Item C40 C.40
BOARD OF COUNTY COMMSSIONERS
County of Monroe f ma Mayor Heather Carruthers,District 3
h} ] Mayor Pro Tem Michelle Coldiron,District 2
The Florida Keys Craig Cates,District 1
=E �j David Rice,District 4
`w'P•=w Sylvia J.Murphy,District 5
County Commission Meeting
October 213, 2020
Agenda Item Number: C.40
Agenda Item Summary #7459
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland(305) 809-5200
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AGENDA ITEM WORDING: Approval of Purchase Service Order (PSO) 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 the anticipated issuance
of Series 2022 General Airport Revenue Bonds for the new Concourse A program at the Key West
International Airport
ITEM BACKGROUND: Under the PSO, Newton & Associates will assemble relevant documents,
define the project and project costs to be financed with series 2022 bonds, evaluate airport's
historical financial performance, analyze airline agreements and airlines costs at the airport,
participate in defining of bonds indenture objectives, forecast airport revenues, expenses, cash flows
and coverage and prepare 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.
PREVIOUS RELEVANT BOCC ACTION: On February 15, 2017, the Master Agreement with
Newton & Associates was approved and on February 19, 2020 the master agreement was renewed
for two (2) years.
CONTRACT/AGREEMENT CHANGES:
new PSO
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Newton PSO 2020-10-1 Conc A Feas Report
FINANCIAL IMPACT:
Effective Date: April 1, 2021
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Expiration Date: March 31, 2025
Total Dollar Value of Contract: $275,000
Total Cost to County: -0-
Current Year Portion:
Budgeted: yes
Source of Funds: FDOT grant and/or Airport Operating Fund 404
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required: Yes, under master agreement
Additional Details:
10/21/20 404-63001 - KEY WEST AIRPORT O & M $275,000.00
REVIEWED BY:
Beth Leto Completed 10/05/2020 5:57 PM
Richard Strickland Completed 10/05/2020 6:04 PM
Pedro Mercado Completed 10/05/2020 7:00 PM
Purchasing Completed 10/05/2020 7:03 PM
Budget and Finance Completed 10/06/2020 8:07 AM
Maria Slavik Completed 10/06/2020 8:15 AM
Liz Yongue Completed 10/06/2020 9:31 AM
Board of County Commissioners Pending 10/21/2020 9:00 AM
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C.40.a
PURCHASE/SERVICE ORDER
FOR
MONROE COUNTY, FLORIDA
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Consultant: Newton&Associates Inc_ Purchase/Service Order No. 2020/10 1 �
Re: Financial Consulting;Services Agreement, Dated February_15, 2017
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Project Name: Report of the Airport Consultant_ Key West International Airport Revenue Bonds 0
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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 County's Bond Indenture after N
the issuance of Series 2022 Airport Revenue Bonds("Series 2022 Bands"), in amounts sufficient to pay N
the annual Debt Service on the Series 2022 Bands and make all other deposits required to be made from Cn
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Revenues under the Bond Indenture. Our report will be titled:Report of the Airport Consultant and will
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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. Bands.The body of the Report of the Airport Consultant ,
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will include the following primary sections: (1) Introduction;(ll)The Project; (III) demographic and
Economic Analysis*, (IV) Passenger Fernand and Air Service Analysis; and (V) Financial Analysis.
Report of the Airport Consultant will incorporate and rely upon the Demographic and Economic
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Analysis and Passenger Demand and Air Service Analysis to be performed by Ricondo&Associates. Inc. CL
("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") U
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Compensation:.
