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information pertinent to the remainder of the discussion is contained in Exhibit 1 for future reference. II. Current Policy. The current policy of the City with regard to long term hangar leases is set out in Resolution No. 96-011, a copy of which is attached hereto as Exhibit 2. As stated in the lease, the minimum primary term was established at twenty-five (25) years, with two additional ten (10) year options, or a total of forty-five (45) years. Rental would be paid during the first ten (10) year option at an amount stated as the "fixed rental", and the second ten (10) year option would likewise require some rental at the amount of $.06 per square foot (it is unclear whether this amount would be paid annually or monthly) or something established as the "fair market value" at the time the option is exercised. There is no language in the policy that describes how either fair market value or the fixed rental is to be established. The policy establishes a maximum primary term of forty-five (45) years, with a possibility of two additional fifteen (15) year options, or a total potential term of seventy-five (75) years. Again, payment of nominal rent would be due during the two option periods, again based on fixed rentals and fair market value. Finally the policy contained some rather undefined standards stating that the size of the hangar, type and number of aircraft, use of both the hangar and the aircraft, and the estimated income to the airport operation (presumably as a result of having the hangar there) would be taken into account when determining the lease terms. The current policy is vague on a number of the pertinent issues that needed to be considered in determining the term of a lease. Indeed, a review of Exhibit 1 fails to show a discernable consistent trend with regard to the length of the term of the lease as compared to say the size of the hangar, although there is a general trend that the larger the hangar, the longer the term. Likewise, there is no consistency in the amount of payments set out in the leases for the future options. It should also be pointed out that the option payments provided for in the leases do not provide for escalation based on any sort of consumer price index of the option payments. That is, presumably an optional payment of $100 per month beginning in 2019 will not represent near the amount of money that $100 per month represents in the year 2001. Current policy is there for Council's review and further deliberation. III. Exhibit 3 to the Agenda Information Sheet contains the results of the Legal Department's survey of other cities. You will note that information is included in the survey for some seventeen (17) municipal or municipal related airports. Inquiries were made regarding whether or not private hangars were available; whether or not ground leases were required incident to construction of the private hangars; whether or not ground lease rent was paid and the amount of that rent; the term of the primary lease; whether or not the lessee was responsible for taxes, if any were due; whether or not ownership of the hangar reverted to the City and when; the kind of insurance required and information related to the existence of an airport advisory board. Without attempting to submit this information to any kind of detailed and systematic analysis, I think certain trends can be identified. First of all, all of the responding airports had private hangars available. Secondly, all the responding airports -2-