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HomeMy WebLinkAboutbocc.con.253.20 - BOCC Contract No. 253.2020 17(1)fralw ASPEN/PITKINICOUNTY AIRPORT OWNED AND OPER.ATLD Ss: P TKiN `-,GUNT'f GROUND HANDLING SERVICES LEASE AND OPERATING PERMIT Aspen/Pitkin County Airport December 18, 2020 Permittor: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO 530 East Main Street, Third Floor Aspen,Colorado 81611 (970) 920-5190 (Phone) (970)920-5198 (Fax) Permitter: SkyWest Airlines Inc. 444 S.River Rd. St. George,UT 84790 435-634-3000 (Phone) 435-632-0444 (Fax) TABLE OF CONTENTS RECITALS 1 1. INTENT AND INCORPORATION 3 1.1 Intent 3 1.2 Definitions 3 1.3 Exhibits 3 2. USE OF AIRPORT FACILITIES 3 2.1 Demise of Premises 3 2.2 Acceptance of Premises 4 2.3 Additional Premises and/or Uses 4 2.4 Additional Airport Fixtures and Equipment 4 2.5 County's Reserved Rights 5 2.6 Permitted Uses 6 2.7 Exclusions and Reservations 7 2.8 Reservation of Rights 7 3. TERM 8 3.1 Term 8 3.2 Termination 8 4. FINANCIAL OBLIGATIONS OF PERMITTEE 8 4.1 Rent, Fees and Charges 8 4.2 Terms and Conditions of Payments 8 4.3 Payment of Taxes 8 4.4 Financial Security for all Permittee Operations 8 5. OTHER OBLIGATIONS OF PERMITTEE 10 5.1 Operations 10 5.2 Physical Security for Premises 10 5.3 Environmental Quality Improvement Plan(EQIP) 10 5.4 Cleaning, Maintenance and Repair and Replacement 11 5.5 Utilities 11 5.6 Snow Removal 11 5.7 Trademarks,Trade Names 1 1 5.8 Signs 11 5.9 Installations/Additions/Alterations/Improvements 12 5.10 Waste 12 5.11 Liens/Claims 12 5.12 County Pro-Competition Policy 12 5.13 Assignment and Operations for Other Permittees 12 6. INDEMNITY AND INSURANCE 13 6.1 Permittee Indemnity 13 6.2 Permittee Insurance 13 6.3 County Insurance 13 7. OBLIGATIONS OF COUNTY 14 7.1 Operation of Airport 14 7.2 Utilities 14 7.3 Snow Removal 14 7.4 Maintenance, Cleaning, and Repair 14 7.5 Quiet Enjoyment 15 8. OTHER AGREEMENTS 15 8.1 Coordination with Others 15 8.2 Subjections, Exceptions and Reservations 15 8.3 Airport Master Planning and Land Use Planning 1 5 8.4 Compliance with Applicable Laws and Regulations 16 9. DEFAULT/TERMINATION/SURRENDER 16 9.1 Events of Default 16 9.2 Notice of Default 17 9.3 Right to Cure 17 9.4 Notice of Termination/Right to Re-Enter 17 9.5 Remedy not Exclusive 18 9.6 Surrender 18 10. GENERAL PROVISIONS 18 10.1 Notices 18 10.2 Entire Agreement 18 10.3 Severability 18 10.4 Modification 18 10.5 Non-Waiver 19 10.6 No Presumption 19 10.7 Relationship of Parties 19 10.8 Attorney Fees 19 ii 10.9 Governing Law and Venue 19 10.10 Effect of Permit 19 10.11 Headings 19 10.12 Limitation of Benefit 19 10.13 Capacity to Execute 19 10.14 Time is of the Essence 20 LIST OF EXHIBITS EXHIBIT 1 Airport Definitions EXHIBIT 2 Current Premises EXHIBIT 3 Current Rates and Charges EXHIBIT 3A Permittee Leased Area EXHIBIT 4 Environmental Quality Improvement Plan("EQIP") EXHIBIT 5 Cleaning, Maintenance and Repair of Premises, and Maintenance. Repair and Replacement of Fixtures and Equipment EXHIBIT 6 Minimum Insurance Requirements iii GROUND HANDLING SERVICES LEASE AND OPERATING PERMIT Aspen/Pitkin County Airport THIS GROUND HANDLING SERVICES LEASE AND OPERATING PERMIT, (hereinafter the"Permit")made effective as of December 18,2020,is by and between the BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO (hereinafter the "County"), a Colorado home-rule County, as Permittor, and SkyWest Airlines, Inc., (hereinafter the "Permittee"). RECITALS 1. The County is the owner, operator and sponsor of the Aspen/Pitkin County Airport (Sardy Field) ("ASE") located in Pitkin County in the vicinity of Aspen, Colorado (hereinafter the "Airport"), at which it has made available certain land areas and facilities for and in support of commercial aeronautical activity including public airfield facilities, an airline terminal and related airline facilities, and a general aviation terminal and related general aviation and fixed-base operator facilities; and 2. These certain land areas and facilities are further designated as areas and facilities for public use(subject to rules and regulations for each classification of user)areas and facilities for exclusive, preferential,or non-exclusive commercial use(subject to written agreements with the County),and certain areas "reserved" by the County for future designation;and 3. The County has the authority to operate and manage the Airport, to permit and regulate commercial and certain aeronautical uses and activities at the Airport and to lease,license or permit the occupancy and use of land areas, buildings, improvements and facilities thereon, pursuant to, inter alia, C.R.S. Sections 30-11-107, 30-15-401, 30-35-201/202, 41-4-101 et seq., as amended, Title X of the Pitkin County Code, as amended, and Section 8.7 of the Pitkin County Home Rule Charter, as amended; and 4. United Airlines, Inc. and County have entered into a Lease and Use Agreement which allows United Airlines, Inc. to contract from suppliers, contractors, Affiliates, or other Signatory Airlines, ticketing,passenger, and Ground Handling Services at the Airport and to purchase such services and goods as are reasonably needed to conduct its air transportation business at the Airport; and 5. Permittee is in the business of providing ticketing, passenger, and Ground Handling Services to air transportation companies; and wishes to provide ticketing, passenger, and Ground Handling Services at Airport; and 6. United Airlines, Inc. desires to hire and retain Permittee to perform Ground Handling Services for flights of its affiliated airlines at the Airport; and 7. Permittee desires to provide such ticketing,passenger, and Ground Handling Services and to occupy 798 square feet of space (319 square feet interior and 479 square feet exterior) depicted 1 on Exhibit 3A, attached hereto, and made a part of the Permit, for the purposes of providing Permittee interior office space as well as Permittee owned modular office and storage space for certain equipment used by Permittee employees; and 8. County has determined that it is in the County's best interest to lease said space to Permittee; and 9. The County is willing to grant Permittee certain rights and privileges for the use of the Airport and its facilities upon the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions contained herein,the County and Permittee do mutually undertake and agree as follows: 2 1. INTENT AND INCORPORATION 1.1 Intent It is the intent of the parties hereto that this Permit is to establish, define and control the relationship of the parties in the occupancy and use of the Airline Terminal and related Airport land areas and facilities in the provision of Ground Handling Services at the Airport. 1.2 Definitions Words and terms used herein are to be defined and interpreted according to the following priority: 1.2.1 As set forth in this Permit or in the annexed Exhibit I. 1.2.2 As defined by the Federal Aviation Administration (hereinafter the "FAA"), through its enabling legislation and Title 14 of the Code of Federal Regulations, as well as defined by the Transportation Security Administration (hereinafter the "TSA"), through its enabling legislation and Title 49 of the Code of Federal Regulations. 1.2.3 As defined by Colorado real estate statutes, case law, and rules and regulations(including,without limitation,those adopted by the Colorado Real Estate Commission). 1.2.4 As defined by common usage in the aviation industry, from the point-of- view of a public airport. 1.3 Exhibits All exhibits attached hereto and/or referred herein are incorporated herein in their entirety by those references or this reference. 1.3.1 Lettered Exhibits (e.g., "3A") are maps (either sketch or scale) of the Premises leased by Permittee. The County and Permittee acknowledge that such Lettered Exhibits may not be drawn to scale and shall be replaced, upon the mutual agreement of the parties, at such time as scale drawings based on actual survey data become available. 1.3.2 Numbered Exhibits (e.g. "1") contain text to be incorporated by reference and are identified as follows: 1. Airport Definitions 2. Current Premises 3. Current Rates and Charges 4. Environmental Quality Improvement Plan("EQIP") 5. Cleaning, Maintenance and Repair of Premises, and Maintenance, Repair and Replacement of Fixtures and Equipment 6. Minimum Insurance Requirements 2. USE OF AIRPORT FACILITIES 2.1 Demise of Premises County hereby grants to Permittee, and Permittee hereby accepts,the right to occupy and use certain Airport land area described herein below (the 'Premises"), and depicted on Exhibit 3A (Permittee Leased Area), subject to 3 the terms and conditions of this Permit, as follows: 2.1.1 Public Airfield Facilities. As defined in Exhibit 1. 2.1.2 Airline Terminal. As provided in Exhibits 1 and 2. The Premises,Fixtures and Equipment described in Exhibit 2 may be modified from time to time during the term of this Permit, by an amended Exhibit 2 agreed to by the County and Permittee, and duly executed by authorized representatives of the County and Permittee. 2.1.4 Airline Terminal SIDA. As provided in Exhibits 1 and 2. The Premises, Fixtures and Equipment described in Exhibit 2 may be modified from time to time during the term of this Permit, by an amended Exhibit 2 agreed to by the County and Permittee, and duly executed by authorized representatives of the County and Permittee. 2.1.5 Licenses and Easements. 2.1.5.1 Permittee is granted the non-exclusive licenses for access to and from the Premises, as designated by the County and as are reasonably necessary,in the discretion of the County, for the safe and efficient use of the Premises. 2.1.5.2 Permittee,its employees,and guests,is further granted the right to use in common with others authorized to do so, the Terminal Aircraft Apron; the Premises; and in common with other Airport users, including, where applicable, the general public, and the Public Areas. The right to use such areas of the Airport includes and is limited to the rights reasonably necessary for the proper operation of Permittee's passenger, ticketing, and Ground Handling Services business.Nothing in this Permit shall be construed as authorizing Permittee to conduct any business separate and apart from the conduct of its Ground Handling Services business. 2.1.6 Employee Parking Lot. The non-exclusive right to use the employee parking lot, the location of which may be determined by the County from time-to-time, in common with other similarly classified entities, and subject to fees, requirements and regulations as are or may be established by the County or Airport parking operator. 2.2 Acceptance of Premises Permittee acknowledges that Permittee has inspected (or has had the opportunity to inspect)the Airport, Airline Terminal, and Premises and agrees that they are fit for Permittees' use and enjoyment,and are accepted and will be occupied hereunder on an "as is" basis. 2.3 Additional Premises and/or Uses if, during the term of this Permit, additional Premises are made available for occupancy and use by Permittee, or additional uses of the Premises are permitted, Permittee and County shall,prior to such occupancy and use, negotiate in good faith and agree on the additional fees and charges to be paid by Permittee for such occupancy and/or use. 2.4 Additional Airport Fixtures and Equipment If, during the term of this Permit, additional fixtures and/or equipment are made available for use by Permittee, 4 Permittee and County shall, prior to such use, negotiate in good faith and agree on the additional fees and charges to be paid by Permittee for the use of such fixtures and/or equipment. 2.5 County's Reserved Rights Notwithstanding anything herein to the contrary, County reserves the following rights with respect to the Airport and the leased or licensed occupancy and permitted uses, operations, and activities to be conducted thereon by Permittee: 2.5.1 The right to unimpeded access over and across the land areas of the Premises; provided, that County shall not, in the exercise of this reserved right, unreasonably interfere with or impair Permittee's rights hereunder or its use or operation of such areas. County also reserves the right to enter into the Premises, at times and in a manner reasonable to the circumstances of each entry, for the purpose of inspecting the Premises, enforcing any of County's rights hereunder,preventing waste or loss, or responding to emergencies. 2.5.2 For the use and benefit of the public, the right of flight for the passage of aircraft in the air space above the surface of the Premises,together with the right to cause in said air space such noise as may be inherent in the operation of aircraft utilizing the Airport. 2.5.3 The right to protect the aerial approaches of the Airport against obstruction, including the right to prohibit Permittee from erecting, or permitting to be erected, any building or other structure on the Premises,which has been determined by the Federal Aviation Administration pursuant to 14 C.F.R.Part 77 to constitute a hazard to air navigation. 2.5.4 The right, during the time-of war, national or local emergency or terrorist attack, to lease the Airport or any part thereof, including the Premises or any part thereof, to the United States for military purposes, and, in the event of such lease to the United States for military purposes, the provisions of this Permit shall be suspended insofar as such provisions may be inconsistent with the provisions of the lease to the United States. 2.5.5 The right to direct all activities of Permittee at the Airport in the event of an emergency. 2.5.6 The right to subordinate the provisions of this Permit to the provisions of any future agreement between the County and the United States relative to the operation, maintenance or development of the Airport which agreement is required as a condition precedent to the expenditure of federal funds for the development, maintenance or operation of the Airport; if such an agreement is entered into between the County and the United States, the parties agree to execute an amendment to this Permit so as to remove any material inconsistencies between this document and any agreement with the United States. 2.5.7 Furthermore, in the event that by reason of any such agreement with the United States as aforesaid, it becomes necessary to modify, relocate or remove any improvements or other structures situated on the Premises,Permittee agrees to modify,relocate or remove any such improvements or structures as directed by County and County shall compensate and reimburse Permittee for reasonable damages,costs and expenses(including modification,removal or relocation 5 costs) suffered or incurred by Permittee in consequence thereof. 2.5.8 The right to grant other leases, licenses, permits or rights to occupancy or use of the Airport so long as such other grants do not unreasonably interfere with or impair Permittee's rights hereunder or its occupancy or use of the Premises, and also reserves the right to direct changes in the way Permittee conducts its Airport operations in the event that County determines, in the exercise of its reasonable judgment, that one or more aspects of Permittee's method of operation is unreasonably interfering with the lawful and proper occupancy or use by others of the Airport. Provided, that this reserved right is not intended to allow County to deny Permittee the basic right to use the Premises for any of the uses permitted hereunder. 2.5.9 The right to further develop and/or improve the Airport, including the Premises,as County deems appropriate and/or as is required to satisfy obligations imposed by FAA or TSA,without interference or hindrance by Permittee,and County shall have no liability hereunder to Permittee by reason of any interruption to Permittee's operations on the Premises occasioned by such development and/or improvement of the Airport; provided, that any such development that temporarily or permanently modifies access to Permittee's premises is permitted as long as reasonable alternative access is provided. Additionally, if Permittee shall be unable to conduct reasonably normal business operations on the Premises by reason of any such development and/or improvement of the Airport,then rent and other fees payable by Permittee hereunder shall be subject to Equitable Adjustment during the period of such interruption. 2.5.10 The right from time to time to amend Title X (Airport Regulations) of the Pitkin County Code, in accordance with authorized Code amendment procedures, and Permittee shall be subject thereto, provided that no such amendments shall unreasonably interfere with or impair Permittee's rights hereunder or Permittee's use or operation of the Premises as herein described,or be contrary to Federal or State law. 2.5.11 The right to temporarily close the Airport, or any part of the Airport, in response to hazardous conditions, or for other purposes as may be approved by the FAA, without interference or hindrance by Permittee,and County shall have no liability hereunder to Permittee by reason of any temporary interruption to Permittee's operations on the Premises occasioned by such temporary closure. 2.6 Permitted Uses Notwithstanding anything herein to the contrary, County grants Permittee the following operating rights and privileges at the Airport: 2.6.1 The right to perform ticketing, passenger, and Ground Handling Services on behalf of United Airlines, Inc., and its Affiliate Airlines, in accordance with a certain Ground Handling Agreement by and between Permittee and United Airlines, Inc. with a July 1, 2015 Effective Date for the Airport. Permittee shall notify the County of any changes regarding such services within 90 days prior to the effective date of such proposed change. 2.6.2 The right to telephone and data service or other system of communication at the Premises herein leased from companies providing the same and right to install cables, wires, and other similar devices in order to provide such. The method and location of making such installations shall be subject to the prior written approval of the County. 6 2.6.3 The right to park and store (i.e., when not in use), its ground support equipment (e.g., baggage carts, power units, tugs, etc.) in areas designated by County for that purpose. The operation, use, and maintenance of ground support equipment shall comply with all applicable Airport Rules and Regulations. 2.6.4 The right to maintain and repair its ground support equipment (e.g., baggage carts, power units,tugs, etc.)in areas designated by County for that purpose. 2.7 Exclusions and Reservations The rights established in this Section shall not be exercised so as to interfere with County's operation of the Airport for the benefit of all aeronautical users, and shall be subject at all time to the restrictions herein and reservation of rights by County. 2.7.1 Permittee shall not knowingly do or permit its agents, directors, or employees to do anything at the Airport that would: (1)be in conflict or violate the requirements of 14 C.F.R. Part 139, as amended from time to time, or any successor regulation, order, or directive; (2)jeopardize the Airport's operating certificate obtained pursuant to such federal regulations;or(3) violate the provisions of any existing or future agreement between County and the United States Government or governmental authority relating to the operation or maintenance of the Airport. 2.7.2 Permittee shall not do or permit anything, either by its act or failure to act, that shall cause a hazardous condition so as to increase the risks normally attendant upon operations permitted by this Permit, create or contribute to a nuisance, or in any way obstruct or interfere with rights of others using the Airport. 2.7.3 Permittee shall not interfere or permit interference with the use, operation, or maintenance of the Airport, including but not limited to, the effectiveness or accessibility of the drainage,sewage,water,communications,fire protection,utility,electrical or other systems installed or located from time to time at the Airport. 2.7.4 Permittee shall not do or permit to be done anything that shall cause the cancellation or violation of the provisions, or any part thereof, of any policy of insurance for the Airport,or that shall cause a hazardous condition so as to increase the risks normally attendant upon operations permitted by this Permit. If Permittee shall do or permit to be done any act not permitted under this Permit, or fails to do any act required under this Permit, regardless of whether such act shall constitute a breach of this Permit, which act or failure, in and of itself, causes an increase in County's insurance premiums,Permittee shall promptly remedy such actions and/or pay the increase in premiums,upon notice from County to do so. 2.7.5 County reserves the right to designate the locations within which all of the activities conducted at the Airport,including the activities authorized herein,shall be conducted,and to reasonably change such designations from time to time. 2.8 Reservation of Rights Any and all rights and privileges not specifically granted to Permittee for its use of and operations at the Airport pursuant to this Permit are hereby reserved for and to County. 7 3. TERM 3.1 Term The term of this Permit shall commence as of December 18, 2020 and shall expire on December 17, 2021 or unless sooner terminated as provided herein. 3.2 Termination This Permit may be sooner terminated for cause, upon the default of either Party, as provided below. Notwithstanding anything contained herein to the contrary,this Permit may be terminated by either party upon 30 days' prior written notice. 4. FINANCIAL OBLIGATIONS OF PERMITTEE 4.1 Rent. Fees and Charges Permittee shall pay such reasonable and not unjustly discriminatory rent, fees and charges as the County uniformly shall impose upon Permittee and similarly situated Airport users pursuant to the then-current County Rate Resolution. Exhibit 3 presents the current applicable rent, fees and charges for the described occupancy and use of the Premises as of the Effective Date of this Permit. 4.2 Terms and Conditions of Payments 4.2.1 The monthly installments of fees and charges as provided for herein shall be paid by Permittee without deduction, set-off or escrow of any kind whatsoever. Premises Rent shall be due and payable on the 20th of each calendar month for rent due in the same month, or part thereof. 4.2.2 All payments shall be made in good U.S. funds; made payable to the "Aspen/Pitkin County Airport;" and delivered to the office of Airport Administration, 0233 E. Airport Rd., Ste. A, Aspen, Colorado 81611. 4.2.3 All payments shall be considered delinquent if not received by the last day of the month in which due. All delinquent payments shall each bear default interest on any unpaid and delinquent balance for any month so delinquent at the rate of two percent (2%) per month on the unpaid balance, compounded monthly; default interest shall be due and payable without notice or demand with the next regular payment due. 4.3 Payment of Taxes Permittee shall timely and fully pay all business, personal property taxes and all other taxes lawfully assessed against Permittee by reason of its use and occupancy of the Premises; provided, however, that Permittee reserves the right to dispute or appeal the imposition or amount of any such tax, so long as such action is in good faith and under the procedures established in the relevant taxing statute or ordinance. 4.4 Financial Security for all Permittee Operations Obligations hereunder including, without limitation, the full and timely payments of all required rent, fees, and 8 charges, shall be as follows: 4.4.1 Application Fee. If Permittee has not already done so under a predecessor agreement with the County, upon execution of this Permit,Permittee shall deposit with the County the sum of$1,500 as a non-refundable application fee to cover County' s estimated administrative costs. 