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Item J13 J.13 i�` CountCounty ��Monroe. ,y, ? "tr, BOARD OF COUNTY COMMISSIONERS y M T� \�1a� Mayor Michelle Coldiron,District 2 �1 1 nff `_ll Mayor Pro Tem David Rice,District 4 -Ile Florida.Keys Craig Cates,District 1 Eddie Martinez,District 3 w Mike Forster,District 5 County Commission Meeting March 17, 2021 Agenda Item Number: J.13 Agenda Item Summary #7933 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland(305) 809-5200 N/A AGENDA ITEM WORDING: Approval of a Resolution delegating authority to the Director of Airports and approving the use of Key West International Airport Enterprise Revenue Funds to be used for promotional sponsorships. ITEM BACKGROUND: The County desires to establish a positive relationship with the community and Key West International Airport, and promotional sponsorships raise goodwill toward the county by making known the advantages, facilities, resources, products, attractions, and attributes of the Key West International Airport and/or the Florida Keys Marathon International Airport which serve a public purpose. Expenditure thresholds shall be based on the level of anticipated community outreach (community exposure). "Community exposure" shall be defined as the total number of individuals the outreach activity is estimated to reach. The Board hereby authorizes sponsorship expenditures to publicize, advertise, and promote the activities of its airport in the following amounts: Rate of Community Maximum Director Expense Exposure Up to 5,000 people $5,000.00 5,001 to 10,000 people $10,000.00 Greater than 10,000 $19,999.99 PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: n/a STAFF RECOMMENDATION: Approval. Packet Pg. 2343 J.13 DOCUMENTATION: KWIA - Resolution - Sponsorship payment FINANCIAL IMPACT: Effective Date: Upon adoption Expiration Date: In effect until Resolution is rescinded Total Dollar Value of Contract: Total Cost to County: -0- Current Year Portion: Budgeted: yes Source of Funds: Airport Operating Fund 404 CPI: Indirect Costs: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: No Additional Details: REVIEWED BY: Richard Strickland Completed 03/02/2021 4:32 PM Pedro Mercado Completed 03/02/2021 4:33 PM Purchasing Completed 03/02/2021 4:34 PM Budget and Finance Completed 03/02/2021 4:38 PM Maria Slavik Completed 03/02/2021 5:27 PM Liz Yongue Completed 03/02/2021 5:50 PM Board of County Commissioners Pending 03/17/2021 9:00 AM Packet Pg. 2344 J.13.a RESOLUTION NO. —2021 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA DELEGATING AUTHORITY TO THE DIRECTOR OF AIRPORTS AND APPROVING THE USE OF KEY WEST 2 INTERNATIONAL AIRPORT ENTERPRISE REVENUE FUNDS TO BE 0 USED FOR PROMOTIONAL SPONSORSHIPS. WHEREAS, Florida Statute 331.20 grants to the Board of County Commissioners the right,power, and authority to publicize, advertise, and promote the activities of its airport in order r- 0. to make known the advantages, facilities, resources, products, attractions, and attributes of its U) airport; and 0 WHEREAS, the Department of Transportation, Federal Aviation Administration has promulgated the Policies and Procedures Concerning the Use of Airport Revenue in the Federal Register at 64 Fed. Reg. 7696, February 16, 1999, and 2 WHEREAS, the Policies and Procedures Concerning the Use of Airport Revenues lists the permitted uses of airport revenue and includes, among other things, the full costs of activities directed towards promoting public and industry awareness of airport facilities and services; and w WHEREAS, Key West International Airport has sponsored community organizations E and community events from Key West High School to the Naval Air Station Key West Air Show to the Wounded Warrior Ride; and 0 WHEREAS, community involvement and community outreach through paid sponsorships (n 0 0. of community organizations help effectuate the purposes of F.S. 331.20 and promotes and ) engenders goodwill toward the airport and the county; and WHEREAS, the board desires to set forth a policy permitting the use of airport enterprise revenue funds to support community promotional sponsorships; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: E Section 1. The Monroe County BOCC (The Board) desires to establish a positive relationship with the community and Key West International Airport. < Section 2. The Board finds that promotional sponsorships which raise the goodwill toward the county by making known the advantages, facilities, resources, products, attractions, 1 Packet Pg. 2345 J.13.a and attributes of the Key West International Airport and/or the Florida Keys Marathon International Airport serve a public purpose. Section 3. In furtherance of this resolution, the Board incorporates the rationale set forth in the memo attached as Exhibit A as if fully set forth herein. Section 2. The Board hereby delegates to the Director of Airports the authority to publicize, advertise, and promote the activities of its airports; to make known the advantages, facilities,resources,products, attractions, and attributes of its airport;to create a favorable climate e of opinion concerning its airport and to cooperate with other agencies, public and private, to 0 accomplish these purposes. 0 Section 4. Expenditure thresholds shall be based on the level of anticipated 0 community outreach (community exposure). "Community exposure" shall be defined as the total number of individuals the outreach activity is estimated to reach. The Board hereby authorizes 0 sponsorship expenditures to publicize, advertise, and promote the activities of its airport in the following amounts: e( Rate of Community Maximum Director Expense Exposure Up to 5,000 people $5,000.00 5,001 to 10,000 people $10,000.00 Greater than 10,000 $19,999.99 m PASSED AND ACCEPTED by the Board of County Commissioners of Monroe County, 0 Florida, at a meeting of said Board held on the 17th day of March, 2021. 0 Mayor Michelle Coldiron Mayor Pro Tem David Rice Commissioner Craig Cates Commissioner Eddie Martinez Commissioner Mike Forster ' (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FL By By Deputy Clerk Mayor Michelle Coldiron N�OE COUNTY AXTORNEY �A N 0 V7/9 A FORM 2 �V c FED O J. ASS9 M% UNTY ATTORNEY 3/2/21 Packet Pg. 2346 J.13.a EXHIBIT A 41�` L International Airport Key West 3491 South Roosevelt Boulevard Key West,Florida 33040 0 AIRPORT MEMO From: Erick D'Leon,Asst. Director of Airports 0. To: Richard Strickland; Beth Leto 0 Date: October 30, 2020 Re: Airport Promotion and Community Relations Introduction The Key West International Airport is a substantial component of the Key West community and offers _ the island's most significant economic engine with a combined annual economic output totaling$856 million. As the Airport continues to exhibit rapid growth trends in every aspect of its operation, it is m imperative for the Airport to maintain a positive relationship within its small island community.This is accomplished by strategic community outreach efforts to ensure that all citizens are aware of the Airport and express a favorable opinion of the Airport's successful future. Although generally intangible, maintaining a community relationship that promotes a positive airport outlook ensures that the Airport 0 can continue to prosper efficiently and effectively within the physical and sociological limitations of operating on an island. 0 Background 0 The Federal Aviation Administration (FAA) deems that public use airport's expenditure of funds for the 0 promotion of an airport and marketing of airport services are legitimate costs of an airport's operation. Additionally, the FAA entrusts airport management to assure that the level of expenditures for such purposes be reasonable in relation to the airport's specific financial situation. Airport funds may be used to support community activities, or community organizations, if the expenditures are directly and substantially related to the operation of the airport. In addition, the policy provides explicitly that where the amount of the contribution is minimal, the airport operator may consider the "directly and substantially related to air transportation" standard to be met if the contribution has the intangible benefit of enhancing the airport's acceptance in local communities impacted by the airport. Packet Pg. 2347 J.13.a As a point of reference, the Key West International Airport, like many other commercial airports, through a combination of Federal, State, and Airport generated funds, maintains a federally mandated Noise Insulation Program (NIP) for eligible family residences.The NIP has expended substantial funding to lessen the impact, and associated burden, of aircraft noise to single family homes and multi-family condominium facilities in Key West by way of noise insulation efforts.The multi-year program creates a cohesive environment in which the Airport and its numerous operations are an accepted part of the o community's daily function. Community Relations Recently the Airport announced plans to pursue a major capital improvement plan combining millions of dollars in development to completely overhaul the manner in which the Airport operates.The y improvements, developed to meet air service demand, include a new terminal concourse and significant o 0. roadway improvements to streamline and improve the passenger experience. ¢, 0 0. However, as the Airport continues to make significant strides in air service development, which supports _ the community's tourism based economy, the island of Key West is home to only twenty five thousand permanent residents. In a small town community, such as Key West, the importance of a grass roots o effort to establish a positive community relationship cannot be overstated.That relationship is fostered 2 through strategic efforts that focus on hosting community events, public outreach presentations, key marketing efforts, and the encouragement of constant feedback from the community through ad-hoc , committees and other public forums. The Airport has historically selected the neighboring Key West High School Athletics Department as a >- recipient of an annual sponsorship.The sponsorship offers tangible and intangible benefits to the operation of the Airport. While the relationship benefits are intangible, the tangible benefits of hometown marketing are of incredible value to the Airport and a critical focus to all promotional marketing efforts. The local community is vital to the future success of the airport. Utilizing simple marketing efforts such as banner advertisements and other key signage, local event programs and print media, and radio advertisements are all part of a larger effort to continually keep the local community involved with the Airport.Therefore, the participation with local groups such as the Key West High School Athletics Dept., , a local non-profit youth athletics dance association, or a wounded warriors ride, the effort ensures the Airport maintains a positive position within the growth and daily life of the community that supports the Airport's operation. State and Federal Guidance ' As previously stated, the FAA offers clear guidance on how revenues used for promotional/ marketing efforts, and revenues used for donations to charitable/community service organizations are classified as permitted uses.The guidance can be found in Federal Register/Vol. 64, Pgs. 7696-7723, Policy and m Procedures Concerning the Use of Airport Revenue. Additionally, Florida Statute 331.20 empowers the BOCC to expend funds to publicize and promote the airport and its related facilities, and to create a favorable climate of opinion in the interest of promoting and engendering goodwill toward its airport. Packet Pg. 2348 J.13.a Policy Request We request to clarify that promotional, marketing, and community outreach efforts in addition to charitable donations are, as defined by existing state and federal guidelines, part of the Airport's normal operating expenses. Included in those expenses, the Airport will focus on the following categories to pursue effective community relations: Membership: Industry, Economic Development, &Other Associations Partnership: Education, Military, &Other Agencies 0 Sponsorship: Youth Development,Tourism, Economic Development, Government Relations, 0 0. Community, Leadership, Diversity& Inclusion As with all other operational expenses, as these expenses are defined by the FAA, the Airport Director will be provided with the same liberties that are afforded with other aspects of the daily duties associated with the operation of the Airports. However, due to the nature of procurement for event specific memberships, partnerships, or sponsorships, as they may occur, it is not feasible to adhere to standard County procurement policies for multiple price quotes. In these cases, the Airport Director will 0. 0. adhere to the Monroe County Purchasing Policy guidelines for purchasing authority with relation to the purchasing levels for total dollar amount requested. Additionally, as defined by the FAA, airport management will assure to the BOCC that the total amount of expenditures for such purposes would be reasonable in relation to the airport's specific financial �-- situation.The specific level of director approved expenditures will be based on the level of exposure the expense will provide. For example, if the expenditure will offer a small amount of exposure, up to five thousand people, for the airport, the expense will be limited to five thousand dollars. If the expense will 0. offer a medium amount of exposure, five thousand to ten thousand people, the expense will be limited to ten thousand dollars. If the expense is expected to offer the Airport a significant amount of exposure, greater than ten thousand people, such as with major events, partnerships, or marketing campaigns for air service, the expense will be limited to nineteen thousand nine hundred ninety nine dollars and ninety 0. nine cents; see below chart. 0 Rate of Exposure Maximum Director Expense Up to 5,000 people $5,000.00 5,000 to 10,000 people $10,000.00 Greater than 10,000 $19,999.99 Additionally, significant exposure expenses over the Director's procurement authority will abide by the policies and procedures already outlined within the County's purchasing policy,with regard to County Manager approval and/or BOCC approval. Packet Pg. 2349