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HomeMy WebLinkAboutResolution 3386-07-2006DALLAS RESOLUTION NO FORT WORTH RESOLUTION NO 3386-07 2006 A CONCURRENT RESOLUTION OF THE CITY COUNCILS OF THE CITIES OF DALLAS AND FORT WORTH, TEXAS (1) APPROVING THE JUNE 15, 2006 JOINT STATEMENT AMONG THE CITY OF DALLAS CITY OF FORT WORTH SOUTHWEST AIRLINES AMERICAN AIRLINES AND DFW INTERNATIONAL AIRPORT (THE 'PARTIES') TO RESOLVE THE 'WRIGHT AMENDMENT" ISSUES, (2) AUTHORIZING THE EXECUTION OF A CONTRACT BETWEEN THE PARTIES INCORPORATING THE TERMS OF THE JUNE 15 2006 JOINT STATEMENT AND (3) REQUESTING THE UNITED STATES CONGRESS TO INCORPORATE THE TERMS OF THE JUNE 15 2006 JOINT STATEMENT IN ANY LEGISLATION ENACTED BY CONGRESS REGARDING THE WRIGHT AMENDMENT WHEREAS the Cities of Daflas and Fort Worth Texas (the `Cities') jointly own the Dallas/Fort Worth International Airport ("DFW") which is 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 Cities and pursuant to the terms provisions and requirements of the 1968 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 heretofore 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 carrier 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 competition 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 restricting permitted flight destinations by commercial air carriers were eliminated and Resolution No. 3386-07-2006 WHEREAS in February 1980 the Congress enacted Section 29 of the International Air Transportation Competition Act of 1979 commonly referred to as the Love Field Amendment" or `Wright Amendment" and declared it to be consistent with the public convenience and necessity to limit air carrier service out of Dallas Love Field Airport ("Love Field") (i) to any interstate destination in 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 in 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 to 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 in 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 air capacity and air service in the North Central Texas region and WHEREAS certain Members of Congress informed the Cities that it would be preferable for the Cities to present a local solution for addressing airport capacity and air service needs in the North Central Texas region and particularly in the Dallas/ Fort Worth metropolitan area prior to any further action being taken by Congress that would directly impact such aviation services in the region and Resolution No. 3386-07 2006 WHEREAS in 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 in order to allow the Cities an opportunity to work towards a local solution for addressing airport capacity and air service in the North Central Texas region and to present a mutually agreed upon plan to the Congress for its consideration and WHEREAS the City of Dallas pursuant to Resolution No 06-0997 adopted April 6 2006 commissioned an .Impact 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 repeated or substantially modified and WHEREAS the Love Field Impact Analysis/Master Plan Update prepared by DMJM Aviation Inc and GRA, Inc. found that, in the absence of the Wright Amendment, the overall impacts of operating 20 gates at Love Field under a No Wright Amendment scenario are the most comparable to the environmental thresholds agreed to and established in the 2001 Master Plan/Impact Analysis 32 Gate scenario with the Wright Amendment in place 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 Airport Joint Revenue Bonds the Cities conferred deliberated and agreed to a local solution regarding the Wright Amendment and related matters that 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 City of Dallas City of Fort Worth Southwest Airlines American Airlines and DFW International Airport (the 'Parties') as evidenced by the Joint Statement Among the Parties to Resolve the 'Wright Amendment" Issues executed June 15 2006 (the Joint Statement") Resolution No. 3386-07 2006 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCILS OF THE CITIES OF DALLAS AND FORT WORTH ACTING CONCURRENTLY Section 1 That the Joint Statement attached hereto as Exhibit A is hereby approved Section 2 That following approval as to form by the Dallas City Attorney and approval as to form and legality by the Fort Worth City Attorney the respective City Managers of the cities of Dallas and Fort Worth are hereby authorized to sign a contract between the Parties incorporating the terms of Exhibit A. Section 3 That any legislation enacted by the Congress of the United States affecting or modifying the Wright Amendment, shall incorporate and implement the provisions and spirit of the Joint Statement set forth in Exhibit A. Section 4 That anything set forth in this Resolution the Joint Statement, and the contract authorized hereby incorporating the terms of Exhibit A that requires the expenditure of public funds or the creation of any monetary obligation by either of the cities be strictly subject to the appropriation of funds for such purposes or the provisions for the payment of such obligation through issuance of legally permissible bonds or other debt obligations Section 5 That nothing set forth in this Resolution the Joint Statement, or the contract authorized herein shall require the cities of Dallas or Fort Worth or the DFW Airport Board to take any action that would result in (i) the loss of eligibility for future Federal airport grants for either city or the DFW Airport Board or (ii) FAA disapproval of any Passenger Facility Charge Application for either city or the DFW Airport Board or (iii) either city or the DFW Airport Board being found to be in non-compliance with its existing obligations under Federal aviation law Section 6 That the Resolution shall take effect only from and after passage by both the City Councils of Dallas and Fort Worth Resolution No. 3386-07 2006 Adopted this 11th day of July 2006 ATTEST ~.:~, ~ ~ - -~ ity Secretary ~r"_ :r,, :a~ :~ a APPROVED AS TO FORM AND LEGALITY ~.