PSO 11-EYW Series 2022 Feasibility Report fie° ' ," Kevin Madok, CPA
'o; 'ro Clerk of the Circuit Court& Comptroller—Monroe County, Florida
DATE: October 26, 2020
TO: Beth Leto, Airports
Business Manager
FROM: Pamela G. Hanco c .C.
SUBJECT: October 21° BOCC Meeting
Attached is an electronic copy of each of the following items for your handling.
C35 Purchase Service Order 11-EYW with Ricondo& Associates, Inc., in the amount
of 8119,000.00. Ricondo&Associates, Inc. in collaboration with Newton&Associates, Inc.will
be assisting in the development of a feasibility report in conjunction with the anticipated issuance
of Series 2022 General Airport Revenue Bonds for the new Concourse A program at die Key
West International Airport.
- C44 7'Amendment to the Conch Flyer Concessions LLC lease agreement at the Key
West International Airport to add a section to the lease regarding cooperation during airport
development activities.
Should you have any questions please feel free to contact me at(305) 292-3550.
cc: County Attorney
Finance
File
KEY WEST MARATHON PLANTATION KEY PK/ROTH BUILDING
500 Whitehead Street 3117 Overseas Highway 88820 Overseas Highway 50 High Point Road
Key West,Florida 33040 Marathon,Florida 33050 Plantation Key,Honda 33070 Plantation Key,Florida 33070
305-294-4641 305-289-6027 305-852-7145 305-852-7145
PURCHASE/SERVICE ORDER
FOR
MONROE COUNTY
Effective Date: Upon Execution Purchase Service Order No. I1-EYW
Client Project No: 18071070
Project Name: Series 2022 Feasibility Report and Related Services
Description of Services:
Provide for Series 2022 Feasibility Report and Related Services for Key West International
Airport.
(See attached Scope of Services consisting of 2 pages)
Days to Complete 365 days Lump Sum Fee $119,000
Note: The scope of services will be satisfied when: (a)this PSO has expired per the above days
to complete or(b)the above Lump Sum Fee has been exhausted.
Witness: Consultant:
e"....eaC--- (3- di
N
GJ
-1
Name: Michael L. Scott Name: Bonnie A. Osseee —�
eT •. le: 10/02/2020 Date: 10/02/2020
a
tI„
dam, = r.
_6` o
r
_ �.. N c'
• Attest: Kevin Madok,Clerk Board of County Commissioners of
/ Monroe County Florida
B Deputy Clerk Mayor/Ch
or/Ch rman
? ROE A.leHNEY
FORM
Date: 022p&-‘1, Zli ye Zo
AROWJEY
Dale 10/5/20
KEY WEST INTERNATIONAL AIRPORT OCTOBER 2,2020
SCOPE OF SERVICES FOR SERIES 2022 FEASIBILITY REPORT
AND RELATED SERVICES
OUR UNDERSTANDING
Monroe County Department of Airports (the County) is requesting assistance with the development of a Report of
the Airport Consultant(the Feasibility Report)in conjunction with the anticipated issuance of the Series 2022 General
Airport Revenue Bonds (Series 2022 Bonds)for the Key West International Airport(the Airport)as described below.
Ricondo &Associates, Inc., (Ricondo)will team with Newton &Associates, Inc. (Newton)to collectively provide the
services under each firms contract with the County. Ricondo's role will be described below.
OBJECTIVE
The objective of this task is for Ricondo to assist in the development of the Feasibility Report to be incorporated in
the Official Statement for the issuance of the Series 2022 Bonds as well as financial planning services related to the
issuance of the Series 2022 Bonds (Series 2022 Feasibility Services) for the Airport. The Feasibility Report will be
prepared in accordance with the schedule for the financing as developed by the financing team, after a Notice to
Proceed (NTP) is issued by the County.The County intends to issue the Series 2022 Bonds to fund a project related
to Concourse A construction the(Project) and Ricondo will perform the following tasks:
SCOPE OF WORK
TASK 1 — PRELIMINARY FINANCIAL PLANNING
This task includes the analysis of the capital improvement plan and its overall affordability. Additionally, this task
will provide an analysis of the magnitude of the bond issuance for the Project and its impacts to rates and charges
and cost-per-enplanement (CPE) and will be coordinated with the County's financial advisor. This task will also
include presentations and meetings with other Monroe County staff to update them on the status of the efforts.
