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HomeMy WebLinkAboutORD 7031 AMEND CITY CODE AIRLINE RENTS FEES OTHER CHARGES '\ i Attachment number 2 Page 1 of2 ORDINANCE NO.7031 AN ORDINANCE TO AMEND THE AUGUSTA-RICHMOND COUNTY CODE; TO REPEAL SECTIONS ~ 1-3-8.1 THROUGH ~ 1-3-8.6; TO RESTATE THESE SECTIONS AS SECTIONS ~ 1-3-8.1 THROUGH 1-3-8.14; TO UPDATE AUGUSTA-RICHMOND COUNTY FISCAL POLICY AND METHOD SO AS TO ESTABLISH AND ADJUST AUGUSTA REGIONAL AIRPORT AT BUSH FIELD AIRLINE RENTS, FEES AND OTHER CHARGES; TO PROVIDE FOR LEVY AND COLLECTION OF SAID FEES; TO PROVIDE PENALTIES FOR UNTIMELY PAYMENT OF SAID AIRLINE RENTS, FEES AND OTHER CHARGES; TO PROVIDE FOR SEVERABILITY; TO REPEAL ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; TO PROVIDE AN EFFECTIVE DATE AND FOR OTHER PURPOSES. BE IT ORDAINED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION AND IT IS HEREBY ORDAINED BY THE AUTHORITY OF SAME, that the Augusta-Richmond County Code be amended as follows: SECTION 1. Augusta Richmond-County Code Sections 1-3-8-1 through Sections 1-3-8.6 as set forth in Ordinance No. 6407 enacted July 3, 2001 are hereby repealed in their entirety and are amended and restated as set forth in "Exhibit A" hereto as Augusta-Richmond County Code Sections 1-3-8.1 through 1-3-8.14. SECTION 2. This ordinance shall become effective upon its adoption in accordance with applicable laws. SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Adopted this ~ day of 'j .aic. ~ , 2008. Second Reading Waived ~ ;€;ommissIl1n li~~ ~.::; ~ A~:" ,;::: j1 '~ EST..." j!f ~.. @"" I'''' GO'" ff ~.~k , ".4Jf:>a,~oe.& 4' "'4,~ A .... '1~"I '->eORG1~ __- -.'t:Q.~B:.1)':tt~~~~ Item # 65 ( Attachment number 2 Page 2 of 2 CERTIFICATION The undersigned Clerk of Commission, Lena J. Bonner, hereby certifies that the foregoing Ordinance was duly adopted by the Augusta-Richmond County Commission on , 2008 and that such Ordinance have not been modified or rescinded as of the date hereof and the undersigned further certifies that attached hereto is a true copy of the Ordi ance which s approved and adopted in the foregoing meeting(s). I Published in the Augusta Chronicle. Date: Publish in the Augusta Chronicle Feb 21, 2008! Item # 65 Attachment number 1 Page 1 of 19 EXHmIT "A" Table of Contents Sec. 1-3-8.1 Augusta Regional Airport Fiscal Policy..................................................... 2 Sec. 1-3-8.2 Defin iti 0 ns...................................................................................................... 3 Sec. 1-3-8.3 Effective date. ................................................................................................ 6 Sec. 1-3-8.4 Privileges........................................................................................................ 6 Sec. 1-3-8.5 Subordination to Bond Resolution .............................................................. 7 Sec. 1-3-8.6 Time and Place of Payment of Rents and Fees. ......................................... 7 Sec. 1-3-8.7 Calculation of Rents and Fees. ....................................................................9 Sec. 1-3-8.8 Extraordinary Adjustments of Rents and Fees........................................ 13 Sec. 1-3-8.9 Security Deposit. ......................................................................................... 14 Sec. 1-3-8.10 Insurance. .................................................................................................. 14 Sec. 1-3-8.11 Indemnification. ........................................................................................17 Sec. 1-3-8.12 Compliance with Law - Rules and Regulations.................................... 18 Sec. 1-3-8.13 Waiver of Damage. ...................................................................................18 Sec. 1-3-8.14 Acknow ledgmen t. ...................................................................................... 19 Item # 65 Attachment number 1 Page 2 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 2 DIVISION 2 AIRLINE RENTS AND FEES FOR AUGUSTA REGIONAL AIRPORT SEe. 1-3-8.1 AUGUSTA REGIONAL AIRPORT FISCAL POLICY a) 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: b) 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. c) 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 (125) percent 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 ofthe revenues ofthe 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. d) 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. Item # 65 '\ Attachment number 1 Page 3 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 3 SEC. 1-3-8.2 DEFINITIONS. The following words, terms and phrases shall have the meanings respectively ascribed to them in this Article. a) Aircraft Arrival(s) shall mean the arrival of all non-governmental aircraft (including, without limitation, scheduled and nonscheduled flights, training and maintenance flights, or aircraft diversions) at the Airport. b) "Aircraft Parking Position(s)" shall mean the location(s) on the Aircraft Parking Apron where aircraft are parked for the purpose of enplaning and deplaning passengers at the Terminal Building. c) "Airfield" shall mean those portions ofthe Airport which provide for the landing, takeoff, taxiing, movement, or staging of aircraft including navigational aids, hazard designation and warning devices, airfield security roads, fencing, lighting, runway protection zones, aviation easements and interests in property utilized in connection therewith. d) "Airline" shall mean any entity engaging in the business of providing Air Transportation services and operating aircraft into and out ofthe Airport under Part 121 or Part 135 of the F ARs, or the practical equivalent of said Parts and using the Terminal Building, Airfield Area, and/or the Apron Area e) "Airline Rentable Space" shall mean the total of an Airline's Exclusive Use Space and Preferential Use Space. 