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Item B32M 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 October 18, 2017 Agenda Item Number: B.32 Agenda Item Summary #3449 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809 -5200 none AGENDA ITEM WORDING: Approval of the FY2018 Airline Rates and Charges for the Key West International Airport, effective October 1, 2017. The rates are adjusted as follows: Average Terminal Rental Rate $59.23 per square feet ($1.69 increase), Landing Fee Rate $3.53 ($0.40 decrease) and Checkpoint Security Charge $0.80 ($0.09 decrease). The average Airline Cost per Enplaned Passenger will be $9.58 ($0.88 decrease). ITEM BACKGROUND: As part of our annual budget process, Newton & Associates, Inc. has updated the Airport's Rates and Charges. On August 30, 2017, a telephone conference was conducted with the Airlines to discuss the 2018 Rates and charges; Airlines present on the call were Delta and American; Silver and United were invited but unable to attend. The airlines have reviewed and accepted the FY2018 Rates and Charges. A mid -year review and final year -end reconciliation will be conducted to ensure that the Airport recovers the actual costs of providing services and facilities to the air carriers. Airline underpayments will be billed to the air carriers and overpayments will be refunded to the air carriers by the Airport. PREVIOUS RELEVANT BOCC ACTION: Approval of annual Airline Rates and Charges each year if changes were made. CONTRACT /AGREEMENT CHANGES: New Rates and Charges STAFF RECOMMENDATION: Approval. DOCUMENTATION: EYW FYI Airline Rates & Charges 9 -25 -17 FINANCIAL IMPACT: Effective Date: 10/01/2017 Expiration Date: 9/30/2018 Total Dollar Value of Contract: Total Cost to County: n/a Current Year Portion: Budgeted: yes Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: yes If yes, amount: approximately $4.3 Million Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Beth Leto Completed 10/02/2017 11:17 AM Pedro Mercado Completed 10/02/2017 11:21 AM Donald DeGraw Completed 10/03/2017 7:05 AM Budget and Finance Completed 10/03/2017 8:05 AM Maria Slavik Completed 10/03/2017 8:37 AM Kathy Peters Completed 10/03/2017 6:26 PM Board of County Commissioners Pending 10/18/2017 9:00 AM ±; ��JJ ��J yA tl [� �ntlf i s i 4Vi.!.T rot; it :DUST RY CC II S UL I AT] I 'r September 25, 2017 VIA ELECTRONIC MAIL To: EYW Air Carrier Representatives (Distribution Attached) Re: FY 2018 Airline Rates and Charges Key West international Airport Dear Air Carrier Representative: Please find attached for your record the final FY 2018 budget airline rates and charges ( "Rates and Charges ") for the Key West International Airport ( "Airport "). The Rates and Charges are calculated based on t1Te Airport's estimated expenses for t1Te subject year, using the same methodology that has been in place since 2002. As shown ill the attached Rates and Charges package, the total Airport FY 2018 Budget Operating and Mailitellalice alTd Capital Expensc represents a increase of approximately $314,090 compared to the FY 2017 estimated total. This increase is reflective of both necessary increases as well as certain decreases which are expected in FY 2018. FY 2018 Airline Rates and Charges Summary: The following summarizes t1Te estimated Average Airline Terminal Rental Rate, Landing Fee Rate, Checkpoint Security Charge, and average airline CPEP for FY 2018 compared to those estimated for FY 2017: Average Terminal Rental Rate Landing Fee Rate Checkpoint Security Charge Airline Cost per Enplaned Passenger Estimated Budget FY 2017 FY 2018 Var. $ 57.54 $ 59.23 $1.69 $ 3.93 $ 3.53 ($0.40) $ 0.89 $ 0.80 ($0.09) $ 10.46 $ 9.58 ($0.88) Page 1 of the Rates and Charges package provides a summary of key results of the FY 2018 budget Rates and Charges. Airport Operating and Maintenance ( "O &M ") Expenses: Page 2 of the Rates and Charges package provides detail on the Airport 0 &M Expense budget for FY 2018. As shown, total Airport 0 9 Expenses have been budgeted to increase by 4.0 %, or $299,877 from $7,493,102 estimated for FY 2017 to the $7,792,979 in Budget FY 2018. 