AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 19-000935
MEETING DATE:	09/10/19
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	John Wayne Airport (Approved)
Department contact person(s):	Barry A. Rondinella (949) 252-5183
	Dave Pfeiffer (949) 252-5291

Subject: Authorize Request for Proposal for Fixed Base Operators

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: 06/25/2019 #45, 05/22/2018 #39, 03/13/2018 #S29D

RECOMMENDED ACTION(S):

Find that the subject activity is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines Section 15378 and is therefore not subject to review under CEQA.

Authorize the Airport Director or designee to issue a Request for Proposal to previously qualified Respondents for Fixed Base Operators at John Wayne Airport.

Direct Airport Director to empanel a qualified group of experts to score the responsive Proposals pursuant to the proposed criteria and return to the Board of Supervisors with recommendations for the selection of up to two Full-Service Fixed Base Operators and one Limited-Service Fixed Base Operator.

SUMMARY:

Authorization to issue a Request for Proposal to nine previously qualified Respondents will allow for the selection of Fixed Base Operators to provide general aviation services at John Wayne Airport.

BACKGROUND INFORMATION:

On March 13, 2018, the Board of Supervisors (Board) approved the traditional land lease financial development model lease for the General Aviation Improvement Plan (GAIP) to allow John Wayne Airport (JWA) to develop a self-sustaining General Aviation (GA) operation. On March 29, 2018, JWA issued a Request for Qualifications for Full- and Limited-Service Fixed Base Operators (FBO) to qualify to participate in the FBO Request for Proposal (RFP) process to manage GA services at JWA. On May 22, 2018, the Board approved a slate of nine qualified Respondents (see table below).

SUBMITTAL	Full-Service FBO	Limited-Service FBO
ACI Jet, dba Aviation Consultants, Inc.	X	N/A
American Aircraft Maintenance, Inc.	N/A	X
Clay Lacy Aviation, Inc.	X	X
Jay’s Aircraft Maintenance, Inc.	N/A	X
Jet Aviation of America, Inc.	X	N/A
Newport FBO Two, LLC, dba Atlantic Aviation	X	X
Orange County Airport Aviation Partners, dba Million Air John Wayne	X	N/A
Ross Aviation Holdings, LLC	X	X
Signature Flight Support Corporation	X	N/A

With the certification of Program Environmental Impact Report 627 and selection of the Proposed Project by the Board on June 25, 2019, the following FBO facilities are being offered in the RFP:

Parcel 1: Northeast Full-Service FBO

Parcel 2: Northwest Full-Service FBO

Parcel 3: Southwest Limited-Service FBO

RFP Scoring

A separate Proposal package must be submitted for each parcel that any Respondent is interested in for managing GA services in response to the RFP. Proposals will be scored using the criteria below, which are more fully described in the RFP. Upon selection by the Board, negotiations will be initiated with the selected Respondents for term, development and phasing. The selected Respondents will only be awarded one parcel each.

Scoring Criteria	Points
Proposed Development, Phasing Plan and Quality of Proposed Facilities.	30
Financial Capability, Resources, Capital Investment, Proposed Term and 10-Year Pro-Forma.	25
Five-Year Business and Management Plan with Development Team Qualifications and Experience.	15
Projected 10-Year Tax Revenue to the County of Orange’s (County) General Fund.	10
Experience with Financing, Constructing and Operating FBOs at Public Use Airports in the Past Five Years.	10
Panel Structured Oral Interview of Respondent (No Presentation Permitted).	10
Total Points	100

Minimum Service Requirements

Respondents will be required to provide the following services:

Full-Service Fixed Base Operator:

· Provide aviation fuel, engine oil and lubricants for sale to GA customers, as well as providing into-plane delivery of fuel;

· Manage hangar storage operations and tie-down facilities;

· Provide aircraft repair and maintenance services;

· Provide and manage transient parking;

· Provide charter operations;

· Manage fueling operations; and

· Provide aircraft wash facilities.

Limited-Service Fixed Base Operator:

· Manage hangar storage operations and tie-down facilities;

· Provide and manage transient parking;

· Provide light aircraft repair and maintenance services;

· Provide an above-ground, self-contained, self-service fueling facility for avgas only; and

· Provide aircraft wash facilities.

Each Proposal will include in the Respondent Form and Questionnaire the proposed hours of operation for both the Fixed Base Operation and General Aviation Facility (as applicable) and whether it plans to accommodate regularly scheduled charter service providers.

