Cuyahoga County Airportpublicworks.cuyahogacounty.us/pdf_publicworks/en-US/CC-AirportO... · Cuyahoga County Airport ... All of the jet operators desire a longer runway. Some operators

Cuyahoga County AirportOperational Review

Final Technical Report

Prepared for:

Cuyahoga County, OhioDepartment of Public Works

Prepared by:

R.A. Wiedemann & Associates, Inc.

P.O. Box 621 ! Georgetown, KY 40324 (502) 535-6570 ! FAX (502) 535-5314

in Association with

Cuyahoga County Airport Operational Review October 2013

R.A. Wiedemann & Associates, Inc. in association with Baker E-1

Executive Summary

HE OPERATIONAL REVIEW FOR CUYAHOGA COUNTY AIRPORT resulted in a number of findings and recommendations for the County to consider. A summary of these recommendations was compiled and incorporates the following topics:

• Survey of Airport Tenants • Airport Lease Policy Recommendations • Airport Staffing Analysis • Financial Policy Recommendations

1. SURVEY OF AIRPORT TENANTS

HERE WERE COMMON THEMES AMONG THE RESPONSES given by tenants regarding Airport operational improvements. These came mostly in the form of requests for additional facilities and services. It should be noted that many indicated high marks for the County

in their provision of snow removal services. Respondents also appreciated the fact that the County was undertaking this survey as an expression of interest of their concerns. The following subsections summarize the responses. 1.1 Airport Tenants A summary of recommendations from Airport tenants included:

1. Airport Manager: A number of corporate tenants desire the presence of an on-site airport manager. They like the Department of Public Works manager, but believe that specialized knowledge of airport compliance, NOTAM filing, and other aviation industry practices is needed. Better lines of communication between the County and tenants were also requested. This would require providing tenants clearly defined names, telephone numbers and email addresses in a proactive "business friendly" manner. They need to know who to contact during and after hours, during inclement weather, etc.

2. Airport Facilities: All of the jet operators desire a longer runway. Some operators requested a resurfacing of the existing runway in the interim. A majority of operators requested Instrument Landing System on both runway ends. A precision approach with lower minimums would mean trimming obstructions (mostly trees). Also, an AWOS was requested by most operators.

3. Airport Services: The most important service to the jet operators is the Air Traffic Control Tower. Loss of the Tower would create an exodus from the Airport. In addition, ARFF, ATIS, and U.S. Customs Service were often-requested services. Better communication between the County and aircraft operators is needed to learn of snow removal plans or other issues occurring on the field in real time via the Airport website, social media, and texting if possible. Email and faxes do not reach pilots in the air. ATIS

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would help to relieve this problem. An improved (and frequently updated) Airport website was also suggested.

4. Lease Agreements: Most of the requests for changes in lease agreements were not favorable to the County. However, some commented on the need for uniformity, consistency, and standardization.

5. Potential Tower Closure: A potential closure of the Control Tower would dramatically reduce the number of corporate based aircraft and jet operations at the Airport. This could reduce income for the Airport by a significant amount.

6. Tower Hours of Operation and Noise Curfew: A number of operators expressed difficulties presented by the current Tower operations hours of 7:00 am to 11:00 pm. A significant number of their flights require departures between 6:00 am and 7:00 am, and arrivals between 11:00 pm and midnight.

7. Improved Community Relations: Several operators suggested that a more aggressive public information/marketing effort would be beneficial, especially with residents in close proximity to the Airport. They believe that if neighbors actually had a better understanding of what goes on at the Airport, the jobs produced, the revenues generated, the sincere efforts to mediate noise, the need to trim trees for the safety of everyone, that perhaps there would be less resistance to the changes that are necessary.

8. Appreciation: Several operators specifically mentioned their appreciation of the County in performing this review and seeking their opinions.

1.2 Tower Manager Recommendations In the opinion of the Tower Manager, a list of items that would most benefit CGF would include:

1. AWOS (Automated Weather Observing System): Currently, all pilots must check with the Tower for weather information on and around the Airport. However, the Tower is not open 24/7 and any pilots planning arrivals during periods the tower is unstaffed do not have access to current, accurate weather information. CGF may be one of only two "towered" airports in the nation without AWOS.

2. Improvements to the ILS (Instrument Landing System): Currently, CGF only has one "front course" ILS approach on the Runway 24 end. Runway 6 is merely a reflection of the signal from the 24 end. This is known as a "back course" ILS, and is an antiquated "work around" in situations where unique signals from each runway end are not available. The FAA recently altered the obstruction free area around the Airport, but did not remove the obstructions in those areas. This meant the approach on Runway 6 no longer met standards. The FAA chose to NOTAM the back course ILS signal on Runway 6 out of service. A front course ILS on Runway 6 would make great sense and would add convenience and safety, especially for corporate aviators.



3. Reducing Approach Minimums: It is essential that the Airport do everything possible to reduce the approach minimums (minimum descent altitude or MDA) currently in place. This the lowest altitude to which descent is authorized on final approach. An aircraft must not descend below the MDA until visual reference is obtained to then follow through with landing procedures. In times of inclement weather, especially snow and fog, the lower the minimums, the safer and more convenient for pilots. In times of clear weather, or on airports with long runways, a higher minimum is not as much a concern. For a heavily laden jet landing at an airport with a 5,100 foot runway, this can present a challenge, even in good weather conditions. The front course precision minimum on Runway 24 is currently 400 feet. This is double the standard minimum of 200 feet. The back course minimum on Runway 6 is 600 feet, triple the standard of 200 feet. Lake effect weather makes navigating even more difficult for pilots. It may require exercising eminent domain or other legal leverage, but trees need to be trimmed to reduce the minimums for pilot safety.

4. ARFF (Airport Rescue and Fire Fighting): ARFF is essential to corporate aviators, fractional jet operators, and FAR Part 139 operations. While Part 139 applies primarily to air carrier passenger operations, the safety standards provide enhanced benefits for corporate and charter operations. Insurance companies covering any of the larger corporate operators on the airfield certainly desire ARFF services for their clients.

5. MARCS (Multi-Agency Radio Communications System): MARCS is the system used in emergency vehicles, life flight helicopters, and hospitals, statewide. Until recently, the ATC on the Airport operated at a radio frequency accessible to emergency responders locally. This has changed and it is essential that the tower have a MARCS unit available for use in times of emergency.

6. ATIS (Automatic Terminal Information Service): ATIS is a continuous broadcast of recorded non-control aeronautical information. ATIS broadcasts a recording that contains essential information, such as weather information, runway information, available approaches, important NOTAMs, and any other information required by the pilots. Pilots have access to ATIS broadcasts at all hours.

1.3 Fire Station Summary and Recommendations A summary of the three fire station combined recommendations includes the following:

1. Airport Access: The primary way to improve response times is to improve actual access "through-the-fence" onto the airfield. Therefore, it is recommended that the County examine the possibility of adding Opticom triggered electronic gates at the three primary access points for the three fire departments. If it is not feasible financially to improve all three gates at one time, it is recommended that at the very least the gate accessible to the nearest fire station be augmented with an Opticom system so that they may reach an emergency scene on the airfield in the shortest time possible, permitting the other two



stations to respond as they are able to enter the airfield. Ultimately, the County should plan to install three automated Opticom triggered gates.

2. ARFF Training: There is strong need for local crews trained in "structural" firefighting to also have ARFF training. Therefore, the County/Airport Management should investigate options for providing an ARFF training program for local firefighting crews - ideally on a local basis. In addition to this, the County/Airport Management should also seek to integrate local firefighting crews in more specialized jet aircraft rescue procedures with one or more of the jet aircraft businesses on the field.

3. Foam and Water: Should an aircraft incident occur, ready access to additional foam and water sources will be vital. It is therefore recommended that the County/Airport Management look into providing a clearly identified foam storage unit on the Airport. There are no water sources available on the airfield. In an emergency, seconds count. It is therefore recommended that special markings and/or markers be installed along the length of the taxiway and in corresponding locations along the fence line to indicate the hydrants most readily accessible to the airfield and runway. It is further recommended that small manually accessible gates be installed along the fence line which will permit firefighters a direct line of access to hydrants outside the fence. These gates need not be large - just big enough for individual firefighters to run hose lines to the nearest hydrants.

4. Larger Equipment: The Airport staff is limited in terms of equipment and resources. While a light truck with 500 pounds of Purple-K is better than nothing, the Airport has lost its Part 139 rating which has benefits for many corporate flight departments, and is vital to fractional operators like Flight Options. It is recommended that the County/Airport Management reconsider providing upgraded ARFF equipment and personnel on the field.

5. Cross Training: All fire departments recommended that Airport staff responsible for responding to fires take part in cross training for structural firefighting with the local departments.

6. Tower Communications: The Control Tower is responsible to all ground traffic on the airfield. The Tower is not currently equipped with a MARCS radio capable of direct communications with emergency responders and area hospitals. It is strongly recommended that a MARCS unit be provided to the Tower as soon as possible.

7. Updated Emergency Operations Plan: All Fire Chiefs were disappointed that the most recent version of the Airport Emergency Operations Plan is substantially out of date. It is very strongly recommended that the Emergency Operations Plan be thoroughly revised to include all the changes that have occurred or been implemented in the past decade.



2. AIRPORT LEASE POLICY RECOMMENDATIONS

SUMMARY OF THE LEASE POLICY RECOMMENDATIONS has been compiled in this section. The recommendations cover a wide range of aviation-related leasehold issues, including developmental needs, regulatory standards, and financial considerations at Cuyahoga

County Airport. Standardization of the leasehold policy would require all leasehold agreements to eventually be subject to the same leasehold policy. Certain lease sections and elements should be added to the existing leases that do not address all the pertinent areas concerning aviation-related leasehold agreements. Observations from the lease policy recommendations can be summarized as follows:

• Lease Standardization: Lease standardization is needed at the Airport. It is important that all leases reflect a cohesive standard that binds all tenants to adhere to the same requirements. This, in turn, helps to ensure that no unfair competitive advantages will inadvertently be given to one tenant over another. A standard leasehold agreement at the Airport should be made up of the following elements:

- Lease Term - Term Extension Options - Use of Premises - Operation & Maintenance - Construction of Improvements - Reversion Clause - Lessor Rights, Reservations, and Obligations - Lessee Rights, Reservations, and Obligations - Security Requirements - Taxes and Fees - Liens - Defaults - Lease Rate - Escalation Clause - Assignments and Subletting - Regulatory Compliance - Hold Harmless Provision - Nondiscrimination - Damage to Facilities - Insurance/Indemnification - Environmental - Living Clauses - Force Majeure - Holdover

• Investment and Lease Terms: Ground lease terms for tenants should be directly

proportional to the amount of investment a tenant makes in the property. Typically, the key consideration for establishing a lease term is the ability of the tenant to fully amortize their investment over the course of that term. Utilizing the recommended matrix of investment requirements and lease terms, a $10 million dollar investment would yield the

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longest lease term (including extensions) of 40 years, while an investment of $500 thousand should only need a 20 year lease term (including extensions) to fully amortize that investment.

• Reversion Clauses: Reversion clauses should be specified in each lease that all

permanent improvements shall revert back to the Airport upon termination of a lease, while smaller items such as signs, racks, and conveyors will not.

• Security Provisions: A majority of the current leasehold agreements do not have a

security requirements section. While the Airport does have security requirements in Airport Rules and Regulations that outline the security requirements dictated by the TSA and Homeland Security, it is important that each lease agreement reference these directly.

• Insurance: To protect both the Airport and the tenant, a Certificate of Insurance will be required to be presented annually to airport management. In the event of the cancellation of insurance, it is also recommended that the tenant notify the airport within a specific timeframe. The insurance obligations of each tenant should include the following coverage:

- Property: The coverage should be equal to the full replacement value. - Commercial General Liability: This coverage should include bodily injury. - Auto: This coverage should vary depending on ramp access. - Employer Liability: This coverage should include worker's compensation. - Fire: This coverage should be equal to the full replacement value.

• Implementing Lease Conformity: There should be a concerted effort of the part of the

County to bring all current leasehold agreements into conformance with the recommended set of established standards that cover all basic aviation lease clauses in each leasehold agreement. In order to do this, the Airport will need to utilize one of the following methods:

- Renegotiation of Lease Terms: This could be initiated by either the tenant or the Airport, seeking to add an amendment to the current lease. If the Airport is initiating the renegotiation, an incentive (such as an added lease extension) will need to be offered to the tenant in exchange for adhering to the new lease policy.

- Assignment or Subletting of Current Lease: A tenant cannot assign or sublet the lease terms without the express approval of the Airport, which gives Cuyahoga County Airport the opportunity to update the lease terms to the new airport lease policy.

- Default of Current Lease: If a tenant does not adhere to the obligations of their specific leasehold agreement, either through non-payment of rent or violations of the Airport's Rules and Regulations, the Airport can institute the standard leasing policy for future agreements.

- Airport Buy Out: Under the worst case scenario, the Airport could offer to compensate a tenant financially in order to abolish certain leasehold agreements that do not conform to the Airport's established leasing policy.



• Application of Minimum Standards: Lease policy should consider the “required services” sections of a typical lease. For aeronautical activities, the Airport has Minimum Standards for Aeronautical Activities that cover regulatory considerations. Each leasehold agreement should reference the Airport Minimum Standards as a method of "leveling the playing field" for all aeronautical tenants. This method prevents the Airport from requiring each tenant to adhere to different standards, and minimizes the chances of inadvertently offering an unfair advantage to one tenant over another.

• Recommended Rates & Charges: It is important that the rates and charges at the Airport

reflect the fair market value of property in Cuyahoga County. It is important to note that forces of supply and demand will be the final deciding factor when negotiating lease rates, and that not all Airport property is equally valuable. However, it is possible to establish an average market baseline that should be referenced. For hangar rates, fuel flowage fees, and landing fees, the competitive market rates at surrounding airports should be used to establish fair rates. Given the average market values at the Airport, the new rates and charges have been estimated as follows:

- Conventional Hangar Rental Rates: $4.61/Sq Ft - Ground Lease Rates (Improved or Accessible Land): $0.23/Sq Ft - Ground Lease Rates (Unimproved or Poorly Accessible Land): $0.184/Sq Ft - Average Office Space Lease Rates: $15.42/Sq Ft - Fuel Flow Fee: $0.07/gal to $0.10. - Landing Fees: No recommended changes from the landing fee schedule shown in

Appendix 1-B - T-Hangar Rental Rates: $200/month, increasing to $225/month within 5 years.

• Airport-wide Fuel Flowage Fee: An Airport-wide fuel flowage fee should be set and

adjusted by the Cuyahoga County Council, and that is not built into leases with Airport tenants. The current system makes it difficult to change or adjust rates, and without uniformity there exists opportunities for one Airport tenant to have an unfair advantage over another. By establishing the fuel flowage fees separately from the individual Airport leases, collection of the fuel flowage fee would be collected from the fuel supplier, rather than from the Airport tenants.

• Escalation Rate: To compensate for inflation, rent escalation clauses should be tied to a

Consumer Price Index or 2.5% (whichever number is higher). As an Airport standard, this escalation of rental amounts should be effective annually for each tenant.

3. AIRPORT STAFFING ANALYSIS

NE CAVEAT THAT SHOULD BE STATED IS that every airport is different and operating conditions can influence the need for labor. Generalizations concerning other airport operating characteristics may or may not apply, given the market and airport clientele.

For example, Cuyahoga County Airport has high-end clientele (Flight Options, Eaton, Progressive, etc.) that require access, regardless of the weather. The decision to keep runways operational during heavy snow conditions will impact the cost of operation relative to airports

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that do not choose to continuously plow their airport operations areas. That being said, there are a number of observations that can be made from the data:

• Labor and overhead costs at Cuyahoga County Airport have made up 75 percent of the costs of operating the facility since 2008.

• In our experience, these costs are typically between 40 and 60 percent of operating costs at general aviation airports.

• The average cost per worker is higher at Cuyahoga County Airport than at the other 10 sample airports.

• Except for costs, Cuyahoga County Airport appears to have favorable employee metrics when compared to the other 10 sample airports.

• When Burke Lakefront is removed from the data averages, Cuyahoga County Airport has significantly more unfavorable employee metrics - more employees per based aircraft, per acre, and per linear foot of runway length.

• Snow removal appears to have a direct relationship to the number of employees needed (more so than fueling).

Using the metrics from the analysis, it can be shown that without Burke Lakefront included, Cuyahoga County Airport should have between four and six employees (depending upon the metric used). By acreage, the number of employees would be four (640 acres divided by the average of 156 per employee). By based aircraft, the number of employees would be 10.5 (225 based aircraft divided by 21.33). It is believed that the inclusion of Burke Lakefront in this analysis is inappropriate because of its subsidy from Hopkins International. This subsidy and shared operation makes it difficult to assign costs and labor specifically to Burke Lakefront. From a labor cost perspective, Cuyahoga County Airport is 1.8 times the average cost without Burke Lakefront. If Cuyahoga County costs were equal to the $41,872-per-worker average, total labor costs would have been $376,848 in 2012 (9 employees times $41,872), rather than the actual $689,313. From the data, strategies for reducing labor cost may include the soliciting of third party snow removal services. Airports that contracted snow removal services had roughly four fewer employees than airports which removed snow with their own employees. It is understood that the snow removal function is critical to retaining high-end tenants. Thus, if excellent service from a contractor cannot be assured at a lower price, a decision to keep the service in-house could be readily justified. A final observation involved the possible contracting of the entire maintenance and operation of the Airport to an FBO. Logically, discussions would begin with the current FBO. Economies of scale may result from the cross-utilization of staff at the Cleveland Jet Center. The management of the FBO is open to discussion on this matter.



4. FINANCIAL POLICY RECOMMENDATIONS

HERE ARE A NUMBER OF RECOMMENDATIONS ASSOCIATED with the budget and how the County charges or pays for services at the Airport. These recommendations are discussed by topic in the following subsections.

4.1 Privilege Fees As defined, privilege fees are actually concession surcharges that are charged by the County to tenants that are using the Airport on which to conduct business. The tenants charged these fees are Fixed Base Operators or Specialty Aviation Service Operators. The County's participation in the success of businesses on the Airport is entirely appropriate and is a common practice in the aviation industry. Two companies that pay privilege fees include Nextant Aerospace and Cleveland Jet Center. Lease provisions for increasing privilege fees include the following:

• Nextant Aerospace: During the five (5) year period from January 1, 2003, through

December 31, 2007, the concession privilege fee shall be $70,000 per year. The concession privilege fee shall be increased for each successive five (5) year period during the term of this Lease and all renewals thereof by a percentage equal to' the average percentage change (increase or decrease) in recorded operations (take-offs and/or landings) during each of the five (5) years preceding such five (5) year period. For example, if the average of the percentage change in recorded operations during each of the five (5) years from January 1, 2003 through December 31, 2007 was 11.1 %, then the concession privilege fee for the five (5) year period from January 1, 2008, through December 31,2012 shall be $77,770 The payment of such concession privilege fee shall be made quarterly on the 20th day of the month following the end of each calendar quarter, commencing April 20, 2003, and quarterly thereafter, during each term of this Lease and all renewals thereof.

• Cleveland Jet Center: During the five (5) year period from June 1,2009 through May 31,

2041, the concession privilege fee shall be $77,700 per year. The concession privilege fee shall be increased for each successive five (5) year period during the term of this Lease and all renewals thereof by a percentage equal to the average percentage change (increase or decrease) in recorded operations (take-offs and/or landings) during each of the five (5) years preceding such five (5) year period. For example, if the average of the percentage change in recorded operations during each of the five (5) years from January 1,2007 through December 31,2012 was 11.1%, then the concession privilege fee for the five (5) year period from January 1,2013, through December 31, 2018 shall be $86,247.

Rather than estimate the increase in privilege fees based on activity increases and percentage changes, it is recommended that these changes be based upon a set inflation index. That way, the County is not faced with uncertain levels of revenues if the particular business does not increase its activity during the historical period.

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4.2 Ground Rental Rates Not all Airport property rental rates are equally valuable. Some areas with access to the runway system afford economic opportunities that cannot be reproduced on non-aeronautical parcels, and vice versa. Therefore it is recommended that at least two tiers of ground rental rates be established. The first involves parcels with good ground and airfield access. Those parcels would be valued at $0.23/sf. However, parcels without good internal access or access to the airfield may have a reduced rate, depending upon how much investment will be required to create access infrastructure. For example, if roadways and utilities infrastructure will cost 20 percent of the total development investment, the lease rate could be reduced by 20 percent from $0.23/sf to $0.184/sf. In this manner, allowances for needed infrastructure can be incorporated into the lease structure. 4.3 Labor Costs To reduce the net deficits, either costs must be reduced or revenues must be increased, or both. Mathematically, labor cost is 75 percent of the entire expense budget. As shown in Table 5-3, even with the revenue enhancement options, there is still a net deficit - mostly attributable to labor costs. Thus, if a breakeven position is to be achieved at the Airport, labor expense is likely to be impacted. This study did not perform any analysis of the efficiency of the Airport's work force. Therefore, no assumptions were made relative to the reduction of the labor force and whether or not the Airport could still operate effectively. With incomplete information, it would seem that two potential solutions reduce to either keeping the existing work force or using the FBO to operate the facility. The County may have better information on the work needs and requirements associated with the snow removal and mowing at the Airport and may be in a position to make judgments in that area. Lacking that information, it is recommended that some discussions be held with the existing FBO to determine whether or not a less expensive means of operating the Airport could be achieved. 4.4 Potential Office Space Bonus Rent It does not appear that bonus rent is being charged as specified in lease agreements. The following table presents the amount of bonus rent that could be collected if it were charged. As shown, if all the building office space was rented at the office market space of $15.42 per square foot per year, then the bonus rent (10 percent of rent over $12 per square foot) would be $75,606 dollars. Therefore, it is recommended that bonus rent be collected as specified in lease agreements.



Potential Office Space Building Bonus Rent Office Building Building SF Bonus Rent

Horizon Building 91,160 $31,177 Associates Estates 41,325 $14,133 Curtiss Wright Center I 16,600 $5,677 Curtiss Wright Center II 16,600 $5,677 Curtiss Wright Center III 30,730 $10,510 Curtiss Wright Center IV 24,656 $8,432 TOTALS 221,071 $75,606

Chapter 1: Lease Analysis


R.A. Wiedemann & Associates, Inc. in association with Baker 1-1

Lease Analysis

HIS CHAPTER SUMMARIZES OUR ANALYSIS OF EXISTING lease agreements between Cuyahoga County Airport tenants and the County. Because disputes often arise where ambiguity persists in lease language, leases should be standardized and without a

significant amount of deviation in clauses from lease to lease. It is important to note that this analysis was not performed by an attorney and should not be used in place of legal advice. Before modifications to any existing leases from Cuyahoga County Airport are pursued, these recommendations should be reviewed with and by the County’s legal counsel. This analysis is organized as follows:

• Inventory of Current Lease Agreements • Strategies for Correcting Lease Issues • Appendix 1-A - Local Market Analysis • Appendix 1-B - Landing Fee Schedule

1. INVENTORY OF CURRENT LEASE AGREEMENTS

SUMMARY OF THE CURRENT LEASE AGREEMENTS has been compiled. The description of these leases includes an account of the tenant, parcel, business type, lease term, and rental amounts. A checklist was utilized to verify the use of important sections in

elements in each lease. This checklist does not evaluate the specific conditions of each lease section, but only verifies that it has been used in the lease. A further analysis of these sections will be covered in the Analysis of Lease Elements section. Observations from the inventory of leases can be summarized as follows:

• The Airport has 12 leases currently in force for its various tenants. • Of these leases, 10 are deficient with respect to one or more elements on our checklist. • The most common lease elements not clearly defined or omitted from the current airport

leases were environmental considerations, nondiscrimination, Force Majeure, holdover clauses, and security requirements.

• The average time needed for the lease term and extensions to expire for current leases is 20.5 years, which makes it difficult to change various elements or lease provisions in a timely manner.

• The long lease terms have resulted in complicated leasehold agreements with multiple assignments, subleases, and amendments.

• Lease revenue has averaged 53 percent of operating revenues over the past five years. In 2012, the rate was up to 56 percent.

• Reversion clauses are common to these leases, giving the County needed negotiating power (discussed later).

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Eaton Corporation Hangar

Located On Parcel ID(s) 661-16-008 Legal Description 13-74 Eaton Corp Leased

Primary Owner Board of County Commissioners of Cuyahoga County

Leased to Eaton Corporation Property Use: Aircraft sales and service Total Market Value $1,428,200 2012 Tax $43,455.48 Property Address 26340 Curtis Wright Pkwy Lease Type: Aviation, Commercial Business Type: Corporate Hangar Lease Term Expiration: 5/31/2023 Rent and Charges: Ground Rent: $14,968 (Escalation CPI every 5 years) Hangar Rent: $97,117 (Escalation CPI every 5 years) Min Fuel Flowage Fee: $12,000 ($.07/gal) Description of Premises: 1.9875 acres, 24,640 sq ft hangar, 15,000 gallon tank for Jet A fuel Lease Element Checklist Lease Term √ Lease Rent √



Eaton Corporation Hangar

Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements √ Environmental √ Taxes and Fees √ Living Clauses √ Liens √ Force Majeure X Defaults √ Holdover X Checklist Score: 21/24

Airport Greens Golf Course




Located On Parcel ID(s) 82105001, 82105002, 82105003 Legal Description 2 NWC, 2 SP 563.05FT NP, Primary Owner County of Cuyahoga Leased to Airport Greens Golf Club Property Use: Recreation Total Market Value $111,100.00, $580,900.00, $125,800.00 2012 Tax $4,645.78, $161.55, $224.24

Property Address 28980 White Rd, Willoughby Hills, OH, 44092

Lease Type: Non-Aviation, Commercial Business Type: Golf Course Lease Term Expiration: 12/31/2048 Rent: $62,500/yr (Escalation of $2,500 every 5 years) Or percentage of gross receipts 1% up to $399,999 3% $400,000 to $450,999 5% $451,000 to $500,999 10% $501,000 to $550,999 12% $551,000 and up Premises: 120 Acres Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √




Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements √ Environmental √ Taxes and Fees √ Living Clauses √ Liens √ Force Majeure X Defaults √ Holdover X Checklist Score: 21/24

Lessee: C.C. Hangars, Inc. Assigned to Zomar Group, LTD



Lessee: C.C. Hangars, Inc. Assigned to Zomar Group, LTD

Located On Parcel ID(s) 821-03-003 and 821-03-004 Legal Description LEASE LOT S/L T-2 ALL Primary Owner C. C. Hangars INC. Leased to C. C. Hangars INC. Property Use: Other Commercial Structures Total Market Value $543,000.00, $543,000.00 2012 Tax $15,604.98, $15,604.98

Property Address 5375 Avion Park Drive, Highland Heights, OH, 44143

Lease Type: Aviation, Commercial Business Type: T Hangars Lease Term Expiration: 8/2/2037 Rent: $939/yr per Acre Premises: Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements X Environmental X Taxes and Fees √ Living Clauses √



Lessee: C.C. Hangars, Inc. Assigned to Zomar Group, LTD Liens √ Force Majeure X Defaults √ Holdover X Checklist Score: 19/24

Lessee: Corporate Wings-Cleveland, LLC Subleased to Corporate Wings-CGF, LLC Subleased to Nextant Aerospace, LLC

Located On Parcel ID(s) 661-16-002 Legal Description 74



Lessee: Corporate Wings-Cleveland, LLC Subleased to Corporate Wings-CGF, LLC Subleased to Nextant Aerospace, LLC Parcel Area (sf) 91,040 (sf) Primary Owner Beckett Enterprise INC. Leased to Corporate Wings-Cleveland LLC Property Use: Aircraft Sales and Service Total Market Value $730,100.00 2012 Tax $46,897.38

Property Address 355 Richmond Road, Richmond Heights, Oh, 44143-1420

Lease Type: Aviation, Commercial Business Type: Corporate Hangars Lease Term Expiration: 12/31/2047 Rent and Charges: Ground Rent: $23,539/yr (Escalation 10% in 5 yrs) Operating Privilege: $70,000/yr Fuel Flow Fee: $18,000/yr Terminal Usage Fee: $61,000/yr Hangar Rent (sublease): $360,000/yr Landing Fee: 75% Parking Fee: 75% Premises: 10.0386 Acres Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination √ Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements √ Environmental √ Taxes and Fees √ Living Clauses √ Liens √ Force Majeure √ Defaults √ Holdover √ Checklist Score: 24/24

Lessee: Mercury Holdings, Inc. Assignment to Corporate Wings Services Corp. Assignment to Flight Options, LLC



Lessee: Mercury Holdings, Inc. Assignment to Corporate Wings Services Corp. Assignment to Flight Options, LLC

Located On Parcel ID(s) 661-16-006 Legal Description 13 Primary Owner Mercury Aviation Leased to Flight Options, LLC Property Use: Aircraft Sales and Services Total Market Value $656,300.00 2012 Tax $21,938.44

Property Address 26100 Curtis Wright PKWY, Richmond Heights, 44143

Lease Type: Corporate Hangar Business Type: Aviation, Commercial



Lessee: Mercury Holdings, Inc. Assignment to Corporate Wings Services Corp. Assignment to Flight Options, LLC Lease Term Expiration: 9/30/2037 Rent and Charges: Ground Rent: $32,555/yr (Escalation 10% every 6 yrs) Fixed Annual Fee: $87,000/yr (Esc. +$3,000/yr) Premises: 9.2382 Acres Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements X Environmental X Taxes and Fees √ Living Clauses √ Liens √ Force Majeure X Defaults √ Holdover X Checklist Score: 19/24

Lessee: Canyon Properties, LLC (dba Flight Works) Assignment to The Cleveland Jet Center, LLC



Lessee: Canyon Properties, LLC (dba Flight Works) Assignment to The Cleveland Jet Center, LLC

Located On Parcel ID(s) 661-16-009 Legal Description 74 EST 3.18A Primary Owner CJC Real Estate Enterprises LLC Leased to Cleveland Jet Center Property Use: Aircraft sales and service Total Market Value $2,986,000.00 2012 Tax $45,427.55

Property Address 26380 Curtiss Wright Parkway Cleveland, OH 44143

Lease Type: Aviation, Commercial Business Type: FBO Lease Term Expiration: 5/31/2057 Rent and Charges: Ground Rent: $14,279.34/yr Privilege Fee: $77,000/yr Fuel Flow Fee: $18,000 (Esc. 25% in 10 yrs) Landing Fee: 75% Premises: 3.972 Acres Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination √



Lessee: Canyon Properties, LLC (dba Flight Works) Assignment to The Cleveland Jet Center, LLC Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements √ Environmental √ Taxes and Fees √ Living Clauses √ Liens √ Force Majeure √ Defaults √ Holdover √ Checklist Score: 24/24

Lessee: MBNA Ohio Properties Inc. Assignment to Five Star Aviation, LLC

Located On Parcel ID(s) 821-01-003 Legal Description 11 Primary Owner MBNA Ohio Properties INC. Leased to MBNA Ohio Properties INC.



Lessee: MBNA Ohio Properties Inc. Assignment to Five Star Aviation, LLC Property Use: Aircraft Sales and Service Total Market Value $1,908,500.00 2012 Tax $51,018.36

Property Address 26500 Curtis Wright Parkway, Highland Heights, OH, 44143

Lease Type: Aviation, Commercial Business Type: Corporate Hangar Lease Term Expiration: 8/12/2033 Rent and Charges: Ground Rent: $28,148/yr Fuel Flow Fee: $10,000/yr Apron Fee: $14,000/yr Premises: 4.4679 Acres Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination √ Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements √ Environmental √ Taxes and Fees √ Living Clauses √ Liens √ Force Majeure √ Defaults √ Holdover X Checklist Score: 23/24



Lessee: National City Bank Assigned to Corporate Wings - Cleveland, LLC Subleased to Mauiva, LLC

Located On Parcel ID(s) 821-01-001 Legal Description 1 Primary Owner Diamond Shamrock Corp Leased to National City Bank Property Use: Transportation Facilities Total Market Value $829,600.00 2012 Tax $23,266.32 Property Address 26460 Curtiss Wright Parkway, Highland



Lessee: National City Bank Assigned to Corporate Wings - Cleveland, LLC Subleased to Mauiva, LLC

Heights, OH 44143 Lease Type: Aviation, Commercial Business Type: Corporate Hangar Lease Term Expiration: 8/31/2015 Rent and Charges: Ground Rent: $9,560/yr Fuel Flow Fee: $16,000/yr Premises: 1.9857 Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements √ Environmental X Taxes and Fees √ Living Clauses √ Liens √ Force Majeure √ Defaults √ Holdover X Checklist Score: 21/24



Lessee: Airport Partners, LTD Assigned to Horizon County Airport, LLC Assigned to North Point Leasing Corp.

Located On Parcel ID(s) 661-16-011 Legal Description 74 Primary Owner Horizon County Airport Corp. Leased to North Point Leasing Corp. Property Use: Office Buildings – 3 or more stories (elevator)Total Market Value $4,985100.00 2012 Tax $204,538.05 Property Address 26301 Curtis Wright Parkway, Richmond



Lessee: Airport Partners, LTD Assigned to Horizon County Airport, LLC Assigned to North Point Leasing Corp.

Heights, Oh, 44143 Lease Type: Non-Aviation, Commercial Business Type: Ground Lease Lease Term Expiration: 12/31/2027 Rent: $2,812/acre Premises: Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements X Environmental X Taxes and Fees X Living Clauses √ Liens √ Force Majeure X Defaults √ Holdover X Checklist Score: 18/24



Lessee: Progressive Casualty Insurance Company Subleased to Acme Operating Corporation Assigned to Swaglok

Located On Parcel ID(s) 821-04-004 Legal Description 11 PCL5 Primary Owner Crawford Fitting Co. Leased to Swagelok Property Use: Research and Development Facility Total Market Value $7,591,900.00 2012 Tax $200,762.46

Property Address 318 Bishop Rd., Highland Heights, OH, 44143

Lease Type: Aviation, Commercial



Lessee: Progressive Casualty Insurance Company Subleased to Acme Operating Corporation Assigned to Swaglok Business Type: Corporate Hangar Lease Term Expiration: 9/30/2026 Rent and Charges: Ground Rent: $9,104 (Escalation by fair market appraisal in 2016) Hangar Rent: $66,000 (Escalation 10% every 5 yrs) Premises: 1.6382 Acres Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination √ Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements X Environmental √ Taxes and Fees √ Living Clauses √ Liens √ Force Majeure √ Defaults √ Holdover √ Checklist Score: 23/24

Lessee: Robemil, Inc (dba Milano's Restaurant) Assigned to Fani, LLC



Lessee: Robemil, Inc (dba Milano's Restaurant) Assigned to Fani, LLC

Located On Parcel ID(s) 661-15-005

Legal Description OL 74 159.84 AC ADDITIONAL PARCEL 66115006 2004S/R

Primary Owner County Comm Bd of Leased to Robemil, Inc. Property Use: -- Total Market Value -- 2012 Tax --

Property Address 355 Richmond Rd., Richmond Hts, OH, 44143

Lease Type: Non-Aviation, Commercial Business Type: Restaurant Lease Term Expiration: 8/31/2018 Rent and Charges: Minimum Rent: $18,000/yr Or 7% gross sales under $40,000 Or 5% gross sales over $40,000 Privilege Fee: $600/yr Premises: 3,192 sq. ft. building Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options √ Escalation Clause √ Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause X Nondiscrimination X Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements X Environmental X



Lessee: Robemil, Inc (dba Milano's Restaurant) Assigned to Fani, LLC Taxes and Fees √ Living Clauses √ Liens √ Force Majeure √ Defaults √ Holdover X Checklist Score: 19/24

Lessee: T&G Flying Club

Located On Parcel ID(s) 661-15-005

Legal Description OL 74 159.84 AC ADDITIONAL PARCEL 66115006 2004S/R

Primary Owner County Comm Bd of



Lessee: T&G Flying Club

Leased to T&G Flying Club Property Use: -- Total Market Value $1,994,600 2012 Tax --

Property Address 26300Curtiss Wright Parkway, Richmond Heights, Ohio, 44143

Type: Aviation, Commercial Business Type: Flight Instruction Lease Term Expiration: Rent and Charges: $12,684 Premises: 936 sq. ft. office space Lease Element Checklist Lease Term √ Lease Rent √ Term Extension Options X Escalation Clause X Use of Premises √ Assignments and Subletting √ Operation & Maintenance √ Regulatory Compliance √ Construction of Improvements √ Hold Harmless Provision √ Reversion Clause √ Nondiscrimination √ Lessor Rights, Reservations, and Obligations √ Damage to Facilities √ Lessee Rights, Reservations, and Obligations √ Insurance/Indemnification √ Security Requirements X Environmental √ Taxes and Fees X Living Clauses √ Liens √ Force Majeure X Defaults √ Holdover X Checklist Score: 18/24



2. STRATEGIES FOR CORRECTING LEASE ISSUES

ROPERLY EXECUTED, AN EFFECTIVE LEASEHOLD AGREEMENT PROVIDES a mutually beneficial, long term relationship between a tenant and the Airport. There are a number of lease strategies, best practices, and general areas of advice discussed in this analysis. The individual lease

elements (as outlined in the inventory checklist) will be described in greater detail as recommendations for Airport lease policy, but in general, a number of the key issues considered for this Lease Analysis include such topics as indemnification, minimum standards for aeronautical activities, developmental considerations, airport financial needs, and reversion clauses. A number of lease issues have been identified in previous sections that should be corrected in the future. It is important to note that during lease negotiations a tenant could make additions to these policies to protect their own interests. Such additions should be left up to the discretion of the Airport sponsor, keeping in mind that no lease can give a single tenant an advantage over its on-airport competition, and that exclusive rights are a violation of federal grant assurances. Some of these issues cannot be corrected until the current lease expires. Others may be subject to correction strategies and incentives offered by the County in the near term. This section is organized to include the following topics:

• Lease Policy Standardization • Recommended Lease Structure Modifications • Lease Term Correction Strategies • Reversion Clauses • Insurance Obligations and Indemnification • Minimum Standards for Aeronautical Activities • Recommended Rates and Charges Adjustments

2.1 Lease Policy Standardization First and foremost, a standardization of leasehold policy should be embraced by the County for all Airport leases. This standardization will affect both current and future leasehold agreements, but leases currently in use will take time to gradually update to the new policy. For new leases, there will be clear, uniform sections that will address individual specific tenant needs while remaining consistent with other leases. With a cohesive leasing policy that addresses all the pertinent issues relating to the Airport-tenant relationship, there will be little possibility for misinterpretation with any leasehold issue may arise. The current leasehold agreements in place at Cuyahoga County Airport cover a wide range of issues relevant to aviation leases. While non-aeronautical leases should be customized to address specific issues of each individual tenant, the aviation-related leases should all contain similar elements. Lease policy standards should require the following elements to be included in every Airport lease:

P



Lease Elements for Policy Standardization

• Lease Term • Lease Rate • Term Extension Options • Escalation Clause • Use of Premises • Assignments and Subletting • Operation & Maintenance • Regulatory Compliance • Construction of Improvements • Hold Harmless Provision • Reversion Clause • Nondiscrimination • Lessor Rights, Reservations, and

Obligations • Damage to Facilities

• Lessee Rights, Reservations, and Obligations • Insurance/Indemnification

• Security Requirements • Environmental • Taxes and Fees • Living Clauses • Liens • Force Majeure • Defaults • Holdover

Each of these lease elements is described below, along with the reasons for including them in the lease policy.

• Lease Term: Ground lease terms for tenants should be directly proportional to the amount of investment a tenant makes in the property. In some cases, where the tenant is pledging larger, community-wide impacts such as job creation, some consideration of these benefits might be reflected in the lease. This is true if these impacts/benefits are not addressed by separate agencies involved in State or local incentive packages. This approach helps to ensure that the terms of the lease are mutually beneficial to the Airport and to the tenant.

It is recommended that Cuyahoga County Airport utilize a matrix to establish the investment required to qualify for a specific lease term period. A key consideration for establishing lease terms is the ability of the airport tenant to amortize their investment over the course of the lease term. While larger investments take longer to fully amortize, it is also important to realize that larger commercial ventures should be capable of supporting larger amortization fees per month than smaller ventures. With this in mind, the following matrix is recommended as a starting point for consideration by the County:

Investment Amount

Lease Term + Extension Option

Principal Amortization/Year

Principal Amortization/Month

$500,000 20 year $25,000 $2,083.33 $1,000,000 25 year $40,000 $3,333.33 $2,500,000 30 year $83,333 $6,944.44



Investment Amount

Lease Term + Extension Option

Principal Amortization/Year

Principal Amortization/Month

$5,000,000 35 year $142,857 $11,904.76 $10,000,000 40 year $250,000 $20,833.33

• Term Extension Options: Lease term extensions give added flexibility when determining

the term length of a lease. Typically, a lease extension is 5-10 years in length, and the agreement is subject to the obligations of the initial lease term.

• Use of Premises: This section states what activities can and cannot take place within a

specific lease. Hangar leases will typically limit what can and cannot be stored in a hangar, while an FBO lease will specify what type of business activities are permitted.

• Operation & Maintenance: This section will identify the tenant as the party responsible

for covering the financial expenses involved with operating the leased facility. These costs include maintenance, repairs, grounds upkeep, and utilities.

• Construction of Improvements: This section details the approval process for any repairs, renovations, improvements, and alterations undertaken by Airport tenants. Leases should stipulate that all projects must be submitted to the Airport Architectural Committee for approval, and specify a clear timeline for construction.

• Reversion Clause: A reversion clause addresses what happens to the improvements to the

leasehold upon termination of a lease. It should be specified in each lease that all permanent improvements shall revert back to the Airport upon termination of a lease, while smaller items such as signs, racks, and conveyors will not.

• Lessor Rights, Reservations, and Obligations: This section would cover several important areas that need to be addressed within every lease agreement. Each of the points can be brief, but include the following areas:

- Ingress and Egress: This could include the right to inspect the premises to ensure compliance with the Airport's Rules and Regulations, and the right to show the premises to potential future tenants. The lessee should be provided reasonable notification prior to this.

- Right to Close the Airport: This would include a total Airport closure, or for a specific portion of the Airport (i.e. runway, taxiway, apron, terminal building, and parking area) when reasonably necessary.

• Lessee Rights, Reservations, and Obligations: This section would clearly state several

important tenant rights. These rights should include the following: - Ingress and Egress: The tenant shall have access to the leased property, as well as

any other public area of the Airport.



- Signage: The Airport should stipulate acceptable size and location for tenant advertising.

- Quiet Enjoyment: This should be defined as the possession and unimpaired use of the leasehold without interference.

- Approved Alterations to Improvements: The lessee will not have proposed alterations unreasonably denied approval by the Airport.

• Security Requirements: Leases should reference the Airport Rules and Regulations

outlining the security requirements dictated the TSA and Homeland Security.

• Taxes & Fees: As a public entity, the Airport is exempt from property taxes. Depending on the political and economic climate, the taxes required for commercial entities operating on publicly owned land is subject to change. Therefore, it is important that the lease stipulate that all taxes and fees subject to Airport property be passed through to the tenant.

• Liens: A lien on property must be precluded in the lease agreement.

• Defaults: This section outlines the various actions brought about by the tenant that would

constitute the termination of the lease agreement. Failure to pay rental amounts, non-compliance with the Airport's Rules and Regulations, and illegal activities would constitute a default of the lease. With instances of non-payment on rent, an acceptable timeframe for repayment of owed rent and penalties should be established.

• Lease Rate: A primary consideration for Lease Policy is the financial well being of the Airport. The FAA requires that airports establish fair and reasonable fees, and it is recommended that airports maintain a fee and rental structure that makes or moves the Airport toward self-sustainability. The monthly payment due from the tenant should be based on the fair market value of the leasehold. As previously shown, the current rental rates established at Cuyahoga County involve a combination of ground rent, hangar rent, and fuel flowage fees. This lease section should also outline the timing and acceptable methods of payment for the rent, and stipulate the penalties associated with late payments.

• Escalation Clause: The escalation clause in a lease agreement facilitates an increase in rental rates to compensate for inflation. As a general rule, the escalation for each lease should be tied to a Consumer Price Index or 2.5% (whichever number is higher). The rent escalation should be carried out annually, rather than every five or ten years.

• Assignments & Subletting: This section defines the parameters of a possible transference of the rights and provisions of a specific lease agreement from one tenant to another. Any subletting or assignment agreement should be subject to approval of the Airport, and pass all obligations of the initial lease to the new tenant. For negotiation purposes, the lease should require that the initial tenant pay a percentage of any profit derived from an assignment or sublease.



• Regulatory Compliance: Each lease must comply with applicable federal, state, and local

regulations. Language to this affect should be included within each lease, identifying the tenant as responsible for complying with these regulations.

• Hold Harmless Provision: This provision protects the Airport from any legal action, suits, proceedings, claims, damage, loss, liability, cost of expense that may be filed against the tenant for any reason arising from the operation and/or negligence of the tenant.

• Nondiscrimination: Leases should include language that prohibits discrimination on the grounds of race, color, or national origin.

• Damage to Facilities: This section is meant to clarify how insurance proceeds should be used. It will identify the tenant as the party responsible for repairs, and detail the timeframe for the repair completion. There should also be a provision for the payment of rent in the event of damaged facilities.

• Insurance Obligations and Indemnification: To protect both the Airport and the tenant, insurance requirements need to be outlined in each lease agreement. In some cases, these different types of insurance policies can be combined under general liability coverage. Additional insurance should be provided by the on-airport restaurant concerning the sale of alcohol. To ensure that each tenant is in compliance of these requirements, a Certificate of Insurance will be required to be presented annually to airport management. In the event of the cancellation of insurance, it will also be required that the tenant notify the airport within a specific timeframe. For Cuyahoga County Airport, insurance coverage requirements are listed in Appendix B of the Airport Minimum Standards document. These established amounts need to be applied to leases and include the following coverage:


• Environmental Considerations: A baseline of expectations needs to be established in

each lease regarding the usage of fuels, solvents, and other contaminants.

• Living Clauses: Because minimum standard documents evolve as an airport develops, it is important that living clauses are outlined within the Lease Policy that allows existing agreements to change as the associated regulations and laws change. At Cuyahoga County Airport, leases need to reference the Airport Rules and Regulations, and the Airport Minimum Standards for Aeronautical Activities. In addition, living clauses should reference escalations of rent (usually based upon CPI).



• Force Majeure: This clause frees both the Airport and tenant from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an act of God.

• Holdover: This clause serves as a brief extension of the lease terms, but without

executing a new lease. It is typically utilized during the renegotiation of a lease, and allows both parties to function without the disruption of service.

A key consideration when entering into a lease agreement are the Airport's developmental needs. Utilizing airport property to its best and fullest potential requires that the Airport stipulate in leasehold agreements exactly what activities are permitted within a specific lease, and for how long the Airport is willing to give up control of that allotted area. Sections dealing with Airport developmental issues should be included in each lease agreement. These sections would include lease term, use of premises, reversion clause, assignments & subletting provisions, holdover clause, and term extension options. 2.2 Recommended Lease Structure Modifications Currently, individual leases at Cuyahoga County Airport do not address all of the elements recommended for inclusion within every lease. In each lease, either one or more of these sections was not clearly defined, or the issues were not addressed at all. The following displays the sections that were not included in each specific leasehold agreement:

• Eaton Corporation - Nondiscrimination Clause - Force Majeure - Holdover Clause

• Airport Greens Golf Club - Security Requirements - Environmental Considerations - Holdover Clause

• C.C. Hangars, Inc. - Security Requirements - Environmental Considerations - Holdover Clause - Nondiscrimination Clause - Force Majeure

• Flight Options, LLC - Security Requirements - Environmental Considerations - Holdover Clause - Nondiscrimination Clause - Force Majeure

• MBNA Ohio Properties Inc. - Holdover Clause



• National City Bank - Environmental Considerations - Holdover Clause - Nondiscrimination Clause

• North Point Leasing Corp. - Security Requirements - Taxes and Fees - Environmental Considerations - Holdover Clause - Nondiscrimination Clause - Force Majeure

• Progressive Casualty Insurance Company - Security Requirements

• Robemil, Inc - Reversion Clause - Security Requirements - Environmental Considerations - Holdover Clause - Nondiscrimination Clause

• T&G Flying Club - Security Requirements - Taxes and Fees - Term Extension Options - Escalation Clause - Force Majeure - Holdover

In each of these instances, the sections identified need to be added to each lease. With the new lease policy, all of these issues will be covered in every lease. Therefore, it is recommended that:

The Airport should include every pertinent lease issue in a standardized format, covering all basic aviation lease clauses in each leasehold agreement.

2.3 Lease Term Correction Strategies Current leasehold documents do not conform to a single, cohesive standard because there are either a multitude of amendments or lease assignments. As such, there should be a concerted effort on the part of the County to bring these leases into conformance with a recommended set of established standards. Unfortunately, the County is limited in its ability to change many of the established leases due to lengthy term and lease extension options. To adjust the terms in current leases, the Airport will need to utilize one of the following methods:



• Renegotiation of Lease Terms: This could be initiated by either the tenant or the Airport, seeking to add an amendment to the current lease. If the Airport is initiating the renegotiation, an incentive will need to be offered to the tenant in exchange for adhering to the new lease policy. That incentive may be a lease extension that is not already included in the current lease.

• Upon Assignment or Subletting of Current Lease: Many of the current leases are a result of an assignment of a previous lease agreement. A tenant cannot assign or sublet the lease terms without the express approval of the Airport, which gives Cuyahoga County Airport the opportunity to update the lease terms to the new airport lease policy.

