will perform a costbenefit analysis of continued compliance with CFR Part 139

Will perform a costbenefit analysis of continued

This preview shows page 17 - 19 out of 32 pages.

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 (541) 682-3688 [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 (757) 646-7530 [email protected] Joseph Brown Liberty County Administrator MidCoast Regional Airport at Wright Army Airfield P.O. Box 829 Hinesville, Georgia 31310 (912) 876-2164 [email protected] Mike Willingham Executive Director Sebring Airport Authority 128 Authority Drive Sebring, Florida 33870 (863) 655-6444 [email protected]
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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
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