The following information is from the Supervisors packet:
RECOMMENDATION AND JUSTIFICATION:
Approve a Five-Year Agreement with Airborrn Aviation Services to Operate at the Mariposa/Yosemite Airport as the Fixed Based Operator (FBO), and Authorize the Board of Supervisors Chair to Sign the Agreement.
The Mariposa/Yosemite Airport was operated by County staff prior to November 2009, when the County entered into an agreement with KMPI to serve as the FBO. In 2013, KMPI opted out of the Agreement, and since that time the airport terminal has been closed with Public Works providing inspections, fuel monitoring, lease administration, etc.
In 2013, a Request for Proposals from firms or individuals interested in providing FBO services was advertised, but no responses were received. In 2014, the County entered into an agreement with Aeroplex Group Partners, LLC to produce an Operational Review of the Mariposa/Yosemite Airport and a Conceptual Airport Business Plan, which contained longer term enhancement activities that could make the airport selfsustaining.
In 2014 and early 2015, Public Works was contacted by individuals interested in providing FBO services to the Airport, and initial dialogue was begun with each entity to generate more fully developed proposals. On April 29, 2015, the Airport Advisory Committee heard proposals from two parties and made a recommendation that the County begin discussions in earnest with Airborrn Aviation Services (AAS) to enter into an FBO agreement. Since that time, the Director of Public Works has met multiple times with Mr. Tony Borreson of AAS to craft an Agreement that fairly and reasonably balances the stewardship of County resources with the opportunity to have an active and vibrant airport operation.
Under the proposed agreement, there will be no required payments or supplements flowing between AAS and the County. Public Works will continue to administer and collect revenues from the long term hangar leases, will make the annual financing payments, will continue to maintain the runway and taxiways, and will execute the Capital Improvement Plan.
AAS will occupy the terminal, manage overnight and short term tie down rentals, and run fuel sales, including setting fuel pricing.
Within six months of the start of the Agreement, the terminal will be open from 10:00 AM to 4:00 PM Monday through Friday, which meets the requirement to be an "attended" Airport on air charts. There is nothing to preclude additional hours and days of operation should AAS determine them to be financially viable.
Within twelve months, AAS will also make rental cars available at the airport.
The Airport Advisory Committee has been briefed on the Proposed Agreement and supportive comments have been received.
Given that this arrangement differs from the prior agreement, it is expected that the terms of the Agreement may need to be revisited after a period of time based on actual operating costs and revenues. Hangar leases, for example, were left "as is" in this Agreement to simplify the initial stages of operation. It would be reasonable for AAS to seek to manage these leases and collect the revenue at some point in the future, with appropriate payments to offset the financing payments and maintenance expenses of the County.
Public Works feels that the Mariposa/Yosemite Airport is currently an underutilized asset. Entering into an Agreement with Airborrn Aviation Services will enable a mutual goal of having a safe and well maintained airport facility that serves the public and general aviation community.
BACKGROUND AND HISTORY OF BOARD ACTIONS:
The Board approved the original agreement with KMPI and has met several times to discuss the status of the Airport and the proposals for a Fixed Base Operator.
ALTERNATIVES AND CONSEQUENCES OF NEGATIVE ACTION:
The Board could elect to leave the Mariposa/Yosemite Airport in the status quo, which will conserve money and resources but leave the airport underutilized.
The Board could also direct another Request for Proposal period, but risk losing a local interested potential operator.
The Board could find that parts of the agreement are unsatisfactory and provide direction to Public Works to seek modifications to the proposed agreement.
FINANCIAL IMPACT:
Adjustments to the Airport Budget will be done at a later date to facilitate the FBO Agreement. It is not anticipated that these adjustments will have a negative impact on the General Fund. Currently this budget has no net county cost.
CAO RECOMMENDATION
Requested Action Recommended
