(Pocatello For Accountable Government Entities, December 12, 2022)

The Pocatello City Council will be considering a 2023 Skywest (subsidy) Airport Transportation Services Agreement at the 12/15/22 meeting.

AGENDA ITEM#7: AIRPORT TRANSPORTATION SERVICES AGREEMENT
Per the PDF packet:
“The airport is seeking approval of a revenue guarantee for SkyWest Airlines for calendar year 2023 air service up to a maximum amount of $1,010,000 as well as approval of the first quarter transportation agreement between the City and Skywest under which SkyWest will schedule one daily Delta Connection-branded round-trip flight on the CRJ-200 between PIH and SLC and the City will pay a subsidy to SkyWest for the service, if costs exceed revenue up to a maximum of $346,459 for the quarter as well as waived rent and landing fees for the same period.”
Note: This agreement is only for the first quarter. The Airport is also seeking approval to give the Mayor authority to sign subsequent quarterly agreements for the remainder of 2023.
“If there are any significant changes to the subsequent agreements, OTHER THAN maximum quarterly subsidy amount, the agreement will be brought to Council for review and approval.”
The subsidy will be funded using TAX FUNDS already budgeted (not for this expense specifically) with stimulus grant funding to be used to cover the operational budget. The approval will also include (if required) the use of additional airport reserve funds (as needed) for operational costs which would have to be ratified in the future through budget amendments
This agenda item does not include any verbiage regarding the projected 4th quarter 2022 Skywest subsidy costs or how that will be paid should the 4th quarter invoice exceed the remaining balance from the $800K allotted for 2022.

NOTE: The draft agreement was not posted as part of the Agenda packet. The up to $346, 459 per quarter X 4 = $1,385,836. It is not certain at this time whether that is the maximum for the 1st quarter only or just until the $1,010,000 is expended. Technically, the 4th quarter of 2023 is within the FY24 budget.

Note: To see the entire post and attached documentation, click here.

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