Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Finance
Information
Requested Action
title
MOTION TO ADOPT Resolution No. 2020-422 directing the County Administrator to publish a Notice of Public Hearing to be held on September 22, 2020, at 10:00 a.m., in Room 422 of the Governmental Center to consider adoption of a proposed Resolution amending the Broward County Administrative Code, the title of which is as follows:
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF BROWARD COUNTY, FLORIDA, PERTAINING TO RATES, FEES, AND CHARGES AT BROWARD COUNTY’S FORT LAUDERDALE-HOLLYWOOD INTERNATIONAL AIRPORT; AMENDING SECTION 39.2 AND EXHIBIT 39.A OF THE BROWARD COUNTY ADMINISTRATIVE CODE (“ADMINISTRATIVE CODE”), TO REFLECT CHANGES TO RATES, FEES, AND CHARGES; AND PROVIDING FOR SEVERABILITY, INCLUSION IN THE ADMINISTRATIVE CODE, AND AN EFFECTIVE DATE.
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Why Action is Necessary
The Broward County Charter requires the posting of notice and a public hearing for adoption of amendments to the Broward County Administrative Code (“Administrative Code”).
What Action Accomplishes
Provides for a Public Hearing date to consider adoption of a resolution to amend Chapter 39 of the Administrative Code to update its rates, fees, and other charges in accordance with the Airline-Airport Lease and Use Agreement.
Is this Action Goal Related
No
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The Broward County Aviation Department (“BCAD”) is requesting adoption of a Resolution directing the County Administrator to publish a Notice of Public Hearing to be held on Tuesday, September 22, 2020, at 10:00 a.m., to consider adoption of a proposed Resolution Amending Chapter 39 of the Administrative Code, specifically, Section 39.2, “Rates, Fees, and Charges-Fort Lauderdale-Hollywood International Airport,” and Exhibit 39.A, “Broward County Aviation Department.”
In accordance with the Airline-Airport Lease and Use Agreement (“Agreement”), terminal rental rates, facility usage fees and landing fees are to be reviewed and adjusted at the beginning of each Fiscal Year. The contractual rate making formulas that are defined in the Agreement are based on a residual rate making methodology, which requires rates to be set at a level that assures expenditures are adequately covered. This methodology uses BCAD’s budgeted revenues, expenses, debt service and certain capital outlays to calculate rental rates, facility usage fees and landing fees.
BCAD will present the Fiscal Year 2021 budget to the Broward County Board of County Commissioners during a workshop on August 27, 2020. BCAD also presented and reviewed the proposed Fiscal Year 2021 operating budget and changes to rates and charges with the Airline-Airport Affairs Committee (“Committee”) on August 4, 2020. While the Committee’s approval of the operating budget is not required under the Agreement, the Committee concurred with the proposed charges, which are included in Exhibit 2.
Based on the amended rates, the average airline Cost per Enplaned Passenger (“CPE”) is projected to be $12.01 in Fiscal Year 2021. The budgeted CPE for Fiscal Year 2020 is $7.70. The increase from Fiscal Year 2020 to Fiscal Year 2021 is primarily due to a severe decline in passenger activity stemming from the emergence of the COVID-19 pandemic.
The proposed charges will be effective October 1, 2020.
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
Revenues from the Chapter 39 rates and charges are estimated to be approximately $132 million for Fiscal Year 2021.