8-6-1: Car Rental Customer Facility Charge
A. Definitions: As used in this section, the following definitions apply:
AIRPORT, THE AIRPORT OR BOISE AIRPORT: The approximately four thousand nine hundred (4,900) acre area of Boise Airport, a division of the Boise City Department of Aviation and Public Transportation, which is a division of Boise City.
CHARGE EFFECTIVE DATE: The date on which the customer facility charge is effective as provided in subsection C of this section.
CITY OR THE CITY: The City of Boise City.
CUSTOMER FACILITY CHARGE OR CFC: The charge imposed by a car rental company upon a car rental customer arriving at the airport and renting a vehicle from an on airport or off airport car rental company serving the airport. The amount of the CFC shall be as established by the City Council. The CFC shall be collected by the car rental company for the benefit of the airport, pursuant to subsection C of this section.
OFF AIRPORT: A car rental company that is not located at the Boise Airport but which does business at the airport.
ON AIRPORT: A car rental company that is located at, upon or within the Boise Airport.
TRANSACTION DAY: That period of time a car is rented for twenty five (25) or fewer hours for the initial or first transaction day, and any portion of one or more additional twenty four (24) hour periods for each transaction day thereafter. (1952 Code § 12-22-01; amd. 2019 Code)
B. Findings And Purpose:
1. Findings: The City finds that:
a. The City owns and controls certain airports and facilities located in Ada County, State of Idaho, and known as Boise Airport; and
b. The airport promotes and supports a strong economic base for the community, assists and encourages world trade opportunities, and is of vital importance to the health, safety and welfare of the State; and
c. The operation of Boise Airport as a public facility attracting scheduled airline passengers who use car rental facilities at the airport imposes financial responsibility on the City for car rental facilities and operations; and
d. The City will expend substantial resources for capital investment, operation, maintenance and development of the car rental facilities to meet the future demand for customers using the Boise Airport or its facilities; and
e. It is in the City's best economic interest, and likewise in the interest of the car rental customers and car rental companies, to adopt a Customer Facility Charge (CFC) Program as identified in this section to maintain, improve and further expand the car rental facilities of the airport; and
f. In establishing and implementing the Customer Facility Charge Program, the car rental customers using the airport should contribute to a greater degree toward the development and improvement of car rental facilities; and
g. The fees implemented by this section are reasonable for the use of the airport and car rental facilities by the general public.
2. Purpose: The purpose of this section is to enact a Customer Facility Charge Program consistent with the above findings and this section and the regulations published pursuant thereto shall be liberally construed to effectuate the purposes expressed. (1952 Code § 12-22-02)
C. Car Rental Customer Facility Charge:
1. Commencing not later than sixty (60) days after the approval and publication of this section by the City Council, or on such date thereafter as the customer facility charge can be collected, as determined by the Airport Director ("charge effective date"), the Airport Customer Facility Charge Program authorized by this section shall be imposed.
2. The CFCs shall be used to pay or reimburse the airport for the costs associated with the design, planning and construction of facilities or improvements exclusively used by the rental car companies located at the airport. Any or all of the CFCs collected may be pledged to the punctual payment of debt service on obligations issued by or on behalf of the airport for the cost of the car rental portion of the parking garage expansion, and to create and maintain reasonable reserves. Eligible costs for the car rental facilities shall include all costs, fees and expenses associated with the planning, design, equipping, construction and other related costs for the development, improvement or acquisition of car rental facilities. Eligible costs for the related transportation facilities and equipment shall include operating costs in addition to the foregoing costs. Nothing herein shall be construed to make fees or costs incurred in tenant improvements for space exclusively used by a car rental company ineligible.
3. The CFCs shall be used to pay or reimburse the participating car rental companies for reasonable and necessary consulting and attorney fees, as determined by the Airport Director, which are directly related to their participation in facility projects.
4. The CFC fees imposed by car rental companies shall be identified on separate lines on the car rental customer contract, before taxes, and shall be described as the "transaction fee" or "facility fee".
5. There shall be no suspension of CFC collections unless all of the following occur:
a. All car rental companies operating at the airport have timely and accurately remitted their CFC collections to the airport, together with the required reports of transaction day data.
b. The City has completed all design development, architectural and engineering drawings for the facility construction or improvements.
c. Sufficient CFC proceeds have been collected to reimburse the airport for the costs identified in subsection C2 of this section incurred through the completion of design development and to reimburse the participating car rental companies for the costs identified in subsection C3 of this section.
d. The airport has not entered into the construction phase of the project.
e. The CFCs have not been pledged to the payment of debt service on obligations issued by or on behalf of the airport or the City.
6. Following any suspension of CFC collections under subsection C5 of this section, the Airport Director shall consider relevant economic factors and consult with the airport on and off airport car rental companies regarding such factors and review the size, scope and projected costs of the car rental facilities or improvements prior to reimposing the CFC collection requirement.
7. The customer facility charge authorized by this section shall expire on the date determined pursuant to car rental leases for on airport car rental companies.
8. The Airport Director or designee is authorized to execute the authorization of the City CFC Program, including the assurances contained therein and other documents necessary for implementation of the CFC Program on behalf of the City. (1952 Code § 12-22-03)
D. Eligible Projects: The customer facility charge collected pursuant to this program shall be expended solely for rental car projects approved by the Airport Commission and the City Council. (1952 Code § 12-22-04)
1. All CFCs collected by all car rental companies are and shall be trust funds held by the car rental companies for the benefit of the airport. Car rental companies and their agents hold only a possessory interest in the CFCs, and no legal or equitable interest. All car rental companies shall segregate, separately account for and disclose all CFCs as trust funds in their financial statements, and shall maintain adequate records that account for all CFCs charged and collected. Failure to segregate the CFCs shall not alter or eliminate their trust fund nature. The airport shall have the right to audit the CFC records upon reasonable notice.
2. All car rental companies shall remit all CFCs that were collected or should have been collected from its airport customers on a monthly basis to the airport, together with the monthly statement of transactions and transaction days. The CFCs shall be remitted by the last day of the month following the month the CFCs were collected. Failure to strictly comply with this subsection shall be considered a material breach of the car rental company's authorization to do business at the airport.
3. Collection of the CFCs shall be limited to the first fourteen (14) transaction days of any car rental customer contract, to limit the remittance by any car rental company on any car rental customer contract to fourteen (14) times the CFC. (1952 Code § 12-22-05)
F. Violations: In the event any car rental company violates any term or condition of this section, the airport or City may exercise any rights or remedies allowed by law or equity. (1952 Code § 12-22-06)