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A RESOLf7TION OF THE BOARD OF
.s COUNTY COMMISSIONERS OF PITKIN COUNTX, COLORADO,
SETTING AIRLINE FEES AND CHARGES FOR 1991 "
Resolution # 91-� -
WHEREAS, Pitkin County owns and sponsors the Aspen/Pitkin �
County Airport (Sardy Field); and p
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WHEREAS, the County has authority, pursuant to, inter alia, : .
1973 C.R.S. 41-4-101 et seq., as amended, and the Pitkin County �
Code, Title IV, Airpo�t Regulations, to regulate the use of the
Airport and to set, charge, collect and enforce rates, fees, and
charges £or the use thereof; and
�_;,i WHEREAS, the County adopted Resolution #87-56A, its amended �
�' Airport rate-setting policy, on November 24, 1988; and
- ��`� WHEREAS, the County entered into a Letter of Intent with !
.=".a United Expres5 and Continental Express airlines in October and =
��'Y� November of 1989, which along with the provisions of holdover Use '
� � and Lease Agreements, dated September 14, 1981, not inconsistent ,
+'�2 with the Letter of Intent constitute the legally-enforceable
relationship between the County and the airlines; and
i
WHEREAS, the Letter of Intent provides that airline rates
,�� and charges "be calculated on a residual basis ... annually to
;�t::. ; produce or to recover the greater of: the annual coverage of 1.5
times debt service costs; or the sum of the following net costs
�-b� of the airport:"
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' "a. net operating expenses ...
� � b. net non-operating revenuejexpense ...
c. debt service costs ... '�
,�;;';� d, capital outlays approved .."; and
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�''' WHEREAS, the Letter of Intent provides that airline rent may
�"' � be increased annually on January 1 and airline landing fees may
,;,�� be adjusted semiannually on January 1 and July 1 so that the
;�. Airport breaks even on the residual basis described above; and
��'� WHEREAS, the 1991 budget for the Airport was reviewed in
public session on October 22, 1990, and again on November 12th,
;,::� and a public hearing was held thereon on December 4, with final
� �-.;� adoption on December 18, 1990; and
�!;:y WHEREAS, at the time of adoption of the 1991 budget there
� was uncertainty as to if, when and £or how long the FAA would � _
� mandate an increase in security at the Airport in response Co a '
'�`� potential Gulf war, and consequently the cost of such a security �.
' increase was not included in the initial 1991 budget; and
�y'"� ai line rent was administratively increased by 6.3�
WHEREAS, r
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to $620,216, effective January 1, 1991, in conformance with the
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� formula for such increases in the Letter of Intent; and
• WIiEREAS, the adjustment in airline landing fees planned for �
January 1, 1991, was deferred while the County consulted with the "
airlines on the potential impact of FAA-mandated security levels .
and proposed adjustments to airport capital projects; and
- WHEREAS, on January 11, 1991, the FAA began instructing the t.��
Airport to increase its security level with a final increase to
, °Threat Level" IV procedures required by January 20th; and �
_� WHEREAS, on February ilth the County Commissioners reviewed
� and approved of alternatives to be presented to the airlines for
' � funding the then estimated $294,000 cost of increased Airport
, :�:''� security, and these alternatives were presented to and discussed
. � with the airlines via letters and conference calls on February 14
"':,;:;�;_:� and March 5 and 6, 1991; and
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WHEREAS, the alternative preferred by the County
,.��h� Commissioners proposed a modification of the Airport Capital
:_ ; Improvement Plan (adding, deleting, and changing the schedule for
some projects), which requires approval of at least one airline
;_;_j under the Letter of Intent and would result in landing fees of
, � $.97 per thousand pounds for 1991 and $.43 projected for 1992
-._�� (averaging $.70 for both years) ; and
i WHEREAS, the other alternative did not require airline
- h:•r approval of any capital plan changes but results in landing fees
�"b::'.:. � ' .
,x:,..:� of $1.22 per thousand pounds for 1991 and $.43 projected for 1992
; � (averaging $.83 for both years) ; and
; WHEREAS, the FAA notified the Airport on March 29, 1991,
=.;y that it could reduce the level of security at the airport,
`��''"" resultin y
• ;;,;��,� g in a reduction of the estimated cost of securit to
;�''=iJ $180,682 for 1991; and
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,.x�.;=;a WHEREAS, this reduction in security costs allows a reduction
°��` in proposed airline landing fees for 1991 to $.7o per thousand
;����� pounds for the preferred alternative and $.88 for the other
,::s�3 alternative; and ,
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� � WHEREAS, this reduction in costs and the resulting landing
, •.�;;.,�,�;�� fee alternatives were reviewed with the airlines on April 2,
l.� 1991, but the airlines have yet to approve of the Capital
Improvement Plan modifications required to implement the
_ u'� preferred alternative.
