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RESOLUTION NO. 13817
A RESOLUTION APPROVING AN AIRPORT USE
AGREEMENT BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND SKYWEST AIRLINES,
A UTAH CORPORATION, AND AUTHORIZING THE
PRESIDENT OF CITY COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Airport Use Agreement, by and between the City of Pueblo, a Municipal
Corporation, and SkyWest Airlines, a Utah Corporation, relating to the use of facilities at
Pueblo Memorial Airport, a copy of which is attached hereto, having been approved as
to form by the City Attorney, is hereby approved, subject to the conditions as set forth in
said Airport Use Agreement.
SECTION 2.
The President of City Council is hereby authorized to execute said Airport Use
Agreement on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk
shall affix the Seal of the City thereto and attest the same.
SECTION 3.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Resolution and the attached Agreement to
effectuate the transactions described therein.
SECTION 4.
This Resolution shall become effective immediately upon final passage and
approval.
INTRODUCED November 13, 2017
BY: Ed Brown
City Clerk’s Office Item # M-4
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE:
November 13, 2017
TO:
President Stephen G. Nawrocki and Members of City Council
CC:
Sam Azad, City Manager
VIA:
Brenda Armijo, Acting City Clerk
FROM: Ian Turner, Director of Aviation
SUBJECT: A RESOLUTION APPROVING AN AIRPORT USE AGREEMENT
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION,
AND SKYWEST AIRLINES, A UTAH CORPORATION, AND
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE
SAME
SUMMARY:
An Airport Use Agreement between the City of Pueblo and SkyWest Airlines is attached
for consideration. This agreement concerns the use of certain areas in the Airport
Terminal building for providing passenger airline service at Pueblo Memorial Airport.
PREVIOUS COUNCIL ACTION:
City Council approved this same type of agreement with Great Lakes Aviation, LTD, on
November 23, 2015 to cover the previous U.S. Department of Transportation (USDOT)
agreement term. This Agreement with SkyWest Airlines will cover the new USDOT
agreement term.
BACKGROUND
Air service at the Pueblo Memorial Airport is under the Federal Essential Air Service
(EAS) program which is managed by the USDOT. In February of 2017, the USDOT
issued a request for proposals from airlines to provide air service at Pueblo, CO for the
term beginning December 1, 2017 and ending November 30, 2019. Four airlines
submitted proposals: Aerodynamics, Inc. (ADI), Boutique Air, Great Lakes Airlines, and
SkyWest Airlines. Based on these proposals and input from the community, the USDOT
selected SkyWest Airlines. The Agreement between the City and SkyWest is for the use
of Airport facilities.
FINANCIAL IMPLICATIONS:
The revenue from this agreement is estimated to be $41,071.56 annually, and is
determined by the following:
1) SkyWest Airlines will pay the City $19,515.48 annually for counter, office, and
outbound baggage space.
2) Landing fees are estimated to be $21,556.08 annually and are based on the rate
of $.75 per 1,000 pounds of the maximum allowable gross landing weight.
SkyWest will fly 12 flights a week in a Canadair Regional Jet 200 which has a
maximum landing weight of 47,000 pounds. According to the SkyWest proposal,
they expect to complete 98% of scheduled flights.
BOARD/COMMISSION RECOMMENDATION:
The Airport Advisory Committee is aware of the award from the USDOT and agrees
with SkyWest Airlines taking over the air service. Several members of the Airport
Advisory Committee submitted community comments in support of the air carrier’s
proposal as well.
STAKEHOLDER PROCESS:
There is no stakeholder process required.
ALTERNATIVES:
If this Resolution is not approved, SkyWest Airlines would operate to meet its obligation
to the USDOT, but the City would not receive any revenue from the use of City facilities.
RECOMMENDATION
The Department of Aviation recommends the passage of this resolution.
Attachments:
Airport Use Agreement
PUEBLO MEMORIAL AIRPORT
AIRPORT USE AGREEMENT
THIS LEASE, made and entered into this 13th day of November , 2017, by
and between THE CITY OF PUEBLO, a Municipal Corporation, hereinafter called "Lessor", and
SKYWEST AIRLINES, a Utah Corporation, hereinafter called "Lessee,"
WITNESSETH:
WHEREAS, Lessor now owns certain real property in the County of Pueblo, State of
Colorado, known as the Pueblo Memorial Airport, hereinafter called "Airport" and Lessee is
engaged in the business of transporting persons, property, cargo, and mail by air; and
WHEREAS, Lessor desires to grant the use of, and Lessee desires to use, certain
premises and facilities on the Airport, together with certain rights, licenses, and privileges thereon.
