HomeMy WebLinkAboutMINUTES - 05222012 - C.15RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Airports, or designee, to execute, on behalf of the County, a lease
amendment modifying the lease between the County, as Lessor, and Buchanan Airport Hangar Owners Association
Inc., as Tenant, that relates to the lease of approximately 3.3 acres located north of the Airport Offices. Pacheco Area
FISCAL IMPACT:
There is no negative impact on the General Fund. The lease amendment provides a $441.61 rent credit for 36 months
(for a total of $15,900) to compensate the tenant for the Airport’s use of the tenant’s power supply for the term of the
lease. The ground rent will continue to be increased annually by the CPI inflator.
BACKGROUND:
On December 16, 2008, the Board approved execution of a lease between the County and Buchanan Airport Hangar
Owners Association, Inc. (BAHOA), for the lease of approximately 3.3 acres of land on the northwest side of
Buchanan Field Airport. BAHOA operates aircraft storage hangars on the property.
The parties
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 05/22/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Gayle B. Uilkema, District II
Supervisor
Contact: Beth Lee (925) 646-5722
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: May 22, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: STACEY M. BOYD, Deputy
cc:
C.15
To:Board of Supervisors
From:Keith Freitas, Airports Director
Date:May 22, 2012
Contra
Costa
County
Subject:Approve and Authorize First Amendment to Lease with Buchanan Airport Hangar Owners Association, Inc. at
Buchanan Field Airport.
BACKGROUND: (CONT'D)
recently determined that the west access gate of Buchanan Field Airport and a nearby pole light are owned by the
County and are connected to BAHOA’s power supply. Since it is difficult and impractical to determine the exact
cost to the tenant of providing power to the County’s access gate and light, the parties have agreed that the value
of the power supplied by the tenant is $15,900 for the entire term of the Lease.
In order to compensate BAHOA for supplying the power to the County’s access gate and light during the term of
the lease, the lease is being amended to create a monthly rent credit equal to $441.67 per month for 36 months.
The total amount of the credit is approximately equal to the $15,900 estimated value of the power. The CPI
adjustment will continue to be applied to the actual rent in effect, including the actual rent in effect during the
monthly rent credit period. This solution is consistent with the policies identified in the Buchanan Field Airport
Master Plan and has been determined to be in compliance with the General Plan.
CONSEQUENCE OF NEGATIVE ACTION:
Not granting the modified terms could result in the County having to use funds from the Airport Enterprise Fund to
install a separate power meter and rewire the access gate and light to avoid using power supplied by BAHOA.
The cost of re-wiring could be much higher than $15,900.
CHILDREN'S IMPACT STATEMENT:
Not Applicable
ATTACHMENTS
1st Amendment to BAHOA Lease