HomeMy WebLinkAbout09-30-2014 Special MeetingMinutes of the Fairhope Airport Authority
Special Meeting
September 30, 2014
The Fairhope Airport Authority met Tuesday, September 30, 2014 at
4:30PM in the Delchamps Suite, Room 1, in the Civic Center at 161 N
Section St.
Present: Charles Zunk, Chairman; other members present: Pam Caudill,
Charlie Bassett, Joe McEnerney, and Rod Platt. Absent was Jack Burrell.
Also present was David Bagwell, Attorney. Cynthia A Boothe took the
minutes.
Consideration of Resolution to approve a lease extension with
Continental Motors Services, Inc for the FBO: Charles Zunk stated that a
lease extension has been proposed to extend the lease for the FBO to
Continental Motors Services, Inc from November 1, 2014 until October 31,
2039 (25 years). He also stated that if The Authority wishes to extend the
lease that it will not be signed until it is reviewed by the FAA. The draft
lease is attached. After the group reviewed and discussed the terms and
extent of the proposed lease and with a motion on the table to approve the
lease, and to permit the Chairman to approve changes in the draft lease to
conform to FAA/ALDOT requirements, by Rod Platt and a second by Charlie
Bassett it was unanimously carried.
Charles Zunk asked for a motion to adjourn the meeting which was made
by Charlie Bassett and seconded by Pam Caudill and was unanimously
carried at 5:05PM. I
LEASE EXTENSION
FOR FAIRHOPE AIRPORT AUTHORITY/CMS LEASE
FOR 2014-2039
SECTION 1. THE PARTIES and THE LEASE
A. THE AUTHORITY as LESSOR. Fairhope Airport Authority [hereinafter
called "THE AUTHORITY"], a public corporation organized under the laws of
the State of Alabama, upon its having been created, succeeded to the rights under
that lease dated June 28, 1995, on certain premises at the "Fairhope Municipal
Airport", the name of which was later changed to the "H. L. `Soriny' Callahan
Airport" [hereinafter called "THE AIRPORT"]. THE AUTHORITY executes
this lease agreement in that capacity.
B. CMS as LESSEE. The original lessee under the lease was Teledyne Industries,
Inc., a California corporation, which did business in this matter through its
unincorporated division Teledyne Continental Motors, which on November 29,
1999, became an unincorporated division of Teledyne Technologies Incorporated,
a Delaware corporation, whose rights and liabilities under the subject lease
through a written instrument executed on or about April 15, 2002, went to
Teledyne Continental Motors, Inc., a Delaware corporation [hereinafter called
"TCM"] which is qualified to do business in Alabama. TCM has since December
31, 2001 been lessee under the below -described lease. On April 19, 2011 TCM
was purchased by AVIC International, a Chinese corporation, which in the
process of the purchase, set up Technify Motors USA, a Delaware corporation
headquartered in Mobile. The name of TCM was changed to Continental Motors,
Inc. [hereinafter called "CMI"]. CMI is a wholly owned subsidiary of Technify
Motors USA. On November 9, 1999 Teledyne Technologies Incorporated
acquired the assets of Mattituck Aviation Corporation of Long Island, New York.
The name was changed to Mattituck Services, Inc., a Delaware Corporation
[hereinafter called "MSI"]. Upon the acquisition by Technify Motors USA of
TCM and MSI, MSI became a subsidiary of Technify Motors USA, and its assets
and operations were transferred to Fairhope, Alabama, where it is qualified to do
business. Its corporate purpose is to focus on the Maintenance, Repair, and
Overhaul segment of Technify Motors USA's business. MSI conducts all its
current business at THE AIRPORT. In July of 2014, the name was changed to
Continental Motors Services, Inc. [hereinafter called "CMS"]. CMS remained a
Delaware corporation and is qualified to do business in Alabama. This lease
agreement is executed by CMS.
C. THE LEASE. "THE LEASE" as used in this document is that lease dated June
28, 1995 by and between the City of Fairhope, by and through its Fairhope
Airport Board (the City's rights to which have been succeeded to by THE
AUTHORITY), and Teledyne Industries, Inc. (Teledyne Industries, Inc.'s rights
to which have been succeeded to by CMS), together with those certain
Amendments (First through Fifth) and that certain Letter Agreement (dated April
5, 2005) and that certain Final Lease Extension (dated December 1, 2010), for that
certain premises at THE AIRPORT.
SECTION 2. THE EFFECTIVE DATE
The effective date of this agreement to modify THE LEASE is November 1, 2014
[hereinafter called "THE EFFECTIVE DATE"]
SECTION 3. THE LEASE MODIFICATIONS
In consideration of the rights and privileges herein granted and received, THE
AUTHORITY and CMS, respectively, hereby covenant and agree to the modifications to
THE LEASE described in this Section 3. These modifications to THE LEASE begin on
THE EFFECTIVE DATE.
A. THE LEASE is extended for one final term, for twenty-five (25) years, beginning
November 1, 2014 and ending on October 31, 2039.
B. CMS shall operate the Leased Premises at THE AIRPORT as a "fixed -base
operator" [hereinafter "FBO"] as the term is described "Exhibit B — Sonny
Callahan Airport — Minimum Standards For Commercial Aeronautical Activities
5/20/2014" [hereinafter called "THE MINIMUM STANDARDS"] at the end of
this document and incorporated herein by reference. CMS agrees to be bound by
all the terms and requirements contained in THE MINIMUM STANDARDS.
C. CMS agrees to pay monthly rental of twelve thousand seven hundred fifty dollars
($12,750.00).
D. CMS agrees to pay rent due to Authority, in advance on or before the tenth (101h)
day of the month for which rent is due. No invoice will be sent. Rent for periods
less than one month shall be prorated on a daily basis (365-day year). CMS shall
be responsible for adding the applicable state and local sales tax (if any) to all
rental payments. Said payments shall clearly indicate what amount of the total
payment is for rent and what amount is for state and local sales tax.
E. Any rental payments and fees required under THE LEASE which are not received
when due shall accrue interest at the rate of one and one-half percent (1.5%) per
month from the due date until receipt of payment.
F. Adjustments to the rental rate will be made on January 1, 2017, and each two
years thereafter, using the National Consumer Price Index for Urban Consumers
[hereinafter "CPI-U"]. The rental rate shall be increased or decreased by a
percentage amount equal to the percentage increase or decrease in the CPI-U for
the previous two years using October 1 and September 30 as the beginning and
ending dates. The adjusted rental rate will therefore go into effect in accordance
with the following schedule:
January 1, 2017 based on CPI-U change from 10/1/2014 to 9/30/2016
January 1, 2019 based on CPI-U change from 10/1/2016 to 9/30/2018
January 1, 2021 based on CPI-U change from 10/1/2018 to 9/30/2020
January 1, 2023 based on CPI-U change from 10/1/2020 to 9/30/2022
January 1, 2025 based on CPI-U change from 10/1/2022 to 9/30/2024
January 1, 2027 based on CPI-U change from 10/1/2024 to 9/30/2026
January 1, 2029 based on CPI-U change from 10/1/2026 to 9/30/2028
January 1, 2031 based on CPI-U change from 10/1/2028 to 9/30/2030
January 1, 2033 based on CPI-U change from 10/1/2030 to 9/30/2032
January 1, 2035 based on CPI-U change from 10/1/2032 to 9/30/2034
January 1, 2037 based on CPI-U change from 10/1/2034 to 9/30/2036
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January 1, 2039 based on CPI-U change from 10/1/2036 to 9/30/2038
G. THE AUTHORITY imposes a fuel flowage fee on all tenants at THE AIRPORT
to which THE AUTHORITY has granted the privilege of operating a fuel farm.
The fuel flowage fee is payable monthly to THE AUTHORITY, based upon the
amount of fuel purchased by each fuel farm operator in the preceding month. As
of November 1, 2014 THE AUTHORITY is fixing the fuel flowage fee at $0.07
per gallon, and THE AUTHORITY reserves the right to change this fuel flowage
fee from time to time.
H. CMS shall be responsible for and shall promptly pay all property taxes; personal
property taxes; all sales and other taxes measured by or related to the payments
hereunder required under law; all license fees; and any and all other taxes,
charges, imposts or levies of any nature, whether general or special, which, at any
time, may be in any way imposed by local, state, or federal authorities, or that
become a lien upon CMS, THE AUTHORITY, the Leased Premises, or any
improvements thereon, by reason of this Agreement or CMS's activities in, or
improvements upon, the Leased Premises pursuant to this Agreement. THE
AUTHORITY warrants and represents that it shall not impose any taxes,
assessments, or charges, except those imposed on all other businesses operating
on THE AIRPORT, upon CMS during the term of this Agreement.
THE AUTHORITY owns and operates two 8-unit T-hangar buildings adjacent to
the Leased Premises. These two buildings are marked on "Exhibit A —
Modifications To The Leased Premises" at the end of this document and
incorporated herein by reference. As of THE EFFECTIVE DATE CMS and THE
AUTHORITY agree that these two t-hangar buildings become part of the Leased
Premises, to be operated by CMS. THE AUTHORITY makes assignment to
CMS of the rights and obligations of all the current T-hangar leases between THE
AUTHORITY and the individual tenants of the T-hangars in the two 8-unit T-
hangar buildings. THE AUTHORITY will pay to CMS the security deposits of
those leases. Thereafter, THE AUTHORITY will have no responsibility for the
management of those t-hangars, which will be assumed by CMS, including the
right to set the rental rates for the individual t-hangars.
J. Within one year from THE EFFECTIVE DATE, CMS will add these aeronautical
services to its FBO operation: avionics sales and repair, propeller shop, aircraft
upholstery, aircraft management, nationwide aircraft parts and distribution, and
flight training including Part 141 certification; and, CMS will make best good
faith efforts to obtain a military fuel sales contract. THE AUTHORITY hereby
grants CMS the exclusive right to the Leased Premises, and all of the
improvements located thereon, to conduct on a NON-EXCLUSIVE basis, those
new aeronautical services and activities, in addition to its current aeronautical
services. THE AUTHORITY further grants to CMS the rights of ingress and
egress to and from the Leased Premises over THE AIRPORT common use
roadways, subject to any rules and regulations which may have been established
or shall be established in the future by THE AUTHORITY. CMS shall not use,
nor permit others to use, the Leased Premises, and any improvements thereon, for
any commercial or non-commercial purpose, other than the authorized purposes
set forth above. CMS shall not use the Leased Premises to store any material not
required for the prosecution of the authorized purposes set forth above. Should
CMS wish to perform any additional commercial aeronautical services on or from
its Leased Premises, CMS shall make a written application to THE AUTHORITY
requesting permission to provide such additional services. THE AUTHORITY
shall apply the criteria and standards embodied in its Minimum Standards,
included herein as Exhibit B, as it exists at the time of application in determining
whether to authorize CMS to perform such services. If THE AUTHORITY
determines that CMS is qualified to perform the requested aeronautical services
under the Minimum Standards as it exists at the time of application, and if CMS
and THE AUTHORITY execute an addendum to this Agreement setting forth the
terms and conditions by which CMS shall perform the additional aeronautical
services or activities, including any additional fees, CMS shall be deemed
authorized to perform said additional services or activities. Notwithstanding
anything herein contained that may be, or appear to be, to the contrary, it is
expressly understood and agreed that the rights granted under this Agreement are
NON-EXCLUSIVE and THE AUTHORITY herein reserves the right to grant
similar privileges to another operator or operators on other parts of THE
AIRPORT.
K. It is expressly understood that for all of its aeronautical services provided on the
Leased Premises, CMS agrees to conform to all Federal, State, and local laws and
regulations, all of which may apply to the services to be performed by CMS, and
that THE AUTHORITY is to be held by CMS free and harmless from any act or
.failures by CMS to do so. Such laws and regulations may include but are not
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limited to environment, health, safety, fire, security, storm water drainage, and
business licensing. If THE AUTHORITY incurs any fines and/or penalties
imposed by Federal, State, County, or Municipal authorities as a result of the acts
or omissions of CMS, its partners, officers, agents, employees, contractors,
subcontractors, assigns, subtenants, or anyone acting under its direction and
control, then CMS shall be responsible to pay or reimburse THE AUTHORITY
for all such costs and expenses.
