welcome to our august webinar! - ohio aviation association · – scheduled or nonscheduled air...

Welcome to our August Webinar!August 22, 2018 @ 2 pm Eastern

Reminders

• Everyone should be using their computer’s speakers to hear the webinar UNLESS you are in a poor bandwidth/internet connection area.

• If you are in a poor bandwidth/internet connection area, you can call-in to hear better. 888-392-4560; Participant PIN: 6836757. If you call-in on your phone – please mute your line and turn OFF your computer speakers.

• If you have a question, please type it into the Q&A section. If we can’t answer your question right away, we will follow-up with you.

About Your Presenter

Jose de LeonLead Program Manager, Chicago ADO• Jose de Leon is the Lead Program Manager in the Chicago Airports District Office (ADO)

in the Great Lakes Region of the FAA. Prior to rejoining the Chicago ADO, Jose served as an Airport Compliance Program Manager in the Great Lakes Region. He provided regional support on land releases, informal complaints, sponsor transfers, and land use and airport inspections. Additionally, he provided assistance to the ADOs in the Great Lakes Region ensuring Airport Sponsors adhered to their grant assurances. Jose has been providing support to the FAA as a contractor and federal employee since 2003.

• Jose will be discussing Navigating Compliance Issues. He will focus on grants and key associated assurances, the release of airport property and the processes to do so, and Part 13 or Part 16 complaints. Each section will touch upon the most common items pertaining to airport compliance.

Presented to:

By:

Date:

Federal AviationAdministrationAirport Compliance

Navigating Compliance Issues

Ohio Aviation Community

Jose G. de Leon, Program Manager

August 22, 2018

Federal AviationAdministration

Airport Compliance Grant Assurances

Essentially a contract

Funds are given in exchange for assurances regarding the airport and its operation and maintenance

Grant Assurances, as applicable, are required of all airport sponsors

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Grant Assurances

Are required by public law – Obligations imposed by contract and/or Federal Law

Are not a means to allow the FAA to control or direct the operation of an airport

Are intended to protect the Federal investment in the national airport system

Provide a basis for operating rules to meet the Sponsor’s Federal Obligations

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Sources of Obligations

Grant Agreements:Federal Aid to Airports Program (FAAP)Airport Development Aid Program (ADAP)Airport Improvement Program (AIP)

Surplus Property TransfersNonsurplus Property TransfersAP-4 AgreementsOther

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Duration of Obligations

That Depends…

Useful life of the facilities/project (20 years)

Common Obligations apply as long as the airport is an airport

FOREVER

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Key Grant Assurances

#5 – Preserving Rights and Powers #22 – Economic Nondiscrimination #23 – Exclusive Rights #25 – Airport Revenues

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# 5 – Rights and Powers

Ensure that current/future plans will not deprive the airport of its rights and powers

Review airports’ policies and procedures to ensure that you are not giving away rights and responsibilities


#22 – Economic Nondiscrimination

Airport open to all aeronautical users

Without unjust discrimination, unless restriction based on safety or efficiency

FAA makes final determination of safety and efficiency, including:

Safety & Efficiency Studies by Flight Standards and Air Traffic


Aeronautical Activity – Definition

Any activity that involves, makes possible, or is required for the operation of aircraft or that contributes to or is required for the safety of such operations.


Aeronautical Activity Includes But Is Not Limited To

– Air Taxi and Charter Operations– Scheduled or nonscheduled Air

Carrier Services– Pilot Training– Aircraft Rental and Sightseeing– Aerial Photography– Crop Dusting– Aerial Advertising and Surveying– Aircraft Sales and Service

– Aircraft Storage– Sale of Aviation Petroleum Products– Repair and Maintenance of Aircraft– Sale of Aircraft Parts– Parachute Activities– Ultralight Activities– Sport Pilot Activities– Military Flight Operations– Non-commercial construction of

amateur-built or kit-built aircraft



Examples of Aeronautical UsersGeneral Aviation Sport Aircraft (Ex. Paragliders)

Skydivers UltralightsAgricultural operators Banner Towers

Source: FAA



Adoption of REASONABLE Minimum Standards– May violate #22 if standards are too difficult to meet or unjustly

discriminate among similarly-situated aeronautical users. – Standards may pursue other goals:

• Efficiency • Legitimate airport business interests• Public aeronautical needs: level and scope of services


#23 – Exclusive Rights

No special privilege or monopoly to engage in aeronautical activity

Obligation continues as long as the airport is an airport

Also included in:– Surplus property conveyances– FAAP/ADAP/AIP grant agreements– Section 16/23/516 property conveyances– Common to all property transfers & grants


#25 – Airport Revenue

All revenues generated by the airport and any local taxes on aviation fuel (after 12/30/87), will be expended by it for the capital or operating costs of the airport, the local airport system…and which are directly and substantially related to the actual air transportation of passengers or property.


