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[6:02] ? ? >> Always a pleasure to be
[6:16] with you. And we'll go through a budget presentation with me to table today is our director
[6:21] of Finance, Priscilla Diaz and our budget manager. I think most of you know, I know a
[6:23] school. When the numbers really hard. I just look at these guys and they can get us
[6:29] through on the number side of the house. So ready to go, Mr. Discuss. So commissioners this
[6:43] this presentation slightly different maybe what we've done in the past because
[6:45] there's a couple of really key issues that we need to talk about today. Agenda and table
[6:55] of contents. We broke this up into 3 different pieces. The first piece is to come back to
[7:00] the terminal 5 program to give you a little bit of background. An update where we
[7:06] are with terminal 5 and the work we've been doing since we met with you last August at
[7:09] the Budget workshop and the things that we still needed to complete in order to move
[7:14] forward with the program. The second piece really where spent some time to talk about
[7:19] the airline lease and use agreement and the Terminal building lease agreement,
[7:24] their companion documents. This is the culmination of the negotiation with your lines or
[7:30] bringing back to think we've landed really good spot in order to move the airport
[7:34] forward and we'll go through the elements of the deal and then that leads into the Fy 27
[7:40] aviation budget. We lined it up this way because terminal 5 in the additional costs for
[7:46] Terminal 5. It's going to be actually part of the approved projects for the airline least
[7:51] and use agreement that they support the increases in the cost. And then ultimately the
[7:56] Fy 27 budget is geared off of the elements or the articles that are inside the agreement.
[8:04] So we have to take it in that order in order for it to make sense with that, we'll just
[8:07] jump right in. To terminal 5. Mr. Bring everybody back to that program structure for
[8:17] Terminal 5. How it's put together. Broward County Department has general program
[8:22] oversight. We retain the rights for the design, but we've contract, if you will,
[8:27] in a sense with JetBlue to actually oversee the program, call the program developers,
[8:33] if you will. They have the implementation responsibilities. We execute
[8:39] that through the existing terminal building. Lease agreement. After that, JetBlue
[8:47] contracts with 4 different entities doing the program management Gensler was the
[8:53] design. Team Hunt Moss is the contractor and Keith will be providing the inspection
[8:59] services. The fund's obviously come from the airport and they funnel through. JetBlue
[9:06] handles the contracts and then JetBlue summits for reimbursement into into the
[9:09] county. So in 2021, the Terminal 5 program definition document was completed,
[9:23] defining the preferred concept layout the activity levels. Design considerations in the
[9:29] preliminary cost estimate of 306 Million. 2023. The project budget increase to 404 million
[9:36] increase was driven primarily by modifications. Construction definition utility
[9:42] infrastructures. That was previously identified. Unforeseen circumstances are
[9:46] signatory airlines agreed to cover the majority of the cost. what we refer to as a
[9:51] majority interest foderingham I I vote as you may recall airlines under our existing
[9:57] agreements, a voting rights on our Capital Project. Anything over $150,000. They get to
[10:02] vote on because the debt service is covered through our rates and charges. We'll talk
[10:07] about that. How that's going to change in the new agreement. 2024. At the 60% is
[10:13] eye level and resulted in a project increased 654 Million. That increase again driven by
[10:18] further program definition advancement of the design, global economic impacts,
[10:23] including escalating cost materials and services. remainder of 2024. 2025 that
[10:29] he 5 project team was actually engaged really reviewing design closely and all the
[10:35] details to ensure alignment with the original program definition document as well as
[10:38] relevant industry cost additional contingency funds were incorporated increasing.
[10:44] The total estimated project cost of 699 million that we still based on the 60% design.
[10:49] The signatory airlines again agreed to cover the cost to be and then my vote in June of
[10:56] last year. That is what we brought to you in August. When we presented, we said this is
[11:00] where we are right now. But we're still working through the design and our next steps
[11:04] were to complete that he 5 to sign to 100%. JetBlue and Hunt Moss produce the final
[11:10] guaranteed maximum price from what we've heard Tuesday FGM P for review and approval and
[11:15] then assemble and submit conform design drawings for final permitting. Where are
[11:22] 100% design was completed by the designer on December 4th of this past year. Hamas began
[11:31] pricing in betting with the traits and subcontractors and JetBlue received the proposed
[11:35] final GMP on April 27th 2026. JetBlue and be cat commenced industry view of the
[11:44] construction packed packages and pricing after extensive reviews and analysis. An inch
[11:49] deep benchmarking JetBlue finalize negotiations with Hamas. And tonight which
[11:53] resulted in an F G M P 702 million, 338,000 for construction and overall
[12:02] program costs of 129 million dollars factors contributing to the overall cost increase.
[12:08] Most are based on 100% design plans act rather natural bids. All right, Jamie, rather 60%
[12:14] design levels continued industry costs, escalation inflation. Cost is based on
[12:20] approval plans from the authority having jurisdiction hj working the building, Code
[12:24] services and a revised construction schedule longer than the original planned
[12:30] estimate. Back when we did this and the 2021 time frame and what does that look like?
[12:38] Program costs in August of 2025. 6.99 August of 26, 8.29. Is the overall program costs
[12:46] adding that is with the final guaranteed maximum price building square footage
[12:50] increased by about 10,000 Square feet is design was was developed as 100% level. The
[12:57] cost per square foot has risen, as you can see right here from 14, 45 to 15. 31.
[13:04] Instead of the 6% design plans at that figure, we're working off 100% design plans right
[13:09] now and the estimate, again, from 890 days to take to complete it is coming in with
[13:15] the negotiations between JetBlue loss at 1277 days. The construction schedule
[13:22] assumption notice proceed with the October of 2026 or as soon as have approval to be able to
[13:28] move forward with a substantial completion of March 2030. You can see some
[13:33] renderings what the facility looks like over on the right hand side. You've seen work
[13:37] possibly going on out there at the airport. That was early work you've been doing a lot
[13:43] of utility work and what not great as we are finally design for the building which stands
[13:51] to the east of Terminal 4. Terminal 5 is connected to terminal 4 a connector, which
[13:57] is a bi-level connector, contains both a secure as well as a non-secure side, if you
[14:03] will. So the folks that come from the garages get over to terminal 4. We can have
[14:10] passengers who cleared security at Terminal 4 terminal 5, be able to flow
[14:13] back and forth just like they can between terminal 3 in Terminal 4 today. And another
[14:19] program that you are aware. I think that's going on airport is what we call a Terminal
[14:22] connector project, which will connect terminal one to 2 and 2 to 3 behind security. That's
[14:27] a 279 million Dollar Project. We'll finish the first piece of that to connect 2, 3, next
[14:35] summer. And then the following spring in 2028, will complete that he wanted to 2 and we
[14:40] will have full security of all our terminals behind security, much like other airports go
[14:46] forward. Just to give you an indication what's happening around an industry. put this
[14:54] together. You've seen some of this admission for with the show. How costs escalate from
[14:58] projects across the board. FL Terminal 5 is is up at the top. The 4 forward to the 29.
[15:08] Miami. Hard at work on Concourse K initial project estimate 600 million that is
[15:14] now looking like 746 Million. We anticipate that and it will also go further north as we go
[15:20] forward. Concourse T 827 million looks like it's projected to be 1.1 billion.
[15:29] And that's still in the procurement and design. Build phase. See what happens with
[15:31] the costs there. Tampa Airside E 787 million up to 1.5 billion at this point time
[15:41] zone or construction. Jacksonville, Concourse B 344 up to 440 units under
[15:48] construction with anticipated completion 2027 couple other ports and projects meant to go
[15:52] through every one of them. We want to highlight the ones that are in the orange there
[15:55] they are. Florida airports. So just from a geographical perspective to to indicate
[16:01] what cost are like in our region. Na is Nashville. I ad Washington Dulles and DFW at
[16:08] the bottom there. Little miss late in bottom 1.6 billion was their first phase the
[16:17] 4 billion is a is a is all their faces, which actually is a doubling of the number of
[16:22] cases in that project. Mark. Thanks quick question. Just. >> in 2023 with estimated
[16:30] project cost of Fort Lauderdale, 404 Million. And then 2, 3, 2, years later, it
[16:35] more than double. What was that because of expansion or because of price increases.
[16:43] >> Escalation in inflation. As we came out of COVID particularly in South Florida,
[16:47] we saw numbers that reported last year. But we are also working mayor with not 100%
[16:53] design drawing. So as the time was refined and they were able to drill down further and then
[16:58] ultimately it becomes a matter of the construction firm. At this point, joint venture
[17:07] between Hamas sitting down with every single one of the subcontractor traits and
[17:12] getting their bids and negotiating. The price is up for their bids. And there are
[17:18] representatives from from JetBlue who is managing the project here with us today. We
[17:22] have been present this to the airlines so that it wasn't this isn't the airport or the
[17:28] county telling the airlines the price of the project going up. This is one of your
[17:31] colleagues who is actually building is telling you that it's going up.
[17:35] >> You may not know this, you know, travel quite a bit. A lot of the Fort Lauderdale and
[17:40] I'm And and and I am most senior there's I mosaic for for JetBlue. So there such a
[17:43] great airline like only want to talk good things about JetBlue. Just great, great,
[17:49] great, great airline. >> The the issue that we wanted to bring up and it's
[18:02] really can to the police and use agreement. Negotiations. Is that each one of the stages
[18:09] where costs have increased our business partner. Airlines have continued to stay with us
[18:13] and continue to vote to cover the cost of the of the terminal as we move forward.
[18:18] None of us like the cost increases, but we definitely need to gates at our airport.
[18:21] So we're anxious to get moving on this and get it done as quickly as possible. And
[18:29] that's is. So how do you pay for the overall and cost increases? Commissioner? it's
[18:40] a champion of trying push us to make sure that we got our deal done with our airlines,
[18:45] the governing document, if you will, between the airport slash county and the airlines.
[18:51] Are these 2 documents, the least use agreement as well as the Terminal building lease
[18:54] agreement. The history of this. If you go back. Turn back the hands of time. Why do
[19:00] we need these documents? Well, they're required by code Section 2.40, to Brown County
[19:06] code requires that county commissioners authorize any commercial activities or
[19:09] occupation of the airport or any portion thereof. Police and use agreement sometimes
[19:15] referred to as incidents where agreement is executed their lines that meet certain
[19:19] activity, thresholds and minimum space requirements, meaning you have fly. So many
[19:26] flights receipts through our airport. But you also have to lease a certain amount of
[19:28] space for us that helps us make sure that we need a revenue requirements. As for
[19:31] going forward. Along with the Terminal building agreement that sets forth the lease
[19:38] terms and conditions defines what the uses of the airport facilities are in the rights
[19:42] of the parties. They become really the documents that we to establish these
[19:47] relationships. The low as we sometimes refer to it typically establishes the
[19:53] financial convinced to the airport. Specially has released the capital
[19:56] development. It also establishes the methodologies for how we calculate airline
[20:01] revenue requirements to drive your port rates and charges landing fees. Terminal
[20:04] building rents and other use charges. The agreements that were currently in today were
[20:10] originally approved by the Broward County Commission in 2011 for a period of 5 years.
[20:14] Commencing October. 1st, when 11 but were amended in 2014 extending agreements for a
[20:21] period of 10 years. And that was done before the expiration. The agreement,
[20:26] which brings us up to September 30th of 2026. in preparation for that
[20:30] expiration. We began working with your lines in 2023. We initiated discussions with the
[20:37] signatories, also referred to as the Airline Airport affairs committee or AAA C We
[20:42] established the framework negotiations on new agreements identify key objectives and
[20:47] issues for both sides after extensive and collaborative efforts in Syria. It ramped up
[20:55] considerably in 2024, the airlines hired a liaison office watch out for their
[21:02] their interests. And we had dozens and dozens of meetings with various multiple
[21:04] participate in a tease. At this time. The parties have concluded their negotiations.
[21:08] We are pencils down and the feedback from this commission, the cat is prepared to Smith
[21:14] Agreements for the Commission's review and approval with the commencement
[21:18] date of October. 1st 2026. What's in the agreement? Here's the framework. 8
[21:25] different signatory carriers, JetBlue Delta, Southwest United American Legion
[21:30] Frontier and Air Canada. Pull together and hire an airline liaison office. Clearly we
[21:39] couldn't negotiate with 8 different airlines who want a different things and try to
[21:43] meet everybody's needs. We told him you're going to have one negotiating position on
[21:47] our side. They needed to get together to figure out their negotiating positions. The
[21:53] airlines on our side behind County Attorneys risk Management County ministration
[21:58] fast E and a team of consultants County Attorney Myers. Your team is just
[22:06] absolutely phenomenal behind us led by Israel for And Kelly rushed primarily, but many
[22:12] attorneys were involved in different levels. Michael Owens, folks. Participating
[22:17] from different parts of the county risk management was involved, finance, even
[22:23] farmers group, along with our consulting group. Again, all trying to deliver what we
[22:29] believe was the best agreement between ourselves and our airline business partners. The
[22:35] key provisions of the new agreement. It's a seven-year deal it still is residual base
[22:46] residual base, meaning that the airline still serve as our financial backstop. We operate
[22:49] the airport on the revenues that we generate at the airport facility. Each year.
[22:54] We coming for you in front of you and this will be no different where we published
[22:57] our proposed rates and charges. If we have good year where we take in, let's say
[23:03] more non airline revenue than we anticipate we're able to cover more. The expenditures
[23:07] that way the following year. You're only rates and charges may go down. But if we have a
[23:13] bad year and we have more expenditures are unforeseen conditions. The rates for the
[23:16] airlines go up the next year your other terms and provisions can be really key,
[23:23] though. Talk about here in a second. While we are operating in the same type of
[23:30] environment, residual based agreement versus what's referred to as a compensatory
[23:33] or even a hybrid model where the county or the airport we take on all the risk risk in
[23:37] this case, particularly lies back with our signatory airlines. return for the
[23:45] agreement for the 7 years, the airlines are willing to approve 3.2 billion dollars in
[23:50] general airport revenue bond funding authorization for capital developments and
[23:55] repair and replacement projects. That includes 2.7, 5 billion dollars for a master
[24:00] plan will refer to as phase one. A. The board approved our master plan as well as the FAA
[24:07] and FDOT back in 2021. That program is broken up into 3 major components. Phase one,
[24:13] phase 2 and phase 3. Phase one has to sub components to it. Phase one, a. Which primarily
[24:21] consists of the automated people mover system and the Intermodal Center to mega
[24:24] projects 5, the Palm garage, demolition and redevelopment. A new roadway system that
[24:32] comes through particularly around terminals 2, 3, 4, so we can get better flow through
[24:36] our airport and a new central to utility plant. In addition to that 2.0, 7, 5 billion,
[24:42] there's another 313 million for what we refer to as a state of good repair. Make
[24:47] sure that all of the infrastructure, the airport is being properly maintained and
[24:50] repair or replace this necessary. So elevators, escalators back county
[24:54] systems, HVAC systems and like we want to make sure that the parts of the airport that are
[24:58] not going to be you getting the attention that they that they deserve to make sure that
[25:04] we are not in the news where it other reports. Sean, I mentioned right now might not
[25:11] have working elevators or escalators of those types of things that the team doesn't
[25:14] really, really good job. We had about 99th percentile on our up time on our systems are
[25:20] proud of that. We want to make sure that we continue And to make sure that that's the
[25:25] reputation that we carry as an airport. In addition to there's another 168.5 million
[25:33] in the revenue bonsai. The House or phase One B phase One B is actually the next
[25:40] terminal That's a term expansion of terminal 4 Concourse G to get started on
[25:45] the early planning and design activities when combined with the other funding sources that
[25:50] we have available to U.S. grants or tax PF seas. This supports it capital program.
[25:55] Approximately 4.8 billion dollars. Seven-year term was chosen to closely match
[26:04] anticipated to ration of the projects in phase one. A as for getting started on 08:00PM
[26:09] IMC on those projects and getting them into design and construction. We're going to
[26:14] be closely following right behind it with your early design activities for phase
[26:18] one B, knowing that that is going to be something that is very important to our airline
[26:21] partners. Phase One B, provide you the documents. We have a handout. That's exhibit A the.
[26:30] Tillis and use that he bla. Phase One B right now, the terminal expansion. That's
[26:37] another nearly 3 billion dollars for that. We're going to get started with the
[26:42] planning design activities as soon as we can. And later, we'll probably couple years, 3
[26:48] years down the road. Whether or not there's a successor agreement that's negotiated to
[26:51] handle that at that point in time. In addition to approved. That's question. Yes, sir.
[26:58] >> Just so on the on the master plan, phase One B. Is the only part that that's
[27:05] committed to right now is the design. Not the not the. >> The deal is structured
[27:13] commissioner that we're going to get started. For the 7 years. Will be. Really doing
[27:21] everything we can at that cash flows at 5 or 600 million dollars per year. Cash burn on
[27:26] The phase one B to do the terminal expansion. We have to fix the front part of the
[27:34] House. First, but we didn't want to wait till the very end of phase one a to get started.
