The URL can be used to link to this page

Home My WebLink AboutWork Authorization Augusta Richmond GA DOCUMENT NAME: \AlGI'" It( A,xtJ,O(:z.c,{.;Oi'"'l DOCUMENT TYPE: YEAR: OJ- BOX NUMBER: 17 FILE NUMBER: ) (s; 3'75 NUMBER OF PAGES: '\0 . f _ ~~ ~ j AUGUSTA-RICHMOND COUNTY COMMISSION .JAMES B. WALL CITY ATTORNEY LEE BEARl! TO,\IMY BOYLES UL~IER BRIDG,:S A,~IlY CHEEK BORRI' G. IL\NKERSON \\'ILLI"~IB. r;UIILKE. .IR. \\'~I, "WILLIE" H. ~1"YS. III STEI'I1E,N E. SHEPARD ~IARrON 'VJLLl/\~IS BOB YOlii\G i\'layor P.O, Box 2125 454 GREENE STREET AUGUSTA, GA 30903 BlIS, 1706) 821.2488 FAX No: (706) 722-5984 E-O~t~b~-~J;)218oI2NDGA ,us GEORGE n. "OUl Administrator RICHARD L. COLCLOllGH i\'layor Pi'U TCIll Federal Express Mr. jVlike G. Moroney Black & Veatch 1855 Gateway Blvd., Suite 1000 Concord, California 94520 RE: Black and Veatch \Vork Authorizations General Advisory Airport Consultant Services Our File No. AR-6]-038 Dear Mike: I enclose herewith one original fully executed copy of the following Work Authorizations, to \-vit: 1. Work Authorization Number Three in the amount of$],300.00; 2. Work Authorization Number Four in the amount of $69,942.00; 3. Work Authorization Number Five in the amount of $] 7,280.00; 4. Work Authorization Number Six in the amount of $] 67,300.00; 5. Work Authorization Number Seven in the amount of $44,000; and 6. Letter Agreement dated September 6, 2002 - Strategic Planning 'vVorkshop in the amount of $24,765.00 By carbon copy of this Jetter, I am delivering a duplicate original to the Aviation Commission for their records and a copy to Lena Bonner for inclusion in the City's permanent records. With best personal regards, I am Yours very truly, ,.-, . / . J L~...v U James 8, Wall JB\V/sjp Enclosures ~.. ~ ~~~ :.<". Cc: Mr. Ken Kraemer (\vithout enclosure) Ms. Eve Cawley (with enclosure) tvlrs. Marcie \Vilhelmi (without enclosure) Ms. Lena Bonner (with enclosure) J '...... , , . ) WORK AUTHORIZATION NUMBER THREE GENERAL ADVISORY AIRPORT CONSULTING SERVICES AUGUSTA REGIONAL AIRPORT TASK: ANALYSIS TO DEVELOP AIRCRAFT STORAGE HANGAR RENTAL RA TES Black & Veatch will prepare an analysis to determine defendable hangar rental rates based on industry standard methodologies for Hangars One and Two. Factors to be .considered in the analysis will include, but may not be limited to, direct and allocated construction costs (including the allocated costs of bringing utilities and access to the construction site); assumptions regarding occupancy rates; assumptions regarding mix of aircraft to be hangared; and, assumptions regarding rate of return on investment. The analysis will include up to two sensitivity alternatives to determine the level of the Commission's flexibility in establishing rental rates that will generate an appropriate return on its investments in Hangar Two while recognizing the significant difference in product quality between Hangar Two and Hangar One. The analysis will also consider the data collected by Airport mallagement with respect to hangar rental rates in place at other competing airports. Black & Veatch will also make recommendations regarding minimum lease terms and methods for adjusting hangar rental rates over the lease terms. Task Output: Letter report with recommended rental rates for Hangar One and Hangar Two. ~ . "" .. , , It Work Authorization - Hangar Rental Analysis Augusta Regional Airport Page 2 PROFESSIONAL SERVICES FEE The proposed professional service fee for the Hangar Rental Analysis described above is a fixed fee of$I,300. AGREED TO AND ACCEPTED: rrBY Title AUGUSTA AVIATION COMMISSION' ~~. it~ 'By .~ 9 /;6/02- / / ATTEST: Title Date Date BLACK & VEATCH By:~2-- ~ ~ Title ~.~-f Date <3 J t [) ) 0 'J.