Council Decides to In-Source Addison Airport Operations and Maintenance

Addison Airport has been managed and operated by a third-party operator since the Town purchased the airport in 1976. In January 2000, a contract with Washington/Staubach Addison Airport Joint Venture was executed for the management of the real estate portfolio and the operations and maintenance of the airport.

That contract was renegotiated in 2006 and new, separate contracts were executed for the real estate and operations and maintenance functions. The contract for real estate services at the airport expires on September 30, 2020. The contract for airport operations and maintenance expires on September 30, 2022. 

At the January 28 meeting, Town Staff recommended to Council that the revenue collection and accounting functions of the airport be in-sourced to the Town under the auspices of the Finance Department. Bringing this function into the Town will provide greater oversight of the collection and disbursement of airport revenue, full access to the Town’s financial system, oversight by the Town Chief Financial Officer, and alignment with the Town’s standard financial policies and practices.

Staff also recommended that the operations and maintenance functions of the airport be in-sourced to the Town as well. This will provide greater control over staffing and more closely follows the standard U.S. airport industry management practice. Staff recommended making this change effective October 1, 2020, which requires the early termination of the current operations and maintenance contract and an early termination fee of $42,500 that will be paid from the Airport Fund. Current airport staff will be extended offers to become Town of Addison employees and continue to serve in their current capacities.

On January 14, 2020, the Council approved a contract with Landrum & Brown, Inc., for consulting services related to the renegotiation of the contract for real estate services. That action included Staff’s recommendation to continue the provision of real estate services through a third-party contract. 

You can watch the Council's Airport discussion here and read the presentation here.