 Our next item is a briefing on the aviation five-year capital improvement plan. Mr. Welsed welcome There pro tem Council good afternoon. I'm bill Welsed aviation director for the city of Fort Worth Today, I'll be presenting on the department's five-year capital improvement plan, which includes alliance meets them in Sphinx Hey Kevin, there you go. There's your photo again. Just in case we forgot it. That's actually why I put it there Sorry, let me get this I'd like to start with a few assumptions that we considered as part of our financial planning efforts in relation to our CIP Gas well revenue has declined Significantly, this wasn't unexpected, but it does continue to drop Aviation funding levels are tightening at the federal level and we've seen the impact of this over the last few years With a continual decrease in grant funding demand is high for Fort Worth aviation assets We have a hundred percent occupancy at all three airports And we have for some time with an extensive wait list because of this We're able to maintain our rates and charges at market value while remaining competitive with other regional airports Here are a few of our goals pertaining to CIP development over the next two years. All airports will develop a new master plan federal funding will cover 90% of that cost Although we're representing a presenting a five-year CIP for your consideration We actively manage a 20-year CIP to anticipate funding shortfalls 10 15 years out This also gives the state and FA justification for increased funding levels One of the more difficult objectives was the gradual adjustments of our rates and charges Over the past four years. We've slowly increased fees to market value Which has in turn prepared us for the downturn in gas well revenues and Finally, our goal is to maintain a three-year grant match reserve We expect a minimum level of funding per year for each airport from the state Through the FAA with counsel's approval. We provide the match to secure these grants It's not uncommon for additional funds to become available at the end of the year This three-year reserve allows us to accept these additional discretionary funds if they come available Now we're into the individual airport capital improvement plans Alliance the primary project at alliance is the dual runway extension project total project cost is around 250 million We expect completion in 2017, but with the rain we've seen this could get pushed well into 2018 We'll continue to apply for needed federal discretionary funding to complete to complete this project for years 2018 through 2021 entitlement funds will be used for many of the improvements which is calculated off of the cargo tonnage handled by alliance Since alliance is cataract categorized as a commercial airport. We get the benefit of this fairly dependable revenue source with these funds in 2018 will rehabilitate and replace some of the existing runway and taxiway lighting components and in 2019 will move to the runway shoulders for rehabilitation With the type of aircraft and level of operations alliance sees it's time to begin replacing some of the taxiway pavement on the airfield in 2020 we intend to replace taxiway foxtrot and papa The two pieces of pavement shown in blue which will ensure continued safe operation on those two runway access points Finally in 2021 will rehabilitate taxiway pavement across the airfield extending the useful life of all pavement on the airport Meacham airport CIP is focused on reinvention Over the next two to three years. We're going to see a rapid change in the in the appearance of Meacham airport This has been driven primarily by our limited gas or revenue funds in 2017 will have completed phase one of the airport frontage improvements Which includes placing all overhead utility and electrical wiring underground Phase two with council's approval will replace all fencing with black ornamental perimeter fence with most strip and New gates as well Phase three isn't programmed until 2022 but with a recent total on Chesapeake settlements, we may be able to move this phase up Which includes new sidewalks landscaping and new lighting The Meacham administration building will be complete in January of 2017 This is already funded American Arrow the new Meacham FBO is excited about the anchor tenant Excited about becoming the anchor tenant in this facility We also have all of our other tenants moving back into the building from the temporary facilities that we set up Also in 2017 we expect to receive a grant for the construction of taxiway echo Which runs along the front of the Texas jet FBO and provides access to numerous tenants at the north end of the airport In 2018 we'll begin the process for redevelopment of the old runway 927 land in partnership with the state Many of the businesses at Meacham are excited at the opportunity to expand into this area 2018 will allow for a coordinated master plan effort by the city state and tenants in 2019 will construct new parallel taxiway tango That's the name of the taxiway tango which gives access to undeveloped land on the west side of Meacham and in 2020 and 2021 will begin Rehabilitating tax away's Juliet and apron Delta taxi lane. I know the mayor pro tem asked for a kind of a schematic design I couldn't help it. I had to show it how it exists today This is the new administration building as it stands today This photo was just taken completion as I mentioned is expected in January of 2017 But I would say along with the Alliance project rain could delay that completion date This is a schematic drawing of the front of Meacham airport. That was made a good two to three years ago we're making progress on it the the Wall has been constructed and the entrance Here on the south end Has also been put in leading up to the administration building Spinks Mr. Jordan We have a lot happening at Spinks as well with the new perimeter road construction being complete in spring of 2017 Airport vehicles including loaded fuel trucks will now be able to drive around the runway instead of across it It also opens up access to undeveloped land to the north of the FBO and establishes access to the new Community fire station 42 which will serve south for a worth Also in order to meet yes, I agree our financial goal of making Spinks financially Self-sustainable we're proposing to buy out the leasehold interest in specific hangers at Spinks in 2017 This allows us to receive revenue for the hangar itself and not just the land that it's built on We expect that Spinks will cover its own expenses right Aaron by 2021 Also in 2018 will replace and expand tax away Charlie Which will again open up land for hangar development on the northeast side of the airport? Spinks airport is seeing a significant jump in developer interest and in response were prioritizing access to undeveloped land Also in 2018 will begin construction of the 12-unit hangar complex previously approved by council This is a schematic design of station 42. It'll be located Just off of the new perimeter road on the northwest portion of Spinks Airport We're moving to LED airfield lights in 2019 and we're looking forward to the energy savings of this project Maybe it'll help you balance the budget Aaron and finally in 2020 will begin We'll begin the process for extending the runway and parallel tax away at Spinks through an environmental assessment and construction planned in 2021 Now this project is dependent on the type of aircraft based at Spinks as well as the transient aircraft that operate out of there The transient aircraft that we can attract to Spinks We believe it's needed. We've we've known this for some time The numbers show this to be the case and the tenants have expressed their support for many years now Over the next 20 years. We're looking to ensure we have a diverse and dependable source of revenue for our CIP needs Our ability to cover CIP expenses through operating pay-as-you-go funds is Improving all of our equipment and some of our grant matches are now being made through operating revenue The decision by council to establish the aviation trust fund and the annual investment income Realized puts us in a more competitive position to seek additional Discretionary funding and to keep rates at a competitive level Although gas will revenue continues to drop. We're still seeing the benefits of this revenue Our goal is to spend these one-time funds in a manner that produces long-term operating revenue and Finally the FA continues to recognize the Alliance land credits that have been so valuable to the runway extension project at Alliance We expect these credits to assist us with our Alliance Airport grant matches through 2026 total investment for our three airports over 60 million dollars Over the next five years for Alliance Airport 27 million from each of them and 23 million for Spinks That's with no private dollars considered The department's next step is to seek council approval of the five-year CIP at the June 28th council meeting And with that I can take any questions you might have. Well Bill excellent Presentation I want to commend you and the entire aviation staff for the great work that you all are doing It's clear that the four airports are really going in a great direction And refresh my recollection in terms of an economic impact study. I know that there was one I don't know it was with mechum Spinks or all three, but because I know there's an out There's an old economic impact. So at least with mechum. What's the status of that? That's a good question We actually do not have one programmed right now We do have the existing studies that shows just over a quarter billion dollars annually from each of my report alone But we will take a look at that and see where that falls in our capital improvement plan to update our economic impact Study yeah as councilmember German Zimmer and frequently remind us the city forward has a rich aviation history And it's great to see that the city's airports are progressing very well And the city is making much-needed improvements at the airports To keep up both with trends in the general aviation industry private industry and the whole aviation industry as a whole so Any comments or questions for mr. Well said? Yes, sir. Great job. Thank you. All right