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HomeMy WebLinkAboutOrdinance - 9543-1992 - Amending Chapter 5 Code Of Ordinaces Airport Ground Transportation Services - 09/13/1992I First Reading August 13, 1992 Item #4 Second Reading August 27, 1992 Item #11 ORDINANCE HO. 9543 AN ORDINANCE AMENDING CHAPTER 5 OF THE CODE OF THE ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, BY ADDING THERETO A NEW ARTICLE III, ENTITLED "AIRPORT GROUND TRANSPORTATION SERVICES," WHICH DEFINES WORDS AND PHRASES; PROHIBITS CERTAIN INDIVIDUALS AND BUSINESSES FROM PROVIDING SUCH SERVICES WITHOUT A PERMIT; DESCRIBES THE PROCEDURE AND REQUIREMENTS FOR OBTAINING A PERMIT; REQUIRES PERMIT HOLDERS TO INDEMNIFY THE CITY, MAINTAIN RECORDS, AND IN SOME CASES TO PAY USER FEES FOR THE PRIVILEGE OF UTILIZING AIRPORT FACILITIES FOR BUSINESS PURPOSES; PROVIDES PROCEDURES FOR REVOCATION OF PERMITS; PROVIDES FOR A SAVINGS CLAUSE; PROVIDES FOR PUBLICATION; AND PROVIDES A PENALTY FOR VIOLATION OF THE TERMS OF THE ARTICLE. WHEREAS, the City of Lubbock, Texas {hereinafter called ncity"), a home-rule municipal corporation, owns, operates, and maintains Lubbock International Airport (hereinafter called "Airport"), which includes, but is not limited to, a recently expanded and remodeled terminal building, runways, taxiways, clear zones, airfields, aprons, roadways, and parking facilities; and WHEREAS, the City is authorized, pursuant to Articles 46d-l, ,e1. seq. {the Municipal Airports Act) and Article 1269j of Vernon's Annotated Texas Statutes to develop, construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police the Airport, and, in operating the Airport, may enter into contracts, leases, and other arrangements granting the privilege of using the Airport, or any portion thereof or space therein, for commercial purposes, and is also empowered to confer the privilege of supplying goods, commodities, and services at the Airport, and to establish the terms and conditions and fix and collect charges, rentals, or fees for such privilege, and to produce revenues sufficient to provide for all expenses of operation, maintenance, and development of the Airport, including reserves therefor; and WHEREAS, the City of Lubbock recognizes and acknowledges its obligation to comply with certain federal grant assurances with regard to Airport development projects for which funds have been obtained pursuant to 49 U.S.C.S. Appx §2201, n. liA• {the Airport and Airway Improvement Act), as amended, and in particular the obligation found in 49 U.S.C.S. Appx §2210(a){9), which requires the Airport to maintain a fee and rental structure for the facilities and services being provided the Airport's users which will enable the Airport to be as self-sustaining as possible; and WHEREAS, the Airport primarily relies on grants, rentals, fees, and charges from Airport operations to finance its development and pay for its maintenance and operating costs; and WHEREAS, some individuals and companies conduct business at the Airport as on-airport operators, generally pursuant to lease agreements or concession agreements with the City that require the payment of rentals, fees, or other charges for such privilege, while other individuals and companies conduct business at the Airport as off-airport operators, without being a party to any such lease agreement or concession agreement with the City; and WHEREAS, during 1992 and in previous years, on-airport operators paid the City reasonable rentals, fees, and other charges for the privilege of using the Airport, which collectively resulted in substantial revenue for the Airport, but many off-airport operators paid the City virtually no rentals, fees, or charges during the same period for the privilege of using the Airport; and WHEREAS, both off-airport operators and on-airport operators derive substantial revenues from the existence of the Airport and the use of Airport facilities; and WHEREAS, the City finds that because of the disparity between the benefit many off-airport operators receive from their use of Airport facilities and the absence of any appreciable contribution to the operating costs, improvement, and development of the Airport by such off-airport operators, the City is being deprived of revenues which could be applied to maintaining and improving the Airport for all of its users, on-airport and off-airport alike, and this disparity may encourage on-airport operators to become off-airport operators and thereby deprive the Airport of additional revenues that are anticipated and needed in the future; and WHEREAS, it is in the public interest to allow off-airport operators to continue to use Airport facilities to provide services to arriving and departing airline passengers, subject to reasonable regulations, even though many such off-airport operators currently pay no rentals, fees, or charges for this privilege, but it is likewise in the public interest to require off-airport operators to pay their fair share of the costs necessary to maintain the Airport and facilitate future growth and expansion; and WHEREAS, the City finds that off-airport operators that provide services to arriving and departing passengers constitute specific and separate classes of individuals and businesses at Lubbock International Airport and derive substantial benefit from the use of the Airport