SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Seventh Amendment to the Lease Agreement with Vector Air Management, LLC
Department
DEPARTMENT: Public Works
Presenter
PRESENTER(S): Todd Fessenden, Utilities Director
end
Time
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $21,000 (revenue)
Fund Airport Fund
Line Item Number: 530-00-000-481060-000000
Policy
POLICY ISSUES:
The current lease agreement with Vector Air to operate the airport expires on Dec. 31, 2025. In keeping with the Town Finance Purchasing Policy, we need to have a valid contract with any contractor and therefore would like to amend the existing lease agreement to extend it through June 30, 2026.
Recommendation
STAFF RECOMMENDATION:
Approve the Resolution amending the agreement.
Body
SUMMARY/KEY POINTS
* Current lease expires on Dec. 31, 2025
* This extension will allow continued negotiations
BACKGROUND OF SUBJECT MATTER:
On April 28, 2023, the Town of Erie entered a contract with ABS Aviation Consultancy, Inc dba Airport Business Solutions (ABS) to review the existing management and Fixed Base Operations (FBO) services agreements between the Town and Vector Air. Based on ABS's recommendations, Town staff negotiated a proposed Management Agreement to separate the airport management and FBO into two independent agreements - one for airport management and one for FBO services. Staff is still in negotiations with Vector Air for the FBO Agreement.
Staff engaged Business Aviation Group (BA) and sub-consultant Airside FBO to assist in developing lease rates and property values. Staff also engaged legal counsel Kaplan Kirsch LLP (KK) to work with Town staff and BA to draft an FBO Agreement, as well as provide specialized aviation legal support. Staff sent the draft FBO Agreement to Vector Air on Aug. 23, and in recent discussions, Vector has requested reasonable changes for which staff asked them to ...
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