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HomeMy WebLinkAboutResolution - 4110 - Lease Agreement Addendums - SWA, & AA - Terminal Facilities, LIA - 03_25_1993Resolution I No. 4110 March 25, 1993 Item #24 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 Addendum No. 1 and Addendum No. 2 to an Airline Lease Agreement by and between the City and Southwest Airlines Co. and Addendum No. 3 to an Airline Lease Agreement by and between the City and American Airlines, 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 ATTEST: Betty M. Johnson, City Secretary APPROVED AS TO CONTENT: ern L. Case, erector o v1ation APPROVED AS TO FORM: arold Willard, Assistant City Attorney BW:da/AGENDA-D1/A-SWAMER.re5 March 16. 1993 Resolution No. 4110 March 25, 1993 Item #24 ADDENDUM NO. 1 TO AIRLINE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK, TEXAS AND SOUTHWEST AIRLINES CO. WHEREAS, the City of Lubbock, Texas, hereinafter referred to as "City," and Southwest Airlines Co., hereinafter referred to as "Lessee," executed an Agreement on or about June 22, 1989, 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 June 22, 1989, 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 June 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. On January 1 of each year hereafter for the remainder of this Lease, the fee for the operational costs related to compliance with 14 C.F.R. Part 107 shall be adjusted upward or downward in accordance with the increase or decrease in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Government. Also, 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. Agrmt/Southwest Page 2 2. All other terms and conditions of the Agreement executed between the City and Lessee on or about June 22, 1989, are hereby ratified and, except as modified above, shall be and remain the same. VID R. this 25th day of ATTEST: City Secretary Betty M- Johnson APPROVED AS TO CONTENT: ern Case, Director of Aviation APPROVED AS TO FORM: a� Harold Willard, Assistant City Attorney HW:dw cont-agr/D$4/A-SWAir.d0c March 1993. SOUTHWEST AIRLINES CO. PARKER - IC P ESIDENT GENERAL COUNSEL ATTEST: Agrmt/Southwest Page 3 Exhibit No. 1 LUBBOCK INTERNATIONAL AIRPORT FAR .107 COMPLIANCE 1992 .Access Control System Initial Staffing & Related Annual Costs January 28, 1992 Personnel Salary Benefits Security Coordinator 26,898 7,743 Electronics Tech. 25,875 71503 Systems Operators Transfer Current 3 _ 1 @ 17809 + 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 System Operating and Maintenance costs are unknown until February 1993 when 6 months operating expence will be available. Estimate 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 SUB TOTAL OPERATING EXPENSE office Equipment Capital Expense -office furniture and equipment 13,000 5 years = 2,600 per year TOTAL INITIAL ANNUAL OPERATING EXPENSE Resolution No. 4110 March 25, 1993 Item #24 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 Addendum No. 1 and Addendum No. 2 to an Airline Lease Agreement by and between the City and Southwest Airlines Co. and Addendum No. 3 to an Airline Lease Agreement by and between the City and American Airlines, 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 ATTEST: Betty o ns n, CitySecretary— APPROVED AS TO CONTENT: ern L. Case, Director o viation APPROVED AS TO FORM: laa %'" fold Wi Willard, Assistant City orney HW:da/AGMA-D1/A-SWAMER.rea March 16. 1993 Resolution No. 4110 March 25, 1993 Item #24 ADDENDUM NO. 2 TO AIRLINE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK, TEXAS AND SOUTHWEST AIRLINES CO. WHEREAS, the City of Lubbock, Texas, hereinafter referred to as "City," and Southwest Airlines Co., hereinafter referred to as "Lessee," executed an Agreement, hereinafter referred to as the "Agreement," on or about June 22, 1989, 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 Agreement and 14 C.F.R. Part 107, in good faith renegotiated certain security charges for the use of such space and facilities in the terminal building, and subsequently executed ADDENDUM NO. 1 which amended the Agreement to reflect such renegotiated charges; and WHEREAS, Lessee agreed in ADDENDUM NO. 1 to the Agreement to pay City a pro rata portion of the total annual estimated costs projected by the City, Lessee and other air carriers as necessary for compliance with 14 C.F.R. Part 107; and WHEREAS, both the City and all of the air carriers serving Lubbock International Airport have now determined that the total annual actual costs necessary for compliance with 14 C.F.R. Part 107 may be less than anticipated due to delays in construction of the security access control system mandated by such federal regulations; and WHEREAS, after further negotiations with all of the air carriers serving Lubbock International Airport, both the City and Lessee desire to revise and amend ADDENDUM NO. 1 to further clarify the intent of the parties that Lessee pay no more than its pro rata portion of the total actual expenses reasonably necessary for Lubbock International Airport to be in compliance with 14 C.F.R. Part 107; NOW THEREFORE, ADDENDUM NO. 1 to the Airline Lease.Agreement between the City and Lessee is hereby amended by revising and amending numbered paragraph 1 of said ADDENDUM NO. 1 to read 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 same formula utilized herein for determining rental for common use area, to wit: 20% of the total charges shall be divided equally among all Certificated Passenger Air Transportation Companies based on the percentage of departures in the previous month, and 80% shall be prorated based on each such carrier's percentage of enplanements in the previous month. Effective June 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 the actual costs incurred by the Airport and which are reasonably necessary to achieve compliance with 14 C.F.R. Part 107, and Lessee agrees to