HomeMy WebLinkAboutALLEGIANT AIR LLC - CONTRACT - AGREEMENT MISC - ALLEGIANT AIR LLCAGREEMENT REGARDING ALLEGIANT AIR, LLC SERVICE FROM FORT COLLINS-
LOVELAND MUNICIPAL AIRPORT, TO MESA, ARIZONA
This agreement, made and entered into this day of 2010, is by and between the CITY OF
LOVELAND, COLORADO, a municipal corporation, the CITY OF FORT COLLINS, COLORADO, a
municipal corporation, hereinafter collectively referred to as "the Cities," and ALLEGIANT AIR, LLC, a
Nevada limited liability company, hereinafter referred to as "Allegiant";
WITNESSETH:
WHEREAS, the Cities jointly own and manage certain real property in Larimer County that is the site of
the Fort Collins -Loveland Municipal Airport (the "Airport"); and
WHEREAS, Allegiant and the Cities are parties to an Agreement dated June 16, 2003, as amended by a
First Amendment dated January 19, 2005, both of which are attached hereto as Exhibit A (collectively, the
"2003 Agreement") pertaining to Allegiant's current scheduled airline service to Las Vegas, Nevada (the
"Existing Service"); and
WHEREAS, the Cities have been approached by Allegiant to expand scheduled service into and out of the
Airport beyond the Existing Service currently provided to include two scheduled flights per week of
commercial passenger service from the Airport to Mesa, Arizona (the "Additional Service"); and
WHEREAS, the Cities acknowledge that certain benefits to the Airport and the communities will result
from such Additional Service; and
WHEREAS, the proposed Additional Service is consistent with the Airport's current Master Plan which
forecasted continued commercial service from the early 1990s and well into the future.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and
other good and valuable consideration, the parties hereto agree as follows:
1. Commencement of Scheduled Air Service. Starting no later than . o , Allegiant will begin
providing the Additional Service, to include no less than two scheduled flights per eek of commercial
passenger service from the Airport to Mesa, Arizona using MD 80, 83 and MD 87 aircraft. The Additional
Service shall be provided in addition to the Existing Service currently provided by Allegiant from the Airport to
Las Vegas, Nevada. Once the Additional Service from the Airport has begun, Allegiant may discontinue the
Additional Service at any time. A reduction in the minimum of two flights per week included in the Additional
Service or a discontinuance of the Additional Service within 6 months following commencement shall, at the
Cities' option, relieve the Cities of their obligations under this Agreement.
2. Advertising Costs. The Cities shall reimburse Allegiant for up to $30,000 of the direct costs
Allegiant incurs to third party advertisers before the first scheduled flights included in the Additional Service to
advertise and promote the Additional Service from the Airport. Prior to starting advertising, Allegiant shall
advise the Cities of Allegiant's general advertising plan and the anticipated budget for the period of time from
the start of advertising to the first scheduled flight. The Cities prefer that a portion of the funds be spent with a
third party firm in Northern Colorado. The Cities shall make payment to Allegiant for the amounts provided
herein within thirty (30) days after receipt and approval of invoices submitted by Allegiant, which invoices shall
be submitted to Cities not more frequently than monthly and which shall identify the specific advertising costs
for'which reimbursement is requested.
Assistant City homey
ATT 1ST:
�Ss4 retary
ALLEGIANT AIR, INC.
By:
Title:
Date:
5
FIRST AMENDMENT
THIS AMENDMENT, made and entered into this day of , anu�� , 2005 is by
and between the CITY OF LOVELAND, COLORAD0, a home rule municipality, the
CITY OF FORT COLLINS, COLORADO, a home rule municipality, hereinafter
collectively referred to as "the Cities," and Allegiant Air, LLC, hereinafter referred to as
"Allegiant," WITNESSETH:
WHEREAS the parties entered into an Agreement dated June 13, 2003 where Allegiant
agreed to provide air set -vices at the Fort Collins -Loveland Municipal Airport ("Airport")
in exchange for certain incentives provided by the Cities (the "AGREEMENT");
WHEREAS all parties agree that Allegiant has not exercised its rights or privileges and
that the Cities have not discharged its obligations under section 2 of the original
.AGREEMENT relating to marketing incentives;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, and other good and valuable consideration, the patties hereto agree as follows:
Allegiant agrees to not request for reimbursement monies as described in section 2 in the
aforementioned AGREEMENT and instead agrees to permit the Cities to use such funds
for the construction costs of a bag claim area (hereafter "bag claim project") at the
Airport. The costs of the bag claim project shall be borne solely and exclusively by the
Cities. If the bag claim project costs less than $30,000, then Allegiant shall have the right
to request that the difference between $30,000 and the actual project costs be used for -
other airport improvements to be specified by Allegiant.
All other terms and conditions of the AGREEMENT shall remain in full force and effect.
IN WITNESS WHEREOF, the parties bave hereunto set their hands the day and year
following their signatures.
CL pf Lod "'k, �
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ATTEST:
, l//—
City Clerk
CITY OF LOVEL(ANND, COLORADO
By:c
Title:
Date: 1 — / / as
APPROVED AS TO FORM:
Assistant City Attorney
CITY OF FORT COLL S;, C tORADO
By:
Title:
Date:
ATTEST:
City Cleric
ietIc
AP ED AS� FORM.
A 1. ssis-twA tftyAttorney
ALLEGIANT AIR, LLC
By:
Title:
Date: 1/3,/Ao
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-A!rTFST:
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2 of 2
3. Reimbursement of Advertising Costs. If Allegiant does not begin its Additional Service at the
Airport on or before , Allegiant shall repay to the Cities one-half of all advertising reimbursement
monies previously paid to Allegiant by the Cities (the "Repayment"). Such Repayment shall be made by
Allegiant to the Cities no later than . If Allegiant begins its Additional Service as required in
paragraph one above, and maintains a minimum of two flights per week for the following six months, Allegiant
shall have no further obligation for the Repayment to the Cities. For each full month after Allegiant begins the
Additional Service as required in paragraph one above, and maintains a minimum of two flights per week, the
Repayment shall be reduced by 1/61h. For example, if the Cities reimburse Allegiant for $28,000.00 in direct
costs of third party advertising in accordance with Paragraph 2 above and Allegiant does not begin the
Additional Service at the Airport on or before the required date, it shall pay to the Cities the Repayment in the
entire amount of $28,000.00. If Allegiant begins the Additional Service as required in paragraph one above,
and maintains a minimum of two flights per week for a period of three full months before discontinuing or
reducing the Additional Service, then the Repayment will be reduced by 3/61hs and Allegiant shall pay to the
Cities an amount equal to $14,000
4. Temporary Fee Waivers. During the first six months of Allegiant's Additional Service from the
Airport, the Cities will waive for each flight to Mesa, Arizona (but not for the Existing Service to Las Vegas,
Nevada) the Airport's $50.00 fee for the aircraft rescue and firefighting services and its $50.00 fee for use of the
Airport's terminal. The six-month period identified herein shall commence on the day the first scheduled flight
to Mesa, Arizona departs and end 180 days thereafter.
5. Passenger Waiting Area. The Cities will continue to provide at the Airport the existing enclosed
structure suitable for holding passengers once the passengers are through security screening, which structure is
heated, air-conditioned and lighted, and has adequate seating, a podium for passenger services, a telephone and
restroom facilities.
6. Law Enforcement Costs. Allegiant shall reimburse the Cities for all direct costs the Cities incur
for law enforcement and security personnel required, now and in the future, by the Transportation Safety
Agency ("TSA") to provide security screening for Allegiant's Additional Service, law enforcement officers in
and around the terminal building and security required on the aircraft ramp area and parking lots including
random vehicle inspections, except to the extent that any such costs are reimbursed to the Cities by TSA.
Payments shall be made to the Cities by Allegiant within thirty (30) days of receipt of invoices submitted by the
Cities, which invoices shall be submitted to Allegiant not more frequently than monthly and which shall
identify the specific law enforcement and security costs for which reimbursement is requested.
7. Airport Fees. Allegiant shall pay all applicable airport fees with respect to the Additional
Service as they currently exist and as they may hereafter be increased or decreased by the Cities. These current
fees include a landing fee of $.58 per thousand pounds of aircraft certified gross landing weight and the current
royalty fee collected by the Cities on fuel sold at the Airport.
8. Jet Fuel. Allegiant shall purchase a minimum of 1,000 gallons of jet fuel per flight included in
the Additional Service from the Airport's Fixed Base Operator. This amount may be averaged over the total
number of additional flights included in the Additional Service on a quarterly basis. The quarterly period
(twelve weeks) set forth herein shall being on the first day scheduled flight included in the Additional Service to
Mesa, Arizona departs from the Airport. If Allegiant does not purchase the minimum number of gallons of jet
fuel as set forth herein, Allegiant agrees to pay the Cities five cents ($.05) per gallon of fuel for the remaining
purchase obligation. Such payment shall be made within thirty (30) days from the end of the quarter for which
the payment is owed. Allegiant shall provide documentation to the Cities on a monthly basis showing the
amount of fuel purchased by Allegiant from the Airport's Fixed Base Operator for the Additional Service.
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9. Compliance with applicable laws. At all times during its operations in and out of the Airport
Allegiant shall comply with all applicable federal, state and local laws.
10. Execution Date. The execution date of the Agreement will be the date that this Agreement is
signed by the last of the parties to sign this Agreement.
11. Remedies. In the event that a party breaches its obligations under this Agreement, as determined
by a court of competent jurisdiction, the injured party shall be entitled to monetary damages, equitable relief,
including specific performance, and such other remedies at law or in equity as may be available under
applicable law. In the event of litigation relating to or arising out of the Agreement, the prevailing party,
whether plaintiff or defendant shall be entitled to recover costs and reasonable attorneys' fees.
12. No Waiver. Notwithstanding anything to the contrary, no term or covenant herein shall be
construed or interpreted as a waiver, either express or implied, of any of the immunities, rights, benefits or
protection provided to either of the Cities under the Colorado Governmental Immunity Act, including, without
limitation, any amendments to such statute, or under any similar statute which is subsequently enacted.
13. No Multiple -Fiscal Year Debt. The parties intend that this Agreement comply with the
provisions of Article X, Section 20 of the Constitution of the State of Colorado, and acknowledge that neither of
them will have any obligation to fund the financial obligations under this Agreement other than for the current
fiscal year. No provision of this Agreement shall be construed as creating indebtedness or any multiple -fiscal
year direct or indirect debt or other financial obligation whatsoever by the parties within the meaning of any
constitutional or statutory debt limitation.
14. Assignment of Benefit. Allegiant shall not assign this Agreement to any person without the prior
written consent of the Cities.
15. Severability. If any provision in this Agreement or the application of such provision to any
person or circumstance shall be invalid, illegal or unenforceable, the remainder of this Agreement of the
application of such provision to persons or circumstances other than those to which it is invalid, illegal or
unenforceable shall not be affected thereby.
16. Governing Law and Venue. This Agreement shall be governed by and enforced in accordance
with the laws of the State of Colorado. In addition, the parties hereto acknowledge that there are legal
constraints imposed upon the Cities by the constitutions, statutes, and rules and regulations of the State of
Colorado and of the United States, and imposed upon the Cities by their Charters and Codes, and that, subject to
such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding
any other provisions of this Agreement to the contrary, in no event shall the parties hereto exercise any power or
take any action which shall be prohibited by applicable law. Whenever possible, each provision of this
Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. Venue for
any judicial proceeding concerning this Agreement shall be in the District Court for Larimer County, Colorado.
17. Entire Agreement. This Agreement contains the entire agreement of the parties. relating to the
Additional Service. The Cities shall not be obligated to pay any costs not identified in this Agreement. Any
unforeseen costs required to provide Allegiant's flight operations from the Airport for the Additional Service
shall be paid for by Allegiant. Except as provided herein, the Agreement may not be modified or amended
except by written agreement of the parties.
18. Headings. Paragraph headings used in the Agreement are for convenience of reference and shall
in no way control or affect the meaning or interpretation of any provision of this Agreement.
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19. Notices. All correspondence between the parties shall be directed to the following and shall be
deemed received when hand -delivered or three (3) days after being sent by certified mail, return receipt
requested:
If to Loveland:
Name:
Title:
Address:
If to Fort Collins:
Eckman, Esq.
Name:
Name:_I
Deputy City Attorney
City of Fort Collins
Title:
P.O. Box 580
Fort Collins, CO 80522
Address:"
If to Allegiant:
Name:
Title:
Address:
20. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the
parties' respective successors and assigns.
21. 2003 Agreement. This Agreement sets forth the independent obligations and agreements between
the parties with respect to Allegiant's Additional Service to Mesa, Arizona and shall not be deemed to
terminate, modify or otherwise amend the 2003 Agreement.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year following their
signatures.
