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08032010 Regular Meeting
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08032010 Regular Meeting
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City Clerk - Document
Minutes
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Regular Meeting
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8/3/2010
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AC 150/5190 -6 1/4/2007 <br />aeronautical service provider at the airport. An airport sponsor's refusal to permit a single FBO to <br />expand based on the sponsor's desire to open the airport to competition is not a violation of the grant <br />assurances. Additionally, an airport sponsor may exclude an incumbent FBO from participating under <br />a competitive solicitation in order to bring a second FBO onto the airport to create a more competitive <br />environment. <br />A lease that confers an exclusive right will be construed as having the intent to do so and, therefore, <br />be an exclusive rights violation. Airport sponsors are better served by requiring that leases to a single <br />aeronautical service provider be limited to the amount of land the service provider can demonstrate it <br />actually needs and can be put to immediate productive use. In the event that additional space is <br />required later, the airport sponsor may require the incumbent service provider to compete along with <br />all other qualified service providers for the available airport land. The grant of options or preferences <br />on future airport lease sites to a single service provider may be construed as intent to grant an <br />exclusive right and therefore, the use of leases with options or future preferences, such as rights -of- <br />first refusal, must generally be avoided. This is because a right of first refusal can allow an existing <br />tenant, at little or no cost, to hold a claim on airport land that could be used for a second FBO, then <br />lease that land when there is a prospect of competition. <br />4. Monopolies Beyond the Airport Sponsor's Control. Certain exclusive franchises exist on public <br />airports that are sanctioned by local or Federal law and do not contravene the FAA's policy against <br />exclusive rights agreements. One such franchise that exists at most public airports is UNICOM, <br />which provides frequencies for air -to- ground communications at airports. The Federal <br />Communications Commission (FCC), which regulates and authorizes the use of UNICOM <br />frequencies, will not issue more than one ground station license at the same airport. Thus, an <br />exclusive franchise is created. A legally supported franchise, such as UNICOM, grants the recipient <br />licensee an advantage over competitors, but does not result in a violation of the agency's prohibition <br />against exclusive rights. In cases such as this, the FAA recommends that the airport sponsor obtain <br />the subject license in its own name. Using droplines, the airport sponsor can then make the facility <br />available to all fixed base operations on an as needed basis. Regardless of which method the airport <br />sponsor uses, control over the facility must be held by the individual or entity that holds the license. <br />1.5. THROUGH 1.8. RESERVED. <br />SECTION 2. THE ENFORCEMENT PROCESS <br />2.1. AIRPORT COMPLIANCE PROGRAM. The FAA ensures airport sponsor compliance with <br />Federal grant obligations through its Airport Compliance Program. The Airport Compliance <br />Program arises from requirements in the Airport and Airway Improvement Act of 1982, as <br />amended, 49 U.S.C. § 47101, et seq., and the airport sponsor's agreement to comply with the <br />assurances contained in the grant agreement in exchange for Federal airport development assistance. <br />The Airport Compliance Program is designed to maintain a system of safe and properly maintained <br />airports that are operated in a manner that protects the public's interest and investment in a national <br />airport system. <br />a. Under the Airport Compliance Program, any person who believes that an airport sponsor may be <br />in noncompliance with a grant assurance may register their concerns with the local FAA Airport <br />District Office (ADO). ADO personnel may investigate informally under 14 C.F.R. 13.1 the <br />allegations of noncompliance and, in the event that the allegations are confirmed, attempt to persuade <br />the airport sponsor to come back into compliance. Should this measure prove unsatisfactory, the <br />concerned party may file a formal complaint under 14 C.F.R. Part 16, Rules of Practice for Federally- <br />
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