1806 ROCKY RIVER ROAD O CHAELOrtE, NC 28213 o (704) 597 -4384 U FAX 17041 5974385 PaCket',Pg.1)9'2 NAICLT<'NEWTONANDASSOCIATES.COM u WWW.NEWTONANDASSOCIATES.COM EYW Air Carrier Representatives September 25, 2017 Page 2 Contractual Set - Security Expense: Page 4 of the package depicts the Airport's security expense requirements estimated for FY 2018. As shown, the Airport security expenses are budgeted to be $2,487,670, approximately $73,913 more than the amount estimated for- FY 2017. The Airport is anticipating that the County will receive grant funds in the amount of $58,395 to offset this security expense, reducing its budgeted amount to $2,429,275 for the year. Lauding Fee Rate: Page 9 of the package presents the calculation of the airfield landing fee rate. The Total O &M and Capital Expenses allocated to the Airfield cost center are estimated to be $2,175,014 ( "Airfield Requirement "). The Airfield RequirellIent is then reduced by estimated FY 2018 general aviation revenues ($230,088) resulting in a Net Airfield Requirement of $1,944,926, an increase of $128,405 over the amount estimated for FY 2017 As for the estimated landed weights for the year, Newton & Associates, Inc. ("NA I") requested estimated total airline landed weights from each carrier for FY 2018. Based on the information provided, total airline landed weight (including cargo landed weight) for FY 2018 is estimated to be 550,830, an increase of 89,157 units over the estimated FY 2017 level. Based on the Net Airfield Requirement and the total estimated units of aircraft landed weight, the resulting Landing Fee Rate is $3.53, a decrease of $0.40 compared to the estimated FY 2017 amount of $3.93. This decrease in the landing fee rate is attributed to an increase in the Net Airfield Requitement offset by an increase in total estimated airline landed weight for FY 2018. Airline Terminal Rental Rate: Page 10 presents the calculation of Terminal Rental Rates for FY 2018. Total projeeted FY 2018 O &M and Capital Expenses allocated to the Terminal cost center is $3,569,872 ( "Terminal Requirement "), which is $101,833 higher than the Estimated FY 2017 aMOUilt of $3,468,040. Note that (lie Terminal Requirement excludes directly billed airline checkpoint security reimbursement charges of $353,832 (Page 5) estimated for FY 2018. Based on the estimated Terminal Requirement and the total productive square footage of the terminal complex (60,27 1), the FY 2018 Average Terminal Rental Rate is $59.23 per square foot, which is a $1.69 increase over the Estimated FY 2017 average terminal rental rate of $57.54 per square foot. Airline Cost Per Enplaned Passenger: As with the estimated landed weights, NAI also requested the estimated annual enplatfements from each carrier for FY 2018. As shown on Page 13, based on the information provided by the carriers, the enplanements for FY 2018 have been estimated to be 444,307, nn increase of 56,568 when compared to the Estimated 1�Y 2017 enplanements of 387,739. Based on this estimate ofenplancments and the total amount of I -Y 2018 airline payments of $4,256,269 EYW Air Carrier Representatives September 25, 2017 Page 3 (Page 1) the estimated CPFP for Budget FY 2018 is $9.58, which $0.88 lower than the Estimated FY 2017 level ($10.46). Review Process and Moving Forward: On August 30, 2017 NAI presented (via teleconference) the FY 2018 Budget Rates and Charges information to the passenger air carriers serving the Airport. No request for modifications were made by the airline representatives. Accordingly, the FY 2018 airline Rates and Charges as described herein will become effective October 1, 2017. As with past