1) "Airport" shall mean the Augusta Regional Airport at Bush Field located in Augusta, Georgia as it now exists or as it may change from time to time in the future. g) "Airport Cost Centers" shall mean the following areas which shall be used in accounting for Airport revenues and expenses and for calculating and adjusting certain rents and fees described herein: i) "Airjield 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. ii) ''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 otherwise changed in the future. iii) ''Aviation Services" shall mean aircraft fueling activities and facilities and 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. Item # 65 Attachment number 1 Page 4 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 4 iv) "Loading Bridges" shall mean any loading bridges owned by the Aviation Commission serving aircraft at the Terminal Building. v) "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. vi) "Terminal Building" shall mean the passenger terminal building at the Airport, as it is today or may hereafter be modified or expanded, and including related signage, landscaping, and curbside areas. (I) "Other Buildings and Areas" shall mean those portions ofthe Airport not included in the preceding Airport Cost Centers. (m) "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 term 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. (n) "Airport Revenues" shall have the meaning set forth in the Bond Resolution. (0) "Air Transportation" shall mean the conduct of the business of commercial air transportation of persons, property, cargo and mail. (P) "Annual Budget" shall mean the Airport capital and maintenance and operating budget prepared by the Airport Director and approved by the County, as amended from time to time. (q) "Annual Debt Service Requirement" shall have the meaning set forth in the Bond Resolution. (r) "Bonds" shall mean debt instruments ofthe 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. (s) "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. (t) "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. (u) "Coverage" shall mean, for any series of Bonds, the percentage of Annual Debt Service that the Aviation Commission covenants to generate from net revenues, over and above the Annual Debt Service for such series of Bonds, pursuant to the Bond Resolution. Said term shall also mean the dollar amount computed by multiplying said percentage by the Annual Debt Service for such series of Bonds. (v) "Enplaned Passengers" shall mean all passengers enplaned by an Airline on aircraft operated at the Airport. Without limiting the generality of the foregoing, Item # 65 Attachment number 1 Page 5 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 5 Enplaned Passengers shall also include persons for whom the Airline has provided the particular air transportation on a substantially complimentary basis such as employees of an airline, family members of such employees, persons traveling on "buddy passes," employees of other airlines, and those passengers redeeming "frequent flyer" awards and travel vouchers. (w) "Exclusive Use Premises" shall mean those premises which have been licensed exclusively to an Airline. (x) "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. (y) "FAA" or "Federal Aviation Administration" shall mean the Federal Aviation Administration created by the federal government under the Federal Aviation Agency Act of 1958 or such similar federal agency as may from time to time have similar jurisdiction over the Airlines or their businesses. "Fiscal Year" shall mean the twelve (12) month period beginning January 1 of any year and ending December 31 of the following year or any other period adopted by the County for its financial affairs. (z) "Joint Use Formula" shall mean the formula used to prorate the specified charge according to the ratio ofthe 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. (aa) "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. (bb) "Landing Fee(s)" shall mean the payment required of Airline each month for the use of the Airfield. (cc) Landing Fee Rate shall mean the rate multiplied by each 1,000 pounds of Certificated Maximum Landing Weight or fraction thereof to calculate Landing Fees. (dd) "Net Revenues" shall mean Airport Revenues, less all Operation and Maintenance Expenses, and amounts deposited to the Rebate Fund. (ee) "Operation and Maintenance Expenses" shall have the meaning set forth in the Bond Resolution. (fj) "Passenger Holdrooms" shall mean the passenger waiting rooms located inside the Terminal Building adjacent to the Aircraft Parking Positions. (gg) "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. Item # 65 Attachment number 1 Page 6 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 6 (hh) "Premises" shall mean the