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Item C01BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY MEETING DATE: 5116/07 DIVISION: COUNTY ADMINISTRATOR BULK ITEM: YES DEPARTMENT: AIRPORTS STAFF CONTACT PERSON: Peter Horton Phone: 292-3518 AGENDA ITEM WORDING: Approval of Fiscal Year 2007 Rates and Charges for the Key West International Airport, to become effective May 1, 2007. ITEM BACKGROUND: Newton & Associates has updated the Rates and Charges for the Key West International Airport as an integral part of the Airports budget process, as required by the Bond Resolution in connection with issuance of the Series 2006 Variable Rate Revenue Bonds. PREVIOUS RELEVANT BOCC ACTION: Approval of bond resolution authorizing issuance of Monroe County, Florida Airport Variable Rate Revenue Bonds, series 2006, June 21, 2006. CONTRACT/AGREEMENT CHANGES: New Rates & Charges STAFF RECOMMENDATION: Approval TOTAL COST: n/a BUDGETED: n/a COST TO AIRPORT: n/a COST TO PFC: n/a COST TO COUNTY: SOURCE OF FUNDS: n/a REVENUE PRODUCING: adjusts airport rates AMOUNT PER MONTH NEAR: APPROVED BY: County Attorney n/a OMB/Purchasing n/a Risk Management n/a DOCUMENTATION: Included X Not Required AGENDA ITEM # DISPOSITION: /bev AO 11 /06 bloc & Associalps, lac. AVIATION INDUSTRY CONSU_TANTS April 25, 2007 VIA EXPRESS DELIVERY Ms. Bevette Moore Airport Operations Key West International Airport 3491 S. Roosevelt Boulevard Key West, Florida 33040 Re: FY 2007 Airline Rates and Charges Key West International Airport Dear Ms. Moore: Enclosed is a copy of the Fiscal Year 2007 Airline Rates and Charges ("FY 2007 Rates & Charges") for the Key West International Airport ("Airport"). The FY 2007 Rates & Charges have been calculated based on the Airport's budget for Fiscal Year 2007 and in consideration of the covenants of the Bond Resolution adopted by the County in connection with its issuance of the Series 2006 Variable Rate Revenue Bonds. As depicted in the FY 2007 Rates & Charges, the average terminal rental rate will be increased to $56.34 per square foot from $39.83 calculated in Budget Fiscal Year 2006. This increase is primarily attributable to increases in Airport security expenses and the expiration of security grants received by the County from the Florida Department of Transportation in Fiscal Year 2007. The airline landing fee rate is budgeted to decrease to $2.25 from $2.34 calculated in Budget Fiscal Year 2006. The FY 2007 Rates & Charges were provided to the airlines serving the Airport on March 26, 2007 and a meeting with the airlines was held at the Airport on April 13, 2007 to discuss the rates and charges and to give the airlines an opportunity to comment and provide input. Based on the calculation of the FY 2007 Rates & Charges, the average airline cost per enplaned passenger will increase from $5.53 in Budget Fiscal Year 2006 to $5.91 in Fiscal Year 2007. However, we believe that this airline cost per enplaned passenger remains within industry averages for airports of similar size. Please don't hesitate to call if you have any questions. We