TECHNICAL REPORT

AIR TRAFFIC CONTROL TOWER

PRELIMINARY BENEFIT/COST ANALYSIS (2008)
Hernando County Airport
Brooksville, Florida

prepared for:

Hernando County, Florida

January 2008

prepared by:

uadrex Associates, Inc.

Airport Development Services

TABLE OF CONTENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II.

AIRCRAFT ACTIVITY SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

III. AIRCRAFT ACTIVITY FORECASTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

IV. ATCT BENEFIT/COST RATIO ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

V.

A.

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

B.

Critical Values and Other FAA Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

C.

Base Case Scenario Benefit/Cost Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

D.

Alternate Case Scenario Benefit/Cost Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

E.

Break-Even Scenario Benefit/Cost Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

APPENDIX A

Supporting Documentation

APPENDIX B

Detailed B/C Calculations - Base Case Scenario

APPENDIX C

Detailed B/C Calculations - Alternate Case Scenario

APPENDIX D

Detailed B/C Calculations - Break-Even Scenario

ATCT Benefit/Cost Analysis

I. Introduction
Quadrex Associates, Inc., was retained by the Hernando County (FL), to provide professional
planning services for the development of the Benefit/Cost (B/C) documentation necessary for
establishing the feasibility of a proposed new Air Traffic Control Tower (ATCT) at the Hernando
County Airport (BKV). This information is intended for determining the potential range for federal
participation in costs associated with the annual operation of the Control Tower by the Federal
Aviation Administration (FAA) under the Contract Tower Program (CTP).
The following tasks were incorporated into the study:
1. Review FAAs current (2007) Terminal Area Forecast (TAF)
2. Develop pro-forma Benefit/Cost Analysis using FAA data
3. Review other site specific data relevant to the B/C analysis (master plan forecasts, based
aircraft, etc.)
4. Develop pro-forma alternative B/C reflecting site-specific data and other sources
The following report narrative presents the findings and recommendations of the study. The
comments and opinions expressed in this report are those exclusively of Quadrex Associates and do
not reflect the position of the Federal Aviation Administration or that of any other federal, state, or
local agency.
II. Aircraft Activity Summary
Hernando County Airport (BKV) is a general aviation airport located six miles southwest of
Brooksville, Florida. The Airport has two runways, Runway 9/27 which is 7,001 feet long and is
enhanced by a precision instrument landing system (ILS) for approaches to Runway 9 and Runway
03/21 which is 5,015 feet long . Figure A illustrates the layout of the Airport. According to a
recent aircraft census conducted by airport management, there are currently 168 aircraft based at the
Airport. Table 1 provides a breakdown of based aircraft by category. It is noted that the total
aircraft count is somewhat higher than the information on record with the FAA. The census was
conducted to provide the FAA with more current data to update the national airport database. This
new information will be used to develop an alternate scenario for the B/C calculations.
As an airport currently without an operational air traffic control tower, aircraft activity
characteristics (i.e., number of operations1, aircraft mix, etc.) at the airport are not officially counted
on a regular basis. Since this information is a fundamental component used for determining the need
and justification (benefit) for air traffic control services, a review of other data sources was
conducted. Normally, without an ATC Tower to keep contemporaneous records of aircraft activity,
the airport activity at BKV would be estimated through the preparation of a master plan or airport
layout plan update or from the FAA data developed from periodic inspections of the airport.

An operation is counted as either an aircraft take-off or landing.

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Hernando County Airport

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Hernando County Airport

Airport Development Services

QUADREX ASSOCIATES, INC.

Figure A
EXISTING FACILITIES
Hernando County Airport

ATCT Benefit/Cost Analysis

Page 2

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ATCT Benefit/Cost Analysis

Table 1
Based Aircraft Census
Hernando County Airport
Aircraft
Type

Actual A/C Percent of Total

Number
Aircraft

FAA TAF
A/C Data

Single Engine Piston

139

77.6%

130

Multi-engine Piston

12

9.5%

12

Multi-engine Turbine

17

11.5%

Helicopter

14

1.3%

Other

0.0%

Total

185

100.0%

156

Source: FAA 2007 Terminal Area Forecast and BKV Airport Management Records

This information is also generally used as input data in the preparation of the FAAs Terminal Area Forecast
(TAF). Tthe FAAs TAF for BVK used a 2006 baseline figure of 77,483 total operations 2. Table
2 presents the breakdown of operations by type of activity as estimated by the FAA.
Table 2
Estimated Aircraft Operations (CY 2006)
Hernando County Airport
Operations
Type

Annual
Operations

Percent of Total
Operations

Itinerant
Air Carrier
Air Taxi/Charter
General Aviation
Military

0
468
34,264
779

0.0%
0.6%
44.2%
1.0%

Subtotal Itinerant

35,511

45.8%

Local
General Aviation
Military

40,804
1,168

52.7%
1.5%

Subtotal Local

41,972

54.2%

Total

77,483

100.0%

Source: FAA 2007 Terminal Area Forecast (CY 2006 for BKV)

Reference: FAA Terminal Area Forecast, FY 2007-2025

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Hernando County Airport

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ATCT Benefit/Cost Analysis

III. Aircraft Activity Forecasts

Table B-1 in Appendix B presents the FAAs 2007-2025 TAF projections for future activity at BKV.
As this table indicates, the FAAs forecast projects only marginal annual growth of approximately
1.3 percent for general aviation air traffic activity (including both itinerant and local operations) over
the next 15-year period.
As an alternative to the current TAF, the FAA will consider a master plan forecast that has been
recently approved (i.e., within the past 2 years). Since the Airport has recently completed a forecast
update as part of the ongoing Master Plan update, a separate Alternate Case scenario was
developed using the activity forecasts. In addition, the based aircraft data from the Airport Master
Plan Inventory will be used to estimate average aircraft values for the Alternate Case scenario.
Table C-1 presents the Master Plan forecast broken down by individual years. It should be noted
that the FAA Airports District Office has reviewed and approved these forecasts as being consistent
with the Terminal Area Forecast (see Appendix A, Supporting Documentation).
Also, military aircraft operations from both the Terminal Area Forecast and the Master Plan Update
appear to be significantly underestimated. The Airport currently is the home of a Florida Army
National Guard helicopter unit and supports the training activities of other military units, most
notably the Coast Guard operating C-130's out of the St. Petersburg Clearwater International
Airport. The Airports long runway with an ILS, a DOD fueling contractor on-site, and relatively
uncongested and unpopulated airspace, make BKV an attractive alternative for military flight
training. It is conservatively estimated that 25 itinerant and 100 local military operations per week
currently occur at BKV and no doubt this activity would increase if positive controlled airspace were
established at the Airport (See Appendix A, Supporting Documentation). This adjustment in military
activity was included in the Alternate Forecast (Table C-1) in place of the Master Plan military
figures to represent a reasonable estimate of military training activity is occurring at the Airport.

IV.

ATCT Benefit Cost Ratio Analysis

A. General
The FAAs Air Traffic Division administers the funding for the operation of Level 1 VFR air traffic
control towers through contract agreements with qualified ATC contractors on a regional basis. This
Contract Tower program has proven to be very effective in significantly reducing the cost of
providing air traffic control services so that many locations, which would have otherwise seen their
ATC services eliminated due to FAA budget constraints, can continue to benefit from the services
of an Air Traffic Control Tower facility.
The decision process for the funding of the operation of contract tower locations is primarily
determined by a Benefit/Cost analysis. FAA Report APO 90-7, Establishment and Discontinuance
Criteria for Air Traffic Control Towers outlines the procedures for calculating Benefit/Cost (B/C)
ratios.
Costs are those direct costs associated with the operation of the Control Tower including labor and
other expenses. Benefits are measured in terms of lives and property saved by the prevention of
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Hernando County Airport

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ATCT Benefit/Cost Analysis

midair collisions and other accidents and the savings in flight time by providing controlled airspace
around the Airport. The benefit of the Control Tower must be greater than the cost (benefit/cost
ratio of greater than 1.0) order to qualify for full funding under the FAAs Contract Tower program.
The FAA also manages a separately funded Cost-Sharing program which allows airports currently
in the Contract Tower Program with B/C ratios under 1.0 to continue to participate in air traffic
control services. This cost-sharing program uses the B/C ratio to determine the pro-rated share of
FAA costs with the balance contributed by the airport sponsor.
B. Critical Values and Other FAA Assumptions
The FAA in the B/C analysis process uses various critical values that represent the generic cost
of specific items and are set by the General Accounting Office (GAO). The critical values for items
used in the B/C Analysis include:
Table 3
FAA Critical Values & Assumptions
Statistical Life................................................. $ 3,000,000
Serious Injury..................................................
580,700
Minor Medical Injury......................................
42,900
GA Travelers Time (per hour).......................
32.50
Other Travelers Time (per hour)....................
28.00
Discount Rate (for net present value)..............
7%
Source: FAA Office of Policy and Plans (Base Year 2002)

Generally, FAA policy considers new entrants into the Contract Tower Program initially using the
establishment criteria of APO 90-7 which applies the statistical means for accident risk as a
primary factor in the B/C calculations. Also, for new entrants, projected operations are discounted
by 7.5 percent to account for the number of operations that would not be handled by an ATCT
facility open for at least 12 hours daily. The establishment period for new ATC Tower facilities
entering the Contract Tower Program generally applies to the first one to two years of operation,
depending on the point the control tower enters the program since the FAA calculates the B/C
biennially. All subsequent calculations of the B/C ratio by the FAA after the initial establishment
period are conducted using the discontinuance criteria.3
For existing Contract ATC Towers in subsequent years (Years 3-15), the B/C calculation is
conducted using the discontinuance criteria which considers the upper bounds of the statistical risk
of accidents. Projected operations are not discounted in the discontinuance scenario since it is
assumed that all operations handled by ATC are counted.

It is the FAAs current policy to consider candidate new entrants into the Contract Tower Progam only if their
establishment B/C ratio equals or exceeds 1.0.
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Hernando County Airport

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ATCT Benefit/Cost Analysis

While aircraft activity is associated with the benefit side of the equation, costs are represented by
the FAAs annual cost to operate the ATC as charged by the regional FAA contractor. Generally,
under the federal program, the estimated annual cost for an entry level contract control tower is
expected to range from $350,000 to $400,000 while the FAA generally uses a figure of $450,000
to estimate the annual ATC costs for new CTP applicants. For B/C calculations, the $450,000 cost
will be used to represent a conservative estimate for ATC costs for both the Base Case and Alternate
Case scenarios at BKV. Also, in both the base and alternative cases, the annual ATC cost is held
constant (as is FAA policy) throughout the 15-year period and is only adjusted for net present value.
C. Base Case Scenario Benefit/Cost Analysis
The Base Case scenario represents the projected Benefit/Cost ratio that would result from using the
FAAs current data for BKV, the current Terminal Area Forecast (Table B-1) and other standard
assumptions. In other words, this B/C would be the likely result if the FAA were asked to provide
a B/C for the Airport right now without receiving additional information. Appendix B, Table B-2
presents the summary benefit/cost calculation for the Base Case (Years 1-2 Establishment)
scenario assuming a CY 2010 startup and illustrates the cumulative and discounted life cycle costs
and benefits of the control tower over the 15-year period. The discounted cumulative cost for the
tower operation at $450,000 per year over the 15-year period is $4,385,461 while the value of the
ATC tower benefits at BKV is only $3,060,624. Dividing benefits by cost yields a ratio of 0.70.
Under this scenario, the Airport would not be eligible to participate in the Contract Tower Program
as a new entrant.
The FAA generally does not provide a discontinuance B/C for proposed new entrant locations.
However, the B/C for discontinuance for the Base Case scenario can be determined by applying the
same basic data (with no discounting of operations unlike the 92.5 percent factor discount for
establishment calculations). The discounted cumulative cost for the tower operation over the 15year period remains at $4,385,461 while the value of the ATC tower benefits increases marginally
to $5,238,439 with a resultant B/C ratio of 1.19. Table B-3 presents the summary benefit/cost
calculation for the Base Case (Years 3-15 Discontinuance) scenario. Assuming the Airport
somehow managed to enter the Contract Tower Program, costs for operating the Control Tower
would be eligible for full funding under the discontinuance criteria. In this case, the County would
not be responsible for paying a pro-rata share of the cost of operating the ATC Tower facility under
the FAAs separate cost-sharing program which is available for assisting existing ATCT facilities
to remain open with B/Cs less than 1.0. Appendix B contains the detailed calculations of the
benefits from the Alternate Case scenario.

D. Alternate Case Scenario Benefit/Cost Analyses

An alternate scenario was developed using the Airports current site-specific data. This included
the current number of based aircraft and the future activity projected from using the 2006 Master
Plan forecasts. Using the existing based aircraft count from Table 1 and the proposed alternate
forecast from Table C-1 as the input for aviation activity, Table C-2 presents the summary
benefit/cost calculations for the Alternate Case (Years 1-2 Establishment) scenario. As the table
illustrates, while the discounted cumulative ATCT cost remains the same ($4,385,461), the
discounted value of the ATC tower benefits is calulated to be $4,778,368 with the resultant B/C at
1.09. Under this scenario, the Airport would be eligible to enter the Contract Tower Program with
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Hernando County Airport

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ATCT Benefit/Cost Analysis

the FAA covering the entire operational costs of the new ATC Tower location. For the Alternate
Case (Years 3-15 Discontinuance), Table C-3 shows the value of the ATC Tower benefits
increasing to $8,287,258 with a resultant B/C ratio of 1.89 and thus, the costs for operating the
Control Tower would be eligible for continued full funding by a comfortable margin. Appendix C
contains the detailed calculations of the benefits from the Alternate Case scenario.
E. Break-Even Scenario Benefit/Cost Analysis
While outside the scope of this analysis, another forecast of aviation activity was developed to
illustrate the approximate levels of aircraft activity that would result in a Benefit/Cost ratio equaling
1.0 under the establishment criteria and thus allow the Airport to enter into the Contract Tower
Program. Generally, a total of 90,500 annual operations extended over the 15-year period with no
growth would result in a break-even 1.0 B/C ratio. Table D-1 presents the Break-Even forecast data
showing the level operations that would have to occur in order to reach the 1.0 B/C threshold. Table
D-2 presents the detailed B/C calculations.

