Skysource Aviation, LLC is an aircraft maintenance and repair company that has recently subleased space from Airport tenant, B & J Properties Limited, LLC, and has begun operating an aircraft repair service at Billings Logan International Airport from the hangar located at 2415 Overlook Drive. To ensure that specific operating requirements will continue to be met, a standard Operating Permit between the City of Billings and Skysource Aviation, LLC is required.  The Operating Permit ensures that the company follows certain operating parameters and procedures, including providing proof that the proper insurance coverage is in place.  The Permit is effective December 1, 2015 through November 30, 2016 and is automatically renewable for one-year periods, unless there have been no operational activities for one year or either party chooses to cancel the Permit with 30 days advance written notice.  A copy of the Permit is on file in the City Clerk's office.
 

City Council may:

• Approve the Operating Permit with Skysource Aviation, LLC; or
• Disapprove he Operating Permit with Skysource Aviation, LLC.

The Airport will charge a nominal administrative fee of $200.00 per year for the Operating Permit.  Since Skysource Aviation is not a direct tenant of the Airport, but a sub-lessee of an existing Airport tenant, B & J Properties Limited, LLC, the Airport will not receive any rental income from Skysource Aviation.  The Airport receives rental income directly from B & J Properties Limited, LLC, currently in the amount of $8,721.12 per year.  Rentals are adjusted annually by the Department of Labor Consumer Price Index For All Urban Consumers (CPI-U), published by the Bureau of Labor Statistics, for the previous twelve months to keep pace with annual inflation.

Staff recommends that City Council approve and the Mayor execute the Operating Permit with Skysource Aviation, LLC.