Lump Sum Fee: $275,000.00
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Schedule:
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Start Date: April 1, 2021 0
Months to Complete: 48
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Purchase/Service Order No.2020/10-1
Prepared By: Recommended
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Newton&Associates, Inc, Monroe County Department of Airports
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ate® ®� Date:
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(SEAL) BOARD OF COUNTY COMMISSIONERS
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OF R ECOUNTY, FL I A CL
ATTEST: EVI A ,CLERK �
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as Deputy Clerk Mayor/Chairman
Date:
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ASSI NTY ATTORNEY
10/5/20
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Purchase/Service Order No. 22 /1 -1
ATTACHMENTA
SCOPE OF I 0
REPORTCL
OF THE AIRPORT
SERIESI
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MONROE COUNTY I 0
KEY WEST INTERNATIONAL I
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TASK ® Assemble RelevantDocumentation.
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This task will involve meetings with the Airport staff and other appropriate County
representatives in conducting independent research as necessary : (i) Identify the County and 00
the Airport as a departmentthe County; (ii) Identify the physical facilities which comprise the
Airport; (iii) define the passenger concourse improvements o be financed in whole or in part
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with the Series 2022 Bonds (the "Project"); (iv) obtain historical information n Airport
operations and finance relevant to our study; (v) obtain pertinent historical and forecast socio- CU
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economic data for the Air Service Area, the State and the United States ( o be provided
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icon o); (vi) obtain airline industry information and passenger traffic forecast data relevant to
our s (to be provided icon o); and (vii)to obtain and consider other information hich
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is or becomes relevant to our study. We envision multiple meetings in person and via
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teleconference for this task. 0
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TASK 2. Description of the ProjectI i c
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
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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.
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TASK 3. Evaluate Airport's Historical Financial Performance.
We will document the most recent five years of historical Airport revenues and expenses and
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identify historical trends in the Airport's financial activity. We will coordinate with County
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representatives and the Airport Management any questions that are presented during this
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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 CL
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and other revenue brought about COVID-1 . We will prepare report on our assessment of the
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Airport's financial condition and its performance during the most recent five years.
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TASK 4. Analyze Airline Agreements and Airline Costs at the Airport,
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We will analyze the requirements of the Airline Agreement and the Airport Fees and Charges
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payable by the Signatory Airlines at the Airport. We will compile the historical cost per
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enplaned passenger of Airline operations at the Airport and prepare a forecast of Airport Fees r-
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 N
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provided by Airport Management. We will consider such forecasts in the development of our
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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
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forecasts to be prepared by Ricondo in connection with the issuance of the Series 2022 Bonds
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Purchase/Service Order No. 2020/10-1
for the development of our forecasts of passenger related Airport revenues.
TASK.S. Participate in Defining of Bonds indenture Objectives. o
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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
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Bond Indenture, including the pledge of Revenues and the Flaw of Funds for the purposes of
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calculating Debt Service Coverage on the Series 2022 Bands.
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TASK 6. Forecast Airport Revenues, Expenses, Cash Flows and Coverage. CL
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e will prepare a pro forma forecast of Airport revenues and expenses for two years after the
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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. CL
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TASK 7. Prepare Report of the Airport Consultant,
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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 N
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Demand and Air Service Analysis to be performed independently by Ricodo& Associates. Inca
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the in a manner suitable for inclusion in the Official Statement of the County with respect to the
Series 222 Bands.
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Purchase/Service Order No. 2020/10 1
TASK 8. Participate in Financing Working Group Meetings..
We will participate in meetings with the Underwriter, Band Counsel, Underwriter's Counsel, 0
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Financial Advisor, Ricondo and County representative and others members of the finance team
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to discuss and explain the facts, assumptions and analyses supporting our forecasts and
opinion.
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TASK 9. Assist Credit Rating Agencies and Bond Insurance Providers.
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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.
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Deliverable Assumption: The ability of Newton & Associates, Inc.to complete and deliver the CL
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Report of the Airport Consultant as described in this Scope of Services is dependent upon the
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completion of and delivery to the County of the Demographic and Economic Analysis,
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Passenger Demand and Air Service Analysis (including resulting passenger forecasts) to be r-
independently performed by Ricondo.
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It is assumed that the County will issue the Series 2022 Bonds no later than June 30, 2022.
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