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HomeMy WebLinkAboutORD 7053 AMEND CITY CODE RENTAL CAR BUSINESS AUGUSTA REGIONAL AIRPORT ORDINANCE NO. 7053 AN ORDINANCE TO AMEND THE AUGUSTA-RICHMOND COUNTY CODE ; B Y ENACTING NEW SECTIONS ~ 1-3-8.15 THROUGH ~ 1-3-8.28; SO AS TO PROVIDE FOR A CONCESSION AND CHARGE FOR THE CONDUCTING OF A RENTAL CAR BUSINESS FROM A LOCATION OUTSIDE THE PREMISES OF AUGUSTA REGIONAL AIRPORT AT BUSH FIELD; TO PROVIDE FOR LEVY AND COLLECTION OF SAID FEES; TO PROVIDE PENALTIES FOR UNTIMELY PAYMENT OF SAID 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. The Augusta Richmond-County Code is hereby amended by the addition of a new Division 3 relating to the Augusta Regional Airport at Bush Field which shall be known as Augusta Richmond County Code Section ~ 1-3-8.15 through ~ 1-3-8.28, as set forth in "Exhibit A" hereto. 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 All ordinances or parts of ordinances in conflict herewith are hereby repealed.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 1LJ day of m~ ' 2008. Second Reading Waived Ul~. /L David s(Copenhaver As its Mayor ./ Seal: ". . :<r1!", ^ ..~ & ';j .,~ '~~ .' .., i;~ f. .'. :.. "_' ~ .t~"Cl~r.ltof~C5niniission .f: q t'~T. ...t'\ e< 'h v~ E.";'-: .}l:~'" ,d ii{~ @l!""o~.:)C~~(..4:<('- ,: ~~,. G€ORG1~ _.....- it\l",,'-....,~~ ~ 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was duly adopted by the Augusta-Richmond County Commission on , 2008 and that such Ordinance have not been modified or rescinded as of the date hereof and the undersigned further certifies that attached hereto as Exhibit "A" is a true copy of the Ordinance which was approved and adopted in the foregoing meeting(s). Lena J. Bonner, Clerk of Commission Published in the Augusta Chronicle Date: Rental Car Business Ordinance EXHIBIT A AUGUSTA REGIONAL AIRPORT RENTAL CAR BUSINESS ORDINANCE March 2008 1 Rental Car Business Ordinance RENTAL CAR BUSINESS ORDINANCE Table of Contents RENTAL CAR BUSINESS ORDINANCE 3 Section 1-3-8.15 -Policy 3 Section 1-3-8.16 -Defmitions 3 Section 1-3-8.17 -Non-Concessionaire Rental Car Business Permit 7 Section 1-3-8.18 -Operational Procedures 7 Section 1-3-8.19 -Percentage Fee 7 Section 1-3-8.20 - Customer Facility Charge 8 Section 1-3-8.21 -Conditions of Permit 10 Section 1-3-8.22 -Suspension of Permit 10 Section 1-3-8.23 -Revocation of Permit 11 Section 1-3-8.24 -Failure to Pay Percentage Fees 11 Section 1-3-8.25 -Records to Be Maintained by Permittee 11 Section 1-3-8.26 -Failure to Submit Statement of Gross Revenue 12 Section 1-3-8.27 -Term of Permit 12 Section 1-3-8.28 -Permit Non-Transferable 13 2 Rental Car Business Ordinance RENTAL CAR BUSINESS ORDINANCE Section 1-3-8.15 (a) Augusta, Georgia, sometimes known as Augusta-Richmond County (hereinafter referred to as the County), is the owner of Augusta Regional Airport and operates it through the Augusta Aviation Commission (hereinafter referred to as the Aviation Commission). The County hereby adopts the following fiscal policy for the establishment of percentage fees to be paid by all non-concessionaire rental car businesses operating at Augusta Regional Airport (hereinafter referred to as the Airport) without concessionaire tenant agreements with the Aviation Commission (hereinafter referred to as "Non- Concessionaire Rental Car Providers", as further defmed below) (b) The cost of operating, maintaining, and developing the Airport is paid solely through Airport revenues and such government grants as may be received by the Aviation Commission and lawfully used for Airport 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 ofthe County. (c) The Aviation Commission shall fix, establish, maintain, and collect such rates, fees, rentals, and other charges for the use of the Airport and its services and shall revise the same from time to time whenever necessary, so as to always provide net revenues sufficient to pay for operating, maintaining and developing the Airport. (d) In furtherance of this policy and in accordance with the authority conferred upon the County by the laws of the State of Georgia, the County, acting through the Aviation Commission, shall assess, and periodically adjust as required, a Customer Facility Charge (as hereinafter defined and a percentage fees on the Gross Revenue of Non- Concessionaire Rental Car Providers operating at the Airport. Section 1-3-8.16-Defmitions (a) The following terms in this section shall have the following meanings in this Ordinance unless expressly stated otherwise. (b) "Airport" shall mean the lands and facilities owned by the County and operated by the Aviation Commission known collectively as Augusta Regional Airport, as it now exists and as it may change from time to time. (c) "Airport Customer" shall mean anyone who is provided transportation to or from the Airport as part of a rental car transaction in a rental car courtesy vehicle of a Non- 3 Rental Car Business Ordinance Concessionaire Rental Car Provider and who either (1) executes an agreement to rent a motor vehicle from a Non-Concessionaire Rental Car Provider or had executed an agreement to rent a motor vehicle and completed the rental transaction with a Non- Concessionaire Rental Car Provider, or (2) takes delivery of a motor vehicle rented from a Non-Concessionaire Rental Car Provider or returned a motor vehicle rented from a Non-Concessionaire Rental Car Provider. (d) "Airport Director" shall mean the person designated by the Aviation Commission to exercise functions in relation to the Airport with respect to the rights and obligations of the Aviation Commission. The term also includes any person expressly designated to exercise functions with respect to the rights and obligations of the Airport Director under this Ordinance, or such other persons, divisions, departments, bureaus, or agencies as may from time to time exercise functions equivalent or similar to those exercised by the Airport Director. (e) "Contract Day" shall mean each twenty-four-hour period, and each fraction thereof, during which a motor vehicle having been delivered by Non-Concessionaire Rental Car Provider to each customer picked up at the Airport which is rented by such Airport customer from the Non-Concessionaire Rental Car Provider. Each fractional period less than a twenty-four-hour period shall be deemed a contract day. (f) "Gross Revenue" of a Non-Concessionaire Rental Car Provider shall mean: 1. All amounts received by the Non-Concessionaire Rental Car Provider, or which the Non-Concessionaire Rental Car Provider is entitled to receive, from (a) any rental of a motor vehicle to any person picked up by the Non-Concessionaire Rental Car Provider, or its agent, from any point on the Airport, including but not limited to (i) the Airport terminal building, (ii) any premises leased by the Aviation Commission to a third party doing business on the Airport, or (iii) any other location within the Airport, or from (b) any rental of a motor vehicle to any person returned by the Non-Concessionaire Rental Car Provider, or its agent, to any point on the Airport, including but not limited to (i) the Airport terminal building, (ii) any premises leased by the Aviation Commission to a third party doing business on the Airport, or (iii) any other location on the Airport or within one (1.0) mile of the Airport. 2. All revenue received by the Non-Concessionaire Rental Car Provider from every Airport Customer who, at the business location of the Non-Concessionaire Rental Car Provider, either (a) executes an agreement for the rental of a motor vehicle from the Non-Concessionaire Rental Car Provider, or (b) takes delivery of a motor vehicle rented from the Non-Concessionaire Rental Car Provider. Gross Revenue shall be deemed received at the time that the sales, lease, or service transaction occurs, giving rise to the Non-Concessionaire Rental Car Provider's right to collect said monies, regardless of whether the transaction was conducted in person, by telephone, or by mail; whether the transaction was for cash or credit; and, if for credit, regardless of whether the Non-Concessionaire Rental Car Provider ultimately 4 Rental Car Business Ordinance collects the monies owed for said transaction from the Airport Customer. 3. Any Gross Revenue owed the Aviation Commission and determined by the Non- Concessionaire Rental Car Provider at a later date to be uncollectible shall not offset future percentage fees owed the Aviation Commission. If the initial rental car agreement entered into between the Non-Concessionaire Rental Car Provider and the Airport Customer is subsequently amended because the Airport Customer's actual usage of the rental car vehicle differs from the usage contemplated in the original agreement, and the charges to be paid by the Airport Customer to the Non- Concessionaire Rental Car Provider are therefore different from the charges contemplated in the original agreement, the percentage of Gross Revenue to which the Aviation Commission is entitled hereunder shall be based upon the Gross Revenue that the Non-Concessionaire Rental Car Provider is entitled to receive under the rental car agreement with its Airport Customer, as amended. 