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Record #: O2018-1124   
Type: Ordinance Status: Passed
Intro date: 2/28/2018 Current Controlling Legislative Body: Committee on Aviation
Final action: 3/28/2018
Title: Repeal of O’Hare Rates and Operations Ordinance, amendment of Municipal Code Sections 2-20-020 and 10-36-190 and execution of new lease and license agreements with various air carriers at Chicago O’Hare International Airport
Sponsors: Emanuel, Rahm
Topic: AGREEMENTS - Lease, - AIRPORTS - O'Hare, MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 20 Dept. of Aviation, MUNICIPAL CODE AMENDMENTS - Title 10 - Streets, Public Ways, Parks, Airports & Harbors - Ch. 36 Parks, Playgrounds & Airports
Attachments: 1. O2018-1124.pdf, 2. O2018-1124 (V1).pdf

ORDINANCE

 

WHEREAS, the City of Chicago ("City") is a home rule unit of government under Article VII, Section 6(a) of the 1970 Constitution of the State of Illinois and, as such, may exercise any power and perform any function pertaining to its government and affairs; and

 

WHEREAS, the City owns and operates an airport commonly known as Chicago O'Hare International Airport ("O'Hare"), and possesses the power and authority to lease premises and facilities and to grant other rights and privileges with respect thereto; and

 

WHEREAS, the City heretofore entered into the Amended and Restated Airport Use Agreement and Terminal Facilities Leases and the International Terminal Use Agreement and Facilities Leases at O'Hare with certain air carriers ("Existing Use Agreements"); and

 

WHEREAS, the Existing Use Agreements will expire on May 11, 2018, so it is necessary and desirable for the City to enter into a new form of Chicago O'Hare International Airport Airline Use and Lease Agreement (the "New Airline Use and Lease Agreement") with Alaska Airlines, Inc. ("Alaska"); All Nippon Airways, Co., LTD ("ANA"); American Airlines, Inc. ("American"); Delta Air Lines, Inc. ("Delta"); Deutsche Lufthansa AG ("Lufthansa"); Federal Express Corporation ("FedEx"); JetBlue Airways Corporation ("JetBlue"); Nippon Cargo Airlines Co., Ltd. ("Nippon"); Spirit Airlines, Inc. ("Spirit"); United Airlines, Inc. ("United"); and other commercial air carriers from time to time during the term of the New Airline Use and Lease Agreement, in substantially the form attached hereto as Exhibit 1; and

 

WHEREAS, the premises to be leased, respectively, to Alaska, ANA, American, Delta, Lufthansa, FedEx, JetBlue, Nippon, Spirit, and United, beginning on the effective date of the New Airline Use and Lease Agreement, May 12, 2018, will be described in an exhibit to each air carrier's New Airline Use and Lease Agreement, the forms of which are attached hereto, collectively, as Exhibit 2 ("Premises Notices"); and

 

WHEREAS, it is also necessary and desirable for the City to enter into Affiliate Operating Agreements with certain air carriers, each operating at O'Hare as an Affiliate of an air carrier who is a signatory to the New Airline Use and Lease Agreement, as defined in and with the rates and charges as set forth in the New Airline Use and Lease Agreement, in substantially the form attached hereto as Exhibit 3 ("Affiliate Operating Agreements"); and

 

WHEREAS, it is also necessary and desirable for the City to enter into Non-Signatory Airline Operating Agreements with air carriers who operate at O'Hare that are neither signatories to the New Airline Use and Lease Agreement nor Affiliates to signatories of the New Airline Use and Lease Agreement, with the rates and charges as set forth in the New Airline Use and Lease Agreement, in substantially the form attached hereto as Exhibit 4 ("Non-Signatory Airline Operating Agreements"); and

 

WHEREAS, in an ordinance adopted by the City Council of the City of Chicago ("City Council") on August 4, 1993 ("1993 Ordinance"),- the Mayor or his proxy was authorized to

 

 

 

 

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execute license agreements for the short-term use of space at O'Hare with certain entities operating at O'Hare; and

 

WHEREAS, so that the rates and charges for short-term use of office, storage, or similar space by air carriers or aeronautical service providers at O'Hare shall be consistent with the rates and charges in the New Airline Use and Agreement, it is necessary and desirable for the City to update the 1993 Ordinance and replace its Exhibit 1 with the form of Short-Term Facilities Use Agreement attached to this ordinance as Exhibit 5 ("Short-Term Facilities Use Agreement") with regards to such air carriers or aeronautical service providers who operate at O'Hare and may require office, storage, or similar operational space from time to time during the term of the New Airline Use Agreement; and

 

WHEREAS, the City adopted an ordinance on December 13, 2017 that would have governed air carrier use of the airfield and passenger airline terminals at O'Hare and prescribed methodology for charging air carriers for such use beginning May 12, 2018 in the absence of a New Airline Use and Lease Agreement (the "O'Hare Rates and Operations Ordinance"); and

 

WHEREAS, the City now desires to repeal the O'Hare Rates and Operations Ordinance and amend Sections 10-36-190 and 2-20-020 of the Municipal Code of Chicago (the "Code") in the event that the City has received fully executed New Airline Use and Lease Agreements with air carriers who, together with their Affiliates, as defined in the New Airline Use and Lease Agreement, collectively represented more than fifty percent (50%) of passengers enplaned in 2017 at O'Hare; now, therefore,

 

Be It Ordained by the City Council of the City of Chicago:

 

SECTION I. The above recitals are hereby incorporated by reference as if fully set forth

herein.

 

SECTION II. The Mayor is authorized to execute the New Airline Use and Lease Agreement with Alaska, ANA, American, Delta, Lufthansa, FedEx, JetBlue, Nippon, Spirit, and United, and such other air carriers as may be recommended by the Commissioner of Aviation ("Commissioner"), in substantially the form attached hereto as Exhibit 1.

 

SECTION III. The Commissioner is authorized to execute Affiliate Operating Agreements in substantially the form attached hereto as Exhibit 3 with air carriers approved by the Commissioner from time to time during the term of the New Airline Use and Lease Agreement to operate at O'Hare.

 

SECTION IV. The Commissioner is authorized to execute Non-Signatory Airline Operating Agreements in substantially the form attached hereto as Exhibit 4 with air carriers approved by the Commissioner from time to time during the term of the New Airline Use and Lease Agreement to operate at O'Hare.

 

SECTION V. The Commissioner is authorized to execute Short-Term Facilities Use Agreements in substantially the form attached hereto as Exhibit 5 with certain air carriers or

 

 

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aeronautical service providers at O'Hare as may be approved by the Commissioner from time to time during the term of the New Airline Use and Lease Agreement.

 

SECTION VI. The Mayor, the Commissioner and the Corporation Counsel, and any other City official as shall be designated by the Mayor, the Commissioner or the Corporation Counsel, respectively, are each authorized, individually and jointly, to execute and deliver any and all agreements, documents, instruments or certificates as the executing officer shall deem necessary, advisable or appropriate in connection with the New Airline Use and Lease Agreements, the Affiliate Operating Agreements, the Non-Signatory Airline Operating Agreements, and the Short-Term Facilities Use Agreements.

 

SECTION VII. The Commissioner is authorized to adopt such rules as the Commissioner may deem necessary or appropriate to implement or administer this ordinance and the agreements contemplated herein.

 

SECTION VIII. Section 2-20-020 of the Municipal Code of Chicago is hereby amended by inserting the underscored language and deleting the struck-through language, as follows:

2-20-020 Commissioner-Appointment, powers and duties.

(Omitted text is unaffected by this ordinance)

                     The Commissioner is authorized to execute such agreements and promulgate such rules

as provided for in the 2018 ordinance establishing the O'Hare Airline Use and Lease Agreement, as that term is defined in Section 10-36-190(a).

 

SECTION IX. Section 10-36-190 of the Municipal Code of Chicago is hereby amended by inserting the underscored language and deleting the struck-through language, as follows:

 

10-36-190 Compensation for use of Chicago-O'Hare International Airport and Chicago Midway Airport.

 

No person shall use the airport facilities of Chicago-O'Hare International Airport or Chicago Midway Airport, including non-commercial private aircraft, without paying compensation for the use of such facilities in accordance with the following schedule of fees:

 

(a) For each landing at Chicago-O'Hare International Airport of an aircraft operated by a signatory to (I) an Amended and Restated a_Chicago-0'Hare International Airport Airline Use and Lease Agreement and Terminal Facilities Lease, in the form approved by this amendatory ordinance of 2018 the city council as of January 1, 1985, as it may be amended from time to time ("O'Hare Airline Use and Lease Agreement"), er (ii) an International Terminal Use Agreement and Facilities Lease, in the form approved by the city couneil as of January 1, 1990, as it may be amended from time to time, the landing fee rate per 1,000 pounds approved maximum landing weight shall be the landing fee rate then in effect pursuant to the O'Hare Airline Use and Lease Agreement.

 

 

 

 

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(b) For each landing al Chicago-O'Hare International Airport of an aircraft other than those specified in subsection (a), the landing fee rate per— l-000-peuFids-appr-ovetl-4BaxH--nufH Ja-HdiHg-weighl-shall be determined by the commissioner of aviation consistent with the O'Hare Airline Use and Lease Agreement.

 

(c)      For each aircraft at Chicago-O'Hare International Airport parking for each 24-hour period or fraction thereof in an aircraft parking area designated as public, a fee thereof shall be determined by the commissioner of aviation consistent with the O'Hare Airline Use and Lease Agreement equal-toH:he-pFefH3ribed4afl4ing-^ sha!4-beKlHe-fer-paj4i4ftg-«n^

 

(Omitted text is unaffected by this ordinance)

 

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SECTION X. The O'Hare Rates and Operations Ordinance, passed by City Council on December 13, 2017, is hereby repealed in its entirety.

 

SECTION XI. Sections I through VII of this ordinance shall be in full force and effect from and after the date of its passage and approval. Following passage and approval, Sections VIII, IX, and X shall be in full force and effect on such date, on or after May 12, 2018, that the City has received fully executed New Airline Use and Lease Agreements with air carriers who, together with their Affiliates, as defined in the New Airline Use and Lease Agreement, collectively represented more than fifty percent (50%) of passengers enplaned in 2017 at O'Hare. The receipt of the requisite number of executed New Airline Use and Lease Agreements shall be memorialized by a dated certification that the Commissioner files with the City Clerk.

 

Exhibits 1, 2, 3, 4, and 5 referred to in this Ordinance read as follows:

 

 

(The remainder of (his page is left intentionally blank)

 

 

 

 

 

 

 

 

 

 

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