- ~ ./:- f , WORK AUTHORIZATION NUMBER FOUR GENERAL ADVISORY AIRPORT CONSULTING SERVICES AUGUSTA REGIONAL AIRPORT TASK: DBEPROGRAMPLAN Prepare a DBE Program Plan in accordance with Phase I and II of the attached scope of servIces. The professional service fee for the preparation of the DBE Plan (Phases I and II below) is a fixed fee in the amount of$69,942. AGREED TO AND ACCEPTED: AUGUSTA A VIA ~~ ~JMMISSI?N ~BY ~~<l~ Title (~~~ 9 /10 /6~ f. I ATTEST: By Title Date Date By .. Title Date ~ .. Disadvantaged Business Enterprise Program Scope and Budget PHASE I * CONDUCT A STUDY TO DETERMINE THE NUMBER AND AVAILABILITY OF READY, WILLING AND ABLE DBE AND/OR POTENTIAL DBE FIRMS IN THE AUGUSTA-RICHMOND COUNTY AREA THAT CAN PERFORM THE TASKS REQUIRED FOR AUGUSTA REGIONAL AIRPORT'S AlPs: 1) PREPARE A DBE DIRECTORY OF THAT DBE & POTENTIAL DBE POPULATION BY NAICS CODE/TRADE CATEGORY. 2) MATCH THE AIRPORT',S AlP TRADE CATEGORY NEEDS AGAINST THE DBE DIRECTORY. 3) IDENTIFY THE CATEGORIES THAT INDICATE "OVER-CONCENTRATION" AND THOSE THAT INDICATE "UNDER-CONCENTRATION". 4) CONDUCT AN OUTREACH EFFORT TO IDENTIFY, RECRUIT AND CERTIFY A MINIMUM OF ONE HUNDRED (100) TOTAL PROFESSIONAL SERVICE, SPECIALTY TRADE AND POTENTIAL DBE PRIME CONTRACTORS. 5) UPDATE THE DBE DIRECTORY PER ITEM (4) ABOVE. DURATION: 8-01-02 THRU 10-31-02 COST: $30,000.00 PHASE II 1) PREPARE A DBE PROGRAM PLAN FOR AUGUSTA REGIONAL AIRPORT IN ACCORDANCE WITH 49 CFR, PART 26 GUIDELINES. , DURATION: 11-01-02 THRU 11-30-02 COST: $9,000.00 2) PREPARE A DBE GOAL SETTING METHODOLOGY AND AN FY 2003 DBE OVERALL DBE GOAL FOR AUGUSTA REGIONAL AIRPORT IN ACCORDANCE WITH 49 CFR, PART 26 GUIDELINES.. DURATION: 11-01-02 THRU 12-13-02 " 't COST: $6,750.00 3) PREPARE A DBE PROGRAM POLICY AND PROCEDURES MANUAL THAT TIES THE DBE PROGRAM WITH THE AIRPORT'S OR COUNTY'S EXISTING PURCHASING GUIDELINES. DURATION: 11-01-02 THRU 03-31-03 COST: $6,000.-00 4) PREPARE A DBE CONCESSIONS PROGRAM FOR AUGUSTA REGIONAL AIRPORT ,PER 49 CFR, PART 23 & 26 GUIDELINES. DURATION: 9-01-02 THRU 11-30-02 COST: $6,000.00 OVERALL PROJECT DURATION: EIGHT MONTHS - NOTE: THE PROJECT SCHEULE WILL BE APPROPRIATELY REVISED UPON RECIEPT OF A NOTICE TO PROCEED. l' PROJECT BUDGET PHASE I PHASE II (1) (2) (3) (4) $30,000 9,000 6,750 6,000 6.000 $57,750 8,000 TRAVEL (8 MOS.) 2,400 SUBCONTRACT ADMINISTRA TJON (8 MOS)* TOTAL FIXED FEE ** 1.792 DUE DILIGENCE $69,942 * This assignment will be performed by Riverview Consultants, Inc under a subcontract from Black & Veatch. Under the terms of the General Advisory Consulting Agreement Black & Veatch has certain subcontract administration requirements for which compensation is necessary. Subcontract Administration includes compensation for time required for subcontractor invoice reviews and verifications, and processing and preparation of documentation and invoicing for the Commission and processing payment to the subcontractoL The compensation is based upon Black & Veatch's estimated number of hour required to administer and process subcontract payments based upon an eight month period of performance. ** Due diligence review and monitoring of subcontractor performance is necessitated by Section 8-Subcontracts in the General Advisory Airport Consulting Agreement. WORK AUTHORIZATION NUMBER FIVE GENERAL ADVISORY AIRPORT CONSULTING SERVICES AUGUSTA REGIONAL AIRPORT T ASK: PREP ARE PRE- ApPLICATION AND ApPLICA nON FOR FEDERAL GRANTS-IN-AID Black & Veatch will prepare grant pre-applications or applications for the following: . Federal A viation Administration terminal site evaluation and verification . Terminal building categorical exclusion from environmental process analysis . Terminal concept plan . Terminal Environmental Assessment Task Output: Completed Federal Aviation Administration Pre-application and Application forms. PROFESSIONAL SERVICES FEE The proposed professional service fee for the services described above is a fixed fee in the amount of $17,280. AGREED TO AND ACCEPTED: , AUGUSTA A VIA nON COMMISSION ~tzr:~7t~ . ~' 7/;0 / rJ ~ I ATTEST: By By Title Title Date Date BLACK & VEATCH ::le~ Date ~ /'- -z-,/O G " _ . 