V. Conclusions and Recommendations

Based on the analysis using the current based aircraft and the forecast of aviation activity from the
Airport Master Plan Update, it appears that full funding of ATC services at Hernando County
Airport under the FAAs Contract Tower Program would be likely once the facility is constructed.
If the decision is made to go forward with the development of a new ATC Tower facility, it is
recommended that formal application for entry into the FAAs Contract Tower Program office be
submitted immediately so that the operational cost of the tower facility can be programmed into the
FAAs FY 2010 budget.

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Hernando County Airport

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APPENDIX A
SUPPORTING DOCUMENTATION

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION
> 1 ASSOC CITY:
> 2 AIRPORT NAME:

BROOKSVILLE
HERNANDO COUNTY
3 CBD TO AIRPORT (NM): 06 SW
GENERAL
10 OWNERSHIP:
PU
> 11 OWNER:
HERNANDO COUNTY
> 12 ADDRESS:
16110 AVIATION LOOP DR
BROOKSVILLE, FL 34609
> 13 PHONE NR:
352-754-4061
> 14 MANAGER:
DON SILVERNELL
> 15 ADDRESS:
16110 AVIATION LOOP DR
BROOKSVILLE, FL 34609
> 16 PHONE NR:
352-754-4061
> 17 ATTENDANCE SCHEDULE:
ALL
ALL
0700-1800

4 STATE: FL
6 REGION/ADO: ASO/ORL
SERVICES
> 70 FUEL:
100LL A
> 71
> 72
> 73
> 74

AIRFRAME RPRS: MAJOR

PWR PLANT RPRS: MAJOR
BOTTLE OXYGEN: HIGH
BULK OXYGEN:
HIGH
75 TSNT STORAGE:
HGR, TIE
76 OTHER SERVICES:
AVNCS, CHTR, INSTR, RNTL, SALES

RUNWAY DATA
RUNWAY IDENT:
LENGTH:
WIDTH:
SURF TYPE-COND:
SURF TREATMENT:
35 GROSS WT:
SW
36 (IN THSDS)
DW
37
DTW
38
DDTW
> 39 PCN:
LIGHTING/APCH AIDS
> 40 EDGE INTENSITY:
> 42 RWY MARK TYPE-COND:
> 43 VGSI:
44 THR CROSSING HGT:
45 VISUAL GLIDE ANGLE:
> 46 CNTRLN-TDZ:
> 47 RVR-RVV:
> 48 REIL:
> 49 APCH LIGHTS:
OBSTRUCTION DATA
50 FAR 77 CATEGORY:
> 51 DISPLACED THR:
> 52 CTLG OBSTN:
> 53 OBSTN MARKED/LGTD:
> 54 HGT ABOVE RWY END:
> 55 DIST FROM RWY END:
> 56 CNTRLN OFFSET:
57 OBSTN CLNC SLOPE:
58 CLOSE-IN OBSTN:
DECLARED DISTANCES
> 60 TAKE OFF RUN AVBL (TORA):
> 61 TAKE OFF DIST AVBL (TODA):
> 62 ACLT STOP DIST AVBL (ASDA):
> 63 LNDG DIST AVBL (LDA):

03/21
5,015
150
CONC-G

09/27
7,002
150
CONC-G

50.0
75.0
135.0

90.0
130.0
230.0

MED
NPI - G / NPI - G
/
/
/
- / - / /
/

MED
PIR - G / NPI - G
P4L / P4L
/
/
- / - / /
MALSR /

A(V) /
/
TREES /
/
44 /
2,150 /
0B /
44:1 /
N /

LOC ID: BKV

FAA SITE NR: 03083.*A
5 COUNTY:
HERNANDO FL
7 SECT AERO CHT: JACKSONVILLE
BASED AIRCRAFT
90 SINGLE ENG:
91 MULTI ENG:
92 JET:
TOTAL:

FACILITIES
> 80 ARPT BCN:
CG
> 81 ARPT LGT SKED:
DUSK-DAWN
> 82 UNICOM:
123.000
> 83 WIND INDICATOR:
YES-L
84 SEGMENTED CIRCLE: YES
85 CONTROL TWR:
NONE
86 FSS:
SAINT PETERSBURG
87 FSS ON ARPT:
NO
88 FSS PHONE NR:
89 TOLL FREE NR:
1-800-WX-BRIEF

18 AIRPORT USE:
PUBLIC
19 ARPT LAT:
28-28-24.9000N ESTIMATED
20 ARPT LONG:
082-27-19.5000W
21 ARPT ELEV:
76 SURVEYED
22 ACREAGE:
2498
> 23 RIGHT TRAFFIC:
NO
> 24 NON-COMM LANDING:
NO
25 NPIAS/FED AGREEMENTS:NGPRY
> 26 FAR 139 INDEX:
> 30
> 31
> 32
> 33
> 34

