Loading...
Item C13C ounty of M onroe {f `° " rel BOARD OF COUNTY COMMISSIONERS n Mayor David Rice, District 4 The FlOfida Key y m �� 1 Mayor Pro Tem Sylvia J. Murphy, District 5 Danny L. Kolhage, District 1 George Neugent, District 2 Heather Carruthers, District 3 County Commission Meeting September 19, 2018 Agenda Item Number: C.13 Agenda Item Summary #4665 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: T.J Henderson (305) 289 -6302 none AGENDA ITEM WORDING: Approval of the FY2019 Airline Rates and Charges for the Key West International Airport, effective October 1, 2018. The rates are adjusted as follows: Average Terminal Rental Rate $59.96 per square feet ($1.79 increase), Landing Fee Rate $3.86 ($0.44 increase) and Checkpoint Security Charge $0.89 ($0.09 increase). The average Airline Cost per Enplaned Passenger will be $10.57. 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 overpayment's will be refunded to the air carriers by the Airport. ITEM BACKGROUND: As part of our annual budget process, Newton & Associates, Inc. has updated the Airport's Rates and Charges. On August 29, 2018, a conference was conducted with the Airlines to discuss the 2019 Rates and charges; Airline representatives present were Delta and American; United attended via conference call, and Silver was also invited but unable to attend. The airlines have reviewed and accepted the FY2019 Rates and Charges. 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 8 -22 -18 FINANCIAL IMPACT: Effective Date: 10/01/2018 Expiration Date: 09/30/2019 Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: n/a Budgeted: 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: N/A Insurance Required: Additional Details: REVIEWED BY: Beth Leto Completed 08/29/2018 3:27 PM T.J Henderson Completed 08/29/2018 5:26 PM Pedro Mercado Completed 08/29/2018 5:29 PM Budget and Finance Completed 08/30/2018 9:14 AM Maria Slavik Completed 08/30/2018 2:21 PM Kathy Peters Completed 08/31/2018 12:33 PM Board of County Commissioners Pending 09/19/2018 9:00 AM NIPM oo N ASSOCIRIPs, 111rc h�� # Ig Um ru"NUM.Twomem, To: EYW Air Carrier Representatives (Distribution Attached) Re: FY 2019 Airline Rates and Charges Key West International Airport Dear Air Carrier Representative: Please find attached for your review and records the FY 2019 Budget Airline Rates and Charges ("Rates and Charges ") for the Key West International Airport ( "Airport "). The Rates and Charges are calculated based on the Airport's estimated expenses for the subject year, using the same methodology that has been in place since 2002. As shown in the attached Rates and Charges package, the total Airport FY 2019 Budget Operating and Maintenance Expense and Capital Expense represents an increase of approximately $315,426 (4.1 %) compared to the FY 2018 estimated mid -year total. This increase is reflective of both necessary increases as well as certain decreases which are expected in FY 2019. FY 2019 Airline Rates and Charges Summary: The following summarizes the estimated Average Airline Terminal Rental Rate, Landing Fee Rate, Checkpoint Security Charge, average airline CPEP and estimated Landed weights and enplanements for FY 2019 compared to those estimated for FY 2018 at the mid -year point: Estimated Mid -Year Budget FY 2018 FY 2019 Var. $ 58.17 $ 59.96 $1.79 $ 3.42 $ 3.86 $0.44 $ 0.80 $ 0.89 $0.09 $ 9.37 $ 10.57 $1.20 550,830 519,743 (31,087) 444,307 411,612 (32,695) Page 1 of the Rates and Charges package provides a summary of key results of the FY 2019 Rates and Charges. Page 2 of the Rates and Charges package provides detail on the Airport O&M Expense budget for FY 2019. As shown, total Airport O &M Expenses have been budgeted to increase 1' rt ( ; Packet Pg. 520 06 Rc'­ R,v t ?, ��EE s �_ iARICTi E, NC `283? 13 � (704 ��9; /1." i/. � i'NX �G�E v5'.� �vd.✓ Nam`.!: C�NF�v10' ,Ai�GASSCC!ATE,.uOt+,1 6 VdV'ivd.N WTOi'IAN'T' SSOC.AT_ . = )P,,. ^. EYW Air Carrier Representatives August 23, 2018 Page 2 by 3.7 %, or $278,887 from $7,572,646 estimated for FY 2018 to the $7,851,534 in Budget FY 2019. Contractual Services - Security Expense: Page 4 of the package depicts the Airport's security expense requirements estimated for FY 2019. As shown, the Airport security expenses are budgeted to be $2,452,974, approximately $25,815 more than the amount estimated for FY 2018. The Airport is anticipating that the County will receive grant funds in the amount of $29,198 to offset this security expense, reducing its budgeted amount to $2,423,777 for the year. Landing 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 $2,230,528 ( "Airfield Requirement "). The Airfield Requirement is then reduced by estimated FY 2019 general aviation revenues ($224,254) resulting in a Net Airfield Requirement of $2,006,2784, an increase of $120,510 over the amount estimated for FY 2018. As for the estimated landed weights for the year, Newton & Associates, Inc. ( "NAI ") requested estimated total airline landed weights from each carrier for FY 2019. Based on the information provided, total airline landed weight (including cargo landed weight) for FY 2019 is estimated to be 519,743, a decrease of 31,087 units over the estimated FY 2018 level Based on the Net Airfield Requirement and the total estimated units of aircraft landed weight, the resulting Landing Fee Rate is $3.86, an increase of $0.44 compared to the estimated FY 2018 amount of $3.42. This increase in the landing fee rate is attributed to an increase in the Net Airfield Requirement and the decrease in total estimated airline landed weight for FY 2019. Airline Terminal Rental Rate: Page 10 presents the calculation of Terminal Rental Rates for FY 2019. Total projected FY 2019 O &M and Capital Expenses allocated to the Terminal cost center is $3,613,591 ( "Terminal Requirement "), which is $107,774 higher than the Estimated FY 2018 amount of $3,505,817. Note that the Terminal Requirement excludes directly billed airline checkpoint security reimbursement charges of $364,447 (Page 4) estimated for FY 2019. Based on the estimated Terminal Requirement and the total productive square footage of the terminal complex (60,271), the FY 2019 Average Terminal Rental Rate is $59.96 per square foot, which is a $1.79 increase over the Estimated FY 2018 average terminal rental rate of $58.17 per square foot. Airline Cost Per Enplaned Passenger: As with the estimated landed weights, NAI also requested the estimated annual enplanements from each carrier for FY 2019. As shown on Page 13, based on the information provided by the carriers, the enplanements for FY 2019 have been estimated to be 411,612, a decrease of R.. 1' EYW Air Carrier Representatives August 23, 2018 Page 3 32,695 when compared to the Estimated FY 2018 enplanements of 444,307. Based on this estimate of enplanements and the total amount of