009 of 2011 - Amending Chapter 16 by adding a new Section 16.12.195 to Article I of Title 16 to create & establish 0 11-1
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SALT LAKE CITY ORDINANCE
No. 9 of 2011
(Amending Title 16 to include a
customer facility charge (CFC) and provide for
the disposition and accounting of funds collected as a result of the CFC)
An ordinance amending Chapter 16, Salt Lake City Code, by adding a new
section, 16.12.195, to Article I of Title 16 to create and establish a customer facility
charge; and amending section 16.12.200, pertaining to funds; disposition and
accounting, to include the funds received from the customer facility charge.
WHEREAS, Salt Lake City Corporation (city) owns and operates the Salt Lake
City International Airport through its Department of Airports; and
WHEREAS, the city enters into concession and lease contracts with on-airport
rental car companies that serve airline passengers at the airport; and
WHEREAS, the city has the authority to establish fees and charges for the use of
services and facilities by rental car companies and customers at the airport; and
WHEREAS, the CFC is to be used for the purpose of paying for the city's costs
associated with all facilities used for rental car concessions or for any rental car related
purpose deemed appropriate by the city, including without limitation, payment or
reimbursement of city's costs associated with construction of rental car facilities, and
related transportation facilities and equipment, payment of debt service on obligations of
the city for the cost of such facilities and equipment, the creation of reasonable
reserves, or for such other rental car related purpose as the city determines; and
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WHEREAS,it is in the best interest of the city and the public to impose a CFC on
transactions for the rental of a vehicle from all on-airport rental car companies;and to
require such rental car companies to collect and remit CFC funds to the city for the
purposes specified in the ordinance;and
WHEREAS,after a hearing before the City Council,the City Council has
determined that the following ordinance is in the best interest of the City.
NOW,THEREFORE,be it ordained by the City Council of Salt Lake City,Utah as
follows:
SECTION 1.That Chapter 16,Salt Lake City Code,be and the same hereby is,
amended to add Section 16.12.195,to read as follows:
16.12.195:CUSTOMER FACILITY CHARGE:
A. There is hereby imposed a Customer Facility Charge(CFC)on each transaction
day,up to and including a maximum of 12 days per contract,for the rental of a
vehicle from an on-airport rental car company(Airport Rental Car Company).
B. The Executive Director of the Salt Lake City Department of Airports or designee is
authorized to implement and administer the CFC program on behalf of the city,
through concession and/or lease contracts or other means,including without
limitation,the rules and regulations of the airport.The CFC charges may be pre-
collected for future use,as specified in 16.12.200.
C. The CFC shall not exceed$5.00 per transaction day during the first year following
the effective date.Thereafter,the method of calculating the CFC and the amount of
such CFC shall be determined by the Executive Director of the Salt Lake City
Department of Airports on behalf of the city.However,the CFC shall not exceed
$10.00 per transaction day.City may at any time and for any reason,change the
amount of the CFC or discontinue it upon written notice to any affected Airport
Rental Car Company.
D. The Airport Rental Car Company shall collect the CFC and shall hold the CFC in
trust for the benefit of the city.The CFC at all times shall be property of the city and
the Airport Rental Car Company shall have no ownership or property interest in the
CFC.The Airport Rental Car Company shall segregate,separately account for and
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disclose all CFC's as trust funds in its financial statements,and shall maintain
adequate records that account for all CFC's charged and collected.
E. Airport Rental Car Companies shall list the CFC separately on its customer invoice,
describing it as a"Customer Facility Charge."
F. The Airport Rental Car Company shall remit directly to the Salt Lake City
Department of Airports on a monthly basis all CFC's that were collected or should
have been collected from its airport customers.The CFC's shall be received no later
than the last day of the month following the month in which the CFC's were
collected.
G. The Airport Rental Car Company shall submit to the Salt Lake City Department of
Airports on a monthly basis a transaction report,which includes transaction days,a
summary of daily business transactions in connection with the airport,an accounting
of all fees charged to airport customers in connection with such transactions,and
such other information as required by city in form and substance satisfactory to the
Salt Lake City Department of Airports.
SECTION 2.That Chapter 16.12.200,Salt Lake City Code, pertaining to Funds;
Disposition and Accounting related to the Salt Lake City Department of Airports,be and
the same hereby is,amended to read as follows:
16.12.200:FUNDS;DISPOSITION AND ACCOUNTING:
A. All funds received from fuel,taxes,rentals,concessions,customer facility charges,
or any other source by the airport shall be placed in the airport enterprise funds and
kept separate and apart from all other city funds.The collection,accounting,and
expenditure of all airport funds shall be in accordance with existing fiscal policy of
the city.
B. Funds received from customer facility charges shall be used for paying the city's
capital costs for construction and improvement of rental car facilities at the airport,
including costs that support environmental sustainability;paying a pro rata share of
city's costs for joint-use infrastructure,such as roadways,ready-return and quick-
turnaround areas allocable to rental car usage;building reserves for renewal and
replacement capital costs;paying common costs of a shuttle bus operation for rental
car customers;funding transportation costs and other costs associated with interim
operations during construction phasing and relocation of rental car operations;
paying the city's costs for infrastructure for future lease areas for service center,
including site prep;funding debt service associated with rental car facilities;or
funding city's costs for such other rental car related purpose as the city determines.
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SECTION 3. This ordinance takes effect upon first publication.
Passed by the City Council of Salt Lake City, Utah this 1st day of
March , 2011.
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Transmitted to Mayor on
3-1-2011 RAORA'Tti5
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Mayor's Action: ) Approved. Vetoed.
MAYOR
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Published: 3-11-2011 "` *06`
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