HomeMy WebLinkAboutbocc.con.133.2011 Rev. 06 -08 -11 jls
COUNTY CLERK'S
CONTRACT COVERSHEET
/33
CONTRACT #: t-2011
ORIGINATING DEPARTMENT: Airport PROCUREMENT OFFICER: Jim Elwood
PHONE #: 970 - 429 -2851 PROJECT NAME: Air Service Consulting CONTRACTOR: Mead & Hunt
DOLLAR AMOUNT: $49,900 LINE ITEM # 404.67.95704.82000
CONTRACT EXECUTION DATE:5 /12/2011 CONTRACT END DATE: 12/31/2012
AUTOMATIC RENEWAL: EYES TERM: f 1 ENO
❑ BOCC AGENDA ITEM (Grants, IGA) ®STAFF AUTHORIZED SIGNATURE
(Requires BOCC Signature) (Per Revised Procurement Code 7/2005)
❑ Over $50,000 (Requires Section Leader & County Manager's Signature)
✓ CHECK PROCUREMENT TYPE:
❑None ®Informal ❑Formal ❑Sole Source ❑Emergency ❑State Bid ❑
❑Compliance with C.R.S. 8 -17 -5 -101, 102 as amended (Immigration Form)
‘ frelfr
✓ CHECK CONTRACT TYPE:
ZServices/Maintenance ❑Employment (for county employees)
❑License/Use ❑Intergovernmental Agreement (Resolution Required)
['Lease ❑Non - Profit
❑Construction ❑Quasi- Public
❑Goods, Equipment, Supplies ❑Grant Agreements (Notify Finance & Resolution Required)
['Other (e.g. revenue) ❑Change Order /Contract Amendment
All Contracts should be proofed for the following:
✓ ®No Pages Missing ✓ All Other Blanks Filled In
✓
Elf Page Left Intentionally Blank — Note on Page ✓ ®ALI Exhibits Attached
✓ ❑Page numbered consecutively ✓ ❑All Legal Descriptions attached (f applicable)
✓ EAU Original Signatures Affixed ✓ ❑Notice of Award/Notice to Proceed Attached (if applicab,
✓ ®All Dates Filled In ✓ ❑Warranty (if applicable)
✓ ❑Special Instructions for Finance Department:
✓ ®Authorized Procurement Officer's Name: Jim Elwood
BY CHECKING ABOVE AND ENTERING NAME, THE AUTHORIZED STAFF PERSON INDICATES THAT
THE ATTACHED DOCUMENT HAS BEEN PROOFED AND READY FOR SCANNING.
NOTE: CLERK'S OFFICE WILL KEEP ORIGINAL DOCUMENTS IN COMPLIANCE WITH COLORADO STATE
ARCHIVES RETAINAGE SCHEDULE.
Contract # 126 -2011 Rev. 6/8101s
Budget Line Item# 404.67.95704.82000
411 `T-KIN
C OUNT
t € . Nei
CONTRACT FOR PROVISION OF SERVICES
THIS CONTRACT is made and entered by and between the Pitkin County Board of County
Commissioners ( "County ") and Mead& Hunt Inc., 497 Oakway Road, Ste. 220, Eugene, OR 97401
(hereinafter "Contractor ").
1. Term. The term of this contract is from 2/3/2011 to 12/31/2012.
2. Contractor's Obligations. Contractor shall provide all services depicted in the attached
scope of work.
3. Compensation and Expenses, Invoicing, Payment and Offset. The County shall
compensate Contractor for its services in accordance with the Project Budget and Schedule set out
in Paragraph 2. It is expressly understood and agreed that in no event will the total compensation
and reimbursement to be paid hereunder exceed the sum of $49,900 for all services rendered. By
contract or amendment, the County and Contractor may reallocate the budget among project tasks
if the total budget amount remains unchanged. Contractor shall invoice for the project monthly
based on hours worked, with payment expected within thirty (30) days of invoice, but any
payment by the County may be offset by any amount the Contractor owes the County for any
reason.
4. County's Exclusive Ownership of Work Product. Drawings, specifications, guidelines
and other documents prepared by Contractor in connection with this contract shall be the
property of the County. However, Contractor shall have the right to utilize such documents in
the course of its marketing, professional presentations, and for other business purposes.
