PSO 02-EYW Economic Impact Study Phase I PURCHASE/SERVICE ORDER
FOR
MONROE COUNTY
Effective Date: (April USe CU-W ail Purchase Service Order No. 02-EYW
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Client Project No: 18071070 f� -KD 13S- 53) I a)
Project Name: Economic Impact Study Phase I
Description of Services:
(See attached Scope of Services consisting of_5 pages)
Days to Complete 50 days Lump Sum Fee $46,681
Payment for Services shall be in their entirety as per PSO.
Witness: Consultant:
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Name: k, .4 5 . /J 9? Name: 4,. 054482-•••
Date: 1.4- 5 I -19 /, `�1 Date: l4 51t z o ci
Accepted by: Approv • , - ----
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Director of Airports A st./County Administrator
Date: f ( /1 ! Date: 51( Il
E COU A O EY
A ROV
PEDRO J ERCADO
ASSISTANN 1
Date
11111111 RICONDO®
January 22, 2019
Mr. Richard Strickland
Director of Airports
County of Monroe
3491 South Roosevelt Blvd
Key West, FL 33040
RE: Proposed Scope of Services to Conduct an Economic Impact Study— Phase I
Dear Mr. Strickland:
Ricondo &Associates (Ricondo) is pleased to submit the attached proposed scope of services and
related costs to conduct an economic impact study evaluating the individual economic benefits
associated with the Key West International Airport.
Ricondo estimates that Phase I of the economic impact study will be completed in seven weeks
and proposes a total fee not to exceed $46,681, which will be invoiced on a lump sum basis.
We value our relationship with the County of Monroe and look forward to working with you on
this assignment. If you have any questions regarding this scope of work and proposal or would
like to discuss further, please don't hesitate to contact me at 513-651-4700 ext. 211 or by email
at bossege@ricondo.com.
Sincerely,
RICONDO &ASSOCIATES,INC.
(4.
Bonnie A. Ossege
Vice President
Attachments
cc: Robin Brinkman, Ricondo
Bryan Elliott, Ricondo
312 WALNUT STREET I SUITE 3310 I CINCINNATI,OH 45202 I TEL 513-651-4700 I WWW.RICONDO.COM
COUNTY OF MONROE KEY WEST INTERNATIONAL AIRPORT
Proposed Scope of Services
to Conduct an Economic Impact Study
Phase I
1.0 Objective
Ricondo &Associates, Inc. (Ricondo) is pleased to submit this proposed scope of services and related costs to
conduct an economic impact study for the County of Monroe (County) to measure the direct and indirect
economic impacts of the Key West International Airport(Airport). The following sections describe our technical
approach, schedule, and cost estimate for completing Phase I of this project.
2.0 Technical Approach
In conducting economic impact studies, Ricondo employs general methodologies and definitions of economic
impact as described by the Federal Aviation Administration (FAA). The FAA states that economic impacts
measure the importance of aviation as an industry in terms of the employment it provides and the goods and
services it consumes. In addition, economic impacts are the beneficial results that help to generate and sustain
public support for airports. The following definitions of economic impact will be used in this study:
• Direct Impacts are consequences of economic activities carried out at the Airport by various tenants
having a direct involvement in aviation (e.g., passenger airlines, airport management, fixed base
operators, etc.). Employing labor, purchasing locally produced goods and services, paying taxes, and
contracting for capital improvements are good examples of activities at the Airport that generate these
direct impacts. Strictly speaking, direct impacts represent economic activities that would not have
occurred in the absence of the Airport.
• Indirect Impacts derive primarily from off-site economic activities that are partially attributable to the
Airport. For these analyses, these indirect impacts will be measured by local expenditure patterns by
air traveler visitors utilizing the Airport.
• Induced Impacts are the multiplier effects of the direct and indirect impacts. These effects are the
increases in employment and expenditures created by successive rounds of local spending and hiring.
Proposed Scope of Services January 22,2019
Economic Impact Study—Phase I [1]
•
COUNTY OF MONROE KEY WEST INTERNATIONAL AIRPORT
2.1 POPULATION IDENTIFICATION
Each of the tenants at the Airport will be identified from County records and classified into the following
categories:
• Airlines
• Concessions
• Fixed-base Operators (FBOs)
• Administration
• Governmental Agencies
• Other Tenants
During this task, a database of tenant contacts and email addresses will be generated in preparation for Task
2.2.
2.2 TENANT SURVEY
To estimate the direct economic impacts of the Airport, it is anticipated that the following information will be
collected for calendar year(CY) 2018:
• Employment (full-time equivalent)
• Payroll
• Gross Sales
• Taxes (property, sales, and employee)
• Capital Improvements (last three years/average)
• Other Operating Expenses (total less payroll)
Each of the tenants identified in Task 2.1 will be emailed a survey form, which will be accompanied by a cover
letter drafted by Ricondo and put on County stationery. This cover letter will explain the purpose and
importance of the requested information. Follow up phone calls, emails, and/or personal visits will be used to
fill out the database as completely as possible.
2.3 AIR TRAVELER VISITORS
Spending patterns by air traveler visitors using commercial service at the Airport will be estimated from the
most current data available from visitor profiles obtained from local visitor and convention bureau(s). This data
contains comprehensive analyses on visitor spending patterns in the region specific to the Airport.
