B) Highlights and Updates of Alternatives B and C Damon Smith and Mitch Hooper

PAC Special Topics Meeting – Dec. 10, 2015

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Application of Design Standards •Runway, Taxiways, Safety Setbacks •Design Aircraft – Cessna Citation CJ3 (Design Group B-II)

– Size and setbacks of airfield facilities • FAA Advisory Circular 150/5300-13A

– Widths, setbacks, and safety areas

Cessna Citation CJ3

PAC 7? Why can’t runway be left as it is? • FAA funding dictates dimensions • Funding is based on proposed design meeting FAA criteria

– FAA will not build beyond what is “reasonable and justified” •Runway and taxiway facilities at TTD are larger than FAA sees as needed to

serve users at TTD • FAA is requiring airports across country to meet runway protection zone

design standards – Deviation requires demonstration that there is no feasible way to meet

design standards

Application of Design Standards

•Runway exceeds FAA standards: 150’ existing, 75’ justified • Some Taxiways exceed FAA standards •Runway protection zones leave airport property, non-compliant uses

Application of Design Standards

• Some taxiways exceed FAA standards: up to 115’ existing, 35’ justified • Some taxiways are not ideally located

– FAA: Avoid middle 1/3 of runway, apron to runway access

Alternative B

• 3,600’x75’ Runway, shifted as far east as possible • 90 acres industrial, 152 acres aviation (airfield and buildings) •Role: Training, piston + turbo prop recreational/business, light jets

Airfield access remains a possibility.

Alternative C

• 4,500’x75’ Runway, shifted as far east as possible • 73 acres industrial, 168 acres aviation (airfield and buildings) •Role: Training, piston + turbo prop rec./business, light/medium jets

Airfield access remains a possibility.

Market Potential TTD Markets1

•Recreational – 40% of activity in U.S. – 32% of activity at TTD

•Business – 45% of activity in U.S. – 20% of activity at TTD

• Flight Training – 15% of activity in U.S. – 48% of activity at TTD

(1) Estimates, based on available data

Market Potential Emerging and Growing Markets • Light Sport Aircraft

– Recreational use – 5,105 aircraft (2% of total) by 2033 nationally – 15,200 pilots (2% of total) by 2033 nationally

•Unmanned Aircraft Systems – Don’t necessarily need an airport to operate – Regulation pending, growth once approved – 7,500 commercial UAS within 5 years1

• Turboprops, Helicopters – Turboprops: 1.5% growth/year, 6% of fleet

•Runway length requirements <3,600’ – Helicopters: 2.5%/growth year, 8% of fleet (1) FAA NPIAS, based on eventual authorization

Existing Alternative B Alternative C5,399'x150' 3,600'x75' 4,500'x75'

Piston and Turboprop Exists Yes YesJet Does not exist No Yes

Piston and Turboprop Exists Yes YesJet Exists No Yes

Piston and Turboprop Exists Yes YesJet Does not exist No No

Flight Training Piston and Turboprop Exists Yes YesSmall Piston and Turboprop Exists Yes YesLarge Piston and Turboprop Does not exist No No

Jet Does not exist No NoAircraft Sales Piston, Turboprop, Jet Does not exist No No

Piston and Turboprop Exists Yes YesJet Does not exist No No

Limited Support Piston and Turboprop Does not exist Yes Yes(Cosmetic maintenance) Jet Does not exist No NoExperimental Aircraft Piston and Turboprop Does not exist Yes YesServices and Support Jet Does not exist No No

Small Piston and Turboprop Does not exist Yes YesLarge Piston and Turboprop Does not exist No No

Jet Does not exist No No

Potential For Business at TTDBusiness MarketBusiness Type

Other "For Hire" Services

Aircraft Charter

Aircraft Rental

Avionics Maintenance

Aircraft Maintenance

Aircraft Storage

Market Potential

•Alt. B supports business that cater to piston and turboprop aircraft •Alt. C provides a wider range – including some jet services

PAC 7? Will FBO be feasible?

