HomeMy Public PortalAboutAB 06-185 Hangar Deposit to LeaseMcCALL CITY COUNCIL
AGENDA BILL
Number
Meeting Date September 28, 2006
AB 06-185
216 East Park Street
McCall, ID 83638
AGENDA ITEM INFORMATION
SUBJECT:
Procedure for application of hangar deposits to
lease payments
Approvals: Department/
Committee/Individual
Initials
Remarks
(Originator/
support)
Mayor /Council
City Manager
Community Development
Treasurer
Clerk
Police Department
Public Works
Golf Operations
Parks & Recreation
COST IMPACT: Approximately $4,865.60 in FY 2008
Airport
originator
FUNDING SOURCE: Airport — loss of revenue
Library
City Attorney
TIMELINE: Decision by November 2006
Grant Coordinator
Other:
SUMMARY STATEMENT:
The City's hangar waiting policy is that the $500 deposit, required on each application, will be applied
toward the lease payment to the City when a property parcel is offered and a lease is drafted. All of the
hangars being built by Hangar Solutions (east hangar project) are being purchased by people currently on
the hangar waiting list. Hangar Solutions is expecting to have all the hangars available on or by the 15th of
November. The hangar lease billing rate (for FY 2007) is $0.23 per square foot. All of these hangars will
be 42' by 36' for 1512 square feet. The FY 2007 lease total will be (1512' x $0.23) $347.76. Since the 15th
of November is a month and a half into the next billing cycle, their first year's lease will be $304.29.
Subtracted from their $500 they would have $195.71 applied towards their bill for FY 2008 for a remainder
of $152.05 (this computation does not take into account the CPI adjustment for the FY 2008 billing period).
During the September 7th AAC meeting, Hangar Solutions requested that the $500 deposit be used to
cover the total duration to the end of the FY 2008 billing period (a loss to the city of $152.05 per unit, or, 32
x $152.05, a total of $4,865.60). Hangar Solutions felt that the new owners should have some
compensation since they were each paying an additional $50,000 (over the cost of the basic hangar) to
cover the cost of site preparation and taxiway construction. This went to vote before the AAC which
approved it 4 to 1.
The City Staff does not recommend that the City Council approve the above AAC recommendation. FAA
Order 5190.6A Airport Compliance Requirements "Exclusive Rights Prohibition" states that any
compensation made to one party must be made to all. Staff recommends following the standard procedure
for the lease deposit, in order to remain in compliance with FAA requirements.
RECOMMENDED ACTION:
Follow the standard procedure to apply the hangar deposit to the required lease payments on a pro-
rated basis.
RECORD OF COUNCIL ACTION
Meeting Date
ACTION