(a) As used in
subsection (i) of this section for the purpose of determining the rents, fees
and charges to be paid by all
Air Carriers under the Short Term Lease at
Bradley International Airport effective July 1, 2011, the following definitions
apply:
(1) "Air Carrier" means an entity
engaged in the business of providing air transportation of persons or property
for compensation or hire that has been issued the proper air carrier operating
certificate by the US Department of Transportation, Federal Aviation
Administration.
(2) "Airfield Area"
means those portions of Bradley International Airport, and related facilities,
exclusive of the Terminal Building, Apron Area, hangars, hangar ramps, cargo
buildings, cargo ramps, buildings and building areas (other than the crash,
fire and rescue building and the control tower), all as more fully delineated
in the most current approved Airport Master Plan or Airport Layout
Plan.
(3) "Airport Audit" means the
audited annual financial statements of Bradley International Airport required,
under the terms of the Indenture and applicable State law, to be audited by a
firm of independent certified public accountants of recognized standing
selected by the State, prepared in accordance with applicable State law and
relevant accounting standards, and to be completed within 120 days of the end
of each Airport Fiscal Year.
(4)
"Airport Fiscal Year" means the twelve (12) month period commencing on July 1
of each year and expiring on June 30 of the following calendar year or such
other period as designated by the Commissioner of Transportation.
(5) "Airport Operating Budget" means the
budget of Bradley International Airport costs and expenses adopted, with
respect to each Airport Fiscal Year pursuant to the Indenture and Chapter 266
of the Connecticut General Statutes and shall consist of the Operating Expense
Budget and the Capital Improvement Budget.
(6) "Annual Debt Service" means the sum of
principal, amortization requirements (including premium, if any) and interest
payments being or becoming due and payable by the state during any Airport
Fiscal Year with respect to the Bonds including debt service coverage required
pursuant to applicable provisions of the Indenture. The amount of coverage
Properly Allocable shall be equivalent to ten percent (10%) of budgeted Air
Carrier revenues from Terminal Building Rentals, Landing Fees, Baggage Claim
Area Charges and Apron Rent determined in accordance with subdivisions (3)
through (6) of subsection (i) of this section.
(7) "Apron Area" means the aircraft parking
and maneuvering areas adjacent to the Terminal Building as designated by the
Commissioner of Transportation. The term Apron Area shall not include areas
associated with Terminal Building(s), or portions thereof, which have been
decommissioned by the Commissioner of Transportation in anticipation of
demolition pursuant to the Capital Improvement Program.
(8) "Apron Area Rentals" means the rental
fees imposed on the Signatory Airlines with respect to their use of the Apron
Area as provided in subdivision (6) of subsection (i) of this
section.
(9) "Baggage Claim Areas"
means those portions of the Terminal Building and related facilities as
designated by the Commissioner of Transportation providing for the collection,
transport, handling and distribution of passenger baggage and related
items.
(10) "Baggage Claim Area
Charges" means the charges imposed on the Signatory Airlines with respect to
their use of the Baggage Claim Areas as provided in subdivision (5) of
subsection (i) of this section.
(11) "Bonds" means all debt obligations of
the State of Connecticut, or of any agency, authority, commission or
subdivision thereof, or of any public or private corporation, issued to finance
(or issued to refund other obligations issued to finance) (A) the Construction
Costs of the Capital Improvement Program, and (B) the Construction Costs of
other Capital Improvements authorized by the State, including all outstanding
Bradley International Airport General Airport Revenue Bonds including Series
2001A, Series 2001B and Series 2004 bonds and such additional General Airport
Revenue Bonds and related financing agreements the State may issue or enter
into in support of the Capital Improvement Program.
(12) "Capital Improvement" means for any
Airport Fiscal Year, (A) any item purchased or constructed for use in the
Airfield Area Cost Center or Apron Area Cost Center which has a useful life of
five (5) years or more, or which can extend the useful life of any existing
asset included within the Airfield Area Cost Center or Apron Area Cost Center
for a period of five (5) years or more, and (B) any item purchased or
constructed for use in the Terminal Building Cost Center which has a useful
life of three (3) years or more, or which can extend the useful life of any
existing asset included within the Terminal Building Cost Center for a period
of three (3) years or more. The Construction Costs incurred with respect to the
Capital Improvements shall be capitalized and thereafter amortized as Operating
Expenses over the useful life of the items purchased or constructed.
(13) "Capital Improvement Budget" means the
portion of the Airport Operating Budget reflecting Capital Improvement costs to
be expensed during an Airport Fiscal Year, adopted in conjunction with the
Airport Operating Budget for such Airport Fiscal Year.
(14) "Capital Improvement Program" means
those expansions, improvements and renovations to the Bradley International
Airport described in the most recent Airport Master Plan or Master Plan
Update.
(15) "Construction Costs"
means the necessary and desirable costs and expenses pertaining or incident to
the acquisition or construction of Capital Improvements, including all costs
and expenses of the Capital Improvement Program.
(16) "Cost Accounting System" means any
accounting and financial management system(s) used by the State to allocate
Bradley International Airport operating expenses, depreciation and
amortization, and debt service to the Airport's Landing Area, Terminal Area and
Apron Area cost centers including the collection, allocation and reporting of
the capital expenditures, revenues, operating expenses, assets and liabilities
of the State with respect to the Airport and its operations. The Cost
Accounting System shall be established and operated pursuant to generally
accepted accounting principles consistently applied.
(17) "Cost Center" means any one of the
Bradley International Airport cost areas identified in connection with the Cost
Accounting System.
(18) "Gross
Space" means all space within the Terminal Building, including but not limited
to all leased, leasable and unassigned space and all public space. The extent
of such space shall be determined utilizing "as built" drawings and physical
measurements taken from inside dimensions of the exterior walls of the Terminal
Building. The term Gross Space shall not include areas associated with Terminal
Building(s), or portions thereof, which have been decommissioned by the
Commissioner of Transportation in anticipation of demolition pursuant to the
Capital Improvement Program.
(19)
"Indenture" means the Trust Indenture Between State of Connecticut and State
Street Bank and Trust Company (or its successor) as Trustee Dated as of March
1, 2001 relating to State of Connecticut Bradley International Airport General
Airport Revenue Bonds, or such supplemental, replacement or additional
indentures or related financing agreements as the State may enter into in
undertaking the Capital Improvement Program or refunding the Bonds.
(20) "Landing Fees" means the fees imposed on
the Signatory Airlines, Air Carriers and Users with respect to the operation of
the Airfield Area, as provided in subdivision (4) of subsection (i) of this
section, and based upon the Landing Fee coefficient, frequency factor and
weight factor as described in such subdivision (4) of subsection (i) of this
section.
(21)
"Majority-in-Interest" as of any date means at least fifty percent (50%) in
number of the Signatory Airlines which account for more than fifty percent
(50%) of aggregate Revenue Aircraft Arrival weight landed at the Airport during
the immediately preceding calendar year.
(22) "Maximum Landing Weight" means the
maximum certified landing weight approved by the Federal Aviation
Administration in accordance with
14 CFR
21 for aircraft landing at the
Airport.
(23) "Operating Expense
Budget" means the budget of Operating Expenses for an Airport Fiscal Year
adopted in conjunction with the Airport Operating Budget, all as provided in
subdivision (13) of subsection (i) of this section.
(24) "Operating Expenses" means the
reasonable, necessary and verifiable current expenses of the state, paid or
accrued in accordance with the Cost Accounting System in administering,
operating, securing, maintaining, and repairing Bradley International Airport.
