PSO2020/10-1 KWIA Revenue Bonds =a4'�WblZ:
:�.°w '', Kevin Madok, CPA
m 1 Clerk of the Circuit Court&Comptroller—Monroe County, Florida
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DATE: October 30, 2020
TO: Beth Leto,Airports
Business Manager//ff�
FROM: Pamela G. Hanna.
SUBJECT: October 2r BOCC Meeting
Attached is an electronic copy of die following item for your handling.
C40 Purchase Service Order (PS()) 2020/10-1 with Newton&Associates, Inc. in the
amount of$275,000. Newton&Associates, in collaboration with Ricondo&Associates,will
develop a Feasibility Report in conjunction with die anticipated issuance of Series 2022 General
Airport Revenue Bonds for the new Concourse A program at die Key West International Airport.
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,Florida 33070 Plantation Key,Florida 33070
305-294-4641 305-289-6027 305-852-7145 305-852-7145
PURCHASE/SERVICE ORDER
FOR
MONROE COUNTY,FLORIDA
Consultant Newton&Associates, Inc. Purchase/Service Order No. 2020/10-1
Re: Financial Consulting Services Agreement,Dated February 15,2017
Project Name: Report of the Airport Consultant—Key West International Airport Revenue Bonds
Description of Services:Services will include the independent assessment,opinion and report on: (i)the
forecasted ability of the Airport to generate Revenue,as defined in the Countys Bond Indenture after
the issuance of Series 2022 Airport Revenue Bonds("Series 2022 Bonds'),in amounts sufficient to pay
the annual Debt Service on the Series 2022 Bonds and make all other deposits required to be made from
Revenues under the Bond Indenture.Our report will be titled:Report of the Airport Consultant and will
be prepared in a manner suitable for inclusion in the Official Statement to be issued by the County in
connection with the issuance of its Series 2022 Bonds.The body of the Report of the Airport Consultant
will include the following primary sections:(I)Introduction;(II)The Project;(III)demographic and
Economic Analysis*;(IV)Passenger Demand and Air Service Analysis*;and(V)Financial Analysis.
*Report of the Airport Consultant will incorporate and rely upon the Demographic and Economic
Analysis and Passenger Demand and Air Service Analysis to be performed by Ricondo&Associates. Inc.
("Ricondo")in connection with the County's issuance in connection with the issuance of the Series 2022
Bonds and delivered to the County pursuant to a separate agreement and purchase/service order.
(See Attachment A—"Scope of Services")
Compensation:
Lump Sum Fee: $275,000.00
Schedule:
Start Date: April 1,2021
Months to Complete: 48
Purchase/Service Order No.2020/10-1
Prepared By: Recommen d By:
Newton&Associates,Inc. Monroe County Departmentn of Airports
Date: /0/S/ZO ZO Date: Ivlc,L3o
•
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, LORIDA
ATTEST:
KKE�VINMAADOK,,CLERK
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By V`"""'7.- ' -" By
as Deputy Clerk Mayor/Chairman
Date: lw( n 2-1, zo u
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AS ATTORNEY
Date 10/5/20
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Purchase/Service Order No.2020/10-1
ATTACHMENT A
SCOPE OF SERVICES
REPORT OF THE AIRPORT CONSULTANT
SERIES 2022 AIRPORT REVENUE BONDS
MONROE COUNTY FLORIDA
KEY WEST INTERNATIONAL AIRPORT
TASK 1. Assemble Relevant Documentation.
This task will involve meetings with the Airport staff and other appropriate County
representatives in conducting independent research as necessary to: (I) Identify the County and
the Airport as a department of the County; (li) Identify the physical facilities which comprise the
Airport; (iii)define the passenger concourse improvements to be financed in whole or in part
with the Series 2022 Bonds (the "Project"); (iv)obtain historical information on Airport
operations and finance relevant to our study; (v)obtain pertinent historical and forecast socio-
economic data for the Air Service Area,the State and the United States(to be provided by
Ricondo); (vi)obtain airline industry Information and passenger traffic forecast data relevant to
our study(to be provided by Ricondo);and (vii)to obtain and consider other information which
is or becomes relevant to our study.We envision multiple meetings in person and via
teleconference for this task.
TASK 2. Description of the Project and Plan of Finance
In this task we will document the define the physical aspects of the Project to be financed with
proceeds of the series 2022 Bonds.This task will also identify the cost of the Project and the
3
Purchase/Service Order No.2020/10-1
sources of funding for the Project,which are expected to include federal and state grant funds,
passenger facility charge funds and proceeds of the Series 2022 Bonds.
