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AGENDA ITEM SUMMARY
REGULAR MEETINGDATE:
JUNE 10, 2009
AGENDA ITEM TITLE
:An OrdinanceApprovingExecution of Signatory Airline
Lease and UseAgreements-FIRST READ
STAFF RESPONSIBLE:
David Ulane, Assistant Aviation Director
Steven Schultz,Properties Administrator
ISSUESTATEMENT
:Implementation of new standard Airline Lease and Use Agreements
with the commercial airlines thatoperate at the Aspen/Pitkin County Airport
BACKGROUND
:Since 2006,whenSkyWest Airlinesacquired Air Wisconsin’sterminal
space, all airlinesincluding Frontier Airlineshave been operating under month to month
terms of previous airline agreements. While these month to month leases were reviewed
regularly, they were left in place because staff had other priorities and thearrangements were
workingwell. However the current complexityof and changes to relationships between
regional airlines and their major airline partners necessitates the execution of new signatory
airline lease and use agreements.Thetable below illustrates the airlineand leasehold/landing
feearrangementscurrently in place at our airport, which will be formalized in these new
agreements:
Major AirlineAspen Operator(s)Lease Held By:Rent Paid By:Landing Fee Paid By:
United AirlinesSkyWestSkyWestSkyWestSkyWest
MesaSkyWestSkyWestMesa
Delta AirlinesSkyWestSkyWestSkyWestSkyWest
Frontier AirlinesLynx AviationLynxFrontierFrontier
In late 2008, staff began working with the Assistant County Attorney and our outside
aviation legal counsel, Dan Reimer of Kaplan Kirsch and Rockwell, to develop a revised
standard Airline Use Agreement, which are largely based on the previous agreements, with
updates to current legal and regulatory citations andlanguage. These agreements, which
have been reviewed and concurred with by our current airlines (SkyWest and Frontier),will
have a five year term, and be identical between air carriers(with theexception of leasehold
descriptions). The five year term consists ofa one year initial term and up to four one year
automatic renewals provided all lease terms are met and payments are current.Under these
agreements, rates and charges will continued to be evaluated and established annually with
BOCC approval.
Due to its length, the Standard Airline Lease and Use Agreement is not attached, but is on
file with the Clerk’s Office.
1
LINK TO STRATEGIC PLAN:
None-administrative only.
KEY DISCUSSION ITEMS:
Execution of Airline Lease and Use Agreements
BUDGETARY IMPACT:
Currently budgeted airline terminal rent and landing fee
revenue. No cost impact of lease execution.
RECOMMENDED BOCC ACTION:
Staff recommends approval on first read of the
attached ordinanceauthorizing execution of standardAirline Lease and Use agreements
with current scheduledair carrier operators.
ATTACHMENTS:
Ordinance
2
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO APPROVING EXECUTION OF SIGNATORY
AIRLINE LEASE AND USE AGREEMENTS
Ordinance No. ____-2009
Recitals
WHEREAS
1.,SkyWest Airlines, Inc., and Frontier Airlines, Inc. are currently leasing
terminal space and providing scheduled airline service at the Aspen/Pitkin County
Airport under month-to-month terms of expired Signatory Airline Lease and Use
Agreements (“Agreements”);
WHEREAS
2.,new Agreements need to be executed and implemented with SkyWest and
Frontier to accurately reflect current airline operations and leaseholders;
NOW, THEREFORE, BE IT ORDAINED
by the Board of County
Commissioners of Pitkin County, that it hereby authorizes the Director of Aviationto execute
Standard Signatory Airline Use and Lease Agreements with the Airport’s existing air carriers, as
well as any new or changed air carrier qualified to operate at the Airport under the terms of the
Agreement.
This ordinance, and the Agreement shall be available for public inspection during normal
business hours in the office of the Pitkin County Clerk and Recorder, Pitkin County Courthouse
Annex, 530 E. Main St., Aspen, Colorado 81611, and the office of the Director of Aviation, 0233
E. Airport Rd., Suite A, Aspen, CO 81611
INTRODUCED, FIRST READ AND SET FOR PUBLIC HEARING ON JUNE 10, 2009.
NOTICE OF PUBLIC HEARING PUBLISHED IN THE ASPEN TIMES WEEKLY ON JUNE
14, 2009.
ADOPTED AFTER FINAL READING AND PUBLIC HEARING ON JUNE 24, 2009.
PUBLISHED BY TITLE AND SHORT SUMMARY AFTER ADOPTION, IN THE ASPEN
TIMES ON JUNE 28, 2009.
ATTEST:BOARD OF COMUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO
____________________________By:_________________________________
Jeanette Jones,Patti Kay-Clapper,
Deputy Clerk and RecorderChair
________________________________________________________________
DateDate
APPROVED AS TO FORM:MANAGER APPROVAL:
________________________________________________________________
John Ely, County AttorneyHilary Fletcher, County Manager