Special Notice/Hearing: None__
Vote Required: 4/5
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Second Amendment to Lease/Concession Agreement with Rabbit Aviation Services, Inc. for the addition of Aircraft Transient Parking Ramp services at the San Carlos Airport, San Carlos, California, (Lease No. 5395)
RECOMMENDATIONS:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute the Second Amendment to Lease/Concession Agreement with Rabbit Aviation Services, Inc., for the addition of aircraft transient parking ramp services at the San Carlos Airport for the continued term through April 30, 2025; and
B) The Director of Public Works, or their designee, to accept or execute notices, options, consents, approvals, terminations, and documents in connection with the Lease/Concession Agreement.
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BACKGROUND:
On August 1, 2016, the County and Rabbit Aviation Services, Inc. (“Rabbit”) entered into a Lease/Concession Agreement authorizing Rabbit the occupancy and use a portion of the San Carlos Airport for the purpose of constructing a fuel storage facility on approximately 9,000 square feet (Premises). On July 21, 2020, the County and Rabbit entered into a First Amendment to Lease/Concession Agreement, expanding the Premises and authorizing Rabbit the use of 825 square feet of Office Space and adjusting the Base Rent.
The County and Rabbit now wish to further amend the Agreement by authorizing Rabbit to provide aircraft ground handling and transient parking ramp services for general aviation, government and military aircrafts (Ramp Services) at the San Carlos Airport.
DISCUSSION:
Rabbit will be offering Ramp Services at the San Carlos Airport for the continued duration of the Agreement. Ramp Services will continue to be available on a first come, first served basis, and managed by Rabbit during their business hours. The Airport will continue to manage Ramp Services after-hours. Aircraft Transient Ramp Services are currently provided by Rabbit as needed and billed to the Airport. Contracting with Rabbit to provide Ramp Services under his current agreement improves staffing efficiencies, enhances safety and customer service, and provides an estimated savings of approximately $8,000 per year. Instead of the Airport paying Rabbit to provide Ramp Services, Rabbit will directly bill the aircraft operator.
County Counsel has reviewed and approved the Agreement as to form. The Director of the Department of Public Works concurs in this recommendation.
FISCAL IMPACT:
This amendment to the Lease/Concession Agreement will provide a cost savings to the Airport Enterprise Fund estimated at $8,000 per year. There is no impact to the General Fund.