PRINT DATE:
01/21/2008
AFD EFF
12/20/2007
Form Approved OMB 2120-0015

AIRPORT MASTER RECORD

A(NP)
TREES
50
1,900
0B
34:1
N

/
/
/
/

PIR /
/
/
/
/
/
/
50:1 /
N /

C
TREES
55
2,400
0B
40:1
N

/
/
/
/

100

93 HELICOPTERS:
94 GLIDERS:
95 MILITARY:
96 ULTRA-LIGHT:

5
0
0
3

OPERATIONS
100 AIR CARRIER:
102 AIR TAXI:
103 G A LOCAL:
104 G A ITNRNT:
105 MILITARY:
TOTAL:

0
300
26,200
22,000
500
49,000

OPERATIONS FOR 12
MONTHS ENDING

- / /
/
/
- / - / /
/

- / /
/
/
- / - / /
/

/
/
/
/
/
/
/
/
/

/
/
/
/
/
/
/
/
/

/
/
/
/

/
/
/
/

(>) ARPT MGR PLEASE ADVISE FSS IN ITEM 86 WHEN CHANGES OCCUR TO ITEMS PRECEDED BY >
> 110 REMARKS:

A 014
A 081

ARPT ADMINISTRATOR.
MIRL RYS 03/21 & 09/27 PRESET LOW INTST DUSK-2200, TO INCR INTST AND ACTVT AFTER 2200 - CTAF. ACTVT PAPI RYS 09 & 27 - CTAF.

111 INSPECTOR:

FAA

Form 5010-1 (5-91)

112 LAST INSP:

11/07/2001

SUPERSEDES PREVIOUS EDITION

113 LAST INFO REQ:

90
8
2

11/07/2001

FAA Terminal Area Forecast: National Forecast 2007 (1) Airport Operations
LOCID: BKV HERNANDO COUNTY
Year

Itn Air Carrier

Itn Air Taxi

Itn GA

Itn Mil

Local GA

Local Mil

Total Airport Ops

2002

300

22,000

500

26,200

49,000

2003

300

21,500

500

25,500

47,800

2004

450

32,770

740

38,269

740

72,969

2005

461

33,843

769

40,304

1,154

76,531

2006

468

34,264

779

40,804

1,168

77,483

2007

474

34,689

500

41,310

750

77,723

2008

480

35,119

500

41,822

750

78,671

2009

486

35,554

500

42,341

750

79,631

2010

492

35,995

500

42,866

750

80,603

2011

498

36,442

500

43,397

750

81,587

2012

504

36,894

500

43,935

750

82,583

2013

510

37,351

500

44,480

750

83,591

2014

516

37,814

500

45,032

750

84,612

2015

523

38,283

500

45,590

750

85,646

2016

529

38,758

500

46,156

750

86,693

2017

536

39,238

500

46,728

750

87,752

2018

543

39,725

500

47,307

750

88,825

2019

549

40,218

500

47,894

750

89,911

2020

556

40,716

500

48,488

750

91,010

2021

563

41,221

500

49,089

750

92,123

2022

570

41,732

500

49,698

750

93,250

2023

577

42,250

500

50,314

750

94,391

2024

584

42,774

500

50,938

750

95,546

2025

591

43,304

500

51,570

750

96,715

Report created 1/21/2008 14:59

FAA Terminal Area Forecast: National Forecast 2007 (1) Based Aircraft
LOCID: BKV HERNANDO COUNTY
Year

Single

Jet

Multi

Helicopter

Other

Total

2002

90

108

2003

90

108

2004

134

12

156

2005

90

108

2006

130

12

156

2007

130

12

156

2008

131

12

157

2009

131

12

159

2010

132

12

160

2011

132

12

161

2012

132

12

161

2013

133

12

163

2014

133

12

164

2015

134

12

165

2016

134

12

10

166

2017

134

12

10

166

2018

135

12

10

169

2019

135

12

10

169

2020

136

12

11

171

2021

136

12

11

172

2022

136

12

11

172

2023

137

12

12

174

2024

137

12

12

176

2025

138

12

13

178

Report created 1/21/2008 15:00

What are the methods?

APPENDIX B
BASE CASE SCENARIO

Source:

Notes:

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

Forecast
Year

468
474
480
486
492
498
504
510
516
523
529
536
543
549
556
563
570
577
584
591

Air Taxi &

Charter

34,264
34,689
35,119
35,554
35,995
36,442
36,894
37,351
37,814
38,283
38,758
39,238
39,725
40,218
40,716
41,221
41,732
42,250
42,774
43,304

GA
Itinerant

FAA 2007 Terminal Area Forecasts, 2007-2025 for BKV

Air
Carrier

779
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500

Military
Itinerant

35,511
35,663
36,099
36,540
36,987
37,440
37,898
38,361
38,830
39,306
39,787
40,274
40,768
41,267
41,772
42,284
42,802
43,327
43,858
44,395

Total
Itinerant

40,804
41,310
41,822
42,341
42,866
43,397
43,935
44,480
45,032
45,590
46,156
46,728
47,307
47,894
48,488
49,089
49,698
50,314
50,938
51,570

GA
Local

TABLE B-1
CY 2007 FAA TERMINAL AREA FORECAST
Air Traffic Control Tower Benefit/Cost Analysis
Hernando County Airport

1,168
750
750
750
750
750
750
750
750
750
750
750
750
750
750
750
750
750
750
750

Military
Local

41,972
42,060
42,572
43,091
43,616
44,147
44,685
45,230
45,782
46,340
46,906
47,478
48,057
48,644
49,238
49,839
50,448
51,064
51,688
52,320

Total
Local

01/21/08

77,483
77,723
78,671
79,631
80,603
81,587
82,583
83,591
84,612
85,646
86,693
87,752
88,825
89,911
91,010
92,123
93,250
94,391
95,546
96,715

Total
Operations

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
2,422,119

136,326
139,553
142,857
146,240
149,707
153,261
156,900
160,626
164,445
168,355
172,360
176,463
180,667
184,974
189,385
540,927

33,393
33,754
34,120
34,490
34,864
35,244
35,628
36,017
36,411
36,809
37,212
37,621
38,034
38,453
38,877
2,235,010

138,726
140,207
141,543
142,926
144,453
145,837
147,269
148,845
150,325
151,900
153,379
155,002
156,576
158,200
159,822

Accident
Efficiency
Benefit (B2) Benefit (B3)

5,198,056

308,445
313,514
318,520
323,656
329,024
334,342
339,797
345,488
351,181
357,064
362,951
369,086
375,277
381,627
388,084

Total
Benefit
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%

1.000
0.935
0.873
0.816
0.763
0.713
0.666
0.623
0.582
0.544
0.508
0.475
0.444
0.415
0.388

Benefit
Discount
Adjustment [1] Factor (@7%)

3,060,624

285,312
271,028
257,342
244,385
232,185
220,503
209,440
199,016
189,061
179,653
170,668
162,199
154,130
146,485
139,218

Present
Value
(NPV)

6,750,000

450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000

ATC
Cost

4,385,461

450,000
420,561
393,047
367,334
343,303
320,844
299,854
280,237
261,904
244,770
228,757
213,792
199,805
186,734
174,518

Present
Value
(NPV)

Notes

A/C Value
3,563,177
1,870,218
1,114,305
432,120
29,138,649

Assumes ATCT Startup CY 2010

A/C Type
AC
AT
GA Itinerant
GA Local
Military

Occupants
0.00
4.11
2.77
2.26
4.01

Calculation Factors
Tower Count 92.5%

Calculation Basis
Establishment Criteria

11,329

Monthly Cost Share:

01/21/08

135,944

450,000
Annual Cost Share:

ATC Cost:

3,060,624
B/C = 0.70
4,385,461
___________________________________________________________________________________________________________________________________

Benefit/Cost Ratio =

Total

Year

Period

Collision
Benefit (B1)

TABLE B-2
BASE CASE SCENARIO
ATCT Benefit Cost Analysis (Establishment)
Hernando County Airport

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
5,313,295

299,040
306,120
313,370
320,793
328,400
336,197
344,182
352,357
360,738
369,317
378,103
387,107
396,331
405,781
415,459
705,717

43,566
44,037
44,514
44,997
45,485
45,981
46,482
46,989
47,503
48,023
48,549
49,082
49,621
50,168
50,720
2,235,010

138,726
140,207
141,543
142,926
144,453
145,837
147,269
148,845
150,325
151,900
153,379
155,002
156,576
158,200
159,822

Accident
Efficiency
Benefit (B2) Benefit (B3)

8,254,022

481,332
490,364
499,427
508,716
518,338
528,015
537,933
548,191
558,566
569,240
580,031
591,191
602,528
614,149
626,001

Total
Benefit
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

1.000
0.935
0.873
0.816
0.763
0.713
0.666
0.623
0.582
0.544
0.508
0.475
0.444
0.415
0.388

Benefit
Discount
Adjustment [1] Factor (@7%)

5,238,439

481,332
458,284
436,219
415,264
395,438
376,467
358,447
341,386
325,090
309,629
294,858
280,871
267,530
254,850
242,774

Present
Value
(NPV)

6,750,000

450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000

ATC
Cost

4,385,461

450,000
420,561
393,047
367,334
343,303
320,844
299,854
280,237
261,904
244,770
228,757
213,792
199,805
186,734
174,518

Present
Value
(NPV)

Notes

A/C Value
3,563,177
1,870,218
1,114,305
432,120
29,138,649

Assumes ATCT Startup CY 2010

A/C Type
AC
AT
GA Itinerant
GA Local
Military

Occupants
0.00
4.11
2.77
2.26
4.01

Calculation Factors
Tower Count 100.0%

Calculation Basis
Discontinuance Criteria

Annual Cost Share:

Monthly Cost Share:

ATC Cost:

01/21/08

450,000

5,238,439
B/C = 1.19
4,385,461
___________________________________________________________________________________________________________________________________

Benefit/Cost Ratio =

Total

Year

Period

Collision
Benefit (B1)

TABLE B-3
BASE CASE SCENARIO
ATCT Benefit Cost Analysis (Discontinuance)
Hernando County Airport

APPENDIX C
ALTERNATE CASE SCENARIO

1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625
1,625

Military
Itinerant [1]

37,040
37,789
38,539
39,289
39,780
40,270
40,761
41,251
41,742
42,265
42,787
43,310
43,832
44,355
44,912
45,469
46,025

Total
Itinerant

BKV Airport Master Plan Update, 2006

34,937
35,679
36,422
37,164
37,647
38,130
38,614
39,097
39,580
40,095
40,610
41,126
41,641
42,156
42,705
43,254
43,804

GA
Itinerant

Source:

478
485
493
500
507
515
522
530
537
544
552
559
567
574
582
589
597

Air Taxi &

Charter

[1] Assumes 6,500 annual miltary operations (split 25% itinerant/75% local)

Air
Carrier

Notes:

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Forecast
Year

40,496
41,353
42,211
43,068
43,629
44,190
44,751
45,312
45,873
46,471
47,068
47,666
48,263
48,861
49,498
50,135
50,771

GA
Local

TABLE C-1
MASTER PLAN FORECAST UPDATE
Air Traffic Control Tower Benefit/Cost Analysis
Hernando County Airport

4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875
4,875

Military
Local [1]

45,371
46,228
47,086
47,943
48,504
49,065
49,626
50,187
50,748
51,346
51,943
52,541
53,138
53,736
54,373
55,010
55,646

Total
Local

01/21/08

82,410
84,018
85,625
87,232
88,284
89,335
90,387
91,438
92,490
93,610
94,730
95,851
96,971
98,091
99,285
100,478
101,672

Total
Operations

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
3,899,666

224,137
228,822
233,554
238,333
243,160
248,354
253,601
258,902
264,257
269,666
275,488
281,371
287,315
293,320
299,386
932,912

58,822
59,284
59,745
60,206
60,668
61,159
61,650
62,142
62,633
63,125
63,648
64,172
64,696
65,219
65,743
3,257,164

206,138
207,715
209,146
210,723
212,155
213,729
215,400
216,927
218,599
220,126
221,892
223,563
225,330
227,001
228,720

Accident
Efficiency
Benefit (B2) Benefit (B3)

8,089,742

489,097
495,821
502,445
509,262
515,983
523,242
530,651
537,971
545,489
552,917
561,028
569,106
577,341
585,540
593,849

Total
Benefit
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%

1.000
0.935
0.873
0.816
0.763
0.713
0.666
0.623
0.582
0.544
0.508
0.475
0.444
0.415
0.388

Benefit
Discount
Adjustment [1] Factor (@7%)

4,778,368

452,415
428,630
405,941
384,531
364,118
345,084
327,076
309,895
293,669
278,194
263,808
250,100
237,120
224,755
213,032

Present
Value
(NPV)

6,750,000

450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000

ATC
Cost

4,385,461

450,000
420,561
393,047
367,334
343,303
320,844
299,854
280,237
261,904
244,770
228,757
213,792
199,805
186,734
174,518

Present
Value
(NPV)

Notes

A/C Value
3,691,316
1,937,475
1,154,378
864,305
30,186,532

Assumes ATCT Startup CY 2010

A/C Type
AC
AT
GA Itinerant
GA Local
Military

Occupants
0.00
4.11
2.77
2.53
4.01

Calculation Factors
Tower Count 92.5%

Calculation Basis
Establishment Criteria

Annual Cost Share:

Monthly Cost Share:

ATC Cost:

01/22/08

450,000

4,778,368
B/C = 1.09
4,385,461
___________________________________________________________________________________________________________________________________

Benefit/Cost Ratio =

Total

Year

Period

Collision
Benefit (B1)

TABLE C-2
ALTERNATE CASE SCENARIO (Master Plan Forecast)
ATCT Benefit Cost Analysis (Establishment)
Hernando County Airport

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
8,541,371

490,872
501,139
511,510
521,985
532,564
543,947
555,448
567,066
578,803
590,658
603,418
616,313
629,342
642,505
655,801
1,217,116

76,742
77,344
77,946
78,548
79,149
79,791
80,432
81,073
81,714
82,355
83,038
83,721
84,404
85,088
85,771
3,257,164

206,138
207,715
209,146
210,723
212,155
213,729
215,400
216,927
218,599
220,126
221,892
223,563
225,330
227,001
228,720

Accident
Efficiency
Benefit (B2) Benefit (B3)

13,015,651

773,752
786,198
798,602
811,256
823,868
837,467
851,280
865,066
879,116
893,139
908,348
923,597
939,076
954,594
970,292

Total
Benefit
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

1.000
0.935
0.873
0.816
0.763
0.713
0.666
0.623
0.582
0.544
0.508
0.475
0.444
0.415
0.388

Benefit
Discount
Adjustment [1] Factor (@7%)

8,287,258

773,752
734,764
697,530
662,227
628,525
597,102
567,244
538,720
511,654
485,808
461,758
438,794
416,961
396,123
376,296

Present
Value
(NPV)

6,750,000

450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000

ATC
Cost

4,385,461

450,000
420,561
393,047
367,334
343,303
320,844
299,854
280,237
261,904
244,770
228,757
213,792
199,805
186,734
174,518

Present
Value
(NPV)

Notes

A/C Value
3,691,316
1,937,475
1,154,378
864,305
30,186,532

Assumes ATCT Startup CY 2010

A/C Type
AC
AT
GA Itinerant
GA Local
Military

Occupants
0.00
4.11
2.77
2.53
4.01

Calculation Factors
Tower Count 100.0%

Calculation Basis
Discontinuance Criteria

Annual Cost Share:

Monthly Cost Share:

ATC Cost:

01/22/08

450,000

8,287,258
B/C = 1.89
4,385,461
___________________________________________________________________________________________________________________________________

Benefit/Cost Ratio =

Total

Year

Period

Collision
Benefit (B1)

TABLE C-3
ALTERNATE CASE SCENARIO (Master Plan Forecast)
ATCT Benefit Cost Analysis (Discontinuance)
Hernando County Airport

APPENDIX D
BREAK EVEN SCENARIO

1,000
1,000
1,000
1,100
1,200
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500

Military
Itinerant [1]

40,212
45,930
45,930
46,030
46,130
46,430
46,430
46,430
46,430
46,430
46,430
46,430
46,430
46,430
46,430
46,430
46,430

Total
Itinerant

Pro-forma Break Even Activity Estimate using 2006 Master Plan Baseline Data

38,800
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500
44,500

GA
Itinerant

Source:

412
430
430
430
430
430
430
430
430
430
430
430
430
430
430
430
430

Air Taxi &

Charter

[1] Assumes 4,000 annual miltary operations (split 25% itinerant/75% local)

Air
Carrier

Notes:

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022

Forecast
Year

35,520
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050
40,050

GA
Local

TABLE D-1
BREAK EVEN ACTIVITY LEVELS
Air Traffic Control Tower Benefit/Cost Analysis
Hernando County Airport

3,000
3,000
3,000
3,200
3,400
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000

Military
Local [1]

38,520
43,050
43,050
43,250
43,450
44,050
44,050
44,050
44,050
44,050
44,050
44,050
44,050
44,050
44,050
44,050
44,050

Total
Local

01/21/08

78,732
88,980
88,980
89,280
89,580
90,480
90,480
90,480
90,480
90,480
90,480
90,480
90,480
90,480
90,480
90,480
90,480

Total
Operations

2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
3,262,860

217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
217,524
801,510

53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
53,434
3,219,360

214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624
214,624

Accident
Efficiency
Benefit (B2) Benefit (B3)

7,283,730

485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582
485,582

Total
Benefit
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%
92.5%

1.000
0.935
0.873
0.816
0.763
0.713
0.666
0.623
0.582
0.544
0.508
0.475
0.444
0.415
0.388

Benefit
Discount
Adjustment [1] Factor (@7%)

4,377,307

449,163
419,779
392,317
366,651
342,665
320,247
299,297
279,716
261,417
244,315
228,332
213,394
199,434
186,387
174,193

Present
Value
(NPV)

6,750,000

450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000
450,000

ATC
Cost

4,385,461

450,000
420,561
393,047
367,334
343,303
320,844
299,854
280,237
261,904
244,770
228,757
213,792
199,805
186,734
174,518

Present
Value
(NPV)

Notes

A/C Value
3,450,202
1,810,921
1,078,975
709,416
28,214,769

Assumes ATCT Startup CY 2010

A/C Type
AC
AT
GA Itinerant
GA Local
Military

Occupants
0.00
4.11
2.77
2.44
4.01

Calculation Factors
Tower Count 92.5%

Calculation Basis
Establishment Criteria

70

Monthly Cost Share:

01/21/08

837

450,000
Annual Cost Share:

ATC Cost:

4,377,307
B/C = 1.00
4,385,461
___________________________________________________________________________________________________________________________________

Benefit/Cost Ratio =

Total

Year

Period

Collision
Benefit (B1)

TABLE D-2
BREAK EVEN SCENARIO
ATCT Benefit Cost Analysis (Establishment)
Hernando County Airport