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Aviation Board Meeting

April 02, 2020

Call to Order & Introductions

Approve Consent Agenda

February 11, 2020 Board Meeting Minutes

Public Comments

Limited to 2 Minutes per Speaker

OREGON DEPARTMENT OF AVIATION

Directors Update

April 2, 2020

(503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION

ODA Office operations

• Teleworking/On-site staff

Office open, by appointment only

Minimum of two staff in office

majority of staff are teleworking

no end date, planning for this to continue until end of April

• New staff

Andrea Abrahamson– Fiscal Analyst, started Monday the 30th

Anthony Beach – State Airports Manager, starts April 13

Hiring two summer temporary helpers for landscaping

• Mary B.

Baby boy, born 3/16

on maternity leave until mid-June

Impact of Fuel tax revenue reduction

Expecting significant decrease in fuel tax revenues, amount and duration unknown. March fuel tax #’s available mid-May. April #’s available mid-June, and will be the litmus test for how low they will go. We are guessing about 50% drop in March, and a 90% drop in April. Beyond April is difficult to estimate, depends on when distancing measures are relaxed, and how soon airlines resume prior schedules.

86% of annual operating revenue comes from the fuel tax

5% of revenue from aircraft registration

3.5% of revenue from leases

5.5% from fuel flowage, tie-down, special use, inspections, etc.

These funds pay for agency operation as well as the grants programs. Annual operating cost (excluding grants and PMP) about $2.5M.

Federal assistance for airports

From the $2T CARE Act passed by Congress last week

1) $50B to airlines, $10B to airports

2) Of the $10B, $7.4B goes to the commercial service airports, $2B for AIP eligible projects, $500M for waiver of local match on 2020 grants, $56M for Essential Air Service, and $100M for NPIAS GA airports.

3) Of the $100M for GA airports, the amount will be a 100% grant, for any purpose airport revenues can be used for (i.e. operating costs), amount will be “based on the categories published in the most recent NPIAS (urban, regional, local, remote/emergency), reflecting the percentage of the aggregate published eligible development costs for each such category, then dividing the allocated funds evenly among the eligible airports in each category, rounding up to the nearest thousand dollars”.(With about 2800 NPIAS GA Airports, the average would be $36,000 each.)

4) OR has 12 Urban, 12 Regional, 27 Local and 39 remote/emergency airports

State owned – 1 Urban, 1 Regional, 8 local and 1 remote that are NPIAS eligible.

1) Legislation also suspended the Aviation Excise taxes through December 31, 2020. These taxes go into the Aviation Trust Fund, and until recently were generating about $43M/day. Funds the FAA operations, F&E, R&D, EAS, AIP grants. Loss of taxes will have an impact on the 2021 grants.

Short term Financials

Current cash balance as of 4/1/20 $12.8M

Ops $769K, A/C registration $841K, PMP $979K, ASAP $10.2M

Enough cash in Ops for ~4 months of expenses

Encumbered/committed $6.2M

COAR $2.2M

SOAR $2.3M

ROAR $500K

PMP $752K

10% match on FAA Siletz Bay and Condon $150K ??

10% match on System plan $25K ??

Misc. existing contracts $300K

We will need to go to E-Board in mid-May to request approval to transfer funds from the restricted accounts to operating account.

Cost Containment efforts

PMP 2020 may be postponed (15 airports in southern OR) $1M

SOAR 2019 projects postponed $1.46M

Pacific City, Toledo, Aurora, Cape Blanco

Cascade Locks, Mulino

Prospect runway reconstruction $1.5M

Mulino water improvements $500K

Spring Special Grant cycle cancelled

100th anniversary activities cancelled

Hiring freeze (one vacant operations position)

Travel freeze (other than in-state maintenance)

Projects we are moving forward with

Siletz Bay taxiway rehab (90-100% Federal) $562,795

Condon runway rehab (90-100% federal) $907,076

COAR 2019 (23 projects) 100% ODA $2,300,000

PMP 2019 (valley and coastal airports) $751,879

Design work on Aurora, Chiloquin & Mulino obstruction removal Design work on Cottage Grove & Independence fence installation

Design on Prospect runway rehab

Goal is to have projects ready to bid if pop-up discretionary federal funds become available.