• Default of Current Lease: If a tenant does not adhere to the obligations of their specific leasehold agreement, either through non-payment of rent or violations of the Airport's Rules and Regulations, the Airport can institute the standard leasing policy for future agreements.

• Expiration of Current Lease Term: When the term of any lease expires, and the tenant is unable to utilize an extension option, that particular lease can be discarded if it does not conform to the new leasing policy of the Airport.

Under the worst case scenario, the Airport could attempt to buy out the tenant lease through a negotiated process or through eminent domain. Typically, these arrangements are costly and as such are seldom used. For new leases, the level of proposed investment will impact the lease term (see subsection 2.1), as will the inclusion of reversion clauses (see subsection 2.4). There are other lease term recommendations that are specific to various leases. However, in general, these strategies address rates and charges, lease structure modifications. 2.4 Reversion Clauses Many lease documents for long-term ground leases at airports contain a provision known as a Reversion Clause. FAA Order 5190.6a requires airports to make all facilities and services available on a fair and reasonable term without unjust discrimination. A perpetual lease would violate this condition. Generally, the ownership of improvements made by the tenant will revert to the airport sponsor at the end of the lease period, which can vary from 20 to 40 years, depending upon the number of renewal periods granted. Lease terms typically depend upon on some are all of the following:

• The amount of tenant investment • The useful life assessment of the building involved • The length of time required by the investor to recoup his/her capital investment

A long term lease lets the tenant get financing to build the improvement and gives them adequate time to receive a return on their investment. At the conclusion of the initial lease term, the airport sponsor can assess the improved value of the property and structures and exercise the right to lease both the land and improvements at their prevailing market rent, assuming that a reversion clause is included in the ground lease and they choose not to extend the lease.



A sample reversion clause for use in leases at Cuyahoga County Airport follows:

Ownership of Improvements: All buildings and improvements constructed upon the premises by Lessee shall remain the property of Lessee unless said property becomes the property of Lessor under the following conditions, terms and provisions:

• Removal of Buildings. No building or permanent fixture may be removed from the premises.

• Assumption. All buildings and improvements of whatever nature remaining upon the leased premises at the end of the primary term, or any extension thereof, of this lease shall automatically become the property of Lessor absolutely in fee without any cost to Lessor.

• Building Life. It is agreed that the life of the building to be constructed by Lessee on the property herein leased is thirty (30) years.

Before adopting a leasing policy that addresses reversion, there were a number of issues that should be considered, including:

• Ensure the reversion policy is consistently applied to all existing and prospective tenants. • Determine if reverted improvements will be attractive to prospective tenants. • Refer to the Airport’s Master Plan to find out if structures and their locations meet

current and future airport development needs. • Confirm that the reversion policy is in agreement with the FAA Airport Compliance

Manual stated in FAA Order 5190.6B. • Ensure that there is no discrimination between prospective tenants and current tenants

whose property has reverted. For the reversion options under which the airport sponsor takes title to a building, a number of issues must be considered:

• The County gains more control over the airport and its structures. • The County gains additional revenue. • The County has to commit staff and resources to manage and maintain the additional

buildings; some buildings may take more resources than others. If reverted buildings are not salvageable or the land is needed for other purposes, the following options should be considered:

• Lease the building back to the tenant, who then makes a new investment. • Lease the building to a new tenant who will make an investment. • Develop the land for other needed purposes.



A reversion clause can also state that the tenant remove (demolish) any improvements (structures) that they have made to the property they lease. This can be beneficial to the sponsor if the sponsor believes that the hangar may be in too much disrepair to salvage when the lease expires. This can save the airport cost of demolishing buildings that are in structural failure. This can also be beneficial to the tenant if the tenant believes the building materials can be used or sold. Reversion clauses have become normal in the aviation industry for a number of reasons. These include maximizing future revenue streams and maintaining a level of control over the development and maintenance of facilities on the airport. Each airport has its own lease language and different approaches to the issue. At Cuyahoga County Airport, the lease language can be developed to support the reversion of property improvements to the County. The Cuyahoga County Airport will have greater financial production with the reversion clauses in their leases than without. Even if there are individual cases where a negotiated lease term for a ground lease is increased or modified to postpone actual property reversion, the prime motivation for encouraging tenants to extend/renegotiate their ground lease is the reversion clause. The reversion clause is an important tool as it relates to the Airport’s future revenue stream and should be included in all new leases. 2.5 Insurance Obligations and Indemnification To indemnify is to secure against hurt, loss, or damages. In contract language, indemnification is the section that lays out which parties are responsible for protection against loss or harm. Insurance is the primary means by which parties are protected from potential losses. To protect both the Airport and the tenant, insurance requirements need to be outlined in each lease agreement. These requirements should include coverage for property, commercial general liability, auto, employer liability, and fire. Aside from general insurance requirements (which seem to be adequate), lease agreements at Cuyahoga County Airport need to include indemnification protection stipulations including a hold harmless provision, damage to facility clause, and force majeure language. 2.6 Minimum Standards for Aeronautical Activities

Lease policy should consider the “required services” sections of a typical lease. For aeronautical activities, the Airport has Minimum Standards for Aeronautical Activities. As a result, specific requirements can be removed from the lease agreements and identified in the separate, FAA-approved, minimum standards document. The primary purpose for developing minimum standards is to “level the playing field” for all aeronautical tenants so as not to offer an unfair advantage to one over another. At the same time, minimum standards help to ensure that the Airport is able to offer the services it needs and desires to the flying public at an acceptable standard. If such required services are negotiated in each individual lease agreement, there is a chance for inconsistencies to arise that can lead to claims of discrimination and/or exclusive rights (by default, not intent) between competing businesses on the Airport (or those wishing to become a business on the Airport). Leases at Cuyahoga County Airport should include leasehold sections that specifically deal with these Standards. These sections should include living clauses,



regulatory compliance, security requirements, construction of improvements, environmental considerations, and nondiscrimination provisions. The Rates and Charges for the Airport are published in the Minimum Standards document. The most recent version of that document found was from December of 2006. Most of the prices at that time are still in effect. Thus, to adjust the charges the Minimum Standards must be updated or the Rates and Charges must be extracted from the Minimum Standards and published separately by Cuyahoga County Council. Because it has been a long time since the updating of the Minimum Standards, it is recommended that a review and update be performed. 2.7 Recommended Rates and Charges Adjustments Grant Assurance 24 states that Airports must set rates, charges, and leasehold rents that, to the extent possible, will ensure the financial self-sustainability of the Airport. To achieve this, it is important that rates are set that reflect the fair market value of property in Cuyahoga County. In general the leasehold provisions that focus on financial issues include lease rent, escalation clause, operation & maintenance provisions, taxes & fees, liens, and lessee default language. Current Rates Figure 1 presents the current rates and charges taken from the Airport's Minimum Standards for Commercial Operators document. This was first published in December of 2006. Prices have escalated since that time and should be reflected in the most recent rates and charges for the Airport. Not shown in this document are the fuel flowage fees charged by the Airport. The going rates are between $0.07 and $0.10 per gallon. Airport leases with escalation clauses have continued to increase prices since 2006. Upon examination of the Airport leasehold agreements, there were only two agreements (Eaton and

Figure 1 - Current Rates & Charges



Progressive) that expressed specific hangar rates and ground rates. All other Airport leases stipulated a rental amount without specifying what portion of the rent would go toward hangars and what portion would go toward ground rent.

Tenant Lease Area (sf) Rent/Yr Annual Rent/sf Eaton Hangar 24,640 $ 97,117 $3.94 Progressive Hangar 17,555 $66,000 $3.76

Total 42,195 $163,117 $3.87 (Weighted Average)

Eaton Ground 86,576 $14,968 $0.17 Progressive Ground 71,360 $9,104 $0.13

Total 157,935.5 $24,072 $0.15 (Weighted Average)

Eaton Fuel Flowage Fee -- $0.07/gal -- Progressive Fuel Flow Fee -- $0.07/gal --

As shown, the effective annual rate for hangar space at Cuyahoga County Airport is $3.87/sf, while the annual rate for land is $0.15/sf. The fuel flowage fees for these two leases are $0.07 per gallon, while the fuel flowage fees for other Airport uses range from $0.07/gal. to $0.10/gal. The first question that must be asked about these rates is, do they accurately reflect the market area lease rental rate? Secondly, are these rates being uniformly applied to all leases at the Airport? With the exception of the fuel flowage fee, the rates are currently not being applied uniformly to all tenants at Cuyahoga County Airport. To determine if the rates equal the market value, an examination of the Airport and the surrounding area was performed (see Chapter 2). Commercial Real Estate Market Analysis Typically, ground lease rent amounts are structured as a percentage applied to the market value of the property. For Cuyahoga County, a rental rates for hangars and ground leases are recommended to be set to 10 percent of the market value. For example, a hangar valued at $50.00/sf would have an annual lease rate of $5.00/sf. Similarly, land valued at $2.00/sf would have an annual lease rate of $0.20/sf. To establish market values at Cuyahoga County Airport, the Cuyahoga County GIS System and the CoStar Commercial Real Estate Database were utilized. For ground and hangar rates, data from the Cuyahoga County GIS System provided the most accurate and current information. A sampling method was used to evaluate the average price per square foot for hangars and ground space. The market value for land (fee simple) was determined to equal $2.30 per square foot. Existing hangar space was valued at $46.10 per square foot, which considers the remaining useful life of the buildings. For office space, the CoStar Commercial Real Estate Database provided the average lease price per square foot for



office space within a one mile radius surrounding the Cuyahoga County Airport. The average lease rate for office space within a one mile radius of the Airport was $15.42 per square foot. A detailed explanation of the area market findings and methodologies used can be found in Appendix 1-A. Both the Costar and County GIS databases were utilized to verify results and marginalize possible error. In addition to this, recent sales comparisons for airport hangars were examined in the state of Ohio. Recommended Rates To ensure the best and highest use of Airport property, it is recommended that the rental rates reflect the current market values. Given the average market values at the Airport, and utilizing the recommended 10 percent annual lease rate, the new lease rates associated with ground rentals have been estimated as follows:

• Conventional Hangar Rental Rates: $4.61/Sq Ft • Ground Lease Rates (Improved Land): $0.23/Sq Ft • Ground Lease Rates (Unimproved Land): $0.184/Sq Ft • Average Office Space Lease Rates: $15.42/Sq Ft

Forces of supply and demand should be the final deciding factor when setting these rates. Thus, negotiation will always play a role in the setting of prices. Not all Airport property rental rates are equally valuable. Some areas with access to the runway system afford economic opportunities that cannot be reproduced on non-aeronautical parcels, and vice versa. Therefore it is recommended that at least two tiers of ground rental rates be established. The first involves parcels with good ground and airfield access. Those parcels would be valued at $0.23/sf. However, parcels without good internal access or access to the airfield may have a reduced rate, depending upon how much investment will be required to create access infrastructure. For example, if roadways and utilities infrastructure will cost 20 percent of the total development investment, the lease rate could be reduced by 20 percent from $0.23/sf to $0.184/sf. In this manner, allowances for needed infrastructure can be incorporated into the lease structure. In addition lease and ground rental rates, fuel flowage fees, rental rates for T-hangars, and landing fees are included in the list of recommended charges:

• Fuel Flow Fee: $0.07/gal to $0.10. • Landing Fees: No recommended changes from the landing fee schedule shown in

Appendix 1-B • T-Hangar Rental Rates: $200/month, increasing to $225/month within 5 years

It is important to note that the current fuel flowage fees already in use at the Airport are acceptable for the area. Of course, the fair market value rental amounts should be applied uniformly to all tenants on the Airport, and the City should avoid instances where one tenant has an unfair advantage over another. For each lease, however, factors such location, condition of



facilities, and land use will cause the rental rates to vary slightly. Therefore, it is recommended that:

The County should charge rates that reflect fair market value and apply those rates uniformly to all tenants without unjust discrimination.

Currently, the fuel flowage fee rate is built into leases with Airport tenants. This makes it difficult to maintain a uniform fuel flowage fee rate or to implement changes to those rates. Some airports publish their fuel flowage fees on a separate rate chart that can be set for the entire airport (similar to the one contained in CFG's Minimum Standards). These rates are collected, not from the tenants, but from the fuel sellers upon delivery of fuel to the various airport FBOs and self-fuelers. Therefore, it is recommended that:

The County should set Airport-wide fuel flowage rates that can be adjusted by Cuyahoga County Council, as appropriate.

Collection of the fuel flowage fee should be from the fuel supplier, rather than from the Airport tenants. This policy would be implemented as leases which contain fuel flowage fee clauses expire. 3. SUMMARY OF LEASE POLICY RECOMMENDATIONS

SUMMARY OF THE LEASE POLICY RECOMMENDATIONS has been compiled in this section. The recommendations cover a wide range of aviation-related leasehold issues, including developmental needs, regulatory standards, and financial considerations at Cuyahoga

County Airport. Standardization of the leasehold policy would require all leasehold agreements to eventually be subject to the same leasehold policy. Certain lease sections and elements should be added to the existing leases that do not address all the pertinent areas concerning aviation-related leasehold agreements. Observations from the lease policy recommendations can be summarized as follows:

• Lease Standardization: Lease standardization is needed at the Airport. It is important that all leases reflect a cohesive standard that binds all tenants to adhere to the same requirements. This, in turn, helps to ensure that no unfair competitive advantages will inadvertently be given to one tenant over another. A standard leasehold agreement at the Airport should be made up of the following elements:

- Lease Term - Term Extension Options - Use of Premises - Operation & Maintenance - Construction of Improvements - Reversion Clause - Lessor Rights, Reservations, and Obligations - Lessee Rights, Reservations, and Obligations

A



- Security Requirements - Taxes and Fees - Liens - Defaults - Lease Rate - Escalation Clause - Assignments and Subletting - Regulatory Compliance - Hold Harmless Provision - Nondiscrimination - Damage to Facilities - Insurance/Indemnification - Environmental - Living Clauses - Force Majeure - Holdover

• Investment and Lease Terms: Ground lease terms for tenants should be directly

proportional to the amount of investment a tenant makes in the property. Typically, the key consideration for establishing a lease term is the ability of the tenant to fully amortize their investment over the course of that term. Utilizing the recommended matrix of investment requirements and lease terms, a $10 million dollar investment would yield the longest lease term (including extensions) of 40 years, while an investment of $500 thousand should only need a 20 year lease term (including extensions) to fully amortize that investment.

• Reversion Clauses: Reversion clauses should be specified in each lease that all

permanent improvements shall revert back to the Airport upon termination of a lease, while smaller items such as signs, racks, and conveyors will not.

• Security Provisions: A majority of the current leasehold agreements do not have a

security requirements section. While the Airport does have security requirements in Airport Rules and Regulations that outline the security requirements dictated by the TSA and Homeland Security, it is important that each lease agreement reference these directly.

• Insurance: To protect both the Airport and the tenant, a Certificate of Insurance will be required to be presented annually to airport management. In the event of the cancellation of insurance, it is also recommended that the tenant notify the airport within a specific timeframe. The insurance obligations of each tenant should include the following coverage:




• Implementing Lease Conformity: There should be a concerted effort of the part of the County to bring all current leasehold agreements into conformance with the recommended set of established standards that cover all basic aviation lease clauses in each leasehold agreement. In order to do this, the Airport will need to utilize one of the following methods:

- Renegotiation of Lease Terms: This could be initiated by either the tenant or the Airport, seeking to add an amendment to the current lease. If the Airport is initiating the renegotiation, an incentive (such as an added lease extension) will need to be offered to the tenant in exchange for adhering to the new lease policy.

- Assignment or Subletting of Current Lease: A tenant cannot assign or sublet the lease terms without the express approval of the Airport, which gives Cuyahoga County Airport the opportunity to update the lease terms to the new airport lease policy.

- Default of Current Lease: If a tenant does not adhere to the obligations of their specific leasehold agreement, either through non-payment of rent or violations of the Airport's Rules and Regulations, the Airport can institute the standard leasing policy for future agreements.

- Airport Buy Out: Under the worst case scenario, the Airport could offer to compensate a tenant financially in order to abolish certain leasehold agreements that do not conform to the Airport's established leasing policy.

• Application of Minimum Standards: Lease policy should consider the “required

services” sections of a typical lease. For aeronautical activities, the Airport has Minimum Standards for Aeronautical Activities that cover regulatory considerations. Each leasehold agreement should reference the Airport Minimum Standards as a method of "leveling the playing field" for all aeronautical tenants. This method prevents the Airport from requiring each tenant to adhere to different standards, and minimizes the chances of inadvertently offering an unfair advantage to one tenant over another.

• Recommended Rates & Charges: It is important that the rates and charges at the Airport

reflect the fair market value of property in Cuyahoga County. It is important to note that forces of supply and demand will be the final deciding factor when negotiating lease rates, and that not all Airport property is equally valuable. However, it is possible to establish an average market baseline that should be referenced. For hangar rates, fuel flowage fees, and landing fees, the competitive market rates at surrounding airports should be used to establish fair rates. Given the average market values at the Airport, the new rates and charges have been estimated as follows:

- Conventional Hangar Rental Rates: $4.61/Sq Ft - Ground Lease Rates (Improved or Accessible Land): $0.23/Sq Ft - Ground Lease Rates (Unimproved or Poorly Accessible Land): $0.184/Sq Ft - Average Office Space Lease Rates: $15.42/Sq Ft - Fuel Flow Fee: $0.07/gal to $0.10. - Landing Fees: No recommended changes from the landing fee schedule shown in

Appendix 1-B - T-Hangar Rental Rates: $200/month, increasing to $225/month within 5 years.



• Airport-wide Fuel Flowage Fee: An Airport-wide fuel flowage fee should be set and

adjusted by Cuyahoga County Council, and that is not built into leases with Airport tenants. The current system makes it difficult to change or adjust rates, and without uniformity there exists opportunities for one Airport tenant to have an unfair advantage over another. By establishing the fuel flowage fees separately from the individual Airport leases, collection of the fuel flowage fee would be collected from the fuel supplier, rather than from the Airport tenants.

• Escalation Rate: To compensate for inflation, rent escalation clauses should be tied to a

Consumer Price Index or 2.5% (whichever number is higher). As an Airport standard, this escalation of rental amounts should be effective annually for each tenant.



Appendix 1-A Cuyahoga County GIS System Data The following data was gathered on July, 2013, from the Cuyahoga County GIS system. The Cuyahoga County Geographic Information Systems (CEGIS) Department manages and coordinates the use of GIS and its related technologies within Cuyahoga County. A GIS is defined as an advanced computer system capable of collecting, storing, viewing, and analyzing geographically referenced or spatial information. 'Geographically Referenced' or 'Spatial' simply means that the information can be viewed on a map and analyzed based on location and proximity.

Airport Building Sampling (County 2013 Data)

Address Building Sq Ft Building Value Building Price/Sq

Ft 26180 Curtiss Wright Pky 99,301 $5,502,900 $55.42 26301 Curtiss Wright Pky 92,252 $3,916,700 $42.46 26340 Curtiss Wright Pky 26,477 $1,289,200 $48.69 26500 Curtiss Wright Pky 27,541 $1,574,000 $57.15 355 Richmond Rd 23,316 $111,800 $4.79

Total 268,887 $12,394,600 $46.10 (Weighted Average)



Airport Ground Sampling (County 2013 Data)

Address Land Sq Ft Land Value Land Price/Sq Ft 26100 Curtiss Wright Pky 176,683 $283,900 $1.61 26301 Curtiss Wright Pky 126,058 $202,600 $1.61 26351 Curtiss Wright Pky 87,120 $150,000 $1.72 26561 Curtiss Wright Pky 83,696 $334,800 $4.00 26301 Curtiss Wright Pky 296,774 $1,068,400 $3.60 26340 Curtiss Wright Pky 86,501 $139,000 $1.61 26500 Curtiss Wright Pky 194,278 $334,500 $1.72 355 Richmond Rd 124,146 $199,500 $1.61

Total 1,175,256 $2,712,700 $2.31 (Weighted Average)

CoStar Commercial Real Estate Database The following data was gathered on July 2013, from the CoStar Commercial Real Estate Database. The CoStar Office Report calculates office statistics using CoStar Group’s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate. The following sample data was taken from a one mile radius surrounding Cuyahoga County Airport. The search parameters consisted of Airport Hangar properties.



Airport Building Sampling (CoStar 2011 Data)

Address Building Sq Ft Building Value Building Price/Sq Ft

5375 Avion Park Dr 56,866 $909,363 $15.99

26300 Curtiss Wright Pky 15,076 $859,453 $57.01

26300 Curtiss Wright Pky 26,412 $1,787,618 $67.68


26460 Curtiss Wright Pky 18,127 $673,699 $37.17


Total 170,499 $7,590,805 $44.52

(Weighted Average)

Airport Ground Sampling (Costar 2011 Data)

Address Land Sq Ft Land Value Land Price/Sq Ft 328 Bishop Rd 435,600 $354,718 $0.81 26300 Curtiss Wright Pky 53,579 $86,653 $1.62 26100 Curtiss Wright Pky 125,888 $203,866 $1.62 26180 Curtiss Wright Pky 99,317 $176,698 $1.78 26340 Curtiss Wright Pky 86,684 $139,869 $1.61 26380 Curtiss Wright Pky 173,020 $284,366 $1.64




Address Land Sq Ft Land Value Land Price/Sq Ft 26460 Curtiss Wright Pky 76,666 $133,026 $1.74 26500 Curtiss Wright Pky 194,278 $336,605 $1.73

Total 1,245,032 $1,715,800 $1.38 (Weighted Average)

Comparable Hangar Sales Data The following data was gathered on July, 2013, from the CoStar Commercial Real Estate Database. A search of recent comparable property sales yielded seven results in the state of Ohio. The following three results were the only available hangar sales as recent as 2010.


Address 291 Barnets Mill Rd C R 70 8101 S R 44 City Camden, OH 45311 Quincy, OH 43343 Ravenna, OH 44266

Seller Randall Krohn Penny Boyer-Krohn

Bernie Stewart 317 Main St Quincy, OH 43343 (937) 585-6896

Peter K Graichen Trust 300 Loomis Ave Cuyahoga Falls, OH 44221 (330) 923-7587

Buyer Timothy R Dearwester Trustee

Arthur Hues 415 Carriage Rd Satellite Beach, FL 32937 (321) 777-8645

Alan Shimer 2850 Shady Lake Dr Vermilion, OH 44089 (440) 967-6947

Sale Date 12/10/2010 10/3/2011 1/10/2012 Building Type Airplane Hangar Airplane Hangar Airplane Hangar Building Sq Ft 1,843 2,368 1,323 Sale Price $150,000 $25,000 $55,000 Sale Price/Sq Ft $81.39 $10.56 $41.57

Weighted Average Value= $41.45/Sq Ft



Office Space Market Value The following data was gathered on July, 2013, from the CoStar Commercial Real Estate Database. This sample was taken from a one mile radius surrounding Cuyahoga County Airport. In total, thirteen properties were within the search parameters of Office Space. As shown in the graph, the average office space market value in the service area is $15.42 per square foot per year.



Airport Office Market (Costar 2013 Data)

Address Building Type Building Square Feet % Leased 1 AEC Pky Office 41,279 100% 25875 Chardon Rd Office 1,261 100% 26909 Chardon Rd Office 3,194 100% 26971 Chardon Rd Office 2,352 100% 27027 Chardon Rd Office 13,068 100% 26301 Curtiss Wright Pky Office 89,000 100% 26380 Curtiss Wright Pky Office 39,356 39.8% 414 Dunbar Ln Office 3,083 100% 387 Golfview Ln Office 34,500 100% 2 Merit Dr Office 4,000 100% 250 Richmond Rd Office 7,354 100% 464 Richmond Rd Office 9,000 100%

25900 Richmond Rd Office 1,756 100%



Appendix 1-B Cuyahoga County Airport Landing Fee Schedule

Aircraft/Gross WeightCommercial Landing

FeeNon-Com. Landing

FeeParking (1-24 hrs.)

Parking Ea. 24 Hrs. Thereafter

SINGLE ENGINE $3.00 $0.00 $5.00 $5.00MULTI-ENGINEA) 0 - 5,000 Ibs. $5.00 $2.00 $6.00 $6.00B) 5,001 - 10,000 $8.00 $5.00 $7.00 $7.00C) 10,001 - 15,000 $11.00 $8.00 $10.00 $9.00D) 15,001 - 20,000 $17.00 $12.00 $11.00 $10.00E) 20,001 - 25,000 $22.00 $15.00 $12.00 $11.00F) 25,601 - 30,000 $27.00 $18.00 $13.00 $12.00G) 30,001 - 35,000 $32.00 $20.00 $14.00 $13.00H) 35,001 - 40,000 $37.00 $25.00 $15.00 $14.00I) 40,001 - 45,000 $43.00 $28.00 $16.00 $15.00J) 45,001 - 50,000 $48.00 $30.00 $17.00 $16.00K) 50,001 - 55,000 $53.00 $35.00 $18.00 $17.00L) 55,001 - 60,000 $58.00 $40.00 $19.00 $19.00M) OVER 60,000 $63.00 $45.00 $21.00 $21.00NOTE: Landing Fees are charged for all aircraft operating under FAR -Part 135, No parking fe. charge for the first hour of parking

Class A Beech 55-95, Cessna 337, Piper PA-238-30-34-39-44, Grumman GA-7

Class B Aerostar 600-601-602, Beech 18-56-58-6O-A90-B90-C90, Cessna 310-340-401-402-411-414-421-425-441, Merlin 11 A Piper

PA-31-23C-23D-23E-23F, Mitsubishi 2F-2K-3001-3001A, Commander 500-520-560-680-681-685

Class C Beech E90-F90-100-A100-B100-200-B200-300-350-2000, Cessna 500-501-525-550, Merlin IIB-IIIA-IIIB-IIIC-IVA-IVC,

Lear 23-24-25-28-29, Mitsubishi 2G-2J-2L-2M-2N-2P, Piper PA-42, Commander 840-690-900-980-1000

Class D Beechjet 400, Cessna 560, Citation Excel-Ultra, Israel 1121, Astra-SP-SPX, Lear 31-35-36-55, Sabreliner 40, Falcon 10-100

Class E Cessna 650, Citation 7, Lear 45-55-60, Hawker 124-125, Sabreliner 60-65-75, Israel 1123-1124-1125

Class F Falcon 20, Hawker 600-600XP

Class G Falcon 200, Hawker 1000, Israel Galaxy

Class H Falcon 50-50EX-2000, Gulfstream I, Citation 10, Hawker Horizon

Class I Challenger 600-601, Lockheed Jetstar 6-B, Jetstar II

Class J Challenger 604, Falcon 900-900EX

Class K Canadair SE-Corporate Jetliner

Class L Gulfstream II, Convair 640

Class M Gulfstream III, IV, IVSP-5, Fokker F-28

Chapter 2: Competitive Market Assessment


R.A. Wiedemann & Associates, Inc., in association with Baker 2-1

Competitive Market Assessment 1. SERVICE AREA

IGURE 2-1 PRESENTS A GRAPHIC DEPICTION OF the Cuyahoga County Airport general aviation service area, which includes a 30-mile radius from CGF. As shown, there are a number of airports outside the service area that are relevant to any comparison of facilities,

prices, and services available at Cuyahoga County Airport. For this reason, they are included in the competitive market assessment. The larger database of airports provides a good basis for comparing regional pricing, the impact of fleet mix on facilities and services, etc. There were a total of seven airports within the designated service area of CGF and five airports included within the greater area.

Service Area Airports Greater Area Airports • Willoughby Lost Nation Municipal Airport • Medina Municipal Airport • Burke Lakefront Airport • Akron Fulton International Airport • Cleveland-Hopkins International Airport • Lorain County Regional Airport • Cuyahoga County Airport • Wadsworth Municipal Airport • Geauga County Airport • Northeast Ohio Regional Airport • Portage County Airport • Kent State University Airport

F



2. COMPARATIVE FACTORS

O COMPARE FACILITIES, SERVICES, PRICES, A SYSTEMATIC process was used to identify key comparative factors in each area of analysis. That included items such as runway length, airport size, and aviation activity measures for facilities. Aviation services considered the

types of aviation business activities that are present at each service area airport. Finally, the pricing for similar services at each airport should provide ranges that can be used by County decision-makers in setting rates and charges at the Airport. Prices that are outside the established ranges (either high or low) are likely to create uneconomical competitive situations for CGF. 2.1 Facilities Table 2-1 provides a comparison of service area and greater area airport facilities. Of the listed airports, seven have runways of 5,000 feet or greater, which makes them the best candidates for business jet activity. Cleveland-Hopkins International Airport has the two longest runways in the service area (9,956 feet by 150 feet and 9,000 feet by 150 feet). Cuyahoga County Airport has the second longest non-airline airport runway in the service area with dimensions of 5,102 feet by 100 feet. In addition to this, CGF's airport property, which includes 640 acres, is the second largest of any airport in the service area. Every service area airport shown in Figure 2-1 has instrument approach procedures of some type. Only three airports in the service area have air traffic control towers: Cuyahoga County Airport, Cleveland-Hopkins International Airport, and Burke Lakefront Airport. Given this assessment, Cuyahoga County Airport is in the top tier of airports in the service area with high quality facilities. 2.2 Based Aircraft There are a total of 863based aircraft within the Cuyahoga County Airport greater service area. The majority of based aircraft (65.8 percent) are single engine aircraft. Jet aircraft make up 19 percent of based aircraft, and multi-engine represent 10.1 percent, with the remaining 5.1 percent being helicopter and "other" aircraft. CGF has more based jet aircraft than any other airport in the greater service area. Of the 164 jet aircraft in the service area, 132 (80.5 percent) are located at Cuyahoga County Airport. Cleveland-Hopkins International Airport has the second highest number of based jets, with 18 (11.0 percent). Cuyahoga County Airport has a total of 225 aircraft on the field including 132 jet, 77 single engine, 15 multi-engine, and one helicopter. With the highest number of based jet aircraft, CGF is at the top of the spectrum with regard to business aviation, and is one of three general aviation airports in the service area with at least one based jet. Given this assessment, Cuyahoga County Airport should have the greatest means of any general aviation airport in the service area to produce revenue. 2.3 Aviation Services Table 2-2 presents the availability of various aviation services at each of the service area airports. Except for Geauga County and Wadsworth Municipal, the service area airports offered some form of aircraft repairs, and Geauga County and Burke Lakefront were the only airports that did not offer aircraft rentals. Within the greater service area, Cuyahoga County Airport was one of three airports that reported aircraft sales, avionics, and air freight services (the other

T



airports were Cleveland-Hopkins International and Burke Lakefront Airport). Five Airports offered charter services, and three airports offered avionics and charter services. CGF was the only airport in the service area to report all the following services: major frame and power repairs, avionics, flight instruction, charter service, aircraft rentals, and aircraft sales. With a wide variety of service offerings, Cuyahoga County Airport is on the high end of maintaining comparable and competitive services relative to the other service area general aviation airports. 2.4 Hangars and Tie-downs Monthly tie-down spaces are available at every service area airport, with the exception of Cleveland-Hopkins International Airport. As shown in Table 2-3, the prices for monthly tie-down spaces range from $30 at Wadsworth Municipal Airport, to $231 at Cuyahoga County Airport. Willoughby Lost Nation Municipal Airport exhibited the most expensive range of pricing for monthly conventional hangar space of all the airports ($250-$1,200), although the Burke Lakefront Airport exhibited the highest overnight pricing ($150). For conventional hangar storage, Cuyahoga County was in the median range for the greater service area pricing. Nine airports in the greater service area provided T-hangar pricing, however only four airports reported space currently available. Monthly T-Hangar rates ranged from $45 per month at Willoughby Lost Nation Municipal Airport to $600 at Medina Municipal Airport. Monthly rates at some airports depend on age and condition of the T-hangars and can vary widely between airports and even on the same airport. Cuyahoga County Airport is in the median range for prices on T-Hangars in the service area, at $200 per month. Geauga County Airport had the lowest conventional hangar prices in the service area, starting at $140 per month. Burke Lakefront Airport reported the highest monthly rates for conventional hangar space, with rates up to $4,500 per month ($150 per day). Given this assessment, pricing at Cuyahoga County Airport for hangars and tie downs can be considered mid-to-low range. The T-hangar space is priced slightly below average, while the tie-down space is somewhat higher than average. 2.5 Fuel Prices

It should be noted that all fuel prices change frequently, therefore the following narrative and associated table were compiled on the same day - July 25, 2013 - for the most accurate snapshot. There was no Mogas found at any area airports. All information regarding fuel prices was compiled from www.airnav.com.

Self-service Avgas is available at six of the greater service area airports. Geauga County and Medina Municipal had the lowest pricing at $5.99. The highest price for self-serve Avgas was found at Portage County Airport, listed at $6.25. For Full-service Avgas, the highest per gallon price was found at Cleveland-Hopkins International Airport ($8.16). The lowest full-serve Avgas price was found at Kent State University Airport at $6.27 per gallon. The average price per gallon for full-serve Avgas was $7.01 within the service area. Cuyahoga County Airport's full-service Avgas pricing of $6.99 was just below the service area average.

Self-serve Jet fuel is only available at Portage County Airport and Wadsworth Municipal

airport, and both airports had the same price at $4.99 per gallon. Full-serve Jet fuel is available at



five airports in the service area, with an average price of $6.00 per gallon. The lowest price was found at Willoughby Lost Nation Municipal Airport ($5.07) and the highest price was found at Burke Lakefront Airport ($6.63). Overall, Cuyahoga County Airport's fuel prices were priced slightly higher than the average Jet fuel prices within the service area, at $6.19 per gallon.

Only four airports in the greater service area recorded a fuel flowage fee, with the highest

listed at $0.12 per gallon at Wadsworth Municipal Airport, and the lowest fee listed at Akron Fulton International at $0.06 per gallon. Within the service area, both Cuyahoga County Airport and Burke Lakefront Airport listed a fuel flowage fee of $0.07 per gallon.



Table 2-1 - Facility Comparison

Service Area Airports Airport Code

Ownership Acres

Number of Based Aircraft Runway Navaids

TowerJet Multi Single Heli Other Total

First Second Highest

L x W L x W Willoughby Lost Nation Municipal Airport LNN Public 400 1 14 58 0 0 73 5,028 x 100 4,272 x 100 GPS No

Burke Lakefront Airport BKL Public 450 6 4 14 7 0 31 6,195 x 150 5,199 x 100 ILS Yes

Cleveland-Hopkins International Airport CLE Public 1,402 18 6 5 0 4 33 9,956 x 150 9,000 x 150 ILS Yes

Cuyahoga County Airport

CGF Public 640 132 15 77 1 0 225 5,102 x 100 -- ILS Yes

Geauga County Airport 7G8 Public 51 0 0 32 1 9 42 3,500 x 65 -- GPS No

Portage County Airport POV Public 76 0 5 51 1 5 62 3,499 x 75 -- GPS No

Kent State University Airport 1G3 Public 298 0 2 37 0 0 39 4,000 x 60 -- GPS No

Greater Area Airports

Medina Municipal Airport 1G5 Public 283 0 7 46 1 4 58 3,556 x 75 2,867 x 60 GPS No

Akron Fulton International Airport AKR Public 1,171 3 17 85 1 0 106 6,336 x 150 2,337 x 100 GPS No

Lorain County Regional Airport LPR Public 1,149 2 9 72 5 0 88 5,002 x 100 -- ILS No

Wadsworth Municipal Airport 3G3 Public 183 0 5 70 0 5 80 3,529 x 75 2,392 x 35 GPS No

Northeast Ohio Regional Airport HZY Public 611 2 3 21 0 0 26 5,197 x 100 -- GPS No

Source: Airport Master Record as Published July 2013 (www.gcr1.com/5010WEB & www.airnav.com).



Table 2-2 - Services Comparison

Service Area Airports Frame Repairs

Power Repairs

Flight Instruction

Charter Service

Avionics Aircraft

Sales Aircraft Rentals

Other

Willoughby Lost Nation Municipal Airport Major Major Yes Yes No No Yes

Burke Lakefront Airport Major Major Yes Yes Yes No No Air Freight Services, Air

Ambulance, Cargo Handling

Cleveland-Hopkins International Airport Major Major No Yes Yes No Yes Air Freight Services

Geauga County Airport None None No No No No No

Cuyahoga County Airport Major Major Yes Yes Yes Yes Yes Air Freight Services

Portage County Airport Major Major Yes No No No Yes

Kent State University Airport Major Major Yes Yes No Yes Yes Surveying Services


Medina Municipal Airport Major Major Yes No No No Yes

Akron Fulton International Airport Major Major Yes Yes No No Yes

Lorain County Regional Airport Major Major Yes Yes Yes Yes Yes Cargo Handling

Wadsworth Municipal Airport None None Yes Yes No No Yes Glider Services

Northeast Ohio Regional Airport Minor Minor Yes No No No Yes

Source: Airport Master Record as Published July 2013 (www.gcr1.com/5010WEB & www.skyvector.com).



Table 2-3 - Rates and Charges Comparison

Service Area Airports Tie-Down

Conventional Hangars

T-Hangars Fuel Price/Gallon Fuel Flowage

Fee $/month Avail $/month Avail $/ month Avail 100

LL SS 100 LL

FS Jet A

SS Jet A

FS

Willoughby Lost Nation Municipal Airport $45 5

$250-$500nh \

$390-$1,200h

4 $45 5 $6.22 $6.42 -- $5.07 --

Burke Lakefront Airport $50 Yes $150/day -- -- -- -- $7.20 -- $6.70 .07

Cleveland-Hopkins International Airport -- No $172 -- -- -- -- $8.16 -- $6.63 --

Cuyahoga County Airport $68-$231 -- $215-$250 -- $200 -- -- $6.99 -- $6.19 .07

Geauga County Airport $42 10 $140-$180 2 $135 No $5.99 -- -- -- --

Portage County Airport -- $6.25 -- $4.99 -- --

Kent State University Airport $32-47 15 $185-280 No $210 No -- $6.27 -- $5.41 --


Medina Municipal Airport $60-$80 Yes -- -- $165-$600 No $5.99 -- -- -- --

Akron Fulton International Airport $10-50 night Yes $300-$350 Yes $300-$350 Yes -- $6.44 -- $5.06 .06

Lorain County Regional Airport $57.75 Yes $152-$189 Yes $189-$194 No -- $6.47 -- $4.81 --

Wadsworth Municipal Airport $30 -- -- $50/night Yes $5.91 -- $4.99 -- .12

Northeast Ohio Regional Airport $78 8 $160-$650 1 $170-$567 14 $6.14 -- -- $5.59 --

Source: RA Wiedemann & Associates Inc. Telephone Survey 07/2013 & www.airnav.com Legend: LL = Low Lead; SS = Self Serve; FS = Full Serve; sf = Square Feet; NC = No Charge; N/A = Not Available

Chapter 3: Staffing Levels



Staffing Levels

SUMMARY OF THE AIRPORT SPONSOR’S PERSONNEL responsibilities, reporting hierarchy, and decision making process are described in this section, along with additional staffing options. Full job descriptions were included in Appendix 3-A. However, there was no

audit of job performance of County employees at the Airport. Instead, a comparison was made of a variety of labor influencing factors at a minimum of 10 airports using a matrix array. Comparative factors included in this analysis included items such as:

• Airport Size in Acres • Primary Runway Length • Snow Removal/Mowing Operations • Total Labor Costs (Benefits Included) • Number of Airport Employees • Number of Airport Maintenance Employees (If Available as a Subset of Total

Employment) • Airport Fuel Concession

In our survey of airports, we attempted to determine whether or not airport employees do snow removal and mowing operations or if that is given to different municipal staff to accomplish. We also inquired about the fuel concession operation, whether it is manned by airport employees or by a Fixed Base Operator.

The resulting metrics from this analysis present general measures such as the number-of-employees-per-acre, the number-of-employees-per-based-aircraft, and the average-cost-per-employee. The analysis should give County officials comparative data concerning the average employee utilization and cost at other airports, along with the number of employees that are required for various sizes of airports. Conclusions from this data can be made by County leadership. In addition to the survey, we examined the possibility of third-party operation of the Airport. In this regard, initial inquiries were made with the Cleveland Jet Center. Results of those discussions are presented in Section 4, below. 1. SURVEY OF AIRPORTS

SURVEY OF 10 AIRPORTS WAS UNDERTAKEN during the last two weeks in May and the first two weeks of June. The airports selected were those in the region that may compete for based aircraft and operations. With one exception (Cleveland-Hopkins International),

these are the same airports examined in the Competitive Market Assessment in Chapter 2. It was reasoned that similar issues concerning snow removal, labor costs, and mowing season would be experienced at these airports. The responsibility for selling fuel was included in the survey, as that directly impacts the need for line employees. The 10 survey airports, along with Cuyahoga County Airport, have physical characteristics and aviation activity as shown in Table 3-1.

A

A



Table 3-1 - Service Area Airports Airport Name Acres Based Aircraft Based Jets Longest Runway

Akron Fulton International 1,171 106 3 6,336 Burke Lakefront 450 31 6 6,195 Cuyahoga County (CGF) 640 225 132 5,102

Geauga County 51 42 0 3,500 Kent State University 298 39 0 4,000 Lorain County 1,149 88 2 5,002 Medina Municipal 283 58 0 3,556 Northeast Ohio Regional 611 26 2 5,197 Portage County 76 62 0 3,499 Wadsworth Municipal 183 80 0 3,529 Willoughby Lost Nation 400 73 1 5,028 Averages (Excluding CGF) 425 55 1 4,167

The telephone survey asked six primary questions concerning the personnel costs and labor responsibilities at each airport. Responses from those interviews are presented in Table 3-2. As shown, total employment at the airports averaged 7.7, with an average of 3.1 of these employees dedicated to airport maintenance. Average labor costs at the reporting airports was $238,054 or roughly $30,916 per full time equivalent employee. If Burke Lakefront was not included in the totals, the average employment would drop to 2.7 per airport and average labor costs would total $113,054, or $41,872 per full time equivalent employee. At Cuyahoga County Airport there were 9 employees in 2012. The combined salary of these employees was $689,313 for an average of $75,590 per employee. This does not include an additional $512,065 expended on controlled services, which is essentially work charged to the Airport by other County departments for legal, accounting, and other overhead-type services. Personnel Expenses have declined over the past several years from a high $860,836 in 2009 to $689,313 in 2012. However, if both expense categories are combined, it can be shown that there has been very little decline in the overall cost of personnel and County controlled services costs since 2009: Expense Category 2009 2010 2011 2012

Personnel Expenses $860,836 $827,363 $800,457 $689,313 Controlled Services $426,558 $364,987 $195,207 $512,065 Combined Totals $1,287,394 $1,192,350 $995,664 $1,201,378



Table 3-2 - Summary of Airport Survey Results

Airport Name Contact Number of

Airport Employees

Number of Airport Maintenance Employees

(Subset of Total)

Snow Removal / Mowing (Who does this - Airport

employees or City/County?)

Total Labor Costs (Benefits Included)

Airport Fuel Concession (FBO

or Airport Operated?)

Akron Fulton International Airport John Hogarth 4-5 (FBO operates the

airport) 4-5 FBO

FBO projects to spend approx.

$250,000/yr. (this is the first year for

FBO)

FBO

Burke Lakefront Airport Khalid Bahhur Approx. 50 12 City Approx. $ 1 M / yr. FBO

Geauga County Airport

Patty Fulup, Airport Manager 2 1 seasonal employee for

mowing

Mowing performed by seasonal employee. Snow removal is contracted out

$22,000 (total for 2012)

Self-serve. Airport Manager orders

fuel.

Kent State University Airport David Poluga

2 full time and one part time staff

members. Approx. 11 student employees.

3 employees perform maintenance with support

from students. The University’s skilled labor shops provide additional

maintenance support.

University performs mowing and snow removal. Occasionally snow removal

is contracted out when equipment is out of service.

$269,474 is budgeted for

FY2013

FBO sells Jet A and 100LL

Lorain County Regional Airport

Doug McConnell (FBO)

FBO operates the airport. Has 6 full-time employees to operate the airport

FBO operates the airport. Approx. 1.5 employees are dedicated to maintenance

FBO performs snow removal and maintenance

FBO spends approx. $125,000 /yr. FBO

Medina Municipal Airport Eric Olsen 8-10 part-time 5 part-time FBO Declined Question

100LL (FBO) Jet A soon to be on-line will be

operated by City

Northeast Ohio Regional Airport David Price

1 full time and 3 part time. Airport manager

is part time. 1 full-time Airport Authority $88,691 for 2012 Operated by

Airport Authority

Portage County Airport

John Siman, Airport Manager 2 (both part-time) 1 part-time

Snow removal is contracted out. Mowing performed by

airport employee $20,000/yr. (est.) FBO sells



Table 3-2 - Summary of Airport Survey Results

Airport Name Contact Number of

Airport Employees

Number of Airport Maintenance Employees

(Subset of Total)

Snow Removal / Mowing (Who does this - Airport

employees or City/County?)

Total Labor Costs (Benefits Included)

Airport Fuel Concession (FBO

or Airport Operated?)

Wadsworth Municipal Airport

Jim Bozigar, Engineer City of

Wadsworth

None (Airport is operated by FBO)

There are no maintenance employees dedicated to the

airport.

FBO performs Snow Removal. City employees

do the mowing.

No labor/benefits costs are budgeted specifically for the airport by the City

FBO operates fuel farm

Willoughby Lost Nation Municipal Airport

Janice Lipscomb, Community

Development Manager

2 (One full-time maintenance employee

and one part-time airport manager)

1 full-time City employees perform snow removal and mowing $129,263/yr FBO

Averages N/A 7.7 3.1 N/A $238,054 N/A

*FBO – Fixed-based operator hired by the airport Sponsor to operate the airport.



2. CUYAHOGA COUNTY AIRPORT STAFF

IGURE 3-1 PRESENTS THE EXISTING ORGANIZATIONAL CHART showing the staff positions of the Cuyahoga County Airport. Figure 3-2 shows the proposed organizational chart, which incorporates desired changes by the County. Staff positions include the Public Works

Director, an Airport Manager (to be discontinued/replaced), a Senior Administrative Officer, a Maintenance Administrator (proposed), an Airport Field Supervisor, four Airport Tech III positions, and three Airport Tech II position. In addition, the salary for the Senior Administrative Officer is no longer being charged to the Airport. Abbreviated descriptions of job responsibilities include the following:

• Airport Manager: Manages the operations of the County Airport, certified in accordance with state and federal aviation regulations. Duties of the Airport Manager are to program current and future maintenance and operational needs; develop operating standards and safety procedures in accordance with Federal Aviation Administration standards and regulations as required; prepare and administer Federal and State grant programs for eligible Capital Improvement programs; negotiate and/or direct the preparation of all contracts, leases, concession and rental agreements and establish related rates, fees, etc. The Airport Manager oversees the use of airport facilities by concessionaires, tenants and transients and directs the preparation of the operating budget, various reports, and statistical records. In addition, the Airport Manager supervises employees classified as field supervisor and assistant airport manager (e.g. - prepares schedules; supervises and instructs subordinate personnel; recommends employee selection, transfer, promotion, and discipline; operates firefighting and building maintenance equipment to demonstrate proper operation). The Airport Manager also serves as a member of various commissions and boards representing airport interests. The current Airport Manager position is vacant. It should also be noted that the Airport's Minimum Standards address the Airport Manager duties directly by position, with duties assigned for lease review, enforcement of compliance with Minimum Standard, regulation of vehicular traffic, handling of lost articles, setting requirements for special events, approval of advertising, screening of prospective FBOs, and a number of other activities.

• Senior Administrative Officer: Assists director, deputy director or social program

administrator to plan, direct and coordinate a division, sub-division or program with a budget greater than $30 million. The Officer develops and implements policies and procedures for division, sub-division or program; interprets laws, rules and regulations related to division, sub-division or program activities; assures that all activities are within relevant statutes and regulations; recommends and assists with the development of department policies; prepares budget and approves and recommends budget expenditures; prepares necessary county, state and federal reports; and processes financial documents. The Sr. Administrative Officer supervises subordinate staff; assigns and prioritizes work; evaluates employee performance; provides training and instruction to staff; reviews and approves employee leave requests; ensures work is performed according to established standards; and recommends employee selection, transfer and discipline. Direct wage level: $36.16/hour. This position is not charged to Airport any longer.

F



Cuyahoga County Dept. of Public WorksDirector

Cuyahoga County AirportManager (vacant)

Sr. Administrative Officer (moved)

Airport Field Supervisor

Airport Operations Tech III (4)

Airport Operations Tech II (3)

Maintenance Administrator

Maintenance Superintendent

Figure 3-1 - Existing Organization Chart



Figure 3-2 - Proposed Organization Chart

Cuyahoga County Dept. of Public Works

Director

Maintenance Administrator

Maintenance Superintendent - Airport

(to be posted)

Airport Field Supervisor

Airport OperationsTech III (4)

Airport Operations Tech II (3)



• Maintenance Superintendent - Airports (proposed position): Will manage the operations of the County Airport, certified in accordance with state and federal aviation regulations. Duties are to program current and future maintenance and operational needs; develop operating standards and safety procedures in accordance with Federal Aviation Standards and regulations as required; prepare, with the assistance of other Planning & Finance staff, Federal and State grant programs for eligible Capital Improvement Programs (Projects to be included in the County's Capital Improvement Program); to coordinate the completion of Capital Improvement Projects with the appropriate Design and Construction staff; initiate with other Public Works staff, the negotiations and direct the preparation of all contracts, leases, concessions and rental agreements and establish related fees, etc. This person shall supervise employees at the airport as stated in the essential job functions for the position. The Maintenance Superintendent - Airports shall also serve as a member of various commissions and boards representing airport interests.

• Airport Field Supervisor: Supervises lower level airport operations personnel; plans, assigns and reviews work; prepares work assignment sheets; provides job training and instruction; evaluates employee performance; responds to employee problems; recommends interviews and recommends selection of new employees; and recommends and implements disciplinary procedures. The Airport Field Supervisor coordinates aircraft fire fighting and rescue; leads aircraft accident and incident rescue team; assists in containing and extinguishing fires; operates aircraft crash truck to respond to emergency situations; performs required FAA training for airport operations personnel. The Supervisor also oversees Airport maintenance operations; schedules preventative maintenance of airport vehicle fleet and fire and rescue equipment; oversees maintenance of airport building and grounds; coordinates snow and ice removal; monitors current runway conditions; measures runway friction and maintains record. In addition, the Supervisor coordinates maintenance materials and equipment purchases; performs safety inspections of building facilities and maintenance activities; and observes Airport operations staff to ensure that proper safety precautions are followed. Direct wage level: $22.19/hour.

• Airport Technician III: Maintains safety of airport runway by assessing and transmitting

airport condition reports to flight service; reviewing operations reports and briefings from preceding shifts, NOTAMS and other airfield reports. The Tech III worker makes regular physical inspections of the airfield, runways, taxiways, ramp and construction sites; and monitors runway conditions to identify safety hazards. If needed the Tech III worker performs aircraft rescue and firefighting duties; responds to aircraft incidents and/or crashes on Crash/Fire/Rescue units; operates fire truck and firefighting equipment to extinguish fires; responds to hazardous materials situations to identify and control threat; and uses aircraft extraction tools to rescue victims of aircraft crashes. The Tech III worker also inspects grounds and buildings on foot and in motor vehicle; checks for vandalism, property damage and irregular incidents; under supervision, carries out appropriate wildlife hazard mitigation tactics; secures all gates and destination building; inspects outdoor and indoor lighting; logs and reports any airport policy violations; and escorts emergency, construction and other vehicles approved by higher-level employees. Provides maintenance and cleaning services to maintain airport buildings and grounds. In



the absence of the Field Supervisor or other supervisory personnel, the Tech III serves as a lead worker solely for the purpose of developing a duty roster, if one has not been provided, until other management personnel arrive or contact. Direct wage level: $18.29/hour.

• Airport Technician II: The Tech II position involves the same duties at the Tech III position with the exception that the Tech II does not serve as a lead worker if the Field Supervisor or other supervisory personnel are not present. Direct wage level: 15.51/hour.

Appendix 3-A presents the full descriptions of each worker classification. It should be noted that the Airport Manager resigned on February 25, 2013 and has not been replaced. Instead, the Director of Public Works has taken on the management of the Airport on a part-time basis. It is assumed that the day-to-day operation of the Airport would fall to the Airport Field Supervisor and the Senior Administrative Officer. Without the Airport Manager, and given recent changes in staffing, the direct hourly wages at the Airport total $141.88 (not including benefits). On a standard 2,080-hour year, this would total $295,110 without overtime or multiplier for benefits. 3. WORKFORCE METRICS

NUMBER OF WORKFORCE METRICS WERE DERIVED to provide a comparison of the operations at Cuyahoga County Airport and at other airports in the study region. These metrics attempted to compare factors that should reasonably impact the amount of work

required for maintenance, upkeep, and staffing. The metrics developed for this analysis included the following:

• Number of acres per worker • Number of based aircraft per worker • Number of linear feet of primary runway per worker • Average cost per employee

Other factors that should have a bearing on the need for labor involve the removal of snow and the sale of fuel. Airport sponsors that sell fuel in addition to managing the airport have a greater labor requirement because of the line personnel needed to service aircraft. Where information was available on fuel sales and employment, an average personnel requirement of 4.375 was noted. Similarly, airports that do not rely on third party contractors to remove snow must keep more personnel and equipment on hand to perform those tasks when needed. The average employment for airports that perform their own snow removal is 13.6. If Burke Lakefront is removed from the snow removal calculation, the average employment level drops to 6.0. By contrast, airports that have snow removal performed by third parties have an average employment level of 2.375. Table 3-3 presents a comparison of metric averages from the sample pool of airports versus the Cuyahoga County Airport workforce metrics. As shown, Cuyahoga County workforce averages look better than the combined averages of the other 10 airports, employing fewer

A



workers per acre, fewer workers per based aircraft, and fewer workers per linear foot of primary runway length. However, when Burke Lakefront Airport, with 50 workers, is removed from the averages, the remaining nine airports show significantly lower workforce metrics than Cuyahoga County Airport.

Table 3-3 - Workforce Metrics Comparisons

Metric Cuyahoga County Other Airports (Ave) Without Burke* Number of Workers 8 7.7 3 Acres per Worker 80 55 156 Based Aircraft per Worker 28.13 7.14 21.33 Runway Feet per Worker 638' 541' 1,468' Average Cost per Worker $75,590 $30,916 $41,872 * These metrics remove Burke Lakefront, which skewed the averages (except for costs) upward in the previous column. When compared to the non-Burke averages, it can be shown that Cuyahoga County Airport has more employees per acre (1.95 times as many); fewer employees per based aircraft (24 percent fewer), and more employees per linear foot of primary runway (2.3 times as many). The cost per worker at Cuyahoga County Airport is 2.4 times the average of the survey airports and 1.8 times the survey airport average without Burke Lakefront. It can be concluded that the inclusion of Burke Lakefront in this analysis is inappropriate because of its subsidy from Hopkins International. This subsidy and shared operation makes it difficult to assign costs and labor specifically to Burke Lakefront. 4. THIRD PARTY MANAGEMENT OPTION

OME AIRPORTS HAVE FOUND THAT IT IS more cost-effective to contract the management and operation of their facilities from private operators. Under this option, the County would contract with an FBO to provide management and operational personnel for the Airport.

The County would still be required to provide legal and other City services to the Airport under General Administration, but the actual day-to-day operation and management at the Airport would be undertaken by the FBO. As the FBO must staff the facility for its own business purposes, it could also provide watchful management of the Airport for the County, including:

• Snow Removal • Mowing • Daily Airport inspection • Minor maintenance • Apron and Itinerant Ramp management • Reporting to County and attendance at Departmental Meetings • Interaction with FAA Control Tower Operations

These and other tasks would be assigned to an FBO. By using personnel already located at the Airport, the County may be able to save on labor costs using this method.

S



The obvious first choice for negotiating an FBO operations and management agreement would be with the current FBO - Cleveland Jet Center. Initial discussions with a representative from the Cleveland Jet Center were undertaken. From those talks, it was learned that the FBO is open to potential negotiations with the County on this issue. Because there are management and ownership layers involved, a formal process could be initiated to determine if the FBO could provide operation and management services on a cost-competitive basis. 5. CONCLUDING OBSERVATIONS

NE CAVEAT THAT SHOULD BE STATED IS that every airport is different and operating conditions can influence the need for labor. Generalizations concerning other airport operating characteristics may or may not apply, given the market and airport clientele.

For example, Cuyahoga County Airport has high-end clientele (Flight Options, Eaton, Progressive, etc.) that require access, regardless of the weather. The decision to keep runways operational during heavy snow conditions will impact the cost of operation relative to airports that do not choose to continuously plow their airport operations areas. That being said, there are a number of observations that can be made from the data:

• Labor and overhead costs at Cuyahoga County Airport have made up 75 percent of the costs of operating the facility since 2008.

• On an industry-wide basis, these costs are typically between 40 and 60 percent of operating costs at general aviation airports.

• The average cost per worker is higher at Cuyahoga County Airport than at the other 10 sample airports.

• Except for costs, Cuyahoga County Airport appears to have favorable employee metrics when compared to the other 10 sample airports.

• When Burke Lakefront is removed from the data averages, Cuyahoga County Airport has significantly more unfavorable employee metrics - more employees per based aircraft, per acre, and per linear foot of runway length.

• Snow removal appears to have a direct relationship to the number of employees needed (more so than fueling).

Using the metrics from the analysis, it can be shown that without Burke Lakefront included, Cuyahoga County Airport should have between four and six employees (depending upon the metric used). By acreage, the number of employees would be four (640 acres divided by the average of 156 per employee). By based aircraft, the number of employees would be 10.5 (225 based aircraft divided by 21.33). It is believed that the inclusion of Burke Lakefront in this analysis is inappropriate because of its subsidy from Hopkins International. This subsidy and shared operation makes it difficult to assign costs and labor specifically to Burke Lakefront. From a labor cost perspective, Cuyahoga County Airport is 1.8 times the average cost without Burke Lakefront. If Cuyahoga County costs were equal to the $41,872-per-worker average, total labor costs would have been $376,848 in 2012 (9 employees times $41,872), rather than the actual $689,313.

O



From the data, strategies for reducing employee expenses may include the pricing of third party snow removal services. Airports that contracted snow removal services had roughly four fewer employees than airports which removed snow with their own employees. It is understood that the snow removal function is critical to retaining high-end tenants. Thus, if excellent service from a contractor cannot be assured at a lower price, a decision to keep the service in-house could be readily justified. A final observation involved the possible contracting of the entire maintenance and operation of the Airport to an FBO. Logically, discussions would begin with the current FBO. Economies of scale may result from the cross-utilization of staff at the Cleveland Jet Center. The management of the FBO is open to discussion on this matter.

Appendix 3-A:Job Classification Specification

© DMG 1993 Revised 1997

CUYAHOGA COUNTY CLASSIFICATION SPECIFICATION

Class Title: Airport Manager Class Number: 1042322 Pay Grade: 17 Departments: Development, only Classification Function The purpose of this classification is to manage the operations of the County Airport in accordance with state and federal aviation regulations and to supervise employees classified as field supervisor and assistant airport manager. Essential Job Functions

The following duties are normal for this classification. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Manages the operations of a County Airport, certified under and in accordance with state and federal aviation

regulations (e.g. - programs current and future maintenance and operational needs; develops operating standards and safety procedures in accordance with Federal Aviation Administration standards and regulations as required; prepares and administers Federal and State grant programs for eligible Capital Improvement programs; negotiates and/or directs the preparation of all contracts, leases, concession and rental agreements and establishes related rates, fees, etc.; manages the use of airport facilities by concessionaires, tenants and transients; directs the preparation of the operating budget, various reports, and statistical records).

• Supervises employees classified as field supervisor and assistant airport manager (e.g. - prepares schedules; supervises

and instructs subordinate personnel; recommends employee selection, transfer, promotion, and discipline; operates firefighting and building maintenance equipment to demonstrate proper operation).

• Serves as a member of various commissions and boards representing airport interests. Minimum Training and Experience Required to Perform Essential Job Functions

Bachelor's degree in business administration or related field with six years of airport operations experience including three years in a supervisory capacity; or any equivalent combination of training and experience. Additional Requirements No additional license or certification is required. Minimum Physical and Mental Abilities Required to Perform Essential Job Functions

Physical Requirements • Ability to operate a variety of automated office machines including calculator, typewriter, fax, copy machine, and IBM

scan system.

Cuyahoga County Classification Specification 1042322

© DMG 1993 Revised 1997

Supervisory Responsibilities • Ability to assign, review, plan and coordinate the work of other employees. • Ability to provide instruction to other employees. • Ability to recommend the discipline or discharge of other employees. • Ability to recommend the transfer, promotion or salary increase of other employees. Mathematical Ability • Ability to add, subtract, multiply, divide and calculate decimals and percentages and make use of descriptive statistics. Language Ability & Interpersonal Communication • Ability to comprehend a variety of informational documents including financial reports, FAMIS reports, certification

notices, contracts, leases, blueprints, FAA technical reports and other reports and records. • Ability to comprehend a variety of reference books and manuals including Federal Aviation Regulations, Title 14,

airport certification manual, emergency plan manual, FAA advisory circulars, personnel policy manuals, FAA/DOT aircraft rescue fire fighting manuals, etc.

• Ability to prepare correspondence, budgets, forecasts, contracts, leases, grant applications, memos, and other job related

documents using prescribed format and conforming to all rules of punctuation, grammar, diction and style. • Ability manage people and programs, to supervise and counsel employees, to convince and influence others, to record

and deliver information, to explain procedures, to follow instructions. • Ability to use and interpret accounting, personnel, and aviation terminology and language. • Ability to communicate effectively with leasehold tenants, government personnel, FAA personnel, consultants, division

managers, and the general public. Environmental Adaptability • Work is typically performed in an office environment. Cuyahoga County is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the County will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer.

CUYAHOGA COUNTY CLASSIFICATION SPECIFICATION Class Title: Maintenance Superintendent - Class Number: 1042514 - Pay Grade: 15 Dept: Public Works Office Classification Function The purpose of this classification is to administer, manage and supervise the operations and personnel of the Maintenance Department of the Public Works Office; to provide administrative support a Chief Section Engineer. Distinguishing Characteristics This is a management classification with responsibility for planning, directing and controlling the Maintenance section of the Public Works Office under general direction, This class requires the solution of operational, technical, administrative and management problems related to maintenance. The employee is expected meet, consult and collaborate with a Chief Section Engineer to discuss plans, projects, and objectives, and to present solutions to identified concerns. The incumbent exercises discretion in applying policies and procedures to resolve organizational issues and to ensure that assigned activities are completed in a timely and efficient manner. Essential Job Functions The following duties are normal for this classification. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned.

• Administers and manages the operations of the Maintenance department; plans and implements all daily operations at the five yards; coordinates work operations with administration, other departments, contractors and the public; oversees the maintenance of and capital improvements to all Public Works Buildings; participates in matters of safety and security.

• Supervises the assigned unit; assigns and reviews work; recommends hiring, promotions, discharges, and disciplinary actions; documents misconduct; assesses staffing requirements; evaluates training needs and provides instruction; evaluates performance; establishes and promotes employee morale; participates on discipline committee; answers staff questions and provides information and conflict resolution as appropriate.

• Plans and directs snow and ice removal operations for the County; inspects bridges and roadways to assess maintenance and repair needed.

• Evaluates, reviews and recommends budget disbursements for materials, parts, supplies, equipment and tools; reviews daily work distribution, reports, labor and materials costs and work done; approves payroll and all departmental purchases and establishes costs of work needed.

• Reviews and responds to citizen requests and complaints; investigates all grievances within the department; confers with labor attorney on labor/trade, union Issues; plans, coordinates and attends meetings and demonstrations.

Minimum Training and Experience Required to Perform Essential Job Functions Bachelor's degree in Civil Engineering, Public Administration or a related field with six (6) years of related experience; or any combination of education and experience that provides equivalent knowledge, skills and abilities. Additional Requirements Requires a driver's license in the State of Ohio. Minimum Physical and Mental Abilities Required to Perform Essential Job Functions Physical Requirements

• Ability to operate a variety of automated office machines including computers and peripheral equipment.

• Ability to operate a variety of maintenance and construction equipment including scooper, lifts, ladders, survey equipment, safety equipment and peripheral equipment.

Supervisory Responsibilities

• Ability to assign, review, plan and coordinate the work of other employees and to maintain standards.

• Ability to provide instruction to other employees and to 'act on employee problems. • Ability to prepare employee performance evaluations. • Ability to recommend the discipline or discharge of employees. • Ability to recommend the transfer, promotion or salary increase of other employees.

Mathematical Ability

• Ability to understand and apply college level algebra, geometry, calculus and statistics.

Language Ability & Interpersonal Communication

• Ability to perform mid to high level data analysis requiring managing of data and people deciding the time, sequence of operations or events within the context of a process, system or organization. Involves determining the necessity for revising goals, objectives, policies, procedures or functions based on the analysis of data/information and includes performance reviews pertinent to such objectives, functions and requirements.

• Ability to comprehend a variety of informational documents including O.D.O.T. drawings, work orders, employee grievances, job descriptions, forms, plans, maps, legal descriptions, certifications, and reports.

• Ability to comprehend a variety of reference books and manuals including departmental and County personnel policy manual, O.D.O.T manuals; reference manuals, union contracts, specifications, standards, guidelines, and codes.

• Ability to prepare performance appraisals, correspondence, agreements, contracts, work order sheets, plans, estimates, charts, grievance response, injury accent reports, memos and other job related documents using prescribed format and conforming to all rules of punctuation, grammar, diction and style.

• Ability to supervise and counsel employees, convince and influence others, to record and deliver information, to explain procedures, to follow instructions.

• Ability to develop and maintain effective working relationships with a variety of individuals within and outside the Department.

• Ability to use and interpret maintenance, legal; human resource terminology and language.

• Ability to communicate with staff, directors of other sections, consultants, departmental employees, and administrators.

Environmental Adaptability

• Work is typically performed in an office environment and in the field.

Cuyahoga County is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the County will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer.

© DMG 1993


Class Title: Senior Administrative Officer Class Number: 1052122 Pay Grade: 13 Departments: All departments Classification Function The purpose of this classification to assist a director, deputy director or social program administrator plan, direct and coordinate a division, sub-division or program with a budget greater than $ 30 million. Essential Job Functions

The following duties are normal for this classification. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Assists director, deputy director or social program administrator plan, direct and coordinate a division, sub-division or

program with a budget greater than $ 30 million (e.g.- develops and implements policies and procedures for division, sub-division or program; interprets laws, rules and regulations related to division, sub-division or program activities; assures that all activities are within relevant statutes and regulations; recommends and assists with the development of department policies; prepares budget and approves and recommends budget expenditures; prepares necessary county, state and federal reports; processes financial documents).

• Functions as director’s, deputy director’s or social program administrator’s liaison to other County departments,

divisions and public and private entities (e.g.- responds to written inquiries and complaints; prepares and delivers speeches regarding division activities).

• Supervises subordinate staff (e.g.- assigns and prioritizes work; evaluates employee performance; provides training and

instruction to staff; reviews and approves employee leave requests; ensures work is performed according to established standards; recommends employee selection, transfer and discipline).

Minimum Training and Experience Required to Perform Essential Job Functions

Bachelor's degree in business administration or related field with nine years of administrative experience; or any equivalent combination of training and experience. Additional Requirements No special license or certification is required. \ Minimum Physical and Mental Abilities Required to Perform Essential Job Functions

Physical Requirements • Ability to operate a variety of automated office machines including computer terminal, calculator, copier, fax, etc. Supervisory Responsibilities • Ability to assign, review, plan and coordinate the work of other employees. • Ability to provide instruction to other employees. • Ability to recommend the discipline or discharge of employees.


© DMG 1993

• Ability to recommend the transfer, promotion or salary increase of employees. Mathematical Ability • Ability to add, subtract, multiply, divide, calculate decimals and percentages and apply the principles of descriptive

statistics. Language Ability & Interpersonal Communication • Ability to comprehend a variety of informational documents including contracts, purchase orders, blueprints, job

applications, statistical reports, budget reports, personnel actions, grant applications, time sheets, and other reports and records.

• Ability to comprehend a variety of reference books and manuals including personnel policy manuals, State guidelines,

technical periodicals, and Federal regulations. • Ability to prepare Board of County Commissioners actions, correspondence, budgets, performance appraisals,

contracts, memos, statistical reports, and other job related documents using prescribed format and conforming to all rules of punctuation, grammar, diction and style.

• Ability to manage people and programs, to supervise and counsel employees, to convince and influence others, to

record and deliver information, to explain procedures, and to follow instructions. • Ability to use and interpret legal and governmental business terminology and language. • Ability to communicate effectively with clients, subordinates, supervisors, contractors, elected officials, other County

and State personnel, consultants and the general public. Environmental Adaptability • Work is typically performed in an office environment. Cuyahoga County is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the County will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer.

© DMG 1993 Proposed Revised September 1999


Class Title: Airport Field Supervisor Class Number: 1042314 Pay Grade: 10 Departments: Development, only

Classification Function The purpose of this classification is to supervise lower level airport operations personnel and oversee field operations of the County Airport including aircraft fire fighting and rescue service, airport safety inspections and building and grounds maintenance. Essential Job Functions

The following duties are normal for this classification. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Supervises lower level airport operations personnel (e.g.- plans, assigns and reviews work; prepares work assignment

sheets; provides job training and instruction; evaluates employee performance; responds to employee problems; recommends interviews and recommends selection of new employees; recommends and implements disciplinary procedures).

• Coordinates aircraft fire fighting and rescue (e.g.- leads aircraft accident and incident rescue team; assists in containing

and extinguishing fires; operates aircraft crash truck to respond to emergency situations; performs required FAA training for airport operations personnel).

• Oversees airport maintenance operations (e.g.- schedules preventative maintenance of airport vehicle fleet and fire and

rescue equipment; oversees maintenance of airport building and grounds; coordinates snow and ice removal; monitors current runway conditions; measures runway friction and maintains record).

• Coordinates maintenance materials and equipment purchases (e.g.- maintains purchasing records for maintenance

materials and equipment; prepares specifications for replacement equipment; communicates with contractors or vendors).

• Performs safety inspections of building facilities and maintenance activities (e.g.- inspects boiler gauges for safe

readings; observes airport operations staff to ensure that proper safety precautions are followed). Minimum Training and Experience Required to Perform Essential Job Functions

Completion of technical school program in building trades with three years of airport operations experience including one year of experience in a lead worker capacity; or any equivalent combination of training and experience. Additional Requirements Requires an Ohio Class B Commercial Driver's License with air brakes designation and Hazardous Materials First Responder Certificate.



Minimum Physical and Mental Abilities Required to Perform Essential Job Functions

Physical Requirements • Ability to operate a variety of automated office machines including typewriter, copier and telephone. • Ability to operate a variety of motorized vehicles and equipment including a tractor, lawn mower, dump truck and pick-

up truck. • Ability to use a variety of building trades tools including mechanic's tools, carpentry tools, plumber's tools and

diagnostic equipment. • Ability to use specialized equipment including a runway scan system, Tapley friction meter, refractometer and fire

fighting equipment. Supervisory Responsibilities • Ability to assign, review, plan and coordinate the work of other employees. • Ability to provide instruction to other employees. • Ability to recommend the discipline or discharge of other employees. • Ability to recommend the transfer, promotion or salary increase of other employees. Mathematical Ability • Ability to add, subtract, multiply, divide, calculate decimals and percentages and make use of the principles of basic

algebra. Language Ability & Interpersonal Communication • Ability to comprehend a variety of informational documents including operations checklist, crashtruck checklist,

assignment sheets, irregularity reports, invoices, payroll documents, blueprints and other reports and records. • Ability to comprehend a variety of reference books and manuals including personnel policy manuals, vehicle parts and

technical manuals, aircraft certification manuals, aircraft rescue and fire fighting manuals and fire service training manual.

• Ability to prepare payroll documents, attendance records, airport self-inspection, irregularity reports, vehicle

maintenance records, work assignment sheets, performance evaluations, correspondence and other job related documents using prescribed format and conforming to all rules of punctuation, grammar, diction and style.

• Ability to supervise and counsel employees, to convince and influence others, record and deliver information, to

explain procedures, to follow instructions. • Ability to use and interpret aviation, electrical and mechanical terminology and language. • Ability to communicate with the supervisors, airport operations staff, vendors, contractors, customers, tenants and the

general public.



Environmental Adaptability • Work is typically performed in an office environment. • Work may be performed outdoors in varying weather conditions. • Work involves responding to emergency situations. Cuyahoga County is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the County will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer.

© The Archer Company April 10,2009


Class Title: Airport Operations Technician III Class Number: 1042313 Pay Grade 5 Departments: Development, only Classification Function The purpose of this classification is to maintain safety of airport runway and to maintain safety and security of airport grounds and buildings and serves as a lead worker in absence of the Field Supervisor or other supervisory personnel. This classification requires three years of acceptable performance as an Airport Operations Technician II. Essential Job Functions

The following duties are normal for this classification. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Maintains safety of airport runway (e.g.- takes field measurements, assesses and transmits airport condition reports to

flight service; reviews operations’ reports and briefings from preceding shifts, NOTAMS and other airfield reports; makes regular physical inspections of the airfield, runways, taxiways, ramp and construction sites; monitors runway conditions to identify safety hazards).

• Performs aircraft rescue and firefighting duties (e.g.- responds to aircraft incidents and/or crashes on Crash/Fire/Rescue

units; operates fire truck and fire fighting equipment to extinguish fires; responds to hazardous materials situations to identify and control threat; uses aircraft extraction tools to rescue victims of aircraft crashes).

• Maintains security of airport grounds and buildings (e.g.- inspects grounds and buildings on foot and in motor vehicle;

checks for vandalism, property damage and irregular incidents; under supervision, carries out appropriate wildlife hazard mitigation tactics; secures all gates and destination building; inspects outdoor and indoor lighting; logs and reports any airport policy violations; escorts emergency, construction and other vehicles approved by higher-level employees).

• In the absence of the Field Supervisor or other supervisory personnel, serves as a lead worker solely for the purpose of

developing a duty roster, if one has not been provided, until other management personnel arrive or contact. • Responds to reports of fire, break-in or unusual incidents (e.g.- receives information regarding location and nature of

incident; assesses situation and ensures that appropriate safety and law enforcement personnel have been notified; investigates incident; under supervision, and commiserate with any required training and/or certificates, performs airport/aircraft fire rescue and emergency medical technician duties).