Contractor assigns to County the copyrights to all work prepared, developed, or created pursuant
to this contract, including the right to: 1) reproduce the work; 2) prepare derivative works; 3)
distribute copies to the public; 4) perform the works publicly; and 5) to display the work
publicly. Contractor shall have right to use materials produced in the course of this contract for
marketing purposes and professional presentations, articles, speeches and other business
purposes.
5. Pitkin County's Obligations. Pitkin County shall administer this contract through a
County Representative. Jim Elwood will manage the project as the County's Representative. In
the event that Jim Elwood is not available, Dave Ulane shall assume the County Representative's
duties. The services provided and products delivered by the Contractor under this contract will
be subject to review by the County's Representatives, or a designee, for compliance with
Contractor's obligations prior to final payment.
1
Contract # 126 -2011 Rev. 6/811 jls
Budget Line Item# 404.67.95704.82000
6. Termination Prior to Expiration of Contract Term. The County has the right to
terminate this contract, with or without cause, by giving written notice to the Contractor of such
termination and specifying the effective date thereof. Such notice shall be given at least ten (10)
days before the effective date of such termination. In such event all finished or unfinished
documents, data, studies and reports prepared by the Contractor pursuant to this contract shall
become the County's property. Contractor shall be entitled to receive compensation in
accordance with the contract for any satisfactory work completed pursuant to the terms of this
contract prior to the date of termination. Not withstanding the above, Contractor shall not be
relieved of liability to the County for damages sustained by the County by virtue of any breach
of the contract by the Contractor.
7. Independent Contractor Status.
A. The parties to this contract intend that the relationship between them contemplated
by the contract is that of independent Contractor. Contractor, and any agent, employee, or servant
of Contractor shall not be deemed to be an employee, agent, or servant of Pitkin County.
B. Contractor is not required to offer his services exclusively to Pitkin County under
this contract. Contractor may choose to work for other individuals or entities during the term of
this contract, provided that the basic services and deliverable products required under this
contract are submitted in the manner and on the schedule defined under this contract.
C. Contractor warrants that all work produced will conform to all applicable industry
standard of care, skill and diligence in the performance of Contractor's obligations under this contract.
D. Contractor shall not attempt to oversee or supervise the work or actions of any
Pitkin County employee, servant or agent in the course of completing work under this contract.
E. Contractor is not entitled to any Workers' Compensation benefits through Pitkin
County and is responsible for payment of any federal, state, FICA and other income taxes.
8 Assignability. This contract is not assignable by either party. Any use of subcontractors
by the Contractor for performance of this contract must be accepted in writing by the County.
9. Binding Arbitration. Any disputes arising out of this contract shall be subject to binding
arbitration. The parties agree that any disputes concerning the terms and conditions of this
contract shall be submitted and finally settled by arbitration. Arbitration shall be conducted
pursuant to the rules of the American Arbitration Association and shall be presided over by the
Pitkin County Hearing Officer appointed to arbitrate Pitkin County contract disputes. Costs of
the arbitration shall be awarded to the substantially prevailing party.
10. Severability. In the event that any provision of this contract shall be held to be invalid or
unenforceable, the remaining provisions of this contract shall remain valid and binding upon the
parties hereto
11. Integration and Modification.
2
Contract # 126 -2011 Rev. 6/811 jls
Budget Line Item# 404.67.95704.82000
A. This contract represents the entire and integrated contract between the County and
the Contractor and supersedes all prior negotiations, representations, or contract, either written or
oral. This contract may be amended only by written contract signed by both the County and the
Contractor.
B. The County may, from time to time, request changes in the scope of services of
the Contractor to be performed hereunder. Such changes, including the increase or decrease in
the amount of the Contractor's compensation, which are mutually agreed upon between the
County and the Contractor, shall be in writing and upon execution shall become part of this
contract.
12. Indemnity.
A. The Contractor agrees to indemnify, hold harmless and, not excluding the County's
right to participate, defend the County, its subsidiary, parent, associated and/or affiliated entities,
successors, or assigns, its elected officials, trustees, employees, agents, volunteers, and any
jurisdiction or agency issuing permits for any work included in the project„ hereinafter referred to as
indemnitee, from all suits and claims, including attorney's fees and cost of litigation, actions, loss,
damage, expense, cost or claims of any character or any nature arising out of the work done in
fulfillment of the terms of this Contract or on account of any act, claim or amount arising or
recovered under workers' compensation law or arising out of the failure of the Contractor to
conform to any statutes, ordinances, regulation, law or court decree. It is agreed that the Contractor
will be responsible for primary loss investigation, defense and judgment costs where this contract of
indemnity applies. In consideration of the award of this contract, the Contractor agrees to waive all
rights of subrogation against the County its subsidiary, parent, associated and/or affiliated entities,
successors, or assigns, its elected officials, trustees, employees, agents, and volunteers for losses
arising from the work performed by the Contractor for the County.
B. The Contractor further shall investigate, process, respond to, adjust, provide defense
for and defend, pay or settle all claims, demands, or lawsuits related hereto at its sole expense and
shall bear all other costs and expenses related thereto, even if the claim, demand or lawsuit is
groundless, false or fraudulent.
13. Insurance. Contractor and subcontractors shall procure and maintain until all
of their obligations have been discharged, including any warranty periods under this Contract are
satisfied, insurance against claims for injury to persons or damage to property which may arise
from or in connection with the performance of the work hereunder by the Contractor, its agents,
representatives, employees or subcontractors.
The insurance requirements herein are minimum requirements for this Contract and in no way
limit the indemnity covenants contained in this Contract.
The County in no way warrants that the minimum limits contained herein are sufficient to protect
the Contractor from liabilities that might arise out of the performance of the work under this
Contract by the Contractor, its agents, representatives, employees, or subcontractors. The
Contractor shall assess its own risks and if it deems appropriate and/or prudent, maintain higher
limits and /or broader coverages. The Contractor is not relieved of any liability or other
3
Contract # 126 -2011 Rev. 6/811 jls
Budget Line Item# 404.67.95704.82000
obligations assumed or pursuant to the Contract by reason of its failure to obtain or maintain
insurance in sufficient amounts, duration, or types.
A. Coverage and Limits of Insurance:
Contractor shall provide coverage with limits of liability not less than those stated below. An
umbrella and /or excess liability policy may be used to meet the minimum liability requirements
provided that the coverage is written on a "following form" basis.
1. Statutory Workers' Compensation: Colorado statutory minimums
a. Policy shall contain a waiver of subrogation against the County.
b. This requirement shall not apply when a contractor or subcontractor is exempt
under Colorado Workers' Compensation Act., AND when such contractor or
subcontractor executes the appropriate sole proprietor waiver form.
Minimum Limits:
Coverage A (Workers' Compensation) Statutory
Coverage B (Employers Liability) $ 500,000
$ 500,000
$ 500,000
2. Commercial General Liability — ISO 1 CG 0001 form or equivalent
(With County named additional insured)
Minimum Limits:
General Aggregate $ 2,000,000
Products /Completed Operations Aggregate $ 2,000,000
Each Occurrence Limit $ 1,000,000
Personal/Advertising Injury $ 1,000,000
Fire Damage (Any One Fire) $ 50,000
Medical Payments (Any One Person) $ 5,000
Coverage to include:
• Premises and Operations
• Explosions, Collapse and Underground Hazards
• Personal / Advertising Injury
• Products / Completed Operations
• Liability assumed under an Insured Contract (including defense costs assumed
under contract)
• Independent Contractors
• Designated Construction Projects(s) General Aggregate Limit, ISO CG 2503
(1997 Edition or equivalent)
4
Contract # 126 -2011 Rev. 6/811 j1s
Budget Line Item# 404.67.95704.82000
• Additional Insured — Owners, Lessees or Contractors Endorsement, ISO Form
2010 (2004 Edition or equivalent)
• Additional Insured — Owners, Lessees or Contractors Endorsement, ISO CG 2037
(2004 Edition or equivalent)
• The policy shall be endorsed to include the following additional insured language
on the Additional Insured Endorsements specified above: "County, its subsidiary,
parent, associated and /or affiliated entities, successors, or assigns, its elected
officials, trustees, employees, agents, and volunteers named as an additional
insured with respect to liability and defense of suits arising out of the activities
performed by, or on behalf of the Contractor, including completed operations ".
