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HomeMy WebLinkAboutbocc.res.001.2001 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, SETTING INITIAL AIRPORT FEES AND CHARGES FOR 2001 Resolution#001-2001 RECITALS 1. Pitkin County("County') owns, operates and sponsors the Aspen/Pitkin County Airport ("Airport"). 2. The County has authority to set, charge, collect and enforce rents, fees and charges for the occupancy and use of the Airport, pursuant to, inter alia, Sections 41-4-101 et seq., 30-11-107, 30-15-401 and 30-35-201 and 202, 1973 C.R.S., as amended, the Pitkin County Home Rule Charter, as amended, and the Pitkin County Code, Title IV, Airport Regulations, as amended. 3. The Airport financial and rate-setting policies are set out in Resolution#87-56A 4. Historically, the County entered into long-term contracts with airlines and set fees on a"residual"basis under which airline fees were subsidized from other airport revenues. 5. The County now contracts with airlines on a year-to-year basis and sets fees on a "compensatory"basis under which airlines and general aviation pay the full cost of their use of airport facilities. 6. The Airline-related Policies, Procedures and Standards provides that in December of each year, the County will adopt its budget after affording the opportunity for airline input, and will set airline rates and charges effective January 1 of the following year. 7. The airlines and general aviation have been given the opportunity to comment on the proposed rent and landing fees for 2001 and the Airport's budget and updated capital improvement plan. The 2001 budget and capital improvement plan for the Airport was reviewed in public session, first reading was held thereon on December 6, 2000, and a public hearing was held thereon on December 20, 2000. 8. The County has compared its proposed airport fees and charges to those of other comparable airports and determined that its proposed fees and charges are not excessive. NOW THEREFORE BE IT RESOLVED by the Board of County Commissioners of Pitkin County, Colorado that: 1. The County's Airline-related Policies, Procedures and Standards are hereby adopted and incorporated herein as Exhibit"A." 2. The terminal rent for exclusive and preferential space for Signatory, Pre-signatory, and Multi-Seasonal Airlines for 2001 shall be $33.66 per square foot for indoor space and $11.22 per square foot for outside covered space. The terminal rent for preferential space for Seasonal Airlines for 2001shall be $47.12 per square foot for indoor space and $15.71 per square foot for outside covered space. The terminal rent for shared-space for all airlines for 2001 shall be $33.66 per square foot and shall be allocated among the airlines as shown in Exhibit `B." Seasonal and Multi-seasonal Airlines shall pay shared-space rent according to the same allocation formula as shown in Exhibit `B" except that they shall pay a"per-turn" fee of$90 per aircraft departure if such fee is less than the 20% of shared space rent to be split equally between the airlines monthly. Such Seasonal and Multi-seasonal Airline "per-turn" fees shall be deducted from the 20% shared space monthly rent before splitting this rent equally between the other airlines. 3. The landing fees contained in Section 4-1 of Article 4 of the Pitkin County Airport Regulations, Title IV, Pitkin County Code(and the Airport's schedule of rates, fees and charges for lessees, licensees and permittees), shall be and hereby are amended to read in part as follows: "4-1 There is hereby imposed on, and shall be paid by, all FAR Part 121 or 125 air carriers and scheduled 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 the following amounts per one thousand (1,000) pounds of maximum allowable gross landing weight: $1.49 for Signatory, Pre-signatory, and Multi-Seasonal Airlines, and $2.09 for all others including Seasonal Airlines. There is hereby imposed on, and shall be paid by, such carriers or operators, a rate or charge on all arrivals of aircraft from which such carriers or operators shall not derive revenue, equal to $.25 per one thousand (1,000) pounds of maximum allowable gross landing weight. In addition there is hereby imposed on, and shall be paid by, all non-scheduled FAR Part 135 (air taxi, charter, and/or commuter) operators and all FAR Part 91 operators (but excluding operators of year-round locally based aircraft with maximum gross landing weights of 12,500 pounds or less) using the airport, a rate or charge on all arrivals of aircraft equal to $1.56 per one thousand(1,000)pounds of maximum allowable gross landing weight;" 4. The rents and landing fees established herein shall be effective on and after January 1, 2001. 