Without limiting the generality of the foregoing, the term Operating Expenses
shall include (A) costs of collecting Bradley International Airport revenues
and of making any refunds therefrom lawfully due others; (B) engineering, audit
reports, legal and other overhead expenses directly related to the
administration, operation, maintenance and repair of the Bradley International
Airport; (C) costs of salaries, wages and other compensation of officers and
employees with respect to Bradley International Airport, including all legally
required payments to pension, retirement, health and hospitalization funds and
other insurance, including self-insurance, if any, for the foregoing; (D) costs
of routine maintenance, repairs, replacements, renewals and alterations not
constituting Capital Improvements occurring in the usual course of business,
which may include expenses not annually recurring; (E) taxes, assessments and
other governmental charges, or payments in lieu thereof, lawfully imposed on
Bradley International Airport or any part thereof or on the operation thereof,
subject to any right the Airline may have to protest the same; (F) costs of
utility services; (G) the costs and expenses of management services and general
administrative overhead of the State allocable to Bradley International
Airport; (H) costs of equipment, materials and supplies used in the ordinary
course of Bradley International Airport business not constituting Capital
Improvements, including ordinary and current rentals of equipment or other
property; (I) costs of fidelity bonds, or a properly allocable share of the
premium of any blanket bond, directly pertaining to Bradley International
Airport its revenues or any other moneys held under the Indenture, as amended
or supplemented from time to time, or required to be held or deposited
thereunder; (J) costs of carrying out the provisions of the Indenture, as
amended or supplemented from time to time to permit the acquisition and
construction of Capital Improvements or the Capital Improvement Program,
including trustee's and paying agent's fees and expenses, costs of insurance
required thereby, or a properly allocable share of any premium of any blanket
policy pertaining to the Airport or Airport revenues, and costs of recording,
mailing and publication; (K) Annual Debt Service; (L) all other costs and
expenses of administering, operating, maintaining and repairing the Airport
arising in the routine and normal course of business including depreciation and
amortization of Capital Improvements not funded with Bonds; (M) any costs and
expenses related to the Airport required to be paid (and reserves required to
be kept) in accordance with the Cost Accounting System; and (N) any other cost
or expense permissible by applicable law, agreement or regulation. Operating
Expenses shall not include depreciation on those facilities financed with Bonds
or capital contributions.
(25)
"Preferential Use Agreement" means an agreement between the State Department of
Transportation and an Air Carrier providing for the use and occupancy of
terminal and related areas at Bradley International Airport that distinguishes
areas that may be used exclusively by such Air Carrier from areas that may be
used on a preferred or common use basis with other Air Carriers.
(26) "Properly Allocable" or "Allocable"
means properly allocable in accordance with the Cost Accounting
System.
(27) "Revenue Aircraft
Arrival" means the landing at the Airport of any and all aircraft owned, leased
or operated by any Air Carrier or airline, that arrives at or departs from the
Bradley International Airport with passengers, cargo or mail, including without
limitation, all sightseeing trips, but specifically excluding (A) ferry, test,
courtesy and inspection flights as permitted herein, for which no monetary
consideration has been, shall be or should be received by the Air Carrier in
connection therewith, (B) re-arrivals of aircraft of anyone including the
Signatory Airlines that, having previously departed from Bradley International
Airport, have returned to Bradley International Airport for emergency or
precautionary reasons, and (C) training flights; provided, however, that to the
extent that the number of training flights operated by an Air Carrier during
any calendar year exceeds five percent (5%) of the total number of Revenue
Aircraft Arrivals of such Air Carrier during such calendar year, such excess
shall be treated as Revenue Aircraft Arrivals.
(28) "Short Term Lease" means month to month
term lease agreement between the state, through the Department of
Transportation, and Air Carrier providing for the use and occupancy of the
Airfield Area, Terminal Building and Apron Areas at Bradley International
Airport.
(29) "Signatory Airlines"
means all certificated Air Carriers providing scheduled passenger service at
the Airport and occupying space within the Terminal Building under Short Term
Leases or as subtenants thereof, and all air cargo carriers with direct
agreements with the State Department of Transportation providing for the
development and use of cargo facilities at Bradley International Airport and
subtenants thereof.
(30) "Terminal
Building" means the Airport Terminal Building as it now exists and as it
hereafter may be enlarged, improved or renovated, all as more fully described
in the Airport Master Plan.
(31)
"Terminal Building Rentals" means the rental fees imposed on the Signatory
Airlines with respect to their use of Terminal Building facilities, as provided
in subdivision (3) of subsection (i) of this section.
