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HomeMy WebLinkAboutOrdinance No. 4206 - AirportRentalCarOrdinance.2nd Reading ORDINANCE NO. AN ORDINANCE CREATING AND ENACTING CHAPTER 42A OF THE ROCHESTER CODE OF ORDINANCES, RELATING TO RENTAL CAR COMPANIES PROVIDING SERVICES TO PERSONS ARRIVING AT OR DEPARTING FROM THE ROCHESTER INTERNATIONAL AIRPORT. THE COMMON COUNCIL OF THE CITY OF ROCHESTER DO ORDAIN: Section 1. Chapter 42A to the Rochester Code of Ordinances is hereby created and enacted to read as follows: CHAPTER 42A RENTAL CAR SERVICES AT THE ROCHESTER INTERNATIONAL AIRPORT 42A.01. Legislative Findings, Definitions, and Authority. Subdivision 1. Off- Airport Privilege Fee. The City owns, operates, maintains, and develops the Rochester International Airport with, in part, federal grants, state grants, passenger facility charges, and user fees. Off-Airport, non-tenant Rental Car Businesses are authorized to provide Rental Car Services at the Airport for the accommodation of passengers arriving at or departing from the Airport from a location based off the Airport. As the recipient of Federal Aviation Administration grants, the Airport is required to establish a fee structure that will make the Airport as self-sustaining as possible under the circumstances. The City desires to establish fees to be collected from an Off-Airport non-tenant Rental Car Business in order to offset the costs of operation of the Airport, and to establish consistency by those providing services at the Airport. These goals contribute toward the achievement of financial self-sufficiency at the Airport. Subd. 2. Customer Facility Charge. The City has undertaken a capital improvement program to facilitate major customer service improvements at the Airport including the planning and development of a redeveloped terminal building. The City owns, operates, maintains and develops the Airport with, in part, federal grants, passenger facility charges and user fees. Customer Facility Charges have become common financing tools for airport improvements. The City of Rochester believes it would be beneficial to provide the updated and expanded terminal and associated airport improvements to the traveling public including updating the rental car terminal facilities. The City desires to a establish Customer Facility Charge to be collected from a Rental Car Business customer in order to offset the costs of operating, maintaining, and developing the Airport. Subd. 3. The City adopts this ordinance in furtherance of its authority under Minn. Stat. §360.038, subd. 6 to "determine the charges or rental for the use of any [airport] properties under its control and the charges for any services or accommodations and the terms and conditions under which such properties may be used." 42A.02. Definitions. Subdivision 1. The term "Airport" means the Rochester International Airport owned and operated by the City of Rochester, a Minnesota municipal corporation and a Minnesota municipality. Subd. 2. The term "Customer Facility Charge" means a charge for every Day covered by every Rental Car Contract entered into by each Provider. Subd. 3. The term "Day" means the time from midnight to the next midnight. Subd. 4. The term "Gross Revenue" means all fees and charges collected by a Rental Car Business from all activities and services performed at the Airport including business conducted at the fixed base operator or within a three mile radius of the Airport (including but not limited to reservations made through travel agencies and reservations made by telephone, on-line reservations, facsimile, telegraph and other means of communications) and including but not limited to all base, time and mileage fees and charges from customers picked up at the Airport, plus all premiums and other fees and charges (regardless of how they may be denominated) for personal accident insurance coverage, personal effects insurance coverage, personal effects protection insurance coverage, liability insurance supplement, additional liability insurance coverage, and all other types and kinds of insurance coverages and policies (regardless of how they are denominated, regardless of the parties covered, and regardless of the risks insured against), plus all sums for insurance waivers, collision damage waivers, and loss damage waivers, whether cash or credit, and whether collected or uncollected, plus all sums or other fees and charges provider receives, or is entitled to receive, for refueling motor vehicles rented to customers, plus all sums or other fees and charges Provider receives, or is entitled to receive, for the rental of any optional equipment such as cell phones, GPS devices, luggage or ski racks and infant seats plus all sums or other fees and charges provider receives, or is entitled to receive, for additional drivers. "Gross Revenue" shall not include (a) federal, state or municipal sales tax separately stated and collected from customers by the Provider, whether now or hereinafter levied or imposed separately stated on the rental agreement and collected from customers of Provider; or (b) any sums collected as a Customer Facility Charge. Subd. 5. The term "Non-Tenant Provider' means a Rental Car Business providing its services to persons arriving or departing from the Rochester International Airport from a location not found upon Airport property. 2 Subd. 6. The term "Off-Airport Privilege Fee" means a fee imposed upon a Non-Tenant Provider's Gross Revenue. Subd. 7. The term "Provider' means a Non-Tenant Provider or a Tenant Provider. Subd. 8. The term "Rental Car Business" means any person engaged in the business of providing Rental Car Services. Subd. 9. The term "Rental Car Contract" means a contract for Rental Car Services between a Provider and a customer. Subd. 10. The term "Rental Car Services" means the rental of motor vehicles to the traveling public. Subd. 11. The term "Tenant Provider' means a Rental Car Business providing its services to persons arriving or departing from the Rochester International Airport from a location found upon Airport property. 42A.03. Determination of Gross Revenue. Subdivision 1. Gross Revenue shall be deemed received at the time the Rental Car Contract is executed giving rise to Non-Tenant Provider's right to collect said monies, regardless of whether said transaction was conducted in person, by telephone or by mail, whether the transaction was for cash or credit, and if for credit, regardless of whether the Non-Tenant Provider ultimately collects the monies owed for said transaction from the customer involved. Gross Revenue are amounts which the Non-Tenant Provider receives or is entitled to receive, either initially or by amendment, whichever is greater. Subd. 2. For purposes of Gross Revenue determination, revenue shall be deemed to have been related to customers picked up at the Airport if the customer arrived at either Airport within a 24-hour period immediately preceding the rental, even though the customer arrived at the providers location on their own or the motor vehicle is dropped off by the customer elsewhere. 42A.04. Imposition of Fees. The Common Council may impose an Off- Airport Privilege Fee upon a Non-Tenant Provider's Gross Revenue. The Common Council may impose a Customer Facility Charge per Day covered by a Rental Car Contract. The amount of the Fee or Charge will be determined by Council resolution. 42A.05. Collection, Delivery, and Use of Fees. Subdivision 1. Each Provider will collect a Customer Facility Charge. Each Non-Tenant Provider will collect an Off-Airport Privilege Fee. 3 Subd. 2. The Customer Facility Charge shall be held in trust by the Provider for the benefit of the Airport and shall be remitted monthly to the City in accordance with procedures established by the Airport Executive Director. Subd. 3. On or before the 20th day of each month, the Non-Tenant Provider shall provide the collected Off-Airport Privilege Fee to the manager of the Rochester International Airport. The Non-Tenant Provider must produce a statement showing the amount of Gross Revenue related to passengers picked up at the Airport. If the Fee is not paid within the calendar month of the due date, the Non-Tenant Provider shall pay a late charge equal to one and one-half (1 1/2 %) per month of the unpaid balance, accruing from the due date until paid. Subd. 4. The Airport Executive Director is authorized to establish and implement the procedures necessary for the collection of these fees. Section 2. This ordinance shall be effective as of the date of its publication. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS DAY OF , 2015. PRESIDENT OF SAID COMMON COUNCIL ATTEST: CITY CLERK APPROVED THIS DAY OF , 2015. MAYOR OF SAID CITY (Seal of the City of Rochester, Minnesota) Ord 15\42A 4 operating,tnaEnlalfiEng,ail([ 01101{iAI1Cf:q0.=1206 c1011010pb:g Ifla AliIroil. AN ORDINANCE CRE- Subd,3. The Cily adopts ATING AND ENACT- Ibis ordinanco In fudliar• INC, CHAPTER 42A anca or Its authority Lin- Of.' THE ROCHESTER - --- dot Mlnrf, slat. §360.03[1, CODE OF ORDINANCES, AFFIDAVIT � IT ®F P B ICATION subd, s o "rent l for Iho RFi-ATING TO RENT- 1'�`y � PUBLICATION�9-$� 1 1`iE charges or rental {or the AL CAR COMPANIES €150 ofGray f(-flrporlj trop. PROVIDING SERVICES orlics under Its coithoil and TdPERSONS ARRIVING ; State Of Minnesota County of Olmsted theraccos for ioant[isarl. AT Ot-1 DEPARTING t es ar aecomritndai ons and FROM THE ROCHE& 1110 torsos and conditions TL:Fi INTERNATIONAL 1 undar vehicit such proper- AIRPORT.THE COMMON i Site Lovc'o , being dui sworn on oath that she Is the publisher or authorized lips may he usod." COUNCIL OF THE CITY' � y g y p 42AA2, Dofinilfoits. OF ROCHESTER DO OR- went and employee of the publisher of the newspaper known as the Post- subdivifAm f. The term "Alrport'' rnto-nns Ii7p RtrC11- I)A1N: Bulletin, and has full knowledge of the facts which are stated below: aster rnrernnusI nb fprr Stiction 1. Chapter 42A r;wned and opofalc,ct {by atit) ilia ancesRoChIs Code' tile City of Rochostor, a of drdlnanses Is oreby (A) The newspaper has complied with all the requirements constituting Nfloslosolit nitrnidpal cor- acted load on•! potalion and a Minnosolrt acted T road A follows: qualifications as a legal newspaper, aS provided b Minnesota Statute nlunicf f tlfl CHAPTER AR g gp y subd.2, Tile farm"Cus• RENTAL CAR SERVICES 331A.02, 331A.07 and other applicable laws, as amended, tomer Fadifly Charge" Al THE ROCI-iES-rER IN-frfjdJATIONAL AIR- means a charge for ev PORT Ory Pay covered by teary B The tinted notice Ramal Car Conliact ott- �2AAt. Legislative Find- p Wind into b ear•.ta Pfovicl- in s, Dellnitlons, and Au- Y thority. Subdivision 1. Subd,3. Tho lent[ ou•ltli nail Privilege Fee. Which is attached was cut frorn the columns of said newspaper, and was Tho (ily ovrns, operates, Day" nlcans Iho titan tnainlalns, and devot• printed and published 1 time(s); it was printed and published on the following frorn midnlghl tp thO nOxl tlaidnlglll. Cps ho Rochostor filter national Alfport with, In dates: Subd. {. TIrO farm pmt, fedurnt grants, stale PB 08/22/2015Gross Raavenun" rnean;i 0+anis, passengor faculty ail ton;[ rand charges cot• loclod by it Ror,lal Car cnaifles, and user toes. IP13 08122{2015 13uslnuss Ifom all activities Otf•Alrpvd, nors•lonanl Rental Car Dusfnesses : and sorvicos f>urlCnnocl at aro aulhoi3zed to provlclo Ihv Alrf;uN incAltrinrl trust Rental Car services at 1110 : Printed below is a copy of the lower case alphabet from a to z both inclusive Doss Conducted od of rein Iixeci Airport lot Ilio accoinnioda• r baso operalOr or vrilhln a tion of passengers arriving which is hereby acknowledged as being the size and kind of type used In the thrao rano radltis of the