HomeMy WebLinkAboutORD 7031 AMEND CITY CODE AIRLINE RENTS FEES OTHER CHARGES
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Attachment number 2
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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Ordinance No. 6407 enacted July 3, 2001 are hereby repealed in their entirety and are amended and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 All ordinances or parts of ordinances in conflict herewith are hereby repealed.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
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Item # 65
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Attachment number 2
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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, 2008 and that such Ordinance have not been modified or rescinded as of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
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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
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Updated Airline Rents and Fees Ordinance
Augusta Regional Airport
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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.
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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.
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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,
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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.
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(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
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(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.
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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.
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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:
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(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:
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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
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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
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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.
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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.
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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.
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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
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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
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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.
.
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(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)
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