Passenger Facility Charge: No. 7 Application December 2013 Public Notice Materials Luis Muñoz Marín International Airport San Juan Puerto Rico
INTRODUCTION Aerostar Airport Holdings has initiated the process for a new Passenger Facility Charge (PFC) Application. This application includes 13 projects that will improve airport safety and security, preserve and enhance capacity, and enhance competition. This application includes projects that will significantly improve the terminal as well as rehabilitate the main movement areas of the airfield. Also included are upgrades to airport safety equipment along with studies/planning documents to facilitate future Airport development. 2 SJU PFC #7 Application
TABLE OF CONTENTS PFC Program Status PFC #7 Projects Planned PFC Uses and Plan of Finance Administrative Matters 3 SJU PFC #7 Application
PFC Program Status Update PFC #1-3: Amended and closed PFC #4: Open; amended October 2013 PFC #5: Open; amended October 2013 PFC #6: All projects deleted and application closed 4 SJU PFC #7 Application
Existing PFC Program and Proposed Amendments PFC #7 will increase PFC approvals $181m. Collection of PFC #7 will commence upon the completion of the collections of PFC #6, anticipated to be in May 2020. This will extend the estimated charge expiration date to August 2028 from May 2020. Approved and Proposed PFCs (Revenues as of September 30, 2013) Approved Amount Revenues Remaining Authority (A) (B) (A B) Approved PFCs PFC #1 $ 35,701,298 $ 35,701,298 $ PFC #2 10,167,179 10,167,179 PFC #3 62,028,587 62,028,587 Subtotal Closed Approved PFCs $ 107,897,064 $ 107,897,064 $ PFC #4 60,888,478 60,888,478 PFC #5 268,789,003 $142,982,637 125,806,365 PFC #6 Deleted Subtotal Active Approved PFCs $ 329,677,481 $ 203,871,115 $ 125,806,365 Total All Approved PFCs $ 437,574,545 $ 311,768,180 $ 125,806,365 Proposed PFC Approvals PFC #7 $ 181,167,896 $ $ 181,167,896 Total All Approved and Proposed PFCs $ 618,742,441 $ 311,768,180 $ 306,974,261 5 SJU PFC #7 Application
PLANNED PFC #7 PROJECTS 1. Airport Perimeter Security System 2. ARFF Demolition of Building #29 3. ARFF Trucks and Equipment 4. Terminal Capacity Enhancement Program 5. Environmental Assessment for the Runway 8-26 ROFA and Drainage System Rehabilitation 6. Wildlife Management Equipment 7. Runway 8/26 Airfield Signage Improvements 8. PFC Application Development 9. Runway 8/26 Overlay 10. Taxiway Mike Widening and Vehicle Service Road Design 11. Taxiway November Reconstruction 12. Taxiway Sierra Reconstruction 13. Ten-year Master Plan Update 6 SJU PFC #7 Application
07-001: Airport Perimeter Security System 7 SJU PFC #7 Application
07-001: Airport Perimeter Security System The Airport Perimeter Security System is estimated to cost $6,000,000 and add $1,800,000 to the PFC program This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: The Airport Sponsor needs to upgrade, replace or install approximately 29,881 linear feet of existing substandard and deteriorated chain link security fencing at the Airport. The project will properly secure the perimeter of the Airport property with new security fencing that meets 49 CFR 1542 security requirements. EXPLANATION: The new security fencing provides enhanced security of the Airport by imposing a physical barrier to entry. These fencing improvements were required in order to continue to meet the security requirements of 49 CFR 1542 and the SJU ASP. The fencing also enhances the safety of the Airport by serving as a barrier to wildlife which might otherwise enter the airfield and conflict with aircraft operations. The building of safety and security fences is PFC eligible in accordance with FAA Order 5100.38C, paragraph 547 (f)(1). 8 SJU PFC #7 Application
07-002: ARFF Demolition of Building #29 9 SJU PFC #7 Application
07-002: ARFF Demo of Building #29 The AARF Demo of Building #29 project is estimated to cost $2,000,000 and add $600,000 to the PFC program This project will be for collection and use at the $3.00 level. DESCRIPTION OF PROJECT: This project anticipates the demolition and removal of approximately 74,000 sq. ft. structure located in front of the new ARFF facility. This abandoned former cargo facility is no longer used by the Airport sponsor. The demolition cost is anticipated to be high, due to the presence of asbestos and lead, which will require significant specialized safety precautions to prevent contamination and environmental issues. EXPLANATION: The Airport did not meet the minimum response times for emergency services during the 2012 inspection. The demolition of this building will result in reduced response times and ensure compliance with FAA requirements, improving airport safety. The demolition of sponsor owned buildings is eligible under FAA Order 5100.38C, paragraph 593 (c). 10 SJU PFC #7 Application
07-003: ARFF Trucks and Equipment The ARFF Trucks and Equipment is estimated to cost $2,500,000 and add $750,000 to the PFC program DESCRIPTION OF PROJECT: Aerostar will acquire ARFF vehicles and equipment to meet Part 139 standards. The vehicles will be acquired in accordance with minimum standards established in Part 139 and levels specified in Advisory Circulars 150/5210-6 and 150/5220-4. The vehicles and equipment acquired will be two 3,000 gallon trucks, the Rosenbauer Panther or similar OshKosh style truck, and personal protection equipment (such as helmets, gloves, boots, jackets, pants, etc.) This project will be for collection and use at the $4.50 level. EXPLANATION: The replacement of ARFF equipment serves to preserve safety at the Airport by supplying rescue personnel with modern, properly functioning equipment which meets FAA standards. This enables the personnel to respond appropriately and timely to emergencies on the airfield and in the terminal. This purchase is necessary to replace aging equipment that has exceeded its useful life at the recommendation of Part 139 inspectors. The acquisition of ARFF equipment is PFC eligible in accordance with FAA Order 5100.38C, paragraph 541(a). 11 SJU PFC #7 Application
07-004: Terminal Capacity Enhancement Program 12 SJU PFC #7 Application
07-004: Terminal Capacity Enhancement Program The Terminal Capacity Enhancement Program is estimated to cost $132,589,322 and add $148,613,742 to the PFC program (including eligible interest and financing costs). This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: The Terminal CEP increases and preserves capacity and competition at the Airport and enhances the safety and security of the terminals The primary components of the CEP are: Increased passenger check-in capacity and passenger queuing areas Increased passenger security screening capacity and efficiency through the consolidation of separate checkpoints into one larger checkpoint in Terminal B Increased inline screening capacity of checked baggage through the installation of a new automated inline baggage screening system Increased passenger conveniences including expanded restrooms, expanded holdrooms, and new aircraft services including pre-conditioned air and ground power. Increased terminal facilities for regional and commuter passengers and air carriers New international arrival capacity by connecting five gates in Terminal A and B to the existing FIS facilities through a new passenger connecting bridge. 13 SJU PFC #7 Application
07-004: Terminal Capacity Enhancement Program In order to maintain terminal capacity into the future, significant infrastructure upgrades, installations, and replacements will also be completed as part of the CEP. These include: Elevators, escalators, and moving walkways Air-conditioning Carpets and flooring Lighting, electrical, and public address systems Roofing Passenger circulation and walkways 14 SJU PFC #7 Application
07-005: Environmental Assessment for the Runway 8-26 ROFA and Drainage System Rehabilitation 15 SJU PFC #7 Application
07-005: Environmental Assessment for the Runway 8-26 ROFA and Drainage System Rehabilitation The ROFA obstruction - Environmental Assessment project is estimated to cost $1,000,000 and add $300,000 to the PFC program This project will be for collection and use at the $3.00 level. DESCRIPTION OF PROJECT: SJU s airfield is built on an estuary, which presents drainage concerns. The Sponsor wishes to undertake an Environmental Assessment of the airfield to review possibilities for improving drainage and reducing instances of flooding. The assessment will provide alternative scenarios on how to prevent future Runway Object Free Area (ROFA) obstructions. The Environmental Assessment would cover all drainage areas within the Airport. This includes conducting a Hydrologic-Hydraulic Study of the entire Airport, a detailed topographic survey of drainage canals, alternatives analysis, Environmental Assessment creation, regulatory agency coordination, mitigation design, and Finding of No Significant Impact (FONSI) permitting. EXPLANATION: The Environmental Assessment is needed to assess and find solutions to current flooding and sedimentation issues, wetlands management needs, the critical condition of drainage channels, the potential lack of conveyance of the drainage system, safety needs, and recent issues within the ROFA area. Environmental assessments are eligible per FAA Order 5100-38C, paragraph 406(s). 16 SJU PFC #7 Application
07-006: Wildlife Management Equipment The Wildlife Management Equipment project is estimated to cost and add $200,000 to the PFC program. This project will be for collection and use at the $3.00 level. DESCRIPTION OF PROJECT: This project includes the purchase of a 4x4 vehicle with an extended cabin and covered bed, and outfitting it with a siren and lights. Additionally, the Airport will be procuring wildlife management software with GPS capabilities and additional necessary equipment, such as cages, binoculars, cameras, and rafts. EXPLANATION: Wildlife at an Airport can pose a serious threat to aircraft operations. The Airport does not currently possess adequate equipment for wildlife management, and as a result local and migratory species present additional hazards. Wildlife Hazard Reduction Equipment is eligible in accordance with FAA Order 5100-38C, paragraph 584 (b). 17 SJU PFC #7 Application
07-007: Airfield Signage Improvements Runway 8-26 The Airfield Signage Improvements project is estimated to cost $725,000 and add $217,500 to the PFC program. This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: This project will include the design, planning, acquisition and installation of new airfield guide signs in accordance with required standards and to satisfy noted deficiencies during annual Part 139 inspection. New reflective and lighted airfield signage will be installed in mandatory locations or where necessary to provide information or guidance to pilots in accordance with Advisory Circular 150/5340-18, Standards for Airport Sign Systems. The installation and/or relocation of signs will include distance remaining signs on Runway 8-26, hold short, directional and intersection signage and marking. EXPLANATION: Some of the existing airfield signs are deteriorating and do not meet FAA standards. The Airport received a Discrepancy Notice after its most recent inspection. The installation of the new signage will preserve safety on the airfield by providing clear guidance to aircraft and ground vehicles. Runway signage is PFC-eligible in accordance with FAA Order 5100.38C, paragraph 532 (a). 18 SJU PFC #7 Application
07-008: PFC Application Development The PFC Application Development is estimated to cost and add $150,000 to the PFC program. This project will be for collection and use at the $3.00 level. DESCRIPTION OF PROJECT: Aerostar is seeking the reimbursement of fees for consulting services related to the preparation of the current PFC application, as well as the administration, management, and tracking of the PFC program at the Airport. EXPLANATION: Projects included in the current PFC application meet the requirements and objectives of approved PFC projects. Funding the cost of preparation and administration of the PFC program with PFC revenues (i) helps the Airport keep operating costs down, (ii) increases the Airport s overall funding capacity, and (iii) enables the Airport to keep airline costs as low as possible. The professional services fees support the administration of the PFC program which accomplishes a variety of the objectives of the PFC program. PFC administrative costs are eligible per the PFC regulations under 14 CFR, paragraph 158.13(b). 19 SJU PFC #7 Application
07-009: Runway 8/26 Overlay 20 SJU PFC #7 Application
07-009: Runway 8/26 Overlay The Runway 8/26 Overlay is estimated to cost $10,000,000 and add $4,633,324 to the PFC program including interest and financing costs. This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: Runway 8-26 is the Airport s primary runway for take-off operations. Intended scope includes milling and overlay of a minimum of 3 inches with some areas requiring variable milling. This milling will occur on the total runway width and 9,080 feet in length between stations 105+20 to 196+00. Application of bituminous tack coat and bituminous prime coat between layers will also be required. The runway asphalt milling will require new runway and taxiway pavement markings painting when completed. EXPLANATION: The Runway 8-26 pavement is in poor condition and requires rehabilitation/overlay as outlined in the Airport s Pavement Management Plan/FAA guidance for a visual inspection process, consistent with AC 150/5380 and 71. The asphalt pavement has deteriorated and shows signs of oxidation, alligator-cracking, rutting, and raveling as defined under common visual FAA guidelines. This rehabilitation is required to maintain the safety of the runway as well as preserving airfield capacity. Runway pavement rehabilitation is eligible under FAA Order 5100-38C, paragraph 520(a). 21 SJU PFC #7 Application