3. Auto Liability: Bodily injury and property damage for any owned, hired, and
non -owned vehicles used in the performance of this Contract.
Minimum Limits:
Bodily Injury/Property Damage (Each Accident) S 1,000,000
4. Special Coverages (check as appropriate and insert amount):
❑ (1) Performance Bond $
Labor and Material $
Payment Bond $
❑ (2) Professional Errors and Omissions
❑ (3) Aircraft Liability
❑ (4) Owner's Protective
❑ (5) Builder's Risk
❑ (6) Boiler and Machinery
❑ (7) Loss of Use Insurance
❑ (8) Pollution Liability
❑ (9) Crime, including Employee Dishonesty Coverage, or Fidelity Bond
B. Proof of Insurance:
1. Each insurance policy required by the insurance provisions of this Contract shall
provide the required coverage and shall not be suspended, voided or canceled except after thirty
(30) days prior written notice has been given to the County, except when cancellation is for non-
payment of premium, then ten (10) days prior notice may be given. Such notice shall be sent
directly to (County Representative's Name & Address). If the insurance carrier will not provide
the required notice, the Consultant/Contractor and or its insurance broker shall notify the County
of any cancellation, or reduction in coverage or limits of any insurance within seven (7) days of
receipt of insurers' notification to that effect.
Simultaneously with the Certificates of Insurance, the Contractor shall file with the
Procurement Officer a certified statement as to claims pending against the required coverages,
reserves established on account of such claims, defense costs expended and amounts remaining on
policy limits.
2. In addition, these Certificates of Insurance shall contain the following clauses:
5
Contract # 126-2011 Rev. 6/811 jls
Budget Line Item# 404.67.95704.82000
a. The contractor's insurance shall be primary and non - contributory with any
insurance or self insurance purchased by the County.
b. The insurance companies issuing the policy or policies hereunder shall have
no recourse against the County of Pitkin for payment of any premiums or for
assessments under any form of policy.
c. Any and all deductibles or self insured retentions in the above - described
insurance policies shall be assumed by and be for the amount of, and at the sole
expense of the Contractor.
d. Location of operations shall be: "all operations and locations at which work
for the referenced Project is being done."
3. Certificates of Insurance for all renewal policies shall be delivered to the County's
Representative at least fifteen (15) days prior to a policy's expiration date except for any policy
expiring on the expiration date of this contract or thereafter.
4. The County reserves the right to request and receive a copy of any policy and any
policy endorsement at any time during the term of this contract.
14. Exemptions and Preferences. All purchases of construction or building or any other
materials for this contract shall not include Federal Excise Taxes or Colorado State or local sales
or use taxes. Pitkin County is exempt from such taxes under registration numbers 98 -02624 and
84- 78000 -5K.
15. Records. The Contractor shall maintain comprehensive, complete and accurate books,
records, and documents concerning its performance relating to this contract for a period of three
(3) years after final payment under the contract and the County shall have the right within the three
(3) year period to inspect and audit these books, records and documents, upon demand, in a
reasonable manner and at reasonable times, for the purpose of determining, by accepted accounting
and auditing standards, compliance with all provisions of the contract and applicable law.
16. Contract Made in Colorado. The parties agree that this contract was made in accordance
with the laws of the State of Colorado and shall be so construed. Venue is agreed to be
exclusively in the courts of Pitkin County, Colorado.
17. Attorney's Fees. In the event that legal action is necessary to enforce any of the provisions
of this contract beyond the arbitration described in Paragraph 9, the substantially prevailing party
shall be entitled to its costs and reasonable attorney's fees.
18. Governmental Immunity. Contractor agrees and understands that Pitkin County is
relying on and does not waive, by any provision of this contract, the monetary limitations or
terms (presently $150,000.00 per person and $600,000 per occurrence) or any other rights,
immunities, and protections provided by the Colorado Governmental Immunity Act, 24 -10 -101,
et. Seq., C.R.S., as from time to time amended, or otherwise available to Pitkin County or any of
its officers, agents or employees. Further, nothing in this contract shall be construed or interpreted
to require or provide for indemnification of the Contractor by the County for any injury to any
6
Contract # 126 -2011 Rev. 6/811 jls
Budget Line Item# 404.67.95704.82000
person or any property damage whatsoever which is caused by the negligence or other misconduct
of the County or its agent or employees.
19. Current Year Obligations. The parties acknowledge and agree that any payments
provided for hereunder or requirements for future appropriations shall constitute only currently
budgeted expenditures of Pitkin County. Pitkin County's obligations under this contract are
subject to Pitkin County's annual right to budget and appropriate the sums necessary to provide
the services set forth herein. No provisions of the contract shall constitute a mandatory charge or
requirement in any ensuing fiscal year beyond the then current fiscal year of Pitkin County. No
provision of the contract shall be construed or interpreted as creating a multiple -fiscal year direct
or indirect debt or other financial obligation of Pitkin County within the meaning of any
constitutional or statutory debt limitation. This contract shall not directly or indirectly obligate
Pitkin County to make any payments beyond those appropriated for Pitkin County's then current
fiscal year. No provisions of this contract shall be construed to pledge or create a lien on any
class or source of Pitkin County's moneys, nor shall any provision of this contract restrict the
future issuance of Pitkin County's bonds or any obligations payable from any class or source of
Pitkin County's money.
20. Notice. Any written notice required by this contract shall be deemed delivered through any
of the following: (1) hand delivery to the person at the address below; (2) delivery by facsimile with
confirmation of receipt to the fax number below; or (3) within three (3) days of being sent certified
first class mail, postage prepaid, return receipt requested addressed as follows:
A. To Pitkin County with copies to:
Jim Elwood Pitkin County Attorney's Office
0233 E. Airport Rd. Ste.A 530 E. Main Street, #302
Aspen, Colorado 81611 Aspen, Colorado 81611
Fax: (970)-920-5378 Fax: (970) 920 -5198
B. To Contractor:
Mead & Hunt Inc.
497 Oakway Road. Ste 220
Eugene, Oregon 97401
21. Illegal Aliens — Public Contracts for Services
In conformance with the provisions of C.R.S. § 8 -17.5 -101 and 102, as amended;
1. Contractor shall not knowingly employ or contract with an illegal alien to perform work
under the public contract for services.
2. Contractor shall not enter into a contract with a subcontractor that fails to certify to the
contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to
perform work under the public contract for services.
7
Contract # 126 -2011 Rev. 6/811 jls
Budget Line Item# 404.67.95704.82000
3. Contractor has confirmed the employment eligibility of all employees who are newly
hired for employment to perform work under the public contract for services through
participation in either the E -Verify Program or the Department Program.
4. Contractor shall use either the E- Verify Program or the Department Program procedures
to undertake pre- employment screening of job applicants while the public contract for services is
being performed.
'5. Should Contractor obtain actual knowledge that a subcontractor performing work under
the public contract for services knowingly employs or contracts with an illegal alien, Contractor
shall be required to:
(a) Notify the subcontractor and the County within three days that
the contractor has actual knowledge that the subcontractor is
employing or contracting with an illegal alien;
(b) Terminate the subcontract with the subcontractor if within
three days of receiving the required notice the subcontractor does
not stop employing or contracting with the illegal alien; except that
the contractor shall not terminate the contract with the
subcontractor if the subcontractor provides information to establish
that the subcontractor has not knowingly employed or contracted
with an illegal alien;
6. Contractor shall comply with any reasonable request by the department made in the
course of an investigation that the department is undertaking pursuant to
C.R.S. 8- 17.5- 102(5).
IN WITNESS WHEREOF, the parties have executed this contract as of the date first set out
herein above.
CONTRACTOR: ( S8e /air pae)
By: See attached Proposal and Agreement
Title
Date
BOARD of COUNTY COMMISIONERS OF PITKIN COUNTY, COLORADO:
By: See attached Proposal and Agreement
8
•
a ,,aT
1 UNr
Designing the future
February 3, 2011
Jim Elwood AAE
Airport Director
Aspen - Pitkin County Airport
233 East Airport Road, Suite A
Aspen, CO 81611
Subject: Proposal and Agreement for Air Service Consulting Services
Dear Jim:
Aspen - Pitkin County Airport (ASE) has experienced a loss of air service competition recently. First, US
Airways left the Phoenix market following the 2008 season then, Delta Air Lines indicated in May of last
year that they would not be returning to ASE without an operating subsidy. Though Frontier Airlines
remains in the Aspen market today, they have indicated that they have no aircraft capable of serving the
Aspen market if the remaining Bombardier Q400's are sold. The loss of US Airways, Delta and possibly
Frontier could leave United Airlines as ASE's sole operator providing the only scheduled service to the
market.
