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MARCH 09, 2023
A Joint Workshop Meeting of the
with the
Airports Special Management Committee, was held on this date in the Training and Conference Center at
Southwest Florida International Airport (RSW), with the following members present:
Ray Sandelli
AIRPORTS SPECIAL MANAGEMENT COMMITTEE
Randy Krise, Chairman
–Early Departure at 10:30am
Robbie Roepstorff, Vice-Chair
REGIONAL MEMBERS:
-Absent
The Chairman called the meeting to order at 10:02 a.m.
EXECUTIVE DIRECTOR
Executive Director Ben Sigel informed the Board that this workshop would cover three different topics; parking
fees at Southwest International Airport, fuel prices at Page Field, and hanger rental pricing at Page Field. Mr.
Sigel stated that input on these three items would assist Staff in preparing a preliminary 2024 Budget. Mr. Sigel
introduced Deputy Executive Director of Administration and Chief Financial Officer, Brian McGonagle to
present today’s workshop.
PRESENTATION
Topic:
Preliminary FY 2023-2024 Budget
Presented by:
DISCUSSION
Deputy Executive Director of Administration and Chief Financial Officer, Brian McGonagle narrated a detailed
PowerPoint presentation examining three areas of fiscal focus at Southwest Florida International Airport (RSW)
Parking at Southwest Florida International Airport (RSW):
Mr. McGonagle informed the Board that there has not been a modification to the pricing for both short- and
long-term parking at RSW since 2016. As a result of this, parking availability has become an issue in the short-
term parking lot. Executive Director, Ben Sigel informed the Board that while sixty-five (65) percent of the
visitors utilizing the short-term parking lot are in and out within six hours, the issue is the thirty-five (35)
percent of visitors who are using the short-term parking garage for an extended time period. Commissioner
Hamman questioned what the industry standard was for long-term parking in short-term lots and Collier County
Representative, R. Scott Cameron questioned if Staff is looking into the ability for visitors to reserve or pre-pay
for parking through apps or on the website. Mr. Siegel stated that currently the industry standard is eighteen
(18) percent for long-term parking in short-term lots and at this time RSW does not possess the technology to
implement reserved or prepaid parking. Mr. Siegel stated that if the Board was interested in researching the
implementation of that technology, Staff would be happy to present a report at a future meeting.
Deputy Executive Director of Administration and Chief Financial Officer, Brian McGonagle informed the
Board that the national average daily price for short-term lots in March 2022 was $22 per day and in March
2023 was $24 per day. The national average daily price for long-term lots in March 2022 was $14.80 per day
followed by the proposed fees. He informed the Board that it was Staff’s recommendation that the proposed rate
changes would keep Southwest Florida International Airport competitive not only in the market, but with
independently owned off-site lots which charge on average, $12 per day not including taxes, and surcharges.
First Twenty (20) Minutes Free
$3.00 Per Hour
$18.00 Daily Maximum
Proposed Short Term Parking Garage
First Twenty (20) Minutes Free
$3.00 Per Hour
$24.00 Daily Maximum
Daily After First Week $10.00
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Executive Director, Ben Siegel stated that Staff expects it to take one year to see if the price increase in the
short-term parking lot creates a change in capacity issues. Commissioner Pendergrass stated that the extent of
the daily and weekly rate increase causes him concern and that Staff would need to be transparent with visitors
as to the reason for the rate changes. Mr. McGonagle explained that the average yearly price to run and
maintain parking is $4,500,000 and Mr. Siegel explained the increase in revenue would assist in covering that
cost, as well as raise the Port Authority’s ability to leverage future capital bonds. Airports Special Management
Committee (ASMC) Vice-Chair, Robbie Roepstorff stated that she didn’t think the proposed rate increase for
the short-term parking lot was substantial enough to deter visitors from using the short-term parking lot for long
periods of time, and stated there should be a price break for visitors who park in the short-term lot for less than
eight hours, and a drastic price increase for those who park over eight hours. This would free up additional spots
at a quicker rate. Mr. Siegel stated that while Staff does not expect the proposed rates to fix the short-term
parking garage issues completely, Staff does expect the changes to free up additional spots.
Following an extensive continued discussion regarding price changes, transparency with RSW visitors, short-
term parking lot capacity, Executive Director, Ben Siegel recapped the discussion stating that Staff would
prepare an updated proposed budget with a weekly long-term parking rate of $60 per week, and a short-term
daily maximum of $24, with no other changes.
Deputy Executive Director of Administration and Chief Financial Officer, Brian McGonagle provided the
Board with a review of the “cost-plus” pricing system that is currently in place at Page Field for calculating the
cost of fuel. Mr. McGonagle stated, that while the pricing system was profitable in the early 1990’s when it was
first implemented, it currently does not cover Page Field’s expenses. Staff would recommend that Page Field
switch to the industry standard pricing that would allow for Page Field to recover all expenses and costs
associated with fuel. Executive Director, Ben Siegel stated that with the current pricing system in place, fuel
buyers at Page Field are currently being charged $2.07 over the purchase price of Jet A fuel, and $1.15 over the
purchase price of Avgas. Current pricing allows for Page Field to make a profit of $0.09 per gallon on Jet A
fuel, and creates a loss of $0.85 per gallon of Avgas. Adopting the proposed fuel pricing changes would provide
Page Field with an estimated $0.93 per gallon profit for Jet A fuel and a $1.45 per gallon profit for Avgas.
Collier County Representative, R. Scott Cameron questioned Staff on what the cost of gas would be if discount
programs that are currently in place would remain and which is currently the less expensive option - truck fuel
or self-serve fuel. Page Field General Aviation Director, Scott Sheets stated that discount systems would
remain; however, there would be fewer tiers. Mr. Sheets stated that the proposed changes would also move
more customers to the more profitable “self-serve” tanks, which are cheaper to the customer, from the “full-
service” fuel trucks that Page Field is currently experiencing a loss on. Executive Director, Ben Siegel stated
that the reason for the proposed change was to cover cost, or make a slight profit. In the current market the
change in cost structure would take the price of fuel from roughly $5.65 per gallon to $6.88 per gallon. Mr.
Siegel stated that Staff would compile a report with the new pricing methodology and what its pricing effects
would be for the Board to review at a future workshop.
Executive Director, Ben Siegel stated that in 2023, Page Field adopted a four percent increase in hangar rental
rates on all hangars regardless of size and age. Recent appraisal recommends a twelve (12) to twenty-six (26)
percent increase based on hangar size and age to remain marketable. Mr. Siegel informed the Board that there is
currently an estimated 200 person waiting list for hanger rental space at Page Field. Page Field General
Aviation Director, Scott Sheets stated that Page Field is currently charging ten (10) to fifteen (15) percent less
for hanger space than other comparable airports. Commissioner Hamman questioned how the rate increases
would come to the Board for approval, and Commissioner Greenwell questioned if additional hangers were
being constructed to meet the growing demand. Mr. Siegel stated currently eighty-one (81) additional hangars
are being constructed on the southeast corner of the property, and rate changes would be brought to the Board in
October when they are presented with the Rate and Charges Book.
ADJOURN:
The Chairman adjourned the meeting at 11:05 a.m.
By: ________________________________
___________________________________________
Minutes of 030923PW