practice, the FY 2018 budget will be monitored over the coming montlis and any significant variances will be identified as part of mid -year budget performance review. If significant variances to the FY 2018 budget expenses or airline enplanement and aircraft landed weight activity levels are realized, then appropriate rate adjustments will be made and placed into effect for the balance of FY 2018. Furthermore, upon conclusion of the FY 2018 budget year and completion of the FY 2018 audited financial statements, the Airport will conduct its FY 2018 Rates and Charges Reconciliation which will identify the amounts of any airline under payments or overpayments and effect the appropriate settlement for the Airport to recover its actual costs of providing services and facilities to the air carriers serving the Airport. If you have any questions please do not hesitate to contact me. Sincerely, Frank Newton Vice President Attachment Cc: Don DeGraw, Director of Airports Beth Leto, Airport Business Manager KEW WEST INTERNATIONAL AIRPORT AIR CARRIER DISTRIBUTION LIST FOR FY 2018 AIRLINE RATES AND CHARGES Mr. Scott Meader Regional Manager — Airport Affairs DELTA AIRLINES, INC. Department 877 P. O. Box 20706 Atlanta, GA 30320 -6001 Cott. n�e�I�lc rrr'r�d�jr:t.collt Mr. James Seadler AjIIERICANAIRLINES Corporate Real Estate 4333 Amon Carter Blvd., MD 5317 Fort Worth, TX 76155 I'lnI "ILIIe1'I4L COM Mr. Ian Craft Vice President Airports and Customer Service SIL VER AIR JVA YS, CORP. 1100 Lee Wagener Blvd. Suite 200 Fort Lauderdale, FL 33315 I�] fl. t' i" �lit� (('S111'CI'ali'Si'il�'S.0O21] Gregory Kozak Regional Manager— Airport Affairs UNITED AIRLINES 233 S. Wacker Drive, I 1 th Floor - WHQOU Chicago, IL 60606 ;!l'l'�'U1'1 ,1�OZ�lti�(L!1I111tLi�.CO[ll KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES SUMMARY Page 1 NevAon & Associates, Inc. 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 cta CJ cta co LL Mid -Year Budget Budget Over Variance FY 2017 FY 2018 Mid -Year Percent Total Airport Operating & Maintenance Expense $7,493,102 $7,792,979 $299,877 Total Airport Capital Expense 29,956 44,169 14,213 Total Airport Operating, Maintenance & Capital Expense $7,523,058 $7,837,148 $314,090 4.2% Terminal Building: Terminal Requirement $3,468,040 $3,569,872 $101,833 2.9% Terminal Productive Square Footage 60,271 60,271 0 0.0% Terminal Rental Rate Per Square Foot $57.54 $59.23 $1.69 2.9% Airline Square Footage - Occupied 33,287 33,417 130 Airline Terminal Rentals $1,915,360 $1,979,300 $63,941 3.3% Airfield: Net Airfield Requirement $1,816,521 $1,944,926 $128,405 7.1% Total Aircraft Landed Weight 461,673 550,830 89,157 19.3% Airfield Landing Fee Rate Per 1,000 Pounds $3.93 $3.53 ($0.40) -10.3% Passenger Aircraft Landed Weight 456,964 544,659 87,695 Passenger Airline Landing Fees $1,797,993 $1,923,137 $125,144 7.0% Security Reimbursement Direct Bill Charges $343,526 $353,832 $10,306 3.0% per Enplaned Passenger $0.89 $0.80 ($0.09) Total Estimated Airline Payments $4,056,879 $4,256,269 $199,391 4.9% Enplaned Passengers 387,739 444,307 56,568 14.6% Total Cost Per Airline Enplaned Passenger $10.46 $9.58 ($0.88) -8.4% NevAon & Associates, Inc. 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 cta CJ cta co LL KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES Airport Operating & Maintenance Ex e ARFF Non - Personal Services O &M Expense $195,698 $245,007 $49,309 25.2% Security Services Non - Personal Servcies- M &O Expense 115,700 100,200 (15,500) -13.4% TOTAL BASIC O &M EXPENSE $5,137,740 $5,363,704 $225,964 4.4% Contractual Services - Security Security Services - MCSO $2,413,757 Mid -Year Budget Increase/ Percent (58,395) (58,395) FY 2017 FY 2018 (Decrease) Change $2,429,275 Personal Services 3.1% TOTAL O &M AND SECURITY EXP. $7,493,102 $7,792,979 510120 Administrative $520,928 $574,716 $53,788 10.3% Maintenance 617,061 662,089 45,028 