Air- at or dopalling tram the Atli port 01cfudiog but not Ilm. uftfropaitngf(ot basad composition and publication of the notice: ted to reservations mado p through Iravol ar en• off the Airpoil. As Ilio recipient of Federal Avl• abode[ hiklmn rstu tilos and rosprvatwns alionAdmWstrationgranls, 9 i °pU '^"�� made by Ill op, fa on• the Alrport Is rorfulrod to POST-BULLETIN C MPANY L.L.C. lino rpsOrvaRons, facslm•. ustabllsll a toe slruclurp Ill), tolegraptr and Ol11or me Bans Ileal Will mako tho Airport ' �f ,✓�,/,;/�!.,_ of corntnunlCa. as self•suslalnin4 as pos- � Irons) rend{ncludirlg but oat sibla undor the clrcuni• ; r 11uFlted to alt hasp,flnle and rrtlloago fees and cratrga, stancos. Tile City deSlfOS TITLE: Media Inside Sales Manager front cuslonlefs picked tip Io ostabllsh loos to fro Collpciod frons an Oft•Air l 'fS�+463' ' ` 1�'uti'o` `1i'd1}1.`b`1i4 $ at Ilio Airpori, prlus rtli pail non•lenent nentai Car I Subscribed and sworn to mo on „`^ praialiums and enter fC:n:b tlusincss In oidcsr to of .' U JEkAN 1)tJl)1.17'! ��' anc{cbarcter, (rewinllossof c , hoer traoy only Iia denoin' rho costs of oporaltnn of This �..D djty of !f-0, 20 � �� naleci NO'fAf1Y r�f1iJI.IC-MINN[iSt)TA ) for tlarsona acci- thO Alrport, and to pstab• \ r -� c '�¢ � clout fnstrrancc3 coti�eracto, lisp constslency by those (/ 1 f "fas,�. My Conllll.UNP,jprl,31,2020 porsonal effect, nsur- providing services at the �/�°� •-�`} I t r Airport. Those floats con- Lam/ "�°+3v o�Qc^,°�a J ria ^��` , � ;�`i a� anee Covrrugo, sonzl Iributo toward lite achfovo• NOS ry Public Offocls prolucbon Insur- ance covolaufs, liability in- rnerlt of flnancfal salf•sullt- RATE INFORM/MON stisance stir;pPlontoni, ad- c{orlcy at Iho Airport. dilional liability insuranco Subd.2. Cuslornor Full- Covofauo, and all oiltor fly Charge. The City has 1) Lowest ciassifed rate paid by commercial user $21.95 lypec and I(Inds of insur- undortakon a capital Im• F provomont program to la For comparable space (per irichlper day/display rate) once covoracios mace fldl- cilitalo major customer Bar- CIOs {tat wird uss of low vice ltalprovomafll5 at the Illey are rlenernlfiated, Airport Including Ilia plan- 2) Publication Fee $533.74 rega«Ifess of Ihu parhus Hing and dovofnprnont of covered, and rnganJlcss 01 a rerjuvoloped lorminal tile risks Insured l!!.ow s building, The City owns, pus all sours for ii4cuianco oporalas, mrllnlalns and Ad Ji 1431M ORDINANCE NO,4205 AN OHDRIANCE CREA walvars, cofllslon clanlage rport Willi, amt loss dafllapn fovnlOps I1te Al in paft,lederal grants,pas- vredd, , lr jcl i l[ cash t. Bangor lacitity charges and crclod rind €l;of:l d, 'dos user loos. Customer Fadl• lotted or unotho r.lue pled ily Charges have become chafgall scuts Cr Mbar lues to cI common tinanclng tools or I., milia d�to rer.c f©idor ,Int for airport InlprovailloWs, ilia City of Roclhostor be- `. rented fi motor vu, plus Ileve5 It wovild be bonolb ranted fpr of otnure, {flus Cfal to prOvfda Iho updated alt Burns or olllaf[pas and arid expanded lormfnal and charges PfovlclOr Focoivos, associated alrpvrt Improve• or h; entitled to receive, Monts to the iraveling pub- for the uipin nt arty v s I:c Including updating Ilia Coll onus, non[ such as rental car torMlnal facill- colt phpnos, GPs racks (i (] Res. The city ciosiras iupgago or ski racks and to a ostablfsh Cuslotllpr In and reels plc; ail surd. Facillty Chargo to be co)- or oidar teas and chargm; lotted frorn a Ronlal Car tilted or nareivo. or Is um Businoss custornor In of, liond dr rocelvn, tr}r flov. clot in offset ilio costs of Ifnnal drivers. t Gins Rov- onu0"shall oat lnrlirdo (a) fedorai, stato Cr nunf spat ,9111130 lax Sofrtrratvly slrrtr-cr and c0eclod born Crrstanl- ors by 4110 Pfovicdor,ydio0j. - -- - - - ----- - Of 110w or Ifemincitlur let•iucl or imposed soparr:loly cfnt- od ort the toiliai agmam0nt aridcolisclec!frCM cuslena• SLIMS COilected as a CUS- to€nor Facility Chargn. sullu.1. 