TASK 2 - FEASIBILITY REPORT
Ricondo will provide certain sections of the Feasibility Report to be incorporated into the document by Newton.
Ricondo will be responsible for the following subtasks of the Feasibility Report.
TASK 2.1 - INITIAL COORDINATION AND DATA GATHERING
This task will include coordination with County staff, as well as external organizations, to gather necessary
information to develop the Feasibility Report, including but not limited to: operation, financial and statistical data
of the Airport, socioeconomic information, and industry data. Ricondo will prepare and transmit a data request
memorandum detailing information to be provided by the County. Ricondo will attend an in-person coordination
meeting (assumes two (2) Ricondo consultants)with the County,the County's financial advisor and Newton-
Series 2022 Feasibility Report and Related Services I
KEY WEST INTERNATIONAL AIRPORT OCTOBER 2, 2020
TASK 2.2 - DEMOGRAPHIC AND ECONOMIC ANALYSIS
Demand for air service within an airports Air Trade Area is, in large measure,a function of underlying economic and
demographic trends.This chapter will examine the economic and demographic trends present in the Air Trade Area,
on a historical basis based on data gathered from governmental and private sources. Factors reviewed in this chapter
include industrial activity measured by gross domestic product or total personal income; population trends and
characteristics; employment trends and distribution; wealth levels and trends; and the identification of major
employers and drivers of tourism based activity such as cultural and recreational attractions. The chapter will also
include a discussion of projections of key demographic and economic variables from nationally or locally recognized
sources,which provide the basis for the projections of demand for air service developed in a subsequent chapter.
TASK 2.3 - PASSENGER DEMAND AND AIR SERVICE ANALYSIS
This chapter provides an overview of passenger trends and air service offered by the airlines operating at the Airport,
tied to the economic and demographic trends identified in the preceding chapter. Ricondo will gather needed
information regarding historical passenger and air service activity from the County, as well as governmental and
private sources. Ricondo will develop assumptions regarding relationship between historical economic and
passenger activity, from which it will derive projections of future passenger and air service activity based on the
projections of economic activity presented in the prior chapter and known changes in the provision of air service by
the airlines serving the Airport. The activity projections derived will be a forecast for financial projection purposes,
which may differ from other existing operational or Master Plan forecasts.
TASK 2.4 - DOCUMENT PREPARATION
Ricondo anticipates the Report will be developed over the course of five drafts. Ricondo will prepare the sections
described in Task 2.2 and 2.3 and will submit to Newton for incorporation into the Feasibility Report. Each draft is
circulated to the financing team, after which an in-person meeting or conference call will be conducted to review
the document and gather feedback. The first draft is estimated to take three months to complete, during which
most of the information gathering and writing takes place. Subsequent drafts will incorporate feedback from the
financing team, as appropriate. The fourth draft is intended to be sent to the rating agencies in anticipation of the
meetings with the rating analysts.A fifth and final draft will contain any additional edits required and will be included
in the preliminary official statement (POS). Unless there is a material change in the pro forma financial forecast
resulting from the pricing of the transaction,this final version is also included in the Final Official Statement. Shifts
in schedule or the transaction, or the information demands of the financing team, may result in the need for
additional drafts. Ricondo will only undertake additional drafts with the understanding and approval of the County.
TASK 3 - DOCUMENT REVIEW MEETINGS
This task will include participation in two phone meetings and three(3)on-site meetings with the financing team to
review the Feasibility Report and discuss questions and comments. Each of the on-site meetings will be attended
by two (2) Ricondo consultants.
TASK 4 - RATING AGENCY PREPARATION AND PARTICIPATION
This task will include preparation of any documentation necessary to prepare for the Rating Agency Meetings and
participation in any conference calls to prepare for meetings. This task also includes Ricondo attendance of and
participation in the Rating Agency Meetings.One Ricondo consultant will be present for this meeting.
TASK 5 - CLOSING DOCUMENTS
This task will include the preparation and execution of any certificates and documents required for closing.
Series 2022 Feasibility Report and Related Services 12 I
Client/I: 1606319 RICONASSOC
ACORD_ CERTIFICATE OF LIABILITY INSURANCE DATE"MmDrYYY'
8/04/2020
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW.THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED
REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER.
IMPORTANT:If the certificate holder Is an ADDITIONAL INSURED,the policy(les)must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED,sulked to the terms and conditions of the policy,certain policies may require an endorsement.A statement on
this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s).
PRODUCER caxrAm Rosalind JaffeHAMS:
USI Insurance Services,LLC PHONE 312 766 2040 FAX
222 5.Riverside Plaza,Suite 900 ENUIL _
ADDRESS: rosallncilaffeausl.com
Chicago,IL 60606 --
312920-9177 INSURER(S)AFFORDING COVERAGE NAM*
INSURER A:Travelers Indemnity Company of CT 25682
INSURED INSURER R:Travelers Property Cat CO.of America 25674
Ricondo&Associates,Inc.
20 North Clark St.,#1500 INSURER C:Charter Oak Fin insurance Company 25615
Chicago,IL 60602 INSURER D:
INSURER E:
INSURER F:
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS.
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LTP TYPE OF INSURANCE ADOL BURR POLICY NUMBER IMraDe'YYYY) IMMADm'YY) LIMITS
A X COMMERCIAL GENERAL LIABIDIY I 6801 H025632 08/01/2020 08/01/2021 EACH OCCURRENCE S1,000,000
B CLAIMS-MADE L XI OCCUR 6804H307641 138/01/2020 08/01/2021 R I FESTg:"oum„Denvl s 1,000,000
C 6801H089603 08/01/2020 08/01/2021 MED EXP(Any one parson) s10,000
B 6604H024167 08/01/2020 08/01/2021 PERSONAL&ADV INJURY S1,000,000
GENL AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE s2,000,000
POLICY JLI JECT LOC I PRODUCTS-COMP/OP AGG S2,000,000
OTHER. $
B AIITOIAOBILE LIABILITY BA0F162914 08/01/202008/01/20211ECOaBIIud:IINGLE LIMIT s1,000,000
X ANY AUTO BODILY INJURY(Per person) Si
OWNED SCHEDULED BODILY INJURY(Per accident) $
AUTOS ONLY AUTOS
NUTO AUT SONEO PROPERTYe DAMAGE
X AUTOS ONLY X Auros ONLY (Per amtlgm) S
S
B X UMBRELLA uaa X OCCUR ZUP51M1152A2ONF 08/01/2020 08/01/2021 EACH OCCURRENCE s17,000,000
EXCESS LIAB CLAIMS-MADE AGGREGATE s17,000,000
DED RETENTIONS S
A WORMERS COMPENSATION UB8K116645 38/01/2020 08/01/2021 X PEP OTH-
ANDEMPLOYERS'IJABILm' Y,R !Yf�I1 C V/f STATUTE FR
OFFFICCER/MEMBER EXCLUDED?
N NIA Ar'f{W IVKMWniI 6911T E.L.EACH ACCIDENT 51,000,00g
IMandNery In NHI E.L.DISEASE-EA EMPLOYEE $1,000,000
DESCRRIPTION OF OPERATIONS below re EL.DISEASE.POLICY LIMIT $1,000,000
GATE 8/26/2020
WNW WAXY
LOCATIONS -
DESCRIPTION OF OPERATIONS I I VEHICLES(ACORD 101,AddlUonal Remmle SMadub,Hey be NY[Md N mon span Is rpuIM)
The General Liability and Automobile Liability policies Include an automatic Additional Insured endorsement
that provides Additional Insured status to Monroe County BOCC and Monroe County only when there Is a
written contract that requires such status,and only with regard to work performed on behalf of the named
insured.Worker's Compensation coverage applies in the State of Florida.
CERTIFICATE HOLDER CANCELLATION
Monroe County BOCCSHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
1100 Simonton St. ACCORDANCE WITH THE POLICY PROVISIONS.
Key West,FL 33040
AUTHORIZEDHES
//
M.S.REPRESENTATIVE
T�`l'
I radar 40 Cief s^1 f
C 1988-2015 ACORD CORPORATION.All rights reserved.
ACORD 25(2016/03) 1 of 1 The ACORD name and logo are registered marks of ACORD
g529527476/M29521465 S7PZP
This page has been left blank intentionally.