Aviation Department Board Workshop December 7, 2010 1
Agenda North Perry Airport (HWO) FLL Economic Impact & Traffic Update Terminal Area Forecast FLL Airport Layout Plan & Master Plan Update Runway 9R/27L & Financing Plan Terminal Modernization Terminal 4 Inline Baggage Projects Airline Lease & Use Agreement Concession Program Action Items 2
North Perry Airport (HWO) Update Proposed development of 10 acres in the NE corner by Bobby s Landing, the current Fixed Base Operator (FBO), to include expansion of the FBO, T- Hangars and a Restaurant. Proposed development by the Adler Group of 12 acres in the SW corner for non-aviation retail use. Proposed development by Diversified Aviation NP, LLC of 12 acres in the SE corner for T-Hangars and offices. Landscape Enhancement at all entrance points to airport Fencing Replacement to enhance Security Elevated Guard Lights (wig wags) to enhance runway safety Runway Overlay for 9L-27R and 18L-36R Taxiway N Rehabilitation 3
HWO Projects 4
Employment 8,800 jobs on-airport 28,100 related off-airport Annual Economic Impact $358 million in on-airport wages $2.4 billion in off-airport wages, indirect, induced impacts (multiplier effect), and other economic impacts Total annual economic impact of $2.7 Billion South Runway Expansion will generate an estimated 11,000 jobs over the 4-year life of the project* * Regional Input-Output Modeling System (RIMS II), 2008
Traffic Update: Jan-Oct 2010 Total traffic 17,411,841- up 5.6% Domestic traffic 15,581,885 - up 4.5% International traffic 2,810,235 up 12.7% FLL ranked 1st among large US Airports for total traffic growth for September 2010 vs. 2009, up 10.3%. September and October both set all time FLL traffic records for those months. Seats per departure have increased from 114 in 2005 to 134 in 2010.
Terminal Area Forecast (TAF) FAA forecast data of airport enplanements and operations Created on an annual basis Is used to assist the FAA and Airports for planning airport improvements Forecast Period is through the year 2030 7
Enplanements & Operations 1995-2020 Sources: 2008 and 2010 Draft Terminal Area Forecast 16,000,000 450,000 15,000,000 425,000 14,000,000 400,000 13,000,000 375,000 12,000,000 350,000 Enplanements 11,000,000 10,000,000 9,000,000 8,000,000 310,000 Operations = average 6 minute delay 325,000 300,000 275,000 Operations 7,000,000 6,000,000 5,000,000 4,000,000 250,000 225,000 200,000 175,000 Enplanements 2008 TAF Enplanements 2010 TAF Operations 2008 TAF Operations 2010 TAF 3,000,000 150,000 8
Airport Layout Plan (ALP) and Master Plan Updates Airport Layout Plan: Board authorized transmittal of an updated ALP to the FAA in December, 2008 Approved by the FAA in January, 2009 Another update will be forthcoming in 4-6 months Master Plan: Last updated in 1994 Board authorized transmittal of an updated Master Plan to the FAA in May, 2010 Approved by the FAA in September, 2010 9
Approved FLL ALP 10
Airfield Refinement Plan 11
Runway 9R/27L Current Status: Completed 30% design Completed draft Bridge-Structure Design Criteria Package Negotiations with FDOT and FEC started Began discussions with South Florida Water Management District Permit application submitted in November 12
Runway 9R/27L Profile Review Extensive Coordination with Key Stakeholders FAA Tower Airlines Port Everglades Due to the length of the runway, the following engineer drawings exaggerate the vertical scale to enhance readability. They do not reflect actual conditions. 13
Base Runway Profile 14
Base Profile Issues Obstructions from FPL Lines and Port Cranes Part 77 - Penetrations of.14 FPL/8.1 Port One Engine Inoperative 2.1 FPL/25.5 Port Result would be a major payload reduction for users of the runway. Due to elevated runway at mid-point of the airfield, taxiway access would be difficult. Lengthy closure or restrictive use of runway13/31 during construction. 15
Revised Runway Profile 16
Benefits of Revised Profile Obstruction Issues Minimized or Eliminated Runway at grade for first 2000 (9R) Improved efficiency by at grade access to taxiways No significant change in earthwork requirement Allows runway 13/31 to remain open significantly longer during construction 17
Base/Revised Profile Comparison FEIS Profile 30% Design Profile 18
Characteristics of Existing Runways Threshold Elev. Runway Threshold Elev. Runway Location Runway Difference Length Location Runway Difference Length Las Vegas 7L/25R 146' 14,510 Memphis 18R/36L 33' 9,320 7R/25L 109' 10,526 18C/36C 70' 11,120 1R/19L 97' 9,775 18L/36R 57' 9,000 1L/19R 93' 8,985 Denver 8/26 60' 12,000 Seattle 16R/34L 59' 8,500 17R/35L 57' 12,000 16C/34C 66' 9,426 17L/35R 42' 12,000 16L/34R 86' 11,901 Charlotte 18C/36C 50' 10,000 Saint Louis 12R/30L 44' 11,019 5/23 41' 7,502 12L/30R 76' 9,003 Billings 10L/28R 96' 10,518 11/29 62' 9,001 7/25 103' 5,501 Atlanta 9R/27L 41' 9,001 Raleigh 5L/23R 42' 10,000 9L/27R 41' 11,890 Nashville 2L/20R 50' 7,703 8R/26L 29' * 10,000 Ft. Lauderdale 9R/27L 57' 8,000 19