7.3% Planning & Engineering 0 0 0 NA ARFF 1,239,785 1,310,268 70,483 5.7% Airport Security 184,467 223,026 38,559 20.9% Legal 0 0 0 NA Total Personal Services $2,562,240 $2,770,099 $207,859 8.1% Contractual Services (Non- Security) 530310 Professional Services $25,600 $21,500 ($4,100) -16.0% 530340 Other Contractual Services 675,839 689,000 13,161 1.9% 530410 Phone & Postage /Freight 32,000 32,000 0 0.0% 530440 Utility Services 420,000 420,000 0 0.0% 530440 Rentals & Leases 8,000 8,000 0 0.0% 530450 Insurance 22,150 21,000 (1,150) -5.2% 530451 Risk Management Charges 67,011 66,396 (615) -0.9% 530498 Advertising 2,100 1,000 (1,100) -52.4% Total Contractual Services $1,252,700 $1,258,896 $6,196 0.5% Supplies & Materials 530480 Promotional $17,000 $5,000 ($12,000) -70.6% 530510 Office Supplies 1,000 1,000 0 0.0% 530520 Operating Supplies 154,250 154,500 250 0.2% 530528 Internal Fuel 7,500 7,500 0 0.0% 530540 Books, Pubs, Subs, Educ, Mem 22,000 22,500 500 2.3% Total Supplies & Materials $201,750 $190,500 ($11,250) -5.6% General 590910 County Overhead Allocation $331,280 $331,280 $0 0.0% 530400 Travel & Per Diem 18,500 18,500 0 0.0% 530409 Vehicle Maintenance 21,522 21,522 0 0.0% 530460 Repairs and Maintenance 425,000 425,000 0 0.0% 530461 Repairs and Maintenance - Building 9,025 0 (9,025) - 100.0% 530470 Printing and Binding 2,500 2,500 0 0.0% 530490 Miscellaneous Expenses 1,825 200 (1,625) -89.0% Total General $809,652 $799,002 ($10,650) -1.3% ARFF Non - Personal Services O &M Expense $195,698 $245,007 $49,309 25.2% Security Services Non - Personal Servcies- M &O Expense 115,700 100,200 (15,500) -13.4% TOTAL BASIC O &M EXPENSE $5,137,740 $5,363,704 $225,964 4.4% Contractual Services - Security Security Services - MCSO $2,413,757 $2,487,670 $73,913 3.1% Less FDOT/TSA Security Grants (58,395) (58,395) 0 0.0% Net Contractual Services - Security $2,355,362 $2,429,275 $73,913 3.1% TOTAL O &M AND SECURITY EXP. $7,493,102 $7,792,979 $299,877 4.0% Newton &Associates, Inc. 8/30/17 1� EYW FY 2018 Rates Charges vs4 08302017 (sa6aey:D pue sa ;eb UA=1 6 AAA3) Lb sa sa ;eb auiPiV M=l AAA3 : ;UGwt43e ; ;V M O O O O O O O o r r O O O O O O O O O O O O 0 O D a O 0 0 N ( 0 000 a0 m � 0o 0 , I- CD O o O O o O � L N O O N N c C 2) 0 LO O (O co Q O N V3 O N co U EA EA O L v, CD CD O O O O CD Q of O O 0 N } m O O O O O O O o W O O O CD O H a� o L i c- 0 C) O O O O O O O O O O O (2) O L 0) a _ 00 O O 00 00 Lo 0 U n/ C N LO — N (O N 00 LL Q 00 E co Efl co co 0) O Q T y N6c� o U J U ~ °� �; o Z cu O W U) H H o 0 0 0 0 0 0 Q ++ co O O O O O O U) i c Z C 0 00 O O N O (O 0 0 O 0 00 m O W 0 >. � a O o LO W Z 00 '� L \° - a _ Q LO Z J O O O O O O O ti o ° o ° o ° o ° o ° o -CU U) d Q LO C� 0 O 0 N o (0 ui m LO Il- O o c L E . L f W / W 'a >. (0 CO (0 U Q o ; E N W 0 0 O O N 0 O - o 0 o 0 U 2 c) 0 0 W � � o X00 co F (2) cu W cu .5 0 L U 0 O c U 0 co cu 0- 0 W V — j C C (0 Q U) a) w c U U Q w u x W J V! w Q 0 o Q (n c W 0) 0-- Q U) J N V O Y c Y 0) 0) O ca c x 0 x 'Q W g a / � L o �.L C cu r L H N fly O O O O Q (0 0) N C +` — O -a j Y 0 c (B > 0 O C 0 N CU C cu (� U L U Z fC L (B +` O 0) 0 O U 0 c a O Q (� cB U L o 2 O U N cn 06 = N a > Y L �_ � O O -1 w 0- 0 0 w (n z z (sa6aey:D pue sa ;eb UA=1 6 AAA3) Lb sa sa ;eb auiPiV M=l AAA3 : ;UGwt43e ; ;V LO LO N O N O 0 c r r > C N ++ 00 Il- N co M o0 00 M O D fC� a C O 0 cli C 10 N ci - --t � LO M O 00 O O m N Ul Ul 0 0 U 0- C4 � co N LO rn LL U) a M m t Co 06 U L J 0 LO 66 � N of m C O 00 � E � (o O N 00 LL W cli L N O O O M 0 M N ^ C O M fC M LO LO � O 00 v! L LO Q N L M M r,- 00 Efl I.L W O O U d CM 'a M M M co O LL ~ 619, N Q Z LL LO M O a 0 J U Co �O LO 06 Z O W n H H E rl- Q M Z N � W W Z J ;a W co N N a� W Y LL a V c U) O 0 0 U c c +' E d L c U) d U L L N L 0 ?m C a) a) Q Q U a1 U) E cr a) W 0 E O U L U) - a) L O T CL LL � rr V) V N D (n 0 U o vi L L y •� Q L fn Q m 3 3 + (0 ++ U� C U) a O N N co N E C Q 0 N U) U Y Q c cu a) ob