Muskegon County Airport Airport Advisory Committee Tuesday, November 1, :00 Noon Conference Room

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1 Muskegon County Airport Airport Advisory Committee Tuesday, November 1, :00 Noon Conference Room The Depot/Convention and Visitors Bureau Agenda 1. Call to Order 2. Approval of Minutes October 4, Informational Items a. Airport Manager s Report October Action Items 5. Old Business 6. New Business 7. Adjournment H:\Homan\AA\AAC\MA\ docx Airport Advisory Committee Members Terry Sabo (Commissioner) Term Exp. 12/31/16 Terry Boer (Business Park) Term Exp. 12/31/16 Robert Scolnik (Commissioner) Term Exp. 12/31/16 Anthony Chandler (Norton Shores) Term Exp. 12/31/16 Rachel Stewart (Chamber) Term Exp. 12/31/17 Peggy Foster (Private) Term Exp. 12/31/16 Rillastine Wilkins (Commissioner) Term by Virtue of Office Rich Houtteman (Private) Term Exp. 12/31/17 Robert Wygant (Private) Term Exp. 12/31/17 David Pickard (Public) Term Exp. 12/31/17 Vacant (Business Park) Muskegon County Airport 99 Sinclair Drive Muskegon, MI

2 Muskegon County Airport Airport Advisory Committee Conference Room OCTOBER 4, 2016 The Depot/CVB CALL TO ORDER The Airport Advisory Committee meeting was called to order at 12:00 pm. Present: Terry Boer, Anthony Chandler, Peggy Foster, David Pickard, Terry Sabo, Rillastine Wilkins Excused: Rich Houtteman, Bob Scolnik, Rachel Stewart, Robert Wygant Staff: Rita Bierman, Pam Homan, Bob Lukens, Jeff Tripp APPROVAL OF MINUTES A motion was made by Boer and supported by Pickard to approve the Minutes of September 6, 2016, as written. Motion Carried. INFORMATIONAL ITEMS The Airport Manager s Report for September was included in the packets distributed to the Committee prior to the meeting. Sun Country s casino charter flights for October and November are sold out. ACTION ITEMS None. OLD BUSINESS None. NEW BUSINESS None. ADJOURNMENT There being no further business to come before the Airport Advisory Committee, the meeting adjourned at 12:25 pm. Page 1 of 1

3 AIRPORT ADVISORY COMMITTEE AIRPORT MANAGER S REPORT November 1, Airline/Charter Operations Report September SkyWest Sun Country General Aviation Enp Dep Total Enp Dep Total Enp Dep Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL In September, SkyWest Airlines enplaned 1,530 passengers and deplaned 1,448 passengers for a total passenger count of 2,978. This equated to a passenger load factor of 56%. Calendar year to date, the total number of airline passengers is 26,849 of which 13,589 have been enplaned and 13,260 deplaned. SkyWest s Percentage of Scheduled Flights Flown was 98% (56 scheduled with 1 cancellation). Through September, the passenger numbers are 0% ahead of the same period in CY2015 (1530 enplanements/1468 deplanements = 2980 total passengers). The September Sun Country charter flight to Laughlin, NV enplaned/deplaned 155 passengers (310 total) while General Aviation charter flights enplaned 71 and deplaned 55 (126 total). 2. Air Service & Charter Programs A. Air Service Consultant The Air Service Consulting contract with Mead & Hunt was executed October 20. The first task to be completed is the development of the True Market Estimate (TME), which will be shared with airlines and community groups, and is the foundation information for air service forecasts and pro formas. The TME will quantify by destination the number of air travelers in the market, including those air travelers that drive to an airport other than MKG to originate the air travel portion of their trip. Mead & Hunt will complete an analysis of the airport's primary catchment area and reported origin and destination data for the most recent 12 months available. The output will provide an estimate of the top 50 domestic true markets and the top 15 to 25 international true markets including passenger retention by destination; diverted origin and destination passengers; and the total estimated true market for all destinations. Mead & Hunt will provide MKG a draft of the true market estimate within 60 days of the date of the signed contract. The second task is the scheduling of Airline Headquarters Meetings. Mead & Hunt is working to secure meeting dates and will provide analysis, preparation, presentation, and consulting services for meeting with SkyWest Airlines and United Airlines. B. United Airlines / SkyWest Airlines The Airport is scheduling trips to Chicago to meet with United Airlines (TBD) and St. George, UT to meet with SkyWest Airlines (November tentative) scheduling and route planning staff. C. Casino Flights i. Laughlin, NV - Sun Country Airlines. The October flight sold out. Page 1

4 3. Airport Capital Improvement Projects A. Runway/Taxiway crack sealing and restriping. The project is complete. B. FAA Project Upgrade Runway 24 MALSR and LOC The FAA is continuing its project to upgrade the instrument landing system (ILS) supporting Runway 24. The project had a 75-calendar day schedule with a completion date in early October; however, this project is behind schedule. 4. Economic Development A. Request to sell Airport Land to Norton Shores The Airport is continuing to move forward with the process to sell approximately acres of airport property located at 497 Porter Road (between Porter Road and Sternberg Road). The Airport has modified our initial submittal request to the State and FAA based upon comments received. B. Aerovision taxilane project Aerovision International owns property at 509 E. Airport Road in addition to their main offices at 620 E. Ellis Road. The County completed negotiations with Aerovision in 2013 & 2014 for a through-the-fence agreement to allow access to the airport from an outside the fence business, and the design of the taxilane (attachment 1). The project was placed on hold prior to construction. In September, Aerovision contacted the Airport to discuss re-starting this project. C. Airport Business Park i. Commercial Real Estate Broker. The County received five (5) proposals for Commercial Real Estate Broker services to represent the County in marketing and negotiating of County owned properties, including Business Park North and the Airport Business Park. The County is recommending award of a 1-year contract, with two 1-year options, to Jones Lang LaSalle (JLL) on November 27. JLL has successfully completed dozens of transactions in the local market including a deal at the Muskegon Airport Business Park for Johnson Tech. ii. Lot 10 Sale. The County approved the sale of Lot 10 (1.88 acres) for $56,400 to Inter Dyne Systems on October 25 (attachment 2). Inter Dyne Systems, Inc., 676 Ellis Road (Lot 9), produces stainless steel laboratory pegboards and glassware drying racks, narcotic security storage cabinets, stainless steel countertops and stainless steel shelving systems for the research laboratory and health care industries. 6. Airport Public Relations, Marketing & Advertising A. Public Relations B. Marketing & Advertising i. Airport website update. The development process is underway with an anticipated launch date in November. ii. Marketing & Advertising Project(s). The Airport Manager and County Economic Development Coordinator will be meeting with Baker College to discuss potential student projects to assist with airport marketing and advertising efforts. 7. Airport Administration, Operations and Maintenance Programs A. Airport Lease Policy. Attached for review and comment is a draft Airport Lease Policy (attachment 3). As an Airport Sponsor and recipient of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grants, the County is obligated to operate the Airport for the use and benefit of the public and to make it available to all types, Page 2

