22-20-C-00-EYW 07/11/2022 FINAL AGENCY DECISION
Monroe County
Key West, Florida
Application number 22-20-C-00-EYW to impose a passenger facility charge
(PFC) at the Key West International Airport (EYW) for use at EYW.
In accordance with §158.29 of Title 14, Code of Federal Regulations, Part 1581, this
Final Agency Decision includes all appropriate determinations to approve or
disapprove, in whole or in part, imposition of a PFC at EYW and use of PFC revenue
on two projects at EYW.
Procedural History (Dates)
Air carrier consultation meeting: March 24, 2022
Public notice posted: March 18, 2002
Federal Aviation Administration (FAA) application receipt: May 2, 2022
FAA finding that the application is substantially complete: May 17, 2022.
PFC Level, Amount, and Charge Effective Date
Level of PFC: $4.50
Total approved net PFC revenue
in this decision: $ 106,264,696
Earliest charge effective date: August 1, 2024
August 1, 2024 is the "earliest" charge effective date and is based upon the
estimated charge expiration date for the previously approved collections in
application 22-19-C-00-EYW, as amended2. If Monroe County (County) changes
the charge expiration date for the previous application, the charge effective date
for this application will also change, so that the County can continue to collect the
authorized amount of PFC revenue without a cessation in collections. Section
158.43(c) contains information regarding notification to air carriers and foreign air
carriers of the charge effective date and changes to the charge expiration date.
In establishing its charge effective date, the public agency must comply with
§158.43(b)(3), which states, in part, that the charge effective date will be the first
day of a month which is at least 30 days from the date the public agency notifies
the carriers of approval to impose the PFC.
1 Elsewhere in this document 14 CFR Part 158 may be referred to in abbreviated form as
"Section 158.xx"or"§ 158.xx".
2 Pursuant to Title 14 CFR§ 158.3: "charge effective date" means the date on which air carriers
are obliged to begin collection of a PFC; "charge expiration date" means the date on which air
carriers are to cease collecting a PFC.
2
Duration of Authority to Impose a PFC
The County is authorized to impose a PFC at EYW until the date on which the
total net PFC revenue collected plus interest thereon equals the allowable cost of
the approved projects, or the charge expiration date is reached, whichever
comes first. Based on information submitted by the County, the FAA estimates
the charge expiration date for this decision to be February 1, 2057. Should the
amount of PFC revenue collected for this application ever exceed the allowable
costs for all approved projects in this application, the public agency's authority to
impose a PFC for this application ceases. If the public agency's authority to
impose a PFC ceases, the public agency must, without delay, submit a plan
acceptable to the FAA describing the use of accumulated PFC revenue to insure
that it complies with applicable law. If the plan is not acceptable to the FAA, the
excess PFCs may be offset by the airport's loss of Airport Improvement Program
(AIP) grant funds. See §158.39(d).
Cumulative PFC Authority Including Current Decision
DECISION SUMMARY TABLE
Application Approved for Approved for
Number Collection Use
92-01-C-00-EYW $945,937 $945,937
92-01-C-01-EYW (4,228) (4,228)
94-02-C-00-EYW 1,110,333 1,110,333
94-02-C-01-EYW 162,525 162,525
94-02-C-02-EYW (292,284) (292,284)
97-03-C-00-EYW 1,860,000 1,860,000
97-03-C-01-EYW (100,000) (100,000)
97-03-C-02-EYW 125,000 125,000
97-03-C-03-EYW (446,837) (446,837)
99-04-C-00-EYW 946,503 946,503
99-04-C-01-EYW 650,000 650,000
99-04-C-02-EYW (251,600) (251,600)
01-05-C-00-EYW 1,631,431 1,631,431
01-05-C-01-EYW (588,500) (588,500)
01-05-C-02-EYW (191,872) (191,872)
02-06-C-00-EYW 263,000 263,000
02-06-C-01-EYW (5,446) (5,446)
3
04-07-C-00-EYW 1,420,700 1,420,700
04-07-C-01-EYW (1,199,421) (1,199,421)
04-08-C-00-EYW 425,250 360,250
04-08-C-01-EYW (65,000) 0
04-08-C-02-EYW (93,216) (93,216)
05-09-C-00-EYW 361,645 205,395
05-09-C-01-EYW (156,611) (361)
05-10-C-00-EYW 48,810,445 450,000
05-10-C-01-EYW (80,000) (80,000)
05-10-C-02-EYW (50,000) (50,000)
05-10-C-03-EYW (201,000) (201,000)
05-10-C-04-EYW (3,682,593) 0
06-11-C-00-EYW 80,000 48,440,445
06-11-C-0 1-EYW 0 (36,477,934)