Estimated impacts associated with visitors utilizing general aviation aircraft at the Airport will be provided by
relevant relationships compiled by the General Aviation Manufacturers Association (GAMA).
2.4 CY 2018 ECONOMIC IMPACTS
Direct and indirect economic impacts at the Airport will be estimated from the data collected from Task 2.2 and
Task 2.3. In those tenant categories where a less than 100 percent response rate is achieved, Ricondo will
extrapolate the sample data to the population.
Proposed Scope of Services January 22, 2019
Economic Impact Study—Phase I [2]
•
COUNTY OF MONROE KEY WEST INTERNATIONAL AIRPORT
The estimated direct and indirect impacts will represent the primary impacts associated with the Airport. The
multipliers used in this study will be region-specific to the Airport and will vary according to the tenant category,
as well as within the category.
2.5 DOCUMENTATION AND PRESENTATION OF RESULTS
Ricondo will prepare a presentation (in PowerPoint format) containing an executive summary containing the
results of the study. This presentation will be used by the County to prepare promotional materials that
highlight the economic impact of the Airport.
Ricondo will present the executive summary of the economic impact study to County staff during an on-site
meeting. This meeting will include the participation of two Ricondo staff.
3.0 Schedule
Ricondo estimates that the economic impact study will be completed in seven weeks from notice to proceed.
A proposed timeline to conduct the economic impact study is presented below:
STEPS ESTIMATED
TIMEFRAME
Coordination with County staff/Population identification Week 1
Create and distribute surveys Week 2
Prepare database/Research visitor spending patterns Week 3
Follow-up on surveys Weeks 3-5
Analyze survey results/Apply multipliers Week 6
Prepare and present executive summary to County staff Week 7
4.0 Budget
The budget to conduct an economic impact study is depicted in the attached Table 1. As shown, this project
will be performed for a fee not to exceed $46,681,which will be invoiced on a lump sum basis.
Proposed Scope of Services January 22,2019
Economic Impact Study—Phase I [3]
•
•
•
•
•
•
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Table 1
Fee Estimate for Key West International Airport
Economic Impact Study-Phase I
Officer Director Managing Consultant Senior Consultant Admin/Graphics Support Total Labor Reimbursable Total
Task Hours I Cost Hours I Cost Hours I Cost Hours I Cost Hours I Cost Hours I Cost Expenses Fee Estimate
'Billing Rate $ 337 Rate $290 $ 240 $ 199
$ 95I
•
1.Population Identification 0 $ - 2 $ 580 8 $ 1,920 16 $ 3,184 0 $ - 26 $ 5,684 $ - $ 5,684
2.Tenant Survey 1 $ 337 2 $ 580 8 $ 1,920 8 $ 1,592 8 $ 760 27 $ 5,189 $ - $ 5,189
3.Air Traveler Visitors 1 $ 337 4 $ 1,160 12 $ 2,880 16 $ 3,184 0 $ - 33 $ 7,561 $ - $ 7,561
4.CV 2018 Economic Impacts° 2 $ 674 4 $ 1,160 16 $ 3,840 60 $ 11,940 0 $ - 82 $ 17,614 $ 275 $ 17,889
5.Documentation and Presentation of Results` 8 $ 2,696 8 $ 2,320 4 $ 960 8 $ 1,592 2 $ 190 30 $ 7,758 $ 2,600 $ 10,358
Total 12 $ 4,044 20 $ 5,800 48 $ 11,520 108 $ 21,492 10 $ 950 198 $ 43,806 $ 2,875 $ 46,681
NOTES:
1/Includes cost to access Regional Input-Output Modeling System(RIMS IA data from the U.S.Department of Commerce.Bureau of Economic Analysis(BEA).
2/Includes one 00-site meeting for two Ricendo staff to present survey results
SOURCE:Riconda a Associates.Inc,January 30tg
• ) d
•
FDC.117'1)
Florida Department of Transportation
RON DESANTIS 1000 NW 111 Avenue ERIK THIBAULT
GOVERNOR Miami,FL 33172-5800 SECRETARY
February 18,2019
Beth Leto
Sr. Airport Business Manager
Key West International Airport
Monroe County Airports
3491 South Roosevelt Blvd.,
Key West,FL 33040
RE.: Key West International Airport Planning Studies
FM#439285-1-94-01 Contract G0E77
Dear Ms.Leto:
The Modal Development Office is in receipt of Monroe County's request for economic impact study for Key
West International Airport:
• Phase 1 — involves fact gathering, data collection, air traveler surveys and profiles, and tenant
impacts, i.e., number of employees, payroll, gross, sales, average three years capital improvements,
etc. Estimated cost$46,681.00
• Phase 2 —report to document of all results, including an executive summary, purpose of the study,
profile of the Airport, average impact per route of air service activities, cost per enplanes
passenger, revenue per passenger, and relevant tables, maps, charts and exhibits of the key
findings. Estimated Cost$35,266
Based on the information provided, FDOT concurs with Monroe County's request. Only expenses incurred on or
after the date of the fully executed JPA/PTGA and otherwise eligible under the Agreement shall be reimbursed to
Monroe County Airports—Key West International Airport.
Should you have any questions or need additional information, please feel free to call me at(305)470-5411.
Sincerely,
Sunshine D. Cayubit
Aviation & Seaport Programs Administrator
Office of Modal Development-FDOT-District 6
Cc: Dionne Richardson
File
www.fdot.gov