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HomeMy WebLinkAbout01 - Table of ContentsFinal Report Georgetown Municipal Airport Business Case Analysis Prepared for City of Georgetown, TX August 2013 CH2MHILL® CH2M HILL Engineers, Inc. 11200 Richmond Ave, Ste. 300 Houston, TX 77082 COPYRIGHT 2013 BY CH2M HILL, INC. • COMPANY CONFIDENTIAL Contents Section Page Acronyms and Abbreviations v 1 Introduction 1 1.1 Purpose 1 1.2 Governing Assumptions 1 1.3 Process 1 2 Airport Background & Data Collection 3 2.1 Airport Background 3 2.1.1 Airport Management 6 2.2 Data Collection 6 2.2.1 Site Visit Stakeholder Meetings 7 2.2.2 Baseline Condition Assessment— Field Observations 7 3 Industry Best Practices 23 3.1 Background 23 3.2 Industry Best Practices 23 3.2.1 Case Study Airports — Overview 24 3.2.2 Case Study Airports — Summary of Interview Questions and Best Practices for GTU 26 3.3 Case Study Summary and Best Practices 39 3.4 Primary GTU Considerations 43 3.4.1 Airport Contract Tower 43 3.4.2 Fueling Options 43 3.4.3 Management Options 45 3.4.4 Administrative Implications 46 3.4.5 GTU Marketing /Branding 47 3.4.6 Physical Layout, Capital Program and Planning 48 3.4.7 Economic and Business Development 54 3.4.8 Maintenance Standards 58 3.4.9 Land Lease Documents 63 4 Best Practice Recommendations 67 4.1 Financial Improvement Recommendations for 2013 67 4.1.1 Short -Term Financial Improvement Recommendations, (0 -2 years) 67 4.1.2 Medium -Term Financial Improvement Recommendations, (2 -5 years) 68 4.1.3 Long -Term Financial Improvement Recommendations, (5 -15 years) 68 4.2 General Best Practice Recommendations 69 4.2.1 Operations /Safety and Security 69 4.2.2 Finance /Legal 69 4.2.3 Capital Development and Maintenance 70 4.2.4 Administration /Organizational 70 4.3 Minimum Standards /Rules & Regulations /Leases 72 5 Baseline Airport Operating /Finance Model 73 5.1 Introduction 73 5.2 Financial Operations 73 5.2.1 Operating Expenses 73 5.2.2 Historical Operating Expenses 73 5.2.3 Cost Center Accounting 73 GEORGETOWN MUNICIPAL AIRPORT BUSINESS CASE ANALYSIS COPYRIGHT 2013 BY CH2M HILL, INC. CONTENTS, CONTINUED Section Page 5.2.4 Projected Operating Expenses 73 5.3 Operating Revenues 73 5.3.1 Historical Operating Revenues 74 5.3.2 Baseline Revenue Scenario 74 5.3.3 Net Revenues 74 5.4 Debt Service 74 5.5 Conclusion 74 6 Primary Management Options 75 6.1 GTU Potential Management Options 75 6.2 Potential Management Options — Pros and Cons 77 6.3 Conclusion 79 Appendices A Site Visit Meeting Notes B Sample Lease Agreements C Current Rates and Charges Schedule D Conceptual P &L Statements Table D -1 City Managed Option D -1 Table D -2 Contract Management Option D -2 Table D -3 Full Privatization Option D -3 Table D -4 Exclusive Fueling Operation Tables D -4 Table D -5 Increased Fuel Prices D -5 E Airport Minimum Standards F Airport Rules and Regulations G Airport Comprehensive Zoning Ordinance H Lease Reversion Report I Developing an Airport Leasing Policy List of Tables 2 -1 Top 10 Fastest Growing Metro Areas from Apr -10 to July -11 4 2 -2 Top 10 Fastest Growing Counties from Apr -10 to July -11 4 2 -3 GTU Airport Data 5 2 -4 Georgetown Airport Pavement Condition Assessment 8 3 -1 Analysis of Conditions 23 3 -2 Comparable Airports Statistics 27 3 -3 Interview Responses: Operations, Safety and Security 28 3 -4 Interview Responses: Finance and Legal 30 3 -5 Interview Responses: Capital Development and Maintenance 32 GEORGETOWN MUNICIPAL AIRPORT BUSINESS CASE ANALYSIS COPYRIGHT 2013 BY CH2M HILL, INC. CONTENTS, CONTINUED 3 -6 Interview Responses: Administrative Organization 34 3 -7 Recommended Best Practices 39 3 -8 Best Practices Analysis 45 3 -9 The Current 20 Year Capital Program (Page 1) 47 3 -10 The Current 20 Year Capital Program (Page 2) 48 3 -11 Short Term Capital Projects 49 3 -12 GTU Runway Length Analysis 50 3 -13 GTU Runway Length Analysis 51 3 -14 Georgetown Airfield Pavement Condition Assessment 56 3 -15 Georgetown Facilities Condition Assessment 57 List of Figures 2 -1 Georgetown Municipal Airport Vicinity Map 3 2 -2 Georgetown Municipal Airport Aerial Image 6 3 -1 GTU Runway Length Chart 51 3 -2 GTU Developable Sites and Parcel Descriptions 54 3 -3 GTU Land Use Map and Building Identification 59 GEORGETOWN MUNICIPAL AIRPORT BUSINESS CASE ANALYSIS iii COPYRIGHT 2013 BY CH2M HILL, INC. Acronyms and Abbreviations AFSS Automated Flight Service Station AWO Arlington Municipal Airport CRG Craig Municipal Airport DTO Denton Municipal Airport FAA Federal Aviation Administration FBO Fixed Based Operator GO Bonds General Obligations Bonds GTU Georgetown Municipal Airport HEG Herlong Recreational Airport HYI San Marcos Municipal Airport JYO Leesburg Executive Airport MMU Morristown Municipal Airport Mogas An FAA - approved aviation fuel GEORGETOWN MUNICIPAL AIRPORT BUSINESS CASE ANALYSIS v COPYRIGHT 2013 BY CH2M HILL, INC.