Will perform a costbenefit analysis of continued

will perform a cost/benefit analysis of continued compliance with CFR Part
139 and meet with City officials regarding our findings and recommendations.
7. REFERENCES
Steve Mokrohisky
County Administrator (Former County Manager with Douglas County, Nevada)
Lane County, Oregon
125 East 8th Avenue
Eugene, Oregon 97401
[phone]
[email protected]
Mr. Jim Nichols
County Manager
Douglas County, Nevada
1594 Esmeralda Avenue
Minden, Nevada 89423
775-782-9821
[email protected]
Mr. Rudy Lupton
Executive Director
North Carolina Global TransPark/Kinston Regional Jetport
P.O. Box 1476
Kinston, North Carolina 28503
[phone]
[email protected]
Joseph Brown
Liberty County Administrator
MidCoast Regional Airport at Wright Army Airfield
P.O. Box 829
Hinesville, Georgia 31310
[phone]
[email protected]
Mike Willingham
Executive Director
Sebring Airport Authority
128 Authority Drive
Sebring, Florida 33870
[phone]
[email protected]

ABS Aviation Proposal for Professional Airport/FBO Management Services
Management & Operation of the Newport Municipal Airport (ONP)
January 6, 2016
17
8. PAYMENT FOR SERVICES
Under our proposed scenario, ABS Aviation proposes a fixed management fee of $37,500 per
month for the first year of the agreement, with annual increases of 3% per annum. This fee would
be inclusive of personnel costs, insurance, and management fees. However, during the first 6
months of the contract, this figure may be adjusted for payroll cost variations of the City’s two
existing full-time employees upon further due diligence and discussion with the City.
It should be noted that the estimated management fee is predicated upon a projected annual
insurance cost of approximately $20,000 for appropriate general commercial liability and
hangarkeepers insurance coverage of $2 million. Actual premiums cannot be derived until the final
scope of services and insurance requirements are determined, and could result in an amendment to
the proposed cost herein.
Although the RFP provides for a 3-year management contract with two 1-year renewal
options, due to the time and expenses associated with start-up, ABS Aviation respectfully requires a
minimum five-year management agreement, terminable only by cause during the base term of the
agreement. (While we would consider a shorter term agreement, we would require a $15,000 start-
up fee in that scenario due to the initial time and costs associated with start-up and transition.)
Upon awarding of the contract, ABS Aviation personnel will meet with representatives of the
City to develop a final staffing and compensation plan to maximize the efficiencies of operating and
maintaining the Airport. In addition to this plan, once we have had the opportunity to assess more
detailed information on historic operations at ONP, an overall budget will be developed that is
amenable to both parties. From that budget, a mutually agreeable incentive fee schedule can be
developed based upon certain benchmarks/milestones relative to revenue enhancement, cost
control, and grant awards (or a combination). This incentive structure will provide the City with
the security that ABS Aviation