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HomeMy WebLinkAboutResolution 3375-06-2006 Rl® 3375-06-2006 A RESOLUTION ]BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS REQUESTING THE UNITED STATES CONGRESS TO INCORPORATE THE PROPOSED LOCAL SOLUTION OF THE CITIES OF FORT WORTH AND DALLAS IN ANY LEGISLATION ENACTED BY CONGRESS REGARDING THE WRIGHT AMENDMENT AND DIRECTING CITY STAFF TO BRING FORTH CONTRACT DOCUMENTS TO IMPLEMENT THE TERMS AND SPIRIT OF THE "JOINT STATEMENT" WHICH IS ATTACHED AS EXHIBIT "A" WHEREAS, the Cities of Dallas and Fart Worth, Texas (the `Cities') jointly own the Dallas/Fort Worth lntemational Airport {"DFW") which rs operated for and on behalf of the Cities by a Joint Airport Board (the `Board"} pursuant to the terms, provisions and requirements of a certain `Contract and Agreement" between the Cites and pursuant to the terms, provisions and requirements of the 196$ Regional Airport Concurrent Bond Ordinance" (as amended. and supplemented, the `1968 Ordinance"}; and WHEREAS, pursuant to the 1968 Ordinance and various ordinances supplemental thereto (the 1968 Ordinance and the supplemental ordinances being referred to herein collectively as the `Outstanding Ordinances"), the Cities herel;ofore issued and there are currently outstanding Joint Revenue Bonds of the Cities, the proceeds of which were used to construct, improve, enlarge and equip DFW and WHEREAS, the Cities each own and operate other airports that provide various aviation and air cazxi.er services in the Dallas/Fort Worth metropolitan area, and WHEREAS, the Outstanding Ordinances set forth certain provisions relating to other airports owned by the Cities, which airports by their nature may be potentially competitive with the operation of DFW including the covenants to take certain actions as may be necessary appropriate and legally permissible to limit certificated air carrier services at such airports; and WHEREAS, subsequent to the adoption of the 1968 Ordinance, including the covenants contained therein regarding compettion with DFW by other airports owned by the Cities, the Congress of the United States passed and enacted the Airline Deregulation Act of 1978, pursuant to which provisions restnctmg permitted flight destinations by commercial air carvers were eliminated, and 11L~"l~'"!~ ~~" 1~"~~~' 1YIR~~~'~.'~ Resolution No 3375-06-2006 WHEREAS m February 1980 the Congress enacted Section 29 of the International A>_r Transportation Competition Act of 1979 commonly referred to as the `Love Field Amendment" or `Wright Amendment" and declared rt to be consistent with the public convenience and necessity to limit air earner service out of Love Field (i) to a~zy interstate destination m an aircraft having a passenger capacity of 56 seats or less (the `Commuter Aircraft Exception '), or on charter flights not exceeding 10 per month, and (ii) to points within Texas and the four states adjacent to Texas (Louisiana, Arkansas, Oklahoma and New Mexico) m aircraft of any size, subject to certain restrictions on through service or ticketing; and WHEREAS m 1997 Congress passed an amendment to the Wright Amendment, commonly referred to as the Shelby Amendment, that (i) expanded the adjacent state rule of the Wright Amendment to allow aircraft of any size 1:o fly to three additional states (Kansas, Alabama, and Mississippi) and (ii) provided that aircraft weighing not more than 300 000 pounds that is reconfigured to accommodate 56 or fewer passenger would comply with the Commuter Aircraft Exception of the Wright Amendment and such aircraft could fly to and from Love Field to any interstate destination, and WHEREAS, m 2005 Congress again. passed an amendment to the Wright Amendment which expanded the adjacent-state rule to add the state of Missouri, thereby allowing aircraft of any size to fly to and from Love Field to any point within Texas, Alabama, Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, and New Mexico, subject to certain restrictions on through service or ticketing; and WHEREAS, certain congressional leaders have introduced legislation to either repeal or further modify the restrictions of the Wright Amendment, which could impact airspace, air operations and aviation service m the North Central Texas region, and WHEREAS, certain members of Congress informed the Cities that rt would be preferable for the Cities to present a local solution for addressiing airspace air operations and aviation needs m the North Central Texas region and particularly the Dallas/ Fort Worth metropolitan area, prior to any further action being taken by Congress that would directly impact aviation service m the region, and WHEREAS m response to various pending and proposed Congressional actions that would further affect, modify or repeal the Wright Amendment, the City Councils of Dallas and Fort Worth, on