SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Fifth Amendment to the Lease Agreement with Vector Air Management, LLC
Body
DEPARTMENT: Public Works Department
Department
PRESENTER(S): Todd Fessenden, Utilities Director
First Name Last Name, Title
FISCAL SUMMARY:
Cost as Recommended: $10,500 (revenue)
Budget Line Item Number: 530-00-000-481060-000000
POLICY ISSUES:
The current lease agreement with Vector Air to operate the airport expires on March 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 2025.
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution amending the agreement.
End
SUMMARY AND 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 provide additional support documentation. Staff believe such changes warrant additional discussion with Council which will take place in the first part of ...
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