of Transportation, a department of the Commonwealth of Virginia. DEPLANING PASSENGER Any revenue passenger disembarking at the Airports, including any passenger who will board another aircraft (i.e., connecting passenger). DEPRECIATION Includes the annual amount charged by the Authority to recover its investment in capital equipment and capital facility projects acquired by the Authority during the period from June 7, 1987, through September 30, 1989, and to recover its investment in COMIP projects funded from revenues. See Statement of Operations for further clarification. DISCRETIONARY GRANTS See Federal Grants. d 2 PROGRAM In August 2000, the Board approved a $3.4 billion Budget Amendment to authorize new capital projects at Washington Dulles including: construction of one of the remaining two parallel runways, including associated taxiway and apron improvements; development of new and expanded terminal facilities, including a Tier 2 Concourse and completion of the Concourse B (Tier 1); construction of a People Mover System from the Main Terminal to each of the Tiers; development of a sterile International People Mover System; construction of a new air traffic control tower; development of new support facilities and utilities; and various roadway and parking improvements to support increased annual growth. DULLES ACCESS HIGHWAY A 17-mile, fourlane divided highway reserved for use by Airport traffic, connecting Dulles with Interstate Route 66. The Commonwealth of Virginia has constructed a 222

233 GLOSSARY multi-lane, divided toll road for non-airport users flanking both sides of the Dulles Access Highway. DULLES CORRIDOR The transportation corridor with an eastern terminus of the East Falls Church Metrorail station at Interstate Route 66 and a western terminus of Virginia Route 772 in Loudoun County, including without limitation, the Dulles Toll Road, the Dulles Access Road, outer roadways adjacent or parallel thereto, mass transit, including rail, bus rapid transit and capacity enhancing treatments such as High-Occupancy Vehicle lanes, High-Occupancy Toll Lanes, interchange improvements, commuter parking lots and other transportation management strategies. DULLES CORRIDOR METRORAIL PROJECT Phases 1 and 2 of the rail facility as defined and per the conditions decision in the march 2, 2005 Record of Decision of the Federal Transit Administration, as amended on November 17, 2006, and the July 12 Impact Statement for the project, as they may be further amended or supplemented from time to time, including all related systems, stations, parking and maintenance facilities. DULLES CORRIDOR METRORAIL PURPOSES Purposes limited to the developing, permitting, design financing, construction, installation and equipping of the Dulles Corridor Metrorail Project. DULLES GREENWAY The Dulles Greenway is a 14-mile, four-lane, privately-operated toll road that extends the state-operated Dulles Toll Road to Leesburg, Virginia. The Authority granted easement to developers to build a 2½ mile segment of the Dulles Greenway on Dulles property. DYNAMIC MESSAGE SIGN (DMS) Changeable message boards located on or adjacent to a roadway that displays text information that may affect traffic conditions and travel times. Also known as a Variable Message Sign (VMS). This signage usually displays information regarding travel times, roadway conditions and toll pricing if relevant. EARLY PROGRAM Those projects of the CCP funded from the proceeds of subordinated bonds issued prior to January 1, EFFECTIVE BUYING INCOME - Referred to as EBI. Disposable income after taxes and mandatory non-tax payments. ELECTRONIC TOLL COLLECTION (ETC) TOLL REVENUE Monies generated from a customer payment of tolls using a toll transponder. ELECTRONIC TOLL AND TRAFFIC MANAGEMENT EQUIPMENT (ETTM) The AVI equipment, video monitoring equipment, toll violator systems, manual, automatic and electronic toll collection equipment; the transportation management system equipment; communications equipment; and all other computer hardware necessary to meet the performance specification for electronic toll and traffic management. ELIGIBLE TRANSIT OPERATING COSTS Nonoperating expenses designated to pay for operating costs of the Dulles Corridor Metrorail Project. ELIGIBLE TRANSIT OPERATING COSTS RESERVE A reserve comprised of at least an annual deposit from Toll Road Revenues and other revenue sources to be used for eligible costs and expenses for transit operations within the Dulles Corridor. EMERGENCY (R&R) RESERVE The reserve required by the Master Indenture for emergency repair and rehabilitation of the Airports. ENCUMBRANCES Equipment that is awarded by December 31, 2006 but not delivered and facility projects that are awarded but not completed are defined as encumbrances. Budget authorization for encumbrances outstanding at year-end does not lapse. Encumbrances are reported as budgeted expenditures in the year expended and appear as expenditures on the Statement of Operations under the designation Prior Year Encumbrances. 223

234 GLOSSARY ENPLANING PASSENGER Any revenue passenger boarding at the Airports, including any passenger that previously disembarked from another aircraft (i.e., connecting passenger). ENTITLEMENT GRANTS See Federal Grants. ENTERPRISE RESOURCE PROGRAM (ERP) An Authority-wide Enterprise Resource Planning system which will provide a comprehensive integrated system encompassing core administration functional areas and link business processes, integrate data, and share data information across applications and with users. EXTRAORDINARY MAINTENANCE AND REPAIR RESERVE The moneys in this reserve, including all interest earnings thereon, shall be deposited with a third party trustee and shall be supplemented by the Airports Authority on an annual basis as necessary, taking into account accumulated earnings thereon, such that the total amount in this reserve is increased in accordance with the U.S. Implicit Price Deflator Index. All moneys in this reserve shall be invested in Eligible Investments. All moneys in this reserve shall be treated as an operating and maintenance expense of the Toll Road. FEDERAL AVIATION ADMINISTRATION (FAA) The FAA is a component of the Department of Transportation and, within the airspace of the United States, promotes air safety, regulates air commerce, controls the use of navigable airspace, develops and operates air navigation facilities, develops and operates the air traffic control system, and administers Federal Grants for development of public-use airports. The FAA operated the Airports prior to their transfer to the Authority on June 7, The Authority coordinates with the FAA on numerous aviation programs including air security and noise abatement. The Federal Grants received by the Authority are administered by the FAA. FEDERAL GRANTS FAA s Airport Improvement Program provides both entitlement and discretionary grants for eligible airport projects. Entitlement funds are determined by a formula according to enplanements at individual airports. These grants are permitted to be used by the Authority at either or both Airports. The Authority applies for discretionary grants from the FAA through a Letter of Intent (LOI) process. Each LOI represents an intention to obligate funds from future federal budget appropriations. The issuance of a Letter of Intent is subject to receipt of Congressional appropriations for grants to airports, and does not itself constitute a binding commitment of funds by the FAA. For planning purposes, the amounts in an approved LOI from FAA are used by the Authority as the estimate of federal discretionary grants to be received. The Authority has also received other federal grants including those from the Federal Emergency Management Agency (FEMA) and the Homeland Security Grant Program. FEDERAL LEASE Congress authorized the Secretary of Transportation to lease the Airports to the Authority by the Metropolitan Washington Airports Act of The lease was signed on March 2, 1987, and operating responsibility for the Airports was transferred to the Authority on June 7, 1987, for an initial term of 50 years ending June 6, The Lease was amended effective June 17, 2003, to extend the terms to June 6, FISCAL YEAR The Authority formally changed its Fiscal Year from an annual period ending September 30th to an annual period ending December 31st, effective January 1, Historical aviation activity is presented on a calendar year basis. FIXED BASE OPERATORS (FBOs) Those commercial businesses at the Airports authorized by the Authority to sell aviation fuels and provide other aviation-related services, primarily to General Aviation, but does not include the fueling agent. FUELING AGENT The agent selected to operate and maintain the fueling system for each Airport and deliver fuel through the fueling system. 224

235 GLOSSARY FUELING SYSTEM At each Airport, the Authority-owned hydrant fueling system and the Authority-owned fuel farm. GASB STATEMENTS NO. 43 AND 45 See OTHER POST EMPLOYMENT BENEFITS (OPEB). GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) Conventions, rules and procedures that define accepted accounting practices, including broad guidelines, as well as detailed procedures. GENERAL AVIATION An operator of private or corporate aircraft not used in the common carriage of passengers, cargo, or freight, and an operation of aircraft as a non-scheduled air taxi. GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) An independent private-sector, not-for-profit organization that establishes and improves standards of financial accounting and reporting for U.S. state and local governments. Governments and the accounting industry recognize the GASB as the official source of generally accepted accounting principles (GAAP) for state and local governments. GRANTS See Federal Grants, and Commonwealth of Virginia Grants. GROSS TOLL REVENUES The full total amount of toll revenue collected. HIGH DENSITY RULE U.S. DOT regulation that imposes limits on the number of flights scheduled at Reagan National through assignment of hourly operational slots. HUBBING A practice whereby the Airlines schedule large numbers of flights to arrive at an airport within a short time and to depart shortly thereafter, thus maximizing connecting passenger traffic. INDENTURE Any trust agreement or similar instrument between the Airports Authority and a trustee or collateral agent pursuant to which the Toll Revenues are pledged to the holders of debt issued by the Airports Authority. INTEREST RATE SWAP An agreement between two parties to exchange future flows of interest payments. One party agrees to pay the other a fixed rate; the other pays the first party an adjustable rate usually tied to a short-term index. INTERIM TERMINAL The temporary terminal facilities built in a hangar at the north end of Reagan National. The Interim Terminal began operations in July 1989 and remained operational as a passenger terminal facility until Terminal B and C opened in July INTERNATIONAL ARRIVALS BUILDING Washington Dulles has two international clearance facilities: one located at the Main Terminal and a second facility at the Midfield Concourse C. These facilities are used for processing international deplaned passengers by the U.S. Customs and Immigration Services. The Main Terminal International Arrivals Building (IAB) was opened in 1991 and subsequently enlarged in 1993 because of growth in international activity. The Concourse C International Arrivals Facility was opened in See also International Arrivals Facility. INTERNATIONAL ARRIVALS FACILITY In 1996 United opened a second international arrivals facility in the Midfield Concourse C so transferring international passengers (those not ending their journey at Washington Dulles) could clear U.S. Customs without being transported back and forth to the Main Terminal International Arrivals Building (IAB). Since opening, the Concourse C International Arrivals Facility has primarily served United and Lufthansa connection passengers. All terminating international passengers, including United s, continue to use the Main Terminal IAB. In late 1997, the Authority bought out United s investment in the Concourse C International Arrivals Facility to better 225

236 GLOSSARY control airline access to the facility. See also International Arrivals Building. LANDED WEIGHT Refers to the maximum gross certificated landed weight in one thousand pound units, as stated in the airlines flight operations manual. Landed weight is used to calculate landing fees for both airline and General Aviation aircraft operated at the Airports. LANDING FEES Fees for payment for the use of the airfield for both airline and General Aviation aircraft, calculated based on airfield costs and recovered based on aircraft landed weight. A separate fee structure is developed for each Airport. LETTER OF INTENT See Federal Grants. LIFE CYCLE MAINTENANCE PLAN A maintenance plan that is to be prepared annually covering a full five-year period and considering life cycle asset maintenance for the Toll Road, and including a description of all Renewal and Replacement Program Work to be undertaken during the following five years, the estimated costs and timing related to each task specified therein, and such other reasonably related information. LOCAL DISADVANTAGED BUSINESS ENTERPRISE (LDBE) PROGRAM The Authority is committed to full participation in its contracting programs by minority, women-owned, disadvantaged, and small and local business enterprises. The LDBE Program was adopted by the Board at the June 6, 1990 Board meeting and replaced earlier outreach programs. The LDBE Program aggressively seeks increased participation of minority and women-owned business enterprises in the Authority s contracting opportunities and includes a preference for local disadvantaged businesses in selected Authority contracts. LONG-TERM DISABILITY PROGRAM The Authority has established a Long-Term Disability Program for employees hired after the June 7, 1987, transfer of the Airports. The program provides disability benefits until age 65 or older, depending on the age of the employee at the time of disability. LOUDOUN COUNTY EXTENSION (Phase 2) The continuation of the Dulles Corridor Metrorail Project beyond Wiehle Ave. (Phase 1) that will extend the Metrorail to Reston, Herndon, Washington Dulles, and into eastern Loudoun County. MAIN TERMINAL At Reagan National, refers to the historic Terminal A. At Washington Dulles, refers to the terminal building designed by the late Eero Saarinen, with subsequent additions, served by an upper level roadway for departing passengers and a lower level roadway for arriving passengers. MAINTENANCE ON-LINE MONITORING SYSTEM (MOMS) An automated system designed to monitor and report of equipment failures and record maintenance activity. MAJOR AIRLINE An airline with gross operating revenues during any calendar year of more than $1 billion. See also Commuter Airline, National Airline, and Regional Airline. MASTER INDENTURE The Master Indenture of Trust dated February 1, 1990 as amended and restated by the Amended and Restated Master Indenture of Trust dated September 1, 2001, securing the Authority s Airport System Revenue Bonds. MASTER PLAN For Reagan National, refers to the plan that became effective on April 15, 1988, after adoption by the Board of Directors and submission to its Board of Review, and for Washington Dulles, refers to the plan for which the Authority assumed responsibility under the federal lease, including any amendments to either plan. 226

