CITY OF EL PASO DE ROBLES
"The Pass of the Oaks"
Airport Ad Hoc Committee Meeting Addendum
Thursday, April 18, 2024, 2:00 PM
Library/Conference Center Council Chamber
1000 Spring Street
Paso Robles, CA 93446
Members of the public are welcome to attend in person. As a reminder, Ad hoc committees consist of 1 or 2 members of the City Council who are appointed by the City Council to perform specific tasks, usually working with staff or representatives from local organizations. An ad hoc committee functions for a limited period of time, reporting back to the full Council periodically during the duration of the committee or at its termination.
AMERICANS WITH DISABILITIES ACT Any individual, who because of a disability needs special assistance to attend or participate in this meeting, may request assistance by contacting the City Clerk’s Office (805) 237- 3960. Whenever possible, requests should be made four (4) working days in advance of the meeting.
Pages
E. DISCUSSION
*1. Comparison of FBO Proposals and Financials Presentation 2 - 26 Robert Trimborn, Senior Consultant, (AMCG)
Airport /Ad Hoc Committee Meeting April 18, 2024
April 16, 2024
Fixed Base Operator
Proposal Review
City of El Paso de Robles
Paso Robles MunicipalAirport
Airport /Ad Hoc Committee Meeting April 18, 2024
9085 East Mineral Circle | Suite 315 | Centennial, Colorado | 80112-3499 | 303.792.2700 | www.aviationmanagement.com April 16, 2024
Mark Scandalis
Airport Manager
Paso Robles Municipal Airport
4912 Wing Way
Paso Robles, California 93446
RE: Fixed Base Operator: Proposal Submittal Review
Dear Mark:
This report conveys Aviation Management Consulting Group’s (AMCG’s) review and analysis of proposals submitted by ACI Jet and Loyd’s Aviation in response to a Request for Proposals published by the City of El Paso de Robles (City). The City requested proposals from qualified and experienced entities interested in leasing land and improvements at the Paso Robles Municipal Airport (Airport) to manage, operate, and market a fixed base operation (FBO) at the Airport.
AMCG is pleased to have been called on to conduct this assessment and provide the associated recommendations. Please contact me if you have any questions pertaining to the findings or opinions conveyed in this report.
Helping your aviation management excellence,
Robert Trimborn
Senior Aviation Consultant
Aviation Management Consulting Group
Airport /Ad Hoc Committee Meeting April 18, 2024
TABLE OF CONTENTS
FBO Proposal Review i
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) I. INTRODUCTION ..................................................................................................... 2 A. Scope of Work................................................................................................. 2 B. Background..................................................................................................... 2 C. Project Approach............................................................................................. 3 II. SYNOPSIS.............................................................................................................. 4 III. APPENDIX.............................................................................................................. 6 A. Cover Letter .................................................................................................... 6 B. Executive Summary ........................................................................................ 7 C. Qualifications and Experience......................................................................... 9 D. Management Plan......................................................................................... 11 E. Operational Plan ........................................................................................... 13 F. Marketing Plan .............................................................................................. 15 G. Financial Plan ................................................................................................ 17 H. Development Plan ......................................................................................... 18 I. Additional Information ................................................................................... 20 J. Financial Compensation ................................................................................ 21 K. Analysis and Conclusions from Staff Report ................................................. 23
1. Loyd’s Aviation ...................................................................................... 23
2. ACI Jet .................................................................................................. 23
Airport /Ad Hoc Committee Meeting April 18, 2024
INTRODUCTION
FBO Proposal Review 2
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) I. INTRODUCTION
A. Scope of Work
This report conveys Aviation Management Consulting Group’s (AMCG’s) review and analysis of proposals submitted by ACI Jet and Loyd’s Aviation in response to a request for proposals (RFP) published by the City of El Paso de Robles (City) on April 14, 2023.
The City requested proposals from qualified and experienced entities interested in leasing land and improvements at the Paso Robles Municipal Airport (Airport) to operate and market fixed base operator (FBO) facilities at the Airport.
AMCG was requested by the City to conduct a financial analysis of the proposals and compare proposed services, operation, marketing, and capital improvements.
AMCG was not requested to rank the proposals or provide an opinion as to which entity should be chosen by the City.
B. Background
On April 14, 2023, the City published the FBO RFP in conformance with standard City protocols. On May 8, 2023, a site visit for potential proposers was held. Proposers could submit clarifying questions until May 18, 2023. Two addendums to the RFP were issued in response to written questions from proposers. Proposals were received up until the June 29, 2023 submission deadline. The City received proposals from. Both proposals were determined to be responsive and met the submittal criteria outlined in the RFP. City staff reviewed confidential financial statements from both proposers, including three-year profit/loss statements, statements of financial capacity, and proof of insurance. Both were deemed financially capable of providing the required services and developing proposed improvements.
Subsequently a proposal review committee was established by the City to evaluate and rank the proposals based on criteria established in the RFP. The evaluation committee was made up of nine members including two Airport Commissioners, two Airport stakeholders, San Mateo County Assistant Airport Manager and City staff. Out of a possible 110 points, Loyd's Aviation scored 91.1 points and ACI Jet scored 86.8 points.