L. CMS will provide, operate and maintain any and all safety equipment required by
fire and safety codes or insurance carriers. Compliance with all fire and safety
codes thereof is the sole and absolute responsibility of CMS.
M. CMS shall indemnify and hold harmless the Fairhope Airport Authority itself, any
subsidiaries or affiliates, elected and appointed directors, officers, employees,
volunteers, representatives and agents from any and all claims, suits, actions,
damages, liability and expenses in connection with loss of life, bodily or
personal injury, or property damage, including loss or use thereof, directly or
indirectly caused by, resulting from, arising out of or occurring in connection
with the performance of this Agreement or on or about the Airport premises,
provided any such claim, suit, action, damage, liability or expense is caused in
whole or in part by an act or omission of CMS, or CMS's subtenants, contractors,
subcontractors, representatives, licensees, invitees, agents or employees of CMS
or employees of any of the aforementioned individuals or entities. CMS's
obligation shall not be limited by, or in any way to, any insurance coverage or by
any provision in or exclusion or omission from any policy of insurance. Nothing
contained herein shall obligate CMS to hold harmless the Fairhope Airport
Authority for the Fairhope Airport Authority's negligence. CMS agrees to pay on
behalf of THE AUTHORITY, as well as provide a legal defense for THE
AUTHORITY, both of which will be done only if and when requested by THE
AUTHORITY, for all claims as described in this Hold Harmless paragraph. Such
payment on the behalf of THE AUTHORITY shall be in addition to any and all
other legal remedies available to THE AUTHORITY and shall not be considered
to be THE AUTHORITY's exclusive remedy
N. CMS represents that it is the owner of, or fully authorized to use, any and all
services, processes, machines, articles, marks, names, or slogans used by it in its
operations under, or in connection with, this Agreement. CMS shall save and
hold harmless THE AUTHORITY, its elected officials, employees, volunteers,
representatives and agents free and harmless of any loss, liability, expense, suit, or
claim for damages in connection with any actual or alleged infringement of any
patent, trademark, or copyright, or from any claim of unfair competition or other
similar claim, arising out of CMS's operations under, or in connection with this
Agreement.
O. CMS, for itself, its personal representatives, successors in interest, assigns and
subtenants, as part of the consideration hereof, does hereby covenant and agree
that (1) no person on the grounds of race, color, religion, sex, national origin,
disability, or any other ground prohibited by applicable federal or state law shall
be excluded from participation in, denied the benefits of, or otherwise be
subjected to discrimination in the use of the Leased Premises and any
improvements thereon; (2) no person on the grounds of race, color, religion, sex,
national origin, disability, or any other ground prohibited by applicable federal or
state law shall be subjected to discrimination in the construction of any
improvements on, over, or under the Leased Premises and the furnishing of
services therein; and (3) CMS shall use the Leased Premises in compliance with
all other requirements imposed by or pursuant to Title 49, Code of Federal
Regulations, Department of Transportation, Subtitle A, Office of the Secretary,
Part 21, Non -Discrimination in Federally Assisted Programs of the Department of
Transportation, effectuation of Title VI of the Civil Rights Act of 1964, and as
said regulations may be amended. CMS shall furnish its accommodations and/or
services on a fair, equal, and non-discriminatory basis to all users thereof and it
shall charge fair, reasonable, and non-discriminatory prices for each unit or
service, PROVIDED THAT CMS may be allowed to make reasonable and non-
discriminatory discounts, rebates, or other similar type of price reductions to
volume purchasers if in accordance with applicable law. In the event of breach of
any of the above non-discrimination covenants, THE AUTHORITY shall have the
right, subject to rights of cure otherwise set forth herein, to terminate this
agreement and to re-enter and repossess said Leased Premises and hold the same
as if said Agreement had never been made or issued.
P. By signing this Agreement, the contracting parties affirm, for the duration of the
Agreement, that they will not violate federal immigration law or knowingly
employ, hire for employment, or continue to employ an unauthorized alien within
the State of Alabama. Furthermore, a contracting party found to be in violation of
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this provision shall be deemed in breach of the Agreement and shall be
responsible for all damages resulting therefrom. CMS shall at the outset of its
performance under this Agreement, provide to THE AUTHORITY appropriate
documentation establishing that CMS is enrolled in the E-Verify program. During
the performance of the Agreement, CMS shall participate in the E-Verify program
and shall from time -to -time at reasonable times verify that every employee that is
required to be verified according to the applicable federal rules and regulations,
has been verified. Furthermore, if CMS engages contractors and/or
subcontractors to work on the Leased Premises, CMS shall require all such
contractors and/or subcontractors at the outset of performance under their
respective contracts, to provide to THE AUTHORITY appropriate documentation
establishing that each contractor and/or subcontractor is enrolled in the E-Verify
program. During the performance of their respective contracts, each contractor
and/or subcontractor shall participate in the E-Verify program and shall from
time -to -time at reasonable times verify that every employee that is required to be
verified according to the applicable federal rules and regulations, has been
verified.
Q. Within one year from THE EFFECTIVE DATE, CMS will improve its signage
on the Leased Premises. CMS shall have the right in accordance with
applicable law, at its own expense for construction, erection and maintenance,
to place in or on the Leased Premises a sign or signs identifying CMS. Sign(s)
and location(s) may be changed and altered from time to time with the
written approval of THE AUTHORITY, said approval not to be
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unreasonably denied or delayed. CMS, upon written request from THE
AUTHORITY, shall remove, at the CMS's expense, all lettering and signs so
erected on the Leased Premises at the expiration or sooner termination of this
Agreement.
R. Within one year from THE EFFECTIVE DATE, CMS will invest a minimum of
$850,000.00 of capital improvements (including design, engineering, building
fees and permits, construction, and equipment expenses) into the north hangar
building and the main hangar building. CMS acknowledges that any capital
improvements must be constructed in full compliance with all City of Fairhope
building, zoning, and permitting rules and regulations.
S. CMS agrees to observe all security requirements of Transportation Security
Administration 49 C.F.R. 1542 and the Airport Security Plan, as may be
applicable, and as either may, from time to time, be amended, and to take such
steps as may be necessary or directed by THE AUTHORITY to ensure that
employees, invitees, agents and guests observe these requirements.
T. Within nine months from THE EFFECTIVE DATE, THE AUTHORITY at its
own expense will repair or replace sections of metal skirting on the north hangar
and the main hangar buildings to mitigate safety, health and water problems.
U. CMS and THE AUTHORITY agree that certain areas of aircraft ramp and
taxiway area originally included in the Leased Premises will be removed from the
Leased Premises as of THE EFFECTIVE DATE. These exclusions are marked
on "Exhibit A — Modifications To The Leased Premises" at the end of this
document and incorporated herein by reference. THE AUTHORITY agrees to
12
negotiate with CMS to reduce this excluded area in exchange for a specific
commitment by CMS to build a hangar/aviation office building of at least 10,000
square feet; but this agreement to negotiate with CMS is NON-EXCLUSIVE in
conformance with requirements of the Federal Aviation Administration.
V. CMS and THE AUTHORITY agree that certain areas of vehicle parking
originally included in the Leased Premises will be added or deleted from the
Leased Premises as of THE EFFECTIVE DATE. These additions or deletions are
marked on "Exhibit A — Modifications To The Leased Premises" at the end of this
document and incorporated herein by reference.
Section 4: Additional Mutual Proiects
CMS and THE AUTHORITY mutually agree they will make best good faith efforts to
successfully complete these additional projects.
A. Improve secured access, fencing, gates, lights, and other security features at THE
/_11I71�7'�IM
B. Promote THE AIRPORT, the City of Fairhope, and the Eastern Shore as a
"destination point" for both tourism and corporate relocation.
C. Widen and otherwise improve the access road south of the fuel farm.
Section 5: Openness
It is not required that anything about THIS LEASE be kept confidential. Disclosure of its
terms and conditions may be made to anyone. CMS and THE AUTHORITY recognize
13
that disclosure must to be made to a wide variety of entities, including without limitation
potential lenders, the Federal Aviation Administration, the Alabama Department of
Transportation, and various civil authorities. THE AUTHORITY may be covered by the
Alabama Open Meetings Act, ALA.CODE §36-25A-1 et seq., which in general requires
openness except and unless, as CMS or THE AUTHORITY might individually decide
upon advice of counsel or otherwise, for later discrete instances in strict complete
compliance with the terms of the Alabama Open Meetings Act or other pertinent laws.
Section 6. Brokers or Finders Fees
If either CMS or THE AUTHORITY has engaged a broker or finder regarding this
Agreement, then any liability for or involving a broker or finder regarding this
Agreement rests exclusively on the party which engaged any such brokers or finders.
Section 7. Subordination
This Agreement shall be subordinate to future Fairhope Airport Authority Bond
Resolutions. This Agreement shall also be subject to and subordinate to agreements
between the City of Fairhope (as previous owner of THE AIRPORT and as current
sponsor of THE AIRPORT), and State and Federal agencies for grants-in-aid and to the
provisions of any agreements heretofore made between the City of Fairhope and the
United States, relative to the operation or maintenance of THE AIRPORT, the
execution of which has been required as a condition precedent to the transfer of federal
rights of property to the City of Fairhope for Airport purposes, or to the expenditure of
federal funds for the extension, expansion, or development of THE AIRPORT,
14
including the expenditure of federal funds for the development of THE AIRPORT in
accordance with the provisions of the Federal Airport Act of 1958, as it has been
amended from time to time.
Section 8. Surrender of Leasehold Improvements
Upon the expiration or sooner termination of this Agreement, for any reason whatsoever,
CMS shall peaceably surrender to THE AUTHORITY possession of the Leased Premises
and any improvements, alterations, and additions; and, without any compensation
whatsoever, and free and clear of any claims or interests of CMS or of any mortgages or
any other third party whose position was derived from or through CMS. If any of said
Leased Premises and improvements, alterations, and additions is encumbered by a
mortgage or lien at the time of expiration or sooner termination of this Agreement, CMS
shall be responsible for eliminating said mortgage or lien and shall hold THE
AUTHORITY harmless therefrom.
Section 9. Protection of THE AIRPORT From Leasehold Improvements
THE AUTHORITY reserves unto itself, its successors and assigns, for the use and
benefit of the public, a right of flight for the passage of aircraft in the airspace above the
surface of the Leased Premises, together with the right to cause in said airspace such
noise as may be inherent in the operation of aircraft, now known or hereafter used, for
navigation of or flight in the said airspace, and for use of said airspace for landing on,
taking off from or operating on THE AIRPORT.
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CMS shall not erect or permit the erection or growth of, or permit to remain in or on the
Leased Premises, any structure, natural growth or other object extending into the airspace
above the Leased Premises higher than as permitted in Federal Aviation Regulation Part
77 as such regulation may be amended from time to time.
CMS shall not use or permit the use in or on the Leased Premises in such a manner as to
create electrical or electronic interference with communications between THE
AIRPORT and aircraft, or between aircraft and any navigational controls, whether or not
located on THE AIRPORT.
CMS shall not erect, install or permit the erection or installation in or on the Leased
Premises of any lights that will or might make it difficult for aircraft pilots to
distinguish between THE AIRPORT lights and other lights, or that will or might impair
visibility or otherwise endanger the landing, taking off, or maneuvering of aircraft.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]
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Section 10. Notices
Any notices required by THE LEASE must be served by hand delivery or certified mail
or overnight courier service upon CMS and THE AUTHORITY at the addresses:
FAIRHOPE AIRPORT AUTHORITY
ATTENTION: CHAIRMAN
P. O. Box 429 161 N. Section St.
Fairhope, AL 36533 Fairhope, AL 36532
[If by U. S. mail] [If by hand delivery or Fedex/UPS]
CONTINENTAL MOTORS SERVICES INC.
ATTENTION: PRESIDENT
2039 Broad St.
Mobile, AL 36615
Section 11. Recordation of THE LEASE
So that this Agreement may be recorded, CMS and THE AUTHORITY agree to make
any changes in language, notations, and signatures as may reasonably be required for
such purpose.