sincerely appreciate the opportunity to assist you. Sincerely, In'0,110, 1,L Michael D. Hill, Jr. Senior Consultant Enclosure cc: Peter Norton — Key West International Airport Frank C. Newton III - Newton & Associates, Inc. 1806 ROCKY RIVER ROAD 0 CHARLOTTE, NORTH CAROLINA 2B213 • (704) 597-4384 • FAx (704) 597-4385 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SUMMARY: Airline Terminal Rentals: Total Terminal Requirement (Less Checkpoint Security Reimbursements) Net Terminal Requirement Airline Terminal Revenue Requirement Airline Terminal Space Required Average Rental Rate per Square Ft. Airline Landing Fees: Total Airfield Requirement (Less: G.A. Revenues) Airline Landing Fee Revenue Required Estimated Airline Landing Weight (1,000 lb. units) Estimated Passenger Airline Landed Weight Passenger Airline Landing Fee Revenue Airline Landing Fee Rate Requirement Secuity Checkpoint Reimbursement Charges: Checkpoint Security Requirement Estimated Annual Enplanements Checkpoint Security Fee per Enplanement Budget Final Budget FY 2006 FY 2006 FY 2007 1,290, 970 1,454, 069 1,618,571 (259,980) (229,426) (268,820) 1,030,990 1,224,43 1,349,751 568,098 630,626 695,050 14,262 12,337 12,337 $39.83 $61.12 $66.34 $915, 898 (134,291) 781,607 333,329 328,701 $770,754 $2.34 $974,161 $918,346 (134,291) (140,076) 839,870 778,270 333,329 346,626 328,701 338,580 $828,208 $760,204 $2.52 $2.25 259,980 259,980 268,820 327,347 288,875 291,764 $0.79 $0.90 $0.92 Estimated Passenger Airline Revenue $1 698,832 Cost Per Airline Enplaned Passenger $4.63 (Terminal Rent and Landing Fees) Cost Per Airline Enplaned Passenger $5.63 (Terminal Rent, Landing Fees and TSA Reimbursement Costs) $1,718,815 $1,724,074 $6.05 $4.99 $5.95 $5.91 Percentage Change Budget 06 - Budget 07 25.4% 3.4% 30.9% 22.3% -13.5% 41.4% 0.3% 4.3% •0.4% 4.0% 3.0% -1.4% -4.2% 3.4% -10.9% 16.0% 7.8% 7.6% 6.8% Newton & Associates,lnc. Page 1 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE A: Airport Operating & Maintenance Expenses (Page 1) - Budget Comparison 510120 510140 530310 530316 530318 530340 530410 530440 530440 530450 530451 530498 530510 530520 530521 530523 530528 530540 590910 530400 530409 530460 530470 530480 530490 Personal Services Administrative Custodial Maintenance Engineering Security ARFF Other Overtime Adjustment Total Personal Services Annual % Change (Bud over Act) Annual % Change (Bud over Bud) Contractual Services Professional Services Medical Services Legal Services Other Contractual Services Phone & Postage/Freight Security Services Less Operating Security Grants Utility Services Rentals & Leases Insurance Risk Management Charges Advertising Total Contractual Services Annual % Change (Bud over Act) Annual % Change (Bud over Bud) Supplies & Materials Office Supplies Operating Supplies Gasoline Diesel Fuel Internal Fuel Books, Pubs, Subs, Educ, Mem Total Supplies & Materials Annual % Change (Bud over Act) Annual % Change (Bud over Bud) General County Overhead Allocation Travel & Per Diem Vehicle Maintenance Charges Repairs and Maintenance Printing and Binding