BEFORE THE 

FEDERAL AVIATION ADMINISTRATION 

WASHINGTON, D.C. 

STERLING AVIATION, LLC, 

Complainant, 

V. 

MILWAUKEE COLTNTY, WISCONSIN, 

Respondent. 

pMkilj 

DEC 9 m a 

PART 16 DOCKETS 

Docket No. 16-09-03 

RESPONDENT'S RESPONSE TO REQUEST 

FOR ADDITIONAL INFORMATION 

Please serve: 

Scott P. Lewis 

Melissa C. Allison 

ANDERSON & KREIGER LLP 

One Canal Park, Suite 200 

Cambridge, MA 02141 

T: 617.621.6560 

F: 617.621.6660 

slewis@andersonkreiger.com 

Timothy R. Karaskiewicz 

Office of the Milwaukee County Corporation Counsel 

Milwaukee County and General Mitchell 

International Airport 

901 North Ninth Street, Room 303 

Milwaukee, WI 53233 

T: 414.747.5712 

F: 414.747.4525 

Timothy.Karaskiewicz@milwcnty.com 

Counsel for Respondent 

—J 

December 8,2009 
BEFORE THE 

FEDERAL AVIATION ADMINISTRATION 

WASHINGTON, D.C. 

STERLING AVIATION, LLC, 

Complainant, 

V. 

MILWAUKEE COUNTY, WISCONSIN, 

Respondent. 

Docket No. 16-09-03 

RESPONDENT'S RESPONSE TO REQUEST 

FOR ADDITIONAL INFORMATION 

The Respondent Milwaukee County (the "County') submits this response to the FAA's 

November 12, 2009 Request for Additional Information. 

Request No. 1: Copies of Sterling Aviation's correspondence to GMIA dated July 17, 2007 and 

August 1, 2007 as referenced in exhibits attached to the Memorandum in 

Support of Respondent's Motion to Dismiss. 

Response: Copies of the requested documents are attached at Tab 1. 

Request No. 2: What is the purpose of the commercial operating permit? Which types of 

aeronautical activities require a commercial operating permit? 

Response: Commercial operating permits at GMIA serve several purposes: they (a) inform 

GMIA management of the scope and location of commercial activities being 

conducted on the airport; (b) require insxirance and indemnification for the 

protection of the airport and its tenants, users and the public; (c) inform a 

permittee of airport security requirements and other rules and regulations; 

(d) ensure that a permittee has entered into an agreement for appropriate airport 

space fi"om which to conduct its activities; (e) prohibit discrimination by a 

permittee; and (f) reflect the requirements of GMIA's grant assurance 

obligations. 
Request No. 3: 

Response: 

Request No. 4: 

Response: 

For some time, all airside commercial activities required a commercial 

operating permit unless the activity was specifically permitted by a lease for 

particular airport property. Several yeeirs ago, however, GMIA decided that it 

would be prudent to require all tenants engaged in airside commercial activities 

to obtain an operating permit, even if the lease already permitted that activity. 

GMIA has worked with tenants over the last few years to achieve this goal. The 

Cessna Service Center is not required to obtain a commercial operating permit 

because it does not offer commercial services to the general public. Cessna's 

operations are limited to maintenance and repair of Cessna Citation model 

aircraft under warranty and the sale of related parts, equipment and accessories. 

Based on the reports submitted by Sterling Aviation and the Cessna Service 

Center to document the amount of aviation fuels delivered to each respective 

company and the fliel flowage fees paid to GMIA, approximately how many 

gallons of aviation fiaels are dispensed by Sterling Aviation and the Cessna 

Service Center in an average year? How many gallons of aviation fuels are 

dispensed by Signature Flight Support? 

Part 135 Cheirter Operators may elect to pay either a fuel flowage fee or landing 

fees. Although their leases require Charter Operators to maintain and report 

fuel flowage, GMIA does not typically accept or request such reports in the 

absence of an audit or some reasonable basis to conclude that a lease violation 

may exist. When GMIA became aware that Sterling was operating both Part 

135 and Part 91 flights from its leased premises in violation of its lease, GMIA 

requested fuel flowage records from Sterling. Sterling, however, has 

consistently refused to provide any records. 

The fuel flowage records for the previous three years for Signature Flight 

Support and the Cessna Service Center are attached at Tab 2. 

Based on the reports documenting the amount of aviation fuels delivered and 

the fuel flowage fees paid to GMIA, approximately how many gallons of 

aviation fuels were dispensed by Scott Aviation in 2003? 

No such reports were furnished by Scott Aviation because Scott Aviation 

elected to pay landing fees. See Response to Request No. 3, Further, because 

no audit of Scott's Aviation's fuel flowage was conducted, GMIA did not 

request or receive fuel flowage records from Scott Aviation. 

Request No. 5: Aside from Signature Flight Support and the Cessna Service Center, does 

GMIA permit any other aeronautical service providers to dispense fiiel? 
Response: No other aeronautical service providers are permitted to dispense fuel unless 

such a provider is self-fueling. 

By its attorneys. 

Sc^P . Le 

Jwelissa C.I 

M.NDERSON ^-KREIGER LLP 

One Canal Park, Suite 200 

Cambridge, MA 02141 

T: 617.621.6560 

F: 617.621.6660 

slevvds@andersonkreiger.com 

Timothy R. Karaskiewicz 

Office of the Milwaukee Covmty Corporation Counsel 

Milwaukee County and General Mitchell 

International Airport 

901 North Ninth Street, Room 303 

Milwaukee, WI 53233 

T: 414.747.5712 

F: 414.747.4525 

Timothy.Karaskiewicz@milwcnty.com 

Counsel for Respondent 
CERTIFICATE OF SERVICE 

I hereby certify in accordance with 14 CFR § 16.15(a) that today I served the foregoing 

Respondent's Response to Request for Additional Information on the following persons at the 

following addresses by Federal Express: 

Kent S. Jackson 

Jackson & Wade, L.L.C. 

21628 Midland Drive 

Shawnee, KS 66218 

Office of Chief Counsel, Attention: 

FAA Part 16 Airport Proceedings Docket 

AGC-610 

FEDERAL AVIATION ADMINISTRATION 

800 Independence Avenue, SW 

Washington, DC 20591 

Dated this 8* day of December, 2009 
Sterliii^Aviation 

ROB GORT 

Chid OpmUng Olhar 

Mr. Barry Bateman 

Airport Director 

General Mitchell International Airport 

5300 South Howell Avenue 

Milwaukee, WI 53207-6189 

July 17, 2007 

Dear Barry: 

I am quite perplexed at the lack of results from the recent meetings between Tim 

Karaskiewicz and our attorney Mike Lapin regarding Sterling Aviation's fueling 

authority. At the last meeting Chris Doerr, you and I attended, you presented a draft of a 

document that would clarify these issues and allow for the fueling of all Sterling aircraft 

for both Part 91 and Part 135 operations as long as these aircraft were listed on the 

Sterling Air Carrier Certificate. 

Additionally, in a subsequent meeting 1 had with George Torres, he voiced his support for 

this agreement and indicated the fueling of sub-contract aircraft flying Sterling clients 

would also be allowed, as would aircraft used in conducting demonstration flights in 

sxipport of an aircraft acquisition. 

There was no acknowledgment of this document by Mr. Karaskiewicz at meetings with 

our attorney. In fact Mr. Karaskiewicz asked that Sterlmg change its business model to 

fly all flight 135. This idea has been discussed on several occasions and is simply not 

possible. It would not allow us to sustain the business and service levels our clients 

expect as it would trigger the FET 7.5% tax to our aircraft owners and subject them to 

more stringent FAA operational limitations in conducting their business flights. 

We would like to come to a final resolution on these fueling issues sooner rather than 

later. Kindly advise if the draft document you presented is still under consideration. If it 

is I would like to execute it. If it is not, please advise rae as to any alternative ideas we 

can move forward with to bring these discussions to a conclusion. 

Rob Gort 

President and COO 

5480 South Howell Avenue Milwaukee. WI 53207 414.744.1300 414.744.0547 847.767,1966 
1 
SterlingAviation 

ROB GORT 

Ctket Opersting OHK^I 

August 1,2007 

Mr. Barry Bateman 

Airport Director 

General Mitchell International Airport 

5300 South Howell Avenue 

Milwaukee, WI 53207-6189 

Dear Mr. Bateman: 

I found your July 25'*^ letter to be quite confusing and frustrating. Further, your 

references to multiple requests by Sterling Aviation are not accurate and are inconsistent 

with your previous communications with us. 

We are adding jobs, revenue and economic development to the County and the airport. 

No other airport tenant can make this claim. Our objective is to simply continue that 

effort to add further value to the County without undue interference. The position you 

are now taking would support the business interests of Signature Flight Support, a foreign 

owned corporation, over those of Sterling Aviation, LLC with local Wisconsin ownership 

despite the fact our business model can only add to the revenues of other enterprises at 

the airport. 

For the avoidance of doubt I will clearly summarize the issues at hand. 

Sterling Aviation seeks to clarify the fuel rights afforded to us by our land lease with the 

County. It is our desire to perform, and confirm our rights to fuel; 

1. Only aircraft listed on our Air Carrier Certificate in which we have either an 

operating agreement or a lease, regardless of whether those flights are conducted 

under FAR Part 91 or FAR Part 135 regulations; and 

2. Aircraft of other Air Carriers with whom we have contracted with to transport our 

clients under FAR Part 135 regulations; and 

3. Aircraft we are demonstrating to purchase or which have been recently purchased 

by either ourselves or one of our clients; and which are or will be going through 

the FAA process of being listed on our Air Carrier Certificate; and 

4. Aircraft in which our FAA approved repair station is performing maintenance. 

(The same rights afforded Cessna's Citation's Service Center in their land lease.) 

5480 Soum Howeil Avenue Milwaukee. WI 53207 414.(44.1300 414 744 0547 847.767.1966 
It is Sterling Aviation's position that our existing land lease with the County allows for 

all the above fueling rights and we are in possession of the appropriate County issued 

permits to conduct commercial operations at Mitchell Field. 

As stated in my last correspondence, you had previously presented us with a document 

that would resolve most of these issues. However, in my attorney's last discussion with 

the County attorney this document was neither part of the conversation, nor was it part of 

your current correspondence. 

We seek confirmation of these rights only because you have informed us that your 

interpretation of the rights given to us by our land lease with the County differs from our 

own. Please comment on whether we can come to an amicable understanding on the 

fueling rights listed above either through the document you previously presented (copy 

attached) or through some other vehicle. 

Rob Gort 

President, Sterling Aviation 

cc: Scott Walker, County Executive 

James White, County Supervisor 

Michael Mayo, County Supervisor 

William Domina, Corporation Counsel 

George Torres, Director of Public Transportation and Public Works 

Steven Wright, Airport Properties Specialist 

Timothy Karaskiewicz, Principal Assistant Corporation Counsel 

Kathy Nelson, Airport Properties Manager 

Tony Snieg, Deputy Airport Director/Finance Administration 

Mike Lappin, Attorney 
1 . 

Lil il"iU 

.Sta'. •rti'Sii'" of Cor!C~[..i:: Air Chai^.^ i and h i L Ta.xi 

(a) .".I'l aircrafi. cnarLer (li'oiiHiie: c i el OiJi^rai. ot ; ii;'j air t.ay: 

operator is i pei.soii or persons, firm, or ^.'urporat S-OJ, 

engaged in the business of providing .air t Lanspor ca t ion (or 

persons or property) Co the general public for hire, either 

on a charter basis (Coriunercia 1 Operator) or as ar. a n ia.<\ 

operator, a s defined in the Federal .Aviation .Act of 19b6 o.' 

as said Act mcy be supplemented or amended from time t c 

I i rrie . 

Mi fi imum Standards 

ia ) 

(bi 

i r ) 

Ti"ie Com;ner:i-J i OperatO!: subjec t to thi s sectio n sh-jli Le-;iS^ 

from the County an area of not less than 30,000 square feei 

of ground space on i/hich shall be Located a liuiiding of at 

least 6,000 square feet of floor space, including an office 

and customer lounge and rest rooms, all properly heated arxi 

lighted. The Operator shall provide adequate pavea aut;.. 

parking space wichin the leased area suffrcienc tc 

accommodate all activities and operations. Ttie Operatot 

shall provide adequate pa"6d aircraft parking apron '//ithin 

the leased area sufficient to accommodate all act i vii ie.^ 

and operaiions. 

In addition to the requicements of 2. (a) ;1JOVS, 

Charter/A.ir Taxi Operator shall provide: 

the .^.1 

(1) .Aircraft charter service {Commercial Operations) as 

defin&d Fn Patt 135 of the Feder^. 1 Aviation 

Pequla t ions; n(, 

i>, r-.LL LiiKi servi_e subjei.t L'^ fart iy'd .-.i m e EconcMi'. 

Re-.iul at ions of the Feder?: L Aviation f^.cK and Part \3 t 

of the Federal Aviation Regulations. 

Mc less than two aircraft, one single—engine (four placej 

and one tiiu 111—eng ine 3ircr=irt, or t>.-/o multi-engine 

aircraft, shall be maintained, leased, or owned, with the 

Operator being capable of providing air ta;-! ;ervic6 un.riei 

instrument conditions. 

The A.ir Charter/Air Ta.'.i Ope-'ator subject to this secti'^r. 

and performing the services ur.dei" this cit^gory vail l:--

required tc- carry ttie fol lo'.-.'i..'r-; types of irj.si.'rance in tiie 

1 iini t s spe-.: i f ied . 

(1) Aircraft Liability; 

Bodily Injury 

?1,000,000 per occurrence 

Passeager Liability 

Sl.nOfi.oOO e.=.ch passengt^ ii accidei" ' 
^ 

r-roperty Darniige 

51,000,000 each accident 

{2) Co.mprehensive Public Liability and Comprehensive 

fr-.jperty Damage: 

Godily Injury 

51,000,000 each person 

Property Damage 

3 1,000,000 each accident 

(3) I'iotor Vehicle Liability; 

Si,000,000 CSL 

(4) Workers Compensation ana Disability coverage as 

required by law 

(d) Air Charter and/or Air Taxi service shall be available 

twenty-four 124) hours a day, seven (7) dsys a weel<-. 

(e) An .Agreement between a Commercial Operator subject to this 

section shall be mutually agreed upon between the parties 

commensurate with the Operator's finaficial investment in 

his f.; c i 1 i t y . 

'f) The Air Charter/Air Ta.xi Operator snali have in his employ, 

and on duty during the appropriate business hours, trained 

personnel in such numbers as are required to meet the 

minimum standards set forth in an efficient manner. The 

Operator shall also maintair, during ail business !"ours, i 

i; e •••j. •.!,.-; i .1 -: pe : soi^ i ;• i: s r :i- • •.• vup-e i ' • ; •• < •- oper i • : : ;• - i • 

tlie lease d ai^a or ttie aiip^^it an d v;iih tn e authorizatio n 

t o represen t an d hav e availabl e sufficien t qualifie d 

operating crews and satisfactory nu.mber of personnel for 

chscking in passengers, handling of luggage, ticketing, and 

for furnishing or arranging for suitable ground 

transportation. The prospective Operator shall provide 

reasonable assurance of a continued availability of 

qualified operating crews and approved aircraft within a 

reasonable or specified maKimum notice period. 

(g) The Air Charter/Air Taxi Opecato c shall provide proof of 

adequate e;-;perience. The following shall be considered as 

one measure of adequate e.Kpe rience: The i.-^id i vidual owner or 

one of the partners of the partnership, and, if a corporat'r 

structure, r.he full-time man;qing officei or employee, musf. 

have had three (3) years' ft;:per ience ouiinq the las: fi'e 

(5) years as ari ait ta:<i or charter operitor. 

(h) Ths hit Chaftec/A.ii: Taxi Operator may provide fuel services 

for aircrafc wKiich are on th-s charter certificate only. 

The Air Charter/Air Taxi Operfitor may not provids fueling 

j for aircraft that ars providing charter services on behalf / 

\ of The Air Chatrter/Air Tazi Operator. The Air Charter/Air / 

'- Tax i Opsratfir ma y fu<»l on aircraf t whi^n It is belfiq flown 

/ 
The Air Charter/Ai r Ta;. i "-^^rr^o7"~sh a iT'^'^^i;^, ? 

n..cessary operarin g permit from tne Airpor t Director . 

• r E-. I i 

Reference 

General Mitchell International Airport 

Concession Revenue Report 

Signature Flowage 2007-2009 YTD 

For the Period January, 2007 through December, 2009 

Activity Period Concession Base Revenue Earned Rate 

Signature Filght Support Corporation - Fixed Base Operator 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Rowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Rowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Fkjwage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

FBO Fuel Flowage 

January, 2007 

February, 2007 

March, 2007 

April, 2007 

May. 2007 

June, 2007 

July, 2007 

August. 2007 

September, 2007 

October, 2007 

November. 2007 

December, 2007 

January. 2008 

February, 2008 

March, 2008 

April, 2008 

May, 2008 

June, 2008 

July, 2008 

August, 2008 

September, 2008 

October, 2008 

November. 2008 

Decemtwr, 2008 

January, 2009 

February, 2009 

March, 2009 

April, 2009 

May, 2009 

June, 2009 

July, 2009 

August. 2009 

September, 2009 

October, 2009 

Provision Sub - Total 

Agreentent Total 

Report Total 

73,732.00 

96,900.00 

121,331.00 

112,994.00 

116,319.00 

132,140.00 

103,872.00 

115,383.00 

124.538.00 

100.367.00 

88,259.00 

125,164.00 

73,028.00 

89,106.00 

117,453.00 

105.023.00 

80,477.00 

144,074.00 

88,000.00 

95,926.00 

127,783.00 

104,474.00 

64,281.00 

122,053.00 

72,987.00 

73,536.00 

82,908.00 

72,419.00 

87,162.00 

87,162.00 

119.791.00 

79,528.00 

111,939.00 

80,162.00 

3,390,271.00 

3.390,271.00 

3,390,271.00 

5.161.24 

6,783.00 

8.493.17 

7,909.58 

8,142.33 

9,249.80 

7,271.04 

8,076.81 

8,717.66 

7,025.69 

6,178.13 

8,761.48 

5,111.96 

6,237.42 

8.221.71 

7,351.61 

5.633.39 

10,085.18 

6,160.00 

6,714.82 

8.944.81 

7.313.18 

4.499.67 

8,543.71 

5.109.08 

5,147.52 

5,803.56 

5.069.33 

6.101.34 

6,101.34 

8,385.37 

5,566.96 

7,835.73 

5,611.34 

237,318.96 

237.318.96 

237,316,96 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

2S-NOV-2009 11:21 AM Page 1 Of 1 
Reference 

General Mitchell International Airport 

Concession Revenue Report 

Cessna Flowage 2007-2009 YTD 

For the Period January, 2007 through December, 2009 

Activity Period Concession Base Revenue Earned Rate 

Cessna Aircraft Company - Service Center 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

Fuel Flowage Charges 

January, 2007 

February, 2007 

March, 2007 

April, 2007 

May, 2007 

June, 2007 

July, 2007 

August, 2007 

September, 2007 

October, 2007 

November, 2007 

December, 2007 

January, 2008 

February, 2008 

March, 2008 

April, 2008 

May, 2008 

June, 2008 

July, 2008 

August. 2008 

September. 2008 

October. 2008 

November, 2008 

December, 2008 

January. 2009 

February. 2009 

March. 2009 

April, 2009 

May, 2009 

June, 2009 

July. 2009 

August, 2009 

September, 2009 

October. 2009 

Provision Sub - Total 

Agreement Total 

Report Total 

22,850.00 

15,651.00 

14,962,00 

15.005.00 

15,434.00 

21,797.00 

14,920.00 

30.600.00 

14,932.00 

14,660.00 

22,692.00 

15,385.00 

15,165.00 

23,037.00 

23,108.00 

30.321.00 

22.834.00 

14.957.00 

29,854.00 

22,581.00 

7,481.00 

15,104.00 

15,295.00 

15.221.00 

22,966.00 

15,195.00 

7,694.00 

15,108.00 

15,322.00 

14,991.00 

22,383.00 

22,865.00 

15,936.00 

15,840.00 

622.146.00 

622,146.00 

622,146.00 

1,599.50 

1,095.57 

1,047.34 

1,050.35 

1,080.38 

1,525.79 

1.044.40 

2,142.00 

1,045.24 

1,026.20 

1,588.44 

1,076.95 

1,061.55 

1,612.59 

1,617.56 

2,122.47 

1,698.38 

1,046.99 

2,089.78 

1,580.67 

523.67 

1,057.28 

1,070.65 

1,065.47 

1,607.62 

1,063.65 

538.58 

1,057.56 

1,072.54 

1.049.37 

1,566.81 

1,600.65 

1,115.52 

1,108.80 

43.550.22 

43,550.22 

43.550.22 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7,00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7,00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

2S-NOV-2009 11:19 AM Page 1 Of 1