HomeMy WebLinkAbout020752 ORD - 08/15/1989AN ORDINANCE
AUTHORIZING THE EXECUTION OF AGREEMENT WITH CONTINENTAL
AIRLINES, INC., SOUTHWEST AIRLINES COMPANY, AND AMERICAN
AIRLINES, INC. FOR USE OF FACILITIES AT CORPUS CHRISTI
INTERNATIONAL AIRPORT; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That the City Manager is hereby authorized to
execute agreements with Continental Airlines, Inc., Southwest Airlines
Company, and American Airlines, Inc. for use of facilities at Corpus
Christi International Airport, all as more fully set forth in the
agreements, substantial copies of which are attached hereto and made a
part hereof, marked Exhibits A, B, and C respectively.
SECTION 2. That upon written request of the Mayor or five
Council members, copy attached, to find and declare an emergency due
to the need of executing the abovementioned at the earliest
practicable date, such finding of an emergency is made and declared
requiring suspension of the Charter rule as to consideration and
voting upon ordinances at three regular meetings so that this
ordinance is passed and shall take effect upon first reading as an
emergency measure this the day of
19}.
ATTEST:
City Secretary MAYOR
APPROVED: DAY OF ,,`,c
HAL GEORGE, CITY ATTORNEY
By ...A...Li:Lc,y
Assistant City Attorney
19
THE CITY OF CORPUS CHRISTI
20752 Whet% all ED
MEMORANDUM OF UNDERSTANDING
Memorandum made this day of 198_, by and between the City
of Corpus Christi, Texas (hereinafter called the "City") and American Airlines, Inc.,
Continental Airlines, and Southwest Airlines Co. which are signatories to this
Agreement, said signatory airline corporations hereinafter referred to collectively as
Airlines, and individually as Airline.
WITNESSETH
WHEREAS, City operates Corpus Christi International Airport (the "Airport") which
it operates through the Department of Aviation; and
WHEREAS, City and Airlines desire to enter into an airport use and lease agreement.
NOW THEREFORE, the parties agree to enter into a use and lease agreement in
accordance with the following understanding.
1. Rates, Fees, and Charges
During a fiscal year, the aggregate of the rents, fees, and charges paid by
Airlines together with all other Fund 117 Revenue of the Airport shall be at least
sufficient to pay all Fund 117 Requirements, including costs of operation, maintenance,
and administration (O&M) and the Debt Service of the Airport. Net Revenue, that is the
annual excess, if any, of all Revenues (except contingent rental from new nonairline
sources along Highway 44) over Requirements, shall be divided on a 60:40 basis between
City and Airlines, respectively. The Airlines' share of Net Revenue shall be applied
as a credit against costs for computing landing fees in the subsequent fiscal year.
The City's share will be available for any legal airport use.
Effective January 1, 1989, each Airline shall pay to the City rents, fees, and
charges per the following schedule: $21.47 per square foot per year for exclusive use
space in the terminal; for each aircraft landing, $0.73 per 1000 pounds of current
maximum allowable gross landing weight certificated by the Federal Aviation
Administration; for each aircraft parking position, seven-twelths of $38,430 prorated
over the last seven months of the fiscal year; and for common use charges associated
with facilities and services enjoyed in common by Airlines, seven-twelths of $330,926
prorated over the last seven months of the fiscal year.
Rates, fees, and charges shall be reviewed annually and may be adjusted effective
upon the first day of each fiscal year to reflect (1) budgeted Fund 117 Requirements,
including amounts for O&M, Reserve Appropriation, and Debt Service allocable to Airport
Cost Centers (i.e., Terminal Area, Airfield Area, Apron Area, Parking Area, and Other
Area) and (2) Airlines' proportionate share thereof based upon measures of use. Rates,
fees, and charges may be adjusted effective January 1 to reflect the variance between
estimated costs for computation of rates, fees, and charges and actual costs during the
last preceding fiscal year. The cost allocation and rate -setting approaches were
illustrated in a series of exhibits distributed to representatives of each Airline as
r
MEMORANDUM OF UNDERSTANDING Page 2 of 3
an attachment to a letter dated May 4, 1988 from the Jahn F. Brc•.vn Company, Inc. The
attachments did not illustrate the a1baeatica of Net Revenue described above.
2. City Resp021.sJz]lities
City will provide water, sewer, and HVAC' services to point(s) accessible to the new
airline ticket office area fot hookups by individual ,airlines for their exclusive use
space in the airline ticketing and office arras.
City will provide boiler to heat the area of the new ticketing wing of the terminal
building, including the area of the airline ticket offices.
City will provide compute: ccn,Juit to point(s) accessible to new concourse
extension for hookups by indi:idura .Ahiire
3. Cav'ttal Imp :f vF1
Capital Improvement will mean the waole of any single item having both a cost to
the City to design, construct, and equip in excess or 5100,000 and a useful life in
excess of 3 years. If, according to estimates prepared by tho City and reviewed with
the Airlines, the annual rates; fees, and charges paid by airlines collectively would
increase by I0 percent or mere In any fiscal year, solely as a result of Capital
Improvement(s), then such Capita; irnprovernant(s), unless h Is for safety or is
mandated by the FAA er c similar or a successor agency with authority over the Airport,
will be subject to the approval of a majority of the number of Airlines serving the
Airport. Airlines will formally approve or iiisapprove such Capital Imorovemenr(s)
within 90 days of being formally advised by the City of the nature of the Capital
Improvement(s) and the estimates referred to above, otherwise such Capital
Improvement(s) may be considered as not disa+,+,r-roved and the City may commence its
undertaking and incorporate the costs thereof into the base of costs for computing
airline rates, fees, and charge_.. The foreaoin3 shall not prevent the City from
undertaking such Capital improvement(s), if the capital and operating costs associated
with it are not included in the base of cost for co^.mpuiing airline rates, fees, and
charges.
4. Term
The terns of the use and Lease a r:emelt 'in lie for five years beginning January I,
1989.
5. g.ffeCtive Date
This blemoranduni of Understanding shall become retroactively effective to January 1,
1939 when it is executed by the City and Airlines. 4'6'e68 1S7\lr ro r'iGS
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MEMORANDUM OF UNDERSTANDING
ATTEST:
By:
Page 3 of 3
CITY OF CORPUS CHRISTI, TEXAS
By:
City Secretary City Manager
APPROVED AS TO LEGAL FORM:
This a0 day of ,(,".L 1989
By: ✓ LA:nr
By:
Assista t City Attorney/ Assistant City Manager
AMERICAN AIRLINES, INC.
By:
CONTINENTAL AIR INE
By:
.71
RY H. LANTNER
VICE PRESIDENT — PROPERTIES & PURCHASING
SOUTHWEST AIRLINES CO.
By:
MEMORANDUM OF UNDERSTANDING
Memorandum made this day of 198_, by and between the City
of Corpus Christi, Texas (hereinafter called the "City") and American Airlines, Inc.,
Continental Airlines, and Southwest Airlines Co. which are signatories to this
Agreement, said signatory airline corporations hereafter referred to collectively as
Airlines, and individually as Airline.
WITNESSETH
WHEREAS, City operates Corpus Christi International Airport (the "Airport") which
it operates through the Department of Aviation; and
WHEREAS, City and Airlines desire to enter into an airport use and lease agreement.
NOW THEREFORE, the parties agree to enter into a use and lease agreement in
accordance with the following understanding.
I. Rates. Fees. and Charges
During a fiscal year, the aggregate of the rates, fees, and charges paid by
Airlines together with all other Fund 117 Revenue of the Airport shall be at least
sufficient to pay all Fund 117 Requirements, including costs of operation, maintenance,
and administration (O&M) and the Debt Service of the Airport. Net Revenue, that is the
annual excess, if any, of all Revenues (except contingent rental from new nonairline
sources along Highway 44) over Requirements, shall be divided on a 60:40 basis between
City and Airlines, respectively. The Airlines' share of Net Revenue shall be applied
as a credit against costs for computing landing fees in the subsequent fiscal year.
