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09 - Hangar Lease amendments & enforcementItem No. 9 TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: HANGAR LEASES AT COX FIELD DATE: February 22, 2019 BACKGROUND: The airport advisory board has been discussing a number of issues over its last several meetings in an effort to clean up and update leases and their management, and to maximize airport use for its intended purpose. At its regular meeting of February 21, the board made recommendations on several topics, including revised hangar lease documents, adjusted hangar rents, a hangar use policy, and procedures to enforce leases. STATUS OF ISSUE: In regards to the hangar lease revisions, the attached list identifies nine new or changed provisions, eight of which were approved unanimously by the board. Most are relatively minor cleanups, but I want to highlight a couple of them. Recommendation 4 states that if a hangar remains empty for 180 days then the lease is forfeited; in the past tenants have been able to do almost anything they wanted in that regard. Number 8 (approved 5-1) gives first choice of city -owned hangars to Lamar County residents, though the board agreed that any non- resident now renting a hangar or on the current wait list would be exempt from this provision. In regard to lease rates, we conducted a survey of other comparable general aviation airports and recommended increases for all but the four newly built ones that are already paying a current higher rent, and the hangar used by our FBO. The board unanimously approved the rates for the city -owned hangars (attached), which should make us comparable to others. Based on our long- standing wait list and the fact that we have some current tenants that do not use or rarely use their hangars for aeronautical purposes, we do not believe the higher market rate rents will have any negative effect on usage. A new hangar use policy reflects the existing requirements of the revised hangar leases but in a shorter, nineteen item list version that is easily referenced and also would be required to be posted in the airport terminal and in or on each city -owned hangar by the tenant. Three recommendations were approved in regards to hangar management and lease enforcement: • Notify individuals without valid leases to remove all property from hangars within ninety (90) days, or execute a new lease, if applicable. • Notify individuals in violation of requirements regarding aeronautical usage and activity that they are in default, and initiate the thirty -day (30) cure period, after which leases shall be terminated. • Require all tenants who have not executed and complied with the current standard city hangar lease (as amended on March 11) to execute a new lease within thirty (30) days, or be in default. BUDGET: Should generate a small amount of additional revenue. RECOMMENDATION: Approve recommended changes regarding city -owned hangar leases. REVISIONS TO STANDARD CITY -OWNED HANGAR LEASES 1. Replace annual CPI rate increase (section 2) with a flat percentage (e.g. 1.5%). 2. Delete references to weeds, high grass, and painting (section 5). 3. Indicate specific aircraft to be stored in hangars; provide that should tenant change aircraft, he/she must notify both city and airport manager of said change within thirty days (to be added to section 7). 4. Provide that should a hangar remain unused for a period of 180 days, that the lease shall be declared abandoned (to be added to section 7). 5. Require tenant to purchase lock from airport manager and keep said lock on hangar at all times so that manager can enter premises when required (to be added to section 14). 6. Clarify electric costs (section 19). 7. Require airport policies to be posted inside hangar at all times (to be added to section 24). 8. Provide that future tenants who maintain their primary residence in Lamar County shall have priority over those from outside the county. 9. Increase existing rates. REVISED CITY HANGAR RENTAL RATES Hangars Current rate New rate A 1, 2, 3, 4, 5, 6 108 150 B 2, 4, 6, 8, 10, 12 60 80 B 1, 3, 5, 7, 9, 11, 13 135 „n.°','i;;fl C 1, 2, 3, 4, 5, 6, 7 162 1.80 1 1 151.n;11.. 12, 3, 4, 5, 6, 7, 8, 9 135 155 110 181 181 J 1, 4 185 185 J 2, 3 195 195 HANGAR USE POLICY 1. Keep and maintain property and facilities in good condition and repair. 2. Comply with all fire, building, and property maintenance codes and zoning regulations now in force or that may be hereafter enacted with regard to the use of the airport premises. 3. Maintain roofs and walls free from leaks and damage. 4. Maintain property clear of clutter, junk, weeds and high grass. 5. Use the hangar only for the storage of airplanes and related aeronautical equipment and other items of personal property pertaining to that use and owned by the Lessee. 6. Identify, in writing hereon, Lessee -owned aircraft, and notify airport manager promptly of any change in aircraft stored. 7. Lessee has no authority to issue any sublease of this hangar, or permit any storage of any other aircraft by any other person or persons. 8. Lessee shall not cause or permit any use or activity that would create a hazardous condition for aircraft operating at the airport, or which is determined dangerous or hazardous to airport operations, including interference from such items as electrical or electronic equipment, creation of smoke or dust, or glaring or misleading lights. 9. No hangar shall be used as a residence or shall be used for residential purposes, 10. Lessee may only perform repair and maintenance that does not require a licensed airframe/aircraft power plant mechanic. 11. No commercial activity is authorized unless it is first approved by the City of Paris. 12. Lessee shall conduct its operation and maintain the leasehold in such a manner as to be free of environmental contamination, and shall neither store fuel nor defuel any aircraft inside any hangar, 13. Lessee shall not store inoperable aircraft for which there are no immediate rehabilitation or repair plans. 14. Lessee shall not leave hangar doors open after use. 15. Lessee shall keep hangar locked, using a lock provided by the city's airport manager. 16. Lessee shall not modify any part of the hangar without written permission of the City of Paris, including modifying existing electrical wiring or equipment in or about the hangar. 17. Lessee shall not attach any hoist or holding mechanism to any part of the hangar structure, or pass any such mechanism over the struts or braces therein. 18. Lessee shall not park or leave aircraft or motor vehicles on the taxiway or on the pavement adjacent to the hangar door in a manner that would unduly interfere with or obstruct access to any hangar, nor operate or permit the operation of motor vehicles on any unauthorized area of the ramp, hangar, or aircraft operation locations. 19. Lessee shall at no time use or permit the use of leased premises in a manner contrary to federal, state, or local laws, ordinances, rules, regulations, or TXDOT or FAA grant agreements.