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Agenda 12/12/2017 Item #16G312/12/2017 EXECUTIVE SUMMARY Recommendation to authorize the Chairman to execute the attached Resolution authorizing a temporary reduction or suspension of the hangar rent for hangars at the Marco Island Executive Airport partially or completely damaged by Hurricane Irma. OBJECTIVE: To temporarily adjust rental fees at the Marco Island Executive Airport (MKY) for several hangars damaged by Hurricane Irma until the hangars are restored to pre-storm condition. CONSIDERATIONS: Several aircraft hangars at MKY were damaged during Hurricane Irma, which occurred on September 10, 2017. The hangar buildings have been inspected by county officials and deemed structurally sufficient for continued occupancy. While aircraft can still be stored in these hangars, personal contents and aircraft are unsecure and exposed to sun and inclement weather. Accordingly, the affected tenants are not currently receiving the full benefit of their leaseholds as outlined in their individual hangar lease agreements. For the purposes of maintaining strong customer relations, Airport Authority staff, therefore, recommends reducing rent for the damaged hangars at MKY, characterized by receiving damage that substantially exposes the individual hangar units to the elements by twenty percent (20%), effective September 10, 2017, the date of the storm, until the hangars are restored to pre-storm condition. MKY Hangar B6, sustained damage that prevents occupancy of the hangar entirely. As such, staff recommends suspending this individual agreement until repairs are completed. Plans and specifications for these repairs are currently being developed by third -party consultants, which will be competitively solicited with the assistance of the Procurement Services Division and Grants Compliance Office within the coming months. FISCAL IMPACT: The estimated revenue loss of reducing/suspending hangar rents at MKY until the repairs are completed at various units is $1,299 per month, although the Collier County Risk Management Division has indicated that a business interruption claim may be eligible for reimbursement under the Airport Authority insurance policy. All eligible lost airport revenues resulting from Hurricane Irma will be pursued by Airport and Risk Management staff. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board action. - JAB RECOMMENDATION: To approve and authorize the Chairman to execute the attached Resolution authorizing the suspension and/or reduction of rent to damaged hangars at the Marco Island Executive Airport until the hangars are restored to pre-storm condition. Prepared by: Justin Lobb, Airports Manager, Airport Authority ATTACHMENT(S) 1. 2017 Resolution to Reduce Rents (PDF) 2. Hangar Tenant Diagram - MKY Hurricane JL (PDF) 12/12/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.G.3 Doc ID: 4206 Item Summary: Recommendation to authorize the Chair to execute the attached Resolution authorizing a temporary reduction or suspension of the hangar rent for hangars at the Marco Island Executive Airport partially or completely damaged by Hurricane Irma. Meeting Date: 12/12/2017 Prepared by: Title: Operations Coordinator – Airport Authority Name: Debra Brueggeman 11/13/2017 9:18 AM Submitted by: Title: Division Director - Operations Support – Growth Management Department Name: Gene Shue 11/13/2017 9:18 AM Approved By: Review: Airport Authority Justin Lobb Additional Reviewer Completed 11/13/2017 9:27 AM Growth Management Operations Support Allison Kearns Additional Reviewer Completed 11/13/2017 1:36 PM Growth Management Department Jeanne Marcella Level 1 Reviewer Completed 11/13/2017 2:03 PM Growth Management Department Gene Shue Additional Reviewer Completed 11/13/2017 2:15 PM Growth Management Department Thaddeus Cohen Department Head Review Completed 11/17/2017 4:52 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 11/20/2017 3:20 PM Growth Management Department James French Deputy Department Head Review Completed 11/27/2017 7:32 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/27/2017 9:51 AM County Attorney's Office Scott Teach Level 3 County Attorney's Office Review Completed 11/27/2017 10:35 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 11/28/2017 3:19 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 12/01/2017 2:37 PM Board of County Commissioners MaryJo Brock Meeting Pending 12/12/2017 9:00 AM RESOLUTION NO. 2017 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, ACTING AS THE COLLIER COUNTY AIRPORT AUTHORITY, AUTHORIZING ABATEMENT OF HANGAR RENTS FOR THOSE HANGARS DAMAGED BY HURRICANE IRMA AT THE MARCO ISLAND EXECUTIVE AIRPORT UNTIL THE HANGARS ARE RESTORED TO PRE -STORM CONDITION. WHEREAS, seven hangars at the Marco Island Executive Airport were damaged by Hurricane Irma on September 10th, 2017; and WHEREAS, tenants' aircraft and associated aviation equipment stored in these seven hangars are unsecure and exposed to sun and weather; and WHEREAS, one hanger, Hangar B6, has sustained damaged that prevents continued occupancy; and WHEREAS, staff recommends that rental charges for the seven hangars be reduced by twenty percent (20%) until the repairs are completed and the hangars restored to pre -storm condition and that rental charges for Hanger B6 be suspended until it is reconstructed to pre -storm condition. WHEREAS, the Board of County Commissioners, acting as the Collier County Airport Authority, hereby accepts the recommendation of Staff; and NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ACTING AS THE COLLIER COUNTY AIRPORT AUTHORITY, hereby approves suspending rent charges for Hangar B6 and reducing hangar rent twenty percent (20%) for the remaining seven (7) hangars damaged by Hurricane Irma at the Marco Island Executive Airport until repairs are completed and the hangars restored to pre -storm condition. THIS RESOLUTION ADOPTED after motion, second, and majority vote favoring same this the 12th day of December, 2017. ATTEST: BOARD OF COUNTY COMMISSIONERS OF DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA, IN ITS CAPACITY AS THE COLLIER COUNTY AIRPORT AUTHORITY ,Deputy Clerk By: PENNY TAYLOR CHAIRMAN Approved as to form and legality: Jernnifer A. Belpedio Assistant County Attorney Each Hangar 1,071 sq. ft. Affected Hangars A3 391.34 A4 391.34 A5 391.34 A6 391.34 A8 124.53 1689.89 20%337.978 B5 947.07 B8 270.86 1217.93 20%243.586 B6 717.44 100% Total 1299.004 42' No Electric Doors 33'Slightly smaller than B Door Height 12.5' Hangar Sizes: 2 @ 1,537.85 sq. ft. 3 @ 1,387.6 sq. ft. 1 @ 2,066 sq. ft. 52' 46' 46' 40' 40'40' 40'40' 50.5'50'6"46" Electric Doors Slightly larger than A Door Height: 16' $391.34 + $23.48 Tax = $414.82 $391.34 + $23.48 Tax = $414.82 $391.34 + $23.48 Tax = $414.82 8 3 302569 303048 302465 302371 302449 $537.88 + $32.27 Tax = $570.15$717.44 + $43.05 Tax = $760.49$717.44 + $43.05 Tax = $760.49 $270.86+$16.25 Tax=$287.11 1,387.6 sq. ft. 1,387.6 sq. ft.1,537.85 sq. ft. 1,537.85 sq. ft. 53 1 ST. JAMES $947.07 + $556.82 Tax = $1,003.89 VIKING $537.88 + $32.27 Tax = $570.15 $537.88 + $32.27 Tax = $570.15 302629302330 302489 302420 MARCO ISLAND EXECUTIVE AIRPORT - HANGAR B TENANTS LA GROTTARAVEN AIR CFTAR CCAA 6427 302628302810302439 MARCO ISLAND EXECUTIVE AIRPORT - HANGAR A TENANTS RAVEN AIR DAVID RANDALL FOGARTY ROGERS $124.53+$7.47 Tax = $132.00 5 1 302543302439 $391.34 + $23.48 Tax = $414.82 $391.34 + $23.48 Tax = $414.82 $391.34 + $23.48 Tax = $414.82 SILSBY HAVEMEIER 8 SWENSON CFTAR BETTEN - T CCAA 6427 2,066 sq. ft.1,387.6 sq. ft. 11/13/2017