Section 12. Entire Agreement
Except for that lease dated June 28, 1995 by and between the City of Fairhope, by and
through its Fairhope Airport Board (the City's rights to which have been succeeded to by
17
THE AUTHORITY), and Teledyne Industries, Inc. (Teledyne Industries, Inc.'s ri hg is to
which have been succeeded to by CMS), together with those certain Amendments (First
through Fifth) and that certain Letter Agreement (dated April 5, 2005) and that certain
Final Lease Extension (dated December 1, 2010), for that certain premises at THE
AIRPORT, this Agreement, together with all exhibits hereto, constitutes the entire
Agreement and understanding between CMS and THE AUTHORITY with respect to the
Leased Premises, and supersedes all negotiations, prior discussions, letters of intent,
memorandums of understanding, and preliminary agreements. This Agreement may
not be amended except by a writing executed by both CMS and THE AUTHORITY.
Section 13. Partial Invalidity
If any term or condition of this Agreement or application thereof to any person or event
shall to any extent be invalid and unenforceable, the remainder of this Agreement and the
application of such term, covenant, or condition to persons or events other than those to
which it is held invalid or unenforceable shall not be affected and each term, covenant
and condition of this Agreement shall be valid and be enforced to the fullest extent
permitted by law.
Section 14. Relationship of the Parties
It is understood and agreed that THE AUTHORITY is not in any way or for any
purpose a partner or joint venturer with, or agent of, CMS in the use of the Leased
Premises or any improvements thereon, for any purpose.
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Section 15. Headings
The headings contained in this Agreement are inserted only as a matter of convenience
and for reference and do not define or limit the scope or intent of any provisions of this
Agreement and shall not be construed to affect in any manner the terms and provisions
hereof or the interpretation or construction thereof.
Section 16. Governing Law
In the event of any litigation between or involving THE AUTHORITY and CMS, of
any kind concerning or involving this lease, which of course no one expects or wants,
the parties agree that it will take place only in the Circuit Court for Baldwin County,
Alabama and not in any other location or Court..
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]
WE
IN WITNESS WHEREOF, the parties hereto have signed this instrument.
FAIRHOPE AIRPORT AUTHORITY
58.2
Charles R. Zunk
Its: Chairman
Date:
ATTEST:
I hereby certify that Charles R. Zunk, who is
known to me, who signs as Chairman of
Fairhope Airport Authority, is Chairman of
Fairhope Airport Authority and, in that
capacity, is authorized to sign this
agreement.
David A. Bagwell
P.O. Box 2126
Fairhope, AL 36533
Its: Lawyer
This Instrument was Prepared by:
David A. Bagwell
Lawyer
P.O. Box 2126
Fairhope, AL 36533
Telephone 251.928.2970
e-mail: davidra?bagwellesq.com
CONTINENTAL MOTORS
SERVICES, INC.
By:
Rhett Ross
Its: President
Date:
ATTEST:
I hereby certify that Rhett Ross, who is
known to me, who signs as President of
Continental Motor Services, Inc., is
President of Continental Motor Services,
Inc.
Stephen Ginger
Senior Vice President and General Counsel
Continental Motors Group
EXHIBIT A
MODIFICATIONS TO THE LEASED PREMISES
21
EXHIBIT A -- MODIFICATIONS TO THE LEASED PREMISES
NOTE: THE LEASED PREMISES ARE NOW THOSE SEVEN AREAS EDGED WITH RED INK.
I
I
1
1
1
1
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3'11" E
EXHIBIT B
MIMIMUM STANDARDS
V
.....
...... ....
7
. ...... -------
Sonny Callahan Airport - Minimum Standards
For Commercial Aeronautical Activities
5/20/2014
. .. ........
FAIRHOPE AINH&PORT
A U T H 0 R I T Y 71
. . ....... ......
. ... ......
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..... . .....
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'71
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F
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Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
Table of Contents
Content Page
Introduction...................................................................... 3
Section 1 Purpose of Minimum Standards
a) Compliance with FAA Advisory Circular 150/5190-7.................4
b) Assurance against Exclusive Rights......................................5
c) Promotion of Safe and High Quality Aviation Services...............6
d) Special Events...............................................................6
Section 2 Definitions and Applicability
a) Definitions....................................................................7
b) Application of Minimum Standards......................................10
c) Activities Not Covered by Minimum Standards ........................10
d) Waivers or Modifications..................................................11
Section 3 Authority of Fairhope Airport Authority
a) Airport Ownership..........................................................12
b) Administrative Responsibilities..............................................12
c) Minimum Standards Review, Revisions, and Amendments .......... 13
d) Enforcement, Right to Enter and Inspection Authority................13
Section 4 Business Operations
a) Employee Conduct and Customer Service Emphasis..................14
b) Management Control and Supervision....................................14
c) Personnel Training and Certification......................................14
d) Corporate Identification Requirement....................................14
e) Interference with Utilities....................................................15
Section 5 Minimum Standards for Fixed Base Operators (FBOs)
a) Primary Aeronautical Services.............................................16
b) Aircraft Design Group Serviceability .......................................16
c) Leasehold Size................................................................16
d) Hours of Operation...........................................................17
e) Staffing and Employee Qualifications.....................................17
f) Insurance Requirements......................................................18
g) Primary FBO Services.......................................................19
h) Secondary FBO Services....................................................22
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
Section 6 Minimum Standards for Specialized Aviation Service Operations (SASOs)
a)
General Requirements.......................................................26
b)
Fueling.........................................................................27
c)
Airframe and Powerplant Maintenance....................................27
d)
Flight Training................................................................27
e)
Air Charter or Air Taxi or Aircraft Management
........................28
0
Aircraft Rental................................................................28
g)
Avionics Maintenance and Sales...........................................28
h)
Aircraft Storage and Hangars...............................................28
i)
Aircraft Sales..................................................................28
j)
Aircraft Restoration and Refurbishing.....................................28
k)
Specialized Flying Services.................................................28
Section 7 Flying Clubs
a) Purpose........................................................................29
b) Requirements.................................................................29
c) Restrictions...................................................................29
d) Aircraft Maintenance........................................................29
Section 8 Commercial Operator Permits
a) Introduction...................................................................31
b) Permit/Approval..............................................................31
c) Reporting......................................................................31
Section 9 Exhibits and Attachments
A. Airport Layout Plans and/or Property Maps
B. Lease Application/Alteration/Denial Details
C. Airport Minimum Insurance Requirements
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
INTRODUCTION
Fairhope Airport Authority, hereinafter referred to as "Authority", being a public
corporation created under Title 4, Chapter 3, Article 2 of the Code of Alabama (1975), and
pursuant to the Laws of the State of Alabama, owns and operates a public airport known as
H. L. "Sonny" Callahan Airport, hereinafter referred to as "Airport", in Fairhope, Alabama.
Anyone wishing to comment on these Minimum Standards may contact the Authority at
P.O. Box 429, Fairhope, AL, 36533.
The requirements of standards imposed on those proposing to conduct an aeronautical
activity on any public airport should relate to safety, security and the public interest. As
building codes and sanitary codes are enacted for the protection of the local community,
airport standards should be designed to protect airport patrons from irresponsible, unsafe,
and inadequate services. Because the cost of meeting reasonable standards must be
accepted as a normal business expense, no prudent operator will undertake the investment
involved unless he foresees a volume of business that has not been fully developed. Thus,
the use of reasonable standards, while safeguarding the public interest, has the effect of
preserving the stability of an established business. Proper standards discourage the
unqualified, for both the protection of the public and the established operator. The fairness
and reasonableness of the standards normally is judged against the background of general
practices, which have found acceptance at public airports of comparable size and situation.
These Minimum Standards are intended to provide the minimum threshold entry
requirements for those wishing to provide commercial aeronautical services to the public at
the Airport. Any prospective aeronautical service provider must agree to offer the minimum
level of services in order to obtain an agreement, license, permit and/or lease to operate on
the Airport.
The owner or sponsor of a federally -obligated airport agrees to make the opportunity to
engage in commercial aeronautical activities available to any person, firm, or corporation
(hereinafter, "Operator") that meets reasonable minimum standards; in exchange for this
opportunity, the Operator agrees to comply with those minimum standards, which then
become a mandatory component of the agreement between airport owner/sponsor and
Operator.
To that end, the Authority has established these particular Minimum Standards for the
Airport, and will apply them objectively and uniformly to all similarly situated on -airport
commercial aeronautical activities and standards. The Authority intends that these
Minimum Standards for the Airport comply with Federal Aviation Administration
(hereinafter, "FAA") guidelines.
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Minimum Standards for Commercial Aeronautical Activities
K L. "Sonny" Callahan Airport
SECTION 1
PURPOSE OF MINIMUM STANDARDS
La Compliance with FAA Advisory Circular 150/5190-7
The Authority owns and operates Airport, a commercial service public airport. The
Authority and the Airport's previous owner and current sponsor, the City of Fairhope,
Alabama, have received in the past, and reasonably expect to receive in the future,
Federal and State airport development assistance funding which includes contractual
grant obligations including but not limited to compliance with FAA Advisory Circular
150/5190-7 Minimum Standards for Commercial Aeronautical Activities effective August
28, 2006.
The purpose of these Minimum Standards is to:
• Promote safety;
• Promote the economic health of Airport businesses;
• Promote the orderly development of Airport property;
• Encourage high quality products, services, and facilities for Airport users;
• Promote economic nondiscrimination.
Minimum Standards are developed to provide the minimum threshold entry
requirements for those Operators desiring to provide commercial aeronautical services to
the public at the Airport and to provide reasonable opportunities without discrimination,
economic or otherwise. These Minimum Standards are established based upon the
conditions at the Airport, the existing and planned facilities at the Airport, and the current
and future aviation role of the Airport. Each prospective commercial aeronautical
Operator shall agree to offer the described minimum levels of services in order to obtain
an agreement, permit, license, and/or lease to operate at the Airport. In summary, the
Airport's Minimum Standards establish the minimum requirements to be met by
Operators for the privilege of providing commercial aeronautical services at the Airport.
All Operators are encouraged to exceed the "minimum" in terms of quality of facilities
and/or services.
The Authority shall make any required determinations, interpretations, or judgments
regarding what constitute an acceptable minimum standard, and what constitutes
compliance with such standard. Aeronautical activities that do not fall within the
categories herein may be proposed, and in such cases the appropriate minimum standards
shall be developed by the Authority on a case -by -case basis and incorporated into the
Operator's agreement.
These Minimum Standards shall apply to all new agreements and any extension of the
tern of existing agreements. These Minimum Standards are not retroactive and do not
affect agreements properly executed prior to the adoption of these Minimum Standards.
Additionally, if an Airport Operator desires to modify the terms of service within an
existing agreement, the Authority shall as a condition of its approval, require compliance
with the then -current Minimum Standards. These Minimum Standards shall not modify
4
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
an existing agreement, which is required to exceed these Minimum Standards, nor shall
they prohibit Authority from entering into an agreement that requires an Operator to
exceed these Minimum Standards.
Lb Assurance Against Exclusive Rights
I.b.i Federal Aviation Administration Policy
The FAA policy on Exclusive Rights prohibits the creation or continuance of
agreements granting exclusive rights to a single commercial operator or service
provider. The FAA concludes that the existence of an "exclusive right"
aeronautical activity or local monopoly at an airport restricts the public use of the
airport through the absence of competitive enterprise.
The Authority is prohibited from granting an exclusive right to a single Operator
at the Airport, with few exceptions. The Airport Master Plan development and
improvement funding assistance could be jeopardized by either an intentional or
unintentional exclusive rights violation.
l.b.ii Some Exceptions to the Exclusive Rights Rule
The FAA acknowledges several business situations and circumstances that meet
the definition of an exclusive rights violation but are necessary to support the
operation and public use function of the Airport. Some, but not necessarily all, of
these exceptions are:
Aeronautical Activities Conducted by Airport Owner/Sponsor: The
Authority has the option to provide some of the aeronautical activities that
private enterprise cannot or will not provide to the public in order to
sustain Airport services. This exception is referred to as proprietary
exclusive.
Single Activity: The absence of competition alone is not an exclusive
rights violation. Due to airport activity, market demand, or other
economic factors some commercial aeronautical services might only be
provided by a single Operator even though reasonable Minimum
Standards and competitive opportunities exist.