NOW,THEREFORE, Lessor does hereby grant unto Lessee for the purpose of conducting
its air transportation service business, and Lessee does take and accept from Lessor, for such
purpose, the use of certain premises and facilities, rights, licenses, services, and privileges in
connection with and on the Airport as follows.
I. RIGHTS.
A. Use of Airport.
The use in common with others of the common use areas of the Airport and its
appurtenances including, if available and functioning, but not limited to: landing field, runways,
aprons, taxiways, roadways, sewer and water facilities, flood lights, landing lights, and all
conveniences for flying, landing, and take-offs of aircraft of Lessee, which use shall include the
operation of a transportation system by its aircraft for the carriage of persons, property, cargo and
mail, including without limitation: loading and unloading of its aircraft, the right to load and unload
persons, property, cargo and mail at the Airport by such motor cars, buses, trucks or other means
of conveyances as Lessee may require in the conduct of its business, and the right to install,
maintain, use and operate such radio, communications, meteorological and aerial navigation
equipment and facilities in, on, or about the Airport as may be deemed necessary by Lessee for
its operations provided same shall not interfere with Lessor's, or Federal Aviation Administration's
("FAA"), existing or expanded equipment and facilities, as well as the right, subject to Lessor's
approval, to install advertising signs, and any other operation or activity reasonably necessary to
the conduct by Lessee of its air transportation service business or training of its personnel,
provided such other operation or activities will not interfere with the use of the Airport by Lessor
or its employees, agents, or other tenants and such other operation or activities are used on the
Airport.
B. Terminal Building.
1. Lessee shall be entitled to the use of the following space in the terminal
building:
a. Counter Space - 178.5 square feet
b. Office Space- 290.5 square feet
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c. Outbound Baggage Space - 660 square feet
2. The Lessor shall designate the specific areas to be used by Lessee.
Lessee's designated space is shown on Exhibit "A" attached hereto.
3. Indoor operation of gasoline-powered equipment is prohibited in the
terminal building, including the baggage and freight handling areas.
4. Lessee, its employees, passengers, guests, patrons and invitees shall
have the use, in common with others, of any public space now available in the terminal
building, or which may hereafter be made available, including, but not limited to, waiting
rooms, restrooms, etc.
C. Miscellaneous Rights of Lessee Including, But Not By Way of Limitation.
Lessee shall have:
1. The non-exclusive right of ingress and egress, without charge, to and from
the premises outlined in Paragraph I.B above.
2. The right to purchase or otherwise obtain property, facilities or services
deemed by Lessee to be required by, or incident to its operation from any persons or
organizations it may choose, provided that such suppliers of materials and furnishers of
service have complied with the requirements of Section 3-1-2(c) of the Pueblo Municipal
Code to the extent applicable; and further provided, that in consideration of Lessee's
agreement to pay landing fees for its flights that land at the Airport, persons or
organizations furnishing charter aircraft services to Lessee in substitution of Lessee's
scheduled flights shall be exempt from the requirements of said Section 3-1-2(c).
3. Except as herein otherwise specifically provided, the right to use the Airport
and appurtenances is free of any other charges, fees or tolls by Lessor of any nature,
direct or indirect(except sales and use taxes), or any discriminatory restrictions by Lessor
against Lessee or its suppliers or contractors, for use of the Airport and appurtenances,
including, without limitation, the privilege of purchasing, using, storing, withdrawing,
handling, consuming, loading, unloading or delivering of any such property or of
transporting the same to, from, or on the Airport, provided such activities are reasonably
necessary to the conduct by Lessee of its air transportation service business.
II. TERM.
The term of this Lease shall be for the period commencing December 1, 2017, and ending
November 30, 2019. Unless terminated earlier as provided herein, this Lease shall terminate at
the end of the term and Lessee shall have no further right or interest in the leased premises,
except that upon termination of this Lease for any reason, Lessee shall have the right for a period
of ten days after the date of termination, to remove any or all of its property from the Airport,
provided, however, that Lessee shall not be in default in its payments to the Lessor hereunder
and Lessee shall repair all damage to the Airport caused by such removal.
If after the expiration of the term of this Lease, Lessee remains in possession of the leased
premises, Lessee shall continue to pay rent without any express written agreement as to such
holding over, and all terms and covenants of this Lease shall remain in effect; except that, Lessee
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shall be a tenant from month-to-month ata monthly rent equal to one hundred ten (110%) percent
of the rent for the last month payable hereunder.
