Killeen council approves consent items including bank custody services, airport lease and grant application

The Killeen City Council on Jan. 7 approved a slate of consent items that include awarding custody services to US Bank, authorizing steps to pursue a criminal-vehicle grant, and approving a long-term hangar lease at Killeen Regional Airport.

City staff recommended awarding request-for-proposal 24-25-05 for custody services to US Bank at an estimated annual cost of $17,100. Staff said custody services are where a financial institution holds the city’s securities and bond assets; the change followed the city’s earlier depository transition away from PNC Bank. In presenting the item, staff said the city will pay for custody services rather than rely on a “compensated balance” arrangement used previously.

The council also authorized staff to apply for a Motor Vehicle Crime Prevention Authority (MVCPA) grant to expand technology aimed at preventing vehicle and catalytic-converter thefts. Police Chief Lopez told the council the department seeks to use automatic license-plate readers and related camera systems and that the total project funding estimate is $500,000 if awarded — $400,000 from the grant and a $100,000 local cash match. "If awarded, the grant funding will be used to expand the department’s technology capabilities," Lopez said. The chief said grant revenue and related expenditures would be incorporated into the FY budget amendment if the city receives the award.

At the airport, staff presented a negotiated lease with CSI Aviation for a newly completed 13,200-square-foot corporate hangar. Staff said the agreement will generate roughly $106,160 in annual rent revenue for the airport enterprise fund; the lease term presented to council was for six and a half years beginning Feb. 6, 2025. Staff also reported the new hangar will support charter, cargo, medical flight and maintenance activity.

Other consent items approved included rejecting bids for a terminal security upgrade at the airport because the apparent low bid did not meet Buy American/AIP requirements and the other bid exceeded the project budget; authorizing a professional services agreement for water-tank maintenance and asset management (see separate article); and several roadway and planning items brought forward for council approval on the consent docket.

Council approved the consent agenda after removing one condemnation item (RS-25-008) for separate consideration; that item was later considered and approved separately (see separate article).