Possible Design for Tunnel 20
Runway Financing Plan The airlines have approved the runway financing plan based on a cost of $791 million. The FAA s PFC approval is anticipated no later than March 2011. The federal letter-of-intent (LOI) should be finalized before the end of this calendar year. 21
Sources & Uses of Funds - New Runway ($ Millions) Sources - PFC's $971.2 FAA - LOI 250.0 FDOT - Grants 71.7 FAA - Grants 17.1 BCAD Cash 5.5 Total $1,315.5 Uses - Project Outlays $791.0 Interest Expense & Issuance Costs 524.5 Total $1,315.5 22
Capital Improvement Budget - 5-Year ($ Millions) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Total Airfield $777.1 $0.0 $0.0 $30.0 $0.0 $807.1 Terminals 61.1 334.2 65.8 20.8 6.3 488.2 All Other 9.6 7.2 21.9 38.4 9.4 86.5 Total $847.8 $341.4 $87.7 $89.2 $15.7 $1,381.8 * Approved by the Board and the Signatory Airlines 23
Operations & Airline Rates ($ Millions) Budget Forecast FY 2011 FY 2014 FY 2017 FY 2020 FY 2025 Non-Airline Revenue $140.7 $157.3 $174.3 $194.3 $217.0 Expenses (127.3) (150.6) (172.3) (207.4) (241.1) Debt Service - GARB (58.9) (48.2) (48.2) (48.2) (34.7) Other Rev/(Exp) (11.9) (23.2) (56.3) (69.6) (70.1) Airline Requirement $57.4 $64.7 $102.5 $130.9 $128.9 Enplanements (Millions) 11.1 12.4 13.7 15.1 17.5 Cost Per Enplanement $5.19 $5.20 $7.48 $8.66 $7.36 24
Typical Cruise Season Scenes 25
Typical Cruise Season Scenes 26
Terminal Modernization and Central Terminal Modernization: Processing On-going consultation between Airlines, key tenants, and BCAD Concepts developed for T1, T2, T3, and expansion of T4 to 14 gates Key objectives are: Support expanded concession opportunities Improve customer experience during peak periods Central Processing: Palm Garage Terminals are budgeted but the central processor is not Evaluation over the next few months with presentation back to the Board in spring of 2011 27
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Terminal 4 Current status: Completed Project Validation Report Developed Conceptual Designs of Alternatives in developing the Terminal area Contract in place with Cummings-Balfour Beatty to perform pre-construction services to support the Architect s design phase Contract in place design of the first phase of the hydrant fuel line relocation and apron work ahead of T4 construction 29
Terminal 4 The cost of the full Terminal 4 expansion is in the Aviation Department s capital budget. Airlines have approved design of the full expansion but have only authorized construction of the Western expansion. BCAD anticipates the airlines will approve construction of the full expansion. 30
Terminal 4 31
Terminal 4 32
Terminal 4 33
Terminal Modernization Interior Clarification Joint Project with Cultural Division Through Public Art and Design Program process selected Barbara Hochstetler-Fentress as consultant; previous interior design projects include Denver and Seoul First phase focused on de-cluttering and organization of the facilities Second phase focused on establishment of interior design standards (colors and materials) 34
Terminal Modernization Interior Clarification Implementation Over 30 recommendations short and long term Issues include standardized seating, signage, flooring materials, and art placement Adoption and implementation of some items inprogress Proto-type restroom under construction with new standards Completion of an Interior Design Standards Manual in early 2011. 35
Terminal 1 Inline Baggage Project Update on Terminal 1 Inline: Partnership with Southwest Airlines Southwest is the project manager responsible for construction and commissioning System will be turned over to BCAD upon completion for operations and maintenance Project budget is $32 million Project is currently ahead of schedule and under budget 36
Inline Baggage Projects for Terminals 2- Two possibilities decision in early 2011 1. Next Stage Investment (NSI) proposal to Transportation Security Administration (TSA) Pilot Program: 4 Delta would serve as the project lead with facilities turned over to BCAD for operation and maintenance. TSA would negotiate with the airport for an operating lease over 8 years. 2. Delta and JetBlue would enter into agreements similar to Southwest in Terminal 1, to develop inline systems County would enter into an agreement with the TSA to fund the project. Both approaches will utilize BC Procurement and Small Business processes similar to T1 37
Airline Lease & Use Agreement Current Lease and Use Agreement is 25 years old and expires September 30, 2011. Discussions are ongoing with airlines on new Lease and Use Agreement BCAD Objectives include: Updated Environmental, Liability and Bankruptcy Language 5 Year Agreement Maintain Residual Methodology Enhance management flexibility 38
Airline Lease & Use Agreement BCAD Objectives, continued: Terminal: Remove Exclusivity Enhanced Control of Gates Airfield Non-AMT Airfield Cost Center (Estimated $100 million Savings) Equal Access Peak hour pricing during construction Minimum landing fee 39
