Project Descriptions, Justifications and Other Supporting Information Provided for Notice Inviting Public Comment to PFC Application C-00-VPS

Transcription

1 NOTICE INVITING PUBLIC COMMENT OKALOOSA COUNTY, FLORIDA NORTHWEST FLORIDA REGIONAL AIRPORT APPLICATION TO IMPOSE AND USE PFCS PFC APPLICATION NO C-00-VPS Pursuant to Section of the Passenger Facility Charge Regulation ("Regulation") Okaloosa County, Florida ("County") hereby gives notice and invites public comment (including comment by public agencies) to the above PFC Application No C-00-VPS to Impose and Use PFCs ("Application") under which the County seeks to levy and collect a $4.50 PFC at Northwest Florida Regional Airport ("Airport") for certain capital projects for the Airport. The levy and collection are to begin upon expiration of collection of the $4.50 PFC under PFC Application No C-00-VPS, currently estimated to be October 1, Pursuant to Section (a) and (b) of the Regulation, the County is making the following document available to the public (and public agencies) on the County's website at and the Airport's website at Project Descriptions, Justifications and Other Supporting Information Provided for Notice Inviting Public Comment to PFC Application C-00-VPS The above document includes the following: 1. A description of the projects the County is considering for funding by PFCs 2. A justification for each project the County is considering for funding by PFCs 3. The PFC level for each project 4. The estimated total PFC revenue the County will use for each project 5. The charge effective date for the Application 6. The estimated charge expiration date for the Application 7. The estimated total PFC revenue the County will collect under the Application The name of and contact information for the person within the County to whom comments should be sent are as follows: Mr. Jon Morris, Administration and Finance Manager Okaloosa County Northwest Florida Regional Airport 1701 State Road 85 North Eglin AFB, FL Tel: Ext 1005 Public comments (including those of public agencies) shall be made in writing and submitted to the County to the attention of the above contact person no later than thirty (30) days from the date of this notice, June 6, 2014.

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3 To: Persons Providing Public Comment to PFC Application C-00-VPS Date: June 6, 2014 Subject: Project Descriptions, Justifications and Other Supporting Information Provided for Notice Inviting Public Comment to PFC Application No C-00-VPS This document provides the background and scope of the above Application, including the information required by Section (a) and (b) of the PFC Regulation necessary to enable public commenters (including public agencies) to understand the Application and its projects and provide public comment thereon. The information includes the description, justification, PFC level, and PFC revenue for each project included in the Application and the charge effective date, estimated charge expiration date, and the total estimated PFC revenue the County will collect under the Application. 1. Background and Scope of the PFC Application The Application covers eighteen (18) PFC projects. Three (3) of the projects will use payas-you-go PFC revenue to fund the entire cost of the project: Project 7 - Acquire Ramp Sweeper for VPS Air Side, Project 10 - Construct Cell Phone Waiting Area on Access Roadway at VPS, and Project 18 - PFC Program Formulation and Administrative Costs. The other fifteen (15) projects will use a combination of either AIP Entitlements, MAP Funds, FDOT funds, pay-as-you-go PFCs, and/or PFC Bond Capital to fund project costs: Project 1 - Purchase 35 Acres of Land to Construct New Access System at CEW, Project 2 - Rehabilitate & Widen Taxiway A at CEW, Project 3 - Stormwater Master Plan for CEW, Project 4 - Stormwater Improvements at CEW, Project 5 - North Apron Expansion at CEW, Project 6 - Construct Quick Response ARFF Bldg to Serve VPS, Project 8 - Install Bag Lifts for Passenger Loading Bridges at VPS Gates B-1 through B-3, Project 9 - Replace Regional Boarding Ramps with Passenger Loading Bridges at Gates A-1 and A-2 at VPS, Project 11 - Construct Security Checkpoint Exit Lane Control System at VPS, Project 12 - Construct and Equip Air Traffic Control Tower at DTW, Project 13 - Terminal Area Rehabilitations & Improvements Phase 1, Project 14 - Complete Expansion of Second Level Pier Concourse, Project 15 - Rehabilitate Fuel Farm Tanks & Pumps, Project 16 - Acquire Long Term Lease on Land Comprising NWFRA, and Project 17 - Rehabilitate Taxiway D-1 & D-2. The County is currently authorized to collect and use a $4.50 PFC and $34,407,710 under PFC Application No C-00-VPS, as amended, a $4.50 PFC and $2,885,235 under PFC Application No C-00-VPS, a $4.50 PFC and $758,782 under PFC Application No C-00-VPS, as amended, a $4.50 PFC and $1,485,650 under PFC Application No C-00-VPS, and a $4.50 PFC and $1,290,146 under PFC Application No C-00-VPS, as amended. Total PFCs authorized for collection and use through Application No C-00-VPS are $40,827,523. Collections under the proposed Application will Page 1 of 24