FY 2019 airline payments of $4,350,440 (Page 1) the estimated CPEP for Budget FY 2019 is $10.57, which $1.20 higher than the Estimated FY 2018 Mid -Year level ($9.37). Review Process and Moving Forward: On August 29, 2018 NAI will present the FY 2019 Budget Rates and Charges information to the passenger air carriers serving the Airport. The FY 2019 airline Rates and Charges as described herein will become effective October 1, 2019. As with past practice, the FY 2019 budget will be monitored over the coming months and any significant variances will be identified as part of a mid -year budget performance review. If significant variances to the FY 2019 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 2019. Furthermore, upon conclusion of the FY 2019 budget year and completion of the FY 2019 audited financial statements, the Airport will conduct its FY 2019 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. Attachment 1' Cc: Thomas J. Henderson, Acting Director of Airports Beth Leto, Airport Business Manager Deborah N. Zufall Key West International Airport Air Carrier Distribution List Mr. James Seadler Mr. Timothy DeBord American Airlines Delta Air Lines Mr. Brent James Mr. Gregory Kozak Silver Airways United Airlines R.. KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW 411 hVi /e1 :r1 Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. f1' Mid -Year Budget Budget Variance FY 2018 FY 2019 Over Mid -Year Percent Total Airport Operating & Maintenance Expense $7,572,646 $7,851,534 $278,887 Total Airport Capital Expense 55,904 92,442 36,538 Total Airport Operating, Maintenance & Capital Expense $7,628,550 $7,943,976 $315,426 4.1% Terminal Building: Terminal Requirement $3,505,817 $3,613,591 $107,774 3.1% Terminal Productive Square Footage 60,271 60,271 0 0.0% Terminal Rental Rate Per Square Foot $58.17 $59.96 $1.79 3.1% Six Month Slow Down Rate $57.10 $0.00 Airline Square Footage - Occupied 33,417 33,417 0 Airline Terminal Rentals $1,943,785 $2,003,540 $59,755 3.1% Airfield: Net Airfield Requirement $1,885,764 $2,006,274 $120,510 6.4% Total Aircraft Landed Weight 550,830 519,743 (31,087) -5.6% Airfield Landing Fee Rate Per 1,000 Pounds $3.42 3.86 $0.44 12.8% Six Month Slow Down Rate $3.32 0.00 Passenger Aircraft Landed Weight 544,659 513,572 (31,087) Passenger Airline Landing Fees $1,864,637 $1,982,453 $117,816 6.3% Security Reimbursement Direct Bill Charges $353,832 $364,447 $10,615 3.0% Per Enplaned Passenger $0.80 $0.89 $0.09 Total Estimated Airline Payments $4,162,255 $4,350,440 $188,186 4.5% Enplaned Passengers 444,307 411,612 (32,695) -7.4% Total Cost Per Airline Enplaned Passenger $9.37 $10.57 $1.20 12.8% Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. f1' KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Airport Operatina & Maintenance Expenses ARFF Non - Personal Services O &M Expense $192,548 $172,850 ($19,698) -10.2% Security Services Non - Personal Servcies- M &O Expense 95,617 71,417 (24,200) -25.3% TOTAL BASIC O &M EXPENSE Contractual Services - Security Security Services - MCSO Less FDOT /TSA Security Grants Net Contractual Services - Security TOTAL O &M AND SECURITY EXP. Newton & Associates, Inc. $5,203,882 $5,427,757 $223,875 4.3% $2,427,159 $2,452,974 $25,815 1.1% (58, 395) (29,198) 29,198 -50.0% $2,368,764 $2,423,777 $55,013 2.3% $7,572,646 $7,851,534 $278,887 3.7% 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. f1' Mid -Year