5. The fuel flowage fee collected by the fixed base operator on behalf of the County is hereby continued at $.10 per gallon until changed by future resolution of the Board. 6. The rates, fees and charges herein established are determined and declared by this Board to be in compliance with its rate-making policy as adopted in Resolution #87-56A and its Airline-related Policies, Procedures and Standards adopted in this Resolution. 7. The rates, fees, and charges herein established are found to be in compliance with the County's obligations under the Lease and Use Permits executed with the airlines. 8. 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 declaration shall not render any of the other portion(s) or provision(s) invalid or unenforceable and all remaining portions or provisions of this Resolution shall be given full force and effect. 9. This Resolution shall be available for public inspection during normal business hours in the office of the Director of Aviation, Aspen-Pitkin County Airport. INTRODUCED, FIRST READ, AND SET FOR PUBLIC HEARING ON THE 6TH DAY OF DECEMBER 2000. NOTICE OF PUBLIC HEARING PUBLISHED IN THE ASPEN TIMES ON THE 30TH DAY OF DECEMBER 2000. APPROVED AND ADOPTED UPON CONTINUED SECOND READING AND AFTER PUBLIC HEARING ON THE 1 OTH DAY OF JANUARY 2001. PUBLISHED AFTER ADOPTION IN THE ASPEN TIMES ON THE 20TH DAY OF JANUARY 2001. ,A1 EST: BOARD OF COUNTY COMMISSIONERS OF PITKINCOUNTY, COLORADO By J anette Jones Mick Ireland, ChairrAan eputy Clerk&'Recorder Date: 0(- ( 9-01 APPROVED AS TO FORM: MANAGER APPROVAL: all, c John Ely Hilary Smit County ey Acting County Manager RECOMMENDED FOR APPROVAL: Tom Oken Administrative Services Director 3 EXHIBIT"A" ASPEN/PITKIN COUNTY AIRPORT AIRLINE-RELATED POLICIES, PROCEDURES AND STANDARDS A. INTRODUCTION. Pitkin County, Colorado, through its Board of County Commissioners (`BOCC"), as sponsor of the Aspen/Pitkin County Airport, acknowledges its obligations, pursuant to federal statutes and Federal Aviation Administration (FAA) Grant Agreements, to provide access to and use of the Airline Terminal and related facilities at rates and on terms and conditions that are fair, reasonable and not unjustly discriminatory. However, the BOCC also asserts its rights, as owner and operator of the Airport, to regulate the access to and use of such ground facilities in order to bring about an orderly allocation of available areas and the most efficient use of limited space and,pursuant to such rights,hereby establishes certain policies concerning access to and use of the Airline Terminal and related facilities. In establishing these policies,the Airport is attempting to: manage the Airport in a prudent or businesslike manner; comply with its obligations under federal and state law; and recognize the rights of all interested parties. The County reserves the right to alter or amend these policies as part of its semi-annual rate-making and review process in its sole discretion, subject only to federal law and existing agreements. B. DEFINITIONS. The following definitions shall apply herein: 1. "Signatory Airline." A Certificated Scheduled Airline that: a. Has entered into a written Lease and Use Agreement for a term of at least one year; and b. Undertakes to provide and does provide scheduled service of a least one flight daily on a year-around basis; and C. Has been a satisfactory tenant(e.g., no arrearages or defaults) for at least one year; and e. Agrees to enter into good-faith negotiations with other airlines to provide "handling" services, if requested by the Airport. 