4^ Council '^'^ ^ 25 January 2016-2015-2035 Airport Masterplan and Associated Revenue and Expenses 2016/17 DC No: 14 Purpose 1. To appve the revised 2015-2035 Airport Masterplan. 2. To outline the financial implications of bringing forward and adding further capital expenditure in the 2016/17 Annual Plan. Executive Summary 3. The revised 2015-2035 Airport Masterplan (Attachment A) shows no operational restrictions for the Airport thugh to 2035 pvided additional operational and public area, as indicated in the Masterplan, are developed as needed. 4. The Airport Masterplan should be reviewed again no later than 2020. 5. All depreciation and debt resulting fm the additional capital expenditure pposed for 2016/17 can be funded by the associated additional revenue with no requirement for rate funding. Recommendations That the Council: (a) (b) Receive Report (DC 14) - 2015-2035 Airport Masterplan and Associated Revenue and Expenses 2016/17. Appve the 2015-2035 Airport Masterplan. (c) Appve operating revenue and expenses relating to $4.5m capex in 2016/17. Discussion 6. The Airport Masterplan was due for a five yearly review in 2015. The review is timely as there has been significant gwth in recent years which is forecast to continue. A number of industry developments in the later part of 2015 will also affect the Airport's operational capabilities. 7. The review has looked at the Airport's ability to meet these demands by developing in accordance with the existing Masterplan. 8. The review has found increased terminal space is required for baggage, airline offices and passenger lounge areas as well as the pvision of space for likely future security enhancements. Due to the globalisation of terrism, the latter is required much sooner than previously planned. Additional and bught forward capex has -1 - Objective ID: A6752024
TauranqaOty 223 Council 25 January 2016 been included in the 2016/17 draft Annual Plan. The - 2015-2035 Master Plan is pvided as Attachment A to this report. 9. The review also identified future expansion requirements other than those needed immediately such as car park, further terminal and apn area requirements. 10. The additional capex requirements in the 2016/17 draft Annual Plan has the financial implications as shown in the table below. All depreciation and debt resulting fm the total capex of $4.5m (both bught forward and additional capex) can be funded by the additional revenues associated with the expansion with no requirement for rate funding. Effect of $4.5m Investment in 2015/16 LTP Budget $000's 2016/2017 LTP Budget (inflated) $000's Changes relating to $4.5m $000's Other Changes $000's Draft AP 2016/2017 $000's Operating Revenue 4,647 4,794 375 74 5,243 Other Operating Expenditure 1,919 2,052 301 117 2,470 Depreciation" 919 975 (25) 950 Finance Costs*'* 91 101 58 (17) 142 Total Operating Expenditure 2,929 3,128 359 75 3,562 Operating Surplus 1,718 1,666 16 (1) 1,681 Capital Expenditure 586 899 4,500 5,376 *Depreciation will not come into effect until 2018 (estimated depreciation$42k) ** 6 months debt servicing DC No: 14 Objective ID: A6752024
^^^A. 224 Council ^ ri. 25 January 2016 TauranqaOty ' Consideration strategic Context 11. The Airport Activity pvides air transport services to connect Tauranga with the rest of the country and the world. This activity makes a significant contribution to the community outcome of "A talented and innovative city full of opportunity." Significance and Engagement 12. Under the Significance and Engagement Policv 2014. this decision is of medium significance as it is likely to have moderate public interest and have moderate consequences for the city in terms of the future operation of the Airport Activity. Most of the capex funding is budgeted in the latter years of 2015/25 LTP. Implementation 13. The revised Master Plan will be used for all Master planning going forward. 14. The $4.5m capex planning and design will commence ASAP. Attachments No. Title Master Plan Update - Summary Report - 11 January 2016 Objective: ID: A6783381 Signatories Authors Ray Dumble: Manager Airport Authoriser Jaine Lovell-Gadd: General Manager: City Transformation DC No: 14.. Objective ID: A6752024
Attachment A TAURANGA AIRPORT MASTER PLAN UPDATE SUMMARY REPORT 11 JANUARY 2016 71 CP fi) O f 3
AIRPORT MASTER PLAN SUMMARY 1. INTRODUCTION Airbiz was appointed by Authority to prepare an updated Airport Master Plan. The Airport Master Plan update was developed thugh a series of workshops with Airport Management and the Airport Committee. This report presents a summary of: The updated Airport Master Plan Annual passenger forecasts Apn and terminal layout concepts. 2. AIRPORT MASTER PLAN The updated Airport Master Plan is very similar to the previous Airport Master Plan. The most significant changes are the realignment of grass runways and the parallel taxiway of the main runway and the new locations fuel locations. This Airport Master Plan also shows revised apn and terminal reserves. The updated Airport Master Plan is shown in Figure 1. m Am 71 11955r02a TRG MP Summary.docx