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-%^:'`'�`-�,,.�''.-.��,- NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
. �,��� COMMISSIONERS OF PITKIN COUNTY COLORADO THAT:
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Z. F.'
��' 1. The terminal rent for signatory airlines previously set
at a total of $620,216 for 1991 in accordance with the terms of '
the Letter of Intent is hereby confirmed.
2. The landing fee for signatory scheduled FAR Part 121 �
ais carriers and signatory FAR Part 135 (air taxi and/or
commuter) operators contained in Section 4-1 of Article 4 of the �r
Pitkin County Airport Regulations, Title IV, Pitkin County Code I�
(and the Airport's schedule of rates, fees and charges for -
lessees, licensees and permittees), shall be and hereby is
, amended to read in part as follows:
... ;;•.
"4-1 There is hereby imposed on, and shall be paid by,
all signatory scheduled FAR Part 121 air carriers and ;
signatory FAR Part 135 (air taxi and/or commuter)
� operators authorized to serve Pitkin County and using
_ ' '>_� the airport, a rate or charge on all arrivals of
.::� aircraft, from which such carrier or operator shall
'•%+.;.� derive revenue, equal to eighty-eight cents ($.88) per 1.
,�i one thousand (1,000) pounds of maximum allowable gross
����:,, landing weight;"
3. The rates, fees, and charges herein established shall
' be effective on and after January 1, 1991.
�.`� 4. The rates, fees, and charges herein established are
;,� determined and declared by this Board to be in compliance with
- . -:;:a:�l
its rate-making policy as adopted in Resolution #&�-56A.
• ��_! 5. The rates, fees, and charges herein established are ,
;, .� found to be in compliance with the County's obligations under the ,
� Letter of Intent executed with the airlinas.
` �
. `�� 6. The provisions of this Resolution shall be severable
��'"� and if any portion(s) or provision(s) of this Resolution shall be
declared invalid or unenforceable, such a declarati.on shall not
,����� render any of the other portion(s) or provision(s) invalid or
Y' unenforceable and all remaining portions or provisions of this
".�`� Resolution shall be given full force and effect. ,
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"I 7. This Resolution shall be available for public �
- inspection during normal business hours in the office of the
� � Director of Aviation, Aspen-Pitkin County Airport.
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�-`:�, 8. This Resolution shall be published hy title and short
outline only after adoption.
- �,
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, TNTRODUCED, FIRST READ, AND SET FOR PUBLTC HEARING ON TAE
r`Y'� 2ND DAY OF APRIL, 1991.
NOTICE OF PUSLIC HEARING PUBLISHED IN THE ASPEN TIMES ON TFiE
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;� 11TH DAY OF APRTL, 1991
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APPROVED AND ADOPTED UPON SECOND READII3G AND AFTER PUBLIC -
HEARING ON TAE 23RD DAY OF APRIL, 1991. `
� PUBLISAED AFTER ADOPTION IN THE ASPEN TIMES ON THE 3RD DAY
OF MAY, 1991. �.
ATTEST: BOARD OF COUNTX COMMISSIONERS
pF PITKIN COUNTY, COLORADO
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By:
;,,;i,r i J ette Jones Waynej thridge, irman
, i: � uty Clerk & Recorder
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' � �°'"' APPROVED AS TO FORM:
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�:�; Timot hitsitt
_,� County A �o ney
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RECpMMENDED FOR APPROVAL: MANAGER APPROVAL: �
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-� �,.'��" �/�� �r��'`�c�s—L )`J i���' ��I��IG1� �i
�� . " Tom Oken Reid Haughey T— '
:st;'.:� Administrative Services County Manager +
- � ,zm Director
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"�-�x Chairtnan Wayne Ethridge voting �.
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Commissioner Ross vo4ng
•-� Commissioner True wting .!/L-
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- Commissioner Tuite voting ��.
�'�:.`' ctco air.rev.9lrates.reso
.;,;,t. p /i+'P/ Comm+ssioner Crowiey votir�g ��5£i�-T
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