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HomeMy WebLinkAboutORD 6737 AUGUSTA REGIONAL POLICY Augusta Richmond GA DOCUMENT NAME: 0 - C) 4 -- 1.0 1 6/ DOCUMENT TYPE: 0 (Z~ \ (\) A rJc..e- YEAR: GZOD Lt BOX NUMBER: ;;Z <..\ FILE NUMBER: ) 7 LJ 7 8" NUMBER OF PAGES: aD , , . r . ORDINA]\~CE NO. 6737 A ORDINANCE ADOPTING AUGUSTA-RICHMOND COUNTY'S FISCAL POLICY AND METHOD TO ESTABLISH AND ADJUST AUGUSTA REGIONAL AIRPORT'S AIRLINE RENTS AND FEES AND OTHER CHARGES; PROVIDING FOR LEVY AND COLLECTION; PROVIDING FOR PENALTIES; PROVIDING FOR SEVERABILITY; REPEA~ING CLAUSE; PROVIDING AN EFFECTIVE DATE. WHEREAS, Augusta-Richmond County (County) is the owner and operator, through the Augusta Aviation Commission, of an airport known as Augusta Regional Airport at Bush Field (hereinafter referred to as "the Airport"); and WHEREAS, the County is undertaking the financing and development of a new passenger tenninal building and related facilities, which are to be supported by Airport Revenues (as hereinafter defined); and WHEREAS, the County has detem1ined that there is a need to adopt a fiscal policy for operation of the Airport and a method to establish and periodically adjust rents and fees for Airlines (as hereafter defined) operating at the Airport that do not have operating agreements with the County; NOW, THEREFORE, BE IT ORDAINED BY AUGUSTA-RICHMOND COUNTY, GEORGIA: Ordinance No. 1-3-8.4 is hereby amended to read as follows: SECTION 1. POLICY. 1.1 The County hereby adopts the following fiscal policy for operation of the Airport and the following method to establish and periodically adjust rents and fees to be paid by all Airlines operating at the Airport that do not have operating agreements with the County: f 1.2 The cost of operating, maintaining, and developing the Airport will be paid solely from Airport Revenues and such government grants as may be received by the County and lawfully used for such purposes, without the use of ad valorem taxes or other County revenue or pledges so as not to place any burden on taxpayers or residents of the County. 1.3 The Augusta Aviation Commission shall establish, maintain, and collect such rates, fees, rentals, and other charges for the use and services of the Airport and revise the same from time to time whenever necessary, as to always provide Net Revenues (as hereinafter defined) sufficient to pay one hundred twenty-five percent (125%) of the current Annual Debt Service Requirement (which shall be defined in the Bond Resolution) on the County's Airport Revenue Bonds (as hereinafter defined), and to always provide Airport Revenues sufficient to pay all reserve and other payments provided for in the Bond Resolution (as hereinafter defined) and all other obligations and indebtedness payable out of the revenues of the Airport, and to satisfy such other requirements as may be established in the Bond Resolution. Such rates, fees, rentals, and other charges shall not be reduced so as to be insufficient to provide adequate Airport Revenues for such purposes. 1.4 In furtherance of this policy and in accordance with the authority conferred upon the Aviation Commission by the laws of the State of Georgia, the Aviation Commission shall establish and periodically adjust, as required, certain rates, fees, rentals, and other charges for the use and occupancy of Airport facilities so that such rates, fees, rentals, and other charges are scheduled to recover from the airlines and nonairline owners or operators of aircraft, on a reasonable and nondiscriminatory basis, the fully allocated costs of the facilities and services used by such airlines and nonairline owners or operators of aircraft. In recovering the costs of these facilities and services, the Aviation Commission shall take into account all Airport revenue. SECTION 2. DEFINITIONS The follow terms', whenever used in this Ordinance, in singular or plural form, shall have the following meanings. 2.1 "Air Transportation" shall mean the carriage of persons, property, cargo, and mail by aircraft. 2.2 "Aircraft Arrivals" shall mean the landing of aircraft at the Airport, including, without limitation, scheduled, charter, sightseeing, test, ferry, courtesy, and inspection flights or any other flights. Aircraft Arrivals shall not include any flight that immediately returns to the Airport after takeoff because of mechanical, meteorological, or other precautionary reasons. 2.3 "Aircraft Gates" shall mean those portions of the Airport's Apron Area designated by the Aviation Commission from time to time for aircraft parking at the Terminal Building in order to board and discharge passengers. 2.4 "Airline" shall mean any entity engaging in the business of providing Air Transportation services at the Airport. 