March 8, 2006 and March 7 2006 respectively passed a Concurrent Resolution (identified as Dallas Resolution No 06-0870 and Fort Worth Resolution No 3319-03-2006), requesting members of the United States Congress to refrain from taking any action regarding, or making any further amendments to, the Wright Amendment m order to allow the Cities an opportunity to work towards a local solution for addressing air operations and aviation needs m the North Central Texas region, and to present a mutually agreed upon plan to the Congress for its consideration, and Resolution No 3375-06-2006 WHEREAS, the Crty of Dallas, pursuant to Resolution No 06-0997 adopted April 6, 2006, commissioned anImpact/Analysis/Master Plan Update for Love Field by DMJM Aviation, Inc to provide updated information and analysis as to aircraft noise, air quality traffic impact, and economic impact at Love Field if the Wright Amendment were repealed or substantially modified, and WHEREAS, after investigation and analysis of the available facts and giving due consideration to the economic, environmental, and personal welfare and interests of their respective residents, the general public, and the holders of DFW A.~rport Joint Revenue Bonds, the Cities have conferred, deliberated, and agreed to a local solution regarding the Wright Amendment and related matters that the Cities believe best serves such interests given the likelihood that Congress could take action to repeal or substantially modify the Wright Amendment; and WHEREAS the local solution was agreed to by the Crty of Fort Worth, Crty of Dallas, Southwest Airlines, American Airlines, and the Dallas/Fort Worth International Airport Board, NOW THEREFORE, BE IT RESOL~IED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Section 1 That legislation be enacted by the Congress of the Umted States affecting or modifying the Wright Amendment, incorporating and implementing the provisions and sport of the Joint Statement" set forth m Exhibit A. Section 2 That staff be directed to bung forth for consideration by both Crty Councils definitive contracts to implement the terms and sport of the `Joint Statement" Section 3 That this resolution shall take effect upon passage by the Crty Council of the City of Fort Worth. Resolution No 3375-06-2006 Adopted this _ 024_ day of __ ~~n e__________ 2006 ATTEST .{,': ~o '= r,~.~ u ~ ~.~ / f U ,,~ City Secretary ~:: APPROVED AS TO FORM AND LEGALITY City Attorney APPROVED CITY CCUNCiL JUN 2 d 2006 `(~ ~~,,,~..,.,D City S~ ry of the City of Fort Worth, Texas FORT WORTH ' ---~-~~~-- ----." Ame~canAirlines' ' SOUTHWEST' `- JOINT STATEMENT AMONG THE CITY OF DALLAS, THE CITY OF FORT WORTH, SOUTHWEST AIRLINES, AMERICAN AIRLINES, AND DFW INTERNATIONAL AIRPORT TO RESOLVE THE "WRIGHT AMENDMENT" ISSUES 1 The City of Dallas, the Ctty of Fort Worth, Southwest Airlines, American Airlines, and DFW International Airport, hereinafter the `Parties, agree to seek the enactment of legislation to initially amend section 29 of the International Atr Transportation Act of 1979 more commonly known as the `Wright Amendment" and ultimately seek its repeal as follows a. To immediately allow airlines serving Dallas Love Field (DLF) to offer through ticketing to destinations within the 50 United States and the District of Columbia and to market such services; and b Except as provided below to eliminate all the remaining restrictions on service from DLF after eight years from the enactment of legislation. 2. The Parties agree that international commercial passenger service shall be limited exclusively to Dallas/Fort Worth International Airport. The Cities of Dallas and Fort Worth ("Cities") shall work jointly to encourage all such flights into DFW International Airport. Through ticketing to or from a destination beyond the 50 United States and the District of Columbia shall be prohibited from Dallas Love Field 3 The Parties agree that consistent with the updated DLF Master Plan, the number of gates available for scheduled passenger air service at DLF will be, as soon as practicable, reduced from the 32 gates envisioned in 2000 to 20 gates.''2 ~ Airlines may not subdivide a `gate. Agate shall consist of one passenger hold room and one passenger loading jet bridge supporting one aircraft parking space, and no hardstand operations shall be permitted. a The Parties .agree that, upon four years after enactment of legislation as provided herein, 16 gates would be leased by Southwest Airlines, 2 would be leased by American Airlines, and 2 would be leased by Continental Airlines. American Airlines and Southwest Airlines agree to voluntarily surrender any rights under existing leases to reduce the number of gates necessary to implement this agreement. Southwest Airlines also agrees that the 5 remaining gates in the North Concourse at Love Field will not be used for,passenger