AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 11/7/2018
TO: Honorable Mayor and City Council Members
FROM: Maintenance Services
SUBJECT:
Title
City Council consideration of a Sublease Agreement between Corona Executive Hangars and California Power Systems at the Corona Municipal Airport.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Approve a Sublease Agreement between Corona Executive Hangars and California Power Systems.
2. Recommend to the U.S. Army Corps of Engineers, approval of Corona Executive Hangars’ request to permit California Power Systems to operate an avionics installation and general aircraft and engine inspection business based out of the Corona Municipal Airport.
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ANALYSIS:
Corona Municipal Code Section 4.12.020 for Commercial Business Establishment states “No person or entity shall engage in any commercial business establishment at the airport without first obtaining the approval of the City Council and the USACOE.” City staff received a request from Steve Rosko, of Corona Executive Hangars, Master Leaseholder of Parcels III, IV and V at the Corona Municipal Airport, for permission to allow California Power Systems (CPS) to commence and operate its business at 2003 Aviation Drive Unit 4 on Parcel V. Staff concurs that CPS would be a viable business operation at the airport and would complement the current compilation of the business and private tenants on the airfield. Their addition will remain within the proportionate composition of business to recreational use of not more than 15 percent of the leased hangar space on the parcel, as required under the Master Lease.
Mr. Rosko has assured staff that CPS will abide by all laws, rules, and regulations of the governmental entities with authority over the Corona Municipal Airport in the operation of its business. Upon obtaining approval from the U.S. Army Corps of Engineers, CPS will obtain a City of Corona Business License and the required business insurance naming the City of Corona and the U.S. Army Corps of Engineers as additional insured.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
This action will have no impact on the City's Airport Fund. Revenues generated by this agreement will be received by Corona Executive Hangers.
ENVIRONMENTAL ANALYSIS:
No environmental review is required because the proposed action is not a project governed by the California Environmental Quality Act.
PREPARED BY: CURTIS SHOWALTER, ADMINISTRATIVE MANAGER
REVIEWED BY: TOM MOODY, GENERAL MANAGER
REVIEWED BY: KERRY D. EDEN, ASSISTANT CITY MANAGER/ADMINISTRATIVE SERVICES DIRECTOR
REVIEWED BY: MICHELE NISSEN, ASSISTANT CITY MANAGER
SUBMITTED BY: DARRELL TALBERT, CITY MANAGER
Attachments:
-Exhibit “A” California Power Systems Airport Vicinity Map
-Corona Executive Hangars Request to the City for Business Operations Approval
-California Power Systems’ Request to operate a business at the Corona Municipal Airport
-Rental Agreement between Corona Executive Hangars and California Power Systems