2.5 "Airline Rentable Space" shall mean the total of an Airline's Exclusive Use Space and Preferential Use Space. 2.6 "Airport" shall mean the lands and facilities owned by the County and operated by the Aviation Commission, known collectively as Augusta Regional Airport at Bush Field as it now exists or as it may change from time to time in the future. 2.7 "Airport Cost Centers" shall mean the following areas which shall be used to account for Airport revenues and expenses and to calculate and adjusting certain rents and fees described herein: 2.8 "Airfield Area" shall mean those areas of the Airport, as they now exist or as they may hereafter be modified, changed, or developed, that provide for landing and takeoff, taxiing, parking, or other operations of aircraft on the ground. 2.9 "Apron Area" shall mean the area dedicated to parking and ground handling of aircraft at the Terminal Building, as it now exists or may be constructed or otherwise changed in the future. 2.10 "Aviation Services" shall mean aircraft fueling activities and facilities and l' equipment dedicated to accommodating general aviation activity (i.e., public hangars, general aviation tiedowns, general aviation apron, and general aviation terminal), together with the facilities and equipment dedicated to aircraft fueling activities. 2.11 "Loading Bridges" shall mean any loading bridges owned by the Aviation Commission serving aircraft at the Terminal Building. 2.12 "Terminal Area" shall mean the access road and parking areas surrounding the Terminal Building, as such areas now exist or as they may hereafter be modified, changed, or developed. 2.13 "Terminal Building" shall mean the terminal building serving the Airlines as it now exists or as it may hereafter be reconstructed, modified, changed, or developed. After the Date of Beneficial Occupancy of the new passenger terminal complex, Tem1inal Building shall mean the new Terminal Building currently being planned at the Airport by the Aviation Commission and including related signage, landscaping, and curbside areas. 2.] 4 "Other Buildings and Areas" shall mean those portions of the Airport not included in the Airport Cost Centers. 2.15 "Airport Director" shall mean the person designated by the Aviation Commission to exercise functions with respect to the rights and obligations of the Aviation Commission under this Ordinance. Said tenn shall also include any person expressly designated by the Aviation Commission to exercise functions with respect to the rights and obligations of the Airport Director under this Ordinance, 2.16 "Airport Revenue Bonds" shall have the meaning set forth III the Bond Resolution. 2. 1 7 "Airport Revenues" shall have the meaning set forth in the Bond Resolution. 2.18 "Annual Budget" shall mean the Airport capital and maintenance and operating budget prepared by the Airpol1 Director and approved by the County, as amended from time to time. 2.19 "Annual Debt Service Requirement" shall have the meaning set forth in the Bond Resolution. ( 2.20 "Bonds" shall mean debt instruments of the County issued or made for the purpose of financing or refinancing the cost, or a portion thereof, of any improvements to the Airport, the payment of which debt is secured by a pledge of and lien on Airport Revenues. 2.21 "Bond Resolution" shall mean any Bond Resolution of Augusta-Richmond County, and any Series Resolution authorizing the issuance of Bonds, other than Special Purpose Facility Bonds, payable from Airport Revenue. 2.22 "Certificated Maximum Landing Weight" shall mean the maximum weight, in thousand (1,000) pound units, that each aircraft operated by an Airline is authorized by the Federal Aviation Administration to land at the Airport, as recited in the Airline's flight manual governing that aircraft type. 2.23 "Date of Beneficial Occupancy" or "DBO" shall mean that date or dates upon which the premises, or a substantial portion thereof, in the new 2004 passenger terminal building, or other improvements at the Airport that are financed, in whole or in part, by proceeds of Bonds, are so substantially complete that they are usable by the Airlines and the public without hazard or undue inconvenience, but in no event later than thirty (30) days after the Aviation Commission notifies the Airlines that the premises have been certified by the project architect/engineer as available for public use and Airline occupancy. 2,24 "Exclusive Use Space" shall mean the space leased by the Aviation Commission to an Airline from time to time for the Airline's exclusive use. 2.25 "Fiscal Year" shall mean the twelve (12) month period beginning January I of any year and ending December 31 of the following year or any other period adopted by the County for its financial affairs. 2.26 "Joint Use Formula" shall mean the formula used to prorate the specified charge according to the ratio of the number of each Airline's enplaning passengers at the Airport during the most recent month for which such information is available to the total number of enplaning passengers of all Airline users at the Airport during that same month. 2.27 "Joint Use Space" shall mean the premises leased by the Aviation Commission jointly to an Airline and one or more other Airlines from time to time for common use by such Airlines. 2.28 "Net Revenues" shall mean Airport Revenues, less all Operation and Maintenance Expenses, and amounts deposited to the Rebate Fund. 2.29 "Operation and Maintenance Expenses" shall have the meaning set forth in the Bond Resolution. 2.30 "Nonairline Revenues" shall mean Airport Revenues less fees and other charges collected from the Airlines pursuant to this Ordinance or pursuant to operating agreements between the County and one or more Airlines. 2.31 "Passenger Holdrooms" shall mean the passenger waiting rooms located inside the Terminal Building adjacent to the Aircraft Parking Positions. 2.32 "Preferential Use Space" shall mean the premises from time to time provided by the Aviation Commission to an Airline for its preferential and nonexclusive use and shall include Passenger Holdrooms, Aircraft Parking Positions, and Loading Bridges. 2.33 "Total Landed Weight" shall mean the sum of the Certificated Maximum Landing Weights for all Airline Aircraft Arrivals over a stated period of time. Said sum shall be rounded up to the nearest thousand (1,000) pound unit for all landing fee computations. 2.34 "Usable Space" shall mean the total square footage in the Terminal Building less mechanical and utility space. SECTION 3. SUBORDINATION TO BOND RESOLUTION This Ordinance is subject and subordinate to the terms, covenants, and conditions of any Bond Resolution authorizing the issuance of Airpol1 Revenue Bonds by Augusta-Richmond County. SECTION 4. PAYMENT OF RENTS AND FEES. 4.1 Time of Payment. Rents for Exclusive Use Space, Preferential Use Space, Joint Use Space, and the Apron Area and Loading Bridge Use Fees shall be payable, without deduction or setoff, in monthly installments, in advance, on or before the first day of each month. Landing fees shall be due on the first day of, each month for the preceding calendar month of operations, and shall be payable, without deduction or setoff, on or before the tenth day of each month. Rents and fees shall be paid by check to Augusta Regional Airport, which shall be delivered or mailed, postage prepaid, to 1501 Aviation way, Augusta, Georgia 30906. 4.2 Interest on Overdue Rents and Fees. Any rents and fees not received within three (3) business days after the due date shall accrue interest at the maximum interest rate then allowable by applicable law; provided, however, that if no maximum interest rate is then provided by applicable law, the interest rate shall be twelve percent (12%) per annum. Such interest shall not accrue with respect to disputed items being contested in good faith by an Airline. 4.3 Insufficient Revenue. The Aviation Commission reserves the right to adjust Airport rents and fees at any time during a given Fiscal Year in the event that such adjustment is deemed necessary by the Aviation Commission to satisfy the requirements of Airport SECTION 5. MONTHLY ACTIVITY REPORT. 5.1 Each Airline shall furnish to the Aviation Commission, on or before the tenth (10th) day of each month, an accurate report of its operations at the Airport, on forms prescribed by the Aviation Commission. Said report shall include: (1) the Airline's total Certificated Maximum Landing Weight of each type of aircraft, and (2) the total enplaned and deplaned freight, mail, and other cargo for such month. Each Airline shall also report the above information for the aircraft of others, including charter flights, for which it provides ground service. 5.2 If any Airline fails to furnish the Aviation Commission with the report required by this section, that Airline's landing fee shall be detennined by assuming that the Total Landed Weight for that Airline during the preceding month was one hundred and twenty- five percent (125%) of the Total Landed Weight during the most recent month for which such figure is available for that Airline. SECTION 6. AVIATION COMMISSION RECORDS. 6.1 The Aviation Commission shall maintain accounting records documenting the following items for each Airport Cost Center: (1) Airport Revenue, (2) Airport Expense, and (3) other expenses of the Aviation Commission. 