Okaloosa County BOCC — September 16, 2014 — PFC6 Project Description & Capital Plan — reading text

and recreational fliers as part the Airport's operational mix. Eglin AFB is one of the busiest U.S. Air Force bases in the country and serves aircraft ranging from low-speed helicopters and fixed-wing aircraft to high performance jet fighters. Controller eyes on the field and airspace contro! between Destin and Eglin will dramatically enhance the safety at DTS and Eglin. A Benefit Cost Analysis ("BCA") quantifying the benefits of establishing the ATCT at Destin was completed in May of 2009 quantifying the delay implications of continuing to operate Destin without a tower and accepting delays occasioned by holding aircraft until receiving clearance from the Eglin Tower. The calculated annual delay of Destin continuing to operate without a tower, as proposed, was $2,077,616 annually in 2009 dollars, including crew costs. As a result of the BCA, Destin was admitted into FAA's Contract Tower Program in July of 2010. An ATCT Siting Study was completed in 2012, subsequently; an Environmental Assessment was completed and approved by the FAA in July of 2013. The proposed ATCT is located 550-feet from the centerline of Runway 14-32 and 3,600 feet from the existing approach end of Runway 14 at Eglin. The proposed tower height is 70' to 84.5'. The tower cab will be accessed by stairs and an elevator located in the shaft of the tower. Due to the limited height of the tower, it is assumed that a small base building will be required to house necessary equipment and airport support functions. The project includes a 3,400-feet roadway and site utilities necessary (i.e., water, sanitary, etc.) to make the ATCT functional, The project will be funded with $2 million in AIP funds under AIP Grant No. 3-12-0020-017-2014, $1,250,000 in PFCs, and $1,486,682 in FDOT funds and the balance from County funds. 6 of 10 12 13 14 Terminal Area Rehabilitations & Improvements Phase 1 PFC Level: $4.50 PFC Revenue: $26,250 Description: During the period FY2015 through FY2017, the County will undertake a series of Terminal Area (terminal building, apron, parking and access improvements) to repair, rehabilitate and preserve Terminal Area infrastructure for VPS to ensure that these facilities are preserved as functional elements of the VPS for the ensuing 20-year period. The individual projects included within this Project 12 include the following: 12-A Terminal Flooring Area Improvements (PFC Revenue $15,000) Description: This project will install terrazzo flooring in the ticketing wing and baggage claim wing of the Terminal Building to provide a long-term flooring improvement to these public areas of the Terminal. This improvement will eliminate the need for periodic flooring replacement during the useful life of the Terminal Building. 12-B Terminal Lighting Improvements (PFC Revenue $11,250) Description: This project will replace the incandescent lighting fixtures within the public areas of the Terminal Building with new LED lighting installations. PFCs will fund the local share of the project not otherwise funded from AIP and FDOT funds. Parking Lighting Improvements PFC Level: $4.50 PFC Revenue: $11,250 Description: This project will replace the incandescent lighting in the Public Parking Lots of the Airport with new LED lighting installations. PFCs will fund the local share of the project not otherwise funded from AIP and FDOT funds. Complete Expansion of Second Level Pier Concourse PFC Level: $4.50 PFC Revenue: $500,000 Description: This project will complete the gate development at the end of the second level of VPS's Pier Concourse. The project will complete the balance of work which remained after the two-gate addition was added under PFC Application No. 10-05-C-00-VPS and AIP Grant No, 3-12-0081- 023-2010. This project will add 5,500 square feet of space. The expansion 7 of 10 15 16 will include 2,000 square feet of holdroom space, 1,500 square feet of shell space to be developed into passenger concession facilities, with the balance of 2,000 square feet being public and mechanical space. The project will include the installation of a passenger loading bridge with ground power, passenger bag lift, and conditioned air. PFCs will cover $500,000 of the cost ‘of this project. The balance of $3.5 million will come from $30 million in AIP entitlements and MAP discretionary funds and $500,000 in FDOT funds. Rehabilitate Fuel Farm Tanks & Pumps PFC Level: $4.50 PFC Revenue: $45,000 Description: This project will recondition and rehabilitate the storage tanks at the Airport's fuel farm. After sand blasting and cleaning the tanks and pipes comprising the system, they will be recoated. The project will also retrofit and rehabilitate the fuel farm pump system. PFCs will be used only for the aviation fuel part of the fuel farm. PFCs will cover the local share of the project cost matching $45,000 in FDOT. Ninety percent (90%), or $810,000 of $900,000 of the total cost, will be funded from AIP funds. Acquire Long Term Lease on Land Comprising NWFRA PFC Level: $4.50 PFC Revenue: $6,956,880 Description: Okaloosa County ("County") proposes to obtain from the United States Air Force ("USAF") a new, long-term, real property lease ("New Lease") for the Northwest Florida Regional Airport ("VPS" or "NWFRA"). The preferred term would be 99 years, but at a minimum the County proposes to acquire a lease of at least a 50-year term. At the same time, the County proposes to acquire a new Joint Use Agreement ("JUA") of like term duration which will not be part of this PFC project. The County's current JUA with the USAF expires on February 27, 2031. The proposed New Lease would replace the existing lease ("Existing Lease") which is an operating lease which expires July 16, 2038. The Existing Lease, which was originally a 25-year lease, was extended in July of this year to the new July 16, 2038 expiration date. The County proposes to convert the New Lease into a "capitalized lease" which would allow the County to make a one-time, up-front capitalized lease payment to the USAF representing the fair market value of the leasehold interest acquired or the net present value of the lease payments over the term, whichever is less, in lieu of making annual operating lease rental payments. Converting the County's leasehold to this capitalized lease would allow the County to make this one-time, up-front payment for the New Lease from Airport Improvement Program ("AIP") grant funds and Passenger Facility Charges ("PFCs"). AIP funds are anticipated to come from AIP discretionary funds designated for VPS under its current Military 8 of 10 17 Airports Program designation (Fiscal Years 2012 - 2016) and AIP entitlements. Changing the County's leasehold from an operating to a capital lease, as proposed, would reduce NWFRA's average annual operating cost "(under its Existing Lease) by approximately $554,000 annually, or the equivalent of $1.23 per enplaned passenger. Since the Existing Lease is an operating lease, periodic annual rental payments are treated as operating costs in the airline rates and charges calculation. Assuming the County acquires a long-term, capitalized lease as its New Lease for the minimum period of 50 years, the projected operating cost savings to the County and the airlines over the 50-year term would be approximately $45 million. Acquisition of the long-term, capitalized New Lease, as proposed, and the acquisition of a new, long-term JUA of 50 years or more, would assure that VPS has a long-term, adequate interest in land and also provide long-term access to Eglin Flying facilities to allow for the continuous operation of the Northwest Florida Regional Airport and to enable the County to finance future airport development through the Airport Improvement Program (satisfying applicable AIP Grant Assurances) and the issuance of general airport revenue bonds ("GARBs"). The project cost of $8.5 million would be funded by $3 million in MAP funds, $5 million in PFC pay-as-you-go and capital funds, and $.5 million from FDOT. PFC revenue would cover pay- as-you-go and bond capital and financing costs of $6,956,880. Improvements to West Side Parking Apron PFC Level: $4.50 PFC Revenue: $90,000 Description: This project involves the milling and removal of the surface of the West Aircraft Parking Apron at the Airport's Pier Concourse's Lower Level and replacing the asphalt with a concrete overlay of sufficient strength to support the parking and taxiing of a diverse mix of larger aircraft projected for VPS (i.e., larger regional jets of 90 seats or more and narrow body mainline jets like the Boeing 717), PFCs will cover the local share of this project with a like match from FDOT. Ninety percent (90%), or $1,620,000 of the total cost of $1,800,000 will be funded from AIP funds. 9 of 10 18 19 Rehabilitate Taxiways D-1 & D-2 PFC Level: $4.50 PFC Revenue: $135,000 Description: This project will rehabilitate Taxiway D-1, originally constructed in the 1970s and widened in 2001, but not rehabilitated. It will provide a 3" asphalt overlay on the full strength pavement and 2” overlay on the shoulder, after milling and removing unsuitable pavement, and replace taxiway lighting fixtures, cans, conduit and cable with LEDs. Taxiway D-1 is one of two airport taxiways connecting the VPS Terminal Apron to the Eglin Flying Facilities. This project will also rehabilitate and improve Taxiway D-2, the parallel taxiway to D-1 originally constructed as part of the Terminal Development Program, in a like manner to Taxiway D-1. The existing taxiway signs, foundations, conduit and cable of both taxiways will also be replaced under this project. PFCs will fund the County's portion of the local share of this project. Ninety percent (90%) or $2,430,000 of the project cost of $2,7 million will be funded by AIP entitlements. PFC Program Formulation and Administrative Costs PFC Level: $4.50 PFC Revenue: $50,000 Description: This project will reimburse the County for the program formulation expenses incurred to develop the proposed PFC program, consult with the airlines, provide for public comment, prepare and file Application No. 14-06-C-00-VPS and related attachments, and notify airlines of collection requirements and annual administrative expenses incurred to administer collection under the proposed Application, including accounting, auditing and FAA and airline reporting expenses for the proposed collection period plus the cost of preparing any amendments required and application closeout documents. Project formulation expenses are estimated to be $32,000, while the balance of $18,000 is the estimated administrative expense over the collection and closeout period. 10 of 10 PFC APPLICATION NO. 14-06-C-00-VPS PFC PROJECT CAPITAL PLAN LOCAL FUNDING PFC AIPIPEC PFC PROJECT FISCAL ELIGIBLE FEDERAL FUNDS FDOT Pay-As- BOND NUMBER DESCRIPTION YEAR | TOTAL COST % ENTITLEMENT | DISCRETIONARY| GA ENTITLEMENTS MAP. FUNDS GP FUNDS You-Go CAPITAL REIMBURSEABLE PROJECTS: (1) BOB SIKES AIRPORT: 1 Purchase 36 Acres of Land to Construct New Access System $ 829,000 $ 10,000 | $ 849,000 2 Rehabilitate & Widen Taxiway A $ 6,634,365 $ 3,603,845 | $ 487,853 $ 2,301,747 $ 180,920 3 Stormwater Master Plan $ 408,200 $ 178,383 $ 229,817 4 Stormwater Improvements $ 3,053,064 $ 810,441 $ 892,870 $ 133,608 | $ 1,216,052 5 North Apron Expansion $1,554,139 $ 1,554,139 TOTAL REIMBURSEABLE PROJECTS § 12,478,765 | $ -|$ “1S 4,692,669 | $ 487,863 | $ o[$ 3,284,617 | $ -|[$ 294,618] $ 3,819,008 F¥2043; NWERA: 6 Construct Quick Response ARFF Bldg to Serve VPS 2013 | $ 3,048,762 |$ 2,743,526 |$ 2,743,526 $ -|$ 150,000 $ 155,236 Total FY2043 $ 3,048,762] $ 2,743,626] $ 2,743,626 | $ -|$ $ -1$ 150,000 | $ -[$ 156,236 | § - FY2014: NWFRA: 7 Replace Ramp Sweeper for VPS Air Side 2014 | $ 73,000 $ 73,000 & Replace Regional Boarding Ramps with Passenger Loading 2014 7$ 2,084,873] $ 1,876,387] $ 1,876,387 $ 104,243 $ 104,243 Bridges at Gates