4 begin after collection is completed under the currently authorized collections under the above five (5) applications. The additional $14,348,900 under this Application will increase total collection and use authority at the Northwest Florida Regional Airport to $55,176, Descriptions, Justifications, PFC Levels and PFC Revenue This section provides the PFC level, PFC revenue, a detailed project description, and an explanation of justification and need for the projects included in the Airport's Application. This programmatic and supporting information is provided in accordance with Sections , and (b) of the Regulation. This information also provides, where applicable, the specific documentation to show that projects qualify at the $4.50 PFC level. Projects are listed by PFC Project Number and the Airport s Capital Plan Project Number is shown in parenthesis prior to the project titles. PFC Project No. Descriptions, Justifications, and Supporting Information 1 (R-01) Purchase 35 Acres of Land to Construct New Access System at CEW PFC Level: $4.50 PFC Revenue: $937,107 Description: This project would authorize the use of PFC revenue to pay the bond capital and financing and interest cost on a 10-year loan used to acquire thirty-five (35) acres of land upon which to construct a new access system for Bob Sikes Airport and reimburse the County for certain pay-asyou-go expenses related to the acquisition and financing for this project. A sketch showing the preliminary alignment of the access is attached. The specific features of the proposed access will include the following: 1. Construct a new median cut and intersection with Highway 90 located a minimum of 1,000 feet west of the Fairchild Road intersection. 2. Construct a new two-lane airport access and circulation roadway approximately 1.0 miles in length from Highway 90 to John Givens Road. 3. Improve the intersection geometrics with John Givens Road to eliminate the slight offset. The County, in conjunction with the Florida Department of Transportation, has initiated conceptual design of this project and is now engaged in project definition, preliminary alignment for the access, and an environmental assessment. Page 2 of 24

5 Justification and Need: Currently at Bob Sikes Airport, traffic coming from the north of the County can access both sides of the airport directly from two-lane County Road 188 (aka Airport Road) via John Givens Road on the west, and from unpaved Fairchild Road on the east. Traffic wishing to access the airport from Highway 90 at the south must either make its way to the airport via local residential street network or circulate through downtown Crestview on Highway 85 to County Road a detour of nearly 10 miles. Fairchild Road is primarily southerly access for L3 Communications and over 120 residential home sites on the east side of the airport. Unpaved Hare Street is a substandard means of access from Highway 90 to the west side of the airport. Okaloosa County recognized the need to reroute and separate the heavy daily volumes of airport employees and industrial truck traffic away from the predominantly residential neighborhoods served by Fairchild Road and Hare Street. To accomplish this purpose, the County in August 2011 invested $788,000 to purchase this remaining 35-acre tract of vacant property which lies between the airport and Highway 90. That land corridor can now be utilized for a dedicated entrance road and access for Bob Sikes Airport. The scope of the proposed access system for Bob Sikes Airport will improve the public road network adjacent to the airport by providing enhanced, direct access to the airport from Highway 90. This direct access will reduce costs to the traveling public, relieve existing roadway congestion, improve safety for the residential street network, and provide better freight handling and distribution operations for industrial tenants at the airport. The proposed access system would eliminate the current inadequate local access which transverses through residential communities neighboring the airport and rural areas. The proposed new access would connect Bob Sikes Airport to major interstate highways. The access system is proposed to be funded through a combination of Florida Department of Transportation, local and AIP funds during Fiscal Years 2014 and The acquisition of this land for purposes of providing a primary access system for an airport is eligible airport development under Section (b)(1) of the PFC Regulation. The provision of this new access system for Bob Sikes Airport will substantially enhance the use and capacity of the airport by eliminating the inadequacies and limitation obstacles the existing access creates to full utilization and development of the airport. It will substantially improve the safety of the access in furtherance of the objectives within Section (a)(1) of the Regulation. Page 3 of 24

6 2 (R-02) Rehabilitate and Widen Taxiway A at CEW PFC Level: $4.50 PFC Revenue: $150,920 Description: This project involves the rehabilitation of the pavement of Taxiway A, the widening of the south end of the taxiway by 25 feet to correct a runway/taxiway separation deficiency as well as widening of the entire north half of the taxiway to accommodate larger aircraft planned to utilize the airport. It also includes the rehabilitation of taxiway lighting and the widening of a number of taxiway connectors to the runway. This project will authorize the use of PFC pay-as-you-go revenue to pay for the AIP/PFC eligible costs not otherwise funded from AIP funds under AIP Grant No and FDOT funds. Justification and Need: The age and condition of the existing taxiway and the taxiway lighting system, the need to correct the runway/taxiway separation deficiency, and the County's desire to widen the taxiway to handle larger aircraft scheduled to access the airport all are important safety and capacity justifications for this project. The above-referenced taxiway rehabilitation and improvements are AIP eligible development under Section (b)(1) of the PFC Regulation. The development is needed to maintain and upgrade safety and aircraft capacity on the taxiway and the airport, thereby preserving and enhancing capacity and safety of the airport and the national air transportation system in accordance with Section (a)(1) of the Regulation. The AIP ineligible portions of this project (i.e., the 25-foot widening at the north end of the taxiway) unrelated to resolving the runway/taxiway separation deficiency was funded by FDOT funds. 3 (R-03) Stormwater Master Plan for CEW PFC Level: $4.50 PFC Revenue: $271,751 Description: This project involved a master plan study to inventory existing and planned impervious surfaces at Bob Sikes Airport, inventory existing airport facilities available for attenuating stormwater run off, and the analysis and planning design of additional facilities required to capture, transmit, treat and attenuate stormwater from existing and planned impervious surfaces of the airport. The end product of this planning effort is a comprehensive Stormwater Management Plan for the airport necessary to comply with the regulatory and permitting requirements of the Federal Clean Water Act, FAA Regulations, and Okaloosa County and the Northwest Florida Water Management District's ("NWFWMD") water quality and environmental permitting requirements. Justification and Need: This planning project and subsequent stormwater facility development was necessary to permit existing impervious surfaces Page 4 of 24

7 on the aircraft operating areas of the airport to allow for continued and future operations on airfield operating areas and aircraft parking facilities at Bob Sikes Airport. The study is eligible airport planning under Section (b)(2) of the PFC Regulation. The planning study was necessary to permit the impervious surfaces of the airport's AOA and, therefore, is a required project to preserve and enhance the safety and capacity of the airport and the national air transportation system under Section (a)(1) of the Regulation. 4 (R-04) Stormwater Improvements at CEW PFC Level: $4.50 PFC Revenue: $1,571,639 Description: This project involves the construction of improvements recommended in Phase I of the Bob Sikes Airport Stormwater Management Plan. These improvements, including piping, transmission lines, retention and attenuation facilities, all required to capture, transport, treat and release stormwater from existing airport impervious surfaces plus those additional new impervious surfaces proposed to be constructed under the County's umbrella project "Rehabilitate & Widen Taxiway A". Existing impervious surfaces which would be serviced by these stormwater improvements include the existing runway and taxiway system at the airport, existing public and tenant aircraft aprons and aircraft parking areas. Additions to impervious areas include the widened areas of Taxiway A, widened connectors to Taxiway A, and the expansion of the North Apron. Eighty-one percent (81%) of the stormwater improvements to be constructed under the project are for AIP/PFC eligible aircraft operating and parking areas, either existing or constructed as part of the overall umbrella project, Rehabilitate and Widen Taxiway A. FAA funded only thirty-one percent (31%) of the cost of these stormwater improvements under AIP Grant Agreement No PFC pay-as-you-go and PFC Bond Capital will permanently finance the balance of the AIP/PFC eligible elements of the project. Justification and Need: In order for the County to obtain construction permits and environmental approvals required to initiate the project "Rehabilitate & Widen Taxiway A" at Bob Sikes, it was required to comply with Okaloosa County and the Northwest Florida Water Management District's ("NWFWMD") water quality environmental permitting requirements under the Federal Clean Water Act to have improvements in place to capture and attenuate stormwater runoff from existing and proposed new impervious surfaces at Bob Sikes Airport. The airport's impervious surfaces, including its aircraft operating areas (runways, taxiways and aprons) were not permitted and out of compliance with the applicable environmental laws and regulations. This requirement necessitated the County's preparation of a Stormwater Master Plan to develop an overall Stormwater Management Plan to recommend and implement facility Page 5 of 24

8 improvements to capture and attenuate stormwater from the airport's impervious surfaces. Existing impervious surfaces were out of compliance (i.e., were not permitted and did not have adequate capture and containment facilities to process stormwater) and reconstruction of existing facilities (rehabilitation of Taxiway A) and construction of new facilities (Widened Taxiway A and North Apron Expansion) could not be permitted until the airport's stormwater management permits and facilities were brought into compliance with the NWFWMD and County permitting requirements implemented under the Federal Clean Water Act. Therefore, the Stormwater Master Plan itself and the stormwater improvements constructed to place the airport in compliance with the County's and NWFWMD's regulations implemented under the Federal Clean Water Act were all required action necessary to implement the County's Umbrella Project "Rehabilitate and Widen Taxiway A". Therefore, the subject stormwater improvements are eligible airport development under Section (b)(1) of the PFC Regulation. The plan and the stormwater improvements implement safety and capacity elements included in the Taxiway A improvements and the North Apron Expansion. They are necessary to preserve safety and capacity at the airport and within the national air transportation system in furtherance of the objectives of Section (a)(1) of the Regulation. 5 (R-05) North Apron Expansion at CEW PFC Level: $4.50 PFC Revenue: $1,837,717 Description: This project involves the construction of an expansion to the north public use apron of Bob Sikes Airport. The expansion includes the addition of both 15,000 SY and 14,000 SY asphalt aprons north of the existing north apron. This apron expansion is shown in the currently approved ALP and Master Plan Update for Bob Sikes Airport. Justification and Need: Current and projected use of Bob Sikes Airport by aircraft, including aircraft being cycled through the airport for repair of airframe and power plant, has created the demand for additional public use apron to accommodate all types of aircraft. The addition of this airport apron infrastructure to accommodate the growing use of the airport by aircraft is necessary for the airport to fulfill its aviation mission. The apron expansion is eligible airport development under Section (b)(1) of the PFC Regulation. This project will add significant additional apron capacity to the airport, thereby enhancing capacity of the airport and the national air transportation system in furtherance of the objectives of Section (a)(1) of the Regulation. Page 6 of 24

