LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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AIRPORT - APPROVAL OF LEASE BETWEEN THE CITY OF PENSACOLA AND THE UNITED SERVICES ORGANIZATION
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RECOMMENDATION:
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That City Council authorize the Mayor to execute a Lease Agreement with the United Services Organization (USO) at Pensacola International Airport. Further, that City Council authorize the Mayor to take all actions necessary relating to the execution of the Lease Agreement.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The United Services Organization (USO) is a congressionally chartered, nongovernmental, nonprofit organization whose mission is to enhance the quality of life for military personnel, single or married, and their families by helping them adjust to the special rigors of a transient military life style and by fostering a viable partnership between the military and the civilian communities. To accomplish that mission, the USO outfits and staffs both a military airport center and an information booth (for general customer assistance) in the Pensacola International Airport’s passenger terminal building.
In consideration of the activity, the Airport and USO desire to enter into a lease agreement for the space utilized and the services provided. The term of the lease shall be for a three (3) year period with two (2) additional one (1) year renewal options at the City’s discretion.
PRIOR ACTION:
January 12, 2017 - City Council approved a Lease Agreement with USO.
FUNDING:
N/A
FINANCIAL IMPACT:
The USO is assessed a rental rate identical to that charged the signatory airlines serving the Airport. However, as the USO is providing services that would otherwise be provided by the Airport, the USO is given a rent credit for the number of hours expended annually in both the military airport center and information booth calculated at the then current minimum wage rate in the State of Florida. In contract year 2020, the USO provided approximately 1,092 combined hours of staffing, which resulted in a rent credit of $70,761.60. This offset the rental amount for the same period of $61,069.89.
It is projected that the annual rent credit will continue to equal or exceed the annual rental amount due.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
9/22/2021
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator - Administration & Enterprise
Matthew F. Coughlin, Airport Director
ATTACHMENTS:
1) USO 2022 Lease Agreement
PRESENTATION: No end