Q Q _ (B (B L _ O O a) (B Q i — a"1 > O L L Q00 a a w am z z KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES & Maintenance Expense Allocations Contractual Services (Non- Security) Professional Services Other Contractual Services Phone & Postage /Freight Utility Services Rentals & Leases Insurance Risk Management Charges Advertising Total Contractual Services Supplies & Materials Promotional Office Supplies Operating Supplies Internal Fuel Books, Pubs, Subs, Educ, Mem Total Supplies & Materials $21,500 Budget I I General 689,000 382,800 FY 2018 Terminal Airfield Aviation Other Personal Services 4,800 4,800 420,000 330,704 36,124 Administrative $574,716 $287,358 $143,679 $57,472 $86,207 Maintenance 662,089 $264,836 $132,418 $66,209 $198,627 Planning & Engineering 0 0 0 0 0 ARFF 1,310,268 $131,027 $1,048,214 $65,513 $65,513 Airport Security 223,026 $89,210 $66,908 $44,605 $22,303 Legal 0 0 0 0 0 Total Personal Services $2,770,099 $772,431 $1,391,219 $233,799 $372,650 Contractual Services (Non- Security) Professional Services Other Contractual Services Phone & Postage /Freight Utility Services Rentals & Leases Insurance Risk Management Charges Advertising Total Contractual Services Supplies & Materials Promotional Office Supplies Operating Supplies Internal Fuel Books, Pubs, Subs, Educ, Mem Total Supplies & Materials $21,500 $12,900 $2,150 $3,225 $3,225 689,000 382,800 70,000 0 236,200 32,000 19,200 3,200 4,800 4,800 420,000 330,704 36,124 0 53,172 8,000 4,800 800 1,200 1,200 21,000 12,600 2,100 0 6,300 66,396 46,477 0 0 19,919 1,000 600 100 150 150 $1,258,896 $810,082 $114,474 $9,375 $324,966 $5,000 $3,000 $500 $750 $750 1,000 600 100 150 150 154,500 92,700 15,450 23,175 23,175 7,500 4,500 750 1,125 1,125 22,500 13,500 2,250 3,375 3,375 $190,500 $114,300 $19,050 $28,575 $28,575 General $1,865,753 $248,767 $124,384 $248,767 (58,395) County Overhead Allocation $331,280 $165,640 $82,820 $33,128 $49,692 Travel & Per Diem 18,500 4,625 4,625 4,625 $4,625 Vehicle Maintenance Charges 21,522 5,381 5,381 5,381 5,381 Repairs and Maintenance 425,000 106,250 106,250 106,250 106,250 Repairs and Maintenance - Buildings 0 0 0 0 0 Printing and Binding 2,500 625 625 625 625 Miscellaneous Expenses 200 50 50 50 50 Total General 799,002 $282,571 $199,751 $150,059 $166,623 ARFF Non - Personal Services O &M Expense $245,007 $24,501 $196,006 $12,250 $12,250 Security Services Non - Personal Servcies- M &O Expense 100,200 75,150 10,020 5,010 10,020 SUBTOTAL BASIC O &M $5,363,704 $2,079,034 $1,930,519 $439,068 $915,084 Contractual Services - Security Security Services - MCSO Less Operating Security Grants Checkpoint Security Direct Bill Net Contractual Services - Security TOTAL O &M AND SECURITY EXPENSE Allocated Share of Total Expense Newton &Associates, Inc. $2,487,670 $1,865,753 $248,767 $124,384 $248,767 (58,395) (43,796) (5,840) (2,920) (5,840) (353,832) (353,832) 0 0 0 $2,075,443 $1,468,124 $242,928 $121,464 $242,928 $7,439,147 $3,547,158 $2,173,446 $560,532 $1,158,011 100% 48% 29% 8% 16% 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 cta CJ cta LL I KEY WEST AIRPORT FY 2018 AIRLINE RATES & CHARGES Operating & Maintenance Expense Allocation Personal Services Administrative Maintenance Engineering ARFF Airport Security Legal Weighted Average Contractual Services Professional Services Other Contractual Services Phone & Postage /Freight Utility Services Rentals & Leases Insurance Risk Management Charges Advertising Weighted Average Supplies & Materials Promotional Office Supplies Operating Supplies Internal Fuel Books, Pubs, Subs, Educ, Mem Weighted Average General County Overhead Allocation Travel & Per Diem Vehicle Maintenance Charges Repairs and Maintenance Repairs and Maintenance - Buildings Printing and Binding Miscellaneous Expenses Weighted Average ARFF Non - Personal Services O &M Expense Security Services Non - Personal Servcies- M &O Expense