3. THAT the Mayor and Corporate Officer be authorized to execute all documents related to this matter.

Transcription

1 SO 1~A ABBOTSFORD Report No. AM August 30, 2012 File No: /1022 COUNCIL REPORT Executive Committee To: From: Subject: Mayor and Council Mike Pastro, Airport General Manager Proposed Amendments to Abbotsford Airport Fee Bylaw RECOMMENDATION 1. THAT Report No. AM , dated August 30,2012, from the Abbotsford Airport General Manager, regarding amendments to the Abbotsford Airport Fee Bylaw, be received; 2. THAT Bylaw No , cited as "Abbotsford Airport Fee Bylaw, 2004, Amendment Bylaw No. 11 ", proceed for three readings at the next Regular Council meeting; and 3. THAT the Mayor and Corporate Officer be authorized to execute all documents related to this matter. BACKGROUND The current Abbotsford Airport Fee Bylaw No is maintained on an annual basis and provides for an annual increase contained in its Schedule "A" based on the Consumer Price Index for Vancouver, British Columbia with the exception of its Vehicle Parking Fees. In order to ensure that Abbotsford International Airport (YXX) fees are competitive and transparent, a comprehensive rate analysis of other similar sized airports within BC and across Canada was conducted. Any changes to the existing Bylaw would need to meet the following criteria:.:. Ensure YXX fee structure is consistent with other airports to allow easy comparison.:. Ensure that YXX maintains its position as a low cost airport.:. Reduce administrative burden associated with annual updates The current fee schedule charges Air Carriers that us the Air Terminal Building a General Terminal Fee (GTF) and exempts them from paying a landing fee. Most airports, including Vancouver International Airport (YVR) and Victoria International Airport (YY J) charge separate landing fees and GTF's, making it very difficult to compare YXX's rates. Further complicating the comparison; the weight categories used for assessing these charges are not consistent with those used at YVR. Also included is a Non-Participating GTF charge that applies to any Air Carrier that has not signed the YXX Airport Improvement Fee (AIF) agreement and does not collect and remit AIF funds to the Airport. The current Non-Participating GTF is excessively high and it is recommended that this charge be eliminated and replaced by one more fairly assessed. The proposed new structure would set landing fees at the same rates as YVR and

2 Report No. AM Page 2 of 4 establish a GTF that is approximately 24.5% of the YVR per seat charge resulting in a combined landing fee and GTF that averages 63% of YVR's charge. Aircraft parking fees are currently considerably lower than at other lower mainland airports; this is true for both commercial (large aircraft) and general aviation. The proposed new aircraft parking fees are recommended to be set at 80% of those charged by YVR and annual parking rates equivalent to 9 months of parking are also recommended. By comparison, YVR and YY J do not offer an annual discount. Weekly vehicle parking rates are also to be amended by increasing the current rate to include only one free day per week rather than two. No other airport offers a weekly discount including YVR and Bellingham (BLI). Short term parking fees have not been increased. It is further recommended that all fees contained within the Abbotsford Airport Fee Bylaw No be made effective for a period of three years commencing on January 1, 2013 and ending on December 31, 2015 and to be fixed for all aeronautical fees, and increased by a 2% inflation factor per year on all other remaining fees. Further to resolution R , passed by the Abbotsford Airport Authority on August 23, 2012; it is recommended that the Bylaw be amended per attached Schedule A and that the rates be set for a three year period ending December 31, ANALYSIS Aircraft Landing Fees: The current fee schedule charges only a General Terminal Fee (GTF) to any Air Carrier using the Air Terminal Building for the loading and unloading of passengers and exempts them from paying a landing fee. Most airports, including Vancouver International Airport (YVR) and Victoria International Airport (YV J) charge separate landing fees and GTF's, making it very difficult to compare YXX's rates. It is recommended that the landing fees be separated out from the GTF charge and that the weight categories also be amended to align with those used at YVR in order to facilitate direct comparison with other airports. Landing fees will be set at the same rates as those used by YVR; not significantly increased since the 1990's and considered low by industry standards. Attached as Appendix A is a chart showing both current and proposed Aircraft Landing Fees. General Terminal Fees: The General Terminal fees are proposed to be 0.00 for aircraft with fewer than 12 seats, 1.74 per seat for aircraft with between 12 to 99 seats and.811 per seat for aircraft with over 100 seats. On average, YXX's GTF charge will be 24.5% of YVR's. The resulting combined landing fee and GTF proposed for YXX will average 63% of those charged at YVR for a similar sized aircraft. International flights would be assessed a GTF based on 2.2 times the rate charged for domestic flights; this also in accordance with the rates used by YVR. Attached as Appendix B is a chart showing both current and proposed General Terminal Fees. The current fee structure also includes a Non-Participating GTF charge that applies to any Air Carrier using the Terminal Facilities for the loading and unloading of passengers

3 Report No. AAA Page 3 of 4 but has not signed the YXX Airport Improvement Fee (AIF) agreement and does not collect and remit AIF funds to the Airport. It is a combination of the landing fee, GTF and a charge that compensates for the lack of an AIF. The current Non-Participating GTF is excessively high and it is recommended that this charge be eliminated. We propose that air carriers or aircraft operators who use the terminal processing facilities but have not signed the YXX AIF agreement would now be charged the normal landing fee, the normal GTF and a new Non-Participating Facility Charge (NPFC). The NPFC will be equivalent to the existing AIF (5 within BC and 10 outside of BC) but will be applied to the total number of seats on an aircraft instead of per passenger which is how the AIF is calculated. Furthermore, the full amount of the NPFC will be collected by the Airport directly from the air carrier unlike the AIF, the collection of which yields the air carrier an 8% handling fee. Under this proposed fee structure, there would continue to be a cost advantage to our scheduled air carriers who have signed the AIF agreement but nonparticipating carriers would not be penalized to such an extent as they are currently. Attached as Appendix C is a chart showing the newly proposed Non-Participating Facility Charge. Aircraft Parking Aircraft parking fees for large aircraft are proposed to be 80% of YVR's. Light aircraft parking fees will also be adjusted upward to 80% of YVR's rates to be more in line with other lower mainland general aviation airports but will continue to be less expensive than most to maintain YXX's position as a general aviation-friendly airport. Annual parking rates equivalent to 9 months of parking are proposed, unlike YVR and YY J that do not offer an annual discount. Attached as Appendix D is a chart showing the current and proposed Aircraft Parking Fees. Vehicle Parking Fees Weekly vehicle parking rates are also to be amended by increasing the current rate which is calculated by multiplying the daily rate by 5 days (thereby providing two days free) to a weekly rate that is calculated by multiplying the daily rate by six days (thereby providing one day free). No other airport offers a weekly discount including YVR and BLI. No changes or increases to short term parking charges. Attached as Appendix E is a chart showing the current and proposed Vehicle Parking Fees. Other Charges No changes are recommended to how the following charges are calculated; only that it is recommended that all be made effective for a three year period commencing on January 1, 2013 and ending on December 31, 2015 and that they be increased by 2% each year with the exception of the Loading Bridge Fee which will be frozen for the three year period along with all other aeronautical fees. Attached as Appendix F is a chart showing the proposed rates for all other charges. All fees listed were increased by 2% from the 2012 amount effective January 1, 2013.

4 Report No. AAA Page 4 of 4 FINANCIAL IMPACT In developing the proposed new fees and charges, particularly those directly related to commercial aviation, consideration was given to the impact any significant change would have on our current Air Carriers. Financial modeling was done and utilizing existing service levels and various rates the proposed new rates were determined. WestJet has been given the opportunity to review all of the proposed fees and is agreeable to the recommended changes and satisfied with the justification for making the changes suggested. Orca Airlines and Island Express have also reviewed the proposed changes. Attached as Schedule G is a chart showing the impact on WestJet for the three year period which amounts to an overall increase of 0.6% or 24,000 versus maintaining the status quo and increasing by an estimated 2% CPI annual adjustment for all rates and charges. COMMUNICATION PLAN The Airport "Operating Agreement" between the City and Her Majesty the Queen requires that the City give not less than 60 days advance public notice through appropriate local media of its intention to impose any airport user charges or any planned increases in airport charges. Public notice of the proposed fee increases in Bylaw must therefore be published in accordance with the City's standard practices at least 60 days prior to adoption of the Bylaw. SUMMARY Bylaw No , cited as Abbotsford Airport Fee Bylaw, 2004, as amended, is further amended by deleting and replacing Schedule A, Section 7 (a) with the proposed Bylaw No cited as Abbotsford Airport Fee Bylaw, 2004, Amendment Bylaw No.11. Pref{are Approved by: Mike Pastro Title: Manager, Finance & Administration Title: Airport General Manager

5 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AAA AIRCRAFT LANDING FEES (Based on cost per 1,000 kg) APPENDIX A Current Fees: Maximum Take-off Weight Rate up to 3,000 kg 3,001 kg to 20,000 kg 20,001 kg to 40,000 kg 40,001 kg to 60,000 kg 60,001 kg to 80,000 kg 80,001 kg to 100,000 kg 100,001 kg to greater no charge Proposed Fees: Maximum Take-off Weight KG's Januarv 1, 2013 Jet Others per 1,000kg MTOW Incr 0% JanuaD/ 1, 2014 Jet Others per 1,000kg MTOW Incr 0% JanuaD/ 1, 2015 Jet Others per 1,000kg MTOW < 3,000 3,001 to 21,000 21,001 to 45,000 45,001 >

6 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AAA GENERAL TERMINAL FEES (Based on cost per seat) APPENDIXB Current Fees: Participating Operators 1-9 seats seats seats seats seats seats seats 400 or more seats Domestic International Non-Participating Operators 1-9 seats seats seats seats seats seats seats 400 or more seats Domestic International Proposed Fees: Number of Seats Januarv Incr Januarv % Incr Januarv % Domestic International Per Seat Domestic International Per Seat Domestic International Per Seat <

7 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AAA NON-PARTICIPATING FACILITY CHARGE - departing flights APPENDIXC Proposed Fees: Incr 0% Within BC Outside BCllnternational Incr 0%

8 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AAA AIRCRAFT PARKING FEES APPENDIX D Current Fees: Maximum Take-off Weight Daily Monthly Annual up to 3,000 kg 3,001 kg to 20,000 kg 20,001 kg to 40,000 kg 40,001 kg to 60,000 kg 60,001 kg to 80,000 kg 80,001 kg to 100,000 kg 100,001 kg to greater , , , , , , , , , Prol2osed Fees: Maximum Take-off Weight KG's Daily Incr 0% Janua!y 1, Janua!y 1, 2014 Monthly Annual Daily Monthly Annual Incr 0% Janua!y 1, 2015 Daily Monthly Annual < 2,000 2,001 to 5,000 5,001 to 10,000 10,001 to 30,000 30,001 to 60,000 60,001 to 100, ,001 to 200, ,001 to 300, ,000 > , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,485.42

9 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AAA Vehicle Parking Fees APPENDIX E Current Fees: Air Terminal Curbside (passenger drop off) Hourly Parking (Passenger Drop Off 1 Pick Up) no charge first hour each subsequent hour Up to 3 Hours with 3.60 maximum purchase Long-Term/Daily Parking (Overnight Parking) 8.03/24 hour period Weekly Parking week Monthly Parking days Annual Parking 1, year Proposed Fees: Passenger/Customer Parking 2013 Apr 01 mcr U"/o mcr U/O Air Terminal Curbside (passenger drop off) Hourly Parking (Drop Off/Pick Up) 1st Hour 2nd & 3rd Max 3 Hours Long-Term/Daily Parking (Overnight Parking) Weekly Parking 6 Days Monthly Parking 4 Weeks (28 Days) Annual Parking 12 X Monthly , ,

10 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AM AIRPORT MAINTENANCE CHARGE (Based on per square meter) APPENDIX F Land Area 2013 Incr 2% Incr 2% less than 2 hectares (20,000 m 2 ) to 4 hectares (20,000 m 2 to 40,000 m 2 ) Qreater than 4 hectares (40,000 m 2 ) PUBLICATION RACKING FEES Inside ATB Outside ATB Incr 2% 2014 per rack per rack per rack per rack Incr 2% per rack per rack GROUND TRANSPORTATION FEES Vehicle Licencing Coach Buses Limousines Shuttle Buses Taxi Cabs Licence Plate Replacement Incr 2% 2014 per vehicle per vehicle per vehicle per vehicle per vehicle per vehicle per vehicle per vehicle per plate per vehicle 2015 Incr 2% per vehicle per vehicle per vehicle per vehicle per plate Curbside Parking Coach Buses Limousines Shuttle Buses Taxi Cabs per space per vehicle per space per space per space per space per space per space per space per space per space per space FUEL CONCESSION FEES (Based on per litre) Fuel Ty(2e 2013 Incr 2% Incr 2% Aviation Gasoline Jet Fuel Automotive Gasoline LOADING BRIDGE CONNECTION FEE 2013 Incr 0% Incr 0% Connection Fee Per Turn (maximum 1 hour)

11 ABBOTSFORD INTERNATIONAL AIRPORT Report No. AAA APPENDIX G ,278, ,244, , % ,278, ,269, , % ,278, ,295, , % TOTAL 3,834, ,809, , %

12 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No The Council of the City of Abbotsford, in open meeting assembled, ENACTS AS FOLLOWS: 1. CITATION Bylaw No may be cited as "Abbotsford Airport Fee Bylaw, 2004, Amendment Bylaw No. 11". 2. AMENDMENTS Bylaw No , cited as "Abbotsford Airport Fee Bylaw, 2004", as amended, is further amended by; (a) Adding the definition of Commercial Apron in Section 2 Interpretation in alphabetical order as follows: "Commercial Apron" means the apron area immediately adjacent to the terminal building used for the enplaning and deplaning of passengers;" and Deleting and replacing "Participating Operator" with the following: "Participating operator" means an Airline/Airline Operator that uses the terminal processing facilities who has signed an Airport Improvement Fee agreement with the City of Abbotsford Airport to collect and remit Airport Improvement Fees to the Airport.; and (b) deleting and replacing Schedule "A", with the attached Schedule "A". 3. EFFECTIVE DATE This Bylaw shall come into effect January 1, READ A FIRST TIME this READ A SECOND TIME this READ A THIRD TIME this ADOPTED this day of day of day of day of,2012,2012,2012,2012 R. Bruce Banman Mayor William Flitton Corporate Officer

13 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 2 SCHEDULE "A" 1. Aircraft Landing Fees (Based on cost per 1,000 kg) (a) Maximum Take-off Weight KG's < 3,000 kg 3,001 kg to 21,000 kg 21,001 kg to 45,000 kg 45,001 > January 1, 2013 (per 1000 kg MTOW) Jet Others January 1, 2014 (per 1000 kg MTOW) Jet Others January 1! 2015 (per 1000 kg MTOW) Jet Others Applicability (b) (c) The Aircraft landing fee rates listed in subsection (a), above, shall be paid for all domestic, transborder and international landings of piston, turbo-prop and jet powered fixed-wing and rotary aircraft owned or operated by private, commercial, corporate, military or government interests. Commercial or corporate aircraft operators and aircraft maintenance providers that are current tenants or sub-tenants of the City of Abbotsford Airport, in good standing, may pay 10% of the prevailing aircraft landing fee for a pre-arranged Training/Test Flight provided that the tenant or sub-tenant first enters into a Training/Test Flight landing fee agreement with the City of Abbotsford Airport.

14 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 3 SCHEDULE "A" (continued) 2. Aircraft Parking Fees (a) Maximum Take-offWeiQht January 1, 2013 KG' Dailv Monthlv A, <2, ,001 to 5, ,001 to 10, , ,001 to 30, , ,001 to 60, , ,001 to 100, , ,001 to 200, , , ,001 to 300, , , ,000> , , January 1! 2014 Dailv Monthlv A , , , , , , , , , , January 1! 2015 Dailv Monthlv A , , , , , , , , ~124. 9~_ 1?, , _._- -

15 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 4 SCHEDULE "A" (continued) Applicability (b) (c) Aircraft parking fee rates listed in subsection (a), above, shall be paid in respect of all piston, turbo-prop and jet powered fixed-wing and rotary aircraft owned or operated by private, commercial, military or government interests. Aircraft parking fees shall not apply to aircraft parked for less than six hours. 3. General Terminal Fees (Based on # of seats per aircraft) (a) < Number of Seats January 1, 2013 Per Seat Domestic International January 1, 2014 Per Seat Domestic International January 1, 2015 Per Seat Domestic International Applicability (b) (c) The general terminal fee rates listed in subsection (a), above, shall be paid in respect of all aircraft operated by Participating Operators and Non-Participating Operators using the Commercial Apron/Air Terminal Building facilities for the loading or unloading of passengers. The general terminal fee rates shall be based on maximum passenger seating capacity of aircraft upon arrival at the City of Abbotsford Airport. 4. Non-Participating Operator Facility Charge (a) D es f Ina f Ion Within BC Outside BCllnternational J anuary J anuarv J anuary

16 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 5 Applicability (b) (c) SCHEDULE "A" (continued) The Non-Participating Operator rates shall be based on maximum passenger seating capacity of aircraft upon arrival at/departure from the City of Abbotsford Airport; and payable by all carriers who do not have a signed Airport Improvement Fee agreement with the City of Abbotsford Airport and make use of any or all of the following: pre-board screening, customs, hold bag screening, baggage carousel or counters. The Non-Participating Operator facility charge will be payable only once per aircraft turn; and charged either at time of arrival or departure depending on when the terminal facilities are used. 5. Airport Maintenance Charge (Based on per square meter) (a) Land Area Less than 2 hectares (20,000 m2) 2 to 4 hectares (20,000 m 2 to 40,000 m2) greater than 4 hectares (40,000 m2) January % Increase Januajy % Increase Januarv Applicability (b) (c) The airport maintenance charge rates listed in subsection (a), above, shall be paid annually by all airport land tenants, excluding agricultural. The airport maintenance charge rates shall be calculated on the basis of the total land area, including building, occupied under each individual lease or license. 6. Publication Racking Fees (a) Air Terminal Building Inside Outside January 1! Irack Irack 2% Increase January 1! Irack /rack 2% Increase January 1! Irack /rack (b) The publication racking fees listed in subsection (a), above, shall be paid annually in respect of all newspaper, newsletter and magazine publications racked at the Air Terminal Building.