The proposal review committee preferred Loyd’s Aviation’s proposal by a vote of 5 to 4.
Both entities were invited for an in-person presentation and interview. The City formed a seven-member interview committee that included two Airport Commissioners, two Airport stakeholders, San Luis Obispo Country Director of Airports, Salinas Airport Manager, and Paso Robles Airport Manager. After thoughtful deliberation, the interview committee preferred Loyd’s Aviation by a vote of 4 to 3. Airport staff indicated that the committee’s preference for Loyd’s was based on the positive impression of their customer service, culture fit with Paso Robles, attentiveness to general aviation operations, and consistency with the offerings detailed in the RFP.
Airport /Ad Hoc Committee Meeting April 18, 2024
INTRODUCTION
FBO Proposal Review 3
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) The interview committee recommended that the City negotiate with both proposers in an effort to attain the best overall operator and agreement for the City. On December 19, 2023, Airport staff presented the results of the RFP process to the Paso Robles City Council and Airport Commission during a special meeting. Following the presentation of the staff report, testimony from the public, and deliberation by Councilmembers, the City Council unanimously voted to direct staff to create an Ad Hoc Committee comprised of Councilmember Gregory, Councilmember Roden, Airport Commissioner Andros, and Chairperson Cook; and to direct staff to continue to work with the two proposers to gather additional information and fiscal analysis before the ad hoc committee meets.
Subsequently, City staff requested the proposers to submit additional information related to their RFP submittals (see attached letter dated December 27, 2023). The additional information was due on or before January 31, 2024. Both entities provided the additional material in a timely manner. The proposers were advised that upon receipt of the additional documentation, City staff would review and analyze the materials prior to convening the Ad Hoc Committee. Once the Ad Hoc Committee is convened, it is possible that additional information may be required or that the entities further clarify aspects of their proposals.
C. Project Approach
To achieve the scope of work, AMCG completed the following work plan:
1. Reviewed the April 14, 2023 FBO RFP
2. Reviewed two City issued addendums to the RFP in response to written questions from proposers
3. Reviewed and analyzed proposals submitted by ACI Jet and Loyd’s Aviation
4. Reviewed the December 19, 2023 staff report entitled “Municipal Airport Full Service Fixed Based Operator (FBO) Request for Proposals – Direction on Future Negotiations”
5. Reviewed the recording of the December 19, 2023 Joint Meeting of the City Council and Airport Commission and related minutes
6. Reviewed December 27, 2023 letter to RFP proposers requesting additional information
7. Reviewed and analyzed the additional information submitted by ACI Jet and Loyd’s Aviation
8. Conducted a financial analysis of the proposals and compared proposed services, operation, marketing, and capital improvements for consideration by the Ad Hoc Committee
Airport /Ad Hoc Committee Meeting April 18, 2024
SYNOPSIS FBO Proposal Review
4 City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) II. SYNOPSIS Loyd’s Aviation ACI Jet Overview 65 years of aviation experience. 1 location (BFL) 25 years of aviation experience. Incumbent FBO – 10+ years at PRB. 5 locations (SBP, PRB, SNA, L52, VNY) Proposed Services Fuel Services, Ground Handling, Customer Accommodations, Aircraft Sales, Aircraft Charter, Aircraft Maintenance Fuel Services, Ground Handling, Customer Accommodations, Aircraft Maintenance Operation Monday - Friday 6:00am-6:00pm Saturday and Sunday 7:00am-6:00pm After hours on call with seasonal and holiday adjustments 1 on-site supervisor, 1 Customer Service Representative (CSR) 4-5 Line Service Technicians (LSTs) March to November - 7:00am and 7:30pm daily December to February - 7:00am and 6:30pm daily After hours on call 4 full-time hybrid staff - Aircraft Ground Support Technicians/Hospitality Experience agents providing parking/fueling and concierge services plus 1 dedicated Hospitality & Experience agent assigned to PRB Marketing Conservatively increasing hangar space, without flooding the market, will help to increase the activity and sales on the field without driving hangar prices below profitability. Holds a minority stake of a company held by Freeman Holdings Group (FHG) providing ACI a network of locations and companies to communicate its offerings and leverage existing relationships to locate and engage opportunities for additional business. Proposed Lease Term Proposes an initial 5-year lease with a contingency that a new lease term will begin upon the commencement of construction for the Executive FBO facility. At that point, a new term of 30 years, with two 5-year options is proposed in conjunction with Phase I. Will accept 5-year lease with no development as set forth in RFP. If proposed development plan is accepted by City, a new lease term will begin upon the commencement of constructing Phase 1 improvements. At that point, a new term of 40 years is proposed. Capital Improvements Phase 1 development utilizing the areas identified in RFP to construct a two-story addition to the existing terminal building. Phase 2 development utilizing 3.2 acre to construct hangar development project located west of the fuel farm consisting of 11- 60’x60’ hangars and 8 T-hangars (or box hangars) designed for small aircraft. Phase II constructed “on-demand” approach. Phase 1 = $3,043,400 beginning in Year 6 Phase 2 = Up to $5,951,600 if all hangars constructed Phase 1 development to (1) expand main terminal with two-story addition, (2) refresh interior and exterior with paint, carpet, lighting, and fixtures as appropriate, and (3) renovate all existing public-use space in main terminal including bathrooms at no cost to the City. Construct a new 150’x120’ (18,000sf) executive hangar with 28’ high doors. Construct new ground support equipment (GSE) maintenance facility and new vehicle parking areas. Phase 2 development includes mixed-use community hangar to commence upon securing funding and anchor tenants. Phase 1 = $5,982,365 upon new 40-year term Spaceport Support Fully support spaceport operations through FBO services offered. The specifics of how the operations may work were not identified. Spaceport support operations would mirror existing turbine aircraft support. Resources and experience include but are not limited to: advanced calibrated technical equipment, experience with regulatory processes and agencies, and large capacity fuel trucks.
Airport /Ad Hoc Committee Meeting April 18, 2024
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 6
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) III. APPENDIX
A. Cover Letter
Additional Comments:
Loyd’s Aviation and ACI Jet both fully complied with the criteria requested in the Cover Letter.
The Cover Letter must identify the legal name and business trade name (if different from the legal name) of the proposing entity or entities as well as the Proposer’s primary office location and contact information. The Proposal shall be signed by a representative authorized to make commitments and/or enter into agreements on behalf of the Proposer along with the representative’s contact information. The signed RFP Addenda Acknowledgement Form shall be included acknowledging receipt all addenda.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 7
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) B. Executive Summary
Loyd’s Aviation ACI Jet
Qualifications
and
Experience
More than 65 years of aviation
experience into this proposal, including
Fuel Operations and Handling, Hangar
Storage and Construction, Aircraft
Maintenance, Corporate Aircraft
Management and Aircraft Charter
Business Aircraft Handling – 25+ years
Military Aircraft Handling – 20+ years
Airport Property Management – 20+
years
Airport Construction Management – 20+
years
Airline & Scheduled Part 135 Support –
20+ years
Firebase Aircraft Handling – 12+ years
Aircraft Charter and Management – 23+
years
Aircraft Maintenance – 20+ years
Understanding
of Objectives
“In preparation for this proposal, Loyd’s
Aviation has made itself familiar with
the operation of KPRB, the Request for
Proposal (RFP), and Airport
publications. Further, Loyd’s Aviation
understands the objectives of the City
as they relate to KPRB and as stated in
the RFP.”
Referenced Airport’s 2013 Business
Improvement Plan and City’s 2018
Economic Land Use Plan.
The Executive Summary must summarize the key elements of the proposal in a clear and concise manner including, but not necessarily limited to, the following:
Qualifications and experience of the Proposer as it relates specifically to the aeronautical activities proposed including a summary of the products, services, and facilities currently being provided by the Proposer at other airports; Proposer's understanding of the objectives of the City as it relates specifically to the opportunity and the products, services, and facilities proposed to be provided at the Airport;
Summary of the compensation (rents, fees, and other charges) proposed to be paid to the City;
If applicable, a summary of the capital investment in the Subject Property and other improvements to be made (including justification of need) as well as the cost of proposed improvements, amortization period, source of funding, and the schedule for development and completion;
Overview of the aircraft, vehicles, and equipment to be deployed at the Airport; and Statement explaining why the Proposer is the best selection.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 8
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Summary of
Compensation
to be paid
Executive Air Center Offices (FBO
Dedicated) $4.44 psf/yr. Executive Air
Center Storage Hangar (FBO
Dedicated) $7.80 psf/yr.
Restaurant Area of the Airport
Terminal $16.80 psf/yr. Dedicated FBO
Office Space (Terminal) $12.00 psf/yr.
Jet Fuel $0.12 per gallon
Avgas $0.10 per gallon
Fuel Facilities Development (all fuels)
$0.03 per gallon or as otherwise stated
in the most recently adopted
Comprehensive Fee Schedule.
Parking/Overweight Fees per the
current Adopted Comprehensive Fee
Schedule as applicable with a
negotiated split between City and FBO.
Presented Fuel Flowage Fee (Jet-A and
Avgas), Land & Building Rents and Fuel
Storage Rents.
Ranges from $254,659 in Year 1 to
$282,706 in Year 5 including rents and
fees.
Summary of
Capital
Investment
Proposing 2 capital investment
phases:
1st – addition to existing terminal
2 nd - hangar development project
located on the vacant land identified in
the RFP and located directly west of
the fuel farm
Proposed development plan capital
investment is $5,982,365. This is
contingent upon the lease of
additional spaces identified in Section
2.2 of the RFP that are not part of the
“Dedicated FBO” spaces.
