Title
A Resolution to Renew 5-Year Airport Franchise and License Agreement with Lightning Aviation LLC, Operating as Fixed Base Operator (FBO) at the Foley Municipal Airport
Summary
Description of Topic: (who, what, where, when, why and how much)
Renewal of 5 year agreement with Lightning Aviation to continue to operate as FBO. The terms of the lease agreement remain significantly the same with the exception of an increase in the monthly rent rate over a three year period so that at the start of the third year, rent shall be $1,000. Rent for last 5-year agreement was $500/month. Proposed rent for year 1 is $650/month, year 2 is $825/month, year 3 is $1,000 per month. It is also recommended that the lease period be approximately 5 year, 2 months for this agreement in order for the expiration to coincide with fiscal year end and future renewals will be on a fiscal year schedule.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
WHEREAS, Resolution 16-1157-RES approved entering into a five year agreement with Lightning Aviation LLC and this agreement will expire on July 19, 2021, and,
WHEREAS, Lightning Aviation LLC has performed an exceptional job as the airport's Fixed Base Operator, and,
WHEREAS, it is the Airport Manager's recommendation to renew this lease for an additional five year, two month period so that the lease expiration date will coincide with the start of our fiscal year cycle on September 30, 2026, and,
WHEREAS, previous lease rate was $500 per month. The proposed lease rate for this agreement will increase incrementally over the next three years. The proposed rate for year one is $650 per month, year two is $825 per month and year three will be $1,000 per month.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves entering into an addition 5 year Airport Franchise and License Agreement with Lightning Aviation LLC, at a negotiated rate that will increase over a three year period so that at year three, the monthly lease rate will be $1,000 per month under Account No. 01-4758 plus additional revenue that will be obtained from a $0.03 per gallon fuel flowage fee for aviation fuel purchased by Lightning Aviation LLC.
SECTION 2: Authorizes the Mayor to sign this agreement on the City's behalf.
SECTION 3 This Resolution shall become effective immediately upon its adoption as required by law.