237 GLOSSARY MASTER TRANSFER AGREEMENT The agreement between the Airports Authority and the Department relating to the transfer of the Dulles Toll Road and the Dulles Corridor Metrorail Project dated December 29, METROPOLITAN WASHINGTON AIRPORTS AUTHORITY The Airports Authority operates Reagan National and Washington Dulles under an 80- year lease agreement with the U.S. Department of Transportation. Congress authorized the lease of the Airports, formerly operated by the Federal Aviation Administration, in October The lease of the Airports to the Airports Authority by the federal government was signed on March 2, 1987, and operating responsibility for the Airports was transferred to the Airports Authority on June 7, METRORAIL CAPITAL PROJECTS AND RESERVES AND LATENT DEFECT FUND This fund to be used for capital cost of the Dulles Corridor Metrorail Project then due and payable and not otherwise paid or reasonably expected to be paid from proceeds of the Toll Revenue Bonds, including the funding of a reasonable cash reserve in an amount not to exceed $10 million plus any accrued interest earnings thereon for costs associated with remedying any latent defects related thereto, all in accordance with the WMATA Agreement. MIDFIELD CONCOURSES Two remote temporary midfield concourses, Midfield Concourses B and C/D, were built at Washington Dulles by the Airlines, one at each end of the jet ramp, to accommodate growth in activity until replaced by permanent facilities. A permanent midfield concourse, Midfield Concourse B, built by the Authority and opened in February 1998, was funded from PFCs and Authority net remaining revenue. A Regional Airline Midfield Concourse connected to Concourse B opened in April 1999 to accommodate both turboprop and jet regional/commuter aircraft. Mobile Lounges and Plane-Mates are used to shuttle passengers between the Midfield Concourses and the Main Terminal. MIDFIELD CONNECTOR An enclosed 760-foot walkway with moving sidewalks constructed by United to enable connecting passengers to move between Midfield Concourses C and D at Washington Dulles. MOBILE LOUNGE A vehicle for transporting passengers between and among the Washington Dulles terminals, concourses, and aircraft. Developed specifically for use at Washington Dulles, these vehicles can carry up to 102 passengers, with 71 seated. One end of the lounge mates with the terminal building, the other is equipped with a passenger bridge to connect with aircraft. A total of 21 Mobile Lounges were built, of which 19 are still operational. This fleet has been supplemented with 31 second-generation passenger conveyance vehicles. See Plane-Mates. NATIONAL AIRLINE An airline with gross operating revenues of between $100 million and $1 billion during any calendar year. See also Commuter Airline, Major Airline, and Regional Airline. NET INCOME Operating and nonoperating revenues less nonoperating expenses, debt service and reserve contributions. NET OPERATING INCOME Total operating revenues less total operating expenses. NET REMAINING REVENUE (NRR) For any fiscal year, the total of revenues and transfers less (a) operation and maintenance expenses, including the federal lease payment; (b) debt service; (c) the amount of rental credits given to certain scheduled air carriers as set forth in the surviving agreements; and (d) required deposits to maintain the operation and maintenance reserve and the COMIP reserve. Under the Agreement, NRR is further adjusted by deducting depreciation and airline subordinated debt service coverage. The resulting balance is then divided by a formula between the Authority and the Signatory Airlines. NET TOLL REVENUES The total amount of toll revenue collected minus expenditures for operations, 227

238 GLOSSARY administration, and maintenance and uncollectible tolls. NONOPERATING EXPENSES The collective term for expenses associated with the Renewal and Replacement Program, Corridor Capital Improvements, Metrorail Capital Project and Latent Defects, and Eligible Transit Operating Costs. NONOPERATING REVENUE The collective term for monies generated by interest income, other capital contributed, and investment income on capital contributed. NORTH TERMINAL At Reagan National, refers to the terminal previously located north of Terminal A, which was connected to Terminal A via the North Concourse and was served by the lower level roadway. The North Terminal was demolished to make way for Terminal B and C. OPERATING EXPENSES The Authority s financial statements are prepared on the accrual basis in accordance with generally accepted accounting principles (GAAP). For budget purposes, however, operating expenses have been modified to conform with the provisions of the Agreement. Under the terms of this Agreement, beginning on October 1, 1989, capital equipment and capital facility projects funded from the O&M Program are treated as operating expenses. Previously acquired capital equipment and capital facility projects continue to be recovered