(32) "User" means with respect to Bradley
International Airport facilities, any Signatory Airline and any other person or
entity having the right to utilize such facilities by virtue of applicable law,
regulation, a lease or other arrangement, but shall not include passengers,
patrons, visitors or guests.
(i)
Rates and Charges for use of
Bradley International Airport effective July 1, 2011.
(1) The State shall not consent to a hold
over tenancy of any Air Carrier under the terms of the Air Carrier Operating
Agreement between the State and certain Signatory Airlines expiring June 30,
2011 (Signatory Agreement). Effective July 1, 2011, each Air Carrier providing
scheduled passenger service at Bradley International Airport shall be permitted
to enter into short term (month to month) lease agreements with the State,
through its Department of Transportation, providing for the use and occupancy
of the Airfield Area, Terminal Building and Apron Areas it occupies as of that
date, or at the discretion of the Commissioner of Transportation, such other
areas designated by the Commissioner of Transportation, hereinafter the "Short
Term Lease". The rents, fees and charges due under such Short Term Lease shall
be as set forth in subsection (i) of this section, and such rents, fees and
charges, and budget development procedures set forth in subdivision (12) and
(13) of subsection (i) shall remain in effect until such time as the State and
the Air Carriers agree to terms, including appropriate rents, fees and charges
for said areas, and execute new Preferential Use Agreements.
(2) Air Carriers providing scheduled
passenger service at Bradley International Airport pursuant to the Short Term
Lease shall pay the Terminal Building Rentals, Landing Fees, Baggage Claim Area
Charges, Apron Area Rentals, Jet Bridge, Baggage Conveyor and Tenant Fit Out
charges set forth below. Upon execution of the Preferential Use Agreements to
include Terminal Building Rentals, Landing Fees, Baggage Claim Area Charges,
Apron Area Rentals, Jet Bridge, Baggage Conveyor and Tenant Fit Out charges,
said Preferential Use Agreements shall be controlling and subsection (i) of
this section shall have no force or effect.
(3) Terminal Building Rentals.
(A) In establishing Terminal Building Rentals
with respect to each Airport Fiscal Year, the State shall divide Gross Space
into total budgeted Operating Expenses Properly Allocable to the Terminal
Building Cost Center for such year, and the resulting value shall be multiplied
by a factor of 1.10 to determine a cost per square foot of Gross Space in the
Terminal Building, provided, however, that the rate for major functional
sub-components of the Terminal Building including, but not limited to unit
terminals, concourses, gate areas and areas occupied exclusively by the
Signatory Airlines, as determined by the Commissioner of Transportation, may
include the Annual Debt Service incurred with respect to the Construction Cost
of such sub-components as determined by the Commissioner of Transportation and
provided further that Annual Debt Service incurred with respect to the
Construction Cost of such sub-components as may be decommissioned by the
Commissioner of Transportation in anticipation of demolition pursuant to the
Capital Improvement Program shall be Properly Allocable to the sub-components
that remain in use. The applicable cost per square foot so calculated shall be
multiplied by the total Terminal Building space to be occupied and used by each
Signatory Airline during such year in order to determine the Terminal Building
Rentals due from each Signatory Airline.
(B) Effective July 1, 2011, any Air Carrier
or User that has a written agreement with the State Department of
Transportation referring to the Signatory Agreement as the basis upon which
terminal building rental rates are computed under the terms of such agreement
shall pay the Terminal Building Rentals in accordance with subdivision (1) of
subsection (i).
(4)
Landing Fees.
(A) The Landing Fees payable by
each Signatory Airline shall be determined by multiplying the Landing Fee
coefficient defined below for the then current Airport Fiscal Year times the
Signatory Airline's total landed weight at Bradley International Airport (i.e.,
the total Revenue Aircraft Arrivals times Maximum Landing Weight for each such
arrival). The Landing Fee coefficient for each Airport Fiscal Year shall be
calculated as follows, based on the estimated figures included in the Airport
Operating Budget for such Airport Fiscal Year:
(i) Total aircraft arrivals for all Signatory
Airlines shall be stated as a percentage of total aircraft arrivals for all
Users of the Airport (the "frequency factor");
(ii) Total gross landed weight (i.e., total
aircraft arrivals times Maximum Landing Weight for each such arrival) for all
Signatory Airlines shall be stated as a percentage of total gross landed weight
for all Users of the Airport (the "weight factor");
(iii) The total costs and expenses properly
allocable to the Airfield Area Cost Center under the Airport Operating Budget
shall be multiplied by the expression [.35 x weight factor + .65 x frequency
factor], to arrive at the Signatory Airlines' total share of such costs and
expenses Allocable Cost");
(iv) The
allocable cost shall be divided by the total landed weight for all Signatory
Airlines and the resulting value multiplied by a factor of 1.10 to arrive at
the Landing Fee coefficient.
(B) Mid Year Adjustment Provision. If, in any
Airport Fiscal Year, actual Landing Fees received shall be at least 10% lower
than the amount budgeted therefore for the period ending October
31st, then the Commissioner shall adjust the Landing
Fee coefficient determined above by such amount as may be necessary to correct
such shortfall in Landing Fees. Any adjusted Landing Fee coefficient shall be
effective as of January 1st during such fiscal
year.
(C) Itinerant Landing Fees.
Unless otherwise stated in a written agreement with the State Department of
Transportation, all Air Carriers and Users that are not Signatory Airlines
shall pay Itinerant Landing Fees. Itinerant Landing Fees shall be established
at Bradley International Airport for those Air Carriers which do not have Short
Term Leases or Preferential Use Agreements with the State Department of
Transportation. Itinerant Landing Fees shall be levied at a 60% higher rate
than the rates set forth in subdivision (4) of subsection (i) of this
section.
(D) Effective July 1,
2011, any Air Carrier or User that has a written agreement with the State
Department of Transportation referring to the Signatory Agreement as the basis
upon which landing fees are computed under the terms of such agreement shall
pay the applicable landing fee in accordance with subdivision (4) of subsection
(i) of this section.
(5)
Baggage Claim Area Charges. The total Baggage Claim Area Charges for each
Baggage Claim Area shall be determined by multiplying the total square footage
of such Baggage Claim Area times the cost per square foot of Gross Space
calculated pursuant to subdivision (3) of subsection (i) Each Signatory Airline
shall be responsible for a share of such costs allocable to each Baggage Claim
Area which it utilizes based on the following formula: Twenty percent (20%) of
the total costs allocable to each such Baggage Claim Area shall be divided
equally among all Users of such Baggage Claim Area and the remaining eighty
percent (80%) of such costs shall be allocated to such Users in proportion to
the number of enplaning passengers attributable to each User as a percentage of
the total number of enplaning passengers attributable to all Users, for the
preceding month.
(6) Apron Area
Rentals. In establishing Apron Area Rental rates with respect to each Airport
Fiscal Year, the state shall divide the total linear feet of the Apron Area,
measured along a line located one hundred feet (100') perpendicularly from the
face of the Terminal Building, into the total Operating Expenses properly
allocable to the Apron Area Cost Center for such Airport Fiscal Year, and the
resulting value shall be multiplied by a factor of 1.10 to determine a cost per
linear foot of Apron Area space. Annual Debt Service incurred with respect to
the Construction Cost of Apron Area decommissioned by the Commissioner of
Transportation in anticipation of demolition pursuant to the Capital
Improvement Program shall be Properly Allocable to the Apron Area that remains
in use. The cost per linear foot so calculated shall be multiplied by the total
linear feet of Apron Area to be used by each Signatory Airline during such
Airport Fiscal Year.
(7) Jet Bridge
Charges. Each Signatory Airline occupying a jet bridge funded by the Airport's
Series 2001 A General Airport Revenue Bonds shall pay to the State a Properly
Allocable share of the debt service payments associated with such Series 2001 A
General Airport Revenue Bonds ("Jet Bridge Charges"). Unless otherwise agreed
in writing between the Commissioner of Transportation and a Signatory Airline,
in establishing the annual Jet Bridge Charges, the state shall divide the total
debt service Properly Allocable to the cost of acquiring and installing such
jet bridges over the term of the Series 2001 A Bonds by a thirteen (13) year
term for the collection of such debt service, the annual charge so calculated
to remain in effect until such total debt service payments have been fully
collected. In addition to such Jet Bridge Charges, each Signatory Airline shall
pay the direct cost of electric service provided to all jet bridges at the
Airport and the direct cost of all repair and maintenance service provided by
the Airport for such jet bridges ("additional Jet Bridge Charges").
(8) Baggage Conveyor Charges. Each Signatory
Airline using the baggage conveyor system funded by the Airport's Series 2001 A
General Airport Revenue Bonds shall pay to the state a Properly Allocable share
of the debt service payments associated with such Series 2001 A General Airport
Revenue Bonds ("Baggage Conveyor Charges"). Unless otherwise agreed in writing
between the Commissioner of Transportation and a Signatory Airline, in
establishing the total annual Baggage Conveyor Charges, the state shall divide
the total debt service payments Properly Allocable to the cost of acquiring and
installing the baggage conveyor systems due over the term of the Series 2001 A
Bonds by a thirteen (13) year term for the collection of such debt service, the
annual charge so calculated to remain in effect until such total debt service
payments have been fully collected. Each Signatory Airline shall be responsible
for a share of such total Baggage Conveyor Charges based on the formula
outlined in subdivision (5) of subsection (i) In addition to such Baggage
Conveyor Charges, each Signatory Airline shall pay its proportionate share,
based on the formula outlined in subdivision (5) of subsection (i), of the
direct cost of all repair and maintenance service provided by the Bradley
International Airport for baggage conveyor systems ("additional Baggage
Conveyor Charges").
(9) Tenant Fit
Out Charges. Each Signatory Airline occupying exclusive space, the finish and
fit out of which was funded by Bradley International Airport's Series 2001A
General Airport Revenue Bonds, shall pay to the state a Properly Allocable
share of the debt service payments associated with such Series 2001A General
Airport Revenue Bonds ("Tenant Fit Out Charges"). Unless otherwise agreed in
writing between the Commissioner of Transportation and a Signatory Airline, in
establishing the annual Tenant Fit Out Charges, the state shall divide the
total debt service payments Properly Allocable to the cost of such finish and
fit out work due over the term of the Series 2001 A Bonds by a fifteen (15)
year term for the collection of such debt service, the annual charge so
calculated to remain in effect until such total debt service payments have been
fully collected.
(10) Monthly
Payments and Reports.
(A) Each Signatory
Airline shall pay to the state on the first (1st) day of each month in advance
the Terminal Building Rentals, Apron Area Rentals, Jet Bridge Charges and
Tenant Fit Out Charges payable to the State, in an amount equal to one-twelfth
(1/12) of its annual charge for the current Airport Fiscal Year.
(B) Each Signatory Airline shall pay to the
State on the fifteenth (15) day of each month, in arrears, the preceding
month's Landing Fees. Such landing fee payment shall be transmitted along with
a report including (i) the Revenue Aircraft Arrivals by type of aircraft and
(ii) the number of enplaning passengers, for such preceding month. In addition,
not less than one hundred and twenty (120) days prior to the commencement of
each Airport Fiscal Year, each Signatory Airline shall provide the State with
an estimate of its total landed weight for the next ensuing Airport Fiscal
Year.
(C) Each Signatory Airline
shall pay to the State, upon invoicing by the state each month in arrears, the
preceding month's Baggage Claim Area Charges, Baggage Conveyor Charges and
additional Baggage Conveyor Charges. Said charge shall be computed by the state
based on the number of enplaning passengers included in each Signatory
Airline's monthly report required under subparagraph (B) of subdivision (10) of
subsection (i) of this section. In the event that figures as to the number of
enplaning passengers for any month are unavailable then the state may compute
the Baggage Claim Area Charges, Baggage Conveyor Charges and additional Baggage
Conveyor Charges based on the number of enplaning passengers for the most
recent month for which certified figures are available.
(D) Each Signatory Airline shall pay to the
state, upon invoicing by the state each month in arrears, the preceding month's
additional Jet Bridge Charges.
(E)
Acceptance of any payment due to the state shall not preclude the state from
questioning the accuracy of any data submitted by any Signatory Airline. The
state shall be entitled, upon reasonable notice, to examine that portion of the
books and records of any Signatory Airline as is relevant for the purpose of
ascertaining the correctness of the amount paid or to be paid to the
state.
(F) If any Signatory Airline
shall fail to make any payment due not less than thirty (30) days after the
date due and payable, then a late penalty at the rate of one and one-half
percent (1 1/2%) per month for any month or part of a month shall be due and
payable on the amount in arrears. Payments received when an arrearage exists
shall be applied first to payment of the late penalty imposed under
subparagraph (F) of subdivision (10) of subsection (i) of this section, then to
payment of arrearages, and finally to the payment of current
obligations.
(G) Each Signatory
Airline shall make all payments to the state by check made payable to the
"Treasurer, State of Connecticut" and addressed to the Connecticut Department
of Transportation, Bureau of Finance & Administration, Revenue Accounting,
Aviation & Ports, 2800 Berlin Turnpike, PO Box 317546, Newington,
Connecticut 06131-7546.
(11) Annual Carry Forward of Expense
Surpluses and Deficits. If in any Airport Fiscal Year the state shall fail
through the imposition of the rates, rents, fees and charges provided for
hereunder to recover the full amount of the actual Operating Expenses Properly
Allocable to the Signatory Airlines during such Airport Fiscal Year on account
of their use of the facilities of Bradley International Airport, then the state
shall be entitled to carry forward the amount of this deficit as an additional
item of allocable cost in computing the schedule of rates, rents, fees and
charges for the Airport Fiscal Year following the Airport Fiscal Year during
which the final Airport Audit is received which reflects such deficit.
Conversely, if in any Airport Fiscal Year the state shall recover through the
imposition of the rates, rents, fees and charges provided for hereunder actual
revenues exceeding the full amount of the actual Operating Expenses properly
allocable to the Signatory Airlines during such Airport Fiscal Year on account
of their use of the facilities of Bradley International Airport, then the state
shall be required to carry forward the amount of this surplus as an offset to
allocable costs in computing the schedule of rates, rents, fees and charges for
the Airport Fiscal Year following the Airport Fiscal Year during which the
final Airport Audit is received which reflects such surplus.
(12) Capital Improvements Subject to
Majority-in-Interest Approval.
(A) Subject to
the provisions of Section 15-101nn of the General Statutes, the state may take
into account all Properly Allocable costs and expenses incurred in effecting
Capital Improvements at the Bradley International Airport in determining the
schedule of rates, rents, fees and charges applicable to the Signatory
Airlines; provided, however, that no such cost or expense shall be charged to
the Signatory Airlines unless such Capital Improvements are approved as part of
the procedure for Adoption of Airport Operating Budget outlined in subdivision
13 of subsection (i) of this section. The state shall provide formal
notification of proposed Capital Improvements including a description of such
proposed Capital Improvement (including preliminary drawings and cost
estimates), a brief statement of the need for such expenditure, the allocation
of the Construction Cost of such Capital Improvement to the various Cost
Centers, and a projection of the impact of such Capital Improvement on the
rates, rents, fees and charges assessed to the Signatory Airlines. The
following shall not be subject to approval by the Signatory Airlines:
(i) Capital Improvements included in the
approved Capital Improvement Program;
(ii) Capital Improvements required by law,
including without limitation public safety improvements required by (1) the FAA
or (2) any similar governmental authority having jurisdiction over the
operations of the Airlines or over the safety aspects of airports
generally;
(iii) The repair and
rehabilitation of existing Airport property including casualty damage to
Airport property;
(iv) When
requested by a Signatory Airline or by a financially responsible third party, a
special facility which such Signatory Airline or third party has agreed in
writing to lease from the state and with respect to which such Signatory
Airline or third party shall pay rentals to the State sufficient to permit the
special facility to be acquired, constructed, renovated, remodeled,
administered, operated, maintained and repaired without affecting the Operating
Expenses allocable to the Signatory Airlines;
(v) Any Capital Improvement to the Airfield
Area Cost Center and Apron Area Cost Center, not included in the then
applicable Airport Operating Budget, the cost of which does not exceed
$250,000, provided that the aggregate cost of Capital Improvements undertaken
pursuant to this subparagraph shall not exceed $500,000 in any Airport Fiscal
Year;
(vi) Any Capital Improvement
to the Terminal Building Cost Center, not included in the then applicable
Airport Operating Budget, the cost of which does not exceed $75,000, provided
that the aggregate cost of Capital Improvements undertaken pursuant to this
subparagraph shall not exceed $150,000 in any Airport Fiscal Year;
(vii) Any passenger terminal and associated
facilities and systems which are prudent and necessary to accommodate any
additional airline company at the Airport.
(B) The State shall consult with the
Signatory Airlines prior to undertaking any Capital Improvement under
subparagraph (A)(i) through (A)(vii) but no approval of any Signatory Airline
shall be required as a condition precedent thereto.
(13) Adoption of Airport Operating Budget.
(A) Not less than ninety (90) days prior to
the beginning of each Airport Fiscal Year, the state shall provide each
Signatory Airline with a copy of its proposed Airport Operating Budget for such
ensuing Airport Fiscal Year, which proposed Airport Operating Budget shall
incorporate (i) details of operating and non operating revenues and expenses
including any carry forward of surplus or deficit required under subdivision
(11) of subsection (i); (ii) a schedule of rates, rents, fees and charges for
such Airport Fiscal Year; (iii) estimates made by the state of total arrivals,
total Revenue Aircraft Arrivals and total enplaning passengers for each
Signatory Airline and for all Users, for such Airport Fiscal Year; and (iv) a
schedule of Capital Improvements subject to or not subject to
Majority-In-Interest approval including the information outlined in subdivision
(12) of subsection (i) of this section.
(B) The Signatory Airlines shall review such
proposed Airport Operating Budget and provide their comments to the State not
less than sixty (60) days prior to the beginning of the ensuing Airport Fiscal
Year. In connection with such review, the state shall provide each of the
Signatory Airlines with such reasonably detailed figures and estimates as they
may request which serve as the basis for the proposed Airport Operating Budget
and such schedule of rates, rents, fees and charges.
(C) Not less than forty-five (45) days prior
to the beginning of each Airport Fiscal Year, the Signatory Airlines shall vote
to approve or disapprove of the Airport Operating Budget. A Signatory Airline
shall be deemed to have approved of the Airport Operating Budget in the absence
of written disapproval provided to the Commissioner. If, within such forty-five
(45) days, a Majority-in-Interest of the Signatory Airlines does not approve of
the Airport Operating Budget, then such Signatory Airline or Airlines shall be
entitled to meet with the Commissioner of Transportation to discuss such
disagreement.
(D) Subject to the
provisions of Section 15-101nn of the General Statutes, if, after a meeting
held pursuant to subparagraph (C) of subdivision (13) of subsection (i) of this
section, a Majority-in-Interest of the Signatory Airlines does not approve the
resulting proposed Airport Operating Budget not less than thirty-five (35) days
prior to the beginning of the Airport Fiscal Year, the Commissioner of
Transportation may do one of the following:
(i) adjust the Airport Operating Budget
including rates, rentals, fee and charges to a point where a
Majority-in-Interest of the Signatory Airlines approve; or
(ii) adopt said Airport Operating Budget
including rates, rentals, fees and charges, which shall be fully effective
under regulation, and collected from the Signatory Airlines, and in such event,
the Signatory Airlines may pursue their rights, if any, to any remedies they
may have, and to protest, under applicable law, said rates, rentals, fees and
charges.