Budget Increase/ Percent FY 2018 FY 2019 (Decrease) Change Personal Services 63201 Administrative $549,457 $605,712 $56,255 10.2% 63001 Maintenance 664,218 736,321 72,103 10.9% 63100 ARFF 1,297,351 1,416,643 119,292 9.2% 63200 Airport Security 235,538 223,026 (12,512) -5.3% Total Personal Services $2,746,564 $2,981,702 $235,138 8.6% Contractual Services (Non- Security) 530310 Professional Services $18,000 $18,000 $0 0.0% 530340 Other Contractual Services 691,411 701,275 9,864 1.4% 530410 Phone & Postage /Freight 37,400 38,500 1,100 2.9% 530440 Utility Services 460,000 450,000 (10,000) -2.2% 530440 Rentals & Leases 9,000 9,000 0 0.0% 530450 Insurance 21,000 21,500 500 2.4% 530451 Risk Management Charges 33,198 63,244 30,046 90.5% 530498 Advertising 1,272 1,000 (272) -21.4% Total Contractual Services $1,271,281 $1,302,519 $31,238 2.5% Supplies & Materials 530480 Promotional $5,000 $5,000 $0 0.0% 530510 Office Supplies 500 500 0 0.0% 530520 Operating Supplies 179,500 179,000 (500) -0.3% 530528 Internal Fuel 7,000 7,000 0 0.0% 530540 Books, Pubs, Subs, Educ, Mem 22,500 14,750 (7,750) -34.4% Total Supplies & Materials $214,500 $206,250 ($8,250) -3.8% General 590910 County Overhead Allocation $331,280 $331,280 $0 0.0% 530400 Travel & Per Diem 13,500 11,500 (2,000) -14.8% 530409 Vehicle Maintenance 17,876 23,039 5,163 28.9% 530460 Repairs and Maintenance 318,216 325,000 6,784 2.1% 530461 Repairs and Maintenance - Building 0 0 0 NA 530470 Printing and Binding 2,300 2,000 (300) -13.0% 530490 Miscellaneous Expenses 200 200 0 0.0% Total General $683,372 $693,019 $9,647 1.4% ARFF Non - Personal Services O &M Expense $192,548 $172,850 ($19,698) -10.2% Security Services Non - Personal Servcies- M &O Expense 95,617 71,417 (24,200) -25.3% TOTAL BASIC O &M EXPENSE Contractual Services - Security Security Services - MCSO Less FDOT /TSA Security Grants Net Contractual Services - Security TOTAL O &M AND SECURITY EXP. Newton & Associates, Inc. $5,203,882 $5,427,757 $223,875 4.3% $2,427,159 $2,452,974 $25,815 1.1% (58, 395) (29,198) 29,198 -50.0% $2,368,764 $2,423,777 $55,013 2.3% $7,572,646 $7,851,534 $278,887 3.7% 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. f1' KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW OTHER CONTRACTUAL SERVICES - DETAIL Budget Mid Year Budget FY 2018 1 FY 2019 Terminal I Airfield I GA I Other I Total Other Contractual Services Line Item $691,411 $701,275 $389,941 $71,593 $0 $239,741 $701,275 Landscaping Gardens of Eden $101,000 $102,275 $15,341 $71,593 $0 $15,341 $102,275 Elevator Thyssenkrupp Elevator 21,072 21,000 21,000 0 0 0 21,000 Parking Mgt. USA Parking 161,104 162,000 0 0 0 162,000 162,000 Janitorial Cliffhanger 408,235 416,000 353,600 0 0 62,400 416,000 Other Courier 0 0 0 0 0 0 0 Other Contractual Services Allocation $691,411 $701,275 $389,941 $71,593 $0 $239,741 $701,275 Expense Distribution For Other Contractual Services 56% 10% 0% 34% 100% Source: Other Contractual Services provided by Monroe County, Airports Business Office. Note: Landscaping Expense allocated 70% to "Airfield ", 15% to "Terminal' and 15% to "Other ". Elevator Expense allocated 100% to "Terminal'. Parking Mgt Fees Allocated 100% to "Other ". Janitorial expenses allocated 85% to 'Terminal' and 15% to "Other" to reflect services provided at the Adams Arnold Annex. R.. Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 Page 4 KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW irport Security Requirements Airport Security Cost Requirement: Mid -Year FY 2018 1 1 Budget FY 2019 Less County Less County Requirement Grants Portion Requirement Grants Portion Total Estimated $2,427,159 ($58,395) $2,368,764 $2,452,974 ($29,198) $2,423,777 Checkpoint Security per Enplanement Charge: Mid -Year Budget FY 2018 FY 2019 Total County Security Requirement $2,368,764 $2,423,777 Amount Allocated Directly to Airlines Checkpoint Security $353,832 $364,447 Other TSA Airline Security - Airline Portion 0 0 Total Amount Allocated Directly to Airlines $353,832 $364,447 Enplaned Passengers 444,307 411,612 Per Passenger Reimbursement $0.80 $0.89 Net Security Allocated to Cost Centers $2,014,932 $2,059,330 Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Airport Operating & Maintenance Personal Services Administrative Maintenance ARFF Airport Security Total Personal Services 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 General County Overhead Allocation Travel & Per Diem Vehicle Maintenance Charges Repairs and Maintenance Repairs and Maintenance - Buildings Printing and Binding Miscellaneous Expenses Total General $605,712 $302,856 $151,428 $60,571 $90,857 736,321 $294,528 $147,264 $73,632 $220,896 1,416,643 $141,664 $1,133,314 $70,832 $70,832 223,026 $89,210 $66,908 $44,605 $22,303 $2,981,702 $828,259 $1,498,914 $249,641 $404,888 --- - - - - -- Allocation ----- - - - - -- Budget General FY 2019 Terminal I Airfield I Aviation Other se Allocations $18,000 $10,800 $1,800 $2,700 $2,700 701,275 389,941 71,593 0 239,741 38,500 23,100 3,850 5,775 5,775 450,000 354,326 38,704 0 56,970 9,000 5,400 900 1,350 1,350 21,500 12,900 2,150 0 6,450 63,244 44,271 0 0 18,973 1,000 600 100 150 150 $1,302,519 $841,338 $119,097 $9,975 $332,109 $5,000 $3,000 $500 $750 $750 500 300 50 75 75 179,000 107,400 17,900 26,850 26,850 7,000 4,200 700 1,050 1,050 14,750 8,850 1,475 2,213 2,213 $206,250 $123,750 $20,625 $30,938 $30,938 $165,640 $82,820 $33,128 $49,692 2,875 2,875 2,875 $2,875 5,760 5,760 5,760 5,760 81,250 81,250 81,250 81,250 0 0 0 0 500 500 500 500 50 50 50 50 $256,075 $173,255 $123,563 $140,127 ARFF Non - Personal Services O &M Expense $331,280 11,500 23,039 325,000 0 2,000 200 $693,019 $172,850 Security Services Non - Personal Servcies- M &O Expense 71,417 SUBTOTAL BASIC O &M 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. 8/22/18 EYW FY 2019 Budget R &C 08222018 $17,285 $138,280 $8,643 $8,643 53,563 7,142 3,571 7,142 $5,427,757 $2,120,270 $1,957,312 $426,329 $923,846 $2,452,974 $1,839,731 $245,297 $122,649 $245,297 (29,198) (21,898) (2,920) (1,460) (2,920) (364,447) (364,447) 0 0 0 $2,059,330 $1,453,386 $242,378 $121,189 $242,378 $7,487,087 $3,573,655 $2,199,690 $547,518 $1,166,223 100% 48% 29% 7% 16% KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Airport 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 rcernages - - - - Cost Center Allocation - - - - 10% 15% General 100% 56% Terminal I Airfield I Aviation Other I 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% 14% 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% 65% 9% 1% 25% 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% 37% 25% 18% 20% 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% 7% 16% 100% Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. f1' KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW & Purchases Cost Center Allocation Capital Projects: Terminal Chiller Replacement Total Capital Purchases: Expensed: Subtotal Expensed I Amortized: Subtotal Amortized Total Capital Purchases Year In Total Service Cost Less Grants Less PFCs Local Share =or< $5K To Be Expensed Amortized Initial Final Amount @ Yrs. Amort. Chg. Amort. Chg. 5.00% Terminal Airfield General Aviation Other Leased 2019 $0 $0 $0 $121,239 $0 121,239 10 2020 2029 $15,701 $15,701 $0 $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $121,239 $0 $121,239 $15,701 $15,701 $0 $0 $0 Total Projects & Purchases being "Expensed" FY 2019 Total Projects & Purchases being "Amortized" Beginning FY 2020 I Newton &A-cit.., Inc. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 $0 $0 0 0 0 0 $0 $0 0 0 0 0 $0 $0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $C 0 0 0 0 0 $0 $0 $0 $0 $C $0 $0 $0 $0 $C $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 0 0 0 $0 $0 $0 $0 $C $0 $0 $0 $0 $C $0 $121,239 $15,701 $15,701 $0 $0 $C 8/22/18 EYVV FY 2019 Budget R &C 08222018 • r Y • Y Capital Amortization KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Page 8 - - - - -- Cost Center Allocation - - - - -- Year In To Be Initial Final Amount @ General Other Service Amortized Yrs. Amort. Chg. Amort. Chg. 5.00% Terminal Airfield Aviation Leased Capital Projects: Airport Admin Building 560620 Admin 2015 $49,313 5 2016 2020 $11,390 $5,695 $2,848 $1,139 $1,709 Taxiway Shoulder Widening 530630 Airfield 2017 31,050 10 2018 2027 $4,021 $0 $0 $4,021 $0 Hurrican Windows - Arrival Bldg Terminal 2018 21,555 15 2019 2033 $2,077 $1,038 $519 $208 $311 Restroom Fixtures Terminal 2018 15,000 12 2019 2028 $1,692 $1,692 $0 $0 $0 Total $116,918 $19,180 $8,426 $3,367 $5,368 $2,020 Capital Purchases: Amortized: HD Truck Term /Airfield 2014 $30,518 5 2015 2019 $7,049 $3,524 $3,524 $0 $0 Vehicle Purchase (Director) Admin 2015 24,868 5 2016 2020 5,744 2,872 1,436 574 862 Mamava Lactation Suite Terminal 2016 16,995 5 2017 2021 3,925 3,925 0 0 0 Towable Diesel Pump Airfield 2016 8,000 5 2017 2021 1,848 0 739 1,109 0 Departure Area Seating Terminal 2017 19,170 5 2018 2022 4,428 4,428 0 0 0 Airfield Golf Cart - Maintenance Airfield 2017 6,300 5 2018 2022 1,455 582 582 146 146 30K Plane Skate Airfeld 2017 13,725 5 2018 2022 3,170 0 1,585 1,585 0 Departure Bldg A/C Systems Terminal 2017 40,433 10 2018 2027 5,236 5,236 0 0 0 Airfield Maintenance Truck Airfield 2017 18,693 10 2018 2027 2,421 0 2,421 0 0 Maintenance P/U Truck Term /Airfield 2017 9,788 5 2018 2022 2,261 904 904 226 226 ARFF Vehicle Term /Airfield 2018 296,336 15 2019 2033 28,550 11,420 11,420 2,855 2,855 Ops /Security Truck Term /Airfield 2018 16,713 5 2019 2023 3,860 1,544 1,544 386 386 MCSO Utility Vehicle Airfield 2018 7,175 5 2019 2023 1,657 0 1,657 0 0 MCSO Golf Cart (2) Apron Liaison Airfield 2018 7,178 5 2019 2023 1,658 0 1,658 0 0 Total Capital Purchases $515,892 $73,262 $34,436 $27,471 $6,881 $4,474 Total Projects & Purchases being "Amortized" FY 2019 $632,810 $92,442 $42,862 $30,838 $12,249 $6,494 Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 Page 9 KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Landina Fee Calculation AIRFIELD O &M EXPENSE: Budget FY 2019 Mid -Year Budget Over Mid -Year FY 2018 FY 2019 FY 2018 Personal Services $1,378,750 $1,498,914 $120,164 Contractual Services 118,931 119,097 165 Supplies & Materials 21,450 20,625 (825) General 170,843 173,255 2,412 ARFF Non - Personal Services O &M