HomeMy WebLinkAboutTrillion Aviation - Extension of Agreement-12/16/2013Scaly -14c(
CITY OF WATERLOO
Council Communication
City Council Meeting: December 16, 2013
Prepared: December 12, 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 plus expenses, 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. The contract for business services and operational services
can be terminated when services are no longer needed.
trillion
AVIATION
STATEMENT OF WORK
This Statement of Work No. 9 between Trillion Av, LLC ("Trillion Aviation") and City of
Waterloo ("ALO") is governed by the Master Services Agreement ("MSA") in effect
between the parties and, upon execution of this Statement of Work by both parties, is
incorporated therein pursuant to MSA Section "Services". All terms and conditions of the
MSA shall apply to this Statement of Work unless clearly stated to the contrary herein.
Trillion will assist ALO with the management of certain airport functions as an interim
assignment until such time as a permanent airport manager is hired and in place. In
addition, Air Service Development tasks are outlined and included below, and
discretionary business services are offered on an ad hoc basis. These services are
offered for the January 1, 2014 - June 30, 2014 timeframe.
Airport Management Focus Areas (without permanent airport director)
1. Finance- Maintain financial self-sufficiency through prudent management of
expenses and maximizing non -airline revenue. Maintain reports and research all
variances of substance. Recommend corrective actions, obtain approval, and
implement.
2. Compliance- Maintain compliance with all FAA, TSA, local, and state rules and
regulations and requirements. This is done through regular interaction and
through meetings as required when on site.
3. Project Management- Conduct weekly project meetings on Monday when on site
and facilitate the management of projects. Provide direction to engineers and
review all payment requests. Research all issues and provide direction for
resolution.
4. Customer Service and Public relations- Serve as the primary contact for all
customer service and public information requests. Respond to inquiries and
advise public officials as appropriate.
5. Administration- Provide direction for staff as requested. Keep an ALO phone
number and cell phone for public and staff communications. Administer and
negotiate all professional services contracts as requested.
6. Permanent Manager — Assist Waterloo officials in their seeking and assessing
qualified candidates for the permanent airport manager position.
7. Work Plan —
a. Attend Monday morning staff meetings weekly
b. Schedule a one-on-one meeting with Mayor and other City officials, as
necessary, while there on Monday
c. Conduct a staff meeting at Airport with Maintenance personnel once a
month
d. Conduct project meetings on Mondays
Trillion Aviation / ALO Page 11/26/2013
e. Meet with Airport Board chair (based on requests of chair) on Mondays
f. Attend City Council meetings with airport related agenda items
g. Attend Airport Board meetings
h. Assist the City in budget preparation for the fiscal year of 2014
i. Attend other meetings with stakeholders, as required.
Air Service Development (ASD) Focus Areas
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 (BJI & 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.
Management and ASD Fees
Monthly Fee: $10,000 per month, January -June, for a total of $60,000. Factoring in
$28,000 IDOT Air Service Sustainment Grant, the net cost to the City of Waterloo could
be $32,000, (or about $5,333 per month). All travel expenses will be reimbursed
separately at cost without markup. Fees and expenses are paid Net 30.
(Waterloo Regional Airport received a $28, 000 IDOT Air Service Sustainment Grant
which would be matched with 20% local funds ($7,000), for a total of $35, 000).
Trillion Aviation / ALO Page 2 11/26/2013
Airport Management Focus Areas (with permanent airport director)
1. Presence at ALO an average of one day every other week for orientation and
initiation of new Airport Director, and a lessor amount as airport director is fully
engaged.
2. On-call services via cell phone and email.
3. Co -conduct Monday project meetings when present 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
director 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.
Management and ASD Fees Adjustment
The monthly fee of $10,000 for airport management and ASD services during the
January 2014 — June 2014 period will be reduced by $3,000 to a total of $7,000 per
month beginning after the first full month after the airport director is onsite at ALO (i.e.,
director starts January 20th, after first full month is March). After an airport director is
onsite and Airport Management Focus Area services are no longer needed (reasonable
notice to be provided, and at the city's discretion) the monthly fee would be reduced by
$4,000 to a total of $3,000 for ASD Focus Area only. All travel expenses will be
reimbursed separately at cost without markup. Fees and expenses are paid Net 30.
Optional Ad Hoc Business Services:
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, Waterloo Air Service or other leases
as needed 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.
Business Services Fees
Fees will be billed at the hourly rate of $185/hr. All travel expenses will be reimbursed
separately at cost without markup. Fees and expenses are paid Net 30.
Trillion Aviation / ALO Page 3 11/26/2013
The parties hereto accepted and approved this Statement of Work as of the latest date
written below and this Statement of Work may be executed in any number of
counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same instrument. Any signature delivered by facsimile shall be
treated for all purposes as an original.
TRILLION AV, LLC
By:
Name: Daniel Benzon
Title: President
Date: January 1, 2014
City of ,. terloo
By:
Name: Ernest G. Clark
Title: Mayor — City of Waterloo
Date: January 1, 2014
Trillion Aviation / ALO Page 4 11/26/2013