Item C05
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: 6/15/05
DIVISION: COUNTY ADMINISTRATOR
BULK ITEM: YES
DEPARTMENT; AIRPORTS
STAFF CONTACT PERSON: Peter Horton
AGENDA ITEM WORDING: Approval of Purchase Service Order with URS for Proposed Terminal Bond Issuance for thE
Key West I nternational Airport.
ITEM BACKGROUND; Scope of Services addresses tasks associated with Bond for construction of a new Terminal
Building at the Key West International Airport.
PREVIOUS RELEVANT BOCC ACTION: Approval to submit Passenger Facility Charge Application # 7,2/19/03,
# 8,10/15/03, #9, 8/1//04, and # 10, 4/20105.
CONTRACT/AGREEMENT CHANGES: New agreement
STAFF RECOMMENDATION; Approval
TOTAL COST; $208,500.00
BUDGETED: Yes
COST TO AIRPORT; None
COST TO PFC: Unknown participation
COST TO COUNTY; None
SOURCE OF FUNDS; Sand, FAA, PFC Revenue
REVENUE PRODUCING: No
AMOUNT PER MONTH !YEAR: N/A
APPROVED BY; County Attorney X
OMS/Purchasing N/A
Risk Management N/ A
~n
AIRPORT DIRECTOR APPROVAL
DOCUMENTATION: Included X
Not Required
AGENDA ITEM #
DISPOSITION:
/bev
APB
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: URS
Effective Date: Execution
Expiration Date; 540 days
Contract Purpose/Description: Proposed Terminal Bond Issuance
Contract Manager: Bevette Moore
(name)
# 5195
(Ext.)
Airports - Stop # 5
(Department! Stop)
for SOCC meeting on: 6/15/05
Agenda Deadline: 5/31/05
CONTRACT COSTS
Total Dollar Value of Contract: 208,500.00
Budgeted? Yes
Grant: FAA pending
County Match: PFC revenue
Current Year Portion: - 50,000.00
Account Codes; pending FAA grant
Estimated Ongoing Costs: nla
(not included in dollar value above)
ADDITIONAL COSTS
For: .
(eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Date In
Changes
Needed
Yes No
Reviewer
Date Out
Airports Director
-.fil lS7~
) ({4
) (
) (
) (
~
Peter Horton
~j2./f;io ~
Risk Management
I
---
/ /
---
O.M.B./Purchasing
I I
---
lor 'sk Management
~fdB. 't}\-/ 041 f3 ("_/__
/.,/( '. ior{ O~'/B~. ;'/1,
. . _ ';"_-~'-"_/ \~/;/ / t "._,
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Cou nt~iAtto-,"-~~L---..
County Attorney
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Comments:
PURCHASE / SERVICE ORDER
FOR
MONROE COUNTY
To: URS
Purchase Service Order No.
04/05-11
Re: PSA Agreement, Dated 1-1-02
Resolution No.
Project Name: Key West Int'l - Proposed Terminal Bond Issuance
Description of Services:
(See attached Scope of Services)
Multiple of Direct Salaries
Lump Sum
x
Reimbursable Expense
Days to Complete 540
Fee this Service Order $ 208,500,00
Payment for Services shall be in their entirety as per PSO,
Prepared by:
Mi~~
Recomm~tt-
Date:
?-r:.- 0 S-
Date:
'5'- (1-0S
Accepted by:
Approved by:
for: ~~fA
Carlos Garci
Date: .//!IJ.(j
6/2005
I
. ~ .~52a.55\POa!\~Joq\~SC-i;4-0S-15.Jo
EXHIBIT A
SCOPE OF SERVICES
Report of the Airport Consultant
Monroe County Airport Revenue Bonds
Key West International Airport
TASK 1. Advise County on formation of Financing Team
We will work as necessary and requested in advising the County on and assisting the County in
engaging the other members of the financing team.
