COUNCIL COMMUNICATION

DATE:

       

8-19-02

SUBJECT:  FINAL READING OF ORDINANCE NO.2002-O-195

Authorizing the City Manager to amend Ordinance No. 99-O-242 dated August 23, 1999, Establishing and Adopting Commercial Aircraft Landing Fees and Landing Fee Rates for the Laredo International Airport, as follows: Section 2 is amended to include a non-signatory airline category and non-signatory landing fee of $0.90 (ninety cents) per thousand pounds; Section 5 is deleted; Section 6 is amended to delete the requirement that the airport first invoice airline to receive landing fee payments; Section 7 is amended so as to not exempt commercial airlines from paying a landing fee; providing for an effective date.  

 

INITIATED BY:    Cynthia Collazo

                                 Assistant City Manager                            

STAFF SOURCE:    Jose L. Flores

                                    Airport Director

PREVIOUS ACTION:  On August 5, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

BACKGROUND:   This amendment applies to all commercial scheduled and non-scheduled passenger and cargo as well as air feeder line, supplemental air carrier, charter service and air taxi service. Commercial airlines purchasing aviation fuel will no longer be exempt from the paying landing fees or fuel flowage fees.

 

A survey of airports in our region revealed that Brownsville, McAllen, Harlingen and Corpus Christi charge both fees to the commercial service airlines.

 

Airport             Landing Fee (Signatory)     Landing Fee Non-Signatory          Fuel Flowage Fee

McAllen                $0.80                                         N/A                                           $0.04

Harlingen                0.66                                          N/A                                            0.04

Brownsville            0.52                                          $0.68                                          0.06

Corpus Christi        1.12                                          N/A                                            0.0625

Laredo                    0.60                                          0.90 Proposed                            0.055

San Antonio           1.00                                        $1.00

Non-Signatory Airlines are those airlines w/o an agreement with the airport and are typically charters with infrequent operations, it takes a greater effort to track and collect landing fees and landing reports from the non-signatory airlines.

 

The Airport is experiencing increased operating expenses to maintain and secure the airport, as well as needing to fund its capital improvements program.    

FINANCIAL IMPACT :  Landing Fee Revenues

                                            Account No. 242-0000-361-2061

                                            Projected Revenues for FY 02-03:  $120,000.00                                                     

COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.

STAFF RECOMMENDATION:  That the City Manager be authorized to implement said Ordinance.

 

 

ORDINANCE NO. 2002-O-195

 

AMENDING ORDINANCE NO. 99-0-242 DATED AUGUST 23, 1999, ESTABLISHING AND ADOPTING COMMERCIAL AIRCRAFT LANDING FEES AND LANDING FEE RATES FOR THE LAREDO INTERNATIONAL AIRPORT, AS FOLLOWS: AMENDING SECTION 2 TO INCLUDE A NON-SIGNATORY AIRLINE CATEGORY AND NON-SIGNATORY LANDING FEE OF $0.90 (NINETY  CENTS) PER THOUSAND POUNDS: SECTION 5 IS DELETED; SECTION 6 IS AMENDED TO DELETE THE REQUIREMENT THAT THE AIRPORT FIRST INVOICE AIRLINE TO RECEIVE LANDING FEE PAYMENTS; SECTION 7 IS AMENDED SO AS TO NOT EXEMPT COMMERCIAL AIRLINES FROM PAYING A LANDING FEE; PROVIDING FOR AN EFFECTIVE DATE.

 

            WHEREAS, the Airport Director recommends that the City Council approve the proposed commercial aircraft landing fees and landing fee rate ordinance, in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport.

 

            WHEREAS, the Airport Advisory Board finds that said Ordinance is in the best interest of the Airport; and

 

            WHEREAS, the City Council of the City of Laredo is of the same opinion.