through depreciation. The bond-financed portion of the CCP and the bond-financed pension liability are recovered through debt service. The COMIP is recovered through depreciation and funded from the Authority s share of net remaining revenue. Any maintenance-type projects funded from bonds are recovered through debt service. OPERATING INCOME Operating revenues less operating expenses equal operating income. Although the Authority s financial statements are prepared on the accrual basis in accordance with generally accepted accounting principles (GAAP), for budget purposes, operating revenues and operating expenses are defined under the terms of the Agreement. See the definitions of Operating Revenues and Operating Expenses for clarification. OPERATING REVENUES The Authority s financial statements are prepared on the accrual basis in accordance with generally accepted accounting principles (GAAP). For budget purposes, however, operating revenues have been modified to conform with the provisions of the Agreement. Under the terms of this Agreement, transfers are applied as credits in the calculation of signatory airline rates for rentals, fees, and charges for the next year. Transfers are the signatory airlines share of net remaining revenue for each year. OPERATING REVENUES FOR THE DULLES CORRIDOR Revenues for the Dulles Corridor Enterprise is generated by ETC, cash tolls, violations fee collections, concessions, and other income associated with this project. OPERATION AND MAINTENANCE (O&M) PROGRAM The O&M Program provides for the day-to-day operation and maintenance of the Airports, including those functions performed by the Consolidated Functions staff for both Airports. The O&M Program includes operating expenses and debt service. OPERATION AND MAINTENANCE (O&M) RESERVE The two-month cash reserve for operation and maintenance expenses required by the Master Indenture. OPERATION AND MAINTENANCE RESERVE A fund to be funded not less frequently than annually from Toll Road Revenues and used for all costs and expenses of operating and maintaining the Toll Road, including the funding of any reasonable cash reserve or escrow accounts in respect thereof. OPERATING EXPENSES The collective term for expenses associated with personnel compensation and benefits, other personnel expenses, travel, internal audit, lease and rental payments, utilities, 228

239 GLOSSARY telecommunications, services, supplies, materials, fuels, insurance and risk management, noncapital equipment, noncapital facility projects, and capital facility projects. ORIGINATION AND DESTINATION (O&D) PASSENGER A passenger who is beginning or ending air travel at a particular airport, as compared to a connecting passenger who is transferring from one flight to another en route to a final destination. OTHER POST EMPLOYMENT BENEFITS (OPEB) The GASB Statements No. 43 and 45 address the identification and disclosure of the liability and funding status of post-retirement benefits, other than pensions. The OPEB s are earned during working years and should be part of the current cost of providing public services. The OPEB liability will be actuarially determined and funded similar to pensions. PARKING GARAGE A A three and one-half level public parking facility at Reagan National with approximately 2,000 parking spaces, Parking Garage A is the principal parking facility for Terminal A. It is also used by the rental car operators. A pedestrian tunnel was constructed between Parking Garage A and Terminal A to provide passengers with safe and convenient access between the two facilities. PARKING GARAGE B/C A four and one-half level public parking facility at Reagan National with approximately 4,400 spaces, Parking Garage B and C is the principal parking facility for Terminal B and C. Pedestrian bridges connect Parking Garage B and C to both Terminal B and C and the Metro Station. PARSONS MANAGEMENT CONSULTANT (PMC) The contractor who assists the Authority in managing and providing technical support for the CCP. PASSENGER CONVEYANCES The Washington Dulles Mobile Lounges/Plane-Mates or other ground transportation devices, including any underground people mover system provided by the Authority, for the movement of passengers between and among terminals, concourses, and aircraft at Washington Dulles. PASSENGER FACILITY CHARGES The Aviation Safety and Capacity Expansion Act of 1990, enacted November 5, 1990, and amended in February 2001, enables airports to impose a Passenger Facility Charge (PFC) of $1, $2, $3, $4 or $4.50 on enplaning passengers. PFCs can be used for any projects determined by the FAA to be eligible, primarily those projects that are eligible for Airport Improvement Program grants. The Authority began collecting PFCs in November 1993 at Reagan National and January 1994 at Washington Dulles. In February 2001, the Authority received FAA approval to increase PFC collection authority from $3.00 to $4.50 on each qualified enplaning passenger. PFCs collected by the Authority replace federal entitlement grants received in an amount equal to 75 percent of the total federal entitlement grant to which each Airport is entitled. PENSION LIABILITY Under the provisions of the transfer legislation, the Authority was required to pay to the U.S. Civil Service Retirement and Disability Fund (1) the actual added costs incurred by the Fund due to discontinued service retirements and (2) the estimated future unfunded liability of employees who transferred to the Authority and remained under the U.S. Civil Service Retirement System. Series 1988C and Series 1988D Bonds issued for $24,505,000 were used to pay the pension liability. For cost recovery purposes, this amount was recovered through debt service. These bonds were retired October 1, PERFORMANCE MANAGEMENT PARTNERSHIP (PMP) PROGRAM The Authority s method of managing employee performance. PMP promotes group and individual goals, communication between supervisor and employee and pay is tied to group and individual performance. PERIMETER RULE U.S. DOT regulation which generally limits non-stop flights at Reagan National to a radius of 1,250 statue miles. 229

240 GLOSSARY PERMIT AND OPERATING AGREEMENT The Dulles Toll Road Permit and Operating Agreement in its entirety between the Airports Authority and the Department as of December 29, PLANE-MATE A second generation passenger conveyance vehicle used to supplement the Mobile Lounge fleet at Washington Dulles. Plane-Mates are also used at several other airports throughout the world and have a passenger capacity of 150, with 94 seated. Designed for the newer wide-bodied jets, the body of the Plane-Mate elevates on electrically driven ball screw jacks to connect with terminals, concourses, and aircraft. A total of 31 Plane-Mates operate at Washington Dulles. PREMISES Areas of the Airports leased by airlines pursuant to the Agreement. PRIOR YEAR ENCUMBRANCES See Encumbrances. REGIONAL AIRLINE An airline with gross operating revenues during any calendar year of less than $100 million that operates aircraft with a capacity of more than [60] seats. See also Commuter Airline, Major Airline, and National Airline. REGIONAL AIRLINE MIDFIELD CONCOURSE A The 36-gate Regional Airline Midfield Concourse A opened in April 1999 at Washington Dulles. It is located east of Concourse B and includes passenger access to Concourse B. Primary passenger access is provided by Mobile Lounges and Plane- Mates from the Main Terminal. It accommodates both turboprop and jet regional/commuter aircraft. The Concourse includes passenger holdrooms, restrooms, concession space, and airline support space. See also Midfield Concourses. RENEWAL AND REPLACEMENT FUND Moneys that the Airports Authority shall annually budget and, at a minimum but no less than annually, that shall be available exclusively for funding the Renewal and Replacement Program for the Toll Road and which shall budgeted in consideration of, among other factors, the amounts necessary to be expended to meet the performance standards set forth in the Dulles Toll Road Permit and Operating Agreement, dated December 29, 2006, as between the Virginia Department of Transportation and the Airports Authority. RENEWAL AND REPLACEMENT PROGRAM A program to be developed by and funded with Toll Road Revenues to address major maintenance needs and expenditures, including, but not limited to, overlays, bridge deck replacements, erosion and drainage control, and similar projects not normally encompassed in routine maintenance activities. RENEWAL AND REPLACEMENT RESERVES This reserve shall consist of all deposits in respect of the Renewal and Replacement Program and costs of Renewal and Replacement Work incurred during such a year not funded from Renewal and Replacement Fund. RENEWAL AND REPLACEMENT RESERVE This reserve shall consist of all deposits in respect of the Renewal and Replacement Program and costs of Renewal and Replacement Work for the Dulles Corridor. RESERVE CONTRIBUTIONS The collective term for monies allocated to the Operation and Maintenance Reserve, Renewal and Replacement Reserve, Corridor Capital Improvements Reserve, Metrorail Capital Projects and Reserves for Latent Defects, Eligible Transit Operating Costs Reserve, and Contingency Reserve for the Dulles Corridor. RESERVE MAINTENANCE FUND A top priority fund to be funded not less frequently than annually from Toll Road Revenues and used for all costs and expenses of operating and maintaining the Toll Road, including the funding of any reasonable cash reserve or escrow accounts in respect thereof. REVENUES See Operating Revenues. 230

241 GLOSSARY SECURITY FEES Fees paid by the Transportation Security Administration to the Authority for its costs associated with FAA-required police coverage for passenger screening at departure gates. SENIOR BONDS Any bonds or other financing instrument or obligation issued pursuant to the Master Indenture. SIGNATORY AIRLINE A scheduled air carrier that has executed the Agreement effective during the period from January 1, 1990, through September 30, SOUTH DEVELOPMENT AREA The South Development Area is an 85-acre complex in the southwest corner of Reagan National. Included in the plan for the South Development Area are various airline/tenant support buildings, the airmail facility, remote public parking lots, the new fuel farm, various maintenance and equipment storage buildings, and the industrial waste treatment plant. STATEMENT OF OPERATIONS The Authority s financial statements are prepared on the accrual basis in accordance with generally accepted accounting principles (GAAP). For budget purposes, however, the Statement of Operations has been modified to conform with the provisions of the Agreement. Depreciation includes the annual amount charged by the Authority to recover its investment in capital equipment and capital facility projects acquired by the Authority during the period from June 7, 1987, through September 30, 1989, and to recover its investment in COMIP projects funded from revenues. Capital equipment and capital facility projects acquired by the Authority after October 1, 1989, are treated as operating expenses and are recovered in full in the year purchased. The bond financed CCP and the bond-financed pension liability are recovered through debt service. STRATEGIC INITIATIVES Authoritydeveloped initiatives to guide offices in setting priorities and allocating resources. SUBORDINATE BONDS The Authority s General Airport Subordinate Revenue Bonds issued pursuant to the subordinated indenture dated March 1, TELECOMMUNICATIONS SYSTEM See Airport Communications System. TERMINAL A At Reagan National, refers to the historic Main Terminal. TERMINAL B and C This terminal at Reagan National was built north of Terminal A and is served by a new dual-level roadway. A number of facilities, including the old North Terminal, were demolished to make way for the new terminal. Terminal B and C has the capacity to handle approximately two-thirds of the Airport s passengers. The first 25 gates of the Terminal B and C were opened in July 1997 and the remaining 10 gates opened in August TERMINAL RADAR APPROACH CONTROL (TRACON) An FAA air traffic control facility using radar and air/ground communications to provide approach control services to aircraft arriving, departing, or transiting the airspace controlled by the facility. TIERS Term for concourses at Washington Dulles prior to construction. TIFIA LOANS The Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA), enacted as part of the Transportation Equity Act for the 21st Century (TEA-21), established a new Federal program under which the U.S. Department of Transportation (USDOT) provides credit assistance to major surface transportation projects of national or regional significance. The TIFIA program provides Federal credit assistance to nationally or regionally significant surface transportation projects, including highway, transit, and rail. TOLL FACILITIES The ETTM Facilities, Equipment and System and administration/operations buildings, toll booths, canopies, utility connections, 231

242 GLOSSARY lighting facilities, pedestrian tunnels, etc. related to the manual toll collection system, including all manual toll collection equipment and systems. TOLL FACILITIES REVOLVING ACCOUNT Pursuant to Section :4 of the Code of Virginia, a segregated account subject to any obligations to existing bondholders, and consisting of federal, Toll Revenue and other funding, which may be made available, as loans or otherwise, to private persons or entities for transportation purposes. TOLL REVENUE BONDS The bond, notes or other financial obligations secured by Toll revenues outstanding from time to time under the Toll road Financing Documents, including obligation issued in connection with any TIFIA loans. TOLL REVENUES All amounts received by or on behalf of the Airports Authority from tolls and other user fees applicable to vehicles for the privilege of traveling on the Toll road imposed pursuant to the Dulles Toll Road Permit and Operating Agreement, dated December 29, 2006 as between the Virginia Department of Transportation (the Department ) and the Airports Authority or from proceeds of any concession or similar agreement as contemplated by Section 18.01(b) of the Agreement, and with the exception of revenues and proceeds arising out of or relation to Reserved Rights of the Virginia Department of Transportation. TOLL REVENUE Monies collected from customers of the Dulles Toll Road by means of cash collection and ETC accounts. TOLL REVENUE BONDS The bonds or notes or other financial obligations secured by the Toll Revenues outstanding from time to time under the Toll Road Financing Documents, including obligations issued in connection with any TIFIA loans. TOLL ROAD FINANCING DOCUMENTS The Indentures and any other documents relating to the issuance of Toll Revenue Bonds issued in accordance with the terms of the Permitting and Operating Agreement, together with any and all amendments and supplements thereto. TOLL ROAD Collectively, (a) the Omer L. Hirst Adelard L. Brault Expressway (formerly the Dulles Toll Road), extending from Virginia Route 28 immediately east of Washington Dulles to the vicinity of Interstate 495; (b) all related operating assets, tangible and intangible, which are used are used in the operation of the Toll Road; (c) any Capital Improvements located thereon; and (d) any