Okaloosa County BOCC — August 6, 2013 — Resolution for Airport Revenue Refunding Bonds, Series 2013 — reading text

judgment of the Base Commander. The Airport is one of 22 joint-use airports in the country. The Airport's civil aviation operations share the military runways at Eglin Air Force Base and use Eglin's air traffic control facilities to coordinate aircraft operations. Pursuant to a 30-year Joint-Use Agreement commencing February 27, 2001 and expiring on February 26, 2031, the Air Force permits scheduled commercial aircraft to use the flying facilities at Eglin Air Force Base for not more than 84 operations (including landings and takeoffs) per day, under the control of the Air Force control tower, and subject to priority for military takeoffs and landings. This agreement is subject to suspension or termination on a similar basis to the Lease, described above. The County pays an annual amount based on operations to reimburse the Air Force for its share of the cost of operating and maintaining the flying facilities. The County has submitted a proposal to the Air Force for a new 50-year Lease and Joint-Use Agreement. Management Ernie Padgett, Okaloosa County Administrator, was appointed by the Board of County Commissioners in 2013. He brings over 30 years’ experience in Florida local government to Okaloosa County. During his career he has managed three Florida counties with populations ranging from 50,000 to 300,000 and has also been a county commissioner. Mr. Padgett holds a 23 Master's Degree in Public Administration from Florida State University. He is responsible for implementing the Board's policies, preparing the annual budget for the Board's approval and appointing department heads. He also supervises the County's approximately 900 employees. Mr. Padgett oversees the executive branch of government, which includes 16 departments including: Airports, Corrections, Public Safety, Growth Management, Public Works, Water and Sewer and County Administrative Services (Extension Services, Information Services, Human Resources, Purchasing, Risk Management, Veteran Services, Fleet Operations, Court Services and Facility Maintenance). The Airports Director is Sunil Harman, A.A.E., IAP. Mr. Harman has served as Airports Director since July 2013. Prior to accepting this position, he was the Aviation Director for the City of Tallahassee and its Regional Airport. Mr. Harman has over 26 years of experience in the aviation industry in airports management, operations and airport capital facilities development. Previously he was Division Director-A viation Planning, Land-Use and Grants for the Miami-Dade Aviation Department. Before Miami, Mr. Harman was Director, Aviation Systems Planning for the San Diego County Regional Airport Authority. Mr. Harman is a graduate of Embry Riddle Aeronautical University with an MBA. He is also an Accredited Airport Executive of the American Association of Airport Executives and accredited International Airport Professional (IAP) by the Global ACI-ICAO Airport Management Professional Accreditation Program. Mike Stenson is the Deputy Airports Director for Administration and Finance. Mr. Stenson served proudly in the U.S. Air Force for 20 years and has a bachelors degree from the University of Maryland and MBA degree from Troy University. He serves locally on the Niceville Chamber Board of Directors, USO of Northwest Florida Board, Heart Walk Executive Leadership Team and Florida Airports Council and nationally as an active member of the American Association of Airport Executives. The Airports Administration and Finance Manager is Jon P. Morris. He has served since July 1998. Previously he was the Grants and Contracts Manager for Okaloosa County. Prior to his service with the County, Mr. Morris held senior management positions in the United States Air Force at the Pentagon and the Air Force Special Operations Command. This last assignment as Director of Financial Management and Comptroller for AFSOC culminated a 30-year career in governmental budget and finance. Mr. Morris graduated from the University of Kansas with a Bachelor of Science in Business Administration and obtained a Master of Science from the University of Colorado in Management and Accounting. He recently completed a Master of Aeronautical Science from Embry-Riddle Aeronautical University. The Airports Deputy Director for Operations and Programs is Tracy A. Stage. He has worked for the Airports Department since 2006. Prior to his employment with Okaloosa County, Mr. Stage was Facilities Project Administrator for The Boeing Company, Integrated Defense Systems: Special Operations Forces Division in Fort Walton Beach, Florida. Mr. Stage held a variety of civil engineering positions with the United States Air Force from 1994 to 2003. He earned his Bachelors Degree in Management from the University of Phoenix. 24 Service Area The area primarily served by the Airport (the "Air Trade Area") is Okaloosa County and a portion of its two adjoining Florida counties, Santa Rosa County and Walton County. The Air Trade Area is located in the panhandle of Florida along the shores of the Gulf of Mexico. The City of Fort Walton Beach is the largest city within the Air Trade Area and is located approximately 151 miles west of Tallahassee and 41 miles east of Pensacola. Passengers originating from adjacent Escambia, Holmes, and Washington counties in Florida, as well as Southern Alabama, may constitute a secondary service area, but most passengers using the Airport originate in the Air Trade Area. There is no connecting or hub activity at the Airport, and all passengers are "origin and destination passengers." The nearest competing airports are Pensacola International Airport, 50 miles to the west, and Northwest Florida Beaches International Airport, 58 miles to the east. Set forth below is the historical regional share of enplanements for the Northwest Florida Regional Airport, the Pensacola International Airport and the Panama City's Northwest Florida Beaches International Airport. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) 25 9T REGIONAL SHARES OF ENPLANEMENTS Northwest Florida Beaches Northwest Florida Regional Pensacola International International Regional . Regional Regional Calendar Year Enplanements Share Enplanements Share Enplanements Share Regional Total 2003 355,367 28.83% 690,095 55.99% 187,066 15.18% 1,232,528 2004 388,958 29.33 741,311 55.91 195,688 14.76 1,325,957 2005 407,053 28.70 821,477 57.91 189,938 13.39 1,418,468 2006 370,558 27.26 812,121 59.74 176,640 12.99 1,359,319 2007 411,116 28.93 840,483 59.14 169,660 11.94 {,421,259 2008 391,027 29.28 776,440 58.15 167,877 12.57 1,335,344 2009 386,724 31.22 696,412 56.22 155,557 12.56 1,238,693 2010 370,534 25.77 742,301 51.62 325,203 22.61 -1,438,038 2011 447,242 27.05 772,997 46.75 403,081 26.19 1,653,320 2012 385,428 23.02 759,215 48.77 439,183 28.21 1,556,826 Weighted Average 27.94% 55.02% 17.04% 100.0% Compounded Annual Growth Rate 0.91% 1.07% 9.95% ) Formerly Panama City-Bay County International Airport. A new airport was constructed west of Panama City in 2010, Source: Okaloosa County Airports Department Airfield Facilities The airfield facilities at the Airport (the "Airfield") consist of two precision instrument runways, Runway 12/30 and Runway 1/19, together with associated taxiways, aircraft parking aprons and an Air Force air traffic control tower. Runway 12/30 is 12,005 feet long and runway 1/19 is 10,012 feet long and both are equipped with high intensity runway edge lighting with sequenced flashers located on each end of the runways. Both runways are available to the County based on the Joint Use Agreement. With the exception of the civilian aircraft Taxiways D-1 and D-2 and the terminal apron, all airside facilities are maintained by the Air Force. Taxiways D-1 and D-2 are parallel taxiways providing access from the terminal aircraft parking apron to Runway 12/30 and its northern parallel taxiway. Both taxiways are equipped with medium intensity taxiway edge lighting. The dual taxiway system provides for the ability to operate simultaneous arriving and departing operations without undue aircraft hindrance or delay. Terminal Facilities Following the completion of the Airport’s 1998 master plan and based on recommendations therein, the County began the planning, design, and construction of a new terminal facility. At that time, the age and condition of the Airport’s existing 38,000 square foot terminal building, and the increasing passenger levels accommodate by the Airport, dictated the need for a larger, more modern facility. The new two-story terminal facility, including a pier concourse with three second level and three ground level gates, with an area of approximately 110,000 square feet, opened in November 2004. In 2011, the concourse area was expanded to include two additional upper level gates. The first floor area was developed to lease to the Transportation Security Authority (TSA). The new areas brought the terminal to just over 119,000 square feet. The terminal includes five gate passenger loading bridges on the upper- level of the east side of the concourse and three regional jet gate areas on the lower west side. In addition to areas for airlines, the terminal includes areas for five rental car operators, space for the Transportation Security Administration (TSA), food/beverage and gift operations, passenger support facilities and the Airport’s administration and maintenance departments. Support Facilities Rental Car Areas. There are currently six rental car companies operating from five counters on-site at the Airport. The companies currently lease rental car counter and office space totaling approximately 750 square feet in the passenger terminal to support their on-Airport operations. The on-site manager and other staff generally share these offices. The rental car companies occupy a consolidated service facility located east of the passenger terminal building. The County opened new rental car service facilities, including office/storage areas, vehicle maintenance areas, a five-bay consolidated car wash building, a consolidated fueling facility, and vehicle storage areas for each rental car operator in 2009. The Airport's primary ready/return area is located on the east side of the terminal building, and contains a total of 439 parking spaces. Additional parking next to each company's maintenance area is provided for storing overflow rentals. On an annual basis, rental car 27 operators are allocated ready/return spaces in these areas based on their market share at the Airport. Public/Employee Parking. Existing public and employee parking facilities at the Airport comprise a total of approximately 2,374 vehicle parking spaces. Existing parking facilities and their respective capacities are summarized as follows: Long Term — 795 total spaces including 16 reserved for handicap use Short Term — 207 total spaces including 6 reserved for handicap use Employee Lot — 542 spaces including 12 reserved for handicap use Reserved — 47 spaces including 2 reserved for handicap use Credit Card Express — 783 spaces including 15 reserved for handicap use Fuel Facility. In 2009, a new fuel storage facility was constructed east of the new cargo/maintenance building. It consists of four 20,000 gallon above ground storage tanks for Jet A aviation fuel. In addition, there are two 25,000 gallon above ground tanks for unleaded gasoline through which the Airport stores and sells fuel to the rental car companies. Lastly, a 1,000 gallon above ground tank supplies diesel fuel. Aviation fuel is purchased by the airlines and stored for uploading into planes by an independent vendor at a charge paid to the vendor. That vendor pays a fuel flowage fee to the Airport based on the gallons uplifted to the commercial aircraft. Support Facilities. Major Airport support facilities include the Baldwin Building, located east of the terminal building, houses key components of the Airport's electrical and