4.4.2 Surety or Letter of Credit. Permittee shall obtain and maintain in force an Irrevocable Letter of Credit(or a cash security deposit or other security instrument acceptable to the County)(the"Security"hereinafter)from a surety licensed to do business in Colorado,in such forms and amounts as are acceptable to the County, in its sole discretion, in the amount estimated by the County to be not less than 90 days' obligations hereunder,to secure performance of all of Permittee's obligations hereunder including,without limitation, its obligation to pay all rent,fees and charges. These requirements for Security may be waived or reduced in writing by the County, in its sole discretion, for a Permittee with a satisfactory payment or performance history for at least three (3) years. This requirement has been waived for Permittee. Execution of this Permit will not itself re- impose this obligation for such Permittee, provided, however, that if the County issues a Notice of Non-Compliance or Notice of Default involving one or more failures to timely pay any rent or charges hereunder, it may, as part of that Notice, and as a material element of this Permit, require such a Security to be delivered promptly as part of any cure of such Notice. 4.4.3 Nature of Security. It is expressly agreed that instruments or amounts received under Paragraph 4.4.2 above (the "Security") are not an advance payment of rental or a measure of County's damages in case of default by Permittee. County shall have the right to commingle any cash amounts received hereunder with its other funds. 4.4.4 County Use of Required Security. 4.4.4.1 If any of the rent,fees,and charges hereunder shall be overdue and unpaid, then County may, at its option, and simultaneously upon Notice to Permittee, appropriate and apply any portion of the Security to the payment of any such overdue amount. In the event of the failure of Permittee to keep and perform any of the terms, covenants, and conditions of this Permit, then County may, at its option and upon Notice to Permittee (and its surety, if applicable), appropriate and apply the Security or so much thereof as may be necessary, to compensate County for advances, expenses, loss, or damage sustained or suffered by County,due to such breach on the part of Permittee. 4.4.4.2 Should the Security or any portion thereof be appropriated and applied by County for the payment of overdue rental or other sums due and payable by Permittee hereunder, or for a breach on the part of Permittee, the Permittee shall, within five days after the written demand of County,forthwith remit to County a reinstatement of the Surety or Letter of Credit the Security to the original sum deposited or required. 4.4.5 Lien on FFEI. In the event of any delinquent rent, fees, and charges hereunder,and to the extent thereof, including late charges and interest,the County shall be entitled 9 to a lien for such amounts on Permittee's trade Fixtures,Furniture,Equipment, and Inventory in use at or located on the Airport. 5. OTIIER OBLIGATIONS OF PERMITTEE 5.1 Operations In addition to requirements imposed on Permittee by FAA rules and regulations, Permittee agrees to cooperate with the County and other users of the Airport to meet at the request of the County and discuss in good faith Airport operational issues and to offer and/or consider solutions or mitigation techniques. 5.2 Physical Security for Premises 5.2.1 Permittee agrees that it will faithfully perform its obligations under all federal laws, regulations, or mandatory directives of the TSA or any other agency having jurisdiction,relating to anti-hijacking and terrorism,and to the security of passengers,baggage, and aircraft(collectively"Federal Security Regulations").Permittee acknowledges that Federal Security Regulations are rapidly changing, and are likely to impose burdens upon Permittee that are not effective on the date of this Permit. Permittee nonetheless agrees to comply with all such amended or newly effective Federal Security Regulations fully and promptly, and to immediately notify the County in writing if Permittee's compliance with any Federal Security Regulations will be delayed beyond applicable effective dates. 5.2.2 In the event that an FAA or TSA enforcement action is commenced against the County concerning the acts or omissions of Permittee, including its officers, employees, representatives,contractors and invitees,Permittee will be notified of such proceedings and provided an opportunity to participate therein.In the event that the County is assessed a fine or penalty by the FAA or TSA for breach of security regulations as a result of the acts or omissions of Permittee or any of its assigns, officers,agents,representatives, contractors or invitees, Permittee shall promptly reimburse County the full amount of any such fine or penalty. 5.3 Environmental Oualitv Improvement Plan (EOIPI 5.3.1 It is the policy of the County that all Airport tenants shall strictly comply with all applicable environmental statutes, rules and regulations and that preferences should be given, in all County procurement actions, administration of agreements and determinations on renewals, to tenants that consistently demonstrate awareness of environmental issues that arise during the term of any Permit and a proactive stance in dealing with such issues. 5.3.2 Promptly after the execution of this Permit,Permittee agrees to produce,for review and approval by the County,which approval will not be unnecessarily withheld, a proposed EQIP for its occupancy of the Premises and operations therefrom and then, upon approval by the County,to implement the same,which EQIP will include,without limitation,planning,management and operational policies and practices involving Permittee itself and its employees, and contractors, to reduce or eliminate environmental degradation in the areas of air pollution,water pollution,noise pollution, solid waste management and fuel and energy conservation.The preliminary EQIP for this Permit is set forth in Exhibit 4. io 5.4 Cleaning. Maintenance and Repair and Replacement Permittee, at its expense and at all times hereunder, shall clean and/or keep and maintain its Premises and portions of the Airline Terminal that it may use from time to time in conjunction with the provision of ticketing,passenger,and Ground Handling Services including all fixtures and equipment thereon in good order, condition, and repair, all as set forth in Exhibit 5. Permittee shall not cause or permit, by act or omission, any unkempt or disorderly condition upon or damage to other areas of the Airport Terminal interior, exterior, AOA,or groundside. 5.5 Utilities 5.5.1 Permittee shall, at its sole expense and in its own name, contract for the provision of all telecommunication service, and any other utilities not provided in common by the County and used by Permittee on or about its Exclusive Use Outdoor Area ofthe Premises.Permittee shall not permit any lien for unpaid utility use or services to be filed or maintained against the Premises. 5.5.2 Permittee shall not operate or install any equipment that will exceed or overload the capacity of any existing utility facility; if any equipment so operated or installed by Permittee shall require additional utility facilities, the same shall be installed and maintained at Permittee's expense in accordance with plans and specifications which have received prior written approval by County. 5.5.3 If the County is required to increase its water, sewer, gas or electric service and such increase requires a capital contribution from the County, Permittee, if it consumes the increased utility, agrees to pay a pro-rated, reasonably- amortized portion of said increase, which amount will be set by agreement or binding arbitration. 5.6 Snow Removal Permittee shall attend, by authorized representatives, any snow removal meeting called and conducted by the County prior to, during or after the winter season.Permittee shall move or relocate aircraft and vehicles,at the direction of the County,to assist County's snow removal obligations set forth below.Permittee shall further, at Permittee expense, be responsible for the removal of snow from its Exclusive Use Outdoor Area of the Premises that cannot readily be serviced by the County's snowplowing equipment in accordance with Section 7.3. 5.7 Trademarks. Trade Names Permittee represents that it is the owner of or fully authorized to use any and all trademarks, trade names, logos, names, slogans, copyrighted material, patents, services, processes, machines, or articles to be used by its in its operations under or in any way connected with this Permit. 5.8 &gal Permittee shall not place any signs upon the Premises, except of such size, type, design, and structure as shall be approved by County, provided, that County's approval shall not be unreasonably withheld.Any sign permitted by County shall at all times comply with all applicable ordinances, rules,and regulations. 11 5.9 Installations/Additions/Alterations/Improvements Permittee shall not undertake or permit any installations, additions, alterations, or improvements to the Premises without the prior,express written permission from the County,which permission, if given, shall include the following elements: 5.9.1 Identification of the scope and responsibility for any land-use or building permits required for the proposed installations, additions, alterations, improvements; 5.9.2 Approval by County of proposed drawings and specifications including, without limitation, requirements for professional certification stamps for any architectural/engineering portions of the installations/additions/alterations/improvements; 5.9.3 Reasonable approval by County of proposed contractors; 5.9.4 A plan, and responsibility for administration and costs of such plan, for changes in operational and security procedures during any construction period; 5.9.5 Provision for any adjustment of terms and conditions of this Permit; 5.9.6 Provision for the amortization and future ownership of the installations/additions/alterations/improvements; and 5.9.7 Provision for return of the Premises to original condition at the end of the Term hereof, including any adjustments to the Security hereunder, ordinary wear and tear excepted. 5.10 Waste Permittee shall not commit or allow any waste upon or in connection with the Premises. 5.11 Liens/Claims In connection with its occupancy and use of the Premises and Airline Terminal, Permittee shall not cause or permit any liens or claims against Airport property to be filed, recorded, maintained, foreclosed upon, or otherwise enforced and does hereby expressly indemnify the County against any liabilities, costs, or fees, including reasonable attorney's fees, relating thereto. 5.12 County Pro-Competition Policy Permittee will not engage or agree to engage in any unlawful restraint of trade or unlawful anti-competitive practices. 5.13 Assignment and Operations for Other Permittees 5.13.1 Permittee shall not assign or in any manner grant, convey, transfer, or encumber this Permit,any estate or interest therein,or any right or obligation of Permittee hereunder, or sublease the Premises or any part thereof, without the prior written consent of County, which consent shall not be unreasonably withheld. Provided that the foregoing shall not prevent the assignment of the agreement to any corporation with which Permittee may merge or consolidate, or sale substantially all of Permittee's assets. 5.13.2 In the event that Permittee is undergoing or proposing to undergo a 12 substantial change in operations, ownership or management not covered above, Permittee shall file with County any data that was filed with the U.S.Department of Transportation,pursuant to 14 CFR 204.1, 204.2 and 204.5, as the same may be amended, promptly after a request by County therefor, such requests by County to be made upon reasonable grounds(e.g., late payments,Permit renewals). 6. INDEMNITY AND INSURANCE 6.1 Permittee Indemnity 6.1.1 Permittee hereby agrees to,and further agrees to cause the Permittee Parties to release,discharge, indemnify and hold harmless the County from and against any and all liability for any and all losses resulting from any and all claims arising out of or in connection with any act, error or omission by Permittee or the Permittee Parties, including, without limitation, claims or losses resulting from, arising out of, or in connection with any release, spill, discharge, leak, disturbance,or disposal of Hazardous Materials in, at, under, or migrating from the premises due to Permittee's use or occupation of or activities on the Premises; provided, however, that such indemnity or release shall not be construed as an indemnity or release for loss arising from the negligence or willfully wrongful acts of County. 