“Merrill Field (MRI)-Past, Present, and Future”

ByD. Ralph Gibbs, Ph. D.

Airport ManagerMarch 7, 2019

donald.gibbs@anchorageak.gov

Overview Who are we? “In the beginning…” Today Operations Fiscal Airport Improvement Programs (AIP) Airport Management MRI-Part of MOA Concluding Remarks

MRI-Who are we? Second busiest airport in Alaska! Second only

to Ted Stevens IAP. Economic Engine for Anchorage and Alaska Given the paucity of Alaskan road systems,

flight operations out of MRI is the only way to transport people and cargo to many interior locations.

Courtesy: Anchorage Museum of History and Art

Established in 1930 Anchorage had 4,000 residents Moved from the Delaney Park Strip to its

current location

In 1932, renamed from “Aviation Field” to “Merrill Field” in memory of Russell Hyde Merrill

Mr. Merrill died in an airplane crash in Cook Inlet in September 1929.

Pioneered the first air routes to the Kuskokwim region.

“In the Beginning…”

Merrill Field Landfill Unsupervised dump until 1952 Opened by the City as a controlled

landfill in 1952

Courtesy: Anchorage Museum of History and Art

“In the Beginning…”

• MRI Land Area = 436 acres• Three Runways = 07/25; 16/34; 05/23•Taxiways=19• Apron = 102 Acres• Longest Runway = 4,000 feet• Physical plant includes RWY, TWY, Aprons, Roadways, Utilities, Equipment & Buildings = $49M• MRI maintains 3 miles of roadway and 6 miles of storm drain

Assets Over the Landfill: Roads: 5,650 LF Taxiways;: 7,150 LF Aprons: 55 AcresGravel-Ski Runway

MRI Today

MRI Today

MRI Operations

Alaska’s first official airport 1 registered pilot for every 58 residents in

Alaska 41 percent of the state’s population lives in

Anchorage Merrill Field is an integral part of Alaska’s

transportation network

MRI Operations MRI is classified as a Non-Hub Primary

Airport More than 10,000 enplanements but less than

0.05% of the U.S. total. Serves as General Aviation Reliever to

Anchorage International.

MRI Operations MRI Total Operations in 2018

Ranked 86th busiest out of 520 US airports w/ 151,400 annual operations.

Ranked 46th busiest out of all General Aviation (GA) non-hub airports w/ 151,400 annual operations.

Ranked 45th busiest out of 520 US airports w/ 67,453 annual touch-n-go operations. Note: A reflection of high volume flight training operations.

MRI Operations MRI Operations-Busiest month (July) in

2018 Ranked 49th busiest out of 520 US airports w/

20,103 annual operations. Ranked 20th busiest out of all General Aviation

(GA) non-hub airports w/ 20,103 annual operations.

Ranked 33rd busiest out of 520 US airports w/ 7,980 annual touch-n-go operations. Note: A reflection of high volume flight training operations.

MRI Operations

Statewide 2018 annual airport operations Ted Stevens-275,189 Merrill Field-151,400 Fairbanks-112,071 Juneau-106,823 Bethel-84,169 Kenai-44,383 Kodiak-34,822 King Salmon-27,811Note: MRI has ~ 20% of all flight operation within the state

MRI Operations

Ranked 1st in “based” aircraft in AlaskaMerrill Field: 900 aircraftLake Hood: 781Fairbanks: 480Ted Stevens IAP: 150~10% of the aircraft within the State are

based at MRI

MRI Operations

Does not fall under FAR Part 139 Rules, i.e., “Certification and Operation: Land Airports serving certain carriers.”

Does not have scheduled FAR Part 121 air carrier operations.

Does not have the security requirements of a certificated airport.

MRI Fiscal48 Long Term ground leases which support approximately 50 aviation related businesses on the airport.2,800,000 square feet of leasable landImprovements & maintenance on the lease lots, including the buildings, are leaseholder responsibility.

MRI Fiscal85,000 sq. ft. of rentable building space for property management.The rate for leased ground is ~$0.212 per square foot

MRI FiscalThere are 7 aviation fuel vendors located on the airport. Fuel vendors pay a fuel tax of $0.08 per gallon to the airport.Combined sales of $750K to $800K of avgas sold annually.

MRI Fiscal

There are ~ 900 aircraft based on Merrill Field

The airport leaseholders have ~500 aircraft on their lotsThe airport manages another ~400

aircraft through individual parking permits

MRI Fiscal

Tie down aircraft parking fees:Tail-in $60 per monthDrive Thru-$70 per monthElectrical tail-in $75 per monthElectrical Drive Thru-$85 per month

MRI Fiscal

Main Revenue Sources: Lease Fees & Property Rentals – 65% Aircraft & Vehicle Parking Fees – 25% Aircraft Fuel Flowage Fees – 10%

MRI Fiscal

Primary Expenditures: Labor Costs – 60% Utilities Charges – 15% Depreciation (Non-Contributed) – 10% Intergovernmental Charges – 10% Fuel & Supplies – 5%

MRI Airport Improvement MRI Capital budget has been approximately

$2M to $4M per year. Sourced by federal grants through the FAA’s

Airport Improvement Program (AIP). FAA – 93.25% (was 95%) MRI Match– 6.75% (was 5% w/state

picking up 2.5%)

MRI Airport Improvement MRI had no debt service between 1989 and

2017. However, in 2015, the FAA began offering

large infrastructure investments in MRI that required ever increasing matching funds.

MRI Airport Improvement 2011-$3.96M/ MOA Match $104K 2012-$3.99M/ MOA Match $133K 2013-$1.9M/ MOA Match $65K 2014-$1.6M/ MOA Match $46K 2015-$6.57M/ MOA Match $187K 2016-$8.15M/ MOA Match $438K 2017-$10.8M/ MOA Match $575K 2018-$12.3M/ MOA Match $670K

MRI Airport Improvement Capital Improvements including dynamic

compaction. 2011- Sweeper/vacuum truck, rehab TWY Q

phase 2, & security/lighting upgrade. 2012-Twy Q and Apron phase 3, and security

improvements phase 2 2013-Snowblower and runway lighting vault 2014-Master plan phase 2 and Twy Q phase 4

MRI Airport Improvement Capital Improvements continued

2015-security improvements phase 3 and City Electric property acquisition

2016-Twy Q phase 5 & Rwy 5/23 lighting 2017-Secuity phase 4, Txy Q phase 6 2018-Txy Q phase 7 and rehab Txy G

MRI Airport Improvement Capital Improvements for 2019 (matching

funds permitting) Twy C south GA apron, lighting, & signage Safety and security equipment Snow removal equipment, i.e., motor grader and

dump truck RIMP (Runway Incursion Mitigation Program)

issues & ALP update

MRI Airport Improvement AIP for 2019-Continued (matching funds

permitting) Sandoval property demolition Acquire land for development Merrill Field Drive airport access road repair. If FAA provides 100% funding w/ no Match. This project represents $15M upgrade.

Airport Management Workforce – 9 full-time employees

responsible for: Airport Development Management Services Finance Leasing of Airport Property, to include

cultivating new lease agreements

Airport Management Workforce – (continued)

Airport Maintenance Personnel Public Relations

Meets with the surrounding neighborhood Community Councils

Responds to aircraft noise complaints

Airport Management Controls the Airport’s Operating and Capital

Budgets Operating costs are the day-to-day expenses Capital costs are for construction of R/Ws, T/Ws,

Aprons, & Equipment, etc.

Airport Management

Plans for and Implements Airport DevelopmentCompiles Airport Master Plan – 20 year

planning document approved by FAACoordinates Airport Improvement Projects

which include: Obtaining federal grant funding Contracting for design services and

construction

Airport ManagementAirport SecurityWorks with the FAA and local communities to

keep the airport safe and secureInstalls and maintains airport fencing

and gates Airport Maintenance includes- Snow removal Pavement crack sealing Mowing the grass

MRI-Part of MOA

In the Municipality of Anchorage •Legislative power is vested in the Municipal Assembly

• Comprised of 11 members representing the municipality from Girdwood to Eagle River.

•Executive and administrative power vested in the Mayor.

MRI-Part of MOARules and Regulations for the management of MRI are provided by Anchorage Municipal Code as approved by Assembly Ordinance Also guided by FAA regulations and the laws of the State of Alaska.

MRI-Part of MOA

Mayor appoints the Merrill Field Airport Manager

Mayor also appoints Municipal Airport Commission (MAAAC) which is comprised of 7 members

All Mayoral appointments are subject to confirmation by the Municipal Assembly

MRI-Part of MOARules & Regulations for the Management of

Merrill Field are stated in the Anchorage Municipal Code as approved by Assembly Ordinance.All mandatory airport fees and charges are

codified.Requirements for leasing of airport land is

codified.

MRI-Part of MOA

By Municipal Ordinance – MRI is restricted to aircraft weighing 12,500 pounds or less (except for medevac flight).Enacted in the 1950’s when Anchorage IAP initially opened.Planning to request increase to accommodate business jetsSeeking investor for a “Million Air-like” FBO

Concluding Remarks

The Airport Manager is responsible for all day-to-day operations of the Airport!!

Questions?