# Presentation: 910806

## Issues in Airport Compliance

- Southwest Region Airports Division
- Partnership Conference 2005
- Keri Spencer & Susan Johnson

## Outline

**Airport Obligations**
**Land Use**
**Airport Revenue Use**
**14 CFR Parts 13 & 16**

## Airport Obligations – Refresher

***Grant Agreements***
***Surplus Property Conveyances***
***Non-Surplus Property Conveyances***
***Exclusive Rights Obligations***
***Civil Rights Obligations***

## Airport Obligations – Refresher

***Know your obligations!***
***Read the documents of conveyance and grant assurances for specifics***
**Special provisions**
**Obligations that run as long as it is used as an airport**

## Land Use

***Land is central to the character and operation of the airport!***
***Need to ensure that land use surrounding airport does not***
**Create or contribute to flight hazards**
**Create noise impacts**
**Negative impact on airport operations**

## Land Use

***Not all airport sponsors have zoning authority***
**“****to the extent reasonable, **_**appropriate action**_** including zoning will be taken to restrict the use of lands in the vicinity of the airport to activities and purposes compatible with normal airport operations.” – FAA Order 5190.6A**

## Slide 7

## Slide 8

## Land Use

***“******Appropriate action” besides zoning***
**Education**
**Sound insulation**
**Land acquisition**
**Purchase of easements**
**Real estate disclosure programs**

## Land Use – Residential Facilities

***FAA objects to residential facilities on federally-obligated airports***
***Added risks***
**Safety**
**Security**
**Efficiency**
**Administration**

## Slide 11

## Slide 12

## Slide 13

## Land Use – Non-aeronautical activities

***Non-aeronautical leaseholds should not be located on designated aeronautical use land, unless:***
**FAA approval,**
**Indication on ALP, **_**and**_**/**_**or**_
**Property released by FAA**

## Slide 15

## Slide 16

## Land Use – Disposal

***For land acquired with Grant funds:***
**Need permission of FAA to dispose**
**FAA must determine that land is no longer needed for airport purposes**
***Net proceeds:***
**Federal share of FMV reinvested in airport or returned to the Trust Fund**
**Sponsor share is airport revenue**

## Land Use – Disposal

***Land acquired with no Federal Assistance:***
**Revenue retention provision applicable**
**Sponsor must get FAA’s approval for removal of land from ALP**

## Land Use – Disposal

***For specific information on disposal of surplus and non-surplus property contact State/ADO or region***
**Complex and specific procedures and authorities for disposal**

## Land Use – GA Land Use Inspections

**FAA directed to report on scope of unauthorized use of airport land.**
**Agreed to conduct on-site land use inspections at a minimum of 18 federally-obligated airports annually.**

## Land Use – GA Land Use Inspections

**Inspections serve as a compliance oversight and surveillance tool.**
**Provide standardized reporting formats and supporting data for formal and informal compliance determinations.**

## Slide 22

## Slide 23

## Airport Revenue Use – Basic Requirement

***Airport revenue must be for the capital or operating costs of:***
**The airport,**
**The local airport system, or**
**Other facilities owned or operated by the sponsor directly and substantially related to the air transportation of passengers or property.**

## Airport Revenue Use – Basic Requirement

***Proceeds from land sales or leases are airport revenue.***

## Airport Revenue Use – Applicability

***Airports receiving Federal assistance***
***Federal property conveyed after 10/01/1996***
***Private operators accepting Federal assistance after 10/01/1996***
***Requirement continues indefinitely as long as airport is operating***

## Airport Revenue Use – Prohibited Uses

***Payments exceeding reasonable value of services provided***
***General Economic Development***
***Payments in Lieu of taxes***

## Airport Revenue Use – Prohibited Uses

***Loans without interest***
***Land use by sponsor at less than FMV***
***Impact/Contingency Fees***

## Airport Revenue Use – Revenue Diversion Sanctions

***Withhold future grants***
***Withhold payments or modification of existing grant***
***Withhold new PFC approval***
***Opportunity for hearing – corrective action***

## Airport Revenue Use – Revenue Diversion Sanctions

***Withhold transportation funds under Title 49***
***Assess civil penalties – may be treble damages***
***Enforcement order from Federal Court***

## Airport Revenue Use – Self Sustaining Rate Structure

***Aeronautical fees reasonable***
**May be below FMV but should recover costs**
***Non-aeronautical fees should be FMV***

## Airport Revenue Use – Self Sustaining Rate Structure

***If market conditions do not permit sponsor to recover costs and provide needed aeronautical services, operating losses OK***

## Airport Revenue Use – Allowable Reduced Rates

***Community/charitable use of airport property***
***Not-for-profit Aviation Museums***
***Aeronautical Higher Education Programs***
***Civil Air Patrol leases***
***Use of Property by military units with aviation mission***
***Mass transit airport access***

## Airport Revenue Use

***Airports required to file under the Airport Financial Reporting Program***
**Airports obligated by AIP grant’s issued on or after 1/01/1995**
**Commercial service airports that enplane 2,500 or more passengers in a calendar year**
**Provided commercial service meeting requirements in previous year**

## Airport Revenue Use

***FAA established website to eliminate need for airports to file hard copies of financial reports***
**Compliance Activity Tracking System (CATS)**
_**[http://cats.crownci.com](http://cats.crownci.com/)**_
**Airport Financial Reporting Program Help Desk – (202)267-3446**

## Slide 36

## 14 CFR Parts 13 & 16

**14 CFR Part 13 – Informal Complaints**
**14 CFR Part 16 – Formal Complaints**

## 14 CFR Parts 13 & 16 – Informal Complaint Resolution

***FAA encourages informal resolution of complaints***
***States will consult with the ADO as appropriate***
***FAA encourages Dispute Resolution Procedures***

## 14 CFR Parts 13 & 16 – Formal Complaints

***Time Deadlines and Limited Pleadings***
***Complainants must have standing***
***Parties must have made good faith efforts to resolve prior to filing***

## 14 CFR Parts 13 & 16 – Formal Complaints

***Director of Office of Airport Safety and Standards issues determination***
***Parties may appeal to Associate Administrator***
***Part 16 process does not provide for the award of damages***

## Questions?