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Home My WebLink AboutResolution - 4160 - Addendum #2 Lease Agreement- Delta Air Lines- Fee Collection To Offset FAA Costs - 05_27_1993RESOLUTION 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. 2 to the Airline Lease Agreement by and between the City and Delta Air Lines, Inc., 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,4-f-TUTly,,copied herein in detail. Passed by the City Council thi ATTEST: et y o nso ty ecre ary APPROVED AS NTENT: ern ase; Direr Aviation APPROVED AS TO FORM: a�Willard, ty Attorney HW:dw/agenda-D1/De1ta.rea rev. Jame 2. 1993 , 1993. CITY OF LUBBOCK MEMO TO: File FROM: Betty Johnson, City Secretary yN \ 4p- SUBJECT: Resolution 4160, Addendum No. 2 to the Airline Lease Agreement DATE: June 4, 1993 Resolution 4160 inadvertantly indicated that the addendum was No. 3 rather than No. 2. The correction was made and required signatures obtained on the corrected resolution. Resolution No. May 27, 1993 Item #29 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. 3 to the Airline Lease Agreement by and between the City and Delta Air Lines, Inc., 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 v-TF-f4iqy copied herein in detail. Passed by the City Council this 27th dA of ATTEST- D'elTy-OW Johoon, City Secretary AP VED AS T T E T: T: Bern Case, Director of Aviation APPROVED AS TO FORM: �f . arol-d Willard, ty Attorney HW:dw/agenda-D1/De1ta.res May 17, 1993 ADDENDUM NO. 2 TO AIRLINE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK, TEXAS, AND DELTA AIR LINES, INC. WHEREAS, the City of Lubbock, Texas, hereinafter referred to as "City," and Delta Air Lines, Inc., hereinafter referred to as "Lessee," executed an Agreement on or about June 9, 1983, 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 VII 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 9, 1983, to reflect such renegotiated charges; NOW THEREFORE, the Airline Lease Agreement hereinabove referred to is hereby amended 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 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. October 1, 1992 INITIAL Effective 05ttae ty 4!99Q 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 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. Agrmt/Delta Page 2 2. All other terms and conditions of the Agreement executed between the City and Lessee on or about June 9, 1983, and subsequently amended by Addendum No. 1 on or about January 11, 1989, are hereby ratified and, except as modified above, shall be and remain the same. D t"s 27th day of May , XRRZX 1993. A R. WGSTON, PAYOR ATTEST: J-k MbmBtbnkBoW City Secretary Betty M. Johnson APPROVED AS TO CONTENT: Bern Case, Director of Aviation APPROVED CCAXXnnS T►►,�O// FORM: arold Willard,,A� t City Attorney EW:dw ca t-agr/D04/A-Delta.doc DELTA AIR LINES, INC. � �2 _ Harris Morris Vice President•Propete;; A EST: Agrmt/Delta Page 3 Additonal for 24 hr/7 day operation 3'@ 17,124 $51,372 TOTAL PERSONNEL $181,185 supplies Office Supplies 750 Cleaning Supplies 150 Other Eq. Supplies 500 Other Office Supply 450 ASC Uniforms 350 TOTAL SUPPLY $2,20( rx a. Maintenance System Operating and Maintenance costs are unknown until February 1993 when 6 months operating expence will be available. Estimate $75,00;