Okaloosa County BOCC — August 1, 2016 — Agenda Packet — reading text

$5,500 $0 0.0% 43 Utility Services $1,588,000 $1,956,000 $1,958,000 $2,000 0.1% 44 Rent & Leases $384,323 $391,789 $399,405 $7,616 1.9% 45 Risk Management Allocation $503,456 $503,456 $393,428 $(110,028) -21.9% Decrease is due to insurance costs. 46 Repair & Maintenance $2,049,088 $2,050,187 $2,745,278 $695,091 33.9% Increase primarily for water tank painting and repair. 47 Printing & Binding $1,750 $2,000 $2,000 $0 0.0% 49 Miscellaneous Charges $174,200 $211,300 $212,500 $1,200 0.6% 51 Office Supplies $15,000 $15,000 $15,000 $0 0.0% 52 Operating Supplies $1,067,584 $994,708 $922,001 $(72,707) -7.3% Reduction primarily due to reduced Fleet fuel allocation. 54 Books/Pubs/Subs & Memberships $21,000 $21,000 $21,000 $0 0.0% 55 Training & Education Expenses $15,000 $21,000 $25,000 $4,000 19.0% Increase in training for additional staff - Primarily required for SCADA. 60 Capital Outlay $18,815,594 $21,568,500 $24,391,000 $2,822,500 13.1% Capital Outlay, Vehicles and CIP. 71 Principal $4,656,272 $2,377,300 $3,322,859 $945,559 39.8% Increase due to bond refunding. 72 Interest $3,664,004 $3,309,233 $3,283,666 $(25,567) -0.8% 73 Other Debt Service Costs $1,750 $1,000 $0 $(1,000) -100.0% Elimination is due to bond refunding. 81 Aids to Government Agencies $166,350 $0 $0 $0 0.0% 99 Reserves 16,700,161 20,277,145 22,884,285 2,607,140 12.9% TOTAL $60,940,755 $65,277,202 $72,463,541 $7,186,339 11.0% Packet Pg. 111  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 1, 2016 TO: Honorable Chairman and Members of the Board FROM: John Hofstad, County Administrator SUBJECT: Airports The attached documents provide the Performance Based Budget for the Airports Department. Packet Pg. 112 AIRPORTS DEPARTMENT FISCAL YEAR 2017 BUDGET SUMMARY Packet Pg. 113 AIRPORTS DEPARTMENT STAFF Packet Pg. 114 FY2016 MAJOR ACCOMPLISHMENTS  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  Dev and Imp Hangar Inspection program established to monitor lease compliance and ensure FAA grant assurances are met  Developed and currently negotiating proposal to the EUL 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  Negotiated and awarded Airline and Rental Car agreements that will cover five (5) years with five (5) extensions  Maintained an upgraded bond rating from Standard & Poor’s of BBB+ with stable outlook for 6th straight year  Bob Sikes and Destin Executive Airports were inspected by the FDOT Aviation Division and both received excellent ratings and were lauded by Inspector as “a very well managed and well-run system of airports”  Completed FAA Part 139 Inspection with zero discrepancies. Training program was developed to provide initial and reoccurring training for staff  New Air Service provided by two (2) new carriers to nine (9) new non-stop routes Packet Pg. 115 HISTORICAL STAFFING Category FY14 FY15 FY16 FY17 Full-time Administrative & Support 26 26 28 29 Full-time Management & Professional 6 6 7 7 Full-time Operations & Trades 10 10 8 8 Relief 10 10 10 10 Total 52 52 53 54 Packet Pg. 116 OPERATING EXPENSES BY AIRPORT Airport FY2016 FY2017 % (+/-) Destin-Fort Walton Beach Airport $7,823,175 $7,882,564 0.76% Destin Executive Airport $248,409 $276,625 11.4% Bob Sikes Airport $258,633 $245,586 -5.04% Total $8,330,217 $8,404,775 0.90% Packet Pg. 117  OPERATING REVENUE BY AIRPORT Airport FY2016 FY2017 % (+/-) Destin-Fort Walton Beach Airport $7,915,469 $8,438,994 6.61% Destin Executive Airport $525,050 $749,472 42.7% Bob Sikes Airport $367,952 $508,240 38.1% Total Operating Revenue $8,808,471 $9,696,706 10.1% Restricted Revenue Accounts FY2016 FY2017 % (+/-) Passenger Facility Charges $1,442,000 $1,650,000 14.4% Customer Facility Charges $1,500,000 $1,700,000 13.3% Interest Revenue $115,000 $180,000 56.5% Total Restricted Revenue $3,057,000 $3,530,000 15.5% Packet Pg. 118 AIRPORTS OPERATING POSITION Destin-Fort Walton Destin Executive Bob Sikes Airport Beach Airport Airport FY2017 Operating Revenue $8,438,994 $749,472 $508,240 FY2017 Operating Expense $7,882,564 $276,625 $245,586 Operating Earnings $556,430 $472,847 $262,654 Capital Outlay ($169,726) ($8,000) ($48,000) Net Operating Earnings $386,704 $464,847 $214,654 Total Net Operating Earnings $1,066,205 Other Revenue (Restricted) $3,530,000 Net Revenue $4,596,205 Debt Service ($1,543,107) Increase to Reserves $3,053,098 Packet Pg. 119 BAGGAGE HANDLING SYSTEM PROJECT TSA OTA $4,318,169 Packet Pg. 120 AIRPORT RESCUE FIRE FIGHTING FACILITY Federal Funding $3,155,055 State Funding $150,000 Match/PFC $200,561 Packet Pg. 121 AIR TRAFFIC CONTROL TOWER Federal Funding $2,000,000 State Funding $1,736,682 Local Match/PFC $1,939,352 Packet Pg. 122 FOY SHAW PARKWAY State Funding $3,804,231 Local Match/PFC $911,056 Packet Pg. 123 Destin-Fort Walton Beach Airport Is Served by Allegiant, American, Delta, GLO and United to 14 Destinations Packet Pg. 124 Page 12  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. Packet Pg. 125 PERFORMANCE MEASURES: Actual Estimated Proposed Performance Measures FY15 FY16 FY17 Achieve the lowest Cost per Enplaned Passenger (CEP) $4.99 $4.55