4. Gross Revenue shall not include: a. Federal, State, or municipal sales taxes separately stated and collected from the Airport Customer. b. Amounts that the Non-Concessionaire Rental Car Provider receives, or is entitled to receive, for the sale, disposition, loss, conversion, or abandonment of Non-Concessionaire Rental Car Provider's used motor vehicles and other equipment, personal property, and trade fixtures. c. Amounts that the Non-Concessionaire Rental Car Provider receives, or is entitled to receive, for the repair of damages to its motor vehicles. (g) Gross Revenue shall not be reduced by reason of any commission or similar amount paid by the Non-Concessionaire Rental Car Provider to travel agents or others. (h) "Non-Concessionaire Rental Car Provider" or "Operator" or "Permittee" shall mean all persons, firms, agencies, or companies providing rental car services from locations based outside of the Airport that are not signatory to a concession lease with the Aviation Commission providing terminal building counter locations and rental car ready lot vehicular parking. (i) "Rental Car Courtesy Vehicle" shall mean a courtesy vehicle of the N on- Concessionaire Rental Car Provider if it is operated by, or under agreement with, the Non-Concessionaire Rental Car Provider. A courtesy vehicle shall be deemed operated under agreement with the Non-Concessionaire Rental Car Provider if the Airport Director finds that such courtesy vehicle is operated pursuant to any agreement or arrangement between the Operator of such courtesy vehicle and the Non-Concessionaire Rental Car Provider. G) "Rental Car Customer Facility Charge" shall mean a charge imposed on a transactional basis and shall be a fixed uniform amount applied each day, or fraction thereof, 5 Rental Car Business Ordinance to each subject contract and shall be added to the amounts collected by Non- Concessionaire Rental Car Provider from the renter of the vehicle. Section 1-3-8.17-Non-Concessionaire Rental Car Business Permit (a) Each Non-Concessionaire Rental Car Provider seeking to operate at the Airport shall execute a written agreement with the Commission in the form of a Non-Concessionaire Rental Car Business Permit (Permit) before engaging in any business activities on the Airport. The Permit must be renewed annually, as described below. Application for such Permit shall be made to the office of the Airport Director. (b) The Permit shall be substantially in the form appended to this ordinance adopting this Ordinance, the terms of which are incorporated in and made a part of this Ordinance by reference. The Airport Director may modify the form of the Permit in any manner not inconsistent with the provisions of this section. In the event of conflict between any provisions of this section and any provision of the Permit, this section shall be controlling. ( c) Operation of any Rental Car Courtesy Vehicle on the Airport shall be allowed only with a color-coded decal as required by this County Ordinance. Providers of Rental Car Courtesy Vehicles shall observe all rules and Ordinances of this section in addition to those established by other provisions of the Administrative Code of the County. (d) Non-concessionaire Rental Car Courtesy Vehicle decals shall be provided by the Airport Director initially to the Non-Concessionaire Rental Car Provider upon execution of the Permit and successful completion of a vehicle safety inspection. Decals shall be issued for each Rental Car Courtesy Vehicle operated by the Non- Concessionaire Rental Car Provider. No decals shall be issued without the Operator having valid courtesy vehicle licenses as may be required by the Aviation Commission. (f) Decals shall be permanently affixed to the lower right hand comer of the front windshield of the Rental Car Courtesy Vehicle and shall be clearly visible at all times. Decals shall expire at the time of expiration of the Permit. Only those vehicles displaying valid decals will be authorized to pick up passengers at the Airport. (g) In the case of loss of a decal or damage beyond recognition, a duplicate decal may be obtained after payment by the Operator of Twenty Five Dollars ($25.00) and after submission of a statement setting forth the circumstances of the loss or damage of the decal. (h) Application forms for annual renewal of Rental Car Courtesy Vehicle Airport Permit decals must be submitted to the Airport Director at least ten (10) working days prior to the expiration of the current decal. Renewal applications shall be reviewed and renewal of the decal shall be contingent upon satisfactory payment of the percentage fees and completion of the annual Rental Car Courtesy Vehicle inspection. (i) All Rental Car Courtesy Vehicles are subject to inspection by a representative of the 6 Rental Car Business Ordinance Airport Director to determine if they are in an adequate state of repair. G) The Airport Director or his representative, a police officer, or an Airport safety officer may inspect a Rental Car Courtesy Vehicle at any time while it is on the Airport. A vehicle found to be in an inadequate state of repair will be required to immediately leave the Airport and will not be permitted further access to the Airport until the noted deficiencies are corrected. (k) The Aviation Commission may suspend and/or revoke any Non-Concessionaire Rental Car Business Permit, including the non-concessionaire Rental Car Courtesy Vehicle decal. Such power of suspension and/or revocation may be exercised only upon the failure of the Non-Concessionaire Rental Car Provider to satisfy the conditions of this section or the Permit or for noncompliance with the Aviation Commission code regarding the operation of Rental Car Courtesy Vehicles. Section 1-3-8.18 - Operational Procedures All Rental Car Courtesy Vehicles shall operate on the Airport in compliance with the Airport's operational procedures and all applicable federal, State and local laws. Section 1-3-8.19 - Percentage Fee (a) Each Non-Concessionaire Rental Car Provider offering rental car services from locations based outside the Airport shall pay to the Aviation Commission ten percent (10%) of all Gross Revenue derived by said Non-Concessionaire Rental Car Provider from the rental of motor vehicles to Airport Customers picked up by said Non- Concessionaire Rental Car Provider from any point within the Airport or returned by said Non-Concessionaire Rental Car Provider to any point within the Airport. (b) Each Non-Concessionaire Rental Car Provider shall submit to the office of the Airport Director, on or before the twentieth (20th) day of each month, a statement that sets forth: 1. The total gross revenue earned during the prior month; and 2. Information demonstrating to the satisfaction of the Airport Director which of the Non-Concessionaire Rental Car Provider's gross revenue during the prior month originated from Airport Customers and which gross revenue originated from non- Airport Customers. (c) It shall be presumed that ninety-five percent (95%) of all gross revenue earned by the Non-Concessionaire Rental Car Provider during the month for which the statement is submitted constituted Airport Customer-generated Gross Revenue, unless, and to the extent that, the Non-Concessionaire Rental Car Provider is able to demonstrate otherwise in its statement to the satisfaction of the Airport Director. 7 Rental Car Business Ordinance (d) The statement of gross revenue shall be submitted together with the Non- Concessionaire Rental Car Provider's remittance in payment of the non-concessionaire rental car percentage fee incurred during the prior month. Each Non-Concessionaire Rental Car Provider shall submit a timely statement of gross revenue each month even if such Non-Concessionaire Rental Car Provider earned no Airport-generated Gross Revenue during the prior month (and therefore incurred no non-concessionaire rental car percentage fee during such prior month). In such case, the statement of gross revenue shall state the Non-Concessionaire Rental Car Provider's total gross revenue during the prior month and shall demonstrate to the satisfaction of the Airport Director that none of such revenue constituted Airport generated Gross Revenue. Section 1-3-8.20 - Customer Facility Charge (a) The Aviation Commission will determine the amount adequate to cover the capital, financing, maintenance and operations allocable to the cost of providing infrastructure and facilities to the rental car industry. In addition, the cost of collection, processing, enforcement of payment of the Customer Facility Charge, administration of the Customer Facility Charge and audits of Non-Concessionaire Rental Car Providers compliance with this Ordinance will be included in Customer Facility Charge. These amount shall be the basis for calculating the Rental Car Customer Facility Charge. (b) The Customer Facility Charge shall be collected by Non-Concessionaire Rental Car Provider, as agent for the Aviation Commission, from customers and remitted to the Aviation Commission, as provided for below. (c) The Rental Car Customer Facility Charge shall be imposed on a transactional basis and shall be a fixed uniform amount applied each day, or fraction thereof, to each subject contract and shall be added to the amounts collected by Non-Concessionaire Rental Car Provider from the renter of the vehicle. The Rental Car Customer Facility Charge collected by Non-Concessionaire Rental Car Provider shall be the amount established by the Aviation Commission for all on-airport rental car operators at the Airport. It shall be collected from all customers of Non-Concessionaire Rental Car Provider, including customers receiving complimentary or discounted car rental under Non- Concessionaire Rental Car Provider's bona fide marketing plans. (d) An amount exactly equivalent to the Rental Car Customer Facility Charge collected or should have been collected by the Non-Concessionaire Rental Car Provider from customers shall be payable to the Aviation Commission. Such amount shall be immediately due to the Aviation Commission on collection by the Non-Concessionaire Rental Car Provider who shall be required to hold such amount in trust for the Aviation Commission's benefit. From the moment of collection, Customer Facility Charge proceeds shall be the Aviation Commission's property and Non-Concessionaire Rental Car Provider shall hold only a possessory interest, not an equitable interest, in these funds held in trust. The amount equivalent to that collected or which should have been collected shall be remitted by Non-Concessionaire Rental Car Provider to Aviation 8 Rental Car Business Ordinance Commission no later than the last day of each month. (e) Non-Concessionaire Rental Car Providers shall maintain records and controls which are sufficient to demonstrate the correctness of the Rental Car Customer Facility Charge revenue collected by