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Item C11 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY MEETING DATE: 12/21/05 DIVISION: COUNTY ADMINISTRATOR BULK ITEM: YES DEPARTMENT: AIRPORTS STAFF CONTACT PERSON: Peter Horton AGENDA ITEM WORDING: Approval of FY 2006 Rates and Charges study for the Key West International Airport, to become effective December 1,2005. ITEM BACKGROUND: Federal Aviation Administration guidelines require Airports to periodically update their Rates anc Charges, to insure that Airports maintain a rate structure that makes them as self supporting as possible.. PREVIOUS RELEVANT BOCC ACTION: Approval of previous Rates & Charges update, October 16,2002, and September 20,2000. CONTRACTIAGREEMENT CHANGES: New Rates & Charges Study STAFF RECOMMENDATION: Approval TOTAL COST: n/a BUDGETED: nla COST TO AIRPORT: nla COST TO PFC: n/a COST TO COUNTY: n/a SOURCE OF FUNDS: nla REVENUE PRODUCING: Sets Rates AMOUNT PER MONTH !YEAR: APPROVED BY: County Attorney nla OMS/Purchasing nla Risk Management nla AIRPORT DIRECTOR APPROVAL ~rton DOCUMENTATION: Included X Not Required AGENDA ITEM # DISPOSITION: Ibev APB Key West International Airport 3491 S. Roosevelt Boulevard Key West, Florida 33040 (-.' .....-- BOARD OF COUNTY COMMISSIONERS Mayor Dixie M. Spehar, District 1 Mayor Pro Tern Murray E. Nelson, District 5 George Neugent, District 2 CI1ar1es "Sonny" McCoy, District 3 David P. Rice, District 4 O<~~2/ ~o~~~E (305) 294-4641 September 29, 2005 To: Tenant Airlines - Key West International Airport Re: Proposed Airline Rates & Charges Key West International Airport Enclosed for your review is an updated rates and charges analysis prepared by Newton & Associates, Inc. containing proposed new rates to be effective December 1, 2005. This update uses substantiaJJy the same methodology as was used in previous analyses that formed the basis for the existing Airport rates and charges schedule. The percentages used to allocate Operating and Maintenance (0 & M) costs to the various cost centers are substantially the same as used previously. The new fees are based upon the airport's FY 2006 0 & M Expense budget which shows the need to increase airline rates and charges in order for Monroe County ("County") to recaver its cost of providing the Airport and its facilities. The increase is driven by increases in the Airport's 0 & M expenses since the last analysis was completed and are primarily attributable to security related expenses that have occurred since the last rate adjustment. As in the past, the County continues to seek available federal and state funds to offset its security costs. As a result of rates and charges analysis, the average terminal rental rate increases to $39.83 per square foot from the current $31.18, and the landing fee rate increases to $2.34 from the current rate of $1.77. Even with the noted increases, the cost per enplaned passenger including security costs of $4.88 remains well within industry standards. Please review the enclosed analysis and provide us with your written comments, if any. If necessary, we will schedule a meeting with the airlines to discuss any questions or concerns that you may have. ~+t~ Peter Horton Director of Airports PJH/bev Cc: Bevette Moore - Airpon Business Office Raben J. Walter - Newton & Associates, Inc. Frank C. Newton III _ Newton & Associates, Inc. KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SUMMARY: Airline Terminal Rentals: Airline Terminal Revenue Requirement Airline Terminal Space Required Average Rental Rate per Square Ft. Current Average Rental Rate per Square Ft. % Increase (Decrease) over Current Levels Airline Landing Fees: Airline Landing Fee Revenue Required Estimated Airline Landing Weight (1,000 lb. units) Estimated Passenger Airline Landed Weight Passenger Airline Landing Fee Revenue Airline Landing Fee Rate Requirement Current Airline Landing Fee Rate % Increase (Decrease) over Current Levels Estimated Airline Revenue Landing Fees and Terminal Rents assuming New Rates Landing Fees and Terminal Rents assuming Existing Rates % Increase Cost Per Airline Enplaned Passenger (Terminal Rent and Landing Fee'5) Terminal Area $568,099 14,262 $39.83 .. _~29.66 34% Cost Per Airline Enplaned Passenger (Terminal Rent, Landing Fees and TSA Reimbursement Costs) Newton & Associates.lnc. Airfield Area $781,607 333,329 328.701 $770,754 $2.34 $1.77 32% $1,}38,853 $1 ,004,BJ 1 33% $4.09 $488 Page 1 KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE A: Monroe County. Analysis Actual and Budgeted M&O Expense FY04 FY05 FY 06 Actual/1 I Budqetl2 Budqet 13 Personal Services 510120 Admi~lstratlve $188,004 $191}64 $220,792 Custodial 77.489 79,039 0 Maintenance 148.562 151533 137,928 Secunty 58,116 0 0 ARFF 553.058 564,119 800.709 Other 87,207 88,951 25,298 510140 Overtime 20,000 20,000 20,000 Adjustment Total Personal Services $1,132.436 $1,095.406 $1,204.727 Annual Percentage Change 9,6% .3.3% 10.0% Contractual Services 530310 Professional Services $6091 $5,000 $5,000 530316 Medical Services 1,170 2,475 2,475 530318 Lega I Services 0 0 0 530340 Other Contractual Services 217,550 194,739 412,657 53041 0 Phone & Postage/Freight 29,245 23,582 24,289 Security Services 1,169,748 1,273.400 1,337.070 Less Operating Security Grants (615045) (650,000) (682.500) 530440 Utility Services 281,597 237.434 244,557 530440 Rentals & Leases 4.884 5,651 5,821 530450 Insurance 27.240 38,200 38.200 530451 Risk Management Charges 28.864 30,596 30,596 530498 AdvertiSing 1,251 .1,000.. 1,000 Total Contractual Services $1,152,596 $1162,077 $1,419,165 Annual Percentage Change -15.2% 0.8% 22.1% Supplies & Materials 530510 Office Supplies $4,720 $6.604 $6,802 530520 Operating Supplies 74,001 74.752 76,995 530521 Gaso:ine 0 300 300 530523 Diesel Fuel 0 500 500 530528 Internal Fuel 3.605 1,806 1,806 530540 Books. Pubs, Subs, Educ. Mem 14,092 9,543 9_, 5~~ ...---.- Total Supplies & Materials $96417 $93,505 $95,946 Annual Percentage Change 5.1% .3.0% 2.6% General 590910 County Overhead Allocation $126.485 $126.485 $126,485 530400 Travel & Per Diem 22.345 16,925 25,095 530409 Vehicle Maintenance Charges 8.300 8,300 8,300 530460 Repairs and Maintenance 163,917 55.350 62,161 530470 Printing and Binding 321 1.000 1,000 530480 Promotional Activities 5.000 530490 Miscellaneous Expenses 1,216 500 500 Total General $322.584 $213560 $223.541 Annual Percentage Change 53.2% -338% 4.7% TOTAL M&O EXPENSE $2.7 04 033 $2,564.548 $2.943,379 Annual Percentage Change 0.4% -5.2% 14.8% Minor Capital Outlays $24797 $9,900 $184.674 other 0 0 0 ADJ. TOTAL M&O EXPENSE p, ':.288~0 _.$3.,~..7_4,448_g 128,053 Number of Enplaned Passengers 299.607 321,559 327,347 Total O&M Cost Per Enplaf';,d Passenger $9.11 $8.01 $9.56 ~ H - Airport Records _21 .,Airpon Report-Column "Budgllf" on Fund E)I;pendjture Audit Tr-.ail dElu:-d 4-113/05 _11. Airport Report - Koy West Airport 'Budget" .Ialed 4'18105 NeW'l:on & As:!.ociate'i,lnc. Page 2a . KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY WORKSHEET ANALYSIS OF OTHER CONTRACTUAL SERVICES: FY 05 FY 06 Budget Budget Other Contractual Services Line Item $194,739 _$3J2.6SL Landsca ping Gardens of Eden 30% $S8,422 $115,024 Elevator Mowery Elevator 1% $1,947 $1,020 Parking Mgt. Republic Parking 29% $56,474 $132,213 Janitorial Ace Building Maint. 37% $72.053 $162,300 Other Buccaneer Courier 3% $5.842 $2.100 Other Contractual Services Allocation $194,739 $412,657 Average Percentage Expense Distribution Revised Percentage Expense Distribution For Other Contractual Services Terminal S 159.,7 SA _ $17,254 $1,020 $137,955 $525 Airfield S~1.042 $80.517 $0 $0 so GA . ..$5?5 Other $174,337 $0 $525 $0 $17,254 SO $0 $0 $132,213 $0 $24,345 $525 $525 _$.92_5_$.174,337 60% $15~,7.9~ ... $~1.,042 _ 10% 15% 15% Source: Other Contractual Services for FY 2006 provided by Monroe County, Airports BUSiness Office 9/2/05. ~~("-----. _~.?O!~~ .~=_ 0% _ 42% Note: Landscaping Expense allocated 70% to "Airfield", 15% to 'Terminal" and 15% to "Other". Elevator Expense allocated 100% to "Terminal". Republic Parking Fees Allocated 100% to "Other". Custodial expenses allocated 85% to 'Terminal" :md 15% to "Other" to refject services provided at FIS. WORKSHEET ANALYSIS OF TSA MANDATED SECURITY COSTS: Security Services from Above Less Operating Security Grants Net Amount Amount Allocated Directly to Airlines Net Cost Included in Rates and Charges 2004 2005 .~169.748 $1,273,4150 ($615.045) ($650,000) $554,703 $623,400 (230.697) (247.600) $324,00~. _$375,1~ Amount Allocated Directly to Airlines ._ 2}0,697 __ 247,600 Enplaned Passengers .. _ 299,6Q7 ___321,559 Per Passenger Reimbursement 0.77 0.77 Newton & Assoc;iates.lnc. Growth Factor 5% 5% 2006 51,337,070 (682,500) $654,570 (259.980) $394,589 259.980 327.347 0.79 Page 2b KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE A (Paqe 2): Monroe Co~tt...:- M&O Budqet Allocation ~ FY 06 __n_____ Allocation ---------- G;J General Other Terminal Airfield Aviation Leased Personal Services Administrative $220,792 5110,396 555.198 $22.079 $33.119 custodial 0 0 0 0 0 Mall1tenance 137.928 55.171 27.586 13.793 41,378 Security 0 0 0 0 0 I\RFF 800.709 100.089 520,461 80.071 100,089 Other 25.298 3.542 13,155 5,060 3,542 overtime 20,000 5,400 8.600 2,600 3,400 Adjustments 0 0 0 0 0 Total Personal Services 51.204,727 $274,598 $624.999 $123,603 $181.528 contractual Services profeSSional Se [VIces $5,009 $3,000 $500 $750 $750 Medical SeT\lices 2,475 1,485 246 371 371 legal Services 0 0 0 0 0 Other contractual ServiceS 412.657 156,754 81,042 525 174,337 Phone & postage/Freight 24,289 14,573 2,429 3,643 