Rent

Basic rent shall consist of the Minimum Annual Rent and Additional Rent. The “Minimum Annual Rent” is defined as the sum of Ground and Building Rent. In addition, Respondents agree to pay an amount equal to five percent of all Gross Receipts, as defined and set forth in each of the Leases.

FBO Parcels	Approximate Parcel Area	Annual Ground Rent	Approximate Building Area	Annual Building Rent	Percentage Rent of Gross Receipts
Northeast Full-Service FBO	1,358,299 SF	$1.77 PSF	270,393 SF	$8.16 PSF	5%*
Northwest Full-Service FBO	635,178 SF	$1.77 PSF	99,816 SF	$8.76 PSF	5%*
Southwest Limited-Service FBO	558,313 SF	$1.25 PSF	15,014 SF	$2.53 PSF	5%*

* No percentage rent is payable to JWA on revenue from tie-downs, sunshades or T-hangars (but percentage rent will be payable on revenue from box hangars).

Respondents awarded the Northeast Full-Service FBO (Parcel 1) and Northwest Full-Service FBO (Parcel 2) will operate the existing fuel storage parcel. Both Northeast and Northwest Full-Service FBOs are required to sell and provide into-plane delivery of both Jet A and 100LL fuel. The Limited-Service FBO will be required to provide an above-ground, self-contained, self-service fueling facility for avgas only.

Respondents will be required to submit design, development and phasing plans for their FBO site locations. The development plans must conform with the GAIP Environmental Impact Report, and Respondents must demonstrate an ability to incorporate Envision Gold and CALGreen Tier 1 certification development into their projects.

Each Respondent will be required to submit a signed statement of Acknowledgement and Approval of Model Lease Provisions (Exhibit G within Attachment A) for each Proposal, which acknowledges that they have read and approved the model Lease and take no exception to the language therein. The model Leases are attached to the RFP package. Following the Lease award to the successful Respondent, but prior to the Lease Commencement, the County must receive all items required by the Lease, including the required security deposit and evidence of insurance.

Acceptance of Existing Liability

The leased premises described in the RFP have been used for GA FBO purposes and related activities. The activities include aircraft tie-down areas, fuel storage parcels that include underground fuel storage tanks and underground oil and water separator/clarifiers. Historical assessments identify the presence of environmental constituents both on and off the leased premises associated with the FBOs.

As part of the terms and conditions of the Leases, the selected Respondent firms will be required to agree and acknowledge that they may subject themselves to liability and costs associated with environmental conditions by entering into a proposed Lease. Selected FBOs will be required to indemnify and hold the County harmless both during and after the proposed Lease term for environmental conditions related to the leased premises and will be required to provide the County with environmental liability/pollution insurance coverage.

Land Use Requirements

Upon commencement of demolition of existing facilities, FBOs shall park and store aircraft on the leased premises in strict accordance with the uses depicted on Lease Exhibit C within Attachment A. For purposes of interpreting Lease Exhibit C, the following definitions shall apply:

a.	The green area marked as “SMALL GA” on Lease Exhibit C shall only be used for the parking or storage of aircraft that meet at least one of the following criteria:

The aircraft has a wingspan of less than 49 feet in accordance with Federal Aviation Administration Airplane Design Group I (see Advisory Circular AC 150/5300-13A regarding Airport Design, updated September 28, 2012); or

ii.

The aircraft is a “small aircraft” with a maximum certificated takeoff weight of 12,500 pounds or less in accordance with Title 14 CFR § 1.1.

b.	The yellow area marked as “MIXED USE” may be used for the parking or storage of aircraft of any size.

Property Tax and Tax Revenue

Property tax, regular, special or utility assessments and all tax related to the Premises and the Proposal will be the sole responsibility of the FBOs. Each FBO is responsible for paying any Possessory Interest Tax that may become due for the land and improvements as fully set forth under the Lease. Respondents are required to submit a projected 10-year tax revenue report to the County based on the estimated number and type of based aircraft at the FBO site locations.

Compliance with CEQA: This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA since it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action regarding a project since it furthers an administrative process to secure bids for future projects and does not authorize or commit the County to award any bids received for such future projects. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed for compliance with CEQA.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Fixed Base Operator Request for Proposal
Attachment B - Model Lease - Northeast Full-Service FBO - Parcel (1)
Attachment C - Model Lease - Northwest Full-Service FBO - Parcel (2)
Attachment D - Model Lease - Southwest Limited-Service FBO - Parcel (3)