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

$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% Packet Pg. 126  BOARD OF COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA SERVICE AREA: TRANSPORTATION DEPARTMENT/PROGRAM: AIRPORTS/DESTIN EXECUTIVE AIRPORT (DTS), GENERAL AVIATION PROGRAM DESCRIPTION: This program consists of the operation and maintenance of the general aviation airport in Destin which provides excellent accessibility to coastal communities and resorts. Revenues are derived from leases and fees charged through business operations based at the airport. With over 65,000 annual flight operations of private and corporate aircraft, and approximately 395 acres DTS serves a variety of travelers via two fixed base operators. REVENUE: Destin Airport generates revenue from landing fees, hangar leases and fixed-base operators. MAJOR ACCOMPLISHMENTS LAST YEAR:  The Destin Air Traffic Control Tower (ATCT) has been constructed and will be operational in Nov. 2016  Noise Wall project has been designed and bid; planning for a Aug 2016 award  Hangar Inspection program established to monitor lease compliance and ensure FAA grant assurances are met The following projects are planned for FY2017:  Design and reconstruction of taxiway, including adding new connector and widening intersections. PROGRAM GOAL: To provide a general aviation airport enviroment that is beneficial, destinctive, and conducive for private and business aircraft operations. DTS will provide a safe and secure operating environment that is an exceptional value for customers while minimizing noise impact and improving compatability with surrounding residential areas. KEY OBJECTIVES: 1. Exceed all federal (FAA, TSA) and state (FDOT) reglatory operating standards for security and security. 2. Provide a financially self-sufficient enterprise where airport specific revenue exceeds expenditures. 3. Implement recommendations of FAA Part 150 Noise Study. 4. Complete construction of the new Air Traffic Control Tower. 5. Develop residential noise mitigation plan to include voluntary home insulation or purchase. PERFORMANCE MEASURES: Actual Estimated Proposed Performance Measures FY15 FY16 FY17 Compare aircraft operations to employees (ratio) 16,250:1 16,250:1 16,250:1 Divide O&M expense by annual activity levels (ratio). $3.11:1 $3.82:1 $4.26:1 Determine cost per day acre by dividing annual O&M $512.29 $628.88 $700.32 expense by facility size. Operating Expense Ratio 29% 47% 37% Packet Pg. 127  BOARD OF COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA SERVICE AREA: TRANSPORTATION DEPARTMENT/PROGRAM: AIRPORTS/BOB SIKES AIRPORT (CEW) GENERAL AVIATION PROGRAM DESCRIPTION: This program consists of the operation and maintenance of the Bob Sikes general aviation airport near Crestview. CEW serves as the region’s logistical base providing a home to several aerospace manufacturing and modification companies. With over 1,080 acres and an ILS equipped 8,000 foot runway, the facility accommodates over 43,000 aircraft operations annually. An adjoining County industrial park is also home to several non-aviation related companies and forms a designated Enterprise Zone for future development opportunities. Over $26 million has been invested in airport infrastructure over the past three years in anticipation of future growth. REVENUE: Bob Sikes Airport revenue comes from fuel flowage fees, land and building leases and percentage of gross sales by the Fixed Base Operator as well as other land and building (hangar) leases. MAJOR ACCOMPLISHMENTS LAST YEAR:  Environmental and Design for a new Airport Access Road  Continue design efforts and construction on Foy Shaw Parkway  Hangar Inspection program established to monitor lease compliance and ensure FAA grant assurances are met The following projects are planned for FY2017:  Design Parking and Aircraft Apron rehabilitation PROGRAM GOAL: To provide a general aviation airport environment that is beneficial, distinctive and conducive for business activity and industrial operations. CEW will provide a safe and secure operating environment that is an exceptional value for customers and business partners. KEY OBJECTIVES: 1. Exceed all federal (FAA, TSA) and state (FDOT) regulatory operating standards for safety and security. 2. Provide a financially self-sufficient enterprise where airport specific revenue exceeds expenditures. 3. Attract new companies and expand tenant occupancy on airfield and industrial park through aggressive marketing. 4. Support military related programs and assist on-site aerospace companies with related operational requirements needed to win contracts. 5. Work with Economic Development Council and other agencies to fast track development initiatives. 6. Operate facility with efficiency and lowest possible O&M expense. Packet Pg. 128 PERFORMANCE MEASURES: Actual Estimated Proposed Performance Measures FY15 FY16 FY17 Compare aircraft operations to employees (ratio) 10,750:1 10,750:1 10,750:1 Divide O&M expense by annual activity levels (ratio) $6.10:1 $6.01:1 $5.71:1 Determine cost per acre by dividing annual O&M expense $242.80 $239.48 $227.39 by facility size. Includes land purchase debt service. Operating Expense Ratio 65% 79% 48% HISTORICAL STAFFING SUMMARY: Category FY14 FY15 FY16 FY17 Full-time Administrative & Support 26 26 28 32 Full-time Management & Professional 6 6 7 8 Full-time Operations & Trades 10 10 8 8 Relief 10 10 10 10 Total 52 52 53 54 EXPENDITURES: Expenditures Budget FY14 FY15 FY16 FY17 FY16/FY17 Increase/ Category Actual Actual Approved Proposed +/- Decrease Personnel Services $2,228,730 $2,395,171 $2,659,031 $2,754,955 $95,924 3.6% Operating Expenses $5,315,892 $5,528,012 $5,671,186 $5,636,669 ($34,517) -0.6% Capital Outlay $165,628 ($20,215) $57,930 $225,726 $167,796 289.7% Debt Service $1,299,671 $946,118 $2,189,467 $1,543,107 ($646,360) -29.5% Other Uses $0 $0 $18,837,857 $24,651,249 $5,813,392 30.9% Total $9,009,921 $8,849,086 $29,415,471 $34,811,706 $5,396,235 18.3% ACCOUNTS: FY15 FY16 FY17 FY16/FY17 Increase/ Code Category Approved Approved Proposed +/- Decrease 10 Salaries & Wages $1,797,151 $1,853,827 $1,964,143 $110,316 6.0% Increase is due to a Contracts and Lease Coordinator position transferred from the General Fund and the $800 per employee raises. 20 Benefits 703,256 805,204 790,812 (14,392) -1.8% 31 Professional Services 369,550 287,900 331,000 43,100 15.0% Amount requested includes costs for professional services and is $89k below the current expenditures in FY2016. 32 Accounting & Auditing 36,500 36,500 40,000 3,500 9.6% Auditing costs are allocated by Department based on cost associated with CAFR preparation. Increase based on FY2016 cost. 34 Contract Services 1,724,271 1,730,416 1,811,702 81,286 4.7% 40 Travel & Per Diem 32,870 33,290 24,400 (8,890) -26.7% 41 Communications Services 26,960 24,150 22,286 (1,864) -7.7% Packet Pg. 129  42 Freight & Postage 2,400 2,500 2,940 440 17.6% 43 Utility Services 810,000 761,500 927,950 166,450 21.9% Based estimate on average utility invoices during this FY; Electric is expected to increase 27% over FY2016 requested. 44 Rent & Leases 581,400 568,133 588,018 19,885 3.5% 45 Risk Management Allocation 273,503 311,160 240,078 (71,082) -22.8% 46 Repair & Maintenance 727,523 724,975 551,767 (173,208) -23.9% Decrease based on historical expenses and review of all know contracts and agreements. In addition, realignment of supply or