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Item # 19.

Council Meeting

Meeting Date:	10/12/2021
Department:	Airport
Pillars:	Excellence in Transportation Systems
Milestones:	Leverage Airport assets to maximize business growth and expansion

AGENDA CAPTION:

Consider Action on an Ordinance Authorizing User Fees for International Flights Arriving at Addison Airport.

BACKGROUND:

The purpose of this item is to consider approval of an ordinance imposing user fees for basic U.S. Customs clearances for international flights arriving at Addison Airport. Implementation of these user fees is intended to defray a portion of the costs of providing U.S. Customs services for international aircraft arrivals at Addison Airport.

Addison began offering U.S. Customs services under the Customs User Fee Airport program in 1994 and has provided these services continuously since then. User Fee Airports are required to reimburse Customs and Border Protection (CBP) for all costs of providing Customs services, including overtime expenses incurred by CBP officers providing clearance services outside of normal business hours. User Fee Airports are permitted to charge fees to users to recover the costs of providing those services. Addison has not previously charged for providing clearance services, even though it was and is entitled to do so, other than a direct pass-through to users of overtime charges incurred for after-hours arrivals.

The decision not to charge for clearances at Addison appears to have been made for both competitive and philosophical reasons. The competitive reason was that there were three area airports (Dallas - Fort Worth International, Dallas Love Field, and Fort Worth Meacham Airport) offering Customs services free of charge. The philosophical reason was that Addison at that time favored a full-service, everything-included business model over a fee-for-service model. Dallas Love Field (DAL) implemented Customs user fees in 2015. Fort Worth Meacham (FTW) implemented user fees in 2019. Fort Worth Alliance (AFW) charged a fee from the time it joined the User Fee Airport program in 2003. Implementation of user fees at these airports has significantly altered the local competitive environment.

In light of changes in the local market and in recognition of the cost of providing a new Customs facility, airport staff is seeking to implement user fees at Addison when U.S. Customs begins to provide services from the new facility.

United States Customs User Fees
Maximum Gross Take Off Weight		Fee Amount
Rate 1	Up to 12,500 pounds	$100
Rate 2	12,501 to 50,000 pounds	$200
Rate 3	Over 50,000 pounds	$400

Overtime charge: flat fee of $200
Regulated Garbage disposal fee: $75

Normal hours of operation will be 10:00am to 7:00pm Monday through Friday. Arrivals outside of these hours will incur the overtime charge.

User Fee payments will be collected by means of an automated kiosk located on the airside of the entry to the CBP facility.

RECOMMENDATION:

Administration recommends approval.

Attachments
Customs User Fee Ordinance
Presentation from 9-28 Work Session