AGENDA AND BUSINESS PAPER

 

 

Airport Advisory Committee

 

 

 

To be held on
Wednesday

19 December 2018

AT 6.00pm

 

 

 

Cnr Baylis and Morrow Streets,
Wagga Wagga NSW 2650
PO Box 20, Wagga Wagga

 

Phone: 1300 292 442
Fax: 02 6926 9199
Website: www.wagga.nsw.gov.au

 


Reports submitted to the Airport Advisory Committee to be held on Wednesday 19 December 2018.

Airport Advisory Committee AGENDA AND BUSINESS PAPER

Wednesday 19 December 2018

ORDER OF BUSINESS:

CLAUSE               PRECIS                                                                                            PAGE

ACKNOWLEDGEMENT OF COUNTRY                                                                              2

APOLOGIES                                                                                                                      2

Confirmation of Minutes                                                                                          2

DECLARATIONS OF INTEREST                                                                                        2

Reports from Staff

RP-1            Airport Advisory Committee - Meeting Dates 2019                         3

RP-2            2019/20 Draft Airport Budget                                                                5

RP-3            Draft Preliminary Airspace Review of Wagga Wagga NSW       14

RP-4            Wagga Wagga Airport Security Compliance System Test Findings       16

RP-5            Airport Security Changes - Preliminary Discussion                   20

QUESTIONS WITH NOTICE 


ACKNOWLEDGEMENT OF COUNTRY

 

 

APOLOGIES

 

 

Confirmation of Minutes

CM-1              Airport Advisory Committee Minutes - 3 October 2018       

 

Recommendation

That the Minutes of the proceedings of the Airport Advisory Committee Meeting held on 3 October 2018 be confirmed as a true and accurate record.

 

 

Attachments  

1.

Minutes - Meeting held 3 October 2018

26

 

 

 

DECLARATIONS OF INTEREST


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                              RP-1

 

Reports from Staff

RP-1               Airport Advisory Committee - Meeting Dates 2019

Director:       Caroline Angel

         

 

Analysis:

Proposed 2019 meeting schedule.

 

 

Recommendation

That the Committee adopt the 2019 meeting schedule

 

Report

In the Airport Advisory Committee Terms of Reference it states that the Committee meet quarterly or as determined by the Committee.

 

Meetings are proposed to be held at 6pm on the first Wednesday of the month with the dates being as per the following:

 

·   6 February 2019 - to accommodate the 2018/19 Christmas and school holiday period

·   1 May 2019

·   7 August 2019

·   6 November 2019

 

Additional workshops and meetings may be held when required.

Financial Implications

N/A

Policy and Legislation

N/A

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We are informed and involved in decision making

Outcome: Everyone in our community feels they have been heard and understood

 

Risk Management Issues for Council

No specific issues identified.

Internal / External Consultation

N/A

   


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                              RP-2

 

RP-2               2019/20 Draft Airport Budget

Author:          Carolyn Rodney 

Director:       Natalie Te Pohe

         

 

Summary:

Council staff are in the process of compiling the draft budget for the 2019/20 Long Term Financial Plan (LTFP).  This document provides the Committee with the timeline for the budget documents, the draft operating budget and the draft capital works program.

 

 

Recommendation

That the Committee:

a       Receive and note the draft budget details, including the proposed fees and charges contained within the report

b       Provide feedback to Council on the draft budget by 11 January 2019

 

Report

Budget Timeline

 

The timeline for the compilation and adoption of the 2019/20 budget is shown below for the committee’s information:

 

 

Financial Implications

Draft Operating Budget 2019/20

 

Attachment A details the total draft operating budget for the Airport for the 2019/20 financial year.  Small increments and decrements have been approved by Management taking into account prior year actuals.

 

For comparison purposes, the attachment includes a full year of actuals for 2017/18, plus the current adopted budget for the 2018/19 financial year.

 

Draft Operating Result Summary:

 

 

Draft Budgeted Total Operating Income*

 

 

$4,498,693

 

Draft Budgeted Total Operating Expenditure

(Including Depreciation)

 

 

$6,238,855

    Draft Budgeted Operating Deficit

($1,740,162)

 

New operating budget request increases:

 

·    Proposed increase to Airport Building, Services & Systems M&R

(job number 47025, currently $51,923)

 

$20,000

·    Proposed increase to Airport Pavement M&R

(job number 47036, currently $65,564)

$20,000

    Total new operating budget request increases

$40,000

    Revised Draft Budgeted Operating Deficit

($1,780,162)

 

 

Airport Fees and Charges

The proposed fees and charges for 2019/20 have been attached for discussion with the Committee. The proposed fees have been increased by 1.9% which is reflective of the all groups CPI for March 2018 and consistent with the approach utilised for the 2018/19 fees and charges also. It should be noted that the latest CPI for September 2018 was also 1.9%.

 

For the fees and charges to be adopted by Council for implementation from 1 July 2019, a Council report will need to be presented at the January Council meeting so that public exhibition can occur in February with final adoption of the proposed fees and charges in March. Officers would subsequently incorporate the adopted fees in the final Long Term Financial Plan, and Council’s operational plan for 2019/20 for consideration to be adopted by Council in its entirety in June. This timeframe, while tight, would then provide airport users with a three-month notification period prior to commencement of the new fees and charges from 1 July 2019.

 

Draft Capital Works Program 2019/20

 

It is important to note that as part of the review of the Airport operations, an updated masterplan for the Airport will be undertaken.  There may be additions/adjustments to the capital works program for the Airport once the masterplan has been completed.

 

Capital Project Details:

 

a)    Airport – Terminal Flooring & Seating

Proposed Budget amount: $70,200

Year: 2019/20

Funding Source: Airport Reserve

New item requested for the 2019/20 long term financial plan (LTFP)

 

 

 

Project Notes:

 

This project is for the replacement of flooring and seating in the Terminal check-in lounge. It is proposed to replace the existing flooring carpet tiles with a durable commercial floor covering as the existing covering is 14 years old and can no longer be kept clean. Replace 100 seats with synthetic material covered seat that is dirt and stain resistant as the existing fabric covered seats can no longer be cleaned effectively.

 

The airport terminal is cleaned under contract twice per day, including vacuum cleaning.  The carpets and seat upholstery is steam cleaned every six month.  The flooring and seats are 12 to 14 years old; past their life expectancy, and can no longer be cleaned effectively.

 

Numerous complaints have been received from customers regarding the condition and appearance of the items.  Professional advice is that they have been stained over time by liquids and other substances to the point that there are no methods available through which they can be cleaned. The total surface area of the carpeted areas of the terminal is 700m², with a total of 200 seats.  However, the areas including the arrivals passage and screened departures lounge have not been subjected to the same amount of staining and traffic movements.  Likewise the seats in the departures lounge. It is therefore deemed adequate to initially replace the flooring in the check-in lounge only (400m²), and those 120 seats.  Initial quotes indicate a cost of ±$90/m² for industrial quality carpet tiling, and around $285/seat.  The latter may be reduced if an upholsterer can be found who can re-upholster the seats with a synthetic high quality material.  The latter option will enable Council to use the existing frames and thus save costs.

 

b)   Airport – Replacement of Screening Equipment

Proposed Budget amount: TBA

Year: 2020/21

Funding Source: Airport Reserve

New item requested for the 2019/20 LTFP

 

Project Notes:

 

The Explosive Trace Detection Equipment currently in use at Wagga Airport are no longer being manufactured by the supplier, although technical and consumables support will be available until December 2020. These devices will then effectively have reached their end of life. Aviation Transport Security Regulation mandates the use of these devices within the screening processes. The Department of Home Affairs have issued a list of approved screening equipment to industry, and Council’s current equipment is not included in the list post December 2020. This equipment has to be replaced at the end of life against the timeframe of December 2020 as set by the Department.

 

This item will be included in the mandated security upgrade requirements for Wagga Airport.

 


 

Airport Reserve Summary – 2019/20

 

The below table gives a snapshot of the Airport Reserve, if all operating income and expenditure budgets are met for both the current financial year and the 2019/20 financial year.

 

 

2018/19

2019/20

Opening Balance (Estimate for 2019/20)

$63,685

$498,494

 

Draft Budgeted Operating Deficit

 

($1,762,230)

 

($1,740,162)

Back out non-cash Depreciation

$2,895,151

$2,893,504

Add in Principal Loan Repayments

($662,112)

($880,639)

 

Draft Transfer to Reserve (FY Operating Result)

 

$470,809

 

$272,703

Proposed Capital projects funded from Reserve

($36,000)

($70,200)

Total Net Reserve Movement

$434,809

$202,503

Estimated Closing Balance of Reserve

$498,494

$700,997

 

Policy and Legislation

POL 021 – Financial Reserves for Future Expenditures

POL 013 – Return on Investment Council Businesses Policy

POL 052 – Budget Policy

 

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

Risk Management Issues for Council

Without adequate revenue to cover the costs of operating the Airport, there is the risk that the Airport will not be financially sustainable into the future

Internal / External Consultation

Council is consulting with the Airport Advisory Committee to review the proposed draft budget for the 2019/20 Long Term Financial Plan.

 

Attachments  

 

1.

Attachment A - 2019/20 Draft Operating Budget

 

2.

Draft 2019/20 Fees and Charges

 

 

 


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                                                    RP-2

 

 


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                                                                RP-2

 


 


 


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                              RP-3

 

RP-3               Draft Preliminary Airspace Review of Wagga Wagga NSW

Author:          Darryl Woods 

Director:       Caroline Angel

         

 

Summary:

Preliminary Airspace Review of Wagga Wagga, NSW – Draft.

 

 

Recommendation

That the Committee note the contents of the attached Preliminary Airspace Review of Wagga Wagga, NSW.

 

Report

The OAR (Office of Air Regulation) has been preparing a Preliminary Airspace Review for the airspace in the vicinity of Wagga Wagga. OAR visited Wagga Wagga in September 2018 to obtain stakeholders comments. These stakeholder visits were followed by an open consultation period which concluded in October 2018 at which point drafting of the Review commenced.

 

Drafting of the Review has now been completed and will be release on the CASA website scheduled for 14 December 2018.  The Review will remain in Draft for general consideration until the end of January 2019.

 

Airport Advisory Committee members can make comment directly to CASA through the website, and Council would appreciate being informed if committee members make comment on the report.

 

Financial Implications

N/A

Policy and Legislation

Civil Aviation Act 1988

Wagga Airport - Aerodrome Manual

Wagga Airport - Aerodrome Emergency Plan

Wagga Airport - Safety Management System

 

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We are informed and involved in decision making

Outcome: Everyone in our community feels they have been heard and understood

 

Risk Management Issues for Council

N/A

Internal / External Consultation

N/A

 

 

  

 


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                              RP-4

 

RP-4               Wagga Wagga Airport Security Compliance System Test Findings

Author:          Darryl Woods 

Director:       Caroline Angel

         

 

Summary:

Notification of Security Compliance system test findings from  the Aviation and Maritime Security Division.

 

 

Recommendation

That the Committee note the contents of this report.

 

Report

System compliance tests were conducted by Aviation Security Inspectors from the Aviation and Maritime Security Division at the Wagga Wagga Airport on 27-28 November 2018.

 

Advice from the Aviation and Maritime Security Division was that no non-compliance issues were detected during the system tests (as per the attached). 

 

Financial Implications

N/A

Policy and Legislation

Aviation Transport Security Act 2004

Aviation Transport Security Regulations 2005

Council’s Transport Security Program Oct 2018

Link to Strategic Plan

Safe and Healthy Community

Objective: We are safe

Outcome: We promote safety and safe behaviours

Risk Management Issues for Council

N/A

Internal / External Consultation

N/A

 

Attachments  

 

1.

Wagga Wagga Airport Security Compliance System Tests - Findings

 

  


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                                                    RP-4

 


 


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                              RP-5

 

RP-5               Airport Security Changes - Preliminary Discussion

Author:          Darryl Woods 

Director:       Caroline Angel

         

 

Summary:

The purpose of this report is to include the committee in initial discussions for the development of solutions to incorporate the larger footprint screening equipment at the Wagga Airport.

 

 

Recommendation

That the Committee note the contents of this report.

 

Report

The Department of Home Affairs has instructed Wagga Wagga City Council to Strengthen Aviation Security Requirements at Wagga Airport with the implementation of new security measures. The Department has also instructed that Council do not discuss the specific equipment types with anybody, accept on a needs to know basis.  Council has included a redacted version of the advice from the Department of Home Affairs at Attachment A.

 

As the Airport Advisory Committee is reviewing and making recommendations on budgets and capital works, the description of the new security measure requirements can only be broadly discussed.

 

Grant funding applications are being received by the Federal Government, closing February 2019.  Council has been allocated $405K to purchase the new equipment and the Federal Government’s policy on funding is that the Federal Government will only cover equipment costs.

 

The new equipment requires a larger footprint, and will require a rise in secondary scanning of passengers, as there will be an increase in the number of scanning rejections.  The new equipment will also require a “run-up” lane to the equipment to be at least 20m in length.

 

The purpose of this report is to include the committee in initial discussions for the development of solutions to incorporate the larger footprint screening equipment at the Wagga Airport. Council will give a presentation on initial thought and options at the committee meeting.

 

Financial Implications

Unknown, will be developed during the solution development.

Policy and Legislation

Directive from the Federal Department of Home Affairs

 


 

Link to Strategic Plan

Safe and Healthy Community

Objective: We are safe

Outcome: We promote safety and safe behaviours

 

Risk Management Issues for Council

Funding options for infrastructure will be required.

Internal / External Consultation

Airport Advisory Committee

Airport Association of Australia

 

Attachments  

 

1.

Home Affairs Advice re Strengthening Aviation Security Requirements - Redacted - Dec 2018

 

 

 


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.                                                                    RP-5

 


 


 

  


Report submitted to the Airport Advisory Committee on Wednesday 19 December 2018.

 

QUESTIONS WITH NOTICE 

 


Reports submitted to the Airport Advisory Committee to be held on Wednesday 19 December 2018.