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Aviation Board Meeting Aviation Board Meeting April 02, 2020 Call to Order & Introductions Approve Consent Agenda February 11, 2020 Board Meeting Minutes Public Comments Limited to 2 Minutes per Speaker OREGON DEPARTMENT OF AVIATION Directors Update April 2, 2020 (503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION ODA Office operations • Teleworking/On-site staff Office open, by appointment only Minimum of two staff in office majority of staff are teleworking no end date, planning for this to continue until end of April • New staff Andrea Abrahamson– Fiscal Analyst, started Monday the 30th Anthony Beach – State Airports Manager, starts April 13 Hiring two summer temporary helpers for landscaping • Mary B. Baby boy, born 3/16 on maternity leave until mid-June Impact of Fuel tax revenue reduction Expecting significant decrease in fuel tax revenues, amount and duration unknown. March fuel tax #’s available mid-May. April #’s available mid-June, and will be the litmus test for how low they will go. We are guessing about 50% drop in March, and a 90% drop in April. Beyond April is difficult to estimate, depends on when distancing measures are relaxed, and how soon airlines resume prior schedules. 86% of annual operating revenue comes from the fuel tax 5% of revenue from aircraft registration 3.5% of revenue from leases 5.5% from fuel flowage, tie-down, special use, inspections, etc. These funds pay for agency operation as well as the grants programs. Annual operating cost (excluding grants and PMP) about $2.5M. Federal assistance for airports From the $2T CARE Act passed by Congress last week 1) $50B to airlines, $10B to airports 2) Of the $10B, $7.4B goes to the commercial service airports, $2B for AIP eligible projects, $500M for waiver of local match on 2020 grants, $56M for Essential Air Service, and $100M for NPIAS GA airports. 3) Of the $100M for GA airports, the amount will be a 100% grant, for any purpose airport revenues can be used for (i.e. operating costs), amount will be “based on the categories published in the most recent NPIAS (urban, regional, local, remote/emergency), reflecting the percentage of the aggregate published eligible development costs for each such category, then dividing the allocated funds evenly among the eligible airports in each category, rounding up to the nearest thousand dollars”.(With about 2800 NPIAS GA Airports, the average would be $36,000 each.) 4) OR has 12 Urban, 12 Regional, 27 Local and 39 remote/emergency airports State owned – 1 Urban, 1 Regional, 8 local and 1 remote that are NPIAS eligible. 1) Legislation also suspended the Aviation Excise taxes through December 31, 2020. These taxes go into the Aviation Trust Fund, and until recently were generating about $43M/day. Funds the FAA operations, F&E, R&D, EAS, AIP grants. Loss of taxes will have an impact on the 2021 grants. Short term Financials Current cash balance as of 4/1/20 $12.8M Ops $769K, A/C registration $841K, PMP $979K, ASAP $10.2M Enough cash in Ops for ~4 months of expenses Encumbered/committed $6.2M COAR $2.2M SOAR $2.3M ROAR $500K PMP $752K 10% match on FAA Siletz Bay and Condon $150K ?? 10% match on System plan $25K ?? Misc. existing contracts $300K We will need to go to E-Board in mid-May to request approval to transfer funds from the restricted accounts to operating account. Cost Containment efforts PMP 2020 may be postponed (15 airports in southern OR) $1M SOAR 2019 projects postponed $1.46M Pacific City, Toledo, Aurora, Cape Blanco Cascade Locks, Mulino Prospect runway reconstruction $1.5M Mulino water improvements $500K Spring Special Grant cycle cancelled 100th anniversary activities cancelled Hiring freeze (one vacant operations position) Travel freeze (other than in-state maintenance) Projects we are moving forward with Siletz Bay taxiway rehab (90-100% Federal) $562,795 Condon runway rehab (90-100% federal) $907,076 COAR 2019 (23 projects) 100% ODA $2,300,000 PMP 2019 (valley and coastal airports) $751,879 Design work on Aurora, Chiloquin & Mulino obstruction removal Design work on Cottage Grove & Independence fence installation Design on Prospect runway rehab Goal is to have projects ready to bid if pop-up discretionary federal funds become available. QUESTIONS? (503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION Finance & Admin Division Update Finance & Admin Division Update Fuel Tax Revenue Overview 6 Month Forecast – Our Original Forecast Before Reduction % Program Revenue Current Forecast TOTAL FUEL TAX REVENUE From Fuel Tax Operations 876,843 66% PMP 617,847 100% COAR 1,154,983 100% ROAR 577,492 100% SOAR 577,492 100% ASAP Program Total 2,309,967 100% Fuel Tax Total 3,804,657 Finance & Admin Division Update Effect of Reduction in Jet Fuel Tax Revenue over 6 months Gallons sold in March will hit our revenue at the end of May Current Forecast 25% Reduction 50% Reduction 75% Reduction Operations $ 876,843 $ 657,632 $ 438,422 $ 219,211 PMP $ 617,847 $ 463,385 $ 308,923 $ 154,462 COAR $ 1,154,983 $ 866,238 $ 577,492 $ 288,746 ROAR $ 577,492 $ 433,119 $ 288,746 $ 144,373 SOAR $ 577,492 $ 433,119 $ 288,746 $ 144,373 ASAP Program Total $ 2,309,967 $ 1,732,475 $ 1,154,983 $ 577,492 Fuel Tax Total $ 3,804,657 $ 2,853,492 $1,902,328 $ 951,164 Finance & Admin Division Update State Limitations & Cash Balances as of April 1, 2020 Expenditures Available Remaining Airport or Program Limitation to Date Limitation Encumbrances Cash Balances Operations $ 5,078,638 $ 1,794,368 $ 3,284,270 $ 58,473 $ 768,734 Aircraft Registration 166,975 49,076 117,899 116,623 840,763 Pavement Maintenance 2,288,530 810,604 1,477,926 752,736 979,360 ASAP 9,305,361 633,267 8,672,094 4,935,173 10,238,553 TOTAL $ 16,839,504 $ 3,287,314 $ 13,552,190 $ 5,863,005 $ 12,827,410 State Disparity Study Update Keen Independent Research Oregon Department of Aviation Oregon Statewide Airport DBE Disparity Study Annette Humm Keen, Principal David Keen, Principal Keen Independent Research LLC 701 N. 1st Street Phoenix, Arizona 85004 303-385-8515 [email protected] [email protected] Oregon Airport Management Association Board Teleconference April 2, 2020 Presentation to ODA Board 1. Purpose of the study 2. Study schedule 3. Contract data collection from individual airports 4. Availability survey 5. Other study progress 6. Opportunities for public participation 19 1. Purpose of the study ODA and local airports must implement the Federal DBE Program, per 49 CFR Part 26 Program applies to FAA-funded contracts Disparity study provides information to help ODA and each local airport: Set overall goals for DBE participation on FAA-funded contracts Consider whether they can achieve overall DBE goals solely through neutral means If need to use DBE contract goals, assess the specific race/ethnic/gender groups eligible for that program component USDOT instructed agencies to conduct disparity studies after 2005 Ninth Circuit decision in Western States Paving v. WSDOT FAA is requiring states to perform disparity studies and funding those studies (Port of Portland previously conducted a disparity study) 20 2. Study schedule Start AnnounceCollect study Startcontract to publicin-depth data Launchfrominterviews airports availability survey Perform disparity analysisPrepare information forPresent goalsObtain preliminary Preparefeedback results final report ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 2019 2020 2021 21 3a. Contract data for individual airports FAA-funded contracts awarded Oct. 1, 2014 – Sept. 30, 2019 Awards, including funding source, amount, type of work Information about prime contractors Information about subcontractors (names, dollars, types of work) General information about how contracts are awarded Any application of DBE contract goals 22 3b. 100% of airports provided contract data Airport name Airport name 1 Bend Municipal Airport 25 Bandon State Airport 2 Creswell Hobby Field Airport 26 Salem McNary Field Airport 3 Seaside Municipal Airport 27 Lake County Airport (Lakeview) 4 Chiloquin State Airport 28 Mulino State Airport 5 Condon State Pauling Field Airport 29 Ontario Municipal Airport 6 Independence State Airport 30 Newport Municipal Airport 7 Siletz Bay State Airport 31 Roseburg Regional Airport 8 Joseph State Airport 32 Madras Municipal Airport 9 Cottage Grove State Airport 33 Baker City Municipal Airport 10 Lebanon State Airport 34 Corvallis Municipal Airport 11 Florence Municipal Airport 35 La Grande/Union County Airport 12 Burns Municipal Airport 36 Eugene Airport Mahlon Sweet Field 13 Grants Pass Airport 37 Southwest OR Regional Airport 14 Gold Beach Municipal Airport 38 Lexington Airport 15 Klamath Falls Airport 39 Ken Jernstedt Airfield (Hood River) 16 Tillamook Airport 40 Illinois Valley Airport 17 McDermitt State Airport 41 Ashland Municipal Airport 18 Grant County Regional Airport Ogilvie Field (John Day) 42 Eastern Oregon Regional Airport - Pendleton 19 Redmond Municipal Airport (Roberts Field) 43 Scappoose Industrial Airpark 20 Rogue Valley International 44 McMinnville Municipal Airport 21 Prineville Airport 45 Albany Municipal Airport 22 Columbia Gorge Regional Airport (Dalles) 46 Astoria Regional Airport 23 Christmas Valley Airport 47 Hermiston Municipal Airport 24 Aurora State Airport 48 Brookings Airport 23 4. Availability surveys now being conducted 24 5. Other study progress Analyzed distribution of contract dollars by location of contracts and by types of work Continued in-depth personal
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