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HomeMy WebLinkAboutR11-132 2012 air incentive programCommissioner V ,VA.. - 1 UL moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 2011- t'J RESOLUTION ADOPTING THE 2012 AIR INCENTIVE PROGRAM WHEREAS, the Board of County Commissioners (hereinafter "Board ") is the fee simple owner of certain real property known as the Eagle County Regional Airport ( "Airport") and is duly authorized by law to administer and govern the Airport; and WHEREAS, as part of this administration, the Board desires to offer promotional incentives to air carriers for new service in order to increase travel using the Airport; and WHEREAS, the Board wishes to clarify its role in contributing to promotional benefits and incentives being offered by its community partners in order to ensure compliance with Federal Aviation Authority Guidelines and to recognize the fiscal limitations on its participation in attracting new service to the Airport; and WHEREAS, the Board desires to adopt the 2012 Air Incentive Program as set forth in Exhibit A, attached hereto and incorporated herein by this reference. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT, the Board hereby adopts and approves the 2012 Air Incentive Program as shown in Exhibit "A." THAT, the 2012 Air Incentive Program shall not limit, in any mamrer, the power of the Board to take any action deemed necessary in regard to the Airport's operational and financial affairs provided said action is consistent with applicable statutory authority. THAT, the Board of County Commissioners finds, determines and declares that this Resolution is necessary for the public health, safety and welfare of the citizens of the County of Eagle, State of Colorado. MOVED, READ and ADOPTED by the Board of County Co i iissioners of the County of Eagle, State of Colorado, at its regular meeting held the P day of November, 2011. Wi Ll Peter Runyon, Sara J. Fisher, Commissioner Commissioner seconded adoption of the fore -going resolution. The roll having been called, the vote was as follows: Commissioner Stavney Commissioner Runyon Commissioner Fisher v / This Resolution passed by County of Eagle, State of Colorado. l� K vote of the Board of County Commissioners of the 2 COUNTY OF EAGLE, STATE OF COLORADO, By and Through It's BOARD OF COUNTY COMMISSIONERS Eagle County Regional Airport Air Service Incentive Program (For Calendar Year 2012) Program: In order to increase nonstop service at Eagle County Regional Airport ( "EGE" or the "Airport"), Eagle County is establishing an air service incentives program to: (1) offer promotional benefits to any air carrier initiating qualifying scheduled passenger service to eligible markets, which are not currently served from the Airport during the summer, for the 2012 Summer Season; (2) offer promotional benefits to any air carrier initiating qualifying scheduled passenger service to eligible markets, which are not currently served from the Airport during the winter, for the 2012 -2013 Winter Season; (3) authorize the Airport Director to extend the promotional period for the 2012 Summer Season and the 2012 -2013 Winter Season beyond the dates prescribed herein; and (4) authorize the Airport Director to implement joint marketing benefits for qualifying scheduled passenger service in addition to the benefits that may otherwise be provided. All incentives must comply with the County's federal obligations, including those set forth in federal statutes, rules, regulations, orders, grant assurances, policies, Federal Aviation Administration (FAA) guidance or other requirements or policies. Promotional Period: The Promotional Period is defined as the entire specified season, i.e., 2012 Summer Season or 2012 -2013 Winter Season. The 2012 Summer Season runs from June 15 to September 4, 2012. The 2012 -2013 Winter Season runs from December 20, 2012 to March 31, 2013. The County will consider whether to renew and extend the incentives program prior to the end of each calendar year. If the incentives program is extended into future years, no carrier will be paid an incentive for service to a specific market that extends beyond 24 consecutive months from the date the carrier commenced service and began receiving an incentive for that service. A carrier could not receive an incentive for service to the same market for more than two Summer Seasons or two Winter Seasons. Qualifying Criteria: Carriers must offer scheduled nonstop service from the Airport to the eligible destination at least once per week. The carrier must provide the service for the entire season in order to qualify for the promotion. Charter operations, including scheduled charters, are not eligible. cAn1L31 I 1 1 All conditions for receiving benefits will be documented in a contract between the County and the qualifying carrier and are subject to approval by the appropriate officials of the County. The agreement will plainly state that such agreement is subordinate to the County's federal obligations, including its AIP grant assurances, and that the incentives agreement may be unilaterally amended by the County to ensure compliance with such federal requirements. If the carrier does not operate regularly scheduled passenger service at the Airport for the entire applicable season, then at the time when it ceases such service, it shall immediately remit to the County all fees that were waived under the program. A carrier that reduces service below a threshold required to obtain a certain level of fee waiver shall immediately remit to the County that portion of its previously waived fees for which it no longer qualifies. For the purposes of determining eligibility, affiliated airlines, joint venture partners and predecessor and successor airlines in an airline merger or acquisition are treated as a single carrier. For example, if Airline A and Airline B marketed joint service to an eligible market non -stop, and in the middle of the season, the flight switched from an aircraft operated by Airline A to an aircraft operated by Airline B, the Airline B service could be combined with the Airline A service to meet the requirement that service be provided continuously throughout the season. Promotional Incentive: Operational Incentive A carrier providing the specified service will qualify for a 100% waiver of landing fees for that service during the 2012 Summer Season or the 2012 -2013 Winter Season, as those seasons are defined herein or may be extended by the Airport Director. Marketing Incentive At the time this policy is being enacted, the County is not committing to provide County or Airport funds to help market the qualifying service during the 2012 Summer Season or the 2012 -2013 Winter Season. If the County does implement such a program for either or both seasons, it will be administered through disbursements directly to the advertising medium, rather than payments to the carrier, with the amount of dollars made available for cooperative marketing to be determined by the County, based on such factors as the frequency of service, seating capacity of aircraft used to provide the service, availability of funds, and other factors deemed appropriate by the County. All marketing incentives would have to comply with the County's federal obligations and FAA policy. Carriers seeking the marketing incentive would be required to enter into a contractual agreement with the County to cooperatively market the new route. As part of the agreement, the carrier would: 1. Agree that when printed materials are used, the name "Eagle County Regional Airport ", with or without its logo and website address, shall appear in the material; 2 2. Agree that for any advertising created the name "Eagle County Regional Airport" shall appear (or be spoken, e.g. in a radio ad) in any such advertising; 3. Obtain written approval of the Airport Director of the content and placement of the advertisement before placing any ad for which it seeks marketing funds from the County. Eligible markets: 2012 Summer Season: 1. Houston, Texas (including George Bush /Intercontinental Houston Airport and William P. Hobby Airport) 2. Chicago, Illinois (including Chicago O'Hare International Airport and Chicago Midway International Airport) 2012 -2013 Winter Season: 1. Toronto, Ontario, Canada (including Toronto Pearson International Airport) 2. San Francisco, California (including San Francisco International Airport, Metropolitan Oakland International Airport, and Norman Y. Mineta San Jose International Airport) 3. Washington, DC (including Washington Dulles International Airport, Reagan National Airport and Baltimore /Washington International Thurgood Marshall Airport) Note: This air service marketing and incentive program will not impact the airline rate base. 3