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CITY OF CORTEZ
123 ROGER SMITH AVENUE
CORTEZ, CO 81321

Jeremy Patton
Airport Director
123 East Roger Smith Avenue
Cortez, CO. 81321
jpatton@cortezco.gov

Memorandum

To:

CORTEZ CITY COUNCIL

From:

JEREMY PATTON, AIRPORT DIRECTOR

Date:

8 May 2024

RE:

Letter of Recommendation for the Selection of Airline Service

DISCUSSION

Based on the current contract period being served reliably by Denver Air Connection, their effective business model, numerous interline agreements, and tenure in the industry, we are recommending that they remain the airline provider during our next contract period. The option to request a four or five-year period should be exercised as it allows time to continue building a partnership, as well as reduce turnover. Additionally, this spreads out the subsidy as operators continue requesting higher amounts from the Department of Transportation.

BACKGROUND

The Department of Transportation's Essential Air Service program issued a Request for Proposal (RFP) on March 1, 2024 in consideration of scheduled air service for the next contract period, beginning October 1, 2024, for a two or four-year period. There were two airline proposals submitted; Key Lime Air Corporation dba Denver Air Connection (our current airline), and Advanced Air, LLC. The EAS Community has until May 1, 2024 to review and make comments to the US DOT regarding this RFP. The two airlines were invited to present their proposals in person/virtually to City Council on the 23rd of April 2024. The City of Cortez posted this as a "project" on the transparency website, ClearGov, and received numerous comments, all favoring Denver Air Connection. There were also several emails sent to city staff and the DOT concerning the airline selection, also favoring Denver Air Connection.

FISCAL IMPACT

The operator receives a subsidy from the DOT for operations in Essential Air Service communities. The airport receives revenue from lease agreements and landing fees while the operator is under contract.

RECOMMENDATION

Staff recommends that Council approve the Mayor to sign a Letter of Recommendation for the selection of Denver Air Connection for the next contract period; a four or five-year option, as allowed by the Department of Transportation.

MOTION

If agreed upon by the City Council, a possible motion would be: I move to authorize the Mayor to sign a Letter of Recommendation for the selection of Key Lime Corporation dba Denver Air Connection for the next contract period; a four or five-year option, as allowed by the U.S. Department of Transportation.

Attachments

Letter of Recommendation for Selection

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