2. "Pre-Signatory Airline". A Certificated Scheduled Airline that: a. Undertakes to provide and does provide scheduled service of a least one flight daily on a year-around basis; and b. Intends to otherwise qualify for Signatory status, as provided herein; and C. Has entered into a written Lease and Use Agreement for a term of at least one year. 3. "Multi-seasonal Airline." A Certificated Scheduled Airline that: a. Has entered into a written Lease and Use Agreement to rent Airline Terminal space, if available, for a term of at least one year; and b. Undertakes to provide and does provide scheduled service of a least one flight daily during the winter and summer high seasons; and C. Agrees to enter into good-faith negotiations with other airlines to provide "handling" services, if requested by the Airport. 4. "Seasonal Airline" is an Airline that does not qualify (or that fails to qualify) as a Signatory,Pre- Signatory, or Multi-seasonal Airline. 5. Other words and terms used herein are to be defined and interpreted according to the following priority: a. As defined by the FAA,through its enabling legislation and Federal Aviation Regulations (FARS). b. As defined by Colorado real estate statutes, case law and rules and regulations (including, without limitation, those adopted by the Colorado Real Estate Commission). C. As defined by common usage in the aviation industry, from the point-of-view of a public airport. C. AIRLINE TERMINAL ACCESS AND SPACE ALLOCATION POLICY. It is the policy of the BOCC to provide access to the Airline Terminal and Facilities and to allocate such spaces and facilities among Airlines on a modified"first-come-first-served"basis, recognizing the extreme seasonal nature of Airport traffic. Procedure. Airport staff shall establish deadlines reasonably in advance of the high-traffic winter and summer seasons by which Airlines new to the airport are required to submit a formal application for access (including a non-refundable application fee)in a form established by the Airport setting out the details of their proposed operation. The Airport shall thereafter allocate space between and among such new Airlines, Pre-Signatory, Multi-seasonal and Seasonal Airlines according to the following priorities: a. Number of passengers served(historical/projected/contracted). b. Duration (seasonal, year-around) and frequency(daily, other-than-daily) of proposed service on an annual basis. C. Amount/type of space/equipment/facilities needed; method of providing ticketing, customer service, baggage handling, ground services. d. Type/size of aircraft to be used. e. Status and seniority of Airline and length of Agreement term(less than year, full-year, multi-year). 2 f. Coordination with schedules with other Airlines. g. Inter-Airline agreements (handling, code-sharing). D. AIRLINE LEASING POLICY. It is the policy of the BOCC to provide access through leases that meet the legitimate operational and business needs of the Airport. In addition to the obligations recited above, the BOCC acknowledges its obligations to operate the Airport in a manner to make it as self-sustaining as possible, and to establish rates and charges on an appropriate basis . Procedure. Once an Airline has qualified for access, the Director of Aviation will categorize the Airlines as Signatory,Pre-Signatory, Multi-seasonal or Seasonal, which categories have various legal, financial and operational rights and obligations, as follows: 1. Designation of Exclusive Use and Preferential Use Areas. a. Signatory Airlines shall be entitled to lease all or part of their Premises as "Exclusive Use Areas." Such areas, while still subject to re-allocation to other Airline (pursuant to the Airport's obligation to provide access to all qualified Airlines and reserved rights to do so in the Signatory Lease and Use Agreement) are of a lower priority than Preferential Use Areas to be re-allocated. b. Pre-Signatory Airlines shall be required to lease all of their Premises as "Preferential Use Areas,"which are subject to re-allocation to other Airlines by the Airport according to standards and procedures set out in an exhibit to their respective Lease and Use Agreements. C. Multi-seasonal and Seasonal Airlines shall be required to lease all of their Premises as "Preferential Use Areas." 