associated assets as identified in Exhibit C of the Toll Road Permit and Operating Agreement which is entitled the Operations and Maintenance Standards and Performance Requirements. TOLL ROAD OPERATIONS The operation, management, maintenance, rehabilitation, and tolling of and all other actions relating to the Toll Road. Toll Operations typically consist of cash and electronic toll collection, customer service center services, violation processing and toll reconcilaiation. TOLL ROAD PURPOSES Purpose is limited to developing, permitting, design financing, acquisition, construction, installation, equipping, maintenance, repair, preservation, modification, operation, management and administration of the Toll Road or any related Capital Improvements. TOTAL PASSENGERS The total of all enplaning passengers and all deplaning passengers. A connecting passenger is counted as both a deplaning passenger and an enplaning passenger. TRANSFERS The Signatory Airlines share of net remaining revenue for each year. Transfers are applied as credits in the calculation of signatory airline rates for rentals, fees, and charges in the next year. TRANSIT OPERATIONAL FUND A fund comprised of at least an annual deposit from Toll Road Revenues and other revenue sources to be used for eligible costs and expenses for transit operations within the Dulles Corridor. 232

243 GLOSSARY TRANSPORTATION SECURITY ADMINISTRATION (TSA) As part of the Aviation Security Act passed in November 2001, TSA handles passenger security screening at all U.S. Airports. U.S. IMPLICIT PRICE DEFLATOR INDEX Refers to the most recently issued year-to-year U.S. Gross National Product (GNP) Implicit Price Deflator Index, issued by the United States Department of Commerce. VASTERA OFFICE BUILDING Building purchased by the Authority in 2000 to accommodate the construction of the public parking garage at Washington Dulles. This building was formally referred to as the Fairchild Office Building. VIOLATION ENFORCEMENT SYSTEM (VES) The collective equipment and procedures that record the occurrence of a violation transaction and vehicle information, and generate the violation notice or citation process. VIOLATION FEE COLLECTIONS A fee collected from the motorist or registered owner of the vehicle resulting from a motorist s failure to pay the proper toll for use of the Toll Road. VIOLATION PROCESSING The composite set of procedures, equipment and operations used to determine the occurrence of a toll violation resulting from a motorist s failure to pay the proper toll for the vehicle classification, and notifying and collecting the sums due from the motorist or registered owner of the vehicle of the violation. WASHINGTON FLYER GROUND TRANSPORTATION The Washington Flyer ground transportation system is operated by the Authority, which provides bus/van service between the two Airports, from Washington Dulles to downtown Washington, D.C. and to the West Falls Church Metro Station. WASHINGTON FLYER MAGAZINE The Authority publishes bimonthly the Washington Flyer Magazine, which is distributed without charge at the Airports. The purpose of the magazine is to provide helpful information to the users of the Airports and to promote and market the use of the Airports to the frequent traveler in and out of the Washington Metropolitan Area. The Washington Flyer Magazine has become one of the Authority s primary marketing, communications, and public relations tools, reaching more than 180,000 readers each issue. WRAP-UP INSURANCE Traditionally, contractors purchase insurance coverage which is included in their bids. The wrap-up insurance approach removes the obligation for purchasing insurance from the individual contractors. The Authority, using the wrap-up insurance approach, is purchasing the insurance for the CCP in one package. WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY (WMATA) An authority created in 1967 by an Interstate Compact to plan, develop, build, finance and operate a balanced regional transportation system in the National Capital area. Construction of the Metrorail system began in Four area bus systems were acquired in The first phase of Metrorail began operation in The final leg of the original 103-mile rail network was completed in early Today, there are 86 Metro stations in service within a mile network. WIEHLE AVENUE EXTENSION (Phase 1) The Dulles Metrorail Corridor Project that will extend the MetroRail from the vicinity of West Falls Church Station on the orange line to a termini at the Dulles Toll Road / Wiehle Avenue intersection. This will be a temporary termini until Phase 2 extends the project to its ultimate limits. WMATA AGREEMENT An agreement made in 2007 between the Airports Authority and the WMATA for WMATA s oversight services during the term of the Design Build Contract, the provision of rail cars for the Dulles Corridor Metrorail Project, the transfer 233

244 GLOSSARY of the Dulles Corridor Metrorail Project and for other services. WMATA LATENT DEFECTS RESERVE As defined and in accordance with the WMATA Agreement, those costs associated with the Metrorail Capital Project and Latent Defects. 234

245