HomeMy WebLinkAboutResolution - 4147 - Addendum #2 To Lease Agreement-Continental Express-Fee Collection To Offset FAA - 05_13_1993Resolution No. 4147
May 13, 1993
Item #39
RESOLUTION
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 an Addendum to
the Lease Agreement by and between the City of Lubbock and Rocky Mountain Air-
ways d/b/a Continental Express, attached herewith, which shall be spread upon
the minutes of this Council shall constitute and be a part of the Resolution
as if fully copied herein in deta
Passed by the City Council on thi
ATTEST:
et y o nso Ci5 Secretary
APPROVED AS TO CONTENT:
Bern E. Case, Director of Aviation
APPROVED S TO FORM
Anthonyi i ms, Assistant City
Attorney
AJW:js/ADRKYMTN,RES
DI-Agenda/April 21, 1993
ADDENDUM NO. 2
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, hereinafter referred to as the "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 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.
ADDENDUM NO. 2--ROCKY MOUNTAIN AIRWAYS, INC.--Page 2
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 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.
EXECUTED this 13th
ATTEST:
ally till be,
Acting City Secretary
day Of May , 1993.
APPOVED AS TO CONTENT:
Bern Case, Director of Aviation
APPROVED AS TO FORM:
Harold Willard,
Assistant City Attorney
H W :da/1NST-D9/A2-ROCKY.doc
February 17, 1993
ROCKY MOUNTAIN AIRWAYS, INC.
d/b/a CONTINENTAL EXPRESS
BY •
Sam Ashmore, Sr. V. P.
ATTEST: Civic & Airport Affairs
ADDENDUM NO. 2--ROCKY MOUNTAIN AIRWAYS, INC.—Page 3