Annual Report 2012 - Kansas City International Airport

LONG-TERM FINANCIAL PLANNINGThe Department has two long-term financial goals:1. To diversify more revenue away from aviation-related industries. The majority of theDepartment’s revenue is concentrated on the airline industry. To hedge against any futuredownturns in the airline industry, the Department has diversified its revenue sources into otherindustries. An example of this type of diversification includes the development of land for use inthe warehousing industry by Trammell Crow on the southeast corner of the airfield.2. To increase the percentage of fixed revenue. The Department currently has a far greaterpercentage of variable revenue than fixed revenue, which is favorable in a positive economicenvironment and unfavorable in a negative economic environment. To protect against any futuredeclining economic environments, and when it is financially prudent, the Department will pursuefixed versus variable revenue streams to protect itself. The Ambassador Building, a six-storyoffice building, is an example of a fixed revenue source. Fixed revenues are also being generatedat the Charles B. Wheeler Downtown Airport, by way of 96 newly constructed T-hangars forpersonal aircraft storage.RELEVANT FINANCIAL POLICIESUnder the terms of the various ordinances enacted for the issuance of revenue bonds, the AviationDepartment is required to maintain rates and fees sufficient to pay reasonable and proper operating andmaintenance expenses and scheduled debt service requirements.GRANT MANAGEMENTThe Department has relied heavily on Airport Improvement Program (AIP) grants, sponsored by theDepartment of Transportation, a parent agency of the Federal Aviation Administration, to fund many of itscapital improvement projects. Some of these projects include rehabilitation of airfield lighting, runway andtaxiway rehabilitation, closed circuit television camera upgrades at MCI and eight new GNG busses.Normally, these grants will fund between 75 and 90 percent of the entire project. The remaining portion isfunded by Department funds.MAJOR INITIATIVESMay 2011 - New Emergency Communication System Offers High Tech FlexibilityThe Aviation Department’s emergency notification process was upgraded to a more robust structure.Everbridge Matrix replaced the old pager-based system used by the Airport Communications Center(ACC). Everbridge utilizes a highly-configurable workflow and contact hierarchy based on an incident’stype, location and severity level to alert staff and administrators of issues. Users can receive alerts viaemail, text, voice and other communication channels. Notification to airport responders, which formerlytook more than 20 minutes, now takes less than two minutes so personnel can focus on managing andresponding to the incident, rather than making a series of notifications. The new system also providesintegrated reporting and journaling capabilities for post-incident analysis, risk mitigation and regulatorycompliance.June 2011 - MKC Continues Safety ProjectSome of the oldest portions of Charles B. Wheeler Downtown Airport were removed as part of continuingmodernization efforts by the Aviation Department. Fuel tanks dating back to the 1940s were disassembledand lifted away from the northeast corner of the Downtown Airport. This first phase began the removal ofthe obstructions in the runway protection zone for Runway 1/19 under new Federal AviationAdministration airport design requirements. These fuel tanks were previously utilized by the airlinesuntil they relocated to Kansas City International Airport in 1971 and later used in support of generalIV