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Item C10M C ounty of f Monroe ELj » °o � BOARD OF COUNTY COMMISSIONERS /� r i � �� Mayor George Neugent, District 2 The Florida. Ke Se y I Mayor Pro Tern David Rice, District 4 Danny L. Kolhage, District I Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting May 17, 2017 Agenda Item Number: C.10 Agenda Item Summary #2916 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809 -5200 none AGENDA ITEM WORDING: Approval to apply to the Federal Aviation Administration (FAA) for Passenger Facility Charge (PFC) Application #17 funding for the Key West International Airport and the Florida Keys Marathon International Airport and to accept public comment on the County's application for 30 days upon the posting of the required Public Notice. ITEM BACKGROUND: The Key West International Airport (EYW) and Florida Keys Marathon International Airport (MTH) intend to file PFC Application No. 17 to impose and use PFCs to fund, in part, the following projects: 1. EYW Noise Insulation Program (NIP) 2. EYW Runway Rehab Design 3. EYW Runway Rehab Construction 4. EYW Terminal Improvement Solar /Chiller 5. EYW Restroom and Pet Relief Design 6. EYW FBO Access Road Design and Construction 7. MTH Environmental Assessment 8. MTH Master Plan Update 9. PFC Administrative Costs Upon a preliminary meeting with the FAA and an Airline consultation meeting, the County will is accept public comment as part of the passenger facility charge (PFC) application process under 14 CFR § 158.24. Additional information about this PFC application and the projects (including project description, costs, funding sources, timing and justification) will be posted on the Key West International Airport's website: http: / /eyw.com /page /airport- public- notices. Comments from the public will be accepted for 30 days as described on the website. PREVIOUS RELEVANT BOCC ACTION: None CONTRACT /AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: PFC Application No. 17 FINANCIAL IMPACT: Effective Date: 5/17/2017 Expiration Date: Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: Budgeted: No Source of Funds: N/A CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Beth Leto Completed 05/02/2017 12:30 PM Donald DeGraw Completed 05/02/2017 1:15 PM Pedro Mercado Completed 05/02/2017 2:26 PM Budget and Finance Completed 05/02/2017 2:38 PM Maria Slavik Completed 05/02/2017 2:39 PM Kathy Peters Completed 05/02/2017 4:56 PM Board of County Commissioners Pending 05/17/2017 9:00 AM APPLICATION TO IMPOSE AND USE A PASSENGER FACILITY CHARGE AT KEY WEST INTERNATIONAL AIRPORT PFC APPLICATION NO. 17- 17- C- 00 -EYW KEY WEST INTERNATIONAL. AIRPORT Monroe County/Key West International Airport 3491 South Roosevelt Blvd. Key West, FL 33040 DRAFT May 1, 2017 May _, 2017 Ms. Marisol Elliott Program Manager /Community Planner Orlando Airports District Office 5950 Hazeltine National Drive, Suite 400 Orlando, FL 32822 Reference: Application to Impose and Use a Passenger Facility Charge at Key West International Airport and Florida Keys Marathon Airport (PFC Application No. 17- 17- C- 00 -EYi) Dear Ms. Elliott: Monroe County (the County) is pleased to submit, for review and approval by the Federal Aviation Administration (FAA), an application to impose and use a passenger facility charge (PFC) at Key West International Airport (EYW) and Florida Keys Marathon Airport (MTH). This application was prepared in accordance with 14 CFR § 158, and includes the following sections: • Application Form 0 • Attachment A: Airport Capital Improvement Plan • Attachment B: Project Information • Attachment C: Air Carrier Consultation & Public Notice Information • Attachment D: Request to Exclude Class(es) of Carriers • Attachment E: Alternative Uses/Pro*ects (Not Applicable) LU • Attachment F: Competition Plan/Update (NotApplicable) • Attachment G: ALP /Airspace /Environment • Attachment H: Notice of Intent Project Information (Not Applicable) In total, PFC Application No. 17- 17- C- 00 -EYW (Application) will seek $6,689,338 of impose and use authority and consists of the following projects: EYW Noise Insulation Program (NIP) EYW