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HomeMy WebLinkAboutResolution - 3967 - Addendum To Airline Lease Agreement - Continental Express - FAA, FAR Cost Fees - 09/24/1992Resolution No. 3967 September 24, 1992 Item 422 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 Addendums to Airline Lease Agreements with American Airlines and Rocky Mountain Airways, Inc. d/b/a Continental Express, 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 of this Resolution as if fully copied herein in detail. Passed by the City Council thks 24th 3ayjof ' Senxemhef" 1992• nun �c vv�, .+, .....•, ....... � ��.. � APPROVED AS TO CONTENT: Bern Case, Director o viation APPROVED AS TO FORM: &4 Maf-old WilTard;ssis aft City Attorney HW:dw/Agsnda-D2/Addndms.rss August 28, 1992 Resolution No. 3967 September 24, 1992 Item 422 ADDENDUM NO. 2 TO AIRLINE LEASE AGREEMENT BY AND BETWEEN THE 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 on or about February 23, 1984, 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 February 23, 1984, 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. Effective October 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. 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/Amer. Page 2 t 2. All other terms and conditions of the Agreement executed between the City and Lessee on or about February 23, 1984, and subsequently amended by Addendum No. 1 on or about January 22, 1991, are hereby ratified and, except as modified above, shall be and remain the same. ST: Ran tte Boyd, City 94cretary APPROVED AS TO CONTENT: Bern Case, Director of Aviation APPROVED AS TO FORM: /241'40211/ard, Assigtant City Attorney HW:dw cont-agr/NVA-Amer.doc September , 1992. AMERICAN AIRLINES AGING DIRECTOR -PROPERTIES ATTEST: TE REAL ESTATE F Agrmt/Amer. 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 Total Security Coordinator 26,898 7,743 $34,641 Electronics Tech. 25,875 7;503 $33,378 ..x Systems Operators _ Transfer Current 3 - 1 @.17909-+ 6241 24,050 1 @* 15309 + 5315 1 @ 13478 + 3646 = 17,124 $61,798 Additonal for 24 hr/7 day operation 3 @ 17,124 $51,372 TOTAL PERSONNEL $181,189 supplies Office Supplies 750 Cleaning Supplies 150 Other Eq. Supplies _ 500 .Other Office Supply'' 450 - ASC Uniforms 350 TOTAL SUPPLY $2,200 Maintenance System Operating and Maintenance costs are unknown until February 1993 when 6 months - operating expence will be available. Estimate $75,000 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 r $11,451 SUB TOTAL OPERATING EXPENSE $269,840 office Equipment -- Capital Expense -office furniture and.equipment 13,000 5 years = 2,600 per year $2,600 __ TOTAL INITIAL ANNUAL OPERATING EXPENSE .$272 4'40