Concession Consultant Accomplishments Completed Existing Conditions Study, Airport User Survey, and Local Trends Analysis Developed concession space needs analysis Prepared planning and design principals report in support of BCAD space planning efforts Prepared analysis and recommendation for solicitation strategies for food service concessions Participated in the development of the Draft Concession Contract, Draft RLI for Food Service Concessions in Terminals 1 and 2, and Draft Concession Contract for CA-One 40
Examples of Concession Consultant Trends Analysis Report Work Products Identified numerous opportunities for local food service brands to create a sense of place and bring locals to the Airport for all types of operations, including fast casual, quick service, and sit down. Planning Principals Report Used by BCAD Planning staff, report identifies Major Planning Principals and consequent design issues. Impact of holdroom and restroom design on concessions Importance of signage and wayfinding to successful concessions Need to properly configure stores to optimize passenger exposure 41
Examples of Concession Consultant Work Products Concession Space- Current vs. Projected Difference Between Low Demand vs. Existing Difference Between High Demand vs. Existing Existing Projected Demand -- Low Projected Demand -- High Terminal 1 Total 27,502 38,350 45,400 10,848 17,898 Terminal 2 Total 19,733 19,850 23,300 117 3,567 Terminal 3 Total 25,952 60,700 67,700 34,748 41,748 Terminal 4 Total 10,806 34,900 40,900 24,094 30,094 Total Airport 83,993 153,800 177,300 69,807 93,307 42
Concession Consultant Next Steps Complete concession plan upon receipt of Terminal plans Terminal plans dependent upon Board decisions regarding Central Processor and Terminal 4 Continue passenger surveying efforts (2x per year) Assist in development of plans for the Central Passenger Processing facility Financial impact analysis on existing contracts and facilities Commercial facility placement Participate in the development and execution of other concession contracts 43
Concession Outreach Meeting Held August 12, 2010 Provided opportunity to introduce small and local vendors to master concessionaires who have contracts or may respond to solicitations Attended by current food service and retail master concessionaires, and seven other food service master concessionaires Approximately 145 people attended 44
General Lease Terms for All Concession Contracts Lease Terms will apply to all food service, retail and duty free retail contracts at the Airport Proposed lease clauses to ensure performance, accountability, and active monitoring: Disincentive Fees for failure to perform or adhere to contractual requirements Monthly Performance Audits to be completed by BCAD ACDBE monitoring and reporting requirements Operating hours established to ensure customer service when there are passengers in the Terminals 45
Proposed CA-One Lease Extension Initial lease extension through June 30, 2015 CA-One will give up all exclusive rights and will cooperate in affecting the changeover to a new concessionaire in Terminals 1 and 2, once selected. Minimum investment requirements for Terminals 3 and 4, with opportunity to amortize investment Lease will include terms to ensure performance and accountability. If CA-One performs successfully, staff will bring to the Board a secondary lease extension for approval. 46
Proposed Concession Time Line December, 2010 Provide draft contract to CA-One and schedule Sunshine Negotiation Meeting(s) 1 st Quarter 2011 Complete negotiations with CA-One and schedule contract for Board review Prepare submittal of RLI and draft contract for Terminal 1 and 2 food service concessions for Board Review Prepare draft contracts for negotiations with AMS (Hudson News JV Terminals 1 and 2), Paradies JV (Terminals 3 and 4) and Broward Duty Free (all Terminals) 47
Proposed Concession Time Line March 2011 Issue RLI for food service in T1/T2 April 2011 Commence negotiations with AMS JV, Paradies JV and Broward Duty Free JV for five (5) year extensions beyond current termination date Will allow BCAD to update lease terms to current standards 2 nd quarter 2011 Submit retail and duty free retail contracts to Board for approvals 48
Proposed Concession Time Line Late 2011 Submit T1/T2 food service operator contract to Board for approval Prior to July 1, 2012 New T1/T2 food service operator completes planning and permitting activities July 1, 2012 New T1/T2 food service operator commences operations 49
Action Items Approval of RFP for U.S. 1/FEC RR Structures, including deviations from standard to include FDOT best practices Construction Project Managers for Runway and Terminal 4 Amendment with PGAL-Zyscovich for Terminal 4 full design Hard Bid Western Expansion construction Central Processor decision Terminal 2-4 Inline decision Revision to Airport Layout Plan Concession Program actions as outlined 50