1 WORK AUTHORIZATION NUMBER SIX GENERAL ADVISORY AIRPORT CONSULTING SERVICES AUGUSTA REGIONAL AIRPORT TASK 6.1 COST CENTER REFINEMENT We will review the Airport's existing cost center definitions and will work with Airport . management and the Commission to determine modifications that may be necessary or appropriate to meet the objectives and goals of the Commission for the Airport. We will review the current accounting system output relative to cost centers~ Task Output: A letter report outlining the recommended direct and indirect cost centers with their respective definitions and a recommended basis for allocating indirect costs to the direct cost centers. TASK 6.2 DEVELOP COST CENTER PROFIT AND LOSS STATEMENTS We will identify the data relevant to creation of cost center profit and loss statements. We will assist Airport management in working with the County's accounting systems personnel to establish the necessary accounting protocols to support such cost center profit and loss statements. Task Output: A template for direct cost center profit and loss statements. TASK 6.3 FINANCIAL MODEL We will develop a spreadsheet-based financial model that will permit analysis of the Airport's capital improvement plan and related financing alternatives, and at the Work Authorization - Financial Management, Framework and Airline Relationship Augusta Regional Airport Page 2 appropriate time can be modified to permit analysis of alternative airline rate making methodologies. The model will include: ~ Historical and projected air traffic activity ~ Historical and projected Airport revenues and expenses ~ Capital Program funding requirements ~ Required airline revenue ~ Projected airline rates and charges (at such time as the model is modified to include this feature) ~ Projected Application of Revenues analysis to show the sources and uses of Airport funds. The model will permit "what if' analyses of alternative phasing of capital projects, alternative funding assumptions, alternative growth rate assumptions with respect to air traffic, revenues and expenses. Task Output: Spreadsheet-based financial model TASK 6.4 DEFINE AIRPORT FUND STRUCTURE We will work with the Commission, Airport management and others to determine a suitable fund structure for the Airport. The fund structure will provide for accounting of Airport revenues and the obligations against those revenues. The fund structure will depict and accommodate the degrees of "claim" a given fund has against the Airport revenues. Task Output: A graphical depiction of the recommended Airport Fund structure together with a written statement as to the purpose of each depicted Fund purpose and priority claim against revenues. Work Authorization - Financial Management, Framework and Airline Relationship Augusta Regional Airport Page 3 TASK 6.5 DEVELOPMENT OF AIRLINE RATES AND CHARGES METHODOLOGY We will refine the financial model described previously to permit analysis of alternative airline rate making methodologies in order to determine the particular formula that will accomplish the Commission's goals with respect to: ~ Allocation of financial risk ~ Amount of discretionary cash flow available for funding Airport development ~ Accumulation of surpluses ~ Degree of control over capital investment decisions ~ Degree of control over space reallocations ~ Allocation of indirect costs ~ Incentives to manage the Airport as a commercial enterprise. Financial goals and objectives to be considered in the development of the rate making methodology may (for example) be to:' ~ Provide for full cost recovery ~ Obtain adequate discretionary cash flow ~ Provide for a management incentive fee ~ Provide financial incentives for revenue development ~ Provide a mechanism for Commission-initiated entrepreneurial activities ~ Balance the need for equity among the airlines and avoid penalizing smaller airlines, new entrant airlines, and low air fare airlines. Task Output: A letter report describing the components of the airline rate making methodology as developed in the refined financial model. -. , .... Work Authorization - Financial Management, Framework and Airline Relationship Augusta Regional Airport Page 4 PROFESSIONAL SERVICES FEE The proposed professional services fee for the services described above is presented below. The services would be provided on a fixed fee basis. Nature of Service Financial Management Financial Framework Airline Rates and Charges Methodology Task Numbers 6.1, 6.2, 6.3 6.4 6.5 Professional Services Fixed Fee $57,000 $45,600 $64,700 Total: $167,300 AGREED TO AND ACCEPTED: AUGUSTA A VIA TION COMMISSION y~1f;, 1f~ rt:itle ~ ATTEST: . By Title <f-IOrOd-. Date Date By: Title Date ~/ 7,,~ J IJ z,. , I ,f .,~ 'L-? WORK AUTHORIZATION NUMBER SEVEN GENERAL ADVISORY AIRPORT CONSULTING SERVICES AUGUSTA REGIONAL AIRPORT TASK 7.7 DEVELOP BUSINESS PLAN FOR A VIA TION SERVICES We will develop a business plan for the Aviation Services enterprise of the Airport. The business plan will include the following: ~ Business Goals -- definition of the goals, objectives and entrepreneurial character of the Aviation Services Enterprise for the five-year future ~ Organization Plan - definition of the organizational and resource requirements of the Aviation Services Enterprise ~ Marketing Plan -...:. identification of preliminary marketing issues and strategies ~ Business Development Plan - identification of the elements and information that must be developed to recruit additional customers to the Airport's A viation Services Enterprise activities. ~ Financial Plan - preparation of an Aviation Services Enterprise profit and loss statement. Project activity levels, operating expenses, revenues and net revenues for a five-year projection period. };> Operations and Management Plan - define the Aviation Services Enterprise operating plan (including staffing plan, outsourcing policy, and acceptable level of operating expenses) Task Output: The Aviation Services Enterprise Business Plan will be memorialized in a report to the Commission. ~ ~/ .. ! .- Work Authorization - Property Management Augusta Regional Airport Page 2 PROFESSIONAL SERVICES FEE The proposed professional services fee for the services described above is presented below. The tasks would be completed on a fixed fee basis. Nature of Service Task Numbers Professional Services Fixed Fee Aviation Services Business Plan 7.7 Total $44,000 AGREED TO AND ACCEPTED: AUGUSTA A VIA ~ION CO~~~SION ATTEST: WBY ~ ~,Jf~BY Title c..~ Title Date q I, b I 0 ').. Date BLACK & VEATCH By · . Title Date f /2."1/ b">- (" :~-:;. ~(~ BLACK & VEATCH Airport Management Consulting Group 1855 Gateway Boulevard, Suite 1000 Concord, California 94520 USA Black & Veatch Corporation Tel: (925) 246-8000 Fax: (925) 246-8082 September 6, 2002 Mr, Marcie Wilhelmi Chair Aviation Commission Augusta Regional Airport 1501 Aviation Way Augusta, GA 30906 RE: Professional Services Agreement -- Strategic Planning Workshop Dear Ms. Wilhelmi: Reference is made to an email from Mr. Ken Kraemer advising that the Strategic Planning Workshop should be covered by a separate agreement. Therefore, this letter, when executed on behalf of the Augusta Aviation Commission (Commission); will serve as a binding agreement between Black & Veatch and the Commission concerning the Strategic Planning Workshop. BACKGROUND The Augusta Aviation Commission ("Commission") has engaged Black & Veatch as its general advisory airport management consultant to assist in the redevelopment of the Augusta Regional Airport ("Airport") business enterprise. Specifically, the Commission wishes to create a strategic business plan to provide a framework for Airport operation and development. To initiate this effort, the Commission asked Black & Veatch in May 2002 to conduct a two-day workshop in June 2002 to identify the way forward and assist in establishing priorities. At the time of the request and the subsequent workshop, the Commission had not yet executed the general advisory airport management consulting agreement., Black & Veatch was recently asked to submit a separate letter agreement to retroactively cover services provided related to preparation for and conduct of the two- day workshop which was held on June 28-29,2002. The purpose of this letter agreement is memorialize the services requested and provided and the fee to paid for said services T ASK: WORKSHOP The Black & Veatch Team conducted a two-day workshop in Augusta for members of the Commission and others. The purpose of the workshop was to discuss an early action plan for developing or refining the following key elements of the Airport's business plan: airport development plan, financial planning, property management and revenue' development, organizational development and process reengineering, diversity planning, 1'. '!'~ Mr. Marcie Wilhelmi Augusta Regional Airport September 6, 2002 Page 2 economic development, technology planning, and airport marketing and air service development. To facilitate and guide discussion, Black & Veatch provided a discussion outline. The elements of the business plan were discussed in terms of (1) the Commission's goals for the five-year future, and (2}what actions need to be taken during the one-year future to begin to achieve the five-year goals. It is important for the Airport at this point for the Commission to systematically organize actions and initiatives that are designed to achieve such goals, I The workshop discussions covered (1 )idtimtification of general airport industry practices, (2) establishment of Airport priorities, (3) exploration of alternatives for accomplishing goals, and (4) establishment of appropriate policies and procedures to provide management a framework within which to operate the Airport. The outcome of the workshop was a detailed immediate action plan which identifies specific tasks to be accomplished together with identification of the party responsible (Commission, Airport management, consultant) for completing each identified task. Black & Veatch facilitated the discussion and resulting decision-making process during the workshop. Worksho1J Task Output: Black & Veatch (1) conducted a two-day workshop, (2) prepared a discussion outline for use during the two-day workshop, and (3) documented the immediate action plan resulting from the discussion of the workshop. PROFEssrONAL SERVICES FEE The professional services fixed fee to prepare for and conduct the two-day workshop as described above is $24,765. This fee covers all professional services and any directly related, out-of-pocket expenses incurred duri,?g the course of completing the assignment. * * * * * ~ Airport Management Consulting Group ~ 'J'~"" '. Mr. Marcie Wilhelmi Augusta Regional Airport September 6, 2002 Page 3 This letter will serve as the agreement between Black & Veatch and Commission covering the conduct of a strategic planning workshop, as authorized by the Commission, Please indicate your agreement and acceptance by signing in the space provided on each copy, and return one copy to us for our files. Respectfully submitted, Michael G. Moroney & Associates Michael G. Moroney , Principal AGREED TO AND ACCEPTED: AUGUSTA A VIA TION COMMISSION: ATTEST: ~BY~lt~. , . I ~ Tlt e Date 9/10//07--. ".' By Title Date APPROVED AS TO FORM: By: BLACK & VEATCH CORPORTATION: By, ~ Airport Management Consulting Group