Space Limitation: The Authority may prohibit a single FBO from
expanding its facility to preserve land needed for a competitive FBO to
operate from the same Airport. The Authority has the option of not
providing an incumbent FBO any future development options or site
preferences. Also, the Authority has the option to allow an incumbent
FBO to compete with all other qualified bidders for Authority -owned
premises that become available for aeronautical activity.
Restrictions Based on Safety: The Authority may restrict or deny an
Operator from conducting any type of aeronautical activity on the Airport
that threatens the safety/security of the public, tenants, users, or the
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
Operator itself conducting such activity. The Authority will review the
proposed activity and provide facts and reasoning for any proposed
restriction or denial of aeronautical activity to the FAA, whose judgment
and opinion will be relied upon by the Authority for its final decision in
the matter.
• Restrictions on Self -Service: The Authority allows aircraft owners who
are based at the Airport to refuel, maintain, repair, store, secure, clean, and
service their own aircraft provided the owner or its employees perform the
service and provide the resources in accordance with FAA Advisory
Circulars and regulations. All self-service activities must comply with
Federal, State, and local regulations, especially environmental and fire
safety laws. The Authority is not obligated to lease facilities to aircraft
owners in order to conduct self-service activities; however, the Authority
may designate specific locations for fueling, maintenance, washing, and
storing of aircraft to promote the safe and efficient operation of the
Airport. Moreover, the service must be conducted in accordance with
reasonable rules or standards established by the Authority.
• Monopolies Beyond Airport Owner/Sponsor's Control: Since the Federal
Communication Commission (hereinafter, "FCC") will issue only one
UNICOM station license per airport, the FAA acknowledges that
UNICOM is an exclusive franchise that exists to provide air -to -ground
communications for the public benefit. The exclusive UNICOM franchise
does not violate the FAA exclusive rights agreement.
Le Promotion of Safe and High Quality Aviation Services
The Airport is an important component of the area's overall transportation network,
economic growth, and quality of life. So, in addition to the Federal Grant Assistance
obligations, the Authority has established these Minimum Standards to foster safe,
efficient, and high quality commercial aeronautical services for the Airport users, tenants,
and Operators.
l.d Special Events
Special events (such as air shows, competitive flying meets, static displays, exhibitions,
etc.) shall not be held on the Airport without prior written permission from the Authority.
0
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 2
DEFINITIONS AND APPLICABILITY
2.a Definitions from FAA Advisory Circular 150/5190-7
a. Aeronautical Activity. Any activity that involves, makes possible, or is
required for the operation of aircraft or that contributes to or is required for the safety
of such operations. Activities within this definition, commonly conducted on airports,
include, but are not limited to, the following: general and corporate aviation, air taxi
and charter operations, scheduled and nonscheduled air carrier operations, pilot
training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial
advertising and surveying, aircraft sales and services, aircraft storage, sale of aviation
petroleum products, repair and maintenance of aircraft, sale of aircraft parts,
parachute or ultralight activities, and any other activities that, because of their direct
relationship to the operation of aircraft, can appropriately be regarded as aeronautical
activities. Activities, such as model aircraft and model rocket operations, are not
aeronautical activities.
b. Airport. An area of land or water that is used, or intended to be used, for aircraft
takeoff and landing. It includes any appurtenant areas used, or intended to be used, for
airport buildings or other airport facilities or rights -of -way, together with all airport
buildings and facilities located thereon. It also includes any heliport.
c. Airport District Office (ADO). These FAA offices are outlying units or extensions of
regional airport divisions. They advise and assist airport sponsors with funding requests
to improve and develop public airports. They also provide advisory services to the owners
and operators of both public and private airports in the operation and maintenance of
airports. See the FAA Web site for a complete listing of all ADO offices
at http://w-�vw.faa.gov/airports airtraffic/airports/regional guidance/.
d. Airport Sponsor. The airport sponsor is either a public agency or a private owner
of a public -use airport that submits to the FAA an application for financial assistance
(such as AIP grants) for the airport. In accepting an application for financial
assistance, the FAA will ensure that the airport sponsor is legally, financially, and
otherwise able to assume and carry out the certifications, representations, warranties,
assurances, covenants and other obligations required of sponsors, which are contained
in the AIP grant agreement and property conveyances.
e. Commercial Self -Service Fueling. A fueling concept that enables a pilot to fuel
an aircraft from a oon menial fuel pump installed for that purpose by an FBO or the
airport sponsor. The fueling facility may or may not be attended.
f. Exclusive Right. A power, privilege, or other right excluding or debarring
another from enjoying or exercising a like power, privilege, or right. An exclusive
right can be conferred either by express agreement (i.e. lease agreement), by
the imposition of unreasonable standards or requirements, or by any other means.
Such a right conferred on one or more parties, but excluding others from enjoying or
exercising a similar right or rights, would be an exclusive right.
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
g. Federal Airport Obligations. All references to a Federal grant program, Federal
airport development assistance, or Federal aid contained in this AC are intended to
address obligations arising from the conveyance of land or from grant agreements
entered under one of the following acts:
(1) Surplus Property Act of 1944 (SPA), as amended, 49 U.S.C. §§ 47151-47153.
Surplus property instruments of transfer were issued by the War Assets
Administration (WAA) and are now issued by its successor, the General
Services Administration (GSA). However, the law imposes upon the FAA
(delegated to FAA from The Department of Transportation) the sole
responsibility for determining and enforcing compliance with the terms and
conditions of all instruments of transfer by which surplus airport property is or
has been conveyed to non- Federal public agencies pursuant to the SPA. 49
U.S.C. § 47151(b).
(2) Federal Aid to Airports Program (FAAP). This grant-in-aid program
administered by the agency under the authority of the Federal Airport Act of
1946, as amended, assisted public agencies in the development of a nationwide
system of public airports. The Federal Airport Act of 1946 was repealed and
superseded by the Airport Development Aid Program (ADAP) of 1970.
(3) Airport Development Aid Program (ADAP). This grant-in-aid program
administered by the FAA under the authority of the Airport and Airway
Development Act of 1970, as amended, assisted public agencies in the
expansion and substantial improvement of the Nation's airport system. The
1970 act was repealed and superseded by the Airport and Airway
Improvement Act of 1982 (AAIA).
(4) Airport Improvement Program (AIP). This grant-in-aid program
administered by the FAA under the authority of the Airport and Airway
Improvement Act of 1982, 49 U.S.C. § 47101, et seq., assists in maintaining a
safe and efficient nationwide system of public -use airports that meet the present
and future needs of civil aeronautics.
h. Federal Grant Assurance. A Federal grant assurance is a provision within a
Federal grant agreement to which the recipient of Federal airport development
assistance has agreed to comply in consideration of the assistance provided. Grant
assurances are required by statute, 49 U.S.C. §47101.
i. Fixed -Base Operator (FBO). A commercial business granted the right by the
airport sponsor to operate on an airport and provide aeronautical services such as
fueling, hangaring, tie -down and parking, aircraft rental, aircraft maintenance, flight
instruction, etc.
j. Fractional Ownership. Fractional ownership operations are aircraft operations
that take place under the auspices of 14 CFR Part 91 Subpart K. This type of operation
offers aircraft owners increased flexibility in the ownership and operation of aircraft
including shared or joint aircraft ownership. It provides for the management of the
aircraft by an aircraft management company. The aircraft owners participating in the
program agree not only to share their own aircraft with others having a shared
interest in that aircraft, but also to lease their aircraft to other owners in the program
8
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
(dry lease exchange program). [A dry lease aircraft exchange means an arrangement,
documented by the written program agreements, under which program aircraft are
available, on an as needed basis without crew, to each fractional owner.] A fractional
owner or owner means an individual or entity that possesses a minimum fractional
ownership interest in a program aircraft and that has entered into the applicable
program agreements. For additional information, please see 14 CFR 91.1001
Applicability at 11ttp://www.access.no.izov/nara/cfi-/waisidx 04/14cfr91 04.httnl and
contact your local Flight Standards District Office.
k. Grant Agreement. A Federal grant agreement represents an agreement made
between the FAA (on behalf of the United States) and an airport sponsor for the grant of
Federal funding.
1. Public Airport. Means an airport open for public use that is publicly owned and
controlled by a public agency.
m. Public -Use Airport. Means either a public airport or a privately owned airport
open for public use.
n. Specialized Aviation Service Operations (SASO). SASOs are sometimes
known as single- service providers or special FBOs performing less than full services.
These types of companies differ from a full service FBO in that they typically offer
only a specialized aeronautical service such as aircraft sales, flight training, aircraft
maintenance, or avionics services for example.
o. Self -Fueling and Self -Service. Self -fueling means the fueling or servicing of
an aircraft (i.e. changing the oil, washing) by the owner of the aircraft with his or her
own employees and using his or her own equipment. Self -fueling and other self-
services cannot be contracted out to another party. Self -fueling implies using fuel
obtained by the aircraft owner from the source of his/her preference. As one of many
self-service activities that can be conducted by the aircraft owner or operator by his or
her own employees using his or her own equipment, self -fueling, differs from using a
self-service fueling pump made available by the airport, an FBO, or an aeronautical
service provider. The use of a self-service fueling pump is a commercial activity and
is not considered self -fueling as defined herein. In addition to self -fueling, other self-
service activities that can be performed by the aircraft owner with his or her own
employees includes activities such as maintaining, repairing, cleaning, and otherwise
providing service to an aircraft, provided the service is performed by the aircraft owner
or his/her employees with resources supplied by the aircraft owner.
p. Through -the -Fence Operations. Through -the -fence operations are those activities
permitted by an airport sponsor through an agreement that permits access to the public
landing area by independent entities or operators offering an aeronautical activity or to
owners of aircraft based on land adjacent to, but not a part of, the airport property. The
obligation to make an airport available for the use and benefit of the public does not
impose any requirement for the airport sponsor to permit ground access by aircraft from
adjacent property.
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
2.b Application of Minimum Standards
a. General Operating Requirements. Any Operator conducting commercial
aeronautical activities at the Airport shall, as a condition of conducting such activities,
comply with all requirements set forth in these Minimum Standards and any amendments
thereto. The Minimum Standards are the "minimum" requirements to do business on the
Airport, and all Operators are encouraged to exceed such minimums in conducting their
respective activities. These Minimum Standards shall be deemed to be a part of each
commercial Operator's Airport lease, license, permit, or agreement with the Authority,
unless any such provisions are waived or modified in writing by the Authority. The mere
omission of any particular standard from a commercial Operator's written lease, license,
permit, or agreement with the Authority shall not constitute a waiver or modification of
such standard in the absence of clear and convincing evidence that the Authority intended
to waive or modify such standard. The Authority shall be the sole judge of whether an
aeronautical activity at the Airport is, or is not, "commercial", consistent with regulations
of the FAA.
b. Existing Operators. The Authority will "grandfather" the existing commercial
Operators into this revision of Minimum Standards. However, any subsequent changes to
an existing written lease, license, permit, or agreement with the Authority, including but
not limited to assignment, renewal, expiration, or ownership change may at the discretion
of the Authority render the current Minimum Standards a requirement for the existing
Operator.
c. Multiple Services. Whenever a commercial Operator, subject to these Minimum
Standards, conducts multiple activities pursuant to one lease, license, permit, or
agreement with the Authority, such commercial Operator shall comply with the
Minimum Standards for each separate activity or SASO being conducted. If the
Minimum Standards for one of the commercial Operator's activities are inconsistent with
the Minimum Standards for another of the commercial Operator's activities, then the
Minimum Standards which are most beneficial to the Authority, and/or which are most
protective of the public's health, safety and welfare, shall apply, or may be waived at the
discretion of the Authority. When one or more activity is conducted, the minimum
requirements shall vary depending on the nature of each activity and/or combination of
activities, but shall not necessarily be cumulative. The Authority will make the final
determination based on the benefits to the airport users, and based on the available space
and/or existing improvements.
2.c Activities Not Covered by Minimum Standards
Any activities for which there are no specific Minimum Standards established will be
addressed by the Authority on a case -by -case basis and set forth in such commercial
Operator's written lease, license, permit, or agreement with the Authority.
10
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
2.d Waivers or Modifications
The Authority may waive or modify any portion of these Minimum Standards for the
benefit of any governmental agency performing non-profit public services, fire
protection, or emergency response operations. The Authority may waive or modify any
portion of these Minimum Standards for any Operator when the Authority determines
that such waiver or modification is in the best interest of the public and will not result in
unjust economic discrimination against other commercial Operators at the Airport.
Any request for a waiver or modification from a commercial Operator must state
specifically the primary guiding document and the provision for which the waiver or
modification is being sought, describe the proposed waiver or modification specifically,
state the reason or rationale for the waiver or modification, and identify the duration of
the proposed waiver or modification. The Authority will consider only written requests,
and shall respond to the requestor in writing.
Any variance or modification approved by the Authority shall apply only to the special
conditions and unique circumstances of the particular case under which the waiver or
modification is granted and shall not serve to amend, modify, or alter the primary guiding
document and/or Minimum Standard. The waiver or modification expires upon the
soonest of 1) when the special conditions or unique circumstances of the particular case
are no longer applicable; or 2) when the expiration date specified in the Authority's
written approval has occurred; or 3) when there occur subsequent changes to the
commercial Operator's existing written lease, license, permit, or agreement with the
Authority, including assignment, renewal, expiration, or ownership change.
11
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 3
AUTHORITY OF THE FAIRHOPE AIRPORT AUTHORITY
3.a Airport Ownership/Sponsorship
The Authority owns and operates the Airport. The City of Fairhope, Alabama, (City) is a
major funding source of Airport. As such, both the Authority and the City are public
agencies with control of a public -use airport, meeting the FAA definition of "Sponsor";
The Authority's goals include developing aviation as an integral part of the region's
transportation network; creating and implementing strategies to protect and improve the
area's aviation system; encouraging aviation -related economic development; supporting
aviation safety and education; and increasing aviation activities on the Eastern Shore.
3.b Administrative Responsibilities
a. Administrative Roles. The Authority may perform acts; adopt, amend, or issue
orders, rules and regulations; and make, promulgate, or amend Minimum Standards as
necessary to ensure that:
• Any Operator using Airport property or facilities shall compensate the Authority
at fair market value (fair market rent) for such use and privileges.
• No Operator shall receive a competitive advantage through free or less -than -fair
market value (rent) utilization of Airport facilities for which other comparable
commercial Operators are compensating the Authority at fair market value (rent)
for substantially the same use, except for terms and conditions of existing
agreements that originated at different times that are not yet updated or modified
through expiration of term, amendment, assignment, extension or other
adjustment provision.
• Airport public areas, roads, taxiways, runways, and aprons shall remain safe,
available and open for public aeronautical use on a non-discriminatory basis and
in compliance with appropriate standards.
b. Commercial Activity Authorization. When the Authority determines that an
Operator is engaged or proposes to engage in commercial activity at the Airport, the
Authority may grant that Operator permission to do so, may issue that Operator a permit
with restrictions or conditions, may require the Operator to enter into an agreement with
the Authority, or may deny such permission. The Authority will consider the following
criteria in determining if a commercial aeronautical activity is authorized to be conducted
on the Airport:
i. The terms and conditions of any pre-existing agreements with commercial
Operator(s) at the Airport providing comparable services.
ii. The impact of the new commercial activity on public safety and convenience.
The Authority will impose conditions and restrictions necessary to ensure safety
in the air and on the ground, and to preserve unobstructed traffic patterns and
runway approaches.
12
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
iii. The amount of space available at the Airport, the customary uses of the Airport,
and the compatibility of the new commercial activity with present and planned
development at the Airport.
iv. The manner in which the new commercial activity complies with Federal, State,
and local laws and regulations, including land use provisions and storm water
management.
V. Whether the new commercial activity is conducted for profit, or for non-profit
promoting aviation, safety, or educational purposes.
Refer to Attachment B in this document for application information, and a list of reasons
for which such application may be denied.
3.c Minimum Standards Review. Revisions. and Amendments
The Authority from time to time may conduct a review of the Minimum Standards and
based upon such review may elect to revise and/or amend the Minimum Standards.
Reasons for such review include but are not limited to changes in Airport business,
changes in the regulatory environment, new FAA or Alabama Aeronautics Bureau
guidance, changes in environmental conditions, or to correct errors, omissions, or
inconsistencies in the Minimum Standards currently in effect.
3.d Enforcement, Right To Enter, and Inspection Authority
a. Enforcement. The intention of the Authority is to provide consistent, uniform, fair,
and reasonable enforcement of these Minimum Standards.
b. Right To Enter and Inspection Authority. The Authority through its designated
representatives has the right to enter the Authority -owned Airport property, leasehold, or
business of any commercial Operator to inspect the facilities during normal business
hours or upon any event or emergency basis which could be detrimental to the safety or
health of the general public or which could result in damage or injury to the Authority,
and to ensure that the commercial Operator is complying with the Minimum Standards.
The Authority will make reasonable effort not to disrupt normal business during such
inspections.
c. Conflicting Regulatory Measures and Agreements. If a provision in these
Minimum Standards is found to be in conflict with a provision of any other governing
document, agreement, or regulatory measure, the provision that establishes the higher
standard (the most stringent or restrictive) shall prevail. Nothing in these Minimum
Standards shall be interpreted to repeal, abrogate, annul, or in any way impair or interfere
with any regulatory measure.
13
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 4
BUSINESS OPERATIONS
4.a Employee Conduct and Customer Service Emphasis
The Authority works diligently to provide high quality services to the growing needs and
requests of airport users; as such, the Authority requires its commercial Operators,
businesses, and tenants to do the same.
4.b Management Control and Supervision
Each commercial Operator is required to employ the necessary quality of trained staff,
on -duty management and supervisors to provide for the efficient, safe, and orderly
compliance with its lease, license, agreement, or permit obligations. In addition, each
Operator is required to control the conduct and demeanor of its personnel and subtenants,
as well as to conduct its business operations in a safe, orderly, efficient and proper
manner so as not to unreasonably disturb, endanger or offend any customers, tenants, or
competitive Operators.
4.c Personnel Training and Certification
All commercial Operator personnel shall be fully qualified and trained or be in training
with supervision, to provide a high quality standard of courteous, efficient, and safe
service to the general public, customers, and airport users. Personnel shall meet all
Federal, State, local and/or professional training and certification requirements applicable
to their individual duties and company services.
4.d Corporate Identification Reauirement
a. Personnel. All personnel employed by the Operator to perform commercial
aeronautical services on the Airport are required to be appropriately dressed and
identifiable while on duty. The commercial Operator's business name shall be included
in the means of identification on each person.
b. Buildings, Vehicles, and Equipment. Each building, vehicle, and piece of mobile
or vehicular equipment used on the Airport in conjunction with the commercial activity
shall bear the Operator's identification in the form of a company logo, sign, emblem, or
other means to designate the Operator to whom the building, vehicle, or equipment is
assigned. Identification shall be legible with a contrasting background and displayed in a
manner that is acceptable to the Authority.
c. Higher Standard. Of any relevant Federal requirements for Corporate Identification
Requirements, and the provisions of sub -sections "a" and "b" above, the higher standard
shall prevail.
14
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
4.e Interference with Utilities and Communications
No Operator shall do or permit to be done anything that may interfere with the
effectiveness or accessibility of the Airport or any public utility system, private utility
system, communications system, video or other surveillance system, drainage system,
sewer system, fire protection system, sprinkler system, alarm system, or fire hydrant. If
an Operator discovers any such interference or potential interference, the Operator has a
positive obligation and requirement to notify both the Authority and the appropriate
system owner or fire department immediately.
15
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 5
MINIMUM STANDARDS FOR FIXED BASE OPERATORS
5.a Primary Aeronautical Services
A Fixed Base Operator (FBO) is an entity engaged in the business of providing multiple
commercial aeronautical services to aircraft and airport users. In addition to the primary
aircraft fueling and aircraft line services and aircraft airframe and powerplant
maintenance (described in Section 5.g), an FBO at the Airport shall provide a minimum
of two (2) of the following secondary FBO services (described in Section 5.h). FBOs
shall be permitted to provide fueling services and to operate fueling facilities at the
Airport for both fixed and rotary wing aircraft.
Each FBO may subcontract or use third -party operators to provide aircraft maintenance
and any of the secondary services, subject to agreement(s) approved in advance by the
Authority. Subcontractors and third -party operators shall meet all Minimum Standards
and operate from the primary FBO leasehold premises in areas approved by the
Authority.
Each FBO shall conduct its business and activities on and from the leasehold premises in
a safe and professional manner consistent with the degree of care and skill exercised by
experienced FBOs providing comparable products, services, and activities from similar
airports in like markets.
The Authority, the FAA, the TSA, and/or the Alabama Bureau of Aeronautics may
periodically conduct inspections of any or all FBO activities and facilities to ensure
compliance with laws, regulations, leasehold agreements, and Minimum Standards.
Additionally, other governmental agencies may from time to time conduct inspections of
specific FBO activities and facilities within the agencies' jurisdiction. Each FBO has a
positive obligation to cooperate fully with any such inspection, and to remedy any defects
identified in the inspection.
5.b Aircraft Design Group Serviceability
Each FBO shall provide the personnel, equipment, and facilities required to service all
types of general aviation aircraft normally frequenting the Airport, up to and including
Airport Reference Code (ARC) C II — wingspan up to 79 feet and tail height up to 30
feet.
5.c Leasehold Size
a. Leaseholds and Buildings in Total. Each FBO shall lease from the Authority a
minimum of 180,000 square feet in total, of which no less than 120,000 square feet shall
be ramp space, no less than 3,000 square feet shall be a public use terminal building, and
no less than 27,000 square feet shall be hangar space for aircraft storage/maintenance.
16
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
b. Ramp Space. The ramp space shall be used for aircraft parking, and transit
to/from the FBO. Ramp space may be paved or unpaved (for those aircraft designed to
taxi on unpaved grassy areas), but only paved ramp space shall count toward the 120,000
square feet minimum.
c. Public Use Terminal Building. Each FBO shall lease or construct a public use
terminal building (Terminal) of no less than 3,000 square feet with appropriate
accommodations for customer lobby, pilot lounge, flight planning and briefing
area, administrative offices, public restrooms, general meeting room, and high
speed internet connection. The Terminal may be a stand-alone building or part of a
larger building. Administrative offices used for purposes other than those directly
associated with the FBO operation shall not count toward the 3,000 square feet minimum
size.
d. Aircraft Storage/Maintenance Building(s). Each FBO shall lease or construct a
minimum of 27,000 square feet of hangar space for aircraft storage/maintenance.
No less than 20,000 square feet of the hangar space must be able to accommodate
aircraft with wingspans of 79 feet and tail height of 30 feet. If multiple buildings
comprise the total minimum of 27,000 square feet, at least one of the buildings
must be 10,000 square feet inside dimension free and clear contiguous open
space.
e. Motor vehicle parking places. Each FBO shall lease or construct motor vehicle
parking places for customers and employees consistent with the Parking
Standards of the City of Fairhope; plus, parking places for rental cars and crew
cars used by the FBO; plus, parking places for fuel trucks and other FBO
equipment.
f. Fuel Storage Facility (Fuel Farm). Each FBO shall lease or construct a Fuel
Storage Facility (Fuel Farm) to accommodate the fueling requirements as outlined
in Section 5.h.
5.d Hours of Operation
Each FBO is required to be open for business and provide aircraft fueling and line
services a minimum of seven (7) days per week, fourteen (14) hours per day with certain
exceptions as approved by the Authority. Business hours and holiday schedules must be
provided to the Authority in advance. Each FBO shall be on a twenty-four (24) hour "on -
call" basis to provide after-hours aircraft fueling and line services within one (1) hour of
a customer request; as such, each FBO shall provide a land line or cell phone "hot line"
well posted and advertised to its customers.
5.e Employee Staffing and Qualifications
Each FBO shall employ and have on duty during the required hours of operation a
sufficient staff to meet the Minimum Standards for each aeronautical service provided.
17
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
Each FBO shall provide the Authority, and keep current, a written statement of names,
addresses, and contact information for all personnel responsible for the operation and
management of the FBO. In addition, each FBO shall provide the Authority, and keep
current, a point -of -contact with phone numbers for emergency situations.