pay its pro rata portion of such fee monthly and in accordance with the above formula. City likewise herein agrees that the fee paid by Lessee in accordance with this Section shall be no more ADDENDUM NO. 2--SOUTHWEST AIRLINES CO. --Page 2 than Lessee's pro rata portion of the actual costs incurred by the City and reasonably necessary for compliance with 14 C.F.R. Part 107 and shall only be used by the City to achieve compliance with 14 C.F.R. Part 107 and for no other purpose. City herein also agrees to immediately adjust the monthly amounts billed to Lessee and other air carriers for any reduction in personnel whose positions are funded by the fee hereinabove discussed and for any other changes in the actual costs expended by the City in order to comply 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. ED this 25th day of March 1993. CITY OV'LVBBOM / J SOUTHWEST AIRLINES CO. BY: BY: ID R. LAWSTON.1,0AYOR APARKER - VICE PRESIDENT GENERAL COUNSEL ATTEST: ATTEST: qRJ*AxftdKkJjftAY,X Betty M. Johnson 1 City Secretary APPROVEDASTO CONTENT: ern Case, Director of Aviation APPROVED AS TO FORM: arold Willard, Assistant City Attorney HW:da/INST-D9/A2-S W AQ2.doc February 16, 1993 ADDENDUM NO. 2--SOUTHWEST AIRLINES CO. -Page 3 Resolution No. 4110 March 25, 1993 Item #24 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 Addendum No. 1 and Addendum No. 2 to an Airline Lease Agreement by and between the City and Southwest Airlines Co. and Addendum No. 3 to an Airline Lease Agreement by and between the City and American Airlines, 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 ATTEST: Betty M. JohnsonvCity Secretary APPROVED ASTOCONTENT: Bern E. Case, Director o elation APPROVED AS TO FORM: Hafold Willard, Assistant City -Attorney HWAa/AGENDA-DI/A-SWAME r.s March 16, 1993 Resolution No. 4110 March 25, 1993 Item #24 ADDENDUM NO. 3 TO AIRLINE LEASE AGREEMENT BY AND BETWEEN TIE CITY OF LUBBOCK, TEXAS AND AMERICAN AIRLINES WHEREAS, the City of Lubbock, Texas, hereinafter referred to as "City," and American Airlines, hereinafter referred to as "Lessee," executed an Agreement, hereinafter referred to as the "Agreement," on or about February 23, 1984, in which Lessee agreed to lease from City spaA 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 executed ADDENDUM NO. 1 to the Agreement on or about January 22, 1991; and WHEREAS, both City and Lessee, pursuant to Article VII of the Agreement and 14 C.F.R. Part 107, in good faith renegotiated certain security charges for the use of such space and facilities in the terminal building, and subsequently executed ADDENDUM NO. 2, which further amended the Agreement to reflect such renegotiated charges; and WHEREAS, Lessee agreed in ADDENDUM NO. 2 to the Agreement to pay City a pro rata portion of the total annual estimated costs projected by the City, Lessee and other air carriers as necessary for compliance with 14 C.F.R. Part 107; and WHEREAS, both the City and all of the air carriers serving Lubbock International Airport have now determined that the total annual actual costs necessary for compliance with 14 C.F.R. Part 107 may be less than anticipated due to delays in construction of the security access control system mandated by such federal regulations; and WHEREAS, after further negotiations with all of the air carriers serving Lubbock International Airport, both the City and Lessee desire to revise and amend ADDENDUM NO. 2 to further clarify the intent of the parties that Lessee pay no more than its pro rata portion of the total actual expenses reasonably necessary for Lubbock International Airport to be in compliance with 14 C.F.R. Part 107; NOW THEREFORE, ADDENDUM NO. 2 to the Airline Lease Agreement between the City and Lessee is hereby amended by revising and amending numbered paragraph 1 of said ADDENDUM NO. 2 to read as follows: 1. Article VI of said Agreement is hereby amended by adding Section 6.09 thereto, which shall read as follows: Section 6.09 - 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 same formula utilized herein for determining rental for common use area, to wit: 20% of the total charges shall be divided equally among all Certificated Passenger Air Transportation Companies based on the percentage of departures in the previous month, and 80% shall be prorated based on each such carrier's percentage of enplanements in the previous month. Effective June 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 the actual costs incurred by the Airport and which are reasonably necessary to ADDENDUM NO. 3--AMERICAN AIRLINES --Page 2 achieve compliance with 14 C.F.R. Part 107, and Lessee agrees to pay its pro rata portion of such fee monthly and in accordance with the above formula. City likewise herein agrees that the fee paid by Lessee in accordance with this Section shall be no more than Lessee's pro rata portion of the actual costs incurred by the City and reasonably necessary for compliance with 14 C.F.R. Part 107 and shall only be used by the City to achieve compliance with 14 C.F.R. Part 107 and for no other purpose. City herein also agrees to immediately adjust the monthly amounts billed to Lessee and other air carriers for any reduction in personnel whose positions are funded by the fee hereinabove discussed and for any other changes in the actual costs expended by the City in order to comply 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 6.09, 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. ADDENDUM NO. 3--AMERICAN AIRLINES --Page 3 EXECUTED this 29th day of March , 1993. ATTEST: J Betty M. o nson ibotdM City Secretary APPROVED AS TO CONTENT: Bern Case, Director of Aviation APPROVED AS TO FORM: &4142a 9�� arold Willard, Assistant City Attorney H W:da/1NST-D9/A3-AMERN.doc February 17, 1993 AMERICAN AIRLINES BY: > e' FfcTgC10i1 ATTEST: Sr. Real F- to CC��i l ADDENDUM NO. 3--AMERICAN AIRLINES --Page 4