COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Robert C. Kane, Airport Manager
SUBJECT:Title
Discussion and Action: Professional Services Agreement to Conduct an Audit of the Lake Havasu City Municipal Airport Fixed Based Operator Leases with Aeroplex Group Partners, LLC, dba Ascension Group Partners, LLC (Robert C. Kane)
Body
FUNDING SOURCE:
Airport Fund
PURPOSE:
To consider approval of a Professional Services Agreement (500710) with Aeroplex Group Partners, LLC, dba Ascension Group Partners, LLC, to conduct an audit of the Lake Havasu City Municipal (LHC) Airport Fixed Base Operator (FBO) Leases.
BACKGROUND:
LHC Municipal Airport has three (3) FBOs and four (4) FBO leases covering their development sites, services, requirements and responsibilities. These have not had a comprehensive audit in several years. Numerous addendums and other operational, financial, and legal changes have occurred at the Airport over time that affect the operating environment. Decision-making for future Airport development, proposed facility and resource sales and/or lease reassignment, lease terminations and minimum standards are all impacted by accurate and common understanding of the current status and compliance with the terms of the leases.
COMMUNITY IMPACT:
The Lake Havasu City Municipal Airport is a vital economic and transportation hub in our community. It plays a significant role in the local economy as well as bringing in many work-related visitors (military and civilian training).
FISCAL IMPACT:
Decisions on future Airport development, proposed facility and resource sales and/or reassignment/transfers and lease terminations planning will all have significant financial implications for the self-sustainability of the LHC Municipal Airport. These audits should assist in developing courses of action that meet the needs of Airport stakeholders and better comply with Federal Aviation Administration (FAA) Grant Assurances.
ATTACHMENTS:
Exhibit A - Scope of Work
Exhibit B - Fee Schedule
SUGGESTED MOTION:Recommended Action
I move to approve the Professional Services Agreement to conduct an audit of the Lake Havasu City Municipal Airport Fixed Based Operator (FBO) Leases with Aeroplex Group Partners, LLC, dba Ascension Group Partners, LLC, in an amount not to exceed $26,000.