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HomeMy WebLinkAbout~Master - Renewing the Fixed Base Operator Management Contract with Central Ioiwa Air Service at the Ames Municipal Airport RESOLUTION NO. 22-366 RESOLUTION RENEWING THE FIXED BASE OPERATOR MANAGEMENT CONTRACT WITH CENTRAL IOWA AIR SERVICE AT THE AMES MUNICIPAL AIRPORT FOR THE CITY OF AMES,IOWA WHEREAS, on April 1, 2017, the Ames Municipal Airport changed its Fixed Based Operator(FBO)to Central Iowa Air Service (CIAS); and, WHEREAS, since this was the first time the City had done business with CIAS the contract was limited to five years, expired on June 30, 2022, and over the past five years,CIAS has done an exceptional job operating the airport; and, WHEREAS, there have been numerous positive comments from our local airport users, as well as those visiting Ames, and CIAS has hosted several highly attended community events at the Airport; and, WHEREAS, for the last several months, City staff and CIAS have been negotiating a new long-term FBO Contract to begin July 1,2022,and it is structured with an initial 15-year period(July 1, 2022 to June 30, 2037), with the City's option to extend the Contract for another 15 years under the same terms; and, WHEREAS,the extended lease will allow the FBO to potentially invest in the growth of its business here in Ames; and, WHEREAS, in Section 1 of the Contract it highlights all the services that must be provided by the FBO and the FBO is not authorized to provide any other services at the Ames Municipal Airport under the terms of the Agreement; and, WHEREAS,any proposals to perform additional services or activities,or to delete any of the required services specified in Section 1,must receive written authorization from the City before the commencement of such additional service or activity or deletion of service; and, WHEREAS, while the City is responsible for providing equipment, parts, and fuel for the pieces of equipment used at the Airport; the FBO will operate and perform minor maintenance on the equipment as well as perform mowing,trimming,and snow and ice removal on the City-owned property at the Airport; and, WHEREAS, the FBO is provided several facilities to provide the required services at the Airport, some of which generate revenue to their private business, such as selling fuel, servicing aircraft, or conducting flight training and in return for use of these City-owned facilities, the FBO is also required to pay an annual fee; and, WHEREAS, the Contract provides for two five-year lease rate adjustment periods, one on July 1, 2027, and the other on July 1,2032,which will be adjusted using the Consumer Price Index for All Urban Consumers from September of each 60-month period; and, WHEREAS,the City owns two I0,000-gallon underground fuel storage tanks and fuel must be dispensed to aircrafts via fuel trucks provided by the FBO; therefore, fuel flowage rates will be paid by the FBO to the City on the 15t1i day of each month based on the volume dispensed the previous month. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the renewal of the Fixed Based Operator(FBO) Management Contract with Central Iowa Air Service at the Ames Municipal Airport is hereby approved. ADOPTED THIS 28`' day of June, 2022. �uxa& Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 28t'day of June, 2022.