6.1.2 For purposes of this section"Permittee"shall mean the Permittee hereunder and"Permittee Parties" shall mean any parent companies, subsidiaries,joint ventures, shareholders, directors,officers,employees,agents,representatives,and contractors;and"County" shall mean the Permittor hereunder and any officials, employees, agents, representatives, and contractors. 6.1.3 For purposes of this section: "claim" shall mean any legal claim, notice of claim,demand,lien,lawsuit or other legal proceeding to cause or establish legal or financial liability; and "loss" shall mean any damages, penalty, judgment, expenses, costs (including costs of investigation and defense), fees (including reasonable attorney and expert witness fees) or compensation in any form or kind whatsoever, in connection with any claim for economic loss or personal injury, including without limitation property damage, bodily injury or death or injunctive relieve. 6.1.4 Further, Permittee further shall investigate, process, respond to, adjust, provide defense for, and defend, pay, or settle all claims, demands, or lawsuits related to its acts, errors,and omissions hereunder at its sole expense and shall bear all other costs and expenses,related thereto, even if the claim, demand, or lawsuit is groundless, false,or fraudulent. 6.2 Permittee Insurance Permittee shall secure and maintain for the entire Term of this Permit such insurance policies, from companies licensed to sell such policies in the State of Colorado, as will protect itself, the County (with the County named as additional insured), and others as specified, from claims for bodily injuries, death, personal injury,or property damage,which may arise out of or result from Permittee acts, errors, or omissions. The required Permittee insurance coverages, at or above the limits indicated and including such endorsements as are indicated by an"X",are listed on Exhibit 6. 6.3 County Insurance County shall procure fire, extended coverage and boiler 13 insurance covering the existing buildings,improvements,and facilities of the Airline Terminal for the full replacement value thereof. County also shall procure general liability and motor vehicle liability insurance policies covering its operations on the Airport. County shall maintain such insurance (or self-insurance, if permitted by law) during the Term of this Permit, and shall furnish Permittee, upon request, a copy of a Certificate evidencing such coverage. 7. OBLIGATIONS OF COUNTY 7.1 Operation of Airport For the term of this Permit, the County shall plan, operate, finance, and manage the Airport (including the Airline Terminal and the Public Airfield Facilities) in a prudent manner,consistent with the County's adopted plans and policies and customary professional Airport management practices, and shall, unless released in a writing signed by the Permittee, undertake the following obligations: 7.2 Utilities County shall, at its sole expense and in its own name, contract for the provision of all heat, water, gas, electricity,telephone service,trash removal and all other utilities provided in common or used in the Common Use Areas of the Airline Terminal. County shall further provide at its sole expense and in its own name, contract for the provision of all heat, water, gas, electricity, trash removal and all other utilities provided to the Exclusive Use Indoor Area of the Premises. 7.3 Snow Removal County shall annually call and conduct a snow removal meeting for all Airport tenants prior to the winter season.County shall,at County's own expense, but subject and secondary to County's obligation to maintain clear aircraft runways and taxiways and motor vehicle access roads on the Airport, remove the snow from those areas of the Airport which are open to public use and which are utilized for the passage, parking, and storage of aircraft and the passage and parking of motor vehicles in the same manner and extent as County performs snow removal on portions of the Airport in general, provided, that County shall not be required to move or relocate parked aircraft and vehicles to accomplish such snow removal. Further, County shall keep the public-access sidewalks and other pedestrian accessways on,to or from the Premises reasonably passable at all times, as weather conditions will permit. 7.4 Maintenance, Cleaning, and Repair 7.4.1 Subject to Permittee's primary obligation with respect to its Premises and Permittee's indemnities herein, the County, at its expense and at all times hereunder, shall clean, keep, and maintain, in good order and condition and repair, the structural and service elements of the Airline Terminal and the common use and non-exclusive use areas of the Airport, all as set out in Exhibit 5. 7.4.2 All requests by Permittee for performance by County hereunder, or notification to County of any dangerous or hazardous conditions to the Premises or to other Airline Terminal facilities or areas, shall be in writing and shall be made immediately after Permittee has 14 knowledge or has received notice thereof. 7.5 Ouiet Enjoyment County covenants that upon Permittee's timely and full payment of the rent and other fees and charges hereunder and Permittee's compliance with and performance of all of the terms, conditions, and obligations of Permittee hereunder,Permittee may peacefully and quietly have,hold,and enjoy the Premises for the Term of this Permit. 8. OTHER AGREEMENTS 8.1 Coordination with Others County and Permittee acknowledge that each has (or may undertake) rights and obligations arising from various third-party agreements with other Airport users. County and Permittee agree to cooperate with each other to effectuate these third- party agreements, so long as such agreements are not illegal, impossible or do not unreasonably interfere with or impair either Airport operations or Permittee's use or occupancy of the Premises.If either party shall make a request for co-operation of the other party under this provision,the requesting party shall,simultaneously with the request,provide copies of any agreements that are the subject of this request to cooperate. 8.2 Subjections. Exceptions and Reservations This Permit is subject to any present County agreements with the United States (which are typically through the Federal Aviation Administration (FAA)) and to any past, present or future statutes or regulations of the United States respecting the funding and/or operation of a public airport and to any terms, conditions or covenants of airport financing instruments existing on the effective date of this Permit. 8.3 Airport Master Planning and Land Use Planning 8.3.1 Permittee hereby acknowledges that the County has adopted, and the Permittee is subject to the following Airport Land Use and Transportation Planning documents and processes:Any Airport Master Plan adopted pursuant to Planning and Zoning Resolution 89-39 and Board of County Commissioners Resolution 89-19;an FAA-approved Airport Layout Plan("ALP"); a Land Use Identification Plan; any Land-Use Master Plan, adopted pursuant to the Pitkin County Land- Use Code (Public Zone District, Master Plan Option); Pitkin County planning documents, including the Aspen Area Comprehensive Plan and Aspen-2 Snowmass Transportation Plan,and the Highway 82 EIS; and certain projects specific land-use approvals, which contain certain executory conditions that constitute development regulations for and may affect the Premises; as any of the foregoing now exist or may hereafter be adopted or amended. 8.3.2 The documents and processes provide for potential changes to the Airport and the Premises during the term hereof. Permittee agrees to cooperate in the implementation of such plans, documents, and processes, and will make no claim against the County with respect to such implementation for other than any unforeseeable and/or unreasonable interference with Permittee business activities caused by such implementation. 15 8.3.3 Permittee further acknowledges that the County will, from time to time, amend and update such plans, documents, and processes, and agrees to cooperate with the County and/or its consultants, in providing such input and/or materials as may reasonably be necessary to complete any amendment or update project. 8.4 Compliance with Applicable Laws and Regulations In connection with its occupancy and use of the Premises and the conduct of operations thereon and therefrom,the Permittee shall: 8.4.1 Fully comply with all applicable laws, rules, and regulations, as such now exist or hereafter may be amended or promulgated, of the United States (including especially, the State of Colorado, and the County of Pitkin, and all departments and agencies thereof. The present adopted County Codes, plans, rules, and regulations, are the Pitkin County Code, including especially Title II(Land use Code),and Title X(Airport Regulations); Airport Security, Operations and Emergency Plans; and Airport Snow and Ice Control Plan. 8.4.2 Not discriminate against any person or class of persons by reason of race, color, creed, religion or national origin in providing any services or in the use of any facilities provided for the public in any manner prohibited by Part 21 of the Regulations of the Office of the Secretary of Transportation, and shall comply with the letter and spirit of the Colorado Anti- Discrimination Act of 1957, as amended, and any other laws and regulations respecting discrimination in unfair employment practices, and shall comply with such enforcement procedures as any governmental authority might demand that the County take for the purpose of complying with any such laws and regulations. 8.4.3 Fully comply, in the general operation of its business, with all applicable standards and compliance dates issued under or stated in the Americans with Disabilities Act ("ADA") and the Air Carrier Access Act (ACAA), and implementing regulations. The Permittee shall be responsible for structural compliance standards of improvements made by Permittee as defined under ADA Title III within its Premises only. Furthermore, the Permittee shall be responsible for providing passenger boarding assistance to individuals with disabilities as required by 14 C.F.R. Part 382 and 49 C.F.R.Part 27. 9. DEFAULT/TERMINATION/SURRENDER 9.1 Events of Default The following events are to be considered Incidents of Default hereunder: 9.1.1 Termination of Permittee's agreement with United Airlines, Inc.;or 9.1.2 Failure to make full and timely payment of rent, fees, or charges due and payable hereunder; or 9.1.3 The creation, maintenance, failure to correct or sufferance of a dangerous or hazardous condition on or emanating from the Premises; or 9.1.4 Failure to provide and maintain current all required types and amounts of 16 insurance and proof thereof; or 9.1.5 Making or becoming subject to a voluntary or involuntary petition or receivership or bankruptcy, declaration of insolvency or assignment the benefit of creditors;or 9.1.6 Abandonment of the Premises or failure to operate at or from the Premises as described hereof;or 9.1.7 Failure to comply with any other term, covenant, or obligation under this Permit. 9.2 Notice of Default The aggrieved party shall declare a default hereunder by delivering a written Notice of Default to the other party, which Notice shall specify the Incident(s) of Default asserted and a cure therefor acceptable to the aggrieved party,including the accrued and projected costs to the aggrieved party as a result of the default. 