06-11-C-02-EYW 46,547 46,547
06-11-C-03-EYW 0 (48,313,898)
07-12-C-00-EYW 111,216 111,216
07-12-C-01-EYW (63,010) (63,010)
10-14-C-00-EYW 877,692 877,692
10-14-C-01-EYW (103,651) (103,651)
15-15-C-00-EYW 2,828,506 2,828,506
15-15-C-01-EYW (1,125,785) (1,125,785)
16-16-C-00-EYW 1,207,633 1,207,633
16-16-C-01-EYW (33,986) (33,986)
18-17-C-00-EYW 6,528,329 6,528,329
18-17-C-01-EYW (138,876) (138,876)
19-18-C-00-EYW 8,491,093 8,491,093
19-18-C-01-EYW 438,975 438,975
22-19-C-00-EYW 2,748,200 2,748,200
22-20-C-00-EYW 106,264,696 106,264,696
Total $142,983,806 $142,983,806
4
Project Approval Determinations
For each project approved in this Final Agency Decision, and for the application
as a whole, the FAA, based on its expertise with the PFC program and airport
development, exercises its judgment and finds that the application and record
thereof contained substantial evidence to support the following determinations:
• The amount and duration of the PFC will not result in revenue that exceeds
the amount necessary to finance the specific projectE
• Each approved project meets at least one of the objectives set forth in
§158.15(a); is eligible in accordance with §158.15(b) (as set forth in the
individual project determinations); and is adequately justified in accordance
with §158.15(c) and paragraph 4-8 of FAA Order 5500.1, Passenger Facility
Charge (August 9, 2001).
• For those surface transportation or terminal projects approved for collection at
a PFC level above $3, the requirements of§158.17(a)(3) have been met. For
each such project approved in this Final Agency Decision, the FAA has
determined that the public agency has made adequate provisions for
financing the airside needs at the airport including runways, taxiways, aprons,
and aircraft gates.
• All project-related requirements pertaining to the airport layout plan and
airspace studies have been met. Environmental requirements
(§158.29(b)(1)(iv)) are discussed under a separate heading below.
• The collection process, including a request by the public agency not to require
a class or classes of carrier to collect PFC, is reasonable, not arbitrary,
nondiscriminatory, and otherwise in compliance with the law.
• The public agency has not been found to be in violation of§9304(e) or §9307
of the Airport Noise and Capacity Act (ANCA) of 1990 (since codified at 49
U.S.C. 47524 and 47526).
• The total approved net PFC revenue includes debt service and financing
costs of PFC approved projects. Any PFC revenue collected in excess of
debt servicing requirements shall be used for approved projects or retirement
of outstanding PFC-financing costs.
5
Projects Approved for Authority to Impose the PFC at EYW and Use the
PFC Revenue at EYW at a $4.50 Level
Approved
Description: Amount
01. EYW Concourse A - Construction
Pay-as-You-Go $0
Bond capital $45,540,506
Financing and Interest $60,676,007
Total $106,216,513
This project consists of the construction of new Concourse A and renovations to
the existing airside and landside terminal buildings to address existing passenger
processing facility deficiencies and improve the passenger experience at the Key
West International Airport (EYW).
New Concourse A
The new concourse A is a proposed second-level concourse of 48,805 square
feet to be located immediately north of the existing Airside Terminal Building. The
new concourse will be accessed from the second-level Landside Terminal
Building by extending the existing enclosed pedestrian bridge. The second level
building will accommodate seven gates all fitted with passenger boarding
bridges, 17,568 square feet of holdroom areas, 10,272 square feet of passenger
circulation, 12,634 square feet of concession areas, 4,240 square feet of
restrooms, a 145 square foot nursing room, a 110 square foot pet relief area, and
4,397 square of building support areas, which includes mechanical rooms,
IT/Communication rooms, an electrical room, an elevator, a storage room, a
janitor's closet, and stair areas. The ground (apron) level below the new
concourse building will be unenclosed and will support a new baggage make-up
area and device, tug lanes, airline ramp space, ramp equipment storage and
circulation space. Each aircraft gate will include a passenger boarding bridge
and will be assigned to any airline who meets the Preferential Use Gate
Utilization Targets identified in Article 4 of EYW's Airline Agreement.