3.643 Security Services 1.337.070 1.002,802 133,707 66.853 n3.707 less operating security Grants (682.500) (511.875) (68.250) (34,125) (68250) Utility ServIces 244557 141582 25,073 6,983 70,918 RentalS & Leases 5,821 3,493 582 873 873 I,nsurance 38,200 22.920 3.820 0 11,460 Risk Management Charges 30596 21,417 0 0 9.179 Advertising 1 0 QQ.. 600 100 150 150 Total contractual Services $1.419,165 $856,752 S 179.250 $46025 $337,139 supplies & MaterialS Office Supplies 6,802 $.4081 $680 51.020 $1,020 Operating supplies 76,995 46.197 7.7 00 11.549 11,549 Gasoline 300 180 30 45 45 Diesel Fuel 500 300 50 75 75 Internal fuel 1,806 1,084 181 271 271 Books. pubs Subs. Educ. Mem 95~ 5.726 954 1,431 1,431 Total supplies & MaterialS $95,946 $57,568 59.595 $14.392 514,392 General County overhead Allocalton 126,485 $31.621 $31.621 $31 :621 $31,621 Travel & Per Diem 25,095 6,274 6.274 6.274 6,274 Vehicle Maintenance Charges 8.300 2.075 2,075 2.075 2.075 Repairs and Maintenance 62.161 15.540 15,540 15,540 15.540 p"nung and Binding 1 ,000 250 250 250 250 Promotions 0 0 0 0 0 Miseella neous Expenses 500 125 125 125 125 Total General $223.5~ $55.885 $55,885 555,885 $55885 TOTAL M&O EXPENSE 52,943,379 $1,244,802 $869,729 $239,904 $568,943 Minor capital outlayS 184,674 46.169 46,169 46,169 46.169 Subtotal 53.128,053 $1,290.970 $915.898 $286073 $635,112 Est. A.irline Reimbursement (259.98.2.2. (259,980) nla Il/a nla ADJ. TOTAL M&O EXPENSE. 52,868072 $1030,990 J9l5,898 $';S60p___ $!33?1g Allocated Share of Total Expense 100% 36% 32% 10% 22% p .ge 3 N""w1on & As:;OCI;ltes,lnc- KEY WEST AIRPORT FY 2006 RA TES & CHARGES STUDY SCHEDULE A /Paqe 3\: Monroe County . M&O Budqet Allocation Percentaqes - - - . Cost Center Allocation - - - . General Other Terminal Ai rfield Aviation Leased Total Personal Services Administrative 50% 25% 10% 15% 100% Custodial 75% 0% 0% 25% 100% Maintenance 40% 20% 10% 30% 100% Security 75% 5% 5% 15% 100% ARFF 12.5% 65% 10% 12.5% 100% Other 14% 52% 20% 14% 100% Overtime 27% 43% 13% 17% 100% Adjustment 25% 25% 25% 25% 100% Average 42~=_ 30% 10% 18% 100% Contractual Services Professional Ser'iices 60% 10% 15% 15% 100% Medical Ser'ilces 60% 10% 15% 15% 100% Legal Services 60% 10% 15% 15% 100% Other Contractual Services 38% 20% 0% 42% 100% Phone & Postage/Freight 60% 10% 15% 15% 100% Security Services 75% 10% 5% 10% 100% Less Operating Security Grant, 75% 10% 5% 10% 100% Utility Services 58% 10% 3% 29% 100% Rentals & Leases 60% 10% 15% 15% 100% Insurance 60% 10% 0% 30% 100% Risk Management Charges 70% 0% 0% 30% 100% Ad vertis;n g 60% 10% 15% 15% 100% Average .-!L~ 10% 9% 20% 100% --..-- Supplies & Materials Office Supplies 60~/O 10% 15% 15% 100% Operating Supplies 60% 10% 15% 15% 100% Gasoline 60% 10% 15% 15% 100% Diesel Fuel 60% 10% 15% 15%1 100% Internal Fuel 60% 10% 15% 15% 100% BoOks, Pubs, Subs. ;::duc, Men 60% 10% 15% 15% 100% Average 60% 10% 15% 15% 100% -- General County Overhead Allocation 25% 25% 25% 25% 100% Travel & Per Diem 25% 25% 25% 25% 100% Vehicle Maintenance Charges 25% 25% 25% 25% 100% Repairs and MainteClance 25% 25% 25% 25% 100% Printing and Binding 25% 25% 25% 25% 100% Promotions 25% 25% 25% 25% 100% Miscellaneous Expenses 25% 25% 25% 25~1c, 100% Average 29% 29% 29% 29% 100% Capital Outlay .2_5% _ _~~_ 25% 25% 100% Ne......on \:I.: ASSO~lat"'s.lni.; ?