FY2016 CCDOA Financial Report as of 6302016.pdf - page 127

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
114
Unable to resolve their differences, the parties agreed to mediate Bombardier’s claims. A
mediation session was held on December 5, 2012. At the mediation session, the parties
reached a tentative agreement which had to be approved or rejected by the Board and by
Bombardier on or before January 25, 2013. Pursuant to the tentative agreement, the parties
agreed that the County would reimburse Bombardier for certain substantiated expenses and
that the parties would submit the sole issue of the lost profits that Bombardier would have
received had the contract continued in effect through the contract’s termination date of
June 2013 to binding arbitration conducted by a former judge acting as arbitrator. On January
11, 2016, the arbitrator issued an Arbitration Decision and Award for Bombardier in the amount
of $1.6 million, concluding the matter. The Department expensed the cost in FY 2016.
There are a number of civil actions alleging personal injury and property damage pending
against the Department. Pursuant to the Department's liability insurance coverage, the
Department has retained counsel to defend these actions. Any monetary exposure above the
deductible in those cases of which the Department is aware would be covered by insurance.
14.) RENTALS AND OPERATING LEASES
The Department derives a substantial portion of its revenue from fees and charges to air
carriers and concessionaires. Charges to air carriers are generated from terminal building
rentals, gate use fees, and landing fees in accordance with the Lease or with the provisions of
the applicable County ordinance. The Department leases land, buildings, and terminal space
to various tenants and concessionaires under operating agreements that expire at various
times through 2099. Under the terms of these agreements, concession fees are based
principally either on a percentage of the concessionaires’ gross sales or a stated minimum
annual guarantee, whichever is greater, or on other land and building rents that are based on
square footage rental rates. The Department received $245.2 million and $230.7 million in the
years ended June 30, 2016, and 2015, respectively, for contingent rental payments in excess of
the stated annual minimum guarantees.
The following is a schedule of minimum future rental income on non-cancelable operating
leases as of June 30, 2016.
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