The City's share will be available for any legal airport use.
Effective January 1, 1989, each Airline shall pay to the City rates, fees, and
charges per the following schedule: 521.47 per square foot per year for exclusive use
space in the terminal; for each aircraft landing, 50.73 per 1000 pounds of current
maximum allowable gross landing weight certificated by the Federal Aviation
Administration; for each aircraft parking position, seven-twelths of 538,430 prorated
over the last seven months of the fiscal year; and for common use charges associated
with facilities and services enjoyed in common by Airlines, seven-twelths of 5330,926
prorated over the last seven months of the fiscal year.
Rates, fees, and charges shall be reviewed annually and may be adjusted effective
upon the first day of each fiscal year to reflect (1) budgeted Fund 117 Requirements,
including amounts for O&M, Reserve Appropriation, and Debt Service allocable to Airport
Cost Centers (i.e., Terminal Area, Airfield Area, Apron Area, Parking Area, and Other
Area) and (2) Airlines' proportionate share thereof based upon measures of use. Rates,
fees, and charges may be adjusted effective January 1 to reflect the variance between
estimated costs for computation of rates, fees, and charges and actual costs during the
last preceding fiscal year. The cost allocation and rate -setting approaches were
illustrated in a series of exhibits distributed to representatives of each Airline as
c
C
MEMORANDUM OF UNDERSTANDING Page 2 of 3
an attachment to a letter dated May 4, 1988 from the John F. Brown Company, Inc. The
attachments did not illustrate the allocation of Net Revenue described above.
2. City Responsibilities
City will provide water, sewer, and HVAC services to point(s) accessible to the new
airline ticket office area for hookups by individual Airlines for their exclusive use
space in the airline ticketing and office areas.
City will provide boiler to heat the area of the new ticketing wing of the terminal
building, including the area of the airline ticket offices.
City will provide computer conduit to point(s) accessible to new concourse
extension for hookups by individual Airlines.
3. Capital Improvements
Capital Improvement will mean the whole of any single item having both a cost to
the City to design, construct, and equip in excess of S100,000 and a useful life in
excess of 3 years. If, according to estimates prepared by the City and reviewed with
the Airlines, the annual rates, fees, and charges paid by airlines collectively would
increase by 10 percent or more in any fiscal year, solely as a result of Capital
Improvement(s), then such Capital Improvement(s), unless it is for safety or is
mandated by the FAA or a similar or a successor agency with authority over the Airport,
will be subject to the approval of a majority of the number of Airlines serving the
Airport. Airlines will formally approve or disapprove such Capital Improvement(s)
within 90 days of being formally advised by the City of the nature of the Capital
Improvement(s) and the estimates referred to above, otherwise such Capital
Improvement(s) may be considered as not disapproved and the City may commence its
undertaking and incorporate the costs thereof into the base of costs for computing
airline rates, fees, and charges. The foregoing shall not prevent the City from
undertaking such Capital Improvement(s), if the capital and operating costs associated
with it are not included in the base of cost for computing airline rates, fees, and
charges.
4. Term
The term of the use and lease agreement will be for five years beginning January I,
1989.
5. Effective Date
This Memorandum of Understanding shall become retroactively effective to January 1,
1989 when it is executed by the City and Airlines.
C
c
MEMORANDUM OF UNDERSTANDING Page 3 of 3
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
By: By
City Secretary City Manager
APPROVED AS TO THE LEGAL FORM:
This 15 day of L.A.LciddL I9t
By:'
. • By:
•
Assistant City Attorney Assistant City Manager
AMERICAN AIRLINES, INC.
By:
CONTINENTAL AIRLINES
By:
SOUTHWESTJ AIRLINESfCO.
BY: LdQ.(r.W `aciA)0
Corpus Christi, Texas
day of , 193
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance
or resolution, an emergency' exists requiring suspension of the Charter rule
as to consideration ana voting upon ordinances or resolutions at three
regular meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance or resolution finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully, Respectfully,
99.045.01
Council Members
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance s:as passed by toe rollcwing vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero (,
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
2f)'752