Staff Report 4.4 Rescind Resolution 2022-043

Home Browse Search

airport consultant JUB stated that the 30 day model is also what they are aware of as standard practice. The 1 year T Hangar lease model requires that all 12 leases must be renewed, resigned and approved every year according to Resolution 2022-043. Rescinding this Resolution and reverting to 30-day leases will reduce administrative work. Once a 30 day lease is signed by the tenant and the airport, it is basically open ended as long as they stay in good standing with the County. The lease will state that each side can vacate or terminate by giving 30 days’ notice. This style lease will eliminate the need to draft and approve 12 new T Hangar leases every year. The current approved T Hangar lease also has a couple of provisions that are also not standard practice by other airports. The first is a Least Transfer/Assignment Fee of $525.00. Through my research, this is not practiced at other airports and is very unpopular. An administrative fee of $100 would probably be more appropriate to equal the time of the airport staff to work the lease transfers. Second, there is a 10% fee to tenants who pay monthly. This was to offset administrative costs but is again not a practice at other airports. I would recommend eliminating this as monthly payments do not cause the airport any undue administrative work. Under the old version of 30-day leases, this would be especially problematic. Tenants can pay annually or other lengths if desired, with monthly payments being the minimum requirement. I am working with the Prosecutor to draft a 30 day lease to bring before the BoCC for discussion and approval. We are utilizing the previous lease as well as the example 30- day lease sent to me by the Airport Director in Olympia. Once a draft is ready, I will work with the BoCC for approval. The previous 1-year leases on the T Hangars expired February 28th, 2023, so the sooner we secure new leases, the better for all parties involved. I have spoken with a few tenants I was able to get a hold of and they stated that they would work within lease requirements either way. To be clear, the current Resolution is not illegal, and if the BoCC would like it continued, it is not violating any laws. It is just not inline with other airports within the state and does develop more administrative work for airport staff. I would recommend rescinding Resolution 2022-043, and upon the approval of the BoCC, revert to the 30-day leasing model. The 1-year model was previously supported by the AAC, but after speaking with them again, they are in full support of the 30-day model. FISCAL IMPACTS: The fiscal impacts are listed below for the above projects (all are approximate): 1) Each public hearing requires a notice to be placed in the newspaper. Eliminating the need for extra public hearings concerning T Hangars will save the airport between $1200 to $2000 annually. It will also save the airport staff time, which is a monetary value as well.