HomeMy WebLinkAbout~Master - 2017-22 Airport Fixed Base Operator Contract RESOLUTION NO. 16-611
RESOLUTION APPROVING CONTRACT FOR MUNICIPAL AIRPORT
FIXED BASE OPERATOR MANAGEMENT
FOR THE CITY OF AMES
WHEREAS,on August 23,2016,staffpresented the results of the 2016 Fixed Base Operator
(FBO) selection process, and three FBO companies submitted proposals—Classic Aviation,North
Iowa Air Service, and Exec 1 Aviation; and,
WHEREAS,Classic Aviation was found to have the highest scoring proposal;therefore,City
Council directed staff to begin negotiations with this company for a new five-year agreement to
manage the Airport; and,
WHEREAS, at the same time,the City Council gave approval to negotiate with North Iowa
Air Service(Charles City Aeronautics, Inc., d/b/a Central Iowa Air Service) if an agreement could
not be successfully negotiated with Classic Aviation; and,
WHEREAS, since the August meeting, Classic Aviation has officially withdrawn from the
selection process,citing personal issues that would prevent fulfilling the terms ofthe agreement;and,
WHEREAS,as a result of this notification,staff transitioned to negotiating with North Iowa
Air Service and has reached an agreement to operate the Airport beginning April 1, 2017, through
June 30, 2022; a start date of April 1, 2017, will allow North Iowa sufficient time to hire staff and
purchase equipment necessary to meet the requirements of the agreement; and,
WHEREAS, it is noteworthy that North Iowa Air Service will be able to perform the same
services that were proposed by Classic Aviation that made them the top scoring FBO, such as
coordinating with ISU to establish a Part 141 Flight School and providing turbine charter services;
and,
WHEREAS,staffbelieves North Iowa Air Service can ensure the same high level of services
that the City anticipated receiving from Classic Aviation; and,
WHEREAS, something unique to North Iowa Air Service's proposal is that it is willing, at
no cost to the City,to perform all the labor necessary for the winter and summer maintenance at the
Airport,provided that the City supplies the equipment and fuel for these activities; and,
WHEREAS,the City's Fleet Services staff generated a costibenefit analysis of this proposal,
which includes Fleet Services acquiring the equipment in the current FY2016/17 budget and
programming ongoing costs for capital amortization,maintenance,fuel,and depreciation within the
Airport's annual operating budget; and,
WHEREAS, the agreement includes provisions for North Iowa to pay an annual fee to the
City for the operational privilege of using the Airport facilities for its business; and,
WHEREAS,this will be paid one-fourth quarterly in advance to the City with the total annual
payments as follows: FY 2017/18 = $50,000; FY 2018/19 = $60,000; FY 2019/20 = $61,800; FY
2020/21 = $63,600; FY 2021/22 = $65,600; and,
WHEREAS, additionally, the fee paid for April 1 to June 30, 2017,will be $12,500, and it
should be noted that in addition to the fixed fee paid to the City, the FBO will be paying a fuel
flowage fee of$0.08/gallon for both Jet A and 100LL fuel;this represents an increase in fees to the
benefit of the City; and,
WHEREAS,it should be noted that North Iowa Air Service is actually a business name used
by the parent corporation, Charles City Aeronautics, Inc.; and,
WHEREAS, in providing FBO service to the City of Ames, Charles City Aeronautics,Inc.,
will be doing business as Central Iowa Air Service.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Fixed Base Operator Agreement with Charles City Aeronautics,Inc.,d/b/a Central Iowa Air
Service, to manage the Ames Municipal Airport from April 1, 2017, through June 30, 2022, is
hereby approved.
ADOPTED THIS 11 th day of October, 2016.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this I Ith day of October, 2016.