TITLE
Consider a memorandum/resolution to implement a privilege fee for non-tenant rental car companies providing customer services at the Killeen Fort Hood Regional Airport and Skylark Field.
SUMMARY
DATE: October 23, 2018
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: APPROVAL OF A RESOLUTION TO IMPLEMENT A PRIVILEGE FEE FOR NON-TENANT RENTAL CAR COMPANIES PROVIDING CUSTOMER SERVICES AT THE KILLEEN FORT HOOD REGIONAL AIRPORT AND SKYLARK FIELD
BACKGROUND AND FINDINGS:
The Killeen-Fort Hood Regional Airport leases retail facilities in the terminal building to various businesses to provide appropriate services to the public as well as to provide revenue sources for the airport enterprise fund; the rental car industry is one such business. However, off-airport, non-tenant motor vehicle rental services are authorized at the Airports for the accommodation of passengers arriving and departing from the Airport, and these non-tenant Providers rent motor vehicles to the general public from a location or locations based off the Airports.
This resolution would establish fees to be collected from off-airport non-tenant rental car companies (Providers) providing customer services (e.g., passenger pick-up or drop-off) to passengers for motor vehicles for rent to offset the costs of operation of the Airport.
Staff has proposed, effective beginning on January 1, 2019, an Off-Airport Privilege Fee of ten-percent (10%) of Providers gross revenue, for all revenue related to customer services at Killeen-Fort Hood Regional Airport or Skylark Field Airport.
The Airports, being recipients of Federal funding, are subject to policies which require a fee structure that will make them as self-sustaining as possible; and, in establishing and implementing this fee, the off-airport, non-tenant Providers of rental car services using the Airports will contribute toward the achievement of financial self-suf...
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