FBO hiring and employment practices must comply with all Federal and State guidelines,
including but not limited to non-discrimination laws, FAA/TSA security and background
checking requirements, and Alabama e-Verify laws.
All FBO fuel handling personnel shall be trained in the safe and proper handling,
dispensing, and storage of aviation fuels. The FBO shall develop and maintain Standard
Operating Procedures (SOP) for refueling and ground handling operations and shall
ensure compliance with standards set forth in CFR Part 139.321 and FAA Advisory
Circular 00-34, Aircraft Ground Handline and Servicing. The SOP shall address bonding
and fire protection, public protection, control of access to the fuel storage area, and
marking and labeling of fuel storage tanks and fuel dispensing equipment, and shall be
submitted to the Authority no later than thirty (30) days prior to the FBO commencing
fueling activities.
Additionally, each FBO shall comply with the National Fire Protection Association's
codes and standards, FAA Advisory Circular 150/5230-4, Aircraft Fuel Storage,
Handling, and Dispensing on Airports, Airport rules and regulations, and all other
applicable laws related to aircraft fuel handling, dispensing and storage. Each FBO shall
obtain all applicable fueling certifications and permits, and receive periodic refresher
training as required.
5.f Insurance Requirements
Each FBO shall maintain the types and amounts of insurance as specified in its lease or
other agreement to adequately cover the respective categories of aeronautical services
provided and to meet all Authority insurance requirements. The types of insurance
required may include, but not be limited to, the following:
i. Workers Compensation as required by the State of Alabama and a policy that
includes Employer's Liability Coverage for each person -accident, each person -
disease, and aggregate -disease;
ii. Property insurance covering all buildings, structures, improvements, and contents;
iii. Airport liability including bodily injury, property damage, premises, operations,
products and completed operations, hangarkeepers, contractual liability, and
independent contractors. Insurance is on an occurrence type basis;
iv. Aircraft liability including bodily injury and property damage;
V. Business automobile coverage including bodily injury and property damage
written on a per accident basis; and,
vi. Environmental impairment coverage including spillage, leakage, seeping or the
like arising out of fuel storage, fueling operations, lubricants and other petroleum
products, non -petroleum chemicals, and/or hazardous materials.
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Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
The exact types and limits of coverage shall be determined during lease/agreement
development, are dependent upon the types of activities authorized under the
lease/agreement, and may be modified by the Authority should the FBO modify its
activity. The minimum requirements for certain types of insurance are shown in
Attachment C: "Minimum Insurance Requirements for Commercial Aeronautical
Activities", but this is not a complete list of all insurance types and coverage limits that
may be determined by the Authority during lease/agreement development to be
necessary.
Each FBO shall provide the Authority with proof(s) of insurance certificate(s) annually.
With respect to liability arising from activities performed by or on behalf of the FBO, the
FBO is required to indemnify and hold harmless the Authority. The FBO is required to
list the Authority as an additional insured.
5.g Primary FBO Services
a. Fueling.
i. Each FBO must provide the sale and into -plane delivery of common 'and
recognized brands of aviation fuels, lubricants, and other aviation petroleum
products. In addition, each FBO shall provide, store, and dispense 100LL octane
avgas and Jet A fuel. All equipment used for the storage and/or dispensing of
petroleum products must meet Federal, State, and local codes, rules and
regulations. The location of the fuel storage facility shall be in conformance with
the Airport's Master Plan and approved by the Authority.
ii. Each FBO shall at all times comply with FAA Advisory Circular 00-34, Aircraft
Ground Handling and Servicing.
iii. Each FBO shall provide a stationary fuel storage system with safety features and
filtration systems to ensure fuel quality. Each FBO shall ensure that all fuel is
delivered into aircraft fuel tanks clean, bright, pure and free of microscopic
organisms, water, or other contaminants.
iv. The 100LL avgas and Jet A fuel storage tanks shall each be a minimum of ten
thousand (10,000) gallon capacity. The FBO shall also provide mobile or
stationary dispensing equipment and adequate trained staff to serve the Airport's
fuel demand. Filter -equipped fuel dispensers with separate dispensing pumps and
meter systems for each grade of fuel shall be provided. All metering devices must
be inspected, checked, and certified periodically as required by appropriate State
and local agencies. Fuel storage tanks shall meet all regulatory requirements.
V. Each FBO shall, at its own expense, maintain the fuel storage facility, all
improvements thereon, and all appurtenances thereto, in a presentable condition
consistent with good business practices and in accordance with the appropriate
rules, regulations and requirements. If the FBO leases a previously constructed
fuel storage facility, it is the responsibility of the FBO at its own expense to
improve the leased facility to meet all current rules, regulations, codes, and laws
at the start of the lease.
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Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
vi. Each FBO shall provide no less than two operating and fully functional refueling
trucks, one each for 100LL avgas (capacity at least one thousand (1,000) gallons)
and Jet A fuel (capacity at least two thousand (2,000) gallons). Each refueling
vehicle shall be equipped with metering devices that meet all applicable
regulatory measures. At least one refueling vehicle dispensing Jet A fuel shall
have over the wing and single point servicing capacity. All fueling vehicles
operating airside must comply with the Airport's airside vehicle permitting
program.
vii. Each FBO shall have a fuel storage system designed in accordance with all EPA
regulations including proper fuel spill prevention features and containment
capabilities. In addition, each FBO shall provide a current copy of its fuel spill
prevention, countermeasures, and control plan to the Authority thirty (30) days
prior to commencing operations. Fuel inventories will be monitored in
accordance with current EPA standards, and details of inventories will be
provided to the Authority when requested including total gallons received and
delivered by type and date.
viii. After receiving prior written permission from the Authority, an FBO may provide
self-service fueling in addition to the required fuel equipment set forth above.
Self-service fueling equipment must be in compliance with all applicable Federal,
State, and local regulations and cannot be substituted for the required full -service
fueling equipment set forth above.
ix. Each FBO shall conduct the lawful, sanitary, and timely handling and disposal of
all solid waste, regulated waste, and other materials including, but not limited to,
contaminated fuel, sump fuel, used oil, solvents, and other regulated waste. The
piling and storage of crates, boxes, barrels, containers, refuse, and surplus
property is not permitted upon the FBO premises.
X. Each FBO shall provide an adequate supply of properly located, type, size and
operable fire extinguishers and other safety equipment, including personal
protective equipment. All fire extinguisher certifications must be current. Fire
extinguishers shall be maintained within all hangars and other buildings, on apron
areas, at fuel storage facilities, and on all ground handling and refueling vehicles
as required by appropriate fire codes for the type of operation conducted.
xi. Each FBO shall provide, and require the use of, proper electrical grounding
equipment during any fuel transfer operations.
xii. Each FBO shall demonstrate to the Authority's satisfaction that a reputable
aviation fuel and lubricant distributor will provide the FBO with an enforceable
agreement to purchase fuel and lubricants in quantities necessary to meet the
requirements of the Airport.
xiii. Aviation fuels and lubricants delivered to the FBO by the distributor will be
considered by the Authority to be the fuels and oils dispensed for the purposes of
calculating rates or charges (otherwise known as fuel flowage fees) under its
Lease.
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Minimum Standards for Commercial Aeronautical Activities
R L. "Sonny" Callahan Airport
b. Aircraft Line Services.
Each FBO shall provide necessary equipment, supplies, and trained personnel for aircraft
ramp assistance, towing, parking, and tie downs within the leased area. Equipment shall
be sufficient to facilitate the handling of aircraft identified in Section 5.b, including but
not limited to:
i. Ground Power Units;
ii. Emergency towing capability;
iii. Oxygen;
iv. Nitrogen;
V. Compressed air services;
vi. Ramp transportation.
c. Pilot Services and Concessions.
Each FBO shall provide at least the following services and concessions inside its
Terminal building:
i. Customer service counter stocked with basic pilot supplies;
ii. Public restrooms;
iii. Public lounge and waiting area;
iv. Flight planning work area including computers with access to weather and
internet flight planning functions;
V. Telephone land line and Wi-Fi high speed internet access;
vi. Snack food and beverage machines;
vii. Local ground transportation contact information;
viii. Local flight safety information;
ix. Courtesy car.
d. Airframe and Powerplant Maintenance.
Each FBO shall provide airframe and powerplant maintenance services for single and
multi -engine piston driven propeller aircraft. Similar services for turbine and jet fixed
wing aircraft, and for rotorcraft are optional.
For airframe and powerplant maintenance each FBO shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Airframe and Powerplant Maintenance Services;
ii. Provide a minimum of one (1) FAA certified technician who possesses an
airframe, powerplant, or aircraft inspector rating, or the facility shall be certified
under and maintain all the requirements as specified in 14 CFR Part 145;
iii. Keep premises open and services available a minimum of eight (8) hours daily,
five (5) days a week. A technician shall also be available twenty-four (24) hours,
seven (7) days a week for on -call emergencies;
iv. Provide equipment, supplies, and parts required for airframe, powerplant,
inspection, tire, battery, oxygen, and other routine aircraft maintenance functions
appropriate for the type of aircraft serviced.
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Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
5.h Secondary FBO Services
a. Flight Training.
A flight training service operator provides aircraft dual and solo flight instruction and
related ground school instruction as is necessary to complete a written pilot's
examination and flight check ride for various classes of pilot's licenses and ratings. A
flight training service provider shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Flight Training Services;
ii. Provide at least one (1) or more FAA certified flight instructor as necessary to
meet the flight training demand and schedule requirements;
iii. Own or lease one (1) or more airworthy aircraft necessary to meet the flight
training demand and schedule requirements. At least one aircraft in the flight
training fleet must be equipped for instrument flight instruction and must have
four (4) or more seats;
iv. Provide adequate mock-ups, pictures, slides, videos, computer aided devices and
other training materials to provide proper and effective ground school instruction;
V. Keep premises open and services available a minimum of forty (40) hours per
week.
b. Aircraft Charter or Air Taxi and Aircraft Management Operations.
An aircraft charter or air taxi services operator provides air transportation of persons or
property to the general public for hire, either on a scheduled or unscheduled basis, or as
defined by 14 CFR Part 125 or Part 135 as applicable. An aircraft management operator
is a commercial operator engaged in the business of providing aircraft flight dispatch,
flight crews, or aircraft maintenance coordination to the public. An aircraft charter or air
taxi operator, or an aircraft management operator shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Air Charter or Air Taxi or Aircraft Management Services;
ii. Provide at least one (1) person who holds a current FAA commercial pilot
certificate and current Class I or II medical certificate and ratings appropriate for
each aircraft listed on the operator's certificate. In addition, all flight personnel
shall be properly rated for the aircraft operated.
iii. Be open with services available a minimum of forty (40) hours per week. The
operator shall have dispatch capability within four (4) hours of a customer
request;
iv. Own or lease or manage at least one (1) certified and continuously airworthy IFR-
capable aircraft;
V. Have and display in its public office a current FAR Part 135 Air Taxi Certificate
or provisional FAR Part 135 Certificate, plus the aircraft identification page from
the operating specifications manual of each aircraft listed on the certificate;
vi. If applicable to rotorcraft operation, the operator providing external -loading
capabilities will comply with the requirements contained within 13 CFR Part 133.
22
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
c. Aircraft Rental.
An aircraft leasing or rental services operator provides general aviation aircraft for
leasing or rental to the public. An aircraft leasing or rental services operator shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Aircraft Rental Services;
ii. Provide at least one (1) person who holds a current FAA commercial pilot
certificate including instructor rating and current Class I or II medical certificate
and ratings appropriate for each aircraft listed on the operator's certificate;
iii. Keep premises open with services available a minimum of eight (8) hours daily,
six (6) days per week;
iv. Own or lease one (1) or more airworthy aircraft for use in rental or flight training.
At least one aircraft in the rental fleet must be equipped for instrument flight
conditions and must have four (4) or more seats.
d. Avionics Maintenance and Sales.
An avionics services operator provides the maintenance, repair, and installation of
aircraft avionics, radios, instruments, and accessories as described in 14 CFR Part 43.
