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Regular Council Meeting March 25, 2019 Page 4 15. Discuss and act on an airport management contract and a flight based operator (FB) agreement at Cox Field. Mr. Godwin explained that the FBO and management agreements were both currently with J.R. Aviation, and one had expired and the other was soon expiring. Mr. Godwin further explained that the city staff and airport board had been addressing these agreements over the last few months, had looked at different options, and were recommending that the two new proposed agreements be approved. Mr. Godwin said the recommendation was for a term of five years for each agreement, which included an increase of net revenues from fuel sales by approximately $6,000 annually. Council discussed the possibility of one combined agreement, making the agreement for one year and putting this out for bid. J.R. Aviation owner Jerry Richey said they had been at Cox Field for thirty-one years and had never had any issues. He also said he planned to retire in five years and one year did not do him a lot of good. Co -manager Brandi Ebbs explained that if another FBO wanted to come in, they could do so but would have to put in their own fuel tanks. Mayor Clifford and Council Member Knox favored a one-year term, allowing for the bidding process. Based on J.R. Aviation's tenure of thirty-one years, Council Member Pilgrim supported the five-year contract, as did Council Member Hughes and Council Member Portugal. A motion to award the contracts to J.R. Aviation was made by Council Member Hughes and seconded by Council Member Stone. Motion carried, 5 ayes — 2 nays, with Mayor Clifford and Council Member Knox casting the dissenting votes. 16. Discuss and act on amendments and enforcement of Hangar Leases at Cox Field. Mr. Godwin said the airport advisory board recommended changes to the standard city - owned hangar leases and updated lease rates for most hangars. He explained that the board wanted to remove persons without leases with the city, update all old leases to the new standard lease agreement, and require all leases with the city to be fully enforced or face revocation. Mr. Godwin said if there was no activity in a hangar for 180 days, the lease would be terminated. They also added in a Lamar County resident preference with the current lease holders being grandfathered. Mr. Godwin gave an example of current lease holders with old leases, such as those executed in 1994, would be required to execute a new lease and pay the rent pursuant to the new rates. Council Member Knox wanted to know if all of the hangars were owned by the city and Mr. Godwin said they were not. He said there were hangars that people built and leased ground space from the city for forty years. Council Member Knox inquired about people living in hangars. Mr. Godwin said he knew of one and many years ago a former staff member issued a permit allowing an apartment to be built in that privately owned hangar. Mayor Clifford inquired about the waiting list for city -owned hangars and Council Member Portugal said there were eighteen people on the waiting list. Mayor Clifford said he was opposed to limiting hangars to Lamar County residents only. Council Member Portugal said if the city did not open rentals up for everyone, it would look like Paris was closed for business. Council Member Pilgrim inquired about the effect on people who had offices in their hangars. Mr. Godwin said these amendments would not have an effect on the two currently at the airport, because they were running aeronautical type businesses.