• Provides maintenance and cleaning services to maintain airport buildings and grounds (e.g.- repairs fencing and other

airport structures; performs minor construction work with runways, ramps and field areas; sweeps and mops floors; vacuums carpeting; cleans bathrooms; cleans windows; mows lawns; removes snow and ice).


Vocational and technical training in maintenance trades with four years of safety and security experience, including three years as an Airport Operations Technician II. Additional Requirements Ohio Commercial Driver's “License Class B” with a current medical certificate; AAAE Basic Aircraft Rescue Fire Fighting Certificate; Hazardous Materials First Responder Certificate


© The Archer Company April 10, 2009


Physical Requirements • Ability to operate a variety of communications equipment. • Ability to operate various pieces of heavy equipment including fire truck, dump truck, front-end loader and tractor. • Ability to operate various grounds maintenance equipment including lawn mower, snow blower and snow plow. Mathematical Ability • Ability to add, subtract, multiply, divide and calculate decimals and percentages. Language Ability & Interpersonal Communication • Ability to comprehend a variety of informational documents including special bulletins and other reports and records. • Ability to comprehend a variety of reference books and manuals including security manuals, snow removal manuals,

firearms manuals, airport standards of procedure. • Ability to prepare duty reports, security reports, landing and take-off register and other job related documents using

prescribed format and conforming to all rules of punctuation, grammar, diction and style. • Ability to record and deliver information, to explain procedures, to follow instructions. • Ability to use and interpret building maintenance and air traffic control terminology and language. • Ability to communicate with supervisory personnel, other County employees and the general public. Environmental Adaptability • Work is typically performed outdoors in varying weather conditions and requires responding to emergency situations. Cuyahoga County is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the County will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer.



Class Title: Airport Operations Technician II Class Number: 1042312 Pay Grade 4 Departments: Development, only Classification Function The purpose of this classification is to maintain safety of airport runway and to maintain safety and security of airport grounds and buildings. This classification requires one year of acceptable performance as an Airport Operations Technician I. Essential Job Functions

The following duties are normal for this classification. These are not to be construed as exclusive or all-inclusive. Other duties may be required and assigned. • Maintains safety of airport runway (e.g.- takes field measurements, assesses and transmits airport condition reports to

flight service; reviews operations’ reports and briefings from preceding shifts, NOTAMS and other airfield reports; makes regular physical inspections of the airfield, runways, taxiways, ramp and construction sites; monitors runway conditions to identify safety hazards).

• Performs aircraft rescue and firefighting duties (e.g.- responds to aircraft incidents and/or crashes on Crash/Fire/Rescue

units; operates fire truck and fire fighting equipment to extinguish fires; responds to hazardous materials situations to identify and control threat; uses aircraft extraction tools to rescue victims of aircraft crashes).

• Maintains security of airport grounds and buildings (e.g.- inspects grounds and buildings on foot and in motor vehicle;

checks for vandalism, property damage and irregular incidents; under supervision, carries out appropriate wildlife hazard mitigation tactics; secures all gates and destination building; inspects outdoor and indoor lighting; logs and reports any airport policy violations; escorts emergency, construction and other vehicles approved by higher-level employees).

• Responds to reports of fire, break-in or unusual incidents (e.g.- receives information regarding location and nature of

incident; assesses situation and ensures that appropriate safety and law enforcement personnel have been notified; investigates incident; under supervision, and commiserate with any required training and/or certificates, performs airport/aircraft fire rescue and emergency medical technician duties).

• Provides maintenance and cleaning services to maintain airport buildings and grounds (e.g.- repairs fencing and other

airport structures; performs minor construction work with runways, ramps and field areas; sweeps and mops floors; vacuums carpeting; cleans bathrooms; cleans windows; mows lawns; removes snow and ice).


Vocational and technical training in maintenance trades with two years of safety and security experience, including one year as an Airport Operations Technician I. Additional Requirements Ohio Commercial Driver's “License Class B” with a current medical certificate; AAAE Basic Aircraft Rescue Fire Fighting Certificate




Physical Requirements • Ability to operate a variety of communications equipment. • Ability to operate various pieces of equipment including fire truck, dump truck, front-end loader and tractor. • Ability to operate various grounds maintenance equipment including lawn mower, snow blower and snow plow. Mathematical Ability • Ability to add, subtract, multiply, divide and calculate decimals and percentages. Language Ability & Interpersonal Communication • Ability to comprehend a variety of informational documents including special bulletins and other reports and records. • Ability to comprehend a variety of reference books and manuals including security manuals, snow removal manuals,

firearms manuals, airport standards of procedure. • Ability to prepare duty reports, security reports, landing and take-off register and other job related documents using

prescribed format and conforming to all rules of punctuation, grammar, diction and style. • Ability to record and deliver information, to explain procedures, to follow instructions. • Ability to use and interpret building maintenance and air traffic control terminology and language. • Ability to communicate with supervisory personnel, other County employees and the general public. Environmental Adaptability • Work is typically performed outdoors in varying weather conditions and requires responding to emergency situations. Cuyahoga County is an Equal Opportunity Employer. In compliance with the Americans with Disabilities Act, the County will provide reasonable accommodations to qualified individuals with disabilities and encourages both prospective employees and incumbents to discuss potential accommodations with the employer.

Chapter 4: Airport Property Development



Airport Property Development

LAND DEVELOPMENT ANALYSIS WAS PERFORMED TO DEMONSTRATE the benefits for the development of currently non-leased land owned by the Airport. Utilizing reasonable absorption rates for commercial property in the area, and outlining areas of non-leased

property on the airport, a timeframe for development was estimated. It is important to note that the schedule represents an average per year estimate for development. 1.1 Description of Airport Property

Located 12 miles east of downtown Cleveland, the Cuyahoga County Airport sits on the border of Richmond Heights, Highland Heights, and Willoughby Heights. The Airport covers a total area of 640 acres, and is surrounded by residential and commercial property types. Figure 4-1 depicts the Airport's properly boundary, and presents a graphic illustration of aviation and non-aviation land use. Areas shaded in blue that can be classified as non-aviation land use make up the eastern, western, and northern areas of Airport property.

The developed eastern section of Airport property consists of 120 acres that are leased to the Airport Greens Golf Course, and is surrounded by local residential housing. The land is primarily used for buffer space at the end of the runway and does not have building structures

A



located on it. The Airport property north of the terminal and ramp area across the Curtiss Wright Parkway is currently used for office and recreational activities. This area is surrounded by commercial and residential property to the north and west. The western non-aviation use Airport property consists of 93 acres of Runway Protection Zone and buffer space for the end of the runway. This area is currently not leased to any individual, and has no building structures on it.

Developable Land Developable property designated as aviation-use describes areas that have the potential for airfield access. These areas require hangar development or an aviation-related business to be considered compatible with the aviation land use designation. In some cases, additional taxiway or apron extensions could be needed to attain runway access. Non-aviation land use describes areas without airfield access. For these areas, development possibilities should consist of appropriate uses that are compatible with an airport environment. Industrial development (manufacturing, warehousing, distribution, assembly, or production activity) is considered highly compatible for non-aviation airport property development, partially due to the capability of these entities to absorb the noise impacts from airport activity. Commercial/Retail development (office buildings, commerce parks, restaurants, franchise and specialty goods outlets) are also considered compatible development for airport activities, although these areas are impacted more by airport-related noise than industrial development due mostly to the human activities there. Non-compatible new development would typically include anything characterized as a residential area. This includes homes, schools, churches, community centers, recreation/sports facilities, daycare centers, nursing and assisted living facilities, and other uses that are generally enjoyed as quality-of-life-enhancing amenities. These areas are the least compatible with airport-related noise due to the fact that people live and sleep in these buildings. In addition, safety concerns for both property owners and airport users should limit the amount of new residential land use in the near-airport approach areas. At Cuyahoga County Airport, the total area of developable land consists of the following acreages:

• Aviation Use 54.6 Acres • Non-Aviation Use 88.7 Acres • Total 143.3 Acres

The land classified as developable aviation-use consists of two areas. From Figure 4-1, the 14.7 acres extending along the Curtiss Wright Parkway, to the northwest of the MBNA Hangar leased area, is currently un-leased and available for development. This area currently has access to the Curtiss Wright Parkway, but an extension of the apron area would be necessary to make the area more marketable. In the southern portion of aviation-use property, the 39.9 acres partially surrounding the C.C. Hangar leased area is available for development. Additional hangar structures could potentially be constructed in this area, expanding the complex connected off Avion Park Drive.



For non-aviation land use, there are three main areas available for development. On the eastern portion of the Airport, the 38.7 acre parcel does not extend into the Runway Protection Zone for Runway end 6 and is currently un-leased. The property has road access via Richmond Road, and is adjacent to residential homes. On the northern portion of the Airport, a 32.7 acre parcel is surrounded on three sides by Richmond Road, Swetland Court, and the Curtiss Wright Parkway. This developable non-aviation land use properly is currently un-leased, and located next to the Horizon County Airport Group building. Also running alongside the Curtiss Wright Parkway, and situated west of the Airport Greens Golf Course, is the 17.3 acre portion of developable non-aviation related property. The northern portion of this parcel connects to White Road, furthering its ease of access. 1.2 Land Absorption The absorption rate of a specific area refers to the total change in occupied space over a given period of time. In total, there are 143.3 acres of developable land on Airport property that is not currently leased to any individual. In order to create a schedule outlining possible future development for Cuyahoga County Airport, it is important to take note of the area's market conditions to assess the demand for developable property. In a healthy real estate market, demand for leased property will be higher than areas undergoing a market contraction in real estate. Market Conditions The Cleveland real estate market has been slowly recovering from the 2008 economic downturn. Over the last five years, the total rentable building area currently under construction in

Cleveland has risen from 78,759 s.f. in the third quarter of 2008 to 846,512 s.f. in the first quarter of 2013 (Figure 4-2). This represents a 975 percent increase in commercial building construction. Another key indicator to gauge the level of demand for new development in the Cleveland area is in construction starts and deliveries. Construction starts refers to the total number of buildings that began construction during a certain period of time. Deliveries refer to

buildings that complete Figure 4-2 - Cleveland Area Construction History. Source: CoStar Realty Information, Inc.



construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. The data for construction starts and deliveries show positive movement in the past five years. From the third quarter in 2008 to the third quarter of 2010 there was only 29,541 sq ft of new construction started in the city of Cleveland. However, in the first quarter of 2012 to the second quarter of 2013, the total new construction totaled 390,511 sq ft of new buildings. Similarly,

during the second quarter of 2013, deliveries showed a five year high of 846,512 sq ft of building completions (Figure 4-3). This data indicates that there is a growing demand for new development in the Cleveland area. While city-wide data is an important indicator of economic health, it is also necessary to examine the real estate market specific to Cuyahoga County Airport. For this study, the area within a five mile radius of the Airport was examined.

Table 4-1 - Commercial Development Within a 5 Mile Radius of CGF

Building Address Type Building Sq. Ft. Status

6030 Mayfield Rd Retail 7,956 Under Construction 780 Alpha Dr Retail 6,000 Under Construction 35020 Chardon Rd Office 22,000 Proposed 35030 Chardon Rd Office 35,000 Proposed N Commons Blvd Office 50,000 Proposed 18235 Euclid Ave Retail 5,000 Proposed 30555 Euclid Ave Retail 2,500 Proposed 1125 E 260th St Industrial 71,337 Proposed 2821 Bishop Rd Retail 4,200 Proposed Eddy Rd Office 30,000 Proposed 22293 Euclid Ave Retail 7,000 Proposed 32801 Euclid Ave Retail 23,000 Proposed

Figure 4-3 - Cleveland Area Construction Starts and Deliveries. Source: CoStar RealtyInformation, Inc.



Table 4-1 - Commercial Development Within a 5 Mile Radius of CGF

Building Address Type Building Sq. Ft. Status

1507 Green Rd Retail 12,778 Proposed

Total -- 276,771 --

Source: CoStar Realty Information, Inc. As shown, there are 11 commercial properties proposed and two commercial ventures currently under construction within a five mile radius of Cuyahoga County Airport. These developments total 276,771 sq ft of new building space, and indicate a demand for new leased property in the area.

Potential Development Schedule There are many factors that combine to create a demand for new property development. Given the healthy economic climate surrounding the real estate development nearby the Airport, and also for Cleveland as a whole, it is reasonable to assume an absorption rate at Cuyahoga County Airport between 10 and 20 percent over the next 10 years. To put this in perspective, a 20 percent absorption over 10 years would require 50 years for a full build-out. Similarly, a 10 percent absorption over 10 years would require 100 years to completely build out the property.



Thus, a conservative estimate of 15 percent was used for this analysis. With 143.3 acres of developable land, this equates to the development of roughly 2.15 acres per year. Further, it was assumed that the County would not sell the property, but rather would lease the land at rates discussed in Chapter 1 of this report. Chapter 5 discusses the financial implications of developing the unused aviation and non-aviation property at Cuyahoga County Airport.

Chapter 5: Financial Projections



Financial Projections

HIS CHAPTER IDENTIFIES HISTORICAL REVENUES AND EXPENSES attributable to Cuyahoga County Airport and projects those revenues and expenses to the fiscal year 2022. Two projections are made in this analysis - one for the status quo and one that considers

potential changes to the Airport's operation. The status quo projection only considers a baseline scenario with no revenue enhancement projects or cost cutting measures included. It does not consider an expansion or change of the Airport's operation beyond those already present. The "Alternative Forecast of Revenues" on the other hand, considers the potential impacts of a number of recommendations made in this report. In order to properly frame these financial statements and projections, this section is organized to present the following:

• Historical Revenues and Expenses • Baseline Forecast of Revenues and Expenses • Alternative Forecasts of Revenue and Expenses

1. HISTORICAL REVENUES AND EXPENSES

UYAHOGA COUNTY AIRPORT IS OWNED AND OPERATED by Cuyahoga County. The Airport's operation and maintenance is the responsibility of the Department of Public Works under the auspices of the Board of County Commissioners.

Information concerning historical revenues and expenses for the Airport was provided by the County for 2008 through 2012 and budget information for 2013. The most recent five year data history was used because it includes the national recession impacts and represents the relevant historical financial performance of the Airport. In addition this data is most applicable for financial forecasting because it gives some indication of recent actual trends. Table 5-1 presents the historical revenue and expenses as documented in the County's revenue and expense spreadsheets. Many of the revenue and cost categories represent aggregated totals of several accounting sub-categories. Revenues from Airport operations are derived from the following:

• Building Rentals: This category includes rent from hangars and buildings owned by the Airport.

• Ground Rent: This includes land leased for aviation and non-aviation related activity. • Fuel Flowage Fees: These revenues are derived from the fuel flowage fees for both Jet

A and 100LL Avgas. • Parking & Landing Fees: Revenue collected from landing and parking fees • Concession/Privilege Fees: This includes concession privilege fee for businesses

offering services at the Airport. • Other Revenues: This category captures all revenue that is not attributable to the other

categories.

T

C



Airport Operating Expenses were made up of the following cost items:

• Personnel Expenses: This includes salaries and benefits of Airport workers. • Controlled Services: This service charge covers the costs of County personnel on

Airport administrative issues such as legal, engineering, etc. It is essentially an overhead cost for the County to operate the Airport.

• Materials and Supplies: This expense category includes office/building supplies, postage, machinery, and minor equipment, etc.

• Maintenance and Repairs: Services or supplies purchased to operate, repair, and maintain property owned or used by the Airport.

• Phone & Utilities: This includes costs for Telecommunications, Gas, Water, and Electric Utilities.

• Taxes & Assessments: Real estate taxes that are paid to Cuyahoga County as well as Lake County for improved parcels at the County Airport. (A portion of the Airport is located in Lake County).

• Miscellaneous Expenses: This category captures all expenses that are not attributable to the other categories.

Not included in these operating revenue and expense statements are the annual contributions to the Airport from the County (General Fund subsidies), State, and the FAA for capital development. Those contributions are not considered operating revenues by this analysis. Rather, this analysis is geared to identify the actual revenue producing ability of the Airport, along with its actual operating costs. For purposes of the baseline financial forecasts, the ability of the Airport to generate revenues and cover operating costs is the primary concern. In this regard, surplus operating revenues can be used to pay the local share of capital development or other non-operating costs.

Table 5-1 - Historical Revenues and Expenses ITEM 2008 2009 2010 2011 2012

Operating Revenues: Building Rentals $250,170 $262,995 $231,260 $216,889 $269,609 Ground Rent $219,935 $171,193 $159,684 $169,180 $201,429 Fuel Flowage Fee $120,194 $108,105 $94,749 $92,561 $103,040 Parking & Landing Fees $40,343 $30,956 $33,333 $15,367 $32,174 Concession Fees $217,259 $214,476 $211,111 $143,000 $203,669 Other Revenues $48,287 $37,161 $60,296 $66,156 $26,425 Total Operating Revenues $896,188 $824,886 $790,433 $703,153 $836,346

Operating Expenses:

Personnel Expenses $837,529 $860,836 $827,363 $800,457 $689,313 Controlled Services $670,568 $426,558 $364,987 $195,207 $512,065 Supplies & Materials $128,664 $53,884 $67,739 $70,402 $93,915 Maintenance & Repairs $110,133 $60,294 $78,161 $44,686 $41,594



Table 5-1 - Historical Revenues and Expenses ITEM 2008 2009 2010 2011 2012

Phone & Utilities $106,085 $91,839 $95,631 $83,577 $84,846 Taxes & Assessments $120,159 $120,841 $135,432 $199,041 $134,473 Miscellaneous Expenses $35,220 $3,777 $33,857 $70,820 $11,448 Total Operating Expenses $2,008,358 $1,618,029 $1,603,170 $1,464,190 $1,567,654

Total Net Revenues & Expenses ($1,112,170) ($793,143) ($812,737) ($761,037) ($731,308)

As shown, the Airport has experienced deficits in each of the past five years. It can also be noted that total operating Revenues from 2009 through 2011 have not be able to cover Personnel Expenses. 2. BASELINE FORECAST OF REVENUES AND EXPENSES

HE BASELINE FORECAST PRESENTS A STATUS QUO look at revenues and expenses, influenced primarily by recent historical activity and current lease agreement language. It does not consider all of the potential changes at the Airport that might occur through

Management actions or in Cuyahoga County's economy that might change the historical trend. To determine the historical trend for most revenue and expense items, the percent increase from 2008 to 2012 was examined to find the average percent change. Typically, an average is used so that any major fluctuation during any one year would not unduly affect the overall trend. Also inputting the baseline forecasts was County budget information for 2013. Assumptions used in developing the baseline forecast included the following:

• Rate of Inflation/Consumer Price Index (CPI): Many leases include escalation clauses that permit the County to increase the lease prices by the rate of inflation (usually measured by CPI). For the forecast, the CPI is used to escalate the prices for revenues and expenses. For this Baseline Forecast, a CPI growth rate of 2.5 percent was used to forecast increases in Building Rentals.

• Building Rentals: The Baseline Forecast utilized existing rental rates for tenant leases.

Leases that have escalation clauses were increased by those escalations. For T-hangar and Office Rental the three year averages of historical revenues were taken and then were increased by the CPI rate of 2.5 percent per year throughout the period. This projection did not assume the filling of vacancies, buildings, or land parcels, and as such, serves as a true baseline or benchmark against which revenue enhancement actions can be measured.

• Three Year Average: Due to the fluctuation of some expense or revenue items from year

to year, the three year averages of the following revenue and expense items were taken to estimate 2013 levels: Fuel Revenues, Parking & Landing Fees, Controlled Services, Supplies & Materials, Maintenance & Repairs, Phone and Utilities, Miscellaneous Expenses. These were then projected to increase by the CPI throughout the planning period.

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• Personnel Expenses: 2013 Airport Budget information was used to calculate personal expenses for 2013. These numbers reflect the reassignment of the Senior Administrative Officer from inclusion in the Airport's budget and the addition of two Airport Technician II positions. The resulting costs were then increase by the CPI throughout the planning period.

• Lease Expiration: The National City Bank lease expires (subleased to Corporate Wings) in 8/31/15. The property has a 18,060 square foot hangar (Hangar 11) and 2 Jet A 12,000 gallon tanks. Ownership of the hangar and property will revert back to the County. If the Airport leases the property to Corporate Wings at the rate of that National City is charging ($102,000/year), it would be a potential net increase of over $77,700 per year in revenue for the County when accounting for property tax.

Drawing on these assumptions, and taking a conservative approach to Airport financial performance, a reasonable Baseline Forecast was developed. The Baseline Forecast of revenues and expenses was projected through the year 2022 and is presented in Table 5-2.



Table 5-2 - Baseline Forecast of Operating Revenues and Expenses

Operating Revenues: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Building Rentals $290,167 $289,388 $321,400 $402,694 $412,008 $419,156 $426,402 $430,509 $435,928 $446,293 Ground Rent $259,849 $264,339 $269,713 $264,094 $274,391 $276,101 $276,600 $281,371 $282,265 $286,606 Fuel Flowage Fee $96,783 $99,203 $101,683 $104,225 $106,831 $109,501 $112,239 $115,045 $117,921 $120,869 Parking & Landing Fees $26,958 $27,632 $28,323 $29,031 $29,757 $30,501 $31,263 $32,045 $32,846 $33,667 Concession Fees $261,700 $266,700 $269,700 $272,700 $275,700 $279,700 $263,700 $267,700 $271,700 $275,700 Other Revenues $27,086 $27,763 $28,457 $29,168 $29,897 $30,645 $31,411 $32,196 $33,001 $33,826 Total Operating Revenues $962,542 $975,025 $1,019,276 $1,101,912 $1,128,583 $1,145,604 $1,141,615 $1,158,865 $1,173,661 $1,196,962

Operating Expense: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Personnel Expenses $793,010 $812,835 $833,156 $853,985 $875,335 $897,218 $919,648 $942,640 $966,206 $990,361 Controlled Services $357,420 $366,355 $375,514 $384,902 $394,524 $404,388 $414,497 $424,860 $435,481 $446,368 Supplies & Materials $77,352 $79,286 $81,268 $83,300 $85,382 $87,517 $89,705 $91,947 $94,246 $96,602 Maintenance & Repairs $54,814 $56,184 $57,589 $59,028 $60,504 $62,017 $63,567 $65,156 $66,785 $68,455 Phone & Utilities $88,018 $90,218 $92,474 $94,786 $97,155 $99,584 $102,074 $104,626 $107,241 $109,922 Taxes & Assessments $137,835 $141,281 $152,767 $172,892 $177,214 $181,644 $186,186 $190,840 $195,611 $200,501 Miscellaneous Expenses $38,708 $39,676 $40,668 $41,685 $42,727 $43,795 $44,890 $46,012 $47,162 $48,341 Total Operating Expenses $1,547,156 $1,585,835 $1,633,435 $1,690,577 $1,732,841 $1,776,163 $1,820,567 $1,866,081 $1,912,733 $1,960,551

Net Operating Revenues (Loss) ($584,614) ($610,811) ($614,160) ($588,665) ($604,259) ($630,559) ($678,952) ($707,215) ($739,072) ($763,589)



3. ALTERNATIVE FORECAST OF REVENUES AND EXPENSES

N ADDITION TO THE BASELINE FORECAST OF revenues and expenses, an Alternative Forecast was developed that examined the possible results of implementing findings of this Operational Review. Recommendations from previous chapters of this report were used to

estimate the potential impact on the finances at Cuyahoga County Airport. This pro forma examines the possibility of increasing revenues via new leases, changes in rates and charges, and collection of bonus rents. These forecasts would also consider reasonable percentage reductions in costs, as discussed with the County. As a part of this process, the potential development of unused aviation and non-aviation land was projected using market rates and assumptions concerning absorption rates for various uses (hangar development, ground rentals for office and/or other similar commercial uses). This analysis draws upon the results of Task 4 and uses the existing deficit as the measure of how much additional development for revenue or how deep the cost cutting would have to be taken in order to break even. The County would then be able to judge whether or not these parameters could be attained under existing constraints such as labor agreements or capital funding limitations (for revenue producing items such as hangar development). 3.1 Forecast Assumptions There were a number of assumptions used in projecting the Alternative Revenue and Expense forecast. Several of the assumptions used simply repeated those already used in the Baseline Forecast of revenues and expenses. These included:

• Rate of Inflation/Consumer Price Index (CPI): For this Baseline Forecast, a CPI growth rate of 2.5 percent was used to forecast increases in categories or leases where escalation clauses use to index inflation.

• Three Year Average: Three year averages of the following revenue and expense items

were taken to estimate 2013 levels: Fuel Revenues, Parking & Landing Fees, Controlled Services, Supplies & Materials, Maintenance & Repairs, Phone and Utilities, Miscellaneous Expenses. These were then projected to increase by the CPI throughout the planning period.