The ASE air service market has two primary components, local travelers that reside or work in the region
and the inbound destination travelers that are critical to the local economy. The challenges for the airport
includes meeting the travel needs of these two groups, competing with alternate air service options at
Denver and Vail, and adjusting to the changing airline environment, aircraft types, and aircraft availability.
To counter the possibility of a single carrier serving the Aspen market and improve air service options at
ASE, the Airport is engaged in ongoing air service development efforts with Delta, American and US
Airways. The purpose of the proposed Scope of Services is to:
1. Maintain communications and momentum associated with on -going efforts to add new service to
markets that could be served by Delta, American and US Airways.
2. Complete the research and analysis needed to guide air service development efforts, support
airline proposals, and establish enplanement and retention targets.
3. Make recommendations for a three -year Air Service Strategic Plan for ASE.
Given the intense competition by communities and knowing that competing ski markets provide airline
subsidies, aggressively addressing air service issues is critical in the current environment. With this in
mind, we have compiled a Scope of Services for 2011.
Mead & Hunt Inc. 497 Oakway Road, Suite 220 Eugene, Oregon 97401
541/689 -9997 fax: 541/689 -9998 www.meadhunt.com yn
1
Jim Elwood AAE
February 3, 2011
Page 2
A cost estimate is provided for each service. The suggested range for an annual budget for air service is
$49,900 to $59,800. Please know that we realize that this is a large program for you to consider;
however, in our view it is all "mission critical."
Scope of Services
The following tasks are considered to be of primary importance and necessity in ASE's efforts to retain
and improve air service in 2011/2012. The purpose of the research element (i.e. Passenger Demand
Analysis, Air Travel Survey Review, and Aspen Hospitality Capacity Analysis) is to capture
destination /point of origin, originating airport, and passenger volume information on ASE's local and
inbound travelers. The most difficult part of this task is the collection of solid information on inbound
travelers to Aspen that use alternate airports at Denver or Vail for the air portion of their trips. After
acceptance of this proposal, Mead & Hunt shall complete the following tasks:
1. Passenger Demand Analysis
The Passenger Demand Analysis quantifies by destination the number of air travelers in the market,
including those air travelers that drive to an airport other than ASE to originate the air portion of their trip
and is especially useful for understanding ASE passenger use and service gaps and opportunities. There
is no perfect source of data for passenger diversion information, and consultants differ on the best way to
estimate the size of an air service market. Mead & Hunt addresses this issue by basing passenger
diversion estimates on market and destination data developed from airline booking information (Marketing p.
Information Data Tapes (MIDT)) mathematically combined with U.S. Department of Transportation (DOT)
reported airline information, creating the best possible estimate for your area. By conducting the study in
this manner, our Passenger Demand Analysis provides the background information necessary to
evaluate the strength of the local air service market and to identify opportunities. Mead & Hunt uses this
method for determining passenger diversion because:
(1) It is our judgment that original airline booking information, MIDT, combined with U.S. DOT
airline data is the best method for determining passenger diversion.
(2) The survey sample is significantly larger than other methods used for collecting passenger
diversion information.
(3) MIDT data is accepted and used by most airlines.
Mead & Hunt will obtain MIDT data from the primary Global Distribution Systems (GDS). The ASE
catchment area will be identified by zip code. MIDT data will represent a statistically valid sample of airline
tickets written by travel agents in the airport catchment area. Data collected will include, but is not limited
to, the originating airport, destination, and airline. In addition, Mead & Hunt will use apgDat sources, U.S.
DOT airline report data, travel factors, and demographic data to determine: passenger retention and
diversion by destination, regional distribution of travel, airline use by airport, average airfares, domestic
and international true market estimate (i.e. passenger potential by market), air service gaps and
opportunities, and other market specific information for the local airport. ASE will assist Mead & Hunt with
defining the airport catchment area and provide supplemental assistance as needed with other elements
of this Passenger Demand Analysis.
