BKV BC Report (Final).pdf

8/14/2019 BKV BC Report (Final).pdf

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TECHNICAL REPORT

AIR TRAFFIC CONTROL TOWER

PRELIMINARY BENEFIT/COST ANALYSIS (2008)

Hernando County Airport

Brooksville, Florida

prepared for:

Hernando County, Florida

January 2008

prepared by:

uadrex Associates, Inc. irport Development Services


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i

TABLE OF CONTENTS

I INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. AIRCRAFT ACTIVITY SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

III. AIRCRAFT ACTIVITY FORECASTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

IV. ATCT BENEFIT/COST RATIO ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

A. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

B. Critical Values and Other FAA Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

C. Base Case Scenario Benefit/Cost Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

D. Alternate Case Scenario Benefit/Cost Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

E. Break-Even Scenario Benefit/Cost Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

V. CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

APPENDIX A Supporting Documentation

APPENDIX B Detailed B/C Calculations - Base Case Scenario

APPENDIX C Detailed B/C Calculations - Alternate Case Scenario

APPENDIX D Detailed B/C Calculations - Break-Even Scenario


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ATCT Benefit/Cost Analysis

1 An operation is counted as either an aircraft take-off or landing.

Page 1Hernando County Airport 1/21/08

I. Introduction

Quadrex Associates, Inc., was retained by the Hernando County (FL), to provide professionalplanning services for the development of the Benefit/Cost (B/C) documentation necessary for

establishing the feasibility of a proposed new Air Traffic Control Tower (ATCT) at the HernandoCounty Airport (BKV). This information is intended for determining the potential range for federalparticipation in costs associated with the annual operation of the Control Tower by the FederalAviation Administration (FAA) under the Contract Tower Program (CTP).

The following tasks were incorporated into the study:

1. Review FAAs current (2007) Terminal Area Forecast (TAF)2. Develop pro-forma Benefit/Cost Analysis using FAA data3. Review other site specific data relevant to the B/C analysis (master plan forecasts, based

aircraft, etc.)

4. Develop pro-forma alternative B/C reflecting site-specific data and other sources

The following report narrative presents the findings and recommendations of the study. Thecomments and opinions expressed in this report are those exclusively of Quadrex Associates and donot reflect the position of the Federal Aviation Administration or that of any other federal, state, orlocal agency.

II. Aircraft Activity Summary

Hernando County Airport (BKV) is a general aviation airport located six miles southwest ofBrooksville, Florida. The Airport has two runways, Runway 9/27 which is 7,001 feet long and is

enhanced by a precision instrument landing system (ILS) for approaches to Runway 9 and Runway03/21 which is 5,015 feet long . Figure A illustrates the layout of the Airport. According to arecent aircraft census conducted by airport management, there are currently 168 aircraft based at theAirport. Table 1 provides a breakdown of based aircraft by category. It is noted that the totalaircraft count is somewhat higher than the information on record with the FAA. The census wasconducted to provide the FAA with more current data to update the national airport database. Thisnew information will be used to develop an alternate scenario for the B/C calculations.

As an airport currently without an operational air traffic control tower, aircraft activitycharacteristics (i.e., number of operations1, aircraft mix, etc.) at the airport are not officially countedon a regular basis. Since this information is a fundamental component used for determining the need

and justification (benefit) for air traffic control services, a review of other data sources wasconducted. Normally, without an ATC Tower to keep contemporaneous records of aircraft activity,the airport activity at BKV would be estimated through the preparation of a master plan or airportlayout plan update or from the FAA data developed from periodic inspections of the airport.


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Page 2

Hernando County Airport 1/21/08

Figure

A

EXISTINGF

A

CILITIES

HernandoCou

ntyAirport

QUADREX

ASSOCIATES,INC.

AirportDevelopmentServices


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2 Reference: FAA Terminal Area Forecast, FY 2007-2025

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Hernando County Airport 1/22/08

Table 1Based Aircraft Census


AircraftType

Actual A/CNumber

Percent of TotalAircraft

FAA TAFA/C Data

Single Engine Piston 139 77.6% 130

Multi-engine Piston 12 9.5% 12

Multi-engine Turbine 17 11.5% 3

Helicopter 14 1.3% 7

Other 3 0.0% 4

Total 185 100.0% 156

Source: FAA 2007 Terminal Area Forecast and BKV Airport Management Records

This information is also generally used as input data in the preparation of the FAAs Terminal Area Forecast

(TAF). Tthe FAAs TAF for BVK used a 2006 baseline figure of 77,483 total operations 2. Table

2 presents the breakdown of operations by type of activity as estimated by the FAA.