Expense 154,038 138,280 (15,758) Security Services Non - Personal Servcies- M &O Expen: 9,562 7,142 (2,420) Subtotal Airfield - Basic O &M Component $1,853,574 $1,957,312 $103,738 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 $236,876 $242,378 $5,501 $2,090,451 $2,199,690 $109,239 $14,039 $30,838 $16,798 3,098 0 (3,098) $17,137 $30,838 $13,701 TOTAL AIRFIELD REQUIREMENT: Less: Estimated General Aviation Revenue NET AIRFIELD REQUIREMENT $2,107,588 $2,230,528 $122,940 (221,824) (224,254) (2,430) $1,885,764 $2,006,274 $120,510 LANDING FEE CALCULATION: Est Passenger Airline Landed Weight (000 Lb. Units) 544,659 513,572 (31,087) Est Cargo Airline Landed Weight (000 Lb. Units) 6,171 6,171 0 Est Total Airline Landed Weight (000 Lb. Units) 550,830 519,743 (31,087) Airline Landing Fee Rate* *(Net Airfield Requirement / Airline Landed Weight) Six -Month Mid -Year Rate $3.42 $3.86 $0.44 3.32 0.00 Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 Page 10 KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Terminal Rental Rate Calculation Budget 2019 Mid -Year Budget Over Mid - FY 2018 FY 2019 Year FY 2018 TERMINAL O &M EXPENSE: $0 $0 27,167 Personal Services $764,366 $828,259 $63,893 Contractual Services -Non Security 820,664 841,338 20,674 Supplies & Materials 128,700 123,750 (4,950) General 253,663 256,075 2,412 ARFF Non - Personal Services O &M Expense 19,255 17,285 (1,970) Security Services Non - Personal Servcies- M &O Expense 71,712 53,563 (18,150) Subtotal Terminal Basic O &M Expense $2,058,360 $2,120,270 $61,910 Less: 10% Departure Lounge Restroom Credit (2,839) (2,926) (87) Net Terminal Basic O &M Expense $2,055,522 $2,117,344 $61,822 Net Contractual Services - Security (Page 5) $1,422,741 $1,453,386 $30,644 Net Terminal O &M Requirement $3,478,263 $3,570,730 $92,467 TERMINAL CAPITAL EXPENSE: Debt Service (Bonds /Notes) Terminal Amortization (Page 8) Terminal Capital Expense (Page 7) Total Terminal Capital Requirement TERMINAL REQUIREMENT: TERMINAL RENT CALCULATION: Terminal Basic O &M and Capital Requirement Total Terminal Productive Space (Sq. Ft.) Terminal Rental Rate - Basic O &M Component $0 $0 $0 27,167 42,862 15,695 387 0 (387) $27,554 $42,862 $15,307 $3,505,817 $3,613,591 $107,774 $2,083,076 $2,160,206 $77,130 60,271 60,271 0 $34.56 $35.84 $1.28 Security Component- Terminal Requirement $1,422,741 $1,453,386 $30,644 Total Terminal Productive Space (Sq. Ft.) 60,271 60,271 0 Terminal Rental Rate - Security Component $23.61 $24.11 $0.51 Average Terminal Rental Rate PSF (Terminal Requirement/Total Terminal Productive Space) Six -Month Mid -Year Rate AIRLINE SPACE RENTAL Airline Space Occupied (Sq. Ft.) Airline Space Vacant (Sq. Ft.) Airline Space Total (Sq. Ft.) $58.17 $59.96 $1.79 57.10 $0.00 33,417 33,417 0 2,768 2,768 0 36,185 36,185 0 Airline Reqt Occupied (Sq. Ft.) Airline Reqt Vacant (Sq. Ft.) Airline Reqt (Avg Term Rent Rt x Airline SF) Newton & Associates, Inc. $1,943,785 $2,003,540 $59,755 161,008 165,957 4,950 $2,104,793 $2,169,498 $64,705 8/22/18 EYW FY 2019 Budget R &C 08222018 KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW Allocation Terminal Productive Space # Sq. Ft Leased Available Sq. Ft AIRLINE SPACE 223, 223 A -D 413 413 0 Delta 224, 224 A -C Airline Assigned First Floor: 420 0 Silver 228 A -B 172 172 0 Departure Gates Amencan 121 290 290 0 480 Delta 118 250 250 0 Silver 120 250 250 0 Vacant 117 250 0 250 United 122 250 0 250 Vacant 119 250 250 0 Offices Amencan 133 174 174 0 Delta 134 165 165 0 Silver 135 168 168 0 Silver 136 153 153 0 United 132 225 225 0 Delta /Silver 137 130 130 0 Bag Offices Amencan 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 Amencan 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 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: Secunty 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 PUBLIC SPACE Public Space -First Floor Public Space - Second Floor Total - Public Space TOTAL PRODUCTIVE SPACE ADMINISTRATIVE SPACE - Second Floor Amencan 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 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- B,205,218,229 2,259 7,199 14,084 100 Pub, 110,111 1,880 201,201- A,201- B,208,209,212 8,122 10,002 r1'JCffl SUPPORTSPACE Support Space - First Floor X100, X101, X102, X105, 106 ,108,112,115 -A, 115- B,115C,116, 130 1,284 Support Space - Second Floor 210, 211, 213, 214, 215 ,234,237,238,239,240,241,242, 3,156 Total - Support Space 4,440 TOTAL BUILDING 66,609 Prepared by Newton 8 ASSOaates, Inc. 8222018 EVW FV 2019 Budget R &C 08222018 V*Bml ii ii•. r• R.. R.. R,, Page 12 KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW 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 $59.96 $59.96 $59.96 $59.96 $59.96 $59.96 $59.96 $59.96 Airline Exclusive Space: American Eagle 912 413 174 290 36 0 0 0 1,825 Silver 304 172 386 250 36 0 0 0 1,148 Delta 608 420 230 250 36 0 0 0 1,544 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 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 Common Total Eagle Silver Delta Vacant United Use Amount Airline Space Ticket Counter & Queuing $54,680 $18,227 $36,453 $91,133 $18,227 0 $218,718 Ticket Offices 24,762 10,312 25,181 42,688 28,779 0 131,723 Ramp Operations 10,432 23,143 13,790 0 13,490 0 60,855 Pax Holdroom (Gates) 17,387 14,989 14,989 29,978 14,989 0 92,332 Bag Claim (Bag Kiosks) 2,158 2,158 2,158 2,158 2,158 0 10,792 Annual Rental $109,419 $68,829 $92,572 $165,957 $77,643 $0 $514,420 Common Use Space $0 $0 $0 $0 $0 $1,655,078 $1,655,078 Total Annual Rental $109,419 $68,829 $92,572 $165,957 $77,643 $1,655,078 $2,169,498 Est. Monthly Rental $9,118 $5,736 $7,714 $13,830 $6,470 $137,923 $180,791 Newton & Associates, Inc. 8/22/18 EYW FY 2019 Budget R &C 08222018 R.. R,, R.. R,, Page 13 KEY WEST INTERNATIONAL AIRPORT FY 2019 BUDGET AIRLINE RATES & CHARGES REVIEW AIRPORT OPERATING STATISTICS Budget FY 2019 FY 2019 Mid -Year Budget Over Mid -Year Estimated FY 2018 FY 2019 FY 2018 Mkt Share ENPLANED PASSENGERS American 160,646 147,077 (13,569) 35.7% Delta 168,798 146,731 (22,067) 35.6% Silver 90,000 88,338 (1,662) 21.5% United 24,863 29,466 4,603 7.2% Fiscal Year Enplanements 444,307 411,612 (32,695) 100.00% Percent Increase /(Decrease) -7.4% Budget FY 2019 FY 2019 Mid -Year Budget Over Mid -Year Estimated FY 2018 FY 2019 FY 2018 Mkt Share ESTIMATED LANDING WEIGHTS: Passenger Airlines: American 203,155 186,416 - 16,739 35.9% Delta 195,437 181,611 - 13,826 34.9% Silver 115,197 107,265 -7,932 20.6% United 30,870 38,280 7,410 7.4% Subtotal Pax Airlines 544,659 513,572 - 31,087 98.8% Cargo Airline(s): FedEx (Mountain Air Cargo) 3,808 3,808 0 0.7% Martinaire 2,363 2,363 0 0.5% Subtotal Cargo Airlines 6,171 6,171 0 1.2% Total Landing Weights 550,830 519,743 - 31,087 100.0% Percent Increase /(Decrease) -5.6% Newton & Associates, Inc. 8/22/2018 EYW FY 2019 Budget R &C 08222018 R.. R,,