This service shall include the sale of new or used aircraft avionics, radios, instruments,
and accessories. An avionics services operator shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Avionics Maintenance and Sales Services
ii. Provide at least one (1) trained and FAA certified technician;
iii. Keep premises open with services available a minimum of eight (8) hours daily,
five (5) days per week;
iv. Hold the appropriate FAA repair station certificate(s) for the types of equipment
the operator plans to service and/or install.
e. Aircraft Storage and Hangars.
An aircraft storage and hangar services operator leases and rents hangars, multiple T-
hangars, and/or tie downs to aircraft owners or operators solely for aircraft storage
purposes. The storage of automobiles, boats, recreational vehicles, and other non -
aviation related equipment in aircraft hangars is strictly prohibited unless these items are
in addition to the storage of an airworthy aircraft, and unless these items use a de minimis
amount of space compared to the storage space used for the aircraft, and unless these
items do not create a hazard or nuisance to the hangar facility. An aircraft storage and
hangar services operator shall:
i. Lease or sublease a sufficient amount of airport land to accommodate the proper
quantity and size of hangars for the quantity and type of stored aircraft per FAA
established guidelines. The minimum leasehold size, dimensions of the hangars,
and the hangar door size and location are unique to each situation and must be
approved in each case by the Authority;
23
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
ii. Make hangar operator's contact name and phone numbers, hangar availability,
and rental rates known to prospective customers via posted informational sign
inside each FBO terminal. A separate leased space is not required for this service;
iii. Ensure that each hangar is occupied primarily by aircraft as described in the
introduction of this Section 5.e, and provide a listing of all aircraft stored within
the operator's hangar facilities to the Authority;
iv. Ensure the hangar tenants allow only preventative aircraft maintenance to be
performed within the hangar property on their own aircraft in accordance with 14
CFR Part 43. Painting, welding, and any type of hazardous material storage shall
not be permitted within the hangar property unless specifically authorized in
advance by the Authority. The piling and storage of crates, boxes, barrels,
containers, refuse, and surplus property shall not be permitted.
f. Aircraft Sales.
An aircraft sales services operator provides new and/or used aircraft sales, and/or aircraft
brokerage services to the public. An aircraft sales services operator shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Aircraft Sales Services;
ii. Provide at least one (1) qualified aircraft salesperson and access to a
demonstration pilot who holds a current FAA commercial pilot certificate and
current Class I or 11 medical certificate and ratings appropriate for each aircraft
being demonstrated;
iii. Keep premises open with services available a minimum of eight (8) hours daily,
five (5) days per week.
g. Aircraft Restoration and Refurbishing.
An aircraft restoration and refurbishing services operator provides restoration and
refurbishing services of aircraft structures, parts, accessories, interiors, exteriors, and
components to the public. An aircraft restoration and refurbishing services operator
shall:
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Aircraft Restoration and Refurbishing Services;
ii. Keep premises open with services available a minimum of eight (8) hours daily,
five (5) days per week.
h. Specialized Flying Services.
FBOs providing specialized commercial flying services such as non-stop sightseeing
tours, aerial photography or surveying, power line or pipeline patrol, firefighting or fire
patrol, air ambulance, airborne mineral exploration, or other air transportation operations
specifically excluded from FAR Part 135 shall:
24
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
i. Satisfy the minimum space requirement as identified in Table No. 1 in Section
6.a.b for Specialized Flying Services;
ii. Own or lease at least one (1) airworthy aircraft;
iii. Provide at least one (1) person who holds a current FAA commercial pilot
certificate and medical certificate with rating appropriate for the operator's
aircraft;
iv. Make specialized commercial flying services operator's contact name and phone
numbers, service availability, and rates known to prospective customers via
posted informational sign inside each FBO terminal. A separate leased space is
not required for this service;
V. Have services available within four (4) hours of request eight (8) hours daily, five
(5) days per week.
25
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 6
MINIMUM STANDARDS FOR SPECIALIZED AVIATION SERVICE OPERATIONS
(SASO)
6.a General Requirements
a. Compliance
A Specialized Aviation Service Operation (SASO) is an entity engaged in the business of
providing a single or limited number of multiple commercial aeronautical services to
aircraft and airport users. SASOs must comply with Minimum Standards. However, the
Authority will not require, without adequate justification, that a SASO meet all the
criteria for a full -service FBO.
SASOs shall not be permitted to sell fuel or provide retail fueling services. SASOs may
contact the Authority for the approval to fuel aircraft owned or leased directly by the
SASO, but the granting of this privilege shall be at the sole discretion of the Authority.
Each SASO shall conduct its business and activities on and from the leasehold premises
in a safe and professional manner consistent with the degree of care and skill exercised
by experienced SASOs providing comparable products, services, and activities from
similar airports in like markets.
The Authority, the FAA, the TSA, and/or the Alabama Bureau of Aeronautics may
periodically conduct inspections of any or all SASO activities and facilities to ensure
compliance with laws, regulations, leasehold agreements, and Minimum Standards.
Additionally, other governmental agencies may from time to time conduct inspections of
specific SASO activities and facilities within the agencies' jurisdiction. Each SASO has
a positive obligation to cooperate fully with any such inspection, and to remedy any
defects identified in the inspection.
b. Leased Space Requirement
Each SASO shall be presumed to be required to lease the required amount of space from
the Authority or an existing Airport tenant (if such tenant has the permission of the
Authority to sub -lease) as specified for individual services as shown in Table No. 1 in
this Section. If multiple or bundled services are provided, SASO space may be cross -
utilized for multiple SASO services.
Because of the unique nature of the Airport layout, and the specific details of each
proposed SASO service, the Authority will consider a request from the SASO to justify a
lesser amount of leasehold space than presumed in Table No. 1. However, approval of
less than the presumed minimum leasehold space requirements shall be at the sole
discretion of the Authority.
26
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
Each SASO must lease or sublease enough space to comply with the City of Fairhope
parking requirements.
Table No. 1: SASO Spa e Require ent by Activi *
Aeronautical Activity
Minimum
Ramp
Space
Minimum
Hanger
Space
Minimum
Office/customer
Space/storage/other
Building(s)
Flight Training
8,800
6,600
1,000
Airframe and Powerplant Maintenance
6,500
8,200
2,800
Air Charter or Air Taxi or Aircraft Management
8,000
5,900
1,000
Aircraft Rental
8,400
5,500
1,000
Avionics Maintenance and Sales
11,300
7,600
1,000
Aircraft Sales
8,500
6,200
1,000
Aircraft Restoration and Refurbishing
6,500
8,200
2,800
Specialized Flying Services
6,500
8,200
2,800
*Minimum Square Foot Requirements as excerpted or derived from the Transportation
Research Board of the National Academies in its "Survey of Minimum Standards:
Commercial Aeronautical Activities at Airports" which was sponsored by the
Federal Aviation Administration and published in February 2011.
c. Employee Staffing and Qualifications
Each SASO shall comply with Minimum Standards Section 5.e "Employee Staffing and
Qualifications".
d. Insurance Requirements
Each SASO shall comply with Minimum Standards Section 5.f "Insurance
Requirements".
6.b Fueliniz
If the Authority has granted to the SASO the privilege to fuel aircraft owned or leased
directly by the SASO, then the SASO shall comply with Minimum Standards Section
5.g.a "Fueling".
6.c Airframe and Powerplant Maintenance
If the SASO provides airplane and powerplant maintenance services, then the SASO shall
comply with Minimum Standards Section 5.g.d "Airframe and Powerplant Maintenance".
27
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
6.d Flight Training
If the SASO provides flight training services, then the SASO shall comply with
Minimum Standards Section 5.h.a "Flight Training".
6.e Aircraft Charter or Air Taxi and Aircraft Management Operations
If the SASO provides aircraft charter or air taxi and aircraft management services, then
the SASO shall comply with Minimum Standards Section 5.h.b "Aircraft Charter or Air
Taxi and Aircraft Management Operations".
6.f Aircraft Rental
If the SASO provides aircraft rental services, then the SASO shall comply with Minimum
Standards Section 5.h.c "Aircraft Rental".
6.g Avionics Maintenance and Sales
If the SASO provides avionics maintenance and sales services, then the SASO shall
comply with Minimum Standards Section 5.h.d "Avionics Maintenance and Sales".
6.h Aircraft Storage and Hangars
If the SASO provides flight training services, then the SASO shall comply with
Minimum Standards Section 5.h.e "Aircraft Storage and Hangars".
6.i Aircraft Sales
If the SASO provides aircraft sales services, then the SASO shall comply with Minimum
Standards Section 5.h.f "Aircraft Sales".
6.j Aircraft Restoration and Refurbishin
If the SASO provides aircraft restoration and refurbishing services, then the SASO shall
comply with Minimum Standards Section 5.h.g "Aircraft Restoration and Refurbishing".
6.k Specialized Flying Services
If the SASO provides specialized commercial flying services such as non-stop
sightseeing tours, aerial photography or surveying, power line or pipeline patrol,
firefighting or fire patrol, air ambulance, airborne mineral exploration, or other air
transportation operations specifically excluded from FAR Part 135, then the SASO shall
comply with Minimum Standards Section 5.h.h "Specialized Flying Services".
28
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 7
FLYING CLUBS
7.a Purpose
A Flying Club is a non-profit entity organized for the purpose of providing its members
with any number of aircraft for their personal use and enjoyment. Aircraft must be vested
in the name of the Flying Club as owner. Leased aircraft may be utilized as long as all
associated lease expenses are shared by the membership on a pro-rata share basis.
Neither the Flying Club nor any of its members may derive greater revenue from the use
of the aircraft than the cost to operate, maintain and replace the aircraft.
7.b Requirements
The Authority has the right to require a Flying Club to furnish documents such as
insurance policies, in the amounts and types determined by the Authority, the Flying
Club's by-laws, meeting minutes and notifications, an updated roster of all Flying Club
aircraft, and a current list of members to ensure that the Flying Club remains a non-
commercial and non-profit organization.
7.c Restrictions
A Flying Club may not offer nor conduct charter, air taxi, or rental of aircraft services.
Nor may the Flying Club conduct flight instruction except for regular members, and only
members of the Flying Club may operate the aircraft. All Flying Club members are
prohibited from leasing or selling any goods or services whatsoever to any person or
entity other than a member of the club. Credit against payment of dues or flight time may
be extended to Flying Club members that perform maintenance and flight instruction
services on the Flying Club's aircraft. A Flying Club and all of its members shall at all
times abide by and comply with all Authority, federal, state, and local laws, ordinances,
regulations, and rules. A Flying Club must be compliant with the requirements as stated
in FAA Order 5190.6A.
7.d Aircraft Maintenance
A Flying Club shall have the privilege of maintaining Club -owned aircraft in accordance
with applicable Federal Aviation Regulations, and any Flying Club's member in good
standing who holds the appropriate licenses/ratings for the work being performed may
provide the services. The following requirements apply:
i. Maintain all insurances for the maintenance operation as defined by the
Authority;
ii. Meet all the requirements for disposal of any and all hazardous materials;
iii. Perform maintenance only in areas designated by the Authority;
iv. The Flying Club's member -mechanic may not charge for services, except that
said member -mechanic may be compensated by credit against payment of dues or
flight time;
29
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
V. Service may be provided to the Flying Club's aircraft only;
vi. If maintenance at the Airport is required that is beyond the capability of a Flying
Club's member -mechanic, a Flying Club may obtain and pay for maintenance
services from outside personnel. If the proposed mechanic is not employed by an
FBO or SASO located on the Airport but otherwise authorized to perform the
services, the mechanic must comply with Section 8, Commercial Operator
Permits, of these Minimum Standards before being authorized to perform the
services;
vii. The Flying Club is permitted to hire an individual who would not otherwise
qualify to be a member of the Club to serve as an employee of the Club for the
purpose of maintaining Club -owned aircraft. However, this individual must be
considered at all times an employee of the Club and not a contractor.
Maintenance work shall be done in accordance with sub -sections (i), (ii), (iii), and
(v) above.