9.3 Right to Cure A defaulting party shall have the right to cure an Incident of Default, unless such party has abandoned the Premises, in which case it shall be deemed to have waived any right to cure. As a condition precedent to this right to cure, the defaulting party must provide Notice,promptly after the effective date of the Notice of Default, to the aggrieved party of the defaulting parry's intention to cure and whether it agrees with the proposed cure or has a counterproposal.The time periods for cure, after the effective date of any Notice of Default, shall be: 9.3.1 Within three (3) business days if the default is maintenance of a hazardous condition or failure to maintain and/or prove required insurance coverages;or 9.3.2 Within ten(10)calendar days if the default is failure to make full and timely payments hereunder; or 9.3.3 Within twenty(20)calendar days if the default is in the performance of any other obligation or conditions to be performed under the provisions of this Permit. If a cure acceptable to the aggrieved party is promptly undertaken and diligently pursued and the cure required cannot reasonably be completed within the foregoing time periods,the aggrieved party may, upon timely request and proof of such mitigating circumstances by the defaulting party, extend the period to cure by a reasonable time. In the event of multiple Incidents of Default,the cure periods above shall be concurrent,not consecutive. 9.4 Notice of Termination/Right to Re-Enter If such noticed default(s) shall remain uncured after the cure period specified,the aggrieved party may thereafter terminate this Permit by delivery of written Notice of Termination to the defaulting party, which Notice shall be effective on the date delivered to the defaulting party. Upon termination of this Permit,County may re-enter the Premises and remove all persons and property therefrom,as provided by law. 17 9.5 Remedy not Exclusive The parties shall have such other rights and remedies as may be provided for by law or in equity, including damages. 9.6 Surrender 9.6.1 Upon the expiration or termination of this Permit, Permittee agrees to peaceably surrender,deliver to County and leave the Premises;hereby waives any rights to statutory process concerning notice and eviction, agrees to remove all trade fixtures, personal property, equipment or improvements (removable by prior written agreement with the County) from the Premises, subject to the County's lien for delinquent fees and charges and Permittee's obligation to repair the Premises; and agrees to leave the Premises in an undamaged, trash-free, broom-clean condition. 9.6.2 Any property of Permittee or of anyone claiming under, by, or through Permittee, which is left on the Airport more than fifteen (15) days after expiration of this Permit or Termination of possessory rights shall, after notice of removal thereof by County, be conclusively deemed abandoned, and County may keep, use, remove, store, sell, destroy, discard, or otherwise deal with it in County's absolute discretion without liability of any sort to Permittee or anyone claiming under, by or through Permittee. 10. GENERAL PROVISIONS 10.1 Notices Except as expressly provided above, all Notices required or authorized to be given hereunder shall be in writing and shall be served upon the party addressed thereto either by certified mail,return receipt requested,to such party at the address appearing below (or at such other address as either party gives Notice to the other party in writing), or by personal service as provided for service of process in Rule 4,Colorado Rules of Civil Procedure,as amended.Any such Notice shall be deemed to have been delivered/received either:two(2)business days after the same has been properly deposited in the United States mail, with postage thereon fully prepaid, as aforesaid; or, on the date of personal service. 10.2 Entire Agreement This Permit contains the entire agreement of the parties and there have been no promises, representations, or agreements, either express or implied, except as expressly set forth herein.Any and all prior agreements or understandings between the parties are expressly agreed to have merged herein. 10.3 Severability The provisions of this Permit shall be severable and the invalidity of any provision hereof shall not affect the validity of any other provision. 10.4 Modification This Permit may be modified, amended, or supplemented only by an instrument in writing signed by the parties hereto and approved by the Board of County Commissioners at a duly noticed public meeting.While the County staff has the power to make operational and administrative decisions respecting the Airport, the County will not be bound to any modification, amendment or supplement to this Permit not approved and documented as provided herein. 18 10.5 Non-Waiver The failure of either party hereto to exercise any right or remedy hereunder shall not be deemed a waiver thereof or a waiver of the right to exercise the same at any future time, or the waiver of any other right or remedy hereunder. No waiver by either party of any right or remedy hereunder shall be effective unless in writing signed by the party. 10.6 No Presumption This Permit has been negotiated and agreed upon through the mutual efforts of the parties hereto and these parties have been represented by legal counsel (or have had the opportunity to obtain such representation); therefore, the parties agree that no legal presumption arising from the identity of the party drafting and producing this document is to be asserted or applied to the interpretation of any of the terms of this document, or any exhibit attached hereto. 10.7 Relationship of Parties The parties hereto acknowledge and agree that the legal relationship between them is that of County and Permittee and that this relationship and the resultant occupancy and use of the Airport is not to be asserted to be or construed to constitute any other type of legal relationship or entity,including a joint venture or a legal partnership. 10.8 Attorney Fees If either party hereto shall incur legal fees, expenses, or costs and/or shall commence legal action or institute legal proceedings to interpret, protect or enforce any of the rights, remedies or responsibilities set forth hereunder, the party prevailing in such legal action or proceedings shall be entitled to recover all of its expenses,costs,and fees in connection therewith,including its reasonable attorney's fees. 10.9 Governing Law and Venue This Permit shall be governed by, and construed in accordance with,the laws of the State of Colorado.Any action to enforce or interpret this Permit shall be brought in the United States District Court for the District of Colorado or in the Pitkin County District Court. 10.10 Effect of Permit This Permit shall be binding upon and shall inure to the benefit of the parties hereto and their respective lawfully appointed successors and assigns. 10.11 Headings The section headings contained herein are for convenience in reference and are not intended to define or limit the scope of this Permit. 10.12 Limitation of Benefit This Permit does not create in or bestow upon any other person or entity not a party hereto any rights or benefits.This Permit does not in any way represent, nor should it be deemed to imply any standard of conduct to which the parties expect to conform their operations in relation to any person or entity not a party. 10.13 Capacity to Execute The County and Permittee each warrant and represent to one another that this Permit constitutes the legal, valid, and binding obligation of that party. 19 10.14 Time is of the Essence Any approval required by either party to this Permit shall not be unreasonably withheld or delayed. 20 IN WITENSS WHEREOF,the parties have executed this License and Permit on the dates indicated in Aspen, Pitkin County, Colorado. PITKIN COUNTY: THE BOARD OF COUNTY COMMISSIONERS PITKIN COUNTY, COLORADO. ridt, S,&a----' ' Dec-21-2020 BY: Rich Englehart Date Interim Aviation Director Aspen/Pitkin County Airport BY: IA., Eli Dec-28-2020 John Ely Date Pitkin County Attorney PERMITTEE: SKYWEST AIRLINES, INC. BY: OWL Sf ikt Dec-28-2020 Wade Steel Date Chief Commercial Officer SkyWest Airlines, Inc. =- ATTEST: (SEAL) • Date Corp rate Se etary ?l MAILING ADDRESS (for Notices): Director of Aviation Wade Steel 0233 E.Airport Road, Suite A SkyWest Airlines, Inc. Aspen, Colorado 81611 444 S. River Rd. St. George, UT 84790 With copies to: Pitkin County Manager 530 E. Main St. Aspen, CO 81611 22 EXHIBIT 1 Aspen/Pitkin County Airport GROUND HANDLING SERVICES LEASE AND OPERATING PERMIT DEFINITIONS FOR USE IN AIRPORT LEASES,LICENSES AND PERMITS: INTRODUCTION: So far as the County is able to determine, there is no single set of standardized aviation terms available that define, for all relevant purposes, the various classes of commercial aeronautical operators,the various types of commercial aeronautical services and the various classification of land areas and building interiors that are used in providing air service. For example,various distinctions are made between the size of aircraft, frequency and regularity of flights and federal certificates required(e.g., scheduled Airline,commuter Airline, air taxi, air charter). Some distinctions are even within the control of the operators(e.g.,whether the operator chooses to qualify as a Part 121 or as a Part 135). For this reason,the definitions herein relate to the Aspen/Pitkin County Airport and are intended to control only the legal relationships established in written agreements between the County,(the Airport owner, operator, and FAA sponsor) and the commercial aeronautical operators at the Airport. To the extent that these definitions conflict with other definitions or distinctions,these definitions shall control these legal relationships. To the extent that other state or federal definitions or distinctions are not in conflict with these defmitions, they may be used to supplement these definitions. 1. Aeronautical Activity or Aeronautical Operation or Aeronautical Service. Any activity, operation or service that involves,make possible, or is required for the flight of aircraft, or that contributes to or is required for the safety thereof. Activities, operations or services commonly conducted on airports that are deemed to be Aeronautical Activities within this definition include, without limitation the following: the provision of scheduled Airline service to the public; aircraft charter operations; aircraft rental; aircraft management;pilot training;aerial sightseeing;aerial photography; aerial spraying; aerial surveying; aircraft sales and service; sale of aviation fuel and oil whether or not conducted in conjunction with other included activities; repair and maintenance of aircraft; sale of aircraft parts; and any other activities, services or operations which, in the sole judgment of Pitkin County, can, because of their direct relationship to the operation of aircraft, appropriately be regarded as an aeronautical activity, operation or service. Aeronautical activities are further defined as either: a. Commercial Aeronautical Activities,which are aeronautical activities offered or provided by a person or business entity to the public or to other aircraft owners, 23 pilots or operators with an intent to obtain compensation for the aeronautical activity offered or provided; or b. Non-Commercial Aeronautical Activities, which are aeronautical activities conducted by aircraft owners,pilots,or operators by and for themselves without the intent to obtain compensation for the aeronautical activity or operation conducted or service provided; Non-Commercial Aeronautical Activities may be part of or in support of a commercial venture, so long as the nature of the commerce is not a commercial aeronautical activity. 2. Airport Agreement. A written document creating mutual rights and obligations involving occupancy and use of the Airport that is signed by all parties, and approved by the County(through its Board of County Commissioners)pursuant to state law and the Pitkin County Home Rule Charter at a duly constituted public meeting. Typically, Airport Agreements come in one of three forms: a. A Lease is the Airport Agreement for the occupancy of Airport facilities of the highest legal gravity. Typically, a lease is offered by the County to tenants that have unique operational practices and requirements and is often characterized by long-term (in excess of one year) exclusive use and/or involves financing of major capital improvements. b. A License is an Airport Agreement for the occupancy and use of Airport facilities of lesser legal gravity than a lease. Typically, a license is the relationship offered by the County for the occupancy of Airport facilities characterized by a short- term (of up to one year)exclusive, shared, or non-exclusive use. c. An Operating Permit is an Airport Agreement for the use of Airport facilities and is often issued in connection with a lease or a license. 