III. RENTALS AND FEES.
Lessee agrees to pay to Lessor for the use of the premises, facilities, rights, licenses, services
and privileges granted hereunder, rentals, fees and charges according to terms specified in
Exhibit "B" attached hereto and made part hereof.
IV. MAINTENANCE OF AIRPORT BY LESSOR.
Lessor shall provide all maintenance services required to keep in good repair the Airport terminal
building and all appurtenances, facilities and services now or thereafter connected with the
foregoing, and shall operate the Airport in a manner at least equal to the standards or ratings of
Airports of similar size and character issued by the FAA. Without limiting the generality of the
foregoing, the maintenance provided for herein shall include the keeping of runways, taxiways,
aprons, and ramps free of snow and other obstructions insofar as reasonably possible. Lessor
shall maintain the premises leased hereunder for Lessee's use in an attractive condition and shall
provide maintenance necessary to accomplish that end. Notwithstanding the foregoing, Lessee
shall be responsible to repair any damage to Pueblo Memorial Airport or its facilities caused by it
or its agents, employees, or invitees other than that due to normal wear and tear or fire. If Lessor
fails to make such repairs or if Lessor shall be in default in the performance of any provision of
this Airport Use Agreement, such failures or default shall not give rise to any action or claim by
Lessee or its agents, employees or invitees against Lessor; Lessee's only remedy for such failure
or breach is to terminate this Airport Use Agreement.
V. BUILDING BY LESSEE.
Lessee, at its own expense, may construct, install, alter, modify, repair, and maintain in or on any
space which is or may be leased by Lessee hereunder and described in Paragraph I.B, any
improvements that it shall determine to be necessary for use in connection with its business. No
restrictions shall be placed upon Lessee as to the architects, contractors or materialmen who may
be employed by it in connection therewith, who shall have free ingress and egress from said
premises. Notwithstanding the foregoing, no improvement to or modification of the leased
premises shall be made by Lessee until plans and specifications therefore have been first
approved by Lessor, which approval shall not be unreasonably withheld, and provided the
construction and installation of such improvement to or modifications of the leased premises
shall be in compliance with all applicable laws and codes and shall not unreasonably interfere
with Lessor's operation of the Pueblo Memorial Airport or terminal building or other lessees' use
thereof.
VI. LIABILITY AND INSURANCE.
A. Lessee agrees to indemnify, defend and save and keep Lessor, its officers, agents
and employees, harmless from any and all loss, expense, including reasonable attorney fees,
claims, demands, or liability, resulting from the use of the Airport, Terminal Building, Lessee's
designated space, and all other Airport facilities, by Lessee or any of its employees, agents,
licensees, or invitees in their use and occupancy thereof.
B. Lessee shall obtain and maintain in effect, at Lessee's expense, during the term of
this Agreement, Aircraft Liability Insurance covering both owned and non-owned aircraft with
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coverage for both aircraft passengers and non-passengers. The Aircraft Liability Insurance shall
be written with a combined single limit for bodily injury and property damage of
$1,000,000.00 per occurrence and $2,000,000.00 aggregate.
C. Lessee shall also obtain and maintain in effect at Lessee's expense, during the
term of this Agreement, Airport Liability Insurance, covering the premises operations of Lessee,
including operation of mobile equipment, with a combined single limit of not less than
$1,000,000.00 per occurrence for bodily injury and property damage, and such insurance shall
include Products & Completed Operations, Contractual Legal Liability and Personal Injury Legal
Liability. The policy shall apply to liability assumed by the Lessee under this Agreement, and this
Agreement shall be deemed to be an "Airport Contract" required by Lessor as a governmental
authority as a prerequisite for the use of the Airport, the Terminal Building and Lessee's
designated space.
D. Lessee shall self-insure and maintain in force, at Lessee's expense, during the
term of this Agreement, Pollution Liability Insurance covering its liability for bodily injury, property
damage, and environmental damage resulting from sudden and accidental releases of pollution,
and covering related or resultant characterization, cleanup and/or remediation costs arising from
the occupancy and use of the Airport, Terminal Building and designated space. Combined single
limit bodily injury, property damage, environmental liability and cleanup/remediation shall not be
less than $1,000,000.00 in the annual aggregate.
E. Lessee shall obtain and maintain Workers' Compensation and Employer's Liability
coverage protecting Lessee against all claims under applicable State Workers Compensation
laws. Limits of liability shall be not less than:
Workers' Compensation — Statutory
Employer's Liability:
Each Accident $100,000.00
Disease — Policy Limit $500,000.00
Disease — Each Employee $100,000.00
This coverage shall include all of Lessee's employees, including the owner(s), and shall contain
an endorsement waiving subrogation against the City of Pueblo.
F. Prior to the effective date of this Agreement, Lessee shall furnish Lessor with a
certificate of insurance executed by a duly authorized representative of each insurer, showing
compliance with the insurance requirements shown above.
G. Coverage and limits enumerated in this lease insurance provision represent only
the minimum insurance required by the City of Pueblo, and Lessee should rely on its own
expertise to obtain any additional insurance coverage needed to protect the City of Pueblo and
the Lessee under this lease agreement.
H. In the event the premises covered by this Agreement are wholly or partially
destroyed or damaged so as to render the whole or a substantial part thereof unfit for occupancy,
and the same cannot be repaired with reasonable diligence within one hundred twenty(120)days
after the happening of such destruction or damage, or if Lessor, in its sole judgment determines
that it is not economically feasible to repair same, then this Lease, at the option of the Lessee or
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Lessor, shall cease and terminate as of the date of such damage or destruction. Upon such
termination, Lessor shall repay to Lessee any rents theretofore paid by Lessee with respect to
any period after the date of such termination. Lessee shall surrender possession of the premises
to the Lessor upon such termination. If, in the sole opinion of Lessor, such destruction or damage
can be repaired within one hundred twenty(120)days, Lessor shall forthwith repair the same with
all reasonable diligence, and at its own expense, and this Lease shall continue in force and effect.
During the period of such repair, the rent shall be abated in the same ratio as that portion of the
premises which is rendered unfit for occupancy bears to the whole.
VII. CANCELLATION BY LESSOR.
Lessor, in addition to other rights of termination or cancellation given herein or by law, may cancel
this Lease and terminate all or any of its obligations hereunder by giving Lessee thirty
(30)days advanced written notice, upon or after the happening of any one of the following events:
A. The filing of Lessee of a voluntary petition in bankruptcy.
B. The adjudication of Lessee as bankrupt pursuant to such proceeding.
C. The appointment of a receiver of Lessee's assets or the divestiture of Lessee's
estate herein by operation of law.
D. The abandonment by Lessee of its conduct of air transportation service at the
Airport.
E. The default by Lessee in the performance of any covenant or agreement herein
required to be performed by Lessee and the failure by Lessee to remedy such default for a period
of thirty (30) days after receipt from Lessor of written notice to remedy the same; provided,
however, that no notice of cancellation, as above provided, shall be of any force or effect if Lessee
shall have remedied the default prior to receipt of Lessor's notice of cancellation.
F. Recapture of the Airport by the Federal Government and assumption of control
over aviation activities at the Airport by the Federal Government for a period of more than thirty
(30) days.
G. Issuance by any Court of Competent Jurisdiction of any injunction in any way
preventing or restraining the use of the Airport or any part thereof for airport purposes, and the
remaining in force of such injunction for a period of at least thirty (30) days.
H. No waiver of default by Lessor of any of the terms or conditions hereof to be
performed, kept and observed by Lessee, shall be construed to be an act as a waiver of any
subsequent default of any of the terms and conditions herein contained to be performed, kept and
observed by Lessee and acceptance of rent or part thereof by Lessor shall not constitute a waiver
or any breach by Lessee then existing.
VIII. CANCELLATION BY LESSEE.
Lessee, in addition to any other rights of termination or cancellation given herein or by law, may
cancel this Lease and terminate all or any of its obligations hereunder at any time that Lessee is
not in default in its payments to Lessor, hereunder, by giving Lessor thirty (30) days advance
written notice, upon or after the happening of any one of the following events:
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A. The order or the action of the Department of Transportation or other governmental
authority terminating, suspending or relieving Lessee's right or obligation to operate.
B. Issuance by any Court of Competent Jurisdiction of any injunction in any way
preventing or restraining the use of the Airport or any part thereof for airport purposes, and
remaining in force of such injunction for a period of at least thirty (30) days.
C. Any action by the Federal Government or it's agencies refusing to permit Lessee
to operate into, from, or through the Airport such aircraft as Lessee may reasonably desire to
operate thereon, if services provided are not less than essential air service to Pueblo.
D. The breach by Lessor of any of the covenants or agreements herein contained and
the failure of Lessor to remedy such breach for a period of thirty(30)days after receipt of a written
notice of the existence of such breach; provided, however, that no notice of cancellation, as above
provided, shall be of any force or effect if Lessor shall have remedied the default prior to receipt
of Lessor's notice of cancellation.
