COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

January 23, 2003

BOARD MEETING DATE:

February 4, 2003

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

Second Amendment To Lease Agreement with Golden Gate Helicopters, LLC dba Diamond Aviation for Office Space at the Mary Griffin Ramseur Terminal Building at the San Carlos Airport, Lease No. 5223 (4/5th vote required)

Recommendation

Adopt a resolution authorizing the President of the Board of Supervisors to execute a Second Amendment To Lease Agreement with Diamond Aviation to increase the rentable area occupied and increase the monthly rent at the Mary Griffin Ramseur Terminal Building at the San Carlos Airport.

Background

Diamond Aviation has leased office space in the Terminal Building at the San Carlos Airport since 1995. Diamond Aviation provides flight training, aircraft sales and aircraft rentals. These activities are allowed under the terms of a separate Concession Agreement.

Approximately 380 square feet of office space is currently vacant in the Terminal Building. The owner of Diamond Aviation proposes to rent this space for use as an air charter service.

Discussion

The Second Amendment to Lease Agreement increases the rentable square feet occupied from 1,568 square feet to 1,948 square feet with a corresponding increase in monthly rent from $1,600.54 to $2,170.54 per month. The amendment is contingent upon Diamond Aviation obtaining an air taxi certificate from the Federal Aviation Administration. The tenant under the original lease was identified as Golden Gate Helicopters, LLC, dba Diamond Aviation. The concession Agreement has since identified Golden Gate Helicopters, LLC as the Operator. This Second Amendment, in order to make the lease and concession agreements consistent, acknowledges Golden Gate Helicopters, LLC dba Diamond Aviation as the tenant. The corresponding amendment to the Concession
The Honorable Board of Supervisors

December 23, 2002

Page Two

Agreement is before the Board for simultaneous consideration.

The Director of Public Works concurs in this recommendation. County Counsel has reviewed and approved the amendment as to form.

Vision Alignment

The Second Amendment To Lease Concession keeps the commitment of responsive, effective and collaborative government and goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or gain. The agreement contributes to this commitment and goal by providing an additional service to the public at the Airport while increasing County revenue.

Fiscal Impact

Monthly rent will continue to be deposited into the Airport Enterprise Fund.