O 2020-0371 ORDINANCE AMENDING CHAPTER 9, AVIATION, OF THE CODE OF ORDINANCES, HOUSTON, TEXAS, relating to the implementation and collection of a Customer Facility Charge to fund a Consolidated Rental Car Facility at William P. Hobby Airport; revisions to the range of charges for Aircraft Parking and Air Cargo Operations; the City's Regulation of Transportation Network Companies at the Airports

RECOMMENDATION:
Enact an ordinance amending Chapter 9 of the Code of Ordinances, Houston, Texas (Aviation), including implementation of a customer facility charge at William P. Hobby Airport (HOU) and other updates.

SPECIFIC EXPLANATION:
Currently, certain rental car companies operate under rental car concession agreements at HOU. The rental car concessionaires agreed under a Memorandum of Agreement (MOA), approved by Ordinance 2019-145 on March 20, 2019, to engage in planning efforts to determine the viability of developing a Consolidated Rental Car (CONRAC) facility at HOU in order to improve the passenger experience and operation in renting cars at HOU. Pursuant to the MOA, a customer facility charge (CFC) will be implemented through Chapter 9 to pay for the planning efforts and ultimately the construction and operation of a CONRAC at HOU, and such CFC shall be required to be collected and remitted to the City by all rental car users accessing HOU. Additionally, pursuant to the MOA, a portion of the CFC collections will be used to reimburse the City for environmental remediation of former rental car sites at George Bush Intercontinental Airport/Houston (IAH).

The pertinent terms of this Chapter 9 amendment are as follows:

1. CFC: A CFC, initially set at $4.00 per transaction day, will be implemented on January 1, 2021. If it is determined by the MOA parties that the HOU CONRAC project is not viable, the CFC collection shall cease after the planning costs and environmental remediation costs have been fully recovered.

2. TNCs: The 85th Legislature of the State of Texas adopted House Bill 100, including the regulation of transportation network companies (TNCs) by the State and the City, requiring an occupational permit, and authorizing a fee. Chapter 46 was previously amended. Chapter 9 is now amended pursuant to such regulations.

3. Aircraft Parking Fees: Chapter 9 updates a range of aircraft parking fees at City airports based on aircraft size.

4. Other: Chapter 9 allows an airline to request space at HOU and Terminal A at IAH. The amendment to Chapter 9 will also extend this to Terminal D at IAH. Additionally, the amendment includes minor changes to definitions and other administrative procedures.

Director’s Signature:



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Mario C. Diaz
Houston Airport System