QUESTIONS?

(503)378-4880 3040 25TH STREET, SALEM, OR 97302 WWW.OREGON.GOV/AVIATION ORAVIATION

Finance & Admin Division Update

Finance & Admin Division UpdateFuel Tax Revenue Overview

6 Month Forecast – Our Original Forecast Before Reduction

Current Forecast TOTAL FUEL TAX REVENUE

% Program

Revenue

From Fuel Tax

Operations 876,843 66%

PMP 617,847 100%

COAR 1,154,983 100%

ROAR 577,492 100%

SOAR 577,492 100%

ASAP Program Total 2,309,967 100%

Fuel Tax Total 3,804,657

Finance & Admin Division UpdateEffect of Reduction in Jet Fuel Tax Revenue over 6 months

Gallons sold in March will hit our revenue at the end of May

Current Forecast 25% Reduction 50% Reduction 75% Reduction

Operations 876,843$ 657,632$ 438,422$ 219,211$

PMP 617,847$ 463,385$ 308,923$ 154,462$

COAR 1,154,983$ 866,238$ 577,492$ 288,746$

ROAR 577,492$ 433,119$ 288,746$ 144,373$

SOAR 577,492$ 433,119$ 288,746$ 144,373$

ASAP Program Total 2,309,967$ 1,732,475$ 1,154,983$ 577,492$

Fuel Tax Total 3,804,657$ 2,853,492$ 1,902,328$ 951,164$

Finance & Admin Division Update

Airport or Program Limitation

Expenditures

to Date

Available

Limitation

Remaining

Encumbrances Cash Balances

Operations 5,078,638$ 1,794,368$ 3,284,270$ 58,473$ 768,734$

Aircraft Registration 166,975 49,076 117,899 116,623 840,763

Pavement Maintenance 2,288,530 810,604 1,477,926 752,736 979,360

ASAP 9,305,361 633,267 8,672,094 4,935,173 10,238,553

TOTAL 16,839,504$ 3,287,314$ 13,552,190$ 5,863,005$ 12,827,410$

State Limitations & Cash Balances as of April 1, 2020

State Disparity Study UpdateKeen Independent Research

Annette Humm Keen, PrincipalDavid Keen, Principal

Keen Independent Research LLC

701 N. 1st Street

Phoenix, Arizona 85004

303-385-8515

hummkeen@keenindependent.com

dkeen@keenindependent.com

Oregon Department of AviationOregon Statewide Airport DBE Disparity Study

Oregon Airport Management Association

Board Teleconference

April 2, 2020

Presentation to ODA Board

1. Purpose of the study

2. Study schedule

3. Contract data collection from individual airports

4. Availability survey

5. Other study progress

6. Opportunities for public participation

19

1. Purpose of the study

20

ODA and local airports must implement the Federal DBE Program,

per 49 CFR Part 26

Program applies to FAA-funded contracts

Disparity study provides information to help ODA and each local airport:

Set overall goals for DBE participation on FAA-funded contracts

Consider whether they can achieve overall DBE goals solely

through neutral means

If need to use DBE contract goals, assess the specific

race/ethnic/gender groups eligible for that program component

USDOT instructed agencies to conduct disparity studies after

2005 Ninth Circuit decision in Western States Paving v. WSDOT

FAA is requiring states to perform disparity studies and funding those

studies (Port of Portland previously conducted a disparity study)

2. Study schedule

21

Start

Announce s

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Collect

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ata

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orts

Start

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epth

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ws

Launch a

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surv

ey

Perfo

rm d

ispar

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nalysi

s

Prepare

info

rmat

ion fo

r goals

Prese

nt pre

limin

ary

results

Obta

in fe

edbac

k

Prepare

final r

eport

³³

Oct.

³

Sept.

2019

³

Nov.

³

Dec. Jan.

2020

³Nov.Feb. Mar. Apr. May June July Aug. Sept.

³

Oct. Dec. Jan.

2021

Feb.