Promotional Activities Miscellaneous Expenses Total General Annual % Change (Bud over Act) Annual % Change (Bud over Bud) TOTAL O&M EXPENSE Annual % Change (Bud over Act) Annual % Change (Bud over Bud) Minor Capital Outlays Vehicles Equipment (Contingency) Other Subtotal Minor Capital Outlays & Contingency ADJ. TOTAL O&M EXPENSE Number of Enplaned Passengers Total O&M Cost Per Enplaned Passenger Note: CPI Rate 3.40% Nawbn 8 Pu�xlN�,lnc. FY 06 FY 06 FY 07 Budget I Final Bud et $220,792 $252,269 $304,316 0 $0 0 137,928 $157,592 223.581 0 $0 0 0 $0 0 800,709 $914.861 656,265 25,298 $28,905 26,073 20,000 $58,303 0 1,204,727 $1,411,930 $1,210,235 -14.3% 0.5% $5,000 $9,429 $5,000 2,475 1,818 2,475 0 0 0 412,657 317.192 441,872 24,289 37,994 25,018 1,337,070 1,660,295 1,748,980 (682,500) (937,025) (839,490) 244,557 325,749 297,600 5,821 8,807 7,821 38,200 49,284 38,200 30,596 38,264 42,659 1,000 0 1,000 $1,419,165 $1,511,807 $1,771,335 17.2% 24.8% $6,802 $10,662 $7,006 76,995 89,639 79,305 300 104 300 500 0 500 1,806 5.269 1,860 9,543 10,713 8,929 $95,946 _ $116,287 $97,900 -15.8% 2.0% $126,485 $209,815 $170,000 25,095 18,882 25,847 8,300 12,751 13,879 62,161 109,144 122,161 1,000 51 1,000 0 0 0 500 660 500 $223,541 $351,303 $333,387 -5.1 % 49.1% $2,943,379 $3,391,328 $3,412,857 0.6% 16.0 % $184,674 $2,954 $20,900 $0 $184.674 0 0 0 184,674 2,954 205,574 $3,128,053 $3,394,282 $3,618,431 327,347 288,875 291,764 $9.56 $11.75 $12.40 Page 2a T C C Ua O (D N F„ C LL Q t G1 LL n L L C 7 S O ( V D O O N r [ LrL O t LL < y D a m G O O N O O O N O O O N O O O N O O V (D N O) M (A N m FA N (D 6% N V1 N M O (O r N r p p m co m Cl) CDO O m (DIN (n r 04 N CD 64 IA 60 N m Y N N coN coN CND (NO a m cO m m Vk (A < ro v Cl! v N v N N O) r n r r ao a v v v w (a (S en M OOCl) (nr V0 N V V O Or r h CD Cn T r CO (D CD M O CO CO O cl N Cn r (n N V V V) 04 0 CD O) (') V N O O N V r m r C7 r V, I-- Ci n O IT r N Cl) O r r m U7 N M A O C C) CO V) V' MN (D V! 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C'1 O_ N N N N tq UO EA EA 69 64 N U (D m 7 U C N 0 C C D1 O C a) c m o U o W > U Q rn r_ a C d O w a� L ' ( m m L° 3 �a U o d Q m m :3 c rn 0 � c N ` N U ua►i t t ca J w a -1 O O w LD LL f0 .d CD N O O O � i a a� rn U � U Z O o N N U C LO N N � � m C O N f0 O L Q CL O O C ~ o 7 O O UO U O C _ CO C L _ O N CO �2 N CO L C C 0 Q O ~ 0 O 0 0 0 0 0 a ono -� O N p CO O - m -v N U U 0) } O N (0 U- m m Q O U N �o 00 N m 0) U a y LL N XLU C CD n a y C X wa m C m CO > O c a in U _3 W X U KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE A: Airport Operating & Maintenance Expenses IPaae 21 - Budget Allocations Personal Services Administrative $304,316 $152,158 $76,079 $30,432 $45,647 Maintenance 223,581 89,432 44,716 22,368 67,074 Engineering 0 0 0 0 0 ARFF 656,265 82,033 426,572 65,627 82,033 Other 26,073 3,650 13,558 5,215 3,650 Overtime 0 0 0 0 0 Adjustments 0 0 0 0 0 Total Personal Services $1,210,235 $327,274 $560,925 $123,631 $198,405 Contractual Services Professional Services $5,000 $3,000 $500 $750 $750 Medical Services 2,475 1,485 248 371 371 Legal Services 0 0 0 0 0 Other Contractual Services 441,872 165,723 83,459 527 192,163 Phone & Postage/Freight 25,018 15,011 2,502 3,753 3,753 Security Services 1,748,980 1,311,735 174,898 87,449 174,898 Less Operating Security Grants (839,490) (629,617) (83,949) (41,974) (83,949) Utility Services' 297,800 172,407 30,531 8,504 86,358 Rentals & Leases 7,821 4,693 782 1,173 1,173 Insurance 38,200 22,920 3,820 0 11,460 Risk Management Charges 42,659 29,861 0 0 12,798 Advertising 1,000 600 100 150 160 Total Contractual Services $1,771,335 $1,097,817 $212,891 $60,703 $399,925 Supplies & Materials Office Supplies 7,006 $4,204 $701 $1,051 $1,051 Operating Supplies 79,305 47,583 7,931 11,896 11,896 Gasoline 300 180 30 45 45 Diesel Fuel 500 300 50 75 75 Internal Fuel 1,860 1,116 186 279 279 Books, Pubs, Subs, Educ, Mem 8,929 5,357 893 1,339 1,339 Total Supplies & Materials $97,900 $58,740 $9.790 $14,685 $14,685 General County Overhead Allocation 170.000 $42,500 $42,500 $42,500 $42,500 Travel & Per Diem 25,847 6,462 6,462 6,462 6,462 Vehicle Maintenance Charges 13,879 3,470 3,470 3,470 3,470 Repairs and Maintenance 122,161 30,540 30,540 30,540 30,540 Printing and Binding 1,000 250 250 250 250 Promotions 0 0 0 0 0 Miscellaneous Expenses 500 125 125 125 125 Total General $333,387 $83,347 $83,347 $83,347 $83,347 TOTAL O&M EXPENSE $3,412,857 $1,567,177 $866,953 $262,365 $696,362 Minor Capital Outlays/Contingency $205,574 $51,394 $51,394 $51,394 $51,394 Subtotal $3,618,431 $1,618,571 $918,346 $333,759 $747,755 Checkpoint Security Direct Bill (268,820) (268,820) n/a n/a n/a ADJ. TOTAL O&M EXPENSE $3.349,611 $1,349,751 $918,346 $333,759 $747,755 Allocated Share of Total Expense 100%, 40% 27% 10% 22% N-ton & As.«iar.s,inc. Page 3 KEY WEST AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE A: Airport Operating & Maintenance Expenses (Page 3) - Budget Allocation Percentages - - - - Cost Center Allocation - - - - General Other Terminal Airfield Aviation Leased Total Personal Services Administrative 50% 25% 10% 15% 100% Maintenance 40% 20% 10% 3D% 100% Engineering 80% 10% 5% 5% 100% ARFF 12.5% 65% 10% 12.5% 100% Other 14 % 52% 20% 14% 100% Overtime 27% 43% 13 % 17% 100% Adjustment 25% 25% 25% 25% 100% Weighted Average Contractual Services Professional Services Medical Services Legal Services Other Contractual Services Phone & Postage/Freight Security Services Less Operating Security Grants Utility Services Rentals & Leases Insurance Risk Management Charges Advertising Weighted Average 27%46% 101/6 161/. 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 60% 10% 15% 15% 100% 38% 19% 0% 43% 100% 60% 10% 15% 15% 100% 75% 10% 5% 10% 100% 75% 10% 5% 10% 100% 58% 10% 3% 29% 100% 60% 10% 15% 15% 100% 60% 10% 0% 30 % 100% 70% 0% 0% 30% 100% 60% 10% 15% 15% 100% 62% 12% 3% 23% 100% Supplies & Materials Office Supplies 60% 10% 15% 15% 100% Operating Supplies 60% 10% 15% 15% 100% Gasoline 60% 10% 15% 15% 100% Diesel Fuel 60% 10% 15% 15% 100% Internal Fuel 60% 10% 15% 15% 100% Books, Pubs, Subs, Educ, Mem 600/ 100A 15% 15% 100% Weighted Average 600/ 10% 15% 15% 100% General County Overhead Allocation 25% 25% 25% 25% 100% Travel & Per Diem 25% 25% 25% 25% 100% Vehicle Maintenance Charges 25% 25% 25% 25% 100% Repairs and Maintenance 25% 25% 25% 25% 100% Printing and Binding 25% 25% 25% 25% 100% Promotions 25% 25% 25% 25% 100% Miscellaneous Expenses 25% 251/6 25% 25% 100% Weighted Average 25% 25% 25%6 25% 100% Minor Capital Outlays/Contingency 25% 253/6 25 % 251/6 100% Total O&M Weighted Average 401/6 27% 100/ 22% 100% Newton & A:ociat.a ioa Page 4 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE A: Airport Operating & Maintenance Expenses IPaae 41 - FY 07 Payroll by Function Functic Position FTE Existing New Hire Total ------ Cost Center Allocation ------ General Terminal Airfield Aviation Other Leased Administration: Director of Airports 1.00 $120,644 $0 $120,644 $60,322 $30,161 $12,064 $18,097 Sr Administrator Airport Business 0.85 74,003 0 74,003 37,002 18,501 7,400 11,100 Sr. Coord. Airport Grants/Finance 1.00 0 55,351 55,351 27,676 13,838 5,535 8,303 Sr. Office Assistant/Proj Dev Coord. 1.00 0 54,318 54,318 27,159 13,580 5,432 8,148 Subtotal 3.85 $194,647 $109,669 $304,316 V52,158 $76,079 $30,4K $45,647 Maintenance: Superintendent - Maintenance 1.00 $64,680 $0 $64,680 $25,872 $12,936 $6,468 $19,404 Sr. Technician - Maintenance 1.00 61,974 0 61,974 24,790 12,395 6,197 18,592 Maint. Worker - Facilities Maint. 1.00 0 44,882 44,882 17,953 8,976 4,488 13,465 Painter 1.00 52,045 0 52,045 20,818 10,409 5,205 15,614 Subtotal 4.00 $178,699 $44,882 $223,581 $89,432 $44,716 $22,358 _ $67,074 Engineering: Director Facilities Development 0.00 $0 $0 $0 $0 $0 $0 $0 Project Architect 0.00 0 0 0 0 0 0 0 Airport Project Develop Coord. 0.00 0 0_ 0 0 0 0 0 Subtotal 0.00 $0 $0 $0 $0 $0 $0 $0 ARFF: Firefighters - Chief Airport Rescue 1.00 $85,055 $0 $85,055 $10,632 $55,286 $8,506 $10,632 Shift Captain - ARFF 1.00 84,500 0 84,500 10,563 54,925 8,450 10,563 Shift Captain - ARFF 1.00 66,526 0 66,526 8,316 43,242 6,653 8,316 Shift Captain - ARFF 1.00 77,510 0 77,510 9,689 50,382 7,751 9,689 Airport Rescue Fire Fighter 1.00 56,975 0 56,975 7,122 37,034 5,698 7,122 Airport Rescue Fire Fighter 1.00 52,611 0 52,611 6,576 34,197 5,261 6,576 Airport Rescue Fire Fighter 1.00 66,526 0 66,526 8,316 43,242 6,653 8,316 Airport Rescue Fire Fighter 1.00 59,158 0 59,158 7,395 38,453 5,916 7,395 Airport Rescue Fire Fighter 1.00 54,793 0 54,793 6,849 35,615 5,479 6,849 Airport Rescue Fire Fighter 1.00 52,611 0 52,611 6,576 34,197 5,261 6,576 Subtotal 10.00 $656,265 $0 $656,265 $82,033 $426,572 $65,627 $82,033 Other Assistant County Attorney 0.25 $26,073 $0 26,073 $3,650 $13,558 $5.215 $3,650 Total Employees 18.10 $1,055,684 $154,551 $1,210,235 $327,274 $560,925 $123,631 $198,405 Newton & Assoclates,lne. Page 5 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE A: Airport Operating & Maintenance Expenses (Paste 5) - Pavroll Allocation Percentages Function Position ----- Cost Center Allocation ------ General Other Terminal Airfield Aviation Leased Total Administration: Director of Airports 50% 25% 10% 15% 100% Sr Administrator Airport Business 50% 25% 10% 15% 100% Sr. Coord. Airport Grants/Finance 50% 25% 10% 15% 100% Sr. Office Assistant/Proj Dev Coord. 