Airside Terminal Building Renovations
Approximately 15,000 square feet of the existing Airside Terminal Building will be
renovated, including the relocation of the holdrooms and concession areas to the
new concourse building. Renovations will expand the arrivals hall within the
building footprint to allow for the expansion of the baggage claim area to improve
operational efficiency and passenger level of service. The two existing baggage
claim devices will be supplemented with a new third device to accommodate
existing demand, and as demand increases in the future, the two existing devices
would be replaced with newer, more efficient units. Baggage service offices will
be provided and the rental car facility within the arrivals hall will be renovated and
expanded by about 400 square feet. Finally, the airline ramp level support offices
will be centralized and expanded to meet airline space needs. The Airside
6
Terminal Building renovation areas include 4,029 square feet of airline and ramp
support offices, a 497 square foot delivery checkpoint, 1,496 square feet of rental
car office and support space, and 8,330 square feet of baggage claim public
space.
Landside Terminal Building Renovations
Approximately 10,300 square feet of the existing Landside Terminal Building will
be reconfigured and renovated to accommodate an expanded security screening
checkpoint totaling 7,382 square feet, with space for four screening lanes and
2,979 square feet of office space. To support the expanded security screening
checkpoint, the existing concessions area, consisting of the Conch Flyer
restaurant and gift shop, will be relocated to the new concourse building.
The new concourse and renovations to the existing terminal provide airport
passengers with much needed improvements to address current space
deficiencies and improve the passenger experience.
Determination:
Approved for collection and use.
PFC objective: This project constructs a new concourse and reconfigures both
the airside and landside terminals to accommodate current and future passenger
demand. It will improve the passenger experience by adding contact gates and
addressing deficiencies in the passenger processing facilities. Thus, this project
meets the PFC objective of preserving the capacity of the national transportation
system.
Basis for eligibility: This project is generally eligible per paragraph N-3 and
Tables N-1 through N-5 of FAA Order 5100.38D, AIP Handbook, Change 1
(February 26, 2019), and §158.15(b)(6) "gates and related areas". However,
portions of Concourse A and the existing Airside and Landside terminal areas are
not PFC-eligible per Table C-2. In addition, in accordance with Appendix I, the
portions of the reconstructed apron beneath the new Concourse A that are used
for airline operations and ramp equipment storage are not PFC-eligible.
The County conducted an eligibility analysis of the project and determined that
68.4 percent of the New Concourse A, 55.4 percent of the existing Airside
Terminal Building renovations, and 4.4 percent of the existing Lanside Terminal
Building renovations are PFC eligible. The FAA concurs with the County's
eligibility determinations. The FAA also concurs with the County's calculations of
the resulting PFC-eligible project costs.
Adequate justification: The FAA finds that the construction of new Concourse
A and the renovations to the existing airside and Iandside terminals will preserve
the capacity of the EYW terminal. In addition, they will allow for near term
passenger growth by expediting the movement of passengers and baggage
throughout the facility. From 2015 to 2019, passenger enplanements at EYW
increased by 37 percent, from 354,252 to 486,139 annual enplaned passengers.
This growth exceeded the 2015 Airport Master Plan forecast for the year 2028.
Studies following the Master Plan, including the 2021 Environmental
Assessment, forecasted that EYW would need to accommodate 650,000 annual
enplaned passengers in 2024, and 750,000 annual enplaned passengers by
2029. Further, the 2021 Concourse A Justification analysis identified the need
for improvements to address space deficiencies in the Airside and Landside
terminal buildings to accommodate the projected passenger levels. These areas
include the security screening checkpoint, holdrooms, baggage claim, baggage
makeup areas, and concessions areas. In addition, the existing practice of
ground-loading and unloading of aircraft negatively impacts operational
efficiency. Passenger Boarding Bridges will provide a more efficient means of
boarding and deplaning aircraft, and will provide a better experience for
passengers. The improvements included in this project are expected to
accommodate 650,000 annual enplaned passengers at an acceptable level of
service in accordance with International Air Transportation Association (IATA)
standards.
The FAA further finds that the requested PFC amount is based on a mixture of
engineering estimates and financing costs that appear reasonable for this type of
project. Therefore, based on the documentation provided by the City and the
FAA's review based upon FAA's experience with airport development projects,
the FAA concludes that this project is adequately justified for those components
approved.
Estimated total project cost: $146,816,513
Proposed sources of financing: PFC revenue ($106,216,513 — the amount
requested by the County), anticipated AIP entitlement funds ($5,600,000), and a
State Grant ($35,000,000).
Approved
Description: Amount
6. PFC Administrative Costs $48,183
This project includes fees for professional consulting services provided to
Monroe County in conjunction with the development, coordination and filing of
this PFC Application.
Determinations:
Approved for collection and use.
8
PFC objective: Airport development projects resulting from this project may
preserve the capacity of EYW. Thus, this project meets the PFC objective of
preserving the capacity of the national air transportation system.
Basis for eligibility: PFC eligible in accordance with §158.3, definition of
"allowable cost".
Adequate justification: The FAA finds that this project is necessary for the
airport to administer this PFC application and that airport development projects
that result from this application will maintain and/or improve the capacity of EYW.
The FAA further finds that the requested PFC amount is based on a negotiated
fee that appears reasonable for this type of project. Therefore, based on the
documentation provided by the Monroe County and the FAA's review based
upon FAA's experience with PFC administrative costs, the FAA concludes that
this project is adequately justified.
Estimated total project cost: $48,183
Proposed sources of financing: PFC revenue ($48,183 — the amount
requested by the Monroe Counry).
Environmental Requirements
The project approved in this application for concurrent authority to impose and
use the PFC was examined under the guidelines contained in FAA Order
1050.1 F, Environmental Impacts: Policies and Procedures. The project was
determined to be categorically excluded from the requirement for formal
environmental review. There appear to be no extraordinary circumstances
requiring further review.
Request Not to Require a Class or Classes of Carriers to Collect PFC's.
Monroe County requests that the following class of air carriers be excluded from
the requirement to collect PFC's: All air taxi/commercial operators (ATCO) filing
FAA Form 1800-31 and operating at EYW.
Determination: Approved. Based on information contained in the County's
application, the FAA has determined that the proposed class accounts for less
than one percent of EYW's total annual enplanements. The County should
confirm, on an annual basis using prior year enplanement data, that the
approved class does not exceed one percent of the total enplanements at EYW.
9
Compliance with the Airport Noise and Capacity Act of 1990 (ANCA)
The FAA is not aware of any proposal at EYW that would be found to be in
violation of the ANCA. The FAA herein provides notice to Monroe County that a
restriction on the operation of aircraft at EYW must comply with all applicable
provisions of the ANCA and that failure to comply with the ANCA and Part 161
makes Monroe County subject to provisions of Subpart F of that Part. Subpart F,
"Failure to Comply With This Part," describes the procedures to terminate
eligibility for AIP funds and authority to collect PFC revenues.
Compliance with Subsection 47107(b) Governing Use of Airport Revenue
As of the date of this approval, Monroe County has not been found to be in
violation of 49 U.S.C. 47107(b) or in violation of grant assurances made under
49 U.S.C. 47107(b).
Air Carrier Consultation and Public Notice Comments
Monroe County did not receive any comments during the air carrier consultation
process or as a result of the public notice inviting comment on this application.
Legal Authority
This decision is made under the authority of 49 U.S.C. 46110 and 40117, as
amended. This decision constitutes a final order to approve, in whole or in part,
Monroe County's application to impose a PFC at EYW and use PFC revenue on
two (2) projects at EYW. Any party to this proceeding having a substantial
interest may appeal this decision to the courts of appeals for the United States or
the United States Court of Appeals for the District of Columbia upon petition, filed
within 60 days after issuance of this decision.
Digitally signed by
STEVEN E
E HICKS
HICKS Date:0 022.07.11 10:51:44
Concur
Director, Southern Region Date
Airports Division
Nonconcur
Director, Southern Region Date
Airports Division