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HomeMy WebLinkAboutTrillion Aviation-11/4/2013CITY OF WATERLOO Council Communication City Council Meeting: November 4, 2013 Prepared:. November 1, 2013 Dept. Head Signature: Suzy Schares # of Attachments: 4 SUBJECT: Extension of Trillion Aviation Airport Management Agreement Submitted by: Mayor Buck Clark Recommended City Council Action: Resolution approving extension of the Airport Management Agreement with Trillion Aviation for management consulting in an amount not to exceed $79,800.00 per month plus expenses for 6 -months, ending June 30, 2014. Summary Statement Expenditure Required: amount not to exceed $79,800.00 plus expenses Source of Funds Policy Issue Alternative Background Information This extension will allow Trillion to finalize needed business services including updating contracts, conducting a lease inventory, assist in budget development, and update policy and procedures. It will also allow additional time to complete the hiring process and a short period of transition for the airport director position. This contract will also include the air service contract covered by an IDOT grant. trim° AVIATION Trillion Aviation is pleased to offer the City of Waterloo a second 6 -month Scope of Work (SOW) to oversee the Waterloo Regional Airport (ALO). Trillion's current SOW will expire on December 31, 2013. It is recognized that the City of Waterloo is currently in the search process for a new Airport Executive Director. This agreement offers flexible services to the City at scaled down costs for onboarding and job orientation services if a new Director is hired during this time period. The full scope of services described below include $48,000 for 6 months of Operational Services, $24,000 for Business Services, $3,800 for Air Service Development ($19,000 total for services offered with $15,200 covered by an IDOT grant described below), and additional estimated travel costs of $4,000. As such, total contract costs to the City of Waterloo will not exceed $79,800. Operational Services: January -June 2014: Monthly coverage Fee: $8,000 per month January -June. Travel reimbursable at cost. 1. Presence at ALO on Mondays or other days as arranged to meet with ALO staff, City Officials and conduct on site duties involved in the oversight of the airport. 2. On-call services via cell phone and email. 3. Conduct Monday project meetings with consultants, contractors and ALO staff to oversee and offer direction on capital budget activities. 4. Meet monthly with Airport Board and attend City Council meetings when airport business requires Trillion presence. 5. Conduct regular staff and training meetings. 6. Attend other meetings with stakeholders, as required. Optional Operational Services: January -June 2014: Monthly coverage in the advent of the hiring of a new ALO Executive Director. Fee: $4000 per month for 3 months (or more at the City's request). $2000 per month for remainder months with 50% lessened on-site presence at ALO. Travel reimbursable at cost. 1. Presence at ALO an average of one day every other week for orientation and initiation of new Airport Director. 2. On-call services via cell phone and email. 4301 W. William Cannon Dr. • Suite B-150, #293 • Austin, Texas 78749 • www.trillionay.com • 763-234-1725 3. Co -conduct Monday project meetings with consultants, contractors and ALO staff to oversee and offer direction on capital budget activities. 4. Meet monthly with the Airport Board and attend City Council meetings if airport business requires Trillion presence. 5. Co -facilitate regular staff and training meetings. 6. Attend other meetings with stakeholders, speak at community events as invited / required. Business Services: January -June 2014: Activities to be completed prior to June 2014 with schedule reviewed and assigned by Airport Advisory Board and City Staff. Fee: Fixed fee of $24,000. Travel reimbursable at cost. 1. Investigate, recommend and implement when possible non -aeronautical revenue opportunities. 2. Review operations contracts and provide updated language. 3. Develop a lease inventory and synopsis for each. 4. Draft and negotiate new agreements for expired leases. 5. Update and submit for adoption updated Minimum Standards for ALO. 6. Define business terms for FBO agreement and negotiate with tenant. 7. Restructure aspects of parking program and commence implementation. 8. Develop a rate schedule for land rent and farmland. 9. Develop a new organizational chart if requested. 10. Develop 2014-15 budget. Air Service Development (ASD) January -June 2014: Activities to be completed prior to June 2014 with schedule reviewed and assigned by Airport Advisory Board / City Staff. Fee: Fixed fee of $19,000. Fees to be primarily covered by IDOT grant as noted below. Travel reimbursable at cost. (Waterloo Regional Airport received a $28,000 IDOT Air Service Sustainment Grant which will be matched with 20% local funds ($7,000), for a total of $35,000. $19,000 of these monies have been earmarked for ASD. Given the 20% formula the cost to ALO for ASD will be $3,800 and the grant will cover $15,200. These remainder of these grant funds can also be used for professional advertising and / or marketing assistance at the Airport Advisory Board and City's discretion. 1) Network analysis & presentation (conference call & meeting) to SkyWest/United Express. a. Analysis & review of historical ORD demand. b. Review of typical SkyWest stimulation and potential new demand in other regionally served SkyWest markets (BA & DLH, among others). c. Illustrate ability to generate demand regionally, taking traffic from DBQ and particularly CID. 2) Analysis, presentation and meeting with Sun Country Airlines. a. Review regional demand to leisure markets of interest, including Phoenix, Las Vegas, Orlando and also those with charter interest including Reno, Laughlin, NV and Gulfport -Biloxi (markets where casinos have expressed interest in charters). b. If warranted, work with community, Sun Country and aforementioned destination markets to set up selected charter service. This would occur via conference calls (proposal does not include any travel to destination markets noted above). 3) Update Meeting/presentation with Allegiant Airlines. a. Review attributes of the ALO market and how it does not overlap with CID. b. Review airport costs and incentive offers, illustrating how ALO is a much cheaper airport to operate out of than CID. c. Analysis and proposal would be a roughly 20 slide power point presentation. d. Includes ongoing communication with Allegiant Airlines during the course of the year where consultant works as an advocate on behalf of ALO. 4) Critical review, analysis and recommendations for EAS applications, when current EAS service comes up for renewal (April 2014). a. Analysis of current service, including economic analysis and review of more recent trends. b. Review of carrier applications. c. Recommendations, including meeting with Airport Advisory Board and community leaders.