9 6 (I&U-01) Construct Quick Response ARFF Building to Serve VPS PFC Level: $4.50 PFC Revenue: $155,236 Description: This proposed facility to serve the Northwest Florida Regional Airport consists of an approximately 8,600 square foot Airport Rescue and Fire Fighting (ARFF) station with three truck bays. This station will include bunk rooms, kitchen, office/operations space, fitness room, support rooms, and locker rooms. The site improvements include concrete truck access drives into and out of the truck bays, a vehicular parking lot with markings and signage, stormwater and utility improvements, and associated grading and sodding. Justification and Need: Under the County's current Joint Use Agreement ("JUA") with the United States Air Force ("USAF'), the Airport utilizes the flying facilities (runways and taxiways) of Eglin Air Force Base to operate Northwest Florida Regional Airport as a small hub commercial service airport. Under the JUA, the USAF provides aircraft rescue and firefighting ("ARFF") service for commercial aircraft operations. With the deployment of the Joint Strike Fighter at Eglin, Eglin firefighting personnel can no longer cross certain active taxiways without Eglin Tower clearance in order to provide coverage to the airfield's VPS commercial operations. In order to meet response time limits, Eglin has had to position ARFF personnel and equipment off on an active taxiway during VPS commercial operations. Construction of this satellite ARFF facility will allow Eglin to equip, staff and operate ARFF services in direct proximity to the VPS Terminal Area facilities and commercial operations and provide ARFF services and equipment to meet response times meeting FAA Part 139 standards. The construction of this ARFF facility is eligible development under Section (b)(1) of the PFC Regulation. The construction of this facility will facilitate the provision of ARFF services to commercial aviation utilizing the flying facilities of Eglin Air Force Base under the JUA between the USAF and the County. Therefore, the construction of the facility will preserve and enhance safety at the Airport and within the national air transportation system in furtherance of the objectives of Section (a)(1) of the Regulation. PFCs will fund the County's local share of this project not otherwise funded by AIP funds under AIP Grant No Page 7 of 24

10 7 (I&U-02) Acquire Ramp Sweeper for VPS Air Side PFC Level: $4.50 PFC Revenue: $73,000 Description: This project involves the acquisition of a 63-horsepower, 50- inch rotary ramp sweeper and vacuum to use to clear dirt, debris and foreign objects from the aprons and taxiways of VPS. This sweeper will replace a Tenant Ramp Sweeper which was purchased in 2001 and is 12 years old and in need of replacement. PFC revenue will fund the County's entire cost of this project. Justification and Need: This piece of equipment is eligible development under Section (b)(1) of the PFC Regulation. The removal of foreign objects and debris from the aircraft movement areas of the Airport will prevent foreign object damage to aircraft and enhance the safe movement of aircraft on the apron and taxiways of the Airport, thereby enhancing safety of the Airport and the national air transportation system pursuant to Section (a)(1) of the Regulation. 8 (I&U-03) Install Bag Lifts for Passenger Loading Bridges at VPS Gates B-1 through B-3 PFC Level: $4.50 PFC Revenue: $4,650 Description: This project will install hydraulic bag lifts on the passenger loading bridges at Gates B-1, B-2 and B-3 on the second level of the Airport's pier concourse. These bag lifts are now integral parts of passenger loading bridges ("PLBs"), but were not so when these bridges were installed in (Recently installed PLBs on Gates 5 and 6 have the lifts.) PFC revenue will provide the County's share of the local fund match on the AIP grant which will fund ninety percent (90%) of this project. Justification and Need: The lifts allow baggage to be placed into a wheeled carrier at entry to the PLB where it is lowered and stored in the aircraft baggage bay prior to aircraft departure. Upon arrival at the destination Airport, the wheeled carrier is again lifted to the PLB where baggage is then picked up by passengers upon deplaning the aircraft. The lifts are PFC eligible development under Section (b)(6) gates and related areas of the PFC Regulation. Using the lifts and wheeled carriers minimizes ground crew handling and expedites the movement of passenger and baggage through Airport facilities, thereby preserving and enhancing capacity of the Airport and within the national air transportation system under Section (a)(1) of the Regulation. Page 8 of 24

