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Date
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January 25, 2010
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Agenda
Item No. 47B Roll
Call No. 10-
Communication No. 10-029 Submitted by:
Craig Smith, Aviation Director |
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AGENDA
HEADING:
Public
Hearing to consider approval of the First Amendment to Commercial
Operator Lease and Agreement with Elliott Aviation of Des Moines, Inc.
SYNOPSIS:
Recommend
Council approval of the First Amendment to the Commercial Operating Agreement
with Elliott Aviation of Des Moines, Inc. (“Elliott”). This action is
contingent on the council approving
an assignment of this lease to Elliott from Mid-America Transportation Inc.
dba Mid-America Jet Center (“Mid-America”), also on today’s agenda.
FISCAL
IMPACT:
Amount: The
current operating agreement calls for payments of rent and a fuel flowage fee
to be remitted for every gallon of fuel sold to tenant and transient
aircraft. Rent
payments are to be adjusted annually beginning July
1, 2008, through July 1, 2013, at a rate to be determined by calculating the
change in the Consumer Price Index (CPI) plus 9.5%.
This condition remains in effect throughout the original term of
the Agreement, but for any option periods beyond June 30, 2017, the rent
payment will be adjusted only by the CPI change from the previous five-year
period. For the most recent fiscal year, Mid-America paid
rent of $69,235.58 and fuel flowage fees of $43,752.72.
Funding Source: Aviation
Department Enterprise Fund (EN002 AIR010100).
ADDITIONAL
INFORMATION:
In other action at today’s Council
meeting, the Council will consider an assignment of this lease from Mid-America
to Elliott. If that assignment is
approved, Elliott has asked to amend this lease to extend its term. The
agreement is currently scheduled to terminate on June 30, 2017.
Elliott has proposed that at the
expiration of the original term, they be given the right to exercise two
options (the First Option and the Second Option), each of which will extend the
term for a period of five years, to June 30, 2027. At the expiration of the Second Option
period, and every five years thereafter, Elliott may request an additional five
year extension of the term through June 30, 2042. The reason for the request is to provide that
this Agreement expire at the same time as Elliott’s current Fixed Based
Operator Lease and Agreement at DSM.
The Airport Board has recommended
that Council approve the amendment.
PREVIOUS
COUNCIL ACTION(S):
Date: January 11, 2010
Resolution Number: 10-034
Action: Set date of public hearing to approve the First Amendment to the Commercial
Operator Lease and Agreement with Elliott Aviation of Des Moines, Inc. Moved
by Hensley to set the public hearing for January 25th at 5:00 PM. Motion
Carried 7-0.
Date: June 18, 2007
Resolution Number: 07-1231
Action: Approve
Commercial Operator Lease and Agreement with Mid-America Transportation
Inc. dba Mid-America Jet Center. Moved by Hensley. Motion Carried 6-1.
Date: May 21, 2007
Resolution Number: 07-1013
Action: Approve Fixed Based Operator Lease and
Agreement with Elliott Aviation
of Des Moines, Inc. Moved by Hensley. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S):
Date: January 5, 2010
Resolution Number: A10-016
Action: The Airport Board recommended
that the City Council approve the First Amendment to the Commercial Operator Lease and Agreement with Elliott Aviation of
Des Moines, Inc. Moved by Erickson. Motion carried: 6-0.
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public
at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council
meeting. Citizens can also request to
receive meeting notices and agendas by email by calling the Clerk’s Office or
sending their request via email to cityclerk@dmgov.org.