Exclusive Use, Preferential Use, and Joint Use Premises licensed to a specific Airline. (ii) "Rental Rate" shall mean the annual charge per square foot for the space licensed to the Airlines. (jj) "Rentable Space" shall mean the airline, concession, Transportation Security Administration passenger processing, administrative square footage in the Terminal Building. (kk) "Total Landed Weight" shall mean the sum ofthe 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. (11) "Terminal Rental" shall mean the aggregate of monthly payments required of a specific Airline in each Fiscal Year for the license granted such Airline to occupy specific Premises in the Terminal Building. (mm) "Total Landed Weight" shall mean the sum of Certificated Maximum Landing Weight of all Aircraft Arrivals over a stated period oftime. SEe. 1-3-8.3 EFFECTIVE DATE. This Ordinance shall become effective on the date approved Augusta Commission (the "Effective Date") and shall continue in effect until superseded by a replacement ordinance or by an agreement between the Airlines serving the Airport and Augusta. SEe. 1-3-8.4 PRIVILEGES. (a) Rights. Each Airline is hereby granted the right to operate an Air Transportation system at the Airport for the carriage of persons, property and mail, including all activities reasonably necessary to such operation. (b) Premises. In connection with the operation of its Air Transportation system, Augusta does hereby grant to each Airline a month to month license to use the premises in the Terminal Building set forth below. By using and occupying the Premises, an Airline acknowledges satisfaction with the condition ofthe Premises and does hereby release and forever discharge Augusta from all liens and liability, damages and costs arising out of the use ofthe Premises. (c) Exclusive Use Premises. Each Airline serving the Airport may be granted a license to use the premises in the Terminal Building assigned for its exclusive use. The Airport Director will assign the exact amount and location of the exclusive use premise to each Airline. Assignment of Exclusive Use Premises is subject to change upon thirty (30) days advance written notice. (d) Preferential Use Premises. Each Airline serving the Airport shall be granted a license to use the Preferential Use Premises assigned to such Airline by the Airport Director Item # 65 Attachment number 1 Page 7 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 7 (together with all facilities, improvements, equipment and services which have been or may hereafter be provided for use in connection with such premises), subject to the rights of Augusta and other Airlines to use such facilities jointly. The Preferential Use Premises primarily consist ofthe Passenger Holdrooms and Aircraft Parking Positions. ( e) Joint Use Premises. Each Airline serving the Airport is hereby granted a license to use the Joint Use Premises (together with all facilities, improvements, equipment and services which have been or may hereafter be provided for use in connection with such premises) in common with other Airlines serving the Airport. The Joint Use Premises primarily consist ofthe arriving baggage handling area and the joint use airline employee break room in the Terminal Building. (f) Surrender of Possession. Each Airline shall perform normal maintenance in its Premises and keep such premises in good clean and sanitary condition. An Airline that vacates its Premises shall yield and deliver possession of the Premises to Augusta in clean and good condition, except for reasonable wear and tear and insured casualty. An Airline may remove its trade fixtures from the Premises but shall be responsible for and pay to Augusta the amount reasonably determined by Augusta to be the cost of repairing any damage caused by the removal of such trade fixtures. (Ord. No. 6407, ~ 1, 7-3-01) (g) Maintenance. Airline shall, at all times, maintain and repair its licensed Exclusive and Preferential Use Space in the Terminal Building so that it remains in a neat, clean, safe, and orderly condition. Airline will provide custodial maintenance in its Exclusive Use Space. (h) Repair. Airline shall repair at its cost or, at the Aviation Commission's option, reimburse the Aviation Commission for the cost of repairing, replacing, or rebuilding any damages to the Terminal Building or other portions of the Terminal Building caused by the acts or omissions of Airline, its officers, employees, or agents. Any repairs made by Airline shall be subject to inspection and approval by the Airport Director. SEC. 1-3-8.5 SUBORDINATION TO BOND RESOLUTION This division is subject and subordinate to the terms, covenants, and conditions of any Bond Resolution authorizing the issuance of Airport Revenue Bonds by Augusta- Richmond County. Conflict between the Bond Resolution and the Ordinance will be resolved in favor ofthe Bond Resolution. SEe. 1-3-8.6 TIME AND PLACE OF PAYMENT OF RENTS AND FEES. a) Time of Payment of Rents and Fees: 1. Rents for Exclusive Use Space, Preferential Use Space, 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. Item # 65 Attachment number 1 Page 8 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 8 2. Rents for the Joint Use Space shall be payable without deduction or setoff, in monthly installments, in advance, on or before the fifteenth day of each month. Each Airline's Joint Use Space rental shall be calculated in accordance with the Joint Use Formula based on the most recent Fiscal Year's passenger enplanement statistics available. 3. 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. b) Place of Payment: 1) Payments to the Aviation Commission may be made by wire transfer to the following account: Citibank N. A. BA Routing Number #021000089 AlC 30604518 FBO Citigroup Global Markets, Inc. One Chase Plaza New York, New York 10004 Credit to: Augusta Regional Airport Airport Revenue Fund Account #417-90443-1-0 2) If Airline elects not to make payments by wire transfer, payments to the Aviation Commission shall be made at the Office of the Airport Director as set forth below or at such other place as may hereafter be designated by the Aviation Commission. Airport Director Augusta Regional Airport 1501 Aviation Way Augusta, Georgia 30906 3) 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 (12) percent per annum. Such interest shall not accrue with respect to disputed items being contested in good faith by an Airline. Item # 65 Attachment number 1 Page 9 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 9 c) Monthly Activity Report: I) Each Airline shall furnish to the Aviation Commission, on or before the tenth 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. 2) If any Airline fails to furnish the Aviation Commission with the report required by this section, that Airline's Landing Fee shall be determined by assuming that the Total Landed Weight for that Airline during the preceding month was one hundred and twenty-five (125) percent of the Total Landed Weight during the most recent month for which such figure is available for that Airline. d) Aviation Commission Records: 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. 2) The Aviation Commission shall further maintain records evidencing the allocation of capital funds obtained from the proceeds ofthe 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. SEe. 1-3-8.7 CALCULATION OF RENTS AND FEES. a) From January 2008, rents and fees, as set forth in this division, shall be adjusted 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 day of each Fiscal Year to which it applies. The foregoing notwithstanding, rents and fees shall be adjusted whenever the Aviation Commission determines that Airport Revenues are not sufficient to satisfy the requirements Bond Resolution and ofthis division. i) Calculation of Terminal Building Rental Rate. Each year, the Aviation Commission will recalculate the Rental Rate for space in the Terminal Building in the following manner: Item # 65 Attachment number 1 Page 100f19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 10 (a) Terminal Building rents are payable in accordance with Section 1-3-8.6. The Aviation Commission shall recalculate the Terminal Building Rental Rate for the succeeding Fiscal Year, by totaling the following estimated amounts, as set forth in the Aviation Commission's Annual Budget: 1. The total ofthe direct and indirect Operation and Maintenance Expenses allocable to the Terminal Building; 2. An amount equal to 1.25 times the pro rata portion of the Annual Debt Service allocate to the Terminal Building net of available PFC proceeds authorized for the payment of a portion of Terminal Building Annual Debt Service and Coverage; 3. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Terminal Building; 4. Any other Airport Expense allocable to the Terminal Building not included in Paragraphs (1) through (3) above; and 5. An amount equal to any deficit or credit estimated for operation ofthe 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. (b) The average Rental Rate shall then be calculated by dividing the Terminal Building costs computed above by the amount of Rentable Space square footage in the Terminal Building. The average Rental Rate shall then be multiplied by the total amount of square footage used or occupied by Airline to determine the total annual Terminal Building space rent payable by each Airline. (c) 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. (d) Terminal Building rents are payable monthly in accordance with Section 1-3-8.6. ii) Calculation of Apron Area Fee. The Aviation Commission shall calculate Apron Area fee, to be effective upon DBa ofthe new Terminal building and thereafter, in the following manner: (a) The Aviation Commission shall calculate Apron Area Fee for the succeeding Fiscal Year by totaling the following estimated amounts, as set forth in the Annual Budget: Item # 65 Attachment number 1 Page 11 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 11 1. The total Operation and Maintenance Expenses allocated to the Apron Area; 2. An amount equal to 1.25 times the pro rata portion ofthe 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; 3. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Apron Area; 4. Any other Airport Expense allocable to the Apron Area not included in Paragraphs (1) through (3) above; and 5. An amount equal to any deficit or credit estimated for operation ofthe 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. (b) The sum of the expenses identified in (1) to (5) 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 Parking Positions at the Terminal Building. An Airline's Preferential Apron Area Fee shall then be calculated by multiplying the total number of Aircraft Parking Positions assigned to and used by Airline times the Apron Area Rental Rate per Aircraft Gate. Item # 65 (c) The Preferential Apron Area Fee is payable monthly in accordance with Section 1-3-8.6. iii) 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: (a) The Aviation Commission shall calculate the Loading Bridge Use Fee for the succeeding Fiscal Year by totaling the following estimated amounts as set forth in the Annual Budget: 1. The total Operation and Maintenance Expenses allocated to the Loading Bridges; 2. An amount equal to 1.25 times the pro rata portion of the Annual Debt Service Requirement net ofPFC proceeds, if any, authorized to pay debt service allocable to the Loading Attachment number 1 Page 12 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 12 Bridges, or such other amount as may be required by the Bond Resolution; 3. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Loading Bridge; 4. Any other Airport Expense allocable to the Loading Bridge not included in Paragraphs (1) through (3) above; and 5. An amount equal to any deficit or credit estimated for operation ofthe Loading Bridge during the then-current Fiscal Year or any adjustment carried over from preceding Fiscal Years to reflect any difference between actual versus estimated expenses. (b) The Loading Bridge Use Fee rate per Loading Bridge shall be calculated by dividing the Loading Bridge Use Fee calculated in accordance with paragraph (1) to (5) 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. (c) The Loading Bridge Use Fee is payable monthly in accordance with Section 1-3-8.6. iv) Calculation of Landing Fee Rate. (a) Each Fiscal Year, the Aviation Commission shall recalculate 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: 1. The total of the direct and indirect estimated Operation and Maintenance Expenses of the Airfield Area; 2. An amount equal to the Airfield Area Annual Debt Service (plus Coverage), to pay debt service allocable to the Airfield Area, or such other amount as may be required by the Bond Resolution; 5. The amount of deposits to any funds and accounts required by the Bond Resolution and allocable to the Airfield Area; 3. Any other Airport Expense allocable to the Airfield Area not included in Paragraphs (1) through (3) above; and Item # 65 Item # 65 Attachment number 1 Page 13 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 13 4. Any overpayment or underpayment estimated for operation of the Airfield Area 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 5. Any other Airfield Area Expense not included in Paragraphs (1) to (5) above. (b) The Airfield Area Requirement for the succeeding Fiscal Year shall be calculated by subtracting from total Airport Expense [the total of (1) to (5) above] a Competitive Credit in an amount determined appropriate by the Aviation Commission each Fiscal Year. The purpose ofthe Competitive Credit is to keep the Airline's Airport cost per enplane passenger competitive with other airports similarly situated - for air service development purposes. The Aviation Commission may establish differing levels of Competitive Credit for different classes of airlines. (c) The Landing Fee Rate for the succeeding Fiscal Year shall be calculated by dividing the net Airfield Area Requirement computed above by the estimated Total Landed Weight of all Aircraft Arrivals at the Airport for the succeeding Fiscal Year as estimated by the Aviation Commission. (d) 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. (e) The Landing Fee is payable monthly in accordance with Section 1-3-8.6. SEC. 1-3-8.8 EXTRAORDINARY ADJUSTMENTS OF RENTS AND FEES a) Notwithstanding any other provisions hereof, if, at any time, Airport Revenue (and the reserves designated for such purposes) is not sufficient to pay, when due, all items included in the Airport's Annual Budget, or to pay any other Airport Expense incidental or necessary to, or arising out of, the operation of the Airport, including, without limitation, emergency repairs or expenses that relate to the Airport or any aspect thereof, or to compensate for the loss of revenue by reason of any labor dispute, the Aviation Commission may, with notice to and in consultation with the Airlines, increase the airline rents and fees to such amount as is sufficient to assure the Aviation Commission that all such items, expenses, and costs shall be paid in full, solely from the revenues of the Airport. Item # 65 Attachment number 1 Page 14 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 14 b) If total rents and fees of all Airlines, using the Airport, for any calendar quarter vary more than ten percent (10%) from the projected total rents and fees for such quarter (adjusted for seasonality), the rents and fees rates may, if deemed necessary by the Aviation Commission, with notice to and in consultation with the Airlines, be adjusted for the balance of such Fiscal Year by an amount equal to the difference between projected and actual total airline rents and fees. SEe. 1-3-8.9 SECURITY DEPOSIT. a) 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 ofthat date times the actual Landing Fee Rate effective as ofthat date); (b) Airline's estimated Exclusive Use Space, Preferential Use Space, and Joint Use Space rentals for two (2) months (as determined on the basis of Airline's actual space use