#25 – Airport Revenue

FAA’s Revenue Use Policy defines airport revenue and describes the permitted and prohibited uses of airport revenue.

Revenue generated by the airport for the aeronautical and nonaeronauticaluses, such as: • fees, • charges, • rents, • or other payments received by or accruing to the sponsor from users of airport property

and services


Grant Assurances

• Other grant assurances you are likely to encounter:– #4 Good Title– #19 Operation and Maintenance– #20 Hazard Removal and Mitigation– #24 Fee and Rental Structure– #29 Airport Layout Plan– #31 Disposal of Land

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Definition of “Release”

The formal, written authorization discharging and relinquishing the FAA’s right to enforce an airport’s contractual obligations.[FAA Order 5190.6B, 22.2]

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Types of Release Requests

Specific term (NEUP)Specific use requirement (aero to nonaero)All obligations in order to dispose of a specific parcel (land

release)All obligations in order to dispose of and close the airport

(full release)[FAA Order 5190.6B, 22.4(c)]

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Two Important Rules

1. FAA’s authority to amend, modify, or release a sponsor from a commitment/term/condition/obligation varies based on the obligating document.

2. Although the FAA may have the authority to amend, modify, or release a specific commitment/term/condition/obligation, it is NOT REQUIRED TO DO SO.

[FAA Order 5190.6B, 22.1 and 22.30]

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Review the Release Request1. What is being requested?2. Are the obligating documents included?3. Why is the release being requested?4. How will this benefit civil aviation?If land/facilities are involved:1. How is it used today?2. What is FMV?3. Sell v. rent analysis4. Where will money go?

[FAA Order 5190.6B, 22.24-26]

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FAA’s Evaluation of Request1. Is the request reasonable? Practicable?2. How would this affect the aeronautical use

of the airport?3. What is the net benefit to civil aviation?4. The compatibility of the proposal with the

needs of civil aviation.5. Will FAA need to coordinate the request

with any other federal agencies?6. Are there any environmental impacts?[FAA Order 5190.6B, 22.4, 22.9(b), 22.10, 22.33]

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Things the FAA Will Not Consider

• Economic development• Job creation• Benefits to other local interests/parties• Intangible benefits do not count towards FMV• Releasing the exclusive rights obligation unless sponsor

will dispose of the property

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Concurrent/Interim Use

• Concurrent: used for primary aeronautical purpose but also used for compatible revenue producing nonaeronauticalpurpose

• Interim Use: Use of dedicated aeronautical land for nonaviation purposes – not more than five years

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Non-Aeronautical Events• Grant Assurance 19: “Any proposal to

temporarily close the airport for non-aeronautical purposes must first be approved by the Secretary”

• Considerations:– Every airport is unique with different circumstances– What is being closed– What is the affect on aeronautical users– Safety– Benefit to the airport– Tenant and User support– FMV

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Part 13 and Part 16 Complaints

• Part 13 Complaints– Informal Complaints– Not a final determination

• Part 16 Complaints– Formal Complaints– Reviewed and adjudicated by FAA headquarters staff– Final agency determination

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Resourceshttps://www.faa.gov/airports/airport_compliance Order 5190.6B – FAA Airport Compliance Manual Policy and Procedures Concerning the Use of Airport

Revenue (Revenue Use Policy) Non-Aeronautical Use of Airport Hangars Policy Concerning Flying Club Operations AC 150/5190-6 Exclusive Rights AC 150/5190-7 Minimum Standards for Commercial

Aeronautical Activities AC 150/5100-17 Land Acquisition and Relocation

Assistance

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https://www.faa.gov/airports/airport_compliance


Questions

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Thank you for joining our August Webinar!

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welcome to our august webinar! - ohio aviation association · – scheduled or nonscheduled air...

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