[27:36] So we negotiated to get started with phase one. The design activities right away.
[27:42] When you take that 168 million and you'll see it in a different chart. We combine
[27:47] that with some other funding resources that we have. We have about a quarter that.
[27:52] Let's get a closer quarter of a billion and roughly about 235 million to put towards the
[27:56] early design activities for phase one B. >> Okay. But phase one, a is
[27:59] includes all of construction of construction, correct, sir. In addition to the
[28:10] preapproved, the funding authorization. We also needed to make sure that we addressed
[28:16] the items within our our daily budget to start to develop better cash reserves for the
[28:23] airport that will give us greater flexibility as we go forward. So there are 3 new
[28:29] deposit accounts to build cash reserves and airport developments account. Be able
[28:33] to address extraordinary unexpected items. 5 million dollars goes in for fiscal
[28:37] year. 2027 and it grows to out of 10.6, 1 million for Fy 29 escalates 3%. We're CPI
[28:49] thereafter. A cash reserve sub count starting in fiscal year, 2027, 2028, $0.50 per in plane
[28:59] passenger will be deposited in a cash reserve account that continues to grow up through
[29:05] Fy 31 to 33. To a $1.25. per plane passenger until 500 days. Cash on hand is realize
[29:14] that's going to give us the financial backing that we need that at some point time if the
[29:18] airport ever wanted to pursue a different type of governance methodology would have better
[29:23] cash reserves to make that believed to be able to go in that direction. Yeah, I think
[29:28] it's really critical. Important is the is the 3rd was a federal inspection
[29:31] services. We call rate stabilization sub account. So when you fly in to an
[29:37] international airport, there's a processing fee that most airports will charge ours.
[29:42] You've seen it it to be in our budget. If left unchecked because the 2 new federal
[29:48] inspection Aires at Fll one Terminal 4 want to terminal one costs. A lot of money when
[29:57] traffic count, international traffic count decreases those costs go up and then you start
[30:04] to work against yourself safe. Those costs are going up. How do I attract more business
[30:08] coming in? We were able to actually create this EFI a stabilization account which
[30:14] caps RFI U.S. rate at $12 with a 5% escalation per year insurance competitiveness with
[30:20] other international airports. We take a look around in Tampa, Orlando and Miami. We
[30:26] see rates of 8 or 10 or $12. We want to be competitive with them to try to get the
[30:30] international traffic become to FL. >> When using your mic, sir,
[30:37] thank you. Just noticed. I'm with everything I'm reading on federal government. The states
[30:47] that I just. Question how reliable the partner they're going to be in the future. How
[30:54] much of it looks like most of this money is generated locally from airport airlines
[30:59] and stuff. How critical is continued state and federal funding. I mean, if it gets.
[31:08] Cut in half or something, and we still we still have enough to finish what we're
[31:13] contracting for. >> The answer is yes, senator, that that when we when you
[31:21] take a look at our funding model going forward. The commission county, Mister in
[31:29] the Oversight Board. You know, the surtax contribution to the 2 big projects is 380 million
[31:33] dollars. And we'll show you that getting beyond that, the primary funding source is
[31:39] start to fall back on passenger facility charges. When you fly, there is a user
[31:44] fee. >> In your in your in your view to get a price that you
[31:47] pay it's to the airport. It's $4.50 that comes back to us. And we use is passing
[31:53] Priscilla charges for certain related projects. They have to be approved by the FAA. Then
[32:00] you start to get into what comes your way during that the either from the FAA or from
[32:04] the state. The state has been a great funding partner. And in this case here, Monica, I
[32:08] met with Secretary Perdue and we continue to meet with the state so far. They've
[32:15] earmarked approximately about 200 million words, the automated people mover system.
[32:20] counting on those dollars to come our way in the future. The FAA, because the I J and
[32:28] bipartisan infrastructure dollars most likely going to go away, although there's some
[32:33] discussion to try to get extended the federal government level right now. We
[32:36] won't be able to count on those. We'll have to rely on the existing, but the call
[32:43] airport improvement program grants or pursue other opportunities where there
[32:49] might be. And this is where the intermodal Base comes in for for those types of that
[32:54] activities to be able to get grant dollars that way. You'll see that in our funding model.
[33:01] And certainly will take every bit of grant funding. We can that we we don't have to use
[33:03] bond funding for that. But it is our and our expectation that we'll be able to flow
[33:07] down. The last the big one on this page that I think is really, really critical. I
[33:16] mentioned earlier that in today's agreement, any capital project that cost greater than
[33:23] $150,000. We need to ask the airlines for permission. We thought that that was
[33:27] obviously incredibly way too low in today's day in age that we need to go shut event that
[33:31] is now been increased from $150,000 to 15 Million. So a project that's under
[33:37] 15 million that we really need to do. Will enable us to do that without airline approval.
[33:44] Obviously, we want to take a look at if we do those types of projects and we float more
[33:49] debt. Ultimately what's going to have impact on the cost overall cost for employment.
[33:54] Why we're trying to also do these other big projects at the same time. The other key
[34:02] provisions of the agreement modifications to the least preferential gates check-in
[34:06] counters office space. In today's world. There is no annual reset of the
[34:16] preferential gates with what mean by preferential Gates or 8 signatory Kerry so long as
[34:19] they can demonstrate. That they're going provide the service that we need in terms
[34:24] of the flight activity. As well as the the space requirements of fleecing to
[34:30] make sure that we have space. It's least. In today's world. Once they meet that formula,
[34:38] if they drop down, it's incredibly difficult to recapture that from them. In
[34:41] today's world. A gate I could recapture from them. In other words, you you said you're at
[34:47] this activity. But as time went on your activity, top to drop to drop, I could try to
[34:53] claw back that gate from an airline. The other space that's required in order to
[34:59] operate a flight. counters office space will not was never included and those
[35:06] provisions. So for the airport to actually get that space back from an airline we could
[35:08] give to another online was incredibly difficult, if not possible. The other thing is,
[35:15] as we talk about preferential gates and that the airlines are signature lines like to
[35:20] say when we say preferential. You have this gate, that's your preference released gate.
[35:26] You get first crack of how that gate is going to be utilized throughout the day.
[35:32] If you say you're going to put 6 flights on that date, you're gonna put 7 flights on okay
[35:36] get the 5 flights on. Okay. You submit the schedule to us. Once you Smith is scheduled
[35:42] us, we look at how that game being utilized. If there's holes in between there we use,
[35:46] the airport are entitled to use that Kate. And that's how we generally operate. But
[35:50] there's never been a reset, be able to say. You know, right now you have 10 preferential
[35:56] gates. But we go through the formal year after year after year. As long as you've met
[36:01] that baseline minimum. I would never be able to claw back any of those Gates. Meanwhile,
[36:07] another airline may have grown significantly and was deserving of more gates with
[36:12] the formula. Never allowed us to get that. So, for example, and I know my friends from
[36:17] JetBlue are in the audience here. JetBlue and in today's environment has 14
[36:22] preferential gates at one point when Spirit was operating, spirit had and
[36:27] preferential gates. But because of their flight activity. They should have
[36:32] been afforded 20 Referential Gates. But there wasn't that many gates to be able to
[36:38] afford them. We couldn't take them back. The new agreement every single year. We will go
[36:43] through a reset to see who's flying, who's not flying in order to keep the airport
[36:50] imbalance going forward. And it's not just the gates. It's everything that goes along
[36:53] with it. We have 66 gates. 56 of those gates will be allocated for preferential
[37:03] use. And in the first deal and then we read, we retain 10 common use gates in order to
[37:10] handle all the other line. So we have 25 airlines in total. Of those airlines are
[37:17] signatory 17 or non signatory. We will use those 10 gates operate all the flights for
[37:24] those other 17 airlines you to go through. It's going to give us greater utilization and
[37:31] versus the static. The upright Terry signage on the back walls right now. Most of the
[37:38] airlines have what we call hard static signage. When we switch counters around, we
[37:45] move airlines around. It becomes very difficult to get rid of that proprietary
[37:49] signage. So we've negotiated that we're going to change that going forward. The minute
[37:52] we get any area back will be changing and that with dynamic signage that we can move
[37:57] airlines around a whole lot easier. You're seeing this at airports more more more at the
[37:59] back while we're not talking about. You know, a 42 inch monitor. We're talking about
[38:05] something that actually is wall size. That is in dynamic electronic digital format so
[38:10] that we can actually change whoever's operating at that gate. actually branded very
[38:16] going forward. last Mr. >> been signed already points. >> Now it will become the
[38:26] airlines are all in agreement. This would be coming so long as the commission is a willing
[38:33] to endorse it. It's coming to the board on September 10th. >> But there are an
[38:38] improvement, but everything's are all in agreement >> and then lastly, enhanced
[38:45] airport airline communication coordination. This establishes a program and point Haitian
[38:50] mansion process for information sharing and collaboration. Me. We're going
[38:52] to sit down with them on a regular basis and talk about our projects and operational
[38:56] issues much like what was raised earlier today, mayor, whether lining queue
[39:01] management, a ticket lobby or it's how their parking airplanes
[39:08] >> the Triple-A seen the county to use best efforts to meet no less than quarterly to
[39:10] discuss. Key matters. And then the county, Maryland representatives used
[39:16] reasonable efforts to meet monthly to discuss and resolve issues related to facility
[39:20] utilization technology and design standards. You know, going forward. This is all
[39:23] baked in the new agreement. >> After hearing from my board members, I'm only a talk
[39:28] positive about the greater London JetBlue. For the answer. All right. For that.
[39:41] >> close out the least news agreement, the new Airline Airport use lease agreement
[39:45] and terminal building. These agreements provide for financially strong,
[39:49] operationally flexible in airline supported framework that enables the county to
[39:51] continue the transformation. Modernization and expansion of FL one of the county's key
[39:58] economic engines and to begin implementation on the next phases of the airport's
[40:02] development, especially the critical landside improvement projects. We've all talked
[40:06] about how difficult can be to get in and out of our airport facility. Roadways are too
[40:08] small. None of parking many times and we're still moving people around our airport on
[40:16] shuttle buses when the other 3 large airports in the state of Florida are using automated
[40:20] people, technology. They've been using it for decades and decades. Because we spent so
[40:24] much time, so much effort to try to make sure that the front door is fixed. So that
[40:31] you can grow on the back side to get additional concourses in Gates. We wanted to say
[40:37] that same time the new agreements acknowledge and recognize the value business
[40:40] partnerships with our airline can and their respective needs, including terminal and
[40:44] gate. Developing for future growth. So well, they would love to have. Not 66 gates,
[40:49] but 76 Gates are 86 gates until such time as you can get traffic in and out of the
[40:54] front. Trying to add more gates to huge scale, I believe would would cause and the
[41:03] severe detriment of health folks would come and go from our airport facility. We do
[41:06] want to thank our airport Airline Affairs committee a member lines for engagement
[41:13] participation throughout this lengthy and into a process that has been long and he's
[41:17] even as recently as just a day or 2 ago, we were still speaking language to make sure
[41:24] that we had all the I's dotted and T's crossed and some some issues every time an issue
[41:27] would come up. Again. A different airlines are running it through their corporate
[41:33] councils and we get an issue that comes back and says I'm going to change because you
[41:37] want it, but it might impact your Operation, Commissioner Davis or might impact
[41:41] commissioner Fishers operation and try to get it all worked out again. Very, very process,
[41:49] lengthy process. But we landed, I believe, in a really good spot for for both parties
[41:51] involved here. Any other questions on the lease and use agreement? We do these 2
[41:59] parts. First, the terminal 5 again because 5 is going to be part of the preapproved bond
[42:07] financing to cover the cost for that. It's baked into the lease and use agreement as
[42:10] part of the 2.7 5 billion. But because of those accounts that are set up, there's deposit
[42:17] accounts and reserve accounts that are in any agreement. They have to be part of the
[42:24] operating budget, which why wouldn't the operating budget for last? So the key budget
[42:30] highlights. Airline activity fiscal year 2026. Total past employment are forecasted to
[42:39] 15.9 million, which is 4.9% less in the Fy 26 budget. But remember our largest airline
[42:49] went bankrupt and out of business at 30% market share, even though we had start to
[42:53] see a little bit of ramp-up prior to May. 2nd. From a second til July 9th when
[42:59] JetBlue really started to ramp up that was over 2 months worth of service. So to hit
[43:05] that mark at 4.9%, I think it's pretty good given what we've gone through. There was
[43:12] a comment, I think Commissioner Dean, you made earlier when we take a look at
[43:15] our traffic. It's not in this report here. The ramp up that in the backfield that we've
[43:21] received thus far fight a look at the seat count, the number of seats that fly through this
[43:25] airport in December of 2025. vs December program for December of 2026, we're
[43:32] actually up 2 and a half percent in December of 2026. That's with the demise of
[43:36] Spirit Airlines in the backfield coming back in. And we believe that's going
[43:39] continue to grow. To the point again, Gates and competition for Gates becomes very, very
[43:46] dynamic and very stuff. The fy 27 claimants are projected to be 16.5, 1 million or 1.3.
[43:56] Below the Fy 26 budget implements. But above where we think we're going end fiscal
[44:02] year. 26 by almost 4%. On the financial performance. Identify 27 total operating
[44:09] revenue. Budget is expected to decrease by 4.3%. Compared to fy. 26. The Fy 20 Seven's
[44:17] operating expense is expected to increase by approximately 5.5% compared to fy 26 and
[44:21] will go through some of the notable increases decreases, if you will. The net revenue
[44:29] budgeted to forecast budget to decrease. Excuse me by 34 0.9% compared to fy 26 budget in
[44:36] decreased by 14.3% compared to the fy. 26 forecast. There's a simple affair. That again goes
[44:43] back to that F I S stabilization rate. We created this stabilization count. It's
[44:51] funded with approximately 55 million dollars. And of that, 55 million dollars will
[44:56] use the first 19.2 million subsidize the revenue requirement from the airlines,
[45:02] which is going to keep our on CP rates and charges pretty pretty flat. But it's also
[45:08] going to keep that if I asked charge to travel internationally into our
[45:12] facility capped at $12. Ultimately that is suppressing its artificially suppressing
[45:18] the revenue requirement that otherwise would have to be charged. The airlines airlines
[45:24] were applauding this effort. Again, we have many of our airlines do not fly
[45:28] internationally. So the notion of funding or artificially subsidizing for those that are
[45:34] coming in on the international side wasn't always well received, but ultimately the
[45:38] way our our budgets work, it would have had to come back to everybody across the board. We
[45:43] came up with this innovative way are. CFO who's no longer here with us. He's moved on. I
[45:52] was highly instrumental this working the liaison Officer, Jason Watkins, and of course,
[45:57] Priscilla new. picked it up and ran with as well on. So our cost for employment rates
[46:03] and charges. The CP is budgeted to $10.60, which is $0.42 less in last year's
[46:09] budget or this year's budget. I should say. CP is supported by 19.2 million dollars of
[46:14] finest. A position right? And our fy 27 landing fee will also decrease by 7.8 percent
[46:20] down. Dollars and $0.38 from where its current level at $2 and 50 $0.8.
[46:32] >> Can understand what the decrease? These increases? How do they How do they affect the
[46:37] overall budget? Decreasing? Landing fees? So the airlines have to pay Airlines like this
[46:49] charging. We'll go down. But this to charging high airfares.
[46:57] >> The if the airlines are charge has nothing to do with their fares. The airlines are
[47:02] charged according to what it costs for us to actually operate the airfield where the
[47:05] terminal. We have cost centers that are broken out for each one of us.
[47:10] >> OK, so it go based on. You can control these prices is what you're saying.
[47:20] >> We can't control them to a certain degree. When we get further into the presentation,
[47:22] commissioner, you'll see how we look at both non airline revenue and airline revenue
[47:27] essentially the way our models work is you take all of our expenditures are in very
[47:32] simplistic terms. Take all of our expenditures and apply the non airline revenue that we
[47:36] get and sessions our key advertising are rentals and apply that to our
[47:44] expenditures. Whatever is left over on those expenditures becomes what we call the
[47:48] airline revenue requirement. What they have to pay us. 43% in our budget. That 43% then
[47:56] is now divided into its cost centers. How much is on the airfield? How much is
[48:02] interminable damages on the land side? How much is space that we have to take care of?
[48:07] How much is common? You space? needs to be taken care. There's a very elaborate we'll
[48:12] call rate making methodology. That is part of our agreement. It's one of the exhibits
[48:17] that's how we've negotiated with the airlines that what they pay.
[48:21] >> But this is not a fact. Could this not affect the pricing? Because always heard
[48:26] that. For example, in Miami-Dade, the landing fees are higher. And so a lot of
[48:32] times affairs. Be affected because they say we pay more landing fees. So
[48:41] if going down. You know, move the airline, you take that their prices would So to go
[48:49] up. >> I think what's driving the airline prices bill up.
[48:53] >> You'll uncertainty, labor labor was a huge, huge increase going forward. The
[49:02] shiny moment and that commissioners. >> Quarter after quarter after
[49:05] quarter. Between. >> You know, the Bureau of Labor Statistics and the
[49:12] Bureau of Transportation Statistics and surveys that are Donald across the country.
[49:16] Fll comes out as either the number one for the number 2 lowest cost airport in the
[49:21] nation for average one-way fares. There's actually a chart here that I'll show you
[49:24] where we are recognized called out by being the lowest in the in the nation right now. $261.
[49:34] Average one-way fare lower than 50 49 other airports in the nation. Thank you. And
[49:38] that's attributed to us trying to keep our cost is no. And CEO Garrity for JetBlue made
[49:45] mention of this in one of her her interviews when she gave about JetBlue trying to create
[49:50] the Latin American Caribbean gateway Hub. I think she caught at Broward counties are
[49:54] Broward County is wise to keep their costs as low as we can at the airport because it does
[49:57] help attract business coming into our airport. These are just the the projections
[50:08] again, for the passenger trends, all the on the right. The blue is domestic. The
[50:13] Orange is international. You can see that we're still in recovery mode for some of the
[50:19] international forecasting 2.8 million on the employment for international. If you look
[50:26] years back in 2020 for 2023, we're up into 3.7 million. That is a direct function of
[50:31] all the international service that JetBlue our team Spirit was providing. Now we're going
[50:37] to see with JetBlue providing ultimately the bulk of the service with a Latin American
[50:42] Caribbean gateway. Hopefully the numbers and that aren't are going to continue to
[50:45] decrease increase. And we're also seeing some of our other carriers indicate that they
[50:50] also are looking to fly internationally here in the future as well. More
[50:53] passengers that fly internationally through our facility. Snead, there will be
[50:58] for that EFI. A stabilization those costs will pay for themselves to the head count.
[51:01] That's actually coming through the facility. The Fy 26 protective and claimants the
[51:08] crease with spirits ceasing operations. But then that was anticipated. Backfield. 27 and
[51:14] claimants are projected to be 16.5, 1. Or again, 1.3% below fy. 26 budget. But above where
[51:20] we're going to end Fy. 26 on September 30th of this year. So we came down, but we're
[51:25] coming back up. Where we rank ACI rankings just came out recently for the year 2025.
[51:36] 20th in total passenger traffic in the nation. 21st in domestic traffic 14th in
[51:40] international passenger traffic. On the right-hand side where markets for county
[51:51] year 2025. On the domestic and the international side. The narrative on the left, the way
[51:56] we read, this isn't the year to date calendar 2026. What's in Orange is the 2025 Paris
[52:01] and so. 2026 Fll had an average of 262. Daily domestic departures versus 251 last
[52:13] year, 211 cities versus 101 last year, meaning our domestic
[52:17] operation. He's doing better in 2026. And it was in 2025. Inversely on the international
[52:25] side in 2026. 65. Versus 68. Average daily international departures to 48 versus 51
[52:34] destinations to 22 countries. So we're running a little bit lower on international than we
[52:38] were last year. But again, hopefully with the work that JetBlue and others are doing.
[52:43] We as well as additional air Service development activities. I will see an
[52:47] increase on the international side as well. What's the current airline market share?
[52:52] So on the right hand side, it's current fiscal year, October, first through June,
[52:59] 30 thing you see spirit in there. That was the aggregate at one point time Spirit had
[53:06] 31%. market share. This was the nine-month look for the fiscal year. But if you want
[53:14] goes out of business, if you take a look at June only for Fy, 26, you can see the
[53:18] JetBlue. Has jumped up to 33.9% and some of the other airlines have also increased.
[53:28] You can see Southwest even went from 9.3 to 10.8%. Delta went from 12.8 to 15.3%.
[53:35] Allegiant mayor's favorite airline right now. I went from 4.4% to 7%. So you can see
[53:43] that it was absorbed by more than just one airline across the board. But in fact, it the
[53:50] July 26 numbers came out after submitted this presentation just came out last couple of
[53:56] days. JetBlue for July only it was 37.8%. I believe Noel. You. So it's even greater than
[54:06] the 33.0. 5 1%. >> Would you mind using your Mike? Thank you. You're
[54:21] talking about this where they were. When you do the annual reset. So now you have a lot
[54:24] of changes here. But but all those lot of those things, more recent yet right there.
[54:31] Not reset yet. So so gate counters, all those things. No reset on October. 1st. So for
[54:37] example, on the preferentially skates. JetBlue has 14 preferentially skates today
[54:44] right on October. First, JetBlue will have 21. So and so like maybe a he'll be like
[54:49] a legion. I will have. This is double the amount of as Jynneos Legion goes from
[54:57] Forty-niners coming up, right 2 to 3. Preferential Gates. American goods. More counters
[55:05] coming American because they want more counters, >> Just show they will work
[55:14] because it's the least they need more countered by does it still have the 2 employees
[55:18] sitting there just push through? Mr. Davis, this was commentary that was talking
[55:31] about. >> it just picked this article of America's most Affordable
[55:32] Major Airport. Is this convenient. Southeast gem surrounded by a comic
[55:36] destinations. Airfare in the United States climbed by more than 25% between June of 2025.
[55:40] 26 per the Bureau of Labor Statistics impacted by jet fuel cost simply churches. But
[55:45] not all airports are feeling the squeeze of 2026. Report from local insiders dot com.
[55:48] Digital traffic on travel platform. Highlights the most and least 4 double major ports
[55:54] in the U.S. and the numbers show. That where you fly can significantly impact your
[55:59] wallet. Earning the title of the countries cheap. This. I want to say more affordable.
[56:04] major air hub is Fort Lauderdale, Hollywood International with an average
[56:09] fare 261.0. 69 and a location convenient to several of the Sunshine State's iconic
[56:17] attractions. So it is something that we see repeatedly over and over
[56:20] again. And that is largely due to the number of lower fare carriers that we fallen
[56:25] through. We get into the financial performance again. Airline revenues. 2 green
[56:37] columns from the Fy 26 budget to the fy 27 creeks, the airline revenues. 185 million
[56:44] in this fiscal year. Their budget at 176 Million. And in the Fy 27 budget. Again, a lot
[56:54] of these are a result. You'll see kuz that airline revenue requirement goes down. That is
[56:58] because of the stabilization funds that we've injected in. Rental cars 83.8 million down
[57:05] to 79.6 million. That's just a function of what we're seeing in the marketplace and a
[57:10] number of passengers that are traveling through here. Same thing with parking. We've seen
[57:14] some behavioral changes on the parking side. It was 69 million budget. Looks like
[57:20] we're going to come in 63 million at the end of this year. And then 65 million is
[57:25] our projection for the budget for next year. We see more folks taking things like
[57:30] rideshares to and from the airport. We think that has an impact on concession revenues.
[57:37] These are things that are watching. Looks like we're going to come in 49.7 million
[57:43] for this year. Again, some of that is a function of spirit. sensation of service where
[57:52] Terminal 4 in particular became a bit of a ghost town for 2 months. But we're seeing
[57:55] the activity pick back up. Terminals wanted to wear HMS host and Hudson or operator
[58:01] actually seen quite healthy numbers over in terminal one terminal try to balance it
[58:03] out. >> On the Uber and Lyft to do we get any airport fee for
[58:12] each pick-up. >> We get per pickup that comes through. If you recall
[58:16] when when Uber Lyft first started. Before it was mandated by the state at in
[58:23] terms of the charges we were charging $4 and $0.50 for pickup and $3 for taxi cabs
[58:31] and the state came in and overrode us and said you can't charge you can't you can't
[58:36] charge rideshare airport. You can charge rideshare more for that. Pick up. Feed the new
[58:39] charge. A taxi cab. So we had a lower the rate for Uber and Lyft from $4.50 to $3 to match
[58:46] the taxi cab. We took a 33% cut that was back in 20. I believe. We're seeing certain
[58:57] days, particularly during cruise traffic where we'll see. 12, 13 as many as 15,000
[59:03] person left come through the airport in a single day. Between terminal the pickup
[59:11] areas that you Palm Garage and terminal 3 for pick up term of 3, 4, We see as many as 400
[59:17] who burst coming through in an hour. One every every 5 seconds. I mean, through. And
[59:23] when you add the other ones and you can see 7 or 800 Wright shares coming through
[59:26] and now. The parking garages are not empty, but we we do see a little bit of softness
[59:32] in that area. So we're looking at really closely. And again, some of this is just
[59:37] demographics about what people are are. Other getting to and from the airport speak and
[59:42] start parking comparable to Miami and Palm Beach. In terms of his cost. Charges charges
[59:47] were less time. We could raise the fee. We raised the fee a few years ago. We went from
[59:57] $15 to $20 in the parking garage and are valet. Went from 25 to 30 and in the short
[1:00:03] term, we kept it the same. $36 per day. But we we changed how it ramps up as you in the
[1:00:09] before we raised it. You can stay in that short term for after day before you hit the
[1:00:16] top, the rate. But because we wanted to see the turnover in their quicker to make space is
[1:00:22] available, we can press that he actually hit that operate. Pastor, it's $2 every 20
[1:00:26] minutes when you go through there. But we still people that come in park in short
[1:00:30] term. Not just for a day, but for many things in a row. But the revenue numbers, again, we
[1:00:36] see different. Metrics on what's the duration of state versus how many transactions
[1:00:43] we get. It is something that we continue to watch. But rideshare for sure has changed
[1:00:48] quite a bit of of folks coming. >> As it relates to the state
[1:00:59] legislatures and their mandate as to what we can charge. When do we evaluate and back into
[1:01:07] advocacy moved those funding. When do we do that? They don't know what we're failing. Not
[1:01:10] that they care. But I think responsibility. >> I think that the it's
[1:01:16] great. It's great question. Commissioner. One of the when that when that change was
[1:01:22] first enacted, where was, you know, you had a choice. You could raise. The fee on the
[1:01:29] taxicabs from 3 to $4.50 or lower or try to somewhere in between the decision at that
[1:01:35] point in time was not to raise the fee on the taxi cabs. There are still quite a happy,
[1:01:41] healthy next, a cab environment there still is build it. But we see. 85% of
[1:01:47] the pickups at the airport. Commercial pickups at the airport. A rideshare and about
[1:01:54] while the 15% tax right now. Play around. And we're happy to look at the scene where
[1:02:00] where that fee should be. don't think that the state is going change anything other
[1:02:07] than you can't charge more or less if you charge $5 charge $5 or $3 $3. There have been
[1:02:15] efforts we believe at at the state level, some of the rideshare companies to attempt
[1:02:20] to cap that at certain point. you can't charge let's say more than $2, which would be
[1:02:28] devastating. And it is something about your Patrick's on the rumor or Casey, but
[1:02:32] that that's something that we need to pay close attention to with our lobbyist
[1:02:35] >> we as we. Look at. Miami, real ways. Compare ourselves to Miami or Palm Beach or
[1:02:47] whatever. Do week pay. >> The fees parking fees. So when we raised the rates 2
[1:02:56] years ago, 3 years ago now, 2 years ago, >> you know, we did it in such
[1:03:03] a way that we tried to become comparable. if we can do to increase the revenue but not
[1:03:07] be the highest priced. So we actually still do ride either right at or just below Tampa,
[1:03:15] Orlando or Miami. We actually have a chart on that commissioner. Be happy to
[1:03:19] provide to you. We updated frequently to see where the charges are. And we are. But
[1:03:26] we are not just competitive, but much like the airfares. I think we are the lowest across
[1:03:30] the board. >> One final question as it relates to our search, their
[1:03:36] tax. >> I know we first started that was not included in. The
[1:03:43] vote that I cast. It was not a choice. What was not listed on there was for the airport. Get
[1:03:53] any pleaded it administratively and where are correct in doing so because we
[1:03:58] see the improvements that were made just because of that. This the commission. This
[1:04:07] budget, do you see that contribution public tax? >> So the surtax fundings is
[1:04:13] in the capital side of the House. It's 177 on one side in 203. I think 2.15. No totaling
[1:04:24] approximately 380 Million. So. Those mega projects that we've mentioned, the the automated
[1:04:32] people mover system and Intermodal Center. Approximately 1.4 billion
[1:04:40] dollars apiece. So those surtax funds go to those different projects along with
[1:04:42] the other funding sources by and those projects are still going to be paid for by
[1:04:47] general airport revenue bonds and the debt service is going to run through our region
[1:04:50] charges and your lines, pick them up. I just like Experience. It's definitely
[1:04:57] ever grateful. This is like to hear it. Sometimes like Oliver twist. Things have please,
[1:05:04] sir, may have some more. Here is a deal tribute. >> Even if we airport, use in
[1:05:11] our tax dollars. It's taxes. Bres. >> Our business partner
[1:05:19] airlines would love it if we obviously any funding sources that that can offset those
[1:05:21] costs that are not being charged to revenue bonds and the debt service being flowed
[1:05:25] through the model which they ultimately have to guarantee and pick up is where we would
[1:05:31] like to resign. So whether the state con. >> Oracle by administrative,
[1:05:36] we get into credit for that in the budget. >> Yes, ma'am. give you all
[1:05:41] the credit for >> And if I can make one clarifying statement. So just
[1:05:49] for the public, that might not this one understand we're talking about public dollars
[1:05:56] were talking about sales tax dollars, not property tax dollars. Just to clarify
[1:05:59] regressive. >> The footnotes of the bottom of this page again during the
[1:06:11] pandemic weather was cares or or Sarah say or All of those funds are now expended. There
[1:06:20] are no more injections of federal dollars to help offset our operating budget. Just a
[1:06:29] quick look at the revenue diversity, you know, where the revenues come from on the
[1:06:32] right hand side is the fy 27 budget of 409.4 million. 43 1% of that. Is airline revenues.
[1:06:41] 57% of it is non airlines to rental cars, parking concessions and others that
[1:06:44] contribute to it. again, that know about the 19.2 million helping to stabilize on your
[1:06:52] line. Revenue side of the House. Operating expenses >> the fy 27. But you can see.
[1:07:04] The variances on the right-hand side from a budget to budget year. Where we see
[1:07:08] increases, let's say and contractual services. That's a janitorial shuttle bus
[1:07:12] services through the great work I think of are chief operating officer Rusten on a
[1:07:17] maker and his team to try to make sure we keep those costs trying to seek operational
[1:07:21] efficiencies. But other creases that we go down software. It's a big number on
[1:07:28] 55 0, 3%, increase. These are some numbers that are just out of our control. That's what
[1:07:34] costs for its offer, support and licensing. Law enforcement increasing from the 56 million
[1:07:41] in. The Fy 26 budget to 16 and the Fy 27 budget. Utilities actually goes down a little
[1:07:50] bit. Insurance goes down and we have a slide that talks about some of these notable
[1:07:57] increases and decreases on the on the next page. So the notable increase in salary and
[1:08:07] benefits based on anticipated salary adjustments and increases the group insurance
[1:08:10] costs went up by 4.4 million janitorial. 2.6 million increase based contract
[1:08:16] pricing and potential increase on RFP for terminals CCO seize our airport operations control
[1:08:22] center policies for the acronym. MILLION dollars equipment, maintenance.
[1:08:30] Because previously covered under other contractual services that were absorbing.
[1:08:33] Now they're no longer covered on those contractual services. And then 5.5 million legacy
[1:08:39] security systems upgrade or bringing some of our legacy security systems in House and
[1:08:45] doing it with our own folks. In order to retain regained, excuse me, greater control and
[1:08:51] reliability rather than having it by third-party contraction services that were not always.
[1:08:56] The reliability wasn't where we needed today. Decreases 2.7 million insurance decrease.
[1:09:05] Reflecting normalization after Hurricane Ian. 1.1 million, as I said, electric utility when
[1:09:13] down based county estimates and $832,000. Due to operational efficiencies. To
[1:09:21] the key rates and charges. You go across our and claimants again, 16.5 million on the
[1:09:29] employment. Lanning fee is $2 and $0.38 for says $2.58. Are tied to space inside the
[1:09:42] building, which is the the the tax base that we used to price everything out for airlines
[1:09:47] $2. $215.72 the love from its 202. The F a S t. Currently at $14. And today's budget. But
[1:10:01] we're capping that at $12. Again. It's a $2 decrease. Try to make sure that we remain
[1:10:06] competitive in the international arena to attract more international carriers.
[1:10:10] So our aggregate cost per plane passenger was budgeted at 11. 0, 2, in this fiscal
[1:10:14] year. Budget. Our forecast with with everything applied in here, looks like we're
[1:10:22] going to come in a $10.13. But then for the budget. It's $10.60 for the Fy 27 budget.
[1:10:31] So the column in the Middle. want to confuse you. But the pin where it says an adjusted,
[1:10:37] that's what our rates would have been. If we didn't apply the EFI a stabilization on
[1:10:43] sand there. So you can see that RFI us fee. would have jumped from $14 to $21. Are
[1:10:49] higher. >> These numbers based on because of the signatory
[1:10:57] contractors, a part of everything is based all of our deposits to our counts that
[1:11:02] are talked in there that become a commitment and obligation and how we fund all
[1:11:05] of our region charges. That's all Big here. Okay. So those that $0.50 per plane passenger
[1:11:12] or the deposits to the to development reserves, the 5 million dollars. All of that
[1:11:19] becomes part of then we go. We take all of the obligations commitments and we run it all
[1:11:24] back through the rate model to get the suspect writes, how much to the measures in figure
[1:11:31] And they do that. Would you be doing that once a year? Yes, we do. We reset every single
[1:11:35] years. I said if we we set are non airline revenue, those fees that I or the revenues
[1:11:40] they just went through, concessions, parking, whatnot. We project how much we think
[1:11:45] we're going to do. And if it comes in higher, then these rates you would see would go
[1:11:49] down the following year. It does right. >> Up and down depending upon
[1:11:56] how how conditions are. >> Marc, earlier, you had said that we were at to 61. The
[1:12:05] close to. it's true. We were the lowest in your with you said in the region of the
[1:12:10] country, it's in the country. U.S. domestic. It's not an international.
[1:12:17] >> And in senator, those those statistics and the surveys in this case, this taken from the
[1:12:25] Bureau of Labor Statistics. So when they published new data, we watch depend upon, you
[1:12:30] know, who's doing the surveys? If it's an external survey, those numbers fluctuate a
[1:12:35] little bit. But this one was from the Bureau of Labor Statistics.
[1:12:41] >> Mike. Solar energy. I mean, just looking at improvements. And what are your plans for
[1:12:49] that? Because we're looking at. We do to lies the services Currently. Can you separate
[1:12:56] here? Your fire from your line for? >> We can do that,
[1:13:05] commissioner. Yes, we have that separated out. It's not in the presentation that we
[1:13:09] will make sure that you you have data for you. So you can see what the increases are.
[1:13:16] With respect to the first question on the environmental and particularly with the
[1:13:19] solar. That is something that we're always looking at. How do we, you develop efficient
[1:13:25] facilities so terminal 5, for example, LEED certification. When we look at the Intermodal
[1:13:32] Center and whether or not you seen some locations, whether there could be solar panels
[1:13:39] are raised that might be able to positioned on top of that facility going forward. The
[1:13:42] rest of the campuses is tight and wouldn't allow necessarily for solar Ray. It's something
[1:13:49] that we have looked at. So we're looking at other opportunities that we might be
[1:13:52] able to enhance savings increase or are environmental responsibility in that regard.
[1:14:01] >> Are you using a wheelchair that are automated? I sit in and it takes.
[1:14:04] >> Not. Yeah. they are. >> In use at other airports but there and you said they're
[1:14:13] procured and use in most places by companies that provide the services directly
[1:14:17] to the airlines and they invest in I actually had somebody that told me they
[1:14:20] used one I actually saw them in service a pin Detroit. I didn't write myself, but I did
[1:14:30] see it in action. >> Just curious as to when we're going to get there. I
[1:14:41] don't like them because they're taking away jobs. Well, that's my reason for
[1:14:44] that. Supporting I want this. >> It wouldn't be something commissioner that we would be
[1:14:51] investing in ourselves just yet that there's there's approximately 55 different
[1:14:56] companies. What we call airline service providers that provide the services to the
[1:15:00] airlines. And that is the services provided to their line by one of several
[1:15:03] companies. They may choose to invest it, but we haven't had any conversations with anybody
[1:15:07] just yet about putting them into Fla. close it out the capital budget, 152 million
[1:15:17] for the fy. 27. How much of it actually hits or airline rate base and 79 Million.
[1:15:24] 64 million in bonds. 14.6 million and what we call cash that's actually flows through
[1:15:30] our rate model and then on rate contributions to the capital program. Pastor
[1:15:37] facility charges PFC Ys F DOT FAA and then also getting some FEMA money for damage is that
[1:15:44] we incurred different points in time, whether due to the flooding in 2023. or some
[1:15:51] other issues. We're looking to get those monies into the capital program here. Yes, the
[1:16:04] last bond issuance at the airport. was in 2019. So we are gearing up to actually
[1:16:11] once the board hopefully approves the agreements with the airlines. We're working
[1:16:16] with the finance Division 2 to their back by. red by airport revenues. So it is external to
[1:16:25] the county. fully backed by the credit of the airport. That's why the airlines are
[1:16:28] our financial backstop and they covered the debt service to the rates and charges.
[1:16:35] >> As opposed as opposed to the other model, we move you. >> The other model, if we took
[1:16:41] on all the risk, it would be if you had if you had really downturn. So, for example,
[1:16:49] back in fiscal 2020. During the pandemic. When everything dropped out, even with federal
[1:16:56] funds coming in, we still needed to go back to the airlines and get additional
[1:17:03] monies for them in order to make sure that we maintain debt. Service coverage isn't
[1:17:05] paid bills and several airlines had to check had to write checks to us in the
[1:17:10] millions of became our financial banks. Are they working parts of the point?
[1:17:14] >> Which is why you're recommending this for September 10th. To try to
[1:17:18] bring it on. Yeah. Sorry. That's just the breakdown of how it's
[1:17:29] >> You can see that private the majority of everything that we're going to be doing
[1:17:31] going for the future. But not all of it is in the land side. That is the intermodal that
[1:17:36] PM. That is roadway construction. That's where you can see the next 5 years
[1:17:40] fixing the front side of the airport. You know, most centers, you know, gets
[1:17:45] another 7,000 provided of 7,000 parking spaces for the airport. Last couple slides
[1:17:52] here. The capital program, 5 years just breaks out by fiscal year with the
[1:17:57] expenditures are most notable. I think in here you can see in Fy 29 and fy 30 see big
[1:18:03] numbers. That's where the expenditures on the land side, 611 Million. 1.1 billion, 710
[1:18:11] million. That is us investing in the front door of the airport getting this big mega
[1:18:14] projects done. North Perry on the airfield. Fy 27 28. landside. And we're still
[1:18:23] working on the perimeter pathway around the airport going forward. That's broken
[1:18:30] down in a couple different phases commission. We can give you an update on that
[1:18:33] Perimeter Pathway Project as well. This is just the laundry list of of all the different
[1:18:42] projects that are in the Fy 27 Capital Improvement Project. One for you with any of And
[1:18:48] then we have what we refer to as renewal or replacement projects vehicles, computer
[1:18:52] hardware, common use equipment were not all that totals up 152 Million. that's that.
[1:19:00] Question, sir. >> On the APM, which is the top thinking that you have on
[1:19:07] 2027 cip. We've been talking about both the 08:00PM and the airport Seaport connector for
[1:19:18] a long time. Can you just give us very, very quick update on that teach? You know, I've
[1:19:24] I've had some questions, not about the 08:00PM, but the airport Seaport Convention
[1:19:30] Center connector because of my questions to whether or not we will. Ever in any of our
[1:19:39] lifetimes reach an agreement with the FTC and my understanding we don't
[1:19:45] actually need to an agreement or we do. I know we need the aerial rights. Do we need
[1:19:51] anything else from FTC to make the airport Seaport Convention Center connector work.
[1:20:01] >> I'll defer to the county, mister on the airport Seaport Command Center connector. The
[1:20:04] 2 projects that the airport is lead on for the animal Center and the automated people mover
[1:20:09] system. And we remain in ongoing discussions. County, Kelleher, myself is me. Met
[1:20:15] with FTC as recently as a couple weeks ago. So those dialogue continue about use,
[1:20:22] aerial them for 35 for first agreement. were very optimistic. We do. We'll get
[1:20:29] something and they are necessary for the 08:00PM and its configuration to be able
[1:20:34] to service center. That's why we're at the table with them working through those issues
[1:20:38] with them. So the >> the not the 08:00PM, but the right most center is
[1:20:49] dependent Reaching agreement with the FTC. it's going to say because just give up the
[1:21:03] Intermodal Center. >> No, you gone that. I'm going. I does the Intermodal
[1:21:04] Center sits on FDOT property? So we have we have ongoing discussions with FDOT
[1:21:10] regarding the lease for that property that doesn't touch the FTC right of way, but to
[1:21:17] be able to get to the Intermodal Center via the Apm Guideway we cross over the FTC
[1:21:24] right away at about 60 or 65 feet in the air in order to feed into the animal center.
