REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  April  24, 2018
CATEGORY:  Consent - Public Works-8.

SUBJECT:

Fall River Mills Airport – 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

Take the following actions: (1) Approve and authorize the Chairman to sign a revenue lease and service agreement with Macy’s Flying Service, Inc. in the amount of $2,200 annually to lease a 10,000 square-foot area at the Fall River Mills Airport for a fixed base operator (FBO) aerial agricultural operation for the period from the date of execution through August 1, 2041, 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; and (2) find that the proposed action is exempt from environmental review under the California Environmental Quality Act (CEQA) based on the following categorical exemptions: CEQA Guidelines 15301 (Existing Facilities), 15303 (New Construction or Conversion of Small Structures), and 15311 (Accessory Structures); there are no unusual circumstances under CEQA Guideline 15300.2(c); and each exemption stands as a separate and independent basis for determining that the proposed action is not subject to CEQA.

SUMMARY

A revenue lease and service agreement is proposed with Macy’s Flying Service, Inc. for their aerial agricultural operation.

DISCUSSION

Macy’s Flying Service, Inc. intends to utilize the Fall River Mills airport for aerial agricultural operations. A revenue lease and service agreement has been negotiated to provide dedicated space for their operations.  The agreement is for a 10,000 square-foot area.  Proposed compensation is $2,200 annually for the period from the date of execution through August 1, 2041.  Their proposed site is towards the southeast end of the airport.

The Board may lease real property to a third party per Administrative Policy 6-101, Shasta County Contracts Manual. 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 revenue lease will provide additional income for airport operations.

OTHER AGENCY INVOLVEMENT

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

FINANCING

The revenue lease and service agreement will provide $2,200 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.