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Item K3 K.3 Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS �� Mayor David Rice,District 4 The Florida Keys � Mayor Pro Tem Craig Cates,District I y Michelle Coldiron,District 2 James K.Scholl,District 3 Ij Holly Merrill Raschein,District 5 County Commission Meeting October 19, 2022 Agenda Item Number: K.3 Agenda Item Summary #11124 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland(305) 809-5200 n/a AGENDA ITEM WORDING: Approval to adjust the overnight/max daily rates and weekly rates for the premium covered public parking lot and the public surface lot at the Key West International Airport effective January 1, 2023. The proposed rate change will make EYW's rates more comparable to other South Florida airports and will increase the Airport's non-aeronautical revenue to help support the Airport's efforts to remain self-sufficient and not receive any ad valorem taxpayer funding. ITEM BACKGROUND: Please see attached parking analysis from Reef Parking (Republic Parking)the current parking lot management company for the Key West International Airport. The proposed adjustment will adjust the premium covered public parking lot from $19.00 to $21.00 per day and the weekly rate from $84.00 to $126.00 (one day free) and the public surface public parking lot to $18.00 per day and the weekly rate from $84.00 to $108.00 (one day free). The first hour at the surface lot remains free. PREVIOUS RELEVANT BOCC ACTION: Previous fee adjustments for public parking at the Key West International Airport were approved on July 15, 2009, November 22, 2016, July 19, 2019, and December 8, 2021. CONTRACT/AGREEMENT CHANGES: n/a STAFF RECOMMENDATION: Approval DOCUMENTATION: key west parking rates FINANCIAL IMPACT: Packet Pg. 3269 K.3 Effective Date: January 1, 2023 Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: Yes If yes, amount: Approx. $88,425.00/yr. Grant: County Match: Insurance Required: No Additional Details: REVIEWED BY: Beth Leto Completed 09/19/2022 12:55 PM Richard Strickland Completed 10/04/2022 10:30 AM Pedro Mercado Completed 10/04/2022 11:14 AM Purchasing Completed 10/04/2022 11:17 AM Budget and Finance Completed 10/04/2022 12:11 PM Brian Bradley Completed 10/04/2022 1:29 PM Lindsey Ballard Completed 10/04/2022 2:33 PM Board of County Commissioners Pending 10/19/2022 9:00 AM Packet Pg. 3270 K.3.a REEF August 25, 2022 Mr. Richard Strickland Director of Airports Key West International Airport 3491 S. Roosevelt Blvd. Key West, FL 33040 Dear Richard, as E Assessing parking rates is something every airport must do from time to time.A successful parking rate assessment strategy has two key elements: as 1. Defining a program for how new revenues will be invested. 2. Defining the type and impact of rate changes/options. With inflation rising and little relief insight, costs of supplies and other goods and services are increasing each and every month. In May,the year-over-year increase in consumer prices hit a 40- year high of 8.6 percent. Many expect inflation to remain elevated through 2022 and into 2023. w The areas which revenues can address are the continued increase in costs associated with the U) parking program. Reinvestment into the program both in assets and people allows the airport to maintain and exceed the customers' expectations thus enhancing their overall experience. We believe the parking rates in the premium covered garage could easily be raised to $21 per daily maximum. A $21 overnight rate at Key West International Airport will keep the Airport rates comparable to other airports in south Florida. Additionally, the daily maximum in the surface lot can move to $18. Note this minimal change to each parking product/lot shall adjust the weekly rates as well; weekly surface lot$108.00 and premium covered garage $126.00. as Below you will see the revenue table reflecting the adjustments: E U Premium Key West International Airport Short Term Covered 7 Month Estimated full 1 Surface (Garage) Totals Month Total Gross Revenue 1/1/2022thru 7/31/2022 $ 55,575 $ 384,428 $ 440,003 $ 754,291 Revenue producing transactions-same period 24,355 6,330 30,685 52,603 Average Ticket amount $ 2.28 $ 60.73 $ 14.34 $ 14.34 Overnight rate $ 15.00 $ 19.00 Average length of stay in days 0.15 3.20 Proposed overnight rate $ 18.00 $ 21.00 Extrapolated New Average Ticket amount $ 2.74 $ 67.12 $ 16.02 $ 16.02 Revenue producing transactions 24,355 6,330 30,685 52,603 Extrapolated New Gross Receipts $ 66,690.00 $ 424,894.11 $ 491,584 $ 842,716 Gross Receipts Increase 1 $ 11,115.001 $ 40,466.111 $51,581.111 $ 88,424.75 Republic Centre 633 Chestnut Street,Suite 2000 423.756.2771 Chattanooga,TN 37450 reeftechnology.com Packet Pg. 3271 K.3.a as E U) a as CL I look forward to discussing with you in more detail. In the meantime, please do not hesitate to call me if you have any questions. Sincerely, �-YXA - Daniel Lassiter 3 Senior Vice President Airport Services as E Packet Pg. 3272