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Item M1 ÞÑßÎÜ ÑÚ ÝÑËÒÌÇ ÝÑÓÓ×ÍÍ×ÑÒÛÎÍ ßÙÛÒÜß ×ÌÛÓ ÍËÓÓßÎÇ öÌ×ÓÛ ßÐÐÎÑÈ×ÓßÌÛ ÎÛÏËÛÍÌÛÜö Ó»»¬·²¹ Ü¿¬»æ Ú®·òô Í»°¬»³¾»® îïô îðïî Ü·ª··±²æ ÞÑÝÝ Þ«´µ ×¬»³æ Ç» ÁÁÁÁ Ò± ÈÈ Ü»°¿®¬³»²¬æ Ó¿§±® Ü¿ª·¼ Î·½» Í¬¿ºº Ý±²¬¿½¬ ñÐ¸±²» ýæ Ì¿³¿®¿ Ô¿³¿®½¸»ÐØæ íðë îèçóêððð AGENDA ITEM WORDING: Ð®»»²¬¿¬·±² ±º Ý«¬±³ Ú¿½·´·¬§ °®±¶»½¬ ¿¬ Ó¿®¿¬¸±² ß·®°±®¬ Ì»®³·²¿´ò ß°°®±ª¿´ º±® °®»°¿®¿¬·±² ±º ¿² üèðôððð ¿³»²¼³»²¬ ¬± ¬¸» »¨·¬·²¹ ÓÞ×ñÕîÓ ½±²¬®¿½¬ ¬± °®»°¿®» ¿² ÎÚÐ º±® ½±²¬®«½¬·±² ±º ¿ Ý«¬±³ ú Þ±®¼»® Ð®±¬»½¬·±² º¿½·´·¬§ ¿¬ ¬¸» Ó¿®¿¬¸±² ¿·®°±®¬ò Ì¸» ½±²¬®¿½¬ ©·´´ ¾» º«²¼»¼ ëðû ¾§ »¨·¬·²¹ ÓÌØ ¿½½±«²¬ ¿²¼ ëðû ¾§ »¨·¬·²¹ ÚÜÑÌ ¹®¿²¬ò ITEM BACKGROUND: Ì¸» Ó·¼¼´» Õ»§ ¾«·²» ½±³³«²·¬§ ¸¿ ®»½±¹²·¦»¼ ¬¸¿¬ ¬¸» Ó¿®¿¬¸±² ß·®°±®¬ ¾»·²¹ ¿² ±ºº·½·¿´ º»¼»®¿´ Ð±®¬ ±º Û²¬®§ º±® ·²¬»®²¿¬·±²¿´ ¬®¿ª»´»® · ¿ ½®·¬·½¿´ »½±²±³·½ ·«»ò ß² »½±²±³·½ ¾»²»º·¬ ¬«¼§ ¸¿ ¾»»² ½±³³··±²»¼å ¿²¼ ¿ ¾«·²» °´¿² ¸¿ ¾»»² ¼»ª»´±°»¼ ¾§ ¬¸» °®·³¿®§ ÚÞÑ ¿¬ ¬¸» ¿·®°±®¬ô ©¸·½¸ ©·´´ ½±ª»® ¬¸» ¿²²«¿´ ±°»®¿¬·²¹ ½±¬ ±º ¬¸» Ý«¬±³ ±°»®¿¬·±²ô ©·¬¸ ²± ¿¼¼·¬·±²¿´ ¾«®¼»² ¬± ¬¸» ¬¿¨°¿§»®ò ß¼¼·¬·±²¿´´§ô ¿½½±®¼·²¹ ¬± ¬¸» ¿¬¬¿½¸»¼ ¾«·²» °´¿²ô ¬¸» ÚÞÑ ¸¿ °®±¶»½¬»¼ ¬¸¿¬ ¬¸» »¨°»½¬»¼ ®»ª»²«» º®±³ ¬¸» Ý«¬±³ ±°»®¿¬·±² ½¿² ®»·³¾«®» ¬¸» Ý±«²¬§ ø²±²ó¹®¿²¬÷ °±®¬·±² ±º ¬¸» ½±²¬®«½¬·±² ½±¬ ©·¬¸·² ¬¸» º·®¬ º·ª» §»¿®ò Ñ²½» ¬¸» ÚÞÑ ¸¿ ¾»»² ®»·³¾«®»¼ º±® ¿²§ ±º ·¬ ¸±®¬º¿´´ ½±¬ ·²½«®®»¼ô ®»ª»²«» ¹»²»®¿¬»¼ ·² »¨½» ±º ¿²²«¿´ ±°»®¿¬·²¹ »¨°»²» ©·´´ ¾» ¿ª¿·´¿¾´» º±® ³¿®µ»¬·²¹ ¿²¼ ¹»²»®¿´ ¿·®°±®¬ ¹®±©¬¸ò Ý±«²¬§ ¬¿ºº ¸¿ ©±®µ»¼ ½´±»´§ ©·¬¸ ¬¸» ËòÍò Ý«¬±³ ¬¿ºº ¬± ¿¬·º§ ¬¸»·® »½«®·¬§ ®»¯«·®»³»²¬ ¿²¼ µ»»° ¬¸» ½±²¬®«½¬·±² ½±¬ ¿¬ ¿ ³·²·³«³ò ß ·²¬»®²¿¬·±²¿´ ¾«·²» »¨°¿²¼ô ·¬ · ¿²¬·½·°¿¬»¼ ¬¸¿¬ ¬¸» Ý«¬±³ Ú¿½·´·¬§ ¿¬ ¬¸» Ú´±®·¼¿ Õ»§ Ó¿®¿¬¸±² ß·®°±®¬ ©·´´ »ª»²¬«¿´´§ ¾»½±³» ¿ ²±²óº»» Ý«¬±³ «°°±®¬»¼ ½´»¿®·²¹ º¿½·´·¬§ò PREVIOUS RELEVANT BOCC ACTION: ß¬ ¬¸» Ö«²» ïêô îðïð ÞÑÝÝ ³»»¬·²¹ô ¬¸» Þ±¿®¼ ¿°°®±ª»¼ ¬± ¾»¹·² ¬¸» °®±½» ±º ³¿µ·²¹ ¿ º±®³¿´ ®»¯«»¬ ¬± ¬¸» ËòÍò Ý«¬±³ ú Þ±®¼»® Ð®±¬»½¬·±² º±® ¿ «»®óº»» Ý«¬±³ Ú¿½·´·¬§ ¿¬ ¬¸» Ó¿®¿¬¸±² ß·®°±®¬ò Í»°¬»³¾»® îïô îðïïô ¬¸» Þ±¿®¼ ¿°°®±ª»¼ ¬¸» »¨°»²» ±º «° ¬± üïðôððð º±® °®»´·³·²¿®§ ¼»·¹² º±® Ý«¬±³ ®»ª·»© ¿²¼ º»¿·¾·´·¬§ ½±¬ ¬«¼§ò CONTRACT/AGREEMENTCHANGES: Ì¸» °®±°±»¼ ¿³»²¼³»²¬ ¬± »¨·¬·²¹ »²¹·²»»®·²¹ »®ª·½» ½±²¬®¿½¬ ©·¬¸ ÓÞ×ñÕîÓ · º±® ¬¸» °®»°¿®¿¬·±² ±º ¿² ÎÚÐ ¿²¼ ¾·¼ °»½·º·½¿¬·±² º±® ¬¸» ½±²¬®«½¬·±² ±º ¬¸» Ý«¬±³ Ú¿½·´·¬§ ¿¬ ÓÌØò Ì¸»» º«²¼ ¿®» ½«®®»²¬´§ ¿ª¿·´¿¾´» ·² ¬¸» ÓÌØ ¿½½±«²¬ ¿²¼ ·² »¨·¬·²¹ ÚÜÑÌ ¹®¿²¬ º±® ¬¸» ¿·®°±®¬ò __________________________________________________________________________________ STAFF RECOMMENDATIONS: ÚÜÑÌ ¸¿ ½±²º·®³»¼ ¬¸¿¬ ëðû ±º ¬¸» °®±¶»½¬ ½±¬ô ±® üëéëôððð ·² ¹®¿²¬ º«²¼ ©·´´ ¾» ¿ª¿·´¿¾´» ¾§ Ò±ª»³¾»® îðïîò Ñ¬¸»® °±¬»²¬·¿´ ±«®½» ±º ß·®°±®¬ º«²¼ô «¾¶»½¬ ¬± Úßß ¿°°®±ª¿´ ø¿²²«¿´ ¿°°´·½¿¬·±² º±® º«²¼·²¹ ¾»·²¹ °®»°¿®»¼ ²±© ¬± ·²½´«¼» ¬¸» Ý«¬±³ Ú¿½·´·¬§ °®±¶»½¬÷æ üïëðôððð ±º ß×Ð º«²¼ ©·´´ ¾» ¿ª¿·´¿¾´» º±® Ó¿®¿¬¸±² ²»¨¬ §»¿® ¾§ ß«¹«¬ îðïíô ¿²¼ ÐÚÝ øÐ¿»²¹»® Ú¿½·´·¬§ Ý¸¿®¹»÷ º«²¼ ©·´´ ¾» ¿ª¿·´¿¾´» ¾§ ²»¨¬ Ö«²» ±º îðïí ¿º¬»® ¬¸» ÕÉ×ß ¾±²¼ ¿®» °¿·¼ ±ººò Ì¸» ®»³¿·²·²¹ ¾¿´¿²½» ±º üìîëôððð ©·´´ »²½«³¾»® ¿°°®±¨·³¿¬»´§ º±«® ³±²¬¸ô ±® ±²»ó ¬¸·®¼ ±º ¬¸» ¿²²«¿´ ÐÚÝ ®»ª»²«»ô ©¸·½¸ ½±´´»½¬ ¿°°®±¨·³¿¬»´§ üïòí ³·´´·±² ¿²²«¿´´§ò ×² «³³¿®§ô ¿¬ °®»»²¬ °®±¶»½¬·±²ô ëðû ±º ½±²¬®«½¬·±² ½±¬ ©·´´ ¾» ½±ª»®»¼ ¾§ ÚÜÑÌ ¹®¿²¬ º«²¼ô ¿²¼ ëðû ³¿§ ½±³» º®±³ ß·®°±®¬ º«²¼·²¹ô «°±² ¿°°®±ª¿´ º®±³ ¬¸» Úßßô ©·¬¸ ²± ·³°¿½¬ ¬± ¬¸» Ù»²»®¿´ º«²¼ ±® ¿¼ ª¿´±®«³ ¬¿¨»ò ÌÑÌßÔ ÝÑÍÌæ üèðôððð ÎÚÐ ñü üïòïë Ó·´´·±² ½±²¬®«½¬·±² ×ÒÜ×ÎÛÝÌ ÝÑÍÌæ ÁÁÁÁÁÁÁÁÁÁÁÁÁ ÞËÜÙÛÌÛÜæ Ç» Ò± È ÝÑÍÌ ÌÑ ÝÑËÒÌÇæ üð º®±³ Ù»²»®¿´ Ú«²¼ ÍÑËÎÝÛ ÑÚ ÚËÒÜÍæ ÎÚÐæ ëðû ÓÌØ ¿½½±«²¬ ú ëðû ÚÜÑÌ »¨·¬·²¹ ¹®¿²¬ º±® ¿·®°±®¬ò Ý«¬±³ Ú¿½·´·¬§æ ÚÜÑÌ Ù®¿²¬ üëéëôððð ¾§ Ò±ª»³¾»® ±º îðïîå ß×Ð º«²¼ º±® üïëðôððð ¾§ ß«¹«¬ îðïíå ÐÚÝ º«²¼ ¬± ½±ª»® ¾¿´¿²½» ±º üìîëôððð ¿ª¿·´¿¾´» ¾§ Ö«²» ±º îðïí ¿º¬»® ÕÉ×ß ¾±²¼ ¿®» °¿·¼ ±ººò ÎÛÊÛÒËÛ ÐÎÑÜËÝ×ÒÙæ Ç» Ò± ÁÁÁ ßÓÑËÒÌ ÐÛÎ ÓÑÒÌØ Ç»¿® ÁÁÁÁ ßÐÐÎÑÊÛÜ ÞÇæ Ý±«²¬§ ß¬¬§ ÁÁÁ ÑÓÞñÐ«®½¸¿·²¹ Î·µ Ó¿²¿¹»³»²¬ ÁÁÁÁ ÜÑÝËÓÛÒÌßÌ×ÑÒæ ×²½´«¼»¼ ÈÈ Ò±¬ Î»¯«·®»¼ÁÁÁÁ Ü×ÍÐÑÍ×Ì×ÑÒæ ßÙÛÒÜß ×ÌÛÓ ý August 27, 2012 Monroe County 1100 Simonton Street Room 2-216 Key West, Florida 33040 Attn: Jerry Barnett, Director of Facilities Development - sent via email to Barnett-Jerry@MonroeCounty-FL.gov Re: MARATHON CUSTOMS TERMINAL –PHASE I FEASIBILITY STUDY MARATHON AIRPORT, 9400 OVERSEAS HIGHWAY PROJECT NARRATIVE WITH COST ESTIMATE Dear Jerry, The following cost estimate and revised concept plandated August 27, 2012is in response to our various meetings in connection with the Marathon Customs Terminal Phase I Feasibility Study and conceptual plan approval from the Department of Homeland Security, dated July 5, 2012 with additional information provided August 8, 2012. The design is based on the U.S. Customs and Border Protection Airport Technical Design Standards 2011, as directed by the Department of Homeland Security, and the various meetings with Monroe County, the City of Marathon, and the Department of Homeland Security. While this plan addresses all the items identified within the standards, our experience with the Department of Homeland Security identifies that additional design revisions may occur during the development of the project. These revisions may increase or decrease the cost of the project The preliminary costs used for the new Marathon GAFarebased on assumptions relating to square footage, local construction cost averages, soft costs, and acceptable contingencies.This amount is inclusiveof soft costs such as design fees, reimbursable expenses, permitting, etc. Special Note: Evaluations of the preliminary estimate of the Cost of the Work prepared by the Architect represent the Architect’s judgment as a design professional familiar with the construction industry. It is recognized, however, that neither the Architect nor the Owner has control over the cost of labor, materials or