Miami International Airport gets firm to engineer revenue gains

As Miami International Airport launches major future expansions that will be funded by bond borrowing, it plans to increase use of a contract for an outside traffic engineer as required in bond covenants.

This week a county committee is considering a request drawn by county Chief Operations Officer Jimmy Morales to approve an expanded $6 million contract for five years of services by a San Francisco firm to act as that traffic engineer. The same firm is on a contract that is to expire April 30.

The request does not specify the future airport expansions, but the airport has a $5 billion capital improvement program timed for 2025 that would, among many other things, expand aircraft parking positions.

On drawing boards is also a massive vertical air cargo expansion plan that is now in negotiations with private operator CR USA Airport Management as the airport approaches a limit in its cargo capacity in the face of rising cargo demands. In addition, multiple air carriers have discussed expansions at Miami International Airport as the airport last year recorded more than 50 million passengers, a new high.

According to the memo from Mr. Morales to commissioners, the company will evaluate the county aviation department’s “ability to generate revenues sufficient to satisfy debt service requirements and to recommend rates and charges to the county’s airport system to meet the county’s rate covenant.”

The consultant the county will retain is required in the covenant to be an independent firm “having a nationwide and favorable repute for skill and experience” to perform the duties that the trust agreement imposes on the traffic engineer.

According to the memo, the consultant will:

■Evaluate the aviation department’s economic base, forecast international and domestic passenger and cargo traffic, and forecast revenues and expenditures at Miami International Airport.

■Participate in investment rating agency, credit insurer, and investor presentations.

■Evaluate rate covenant compliance and rents, fees and charges for facilities and services.

■Evaluate the financial impact of facilities built with airport revenues.

■Recommend rents, fees and charges for the airport system.

The only firm to respond to a county request for qualifications was LeighFisher Inc. of San Francisco. More than 18,000 vendors were invited to compete for the contract, the memo from Mr. Morales said, 60 actually viewed the notification, six downloaded the solicitation package but only LeighFisher responded.

Because the firm isn’t local, the memo said, the county reached out to the firms that viewed the solicitation but didn’t bid, and all said they don’t provide the services that the county needs.

The expiring contract with LeighFisher is for $8,887,500 for 8.5 years. The increased annual allocation in the future contact, Mr. Morales writes, is due to expected rising use as the county issues more aviation bond packages and thus a more frequent need for financial feasibility studies.

“Additionally,” the memo notes, “to keep up with emerging trends in air traffic, both domestic and international, [the aviation department] will be requiring traffic forecasts on a more frequent basis.”