Table 2Estimated Aircraft Operations (CY 2006)


OperationsType

AnnualOperations

Percent of TotalOperations

Itinerant

Air Carrier 0 0.0%

Air Taxi/Charter 468 0.6%

General Aviation 34,264 44.2%

Military 779 1.0%

Subtotal Itinerant 35,511 45.8%

Local

General Aviation 40,804 52.7%

Military 1,168 1.5%

Subtotal Local 41,972 54.2%

Total 77,483 100.0%

Source: FAA 2007 Terminal Area Forecast (CY 2006 for BKV)


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III. Aircraft Activity Forecasts

Table B-1 in Appendix B presents the FAAs 2007-2025 TAF projections for future activity at BKV.As this table indicates, the FAAs forecast projects only marginal annual growth of approximately1.3 percent for general aviation air traffic activity (including both itinerant and local operations) overthe next 15-year period.

As an alternative to the current TAF, the FAA will consider a master plan forecast that has beenrecently approved (i.e., within the past 2 years). Since the Airport has recently completed a forecastupdate as part of the ongoing Master Plan update, a separate Alternate Case scenario wasdeveloped using the activity forecasts. In addition, the based aircraft data from the Airport MasterPlan Inventory will be used to estimate average aircraft values for the Alternate Case scenario.Table C-1 presents the Master Plan forecast broken down by individual years. It should be notedthat the FAA Airports District Office has reviewed and approved these forecasts as being consistentwith the Terminal Area Forecast (see Appendix A, Supporting Documentation).

Also, military aircraft operations from both the Terminal Area Forecast and the Master Plan Update

appear to be significantly underestimated. The Airport currently is the home of a Florida ArmyNational Guard helicopter unit and supports the training activities of other military units, mostnotably the Coast Guard operating C-130's out of the St. Petersburg Clearwater InternationalAirport. The Airports long runway with an ILS, a DOD fueling contractor on-site, and relativelyuncongested and unpopulated airspace, make BKV an attractive alternative for military flighttraining. It is conservatively estimated that 25 itinerant and 100 local military operations per weekcurrently occur at BKV and no doubt this activity would increase if positive controlled airspace wereestablished at the Airport (See Appendix A, Supporting Documentation). This adjustment in militaryactivity was included in the Alternate Forecast (Table C-1) in place of the Master Plan militaryfigures to represent a reasonable estimate of military training activity is occurring at the Airport.

IV. ATCT Benefit Cost Ratio Analysis

A. GeneralThe FAAs Air Traffic Division administers the funding for the operation of Level 1 VFR air trafficcontrol towers through contract agreements with qualified ATC contractors on a regional basis. ThisContract Tower program has proven to be very effective in significantly reducing the cost ofproviding air traffic control services so that many locations, which would have otherwise seen theirATC services eliminated due to FAA budget constraints, can continue to benefit from the servicesof an Air Traffic Control Tower facility.

The decision process for the funding of the operation of contract tower locations is primarilydetermined by a Benefit/Cost analysis. FAA Report APO 90-7, Establishment and DiscontinuanceCriteria for Air Traffic Control Towers outlines the procedures for calculating Benefit/Cost (B/C)ratios.

Costs are those direct costs associated with the operation of the Control Tower including labor andother expenses. Benefits are measured in terms of lives and property saved by the prevention of


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3It is the FAAs current policy to consider candidate new entrants into the Contract Tower Progam only if their

establishment B/C ratio equals or exceeds 1.0.


midair collisions and other accidents and the savings in flight time by providing controlled airspacearound the Airport. The benefit of the Control Tower must be greater than the cost (benefit/costratio of greater than 1.0) order to qualify for full funding under the FAAs Contract Tower program.

The FAA also manages a separately funded Cost-Sharing program which allows airports currentlyin the Contract Tower Program with B/C ratios under 1.0 to continue to participate in air traffic

control services. This cost-sharing program uses the B/C ratio to determine the pro-rated share ofFAA costs with the balance contributed by the airport sponsor.