Runway 9 -27 Rehab - Design EYW Runway 9 -27 Rehab - Construction EYW Terminal Improvements — Solar Implementation & Replacement of the Existing Chiller System - Design EYW Renovate & Expansion of Restrooms & Service Animal Relief Area - Design EYW Access Road - Design & Construction MTH Environmental Assessment MTH Master Plan Update PFC Administrative Costs DRAFT - May 1, 2017 Ms. Man sol Elliott May _, 2017 Page 2 of 3 In conducting your review, the following aspects of this Application should be noted: The County is seeking approval from the FAA to collect PFC revenue at the Airport at a four dollar and fifty cent ($4.50) collection level. Concurrent with this Application, the County will amend four PFC applications to reflect the final project and financing costs, which were less than anticipated when the original projects were submitted. As a result, these four PFC amendments will reduce the County's PFC collection and use authority by $4,050,254. Specifically, the following PFC applications will be amended: 05- 10- C- 00 -EYW (a reduction of $201,000), 06-11 - C-00-EYW (a reduction of $3,682,593), 07- 12- C- 00 -EYW (a reduction of $63,010), and 10- 14- C- 00 -EYW (a reduction of $103,651). These four amendments are incorporated with the information and tables presented hereinafter for the new Application. Based on our current estimates, this Application would increase the County's current authority to impose a PFC at the Airport by approximately $6.7 million (increasing total PFC collection authority to approximately $26.5 million). • Certain information is presented in Table 1 and Table 2, which are attached to this transmittal letter, including (1) the current and proposed status of PFC authority (Table 1) and (2) the sources and amounts of funds used to finance the projects (Table 2). Based on projections of enplanements and anticipated charge expiration date of PFC Application No. 16- 16- C- 00 -EYW, charge effective date is estimated to be November 1, 2018. • Collection of $6,689,338 of PFC revenues is estimated to take approximately 29 months based on current collection levels and therefore, the charge expiration date is estimated to be March 1, 2021 (or until collected PFC revenue plus interest thereon equals the allowable costs of the approved projects, as permitted by regulation). As discussed in greater detail in Attachment D: "Request to Exclude Class(es) of Carriers ", all air taxi /commercial operators (ATCO) are requested to be excluded from the collection of a PFC. The number of passengers enplaned by these carriers constituted less than one percent of the total number of passengers enplaned at EYW in CY 2015. As a result, it would be administratively burdensome for the County to ensure remittance z of the PFC from this class of carrier in compliance with federal requirements, and exempting this class will have virtually no effect on revenues. In accordance with 14 CFR § 158.23, the County notified the air carriers on [TBD] of a consultation meeting. This meeting was held on [TBD] local time in the Airport Manager's Conference Room in the Administration Building. Relevant information regarding the air carrier consultation meeting is included in Attachment C: "Air Carrier Consultation & Public Notice Information ". In accordance with 14 CFR § 158.24, the County posted a public notice of its intent to submit an application to impose and use a PFC. This public notice was posted on the Airport's website on [TBD] and provided for a 30 -day public comment period. Relevant information regarding the public notice is included in Attachment C: "Air Carrier Consultation & Public Notice Information ". DRAFT - May 1, 2017 Ms. Man sol Elliott May _, 2017 Page 3 of 3 We look forward to your favorable review and approval this Application. If you have any questions or require additional information, please contact me at (305) 809 -5210 or by e -mail at DeGraw- Donald @MonroeCounty- FL. Gov. Sincerely, Donald P. DeGraw Director of Airports Attachments CC: Tina Boan, Monroe County Christopher Bowker, Jr., Jacobs Beth Leto, Monroe County Bonnie Ossege, Ricondo & Associates, Inc. DRAFT - May 1, 2017