 

            NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

Section 1:         Definitions:

 

            “Laredo International Airport” or “Airport”:  That certain area administered by City of Laredo pursuant to Indenture from the United States of America to the City of Laredo, dated February 21, 1975, and consisting of all the area bounded by Saunders Street to the South, McPherson Avenue to the West, Lake Casa Blanca to the East and undeveloped land to the North, and being more particularly described in that certain Deed of Indenture filed in Volume 478 at page 471 of the Deed of Records of Webb County, Texas, this also includes the Airport Director.

 

            Airline:  Any provider of scheduled or non-scheduled air carrier service to include air feeder line, supplemental air carrier, charter service or air taxi service.

 

            Commercial aircraft:  Any aircraft operated either for passenger or cargo purposes on scheduled or non-scheduled flights, by a scheduled air carrier, an air feeder line, a supplemental air carrier, a charter service or an air taxi service.

 

            “Maximum certificated gross landing weight”  the maximum landing weight approved by the Federal Aviation Administration, or its successor in duties, for landing that aircraft at Airport.

 

 “Fee Landings”  (in the singular, or in the plural form) the actual landings of aircraft by the Airline at Airport, whether such be in revenue, or non-revenue service, except those which return to Airport prior to landing at another airport for weather, mechanical, or emergency reasons.

 

            "Signatory Airlines" shall mean those airlines, including code sharing or affiliates of such airlines, providing Air Transportation to and from the Airport that have executed agreements with Airport­. 

 

Section 2:         The Landing Fees shall be determined by multiplying the Land Fee Rate  times the total number of thousand pounds of maximum certificated gross landing weight of Airline’s aircraft making Fee Landings at Airport.

 

The Landing Fee Rate for Signatory Airlines shall be $0.60 (sixty cents) beginning on January 1, 2001 and will be so until this Ordinance is amended by City of Laredo.

 

The Landing Fee Rate for Non-Signatory Airlines shall be $0.90 (ninety cents) effective sixty (60) days from the date of the public hearing at which this Ordinance is approved and will be so until this Ordinance is amended by City of Laredo.

 

Section 3:         Airline shall furnish to Airport on or before, the fifteenth (15th) day of each month, a written report, in a form approved by Airport, showing Airline’s Fee Landings at Airport during the preceding month; such report shall include the number and the type of aircraft and the maximum certificated gross landing weight thereof and to include the net cargo landed and enplaned at Airport.

 

Section 4:         Airline and ground Handling providers shall report to Airport on or before the fifteenth (15th) day of each month for the preceding month, a written report, showing the number of aircraft landings by types of aircraft, for which it provided ground handling services of any kind, to include Airlines which do not have written agreements with Airport to use the Airport, and the names and addresses of operators of such aircraft.

 

Section 5:         On or before the tenth (10th) day following receipt of written report from Airline, Airport will transmit to Airline an invoice for Landing Fees due for the preceding month.          Section 5 is deleted.

 

Section 6 5:      Airline shall pay to Airport the Landing Fees due for the preceding month within twenty (20) days of the succeeding month without notice, demand, counterclaim, set off, deduction or defense and without abatement, suspension, deferment or diminution or reduction. If Airline fails to pay said Landing Fees when due and payable as stated, herein, then Airline shall pay interest to Airport, calculated at the rate of one and one half percent per month, calculated on a daily basis. 

 

Section 7 6:      Notwithstanding anything to the contrary contained herein, Airline shall not be exempt from paying Landing Fees on a particular landing or landings when the Airline purchased aviation fuel at Airport corresponding to that landing or landings and paid the Fuel Flowage Fee charged on fuel sales.          

 

Section 8 7:      The City Manager be and is hereby authorized to implement the commercial aircraft landing fees and landing rate ordinance for the Laredo International Airport.

 

Section 9 8:      This Ordinance shall become effective upon the expiration of sixty (60) days from the date of the public hearing at which this Ordinance is approved, in accordance with Section 6.10 of the City Charter.

 

            PASSED BY THE CITY COUNCIL AND APROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2002.

 

 

 

 

_________________________

ELIZABETH G. FLORES

MAYOR

 

 

ATTEST:

 

_________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

APPROVED AS TO FORM:

 

JAIME L. FLORES

CITY ATTORNEY

 

 

BY:______________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY