To: Board of Supervisors
From: Greg Baer, Director of Airports
Report Title: Approve and Authorize Termination of Hangar Agreement with Lawrence Chan
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Director of Airports to terminate the Hangar Rental Agreement with Lawrence Chan. AUTHORIZE County Counsel to pursue legal action if necessary, Pacheco area.
FISCAL IMPACT:
The Airport Enterprise Fund will cover the cost of any legal action.
BACKGROUND:
In May of 2021, the County entered into a Hangar Rental Agreement (Agreement) with Lawrence Chan (Tenant) to store his aircraft at Buchanan Field Airport (Airport). For the past several years, Mr. Chan has refused to provide proof of aircraft registration and insurance to the County in accordance with the Agreement, was unresponsive during the Airport’s last hangar inspections necessitating Airports staff to cut the hangar lock, and the aircraft has not left the hangar in many years. Given Mr. Chan’s refusal to adhere to the terms of the Agreement, Airports management is recommending termination of the Agreement.
Airports staff is requesting authority to terminate the Agreement pursuant to Section 6 (Term) to provide 30-days’ notice to terminate, and if necessary, pursue legal action against Tenant through County Counsel. Such actions are consistent with adopted Airport policies.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to terminate the Agreement and pursue legal action against Tenant would result in the Airport being unable to enforce adopted Airport policies and procedures.