HomeMy WebLinkAboutResolution - 3968 - Addendum To Airline Lease Agreement - Continental Express - FAA, FAR Cost Fees - 09_24_1992L
Resolution No. 3968
September 24, 1992
Item 1123
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock Addendums to
Airline Lease Agreements with American Airlines and Rocky Mountain Airways,
Inc. d/b/a Continental Express, attached herewith, which shall be spread
upon the minutes of the Council and as spread upon the minutes of this
Council shall constitute and be a part of this Resolution as if fully copied
herein in detail.
Passed by the City Council this
ec
APP YED AS TO CONTENT:
ern ase, Director o Aviation
APPROVED AS TO FORM:
Al
Harold iar , Assistant City
Attorney
HH:dw/Agenda-D2/Addndms.tes
August 28. 1992
Resolution No. 3968
September 24, 1992
Item #23
ADDENDUM NO. 1
TO AIRLINE LEASE AGREEMENT
BY AND BETWEEN
THE CITY OF LUBBOCK, TEXAS
AND
ROCKY MOUNTAIN AIRWAYS, INC.
D/B/A CONTINENTAL EXPRESS
WHEREAS, the City of Lubbock, Texas, hereinafter referred to
as "City," and Rocky Mountain Airways, Inc., d/b/a Continental
Express, hereinafter referred to as "Lessee," executed an
Agreement on or about May 1, 1990, in which Lessee agreed to
lease from City space and facilities in the terminal building at
Lubbock International Airport sufficient to conduct its business
of air transportation at said Airport; and
WHEREAS, both City and Lessee, pursuant to Article VIII of
the above -referenced Agreement, have in good faith renegotiated
certain charges for the use of such space and facilities in the
terminal building, and desire to amend the Agreement executed on
or about May 1, 1990, to reflect such renegotiated charges;
NOW THEREFORE, the Airline Lease Agreement hereinabove
referred to is hereby amended as follows:
1. Article VII of said Agreement is hereby amended by
adding Section 7.08 thereto, which shall read as follows:
Section 7.08 - Airport Security Fee
Notwithstanding any other provision contained in this
Agreement, Lessee herein agrees to pay City on a monthly
basis Lessee's proportionate share of the total operational
costs related to compliance with 14 C.F.R. Part 107
according to the following formula, to wit: 20% of the
total charges shall be divided equally among all
Certificated Passenger Air Transportation Companies and the
remaining 80% prorated based on each such carrier's
percentage of enplanements in the preceding month.
Effective October 1, 1992, the fee jointly charged to
Lessee and all other air carriers at the Airport for the
operational costs related to compliance with 14 C.F.R. Part
107 shall be $5.93 per sq. ft. per year for 45,942.222
square feet of common boarding lounge area, and Lessee
agrees to pay its pro rata portion of such fee according to
the above formula. This fee is based on the total estimated
costs projected by the City and the air carriers as
necessary for compliance with 14 C.F.R. Part 107 in 1992, a
copy of which estimate is attached hereto as Exhibit No. 1
and incorporated herein by reference, and the amount of
square footage of common boarding lounge area being utilized
by Certificated Passenger Air Transportation Companies at
the Airport at the time the estimate was prepared.
The total actual operational costs incurred by the
Airport each year in complying with 14 C.F.R. Part 107 will
be reviewed at the end of each such year by Lessee and the
Director of Aviation and a pro rata adjustment made for
either overpayment or underpayment of the fee necessary to
defray all such actual costs.
City herein agrees to immediately adjust the rate
charged to Lessee and other air carriers for any reduction
in personnel whose positions are funded by the fee
hereinabove discussed and for any other material changes in
the total estimated costs projected by the City and such air
carriers annually as necessary for compliance with 14 C.F.R.
Part 107. City further agrees to establish a separate fund
or account in which to maintain fees received from Lessee
and other air carriers pursuant to this Section 7.08, and
that all records indicating payments into and expenditures
from this fund or account shall be subject to review by
Lessee and such other air carriers.
egrmz/uonrinenrai
Page 2
2. All other terms and conditions of the Agreement executed
between the City and Lessee on or about May 1, 1990, except as
modified above, shall be and remain the same. However, as a
debtor in possession under Chapter 11 of the United States
Bankruptcy Code, Lessee neither affirms nor rejects such
Agreement by executing this Addendum.
/� 1E',ZECUTED this 24th day of September , 1992.
BY:
R. JANGgTON,
ST:
Ran tt Boyd,. City Secr ary
APPROVED AS TO CONTENT:
6-11
Bern Case, Director of Aviation
APPROVED AS
TO FORM:
&� �4- �� / i'� -
arold W llard, Assibtant
City Attorney
HW:dw
cont-agr/D#4/A-Contn1.doc
ROCKY MOUNTAIN AIRWAYS, INC.
D/B/A CONTINENTAL EXPRESS
SAM ASHMORE, SR. VICE PRESIDENT
CIVIC & AIRPORT AFFAIRS
ATTEST: ,,
Page 3
Personnel
Salary
Security Coordinator 26,898
Electronics Tech. 25,875
Systems Operators
Transfer Current 3
1 @ :17909 .+ 6241 = •24,050 '
1 @" 15309 + 5315="20,624
1 @ 13478 + 3646 = 17,124
Additonal for 24 hr/7 day operation
3 @ 17,124
TOTAL PERSONNEL
supplies
Office Supplies 750
Cleaning Supplies 150
other Eq. Supplies _ 500
Other Office Supply 450
ASC Uniforms 350
TOTAL SUPPLY
Maintenance
Benefits
Total
7,743
$34,641
71503
$33,378
$61,798
$51,372
$181,189
$2,200
System Operating and Maintenance costs are
unknown until February 1993 when 6 months
operating expence will be available. Estimate $75,006
Other Expenses
Professonal Serv: Service Calls (5) 5,000
Car Allowance Sec. Coordinator 3,000 ,
Uniform Cleaning - Tech. 351
Rent Equipment - copier 1,500
Office Equipment Serv. Contracts. 1,600
TOTAL OTHER $11,451
SUB TOTAL OPERATING EXPENSE $269,840
Office Equipment
Capital Expense -office furniture and equipment 13,000
5 years = 2,600 per year. $2,600
TOTAL INITIAL .ANNUAL OPERATING EXPENSE $272,440