AIRPORT ADVISORY BOARD COMMUNICATION
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1 CITY OF TYLER AIRPORT ADVISORY BOARD COMMUNICATION Agenda Number: AABC Date: May 16, 2016 Subject: Request that the Airport Advisory Board consider recommending that the City Council consider adopting an Ordinance amending Tyler City Code Chapter 12, for the inclusion of provisions authorizing the airport manager to negotiate and execute short term advertising contracts in select areas in the airport passenger terminal area at Tyler Pounds Regional Airport and update Chapter regarding rental car activities on the airport. Page: 1 of 4 Item Reference: Tyler City Code Chapter 12 The airport has updated some of the concession agreement requirements to better respond to our performance requirements and streamline opportunities for improved revenue generation performance. As a result the airport requests that the Chapter 12 of the Code of Ordinances for the City of Tyler be updated to reflect current conditions. EXISTING CONDITIONS: 1. Wash Bay Fees: Off-site car rental companies shall pay a minimum fee of $6.00 and receive twelve minutes of wash bay operation with a fee of $1.00 per minute for each additional minute thereafter for use of the rental car wash bay. 2. The airport presently has an airport advertising concession contracts with Clear Channel Advertising. A performance clause in the contract states that The Airport reserves the right to reclaim certain Specialty Floor Displays (located in the ticketing area) only if the location remains unsold by Concessionaire at any point after the 1 year anniversary of the commencement date of the extension term. The Airport agrees to provide Concessionaire with 90 day written notice of their interest to utilize the terminal space for alternative opportunities, if they so choose. Should any of these two locations become vacant and Concessionaire is unable to fill that space with a new advertiser within 90 days, Airport has the right to pursue an occupant for a one year advertising lease or other alternative opportunities followed by a month to month tenancy. Concessionaire may resume its efforts to lease the Specialty Floor Display space concurrently with Airport at the end of the one year lease term. If Airport secures a lessee for the space described, Airport would receive 100% of the lease proceeds from the Specialty Floor Display space which was
2 secured by Airport. However nothing would prevent Concessionaire from continuing its efforts to lease the Specialty Floor Display space for advertising until Airport notified Concessionaire that the space was leased. 3. The code presently sets the off-site car rental business permit fee at fifty dollars ($50.00) annually plus eight percent (8%) of all gross business receipts on net time and mileage originating from operations at the Airport per month. Permit shall allow usage of car rental return lot for returned cars. Said permit fee shall cover parking used by off-site car rental businesses while commercial airline operations are at the Northside Terminal Building. Off-site car rental businesses shall pay a fee of $10.00 per space per month for use of parking spaces at the Westside Terminal Building. 4. Customer Facility Charge. Until April 1, 2013, there is imposed at Tyler Pounds Regional Airport, a Customer Facility Charge (CFC) of two dollars ($2.00) per rental car contract per day on any rental of a car at the Airport. Commencing April 1, 2013, there is imposed at Tyler Pounds Regional Airport, a Customer Facility Charge (CFC) of three dollars ($3.00) per rental car contract per day on any rental of a rental car at the Airport. PROPOSAL: 1. Delete references allowing off-site car rental companies from using the airport wash bay facility. Off-site car rental companies shall pay a minimum fee of $6.00 and receive twelve minutes of wash bay operation with a fee of $1.00 per minute for each additional minute thereafter for use of the rental car wash bay. 2. Authorizing the Airport Manager to negotiate and execute short term advertising contracts of not more than one year for advertising space on the airport as permitted in the airport advertising concession contracts. The rates for specialty location contracts shall range from $50.00 per month to $ per month depending on the area and utilities utilized. 3. Amending the code by setting the off-site car rental business permit fee to two hundred fifty dollars ($250.00) annually plus eight percent (8%) of all gross business receipts on net time and mileage originating from operations at the Airport per month. Permit shall allow usage of car rental return lot for returned cars. 4. Deleting references about parking spaces at the Northside Terminal Building. 5. Amend and increase the off-site car rental businesses fee to $15.00 per space per month for use of parking spaces at the Westside Terminal Building Tyler Pounds Regional Airport. 6. Amend the Customer Facility Charge as follows. Until April 1, 2013, there is imposed at Tyler Pounds Regional Airport, a Customer Facility Charge (CFC) of two dollars ($2.00) per rental car contract per day on any rental of a car at the Airport. Commencing April 1, 2013, there is imposed at Tyler Pounds Regional Airport, a Customer Facility Charge (CFC) of three dollars ($3.00) per rental car contract per day on any rental of a rental car at the Airport. RECOMMENDATION: It is recommended that the Airport Advisory Board consider recommending to the City Council to approve amending City Code Chapter 12, for the inclusion of provisions authorizing the airport manager to negotiate and execute short term advertising contracts in select areas in the airport passenger
3 terminal area at Tyler Pounds Regional Airport and update Chapter regarding rental car activities on the airport. ATTACHMENTS: 1. Exhibit A Drafted/Recommended By: Department Leader Davis Dickson
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