E. The inability of Lessee to use said premises and facilities continuing for a period
of longer than thirty(30)days due to any deficiency of the Airport or unsafe condition for operating
at the Airport of the type of aircraft then being flown by Lessee or any law, order, rule or regulation
of any appropriate Governmental Authority having jurisdiction over the operations of Lessee or
due to war, or other casualty.
F. The assumption by the United States Government or any authorized agency
thereof of control of said Airport and facilities or any substantial parts thereof.
G. The erection of any obstacle on or near the Airport which would occasion a
modification of Lessee's air carrier operating certificate or similar authorization establishing
minimum safety standards for the operation of Lessee.
H. No waiver of default by Lessee of any of the terms, covenants or conditions hereof
to be performed, kept and observed by Lessor shall be construed to be or act as a waiver by
Lessee of any subsequent default of any of the terms, covenants and conditions therein contained
to be performed, kept and observed by Lessor.
I. At the expiration or termination of any Essential Air Service Contract ("EAS
Contract") between Lessee and the United States Department of Transportation ("DOT") or any
governmental agency succeeding to the jurisdiction of the DOT, under which EAS Contract
Lessee has or had agreed to provide Essential Air Services to The City of Pueblo, Colorado.
IX. ASSIGNMENT.
Lessee may not assign or sublease the premises leased hereunder without the prior written
consent of Lessor, which may be granted or denied at its sole and absolute discretion, except an
assignment to a successor corporation which has merged with, or acquired substantially all the
assets of the Lessee, if such successor corporation provides sufficient financial statements and
records to Lessor demonstrating its financial ability to perform this Airport Agreement and
specifically agrees in writing to perform this Airport Agreement. Any assignment made hereunder
may be conditioned upon the payment of an assignment fee to be determined by the Lessor
and/or an increase in rent.
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X. APPLICATION OF PUEBLO MUNICIPAL CODE.
All terms and conditions of this Lease are hereby made subject to the provisions of Title III,
Chapter 1 of the Pueblo Municipal Code, and in event of conflict between said Pueblo Municipal
Code and any provision herein, said Pueblo Municipal Code shall control.
XI. QUIET ENJOYMENT.
Lessor represents that it has the right to lease the Airport, together with the facilities, rights,
licenses, and privileges herein granted, and has full power and authority to enter into this Lease
in respect thereof, subject to the right of Recapture reserved by the United States of America.
Except as otherwise provided herein, Lessor agrees that, on payment of the rent and performance
of the covenants and agreements hereunder by Lessee, Lessee shall peaceably have and enjoy
the leased premises and all rights and privileges specified herein of the Airport, it's appurtenances
and facilities.
XII. REGULATION.
A. Lessee agrees to observe and obey all reasonable regulations imposed by Lessor
during the term hereof, provided the same are consistent with safety and do not conflict with the
regulations and procedures prescribed by the FAA for operation of Lessee's aircraft at the Airport.
B. This lease is subject to prior FAA approval.
XIII. NOTICES.
Notices to Lessor provided for herein shall be sufficient if served personally or sent by certified
mail, return receipt requested, addressed to: Director of Aviation, Pueblo Memorial Airport, 31201
Bryan Circle, Pueblo, CO 81001 and notices to Lessee, if sent by certified mail, return receipt
requested, addressed to: SkyWest Airlines, 444 South River Road, St George, UT, 84790, or to
such other respective addresses as the parties may designate to each other in writing from time
to time.
XIV. INVALID PROVISION.
It is further expressly understood and agreed by and between the parties hereto that in the event
that any covenant, condition or provision herein contained is held to be invalid by any Court of
Competent Jurisdiction, the invalidity of any such covenant, condition or provision shall in no way
affect any other covenant, condition or provision herein contained, provided, however, that the
invalidity of any such covenant, condition or provision does not materially prejudice either the
Lessee or the Lessor in their respective rights and obligations contained in the valid covenants,
conditions or provisions in this Lease.
XV. SECURITY.
Lessee shall comply with and be responsible for all applicable: (1) FAA Regulations; (2)
Transportation Security Administration Regulations; (3) City Ordinances; and (4) Airport Rules
and Regulations, involving all of their leased area and use of the Airport and terminal building,
including TSAR Part 1540, Lessor's FAA approved Airport Security Program and all other
Department of Transportation and FAA directives pertaining to airport security.
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XVI. CONDUCT OF BUSINESS.
Lessee agrees to operate the premises leased for the use and benefit of the public and that in the
operation of its business upon the leased premises, Lessee agrees:
A. To furnish good, prompt and efficient services adequate to meet all the demands
for its services at the Airport,
B. To furnish such services on a fair, equal and non-discriminatory basis to all users
thereof; and,
C. To charge fair, reasonable and non-discriminatory prices for each unit of sale or
service, provided that the Lessee may be allowed to make reasonable and non-discriminatory
discounts, rebates or other similar types of price reductions to volume purchases.
XVII. NON-DISCRIMINATION.
The Lessee, in the operations to be conducted pursuant to the provisions of this Agreement and
otherwise in the use of the Airport, will not discriminate or permit discrimination against any
persons or class of persons by reason of race, color, religion, sex, disability, or national origin in
any manner prohibited by 49 CFR Part 21 of the Regulations of the Office of the Secretary of
Transportation, or any amendments thereto. The Lessor reserves the right to take such action as
the United States Government may direct to enforce this covenant.
XVIII. AFFIRMATIVE ACTION.
The Lessee assures that it will undertake an Affirmative Action Plan as required by 14 CFR Part
152, Subpart E, as amended, to ensure that no person shall, on the grounds of race, creed, color,
sex, disability, or national origin, be excluded from participating in any employment activities
covered in 14 CFR Part 152, Subpart E. The Lessee 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 such Subpart. The Lessee assures that it will require that its covered sub-
organizations provide assurances to the Lessor that they similarly will undertake an Affirmative
Action Plan and that they will require assurances from the suborganizations as required by 14
CFR Part 152, Subpart E, as amended, to the same effect.
XIX. OTHER AIRCRAFT.
It is clearly understood by the Lessee that no right or privilege has been granted which would
prevent any person, firm or corporation operating aircraft on the Airport from performing any
services on its own aircraft with its own regular employees (including, but not limited to,
maintenance and repair) that it may choose to perform.
XX. NON-EXCLUSIVE RIGHT.
It is understood and agreed nothing herein contained shall be construed to grant or authorize the
granting of an exclusive right.
XXI. DEVELOPMENT OF AIRPORT.
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Lessor reserves the right to further develop or improve the public areas of the Airport including
the landing area of the Airport as it sees fit, regardless of the desires or views of the Lessee, and
without interference or hindrance from Lessee or liability to Lessee.
XXII. MAINTENANCE.
Lessor reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the
landing area of the Airport and all publicly owned facilities of the Airport, together with the right to
direct and control all activities of Lessee in this regard.
XXIII. NATIONAL EMERGENCIES.
During the time of war or national emergency, Lessor shall have the right to lease the landing
area or any part thereof to the United States Government for military or naval use, and if such
lease is executed, the provisions of this lease insofar as they are inconsistent with the provisions
of the lease to the Government, shall be suspended.
XXIV. AERIAL APPROACHES.
Lessor reserves the right to take any action it considers necessary to protect the aerial
approaches of the Airport against obstruction, together with the right to prevent Lessee from
erecting, or permitting to be erected, any building or any other structure on or adjacent to the
Airport which, in the opinion of the Lessor, would limit the usefulness of the Airport or constitute
a hazard to aircraft.
XXV. UNITED STATES.
This Lease shall be subordinate to the provisions of any existing or future Agreement between
Lessor and the United States, relative to the operation or maintenance of the Airport, the execution
of which has been, or may be, required as a condition precedent to the expenditure of the federal
funds for the development of the Airport.
XXVI. EFFECTIVE DATE.
Regardless of the date of execution, the effective date of this Airport Use Agreement is
December 1 , 2017.
XXVII. MISCELLANEOUS.
A. This Airport Use Agreement expresses the entire understanding and agreement
between the Lessor and Lessee with respect to the subject matter hereof and shall be binding
and inure to the benefit of Lessor and Lessee and their respective successors and approved
assigns. No amendment or modification hereof shall be effective unless in writing signed by
Lessor or Lessee.
B. This Airport Use Agreement shall be governed by and construed in accordance
with the laws of the State of Colorado. Venue for any action arising out of this Airport Use
Agreement shall be Pueblo County, Colorado. Lessor and Lessee, to the extent permitted by law,
waive trial by jury in any action brought on or with respect to this Airport Lease Agreement.