Requesting 5 year term with option of
adding the proposed development at
Council’s discretion
Overview of
aircraft,
vehicles, and
equipment to
be deployed
2 Jet-A fuel truck
1 Avgas fuel truck
1 GPU
1 Lavatory Service Cart
1 Tug
4 fuel trucks (3 Jet-A, 1 AVGAS),
3 aircraft tugs
2 ground-power units (GPU)
1 turbine air starter
1 lavatory cart
1 water cart
1 tower for de-icing
1 follow-me cart
1 crew car
1 pickup truck
Statement
explaining why
Proposer is
best selection
Because Kern County is so
agriculturally centered, many of our
customers are both economically and
socially connected to Paso Robles.
Paso Robles makes a perfect cultural
fit with our values, our clientele, and
our team.
ACI Jet has been auditioning for this
RFP for the last 10+ years and has
delivered on all promises and
commitments in its short-term lease. We
are an active supporter of the Paso
Robles community with additional
resources nearby in SLO to provide
synergy and a quick-response capability
that no other applicant can match.
Additional Comments:
Both respondents have operational experience, skills, and an understanding of the City’s objectives and knowledge of the market to operate a successful FBO at the Airport. ACI Jet’s development plan includes renovation of all existing public-use space in the main terminal while Loyd’s Aviation does not propose any renovations to existing public-use space. The equipment proposed by ACI Jet appears directed towards handling jet aircraft as compared to Loyd’s Aviation.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 9
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) C. Qualifications and Experience
Loyd’s Aviation ACI Jet
Commercial
Aeronautical
Activities
Experience
Fuel and Line Services – Certified
Stage III under IS-BAH, all LSTs
NATA Safety 1st Trained and
certified
Aircraft Maintenance Services –
Lloyd’s Aircraft Maintenance in
operations since 1986. CFR Part
145 Repair Station Certificate.
Cessna and Piper Aircraft
Authorized Repair Station
FAA 14 CFR Part 135 Air Carrier
(Charter) Certificate
Business Aircraft Handling = 25+
Military Aircraft Handling = 20+
Airport Property Management = 20+
Airport Construction Management =
20+
Airlines & Scheduled Part 135 Support
= 19+
Fixed Base Aircraft Handling = 12+
Aircraft Charter & Management = 23+
Aircraft Maintenance = 20+
Biographies of
Management Team
Members
Resumes of 5 individuals provided. Biographies of 8 individuals provided.
Identification of
Airport Property
Leased
Currently leases approximately 25
acres of property from the County of
Kern at KBFL on a new 30-year
lease signed in 2022.
5 locations included
The Qualifications and Experience section will provide a thorough description of the Proposer’s qualifications and experience in the commercial aeronautical activities proposed at the Airport, including, but not limited to:
Number of years engaged in the planning, development, operation, management, and/or marketing of commercial aeronautical activities; Biography of each member of the management team including industry experience (with resumes included as an attachment to the Proposal); Identification of all airport property (by type and location of the property – airport, city, and state – and the history of the property) leased by the Proposer; Identification of all aviation businesses (by name and location of the business – airport, city, and state – and the type and history of the business) owned and/or operated by the Proposer;
Provide the names of up to five airports (and contact information) where the Proposer has leased airport property and engaged in commercial aeronautical activities within the last five years; and
Three business references, three customer references, and two financial references (including contact telephone number and email for each).
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 10
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Identification of
Aviation
Businesses Owned
and Operated
Today, Loyd’s Aviation operates
Bakersfield Jet Center, a FullService FBO at Meadows Field, as well as a Flight Department,
Parts Sales department, hangar
rentals and a maintenance
business, Loyd’s Aircraft
Maintenance.
Aviation businesses at SBP, PRB, L52,
VNY and SNA identified
Airports and
Contact
Information
Meadows Field, Bakersfield,
California.
SBP – Courtney Johnson, Director of
Airports
PRB – Mark Scandalis, Airport
Manager
SNA – Charlene Reynolds, Airport
Director
L52 – Courtney Johnson, Director of
Airports
VNY – Casey Pullman, GM, Castle &
Cooke (FBO)
Business
References
Curt Castagna, President/CEO,
Aeroplex Group Partners
Joe Gregory – President, Grapevine
MSP
Ben Laverty IV – COO, California
Safety Training
Craig Stoller – Co-Owner, Sextant
Wines
Matt Daglish, VP Flight Operations,
Wonderful Aviation
Brian Maxted, CEO, Holloway
Group
Janet Hepp, SVP Loans, TriCounties Bank
Mark Haynes, VP Sales - Avfuel
Mark Haynes – VP Sales, Avfuel
Jim Coleman, VP, Avsurance
Christy Hasty, President, Jetspeed
Chuong Nguyen, Customer, Air
Methods
John Couch, Customer, Estrella
Warbirds
Matt Daglish, Customer, Wonderful
Aviation
Jeannie Hill, Financial Reference,
Centennial Bank
Matrice Mosby, Relations Manager,
Wells Fargo
Additional Comments:
Both respondents have the qualifications and experience necessary to operate a successful FBO at the Airport and each individual of the respective management teams are well experienced with FBO operations. All business references included seem to be from industry leaders, however, it is important to note that Mark Haynes, VP Sales Avfuel, is listed as a reference for both respondents. As this individual is familiar with both respondents, AMCG recommends contacting Mark Haynes as his input would be valuable.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 11
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) D. Management Plan
Loyd’s Aviation ACI Jet
Mission, Vision
and Values
Mission – The mission of Loyd’s
Aviation is to maintain the highest
level of safety and customer service
in the aviation industry
Vision – The vision of Loyd’s
Aviation is to be a leader in defining
a premier aviation company that will
foster a rewarding, nurturing, and
challenging work environment.
Values – Safety, Customer Service,
Integrity
Mission -To help people, businesses
and communities reach their full
aviation potential.
Vision - ACI will be the premier
Bombardier Maintenance & Parts
provider on the West Coast while
serving as a bespoke aircraft operator
that is well known for its distinctive
FBOs and depth of connections and
resources
through its Freeman Holdings Group
(FHG) family.
Vales - Integrity, Safety, Perseverance
and Service
Organizational
Chart
Corporate organizational chart
includes 6 individuals in leadership
positions and additional 5 Line
Service Technicians and 1
Customer Service Representative.
Corporate organizational chart of 13
individuals listed. Of individuals listed,
VP of FBOs & Facilities, General
Manager, Aircraft Ground Support
Supervisor and Hospitality &
Experience Manager are shown to be
dedicated to the proposed PRB
operation.
Roles of Principals
and General
Manager
General Manager – Oversees
accounting for all Loyd’s Aviation
businesses, oversees FBO
operations, plans capital
expenditures, and provides
mentorship for the Line Service
Manager.
As the General Manager of ACI Jet,
Paso Robles, Luke Newlon is
responsible for the daily operations,
personnel management, and the
overall performance of the FBO. His
oversight of the growth and
development of the FBO in Paso
Robles includes strategic planning,
identifying growth opportunities,
liaising with the various branches of
the Military, and maintaining financial
responsibility for daily
operations.
The proposal must address the following:
Statements of Proposer’s mission, vision, and values;
Chart depicting the Proposer’s organizational structure; Description of the roles and responsibilities of the Proposer’s principals and on-site general manager;
Anticipated staffing levels and hours of operation;
Description of the training and quality assurance programs to be implemented; and Approach and timeframe initiating operation and approach for use of exclusive areas.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 12
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Staffing Levels and
Hours of Operation
It is anticipated that a staff of four
full-time positions and 2-3 part-time
positions will be required to meet
the requirements of the RFP. That
will include one On-Site Supervisor,
one Customer Service
Representative (CSR) and 4-5 Line
Service Technicians (LSTs)
Monday – Friday 6:00am-6:00pm
Saturday and Sunday 6:00am6:00pm
4 full-time Aircraft Ground Support
Technicians which can increase from
supplementing from the San Luis
Obispo location. 10 hospitality and
experience agents.
7:00am-7:30pm March – Nov.
7:00am – 6:30pm Dec. – Feb.
Customer service is available over the
phone 24/7, answered by staff seven
days a week between
6:00am and 9:00pm. From 9:00pm to
6:00am, phones are answered by a
third-party service that routes
calls to on-call staff.
Training and
Quality Assurance
Programs
Specific training for Line Service
personnel through use of the online
NATA Safety 1st program, in
addition to the in-house training
program which includes equipment
specific training Jet Fuel QC, a
program that records and tracks all
Quality Assurance (QA) test
The training plan incorporates
elements of employee onboarding,
initial safety training, Paso Robles
Airport training requirements,
classroom/web-based instruction, fuel
safety modules developed by ACI Jet’s
aviation fuel supplier (Avfuel),internally
developed training modules for jobspecific duties, and practical applications.
Approach and
timeframe of
initiating operation
and approach for
use of exclusive
areas
Phase 1 – Ramp Up (90 day after
notification of successful proposal)
Phase 2 – Launch Operations
Phase 3 – FBO Construction
Phase 4 – Hangar Construction
Prepared to continue providing
services and support to all airport
users on November 1, 2023 with no
interruption to existing services.
Additional Comments:
Staffing levels and hours of operation listed by both respondents appear to be adequate to fulfill the needs of the FBO.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 13
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) E. Operational Plan
Loyd’s Aviation ACI Jet
Proposed
Products and
Services
Fuel services, maintenance
services, ground handling, luggage
service, ground transportation
services, hotel accommodations,
aircraft sales, aircraft charter, crew
and passenger amenities.
FBO Services, maintenance services,
charter & management services,
Equipment Cost
Estimates
The total estimated capital cost for
the main pieces of equipment is
$875,000.00.
