REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  June  27, 2017
CATEGORY:  Consent - Public Works-24.

SUBJECT:

Fall River Mills Airport – Jones Aviation Lease Agreement

Supervisorial District No. :  3

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

Approve and authorize the Chairman to sign an agreement with Alan Jones, d.b.a. Jones Aviation, Inc. in the amount of $4,488 annually to lease a 20,400 square-foot area for a fixed base operator (FBO) aerial agricultural operation from the date of execution through August 1, 2042, with annual cost adjustments beginning in 2020 based on changes in the Consumer Price Index, provided the adjustment shall not exceed six percent in any one year.

SUMMARY

A lease agreement is proposed with Jones Aviation, Inc. for their aerial agricultural operation.

DISCUSSION

Jones Aviation intends to utilize the Fall River Mills airport for aerial agricultural operations. A lease agreement has been negotiated to provide dedicated space for their operations.  The agreement is for a 20,400 square-foot area.  Proposed compensation is $4,488 annually for 25 years.  Their proposed site is at the southeast end of the airport.  They have the option to build up to an 80-foot by 100-foot hangar.

The Board may lease real property to a third party per Policy 6-101.  The Board shall adopt a resolution with a property description, public notice, sealed bidding and oral bids.  Airport leases are not specifically addressed.  Government Code 25536 provides that the Board may lease County-owned airport property by four-fifths vote without compliance with the aforementioned notice and bidding procedures.

ALTERNATIVES

The Board may decline to approve the agreement or request changes to the terms and conditions of the lease. The proposed lease will provide additional income for airport operations.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the lease agreement as to form.  Risk Management has reviewed and approved the agreement. The recommendation has been reviewed by the County Administrative Office.

FINANCING

The lease agreement will provide $4,488 in annual revenue to the airport.  Annual cost adjustments are allowed after June 1, 2020, equal to the change in the Consumer Price Index, for the previous twelve-month period.  Annual adjustments shall not exceed six percent in any one year.  There is no General Fund impact.