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Agenda 06/27/2023 Item #16G 1 (Contract #22-8051 for Airport Management Consulting Services w/Crawford, Murphy & Tilly, Inc.)
16.G.1 06/27/2023 EXECUTIVE SUMMARY Recommendation to award Request for Proposal ("RFP") No. 22-8051, "Airport Management Consulting Services," to Crawford, Murphy & Tilly, Inc., and authorize the Chairman to sign the attached agreement. OBJECTIVE: To obtain airport management consulting services to be used by the Collier County Airport Authority to provide analysis, services, and support to the airport management team. CONSIDERATIONS: RFP No. 22-8051 sought consultants willing to provide airport management consulting services to the Airport Authority as needed for analysis and services on projects, planning or operational support of the airports. These services will be utilized on an as needed basis and include the following: 1. Support for the development of financial and business -related reports, analyses and forecasts. 2. Provide advice and support related to bidding and negotiating airport concession (car rental/food/beverage/retail) and hangar lease agreements. 3. Provide support for the FAA and FDOT grant program. 4. Support for mandatory operational programs and policies. 5. Provide services to evaluate operating and financial performance within industry standards. On September 23, 2022, the Procurement Services Division released notices of RFP No. 22-8051 for "Airport Management Consulting Services", a single responsive and responsible proposal was received by the December 12, 2022, deadline, from Crawford, Murphy & Tilly, Inc. The solicitation due date was extended twice for a total of twenty-four (24) days to allow staff to conduct vendor outreach in an effort to stimulate and increase competition. A selection committee met on January 23, 2023, and after scoring the proposal and deliberation, the committee requested the proposing firm provide an oral presentation from the proposing firm. On February 13, 2023, the selection committee reconvened for the presentation and established a final ranking. Crawford, Murphy & Tilly, Inc. ("Crawford") has worked in airports around the nation for over 75 years and has specific experience in the general aviation industry, servicing over 130 General Aviation airports. Crawford has a local presence in LaBelle, Florida, and has been registered to do business in Florida since 2010. The proposed hourly rates are fair and competitive in the current market and comparable to other firms in the general professional services for airports. Accordingly, staff recommends that the Board award the proposed agreement to the sole proposer, Crawford, Murphy & Tilly, Inc. FISCAL IMPACT: Funds are available in Airport Authority Funds (4090) and (4091). GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board award RFP No. 22-8051, "Airport Management Consulting Services," to Crawford, Murphy & Tilly, Inc., and authorize the Chairman to sign the attached agreement. Prepared by: Andrew Bennett, Executive Manager, Airport Authority ATTACHMENT(S) 1.22-8051 Contract Crawford, Murphy & Tilly_VendorSigned (PDF) Packet Pg. 1382 16.G.1 06/27/2023 2.22-81051 COI_Crawford, Murphy & Tilly (PDF) 3.22-8051 NORA (PDF) 4. [Linked] 22-8051 - Proposal Crawford, Murphy and Tilly (PDF) 5.22-8051 Solicitation R1 (PDF) 6.22-8051 Final Ranking (PDF) Packet Pg. 1383 16.G.1 06/27/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.G.1 Doe ID: 25531 Item Summary: Recommendation to award Request for Proposal ("RFP") No. 22-8051, "Airport Management Consulting Services," to Crawford, Murphy & Tilly, Inc., and authorize the Chairman to sign the attached agreement. Meeting Date: 06/27/2023 Prepared by: Title: — Transportation Management Operations Support Name: Heather Meyer 05/10/2023 2:51 PM Submitted by: Title: Division Director - Operations Support — Growth Management and Community Development Department Name: Gene Shue 05/10/2023 2:51 PM Approved By: Review: Airport Authority Andrew Bennett Additional Reviewer Growth Management and Community Development Department Gene Shue Growth Management and Community Development Department Jeanne Marcella Procurement Services Ana Reynoso Community & Human Services Lisa Oien Public Transit & Neighborhood Enhancement Transportation Management Operations Support Department Level 1 Purchasing Gatekeeper Additional Reviewer Darren Hutton Tara Castillo Procurement Services Sue Zimmerman Additional Reviewer Procurement Services Sandra Herrera Procurement Director Review Transportation Management Services Department Trinity Scott County Attorney's Office Scott Teach Level 2 Attorney Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Community & Human Services Maggie Lopez Additional Reviewer County Manager's Office Geoffrey Willig Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 05/10/2023 4:14 PM Additional Reviewer Completed 05/11/2023 10:49 AM Transportation Management Services Completed 05/11/2023 3:06 PM Completed 05/11/2023 4:15 PM Completed 05/12/2023 1:33 PM Additional Reviewer Completed 05/18/2023 5:20 PM Additional Reviewer Completed 05/18/2023 5:26 PM Completed 05/30/2023 11:17 AM Completed 05/30/2023 11:46 AM Transportation Completed 06/01/2023 8:22 AM Completed 06/05/2023 10:15 AM Completed 06/05/2023 10:30 AM Completed 06/05/2023 10:36 AM Completed 06/13/2023 1:05 PM Completed 06/20/2023 10:08 AM 06/27/2023 9:00 AM Packet Pg. 1384 16.G.1.a PROFESSIONAL SERVICES AGREEMENT (FIXED TERM CONTINUING CONTRACT) NON-CCNA Contract # 22-8051 for Airport Management Consulting Services it THIS AGREEMENT is made and entered into this day of , 2023 by and between the Board of County Commissioners for Collier County, Florida, a political subdivision of the State of Florida (hereinafter referred to as the "COUNTY") and CRAWFORD, MURPHY & TILLY, INC., a Delaware corporation authorized to do business in the State of Florida, whose business address is 2750 West Washington Street, Springfield, IL 62702 (hereinafter referred to as the "CONSULTANT" and/or "CONTRACTOR"). WITNESSETH: WHEREAS, the COUNTY desires to obtain the CONSULTANT's services expeditiously a when a need arises in connection with a Collier County project, and M LO LO NOW, THEREFORE, in consideration of the mutual covenants and provisions contained herein, the parties hereto agree as follows: c ARTICLE ONE `L_ CONSULTANT'S RESPONSIBILITY a� 1.1. From time to time upon the written request or direction of the COUNTY as hereinafter provided, CONSULTANT shall provide to the COUNTY professional services (hereinafter the "Services") as herein set forth. The term "Services" includes all Additional Services authorized by «s written Amendment or Change Order as hereafter provided. t 1.2. CONSULTANT acknowledges and agrees that services under this Agreement are to be requested by the COUNTY on an as -needed basis only, and COUNTY makes no representation or guarantee to CONSULANT that the COUNTY will utilize CCONSUTLANT'S services exclusively or at all. 1.3. All Services to be performed by the CONSULTANT pursuant to this Agreement shall be in conformance with the scope of services, which shall be described in a Work Order issued pursuant to the procedures described herein. The form of the Work Order is set forth in attached Schedule A. Reference to the term "Work Order" herein, with respect to authorization of Services, includes all written Amendments or Change Orders to any particular Work Order. Page 1 of 30 PSA (A'an-CCNA) Fixed Term Continuing Contract 2023 Ver. I CA0 Packet Pg. 1385 16.G.1.a 1.4. All Services must be authorized in writing by the COUNTY in the form of a Work Order. The CONSULTANT shall not provide any Services to the COUNTY unless and to the extent they are required in a written Work Order. Any Services provided by CONSULTANT without a written Work Order shall be at CONSULTANT's own risk and the COUNTY shall have no liability for such Services. 1.5. As the COUNTY identifies certain Services it wishes CONSULTANT to provide pursuant to the terms of this Agreement, the COUNTY shall request a proposal from CONSULTANT for such Services, said proposal to be in compliance with the terms of this Agreement. If the parties reach an agreement with respect to such Services, including, but not limited to the scope, compensation and schedule for performance of those Services, a Work Order shall be prepared which incorporates the terms of the understanding reached by the parties with respect to such Services; and if both parties are in agreement therewith, they shall jointly execute the Work Order. Upon execution of a Work Order as aforesaid, CONSULTANT agrees to promptly provide the Services required thereby, in accordance with the terms of this Agreement and the subject Work Order. 1.6. It is mutually understood and agreed that the nature, amount and frequency of the Services shall be determined solely by the COUNTY and that the COUNTY does not represent or guarantee to CONSULTANT that any specific amount of Services will be requested or required of CONSULTANT pursuant to this Agreement. 1.7. The CONSULTANT shall have no authority to act as the agent of the COUNTY under this `` Agreement or any Work Order, or to obligate the COUNTY in any manner or way. M LO M 1.8. All duly executed Work Orders (including all written Amendments or Change Orders thereto) are hereby incorporated into and made a part of this Agreement by reference. 1.9. The CONSULTANT agrees to obtain and maintain throughout the period of this Agreement o all such licenses as are required to do business in the State of Florida and in Collier County, r- Florida, including, but not limited to, all licenses required by the respective state boards and other > governmental agencies responsible for regulating and licensing the professional services to be provided and performed by the CONSULTANT pursuant to this Agreement. 1.10. The CONSULTANT agrees that, when the services to be provided hereunder relate to a professional service which, under Florida Statutes, requires a license, certificate of authorization or other form of legal entitlement to practice such services, it shall employ and/or retain only qualified personnel to provide such services to the COUNTY. 1.11. The CONSULTANT designates Laura Sakach, PE a qualified licensed professional to serve as the CONSULTANT's project coordinator (hereinafter referred to as the "Project Coordinator"). The Project Coordinator is authorized and responsible to act on behalf of the CONSULTANT with respect to directing, coordinating and administering all aspects of the services to be provided and performed under this Agreement. In each Work Order CONSULTANT will designate a qualified licensed professional to serve as CONSULTANT's project coordinator for the Services to be provided under that Work Order (hereinafter referred to as the "Project Coordinator"). The Project Coordinator is authorized and responsible to act on behalf of the CONSULTANT with respect to directing, coordinating and administering all aspects of the Services to be provided and performed under the Work Order. Further, the Project Page 2 of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 VCr. I Packet Pg. 1386 16.G.1.a Coordinator has full authority to bind and obligate the CONSULTANT on all matters arising out of or relating to the Work Order. The CONSULTANT agrees that the Principal in Charge and the Project Coordinators shall devote whatever time is required to satisfactorily manage the services to be provided and performed by the CONSULTANT under the Work Order. CONSULTANT further agrees that the Principal in Charge and Project Coordinators shall not be removed by CONSULTANT without the COUNTY's prior written approval, and if so removed must be immediately replaced with a person acceptable to the COUNTY. 1.12. The CONSULTANT agrees, within fourteen (14) calendar days of receipt of a written request from the COUNTY to promptly remove and replace the Project Coordinator, or any other personnel employed or retained by the CONSULTANT, or any subconsultants or subcontractors or any personnel of any such subconsultants or subcontractors engaged by the CONSULTANT to provide and perform services or work pursuant to the requirements of this Agreement, or any applicable Work Order, said request may be made with or without cause. Any personnel so removed must be immediately replaced with a person acceptable to the COUNTY. 1.13. The CONSULTANT represents to the COUNTY that it has expertise in the type of professional services that will be performed pursuant to this Agreement and has extensive N experience with projects similar to the Project required hereunder. The CONSULTANT agrees a that all services to be provided by CONSULTANT pursuant to this Agreement shall be subject to W the COUNTY's review and approval and shall be in accordance with the generally accepted a standards of professional practice in the State of Florida, as well as in accordance with all a applicable laws, statutes, including but not limited to ordinances, codes, rules, regulations and requirements of any governmental agencies, and the Florida Building Code where applicable, which regulate or have jurisdiction over the Services to be provided and performed by N CONSULTANT hereunder, the Local Government Prompt Payment Act (218.735 and 218.76 F.S.), as amended, and the Florida Public Records Law Chapter 119, including specifically those contractual requirements at F.S. § 119.0701(2)(a)-(b) as stated as follows: cn L O IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE > PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: P Communications, Government and Public Affairs Division 3299 Tamiami Trail East, Suite 102 Naples, FL 34112-5746 Telephone: (239) 252-8999 Email: PublicRecordsRequest(aD-colliercountyfl.gov The Contractor must specifically comply with the Florida Public Records Law to: 1. Keep and maintain public records required by the public agency to perform the service. 2. Upon request from the public agency's custodian of public records, provide the public agency with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law. Page 3 of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver.1 r, Packet Pg. 1387 16.G.1.a 3. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if the Contractor does not transfer the records to the public agency. 4. Upon completion of the contract, transfer, at no cost, to the public agency all public records in possession of the Contractor or keep and maintain public records required by the public agency to perform the service. If the Contractor transfers all public records to the public agency upon completion of the contract, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Contractor keeps and maintains public records upon completion of the contract, the Contractor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the public agency, upon request from the public agency's custodian of public records, in a format that is compatible with the information technology systems of the public agency. If Contractor observes that the Contract Documents are at variance therewith, it shall promptly notify the COUNTY in writing. Failure by the Contractor to comply with the laws referenced herein shall constitute a breach of this Agreement and the COUNTY shall have the discretion to unilaterally terminate this Agreement immediately. 1.14. In the event of any conflicts in these requirements, the CONSULTANT shall notify the a COUNTY of such conflict and utilize its best professional judgment to advise the COUNTY regarding resolution of each such conflict. The COUNTY's approval of the design documents in M no way relieves CONSULTANT of its obligation to deliver complete and accurate documents N necessary for successful construction of the Project. a� c 1.15. The COUNTY reserves the right to deduct portions of the (monthly) invoiced (task) amount LM for the following: Tasks not completed within the expressed time frame, including required o deliverables, incomplete and/or deficient documents, failure to comply with local, state and/or federal requirements and/or codes and ordinances applicable to CONSULTANT's performance >i of the work as related to the project. This list is not deemed to be all-inclusive, and the COUNTY reserves the right to make sole determination regarding deductions. After notification of r= deficiency, if the CONSULTANT fails to correct the deficiency within the specified timeframe, these funds would be forfeited by the CONSULTANT. The COUNTY may also deduct or charge a the CONSULTANT for services and/or items necessary to correct the deficiencies directly related to the CONSULTANT's non-performance whether or not the COUNTY obtained substitute performance. A 1.16. The CONSULTANT agrees not to divulge, furnish or make available to any third person, firm or organization, without the COUNTY's prior written consent, or unless incident to the proper performance of the CONSULTANT's obligations hereunder, or in the course of judicial or legislative proceedings where such information has been properly subpoenaed, any non-public information concerning the services to be rendered by CONSULTANT hereunder, and CONSULTANT shall require all of its employees, agents, subconsultants and subcontractors to comply with the provisions of this paragraph. CONSULTANT shall provide the COUNTY prompt written notice of any such subpoenas. Page A of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver. ] Packet Pg. 1388 16.G.1.a 1.17. As directed by the COUNTY, all plans and drawings referencing a specific geographic area must be submitted in an AutoCAD DWG or MicroStation DGN format on a CD or DVD, drawn in the Florida State Plane East (US Feet) Coordinate System (NAD 83/90). The drawings should either reference specific established Survey Monumentation, such as Certified Section Corners (Half or Quarter Sections are also acceptable), or when implemented, derived from the RTK (Real - Time Kinematic) GPS Network as provided by the COUNTY. Information layers shall have common naming conventions (i.e. right-of-way - ROW, centerlines - CL, edge -of -pavement - EOP, etc.), and adhere to industry standard CAD specifications. ARTICLE TWO ADDITIONAL SERVICES OF CONSULTANT 2.1. If authorized in writing by the COUNTY through an Amendment or Change Order to a Work e- Order, CONSULTANT shall furnish or obtain from others Additional Services beyond those a Services originally authorized in the Work Order. The agreed upon scope, compensation and a schedule for Additional Services shall be set forth in the Amendment or Change Order authorizing LO those Additional Services. With respect to the individuals with authority to authorize Additional Services under this Agreement, such authority will be as established in the COUNTY's N Procurement Ordinance and Procedures in effect at the time such services are authorized. a Except in an emergency endangering life or property, any Additional Services must be approved W in writing via an Amendment or Change Order to the subject Work Order prior to starting such services. The COUNTY will not be responsible for the costs of Additional Services commenced a without such express prior written approval. Failure to obtain such prior written approval for Additional Services will be deemed: (i) a waiver of any claim by CONSULTANT for such Additional M Services and (ii) an admission by CONSULTANT that such Work is not additional but rather a part N of the Services originally required of CONSULTANT under the subject Work Order. a� c 2.2. If the COUNTY determines that a change in a Work Order is required because of the action LM Cn taken by CONSULTANT in response to an emergency, an Amendment or Change Order shall be o issued to document the consequences of the changes or variations, provided that CONSULTANT has delivered written notice to the COUNTY of the emergency within forty-eight (48) hours from >I when CONSULTANT knew or should have known of its occurrence. Failure to provide the forty- eight (48) hour written notice noted above, waives CONSULTANT's right it otherwise may have had to seek an adjustment to its compensation or time of performance under the subject Work Order. ARTICLE THREE THE COUNTY'S RESPONSIBILITIES 3.1. The COUNTY shall designate in writing a project manager to act as the COUNTY's representative with respect to the services to be rendered under this Agreement (hereinafter referred to as the "Project Manager"). The Project Manager shall have authority to transmit instructions, receive information, interpret and define the COUNTY's policies and decisions with respect to CONSULTANT's services for the Project. However, the Project Manager is not authorized to issue any verbal or written orders or instructions to the CONSULTANT that would have the effect, or be interpreted to have the effect, of modifying or changing in any way whatever: a. The scope of services to be provided and performed by the CONSULTANT as set forth in the Work Order; Page 5 of 30 PS (Non-CCNA) Fixed Term Continuing Contract 2023 Ver.! Packet Pg. 1389 16.G.1.a b. The time the CONSULTANT is obligated to commence and complete all such services as set forth in the Work Order; or c. The amount of compensation the COUNTY is obligated or committed to pay the CONSULTANT as set forth in the Work Order. 3.2. The Project Manager shall: a. Review and make appropriate recommendations on all requests submitted by the CONSULTANT for payment for services and work provided and performed in accordance with this Agreement; b. Provide all criteria and information requested by CONSULTANT as to the COUNTY's requirements for the Services specified in the Work Order, including design objectives and constraints, space, capacity and performance requirements, flexibility and expandability, and any budgetary limitations; c. Upon request from CONSULTANT, assist CONSULTANT by placing at CONSULTANT's disposal all available information in the COUNTY's possession pertinent to the Services specified in the Work Order, including existing drawings, specifications, shop drawings, product literature, previous reports and any other data relative to the subject Work Order; d. Arrange for access to and make all provisions for CONSULTANT to enter the site (if any) set forth in the Work Order to perform the Services to be provided by CONSULTANT under the subject Work Order; and e. Provide notice to CONSULTANT of any deficiencies or defects discovered by the COUNTY with respect to the Services to be rendered by CONSULTANT hereunder. ARTICLE FOUR TIME 4.1. Each Work Order will have a time schedule ("Schedule") for the performance of the Services required under the subject Work Order. Said Schedule shall be in a form and content satisfactory to the COUNTY. Services to be rendered by CONSULTANT shall be commenced, performed and completed in accordance with the Work Order and the Schedule. Time is of the essence with respect to the performance of the Services under each Work Order. 4.2. Should CONSULTANT be obstructed or delayed in the prosecution or completion of the Services as a result of unforeseeable causes beyond the control of CONSULTANT, and not due to its own fault or neglect, including but not restricted to acts of nature or of public enemy, acts of government or of the COUNTY, fires, floods, epidemics, quarantine regulations, strikes or lock -outs, then CONSULTANT shall notify the COUNTY in writing within five (5) working days after commencement of such delay, stating the specific cause or causes thereof, or be deemed to have waived any right which CONSULTANT may have had to request a time extension for that specific delay. 4.3. Unless otherwise expressly provided in the Work Order, no interruption, interference, inefficiency, suspension or delay in the commencement or progress of CONSULTANT's Services from any cause whatsoever, including those for which COUNTY may be responsible in whole or Page G of 30 P5A (Non-CCNA) fixed Term Continuing Contract 2023 Ver.I M LO L0 N a� c 2 Cl) 0 as Packet Pg. 1390 16.G.1.a in part, shall relieve CONSULTANT of its duty to perform or give rise to any right to damages or additional compensation from the COUNTY. CONSULTANT's sole remedy against the COUNTY will be the right to seek an extension of time to the Schedule; provided, however, the granting of any such time extension shall not be a condition precedent to the aforementioned "No Damage For Delay" provision. This paragraph shall expressly apply to claims for early completion, as well as claims based on late completion. 4.4. Should the CONSULTANT fail to commence, provide, perform or complete any of the Services to be provided hereunder in a timely manner, in addition to any other rights or remedies available to the COUNTY hereunder, the COUNTY at its sole discretion and option may withhold any and all payments due and owing to the CONSULTANT under this Agreement (including any and all Work Orders) until such time as the CONSULTANT resumes performance of its obligations hereunder in such a manner so as to reasonably establish to the COUNTY's satisfaction that the CONSULTANT's performance is or will shortly be back on schedule. 4.5. In no event shall any approval by the COUNTY authorizing CONSULTANT to continue performing Work under any particular Work Order or any payment issued by the COUNTY to CONSULTANT be deemed a waiver of any right or claim the COUNTY may have against CONSULTANT for delay or any other damages hereunder. 4.6. The period of service shall be from the date of execution of this Agreement through three ( 3 } year(s) from that date, or until such time as all outstanding Work Orders issued a prior to the expiration of the Agreement period have been completed. The COUNTY may, at its discretion and with the consent of the CONSULTANT, renew the Agreement under all of the terms M and conditions contained in this Agreement for two ( 2 ) additional one ( 1 ) N year(s) periods. The COUNTY shall give the CONSULTANT written notice of the COUNTY's intention to renew the Agreement term prior to the end of the Agreement term then in effect. 4.7. The County Manager, or his designee, may, at his discretion, extend the Agreement under o all of the terms and conditions contained in this Agreement for up to one hundred and eighty (180) days. The County Manager, or his designee, shall give the CONSULTANT written notice of the > COUNTY's intention to extend the Agreement term prior to the end of the Agreement term then in effect. ARTICLE FIVE COMPENSATION 5.1. Compensation and the manner of payment of such compensation by the COUNTY for Services rendered hereunder by CONSULTANT shall be as prescribed in each Work Order. The Project Manager, or designee, reserves the right to request proposals from this agreement utilizing any of the following Price Methodologies: Lump Sum (Fixed Price): A firm fixed total price offering for a project; the risks are transferred from the COUNTY to the CONSULTANT; and, as a business practice there are no hourly or material invoices presented, rather, the CONSULTANT must perform to the satisfaction of the COUNTY's Project Manager before payment for the fixed price contract is authorized. Time and Materials: The COUNTY agrees to pay the contractor for the amount of labor time spent by the CONSULTANT's employees and subcontractors to perform the work (number Page 7 of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 her. 1 r' Packet Pg. 1391 16.G.1.a of hours times hourly rate), and for materials and equipment used in the project (cost of materials plus the contractor's mark-up). This methodology is generally used in projects in which it is not possible to accurately estimate the size of the project, or when it is expected that the project requirements would most likely change. As a general business practice, these contracts include back-up documentation of costs; invoices would include number of hours worked and billing rate by position (and not company (or subcontractor) timekeeping or payroll records), material or equipment invoices, and other reimbursable documentation for the project. 5.2. The hourly rates as set forth and identified in Schedule B, Attachment 1, Rate Schedule, which is attached hereto, shall apply only to projects procured under the Time and Materials pricing methodology specified in paragraph 5.1 above. ARTICLE SIX OWNERSHIP OF DOCUMENTS 6.1. Upon the completion or termination of each Work Order, as directed by the COUNTY, CONSULTANT shall deliver to the COUNTY copies or originals of all records, documents, N drawings, notes, tracings, plans, MicroStation or AutoCAD files, specifications, maps, evaluations, U_ reports and other technical data, other than working papers, prepared or developed by or for CONSULTANT under the applicable Work Order ("Project Documents"). The COUNTY shall specify whether the originals or copies of such Project Documents are to be delivered by a CONSULTANT. The CONSULTANT shall be solely responsible for all costs associated with delivering to the COUNTY the Project Documents. The CONSULTANT, at its own expense, may LO retain copies of the Project Documents for its files and internal use. 6.2. Notwithstanding anything in this Agreement to the contrary and without requiring the COUNTY to pay any additional compensation, CONSULTANT hereby grants to the COUNTY a nonexclusive, irrevocable license in all of the Project Documents for the COUNTY's use with o respect to the applicable authorized project or task. The CONSULTANT warrants to the COUNTY that it has full right and authority to grant this license to the COUNTY. Further, CONSULTANT >i consents to the COUNTY's use of the Project Documents to complete the subject project or task following CONSULTANT's termination for any reason or to perform additions to or remodeling, replacement or renovations of the subject project or task. The CONSULTANT also acknowledges, the COUNTY may be making Project Documents available for review and information to various a third parties and hereby consents to such use by the COUNTY. ARTICLE SEVEN MAINTENANCE OF RECORDS 7.1. The CONSULTANT will keep adequate records and supporting documentation which concern or reflect its services hereunder. The records and documentation will be retained by CONSULTANT for a minimum of five (5) years from (a) the date of termination this Agreement or (b) the date of the Work Order is completed, whichever is later, or such later date as may be required by law. The COUNTY, or any duly authorized agents or representatives of the COUNTY, shall, free of charge, have the right to audit, inspect and copy all such records and documentation as often as they deem necessary during the period of this Agreement and during the five (5) year Page S of 30 PSA (Non-CCNA) Fixed Term Coulinuing Contract 2023 Ver 1 c-NO Packet Pg. 1392 16.G.1.a period noted above, or such later date as may be required by law; provided, however, such activity shall be conducted only during normal business hours. ARTICLE EIGHT INDEMNIFICATION 8.1. To the maximum extent permitted by Florida law, CONSULTANT shall defend, indemnify and hold harmless the COUNTY, its officers and employees from any and all liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and paralegals' fees, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of CONSULTANT or anyone employed or utilized by the CONSULTANT in the performance of this Agreement. This indemnification obligation shall not be construed to negate, abridge or reduce any other rights or remedies which otherwise may be available to an indemnified party or person described in this paragraph. This section does not pertain to any incident arising from the sole negligence of Collier County 8.1.1. The duty to defend under this Article 8 is independent and separate from the duty to indemnify, and the duty to defend exists regardless of any ultimate liability of the CONSULTANT, the COUNTY and any indemnified party. The duty to defend arises immediately upon presentation of a claim by any party and written notice of such claim being provided to CONSULTANT. The CONSULTANT's obligation to indemnify and defend under this Article 8 will survive the expiration or earlier termination of this Agreement until it is determined by final judgment that an action against the COUNTY or an indemnified party for the matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 8.1.2. To the extent that the Agreement that the work pertains to is a "Professional Services Contract" as defined in Section 725.08(3), Florida Statues, and the CONSULTANT is a "Design Professional" as defined in Section 725.08(4), Florida Statues, the indemnification provided herein shall be limited as provided in Section 725.08(1) & (2), Florida Statues. ARTICLE NINE INSURANCE 9.1. The CONSULTANT shall obtain and carry, at all times during its performance under the Contract Documents, insurance of the types and in the amounts set forth in SCHEDULE C to this Agreement. 9.2. All insurance shall be from responsible companies duly authorized to do business in the State of Florida. 9.3. All insurance policies required by this Agreement shall include the following provisions and conditions by endorsement to the policies: 9.3.1. All insurance policies, other than the Business Automobile policy, Professional Liability policy, and the Workers Compensation policy, provided by CONSULTANT to meet the requirements of this Agreement shall name Collier County Board of County Commissioners, OR, Board of County Commissioners in Collier County, OR, Collier County Government, as an Page 9 of 30 PSA (Icon-CCNA) Fixed Term Continuing Contract 2023 Ver.l M W) N a� c 2 Cn 0 a� 21 P CAQ Packet Pg. 1393 16.G.1.a additional insured as to the operations of CONSULTANT under this Agreement and shall contain a severability of interests' provisions. 9.3.2. Companies issuing the insurance policy or policies shall have no recourse against the COUNTY for payment of premiums or assessments for any deductibles which all are at the sole responsibility and risk of CONSULTANT. 9.3.3. All insurance coverages of CONSULTANT shall be primary to any insurance or self- insurance program carried by the COUNTY, and the "Other Insurance" provisions of any policies obtained by CONSULTANT shall not apply to any insurance or self-insurance program carried by COUNTY. 9.3.4. The Certificates of Insurance, which are to be provided in an Occurrence Form patterned after the current I.S.O. form with no limiting endorsements, must reference and identify this Agreement. 9.3.5. All insurance policies shall be fully performable in Collier County, Florida, and shall be construed in accordance with the laws of the State of Florida. 9.4. The CONSULTANT, its subconsultants and the COUNTY shall waive all rights againstLL- U- each other for damages covered by insurance to the extent insurance proceeds are paid and received by the COUNTY, except such rights as they may have to the proceeds of such insurance 3 held by any of them. a 9.5. All insurance companies from whom CONSULTANT obtains the insurance policies LO required hereunder must meet the following minimum requirements: 9.5.1. The insurance company must be duly licensed and authorized by the Department of Insurance of the State of Florida to transact the appropriate insurance business in the State of Florida. o 9.5.2. The insurance company must have a current A. M. Best financial rating of "Class > VI" or higher. ARTICLE TEN i= SERVICES BY CONSULTANT'S OWN STAFF 10.1. The services to be performed hereunder shall be performed by CONS ULTANT's own staff, unless otherwise authorized in writing by the COUNTY. The employment of, contract with, or use of the services of any other person or firm by CONSULTANT, as independent consultant or otherwise, shall be subject to the prior written approval of the COUNTY. No provision of this Agreement shall, however, be construed as constituting an agreement between the COUNTY and any such other person or firm. Nor shall anything in this Agreement be deemed to give any such party or any third party any claim or right of action against the COUNTY beyond such as may then otherwise exist without regard to this Agreement. 10.2. Attached to each Work Order shall be a Schedule that lists all of the key personnel CONSULTANT intends to assign to perform the Services required under that Work Order. Such personnel shall be committed to the project or task specified in the Work in accordance with the percentages noted in the attached schedule. CONSULTANT shall also identify in that Schedule each subconsultant and subcontractor it intends to utilize with respect to the subject Work Order. Page 10 of 30 PSA (Non•CCNA) Fixed Term Continuing Contract 2023 Ver.l r Packet Pg. 1394 16.G.1.a All personnel, subconsultants and subcontractors identified in the Schedule shall not be removed or replaced without the COUNTY's prior written consent. 10.3. The CONSULTANT is liable for all the acts or omissions of its subconsultants or subcontractors. By appropriate written agreement, the CONSULTANT shall require each subconsultant or subcontractor, to the extent of the Services to be performed by the subconsultant or subcontractor, to be bound to the CONSULTANT by the terms of this Agreement and any subsequently issued Work Order, and to assume toward the CONSULTANT all the obligations and responsibilities which the CONSULTANT, by this Agreement and any subsequently issued Work Order, assumes toward the COUNTY. Each subconsultant or subcontract agreement shall preserve and protect the rights of the COUNTY under this Agreement, and any subsequently issued Work Order, with respect to the Services to be performed by the subconsultant or subcontractor so that the subconsulting or subcontracting thereof will not prejudice such rights. Where appropriate, the CONSULTANT shall require each subconsultant or subcontractor to enter into similar agreements with its sub-subconsultants or sub -subcontractors. 10.4. The CONSULTANT acknowledges and agrees that the COUNTY is a third -party beneficiary of each contract entered into between CONSULTANT and each subconsultant or subcontractor, however nothing in this Agreement shall be construed to create any contractual relationship between the COUNTY and any subconsultant or subcontractor. Further, all such contracts shall provide that, at the COUNTY's discretion, they are assignable to the COUNTY upon any termination of this Agreement. ARTICLE ELEVEN M WAIVER OF CLAIMS N 11.1. The CONSULTANT's acceptance of final payment for Services provided under any Work Order shall constitute a full waiver of any and all claims, except for insurance company subrogation claims, by it against the COUNTY arising out of the Work Order or otherwise related o to those Services, and except those previously made in writing in accordance with the terms of this Agreement and identified by CONSULTANT in its final invoice for the subject Work Order as > unsettled. Neither the acceptance of CONSULTANT's Services nor payment by the COUNTY shall be deemed to be a waiver of any of COUNTY's rights against CONSULTANT. ARTICLE TWELVE TERMINATION OR SUSPENSION 12.1. This Agreement is a fixed term contract for the professional services of CONSULTANT. It is agreed that either party hereto shall at any and all times have the right and option to terminate this Agreement by giving to the other party not less than thirty (30) days prior written notice of such termination. Upon this Agreement being so terminated by either party hereto, neither party hereto shall have any further rights or obligations under this Agreement subsequent to the date of termination, except that Services specified to be performed under a previously issued Work Order, shall proceed to completion under the terms of this Agreement. 12.2. The CONSULTANT shall be considered in material default of this Agreement and such default will be considered cause for the COUNTY to terminate this Agreement and any Work Orders in effect, in whole or in part, as further set forth in this section, for any of the following reasons: (a) CONSULTANT's failure to begin Services under any particular Work Order within Page 11 of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver. I Packet Pg. 1395 16.G.1.a the times specified under that Work Order, or (b) CONSULTANT's failure to properly and timely perform the Services to be provided hereunder or as directed by the COUNTY, or (c) the bankruptcy or insolvency or a general assignment for the benefit of creditors by CONSULTANT or by any of CONSULTANT's principals, officers or directors, or (d) CONSULTANT's failure to obey any laws, ordinances, regulations or other codes of conduct, or (e) CONSULTANT's failure to perform or abide by the terms and conditions of this Agreement and any Work Orders in effect, or (f) for any other just cause. The COUNTY may so terminate this Agreement and any Work Orders in effect, in whole or in part, by giving the CONSULTANT seven (7) calendar days written notice of the material default. 12.3. If, after notice of termination of this Agreement as provided for in paragraph 12.1 above, it is determined for any reason that CONSULTANT was not in default, or that its default was excusable, or that the COUNTY otherwise was not entitled to the remedy against CONSULTANT provided for in paragraph 12.2, then the notice of termination given pursuant to paragraph 12.2 shall be deemed to be the notice of termination provided for in paragraph 12.4, below, and CONSULTANT's remedies against the COUNTY shall be the same as and be limited to those afforded CONSULTANT under paragraph 12.4 below. 12.4. Notwithstanding anything herein to the contrary (including the provisions of paragraph 12.1 a. above), the COUNTY shall have the right to terminate this Agreement and any Work Orders in W effect, in whole or in part, without cause upon seven (7) calendar days written notice to CONSULTANT. In the event of such termination for convenience, CONSULTANT's recovery a against the COUNTY shall be limited to that portion of the fee earned through the date of termination, for any Work Orders so cancelled, together with any retainage withheld and any costs reasonably incurred by CONSULTANT that are directly attributable to the termination, but N CONSULTANT shall not be entitled to any other or further recovery against the COUNTY, including, but not limited to, anticipated fees or profits on Services not required to be performed. CONSULTANT must mitigate all such costs to the greatest extent reasonably possible. L O 12.5. Upon termination and as directed by the COUNTY, the CONSULTANT shall deliver to the COUNTY all original papers, records, documents, drawings, models, and other material set forth >� and described in this Agreement, including those described in Article 6, that are in CONSULTANT's possession or under its control arising out of or relating to this Agreement or any Work Orders. 06 12.6. The COUNTY shall have the power to suspend all or any portions of the Services to be provided by CONSULTANT hereunder upon giving CONSULTANT two (2) calendar days prior written notice of such suspension. If all or any portion of the Services to be rendered hereunder are so suspended, the CONSULTANT's sole and exclusive remedy shall be to seek an extension of time to its schedule in accordance with the procedures set forth in Article Four herein. 12.7. In the event (i) the COUNTY fails to make any undisputed payment to CONSULTANT within forty-five (45) days after such payment is due as set forth in the Work Order or such other time as required by Florida's Prompt Payment Act or (ii) the COUNTY otherwise persistently fails to fulfill some material obligation owed by the COUNTY to CONSULTANT under this Agreement or subsequently issued Work Order, and (ii) the COUNTY has failed to cure such default within fourteen (14) days of receiving written notice of same from CONSULTANT, then CONSULTANT may stop its performance under the subject Work Order until such default is cured, after giving the COUNTY a second fourteen (14) days written notice of CONSULTANT's intention to stop Page 12 of 30 r r PSA (Non-CCFIA) Fixed Term Continuing Contract 2023 Ver.l Q Packet Pg. 1396 16.G.1.a performance under the applicable Work Order. If the Services are so stopped for a period of one hundred and twenty (120) consecutive days through no act or fault of the CONSULTANT or its subconsultant or subcontractor or their agents or employees or any other persons performing portions of the Services under contract with the CONSULTANT, the CONSULTANT may terminate the subject Work Order by giving written notice to the COUNTY of CONSULTANT's intent to terminate that Work Order. If the COUNTY does not cure its default within fourteen (14) days after receipt of CONSULTANT's written notice, CONSULTANT may, upon fourteen (14) additional days' written notice to the COUNTY, terminate the subject Work Order and recover from the COUNTY payment for Services performed through the termination date, but in no event shall CONSULTANT be entitled to payment for Services not performed or any other damages from the COUNTY. ARTICLE THIRTEEN TRUTH IN NEGOTIATION REPRESENTATIONS 13.1. The CONSULTANT warrants that CONSULTANT has not employed or retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement and that CONSULTANT has not paid or agreed to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, gift or any other consideration contingent upon or resulting from the award or making of this Agreement or any subsequent Work Order. ARTICLE FOURTEEN M CONFLICT OF INTEREST N 14.1. CONSULTANT represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance of services required hereunder. CONSULTANT further represents that no persons having any such interest o shall be employed to perform those services. a� ARTICLE FIFTEEN MODIFICATION 15.1. No modification or change in this Agreement shall be valid or binding upon either party unless in writing and executed by the party or parties intended to be bound by it. 15.2. In the event that the need for changes to the Services under a Work Order may arise during the course of the work, the associated tasks may be modified at the request of the Project Manager or his designee. Written authorization from the Project Manager will be required in accordance with the Procurement Ordinance, as amended, and Procedures. For any changes that exceed an existing Work Order amount, the Work Order shall be modified to reflect the increase prior to any related Services being performed. 15.3. All duly executed modifications to Work Orders (including all written modifications or Changes thereto) are hereby incorporated into and made a part of this Agreement by reference. Page 13 of 30 PSA (Nan-CCNA) Fixed Term Continuing Contract 2023 Ver.I clAo Packet Pg. 1397 16.G.1.a ARTICLE SIXTEEN NOTICES AND ADDRESS OF RECORD 16.1. All notices required or made pursuant to this Agreement to be given by the CONSULTANT to the COUNTY shall be in writing and shall be delivered by hand, email, or by United States Postal Service Department, first class mail service, postage prepaid, addressed to the following the COUNTY's address of record: Board of County Commissioners for Collier County, Florida Division Name: Operations Support Division (Airport Authority) Division Director: Gene Shue Address: 2885 Horseshoe Drive S Naples, FL 34104 Administrative Agent/PM: Andrew Bennett Executive Airport Manager Telephone: (239_)_252-8425 E-Mail(s): Andrew. Bennett(cD_ColIierCountyFL.Gov 16.2. All notices required or made pursuant to this Agreement to be given by the COUNTY to a the CONSULTANT shall be made in writing and shall be delivered by hand, email or by the United States Postal Service Department, first class mail service, postage prepaid, addressed to the M following CONSULTANT's address of record: N Company Name: CRAWFORD, MURPHY & TILLY, INC. Address: 2750 West Washington Street Springfield, IL 62702 0 0 Authorized Agent: Bradley Hamilton, Sr. VP - Director Aviation Services >i Attention Name & Title: David Graham Long, AAE, Airport Advocate Telephone: (217) 572-10401 (863) 885-3020 E-Mail(s): Bhamilton(c-ocmtengr.c_o_m dlongp,cmtengr.com 16.3. Either party may change its address of record by written notice to the other party given in accordance with requirements of this Article. ARTICLE SEVENTEEN MISCELLANEOUS 17.1. The CONSULTANT, in representing the COUNTY, shall promote the best interests of the COUNTY and assume towards the COUNTY a duty of the highest trust, confidence, and fair dealing. 17.2. No modification, waiver, suspension or termination of the Agreement or of any terms thereof shall impair the rights or liabilities of either party. Page 14 of 30 PSA (Non-CCNIA) Fixed Term Continuing Contract 2023 Ver.l ff) Packet Pg. 1398 16.G.1.a 17.3. This Agreement is not assignable, or otherwise transferable in whole or in part, by CONSULTANT without the prior written consent of the COUNTY. 17.4. Waivers by either party of a breach of any provision of this Agreement shall not be deemed to be a waiver of any other breach and shall not be construed to be a modification of the terms of this Agreement. 17.5. The headings of the Articles, Schedules, Parts and Attachments as contained in this Agreement are for the purpose of convenience only and shall not be deemed to expand, limit or change the provisions in such Articles, Schedules, Parts and Attachments. 17.6. This Agreement, including the referenced Schedules and Attachments hereto, constitutes the entire agreement between the parties hereto and shall supersede, replace and nullify any and all prior agreements or understandings, written or oral, relating to the matter set forth herein, and any such prior agreements or understanding shall have no force or effect whatever on this Agreement. 17.7. Unless otherwise expressly noted herein, all representations and covenants of the parties shall survive the expiration or termination of this Agreement. 17.8. This Agreement may be simultaneously executed in several counterparts, each of which a shall be an original and all of which shall constitute but one and the same instrument. M 17.9. The terms and conditions of the following Schedules attached hereto are by this reference N incorporated herein. a� c Schedule A WORK ORDER Schedule B RATE SCHEDULE o Schedule C INSURANCE Solicitation # 22-8451 , including all Attachment(s), Exhibit(s) and > Addendum/Consultant's Proposal i= 17.10. Applicability. Sections corresponding to any checked box {■) expressly apply to the terms of this Agreement. ARTICLE EIGHTEEN APPLICABLE LAW 18.1. This Agreement shall be governed by the laws, rules, and regulations of the State of Florida, and by such laws, rules and regulations of the United States as made applicable to services funded by the United States government. Any suit or action brought by either party to this Agreement against the other party relating to or arising out of this Agreement must be brought in the appropriate federal or state courts in Collier County, Florida, which courts have sole and exclusive jurisdiction on all such matters. Page 15 of 30 }'SA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver,I v Packet Pg. 1399 16.G.1.a ARTICLE NINETEEN SECURING AGREEMENT/PUBLIC ENTITY CRIMES 19.1. By its execution of this Agreement, CONSULTANT acknowledges that it has been informed by the COUNTY of and is in compliance with the terms of Section 287.133(2)(a) of the Florida Statutes which read as follows: "A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid, proposal, or reply on a contract to provide any goods or services to a public entity; may not submit a bid, proposal, or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit bids, proposals, or replies on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity; and may not transact business with any public entity in excess of the threshold amount provided in s. 287.017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list." ARTICLE TWENTY DISPUTE RESOLUTION 20.1. Prior to the initiation of any action or proceeding permitted by this Agreement to resolve W) disputes between the parties, the parties shall make a good faith effort to resolve any such disputes by negotiation. The negotiation shall be attended by representatives of CONSULTANT with full decision -making authority and by the COUNTY's staff person who would make the presentation of any settlement reached during negotiations to the COUNTY for approval. Failing T resolution, and prior to the commencement of depositions in any litigation between the parties -°a arising out of this Agreement, the parties shall attempt to resolve the dispute through Mediation before an agreed -upon Circuit Court Mediator certified by the State of Florida. The mediation shall be attended by representatives of CONSULTANT with full decision -making authority and by the COUNTY's staff person who would make the presentation of any settlement reached at mediation to the COUNTY's board for approval. Should either party fail to submit to mediation as required hereunder, the other party may obtain a court order requiring mediation under section 44.102, Fla. Stat. 20.2. Any suit or action brought by either party to this Agreement against the other party relating to or arising out of this Agreement must be brought in the appropriate federal or state courts in Collier County, Florida, which courts have sole and exclusive jurisdiction on all such matters. Wage 16 of 30 PSA (Nun-CCNA) Fixed Term Continuing Contract 2023 Ver.I '7. AQ Packet Pg. 1400 16.G.1.a ARTICLE TWENTY-ONE IMMIGRATION LAW COMPLIANCE 21.1. By executing and entering into this agreement, the CONSULTANT is formally acknowledging without exception or stipulation that it is fully responsible for complying with the provisions of the Immigration Reform and Control Act of 1986 as located at 8 U.S.C. 1324, et seq. and regulations relating thereto, as either may be amended. Failure by the CONSULTANT to comply with the laws referenced herein shall constitute a breach of this agreement and the COUNTY shall have the discretion to unilaterally terminate this Agreement immediately. (signature page to follow) M LO LO N d C 2 Cn L O L1 r Page 17 of 30 r r PSA (Nan-CCNA) Fixed Term Continlcing Contract 2023 VmI Q Packet Pg. 1401 16.G.1.a IN WITNESS WHEREOF, the parties hereto have executed this Professional Services Agreement the day and year first written above. ATTEST: Crystal K. Kinzel, Clerk of Court & Comptroller By: Date: Approved as to Form and Legality: County Attorney Name Consultant's Witnesses: Witness L.ctur� Sak<cc�i 'Jr. Name and Title BOARD OF COUNTY COMMISSIONERS FOR COLLIER COUNTY, FLORIDA, By: Rick LoCastro , Chairman Cl) LO LO N Consultant: m c aM / i) CRA O MURP TIY INC. `o By: r r f ' -'� c / 1 �(l ,� rat i �( �.(. �� I c•i7..V � �,p . [f P, t= Name and Title Ors Page 18 of 30 PSA (hose-CCNA} Fixed Term ConUnuiuµ Contract 2023 Vet 4 C Packet Pg. 1402 16.G.1.a SCHEDULE A WORK ORDER Contract 00-0000 "Name of Contract" Contract Expiration Date: , 20 This Work Order is for professional (describe) services for work known as: Project Name: Project No: The work is specified in the proposal dated 20 which is attached hereto and made a part of this Work Order. In accordance with Terms and Conditions of the Agreement referenced above, this Work Order is assigned to: Name of Firm Scope of Work: As detailed in the attached proposal and the following: * Task I - * Task II * Task III Schedule of Work: Complete work within days firm the date of the Notice to Proceed which is accompanying this Work Order. The Consultant agrees that any Work Order that extends beyond the expiration date of Agreement tl 00-0000 will survive and remain subject to the terms and conditions of that Agreement until the completion or termination of this Work Order. Compensation: In accordance with the Agreement referenced above, the County will compensate the Firm in accordance with following mctltod(s): ❑Negotiated Lump Sum (NLS) ❑Lump Sum Plus Reimbursable Costs (LS+RC) ❑Time & Material (T&M) (established hourly rate -- Schedule A) ❑Cost Plus Fixed Fee (CPFF), (define which method will be used for which tasks) as provided in the attached proposal. Task I Task Il to Task III N TOTAL FEE PREPARED BY: Name and Title Date APPROVED BY: (Dept Narne) , Division Director Date APPROVED BY: type name, Department Head Date By the signature below, the Firm (including employees, officers and/or agents) certifies, and hereby discloses, that, to the best of their knowledge and belief, all relevant facts concerning past, present, or currently planned interest or activity (financial, contractual, organizational, or otherwise) which relates to the proposed work; and bear on whether the Firm has a potential conflict have been ful ly disclosed. Additionally, the Firm agrees to notify the Procurement Director, in writing within 48 hours of learning of any actual or potential conflict of interest that arises during the Work Order and/or project duration. ACCEPTED BY: (Firin Name) Name & Title of Authorized Officer Date Page 19 of 30 PSA (Non-CCNA) Fixed Terni Continuing Contract 2023 Ver.l CAO Packet Pg. 1403 16.G.1.a SCHEDULE B BASIS OF COMPENSTATION 1. SERVICES 8.1.1. As the COUNTY identifies certain Services it wishes CONSULTANT to provide pursuant to the terms of this Agreement, the COUNTY shall request a proposal from CONSULTANT for such Services, said proposal to be in compliance with the terms of this Agreement. If the parties reach an agreement with respect to such Services, including, but not limited to the scope, compensation and schedule for performance of those Services, a Work Order shall be issued which incorporates the terms of the understanding reached by the parties with respect to such Services. B.1.1.1. The COUNTY may request that CONSULTANT in writing advise the COUNTY of (i) the estimated time of CONSULTANT's personnel and the estimated fees thereof for the proposed work to be specified in the Work Order; and (ii) the estimated charge to the COUNTY for the reimbursable expenses applicable to the contemplated Services to be performed by CONSULTANT under the proposed Work Order. CONSULTANT shall promptly supply such estimate to the COUNTY based on CONSULTANT's good faith analysis. B.1.2. All Services to be performed by CONSULTANT pursuant to this Agreement shall be in conformance with the scope of services, which shall be described in a Work Order issued pursuant a to the procedures described herein. Reference to the term Work Order herein, with respect to authorization of Services, includes all written Work Order Modifications or Amendments. LO LO N B.1.3. All Services must be authorized in writing by the COUNTY in the form of a Work Order. CONSULTANT shall not provide any Services to the COUNTY unless and to the extent they are required in a written Work Order. Any Services provided by CONSULTANT without a written Work Order shall be at CONSULTANT's own risk and the COUNTY shall have no liability for such 0 Services. B.1.4. Upon issuance of a Work Order as aforesaid, CONSULTANT agrees to promptly provide _>; the Services required thereby, in accordance with the terms of this Agreement and the subject P Work Order. 