and occupancy as of the effective date ofthis division. The security deposit may be adjusted by the Aviation Commission as Airline's flight activity and space rental commitment increases or decreases. b) Such deposit shall be in the form 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 two (2) months following termination of Airline's use of the space or operations or activities in regard to the Airport. c) If payments required to be made by Airline under the terms of this division 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. SEC. 1-3-8.10 INSURANCE. a) 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. b) 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. Item # 65 Attachment number 1 Page 15 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 15 c) All liability insurance policies shall provide coverage that includes, or has the same substantive effect as, the following wording: d) "Augusta-Richmond County and each of its officers, agents, elected representatives, volunteers, and employees, in their respective capacities as such, shall be additional insured's hereunder with respect to the products, premises, and operations ofthe named insured." e) "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." f) "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 (10) days notice shall be required in the event of cancellation due to non- payment of premium." g) At least ten (10) calendar days 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 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 from the insurer, Airline shall deliver to the Airport Director, evidence showing reinstatement or other provision for the required insurance. h) 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. i) 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 form 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. Item # 65 Attachment number 1 Page 16 of 19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 16 j) 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. k) Liquor liability insurance for Airline serving alcoholic beverages shall be maintained in an amount not less than Ten Million Dollars ($10,000,000.00) per occurrence. 1) Hangarkeepers liability insurance or other appropriate insurance 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. m) Employer's liability insurance shall be maintained in an amount not less than One Million Dollars ($1,000,000.00) per occurrence. n) 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. 0) EnvironmentallPollution 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 EnvironmentallPollution Liability insurance, 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. p) 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 ofthe Airport Director, with concurrence of the County Risk Manager. q) 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 . Attachment number 1 Page 170f19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 17 immediately terminate Airline's use ofthe 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. r) 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 connected 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. s) 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 connected with, operation ofthe 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. t) 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. SEe. 1-3-8.11 INDEMNIFICATION. (a) 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. (b) By continuing to use and occupy Airport facilities following notice ofthis division, Airline is deemed to have agreed to protect, defend, and hold the County Item # 65 Item # 65 Attachment number 1 Page 180f19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 18 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. SEe. 1-3-8.12 COMPLIANCE WITH LAW - RULES AND REGULATIONS. a) Compliance with Law. b) 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 thereofthat may have jurisdiction to pass regulations with respect to the use and occupancy of Airport facilities. (Ord. No. 6407, ~ 1, 7-3-01; Ord. No. 6737, ~~ 1--12, 11-3-05). c) Rules and Regulations. d) 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. e) 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. SEe. 1-3-8.13 WAIVER OF DAMAGE. a) Each Airline hereby expressly waives and releases any cause of action or right of recovery for compensation for any and all loss or damage sustained by reason of any fire, defect, deficiency or impairments of any of the services in or to the Premises or the Airport, including, but not limited to, electrical power, gas, telephone service, steam, heating, air conditioning, water supply, drainage or sewage systems, or from wires leading to or inside of any space or structure, or by reason of any loss resulting from the failure of any such system or facility unless such loss or damage is due to the negligence or willful misconduct of Augusta or its officers, agents or employees. . .. .. Attachment number 1 Page 190f19 Updated Airline Rents and Fees Ordinance Augusta Regional Airport Page 19 (Ord. No. 6407, S 1, 7-3-01) SEC. 1-3-8.14 ACKNOWLEDGMENT. By continuing to serve the Airport and paying the appropriate rents and fees each Airline acknowledges that it understands and will comply with the terms and conditions contained in this Ordinance. (Ord. No. 6407, S 1, 7-3-01) Item # 65