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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: March 19, 2013
TO: Honorable Chairman and Members of the Board
FROM: Dino J. Villani
SUBJECT: BP Claim Settlement
DEPARTMENT: Airport
BCC DISTRICT: All
STATEMENT OF ISSUE: The BCC is requested to accept, as full and final, the offer from the
BP Government Claims Office.
BACKGROUND: The BCC is requested to approve a negotiated settlement offer of $98,815
from the BP Deepwater Horizon oil spill Government Claims Office. This claim is based on
calculated revenue loss to the Northwest Florida Regional Airport due to the oil spill during the
period June 1, 2010 and August 31, 2010. The Airport’s consultant, AMRI, originally calculated
the claim at $264,211. The claim was based upon rental car, parking, terminal concession and
fuel flow revenue direct and calculated losses, plus the calculated loss of FAA grant entitlements,
Passenger Facility Charges and rental car Customer Facility Charges. The BP claims office
stated that this calculation did not follow the required model established for government claims,
and offered $50,409. The Airport countered with a revised claim for $123,823 basically
following the BP Government claims models; however, taking issue with the BP assumption that
50% of airline traffic was related to business and therefore unlikely to have declined visiting the
Gulf Coast because of the oil spill. BP raised its offer to $82,346 after accepting our argument
that all the lost passenger related revenue was tourist driven, and said they would consider
another 20% if the County accepted this as a “full and final” offer. They also agreed to
reimburse our expenses of $13,000 for a total of $98,815. The Airport staff believes this
settlement has been negotiated in good faith by both parties accepting the BP Claims Office
contention that their offer is based on the published ground rules agreed to by other government
entities, and under which it settled numerous claims for the oil spill.
OPTIONS: Approve, Reject or Table
RECOMMENDATIONS: Accept the offer of $98,815 in full and final settlement and authorize
the Chairman (by Resolution) to sign the approved agreement.
RECOMMENDED BY:
APPROVED BY:
James D. Curry, County Administrator