• Lease Expiration: The National City Bank lease expires (subleased to Corporate Wings) in 8/31/15. The property has a 18,060 square foot hangar (Hangar 11) and 2 Jet A 12,000 gallon tanks. Ownership of the hangar and property will revert back to the County. If the Airport leases the property to Corporate Wings at the rate of that National City is charging ($102,000/year), it would be a potential net increase of over $77,700 per year in revenue for the County when accounting for property tax.

Assumptions that were changed for the Alternative Revenue and Expense forecast included the following:

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• Additional Lease Revenue: Chapter 4 of this report outlined the areas available on the Airport for additional lease revenue (143.3 acres). However, it is not assumed that this property will be leased to capacity during the planning period. Rather, there is an absorption rate that was estimated to total 15 percent of the available space by the year 2022 (23.6 acres). Lease rates were estimated to follow the rates and charges recommendations listed in Chapter 1 of this report.

• Privilege Fees: Privilege fees are simply concession fee charges for Fixed Base Operations at the Airport. Leases with Nextant and Cleveland Jet Center spell out the formula for increasing these fees over future periods. These formulas are somewhat confusing if activity decreases over the historical period. However, for the financial forecast, Privilege Fees were increased in the literal manner described in the leases.

• Bonus Rent: The leases call for Bonus Rent of 10 percent of the excess over $12 per square foot for office space and rent more than $5 dollars per square foot for other rented space. It does not appear that charges for bonus rent are being made by the County or paid by the leaseholders. For the Alternative Revenue and Expense forecast, bonus rents were included as additional revenue.

• Fuel Flowage Fees: Leases contain specific amounts for fuel flowage fees and as such, there are different rates being paid by different tenants. The forecast kept this practice while recommending that the County change this process to an Airport-wide, single fuel flowage rate as the leases expire or are renewed.

• Personnel Expenses: The Baseline Forecast of Personnel Expenses was used in the Alternative Revenue and Expense forecast. It is understood that changes to this category either through changing staff assignments or by using a third party to operate the Airport would create changes in the projection numbers. The County can pursue these options as they sit fit.

3.2 Alternative Revenue and Expense Forecast Results Table 5-3 presents a forecast of Alternative Revenue and Expense for Cuyahoga County Airport. As shown, revenues are projected to reach $1,574,815 by 2022 while expenses are projected to reach $1,960,551 in the same time period. Net deficits are anticipated to be reduced during the period as a result of increased lease revenues, privilege fees and bonus rents. While not shown, it is anticipated that the County can alter the existing labor costs either through the reassignment or personnel or the potential use of private enterprise to operate the Airport.



Table 5-3 - Recommended Plan Forecast of Operating Revenues and Expenses

Operating Revenues: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Building Rentals $290,167 $289,388 $321,400 $402,694 $412,008 $419,156 $426,402 $430,509 $435,928 $446,293 Bonus Rent $0 $77,496 $79,434 $81,420 $83,455 $85,542 $87,680 $89,872 $92,119 $94,422

Ground Rent $259,849 $264,339 $269,713 $264,094 $274,391 $276,101 $276,600 $281,371 $282,265 $286,606 Additional Ground Rent $0 $24,526 $50,279 $77,304 $105,649 $135,363 $166,496 $199,102 $233,234 $268,948

Fuel Flowage Fee $96,783 $99,203 $101,683 $104,225 $106,831 $109,501 $112,239 $115,045 $117,921 $120,869 Parking & Landing Fees $26,958 $27,632 $28,323 $29,031 $29,757 $30,501 $31,263 $32,045 $32,846 $33,667 Concession Fees $261,700 $266,700 $269,700 $272,700 $275,700 $279,700 $263,700 $267,700 $271,700 $275,700 Concession Fee Increases $12,838 $12,838 $12,838 $12,838 $13,477 $13,953 $13,953 $13,953 $13,953 $14,483

Other Revenues $27,086 $27,763 $28,457 $29,168 $29,897 $30,645 $31,411 $32,196 $33,001 $33,826 Total Operating Revenues $975,380 $1,089,886 $1,161,827 $1,273,474 $1,331,164 $1,380,461 $1,409,744 $1,461,792 $1,512,967 $1,574,815

Operating Expense: 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Personnel Expenses $793,010 $812,835 $833,156 $853,985 $875,335 $897,218 $919,648 $942,640 $966,206 $990,361 Controlled Services $357,420 $366,355 $375,514 $384,902 $394,524 $404,388 $414,497 $424,860 $435,481 $446,368 Supplies & Materials $77,352 $79,286 $81,268 $83,300 $85,382 $87,517 $89,705 $91,947 $94,246 $96,602 Maintenance & Repairs $54,814 $56,184 $57,589 $59,028 $60,504 $62,017 $63,567 $65,156 $66,785 $68,455 Phone & Utilities $88,018 $90,218 $92,474 $94,786 $97,155 $99,584 $102,074 $104,626 $107,241 $109,922 Taxes & Assessments $137,835 $141,281 $152,767 $172,892 $177,214 $181,644 $186,186 $190,840 $195,611 $200,501 Miscellaneous Expenses $38,708 $39,676 $40,668 $41,685 $42,727 $43,795 $44,890 $46,012 $47,162 $48,341 Total Operating Expenses $1,547,156 $1,585,835 $1,633,435 $1,690,577 $1,732,841 $1,776,163 $1,820,567 $1,866,081 $1,912,733 $1,960,551

Net Operating Revenues (Loss) ($571,776) ($495,950) ($471,608) ($417,103) ($401,677) ($395,701) ($410,823) ($404,288) ($399,766) ($385,736)



Comparison of Revenues and Expenses for Recommended Plan Comparison of the enhanced operating expenses and forecasted levels of enhanced revenues indicates the forecasted financial performance of the Airport through 2022. Table 5-4 presents this comparison.

Table 5-4 - Recommended Plan Revenue v. Expense Comparison

Fiscal Year Operating Revenues Operating Expenses Net Deficit 2013 $975,380 $1,547,156 ($571,776) 2014 $1,089,886 $1,585,835 ($495,950) 2015 $1,161,827 $1,633,435 ($471,608) 2016 $1,273,474 $1,690,577 ($417,103) 2017 $1,331,164 $1,732,841 ($401,677) 2018 $1,380,461 $1,776,163 ($395,701) 2019 $1,409,744 $1,820,567 ($410,823) 2020 $1,461,792 $1,866,081 ($404,288) 2021 $1,512,967 $1,912,733 ($399,766) 2022 $1,574,815 $1,960,551 ($385,736)

Considering operating revenues and expenses, the grand total improvement in financial performance of Cuyahoga County Airport is about $2,167,000 over the baseline scenario. 3.3 Budget Recommendations There are a number of recommendations associated with the budget and how the County charges or pays for services at the Airport. These recommendations are discussed by topic in the following subsections. Privilege Fees As defined, privilege fees are actually concession surcharges that are charged by the County to tenants that are using the Airport on which to conduct business. The tenants charged these fees are Fixed Base Operators or Specialty Aviation Service Operators. The County's participation in the success of businesses on the Airport is entirely appropriate and is a common practice in the aviation industry. Two companies that pay privilege fees include Nextant Aerospace and Cleveland Jet Center. Lease provisions for increasing privilege fees include the following:

• Nextant Aerospace: During the five (5) year period from January 1, 2003, through

December 31, 2007, the concession privilege fee shall be $70,000 per year. The concession privilege fee shall be increased for each successive five (5) year period during the term of this Lease and all renewals thereof by a percentage equal to' the average percentage change (increase or decrease) in recorded operations (take-offs and/or landings) during each of the five (5) years preceding such five (5) year period. For



example, if the average of the percentage change in recorded operations during each of the five (5) years from January 1, 2003 through December 31, 2007 was 11.1 %, then the concession privilege fee for the five (5) year period from January 1, 2008, through December 31,2012 shall be $77,770 The payment of such concession privilege fee shall be made quarterly on the 20th day of the month following the end of each calendar quarter, commencing April 20, 2003, and quarterly thereafter, during each term of this Lease and all renewals thereof.

• Cleveland Jet Center: During the five (5) year period from June 1,2009 through May 31,

2041, the concession privilege fee shall be $77,700 per year. The concession privilege fee shall be increased for each successive five (5) year period during the term of this Lease and all renewals thereof by a percentage equal to the average percentage change (increase or decrease) in recorded operations (take-offs and/or landings) during each of the five (5) years preceding such five (5) year period. For example, if the average of the percentage change in recorded operations during each of the five (5) years from January 1,2007 through December 31,2012 was 11.1%, then the concession privilege fee for the five (5) year period from January 1,2013, through December 31, 2018 shall be $86,247.

Rather than estimate the increase in privilege fees based on activity increases and percentage changes, it is recommended that these changes be based upon a set inflation index. That way, the County is not faced with uncertain levels of revenues if the particular business does not increase its activity during the historical period. Ground Rental Rates Not all Airport property rental rates are equally valuable. Some areas with access to the runway system afford economic opportunities that cannot be reproduced on non-aeronautical parcels, and vice versa. Therefore it is recommended that at least two tiers of ground rental rates be established. The first involves parcels with good ground and airfield access. Those parcels would be valued at $0.23/sf. However, parcels without good internal access or access to the airfield may have a reduced rate, depending upon how much investment will be required to create access infrastructure. For example, if roadways and utilities infrastructure will cost 20 percent of the total development investment, the lease rate could be reduced by 20 percent from $0.23/sf to $0.184/sf. In this manner, allowances for needed infrastructure can be incorporated into the lease structure. Labor Costs To reduce the net deficits, either costs must be reduced or revenues must be increased, or both. Mathematically, labor cost is 75 percent of the entire expense budget. As shown in Table 5-3, even with the revenue enhancement options, there is still a net deficit - mostly attributable to labor costs. Thus, if a breakeven position is to be achieved at the Airport, labor expense is likely to be impacted. This study did not perform any analysis of the efficiency of the Airport's work force. Therefore, no assumptions were made relative to the reduction of the labor force and whether or not the Airport could still operate effectively.



With incomplete information, it would seem that two potential solutions reduce to either keeping the existing work force or using the FBO to operate the facility. The County may have better information on the work needs and requirements associated with the snow removal and mowing at the Airport and may be in a position to make judgments in that area. Lacking that information, it is recommended that some discussions be held with the existing FBO to determine whether or not a less expensive means of operating the Airport could be achieved. Potential Office Space Bonus Rent It does not appear that bonus rent is being charged as specified in lease agreements. The following table presents the amount of bonus rent that could be collected if it were charged. As shown, if all the building office space was rented at the office market space of $15.42 per square foot per year, then the bonus rent (10 percent of rent over $12 per square foot) would be $75,606 dollars. Therefore, it is recommended that bonus rent be collected as specified in lease agreements.

Potential Office Space Building Bonus Rent Office Building Building SF Bonus Rent

Horizon Building 91,160 $31,177 Associates Estates 41,325 $14,133 Curtiss Wright Center I 16,600 $5,677 Curtiss Wright Center II 16,600 $5,677 Curtiss Wright Center III 30,730 $10,510 Curtiss Wright Center IV 24,656 $8,432 TOTALS 221,071 $75,606 County Development of Hangars During the review process, a question came up regarding the financial impact of the County's potential development of hangar area on the Airport. There was a specific location, shown previously in Figure 4-1, that contained 14.7 acres and was targeted for potential development because of its location on the flight line. In answer to that question, a pro forma for the County was identified that incorporates the cost of development, the rental rates, the debt service costs, and other impacts. These other impacts include the potential fuel sales and employment associated with corporate aviation. Assumptions used in the pro forma development process include the following:

• New Conventional Hangar Costs: $75 per square foot • Average Hangar Space per Corporate Jet: 5,000 square feet • New Hangar Rents: $5 per square foot • Debt Service Interest: 3 percent • Fuel Flowage: Assume average jet consumption of 32,000 gallons/year (current CFG

average) • Fuel Flowage Fee: Assume $0.10 per gallon • Average Hours Flown/Year: 400 (200 operations at CFG)



• Employment Density: 1 job for every 2,000 square feet of corporate hangar space.

The total number of hangars that could be developed on the 14.7 acre parcel needs to be analyzed in greater detail than this planning analysis. However, it can be assumed that the area would hold at least 100,000 square feet of hangar space.

Using the assumptions listed above, it can be estimated that each jet will require an average of 5,000 square feet of hangar space. The cost of developing this space is $375,000, with rents averaging about $25,000 annually. At 3 percent interest, debt service associated with each hangar (assuming 100 percent debt funded) would require 20 years to retire. After that time, 100 percent of revenues would go to the County ($25,000 per hangar per year). Further, it could be assumed that each corporate jet would generate a fuel flowage fee of $3,200 for the County. Employment impacts could generally be estimated to total 2.5 per average hangar. Local taxes generated by these employees has not been estimated, however, there would be some return to the County. Obviously, if any of the assumptions were changed, the outcome of the analysis would also be altered. For example, by raising the rental rate to $6 per square foot, the debt service could be paid off four years more quickly (16 years instead of 20). Depending upon the number of hangars developed on the 14.7 acre parcel at the end of the current ramp area, the revenues to the County could vary. For example, if 50,000 square feet of hangar space were developed, it would generate $250,000 per year in rents, 2,000 additional aircraft operations, $32,000 in fuel flowage fees, and would result in 25 new jobs.

Chapter 6: Tenant Survey



Tenant Survey

S A PART OF THE OPERATIONAL REVIEW, we were requested to perform a survey of on-Airport tenants. This survey was taken at a time when the threat of air traffic control tower (ATCT) was scheduled for June 15, 2013. That timeframe has been moved back to

at least the end of the current fiscal year (October 1, 2013). The threat is not over at this time and budget issues for the FAA will likely continue into FY 2014. Thus, the responses from tenants concerning the need for the ATCT at CGF is instructive. Concerns about leases and other Airport issues are also a part of the survey record. 1. SURVEY OF ON-AIRPORT TENANTS 1.1 Survey Design and Timeframe The survey design incorporated questions that are primary to this Operational Review. The consulting team desired to know tenants' opinions concerning the operation of the Airport, its facilities and services, their lease agreements, desired improvements, future plans, and the impact of the potential ATCT closure. The survey was designed for a telephone interview format and consisted of the following nine questions: 1. In your opinion, are there any problems with the way that the Airport is operated? 2. In your opinion, are there any problems with the Airport facilities? Are facilities needed that are not currently available? 3. What services are needed that are not currently provided? 4. What is the County doing right at the Airport? 5. If you could change your lease agreement, what provisions would you alter? 6. Is there anything that the County could do that would cause you to use the Airport more? 7. Looking forward, will you need any additional lease property in the future? Explain: 8. How does the potential Tower Closure impact your operation? 9. Any other comments? The survey was administered over a three week period from May 6th to May 24th. 1.2 Survey Recipients The list of survey candidates was provided by the County and included the following:

Name Affiliation James P. Miller Nextant Aerospace Mark J. O'Donnell Nextant Aerospace Jim Weaver Flight Options Aaron Thayer The Cleveland Jet Center Daniel Frisone Eaton Timothy Bokmuller Progressive Mike Matejka Progressive Jim Shenk Five Star Aviation

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T.J. McManamon Five Star Aviation Brian Safran Pace Aviation Stephen P. Zvada Swagelok Company

In addition, the fire chiefs from Richmond Heights and Highland Heights were interviewed to gain their perspective on how they accommodate emergencies and aircraft incidents at the Airport. Finally, the ATCT air traffic manager was interviewed about their role in providing positive control for the Airport environment. 2. SURVEY RESPONSES

ESPONSES TO THE SURVEY QUESTIONS WERE RECORDED for each survey administered. Those individual/corporate responses are discussed below. At the conclusion of the section, a summary of the responses and their implications concerning the Operational

Review are presented. 2.1 Nextant Aerospace The discussion with Nextant took over an hour and covered a wide range of topics. Nextant is an aircraft manufacturer that remanufactures the Beechjet 400, making it faster and less expensive to operate. The company has the following concerns about the Airport:

• Airport Operation: There is concern about management continuity. Currently operated on "auto pilot." The staff is performing satisfactorily, but this may not work for the long run. The County dropped FAR Part 139 status four or five years ago. There is concern that while the Director of Public Works is smart and engaging, there may be difficulty with technical/aeronautical issues in the future.

• Airport Facilities: There is concern about the future rehabilitation of the Airport's single runway (6-24). Because there is no alternative runway, it is feared that the Airport could be closed for up to three months. This is unacceptable from a business standpoint. One suggestion: during the runway closure, examine the possibility of limited operations from the Airport taxiway.

• Services Needed: It is believed that an Airport Rescue and Fire Fighting (ARFF) capability is needed on the field. This facility was closed three years ago and the responsibilities were handed to Richmond Heights and Highland Heights fire departments. An on-site Airport Manager is needed in the long run.

• Satisfaction: Nextant believes the snow removal service is good and should continue at its current level into the future. Mowing is also timely and well done. The Airport operates fairly well with little attention. Initially, the FBO was not doing well, but they quickly understood the needs of Airport tenants and have improved service significantly.

• Lease Agreements: Nextant favors longer leases that are based on a standard format and set of terms. They do not want economic discrimination and believe standard language would reduce or eliminate the variance in terms and prices for tenants.

• Airport Improvements Leading to Increased Activity: Nextant desires a longer runway - up to 6,500 feet. This would permit them to add larger aircraft to their business model. They believe that it would be beneficial for all tenants and the Airport to be capable of

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accommodating the larger Gulfstream aircraft, along with the regional jets such as the Embraer ERJ and Canadair CRJ.

• Additional Leases: Nextant would not consider building a new hangar, but would consider adding buying or leasing an existing hangar if one came available.

• Potential Tower Closure: Nextant believes that the loss of the Tower would result in a significant loss of tenants. The flight school activity will not mix well with the corporate activity unless a tower is available. Closing speeds for the jet aircraft are significant when mixed with slower propeller-driven aircraft. There may be ground issues as well. For example, the taxiway run-up area can pose problems for aircraft behind a turbojet. The Tower provides information on the weather and aircraft activity environment when pilots are still far away from the Airport and can concentrate on those issues. Without the Tower, the firm estimated that up to 60 percent of the large tenants could leave. This would include companies like Flight Options and Eaton. Employment totals at the Airport would also suffer dramatically.

2.2 Flight Options Flight Options is a fractional jet company that has a command and control center located at CGF. The company employs 500 people, 75 of which work for the control center exclusively. The remainder work as flight crews, maintenance workers, and other support for the flying operations. Flight Options has six locations around the United States.

• Airport Operation: There are no problems perceived in the operation of the Airport by Flight Options. They would prefer the reactivation of the ARFF facility because safety is their number one concern.

• Airport Facilities: Flight Options would like a longer runway to permit longer stage lengths and to improve safety. The use of EMAS systems and declared distances does not increase the Airport's ability to accommodate aircraft needing longer runways. Need automated weather reporting and an Automated Terminal Information System (ATIS) to plan for approaches when outside the local airspace environment. ATIS broadcasts contain essential information, such as weather conditions, which runways are active, available approaches, and any other information required by the pilots. Pilots usually listen to an available ATIS broadcast before contacting the local control unit, in order to reduce the controllers' workload and relieve frequency congestion.

• Services Needed: ARFF and Automated Weather Reporting. • Satisfaction: Flight Options believes that the County is doing a great job keeping runway

clean during snow conditions. The FBO is doing a good job as well. The ramp has been recently rehabilitated and is in good shape. There is satisfaction with the County's Director of Public Works.

• Lease Agreements: The respondent was not aware of any issues with the current lease agreement.

• Airport Improvements Leading to Increased Activity: Flight Options desires a precision instrument approach at the Airport. This would provide greater safety margins in poor weather conditions and would allow for predictable stopping distances for aircraft landings.



2.3 Five Star Aviation Five Star Aviation is the privately owned aviation department of a family with domestic and international business interests. Five Star maintains and operates a Gulfstream 450 and a Falcon F7X from a corporate hangar on the airfield.

• Airport Operation: The principal complaint with the current operation of the Airport by Five Star Aviation centers on easy, consistent and clear communications between the Airport Management (County) and the tenants/users. Some of this is related to the recent departure of the previous Airport Manager which has led to the perception that there is not a consistent management presence on the field. It was stated that the interim manager is nice and does a good job. The tenant would simply prefer a readily accessible manager or even an assistant manager available on the field during normal business. This is especially true during periods of snow and inclement weather. The loss of Aircraft Rescue and Fire Fighting (ARFF) on the field is a safety and insurance concern. County/Airport maintenance crews were commended for their response to snow removal, however, it would be beneficial for incoming pilots to know which runway end is going to be cleared first, and when equipment will be clear of the runway. This is especially desirable well in advance of a final approach while it is possible to tuck into a "hole" in air traffic while inbound to linger an extra 10-15 minutes before committing to an approach. Proactive communications with tenants/users during periods of snow/inclement weather is of particular importance.

• Airport Facilities: Five Star would appreciate a runway extension to 5,500 feet, as forecast in the Master Plan. This would permit longer stage lengths, improve safety, and help minimize insurance rates and issues. There is a definite need for automated weather reporting and an Automated Terminal Information System (ATIS) to plan for approaches when outside the local airspace environment.

• Services Needed: Five Star is essentially self-sufficient for most needs, but states that ARFF, Automated Weather Reporting and Customs Service would further their mission capability significantly. Even an "on call" Customs Service would be a great benefit due to frequent flights to Europe that require a stop before arriving in Cleveland. This adds an additional cycle on the engines, and often involves significant fuel purchases at outlying airports instead of at CGF. Again, the need for more efficient communications between the County and tenants was stated. It was stated that the County does currently send faxes with announcement, notifications and updates. The problem is, no inbound pilot has access to those faxes. It was suggested that timely updates on the Airport website - especially during snow and inclement weather - that can be accessed by pilots operating into the Airport with times the runway is cleared and snow removal vehicles will be clear of the runway. Contact numbers for key Airport management on the website would assist pilots in calling in to notify the need to clear the Runway. Again, it is important that crews clear the same Runway end consistently. Greater predictability means greater reliability and a stronger sense of safety.

• Satisfaction: Five Star believes that the County is doing a good job clearing the runway during snow conditions - when the equipment is functioning properly.



• Lease Agreements: The respondent feels that fuel flowage fees are high due to being based solely upon on fuel volume minimums. The company believes that the square footage leased by a tenant should be included in the calculations as well.

• Airport Improvements Leading to Increased Activity: Greater runway length and Customs Service availability.

• Additional Leases: Not at this time. • Potential Tower Closure: Five Star stated that the closure of the Tower would result in

greatly reduced safety operating into and out of the Airport. Operating jet aircraft among propeller or rotor driven aircraft may lead to occasional brief delays with the Tower, but could lead to serious incidents without the Tower. The Tower is also currently the only source of weather information for inbound pilots. The Tower is deemed essential to Five Star.

2.4 Eaton As the single largest corporate operator on the Airport, (a tenant since 1973) Eaton is a Fortune 200 globally diversified power management company with 2012 sales of over $16 billion. Eaton has over 100,000 employees and sells products to customers in more than 150 countries. Eaton maintains and operates a fleet of seven jet aircraft including two Challenger 300s, four Learjet 45s, and a Falcon 50. Five are currently based in their corporate hangar on the airfield, with one based in Pittsburgh and one in Battle Creek, Michigan. Eaton will be adding two Challenger 300s and selling the Falcon 50, to bring their fleet total to eight aircraft.

• Airport Operation: Eaton's principal concern with operations involves the hours of operation by the Control Tower and the impact of high minimums currently caused by obstructions (primarily trees) on approach to the runways. Currently, the Tower is staffed from 7 am to 11 pm. Most of Eaton's business operations fall just outside of that window, with many flights originating between 6 am and 7 am, and returning between 11 pm and midnight. Extending Tower hours by one hour on each end of the current rotation would be considered a significant benefit to Eaton's operations. Consistent and clear communications between the Airport Management (County) and the tenants/users was also discussed, along with the desire to have access to management on the field during business hours.

• Airport Facilities: Eaton has a strong desire to see the runway extended to 5,500 feet, ILS installed on Runway 6, and approach minimums lowered to standard by cutting/trimming trees in the approach areas of both runway ends. (This is strongly urged, even if it requires implementing "eminent domain" in order to attain the rights to trim trees that have grown too tall.) The ILS on runway 24 is beneficial, but limited due to higher minimums. The GPS approaches are helpful as well, but there is also a need for an ILS on the runway 6 end. An ATIS would also be beneficial. These improvements will resolve many issues that have led Eaton to consider the possibility of basing their operations elsewhere. In the interim, the condition of the current runway has become an issue. Airport management has done a good job patching cracks and holes, but it is time for a runway overlay. In fact, from Eaton's perspective, if the choice is between a runway extension and resurfacing the 5,100 foot runway, they would prefer a new surface. There have been occasions due to weather and the higher minimums at CGF that Eaton has



been diverted to Cleveland-Hopkins. Lowering the minimums would eliminate this significant inconvenience.