Non-Concessionaire Rental Car Provider and the amount of Rental Car Customer Facility Charge paid to the Aviation Commission. The records shall be subject to the same audit and review requirements as all other remittances as outlined in Section 11 of this Ordinance. (f) The current Rental Car Customer Facility Charge is $3.50 per Contract Day. As used in this Ordinance, "Contract Day" means each twenty-four (24) hour period, and each fraction thereof, during which a motor vehicle having been delivered by Non- Concessionaire Rental Car Provider to each customer at the Airport is rented by such customer from the Non-Concessionaire Rental Car Provider. Each fractional period less than a twenty-four (24) hour period shall be deemed a Contract Day. The Aviation Commission may adjust the Rental Car Customer Facility Charge annually, based on estimates of Contract Days for the upcoming year. Approximately 60 days prior to the end of the Aviation Commission's fiscal year (December 31, annually), the Aviation Commission shall calculate the revised Rental Car Customer Facility Charge and notify each Non-Concessionaire Rental Car Provider of the new Rental Car Customer Facility Charge. Any credits or shortfalls from the prior fiscal year, as determined by the Aviation Commission, shall carry forward to the next fiscal year. Non-Concessionaire Rental Car Provider shall provide its estimate of rental days for the upcoming fiscal year no later than October 1, annually. (g) After receiving the estimate for the adjusted Rental Car Customer Facility Charge, Non- Concessionaire Rental Car Providers may request a meeting to discuss the estimated Rental Car Customer Facility Charge. The request for such a meeting shall be made within twenty (20) days after the forwarding of the estimated rate for the upcoming fiscal year. (h) The adjusted Rental Car Customer Facility Charge shall become effective on January 1 of each year. (i) The number of transactions completed by Non-Concessionaire Rental Car Provider shall be reported to the Aviation Commission each month. The report, signed by an authorized agent of the Non-Concessionaire Rental Car Provider, is to be received no later than the last day of the month following such transactions and shall be remitted with the payment of the Rental Car Customer Facility Charge. G) The Aviation Commission and Non-Concessionaire Rental Car Provider acknowledge that it is anticipated that the individual members of the traveling public renting Non- Concessionaire Rental Car Provider's cars and directly benefiting from Airport infrastructure and facilities are to pay the Rental Car Customer Facility Charge on each transaction and that such renters are also subject to any sales tax imposed by the State for the lease or license of real property arising from the use of the facility. It shall be 9 Rental Car Business Ordinance the responsibility of the Non-Concessionaire Rental Car Provider to separately state any such tax liability on its rental contracts, to collect such tax and to remit it to the State. Section 1-3-8.21 - Conditions of Permit The Aviation Commission shall not issue a Non-Concessionaire Rental Car Business Permit, and if the Aviation Commission has issued such a Permit, may suspend and/or revoke that Permit, unless the subject Non-Concessionaire Rental Car Provider continuously complies with the provisions of this Ordinance and the Permit. Section 1-3-8.22 - Suspension of Permit (a) The Airport Director may suspend any Non-Concessionaire Rental Car Business Permit upon the failure of the permitted Non-Concessionaire Rental Car Provider to continuously comply with any provision of this section or of the Permit, provided, however, that such suspension is to be imposed only following fourteen (14) days advance written notice to the Non-Concessionaire Rental Car Provider whose Permit is to be suspended. (b) A Non-Concessionaire Rental Car Provider whose Permit is suspended or subject to suspension may demonstrate to the Airport Director, at any time before or after such suspension has been imposed, that such Permittee is in compliance or has remedied its noncompliance or that it is making a good faith effort to do so. (c) If the Non-Concessionaire Rental Car Provider whose Permit is subject to suspension demonstrates that it has remedied its failure to satisfy the conditions of this section or the Permit, the Airport Director will remove the suspension of such Non-Concessionaire Rental Car Provider's Permit, if such suspension has been imposed, or shall abandon proceedings to suspend the Permit if such suspension has not yet been imposed. (d) If the Non-Concessionaire Rental Car Provider whose Permit is subject to suspension demonstrates that it is making a good faith effort to remedy its failure to comply with this section and/or the Permit (though it has not yet remedied such failure), the Airport Director may, at his discretion, remove the suspension of such Permittee's Non- Concessionaire Rental Car Business Permit, if such suspension has been imposed, or abandon proceedings to suspend the Permit if such suspension has not yet been imposed. (e) Once a Non-Concessionaire Rental Car Business Permit has been properly suspended, it shall remain suspended unless and until Permittee's noncompliance is remedied to the 10 Rental Car Business Ordinance satisfaction of the Airport Director and its suspension is removed, or until the Permit is revoked. (f) A Non-Concessionaire Rental Car Provider whose Permit has been properly suspended by the Airport Director may appeal the decision to the Aviation Commission. Section 1-3-8.23 - Revocation of Permit (a) The Airport Director may revoke any Non-Concessionaire Rental Car Business Permit upon the failure of the Permittee to continuously comply with all provisions of this section and its Permit, provided, however, that: 1. Such Permit has been properly suspended for at least thirty (30) days, and 2. Permittee has been given thirty (30) days' advance written notice, which notice may be issued to the Non-Concessionaire Rental Car Provider holding such Permit only after the Permit has been suspended. (b) Upon revocation of its Non-Concessionaire Rental Car Business Permit, the Non- Concessionaire Rental Car Provider must immediately remove any rental car decals issued in connection with the revoked Permit from its Rental Car Courtesy Vehides. (c) A Non-Concessionaire Rental Car Business Permit that has been revoked may not be reinstated. However, a Non-Concessionaire Rental Car Provider whose Permit has been revoked may apply for a new Permit after curing all causes of revocation. (d) The Airport Director may revoke, without notice, the Permit of any Non-Concessionaire Rental Car Provider if, at any time while such Permit is suspended, any of such Non- Concessionaire Rental Car Provider's vehicles seek to enter the Airport under the authority of the suspended Permit for the purpose of loading passengers for transport to or unloading passengers after transport from any facility of such Non-Concessionaire Rental Car Provider. Section 1-3-8.24 - Failure to Pay Percentage Fees and Customer Facility Charge Proceeds (a) If any Non-Concessionaire Rental Car Provider fails to submit any percentage fees and Customer Facility Charge Proceeds as required by this Ordinance by the end of the tenth (10th) day following the final day on which such remittance should have been submitted, the Non-Concessionaire Rental Car Provider shall pay interest to the County at the rate of eighteen percent (18%) per year (one-and-one-halfpercent [1.5%] per month) (or, ifless, the maximum rate of interest allowed by law) on such overdue amounts calculated from the date on which such amounts should have been paid. Section 1-3-8.25 - Records to Be Maintained by Permittee 11 Rental Car Business Ordinance (a) During and with respect to the term of any Non-Concessionaire Rental Car Business Permit issued to it, each Non-Concessionaire Rental Car Provider shall maintain such books and records as would normally be examined by an independent certified public accountant in accordance with generally accepted auditing standards in performing an audit or examination of Permittee's revenues and gross revenue in accordance with generally accepted accounting principles and this section. (b) Each Non-Concessionaire Rental Car Provider to whom a Non-Concessionaire Rental Car Business Permit is issued shall make all records available for inspection by the Airport Director and/or his dilly authorized representative(s), during reasonable business hours, for a period of not less than three (3) years following the end of the term of the Permit to which such records relate; provided, however, that no such inspection will be conducted at a time or in a manner that causes undue interference with the business of the Non-Concessionaire Rental Car Provider. (c) The Non-Concessionaire Rental Car Provider may make such records available for inspection at a specified place in Augusta, Georgia, or at its corporate headquarters. In the event that the inspection of such records is made at the Non-Concessionaire Rental Car Provider's corporate headquarters, and said corporate headquarters are located outside the limits of the County, then the Non-Concessionaire Rental Car Provider shall reimburse the County for all reasonable travel expenses associated with travel by the Airport Director and/or his dilly authorized representative(s) to the Non-Concessionaire Rental Car Provider's corporate headquarters for the inspection of such records. Section 1-3-8.26 - Failure to Submit Statement of Gross Revenue and Customer Facility Charge Report (a) If, in any month, any Non-Concessionaire Rental Car Provider fails to submit a timely statement of gross revenue and Customer Facility Charge Report, as required by Section 5 of this Ordinance, at the end of the thirtieth (30th) day following the final day on which such timely statement should have been submitted, the'Aviation Commission may, at its discretion, perform, or hire