11 9 (I&U-04) Replace Regional Boarding Ramps with Passenger Loading Bridges at Gates A-1 and A-2 at VPS PFC Level: $4.50 PFC Revenue: $70,000 Description: This project will replace the Regional Boarding Ramps ("RBRs") as manufactured by Infra-Structures/East Island Aviation at Gates A-1 and A-2, which had to be removed from these gates because of safety concerns and the inability of the County to effectuate structural repairs, with new apron drive Passenger Loading Bridges ("PLBs"). Included in this project will be the re-placement of the existing 400hz/48VDC ground power units and the pre-conditioned air units onto the new Passenger Loading Bridges. The new bridge structure will consist of a ramped fixed tunnel, a rotating rotunda, telescoping bridge tunnel section, a cab with full controls for moving the bridge into position, vertical and horizontal drive system, baggage lift system, and a re-marking of the apron for the new parking positions associated with revised docking procedures which are designed to accommodate a larger mix of aircraft at these positions. These positions will be able to accommodate regional jets, narrow body jets, and a small percentage of turboprop aircraft. Justification and Need: This project will replace two (2) ground level RBRs at Gates A-1 and A-2 with two (2) new passenger loading bridges with ground power, conditioned air and baggage lifts. These bridges will allow these gates to be used to board regional jet aircraft, certain mainline aircraft (i.e., 717s), as well as turbo prop commuter aircraft. These bridges will allow these gates to be more fully utilized by commercial carriers. The existing RBRs were purchased from East Island Aviation which is no longer in business. Since installation, the RBRs have been a maintenance nightmare to the point that a work order had to be issued on a daily basis to review condition and operation from a safety standpoint. The County has had to rely on local welders to re-install the planks on both bridges and replace all the moving casters on four occasions. Recently, an airline was lowering the bridge inside the aircraft door seal to prepare for deplaning and the bridge snapped. The County has taken both RBRs out of service at Gates A-1 and A-2 because of safety concerns and will be hard-standing at these gates, when necessary, until the County can install the new PLBs. These passenger loading bridges are eligible terminal development under Section (b)(3) and eligible gates and related areas under Section (b)(6) of the PFC Regulation. These bridges will enhance the use of these gates, thereby preserving and enhancing capacity of the Airport and the national air transportation system pursuant to Section (a)(1) of the Regulation. Page 9 of 24

12 10 (I&U-05) Construct Cell Phone Waiting Area on Access Roadway at VPS PFC Level: $4.50 PFC Revenue: $125,000 Description: This Cell Phone Waiting Area ("CWA") project will consist of the design and reconstruction of an approximately 40-space parking area in an existing area of the West Credit Card Parking Lot at VPS as a cell phone waiting area for vehicles picking up passengers at the Airport. Only AIP/PFC eligible portions of the project are included for PFC approval. (WiFi and FIDs equipment will not be included as part of the project.) Project work will include the following construction items required to modify the existing parking lot for the proposed cell phone waiting area: 1. A new concrete island along the southern limits of the CWA to delineate the CWA from the Credit Card Parking Lot. 2. Removal of existing concrete curb, concrete sidewalk, and landscaping to accommodate the new one-way entry and exit drives. 3. Removal of existing concrete island in the southwest corner of the proposed CWA. 4. Removal of approximately 48 feet (24 feet for entry and 24 feet for exit) of the existing covered walkway. 5. Pavement remarking of the CWA and affected portion of the West Credit Card Parking Lot. 6. Placement of new asphalt one-way entry and exit drives and concrete curbs. 7. Installation of vehicular signage. Justification and Need: This vehicle waiting area, the CWA, will provide efficient access to the airport access and loop road. This project will provide a safe area off the Airport's access to allow vehicles to wait for passengers and receive cell phone calls while waiting for these passengers. Establishment of this CWA diminishes repeated access road trips to and from the terminal. This project is eligible development under Section (b)(1) of the PFC Regulation. The project will enhance capacity and safety of the Airport and the national air transportation system under Section (a)(1) of the Regulation by minimizing access road trips by these vehicles, thereby improving capacity and safety on the airport access system. Page 10 of 24

13 11 (I&U-06) Construct Security Checkpoint Exit Lane Control System at VPS PFC Level: $4.50 PFC Revenue: $337,500 Description: Due to changes in TSA rules, Northwest Florida Regional Airport has identified a need to develop a technology solution to monitor the Exit Lane located at the security check point in its Terminal Building. Currently the Exit Lane where arriving passengers exit at the security check point at the first level of the terminal is manned by a TSA officer to prevent unauthorized entry to the sterile area of the concourse facility. TSA has notified the County that it will no longer staff this exit. Although there has been a temporary suspension of TSA's removal of staffing at the exit, a technology solution to monitor the exit is necessary. The proposed Exit Lane reconfiguration and improvements will include modifications to the current exit area to include set of doors and electronic detection devices. The system will monitor the exit flow and any reverse movement will be detected and alarmed. Upon detection of reverse flow, alarms will be initiated and upstream doors will be locked to prevent persons from re-entering into the sterile area. These TSA Exit Lane modifications and improvements will include glass dividing walls/barricades, CCTV cameras, motion sensing equipment and sliding glass doors. TSA does not yet have a list of approved system manufacturers for these installations. TSA will typically test the system after installation and accept it based on their testing and performance criteria at the time. The testing method and criteria may vary from location to location and from local TSA authorities approving the installation. Reynolds, Smith & Hill ("RS&H"), the County's design consultant, with support from the Airport staff, will work with TSA to develop the system testing and performance criteria for these facility improvements at the time of the design so the improvement will be approved at the design level. The local TSA will be engaged to ensure that the testing and performance criteria are clearly defined, so the design documents can include them as a performance requirement by the system installer. This will expedite TSA's approval of the system installation barring any changes from TSA. Justification and Need: This project will provide a controlled, restricted departure exit at the base of the exit from VPS's pier concourse at the point of the TSA' security checkpoint replacing a manned exit by TSA. The project is eligible airport security improvement under Section (b)(1) of the PFC Regulation. It will provide terminal safety facilities to ensure compliance with the Airport's FAA Part 1542 Security Plan. The project will Page 11 of 24

14 prevent unauthorized access to a sterile area of he Airport Terminal, thereby preserving and enhancing security at the Airport and within the national air transportation system in accordance with Section (a)(1) of the Regulation. 12 (I&U-07) Construct and Equip Air Traffic Control Tower at Destin PFC Level: $4.50 PFC Revenue: $1,000,000 Description: Destin Airport's proximity to Northwest Florida Regional Airport/Eglin Air Force Base's, its increasing air traffic, and a diversified aircraft performance fleet mix has prompted Okaloosa County to propose the construction of a Visual Flight Rules (less than five (5) miles) Air Traffic Control Tower ("ATCT") at the Airport and to seek participation in the FAA Contract Tower Program. Destin Airport is a general aviation airport serving a wide range of aircraft business jets, military aircraft, all banner-towing airplanes, parasails, sightseeing flights, 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 control 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 An ATCT Siting Study was completed in 2012, subsequently, an Environmental Assessment was completed and approved by the FAA in July of The proposed ATCT is located 550-feet from the centerline of Runway 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. Justification and Need: In addition to the Destin BCA delay justification, justification for the safety concerns of operating at Destin without a tower and Eglin AFB operations also justify establishing an ATCT at Destin. The Class D airspace surrounding DTS is linked to Eglin AFB and requires pilots to contact Eglin Radar Control ("ERCF") when approaching or Page 12 of 24

15 departing to and from DTS. In addition, DTS lies within FAR Part 93; Subpart F airspace controlled by Eglin AFB. ERCF provides the primary approach, departure and clearance delivery services for DTS. DTS is subject to FAR Part 93 rules and aircraft, IFR and VFR, must obtain clearance or advisory prior to entering or operating within the Eglin Terminal Area. DTS runway 14/32 and Eglin AFB runways 12/30 and 01/19 have similar runway orientations in close proximity. Approximately 40 percent of DTS operations are IFR and DTS operations are within six miles of Eglin AFB military and commercial operations. Eglin has begun a comprehensive multi-force and multi-national training for the United States' new Joint Strike Fighter. By 2015, the projected completion and opening date of the DTS tower, Eglin AFB is projected to have over 30,000 annual military operations, approximately 60 percent of which will be training operations for the Joint Strike Fighter and 20,120 commercial air carrier operations. DTS will have approximately 52,000 annual operations, approximately 60 percent of which will be by business class aircraft. Construction of this ATCT at Destin is eligible airport development under Section (b)(1) of the PFC Regulation. The construction and operation of the Tower will significantly reduce ground delay at Destin, improve safety at Destin, and preserve and enhance the safety of military and civilian aircraft operations at Eglin and VPS, all as outlined above. The project will, therefore, preserve and enhance safety at Destin and VPS and within the national air transportation system in accordance with Section (a)(1) of the Regulation. 13 (I&U-08) Terminal Area Rehabilitations & Improvements Phase 1 PFC Level: $4.50 PFC Revenue: $127,500 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. Some of these Terminal Area facilities (access/parking and apron/taxiway facilities) were constructed prior to the 2003 construction of the VPS Terminal Building while the Terminal Building itself was constructed during FY2003 and completed in FY2004. Several of these Terminal Area rehabilitation projects are included here as part of a project titled as "Terminal Area Rehabilitations and Improvements Phase 1", while the project to Rehabilitate Fuel Farm Tanks and Pumps and the project to Rehabilitate Taxiways D-1 and D-2 are shown as discrete projects as Projects 15 and 17 respectively in FY2015 and FY2017. Page 13 of 24

16 The individual projects included within the overall Project 13 - Terminal Area Rehabilitations and Improvements Phase 1 include the following: - Terminal Area Flooring Improvements - Terminal and Parking Lot Lighting Improvements - Improvements to West Side Parking Apron These discrete individual projects are described and justified as follows: Terminal Area Flooring Improvements PFC Level: $4.50 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. Justification: Due to the cost constraints that were imposed on the initial Terminal Development Program because of design changes to the program necessitated by the post-september 11, 2001 security requirements, the County decided to temporarily provide optional carpeting as flooring to both the ticketing and baggage claim lobby of the Terminal Building. The main lobby entrance core to the first floor level of the Terminal Building, including the access lobby to the pier concourse maintained the terrazzo improvement as the preferred original design. The carpeted flooring in the ticketing and baggage claim areas is now in need of replacement, having exceeded its useful life, and the County plans to now complete the originally planned terrazzo installation in the ticket lobby and baggage claim area consistent with the overall first floor terrazzo improvement originally proposed for the Terminal Building. This improvement will preserve and enhance these areas of the Terminal Building for a period of 20 years or more. This project will preserve and enhance terminal capacity in the ticketing and baggage claim areas of the Airport, thereby preserving and enhancing capacity of the national air transportation system in furtherance of the objectives of Section (a)(1) of the PFC Regulation. The project is eligible terminal development under Section (b)(1) and (b)(3) and eligible gates and related areas under Section (b)(6) of the Regulation. Terminal and Parking Lot Lighting Improvements PFC Level: $4.50 PFC Revenue: $22,500 Page 14 of 24

17 Description: This project will replace the incandescent lighting fixtures within the public areas of the Terminal Building and the incandescent lighting in the Public Parking Lots of the Airport with new LED lighting installations. Justification: The age, increased maintenance, energy inefficiencies, and overall lighting quality of existing lighting in the public areas of the Terminal Building and Public Parking Lots will be substantially upgraded and improved by new, energy-efficient LED lighting. These lighting improvements will also improve public safety in the public areas and facilities in which it will be installed. This project will preserve and enhance terminal and public parking capacity and safety, thereby preserving capacity and safety of the national air transportation system in furtherance of the objectives of Sections (a)(1) and (3) of the Regulation. The project is eligible terminal development under Section (b)(1) of the Regulation and MAP eligible improvements and repairs to VPS's public parking facilities pursuant to Section 47118, Subsection (f) of the Airport Improvement Program as authorized in Title 49 of the United States Code. 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). Justification: The asphalt apron currently in place on the West Aircraft Apron is 13 years old and is requiring significant maintenance. In addition, the County plans to modify the parking positions on this side of the Terminal Building with the installation of two, new passenger loading bridges which will be capable of loading not only regional jets, but new projected regional aircraft of 90 seats or more, and mainline narrow body aircraft such as the Boeing 717 aircraft used by Delta. The strengthening of this pavement with this concrete overlay will allow VPS to handle the larger aircraft projected in the fleet mix for VPS at these aircraft facilities on the West Side of VPS's Pier Concourse. This project is eligible airport development under Section (b)(1) of the PFC Regulation and eligible gates and related areas under Section (b)(6) of the Regulation. This apron improvement will preserve and enhance the safe movement of aircraft and enhance capacity at the Airport, Page 15 of 24

18 thereby preserving and enhancing safety and capacity within the national air transportation system in furtherance of the objectives of Section (a)(1) of the Regulation. 14 (I&U-09) 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 C-00-VPS and AIP Grant No This project will add 5,500 square feet of space. The expansion 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. Justification and Need: Over the past two years, the airlines serving the Airport have begun a process to replace the 50-seat regional jets serving VPS with larger regional aircraft (90-seats or more) and mainline aircraft. Both FAA's Terminal Area Forecasts for 2013 and 2014 project this trend to continue. Currently, the Airport does not have an available gate to accommodate a new entrant carrier which would desire to initiate service to VPS with new mainline service aircraft (i.e., narrow body jets such as Boeing 717). All of the Airport's second-level gates (Gates B-1 through B-3 and Gates B-5 and B-6) are assigned to incumbent carriers Delta (2 gates), American, United and US Airways. The average number of daily operations at these gates is currently 8.5 operations a day, with the lowest level of operations per day (6) being at Gate B-6. Average, normal planning level of operations at a small or non-hub airport which is providing service to a carrier's connecting hub would be 6 to 8 operations a day. Although additional operations could be handled at some existing carrier occupied gates, availability would not be there at times a new entrant carrier might want to provide service to their hub or destination city. With the realignment of the lower level of the West Side of the Airport's Concourse to essentially a two-gate facility, the completion of the third gate at the end of the second level of the Pier Concourse on the East Apron is needed and justified and will return the Airport to the original 9-gate facility which was planned for VPS in its initially designed Terminal Development Program. (This initially planned 9-gate facility was scaled back in the 2003 development due to cost constraints occasioned by the events of September 1, 2001.) The proposed project is eligible Terminal Development under Section (b((1) of the PFC Regulation and eligible Gates and Related Areas under Section (b)(3) and (6) of the Regulation. The project will enhance terminal and gate capacity at VPS and preserve and enhance Page 16 of 24