facilities; and WHEREAS, off-airport operators throughout the nation are now paying a percentage of their gross receipts for airport-generated customers ---or in some cases a flat fee ---to many airports for the privilege of providing ground transportation services thereon, and the City Council believes it is advisable and fair to establish reasonable fees or charges for the use of Lubbock International Airport by certain classifications of off-airport operators in a similar manner; and - 2 - WHEREAS, the City further believes that establishing reasonable fees or charges for the use of Lubbock International Airport by certain classifications of off-airport operators would enable the City to more equitably recoup its costs for developing, maintaining, and operating the Airport and also help to preserve existing sources of revenue by encouraging on-airport operators to remain on Airport premises; and WHEREAS, in establishing these fees and charges, the City has given due regard to the property and improvements used, the expenses of operation, and the need for capital reserves for Airport development; and WHEREAS, the City finds that the regulations and charges established and fixed herein for each class of off-airport operators are reasonable and uniform for the use privileges conferred upon each such class, constitute reasonable compensation to the City for the use of Airport facilities by such off-airport operators, and are necessary to help defray the expense of operating, maintaining, and developing the Airport; and WHEREAS, in order to protect the public, to preserve order, to provide for the public health, safety, and welfare, to enhance the Airport as a public transportation facility, to protect established sources of revenue to the Airport, to maximize revenue to the Airport, to help defray the cost of construction, improvement, operation, and maintenance of the Airport, to pay for service and retirement of Airport debts, to regulate the entrances to property and buildings on the Airport and ingress and egress to and from them, and to govern the Airport, the City finds that it is necessary and appropriate to enact an Ordinance regulating and requiring reasonable user fees from certain classifications of off-airport operators who desire to conduct business or serve customers on Airport property; NOW THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1. THAT Chapter 5 of the Code of Ordinances of the City of Lubbock BE and is hereby amended by adding thereto a new Article III, entitled "Airport Ground Transportation Services," which shall read as follows: ARTICLE III. AIRPORT GROUND TRANSPORTATION SERVICES Sec. 5-50. Def1n1t1ons. As used in this Article, the words and phrases below shall have the following meanings: Airport-Generated Business: Any business initiated or consummated between an off-airport operator and another person or persons who were provided ground transportation services to or from the Airport or any of its facilities by the operator within forty-eight (48) hours of arrival at the Airport of the person or persons. For purposes of accounting and administrative convenience, there shall be a presumption that ninety percent (90%) of the gross receipts of off-airport operators which are car or truck rental companies are derived from airport-generated business. However, car or truck rental companies may rebut this presumption at anytime by presenting evidence to the Director of Aviation or his designee which - 3 - satisfactorily demonstrates that a different percentage of gross receipts was derived from airport-generated business. ,Clli: The City of Lubbock, Texas. Director of Aviation: The Director of Aviation for Lubbock International Airport or his agent. Gross Receipts: All charges, including those for time or mileage, whether for cash or credit, for the rental of motor vehicles and from the sale of accident insurance by car or truck rental companies, including inter-city or drop fees, and all credits given to car or truck rental company customers for out-of-pocket purchases of gasoline, oil, and similar purchases, but excluding the amount of any federal, state, county, or municipal sales or other similar taxes separately stated and collected from customers of such companies, any sums received for damage to motor vehicles or other property of the companies, or for loss, conversion, abandonment, sale, or disposal of such motor vehicles or other property, any sums paid by customers to employees of such companies as gratuities, any sums paid by customers separately stated and collected as additional charges for a waiver by the companies of their right to recover from customers for damages to leased vehicles, any sums separately stated and collected from customers as reimbursement for refueling motor vehicles, and any amounts granted or discounts allowed as a deduction or an off-set from normal time.and mileage charges. Ground Transportation Services: Carrying, delivering, or transporting passengers, customers, baggage, cargo, freight, or mail for consideration or as a courtesy to or from an off-airport operator's place of business. Off-Airport Operator: Any person or persons included in one or more of the classifications described in Sec. 5-55 of this Article and who provides ground transportation services to arriving or departing airline passengers at the