DATE: JUNE 18, 2024
DEPARTMENT: PUBLIC WORKS, AIRPORT DIVISION
FROM: DAVID JACOBS, PE, LS, DIRECTOR
BY: MATTHEW NELSON, AIRPORT MANAGER
TITLE: R&B HELICOPTERS, INC. LEASE AGREEMENT; AMENDMENT NO. 1 RECOMMENDED MOTION:
It is recommended that City Council approve and authorize the Mayor to enter into an Amendment to the Lease Agreement with R & B Helicopters, Inc. to grant an extension through June 30, 2025, with options for additional extensions on a month-to-month basis.
EXECUTIVE SUMMARY:
R & B Helicopters, Inc. (“R & B”), first entered into a lease agreement with the City in 1990 for use of space at the Salinas Municipal Airport, which lease is scheduled to end on June 30, 2024. R & B has indicated a desire to extend the lease for an additional one-year period commencing on July 1, 2024 (“Commencement Date”) and ending June 30, 2025 (“Expiration Date”). Thereafter, the City would grant to R & B an opportunity to further extend the term of the Lease after the Expiration Date on a month-to-month basis (“Extended Term”) at a rental rate determined by the City.
BACKGROUND:
R & B and the City first entered into a Salinas Municipal Airport Lease which commenced on July 1, 2009, (“Commencement Date”) and ending on June 30, 2019, with an option to extend this Lease for a period of five (5) years. R & B Helicopters, Inc. exercised the option with an end date of June 30, 2024. R & B Helicopters, Inc and The City wish to extend the Term of the Lease for an additional one-year-period commencing on July 1, 2024, and ending June 30, 2025, and thereafter extend the term of the Expiration Date on a month-month basis. All other terms and conditions of the lease would remain in effect as originally written in the lease.
CEQA/NEPA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project and, therefore, exempt as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
This action supports the City Council’s Goals of Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The process of administering these projects involve the following departments: Public Works, Finance, and Legal. Public Works Department oversees the development of the project’s plans, specifications, and estimates. The Finance Department administers the proper appropriation of funds. The Legal Department reviews pertinent documents/contracts to ensure the City is in compliance with applicable laws and regulations.
FISCAL AND SUSTAINABILITY IMPACT:
There is no impact to the City’s General Fund.
ATTACHMENTS:
R & B Helicopters, Inc. Original Lease
R & B Helicopters, Inc. Lease Extension
R & B Helicopters, Inc. Resolution
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