•Airports in area with runways less than 5,000’ support FBOs – Vancouver Pearson (3,275’) , Mulino (3,425’), Twin Oaks (2,465’),

Kelso (4,319’), Newberg (2,755’) •Market assessment: FBO will be feasible given level of traffic at TTD

– Services offered may be different – Target markets: pistons and turbo props, not business jets – May no longer sell Jet A fuel (depends on level of turbo props and

turbine helicopters)

NextGen Impact Existing Technologies for GA Market •Wide Area Augmentation System (WAAS) (38% of US fleet equipped)1

– Enables GA to use global position system (GPS) approaches

– WAAS on 70% of GA instrument flights into HIO and UAO2

• 2% of TTD operations were instrument3

•Automatic Dependent Surveillance – Broadcast (ADS-B) (4% equipped) 1

– National universal equipage goal is 2020 •NextGen Benefits

– Traffic separation (ADS-B) & required navigation performance (RNP) – Lower minimums – More efficient (time and fuel) operations

Sources: (1) 2015 Puget Sound Regional Council “NextGen Airspace Optimization Study” (2) 2015 FAA NextGen Performance Based Navigation Dashboard (3) TTD Master Plan Aviation Activity Forecasts

NextGen Impact

•RNP has levels of precision – some require special authorization • Few aircraft can take full advantage of higher precision RNP to-date • Even with avionics upgrades, higher precision RNP requires crew training

Sources: (1) Honeywell Corporation, 2013

PAC 7? – What about LAX and HHR

•Runway Orientation: Parallel to each other • Traffic origin: LAX flows coming primarily from north and east • LAX primarily flows arrivals from east (except early morning trans-Pacific) • FAA NextGen Metroplex

LAX

HHR

PAC 7? – What about LAX and HHR

•Runway Orientation: Runways are not parallel • Terrain: Mountains to east limit approach corridors • Traffic origin: PDX inbound from north, east, and south primarily •PDX flows east and west (wind and noise mitigation)

PDX

TTD

Industrial Development

•Vital to generating revenue that supports ongoing aviation activity. •Can occur without displacing eastern GA facilities over next 10 years. •Plans do not interfere with ATCT-north pattern line of sight. •Develop northside first – other areas held as “reserve”

2016-2020

2027-2033

PAC 7? – Can UAO be used as a model? • Industrial development does not preclude aviation-related

manufacturer from leasing site. •Port is interested in producing revenue from land that is vacant or in

excess of demand – Aviation-related developer could lease property for R&D or

manufacturing – Airfield access could be maintained (or added by developer)

•Aviation manufacturing and R&D ARE “industrial uses” – Garmin at SLE, Columbia Helicopters and Vans Aircraft at UAO

•Others may not require airfield access but can be located on-site – Boeing on Sandy Blvd.

• These types of users have not expressed interest in TTD at its existing configuration

Airport Role in System •All have FBO and fuel • 63% have jet fuel

– PDX, HIO, UAO, TTD, SPB • 50% have control tower

– PDX, HIO, UAO, TTD • 50% have vertically guided approach

– PDX1, HIO1, UAO2, SPB2 • 2014 Regional Business Jet Operations3

– PDX (52%), HIO (29%), UAO (17%), TTD (2%), others (<1%)

(1) Conventional and NextGen vertically guided approaches (2) NextGen vertically guided approach only (3) 2014 FAA Traffic Flow Management System Counts

Port Airport System Approach • Airport Futures/PDX Master Plan 2010 • Requirements for additional GA facilities at PDX driven by:

– FAA policy – Demand – Port’s philosophy toward managing a system of airports

serving the needs of a growing region • The Port is committed to meeting GA needs by providing facilities and services that are reasonable and appropriate to managing demand across a system of airports serving the region.

Port Airport System Approach • Segment of the GA market most appropriate for PDX is the high-end cabin class business aviation aircraft.

– Challenges of smaller GA aircraft in the commercial aircraft environment

– Balance and preserve PDX’s role as the region’s primary commercial service airport

– Provide sufficient opportunity for GA facilities appropriate to PDX and continue to satisfy FAA grant assurances

– Continue to support strategic investments at more suitable reliever airports to provide good alternatives for smaller piston-engine aircraft.

Port Airport System Approach • Airport Futures/PDX Master Plan

– Each airport serves a unique need in a larger system – preserve capacity for commercial service aircraft – larger business aviation aircraft

• PDX Northside Redevelopment Strategy – Meet commercial service requirements long-term – Relocation of GA Campus – $24 Million Investment by Atlantic Aviation

• Why invest at PDX? – Opportunities for shared use facilities

Life Cycle Costs for Runway Replacement Overview • Significant monetary difference in life cycle costs (LCC) between B, C and

status quo • LCC analyzed over a 40-year period due to estimated life of runway • Status quo is not only the most expensive to construct but also has the

highest maintenance costs • LCC of status quo runway more than double the costs over the 40-year

period

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Total Initial + Maintenance

Alternative Runway Dimen. Total SqFt

Total Over 40 Yrs

Cost NPV % Inc

B 3600' x 75' 270,000 ($17.7) ($11.3) 0%

C 4500' x 75' 337,500 ($22.2) ($14.2) 25%

Status Quo 5400' x 150' 810,000 ($45.2) ($26.9) 137%