1110 lonn°Non- E"onnnf Prnvidor' ntaarls a Rental Car business pro• vlding Its Seivlras to per- sons arriving or depart- Ing frorn tiro Rochester International Airport from malof vehicle Is dropppOd it location not found upon oil by the customer Oiso• M,lortproporty. where, 42A.04. Impo- 5olni.Fi. The Corm "Off• 811ton of Foos. The Cum- Airport P60logo Fee' mon Council may Impose rnwans a lea imposed upon an Off- Airport Priwleua a Hort-Tonant Provider's Foo upon a Nott-Tonant Gross 111MAU0. Provider's Clross Revenue, Subcl.7, rhe torn) "Pro• Tho Common Council May vider'moans a Non-Tonant impose a Customer Faclllty Ptovkfer or a Tenant Pro, Charge per Day covered vidar, byy I Rental Car Conl(aGI. stubd.8. "rhetorm"Rent- Tlie amount of the fee at Car 130ness" means or Chargo will be dalor- any parson enuaged In mined by Council resolu- thO business of providing lion. IienL-a Car Sorvlres. 42A.05. Collection, Da- Suhd.0. Tho tell))"float• livory, and Use of Fees. a1 Car Contract" moans Subdivision 1. Each Pro- a conlracl for Rental tsar viler will collect a Custom- sorvicos butyreen a Pro- or Facility Chargo. Each vidlor and a customer. Non-Tenant Provider Wil{ Suhd, 10. "rhe tern) collect an Off-Alrporl Privi- "nowid Cat Serviras" lege Foe, means tho raiMal of nto- Subd, 2, Tito Customer tar vOhkClos to Ilia traveflrrg FaCMWy Charge shall be pulAc. held In trust by the Pro- SiJIA, 11. -rhe torn) vidur for tiro bonelll of the Tonam Provider' moans AlrEtort d shall be femll- a Runtal Car Business terJ monanl(tly to the Clly in providing ils services 10 accordance with pioce- porcana OnWiaq or (to. dares astablishad by the parlirn Irons the Ftarh- Ab fsort Executive Dlroctor. Osler hilafrulllonll Airport Subd.3• On or Were from it location found upon file 70111 day of 011th Atrpwt piopoilYy. rnonllt, the Non Tenant ,12A.M. 0%rrnlnatlon Provider shall provide the of Glass Finvenu0. Sub- cnlleclod Off-Airport Privl- divisian i. Grnss Rev. lego Fee to ilia manager of Paulo shall be doomed rho Ilachoster itlofna- recuived at the limo the flonal Mrparl. The No:)- Renlai Car Contract is To)ant Providef must pro- executed givinu rise to duce+a statement showing Non-Fonont Provider's dile amount of Cross men-to coltuel said on• enue related to passen- las, rel;atdlass of whoiher gerspplckod ups at the Air- said IfansacHon was eon- purl. If lits Fee is not pald ducied in person, by into. within ilio Calendar 111411th phone or by mail, tvheth. of the dile date, 111e Non- ; or t€ae taatsactlon was Tonlull ProvidOr shah Pay for crash or crodil, and a late charfl0 erlual to one If for Credit,regardless Of and One-half(1 112%)per whelher Itta lion-Teunnt month of the unpaid hal- Provider ullifilatoly collects Inca, accruing frOrn 1110 th+a nionlas nwod for saki due data unlif paid, t(ansactica front the cus- 5ubd. -I, rite Airport Corner Involved. Grass ExaCnitve Direolar 1s Oil- 11vanuo are arnourils thclized to establish Ind watch the Non-Tenant Pro- Implement the procodures Odur rrcoivus or is entitled necessary for thecollet• to roceivo,oithor dnitlaily or tion of those foes, Section ny aniondinenf, whlchever 2. This ordinance shall is growler, bo oliecllve Is of the date Sui3d,2.. f-or purposes of of Its ppubllcatlon. Gross Rovonue deterutl- PASgEi:) AND ADOPT- nolion, revenue shall be ED BY *(FIE COMMON daunted to have been ra- COUNCIL. OF CI IE latrid to cuslomars picked CITY OF ROCHESTER) Lift at €heAirport II Iho MINNF;SOTA, THIS 1701 cuslomer a,rivod at Other DAY OF AUGUST,2015. Adrfaufl within a 24-hour Asl Randy Slaver period ininiadiataly life, PRCSIOEI-IT OF SAID cedinr3 lire rental, oven COPAMON C0101011- illou�h the Customer ar- ATTEST: rWall al the providnfS IO- 151AeronS.Rersves cation tin Ihelr own or the CITY CLERIC APPROVCD THIS 20t11 DAY OF AUGUST, 20115. 19/Ardall 17.13 rade MAYOR OF SAID CITY (Said of the City at 1tuc11osler,Minnesola)