THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will approve the transfer of reserve funds within the Broward County Aviation Department's Operating Funds in order to cover additional operating expenses for Fiscal Year 2014.
On May 6, 2014, the Director of Aviation presented the proposed Fiscal Year 2015 Budget for the Broward County Aviation Department (BCAD) to the Board. During this presentation, the Director of Aviation advised the Board relative to an upcoming action to cover additional operating expenses in Fiscal Year 2014 in the amount of $5.1 million.
Some of these operating expenses are due to contract increases for overtime and pension benefits costs for law enforcement and fire rescue personnel in the amount of $2.1 million. Additionally, due to contract changes and transition into new contracts for janitorial and parking management services, operating costs in these contracts increased in the amount of $1.6 million. Other unanticipated operating expenses include $700,000 for communication, computer maintenance and software to support Airport’s business functions, as well as $200,000 for projected salaries and benefits expenses for BCAD.
Also, as discussed by the Aviation Director at the Budget presentation, the Baggage Cart Concession operated by Smarte Carte has resulted in a significant loss of revenue to BCAD. Therefore, it is necessary to modify the operating budget in the amount of $500,000 to make payments to Smarte Carte based on the current fee structure for the baggage cart operation. In a separate action as part of this Commission Agenda, BCAD is requesting Board approval for changes to the Baggage Cart Concession’s fee structure in order to mitigate the operating losses at the Airport. |