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2019-190 FAR Part 139 Airport CertificationDate: December 6, 2019 Report No. 2019-190 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FAR Part 139 Airport Certification Update BACKGROUND: The topic of Denton Enterprise Airport pursuing a Federal Aviation Regulation (FAR) Part 139 Airport Operating Certificate (AOC) has been discussed for several years, including in the most recent 2015 Airport Master Plan. That document indicated that at the time local businesses were expressing interest in the City considering obtaining an AOC. By having an AOC, the Airport could serve unscheduled air carrier aircraft with a seating capacity greater than 30 seats. The process of obtaining an AOC consists of completing, submitting, maintaining and implementing an Airport Certification Manual (ACM). The level at which air carrier operations are desired (scheduled air service vs. unscheduled charter service) determines the level of responsibilities by the Airport, including daily safety inspections, recordkeeping, Aircraft Rescue and Firefighting (ARFF) equipment and personnel, emergency plans, and security protocols to mention a few. DISCUSSION: In determining the level of administrative and operational impacts associated with obtaining and maintaining an AOC, Airport staff requested the Federal Aviation Administration (FAA) Southwest Region Part 139 inspection team to visit our Airport. The FAA conducted two separate visits to conduct a preliminary evaluation of the Airport regarding FAR Part 139 requirements. While the FAA found several airfield areas that would need to ultimately be addressed, it was indicated that none were significant enough to prevent the City from making a request and likely obtaining an AOC. Most of the issues were either minor in nature or anticipated to be corrected with future FAA/TxDOT grant funding. It was stressed that both Airport and ARFF recordkeeping and personnel training would be an area where we would need to focus some attention. To better understand the dynamics of maintaining an AOC, Airport staff visited Tuscaloosa, Regional Airport (KTCL) in Tuscaloosa Alabama. This airport was chosen due to its similarities in anticipated Part 139 services provided for the University of Alabama (UA). It was determined that very large aircraft (Boeing 757) accommodating over 180 passengers were being utilized to support the UA football program. During that visit, many aspects of the day-to-day airport requirements were discussed. Also noted was that passenger screening is provided by a 3rd-party and conducted in the terminal building with minimal interaction by airport staff. The terminal building used to support scheduled passenger service many years prior, so no additional facilities were needed to support screening activities. It was also determined that the most difficult part of maintaining an AOC was associated with recordkeeping, responsiveness and personnel training. Date: December 6, 2019 Report No. 2019-190 Unscheduled Charter Services Airport staff also recently discussed the topic of potentially being able to accommodate aircraft charter services with both the University of North Texas (UNT) and Texas Woman’s University (TWU). Both athletics departments provided insight as to their desire or need for aircraft charter services that would require an AOC. UNT indicated that currently their charter services are conducted at Alliance Airport, as that airport is already certificated. The need for charter services is mainly associated with the transportation of the football team, however, the basketball program also has limited need. Like the UA program, UNT also uses very large aircraft (Airbus A320) to carry over 180 passengers. Airbus A320 TWU indicated that their very limited air travel needs are provided with airline services provided out of Dallas Love Field or DFW International Airport. TWU officials did not believe there would be a need for aircraft charter services out of Denton for the foreseeable future. In addition to the potential traffic from both universities, it is also possible to support activity associated with the various auto races held at Texas Motor Speedway (TMS). Staff has had conversations with the TMS staff regarding our efforts in pursuing an AOC to support the larger charter aircraft (e.g., CRJ-145). It is anticipated that the activity would likely be associated with race team travel. Lastly, while the current Airport staff has not had any recent contact, it is our understanding that several companies did express interest during the development of the Airport Master Plan in providing large aircraft business or vacation charters. Associated with this discussion was the potential need for U.S. Customs Service to support flights arriving from outside the United States. CRJ-145 Date: December 6, 2019 Report No. 2019-190 Airport Physical Capabilities The current design standards for the Airport are for large corporate aircraft. While some “charter” type aircraft are very similar, many are larger and heavier. The size of aircraft currently used by UNT are larger than the current capabilities of the Airport’s runway, taxiways, and apron parking facilities. If UNT were able to use smaller and more compatible size aircraft (e.g., Boeing 737), it is possible that our Airport could support their needs. It is anticipated that the limited need by the UNT basketball program would be for smaller and compatible aircraft (e.g., CRJ-145). It was estimated that less than 20 total operations annually could occur to support both programs. Cost of Maintaining an Airport Operating Certificate It is important to understand the requirements set forth by the FAA for the Airport to meet regardless of pursuing an AOC. Over the years, the City has accepted numerous FAA/TxDOT grants to improve and/or maintain the Airport. With the acceptance of those grants comes the associated “Grant Assurances”. There are 39 grant assurances, which are incumbent for a 20-year