³ ³ ³

3a. Contract data for individual airports

FAA-funded contracts awarded Oct. 1, 2014 – Sept. 30, 2019

Awards, including funding source, amount, type of work

Information about prime contractors

Information about subcontractors (names, dollars, types of work)

General information about how contracts are awarded

Any application of DBE contract goals

22

3b. 100% of airports provided contract data

23

Airport name Airport name

1 Bend Municipal Airport 25 Bandon State Airport

2 Creswell Hobby Field Airport 26 Salem McNary Field Airport

3 Seaside Municipal Airport 27 Lake County Airport (Lakeview)

4 Chiloquin State Airport 28 Mulino State Airport

5 Condon State Pauling Field Airport 29 Ontario Municipal Airport

6 Independence State Airport 30 Newport Municipal Airport

7 Siletz Bay State Airport 31 Roseburg Regional Airport

8 Joseph State Airport 32 Madras Municipal Airport

9 Cottage Grove State Airport 33 Baker City Municipal Airport

10 Lebanon State Airport 34 Corvallis Municipal Airport

11 Florence Municipal Airport 35 La Grande/Union County Airport

12 Burns Municipal Airport 36 Eugene Airport Mahlon Sweet Field

13 Grants Pass Airport 37 Southwest OR Regional Airport

14 Gold Beach Municipal Airport 38 Lexington Airport

15 Klamath Falls Airport 39 Ken Jernstedt Airfield (Hood River)

16 Tillamook Airport 40 Illinois Valley Airport

17 McDermitt State Airport 41 Ashland Municipal Airport

18 Grant County Regional Airport Ogilvie Field (John Day) 42 Eastern Oregon Regional Airport - Pendleton

19 Redmond Municipal Airport (Roberts Field) 43 Scappoose Industrial Airpark

20 Rogue Valley International 44 McMinnville Municipal Airport

21 Prineville Airport 45 Albany Municipal Airport

22 Columbia Gorge Regional Airport (Dalles) 46 Astoria Regional Airport

23 Christmas Valley Airport 47 Hermiston Municipal Airport

24 Aurora State Airport 48 Brookings Airport

24

4. Availability surveys now being conducted

5. Other study progress

25

Analyzed distribution of contract dollars by location of contracts

and by types of work

Continued in-depth personal interviews with business owners and

industry associations (12 completed to date)

Held External Stakeholder Group meeting

Held other public meetings

6. Opportunities for public participation

26

Attend a public meeting

Fall 2019 OAMA Conference, Klamath Falls

December 2019 Board Meeting, Corvallis

Spring 2020 OAMA Conference, Salem

April 2020 ODA Board Meeting, virtual

August 2020 Board Meeting, Eugene

October 2020 Governor’s Marketplace, Salem

November 2020 OAMA Meeting, Sunriver

Participate in an availability survey or an in-depth interview

Contact Keen Independent

Visit http://www.keenindependent.com/OregonAirportDBEStudy/

Email us at oregonairportdbestudy@keenindependent.com

or mail information to us

Call the study hotline: 503-308-8275

Contact Heather Peck or Cathy Clark at ODA

Legislative Concepts

Betty Stansbury

Legislative Concepts for the 2021 Long session

1) Elimination of the sunset on aviation fuel taxes

2) Fee for obstruction evaluations

3) Housekeeping (eliminate ROAR, move funds into COAR, prioritization via Administrative rule rather than statute, fees set by AR rather than statute(i.e. airport siting and licensing fee)

Approve Rulemaking per ORS 837-001-0035 Public Records Access & Fees

Kristen Forest

Public Records Request RulemakingAmending ORS 738-001-0035

Background

• DAS made changes to statewide policy on How Agencies Charge Fees for Public Records Requests

• ODA is subject to this policy• ODA is updating OARS to incorporate the terms in the statewide

policy. • Specifically ODA is removing specific rates and referring to the

statewide policy• The new rule will also point to timelines outlined in ORS 192.324 &

ORS 192.329

Public Records Request RulemakingRulemaking Timeline

We Are Here

Public Records Request RulemakingBOARD VOTE

Approve or Reject Rulemaking Per ORS 738-001-0035 Public Records Access and Fees

Executive Session

Per ORS 192.660(2)(e) To conduct deliberations with person designated by the governing body to negotiate real property transactions.

Per ORS 192.660(2)(f) To consider information or records that are exempt by law from public inspection