Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS Chapter 13B, 45.453, 174.504, 183.011(2),
(5)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 174.504 requires the
cabinet to promulgate administrative regulations establishing fees for users of
the services and facilities of the Capital City Airport (CCAD) and for the
usage of state aircraft. This administrative regulation establishes hangar
fees, tie-down fees, fees for fuel and lubricants, fees for aircraft services,
and usage fees for state aircraft pursuant to KRS 174.504.
Section 1. Definitions.
(1) "Aeronautical activity" means an activity
that involves, makes possible, or is required for the operation of aircraft or
that contributes to or is required for the safety of operations.
(2) "Aircraft" is defined by KRS 183.011(2).
(3) "Airport" is
defined by KRS 183.011(5).
(4)
"Airport manager" means the designated individual appointed by the airport
owner authorized to administer and manage the operations of the airport and
airport facility.
(5) "Aviation
fuel" means a specialized type of petroleum-based fuel that is used to power
aircraft including jet fuel and aviation gasoline.
(6) "Fixed cost" means the cost or expense of
operating aircraft that result from owning and supporting the aircraft
including costs for insurance.
(7)
"Hangar" means a type of enclosed structure designed to hold one (1) or more
aircraft and items incidental to the operation and maintenance of the stored
aircraft.
(8) "Hobbs meter" means a
device that measures elapsed time that is wired in series with the collective
control and a switch activated by engine or transmission oil
pressure.
(9) "Lease" means the
written contract between the airport or airport owner and a lessee specifying
the terms and conditions under which the lessee may conduct commercial or
aeronautical activities on or at the airport.
(10) "Periodic cost" means the cost or
expense for modernization, painting, or refurbishment.
(11) "State aircraft usage" means the use of
state aircraft for on-demand air transportation by state officials and
employees traveling on official state business.
(12) "T-hangar" means a type of enclosed
structure designed to hold a single aircraft in protective storage.
(13) "Tie-down" means an outdoor spot used by
smaller aircraft to park that usually has a set of three (3) ropes for tying
down the aircraft.
(14) "Variable
costs" means the costs or expenses that vary depending on how much an aircraft
is used including crew fees, maintenance, fuel, and landing and tie-down
fees.
Section 2. Rates
and Charges.
(1) The airport manager shall
maintain a current schedule of rates and charges for the use of the airport and
its facilities.
(2) Unless
otherwise provided by lease or agreement, a person shall not use an area of the
airport or the airport's facilities without payment of the rates and charges
established in this administrative regulation except areas designated for open
use by the general public.
Section
3. Hangar Fees.
(1)
(a) The rental fee for a hangar shall be set
at a fixed price per square foot of the leased space and calculated by
multiplying aircraft length x width x seventy-five (75) percent x cost per
square foot.
(b) Pricing for the
cost of a T- hangar shall be based on the size of the hangar and calculated by
multiplying the square footage x cost per square foot.
(2) The cost per square foot shall be:
(a) $0.21 for small single engine airplanes
and helicopters; and
(b) $0.24 for
larger twin engine airplanes.
Section 4. Tie-down Fees.
(1) Tie-down and parking rent fees shall be
set at a fixed price consistent with the average rate for tie-down spaces at
other airport facilities in the geographical area.
(2) Transient aircraft shall be charged a
nightly rate for tie-down storage. The fee for the first night shall be waived
if fuel or other purchases at the airport exceed the tie-down fee.
(3) Prior to the beginning of each fiscal
year, the airport shall review the rates and charges for transient aircraft and
compare them with the rates in effect at non state-owned airports in the
geographical region.
Section
5. Building and Office Lease.
(1)
Fees for building or office lease shall be set at a fixed price per square foot
of the leased space.
(2) The fee
shall be calculated pursuant to the guidelines established by the Finance and
Administration Cabinet in State Facility Rent and Utility Rates on the State
Budget Director's Web site at
https://osbd.ky.gov/Documents/KBUD%20Information/1820%20KBUD%20Information/Facilities_rates_18-20.pdf.
Section 6. Payment.
(1) Rent may be paid to the airport in one
(1) of the following ways:
(a) Issuance of a
check made payable to the Kentucky State Treasurer; or
(b) Use of a major credit card.
(2) Rent shall be paid as detailed
in the tenant's lease and as established in paragraphs (a) and (b) of this
subsection. Rent shall be paid:
(a) Annually
in full with the first annual payment on or before the date the lease begins
with subsequent payments yearly on the anniversary date of the lease;
or
(b) Monthly installments payable
at the beginning of each month.