period from the date of accepting each grant. These obligations cover areas of airport management, record keeping, airfield maintenance, etc. The grant assurances are independent of the Part 139 requirements. Therefore, whether the City pursues Part 139 certification or not, the City is still required to maintain compliance with all grant assurances. There are two costs generally associated with maintaining an AOC: capital and operational. The capital costs would be associated with physical improvements or maintenance to the airfield (runway, taxiway, apron, safety areas, navigation aids, etc.) and ancillary facilities (terminal building, auto parking, etc.). In the case of airfield improvements, most improvements necessary to support Part 139 type aircraft are already in place and would only need annual maintenance at this time. In terms of ancillary facilities, those improvements may or may not be necessary to support activity and would be determined based on future levels of activities. Based on future Part 139 related activity levels, it is highly possible to obtain FAA grant funding which are typically 90% federal funding with a 10% local fund match for the planning, engineering and construction of any future improvements needed to support aircraft operating at the Airport requiring an AOC. As for operational cost, some of these costs are already included in the Airport’s annual budget and staffing level. The Airport is currently “operating” like a Part 139 certificated airport by providing enhanced safety and security for our users. The staff currently included six full-time employees whose duties include airport management, administration, operations and maintenance duties. The operations and maintenance staff conduct daily airfield inspections, airfield maintenance and repairs, and operational safety and emergency plan oversight. Additionally, the Airport also budgets limited funding for the Fire Department’s use for training and necessary equipment for providing as needed ARFF emergency response. With the enhanced requirement associated with maintaining an AOC, it is anticipated that the Airport budget would need to be increased to cover additional personnel training and potentially including increased staffing. It is anticipated that the Fire Department might need some additional funding for training, but it appears that they are currently meeting most of the training and recordkeeping requirements. It is anticipated that the fiscal impact for additional operational needs Date: December 6, 2019 Report No. 2019-190 might be less than $150,000 annually. Any necessary budget changes would be brought through the City’s budget process for City Council review and approval. There is a capital expense associated with the Fire Department for the acquisition of an ARFF truck, which is already funded, and delivery is anticipated in 2020. The acquisition of this truck ensures the Airports capability to meet the ARFF equipment requirements of Part 139. Additionally, a 3-minute response time is critical to maintaining an AOC, thus the ultimate development of an on-site fire station would assist in ensuring compliance. In the interim, the Fire Department can stage vehicles at the Airport for any charter operation requiring ARFF coverage once an AOC is obtained. Benefits of Maintaining a Part 139 Certificate One of the primary benefits of having an AOC are the capabilities to allow air carrier or “airline” operations. This alone may attract new tenants or operators just by having the ability to permit their aircraft and/or service. This also provides a service for the citizens of the City that does not currently existing, which can make air travel more convenient. Of further benefit is the overall enhanced safety for all aircraft operating at the Airport. The requirements associated with Part 139 are more stringent to airfield design, maintenance, and condition reporting. These factors send a message to pilots using the Airport that they can expect the same standardized operating environment as all certificated airports across the country. Of significant importance to corporate and air carrier aircraft operators is the availability of emergency services at the airport, which might be the deciding factor in choosing one of the many DFW Metroplex airports. The final benefit is the perception of the City of Denton’s commitment to airport safety and security to the pilot community, especially professional and corporate pilots and their associated businesses. Including certification status in marketing materials would also increase the awareness of the City’s commitment and could likely draw additional interest by aircraft owners and aviation related businesses. CONCLUSION: While it may be difficult to accommodate the needs of the UNT football program at the present, it is staff’s recommendation to continue to develop and submit an ACM to the FAA for the purposes of initially obtaining an AOC to support unscheduled large aircraft charters (AOC Class IV). Over the next several months, staff will be preparing a Draft ACM for initial coordination with the FAA. If the City Council desires to discuss this matter further prior to the formal ACM submittal, please let me or the City Manager’s Office know. FAA has indicated that it is expected to take approximately 12-16 months to complete the process and be considered for issuance of an AOC. FAA may choose to withhold the issuance of an AOC until a specific operator(s) has expressed the definite use of Denton Enterprise Airport. In the meantime, staff will continue to enhance processes, recordkeeping, training, etc. to be prepared to accept and maintain an AOC in the future. Date: December 6, 2019 Report No. 2019-190 STAFF CONTACT: Scott T. Gray, CM, CAE Airport Manager (940) 349-7744 Scott.Gray@cityofdenton.com REQUESTOR: Follow-up to previous Staff presentations to the City Council and Council Airport Committee. PARTICIPATING DEPARTMENTS: Airport, Finance, and Fire STAFF TIME TO COMPLETE REPORT: 3 hours