Item 2.2. Joint Meeting - AvPORTS Proposal

Corporate Delivery: Corporate Mailing:
45025 Aviation Drive, Suite 100 PO Box 16860

Dulles, VA 20166 Washington, DC 20041
PROPOSAL FOR:
THE MANAGEMENT, OPERATION, DEVELOPMENT AND
MAINTENANCE OF THE CHICO MUNICIPAL AIRPORT
SUBMITTED TO THE:
CITY OF CHICO, CALIFORNIA
February 2015
TABLE OF CONTENTS
Section A: Management Capacity, Qualifications and Experience ....................... 1

A1. About AvPORTS......................................................................................................................... 1
A2. Similar Airport Management Projects ...................................................................................... 4
A3. Proposed Project Team ............................................................................................................ 5
A4. Air Service Development Capabilities....................................................................................... 6
A5. Comparable Air Service Client: Youngstown-Warren Regional Airport ................................... 8
Section B: Familiarity with Chico Municipal Airport ............................................ 9
B1. Current Challenges.................................................................................................................... 9
B2. Strategy Moving Forward ......................................................................................................... 9
B3. The Future of Air Service at Chico Municipal Airport ............................................................. 12
Section C: Conceptual Plan and Approach ......................................................... 13
C1. During the First Phase of Engagement ................................................................................... 13
C2. During the Subsequent 10 Year Management Contract ........................................................ 13
Section D: Scope of Services .............................................................................. 16
D1. Part 139 Operating Platform .................................................................................................. 16
D2. Airport Operations.................................................................................................................. 16
D3. Airport Maintenance .............................................................................................................. 17
D4. General Aviation Services ....................................................................................................... 17
D5. MIS Systems and Administration ........................................................................................... 17
D6. Employee Training .................................................................................................................. 17
D7. Wildlife Hazard Management................................................................................................. 18
D8. Noise Abatement .................................................................................................................... 18
D9. Transition Plan ........................................................................................................................ 19
D10. Commitment to Sustainability.............................................................................................. 19
D11. Security ................................................................................................................................. 19
Section E: Draft Cost Proposal ........................................................................... 20
E1. Proposed Compensation for Services During First Phase of Engagement ............................. 20
E2. Proposed Management Fee .................................................................................................... 21
E3. Proposed Incentive Fee ........................................................................................................... 21
E4. Mutual Protection Proposal with regard to Phase II 10-Year Agreement ............................. 21
Section F: References ........................................................................................ 22
Attachments .........................................................................................................
Company Information Sheet (RFP Exhibit A) .....................................................................................
Relationship Disclosure Form (RFP Exhibit C) ....................................................................................
Complete Resume of Proposed Airport Manager .............................................................................
Proposal for:
The Management, Operation, Development and Maintenance of the Chico Municipal Airport i
City of Chico, California
Section A: Management Capacity, Qualifications and Experience
A1. About AvPORTS: AvPORTS specializes in
the long-term management of aviation
facilities where strong demand for airport
oriented business development and
commercial air transportation must be
balanced against broad regional economic,
environmental, and development goals and
challenges. Forty-five continuous years of
successfully managing the challenging
Teterboro Airport and 38 years at the
Westchester County Airport serve as fitting
examples of our strengths and durability –
both contracts having been renewed
competitively over the years and both host
communities enjoying the presence of the
airport as a good neighbor and driver of
economic prosperity.
Our time proven approach of “single-point-
accountability” at each airport is achieved, in
part, through the support of central
corporate resources provided to all of our
on-site management teams. Our personnel
are skilled in disciplines including
accounting, finance, human resources,
information technology, operations,
customer relations, the full spectrum of
facility maintenance capabilities, property
management, noise abatement and control,
and environmental management.
Whether managing facilities and staff for
growth, repositioning legacy operations and
assets for retrenchment, or optimizing
performance of a steady state scenario,
AvPORTS has an array of airport
management skills and access to capital that can
be combined to accommodate any client’s immediate need or long term goals.
“What lies behind us and what lies before us are tiny matters compared to
what lies within us.”
-Oliver Wendel Holmes
Proposal for:
The Management, Operation, Development and Maintenance of the Chico Municipal Airport 1
AvPORTS is the longest established aviation
facility operator in the U.S., and one of the
oldest airport operators and aviation service
providers in the world. We can proudly trace
our roots back to the very beginnings of
commercial aviation when AvPORTS was first
organized as the services arm of the pioneering
airline, Pan American World Airways, Inc. From
its first historic flight to Havana, Cuba in 1927,
the airline amassed a reputation for excellence
as a specialized airport/heliport manager and
fixed base operator that continues today in
AvPORTS. Among its many firsts, Pan Am was
the first American airline to build its own airport
and traffic system in 1928. This spawned Pan Am’s entry in 1929 into the airport management
business that was the beginning of AvPORTS. Since then, we have been owned by (and
infused with new competencies from) a number of prominent companies ranging from Johnson
Controls to subsidiaries of Macquarie Bank Limited.
In January of 2009, AvPORTS was acquired by the aviation-oriented real estate investment and
development firm Aviation Facilities Company (AFCO). AFCO has worked with communities and
airports of all sizes from coast to coast on projects ranging from single hangar construction to
the development of the nation’s first privately funded and operated for-profit commercial
airport. Both companies share common administrative resources and many of the same
stakeholders, and they can operate independently or in tandem where beneficial to airport
ownership. Recent projects, such as the historic public-private partnership with the City of
Gary, Indiana for the long-term management and development of the Gary/Chicago
International Airport, have brought the two firms working more closely and strategically
together for the benefit of public owners. AvPORTS/AFCO combined employ more than 600
people across the United States at over two dozen airport locations.
The AvPORTS airport management group currently manages thirteen (13) FAA-certificated
airports, seven (7) of which are Part 139 certified, across the United States. All locations are
supported by the best practices of the entire AvPORTS team of technicians, managers and
administrators. Our vast experiences and integrated support systems ensure the needs of
various airport user groups and stakeholders that include public entities, corporate operators,
and commercial airlines are met at the highest levels of professionalism and performance.
Today, as part of the AFCO family, we are fully aligned with a “strategic” owner who is squarely
in the airport business in a complementary way. This union means that we share common
philosophies in our approach to our respective businesses and provides us with a decided
advantage when seeking solutions that meet a client’s needs. AvPORTS leadership is based in
Dulles, Virginia and Teterboro, New Jersey and stands ready to handle both the ordinary, as
well as the extraordinary, requirements of its many customers.
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AvPORTS is the industry’s benchmark provider of management services at airports, heliports,
and fixed base operations. Our business is the efficient management and operation of mission-
critical air carrier-served, cargo, and general aviation airports, as well as heliports and other
aviation facilities. We focus our attention on the essential drivers and objectives of the facility
owner and its tenants; safety, financial and environmental sustainability, and accountability.
Our credentials are sub-divided along three (3) main business lines. These include:
AIRPORT MANAGEMENT
(Air Carrier, Reliever and General Aviation)
Airport Operations, Planning, Engineering &

