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Oregon Aviation Board Meeting July 19, 2018

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Oregon Aviation Board Meeting July 19, 2018 ITEM 1 | ITEM 2 | ITEM 3 | ITEM 4 | ITEM 5 | ITEM 6 | ITEM 7 | ITEM 8 | ITEM 9 | ITEM 10 | ITEM 11 | ITEM 12 | ITEM 13 | ITEM 14 | ITEM 15 | ITEM 16 | ITEM 17 OREGON AVIATION BOARD MEETING JULY 19, 2018 (503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION ITEM 1 | ITEM 2 | ITEM 3 | ITEM 4 | ITEM 5 | ITEM 6 | ITEM 7 | ITEM 8 | ITEM 9 | ITEM 10 | ITEM 11 | ITEM 12 | ITEM 13 | ITEM 14 | ITEM 15 | ITEM 16 | ITEM 17 AGENDA ITEM NO. TYPE START ITEM LEAD(S) 1 Info 9:00 Call to order & introductions Meeker 2 Action 9:05 Approve Consent Agenda Meeker 3 Info 9:10 Public Comments (Limited to 2 minutes per speaker) Meeker 4 Action 9:20 Vote- policy option Packages (POPs) Forest 5 Info 9:50 Planning & Programs Division Update Peck/Caines 6 Info 10:00 UAS Permanent Rulemaking Ramos 7 Info 10:10 Airports & Operations Division Update Maass/Meeker 8 Info 10:30 Pendleton UAS Test Range Update Chrisman 9 Info 10:35 OMIC Presentation Campbell 10 Info 10:50 Vacant Board Member Discussion Meeker 11 11:05 Break 12 Info 11:15 STEM Panel Presentations Bornstedt 13 Info 11:45 STEM Panel Discussion Bornstedt 14 Info 12:45 STEM Panel Summary Bornstedt 15 Info 12:50 Closing Remarks Meeker 16 1:00 Adjourn 17 Social 1:00 STEM Networking & Ice Cream Social ITEM 1 | ITEM 2 | ITEM 3 | ITEM 4 | ITEM 5 | ITEM 6 | ITEM 7 | ITEM 8 | ITEM 9 | ITEM 10 | ITEM 11 | ITEM 12 | ITEM 13 | ITEM 14 | ITEM 15 | ITEM 16 | ITEM 17 CONSENT AGENDA APPROVAL . … . … ITEM 1 | ITEM 2 | ITEM 3 | ITEM 4 | ITEM 5 | ITEM 6 | ITEM 7 | ITEM 8 | ITEM 9 | ITEM 10 | ITEM 11 | ITEM 12 | ITEM 13 | ITEM 14 | ITEM 15 | ITEM 16 | ITEM 17 PUBLIC COMMENTS (Limited to 2 minutes per speaker) ITEM 1 | ITEM 2 | ITEM 3 | ITEM 4 | ITEM 5 | ITEM 6 | ITEM 7 | ITEM 8 | ITEM 9 | ITEM 10 Financial/Administration Division Update Vote- Policy Option Packages POP Background & Budget Development Timeline . POPS- Policy Decision to Increase or Reduce Program Expenditures . LCs with Fiscal enter as POP in ARB (POP 102) . March Board Meeting- Draft LCs, May–Final LCs . LCs Submitted to DAS, LFO, CFO, Governor's Office . Current Status LCs with Legislative Council have not begun drafting . Next Steps . ARB including POPS Submit August 1st . LCs & ARB go through Legislative Process ODA STAFF REPORT Action Item: Vote on Policy Option Packages Date: July 19, 2018 Presented by: Kristen Forest, Business & Manager BACKGROUND: As part of the 19-21 budget build process each agency has a chance to add policy enhancements on top of the essential budget level. Policy decisions to either increase or reduce programs or expenditures are made through a series of Policy Option Packages that we refer to as POPs. Any legislative concept that the agency has submitted that has a fiscal impact on the agency is submitted as a POP. The POP serves as a means to increase the limitation or budget. For this budget cycle POP 102 to eliminate the sunset and increase the fuel tax has been presented to this board as a Legislative Concept (LC), first in draft and second in the final form and has been submitted to the Legislative Counsel. The status of this LC is that the Legislative Counsel has not started drafting yet. In addition to this POP we have nine others including but not limited to all of our general aviation entitlement projects, capital construction projects, and a federal funded state wide disparity study. A narrative of each is included in the read-ahead package. The Aviation Board’s role is to review and approve all Policy Option Packages before submission. When reviewing the policy packages, the board members will want to ensure that the requests are aligned with the mission and goals of the agency. Next Step The POPS will be incorporated into the Agency Request budget which will be submitted to the Chief Financial Office of the State on August 1, 2018. At the September meeting the board will have a chance to review the entire Agency Request Budget. All Legislative Concepts are with the Legislative Counsel and they will begin drafting soon. Then they will become bills, which may be amended. If passed through the house and senate they will go to the governor’s desk for signature and then becomes law. RECOMMENDATION: Staff is recommending the Board consider approval of all of the POPs. ** Please ask any clarifying questions during the meeting ** BUDGET NARRATIVE POLICY PACKAGE #100 Deferred Maintenance Salem Office Building Roof Rehabilitation Operations Request: $160,000 OF PURPOSE To ensure that the Agency Budget complies with Senate Bill 1067(2017) agencies that own state buildings and infrastructure are requested to include Policy packages, which at a minimum bring the agencies total deferred maintenance and capital improvements budget to a level of two percent of the current replacement value of buildings and