Item O10BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 17, 2007
Bulk Item: Yes XX No
Division: County Attorney
Staff Contact Person: Pedro Mercado
AGENDA ITEM WORDING:
Approval to terminate the Revenue Guaranty Agreement with Delta Airlines.
ITEM BACKGROUND:
In an attempt to establish regularly scheduled commercial airline service at the Florida Keys Marathon
Airport (FKMAP), the County entered into a Revenue Guaranty Agreement with Delta Airlines. In
exchange for providing regularly scheduled service during the revenue guaranty period, Delta was
guaranteed a minimum revenue of $5,100.00 per flight during the revenue guaranty period. If the
passenger revenue during the guaranty period exceeded the minimum revenue during the period, then
no payment would be due to Delta; however, if the passenger revenue was less than the minimum
revenue, then Delta would be entitled to a Guaranty payment in an amount not to exceed $500,000. The
revenue guaranty period was to run through Nov. 17, 2007; however, on July 13, 2007 Delta informed
the County of its intent to suspend all service or, in other words, terminate service to Florida Keys
Marathon Airport effective September 6, 2007. The County had originally employed the services of
Mike Mooney from The Boyd Group to attract Delta to Marathon and again used his services,
immediately following the July 13'h letter, in an attempt to come up with an alternative that would have
continued Delta's service at Marathon. When that failed, in August 2007 the County wrote a letter to
Delta informing them that suspension of service could constitute a breach of the agreement and
requested that Delta meet and confer with the County in order to come up with a solution. Delta has not
responded to the County's August 2007 letter and has terminated service at FKMAP.
PREVIOUS RELEVANT BOCC ACTION:
Approved the Revenue Guaranty Agreement at the June 19, 2006 BOCC meeting.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
APPROVAL
TOTAL COST: N/A BUDGETED: Yes No
COST TO COUNTY:N/A SOURCE OF FUNDS:
REVENUE PRODUCING: Yes No XX AMOUNT PER MONTH
APPROVED BY: County Atty OMB/Purchasing Risk Management
DOCUMENTATION: Included
Not Required XX_
DISPOSITION: AGENDA ITEM #