Development, Marketing & Air Service Development,
Property Management, Concessions Management, Facility
. Maintenance, Financial Management, Airport Rescue and
Fire Fighting, Noise Abatement, Capital Program
Funding, Community Relations, Environmental
Assessment & Consultancy
FACILITY MANAGEMENT
(Passenger Terminals, Cargo Facilities)
Air Terminal and Hangar Operations & Management,

Planning, Design & Engineering, Contractor Procurement,
Development Management, Project Finance, Marketing &
Leasing, Building Maintenance, Concessions
Management, Equipment Operations & Maintenance
FIXED-BASE OPERATIONS
SERVICES
Fixed Base Operations, Heliport Operations &
Management, Air Carrier and General Aviation Fueling,
Ground Handling, Passenger Ticketing & Check-in,
Ground Support Equipment Operation & Maintenance,
Aircraft Maintenance, Aircraft Charter, Cargo Handling,
Customer Service
Proposal for:
A2. Similar Airport Management Projects:
TWEED-NEW HAVEN (HVN): AvPORTS has
provided continuous airport management
services for Tweed-New Haven Regional
Airport in New Haven, Connecticut since
1998. Tweed is very similar to Chico in terms
of historical passenger air service and
currently has four roundtrip flights to
Philadephia on US Airways turboprops.
AvPORTS was responsible for overseeing the
design, permitting, funding and construction
of a $30 million project to construct full
length runway safety areas for the primary
runway, Runway 02-20. The project included
the relocation of a creek and construction of
twin arch culverts to bury the creek under the
runway safety area, the relocation of a local
road, relocation of public utilities, and
wetlands mitigation for compensation to
impacted wetlands.
WESTCHESTER COUNTY (HPN): AvPORTS has
provided continuous airport management
services for Westchester County Airport in
White Plains, New York, since 1977. AvPORTS
manages and provides day-to-day operations
for the entire airport, contracts ground
handling, oversees all environmental
compliance, managed the installation of and
today oversees one of the first Virtual
Perimeter Intrusion Detection Systems in the
country, and provides air service
development services. Utilizing our in-house
development, financing and engineering
resources, AvPORTS stepped in to assist
airport ownership when a general contractor went into default, invested $2
million of AvPORTS capital, and managed the completion of a major passenger
terminal project.
Proposal for:
A3. Proposed Project Team: AvPORTS manages its airports using a dual approach – a single
point of accountability at each airport backed with extensive corporate resources that add a
breadth and depth of knowledge and experience impossible for a small team to replicate. Our
personnel are skilled in all the disciplines necessary to successfully manage an airport including
accounting, finance, human resources, information technology, operations, customer relations,
regulatory compliance, a full spectrum of facility maintenance capabilities, property
management, noise abatement and control, and environmental management. A Local Airport
Manager will be identified during Phase 1 to lead Phase 2 of the agreement. Locally based
assistance and resources have already been identified to assist corporate personell in carrying
out the due diligence and initial project services slated for Phase 1. Leading the AvPORTS team
will be:
Steve Forrer – CIC Project Manager
Mr. Forrer leads new business development initiatives and is active
in debt and equity origination at both Aviation Facilities Company,
Inc (AFCO) and AFCO/AvPORTS Management, LLC (dba
AvPORTS). He has 25+ years of experience in real estate investment
and development with the most recent 10+ years focused on
transportation oriented infrastructure. He has lead and managed
transactions and platform level investments ranging between $1
and $100+ million that have included private, public, and hybrid
capitalization and ownership structures. He recently led AvPORTS in
securing a historic public-private partnership involving the long-
term management and development of the Gary/Chicago
International Airport and surrounding public lands in Gary, Indiana.
Mr. Forrer holds a Bachelor of Science in Finance from Virginia
Polytechnic Institute and State University (Virginia Tech) and Master of Business Administration
from The George Washington University.
Tom Reich – Director of Air Service Development, AvPORTS
With over a decade of industry experience specializing in airline
planning, scheduling and marketing analysis, Tom provides AvPORTS
clients with valuable knowledge from the airline’s perspective of air
service development, to craft their message more effectively.
Tom was a principal at Air Service Partners LLC and served as a
Research Manager with another air service consulting firm prior to
joining AvPORTS in 2011. Consulting has provided Tom the
opportunity to see the airline industry from the outside making him
an effective facilitator of ideas between airports and airlines.
During his time in the airline industry, Tom worked in various
management positions in market and schedule planning for
passenger airlines over a span of six years, gaining unparalleled
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working knowledge of the airline route planning process. Tom’s most recent airline planning
position was at Colgan Air, a former regional carrier for Continental Airlines, United Airlines &
US Airways. There Tom was in charge of the carrier’s system planning department,
responsible for Colgan Air’s market analysis and route planning functions as well as its
application process for all Essential Air Service contracts. Prior to his time at Colgan Air, Tom
worked at US Airways where he managed the construction and planning of the carrier’s future
mainline schedules. During US Airways’ merger with America West, he played an integral role
in combining the two airlines’ schedule planning functions.
Tom began his planning career at Atlantic Coast Airlines where he specialized in schedule
optimization, fleet utilization, and maintaining the carrier’s partner relationships with both
Delta Air Lines and United Airlines. When Atlantic Coast transformed itself into Independence
Air, his focus changed to include market analysis and route planning. He was a member of the
team that oversaw the planning of Independence Air’s fleet of nearly 100 aircraft as it
transformed Washington Dulles Airport into the world’s largest low fare carrier hub.
Charles Kurtz – Vice President, Engineering & Development, AvPORTS