30
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 8
COMMERCIAL OPERATOR PERMITS
8.a Introduction
A person or entity that does not lease property on the Airport that would like to engage in
providing commercial services shall be accorded a reasonable opportunity, without
discrimination, to apply for a Commercial Operator Permit. All persons or entities
permitted to engage in commercial activities shall be required to comply with all
Authority, Federal, State, and local laws, ordinances, regulations, and rules including but
not limited to all applicable environmental laws. Services may be provided only in areas
so designated by the Authority.
8.b Permit/Approval
No person or entity shall engage in commercial activities at the Airport without a valid
Commercial Operator Permit from the Authority. Each person or entity must complete a
Commercial Operator Permit application. All holders of a Commercial Operator Permit
(Permit) shall be required to obtain and maintain insurance coverage and policy limits as
determined during the permitting process by the Authority. All holders of a Permit shall
comply with all terms and conditions of the Permit or the Permit may be revoked by the
Authority. Each Permit may be subject to an administrative fee established by the
Authority.
8.c Reporting
All holders of a Permit shall report in a form acceptable to the Authority all services
delivered and/or dispensed during each calendar month. The report, and any applicable
fees and charges, must be received by the Authority on or before the 10th day of the
subsequent month. All holders of a Permit shall maintain records of all activities for not
less than a three (3) year period, and records shall be made available for audit by the
Authority.
31
Minimum Standards for Commercial Aeronautical Activities
H. L. "Sonny" Callahan Airport
SECTION 9
EXHIBITS AND ATTACHMENTS
Schedule of Exhibits and Attachments
A. Airport Layout Plans and/or Property Maps
B. Lease Application/Alteration/Denial Details
C. Airport Minimum Insurance Requirements
32
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VOLKM
ATTACHMENT B
LEASE APPLICATION/ALTERATION/DENIAL DETAILS
General
Each person, corporation, or other business entity desirous of becoming a commercial
tenant at the Airport must complete and submit an application to the Chairman of the
Authority (Chairman) for review and consideration by the Authority. Additionally, if an
existing tenant experiences a change in ownership of 25% or more, or the leasehold is
desired by the tenant to be altered or modified, the Authority may require that the tenant
resubmit an application for tenancy. The Chairman reserves the right to request from an
applicant for tenancy in written form, at the time of, and as part of its application, the
following information and thereafter such additional information as may be required or
requested by the Chairman.
As a prerequisite to occupancy on and the granting of commercial operating privileges at
the Airport, the prospective operator must submit a specific, detailed description of the
scope of the intended commercial aeronautical activities, and the means and methods to
be employed to accomplish the contemplated activities. Required information for
commercial aeronautical activities shall include but not be limited to:
1. The legal name of the entity filing the application and its "dba" name if different;
2. The name, address, and telephone number of the entity and its primary contact
person;
3. The names, addresses, and phone numbers of all owners of five (5) percent or
more equity interest, management control, or debt in the entity;
4. The proposed date for commencement of the intended activities and proposed
term for conducting same;
5. A comprehensive listing of all activities proposed to be offered, along with copies
of all applicable Federal, State, or local operating certificates and licenses held;
6. For proposed agreements to lease (or requests for assignments) existing structures
or improvements, a description of the size, location, and proposed utilization of
office, hangar, ramp, and vehicle parking areas to be utilized;
7. For proposed agreements to lease (or requests for assignments) of unimproved
Airport areas, a layout (to scale) of the size, configuration, and location of the
property desired to be occupied and a preliminary drawing of the buildings and
other improvements to be constructed, together with identification of vehicle
parking areas. Drawings should be legible and reproducible with clearly defined
dimensions. Each drawing should be in ink and submitted both in original size
and in reduction to 8.5 X 11.0 inches. The Authority retains the right to request a
metes and bounds legal description of lease property boundaries;
8. The number of persons to be employed, detailed by position descriptions and
required qualifications, and further detailed as to full-time, part-time, or seasonal;
9. The number of aircraft to be utilized in connection with the proposed activities,
including for each aircraft the make, model, passenger seating capacity, cargo
capacity, instrument flight capability, aircraft registration number, and copies of
applicable operating certificates;
10. The tools, equipment, vehicles, and inventory proposed to be utilized in
connection with the proposed activities;
11. A written business plan, including market analysis, to include a written statement
addressing at least the following topics:
a. Definition of target markets;
b. Intended market share;
c. Promotional marketing techniques;
d. Description of existing competitors;
e. Percent of intended sales related to aircraft based on the Airport;
f. Evidence of support from potential customers, such as surveys,
testimonials, and/or related information;
g. List of products to be sold or distributed (if any) and a list of
manufacturer's or distributor's requirements for obtaining dealership (if
applicable);
h. List of suppliers, subcontractors, and associates;
i. List of any proposed subtenants.
Financial Capability
As evidence of the applicant's financial capability, the prospective operator shall provide
to the Chairman a statement from a bank or similar financial institution or from such
other source as may be acceptable to the Chairman and readily verified through normal
banking channels. The prospective operator must also demonstrate the financial
capability to initiate the contemplated activities, construct the proposed improvements,
and provide working capital sufficient for a stable business environment. The
demonstration of financial capabilities shall also include cash flow and profit/loss
calculations for the first five (5) yeas of the operation, a three-year historical profit/loss
statement (if applicable), and a current balance sheet.
Experience
The prospective operator shall furnish the Chairman a statement of its past experience in
providing the specified commercial aeronautical service(s) for which the application is
being made, including the resumes of management individuals who will be directly
responsible for the proposed operation, plus their respective business, financial and
managerial references. This information must be presented in a form acceptable to the
Chairman.
2
Bonding and Insuring
The prospective operator shall provide evidence in a form acceptable to the Chairman, of
its ability to supply:
1. A performance bond in an amount equal to one hundred (100) percent of one
year's rent and/or fees established and agreed to for conducting the activities and
entering into the agreement sought. Cash may be used in -lieu of a performance
bond;
2. A performance bond in the amount equal to the cost of constructing the proposed
improvements, in a form acceptable to the Chairman;
3. Proof of all required insurance coverages as specified and applicable to the
Airport and the Authority.
Grounds for Denial of Application
The Chairman or the Authority may deny any commercial application for any one or
more of the following reasons:
1. The applicant's proposed activities, operation, and/or construction of
improvements would create a safety hazard at the Airport and/or surrounding
community;
2. The applicant's proposed activities, operation, and/or construction of
improvements would create a violation of Airport, FAA, TSA, Federal, State, or
local laws, ordinances, regulations, or rules;
3. The applicant for any reason does not fully meet the qualifications, standards, and
requirements of the Airport. The burden of proof shall be on the prospective
operator, and the standard of proof shall be by clear convincing evidence;
4. The granting of the application will require the Airport to expend funds, or supply
labor or materials, in connection with the proposed activities and/or construction
that the Airport is unwilling or unable to spend, or the proposed activities and/or
construction will result in a financial loss (or hardship or liability) to the Airport;
5. No appropriate, adequate, or available space or improvements exist at the Airport
which would accommodate the operation of the applicant at the time of the
application, nor is such contemplated within a reasonable time frame;
6. The proposed operation, development, and/or construction does not comply with
the Airport's Master Plan (and/or ALP) in effect at that time, or anticipated to be
in effect within the time frame proposed by the applicant;
7. The development or use of the area requested by the applicant will result in
congestion of aircraft, buildings, or common use ramps and taxiways, or will
unduly interfere with the operations or activities of any present operator on the
Airport and/or prevent adequate access to the assigned lease area of any present
lease and/or operator;
8. The applicant has either intentionally or unintentionally misrepresented or omitted
material facts in the application or in supporting documents;
9. The applicant or any of its officers, directors, agents, representatives,
shareholders, or employees has a record of violating the rules, regulations,
3
statutes, ordinances, laws, or orders of any other airport, civil air regulations,
FAA regulations, or any other rules, regulations, statutes, ordinances, laws, or
orders relevant and/or applicable to the Airport;
10. The applicant or any of its officers, directors, agents, representatives,
shareholders, or employees has defaulted in the performance of any other
agreement;
11. The applicant or any of its officers, directors, agents, representatives,
shareholders, or employees has been convicted of any felony or of a misdemeanor
involving moral turpitude;
12. On the basis of current financial information, the applicant does not, in the sole
discretion of the Chairman, exhibit adequate financial responsibility or capability
or capacity to undertake the proposed activities, operation, and/or construction;
13. The applicant cannot or will not provide a performance bond and/or adequate
applicable insurance in the amounts and types required for the proposed activities,
operation, and/or construction;
14. The applicant's proposed activities, operation, and/or construction could be
detrimental to the Airport or not in the best interests of the Airport, as determined
by the sole discretion of the Chairman or the Authority.
4
ATTACHMENT C
H. L. "Sonny" Callahan Airport
Minimum. Insurance Requirements
For Commercial Aeronautical Activities
Fixed Base Operator (FBO)
Aircraft Liability - $5,000,000 per occurrence combined single limit for bodily
injury and property damage including passengers
Comprehensive Public Liability and Property Damage (Premises)-
$5,000,000 per occurrence of combined single limit bodily injury and property
damage
Hangar -keeper's Liability- $1,000.000 per occurrence
Products & Completed Operations Liability- $5,000,000 per occurrence
Environmental Liability- $1,0001,000
Airframe & Power Plant Repair
Premises Liability (hangar operation) - $1,000,000 per occurrence combined
single limit for bodily injury and property damage
Products & Completed Operations .Liability for Repairs & Services and
Parts not Installed - $1,000,000 per occurrence
Hangarkeepers Liability —$600,000 per occurrence
Motor Vehicle Liability —If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Avionics, Instrument & Propeller Repair
Premises Liability - $1,000,000 per occurrence of combined single limit for
bodily injury and property damage
Products & Completed. Operations Liability for Repairs & Services and
Parts not Installed - $1,000,000 per occurrence
Hangarkeepers Liability —$600,000 per occurrence
Motor Vehicle Liability- if using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Air Charter
Aircraft Liability Per Occurrence -combined single limit for bodily injury and
property damage with respect only to passenger bodily injury, a minimum of
$100,000 each person, based on passenger seating capacity as
follows: Seating Capaci!y Amount
14 passengers $2,000,000
5-9 passengers $5,000,000
10 & over $15,000,000
Premises Liability - $1,000,000 per occurrence of combined single limit for
bodily injury and property damage
Motor Vehicle Liability -If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Air Cargo
Aircraft Liability- $5,000,000 per occurrence combined single limit for bodily
injury and property damage including passengers
Premises Liability - $1,000,000 per occurrence of combined single limit for
bodily injury and property damage
Motor Vehicle Liability -If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Aircraft Rental
Aircraft Liability - $1,000,000 per occurrence combined single limit for bodily
injury (including passengers) and property damage. With respect only to
passenger bodily injury a minimum sublimit of $100,000 per passenger will be
permitted.
Premises Liability - $1,000,000 per occurrence of combined single limit for
bodily injury and property damage
Motor Vehicle Liability -If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Aircraft Sales
Aircraft Liability- $2,000,000 per occurrence combined single limit for
bodily injury and property damage with respect only to passenger bodily injury, a
minimum of $100,000 each person
Premises Liability-$1,000,000 per occurrence of combined single limitfor
bodily injury and property damage
Products & Completed Operations Liability for Sale of Aircraft- $1,000,000
per occurrence
Motor Vehicle Liability -If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Flight Training
Aircraft Liability- $1,000,000 per occurrence combined single limit for bodily
injury (including passengers) and property damage. With respect only to
passenger bodily injury a minimum sublimit of $100,000 per passenger will be
permitted.
Premises Liability - $1,000,000 per occurrence of combined single limit for
bodily .injury and property damage
Motor Vehicle Liability -.If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Commercial Flying Club
Aircraft Liability - $1,000,000 per occurrence combined single limit for bodily
injury (iicluding passengers) and property damage. With respect only to
passenger bodily injury a minimum sublimit of $100,000 per passenger will be
permitted.
Premises Liability - $1,000,000 per occurrence combined single limit for bodily
injury and property damage
Motor Vehicle Liability -If using vehicles on the air operations area in support
of business, $600,000 per occurrence combined single limit for bodily injury and
property damage
Multiple Commercial Activities
Operator shall provide certificates of insurance coverage in an amount equal to
the highest individual insurance requirement stipulated for the specific commercial
aeronautical services being performed as stated above.
4