• Services Needed: Eaton is self-sufficient in many areas of operation, but states that ARFF, AWOS, and U.S. Customs Service would further their mission capability significantly. Even an "on call" Customs Service would be a great benefit due to frequent flights to Europe, Canada, and South America that require a stop in Bangor, Maine or other outlying airports with Customs availability, before arriving in Cleveland. This adds an additional cycle on the engines, and often involves significant fuel purchases at outlying airports instead of at CGF. If flight operations occur after Tower hours, there is currently no weather reporting from the Airport. Again, the need for more efficient communications between the County and tenants was stated - especially during snow and inclement weather. Eaton stated that Airport security is adequate, but pointed out that they employ their own security team. Suggested that an increased presence of Airport personnel especially outside of normal business hours might be helpful.

• Satisfaction: Eaton said the County generally does a great job keeping the runway open during snowy weather.

• Lease Agreement and Additional Leases: The company has been a tenant since 1973. They built their own hangar, which reverted to the County in 2003. They are now essentially a renter, although they invest in capital improvements and maintenance to the structure. They would like to expand but think the only direction available is toward the ramp side. Need a larger footprint. The company has looked into building a new hangar at another airport, due to need for more hangar space.

• Airport Improvements Leading to Increased Activity: Nothing in particular would increase activity. The company has need to operate regardless, however, greater runway length, Customs Service availability, a less pitted runway surface, lower minimums, improved precision approaches, ARFF, AWOS, ATIS, and extending Tower hours of operation would all contribute to supporting and maintaining activity.

• Potential Tower Closure: Eaton currently stages approximately 18% of annual operations into uncontrolled (non-towered) airports. If the Tower at CGF is closed, that would push the total of operations into uncontrolled airports above 50 percent annually. This is simply untenable for many reasons, not the least of which centers upon reduced safety and increased insurance premiums. The company representative clearly states that the closure of the Tower would result in reducing their operations immediately, with the ultimate result of leading them to relocate operations to another towered airport. Continued operation of the Tower is absolutely essential to the retention of Eaton.

• Other Comments: The County needs to implement a significant public relations/marketing campaign to better communicate the value of the Airport to local non-flying citizens, and better explain the need for removing obstacles (trees) as well as explaining the facts about Airport noise.

2.5 Progressive Progressive is one of the largest auto insurers in the United States, with over 10 million policies in force. Progressive offers its services through the Internet, by phone and through more than 30,000 independent insurance agents. Progressive had sales of over $15 billion in 2010 and



was ranked 164th in the Fortune 500 in 2011. Progressive has corporate aircraft and operates from a conventional hangar on the field.

• Airport Operation: Progressive's principal concern with Airport operations involves the hours of operation by the Control Tower and the corresponding noise curfew times between 11:00 pm and 7:00 am. This noise limitation is particularly an issue when corporate executives need to get to New York City by 8:00 am. Ideally, they should depart between 6:00 am and 6:30 am. As it is, they must wait for the Tower staff to get in at 7:00 am. Another issue involves snow and ice removal. Oftentimes if the pilot doesn't call well in advance, the runway is not cleared by 7:00 am which causes unnecessary delays. The elimination of the ARFF truck was not well received by the company CEO. The additional response time by firefighting crews is highly objectionable.

• Airport Facilities: Progressive as others, has a strong desire to see the runway extended to 5,500 feet, an ILS installed on Runway 6, and approach minimums lowered to standard by cutting/trimming trees in the approach areas of both runway ends. The GPS approaches are helpful, but obstructions cause the minimums to be well above standard. The higher minimums combined with weather issues caused Progressive flights into CGF to abort more approaches in the past year than in any year prior. AWOS would be much appreciated, especially after hours when the Tower crew is not available.

• Services Needed: Progressive is self-sufficient in most areas of operation including security, but states that ARFF, AWOS, and the Tower are essential.

• Satisfaction: Progressive is pleased that the County is doing this operational review, opening channels of communications with tenants and seeking ways to improve the Airport. The expressed interest in the Airport by the Department of Public Works is appreciated.

• Lease Agreement and Additional Leases: Based on Progressive’s current utilization of the facility they do not anticipate requiring additional space. However they do currently sub-lease a portion of the facility to another entity that may not have the need for the facility for the duration of time that Progressive requires. In this circumstance Progressive may entertain a smaller facility to accommodate their hangar requirement. Nothing is imminent - just an indication of the current arrangement that they have for their leased facility. ‒ All maintenance/repair is Progressive’s responsibility. They have put a significant

amount of money into building infrastructure improvements that provides long-term benefits to the facility. Some level of cost sharing between the County/Progressive for these types of improvements would be more equitable. This was identified during the most recent renewal but the County was not interested in entertaining these discussions.

‒ Lease language indicates that the ground rental payments during renewal options are at market rates. Preference would be to negotiate fixed rates now to avoid any future dispute on what 'market' rates truly are.

‒ The County has the right to adjust the rental rate/fee structure if Progressive assigns the lease. In the event Progressive no longer needed this facility this provision is not favorable and could be large impediment (timing & cost) in finding a replacement Tenant. Language modification to remove the ability of the County to adjust the rental rate/fee structure would be desired.



• Airport Improvements Leading to Increased Activity: There are no improvements that would increase activity.

• Potential Tower Closure: If the Tower were to close, Progressive would continue to fly from CGF over the short term. Without the Tower and AWOS the Airport would be less safe, and would require greater time allowances for takeoff and landing. In terms of risk management and general hassles, the company would not be inclined to continue long term operations from an uncontrolled airport. If alternative funding could not be sourced to keep the Tower operational, it is highly likely that Progressive would seek to base operations at a towered airport.

3. INPUT FROM THE AIR TRAFFIC MANAGER

S A PART OF THE OPERATIONAL REVIEW, discussions were held with Donald "Scott" Huth the Air Traffic Manager for the Control Tower at CGF. Mr. Huth is employed by Midwest Air Traffic Control Service, Inc. the private contractor responsible for staffing,

operating, and managing the Control Tower on the Airport. He has been a fixture in the tower at CGF for 31 years. He was interviewed by telephone to provide a better understanding about the service they provide and its significance to operations at CGF. 3.1 Interview Questions The interview incorporated four simple questions to better understand the obstacles and necessary improvements that can be addressed to minimize potential vulnerabilities. The questions included:

1. What do you see as the role of Air Traffic Control at CGF? 2. How would operations be impacted if the Tower were not on the Airport? 3. What is your staffing and what are your hours of service? 4. If finances were not an obstacle, what services or facilities could the County provide to

improve the Airport? The interview took place Friday, May 24th. 3.2 Responses What is the Role of Air Traffic Control at CGF? Midwest Air Traffic Control is a private contract service funded by the FAA for CGF. A number of studies have shown that in most circumstances, private "contract towers" are managed more efficiently financially than FAA-operated towers. Air Traffic Controllers (ATC) serve as "traffic cops" of the sky. The primary role is to safely direct the flow of traffic in the air around the Airport, and on the ground at the Airport. ATC keeps traffic running smoothly and provides information and other support for pilots. ATC enforces traffic separation rules to ensure that each aircraft maintains a minimum safe space around it at all times. This is especially important at CGF where there is a wide mix of aircraft

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types. Single engine propeller aircraft and helicopters are much slower than corporate jets. ATC’s duty is to make sure that safe distances are maintained between these aircraft types. ATC also provides information to pilots on weather conditions, birds and wildlife activity, and other important matters on the Airport. In the event of an accident, emergency, or a security breach, ATC’s job is to provide guidance and control to all operation on the airfield - including the coordination of activities among emergency responders. How Would Operations be Impacted if the Tower Were not on the Airport? If the ATC Tower were to cease operations at CGF, it would change the personality and tenant base of the Airport. It may not happen overnight, but in relatively short time, most of the large corporate operators would seek to relocate to another "towered" airport. This is due to the responsibility of each flight staff to provide as much safety for corporate VIPs as possible. In addition, it is very likely that their insurance providers would require such a move. Considering the liabilities of a multi-billion corporation, operating an aircraft valued at over $50 million, and occupied by the key executives of that corporation, safety is not an option. And that includes a staffed control tower. The FBO on the field survives almost entirely due to the services they provide the larger corporate aircraft that utilize CGF. If the tower goes, and the corporate aircraft go, it is very likely the FBO leaves also. Staffing and Hours of Service Prior to 1981 the FAA operated the CGF Tower with 12 employees. Today Midwest operates the tower with five contract employees from 7 am - 11 pm daily, with a substantial reduction in expenses. Typically, two controllers staff the tower during peak operations times in the mornings and evenings. What Services or Facilities Could be Made to Improve the Airport? In the opinion of the Tower Manager, there was a list of six items that would most benefit CGF. These recommendations have been moved to Section 5 to be grouped with other recommendations coming from the interviews.

4. FIRE STATION MANAGERS’ INPUT

S A PART OF THE OPERATIONAL REVIEW, a survey was performed of Fire Chiefs from the three neighboring communities primarily responsible for responding to fires and medical emergencies on the Airport - Richmond Heights, Willoughby Hills, and Highland

Heights. They were interviewed by telephone to gain an understanding about how they respond to emergencies and aircraft incidents at the Airport. All were extremely cooperative and provided much needed insight into the needs and potential trouble areas that must be addressed as time and resources permit.

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4.1 Interview Questions The survey incorporated four simple questions designed to provide a better understanding of the obstacles and necessary improvements:

1. Where is your station located? 2. What is your typical response time to an incident on the Airport? 3. What logistical challenges, services or facilities do you recognize that the County/Airport

Management could address that would improve your effectiveness? The interviews were conducted over a one week period from May 20th to May 24th. 4.2 Interview Responses Responses to the survey questions were recorded for each interview conducted. At the conclusion of the section, a summary of the responses with recommendations for action are presented. Station Locations The three Fire Chiefs and department locations are as follows:

• Marc Neumann - Richmond Heights ‒ Richmond Heights Fire Department is a full service professional organization

made up of firefighters and EMS personnel. ‒ The Fire Station is located approximately 0.5 miles south of the nearest Airport

gate off the Runway 6 end of the field.

• William Turner - Highland Heights ‒ Highland Heights Fire Department is a full service professional organization

made up of firefighters and EMS personnel. ‒ The Fire Station is located approximately 1.25 miles south of the Control Tower

gate south of the Runway 24 end of the field.

• Rich Harmon - Willoughby Hills ‒ Willoughby Hills Fire Department has evolved from a volunteer organization

providing basic fire protection into a “combination” (career & part-time) fire department staffed by firefighters and EMS personnel.

‒ The Fire Station is located approximately three miles northeast of the nearest Airport gate.

Response Times Reflex time is the total response time from initial call to 911 to trucks and personnel actually arriving on the airfield. It is broken into three primary segments:



• Process Time: The time from an initial call to 911, collecting essential information (location and type of emergency) and dispatching notification to appropriate emergency responders. All three Fire Departments reported process times of less than 1 minute.

• Turnout Time: The time required for firefighters and EMS to suit up and get rolling out of the station. All three Fire Departments reported turnout times of less than 1 minute.

• Travel Time: The time required to drive from the station to the actual scene. (This time also includes time required to access the airfield via various gates around the field.)

‒ Richmond Heights - 1 to 1.5 minutes. ‒ Highland Heights - 1.5 to 2 minutes. ‒ Willoughby Hills - 3.5 to 5 minutes. ‒ All three departments reported manual access issues with gates that add 30

seconds or more to their travel times.

Logistical Challenges and Maximizing Effectiveness In response to what logistical challenges, services or facilities could be addressed to improve effectiveness, the following responses were given:

• Training: All community firefighters are currently trained in combating structural (houses and buildings) firefighting, but up to half of their crews have not been trained in Aircraft Rescue and Fire Fighting (ARFF). Among those who have ARFF training, none have received it at the local level in over seven years. They strongly advocate for some type of ARFF training program be made available to their crews - ideally on a local basis. Apart from that, they also strongly supported any training and familiarization in affiliation with the aviation companies on the Airport - especially those capable of instructing firefighters in the safest ways to cut into a damaged aircraft while attempting to rescue survivors. It is understood that on jet aircraft, there are certain high pressure hydraulic lines and other hidden structural components that if severed could inflict significant harm to rescuers. Therefore, the same equipment used for extracting injured victims from a wrecked automobile may also work on a jet aircraft, but the methods and techniques may differ greatly. Some training in this regard is essential.

It was unanimously recommended that Airport staff responsible for responding to fires take part in cross training for structural firefighting with the local departments. This is to enhance their safety should there be a fire in one of the many buildings on Airport property, and to better allow them to interface with the outside fire crews.

• Foam and Water: All departments carry varying quantities of foam suppressant on their

trucks (from 15 to 100 gallons) which is mixed with water in about a 50 part water to 1 part foam ratio for combating fuel related fires. The nature of combustibles on aircraft very often requires large quantities of foam. All departments expressed the need for ready access to additional foam and water sources that could prove invaluable in effectively combating aircraft related fires and possibly saving lives on the Airport. All pointed out that there are no water sources available on the airfield. The nearest hydrants are outside the fence, near the buildings. All requested some way of making these vital water sources more accessible.



• Size and Capacity of Equipment: The Airport staff is limited in terms of equipment and

resources. It is reported that the primary fire fighting vehicle currently is a pickup truck with a 500 pound cylinder of Purple-K, also known as PKP. This is a dry-chemical fire suppression agent, effective in fighting class B (flammable liquid) fires, and can be used against some energized electrical equipment fires (class C fires). While this may help buy some time for the outside fire departments to arrive on scene, it is well below the capabilities of the specialized ARFF truck previously available on the airfield. All stated that it is highly unlikely that the current Airport firefighting crew or equipment would ever be called upon to assist in combating blazes off Airport property.

• Response Times: Emergency response and access times are a vital issue. All departments had the same concerns. Process times and turn out times are virtually identical between all departments. Travel times are dictated by distance and traffic. The only area all three Fire Chiefs agreed could be positively reduced is the actual time it takes to get through the fence and onto the airfield. All departments respond to different gates around the airfield - generally those closest to their respective stations. All reported typical access times of approximately 30 seconds for a crew member to climb off the truck, manually unlock the lockbox, and trigger the opening mechanism (or to unlock a padlock, remove a chain, and open the gate manually). In rescuing people and fighting fires, 30 seconds can make a significant difference in the outcome. Several options were discussed for installing automatic receivers to electronic gates that would reduce emergency access times. These included installation of siren activated triggers, radio activated triggers, and Opticom triggered receivers to electronic gates. While siren patterns and tones vary widely, and radio equipment and frequencies may be different, all Ohio public safety/emergency response vehicles are equipped with Opticom transmitters. Opticom transmits an infrared light beam to a receiver which causes traffic lights to cycle to permit emergency vehicles to more safely transit busy intersections. It can also be configured to open an electronic gate. A basic Opticom receiver capable of triggering a gate costs about $500 - not including the cost of installation.

• Communications: Under virtually all scenarios, the Control Tower is responsible to all air and ground traffic on the airfield. Until recently, many of the emergency response vehicles were equipped with radios capable of direct communications with the Tower. Now all local and state Emergency response vehicles (LifeFlight, Police, Fire, EMS, MedEvac, and Hospitals) are equipped with MARCS (Multi-Agency Radio Communication System). This is an 800 MHz radio and data network that utilizes state-of-the-art technology to provide statewide interoperability throughout Ohio. The MARCS system provides statewide, secure, reliable public service wireless communication for public safety and first responders. This system permits all emergency vehicles responding to be in direct communications while en route and on the scene. A MARCS unit was discussed for the Control Tower, but to date, has not been provided. It is essential that all emergency responders have direct communications access with the Tower.



• Airport Emergency Operations Plan: It should be noted that our interviews occurred prior to the distribution of the new Airport Emergency Operations Plan on April 1, 2013. As such, the concerns expressed by respondents that the plan was out of date have been resolved.

5. LOST NATION AIRPORT MANAGEMENT

OHN LOFTUS OF THE LAKE COUNTY PORT Authority provided an understanding of the proposed management of Lost Nation Airport (LNN) by Cuyahoga County. Prior to the departure of the Cuyahoga County Airport manager, discussions were held between the

Lake County Port Authority and Cuyahoga County for the possible joint operation of LNN in Willoughby. LNN is only nine miles from CGF and there is a concept that economies of scale may be reached through a joint management agreement. By way of explanation, LNN is owned and operated by the City of Willoughby. The City is working with Lake County to take responsibility for the operation and maintenance of the airport through the County’s Port Authority. Although the Port Authority is ill-equipped to manage and operate the airport, they have agreed with the understanding that some of the operational and maintenance functions can be “subcontracted” to a third party. The upshot of this has been the contact of Cuyahoga County by the Lake County Port Authority with the express purpose of having Cuyahoga County operate and maintain LNN. The Port Authority would then be free to market the facility and promote economic development, collect rents, and pay the airport’s bills. Under the agreement, the Lake County Port Authority would expect Cuyahoga County to do the following:

• Grant Management • Daily Inspection • Lights Working • Mowing • Snow Removal Services or Management of Third Party Snow Removal Contractor

The general idea is that it may be economically feasible for both parties to operate in this manner. While specifics of the agreement will need to be analyzed to determine if such services can be offered to the benefit of both parties, the main assumptions appear sound.

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6. FINDINGS AND RECOMMENDATIONS

HERE WERE COMMON THEMES AMONG THE RESPONSES given by tenants regarding Airport operational improvements. These came mostly in the form of requests for additional facilities and services. It should be noted that many indicated high marks for the County

in their provision of snow removal services. Respondents also appreciated the fact that the County was undertaking this survey as an expression of interest of their concerns. 6.1 Airport Tenants A summary of recommendations from Airport tenants included:

1. Airport Manager: A number of corporate tenants desire the presence of an on-site airport manager. They like the Department of Public Works manager, but believe that specialized knowledge of airport compliance, NOTAM filing, and other aviation industry practices is needed. Better lines of communication between the County and tenants were also requested. This would require providing tenants clearly defined names, telephone numbers and email addresses in a proactive "business friendly" manner. They need to know who to contact during and after hours, during inclement weather, etc.

2. Airport Facilities: All of the jet operators desire a longer runway. Some operators requested a resurfacing of the existing runway in the interim. A majority of operators requested Instrument Landing System on both runway ends. A precision approach with lower minimums would mean trimming obstructions (mostly trees). Also, an AWOS was requested by most operators.

3. Airport Services: The most important service to the jet operators is the Air Traffic Control Tower. Loss of the Tower would create an exodus from the Airport. In addition, ARFF, ATIS, and U.S. Customs Service were often-requested services. Better communication between the County and aircraft operators is needed to learn of snow removal plans or other issues occurring on the field in real time via the Airport website, social media, and texting if possible. Email and faxes do not reach pilots in the air. ATIS would help to relieve this problem. An improved (and frequently updated) Airport website was also suggested.

4. Lease Agreements: Most of the requests for changes in lease agreements were not favorable to the County. However, some commented on the need for uniformity, consistency, and standardization.

5. Potential Tower Closure: A potential closure of the Control Tower would dramatically reduce the number of corporate based aircraft and jet operations at the Airport. This could reduce income for the Airport by a significant amount.

6. Tower Hours of Operation and Noise Curfew: A number of operators expressed difficulties presented by the current Tower operations hours of 7:00 am to 11:00 pm. A significant number of their flights require departures between 6:00 am and 7:00 am, and arrivals between 11:00 pm and midnight.

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7. Improved Community Relations: Several operators suggested that a more aggressive public information/marketing effort would be beneficial, especially with residents in close proximity to the Airport. They believe that if neighbors actually had a better understanding of what goes on at the Airport, the jobs produced, the revenues generated, the sincere efforts to mediate noise, the need to trim trees for the safety of everyone, that perhaps there would be less resistance to the changes that are necessary.

8. Appreciation: Several operators specifically mentioned their appreciation of the County in performing this review and seeking their opinions.

6.2 Tower Manager Recommendations In the opinion of the Tower Manager, a list of items that would most benefit CGF would include:

1. AWOS (Automated Weather Observing System): Currently, all pilots must check with the Tower for weather information on and around the Airport. However, the Tower is not open 24/7 and any pilots planning arrivals during periods the tower is unstaffed do not have access to current, accurate weather information. CGF may be one of only two "towered" airports in the nation without AWOS.

2. Improvements to the ILS (Instrument Landing System): Currently, CGF only has one "front course" ILS approach on the Runway 24 end. Runway 6 is merely a reflection of the signal from the 24 end. This is known as a "back course" ILS, and is an antiquated "work around" in situations where unique signals from each runway end are not available. The FAA recently altered the obstruction free area around the Airport, but did not remove the obstructions in those areas. This meant the approach on Runway 6 no longer met standards. The FAA chose to NOTAM the back course ILS signal on Runway 6 out of service. A front course ILS on Runway 6 would make great sense and would add convenience and safety, especially for corporate aviators.

3. Reducing Approach Minimums: It is essential that the Airport do everything possible to reduce the approach minimums (minimum descent altitude or MDA) currently in place. This the lowest altitude to which descent is authorized on final approach. An aircraft must not descend below the MDA until visual reference is obtained to then follow through with landing procedures. In times of inclement weather, especially snow and fog, the lower the minimums, the safer and more convenient for pilots. In times of clear weather, or on airports with long runways, a higher minimum is not as much a concern. For a heavily laden jet landing at an airport with a 5,100 foot runway, this can present a challenge, even in good weather conditions. The front course precision minimum on Runway 24 is currently 400 feet. This is double the standard minimum of 200 feet. The back course minimum on Runway 6 is 600 feet, triple the standard of 200 feet. Lake effect weather makes navigating even more difficult for pilots. It may require exercising eminent domain or other legal leverage, but trees need to be trimmed to reduce the minimums for pilot safety.



4. ARFF (Airport Rescue and Fire Fighting): ARFF is essential to corporate aviators, fractional jet operators, and FAR Part 139 operations. While Part 139 applies primarily to air carrier passenger operations, the safety standards provide enhanced benefits for corporate and charter operations. Insurance companies covering any of the larger corporate operators on the airfield certainly desire ARFF services for their clients.

5. MARCS (Multi-Agency Radio Communications System): MARCS is the system used in emergency vehicles, life flight helicopters, and hospitals, statewide. Until recently, the ATC on the Airport operated at a radio frequency accessible to emergency responders locally. This has changed and it is essential that the tower have a MARCS unit available for use in times of emergency.

6. ATIS (Automatic Terminal Information Service): ATIS is a continuous broadcast of recorded non-control aeronautical information. ATIS broadcasts a recording that contains essential information, such as weather information, runway information, available approaches, important NOTAMs, and any other information required by the pilots. Pilots have access to ATIS broadcasts at all hours.

6.3 Fire Station Summary and Recommendations A summary of the three fire station combined recommendations includes the following:

1. Airport Access: The primary way to improve response times is to improve actual access "through-the-fence" onto the airfield. Therefore, it is recommended that the County examine the possibility of adding Opticom triggered electronic gates at the three primary access points for the three fire departments. If it is not feasible financially to improve all three gates at one time, it is recommended that at the very least the gate accessible to the nearest fire station be augmented with an Opticom system so that they may reach an emergency scene on the airfield in the shortest time possible, permitting the other two stations to respond as they are able to enter the airfield. Ultimately, the County should plan to install three automated Opticom triggered gates.

2. ARFF Training: There is strong need for local crews trained in "structural" firefighting to also have ARFF training. Therefore, the County/Airport Management should investigate options for providing an ARFF training program for local firefighting crews - ideally on a local basis. In addition to this, the County/Airport Management should also seek to integrate local firefighting crews in more specialized jet aircraft rescue procedures with one or more of the jet aircraft businesses on the field.

3. Foam and Water: Should an aircraft incident occur, ready access to additional foam and water sources will be vital. It is therefore recommended that the County/Airport Management look into providing a clearly identified foam storage unit on the Airport. There are no water sources available on the airfield. In an emergency, seconds count. It is therefore recommended that special markings and/or markers be installed along the length of the taxiway and in corresponding locations along the fence line to indicate the hydrants most readily accessible to the airfield and runway.



It is further recommended that small manually accessible gates be installed along the fence line which will permit firefighters a direct line of access to hydrants outside the fence. These gates need not be large - just big enough for individual firefighters to run hose lines to the nearest hydrants.

4. Larger Equipment: The Airport staff is limited in terms of equipment and resources. While a light truck with 500 pounds of Purple-K is better than nothing, the Airport has lost its Part 139 rating which has benefits for many corporate flight departments, and is vital to fractional operators like Flight Options. It is recommended that the County/Airport Management reconsider providing upgraded ARFF equipment and personnel on the field.

5. Cross Training: All fire departments recommended that Airport staff responsible for responding to fires take part in cross training for structural firefighting with the local departments.

6. Tower Communications: The Control Tower is responsible to all ground traffic on the airfield. The Tower is not currently equipped with a MARCS radio capable of direct communications with emergency responders and area hospitals. It is strongly recommended that a MARCS unit be provided to the Tower as soon as possible.

Documents

Cuyahoga County Airportpublicworks.cuyahogacounty.us/pdf_publicworks/en-US/CC-AirportO... · Cuyahoga County Airport ... All of the jet operators desire a longer runway. Some operators