equipment, over the Contractor’s methods of determining bid prices, or over competitive bidding, market or negotiating conditions.Accordingly, the Architect cannot and does not warrant or represent that bids or negotiated prices will not vary from any estimate of the Cost of the Work or evaluation prepared or agreed to by the Architect. MARATHON CUSTOMS TERMINAL -PHASE I FEASIBILITY SPECIFICATION DIVISION NUMBERQUANTITYMEASUREMENT UNIT COST TOTAL DIVISION 2 -EXISTING CONDITIONS (DEMOLITION) Interior Demolition2,000.00SF$ 5.00 $ 10,000.00 Exterior Demolition800.00SF$ 5.00 $ 4,000.00 DIVISION 03 -CONCRETE CMU Wall Infill118SF$ 18.00 $ 2,124.00 DIVISION 06 -WOOD, PLASTICS, AND COMPOSITES Rough Carpentry1ALLOWANCE $ 5,000.00 $ 5,000.00 Cabinetry -Base58LF $ 200.00 $ 11,600.00 Cabinetry -Wall27LF $ 175.00 $ 4,725.00 Countertop139SF $ 35.00 $ 4,865.00 Storage Shelving -Adjustable and Melamine41LF $ 75.00 $ 3,075.00 DIVISION 07 -THERMAL AND MOISTURE PROTECTION Building Sealant1ALLOWANCE$ 500.00 $ 500.00 Firestopping1ALLOWANCE$ 1,500.00 $ 1,500.00 Metal Roofing Repair (for HVAC / Plumbing 1ALLOWANCE $ 5,000.00 $ 5,000.00 DIVISION 08 -OPENINGS Interior Doors -Standard Frames and Hardware 1EA$ 2,500.00 $ 2,500.00 - Glass Interior Doors -Detention Grade Frames and 1EA$ 3,000.00 $ 3,000.00 Hardware - Glass Interior Doors -Standard Frames and Hardware 6EA$ 1,000.00 $ 6,000.00 - Solid Interior Doors -Detention Grade Frames and5EA$ 1,500.00 $ 7,500.00 Hardware - Solid Interior Doors -BallisticResistant Frames and 2EA$ 4,000.00 $ 8,000.00 Hardware Exterior Doors -Detention Grade Frames and 2EA$ 2,500.00 $ 5,000.00 Hardware Interior Window -BallisticResistant Transaction 1EA$ 5,000.00 $ 5,000.00 (Will include drawer and speak through) Interior Window -BallisticResistant Fixed4EA$ 2,500.00 $ 10,000.00 Interior Sidelight -Detention Grade3EA$ 1,250.00 $ 3,750.00 Exterior Door -Door to remain -new hardware3EA$ 500.00 $ 1,500.00 DIVISION 09 -FINISHES Wall Type 1 -Standard Metal Stud99LF$ 45.00 $ 4,455.00 Wall Type 2 -Detention Grade182LF $ 90.00 $ 16,380.00 Wall Type 3 –Ballistic Resistant46LF$ 325.00 $ 14,950.00 Wall Type 4 -Storefront60LF$ 50.00 $ 3,000.00 Ceiling Type 1 -Existing -Vaulted2166SF$ 2.00 $ 4,332.00 Ceiling Type 2 -BallisticResistant262SF$ 325.00 $ 81,150.00 Ceiling Type 3 -Detention Grade Existing 185SF$ 90.00 $ 16,650.00 HVAC Ceiling Type 4 -Detention Grade New HVAC339SF$ 90.00 $ 30,510.00 Ceiling Type 5 -Suspended Acoustical Tile839SF$ 5.00 $4,195.00 Ceiling Type 6 -SuspendedGypsum150SF $ 4.50 $ 675.00 Floor Type 7 -Terrazzo Existing2613SF $ 2.00 $ 5,226.00 Floor Type 8 -Ceramic Tile1328SF $ 8.00 $ 10,624.00 Interior Painting -Doors and Frames20EA$ 100.00 $ 2,000.00 Interior Painting -Ceiling1328SF $ 2.00 $ 2,656.00 Interior Painting -Walls9924SF $ 2.00 $ 19,848.00 Stucco118SF $ 12.00 $ 1,416.00 DIVISION 10 -SPECIALTIES Detention Toilet Accessories -1EA$ 575.00 $ 575.00 Mirror/Soap/Paper Towel/Garbage Commercial Toilet Accessories -2EA$ 475.00 $ 950.00 Mirror/Soap/Paper Towel/Garbage Grab Bars -Standard 4EA$ 200.00 $ 800.00 Grab Bars -Detention2EA$ 300.00 $ 600.00 Search Room -Bench (Stainless Steel 1EA$ 500.00 $ 500.00 w/handcuff rings) Search Room -Bag Exam table (36x60x30 1EA$ 500.00 $ 500.00 Stainless Steel) Search Room -Counter (24X18X42 Stainless 1EA$ 500.00 $ 500.00 Steel) Interview Room -Table (36x30x30)1EA$ 500.00 $ 500.00 Interview Room -Chairs 3EA$ 200.00 $ 600.00 Break Room -Table (2-48X48)2EA$ 350.00 $ 700.00 Break Room -Chairs (8)8EA$ 200.00 $ 1,600.00 Break Room -Lockers (12 Full Height)12EA$ 150.00 $ 1,800.00 Waiting -Chairs(37)37EA$ 150.00 $ 5,500.00 Waiting -Tables (5)5EA$ 150.00 $ 750.00 Waiting -Forms Processing counter (48x18)1EA$ 500.00 $ 500.00 Workstation -Chairs (6)6EA$ 250.00 $ 1,500.00 Holding Cell Privacy Screen1EA$ 800.00 $ 800.00 Holding Cell Bench1EA$ 500.00 $ 500.00 Metal Detector Equipment1EA$ 7,000.00 $ 7,000.00 Defib Equipment Cabinet1EA$ 1,500.00 $ 1,500.00 First Aide Cabinet1EA$ 500.00 $ 500.00 Bag Scan Equipment1EA$ 30,000.00 $ 30,000.00 InteriorSignage1ALLOWANCE$ 800.00 $ 800.00 Microwave1EA$ 250.00 $ 250.00 Undercounter Refrigerator1EA$ 500.00 $ 500.00 Undercounter Freezer1EA$ 500.00 $ 500.00 DIVISION 21 -FIRE PROTECTION 1ALLOWANCE $ 25,000.00 $ 25,000.00 DIVISION 22 -PLUMBING 1ALLOWANCE $ 50,000.00 $ 50,000.00 DIVISION 23 -MECHANICAL 1ALLOWANCE $ 100,000.00 $ 100,000.00 DIVISION 26 -ELECTRICAL 1ALLOWANCE $ 80,000.00 $ 75,000.00 DIVISION 27 -TECHNOLOGY 1ALLOWANCE $ 125,000.00 $ 120,000.00 Computer Allowance from DHS1EA$ 90,000.00 $ 90,000.00 DIVISION 28 -ELECTRONIC SAFETY AND SECURITY 1ALLOWANCE $ 50,000.00 $ 50,000.00 DIVISION 32 -EXTERIOR IMPROVEMENTS Concrete Walkway684SF $ 5.25 $ 3,591.00 Concrete ADA Ramp60SF $ 5.25 $ 315.00 Subtotal$ 900,887.00 SOFT COSTS General Conditions3%$ 27,026.61 Contingency10%$ 90,088.70 CEI5%$ 45,044.35 A/E Fees1ALLOWANCE $ 80,000.00 $ 80,000.00 Permitting Fees1ALLOWANCE $ 5,000.00 $ 5,000.00 Reimbursable Expenses1ALLOWANCE $ 5,000.00 $ 5,000.00 TOTAL CONSTRUCTION ESTIMATE$ 1,153,046.66 In summary, the project inclusive of design, engineering, permitting, and construction is estimated to cost $1,153,046.66based on the concept plan and assumptions made.Once a design has been refined and approved by U.S. Customs and Border Protectionand upon direction from the County, a more detailed and accurate cost estimate can be preparedto refine the associated costs with the project. This will include an in-depth existing conditions analysis to review and verify all existing mechanical, plumbing, electrical, and fire protectionsystems. At this preliminary concept phase with an unknown construction start date, assumptions have been made to create a worst case estimate for project budgeting purposes. We trust