service and the facility shall be modified as necessary up to and including demolition to ensure it can never'be utilized for passenger service. To the extent a new entrant carrier seeks to enter Dallas Love Field, the Ciry of Dallas will seek voluntary accommodation from its existing carriers to accommodate the new entrant service. If the existing carriers are not able or are not willing to accommodate the new entrant service, then the City of Dallas agrees to require the sharing of preferential lease gates, pursuant to Dallas s existing lease agreements. To the extent that any existing airline leases.at Dallas Love Field revert to Dallas, these gates shall be conve~7ed to common utilization during the existing term of the lease. 4 The City of Dallas agrees that it will negotiate a voluntary noise curfew at DLF precluding scheduling airline flights between 11 p.m. and 6 a.m. The City of Dallas agrees that it will significantly redevelop portions of DLF consistent with the updated DLF Master Plan, including acquisition of the portions of the lease on the Lemmon Avenue ~acihty up to and including condemnation, necessary to fulfill the obligations under this agreement. The City of Dallas further agrees to the demolition of the Legend gates immediately upon acquisition of the lease to ensure the facility can never again be used for passenger service. Southwest Airlines and the City of Dallas shall agree on a phase-in of capital projects and which party will manage construction. The City of Dallas also agrees to the modernization of the main terminal. It is agreed by the parties that a minimum investment of $150 million .and up to a maximum of $200 million (m 2006 dollazs) will be made by the City of Dallas and included in the cost of operating the airport as necessary and appropriate. This amount is exclusive of the acquisition and demolition of the Lemmon Avenue gates and the development and construction of the people mover to Love Field. The City of Dallas and Southwest Airlines will mutually agree on capital projects exceeding $200 million, exclusive of the Lemmon Avenue gate acquisition and the people mover Southwest Airlines out-of pocket capital costs for any of the capital projects shall be credited toward the minimum and maximum requirements. The capital and operating costs for those redeveloped and modernized facilities will be included in the landing fee and space rental charges to be collected from the users of those facilities, however the operating reserve shall not exceed one year operating costs (operating and maintenance plus debt service) during the term of Southwest Airline s lease. These adjustments to landing fees and facility costs will be included by the City of Dallas as necessary and appropriate to cover these improvements upon enactment of the legislation. The current plan also included the retirement of existing debt and the issuance of new debt for these new improvements. All improvements shall be made by the expiration of the 8-year period. The City of Dallas will seek approval to use PFCs to fund DART access to Love Field ("people mover") 6 The Cities agree that they will both oppose efforts to initiate commercial passenger air service at any area airport other than DFW during the eight year period. `Commercial passenger air service" does not include a spaceport or air taxi service as defined by Part 135 of the Federal Aviation Regulations. The City of Dallas and the City of Fort Worth agree to jointly oppose any attempts to repeal or modify the Wright Amendment earlier than the eight year period To the extent any other airport within aneighty-mile radius seeks to initiate scheduled commercial passenger service within this eight year period, both cities agree to work diligently to bring that service to DFW or if that effort fails, then to airports owned by the Cities of Dallas and/or Fort Worth. 7 This agreement is predicated upon the condition that Congress will enact legislation to implement the terms and spirit of this agreement. Congress should not exempt additional states from the Wright Amendment during the eight year penod before it is eliminated. 8 This agreement shall not be modified except upon mutual agreement of all parties. 