07-010: Taxiway Mike Widening and VSR Phase 1 Design 22 SJU PFC #7 Application
07-010: Taxiway Mike Widening and VSR Phase 1 Design The Taxiway Mike Widening and Vehicle Service Road Phase 1 Design project is estimated to cost $300,000 and add $90,000 to the PFC program. This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: This project will develop construction documents defining the widening of taxiway Mike and construction of a Vehicle Service Road (VSR). This project is to widen the taxiway by 25 feet, in order to make it a standard width and allow for a 25 foot Vehicle Service Road. Design efforts will provide a full construction documents package, inclusive of pavement, marking, and signage and lighting consistent with FAA requirements. EXPLANATION: The design phase will allow the project to proceed to construction. This project will enhance safety by widening Taxiway M to a standard width for larger aircraft to use. Additionally, it will allow for the construction of a VSR to facilitate movement of vehicles around the airfield without having to use the taxiway. 23 SJU PFC #7 Application
07-011: Taxiway November Reconstruction 24 SJU PFC #7 Application
07-011: Taxiway November Reconstruction The Taxiway November Reconstruction is estimated to cost $40,000,000 and add $20,653,330 to the PFC program. This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: The taxiway reconstruction project will likely consist of 18 inches of P-501 PCC surface course, 4 inches of P-401 bituminous base, 6 inches of P-209 crushed aggregate base course, and a P-154 stabilization fabric that provides separation from the P-152 subgrade.. The reconstruction project will utilize two storm sewer systems, one slot drain pipe connected to a drainage pipe and oil/water separator, which will be constructed parallel to the proposed taxiway, one system on each side of the taxiway. EXPLANATION: Taxiway November has an overall length of approximately 3,000 feet by 200 feet wide and is bordered by the Passenger Terminal Ramp and General Aviation apron. Most of the existing pavement is concrete and was constructed in the late 1950 s. In recent years, the pavement condition has deteriorated to the point that stop-gap isolated repairs will no longer be sufficient to maintain a safe and structurally sound taxiway. This reconstruction is required to maintain the safety of the airfield as well as preserving airport capacity. Taxiway reconstruction is eligible for PFC funding in accordance with FAA Order 5100-38C, paragraph 520 (a). 25 SJU PFC #7 Application
07-012: Taxiway Sierra Reconstruction 26 SJU PFC #7 Application
07-012: Taxiway Sierra Reconstruction The Taxiway Sierra Reconstruction is estimated to cost $10,000,000 and add $2,500,000 to the PFC program. This project will be for collection and use at the $4.50 level. DESCRIPTION OF PROJECT: Taxiway Sierra is the primary taxiway for Runway 8-26. In 2005, a Pavement Condition Index (PCI) was done and indicated load related and non-load related distresses in all pavement sections surveyed. A pavement distress survey was conducted again in 2009 to validate surface distresses. Reconstruction was done using a combination of full depth replacement of existing asphalt and concrete pavement sections, and partial and/or full milling and overlay. Taxiway edge lighting fixtures were removed and replaced, and a shoulder rejuvenator was applied. EXPLANATION: Taxiway Sierra was in need of reconstruction due to its poor pavement condition, high traffic volume, and its overall importance as the primary parallel taxiway to the main departure runway. Additionally, airlines have reported numerous instances of damage caused by Foreign Object Debris, including severe engine damage during taxiing. This reconstruction is required to maintain the safety of the airfield as well as preserving airport capacity. Taxiway reconstruction is eligible for PFC funding in accordance with FAA Order 5100-38C, paragraph 520 (a). 27 SJU PFC #7 Application
07-013: Ten-year Master Plan Update The Ten-year Master Plan Update is estimated to cost $2,200,00 and add $660,000 to the PFC program. This project will be for collection and use at the $3.00 level. DESCRIPTION OF PROJECT: Aerostar will undertake a Master Plan update to address modernization and/or expansion of the Airport. The update will represent Sponsor-approved actions to be accomplished for the phased development of the Airport and the research as well as logic from which the plan evolved, and present the plan in a graphic and written report. Master Plan updates will be done in accordance with the guidance contained in Advisory Circular 150/5057-6. EXPLANATION: The update to the Master Plan will allow for prudent planning to ensure that the Airport continues to qualify for grant funds which are used to preserve and maintain facilities necessary for the continued safe and effective operation of the Airport. The last Master Plan was completed in 2000. Since then, there has been large changes in the airline mix, and the Airport has transitioned from a connecting hub to more of an Origin- Destination market. These documents will be updated to ensure that the Airport develops in a manner consistent with changing demand patterns and growth trends. Master Plan Updates are PFC-eligible in accordance with FAA Order 5100.38C, paragraph 401(e)(2). 28 SJU PFC #7 Application
Planned PFC #7 Uses PFC PFC Bond Financing Subtotal Paygo Capital And Interest 07 001 Airport Perimeter Security System 1,800,000 $ 1,800,000 $ $ 07 002 ARFF Demo of Building #29 600,000 600,000 07 003 ARFF Trucks and Equipment 750,000 750,000 07 004 Terminal Capacity Enhancement Program* 148,613,742 77,878,323 45,800,000 24,935,419 07 005 Environmental Assessment for the Runway 8 26 300,000 300,000 ROFA and Drainage System Rehabilitation 07 006 Wildlife Management Equipment 200,000 200,000 07 007 Runway 8/26 Airfield Signage Improvements 217,500 217,500 07 008 PFC Application Development 150,000 150,000 07 009 Runway 8/26 Overlay 4,633,324 3,000,000 1,633,324 07 010 Taxiway Mike Widening and VSR 90,000 90,000 07 011 Taxiway November Reconstruction 20,653,330 18,800,000 1,200,000 653,330 07 012 Taxiway Sierra Reconstruction 2,500,000 2,500,000 07 013 Ten year Master Plan Update 660,000 660,000 Total $ 181,167,896 $ 103,945,823 $ 50,000,000 $ 27,222,073 29 SJU PFC #7 Application
Plan of Finance PFC #7 Total PFC AIP Sponsor Project Costs (Paygo +Capital) Grants Funds 07 001 Airport Perimeter Security System 6,000,000 $ 1,800,000 $ 4,200,000 $ 07 002 ARFF Demo of Building #29 2,000,000 600,000 1,400,000 07 003 ARFF Trucks and Equipment 2,500,000 750,000 1,750,000 07 004 Terminal Capacity Enhancement Program* 132,589,322 123,678,323 8,910,999 07 005 Environmental Assessment for the Runway 8 26 1,000,000 300,000 700,000 ROFA and Drainage System Rehabilitation 07 006 Wildlife Management Equipment 200,000 200,000 07 007 Runway 8/26 Airfield Signage Improvements 725,000 217,500 507,500 07 008 PFC Application Development 150,000 150,000 07 009 Runway 8/26 Overlay* 10,000,000 3,000,000 7,000,000 07 010 Taxiway Mike Widening and VSR 300,000 90,000 210,000 07 011 Taxiway November Reconstruction* 40,000,000 20,000,000 20,000,000 07 012 Taxiway Sierra Reconstruction 10,000,000 2,500,000 7,500,000 07 013 Ten year Master Plan Update 2,200,000 660,000 1,540,000 Total $ 207,664,322 $ 153,945,823 $ 44,807,500 $ 8,910,999 *PFC and Total Project Costs exclude PFC financing and interest 30 SJU PFC #7 Application
Administrative Matters Aerostar would like include an exemption for carriers classified as Air Taxi/Commercial Operators filing FAA Form 1800-31 and operating at SJU from paying PFCs. An exemption is also requested for any carriers with only un-scheduled operations and less than 750 annual enplanements at SJU. Given the number of small, seasonal, and infrequent carriers, collecting from these operators may be cost prohibitive. A full list of exempted carriers and their 2012 enplanements is below: Form 1800 31 Carriers 2012 Enplanements Camera Work Inc. 630 Total Form 1800 31 Carriers 630 Unscheduled Carriers Percent Total AirportEnplanements 0.01% Air Transport International 215 North American Airlines 30 Omni Air Express 174 Ryan Air International 112 Total Unscheduled Carriers 531 Percent of Total Airport Enplanements 0.01% 31 SJU PFC #7 Application
Administrative Matters Airline deadline for certification of agreement or disagreement is Saturday, January 18, 2014 Public deadline for submitting comments is Saturday, January 18, 2014 Send comments to: Josephine Torres Federal Funds Supervisor Aerostar Josephine.torres@aerostarairports.com 32 SJU PFC #7 Application