As Vice President, Engineering & Development of AvPORTS, Mr. Kurtz is responsible for all
planning and development activities at the company's various airport locations. His duties
include planning and programming for facility development,
the development of long-term capital investment programs,
and the management of all construction projects. Mr. Kurtz
also oversees the facility management services of the
company. He is the principal liaison with the Federal Aviation
Administration for acquisition of funding under the Airport
Improvement Program and Passenger Facility Charge Program.
Mr. Kurtz has a strong background in the planning, design, and
development of airports and aviation related facilities, having
worked extensively in both the airport and airline industries
for over 34 years.
A4. Air Service Development Capabilities: As experts in our field, AvPORTS provides our clients
with “Best in Class” Air Service Development, Airport Marketing, and Strategic Planning
services. Throughout a working relationship with the City of Chico, AvPORTS will serve as a
constant advocate for Chico Municipal Airport’s restoration of airline service.
AvPORTS staff experience as airline planners and longtime industry professionals allows us to
provide our airport clients with an intimate understanding of the strategies and decision
making logic that takes place within an airline. Our ability to “Read the Tea Leaves” provides
our clients with a better comprehension of the airline decisions that affect them. This insight
often allows us to accurately predict impending changes in air service, giving our clients more
time to adequately prepare.
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We are always in your
corner and we will be
there for you every step
of the way. Growing air
service is a monumental
task, you shouldn’t have
to do it alone. We offer
our industry knowledge,
expertise and insight as a
tool for you to use
enhancing your existing
air service development
efforts. Working together,
we can ensure that the
City of Chico has the best
chances possible of securing and maintaining air service for Chico Municipal Airport.
At the present time, AvPORTS has ongoing air service development and marketing relationships
with nine airports/authorities:
City: Airport/Authority: Start Date:
Atlantic City, NJ Atlantic City International Airport 1986
Birmingham, AL Birmingham-Shuttlesworth Int'l Airport 2013
Gary, IN Gary/Chicago Regional Airport 2014
Harlingen, TX Valley International Airport 2009
Hagerstown, MD Hagerstown Regional Airport 2013
New Haven, CT Tweed New Haven Regional Airport 1998
Stewart/Newburgh, NY Stewart International Airport 2007
White Plains, NY Westchester County Airport 1977
Youngstown, OH Youngstown/Warren Regional Airport 2010
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A5. Comparable Air Service Client: Youngstown-Warren Regional Airport:Tom Reich has been
the air service development consultant to the Youngstown-Warren Regional Airport (YNG) since
2010. YNG is an airport without daily air service. When Tom began working with the airport its
only service was with Allegiant Air flying twice weekly to Orlando/Sanford Airport. In the late
1990s YNG had three network carriers operating multiple flights a day to nearby hubs. When
Tom began working with the airport the focus of his air service development efforts was to
return passenger traffic levels to those seen in the late 1990s. To accomplish this, Tom began
aggressively marketing the airport to network carriers in the hope of convincing one of them to
re-establish service at YNG. Without any historical O&D data, marketing YNG to network
carriers was virtually impossible since there was no historic data to forecast demand from. To
remedy this situation Tom conducted a leakage study of the catchment area around YNG and
then applied passenger fare data to these leaking passengers to create a pseudo O&D data set.
The data quantified the number of passengers who lived with the YNG catchment area who
were flying from other airports. This data set provided a baseline from which to forecast
passenger demand. The presentations that were subsequently given to airlines were very eye-
opening. Many airlines were very impressed with the analysis and surprised to find such a large
concentration of passengers who were being forced to drive to surrounding airports.
Many of the network carriers being targeted by YNG were unfortunately not in a position to
start new service to smaller communities near their hubs as they were retiring regional aircraft
and cutting marginal routes similar to YNG. However with this analysis Allegiant Air saw a huge
opportunity at YNG and over the course of 2 years it added new service to St.
Petersburg/Tampa (PIE), Myrtle Beach (MYR) and Punta Gorda (PGD) in addition to increasing
flight frequency to Orlando/Sanford (SFB). Allegiant Air now serves YNG with an average of 8
flights per week, soon to be increasing to 10 flights per week this October. In 2012 the airport
set a record for passenger enplanements and in 2013 the airport exceeded 2012’s figures more
than 20%. Despite not attracting a daily network carrier to YNG yet, the airport has exceeded its
main goal of returning the airport’s passenger traffic figures to its previous peak.
As YNG’s quest for daily air service continues it was successful in securing a $1.2 Million Small
Community Air Service Development grant to help support new network carrier service. Tom
was instrumental in the construction of YNG’s grant application and he is currently aiding the
airport in advanced discussions with a network carrier to use the grant to start twice daily
regional jet service to a nearby hub.
Proposal for:
Section B: Familiarity with Chico Airport
B1. Current Challenges: CIC shares a financial
challenge faced by many small to mid-size U.S.
airports. Annual revenues do not meet total
needs to operate and maintain the facility. The
airport facility requires extensive maintenance,
rehabilitation, and improvement work each year
regardless of peaks and valleys in traffic. In
addition, regulatory authorities may impose new
responsibilities and not necessarily provide
additional funding. This is often true with FAA and
TSA requirements.
At some airports, these financial shortfalls are
temporary, reflecting short-term downturns in the national or local economy, and the airport
can take short-term steps to balance its budget until revenues increase.
However at CIC, the City's records show that this shortfall has occurred for many years, and that
seems likely to continue unless significant changes are made.
The shortfall has resulted in service deficiencies, and in the long run may reduce the safety and
security of the airport. Ultimately, the airport may cease to effectively serve the community
unless it can be repositioned to focus on its strengths and market driven demand.
B2. Strategy Moving Forward: We believe the City has taken an important initial step to
address this problem with the subject Request for Proposals. Based on its experience at other
airports, AvPORTS feels it can develop and implement a full and comprehensive six step
approach at Chico that will produce concrete, positive results.
The six basic strategies to address this problem include immediate and long-term actions. Four
steps are focused on cost management and reducing cost exposure. The final two steps are
broad approaches to revenue enhancement.
Step One: Cost Reduction
The first step, immediate cost cutting, has clearly been applied, but may need to be revisited.
Documents and media coverage show that certain maintenance has been deferred. In some
cases staffing has been reduced. These efforts produce immediate cost reductions, but can
produce negative longer-term consequences, such as facility conditions that no longer comply
with federal and state regulations, or provide quality service to users.
AvPORTS will thoroughly review all costs and cost reduction efforts to date. Each current cost
must be fully justified. Does that expenditure provide immediate benefit to the airport and its
users? Does the expenditure maintain or preserve the facility? Even if the answer to these
questions is yes, AvPORTS will look for ways to reduce and minimize all costs. In doing so,
AvPORTS will also take the longer view; to make certain that an immediate saving does not
produce unacceptable future consequences. It is important to note that we may propose
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actions that initially increase operating losses, however, such a recommendation will be made
within the context of defendable present value analysis.
Step Two: Optimize Financial Relationship with the City
The second step is to evaluate and optimize the airport's financial relationship with the City.
For many reasons, common in many City and County managed airports, the airport cross-
utilizes services from other arms of City government. For example, City fire fighting resources
are used to meet FAA ARFF requirements at CIC. We understand that the City's resources also
provide accounting, personnel management, and other support functions for the airport.
The airport is expected to, and should, reimburse
the City for the fair value of such services. The
problem that can arise is that the cost allocation
for these services may change over time (and
appears to be changing at CIC). Those changes
can mean that the airport is asked to pay for more
services than it needs, or receives. It may also be
that certain services can be obtained for a lower
cost from outside vendors.
At CIC, these service and cost allocation issues will
be reviewed by AvPORTS to make certain that the
airport obtains the best services for the least cost. If the service is best provided by the City,
AvPORTS will make certain that the Airport pays a fair amount for those services. Our broad
range of experiences with airports similar to Chico positions us to make recommendations in
this regard – we know what costs should be and we have seen every allocation rationale in the
book.
Step Three: Plan for the Long Term for Facility and Equipment Maintenance
The third step is to take a longer view of facility and equipment maintenance issues. Should the
airport continue to repair old pavement or old vehicles and equipment? Is it better off, in the
longer term, by investing in new pavement, requiring less annual maintenance? Is it better off
with new building systems and vehicles that require less maintenance (and perhaps reduce
total energy costs)?
AvPORTS views its role as managing the airport with a long-term perspective. If a new system
or piece of equipment can improve the airport, but has a multi-year payback, AvPORTS will
work to develop a plan to pay for that equipment so that the airport gets the maximum long-
term benefit.
Step Four: Review Facility and Operational Efficiencies
Fourth, as part of the general decision to implement contract airport management with
AvPORTS, certain facilities/activities at the airport might be separated so that they operate on
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their own budgets, without any claim back on the general airport finances. On the other hand,
certain operations might be combined to cross-utilize personnel and other resources.
These first four steps primarily relate to cost control. Equally important are approaches to
enhancing and stabilizing the airports revenues.
Step Five: Review and Improve Revenues
Fifth, AvPORTS will evaluate all current revenue sources for improvement. This review will
answer key questions:
 Are all existing fees set at an appropriate level?
 Are any fees established or collected so that the cost of collection exceeds the revenue
to the airport?
 Are any classes of users not being charged for use of the facility, when other airports in
the region do charge for similar use?
 Are all current tenants and users paying current charges? Are all users paying for all the
space/equipment/ facilities they use?
 Are delinquent users charged appropriate late fees, and if necessary, denied access to
the airport?
 Are any current users operating beyond their original term of lease or agreement,
paying the old rate on a month-to-month basis? Any such situation should be promptly
addressed and new rates put in place (doing so should increase revenues, but will also
demonstrate to the FAA that the airport is complying with its obligations under its grant
assurances. Under Federal law, the FAA must withhold grant funding if the airport is not
in compliance with those assurances.)
In every case, AvPORTS will diligently work to take these answers and produce concrete,
sustainable revenue increases.
Step Six: Business Development
The sixth step by AvPORTS will be to identify and obtain new or expanded use(s) of the airport
and its facilities. As just one example, the airport has a history of supporting significant aerial
firefighting activities each year. We understand that the resulting traffic has been enough to
require the temporary closure of taxiways to park planes. Recognizing other airports have
already seized on this opportunity in the region, AvPORTS will work with the City and other