17 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 6 SCHEDULE "A" (continued) 7. Ground Transportation Fees (B/L , ) (a) Vehicle Licencing J anuarv Coach Buses /vehicle Limousines /vehicle Shuttle Buses /vehicle TaxiCabs /vehicle Licence Plate /plate Replacement 2% Increase J anuarv /vehicle /vehicle /vehicle /vehicle /plate 2% Increase J anuarv /vehicle /vehicle /vehicle /vehicle /plate (b) Curbside Parking J anuarv Coach Buses /space Limousines /space Shuttle Buses /space TaxiCabs /space 2% Increase J anuarv /vehicle /space /space /space 2% Increase J anuarv /space /space /space /space (c) (d) (e) The ground transportation fees listed in subsection (a) above, shall be paid annually by every coach, bus, limousine, shuttle bus, and taxi operator providing ground transportation services at the Air Terminal Building on a pre-arranged or walk-up basis. Curbside parking fees shall not be payable for use of ground transportation queuing areas. A plate replacement fee shall be paid by every ground transportation operator requiring a new airport licence plate due to theft, damage, or loss.

18 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 7 SCHEDULE "A" (continued) 8. Vehicle Parking Fees (a) Passenger/Customer Parking Air Terminal Curbside (passen~ er drop off) Hourly 1 st Hour Parking (Drop 2 nd & 3 rd Hour Off/Pick Max. 3 Hours Up) Long-Term/Daily Parking (Overnight Parking) Weekly Parking (6 days) Monthly Parking 4 weeks (28 days) Annual Parking 12 x Monthly January , April , January , January , Applicability (b) (c) The vehicle parking fees listed in Subsection 7(a),shall be paid by every person parking a vehicle in a public parking lot at the City of Abbotsford Airport, including passengers, meters and greeters, visitors, tenants, sub-tenants, operators, contractors and sub-contractors. Despite Subsection 7(b), a person may park a vehicle displaying: (i) (ii) A valid parking permit issued by the Social Planning and Research Council (SPARC), of British Columbia; or A Veteran's licence plate for one Two-hour Period at no cost. (d) Prices before applicable taxes.

19 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 8 SCHEDULE "A" (continued) 9. Fuel Concession Fees (Based on per litre) (a) Fuel Type Aviation Gasoline Jet Fuel Automotive Gasoline J anuarv % Increase J anuarv 1, % Increase J anuarv 1, Applicability (b) The fuel concession fees listed in subsection (a), above, shall be paid by all airport tenants, sub-tenants and fuel suppliers dispensing fuel on airport lands into aircraft or ground vehicles for purposes of commercial sale, corporate/commercial operation or private use. 10. Loading Bridge Connection Fee J anuarv Connection Fee Per Turn (maximum 1 hour) J anuarv J anuarv Aircraft Emergency Intervention Services (AEIS)'Outside Normal Operating Hours for AEIS Where Aircraft Emergency intervention Services are proved outside normal operating hours for AEIS, the Air Carrier shall be charged for all direct and indirect costs incurred by the Airport. 12. Customer Facility Charge (B/L ) Every person that enters into a rental agreement with an On-Airport Operator and Off Airport Operator to rent a vehicle shall pay to the City a daily customer facility charge of Payment shall be made to the On-Airport Operator or Off-Airport Operator for remittance to the City. 13. Airport Improvement Fee (B/L Unless exempted under Section 14, every person that is an outbound passenger of an air carrier departing from the City of Abbotsford Airport, shall pay to the City an Airport Improvement Fee in the amount of 5.00 for travel within British Columbia, or for travel outside of British Columbia. Payment of the applicable airport improvement fee shall be made to, and collected by, the air carrier for remittance to the City.

20 CITY OF ABBOTSFORD ABBOTSFORD AIRPORT FEE BYLAW, 2004, AMENDMENT BYLAW NO. 11 Bylaw No Page 9 SCHEDULE "A" (continued) 14. Airport Improvement Fee Exceptions No airport improvement fee shall be payable by the following persons: (a) (b) (c) (d) Passengers that continue their journeys less than 12 hours after arrival at the City of Abbotsford Airport (even if multiple air carriers participate in the itinerary on an air carrier ticket); Employees of the air carrier that travel on official company business; Infants under two years of age; and Passengers that travel on industry travel passes, as guests of the airline.