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Home My WebLink About112-10 RESOLUTIONRESOLUTION NO. 112-10 A RESOLUTION AUTHORIZING AND APPROVING AN AIRPORT USE AND LEASE AGREEMENT FOR FIXED BASE OPERATIONS WITH WOOLSEY AVIATION, INC. D/B/A MILLION AIR OF FAYETTEVILLE IN THE AMOUNT OF $29,560.20 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes and approves an Airport Use and Lease Agreement for Fixed Base Operations with Woolsey Aviation, Inc. d/b/a Million Air of Fayetteville in the amount of $29,560.20. A copy of the Agreement is attached to this Resolution as Exhibit "A." PASSED and APPROVED this 6th day of July, 2010. APPROVED: ATTEST: By: By: VOIt • 6)"4..te.d SONDRA E. SMITH, City Clerk/Treasurer �% °°C Y 0F ° cOi a \ ° ° LO ®-a FAYETTEVILLE: 9s kA NSP•J��e� /4e/�G Te 14 C),(? RECEIVED JUN 1 0 2010 AIRPORT AIRPORT USE AND LEASE AGREEMENT for FIXED BASE OPERATIONS TEN YEAR RENEWAL OF ORIGINAL USE AND LEASE AGREEMENT By and Between THE CITY OF FAYETTEVILLE, ARKANSAS and WOOLSEY AVIATION, INC. d/b/a MILLION AIR OF FAYETTEVILLE Effective Date — August 1, 2010 AIRPORT USE AND LEASE AGREEMENT for FIXED BASE OPERATIONS TEN YEAR RENEWAL OF ORIGINAL USE AND LEASE AGREEMENT By and Between THE CITY OF FAYETTEVILLE, ARKANSAS and WOOLSEY AVIATION, INC. d/b/a MILLION AIR OF FAYETTEVILLE Effective Date — August 1, 2010 WHEREAS, the City of Fayetteville and Woolsey Aviation, Inc. entered into an Airport Use and Lease Agreement for Fuel and Line Services Fixed Base Operations at the Fayetteville Municipal (now Executive) Airport with Woolsey Aviation, Inc. d/b/a/ Million Air of Fayetteville on or about August 1, 2005; and WHEREAS, paragraph 4 of said agreement gave both parties the right to a five year renewal option upon successful negotiation and mutual agreement of all rental terms prior to May 3, 2010; and WHEREAS, both parties have negotiated and reached agreement to these rental terms and desire the original Lease Agreement be renewed and all other terms and conditions of that Agreement remain in full force and effect with the specific exceptions as expressly noted below. NOW, THEREFORE, in consideration of the foregoing and all of the mutual pledges, consideration and covenants within this Renewal and within the original Airport Use and Lease Agreement of August 1, 2005, the City of Fayetteville and Woolsey Aviation, Inc. promise, pledge and covenant to enter into a ten (10) year renewal of the lease. Lease rates and rate increases will be reevaluated 90 days prior to the end of the first five years of the renewal period. Exceptions to the current agreement are as follows: 1. The Year 6 and 7 (September 1, 2010 through August 31, 2012) combined monthly rental for the Terminal, Fixed Base Operations Hangar and Ramp shall be $5,912.04 pursuant to the terms of paragraph 5.8 Rental Payment Increases. Rental increases for years 8, thru 15 shall be increased pursuant to the terms of paragraph 5.8 except as may be changed 90 days prior to the end of year five (5) of the renewal term. 2. Paragraph 2.1 Delete in its entirety and replace with the following: "The Premises. described as 4030.55 Square Feet, plus or minus, of the Airport Terminal Building plus non- exclusive use of areas in common with other tenants to include imaging and signage as approved by the Airport. Includes additional space (360 SF) added at renewal August 1, 2010 for use as needed to support the Air National Guard Training programs at no additional cost to the contract. Lessee shall provide executed documentation of such training agreement. If no such training agreement is presented by August 1, 2010, this space may be leased to another tenant. Attachment 1 to this renewal document contains visual description of the demised Airport Terminal premises. 3. Paragraph 5.5 FBO Equipment Rent shall be and hereby is deleted as all provisions therein have already been satisfied. 4. Paragraph 5.9 Payment of Revenues Collected for the Airport. Since Landing Fees are no longer required by the Fayetteville Code, paragraph 5.9 is amended to remove all references to "Landing Fees". The remainder of paragraph 5.9 remains in full force and effect. 5. Paragraph 7.15 Pricing. After the last sentence in this paragraph a final sentence shall be added as follows: "Lease Attachment Number Two (attached) to the Lease Agreement between the City and Flying Investments, LLC including an In -To -Plane fee of $.25 per gallon delivered into Flying Investments' planes shall be honored." 6. Paragraph 7.16 Self Service Fueling Station. The second to the last sentence shall be deleted and be replaced as follows: "It is also agreed that the airport shall pay for the fuel at a cost plus delivery fee not to exceed $.25 per gallon." 7. Paragraph 24 Right to Terminate Not Exclusive. The next to the last sentence shall be deleted and be replaced as follows: "All things equal, both parties have the right to give notice of termination of this agreement for the good of the parties with a minimum of 120 days notice to terminate." 8. Woolsey Aviation, Inc. and the City of Fayetteville hereby agree to renew the Airport Use and Lease Agreement entered into between the parties on or about August 1, 2005, for a term of ten (10) years (August 1, 2010 through July 31, 2020) on the exact terms and conditions as specified in the original lease agreement except as modified in paragraphs 1 through 6 above. IN AGREEMENT with all the terms, promises, and conditions set out above, the parties sign their names below: WOOLSEY AVIATION, INC. CITY I FAYET VILLE By: By� /,...k4 R G ' WOOLSEY I G NELD J 1 AN, Mayor C&/Psi ;. Title Title Date Signed: (_0.- q - By: ATTEST: SONDRA E. SMITH, City Clerk/Treasurer Date Signed: *rA,+rw1T ! �ir�rT�Gls s Lrus� Ayrze,Ne, AeepLIT /, zo/o PILOT LOUNGE NEW WEATHER INFO DESK 9 NEW BEVERAGE SERVICE STATION ■ s�. f■<•R■1.116 ENNEMEMEME ■•••■1111■ START OF NEW CARPET C MECHANICAL 15" TALL EA. CARPETED RISER 2 LAYERS 3/4" PLY. OVER / JOISTS SPACED 16" O.C. / OFFICE MEDIA ROOM 7112" STEP UP 18'-2" NEW MILLWO START OF NEW CARPET NEW CARPET )OR TILE JEP. LAM ISD ENTIRE H,BI,ACK :T APPROVED) EME MEE 11■ ■1■ MEE Iii NEE ■a1 ■11 ■i ■■1 1■■ MEE 1if u� MEM -w- PHASE IA OFFICE JANITOR aa.. NUt 543 gLi hJi SGI aii "i4: hip ILA IIIi111111I1111111111111111111111111 u111■■■1■111■111111■1■1■■■■1■■■11■■1 WOMEN t 104 (2092.055 WINgfall b 195P . 854.55 1-051— 300.55' /40 02010 3405: 1-b 40.30.55 UPGRADE FINISHES INCLUDING COUNTERTOPS AND TOILET STALLS. PATCH;. AND REPAIR ALL ADJACENT`;' FINISHES_ Ray M. Boudreaux Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 7/6/2010 City Council Meeting Date Agenda Items Only Aviation Division Action Required: Transportation Department Action Required: Approval of Lease renewal for Fixed Based Operations at Drake Field. Contact: Roger Woolsey, CEO / President, Woolsey Aviation, 8501 Telephone Rd, Houston, TX 77061, 713-640-4000. 2010 REVENUE $ 29,560.20 Cost of this request 5550.0955.4454.00 Account Number NA Project Number Budgeted Item X 700,600.00 Category / Project Budget Chgs-Sery Program Category / Project Name Airport Revenue Funds Used to Date Program / Project Category Name 700,600.00 Remaining Balance Budget Adjustment Attached orney Airport Fund Name `„41.,/9 Previous Ordinance or Resolution # 117-05 Date Original Contract Date: 6/21/2005 C410 Original Contract Number: Date Finance and Internal Services Director Chief of Sta or Date Date Received in City Clerk's 8iiee1 0-1 0 PO4 :22 R CVD Received in Mayor's Office Comments: Revised January 15, 2009 1371evile THE CITY OF FAYETTEVILLE, ARKANSAS AVIATION DIVISION 4500 S School Ave, Ste F Fayetteville, AR 72701 P (479) 718-7642 www.accessfayetteville-org CITY COUNCIL MEMO To: Thru: Thru: From: Date: Mayor Jordan and City Council Chief of Staff, Don Marr Transportation Director, Terry Gulley Ray M. Boudreaux, Aviation D June 10, 2010 Subject: Approve Million Air Lease renewal and Signature of the Mayor on Renewal. PROPOSAL: In accordance with the Lease agreement between the City and Million Air, negotiations were entered into in February 2010 to renew the agreement effective August 1, 2010. The results of those negotiations are attached for execution by the Mayor. The rent increases by $212.04 computed based on the change in the CPI since the last increase. The new rent is effective for the next two years. They asked for a 10 year renewal and the Airport Board agreed to the new ten year term with lease amounts the only negotiable item at the five year mark of the new term. Million Air has agreed more specifically to honor the terms of the fuel storage and into plane fee of Flying Investments. A small addition to their lease space in the Terminal was added to accommodate their new Military Training agreement and fuel sales contract. RECOMMENDATION: Approve renewal and submit for signature of the Mayor. BUDGET IMPACT: Monthly rent has increased by $212.04. Attachments: Staff Review Lease Renewal (2 copies) Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 RESOLUTION NO. A RESOLUTION AUTHORIZING AND APPROVING AN AIRPORT USE AND LEASE AGREEMENT FOR FIXED BASE OPERATIONS WITH WOOLSEY AVIATION, INC. D/B/A MILLION AIR OF FAYETTEVILLE IN THE AMOUNT OF $29,560.20 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes and approves an Airport Use and Lease Agreement for Fixed Base Operations with Woolsey Aviation, Inc. d/b/a Million Air of Fayetteville in the amount of $29,560.20. A copy of the Agreement is attached to this Resolution as Exhibit "A." PASSED and APPROVED this 6th day of July, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer