Merrill Field (MRI)- Past, Present, and Future By D. Ralph Gibbs, - PowerPoint PPT Presentation

“Merrill Field (MRI)- Past, Present, and Future” By D. Ralph Gibbs, Ph. D. Airport Manager March 7, 2019 donald.gibbs@anchorageak.gov

Overview  Who are we?  “In the beginning…”  Today  Operations  Fiscal  Airport Improvement Programs (AIP)  Airport Management  MRI-Part of MOA  Concluding Remarks

MRI-Who are we?  Second busiest airport in Alaska! Second only to Ted Stevens IAP.  Economic Engine for Anchorage and Alaska  Given the paucity of Alaskan road systems, flight operations out of MRI is the only way to transport people and cargo to many interior locations.

“In the Beginning…”  Established in 1930  Anchorage had 4,000 residents  Moved from the Delaney Park Strip to its current location  In 1932, renamed from “Aviation Field” to “Merrill Field” in memory of Russell Hyde Merrill  Mr. Merrill died in an airplane crash in Cook Inlet in September 1929.  Pioneered the first air routes to the Kuskokwim region. Courtesy: Anchorage Museum of History and Art

“In the Beginning…” Merrill Field Landfill  Unsupervised dump until 1952  Opened by the City as a controlled landfill in 1952 Courtesy: Anchorage Museum of History and Art

MRI Today • MRI Land Area = 436 acres • Three Runways = 07/25; 16/34; 05/23 •Taxiways=19 • Apron = 102 Acres • Longest Runway = 4,000 feet • Physical plant includes RWY, TWY, Aprons, Roadways, Utilities, Equipment & Buildings = $49M • MRI maintains 3 miles of roadway and 6 miles of storm drain Assets Over the Landfill: Roads: 5,650 LF Taxiways;: 7,150 LF Aprons: 55 Acres Gravel-Ski Runway

MRI Today

MRI Operations  Alaska’s first official airport  1 registered pilot for every 58 residents in Alaska  41 percent of the state’s population lives in Anchorage  Merrill Field is an integral part of Alaska’s transportation network

MRI Operations  MRI is classified as a Non-Hub Primary Airport  More than 10,000 enplanements but less than 0.05% of the U.S. total.  Serves as General Aviation Reliever to Anchorage International.

MRI Operations  MRI Total Operations in 2018  Ranked 86th busiest out of 520 US airports w/ 151,400 annual operations.  Ranked 46th busiest out of all General Aviation (GA) non-hub airports w/ 151,400 annual operations.  Ranked 45th busiest out of 520 US airports w/ 67,453 annual touch-n-go operations. Note: A reflection of high volume flight training operations.

MRI Operations  MRI Operations-Busiest month (July) in 2018  Ranked 49th busiest out of 520 US airports w/ 20,103 annual operations.  Ranked 20th busiest out of all General Aviation (GA) non-hub airports w/ 20,103 annual operations.  Ranked 33rd busiest out of 520 US airports w/ 7,980 annual touch-n-go operations. Note: A reflection of high volume flight training operations.

MRI Operations  Statewide 2018 annual airport operations  Ted Stevens-275,189  Merrill Field-151,400  Fairbanks-112,071  Juneau-106,823  Bethel-84,169  Kenai-44,383  Kodiak-34,822  King Salmon-27,811 Note: MRI has ~ 20% of all flight operation within the state

MRI Operations  Ranked 1 st in “based” aircraft in Alaska  Merrill Field: 900 aircraft  Lake Hood: 781  Fairbanks: 480  Ted Stevens IAP: 150  ~10% of the aircraft within the State are based at MRI

MRI Operations  Does not fall under FAR Part 139 Rules, i.e., “Certification and Operation: Land Airports serving certain carriers.”  Does not have scheduled FAR Part 121 air carrier operations.  Does not have the security requirements of a certificated airport.

MRI Fiscal  48 Long Term ground leases which support approximately 50 aviation related businesses on the airport.  2,800,000 square feet of leasable land  Improvements & maintenance on the lease lots, including the buildings, are leaseholder responsibility.

MRI Fiscal  85,000 sq. ft. of rentable building space for property management.  The rate for leased ground is ~$0.212 per square foot

MRI Fiscal  There are 7 aviation fuel vendors located on the airport.  Fuel vendors pay a fuel tax of $0.08 per gallon to the airport.  Combined sales of $750K to $800K of avgas sold annually.

MRI Fiscal  There are ~ 900 aircraft based on Merrill Field  The airport leaseholders have ~500 aircraft on their lots  The airport manages another ~400 aircraft through individual parking permits

MRI Fiscal  Tie down aircraft parking fees:  Tail-in $60 per month  Drive Thru-$70 per month  Electrical tail-in $75 per month  Electrical Drive Thru-$85 per month

MRI Fiscal  Main Revenue Sources:  Lease Fees & Property Rentals – 65%  Aircraft & Vehicle Parking Fees – 25%  Aircraft Fuel Flowage Fees – 10%

MRI Fiscal  Primary Expenditures:  Labor Costs – 60%  Utilities Charges – 15%  Depreciation (Non-Contributed) – 10%  Intergovernmental Charges – 10%  Fuel & Supplies – 5%

MRI Airport Improvement  MRI Capital budget has been approximately $2M to $4M per year.  Sourced by federal grants through the FAA’s Airport Improvement Program (AIP).  FAA – 93.25% (was 95%)  MRI Match– 6.75% (was 5% w/state picking up 2.5%)

MRI Airport Improvement  MRI had no debt service between 1989 and 2017.  However, in 2015, the FAA began offering large infrastructure investments in MRI that required ever increasing matching funds.

MRI Airport Improvement  2011-$3.96M/ MOA Match $104K  2012-$3.99M/ MOA Match $133K  2013-$1.9M/ MOA Match $65K  2014-$1.6M/ MOA Match $46K  2015-$6.57M/ MOA Match $187K  2016-$8.15M/ MOA Match $438K  2017-$10.8M/ MOA Match $575K  2018-$12.3M/ MOA Match $670K

MRI Airport Improvement  Capital Improvements including dynamic compaction.  2011- Sweeper/vacuum truck, rehab TWY Q phase 2, & security/lighting upgrade.  2012-Twy Q and Apron phase 3, and security improvements phase 2  2013-Snowblower and runway lighting vault  2014-Master plan phase 2 and Twy Q phase 4

MRI Airport Improvement  Capital Improvements continued  2015-security improvements phase 3 and City Electric property acquisition  2016-Twy Q phase 5 & Rwy 5/23 lighting  2017-Secuity phase 4, Txy Q phase 6  2018-Txy Q phase 7 and rehab Txy G

MRI Airport Improvement  Capital Improvements for 2019 (matching funds permitting)  Twy C south GA apron, lighting, & signage  Safety and security equipment  Snow removal equipment, i.e., motor grader and dump truck  RIMP (Runway Incursion Mitigation Program) issues & ALP update

MRI Airport Improvement  AIP for 2019-Continued (matching funds permitting)  Sandoval property demolition  Acquire land for development  Merrill Field Drive airport access road repair.  If FAA provides 100% funding w/ no Match.  This project represents $15M upgrade.

Airport Management  Workforce – 9 full-time employees responsible for:  Airport Development  Management Services  Finance  Leasing of Airport Property, to include cultivating new lease agreements

Airport Management  Workforce – (continued)  Airport Maintenance  Personnel  Public Relations  Meets with the surrounding neighborhood Community Councils  Responds to aircraft noise complaints

Airport Management  Controls the Airport’s Operating and Capital Budgets  Operating costs are the day-to-day expenses  Capital costs are for construction of R/Ws, T/Ws, Aprons, & Equipment, etc.

Airport Management  Plans for and Implements Airport Development  Compiles Airport Master Plan – 20 year planning document approved by FAA  Coordinates Airport Improvement Projects which include:  Obtaining federal grant funding  Contracting for design services and construction

Airport Management  Airport Security  Works with the FAA and local communities to keep the airport safe and secure  Installs and maintains airport fencing and gates  Airport Maintenance includes-  Snow removal  Pavement crack sealing  Mowing the grass

MRI-Part of MOA  In the Municipality of Anchorage •Legislative power is vested in the Municipal Assembly • Comprised of 11 members representing the municipality from Girdwood to Eagle River. •Executive and administrative power vested in the Mayor.

MRI-Part of MOA  Rules and Regulations for the management of MRI are provided by Anchorage Municipal Code as approved by Assembly Ordinance  Also guided by FAA regulations and the laws of the State of Alaska.

MRI-Part of MOA  Mayor appoints the Merrill Field Airport Manager  Mayor also appoints Municipal Airport Commission (MAAAC) which is comprised of 7 members  All Mayoral appointments are subject to confirmation by the Municipal Assembly

MRI-Part of MOA  Rules & Regulations for the Management of Merrill Field are stated in the Anchorage Municipal Code as approved by Assembly Ordinance.  All mandatory airport fees and charges are codified.  Requirements for leasing of airport land is codified.