5 kinds, and classes of aeronautical activities on fair and reasonable terms and conditions without unjust discrimination. Given these obligations, this policy will establish a standardized system and process for leasing property and constructing improvements at the Airport. The Policy will encourage the establishment of businesses offering general aviation services to the public at the Airport based on the following principles: Preservation of the County s investment in the Airport and its resources; Facilitation of orderly and equitable management of the Airport; Ensure the provision of high-quality services and consistent quality of facilities at the Airport; Providing equitable and uniform treatment of all Operators, Lessees, and Users; Ensure compliance with applicable laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application and acceptance of Federal Funds; Enable conformity with the approved Airport Master Plan, Strategic Plans, and Airport Layout Plan; Make the Airport available for public use on reasonable terms without undue discrimination; Assist in maintaining a fee and rental structure with the goal of financial self-sustainability to the greatest extent possible for the Airport; and Allow for economic development and job creation. The Airport would like to place this document out for 60-day public review and comment starting in January and take to the Board in either March or April. B. Irregular Operations Plan (IROP). Airport staff member Mike Austgen attended an Irregular Operations Plan workshop in Detroit on October 22. This workshop provided an opportunity to review contingency plans with other airports in the event of unscheduled arrivals of one or more air carrier aircraft, handling an unscheduled international air carrier flight, or an aircraft diversion due to a pandemic event. C. Terminal Heating System. The Airport has replaced both hot water heaters in the terminal building at a cost of $11,300. These units provide both heat and hot water for the facility; both units were more than 22 years old and in need of replacement. 8. FY2017 Airport Operating & Capital Budget The airport s fiscal year 2016/17 operating budget and capital budget was approved at the September 27 Board meeting (attachment 4). Staff will answer questions the committee may have at the November meeting. If possible, please let staff know of any specific questions you may wish to ask about or have expanded upon at the meeting. This will allow us sufficient time to better prepare to address your questions. 9. INFORMATIONAL ITEMS A. Airports Ask FAA To Rescind Draft Proposal On PFCs The American Association of Airport Executives (AAAE) and Airports Council International North America (ACI-NA) on October 21 asked FAA to rescind a draft proposal that could increase the regulatory burden on airports levying Passenger Facility Charges (PFCs), as well as expand the FAA s involvement in the PFC program. Muskegon Airport charges the maximum $4.50 PFC allowed under the program. The PFC is applied to the county s debt service for construction of the Airport Terminal Building. The associations requested FAA provide airports with an opportunity to discuss concerns and recommend changes in discussions with FAA officials. FAA s proposal is a 212-page document that could dictate how it administers the PFC program for the next 15 years. The FAA contends the PFC overhaul is necessary, in part, to address PFC-related changes, which have been enacted into law in recent years. Page 3

6 Airport executives and consultants who have reviewed FAA s exceptionally long list of changes are concerned the agency s massive document goes well beyond the limited number of new congressional mandates that have been adopted. The argument is that the FAA s proposed update would allow it to impose modifications that ultimately could increase, not reduce, the regulatory burden on airports. We strongly believe that the draft order would increase the regulatory burden on airports, unnecessarily expand FAA s involvement with an inherently local program, and slow the PFC application and approval process at a time when airports are calling for an expedited review process and less federal intervention in managing local PFC revenues, AAAE and ACI-NA said. B. State Legislation Regulating Transportation Network Companies (TNC s) The Airport received a legislative update from the Michigan Association of Airport Executives (MAAE) on October 17. The State Senate is working on legislation regulating Transportation Network Companies ( TNCs ) (i.e. Uber, Lyft, etc.). In the original drafts, airports would be able to regulate TNCs on airport property. On Monday, October 17, Draft 3 (attachment 5) was issued and did not contain airport language as originally proposed (Section 15 on page 15 is the key provision). Additionally, airports are concerned the language in Draft 3 may actually make matters difficult for airports, as airports may not be able to regulate the entities currently allowed to regulate. MAAE is requesting members to call members of the regulatory reform committee to ask them to support language that will allow all airports to regulate TNC companies in a reasonable manner. Key talking points are: Airports generally support the TNC business model and want TNCs to operate at airports Without an airport exemption Michigan may be jeopardizing AIP federal grant dollars ($83 million in FY2014) Airports are required to be self-sustaining as possible by charging reasonable access fees to commercial operators Conditions for operating at an airport must not be unjustly discriminatory against different operators Airports have a unique need to monitor and regulate traffic on property due to homeland security issues and unique congestion issues that cities do not face 9. Action Items A. The Airport is planning to bring the following items to the Transportation Board and Board of Commissioners later this month: i. RSB Aviation Lease Assignment Approval of a lease assignment from RSB Aviation to Tango Bravo, LLC for the hangar located at 174 W. Sinclair Drive. ii. Apron Rehabilitation (Phase 2) Change Order #4 to address liquidated damages due to delays in completing the project. iii. Crack Sealing & Remarking Project Change Order #1 to address final as-built quantities adjustments and addressing a Letter of Correction marking item from the FAA. B. Discussion to reschedule the January 3 meeting to either January 10 or 17 due to the holiday season. Page 4

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9 MUSKEGON COUNTY AIRPORT MUSKEGON, MICHIGAN A POLICY TO GOVERN AGREEMENTS INVOLVING THE USE OR DISPOSITION OF AIRPORT PROPERTY FOR AERONAUTICAL ACTIVITIES ADOPTED

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11 MUSKEGON COUNTY, MICHIGAN A POLICY TO GOVERN AGREEMENTS INVOLVING THE USE OR DISPOSITION OF AIRPORT PROPERTY FOR AERONAUTICAL ACTIVITIES AT MUSKEGON COUNTY AIRPORT Table of Contents Section 1 General Statement of Policy...1 Section 2 Definitions...1 Section 3 Exclusive Rights...3 Section 4 Requests for Lease/Use Agreements...3 Section 5 Application Process...4 Section 6 Action on Application...4 Section 7 Standards for Leasing/Use of Airport Property/Premises...6 Section 8 Written Agreement...12 Section 9 FAA Required Lease Provisions...12 Section 10 Rentals, Rates, Fees, and Charges...14 Section 11 Construction of Leasehold Improvements...15

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13 Section 1 - General Statement of Policy As an Airport Sponsor and recipient of Federal Aviation Administration (FAA) Airport Improvement Program (AIP) grants, the County of Muskegon, Michigan (hereinafter, County ) is obligated to operate the Muskegon County Airport (hereinafter, Airport or MKG ) for the use and benefit of the public and to make it available to all types, kinds, and classes of aeronautical activities on fair and reasonable terms and conditions without unjust discrimination. Given these obligations, the County hereby establishes this policy to set forth a standardized system and process for leasing property and constructing improvements at the Airport. In furtherance of this objective, it shall be the policy of the County to encourage the establishment of businesses offering general aviation services to the public at the Airport based on the following principles: Preservation of the County s investment in the Airport and its resources; Facilitation of orderly and equitable management of the Airport; Ensure the provision of high-quality services and consistent quality of facilities at the Airport; Providing equitable and uniform treatment of all Operators, Lessees, and Users; Ensure compliance with applicable laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application and acceptance of Federal Funds; Enable conformity with the approved Airport Master Plan, Strategic Plans, and Airport Layout Plan; Make the Airport available for public use on reasonable terms without undue discrimination; Assist in maintaining a fee and rental structure with the goal of financial self-sustainability to the greatest extent possible for the Airport; and Allow for economic development and job creation. Section 2 - Definitions For purposes of this Leasing Policy, the following definitions shall apply: Aeronautical Services/Activities: means any activity or service conducted at the Airport 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. The following services/activities commonly conducted on airports are Aeronautical Activities within this definition: charter operations, pilot training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial advertising, surveying, air- carrier operations, aircraft sales and services, sale of aviation petroleum products, repair and maintenance of aircraft, sale of aircraft parts, and any other activities that, because of their direct relationship to the operation of an aircraft, can appropriately be regarded as an "Aeronautical Activity." Agreement: means the written agreement between the County and an Operator or Lessee specifying the terms and conditions under which the Operator may conduct commercial aviation activities and Lessee may occupy Airport property. Such Agreement will recite the terms and conditions under which the activity will be conducted at the Airport, including but not limited to: rents, fees, and charges to be paid; and the rights and obligations of the respective parties. Page - 5 -

