Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 1-1-2024
Requesting Agency: DEN
Division:
Subject Matter Expert Name: Kevin Forgett
Email Address: Kevin.forgett@flydenver.com
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Agreement between the City and County of Denver and AEROENLACES NACIONALES, S.A. de C.V. d.b.a VIVA AEROBUS concerning a use and lease agreement for rates and charges to provide passenger services at Denver International Airport.
Approves a Use and Lease Agreement with Aeroenlaces Nacionales, S.A. de C.V. d.b.a Viva Aerobus applying rates and charges and for a term of one year with 2 one-year extension options and leasing space at Denver International Airport, in Council District 11. PLANE-202370552. The last regularly scheduled Council meeting within the 30-day review period is on 2-5-2024. The Committee approved filing this item at its meeting on 1-3-2024.
body
Affected Council District(s) or citywide?
11
Contract Control Number:
PLANE-202370552
Vendor/Contractor Name (including any “DBA”):
Aeroenlaces Nacionales, S.A. de C.V. d.b.a Viva Aerobus
Type and Scope of services to be performed:
This request is for a new Use and Lease Agreement (ULA) with Viva Aerobus to allow Viva Aerobus to be a signatory carrier at DEN for a term of one year with 2 one-year extension options. With this agreement, DEN will lease Viva Aerobus 236.5 square feet of office space in the terminal to support flight operations.
To be classified as a Signatory air carrier, an airline must execute a Use and Lease Agreement with DEN and meet certain criteria set forth in DEN rules and regulations. Based on their commitment to DEN, Signatory air carriers pay reduced rates and charges. DEN currently has 23 passenger air carriers, of which 18 are seeking to continue their signatory status. Three carriers have long term signatory agreements through 2035, United, Southwest and Frontier. Two airlines do not qualify for signatory status. DEN recently gained two new international airlines and we are working on their signatory agreements to send to council shortly.
Airline rates and charges are established on “cost recovery” concepts whereby the annual cost of operating DEN forms the basis for the rate, fee, or charge assessed to the airlines. The Airport recalculates airline rates and charges each year based on its operating budget, debt service, amortization and projected aviation activity levels and reconciled at year-end based on actuals “true-up.” The airline/airport use and lease agreement specify the types of costs that are used to calculate airline rates and charges. Examples of rates and charges include landing fee (fee for every time a plane lands on the runway), Terminal Complex rental rate (Per square foot rate to lease space in the Terminal (e.g., office, holdroom, ticketing)), concourse ramp, fee to recover the cost of leasing the ramp area associated with a gate, Automatic Guideway Transportation System (Passenger fee to use the train system between the terminal and concourses).
Location (if applicable):
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
N/A
Are WBE/MBE/DBE goals met (if applicable)?
N/A
Is the contract new/a renewal/extension or amendment?
new
Was this contractor selected by competitive process or sole source?
Sole source
For New contracts
|
Current Contract Amount (A) |
Additional Funds (B) |
Total Contract Amount (A+B) |
|
Rates and Charges |
N/A |
Rates and Charges |
|
Current Contract Term |
Added Time |
New Ending Date |
|
January 1, 2024 to December 31, 2024 with 2 one-year extension options |
N/A |
January 1, 2024 to December 31, 2024 with 2 one-year extension options |