2. Airline rates and charges. a. Airline rates and charges will be determined on a compensatory basis adjusted to recover only those historical capital costs designated by the BOCC. b. Signatory Airlines pay the rent and landing fees established by the Airport on a compensatory basis. C. Pre-Signatory and Multi-seasonal Airlines pay the compensatory rent and landing fees established by the Airport increased by an amount based on the administrative/legal and operations costs associated with the commencement and expiration/termination of Lease and Use Agreements. d. Seasonal Airlines pay the rent and landing fees established by the Airport increased by an amount based on: the administrative/legal and operations costs associated with the commencement and expiration/termination of Lease and Use Agreements; fixed annual costs incurred regardless of the period of occupancy; and seasonal costs incurred that relate directly to the occupancy of that season. 3 / 3. Performance Guarantees and Security Deposits. a. Signatory Airlines, if they have been satisfactory tenants for at least three(3) years, may have security deposits and performance guarantees waived by the Airport, subject to Airport's right to re-institute deposits and/or guarantees in the event of a future non-performance default. b. Pre-Signatory and Multi-seasonal Airlines shall provide a cash security deposit and a performance guarantee ( irrevocable letter of credit) of at least 3 months' rent, landing fees and PFCs, as adjusted for the high season, plus a reserve for collection costs. If Airline performs satisfactorily, the amount may be reduced incrementally over a period of years. C. Seasonal Airlines shall provide a cash security deposit and a performance guarantee(irrevocable letter of credit) of at least 3 months' rent, landing fees and PFCs, as adjusted for the high season,plus a reserve for collection costs. 4. Budaet and Rate-setting Cycle. a. hi November of each year the County will consult with the Airlines on operating budget projections for the following year and an updated Capital Improvement Plan (CIP). b. In December of each year the County will adopt its budget, after affording the opportunity for Airline comment, and will set Airline rates and charges effective January 1 of the following year. C. In May or later each year the County may consult with the Airlines on updated Airport budget projections and CIP progress for the current year, actual audited results from the prior year and any proposed mid-year change to Airline rates and charges. Any mid-year change to Airline rates and charges may be effective June I or later. E. APPEAL RIGHTS. The determinations and space allocations described hereunder are to be made by the Director of Aviation. Any Airline may appeal such determination to the County Manager and/or the BOCC in a writing stating the rate,term or condition objected to and the basis for the objection. airport\rate_exa 4 / Exhibit"B" Pitkin County Airport 2001 Airline Terminal Space and Rent Space Allocation Tix Counter& Pax Tix O Baggage Admin Bag Service Parts I Total I Outside Grand Square Footage Ancil Admin Makeup &O s Office Storage I Interior I Covered Total United Express Exclusive 572 1,534 1,554 840 465 4,965 3,332 Preferential 120 140 260 Total 692 1,534 1,554 840 465 140 5,225 3,332 8,557 Mesa Exclusive 93 273 768 350 1,484 411 Preferential Total 93 273 768 350 1,484 411 1,895 Ozark Exclusive - Preferential 366 366 Total 366 366 366 Northwest Airlines/Mesaba Exclusive - Preferential 270 688 768 556 445 2,727 500 Total 270 688 768 556 445 2,727 500 3,227 Shared space Bag claim 7,500 7,500 _Passenger hold room 4,067 4,067 11,567 11,567 11,567 21,369 4,243 25,612 Rent Allocation Outside Covered Terminal Interior Annual I Monthly Annual I Monthl Signatory rate per sq ft $ 11.22 $ 33.66 United Express Exclusive 37,385.04 3,115.42 167,121.96 13,926.83 Preferential for 1/14/15 - - - - Preferential 8,751.60 729.30 Total 37,385.04 3,115.42 175,873.56 14,656.13 213,258.60 Mesa Exclusive 4,611.48 384.29 49,951.44 4,162.62 Preferential Total 4,611.48 384.29 49,951.44 4,162.62 54,562.92 Multi-seasonal rate/sgft $ 11.22 $ 33.66 Ozark Exclusive - - - - Preferential 12,319.56 1,026.63 Total 12,319.56 1,026.63 12,319.56 Multi-seasonal'rate/sq ft $ 11.22 $ 33.66 Northwest Airlines/Mesaba Exclusive - - - - Preferential 5,610.00 467.50 91,790.88 7,649.24 Total 5,610.00 467.50 91,790.88 7,649.24 97,400.88 377,541.96 Shared space rale/sgft $ 33.66 389,345.28 32,445.44 766,887.24 allocated monthly as follows: 20%is split equally between the airlines 6,489.09 80%is split in the ratio of enplaned passengers 25,956.35 rent0l.xls