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Item C2 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY MEETING DATE: 8/15/07 DIVISION: COUNTY ADMINISTRATOR BULK ITEM: YES DEPARTMENT: AIRPORTS STAFF CONTACT PERSON: Peter Horton Phone: 292-3518 AGENDA ITEM WORDING: Approval of revised budget for Republic Parking, for the period of November 1, 2006 - October 31, 2007, for parking lot management at the Key West International Airport. ITEM BACKGROLlND: Republic has requested an increase in the budget for travel, due to manager and staff recruitment, hiring, and training. In order to support staff retention, they have also added a benefit package for the manager only, and an increase if hourly rate for cashiers. Projected revenue for the Parking Lot is $219,325,00. PREVIOUS RELEVANT BOCC ACTION: Approval of Republic Operating budget, 11/15/06, and revised operating budget (due to increase in State minimum wage), 1/17/07. CONTRACT/AGREEMENT CHANGES: Increase in the operating budget, in the amount of $14,455.00. STAFF RECOMMENDATION: Approval TOTAL COST: $14,455.00 additional COST TO AIRPORT: $14,455.00 COST TO PFC: none COST TO COUNTY: none BUDGETED: Yes SOURCE OF FUNDS: Airport Operating Budget REVENUE PRODUCING: Yes AMOUNT PER YEAR: $219,325.00, projected APPROVED BY: County Attorney n/a OMB/Purchasing n/a Risk Management nla DOCUMENTATION: Included X Not Required AGENDA ITEM # DISPOSITION: /bev AO 11/06 OPERATING BUDGET (Revised 7/23/2007) KEY WEST INTERNATIONAL AIRPORT November 1, 2006 - October 31,2007 Current Proposed Budget Budget Proiected Revenue $219,325.00 $219,325.00 Operator's Fee Management Fee @ $1,250.00 per month $15,000.00 $15,000.00 Data Processing Fee @ $400.00 per month $4,800.00 $4,800.00 Incentive Fee @ 2.5% of projected gross $5,483.00 $5,483.00 SUB-TOTAL $25,283.00 $25,283.00 OPERATING EXPENSES Payroll Expenses: Salary and Wages $81,320.00 $81,320.00 Payroll Tax @ 8.5% $7,414.00 $7,414.00 Worker's Compo @ 7.12% $6,011.00 $6,011.00 Overtime and Training $2,389.00 $2,389.00 Recruiting Expense $500.00 $500.00 Health Insurance (Mgr. only) $2,975.00 SUB- TOTAL $97,634.00 $104,089.00 General Expenses: Telephone $1,350.00 $1,350.00 Postage $600.00 $600.00 Equipment Repairs $2,800.00 $2,800.00 Uniforms $900.00 $900.00 Travel $1,500.00 $10,000.00 Tickets/Supplies - General $4,100.00 $4,100.00 Insurance-Liability $2,711.00 $2,711.00 Cell Phone $175.00 $175.00 Off-Site Storage $925.00 $925.00 Non-Budgeted Expenses $1,750.00 $1,750.00 SUB-TOTAL $16,811.00 $24,811.00 TOTAL OPERATING BUDGET $139,728.00 $154,183.00 REPU8~ PARKING SYSUM EXECUTIVE OFFICES. SUITE 2000 . REPUBLIC CENTRE. CHATTANOOGA, TENNESSEE 37450. 423n56-2771 . FAX 423/265-5728 July 24, 2007 Ms. Bevette Moore Business Administrator Airports Business Office Key West International Airport 3491 S. Roosevelt Boulevard Key West, FL 33040 Dear Bevette: As we discussed this morning, I have prepared a revised budget for fiscal year 2007 to address the increase in payroll and travel costs that we have experienced associated with the recruiting, hiring and training of a replacement facility manager and staff. In response to the unexpected resignation of our faCility manager, our Regional Manager, Linda Kelleher has spent several weeks managing the daily operation of the parking facility and recruiting and training new managers and cashiers, As you are aware, the cost of travel and accommodations in Key West is quite high. Our budget anticipated routine travel expenses normally incurred with periodic site visits. To date, we have incurred over $8,400 in travel expense related to the recruiting and training of managers and staff. The travel expense budget has been increased to $10,000 to fund travel expenses already incurred and anticipated costs through the end of the fiscal year for additional and recurring training. The high level of competition in the labor market in Key West has resulted in two of the newly hired managers and several cashiers tendering their resignation for higher paying opportunities with other Key West employers. In an effort to retain the newly hired manager and cashier staff, I have added $2,975.00 for a benefit package (for the manager only) and will increase the hourly rate paid to cashiers to allow us to be competitive in the Key West labor market. The increase in the cashier's hourly rate can be funded without change to the Salary & Wages line item in the current budget. Please contact me if you have any questions regarding the revised budget or the operation of the parking facility. We are committed to the efficient operation of the parking facility and will continue to minimize expenses in our effort to provide the Ms. Bevette Moore July 24, 2007 Page 2 County and the citizens of Key West with professional and courteous parking facility management. Best Regards, /r;;}~l , ,./ . ./ ,r ./ / /~-:, / - ~ ?. ('y-c----- '-';;/' , Alan Doherty "-"_ Vice President " c: Peter Horton, Director of Airports James C. Berry, Chairman & CEO Republic Parking System Enclosure