[1:21:28] When we did the environmental ce or the projects, the Intermodal Center as well as
[1:21:33] the 08:00PM. And and the discussion about the airports, the Port connector. You're all
[1:21:40] viewed is as having independent utility, meaning any one of them could operate
[1:21:43] on its own. And so the Intermodal Center could operate on zone. It would just
[1:21:48] require surface transit to be able to get back and forth to it. At that point time it
[1:21:50] buses. >> So to switch gears, thank you, mark, on your question
[1:21:56] related to the connector. So none of there's no need for FCC U.S. all county property
[1:22:02] for the connector. And we're already in the peony phase for that project. And that is
[1:22:11] under the Transportation Department. That is the lead for that project we're looking
[1:22:16] around. I think 2032 for completion. So the question. >> While I have serious
[1:22:22] questions will ever be able to get. Use of their tracks just to get over their tracks. You
[1:22:31] know, since I know we don't have the state of west Florida west of where Henry plants
[1:22:37] tracks where we know the state of east Florida, everything east of FTC and the 3rd state
[1:22:44] between. If you see and CSX, I know there's a way of are getting over their tracks. We
[1:22:47] may not get access to their tracks, but there have to be a waste of getting over them.
[1:22:53] And I know if we have to go admitted to being we can. >> And for that project is as
[1:22:59] Mark was sent sharing, I think it's really about the connection between the
[1:23:03] automated people mover at going across over to the IMC. Once you get over to the IMC
[1:23:09] at that point, that's where we would use to connect to the light rail system to connect 3
[1:23:16] economic engines. So and that's on county property. Mr. Goh, thank you as well.
[1:23:27] >> Thank you, Commissioner Center America shows just won't be as a close eye here.
[1:23:29] Just again. I wanted to recognize JetBlue representation, Martin mayors
[1:23:35] state representative that the to almost every single day JetBlue and and Cody also with
[1:23:45] JetBlue is with us here again, we've we've concluded our negotiation with your lines.
[1:23:48] They they are in agreement with this county attorney's office has scrutinized it. Any
[1:23:56] administration. I think we're ready to go we'd like to be able to bring back the first
[1:24:00] of the signed agreements, if you will, on September 10th. What was done in 2011 is even
[1:24:06] though all airlines are in agreement with this, some of them take a little bit longer
[1:24:10] to get through their corporate processees 2011 emotions were here. Are the airlines that
[1:24:16] are ready to sign. But these other signatory airlines that still have to go through their
[1:24:22] their boards might not be up to get through to October November was a motion that
[1:24:26] said we're going to treat branches signatory status to the end of the year. And while
[1:24:30] you go through your your corporate process, if by the end of the year, you haven't
[1:24:36] signed you revert back to non signatory and you also pass everything back at at a non
[1:24:42] signatory rates. So that's what we anticipate bringing forward.
[1:24:48] >> Mr. Merabet a little confused. I know Chip who is here based on your earlier
[1:24:52] remarks, which did you like better chip who are legion was unclear. And there. You know
[1:24:56] who's with JetBlue? >> regular >> line. Great airline mosaic
[1:25:05] for, by the way. At good Christian, try their men services the best in the
[1:25:10] business anyway. Before goes out, Mister Mayor always ask about Perry Airport. And no,
[1:25:18] it's not me to outline much here. Are there no plans to expand their? To expand the
[1:25:27] airport? Well, tenants. >> Other than the developments that you have out there right
[1:25:34] now. >> That have been in process for for years. There's no
[1:25:41] significant developments. commissioner. >> The runway, I mean, enhance
[1:25:46] months from safety and lighting. You know, the conversations that we've had.
[1:25:52] to take space and actually do more construction on the airport. There's nothing in
[1:25:54] the media for chicken feet are right now. Occasionally you'll see him will coordinate with
[1:25:59] your office when we issue what we call request for a letter of interest. If we have an
[1:26:04] area that we think is good for development to see with the interested parties are. But we
[1:26:07] haven't had any of those recent. >> Nothing. Nothing recently.
[1:26:13] Okay. Good. end of innocence will be pleased about that. And then I know we have
[1:26:16] underway the studies. And we're looking forward to those results. That we can least get
[1:26:21] back to them. what goes into it. >> Of the safety assessment
[1:26:27] and the let's stay that study are on their way now. think and this probably
[1:26:30] >> If a a coordinating with them on any movements. The tower. Is that moving
[1:26:42] >> We continue to have the It's an FAA and tower. We are on their list. But the FAA
[1:26:45] tower there is is significantly down. But we continue to try to get a time
[1:26:48] frame for when they might be willing to replace that control tower. We continue to
[1:26:53] work with various branches of the FAA to get them to give us data on all the inspections
[1:26:58] that are taking place. And why can we not help? I raise this issue with really high level
[1:27:05] senior member of the FAA just a couple of weeks ago and said we want to be help. We're not
[1:27:09] trying to take a job want help. And then I think there was issues about the path
[1:27:14] piece that the lights they were repaired and then the rest of the papi's are all
[1:27:19] going to be replaced as part of the airfield lighting project. I think by the end of
[1:27:22] this year. Mike, thanks. So all the puppies on the airport actually get replaced by and
[1:27:26] this year. >> Thank you. Before we close. Council, it would make sure.
[1:27:33] So we have a consensus we need is that we have have a consensus on this. It's you're
[1:27:36] saying well, I mean, you're going actually vote. And next meeting. Yeah. Okay. Temper
[1:27:47] tentatively county back to for they were going to know if there's any concerns that have
[1:27:52] it now? No, I think I think everybody's raised their comments trying but I got it.
[1:27:58] Okay. last but Senator Wright underage Yeah, I've spoken with administration about this
[1:28:07] and we at our last workshop. We discussed the family trial court administrator program.
[1:28:15] If you remember, the chief judge was here and 2 other judges and judge team in
[1:28:17] Bristol. and judge out pristine. and the court administrator Joe D'Amico and
[1:28:26] we had a general consensus of it and then we went to the meeting and the meeting was
[1:28:33] cut short. regular commission meeting and we did not have a chance to. Finalize it. So I
[1:28:40] have asked the administration, you know, how do we now handle this? So it was I was advised.
[1:28:45] I should really just kind of bring this up today because of the fact that we did have a
[1:28:49] consensus. But and they have the money there. But need an approval so to speak. I
[1:28:57] thought we ready move ahead, says Thank you, But we but I was advised that they need to
[1:29:02] hear it right. So thank you, Senator, and for bringing us up today in the budget
[1:29:05] context, it was a budget discussion. >> It was something that
[1:29:09] originally Senator Rich had brought to the board after the initial priorities were set.
[1:29:16] But she brought a separate agenda item to you all. It was a discussion item only with no
[1:29:21] vote. And that is why I had asked her to bring it a word against to get the consensus
[1:29:26] from the board from a budget workshop perspective. And it was perfect because today was
[1:29:30] a budget workshop. >> Well, it budget hearing for that. We all had a consensus
[1:29:34] on that. >> It never made it to discussion on the budget But
[1:29:43] if you guys have consensus today, we'll move forward and that there's sufficient
[1:29:46] reserves for the onetime program. Again. And then we can re-evaluated after
[1:29:50] November. Don't come >> I believe we all really talked about this. We did. I
[1:30:01] just need. >> It's the family court program and and the program.
[1:30:02] What I'm trying to determine good to be decided to when we did it the first year, it
[1:30:08] caught us all surprised. But we support it. Reaction to to begin this That's correct.
[1:30:20] This and are we act being axed to increase the funding to the program? What are we being
[1:30:25] axed? I don't recall fully. What was the final decision? Are we increasing? Are just
[1:30:32] doing what we did the previous year? What is the requests? >> You want to do to Everett.
[1:30:40] I'm happy do what your item if you'd like it. It is to continue this program. They
[1:30:43] have implemented it. I have a whole list here of 209 families that have been
[1:30:50] referred to family Court services for services and 9 intially would be the same.
[1:30:58] The same would be the same to do it again on a one-time basis pending the outcome in
[1:31:03] November to see if there would be in consensus consensus, consensus consensus market
[1:31:09] you're talking about your your proposal got least 5 consensus here. Thank you.
[1:31:13] >> The tiny thank you very much. Needed. Thank you. Appreciate Mark. Thank you. A
[1:31:21] great presentation. Thank you very much. Thank you, commissioners. Thanks for
[1:31:23] getting his game. It to factor. >> And and thank you, mayor
[1:31:29] and commissioners for your support is a big, big, big deal Mark, thank you for
[1:31:32] putting up for my bed since he Move to adjourn.