HomeMy WebLinkAboutRES.1694.08-20-2001 .�, •
BILL NO. 2001-166 RESOLUTION NO. /;.,<j�_�
A RESOLUTION AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AIR SERVICE
DEVELOPMENT SERVICES RETAINER
AGREEMENT WITH KIEHL HENDRICKSON
GROUP, AT THE CAPE GIRARDEAU
REGIONAL AIRPORT
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU,
MISSOURI , AS FOLLOWS :
ARTICLE 1 . The City Manager, for and on behalf of the City
of Cape Girardeau, Missouri , is hereby authorized to execute an
Air Service Development Services Retainer Agreement with Kiehl
Hendrickson Group, at the Cape Girardeau Regional Airport . A
copy of said Agreement is attached to this Resolution and made a
part hereof .
PASSED AND ADOPTED THIS :�'�� DAY OF �� ,,,�� ;� , 20 �1 i
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A. M. Spradling, III , or
ATTEST :
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Gayle !, . Conrad, City Clerk
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�ap� G�ra�d�au l�.egional Ai�part:
AIR SERVICE DEVEL(�FMENT SERVI�ES
R�tainer Agreement
July 2Q01
O1�JE�TIVES:
The objective af this�Agreement is provid�ongoing air service deveiapment and sugport to the Cage
Girardeau Regional Airpart,as well as the flexihility to utilize pro�essional resourees whenever required.
Goals include:
• Attracting additional commereial airline service
� Generating higher volumes of passenger traffic
• Manitoring and attracting equitable fare levels from all carriers
• Monitoring and supporting incumbent airline services
� Advisin�CGI and the community on related air service and airline industry issues
• Fraviding regular and ongoing updates of airtine perfarmance measurements and eomgetitive
airport co�nparisons
MET�I4�QLQGY:
Kiehl Hendri�kson Group(KHG)will conduct all necessary and apprapriate analyses of the Cape
Girardeau,Missouri comgvsite area, speci�eally identifying opportunitie�to profitably serve the Cape
Girardeau Regzonal Airport,as well as ongving studies to evaluate air serviee development aptic�ns. The
primary sources ot'data will be those origi�ating from the U.S.Department of Transportation and
apprapriate dacuments�rovided by the Cape Girardeau Regional Airport.
Due tQ oecasional reporting errQrs,normal and approgriate correetions may be rnade to the data. Kiehl
Hendrickson Graup makes na warranty as ta the aecuraey or completeness of the data,and nQ
responsibility�s assumed fQr any loss or damage caused to any person Qr entity as a result of tl�e use of
analyses provided.
DELIVERA�LES:
To meet the objectives and maintain ongoin�suppart,several key components are prQuided:
ProduetiService Timin
I) Air Service Campaign • C�ne provided per 12 month period
2) FarelPricing Analysis • Weekly updates and comparisans
3} Advisary Services • Ongoing services,allowing for:
- Ad hoe reseaxch
- Support/incentive�subsidy programs
- Follaw-up dialogue and FYT's with
� airline planners
KIEHL HENDRICKSON GROUP •AYIATION PLANNING&ANALYSIS
TWO/�PPLETREE SQUARE • SUITE 438• MINNEAPOLIS, MN 55425 •TEL: 952/853-0070• Fax: 952/853-0077
INTERNET: WWW.KHGROUP.COM .
CAPE GIRAR�EAU REGIQNAL AIRPQRT-Page Z .
1�ELI��RA�LES - CQntinued
KHG witl provide,in presentation quality and farmat where appropriate, final documentation of
ec�nclusions and recommendations with respect to each component. Further details f�llow:
1) Airline�ervice Campaigns
Progosals for new serviee will be prese�ted to airline planning e�ecutives, ic�entifying key attributes of
this target marleet regican and specific apportuniti�s to introduee new service. Air service anatyses often
require severa�elements,inciudi�g those listed t�elaw.
• Historieal traffie, fare,rev�nue,and capacity trends
• Market share details by earner and/or airport within the relevant region
• Compaxison to sirnilar cities/airporEs
• Gatchment area airline passenger traffic assumptions and Gomparisons
• Speci�e market assumptions,including pricing, share shifts,diversian, stimulation, growth
• �oreaasts of traffic and revenues,including local and airline network eontributions
• Route financial projections,includzrtg aircraft-specific casts for proposed new services
• Break ev�n sensitivities and sumrnaries
• Updates of traffic,r�venue,prafit foreeasts as appropriate
2) Fare/Pricing Analysis(Weekly Updates)
Passenger traffic is frequently lost to a cornpeting airport due to priee discrepancies. T€�effeetively
monitor airline pricing,this serviee includes the following:
� Lowest one way pul�lished airline fares
• Lowest round trip published airline fares
• Fares are tracked TO a total of ten(1Q)destznations(airport selec�ion)
• Fares are tracked FRQM CGI and two peer airports(also l�y selection)
� Side-by-side comgarisons,includin�airline and fare code infoz�ma�ion,will be f�ed dire�tly to
your affiees on a weekly basis
3) Ongaing Advisory Services
Designed to offer ongoing support with respect to airline or air service issues,I�.HG offers assistance in
such topics as reviewing airline proposals, outlining eommunity relatians materials,and maintaining
dialogues with airlin�planners regarding market changes and opgortunities.
CAPE GTRARI�EAU REGIQNAL AIRPQRT—Fage�
TIME FRAI�IE:
KHG wiil provide th�services and deliverables out�ined aba�ve over the cvurse vf twelve(12)cale�dar
manths fallo�ving t�e signing date of this Agreement.
The scheduling af airline presez�tations and visits will be coordinated hetween Cape Girard�au Regianal
Airport and I�HG,and every effort will be made to aecQmmodate schedule demands. Monthly and
quarterly reporks and analyses will be provided on a reasonable tinne frame,allowing far aGcess and
availability of key data saurces.
This groposal is valid until September 1,20QI.
RETATNER FEES:
AI.L serviees will be provided,as described abave, far the montl�iy fee af$ 1,375,plus payment of
$2,SU0 due u�an signing af this contra�t for a grand tQtal of$19,Q00.
Travel related exp�nses,copying,and materials preparation: To Be Reimbursed
Monthly fees wzli eon�inue for the twelve(12)month duration of this Agre�ment; invoice amounts are
due within 30 days of receipt. Late paym�nts acerue int�r�st at 1°�o per rnQnth.
FRQJECT`A�REEIYIENT:
If the aforementioned is acceptable,please signify your agreement by sigr�ing below.
Upon e�cecution this dacurnent shall became binding.
�. . ` ._--C E GIltARUEAU I{.IEHT.HENDRICKSQN GRC}UP
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