HomeMy Public PortalAboutAB 20-283 Hangar 105 - SawtoothMcCALL CITY COUNCIL 216 East Park Street
AGENDA BILL McCall, Idaho 83638
Number AB 20-283
Meeting Date October 8, 2020
AGENDA ITEM INFORMATION
SUBJECT:
Approval of the new Fixed Base Operator (FBO) lease, additional leased areas FBO 3/C, D and E, and existing lease termination(s) with Sawtooth Flying Services, Inc.
Department Approvals
Initials
Originator
or
Supporter
Mayor / Council
City Manager
Clerk
Treasurer
Community Development
Police Department
Public Works
Golf Course
COST IMPACT:
$34.70 in decreased lease revenues
$0.08/gal increased revenues in new fuel sales
Parks and Recreation
FUNDING SOURCE:
n/a
Airport
/
Library
TIMELINE:
Information Systems
Grant Coordinator
SUMMARY STATEMENT: Sawtooth Flying Service requests additional leased space in order to provide retail self-serve fuel sales. The newly leased areas will enable Sawtooth to comply
with the Airport Minimum Standards for fuel sales, which requires ½ acre (21,780 square feet). Sawtooth has also requested the FBO 3 lease fees be decreased from the current $0.429
per sf annually to the rate of $0.30 as outlined in Resolution 17-16 “Airport Fees”.
Last year, Sawtooth installed a fuel tank and metering system for fueling Sawtooth operated aircraft. Sawtooth intends to sell 100LL avgas (small piston aircraft fuel), but not Jet
A (larger, jet powered aircraft fuel to the general public on a self-serve basis. Currently, Sawtooth leases 13,247 sf of airport property, and needs to lease another 8,533 sf to meet
the ½ acre requirement. New Areas FBO3 C/D/E combined total 9,110 sf of property, for a total of 22,357 sf – 577 sf more than the minimum.
The rate for the new leased area is $0.14 per sf. The Federal Aviation Administration’s Grant Assurances require that the airport treat all of the airport tenants as equally as possible.
This rate is the current rate that McCall Aviation is paying and will ensure the airport complies with Grant Assurances. The new lease, attached, combines the 5 separate leased areas
into one document. Revenues from Sawtooth for leased property will decrease from FY20’s $4,774.35 to FY21’s $4,739.65 – the slight decrease revenues are the result of the lower rate
on the FBO 3 parcel, which is almost offset by the additional land lease revenues.
Also attached, is a Lease Termination Document to cancel Leases between Sawtooth Flying Services, Inc., as Lessee, and City of McCall as Lessor, for Hangar 105 at McCall Municipal Airport,
1) dated March 1st, 1994, and 2) dated June 1, 2019, upon execution of the new lease. The Airport Advisory Committee recommends the approval of the new lease - and authorizing Sawtooth
to perform retail fuel sales.
The City Attorney has approved the new lease, and the lease terminations.
RECOMMENDED ACTION: Approval of the new Fixed Base Operator (FBO) lease, including additional lease areas FBO 3/C, D and E, existing lease terminations with Sawtooth Flying Services,
Inc., and authorize the Mayor to sign all necessary documents.
RECORD OF COUNCIL ACTION
MEETING DATE
ACTION
July 25, 2019
AB 19-160 Approved lease of other additional property – FBO 3B and FBO 3C
February 11, 2010
AB 10-35 Lease agreement with Sawtooth Flying Service, Inc. – FBO 3
Sept. 14, 2017
AB 17-198 and Resolution 17-16 Airport Fees