HomeMy WebLinkAboutIR 7618 # INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7§18
June 23, 1992
To the Mayor and Members of the City Council
X Subject: STATUS OF THE ALLIANCE AIRPORT MANAGEMENT
AGREEMENT
The City Council approved the hiring of Airport Corporation of America to prepare
a Request for Bids (RFB) and a Management Agreement for Alliance Airport.
Listed below are the highlights and schedule for the issuance of the RFB and the
approval of the Agreement.
Proposed Effort
Submission of bids to the City for the performance of all management, operation
and maintenance services,employment of personnel and acquisition of equipment
to fulfill the responsibilities of the RFB.
Scope
The selected bidder will act on behalf of the City and will be responsible for the
management, daily operation and maintenance of the Airport.
Obiectives
■ Award a thirty (30) year agreement for the management, operation and
maintenance of the Airport,
M The selected bidder would pay all management, operating and maintenance
costs and make all capital investments in equipment and vehicles
necessary to fulfill its responsibilities under the Management Agreement.
■ The City would reimburse the selected bidder for these financial
commitments to the extent funds are available from Alliance Airport
revenues.
■ The City will be responsible for and will provide, at its own costs and
expense, Airport Rescue and Firefighting services.
Cost of Service and Capital Investment
Total of three items listed below:
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7618
June 23, 1992
`' To the Mayor and Members of the City Council
e s ots
X Subject: STATUS OF THE ALLIANCE AIRPORT MANAGEMENT
yen AGREEMENT
■ Airport Operating Budget - to include the cost of salaries and benefits
associated with the required personnel, utilities, insurance, and operating
supplies and services, vehicle fuel and oil necessary to provide the Scope
of Work throughout the life of the Management Agreement.
■ Airport Capital Amortization Budget - to include the bid cost and resulting
amortization schedule associated with acquiring the initial equipment
necessary to provide the Scope of Service.
■ Management Fee - the annual management fee payable to the successful
bidder from Airport revenues.
Other Financial Considerations
■ Profit Sharing - the City will receive a minimum of 30% of the profit from
the operation of the Airport.
■ Maximum Risk to the Operator - each bidder will state a total dollar
amount the bidder is willing to commit to subsidize the Airport operation.
■ Reward Amount - the amount of reward (dollars)that the bidder expects in
return for assuming the above maximum risk. The amount is the product
of Maximum Risk multiplied by the Risk Factor which are identified in each
bid.
Example: Maximum Risk $1,500,000
Reward Factor x 2
Reward Amount $3,000,000
■ The Management Agreement may be terminated when either the Maximum
Risk or the Reward Amount is achieved.
Ground Lease
The successful bidder will be given the opportunity to lease up to four (4) tracts
of land on the Airport.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7618
June 23, 1982
Par 3 of
To the Mayor and Members of the City Council s
A Subject: STATUS OF THE ALLIANCE AIRPORT MANAGEMENT
AGREEMENT
Schedule
Listed below are the RFB schedule dates;
July 15, 1992 - Issue RFB
July 28, 1993 - Pre-Bid Conference and Tour of the
Airport
August 21, 1992 - Deadline to Submit Bids
September 1, 1992 - Approval of Agreement
October 1, 1992 - Airport Manager Takes Over
The City Council and the Privatization Committee will be kept informed as the
above listed schedule is followed.
�c-'— Bob Terrell
Acting City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS