Okaloosa County BOCC — November 4, 2012 — Action Item Printout

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: December 18, 2012 TO: Honorable Chairman and Members of the Board FROM: Greg Donovan SUBJECT: Legal Action Against Vision Airlines for Non-Payment DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: Vision Airlines is delinquent in paying Okaloosa County $146,973.70 from previous operations at the Northwest Florida Regional Airport (VPS) and has not been responsive to recent collection attempts. A deadline of December 31, 2012 has been communicated to the airline seeking resolution or guarantee of a payment plan to satisfy the debt. Airport staff is seeking authorization to proceed with legal actions if the airline is unresponsive. BACKGROUND: Vision Airlines is delinquent in paying Okaloosa County $146,973.70 from previous operations at the Northwest Florida Regional Airport (VPS) and has not been responsive to recent collection attempts. The airline entered into a signatory airline operating agreement and terminal building lease with Okaloosa County in 2011 and has a fiduciary responsibility to pay this expense per the contractual agreement. The amount owed has been verified and has been repeatedly communicated to the airline. Of this amount, $117,659.98 is for Passenger Facility Charges (PFC) collected from passengers on behalf of the airport, $9,042.92 is for fuel consumed by airline ground support equipment, and $20,270.80 is for other station expenses such as employee backgrounds, ticket stock, and penalties for unreturned credentials. The airport has cooperatively offered to resolve Vision Airlines’ indebtedness by allowing incremental payments, however; this accommodation has reached a stalemate. The company CFO agreed to pay $25,000 a week, but a few payments quickly became sporadic and no payments have been received since July 23, 2012. By federal statute, PFC funds are the undisputed property of the airport to be held in trust by the airline. Vision Airlines has been given a deadline of December 31, 2012 to provide payment or guarantee a payment plan. If resolution is not achieved by this date, airport staff regrettably requests the Board of County Commissioners authorize legal counsel to pursue recovery of the County’s PFC property and other sums owed plus interest, penalties and attorney fees as defined within the operating agreement by seeking judgment in court. OPTIONS: Approve, Table, Modify, Reject RECOMMENDATIONS: Authorize airports director to work with the county attorney and contractual attorneys in filing legal action to collect Vision Airlines debt if not resolved by December 31, 2012. RECOMMENDED BY: APPROVED BY: James D. Curry, County Administrator