Staff recommends that the City Council approve and award the sole source contract to Vector Airport Systems, LLC. for their PLANEPASS automated aircraft landing fee billing and collections. Research has been conducted, by contacting other companies and airports that have issued Requests for Proposals (RFP) for this service and at this time, Vector Airport Systems is the only company that provides these services.

The Airport has a system in place for collecting airline landing fees. Billings Airport does not have an adequate and fair system for collecting from general aviation and Part 135 aircraft landing fees. Montana House Bill 571 restricts collections to aircraft with gross weights of more than 9000 pounds and does not authorize collections for small training aircraft or other smaller aircraft owners. Bozeman, Missoula, Glacier Park, Helena, and Livingston Airports are already using this system to collect landing fees. Most airports in the USA are using Vector's system to record and collect landing fees.

The Billings Airport has a verifiable system to collect airline landing fees, but not one for general aviation and charter aircraft. In FY2025 Vector estimated an annual non-airline landing fee total of $189,325, and the 80% revenue share to Billings Airport would have been $151,460, which is a significant addition to Airport revenues. The current collection system works on an honor system, staff verification, billing, and collection by our staff. Many aircraft operators are unaware of the billing system and do not pay. There are also resource constraints for our staff to record, bill and collect for landing fees. Landing fees are critical to keeping the airport running, to build parking infrastructure, pay the match for FAA grants, training, and to meet staff payroll requirements. The airport is an enterprise fund and must generate its own income to meet expenses. Vector's PLANEPASS can record all landings using the Automated Dependent Surveillance-Broadcast (ADSB) or a camera system; their staff then do all the billing and collection for the landing aircraft. The compensation to Vector is 20% of the collected proceeds.

In FY2025 it is estimated that the airport lost $189,325 in opportunities for non-airline landing fees. If Vector's PLANEPASS had been in place, Vector would have been paid $37,865 to complete billings and collections from start to finish, leaving $151,460 in revenues to fund the airport. The Airport does not have adequate Full-Time Equivalents (FTE) to make up the cost difference of $37,865 and Vector's PLANEPASS system would free up staff for increased productivity. Revenue generation is critical for all airports as they all run as an enterprise fund that must pay for their operations, improvements, and air service development.

The City Council may:

• Approve the award for the PLANEPASS Landing Fees Management Contract; or,
• Decline to approve the award, and provide further direction.