Airport for commercial or business purposes, but not pursuant to a contract, lease, or other agreement with the City to provide such services. As used in this Article, the phrase •commercial or business purposes" includes courtesy transportation. Permit: Authorization granted by the City of Lubbock to an off-airport operator to provide ground transportation services at the Airport under the provisions of this Article. Permit Holder: Any off-airport operator that possesses a current, valid permit which allows the operator to provide ground transportation services to arriving or departing airline passengers at the Airport for commercial or business purposes. Person: An individual, partnership, association, corporation, or other legal entity. User Fee: A monthly fee assessed to certain classifications of off- airport operators for the privilege of providing their customers with ground transportation services upon Airport premises. - 4 - Sec. 5-51. Permit required. It shall be unlawful for any off-airport operator to provide any ground transportation services at the Airport or on any of its facilities or appurtenances thereto including, but not limited to, any roadways adjacent to the Airport Terminal Building, without a valid ground transportation permit issued by the Director of Aviation. Sec. 5-52. Permit application and fee. (a) The Director of Aviation shall issue a ground transportation permit to an off-airport operator only upon receipt of a signed and verified application from such operator containing the following information: (1) the name, address, and telephone number of the applicant; (2) the name, address, and telephone number of all persons authorized to act for the applicant; (3) the number and description of all vehicles which the applicant proposes to use to provide ground transportation services at the Airport, including the year, make, model, seating capacity, motor vehicle identification (serial) number, and license registration number for each vehicle; (4) proof of: l. comprehensive general liability insurance for personal injury or death, arising out of any one accident or other cause, in a minimum sum of ONE HUNDRED THOUSAND DOLLARS ($100,000) for one person and THREE HUNDRED THOUSAND DOLLARS ($300,000) for two or more persons; and 2. property damage liability insurance in a minimum sum of FIFTY THOUSAND DOLLARS ($50,000) for property damage arising out of any one accident or other cause. Said liability insurance shall insure all motor vehicles used by the applicant in transporting passengers or customers to and from the Airport. The insurance policy shall be underwritten by an insurance company authorized to do business in the State of Texas. The certificate reflecting such insurance policy shall show that the City of Lubbock is carried as an additional insured on the policy for all operations under the permit at the Airport, and shall provide that such policy shall not be materially altered, cancelled, or terminated without at least ten (10) days prior written notice to the City. In lieu of the comprehensive general liability insurance policy coverage provided for herein, if an off- airport operator is authorized by the laws of the State of Texas to self-insure, proof of compliance with the self- insurance provisions of those laws shall be provided; (5) the name, address, and telephone number of a person who the permit holder has appointed to act as liaison between the permit holder and the Airport and receive all notices required of this Article; and - 5 - (6) such additional information as the Director of Aviation reasonably considers necessary in determining whether the issuance of a permit is in the best interest of passengers arriving at or departing from the Airport. (b) The annual fee for a permit for off-airport operators classified in accordance with Secs. 5-55(a)(l) and (a)(2) of this Article shall be Fifty Dollars ($50.00), payable upon submission of an application for such permit. The annual fee for a permit for off-airport operators classified in accordance with Sec. 5-55(a)(3) of this Article shall be Two Hundred and No/100 Dollars ($200.00) payable upon submission of an application for such permit and shall automatically be revised upward or downward beginning on January 1, 1993, and on January 1 of each ensuing year in accordance with the percentage increase or decrease for the previous twelve (12) months in the Consumer Price Index published by the United States Department of Labor. All permit fees shall be non-refundable. (c) Unless revoked, a permit gives the permit holder a non-exclusive right to provide ground transportation services to incoming and outgoing airline passengers at the Airport in compliance with this Article for one (1) year from the date of issuance. A permit does not entitle the permit holder, his employees, agents, or customers, to lease motor vehicles on Airport premises, to construct or maintain an office or other improvements or facilities on Airport premises, to utilize space or other facilities at the Airport in which access to the general public is denied, to advertise the permit holder's business on Airport premises free of charge, to park rental vehicles on Airport premises free of charge, or to solicit business in any manner whatsoever on Airport premises, all of which are expressly prohibited without a lease agreement or concession agreement with the City executed by the permit holder for such purposes. Transportation of rental cars onto Airport premises by off-airport operators is also prohibited. (d) All permits issued pursuant to this Article shall be non- assignable. Sec. 5-53. Indemn1f1cat1on. As a condition to obtaining a permit under this Article, each applicant for a permit must agree to indemnify and hold harmless the City, its officers, employees, and agents from any and all claims for damages or injuries whatsoever to persons or property arising from or incident to the permit holder's ground transportation services provided pursuant to the permit issued in accordance with this Article, except those claims which result from the sole negligence or willful misconduct of the City, its officers, employees, or agents, and except to the extent such claims result from acts or omissions of the City, its officers, employees, and agents, which are the sole and proximate cause of any personal injury, death, or property damage. - 6 - Sec. 6-54. Audit. While a permit is in effect, and for up to two (2) full years afterwards, a permit holder whose user fee is calculated as a percentage of gross receipts shall maintain complete and accurate records within the corporate limits of the City of all gross receipts and of all ground transportation services provided to customers or passengers transported to or from the Airport, and shall make those records available for inspection and audit by City employees or agents of the City at all reasonable times to verify that accurate user fees have been paid to the Airport. In addition, the Director of Aviation may require an independent audit of the permit holder's business records, and if such audit reveals that the permit holder has underreported its gross receipts by three percent (3%) or more, the permit holder shall be responsible for paying the difference between the amount of gross receipts from airport-generated business determined by the audit and the amount of such receipts reported by the permit holder, as well as the full cost of the audit. Sec. 5-55. User fees. (a) In addition to the permit fees required of off-airport operators by this Article, and in consideration of the privilege of providing their customers with ground transportation services upon the premises of the Airport, each off-airport operator shall pay the City a user fee in accordance with the following classifications: (1) Car or Truck Rental Companies -Nine Percent (9%) of gross receipts from airport-generated business which exceed $25,000 in any calendar year. (2) Commercial Shuttle Operators and Parking Facility Owners -A flat fee of One Hundred Dollars ($100) per month. (3) Hotels/Motels -No additional fee. (b) All user fees required of off-airport operators which are flat fees shall automatically be revised upward or downward beginning on January 1, 1993, and on January 1 of each ensuing year in accordance with the percentage increase or decrease for the previous twelve (12) months in the Consumer Price Index published by the United States Department of Labor. (c) All user fees are payable to the Airport monthly within twenty (20) days of the end of the month in which such fees accrued. A statement of the permit holder's gross receipts for the month preceding every month in which payment is made must accompany any fee which is calculated as a percentage of gross receipts. - 7 - Sec. 5-56. Revocation of a permit. (a) The Director of Aviation may revoke a permit, subject to a hearing, whenever he has reason to believe that the permit holder: (1) falsified the application for the permit in any manner or omitted pertinent information from such application; (2) provided any ground transportation services at the Airport in such a manner so as to endanger persons or property; (3) failed to maintain general liability and property damage insurance in the amounts specified by this Article; (4) failed to remit the appropriate user fees to the City when due; (5) failed to adhere to all federal, state, and local laws, regulations, and ordinances which have a direct or indirect impact upon the ground transportation services being provided at the Airport; or (6) failed to meet any of the other requirements of this Article at anytime. (b) The Director of Aviation or his designee shall provide written notice of the grounds for revocation by certified mail, return receipt requested, or by hand delivery, to a permit holder whose permit is subject to revocation under the provisions of this Section. Said notice shall be sent or delivered to the address of the permit holder provided to the Airport on the permit holder's application for the permit. (c) A permit holder whose permit is subject to being revoked under the provisions of this Section may request in writing, within ten (10) days after receipt of the notice of revocation, that the Director of Aviation conduct an administrative hearing to determine if the revocation is proper. If a hearing is not requested within ten (10) days, the revocation automatically becomes effective on the first day following the expiration of such 10-day period. · (d) Upon receipt of a request for a hearing, the Director of Aviation shall, unless otherwise agreed, conduct a hearing not less than ten (10) days nor more than twenty (20) days after receipt of such request. (e) If, after considering the evidence presented at a hearing over which he presides, the Director of Aviation determines that revocation of a permit is appropriate, he shall so advise the permit holder in writing within ten (10) days of the hearing and shall further advise the permit holder whose permit is subject to revocation that he may appeal such decision within ten (10) days to the Permit and License Appeal Board in accordance with the City ordinance creating such Board. The decision of the Board shall be final. (f) A permit holder whose permit is subject to revocation under this Section may continue providing ground transportation services on Airport premises during the pendency of any hearing unless the Director of Aviation reasonably determines that an immediate suspension of such privi-lege is necessary to protect the health and welfare of citizens who utilize the Airport. - 8 - (g) Revocation of a permit pursuant to this Section shall disqualify the holder of the permit, and any partnership or corporation in which the permit holder is a partner, director, principal officer, or substantially interested, from reapplying for a permit for a period of one (1) year following the effective date of the revocation. (h) Upon revocation of a permit under this Article, the permit holder whose permit was revoked shall immediately cease providing ground transportation services at the Airport and pay the Airport all remaining user fees up to the date of revocation. (i) The Director of Aviation may reject any application for a permit when he has reason to believe the application contains false or misleading information or is necessary to protect the health, safety, or welfare of the public. In such an event, the procedure for revoking a permit as outlined in this Section, including the procedure for effecting an appeal, shall be followed. SECTION 2. THAT should any section, paragraph, sentence, clause, phrase, or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. SECTION 3. THAT the City Secretary is hereby authorized to cause publication of the descriptive caption of this Ordinance as an alternative method as provided by law. SECTION 4. THAT violation of any provision of this Ordinance shall be deemed a misdemeanor punishable by a fine not to exceed Two Hundred Dollars ($200.00), as provided in V.T.C.A., Local Government Code §54.001. Each violation of this Ordinance shall be punishable as a separate offense. SECTION 5. THAT violation of any provision of this Ordinance may subject the person deemed to have violated the provision to such administrative actions as are set forth herein and elsewhere in the Code of Ordinances for the City of Lubbock without regard to whether the person is charged or convicted of a criminal offense under this Article. SECTION 6. THAT the effective date of this Ordinance shall be thirty (30) days following its passage by the City Council on second reading. - 9 - SECTION 7. THAT the Director of Aviation is hereby authorized and directed to immediately send written notice of the effective date of this Ordinance to all off-airport operators which he knows are likely to be affected by the passage of this Ordinance. Passed by the City Council August , Passed by the City Counc;1 August AND IT IS SO ORDERED. v at1on APPROVED AS TO FORM: ~.Y."'~city Attorney BW:dw/Agenda-D#l/Airport,Ord August lit, 1992 -10 - No Text THE STATE OF TEXAS COUNTY OF LUBBOCK R•1JST -;- Before me Patti Tl t I a Notary Public in and for Lubbock County. Texas on this day personally appeared T J hff+I-kco-unt Mill'I IU!tr of the Southwestern Newspa• pers Corporation, publishen of bieTub66ck Avhlinche-Journai ~ Morning, and Sunday, who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks pri- or to the first insertion of this L11!1 t-Nf'tic _____________ No.oe-lsss at Lubbock County, Texas and the attached print- ed copy of the Lel!e I No•1~e i~ a true copy of the original and was printed in the Lubbock Avalanche-Journalonthefollowmgdates: Au«uat 29, l se,tcmber s, 1992 ;; VI~ lll-90 . {Jail; Jab ~ NOTARY PUBLIC In and for the State of Texas My Commission Expires .................. __ _ Southwestern Newspaper Corporation Subscribed and sworn to before me th ... is--e---day of s e, temtJ er 19 92 FORM58-1U THE STATE OF TEXAS COUNTY OF LUBBOCK R•115T Before IJ'le Pl t t f, Tl t • a 'Notary Public in and for Lubbock County. Texas on this day personally appeared T d ufi-f-t, Account Heu, as-er of the Southwestern Newspa- pers Corporation, publishe~ 01theiii~ii Avhlanc11e-Journa1 ~ Morning, and Sunday, who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks pri- or to the first insertion of this LI l!a I· Nlt-·t ce-____________ No.OS-i555 at Lubbock County, Texas and the attached print- ed copy of the Le I! 1 t NI t l c e . Is a true copy of the original and was printed in the Lubbock Ava1;.r;J::-nr.0ofe.!o~;~,lotes: AtUl!UI t 29, A s1,tem1>er 5, s.992 t}dl:1al .. Aeeount Hen•lfer LUBBOCKAVALANCHE~OURNAL Southwestern Newspaper Corporation NOTARY PUBLIC In~ the State of Texas My Commission Expires .................. __ _ Subscribed and sworn to before me thi.~s __ , ___ .... day of g e pt 1mb • r 19 92 iP'C~'°'1~...0CO,-...C1"'~::,o,clC,o~ FORM58-10 PATTI TATE · .: Notary Publ,c, State of Texas -~-~ .... gr My Comrt11s. .. ·,n Ell)lres 6·30-96 NO'IOOOO'On""