Basic O &M Weighted Average Contractual Services - Security Security Services - MCSO Less Operating Security Grants Checkpoint Security Direct Bill Total Contractual Services TOTAL O &M AND SECURITY EXPENSE Newton & Associates, Inc. 60% 10% 15% 15% 100% 56% 10% General 34% 100% Terminal Airfield I Aviation I Other Total 50% 25% 10% 15% 100% 40% 20% 10% 30% 100% 40% 30% 15% 15% 100% 10% 80% 5% 5% 100% 40% 30% 20% 10% 100% N/A N/A N/A N/A N/A 28% 50% 8% 13% 100% 60% 10% 15% 15% 100% 56% 10% 0% 34% 100% 60% 10% 15% 15% 100% 79% 9% 0% 13% 100% 60% 10% 15% 15% 100% 60% 10% 0% 30% 100% 70% 0% 0% 30% 100% 60% 10% 15% 15% 100% 64% 9% 1% 26% 100% 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 50% 25% 10% 15% 100% 25% 25% 25% 25% 100% 25% 25% 25% 25% 100% 25% 25% 25% 25% 100% 100% 0% 0% 0% 100% 25% 25% 25% 25% 100% 25% 25% 25% 25% 100% 35% 25% 19% 21% 100% 10% 80% 5% 5% 100% 75% 10% 5% 10% 100% 39% 36% 8% 17% 100% 75% 10% 5% 10% 100% 75% 10% 5% 10% 100% 100% 0% 0% 0% 100% 71% 12% 6% 12% 100% 48% 29% 8% 16% 100% cta CJ cta LL 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 (sa6aey:D pue sa ;eb UA=1 6 AAA3) Lb sa sa ;eb auiPiV M=l AAA3 : ;UGwt43e ; ;V LL p a J I � � A = 000c+�c+� e» m co o00 orno CO rnrn ' = p o f» e» co co d y j ova U C N tE N N M M O U 0 0 N N C •� � � � �fA fA d F p` v O ° O r N C I� C 0 fA fA a L A V o 0 0 0 0 0 c Y LL E a L A V o 0 0 0 0 0 c t! _ o a U) p W° o n o d a N ��o�o ° °� oo° o0 0 Q 2 m ° ° 00 U o J F Q oa p W a x Z X ° w W a°rn °ono ° °°� W z m o m ° ° 0 0 v A o L CO 0 r r O) M M O O LU � d �J 0 LL J LL N J � 0 0 0 O 0 c A N O O O O o F 5 v 0 0 0 0 0 0 - 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O L > > as t IL IL QQO2 t u) =[ na o6 06 - a IL IL A a o a o TS w N /1 LL LL a S. o a 0 0 o 0 9 L U ° U w E Q F F o F (sa6aey:D pue sa ;eb UA=1 6 AAA3) Lb sa sa ;eb auiPiV M=l AAA3 : ;UGwt43e ; ;V CO O O O N O O 0000 N O N 'O O O 613 W (O r- � 0 0 f6 t N OOER lf') c, 0 d 0 w eR eR C m 0 0 C O O 69 B O O 0 0 00 O 00 r- O 2 O M M LO � (O N O a� N .0 N > V) V) 69 69 U O (� Q a Q V (O O O) O LO LO O m N 'a � � U V I V lL V 00 U 69 � } 69 69 LL Q 69 O � U LO LO O 00 O O N O LO W O O) N N U7 Oc O) V 0 f� f� M N M V LO X3 O) U7 3 3 3 N N F O O O) V LO W 00 LO O O V V N V N lf') (O O (3) o M M O I� O) 00 V V M j p 1- LO CO V CO In N V E to 6 63 � � Q w V O N 0 0 0 0 0 0 0 0 O N N N N N N N N N Lr) d LL O Q Q Q = (O lf) (O I� 00 00 00 00 J U t �� 0 00000000 E O w F- F L LO m o m m 0 0 0 O z r w 'O N_ M M W 00 U7 O O O O U7 W 00 V N O M M LU Z N In O V (O 00 O) 0� 0 0 O O M N M 0) 00 Z J F E Q 69 69 69 ER F U (n wco '� O N 00000000 N N N N N N N N } N w } m m m E .T E .2 w a a�a�aa� 0 0 ao ( lf') o N LL N N E O O O E A i = 7 Q m M (n E i c D U N c o aJo�� a m m m m C: t U E T Qw Cl) m v E J O N A N Q 7 � N 7 tOA U N> 0 n E CL d a ° >��oQ °o a 0 c u O ) i N t; E ° 2 v 10 Q a a a) m o a U a O 0 U U F U Q F F z Page 9 KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES Landina Fee Calculation AIRFIELD O &M EXPENSE: Budget FY 18 Mid -Year Budget Over Mid -Year FY 2017 FY 2018 FY 2017 Personal Services $1,300,812 $1,391,219 $90,407 Contractual Services 115,109 114,474 (635) Supplies & Materials 20,175 19,050 (1,125) General 200,157 199,751 (406) ARFF Non - Personal Services O &M Expense 156,558 196,006 39,447 Security Services Non - Personal Servcies- M &O Expen: 0 10,020 10,020 Subtotal Airfield - Basic O &M Component $1,792,811 $1,920,499 $137,708 Net Contractural Services - Security (Page 5) Total Airfield O &M Expense AIRFIELD CAPITAL EXPENSE: Airfield Amortization (Page 8) Airfield Capital Expense (Page 7) Total Airfield Capital Expense $247,106 $242,928 ($4,1 $2,039,917 $2,163,426 $123,509 $8,547 $11,587 $3,040 0 0 0 $8,547 $11,587 $3,040 TOTAL AIRFIELD REQUIREMENT: Less: Estimated General Aviation Revenue NET AIRFIELD REQUIREMENT $2,048,464 $2,175,014 $126,549 (231,943) (230,088) 1,855 $1,816,521 $1,944,926 $128,405 LANDING FEE CALCULATION: Est Passenger Airline Landed Weight (000 Lb. Units) 456,964 544,659 87,695 Est Cargo Airline Landed Weight (000 Lb. Units) 4,709 6,171 1,462 Est Total Airline Landed Weight (000 Lb. Units) 461,673 550,830 89,157 Airline Landing Fee Rate* *(Net Airfield Requirement / Airline Landed Weight) $3.93 $3.53 ($0.40) Newton & Associates, Inc. 