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 AMERICAN AIRLINES, INC. concerning a use and lease agreement for rates and charges to provide passenger services at Denver International Airport.
Approves a Lease and Use Agreement with American Airlines, Inc., (American) applying rates and charges and for a for a term of one year with 2 one-year extensions options, and leasing space and gates at Denver International Airport, in Council District 11. PLANE- 202370503. 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?
Council District 11
Contract Control Number:
PLANE-202370503
Vendor/Contractor Name (including any “DBA”):
American Airlines, Inc., (American)
Type and Scope of services to be performed:
This request is for a new Use and Lease Agreement (ULA) with American. This is a new ULA to allow American to remain a signatory carrier at DEN for a term of one year with two optional 1-year extensions.
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 specifies 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 |
|
One-year and two one-year extension options |
N/A |
12/31/2024, with two one-year extension options |
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
If length changing
What was the length of the term of the original contract?
What is the length of the extension/renewal?
What is the revised total term of the contract?
If cost changing
What was the original value of the entire contract prior to this proposed change?
What is the value of the proposed change?
What is the new/revised total value including change?
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)