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HomeMy WebLinkAbout11908RESOLUTION NO. 11908 A RESOLUTION ESTABLISHING AIRLINE INCENTIVES FOR NEW SCHEDULED AIRLINE PASSENGER SERVICE AT PUEBLO MEMORIAL AIRPORT WHEREAS, the City of Pueblo recognizes the need to attract new scheduled airline passenger service to Pueblo Memorial Airport; and WHEREAS, it is necessary to establish a new scheduled airline service incentive program; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. An incentive opportunity period of 120 days, commencing on the date of passage of this Resolution, is hereby established during which any Part 121 air carriers may seek and obtain incentives for a promotional period by meeting the incentive criteria set forth in Section 2 of this Resolution ( the “Opportunity Period”). SECTION 2. Any 14 CFR, Part 121, FAA certificated Air Carrier shall be eligible to receive temporary promotional incentives to operate out of Pueblo Memorial Airport provided the following conditions are satisfied: 1. The Air Carrier must, within the Opportunity Period, enter into a lease with the City of Pueblo which includes the City’s standard air carrier lease terms, except as modified by the incentives authorized herein. 2. The Air Carrier must agree to provide a minimum of 2 departures per week, commencing within 30 days of the effective date of the lease. 3. The Air Carrier must initiate new, non stop, direct commercial air service to destinations not currently being served at the Airport. SECTION 3. The following incentives shall be offered during the Promotional Period, not to exceed one year, to any Part 121 certificated airline who satisfies the conditions set forth in Section 2 of this Resolution: 1. Airport landing fees will be waived for up to a one year Promotional Period or until discontinuation of service, whichever occurs first. 2. Terminal rental fees will be waived for up to a one year Promotional Period or until discontinuation of service, whichever occurs first. Terminal rental, for which fees are waived, shall include a maximum of two ticket counter positions, a baggage makeup area, and administrative support space. 3. Fuel flowage fees for up-loaded fuel at Pueblo Memorial Airport will be waived for up to a one year Promotional Period, or discontinuation of service, whichever occurs first. 4. The City will provide an advertising match promoting the new destination, provided that the cost thereof shall not exceed $30,000 during the Promotional Period. SECTION 4. Resolution No. 11867 of the City Council is hereby repealed and rescinded effective upon passage and approval of this Resolution. INTRODUCED: June 14, 2010 BY: Judy Weaver /COUNCILPERSON Background Paper for Proposed R ESOLUTION # M-9 AGENDA ITEM DATE: June 14, 2010 DEPARTMENT: DEPARTMENT OFAVIATION MARK LOVIN, DIRECTOR TITLE A RESOLUTION ESTABLISHING AIRLINE INCENTIVES FOR NEW SCHEDULED AIRLINE PASSENGER SERVICE AT PUEBLO MEMORIAL AIRPORT ISSUE Should City Council establish incentives to attract new scheduled airline passenger service to the Pueblo Memorial Airport. RECOMMENDATION Approval of this Resolution. BACKGROUND The Federal Aviation Administration, recognizing the need for communities to encourage new air service, permits airports to offer financial incentives to air carriers for initiating new service. Incentives must be temporary, limited in scope, non discriminatory to air carriers offering like service, and ineffectual to the financial sustainability of the airport. Airports are not permitted to pay air carriers utilizing operating funds but are permitted to waive specific fees for a defined, temporary timeframe. FINANCIAL IMPACT Based upon the average landing weight for narrow body aircraft (150 seats), eight flights per month, and terminal space rates, the financial impact to yearly airport revenues will be $55,071 per year.