HomeMy WebLinkAboutStaff Report 4.4 Rescind Resolution 2022-043KITTITAS COUNTY
AIRPORT DEPARTMENT
STUDY SESSION DATE: April 4th, 2023
TOPIC: Rescind Resolution 2022-043
ACTION REQUESTED: Rescind Resolution 2022-043 designating T Hangar leases
at 1 year in length.
LEAD STAFF:
David D. Ohl
RECOMMENDATION:
Rescind Resolution 2022-043
BRIEFING SUMMARY:
- Resolution 2022-043 designated that all County owned T Hangar leases be 1 year
in length. The original intent from the previous Airport Director was to reduce
administrative work.
- The current 1 year lease model is not in line with standard practices at other
airports within the state of Washington. All other airports noted utilize the 30-day
leasing model for T Hangars.
- The current Resolution for the leasing of T Hangars produces more administrative
work than what was previously accomplished.
- Rescinding Resolution 2022-043 will revert T Hangar leases to their previous
model of 30-day terms.
BACKGROUND:
Resolution 2022-043 was pursued by the previous Airport Director to create less
administrative work within the airport office. In its current form it sets all T Hangar
leases at 1 year in length. Through some research and discussion, the current Airport
Director has found this to be the opposite. The current Resolution produces more
administrative actions from airport staff.
DISCUSSION:
Rescinding the current Resolution would allow for T Hangar leases to revert back to 30
day leases. This is inline with standards and practices at other airports within Washington
State. After contacting airports in Olympia, Bremerton and Walla Walla and speaking
with their Airport Managers/Directors, it was found they all utilize the 30 day leasing
model. Furthermore, the Director of the Olympia Airport, Warren Hendrickson, who has
30 years of airport experience within Washington State, stated that to his knowledge he
has not seen or heard of the 1 year T Hangar leasing model at any other airport. Also, our
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.
ATTACHMENTS:
Attachment 1: Resolution 2022-043
Attachment 2: Resolution to rescind Resolution 2022-043