SR-06-14-2011-3XCity Council Meeting: June 14, 2011
Agenda Item: 3 -X
To: Mayor and City Council
From: Robert Trimborn, Airport Director
Subject: Contract with Vector Airport Solutions to Operate the Airport's Landing
Fee Program
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract with Vector Airport Solution a Chantilly, VA based Company in an
amount based on 21 % of net receipts, not to exceed $400,000 during the four year term
of the contract, to provide for the capture of aircraft operations; data management and
reports; billing and collection.
Executive Summary
Vector Airport Solutions is recommended to operate the Airport's Landing Fee Program
to include capture of aircraft operations, data management and reports, and billing and
collection. The annual cost for this service is based on 21% Net Receipts with an
annual cap of $100,000 each year. The system will enhance the capture of aircraft
activity and result in operational efficiencies.
Background
The current Landing Fee program methodology was established by a settlement with
the Federal Aviation Administration in 2005 and requires every non -based aircraft to pay
a fee of $2.07 per 1,000 pounds of maximum certificated gross landing weight.
Currently; the Airport utilizes a proprietary internet application to facilitate the processing
of landing fees via a platform used by staff to process aircraft arrivals, enter payments,
billing and manage account data. This process is difficult to maintain, audit, and places
an undue burden upon Airport staff.
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Capturing aircraft arrivals currently requires the use of several resources, including staff
to visually track and log -in aircraft arrivals and verify tabulate and process all landings
through flight track data and FAA tower recordings.
Once the landings are verified and the accounts established, staff instructs the vendor
to commence the billing cycle. The bills are then sent from the vendor to the users who
then remit payment to the Airport Office whereupon staff processes the accounts
receivables.
Discussion
The tasks of capture, tabulation, verification, billing and account receivables became
extremely time consuming and have resulted in the need to periodically reassign staff
from their normal duties in order to adequately maintain the program. Over the last two
years, staff has been exploring possible alternatives to the current program that offer
more comprehensive approach and take advantage of contemporary technology to
improve efficiency, effectiveness, customer service and significantly expand the Noise
Management and Security programs database.
Contractor Selection
On March 24, 2011, staff prepared Request for Proposal (RFP) for Operating the
Airport's Landing Fee Program and advertised it nationwide. Four potential service
providers responded. After careful review and analysis, Airport, Finance and City
Attorney's Office staff identified Vector Airport Solutions as the most responsible bidder.
Vector Airport Solutions was the only service provider that met all the City's criteria of
aircraft tracking, verification, billing, customer service, collection, and reporting. One
other submittal met the criteria of the RFP, but the price was significantly higher than
Vector Airport Solutions. The other two submittals did not meet all the requirements of
the RFP.
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Vector Airport Solutions is based in Virginia and has been in business since 2005. Their
proprietary product has been deployed in five airports nationwide with additional airports
scheduled to go online in 2011. Vector's FlightRev program comprehensively addresses
all aspects of a landing fee program. The system manages revenue generation by
automating each of the major functions. required to derive revenue from aircraft
operations: Aircraft tracking; verification; billing; customer service; collection; and
reporting. This will result in capturing more aircraft, generating more landing fees, an
expansion of the operational database, staff efficiency, and improved customer service.
Vector's Aircraft Tracking /Capture /ID system has been proven to identify more aircraft
than a radar -based system similar to the one currently being used at Santa Monica
Airport. The system to be deployed at the Airport by Vector will automatically detect and
identify 100% of fixed wing aircraft associated with the landing fee program and store
the data including aircraft pictures. All data regarding these aircraft operations will be
available to airport staff through Vector's web based portal. This system uses three
overlapping, integrated technologies to capture aircraft 24/7 under both Visual Flight
Rules and Instrument Flight Rules. The system includes: solar - powered air traffic
Imaging Systems (cameras); SCOUT Transponder Receiver (a second layer to identify
aircraft in the air); and flight plan data (data received FAA radar data). Vector's proposal
incorporates providing all necessary equipment including maintenance of on -site
camera system, servers and transponders.
Financial Impacts & Budget Actions
The contract amount to be awarded to Vector Airport Solutions would be 21% of net
receipts payable monthly with an annual cap on charges of $100,000 each year. The
percentage approach insures that the associated costs will be proportional to the
revenues generated by the program. It would insure that fluctuations of the market,
those that aviation is subject to, do not obligate the City to extensive fixed costs. The
proposal also provides assurances to the City of no capital or maintenance costs.
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Funds are included in the FY2010 -11 budget at account 33631.544390. Budget
authority for future years will be included in the respective proposed budgets for
Council's review and adoption.
Prepared by: Robert D. Trimborn, Airport Director
Approved:
Robert rimborn
Airport Director
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Contract No. 9384
(CCS)