2. COMPENSATION TO CONSULTANT B.2.1. Payments for Basic Services and Additional Basic Services as set forth herein or the Work Order shall be made upon presentation of the CONSULTANT's invoice approved by the COUNTY. B.2.2. Payments will be made for services furnished, delivered, and accepted, upon receipt and approval of invoices submitted on the date of services or within six (6) months after completion of contract. Any untimely submission of invoices beyond the specified deadline period is subject to non-payment under the legal doctrine of 1aches" as untimely submitted. Time shall be deemed of the essence with respect to the timely submission of invoices under this Agreement. Page 20 of 30 PSA (Non-CC'NA) Fixed Tenn Continuing Contract 2023 Ver.l rNo Packet Pg. 1404 16.G.1.a B.2.3. For the Services provided for in this Agreement, the COUNTY agrees to make payments to CONSULTANT based upon CONSULTANT's Direct Labor Costs and Reimbursable Expenses or as a Lump Sum. B.2.4. ❑■ Time and Material Fees: Direct Labor Costs mean the actual salaries and wages (basic, premium and incentive) paid to CONSULTANT's personnel, with respect to this Agreement, including all indirect payroll related costs and fringe benefits, all in accordance with and not in excess of the rates set forth in the Attachment 1 to this Schedule B. With each monthly Application for Payment, CONSULTANT shall submit detailed time records, and any other documentation reasonably required by the COUNTY, regarding CONSULTANT's Direct Labor Costs incurred at the time of billing, to be reviewed and approved by the COUNTY. There shall be no overtime pay without the COUNTY's prior written approval. B.2.4.1. For Additional Services provided pursuant to Article 2 of the Agreement, if any, the COUNTY agrees to pay CONSULTANT a negotiated total fee and Reimbursable Expenses based on the services to be provided and as set forth in the Amendment authorizing such Additional Services. The negotiated fee shall be based upon the rates specified in Attachment 1 to this Schedule B and all Reimbursable Expenses shall comply with the provision of Section B.3.4.1 below. There shall be no overtime pay on Additional Services without the COUNTY's prior written approval. B.2.4.2. Notwithstanding anything herein to the contrary, in no event may CONSULTANT's monthly billings, on a cumulative basis, exceed the sum determined by multiplying the applicable a not to exceed task(s) limits by the percentage the COUNTY has determined CONSULTANT has completed such task as of that particular monthly billing. LO N B.2.5. FM Lump Sum Fees: The fees noted in the Work Order shall constitute the lump sum amount to be paid to CONSULTANT for the performance of the Services. CONSULTANT shall c submit to the COUNTY as part of its monthly invoice a progress report reflecting the status, in terms of the total work effort estimated to be required for the completion of the Services authorized -0 under the Work Order and any then -authorized Additional Services, as of the last day of the subject monthly billing cycle. Among other things, the report shall show all Service items and the >i percentage complete of each item. There shall be no overtime pay without the COUNTY's prior written approval. B.2.6. For Additional Services provided pursuant to Article 2 of the Agreement, the COUNTY agrees to pay CONSULTANT a negotiated total fee and Reimbursable Expenses based on the services to be provided and as set forth in the Amendment authorizing such Additional Services. The negotiated fee shall be based upon the rates specified in Attachment 1 to this Schedule B and all Reimbursable Expenses shall comply with the provisions of Section 3 below. There shall be no overtime pay on Services or Additional Services without COUNTY's prior written approval. B.2.7. Unless specific rates have been established in Attachment 1, attached to this Schedule B, CONSULTANT agrees that, with respect to any subconsultant or subcontractor to be utilized by CONSULTANT for a particular Work Order or Additional Services, CONSULTANT shall be limited to a maximum markup of five percent (5%) on the fees and expenses associated with such subconsultants and subcontractors. B.2.8. The CONSULTANT agrees to furnish to the COUNTY, after the end of each calendar month, or as specified in the Work Order, statement of charges for the Services performed and Page 21 of 30 PSA (Non-CCNA) Fiscd Term Continuing ControCt 2023 Ver.1 " Packet Pg. 1405 16.G.1.a rendered by CONSULTANT during that time period, and for any the COUNTY authorized reimbursable expenses as herein below defined, incurred and/or paid by CONSULTANT during that time period. The monthly statement shall be in such form and supported by such documentation as may be required by the COUNTY. Notwithstanding anything herein to the contrary, the CONSULTANT shall submit no more than one (1) invoice per month for both Basic Services and Additional Services. Invoices shall be reasonably substantiated, identify the services rendered and must be submitted in a form and manner required by the COUNTY. B.2.9. Invoices not properly prepared (mathematical errors, billing not reflecting actual work done, no signature, etc.) shall be returned to CONSULTANT for correction. Invoices shall be submitted on CONSULTANT's letterhead and must include the Purchase Order Number and Project name and shall not be submitted more than one time monthly. B.2.10. Notwithstanding anything in the Agreement to the contrary, CONSULTANT acknowledges and agrees that in the event of a dispute concerning payments for Services performed under this Agreement, CONSULTANT shall continue to perform the Services required of it under this Agreement, as directed by the COUNTY, pending resolution of the dispute provided that the COUNTY continues to pay to CONSULTANT all amounts that the COUNTY does not dispute are due and payable. 3. REIMBURSABLE EXPENSES B.3.1. Payments for Additional Services of CONSULTANT as defined in Section 2 hereinabove a and for reimbursable expenses will be made monthly upon presentation of a detailed invoice with supporting documentation. M rn LO B.3.2, The CONSULTANT shall obtain the prior written approval of the COUNTY before incurring any reimbursable expenses, and absent such prior approval, no expenses incurred by CONSULTANT will be deemed to be a reimbursable expense. Cn L B.3.3. The COUNTY agrees to reimburse CONSULTANT for all necessary and reasonable reimbursable expenses incurred or paid by CONSULTANT in connection with CONSULTANT's performance of the Services, at its direct cost with no markup; to the extent such reimbursement is permitted in the Work Order and in accordance with Section 112.061, F.S., or as set forth in this Agreement. Reimbursable expenses shall be invoiced for the expenditures incurred by the CONSULTANT as stated below. 5.3.3.1. Cost for reproducing documents that exceed the number of documents described in this Agreement and postage and handling of Drawings and Specifications including duplicate sets at the completion of each Work Order for the COUNTY's review and approval. 5.3.3.2. Travel expenses reasonably and necessarily incurred with respect to Project related trips, to the extent such trips are approved by the COUNTY. Such expenses, if approved by the COUNTY, may include coach airfare, standard accommodations and meals, all in accordance with Section 112.061, F.S. Further, such expenses, if approved by the COUNTY, may include mileage for trips that are from/to destinations outside of Collier or Lee Counties. Such trips within Collier and Lee Counties are expressly excluded. 5.3.3.3. Expense of overtime work requiring higher than regular rates approved in advance and in writing by the COUNTY. Page 22 of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver.l Packet Pg. 1406 16.G.1.a 5.3.3.4. Permit Fees required by the Project. 5.3.3.5. Expense of models for the COUNTY's use. 5.3.3.6. Fees paid for securing approval of authorities having jurisdiction over the Work Order required under the applicable Work Order. 5.3.3.7. Other items on request and approved in writing by the COUNTY. 5.3.4. The CONSULTANT shall bear and pay all overhead and other expenses, except for authorized reimbursable expenses, incurred by CONSULTANT in the performance of the Services. 5.3.5. Records of Reimbursable Expenses shall be kept on a generally recognized accounting basis. Page 23 of 30 21 P PSA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver_ l Packet Pg. 1407 16.G.1.a SCHEDULE B - ATTACHMENT 1 RATE SCHEDULE Title Hourly Rate Principal Consultant $275 Senior Consultant $265 Consultant $230 Project Manager $185 Planner $165 Gra hies/GIS/CADD Technician $120 Administrative Assistant/Clerical Support $80 The above hourly rates are applicable to Time and Materials task(s) only. The above list may not be all inclusive. Hourly rates for additional categories required to provide particular project services shall be mutually agreed upon by the County and firm, in writing, on a project by project basis, as needed, and will be set forth in the Work Order agreed upon by the parties. Page 24 of 30 PSA (Non-CCNA) fixed Term Continuing Contract 2023 Ver 1 L1 r Packet Pg. 1408 16.G.1.a SCHEDULE C INSURANCE COVERAGE 1. The amounts and types of insurance coverage shall conform to the following minimum requirements with the use of Insurance Services Office (ISO) forms and endorsements or their equivalents. If CONSULTANT has any self -insured retentions or deductibles under any of the below listed minimum required coverages, CONSULTANT must identify on the Certificate of Insurance the nature and amount of such self -insured retentions or deductibles and provide satisfactory evidence of financial responsibility for such obligations. All self -insured retentions or deductibles will be CONSULTANT's sole responsibility. 2. The insurance required by this Agreement shall be written for not less than the limits specified herein or required by law, whichever is greater. 3. Coverages shall be maintained without interruption from the date of commencement of the services until the date of completion and acceptance of the Project by the COUNTY or as specified in this Agreement, whichever is longer. 4. Certificates of insurance acceptable to the COUNTY shall be filed with the COUNTY within N ten (10) calendar days after Notice of Award is received by CONSULTANT evidencing the fact U_ that CONSULTANT has acquired and put in place the insurance coverages and limits required hereunder. In addition, certified, true and exact copies of all insurance policies required shall be 3 provided to the COUNTY, on a timely basis, if requested by the COUNTY. Such certificates shall a contain a provision that coverages afforded under the policies will not be canceled or allowed to expire until at least thirty (30) days prior written notice has been given to the COUNTY. W) LO CONSULTANT shall also notify the COUNTY, in a like manner, within twenty-four (24) hours after receipt, of any notices of expiration, cancellation, non -renewal or material change in coverages or limits received by CONSULTANT from its insurer, and nothing contained herein shall relieve CONSULTANT of this requirement to provide notice. In the event of a reduction in the aggregate limit of any policy to be provided by CONSULTANT hereunder, CONSULTANT shall immediately take steps to have the aggregate limit reinstated to the full extent permitted under such policy. 5. All insurance coverages of the CONSULTANT shall be primary to any insurance or self- _1 insurance program carried by the COUNTY applicable to this Project. 6. The acceptance by the COUNTY of any Certificate of Insurance does not constitute approval or agreement by the COUNTY that the insurance requirements have been satisfied or that the insurance policy shown on the Certificate of Insurance is in compliance with the requirements of this Agreement. 7. CONSULTANT shall require each of its subconsultants to procure and maintain, until the completion of the subconsultant's services, insurance of the types and to the limits specified in this Section except to the extent such insurance requirements for the subconsultant are expressly waived in writing by the COUNTY. 8. Should at any time the CONSULTANT not maintain the insurance coverages required herein, the COUNTY may terminate the Agreement or at its sole discretion shall be authorized to purchase such coverages and charge the CONSULTANT for such coverages purchased. If CONSULTANT fails to reimburse the COUNTY for such costs within thirty (30) days after demand, Page 25 of 30 P5A (Non-CCNA) Fixed Term Continuing Contract 2023 Ver.l Packet Pg. 1409 16.G.1.a the COUNTY has the right to offset these costs from any amount due CONSULTANT under this Agreement or any other agreement between the COUNTY and CONSULTANT. The COUNTY shall be under no obligation to purchase such insurance, nor shall it be responsible for the coverages purchased or the insurance company or companies used. The decision of the COUNTY to purchase such insurance coverages shall in no way be construed to be a waiver of any of its rights under the Agreement. 9. If the initial, or any subsequently issued Certificate of Insurance expires prior to the completion of the services required hereunder or termination of the Agreement, the CONSULTANT shall furnish to the COUNTY, in triplicate, renewal or replacement Certificate(s) of Insurance not later than three (3) business days after the renewal of the policy(ies). Failure of the Contractor to provide the COUNTY with such renewal certificate(s) shall be deemed a material breach by CONSULTANT and the COUNTY may terminate the Agreement for cause. 10. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY. Required by this Agreement? ❑■ Yes ❑ No Workers' Compensation and Employers' Liability Insurance shall be maintained by the CONSULTANT during the term of this Agreement for all employees engaged in the work under this Agreement in accordance with the laws of the State of Florida. The amounts of such insurance shall not be less than: a. Worker's Compensation - Florida Statutory Requirements M W) Ln b. Employers' Liability - The coverage must include Employers' Liability with a minimum limit of $ 100000 for each accident. -� a� c The insurance company shall waive all claims rights against the COUNTY and the policy shall be Cn so endorsed. o s= a� 11. United States Longshoreman's and Harbor Worker's Act coverage shall be maintained >i where applicable to the completion of the work. Required by this Agreement? ❑ Yes X No H 12, Maritime Coverage (Jones Act) shall be maintained where applicable to the completion, of the work. a Required by this Agreement? ❑ Yes ❑■ No 13. COMMERCIAL GENERAL LIABILITY. Required by this Agreement? FE-1 Yes ❑ No A. Commercial General Liability Insurance, written on an "occurrence" basis, shall be maintained by the CONSULTANT. Coverage will include, but not be limited to, Bodily Injury, Property Damage, Personal Injury, Contractual Liability for this Agreement, Independent Contractors, Broad Form Property Damage including Completed Operations and Products and Completed Operations Coverage. Products and Completed Operations coverage shall be Page 26 of 30 t'SA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver_ 1 Packet Pg. 1410 16.G.1.a maintained for a period of not less than five (5) years following the completion and acceptance by the COUNTY of the work under this Agreement. Limits of Liability shall not be less than the following: Coverage shall have minimum limits of $ 1,000,000 Per Occurrence, $ 2,000,000 aggregate. B. The General Aggregate Limit shall apply separately to this Project and the policy shall be endorsed using the following endorsement wording. "This endorsement modifies insurance provided under the following: Commercial General Liability Coverage Part. The General Aggregate Limit under LIMITS OF INSURANCE applies separately to each of your projects away from premises owned by or rented to you." Applicable deductibles or self -insured retentions shall be the sole responsibility of CONSULTANT. Deductibles or self -insured retentions carried by the CONSULTANT shall be subject to the approval of the Risk Management Director or his/her designee. 14. Collier County Board of County Commissioners, OR, Board of County Commissioners in Collier County, OR, Collier County Government shall be listed as the Certificate Holder and included as an "Additional Insured" on the Insurance Certificate for Commercial General Liability where required. The insurance shall be primary and non-contributory with respect to any other insurance maintained by, or available for the benefit of, the Additional Insured and the Contractor's policy shall be endorsed accordingly. Contractor shall ensure that all subcontractors comply with the same insurance requirements that the Contractor is required to meet. 15. Watercraft Liability coverage shall be carried by the CONSULTANT or the W) SUBCONSULTANT in limits of not less than the Commercial General Liability limit shown in subparagraph (1) above if applicable to the completion of the Services under this Agreement. c Required by this Agreement? ❑ Yes ❑E No T 0 16. Aircraft Liability coverage shall be carried by the CONSULTANT or the SUBCONSULTANT in limits of not less than $5,000,000 each occurrence if applicable to the >i completion of the Services under this Agreement. _ Required by this Agreement? ❑ Yes ■❑ No 17. AUTOMOBILE LIABILITY INSURANCE. Required by this Agreement? ❑ Yes ❑■ No Business Auto Liability: Coverage shall have minimum limits of $ Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This shall include: Owned Vehicles, Hired and Non -Owned Vehicles and Employee Non -The ownership. 18. TECHNOLOGY ERRORS and OMISSIONS INSURANCE. Required by this Agreement? ❑ Yes ❑■ No Page 27 of 30 PSA (Non-CCNA) Fixed Term Continuing Contract 2023 Ver.I Packet Pg. 1411 16.G.1.a Technology Errors and Omissions Insurance: Coverage shall have minimum limits of $ Per Occurrence. 19. CYBER INSURANCE. Required by this Agreement? ❑ Yes ■❑ No Cyber Insurance: Coverage shall have minimum limits of $ 20. UMBRELLA LIABILITY. Per Occurrence A. Umbrella Liability may be maintained as part of the liability insurance of the CONSULTANT and, if so, such policy shall be excess of the Employers' Liability, Commercial General Liability, and Automobile Liability coverages required herein and shall include all coverages on a "following form" basis. B. The policy shall contain wording to the effect that, in the event of the exhaustion of any underlying limit due to the payment of claims, the Umbrella policy will "drop down" to apply as primary insurance. 21. PROFESSIONAL LIABILITY INSURANCE. Required by this Agreement? ■❑ Yes ❑ No M Ln LO A. Professional Liability: Shall be maintained by the CONSULTANT to ensure its legal liability for claims arising out of the performance of professional services under this Agreement. CONSULTANT waives its right of recovery against COUNTY as to any claims under this insurance. Such insurance shall have limits of not less than $1,000,000 each claim andv5 ' L aggregate. o as g. Any deductible applicable to any claim shall be the sole responsibility of the >i CONSULTANT. Deductible amounts are subject to the approval of the COUNTY. P 06 C. The CONSULTANT shall continue this coverage for this Project for a period of not less than five (5) years following completion and acceptance of the Project by the COUNTY. D. The policy retroactive date will always be prior to the date services were first performed by CONSULTANT or the COUNTY, and the date will not be moved forward during the term of this Agreement and for five years thereafter. CONSULTANT shall promptly submit Certificates of Insurance providing for an unqualified written notice to the COUNTY of any cancellation of coverage or reduction in limits, other than the application of the aggregate limits provision. In addition, CONSULTANT shall also notify the COUNTY by certified mail, within twenty-four (24) hours after receipt, of any notices of expiration, cancellation, non -renewal or material change in coverages or limits received by CONSULTANT from its insurer. In the event of more than a twenty percent (20%) reduction in the aggregate limit of any policy, CONSULTANT shall immediately take steps to have the aggregate limit reinstated to the full extent permitted under such policy. CONSULTANT shall promptly submit a certified, true copy of the policy and any endorsements issued or to be issued on the policy if requested by the COUNTY. Page 28 of 30 PSA (Nnn-CCNA) Fixed'Ycrm Continuing Contract 2023 Ver.l Packet Pg. 1412 16.G.1.a 22. VALUABLE PAPERS INSURANCE. In the sole discretion of the COUNTY, CONSULTANT may be required to purchase valuable papers and records coverage for plans, specifications, drawings, reports, maps, books, blueprints, and other printed documents in an amount sufficient to cover the cost of recreating or reconstructing valuable papers or records utilized during the term of this Agreement. 23. PROJECT PROFESSIONAL LIABILITY, A. If the COUNTY notifies CONSULTANT that a project professional liability policy will be purchased, then CONSULTANT agrees to use its best efforts in cooperation with THE COUNTY and the COUNTY's insurance representative, to pursue the maximum credit available from the professional liability carrier for a reduction in the premium of CONSULTANT's professional liability policy. If no credit is available from CONSULTANT's current professional policy underwriter, then CONSULTANT agrees to pursue the maximum credit available on the next renewal policy, if a renewal occurs during the term of the project policy (and on any subsequent professional liability policies that renew during the term of the project policy). CONSULTANT agrees that any such credit will fully accrue to the COUNTY. Should no credit accrue to the COUNTY, the COUNTY and CONSULTANT, agree to negotiate in good faith a credit on behalf of the COUNTY for the provision of project -specific professional liability insurance policy in consideration for a reduction in CONSULTANT's self -insured retention and the risk of uninsured or underinsured consultants. B. The CONSULTANT agrees to provide the following information when requested by W) the COUNTY or the COUNTY's Project Manager: N 1. The date the professional liability insurance renews. 2. Current policy limits. T 3. Current deductibles/self-insured retention. 0 4. Current underwriter. 5. Amount (in both dollars and percent) the underwriter will give as a credit if the >, policy is replaced by an individual project policy. _ 6. Cost of professional insurance as a percent of revenue. ~ 7. Affirmation that the design firm will complete a timely project errors and omissions application. C. If the COUNTY elects to purchase a project professional liability policy, CONSULTANT to be insured will be notified and the COUNTY will provide professional liability insurance, naming CONSULTANT and its professional subconsultants as named insureds. END OF SCHEDULE C Page 29 of 34 PSA (Nan-CCNA) Fixed Term Continuing Contract 2023 Ver_ l Packet Pg. 1413 16.G.1.a Other: SCHEDULE D (Description) ❑ following this page (pagels through 0 this schedule is not applicable Page 30 of 30 L1 r PSA (Non-CCNA) Fixed Term Continuing Conlract 2023 VCr.I Cps® Packet Pg. 1414 ATE I 16.G.1.b CERTIFICATE OF LIABILITY INSURANCE O5/08/2023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THI: CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIEI BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZE[ REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsec If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement of this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 1-800-527-9049 NAME:CT Audrey McNeill Holmes Murphy & Associates - IL PHONE FAX [All' u., a_j. 309-282-3907 (Air ri,a. 866-501-3945 6035 N. Knoxville Suite 103A Peoria, IL 61614 INSURED Crawford, Murphy & Tilly, Inc. CMT North America, Inc. 2750 West Washington ADDRESS: amcneilit?notmesmurpny.com INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: EMPLOYERS MUT CAS CO 21415 INSURERB: TRAVELERS PROP CAS CO OF AMER 25674 INSURER C: COLONY INS CO 39993 INSURER D:XL SPECIALTY INS CO 37885 INSURER E : Springfield, IL 62702 1INSURER F: COVERAGES CERTIFICATE NUMBER: 68714163 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOI INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THI; CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERM: EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD SUBR WVD POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DDIYYYY LIMITS A X COMMERCIAL GENERAL LIABILITY X 5D57480 01/01/23 01/01/24 EACH OCCURRENCE $ 1,000,000 F__� CLAIMS -MADE OCCUR DAMAGE TO RENTED PREMISESccurrrence Ea occurrence) $ 1,000,000 X MED EXP (Any one person) $ 10,000 Sev of Int PERSONAL & ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY � PRO - POLICY LOC PRODUCTS - COMP/OP AGG $ 2,000,000 Valuable Papers $ 1,000,000 OTHER: • AUTOMOBILE LIABILITY 5E57480 01/01/23 01/01/24 COMBINED SINGLE LIMIT Ea accident $ 1,000,000 X BODILY INJURY (Per person) $ ANY AUTO OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS X PROPERTY DAMAGE Per accident $ HIRED X NON -OWNED AUTOS ONLY AUTOS ONLY A X UMBRELLA LIAB X OCCUR 5J57480 01/01/23 01/01/24 EACH OCCURRENCE $ 10,000,000 AGGREGATE $ 10,000,000 EXCESS LIAB CLAIMS -MADE DED X RETENTION $ 10,000 $ A WORKERS COMPENSATION SM57480 (FL) O1/O1/23 O1/O1/24 X STATUTE ERH AND EMPLOYERS' LIABILITY E.L. EACH ACCIDENT $ 1,000,000 A ANYPROPRIETOR/PARTNER/EXECUTIVE 5H57480 01/01/23 01/01/24 B OFFICER/MEMBER EXCLUDED? (Mandatory in NH) N/A 6JUB6R19963 (IL) 01/01/23 O1 / O1 /24 E.L. DISEASE -EA EMPLOYEE $ 1,000,000 A describe under If DESCRIPTION DESCRIPTION OF OPERATIONS below 5T57480 NJ ( )E.L. 01/01/23 01/01/24 DISEASE -POLICY LIMIT $ 1,000,000 C Pollution Liability CSP4223613 01/01/23 01/01/24 Claim / Aggregate 2,000,000 D Professional Liability DPR5006413 01/01/23 01/01/24 Each Claim 5,000,000 Each Claim Aggregate 7,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) CONTRACT NUMBER 22-8051 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS IS NAMED AS ADDITIONAL INSURED ON THE GENERAL LIABILITY, AUTO LIABILITY, AND UMBRELLA LIABILITY POLICIES AS REQUIRED BY WRITTEN CONTRACT. GENERAL AND AUTO LIABILITY POLICIES ARE PRIMARY AND NON-CONTRIBUTORY. A 30 DAY NOTICE OF CANCELLATION APPLIES TO THE GENERAL LIABILITY, AUTO LIABILITY, UMBRELLA LIABILITY, AND WORKERS COMPENSATION POLICIES AS REQUIRED BY WRITTEN CONTRACT, PER POLICY TERMS AND CONDITIONS. CERTIFICATE HOLDER COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 3295 TAMIAMI TRAIL E. NAPLES, FL 34112 USA CO) W) In N H 06 t CL 7 L O M L U _I 0 U u7 O 00 tV N C CANCELLATION d E t SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORI THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED II ACCORDANCE WITH THE POLICY PROVISIONS. Q AUTHORIZED REPRESENTATIVE © 1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD amcneillil Packet Pg. 1415 68714163 16.G.1.b COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - AUTOMATIC STATUS WHEN REQUIRED IN CONSTRUCTION CONTRACT OR AGREEMENT -PRIMARY AND NONCONTRIBUTORY This endorsement modifies the insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM A. Section II — Who Is An Insured is amended to a. The preparing, approving, or failing to }, include as an additional insured: prepare or approve, maps, shop drawings, 1. Any person or organization for whom you are opinions, reports, surveys, field orders, aEi performing operations when you and such change orders or drawings and person or organization have agreed in writing specifications; or in a contract or agreement that such person or b. Supervisory, inspection, architectural or a organization be added as an additional insured engineering activities. t on your policy; and This exclusion applies even if the claims against Q' 2. Any other person or organization you are any insured allege negligence or other wrongdoing a required to add as an additional insured under in the supervision, hiring, employment, training or LO the contract or agreement described in monitoring of others by that insured, if the cco" Paragraph 1. above. "occurrence" which caused the "bodily injury" or c: Such person(s) or organization(s) is an additional "property damage", or the offense which caused a insured only with respect to liability for "bodily the "personal and advertising injury", involved the u- injury", "property damage" or "personal and rendering of, or the failure to render, any advertising injury" caused, in whole or in part, by: professional architectural, engineering or surveying a. Your acts or omissions; or services. 3 Q 2. "Bodily injury" or "property damage" occurring b. The acts or omissions of those acting on after: c i your behalf; a. All work, including materials, parts or LO in the performance of your ongoing operations for equipment furnished in connection with the additional insured. such work, on the project (other than 2' However, the insurance afforded to such additional service, maintenance or repairs) to be insured described above: performed by or on behalf of the additional a. Only applies to the extent permitted by law; insured(s) at the location of the covered t Q. and operations has been completed; or b. Will not be broader than that which you are b. That portion of "your work" out of which the 2 required by the contract or agreement to injury or damage arises has been put to its -a provide for such additional insured. intended use by any person or organization ,0 other than another contractor, or A person's or organization's status as an additional subcontractor engaged in performing L insured under this endorsement ends when your operations for a principal as a part of the vi operations for the person or organization described same project. 0 in Paragraph 1. above are completed. C. With respect to the insurance afforded to these v r B. With respect to the insurance afforded to these additional insureds, the following is added to c additional insureds, the following additional Section III — Limits Of Insurance: o exclusions apply: The most we will pay on behalf of the additional N This insurance does not apply to: insured is the amount of insurance: 1. "Bodily injury", "property damage" or "personal 1. Required by the contract or agreement E and advertising injury" arising out of the described in Paragraph A.1.; or rendering of, or the failure to render, any 2. Available under the applicable Limits of professional architectural, engineering or Insurance shown in the Declarations; a surveying services, including: whichever is less. CG7174(10-13) Includes copyrighted material of ISO Properties, Inc. with its permission. Packet Pg. 1416 16.G.1.b This endorsement shall not increase the applicable (1) The additional insured is a Named Insured Limits of Insurance shown in the Declarations. under such other insurance; and D. The following is added to the Other Insurance (2) You have agreed in writing in a contract or Condition and supersedes any provision to the agreement that this insurance would be primary contrary: and would not seek contribution from any other Primary and Noncontributory Insurance insurance available to the additional insured. This insurance is primary to and will not seek E. All other terms and conditions of this policy remain contribution from any other insurance available to unchanged. an additional insured under your policy provided that: CG7174(10-13) Includes copyrighted material of ISO Properties, Inc. with its permission. Packet Pg. 1417 16.G.1.b COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET WAIVER OF SUBROGATION WHEN REQUIRED IN A WRITTEN CONTRACT OR AGREEMENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE FORM The following is added to Paragraph 8. Transfer Of Rights Of Recovery Against Others To Us of Section IV — Conditions: We waive any right of recovery we may have against any person or organization because of payments we make for injury or damage arising out of: 1. Your ongoing operations; or 2. "Your work" included in the "products -completed operations hazard". However, this waiver applies only when you have agreed in writing to waive such rights of recovery in a written contract or agreement, and only if the written contract or agreement: 1. Is in effect or becomes effective during the term of this policy; and 2. Was executed prior to loss. CG7555(2-19) Includes copyrighted material of ISO Properties, Inc. with its permission. Packet Pg. 1418 16.G.1.c DocuSign Envelope ID: BFA71530-0697-4853-9550-336D38CFD3E4 Co rte�-r County Procurement Services Division Notice of Recommended Award Solicitation: 22-8051 Title: Airport Management Consulting Services Due Date and Time: December 12, 2023, at 3:00 PM EST Respondents; Company Name City County State Final Ranking Responsive/Responsible. , Crawford, Murphy & Tilly, Inc. St. Petersburg Pinellas FL 1 Yes/Yes Utilized Local Vendor Preference; Yes No - On September 23, 2022, the.Procurement Services Division released notices of Request for Proposal No. 22- 8051 for Airport Management Consulting Services. Eleven thousand five hundred thirty -.nine (11,539) firms were notified, one hundred two.(102) firms viewed the solicIation information, and one (1) responsive and responsible proposal was received by the December 12, 2027, deadline. The bid due date was extended twice for total of.twenty-four.(24) days. Vendor outreach was conducted during the extension periods to increase competition.. The Selection Committee met on January 23, 2023, and after scoring the proposal and deliberation, the Committee determined that they wanted the.firm to provide an oral presentation priorto final ranking..` On February 13, 2023, the Selection Committee reconvened for the presentation and. established a final ranking as shown above. Staff is recommending awarding to the top ranked firm, Crawford, Murphy & Tilly, Inc. Contract Driven ® Purchase Order Driven 0 . Required Signatures DocuSlgned dy: Project Manager: Qin fxAAdn << Procurement Strategist; I �� .t 2/15/2023 GF473373478... Procurement Services Director: Daeu5{9ned by: Sr,�.d�A {l"V'1A a nfff99WW9... 2/15/2023 Date d d a� c c 0 c.� c d E am c� c 0 0 Q. LO 0 0 N N a U_ CU 3 a M LO LO Packet Pg. 1419 16.G.1.e ;r CorierC014*lty Procurement Services Division COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS REQUEST FOR PROPOSAL (RFP) FOR Airport Management Consulting Services SOLICITATION NO.: 22-8051 r M LO LO N LISA OIEN, PROCUREMENT STRATEGIST PROCUREMENT SERVICES DIVISION 3295 TAMIAMI TRAIL EAST, BLDG C-2 NAPLES, FLORIDA 34112 TELEPHONE: (239) 252-8935 Lisa.Oien@colliercountyfl.gov (Email) This solicitation document is prepared in a Microsoft Word format (Rev 8/7/2017). Any alterations to this document made by the Vendor may be grounds for rejection of proposal, cancellation of any subsequent award, or any other legal remedies available to the Collier County Government. Packet Pg. 1420 16.G.1.e SOLICITATION PUBLIC NOTICE REQUEST FOR PROPOSAL (RFP) 22-8051 NUMBER: PROJECT TITLE: Airport Management Consulting Services PRE -PROPOSAL CONFERENCE: October 20, 2022, at 10:30 A.M. LOCATION: PROCUREMENT SERVICES DIVISION, CONFERENCE ROOM A, 3295 TAMIAMI TRAIL EAST, BLDG C-2, NAPLES, FLORIDA 34112 DUE DATE: November 7, 2022 at 3:00 P.M. PLACE OF RFP OPENING: PROCUREMENT SERVICES DIVISION 3295 TAMIAMI TRAIL EAST, BLDG C-2 NAPLES, FL 34112 All proposals shall be submitted online via the Collier County Procurement Services Division Online Bidding System: httDs://www.bidsvnc.com/bidsvnc-cas/ INTRODUCTION As requested by the Collier County Airport Authority (hereinafter, the "Division or Department"), the Collier County Board of County Commissioners Procurement Services Division (hereinafter, "County") has issued this Request for Proposal (hereinafter, "RFP") with the intent of obtaining proposals from interested and qualified vendors in accordance with the terms, conditions and specifications stated or attached. The vendor, at a minimum, must achieve the requirements of the Specifications or Scope of Work stated. The purpose of this solicitation is to acquire an airport management consultant to provide operational, financial, and business consulting services for the Marco Island Executive Airport (MKY), Immokalee Regional Airport (IMM), and the Everglades Airpark (XO1), which together comprise the Collier County Airport Authority. BACKGROUND The Collier County Airport Authority (CCAA) is the Fixed Base Operator (FBO) of three (3) Collier County owned General Aviation Airports. The airports include, the Marco Island Executive Airport, Immokalee Regional Airport, and the Everglades Airpark. Aircraft activity at the airports is conducted by private, corporate, charter, training, military, law enforcement, and occasionally air ambulance aircraft organizations. The CCAA has identified a need for the availability of an airport management consulting service. It will be important to be able to call upon an experienced airport management consultant when needed to provide analysis, services and support to the airport management team. TERM OF CONTRACT The contract term, if an award(s) is made, is intended to be for three (3) years with two (2) one (1) year renewal options. Prices shall remain firm for the initial term of this contract. Surcharges will not be accepted in conjunction with this award, and such charges should be incorporated into the pricing structure. The County Manager, or designee, may, at his discretion, extend the Agreement under all of the terms and conditions contained in this Agreement for up to one hundred eighty (180) days. The County Manager, or designee, shall give the Contractor written notice of the County's intention to extend the Agreement term not less than ten (10) days prior to the end of the Agreement term then in effect. All goods are FOB destination and must be suitably packed and prepared to secure the lowest transportation rates and to comply with all carrier regulations. Risk of loss of any Goods sold hereunder shall transfer to the COUNTY at the time and place of delivery, provided that risk of loss prior to actual receipt of the goods by the COUNTY nonetheless remain with VENDOR. M Ln Ln N c 0 cc .2 0 LO 0 0 N N a+ c m s 0 Q 2 Packet Pg. 1421 The scope of consulting services for the Division under the proposed engagement includes, but is not limited to, the following: 1. Prepare or provide support for the development of financial and business -related reports, analyses and forecasts including, but not limited to: • Industry -related regulatory compliance support. • Analyses of aeronautical and non -aeronautical Fair Market Value (FMV) property values to include vacant land, commercial/industrial, interior building spaces (office/counter/etc.), and hangar facilities. • Recommendations on general aviation standards and best practices related to industry standards, property value assessments and Rules & Regulations. • Production of FMV studies, Rules & Regulations documentation, or presentations for staff review and public distribution. • Other financial and/or business -related ad hoc reports, presentations, analyses, and forecasts as requested. 2. Provide analyses, services and support to assist Collier County with the following tasks at all three general aviation airport locations: • Assist with the development of Fixed Based Operator (FBO) standards and agreements. • Propose best practices for land rental and lease policies and procedures. • Recommend fee structures, including land rentals, hangar rentals, fuel flowage fees, FBO fees, etc. • Develop recommendations and policies to assure that the County's general aviation facilities are self-sustaining. • Assist in developing strategies to fund aeronautical and non -aeronautical capital needs, including developing federal and state grant applications and accessing favorable short-term and long-term capital borrowing. Provide services to plan/negotiate/maintain and/or bid and assist with documents for the following types of airport agreements: • T-Hangar Lease Agreements Car Rental Concession and Service Facility Agreements Cargo and Corporate Hangar Leases (both ground leases under which the tenant develops the facility and space leases for County -constructed facilities) Food/Beverage/Retail Concession Agreements 4. Provide Federal Aviation Administration Airport Improvement Program (AIP) and Florida Department of Transportation (FDOT) aviation grant program support, analyses and forecasting including, but not limited to: • Preparation of documents for AIP and FDOT applications, amendments, and other reporting. • Analyses of AIP and FDOT programs. • Regulatory reporting and documentation. • Presentation support related to the AIP and FDOT programs. • Maintain and update the Authority's Joint Automated Capital Improvement Program (JACIP) for all three airports. • AIP, FDOT, and/or Local Project Estimations. • Federal grant management following 2 CFR 200 compliance, County grant policies, and specific grantor regulations. Draft, administer, and maintain mandatory operational support programs and policies. • Disadvantaged Business Enterprise (DBE) goals and objectives • Spill Prevention, Control, and Countermeasure (SPCC) Plans • Exotic Vegetation Maintenance • FDOT required Security Plans • Airport Emergency Response Plans • Hurricane Response Plan • Minimum Standards 6. Provide analyses, services, and support to assist the County benchmark and evaluate its operating and financial performance against industry standards. REQUEST FOR PROPOSAL (RFP) PROCESS 1.1 The Proposers will submit a qualifications proposal which will be scored based on the criteria in Evaluation Criteria for Development of Shortlist, which will be the basis for short -listing firms. The Proposers will need to meet the minimum requirements outlined herein in order for their proposal to be evaluated and scored by the COUNTY. The COUNTY will then score and rank the firms and enter into negotiations with the top ranked CO) Ln Ln N c 0 cc 2 0 LO 0 0 N N c m E s Q Packet Pg. 1422 16.G.1.e firm to establish cost for the services needed. The COUNTY reserves the right to issue an invitation for oral presentations to obtain additional information after scoring and before the final ranking. With successful negotiations, a contract will be developed with the selected firm, based on the negotiated price and scope of services and submitted for approval by the Board of County Commissioners. 1.2 The COUNTY will use a Selection Committee in the Request for Proposal selection process. 1.3 The intent of the scoring of the proposal is for respondents to indicate their interest, relevant experience, financial capability, staffing and organizational structure. 1.4 The intent of the oral presentations, if deemed necessary, is to provide the vendors with a venue where they can conduct discussions with the Selection Committee to clarify questions and concerns before providing a final rank. 1.5 Based upon a review of these proposals, the COUNTY will rank the Proposers based on the discussion and clarifying questions on their approach and related criteria, and then negotiate in good faith an Agreement with the top ranked Proposer. 1.6 If, in the sole judgment of the COUNTY, a contract cannot be successfully negotiated with the top -ranked firm, negotiations with that firm will be formally terminated and negotiations shall begin with the firm ranked second. If a contract cannot be successfully negotiated with the firm ranked second, negotiations with that firm will be formally terminated and negotiations shall begin with the third ranked firm, and so on. The COUNTY reserves the right to negotiate any element of the proposals in the best interest of the COUNTY. RESPONSE FORMAT AND EVALUATION CRITERIA FOR DEVELOPMENT OF SHORTLIST: 1.7 For the development of a shortlist, this evaluation criterion will be utilized by the COUNTY'S Selection Committee to score each proposal. Proposers are encouraged to keep their submittals concise and to include a minimum of marketing materials. Proposals must address the following criteria: 1.8 Evaluation Criteria Maximum Points 1. Cover Letter / Management Summary 5 Points 2. Certified Woman and/or Minority Business Enterprise 5 Points 3. Business Plan and Approach 25 Points 4. Cost of Services to the County 25 Points 5. Experience and Capacity ofthe Firm 30 Points 6. Local Vendor Preference 10 Points OF N 0. W 13 3 TOTAL POSSIBLE POINTS 100 Points a Tie Breaker: In the event of a tie at final ranking, award shall be made to the proposer with the lower volume of work W previously awarded. Volume of work shall be calculated based upon total dollars paid to the proposer in the twenty-four v (24) months prior to the RFP submittal deadline. Payment information will be retrieved from the County's financial system of record. The tie breaking procedure is only applied in the final ranking step of the selection process and is invoked by the Procurement Services Division Director or designee. In the event a tie still exists, selection will be o determined based on random selection by the Procurement Services Director before at least three (3) witnesses. c 2 Each criterion and methodology for scoring is further described below. 6 N ***Proposals must be assembled, at minimum, in the order of the Evaluation Criteria listed or your LO 0 proposal may be deemed non -responsive*** N EVALUATION CRITERIA NO. 1: COVER LETTER/MANAGEMENT SUMMARY (5 Total Points Available) c E Provide a cover letter, signed by an authorized officer of the firm, indicating the underlying philosophy of the firm in s providing the services stated herein. Include the name(s), telephone number(s) and email(s) of the authorized contact Q person(s) concerning proposal. Submission of a signed Proposal is Vendor's certification that the Vendor will accept any awards as a result of this RFP. EVALUATION CRITERIA NO. 2: CERTIFIED WOMAN AND/OR MINORITY BUSINESS ENTERPRISE (5 Total Points Available) Submit certification with the Florida Department of Management Service, Office of Supplier Diversity as a Certified Woman and/or Minority Business Enterprise. 4 Packet Pg. 1423 16.G.1.e EVALUATION CRITERIA NO.3: BUSINESS PLAN (25 Total Points Available) The business plan should display the proposer's understanding of general aviation airport management and identify any issues or concerns of any significance that may be appropriate. In this criterion, include but not limited to: • Please describe how your company typically prioritizes projects when multiple requests are coming in at the same time. • Provide a detailed plan of approach for a project that exceeds twenty-five thousand dollars ($25,000). • Provide a sample schedule, with milestones for a project that exceeds twenty-five thousand dollars ($25,000). • Include with the Business Plan or as an attachment, a copy of a Project Summary as an example of work product. This should be for one of the projects listed as a reference. EVALUATION CRITERIA NO.4: COST OF SERVICES TO THE COUNTY (25 Total Points Available) Personnel Job Title/Role listed below are typical however may not be inclusive of every firm. Provide the maximum hourly rates for the disciplines closest representation of your firm's applicable positions. Personnel Job Title/Role Hourly Rate Principal Consultant Senior Consultant Consultant Project Manager Planner Gra hics/GIS/CADD Technician Administrative Assistant/Clerical Support Initial pricing is for evaluation purposes and are subiect to change during negotiations with the selected vendor. EVALUATION CRITERIA NO. 5: EXPERIENCE AND CAPACITY OF THE FIRM (30 Total Points Available) This criterion measures the proposer's past experience, expertise and capacity with general aviation airport management consultant services. Please provide experience with all elements of the project scope as generally described with emphasis on the following: • Provide information that documents your firm's and subcontractors' qualifications to produce the required deliverables, including abilities, capacity, skill, and financial strength, and number of years of experience in providing the required services. • Describe the various team members' successful experience in working with one another on previous proj ects. • Description of the proposed contract team and the role to be played by each member of the team. • Attach brief resumes of all proposed project team members who will be involved in the management of the total package of services, as well as the delivery of specific services. The County requests that the vendor submits no fewer than three (3) and no more than ten (10) completed reference forms from clients during a period of the last 5 years whose projects are of a similar nature to this solicitation as a part of their proposal. Provide information on the projects completed by the Proposer that best represent projects of similar size, scope and complexity of this project using form provided in Form 5. Proposers may include two (2) additional pages for each project to illustrate aspects of the completed project that provides the information to assess the experience of the Proposer on relevant project work. EVALUATION CRITERIA NO. 6: LOCAL VENDOR PREFERENCE (10 Total Points Available) Local business is defined as the vendor having a current Business Tax Receipt issued by the Collier or Lee County Tax Collector prior to proposal submission to do business within Collier County, and that identifies the business with a permanent physical business address located within the limits of Collier or Lee County from which the vendor's staff operates and performs business in an area zoned for the conduct of such business. VENDOR CHECKLIST M LO LO N c cc .2 0 LO 0 0 N N a+ c m E Q ***Vendor should check off each of the following items as the necessary action is completed (please see, Vendor Check List)*** Packet Pg. 1424 (seoimeS 6ui;insuo�;uawo6euew;aod.aiy 6508-ZZ d=IU PJeAtxV : 6£55Z) 6uillueU Ieu.� �508-ZZ :;uawyoe4;br � o y e� O � F d e� A U s. e� E� x ax Qa w H w 0 z � 'a 1.0 U u c� Q I Ln N r a r CD u m a- 0 v on a 16.1.1 06/27/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.I.1 Doc ID: 25886 Item Summary: Miscellaneous Correspondence June 27, 2023. Meeting Date: 06/27/2023 Prepared by: Title: Management Analyst II — County Manager's Office Name: Geoffrey Willig 06/20/2023 9:33 AM Submitted by: Title: Deputy County Manager — County Manager's Office Name: Amy Patterson 06/20/2023 9:33 AM Approved By: Review: County Manager's Office Geoffrey Willig Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 06/20/2023 9:33 AM 06/27/2023 9:00 AM Packet Pg. 1426 16.1.1.a BOARD OF COUNTY COMMISSIONERS MISCELLANEOUS CORRESPONDENCE JUNE 27, 2023 1. MISCELLANEOUS ITEMS TO FILE FOR RECORD WITH ACTION AS DIRECTED: A. DISTRICTS: 1) Wentworth Estates Community Development District: 12/11/2014 Signed Meeting Minutes & Affidavit 03/12/2015 Oath of Office — David Negip, Michelle May & Joseph Newsome 03/12/2015 Signed Meeting Minutes & Affidavit 05/14/2015 Signed Meeting Minutes 08/13/2015 Signed Meeting Minutes & Affidavit 05/12/2016 Signed Meeting Minutes & Affidavit 08/11/2016 Signed Meeting Minutes 05/11/2017 Oath of Office — James Oliver 05/11/2017 Signed Meeting Minutes & Affidavit 08/10/2017 Signed Meeting Minutes & Affidavit 10/12/2017 Signed Meeting Minutes & Affidavit 11/09/2017 Signed Meeting Minutes 12/14/2017 Signed Meeting Minutes & Affidavit 09/25/2018 Signed Meeting Minutes 01/10/2019 Signed Meeting Minutes & Affidavit 05/09/2019 Signed Meeting Minutes & Affidavit 07/11/2019 Signed Meeting Minutes 10/11/2019 Signed Meeting Minutes 02/13/2020 Signed Meeting Minutes & Affidavit 03/12/2020 Signed Meeting Minutes 05/14/2020 Signed Meeting Minutes 06/11/2020 Signed Meeting Minutes & Affidavit 09/10/2020 Signed Meeting Minutes 10/08/2020 Affidavit 11/12/2020 Signed Meeting Minutes 05/13/2021 Signed Meeting Minutes & Affidavit 08/12/2021 Signed Meeting Minutes & Affidavit 03/11/2021 Signed Meeting Minutes & Affidavit 06/10/2021 Signed Meeting Minutes & Affidavit 01/13/2022 Signed Meeting Minutes 02/10/2022 Signed Meeting Minutes & Affidavit Packet Pg. 1427 16.1.1.a 04/13/2022 Signed Meeting Minutes 06/09/2022 Signed Meeting Minutes & Affidavit 07/14/2022 Signed Meeting Minutes & Affidavit 2) Currents Community Development District: 08/12/2020 Signed Meeting Minutes 09/20/2019 Affidavit 09/11/2019 Signed Meeting Minutes & Election Official Ballot 09/11/2019 Signed Meeting Minutes & Various Affidavits 09/11/2019 Oaths of Office — John Wollard, Robert Summers, II, Ryan Futch, Timothy Martin 10/14/2019 Signed Meeting Minutes & Affidavit 05/13/2020 Signed Meeting Minutes 04/01/2020 Signed Meeting Minutes 07/08/2020 Signed Meeting Minutes 10/14/2020 Signed Meeting Minutes & Affidavit 02/10/2021 Signed Meeting Minutes 04/28/2021 Signed Meeting Minutes & Affidavit 06/09/2021 Signed Meeting Minutes & Affidavit 08/11/2021 Signed Meeting Minutes & Affidavit O1/12/2022 Signed Meeting Minutes & Oath of Office — Paul Zotter 05/11/2022 Signed Meeting Minutes 07/14/2022 Signed Meeting Minutes & Affidavit 08/04/2022 Signed Meeting Minutes & Affidavit 08/11/2022 Signed Meeting Minutes & Affidavit 3) Flow Way Community Development District: 11/11/2014 Signed Meeting Minutes & Affidavit O1/13/2015 Signed Meeting Minutes & Affidavit 02/10/2015 Signed Meeting Minutes 02/17/2015 Signed Meeting Minutes & Affidavit 05/12/2015 Signed Meeting Minutes 09/08/2015 Signed Meeting Minute & Affidavit 10/13/2015 Affidavit 10/27/2015 Signed Meeting Minutes 11/10/2015 Signed Meeting Minutes 12/01/2015 Signed Meeting Minutes 05/10/2016 Signed Meeting Minutes 07/12/2016 Signed Meeting Minutes 08/09/2016 Signed Meeting Minutes 10/18/2016 Signed Meeting Minutes 11/08/2016 Signed Meeting Minutes 11/22/2016 Signed Meeting Minutes & Affidavit 01/17/2017 Signed Meeting Minutes 02/21/2017 Affidavit 03/21/2017 Signed Meeting Minutes Packet Pg. 1428 16.1.1.a 04/25/2017 Signed Meeting Minutes & Affidavit 06/14/2017 Signed Meeting Minutes & Affidavit 09/05/2017 Signed Meeting Minutes & Affidavit 10/17/2017 Signed Meeting Minutes & Affidavit 10/25/2017 Signed Meeting Minutes & Affidavit 11/08/2017 Signed Meeting Minutes & Affidavit 11/29/2017 Signed Meeting Minutes & Affidavit 05/15/2018 Signed Meeting Minutes & Oath of Office — Adam Painter 05/21/2018 Affidavit 08/20/2018 Affidavit 09/18/2018 Signed Meeting Minutes 11/07/2018 Affidavit 12/18/2018 Signed Meeting Minutes & Affidavit 12/18/2018 Oath of Office — Andrew Miller 02/06/2019 Signed Meeting Minutes & Affidavit 03/19/2019 Signed Meeting Minutes 04/16/2019 Signed Meeting Minutes & Oath of Office — Timothy Martin 05/16/2019 Signed Meeting Minutes & Affidavit 06/20/2019 Signed Meeting Minutes & Affidavit 07/18/2019 Signed Meeting Minutes & Affidavit 07/25/2019 Signed Meeting Minutes 08/22/2019 Signed Meeting Minutes 09/19/2019 Affidavit 10/08/2019 Affidavit O1/21/2020 Signed Meeting Minutes 02/20/2020 Signed Meeting Minutes & Affidavit 04/16/2020 Signed Meeting Minutes & Staff Reports 05/21/2020 Signed Meeting Minutes 05/25/2020 Affidavit & Ordinance 07/16/2020 Signed Meeting Minutes & Affidavit 09/17/2020 Signed Meeting Minutes 10/13/2020 Affidavit 10/15/2020 Signed Meeting Minutes & Affidavit 11/19/2020 Signed Meeting Minutes 12/17/2020 Signed Meeting Minutes & Affidavit 01/21/2021 Affidavit 03/18/2021 Signed Meeting Minutes 04/15/2021 Signed Meeting Minutes 06/03/2021 Signed Meeting Minutes 06/17/2021 Signed Meeting Minutes 07/15/2021 Signed Meeting Minutes & Affidavit 09/16/2021 Signed Meeting Minutes 10/21/2021 Signed Meeting Minutes; Affidavit 11/18/2021 Signed Meeting Minutes 12/02/2021 Signed Meeting Minutes; Affidavit 12/16/2021 Signed Meeting Minutes Packet Pg. 1429 16.1.1.a 02/17/2022 Signed Meeting Minutes 03/17/2022 Signed Meeting Minutes 04/11/2022 Signed Meeting Minutes; Affidavit 04/21/2022 Signed Meeting Minutes 05/19/2022 Affidavit 05/25/2022 Affidavit 06/16/2022 Signed Meeting Minutes 06/22/2022 Signed Meeting Minutes 07/21/2022 Signed Meeting Minutes & Affidavit 09/04/2022 Affidavit 4) Landowner's Meeting Wentworth Estates Community Development District 11/11/2014 Signed Meeting Minutes 03/12/2015 Signed Meeting Minutes 05/10/2018 Signed Meeting Minutes; Affidavit & Oath of Office — Robert Kody 5) Fiddlers Creek Community Development District #2 Establishing a CDD Ordinance Packet 04/09/2019 Letter of Purpose from Coleman, Yovanovich, Koester, w/exhibits, Affidavit of Pre -Filed Testimony, Warranty Deed, Affidavit 6) Verona Walk Community Development District 05/19/2023 Proposed Fiscal Year 2023/2024 Budget (October 1, 2023 through September 30, 2024) A. OTHER: Packet Pg. 1430 w Irl I IN ON YOUR MOMENTUM Airport Management Consulting Services Collier County SOLICITATION 22-80S1 NOVEMBER 7, 2022 WCMT Crawford, Murphy & Tilly Section 1 Cover Letter/ Management Summary MICMT Collier County Airport Authority November 7, 2022 Procurement Services Division 3295 Tamiami Trail East, Building C-2 Naples, FL 34112 RE: SOLICITATION 22-8051: AIRPORT MANAGEMENT CONSULTING SERVICES Dear Collier County Airport Authority Selection Committee, Historically, it is difficult for General Aviation (GA) airports to generate and maintain positive long-term momentum. This is not the case for the airports led by the Collier County Airport Authority (CCAA), which includes three airports that are diverse in offered services, ranging from an industrial park to eco-tourism to red carpet service. However, they are not diverse in their common mission: To operate and develop these valuable, publicly owned assets for the benefit of the citizens and taxpayers — and to do so while keeping the environment, safety, security, and economy of the community front of mind. Finding a way to keep that positive momentum is critical. We know that you juggle numerous responsibilities daily, facing a host of challenges that all demand your attention. While capable of performing the requested scope of services with existing staff, we understand that becoming subject matter experts on a variety of airport business, revenue, and compliance -related tasks may not be the best use of your limited staffing resources. Bringing in a consul- tant team that offers CCAA staff access to various subject matter experts will allow staff to remain working on initiatives that maintain your positive momentum and ensure that the airports continue to be managed in a modern, effective manner. Asking how that consultant team can make your life easier is a valid question. At Crawford, Murphy & Tilly, Inc. (CMT), we have built a successful business based upon that very principle — offering peace of mind and making our clients' lives easier — and have proven that approach to airports around the nation for over 75 years. Benefits the CMT Team brings to CCAA includes: EXTENSION OF YOUR STAFF We believe that the word "partnership' is a perfect way to summarize our approach to working at similar airports to those managed by CCAA. We are here to serve you and to be an extension of your staff. Truly partnering with you — making your priorities our priorities — is what CMT strives to achieve with our clients. We strive to deliver solutions and value to our clients every day as a trusted advocate and partner. TECHNICAL EXPERTISE The CMT Team consists of a combination of industry -leading subconsultants and our in-house expert staff who share the specific goal of assisting CCAA in the continued management of various airport business, revenue, and compli- ance programs. The CMT Team is committed to providing the value -driven experience that comes with working with a team that combines large firm capabilities with small firm service. RESPONSIVENESS We believe in being available to our clients. We think about and are as concerned about your projects and initiatives as you are. Out of our 25 offices, CMT has three offices in Florida (Jacksonville, St. Petersburg, and La Belle). In addi- tion, two of our strategic partners is based (Naples) or has an office (Gainesville) in Florida. Knowing that a person cannot be available each moment of every day, we do commit to being present or available via phone or e-mail, text, or whatever means you prefer. Crawford, Murphy & Tilly Centered in Value 9500 Koger Boulevard, Suite 211 St. Petersburg, Florida 33702 PHON 844.426.8364 cmtengr.com EngineeB and Consultants Our team is led by Client Liaison David Long, AAE, who is based in our St. Petersburg office. Dave has over 30 years' experience precisely implementing the scope of services contemplated within your RFP at a medium hub and GA reliever Midwest airport system. The result: operating revenue increased 36% and non -aeronautical revenue amplified 47% under his leadership. Dave joined CMT nearly two years ago and has assisted CMT clients, including Brownsville (BRO), Boise (BOI), and Springfield -Branson (SGF) with a variety of revenue enhancement and financial initiatives. Dave offers CCAA the depth of airport management expertise gained at his previous employer combined with the breadth of consulting experience that comes from collaborating directly with staff at airports nationwide. Laura Sakach, PE, AICP, will support Dave in the day-to-day management of the project from our LaBelle office. With CMT for over 30 years in various airport roles, her expertise lies primarily in the environmental kingdom, which is understandably of significant importance to CCAA. Her role is to view and provide applicable recommendations through an eco-friendly lens. Assisting Dave and Laura will be four partner firms strategically selected for their specialized subject matter exper- tise: Capital Consulting Solutions, R.A. Wiedemann & Associates, Unison Consulting, Inc., and Silvy Group. Capital Consulting Solutions is a Collier County (Naples) based DBE/MBE/SBE firm currently working with Collier County on numerous projects. R.A. Wiedemann & Associates is a national leader in airport business planning and financial and economic services. Unison is a certified DBE firm specializing in airport financial services with a client list ranging from GA to large hub airports. Silvy Group is an award -winning industry leader in developing DBE goals and objectives programs. CMT has partnered with these firms on numerous past projects and maintains extraordinarily strong working relationships. CCAA will benefit from our team's familiarity with one another, industry leading expertise, and shared values of cost efficiency and technical excellence. We are committed to offering the time, attention, and ingenuity necessary to successfully assist CCAA with the manage- ment of various financial and compliance programs. Airport owners like CCAA have selected CMT repeatedly for our experience, dedicated service, innovative solutions, devoted team approach, and our overall partner philosophy. Mostly, clients choose CMT for our over 75-year commitment to maximizing the value of our clients' investments. We are ready to engage and get to work. We look forward to your favorable consideration. Crawford, Murphy & Tilly Sincerely, David Graham Long, AAE, MBA Airport Advocate & Authorized Contact dlong@cmtengr.com 816.719.0519 cell 1 727.767.9759 office Centered in Value 9500 Koger Boulevard, Suite 211 St. Petersburg, Florida 33702 PHON 844.426.8364 cmtengr.com EngineeB and Consultants Section 2 Certified Woman and/or Minority Business Enterprise D/M/W/SBE Commitment CMT has a well -established history of working with DBE, M/WBE, and SBE firms and is committed to providing opportu- nities for meaningful participation to allow these partner firms to expand their skills and more effectively compete in the marketplace. CMT leadership recognizes the importance of building strong relationships with our fellow Partners and the efficiencies that come from strong, established working relationships. Unison is DBE, MBE, and SBE certified in multiple jurisdictions. Capital Consultant Solutions is a Collier County business and a certified DBE, MBE, and SBE business. Certifications can be found on the following pages. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES 0 ■ rR =2 D — } —droll 46 ON y L C e� H _ 615 fl � � 4 —P 391 K � ~ r a i COLLIER COUN- FDOT ]miss&= - Z� aF pmuumm pa cfful3um nmwwmmw, n mmwom tea" Jify 12.21122 Ada AfimacL Mmmgi'ig Nkm*er CAPITAL CONSUL-TING SCLUTONS LLO_ 91o Sbn& 5tol OMFk SA-10 10B Nivkmti Ronda 34109 Dear Mr Ahmm± The Florida Deparhnerit of Trarispmtmtinn fins rerrierred ycw app5mlion for prequRffcmbm Page and dffkmme5d that the chta srbniitLed is ackq.ia a is technksly prequaify yaiir firm for the rdkF■i ng types of work G up 3 - Hfi9WARY Deakffl - Roudmy 3.1 - Minor Higfrr■W Deter Group 0 - Traffic Engmeenng and OpeFuRm 6.1 - Tr�ic Errfineering 5;hafiea 62 - Traffic Signal Trrririg fi-al - Irtfditgert Twqpmbffm S irs AiiWss and Design Group 7 - Traffic Operates Design 7.1 - Signing. Pa+rerrmd Nkddg g ard Ofw Lmbm Group 10 - Cb7&ucbm wig Inspecbmi 10.1 - Romtmy Union Ong inapetdian Group 13 - Rmm m g 13.4 - Sins Plomitig 13.5 - Submea0miclor Pimning 13.6 - Land PfannhWF-Inglneerft Yarn firm is now ie mil} pre4raliied with the Depmtrrimd for Prdbgs riot Services n to abowr referenced wwk types_ Your firm nab pu um pFcomb in the Feterenced work types wth fees eshmak!d at leas flan 35DD.0M (M * Tfs zkkm sisal be YRW until Ji#t 1Z 3. for mr& ctir g pmpmtma- *Lind for FDOT prajes only COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES mid ym hmm aFFiF 4msbmpk� fed free tD oQftd me by IIII ot cmlisyn_kml&&l tshdr-f m or by phone at ff5W41_ SinoeFy, l000r Pruresminnal Sen*zs Quaifkzbm Adrriniabubr COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Section 3 Business Plan OUR CUSTOMER -CENTRIC APPROACH CMT's ability to deliver quality projects for our airport clients in a timely manner over the past 75+ years is the result of our commitment to exceptional customer service and reliability. ASSURING TEAM AVAILABILITY WITH CMT offers . deep bench DEDICATION TO RESPONSIVENESS and . level .stability that's unparalleled within the CMT's resume includes over 200 airports ranging from the largest hubs to well over 130 GA and reliever facilities. CMT offers its aviation clients the insight of a highly focused group of 95+ dedicated aviation professionals. Creative approaches, backed 5 3 0-9 years at CMT with decades of experience, deliver value in performance and results. To us, a genuine customer -centric approach means an uncommon level of investment in client goals 10-19 years at CMT 19 and success. CMT's national reputation is established by the work it has performed at airports throughout the country and exemplified in our recognition as a top provider of aviation services. 13 20-29 years at CMT PERSONALIZED SERVICE BACKED BY EXPANSIVE STAFF We believe in being available for our clients. CMT is used to getting requests for quick 30+ years at CMT 1 O turnaround assignments. Your priorities become our priorities. Furthermore, we have a deep bench of talented staff and subconsultants who understand your demand for 2m7% CMT 5-year responsiveness and "need it now" support. We also offer web -based project collabo- ration that efficiency, information distribution and communi- Turnover Rate platforms promote project cation among internal and external team members. From field to finish, CMT's equip- ment and infrastructure brings a high level of security and efficient communication and collaboration between offices, clients and subconsultants. Under Dave's project leadership, staff can "mobilize" for a task's scope of work within 48 hours or less of receiving a Notice to Proceed. Although our workload admit- tedly fluctuates routinely and will continue to do so over the life of this contract, our ability to balance this workload is due to the flexibility of our staff and subconsul- tants and the internal systems and processes in place to facilitate project production among personnel. Rotating doors of personnel are all too common in the airport consulting business. Over a multi -year program, the risk increases that the people you start with may not be with you at the end. This can be costly to airport clients, as the knowledge is lost, and the benefits of a shared partnership can't be realized. With CMT, you can have confi- dence that the same people will work with you throughout the life of the selection. This is because we have a culture that rewards our high -performing employees. Out of the 95 aviation professionals, the 5-year turnover rate is only 2.7%. This low turnover rate allows us to commit the same individuals over the life of long-term contracts and results in a seamless quality deliverable to our clients that they have come to expect. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES SETTING SCHEDULES & MILESTONES The whole premise around assembling this team is to provide CCAA with a choice of subject matter experts that best meets your immediate needs in providing you the information that is required in a timeline that you desire. "On -Demand" services is just that — On Demand! With the experts that you help choose. When CCAA reaches out to CMT, we will collaborate to determine scope of work and who will best be utilized to provide CCAA with the confidence that the analysis and recommendation will be accurate, reliable, and achievable. CMT will create a Management Plan that establishes project milestones (schedule) at the outset, garnering agreement on production, submittals, cost estimating, communication requirements, etc. We will update and distribute schedules to monitor and adapt the process throughout the assignment. A quality implemented and managed Management Plan achieves the following: ■ Clarifies Roles & Responsibilities — Everyone knows what they and everyone else is supposed to do. ■ Divides the Work — Divides the work into reasonable and equitable ways, so that everyone's job is not only defined, but feasible. ■ Increases Accountability - When tasks and duties are determined, people can be easily accounted for. ■ Appropriate Assignment - Ensures that necessary tasks are assigned to the appropriate staff and creates a time schedule to get them accomplished. ■ Your Trusted Partner — when the Management Plan is properly applied, a trusted partner emerges as an extension of your staff. HIV WVII 1� 1:14billN4 Schedule from the LEX Master Plan and Business Plan. As part of this submission, we offer the Lee's Summit Municipal Airport 2021 Business Plan. CMT and R.A. Wiedemann & Associates collaborated on this effort. The Business Plan specifically considered several components, including the Airport's competitive setting, the highest and best use of Airport property, the attraction of new corporate aviation, the potential for hangar develop- ment, the high growth of the City of Lee's Summit, and the opportunity of the Sponsor to examine the Airport branding and marketing program. The Business Plan detailed: ■ Management Structure and Future Needs ■ Airport Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis ■ Airport Market Analysis & Rates and Charges ■ Baseline Financial Projections ■ Revenue Enhancement Options ■ Recommended Plan and Proformas ■ Airport Lease Analyses This Business Plan was conducted concurrently with the Airport's Master Plan. As such, both plan- ning efforts benefited from coordinating findings, forecasts, and strategic recommendations. Many of the key topics within your detailed scope of work was contemplated within this business plan. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Section 4 Cost of Services CRAWFORD, MURPHY & TILLY, INC. STANDARD SCHEDULE OF HOURLY CHARGES JANUARY 1, 2022 Classification Regular Rate Principal $ 245 Project Engineer II Project Architect II $ 235 Project Manager II Project Environmental Scientist II Project Engineer I Project Architect I Project Manager 1 $ 205 Project Environmental Scientist I Project Structural Engineer I Sr. Structural Engineer 11 $ 190 Sr. Architect 11 Sr. Technician 11 $ 170 Aerial Mapping Specialist $ 165 Sr. Engineer I Sr. Architect 1 $ 165 Sr. Structural Engineer I Land Surveyor Technical Manager II $ 150 Environmental Scientist III Sr. Technician 1 $ 145 Sr. Planner I GIS Specialist Engineer 1 $ 145 Architect I Structural Engineer I Environmental Scientist 11 $ 125 Technician II Planner I Technical Manager I Environmental Scientist 1 $ 105 Technician I Project Administrative Assistant Administrative/Accounting Assistant $ 70 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Section S Experience and Capacity of the Firm Founded in 1946, CMT is a nationally -ranked professional company C M T providing planning, engineering and construction services to both the public and private sector. CMT and its 400+ employees provides leadership Crawford, Murphy & Tilly in civil infrastructure by leveraging shared knowledge, staff longevity, and unique insights. For more than 75 years, the employee -owned corporation has sustained INDUSTRY RECOGNITION a trademark level of service and commitment to clients that translate into long - term relationships and enhanced value to our clients' projects. MID ST DESIGN FIRMOFTHEYEAR Aviation Expertise — Enaineerina News Record — INSIGHT. PERFORMANCE. INVESTMENT. RECIPIENT OF THE A AAAE CORPORATE CUP OF EXCELLENCE 2022 TOP 25 IN AIRPORT DESIGN Engineering News -Record BUSINESS ORGANIZATION Established: 1946 Offices: 25 in 9 states Staff Size: 400+ Aviation -Focused Staff: 100+ FLORIDA OFFICES Jacksonville, LaBelle, St. Petersburg Jac1l1.`onville'Q Petersburg T Labelle CCA From primary large hub airports to general aviation facilities, CMT offers its clients the insight of a highly focused group of nearly 100 dedicated aviation professionals. Creative approaches, - -- backed by decades of experience, deliver value in performance and results. A genuine, customer -centric-? ; _"- approach means an uncommon level - of investment in client goals and success. CMT's national reputation is �. established by the work it has performed at civilian and military airports CMT's aviation experience encompasses the full range of airfields throughout the count and exemplified g country P across the country. in our recognition as a top provider of aviation services. COMPREHENSIVE RANGE OF SERVICES ■ Design and Construction Engineering ■ Air Service Development ■ Planning ■ Architectural Services ■ Runway Incursion Mitigation Solutions ■ Environmental Services ■ Noise Compatibility ■ Noise Modeling ■ Program Development ■ Funding Assistance ■ Regulatory Coordination & Compliance ■ Program Management ■ Economic/Site Development ■ Land Acquisition Services ■ Electrical/NAVAIDs ■ Structural Engineering ■ Pavement Management Studies ■ Fueling Facilities ■ Security Services ■ Technology/Geographic Information Systems (GIS) ■ Value Engineering ■ Stormwater Management COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Experience & Ability AVIATION PLANNING CMT's dedicated Aviation Planning Group consists of profes- sionals from varied backgrounds, including airport manage- ment, engineering, planning, environmental and technology that work exclusively on airport planning related initiatives. With CMT, you have the resources to help navigate your airport leadership through strategic decisions and vision. In addition, as a full -service firm, our Aviation Planning team understands the need to balance airfield priorities and busi- ness priorities. Our team helps bridge the gap by providing a comprehensive assessment of revenue streams and business opportunities that become actionable modifications or infra- structure projects. BUSINESS PLANNING EXPERTISE The CMT Team brings a wealth of professional talent and experience to the airport management team. We pride ourselves on bringing new ideas and experience from other airport facilities across the nation to our clients. We employ industry accredited airport professionals who bring a wide variety of technical expertise as well as business planning to support your airport's economic growth and sustainability as it develops and rehabilitates its infrastructure. Our professionals leverage significant years of airport management experience to establish sound business principles that will maximize profitability while creating a positive business climate for airport clients. A decision -making framework is provided to facilitate long-term development and short-term implementa- tion. The result is a plan that embodies the strategic goals of the airport while providing flexibility to respond to changing market conditions MANAGEMENT COMPLIANCE DOCUMENTS We assist clients with their Primary Management Compliance Documents which play an important role in the development, THE "A" TEAM IS ON BOARD operation, and management of an airport by outlining appli- cable policies, standards, and guidelines, designed to: ■ Ensure the long-term financial health of an airport ■ Facilitate the orderly development of an airport ■ Ensure the provision of quality aviation products, services, and facilities at an airport ■ Protect the health, safety, interest, and general welfare of the public INTEGRATED PLANNING FOR AERONAUTICAL & NON -AERONAUTICAL RELATED ECONOMIC DEVELOPMENT Our Team has led several planning projects focused specif- ically on the integration of aviation and land use planning for economic development to include aeronautical and non -aeronautical development. Each of these projects involved coordinating airport planning initiatives with local economic development stakeholders including economic development corporations, local developers, universities, local business, governmental officials, and community leaders. CMT brings a multi -discipline approach that employs aviation and land use planning, economic development, marketing expertise, and civil engineering to deliver a road map for implementation and marketing. FUNDING FORMATION AND PROGRAMMING CMT aviation staff are recognized for their ability to assist clients in successfully navigating the competitive funding environment. Through innovative programming, justification documentation, and funding approaches, we create increased awareness of their projects as they progress from concept to reality. Attitude is Contagious. The CMT team is comprised of trusted subconsultants that have a solid track record of performance on past projects. You will be receiving the trademark traits of creativity and tenacity to seek out the best solution that matches your situation. And because this project is of such strategic value to us, we are bringing our "A Team." Our team has been strategically assembled to meet your goals and objectives and is structured for adaptability. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES PROVEN PARTNER FIRMS Capital Consulting Solutions Capital Consulting Solutions is certified as a Disadvantage Business Enterprise, Minority Business 1� ! Enterprise, and Small Business Enterprise business. With Capital's headquarters in Naples, Florida, they bring value in providing planning, engineering, construction, local public knowledge with permitting, CAPITAL grant writing, and utility coordination. Capital Consulting Solutions have extensive local relationships with pertinent agencies, and regulatory groups such as the Florida Department of Transportation, US Army Corps of Engineers, South Florida Water Management District, Collier County, Lee County, City of Bonita Springs, City of Naples, City of Fort Myers, Seminole Tribe of Florida, Babcock Ranch Special Independent District, and the City of Fort Myers. Currently Capital Consulting Services is providing Design and General Contracting Services for Collier County. To date, Capital Consulting Services has successfully completed over 116 Design -Build projects on behalf of Collier County. ,;;p Y, NISON CONSULTING SILVY GROUP 1-1 IR.A. Wiedemann & Associates, Inc. AVIATION CONSULTANTS Unison Consulting, Inc. Celebrating 31 years as an industry -leading aviation consultancy, Unison has provided airport manage- ment expertise services to airport clients, large and small, throughout the United States, Canada, South America, and the Caribbean. Unison is a prominent airport consulting firm whose focus is on improving airport operations and profitability. Unison offers services in the following major practice areas: Airport Finance and Economics, Airport Retail Concessions Planning and Management, Information Systems, Program Management and Control Services, Passenger, Market and Industry Research and Surveys. The firm has completed well over 500 engagements for more than 100 client airports. Due to our exper- tise and our focus on excellence, Unison forges long-term relationships with many of our clients, and has served most of the major airports in the nation. Unison's professional consultants are well-known experts with over 150 years of industry expertise. Prior to forming Unison in 1989, the firm's founding members held senior positions at leading airports, with airlines, the FAA, and other national aviation consulting firms. Unison is DBE, MBE, and SBE certified in multiple jurisdictions. Silvy Group Silvy Group was formed by Bob Silvas in 2014 after a 25-year career at San Diego International Airport. He specializes in concession programs, evaluating inclusionary practices, developing required programs to assure compliance with DOT regulations including DBE, ACDBE and Title VI require- ments. Bob has participated in compliance reviews, stakeholder meetings with the FAA for proposed rulemaking and guidance. He is considered an industry leader having served two terms as chair of the Airport Council International of North America (ACI-NA) Business Diversity Committee and was on the Board of Directors for Airport Minority Advisory Council (AMAC). Bob has been recognized for his dedi- cation multiple times over the years including ACI-NA Inclusionary Champion Award (Inaugural) and the AMAC Airport Architecture, Engineering and Construction Award (Individual Award). R.A. Wiedemann & Associates, Inc. R.A. Wiedemann & Associates (RAWA) is a leading edge, high quality, specialized firm devoted to airport business planning, airport master planning and site selection, aviation marketing and branding, and economic impact analyses. Its principal, Randal Wiedemann has been involved in aviation plan- ning since 1975, participating in over 1 10 Airport Master Planning projects and more than 95 Airport Business Plans across the U.S. Of these business plans, 18 were undertaken as a part of Airport Master Planning studies. In recent years, Airport Business Plans/Financial Planning has become a niche specialty of the firm. As such, RAWA has completed more formal airport business plans than any other firm in the nation. In addition, there are competitive positioning and branding/marketing program recommendations in every business plan. Our depth of experience at other airports permits us to quickly assess issues, diagnose problems, and find innovative solutions. This includes new methods of increasing revenue production, expanding the Airport/FBO's brand, and helping stakeholders under- stand the value of the Airport to the community. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES ORGANIZED FOR PERFORMANCE While CMT, like many other firms, has our roots planted in traditional engineering and consulting services, we understand that the future will require more than just traditional project delivery expertise if airports like those managed by CCAA are to be successful in increasing non -aeronautical and aeronautical revenues to not only diversify, but to create a sustainable business model in an environment that has threatened air travel. To ensure this success, our proposed team leverages subject matter expertise from across CMT and our partners. Laura Sakach, PE, AICP, and David Long, AAE, will lead the team. Laura offers decades of experience in the aviation planning sector. Dave prefers the title of "Airport Advocate" because for more than 30 years Dave was a senior executive at a small and medium hub commercial airport and GA reliever. He introduced sound business philosophies with respect to fee structure, property valuations, FBO, concessions, airport real estate, and other operational programs that resulted in a substantial increase to both aeronautical and non -aeronautical revenue. To round out the CMT participants, Doug Gregory, CM, Andy Bodine, CM, and Lana Sumner, AICP will assist with rules & regulations, capital funding, AIP, FDOT, operational support programs, and DBE program. Don Arthur and Brian Drake with Unison Consulting, Inc., will be concentrating on aeronautical and non -aeronautical valuations, FBO, fee structures, capital funding, hangar leases, and concessions. Randal Wiedemann and Seth Wiedemann with R.A. Wiedemann & Associates will focus on aeronautical and non -aeronautical valuations, rules & regulations, FBO, fee structure, hangar leases, operational support programs, and concessions. Adam Ahmad, PE, of Capital Consulting Solutions will advise with FDOT grant support, operational support programs, exotic vegetation maintenance, SPCC plans, and hurricane response. These experts can perform all items identified within the RFP's detailed scope of work. CCAA will benefit from our team's famil- iarity with one another, industry leading expertise, and shared values of cost efficiency and technical excellence. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES CMT Years' Experience: 31 Education: MBA, Webster University, 1999 BS, Airway Science Management, Kent State University, 1989 Registrations: Accredited Airport Executive, American Association of Airport Executives (AAAE) Missouri Certified Residential Real Estate Appraiser Missouri Real Estate Salepserson Navy Aviation Boatswain Mate Petty Officer 2nd Class Private Pilot, Single Engine Land FDOT - Florida Aviation Professionals Academy Certificate DAV I D LONG, AA E Client Liaison Dave is a Pilot, Veteran, and a seasoned accredited airport executive with extensive experience in airport management within a municipally owned and operated airport environment. With more than 30 years in the aviation industry, Dave understands the responsibility of being an Airport Sponsor and the variety of needs they balance daily. He is skilled at building consensus throughout the governance and political process, maximizing, and creating aeronautical and non -aeronautical revenue, airline/rental car negotiations, airport operations, lease management, master planning and organizational management. Dave has a strong background in facility design, construction, and budgeting and experience developing and participating in community awareness programs. His passion is building relationships by promoting an attractive and profitable commercial center by maintaining and encouraging a business -friendly climate with current and future tenants/ partners, while enhancing the overall customer experience and ultimately improving airport operating revenue. Experience Prior to CMT: Kansas City Aviation Department, MO Deputy Director of Properties & Commercial Development Dave served in various roles during 25+ years with the Kansas City Aviation Department. As Deputy Director and Airport Lead Negotiator, he administered risk management, property acquisition and 200+ commercial leases, airline, parking, concessions, rental cars, etc., generating $130 million annually. Kansas City International Airport (MCI), MO New Passenger Terminal Dave led efforts to procure and negotiate a Design -Build Contract to construct a $1.5B new consolidated single 39-gate terminal and 6,300-space parking garage at MCI, opening March 2023. Dave negotiated the new residual airline use and lease agreement that enabled a collaborative, working partnership between the airlines and the airport, with the goal of defining a preferred terminal alternative by examining the possibility of either a major renovation of the existing terminals or building a completely new single terminal. A new single terminal was chosen. The agreement secured the funding and detailed the business arrangement approving of the new terminal with 94% of the airlines (measured by enplanements) executing the nearly 10-year agreement. Commercial Development As part of the economic challenges developing on -airport property (property tax confusion, leasehold interest, etc.), David successfully altered Missouri legislature that encourages development at FAR Part 139 Airports. David led the Environmental Assessment and overall development of an 800-acre KCI Intermodal BusinessCentre planned industrial park. To date nearly 3 million SF have been built creating 800+ jobs. Dave secured a competitive secondary FBO (MKC) whereby that FBO was awarded the top 10 FBO In North America. Dave was also creative in repurposing the outdated underutilized terminal space at MKC — negotiating a 13-year single tenant lease and converted the 100,000 SF into a modern office complex employing 650+. Through the bankruptcy of American Airlines, AA choose to abandon their 1.7 million SF Overhaul Base. Within two years, David secured multiple tenants, fully leasing the facility, and saving or creating hundreds of jobs. David was instrumental in negotiating rental car agreements that resulted in construction of a consolidated RAC Facility. The result of these projects, and others, was that operating revenue increased 36% and non -aeronautical revenue amplified 47%. Boise (BOI), Springfield (SGF) & Brownsville (BRO) As a member of the CMT Team, Dave assisted these airports at various levels to provide his lessons learned experiences applied to topics such as — distinct actions necessary to create a successful industrial park from airport due diligence all the way to contract negotiation, analysis of cargo operations/lease administration, relocation of cargo tenants, and rates and charges and detail contract structure analysis and best business practices to implement to increase operating revenue. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES CMT Years' Experience: 33 Education: BS Civil Engineering, University of Missouri -Rolla, 1989 Professional Registration: Professional Engineer - FL Certified Planner - American Institute of Certified Planners LAURA SAKACH, PE, AICP Project Principal Laura has been with CMT since 1989 and currently manages CMT's Office in LaBelle, Florida. With over 33 years of focused experience in the management of NEPA processes for airport and transportation projects, Laura is CMT's practice leader for environmental projects. Throughout her career at CMT, Laura has also had significant experience with public involvement activities, agency coordination, technical writing, and project management. Most recently, Laura has been engaged in extensive planning tasks for the Airglades privatization initiative. Airglades Airport, Hendry County, FL Perishable Air Cargo Complex Laura worked on a day-to-day basis with leadership from Airglades International Airport, Inc. (AIA), Hendry County's selected Private Developer for the Proposed Airglades Perishable Air Cargo Complex. In this role, she attended weekly AIA Project Manage- ment Meetings, participates in FAA coordina- tion and stakeholder engagement activities, and provided a key role in compiling the Airglades Airport Privatization Pilot Program (APPP) Final Application for FAA's review and approval. Laura also served as CMT's Environmental Lead on an EA for the proposed develop- ment of a Perishable Air Cargo Complex at Airglades International Airport. This project is being developed under the FAA's Airport Investment Partnership Program (formerly Airport Privatization Pilot Program). CMT is currently serving as the proposed Private Developer's Planning Consultant. CMT's role as a subconsultant on the EA included development of the purpose and need statement, alternatives analyses, aviation forecasts, and noise impact analysis. Laura is also leading a team of subconsultants that are securing the various federal, state and local permits required for the proposed airport improvements. O'Hare International Airport, Chicago, IL O'Hare Modernization Program As Deputy Project Manager for the EIS for the O'Hare Modernization Program, Laura served as FAA Liaison and coordinated a team of nationwide consultants that assisted the FAA in the processing and preparation of the EIS, which addressed the $7.5 billion plan to reconfigure the airport. Laura worked side -by -side with the FAA to provide tech- nical reviews of the voluminous amounts of data that the EIS process created. Specific resource impacts that she had a key role in assessing included social impacts, environ- mental justice analysis, Section 4(f) Evalu- ation, cumulative impacts, and mitigation. Laura also played a key role in the agency coordination and public outreach activities during the EIS process. (quad Cities International Airport, Moline, IL Environmental Assessment Project Manager for an Environmental Assessment to remediate significant areas of standing water that attract wildlife to the airport. Located adjacent to the Rock River and confluence of Mississippi River, Quad City Int'I has been challenged to develop solutions for significant areas of standing water. The EA included analysis of multiple alternatives to address the wildlife hazard attractants. Significant coordination was also conducted with the U.S. Army Corps of Engineers to address impacts to wetlands and waters of the U.S. and options for remediation. CMT also prepared the neces- sary permit documentation and concep- tual site selection and mitigation plans for compliance with Section 404 of the Clean Water Act. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES DOUG GREGORY, CM Capital & Grant Support Doug is CMT's Group Manager of h Aviation Planning. He brings 18 years of experience as lead planner and project manager for a wide range of client initiatives and oversees consulting efforts for benefit -cost, asset management, land acquisition, and more. He is highly proficient in the use of FAA maintained databases, OAG databases, and Bureau of Transportation (BTS) resources and adept at analysis through applicable forecasting methodologies including regression analysis, market share, O&D analysis, trend projections, and airline strategy scenarios. Doug has developed internal data analysis tools along with innovative database applications used by airport clients for airport management purposes. He is also skilled in the development and review of aviation forecasts at a wide range of airports, and his expertise includes developing internal data analysis tools, along with innovative database applications, used by airport clients for airport management purposes. Education: BS Aeronautical Sciences, Embry -Riddle Aeronautical University Certifications: Certified Member, American Association of Airport Executives LANA SUMNER, AICP DBE Program Development & Implementation " Lana Sumner brings 27 years of environmental planning and regulatory compliance experience. Lana focuses on the preparation of documents under the NEPA and has assisted numerous CMT clients on DBE program development. She is an environmental lead and CMT's primary noise analyst with experience on over 120 projects for which she prepared transportation -related environmental documents. Education: AS Aeronautics, Parks College of St. Louis University Certifications: Certified Planner. American Institute of Certified Planners 4 ANDY BODINE, PE, CM Operational Support Programs Andrew is a Senior Aviation Planner responsible for the planning and design of a wide range of commercial and general aviation projects. He has served as the Lead Design Engineer, Planner, and Resident Engineer for various projects including runways, taxiway reconstructions, aircraft parking apron reconfigurations and expansions, gate optimization studies, aviation demand projections, and landside roadway and parking improvements. Andy brings a unique combination of both airport and roadway expertise having served as an aviation consultant with CMT and as a traffic engineer for a large community. Education: BS Civil Engineering, Missouri University of Science and Technology Certifications: Professional Engineer; Certified Member, American Association of Airport Executives COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES CAPITAL N Education B.S., Civil Engineering University of Kansas Certification FL Professional Engineer Lic#: 72472 Professional Planner AICP No.: 028767 Florida General Contractor Lic#: 1525246 DOT/FAA Airman Certificate UAS 3999943 FDOT Advanced TTC: 28347 Specialization Transportation Planning - Traffic Engineering - Highway Design - Utility Design - Design -Build - Project Management Signalization Design- Signing & Striping - Maintenance of Traffic - Drainage Design - P D & E - Utility Coordination Pavement Design - FDOT Permitting - County Permitting - Environmental Permittin - Adam Ahmad PE, AICP, CGC — Construction Manager Relative Experience Profile: Adam has been the Lead Construction Manager on numerous projects for Collier County. With over 15 years of comprehensive experience encompassing all phases of design, planning and construction projects. He is well versed in project estimating, project scheduling per critical path, quality management, team building, training, cost control, problem recognition, evaluation and solving. Adam has a long successful history of working with the proposed team for this project. Collier County Clam Pass Park Facility Repairs — Lead Construction Manager. Collier County's Clam Pass Concession Building sustained fire damage on February 09, 2021. Some emergency and temporary repairs were made immediately after the event to make the building safe and remove much of the fire damaged materials. Adam was lead construction manager for the project, working alongside Ron, and was responsible to fully restore the facility to its pre -fire condition. Scope for the project includes all necessary demolition, removal, replacement, construction, permitting, coordination, complete electrical wiring replacement and cleaning to provide a fully completed space ready to occupy and operate out of. Construction Manager, Bus Stop Improvements to Achieve ADA Compliance; Collier County, Florida. Adam was the lead construction manager for this project. The project consisted of site modifications required to bring 33 bus stops located along the state highway system in Collier County up to ADA compliance. Conducted the pre -construction meeting. Provided contract document interpretation in addressing request for information, field visits, review of and assist in field changes. Construction Inspection g Collier County Sun and Fun Lagoon Resurface Business Development Proposal Splash Pad — Construction Manager. The Writing - Plan project consisted of repairs to leaks in the Slide Preparation/Production - Pool sump basins and slide terminus and in the Computer Drafting - underground IWF tanks sump basins at the Sun- Constructability Review N-Fun Water Park facility at North Collier Construction Administration - Regional Park. Upon completion of the repairs, Budgeting/Estimating - Specifications Development the slide pool is to be resurfaced and all tiles, depth markers, and damaged railings, floor 77 D ' 4, Zinfo@capitalengr.com Suite 0:EL Capitalengr.com Naples, Florida T•m return caps, lighting, etc. replaced. Adam was the construction manager on the project and provided coordination throughout construction and completed the project in a timely manner and within the budget provided. Roberts Ranch House Stabilization and Rehabilitation Project —Construction Manager. For this Project, working with Roger, Adam was responsible for structurally stabilizing and rehabilitation of the historical 20' century cattle ranch in Immokalee, Florida. The project involved rehabilitating the foundation work and anchoring the building and complete renovation of the interior and exterior of the structure utilizing federal grant funds. With his construction management experience and skills, Roger coordinated all trades that were involve with the project to be completed on time and within budget. Collier County Design/Build Construction Wilson Blvd Bus Shelter — Construction Manager. On this project, Adam worked was the construction manager on the project and was provided coordination with the subcontractors to ensure that the bus shelter met the engineering plans. With Adam construction management skills, the project was completed on time and within budget. Collier County GMD Office Space Renovations — Construction Manager. The scope of the project consists of the alteration of existing office space and the creation of new office space within the Zoning area. Project to be done after hours and on weekends. Construction is to be coordinated closely with GMD staff. With coordination with Roger, the construction manager, the project was successfully completed with no issues arising. CAPi'� COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES SILVY GROUP Years' Experience: 30+ Education: BA, Humbolt State University, 1979 BOB SILVAS Silvy Group President Silvy Group is a consulting firm started by Bob Silvas in 2014 after a 25-year career at San Diego International Airport (SAN). He specializes in concession programs, evaluating inclusionary practices, developing required programs to assure compliance with DOT regulations including DBE, ACDBE and Title A requirements. Bob has participated in compliance reviews, stakeholder meetings with the FAA for proposed role making and guidance. Bob has had a stellar career with 30 plus years of experience in the airport industry. While at SAN, he was responsible for airline affairs, land leases, managed the entire concession program and retired as the Director of Small Business Development. During his ten years heading up SAN's small business program, he acted as the DBE & ACDBE Liaison Officer and was the architect for SAN's award -winning inclusionary approach. Recognition includes the following: ■ 2013 — Airport Council International of North America (ACI-NA) Inclusionary Champion Award (Inaugural) ■ 2013 — Airport Minority Advisory Council (AMAC) Airport Architecture, Engineering and Construction Award (Individual Award) ■ 2012 - San Diego Metropolitan Magazine as 2012 "Metro Mover" (Individual Recognition) ■ 2011 — Federal Aviation Administration (FAA) Disadvantaged Business Enterprise (DBE) Advocate of the Year (Airport) ■ 2011 — Procurement Advocate of the Year from the San Diego Hispanic Chamber of Commerce (Airport) ■ 2010 — Airport Minority Advisory Council (AMAC) Award of the Organization (Airport) ■ 2010 — Special Award for Outstanding Contribution by the American Subcontracting Association of San Diego (Airport) ■ 2005 — Innovation in Outreach by the San Diego Supplier Development Council (Airport) ■ 2004 — Best Small Business Outreach Event/Series by the San Diego Supplier Development Council (Airport) He is considered an industry leader having served two terms as chair of the ACI NA Business Diversity Committee and was on the Board of Directors for AMAC. In addition, he has spoken on the topic of inclusion for national and international conferences including ACI-NA, American Association of Airport Executives (AAAE), AMAC San Diego County Regional Airport Authority Developed an availability assessment for SAN New Terminal 1 concession program and is an on -call advisor for ACDBE matters (Active). Kansas City Aviation Department, MO Developed an availability assessment for MCI food/beverage and retail concession program that was used as the supporting document for an ACDBE goal. Created good faith effort (GFE) workbook to allow MCI staff to evaluate proposals and determine ACDBE participation levels. Performed contract goal assessment for MCI advertising concession and developed race/ gender neutral approach consistent with ACDBE regulations and FAA guidelines. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES ,y &NISON CONSULTING CORE COMPETENCIES Financial Feasibility Studies Rates and Charges Modeling Lease Negotiations PFC Applications and Amendment Applications Benchmark and Best Practice Research Studies Non-traditional Funding Methods Identification and Implementation , Master Plan Development (Finance Section) Financial Modeling for Special Projects EDUCATION / TRAINING EXPERIENCE: . M.B.A., concentration in Finance and Strategic 12 Years Management, Purdue University • B.A., Finance, Howard University QUALIFICATIONS Brian Drake brings 11+ years of finance experience to the firm's Airport Finance and Economic Practice. Brian also offers expertise in complex financial modeling and is adept at various forecasting techniques including sensitivity analysis of operating and capital budgets, as well as evaluating financial support for issuing bonds. Recent projects include Feasibility Studies, Rates and Charges and Lease Negotiations and New PFC applications and Amendment Applications. He has also completed the financial section for master plans at multiple airports, as well as various other types of financial modeling for special projects. Mr. Drake has also participated in industry benchmark and best practice research studies for U.S. airports. He performed research and compiled detailed results to determine and implement non-traditional funding methods for capital projects. Prior to joining Unison, Brian worked for BP as a Global Gasoline Trade Financial Control Analyst and a Financial Portfolio Advisor. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES 97 IyULTINGSON CONS CORE COMPETENCIES Financial Feasibility Studies in Support of General Airport Revenue Bonds and PFC-backed Bonds Funding Plans for Airport Master Plans and Capital Improvement Programs Airport Rental Car Facility Analyses and Studies, including Analyses of Concession Agreements and Special Facilities Leases, and Financial Feasibility Studies in Support of Customer Facility Charge (CFC) Backed Bonds Public Parking Demand Analyses, including Financial Analyses of Planned Public Parking Facilities Airline Rates and Charges Analyses and Negotiations I Airport Improvement Program (AIP) and Passenger Facility Charge (PFC) Funding Analyses PFC and Letter Of Intent (LOI) Applications Bond Continuing Disclosure Reports EDUCATION / TRAINING EXPERIENCE: . M.B.A., University of California, Irvine 30 Years • B.S. in business administration with a major in accounting, California State University, Long Beach • Certified Public Accountant, State of Illinois QUALIFICATIONS Mr. Arthur has more than 30 years of business experience in accounting and financial analysis, including 26 years in airport finance. Having worked as both an aviation consultant and an airport executive, Mr. Arthur is familiar with all aspects of airport finance. Mr. Arthur previously served in several capacities at John Wayne Airport in Orange County, Calif. He served most recently as Deputy Airport Director— Finance and Administration, directing all aspects of the airport's financial operations, including accounting, budgeting, financial planning, bond financial reporting and analyses, and various administrative responsibilities. In his consulting capacity, Mr. Arthurviews issues from the perspective of airport management and assists clients in developing innovative solutions. For numerous clients, Mr. Arthur has directed the preparation of financial feasibility reports in support of consolidated rental car facilities as well as revenue bonds issued by a number of airport clients. He has prepared Master Plan and CIP funding plans. His financial modeling experience includes the development of airline rates and charges analyses, and he has provided consulting services related to all aspects of PFC, AIP and LOI funding. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES R.A. WIEDEMANN & ASSOCIATES KEY PERSONNEL NAME: Randal Wiedemann POSITION AND FIRM: President, PROFESSIONAL REGISTRATION: N/A R.A. Wiedemann & Associates, Inc. YEARS WITH R.A. WIEDEMANN & ASSOCIATES: 33 EDUCATION: TOTAL PROFESSIONAL EXPERIENCE (YEARS): 47 B.S. / University of Colorado / Marketing / 1975 M.B.A. / University of Cincinnati / Masters of Business Administration / 1979 PROJECT ROLE: Principal Consultant PUBLICATIONS & PROFESSIONAL AFFILIATIONS: Member AAAE, AOPA DIGEST SUMMARY OF EXPERIENCE: As President of R.A. Wiedemann & Associates, Randal Wiedemann brings over 47 years of airport planning experience to the firm's profile. Mr. Wiedemann concentrates his efforts in physical and economic planning areas with emphasis on airport business plans, knowledge management software, economic impact analysis, feasibility studies, airport master planning, airline service and marketing programs, financial plans, military joint use and reuse studies, airport management services, and environmental assessments. Mr. Wiedemann is one of the most experienced airport business planners in the nation, participating in the development of more than 95 airport business and marketing plans since 2000. Both general aviation and air carrier airports have been included in the list of successful business planning projects. Examples include Lee's Summit (MO), Lakeland Linder International (FL), Redlands (CA), Treasure Coast International (FL), Westover Airport (MA), Denton (TX), Hondo (TX), South Texas International (Edinburg, TX), Civil Air Terminal (DE), Plattsburgh (NY), New Braunfels (TX), Fort Smith (AR), Rutland (VT), Adirondack (NY), New Castle (DE), Delaware Coastal Airport (DE), Morehead (KY), Genesee County (NY), Oswego County (NY), Montpelier (VT), Palo Alto (CA), East Hampton (NY), Mid -Ohio Valley Regional (WV), Brookhaven, (NY), Millington (TN), Denton (TX), Suffolk County (NY), Maury County (TN), Rogers (AR), Canandaigua (NY), Bennington (VT), Decatur (IL), Galveston (TX), Somerset (KY), and many others. Mr. Wiedemann is also highly experienced in airport master planning, participating in more than 100 airport master plans since 1975. Mr. Wiedemann recently finished directing the Sugar Land Regional Airport Master Plan, and has had leading roles in master plans for Orlando -Sanford International (FL), South Texas International (TX), New Braunfels (TX), Lakeland (FL), and Treasure Coast (FL). He has participated in completed studies for Dickinson (ND), Cleveland (TN), Ashtabula County (OH), Buffalo International (NY), Farmingdale -Republic Airport (NY), Delaware Airpark (DE), Ft. Smith (AR), Charlottesville (VA), Manchester (NH), and many others. Seeing a deficiency in conventional airport master planning studies, Mr. Wiedemann developed a new strategic approach that combined his extensive airport business planning experience with airport master planning methods. The resulting plans include a strategic focus on facilities and services that can enhance revenues, including a market analysis for highest and best use of non -aviation airport real estate. Mr. Wiedemann received his Bachelor of Science degree in Marketing from the University of Colorado (1975) and his Master of Business Administration (M.B.A.) degree from the University of Cincinnati (1979). In addition, Mr. Wiedemann served on the faculty at Northern Kentucky University where he taught evening classes relating to aviation. Mr. Wiedemann holds a Part 107 UAS Remote Pilots License issued by the FAA. He has also been a certified 5010 airport safety inspector since 2004. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES R.A. WIEDEMANN & ASSOCIATES KEY PERSONNEL NAME: Seth A. Wiedemann POSITION AND FIRM: Associate PROFESSIONAL REGISTRATION: N/A R.A. Wiedemann & Associates, Inc. TOTAL PROFESSIONAL EXPERIENCE (YEARS): 11 EDUCATION: B.S./ Gatton College of Business & Economics, Univ. of Kentucky/ Management/ 2010 M.B.A./ Belmont University/ Masters of Business Administration/ 2017 PROJECT ROLE: Associate — Business Planning and Technology DIGEST SUMMARY OF EXPERIENCE: Seth Wiedemann is experienced in the areas of economic impact analyses, airport surveys, and analytical research. Seth works with RAWA's website management and design, logo design, and video production. He has also taken a lead role in a number of airport business plans, benefit/cost analyses, air service feasibility, aviation system planning, airport demand forecasting. Seth also holds a 14 CFR Part 107 remote pilot UAS license. In addition to this, Seth has developed a method for quantifying the relationship between an Airport and the surrounding real estate value. Using this model, an accurate estimation of the Airport's impact on surrounding properties can be made based on an Airport's annual operations, runway length, and fleet mix. Used for both residential and commercial real estate, this type of impact study has been utilized for Murfreesboro (TN) and the Delaware Aviation System Plan. Seth heads up the firm's technology development business and has developed applications for electronic knowledge retention (Qwarkle.com) and collaboration sites, airport business planning, and a number of websites, including those for the Texas Airports Council, La Porte (TX), Redlands (CA), New Braunfels (TX), Ashtabula County (OH), Cleveland (TN), Fairfield (TX), and Hondo (TX). Website development services include frontend and backend coding, onsite Search Engine Optimization, social media integration, beta testing, hosting and server implementation, content strategy and development, e-mail management, and uptime monitoring. Seth has extensive experience assisting airport operators in reviewing, drafting, and implementing tenant leases and lease provisions. Seth has developed airport lease policy documents for Rogers (AR) and Cuyahoga (OH) that standardize lease strategies, best practices, and provisions for both aeronautical and non -aeronautical leases. In addition to this, Seth has performed a detailed lease analysis for La Porte, (TX), Redlands (CA), Georgetown (KY), Galveston (TX), Sussex County (DE), and Hondo (TX). As a graphic designer, Seth Wiedemann has developed flyers, programs, name tags, and posters for events such as the Delaware Aviation Summit, and the Delaware Aviation Career Day. Seth also aided in the marketing for these events by maintaining websites, organizing sponsor lists, and compiling guest registration forms. Seth has also contributed to Air Service Feasibility Studies for Griffiss (NY) and Fairfield (TX), and Economic Impact Studies for the State of Vermont (16 airports), Weatherford (TX), Smyrna (TN), and Murfreesboro (TN). COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES 66 "CMT always does a great job. They have a high degree of credibility with our administration department and city council." Bob Hartnett, Deputy Director Reference: Micahel Anderson michael.anderson@cityofls.net 816.969.1817 1 � / R.A. Wiedemann & Associates, Inc. AVIATION CONSULTANTS b4 e, CMT MAt 4 .;;"ACA Facilitating the Vision LEE'S SUMMIT MUNICIPAL AIRPORT, MO Team member R.A. Wiedemann & Associates, Inc. was selected to develop a business plan for the Airport in 2008. This effort focused on increasing financial sustainability and an emphasis on the inhibitors or catalysts to make that happen. Given that the Lee's Summit Municipal Airport (LXT) is part of the Kansas City Metropolitan Area, there was identified unmet demand in corporate aviation. Within the General Aviation sector, corpo- rate aviation has the highest revenue potential. A critical recommendation of the business plan was to enhance infrastructure offerings, including a runway extension to attract corporate aviation. In 2017, the runway was extended from 4,000 feet to 5,500 feet in length and the resulting increase in business jet traffic has more than tripled jet fuel sales. The Airport has received a significant number of unsolicited offers to build new hangars and other amenities. A testament to utilizing resources other than the City's money to increase the revenue generating potential of the airport. Twelve years and over $30 million in FAA discretionary money later, the City selected the CMT team including R.A. Wiedemann to complete a comprehensive update to the 2008 business plan. This update has served to continue the momentum generated by the first business plan. Given the immense interest from users and tenants alike following the infrastructure upgrades, the City realized the need to set the appropriate course to capi- talize on aeronautical and non -aeronautical development. This required a review of lease terms, facility layouts, modification of the Airport brand, a complete review of rates and charges, management and policy recommen- dations, and a complete assessment of additional revenue enhancement opportunities both aeronautical and non -aeronautical. The community and City leadership has been supportive of the growth and there is an understanding that revenue generation at the Airport not only benefits the airport but meets the overall objective of economic development. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES " Rates & Charges Summary "We are very satisfied with BROWNSVILLE SOUTH PADRE ISLAND INTERNATIONAL AIRPORT the team's performance In 2020, Brownsville South Padre Island International Airport (BRO) was in discus - and believe that BRO's sions with a possible new entrant carrier but did not have a formal rates and charges model or methodology that they could use to determine the operating costs future is in good hands for the new air carrier. CMT turned around a summary rates and charges model with CMT" for BRO within days that allowed conversations to continue and advance with the new entrant carrier. BRO's two incumbent carriers had been in the market without Francisco Partida - Special changes for years, and BRO was unaware of how their invoices were originally Projects Manager calculated to even determine their current rate structure. CMT worked with airport staff to assigned budgets to core cost centers and "reverse engineered" the invoices to the current carriers to understand what would be fair and equitable. Our analysis Reference: supported two separate rates and charges models for signatory and non -signatory Stephen Muse carriers, allowing the airport to cover budgets and their investment in new facili- stephen.muse@brownsvilletx.gov ties, but also ensuring competitive rates for the new entrant carrier. BRO and the 956.542.1779 potential new entrant carrier were pleased with our quick work that allowed them to continue further discussions. Reference: Revenue Enhancement Rebecca Hupp, Airport Director rhupp@cityofboise.org BOISE AIRPORT, ID 208.972.8385 The CMT team, led by Dave Long, reviewed BOI's Request for Interest, proposals received, and financial proforma provided by the proposers. CMT then analyzed the information and prepared recommendations based upon "lessons learned" expe- riences from previous experience with similar projects. CMT led a 90-minute work session regarding the recommendations to BOI senior staff and city leadership. BOI applied this process to develop improved practices in their commercial development pursuits to increase non -aeronautical revenue. Reference: Revenue Enhancement Brian Weiler, Director of Aviation bweiler@flyspringfield.com SPRINGFIELD-BRANSON NATIONAL AIRPORT, MO 417.868.0500 Dave was tasked to provide an analysis regarding air cargo operations and the various complexities associated with (1) its current agreements with United Parcel Service, UPS Supply Chain Solutions, and Federal Express, and (2) relocating UPS CMT into the consolidated air cargo facility, and (3) initiating service with Amazon Air. The purpose was to update their current air cargo policies to best practice and to provide insight into providing consistency and revenue improvement. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Reference: Planning for Airport Privatization Development Charles W. Harrison cwhjr@cwhinc.net AIRGLADES INTERNATIONAL AIRPORT, H COUNTY, FL 863.990.7197 k 4 CMT CMT is serving as the lead consultant/planning firm for Airglades Interna- tional Airport, which has been accepted into the FAA's Airport Privatization Pilot Program (APPP). The FAA APPP program represents a unique opportunity to form a public -private partnership. The 2,700 acre Airglades International Airport is being developed to provide a permanent one -stop facility for perishable air cargo entering the United States specifically designed by stakeholders. The new facility at Airglades will provide long-term capacity for perishable air cargo growth and maintain South Florida as the "Gateway" to South and Central America. South Florida provides a wide range of multi -modal trade infrastructure including shipping ports, rail lines, and the Miami International Airport which handles 85% of all air cargo imports from South and Central America. As one of two airports actively engaged in the FAA APPP initiative, the private developer Airglades International Airport, LLC (AIA, LLC) and Hendry County have been working in collaboration with the FAA towards final approval of what will be a highly transformative approach to airport development specific to perishable air cargo and management. Upon completion, the privatiza- tion of Airglades Airport, in Hendry County, will be a key component in the long-term capacity needs of South Florida that has been pursued for decades. CMT has been the lead consultant providing planning services to assist in this major endeavor. Since the inception of the Airglades program, CMT has been assisting the developer with a grass -roots effort to "change and innovate" the way perish- able commodities enter the United States through South Florida including the ground swell of support that has been building for the Airglades privatization initiative. AIA began by formulating key private stakeholder partners with local agribusiness, aviation, and logistics interests. The viability of this proposal has attracted overwhelming validation and continued engagement by key companies and associations that represent the South Florida perishables industry along with the various state and local government entities. The attraction to the perishable community stakeholders is a permanent home for perishable air cargo and a unique user -equity model that supports a user designed air cargo and logistics facility. The Airglades initiative is a unique opportunity to leverage private sector stakeholders and innovate the way perishable air cargo is handled. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Reference: Jason Watkins, CFO jwatki ns@sfb.osaa. net 407.S8S.4018 66 "Very professional and receptive to my feedback around the modeling/ cash flows." Jason Watkins, CFO io�R.A. Wiedemann & Associates, Inc. AVIATION CONSULTANTS Reference: Camden Smith Camden.smith@colliercountyfl.gov 239.779.6048 CAPITAL Financial Implementation Plan ORLANDO-SANFORD INTERNATIONAL AIRPORT R.A. Wiedemann & Associates was selected as a part of an airport master planning team to conduct the financial implementation plan for Orlando -Son - ford International Airport (SFB) — the main Allegiant Air hub in Florida. With more than 3 million annual passengers in 2019, SFB has become a significant alternative to Orlando International Airport for tourists and theme park visitors. SFB has just constructed a new international terminal and is expanding its domestic passenger terminal. With more than 300,000 aircraft operations, the airport serves both airline and general aviation traffic. In addition to aviation activity, SFB has a significant business/industrial park (Commerce Park) and other developable land totaling more than 675 acres on airport property. Tasks in our work scope include the development of net revenue forecasts for the forecast horizon, along with revenue enhancement recommendations. The Sanford Airport Authority has a complex set of agreements with an airport operations and management organization (Orlando Sanford International - OSI). RAWA has developed forecasts of operating and non -operating revenues using airline landed weights, airfield, terminal leases, ground transportation/ rental cars, Commerce Park, along with Passenger Facility Charges (PFCs). In addition, analysis of FBO lease arrangements and projected revenues were developed. Forecasts of operating and non -operating expenses have covered all the cost categories, including capital development. Although COVID-19 has reduced traffic in 2020, the financial management of the airport has been strong, leaving no indebtedness. RAWA is generating the strategies of how best to pay for capital improvements recommended in the master plan, using a combination of airport -generated revenues and federal/state grants Collier County Hurricane Ian Emergency Response COLLIER COUNTY Following Hurricane Ian, Capital Consulting Solutions was the Project/ Construction Manager responsible to remove and eliminate safety hazards including flooded contents, walls, floors, mold, insulation, ceilings, etc. This effort enabled certain Collier County Facilities to return to public safety standards. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Reference: Airline Rates & Changes Consulting Services Henrietta Brown. Deputy Director - RNAT Finance & Administration/CFO, LOUIS ARMSTRONG NE ORLE INTE IONAL AIRPORT, LA henriettab@flymsy.com 504.417.1057 Unison provides comprehensive airline rates and charges consulting services to MSY, including the preparation of the annual airline rates and charges calcu- lations based on the budget for the next fiscal year, mid -year evaluations of the rates and charges, and the year-end rates and charges settlement calculations. Prior to the start of each fiscal year, Unison obtains from MSY staff the detailed expense and non -airline revenue budget information to apply in the airline rates and charges model. We prepare all the rates and charges calculations for the upcoming fiscal year and prepare financial tables that present all key infor- mation and assumptions. Unison representatives attend the airline committee meeting and assist MSY management in presenting the rates and charges to the airline representatives. Throughout each fiscal year, Unison prepares mid -year analyses to compare budgeted airline rates and charges to actual year-to-date amounts. Unison representatives attend the periodic airline committee meetings, to assist MSY management in responding to any questions or concerns from the airlines regarding the mid -year analyses. After the end of each fiscal year, Unison prepares the year-end settlement calculations and prepares a year-end settlement package for distribution to the airlines. Unison representatives attend the airline committee meeting to assist MSY management in explaining the results of the settlement process to the airlines. Unison also prepares periodic airline rates and charges analyses to address specific questions and/or concerns, as requested by MSY management from time to time. Unison assisted MSY in its strategies to fund a new terminal project, which also included a public parking structure, roadway enhancements, and airfield improve- ments. Unison prepared a comprehensive funding plan, which considered all available funding sources, including AIP funds (entitlements and discretionary), state funds, PFCs, airport cash flow, and revenue bonds. We updated the funding plan as the project has developed. We worked with the project planners to obtain detailed project cost estimates to use in the funding plan. We also developed a financial model, which we used to prepare financial projections of key metrics, including O&M expenses, non -airline revenues, airline revenues, airline cost per enplanement, coverage, and cash flow. Reference: Airline Use & Lease Agreement James Martin, Director of Finance and Administration MILWAUKE MITCHE L INTE IONAL AIRPORT, WI jmartin@mitchellairport.com 414.747.5703 Unison assisted MKE management in negotiating a new airline use and lease agreement, which revised MKE's residual methodology to enhance the Airport's ability to generate discretionary cash available for future capital projects. Unison personnel prepared supporting documentation for the negotiation sessions, attended the negotiation sessions, prepared the draft and final versions of the new airline use and lease agreement, and worked with management to implement the revised rates and charges methodology. In recent years, Unison has prepared financial analyses of alternate airline rates and charges methodologies, to assist MKE management in determining the optimum rate methodology to meet MKE's financial goals and objectives. Unison developed a financial model to prepare the analyses, and prepared financial ,/ projections for the alternate methodologies. MKE management sought a rate system that would allow ultra -low-cost carriers to begin service at MKE without NISONbecoming signatory air carriers. Unison developed a Transitory Rate for non-sig- CONSULTING natory carriers, which was approved by the signatory air carriers. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Co Xer COUVIty Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REfI UIRLD_ RF:FLRENCF.) Solicitation: 22-8051 — Airport Management Consulting Service Reference Ouestionnaire for: Airglades International A (Name. of Company Requesting Reference Information) - Crawford, Murphy & Tilly (Name: of Individuals Requesting Reference Information) — Laura Sakach Name:Charles W. Harrison Company:Florida Cargo Fresh, Inc. (FCF) & (Evaluator completing reference questionnaire) Airglades International Airport, LLC (AIA) Email: cwhjr@cwhine.net FAX: Telephone: 863-990-7197 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of I to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firmlindivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: Planning for Airport Privatization Development Project Budget: Budgget adjusts annual!y based upon "On - Demand" Services Completion Date: Ongoing Planning Services, Estimated Completion for Project Closeout/Financial_C_lose - 8/2023 Project Number of Days: Consultant for AIA since 2/14/2012 Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 9 3 Quality of work. 10 4 Quality of consultative advice provided on the project. to 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 9 7 Ability to verbally communicate and document information clearly and succinctly. 9 8 Abiltity to manage risks and unexpected project circumstances. 9 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 96 OLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES CO Ter C014ftty Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACHREQUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Questionnaire for: Boise Airport (Name of Company Requesting Reference Information) - Crawford, Murphy & Tilly (Name of Individuals Requesting Reference Information) — David Long Name: Company: Rebecca Hupp Boise Airport Email: rhupp@cityofboise.ort FAX: Telephone: (208)972-8385 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: Provide anaylsis of non -aeronautical Completion Date: June 30, 2021 airport compatable land and conduct 90-minute work session to senior staff and city officals Project Budget: $2,860 Project Number of Days: 30 days Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES CO Ter County Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REQUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Questionnaire for: Springfield — Branson National Airport (Name of Company Requesting Reference Information) - Crawford, Murphy & Tilly (Name of Individuals Requesting Reference Information) — David Long Name: Brian Weiler, AAE — Airport Director Company: Springfield -Branson National Airport (SGF) (Evaluator completing reference questionnaire) (Evaluator's Company completing reference) Email: bweiler&flysprinafield.com FAX: (417) 868-0501 Telephone: Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: Air Cargo Operation Analysis and Completion Date: September 3, 2021 provided 90-minute Work Session with Senior Staff Project Budget: $3,000 Project Number of Days: 30 days Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Co Ter C014MY Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REQUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Questionnaire for: Brownsville South Padre Island International (Name of Company Requesting Reference Information) - Crawford, Murphy & Tilly (Name of Individuals Requesting Reference Information) — Mike Reiter Name: Stephen Eliseo Muse 17 Company: City of Brownsville (Evaluator completing reference questionnaire) (Evaluator's Company completing reference) Email: FAX: N/A 956-542-1 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the fum/individual again) and i representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: Airport Rates and Charges Study Completion Date: December, 2022 Project Budget: $140,640.00 Project Number of Days: 12 Months Item 1 Criteria Ability to manage the project costs (minimize change orders to sco e p) Score must be completed) . 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; 10 manuals or going forward documentation, etc.) 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, eE. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES COILICT COHHty Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REOUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Questionnaire for: Collier Count (Name of Company Requesting Reference Information) — Capital Consulitng Solutions (Name of Individuals Requesting Reference Information) — Adam Ahmad Name: Camden Smith (Evaluator completing reference questionnaire) Email: Camden.Smith@CollierCountyfl.gov FAX: N/A Company: Collier County Facilities (Evaluator's Company completing reference) Telephone: 239-779-6048 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: Hurricane Ian Emergency Repairs Project Budget: $ 1 • 6 M Completion Date: Ongoing Project Number of Days: 9/29/22-P reSe nt Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Co ier County Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REQUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Questionnaire for: Lee's Summit Munici (Name of Comnanv Reauestine Reference Information) - Crawford. Mumhv & Tilly I (Name of Individuals Requesting Reference Information) — Andy Bodine Name:Michael Anderson, P.E. (Evaluator completing reference questionnaire) Email: michael.anderson(&citvofls.net FAX: Company:City of Lee's Summit (Evaluator's Company completing reference) 816-969-1817 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: LXT Airport Business Plan and Master Completion Date: ABP 3/2021, AMP Plan Update 11/2021 Project Budget: ABP $109,000. AMP $257,000 Project Number of Days: ABP 6 Months. AMP 1 Year Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES ISM Co ler C014"ty Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REOUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Ouestionnaire for: Lakeland Linder International (Name of Comnanv ReouestinQ Reference Information) — R.A. Wiedemann & Associates (Name of Individuals Requesting Reference Information) — Randal Wiedemann Name:Jason Watkins Company:CFO Orlando -Sanford International Airport (Evaluator completing reference questionnaire) (Evaluator's Company completing reference) Email: jwatkins(a-)osaa.net FAX: Telephone: (407) 585-4000 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: —Financial Analysis for Master Plan Completion Date: 10/28/2021 Project Budget: $89,425 Project Number of Days: 730 Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). NA 2 Ability to maintain project schedule (complete on -time or early). NA 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 80/80 (first two not applicable) COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Co ier County Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REQUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Ouestionnaire for: Milwaukee Mitchell International (Name of Comnanv Reauestina Reference Information) — Unison Consultine, Inc. I (Name of Individuals Requesting Reference Information) — Brian Drake Name:James Martin (Evaluator completing reference questionnaire) Email: jmartin@mitchellairport.com FAX: Company:Milwaukee Mitchell International Airport (Evaluator's Company completing reference) 414-747-5703 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: On -going Financial Consulting Services Completion Date: 12/2022 Project Budget: 2,403,966.00 Project Number of Days: _N/A (on -going professional contract Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 9 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 99 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Co -per County Procurement Services Division Form 5 Reference Questionnaire (USE ONE FORM FOR EACH REOUIRED REFERENCE) Solicitation: 22-8051 — Airport Management Consulting Service Reference Ouestionnaire for: Louis Armstrone New Orleans International Airport (Name of ComUanv Reauestin2 Reference Information) — Unison Consultine (Name of Individuals Requesting Reference Information) — Donald Arthur Name: Henrietta Brown, Deputy Director/CFO (Evaluator completing reference questionnaire) Email: FAX: Company: Louis Armstrong New Orleans International Airport (Evaluator's Company completing reference) 417-1057 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdival again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored "0." Project Description: On -going Financial Consulting Completion Date: Contract extends through December 2023 Services Project Budget: $500,000 per year (net of subconsultants) Project Number of Days: _N/A (on -going professional consulting services) Item Criteria Score must be completed) 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on -time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Section 6 Local Vendor Preference Local Commitment It should be noted that Capital Consultant Solutions is a Sub -Vendor to CMT. Capital Consultant Solutions is a local business of more than a decade having a current Business Tax Receipt issued by the Collier County Tax Collector, with a permanent physical business address located within the limits of Collier County, and whose staff operates and performs business in an area zoned for the conduct of such business. COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES Appendix Forms &Attachments Collier County Solicitation 22-8051 Cofer COu-nt Prowrement Senices Division Date: September 27, 2022 Email: Matthew.Catoe@colliercountyfl.gov Telephone: (239) 252-6098 Addendum # 1 From: Matthew Catoe, Procurement Strategist To: Interested Bidders Subject: Addendum #1 Solicitation # 22-8051 Airport Management Consulting Services The following clarifications are issued as an addendum: Change 1: Bid Opening Date/Time: Oetebe>- 29, 2022 a* 2:^�� November 7, 2022 at 3:00 PM Questions and Answers Date/Time: Oetebe>��z2022 at 5�.October 28, 2022 at 5:00 PM If you require additional information, please post a question on our Bid Sync (www.bidsync.com) bidding platform under the solicitation for this project. Please sign below and return a copy of this Addendum with your submittal for the above 11 //2022 Date Crawford. MuMhy & Tilly. Inc. (Name of Firm) 10/11/2022 7:35 AM p. 17 Collier County Solicitation 22-8051 COft CO-Wtty Procurement Services Division Date: October 10, 2022 Email: Lisa.Oien@colliercountyfl.gov Telephone: (239) 252-6098 Addendum # 2 From: Lisa Oien, Procurement Strategist To: Interested Bidders Subject: Addendum #2 Solicitation # 22-8051 Airport Management Consulting Services The following clarifications are issued as an addendum: Change 1: The Pre-Bid/Proposal Meeting Date/Time has been extended as follows: Oeteber�,2022,at !0AM October 20, 2022, at 10:30 AM Change 2: Addition: Uploaded revised Solicitation to update Pre Proposal Meeting and Due Date dates (22-8051 - Solicitation R1) Deletion: Removed original Solicitation Document (22-8051 — Solicitation) If you require additional information, please post a question on our Bid Sync (www.bidsync.com) bidding platform under the solicitation for this project. Please sign below and return a copy of this Addendum with your submittal for the above 1 1 /7/2022 Date Crawford. Murphy & Tilly. Inc. (Name of Firm) 10/11/2022 7:35 AM p. 18 GOter C OU-nt Procurement Services Division Date: November 7, 2022 Email: Lisa.Oien@colliercountyfl.gov Telephone: (239) 252-6098 Addendum # 3 From: Lisa Oien, Procurement Strategist To: Interested Bidders Subject: Addendum #3 Solicitation # 22-8051 Airport Management Consulting Services The following clarifications are issued as an addendum: Bid Opening Date/Time: November Ti022,—at 3:00 PN4 November 21, 2022, at 3:00 PM Questions and Answers Date/Time: Oetoberz�, 2022, 4 5�� n:r November 11, 2022, at 5:00 PM If you require additional information, please post a question on our Bid Sync (www.bidsync.com) bidding platform under the solicitation for this project. Please sign below and return a copy of this Addendum with your submittal for the above referenced solicitation. W Crawford, Murphy & Tilly, Inc, (Name of Firm) 11/19/22 Date GOter C OU-nt Procurement Services Division Date: November 21, 2022 Email: Lisa.Oien@colliercountyfl.gov Telephone: (239) 252-6098 Addendum # 4 From: Lisa Oien, Procurement Strategist To: Interested Bidders Subject: Addendum #4 Solicitation # 22-8051 Airport Management Consulting Services The following clarifications are issued as an addendum: Bid Opening Date/Time: November- 21, 2022, at 3:—�:00 N4 December 12, 2022 at 3:00pm Questions and Answers Date/Time: November11, 2022v* 5�-00 PN4 December 5, 2022 at 5:00pm If you require additional information, please post a question on our Bid Sync (www.bidsync.com) bidding platform under the solicitation for this project. Please sign below and return a copy of this Addendum with your submittal for the above referenced solicitation. 12/12/22 Date Crawford, Murphy & Tilly, Inc. (Name of Firm) Collier County Solicitation 22-8051 Co le-r County Procurement Services Division Vendor Check List IMPORTANT: Please review carefully and submit with your Proposal/Bid. All applicable documents shall be submitted electronically through BidSync. Vendor should checkoff each of the following items. Failure to provide the applicable documents may deem you non-responsive/non-responsible. ® General Bid Instructions has been acknowledged and accepted. ® Collier County Purchase Order Terms and Conditions have been acknowledged and accepted. ® Form 1: Vendor Declaration Statement ® Form 2: Conflict of Interest Certification Proof of status from Division of Corporations - Florida Department of State (If work performed in the State) - http://dos.myflorida.com/sunbiz/ should be attached with your submittal. ® Vendor MUST be enrolled in the E-Verify - https://www.e-verify.pov/ at the time of submission of the proposal/bid. Form 3: Immigration Affidavit Certification MUST be signed and attached with your submittal. E-Verify Memorandum of Understanding or Company Profile page should be attached with your submittal. Form 4: Certification for Claiming Status as a Local Business, if applicable, has been executed and returned. Collier or Lee County Business Tax Receipt should be attached with your submittal to be considered. Form 5: Reference Questionnaire form must be utilized for each requested reference and included with your submittal, if applicable to the solicitation. Form 6: Grant Provisions and Assurances package in its entirety, if applicable, are executed and should be included with your submittal. ® Vendor W-9 Form. ® Vendor acknowledges Insurance Requirements and is prepared to produce the required insurance certificate(s) within five (5) days of the County's issuance of a Notice of Recommend Award. ® The Bid Schedule has been completed and attached with your submittal, applicable to bids. X❑ Copies of all requested licenses and/or certifications to complete the requirements of the project. ® All addenda have been signed and attached. ® County's IT Technical Architecture Requirements has been acknowledged and accepted, if applicable. Q Any and all supplemental requirements and terms has been acknowledged and accepted, if applicable. 10/11/2022 7:35 AM P. 19 Collier County Solicitation 22-8051 Co jer County Procurement Services Division Form 1: Vendor Declaration Statement BOARD OF COUNTY COMMISSIONERS Collier County Government Complex Naples, Florida 34112 Dear Commissioners: The undersigned, as Vendor declares that this response is made without connection or arrangement with any other person and this proposal is in every respect fair and made in good faith, without collusion or fraud. The Vendor hereby declares the instructions, purchase order terms and conditions, requirements, and specifications/scope of work of this solicitation have been fully examined and accepted. The Vendor agrees, if this solicitation submittal is accepted by Collier County, to accept a Purchase Order as a form of a formal contract or to execute a Collier County formal contract for purposes of establishing a contractual relationship between the Vendor and Collier County, for the performance of all requirements to which this solicitation pertains. The Vendor states that the submitted is based upon the documents listed by the above referenced solicitation. The Vendor agrees to comply with the requirements in accordance with the terms, conditions and specifications denoted herein and according to the pricing submitted as a part of the Vendor's bids. Further, the Vendor agrees that if awarded a contract for these goods and/or services, the Vendor will not be eligible to compete, submit a proposal, be awarded, or perform as a sub -vendor for any future associated work that is a result of this awarded contract. IN WITNESS WHEREOF, WE have hereunto subscribed our names on this 7 day of November , 2022 in the County of Hendry , in the State of FL Firm's Legal Name: Address: City, State, Zip Code: Florida Certificate of Authority Document Number Federal Tax Identification Number *CCR # or CAGE Code *Only if Grant Funded Telephone: Email: Signature by: (Typed and written) Title: Crawford, Murphy & Tilly 870 W Hickpochee Ave Ste 900 LaBelle, FL 33935 29465 Airport Advocate 10/11/2022 7:35 AM p. 20 Collier County Additional Contact Information Solicitation 22-8051 Send payments to: Crawford. Mumhv & Tilly. Inc. (required if different from Company name used as payee above) Contact name: David Graham Long Title: Airport Advocate Address: 7400 Baymeadows Way, Ste 220 City, State, ZIP Jacksonville, FL 32256 Telephone: 863.885.3020 Email: dlong@cmtengr.com Office servicing Collier County to place orders (required if different from above) Contact name: Title: Address: City, State, ZIP Telephone: Email: 863.885.3020 dlong@cmtengr.com 10/11/2022 7:35 AM p. 21 Collier County Solicitation 22-8051 Y Co ier County Procurement Services Division Form 2: Conflict of Interest Certification Affidavit The Vendor certifies that, to the best of its knowledge and belief, the past and current work on any Collier County project affiliated with this solicitation does not pose an organizational conflict as described by one of the three categories below: Biased ground rules - The firm has not set the "ground rules" for affiliated past or current Collier County project identified above (e.g., writing a procurement's statement of work, specifications, or performing systems engineering and technical direction for the procurement) which appears to skew the competition in favor of my firm. Impaired objectivity -The firm has not performed work on an affiliated past or current Collier County project identified above to evaluate proposals / past performance of itself or a competitor, which calls into question the contractor's ability to render impartial advice to the government. Unequal access to information - The firm has not had access to nonpublic information as part of its performance of a Collier County project identified above which may have provided the contractor (or an affiliate) with an unfair competitive advantage in current or future solicitations and contracts. In addition to this signed affidavit, the contractor / vendor must provide the following: I . All documents produced as a result of the work completed in the past or currently being worked on for the above -mentioned project; and, 2. Indicate if the information produced was obtained as a matter of public record (in the "sunshine") or through non-public (not in the "sunshine") conversation (s), meeting(s), document(s) and/or other means. Failure to disclose all material or having an organizational conflict in one or more of the three categories above be identified, may result in the disqualification for future solicitations affiliated with the above referenced project(s). By the signature below, the firm (employees, officers and/or agents) certifies, and hereby discloses, that, to the best oftheir knowledge and belief, all relevant facts concerning past, present, or currently planned interest or activity (financial, contractual, organizational, or otherwise) which relates to the project identified above has been fully disclosed and does not pose an organizational conflict. Crawford, MuMby & Tilly, Inc. Company Name i Signature David Graham Long, AAE, Airport Advocate Print Name and Title Stateof-F-wKIS-j� County of _ !>, Q � L cam` t The foregoing instrument was acknowledged before me by means of (physical presence or 0 online notarization, this I— day of_N.) Y:rM D3z L (month), _ -z ; Zz (year), by ;7DiA U i IS G-I°-iq N A Tq L-z NEr (name of person acknowledging). (Signature of Notaryic) Personally Known OR Produced Identification _ L Type of Identification Produced (P aLS2amn C'nmrnig-finned Name of Notary Public) t�� • E; Ah6"40A BRAHIMAJ P`url5ry of Florida „ Ublic, date fi"IftU4510n# GG 308495 WY o;tmrn. expires Mar, 8 2023 10/11/2022 7:35 AM p. 22 Collier County Solicitation 22-8051 Co Ter C0141 ity Procurement Services Division Form 3: Immigration Affidavit Certification This Affidavit is required and should be signed, by an authorized principal of the firm and submitted with formal solicitation submittals. Further, Vendors are required to be enrolled in the E-Verify program (htt�s://www.e-verifv.gov/), at the time of the submission of the Vendor's proposal/bid. Acceptable evidence of your enrollment consists of a copy of the properly completed E- Verify Company Profile page or a copy of the fully executed E-Verify Memorandum of Understanding for the company which will be produced at the time of the submission of the Vendor's proposal/bid or within five (5) day of the Couuty's Notice of Recommend Award. FAILURE TO EXECUTE THIS AFFIDAVIT CERTIFICATION AND SUBMIT WITH VENDOR'S PROPOSAL/BID MAY DEEM THE VENDOR'S AS NON -RESPONSIVE. Collier County will not intentionally award County contracts to any Vendor who knowingly employs unauthorized alien workers, constituting a violation of the employment provision contained in 8 U.S.C. Section 1324 a(e) Section 274A(e) of the Immigration and Nationality Act ("INA"). Collier County may consider the employment by any Vendor of unauthorized aliens a violation of Section 274A (e) of the INA. Such Violation by the recipient of the Employment Provisions contained in Section 274A (e) of the INA shall be grounds for unilateral termination of the contract by Collier County. Vendor attests that they are fully compliant with all applicable immigration laws (specifically to the 1986 Immigration Act and subsequent Amendment(s), that it is aware of and in compliance with the requirements set forth in Florida Statutes §448.095, and agrees to comply with the provisions of the Memorandum of Understanding with E-Verify and to provide proof of enrollment in The Employment Eligibility Verification System (E-Verify), operated by the Department of Homeland Security in partnership with the Social Security Administration at the time of submission of the Vendor's proposal/bid. Cra rd. Muroby & Tilly. Inc. Company Name f. Signature David Gr 'am Long, AAE, Airport Advocate Print Name and Title State of CC.o2 I b A County of `>( S �- The foregoing instrument was acknowledged before me by means of;�physical presence or ❑ online notarization, this day of p��, tl l,-F (month), year), by -D�.11 i b GfZ-a"t"t Law--,- (name of person acknowledging). Personally Known OR Produced Identification Ft bL -- Type of Identification Produced (Signature ofNota blic) ESmF'Z,<)-l- f-P, %44\-:) (Print, Type, or Stamp Commissioned Name of Notary Public) R 11MERAWA BliAHIMAJNotary Public, State of Florida Commiss*n# GO 306485 My comm. expires Mar. B, 2023 10/11/2022 T35 AM p. 23 Collier County Co xer County Procurement Services Division Form 4: Vendor Submittal — Local Vendor Preference Certification (Check Appropriate Boxes Below) CMT is not located in Collier County. State of Florida (Select County if Vendor is described as a Local Business) ❑ Collier County ❑ Lee County Solicitation 22-8051 Vendor affirms that it is a local business as defined by the Procurement Ordinance of the Collier County Board of County Commissioners and the Regulations Thereto. As defined in Section Fifteen of the Collier County Procurement Ordinance: Local business means the vendor has a current Business Tax Receipt issued by the Collier County Tax Collector prior to bid or proposal submission to do business within Collier County, and that identifies the business with a permanent physical business address located within the limits of Collier County from which the vendor's staff operates and performs business in an area zoned for the conduct of such business. A Post Office Box or a facility that receives mail, or a non -permanent structure such as a construction trailer, storage shed, or other non -permanent structure shall not be used for the purpose of establishing said physical address. In addition to the foregoing, a vendor shall not be considered a "local business" unless it contributes to the economic development and well-being of Collier County in a verifiable and measurable way. This may include, but not be limited to, the retention and expansion of employment opportunities, support and increase to the County's tax base, and residency of employees and principals of the business within Collier County. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to be eligible for consideration as a "local business" under this section. A vendor who misrepresents the Local Preference status of its firm in a proposal or bid submitted to the County will lose the privilege to claim Local Preference status for a period of up to one year under this section. Vendor must complete the following information: Year Business Established in ❑Collier County or ❑ Lee County: N/A Number of Employees (Including Owner(s) or Corporate Officers): 400 Number of Employees Living in ❑ Collier County or ❑X Lee (Including Owner(s) or Corporate Officers): 4 If requested by the County, Vendor will be required to provide documentation substantiating the information given in this certification. Failure to do so will result in vendor's submission being deemed not applicable. and Date Certification: Under penalties ofperiury, I certify that the information shown on this form is correct to my knowledge. Company Name: Crawford, Murphy & Tilly, Inc. Date Address in Collie Lee unty: N/A Signature: 11 /7/2022 Title: Airport Advocate COLLIER COUNTY AIRPORT MANAGEMENT CONSULTING SERVICES W-0 Request for Taxpayer Give Form to the Form (Rev.Oclober201B) Identification Number and Certification requester. Do not Depafinentatthe Treasury send to the IFIS. Internal Revenue Service ► Go to www.irs.gov/FormW9 for instructions and the latest information. 1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank. Crawford, Murphy & Tilly, Inc. 217-787-8050 2 Business name/disregarded entity name, if different from above m � 3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the Y 4 Exemptions codas apply only to p� ( PPY Y following seven boxes. certain entities, not individuals; see o ❑ Individual/sole proprietor or ❑ C Corporation ❑✓ 5 Corporation ❑ Partnership ❑ TrusUestate instructions on page 3): e single -member LLC Exempt payee code (if any) 5 ao 4, ❑ Limited liability company. Fnler the tax classification (C=C corporation, S=S corporation, P-Partnership) o Note: Check the appropriate box in the line above for the tax classification of the single -member owner. Do not check Exemption from FATCA reporting H e LLC if the LLC is classified as a single -member LLC that is disregarded from the owner unless the owner of the LLC is code ( If any) 4 u another LLC that Is not disregarded from the owner for U.S. federal tax purposes, Otherwise, a single -member LLC that is disregarded from the owner should check the appropriate box for the tar classification of its owner. �j ❑ Other (see instructions) ► (AppSss io acc—Is m W&n nrd oursidn the U.S.j 0 5 Address (number, street, and apt. or suite no.) See instructions. Requester's name and address (oplfonal) A 2750 West Washington Street. 6 Cily, slate, and ZIP code S rin field IL 62702 7 List account numbers) here (optional) • °� Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid social security number resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, laterater. . For other backup withholding. For individuals, this is generally your social security number (SHowever, fora m 4 entities, it is your employer identification number (EIN). If you do not have a number, see Now to get a TIN, later. or Note; It the account is in more than one name, see the instructions for line 1. Also see What Name and Employer ide Number To Give the Requester for guidelines on whose number to enter. 11 j C Certification _ — Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2, 1 am not subject to backup wit hholdingbecause: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all Interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. 1 am a U.S, citizen or other U.S, person (defined below); and 4. The FATCA code(s) entered an this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification Instructions, You most crossout item 2 above If you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisit#on or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dviden s, you are not required to sign the certiticatlon, but you must provide your correct TIN. See the instructions for Part 11, later. SigHer Signature of • f••. - Here U.S. person General Instructions • Form 1099-DfV (dividends, 1 cluding those from stocks or mutual funds) Section references are to the Internal Revenue Code unless olherwlse noted. Future developments, For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.Irs.gov1FormW9. Purpose of Dorm An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may beyour social security number {SSN), individual taxpayer identification number (ITN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report an an information return the amount paid to you, or other amount reportable on an information return, Examples of information returns include, but are not limited to, the following, • Farm 1099-INT (interest earned or paid) • Form 1099-MISC (various types of income, prizes, awards, or dross proceeds) • Form 1099-8 (stock or mutual fund sales and certain other transactions by brokers) • Form 1009-S (proceeds from real estate transactions) • Form 1099-K (merchant card and third party network transactions) • Form 1098 (home mortgage Interest), 109E-E (student loan interest), 1098-T (tuition) • Farm 1099-C (canceled debt) • Form 1099-A (acquisilion or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later, Cal.No,10231x Form W-9 (Rev.10.2018) CERTIFICATE OF LIABILITY INSURANCE 12/20/20221 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER 1-800-527-9049 CONTACTNAME: Audrey McNeill Holmes Murphy and Associates PHONE FAX /C No Ext : No: 309-282-3907 A/C 866-501-3945 (A/C. - Peoria E-MAIL 311 S.W. Water Street ADDRESS: amcneill@holmesmurphy.com INSURER(S) AFFORDING COVERAGE NAIC # Suite 211 INSURERA:EMPLOYERS MUT CAS CO 21415 Peoria, IL 61602-4108 INSURED INSURERB: COLONY INS CO 39993 Crawford, Murphy & Tilly, Inc. INSURERC:XL SPECIALTY INS CO 37885 CMT North America, Inc. 2750 West Washington INSURERD: INSURER E : INSURERF: Springfield, IL 62702 COVERAGES CERTIFICATE NUMBER: 64010946 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSD SUBR WVD POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DDIYYYY LIMITS A X COMMERCIAL GENERAL LIABILITY 5D57480 01/01/22 01/01/23 EACH OCCURRENCE $ 1,000,000 CLAIMS -MADE OCCUR PREMISES(Ea oNTEcur ence)$ 1,000,000 X MED EXP (Any one person) $ 10,000 Sev of Int PERSONAL & ADV INJURY $ 1,000,000 GEML AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY JE LOC PRODUCTS - COMP/OP AGG $ 2,000,000 Valuable Papers $ 1,000,000 OTHER: A AUTOMOBILE LIABILITY 5E57480 01/01/22 01/01/23 COMBINED SINGLE LIMIT Ea accident $ 1,000,000 X BODILY INJURY (Per person) $ ANY AUTO OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY (Per accident) $ X PROPERTY DAMAGE Per accident $ HIRED X NON -OWNED AUTOS ONLY AUTOS ONLY A X UMBRELLA LIAB X OCCUR 5J57480 01/01/22 01/01/23 EACH OCCURRENCE $ 10,000,000 AGGREGATE $ 10,000,000 EXCESS LIAB CLAIMS -MADE DED X RETENTION$ 10,000 $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN ANYPROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? IN I (Mandatory in NH) NIA 5H57480 01/01/22 01/01/23 X STATUTE ERH E.L. EACH ACCIDENT $ 1 , OOO , OOO E.L. DISEASE - EA EMPLOYEE $ 1400400 If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 1 , 000 , 000 B Pollution Liability CSP4223613 01/01/22 01/01/23 Claim / Aggregate 2,000,000 C Professional Liability DPR9986962 01/01/22 01/01/23 Each Claim 5,000,000 Aggregate 7,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Additional Insured status applies to General and Auto Liability on a "blanket" basis. Waiver of subrogation status applies to all policies on a "blanket" basis. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE "EVIDENCE OF INSURANCE - For Proposal Purposes" THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE *, IL 62702 USA ACORD 25 (2016/03) amcneillil 64010946 ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Lees Summit Municipal Airport 2021 Business Plan FINAL TECHNICAL REPORT R.A. Wiedemann & Associates, Inc. In association with AVIATION CONSULTANTS MICMT Lee's Summit Municipal Airport Business Plan SECTION 1: INTRODUCTION 19 LEES SUMMIT M I S S O U R I TABLE OF CONTENTS January 2021 1.1 Introduction....................................................................................................................................................1-1 1.2 Mission and Vision Statements...............................................................................................................1-1 1.3 Airport Mission..............................................................................................................................................1-3 1.4 Recommendations from Previous Business Plan..............................................................................1-3 1.5 Report Outline...............................................................................................................................................1-4 SECTION 2: MANAGEMENT STRUCTURE & FUTURE NEEDS 2.1 Introduction....................................................................................................................................................2-1 2.2 Airport Management Structure...............................................................................................................2-2 2.3 Airport Staffing..............................................................................................................................................2-3 SECTION 3: AIRPORT SWOT ANALYSIS 3.1 Introduction....................................................................................................................................................3-1 3.2 SWOT Outline and Objectives.................................................................................................................3-1 3.3 Input for Economic Impact Model.........................................................................................................3-3 3.4 Economic Impact Methodology.............................................................................................................3-4 3.5 Summary..........................................................................................................................................................3-7 SECTION 4: AIRPORT MARKET ANALYSIS & RATES AND CHARGES 4.1 Introduction....................................................................................................................................................4-1 4.2 Airport Brand..................................................................................................................................................4-1 4.3 Market Position & Rates and Charges.................................................................................................4-6 4.4 Impacts of Changing Aircraft Fleet Mix............................................................................................4-14 4.5 Assumed Impacts of COVID-19...........................................................................................................4-15 4.6 Aviation & Non -Aviation Parcels for Development.....................................................................4-16 SECTION S: BASELINE FINANCIAL PROJECTIONS 5.1 Introduction....................................................................................................................................................5-1 5.2 Historical Revenues.....................................................................................................................................5-1 5.3 Historical Expenses......................................................................................................................................5-5 H F R.A. Wiedemann & Associates, Inc. in association with CMT TOC-1 Lee's Summit Municipal Airport Business Plan 19 LEFS SUMMIT M I S S O U R I January 2027 5.4 Baseline Forecast of Operating Revenues & Expenses..................................................................5-9 5.5 Summary.......................................................................................................................................................5-10 SECTION 6: REVENUE ENHANCEMENT OPTIONS 6.1 Distillation of SWOT Findings..................................................................................................................6-1 6.2 Revenue Enhancement Opportunities..................................................................................................6-4 SECTION 7: RECOMMENDED PLAN 7.1 Attraction of Corporate Aviation............................................................................................................7-1 7.2 Hangar Development..................................................................................................................................7-3 7.3 Continued Improved Terminal Amenities and Services.................................................................7-7 7.4 Airport Branding...........................................................................................................................................7-9 7.5 Aviation Education/Flight School........................................................................................................7-12 7.6 Non -Aviation Property Development................................................................................................7-14 7.7 Management and Policy Recommendations..................................................................................7-19 7.8 Impact on Revenues and Expenses.................................................................................................... 7-23 7.9 Summary of Recommendations..........................................................................................................7-28 LIST OF FIGURES Figure 1-1 —Cessna Longitude Business Jet..............................................................................................1-1 Figure 2-1 — Planned Staffing/Organization Chart (2021)...................................................................2-1 Figure 2-2 — Planned Staffing/Organization Chart (2021)...................................................................2-2 Figure2-3 — Hangar 1 Interior........................................................................................................................2-3 Figure3-1 — SWOT Meeting............................................................................................................................3-1 Figure3-2 — Airport Runway 18-36..............................................................................................................3-3 Figure 3-3 — Avgas Fueling Operation at LXT...........................................................................................3-5 Figure 3-4 — SWOT Graphical Summary.....................................................................................................3-8 Figure 4-1 — Cessna Twin Engine Aircraft at LXT.....................................................................................4-1 Figure4-2 — Hangar 1 at LXT..........................................................................................................................4-3 Figure4-3 — LXT Service Area.........................................................................................................................4-7 Figure 4-4 — Runway 18-36 Looking North...............................................................................................4-8 Figure4-5 — Hangars at LXT............................................................................................................................4-9 If R.A. Wiedemann & Associates, Inc. in association with CMT TOC-2 Lee's Summit Municipal Airport Business Plan 19 LEFS SUMMIT M I S S O U R I January 2027 Figure4-6 — T-Hangar Rows at LXT...........................................................................................................4-14 Figure 4-7 — On -Airport Non -Aviation Development Areas............................................................4-17 Figure 5-1 — Historical Operating Revenues by Type............................................................................5-3 Figure 5-2 — Comparison of Historical Operating Revenue Category Splits.................................5-4 Figure 5-3 — Comparison of Historical Fuel Revenue by Type...........................................................5-4 Figure 5-4 — Comparison of Historical Lease Revenue by Type........................................................5-4 Figure 5-4 — Historical Operating Expenses by Category.....................................................................5-7 Figure6-1 — SWOT Workshop........................................................................................................................6-1 Figure 6-2 — Hangar 1 Aircraft Storage at LXT.........................................................................................6-2 Figure6-3 — Hangar 1 at LXT..........................................................................................................................6-7 Figure 6-4— Fueling Operation at LXT........................................................................................................6-9 Figure 6-5 — Historical Iconic Brands......................................................................................................... 6-10 Figure 6-6 — Flight Simulator Controls..................................................................................................... 6-16 Figure 6-7 — Non -Aviation Airport Land for Possible Development ............................................. 6-19 Figure7-1 — Hangar 1 at LXT..........................................................................................................................7-5 Figure 7-2 — Inputs to Hangar Decision Model........................................................................................7-6 Figure 7-3 — Signature Flight Support Amenities....................................................................................7-8 Figure 7-4 — Signature Flight Support Services........................................................................................7-8 Figure7-5 — Sketch Logo Samples............................................................................................................. 7-10 Figure 7-6 — Cumulative Revenue Production by Strategy............................................................... 7-27 Figure 7-7 — Percentage of Incremental Revenue Totals by Strategy .......................................... 7-28 LIST OF TABLES Table4-1 — Facility Comparison..................................................................................................................4-11 Table 4-2 — Service Comparison.................................................................................................................4-12 Table 4-3 — Rates and Charges Comparison..........................................................................................4-13 Table4-4 — Fuel Sales Growth.....................................................................................................................4-15 Table 5-1 — Historical Revenues.....................................................................................................................5-1 Table 5-2 — Operational Revenue Ratio by Category............................................................................5-3 If R.A. Wiedemann & Associates, Inc. in association with CMT TOC-3 Lee's Summit Municipal Airport Business Plan 19 LEFS SUMMIT M I S S O U R I January 2027 Table5-3 — Historical Expenses......................................................................................................................5-5 Table 5-4 — Comparison of Operating Revenues & Expenses............................................................5-8 Table 5-5 — Baseline Forecast of Operating Revenues and Expenses ........................................... 5-11 Table 5-6 — Baseline Net Revenues............................................................................................................ 5-13 Table 7-1 — City Hangar Development Model — 20 Year......................................................................7-4 Table 7-2 — Private Development of Hangars: 20 Year Proforma.....................................................7-5 Table 7-3 — Forecast of Operating Revenues and Expenses............................................................7-25 APPENDIX AppendixA — LXT Lease Analysis.................................................................................................................. A-1 AppendixB — Rates & Charges.......................................................................................................................B-1 If R.A. Wiedemann & Associates, Inc. in association with CMT TOC-4 Section 1 Introduction Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT LEE'S SUMMIT MUNICIPAL AIRPORT BUSINESS PLAN January 2027 HE PURPOSE OF THIS BUSINESS PLAN for Lee's 44 Summit Municipal Airport (LXT) is to build on the recommendations of the previous business f plan and move the Airport to the next level of service and financial production. Much of this planning effort is devoted to updating the previous plan, while the remainder of this work is to establish new goals, new methods, and new recommendations for achieving the vision established for the Airport's future. Our understanding of the current situation involve several components, including the Airport's Figure 1-1 -Cessna Longitude Business Jet s competitive setting, the highest and best use of Airport property, the attraction of new corporate aviation, the potential for hangar development, the high growth of the City of Lee's Summit, and the opportunity of the Sponsor to examine the Airport branding and marketing program. This Business Plan is being conducted concurrently with the Airport's Master Plan. As such, both planning efforts will benefit from coordinating findings, forecasts, and strategic recommendations. HE LEE'S SUMMIT PUBLIC WORKS DEPARTMENT (LSPW) operates the municipal Airport and has adopted the following Mission and Vision Statements for its facilities: Mission Statement LSPW is committed to promoting and supporting our community's quality of life by working to provide: ► Safe and Efficient Infrastructure ► Responsive Services ► Ethical and Equitable Customer Service If R.A. Wiedemann & Associates, Inc. in association with CMT 1-1 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT Vision Statement January 2027 LSPW aspires to provide outstanding services in an effort to achieve community and organizational goals in accordance with the City's core values. Growth, redevelopment, and maintenance will be accommodated through progressive planning and implementation. Employees are critical to our success and we are committed to promoting a positive work environment. Lee's Summit Strategic Plan Mission and Vision' In 2019, the City engaged in a strategic planning process — Ignite! Your ideas. Our future. — to capture the long-term vision for the community and provide direction for the organization. The strategic planning effort established the following city-wide Mission and Vision statements: • Mission: To enrich lives in our community through collaboration, creativity, and commitment. • Vision: A vibrant community ensuring the finest quality of life for all generations. These mission and vision statements established in the City's strategic plan reinforce the mission and vision outlined for LXT. As LSPW supports the quality of life providing vital infrastructure and services, the Airport serves an integral role in the achievement of those goals. These statements provide the basis for defining the Airport mission. The work on this business plan is an example of proactive planning to ensure that the Airport is improved in an effective and efficient manner. EE'S SUMMIT MUNICIPAL AIRPORT'S ROLE IS THAT of a general aviation facility, providing general aviation services for regional air transportation. Lee's Summit Municipal Airport is a designated reliever to Kansas City International Airport and accommodates general aviation activity including all types of piston, turbo prop, and jet business aircraft. The Airport is operated by the Lee's Summit Public Works Department (LSPW) but is subject to administrative and legislative control by other municipal departments and the City Council. The mission and vision statements for both the LSPW and the City's strategic plan can be applied to the Airport. That is, the City is dedicated to promoting and supporting the community's quality of life by working to provide safe and efficient infrastructure. This includes the Airport. As an asset to the community, the Airport provides air transportation infrastructure needed for both business and personal travel. In addition to this, the City strategic plan established seven critical success factors that help provide a roadmap for policy decisions in the future. These critical success factors are listed below ' Source: http://igniteourfuture.net/ If R.A. Wiedemann & Associates, Inc. in association with CMT 1-2 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT and contain priority objectives. January 2027 • Strategic Economic Development- Build an adaptable framework for continued growth in a changing environment • Cultural and Recreational Amenities- Create a community that celebrates, welcomes and supports cultural and recreation amenities • Community Health and Well -Being- Support a healthy, happy community by improving healthy lifestyle choices and opportunities. • City Services and Infrastructure- Sustain and enhance City services to protect a high quality of life • Strong Neighborhoods With Housing Choices- Maintain thriving, quality neighborhoods that connect a diversity of residents throughout the community • Collaborative Relations With Education Partners- Enhance and plan for educational opportunities to support economic development • Community Engagement- Create a healthy and balanced community for all voices In the previous Airport Business Plan, operational objectives were outlined that support the overall LSPW mission statement and directly influence the critical success factors outlined in the City's strategic plan. Operational Objectives • Strive to provide safe, excellent airport facilities and services to its based aircraft owners and the flying public, while operating compatibly with its neighbors and providing a base for economic development. Continue to operate the Airport safely, efficiently, and in a manner that conserves City resov rces of time and money. • Strive to right -size expenditures and increase revenues at the Airport, without sacrificing needed services. • Encourage private sector investment in the utilization of the Airport's facilities. • 5upplement economic development goals of I-ee's 5ummit as opportunities arise at the Airport. The final result IS t0 help Encourage compatible public use of Airport facilities or p property, where possible and appropriate. the Airport achieve greater financial and operational performance in support of the community's overall goals and vision. HE PREVIOUS BUSINESS PLAN FOR LEE'S SUMMIT Municipal Airport was developed In 2008. Recommendations from that Plan have created a business -friendly atmosphere at the Airport that extends to both facilities and services. These changes have focused on efforts to attract corporate aviation and to develop hangar space. "Game -changing" recommendations included: ► Accelerating the Runway Extension to 5,500 Feet: The previous master plan recommended an extension and upgrade to Airport Reference Code (ARC) C-II standards for Runway 18-36. This categorization by the FAA indicates the design standards need to accommodate medium to large business jet aircraft. Because of revenue considerations, a strategic option was recommended in the Business Plan to accelerate the runway If R.A. Wiedemann & Associates, Inc. in association with CMT 1-3 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M 13 S 0 U R I January 2027 extension, even if it had to be done initially to smaller, ARC B-II design standards, which are meant to accommodate turbo prop and light jet aircraft. ► Marketing and Recruitment of Corporate Aviation: Recognizing the new appeal of a 5,500-foot runway, the Business Plan recommended aggressive marketing of corporate aviation. ► Corporate Hangar Development: The Business Plan provided three different models for hangar development, based upon the availability of capital funding. These included both City development and Private development of hangars, with funding options and pro formas. ► Improved Terminal Amenities and Services: Recognizing the need to upgrade amenities and services for corporate and business aviation, recommendations were made to acquire fuel trucks, increase availability and hours of service for jet fuel, upgrading the terminal building to include a conference room, corporate pilots lounge, provide better ground transportation services, and transition to corporate aviation standards for lease language, property use, and aesthetics. ► New Branding toward Corporate and Business Use: Recommended actions included new logo, website, signage, tagline, and mission statement. In addition, a marketing budget was recommended to promote the new Airport improvements. As it turned out, the market reacted as predicted in the previous Business Plan. That is, the extension of Runway 18-36 brought new corporate aviation to the Airport in unprecedented numbers. The high growth in fuel sales since 2017 (completed runway extension) reflected the increased usage by business jets in the Kansas City metro area. In addition, there have been requests for new hangar development and continued improvements to terminal amenities and services. The City has worked hard to keep up with the demand and this new Master Plan and Business Plan will help chart the course of development for the next wave of business aviation activity. Undergirding the willingness of the City to expand and meet the new demand has been a growing recognition by the community of the value of the Airport to local jobs and economic development. This includes recognition by the Chamber of Commerce, the Economic Development Council, private corporations, and results from recent efforts by LXT to involve the community and stakeholders. In addition, the Airport has become increasingly self-sufficient regarding its operational costs, as fuel sales continue to rise. This attitude of acceptance and support has not always been there. However, the steady performance and improvements to financial production have won over many previous non -supporters. N ORDER TO DEVELOP NEW RECOMMENDATIONS TO address current issues, this Business Plan report has been organized to include the following sections: If R.A. Wiedemann & Associates, Inc. in association with CMT 1-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT ► Section 1 - Introduction ► Section 2 - Management Structure & Future Needs ► Section 3 — Airport SWOT Analysis ► Section 4 - Airport Market Analysis & Rates and Charges ► Section 5 - Baseline Financial Projections ► Section 6 — Revenue Enhancement Options ► Section 7 - Recommended Plan and Proformas ► Appendix - Airport Lease Analyses ► Appendix B — Rates & Charges January 2027 If R.A. Wiedemann & Associates, Inc. in association with CMT 1-5 Section 2 Management Structure & Future Needs Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I MANAGEMENT STRUCTURE & FUTURE NEEDS INCE THE PREVIOUS AIRPORT BUSINESS PLAN (2008), the Airport management structure has changed very little. Major events in the interim have included the purchase of Hangar 1 in 2016 and the primary runway extension to 5,500 feet in 2017. Since that time, a significant jump in corporate aviation activity has occurred at the Airport. This has introduced the potential need for a new or upgraded service model. A description of the existing structure and future challenges is provided in the following sections. January 2027 Figure 2-1 — Teamwork Is Essential EE'S SUMMIT MUNICIPAL AIRPORT IS OWNED AND operated by the City of Lee's Summit. The functional organizational chart, which includes planned staffing through 2021, is shown in Figure 1. As shown, the chain of command moves from the Lee's Summit Mayor and City Council down through the City Manager, to the Director/Deputy Director of Public Works, to the Airport Manager. Not shown are the other Public Works divisions, which include Engineering/Administration, Fleet, Operations, and Solid Waste. The Airport Manager is responsible for the members of his staff - six full time personnel - the Assistant Manager, two attendants, two Facilities Maintenance Worker II's, and one Service Attendant (concierge). The service attendant is a new position that was added in 2017 and serves as a concierge to answer phones, make reservations for rental cars, hotels, etc. There are an additional 2.3 full-time equivalent (FTE) airport attendants to cover for all the hours of operation. For the immediate future, the Airport has requested funding for another full-time line person and to increase the 2.3 FTE by 0.3. If fuel sales continue to increase, 0.5 of the part-time FTEs would need to be converted into a full-time position in 2021. Should these expansion plans proceed, the Airport would maintain 8 full time staff, and 2.1 FTE part-time staff members. All of this is subject to COVID-19 impacts, which may delay or accelerate plans. Although the direct line of authority shows only the LSPW, there are other City departments and committees involved in the management and operation of the Airport. Procurement & Contract Services are involved in the process of writing checks and invoicing customers at the Airport. Human Resources is involved in staffing the Airport. The City Council approves the official Airport If R.A. Wiedemann & Associates, Inc. in association with CMT 2-7 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I January 2027 rates and charges each year. The Board Of Aeronautic Commissioners (BOAC) is made up of 8 members and one City Council liaison, appointed by the Mayor pro tem and confirmed by City Council. This Board is charged with the following responsibilities: ► Review proposed annual budget for the Lee's Summit Municipal Airport, submitting recommendations to the City Council. ► Provide guidance and suggestions to Staff on the operation of the Airport. ► Review contracts, agreements, rules, regulations, safety issues, charges and fees pertaining to the operation of the Airport. ► Ensure compliance with applicable FAA regulations. ► Consider other matters deemed appropriate and submit recommendations on issues requested by the City Council. Functional Organization Chart In addition to the BOAC, three other City departments consider airport issues, including: ► Finance, which includes Procurement & Contract Services ► Human Resources ► Law Department These additional groups change the "formal" organizational chart by adding advisory functions to the tree. The value of an Airport's advisory committee (in this case the BOAC) is typically based on the make-up of the committee. If all sectors of the airport user community are not represented, recommendations coming from the committee can be skewed toward a limited number of special interest groups. Typically, these groups work best when representatives of different segments of Airport stakeholders are included. This often involves representatives from the political structure (e.g. City Council), pilots' groups, corporate aviation, economic development/chamber of commerce, and city planning. Figure 2-2 - Planned Staffing/Organization Chart (2021) If R.A. Wiedemann & Associates, Inc. in association with CMT 2-2 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 HE DAY-TO-DAY OPERATION OF THE Airport is the responsibility of the Airport Manager. The Airport Manager's position incorporates all facets of Airport administration along with responsibility for the equipment and maintenance of grounds at the Airport. The Airport Manager must have a working knowledge of Federal, State, and local laws and regulations relating to aviation. From an administrative standpoint, the Airport Manager supervises Airport staff, administers Airport security and emergencies, participates in the development of long-range capital development, and coordinates the financial responsibilities of the Airport with the Finance and Procurement & Contract Services. Currently, the Airport Manager is also responsible for participating in the planning and environmental processes at the Airport. The Assistant Airport Manager assists in these full-time and performs the duties of the Manager when he is absent. The Facilities Maintenance Worker II's perform ongoing maintenance, mowing, repairs to equipment, buildings etc. Anything beyond the Airport's capabilities is given to contractors to perform. Airport attendants are needed to staff the Airport during its working hours and operate the fuel concession. The Airport Service Attendant serves as a concierge and is a new position designed to support and serve higher -end business aviation customers. This involves many of the functions of a hotel concierge such as answering phone calls, making reservations for rental cars, hotels, and restaurants. Phones are forwarded to an Airport staff member afterhours to respond to any afterhours service request. The Concierge tracks the number of call -outs as a way to determine if the Airport has enough requests to lengthen the hours of operation. The Airport is open 24 hours per day, seven days per week. However, it is only staffed from 6:00 am to 7:30 pm in the winter and from 6:00 am to 8:30 pm in the spring and summer months. If the Airport remains open for an average of 14 hours per day, it must be staffed roughly 110 hours per week. Given that there are normally two personnel at the Airport at any one time, about 225 hours of staffing are needed each week. This translates into a minimum 5.625 full time equivalent employees. This total does not include the maintenance or management functions, which require another four FTE positions. In addition, these numbers do not allow for sick leave, vacations, or other absences by staff, that would naturally occur during the year. Recommendations concerning the management structure, staffing, and operation of the Airport are presented later in the report in Section 7 - Recommended Plan. Figure 2-3 - Hangar 1 Interior If R.A. Wiedemann & Associates, Inc. in association with CMT 2-3 Section 3 Airport SWOT Analysis Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT AIRPORT SWOT ANALYSIS 2027 SWOT (STRENGTHS/WEAKNESSES/OPPORTUNITIES/THREATS) WORKSHOP was held in the City Hall Howard Meeting Room B on February 7, 2020. A total of 17 participants representing a range of Airport and community interests were in attendance. The purpose of the SWOT Workshop was to provide an opportunity to better identify and understand the Airport operating environment. In this regard, the SWOT was not a strategy session. Rather, it was the preparatory step toward making strategic recommendations. Thus, the information generated in the SWOT about the Airport can be used to develop follow-on strategies for achieving the Airport's mission. The Airport Business Plan will serve as the vehicle to define strategies and will focus resources on the implementation process which will take place over the next twenty years. Figure 3-1 - SWOT Meeting ROM A DEFINITIONAL STANDPOINT, THE SWOT FOR Lee's Summit Municipal Airport involved the following: ► Strengths: Internal attributes of the Airport. These can include Location, Physical/Infrastructure, Managerial, Financial, Political, Brand, Competition, and "Other." ► Weaknesses: Internal attributes of the Airport. These also can include Location, Physical/Infrastructure, Managerial, Financial, Political, Brand, Competition, and "Other." ► Opportunities: External conditions that may be available to the Airport. These can include such items as Regional Business, On -Airport Business, Funding, Aviation Trends, Branding, and "Other." ► Threats: External conditions that may threaten the Airport's viability. This may include Funding, Operational Activity, Local Surface Access, Infrastructure, Brand, Competition, and "Other." R.A. Wiedemann & Associates, Inc. in association with CMT 3-1 Lee's Summit Municipal Airport Business Plan The Workshop began at 9:00 am and ended at 12:00 pm. Discussion topics included a wide range of issues including, but not limited to: ► Geographical Location ► Physical Layout ► Financial Sustainability ► Political Impacts ► Surface Access 19 LEES SUMMIT M I s s O U R I 2027 • Not a Strategy Session • Meeting to Identify Airport Operating Environment • Business Plan Will Use SWOT Results to Develop Strategies What • Simple Ground Rules' V V h at Is a 1. It is okay to disagree. SWOT? �'�I T? 2. All ideas are potentially good ideas. 3. We will honor time limits unless the entire group desires longer sessions. 4. What is said at the meeting should stay there (confidentiality). 5. Cell phones should be in the "off" position. ► Airport Amenities ► Airport Brand and Public Perception ► Airport East -Side Development ► Need for Control Tower ► Attraction of Corporate Aviation ► The Question of Mission and Vision The following sections summarize the discussions held at the Workshop concerning Airport Strengths, Weaknesses, Opportunities, and Threats. At the close of the session, participants were asked to rank their top three items of importance within each category. The cluster of rankings provided the means to prioritize the attributes described below. 3.2.1 AIRPORT STRENGTHS I Airport Strengths are considered internal or inherent attributes of the Airport. The following Strengths were identified during the Workshop by participants. Within each category, the points are listed in rank order of importance: ► Geographical Location: ♦ There are abundant developable areas on -Airport and near -Airport. ♦ LXT is the geographic center of the United States. ♦ Quick access to downtown Lee's Summit and downtown Kansas City and quick access to rest of metropolitan area via a strong highway network. ♦ Located in the economic center for region. ♦ Weather tends to be aviation friendly. ♦ Airport is available to high percentage of population in greater metro area. ♦ Highway access without significant congestion. Potential for Airport access on all sides. ♦ With a total land area of 65.6 square miles, Lee's Summit is larger than St. Louis. ♦ Nearby cities, including Warrensburg, Clinton, Blue Springs, and Independence rely on LXT. �M� R.A. Wiedemann & Associates, Inc. in association with CMT 3-2 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT Physical Layout: ♦ Similar to Geographic Location - Abundant developable areas on - Airport and near -Airport. ♦ Good approach procedures and good access in all wind directions. ♦ Good pavement conditions. ♦ Vertical obstructions aren't significant. ♦ Airport elevation. At 1,000 ft. it's one of the highest spots in the KC Figure 3-2 - Airport Runway 18-36 area and this helps with fog and potential obstructions from development surrounding the Airport. ♦ Full parallel taxiways help with safety and capacity, including Taxiway C, which opens landside development on the East side. 2027 ► Managerial/Political: ♦ Very engaged staff and management. ♦ Economic Development Council deeply involved with Airport growth. ♦ Good collaboration between Airport and City. Relationships provide a deep well of expertise. ♦ Staff has consistent, long serving, institutional knowledge. ♦ City Council recognizes the Airport's value. ♦ Resources committed from City to attend necessary aviation conferences ♦ Quick response time at City to take advantage of opportunities at the Airport. As an example, when the City purchased Hangar One, the City Council moved quickly to approve the deal. ♦ City lobbyist promotes the City and Airport at the State legislative level. ► Operations: ♦ The Airport has an enterprise fund designation. ♦ Airport management makes good use of resources. ♦ Perceived value with the public for the Airport goes beyond operational revenues. ♦ Staff willing to meet and facilitate growth, coming up with creative solutions. ♦ Airport hangars are at 100 percent occupancy. ♦ There are four GPS approaches (all runways). ► Airport Brand: ♦ Good personalized service. ♦ Age of the Airport. It is well established, and pilots from the region know where it is. ♦ City of Lee's Summit receiving recognition and awards from ACPA, and APWA — helps Airport brand via association. ♦ City has branding efforts that market the city as a place to do business. �M� R.A. Wiedemann & Associates, Inc. in association with CMT 3-3 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 ► Competitive Advantage: ♦ Airport has remained stable and grown as other airports in the region have declined. ♦ Many nearby airports do not have the financial support that LXT enjoys. ♦ Main competition is the Wheeler Downtown Airport, where they can compete for fuel sales. ♦ Infrastructure with a 5,500 ft. runway. Wheeler Downtown and New Century are the only real competitors forjet operations. ♦ Strong GA training community at Lee's Summit. ♦ Airport is consistently able to receive grants and make improvements that help compete with airports that are not as engaged. 3.2.2 AIRPORT WEAKNESSES I Airport weaknesses were identified as a part of the SWOT workshop process. These are internal attributes of the Airport and are listed below in rank order of importance within each category by the SWOT participants: ► Location/Physical Layout: ♦ Lack of control tower, which puts high-performance jets with training aircraft on two active crossing runways. ♦ Most developable land on the Airport is not shovel ready. ♦ Major residential development nearby. ♦ There are four schools under the flight paths to the approaches of all four runways. ♦ Terrain limitations on east side, with significant dirt fill necessary for development. ♦ Internet isn't provided at the Airport. ♦ Land west of the Airport is not within Lee's Summit's jurisdiction/zoning. ♦ Lack of interior perimeter road. ♦ Limited ground access to tenant hangars. ♦ Runway 18/36 needs run up and turn out area. ♦ Lack of natural gas and sewers to hangars on the west side. ♦ Lack of 3 phase power, which is essential for large aircraft and support equipment. ► Managerial/Political/Financial: ♦ Constraints on funding. ♦ More staff needed for growth. ♦ Not able to control development beyond Airport property. ♦ Airport thriving on the work of two management staff members (John and Joel), with demands too great to be sustainable. ♦ Unrealistic expectations involved with being an Enterprise Fund. If the Airport runs a deficit, public opinion of the Airport goes down. �M� R.A. Wiedemann & Associates, Inc. in association with CMT 3-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT Operational/Brand/Competition: ♦ The name "Municipal" and "Lee's Summit" are perceived as weaknesses by corporate pilots. ♦ Need to quantify economic impact of the Airport and total value of the Airport to community (current lack). ♦ Need state-of-the-art pilot amenities such as lounge, and flight planning areas. Figure 3-3 - Avgas Fueling Operation at LXT ♦ Lack of newer crew cars. ♦ Lack of access to rental cars. ♦ Lack of parking near Hangar One. ♦ Need modern, reliable snow removal equipment. ♦ Lack of modern, reliable jet fuel trucks. ♦ No real viewing area for the general public to come out and watch operations. ♦ No meeting or conference rooms 2027 ► Other: ♦ Inadequate signage to the Airport. ♦ Lack of strong champion for the Airport. There are lots of supporters of the Airport, but no one politically who has really taken the Airport and made it a platform. ♦ Need to improve aesthetics. ♦ Lack of accommodation for electric aircraft. ♦ No customs office to capitalize on Lee's Summit's location for direct access of international travel from Canada, South America, and the Caribbean. 3.2.3 AIRPORT OPPORTUNITIES I Opportunities that exist are considered external conditions that may be available to the Airport. Generally, these opportunities will require strategies and efforts to achieve. Most opportunities involve the market or additional services or facilities at the Airport. Participants in the SWOT Workshop identified a number of opportunities available to LXT. For each category, the points are listed in order of importance: ► Regional Businesses: ♦ A new, large hangar at LXT would boost the Airport's ability to draw corporate tenants to the Airport by providing them an option other than Wheeler Downtown and the two Johnson County airports. ♦ Development in the City will increase use of the Airport. ♦ Wheeler Downtown aviation operations may suffer with traffic delays surrounding nearby bridge construction. �M� R.A. Wiedemann & Associates, Inc. in association with CMT 3-5 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M 13 5 0 U R I January 2027 ► On -Airport Aviation Development. ♦ Opportunity to get the east side development right from the ground up — clean slate. ♦ Terrain doesn't preclude development. ♦ On -Airport restaurant that engages community maybe helpful. ► Aviation Education: ♦ AOPA school programs keep kids involved and benefits community. ♦ St. Michaels aviation education center is next door. ♦ High School student engagement fuels public relations marketing and branding. ► Funding/Airport Brand: ♦ Opportunity to develop corporate friendly identity. ♦ Technology -friendly facility for future development. ► Sports Opportunities: ♦ 2026 World Cup site. ♦ 2023 NFL Draft site. ► Metropolitan Conferences, Sports & Entertainment Opportunities: ♦ Chief and Royals professional teams ♦ Concerts (Musicians, Tech N9ne Recording Studio) ♦ Airport proximity to many concert and sports arenas makes it an ideal location for performers and concert attendees to utilize LXT. 3.2.4 AIRPORT THREATS I In this context, threats to the Airport refer primarily to factors that would hinder its potential growth, development, and viability. Threats are generally external conditions to which the Airport is exposed. In some cases, unsolved weaknesses may develop into threats. Threats to Airport viability were listed by SWOT Workshop participants in each category by order of importance: ► Political Environment: ♦ Past efforts to shut down the Airport. ♦ Elections could bring about management changes in ways that reduce support for the Airport. ► Development: ♦ No air traffic control tower. ♦ Electronic interference from nearby cell towers. ♦ Runway light issues/electrical vault relocation. I R F R.A. Wiedemann & Associates, Inc. in association with CMT 3-6 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 ► Funding: ♦ Always dependent on outside influences. ► Safety/Noise: ♦ Noise and residential development are always at odds. ♦ Formation flying over the Airport and surrounding areas is disconcerting to some. ► Demographic Issues: ♦ The Airport/community is threatened if they do not attract greater diversity. ♦ Transfer of wealth with businesses that could move. O SUMMARIZE THE SWOT WORKSHOP RESULTS, A graphic representation of the process was developed that shows the relationships between the components of the analysis. Figure 3- 4 shows four quadrants, each representing one area of the SWOT. The axes of the quadrants indicate the degrees of flexibility or change for each of the SWOT components. The center of the graphic represents the highest degree of flexibility or ability to change, whereas the outer edges represent the greatest inflexibility or lack of ability to change. Components that are located on an axis show that, depending upon how they are addressed, can move from one SWOT category to another. For example, the need for an airport brand that reflects a corporate -friendly identity is both a Weakness and an Opportunity. If the Airport updated its current brand, then the Opportunity is fulfilled, and it is no longer a Weakness. The future brand, consistent with attracting more corporate aviation will then move into a Strength for the Airport. Similarly, the need to utilize developable land is currently a Weakness and an Opportunity. When expansion to the East Side occurs in both infrastructure and services, it will cease to be a Weakness and ultimately become an Airport Strength. Overall, the SWOT Workshop highlighted the key issues for the Airport and its operating environment. The Airport Business Plan will use the results to develop strategies for building on strengths, overcoming weaknesses, taking advantages of opportunities, while minimizing threats to the Airport's future operation. I R F R.A. Wiedemann & Associates, Inc. in association with CMT 3-7 Lee's Summit Municipal Airport 19 IT Business Plan BEM S S 0 U R I 2021 Business Development Geographic Center ofAmerica on East Side es Downtown Airport Potential has Thrive to forft2one Good Basic Weather and Elevation Infrastructure �� Aviation Friendly Pdue Lack of Competition Education Partnerships Development in City Numerous Development ' Highway Access to Options on and around Airport will Increase New Large Hangar Markets & Downton with Quick Access via Airport at Airport would Boost Airport Good Approaches and Uncongested Highways Access in Mast Conditions On Airport 2023 World Cup Site Restaurant Good Relations with FundingSources Easily Accessible to High % of Population and 2023 NFL Draft Tech Friendly Facility 100% Occupancy and Business for Future Development Aviation Engaged Development Staff and Ccmmunit and Development y Airport Growth Develop a Corporate Development Management Around Airport g Political Support Friendly Identity Opportunities Need Parking Center Reputation for 1101 Active Flight Economof Near Hangar 1 Newer Crew Cars Good Service Regionii Airport Name Perceived as Airport Always One Election Branding Runway g Major Residential Need Improved Weakness Development and R Utilities on East Need Improved Light Issues away from Hostile Management School Nearby and West Sides Signa e Dodged Past Efforts Aestthetticsics Lack of Public ort to Shut Down Airport Understanding R Need ImprovedAcCes to Tenant Hangars Risk of Burn Out Mo ��� for Key Personnel �� r F,Qj Electronic Interference Need More Staff from Cell Towers Most Developable Many Needs Land not Shovel Ready West Side Outside Weather Fence Controlled Noise and 8 Natural Limited Funding by KC Residential Need Improved �` Equipment, Facilities, ( Not Passible to Improve and Amenities Encroachment Disasters Formation Flying Causing Added Crosswind Runway V Noise Issues National Need Economy Control f Tower Funding Dependent is It! t Unable to Control Develppment upon Outside Sources Outside of Airport Property Figure 3-4 - SWOT Graphical Summary 111' R.A. Wiedemann & Associates, Inc. in association with CMT 3-8 Section 4 Airport Market Analysis & Rates and Charges Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT AIRPORT MARKET ANALYSIS & RATES AND CHARGES January 2027 N AN ATTEMPT TO MINIMIZE REDUNDANCY WITH the Lee's Summit Airport Master Plan, this section discusses the existing characteristics of the Airport from a business point of view. That is, instead of focusing mainly on physical attributes of the Airport, this Section examines the market factors that will impact the Airport's ability to generate revenue now and in the future. Although some facilities are covered in this section (such as hangars and hangar development), it is with an eye toward revenue production. As such, this Section addresses the following topics: ► Airport Brand ► Market Position & Rates and Charges ► Impacts of Changing Aircraft Fleet Mix ► Assumed Impacts of COVID-19 ► Aviation and Non -Aviation Parcels for Development N AIRPORT BRAND IS THE PERCEPTION OF the airport by its customer base and stakeholders. Often, these are two different brands. Branding for the "_ - customer base often use airport �� r attributes that identify the geographic location of the facility and the levels of service provided. Branding for stakeholders, on the other hand, must convey the value of the airport to the community. Figure 4-1 - Cessna Twin Engine Aircraft at LXT Sometimes these branding messages can conflict, particularly when a name change for the airport is suggested. In this regard, a community may be set on advancing the name of its community, even if that community is not well known. This may inhibit customer outreach, which would require a more general geographic name, or a name associated with a larger local metro area. In the case of Lee's Summit, such distinctions might arise if Airport renaming considered the Kansas City metro or region brand. If R.A. Wiedemann & Associates, Inc. in association with CMT 4-1 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M I S S O U R I January 2027 4.2.1 CURRENT AIRPORT BRAND I Lee's Summit Airport's brand is the image it inspires in the minds of its customers and stakeholders. It consists of everything that makes up the customer experience, from the quality and condition of infrastructure, to availability of essential services, to each and every customer interaction. A truly great brand is built upon one gratifying customer experience after another. The 2008 Airport Business Plan identified issues limiting the Airport. Strategies for revenue enhancement were presented, along with recommendations for elevating LXT's services, amenities, and operational capabilities to attract a larger share of the profitable corporate aviation segment. A two -pronged branding and marketing initiative to increase awareness in the Greater Kansas City Region was also discussed, as well as outreach to transient operators outside of the area. To this end, the City has aggressively pursued key recommendations including a service class upgrade of the primary runway from 4,016' x 75' B-II (turboprop capable) to 5,500' x 100' C-II (jet capable). Removal of old hangars along the Northwest side of runway 18-36, allowed for development of a new parallel taxiway with proper separation for safe C-II operations. The City acquired a 40,000 square -foot heated hangar with a 20-foot tail clearance doorway, constructed a pilot's lounge and other essential amenities for corporate FBO services. Located near the official geographic center of the United States, with a jet capable primary runway, LXT is ideally situated to serve as a convenient refueling stop for itinerant corporate aircraft — outside of the busy airspace surrounding Kansas City International Airport (MCI). LXT has ample areas — on and adjacent to the Airport — for both aviation and non -aviation development. In short, LXT is poised for growth. An obstacle to the Airport's growth involves its existing brand identity as a "Municipal" airport with a "municipally" operated FBO. This perception was pointed out by LXT stakeholders participating in the SWOT in the previous section. Among corporate aviators there is a prevailing negative perception that municipally owned and operated FBO facilities are all too often staffed by unmotivated line crew and lackluster hospitality staff. Municipal facilities represent a significantly less desirable service option than more upscale privately operated FBOs. While the management and staff of LXT are clearly exceptions to this rule, for those who travel almost daily in the course of conducting business, this reputation is frequently reinforced industrywide. One outstanding example of a municipally owned and operated FBO is "GlobalSelect" GL""BALSELECT located at Sugar Land Regional Airport (SGR) in AT SVGAR LAND REGIONAL AIRPORT Sugar Land, Texas. SGR — located just southwest of Houston, Texas — serves as a reliever to crowded Houston airports. Recognizing the negative perception of municipally owned and operated facilities, the City of Sugar Land elected to change the airport name from Sugar Land Municipal Airport to Sugar Land Regional Airport. If R.A. Wiedemann & Associates, Inc. in association with CMT 4-2 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT They constructed a beautiful 20,000 square - foot terminal building filled with pilot and passenger comforts and amenities. Then — to further distance themselves from prevailing negative perceptions — they named their FBO "GlobalSelect". By operating the FBO as if it were a private luxury facility, they have built an outstanding reputation and customer base, and have collected numerous awards for excellence. SGR represents the pinnacle of outstanding municipally owned and operated airport facilities. Figure 4-2 - Hangar 1 at LXT January 2027 While initially it may be a stretch for LXT to match the exceptional facilities at SGR in the near - term, there are a number of assets already in place or well within reach. Competent, friendly staff focused on service is vital to building and maintaining an excellent brand. In this regard, the staff of LXT is highly dedicated and motivated toward excellence. There is an esprit de corps within the Airport staff and City leadership fueled by pride in the community and ongoing improvements at LXT. These key aspects of the LXT brand are in place and worth preserving. There is discussion of development on the east side with a new terminal building that would potentially include upgraded FBO facilities. This would further enhance the LXT brand. 4.2.2 AIRPORT COMMUNICATION TOOLS I In 2018, an Airport Marketing Plan was developed to help focus communications resources toward a segmented audience to help meet airport communication goals. The plan identified the current marketing tools utilized by LXT to reach potential users, including: • E-blasts (external lists) • News Releases • City Website (Airport page) • "In the News" Staff Newsletter • Booths at Tradeshows/Conferences • Social Media (Facebook) • Magazine Ads • Newspaper Ads (Examiner, LS Journal) • LS Chamber Calendar - ad for Open House in June • LS Chamber Catalyst Ads - published 4 times per year • LS Chamber Visitors Guide Ad - published 2 times per year • LS Chamber Community Profile Ad - published once a year • Banners advertising Open House, airport events • Radio (earned media, Royals sponsorship) • Lakewood Neighborhood Newsletter If R.A. Wiedemann & Associates, Inc. in association with CMT 4-3 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 • Presentations to aviation groups • Fly Friendly Brochure (fact sheet, targeted to pilots) • Letters to Tenants • Airport Line Service emails - inform pilots/tenants of changing conditions at the airport (construction, etc.) • Digital Billboards (used for Open House) • LSTV • NATA—National Air Transportation Association (are we a member?) - ad in Aviation Business Journal • Airport Open House (1,500 attendees) • Tenant Meetings • Conferences - NBAA-BACE put ad in Show Guide, Show News Q months leading up to event), 2 articles, airport profile ($8K). • Schedulers & Dispatchers (February) - booth w/ postcard handouts • NBAA Business Aviation and Conference Expo Show Guide • Pilot Safety Meetings (150 attendees) - held by others, opportunity to market? • Oshkosh Fly -In - cookout • Big Truck & Equipment Show - booth at event • LS Chamber Before Hours The Airport's electronic newsletter - The Flyover— is utilized to help people stay up to date on the latest news, airport improvements, pilot gadgets and events happening at the Airport. The Flyover is published monthly. As of 2020, there are 967 airport subscribers, as well as 548 email addresses captured at the Schedulers and Dispatchers Conference. The City newsletter currently has 2,058 subscribers. The Airport has reduced the amount of print advertising, choosing to focus on digital advertising. For print advertising purposes, LXT participates in some Lee's Summit Chamber publications. Advertising for the Airport Open House in the Lee's Summit Chamber of Commerce newsletter, a one -page profile of the airport in the Lee's Summit Relocation Guide, an advertisement in the City map and airport information in the Visitor's Guide under transportation. In September 2019, the airport began a digital campaign "Experience the Lee's Summit Municipal Airport (LXT). Your Gateway to Kansas City," using targeted advertising to attract new customers to the airport. Using device information captured through geofencing, the airport was able to target potential customers. In addition to the digital campaigns, digital ads on aviation websites such as AirNav continue. The existing LXT website is functional and attractive. The photographs used are illustrative and appropriate. One critique involves the need for higher resolution pictures. When viewed at full screen resolution — on a PC monitor — the photos appear out of focus. This could be due to use of image files at a lower resolution than is needed. The short video featured on the main page contains good information but appears dated due to its maximum resolution of 480 lines. Not to If R.A. Wiedemann & Associates, Inc. in association with CMT 4-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 be overly critical, but this is about one -fifth the resolution of HD video — which corporate customers are accustomed to viewing. These clips should be updated and upgraded to full HD in order to put the Airport's best foot forward. Another potential limitation is the site being wrapped within the overall the City of Lee's Summit website. From a local government perspective, this is clearly a solution based upon immediate practicality. From a branding standpoint however, this merely accentuates the prevailing view of "Municipal" airports as a negative among the most desirable customers. Many corporate users expect a standalone website, which tends to separate the airport from its municipal roots. In summary, LXT has many quality improvements, people, and factors in place upon which to build a solid brand. In order to attain the client base and ultimate success for the City and region, LXT must take deliberate steps to shed the negative stereotype of being a "municipal" facility. 4.2.3 CONSIDERATIONS FOR FUTURE AIRPORT BRAND I To circumvent the negative stigma associated with municipal operations, it is strongly recommended that the City consider implementation of a new Airport name that would replace "Municipal" with "Regional" or "Executive." ► Lee's Summit Regional Airport ► Lee's Summit Executive Airport While it is understood there is great pride and history in the Lee's Summit name, from a practical standpoint the name of the City is not as widely known nationally — nor is it as easily located geographically — as its larger neighbor Kansas City. From the practical standpoint of increasing itinerant operations among corporate aviators, the most immediately geographically recognizable identity would incorporate "Kansas City" in the Airport name. It must be pointed out that "Johnson County Executive Airport" is located approximately 20 miles west and slightly south of LXT. Adopting the name Kansas City Executive Airport could be a significant strategic branding advantage for LXT. ► Kansas City Regional Airport ► Kansas City Executive Airport ► Greater Kansas City Regional Airport Future branding at the Airport should also consider its website. These considerations include fresh branding elements — such as name, logos, and colors. It is believed that an independent website entirely devoted to the Airport would serve to improve the brand. This standalone Airport website may be linked to — and even prominently featured within — the City website. The City would maintain full control of the Airport website, while helping to position the Airport as a destination of choice for corporate aviators. If R.A. Wiedemann & Associates, Inc. in association with CMT 4-5 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 As a new identity, logo, and colors are established, • Lee's Summit Regional Airport improved directional signage f� to the Airport will further assist r ���ntl � � • Lee's Summit Executive Airport in establishing the new brand. Brand Names `Kansas City Regional Airport Ultimately, the Airport and City • Kansas City Executive Airport should consider a focused • Greater Kansas City Regional Airport marketing plan that will reach itinerant corporate customers, as well as persuading regionally based jet aircraft to relocate to LXT pending new hangar development. A new video extolling the virtues of LXT's improved facilities and infrastructure, as well as the quality of life and benefits of locating in Lee's Summit should be considered, along with a colorful brochure, fresh new business cards, and logo apparel for Airport staff. HE AIRPORT SERVICE AREA IS GENERALLY DEFINED as the geographic region served by an airport. For Lee's Summit Municipal, this area was assumed to extend to a 30-minute drive time surrounding the Airport. This area encompasses the Kansas City market area and includes three airports shown in Figure 4-3. In addition, seven airports outside the within an hour drive time (greater service area) were included to allow a larger database of airport information. ► Area Airports with Runway Lengths Below 5,000 Feet: ♦ East Kansas City ♦ Skyhaven Airport ♦ Johnson County Executive ♦ Lawrence Smith Memorial ♦ Higginsville Industrial Municipal ► Area Airports with Runway Lengths 5,000 Feet and Above: ♦ Lee's Summit Municipal ♦ Charles B Wheeler Downtown ♦ Midwest National Air Center ♦ New Century AirCenter ♦ Kansas City International To better market and attract corporate and private aviation customers to LXT, it is important to compare the relative market draws between the available airports within the market area. In this regard, rates and charges for airport use is one of many metrics used by aircraft users to determine which airport is most attractive to use. The factors discussed in this section include the following: If R.A. Wiedemann & Associates, Inc. in association with CMT 4-6 Lee's Summit Municipal Airport 19 Business Plan LEES S<0MMIT Figure 4-3 — LXT Service Area ► Facilities ♦ Airport Size ♦ Runway Length ♦ Approaches ♦ Air Traffic Control Tower ► Based Aircraft ♦ Number and Type of Based Aircraft ► Service Offerings ♦ Airframe and Powerplant Repairs ♦ Flight Instruction, Charter Service, Aircraft Rentals ♦ Avionics, Aircraft Sales ♦ Aerial Spraying ♦ Air Cargo, Airline ♦ Air Ambulance January 2027 l of R.A. Wiedemann & Associates, Inc. in association with CMT 4-7 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT ► Rates and Charges ♦ Tie -Downs ♦ T-Hangars ♦ Conventional Hangars ♦ Lease Rates ♦ Avgas and Jet Fuel January 2027 The airports included within the Kansas City area are relevant to any comparison of facilities, prices, and services available at LXT. This database of airports provides a good basis for comparing regional pricing, the impact of fleet mix on facilities and services, etc. For this reason, they are included in the competitive market assessment. 4.3.1 FACILITIES I Table 4-1 provides a comparison of service area and greater area airport facilities. Of the ten listed airports, five have runways of 5,000 feet or greater, which makes them the best candidates for business jet activity. Kansas City International has the longest primary runway in the service area at 10,801 feet by 150 feet. New Century AirCenter has the longest non -airline or military airport runway in the service area with dimensions of 7,339 feet by 150 feet. Figure 4-4 - Runway 18-36 Looking North In terms of airport property, there were two airports with over 1,000 acres, the largest being Kansas City International with 10,680 acres. At 529 acres, Lee's Summit Municipal's size is in the mid- range for non -airline airports in the service area. Every airport in the service area has instrument approach procedures of some type. Four of these airports have ILS approaches and four airports have Air Traffic Control (ATC) towers. Compared to other airports in the service area, Lee's Summit Municipal is adequately positioned to compete with other jet -capable airports in terms of runway length and is on the mid -to -lower end in terms of property acreage and instrument approaches. One amenity that would help LXT compete for businessjet activity would be an Air Traffic Control Tower. 4.3.2 BASED AIRCRAFT I As of April 2020, there were a total of 795 based aircraft at service area airports. The majority of based aircraft (74.0 percent) were single engine aircraft. Jet aircraft made up 9.4 percent of based aircraft, multi -engine represented 12.8 percent, helicopters represented 1.5 percent, and aircraft If R.A. Wiedemann & Associates, Inc. in association with CMT 4-8 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 designated as "other" represented the remaining 2.3 percent. Of the 75-jet aircraft in the service area, 65 (86.7 percent) were located at Charles B Wheeler Downtown. Lee's Summit Municipal had the second highest based jets in the service area, with 4. In total, there were 137 aircraft based at LXT, comprised of4jets, 120 single engine, 9 multi -engine, and 4 helicopters. 4.3.3 AVIATION SERVICES I Table 4-2 presents the availability of various aviation services at each of the area airports. Every airport offers some form of airframe and powerplant repairs except Kansas City International and Midwest National Air Center. Lawrence Smith Memorial and Skyhaven Airport are the only airports that offer minor repairs for airframe and powerplant, while all others offer major repairs, including Lee's Summit Municipal. Seven airports offered flight instruction and aircraft rentals (Kansas City International, Midwest National Air Center, and Higginsville Industrial Municipal offered neither). Five airports offered aircraft sales, and five airports offered charter service. Four airports offered avionics. Lee's Summit Municipal offers flight instructions, aircraft rentals, and is one of only three airports in the service area that offer Air Ambulance service. With these offerings, LXT is on the mid -to -lower end of services offerings compared to the other non -airline airports within the service area. 4.3.4 AIRPORT LEASE RATES I Rates for Monthly tie -down spaces were available at seven service area airports. As shown in Table 4-3, the prices for monthly tie -down spaces range from $26 at Skyhaven Airport, to $75 at New Century AirCenter. Eight airports in the service area had T-hangars on the field, however only Charles B Wheeler Downtown had T-Hangars currently available for rent. Monthly T-Hangar rates ranged from $66 per month for open -style T-Hangars at Skyhaven Airport to $368 at Charles B Wheeler Downtown. Monthly rates at some airports depend on age and condition of the T- hangars and can vary widely between airports and even on the same airport. Lee's Summit Municipal is in the upper end of the spectrum for prices on T-Hangars in the service area, starting at $345 per month. Conventional hangar space includes box hangars, community hangars, and larger clear -span hangars. Eight airports in the service area had conventional hangars on the field. Of these, only three airports with community hangars had space currently available for rent on a monthly basis. All box hangars in the service area have waiting lists for potential users. The conventional hangar prices at Lee's Summit Municipal start at approximately $550 per month to occupy If R.A. Wiedemann & Associates, Inc. in association with CMT 4-9 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 shared space in Hangar 1. This pricing is consistent with rates at the other airports in the service area. Charles B Wheeler Downtown listed the highest starting prices for conventional hangar prices in the service area, starting at $1,660 per month for a box hangar. 4.3.5 FUEL PRICES I It should be noted that all fuel prices change frequently, therefore the following narrative and associated table were compiled on the same day — May 4, 2020 - for the most accurate snapshot. All information regarding fuel prices was compiled from www.airnay.com. Lee's Summit Municipal was the only airport offering Mogas within the service area. Self -serve Avgas is available at seven of the airports within the service area. The highest per gallon price was $4.85 at New Century AirCenter. The lowest self -serve Avgas price was $2.99 per gallon at Midwest National Air Center. The average price per gallon for self -serve Avgas in the service area was $3.71. Full -serve Avgas was available at six airports in the service area. The average price for full -service Avgas was $5.21 per gallon. The lowest full -serve Avgas was $4.31 at Skyhaven Airport. The highest per gallon price was $6.10 at Kansas City International. Lee's Summit Municipal offered the second lowest prices for full -service Avgas at $4.33 per gallon. East Kansas City was the only airport that offered assisted self -serve Jet Fuel, at a price of $3.25 per gallon. Full -serve Jet Fuel was available at seven airports within the service area. The average price for full -service Jet Fuel was $4.43 per gallon. The lowest price was $2.77 at New Century AirCenter. The highest price was $6.41 at Kansas City International. Overall, Lee's Summit Municipal's fuel prices were below the average fuel prices within the service area. If R.A. Wiedemann & Associates, Inc. in association with CMT 4-70 H no NN LLI W i 0 ck a a Ul H J m 0 0 V) cu LA a)Z O O Ln O 0 Z } } Z Z } >- Z Z a s a a J J a a • C7 C7 — C7 C7 — — — l7 C7 x x x x x x O Ln CD 1.0 O O O O Lf1 O N O 0 O 0 Ln E;O O r- N N O rn Lfl — 00 N L(l Lr 0) N x x x x x x x x x x O I- r O 00 O N 1 O 0CD — O O kD CD O O O N L!1 rn � CD r CD CD M LIl 00 LIl O rl-H L'— Ln Lr 00 — k.0 O O It Lfl Ln M — r, — cV 4 Il • rn O 00 L.0 V a) N LO • ' N O O • O rQ Lrl 00 00 l0 O 01 N O L.0 N � M cV dl fV M L.D O M ' O � O O M N O O ON O O 00 O lD N r- kR O CD N O N L) LJ LJ Y v_ v_ v Y v 7 7 7 7 7 7 7 7 : 7 • o! 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The extension of runway 18-36 to 5,500 feet has enabled larger business jets to use the facility. The current four based jets have all moved to LXT since the runway extension. Prior to 2017 the majority of LXTjet fuel sales were to the two turbo -propeller aircraft based at the Airport. 4.4.1 HANGAR DEMAND I Historically, the mix of aircraft has been around 10 piston twin engine aircraft and the rest single engine piston. The highest count of based aircraft over the years has been around 180, with the number hovering between 153 and 173 prior to 2018. The removal of seven T-hangar buildings in 2018 reduced available space by 68 units. This was partially offset with the additional new hangars providing an additional 28 spaces. Figure 4-6 - T-Hangar Rows at LXT Limited hangar space has constrained the fleet mix at LXT, as there are continual requests from outside turboprop and turbojet operators for space. The anticipated development of Hangar V will accommodate an additional three to four business aircraft. Thus, for the future, the Airport will continue to attract a larger business fleet. This growth in business aviation will bring significant increases for fuel sales, along with greater demand for executive transportation services at the Airport. In short, the business model will change from that of a small municipal airport to that of a regional/executive airport. 4.4.2 FUEL SALES I The changing fleet mix has had its greatest impact on fuel sales since 2017. In this regard, jet fuel sales have more than doubled in the short period. Table 4-4 shows the growth in fuel sales since 2017. Records for FY 2020 were only available through February (2/3rds of the fiscal year, ending June 30) at the time of this writing. Prior to the impacts of the COVID-19 epidemic, fuel sales were on track for at least 250,000+ gallons — a record year. Jet -A sales had already surpassed all of 2019. If R.A. Wiedemann & Associates, Inc. in association with CMT 4-74 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I Table 4-4 - Fuel Sales Growth January 2027 From an historical perspective, small jets have been using the Airport since the runway was lengthened to 4,016 in 1994. Operations of jet aircraft were limited due to the length, no fuel truck until 2010, and no hangar facility in which to park overnight. Once the runway was lengthened and hangar space became available, jet traffic has grown significantly. Currently, based customer jet fuel sales make up about 40 percent of the total, with the majority of jet fuel sales going to transient aircraft. 0 NE OF THE GREATEST ECONOMIC DISRUPTIONS IN U.S. history has been caused by the COVID-19 pandemic. It has created a worldwide recession in a matter of weeks. How long and how deep the recession goes is unknown at this time. Therefore, only assumptions about the impacts can be made. However, one thing is certain — there will be an end to the pandemic, either through natural processes or by therapeutic medicines. With talk of a vaccine available by 2021, it is assumed that the economic disruption will last up to one year. However, because of the economic damage done in the meantime, the recovery may take much longer to return to the pre-COVID-19 levels. For this Airport Business Plan, the following assumptions have been made regarding impacts of COVID-19: Factors Affecting Demand: Social distancing, mandatory 14-day quarantines, and stay-at-home orders will, in the short run, diminish general aviation demand significantly. When these restrictions are in place, demand for most other services are curtailed, which in turn, impacts the demand for air transportation services. Disruption Period: The length of duration of the economic "lock down" will be determined by how quickly medical treatments can be implemented. In addition, there may be some medical test developed which signifies an immunity to the virus. Such a test would allow those with immunity to reenter the workforce. It is assumed that the longest period of shut down will be one year. #& e Economic Restart: It is likely that the economy will be restarted in stages prior to pfte the one-year timeframe. Some essential businesses will not close such as food stores, medical facilities, etc. Other businesses such as sports venues, restaurants, and other retailers will come back online as protocols are developed. These protocols may involve giving more freedom to those at low risk, versus high risk population segments (elderly, immunocompromised). If R.A. Wiedemann & Associates, Inc. in association with CMT 4-75 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I January 2027 Recovery Time Period: Return to demand levels of 2019 will take some time. It is assumed that it will take a full year (all of 2021) to recover to 2019 aviation activity levels. Thus, 2022 will be the first year to equal or surpass 2019 fuel sales and other aviation activity levels. Any of these assumptions could be proven wrong by actual events. However, for planning purposes, these will govern the projections for revenue and expense generating purposes. The availability of aviation and non -aviation development parcels on Airport property will influence the potential to generate revenue. Two large parcels of Airport property have been identified as potential non -aviation developable land. These parcels do not have access to the airfield and cannot ever be used for aviation purposes. Rather than let them sit idle, the Business Plan recommends the conversion and use of the land to revenue producing property. Figure 4-7 shows the location of these developable parcels. Their descriptions include: ► North Side Parcel: This parcel is located along Strother Road and includes roughly 16 acres of property for potential development. Because of terrain slopes, development uses will need to be carefully planned. ► South Side Parcel: This parcel is potentially accessible from NE Town Center Boulevard. It contains approximately 30 acres and it also has some terrain sloping, but not to the degree as the North Side Parcel. Later, in Chapter 6, the market conditions and likely development scenarios for this property will be explored. If R.A. Wiedemann & Associates, Inc. in association with CMT 4-76 Lee's Summit Municipal Airport 19 Business Plan LEES S<0MMIT Figure 4-7 — On -Airport Non -Aviation Development Areas January 2021 job R.A. Wiedemann & Associates, Inc. in association with CMT 4-77 Section 5 Baseline Financial Projections Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT BASELINE FINANCIAL PROJECTIONS January 2027 HIS SECTION IDENTIFIES HISTORICAL REVENUES AND EXPENSES at LXT and projects those revenues and expenses to FY2040. This projection only considers a baseline scenario with no new revenue enhancements included. This projection of financial performance is designed to answer the question, "How will the improvements recommended in the Master Plan and Business Plan impact the current growth of Airport revenues and expenses?" In a later section, projections of financial performance will be presented that incorporate recommendations from both Plans. To address baseline projections, this section is organized as follows: ► Historical Revenues ► Historical Expenses ► Baseline Forecast of Revenues and Expenses XT IS OWNED AND OPERATED BY THE City of Lee's Summit. LXT operates as an enterprise fund and has been working toward financially self-sufficiency for a number of years. Revenues generated from use are dedicated by federal, state, and local law to fund LXT's operations, maintenance, and capital costs. All airports that are recipients of federal grant funding are obligated to establish a fee and rental structure that makes LXT as financially self-sufficient as possible under airport specific circumstances. Information concerning historical revenues and expenses for LXT was provided by Airport Management for FY2015 through FY2019. For purposes of this analysis, this most recent five-year data history was used because it represents the relevant historical financial performance of LXT. In addition, these data are most applicable for financial forecasting because they give some indication of the recent trends. Table 5-1 shows the historical revenue as documented in the income and revenue spreadsheets provided by LXT. Revenues from Airport operations are derived from the following: ► Fuel Sales: These revenues are derived from the City -operated fuel farm and include Jet A, 10OLL Avgas, and Unleaded fuel sales. ► Lease Revenues: This includes hangar rent, ground leases, tiedowns, and facility lease revenue. If R.A. Wiedemann & Associates, Inc. in association with CMT 5-1 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 ► Miscellaneous Revenues: This category captures all revenue that is not attributable to the other categories. Table 5-1 - Historical Revenues Operating Revenues Lease Revenues FY 2015 $728,383 FY 2016 $672,008 FY 2017 $585,124 FY 2018 $764,967 $929,252 Fuel Sales $565,809 $574,884 $678,025 $675,280 $767,879 Miscellaneous Revenues $26,733 $23,713 $30,335 $40,809 $23,724 Total Operating Revenues $1,320,925 $1,270,605 $1,293,484 $1,481,056 $1,720,855 Non -Operating Revenue FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 State Grants $16,882 $140,741 $0 $76,582 $73,973 Federal Grants $641,519 $2,273,756 $4,008,446 $5,506,361 $1,331,516 Sale of Property $10 $0 $0 $826,591 $2,551 Investment Earnings $19,105 $41,458 $9,063 $15,861 $79,279 Total Non -Operating Revenues $677,516 $2,455,955 $4,017,509 $6,425,395 $1,487,319 Total Revenues $1,998,441 $3,726,560 $5,310,993 $7,906,451 $3,208,174 Also included in Table 5-1 are the non -operating revenues associated with LXT. These revenues include capital development grants from the State and the FAA. Revenues from the sale of property are also included in this category, as well as income generated from investment earnings. It should be noted that non -operating revenues costs are just that — they are not generated from Airport operations. In order to determine what LXT itself is generating, the analysis will focus on and compare operating revenues with operating expenses. For purposes of the Business Plan, the ability of LXT to generate revenues and cover operating costs is the primary concern. In this regard, surplus operating revenues can be used to pay the local share of capital development or other non -operating costs. Even if shifts or increases to the revenue base can be made, there still may be forecast shortfalls for capital improvement needs. Therefore, it is important for the Business Plan to anticipate the scope of financial need and present that to the City as far in advance as possible. From the historical financial information, the operating revenues from fuel sales declined from FY2015 to FY2017, but increased FY2017 to FY2019 by such a margin (26 percent per year) that fuel revenues increased by an overall average of 6.3 percent for the five year period. The dramatic recent increase in fuel sales is attributed to the completion of the runway extension project. Lease revenues have shown an average growth of 7.9 percent per year from FY2015 to FY2019, with the largest increase occurring after the completion of the runway extension and the purchase of Hangar 1 by the City. Overall, historical operating revenues grew from $1,320,925 in FY2015 to $1,720,855 in 2019 — a total increase of 30.3 percent (6.8 percent annual growth rate). w R.A. Wiedemann & Associates, Inc. in association with CMT 5-2 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I Historical Operating Revenues $1, 000, 000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100, 000 $0 Fuel Sales Lease Revenues Figure 5-1 - Historical Operating Revenues by Type. Table 5-2 - Operational Revenue Ratio by Category M Miscellaneous January 2027 ■ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Year FY 2015 Fuel Sales 55.1% Lease Revenues 42.8% Miscellaneous 2.0% Total $1,320,925 FY 2016 52.9% 45.2% 1.9% $1,270,605 FY 2017 45.2% 52.4% 2.3% $1,293,484 FY 2018 51.7% 45.6% 2.8% $1,481,056 FY 2019 54.0% 44.6% 1.4% $1,720,855 In FY2019, fuel sales accounted for 54.0 percent of Airport operating revenues (Table 5-2). Lease revenues accounted for 44.6 percent of Airport operating revenues in FY2019, which follows a decline in the overall percentage share of revenues from FY2017 At that time, lease revenues represented the largest income category at LXT at 52.4 percent. As more itinerant aircraft chose to use Lee's Summit for refueling purposes, fuel sales grew to become the largest source of revenue for LXT. Figure 5-2 graphically illustrates the percentage shift in operational revenues by type for comparison years FY2017 and FY2019. w R.A. Wiedemann & Associates, Inc. in association with CMT 5-3 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S() lJ R I January 2027 FY2017 Operating Revenue by Type FY2019 Operating Revenue by Type 2% o Fuel sales 53% o Lease Revenues 4595 v Miscellaneous Figure 5-2 - Comparison of Historical Operating Revenue Category Splits o Fuel sales Y Lease Revenues u Miscellaneous Figure 5-3 shows a breakdown of Airport fuel revenue by type. For fuel revenue, the income is evenly split between 10OLL Avgas and Jet A fuel income. While 10OLL is currently the highest source of income in this category, the percentage of Jet A fuel revenue has increased from 37 percent of total fuel sales in 2017 to 46 percent of total fuel sales in 2019. The increase in Jet A fuel sales as a percentage of total fuel sales is expected to continue because of continued attraction of business and corporate aviation. FY2017 Fuel Revenue by Type `3% Y Unleaded 37% o Jet Sl% w 10OLL Figure 5-3 - Comparison of Historical Fuel Revenue by Type FY2019 Fuel Revenue by Type 3% o Un I eaded NJet A N 10OLL Figure 5-4 shows a breakdown of Airport lease revenue by type. While Airport property covers a large area with 486 acres of land, the majority of lease revenue is currently made up of hangar rentals. Large portions of Airport property are undeveloped, which accounts for the smaller percentage of ground lease income. From 2017 to 2019, tiedown fees have increased as a percent- FY2017 Lease Revenue by Type 61 Hangar Rent d Tiedown Fees u Ground Lease aFacil fty Rentals Figure 5-4 - Comparison of Historical Lease Revenue by Type FY2019 Lease Revenue by Type 11%— 0% Y Hangar Rent ■ Tiedown Fees r Gro u nd Lease iiiii Facility Rentals w R.A. Wiedemann & Associates, Inc. in association with CMT 5-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 age of lease revenue due to the increase in itinerant Airport users. Ground leases have also increased, which helps to make LXT slightly less reliant on hangar revenues for lease income. ABLE 5-3 SHOWS THE HISTORICAL AIRPORT OPERATING Expenses for LXT from FY2015 through FY2019. Operating expenses are those costs required to daily run the Airport. They do not include capital costs. Expenses listed in this section are made up of the following cost items: ► Personnel Expenses: This includes salaries and benefits of Airport employees. ► Fuel Expense: Fuel and Oil purchased at wholesale prices for resale. ► Materials & Supplies: This category includes such things as office/building supplies, postage, printing, travel, sanitation, and uniform expenses. ► Advertising: Marketing costs for LXT. ► Insurance: Cost of insurance incurred as a result of operating LXT. ► Maintenance & Repairs: This category includes maintenance performed on Airport buildings and grounds, as well as airfield maintenance. ► Phone & Utilities: Costs for Telecommunications and Utilities. ► Professional Expenses: This category includes legal and accounting fees, along with consultant costs. ► Miscellaneous: All other expenses not attributable to the other categories. It should be noted that depreciation is not included in the Operating Expenses because it is a non - cash expense. Depreciation is used to account for the loss of useful life value in capital investments. As such, depreciation is a good indicator on the balance sheet of asset value loss. As mentioned, the ability of LXT to generate revenues and cover operating costs is the primary concern. Surplus net operational revenues then, are a good measure of how much the Airport can generate on its own to invest in capital improvements. Operational Expenses, therefore, are inclusive of actual cash expenses and not depreciation expense. Table 5-3 - Historical Expenses •.erating Expenses Personnel Expenses FY 2i15 $348,469 FY 2016 $380,001 FY 2017 $407,579 FY 2018i $501,672 $567,838 Fuel Expense $534,031 $443,964 $398,341 $524,646 $648,882 Insurance $38,932 $44,344 $46,708 $42,418 $74,810 Advertising $21,269 $13,803 $24,427 $24,119 $14,796 Materials and Supplies $90,303 $78,412 $86,174 $144,576 $139,200 Maintenance & Repairs $72,204 $81,457 $137,584 $116,342 $77,966 Phone and Utilities $62,702 $51,322 $61,994 $76,834 $75,113 Professional Expenses $17,874 $9,072 $10,076 $26,248 $33,737 Miscellaneous $39,522 $41,195 $31,473 $38,553 $58,660 Total Operating Expenses $1,225,308 $1,143,571 $1,204,371 $1,495,409 $1,691,002 w R.A. Wiedemann & Associates, Inc. in association with CMT 5-5 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT Table 5-3 - Historical Expenses January 2027 •.erating Expenses FY 2i15 FY 2016 FY 2017 FY 2018i Non -Operating Expenses FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Transfers & Adjustments $357,949 $668,726 $524,235 $76,946 $10,959,386 Capital Outla $0 $0 $1,503,081 $92,434 $0 Interdepartment Charges $83,507 $68,482 $77,004 $67,762 $109,174 Interest Expense $5,023 $769 $2,636 $1,449 $301 Total Non -Operating Expenses $446,479 $737,977 $2,706,956 $238,591 $11,068,867 Total Expenses $1,671,787 $1,881,548 $3,311,327 $1,734,000 $12,759,863 From the historical financial information, operating expenses have increased since FY2016 from year-to-year, ranging from a low of $1,143,571 in FY2016 to a high of $1,691,002 in FY2019 (Table 5-3). This represents a 13.9 percent annual increase over that four-year period. The largest and most consequential expense segment is Fuel Expense, which experienced a 13.5 percent annual increase since FY2016. However, it is important to note that the Fuel Expense is offset by commensurate increases in Fuel Sales in the revenues section. The second-largest expense segment is Personnel Expenses, which experienced a 14.3 percent increase over the same period. Non -operating expenses shown in Table 5-3 are inclusive of LXT's capital improvement costs. Capital spending is based primarily on LXT's infrastructure development needs and its ability to secure grants and program improvements. These funds vary widely from year to year and will be forecast on the basis of LXT's most recent Airport Capital Improvement Program (ACIP) for the baseline projection. Over the historical period shown, non -operating expenses were largely made up of Transfers & Adjustments related to the construction of the runway extension. w R.A. Wiedemann & Associates, Inc. in association with CMT 5-6 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I January 2021 Historical Operating Expenses $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Fuel Expense Personnel Maintenance & Advertising & Expenses Supplies Insurance Figure 5-4 - Historical Operating Expenses by Category 13% FY 2015 Operating Expense by Type cw. 5% Z8% Y Fuel Expense ■ Personne I Expe nses 449y Ymaintenance &Supplies Y Advertising & Insu ran re o Phone & Utilities Y M i Kel lane ous Figure 5-5 - Percentage Shifts in Operating Expenses ■ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Phone & Miscellaneous Utilities FY 2019 Operating Expense by Type AM 6% ■ Fuel Expense 38% ■ Personnel Expenses Maintenance & Supplies ■ Advertising & Insurance o Phone & Utilities lil Miscellaneous In FY2019, Fuel Expense was the largest expense category at LXT ($648,882) and accounted for 38.4 percent of operating expenses. Personnel is the second largest expenditure at LXT. Figure 5- 5 graphically illustrates the percentage shift in operational revenues by type for comparison years FY2015 and FY2019. As shown, although Fuel Expenses remains the highest expense category, it has decreased as a percentage of total operational expenses while Personnel has become a larger expense component. Table 5-4 presents a summary and comparison of operating revenues and expenses. As shown, LXT has operated at a surplus every year except FY2018. Over the period shown, there were fluctuations, with overall operating surpluses decreasing by an average annual rate of 14.3 percent. w R.A. Wiedemann & Associates, Inc. in association with CMT 5-7 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT Table 5-4 - Comparison of Operating Revenues & Expenses January 2027 Year FY 2015 Operating Revenues $1,320,925 Operating Expenses $1,225,308 Operating $95,617 FY 2016 $1,270,605 $1,143,571 $127,034 FY 2017 $1,293,484 $1,204,371 $89,113 FY 2018 $1,481,056 $1,495,409 ($14,353) FY 2019 $1,720,855 $1,691,002 $29,853 5.3.1 GENERAL AND ADMINISTRATIVE (G&A) COSTS I For a municipal enterprise fund, G&A costs are incurred in the day-to-day operations of enterprise and may not be directly tied to a specific function or department within the enterprise. For LXT, G&A expenses pertain to operational overhead costs that impact the entire Airport, but are not serviced with Airport personnel. Instead, services provided from other City departments to the Airport, such as legal, accounting, finance, and other such services, are considered G&A costs. In the past, the G&A fee has been forgiven by the City to allow the Airport to put more money back into facility development. Moving forward, the City will cease the G&A forgiveness, and the resulting effects on Airport revenues and expenses are included in this analysis. The City has estimated that the current annual utilization of resources to be $115,000. Although the fee is subject to change throughout the planning period based on resource allocation by the City, this analysis will estimate future charges to remain at a flat rate of $115,000 per year. 5.3.2 ENTERPRISE FUND DESIGNATION I Enterprise Funds are used to account for the acquisition, operation and maintenance of governmental facilities and services that are entirely or predominantly self-supporting by user charges. The operations of Enterprise Funds are accounted for in such a manner as to show a profit or loss similar to comparable private enterprises. Enterprise Funds may be used to report any activity for which a fee is charged to external users for goods and services. For LXT, the question as to whether it should operate as a General Fund Department of the City or an Enterprise Fund will be addressed in the Recommended Plan. Of key importance is the fact that an Enterprise Fund does not have to be completely financially self-sufficient in order to carry that designation. It is against this historical backdrop that the Forecast of Revenues and Expenses for LXT was developed. It should be noted that most public -use general aviation airports in the United States do not cover expenses with revenues and must be subsidized by their owners/sponsors. In this w R.A. Wiedemann & Associates, Inc. in association with CMT 5-8 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 respect, LXT is exceptional in its ability to generate revenue and operate within the FAA goal of financial sustainability. The Baseline Forecast presents a status quo look at revenues and expenses, influenced primarily by historical activity. The projection does not consider all of the potential changes at LXT that might occur through the implementation of the ongoing Master Plan or this Business Plan. To determine the historical trend, the percent increase or decrease from FY2015 to FY2019 was examined to determine the most reasonable growth rates. FY2020 Budget numbers and FY2021 projections from the City of Lee's Summit were utilized in the forecast. 5.4.1 REVENUES I The following assumptions were used in developing the revenue portion of the forecast: ► Fuel Sales: Despite the economic slowdown from the global pandemic, Airport revenues from Fuel Sales are projected to increase. While a slowdown of fuel consumption is evident during the months the United States was in lockdown, the effect of the runway extension on fuel consumption put FY2020 on pace to outperform previous years. Records show that the first three fiscal quarters of 2020 showed a 48 percent increase in total gallons purchased over FY2019. Once the negative effects of the pandemic were considered, fuel sales were expected to show a 43 percent increase in FY2020. Included in this projection is the effect of global fuel prices reaching record lows during the pandemic. For the future, the forecast of fuel consumption used the Master Plan forecast of aircraft operational demand growth to project revenues. This growth shows aircraft operations growing from 49,600 to 68,370 by the year 2040 — a 1.62 percent compound annual growth rate. This increase was considered in addition to a 2.1 percent annual CPI increase. The total result of this growth rate is in an average annual increase in fuel revenues of $63,600 over the planning period. It should be noted that growth is limited by the number of based aircraft at LXT, which is a function of the hangar space available. With 100 percent hangar occupancy, growth in fuel sales can only be generated by transient customers. ► Lease Revenues: Baseline revenues from Airport leases are expected to stay at current levels for the next three years due to a lack of available hangars and current development. Because lease rates are examined each year and adjusted based on a 2.1 percent CPI. The impact of new hangars on revenue growth will be shown later in the Recommended Plan proformas. While the current lease agreements may not state a CPI growth rate, they do permit the City to change the lease rate from time to time with 30-days' notice. ► Miscellaneous Revenue: This category was increased by the CPI throughout the planning period. w R.A. Wiedemann & Associates, Inc. in association with CMT 5-9 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT January 2027 5.4.2 EXPENSES I The following assumptions were used in developing the expense portion of the forecast: ► Fuel Expense: The fuel expense category is expected to follow along the same growth levels as fuel revenues. As such, there is a 43 percent increase is recorded for FY2020, followed by a 2.1 percent annual CPI increase and a 1.68 percent annual compound growth over the planning period. ► Rate of Inflation/Consumer Price Index (CPI): Historically, the rate of inflation/CPI has been used to escalate prices when making forecasts of revenues and expenses. For this forecast, a rate of 2.1 percent was used to forecast Personnel Expenses, Materials & Supplies, Insurance, Maintenance & Repairs, Phone & Utilities, Professional Expenses, Advertising, and Miscellaneous Expenses. Drawing on these assumptions for both revenues and expenses, and taking a conservative approach to Airport financial performance, a baseline forecast was developed. These projections do not include the development of new facilities that are being recommended in the Master Plan. Again, the purpose of this baseline projection is to be able to show the impacts of new recommended development on LXT's finances. The baseline projection of revenues and expenses was forecast through FY 2040. As shown in Table 5-5, operating revenues are anticipated to grow from $1,720,855 in FY2019 to $4,108,434 by FY 2040 - an overall growth of 138.7 percent for the period. Baseline operating expenses are expected to increase from $1,691,002 in FY 2019 to $3,277,646 in FY 2040 - an overall growth of 93.8 percent. Table 5-6 presents the isolated summary of operating revenues and expenses generated by LXT under this constrained (baseline) scenario. w R.A. 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FY 2019 $1,720,855 •.erating Expens—WO $1,691,002 perating Net $29,853 FY 2020 $2,235,358 $1,960,974 $274,384 FY 2021 $2,314,855 $1,982,615 $332,240 FY 2022 $2,384,529 $2,034,878 $349,651 FY 2023 $2,456,449 $2,088,445 $368,004 FY 2024 $2,530,692 $2,143,546 $387,146 FY 2025 $2,607,338 $2,200,227 $407,110 FY 2026 $2,686,467 $2,258,538 $427,928 FY 2027 $2,768,164 $2,318,529 $449,635 FY 2028 $2,852,518 $2,380,253 $472,265 FY 2029 $2,939,619 $2,443,762 $495,856 FY 2030 $3,029,560 $2,509,114 $520,446 FY 2031 $3,122,440 $2,576,366 $546,073 FY 2032 $3,218,358 $2,645,578 $572,780 FY 2033 $3,317,420 $2,716,810 $600,610 FY 2034 $3,419,733 $2,790,127 $629,606 FY 2035 $3,525,409 $2,865,594 $659,814 FY 2036 $3,634,563 $2,943,280 $691,283 FY 2037 $3,747,317 $3,023,254 $724,063 FY 2038 $3,863,793 $3,105,589 $758,204 FY 2039 $3,984,121 $3,190,361 $793,761 FY 2040 $4,108,434 $3,277,646 $830,789 The results of this Baseline Forecast indicate that under the status quo scenario, where no new revenue -generating strategies are undertaken and no negative economic impacts are considered, operating net revenues at LXT are expected to stay positive and increase gradually over the planning period. In the next section of this Business Plan, a set of revenue enhancement initiatives will be examined that are anticipated to improve the financial performance for LXT. I RF Wiedemann & Associates, Inc. in association with CMT 5- 73 Section 6 Revenue Enhancement Options Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S D U R I REVENUE ENHANCEMENT OPTIONS 2027 HIS SECTION PRESENTS OPTIONS FOR REVENUE ENHANCEMENT by first examining the results of the SWOT and comparing the current situation to the economic setting for LXT. Revenue enhancement options were then developed with this background information, along with forecasts of probable activity at LXT now that its runway has been made more jet capable. Many of the options from the previous 2008 Airport Business Plan still have merit. However, LXT is farther along its development path, and new recommendations are needed to continue the momentum forward. HE KEY TO PROPERLY USING THE SWOT is to distill its findings into strategies that can be used for positive growth and revenue enhancement at LXT. There was a significant amount of information developed in the SWOT and its synthesis led to the grouping of findings as follows: ► Areawide Factors and Opportunities for Growth ► Potential Obstacles to Airport Performance ► Summary of Factors 6.1.1 AREAWIDE FACTORS AND OPPORTUNITIES FOR GROWTH I The SWOT pointed to numerous factors supporting potential growth at LXT. First, LXT is ready to receive both aviation and non -aviation growth. There are abundant developable areas on and adjacent to LXT. This readiness is complemented by easy access to expressways and downtown Kansas City. LXT's location is in the southeast corner of metro area and although that is the primary area that it serves, it also includes a significant Figure 6-1 - SWOT Workshop percentage of the metro area population. Unlike some airports, where local support is lacking, LXT has unusually high backing of both the City leadership and the local residents. There is an understanding of the importance of LXT in economic development, creating and sustaining jobs. IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-7 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 When the City expanded the primary runway length to 5,500 feet, it opened the door to greater levels of corporate aviation activity. It is understood that business aviation is where money and potential Airport revenues are concentrated. That is, corporate aviation is responsible for a disproportionately higher share of total revenues at an airport. Along with improved infrastructure, LXT has a very engaged management and staff, whose main focus is service. There are 75 business jets located in the Kansas City metro area. Of these, 65 are located at Wheeler Downtown Airport. This market has grown significantly from the 2008 timeframe, when there were 54 jets, 38 of which were located at Wheeler. Wheeler Downtown has thrived due to lack of competition. A new, large hangar would boost LXT and potentially attract tenants from the region. More recently, LXT has attracted several large aircraft from Johnson County airports, as well as Wheeler Downtown. From a regional perspective, continued growth in corporate aviation will provide an ample market for LXT to serve. In addition to corporate aviation, there is a great potential in aviation education. The St. Michaels aviation education center is located adjacent to LXT. In addition, the Summit Technology Academy, which prepares high school juniors and seniors for college and careers, is working with the Airport on an aviation partnership. Also, the Aircraft Owners and Pilots Association (AOPA) has a curriculum in aviation that is targeted at bringing young people into aviation careers. Given these developments, a large flight school on LXT could increase operational numbers, placing LXT closer to eligibility for an Air Traffic Control Tower (ATCT). This amenity would also benefit efforts to attract corporate aviation, as controlled airports are preferred over un-towered facilities. Finally, non -aviation development of Airport property is possible, given the areas that cannot access the airfield or will never need to be used for aeronautical purposes. These parcels are suited to industrial and commercial development and would serve to increase revenues to fund Airport operations. All of the locational benefits of LXT also extend to potential businesses that desire a to locate there. 6.1.2 POTENTIAL OBSTACLES TO AIRPORT PERFORMANCE I There are a number of potential obstacles to Airport performance that could derail growth. The first and most pronounced problem is that of the COVID-19 pandemic. Until this threat is constrained, it will wreak havoc in the national economy and all across the aviation transportation industry. General aviation has suffered (although not as much as the airlines) because of business closures, quarantines, and the lack of travel demand both domestically and internationally. SWOT participants pointed out that LXT is dependent on outside • The Need to Protect the Airport and Residential Development from Conflicting Land Uses • Any Stagnation of Service Improvements —the Need for Continued Service Expansion IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-2 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 funding sources from the FAA/State for capital development. In addition, local funding for grant matching or non -eligible project must rely upon favorable attitudes toward LXT. As such, LXT is always subject to political changes which could potentially reduce local funding support. The lack of amenities and services can reduce potential corporate aviation demand, as can having a bad brand. The presence of an ATCT would help attract corporate aviation, as would additional corporate hangars and a dedicated service staff. Lacking these would not eliminate growth, but it would slow the potential rate of growth significantly. Finally, it is known that residential housing and airports do not mix well. The land uses are at odds because people living and sleeping near an airport are often disturbed by the noise that aircraft generate. This issue could be exacerbated by the increased use of LXT by jet aircraft. One key to preventing such incompatibilities would be to manage residential growth in a way that minimizes interaction with LXT. Unfortunately, there are areas around LXT not controlled by City zoning. These areas could become obstacles to Airport performance in the future if residential encroachment is allowed. 6.1.3 SUMMARY OF FACTORS I In summary, there are numerous strengths and opportunities available to LXT to attract new business. From an overview perspective, the following opportunities for revenue enhancement could be identified: ► Attraction of Corporate Aviation ► Hangar Development ► Continued Improved Terminal Amenities and Services ► Airport Branding ► Aviation Education/Flight School ► Non -Aviation Property Development These opportunities must overcome the potential weaknesses and threats to continued Airport viability. A condensed list of potential dampening effects for continued growth include: ► COVID-19 Impacts to General Aviation and Corporate Demand ► Lack of Funding for Hangar and Other Revenue -Producing Developments ► The Need for Continued Political Support from City and Its Residents ► The Need to Protect LXT and Residential Development from Conflicting Land Uses ► Any Stagnation of Service Improvements — the Need for Continued Service Expansion The following sections address each of the main revenue enhancement opportunities. IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-3 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 N THE PREVIOUS BUSINESS PLAN, COMPLETED IN 2008 by R.A. Wiedemann & Associates, many of the same revenue enhancements were identified as have been identified in this Business Plan. However, one item — Runway Extension — has been implemented. That development initiative was the major recommendation of the previous Business Plan. By following through its expedited development, the City has already seen a boost in revenues for LXT, as more corporate aviation has been attracted. This Business Plan is meant to develop new revenue enhancement recommendations. These recommendations are designed to keep LXT's growth trajectory in a positive direction, even with the COVID-19 disruptions. This Business Plan answers the question, "Where do we go from here?" Now that the main portion of infrastructure development Attraction of Corporate Aviation (runway extension) has been • Airport Branding completed, there are a host of Revenue • continued Improved Terminal Amenities and other actions that need to occur to Services E n h a n cement • Hangar Development take full advantage of the new • Aviation Education/Flight School facilities and positive momentum. . Non -Aviation Property Development The following sections outline potential revenue enhancement options available to LXT. 6.2.1 ATTRACTION OF CORPORATE AVIATION I The attraction of corporate aviation and more business jets is seen as the most effective way to grow revenues and expand economic development at LXT. With quiet technology improvements forjet engines, the noise footprint for corporate aircraft has been shrinking. Thus, improving the living environment around an airport and attracting corporate aviation are not opposing goals. Whether based or itinerant, fuel sales to business jet aircraft are substantially higher than to any propeller -driven aircraft. With an average fuel upload of more than 500 gallons, business jets are sought by airports with facilities capable of handling them. At LXT, the history has shown an average upload of business jets at about 150 gallons. This is relatively low, as many of the aircraft are flying short stage lengths to get to their home base before actually filling the tanks. At LXT, the fuel sales experience since extending the runway has been instructive. In FY2015, LXT sold 150,731 gallons of fuel. In FY2019, that total had increased to 206,101. For FY2020, LXT sold 272,970 gallons of fuel. And this incorporated the downturn in growth caused by the COVID-19 epidemic. IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-4 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 There has been one reason for the increase in fuel sales — greater use by corporate aviation. There are now four (4) business jets based at LXT. In addition, there have been a number of hangar development proposals offered by private interests. In short, the ability of LXT to accommodate corporate and business aviation has struck a chord in the Kansas City metro area. A key component of this business plan is to show steps needed to wisely take advantage of the circumstances and attract corporate aviation in a manner that will create success for both LXT tenants and City of Lee's Summit. STRATEGIES TO ATTRACT CORPORATE AVIATION There are three primary strategies aimed at attracting more corporate aviation — activity to LXT. They include: - �,,, ► Hangar Development _— ► Continued Improved Terminal o Amenities and Services v '� v ► Airport Branding All three of these strategies have their own / �'� sections in this report. Therefore, only a brief overview will be provided here. Figure 6-2 - Hangar 1 Aircraft Storage at LXT Changing LXT brand is the first important step to take toward becoming known as a corporate aviation airport with a mission to serve that clientele. Part of the brand change will involve the development of new airport name and additional terminal amenities and services. Corporate aviation clients are accustomed to a certain level of service that exceeds those at "municipal" airports. And finally, if the program is successful, LXT will need more storage space for their new corporate aviation aircraft. Therefore, new hangars will need to be constructed to accommodate this new activity. POTENTIAL DEMAND A successful program to attract corporate aviation to LXT could attract an additional 50 percent jet aircraft over and above the baseline forecast of jet aircraft demand. In other words, there is a specific target of business jet activity to measure the success of the initiative. At LXT, the baseline forecast of jet activity shows a total of 14jets by 2040. This is an aggressive forecast. However, for this Business Plan, a goal of 21 jets would signal a more successful program of attracting corporate aviation. In addition to business jets, many multi -engine aircraft are used for business aviation. In this regard, there are a total of 12 multi -engine, propeller aircraft forecast for 2040. Because production of multi -engine aircraft is not growing as fast as the production ofjet aircraft, a smaller IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-5 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 percentage growth in this category would signal success. In this regard, a 25 percent increase was set as the strategic goal. That would mean a total of 15 multi -engine aircraft at LXT by 2040. In addition to based aircraft, the itinerant use of LXT by business jets and other business aviation should increase over the forecast period. The strategic goal is to increase business aviation itinerant use by 25 percent. For these aircraft that are not based at LXT, the primary benefit to LXT comes from fuel sales. FINANCIAL FACTORS Revenue and expense factors associated with the attraction of new corporate aviation clients will have an impact on Airport financial production. Depending upon whether or not LXT or private enterprise funds the construction of new hangars, the revenue streams will differ significantly. These specifics are described in a later section. However, the primary differences involve collecting land lease revenues versus full market rates for hangar space. To collect full market rates, the City must own the hangar. For a new facility, this means funding its construction and repaying the debt with revenues from its rentals. In addition to aircraft storage revenues, LXT stands to benefit from increased fuel sales. As the FBO, the City collects all the fuel markup. Typically, aircraft fuel consumption rates range as follows: ► Single engine aircraft - 200 to 500 gallons annually ► Multi -engine aircraft - 3,000 to 5,000 gallons annually ► Jet aircraft - 25,000 to 45,000 gallons annually Revenues from fuel sales can be estimated from total projected fuel sales. Other financial factors associated with new based aircraft and activity include the need for additional aircraft maintenance services and the potential for City investment in public/private partnerships. 6.2.2 HANGAR DEVELOPMENT I A foundational strategy for attracting additional based aircraft is to build hangars to accommodate them. When existing hangar space has been filled and space exists for development, there is no reason not to build additional hangars. The only questions are how they should be financed and who should develop them. If the City could develop hangars at a cost that allowed for the recoup of investment from rents, that option would be viable, assuming the City had excess capital available to use for construction. On the other hand, if capital is scarce, the City could opt to have private enterprise develop the hangars on ground -leased property. These are the two basic methods used at airports around the nation to develop hangars. The decision to do IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-6 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 one or the other often depends on the local market and the details of how the project will be financed. POTENTIAL DEMAND The baseline forecasts for business jets and other aircraft at LXT show an increase of 40 based aircraft over the planning period. This increase will require a minimum additional 20 T-hangar units and 84,000 square feet of conventional hangar space by the year 2040. Assuming the strategies for attraction more corporate aviation activity worked, this would mean seven more based jets and three more multi -engine aircraft. This would add a minimum of 58,000 square feet of conventional space to the projected totals. These space requirements assume an average of 1,000 square feet per T- hangar unit, 1,800 square feet for multi - engine aircraft, and 7,500 square feet for businessjets, on average. A key element in determining the potential demand involves the final price per square foot of conventional hangar Figure 6-3 - Hangar 1 at LXT space. If LXT can develop competitive hangar prices, relative to Wheeler Downtown and other jet - capable airports in the region, LXT can be successful in penetrating the large market share held by Wheeler. Not all business jet aircraft owners will benefit from locating their aircraft at LXT, however, that is not the goal. The goal is to attract a small percentage of aircraft owners that will benefit economically and logistically from an LXT location. FINANCIAL FACTORS The decision analysis for building hangars includes numerous factors, each of which could play a pivotal role in determining who and how the hangar gets constructed. The decision model includes the following inputs: ► Hangar Cost ► Hangar Size ► Ground Lease Footprint (for private enterprise development) ► Lease Period ► Hangar Lease Rate per Square Foot ► Ground Lease Rate per Square Foot ► Annual Maintenance Costs (if any) ► Inflation Rate ► Percent Financed by Loan ► Loan Interest Rate IAA R.A. Wiedemann & Associates, Inc. in association with CMT 6-7 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 ► Loan Length (in years) Using these inputs, a comparison can be made between Airport Sponsor development of hangars and private enterprise development of hangars on ground leased property. Typically, private development of hangars is between one-third and one-half less than public development for a number of reasons. Most public sponsors must pay prevailing wages and use engineering firms rather than pre-engineered structures. This lower amount for private developers is the margin that permits them to charge lower hangar rates and attract more demand. Two non-standard cases for airport Sponsors mentioned here include the use of grants for hangar funding and public -private partnerships for hangar development funding. The FAA allows an airport to use their non -primary entitlement grants to fund revenue producing projects such as hangars and fuel systems, if their airfield does not need any grant funding. For some hangar development, this grant funding makes the difference between positive and negative cash flows for local market hangar rental rates. Other public -private partnerships have been developed where the airport Sponsor uses grant funding and a private partner to develop the hangar. In this way, the airport Sponsor has invested only 10 percent of their banked share. In return, they have access to 50 percent of rental revenues from their hangar project. Variations of this arrangement have been made at other airports. 6.2.3 IMPROVED TERMINAL AMENITIES AND SERVICES I Airport Management has done a very good job in improving terminal amenities and services to keep up with increased corporate aviation demand. However, because of the intense competition, there is always more work to do. Terminal amenities and services typical of many high -end corporate aviation airports include: (Available at LXT) ► Crew Lounge (seats six persons) ► Flight Planning Rooms/Space ► Conference Room (modular building seating up to 15 around oval table) ► Hotel Packages (currently one hotel works with LXT) ► Courtesy Cars ► Concierge ► Catering (Medium and High -end) ► Lavatory Service ► De-icing ► Aircraft Repair ► Washer/Dryer ► Air Conditioning Unit for Aircraft Cabins ► Wi-Fi Capability on the Ramp IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-8 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT (Not Currently Available at LXT) ► On -site Car Rental Facilities (LXT allowed to re -rent returned cars) ► Restaurant Packages ► Coffee and Retail Shops ► Avionics Repair and Sales ► Air Traffic Control Tower (ATCT) ► Executive Lounge ► Showers ► Dishwasher Some of the items currently not available are in the process of being purchased or upgraded (dishwasher, avionics certification coming soon, and limited Wi- Fi on north ramp). Moving into the larger arena of corporate aviation requires investment and a commitment to service. As discussed earlier, the City of Sugar Land, TX has proven that a municipally run airport can 2027 compete internationally with other FBOs Figure 6-4 - Fueling Operation at LXT and win. This required investment in infrastructure and terminal amenities. It also took a commitment to developing a culture of service by both management and employees. POTENTIAL DEMAND Improved terminal amenities and services would support the attraction of corporate and business aviation to LXT. Thus, the potential demand would be the same as for the Attraction of Corporate Aviation, described above. However, by providing these amenities and services, there is a higher probability of attracting the targeted growth segment. In addition to the corporate and business demand, the development of an ATCT would likely improve the chances of attracting a significant flight school, simply because students have a need to train under controlled airspace conditions. FINANCIAL FACTORS At LXT, development of a first-class corporate aviation facility can reap significant financial dividends. Common mistakes in municipal governments is the avoidance of "soft costs" associated with terminal amenities and services at their airports. Many view these items as secondary and not important to the bottom line. Their main concern is running the airport and keeping the runways clear. And yes, that is important. However, neglecting the customer side of the equation forfeits discretional corporate and business aviation activity that can land at anyjet-capable airport in the Kansas City area. IN R.A. Wiedemann & Associates, Inc. in association with CMT 6-9 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 The largest cost item would be the Air Traffic Control Tower, followed by the Executive Lounge and showers. Avionics certification will be available soon. That leaves the coffee shop, dishwasher for corporate crews who have food galleys on board and need to wash dishes/cookware, and restaurant packages. Except for the dishwasher and restaurant packages (both could be implemented for less than $2,000), the remaining items will likely need to wait until traffic increases to the point that they can be supported. Costs to implement the remaining service items in rough order of magnitude costs would include: ► Air Traffic Control Tower - $8.0 - $10.0 million for brick and mortar building' ► Remote Virtual Tower - $2.0 - $3.0 million' ► Executive Lounge (1,500 sf) - $150,000 - $300,0002 ► Showers (4 stalls) - $50,000 - $75,0002 A new concept that is working in some locations involves a "remote virtual tower." Virtual tower services at small and medium size airports would be provided by personnel located at a remote tower center somewhere else. The tower works using video -sensor based surveillance instead of 'out -of -the -window' view from a real ATCT. This would be significantly less expensive than building a physical ATCT. 6.2.4 AIRPORT BRANDING I As the number of choices for corporate aviation proliferate, the need for an easily identifiable brand is an absolute requirement. LXT must continue developing tools and methods geared toward building a strong brand with immediate geographic identity, ideally focused upon attracting corporate based aircraft and itinerant operations. This single market segment has the greatest r�PV I 1 0 WWF opm (9 - AA.'n Googi� CM,7&1 amazon o potential to contribute to increased Figure 6-5 —Historical Iconic Brands market share and an overall improvement in the revenue stream. ' Source: Raytheon Intelligence & Space, "In Plane Sight, Remote Virtual Towers Could Replace Costly Airport Structures." 3/2020. https://www.raytheonintelligenceandspace.com/news/feature/plane- sii!ht#:---:text=Constructing%20a%20new%20brick%2Dand.Carolina's%20Charlotte%20Douglas%201nternational% 20Airport. 2 Source: Consultant Estimate IMF R.A. Wiedemann &Associates, Inc. in association with CMT 6-70 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 New potential names for the Airport to represent its new brand have been suggested, including: Lee's Summit Regional or Executive Airport, Kansas City Regional or Executive Airport, Greater Kansas City Regional Airport, and Heart of America Air Center. The "corporate" focus of the new Airport brand will lend itself naturally to all other facets of Airport business growth, including; both aviation and non -aviation land development; the eventual development of a new terminal and corporate hangars on the east side; support and growth of small general aviation aircraft usage, and so on. Simply put, a polished brand well executed, will positively impact all other areas of Airport activity and business growth. POTENTIAL DEMAND As mentioned, the potential increase in corporate aviation could include an additional 17 based jets, 7 of which are attracted because of the new brand. Essential elements that contribute to LXT upgraded brand should include: ► LXT's 5,500' x 100'jet capable runway. ► Corporate pilot friendly infrastructure, services, and amenities. ► LXT's position near the geographic center of the United States. ► A legitimate boost from "Municipal" to "Regional" or "Executive" status. ► LXT's skilled and friendly — service oriented — staff committed to meeting and exceeding customer expectations. ► Lack of airspace congestion, relative to Kansas City International or Wheeler Downtown Airport. EXISTING COMPETITION WITHIN SERVICE AREA Of the airports within the service area, there are three best positioned to compete as primary competition with LXT for the profitable corporate aviation, based aircraft market segment: • Charles B. Wheeler Downtown • New Century AirCenter • Midwest National Air Center Charles B. Wheeler Downtown (MKC): As the original air carrier airport in Kansas City, MKC has a 6,827 x 150-foot primary runway and a control tower staffed 24 hours. Although no longer serving commercial airlines, the airport does serve as a convenient hub for chartered flights including those of professional sports teams traveling to compete with the Royals, the Chiefs, and the Sporting Kansas City major league soccer team. Additionally, MKC is served by three FBOs, Atlantic Aviation, Signature Flight Support, and the City operated FBO. These factors — combined with full ARFF services — contribute to attracting the lion's share of corporate jet activity among area airports. The based aircraft mix at MKC consists of 65 IMF R.A. Wiedemann & Associates, Inc. in association with CMT 6-11 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 jets, 21 multiengine, 78 single engine, and 4 helicopters for a total of 168 aircraft. MKC has an adequate website and good presence on Facebook, Instagram, and Twitter. Because of its location and history as the original aviation option for Kansas City, MKC is enjoying an extended ride upon its legacy. It is reasonable to assume that one or more of the 86 jet and multiengine tenants at MKC might be interested in the less crowded air space and lower fee structure at LXT. New Century AirCenter (IXD) IXD in Olathe features a 7,339 x 150-foot primary runway with a FAA contract air traffic control tower, Category I instrument landing system, and fire station. The 2,500-acre tract is billed as the region's multimodal center, merging air, rail, and interstate highway transport. Three full -service fixed base operators on the field — Advanced Jet Center, Quick Turn Central, and Signature Flight Support - provide fuel and flight services for all classes of reciprocating and turbine aircraft, seven days a week. Other services include air charter, aircraft sales, aircraft maintenance and flight training. IXD has 45 based aircraft including, 1 jet, 6 multiengine, and 22 single engine aircraft. Originally named Johnson County Industrial Airport, the name was changed to New Century AirCenter in 1995 to provide a stronger marketing tie with New Century Business Park. IXD has a rudimentary webpage hosted on the City's website with a good presence on Facebook, Instagram, and Twitter. With all the investment and improvements on the airport itself, it is not difficult to imagine that IXD will eventually upgrade its website and marketing outreach which could possibly put some pressure on LXT. Midwest National Air Center (GPH) GPH in Mosby features a non -towered 5,502 x 100 with ILS approaches. FBO services are provided by Quick Turn Flight Support. The GPH tenant base consists of 3 jets, 39 multiengine, 49 single engine, and 2 helicopters for a total of 94 aircraft. GPH has a functional website and good presence on Facebook, Instagram, and Twitter. Due to its location on the north side of Kansas City, GPH is not a direct competitor for based tenants at LXT, although it is not unreasonable for LXT to compete for valuable itinerant corporate jet traffic, and my even win a few based aircraft by providing greater amenities and value. Itinerant Corporate Operations With regard to attracting itinerant corporate aviation operations, Kansas City International Airport (MCI) — home to only two based jets — is a key contender. MCI's three runways — all 9,500 feet or longer permit the airport to accommodate nearly 140 flight operations per hour. At the time of this report, MCI serves a dozen commercial airlines, numerous charter operations, and still makes room for corporate and light aircraft operations. Many professional sports teams also utilize MCI when traveling to compete with Kansas City teams. Additionally, MCI is served by Signature Flight Support, FBO. IN R.A. Wiedemann &Associates, Inc. in association with CMT 6-72 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT FINANCIAL FACTORS 2027 A new brand can be expensive. It would involve the following steps to implement LXT's fresh new identity. The cost estimates that follow are drawn from known ranges based on similar successful projects for other airports. It must be acknowledged that depending upon numerous factors, costs can vary radically from those specified below: ► A new Airport name must be selected. Cost: Minimal if performed "in-house." ► Artwork would be initiated to design a unique visual identity (Logo). Cost Range: $6,000 - $10,000. (This price could climb sharply if the City used a large branding company). ► Guidelines would be established to specify brand colors, and the recommended uses, sizes, and positioning of LXT logo for maximum brand awareness. Cost Range: $1,000 - $2,500. ► A brief marketing plan must be outlined to deploy the new look. This will should include recommendations for: ♦ A stand alone "Corporate" themed Airport website linked to — and prominently featured within — the City website. Cost Range: $4,000 - $8,000 ♦ Production of a new Airport video that provides a brief history, current developments, and a vision of the future featuring the new Airport name and branding elements. Cost Range: $8,500 - $10,000. ♦ Development of a tag line that would help position LXT as a destination of choice for corporate aviators. Cost: Minimal. ♦ The development of a targeted social media outreach is vital to contending for potential customers. This involves a professional presence on Facebook, Instagram, Twitter, and other viable platforms. Cost Range: $3,500 - $7,000. ♦ Recommendations on development of a targeted Direct Mail campaign designed to reach business aircraft owners in the immediate region, assuming four to six mailings (annual cost). Cost Range: $3,000 - $5,000. ♦ Recommendations for unique logo wardrobe and signage that will promote and further solidify the new brand. Cost Range: Minimal (included with Logo development cost). Each of these components has a cost range. And while they are not all required, many are important in conveying the message to customers that a change has taken place, not in just the infrastructure of LXT, but in its management philosophy and service practices. Budget permitting, a comprehensive Airport Marketing Plan would incorporate many of the above referenced items, plus addressing: ► Develop a comprehensive Airport marketing and public relations program that includes print, multimedia and marketing tools needed to promote the new brand, and amenities of LXT. IN R.A. Wiedemann &Associates, Inc. in association with CMT 6-73 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M I S S O U R I 2027 ► Develop an Airport press kit with outlined press releases, high resolution photos, official logo art and usage guidelines, Airport history, etc. for the purpose of improving public and media relations. ► Airport entry and off -Airport directional signage. ► Specifications for Airport vehicle signage. ► Recommendations for logo merchandise, and ad specialties that will promote and further solidify the new brand. ► Recommendations for proactive outreach to improve the community's perception of the role and importance of LXT. ► Outline specific steps to increase the economic impact of LXT on the community, by increasing based and itinerant corporate aviation use, and by enhancing existing and/or developing new specialized aviation products and services. ► Develop a marketing initiative to increase the use of LXT by aviation clubs, associations, and organizations. ► Develop materials for promoting aviation and non -aviation land development. ► Help the City determine how to brand its FBO, perhaps separately from LXT. ► The Cost Range for a comprehensive Airport Marketing Plan which will provide necessary steps for renaming and branding plus a clear course of action for the following years: $40,000 - $50,000 Detailed recommendations on the above steps will follow in Section 7. 6.2.5 AVIATION EDUCATION/FLIGHT SCHOOL I In early 2020, the idea of aviation flight school development was popular amongst colleges and universities because of the decade or so pilot shortage predicted in the aviation industry. Since that time, the COVID-19 epidemic has seen airlines park vast numbers of aircraft and layoff or furlough significant percentages of their pilots. This development has put the brakes on some new programs and flight school expansion actions. Typically, aviation is the first industry to feel the effects of a recession and the last to recover from it. The assumption for this Business Plan is that aviation demand will be essentially pushed back at least three years, but because the economic fundamentals were not at fault, growth can continue as it had in the pre-COVID-19 period. If anything, there is now some "breathing room" to develop a longer -range plan for aviation education and/or flight school. ST. MICHAEL THE ARCHANGEL (SMA) Next door to LXT, SMA is the only Catholic high school nationwide that offers and Aviation program. SMA partners with the Aircraft Owners and Pilots Association (AOPA) & High School Aviation STEM Curriculum to set the course of study. Students do not graduate with a pilot's license after completing the SMA program. However, they are prepared AOPAI Iof R.A. Wiedemann &Associates, Inc. in association with CMT 6-74 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 to take the FAA's Private Pilot Knowledge Test or the Part 107 Remote Pilot Knowledge Test. Given the proximity to LXT, a follow-on program could be developed that would involve actual flight training and simulator time. SUMMIT TECHNOLOGY ACADEMY (STA) In addition to SMA, the STA, which prepares high school juniors and seniors for college and careers, is working through the R-7 School District and with the Airport on an aviation learning partnership. STA is a shared campus of junior and senior students who come together for a half - day program as an extension of their home high school. STA is a career -focused academy designed to prepare students for tomorrow's professional workforce. It is located at the Missouri Innovation Campus building, which is a cutting -edge facility that looks and feels like today's top collaborative workplaces. STA shares this facility with the University of Central Missouri—Lee's Summit, creating a professional collegiate atmosphere for students from 30 public and private high schools sent from 18 school districts. STA is currently developing an Aerospace Academy, which will focus on seven areas of aviation tracks for students: ► Aerospace Engineering Track ► Avionics Track ► Professional Pilot Track ► Aviation Maintenance Track ► Drone Pilot Track ► Aviation Management Track ► Military Aviation Track In this program, the high school junior year would focus on digital electronics/aerospace engineering (flight and electronic principles). The senior year would focus on continued ground school and avionics prep. These are called the "front and back side of the airplane console" studies. While STA does not have a flight training program (and probably will not), they do prepare students for flight training by providing ground school and other aviation education programs. Currently, they feed students to the flight training program at the University of Central Missouri in Warrensburg and other universities with flight training programs. There has been talk of a partnership with Lee's Summit Municipal Airport for an Airport Lab Space proposal. This would place students at an airport location. Details have yet to be worked out. However, the Business Plan will assume that some space on the East Side will be dedicated to the STA program. SATELLITE FLIGHT TRAINING PROGRAM IN R.A. Wiedemann &Associates, Inc. in association with CMT 6-75 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 The flight training program at the University of Central Missouri (UCM) is based at Skyhaven Airport, with little chance of that changing. However, it is possible that growth in flight training activity may be spurred by the STA and SMA programs, which could result in the development of a satellite flight training program at Lee's Summit Municipal Airport. In this regard, a flight school at LXT would likely have to be first developed privately. In many cases, new aviation programs at colleges and universities have used independent contractors for the flight training portion of their curricula. Once the program gains enough students, it can be taken "in-house," where students themselves become certified flight instructors (CFIs). POTENTIAL DEMAND The key to determining the feasibility of an aviation flight school at LXT is the determination of potential student demand. This demand was estimated for student pilots using existing and historical data for student pilots in the Kansas City metro area. According to FAA databases, there are 752 student pilots in the zip codes associated with the metro area. On a broader basis, an estimation process that would confirm the student pilot averages is one where a per capita Figure 6-6 -Flight Simulator Controls number could be generated for the combined states of Kansas and Missouri. In addition, aviation program enrollment considered non -flight students that may desire degrees in aviation management or similar programs. These totals could then be forecast for the Kansas City metro area to give a better understanding of the potential market for an aviation program. ► 2019 Student Pilots in Kansas and Missouri: 3,654 ► 2019 Population of Kansas and Missouri: 9.05 million ► 2019 Population of Kansas City MSA: 2.14 million' Using these numbers, it was estimated that Kansas City MSA would currently generate an average of 865 student pilots. That is slightly higher than the actual number of 752, but it does give an idea of the potential for additional students. Assuming that a flight training program could capture 10 percent of the existing and future student population, roughly 80 student pilots could be included in proformas. In addition to student pilots, at other university aviation flight training programs there is an average of about 30 percent of the aviation majors that do not involve flight training (often those students who "wash out" of the flight program). This would translate into a total of 100+ aviation program students. s Source: U.S. Census Bureau: https://www.census.gov/quickfacts/MO; and https://www.census.14ov/quickfacts/KS; Accessed 6/4/20. 4 Source: Consultant Estimate interpolating 2018 estimate of 2,106,600 and 2020 estimate of 2,176,400. httpss://worldpopulationreview.com/us-cities/kansas-city_population/, accessed 6/4/2020. IMF R.A. Wiedemann &Associates, Inc. in association with CMT 6-76 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 In addition to the potential student pilot population, it is important to identify potential academic outlets that would host aviation education programs. Currently, the University of Central Missouri has an aviation program in place, with more than 100 students in the program. Flight training is performed at Skyhaven Airport, near Warrensburg, MO. That facility is 41 miles from LXT, which would make commuting difficult. However, it is possible that a cooperative program could be developed to establish a satellite flight training program or classes at LXT. Discussions with representatives of the Aviation program at UCM indicate an interest in exploring potential flight training scenarios at LXT. Such a program would likely start with one or two aircraft and build from there. To be successful, the program would have to pay for itself over time. At this point, the conversations have been started and further discussions will be held between collaborative parties to explore feasible flight training options at LXT. FINANCIAL FACTORS LXT would benefit from the establishment of a flight school through the increased number of aircraft operations and fuel consumption. For example, a program with 80 student pilots could potentially generate 20,000 aircraft operations, along with increased fuel sales of 40,000 gallons of Avgas. This operational level is similar to the Professional Pilot Training Program at Delaware State University. For LXT, the presence of a university -affiliated flight school could eventually translate into the following: ► Eight -Ten Additional Based Aircraft ► 20,000 Annual Aircraft Operations ► T-hangar or Conventional Hangar Space (8,000 s.f.) ► 40,000 Gallons of Avgas ► On -field Demand for Aviation Mechanic Both the hangar storage space rentals and fuel margin revenues would contribute to LXT's bottom line. In addition, the additional 20,000 or so aircraft operations would move LXT closer to qualifying for an ATCT. A Control Tower will help with the attraction of corporate aviation. It would also function to keep student pilot training safely away from business jets using LXT. 6.2.6 NON -AVIATION PROPERTY DEVELOPMENT I For purposes of this Business Plan, non -aviation land use describes areas without airfield access. For these areas, development possibilities should consist of appropriate uses that are compatible with an airport environment. Industrial development (manufacturing, warehousing, distribution, assembly, or production activity) is considered highly compatible for non -aviation airport property development, partially due to the capability of these entities to absorb the noise impacts from IN R.A. Wiedemann &Associates, Inc. in association with CMT 6-77 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 airport activity. Commercial/Retail development (office buildings, commerce parks, restaurants, franchise, and specialty goods outlets) are also considered compatible development for airport activities, although these areas are impacted more by airport -related noise than industrial development due mostly to the human activities there. Non -compatible development would include anything characterized as a residential area. This includes homes, schools, churches, community centers, recreation/sports facilities, daycare centers, nursing and assisted living facilities, and other uses that are generally enjoyed as quality - of -life -enhancing amenities. These areas are the least compatible with airport -related noise because people live and sleep in these buildings. In addition, safety concerns for both property owners and airport users should limit the amount of residential land use in the near -airport approach areas. DEVELOPABLE LAND Two large parcels of Airport property have been identified as potential non -aviation developable land. These parcels do not have access to the airfield and cannot ever be used for aviation purposes. Rather than let them sit idle, the Business Plan recommends the conversion and use of the land to revenue producing property. Figure 6-7 shows the location of these developable parcels. Their descriptions include: ► North Side Parcel: This parcel is located along Strother Road and includes roughly 16 acres of property for potential development. Because of terrain slopes, development uses will need to be carefully planned. ► South Side Parcel: This parcel is potentially accessible from NE Town Center Boulevard. It contains approximately 30 acres and it also has some terrain sloping, but not to the degree as the North Side Parcel. MARKET CONDITIONS In Kansas City, commercial real estate is comprised of several sectors: office market, industrial market, retail, and multi -family housing market (condominiums, rental properties). For Lee's Summit, non -aviation property development will focus on all but the residential multi -family developments. The existing business and industrial development located adjacent to LXT on NE Hagen Road and NE Independence Road are made up of a mix of industrial, commercial retail, and some office space, including a church. For 2019, the Kansas City commercial real estate outlook was good, with most sectors still growing. Block Real Estate Services (BRES) reported the following statistics and outlook:' Office Market: The Kansas City office market saw rental rates increase from $19.62 per square foot in 2018 to $20.31 in 2019. This compares to the national office rental rate increasing to $33.83 per square foot in 2019 from $25.49 per square ' Source: www.blockllc.com/marketreport; Block Real Estate Services Market Report. Iof R.A. Wiedemann &Associates, Inc. in association with CMT 6-78 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M 13 5 0 U R I 2027 foot in 2018. This market also experienced positive absorption of nearly 38,800 square feet in 2019, down from 77,069 square feet in 2018. All of this being said, the impacts of COVID-19 are likely to reduce both the demand for offices space and the price levels from 2019 for some time to come. Figure 6-7 - Non -Aviation Airport Land for Possible Development Industrial Market: Kansas City's industrial market has experienced an unprecedented expansion for the past several years which continued through 2019. Industrial leasing in 2019 totaled 10.48 million square feet with net absorption of 6.3 million square feet. With a slowdown in speculative construction, it is anticipated that vacancy rates will increase slowly over the next few years to around 6.5% while rents continue to increase in the market. Iof R.A. Wiedemann &Associates, Inc. in association with CMT 6-79 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M I S S O U R I 2027 9qRetail Industry: The retail industry has evolved in recent years, as the development of greenfields slow down, while the refacing of older, yet viable, centers at strong intersections increase. One trend is to bring mixed -use developments, including retail, straight to the consumer beneath luxury apartments. There continues to be new retailers filing for bankruptcy protection while others attempt to evolve through right -sizing their brick and mortar footprints and expanding their ecommerce offerings. In 2019, overall, vacancy rates remained constant across the metro, moving from 6.0% at the end of 2018 to 6.3% at the end of 2019, while average rental rates decreased slightly, $0.19, to $12.97. During the first quarter of 2020, the picture changed, notjust in Kansas City, but globally with the advent of COVID-19. The COVID-19 pandemic has forced social distancing and immediate disruptions to the supply chains and loss of revenue in the Kansas City commercial real estate market beginning in March and extending for an undetermined period. Once the COVID-19-induced recession is over, commercial real estate development near LXT will restart. Newmark Grubb Zimmer, a full -service commercial real estate company headquartered in Kansas City, believes as e-commerce sales continue to rise, the push for near -shoring manufacturing operations will become stronger as concerns for international supply chain disruption will not be forgotten. In addition, the extremely lean inventory levels will also be reconsidered, leading to possible increased space needs. These national growth pressures, combined with investor pursuits of non-volatile assets could increase the demand for local commercial real estate.' LIKELY DEVELOPMENT SCENARIO Because of COVID-19 impacts on the demand for commercial real estate, it is possible that the traditional non -aviation development of Airport property will be pushed to Phases II or III. The more likely scenario for the immediate planning period would be the development of individual sub -parcels of LXT property for companies that have a geographic need to be in the area or a desire to be adjacent to an airport. Most of these anecdotal scenarios cannot be predicted but instead, rely on outside circumstances and "being in the right place at the right time." While this is not a scientific explanation, time and chance are factors in many business deals. For this business plan, the impact of the commercial real estate glut in the Kansas City metro area will be to push reliance on the financial production of non -aviation property to future planning periods. The Recommended Plan will discuss the potential revenue associated with the development of non -aviation property at LXT. Results will be included in the final proformas. 