Okaloosa County BOCC — September 20, 2016 — Signatory Airline Operating Agreements — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 20, 2016 TO: Honorable Chairman and Members of the Board FROM: Tracy Stage SUBJECT: Signatory Airline Operating Agreements DEPARTMENT: Airport BCC DISTRICT: 2 STATEMENT OF ISSUE: The Airports Department requests the Board of County Commissioners' approval of the new Signatory Airline Operating Agreement and Terminal Building Leases at the Destin - Fort Walton Beach Airport (VPS). BACKGROUND: The current Signatory Airline Operating Agreement and Terminal Building Leases for all airlines operating at VPS expire on September 30, 2016. Airport Staff have come to terms with all six (6) signatory airlines to include Delta Air Lines, Inc., American Airlines, Inc., United Airlines, Inc., Allegiant Air, LLC, Glo Airlines and Contour Airlines, to operate at the Destin-Fort Walton Beach Airport. The terms and structure were extensively negotiated over a period of one (1) year which resulted in a simplified rate structure with the majority of the charges on a per-enplaned passenger basis as outlined in Exhibit E. The agreements will be effective on October 1, 2016 for five (5) years with the option to extend for an additional five (5) years. Each agreement is one hundred (100) pages and contains Exhibits A-G. American Airlines and United Airlines signed agreements did not make this agenda cutoff and will be submitted to the Board in October with a request to retroactively approve to September 30, 2016. The contract and lease internal coordination are attached along with each airline’s certificate of insurance. OPTIONS: Approve, Reject or Table RECOMMENDATIONS: It is Staff's recommendation that the Board approve each of the Signatory Airline Operating Agreement and Terminal Building Leases for Delta Air Lines, Inc., Allegiant Air, LLC, Glo Airlines and Contour Airlines. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator