The URL can be used to link to this page

Home My Public Portal AboutORD16359BILL NO. 2023-026 SPONSORED BY Councilmember Hensley ORDINANCE NO. f(p35'/ AN ORDINANCE APPROVING AN AIR SERVICE GUARANTEE PARTICIPATION AGREEMENT WITH CITY OF COLUMBIA, UNIVERSITY OF MISSOURI, BOONE COUNTY, AND COLE COUNTY AND SUPPLEMENTALLY APPROPRIATING FUNDS FOR SUCH AGREEMENT. WHEREAS, Columbia Regional Airport provides flights to several destinations around the country; additional air service is a need of the area; and WHEREAS, the City of Columbia, University of Missouri, Boone County, and Cole County and the City of Jefferson would pool funds together for two -years to assist in startup costs, and minimize economic risk for the Columbia Regional Airport to provide additional flights to other destinations, as set forth in the agreement attached as Exhibit A to this ordinance. NOW THREFORE BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, as follows: Section 1. The Mayor and City Clerk are authorized to enter into an Air Service Guarantee Participation Agreement with the City of Columbia, University of Missouri, Boone County, and Cole County substantially in the form set forth in Exhibit A, attached hereto and incorporated herein by reference. Section 2. An amount equal to $50,000 is hereby supplementally appropriated within the General Fund as indicated on Exhibit B, attached hereto. Passed: <__ Presiding Officer ATTEST: 17,2023 ,,e;. -L Approved: J1t1I IQ),90,73 Mayor Rcm-Ei. water APPROVED AS TO FORM: 1 AIR SERVICE GUARANTEE PARTICIPATION AGREEMENT This agreement is entered into on this _____ day of _______________, 2023 among the City of Columbia, Missouri, a constitutional charter city (“Columbia”), the County of Boone, a political subdivision of the State of Missouri (“Boone County”), the University of Missouri, a public corporation of the State of Missouri (“University”), the City of Jefferson, a constitutional charter city (“Jefferson City”) and Cole County (“Cole County”)a political subdivision of the State of Missouri. The parties agree as follows: 1. Background. Improved air service at the Columbia Regional Airport is in the best interest of all parties to this agreement. In an effort to secure additional air service between Columbia Regional Airport and other destinations, a revenue guarantee fund is being established at Columbia. The fund will be utilized by Columbia to minimize economic risk by one or more airline and assist with startup costs which may serve as an impediment to establishing new air service at the Airport. In order to provide flights between Columbia Regional Airport and other destinations, the parties wish to pool their resources and establish a fund for such purposes. 2. Revenue Guarantee. Columbia represents to the parties that the revenue guarantee fund has a 2-year term commencing on July 1, 2023. Columbia represents to the parties that it has secured additional contributions from various Central Missouri public and private entities and will be deposited by Columbia in an interest bearing account known as the Central Missouri Air Service Fund (the “Fund”), to be administered and used by Columbia to assist in meeting any potential revenue guarantee obligations to one or more airline under an Air Service Agreement which will be negotiated at a future date. 3. Limitation on Liability. The minimum liability for each of the parties is as follows: City of Columbia $800,000.00 Boone County 50,000.00 University of Missouri 80,000.00 City of Jefferson 50,000.00 Cole County 25,000.00 4. Payment of Funds. Each of the parties shall pay the total amount for which they may be liable under paragraph 3 to Columbia upon execution of an Air Service Agreement with the airline(s) or at any point before said agreement is executed. Columbia shall place these funds, into a separate account established, maintained and controlled by Columbia (“Central Missouri Air Service Fund”). Columbia shall 2 use these funds, and any interest earned thereon, solely for paying an airline(s) for any revenue shortfalls as required by the Air Service Agreement. If Columbia fails to enter into an Air Service Agreement with an airline(s) by June 30, 2025, the party can request that Columbia shall return the funds contributed by the party hereunder or opt to keep their funds in the Fund for an additional six month period (through December 31, 2025). 5. Excess Funds. Any funds remaining at the end of the 2-year term of the Air Service Agreement or upon any other termination of the guarantee requirements under the Air Service Agreement shall be dispersed pro rata to the parties contributing to the Fund. 6. Quarterly Statements. Columbia shall provide quarterly statements to the parties on the status of the Central Missouri Air Service Fund showing the amount of any interest earned and the amount of any payments made. 7. Records. All records available to Columbia under the Air Service Agreement shall be made available to the other parties upon request. 8. Audits. Columbia, at the request of any party or parties, shall exercise its right under the Air Service Agreement to conduct an audit of the airline’s records. The party or parties requesting the audit shall pay all costs of the audit. 9. Benefit of Parties. This agreement is for the sole benefit of Columbia and the parties. Nothing in this agreement is intended to confer any rights or remedies on any other person. 10. Authority of Signatories. The signatories to this agreement, by signing this agreement, represent that they have obtained authority to enter into this agreement on behalf of the respective parties to this agreement and bind such parties to all terms and conditions contained in this agreement. 11. Counterparts. This agreement may be executed by the parties in several counterparts, each of which shall be deemed an original instrument. [Signatures on following pages.] 3 IN WITNESS WHEREOF, the parties have executed this agreement on the day and year first written above. CITY OF COLUMBIA, MISSOURI By: ________________________________ De’Carlon Seewood, City Manager Attest: _____________________________ Sheela Amin, City Clerk Approved as to Form: _____________________________ Nancy Thompson, City Counselor Certification: I hereby certify that this contract is within the purpose of the appropriation to which it is to be charged, Account No. _________________________, and that there is an unencumbered balance to the credit of such appropriation sufficient to pay therefor. ________________________________ Matthew Lue, Director of Finance 4 COUNTY OF BOONE, MISSOURI By: ________________________________ Kip Kendrick, Presiding Commissioner Attest: _____________________________ Brianna L. Lennon, County Clerk Approved as to Form: _____________________________ C.J. Dykhouse, County Attorney Certification: I hereby certify that this contract is within the purpose of the appropriation to which it is to be charged, Account No. _________________________, and that there is an unencumbered balance to the credit of such appropriation sufficient to pay therefor. ________________________________ County Collector 5 THE UNIVERSITY OF MISSOURI By: ________________________________ Ryan Rapp, Chief Financial Officer, University of Missouri System Attest: Signature Name: Title: Approved as to Form: Name and Title Certification: I hereby certify that this contract is within the purpose of the appropriation to which it is to be charged, Account No. _________________________, and that there is an unencumbered balance to the credit of such appropriation sufficient to pay therefor. ________________________________ Finance Director CITY OF JEFFERSON, MISSOURI By: - Ron Fitz er, May CIA Lil! rim, WOM-1 Approved as to Form: Ryan oe man, City Counselor Certification: I hereby certify that this contract is within the purpose of the appropriation to which it is to be charged, Account No. , and that there is an unencumbered balance to the credit of such appropriation sufficient to pay therefor. Finance Director A COLE COUNTY, MISSOURI By: Sam Bushman, Presiding Commissioner Attest: Name: Title: Approved as to Form: Name: Title: Certification: I hereby certify that this contract is within the purpose of the appropriation to which it is to be charged, Account No. and that there is an unencumbered balance to the credit of such appropriation sufficient to pay therefor. County Collector 7 Bill 2023-026 Exhibit B General Fund: Revenue 10-100-495995 Transfer From (to) Surplus1 50,000.00$ Expenditure 10-185-522020 Professional Services 50,000.00$ SUPPLEMENTAL APPROPRIATION FISCAL YEAR 2022-2023 BUDGET