TASK 3. Evaluate Airport's Historical Financial Performance.
We will document the most recent five years of historical Airport revenues and expenses and
identify historical trends in the Airport's financial activity. We will coordinate with County
representatives and the Airport Management any questions that are presented during this
review. In our review we will also consider,to the degree possible with existing historical data,
the recent impact on Airport airline,food/beverage and retail concessions, parking, rental car
and other revenue brought about COVID-19. We will prepare report on our assessment of the
Airport's financial condition and its performance during the most recent five years.
TASK4._ Analyze Airline Agreements and Airline Costs at the Airport.
We will analyze the requirements of the Airline Agreement and the Airport Fees and Charges
payable by the Signatory Airlines at the Airport.We will compile the historical cost per
enplaned passenger of Airline operations at the Airport and prepare a forecast of Airport Fees
and Charges including the impacts that will be generated as result of the Project.We will
examine and evaluate the reasonableness of the forecasts of airline revenues generated by
Rates, Fees and Charges and the forecasts of Operating, Maintenance and Repair Expenses
provided by Airport Management. We will consider such forecasts in the development of our
Forecast Airport Revenues, Expenses, and debt service coverage on the Series 2022 Bonds as
required by the Bond Indenture.We will also rely upon the Demographic and Economic
Analysis and Passenger Demand and Air Service Analysis and the resulting passenger activity
forecasts to be prepared by Ricondo in connection with the issuance of the Series 2022 Bonds
4
Purchase/Service Order No.2020/10-1
for the development of our forecasts of passenger related Airport revenues.
TASK 5. Participate in Defining of Bonds Indenture Objectives.
We will participate in meetings with the County, Airport Management, Bond Counsel, Financial
Advisors, Underwriter, and others in defining of key objectives to be included in the drafting of
Bond Indenture, including the pledge of Revenues and the Flow of Funds for the purposes of
calculating Debt Service Coverage on the Series 2022 Bonds.
TASK 6. Forecast Airport Revenues, Expenses,Cash Flows and Coverage.
We will prepare a pro forma forecast of Airport revenues and expenses for two years after the
date of beneficial occupancy("DBO")of the Project, considering debt service estimated to
result from the Series 2022 Bonds.This pro forma will include a forecast of application of
Revenue under the Bond Indenture and debt service coverage on the Series 2022 Bonds.
TASK 7. Prepare Report of the Airport Consultant.
We will prepare a narrative of our analyses and state our opinion as to financial feasibility of
the County issuing the Series 2022 Bonds and include same in the Report of the Airport
Consultant(which will incorporate the Demographic and Economic Analysis and Passenger
Demand and Air Service Analysis to be performed independently by Ricondo&Associates. Inc.)
the in a manner suitable for inclusion in the Official Statement of the County with respect to the
Series 2022 Bonds.
5
Purchase/Service Order No. 2020/10-1
TASK 8. Participate in Financing Working Group Meetings.
We will participate in meetings with the Underwriter, Bond Counsel, Underwriter's Counsel,
Financial Advisor, Ricondo and County representative and others members of the finance team
to discuss and explain the facts,assumptions and analyses supporting our forecasts and
opinion.
TASK 9. Assist Credit Rating Agencies and Bond insurance Providers.
Upon request we will meet with and assist the finance team with the preparation and
development of presentations to credit rating agencies as required.This task will also include
the preparation for and presentations to the County on the plan of finance.
Deliverable Assumption: The ability of Newton &Associates, Inc.to complete and deliver the
Report of the Airport Consultant as described in this Scope of Services is dependent upon the
completion of and delivery to the County of the Demographic and Economic Analysis,
Passenger Demand and Air Service Analysis(including resulting passenger forecasts)to be
independently performed by Ricondo.
It is assumed that the County will issue the Series 2022 Bonds no later than June 30, 2022.
6
A�te CERTIFICATE OF LIABILITY INSURANCE DATE
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09/23/2020
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CERTIFICATE HOLDEN CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLCIES BE CANCELLED BEFORE
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Monroe County BOCC ACCORDANCE WITH THE POLICY PROVISIONS
1100 Simonton St. Avmowao RLTNcesxarnE
Key West FL 33040 Oil
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ACORD 25(2018103) The ACORD name and logo are registered marks of ACORD
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