Jim Elwood AAE
February 3, 2011
Page 3
The output df this effort will be a Passenger Demand Analysis report. Mead & Hunt will provide five bound
copies of the report. Mead & Hunt will provide ASE a draft of the Passenger Demand Analysis within 90
days of the date of the signed contract.
2. Air Travel Survey Review
Mead & Hunt will review available previously conducted travel surveys to determine the value of using
existing surveys to understand inbound air travel. Depending on the outcome of this exercise Mead &
Hunt may recommend the collection of additional travel information via a new survey targeting hospitality
properties in the area.
3. Aspen Hospitality Capacity Analysis
The purpose of this analysis is test the ability of local hospitality properties to accommodate inbound air
travelers. In short, if airlines add new capacity are there enough beds for these visitors. Mead & Hunt will
use existing information provided by local organizations on the number of beds/pillows and seasonal
occupancy rates to determine the market's ability to absorb increased inbound air travelers.
Benchmarking other similar "destination" markets and the level of air service supported will also be
included where information is available.
4. Final Report
r,. The Final Report will be a working paper that summarizes the results of the research phase of the project,
provides an analysis and characterization of the ASE catchment area and its ability to support additional
air service, as well as provide recommendations of options available to ASE on what is realistic and how
to get there. A short-list of hubs and airlines with the potential to serve ASE's air service needs will be
included.
Strategies may include, but are not limited to:
• Recommendations for retaining existing service
• Expanding service with existing carriers
• Targeting new carriers and destinations for further evaluation
• Attending air service development conferences
• Community support for air service initiatives such as an Airline Travel Bank or Small Community
Air Service Development Program.
After completion of the working paper and thorough review for each potential airline, the airlines will be
listed in order of priority matching Aspen's market needs and air service options with the top candidates
identified for a presentation package and proposal meeting.
saw II
Jim Elwood AAE
February 3, 2011
Page 4
5. Air Service Pro Forma
It is recommended that past air service development efforts with Delta, American, and US Airways be re-
visited. An updated economic assessment of each of the airline's top potential markets including air
service pro formas and airline meetings is recommended.
For route forecasting, US Department of Transportation (DOT) airline reports, passenger volumes from
the Passenger Demand Analysis, and airline schedules are used to model passenger connections,
alternate routings, and passenger stimulation to estimate the number of passengers that will use the
target service. This information is then combined with airfares and airline operating costs to arrive at a
profitability forecast. Route forecasts for targeted high - priority markets will be run on an "as needed"
basis.
If an air service opportunity is identified such as Dallas, the first step is to complete a financial
analysis /projection to determine if it is economically viable. Typically, Mead & Hunt completes the
following in the preparation of pro forma analyses:
• Development of a service proposal that is integrated into the carrier's existing service (schedule,
aircraft type, route)
• Detailed analysis and forecast of passengers, load factors, overall average ticket price, average
ticket price by market, revenue, cost, and profit margin associated with the proposed service
improvements
• Analysis of passenger stimulation
• Airline and aircraft specific cost projections (first segment and beyond destinations)
6. Airline Meetings
Visually appealing "business case" presentations will be used in meetings with airlines as part of ongoing
air service development efforts. The structure of the presentation depends on the situation and no two are
alike. Most often full business case presentations are held at airline headquarters. Mead & Hunt will work
to secure relevant airline meetings for ASE to maintain existing service and /or pitch new service
opportunities. Meetings with American and Delta are both high priority.
Mead & Hunt will provide the analysis, preparation, presentation, and consulting services associated with
airline meetings. Airline presentations typically include four components: (1) a concise, dynamic
presentation about the market served by ASE including demographics and economic/business activity;
(2) a description of specific cost and operations information at ASE; (3) existing service performance and
if applicable, the air service pro forma and related financial projections; and (4) the air service incentive
and community support program that ASE may propose to support the service.
The output of this effort will be a PowerPoint presentation. Mead & Hunt will format the entire PowerPoint
presentation. ASE will be responsible for providing Mead & Hunt with information about the community
and community support elements of the presentation. Meeting dates are subject to airline acceptance.
\ V
Jim Elwood AAE
February 3, 2011
Page 5
The ever- changing airline environment may impact potential meeting dates. Once meeting dates are
secured, Mead & Hunt will complete the presentation.