6.2 The Aviation Commission shall further maintain records evidencing the allocation of capital funds obtained from the proceeds of the sale of Bonds or other capital fund sources to each Airport Cost Center. Included in the allocation to each Airport Cost Center shall be that cost center's proportionate share of Bond issuance expense, capitalized interest, and funding of special funds determined in accordance the allocation of costs funded through bond proceed or other capital sources. SECTION 7. CALCULATION OF RENTS AND FEES. 7.1 From the Date of Beneficial Occupancy of the new terminal, rents and fees, as set forth in this Ordinance, shall be adj usted at the beginning of each Fiscal Year based upon the Annual Budget approved by the Aviation Commission and adopted by the County. The adjustment shall be effective on the first (151) day of each Fiscal Year to which it applies (or in the case of the Fiscal Year in which DBO occurs, on DBO in accordance with the terms of this Ordinance). The foregoing notwithstanding, rents and fees shall be adjusted whenever the Aviation Commission determines that Airport Revenues are not sufficient to satisfy the requirements of this Ordinance. A. Calculation of Terminal Building Rental Rates. The Aviation Commission shall calculate the rental rates for space in the Terminal Building in the following manner: I. The rental rates for Airline Rentable Space in the existing Terminal Building shall be Thirty Dollars ($30) per square foot per year. This rate will be evaluated annually and may be increased, if necessary, to recover costs of operating the existing or temporary Terminal Building facilities. The rent for all Joint Use Space shall be prorated among the Airlines according to the Joint Use FOrmula. 2. The rental rates to be effective upon occupancy of the new Terminal Building and thereafter shall be calculated pursuant to paragraphs 2, 3 and 4 of this subsection. Terminal Building rents are payable in accordance with Section 4. The Aviation Commission shall calculate the Terminal Building costs for the succeeding fiscal Year (or in the case of the Fiscal Year in which DBO occurs, for that portion of such Fiscal Year commencing with DBO), by totaling the following estimated amounts, as set forth in the Aviation Commission's Annual Budget: a. The total of the direct and indirect Operation and Maintenance Expenses allocable to the Terminal Building; b. An amount equal to 1.25 times the pro rata portion of the Annual Debt Service allocate to the Temlinal Building net of available PFC proceeds authorized for the payment of a portion of Ternlinal Building Annual Debt Service and coverage; C. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Tenninal Building; d. Any other Airport Expense allocable to the Terminal Building not included in Paragraphs (a) through (c) above; and e. An amount equal to any deficit or credit estimated for operation of the Terminal Building during the then-current Fiscal Year or any adjustment carried over from preceding Fiscal Years to reflect any difference between actual versus estimated expenses. 3. The average rental rate shall then be calculated by dividing the Terminal Building costs computed above by the amount of Usable Space. The average rental rate shall then be multiplied by the total amount of square footage occupied by Airline to determine the total annual Terminal Building space rent payable by each Airline. 4. The space rents for all Joint Use Space shall be prorated among all Airlines according to the Joint Use Formula and each Airline shall pay its pro rata share of such space rents. 5. Terminal Building rents are payable monthly in accordance with Section 4. B. .calculation of Apron Area Fee, The Aviation Commission shall calculate Apron Area fee, to be effective upon DBO of the new Terminal building and thereafter, in the following manner: 1. The Aviation Commission shall calculate Apron Area Fee for the succeeding Fiscal Year (or in the case of the Fiscal Year in which DBO occurs, for that portion of such Fiscal Year commencing with DBO) by totaling the following estimated amounts, as set forth in the Annual Budget: a. The total Operation and Maintenance Expenses allocated to the Apron Area; b. An amount equal to 1.25 times the pro rata portion of the Annual Debt Service allocate to the Apron Area net of available PFC proceeds authorized for the payment of a portion of Apron Area Annual Debt Service and coverage; c. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Apron Area; d. Any other Airport Expense allocable to the Apron Area not included In Paragraphs (a) through (c) above; and e. An amount equal to any deficit or credit estimated for operation of the Apron Area during the then-current Fiscal Year or any adjustment carried over from preceding Fiscal Years to reflect any difference between actual versus estimated expenses. 