Prineville City Council April 12, 2016 ROBERTS FIELD MUNICIPAL AIRPORT

CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016 Organization Projects Air Service Phoenix Flight Revenue Guarantee - Past & Present - Process Customer Initiatives Update to Cover:

Organization CITY COUNCIL MEETING - AIRPORT UPDATE April 12, FTE Positions Airport Director Operations Manager Ops/Maintenance Supervisor 6 Ops/Maintenance Facilities Supervisor 5 Custodial Security Manager Security Assistant Business Coordinator Aviation Program Manager Office Assistant III Deputy Director *500+ estimated jobs generated from RDM EngineerLegalAir Service General Airport Consultant Team

Current/Upcoming Projects CITY COUNCIL MEETING - AIRPORT ANNUAL UPDATE August 28, Phase II 5-23 Reconstruction (14M) 2.Runway Re-designations 3.Taxi Way B Reconstruction (3.5M) 4.Master Plan (600K) Reconstruction 2017 (10M) 6.Ramp Re-design Advertising/Marketing Expansion *$50M in projects over the next 5 years

Commercial Air Service CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016 TRAFFIC AND CAPACITY TRENDS Increased frequency, capacity and/or larger aircraft in nearly every nonstop market. Record enplanements and load factor 300K+ estimated in 16/17 fiscal year

Current Air Service CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016

Garnering new service: -All 5 airline Headquarters were visited -Attended Jump Start and Mead & Hunt Conference Additions this year: -American Airlines LAX flight made year round with increase in plane size -Alaska Airlines added 5 th Seattle flight for summer Alaska will bring back additional seasonal Portland flight in SkyWest added 2 New San Francisco flights for summer American Airlines begins daily direct service June 2 nd to PHX Sky Harbor Upcoming Air Service CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016 *20K a year spent on garnering service

Phoenix Flight Depart RDM at 12:01pm ---- Arrive at PHX 2:20pm Depart PHX at 8:15pm ---- Arrive RDM at 10:20pm -Beginning June 2, CRJ-700 series aircraft which accommodates 67 passengers/9 first class with option to increase to CRJ-900 -PHX offers more than 300 daily flights to more than 81 destinations CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016

SCASDP Grant – SFO 2008 CITY COUNCIL MEETING - AIRPORT UPDATE April 12, In 2008 RDM was awarded a $450K DOT grant 2.Specific for adding additional capacity to southern hub 3.San Francisco additional flights were secured Total Package was $710K including: $450K Grant Revenue Guarantee $175K Local Revenue Guarantee $75K in Marketing $10K in-kind misc. (SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM) Continued Service

SCASDP Grant – LAX 2013 CITY COUNCIL MEETING - AIRPORT UPDATE April 12, In 2013 RDM was awarded a $500K DOT grant 2.Specific for attracting service between RDM and LAX 3.Includes Revenue Guarantee, Travel Bank and Marketing Total Package was $1.235M including: $500K Grant Revenue Guarantee $100K Local Revenue Guarantee $400K Local Travel Bank $235K in Marketing (70K airport/165K COVA) (SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM) Continued Service

SCASDP Grant – PHX 2015 CITY COUNCIL MEETING - AIRPORT UPDATE April 12, In 2015 RDM was awarded a $500K DOT grant 2.Specific for attracting service between RDM and PHX 3.Includes Revenue Guarantee and Marketing 4.RDM was 1 of 49 competing communities 5.Only 11 were selected Grant Includes $500K Grant Revenue Guarantee $100K Local Revenue Guarantee $75K in Marketing (25K airport/50K COVA) (SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM)

Revenue Guarantee - PHX CITY COUNCIL MEETING - AIRPORT UPDATE April 12, Quarterly Airline Settlement Period Reconcile Total Revenue against Minimum Revenue Requirement 2 If “Revenue Shortfall” occurs, Airline will invoice RDM for amount 3 RDM will pay Airline the “difference” after verifying 4 $100K, including Prineville amount, will be held in Bend Chamber $500K is reimbursable from D.O.T. 5 RDM will request reimbursable from DOT (74.07%) and Chamber (25.93%) 6 Must be used in 2 years If not all used, the remaining will be returned pro-rated -$75K in marketing will not be reimbursable -Extra $100K invested in marketing outside of grant

Prineville: -23,542 origin and destination travelers in % retention rate for RDM Phoenix: - After PDX, Phoenix is the #1 final destination for travelers leaving Prineville Importance to Prineville CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016

Customer Service Initiatives CITY COUNCIL MEETING - AIRPORT UPDATE April 12, Wi-Fi Upgrade 2. Kid Zone Expansion 3. Charging Stations 4. Customer Service Feedback 5. Better Signage 6. AIT Scanner (TSA) 7. Increasing Screening Agents (TSA)

Questions? CITY COUNCIL MEETING - AIRPORT UPDATE April 12, 2016