7. Additional Services
Additional services include services not described above that Mead & Hunt performs on an as needed
basis. These services can include requested consulting or recommendations on a specific topic or issue
that may arise outside of the scope of the services listed.
Compensation
Mead & Hunt will be compensated for the work described under Scope of Services as set forth below:
1. Passenger Demand Analysis
Mead & Hunt will be compensated on a lump sum basis and will invoice based on the percent of project
completed.
Passenger Demand Analysis $15,000
2. Air Travel Survey Review
Mead & Hunt will be compensated on a lump sum basis and will invoice based on the percent of project
completed.
Air Travel Survey Review $1,440
3. Aspen Hospitality Capacity Analysis
Mead & Hunt will be compensated on a lump sum basis and will invoice based on the percent of project
completed.
Aspen Hospitality Capacity Analysis $2,880
4. Final Report
Mead & Hunt will be compensated on a lump sum basis and will invoice based on the percent of project
completed.
Final Report $5,160
5. Air service pro forma
Mead & Hunt will be compensated on a lump sum basis and will invoice based on the percent of project
completed.
Air service pro forma $8,000
13
Jim Elwood AAE
February 3, 2011
Page 6
6. Airline Meetings
Mead & Hunt will be compensated on a lump sum basis for each airline presentation preparation and
meeting. Mead & Hunt will invoice for related expenses (e.g. air transportation, lodging, meals, printing,
miscellaneous) at cost plus a 10 percent administrative fee.
Airline presentation preparation $6,480
Presentation /meeting $2,880
Expenses (estimated) $970
Subtotal $10,330
Subsequent airline presentations *:
Airline presentation preparation $3,240
Presentation /meeting $2,880
Expenses (estimated) $970
Subtotal $7,090
2011 estimate (includes two meetings) $17,420
Note: The fee estimate for the preparation of subsequent airline meetings reflects a reduction in effort needed to complete the
presentation if completed within a reasonable timeframe of the first airline presentation. If the schedule for subsequent airline
presentations is delayed by more than 90 days following the first airline presentation, the fee will be adjusted to $6,480.
.ww.0.
Subtotal Scope of Services for 2011 • $49,900
7. Additional Services
Additional services provided by Mead & Hunt not described above or in other supporting documentation
will be billed in accordance with Mead & Hunt's Standard Billing Rate Schedule effective for the
respective calendar year.
The following are Mead & Hunt's Standard Billing Rates for services billed on a time - and - materials basis.
Standard billing rates are subject to annual adjustments in January of each year. Mead & Hunt reserves
the right to change billing rates based on increases in unforeseen operational costs.
Standard Billing Rates
Clerical $71.00 / hour
Accounting/Administrative Assistant $88.00 / hour
Technical Editor $85.00 / hour
Senior Editor $145.00 / hour
Consultant $115.00 /hour
Senior Consultant $180.00 / hour
Principal $200.00 / hour
Expenses
Company or Personal Car Mileage $0.85 / mile
Air and Surface Transportation Cost plus 10% \�
Lodging and Subsistence Cost plus 10%
Out -of- Pocket Direct Job Expenses Cost plus 10%
Jim Elwood AAE
February 3, 2011
Page 7
Authorization
The Scope of Services and Compensation stated in this proposal are valid for a period of thirty (30) days
from date of submission. If acceptance of this proposal is not received during this period, this proposal
may be withdrawn or modified by Mead & Hunt.
Signatures of authorized representatives of ASE and Mead & Hunt shall convert this proposal to a Task
Order to the Contract for Provision of Services dated effective February 7, 2007, between ASE and Mead
& Hunt, Inc.
We appreciate the opportunity to submit this proposal to ASE.
Respectfully submitted,
MEAD & HUNT, Inc.
p ark / Ae:0
Joseph Pickering
Senior Consultant
Accepted by: ASPEN - PITKIN COUNTY Approved by: MEAD & HUNT, INC.
AIRPORT
By " t>) By: a
(wood AAE Thomas M. Schnetzer
Airport Director Vice President
The above person is authorized to sign for Client
and bind the Client to the terms hereof.
Date: Z nnay 1/ Date: February 3, 2011