C. Lessee is leasing and using the leased premises and Airport "AS IS, WITH ALL
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ITS FAULTS" in its present condition. Except as expressly provided herein, Lessee acknowledges
and agrees that Lessor has not made any representation or warranty with respect to the present
or future condition or suitability for a use of the leased premises or Airport.
D. Lessee shall be responsible for all costs, fees, charges or penalties associated
with the discharge or release of any hazardous material (including petroleum products), or
mitigating, containing, or removal of any contamination or hazardous material (including
petroleum products) on, over and under the leased premises or Airport caused, in whole or in
part, by Lessee, its officers, agents, employees, contractors or fuel suppliers. It is understood that
Lessee is not responsible for any conditions which may be determined to have been caused by
parties other than the Lessee, its officers, agents, employees, contractors or fuel suppliers, or
caused or existing prior to the effective date of this Airport Use Agreement.
E. This Agreement is expressly made subject to the limitations of the Colorado
Constitution. Nothing herein shall constitute, nor be deemed to constitute, the creation of a debt
or multi-year fiscal obligation or an obligation of future appropriations by the City Council of
Pueblo, contrary to Article X, §20 of the Colorado Constitution or any other constitutional, statutory
or charter debt limitation. Notwithstanding any other provision of this Agreement, with respect to
any financial obligation of Sponsor which may arise under this Agreement in any fiscal year after
2017, in the event the budget or other means of appropriations for any such year fails to provide
funds in sufficient amounts to discharge such obligation, such failure shall not constitute a default
by or breach of this Agreement, including any sub-agreement, attachment, schedule or exhibit
thereto, by the Sponsor.
F. Nothing in this Agreement is intended, nor should it be construed, to create or
extend any rights, claims or benefits or assume any liability for or on behalf of any third party, or
to waive any immunities or limitations otherwise conferred upon the City of Pueblo, a Municipal
Corporation under or by virtue of federal or state law, including but not limited to the Colorado
Governmental Immunity Act, C.R.S. §24-10-101, et seq.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of this day
and year first above written.
DATED THIS 13.4~ day of Na✓e.nhz t , 2017.
[ SEAL] CITY OF PUEBLO, A i ICIPAL •"•: ATION
I rag I I IF/0
ATTEST (LL4VL& By
Nc4m, City Clerk Pres'.— e City Council".1.'..r
Stephen G. Nawrocki
SKYWEST AIRLINES
ATTEST: By Y
Customer ervice
Page 10 of 12
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EXHIBIT "B"
•
RENTALS AND FEES
PUEBLO MEMORIAL AIRPORT
AIRPORT USE AGREEMENT
RENTALS
For the term of the agreement, the following rental rates will apply:
(1) Counter Space at $19.32 per square foot per annum.
(2) Office Space at $19.32 per square foot per annum.
(3) Outbound Baggage Space at $15.84 per square foot per annum.
Rentals shall be paid in 12 equal monthly installments in advance without notice and without setoff
or deduction on the first day of each calendar month.
ACTIVITIES FEES
Lessee agrees to pay landing fees at the Pueblo Memorial Airport for all revenue-producing and
non-revenue (training) flights of the Lessee that land at the Airport at the rate of seventy-five (75)
cents per thousand pounds of maximum allowable gross landing weight of such aircraft, to include
any flight that is diverted to the Airport by the Lessee, provided, however, that no landing fees
shall be due and payable in the event an aircraft departs from the Airport to return and land at the
Airport because of meteorological conditions, mechanical or operating causes or for any similar
emergency or precautionary reason.
Within five (5) days following the end of each calendar month, the Lessee shall transmit to the
Director of Aviation a true and accurate report, giving data necessary to calculate the amount of
landing fees. Data for training flights at Pueblo is to be included. Lessee agrees to pay landing
fees monthly within thirty (30) days of date of statements from Lessor.
Page 12 of 12
PUEBLO MEMORIAL AIRPORT
AMENDMENT TO THE
AIRPORT USE AGREEMENT
b
THIS AMENDMENT, is made and entered into this 30 day of /lln Li e^^ F
2019, by and between THE CITY OF PUEBLO, a Municipal Corporation, hereinafter called
"Lessor", and SKYWEST AIRLINES, INC., a Utah Corporation, hereinafter called "Lessee".
WITNESSETH:
WHEREAS, Lessor owns certain real property in the County of Pueblo, State of Colorado,
known as the Pueblo Memorial Airport, hereinafter called "Airport", and Lessee is engaged in the
business of transporting persons, property, cargo, and mail by air; and
WHEREAS, Lessor desires to grant the use of, and Lessee desires to use, certain
premises and facilities on the Airport, together with certain rights, licenses, and privileges thereon;
and
WHEREAS, Lessor and Lessee entered into the Airport Use Agreement ("Lease") dated
November 13, 2017 for a term to conclude on November 30, 2019; and
WHEREAS, Lessor and Lessee now desire to extend the term of the Lease as set forth
herein.
NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained
herein, Lessor and Lessee agree to amend the Lease as follows:
AGREEMENT:
Section II of the Lease is hereby amended to extend the agreement for a second term
from December 1, 2019 through November 30, 2022, unless sooner terminated pursuant
to the terms of the Lease.
II. Regardless of the date of execution, the effective date of this Amendment is November
30, 2019.
III. Except as expressly modified by this amendment, the Lease shall remain in full force and
effect. Except as hereby modified, the obligations of either party to be performed under
the amended Lease are not waived nor excused in any manner but shall be performed in
accordance with the terms and conditions of the Lease as it existed prior to this
amendment.
Page 1 of 2
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of this day
and year first above written.
DATED THIS ak. day of , 2019.
[ SEAL ] CITY OF PUEBLO, A MUNICIPAL CORPORATION
ATTEST:2,MA)-" WAilakla By /
tdre"J'elet;
D City Clerk Nicholas A. Gra Isar, Mayor
Approved as to form:
. • • • " ► V
City Attorney
SKYWEST AIRLINES, I
ATTEST: !' . - -ek I _ /MO$"Airport Oper. ions
Page 2 of 2
PUEBLO MEMORIAL AIRPORT
SECOND AMENDMENT TO THE
AIRPORT USE AGREEMENT
THIS SECOND AMENDMENT ("Amendment") is made and entered into this 15
day of , 2020, by and between THE CITY OF PUEBLO, a Municipal
Corporation, hereafter called "Lessor," and SKYWEST AIRLINES, a Utah Corporation,
hereinafter called"Lessee."
WIT NESSETH:
WHEREAS, Lessor owns certain real property in the County of Pueblo,State of Colorado,
known as the Pueblo Memorial Airport, hereinafter called"Airport,"and Lessee is engaged in the
business of transporting persons, property,cargo,and mail by air; and
WHEREAS, Lessor desires to grant the use of, and Lessee desires to use, certain
premises and facilities on the Airport,together with certain rights,licenses,and privileges thereon;
and
WHEREAS, Lessor and Lessee entered into the Airport Use Agreement("Lease") dated
November 13, 2017 for a term to conclude on November 30, 2019; and
WHEREAS, Lessor and Lessee entered into the Amendment to the Airport Use
Agreement ("First Amendment") dated November 30, 2019 to extend the term of the Lease to
November 30, 2022; and
WHEREAS, Lessor and Lessee now desire to defer payment of rent under the Lease as
set forth herein because of the COVID-19 pandemic.
NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained
herein, Lessor and Lessee agree to amend the Lease as follows:
AGREEMENT:
I. Rent for the months of May, June, and July of 2020 ("Deferred Months"), approximately
$3,300 per month, will be deferred. The rent for the Deferred Months, totaling
approximately $9,900, will be due in five equal installments during the months of August
through December of 2020("Repayment Period")to accompany the regular rent payments
during the Repayment Period. Each installment of the deferred rent due over the
Repayment Period will be approximately $1,980 per month, which when combined with
the regular rent due each month of the Repayment Period will total $5,280 per month.
Should Lessee fail to make any installment of the deferred rent or regular rent during the
Repayment Period,the entire remaining rent amount for the Deferred Months will become
immediately due and payable.
I I. Landing fees as calculated in Exhibit B of the Lease, and all other fees or costs that may
accrue, shall continue to be due during the Deferred Months, Repayment Period, and
thereafter without interruption.
III. Except as expressly modified by this amendment,the amended Lease shall remain in
Page 1 of 2
full force and effect. Except as hereby modified, the obligations of either party to be
performed under the amended Lease are not waived nor excused in any manner but
shall be performed in accordance with the terms and conditions of the Lease as it
existed prior to this amendment.
IN WITNESS WHEREOF,the parties have caused this Amendment to be executed as of this
day and- rfirst above written.
A'T DI day of /Yl7 , 2020.
/47-, ,U -�'
I U [`,N7,, i, t�;� CITY OF PUEBLO, A MUNICIPAL CORPORATION
„i J
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t if,._' 1� 0 a A By e
e r•• ' Nicholas A. Gradisar, Mayor
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Page 2 of 2