19 capacity of the national air transportation system under Section (a)(1) of the Regulation by providing additional second level aircraft departure facilities for a new entrant airline. 15 (I&U-10) 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. Justification and Need: Evidence of corrosive infiltration in the tank and piping system of the fuel farm have alerted the Airport to the need to rehabilitate the tank storage and piping system to protect the integrity and quality of fuel stored in the system. In addition, the pumps for the system require retrofit and rehabilitation because of experienced problems with reliability of the pumping system. The repair and improvement of airport aviation fuel farms is eligible MAP development under Section 47118, subsection (f), of the Airport Improvement Program as authorized under Title 49 of the United States Code. The proposed improvements to the Airport's fuel farm will preserve and enhance the safe movement of aircraft at the Airport, thereby preserving and enhancing the safety within the national air transportation system in furtherance of the objectives of Section (a)(1) of the PFC Regulation. 16 (I&U-11) 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, The proposed New Lease would replace the existing lease ("Existing Lease") which is an operating lease which expires July 16, 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 Page 17 of 24

20 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 Airports Program designation (Fiscal Years ) 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 a new long-term JUA of 50 years or more would assure that VPS has a longterm, 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"). Further justification for the proposed long-term, capitalized New Lease is provided in the justification and need section which follows. Justification and Need: The proposed long-term, capitalized New Lease has both financial and operational justifications. Financial Justification Financial Justification for the proposed long-term, capitalized New Lease with the USAF includes the following: 1. Recent Existing Lease and JUA rate increases have substantially impacted VPS's airlines' costs. Existing Lease and JUA payments over the balance of the Existing Lease are estimated to average $504,000, representing a cost of $1.41 per passenger enplaned at VPS. The Existing Lease and JUA payments allocable to the Airport's Airfield Area costs are equivalent to approximately fifty percent (50%) of the net cost of the current airline landing fee, approximately $.53 per thousand pounds of the airlines' landed weight. Page 18 of 24

21 2. Paying for the airlines' access to Eglin's flying facilities ("Eglin Flying Facilities") and rentals for NWFRA land interests through operating charges places VPS at a competitive disadvantage with Pensacola ("PNS") and Panama City Beaches ("ECP") airports. These airports' land costs and capital facility costs for gate and airfield facilities are paid for through Federal AIP funds and Federally-authorized PFCs. (Panama City's new airport received all its 4,000 acres of land free from St. Joseph Land Company, $42 million in Federal AIP funds, and $100 million in FDOT funds to construct airfield and terminal facilities.) These Federal and State grant and PFC funded facilities are not included in airline operating costs or airline fees at PNS and ECP as USAF land rentals and JUA fees are at VPS. 3. As noted in the project description above, the proposed New Lease would allow the County to "capitalize" these land costs through a "capital lease" which would allow the County to pay for these costs through a one-time "up-front" capital lease payment (representing the lesser of the fair market value of the leasehold or the net present value of annual lease rental payments). These payments would be eligible to be paid for through AIP grants and PFCs. The USAF would receive the same economic consideration as they do currently through an "up front" lump sum payment for the capitalized lease as an alternative to receiving annual operating lease rentals. The 5-year ACIP included within NWFRA's current MAP designation included MAP funding for making a capitalized lease payment for the proposed New Lease. 4. The County's proposal would allow VPS to reduce average annual operating costs (to be incurred over the term of the Existing Lease) by approximately $554,000 by eliminating the payment of periodic operating lease annual rentals payments. The proposal to capitalize these payments and pay for them through AIP grants and PFCs will allow the Airport to be more cost competitive to PNS and ECP. 5. As previously noted, assuming that the County received a long-term, capitalized New Lease of a term of 50 years, the County and the airlines would recognize an operating cost savings projected at approximately $45 million over the term. Operational Justification The operational justification for the proposed long-term, capitalized New Lease includes the following: 1. The USAF Lease and JUA are currently separate documents. The Existing Lease, as recently extended, expires on July 16, 2038 and the JUA expires on February 27, 2031 (having less than 17 years to Page 19 of 24