6 Source: Newmark Grubb Zimmer, "1 Q 2020 Kansas City Industrial Market Report." https://ngzimmer.com/sites/default/files/IQ20-Kansas-City-Industrial-Market-Online.pdf, accessed 6/8/20. Iof R.A. Wiedemann & Associates, Inc. in association with CMT 6-20 Section 7 Recommended Plan Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT RECOMMENDED PLAN 2027 HE RECOMMENDED BUSINESS PLAN FOR LXT FOCUSES on methods that the City of Lee's Summit can use to maximize future growth opportunities for the Airport. As mentioned in Section 6 of this plan, the Airport has significant opportunities to develop future revenue. These opportunities stem from the potential physical expansion of the Airport, coupled with the aviation demand growth in the greater Kansas City area. In this section, it is important to note that the expansion opportunities discussed are not tied to the expansion of the runway, or the addition of FeclEx or commercial airline service. This Business Plan outlines the possible steps the City can take to improve revenues by increasing aviation activity, encouraging more corporate aviation use, or developing new revenue producing facilities. The recommendations identify the component parts of the plan, the reasons why it should be undertaken, and the action steps needed to get it done. The sections that follow summarize the recommended Business Plan for LXT: ► Attraction of Corporate Aviation ► Hangar Development ► Continued Improved Terminal Amenities and Services ► Airport Branding ► Aviation Education/Flight School ► Non -Aviation Property Development ► Management and Policy Recommendations ► Recommended Plan Proforma ► Summary and Findings The Recommended Plan proforma shows the financial impacts of these recommendations on the Airport's bottom line. In addition, there are a number of administrative recommendations regarding the Airport, its enterprise fund designation, and how it functions within the City government. HERE ARE THREE PRIMARY COMPONENT PARTS OF the plan to attract more corporate aviation. These include: ► Hangar Development ♦ Development Options ♦ Need for Utilities and Pad -Ready Sites ► Continued Improved Terminal Amenities and Services ► Airport Branding IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-7 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 These components are each discussed in detail in separate sections below. However, all three are needed to bring more business jet and multi -engine aircraft to LXT. Reasons why the City should pursue this recommendation include the following: ► It has the highest potential to generate revenues of the various strategies considered. ♦ In 20 years, this activity has the potential to generate net revenues of $5.1 million or more annually (see Table 7-3). ♦ Corporate aviation represents a disproportionately higher revenue share for jet - capable general aviation airports than do other sources of revenue, with fuel sales being a large component of these additional revenues. ► It increases the utilization of the Airport and its asset base. ♦ The new runway extension and hangar purchase/development will be used to a greater degree, thereby funding even more improvements. ► It provides convenience for business air travelers in the Kansas City metro area. ♦ With Kansas City International on the north side and Wheeler near downtown, LXT can better serve the southern and eastern portions of the metro area for business air travelers. Corporate aviation typically consists of jet and turboprop aircraft. Goals for the program are to attract an additional 50 percent jet aircraft over and above the baseline forecast of jet aircraft demand. This means drawing 21 based jets to LXT instead of the forecast 14 over the planning period. In addition to this, an additional 25 percent increase of turboprop aircraft over and above the baseline forecast would mean drawing 15 turboprop aircraft to LXT instead of the forecast 12 over the planning period. Jet Fuel sales with additional based jets and turboprop aircraft are anticipated to total 1.9 million gallons over the planning period. This is 1.9 million gallons higher than the baseline projections without this strategy. Steps needed to implement the attraction of more corporate aviation to LXT include the following: 1. Acquire or Develop New Hangar Space: As discussed in the next section, the provision of additional hangar space is key to any growth of corporate and small general aviation based aircraft. There are numerous ways of doing this and several of the most successful strategies are outlined below. 2. Focus on Service -Oriented Amenities: The corporate aviation industry values service and safety as much or more than any other offerings at an airport. With multimillion -dollar aircraft, owners and users can choose which airports will provide the best experience. Excellent service has been a hallmark of successful Fixed Base Operators throughout the nation. Specifics about Service -Oriented Amenities are discussed in a following section. 3. Develop and Implement a Branding/Marketing Program: One of the most important steps to attracting more corporate aviation is to get the word out to potential customers IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-2 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S 0 U R I January 2027 in a way that optimizes the appeal of LXT's assets. Components of a full branding and marketing program are presented in a following section. S MENTIONED, THE FOUNDATIONAL STRATEGY FOR ATTRACTING additional based aircraft is to build hangars to accommodate them. This can be accomplished through City -built hangars or privately funded hangars, or a combination of both methods. For the Recommended Plan, the following components of the hangar development strategy can be defined: ► Conventional Hangar Space: Develop at Least 101,000 square feet of new conventional hangar space by the year 2040 to meet the demand for based corporate aircraft. ♦ This assumes the addition of 17 new based jets and 8 new turboprop aircraft over the planning period. ♦ The number and size of the hangars will be configured as needed or as developers give proposals. ► T-Hangar Space: Develop at least 20 new T-Hangars Units to meet single -engine aircraft demand during the same planning period. Reasons why the City should pursue new hangar development include: ► New hangar space increases the number of based aircraft, overall hangar rents, and fuel sales. It is conservatively estimated that for every based business jet, an additional 25,000 gallons of jet fuel can be sold. For every based turboprop aircraft, it is estimated that an additional 5,000 gallons of jet fuel can be sold. ► A variety of hangar development options are available to the City, which cover almost any monetary scenario (borrowed capital, private investment, public -private -partnership, etc.) ► Development of the East Side will require some hangar construction and utility development to create a critical mass of activity to support aeronautical businesses on that side of the Airport. ► To reach its full potential and to optimize the return on its airport assets, hangar development is one of the best investments available to an airport sponsor. ► Hangar development is necessary to implement the new branding strategy for the Airport, which points toward corporate and business use. Without hangar space, the Airport will fall short of attracting the types of aircraft its airfield is capable of accommodating. ► The Business Plan projects an additional $292,400 in annual lease revenues by the year 2040 if hangars are developed to satisfy proactively induced demand resulting from a new branding program (see Table 7-3). IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-3 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 LJ R I T January 2027 7.2.1 OPTIONS FOR NEW HANGAR DEVELOPMENT I Several options exist for the development of new hangar space. To adequately plan for the future, hangar demand at LXT was estimated to include 20 T-hangar units and 101,000 square feet of conventional hangar space over the next 20 years. Confirmation of this demand would be required in the form of waiting lists and pre -construction deposits for new hangar space. It is anticipated that new based aircraft are likely to result from initiatives of the City, combined with natural growth in aircraft ownership in the Kansas City metro area. For LXT, it is important to note that the availability of utilities on developable land will be vital to any development of hangars that could accommodate corporate aircraft. The primary methods for hangar development analyzed in this Business Plan include the following: 1. City Development of New Hangars 2. Ground Lease with Private Hangar Developer 3. Combination of City and Private Hangar Development CITY DEVELOPMENT OF NEW HANGARS Table 7-1 indicates the approximate cost of developing a 10,000 square foot hangar at the Airport. As shown, the hangar would have to rent for $5.82 per square foot per year. This assumes a financing package of 20 years at 4 percent interest. Currently, rents for conventional hangar space vary on the Airport, ranging from $6.00 per square foot to $9.00 per square foot. This means development of hangars on the Airport would be feasible to finance through borrowing. Table 7-1 - City Hangar Development Model — 20 Year Hangar Type Construction Cost Annual Debt Service Debt Coverage 10-Unit T-hangar $770,000 $56,000 $467/mo./unit 10,000 sf Conv. Hangar $800,000 $58,200 $5.82/sf/yr. 40,000 sf Conv. "Hangar One" $3,200,000 $232,700 $5.82/sf/yr. :J At LXT, T-hangar rates range from $345 to $650 per month, indicating that the upper range of rents would support the development of new T-hangar units that used debt financing. IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-4 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S O U R I The primary consideration is whether or not the City wants to wait 20 years to get its money back, or to speed up the process by charging premium market rates. PRIVATE DEVELOPMENT OF NEW HANGARS If the City does not desire to develop new hangars or cannot identify the needed capital for development, private d 1 t f II h b 2027 eve opmen o a new angars may e necessary. This type of development Figure 7-1 - Hangar 1 at LXT occurs at many general aviation airports, partially due to the ability of private developers build at lower costs than government contracting. Without the requirements of prevailing wage laws, use of pre-engineered buildings, etc., private development costs are estimated at 2/3 that of government development costs for the same project. Currently the City has reversion clauses in their land leases so that improvements on the property revert to the City upon expiration of the lease. Once a hangar reverts to City ownership, it is incumbent upon the City to seek rental rates as close to market value as can be negotiated. It is understood that this may be difficult with tenants who have constructed their hangars and now must pay more for them after many years of leases. However, the value of the hangar or other property is that it adjoins the Airport runway system. Thus, its location is functional to its value. Likewise, extending the lease should have some value above prevailing ground lease rates. Table 7-2 presents the pro forma for private development of new hangars at REI. Table 7-2 - Private Development of Hangars: 20 Year Proforma 10 Unit T-Hangar Conventional Hangar Hangar Square Feet 10,000 s.f. 10,000 s.f. Cost of Hangar (2/3 cost of City) $515,900 $536,000 Term 20 years 20 years Total Ground Lease @ $0.38/s.f. 3% annual escalation $204,200 $204,200 Private Developer Profit Margin @ 15% $108,000 $111,000 Total Cost (hangar + ground lease) $828,100 $851,200 Private Developer Breakeven $345/Unit/month $4.26/s.f./year IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-5 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 This proforma assumes that the lease footprint will be twice the size of the hangar structure. This additional space accommodates parking lots, drainage features, hangar apron, etc. In practice, LXT uses the entire leased parcel at the published rate, which may be more property than simply twice the size of the building • Hangar Cost footprint. In addition, the proforma - Hangar Size does not include operating costs and Hangar • Ground Lease Footprint (for private enterprise development) overhead for the private hangar Development • Lease Period tTl developer. Thus, our analysis shows p • Hangar Lease Rate per Square Foot Decision • Ground Lease Rate per Square Foot the lowest breakeven potential prices • Annual Maintenance Costs (if any) for a private developer of roughly Model • Inflation Rate • Percent Financed by Loan $345 per month for T-hangars and - Loan Interest Rate $4.26 per square foot per year for • Loan Length (in years) conventional hangar space. This Figure 7-2 —Inputs to Hangar Decision Model compares to the public development breakeven proforma pricing of $470 per month for T-hangars and $5.82 per square foot per year for conventional hangar space. COMBINATION OF CITY AND PRIVATE HANGAR DEVELOPMENT In all likelihood, the development of hangars at LXT will be a combination of public and private development because there is generally a shortage of capital at municipalities. With all of the public projects needing investment such as roads, sewers, schools, and so forth, it is difficult to find capital that has not already been reserved for a project. Given the cost of hangar development, combined with the market rate structure, hangar development is feasible for the City. The only question would involve vacancy rates. However, using waiting lists and customer deposits for reserved space, this risk can be minimized. 7.2.2 RECOMMENDED HANGAR DEVELOPMENT STEPS I Given the economics described above, the recommendation of this Business Plan is as follows: 1. Prefer City Construction Option: The City should construct as many conventional hangars as they are financially capable of doing to accommodate demand. 2. Private Enterprise Included: Whatever demand is left over to be developed should be given to private enterprise. It should be recognized that their cost differential will price their hangars lower than that of the City, thereby filling them up first. 3. Possibly Limit Private Enterprise to T-Hangar Development. One option around this issue would be to restrict private enterprise to the development of T-hangars, leaving the corporate conventional hangar development to the City. Conventional hangar clientele are generally willing to pay more per square foot of hangar space than T-hangar clients. Therefore, the higher prices caused by municipal development of the JAI R.A. Wiedemann & Associates, Inc. in association with CMT 7-6 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 conventional hangars can be more readily absorbed. Because T-hangars clients are not willing to pay higher prices, the City can avoid this lower -return investment of their capital by focusing on conventional hangar development. This is an especially important strategy for municipal hangar investment. Table 7-3 shows the proforma results for the hangar development at an estimated 50 percent split between City and private development. OMPONENT PARTS OF THE PLAN FOR CONTINUED improved terminal amenities and services are linked to the branding program. That is, new amenities and services should be offered through the lens of the new brand. Excellent brands ensure that every action, every expenditure of money, supports the brand and does not send any counter or confusing signals. 7.3.1 COMPONENTS OF IMPROVED TERMINAL AMENITIES AND SERVICES I This Business Plan recommends the following components for improved terminal amenities and services: ► New Terminal Building: When the East Side terminal area is developed, a new, larger terminal building is needed to accommodate aviation business travelers and the crews of their aircraft. This would include: ♦ Crew Suite ♦ Executive Lounge ♦ Conference Rooms ♦ Coffee/Retail Shop ♦ Car Rental Facilities ♦ Wi-Fi capability on the Ramp ♦ Wash Bay for Aircraft ► Aircraft Control Tower: When the activity measures reach the minimum threshold, the City should seek a contract tower. ► Aircraft Repair & Avionics Sales: For full corporate use of LXT, services for business jet repair and maintenance are needed. ► Flight School: This component of improved service offerings will be discussed separately in its own section of the report below. ► U.S. Customs: The possibility of U.S. Customs services is being examined to determine if there is enough demand to support the cost of providing them. ► Other FBO Amenities and Services: Shown below in Figures 7-3 and 7-4 are the amenities and support services offered by the FBO, Signature Flight Support, at Wheeler Downtown. Items on these lists that are not currently available at LXT should be considered for provision, where practical. IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-7 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 7.3.2 REASONS FOR UPGRADING AMENTIES AND SERVICES I Reasons for upgrading the amenities and services include the following: ► Many of these items are included in the branding program for the Airport. ► To attract and keep corporate and high -paying business customers, the continuation of outstanding service is a prerequisite. ► Examination of competing airport services and amenities shows that Wheeler Downtown Airport has amenities for pilot flight Signature Flight Amenities 24 Hour Surveillance Business Center Computers Conference Room Conference Call Capable Conference Rooms Large and Small Copier, Printer Courtesy Crew Cars and Transportation Crew Room, Snooze Room Customs and Immigration On Airport WiFiAmernet Access Long Term Vehicle Parking Passenger Lounge Pet Friendly Ramp Side Vehicle Access Rental Cars by National Rest roo ms/Showers Vending Machines ATM Machine Candy, Fruit, Popcorn, Muffins, Tea, Bottled Water Freshly Baked Cookies Hot Chocolate, Starbucks Coffee Complimentary Magazines Complimentary Toiletries Dry Cleaning Newspapers Satellite TV Shoeshine Machine planning, showers, Figure 7-3 — Signature Flight Support Amenities office, and lounging. They also feature Signature Flight Services — a national chain of high - end FBOs ♦ See Figure 7-3 for Signature Flight Amenities. ♦ See Figure 7-4 for Signature Flight Support Services ► Given that Wheeler Downtown has 65 of the 75 basedjets in the region, it is apparent their amenity and service model is working. Such a program is worth emulating to the degree possible. Table 7-3 presents a proforma of the potential impact of these amenities and services on the bottom line. Because increased demand at LXT will likely be caused by three different programs (hangar development, continued improvement Jet A and 100LL Line Service Volume Discount Aircraft Lubricants Aircraft Maintenance Aircraft Short & Long Term Parking Airstairs Baggage Carts, Belt Loader Catering 3rd Party, Catering On . Site, Catering Refrigeration Deidng/Anti-ice Dishwashing Engine Preheat Flight Planning GPU KVA, VDC Heated Hangar Helicopter Handling Hotel Backing Ice Laundry Service - Off Site Lavatory Service Limousine Service Nitrogen, Oxygen Overnight & Transient Hangar Space Potable Water/Water Service Sports Charter Handling Taxi Service Tie Downs VIP/Head of State Handling Weather Planning Service 100,000 sq. ft. Hangar 200,000 sq. ft. Ramp of amenities and Figure 7-4 — Signature Flight Support Services services, and branding), the resulting increased revenues could be attributed in thirds to each proactive strategy. All three programs will be needed to increase demand for the baseline forecasts as well as the additional attraction of business aviation above the baseline. III R.A. Wiedemann & Associates, Inc. in association with CMT 7-8 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 LJ R I T January 2027 7.3.3 RECOMMENDED AMENITY AND SERVICE UPGRADE STEPS I The recommended steps to continued improvement in amenities and services at LXT are simply to follow the current path of management. This would include the following: ♦ Gauge the Market. Airport Management should continuously gauge their clients as to preferences concerning amenities and services. This can be through informal discussions with pilots, formal surveys, or Internet research. ♦ Study the Signature Flight Model: Although Signature Flight Support is a multi -million dollar enterprise, there are some low-cost amenities and services that they offer which are not available at LXT. These may be added inexpensively, while at the same time having a larger effect on customer service satisfaction. ♦ Prioritize Larger Cost Amenities: Each new larger cost amenity or service should be considered in light of its ability to draw the target segment of demand — in this case, corporate aviation — to LXT. This Step is linked to Step 1, where knowledge of the local market is key. ♦ Work with Branding Consultants: In rolling out any new amenity or service, the maximum impact on the market should be sought. This would include branding and marketing campaigns around these actions. This task is one of continuous monitoring and assessing of the market needs. There is no exact set of specifications. While studying successful operations in different states, there is value in seeing what works locally. This means using Wheeler Downtown as a type of model. LXT should not aspire to be an exact replica of Wheeler Downtown. Rather, LXT should use what works and build the amenities and services in a cost-effective manner over time. The adage that Rome was not built in a day applies here. It will take time, patience, and a lot of money to make LXT match its branding goals. N EXCEPTIONAL AIRPORT BRAND IS BUILT UPON excellent airport facilities, amenities and services. As LXT continues to put its best foot forward for every Airport visitor by continuously improving facilities and services, it is essential to begin the process of implementing the various elements and corporate focus of the new brand. 7.4.1 ELEMENTS OF AIRPORT BRANDING I This Business Plan recommends the following elements for introducing a fresh Airport brand: ► Establish a new Airport name: IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-9 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M I S S O U R I 2027 ♦ Replace "Municipal" with "Regional" or "Executive." , ♦ Strongly consider including "Kansas City" in name. Officially register the new Airport name with the Federal Aviation �. Administration. I T Y Design a unique Airport logo and establish guidelines for: i 1 ♦ Specific colors ♦ Recommended uses ♦ Sizes ♦ Logo positioning in various applications GR ATMR SAS Kl�NSl�5 Construct a standalone "corporate" themed Airport website. Contract an Airport branding and marketing firm to: Ry ♦ Further refine the marketing plan. RfdIpMAL AIRPORT ♦ Promote the new Airport name and logo. ♦ Recommendations for unique logo wardrobe. Signage, and LY merchandise to promote new brand. �y� ♦ Refine a brand specific "Tag Line" that helps position LXT as X Corporate Airport of choice in the service area. ♦ Implement media outreach. Figure 7-5 - sketch Logo samples ♦ Develop a targeted campaign designed to reach business aircraft owners in the immediate region. ♦ Develop strategies to attract new customers. ♦ Further develop a comprehensive public relations program. ♦ Further develop an Airport press kit. ♦ Examine how to enhance existing and to develop new specialized aviation amenities and services. ♦ Develop marketing initiatives to increase the use of LXT by aviation clubs, associations, and organizations. ♦ Develop materials for promoting aviation and non -aviation land development. ♦ Help the City determine how to brand its FBO, perhaps separately from LXT. Produce a new Airport video for the website that provides: ♦ An introduction to the new Airport name and branding elements. ♦ A brief history. ♦ Current developments. ♦ Vision of the future. Develop a targeted social media outreach that incorporates the new Airport brand and presents a professional presence on Facebook, Instagram, Twitter, and other viable platforms. 7.4.2 REASONS FOR NEW BRANDING I Reasons for revising the Airport name and brand include the following: Iof R.A. Wiedemann &Associates, Inc. in association with CMT 7-70 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M 13 5 0 U R I January 2027 ► The attraction and retention of corporate aviation is a key objective to the financial sustainability of LXT. ► It is understood that improved facilities, amenities, and service are linked to the Airport brand. ► The most likely pool of potential new "based" customers - specificallyjet aircraft — consists of tenants currently based at other area Airports. ► A review and contrast of the amenities offered by Signature Flight at Wheeler Downtown Airport (home to 65 of the 75 based jets in the region) as highlighted in Figures 7-3 and 7-4 above helps identify potential areas of improvement for LXT and the need for a fresh image for LXT. ► As LXT lingers in its perceived — decades old — identity within the service area, the ability to persuade locally based tenants of other area airports to seriously consider LXT as a viable alternative is diminished without new branding. ► It is essential that LXT establish a new brand that represents positive changes at the Airport and what it is ultimately becoming. 7.4.3 RECOMMENDED BRANDING AND MARKETING STEPS I The recommended steps to establishing and promotion a new brand at LXT include the following: 1. Establish a New Airport Name: To strengthen the Airport's status within the corporate aviation community, it is essential to replace "Municipal" with "Regional" or "Executive". To enhance the immediate geographical awareness of pilots planning visits to the region, it is further recommended that the City strongly consider including "Kansas City" in Airport name. One suggested example is "Greater Kansas City Regional Airport". 2. Officially Register the New Airport Name: Due to the time involved (up to a year or more) in making an Airport name change official with the Federal Aviation Administration, it is recommended that this process be initiated as soon as a new Airport name is established to ensure the new name is included in all official records and documentation. 3. Secure New Airport Web Address: Concurrent with the FAA registration process, the City should also secure the domain name for the new Airport website. Budget permitting, it would be wise to secure multiple domain names to prevent malicious meddling by others. One suggested address is "www.FLYLXT.com". 4. Authorize the Design of a Unique Airport Logo: The City should contract an Airport branding and marketing firm/professional to design a unique Airport logo, with guidelines for specific colors and recommended uses, sizes, and positioning of the Airport logo to maintain consistency and for maximum brand awareness. S. Construct a Standalone "Corporate" Themed Airport Website: The City should authorize the construction of a standalone "Corporate" themed Airport website featuring the new Airport logo and branding, and linked to the City website. 6. Develop Marketing Plan: The City should use their Airport branding and marketing firm to further refine the marketing plan to focus upon promoting the new Airport name, logo, IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-11 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 and implementing media outreach to attract new customers. Detailed steps for this recommendation are outlined in Section 7.4.1 above. 7. Produce a New Airport Video: It is recommended that a fresh video be produced that highlights the new Airport brand and mission, along with a brief history, current developments, and vision of the future. This may be hosted on the new Airport website and distributed via social media as a method for attracting visitors to the website. 8. Develop a Targeted Social Media Outreach: The City should authorize a fresh new targeted social media outreach to introduce the new Airport brand, generate fresh interest in the Airport, and present a professional presence on Facebook, Instagram, Twitter, and other viable platforms. In its most ideal role, LXT is the "front door" to Lee's Summit and the gateway to the region's business community. The process of branding and marketing the Airport requires constant awareness of putting a "best foot forward" - not just for the Airport, but for the region at large. The first impression of entire area for many business travelers will be what they experience at LXT. In this sense, it is vital the entire Airport staff and City management continue to share and enhance an esprit de corps and positive brand awareness that is presented at all times. This is one reason for moving the main terminal area to the east side — it can upgraded and improved from the current location. HE DEVELOPMENT OF AN AVIATION EDUCATION PROGRAM, flight school, or aircraft mechanics training program at the Airport is a recommendation of the Business Plan. While the flagship program would be for flight training, the Airport would be a suitable location for both aviation education and aircraft mechanics training. 7.5.1 COMPONENTS OF AN AVIATION EDUCATION/FLIGHT SCHOOL I For pilot training, the COVID-19 epidemic has reduced the need for airline pilots in the short term. The assumption for this Business Plan is that commercial aviation demand will be essentially pushed back at least three years, but because the economic fundamentals were not at fault, growth will likely continue as it had in the pre-COVID-19 period. If anything, there is now some "breathing room" to develop a longer -range plan for a flight school. Component parts of the recommendation include the following: ► Work with Summit Technology Academy, St. Michael the Archangel High School, and the University of Central Missouri to establish an on -Airport aviation education, flight training, or aircraft mechanics program. ► Develop space for classrooms (ground school or mechanics workshops) at the Airport. ► Jump start the flight training program by attracting a flight school to the Airport. IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-72 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 ♦ An existing flight school could manage a university or high school program as a subcontractor. ♦ A modest university -type program could potentially attract 80 flight students, between 8 and 10 training aircraft, and generate roughly 20,000 annual aircraft operations. ► Tie any increased activity from the program to the need for an Air Traffic Control Tower or remote/virtual Control Tower. There is currently an Experimental Aircraft Association (EAA) presence at LXT, which includes a Young Eagles group. This group is made up of young people ages 8 — 17, who desire to get involved in aviation. In 2020, the LXT EAA activities since March have been canceled because of COVID-19. However, the EAA program is strong and shows the interest in aviation in the community. 7.5.2 REASONS FOR ATTRACTING AN AVIATION EDUCATION PROGRAM I There are a number of reasons why the City should seek to attract an aviation education program to LXT. These include: ► Increased Aircraft Operational Activity: This factor is important for LXT on at least two fronts. ♦ More training activity at LXT will increase fuel sales for AvGas (100 LL). Estimates of an additional 40,000 gallons per year have been made. Margin from the fuel sales will help the Airport's bottom line financially. ♦ Additional activity at LXT will help justify an Air Traffic Control Tower. Studies for these Towers require a cost/benefit analysis, along with minimum levels of aircraft operations. ■ An added benefit of an ATCT is that it is often a prerequisite for fractional jet aviation activity. That is, companies like NetJets and Flexjet prefer the safety of controlled airspace (Class D) at an airport. ► An Aviation Education program would serve as an excellent public relations program to the community. Young people often involve their parents and relatives in aviation activities. Good public relations translate into political capital when Airport funding questions arise at City Hall. ► Other Aviation Programs: Even if there is no flight training component, the Airport would be an excellent location for aviation mechanics/technology training and aviation management programs. 7.5.3 RECOMMENDED STEPS FOR AVIATION EDUCATION PROGRAM I The development and interest in an aviation education program at LXT is mostly dependent upon outside organizations. The initiatives that the City can take to encourage the use of LXT for these programs include the following. IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-73 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 1. Develop Airport Lab Space: As a part of the R-7 School District, the City has the ability to coordinate programs between Summit Technology Academy (STA) and LXT for an Airport Lab space proposal. This would place students at an airport location. The Business Plan assumes that some space on the East Side will be dedicated to the STA or similar program. 2. Coordinate with University Program: The Missouri Innovation Campus building is shared by STA with the University of Central Missouri. This connection between STA and UCM needs to be explored to determine the potential viability of an on -airport classroom and/or flight training program at LXT. 3. Seek Private Flight School. If talks were to go well with UCM, the next step would be to seek to attract a private flight school to LXT. This would be discussed as a key step in attracting a satellite flight training program from the University of Central Missouri. 4. Attract Other Aviation Programs: Although flight training is a priority, the development of other aviation programs at the Airport would be appropriate. STA has an aviation maintenance track, drone pilot track, avionics track, and an aviation management track of studies that would all fit nicely in an airport environment. If no progress is made with UCM, a similar set of talks could be initiated with the University of Missouri — Kansas City (UMKC) campus. Currently UMKC has an unmanned aircraft flight training program for industrial applications. Discussions with the University representatives could reveal whether or not there is a desire to expand this program into other aviation fields. Table 7-3 presents the proformas associate with an aviation education program at the Airport. The additional revenues are separated in the Table to show leased space income versus activity measures such as fuel flowage fees. ON -AVIATION LAND USE AT LXT DESCRIBES DEVELOPABLE parcels without airfield access. Two properties to be acquired over the planning period include area on the northeast section of the Airport and the property directly south of Hangar One. These properties will be aeronautical use or support and as such are discussed in the Master Plan. For non -aviation property on the Airport, industrial development is considered highly compatible for non -aviation airport property development, partially due to the capability of these entities to absorb the noise impacts from airport activity. In addition, passive solar energy generation is compatible, assuming glare and sun reflection issues are addressed in the design. Commercial/Retail development are also considered compatible development for airport activities, while anything characterized as a residential area is not. 7.6.1 COMPONENTS OF NON -AVIATION PROPERTY DEVELOPMENT I Components of the Recommended Plan for non -aviation property development include the following: IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-74 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 ► Identification of Non -Aviation Developable Land at LXT: Two large parcels have been identified for potential non -aviation development. ♦ North Side Parcel: This parcel is located along Strother Road and includes roughly 16 acres of property for potential development. Because of terrain slopes, development ♦ South Side Parcel: This parcel is potentially accessible from NE Town Center Boulevard. It contains approximately 30 acres and it also has some terrain sloping, but not to the degree as the North Side Parcel. ► Development Options: There are two primary options for developing the non -aviation property: ♦ The traditional route would be to engage a commercial real estate broker and advertise with on -site signage and Internet placements on the City's webpage and Airport website. IN R.A. Wiedemann & Associates, Inc. in association with CMT 7- 75 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M 13 5 0 U R I January 2027 ♦ The second general option is for the City to retain a developer, who would then prepare and develop the property as a turnkey project. 7.6.2 REASONS FOR DEVELOPING NON -AVIATION PROPERTY I In total, there are about 46 acres of developable land on airport property. There are a number of reasons for developing this property at LXT, including: ► Property that does not have access to the airfield and would otherwise be unproductive can be used to produce non -aviation revenue. ► As an Enterprise Fund, the Airport needs to be as financially self-sufficient as possible. ► FAA grant assurances also require the Airport to charge fees and become as financially self-sufficient as possible. ► With compatible development, non -aviation property can serve as a buffer to residential properties near the Airport. ► There are non -aviation land uses that actually support airports, including restaurants, car rental locations, hotels, etc. While the absorption rate of commercial office space may be slow because of COVID-19, other types of commercial development, including light industrial and retail may not be impacted as greatly. Table 7-3 presents an estimate of the revenues that can be gained through development of non -aviation property. It is estimated that over the planning period, 25 percent of the available land will be developed. On a cumulative basis, this revenue enhancement strategy would add roughly $5.2 million to the Airport's bottom line over the 20-year planning timeframe. RECOMMENDED DEVELOPMENT OPTIONS There are two primary options for development of non -aviation property: commercial real estate and solar energy. These are not mutually exclusive. That is, both types of development can occur at LXT. ► Commercial Real Estate: The commercial real estate market is comprised of several sectors: office market, industrial market, retail, and multi -family housing market (condominiums, rental properties). For LXT, non -aviation property development should focus on the industrial and retail market. Residential multi -family developments are not compatible with the Airport land use, and office market real estate has suffered a glut in the region and nationally due to work at home orders surrounding the COVID-19 pandemic. ♦ The retail market has the higher rents than industrial, ranging between $8 and $17 per square foot per year, depending on location, size, and condition. Average cost is about $13 per square foot'. ' Source: Newmark Grubb Zimmer, "1 Q 2020 Kansas City Industrial Market Report." IMF R.A. Wiedemann &Associates, Inc. in association with CMT 7-76 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 ♦ The industrial market has a much lower cost per square foot as these buildings require large spaces for materials storage and handling. Lease rates in the area for industrial and warehousing space run in the range of $4-$10 per square foot per year, depending on location, size, and type of use. Average cost is about $7 per square foot'. ♦ Ground lease rates are often tied to the market rental rates for the type of property. Thus, higher land lease rates can be gained from retail leases than from industrial leases. ♦ However, large retail sites must have road frontage and good highway access. That would eliminate most of the property in the south side parcel from retail development. ► Solar Energy Production: The second type of revenue producing non -aviation land development at LXT involves the production of solar energy. As described in the following section, the development of a solar farm with sales of electricity to the local power grid are not profitable. Thus, the development of solar energy could be used to offset the retail price of electricity used on the Airport, which costs about $60,000 per year. 7.6.3 NON -AVIATION LAND USE — SOLAR ENERGY I The strategy for potential development of solar energy at LXT must explained in somewhat greater detail because of the various cost issues. In this regard, Missouri has more than 200 sunny days per year, for an average of 4.5 to 5.0-kilowatt hour (kWh) per square meter per day, according to the U.S. Department of Energy's National Renewable Energy Laboratory's (NREL) solar maps. Effective August 28, 2018 per Senate Bill 564 (2018), RSMO 393.1670 mandated that electrical corporations make solar rebates available for new or expanded solar electric systems, limited to up to twenty-five kilowatts (25 kW) per system for residential customers and up to one hundred fifty kilowatts (150 kW) per system for nonresidential customers. The available rebates include a twenty-five cent per watt ($0.25/W) rebate for systems that become operational after June 30, 2019, through December 31, 2023. Missouri is one of only a few states to have a carve -out for solar written into its Renewable Portfolio Standard (RPS), and it is the only state to have passed such legislation by an overwhelming voter margin. By 2021, investor -owned utilities will be getting 15 percent of their power from renewable resources, with two percent coming from solar. With a modest estimate for growth between 2009 and 2021, the annual solar energy requirement in 2021 will reach just under 170 GWh, or approximately 130 MW of solar capacity. Consultant discussions with the manager of alternative energy sources at Evergy (the merged company of Kansas City Power & Light and Westar Energy in 2018) representatives indicated a somewhat bleak future for solar photo -voltaic (PV) energy feasibility. First, almost all electricity sold is produced by the company itself, as it is integrated vertically and owns all of its generating facilities. Currently, Evergy generates 37 percent of its electricity from renewable sources — mainly 2 Ibid IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-77 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 wind turbines. This is more than twice the 15 percent mandate. The solar PV systems cannot compete with the cost or efficiency of wind, particularly in the Missouri/Kansas region. Evergy will pay 2-cents per kilowatt hour for energy bought from solar sources. For 1 gigawatt hour per year, approximately 2.8 acres of solar farm is needed. This translates into about $7,150 per acre per year in revenues. A 150-kilowatt system for non-residential construction would be eligible for a $0.25 per watt rebate. Thus, the maximum rebate is $37,500 on such a system. When compared to the cost of roughly $500,000 per acre to develop, it can be shown that the system cannot pay for itself, even with the rebates. With a no -interest loan, it would take more than 65 years to pay off the principal. OPTIONS FOR SOLAR FARM DEVELOPMENT There are two options for solar farm development on non -aviation property at LXT. These include: ► Construction Grant: One option for feasible development of a solar panel farm is to have the construction paid by a grant of some sort. Then, a 10-acre array could generate about $71,500 per year. Of course, energy companies are highly regulated and, in the future, they may be required to pay more for wholesale electricity from renewable sources entering their grid. ► System to Offset LXT Electric Use: An alternative approach is to develop a solar electric panel farm for City use in offsetting electric costs at LXT. In 2019, electric costs for the City at the Airport were almost $60,000. Using that as the retail price of electricity, any offset generated on the Airport would be compensated at full retail price rather than the 2 cents per kilowatt hour. Currently, the average cost of residential power in Lee's Summit is 10.61 cents per kilowatt hour.' At LXT, examinations of utility bills show a variety of rates paid on the Airport — averaging about 19 cents per kilowatt hour. However, for this analysis to be conservative, an average of the high and low rates was used to get 14.82 cents per kilowatt hour. Discussions with Evergy indicated that the full retail rate would be reduced, if the power generated by the system were connected behind the meter. In other words, the reduced power consumption would be the means of reducing the utility cost, rather than getting rebates from the power company. For $60,000 at 14.82 cents per kilowatt hour, a total of405,000 kilowatt hours would be consumed. Translating this into acres of solar panels yields about 1.2 acres. At $500,000 per acre it would cost roughly $600,000 to develop a solar farm to cover the annual electricity needs for the City at the Airport. At these rates, it would take about 10 years to pay off the costs of construction, assuming a no -interest loan. This is much more feasible than the development of a solar farm to feed the electric grid. Because the solar panels last up to 20 years, the City should consider development of at least 1.2 acres of PV energy. 3 Source: Electricity Local Website: https://www.electricitylocal.com/states/missouri/lees-summit/, accessed 10/19/2020. IMF R.A. Wiedemann &Associates, Inc. in association with CMT 7-78 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 LJ R I T January 2027 7.6.4 RECOMMENDED STEPS FOR NON -AVIATION PROPERTY DEVELOPMENT I The Recommended Plan for developing non -aviation property at LXT includes the following steps: 1. ALP Update: Identify non -aviation property for development on the Airport Layout Plan. With a consultant, layout the property in accessible parcels. 2. Land Release: Initiate the land release process with FAA. The release does not have to be for property sale, but rather, to lease for a non -aviation use. 3. Solicit RFI: Solicit Request For Information/Interest (RFI) on developing a small solar PV system of 1-2 acres on non -aviation property. Cost information is important, along with system set up information needed to reduce electricity costs on the Airport. 4. Advertise Property. Use in-house staff or commercial real estate broker to advertise non - aviation Airport property. Seek to lease property for the long term, if possible. S. Sale Option: If property sale is the only way to move the parcels, examine the return on assets as compared to a long-term lease. Given that the Airport produces leases which are priced at $0.51 cents per square foot for a non - aviation ground lease, the sale of property for non -aviation use should be no less than $225,000 per acre (assuming 10 percent cap rate) and as high as $370,000 per acre (assuming a 6 percent cap rate). ANAGEMENT AND POLICY ACTIONS MAY HAVE NO immediate financial return, but instead, address the practical issues of operating LXT. Recommendations deal with the Airport accounting structure, Airport management structure, staffing, lease policy, control of land surrounding the Airport, retention of existing business/corporate clientele, public outreach, and educational partnering. 1. Airport Accounting Structure: LXT is currently set up as an enterprise fund for the City. As mentioned, most enterprise funds are self-supporting, but not all are. Examination of the Recommended Plan proforma in Table 7-3 shows a long-term revenue surplus will be generated at the Airport. This points to financial self-sufficiency for operational costs. There may be some large capital costs that require subsidy from the City, however, that should not be a reason to change the accounting structure. There is a fee charged by the City for its overhead costs (G&A) associated with Airport operations. These costs include staff assistance for legal, planning, finance, and other administrative functions. In the past, the G&A fee has been forgiven by the City to allow the Airport to put more money back into facility development. IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-79 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 For the future, the City will cease the G&A forgiveness, and the resulting effects on Airport revenues and expenses are included in this analysis. The City has estimated that the current annual utilization of resources to be $115,000. Although the fee is subject to change throughout the planning period based on resource allocation by the City, this analysis will estimate future charges to remain at a flat rate of $115,000 per year. The end result of our analysis is that the Airport should remain an enterprise fund. The benefit of financial flexibility is needed because of the different nature of airport finances versus other more stable City departments. As a revenue -producing enterprise, the Airport presents many options for investment, rate structuring, and public -private partnerships. At the same time, it must adjust to the competitive market forces and economic factors that are in play regionally. 2. Airport Management Structure: Evaluation of the existing management structure and corresponding oversite from the Airport Authority indicated that there is no need to change the City's organization for the Airport. 3. Airport Staffing: Over the planning timeframe, City will need to increase Airport staffing as aviation activity levels continue to rise. This will include more line personnel for aircraft fueling, a second concierge person for premium corporate aviation services, and at least two more facility maintenance people for additional facilities and snow removal. Examination of the forecast of fuel sales indicates the need for an additional four line personnel over the period. In addition, three other maintenance and service personnel are needed, along with two additional administrative assistants to help with invoicing and collections. In total, nine (9) additional FTE staff personnel (above the existing 10 FTEs) are anticipated to be needed over the 20-year period. Of the nine additional FTE staff, 2.5 are in response to the additional activity from the implementation of this Business Plan. In this regard, to accommodate the increase in corporate aviation use, another concierge and 1.5 FTE line staff are included in the overall estimate for the planning period. To ensure that all employees at the City's FBO were rewarded for their service, attitudes, and accomplishments, it is recommended that a program of incentives be created at the Airport that would include consideration of total fuel sales margin (a measure of the City FBO's success), number of aircraft handled, written commendations from corporate clients of the Airport, and so on. These incentives would adhere to City policies and seek to mirror private industry. The goal is to attract and keep the best employees at the Airport. 4. Lease Policy: It is recommended that a comprehensive lease policy for the Airport be developed in the future. The lease policy should address a number of topics including: ground leases, hangar reversions, renewals, lease terms, FBO provisions, and other issues. The lease policy should not constrain business activity at the Airport. Rather, it should be IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-20 Lee's Summit Municipal Airport 19 Business Plan LEES SUMMIT R I 2027 designed to enhance business activity and protect the Airport from disputes and any FAA grant assurance investigations. 5. Control of Land Surrounding Airport. LXT is located near residential development. To the north is Lakewood subdivision and to the south are residential subdivisions closer to the center of Lee's Summit. To the east is Jackson County's Lake Jacomo and its surrounding parkland, while to the west, there is rural residential and farmland (also in Jackson County). While land already developed for residential uses could be considered grandfathered as a land use, undeveloped property near the Airport should be either preserved as a noise buffer or controlled through easements. It is important to note that the City is currently engaged in a strategic planning process, and that there has been some coordination between the Aviation consultant with the City planning consultant to ensure that the City's comprehensive plan include Airport growth and development as a priority. Some municipalities with airports do not restrict residential developments, but instead create easements that make it impossible to complain about the airport noise or its operation. For example, language from the City of Redlands, CA covering such an easement includes the following: "Grantor, for itself, its heirs, administrators, executors, successors and assigns, does hereby waive, and release any right or cause of action which it may now have or which it may have in the future against Grantee, its successors and assigns, due to such noise, sound or shock waves, vibrations, odors, fumes, dust, fuel particles, smoke, light thermal waves, air quality changes and other results in said airspace that may be caused or may have been caused by the operation of aircraft of all types now known or hereafter designed and used for navigation of, or flight in, the air, by reason of any use ancillary or incidental to the operation of the Dominant Tenement and by reason of any operational incidental effects thereof including such as may occur in and from take -off, land and approach patterns into and from the Dominant Tenement. This waiver and release includes, but shall not be limited to, claims, known or unknown, for damages for physical or emotional injuries, discomfort, inconvenience, property damage, death, interference with use and enjoyment of property, diminution of property values, nuisance or inverse condemnation, or for injunctive or other extraordinary or equitable relief. Grantor, for itself, its heirs, administrators, executors, successors and assigns, agrees that Grantee shall have no duty to avoid or mitigate such damages by, without limitation, setting aside or condemning buffer lands, rerouting air traffic, erecting sound or other barriers, establishing curfews, noise or by enacting other regulations. Grantor acknowledges and agrees that this waiver applies to all claims for injuries, damages or losses to Grantor's person and property, real or personal, (whether those injuries, damages, or losses are known or unknown, foreseen or unforeseen, or patent or latent) that Grantor may have against Grantee." The Grantor is the property owner and the Grantee is the City. The above paragraph covers almost all contingencies. The philosophy of such an agreement is that a buyer or developer knows what they are getting into when they buy or develop property near an airport. As such, they are not entitled to any compensation for grievances, even if conditions worsen from when they bought or developed their property. Sometimes, this is preferable to strict zoning for some cities because it does not limit the tax base, but at the same time, eliminates all of the usual public conflicts between residential and airport land uses. IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-27 Lee's Summit Municipal Airport 19 LEFS SUMMIT Business Plan M 13 5 0 U R I January 2027 Other traditional options to prevent future incompatible land uses from being developed around the Airport include: ► Zoning for land use compatibility, particularly off runway ends. ► Restriction of noise -sensitive land uses adjacent to the Airport. ► Building permit processes that could be used to control future non -compatible land uses and/or Airport hazards that may be proposed. Because LXT is located very near the western city limit boundary, any land use controls would have to be coordinated with Kansas City (KCMG). Unlike the state of Texas, Missouri cities do not have inherent extraterritorial jurisdiction of unincorporated county lands. Instead, if a city in Missouri desires to impose zoning on extraterritorial property, it must first annex that property into the city. This is not likely at Lee's Summit. Therefore, any zoning outside the City limits must be coordinated with and enacted by KCMO. In 2020, these talks were initiated and are currently ongoing. 6. Retention of Existing Business Clientele: Airport Management is already doing a good job and has taken steps to ensure client retention by spending time servicing the needs of these tenants. Airport Management should continue to engage existing Airport users (clients and tenants) to solicit feedback on local economic and service issues. 7. Internal Airport Branding Actions: There are a number of actions, internal to the City, that can be initiated for Airport branding. These actions cost little or nothing and can be accomplished prior to hiring a branding firm or marketing consultant. Most of these actions require a decision from the City including: ► New Airport Name: The City needs to decide on a new name for the Airport that incorporates the desired upgraded brand. Suggestions for these have been provided in this Business Plan and include: Lee's Summit Regional or Executive Airport, Kansas City Regional or Executive Airport, Greater Kansas City Regional Airport, and Heart of America Air Center. ► Implement Upgrades in Conformance with New Brand: Prior to the rollout of a new brand, the City should ensure that there are no glaring contradictions either with facilities or services, relative to the new brand. The most successful branding upgrade occur when the actual facilities and service match the new hype. ► Airport Social Media: The City should ensure that the Airport's social media platform is upgraded in conformity to the new brand. There should a mechanism to regularly change the content, thereby attracting continuous check -ins and new views. The City should also consider a tagline for the Airport. A tagline for the new Airport name should add something that is not already inherent in the name. Given that the Airport is intended to serve a number of different aviation components (small general aviation, flight training, aviation education, corporate aviation, etc.) and that the future desire is to expand IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-22 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M 13 5 0 U R I January 2027 that reach, a fitting tagline could read: "We do it all!" or "Kansas City's best GA alternative!" or "Growing with you!", or "We mean business!" etc. HE REVENUE ENHANCEMENT STRATEGIES RECOMMENDED FOR LXT represent growth opportunities, and as such, will impact baseline projections of revenues and expenses. For this process, a number of assumptions for each strategy were made, along with the resulting impact on net revenues. Table 7-3 presents an optimistic forecast of how these enhancement strategies could impact the revenue and expense picture for the Airport, if the assumptions for each scenario are met. The estimates in the projection of revenues and expenses are based on the following assumptions over the planning period: Attraction of Corporate Aviation: ► Additional 7 based jets above the Master Plan forecast. ♦ Each additional jet consumes 25,000 gallons of jet fuel per year. ► Additional 3 based turboprop aircraft above the Master Plan forecast. ♦ Each additional turboprop consumes 5,000 gallons of jet fuel per year. Corporate Aviation Hangar Development: ► An average 5,000 square feet conventional hangar space requirement for each based jet. ► An average 2,000 square feet conventional hangar space requirement for each based turboprop aircraft. ► Conventional hangar development includes a coinciding office space requirement of 10 percent total conventional hangar space. ► Conventional hangar capital development costs (when developed by City) at $80 per square foot. ► Recognizing the scarcity of capital, 50 percent of conventional hangars developed by City; 50 percent constructed by private developers. Additional Staffing ► Additional Airport Expense: 2.5 FTE staffing requirement to accommodate additional corporate aviation demand. Aviation Education/Flight School: ► Additional 8 based single engine aircraft. ♦ Each additional flight school single engine aircraft consumes 5,000 gallons of 100LL AvGas per year. ♦ Flight training will generate roughly 20,000 annual aircraft operations when the school is fully operational. ► City development of a 10,000 sq. ft. conventional hangar for flight school aircraft storage and maintenance. IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-23 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M I S S 0 U R I January 2027 Non -Aviation Property Development ► Total of 46 acres available for development. ► To be conservative, 25 percent of total available acres to be developed over the planning period. ► Lease Rate of $0.51 per square foot. ► Solar Farm Development: ♦ $600,000 capital investment ♦ 1.2 Acres of Solar Panels ♦ $60,000 per year revenue equivalent (offset electric expense) IN R.A. 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OL U _ N O p 3 C N u N Ln :C W N N a v a `a ow ' N (3) k = a) a� CD c W N Ln a = o = , or i � a, Xo- °1 of a O° C )= Lu R = C O 0 01 0 �• O O1 ar a W O N C V +' 0 c O L y p m° p a o o 0 0 0 o i+ g i+ g _m o ai ua �' a` a� c c O ` • LL Q � Q Q Q o ilo N or 19 Lee's Summit Municipal Airport LEE'S SUMMIT Business Plan M I s s o U R E 2027 7.8.1 IMPLICATIONS OF FINANCIAL RESULTS I Using the financial production results shown above, implications about revenue strategies can be drawn. Figures 7-6 and 7-7 show the cumulative impacts of each major revenue enhancement strategy. As shown, there is a rank order of magnitude for cumulative returns over the 20-year planning period: ► Attraction of Corporate Aviation - $5.15 million ► Non -Aviation Property Development - $3.43 million ► Flight School - $2.16 million ► Solar Farm - $868,300 $$6,000,000 $5,000,000 $4,000,000 S3,000,000 $2,000,000 S1,000,000 So 55,151,030 Corporate Aviation $2,161,275 Flight School Figure 7-6 — Cumulative Revenue Production by Strategy $3,432,808 $868,319 Solar Farm Non -Aviation Property Development i"i R.A. Wiedemann & Associates, Inc. in association with CMT 7-27 19 Lee's Summit Municipal Airport LEE'S SUMMIT Business Plan M I S S D U R I 7% 2027 ■ Corporate Aviation 44% ■ Flight School ■ Solar Farm ■ Non -Aviation Property Development Figure 7-7 — Percentage of Incremental Revenue Totals by Strategy The Attraction of Corporate Aviation strategy incorporates Hangar Development, Improved Terminal Amenities, and Branding. And although Non -Aviation Property Development includes the Solar Farm, it is sufficiently different that the two were separated to show revenue potentials. It should be noted that these totals represent only the additional revenues attributable to the Business Plan initiatives, which are above and beyond the Baseline forecasts of revenues and expenses. NUMBER OF RECOMMENDATIONS AND ACTION STEPS have been made for each revenue enhancement strategy. These recommended actions are summarized in this section. Under the heading of Attraction of Corporate Aviation, there are three supporting sets of recommended actions. Attraction of Corporate Aviation — Hangar Development 1. Prefer City Construction Option: The City should construct as many conventional hangars as they are financially capable of doing to accommodate demand. This will require utility service to the East Side of the Airport in the near term. 2. Private Enterprise Included: Whatever demand is left over to be developed should be given to private enterprise. It should be recognized that their cost differential will price their hangars lower than that of the City, thereby filling them up first. IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-28 19 Lee's Summit Municipal Airport LEE'S SUMMIT Business Plan M I S S o u R I 2027 3. Possibly Limit Private Enterprise to T-Hangar Development. One option around this issue would be to restrict private enterprise to the development of T-hangars, leaving the corporate conventional hangar development to the City. Attraction of Corporate Aviation — Continued Improved Terminal Amenities and Services ♦ Gauge the Market. Airport Management should continuously gauge their clients as to preferences concerning amenities and services. This can be through informal discussions with pilots, formal surveys, or Internet research. ♦ Study the Signature Flight Model: Although Signature Flight Support is a multi -million dollar enterprise, there are some low-cost amenities and services that they offer which are not available at LXT. These may be added inexpensively, while at the same time having a larger effect on customer service satisfaction. ♦ Prioritize Larger Cost Amenities: Each new larger cost amenity or service should be considered in light of its ability to draw the target segment of demand — in this case, corporate aviation — to LXT. This Step is linked to Step 1, where knowledge of the local market is key. ♦ Work with Branding Consultants: In rolling out any new amenity or service, the maximum impact on the market should be sought. This would include branding and marketing campaigns around these actions. Attraction of Corporate Aviation — Airport Branding 1. Establish a New Airport Name: To strengthen the Airport's status within the corporate aviation community, it is essential to replace "Municipal" with "Regional" or "Executive". To enhance the immediate geographical awareness of pilots planning visits to the region, it is further recommended that the City strongly consider including "Kansas City" in Airport name. One suggested example is "Greater Kansas City Regional Airport". 2. Officially Register the New Airport Name: Due to the time involved (up to a year or more) in making an Airport name change official with the Federal Aviation Administration, it is recommended that this process be initiated as soon as a new Airport name is established to ensure the new name is included in all official records and documentation. 3. Secure New Airport Web Address: Concurrent with the FAA registration process, the City should also secure the domain name for the new Airport website. Budget permitting, it would be wise to secure multiple domain names to prevent malicious meddling by others. One suggested address is "www.FLYLXT.com". 4. Authorize the Design of a Unique Airport Logo: The City should contract an Airport branding and marketing firm/professional to design a unique Airport logo, with guidelines for specific colors and recommended uses, sizes, and positioning of the Airport logo to maintain consistency and for maximum brand awareness. 5. Construct a Standalone "Corporate" Themed Airport Website. The City should authorize the construction of a standalone "Corporate" themed Airport website featuring the new Airport logo and branding, and linked to the City website. 6. Develop Marketing Plan: The City should use their Airport branding and marketing firm to further refine the marketing plan to focus upon promoting the new Airport name, logo, IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-29 19 Lee's Summit Municipal Airport LEE'S SUMMIT Business Plan M I S S o u R I 2027 and implementing media outreach to attract new customers. Detailed steps for this recommendation are outlined in Section 7.4.1 above. 7. Produce a New Airport Video: It is recommended that a fresh video be produced that highlights the new Airport brand and mission, along with a brief history, current developments, and vision of the future. This may be hosted on the new Airport website and distributed via social media as a method for attracting visitors to the website. 8. Develop a Targeted Social Media Outreach: The City should authorize a fresh new targeted social media outreach to introduce the new Airport brand, generate fresh interest in the Airport, and present a professional presence on Facebook, Instagram, Twitter, and other viable platforms. Aviation Education/Flight School 1. Develop Airport Lab Space: As a part of the R-7 School District, the City has the ability to coordinate programs between Summit Technology Academy (STA) and LXT for an Airport Lab space proposal. This would place students at an airport location. The Business Plan assumes that some space on the East Side will be dedicated to the STA or similar program. 2. Coordinate with University Program: The Missouri Innovation Campus building is shared by STA with the University of Central Missouri. This connection between STA and UCM needs to be explored to determine the potential viability of an on -airport classroom and/or flight training program at LXT. 3. Seek Private Flight School. If talks were to go well with UCM, the next step would be to seek to attract a private flight school to LXT. This would be discussed as a key step in attracting a satellite flight training program from the University of Central Missouri. 4. Attract Other Aviation Programs: Although flight training is a priority, the development of other aviation programs at the Airport would be appropriate. STA has an aviation maintenance track, drone pilot track, avionics track, and an aviation management track of studies that would all fit nicely in an airport environment. Non -Aviation Property Development 1. ALP Update: Identify non -aviation property for development on the Airport Layout Plan. With a consultant, layout the property in accessible parcels. 2. Land Release: Initiate the land release process with FAA. The release does not have to be for property sale, but rather, to lease for a non -aviation use. 3. Solicit RFI: Solicit Request For Information/Interest (RFI) on developing a small solar PV system of 1-2 acres on non -aviation property. Cost information is important, along with system set up information needed to reduce electricity costs on the Airport. 4. Advertise Property. Use in-house staff or commercial real estate broker to advertise non - aviation Airport property. Seek to lease property for the long term, if possible. S. Sale Option: If property sale is the only way to move the parcels, examine the return on assets as compared to a long-term lease. The Management and Policy Recommendations have been given in Section 7.7 above. Briefly, these included guidance for: IN R.A. Wiedemann & Associates, Inc. in association with CMT 7-30 19 Lee's Summit Municipal Airport LEE'S SUMMIT Business Plan M I S S o u R I 2027 ► Airport Accounting Structure: For a variety of reasons, the City should keep the existing Enterprise Fund structure. ► Airport Management Structure: No changes recommended. ► Airport Staffing: Up to 9 additional FTE are anticipated over the planning period. Of these 2.5 FTE would be needed as a result of the implementation of this Business Plan. ► Lease Policy: A comprehensive lease policy is recommended for future development. ► Control of Land Surrounding the Airport: Restrictive easements for land developers are recommended. Other potential strategies to protect the Airport include: ♦ Zoning for land use compatibility, particularly off runway ends. ♦ Restriction of noise -sensitive land uses adjacent to the Airport. ♦ Building permit processes that could be used to control future non -compatible land uses and/or Airport hazards that may be proposed. ► Retention of Existing Business Clientele: Airport Management is already doing a good job and has taken steps to ensure client retention by spending time servicing the needs of these tenants. ► Internal Airport Branding Actions: These actions can be taken by the City, independent of a consultant branding firm: ♦ New Airport Name: The City needs to decide on a new name for the Airport that incorporates the desired upgraded brand. Suggestions for these have been provided in this Business Plan and include: Lee's Summit Regional or Executive Airport, Kansas City Regional or Executive Airport, Greater Kansas City Regional Airport, and Heart of America Air Center. ♦ Implement Upgrades in Conformance with New Brand: Prior to the rollout of a new brand, the City should ensure that there are no glaring contradictions either with facilities or services, relative to the new brand. The most successful branding upgrade occur when the actual facilities and service match the new hype. ♦ Airport Social Media: The City should ensure that the Airport's social media platform is upgraded in conformity to the new brand. There should a mechanism to regularly change the content, thereby attracting continuous check -ins and new views. IN R.A. Wiedemann &Associates, Inc. in association with CMT 7-37 Appendix A Lease Analysis Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT APPENDIX A: LEASE ANALYSIS 2027 BRIEF ANALYSIS OF LEASE AGREEMENTS BETWEEN Lee's Summit Municipal Airport and their corresponding airport tenants was conducted. Included within this analysis are a number of lease strategies, best practices, and general areas of advice to ensure compliance with FAA grant assurances and to provide LXT with a checklist of issues that need to be addressed within specific lease agreements. Overall, the leases were found to be agreeable in most areas, with the exception of a few minor issues identified in the checklist. Because disputes often arise where ambiguity persists in lease language, leases should be standardized to lower the deviation from lease to lease. It is important to note that this analysis was not performed by an attorney and should not be used in place of legal advice. Before modifications to any existing leases from Lee's Summit Municipal Airport are pursued, these recommendations should be reviewed with and by the Airport sponsor's legal counsel. This analysis is organized as follows: • Inventory of Sample Lease Agreements • Lease Structure Modifications • Analysis of Lease Elements • Strategies for Correcting Lease Issues HIS ANALYSIS IS BASED ON FOUR SAMPLE leases provided, each representing a different airport - use case. The leases examined cover scenarios involving ramp tie downs, hangar leasing, office space, and airport ground leases. While each sample lease focuses on a specific range of issues, there are standard clauses relevant to most aviation leases, and are relevant for FAA grant assurances. For this analysis, a checklist was utilized to verify the use of important sections in each lease. This checklist does not evaluate the specific conditions of each lease section, but only verifies that it has been used in the lease. Sample Lease: Land Lease Agreement Lease Type: Ground Lease Business Type: Hangar Development Lease Length: 29 Pages Premises: Airport Property w Wiedemann & Associates, Inc. in association with CMT A- 7 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 Sample Lease: Land Lease Agreement Lease Element Checklist Lease Term J Lease Rent V Escalation Clause ,/ Use of Premises J Taxes and Fees J Damage to Facilities ,/ Operation & Maintenance J Liens V Insurance Obligations J Construction of Improvements J Defaults V Environmental J Reversion Clause V Assignments and Subletting V Living Clauses d Lessor Rights, Reservations, and Obligations V Regulatory Compliance V Force Majeure X Lessee Rights, Reservations, and Obligations V Hold Harmless Provision V Holdover J Security Requirements ,/ Nondiscrimination V Term Extension Options J Checklist Score: 23/24 Sample Lease: Community Hangar Lease Agreement Lease Type: Aviation, Commercial Business Type: Community Hangar Rental Lease Length: 8 Pages Premises: Square Footage within Hangar Lease Element Checklist Lease Term V Lease Rent V Damage to Facilities Use of Premises V Taxes and Fees X Insurance Obligations Operation & Maintenance V Liens V Environmental d Construction of Improvements V Defaults V Living Clauses d Lessor Rights, Reservations, Assignments and Majeure X and Obligations SublettingForce Lessee Rights, Reservations, V Regulatory Compliance V Nondiscrimination X and Obligations Security Requirements X Hold Harmless Provision Checklist Score: 16/20 w Wiedemann & Associates, Inc. in association with CMT A-2 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 Sample Lease: Office Space Lease Agreement Lease Type: Non -Aviation, Commercial Business Type: Office Space Lease Length: 8 Pages Premises: Square Footage within Building Lease Element Checklist Lease Term J Lease Rent J Damage to Facilities J Use of Premises J Taxes and Fees X Insurance Obligations J Operation & Maintenance J Liens J Environmental J Construction of Improvements J Defaults J Living Clauses V Lessor Rights, Reservations, J Assignments and J Force Majeure X and Obligations Subletting Lessee Rights, Reservations, J Regulatory Compliance J Nondiscrimination X and Obligations Security Requirements X Hold Harmless J Provision Checklist Score: 16/20 Sample Lease: Ramp Tie -Down Lease Agreement Lease Type: Aviation, Commercial Business Type: Tie -Down Rental Lease Length: 7 Pages Premises: Square Footage on Ramp Lease Element Checklist Lease Term J Lease Rent J Damage to Facilities J Use of Premises J Taxes and Fees X Insurance Obligations J Operation & Maintenance J Liens J Environmental J Construction of Improvements J Defaults J Living Clauses J Lessor Rights, Reservations, J Assignments and J Force Majeure X and Obligations Subletting Lessee Rights, Reservations, J Regulatory Compliance J Nondiscrimination X and Obligations Security Requirements X Hold Harmless J Provision Checklist Score: 16/20 w Wiedemann & Associates, Inc. in association with CMT A-3 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 As shown, the leases at Lee's Summit Municipal Airport cover a variety of leasehold scenarios and adequately address most lease -related issues. In each lease, the issues identified in red were found to be either deficient or left unaddressed in the examined lease. These issues can be addressed in future lease negotiations. NUMBER OF LEASE ISSUES HAVE BEEN identified with the sample leases at Lee's Summit Municipal Airport that should be addressed in the future. It is important to note that during lease negotiations a tenant could make additions to these policies to protect their own interests. Such additions should be left up to the discretion of the Airport sponsor, keeping in mind that no lease can give a single tenant an advantage over its on -airport competition, and that exclusive rights are a violation of federal grant assurances. Some of these issues cannot be corrected until the current lease expires. Others may be subject to correction strategies and incentives offered by the Airport in the near term. The following areas of each sample lease should be added/corrected: • Taxes & Fees: As a public entity, the Airport is exempt from property taxes. Depending on the political and economic climate, the taxes required for commercial entities operating on publicly owned land is subject to change. Therefore, it is important that the lease stipulate that all taxes and fees subject to Airport property be passed through to the tenant. • Security Requirements: At a minimum, the lease should reference controlling all entry points of the Airport that provides access to the operations area on the leased premises in order to prevent unauthorized access of persons and vehicles. All security measures must comply with any regulations stipulated by the TSA and Homeland Security. • Force Majeure: This clause frees both the Airport and tenant from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an act of God. • Nondiscrimination: Leases should include language that prohibits discrimination on the grounds of race, color, or national origin, etc. HE LEASE STRUCTURE CHANGES OUTLINED IN THIS document can be easily implemented into new lease agreements. For the current lease agreements that do not adhere to the practices outlined in this document, there are limited options to change. To adjust the terms in current leases, the Airport can utilize one of the following methods: • Renegotiation of Lease Terms: This could be initiated by either the tenant or the Airport, seeking to add an amendment to the current lease. If the Airport is initiating the w Wiedemann & Associates, Inc. in association with CMT A-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 renegotiation, an incentive will need to be offered to the tenant in exchange for adhering to the new lease policy. That incentive may be a lease extension that is not already included in the current lease. • Upon Assignment or Subletting of Current Lease: A tenant cannot assign or sublet the lease terms without the express approval of the Airport. A scenario involving a negotiation for an assignment of a lease agreement, the Airport would have the opportunity to update the lease terms to the new Airport lease policy. • Default of Current Lease: If a tenant does not adhere to the obligations of their specific leasehold agreement, either through non-payment of rent or violations of the Airport's Rules and Regulations, the Airport can institute the standard leasing policy for future agreements. • Expiration of Current Lease Term: When the term of any lease expires, and the tenant is unable to utilize an extension option, that particular lease can be discarded if it does not conform to the new leasing policy of the Airport. Several of the sample leases examined only extend out to the end of each month, so altering the lease in this manner would be the most viable option for those leases. w Wiedemann & Associates, Inc. in association with CMT A-5 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT APPENDIX A: LEASE ANALYSIS 2027 BRIEF ANALYSIS OF LEASE AGREEMENTS BETWEEN Lee's Summit Municipal Airport and their corresponding airport tenants was conducted. Included within this analysis are a number of lease strategies, best practices, and general areas of advice to ensure compliance with FAA grant assurances and to provide LXT with a checklist of issues that need to be addressed within specific lease agreements. Overall, the leases were found to be agreeable in most areas, with the exception of a few minor issues identified in the checklist. Because disputes often arise where ambiguity persists in lease language, leases should be standardized to lower the deviation from lease to lease. It is important to note that this analysis was not performed by an attorney and should not be used in place of legal advice. Before modifications to any existing leases from Lee's Summit Municipal Airport are pursued, these recommendations should be reviewed with and by the Airport sponsor's legal counsel. This analysis is organized as follows: • Inventory of Sample Lease Agreements • Lease Structure Modifications • Analysis of Lease Elements • Strategies for Correcting Lease Issues HIS ANALYSIS IS BASED ON FOUR SAMPLE leases provided, each representing a different airport - use case. The leases examined cover scenarios involving ramp tie downs, hangar leasing, office space, and airport ground leases. While each sample lease focuses on a specific range of issues, there are standard clauses relevant to most aviation leases, and are relevant for FAA grant assurances. For this analysis, a checklist was utilized to verify the use of important sections in each lease. This checklist does not evaluate the specific conditions of each lease section, but only verifies that it has been used in the lease. Sample Lease: Land Lease Agreement Lease Type: Ground Lease Business Type: Hangar Development Lease Length: 29 Pages Premises: Airport Property w Wiedemann & Associates, Inc. in association with CMT A- 7 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 Sample Lease: Land Lease Agreement Lease Element Checklist Lease Term J Lease Rent V Escalation Clause ,/ Use of Premises J Taxes and Fees J Damage to Facilities ,/ Operation & Maintenance J Liens V Insurance Obligations J Construction of Improvements J Defaults V Environmental J Reversion Clause V Assignments and Subletting V Living Clauses d Lessor Rights, Reservations, and Obligations V Regulatory Compliance V Force Majeure X Lessee Rights, Reservations, and Obligations V Hold Harmless Provision V Holdover J Security Requirements ,/ Nondiscrimination V Term Extension Options J Checklist Score: 23/24 Sample Lease: Community Hangar Lease Agreement Lease Type: Aviation, Commercial Business Type: Community Hangar Rental Lease Length: 8 Pages Premises: Square Footage within Hangar Lease Element Checklist Lease Term V Lease Rent V Damage to Facilities Use of Premises V Taxes and Fees X Insurance Obligations Operation & Maintenance V Liens V Environmental d Construction of Improvements V Defaults V Living Clauses d Lessor Rights, Reservations, Assignments and Majeure X and Obligations SublettingForce Lessee Rights, Reservations, V Regulatory Compliance V Nondiscrimination X and Obligations Security Requirements X Hold Harmless Provision Checklist Score: 16/20 w Wiedemann & Associates, Inc. in association with CMT A-2 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 Sample Lease: Office Space Lease Agreement Lease Type: Non -Aviation, Commercial Business Type: Office Space Lease Length: 8 Pages Premises: Square Footage within Building Lease Element Checklist Lease Term J Lease Rent J Damage to Facilities J Use of Premises J Taxes and Fees X Insurance Obligations J Operation & Maintenance J Liens J Environmental J Construction of Improvements J Defaults J Living Clauses V Lessor Rights, Reservations, J Assignments and J Force Majeure X and Obligations Subletting Lessee Rights, Reservations, J Regulatory Compliance J Nondiscrimination X and Obligations Security Requirements X Hold Harmless J Provision Checklist Score: 16/20 Sample Lease: Ramp Tie -Down Lease Agreement Lease Type: Aviation, Commercial Business Type: Tie -Down Rental Lease Length: 7 Pages Premises: Square Footage on Ramp Lease Element Checklist Lease Term J Lease Rent J Damage to Facilities J Use of Premises J Taxes and Fees X Insurance Obligations J Operation & Maintenance J Liens J Environmental J Construction of Improvements J Defaults J Living Clauses J Lessor Rights, Reservations, J Assignments and J Force Majeure X and Obligations Subletting Lessee Rights, Reservations, J Regulatory Compliance J Nondiscrimination X and Obligations Security Requirements X Hold Harmless J Provision Checklist Score: 16/20 w Wiedemann & Associates, Inc. in association with CMT A-3 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 As shown, the leases at Lee's Summit Municipal Airport cover a variety of leasehold scenarios and adequately address most lease -related issues. In each lease, the issues identified in red were found to be either deficient or left unaddressed in the examined lease. These issues can be addressed in future lease negotiations. NUMBER OF LEASE ISSUES HAVE BEEN identified with the sample leases at Lee's Summit Municipal Airport that should be addressed in the future. It is important to note that during lease negotiations a tenant could make additions to these policies to protect their own interests. Such additions should be left up to the discretion of the Airport sponsor, keeping in mind that no lease can give a single tenant an advantage over its on -airport competition, and that exclusive rights are a violation of federal grant assurances. Some of these issues cannot be corrected until the current lease expires. Others may be subject to correction strategies and incentives offered by the Airport in the near term. The following areas of each sample lease should be added/corrected: • Taxes & Fees: As a public entity, the Airport is exempt from property taxes. Depending on the political and economic climate, the taxes required for commercial entities operating on publicly owned land is subject to change. Therefore, it is important that the lease stipulate that all taxes and fees subject to Airport property be passed through to the tenant. • Security Requirements: At a minimum, the lease should reference controlling all entry points of the Airport that provides access to the operations area on the leased premises in order to prevent unauthorized access of persons and vehicles. All security measures must comply with any regulations stipulated by the TSA and Homeland Security. • Force Majeure: This clause frees both the Airport and tenant from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an act of God. • Nondiscrimination: Leases should include language that prohibits discrimination on the grounds of race, color, or national origin, etc. HE LEASE STRUCTURE CHANGES OUTLINED IN THIS document can be easily implemented into new lease agreements. For the current lease agreements that do not adhere to the practices outlined in this document, there are limited options to change. To adjust the terms in current leases, the Airport can utilize one of the following methods: • Renegotiation of Lease Terms: This could be initiated by either the tenant or the Airport, seeking to add an amendment to the current lease. If the Airport is initiating the w Wiedemann & Associates, Inc. in association with CMT A-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 renegotiation, an incentive will need to be offered to the tenant in exchange for adhering to the new lease policy. That incentive may be a lease extension that is not already included in the current lease. • Upon Assignment or Subletting of Current Lease: A tenant cannot assign or sublet the lease terms without the express approval of the Airport. A scenario involving a negotiation for an assignment of a lease agreement, the Airport would have the opportunity to update the lease terms to the new Airport lease policy. • Default of Current Lease: If a tenant does not adhere to the obligations of their specific leasehold agreement, either through non-payment of rent or violations of the Airport's Rules and Regulations, the Airport can institute the standard leasing policy for future agreements. • Expiration of Current Lease Term: When the term of any lease expires, and the tenant is unable to utilize an extension option, that particular lease can be discarded if it does not conform to the new leasing policy of the Airport. Several of the sample leases examined only extend out to the end of each month, so altering the lease in this manner would be the most viable option for those leases. w Wiedemann & Associates, Inc. in association with CMT A-5 Appendix B Rates & Charges Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT APPENDIX B: RATES & CHARGES 2027 IRPORT LEASE AGREEMENTS INCLUDE RENTALS AND FEES for the use of airport property, equipment, facilities, services, and buildings. Airport sponsors must establish rates and charges that help offset the cost of operating the airport facility. There are no set guidelines or standards on what individual airports should charge tenants. A municipal airport in and of itself is not necessarily a commercial entity, but rather, a publicly funded facility. Therefore, rates should be established to reflect the cost of providing the facility, maintaining and administrating the facility, recovering capital expenditures, and any other costs associated with the airport operation. A common method of establishing airport rates and charges is by researching what other neighboring airports are charging for like services and facilities. Typically, the surveyed airports should be as comparable as possible. For this reason, services and prices for corporate aviation were sought from Wheeler Downtown (MKC), from FBO - Signature Flight, New Century AirCenter (IXD) from FBO - Advanced Jet Center, and Midwest National Air Center (GPH) from FBO - Quick Turn Flight Support. These are the only general aviation airports in the service area with based jets. The difficulty in using this approach is that the outcome may not accurately reflect the actual costs of providing the facilities or services. Another approach, referred to as the compensatory approach, is based on cost recovery for actual costs of facilities and services. There are many versions of the compensatory approach developed primarily for air carrier airport applications. For the purposes of this analysis, the compensatory approach essentially means cost recovery for actual airport facilities and services. In most cases airport sponsors will use a mix of both market -based pricing and cost -recovery pricing in determining rates and charges. The way that fees are determined also depends largely on the structure of airport leases. Short-term agreements allow management the ability to adjust rates more frequently as required. Long-term contracts and airport lease agreements may not allow for these types of adjustments, but they do provide a measure of stability moving into the future. It is common to establish rate escalators in longer -term lease arrangements. The FAA recommends that all leases with a term exceeding five years provide for periodic review of the rates and charges for the purpose of adjustments to reflect the then -current values. This process also establishes parity of rates between new operators coming on to the airport and long-term tenants (FAA Order 5190.6A, Airport Compliance Requirements). 1 Source for this Section: ACRP Report 16, Guidebook for Managing Small Airports (Airport Cooperative Research Program, Transportation Research Board, and Federal Aviation Administration, 2009, p. 18). lof R.A. Wiedemann & Associates, Inc. in association with CMT B-1 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 Commercial users, hangar renters, FBOs, or agricultural land leases all may require varying approaches to establishing rates depending on the activity. A general aviation airport may also establish rates for terminal charges, airfield charges, and buildings and grounds charges. Terminal charges might involve such things as use of conference facilities, concessions, gift shops, car rentals, or office space. Airfield charges include fuel flowage fees or landing and ramp fees. Fuel flowage fees, often established at general aviation airports, are collected on gallons of aviation fuel dispensed. This fee is often collected from private commercial operators as part of the lease agreement. Other fees or grounds charges may be established for use of airport buildings and grounds for a variety of uses, such as the construction of private hangars or special events. HE EXISTING RATIONALE AND RATE SETTING METHODS for LXT are described in the following sections. This information was provided by LXT Staff as of November 2020. Each pricing component is examined separately. 13.2.1 EXISTING AIRCRAFT STORAGE RATE METHODOLOGY I T-HANGARS To ensure that rates at LXT reflect market values, Airport staff performed a market study of hangar rental rates based on rental rates of other similar hangar rates in the metropolitan area and the current debt service for each of the hangars. A rate per square foot for each of the hangars was established. Since that time, a CPI-U index escalator (to account for inflation) has been applied to the current rental rates each year. Hangar rental rates of other airports in the metropolitan area are compared each year as part of the budget process. Airports used for comparison are Wheeler Downtown (MKC), Johnson County (OJC), Midwest National Air Center (GPH), and New Century AirCenter (IXD), as these airports are municipally operated and have comparable type hangars. Of the competition, only MKC applies an annual CPI increase. MKC implements their increases on January 1st while LXT implements their increases on at the start of the fiscal year on July 1st. The Johnson County Airport system has a large industrial complex at IXD that provides revenue capabilities beyond the capabilities of just the airport landside operations and as such, have not needed to adjust their rates on a regular basis. HANGAR 1 As the newest addition to the conventional hangar inventory for the City, Hangar 1 features its own rate structure. Currently hangar rental rates in Hangar 1 are $550.00 per month for single engine aircraft while larger aircraft pay $0.525 per square foot based on the footprint of the aircraft. Each year, as part of the development of the City budget, a new rates and fee structure is lof R.A. Wiedemann & Associates, Inc. in association with CMT B-2 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 examined for the Airport. With Hangar 1 being the only large box hangar the Airport has for lease space, and the demand being higher than the availability, proposed changes included not only a square footage rate, but also a required monthly fuel purchase. If no fuel is purchased, then a rate of $0.20 per square foot would apply. This rate, as well as the base rent are subject to CPI adjustments each year. Table B-1, presented later, shows the rates for a five-year period. In addition to a 2.2 percent increase on hangar rental rates, most fees for services at the Airport will be increasing for FY20. These increases will help cover new and upcoming operational cost and maintain the current level of services and professional staff as well as plans for additional capital purchases in the future. B.2.2 FUEL FEES I FUEL PRICING METHODOLOGY Fuel pricing is based on City Ordinance No. 8718 that authorizes Airport Management to approving a change in the markup on both Jet -A & 100LL Avgas and discount structure that would enable the Airport to remain competitive with surrounding airports with runways that are 5,501 ft. or longer. Key Issues: • The Airport operates as an enterprise fund and is expected to cover operational expenses through hangar rental, fuel sales, and ground lease. • The mark-up on Jet -A and 10OLL are reviewed annually to ensure that the Airport mark- up is competitive in the marketplace and enough to cover operating cost. • The current mark-up rate places the Airport's retail price on Jet -A an average of $1.25/gallon lower than Airports in the area operating at least a 5,501' runway. • Due to the recent implementation of the Compensation Plan, the Airport's overhead cost will increase by approximately $72,000 annually during FY20. Background: The Airport operates as an enterprise fund and is expected to cover operational expenses through hangar rental, fuel sales, and ground leases. Annually, the Airport reviews the fuel mark-up rates and fees for services to ensure that the Airport remains both competitive in the marketplace and generates enough revenue to cover operational expenses. Due to the recent implementation of the Compensation Plan, the Airport's overhead cost increased by approximately $72,000 annually during FY20. The current mark-up rate places the Airport's retail price on Jet -A an average of $1.25/gallon lower than Airports in the area operating at least a 5,501' runway. The last change to the Jet -A mark-up was implemented in 2014 as part of the Revenue Enhancement Program which increased the lof R.A. Wiedemann & Associates, Inc. in association with CMT B-3 Lee's Summit Municipal Airport 19 Business Plan LEES S<0I i R I January 2027 mark-up on Jet -A from $1.50/gal to $2.00/gal. Additionally, it increased the mark up on 10OLL, and implemented the minimum fuel purchase program. FUEL PRICING STRATEGY Within the LXT service area, the Airport has the ability to increase the fuel prices and fees for services to within +5 percent to -10 percent of the retail price of other Airports with at least a 5,501' runway and offering similar services. Because the Airport would be providing comparable prices to other Airports, an increase to the price on Jet -A and 10OLL is not likely to affect sales negatively. Maintaining an increase of $0.65-$0.95/gal on top of the current markup of transient, Jet -A fuel, would place the Airport 5-10 percent below other nearby Airports offering at least a 5,501' runway. A $0.65/gal increase would generate approximately $38,000 additional revenue from Jet -A alone. Additionally, an increase of $0.65/gal on 10OLL for transient customers would generate an additional $15,000 annually. To keep prices within a +5 percent to -10 percent window of other Airports, frequent adjustments to the mark-up rates will need to be made due to fluctuating wholesale fuel prices and changes the local aviation fuel market. As an enterprise fund, it is important that the Airport be run like a business and be able to reflect the current market conditions. This can be difficult, as the market constantly changing. With parameters set by the city, Airport Staff should have the ability to react quickly and make modifications to the fuel prices on the Airport. Self -Service 10OLL Avgas Mark-up The self-service 10OLL fuel pricing is based on three components: the base price, markup considerations, and then potential discounts. All discounts are considered after markups are considered to ensure the Airport doesn't lose money on any fuel sale. The retail price for self- service 10OLL transient and based customers has traditionally consisted of a $0.18/gal and $0.36/gal discount off the retail price, respectively. Because the full -service price will be increasing more than $0.65/gal, the recommendation of this analysis is to maintain self-service fuel near its current prices. This will enable the airport to provide a less expensive alternative to full -service and continue to attract and retain customers. Currently, this this pricing strategy is used at other Airports in the Greater Kansas City Area. Therefore, the Airports self-service price needs to be based on a cost plus markup. The Airport has proposed a slight increase in self-service mark up as follows: Current Markup Proposed • Self -Service Based $0.64 $0.79 • Self -Service Transient $0.84 $0.97 Full -Service 10OLL Avgas The retail price for full -service Avgas is higher than that of self-service fuel because of the Staff labor involved. However, the proposed markup is based on the local market rates minus 25 cents per gallon. lof R.A. Wiedemann & Associates, Inc. in association with CMT B-4 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT Current Markup • Full -Service Based $0.82 • Full -Service Transient $1.05 100 LL Discounts Proposed Local Rates minus $0.25/gal Local Rates minus $0.25/gal 2027 In January 2018, City Council approved the updated schedule of discounts offered to customers. Below are the proposed discounts the Airport should offer. Monthly volume discounts for Avgas customers are as follows: Gallons/Mo. Discount • 250-349 $0.25/gal • 350-449 $0.55/gal • Greater than 450 $0.60/gal Jet -A The markup for Jet -A is significantly higher than for Avgas. The reasoning is that aircraft owners who require jet fuel will pay higher prices because they are such a small part of operating costs. The existing and proposed markups are shown as follows: Current Markup • Full -Service Based $1.86 • Full -Service Transient $2.07 • Contract Fuel - Based $1.50 Jet -A Discounts Proposed Local Rates minus $0.25/gal Local Rates minus $0.25/gal $1.65 Like Avgas, there are volume discounts for large purchases and for high monthly volumes for transient jet fuel purchasers. Contract fuel is fuel sold via previous agreements. In general, most airlines have these agreements, as do large general aviation operators. Contract fuel programs offer lower than retail fuel pricing to the operator, as well as value back to the participating member FBO or ground handler, through marketing and services communicated to an expanded member customer base that participates in such programs. These pricing structures are vital to maintain competitiveness within the service area. At LXT these discounted rates include the following: Transient Sinale Transactions Gallons Discount Contract Fuel Discount • 1-299 $0.00/gal $0.05/gal • 300-499 $0.10/gal $0.15/gal • Greater than 500 $0.50/gal $0.55/gal lof R.A. Wiedemann & Associates, Inc. in association with CMT B-5 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 Transient Monthlv Volume Gallons Discount Contract Fuel Discount • 2001-2999 $0.55/gal $0.60/gal • 3000-4999 $0.60/gal $0.65/gal • 4500-8999 $0.70/gal $0.75/gal • Greater than 9000 $0.75/gal $0.80/gal 13.2.3 SERVICE FEES I Service fee rates are reviewed annually as part of the Airport's operation budget. This requires that service fees be in accordance with the State Hancock Law. The law states that a local government entity may not levy any "tax, license, or fee" that was not already in existence at the time the Hancock Amendment was adopted, nor may it increase the levy of a tax beyond the level that was in effect at the time that the Hancock Amendment was adopted unless approved by the voters. In 1991, the Courts adopted the "Keller Test" to determine whether a charge is subject to the public vote requirement. In short, the Airport can adjust fuel prices and service fees without having to have a public vote. Service fees usually involve the use of equipment such as aircraft tugs, engine preheaters, lavatory carts, etc. but also includes items such as after hour fees. Fees are structured based on the annual operational cost of the equipment and employee cost. Comparisons with other aviation service providers are also made to assure that LXT is within the market ranges. Expectations must be made for labor rates, and type of equipment being used. In the last five years, the City of Lee's Summit implemented a salary rate adjustment Citywide. As a result, hourly salaries for many Airport staff that provide services to the aviation public increased $6.00 an hour. In turn, it was necessary to increase most service fees to cover the increased cost in labor for each of the services provided. 13.2.4 GROUND LEASE RATES I There is a method for setting ground lease rates at LXT. The current rates for aviation and non - aviation ground leases are $0.38 and $0.51 per square foot per year, respectively. The aviation base rate was derived by taking 10 percent of the purchase price of the ground, in addition to the cost of access, drainage, and fire lines supporting the area, divided by the number of square feet of developable area. Thus, this lease rate is cost -based. Each year, a CPI cost escalator of about $0.01 per square foot is added to the leases. Each of the ground leases include a CPI increase, which keeps the older lease rates comparable to newer leases. lof R.A. Wiedemann & Associates, Inc. in association with CMT B-6 Lee's Summit Municipal Airport 19 LEE'S SUMMIT Business Plan M 13 5 0 U R I January 2027 The non -aviation ground lease rate of $0.51 per square foot is comparable with other non -aviation ground leases in the local area. It is an economic rent based on demand. When considering these lease rates for aviation and non -aviation property, it should be noted that they are usually a fraction of the value of the lease improvements (hangars and non -aviation buildings). ABLE B-1 PRESENTS A COMPARISON OF RATES and charges at the four general aviation airports in the service area. These costs consider aircraft storage space, fuel prices, special services for corporate aviation, and ground lease space (for hangar development). Table B-1 — Rates and Charges Comparisons Rate Item Lee's Summit (LXT) New Century (IXD) Midwest National Air Center (GPH) Wheeler Downtown (MKC) Aircraft Storage Monthly Tie -Down $62 $75 $55 N/A Monthly T-Hangars $345-$650 $310-$401 $290-$345 $368-$474 Conventional Hangar Space $6.30-$8.70/sf/yr. $8.16/sf/yr. N/A $1,660-$1,778/mo. Fuel Prices/Gallon* 100 LL Self Service $3.63 $4.50 $3.29 $3.34 100 LL Full Service $4.48 $4.85 $3.79 $5.90 Jet A Full Service $4.78 $3.30 $2.99 $5.39 Ground Services City of Lee's Summit (Advanced Jet Center) (Quick Turn Flight Support) (Signature Flight Support) Lavatory Service $65 $60 N/A $65 Ground Power Unit $75 $30/hr. $45 $55 Oxygen N/A $40 N/A $140 Air Conditioner Service- 2 hour Maximum $85 N/A N/A N/A Water Services N/A N/A N/A $55 Preheats $45-$55 N/A N/A N/A Overnight Plug-in $15 N/A N/A N/A De-icing $175 initial fee $5/gal markup N/A N/A $24/gal Ground Lease ($/sf/yr.) $0.38/sf, $0.51 non -aviation $0.28/sf, $0.18 non -aviation $0.23/sf $0.2419/sf * As of December 8, 2020. The following sections examine each rate item. lof R.A. Wiedemann & Associates, Inc. in association with CMT B-7 Lee's Summit Municipal Airport 19 Business Plan LEES S oMMIT 2027 13.3.1 AIRCRAFT STORAGE I Aircraft storage covers three rate setting areas: monthly tie -downs, T-Hangars, and Conventional hangarspace. Monthly Tie -Down Rates: The LXT rate is $62/month. This compares with $75 at IXD and $55 at GPH. There are no short-term charges for itinerant tie -down space at Wheeler, and no monthly rate for based aircraft was published. In comparison, LXT is slightly below the average of $65/month regarding monthly tie -down rates. No changes are suggested. Monthly T-Hangar Rates: LXT's range of T-Hangar rates are from $345-$650 per month. This compares with a range of $270-$474 at the other three airports. It should be noted that the size of the hangars differs with these prices. LXT is in the mid -to -upper price range. However, the real measure of price point involves hangar occupancy. In this regard, LXT has filled their T-Hangars at these prices. Therefore, no changes are suggested. Conventional Hangar Rates: LXT's range of Conventional hangar rates range from $6.30- $8.70/sf for the first year. Escalation charges grow the range to $7.08-$9.78 in five years. The LXT charges include a minimum charge for fuel. That is, different types of aircraft must purchase minimum levels of fuel each month to enjoy the lower -range hangar rate. Larger aircraft have greater minimums for minimum fuel purchases. If aircraft tenants do not purchase fuel, a minimum fee is added to their base rate, ranging from $205-$582 per month. Table B-2 shows the per square foot breakdown of costs. Table B-2 — Conventional Hangar Prices per Square Foot, with Escalation Year Start Year 1 Year 2 Year 3 Year 4 Year 5 Aircraft Space $0.525 $0.538 $0.551 $0.564 $0.577 $0.590 Minimum Fuel $0.200 $0.205 $0.210 $0.215 $0.220 $0.225 Monthly Total rate/s.f.. $0.725 $0.743 $0.761 $0.779 $0.797 $0.815 Annual $8.700 $8.916 $9.132 $9.348 $9.564 $9.780 Comparison of costs indicate that New Century charges $8.16 per square foot with no minimum fuel charge. Wheeler Downtown Airport did not specify the size of their hangar space, and so the total charges could not be directly compared to LXT. However, at LXT a Citation -Encore business jet costs $1,971 per month if no fuel is purchased and $1,388.65 if fuel purchases exceed the minimums. These ranges are in proximity to the $1,660-$1,778 per month at Wheeler Downtown. Again, the measure of whether or not the rates are competitive involve the vacancy rates at LXT. Given that there are no vacancies for Conventional hangar space, the pricing is not too high for the market. Instead, there may be room for price increases if waiting lists of aircraft owners increase in number. For Hangar 1, this would be economic rent, based upon a large demand and competitive pricing, rather than cost -based rent. lof R.A. Wiedemann & Associates, Inc. in association with CMT B-8 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 13.3.2 FUEL PRICES I It should be noted that the published prices in Table B-1 do not include the volume discounts given by LXT to transient and repeat customers. At face value, the self -serve 100 LL Avgas at LXT is more expensive than Wheeler Downtown or Midwest National Air Center. However, New Century's price is $0.87 per gallon higher than LXT. It should also be noted that the City of Kansas City (sponsor of Wheeler Downtown) provides the self -serve fuel and competes with their FBOs (Signature Flight and Atlantic Aviation) which only have full service fueling. For full service 100 LL Avgas, LXT is less expensive than IXD and MKC, but more expensive than GPH. For Jet -A fuel, LXT is less expensive than MKC by $0.61 per gallon. However, it is clear that both IXD and GPH are using the low/below market rate jet fuel prices to attract activity. Not even with the highest discount at LXT could the prices at IXD or GPH be matched for jet fuel. Some airports use this pricing strategy to penetrate market share. In some cases, Airports choose to outsource full sales to an FBO and rely on a fuel flowage fee for revenues. This analysis does not recommend the privatization of fuel sales at LXT due to the dramatic decrease in revenues to the City which will not be able to be recaptured by a fuel flowage fee alone. A scenario where privatized fuel sales makes sense would involve a premium FBO such as Million Air or Signature Flight investing millions of dollars in new infrastructure and attracting significant amounts of new corporate activity. 13.3.3 GROUND SERVICES I Not every airport offers the same ground services. For those where comparisons are available, the following observations can be made. • Lavatory Service: There is only a $5 difference in fees between those at LXT, IXD, and MKC. The fact that LXT and MKC have the same pricing indicates a neutral competitive advantage. • Ground Power Unit. LXT's charge of $75 is more than any of the other airports, with MKC registering $55 as the next lowest rate. However, IXD charges $30 per hour and thus, a three-hour use could result in higher fees ($90). • De-icing: Only LXT and MKC offer this service. MKC uses a flat rate of $24 per gallon. LXT has an initial fee of $175, with a $5/gallon markup on the de-icing fluid. It is difficult to compare these rates, except to say any spray at MKC that used less than 8 gallons would be less expensive than LXT. lof R.A. Wiedemann & Associates, Inc. in association with CMT B-9 Lee's Summit Municipal Airport 19 Business Plan LI'.E'S S 0 Li R I T January 2027 13.3.4 GROUND LEASE RATE I Ground lease rates at LXT are higher than those for any of the other comparable airports. With $0.38 per square foot per year for aviation and $0.51 per square foot for non -aviation ground leases, there appears to be 36 percent increase over IXD, a 57 percent increase over MKC, and a 65 percent increase over GPH pricing. In addition, only one other airport, IXD, has two separate rates for aviation and non -aviation ground leases — both of which are significantly less than LXT. Other factors that influence these rates include the amount of property leased and whether reversion clauses are included in lease agreements. For example, some leases only include the developable building space, while others include the entire ground footprint. A 10,000 square foot building may sit on a 30,000 square foot lot, thus creating similar rents for different measured areas. For those leases with reversion clauses, every year conveys some percentage of equity to the airport operator. A 25-year lease effectively transfers 4 percent equity to the airport owner each year. FTER EXAMINING THE CURRENT RATES AND CHARGES at LXT, the rationale behind the pricing strategy, and the comparative pricing with other jet -capable airports in the service area, a set of recommended rates and charges was developed. Table B-3 presents the either the recommended rate or the method to be used in developing that rate. As shown, Table B-3 — Recommended Rates and Charges for LXT Rate Item Amount or Method of Rate Setting Aircraft Storage Monthly Tie -Down $62 Monthly T-Hangars $345-$650 with CPI Conventional Hangar Space $6.30-$8.70/sf/yr. with CPI Fuel Prices/Gallon* 100 LL Self Service Based - $0.79 markup/gallon, Transient - $0.97 markup/gallon 100 LL Full Service Local Rates-$0.25/gal 100 LL Volume Discounts $0.25-$0.55/gal as Proposed Jet A Full Service Local Rates-$0.25/gal Jet A Contract Fuel ITW $1.65/gal for Based Turbine Aircraft Jet A Volume Discounts $0.05-$0.80/gal as Proposed Ground Services Lavatory Service $65 Ground Power Unit $75 Air Conditioner Service- 2 hour Maximum $85 l of R.A. Wiedemann & Associates, Inc. in association with CMT B- 70 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 Table B-3 — Recommended Rates and Charges for LXT Rate Item Amount or Method of Rate Setting Preheats $45-$55 Overnight Plug-in $i s De-icing $175 initial fee $5/gal markup Ground Lease ($/sf/yr.) $0.38/sf, $0.51 non -aviation with CPI and Reversion Clause in Lease 13.4.1 AIRCRAFT STORAGE I Monthly tie -down rates are between IXD and GPH pricing and should remain the same. Similarly, the hangar rates for both T-Hangars and Conventional hangars are competitive at their current pricing level and should not be lowered unless significant vacancies occur. It is believed that escalating the current rates for T-Hangars by CPI will not endanger occupancy rates. Also, it is believed that adding a minimum fuel charge is a good idea because this strategy is successful in areas with a shortage of hangar space where renters are willing to pay that as a premium. Once the supply of hangar space reaches equilibrium, the monthly minimum can work as a competitive disadvantage. For at least the immediate and intermediate planning phases, the monthly fuel charge minimum should be effective. 13.4.2 FUEL PRICING I We agree completely that the fuel prices can be increased to be slightly below the competitive market without impacting sales volume. Typically, Avgas purchasers are the most price sensitive and will fly to other airports for fuel if there is a slightly lower price. However, jet fuel buyers spend disproportionately more on their aircraft than propeller aircraft operators. If the fuel price is competitive, they will not go elsewhere. While IXD and GPH are using low prices to attract transient business jet fuel sales activity, it certainly has not impacted the high jet fuel prices at MKC. It has also not significantly impacted jet basing practices (IXD and GPH have a combined 4 based jets — the same number as LXT). Therefore, the proposed method of pricing both Jet -A and Avgas at $0.25 below the local market rates is recommended. 13.4.3 GROUND SERVICES I The price points for ground services were all reasonable. One item, Ground Power Unit, was $20 to $30 more than competing airports. However, unless there is a lack of demand for that service, no changes were recommended in the current pricing. lof R.A. Wiedemann & Associates, Inc. in association with CMT B-11 Lee's Summit Municipal Airport 19 Business Plan LEES S 0 Li R I T January 2027 B.4.4 GROUND LEASE RATES I The current ground lease rates are based on actual costs for aviation -related development, and market value for non -aviation related uses. The current rate of $0.38 per square foot per year is recommended as a baseline, subject to CPI, for aviation ground leases. The current rate of $0.S1 per square foot per year is also recommended, subject to CPI, for non -aviation ground leases. Reversion clauses are recommended for all aviation -related leases. Typical leasehold agreements would include 20-year lease terms with two additional five-year renewal options. In addition, language that requires maintenance of the facilities is important to include in the leases. Once the City gains ownership of the lease improvements, market rates for the facilities can be charged, rather than ground lease rates. l of R.A. Wiedemann & Associates, Inc. in association with CMT B- 72