HomeMy WebLinkAboutResolution - 4994 - Addendum #3 Airline Lease Agreement-Delta Air Lines Inc-Facilities, LIA - 10_19_1995Resolution No. 4994
October 19, 1995
Item $9
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 an Airline Lease
Agreement by and between the City of Lubbock and Delta Air Lines, Inc., attached hereto and
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 19 h day of \, o , 1995.
VID R. LANGSTOJQ MAYOR
ATTEST:
.r*' _
Betty bf ohnson, ity Secretary
APPROVED AS TO CONTENT:
. Earle, Aviation Manager
APPROVED AS TO FORM:
HaroldA"2a %�" Willard, Assistant City Attorney
H W: da/ccdocs/DELTA.res
July 27, 1995
Resolution No. 4994
October 19, 1995
Item #9
ADDENDUM NO.3
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, hereinafter referred to as
the "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 executed ADDENDUM NO. 1 to the Agreement on or
about January 11, 1989; and
WHEREAS, both City and Lessee, pursuant to Article VU 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 800/a 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 rats 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 rats
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
ADDENDUM NO. 3
DELTA AIR LINES, INC. - PAGE 2
ir
payments into and expenditures from this fund or account shall be subject
to review by Lessee and such other air carriers.
this 19 th day of
ATTEST:
May M. Jo nson, ty Secretary
APPROVED AS TO CONTENT:
dim N ome, Acting Director of -Aviation
APPROVED AS TO FORM:
Harold Willar , Asstant City Attorney
HW js/A3-DELTADOC
D4-Aupo&Octobw 17,1994
October .19 95
DELTA AIR LINES, INC.
HN W. BOATRI T
DIRECTOR
:AIRPORT & CORPORATE AFFAIRS
LESUE P. KLEMPERER
ASSISTANT SECRETARY
ADDENDUM NO.3
DELTA AIR LINES, INC. — PAGE 3