TASK 2. Assemble Relevant Documentation
We will meet with County and Airport staff as necessary to physically define the 2005 Project,
obtain historical information on the City of Key West, Monroe County, the Airport, the Airport's
air and passenger operations, Airport financial operations and collect socioeconomic data
relevant to our study.
TASK 3. Prepare and Assess Economic Profile of Air Service Area
We will determine the core market for air service at the Airport and review significant
demographic and economic characteristics of the area driving demand for such air service ("Air
Service Area") and we will analyze data relevant to said air service demand. This will be key to
the ultimate development of the pro forma projection of cash flows at the Airport necessary to
the test of financial feasibility.
TASK 4. Assess Historical Air Service Demand and Forecast Future Passenger Traffic
We will document the historical market for air service at the Airport by analyzing five years of
passenger traffic and airline operational data at the Airport. We will consider relevant forecasts
for future growth in air traffic and adopt our own forecasts of passenger traffic for the purposes
of the Report. Understanding that the demand for air service at the Airport is driven primarily by
leisure travelers and factors affecting leisure air service demand will be key to this assessment.
TASK 5. Evaluate Airport's Financial Performance
We will obtain and evaluate five years of actual historical Airport financial data and information
and evaluate the extent to which the Airport has generated revenues sufficient to meet or exceed
its annual operating and capital expenses. We will review audited financial statements of the
Airport (as an Enterprise Fund ofthe County) for the last five years and compare significant
financial measures and criteria with those of other comparable airports. An evaluation of the
Airport's historical Passenger Facility Charge ("PFC") collections will be included to identify
correlations of passenger enplanement activity and PFC revenues. We will prepare and publish
in the Report our assessment of the Airport's financial condition and its performance during the
study period.
TASK 6. Analyze Airline Costs at the Airport
We will analyze and document the historical cost per passenger of Airport Operations and
prepare an estimate of the additional airline revenues, if any, that will be required as a result of
the 2005 Project and the Series 2005 Bonds. We will translate future Airport Fees and Charges
into forecasted airline costs per enplaned passenger and compare the results with industry norm~
for comparable airports.
TASK 7. Advise in Tenant Affairs
We will advise the County and Airport Staff on tenant affairs issues with respect to
implementation of the 2005 Project and their occupancy and use of the new terminal building.
Potential key tenants/vendors would include airlines, rental car companies, parking managemen
company, food and beverage operator, etc. Note: Due to the uncertain amount of time and
expense necessary to perfect negotiations with third parties, actual lease/contract development
and negotiations are not covered under this Scope of Services.
TASK 8. Forecast Airport Revenues, Expenses, Cash Flows and Coverage
We will prepare a detailed pro forma forecast of Airport cash flows after the date of beneficial
occupancy (DBO) of the 2005 Project taking into account any existing debt service and debt
service resulting from the Series 2005 Bonds. We will also prepare a pro forma schedule of
future applications of revenue and calculate forecasted debt service coverage pursuant to the rat(
covenant in the Bond Indenture.
TASK 9. Analyze Sensitivity of Results to Changes in Air Traffic at the Airport
Because of the relationship of air traffic levels and PFCs and other revenues at the Airport, we
will consider and report on likely modifications of cash flows and debt service coverage
assuming a reduction of passenger air traffic at the Airport.
TASK 10. Prepare Report olthe Airport Consultant
We will prepare our Report as the Report of the Airport Consultant in a manner suitable for
inclusion in the Official Statement of the County with respect to the Series 2005 Bonds. The
Report will include: (i) introduction; (ii) discussion and description of the Airport, its ownership
and operation as well as its land area and facilities; (iii) discussion and description of the 2005
Project, its costs and phasing; (iv) Funding Plan and Bond Sources and Uses and the resulting
annual and total bond debt service; (v) discussion on the Economic Profile of the Air Service
Area and its potential to continue to support air service at the Airport; (vi) Air Traffic Analysis
which details present and potential future factors which may affect air traffic at the Airport and
the United States; (vii) forecast of future air traffic at the Airport; (viii) forecast of future Airpor
revenues and their sufficiency to pay the expenses of operating the Airport and the debt service
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