infrastructure owned. The Oregon Department of Aviation’s total replacement value of building and infrastructure owned is $7,994,638. This POP will put the agencies total deferred maintenance and capital improvement budget above two percent. This project consists of a partial rehabilitation of the roof at the Salem Office Building. The current roof is over thirty years old and in need of repair. This project will help keep the building safe for employees and decrease the total amount of deferred maintenance for the agency. HOW ACHIEVED The Department will work within state procurement guidelines to obtain a contractor to complete the rehabilitation. STAFFING IMPACT There are no additional staffing needs with this request. QUANTIFYING RESULTS Quantifying a successful project will be measured by the outcome of the project against the needs and criteria of the intent of the project. REVENUE SOURCE This revenue is 100% other funds, the majority of which is made up of jet fuel tax revenue and also includes a variety of other revenue streams. 2019-21 107BF02 X Agency Request Governor's Budget Legislatively Adopted Budget Page BUDGET NARRATIVE POLICY PACKAGE #101 Disparity Study Operations Request: $1,000,000 TF $900,000 FF $100,000 OF PURPOSE The upcoming disparity study, which ODA will be undertaking for the Federal Aviation Administration (FAA) starting in the summer of 2019, will evaluate if disadvantaged businesses have equal access to contracting opportunities on a statewide level. This study will examine race and gender based barriers to prime contractors or subcontractors when competing for FAA funded contracts, specifically looking at all cities and counties where FAA contracts are available for airports in the National Plan of Integrated Airport Systems (NPIAS). This $1 million dollar study also will compare the number of socially and economically disadvantaged firms to non- disadvantaged firms available to work on FAA contracts statewide for FAA funded work. Information gathered will provide airports with data to enhance their Disadvantage Business Enterprise (DBE) program in a way that is consistent with regulatory standards. When the study is complete (18-24 months), the DBE information will then be available for all airports in the NPIAS to utilize when creating their DBE programs, individual project work plans, Capital Improvement projects goals and overall project solicitations. HOW ACHIEVED Upon funding approval by the State Legislature, ODA will complete a RFP for a consultant to assist with this study and the associated deliverables in 2019. STAFFING IMPACT There are no additional staffing needs with this request. QUANTIFYING RESULTS Quantifying a successful project will be measured by the outcome of the project against the needs and criteria of the intent of the project, achieving FAA acceptance and delivering the project on schedule and within budget. REVENUE SOURCE 2019-21 107BF02 BUDGET NARRATIVE The majority of the funding, 90% is derived from FAA federal funds and the 10% matching portion is funded with other funds. This other funds portion made up of jet fuel tax revenue and a variety of other revenue streams. X Agency Request Governor's Budget Legislatively Adopted Budget Page 2019-21 107BF02 BUDGET NARRATIVE POLICY PACKAGE #102 Eliminate Sunset Fuel Tax Increase General Aviation Entitlement Request: $8,158,416 OF PURPOSE House Bill 2075 was introduced and passed during the 2015 Legislative Session. The measure amended ORS 319.020 by increasing 100LL aircraft fuel (avgas) tax from nine cents to eleven cents per gallon and increasing jet fuel tax from one cent to three cents per gallon. The Aviation System Action Program (ASAP) fund was created as a result of the passage of HB 2075 and directs the increased fuel tax revenue (after 5% is deducted for ODA’s administration costs) into the following three programs that benefit Oregon airports and aviation: Critical Oregon Airport Relief (COAR) program receives 50% of the funding. These grants are distributed to assist airports in Oregon with match requirements for Federal Aviation Administration (FAA) Airport Improvement Program grants, emergency preparedness and infrastructure projects in accordance with the Oregon Resilience Plan, services critical and essential to aviation, aviation related business development, and airport development for local economic benefit. Rural Oregon Aviation Relief (ROAR) receives 25% of the funding. These grants are used to assist commercial air service to rural Oregon. State Owned Airports Reserve (SOAR) program funds are distributed towards state-owned airports for the purposes of safety improvements and infrastructure projects at public use airports. House Bill 2075 became effective on January 1, 2016 and is set to sunset on January 2, 2022. Over the course of six years, the ASAP program is estimated to provide over $20M in funding to airports throughout Oregon.
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