Section 7. Adjustment of Rates and Charges.
(1) Prior to the beginning of each fiscal
year, the airport shall review the most current rates and charges to determine
if they are consistent with the rates and charges in effect at non state-owned
airports in the geographical region.
(2) The airport may adjust the rates and
charges in effect at the airport based upon the results of the review
established in subsection (1) of this section.
(3) The airport shall provide to a lessee not
less than thirty (30) days written notice of an adjustment in the rates and
charges.
(4) The airport manager
may waive ground support fees for:
(a) An
organization or person engaged in a non-profit aeronautical program or activity
that benefits a charitable organization or community; or
(b) A high volume fuel customer who purchases
a minimum of 300 gallons or more of aviation fuel.
Section 8. Aviation Fuel.
(1) The airport shall have the exclusive
right and control of the sale of aviation fuel sold at the airport.
(2) The selling price for aviation fuel sold
at the airport shall be based on:
(a) Weekly
wholesale price;
(b) Applicable
state and federal taxes; and
(c) A
survey of aviation fuel prices at similar airports in the geographical
region.
Section
9. Ground Support.
(1) Ground
support services offered by the airport shall include:
(a) Heating of aircraft engine;
(b) Power assistance to start
engine;
(c) Aircraft towing;
and
(d) Use of forklift.
(2) A fee for a ground support
service shall be consistent with the average rate or charge for identical or
similar services at airports in the geographical area.
Section 10. State Aircraft Usage Fees.
(1) The costs of operating the state aircraft
program for state officials and employees shall be recouped by the
CCAD.
(2) Aircraft costs shall be
calculated annually to compute an operating cost per flight hour.
(3) Calculations shall be based on a three
(3) to five (5) year average of:
(a) Fixed
costs;
(b) Periodic costs;
and
(c) Variable costs.
(4) The formulas established in
paragraphs (a) and (b) of this subsection shall be used to calculate the annual
cost of operation for each aircraft and to determine the hourly cost of
operation rate.
(a) (Annual Variable Costs) +
(Annual Fixed Costs) + (Annualized Periodic Cost) = Total Annual Cost of
Operation.
(b) (Total Annual Cost
of Operation) + (Annual Hourly Usage) = Total Hourly Cost of
Operation.
(5) Hourly
fees charged for usage of aircraft owned and operated by the Kentucky
Department of Aviation are available on the Capital City Airport Web site at
https://cca.ky.gov. or
https://transportation.ky.gov/Aviation/Pages/Aircraft-Fleet-Services.aspx.
(6) Insurance for state aircraft shall be
covered by an aviation liability insurance policy obtained and coordinated
through State Risk and Insurance Services.
Section 11. Measurement of Flight Time for
State Aircraft.
(1) The measurement of flight
time shall depend on the type of aircraft.
(2) Flight time for a helicopter shall be
measured with a Hobbs meter.
(3)
Flight time for an airplane shall be measured from its takeoff roll until the
airplane arrives at its destination and shall be computed in hours and
tenths.
Section 12.
Billing for Usage of State Aircraft.
(1) A
state agency using an aircraft shall be billed for the associated costs after
each flight.
(2) Billing shall be
based on the hourly cost of operation and the hours the aircraft was used
regardless of the number of passengers.
(3) If repositioning the aircraft to
accomplish the intended flight is necessary, a customer shall be charged for
the flight time required to reposition the aircraft.
(4) If it is necessary to fly without
passengers in order to accommodate a customer's schedule, that time shall also
be included in the charge.
(5) A
bill shall be paid by the user of a state aircraft within thirty (30) days of
service pursuant to KRS 45.453.
Section 13. Penalties.
(1) An interest penalty of five (5) percent
shall be assessed each thirty (30) day billing cycle that an account remains in
arrears.
(2) A delinquent account
shall be referred for legal action after ninety (90) days.
(3) A party aggrieved by the findings of the
airport may request an administrative hearing. The request shall be in writing
and postmarked within twenty (20) days of the notice.
(a) A request for a hearing shall detail the
grounds on which the hearing is requested.
(b) The hearing request shall be addressed to
the Transportation Cabinet, Department of Aviation, 200 Mero Street, Frankfort,
Kentucky 40622. The administrative hearing shall be conducted pursuant to KRS
Chapter 13B.
STATUTORY AUTHORITY: KRS 174.504