Sarasota-Bradenton International Airport expects surplus again in 2017

Airport President Fredrick “Rick” Piccolo spent most of Monday morning assuring the Sarasota-Manatee Airport Authority board that the fiscal year 2017 budget is based on conservative measures.

“I always try to underestimate revenues and overestimate expenses so we’re not caught in a budget shortfall,” Piccolo said.

The budget decreases landing fees for airlines, reduces the airport’s operating expenses and projects a $1.6 million surplus in net revenues. The estimated $1.6 million in net revenue goes into the airport general purposes account, which can be used for “any lawful purpose.”

Piccolo noted that SRQ has reduced costs for airlines at a time when the airport’s main competitors, Tampa International Airport, St. Pete-Clearwater International Airport and Southwest Florida International Airport in Fort Myers, are raising airline costs. The board unanimously passed a resolution in the Monday afternoon meeting to hold a public hearing for the budget in September. Board member Doug Holder wasn’t present at either the morning budget workshop or the afternoon board meeting.

“If we’re lowering costs to these airlines, why are they decreasing service?” board member and SMAA secretary Peter Wish asked.

Chairman of the board Carlos Beruff, who took a day off from campaigning for the U.S. Senate race to attend the meeting, and board member Ann Moore also pressured Piccolo on the estimated decrease of 20,000 enplanements.

“We built this budget based on the worst-case scenario,” Piccolo said.

SRQ lost a JetBlue flight to LaGuardia Airport in New York and United Airlines opted to stop one of its Chicago flights over the summer. While United may resume the year-round Chicago service, Piccolo said it’s possible airline officials will change their minds and move the flight to another airport, and he built the budget to reflect that possibility.

“I don’t want you to get discouraged with the picture I’m painting,” Piccolo said. “I do this on purpose.”

While competing airports do not necessarily worry about losing flights to SRQ, Piccolo said it’s always in the back of his mind that airlines will choose to consolidate their SRQ flights to Tampa International or another competing airport.

Piccolo emphasized his focus on creating a different “boutique” experience at SRQ, one that travelers will choose for the amenities and services provided over other area airports. He compared SRQ and Tampa International Airport to grocery store choices: SRQ is to Whole Foods as Tampa International is to Publix.

Piccolo touted the airport’s low parking rates compared to Tampa International and Southwest Florida International. The budget does not include possible parking rate increases come winter, when Piccolo hopes SRQ’s planned covered parking will be finished. The covered parking, along with other services and amenities, including a curbside remodel and 21 other capital improvement projects that are 65 percent funded by state and federal grants, contribute to fulfilling Piccolo’s future hopes for SRQ. He predicts as traffic continues to congest Gulf Coast highways, fewer locals will want to make the drive to fly out of Tampa International and will, despite the added cost, opt instead for SRQ’s accessibility, proximity and level of customer service. He also noted about 70 percent of SRQ’s traffic is from inbound passengers.

The company facilitating the curbside remodel, Magnum Builders of Sarasota, asked the board for a time extension for the project. The remodel, which includes a pavement reseal, replacement of fixtures such as trash cans, ashtrays, seating, planters and recycle containers, and renovation of the crosswalk overhangs, was derailed by wet weather and unexpected discoveries once the company dug into the building, Piccolo said.

“This terminal was built 25 years ago,” he said. “The fire sprinkler main had to be re-done and that took time to re-engineer and go through permitting with the fire marshal and then get approved and then order the materials and put it together.”

Kent Bontrager, vice president of engineering and environmental affairs for SRQ, asked for an additional month on top of the 105 days Magnum Builders asked for.

Beruff balked at giving the company the time it asked for. The original contract on the project was signed for 10 months and just under $5 million. Beruff, who runs home-building company Medallion Home, said the company “knew what they signed up for.” After some discussion with Bontrager, Beruff subsided.

“I’m OK with 105 days,” Beruff said. “Well, I’m not OK with it, but I’ll put up with it. They should’ve done their homework and known where that fire line was.”

The board unanimously passed an extension on the contract for 105 days. This schedules the curbside remodel to be done by November, before tourist season swings into full gear.

This story was originally published August 22, 2016 at 5:38 PM with the headline "Sarasota-Bradenton International Airport expects surplus again in 2017."