14 Airport: means Muskegon County Airport and all of the area, buildings, facilities, and improvements within the exterior boundaries of the Airport as it now exists, or as it may hereafter be extended or enlarged. Airport Manager: means the individual employed and authorized by the County to be the chief administrative officer of the Airport, or the person authorized by the Airport Manager to act for or on behalf of the Airport Manager, with respect to any particular matter. Airport Leasing Policy: means the Policy to Govern Agreements Involving the Use or Disposal of Airport Property for Aeronautical Activities as established and amended from time to time by the County, to govern the safe, orderly, and efficient use of Airport property. Airport Layout Plan: means the FAA approved and County adopted drawing, as may be amended from time to time, which reflects an agreement between the FAA and Airport depicting the physical layout of the Airport and identifying the location and configuration of current and proposed runways, taxiways, buildings, roadways, utilities, NAVAIDs, etc. and proposed allocation of Airport land and/or improvements to specific uses and/or development. Applicant: means a Person submitting an application to the County to Lease Airport property. City: means the City of Norton Shores unless otherwise specified. County: means Muskegon County, owner and operator of the Airport, acting by or through the Muskegon County Board of Commissioners or any duly authorized employee, agent or instrumentality of the Muskegon County, Michigan. County Board of Commissioners: means the legislative body that governs the County of Muskegon, Michigan. Commercial Aeronautical Activity: means an Aeronautical Activity for commercial purposes as defined in the Airport Minimum Standards. FAA: means Federal Aviation Administration. General Aviation: means all phases of aviation other than military aviation and scheduled or nonscheduled commercial air carrier operations. Lease: means a contract between the County and any Person wherein the County grants the use or occupancy of Airport property in conformance with certain leasehold interests for a specified period of time in exchange for specified rent. Lessee: means any Person obtaining a lease from the County to occupy space and hold certain leasehold interests at the Airport. Minimum Standards: means the Airport Minimum Standards for Commercial Aeronautical Service Providers at the Muskegon County Airport as adopted by the County, amended from time to time. Page - 6 -

15 Operator: means either a Fixed Base Operator or a Specialized Aviation Service Operator when performing a Commercial Aeronautical Activity. Person: means and includes any individual, corporation, partnership, association, company, business, trust, joint venture, or other legal entity. Rules and Regulations: means the policies, procedures, and regulations, which are established and amended from time to time by the County, to govern the safe, orderly, and efficient use of the Airport. Shall: the word shall is always mandatory and not merely directory. State: means the State of Michigan. Sublease: means a written agreement, approved by the County, stating the terms and conditions under which a third party leases space from a Lessee for the purpose of providing aeronautical services at the Airport. Section 3 - Exclusive Rights A. Federal law forbids the granting of an exclusive right to provide aeronautical services at an airport on which federal funds have been expended. An exclusive right is a power, privilege or other right excluding or debarring another from enjoying or exercising a like power, privilege or right. The County will not grant any such special privilege or monopoly in the use of public use Airport facilities. B. The presence on the Airport of only one Lessee engaged in a particular aeronautical service(s) will not, in and of itself, indicate that an exclusive right has been granted; however, it is the policy of this County not to enter into or promote any understanding, commitment, or express agreement to exclude other reasonably qualified Lessees. Accordingly, those who desire to enter into a Lease with the County to engage in an aeronautical activity should neither expect nor request the County to exclude others who desire to engage in the same or similar activities. The opportunity to engage in an aeronautical activity shall be made available to those meeting reasonable qualifications and standards relevant to such activity and as space may be available at the Airport for such an activity. Section 4 Requests for Lease/Use Agreements A. Written Application Required. Any Person desiring to enter into a lease with the County for permission to occupy Airport property shall make written application to the County for such permission. B. Applicant Must Demonstrate Qualifications. Application materials shall consist of all the information specified in this Leasing Policy, the Airport Minimum Standards, if applicable, and all documentation deemed necessary by the County for a full and complete analysis of the Applicant s qualifications and the benefit that will accrue to the aviation public from the Applicant s proposed use of Airport property. Page - 7 -

16 Section 5 Lease Proposal Process Each proposal to lease Airport Property shall be in writing and in sufficient detail to discern the complete qualifications of the Applicant and shall include, as a minimum, the following: A. The name, address, electronic mail address, and telephone of the Applicant. B. The amount, size, and location of the land and/or facilities to be leased. C. Descriptions and cost estimates of any proposed capital improvements. D. The types and amounts of insurance coverage to be maintained for the proposed use of Airport Property. The type and limit of insurance required shall be established by the County and updated from time to time as needed. E. A current financial statement prepared by the Chief Financial Officer of the Applicant and certified by an independent certified public accountant. The County shall consider financial statements in evaluating the Applicant's financial ability to construct facilities, occupy Airport property, and enter into a Lease of Airport property. F. For construction of proposed leasehold improvements, the County may require evidence of the Applicant s financial ability to complete the improvements in one of the following forms: 1. A performance bond in the amount equal to the cost for constructing the proposed improvements; 2. An irrevocable letter of credit guaranteeing funds to complete the project; 3. An escrow agreement administered by a title and escrow company; or 4. A trust administered by a commercial bank. G. If an Applicant is seeking to engage Commercial Aeronautical Activity, the entity shall also provide all application information and materials required by the Airport Minimum Standards. H. The Applicant shall agree to provide any additional information and material deemed necessary or requested by the County. I. The proposal shall be signed and submitted by the official representative of the entity of the business, if a sole proprietorship; every partner if a partnership; every member if a Limited Liability Company, and the President or CEO if a corporation. Section 6 - Action upon a proposal to lease Airport property When the Airport Manager deems the proposal to lease airport property complete, as required by this Leasing Policy, the Airport Manager will review the proposal against the criteria outlined in this section. If the Airport Manager finds the proposal meets these criteria, the Airport will recommend entering into a lease with the proposed tenant to the County Board, in accordance with the proposal and this leasing Page - 8 -

17 policy. If it is determined, the criteria have not been met, the Airport Manager will deny the proposal, temporarily until the criteria can be met or finally, if it is determined the criteria cannot ever be met. The Criteria: A. The proposed use meets the requirements of the Airport Master Plan, the Airport Layout Plan, the Airport Strategic Plan, if in place, the County Zoning ordinance and map, and this Airport Leasing Policy. C. The proposed use does not create a safety hazard on the Airport and the construction of the airport improvements associated with the proposed use does not create a safety hazard. D. The granting of the application will not require the County to spend funds, supply labor, or materials in connection with the proposed activity and the activity is not expected to result in a financial loss to the County. E. Suitable space is available to accommodate the entire activity proposed or suitable land is available to construct the buildings and facilities necessary to accommodate the entire activity outlined in the proposal. F. The proposed improvements can be constructed and the use instigated and operated without unduly interfering with other airport operations or causing undue congestion on the airport. G. The applicant has not, either intentionally or unintentionally, misrepresented or omitted any pertinent information in the application or in supporting documents. H. The applicant does not have a record of violating the Rules and Regulations of the Airport or of any other airport, FAA regulations, or any other federal, State, County or local statutes, laws, rules, or regulations, which would render the person/entity unsuitable as an airport tenant. I. The applicant has not defaulted in the performance of another lease or any other agreement with the County or any other airport(s). J. The applicant, in the opinion of the County, exhibits adequate financial responsibility to undertake the project based upon the financial information provided. K. The applicant can provide acceptable surety in the amount required by the County for that Agreement. L. The Airport Manager finds that the proposed activity or development is in the best interest of the County, the Airport, or the public. Section 7 - Standards for Leasing/Use of Airport Property and Premises A. Space Limited to Demonstrated Need. A single aeronautical activity, although meeting all reasonable standards and qualifications, shall be limited to a lease of such space as is needed for Page - 9 -

18 that activity. When an Applicant seeks to lease property from the County, he/she must provide evidence of demonstrated need for the Airport property in question. Where occupancy of existing Airport facilities is involved, demonstrated need shall mean the ability of the Lessee to occupy premises leased from the County as of the effective date of the Lease. Where construction of facilities, or alterations to an existing facility, are involved, demonstrated need shall mean the ability to obtain a certificate of occupancy from the City of Norton Shores for the proposed facility within six (6) months following receipt of possession of the leased property unless the City determines a longer period is warranted due to the scope of construction. B. Requests for Additional Space. If the need for additional space becomes apparent at a later date, such space, as well as any new areas developed for the service and support of aeronautical activities, will be made available to all qualified proponents or bidders, including the incumbent. The County will not award or grant, in advance, any options or preferences (including the right of first refusal) on future sites to an incumbent Lessee. If an existing Lessee needs additional Airport space to accommodate increased demand for its existing services or to expand an existing service, that Lessee shall notify the County, in writing, of the need for additional space. The written notice shall be sufficiently detailed to document a demonstrated need for the additional space requested. The County may grant the Lessee the additional space requested (to the extent the Lessee has a demonstrated need therefore) or the County, if prior to the receipt of the Lessee s notice it has received an application from another qualified Applicant demonstrating a need for such space, may negotiate with one or more Persons who have expressed an interest in the space in question to determine which alternative would be most advantageous to the County. In any case, the County will not allow an existing Lessee to land bank airport property. If the need for additional space is for or in connection with a new proposed aeronautical activity, one not authorized by the Lessee s existing Lease, the request for additional space shall be treated by the County as one for a new Lease. C. Term. The County determines the length of term for a Lease, Agreement, or Permit based on a variety of factors including: Whether the Lessee is seeking to obtain space in an existing building or whether a long-term land lease is being sought for construction of improvements to Airport property; The designation of the facility or proposed property on the ALP; The Lessee s proposed use of the property; and The Lessee s proposed amount of capital investment in facilities. While subject to specific negotiations between the County and each Lessee, the County generally offers Lease, Agreement, or Permit terms as follows: 1. An initial lease of existing facilities or a portion of an existing facility requiring no additional capital investment: 5 years or less. Page

19 2. An initial lease of property on which to construct a new private hangar: 20 years with one fiveyear options to extend the lease for a total initial term of 25 years. 3. An initial lease of property on which to construct facilities to support Aeronautical Activities: 25 years with two five-year options to extend for a total initial term of 35 years. 4. An initial lease of property on which to construct facilities to support Aeronautical Activities (again, a commercial operation) which require a significant investment in capital, which could involve the development of a larger tract of airport property, for up to a term of 50 years. Some of the criteria which the County might deem to fall into this category would include, but not necessarily be limited to: a. Significant initial capital investment in leasehold improvements (greater than $1,000,000 in calendar year construction dollars); b. Significant additional capital investment in current leasehold improvements (greater than $1,000,000 in calendar year construction dollars); c. Services provided to other Airport tenants and users; d. Significant job creation; e. Public infrastructure extension which will benefit other parcels (i.e., roads, water, sewer); and f. Potential to attract other new aviation businesses. 5. At the end of an initial term, described above, or at the end of any prior lease on the airport, the initial term, and all extensions of which, have not exceeded 45 years, the County shall extend the term of the lease of an existing facility for periods of 5 additional years each with no additional investment of capital, up to a total aggregated period of 50 years, upon the following conditions: a. Leased premises are not required for other Airport uses according to the airport layout plan; b. The lease is not then in default; c. The language of the lease is updated to the current airport lease language; d. The rental to be paid during the extended term is updated to the fair market value of the lease premises, not including the tenant s improvements thereon, with the additions to the rent over the term that are in current use in similar County airport leases over the extended term. 6. At the end of an initial term, described above, or of any prior lease on the airport, the initial term, when all extensions of the said lease have not exceeded 45 years, the County shall extend the term of a lease of an existing facility for a period of longer than 5 additional years up to a total term of 50 years, upon the conditions listed in subparagraph 5 above, plus the following: a. Additional investment in the facilities (reinvestment will be based on the value of improvements, not to exceed 100% of the original value of the facility); Page

20 b. Upon inspection, the facilities are found to be in condition to last for the additional negotiated term. The parties will provide to the County a Facility Condition Assessment Report, prepared by an independent, qualified contractor, approved by the County in writing, attesting to the condition of the leasehold improvements. Should said report indicate the presence of improper maintenance or conditions of the improvements that render them unsafe for occupancy, the County will defer action on the requested transaction until the deficiencies have been corrected. 7. In order to obtain an extension of the term of a lease, the Lessee must make application therefor to the Airport Manager at least one hundred eighty (180) days prior to the end of the current lease term. D. Sale of Leasehold Improvements on Airport property. During the unexpired term of any lease upon the airport, it is the policy of the County to not allow the purchaser of said improvements to assume the existing lease of the seller. Rather, on the conditions set forth in this section, the County will enter into a new lease with the purchaser of said improvements. Those conditions are as follows: 1. The new lease will contain the current language of leases entered into between the County and airport tenants in accordance with the provisions of this leasing policy; 2. The parties will provide to the County a Facility Condition Assessment Report, prepared by an independent, qualified contractor, approved by the County in writing, attesting to the condition of the leasehold improvements. Should the report indicate the presence of improper maintenance or conditions of the improvements that render them unsafe for occupancy, the County will defer action on the requested transaction until all deficiencies are corrected. 3. The parties will provide to the County a Phase I Environmental Report of the leased premises prepared by an independent, qualified contractor, approved by the County in writing. Should the report indicate the presence of environmental concerns, the County will defer action on the requested transaction until all deficiencies are corrected. 4. The parties will pay to the County an administrative fee equal to 3% of the sale price of the improvements. 5. The term of the new lease for the purchaser of the improvements will be no less than the remaining term of the seller s lease and the rent shall remain the rent specified in the seller s lease. If the purchaser wishes to extend the term for an additional 5 years beyond the seller s remaining term, so long as that does not make the total term of said lease 50 years or more, the rental for the term of the said lease shall be amended to the current fair market value of the lease premises. If the purchaser wishes to extend the seller s remaining term for longer than the 5 additional years, up to a total of 50 years, in addition to meeting the requirement of the additional provisions of subsection 6. under the subsection on Term hereof. 6. After the County and the purchaser of the improvements have entered into the new lease described in this paragraph, the former lessee, the seller of the improvements, shall have no further liability to the County under the superseded lease, or otherwise, which arise out of the lease transaction between the former lessee and the County. E. Ownership of Improvements at the termination of the lease. Page

21 1. Upon termination of the lease of airport property on which improvements have been constructed by the tenant or a prior tenant, the tenant may remove said improvements, upon giving notice to the Airport Manager, at least one hundred eighty (180) days prior to the end of the term, of the tenant s election to remove said improvements. The removal shall be completed at or prior to the end of the lease term. 2. If the tenant does not elect to remove the improvements and provide the required one hundred (180) day notice, the County shall decide if it wishes to require the tenant to remove said improvements. The County may request a real estate appraisal of the leasehold improvements prepared by an independent, qualified contractor, approved by the County in writing detailing the current market value and useful life of said improvements. In addition, the tenant must provide a satisfactory environmental report. The Airport Manager shall, at least ninety (90) days prior to the end of the said term, notify the tenant, in writing, of the election made by the County with respect to the improvements. If the County elects to keep the improvements, the notice by the Airport Manager to the tenant of the County s election to retain the improvements shall constitute the only conveyance needed to transfer any interest that the tenant might have in said improvements to the County. The tenant, having failed to notify the County by the stated date of their election to retain said improvements, constitutes an election by the tenant not to retain the improvements, and thereby the tenant will be deemed to have abandoned said improvements. 3. If the County notifies the tenant to remove the improvements, the tenant will then have until the end of the lease term to remove the said improvements, with the cost to be borne by the tenant. If the process has not been completed by the end of the lease term, the tenant shall also be liable to the County of additional rent at the lease rate until the improvements have been removed and the site left free of debris from the said removal. If the tenant fails to complete the removal of the improvements within thirty (30) days after the end of the term, the County may cause the improvements to be removed by a contractor, and bill the tenant for the cost, for which the tenant shall be liable as additional damages under the terms of the lease document. F. Leases for Non-Aeronautical Activities. The County will not approve any proposed lease of aeronautical property for non-aviation activities for longer than a brief, interim period of time generally, five or fewer years, and provided the activity does not violate FAA grant assurances. Such leases are also subject to FAA approval and the proposed Lessee obtaining all necessary zoning and other approvals from the County and/or City. G. Leases for Private Aeronautical Uses. The County is required to operate the Airport for the maximum use and benefit of the public, and must retain the ability to make reasonable provision for essential support services for those who use the Airport; nevertheless, some private aeronautical uses may be beneficial to the County; for instance, a private flying club might be a desirable and compatible Operator. Proposed leases for private aeronautical uses will be evaluated on a case by case basis, taking into account the strategic business plan of the Airport, the benefits which may be derived from the proposed lease, the potential costs of the proposed lease to the County, the availability of suitable space, the potential for conflict or interference with the public uses of the Airport, and any other factors the County deems relevant. Page

22 H. Adherence to Airport Layout Plan (ALP) Required. The ALP depicts County-owned property on the Airport to be utilized for aeronautical activities and identifies existing facilities and plans for future development. The ALP reflects the existing and proposed allocation of areas of the Airport to specific operations and support functional usage. No use, occupancy, construction, modification, or improvement that is inconsistent with the Airport s FAA-approved ALP shall be allowed. I. Development of Vacant Airport Property. When a Lessee or Operator desires to construct facilities at the Airport, limited availability of vacant, appropriate space may restrict the County s ability to grant permission for such development. There are only a limited number of available sites on which to build facilities to accommodate aeronautical activities at the Airport. Any application for permission to develop these properties as indicated shall include, in addition to all other required materials, a site plan depicting the nature and location of the proposed development. J. No Liens or Encumbrances to Airport Property. The subordination of Airport property by mortgage, easement, or other encumbrance will normally be considered as a transaction that would deprive the County of the rights and powers necessary to perform its covenants in its agreements with the federal government and under the bonds that have been issued, from time to time, to finance Airport operations. Because of this, the County shall not grant proposed developments that would require such encumbrances. The County will always require a Lessee or Operator developing Airport property to indemnify and hold the County harmless from any mechanics or other liens which might be filed against Airport property as a result of the development. K. Financing Airport Development. The County is under no obligation to provide financing, or to make any improvements to Airport property to facilitate a development proposed by an existing or prospective Lessee. If such a Lessee cannot demonstrate the financial means to implement and pay for such development that may be an indication that the proposed development would not be in the best interests of the County or the public using the Airport. If a perspective Lessee has demonstrated the requisite financial ability, the County may choose to pursue any supplemental federal, state, or County funds to contribute to the leasehold improvements, but only if in doing so there would be no diversion of funds away from capital improvements or the Airport capital budget program planned by the County. L. Airport Operated for Benefit of the Public. Through its Leases, and by other means, the County will ensure that the Airport is operated for the use and benefit of the public and is made available to all types, kinds, and classes of aeronautical activities with priority given to uses that further the County s goals and the Airport s strategic business plans. M. General Rights and Privileges Granted. Airport Leases are designed to accomplish one or more of three basic rights or privileges: 1) the right for a Person to use the landing area and other public Airport facilities in common with others so authorized; 2) the right to occupy as an Operator, and to use exclusively, certain designated premises; and/or 3) the commercial privilege or the franchise right to offer goods and services to the public who use the Airport. The County will not enter any Lease without written receipt of adequate consideration for the rights granted therein. Page

23 N. Control over Operations. Any Lease granting the right to serve the public on the premises of the Airport shall be subject to terms and conditions reserving to the County sufficient control over operations to ensure that the Lessee will treat patrons fairly. The Lessee must agree to make available its services and facilities on fair and reasonable terms, and without discrimination. O. Control over Aeronautical Activity and Development. The County will not enter into a Lease requiring it to divest itself of the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, or the right to prevent any Lessee from erecting, or permitting to be erected, any building or other structures which might limit the usefulness of the Airport or constitute a hazard to aircraft. P. The County will not enter into a Lease requiring it to divest itself of, or limit its right to develop or improve the Airport as it sees fit, regardless of the desires or views of any Lessee and without interference or hindrance from such a party. Q. Minimum Standards. The Minimum Standards set forth the qualifications and conduct which a Lessee desiring to conduct certain aeronautical activities at the Airport must meet. They establish a basis for practical negotiations between the County and potential Lessees; however, prospective Lessees should be aware that the County, if presented with a choice between multiple potential Lessees for a single space or facility, will give preference to Lessees who can offer the County and the public the highest standard of quality and service which may well exceed the Minimum Standards for a proposed activity. Existing and prospective Lessees shall understand that the County may increase its Minimum Standards from time to time, in order to ensure a higher quality of service to the public. Only in the rare circumstance, where the aviation community at the Airport has encountered difficulty in attracting a competent service entity, shall the County consider waiving a Minimum Standard to allow a period of initial development. In all other circumstances, it is the policy of the County not to enter into agreements with Operators who cannot meet the applicable Minimum Standards. R. Off-Premises Access. The County will not enter into Leases that grant access to public ramp, taxiway, and landing areas by aircraft normally stored and serviced on land adjacent to, but not a part of the Airport premises (i.e. Through the Fence access). NOTE This section needs update. S. Waivers of Immunity. The County will not enter into L eases that require it to waive any sovereign, governmental, or other immunity to which it may be entitled, or that would require it to submit to the laws of any state other than those of the State of Michigan. T. Indemnification. Every Lessee desiring to conduct aeronautical activity at the Airport shall agree to indemnify and hold the County, its officers, officials, agents, representatives, and employees from and against any and all injuries, damage or harm, or any nature whatsoever, which may result from its use or occupancy of Airport property and its conduct of aeronautical activities. Section 8 - Written Agreement All Persons, prior to the commencement of construction of leasehold improvements or operation, of an Aeronautical Activity as defined herein, shall enter into a Lease with the County setting forth the terms and conditions under which the Person shall occupy and use Airport property. Leases entered into by Page

24 the County are designed to protect the public interest and may contain more restrictive clauses than private sector leases, are to be in a form approved by the County s legal counsel and shall at a minimum conform to local/regional standards of tenant responsibility and liability. Each Lease shall include all provisions required by law and obligations placed upon the County by all federal and State agencies including, but not limited to, compliance with all federal, state, county, and local laws and regulations pertaining to the use, storage, and disposal of hazardous materials and storm water pollution prevention regulations. Other Lease provisions shall include, but are not necessarily limited to, the following: A. Description of leasehold B. Term of lease C. All fees and charges associated with occupying and operating on the premises D. Payment procedures relating to all fees and charges E. Approved activities F. Prohibited activities G. Insurance Requirements H. Subleasing provisions I. Fire Prevention J. Environmental Liability K. County entry onto premises L. Compliance with laws M. Airport Security Program N. Default/Termination O. Transfer of Airport ownership P. Bankruptcy Q. Ingress and Egress to Property R. Sale of Improvements S. Lease Renewal Options Lease, Agreement, and Permit language is updated from time to time to reflect changes in FAA regulations and real estate law as well as to meet changing economic conditions and other risks associated with land ownership. Section 9 - FAA Required Lease Provisions In addition to the minimum terms and conditions listed in Section 9, each Lease shall contain the following provisions regarding subordination, emergency leasing to the United States, and nondiscrimination. The language for these provisions is as follows: A. Lease Subordinate to Agreement between County and the United States: This lease shall be subordinate to the provisions of any existing agreement between the County and the United States, relative to the operation or maintenance of the Airport, the execution of which has been required as a condition precedent to the expenditure of federal funds for the development of the Airport. Page

25 B. Emergency Lease to United States: During times of war or national emergency, the County shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and if any such lease is executed, the provisions of this instrument insofar as they are inconsistent with the provisions of the lease to the Government shall be suspended. All facilities of the Airport developed with federal financial assistance and all facilities usable for landing and takeoff of aircraft will be available to the United States for use by Government aircraft, (or their contractor) in common with other aircraft at all times without charge, except, if the use by Government aircraft is substantial, a charge may be made for a reasonable share, proportional to such use, of the cost for operating and maintaining the facilities used. C. Non-Discrimination: The Lessee shall furnish all services authorized or licensed on a fair, equal, and not unjustly discriminatory basis to all users and shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service, provided that it may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers, if permitted by law. The Lessee for itself, its personal representatives, successors in interest, and assignees hereby agrees that: 1. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. 2. In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. 3. That the premises are to be used in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulation may be amended. 4. That in the event of breach of any of the above non-discrimination covenants, the County shall have the right to terminate the lease and re-enter and repossess said land and the facilities thereon and hold the same as if said lease had never been made or issued. Section 10 Rentals, Rates, Fees, and Charges A. Financially Self-Sustaining. The County has an obligation to make the Airport as self- sustaining as possible under the circumstances existing at the Airport at any given point in time. Toward this end, the County, through its Agreements and by other means available to it shall endeavor to recover the cost of providing its facilities through rentals, fees, or other charges. All Agreements must provide for adequate consideration to be received by the County in compensation for the rights and privileges therein granted. It shall be the policy of the County to seek contractual terms Page

26 and conditions that, while fair and nondiscriminatory, provide the most advantageous returns to the County. B. No Unjustifiably Discriminatory Rates. Each Operator shall be subject to rates, fees, rentals and other charges (e.g., fuel flowage fees, hangar rentals, percentages of gross volume of business, etc.) as may be currently applicable to, or being received from others making the same or similar uses of the Airport, utilizing the same or similar facilities. Nevertheless, in respect to a contractual commitment from any Operator, the County may charge different rates to similar users of the Airport if such rates are nondiscriminatory in purpose. Differences in values of properties involved, and the extent of use made of common use facilities may be factors to be considered. Seldom will each Airport user have properties of the same value nor will their use and impact upon common facilities be the same. If one Operator is in what is considered a prime location, and another is in a less advantageous area, there could logically be a differential in the fees and charges, to reflect this advantage of location. This factor might also influence the rental value of the property. If one Operator rents office and/or hangar space and another builds its own facilities, this would provide justification for different rental and fee structures; these two operators would not be considered essentially similar as to rates and charges even though they offer the same services to the public. C. Competition May Determine Applicable Rates/Fees. In situations where particular contracts, leases or agreements are awarded as the result of competition among potential operators, said Agreements will be subject to the financial terms and conditions proposed by the operators in response to the competitive process and deemed most advantageous to the County. Agreements obtained through the process of competitive negotiation and bidding may offer returns to the County that are higher than those being received from existing Operators at a given point in time. D. Periodic Adjustment of Rates. Providing for adjustments to rental rates and Airport user fees (e.g., percentages of an Operator s gross revenues) facilitates parity of rates and charges between new and long-standing Operators, assists the Airport to remain as self-sustaining as possible under the circumstances existing at any given point in time. All Agreements with a term of five (5) years or more shall contain provisions subjecting the rental rates and user fees to be subject to periodic adjustment throughout the entire term of the Agreement. Adjustments shall occur at five-year intervals throughout the term(s) the Agreement remains in effect, at the discretion of the County. Under no circumstances will rental rates or user fees be adjusted to amounts less than the current fair market value at the time of the review and adjustment process conducted by the County. No single adjustment of a rental rate or user fee shall exceed one hundred percent (100%) of the current rental rate or fee in effect at the time of the review and adjustment process conducted by the County. (The term user fees, for the purpose of this Lease Policy, does not include landing fees or passenger facility charges). E. Pioneer Periods Disfavored. In the case of a new general aviation Operator, offering services not previously available to the public at this Airport, the County may choose to offer reduced rental rates or other inducements to obtain an Operator, recognizing that it may well be a non-profit venture during its pioneering period. In such circumstances, the incentive rate shall be offered only during a specific pioneer period, and shall be defined to end on a specified date. Future Operators coming on the Airport following the pioneer period will be expected to pay the comparable standard rates and charges based on then-current values, rates and charges, and the County shall not be obligated to offer subsequent Operators a pioneer period. Nor shall it Page

27 generally be appropriate to offer an established Operator the benefit of an additional period of reduced rates or other financial inducements, beyond the Operator s initial pioneer period. F. Diligent Bookkeeping Required. Income from an Operator s Airport operations must be fully accounted for, and adequate records must be kept to evidence amounts due to the County for the various rentals, fees, and charges applicable to the Operator s operations at the Airport. The County shall be entitled to have access to such records upon request. Section 11 Construction of Leasehold Improvements Through its leasing and development activities, the County seeks to promote consistent, attractive, and compatible high quality development at the Airport. In addition, it desires to encourage private sector investment in Airport facilities, develop and maintain aesthetic excellence and high standards of environmental protection. Finally, it desires to create standards of development that maintain the character of the Airport, and ensure all construction meets and exceeds all applicable safety standards and requirements. Each Lease, Agreement, or Permit issued by the County shall include the specific development requirements for the construction of leasehold improvements on the Airport; however, following are general provisions and policies applicable to each Airport Lease, Agreement, or Permit: A. No leasehold improvements shall be designed, planned, constructed, reconstructed, or remodeled without the prior written approval of the Airport Manager. B. Any structure or facility to be constructed or placed upon the Airport shall be constructed in a manner to conform to all safety and environmental regulations of the State of Michigan and the County of Muskegon, and shall be in compliance with County and/or City of Norton Shores current site development requirements, building codes, environmental codes, and fire regulations as well as FAA design standards. C. The FAA requires review and approval of Airport improvements. The County is required to submit Form 7460 to the FAA detailing specific requirements of each project. The Lessee shall submit all required information to the Airport Manager who shall in turn submit the information to the FAA. Submittal of this information shall be a prerequisite of the Airport Manager releasing final design approval. No construction shall commence without the written approval from FAA as per this Form. D. Responsibility for obtaining appropriate approvals from government authorities and complying with their various regulations, policies, and standards shall be that of the Lessee. E. Lessees shall obtain at their sole expense all permits required for their construction program and shall pay all taxes, permits, inspection fees, and licenses required for the construction and operation of their business. F. The design of any leasehold improvement is to be carried out under the direction of a registered architect or engineer. Construction drawings are to be certified by their respective professional disciplines architectural, structural, mechanical, electrical, and civil engineers. Page