an agent to perform, an audit of Permittee's various books and records (including, but not limited to, the records that such Permittee is required to maintain under the provisions of this Ordinance) to determine Permittee's gross revenue and Customer Facility Charge requirement during the month that woilld have been the subject of such timely statement of gross revenue and Customer Facility Charge report. The Non-Concessionaire Rental Car Provider shall, within thirty (30) days of receipt of an invoice from the Aviation Commission therefor, reimburse the Aviation Commission for its reasonable cost of performing or of hiring an agent to perform, such audit. Section 1-3-8.27 -Term of Permit (a) The term of such Non-Concessionaire Rental Car Business Permit shall extend from the 12 Rental Car Business Ordinance date it is issued until either midnight on the 31 st day of December next following the date it was issued or the date on which such Permit is revoked, whichever is earlier. The Rental Car Courtesy Vehicle decals issued in connection with a Permit shall expire at the end of the term of such Permit. (b) On the fIrst day of January of each succeeding year, the term of the Non-Concessionaire Rental Car Business Permit shall be extended automatically for successive one (1) year periods, unless said Permit is earlier suspended or revoked. If a suspension is in effect on January 1, the Non-Concessionaire Rental Car Provider shall remedy all failures to comply with the provisions of this Ordinance and shall apply for a new Non- Concessionaire Rental Car Business Permit before any such Permit may be issued. Section 1-3-8.28 - Permit Non-Transferable (a) No Non-Concessionaire Rental Car Business Permit, and no rental car decal issued in connection with such Permit, may be transferred, assigned, loaned, or used in any way by any person or entity other than the Non-Concessionaire Rental Car Provider to whom such Permit was issued or the Operator of a Rental Car Courtesy Vehic1e operated under agreement with such Non-Concessionaire Rental Car Provider. 13 Rental Car Business Ordinance ATTACHMENT EXHIBIT "AI" NON CONCESSIONAIRE RENTAL CAR BUSINESS PERMIT AUGUSTA REGIONAL AIRPORT 14 ATTACHMENT A-l NON-CONCESSIONAIRE RENTAL CAR BUSINESS PERMIT AUGUSTA REGIONAL AIRPORT Augusta Regional Airport Page i March 11, 2008 CONTENTS ARTICLE I -- TERM......... ............. ................ ........ .................... ........... ..... ................. 1 ARTICLE II -- OPERATING PRIVILEGES............................................................. 2 ARTICLE III - PERCENT AGE FEE ......................................................................... 3 ARTICLE IV - CUSTOMER FACILITY CHARGE................................................ 5 V - TIME AND PLACE OF PAYMENTS ............................................................... 8 ARTICLE VI -- BOOKS AND RECORDS ............................................................... 9 ARTICLE VII -- INSURANCE AND INDEMNIFICATION.............................. 10 A. WORKER'S COMPENSATION ....................................................11 B. COMPRHENSlVE GENERAL, AUTOMOBILE AND UMBRELLA LIABILITY COVERAGES ......................................11 C. COMPREHENSIVE GENERAL LIABILITY ...............................11 D. BUSINESS Auto POLICY ..............................................................12 E. UMBRELLA LIABILITY INSURANCE....................................... 12 F. CERTIFICATES OF INSURANCE ...............................................12 G. INSURANCE OF PERMlTEE PRIMARY.................................... 12 H. LOSS CONTROL AND SAFETY ..................................................13 1. HOLD HARMLESS ........................................................................13 J. PAY ON BEHALF OF COMMISSION ........................................13 ARTICLE VIII -- SECURITY DEPOSIT .................................................................13 ARTICLE IX -- TRADE NAME ..............................................................................14 ARTICLE X -- DEFAULT AND REMEDIES ........................................................14 ARTICLE XI -- SUSPENSION OR SUSPENSION AND REVOCATION ........16 ARTICLE XII -- NON-DISCRIMINATION ..........................................................16 ARTICLE XIII -- DAMAGE TO AIRPORT ...........................................................17 ARTICLE XIV - TAXES AND ASSESSMENTS ..................................................17 ARTICLE 'X'I -- WAIVER.. .............. ............................ .................... ........................ 17 ARTICLE XVI - NOTICES ........................................................;............................18 Augusta Regional Airport Page ii March 11, 2008 ARTICLE XVII -- RELATIONSHIP OP PARTIES............................................... 18 ARTICLE XVIII -- PARTIAL INVALIDITY .........................................................18 ARTICLE XIX - SUCCESSORS ..............................................................................19 ARTICLE XX - ASSIGNMENT ..............................................................................19 ARTICLE XXI - ATTORNEY'S FEES ...................................................................19 ARTICLE XXII - NO DIVERSION ........................................................................19 ARTICLE XXIII - HEADINGS .............................................................. .................20 ARTICLE XXIV -- GOVERNING LAW................................................................ 20 ARTICLE XXV -- RULES AND REGULATIONS................................................ 20 Augusta Regional Airport Page iii March 11,2008 NON-CONCESSIONAIRE RENTAL CAR BUSINESS PERMIT WITNESSETH: WHEREAS, Commission is the operator of Augusta Regional Airport (" Airport") located in Augusta, Georgia, and has the right to grant operating privileges on the Airport subject to the terms and conditions hereinafter set forth; and WHEREAS, Permittee is a non-concessionaire rental car business wishing to drive onto the Airport, to pick up and drop off its rental car customers; and WHEREAS, Permittee has submitted an application for a Non-Concessionaire Rental Car Business Permit which is satisfactory to the Commission; NOW, THEREFORE, in consideration of the mutual covenants and considerations herein contained, Commission and Permittee agree as follows: ARTICLE I -- TERM This Permit shall become effective at 12:01 am on and shall continue fr~m the date it is issued until midnight, December 31, . On the first day of January of each succeeding year this Permit shall be extended automatically for successive one-year periods unless earlier terminated or revoked. The foregoing notwithstanding this Permit may be canceled at any time in writing by either party upon thirty (30) days notice, or upon such longer period a may be provided in such notice. Augusta Regional Airport Page 1 March 11, 2008 ARTICLE II -- OPERATING PRIVILEGES A. Permittee is authorized to operate courtesy vehicles on public roadways on Airport property by the most direct authorized route to pick up customers at the main air carrier terminal ("Terminal") or to the Fixed Base Operator site. Permittee is also authorized to use such roadways to deliver customers to the Airport. B. Drivers of vehicles, or company personnel that may accompany them, are expressly prohibited from the solicitation of business in any manner whatsoever upon Airport property. Drivers will remain in the vehicles except to assist customers loading or unloading baggage. C. Permittee agrees that it will not have an office or station at the Terminal area of the Airport, or conduct rental car operations in such terminal area or at the Fixed Base Operator site. Permittee is not authorized to lease, sell, ticket, service, store or park its rental cars from or at the Airport, or from or at any improvements located upon the Airport, regardless of whether said improvements are owned or occupied by the Commission or an Airport tenant. D. Permittee will not solicit business on the Airport other than indirectly by advertising and by providing direct telephones. Permittee may lease, at Permittee's sole cost and expense, advertising space from the Airport's advertising and exhibit display concessionaire. Said advertising may include rental of a "telephone board", which is a back-lit advertising display offering direct telephone access to the individual advertiser. Advertising and telephone fees, charges, and location must be negotiated separately with the Airport's advertising and exhibit display concessionaire, and are in addition to the fees payable to the Commission. E. Permittee will load and unload its customers only in zones designated by the Airport Director for such purposes. Customers say be picked up only in designated and signed vans or other motor vehicles (referred to herein as courtesy shuttle vehicles). Permittee shall not operate more than one courtesy shuttle vehicle within the terminal area of the Airport at the same time. Permittee will not park its courtesy shuttle vehicles on Airport property except for loading and unloading. Permittee will not operate or park rental cars on Airport property. F. Permittee shall operate on the Airport in a safe, clean, and orderly fashion. Permittee will not allow its agents, servants, or employees to engage in open or public disputes or conflicts tending to be incompatible with the best interests of the public at the Airport. The Commission shall have the right to resolve all such disputes or conflicts and its determination thereof concerning the manner in which Permittee shall thereafter operate shall be binding upon Permittee. Augusta Regional Airport Page 2 March 11, 2008 G. Permittee shall not conduct any business activity on Airport property other than as permitted herein or as expressly permitted otherwise by the Commission. ARTICLE III - PERCENTAGE FEE A. In consideration of the privileges granted hereunder Permittee shall pay to the Commission such consideration as is specified by Article IV - Rental Car Business Regulation of the County Code (hereinafter called the II Ordinance"), as the same may be amended from time to time. The presently effective fee to be paid by non-concessionaire rental car businesses at the Airport is ten percent (10%) of gross revenue. B. The term" gross revenue" as used by the Ordinance, as the same may be amended from time to time, shall mean: 1. All amounts received by Permittee, or which Permittee is entitled to receive, from any rental of a motor vehicle to any person picked up by Permittee, or its agent, from any point on the Airport, including but not limited to the Airport Terminal Building, any premises leased by the Commission to a third party doing business on the Airport, or from any other location within the Airport, or from any rental of a motor vehicle to any person returned by Permittee, or its agent, to any point on the Airport, including but not limited to the Airport Terminal Building, any premises leased by the Commission to a third party doing business on the Airport, or to any other location within the Airport. 2. All revenue it receives from every Airport Customer who, at the business location of Permittee, either (1) executes an agreement for the rental of a motor vehicle from Permittee, or (2) takes delivery of a motor vehicle rented from Permittee. Gross revenues to the Permittee shall be deemed received at the time the sales, lease, or service transaction occurs giving rise to Permittee's right to collect said monies, regardless of whether said transaction was conducted in person, by telephone, or by mail, whether the transaction was for cash or credit, and if for credit, regardless of whether Permittee ultimately collects the monies owed for said transaction from the Airport Customer involved. Any gross revenue owed the Commission and determined by Permittee at a later date to be uncollectible shall not offset future percentage rentals owed the Commission. If the' initial rental car agreement entered into between Permittee and the Airport Customer is subsequently amended, because the customer's actual usage of the rental car vehicle differs from the usage contemplated by the original agreement and the charges to be paid by the Airport Customer are therefore different from the charges contemplated by the original agreement, the percentage of gross revenues to which the Commission is entitled as rental hereunder shall be based upon the gross revenue Augusta Regional Airport Page 3 March 11, 2008 which the Permittee is entitled to receive, under the rental car agreement with its Airport Customer, as amended. Gross revenue shall not include: a. federal, state, or municipal sales taxes separately stated and collected from the customers; b. amounts Permittee receives, or is entitled to receive, for refueling motor vehicles owned or leased by it; c. amounts Permittee receives, or is entitled to receive, for charges for insurance coverage, including but not limited to personal accident insurance premiums and collision damage waiver charges; d. amounts Permittee receives, or is entitled to receive, for the sale, disposition, loss, conversion, or abandonment of Permittee's used motor vehicles and other equipment, personal property, and trade fixtures; e. amounts which Permittee receives, or is entitled to receive, for the repair of damages to its motor vehicles; and f. the percentage fee collected by Permittee as referenced in Article III.A of this Non-Concessionaire Rental Car Business Permit. 3. Gross Revenue shall not be reduced by reason of any commission or similar amount paid by Permittee to travel agents or others. C. Permittee shall pay the foregoing amounts for each month this Permit is in effect, in arrears, no later than thirty (30) days following the month in which the gross receipts are recorded (Le., the installment for August shall be due no later than September 30th). Said monthly payment shall be made to the Airport Director's Office. The failure of Permittee to provide the Commission with an accurate statement each month of the gross revenue Permittee has enjoyed during the previous month shall be deemed a material breach of this Permit. In such event the Commission may, at its discretion, perform, or hire an agent to perform, an audit of Permittee's various books and records (including but not limited to the records Permittee is required to maintain under the provisions of the Ordinance) to determine the Permittee's Gross Revenue during the month which would have been the subject of such Statement of Gross Revenue. Permittee shall, within 30 days of receipt from the Commission of an invoice, reimburse the Commission for its reasonable cost of performing or of hiring an agent to perform such audit. Augusta Regional Airport Page 4 March 11, 2008 D. It shall be presumed that ninety-five percent (95%) of all gross revenue earned by Permittee during the month with respect to which the statement is submitted constituted Airport customer generated gross revenue, unless, and to the extent the Permittee demonstrates otherwise in its statement to the satisfaction of the Airport Director. E. In the event Permittee fails to pay fees as required to be paid under the provisions of this Permit within ten (10) days after the earliest date due, interest shall accrue at the rate of one and one-half percent (1.5%) per month from the due date until receipt of payment. Any partial payments received on said indebtedness shall be applied first to accrued interest and then to principal. Implementation of this provision shall not preclude the Commission from terminating this Permit for default in the payment of fees or from enforcing any other provisions contained herein. F. The Commission reserves the right to amend the Ordinance, reasonably revising the consideration to be paid by non-concessionaire rental car businesses for the privilege of driving upon the Airport to pick up and drop off their rental car customers. By its execution of this Permit, Permittee agrees to pay the reasonable consideration required by the revised Ordinance, commencing with the first day of the month following the month in which Permittee receives written notice of the revised fees, should Permittee continue to drive onto the Airport to pick up and drop off its customers on or after the first day of the month following the month of its receipt of said notice. ARTICLE IV - CUSTOMER FACILITY CHARGE A. A Customer Facility Charge of $3.50 per Contract Day on all Permittee's transactions shall be collected by Permittee, as agent for the Commission, from customers and remitted to the Commission as provided for below. As used in this Permit, "Contract Day" means each twenty-four (24) hour period, and each fraction thereof, that a motor vehicle having been delivered by the Permittee to each Airport customer is rented by such Airport customer from the Permittee. Each fractional period less than a twenty-four hour period shall be deemed a Contract Day. The Commission may adjust the Customer Facility Charge annually, based on estimates of Contract Days for the upcoming year and projected costs and expense as discussed below. Augusta Regional Airport Page 5 March 11, 2008 B. The Customer Facility Charge shall be imposed on all transaction days for each rental agreement. The Customer Facility Charge shall be used for the following purposes: (1) To pay financial and physical planning and architecture and engineering design costs associated with the new rental car facilities, as determined by the Commission. (2) To pay project management and construction costs associated with the new rental car facilities, as determined by the Commission. (3) To pay the operating and maintenance expenses of the Commission that are allocable to the rental car operating areas. (4) To pay the cost of collection, processing, enforcement of payment of the Customer Facility Charge, administration of the Customer Facility Charge and audits of Permittee's compliance with this regulation. C. The Permittee shall collect and remit the Customer Facility Charge revenues on behalf of the Commission on the following basis: (1) A Customer Facility Charge shall be imposed on all transaction days for each rental agreement. A Customer Facility Charge of$3.50 for each Contract Day shall be levied on automobile rentals. Each twenty-four (24) hour period or fraction thereof within the rental period shall constitute a separate day for which Permittee shall levy and collect the CFC. (2) The Customer Facility Charge shall be identified on a separate line of each rental car contract or agreement entered into on the Airport or elsewhere with car pick-up at the Airport, and described as "Customer Facility Charge" or "CFC" with a footnote approved by the Commission explaining the abbreviation. Permittee shall hold the Customer Facility Charge revenues collected by the Permittee in trust in a fiduciary capacity for the Commission. All of the Customer Facility Charge revenues collected and held by Permittee shall be the property of the Commission from the moment that collected by the Permittee. (3) The Permittee shall hold said Customer Facility Charge revenue collections in a custodial capacity and shall not hold or have either an ownership or equitable interest in said Customer Facility Charge revenues collected. The Customer Facility Charge imposed by the Permittee shall be the amount established by the Augusta Regional Airport Page 6 March 11, 2008 Commission for all rental car operators at the Airport. The Customer Facility Charge shall be collected from all customers, including customers receiving complementary or discounted car rentals from the Permittee. (4) The Permittee shall maintain records and controls that are sufficient to meet the requirements of this Section 4 to demonstrate the correctness of the Customer Facility Charge revenues collected by the Permittee and the amount of Customer Facility Charge revenue collections remitted. Said accounting records shall be made available for inspection and examination at all reasonable times by the Commission or a duly authorized representative(s). Should travel to the Permittee's out of state offices be required in order to conduct such a review and/or audit, all reasonable costs incurred by the Commission or their duly authorized representatives, including but not limited to airfare, meals, lodging and local transportation shall be paid by the Permittee. (5) Permittee agrees that it will not be entitled to any rights of offset or other reduction in the requirements herein and to remit all Customer Facility Charge revenues collected to the Commission regardless of any amounts that may be owed or due to the Permittee by Commission. (6) Although the Commission does not anticipate any legal challenge to the Customer Facility Charge, the Commission will defend any such challenge. If all or any part of the Customer Facility Charge fails to survive challenge in a court of competent jurisdiction, then the stricken portion of the Customer Facility Charge will be replaced by higher fees, as determined by the Commission by making adjustments to the Permittee's percentage fee. (7) Payment of the Customer Facility Charge revenues collected by Permittee shall be made to the Commission at the address provided in Section 16 and shall be paid in U.S. dollars without exchange for foreign currency. Permittee agrees to promptly remit its Customer Facility Charge revenue collections to the Commission. D. The Permittee's shall furnish to the Commission, on or before the twentieth (20th) day following each complete calendar month during the Term of this Permit, a statement, certified by the Permittee and prepared in a manner satisfactory to the Commission, of the Customer Facility Charge revenues collected, and the number of Automobile Rental Contracts and Contract Days that occurred during the previous calendar month. The Customer Facility Charge revenues collected shall be remitted by the Permittee to the Commission by the 20th day of each month for the preceding calendar month of operations during the entire Term of this Permit. Augusta Regional Airport Page 7 March 11, 2008 v -- TIME AND PLACE OF PAYMENTS A. The Percentage Fee and Customer Facility Charge described in this Permit shall be payable at the times stated above. Payments to the 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, NY 10004 Credit to: Augusta Regional Airport Airport Revenue Fund Account #417-90443-1-0 B. If Permittee elects not to make payments by wire transfer, payments to the Commission shall be made at the Office of the Airport Director as set forth below or such other place as may hereafter be designated by the Commission. Airport Director Augusta Regional Airport 1501 Aviation Way Augusta Regional Airport Page 8 March 11, 2008 Augusta, Georgia 30906 ARTICLE VI -- BOOKS AND RECORDS A. Permittee must maintain full and accurate books of account and records from which gross revenue and the amount of the percentage fee owed the Commission, hereunder, can be determined, according to standard and accepted accounting practices. The books of account and records that Permittee must maintain must include, but need not be limited to, motor vehicle rental contracts, sales slips, cash register tapes, credit card invoices, monthly sales tax returns, sales and disbursement journals, general ledgers, bank statements, bank books, bank deposit slips, annual federal income tax returns, and all Airport-related revenue reports submitted by Permittee to the franchiser. Permittee agrees to operate its business so that an invoice and receipt, serially numbered, shall be issued with each rental transaction, whether for cash or credit. Rental agreements, invoices, cash receipts and all Permittee's books in relation to its operations at Augusta Regional Airport shall be open for inspection by the authorized representatives of the Commission at reasonable times during business hours, upon request. Permittee shall maintain such records for three years after the end of the term of this Permit. B. Permittee, by March 31 of each succeeding year, shall provide at its sole cost and expense an audit by an independent certified public accountant, licensed in the State of Georgia and acceptable to the Commission, of monthly gross revenues for the calendar year just ended. There may be no limitation to the scope of the examination that would hinder the auditor in expressing his opinion as to the correctness and completeness of the reported revenues. The examination shall include a schedule of gross revenues and fees per month of Permittee's operations under this Permit, prepared in accordance with the comprehensive basis of accounting defined under the terms of the Permit and reported in format acceptable to the Commission. The audit shall be conducted in accordance with generally accepted auditing standards arid shall include the issuance of a management letter, which will contain the findings discovered during the course of the audit, such as recommendations to improve accounting procedures, internal controls, increase efficiency of operations and other significant matters. In addition, the examination shall also comprehend compliance procedures to determine whether accounting records and reports are being maintained in accordance with the terms of this Permit for the period of examination. The auditor shall report such procedures and findings in a separate letter to the Commission. Any change in scope from that described above shall be included in the report. Augusta Regional Airport Page 9 March 11, 2008 C. Notwithstanding the annual audit requirements of Article IV., paragraph B., above, the Commission or its representative may at any time perform special audits of all or selected operations performed by Permittee within the scope of this Permit. Permittee shall make all necessary accounting records available to the Commission. A special audit report will be issued by the Commission or its representative and made available to Permittee. The Permittee shall have thirty (30) calendar days to comment in writing on the special audit report. Failure of the Permittee to submit such written comments shall constitute acceptance of the special audit report as issued. If the special audit reveals an underpayment of revenue to the Commission by the Permittee of 2% or greater, or if the special audit reveals that the records of the Permittee are in such a state that the revenue cannot be properly determined, then the cost of the special audit will be reimbursed to the Commission by Permittee. Within thirty (30) days notice of any underpayment Permittee shall pay to Commission the full amount underpaid plus one and one-half percent (1.5%) interest per month on said underpayment from the time said underpayment should have been paid to the time said underpayment is fully paid. In addition, any reimbursement by Permittee for the coat of the special audit shall be paid within thirty (30) days following notification by Commission to Permittee. D. Permittee may make such records available for inspection in Augusta, Georgia or at its corporate headquarters. In the event the inspection of such records is made at Permittee's corporate headquarters, and said corporate headquarters are located of Augusta, Georgia, then Permittee shall reimburse the Commission for all reasonable travel expenses associate with the Commission or its representatives traveling to Permittee's corporate headquarters for the inspection of such records. ARTICLE VII -- INSURANCE AND INDEMNIFICATION At all times during the term of this Permit, Permittee shall procure and maintain insurance types and to the limits specified. The term Commission as used in this Article V of the Permit is defined to mean the Commission itself, any subsidiaries or affiliates, elected and appointed officials, employees, volunteers, representatives and agents. Insurance shall be issued by an insurer whose business reputation, financial stability and claims payment reputation is satisfactory to the Commission, for the protection of the Commission only. All insurance coverages of Permittee whether required or not, shall contain a Waiver of Subrogation clause, waiving subrogation against the Commission. Unless otherwise agreed, or if the entity has a program of self - insurance which meets or exceeds all the requirements contained in the Augusta Regional Airport Page 10 March 11, 2008 ordinance, the amounts form and type of insurance shall conform to the following minimum requirements. A. WORKER'S COMPENSATION Permittee shall purchase and maintain Worker's Compensation Insurance coverage for all Worker's Compensation obligations whether legally required or not. Additionally, the policy, or separately obtained policy, must include Employer's Liability Coverage of at least One Hundred Thousand Dollars ($100,000) each person-accident, One Hundred Thousand Dollars ($100,000) each person-disease and Five Hundred Thousand Dollars ($500,000) aggregate-disease. B. COMPRHENSIVE GENERAL, AUTOMOBILE AND UMBRELLA LIABILITY COVERAGES Permittee shall purchase on forms no more restrictive than the latest editions of the Comprehensive General Liability and Business Auto policies filed by the Insurance Services Office. The Commission shall be an Additional Insured and such coverage shall be at least as broad as that provided to the Named Insured under the policy for the terms and conditions of this Permit. The Commission shall not be considered liable for premium payment, entitled to any premium return or dividend and shall not be considered a member of any mutual or reciprocal company. Minimum limits of One Million Dollars ($1,000,000) per occurrence, and per accident, combined single limit for liability must be provided at all time with umbrella insurance coverage making up any difference between the policy limits of underlying policies coverage and the total amount of coverage required. If the required limits of liability afforded should become impaired by reason of any claim, then Permittee agrees to have such limits of $1,000,000 per occurrence reinstated under the policy. Permittee and the Commission understand and agree that the minimum limits and the type of insurance herein required may become inadequate, and Permittee agrees that it will increase such coverage or limits of liability to the type and limits desired by the Commission within ninety (90) days of receipt of written notice from the Airport Director, or other person designated by the Commission to give such notice. C. COMPREHENSIVE GENERAL LIABILITY Comprehensive General Liability coverage must be provided, including bodily injury and property damage liability for premises, operations, products and completed operations, and independent contractors. Broad Form Comprehensive General Liability coverage, or its equivalent, shall provide at least broad form contractual liability applicable to this Permit, personal injury liability and broad Augusta Regional Airport Page 11 March 11, 2008 form property damage liability. The Coverage shall be written on an occurrence- type basis. D. BUSINESS AUTO POLICY Business Auto Policy coverage must be provided, including bodily injury and property damage arising out of operation, maintenance, or use of owned, non- owned and hired automobiles and employee non-ownership use. E. UMBRELLA LIABILITY INSURANCE Umbrella Liability Insurance coverage shall not be more restrictive than the underlying insurance policy coverages. The coverage shall be written on an occurrence-type basis. F. CERTIFICATES OF INSURANCE Required insurance shall be documented in the certificates of Insurance which provide that the Commission shall be notified at least thirty (30 days in advance of cancellation, non-renewal or adverse change or restriction in coverage. The Commission shall be named in each Certificate as an Additional Insured and this Permit shall be listed. If required by the Commission, Permittee shall furnish copies of Permittee's insurance policies, forms, endorsements, jackets, and items forming a part of, or relating to such policies. Certificates shall be on the II Certificate of Insurance" form equal to, as determined by the Commission, an AORD 25. Any wording in a Certificate which would make notification of cancellation, adverse change, or restriction in coverage to the Commission an option shall be deleted or crossed out by the insurance carrier or the insurance carrier's agent or employee. Permittee shall replace any canceled, adversely changed, restricted, or non-renewed policies with new policies acceptable to the Commission and shall file with the Commission Certificates of Insurance under the new policies prior to the effective date of such cancellation, adverse change, or restriction. If any policy is not timely replaced, in a manner acceptable to the Commission, Permittee shall, upon instructions of the Commission, cease all operations under this Permit until directed by the Commission, in writing, to resume operations. G. INSURANCE OF PERMITEE PRIMARY Permittee required coverage shall be considered primary, and all other insurance shall be considered as excess, over and above Permittee's coverage. Permittee's policy of coverage will be considered primary as it relates to all provisions of the Permit. Augusta Regional Airport Page 12 March 11, 2008 H. LOSS CONTROL AND SAFETY Permittee shall retain control over its employees, agents, servants and subcontractors, as well as control over its invitees, and its activities on and about the premises and the manner in which such activities shall be undertaken and to that end, Permittee shall not be deemed to be an agent of the Commission. Precaution shall be exercised at all times by. Permittee for the protection of all persons, including employees and property. Permittee shall make special effort to detect hazards and shall take prompt action where loss controlj safety measure should reasonably be expected. I. HOLD HARMLESS Permittee shall hold harmless the Commission, its subsidiaries or affiliates, elected and appointed officials, employees, volunteers, representatives and agents from any and all claims, suits, actions, damages, liability and expenses in connection with loss of life, bodily or personal injury, or property damage including loss or use thereof, directly or indirectly caused by, resulting from, arising out of, or occurring in connection with this Permit, provided any such claim, suit, action, damage, liability, or expense is caused in whole or in part by an act or omission of Permittee, or the contractors, subcontractors, representatives, licensees, invitees, agents or employees of Permittee or employees of any of the aforementioned individuals or entities, unless the exclusive cause of any such claim, suit, action, damage, liability, or expense is caused by the sole negligence of the Commission, its officers, employees, or agents. Commission shall give Permittee reasonable notice of any such claims or actions. Permittee's obligation shall not be limited by, or in any way to, any insurance coverage or by any provision in or exclusion or omission from any policy of insurance. J. PAY ON BEHALF OF COMMISSION Permittee agrees to pay on behalf of the Commission, as well as provide a legal defense for the Commission, both of which will be done only if and when requested by the Commission, for all claims as described in the Hold Harmless subparagraph. Such payment on behalf of the Commission shall be in addition to any and all other legal remedies available to the Commission and shall not be considered to be the Commission's exclusive remedy. ARTICLE VIII -- SECURITY DEPOSIT Prior to driving upon the Airport pursuant to this Permit, Permittee must establish a Certificate of Deposit, in the sole name of Commission, in an amount equal to Fifteen Hundred Dollars ($1,500.00) to cover Permittee's performance of all Augusta Regional Airport Page 13 March 11, 2008 Augusta Regional Airport Page 14 of its obligations under this Permit. Permittee shall be entitled to enjoy, and withdraw, all interest that accrues on said Certificate of Deposit. Should Permittee wish to withdraw said interest, Commission shall execute such documents as necessary to enable Permittee to effect the withdrawal. In the event Permittee defaults under this Permit, as defined herein, Commission shall be entitled to withdraw a portion or all of the principal balance of the Certificate of Deposit, pursuant to Article VIII, below. The Commission hereby reserves the right to require Permittee to post a larger certificate of deposit with the Commission from time to time, should Commission determine, in its sole discretion, that a larger certificate of deposit would be necessary to provide Commission with a security deposit equivalent to Permittee's two month average fee hereunder, based upon the fee formula in effect at the time of said increase. By its execution of this Permit, Permittee agrees to post said additional deposit with the Commission within thirty (30) days after receipt of notice of said increase. In no event shall the security deposit required of Permittee be less than $1, 500.00. ARTICLE IX -- TRADE NAME Permittee may operate its business at Augusta Regional Airport by, through and under its nationally known and nationally advertised affiliation or trade name, if any. Once having operated under such affiliation or trade name, then in the event Permittee shall fail to continue to use and operate under said name, whether said failure be because of loss of franchise or otherwise, then same shall be deemed a default hereunder and, at the option of the Commission, this Permit may be terminated as provided for in Article VIII. This Permit or Permittee's rights hereunder shall not be assigned by Permittee without written consent of the Commission. ARTICLE X -- DEFAULT AND REMEDIES A. The following shall constitute defaults by Permittee: 1. The failure to pay percentage fees, or any other monies owed under this Permit or the Ordinance when due, and the failure to cure said default within a period of thirty (30) days following written notice of said default; 2. Any other failure by Permittee to perform any covenant or obligation required by this Permit, the Ordinance, or any other agreement between the Commission and Permittee, and the failure to cure said default within a period of thirty (30) days following written notice of said default; March 11, 2008 3. The acquisition of Permittee's interest in this Permit by execution or other process of law when said process of law is not discharged within fifteen (15) days thereafter; or 4. The adjudication of Permittee as bankrupt; Permittee's general assignment for the benefit of creditors; the utilization of the benefits of any insolvency act; or the appoinbnent of a permanent receiver or trustee in bankruptcy for Permittee's property if the appoinbnent is not vacated within ninety (90) days. B. If Permittee defaults, the Commission may utilize anyone or more of the following remedies against Permittee. These remedies shall be considered cumulative and not in the alternative: 1. The Commission may sue f or specific performance; 2. The Commission may sue for all damages incurred by Commission including incidental damages, consequential damages and attorney's fees; 3. The Commission may utilize a portion of or all of the certificate of deposit proceeds provided by Permittee to remedy the default and to reimburse the Commission for any damages, including attorney's fees and other expenses of collection, that it may sustain. In such event, Permittee shall not be permitted to drive upon the Airport under this Permit until such time as it furnishes another certificate of deposit that satisfies the requirements of Article VI. However, this Permit shall not be deemed terminated or revoked during said period, unless written notice of termination or revocation shall have been given and become effective in accordance with subparagraph VIII.BA, below. Permittee shall be required to fulfill all of the terms and conditions of this Permit during the time it takes to procure the certificate of deposit. 4. The Commission may terminate or revoke this Permit, and, at the option of the Commission, any other agreement in effect between the Commission and Permittee. The termination or revocation of these agreements, however, Shall only be effective upon written notice of same provided by the Commission to Permittee. In no event shall this Permit be construed to be terminated or revoked unless and until such notice is provided. This Permit may not be terminated or revoked unless, at the time or revocation, it has been properly suspended for at least 30 days and, this Permit may not be terminated or revoked except following 30 days written notice, which notice may be issued to Permittee holding such Permit only after the suspension of the Permit has been imposed. If this Permit is terminated, Permittee shall continue to be liable for the performance of all terms and conditions and the payment of all fees due hereunder prior to the effective date of said termination, in addition to all damages, including attorney's fees and other expenses of collection, incurred by Commission as a result of any default. Augusta Regional Airport Page 15 March 11, 2008 5. The Commission may utilize any other remedy provided by law or equity as a result of Permittee's default(s). ARTICLE XI -- SUSPENSION OR SUSPENSION AND REVOCATION The Commission's Airport Director may suspend, or suspend and revoke, this Permit pursuant to Sec. 12-2-86 of the Ordinance, as it may be amended from time to time. ARTICLE XII -- NON-DISCRIMINATION Permittee shall furnish its accommodations and/ or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable, and nondiscriminatory prices for each unit or service, PROVIDED THAT Permittee may be allowed to make reasonable and non-discriminatory discounts, rebates, or other similar type of price reductions to volume purchasers. Permittee shall make its accommodations and/ or services available to the public on fair and reasonable terms without discrimination on the basis of race, creed, color, sex, age, national origin, or disability. Non-compliance with the above paragraphs, after written findings, shall constitute a material breach thereof and in the event of such non-compliance, the Commission shall have the right to terminate this Permit and the estate hereby created without liability therefore, or at the election of the Commission or the United States, either or both said governments shall have the right to judicially enforce the above paragraphs. Permittee assures that it will undertake an affirmative action program to ensure that no person shall on the grounds of race, creed, color, national origin, sex, or disability be excluded from participating in any employment activities covered in 14 c.P.R. Part 152, Subpart E, and/ or 29 c.P.R. Part 21. Permittee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. Permittee assures that it will require that its covered suborganization provide assurances to Permittee that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations, as required by the aforesaid regulations, to the same effect. Augusta Regional Airport Page 16 March 11,2008 ARTICLE XIII -- DAMAGE TO AIRPORT Permittee shall be liable for any damage to the Airport caused by Permittee, its board members, officers, agents, employees, contractors, subcontractors, or anyone acting under its direction and control, ordinary wear and tear excepted. All repairs for which Permittee is liable shall be made by Commission at Permittee's expense. ARTICLE XIV -- TAXES AND ASSESSMENTS Permittee shall pay all personal property taxes; all sales and other taxes measured by or related to the fees hereunder; all license fees; and any and all other taxes, charges, imports or levies of any nature, whether general or special, which may at any time, be in any way imposed by local, state, or federal authorities, or that become a lien upon Permittee, Commission, or the Airport, by reason of this Permit or Permittee's activities hereunder. Permittee shall have the right, by giving written notice to Commission of its intention to do so, to resort to available or administrative proceeding to contest or obtain the review of any such tax, charge, or assessment at any time before such tax, charge, or assessment becomes delinquent. At Permittee's request, Commission may join in such proceeding. The expenses of such proceeding, including all of Commission's costs and attorney's fees incurred in protecting its own interest in such proceeding and in assisting Permittee in such proceeding, shall be paid by Permittee irrespective of whether Commission participates in such proceeding. ARTICLE XV -- WAIVER Should Permittee breach any of its obligations hereunder, the Commission may thereafter accept from Permittee any payment or payments due hereunder, and continue this Permit in effect, without in any way waiving the Commission's right to exercise its default rights hereunder, or any other remedies provided by law, for said breach. In addition, any waiver by the Commission of any default, breach, or omission of Permittee under this Permit shall not be construed as a Waiver of any subsequent or different default, breach, or omission. Augusta Regional Airport Page 17 March 11, 2008 ARTICLE XVI -- NOTICES All notices by either party to the other shall be made by depositing such notice in the registered or certified mail, of the United States of America, postage prepaid, and such notice shall be deemed to have bean delivered and received on the date of such depositing correctly addressed in the registered or certified mail. All notices to the Commission shall be mailed to: Airport Director Augusta Regional Airport 1501 Aviation Way Augusta, Georgia All notices to Permittee shall be mailed to: The parties from time to time may designate in writing changes to the address stated. ARTICLE XVII -- RELATIONSHIP OP PARTIES It is understood that the Commission is not in any way or for any purpose partner or joint venture with, or agent of, Permittee in said Permittee's use of the Airport. ARTICLE XVIII -- PARTIAL INVALIDITY If any term or condition of this Permit or the application thereof to any person or event shall to any extent be deemed invalid and unenforceable, the remainder of this Permit and the application of such term, covenant, or condition to persons or events other than those to which it is held unenforceable shall not be affected and each term, covenant, and condition of this Permit shall be valid and be enforced to the fullest extent permitted by law. Augusta Regional Airport Page 18 March 11, 2008 ARTICLE XIX - SUCCESSORS The provisions, covenants and conditions of this Permit shall bind, and inure to the benefit of, the legal representatives, successors and assigns of each of the parties. ARTICLE XX - ASSIGNMENT Permittee shall not assign its interest herein without the written consent of the Commission. The Commission's consent shall not be unreasonably withheld. If an assignment is made, Permittee shall continue to be liable, jointly and severally, with the Assignee for the fulfillment of all terms and conditions arising under this Permit subsequent to the assignment, unless the Commission specifically releases Permittee-Assignor from said future liability, in writing. The release shall be effective only if made in writing. All subsequent assigners and assignees shall be subject to this Article as if they were the original Permittee. ARTICLE XXI -- ATTORNEY'S FEES In the event of a breach of this Permit, the breaching party shall pay to the non- breaching party all reasonable attorney's fees, costs and other expenses incurred by the non-breaching party in enforcing its rights of said breach. ARTICLE XXII -- NO DIVERSION Permittee shall not, through its officers, agents, representatives or employees, actively engage in the diversion of customers from Permittee's shuttle vehicles. Nor shall Permittee instruct a potential customer to utilize a taxi cab, limousine, or other form of public transportation, or to utilize any other Airport courtesy vehicles, and offer to reimburse said customer for any cost of said transportation, in order to avoid paying percentage of gross revenue fees to the Commission. However, nothing in this agreement shall prohibit Permittee from engaging in conduct which is required by law, regulation or guideline. Permittee's breach of this Article shall be deemed a material breach of this Permit. Augusta Regional Airport Page 19 March 11,2008 ARTICLE XXIII - HEADINGS The headings contained in this Permit are inserted only as a matter of convenience and for reference and do not define or limit the scope or intent of any provision of the Permit and shall not be construed to affect in any manner the terms and provisions hereof or the interpretation or construction of said terms and provisions. ARTICLE XXIV -- GOVERNING LAW This Permit and all disputes arising hereunder shall be governed by the laws of the State of Georgia. ARTICLE XXV -- RULES AND REGULATIONS Permittee shall not use nor permit the use of any Airport facilities by its officers, employees, or any other persons over whom it has direct control for any purpose or use other than those specifically authorized by this Permit, and such other purposes or uses as may be mutually agreed upon in writing. Permittee shall comply with and shall require its officers and employees and any other persons over whom it has direct control to comply with such Rules and Regulations governing the use of Airport facilities and the access to said facilities pursuant to this Permit and County ordinances which may govern said use and access of the Airport facilities, as may be amended from time to time by the Commission. Augusta Regional Airport Page 20 March 11,2008 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ATTEST: City Clerk ATTEST: Approved as to Content Airport Director Augusta Aviation Commission: By Chairman PERMITEE By Name Title Approved as to Form and Execution By Counsel: Augusta Regional Airport Page 21 March 11,2008