Airport Master Plan 2012 - City of Waterville

As a part of a set of revisions introduced in December 2007 to Maine’s Aeronautics Act (Title 6:
Aeronautics), legislation was created regarding Airport authorities (MRSA c.10: Airport Authorities). In
summary, this legislation outlines:
The nature and general powers of an Airport authority;
Requirements for the creation of an Airport authority by a single municipality or county; two or
more municipalities or counties; and grandfathers in existing authorities;
Exemption from state, county, and municipal taxation for authorities for property and revenues;
Necessary approvals required by the State prior to the establishment of an Airport authority;
Requirements for a certificate of organization to remain on file with the Maine Secretary of State;
Operations and powers of Airport authorities;
Bonding rights and requirements; and
Necessary steps for the dissolution of an Airport authority.
As a general rule, a joint venture is required to be codified into law to ensure that all parties abide by a set
of standards that are fair to all involved in the venture. Based upon industry standards, the Joint Operating
Agreement (JOA) should identify, at a minimum, the following:
Date and plan of organization;
All parties entering into the JOA;
Ownership share of all parties as a percentage based on relative aggregate levels of Airport
capital contributions;
The governing entity of the JOA, including by-laws and duties;
Each entity’s duties and responsibilities with regard to the operation, management, and
development of the Airport;
Funding sources and budget requirements;
Purchasing authority for real property, avigation easements, runway protection zones, etc;
An office location for the managing entity of the JOA;
Insurance requirements for each entity; and
Conditions and processes for dispute arbitration and termination of the JOA.
7.5 Requirements for Financing Airport Operations
In order to finance the operation and management of the Airport, a budget must be put into place.
Funding this budget can come from several sources including Airport leases, the sale of Airport assets
including non-aviation use Airport property, and from the budgets of each entity involved in the JOA,
which is generally the primary source of funding. The amount of funding from each entity’s budget may
subject to negotiation and generally the percentages should be reviewed every five years to determine if
they are still applicable based on the financial health of each entity.
Additional funding can be attained through the Airport’s Capital Improvement Program (CIP) funds,
which are in part funded by the FAA for safety improvements at Airports. This funding usually defrays
the costs of maintaining an Airport to approximately 95% of a projects cost apportioned to the FAA and
the remaining 5% spread among state and local funds. This can significantly improve an Airport’s ability
to maintain an Airport by alleviating its financial burden for planning and construction projects, thus
allowing more funds to be available for other items, such as general maintenance and administration
expenses. Items that are generally eligible under CIP funds include, but are not limited to:
Runway, taxiway, and apron pavement rehabilitation, which usually includes improvement to
airfield lighting associated with said pavement;
The City of Waterville Maine
Airport Management Structure Assessment – Page 7-22
Airport Solutions Group, LLC & The Louis Berger Group, Inc. December 2011