3. Airport. The Aspen/Pitkin County Airport(Sardy Field),Aspen, CO(ASE). 4. Airport Area Occupancy Designations. a. Public Airfield Area.A term referring to the Airport Runway(15/33);Public Airfield Facilities Taxiways and Taxilanes; and Public Airfield Facilities Ramp areas (other than the ramp or apron areas to or for which the County has previously, or by this Agreement, or may from time to time lease, assign or grant Exclusive or Preferential Use); and any extensions additions to the above and any other space or facilities produced by the County at the Airport and expressly so identified for public and common use by aircraft operators in connection with the landing and taking off of aircraft,or in connection with operations hereinafter authorized to be performed by aircraft operators upon the aforesaid Runways,Taxiways,Taxilanes and Ramp areas; but only as and to the extent that the same facilities are funded by grants from the Federal Aviation Administration (FAA) and are from time to time expressly designated by the County at the Airport for public and common use by the aircraft 24 operators. b. Airline Area or Airline End. A term referring to the southern half of the Airport (approximately); that part of the Airport occupied and used primarily by facilities for and operations of Scheduled Airlines (Parts 121 and 135) holding Certificates of Public Necessity; the Airline Area is separated from the General Aviation Area or General Aviation End of the Airport by a double yellow line at approximately A-5 on the Taxiway. c. General Aviation Area, GA Area or GA End. A term referring to the northern half of the Airport (approximately); that part of the Airport occupied and used primarily by facilities for and operations of general aviation, especially FBOs and S-FBOs and their customers; the General Aviation Area is separated from the Airline Area of the Airport by a double yellow line at approximately A-5 on the Taxiway. 5. Airport Area Use Designations.All land areas,buildings,facilities,and improvements on the Airport are designated as one of the following types of areas, with rights and obligations as defined herein: a. Common Areas. Those areas designated for use in common by certain classifications of Airport lessees, licensees, and permittees; for example, the non- secure waiting and circulation areas in the Airline Terminal. b. Exclusive Areas. Those areas designed for exclusive use,to the exclusion of others, by lessees or licensees. Exclusive areas may be shared by LLPs (Shared Exclusive Areas), pursuant to written agreement between the parties subject to the prior approval of the County. If so provided in its Agreement with the County, an LLP may occupy and/or use land areas,buildings, improvements, and facilities solely and to the exclusion of others for the term of such Agreement, as long as the LLP is not in default thereunder, subject only to the terms and conditions set forth therein and the provisions of controlling law. The grant by an Airport of an exclusive right to occupy or use real estate, which is permitted by federal regulation under certain conditions, is distinguished from the grant by an Airport of an exclusive right to conduct an aeronautical activity,which is forbidden by federal regulation. Exclusive Area also may mean that part of an Airport for which an Airline has agreed in writing with the Airport to exercise exclusive security responsibility under an airport security program. c. Expansion Areas. Those areas designated by the County for future use for expansion of aeronautical activities.The County reserves the right,in its sole discretion (consistent with good Airport operational and management practices and the Airport Master Plan) and without advance notice or compensation to any party, to limit or 25 regulate use or to lease as an exclusive area to third parties. d. Government Areas. Those areas designated for use by the County or the FAA for its operations; for example, the County Airport Operations Center (AOC), the FAA Air Traffic Control Tower,and the runway light system. e. Preferential Areas.Those areas designated by the County for use by LLPs on a preferential basis; that is, use on a first-priority basis subject to certain conditions including minimum use requirements and/or the County's right to withdraw the use or to require shared use,pursuant to the County's obligation to provide reasonable access to Airfield facilities to federally qualified operators. Preferential areas may also be shared by parties with existing rights therein, pursuant to written agreement between the parties and the County. If so provided in its written Agreement with the County, an LLP may occupy and/or use land area, buildings improvements and facilities solely and to the exclusion of others for the term of this Permit,as long as the LLP is not in default thereunder,subject only to the terms and conditions set forth therein, controlling law, and the right of the County to withdraw from such Permit all or part of such land area, buildings, improvements or facilities thereon,upon notice to the LLP,as provided in such Permit. f. Public Airfield Areas (a/k/a Public Airfield Facilities). Those areas designated for use by LLPs in common with other operators of aircraft for the following purposes:Runways,for the purpose of landing and taking off of aircraft;Taxiways and Taxilanes, for the purpose of ground movement of aircraft; and Ramp areas, for the purpose of unloading and loading passengers, baggage, freight, mail, supplies and cargo to and from the aircraft,together with the right to use designated portions of the ramps for delivery and pickup of freight, cargo, and mail by ground vehicles or other means and the right to reasonable use for it or its contracted vehicles servicing aircraft, and for the purpose of performing self-fueling and other ramp services. LLPs shall be entitled to use the Public Airfield.Areas in common with other public or permitted users, subject to compliance with the reasonable and non-discriminatory terms and conditions (including the payment of rates, fees and charges) upon which they are made available for such use and compliance with the reasonable rules and regulations prescribed by, or which may be prescribed by, the County with respect to the uses thereof including,but not by way of limitation,rules,regulations and directives relating to safety and security of the Public Airfield Areas. g. Public Areas.Technically,the entire Airport is public because it is owned and operated by a government entity and was acquired, developed, and is operated largely with public funds.However,public access to and use of this Public Airport is variously limited, as described in these definitions, by the operation of federal, state, and local statutes, case law,rules,regulations, and Agreements. h. Reserved Areas. All those areas not otherwise expressly designated by the County as defined hereinabove. 26 i. Shared Exclusive Areas. Those areas designated for exclusive use by two or more LLPS. 6. Airport Facilities Designations. Facilities is a catchall word, including buildings, pavement and other improvements, equipment and any personal property not included in the definitions of Buildings,Improvements and Equipment,describing materials to provide services, or to support the provision of services,to aeronautical and airport-related uses. a. Air Operations Area (AOA). The portion of the Airport within the security perimeter fence designated for aeronautical activities only, especially the storage (covered and uncovered; transient, short-term, and long-term) movement, servicing, taking off and landing of aircraft. b. Aircraft Parking Areas. The paved portions of the AOA identified and used exclusively for the uncovered, non-temporary parking of aircraft and incidental movement of Aircraft thereto and therefrom. c. Aircraft Staging Areas. The paved portion of the AOA and the Airline and General Aviation Areas identified and used for temporary parking of aircraft for the purposes of loading, unloading, line service and incidental movement to or from Aircraft Parking Areas. d. Apron. The paved portion of the AOA around the outside perimeter of a building or facility to a width of 15 feet. e. ARFF. An acronym meaning Airport Rescue and Fire Fighting. f. Building. A roofed, enclosed, heated, insulated non-temporary structure with a foundation and utilities. g. Equipment. Business or personal property used by a Commercial Aeronautical Operator in the provision of Commercial Aeronautical Services or Activities. h. FFEI. An acronym that stands for furniture, trade fixtures, equipment, and inventory, but includes all business and personal property that is not real estate that is used by a Commercial Aeronautical Operator in revenue-producing activities (excluding aircraft). i. Fixtures.As distinguished from trade fixtures,fixtures are property used by a Commercial Aeronautical Operator that are attached to real estate and are not intended to be removed upon the end of a tenancy unless otherwise agreed by the parties. j. GA Facilities. Public-use facilities on the Airport primarily to serve General Aviation aircraft and passengers and S-FBOs, e.g.Aviation Fuel Farm,T-hangars, S- FBO facility. 27 k. Groundside Area (Groundside). The portion of the Airport outside the security perimeter fence designated for non-aeronautical activities in support of the Airport's aeronautical activities including,without limitation,passenger ticketing and waiting, baggage, loading and pickup, motor vehicle circulation and parking, ground transportation (rental cars, taxis, limousines, buses, and hotel/lodge/condo vans) and non-aeronautical passenger services (food/beverage, gifts,telephones). I. Hangar. An enclosed structure designed and used for the storage of Aircraft and items necessarily incident to aeronautical operations. m. Improvements.The products of the expenditure of funds relating to real estate that are not Buildings or Facilities including, without limitation, pavement, utilities, and drainage structures. n. Public Airfield Facilities. The paved portion of the AOA excepted from the areas leased to the Airlines and the FBO(s) consisting of the runways, taxiways and designated taxilanes. o. Ramp. The paved portion of the AOA identified and used exclusively for the staging,storage and incidental movement of aircraft including Aircraft Parking Areas and Aircraft Circulation and Staging Areas. p. Runways. The paved portions of the AOA and the Public Airfield Facilities identified and used exclusively by aircraft for taking off and landing and taxiing immediately before and immediately after takeoffs and landings. q. Security Identification Display Area, (SIDA) . That part of the AOA that is reserved exclusively for use by Airlines and requires a security clearance for unescorted access by persons and vehicles. r. Taxilanes. The paved portion of the AOA identified and used exclusively for the movement of aircraft to and from the Public Airfield Facility Taxiways from the Airline and General Aviation Areas and for internal circulation of aircraft within those areas. s. Taxiways. The paved portion of the AOA and Public Airfield Facilities identified and used exclusively for the movement of aircraft to and from the Runways from the Airline and GA Areas. t. Terminals. Buildings identified on the Airport Master Plan, as amended, for use in Airline and General Aviation commercial operations as the connecting point between the Groundside and the AOA between aircraft and passengers; includes all vertical walls and openings. u. Trade Fixtures. Business or personal property used by a Commercial Aeronautical Operator that is attached to real estate but is intended to be removed upon the end of a tenancy unless otherwise agreed by the parties. 