2. The sum of the expenses identified In (a) to (e) above equals the Apron Area Requirement. The Preferential Apron Area Fee shall then be calculated by dividing the Apron Area Requirement by the number of Aircraft Gates at the Terminal Building. An Airline's Preferential Apron Area Fee shall then be calculated by multiplying the total number of Aircraft Gates assigned to and used by Airline times the Apron Area rental rate per Aircraft Gate. The Preferential Apron Area Fee is payable monthly in accordance with Section 4 C. Calculation of Loading Bridge Use Fee. The Aviation Commission shall calculate Loading Bridge Use Fees, to be effective upon DBO of the new Terminal building, in the . following manner: ] . The Aviation Commission shall calculate the Loading Bridge Use Fee for the succeeding Fiscal Year (or in the case of the Fiscal Year in which DBO of the Loading Bridges occurs, for that portion of such Fiscal Year commencing with DBO) by totaling the following estimated amounts as set forth in the Annual Budget: a. The total Operation and Maintenance Expenses allocated to the Loading Bridges; b. An amount equal to ] .25 times the pro rata portion of the Annual Debt Service Requirement net of PFC proceeds, if any, authorized to pay debt service allocable to the Loading Bridges, or such other amount as may be required by the Bond Resolution; c. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Loading Bridge; d. Any other Airport Expense allocable to the Loading Bridge not included in Paragraphs (a) through (c) above; and e. An amount equal to any deficit or credit estimated for operation of the Loading BIidge during the then-current Fiscal Year or any adjustment carried over from preceding Fiscal Years to reflect any difference between actual versus estimated expenses. 2. The Loading Bridge Use Fee rate per Loading Bridge shall be calculated by dividing the Loading Bridge Use Fee calculated in accordance with paragraph (a) to (e) above by the number of Loading Bridges. An Airline's Loading Bridge Use Fee shall then be calculated by multiplying the Loading Bridge Use Fee rate per Loading Bridge by the number of Loading Bridges assigned to Airline. The Loading Bridge Use Fee is payable monthly in accordance with Section 4. D. Calculation of Landing Fee Rate. Until DBO of the new Terminal Building, the landing fee rate shall be $1.50 per one thousand (1,000) pounds of Certificated Maximum Landing Weight. This rate shall be evaluated annually and may be increased, if necessary, to recover the costs of operating the Airport. I. Beginning at the Date of Beneficial Occupancy of the new Terminal Building, the Aviation Commission shall calculate the landing fee rate for the Fiscal Year commencing January 1st, and for each succeeding Fiscal Year, based upon the Aviation Commission's proposed Annual Budget for the succeeding Fiscal Year by totaling the following estimated amounts: a. The total of the direct and indirect estimated Operation and Maintenance Expenses of the Airport; b. An amount equal to the Airport Annual Debt Service (plus Coverage), as required by the Bond Resolution; c. The amount of deposits to any funds and accounts required by the Bond Resolution; d. An amount equal to fifty percent (50%) of the Aviation Services net revenues as projected by the Aviation Conunission in the Annual Budget; e. Any overpayment or underpayment estimated for operation of the Airport during the then-current Fiscal Year, or any adjustment carried over from the preceding Fiscal Year, to reflect any difference between actual versus estimated revenues or expenses; and f. Any other Airport Expense not included in Paragraphs (a) to (e) above. 2. The Airport Requirement for the succeeding Fiscal Year shall be calculated by subtracting from total Airport Expense [the total of (a) to (f) above] (a) the total budgeted unrestricted Airport Revenue (including Airline Terminal Building rentals, Loading Bridge Use Fees, and Preferential Apron Area Fees, but excluding Signatory Airline , . Landing Fees), and (b) other available funds (prior year funded coverage if available). 3. The landing fee rate for the succeeding Fiscal Year shall be calculated by dividing the net Airport Requirement computed above by the estimated Total Landed Weight of all Airline Aircraft Arrivals at the Airport for the succeeding Fiscal Year as estimated by the Aviation Commission. 4. The landing fee shall be calculated by multiplying the Airline's portion of Total Landed Weight for the month by the landing fee rate then in effect. Section 8. Security Deposit. 8.1 To guarantee the timely payment of all rentals and fees provided for herein, Airline shall remit to the Aviation Commission prior to Airline's use of space or Airline's operations or activities in regard to the Airport and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect the Aviation Commission, a security deposit in the amount of: (a) Airline's estimated Landing Fees for two (2) months (as determined on the basis of Airline's published flight schedule as of that date times the actual Landing Fee rate effective as of that date); (b) Airline's estimated Exclusive Use Space, Preferential Use Space, and Joint Use Space rentals for 2 months (as determined on the basis of Airline's actual space use and occupancy as of the effective date of this Ordinance. The security deposit may be adjusted by the Aviation Commission as Airline's flight activity and space rental commitment increases or decreases. 8.2 Such deposit shall be in the forn1 of an irrevocable letter of credit, or other security satisfactory to the Aviation Commission, in a form approved by the Airport Director. Document(s) evidencing this deposit shall provide that the same shall remain in full force and effect for a period extending 2 months following termination of Airline's use of the space or operations or activities in regard to the Airport. 8.3 If payments required to be made by Airline under the terms of this Ordinance or payment of Passenger Facility Charge proceeds are not made, the Aviation Commission shall have the right to forfeit, take, and use so much of such security deposit as may be necessary to make such payment in full and to exercise any other legal remedies to which it may be entitled, after notice. SECTION 9. INSURANCE. 9.1 By use and occupancy of space on Airport premises, Airline understands and agrees that it shall, at its sole expense and in a manner acceptable to the County and the Aviation Commission, purchase and maintain in force the following insurance coverage for itself and its officers, agents, employees, passengers, guests, patrons, contractors, subcontractors, licensees, subtenants, invitees, and suppliers. 9.2 All such insurance hereunder shall be maintained with Insurance underwriters who have a Best's rating or equivalent of A:X or who have been approved by the Airport Director. 9.3 All liability insurance policies shall provide coverage that includes, or has the same substantive effect as, the following wording: A. "Augusta-Richmond County and each of its officers, agents, elected representatives, volunteers, and employees, in their respective capacities as such, shall be additional insureds hereunder with respect to the products, premises, and operations of the named insured." B. "It is agreed that this insurance policy shall apply as prImary, and any insurance and/or self-insurance as may be maintained by the County or its officers, agents, elected representatives, volunteers, and employees shall apply in excess of, and shall not contribute with insurance provided by, this policy." C. "This insurance shall not be materially changed, altered, canceled, or non- renewed until after thirty (30) days advance written notice has been given to the County except that only ten (IO) days notice shall be required in the event of cancellation due to non-payment of premium." . . 9.4 At least ten (10) calendar days pnor to Airline's use of space or Airline's operations or activities in regard to the Airport and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect the County, Airline shall furnish the County evidence of all insurance policies negotiated. Prior to expiration of any then-current policy of insurance, Airline shall deliver to County evidence showing that such insurance coverage has been renewed. At least five (5) calendar days prior to the date of cancellation or reduction of coverage, as received in the written notice frorn the insurer, Airline shall deliver to the Airport Director, evidence showing reinstatement or other provision for the required insurance. A. All such evidence shall be in the form of certificates of insurance satisfactory to the Airport Director, accompanied by a certified true copy of an endorsement to each policy containing the language required by this paragraph and, if applicable, cross-liability coverage. B. Aircraft liability insurance and comprehensive form general liability insurance covering bodily injury, personal injury, property damage, cross- liability, products/completed operations liability, premise liability, and contractual liability, shall be maintained with a liability limit of not less than Three Hundred Million Dollars ($300,000,000.00) combined single limit per occurrence, on occurrence forn1 policy. Said limit shall be reduced to One Hundred and Fifty Million Dollars ($150,000,000.00) where Airline's maximum seating capacity on any aircraft operated by Airline is thirty (30) or less. With respect to coverage for products/completed operations and personal injury, except with respect to passengers, a sub-limit of not less than Twenty-Five Million Dollars ($25,000,000.00) per occurrence, shall be permitted with approval of the Airport Director. Said aircraft liability shall be applicable to owned, non-owned, and hired aircraft. C. Automobile liability insurance with a liability limit of not less than Five Million Dollars ($5,000,000.00) shall be maintained for all owned, non- " owned, and hired vehicles operated by or on behalf of Airline on the leased space, or elsewhere at the Airport, including any additional or replacement vehicles. D. Liquor liability insurance for Airline servmg alcoholic beverages shall be maintained in an amount not less than Ten Million Dollars ($10,000,000.00) per occurrence. E. Hangarkeepers liability msurance or other appropriate msurance shall be maintained in an amount adequate to cover any aircraft or non-owned property in the care, custody, and control of Airline at the Airport, but in any event in an amount not less than Five Million Dollars ($5,000,000.00) per occurrence. F. Employer's liability insurance shall be maintained in an amount not less than One Million Dollars ($1,000,000.00) per occurrence. G. Airline shall likewise maintain workers' compensation insurance or evidence of self-insurance, in accordance with the laws of the State of Georgia, covering all of its employees who may, from time to time, be at the Airport in such capacity. Airline shall require each of its agents, licensees, subcontractors, and suppliers of and to the leased premises to maintain such workers' compensation insurance covering their employees when on Airport premises in connection with Airline's operations hereunder. The workers' compensation policy(s) required hereunder shall be endorsed to state that the workers' compensation carrier waives its right of subrogation against the County, its officers, agents, elected representatives, volunteers, and employees. Upon request by the Airport Director, Airline shall furnish to the Airport Director evidence of such workers' compensation insurance in a form acceptable to County. H. Environmental/Pollution Liability Insurance with a limit of not less than Five Million Dollars ($5,000,000.00) shall be maintained, including coverage for Third Party Pollution Liability, remediation coverage, and offsite cleanup. The requirement to maintain Environmental/Pollution Liability msurance, with a limit for EnvironmentallPollution Liability, may be satisfied by securing a policy of insurance for this coverage or providing to the County a letter on company letterhead stating that Airline is self-insured for this coverage. 1. The parties understand and agree that the minimum limits of the insurance required herein may become inadequate during the term of Airline's use of space or Airline's operations or activities in regard to the Airport and that, if it in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect the County, Airline and County agree that each will increase such minimum limits by reasonable amounts on request of the Airport Director, with concurrence of the County Risk Manager. J. If at any time Airline fails to obtain or maintain in force the insurance required herein, such failure shall constitute a default permitting County, at its option, to immediately terminate Airline's use of the space or Airline's operations or activities in regard to the Airport and that in any way, directly or indirectly, contingently or otherwise, affect or might reasonably affect the County. K. If any claim for damages is filed with Airline or if any lawsuit is instituted against Airline, Airline shall give prompt and timely notice thereof to Airport Director, provided that claims and lawsuits subject to such notice are only those that arise out of or are in any way cOlmected with the use of leased premises by Airline or its officers, representatives, agents, employees, passengers, guests, patrons, contractors, subcontractors, licensees, subtenants, invitees, or suppliers or connected with Airline's operations or activities in regard to the Airport and that in any way, directly or indirectly, contingently or otherwise, affect or might reasonably affect County. Notice shall be deemed prompt and timely if given within thirty (30) calendar days following the date of receipt of a claim or ten (10) calendar days following the date of service of process of a lawsuit. Accident or property damage claims in an amount less than One Thousand Dollars ($1,000.00) shall be excluded from . . the requirements of this paragraph. L. If any claim for damages is filed with County or if any lawsuit is instituted against County, County shall give prompt and timely notice thereof to Airline, provided that claims and lawsuits subject to such notice are only those that arise out, of or are in any way cOlmected