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Department of Transportation recommending the Board approve and authorize the Chair to sign the Fixed Base Operators Lease Agreement 10-53024 with Stancil Enterprises Inc. and Sierra Investment Group Inc. for the Placerville Airport (4/5 vote required).
FUNDING: Placerville Airport Enterprise Fund - Fee Revenue.
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Fiscal Impact/Change to Net County Cost: The County will receive a negotiated monthly revenue in the total amount of $450.00 with annual increases based on the Consumer Price Index. There is no net cost to the County General Fund associated with this agenda item.
Background: Stancil Enterprises has been a long time tenant at Placerville Airport. They have operated one of the most successful used aircraft sales businesses in California. Their revenue source is vital to the Placerville Airport, and it generates sales tax dollars for the County. They desire to use hangar space H-23, for their business to store aircraft for sale. The front end business will continue under new management at the airport under the name SkyWagons. A new FBO Agreement will be presented to your Board for that operation.
Reason for Recommendation: The current FBO agreement with Stancil Enterprises expired July 10, 2010. A new agreement has been negotiated between Stancil Enterprises and the County Airports. The new agreement provides for the addition of a second company, owned by Joe and Doralee Stancil, called Sierra Investment Group. Sierra Investment Group owns the hangar which Stancil Enterprises will operate out of. The agreement shall run for five years and have two five year options.
Action to be taken following Board approval:
1. The Board Chair will execute the FBO Agreement in duplicate.
2. The Clerk of the Board to return one fully-executed original to DOT (Airports) for transmittal to Lessee.
Contact: James W. Ware, P.E.
Director of Transportation
Concurrences: County Counsel and Risk Management