28 v. Turnoffs. The paved portions of the AOA and the Public Airfield Facilities identified and used exclusively by aircraft for transition between the runways and the taxiways. 7. Airport Rescue and Firefighting. See ARFF, above. 8. Airport Revenue Bonds. Financial lending instruments that are the product of a process to fmance redevelopment, development, and capital improvements on the Airport by the issuance of municipal bonds(usually tax-free)that are repaid from and secured by Airport revenues.As part of a Bond issue,the Airport makes certain representations with respect to the management, operation, and financing of the Airport (official Statement) and undertakes certain responsibilities (Bond Covenants). 9. Airline.A Commercial Aeronautical Operator holding an operating certificate issued by the Federal Aviation Administration (FAA) of the U.S. Department of Transportation, pursuant to Federal Air Regulation (FAR) Part 121 or Part 135, and operating under a published or non-published schedule,pursuant to a Certificate of Public Necessity. 10. Airline Designations. a. Non-Signatory Airline.An Airline that does not qualify(or has not yet qualified) as a Signatory Airline, but that occupies and uses the Airport Airline Terminal and associate land areas and facilities pursuant to a written Agreement with the County. b. Requesting Airline.An Airline that is qualified to request occupancy and use of the Airport Airline Terminal and associated land areas and facilities by having filed a complete application under the Airport's then-current Airline Terminal Access and Space Allocation Policy. c. Signatory Airline.An Airline that meets the following minimum requirements: i. Has entered into a written Lease and Use Permit with the County,with a term of at least one year, for the occupancy and use of the Airport Airline Terminal and associated land areas and facilities; and ii. Undertakes to provide and does provide scheduled Airline service of at least one flight daily on a year-around basis, and/or on a multi- seasonal basis; and iii. Agrees to pay Airport rents,fees,and charges on a compensatory basis; and iv. Has, in the sole discretion of the County, operated satisfactorily (e.g., with no defaults or notices of non-compliance) under a County Lease for at least one full Operations Year (January - December), or has provided extraordinary performance security in support of the obligations of a Signatory Airline. 29 11. Airport Master Plan. The planning document that is commonly referred-to as the Airport Master Plan is in fact two separate Master Plans, as follows: a. Airport FAA Master Plan. The Airport Master Plan adopted by the County pursuant to federal regulations and procedures as a pre-requisite to federal funding of Airport improvements. 12. Airport LLPs or ALLPs. An acronym meaning Airport Lessees, Licensees and Permittees. Those persons or business entities holding current written Agreements with the County(variously structured as leases, licenses or operating permits,or combinations thereof)to conduct commercial operations at or from the Airport. 13. Commercial Floor Area. As further defined in the Pitkin County Land Use Code, as amended, Commercial Floor Area is interior habitable space, used or designed for commercial purposes, which has growth impacts (employees, traffic generation, consumption of utilities, etc.). 14. County. Pitkin County, a home-rule County organized under the laws of the State of Colorado, as represented by its duly elected Board of County Commissioners (BOCC). By law,the County may only bind itself(by Motion,Resolution,or ordinance)pursuant to a formal vote at a duly constituted public meeting. 15. County Representative. The BOCC may be represented in matters affecting the Airport by its designee,the County Manager, or the County Manager's designee,the Director of Aviation, or the Director of Aviation's designee, as indicated in writing. 16. Date of Beneficial Occupancy (DBO). A date specified by the County on which an Airport LLP begins revenue-producing activities at or from the Airport. For newly constructed facilities, the DBO occurs after Substantial Completion and may be on or after the issuance of a Certificate of Occupancy. 17. Director of Aviation. The County Representative for purposes of operational and administrative decisions at the Airport. 18. Emergency. A situation or set of circumstances involving the Airport that presents existing or imminent threat of substantial harm to life or property. An emergency may be apparent or declared by the Director of Aviation or his designees or, in his absence, by authorized ARFF, fire, emergency response or law enforcement personnel. 19. Enterprise Fund. An accounting device and financing process whereby all Airport revenues and expenses are considered as one fund and not commingled with other County revenues and expenses. The Airport has adopted the Enterprise Fund concept in part to come into compliance with FAA Grant requirements that the Airport charge sufficient revenues to be self-sustaining and that all Airport revenues be used for Airport-related purposes. 20. Environmental Quality Improvement Plan (EQIP). A written plan incorporated into 30 an Airport Agreement, that identifies existing and potential environmental hazards and plans for the reduction or elimination of environmental degradation caused by operations arising from the occupancy and use of Airport facilities pursuant to the Agreement. 21. Equitable Adjustment. A temporary or permanent adjustment in the revenue and/or the expense structure of an Airport lease, license or permit that is negotiated by the parties thereto in response to some future change in circumstances specified in the lease, license, or permit. An Equitable Adjustment may provide for a net decrease in the rent, fees or charges owed to the Airport by the LLP and/or a decrease in the obligations of the LLP. An Equitable Adjustment is to be the minimum adjustment that is commercially reasonable to respond to the change in circumstances. 22. Exclusive Right. A power, privilege or other right excluding or declaring another from enjoying or exercising a like power, privilege, or right. An exclusive right may be conferred either by express agreement, by imposition of unreasonable standards or requirements, or by any other means. Such a right conferred on one or more parties, but excluding others from enjoying or exercising a similar right or rights, would be an exclusive right. The grant by an Airport of an exclusive right to conduct an aeronautical activity, which is forbidden by federal regulation, is distinguished from the grant by an Airport of an exclusive right to occupy or use real estate,which is permitted by federal regulation under certain conditions. 23. FAA. Federal Aviation Administration, Department of Transportation, United States Government. 24. FAA Facilities. Those facilities leased, constructed, used, or occupied by the FAA, including the FAA ATC Tower, ATCRBS Bank Building and related facilities. 25. FAA Grant Agreements. The written agreements between the County and the FAA, issued by the FAA and accepted by the County as conditions of receipt of federal airport redevelopment and development funding,that set forth certain contractual obligations of the County to FAA with regard to the planning, financing, and operation of the Airport. 26. FAR. A Federal Aviation Regulation promulgated by the FAA. 27. FBO Facilities. Public-use facilities on the Airport primarily to serve the customers of a fixed-base operator, g., GA Terminal, Main Storage Hangar, Maintenance and Repair Shop/1Iangar. 28. Fixed Base Operator(FBO). As more fully defined in Airport's Minimum Standards, a Commercial Aeronautical operator that maintains facilities at an airport for the purpose of: a. engaging in the retail sale of aviation fuels primarily to purchasers other than (1) scheduled or supplemental Airlines,or(2)the Department of Defense; and 31 b. performing the minimum aggregation and level of the following aeronautical activities and/or services: retail fuel sales, maintenance, servicing,parking, tie-down and storage. An Operator that provides at least the minimum required aggregation and level of facilities, activities, and services, including the retail sale of aviation fuel, is classified as a full-service Fixed Base Operator (FBO); an Operator that provides less than the minimum required aggregation of facilities, activities and services and does not provide the retail sale of aviation fuel, is classified as a Specialized Fixed Base operator(S-FBO). 29. Fueling Operation(s)The receipt, storage, or delivery of Fuel for Aircraft at the Airport. 30. General Aviation (GA). The classification of Airport uses involving either non- aeronautical commercial aircraft and uses, or aeronautical commercial aircraft and uses under FAR Part 91 and 135 that do not provide scheduled service or require an FAA Certificate of Public Necessity. 31. Ground Handling Services. Means air conditioning, ground power, baggage handling, communications access, towing, minor maintenance, and other services needed to maintain and operate United Airlines, Inc.,and its affiliated airline's aircraft. 32. Handling Agreement. A written Agreement, approved in advance by the County, between a Signatory Airline and a Requesting Airline,for the Signatory Airline to provide certain services necessary to support the provision of scheduled commercial air service to the Airport by the Requesting Airline. 33. Lease Year,License/Permit Year or Operations Year.A lease year or operations year hereunder shall be as specified in an Airport Agreement or, if not specified, a calendar year commencing on January 1. 34. Permittee. The Ground Handling Services Company named on the signature page as executing this Permit. 35. Permit. This Ground Handling Services Operating Permit between County and Permittee, as the same may be amended, modified,or altered from time to time pursuant to the terms hereof. 36. Person. An individual, firm,partnership, corporation, company, association,joint-stock association, or govermnental entity. It includes a trustee, receiver, assignee, or similar representative of any of them. 37. Premises.Certain identified Airport land areas,buildings,and facilities,collectively,that are occupied and used by a Signatory Commercial Aeronautical Operator pursuant to an Agreement with the County. 38. Procurement Action. An administrative process, undertaken by the County pursuant to its then-current Procurement Code, for the public solicitation and competitive selection 32 of a provider of goods or services to or through the County. 39. Repair and Replacement. The procedures necessary to correct damage to any fixtures, trade fixtures or equipment caused by casualty or passage of time, in order to return such damaged items to the same condition as when initially installed and/or constructed, ordinary wear and tear excepted. All repairs made shall be at least equal in quality to the original improvements constructed. 40. Retail Fuel Sales. The conduct of Fueling Operations by a Person for money or other valuable consideration(present,past or future)including services of any kind whatsoever. 41. AS-FBO Facility. A separate building containing separate aircraft hangars, staging, and parking areas,and supporting administrative,reception and storage areas for the operation of S- FBOs. 42. Self-Fueling Operations. The conduct of Fueling operations by a Person for its own Aircraft, using its own equipment and by its own employees. 43. Signatory Airport Operators. General Aviation Commercial Aeronautical Operators holding valid,then-current written leases, licenses or permits from the County to conduct and/or provide Aeronautical Activities or Services. 44. Specialized Fixed-Base Operator or S-FBO. As more fully defined in the Minimum Standards, a Commercial Aeronautical Operator that is permitted by the County to provide one or more Aeronautical Activities or Services at or from the Airport,but fewer than the minimum aggregation of facilities,activities and services required to be qualified as an FBO. An Operator that provides at least the minimum required aggregation and level of facilities, activities, and services, including the retail sale of aviation fuel, is classified as a full-service Fixed Base Operator (FBO); an Operator that provides less than the minimum required aggregation of facilities, activities and services and does not provide the retail sale of aviation fuel,is classified as a Specialized Fixed Base Operator(S-FBO). 