<lge 4 'KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE A (Page 4): FY 06 Payroll by Function Function Position Admin. Sr Manager - EYVV Administrator Airports Sr Office Assistant 750% S ubtota I Custodial Chief Custodian Custodian Subtotal Maint. Sr. Technician - Maintenance Sr. Technician - Maintenance Painter Subtotal Security Security Guard ARFF Firefighters - Chief Airport Rescue Shift Captain - Airport Rescue Firefighter Shift Captain - Airport Rescue Firefighter Shift Captain - Airport Rescue Firefighter Airport Rescue Fire Fighter Airport Rescue Fire Fighter Airport Rescue Fire Fighter Airport Rescue Fire Fighter Airport Rescue Fire Fighter Airport Rescue Fire Fighter Airport Rescue Fire Fighter Air Rescue (MRF) Subtotal Other Assistant County Attorney 250% Total Employees Ne\llltori & Associatesjnc. Existing $116,555 59.816 44.421 $220,792 49.331 48,581 40,016 $137.928 $0 74696 88.483 69.905 62,724 75,213 59 586 57,701 71.648 64.411 61 ,998 57.172 57.172 $800,709 $25.298 $1,184.727 New Hire Total $0 o o $116,555 59,816 44,421 C__m Cost Center Allocation _no__ General Other Terminal Airfield Aviation Leased $58.278 29,908 22,211 $29,139 14, 954 11,105 $11,656 5,982 4,442 $17,483 8,972 6,663 $0 o $0 $220.792 $110,396 __$~5-,-19~ _$21,07g $33,119 $0 $0 o $0 $0 o o $49,331 48.581 40.016 $0 o $0 $19 732 19,432 16,006 $0 $137,928 $55,171 $0 $0 o o o o o o o o o o o $74696 88,483 69.905 62,724 75,213 59,586 57.701 71.648 64,411 61 ,998 57,172 57,172 $0 $9,337 11 060 8,738 7.841 9,402 7.448 7,213 8,956 8,051 7,750 7,147 7,147 $6 325 $0 o $0 o $0 o $0 o $0 5800.709 $0 $0 $0 $0 $9,866 9.716 8,003 $4,933 4,858 4,002 $14,799 14.574 12,005 $0 $0 $27,586 $13793 $41,378 $0 $6.325 $6,325 $48.552 $7A70 57,514 8,848 45,438 6.991 40,771 6.272 48,888 7,521 38,731 5,959 37,506 5,770 46,571 7,165 41,867 6,441 40,299 6,200 37,162 5.717 _ ~,162__ _5,717 $0 $9,337 11,060 8,738 7,841 9.402 7,448 7,213 8,956 8,051 7,750 7,147 7147 $0 25.298 $100,089 $520,461 $80.071 $100,089 - - $6,325 $0 $1,184,727 $271,9_~0 $6_09,~69 $1~2,2~7 J18Qc:9W Page 5 KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE A (Page 5): Payroll Allocation Percentages __n_ Cost Center Allocation __n__ -.-.. General Other Terminal Airfield Aviation Leased Function Position Total Admin. Sr. Manager - EYW Administrator Airports Sr Office Assistant 50% 50% 50% Custodial Chief Custodian Custodian 75% 75% Maint. Sr Technician - Maintenance Sr. Technician - Maintenance Painter 40% 40% 40% 25% 25% 25% 0% 0% 20% 20% 20% 10% 10% 10% 0% 0% 10% 10% 10% 15% 15% 15% 25% 25% 30% 30% 30% 100% 100% , 1 00% 100% 100% ' 100% 100% 100% Security Security Guard 75% 5% 5% 15% 100% ARFF Firefighters - Chief Airport Rescue 13% 65% 10% 13% 100% Shift Captain - Airport Rescue Firefighter 13% 65O/!) 10% 13% 100% Shift Captain - Airport Rescue Firefighter 13% 65% 10% 13% 100% Shift Captain - Airport Rescue Firefighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Air Rescue (AARF) 13% 65% 10% 13% 100% Other Assistant Countv Attornev 25% 25% 25% 25% 100% I- 0:::>- 00 Q..:J ~I- <(U'J -J(/) <(LU Z~ O~ -ex: .....:::c ~() rt:ot1 WrJ) .....W ~1- 1-<( (/)~ Wt,O s:g )--N W>- ~LL (J) QJ (/l C":l J:: U .... ::::I a.. oI:l tII .... 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Y) Y)!I I I C) 0 0'0 Ef)- 1m o 000 fA- m! . . (/l 11) {It...... .- ~ C ill e .c ill 0 aJ ~ E L E ::l D-.. Q) D- o.. 1fi 'g, ~ > '3 -(/]WNt'IT llc tOW .- Q) ID 0 e- ~ rtl g-~~5<LLO ow...... I- 01 v:v ~I! , ...... (\l C'J m Q. o tA- I o. (A,; a tFt a, ff)" 1 II 0' EA- " Ii I! 0: (F.l- i 0'1 fA- Oi V>I o W' lD o >- LL "0 l1l lJ) c l!.l a- x w to o >- u- s:: 01 C l: C Cl w .c "'0 w N :e o E <:( QJ ..a o "'-' rn !: '(ij .c Vl Q,l 1Il rn .c u L. ::::I a.. ~ {It +-' U Q) B .... a. ro ...... o I- II) Q) (/) iii .c () L. ::l 0.. oi5 {/) ..... U Q.I '0' l- n. c ~ " ! ~ 't ~ " " <01 <>( ~ c ;, ~ ~ :;:; rn .... o I- KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE C: Calculation of Landing Fee AIRF1ELD M&O EXPENSE: Personal Services Contractual Services Supplies & Materials General Minor Capital Outlays $624,999 179)50 9,595 55,885 46,169 Total Airfield M&O Expense _$315,898 AIRF1ELD CAPITAL EXPENSE: Airfield Amortization Airfield Capital Expense $0 o T atal Airfield Capital Expense $0 TOTAL AIRFIELD REQUIREMENT: Less: Estimated General Aviation Revenue $915,898 1341291 Net Airfield Requ i rement $781,607 LANDING FEE CALCULATION: FY 06 Est. Passenger Airline Landed Weight (OOO Lb. Units) FY 06 Est. Cargo Airline Landed Weight (000 Lb. Units) FY 06 Estimated Airline Landed Weight (000 Lb. Units) 328,701 4,628 33~,329 Airl ine Landing Fee Rate (Net Airfield Requirement I Airline Landed Weight}) $2.3449 KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE D: Calculation of Terminal Rental Rates OJ, I Productive Total SUMMARY TERMINAL SPACE: Rent~ble Sq.Ft. Sq.Ft. Airline Space 55% 14,262 14,262 Concession and Other Rentable Space 25% 6,444 6,444 Public Space 11% 2,927 2,927 Administrative & Support Space 9% 0 2,250 Total Terminal Space 100% 23,633 25,883 Amount TERMINAL M&O EXPENSE: Personal Services Contractual Services Supplies & Materials General Minor Capital Outlays $274,598 856,752 57,568 55,885 46,169 Total Terminal M&O Expense Less Direct Billed Security Charge $1,290,970 (259,980) Net M&O Requirement $1,030,990 TERMINAL CAPITAL EXPENSE: Debt Service (Bonds/Notes) Amortization Depreciation $0 o o Total Terminal Capital Requirement $0 TERMINAL REQUIREMENT: $1,030,990. TERMINAL RENT CALCULATION: Terminal ReqUirement $1,030,990 Total Terminal Space (Sq, Ft.) 25,883 Average Terminal Rental Rate Per Square Foot $39.83 (Tenninal RequirementfTotal Terminal Spacei AIRLINE SPACE RENTAL Airline Space (Sq Ft.) Airline Requirement (Average Terminal Rental Rate times Airline SF) 14,262 .15fi.8,Q99 AIRLINE RATE STR.UCTURE Average Rental Rate - Passenger Terminal Building Average Rental Rate - Cape Air Building $40.77 ____ __ .$33.86 Note: In calculating the Cape A ir Building rental rate. the Equivalent Class I rental required for the Cape A ir Building was by 15% to reflect the difference in the condition between the passenger term mal building and the Cape A If Building_ Ne\N't-on & Associates.lnc. Page 9a -KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE D (PaQe 2\: Calculation of Airline Terminal Class Rentals Equivalent Equivalent Total Equivalent Terminal Relative Class I Cape Air Relative Class I Airline Class I Category of Space Space Value SiJace Bldg. Value Space Space Space Ticket Counter 2.481 100% 2.481 30B 100% 308 2.789 2.78~ Office Space 1,978 80% 1,582 357 80% 286 2,335 1,86E Second Floor Office 0 70% 0 0 70% 0 0 ( Storage 0 50% 0 0 50% 0 0 C Covered Space 2,831 50% 1,416 0 50% 0 2,831 1,41E Covered Space - Common Use 325 50% 163 0 50% 0 325 16:: Hold Room 3,226 100% 3,226 660 100% 660 3,886 3,88E Baggage Claim 1 ,496 100% 1,496 600 100% 600 2,096 2,09E Total ~,}37 10,~63 J,92~_ 1 ~~5_4 __ 1_,!,262 12,21] --.----.- Average Rental Rate per Square Foot Per Annum $2:9-.&~ $A2,.99 - --- Calculation of Class I Rate: Equivalent Class I Rental ReqUired $502,922 $65.177 ** $568,099 Equivalent Class I Space 10,363 1.854 Required Class I Rate (Per Sq. Ft.) $48.53 $35.16 Rate Structure: Average Rental Rate $40.77 . $33.86 $39.83 Ticket Counter $48.53 100% $120.400 $35.16 100% $10,830 $131,230 Office Space $38,82 80% 76.792 $2813 80% 10.042 86.834 Second Floor Office $33.97 70% 0 $24.61 70% 0 0 Storage $24.26 50% 0 $1758 50% 0 0 Covered Space $24,26 50% 68,692 $1758 50% 0 68.692 Covered Space-Common Use $2426 50% 7,886 $1758 50% 0 7.886 Hold Room $4853 100% 156.553 $35.16 1000;') 23,207 179.761 Baggage Claim $48.53 100% 72.599 $35.16 100% 21.097 93,696 $.9~2,922 $65.177 $568,099 .. In calculating the Cape Air Building rental rate, the Equivalent Class I rental required for the Cape Air Building was reduced by 15% to reflect the difference in the condition between the passenger terminal building and the Cape Air Building. Page 9b , KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY SCHEDULE D (Page 3): Calculation of Airline Terminal Rental Amounts Airline Space: Ticket Office 2nd Floor Storage Covered Hold Bag Total Space Classification Counter Space S pace Space Area Room Claim Space Rental Rates $48.53 ~38.8~____ $~}.97 $24.26 $24.26 $48.53 $48.53 ..-------..- n_._..___. ------- -- Airline Terminal Building: American Eagle 886 532 .196 1,614 Continental Connectior 667 482 868 2,017 Delta Jet Service 464 455 558 1,477 USAir Express 464 509 1,209 2,182 Air Midwest 0 Cape Air Building: Cape Air 308 357 660 600 1 :925 Subtotal 2,789 2,335 2,831 660 9,215 Non-Exclusive Space: Hold Room 3,226 3,226 Baggage Claim Area 325 1,496 1,821 -....- Total Airline Space 2.789 2,335 _ _~, 156 3,8~6. 1 ,496 14,262 Rental Amount: Continental Delta Jet USAir Air Common Cape Total Connection Service Ex ress Midwest Use Air Amount Airline Space Ticket Counter $42.996 $32,369 $22,517 $22,517 $10,830 $131,230 Office Space 20.654 18,713 17,664 19,761 10,042 86,834 Second Floor Space 0 Storage 0 Covered Space 4,756 21 ,061 13,539 29,336 68,692 Annual Rental $68,406 $72,143 $53,721 $71,614 $20,872 $286,756 Common Use Space 237.038 44,304 281,343 Total Annual Rental $68,406 $72, 14~ ~5)-,-!21 $71,614 $237,038 $65.,_177 1568,099 ---- _____n____ Est Monthly Rental ..$.5 XQ 0 $6,012 $4,477 $5,9~8 $19,753 $5,431 ._ _~4 7 , 342_ Newton & ASSOClilles,lnc. Page 9c KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY Concessions and Other Rentable Space: Car Rental Gift Shop Restaura nt Second Floor Rentable Space 964 361 2,998 2,121 Public Space Support Space: Airport Offices Other 1,898 352 . -.-1.~,883 Total Terminal Building Space Newton & Associates,ll1c 6,444 2,927 2,250 Page 9d KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY NEW FY 2006 RATES KEY WEST INTERNATIONAL AIRPORT TERMINAL RENT Airlines Publicly Exposed Space Nonpublic Office Space Second Floor Office Covered Areas & Storage Cape Air Building Publicly Exposed Space Nonpublic Office Space Covered Areas & Storage Concessions (All Space) Car Rental Gift Shop Restaurant UTILITIES - Electric, Water, Sewer, Trash Removal (Included in the rental rate) New Rates Commencin~ 10/01/05 $48.53 $38.82 $33.97 $24.26 $35.16 $28.13 n/a $48.53 $48.53 $4853 LANDING FEE Rate per Thousand Pounds of Gross Landing Weight $2.34 SECURITY CHECKPOINT - REIMBURSEMENT CHARGES Per Enplaned Passenger $0.79 Cost: $259,980 EnpL Pax: 327.347 OTHER TSA MANDATED SECURITY CHARGES Per Enplaned Passenger Cost: undetermined Enpl .Pax: 327,347_ RON CHARGES For each aircraft in excess of 3 parked overnight at the Passenger Terminal or Cape Air Building Ramp F or aircraft with more than 13 seats For aircraft with 13 or less seats FUEL FLOW FEES (per Gallon Delivered) LAND RENTAL RATES Aviation Use Property Hangar Rental Rate Non-Avi~tion Use Property County Leased Property FI$ Building Space Per Square Foot Rental Rate per Annum Newton & Associates,lnc. n/a $25,00 $12.50 $0.06 $0.73 $1.78 By Appraisal $1.31 $39.83 Page 10 KEY WEST INTERNATIONAL AIRPORT FY 2006 RATES & CHARGES STUDY WORKSHEET - OPERATING STATISTICS Passengers /1 Year 2006 2005 2004 2003 2002 2001 20De TOTAL PASSENGERS: American Executive Air 35.2% 221,538 215,086 208,821 199,366 189,910 196,810 201,8H Cape Air 5.3% 33.345 32,374 31 ,431 35,842 40,253 45,389 3g,53~ Delta Jet Service 24.6% 154,902 150,390 146.010 96,850 47,690 31,814 73,32E Continental Connection 25.7% 161,685 156,976 152,404 150,160 147,915 123,575 115,42E Air Midwest Express 9.0% 56,458 54,814 53.217 93,511 133,805 1 41 ,54B 130,10C Fla Coastal 0.2% 1,468 1,426 1.384 816 248 69 55<: Enplanements 320,144 310,819 301,766 295,285 266.413 262,761 285,37~ Deplanements 309,253 300,246 291.501 281 ,259 293,409 276.442 275,38E .--.---.- Total 100% R9,397 611,Q~.. 593,267 576,544 559,822 539.203 560,l6C ---- --- Monthly Average Enplanements 26,679 25,902 25,147 24,607 23,866 22,778 23,781 Monthly Average Deplanements 25.771 25,021 24.292 23.438 22,785 21,938 _ 22,94f Annual Growth Rate 3.0% 3.0% 2.9% 3.0% 3.8% -3.8% Compound Annual Rate of Increase 2000-2006 2.6% Fiscal Year Enplanements 327.347 321,559 299.607 291,361 251281 280,108 278,763 Compound Annual Rate of Increase 2000-2006 2.6% ESTIMATED LANDING WEIGHTS; Year 2006 2005 2004 2003 2002 2001 2000 Landing Weights 2/ 333,329 331 , 11 0 328.907 328,801 299,087 297,023 Monthly Average 27,777 27,593 27,409 27,400 24,924 24,752 ------.-- Annual Growth Rate 07% 0.7% 0.0% 9.9% 0.7% .-. - ... -.. - Compound Annual Rate of Increase 2000-2006 1.9% 1/ NAI Estimate and Airport Records 2/ KWIA Final Report Terminal Concept Study - September 2004 Newton & AssociatesJnc. 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