~ City Attorney APPROVED CITY COUNCIL JUL 1 1 2006 ~~~`~ City Secretary of the City of Fort Worth, Texas City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 7/11/2006 Resolution No 3386-07 2006 DATE Tuesday July 11 2006 LOG NAME. 12WRIGHT REFERENCE NO C-21559 SUBJECT Adopt Concurrent Resolution of the City Councils of the Cities of Dallas and Fort Worth Texas and Authorize Execution of Contract among The City of Dallas The City of Fort Worth Southwest Airlines Co American Airlines Inc and DFW International Airport Board Incorporating the Substance of the Terms of the June 15 2006 Joint Statement between the Parties to Resolve the 'Wright Amendment" Issues RECOMMENDATfON It is recommended that the City Council Adopt a concurrent resolution of the City Councils of the cities of Dallas and Fort Worth Texas. . Approving the June 15 2006 Joint Statement among the City of Dallas City of Fort Worth Southwest Airlines American Airlines and DFW International Airport (the 'Parties') to resolve the 'Wright Amendment" issues, . Authorize execution of Contract incorporating the terms of the June 15 2006 Joint Statement; and . Requesting the United States Congress to incorporate the terms of the June 15 2006 Joint Statement in any legislation enacted by Congress regarding the Wright Amendment; and 2. Authorize execution of the Contract among The City of Dallas, The City of Fort Worth Southwest Airlines Co American Airlines, Inc and DFW International Airport Board Incorporating the substance of the terms of the June 15 2006 Joint Statement between the Parties to Resolve the 'Wright Amendment" Issues (the Contract) DISCUSSION In response to various pending and proposed Congressional actions that would affect, modify or repeal the Wright Amendment, the City Councils of Dallas and Fort Worth passed a Concurrent Resolution (City of Fort Worth Resolution no 3319-03-2006 adopted March 7 2006) requesting that Congress refrain from taking any action regarding the Wright Amendment in order to give interested parties an opportunity to work toward a local solution for addressing airport issues in the region Following significant investigation analysis and dialogue on June 15 2006 the Cities of Fort Worth and Dallas Southwest Airlines American Airlines and the Dallas/Fort Worth International Airport Board signed a joint statement outlining the local solution agreed to by each of those five parties (the Joint Statement") and subsequently drafted a 'Contract" incorporating the terms of the Joint Statement. The attached concurrent resolution approves the Joint Statement, authorizes execution of the Contract, and requests the United States Congress to incorporate the terms of the Joint Statement in future legislation regarding the Wright Amendment. Logname 12WRIGHT Page 1 of 3 The attached contract memorializes the local solution outlined in the Joint Statement. The basic terms of the Contract are as follows Immediately allow airlines serving Dallas Love Field (Love Field) to offer through ticketing between Love Field and any destination (including international destinations) through any point in Texas New Mexico Oklahoma, Kansas Arkansas, Louisiana, Mississippi Missouri and Alabama. Eliminate all remaining restrictions on service from Love Field after eight years from the enactment of legislation Allow non-stop international commercial passenger service exclusively at Dallas/Fort Worth International Airport (DFW) Reduce the number of gates available for passenger air service at Love Field from 32 to 20 Further Dallas will negotiate a voluntary noise curfew at Love Field between 11 p m and 6 a.m redevelop Love Field within eight years and increase landing fees and/or rental rates Cities will jointly oppose efforts to initiate commercial passenger air service at any area airport other than DFW for eight years. Cities will ask Congress to enact legislation to implement this Contract. If Southwest Airlines operates from other airports within an 80 mile radius of Love Field before 2025 then for every such gate at other airports it will relinquish an equivalent number of gates at Love Field up to eight gates If American Airlines operates from other airports within an 80 mile radius of Love Field (other than DFW) before 2025 then for every such gate it will relinquish an equivalent number of gates at Love Field up to one and one-half gates. If Congress passes legislation that is inconsistent with the Parties agreement, Southwest Airlines and American Airlines agree to abide by this agreement, or if pursuant to such legislation either commences non-stop flights to or from Love Field to a state not currently allowed under the Wright Amendment, they agree to relinquish eight gates and one and one-half gates respectively If Congress does not enact legislation by December 31 2006 the Contract is null and void unless all parties agree to extend this Contract. FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that this action will have no material effect on City funds TO FundlAccount/Centers FROM Fund/AccountlCenters Submitted for City Manager's Office by Marc Ott (6122) 0 Originating Department Head. David Yett (7623) Marcia use (7607) Additional Information Contact: Benita Harper (7615} Logname 12WRIGHT Page 2 of 3 Peter Vaky (7601) Logname 12WRIGHT Page 3 of 3