Resolution 14-022 Approving a New Five Year Lease at the Homer Airport Terminal Between the City and Era Alaska

CITY OF HOMER

HOMER, ALASKA

                                                                                                                                  City Manager

RESOLUTION 14-022

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A NEW FIVE YEAR LEASE AT THE HOMER AIRPORT TERMINAL BETWEEN THE CITY OF HOMER AND ERA ALASKA, AND FINDING THAT IT IS IN THE PUBLIC INTEREST TO AWARD THE LEASE WITHOUT A COMPETITIVE BIDDING PROCESS.

               WHEREAS, The current airport terminal lease between the City and Era Alaska expired on December 31, 2013 and the parties have been operating under a holdover clause while a new lease is negotiated; and

               WHEREAS, Era Alaska has requested a new lease, lease negotiations have been successful, and both parties are ready to sign the new document; and

               WHEREAS, The term of the lease is five years (a DOT/PF limitation) and the annual payment is $59,948.76 to be paid in equal monthly installments of $4,995.73; and

               WHEREAS, Section 11.2 (F) of the adopted Lease Policies provides that the City Council may elect not to require a competitive bidding process for leases which have expired if it finds that it is in the best interest of the City to enter into a new lease agreement with the current lessee and it makes such a finding by resolution; and

               WHEREAS, The City Manager has evaluated the relevant facts to be considered in Section 11.2 (F) and recommends a new lease without competitive bidding due to Era’s prior lease history, its financial and administrative capacity to comply with the terms and conditions of the lease agreement, and the substantial economic benefits that accrue to the community from having Era doing business in the Homer Airport Terminal; and

               WHEREAS, The City Council reviewed the new lease agreement at its regular meeting on January 27, 2014.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council finds that it is in the public interest to award a new lease to Era Alaska without a competitive bidding process because of its prior lease history and the large and diverse economic benefits Era brings to the community.

               BE IT FURTHER RESOLVED that the Council hereby approves a new five year lease at the Homer Airport Terminal between the City and Era Alaska at a rate of $59,948.76 per year and authorizes the City Manager to execute the appropriate documents.

               PASSED AND ADOPTED by the Homer City Council this 27th day of January, 2014.

                                                                                                         CITY OF HOMER

                                                                                                                                                                                                                                                                                                            MARY E. WYTHE, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: Annual lease revenues $59,948.76.