33 EXHIBIT 2 Aspen/Pitkin County Airport Ground Handling Lease and Operating Permit SkvWest Airlines,Inc. Current Premises,Fixtures and Equipment: 2.1.2 Airline Terminal. 2.1.2.1 Exclusive Areas: (319 sq. ft.) (Maroon) a) Ticketing counter, Ancillary Administration, Passenger Service and Signage Areas: b) Passenger Ticketing Queuing Areas: c) Baggage Makeup Area: (including baggage conveyor belt and access doors) d) Administration and Operations Areas. e) Baggage Service Office f) Passenger Service Podiums. g) Baggage Cart Unloading Area. 2.1.2.2 Preferential Use Areas: (0 sq. ft.) a) Gate Podium, Ancillary Administration, Passenger Service and Signage Areas(including counter shell and digital signage) b) Parts/Utility Room c) Curbside Baggage Belt 2.1.2.3 Shared Exclusive Use Areas: (0 sq. ft.) a) Central Passenger Services Area b) Passenger Security Gate and Securing Area c) Secured Passenger Holdroom/Boarding Area 2.1.2.4 Common Areas: Non-exclusive areas designated as "common areas"in and around the Terminal consisting of: 1) Motor vehicle access roads; 2) Motor vehicle parking lots (public and employee); 3) Curb (for passenger/baggage loading/unloading); 4) Paved sidewalk/passenger loading/unloading areas; 5) Pedestrian accessways, doors and vestibules; 6) Corridors/ramps; 34 7) Lobbies/passenger waiting areas; 8) Public restrooms; 9) Exterior landscaped/seating areas. 10) Existing vacant FID cabinets, if any. 2.1.3 Airline Terminal SIDA 2.1.3.1 Exclusive Use Outdoor Areas: (479 sq. ft.)(Maroon) a) Outdoor Covered Space. b) Ground Service Equipment Staging Area. 35 EXHIBIT 3 Aspen/Pitkin County Airport Ground Handling Services Lease and Operating Permit SkyWest Airlines,Inc. FY 2020 RATES AND CHARGES (July—December 2020) 3.1. Rents,Fees, and Charges 3.1.1 Occupancy and Use of Airline Terminal interior,AOA, and groundside: (interior based on$82.86 per sq. ft., exterior based on $27.62 per sq. ft.) 3.1.2 Exclusive Use Indoor Areas: $26,432.34 annually; $2,202.69 monthly. 3.1.3 Preferential Use Areas: $0.00 monthly or$0.00 for six months 3.1.4 Exclusive Use Outdoor Areas: $13,229.98 annually; $1,102.49 monthly. 3.1.5 Shared Exclusive Use Areas: $0.00. 3.1.6 Use of Public Airfield Facilities(Landing Fees): $0.00 36 to - m ,C o x7 I `i CA ri- = w > D) > r�� a m o�� N "co 1 = (D � p -� - • N ={� � 1- g k %f - uu .-.7 CD e a cla • ki p a i 4'4• l is_ .1--, 6 ry 0 A 0.-„52. ji I 13 a CD p ill.'-',' 'sill . lis ff ' M lmilig i OA n y irA CD e �, 4 , s jsy�it -i ,', '/ _ I Der 1( _ it' a gi b m Z K;" a 4 ' Nv—ii. C \ ,-,-, _. _, co .. . c',...„-, 3 \ bin. 0 44 an b C - _ '�A� 5 c rn ._ , __ D o r O A i 0. ..„ n • ��u • _„_,..,„ �l= n t ::,',i,/. �F („_.,... ........,.., _ ...._..... .. j SI 1.• \,,, . , /, • c An G < m z I ; 1 m N III il m 0 m _�--�-. - `-. ...._. ._..__,,. __. - m F -‘) o 1, • o �o m• m A a a m > - - I I 1 • A A 1----4 1 _1 ! Prl Fri ______1--- .....( . L .., ri i....„ _,. .i,D a v * ASPEN AIRPORT TERMINAL _- ERE1 o - { ggmi A gar. F 1 �� N 233/249 AIRPORT RD. a z g ; ■ 1 AS?EN.CO EXHIBIT 4 Aspen/Pitkin County Airport Ground Handling Services Lease and Operating Permit SkyWest Airlines,Inc. ENVIRONMENTAL QUALITY IMPROVEMENT PLAN ("EQIP"). With respect to the Permit between the County and Permittee,the EQIP for Permittee shall have the following elements, consistent with federal law, the County's statutory and contractual obligations to the Federal Aviation Administration, and Title X of the County Code: 1. Air Pollution. Permittee shall take the following steps to reduce particulates and emissions(including,without limitation, CO, CO2 CFCs and PM-10): a. None at this time. 2. Water Pollution and Conservation. Permittee shall take the following steps to reduce actual or possible water pollution and to conserve water usage: a. Comply with the Airport's adopted drainage and Storm Water Management Plan b. Identify and Comply with fuel spill procedures as required by applicable law 3. Noise Pollution.Permittee shall take the following steps to reduce the impact of noise on the Airport and the surrounding residential and commercial communities: a. Aircraft noise abatement procedures, as provided in Title X b. Allowed hours of operation, as provided in Title X 4. Solid Waste Management. Permittee shall take the following steps to reduce the present and possible future impacts of solid wastes: a. Recycling 1) Avoidance of purchases with excessive packaging 2) Re-use of materials whenever possible 37 3) Purchase of recyclable material 4) Recycling of all recyclable materials b. Handling, storage, and disposal of hazardous materials 5. Fuel and Energy Conservation.Permittee shall take the following steps to conserve fuel and energy in its operations: a. Reduction in aircraft and motor vehicle traffic congestion b. Avoidance of excessive consumption of fuel c. Avoidance of fuel transfer and storage loss d. Limitation on aircraft idling, as provided in Title X N.B.: The County acknowledges that the above-listed elements are organized as a matter of convenience and that a number of operational practices have impacts in multiple elements, e.g., a decrease in motor vehicle traffic congestion could decrease air pollution, the risk of water pollution,the risk of handling hazardous materials and the excessive use of fuel. 38 EXHIBIT 5 Aspen/Pitkin County Airport Ground Handling Services Lease and Operating Permit SkyWest Airlines,Inc. CLEANING,MAINTENANCE AND REPAIR OF PREMISES AND MAINTENANCE, REPAIR AND REPLACEMENT OF FIXTURES AND EQUIPMENT. As used in the Permit and this Exhibit: The structural elements of the Airline Terminal consist of the foundation, bearing walls, roof, and exterior surfaces. The service elements of the Airline Terminal consisting of water and sewer service, including plumbing fixtures; electrical service, including lighting; and heat and ventilation (all to the boundary of Permittee's Premises). The common use and non-exclusive areas of and relating to the Airline Terminal consist of lobbies/passenger waiting areas; public restrooms; corridors/ramps;pedestrian accessways, doors and vestibules;motor vehicle access roads;motor vehicle parking lots(public and employee);curb (for passenger/ baggage loading/unloading); paved sidewalk/passenger loading, unloading areas; and exterior landscaping/seating areas. "Cleaning" shall mean daily pickup and disposal of trash and litter and cleaning(periodically or as indicated)of floors, furnishings, fixtures,trade fixtures, equipment, interior surfaces,and glass. "Maintenance," with respect to Premises, shall mean procedures necessary(daily, periodically, or as indicated)to monitor and keep the interior and exterior surfaces in an attractive condition, and in constant good order and in the same condition as when initially constructed, ordinary wear and tear excepted and to prevent deterioration of structural elements,roofs,and the interior and exterior surfaces. "Repair" with respect to Premises, shall mean the procedures necessary to correct damage to any improvements caused by casualty, in order to return such damaged areas to the same condition as when initially constructed. All repairs made shall be at least equal in quality to the original improvements constructed, ordinary wear and tear accepted. "Maintenance"with respect to Fixtures and Equipment,shall mean the procedures necessary(daily, periodically,or as indicated)to monitor and keep the fixtures and equipment in good working order. At the end of the Permittee's occupancy and use of the Premises hereunder, the Permittee is responsible for returning all Airport fixtures and equipment used by it to the County in good working order and in a condition as good as, or better than,received at the beginning of such occupancy and use, ordinary wear and tear accepted. 39 "Repair and Replacement," with respect to Fixtures and Equipment, shall mean the procedures necessary to correct damage to any fixtures, trade fixtures or equipment caused by casualty or passage of time, in order to return such damaged items to the same condition as when initially installed and/or constructed. All repairs made shall be at least equal in quality to the original improvements constructed. 40 EXHIBIT 6 Aspen/Pitkin County Airport Ground Handling Services Lease and Operating Permit SkyWest Airlines,Inc. COUNTY LICENSE/PERMIT MINIMUM INSURANCE REQUIREMENTS: 1. Forms, limits, deductibles, and endorsements. a. Statutory Worker's Compensation with Statutory State of Colorado minimum limits. Employers' Liability Insurance with limits of no less than$1 million per occurrence for bodily injury or disease. A Waiver of Subrogation in favor of Pitkin County shall apply as allowed by law. b. Commercial General Liability insurance on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal and advertising injury with limits of no less than$5 million per occurrence. Pitkin County shall be named as an Additional Insured"as our interests may appear" on the Commercial General Liability policy and coverage shall apply on a primary and non-contributory basis. Any insurance or self-insurance maintained by Pitkin County,is officers,employees,or volunteers shall be excess of Permittee's insurance and shall not contribute with it. c. Commercial Automobile Liability Insurance covering any owned, hired, or non- owned auto with limits of no less than $5 million per accident for bodily injury and property damage. d. Property Insurance shall be obtained and maintained by Permittee with limits of not less than $1 million or value of all real property being leased, including betterments and improvements owned by Pitkin County. Pitkin County shall be named as a Loss Payee. Permittee shall also provide fire insurance on all personal property contained within or on the leased premises. The policy must be written on an"all risks"basis, excluding earthquake and flood. The contract shall insure for not less than ninety (90) percent of the actual cash value (ACV) of the personal property and Permittee shall name Pitkin County as an Additional Insured on such policy. Insurance shall be placed with insurers authorized to conduct business in the State of Colorado with a current A.M. Best rating of no less than A:VII. 2. Certificates of Insurance. 41 To provide evidence of the required insurance coverages, copies of Certificates of Insurance in a form acceptable to the County, and copies of required endorsements,shall be filed with the County(through the Director of Aviation and Department of Risk Management)no later than ten(10)calendar days prior to commencement of operations at,to,or from the Airport, and within 30 days upon renewal of any policy. Failure to file or maintain acceptable Certificates of Insurance with the County is agreed to be a material breach of any lease, license or permit and grounds for termination thereof. Failure to obtain the required documents prior to the inception of the contract shall not waive the Permittee's obligation to provide them. These Certificates of Insurance shall contain a provision that coverage afforded under the policies will not be canceled or adversely materially altered unless at least thirty (30) calendar days, except ten (10) calendar days as respects non-payment of premium, written notice. Permittee shall require and verify that all subcontractors/contractors engaged by Permittee to perform work at Aspen/Pitkin County Airport shall maintain insurance meeting all requirements stated herein, and Permittee shall ensure that Pitkin County is an Additional Insured on insurance required by from subcontractors/contractors. The required limits of liability may be provided by a combination of primary and excess (umbrella) policies, but in no event shall the total limits of liability available for any one occurrence or accident be less than the amount required.