By: Robin K. Hunt, SFO ADO Manager Patrick Lammerding, LAX ADO Assistant Manager

Date: September 12, 2014

Federal AviationAdministrationFAA Update

Airports Program

Association of California Airports Conference

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FAA Update

AIP Program Review What’s New in AWP Hot Topics Airport Safety

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Note: Data as of September 5, 2014.

State Entitlement Discretionary Total

Arizona $21M.. $6M… $27M…

California $76M.. $116M… $192M…

Nevada $19M.. $0M… $19M…

Hawaii $28M.. $3M… $31M…

Pacific Islands $13M.. $5M… $18M…

Total: $157M.. $130M… $287M…

FY14 AIP Funds Issued To Date

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Target Balance Vs. Actual Regional Balance

Grant Year FY13 FY12 FY11 FY10

Target: August 19 (45%) (21%) (9%) (5%)

Arizona 50% 23% 3% 1%

California 60% 23% 15% 1%

Nevada 47% 14% 14% < 1%

Hawaii 68% 6% 9% 0%

Pacific Islands 65% 21% 9% 5%

AWP 57%(Behind by $50M)

20% 9% 2%(Ahead by $12M)

Within 5% of goal Beyond 5% of GoalNote: Data as of September 5, 2014.

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Note: Data as of September 5, 2014.

State > 6 Months > 9 Months > 12 Months

Arizona 6 19 21

California 13 30 18

Nevada 5 4 7

Hawaii 0 1 0

Pacific Islands 1 1 0

Total: 25 55 46

Grants with No Payments

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Inactive Grants

Grant condition requires sponsors to complete projects without undue delay.

Sponsors with inactive grants will be considered as elevated risk. (requires additional payment documentation).

Grant inactivity is a factor in considering future AIP grants with state apportionment and discretionary funding.

FAA may pursue unilateral closeouts for inactive grants.

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Expired AIP Funds

State FY11 FY12 FY13 FY14

Arizona $1.1M $0.1M $3.0M $3.7M

California $4.8M $1.3M $5.5M $6.1M

Hawaii $0 $0.1M $0.3M $0.2M

Pacific Islands $0 $0 $0 $0

Nevada $0.1M $0.1M $0.1M $0.5M

TOTAL $6.0M $1.6M $8.9M $10.5M

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FY15 - It Is Not Business As Usual

Unlike Previous Years:

Open bids by May 1 to June 30 (better chance of getting $)

Carryover on May 1

Unilateral Closeouts on Inactive Grants

Project Notice-To-Proceed with 6 months of Grant Issuance

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Important Dates for FY15 Program

Events Due Dates

Environmental (FONSI, ROD, or CAT EX) December 31

Applications December 31

Declare Carryover May 1

Open Bids May 1 - June 1

Grant Offers (approximate) June 15

Grant Execution (approximate) July 15

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Hot TopicsVehicle Pedestrian Deviations Potentially the highest year for total V/PDs 3 VPDs during FY trigger special emphasis meeting V/PDs and RIs at 139 airports dramatically exceed GA in FY14

FY Total V/PDs Total RIs V/PD 139 V/PD GA RI 139 RI GA

2010 69 42 35 34 19 23

2011 63 43 29 34 23 20

2012 68 27 23 45 10 17

2013 90 43 39 51 22 21

2014 75 43 46 29 25 18

Note: Data as of September 5, 2014.

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Part 139 CertificationNew and ImprovedNew Process Improvements

New FAA Airport Inspectors Fully staffed, improved customer service and oversight

Inspections at Large Hub Airports Two FAA Airport Inspectors

100% Training Records Review Findings: Insufficient training; Recurrent timelines not meeting the order

Risk Based Metrics High risk short correction timeframe; Low risk longer correction timeframe

Extensions Approved by Branch Manager

Regional SOPs Standardize procedures for efficiency

Regional Tracking System Improved discrepancy tracking and reporting

COMPLIANCE WITH THE REGULATION IS NOT CONTINGENT UPON AIP FUNDING

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Questions?