Okaloosa County BOCC — August 1, 2016 — Airports PBB

BOARD OF COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA SERVICE AREA: TRANSPORTATION DEPARTMENT/PROGRAM: AIRPORTS/DESTIN-FORT WALTON BEACH AIRPORT (VPS) – OPERATIONS AND MAINTENANCE PROGRAM DESCRIPTION: Destin-Fort Walton Beach Airport operates and maintains a 130 acre facility with a 121,000 square foot terminal building to provide schedules airline service to over 800,000 passengers annually through four (4) airlines. Seven (7) rental car companies and other concessions provide services to an additional 1 million visitors. REVENUE: Destin-Fort Walton Beach Airport generates revenue from concession agreements, parking fees, landing fees and terminal rents. Passenger Facility Charges (PFC) associated with airline tickets and Customer Facility Charges (CFC) associated with rental car agreements provides revenue for specific projects. MAJOR ACCOMPLISHMENTS LAST YEAR:  Maintained an upgraded bond rating from Standard & Poor’s of BBB+ with stable outlook for 6th straight year  New Air Service provided by two (2) new carriers to nine (9) new cities  Awarded the Airport Rescue and Firefighting (ARFF) construction contract  Negotiated and awarded Airline and Rental Car agreements that will cover five (5) years with five (5) extensions  Coordinated an amendment to the Enhanced Used Lease that includes an extended 50 year lease, new lease fee payment, modification to the Joint Use Agreement terms and permission to construct a gas station  Replaced two Regional Boarding Ramps with Passenger Loading Bridges  Baggage Inspection System modernization/upgrade  Increased financial controls with full implementation of automated financial system (Prop Works), establishment of compliance system for leases and contracts, and new staff with a focus on internal controls  Established an audit program for Airport concessions to ensure compliance with General Accepted Accounting Practices and accurate reporting of revenue PROGRAM GOAL: To provide safe, affordable, dependable air transportation and support services in a premier facility that ensures comfort and convenience for business, military and leisure travelers. KEY OBJECTIVES: 1. Exceed all federal (FAA, TSA, etc.) and state (FDOT) regulatory operating standard for safety and security. 2. Provide a financially self-sufficient enterprise where airport specific revenue exceeds expenditures. 3. Continue to develop air carrier services and support businesses that provide a positive economic impact on the community that exceeds $500 million annually. 4. Build upon successful advertising and marketing campaigns to showcase the attributes of VPS to prevent passenger leakage to other competing airports in the region. 5. Maintain the lowest cost per enplaned passenger in the region. 6. Keep all operations and maintenance related expenses at the lowest possible level. 7. Increase sources of non-airline revenue to lower airport rates and charges. PERFORMANCE MEASURES: Actual Estimated Proposed Performance Measures FY15 FY16 FY17 Achieve the lowest Cost per Enplaned Passenger (CEP) $4.99 $4.55 $4.97 Maintain lowest debt per enplaned passenger $44.18 $42.87 $40.32 Maintain high debt service coverage ratio 1.78 1.62 1.86 Increase non-airline revenue per sq. ft. of terminal space $47.91 $56.67 $53.79 Achieve high non-airline revenue per enplaned passenger $14.82 $16.52 $15.63 Compare enplaned passengers per employee 7,856:1 8,168:1 7,881:1 Operating Expense Ratio 97% 92% 93%