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TO: Mayor Thomas J. Weisner
FROM: Steve Andras, P.E., Acting Airport Manager
DATE: December 26, 2014
SUBJECT:
A Resolution Authorizing a One-Year Extension to a Direct Aviation Operating Agreement between the City of Aurora and Executive Flight Management (EFM).
PURPOSE:
To obtain City Council approval of an extension for the Direct Aviation Operating Agreement between the City of Aurora and Executive Flight Management.
BACKGROUND:
EFM has operated at the Aurora Municipal Airport since December of 2001. The company manages, operates and repairs corporate aircraft and is a tenant in a large hangar on the field. Their current 2-year operating agreement expires December 31, 2014.
DISCUSSION:
EFM provides aviation services to the airport and to the business community in the Chicago Metropolitan area. They have been responsible tenants on the airfield and consistent with their payments to the City of Aurora. EFM desires to extend their agreement until December 31, 2015.
In 2014 the City of Aurora commissioned a Rate Study by Sikich for the Aurora Municipal Airport. A draft of the study suggests several options to increase the viability of the airport. Only one suggested change would affect a direct aviation operating agreement. This would be an increase in Additional Rent (from 1.5% of gross revenue to possibly 3%).
Due to its short duration, a one-year extension to the EFM direct aviation operating agreement would not result in a significant loss of revenue should the City revise its rate structure.
IMPACT STATEMENT:
The extension of this agreement will have no negative impacts.
RECOMMENDATIONS:
I recommend that the City Council approve a one-year extension of the EFM Direct Aviation Operating Agreement with the City of Aurora.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Mayor and City Clerk to Execute a One-Year Extension of the Direct Aviation Operating Agreement between Executive Flight Management (EFM) and the City of Aurora.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora owns, operates and maintains the Aurora Municipal Airport; and
WHEREAS, pursuant to Resolutions R10-285 and R13-002, the City of Aurora and Executive Flight Management entered into a Direct Aviation Operating Agreement and has authorized and extension of said agreement; and
WHEREAS, under the terms of the agreement between both parties, the extension expires December 31, 2014; and
WHEREAS, Executive Flight Management desires to extend the Agreement in order to continue to conduct business at the Aurora Municipal Airport beyond December 31, 2014.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the City Council of the City of Aurora does hereby approve an extension of the Direct Aviation Operating Agreement between the City of Aurora and Executive Flight Management until December 31, 2015.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
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