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES Terminal Rental Rate Calculation Page 10 Budget FY 18 Mid -Year Budget over Est Mid - FY 2017 FY 2018 Year FY 2017 TERMINAL O &M EXPENSE: $1,468,124 ($41,646) 60,271 Personal Services $705,053 $772,431 $67,377 Contractual Services -Non Security 807,385 810,082 2,696 Supplies & Materials 121,050 114,300 (6,750) General 292,002 282,571 (9,431) ARFF Non - Personal Services O &M Expense 19,570 24,501 4,931 Security Services Non - Personal Servcies- M &O Expense 0 75,150 75,150 Subtotal Terminal Basic O &M Expense $1,945,060 $2,079,034 $133,973 Less: 10% Departure Lounge Restroom Credit (2,808) (2,890) (82) Net Terminal Basic O &M Expense $1,942,252 $2,076,143 $133,891 Net Contractual Services - Security (Page 5) $1,509,770 $1,468,124 ($41,646) Net Terminal O &M Requirement $3,452,023 $3,544,268 $92,245 TERMINAL CAPITAL EXPENSE: Debt Service (Bonds /Notes) $0 $0 $0 Terminal Amortization (Page 8) 16,017 25,605 9,588 Terminal Capital Expense (Page 7) 0 0 0 Total Terminal Capital Requirement $16,017 $25,605 $9,588 TERMINAL REQUIREMENT: $3,468,040 $3,569,872 $101,833 TERMINAL RENT CALCULATION: Terminal Basic O &M and Capital Requirement $1,958,269 $2,101,748 $143,479 Total Terminal Productive Space (Sq. Ft.) 60,271 60,271 0 Terminal Rental Rate - Basic O &M Component $32.49 $34.87 $2.38 Security Component - Terminal Requirement Total Terminal Productive Space (Sq. Ft.) Terminal Rental Rate - Security Component Average Terminal Rental Rate PSF (Terminal Requirement/Total Terminal Productive Space) AIRLINE SPACE RENTAL $1,509,770 $1,468,124 ($41,646) 60,271 60,271 0 $25.05 $24.36 ($0.69) $57.54 $59.23 $1.69 Airline Space Occupied (Sq. Ft.) Airline Space Vacant (Sq. Ft.) Airline Space Total (Sq. Ft.) Airline Reqt Occupied (Sq. Ft.) Airline Reqt Vacant (Sq. Ft.) Airline Reqt (Avg Term Rent Rt x Airline SF) Newton & Associates, Inc. 33,287 2,898 33,417 2,768 130 (130) 36,185 36,185 0 $1,915,360 $1,979,300 $63,941 166,753 163,950 (2,804) $2,082,113 $2,143,250 $61,137 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 cta CJ cta LL United 122 250 0 250 Vacant 119 250 250 0 Offices American 133 174 174 0 8,580 Delta 134 165 165 0 145, 137A, 131 Silver 135 168 168 0 202, 203,206, 230, 232 Silver 136 153 153 0 222,226 United 132 225 225 0 Delta /Silver 137 130 130 0 Bag Offices American 141 36 36 0 Delta 140 36 36 0 Silver 138 36 36 0 United 139 36 36 0 Vacant 142 36 0 36 Sub -total 2,735 2,199 536 0 Airline Assigned Second Floor: Ticketing & Queue American 200 -1,2,3 912 912 0 Delta 200 -4,5 608 608 0 Silver 200 -11 304 304 0 Vacant 2006,7 608 0 608 Vacant 200 -8 304 0 304 United 200 -9 304 304 0 Vacant 200 -10 304 0 304 Vacant 200 -12 304 0 304 3,648 2,128 1,520 0 Office Space American 223, 223 A -D 413 413 0 Delta 224, 224 A -C 420 420 0 Silver 228 A -B 172 172 0 Vacant 225, 225 A -C 470 0 470 United 227, 227 A -C 480 480 0 Vacant 228,228C 242 0 242 Sub -total Airline Assigned Total Airline Common First Floor: Restrooms (Non - Public) Baggage Claim Hold Rooms & Circulation Public Restrooms BMU /Bag Storage /Circulation Sub -total Airline Common Second Floor: Security Checkpoint Baggage Screening Circulation Sub -total Airline Common Total Total -Airline Space CONCESSION /RENTABLE SPACE Concession /Rentable Space First Floor Rental Car Food & Beverage Concessions Retail Concessions Sub -total Concession /Rentable Space Second Floor Food & Beverage Concessions Retail Concessions Offices /TSA Sub -total Total - Concession Space UBLIC