ATTEST:
City Clerk
G
SEAL
, PLORPPPO
AS TO FORM:
CITY OF LOVELAND, COLORADO
By:
Title: i,, k �,,,,,� l4 �✓ �.-�.4� 17� rece�
Date: tvr,2! zo �o
CITY OF FORT COLLINS, COLORADO
By v--2, o A
Title: ����L
Date:
AT ST: f\ , 9 SEAL
City Clerk
APPROVE S TO FORM:
Deputy City Attorney
ALLEGIANT AIR, LLC
AT T:
Qecrtart'
AGREEMENT
THIS AGREEMENT, made and entered into this l "- day of ,�z� �� , 2003, is by and
between the CITY OF LOVELAND, COLORADO, a home rule municipality, the CITY OF FORT
COLLINS, COLORADO, a home rile municipality, hereinafter collectively referred to as "the
Cities," and ALLEGIANT AIR, INC., hereinafter referred to as "Allegiant," WITNESSETH:
WHEREAS, the Cities jointly own and manage certain real propertyAin Larimer County that
is the site of the Fort Collins -Loveland Municipal Airport (the "Airport"); and
WHEREAS, the Cities have been approached by Allegiant to start scheduled service into and
out of the Airport; and
WHEREAS, the Cities acknowledge that certain benefits to the Airport and the communities
will result from such service; and
WHEREAS, the proposed scheduled service is consistent with the Airport's current Master
Plan which forecasted continued commercial, service from the early 1990s and well into the future;
and
WHEREAS, the Cities and Allegiant desire to enter into a formal agreement setting forth the
terms and conditions previously addressed in the parties' Letter of Intent, dated May 12, 2003.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, and other good and valuable consideration, the parties hereto agree as follows:
1. . Commencement of Scheduled Air Service. Starting no later than August 14, 2003,
Allegiant will begin providing no less, than four scheduled flights per week of commercial passenger
service from the Airport using MD 83 and/or MD 87 aircraft. Once commercial passenger service
from the Airport has begun, Allegiant may discontinue such service at any time. A reduction in
scheduled flights per week from the above minimum or a discontinuance of service shall, at the
Cities' option, relieve the Cities of their obligations under this Agreement.
12. Advertising Costs. The Cities shall reimburse Allegiant for up to $30,000 of the direct
costs Allegiant incurs to third party advertisers before the first scheduled flights to advertise and
promote the proposed flights from the Airport. Prior to starting advertising, Allegiant shall advise the
Cities of Allegiant's general advertising plan, and the anticipated budget for the period of time from
the start of advertising to the first scheduled flight. The Cities shall make payment to Allegiant for
the amounts provided herein within thirty (30) days of receipt and approval of invoices submitted by
Allegiant, which invoices shall be submitted to Cities not more frequently than monthly and which
shall identify the specific advertising costs for which reimbursement is requested,
3. Reimbursement of Advertising Costs. If Allegiant does not begin its flights at the
Airport on or before August 14, 2003, Allegiant shall repay to the Cities one-half of all advertising
reimbursement monies previously paid to Allegiant by the Cities. Such repayment shall be made by
AI legiant to the Cities no later than September 15, 2003. If Allegiant begins its flights as required in
paragraph one above, and maintains a minimum of four flights per week, Allegiant's reimbursement .
obligation to the Cities shall be reduced in accordance with the following schedule: for each month'
of operations, the reimbursement obligation shall be reduced by one sixth (1 /6`h) of the total amount
owed to the Cities by Allegiant with no reimbursement obligation following six months of continued
operations.
4. Temporary Fee Waivers. During the first six months of Allegiant's proposed service
from the Airport, the Cities will waive for each flight the Airport's $50.00 fee for aircraft rescue and
firefighting services and its $50.00 fee for use of the Airport's terminal. The six-month period
identified herein shall commence on the day of the first scheduled flight and end 180 days thereafter.
5. Passenger Waiting Area. The Cities will provide at the Airport an enclosed structure
suitable for holding passengers once the passengers are through security screening and the structure
will be heated, air-conditioned and lighted. It will also have adequate seating, a podium for
passenger services, a telephone and restroom facilities.
6. Law Enforcement Costs. Allegiant shall reimburse the Cities for all direct costs the
Cities incur for law enforcement and security personnel required, now and in the future, by the
Transportation Safety Agency ("TSA") to provide security screening for Allegiant's Eights, law
enforcement officers in and around the terminal building, and security required on the aircraft ramp
area and parking lots including random vehicle inspections, except to the extent that any such costs
are reimbursed to the Cities by TSA. Payments shall be made to the Cities by Allegiant within thirty
(30) days of receipt of invoices submitted by the Cities, which invoices shall be submitted to
Allegiant not more frequently than monthly and which shall identify the specific law enforcement
____________and security_costs.for_which.reimbursement_is_requested.
7. Airport Fees. Allegiant shall pay all applicable airport fees as they currently exist and
as they may hereafter be increased or decreased by the Cities. These current fees include a landing
fee of $.58 per thousand pounds of aircraft certified gross landing weight and the current royalty fee
collected by the Cities on fuel sold at the Airport.
8. Jet fuel. Allegiant shall purchase a minimum of 1,000 gallons of jet fuel per flight
from the Airport's Fixed Base Operator. This amount may be averaged over the total number of
flights on a quarterly basis. The quarterly period (twelve weeks) set forth herein shall begin on the
first day scheduled flights depart from the Airport. If Allegiant does not purchase the minimum
number of gallons of jet fuel as set forth herein, Allegiant agrees to pay the Cities five cents ($.05)
per gallon of fuel for the, remaining.purchase obligation. Such payment shall be made within thirty
(30) days from the end of the quarter for which the payment is owed. Allegiant shall provide
documentation to the Cities on a monthly basis showing the amount of fuel purchased by Allegiant
from the Airport's Fixed Base Operator.
3. Compliance with applicable laws. At all times during its operations in and out of the
Airport Allegiant shall comply with all applicable federal, state and local laws.
10. Execution Date. The execution date of this Agreement will be the date that this
Agreement is signed by the last of the parties to sign this Agreement.
I l . Remedies. In the event that a party breaches its obligations under this Agreement, as
determined by a court of competent jurisdiction, the injured party shall be entitled to monetary
damages, equitable relief, including specific performance, and such other remedies at law or in
equity as may be available under.applicable law. In the event of litigation relating to or arising out of
this Agreement, the prevailing party, whether plaintiff or defendant, shall be entitled to recover costs
and reasonable attorneys' fees.
12. No Waiver. Notwithstanding anything to the contrary, no term or covenant herein
shall be construed or interpreted as a waiver, either express or implied, of any of the immunities,
rights, benefits or protection provided to either of the Cities under the Colorado Governmental
Immunity Act, including, without limitation, any amendments to such statute, or under any similar
statute which is subsequently enacted.
13. No Multiple -Fiscal Year Debt. The parties intend that this Agreement comply with
the provisions of Article X, Section 20 of the Constitution of the State of Colorado, and acknowledge
that neither of them will have any obligation to fund the financial obligations under this Agreement
other than for the current fiscal year. No provision of this Agreement shall be construed as creating
indebtedness or any multiple -fiscal year direct or indirect debt or other financial obligation
whatsoever by the parties within the meaning of any constitutional or statutory debt limitation.
14. Assignment of Benefit. Allegiant may not assign this Agreement to any person
without the express written consent of the Cities.
15. Severability. If any provision in this Agreement or the application of such provision to
any person or circumstance shall be invalid, illegal, or unenforceable, the remainder of this
Agreement -of the application -of such provision to persons or -circumstances other -than those to which -
it is invalid, illegal, or unenforceable shall not be affected thereby.
16. Governing Law and Venue. This Agreement shall be governed by the laws of the
State of Colorado, and venue for any legal action arising under this Agreement shall be in the County
of Larimer, State of Colorado.
17. Entire Afeement. This Agreement contains the entire agreement of the parties
relating to the subject matter hereof. The Cities shall not be obligated to pay any costs not identified
in this Agreement_ Any unforeseen costs required to provide Allegiant's flight operations from the
Airport shall be paid for by Allegiant_ Except as provided herein, the Agreement may not be
modified or amended except by written agreement of the parties.
18. Headings. Paragraph headings used in this Agreement are for convenience of
reference and shall in no way control or affect the meaning or interpretation of any provision of this
Agreement.
19. Notices. All correspondence between the parties shall be directed to the following
and shall be deemed received when hand -delivered or three (3) days after being sent by certified
mail, return receipt requested:
If to Loveland: Name:
Title: C, N(iU,rc� c .czr
Address: 0.0 E - _� ; rsA- S*-f Pk
Loveland, CO 80537
If to Fort Collins: Name:
sc-�bc'-C
Title:
Address:
���, Lam,.. e
Fort Collins, CO 80_5 1
If to Allegiarnt: Name:
G
Title:
Address:q
c v.gd
20. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of
the parties' respective successors and assigns.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year
following their signatures.
CITY OF LOVELAND, COLORADO
A Title:
SEA Date:
APPROVED )AS TO FORM:
Assistant City Attorney
APPROVED AS TO FORM:
J
CITY OF FORT COLLINS, COLORADO
By:
Title
Date
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