with, operation of the Airport by County and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect Airline. Notice shall be deemed prompt and timely if given within thirty (30) calendar days following the date of receipt of a claim or ten (10) calendar days following the date of service of process of a lawsuit. Accident or property damage claims in an amount less than One Thousand Dollars ($1,000.00) shall be excluded from the requirements of this paragraph. M. The time limitations set forth above are directory. If the notice required to be given is not given within the time limitations set forth herein, then the party giving notice shall not be precluded from establishing that notice actually given was timely under the circumstances of the particular claim or lawsuit, unless by the failure to give such notice within the applicable time period, the other party has been prejudiced in its ability to consider such claim or to respond to, or properly defend, such lawsuit. If the other party is so prejudiced by a late notice, then the late notice shall not be deemed to be prompt and timely. SECTION 10. INDEMNIFICATION. 10.1 It is the Aviation Commission's policy that, as a condition of Airport use, each Airline shall indemnify the Aviation Commission from losses arising out of Airline's use and/or occupancy of Airport facilities. 10.2 By continuing to use and occupy Airport facilities following notice of this Ordinance, Airline is deemed to have agreed to protect, defend, and hold the County and Aviation Commission and their officers and employees completely harmless from and against any and all liabilities, losses, suits, claims, judgments, fines, or demands arising by reason of injury or death of any person or damage to any property, including all reasonable costs for investigation and defense thereof (including, but not limited to, attorney fees, court costs, and expert fees), of any nature whatsoever arising out of or incident to Airline's use or occupancy of, or operation of Airline at or about, the Airport or the acts or omissions of Airline's officers, agents, employees, contractors, subcontractors, licensees, or invitees, regardless if injury, death, or damage may occur, unless such injury, death, or damage is caused by the sole negligence of the Aviation Commission. The Aviation Commission shall give Airline reasonable notice of any such claims or actions. SECTION 11. RULES AND REGULATIONS. 11.1 Each and every Airline must observe and obey all lawful and reasonable rules and regulations promulgated from time to time by the County and Aviation Commission governing conduct on and operations at the Airport and use of its facilities. 11.2 No Airline shall violate nor permit its officers, agents, employees, contractors, subcontractors, licensees, or invitees acting on Airline's behalf to violate any such rules and regulations that are now in effect or as may from time to time be promulgated by the County and the Aviation Commission. SECTION 12. COMPLIANCE WITH LAW 12.1 No Airline shall use the Airport or any part thereof, or permit the same to be used by any of its employees, officers, agents, contractors, subcontractors, subtenants, invitees, or licensees for any illegal purposes and will, at all times, comply with all applicable Ordinances, laws, rules, or regulations of any government, and of any political division or subdivision or agency, authority, or commission thereof that may have jurisdiction to pass regulations with respect to the use and occupancy of Airport facilities. . . j T. SECTION 13. SEVERABILITY. 13.1 If any section of this Ordinance or portion thereof is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such holding shall not invalidate the remaining portions of this Ordinance. SECTION 14. AMENDMENTS. 14.1 Except to the extent expressly prohibited by or inconsistent with the Bond Resolution, the County reserves the right to amend this Ordinance from time to time or to repeal this Ordinance in its entirety. It is the County's intent to amend this Ordinance from time to time as necessary to make it consistent with, and satisfy all of the revenue- related requirements of the Bond Resolution. SECTION 15. CONFLICTS 15.1 All ordinances and Ordinances or parts of ordinances or Ordinances in conflict herewith are hereby repealed to the extent of sllch conflict. SECTION 16. PENALTIES. 16.1 Any violation of this Ordinance shall be punishable as provided by law. SECTION 17. EFFECTIVE DATE. 17.1 This Ordinance shall take effect immediately upon its adoption in accordance with applicable laws. Adopted thiS3 _ day of Nov , 2004. . ~, . Passed: 1st Reading Oct19, 2004 2nd Reading November 3, 2004 Attest: Augusta, Georgia ~, __u_JffY BY:~. I~ Published in the Augusta Chronilce November~, 2004 J "