MEMORANDUM 07-117

TO: Mayor Hornaday and City Council

THRU: Walt Wrede, City Manager

FROM: Sheri Hobbs, Personnel/Airport Terminal Manager

DATE: June 8, 2007

RE: Airport Terminal Concession Lease

Dale Haley with Bay Vending has held a concession lease for vending machines at the airport terminal since 1999. Dale is now selling his business to Jim Craddock with K Bay Vending. Mr. Craddock has requested a one year lease with one option to renew for an additional two years effective 7-1-07.

RECOMMENDATION: Approve the General Concession Sublease for Jim Craddock aka K Bay Vending and authorize the City Manager to sign.

FISCAL IMPACT: $1,980 annual revenue to airport fund.