that the provided information is sufficient to make the necessary decisions to move the project forward; however please do not hesitate to contact us should you have any questions. Upon your direction,we will provide a detailed proposal for the Phase II services, which include construction documents for permit and construction based on the required scope of work. Best Regards, Anthony D. Sarno, R.A., NCARB Project Manager DRAFT(8-5-12) CUSTOMS PROPOSAL FOR MIDDLE KEYS AIRPORT Over the last few years we have been engaged in defining the need for and the means to establish Customs and Immigration for both boating and aircraft in the Middle Keys. This paper intends to define the means; that isoffer an approach that reasonably ensuresnet benefit to the County, City, service providersand the tourist industryin the Middle Keys. While these benefits are described as direct dollar revenues and expense offsets, the inference for growth and development in a broader though indirect sense is far more important to the future of Monroe County. CAPITAL EXPENSES Current estimates for tenant improvements at the Middle Keys Airport mainterminal are currently expected to be approximately $1,150,000. While the final cost will become increasingly precise as the designand construction is completed, the number will almost certainly fall within this estimate plus or minus 10%. As anexpense, the investment in terminal infrastructure may be accounted as abalance sheet asset on the booksof the County.Some percentage of the total cost will be offset by grantsand private contributions, the remaining unfunded amount will be held on the County’s books.The objective is to repay the County’s airport fundfor tenant improvements as the Customs ‘operating account’ is able. ANNUAL ORDINARY EXPENSES Customs & Immigration Agents -Homeland Security has provided information on annual expenses covering personnel and non capital equipment. Based on these numbers, each full time equivalent inspector will cost $161,000, comprised of salary expense, other personnel expenses and technology. Based on projected volume in the first6 months, we will require 1-2 full time officers, growing to 2-3 by the end of the first year and as many as fourat the maximum possible volume based on current overflights.This is highly dependent on actual volume. Handlers -Key to the success of the Customs initiative will be personnel who are tasked with expediting all servicesforeach arriving and departing aircraft. Their job will include verifying Customs and Immigration paperwork, baggage handling consistent with Customs regulations, collecting fees, coordinating fuelings, catering and other ancillary services atthe point of Clearance.Located at the terminal adjacent to Customs, the handlers’objective will be to ensure an average 30 minute turnaround for each arrival and departure. We will require two full time handlers operating separate shifts 7 days a week,12 hours a day and expanding to 3 as volume increases. The projected initial cost is estimated to be $60,000 per handler.The expense will be paid by the FBOand management will be absorbedinto current MJC management personnel. ANNUAL INDIRECT EXPENSES Marketing -Recently, our understanding of the international market has underscored the importance of service and ease of access with respect to developing a successful Customs and Immigration facility. While we have a firm understanding of market size, we will require a directed effort to attract aircraft to a new facility and provide quick and efficient services including fueling, catering, clearance and baggage handling. Advertising -Print, internet and contacts withprofessional flight planners, individual flight departments andindustry events will be coordinated and executed. Our estimate of first year expenses will be $150K for marketing personnel, creation of ads, placement and coordinating marketing with various local businesses including the hotel industry, vacation rentals, realtors and the restaurant industry. This expense will be born by the FBO’swith some expectation that DAC and TDC in combination with various tourist businesses will include notice of the new capability in all advertising. Insurance -Liability insurance will be maintained by the FBO’s as an extension of existing policies for ramp and fueling operations including product liability. Insurance covering the terminal facility will continue under the existing County policiesand practices. Increases in ramp liability and product liability insurance expense will be paid by the FBO’s. DIRECT INCOME As a ‘user fee’ designated facility, each aircraft that clears inbound from out of country will be assessed a fee for the clearingservice. Ourincome analysis (see attached Exhibit A, Table C) assumed $225 for each Jet aircraft and $30for each piston aircraft as a clearing fee. This user fee rate is similar to other user fee airports.For purposes of this proposal we chose not to include flowage to the County related topiston aircraft. These fees were relatively insignificant and complicatethe income analysis. EXPENSE OFFSET APPROACH The benefits to the Middle Keys community will be significant and represents a valuable initiative affectingMiddle Keys tourism and related businesses and workforce,as well as the FBO’s providing the direct services. Ideally,expenses should be offset by those public and private entities benefiting from the initiative. The indirect nature of manyof these benefits makes attribution difficult.Clearly both The Middle Keysand County as a whole will improve tax-based revenues consistent with increased tourism, housing prices, and property transfers,as well as a growing economy resulting from the development of an international destination resort competency that Customs enables. Additionally, private airport businesses including FBO’s and other enterprises providing direct and indirect services will benefit. The FBO will contribute $.10 per gallon increased flowage fee for into plane fueling on the Customs rampin addition to the $.06 paid the county for flowage per gallon, $150,000 in startup marketing expenses, up to $180,000 for handlers, undefined costs for increased liability insurance and management of non Customs personnel. Monroe County will provide funding for tenant improvements to the terminal of approximately $475,000direct payment for Customs agents. Incidental cost for utilities, cleaning and other expenses related to the terminal facilityare current expenses and not included. All County incrementalexpenses would be offset by fees and contributions from the ongoing Customs facility. The City of Marathonand the Middle Keyswill assist the Customs enterprise by soliciting upfront contributions from local businesses and, to the extent feasible, direct contributions as benefits materialize. ROPOSAL P Marathon Jet Center will be tasked with managing collectionsfor all ordinary fees and flowage related to the ongoing Customs facility. ACustoms or airport ‘operating account’will be set up to collect income from operations. Any year end residual balance in the accountwill offset the initial costrequired to completetenant improvements required by Homeland Security.Customs and Immigration personnel and direct expenses will be paid bythe County though the amount will be repaid through the Customs ‘operating account’managed by the County.The extent to which there is a cash flow shortfall at the end of the calendar year, the County willbe made whole by the FBO. The account will be subject to standard County audit and the FBO will be responsible for the efficacy of collections and deposits. Monroe Countywill contributesupport and expertise unique to County governance as well as upfront funding for tenant improvements. The Cityand the Middle Keyswill endeavor to raise $100,000to fund an expected first year shortfallfromthosepublic and private sources that will benefit from the Customs facility. At some point within the first 5 years it is reasonable to assume the County’s airport fundwill be reimbursed for the entire cost of tenant improvements. After that time, the Customs ‘operating account’ will begin to accumulate excess funds over and above direct expenses. These funds will be, first, applied to any previouslyaccumulated annual shortfall funded by the FBO. Once the FBO has been made whole, funds will be available for marketing andgeneral airport growth and development. As the international business expands, it is anticipated that Customs at the Florida Keys Marathon Airport will expand and become a non-fee clearing facility. Bill Ehrhorn General Manager, Marathon Jet Center.