1998-01-26 Workshop and Regular Meeting of City Council

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REOUE0 FOR CITY COUNCIL AGENDA AM Agenda Date Requested: _ JanuarvA6,1998 Requested By: S. GiH —4t: Public Works Report Resolution XXX Ordinance Exhibits: Ordinance No.97-2205 Agreement and Lease for Fixed Base Operations SUMMARY & RECOMMENDATION The City of La Porte leases three (3) acres to D.E. Aviation, Inc. at the La Porte Municipal Airport. The lease expired on December 31, 1996. The City has negotiated a new lease with D.E. Aviation, decreasing the lease area to two (2) acres, effective January 1, 1997, and adding twenty-four (24) tie -downs, effective January 1, 1998. The proposed lease is for a period of twenty years, with two (2) five-year options. The proposed lease rental rate is $2,674.58 for the 1997 year, with the rental rate for 1998 at $2,763.44. The twenty-four tie -downs are leased at a rate of 30% of gross revenues from their rental or $12.00 per month per tie - down, whichever is greater, for an annual rental rate of $144 per tie -down, or $3,456.00. D. E. Aviation has tendered $500.00 for renewal fees, and $2,674.58 for rental fees for 1997. Rental for 1998 and subsequent years will be billed monthly, with future year rentals adjusted to the Consumer Price Index for All Urban Consumers, with the 1998 rate set at $6,219.44 for land and tie -down rental. The proposed lease includes a corporate guarantee to address concerns with the future removal of the underground fuel storage tank. Action Required by Council: Approve Ordinance No. 97-2205 approving the Agreement and Lease between the City of La Porte and D.E. Aviation. Availability of Funds: General Fund_ Water/Wastewater _ Capital Improvement General Revenue Sharing _ Other Account Number: N/A Funds Available: YES NO Approved for City Council Agenda (o� . tp , , l - rt-qs Robert T. Herrera Date City Manager