r ~3 I' -it k»1 0 O 0 t+0+ + 0 1825rTi X 45m Runway 870 X 45m Grass Runway strip -.vv> > «220rT, Strip Ls 0 1 Passenger Terminal 2 Apn 3 Contl Tower 4 Rescue Flre Station 5 Fuel 6 Aviation Education 7 Helicopter FATOn'ALO 8 Possible Future RESA 9 NDB/DME 10 Public Viewing Area 11 Car Rental 12 General Aviation Hangars 13 Gliding and Aviation Tourism 14 Unjpa (Burial Gund) Airfield General Aviation Roads Carparking Commercial Urupa Extension Reserve Green Space DRAFT - FIGURE 1 Airport Master Plan mm ^ 11955r02a TRG MP 5ummary.docx
3. ANNUAL FORECASTS There are three gwth scenarios for which annual passengers were forecast. The three scenarios are presented in Table 2 and the annual passenger forecast is presented in Table 3 and Figure 4. Scenario Jetstar Ppensity to Travel Low Medium High No service WLG service October 2016 WLG service October 2016 Unchanged Increased Further Increased TABLE 2 Forecast Scenarios Passengers FY2015 FY2020 FY2025 FY2035 Low 295,000 351,000 372,000 402,000 Medium 295,000 400,000 441,000 499,000 High 295,000 460,000 549,000 630,000 CAGR 2015-2020 2020-2035 2015-2035 Low 3.5% 0.9% 1.6% Medium 6.3% 1.5% 2.7% High 9.3% 2.1% 3.9% TABLE 3 Annual Passenger Forecast on mm ^ 11955r02a TRG MP Summary.docx
700,000 High 600,000 Medium S 500,000 - c Low!2 400,000 - Z Historic n Q. 300,000 c < 200,000 Annual Passenger Forecast 100,000 M I - > l - > l - > l - > N J N J N J N J N J M N ) N J M N J t > J r O K J N J t v J t v J N J v j I D I O I D I D I D O O O O O O O O O O O O O O O O O O l 0 l D U 3 l D U 3 O O O O O I - > l - > l -» l - > h.» N J I V J I V J M N J U J U l < J J i - > U ) ( j i > j i D i - ' L o t n ^ t D M O i ) i / i ^ i f l i - > U ) i n v j i o i - i u ) L n FIGURE 4 Annual Passenger Forecast 4. MASTER PLAN APRON LAYOUTS The scheduled aircraft stand demand forecast for Fy2035 is given in Table 5 below: to Scenario Low Medium High FY2035 Stand Demand 4 6 8 TABLE 5 FY2035 Aircraft Stand Demand /IRBIZ ^ 11955r02a TRG MP Summary.docx
I Terminal Reserve FIGURE 6 FY2035 Free Manoeuvring Apn Layout w /IlliUIZ ^ Tauranga Airport 11955r02a TRG MP Summary.docx
931.» «Terminal Reserve FIGURE 7 Rr2035 Pushback Apn Layout CO Awmi. ^ 11955r02a TRG MP Summary.docx
SHORT TERM TERMINAL CONCEPT The requirement to expand the passenger terminal has been identified. This requirement is driven by the following factors: Gwth of Air New Zealand Intduction of Jetstar services Additional aircraft stands. As part of the planning for a terminal expansion the potential for the intduction of additional security screening requirements for passengers, cabin and hold baggage have been considered. A terminal expansion concept for FY2020 has been developed that accounts for current state of security screening as well as the potential intduction of passenger, cabin and hold baggage screening. The following terminal layout drawings are shown: Existing gund floor Existing first floor 2020 gund floor without security screening 2020 gund floor with security screening 2020 first floor Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 CO /IRBIZ 11955r02a TRG MP Summary.docx
r r ICF"; a r BOH -1 LJ 1^ 3 AIR NZ OFFICES BAGGAGE MAKE-UP BAGGAGE CLAIM y NJ 1.. SECURITY F= AIR NZ OFFICES AIR NZ CHECK-IN t r IB F&B SEATING BBB.. I..laijl.^. I RETAIL BOH F y ^ DEPARTURE LOUNGE CO CO I n i I DOM DEP PAX ^> DOM ARR PAX FIGURE 8 Existmg Gund Floor /IRBIZ ^ 11955r02a TRG MP Summary.docx
AIRPORT OFFICE 13 ET AIRLINE LOUNGE y ^Vi I CO DOM DEP PAX 'y DOM ARR PAX FIGURE 9 Existing First Floor /IBBIZ ^ 11955r02a TRG MP Summary.docx
BAGGAGE MAKE-UP rr nn 2i 7 Y r" AIRLINE OFFICES F&B SEATING DEPARTURE LOUNGE BOH TOILETS CAR RENTAL BAGGAGE CLAIM Y t 1 a CHECK-IN r CAR RENTAL. I 4^1 TOILETS F&B RETAIL BOH r DOM DEP PAX > DOM ARR PAX FIGURE 10 FY2020 Gund Floor without Security Screening /IRBIZ ^ 10 11955r02a TRG MP Summary.docx
BAGGAGE MAKE-UP HD BOH 7 Lml4 Y t SCREENED BOARDIN AIRLINE OFFICES BOH TOILETS CAR RENTAL BAGGAGE CLAIM ' I I I ) Y 3' I l& O O O t 1 CHECK-IN CAR RENTAL r I FUR F&B DEPARTURE UNSCREENED SEATING LOUNGE BOARDING if TOILETS F&B RETAIL SECURITY >CREENIN( CO DOM DEP PAX > DOM ARR PAX FIGURE 11 FY2020 Gund Floor with Security Screening /IRBIZ ^ 11 11955r02a TRG MP Summary.docx
AIRLINE LOUNGE AIRPORT OFFICE TOILETS 3 CO DOM DEP PAX > DOM ARR PAX FIGURE 12 Fy2020 First Fioor /IRBIZ ^ 12 11955r02a TRG MP Summary.docx