The total estimated capital cost for the
main pieces of equipment is
$1,274,000 based on the below:
5K Jet-A fuel truck - $217,000
5K Jet-A fuel truck - $217,000
3K Jet-A fuel truck - $125,000
1K 100LL fuel truck - $100,000
Lektro 8800 Tug - $115,000
Lektro 8600 - $80,000
Gas Tug - $55,000
28-Volt DC GPU - $96,000
400Hz AC/DC GPU $110,000
Turbine Air Start - $75,000
Lavatory Cart - $8,000
Water Cart - $5,000
Tower De-Icing - $18,500
Follow-Me Cart - $500
Crew Car - $30,000
Pickup Truck - $22,000
The proposal must address the following:
Description of the proposed products and services including type, range, level, and quality as well as hours of operation;
Overview of the cost estimates for the vehicles, equipment, and aircraft to be deployed at the Airport;
Description of the policies and procedures to ensure the anticipated products and services will be provided in a safe, secure, efficient, prompt, and professional manner; Evidence of all licenses, permits, and operating certificates required by any governmental agency;
Proposed types and limits of insurance to be obtained specifically related to the opportunity;
Evidence of any established or anticipated industry standard Safety Management System (SMS); and
Security plan.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 14
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Policies and
procedures for
offering products
and services
Line Service Policies and
Procedures are contained within
Loyd’s Aviation’s Employee Policies
and Procedures Manual (EPPM).
Additionally, a Spill Prevention
Control and Countermeasures plan
(SPCC), Safety Management
System (SMS), and an Emergency
Response Plan (ERP) contain
information used to supplement the
EPPM.
Jet Fuel QC used for fuel quality,
aircraft fueling safety and ATA 103
compliance.
X-1 FBO management platform
utilized.
Evidence of
licenses and
permits
Copies of licenses and permits
provided as exhibits
Copies of licenses and permits
provided in attachment
Types and limits of
insurance
Evidence of current and proposed
coverage of $10 million provided in
attachment.
Evidence of current and proposed
coverage of $250 million provided in
attachment.
SMS Plan Includes Safety Policy Statement,
flight risk assessment tools, root
cause analysis, SMS portal through
FltSafety.com and monthly safety
meetings.
Established SQMS in 2010 and
provides preemptive risk analysis to
proactively prevent issues. Certified to
the highest third-party auditing
standards of SMS performance.
Security Plan Loyd’s Aviation’s current security
plans and practices are heavily
driven by TSA and 14 CFR Part
139 airport requirements, most of
which do not apply to KPRB. A
revised plan will be made to
accommodate the uncontrolled
airport environment.
Pre-employment background checks,
security training once employed. 24/7
security cameras.
Additional Comments:
AMCG acknowledges that Loyd’s Aviation identifying $10 million of insurance coverage may not be adequate, especially when handling certain jet aircraft and spaceport operations.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 15
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) F. Marketing Plan
Loyd’s Aviation ACI Jet
Proposer’s target
markets and
analysis for
demand capacity
Given the current environment,
Loyd’s Aviation sees the most
growth potential in small
corporate aircraft for KPRB.
Private aircraft of all types including
small and larger corporate aircraft
Marketing
strategies
It has been our experience that
targeted, individual marketing
based on relationship building
works the best.
Transient traffic marketing will
consist of aviation specific ad
campaigns on platforms such as
fltplan.com, Foreflight, Garmin Pilot,
etc. Loyd’s Aviation will also
represent KPRB at regionally
appropriate industry trade shows,
such as NBAA’s events and offer
fuel reward programs to attract
aircraft looking for fuel stops
ACI Jet’s foundational market strategy
is to maintain its reputation as a highquality company that routinely “delivers on its promises” in a safe and
responsible manner.
Pricing strategies
for products,
services and
facilities
Loyd’s Aviation’s pricing strategy
has always been, and will continue
to be, one of moderation. It is not
the intention to be the cheapest
option and compete solely based on
price, nor is it the intention to gouge
customers to gain every margin
dollar possible. A fair price to allow
for fair wages and fair profits,
topped off with exceptional service
will be the strategy.
General description of fair and
transparent pricing.
The proposal must address the following:
A description of the Proposer’s target markets including size, composition, trends and future outlook as well as an analysis of the demand and capacity at the Airport for the activities proposed;
Marketing strategies utilized to reach the target market; Description of the Proposer’s pricing strategies for all products, services, and facilities; Overview of the Proposer’s experience championing issues that have resulted in growth and development of aviation businesses and airport activity; Proposed marketing budget; and
Overall value to the aviation community.
Providing letter(s) of support from existing or prospective customers for the Proposer’s operation at the Airport is desirable.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 16
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Experience
championing
issues
Loyd’s Aviation has always been
involved in the larger aviation
community, including seats on
boards and committees for trade
associations NATA, NBAA and
AOPA.
President Ryan Cowl serves at Cice
Chair of the Airport Business
Committee for NATA and member
of Aerospace Advisory Board for
the Prescott, AZ campus of ERAU.
Referenced ACI Jet – Cuesta College
– SLO County Partnership.
In-kind grant commitment of $500,000
to establish the region’s first Part 147
maintenance technician program to
train certified aircraft technicians
(“A&Ps”) for local aerospace
businesses. Founding member of
Regional Economic Action Coalition.
Individual contributions of members of
the executive and management team.