9 The Cities acknowledge their outstanding D/FW Airport bond covenants, to the extent such covenants are legally enforceable, and nothing m this agreement is intended to nor shall contravene such covenants. By the execution of this agreement, Southwest Airlines does not surrender any of its rights to operate at Love Field except as explicitly outlined in this agreement. Joint Statement Among the City of Dallas, City of Fort Worth, Southwest Airlines, American Airlines, and DFW International Airport to Resolve the `Wright Amendment" Issues Page 2 of 4 10 If Southwest Airlines or rts affiliate or code share partner (except for published/scheduled code share service from DFW to Midway Airport as of June 14 2006) chooses to operate from another airport within an 80-mile radius of Love Field in addition to its operations at Love Field, then for every such gate which Southwest operates at another airport within this radtus, Southwest will voluntarily relinquish control of an equivalent number of gates at Love Field, up to 8 gates and such gates shall be made available to other carriers. If other carriers are not interested in these gates, then they can be made available to Southwest Airlines for its use on a common use basis. This requirement to relinquish gates shall expire in 2025 11 If American Airlines or its affiliate or code share partner chooses to operate from another airport within an 80-mile radius of Love Field in addition to its operations at DFW Airport and Love Field, then for every such gate which American operates at another airport within this radius except for DFW International Airport and Love Field, American Airlines will relinquish control of an equivalent number of gates at Love Field, up to one and one-half gates and such gates shall be made available to other camers. If other carriers are not interested in these gates, then they can be made available to American Airlines for its use on a common use basis. This requfrement to relinquish gates shall expire in 2025 12. Each carner shall enter into separate agreements, as appropriate, to memorialize rts obligations under this proposed local solution. Similarly the Cities shall enter into such agreements as necessary to implement the proposed local solution. All such agreements are subject to the requirements of law and to the extent legally permissible. 13 In the event that Congress passes legislation that is inconsistent with the Parties agreement herein, or subsequently amends that legislation, and tf Southwest or rts affiliate or code share partner commences non-stop service to or from. Love Field to a state not currently allowed under the Wright Amendment, then Southwest will voluntarily relinquish control of 8 gates and such gates will be made available to other carriers. If other camers are not interested in these gates, then they can be made available to Southwest Atrlmes for their use on a common use basis. Likewise, in the event that Congress passes legislation that is inconsistent with the Parties agreement herein, or subsequently amends that legislation, and if American Airlines or its affiliate or code share partner commences non-stop service to or from, Love Field to a state not currently allowed under the Wright Amendment, then American Airlines will relinquish control of 1 and one-half gates and such gates will be made available to other camers~ If other carriers are not interested m these gates, then they can be made available to American Airlines for its use on a common use basis 14 The Parties hereby represent to the Congress of the United States, and to the Citizens of the Dallas- Fort Worth that they have approved of and support the proposed local solution. The Parties each separately covenant that they will not now or in the future, support, encourage or participate in any effort to defeat or modify or amend the legislation that is described m this Agreement. 15 This is an agreement to principle only and is subject to definitive contracts being approved by both City Councils. This agreement in pnncnple is also subject to final approval of the DFW International Airport Board. The parties agree that the final document memorializing this proposed local solution shall be consistent with all federal rules, regulations and laws. The Parties agree that for this agreement to be binding, it must be executed by all parties no later than July i Stl' 2006 Joint Statement Among the City of Dallas, City of Fort Worth, Southwest Airlines, American Airlines, and DFW International Airport to Resolve the `Wright Amendment" Issues Page 3 of 4 16. If the U S. Congress does not enact the legtslatlon by December 31 2006, which would allow the Parties to Implement thts agreement in accordance with Its terms, then the agreement is null and void unless all parnes agree to extend the agreement. 17 As part of this agreement, the Clty of Dallas agrees to extend American Airllnes and Southwest Airllnes' lease to 2028. Executed this the 15th Day of June, 2006 .~ ~1 Th onorable Laura Miller Mayor of Dallas (~ ~ '\~ J _ Herbert D Kelleher Daniel P on Chairman of the Board Executive Vice President Marketing Southwest Alrhnes American Airlines The Hono ble ike J Mo~crl f Mayor Fo orth l•~ ,~ .~ ~Q~- ~ffl~e ' F gan Chief Executive Officer DFW Internattonal Airport Joint Statement Among the City of Dallas, City of Fort Worth, Southwest Airlines, American Airlines, and DFW International Airport to Resolve the `Wright Amendment" Issues Page 4 of 4