50% 25% 10% 15% 100% Maintenance: Superintendent - Maintenance 40% 20% 10% 30% 100% Sr. Technician - Maintenance 40% 20% 10% 30% 100% Maint. Worker - Facilities Maint. 40% 20% 10% 30% 100% Painter 40% 20% 10% 30% 100% Engineering: Director Facilities Development 0% 0% 0% 0% 0% Project Architect 0% 0% 0% 0% 0% Airport Project Develop Coord. 0% 0% 0% 0% 0% ARFF: Firefighters - Chief Airport Rescue 13% 65% 10% 13% 100% Shift Captain - ARFF 13% 65% 10% 13% 100% Shift Captain - ARFF 13% 65% 10% 13% 100% Shift Captain - ARFF 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Airport Rescue Fire Fighter 13% 65% 10% 13% 100% Other Assistant County Attorney 14% 52% 20% 14% 100% Newton & Assoclates,lnc. Page 6 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE B: Less Cost Net Capital Projects: Runway Strengthening $0 $0 $0 -$0 5 $0 $0 $0 $0 $0 ARFF Truck 0 0 0 0 5 0 0 0 0 0 Access Road 0 0 0 0 5 0 0 0 0 0 Part 150 Noise 0 0 0 0 5 0 0 0 0 0 Apron Expansion 0 0 0 0 5 0 0 0 0 0 Building Renovations 0 -- 0 0 0 5 0_ - 0 0 0 0 Total $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Purchases: Expensed: Fire Equipment $0 $0 $0 $0 3 $0 $0 $0 $0 $0 Amortized: Airport Vehicle 0 0 0 0 5 0 0 0 0 0 Fire Equipment 0 0 0 0 5 0 0 0 0 0 Total $0 - $0 - $0 - - $0 $0 - $0 - $0 - --$0 - - $0 Total Projects & Purchases being "Expensed" FY 07 $0 $0__ $0 $0 $0 $0 Total Projects & Purchases to be Amortized beginning in FY 07 $0 $0 $0 $0 $0 Newton & Associates,lnc. Page 7 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE C: Calculation of Landing Fee Budget Final Budget FY 2006 FY 2006 FY 2007 AIRFIELD O&M EXPENSE: Personal Services $624,999 $693,217 $560,925 Contractual Services 179,250 180,751 212,891 Supplies & Materials 9,595 11,629 9,790 General 55,885 87,826 83,347 Minor Capital Outlays 46,169 738 51,394 Total Airfield O&M Expense $915,898 $974,161 $918,346 AIRFIELD CAPITAL EXPENSE: Airfield Amortization $0 $0 $0 Airfield Capital Expense 0 0 0 Total Airfield Capital Expense $0 $0 $0 TOTAL AIRFIELD REQUIREMENT: $915,898 $974,161 $918,346 Less: Estimated General Aviation Revenue* 134,291 134,291 140,076 Net Airfield Requirement $781,607 $839,870 $778,270 LANDING FEE CALCULATION: Estimated Passenger Airline Landed Weight (000 Lb. Units) 328,701 328,701 338,580 Estimated Cargo Airline Landed Weight (000 Lb. Units) _ 4,628 4,628 8,046 Estimated Total Airline Landed Weight (000 Lb. Units) 333,329 333,330 346,626 Airline Landing Fee Rate $2.3449 $2.5196 $2.2453 (Net Airfield Requirement / Airline Landed Weight) * Excludes ground rental of new hangar development. Newton & Associates,lnc. Page 8 KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE D: Calculation of Terminal Rental Rates SUMMARY TERMINAL SPACE: I Rentable Sq. Ft. Sq. Ft. Airline Space 51 % 12,337 12,337 Concession and Other Rentable Space 27% 6,444 6,444 Public Space 12% 2,927 2,927 Administrative & Support Space 9% 0 2,250 100% 21,708 23,958 Total Terminal Space Budget Final Budget FY 2006 FY 2006 FY 2007 TERMINAL O&M EXPENSE: Personal Services $274,598 $354,247 $327,274 Contractual Services 856,752 941,485 1,097,817 Supplies & Materials 57,568 69,772 58,740 General 55,885 87,826 83,347 Minor Capital Outlays 46,169 738 51,394 Total Terminal O&M Expense $1,290,970 $1,454,069 $1,618,571 Less: Direct Billed Security Charge (259,980) (229,426) (268,820) Net Terminal O&M Requirement $1,030,990 $1,224,643 $1,349,751 TERMINAL CAPITAL EXPENSE: Debt Service (Bonds/Notes) $0 $0 $0 Amortization 0 0 0 Depreciation 0 0 0 Total Terminal Capital Requirement $0 $0 $0 TERMINAL REQUIREMENT: $1,030,990 $1,224,643 $1,349,751 TERMINAL RENT CALCULATION: Terminal Requirement $1,030,990 $1,224,643 $1,349,751 Total Terminal Space (Sq. Ft.) 25,883 23,958 23,958 Average Terminal Rental Rate Per Square Foot $39.83 $51.12 $56.34 (Terminal Requirementrrotal Terminal Space) AIRLINE SPACE RENTAL Airline Space (Sq. Ft.) 14,262 12,337 12,337 Airline Requirement (Average Terminal Rental Rate times Airline SF) $568,098 $630,626 $695,050 AIRLINE RATE STRUCTURE Average Rental Rate - Passenger Terminal Building" $40.77 $41.77 $56.34 TY 2006 Average Rental Rate included Cape Air Building, which was destroyed in FY 2006. Newton & Associates,inc. Page 9a KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE D (Page 2): Calculation of Airline Terminal Class Rentals Equivalent Total Terminal Relative Class I Airline Category of Space Space Value Space Space Ticket Counter 2,481 100% 2,481 2,481 Office Space 1,978 80% 1,582 1,978 Second Floor Office 0 70% 0 0 Storage 0 50% 0 0 Covered Space 2,831 50% 1,416 2,831 Covered Space - Common Use 325 50% 163 325 Hold Room 3,226 100% 3,226 3,226 Baggage Claim 1,496 100% 1,496 1,496 Total 12,337 10,363 12,337 Average Rental Rate per Square Foot Per Annum $67.07 $56.34 Calculation of Class I Rate: Equivalent Class I Rental Required $695,050 $695,050 Equivalent Class I Space 10,363 Required Class I Rate (Per Sq. Ft.) $67.07 Rate Structure: Average Rental Rate $56.34 Rental Relative Revenue by Rental Rates - By Class Type Rate Value Space Type Ticket Counter $67.07 100% $166,395 Office Space $53.65 80% 106,128 Second Floor Office $46.95 70% 0 Storage $33.53 50% 0 Covered Space $33.53 50% 94,934 Covered Space -Common Use $33.53 50% 10,899 Hold Room $67.07 100% 216,361 Baggage Claim $67.07 100% 100,333 $695,050 Newton & Associates,lnc. Page 9b KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE D (Page 3): Calculation of Airline Terminal Rental Amoun Airline Space: Ticket Office 2nd Floor Storage Covered Hold Bag Total Space Classification Counter Space Space Space Area Room Claim Space Rental Rates $67.07 $53.65 $46.95 $33.53 $33.53 $67.07 $67.07 Airline Terminal Building: American Eagle 886 532 - - 196 - - 1,614 Continental Connection 667 482 - - 868 - - 2,017 Delta Connection 464 455 - - 558 - - 1,477 USAirways Express 464 509 - - 1,209 - - 2,182 Subtotal 2,481 1,978 - - 2,831 0 - 7,290 Non -Exclusive Space: Hold Room - - - - - 3,226 - Baggage Claim Area - - - 325 - 1,496 Total Airline Space 2,481 1,978 - - 3,156 3,226 1,496 Rental Amount: American Continental Delta USAirways Common Total Eagle Connection Connection Express Use Amount Airline Space Ticket Counter $59,422 $44,734 $31,119 $31,119 - $166,395 Office Space 28,544 25,861 24,413 27,310 - 106,128 Second Floor Space - - - - - 0 Storage - - - - - 0 Covered Space 6,573 29,107 18,712 40,542 - 94,934 Annual Rental $94,539 $99,703 $74,244 $98,972 - $367,458 Common Use Space - - - - 327,593 327,593 Total Annual Rental $94,539 $99,703 _ $74,244 $98,972 $327,593 $695,050 Est. Monthly Rental $7,878 $8,309 $6,187 $8,248 $27,299 $57,921 3,226 1.821 12,337 Newton & Assodates,lnc. Page 9c KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES SCHEDULE D (Page 4): Space Reconciliation Summary Available Space: Other Departure Covered Ticketing Office Rentable Lounge Bag Claim Area All Other Total Passenger Terminal Building: First Level 2,276 2,023 4,323 1,890 1,524 3,112 4,420 19,568 Second Level 0 0 2,234 0 0 0 2,156 4,390 Total Space 2,276 2,023 6,557 1,890 1,524 3,112 6,576 23,958 Space Breakdown by Use: American Continental Delta US Common Total Eagle Connection Connection Airways Use Airline Space: Ticket Counter 886 667 464 464 0 2,481 Office Space 532 482 455 509 0 1,978 Second Floor Space 0 0 0 0 0 0 Storage 0 0 0 0 0 0 Covered Space 196 868 558 1,209 0 2,831 Covered Space-CUA 325 325 Departure Room 3,226 3,226 Baggage Claim 1,496 1,496 Airline Totals 1,614 2,017 1,477 2,182 5,047 12,337 Concessions and Other Rentable Space: Car Rental 964 Gift Shop 361 Restaurant 2,998 Second Floor Rentable Space 2,121 6,444 Public Space Support Space: Airport Offices Other Total Terminal Building Space 2,927 1,898 352 2,250 23,958 Newton & Associates,lnc. Page 9d KEY WEST INTERNATIONAL AIRPORT FY 2007 AIRLINE RATES & CHARGES NEW FY 2007 RATES KEY WEST INTERNATIONAL AIRPORT TERMINAL RENT Airlines Publicly Exposed Space Nonpublic Office Space Second Floor Office Covered Areas & Storage Concessions (All Space) Car Rental Gift Shop Restaurant UTILITIES - Electric, Water, Sewer, Trash Removal (Included in the rental rate) LANDING FEE Rate per Thousand Pounds of Gross Landing Weight EYW SECURITY CHECKPOINT REIMBURSEMENT CHARGES Per Enplaned Passenger Cost: $268,820 Enpl. Pax: 291,764 OTHER TSA MANDATED SECURITY CHARGES Per Enplaned Passenger Cost: undetermined Enpl.Pax: 291,764 RON CHARGES For each aircraft in excess of 3 parked overnight at the Passenger Terminal Ramp For aircraft with more than 13 seats For aircraft with 13 or less seats FUEL FLOW FEES (per Gallon Delivered) LAND RENTAL RATES Aviation Use Property Hangar Rental Rate Non -Aviation Use Property County Leased Property FIS Building Space Per Square Foot Rental Rate per Annum New Rates $67.07 $53.65 $46.95 $33.53 $67.07 $67.07 $67.07 $2.25 $0.92 n/a $25.85 $12.93 $0.06 $0.75 $1.84 By Appraisal $1.35 $56.34 Newton S Associates,inc. 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On June 21, 2006, the Commission previously approved resolution authorizing issuance of Monroe County, Florida Airport Variable Rate Revenue Bonds. PJH/bev