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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: August 20, 2013
TO: Honorable Chairman and Members of the Board
FROM: Sunil Harman
SUBJECT: First Amendment to American Airlines Lease & Operating Agreement
DEPARTMENT: Airport
BCC DISTRICT: All
STATEMENT OF ISSUE: The Board of County Commissioners is requested to approve the
First Amendment to American Airlines' Lease and Operating Agreement.
BACKGROUND: Airline Leases and Operating Agreements expire September 30, 2013.
Rather than prepare a new agreement, since the current agreement was authorized and entered
into on April 11, 2011 (retroactive to October 1, 2010), the airlines have agreed, by an
amendment, to a three-year extension to September 30, 2016. In addition to the extension,
certain modifications to the Indemnification and Environmental sections of the lease have been
made. American has signed and returned the proposed amendment. Likewise, Delta has returned
its extension to be approved at this meeting. Although the other airlines have agreed to the
extension, their coordination process has been extensive due to recent mergers between
United/Continental and American/US Airways, and the County has not received executed
amendments back from US Airways and United. We anticipate receiving their amendments
prior to September 1, 2013, at which time we will submit them for Board approval. In addition
to the extension, the airlines have requested some clarification to the indemnification provisions
of the basic agreement specifically relating to environmental issues. We also have added
definitions of environmental terms which were capitalized in the basic agreement, but were not
defined. Lastly, the amendment contains an Endorsement No. 1 in which the County agrees to
cooperate with American and US Airways in good faith to assist in certain listed
accommodations during their consolidation.
OPTIONS: Approve, Table or Disapprove.
RECOMMENDATIONS: Staff recommends approval of American Airlines' First Amendment
including Endorsement No. 1, the indemnification clarifications and defined terms.
RECOMMENDED BY:
APPROVED BY:
Ernie Padgett, County Administrator