COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Robert C. Kane, Airport Manager
SUBJECT:Title
Discussion and Action: Professional Services Agreement for Collection of Lake Havasu City Municipal Airport Landing Fees with Vector Airport Systems, LLC (Robert C. Kane)
Body
FUNDING SOURCE:
Airport Fund
PURPOSE:
To consider approving a Professional Services Agreement with Vector Airport Systems, LLC, for the collection of landing fees at the Lake Havasu City Municipal Airport in accordance with the LHC 2025 Master Fee Schedule.
BACKGROUND:
The Lake Havasu City Municipal Airport has a service fee S-250, Landing Fee - Commercial/Cargo, in the 2025 Master Fee Schedule. Historically, except on rare occasions, the Airport has only collected Landing Fees from two cargo carriers. Vector Aviation Services, LLC, has been collecting landing fees as a service for about 20 years. They started as a billing service and found an opportunity to service airports utilizing the Automatic Dependent Surveillance - Broadcast (ADS-B) system, a technology used in aviation for tracking aircraft operations. The contractor service fees will be paid through the Airport Fund as a percentage of landing fees collected under the terms of the agreement.
Based on modeling of the Airport’s operational traffic last year, it is estimated that under the current 2025 Master Fee Schedule, the Airport Fund would have realized over $21,000 in additional revenue with net revenue of $18,000 after paying the Vector Airport Systems, LLC, collection fees. Airport staff will recommend changes more in line with industry standards during the 2026 Master Fee Schedule revision cycle, and it is estimated that Landing Fee revenue could potentially increase to over $100,000.
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:
Additional revenue in the Airport Fund of approximately $22,000 less collection fees at 19% of approximately $4,000 for a net revenue increase of $18,000. The revenue may increase in future years with changes to the Master Fee Schedule for landing fees.
ATTACHMENTS:
Professional Services Agreement with Vector Airport Systems, LLC
SUGGESTED MOTION:Recommended Action
I move to approve the Professional Services Agreement for collection of landing fees with Vector Airport Systems, LLC.