Proposed
marketing budget
Loyd’s Aviation will spend an
estimated $20,000 per year to
promote KPRB and will continue to
advocate for the industry as a
whole.
Anticipate a total marketing spend for
entire company in excess of $500,000
Overall value to
aviation
community
Not provided Focusing on Mission “To help people,
businesses and communities reach
their full aviation potential” not only
enables to do what is right for intrinsic
reasons but is a solid long-term
business strategy, yielding the best
results for both the company and the
communities it serves
Letters of Support Letters from following:
Tri Counties Bank
Chubb Federal Insurance Company
Letters from following:
Cuesta College
REACH
California Polytechnic State University
Air Methods Corporation
Helicomm Avionics
Estrella Warbirds Museum
Additional Comments:
None.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 17
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) G. Financial Plan
Loyd’s Aviation ACI Jet
Statement of
financial capacity
Referenced letters from TriCounties Bank and Chubb Federal Insurance Company.
Says provided in Confidential
Information Packet – unable to
confirm.
Three-year
historical income
statement
Provided but redacted. Unable to
review.
Says provided in Confidential
Information Packet – unable to
confirm.
Identification of
rents, fees and
other charges
proposed to be
paid
Executive Air Center Offices - $4.44
psf/yr
Hangar - $7.80 psf/yr
Restaurant Area of Terminal -
$16.80 psf/yr
FBO Office Space Terminal -
$12.00 psf/yr
Jet fuel - $0.12 per gallon
Avgas - $0.10 per gallon
Fuel facilities development - $0.03
psf/yr
Apron – no rental rate identified
Parking Fees – per the adopted
comprehensive fee schedule with
negotiated split between City (85%)
and Loyd’s (15%).
Executive Air Center Offices - $4.80
psf/yr (land/building)
Hangar - $4.80 psf/yr (land/building)
Restaurant Area of Terminal –
$4.80 psf/yr (land/building)
FBO Office Space Terminal –
$4.80 psf/yr (land/building)
Jet fuel – not identified
Avgas – not identified
Fuel facilities development – $0.24 per
gallon per year
Apron – $0.60 psf/yr
Parking Fees – proposed a fee
schedule different from City adopted
comprehensive fee schedule with
negotiated split between City (20%)
and FBO (80%).
Total Land Rent - $59,462
Total Building Space Rent - $96,617
Total Fuel Storage Rent - $7,680
Proof of insurance
of evidence of
ability to obtain
Insurance Certificate from ACORD
provided.
Insurance Certificate from STARR
Insurance Companies provided.
Additional Comments:
AMCG is unable to opine on the financial strength of Loyd’s Aviation and ACI Jet due to their financial statements being confidential.
The proposal must address the following:
Statement of financial capacity from a qualified financial institution or other source easily verified by the City that identifies the sources and the funds available to provide working capital to initiate the proposed activities and make any proposed capital investment;
Three-year historical income (profit and loss) statement Identification of rents, fees, and other charges proposed to be paid to the City; and Proof of insurance or evidence of ability to obtain required insurance.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 18
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) H. Development Plan
Loyd’s Aviation ACI Jet
Preliminary site
and floor plan
Development plan includes two
major conceptual improvements to
the Airport. First is an addition to
the existing Airport Terminal to
provide an executive FBO space.
The second improvement includes
the development of a hangar
complex located on the vacant lot
west of the fuel farm identified in the
RFP
Site plan and floor plans provided.
development to occur in 2 phases.
Description of
preliminary
specifications
5,200sf addition to terminal
The hangar development will
include up to 11 individual corporate
hangars of approximately 3,600
square feet each, and an additional
series of small “T” hangars (or box
hangars) designed for small aircraft.
Expansion of main terminal.
Construction of 18,000 sf executive
hangar with line office and GSE facility
and new parking areas.
Phase 2 is not defined in detail but
includes two separate 36,000sf
executive hangar with adjacent shop
for Helicomm Avionics, 40,000sf of
new ramp space, relocated fuel farm
and aerospace educational facilities.
The proposal must address the following:
Preliminary site plan and floor plan which may include a rendering of the proposed improvements;
Description of and preliminary specifications for the proposed improvements by major component;
Cost estimate of proposed improvements by major component, source of funds, and the contribution expected, if any, from the City or others; Schedule for design, site preparation (demolition), development, and completion of the proposed improvements by major component;
Evidence of the ability to obtain a bond from a bonding company or irrevocable letter of credit from a federally regulated bank that guarantees the timely, full, and faithful performance of the Proposer’s construction obligations in the amount equal to the cost of the proposed improvements; and
Identification of the proposed amortization period for the proposed improvements.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 19
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Cost estimate of
proposed
improvements
Executive FBO - $3,043,400
Hangar Development (total build) -
$5,951,600
Phase 1 - $3,043,400
Phase 2 - $5,951,600 on-demand
Construction estimate - $4,838,491
A/E Fees - $500,000
Geo Tech - $7,000
Furniture - $125,000
Artwork - $20,000
Equipment Package - $20,000
AV - $15,000
Radio Communications - $12,000
IT/Security - $85,000
Exterior + CSR Signage - $75,000
Contingency $284,874
Phase 1 - $5,982,365
Schedule Phase 1 FBO construction will be
12-18 months.
Phase 2 hangar development to
occur after FBO construction and
will be constructed in phases based
on demand. The first hangars are
expected to take 12-18 months to
complete depending on steel
availability.
2023 – Lease Negotiated
2024-2025 – Design & Permitting
2026 – Phase 1 Construction
2027 – Open
Evidence of ability
to obtain a bond or
irrevocable letter
of credit
Letters provided by Chubb Federal
Insurance Company
Says provided in Confidential
Information Packet – unable to
confirm.
Proposed
amortization
period
The amortization period for the
construction will be up to 24 years.
Loyd’s proposes an initial 5 year
lease with a contingency that a new
lease term will begin upon the
commencement of construction for
the Executive FBO. At that point, a
new term of 30 years, with two 5-
year options will begin.
ACI Jet would initially amortize any
financed portion of its improvements
over a period of twenty (20) years with
respect to the loan amortization, but
proposes that the negotiated lease
term be set at 40 years.
Additional Comments:
It is important to note that ACI Jet’s Initial development plan was contingent upon ACI Jet being able to lease approximately 250,000 square feet that was not included in the development area of the RFP.
Loyd’s proposed Phase 2 hangar development project will require extensive infrastructure improvements to the 3.2 acre parcel (grading, paving, utilities, etc.) prior to the construction of hangars. The cost and timing of infrastructure improvements and proposed rental rate to the City for the use of the parcel was not clearly defined in their proposal.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 20
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) I. Additional Information
Loyd’s Aviation ACI Jet
Additional
Information
N/A Relationship with Freeman Holdings
Group network of 20+ FBOs
Partner with Cuesta College on its
Aviation Maintenance Technician
Program.
The terminal will achieve its full and
intended potential with reduced costs
for the Airport (cleaning and
maintenance largely privatized).
Founding member of Regional
Economic Action Coalition (REACH)
Close ties with Cal Poly Aerospace
Department.
10 Year Record of Keeping Promises
Additional Comments:
None.
Proposer may include additional information considered useful in helping the City evaluate the qualifications and experience of the Proposer.
Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX FBO Proposal Review 21 City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) J. Financial Compensation Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX FBO Proposal Review 22 City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) Airport /Ad Hoc Committee Meeting April 18, 2024
APPENDIX
FBO Proposal Review 23
City of El Paso de Robles, Paso Robles Municipal Airport (04/16/2024) K. Analysis and Conclusions from Staff Report
In addition to evaluating each respondent’s financial strength, compensation to be received and development plan proposed, AMCG believes that the quality of each proposal should also be considered.
1. Loyd’s Aviation
a) Leasing the existing facility offerings detailed in the RFP; b) An expansion of the Airport Terminal building to the south including a two-story executive FBO building, a customer service desk, a flight planning area, a pilot’s lounge, a passenger lounge, and three additional restrooms;
c) On-site car rental services;
d) A phased development (two to three hangars at a time) of 19 additional small to mid-size hangars on the 3.2 acre development area;
e) An initial 5-year term with an option to extend long term upon completion of the Airport Terminal expansion;
f) A negotiated split 85%-City/15%-Loyd’s on aircraft parking fees with rates set by the City Council per the adopted comprehensive fee schedule with no annual apron rental rate; g) Loyd’s Aviation would start their own maintenance shop with local, existing personnel.
2. ACI Jet
a) Leasing the existing facility offerings detailed in the RFP; b) An expansion of the Airport Terminal to the south including a two-story executive FBO building, customer service desk, a flight planning area, a pilot lounge, a passenger lounge, and the remodeling of the existing restroom facility rather than the addition of new restrooms in the Airport Terminal expansion;
c) One 18,000 SF corporate jet hangar and a development concept for the 3.2 acre offered parcel. ACI Jet proposed a 40-year term on all areas except the 3.2-acre parcel of which they proposed a 10-year term with a 30-year first right of refusal on the parcel if they did not develop the area within the initial 10-year term.
d) Included as part of, and contingent on, the ACI Jet proposal was the long-term lease of an additional, approximately 250,000 square feet (“SF”) of ramp area not identified by the City to be leased by the prospective FBO. This additional ramp area fronts the Airport Terminal and includes all premium ramp space at the Airport: the Terminal Ramp, Transient Ramp, the Heliport, and the Terminal Overflow Ramp. e) To address the aircraft maintenance obligations of the RFP, ACI Jet proposed a subcontract with a local maintenance provider for general aviation maintenance with support for turbine and Jet aircraft out of their repair station in San Luis Obispo. f) A negotiated split 20%-City/80%-ACI Jet on aircraft parking fees with new proposed rate schedule different from rates set by the City Council per the adopted comprehensive fee schedule plus apron rental rate of $0.60 psf/yr.
Airport /Ad Hoc Committee Meeting April 18, 2024