local and regional economic development entities to consider developing a plan to find funding
for facilities to support the return of firefighting activities to Chico. In exchange, the airport
should receive additional use fees and rentals, and the community would benefit from more
seasonal and year-around employment and economic activity. The pursuit of non-aeronautical
revenue and market-driven real estate development will be prioritized in overall business
development efforts.
Taken together, these six steps by AvPORTS will strengthen the airport's finances, both in the
short and longer-term.
Proposal for:
B3. The Future of Commerical Air Service in Chico: At AvPORTS we work every day with
airports that are in a similar situation to Chico. With a smaller population, air service in Chico
may never be described as “robust.” However, there is a sustainable level of air service that can
be maintained by the Chico community provided a larger portion of local passengers choose to
use their local airport. There are many communities around the nation of similar size to Chico
that have more air service. Granted, these communities may not have the close proximity to
larger airports in nearby cities as does Chico to Sacramento and the Bay Area. Although these
options make it difficult to capture all of CIC’s potential passenger demand, through marketing
and community outreach it is possible to bring passengers back to the airport if an airline
provides the community with affordable schedules to places people want to go.
The Airport’s most recent service to San Francisco is not the type of service that will attract
passengers to the airport, as years of past performance proves. The operational reliability of
the EMB-120 coupled with fog issues in SFO made it a less than deseriable or reliable way to fly.
Forcing passengers to connect via a hub that they can drive to with only moderate
inconvenience didn’t help.
The key to re-establishing air service in Chico is to attract air service the passengers want to
use. Based on point of sale passenger data from Chico and its surrounding regions we can tell
that a very small portion of airline passengers from the Chico region actually used SkyWest’s
United Express service to SFO. By attracting regional jet service to hubs such as: Denver, Los
Angeles or Salt Lake City, which offer better access to nationwide connections, Chico residents
will become increasingly more likely to fly Chico first. In addition to these daily hub services,
attacting a low-fare carrier like Allegiant Air for twice weekly service to Las Vegas would provide
the airport with much needed passenger enplanements while providing the community with
affordable nonstop service to one of its most popular destinations.
Air service development is a long and tumultuous road. At AvPORTS we have a great deal of
experience navigating that road on behalf of the airports that trust us to give them the best
opportunity possible to succeed. We look forward to the opportunity of joining you on this
journey toward air service success
Proposal for:
Section C: Conceptual Plan and Approach
We propose a two phase approach as outlined below with further detail provided in Section E
as required under the provisions of the Request for Proposals.
C1. During the First Phase of Engagement: Upon execution of the Agreement, AvPORTS will
hire local resources as acting manager consultant to serve on a part-time basis during the first
year of due diligence, planning and transition. Local on-call staff will manage the majority of the
day-to-day operation, including management of the City of Chico employee assigned to the
airport. AvPORTS corporate staff will visit and frequent the Airport on a routine basis to assist in
a company-wide effort of due diligence, gathering essential information, performing extensive
reviews and analysis, as well as beginning the strategic planning for the full take-over, growth
and development of the Chico Municipal Airport. Corporate resources to be used during this
first phase of engagement include Accounting, Air Service Development, Business
Development, Engineering, Human Resources, and Operations Expertise resources among
others. The deliverables for the first phase of services will include: full review of FAA
compliance, full review of airfield conditions and report of recommendations, air service
development strategy, review of airport structures and associated report, full take-over staffing
plan, five year financial pro-forma for all revenue and expenses, and a proposed 10-year airport
management agreement, all to be completed by 12/31/2015 (itemized timeline presented in
Section E: Draft Cost Proposal). In addition, AvPORTS will during the first phase of engagement
identify a qualified local professional to assume the position of Airport Manager during Phase II.
C2. During the Subsequent 10 Year Management Contract: We propose to provide full airport
management and strategic business development services for the Chico Municipal Airport on a
cost plus fee basis as Phase II of our agreements. We will place key staff on site AND utilize the
depth and breadth of AvPORTS’ corporate team and resources to ensure that CIC is successful.
Should there be contractual or other issues relating to current staff, we will address those
including, if appropriate, keeping current staff in place. We know that while the safe
functioning of the airport is paramount it is also important how the community and users feel
about the airport – and we will work to ensure that CIC is regarded as a preferred destination
with capable and friendly staff.
All points of the plan will be based upon our due diligence of the needs, priorities and existing
capabilities at CIC under Phase I of our engagement.
AvPORTS routinely works with the owners of the other airports it operates to ensure clear,
effective, and timely information flow and decision-making throughout our tenure. AvPORTS
understands that at Chico, the City, and no one else, is the client. AvPORTS will establish clear
lines of communication with the City, including elected and appointed officials and staff, and
will schedule routine briefings to keep all City leaders up to date.
At the completion Phase I, AvPORTS and the City will have defined:
-A comprehensive vision for making the airport successful
-What airport decisions and actions can be made by AvPORTS without prior consultation
with or direction from the City
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-What airport decisions and actions can be made by AvPORTS with prior consultation
with the City, but which do not require express City approval
-What airport decisions and actions can only be made by AvPORTS with prior
consultation with the City, and with express City approval
As to each of these categories of consultations and decisions, AvPORTS and the City will agree
on the specifics of how consultation and approval shall occur, particularly who will represent
each side in these decision-making processes.
With these clear lines of communication and decision-making the City and AvPORTS will be able
to promptly move to enact its Phase II 10-Year Plan.
Even if all existing staff are retained, AvPORTS will place a full-time Airport Manager at CIC. We
will ensure that the Manager has a background in the management of airports similar to CIC.
All additional functions, such as operations, finance and development will be filled with a
combination of full time, Chico-based staff and corporate resources. When deciding whether a
position should be a local one or can be handled by existing AvPORTS capabilities we will look at
such factors as number of hours required per week, necessity for function to be on-call and the
most cost-effective way to fill the need.
AvPORTS will work to support existing and future tenants while ensuring that the Airport’s
revenue and safety are ensured. As one of its first actions AvPORTS will thoroughly review all
current leases, service contracts and operating agreements to make certain that the City's
interests are protected, that maximum revenues are obtained, and that all safety and security
issues are addressed. At many airports operational practices and facility uses evolve over time,
and often the written agreements are not followed or enforced.
AvPORTS will immediately recommend correction of critical economic or safety issues as part of
Phase I. All tenants and users will be required to follow their written agreements and pay all
their amounts due to the airport. Where appropriate, AvPORTS will make recommendations to
the City to alter or even recommend cancelation of existing agreements in order to enhance the
airport's service delivery and financial status.
At Chico, AvPORTS understands the impacts of the loss of scheduled passenger air service, and
will work with the community to seek replacement service. But we will also work on other
opportunities. For example, as mentioned earlier, the pending expiration of the State contract
for an aerial firefighting base at Chico presents an immediate need for management to retain
and enhance this activity, but we expect to identify other areas of opportunity should you
decide to pursue our management services. Areas such as alternative energy production, land
uses complimentary to the airport, but not necessarily aviation oriented, and re-deplyment of
under utilized airport owned facilities are examples that we feel may bear fruit for Chico.
AvPORTS understands that no airport can be successful unless passengers, pilots and other
users find that the airport fills their needs. AvPORTS will work with all users of the airport to
understand their needs and adjust operations to make Chico more appealing to users.
Proposal for:
Looking more broadly, we will investigate other potential opportunities: Can the airport obtain
more corporate aviation activity? Can the airport develop a closer role with the State
University to develop training related to aviation? AvPORTS will evaluate these opportunities
and present suggestions to the City and the community. As it does at its many other airport
locations, AvPORTS will not make these decisions for Chico, but will instead provide the
information so that the community can make the best decision. When that decision is made,
AvPORTS will do its best to partner with the community to make the idea a reality.
Executive management will monitor the practical work that needs to be done such as
streamlining work processes; optimizing the utilization of resources; developing performance
standards and creating proactive planning mechanisms tied to business unit requirements.
Proposal for:
Section D: Scope of Services
We propose to manage Chico Municipal Airport through the integration of CIC with our in-place
airport management platform (full deployment will occur in Phase II). Our operational vision
and parameters for CIC, in addition to Air Service Development services outlined above, consist
of the following key points:
Approach: The foundation of our proposal is built on AvPORTS’ “Integrated Airport
Management System” (IAMS). IAMS is premised on a blending of the administration,
operations, maintenance and the general aviation service disciplines under one corporate
umbrella. This realizes tremendous benefits for our Team including cost savings, reduced need
for managerial staffing, optimum coordination among business units, enhanced functional
efficiency through transparent and cost-effective staff cross-utilization and, perhaps most
beneficial of all, true “single-point-of-accountability”.
D1. Part 139 Operating Platform: We propose to operate
CIC to a 14CFR Part 139, Class III safety standard with
24/7/365 “inside the fence” airport security. With regard to
ARFF and ATC activities at CIC, we propose the provisioning
of services and payment for same to remain unchanged.
Moreover, all Class IV operating protocols will be diligently
implemented including airfield and perimeter security
inspections, work-order and digital NOTAM management
and surface condition surveys. The centerpiece of assuring
the safety standard is consistently recognized will be
through the use of AvPORTS’ proprietary airport
management software system called AvPORTAL. Within
this area of responsibility we also will ensure full
compliance with FAA matters inlducing grant funding.
Where we identify areas of compliance risk, we will put
forth specific corrective actions plans to ensure CIC is able
to avail itself to all areas of governmental support and
funding.
D2. Airport Operations: Our personnel will conduct a
physical assessment of the airport's runways, taxiways, aprons
and other aeronautical surfaces on a schedule that fulfills or exceeds 14 CFR Part 139 Class III
specifications. Supplemental inspections will be conducted at the discretion or instruction of
the Airport Manager. A record of each inspection will be documented for permanent reference
by other members of the staff and for review by the City of Chico when requested. Moreover,
our staff will also be responsible for the removal of any and all debris or foreign objects from
the runways, taxiways, etc. and notification to management of any abnormal conditions which
require corrective action. A Daily Aeronautical Checklist will be completed at the conclusion of
each inspection using AvPORTAL. The findings of these inspections will be reviewed by the
Airport Manager daily. Operations personnel will also conduct checks of the airport perimeter
to ensure that the airport has not been breached.
Proposal for:
D3. Airport Maintenance: All
maintenance and repair work of
aeronautical surfaces and systems,
airfield lighting, grounds,
buildings/landscaping, vehicles, material
handling and equipment will be
conducted on a Monday-Friday schedule
with call-in services during off-hours and
weekends. All maintenance will be
performed in accordance with California
state and local standards and best
industry practices. Strict compliance with
safety standards will be observed at all
times. The Airport Operations Center
will coordinate all facilities maintenance services and work documentation. Teaming
arrangements will be put in-place with outside contractors to provide a reliable and
experienced source of expertise for repair work beyond the capabilities of existing staff. Our
Airport Manager will make daily personnel assignments to accomplish scheduled tasks, monitor
performance, and inspect for quality and conformance to City of Chico’s work specifications.
Our Manager will also oversee the administration of our in-house maintenance management
system (AvPORTAL). This provides a coordinated effort in that both Operations and
Maintenance personnel perform inspections and can generate a work request.
D4. General Aviation Services: All transient and any based operations services will be
administered by airport employees rigorously trained and, where required, certified to the
highest industry standard. Our personnel will oversee all ramp marshalling, aircraft parking,
passenger deplaning, baggage handling, aircraft fueling and, when requested, towing. Minor
cabin cleaning will be available upon request.
D5. MIS Systems and Administration: We will use the industry leading TotalFBO system to
manage the airport and general aviation operations. TotalFBO is a comprehensive software
solution that includes general ledger, accounts payable, accounts receivable, order entry,
purchasing, inventory control, fuel farm management, and tracks physical movement of fuel
from delivery into tank, to truck, and into plane, point of sale with touch
screen processing and online credit card validation. TotalFBO will
provide on-site management with the essential performance
information to effectively manage the operations as well as provide
insightful financial information. Access to the system will be limited to
those individuals with an assigned user code and password.
D6. Employee Training: AvPORTS will implement a rigorous training
program. No employee will be permitted to conduct any activities on
the airport (e.g., airfield inspections, fueling of aircraft, etc.)
unsupervised unless and until they have completed an extensive,
Proposal for:
company-sponsored training program and have obtained
industry-recognized certification. Once initial training is
completed, all of our personnel will be required to
complete re-current training throughout the year. To do
this, AvPORTS will employ a comprehensive, company-
developed training syllabus. This road-map is
supplemented by a series of industry-generated training
tools as well as hands-on training support from our
suppliers (e.g., fuel, airfield lighting, etc.) Our curriculum is
comprehensive and covers critical items such as accepting fuel
deliveries, performing quality inspections of the fuel product, spill prevention, control and
countermeasures, operation and maintenance of the above-ground fuel dispensing systems,
how to fuel various aircraft and helicopter types and responding to emergencies. A technical
library consisting of various training and operating manuals will be kept current at the facility as
will all employee training records. Throughout the year AvPORTS hosts internal symposiums
and peer group seminars which permit all of our personnel to participate in the continuing
development of “best management practices”.
D7. Wildlife Hazard Management: AvPORTS will oversee the development of a Wildlife
Hazards Management Plan and will ensure that its requirements are implemented and
monitored. It will file all necessary documents associated with the monitoring of the plan. We
have specific recent experience in California with regard to this area of activity and are very
confident in our ability to put in place a cost effective and
successful plan.
D8. Noise Abatement: We propose to continue to be
guided by local and state noise parameters as part of
our airport management activities. Further, we are well
versed in community relations relating to noise issues
(largely through our management of Teterboro Airport
in densely populated northern New Jersey) and are
confident that we can ensure that CIC will continue to
be a good neighbor. Similar to Teterboro, at CIC, our
operations staff will serve as the receptor of noise
complaints from local citizens. All complaints will be fully documented and we will confer with
CIC’s air traffic control tower personnel to ascertain how the offense occurred and how it can
be prevented in the future. This information is fully disclosed back to the complaining resident
and also to the operator. We will host noise workshops with users periodically and will provide
operators with information that helps reduce the impact of noise (e.g., reduced power
departures, preferred departure and arrival routing, etc.) We recognize that noise is a serious
concern, addressing such concerns, however, requires an experienced “touch“, one that is
considerate to community issues and is proactive in finding workable solutions.
Proposal for:
D9. Security: We will ensure 24/7/365 airfield and facility security through a combination of
staff and technologically with the expectation that, should you decide to pursue our services,
this all important area of airport management will be an initial area of our due diligence
process.
D10. Commitment to Sustainability: Green is the new gold. To do our part, we will, among
other things, employ an aggressive re-cycling and hazardous waste recovery program and will
create a partnership with our suppliers and service vendors to do the same. We will also
establish a Spill Prevention Control and Countermeasures (SPCC) Plan and will train all staff in
the responsible handling of HAZMAT through a comprehensive HAZMAT Communications Plan.
Within the first five (5) years, we will apply best efforts to certify CIC under ISO-14001
Environmental Quality Standards. AvPORTS is currently ISO-14001 certified at Westchester
County Airport (HPN) and are positioned to overlay the certification templates we developed
there for use at CIC.
D11. Transition Plan: Having transitioned into new projects many times allows AvPORTS to
prepare and implement a comprehensive transition agenda for CIC. To do this, a seasoned
team of qualified airport professionals from within AvPORTS will be on-site to design, develop,
install and test all operational, technical and administrative systems, which will be necessary to
allow the airport to function effectively under Phase II. A detailed checklist will be used to make
certain that all necessary processes are put in-place prior to the full hand-over date.
Overseeing these efforts will be AvPORTS’ executive team whose role in this regard will be to:
streamline work processes; optimize the utilization of resources; develop performance
standards; establish thorough commissioning programs; create proactive planning mechanisms
tied to business unit requirements; and, serve as the primary liaison with the City of Chico, CIC’s
tenants/users and, where appropriate, the FAA.
Proposal for:
Section E: Draft Cost Proposal
E1. Proposed Compensation for Services During First Phase of Engagement: The
compensation expected for each of the basic or additional services as proposed during the first
phase of engagement are as follows.
We propose to be paid a monthly fee of $20,000 (plus reasonable travel and accommodation
expenses up to $5,000 per month) to a total maximum of $190,000 for Phase I which is
expected to be completed by 12/31/2015. The basic services for this fee will include:
-We will have a regular local presence throughout Phase I. In additional to on-staff
AvPORTS professionals performing on-site visits, local assistance is planned and will
report to us, be paid by us, and will be sub-contracted during Phase I within above
proposed fee structure. Local staff will support our company wide effort with regard to
the various deliverables we are obligated to produce during Phase I. Any local
assistance will attend important airport related meetings if AvPORTS staff is unavailable
and will be available to Chico staff and elected leadership for questions or updates of
our progress. Local staff may be our liaison with airport tenants, the FAA, and Chico
staff associated with the airport. We will seek approval from Chico for any planned
contact with any tenants, FAA, or vendors relating to our airport activities. Local and
corporate staff will not have any managerial control or responsibility at the airport
during Phase I under this Proposal, however, we and they will be fully engaged during
Phase I in working toward taking on full managerial responsibilities under a long term
management agreement during this Phase I period.
-Full review of FAA compliance with recommendations on any corrective action that
needs to be undertaken. Report will be provided by 6/1/2015.
-Full review of all airfield conditions with report to identify and determine approximate
costs to remedy any deferred maintenance. Report will be provided by 6/1/2015.
-Initiation and origination of a strategy to seek a return of scheduled passenger service.
Actual execution of this plan may not take place prior to 1/2/2016, but all applicable
data analysis and a specific calling plan will be prepared and presented prior to
12/31/15.
-Review of existing structures on the airport including the formulation of
recommendation to lease, raze, or retain “status quo” on every airport owned building.
Report will be provided by 6/1/2015.
-A proposed staffing plan that will be predicated on AvPORTS taking on full managerial
control of airport beginning 1/2/2016 will be provided for review and discussion prior to
9/30/2015.
-A five year financial pro-forma for all revenue and expenses (on a pre-tax/cash basis) of
the airport will be prepared and delivered for review and discussion by 9/30/2015.
-A proposed 10-year airport management plan will be presented for review and
discussion by 10/31/2015. The AvPORTS Airport Manager, assigned full time to manage
Proposal for:
Section E: Draft Cost Proposal
Chico under this agreement is planned to have finalization of employment in this regard
completed prior to 10/31/2015 with an expected start date of 1/2/2016.
E2. Proposed Management Fee: We propose that beginning 1/2/2016, a 10-year management
agreement with AvPORTS commence where under all elements of airport management and
marketing will be provided by AvPORTS and its employees on a cost plus an annual fee basis.
Any operating losses incurred will be the responsibility of airport ownership.
Costs will be based on the 1st year of the above mentioned 5-year pro forma. The annual fee
will be $120,000, payable monthly in advance with such fee to be included in the budget for
agreed upon costs.
E3. Proposed Incentive Fee: AvPORTS will receive an incentive fee equal to 20% of airport
EBITDA after the airport has recovered dollar for dollar any negative operating losses it has
funded after 1/1/2016 under the 10-year management agreement.
E4. Mutual Protection Proposal with regard to Phase II 10-Year Agreement: In the event a long
term management agreement cannot be agreed upon by 11/20/2015, AvPORTS will have no
further liability or claim on any compensation of expense recovery except for that due prior to
1/1/2016. Chico will have no obligation to AvPORTS other than the Phase I monthly fee and
limited expenses recovery.
Proposal for:
Section F: References
REFERENCE SERVICES
Contact: Mr. Michael Geiger, P.E. Operations

Title: Airport Director – NYSDOT Maintenance
Phone: 631-752-7707, Ext. 6111 Admin-Accounting
Email: mgeiger@dot.state.ny.us # Employees: 23
Contact: Mr. Jay Pisco Operations

Title: Commissioner – Public Works Ground Handling
Phone: 914-995-2552 ARFF
Email: JPisco@westchestergov.com # Employees: 58
Contact: Mr. John O’Donnell, P.E. Operations

Title: President & CEO Parking/Shuttle Bus
Phone: 618-242-2222 Art Program
Email: jodonnell@albanyairport.com # Employees: 185
Proposal for:

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Corporate Delivery: Corporate Mailing:

45025 Aviation Drive, Suite 100 PO Box 16860

Section A: Management Capacity, Qualifications and Experience ....................... 1

Airport Operations, Planning, Engineering &

Air Terminal and Hangar Operations & Management,

Contact: Mr. Michael Geiger, P.E. Operations

Contact: Mr. Jay Pisco Operations

Contact: Mr. John O’Donnell, P.E. Operations

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