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Overview Airports are facing unprecedented challenges as they struggle to manage competing demands from a diverse group of stakeholders, decreasing financial resources, crowded airspace, and higher expectations of a traveling public. Responding to the needs of new and financially unsta- ble airlines as well as changing safety and security issues have overwhelmed many airports and their financial resources. To stay competitive in this industry, it is critical for airports to be on top of the changes and to maintain state-of-the art facilities with the safety and comfort of the traveling public as a top priority. This translates into significant funds invested to maintain and improve facilities. The capital planning process provides one of the most effective mech- anisms for organizations to plan and manage investments to get the best results for the available resources. Airports usually enumerate capital investment requirements in a capital improvement plan or program composed of many individual projects that together form a plan to maintain and improve airport facilities. A typical capital plan outlines how the plan was developed, how its constituent projects will be funded, and how the financing plan will affect airport rates and charges. However, every airport has a different capital planning process based on its size, com- plexity and organization, and many have not formally documented the processes. As demands for services increase while funding and staffing become more limited, many air- ports are so overwhelmed with resource constraints and organizational changes that the value and importance of collaborating on the airport capital planning process is not considered or abandoned. Currently, there is minimal guidance available on how to develop and implement an airport capital plan or how to measure the performance of key programs and projects, and there is little or no guidance on how to do either collaboratively. Airports continue to face chal- lenges to establishing collaborative procedures, developing useful performance metrics and selecting appropriate and cost-effective information technology systems to develop and imple- ment their capital plans. This Handbook provides the guidance airports have needed to address these challenges. Objective of the Collaborative Airport Capital Planning Process and the Handbook The objective of this Handbook is to research best practices in airport capital planning and outline a process for developing, implementing and overseeing a Collaborative Airport Capital Planning (CACP) process. This Handbook provides a guide for the development, implementa- tion and oversight components of the process, which details the basic goals, key actions, timing, key participants, methods for communicating and collaborating, recommended products and suggested results for a CACP process. 1 C H A P T E R 1 Introduction
This Handbook is a guide, not a prescriptive âhow toâ manual, for a CACP process. It includes methods for effective communication and collaboration among the parties responsible and accountable for the airport capital plan (ACP). It demonstrates the importance of a carefully planned and managed capital planning process and the value of a CACP process for developing financially sound capital plans, predictive execution and delivery of projects, accountable per- formance and reliable results regardless of political, management or leadership changes. This Handbook provides illustrative examples of ⢠Best practices currently in use, ⢠Methods and processes for implementing and sustaining collaboration throughout the process, ⢠Performance metrics for achieving collaboration (qualitative and quantitative), and ⢠Sample guidance strategies and methods to assist managers in achieving a CACP process. The CACP process has three components: 1) The Foundation: Leadership, 2) The Nuts and Bolts: Development and Implementation Phases of the CACP process; and 3) Checks and Bal- ances: Oversight. This Handbook includes a step-by-step process that outlines the actions to be completed in each step, defines the roles and responsibilities of key participants, recommends methods for collaboration and communication and suggests products to get the results. The process in this Handbook is designed for use by airports of different sizes, organizations, governing structures, and management characteristics, and will therefore be flexible in its appli- cation. Furthermore, this process is presented in detail in this Handbook. In an ideal world, all airports could do every step of this process in its entirety. However, smaller airports with fewer resources (funding and personnel) might start with a simplified version of the steps presented herein and build from there, and larger airports with hiring freezes and financial challenges might start with a streamlined version of the process to reduce the demand on resources. Figure 1 illustrates how the number of steps and level of detail may change depending on the airport size, number of facilities and complexity of capital projects and programs. This process can be simplified or streamlined to fit any size airport. The mechanics of the Development and Implementation phases are more complex due to the technical nature of the actions executed in those phases, and that complexity increases with the size of the airport and number of facilities. Regardless of the number of steps used in the Development and Implementation phases (see Chapter 5), it is always important to build a strong foundation to address the four areas of Lead- ership discussed in Chapter 4 (Agency Policy, Organization, Resources and Management) and to establish a system of Checks and Balances for executing the four elements of Oversight outlined in Chapter 6 (Performance Management, Evaluation, Meeting and Reporting and Motivation). These two components, Leadership and Oversight, are critical to establishing a collaborative organization that is flexible, transparent and accountable. Research This Handbook is based on research that included a literature search and preliminary and detailed surveys. The following is a summary of the research effort. The Literature Search. Hundreds of sources were examined, including documents and web- sites, from many industries, including ⢠Aviation; ⢠Transportation; ⢠Program and project management; ⢠Capital program and asset management systems and technology; and ⢠Housing, healthcare, and secondary and higher education. 2 Collaborative Airport Capital Planning Handbook
Introduction 3 3. Capital Planning 4. Programming 5. Draft ACP 6. Project Planning and Definition 7. Design 8. Construction 9. Project Closeout and Le ad er sh ip D ev el op m en t Im pl em en ta tio n GA/Non-Hub 1. ACP Policy, Planning and Programming 2. Draft ACP 3. Planning and Design 4. Construction, Closeout and Evaluation 5. Operation Small/Medium Hub 1. ACP Policy 2. Financial Planning Evaluation 10. Operation 1. Translate Mission and Goals 2. Targets, Revenue and Operating Expenses 3. Capital Plan Revisions 4. Identify Needs 5. Develop ACP Project Request List 6. Prioritize Projects 7. Identify Funding Sources 8. Analyze ACP Project Request List 9. Financial Analysis of ACP 10. Trade-Off Analysis 11. Draft ACP 12. Vet with Stakeholders 13. Final ACP Approval 14. Planning Studies and Project Definition 15. Design 16. Construction 17. Project Closeout 18. Project Evaluation 19. Operation Large Hub O ve rs ig ht Figure 1. The CACP process and airport diversity.
The research focused on ⢠Capital planning and programming, ⢠Project and program management, ⢠Information technology (IT), ⢠Collaborative business process, ⢠Communication and collaboration practices, ⢠Asset management, and ⢠Performance metrics and measurement. The Preliminary Survey: A brief survey was sent by email to 152 agencies. Eighty-three agen- cies representing 94 airports completed surveys, which was a 62% response rate. The survey cov- ered a diverse and representative sample of airports in terms of size, geography/FAA region, and governing structure. The Detailed Survey: Detailed, in-person surveys were conducted with nine agencies selected from the preliminary survey respondents as well as with nonairport agencies selected from the literature search. The purpose of this survey was to gather more detailed information on best practices and lessons learned on capital planning processes. Nine agencies were interviewed rep- resenting 19 airports (11 large-hub, one medium-hub, one small-hub, one non-hub and five GA airports), along with two state departments of transportation, one county transportation agency and one city transportation agency. What Is the CACP Process? The CACP process is a process to develop, implement and oversee ACPs collaboratively. It is designed for Executive Leaders, their Leadership Team, Capital Management Team (CMT) and Internal Stakeholders to create, foster, and nurture an environment in which information is shared and used to institutionalize and sustain a collaborative process for each step in developing and executing an ACP. What Are the Benefits of a CACP Process? In todayâs climate of constrained financial resources and shifting political priorities, it is nec- essary to ⢠Be flexible, ⢠Have a clear understanding of needs, ⢠Establish realistic measures and anticipate realistic results, ⢠Be accountable for financial and operational performance, and ⢠Be transparent in development and management of the capital plan and the delivery of those services. Sound capital planning and development through the CACP process as described in this Hand- book provides a foundation for transparent, accountable, and flexible financial management because ⢠Good infrastructure management and investment are needed to ensure the basic safety, security and operational efficiency of an airport. ⢠Carefully planned infrastructure investment can maximize the economic potential of an airport. 4 Collaborative Airport Capital Planning Handbook
⢠Prudent management of facilities and investments can reduce future operating costs, help avoid higher replacement costs, and minimize unexpected infrastructure crises. ⢠A more systematic approach to multi-year financial and capital planning can benefit the air- port by improving the basis for intergovernmental cooperation and decision making by increasing opportunities for lower financing costs and by improving access to state and fed- eral aid programs. ⢠A sound management structure with accountable and transparent processes and results increases the confidence of funding entities, stakeholders and the traveling public. ⢠Well-trained and motivated staff will have ownership in the process, pride in their products and recognition in the community. ⢠The agency will become an innovative leader in the industry and the community. What Is the Value of Collaborative Leadership? For collaboration to be effective, the Executive Leader must set the direction, set the tone, and lead by example. It is equally important for the Executive Leader to provide the resources for, and to create an expectation of, collaboration among the departments. The managers and task leaders in each department are leaders within their own departments and share the responsibil- ity of managing resources and collaborating with each other. An Executive Leaderâs commitment to collaboration in partnership with the department managers and leaders can provide the fol- lowing in an organization: ⢠An open and honest environment where accurate data is maintained, reliable reports are gen- erated, information and resources are shared, and work toward creative solutions occurs on a regular basis. ⢠A team committed to collaboration because it enjoys working together to innovate, find the best solution and take pride in the work and outcomes. ⢠A team that understands that solutions generated in a collaborative environment are more comprehensively analyzed and vetted. ⢠A team that with its performance is able to demonstrate the value and benefits of collabora- tion to the agency, its stakeholders and customers. Sustaining Collaboration Is the Challenge The challenge for this Handbook is to develop a CACP process that agencies can institution- alize in order to sustain it through changes in leadership or political and external influences. Therefore, a critical goal of the Handbook is to illustrate how a collaborative process can be real- ized and measured to demonstrate the value and benefits that are derived from collaborating to decision makers, operators, and stakeholders. Inherent in a collaborative process is a commit- ment by leadership to create a transparent and accountable organization, thereby increasing confidence in the process, empowering staff to save time and money and delivering reliable, high-quality, cost-effective projects and services to the traveling public. To that end, this Hand- book will endeavor to illustrate the steps and methods that an agency can employ to achieve an institutionalized, sustainable CACP process. How to Use the Handbook This Handbook is divided into seven chapters to guide airports of various sizes, composition, and governance in the development, implementation and oversight of a Collaborative Airport Capital Plan. Introduction 5
⢠Chapter 1 provides an introduction and describes the purpose of this Handbook and the value of a CACP process. ⢠Chapter 2 (Collaboration and Communication) describes the distinctions between collabo- ration and communication and the measures and indicators of successful collaboration. ⢠Chapter 3 (The CACP Process) provides a detailed overview of the various components of the CACP process (the inputs, outputs and feedback loop), the CACP process itself, and the CACP process participants. ⢠Chapter 4 (The Foundation: Leadership) describes the role of leadership in a CACP process in terms of policy, organization, resources and management. ⢠Chapter 5 (The Nuts and Bolts: Development and Implementation) details critical steps in the development and implementation of the CACP process. ⢠Chapter 6 (The Checks and Balances: Oversight) offers techniques for overseeing and managing a CACP process, including important elements of evaluations and motivations. ⢠Chapter 7 (Tools and Technology) identifies methods and offers suggestions for tools and technology used to facilitate a CACP process. More importantly, this Handbook provides a detailed guide to the steps, goals, actions, par- ticipants, methods, products and results associated with each phase in a CACP process. It also contains sample forms and model documents on various processes discussed in Chapters 4 through 6 along with a bibliography and a glossary of terms, abbreviations, and acronyms. The intent of this Handbook is to introduce airports to the fundamentals of the ACP process and guide airports in developing a collaborative framework for the successful development and execution of an ACP. 6 Collaborative Airport Capital Planning Handbook