B. Critical Values and Other FAA Assumptions

The FAA in the B/C analysis process uses various critical values that represent the generic cost

of specific items and are set by the General Accounting Office (GAO). The critical values for itemsused in the B/C Analysis include:

Table 3

FAA Critical Values & Assumptions

Statistical Life................................................. $ 3,000,000Serious Injury.................................................. 580,700Minor Medical Injury...................................... 42,900GA Travelers Time (per hour)....................... 32.50Other Travelers Time (per hour).................... 28.00Discount Rate (for net present value).............. 7%

Source: FAA Office of Policy and Plans (Base Year 2002)

Generally, FAA policy considers new entrants into the Contract Tower Program initially using theestablishment criteria of APO 90-7 which applies the statistical means for accident risk as aprimary factor in the B/C calculations. Also, for new entrants, projected operations are discountedby 7.5 percent to account for the number of operations that would not be handled by an ATCTfacility open for at least 12 hours daily. The establishment period for new ATC Tower facilitiesentering the Contract Tower Program generally applies to the first one to two years of operation,depending on the point the control tower enters the program since the FAA calculates the B/Cbiennially. All subsequent calculations of the B/C ratio by the FAA after the initial establishmentperiod are conducted using the discontinuance criteria.3

For existing Contract ATC Towers in subsequent years (Years 3-15), the B/C calculation is

conducted using the discontinuance criteria which considers the upper bounds of the statistical riskof accidents. Projected operations are not discounted in the discontinuance scenario since it isassumed that all operations handled by ATC are counted.


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the FAA covering the entire operational costs of the new ATC Tower location. For the AlternateCase (Years 3-15 Discontinuance), Table C-3 shows the value of the ATC Tower benefits

increasing to $8,287,258with a resultant B/C ratio of 1.89and thus, the costs for operating theControl Tower would be eligible for continued full funding by a comfortable margin. Appendix Ccontains the detailed calculations of the benefits from the Alternate Case scenario.

E. Break-Even Scenario Benefit/Cost Analysis

While outside the scope of this analysis, another forecast of aviation activity was developed toillustrate the approximate levels of aircraft activity that would result in a Benefit/Cost ratio equaling1.0 under the establishment criteria and thus allow the Airport to enter into the Contract TowerProgram. Generally, a total of 90,500 annual operations extended over the 15-year period with nogrowth would result in a break-even 1.0 B/C ratio. Table D-1 presents the Break-Even forecast datashowing the level operations that would have to occur in order to reach the 1.0 B/C threshold. TableD-2 presents the detailed B/C calculations.

V. Conclusions and Recommendations

Based on the analysis using the current based aircraft and the forecast of aviation activity from theAirport Master Plan Update, it appears that full funding of ATC services at Hernando CountyAirport under the FAAs Contract Tower Program would be likely once the facility is constructed.If the decision is made to go forward with the development of a new ATC Tower facility, it is

recommended that formal application for entry into the FAAs Contract Tower Program office besubmitted immediately so that the operational cost of the tower facility can be programmed into theFAAs FY 2010 budget.


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APPENDIX

SUPPORTING DOCUMENTATIO


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30 RUNWAY IDENT:31 LENGTH:

32 WIDTH:

33 SURF TYPE-COND:

34 SURF TREATMENT:

35 GROSS WT:

36 (IN THSDS)

37

38

40 EDGE INTENSITY:

42 RWY MARK TYPE-COND:

43 VGSI:

44 THR CROSSING HGT:

45 VISUAL GLIDE ANGLE:

46 CNTRLN-TDZ:

47 RVR-RVV:48 REIL:

49 APCH LIGHTS:

50 FAR 77 CATEGORY:

51 DISPLACED THR:

52 CTLG OBSTN:

53 OBSTN MARKED/LGTD:

54 HGT ABOVE RWY END:

55 DIST FROM RWY END:

56 CNTRLN OFFSET:

57 OBSTN CLNC SLOPE:

58 CLOSE-IN OBSTN:

60 TAKE OFF RUN AVBL (TORA):

61 TAKE OFF DIST AVBL (TODA):

62 ACLT STOP DIST AVBL (ASDA):

63 LNDG DIST AVBL (LDA):

>

>

>

>

>

>

>

>

>

>

>

>

SW

DW

DTW

DDTW

39 PCN:

(>) ARPT MGR PLEASE ADVISE FSS IN ITEM 86 WHEN CHANGES OCCUR TO ITEMS PRECEDED BY >

>

>

>

>

>

>

>

PU10 OWNERSHIP:

11 OWNER:

12 ADDRESS:

13 PHONE NR:

14 MANAGER:

15 ADDRESS:

16 PHONE NR:

17 ATTENDANCE SCHEDULE:

18 AIRPORT USE:

19 ARPT LAT:

20 ARPT LONG:

21 ARPT ELEV:

22 ACREAGE:

23 RIGHT TRAFFIC:

24 NON-COMM LANDING:

25 NPIAS/FED AGREEMENTS:

26 FAR 139 INDEX:

GENERAL

HERNANDO COUNTY

16110 AVIATION LOOP DR

352-754-4061

DON SILVERNELL

16110 AVIATION LOOP DR

BROOKSVILLE, FL 34609

352-754-4061

BROOKSVILLE, FL 34609

28-28-24.9000N ESTIMATED

082-27-19.5000W

76 SURVEYED

2498

NO

NO

NGPRY

PUBLIC

70 FUEL:

SERVICES

71 AIRFRAME RPRS: MAJOR

72 PWR PLANT RPRS: MAJOR

73 BOTTLE OXYGEN: HIGH

74 BULK OXYGEN: HIGH

75 TSNT STORAGE: HGR, TIE

76 OTHER SERVICES:

AVNCS, CHTR, INSTR, RNTL, SALES

80 ARPT BCN:

81 ARPT LGT SKED:

CG

DUSK-DAWN

82 UNICOM: 123.000

83 WIND INDICATOR:

YES84 SEGMENTED CIRCLE:

85 CONTROL TWR: NONE

86 FSS: SAINT PETERSBURG

NO87 FSS ON ARPT:

88 FSS PHONE NR:

89 TOLL FREE NR: 1-800-WX-BRIEF

90 SINGLE ENG:

91 MULTI ENG:

92 JET:

90

8

2

TOTAL:

93 HELICOPTERS:

94 GLIDERS:

95 MILITARY:

96 ULTRA-LIGHT:

5

0

0

3

100 AIR CARRIER:

102 AIR TAXI:

103 G A LOCAL:

104 G A ITNRNT:

105 MILITARY:

TOTAL:

500

300

26,200

22,000YES-L

100

49,000

0

>

>

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>

>

>

>

>

>

>

>

>

>

>

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OPERATIONS FOR 12

MONTHS ENDING

>

100LL A

11/07/2001

FACILITIES

BASED AIRCRAFT

OPERATIONS

RUNWAY DATA

LIGHTING/APCH AIDS

OBSTRUCTION DATA

DECLARED DISTANCES

>

>

>

>

>

>

>

111 INSPECTOR: S( ) 11/07/2001112 LAST INSP: 113 LAST INFO REQ:

ALL ALL 0700-1800

03/215,015

150

CONC-G

50.0

75.0

135.0

MED

NPI - G NPI - G/

/

/

/

- / -

-/- /

/

A(V) A(NP)/

/

TREES TREES/

/

44 50/

2,150 1,900/

0B 0B/

44:1 34:1/

N N/

/

/

/

/

09/277,002

150

CONC-G

90.0

130.0

230.0

MED

PIR - G NPI - G/

P4L P4L/

/

/

- / -

-/-/

MALSR /

PIR C/

/

TREES/

/

55/

2,400/

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50:1 40:1/

N N/

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110 REMARKS:>

A 014 ARPT ADMINISTRATOR.

A 081 MIRL RYS 03/21 & 09/27 PRESET LOW INTST DUSK-2200, TO INCR INTST AND ACTVT AFTER 2200 - CTAF. ACTVT PAPI RYS 09 & 27 - CTAF.

AIRPORT MASTER RECORDForm Approved OMB 2120-0015

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

PRINT DATE:

12/20/2007AFD EFF

03083.*A

HERNANDO COUNTY

BROOKSVILLE FL

HERNANDO FL

1 ASSOC CITY:

2 AIRPORT NAME:

3 CBD TO AIRPORT (NM):

4 STATE:

7 SECT AERO CHT:

FAA SITE NR:

5 COUNTY:

JACKSONVILLE

LOC ID:>

>

6 REGION/ADO: ASO/ORL

BKV

06 SW

01/21/2008

FAA Form 5010-1 (5-91) SUPERSEDES PREVIOUS EDITION


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FAA Terminal Area Forecast: National Forecast 2007 (1) Airport Operations

LOCID: BKV HERNANDO COUNTY

Year F Itn Air Carrier Itn Air Taxi Itn GA Itn Mil Local GA Local Mil Total Airport Ops

2002 0 300 22,000 500 26,200 0 49,000

2003 0 300 21,500 500 25,500 0 47,800

2004 0 450 32,770 740 38,269 740 72,969

2005 0 461 33,843 769 40,304 1,154 76,531

2006 0 468 34,264 779 40,804 1,168 77,483

2007 * 0 474 34,689 500 41,310 750 77,723

2008 * 0 480 35,119 500 41,822 750 78,671

2009 * 0 486 35,554 500 42,341 750 79,631

2010 * 0 492 35,995 500 42,866 750 80,603

2011 * 0 498 36,442 500 43,397 750 81,587

2012 * 0 504 36,894 500 43,935 750 82,583

2013 * 0 510 37,351 500 44,480 750 83,591

2014 * 0 516 37,814 500 45,032 750 84,612

2015 * 0 523 38,283 500 45,590 750 85,646

2016 * 0 529 38,758 500 46,156 750 86,693

2017 * 0 536 39,238 500 46,728 750 87,752

2018 * 0 543 39,725 500 47,307 750 88,825

2019 * 0 549 40,218 500 47,894 750 89,911

2020 * 0 556 40,716 500 48,488 750 91,010

2021 * 0 563 41,221 500 49,089 750 92,123

2022 * 0 570 41,732 500 49,698 750 93,250

2023 * 0 577 42,250 500 50,314 750 94,391

2024 * 0 584 42,774 500 50,938 750 95,546

2025 * 0 591 43,304 500 51,570 750 96,715

Report created 1/21/2008 14:59


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FAA Terminal Area Forecast: National Forecast 2007 (1) Based Ai rcraft

LOCID: BKV HERNANDO COUNTY

Year F Single Jet Multi Helicopter Other Total

2002 90 2 8 5 3 108

2003 90 2 8 5 3 108

2004 134 3 12 7 0 156

2005 90 2 8 5 3 108

2006 130 3 12 7 4 156

2007 * 130 3 12 7 4 156

2008 * 131 3 12 7 4 157

2009 * 131 4 12 8 4 159

2010 * 132 4 12 8 4 160

2011 * 132 4 12 8 5 161

2012 * 132 4 12 8 5 161

2013 * 133 4 12 9 5 163

2014 * 133 5 12 9 5 164

2015 * 134 5 12 9 5 165

2016 * 134 5 12 10 5 166

2017 * 134 5 12 10 5 166

2018 * 135 6 12 10 6 169

2019 * 135 6 12 10 6 169

2020 * 136 6 12 11 6 171

2021 * 136 7 12 11 6 172

2022 * 136 7 12 11 6 172

2023 * 137 7 12 12 6 174

2024 * 137 8 12 12 7 176

2025 * 138 8 12 13 7 178

Report created 1/21/2008 15:00


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What are the methods?


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APPENDIX

BASE CASE SCENARI


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APPENDIX

ALTERNATE CASE SCENARI


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TABLEC-1

MASTER

PLAN

FORECASTUPDATE

AirTrafficControlTowerBenefit/CostAn

alysis

HernandoCountyAirport

Forecast

Air

AirTaxi&

GA

Military

Total

GA

Military

Total

Total

Year

Carrier

Charter

Itinerant

Itinerant[1]

Itinerant

Local

Local[1]

Local

Operations

2006

-

478

34,937

1,625

37,040

40,496

4,875

45

,371

82,410

2007

-

485

35,679

1,625

37,789

41,353

4,875

46

,228

84,018

2008

-

493

36,422

1,625

38,539

42,211

4,875

47

,086

85,625

2009

-

500

37,164

1,625

39,289

43,068

4,875

47

,943

87,232

2010

-

507

37,647

1,625

39,780

43,629

4,875

48

,504

88,284

2011

-

515

38,130

1,625

40,270

44,190

4,875

49

,065

89,335

2012

-

522

38,614

1,625

40,761

44,751

4,875

49

,626

90,387

2013

-

530

39,097

1,625

41,251

45,312

4,875

50

,187

91,438

2014

-

537

39,580

1,625

41,742

45,873

4,875

50

,748

92,490

2015

-

544

40,095

1,625

42,265

46,471

4,875

51

,346

93,610

2016

-

552

40,610

1,625

42,787

47,068

4,875

51

,943

94,730

2017

-

559

41,126

1,625

43,310

47,666

4,875

52

,541

95,851

2018

-

567

41,641

1,625

43,832

48,263

4,875

53

,138

96,971

2019

-

574

42,156

1,625

44,355

48,861

4,875

53

,736

98,091

2020

-

582

42,705

1,625

44,912

49,498

4,875

54

,373

99,285

2021

-

589

43,254

1,625

45,469

50,135

4,875

55

,010

100,478

2022

-

597

43,804

1,625

46,025

50,771

4,875

55

,646

101,672

Notes:

[1]Assumes6,500annualmiltaryoperations(split25

%itinerant/75%local)

Source:

BKVAirportMaste

rPlanUpdate,2006

01/21/08


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APPENDIX

BREAK EVEN SCENARI


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Documents

BKV BC Report (Final).pdf