Title
Aviation Financial Feasibility Consultant Services Contract Amendment
Action
Action:
A. Approve contract amendment #2 for $550,000 to the contract with Newton and Associates, Inc. (SBE) for financial feasibility services, and
B. Authorize the City Manager to amend the contract for up to two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract and this amendment were approved.
Body
Staff Resource(s):
Haley Gentry, Aviation
Mike Hill, Aviation
Matthew Hastedt, Finance
Explanation
§ Aviation requires a qualified consultant to provide an independent comprehensive economic study as required in accordance with public debt financing. The consultant will assess the financial feasibility of the projects financed in the Airport’s Capital Investment Plan.
§ The analysis requires detailed knowledge of the financial operations of the Airport, the Airport industry, and the overall bond market. Newton and Associates, Inc. performs this service for airports across the country and has extensive knowledge and experience at the Charlotte Douglas International Airport to effectively provide the analysis.
§ On April 20, 2023, following a Request for Proposals process, the city entered into a contract with Newton and Associates, Inc. for $250,000 for Aviation financial feasibility consulting services.
- Amendment #1 in the amount of $245,000 was to increase the contract value to continue financial consulting services.
- Amendment #2 in the amount of $550,000 will cover the independent assessments for the next two bond issuances.
§ The estimated value of an independent assessment is approximately $275,000. This assessment is only required during an airport public debt financing (approximately every two years).
§ The new total value of the contract including contract amendment #3 is $1,045,000.
Charlotte Business INClusion
Newton & Associates, Inc. is an SBE certified firm. All additional work involved in this amendment will be performed by Newton & Associates, Inc.
Fiscal Note
Funding: Proceeds from Aviation General Airport Revenue Bonds