28 G. In accordance with Section 8.K, the County may provide infrastructure for the proposed leasehold improvements. Absent county funding of such improvements, each Lessee shall be solely responsible for and incur all expenses for connection to all leasehold improvements and facility requirements including public roadways, aprons, taxiways, electrical power, communications, water, sewer, and natural gas. H. Lessees shall obtain the prior written approval from the County to modify, improve, add to, or delete facilities from their leased area. If any structure is erected, placed, or altered upon in any other manner than in accordance with plans and specifications approved by the County, such construction will be considered to have been undertaken without approval. This restriction is applicable to landscaping plans as well as architectural plans. I. Lessees shall suppress, at their own expense, and to the satisfaction of the FAA, all electromagnetic interference with radio guidance, safety devices or with any electric or electronic equipment or installations on or associated with the Airport. J. The County assumes no responsibility with regard to the ability of the Lessee to complete construction or otherwise meet the Terms and Conditions of its Lease, Agreement, or Permit nor does it assume any responsibility for an error, fault, or omission in the plans and specifications that have been approved. The County reserves the right to serve notice that action must be taken to remedy any improper situations. K. Noise, dust, odors, storm water detention, water quality, and smoke generation are of particular concern in the design and operation of any facility on the Airport. Therefore, the design and construction of all facilities shall comply with all federal, state, county, and local environmental regulations applicable to the Airport. L. The County, City or its representative(s) shall have the right at reasonable times to visit sites and enter buildings, which are completed, or in the process of being constructed, changed, repaired, moved, or demolished. Page

29 COUNTY OF MUSKEGON FY2017 ADOPTED CAPITAL IMPROVEMENT PLAN BY FUNDING SOURCE ADOPTED TOTAL SOURCE OF FUNDING (FY 2017) DEPARTMENT / PROJECT TOTAL OPERATING EQUIPMENT BOND COST FUNDS REVOLVING PROCEEDS GRANT OTHER NOTES AIRPORT Airport Improvement Program Runway 6/24 Pavement/Lighting Rehabilitation FY17 175,000 4, ,625 BROOKHAVEN Copper Hot Water Main 52,000 52,000 Boiler Room Holding Tank 9,500 9,500 Pellet Base Warmer 6,000 6,000 COUNTY PARKS Moore Water Wells Replaced 8,000 8,000 Meinert ADA Restrooms 145,834 52,500 93,334 1 / 2 Patterson Caretaker Residence Exterior Repair 10,000 10,000 Pioneer Replace ADA Restroom 402, , ,566 1 / 2 HEALTHWEST Vehicle Leases (8) 18,000 18,000 FACILITIES MANAGEMENT Heritage Landing Stage Canopy and Structure Evaluation 10,000 10,000 South Campus-Harris Bldg Roof and Skylights 70,000 70,000 REGISTER OF DEEDS Deeds Automation Fund Archive Writer 89,000 89,000 SHERIFF Sheriff Operations Jail Door Card Readers 31,500 31,500 3 SOLID WASTE HHW Storage Facility - Whitehall 100, ,000 Site Video Equipment 50,000 50,000 Replace Flare Skid 200, ,000 Paved Surface Repair/Replace 50,000 50,000 Alternate Daily Cover/Maintenance 100, ,000 Cell 4 Landfill Gas Collection 250, ,000 TRANSIT (M.A.T.S.) Small Buses , ,106 Support, Security, and Fueling Equipment 127, ,500 MATS Technology Study 50,000 50,000 Support Vehicles 125, ,000 WASTEWATER Admin IT/Communications Electronics Upgrade 10,000 10,000 Ops Coll/Treat/Maint Rapid Infiltration System Upgrade 1,300,000 1,300,000 Telemetering Improvements - Metro Site 50,000 50,000 D Station Pump Upgrades 500, ,000 Flume Trash Rake 1,000,000 1,000,000 Trash Rakes at Rapid Infiltration 950, ,000 Farm 2 Row-Crop Tractors, 1 Corn Planter 200, ,000 Irrigation Rig 800, ,000 Fleet Used Dump Truck 300, , x4 Trucks 90,000 90,000 Shop Hoist 25,000 25,000 NOTES: 1. Part of 2015 Capital Improvement Bond Project. 2. Contingent upon grant funding. 3. To be funded from remaining Bond Proceeds from Jail Construction Project.

30 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET Fund Airport Dept 0535-TSA Security-Airport ESTIMATED REVENUES Federal Grant Revenue-Direct , Airport-Field Use Reimbursements-Other 21,900 21, ,900 TOTAL ESTIMATED REVENUES 21,900 21,900 21,900 21,900 APPROPRIATIONS LEO Security Costs 21,900 21,900 21,900 21,900 TOTAL APPROPRIATIONS 21,900 21,900 21,900 21,900 NET OF REVENUES/APPROPRIATIONS TSA Security-Airport Dept 0536-Commercial Aviation ESTIMATED REVENUES Federal Grant Revenue-Direct State Grant 22,294 20, , State Grant - MAC ARFF 0 2, Charges for Service 1, Ground lease revenues-gvb Utilities 68,985 73,850 76,065 76, Concessions 5,573 3,800 2,040 2, Gasoline Oil and Garage Items Rental Car Commissions 126, , , , Customer Service Facility Charge 22,507 20,500 20,500 20, Restaurant Commissions Parking Lot Commissions 84,019 95,000 95,000 95, Airport-Field Use 19,138 19,700 19,500 19, Field Commissions Ramp Overnight Fees Enplanement Fees 2,596 2,500 2,500 2, Interest Earned 9,845 7,000 7,000 7, Interest on Past Due Accounts Hangar Rent 10, Terminal Rent 92,917 93,442 93,631 93, Replacement Cost Transfer 40,300 43,421 43,421 43, Sale of Assets Page 438 of 603

31 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET Gain on Sale of Fixed Assets (6,257) Contribution from General Fund 445, , , , Reimbursements-Other 112 1,553 1,253 1, Prisoner Transport Reimbursement Reimb-Trash Pickup 1,410 1,435 1,435 1, Reimb-Snow Removal Reimb-Sales Tax 1,765 1,697 1,700 1, Refunds General 2,872 1, Cash Over/Short TOTAL ESTIMATED REVENUES 953, , , ,135 APPROPRIATIONS Salary and Fringe Provision for Comp SickVac Absences 4, Regular Wages 425, , , , Overtime-First 18,344 12, , Overtime-Second 8,295 9, , FICA 33,343 31,746 32,645 34, Medical Insurance 111, , , , Life Insurance Retirement 50,637 43,071 49,286 49, Annual DB ER Contr Expenditures Contra (49,217) (43,071) 0 (49,286) Pension Expense-GASB 68 69,597 48, , Retirement-DC Contributions 0 3,795 4,012 5, Retirement-Funding Contribution Benefit Option Plans 486 1,200 1,200 1, Dental Insurance 5,935 5,853 6,227 6, Retirees' Benefits 14,605 10,393 13,222 13, Provision for Net OPEB Obl Exp 30,494 30, , Retirees' Benefits-HCSP DC 0 3,795 4,012 5, Vision Long Term Disability Insurance Longevity 5,235 4,720 5,010 5, Cost of Living ,413 2, Unemployment Insurance Workers' Compensation Insurance 6,823 6,570 6,700 6, Salary Savings Printing Xerox Copies - Office Services Paper and other Office Supplies 2,034 1,800 2,000 2,000 Page 439 of 603

32 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET Office Equipment under $5000 1,793 1,500 1, Postage Safety Equipment Uniform and Accessories Food Periodicals Gasoline, oil, filters, etc. 27,170 15,000 35,000 25, Flowers, Plants and Plant Labels Janitorial Supplies 8,117 17,000 7,000 7, Building & Grounds Maint Supplies 26,248 25,000 25,000 25, Equipment Maintenance Materials 13,249 29,750 24,750 24, Contractual Services 39,074 38,900 38,900 19, Contractual Services from CFC Reserve 4, Crash Fire Rescue Services 110, , , , Membership and Dues 3,779 1,860 2,240 2, Trash-Pickup 2,964 3,300 3,300 3, Inspection Audit Expense 3,122 2,507 3,122 3, Legal Fees 2,193 1,000 4,000 4, Telephone 31,591 33,030 32,930 32, Auto Allowance-Mileage 1, Conference and Seminars 1,710 2, , Other Travel Expenses 2,907 2, , Advertising 59,611 40,000 50,000 30, Auto Collision 9,789 2,350 9,789 3, Auto Insurance Property/Fire Insurance 27,746 28,130 27,746 28, General Liability Insurance 26,697 18,645 26,697 18, Electricity 169, , , , Natural Gas 38,657 40,000 40,000 40, Water 18,174 19,000 20,000 20, Maintenance of Building-Other 16,562 2, Equipment Repair & Maint 6,263 57,028 18,175 18, Vehicle Repair and Service Grounds Care (9,200) 2,500 41,000 23, Copier Lease Cost 3,249 2, Equipment Lease-Interest 5,889 5,704 5,484 5, Software Software Upgrades and Maintenance Licenses and Permits 2,253 2,494 2,494 2, General Admin Exp-2 CFR ,495 25,124 25,124 34,134 Page 440 of 603

33 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET Gen Admin Exp-Payoff Allocation 10,665 8,910 8,019 8, Gen Admin Exp-Donated Leave Allocation Gen Admin Exp-Early Retire Incent Alloc 475 1, IT Support Chargebacks 21,936 27,676 27,676 26, Bad Debt costs Cap. Improv. Energy Savings 13,506 12,051 12,062 12, Depreciation and Amortization 195, , , , Deprec-Contributed Capital 955, , , , General Equipment Vehicles Interest Exp on Long Term Debt Utility/Operational Savings TOTAL APPROPRIATIONS 2,634,030 2,560,927 2,540,112 2,614,713 NET OF REVENUES/APPROPRIATIONS Commercial Aviation (1,680,991) (1,572,272) (1,619,917) (1,724,578) Dept 0537-T-Hangars ESTIMATED REVENUES Utilities Rental of property and Equipment 86,411 83,700 86,820 86, USCG Hanger Rent Contribution from General Fund (33,946) (69,382) (25,949) (73,069) TOTAL ESTIMATED REVENUES 52,465 14,318 60,871 13,751 APPROPRIATIONS Building & Grounds Maint Supplies Equipment Maintenance Materials Telephone 1, Electricity 1,879 2,000 2,000 2, Maintenance of Building-Other 98 1, , Equipment Repair & Maint Depreciation and Amortization 10,201 10,201 10,201 10, Interest Exp on Long Term Debt TOTAL APPROPRIATIONS 14,297 14,318 12,201 13,751 NET OF REVENUES/APPROPRIATIONS T-Hangars 38, ,670 0 Dept 0538-Brownstone Page 441 of 603

34 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET ESTIMATED REVENUES Charges for Service Restaurant Commissions 2,473 2,500 2,500 2,500 TOTAL ESTIMATED REVENUES 2,473 2,500 2,500 2,500 APPROPRIATIONS Food Building & Grounds Maint Supplies Equipment Maintenance Materials Contractual Services Maintenance of Building-Other , Equipment Repair & Maint 2,037 1,150 2,000 1, Misc. - Contributions TOTAL APPROPRIATIONS 2,923 2,500 3,150 2,500 NET OF REVENUES/APPROPRIATIONS Brownstone (450) 0 (650) 0 Dept 0539-U.S. Coast Guard ESTIMATED REVENUES USCG Hanger Rent 21,336 21,340 23,744 23, Contribution from General Fund 58,414 63,509 63,214 56,684 TOTAL ESTIMATED REVENUES 79,750 84,849 86,958 80,428 APPROPRIATIONS Building & Grounds Maint Supplies Equipment Maintenance Materials Contractual Services Inspection Telephone 0 1,366 1,740 1, Property/Fire Insurance Maintenance of Building-Other 773 7,775 3,624 3, Equipment Repair & Maint Depreciation and Amortization 73,769 74,413 74,413 73,769 TOTAL APPROPRIATIONS 75,526 84,849 81,072 80,428 NET OF REVENUES/APPROPRIATIONS U.S. Coast Guard 4, ,886 0 Dept 0540-Construction Page 442 of 603

35 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET ESTIMATED REVENUES Federal Pass Thru 1, Federal Grant Revenue-Direct 1,430, ,250 1,145, , State Grant 37,639 16,375 28,625 4, Land Easements Contribution from General Fund 41,784 16,375 32,132 4, Approp from Public Improvement Reimbursements-Other 45, , ,562 TOTAL ESTIMATED REVENUES 1,556, ,000 1,282, ,562 APPROPRIATIONS Contractual Services Engineering and Development 24, , , Advertising Depreciation and Amortization 3, , Deprec-Contributed Capital 44, , Miscellaneous Construction (18,995) 327, Automated Parking Lot CFC Rental Car Facility Vehicles Capital Outlay-Full Accrual Contra 0 (655,000) 0 (175,000) TOTAL APPROPRIATIONS 53, ,558 0 NET OF REVENUES/APPROPRIATIONS Construction 1,502, ,000 1,225, ,562 Dept 0541-General Aviation ESTIMATED REVENUES Gasoline Oil and Garage Items 44,663 44,000 44,000 44, Airport-Field Use 28,575 24,000 24,000 24, Field Commissions 67,816 40,000 80,000 40, Ramp Overnight Fees 1,725 3, , Misc Landing Fees Misc Field Commissions 8,657 8,300 8,300 6, Hangar Rent 123, , , , Replacement Cost Transfer 30,470 34,095 34,095 34,095 TOTAL ESTIMATED REVENUES 305, , , ,095 Page 443 of 603

36 FY2017 Adopted Budget 09/29/2016 FY2016 FY2017 FY2017 FY2015 AMENDED REQUESTED ADOPTED GL NUMBER DESCRIPTION ACTIVITY BUDGET BUDGET BUDGET APPROPRIATIONS Building & Grounds Maint Supplies 0 3, Equipment Maintenance Materials Maintenance of Building-Other Equipment Repair & Maint 0 4, TOTAL APPROPRIATIONS 0 7, NET OF REVENUES/APPROPRIATIONS General Aviation 305, , , ,095 Dept 0542-Terminal Building Costs ESTIMATED REVENUES State Grant State Grant-Contributed Capital Passenger Facility Charge 74,831 66,000 66,000 66, Contribution from General Fund TOTAL ESTIMATED REVENUES 74,831 66,000 66,000 66,000 APPROPRIATIONS Redemption of Bonds Interest Exp on Long Term Debt Paying Agent & Other Fees TOTAL APPROPRIATIONS NET OF REVENUES/APPROPRIATIONS Terminal Building Costs 74,831 66,000 66,000 66,000 Dept 0543-Business Park APPROPRIATIONS Advertising Licenses and Permits TOTAL APPROPRIATIONS NET OF REVENUES/APPROPRIATIONS Business Park 0 (275) (275) (275) ESTIMATED REVENUES - FUND ,046,472 2,126,917 2,771,554 1,673,371 APPROPRIATIONS - FUND ,802,637 2,692,738 2,716,268 2,733,567 NET OF REVENUES/APPROPRIATIONS - FUND ,835 (565,821) 55,286 (1,060,196) Page 444 of 603

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