SPACE Public Space - First Floor Public Space - Second Floor otal - Public Space DMINISTRATIVE SPACE -Second Floor 2,197 1,485 712 5,845 3,613 2,232 8,580 5,812 2,768 x -103, x -104 65 65 100 A/L 1,848 1,848 114, S- 101,115 6,152 6,152 128,129 488 488 145, 137A, 131 7,450 7,450 16,003 16,003 0 202, 203,206, 230, 232 6,144 6,144 231,233,235,236 4,830 4,830 222,226 628 628 11,602 11,602 0 27,605 27,605 0 36,185 33,417 2,768 60.04% 101,102,103,104 1,089 100 F &B,143,144,144 -A 4,773 105,123,124,125,126,127 1,023 6,885 216,219,221,221- A,221 -B 3,830 217,220 1,110 204,204- A,204- 8,205,218,229 2,259 7,199 14,084 100 Pub, 110,111 1,880 201,201- A,201- 8,208,209,212 8,122 10,002 60,271 1,898 23.37% 16.60% 100.00% cta cta I� co LL W 8 rya �a CI eta t� U_ LI �S Page 12 KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES Calculation of Airline Terminal Rental Amounts Airline Space: Ticket Counter Ticket Ramp Passenger Bag Bag EDS Screen/ Passenger Total Space Classification I & Queuing Offices Ops /Offices Holdroom Claim Make -Up Conveyor Screening Space Rental Rates $59.23 $59.23 $59.23 $59.23 $59.23 $59.23 $59.23 $59.23 Airline Exclusive Space: American Eagle 912 413 174 290 36 0 0 0 1,825 Go Silver 304 172 386 250 36 0 0 0 1,148 Delta 608 420 230 250 36 0 0 0 1,544 Incentive Space (United) 304 480 225 250 36 0 0 0 1,295 Vacant 1,520 712 0 500 36 0 0 0 2,768 Subtotal 3,648 2,197 1,015 1,540 180 0 0 0 8,580 0 Airline Non - Exclusive Space: Ticket Offices Circulation 0 628 0 0 0 0 0 0 628 Ramp Operations 0 0 65 0 0 0 0 0 65 Passenger Holdroom 0 0 0 6,152 0 0 0 0 6,152 Baggage Claim Area 0 0 0 0 2,336 0 0 0 2,336 Baggage Make -Up Area 0 0 0 0 0 7,450 0 0 7,450 EDS Screen /Conveyor Area 0 0 0 0 0 0 4,830 0 4,830 Passenger Screen Area 0 0 0 0 0 0 0 6,144 6,144 Subtotal 0 628 65 6,152 2,336 7,450 4,830 6,144 27,605 Total Airline Space 3,648 2,825 1,080 7,692 2,516 7,450 4,830 6,144 36,185 Rental Amount: American Go Silver Incentive Common Total Eagle United Exp Delta Vacant Space Use Amount Airline Space Ticket Counter & Queuing $54,018 $18,006 $36,012 $90,030 $18,006 0 $216,072 Ticket Offices 24,462 10,188 24,877 42,172 28,431 0 130,129 Ramp Operations 10,306 22,863 13,623 0 13,327 0 60,119 Pax Holdroom (Gates) 17,177 14,808 14,808 29,615 14,808 0 91,215 Bag Claim (Bag Kiosks) 2,132 2,132 2,132 2,132 2,132 0 10,661 Annual Rental $108,095 $67,996 $91,452 $163,950 $76,703 $0 $508,196 Common Use Space $0 $0 $0 $0 $0 $1,635,054 $1,635,054 Total Annual Rental $108,095 $67,996 $91,452 $163,950 $76,703 $1,635,054 $2,143,250 Est. Monthly Rental $9,008 $5,666 $7,621 $13,662 $6,392 $136,254 $178,604 Newton & Associates, Inc. 8/30/17 EYW FY 2018 Rates Charges vs4 08302017 cta cta I� co LL W 8 rya �a CI eta t� U_ LI �S �a CJ �a co LL w 04 W 0) CD e� U_ LI �S E Page 13 KEY WEST INTERNATIONAL AIRPORT FY 2018 AIRLINE RATES & CHARGES AIRPORT OPERATING STATISTICS Budget FY 18 FY 2018 Mid -Year Budget over Mid -Year Estimated FY 2017 FY 2018 Year FY 2017 Mkt Share ENPLANED PASSENGERS American (Envoy and Republic) 160,646 36.2% Delta 168,798 38.0% Silver 90,000 20.3% United 24,863 5.6% Fiscal Year Enplanements 387,739 444,307 56,568 100.00% Percent Increase /(Decrease) 14.6% Budget FY 18 FY 2018 Mid -Year Budget over Mid -Year Estimated FY 2017 FY 2018 Year FY 2017 Mkt Share ESTIMATED LANDING WEIGHTS: Passenger Airlines: American (Envoy and Republic) 169,827 203,155 33,328 36.9% Delta 183,845 195,437 11,592 35.5% Silver 93,313 115,197 21,884 20.9% United 9,979 30,870 20,891 5.6% Subtotal Pax Airlines 456,964 544,659 87,695 98.9% Cargo Airline(s): FedEx (Mountain Air Cargo) 3,961 3,808 (153) 0.7% Martinaire 748 2,363 1,615 0.4% Subtotal Cargo Airlines 4,709 6,171 1,462 1.1% Total Landing Weights 461,673 550,830 89,157 Percent Increase /(Decrease) 19.3% Newton & Associates, Inc. 8/30/2017 EYW FY 2018 Rates Charges vs4 08302017 �a CJ �a co LL w 04 W 0) CD e� U_ LI �S E