REPORT TO THE CITY COUNCIL
FROM: FRANCISCO PARTIDA, C.M., C.A.E., USAP, Interim Director of Aviation
Airports Department
BY: MARCOS AYALA, Airports Property Specialist II
Airports Department
SUBJECT
Title
Actions related to the Service Facility Lease Agreements at Fresno Yosemite International Airport (FAT) (Council District 4)
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Approve the First Amendment to the Extended and Restated Service Facility Lease Agreement with Avis Rent A Car System, Inc. (Avis); and
3. Approve the First Amendment to the Extended and Restated Service Facility Lease Agreement with Budget Rent A Car System, Inc.(Budget); and
4. Approve the First Amendment to the Extended and Restated Service Facility Lease Agreement with The Hertz Corporation (Hertz); and
5. Approve the Third Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car Company of Sacramento, LLC. (ERAC).
Body
RECOMMENDATION
Staff recommends that City Council approve the Amendments to the Service Facility Lease Agreements (Amendments) with Avis, Budget, Enterprise, and Hertz, respectively.
EXECUTIVE SUMMARY
Avis, Budget, Enterprise, and Hertz (collectively referred to as “Industry”) each respectively have executed a Service Facility Lease Agreement (Lease) with the City of Fresno Airports Department (Airports). The leaseholds in these Leases are used to provide service and maintenance of rental car fleets used in connection with their respective On-airport Non-exclusive Rental Car Concessions Agreement (Concessions Agreement).
For the Industry to have a Lease, they must also have executed a Concessions Agreement with Airports. The Leases were executed in 2007 have an original termination date of January 1, 2029. The Concession Agreements awarded in connection with RFP# 12501615 have a termination date of March 31, 2031. These Amendments will extend the term of the Agreements to make them concurrent with the Concessions Agreements.
BACKGROUND
The City of Fresno Airports Department executed Leases with the Industry in 2007, as part of the construction of the Consolidated Rental Car Facility (CRCF) at FAT. A portion of the CRCF is the Service Facilities where the Industry performs maintenance and service (cleaning, washing, and fueling) to the cars in their fleet rented by passengers arriving at FAT or locals renting from the Industry’s airport branches.
The other portion of the CRCF is the Ready-Return Lot and customer service counters inside Baggage Claim at the Terminal building. This portion of the CRCF falls under the respective Concessions Agreements. The Industry must have executed both a Lease and a Concessions Agreement to be considered on-airport operators.
The Leases have an original termination date of January 1, 2029. The new Concession Agreements, also being approved by City Council today, have a termination date of March 31, 2031, with one option to extend the term for an additional five-years. These proposed Amendments modify the term of the Leases to make them concurrent with the new Concession Agreements. Additionally, due to their increased market share, Enterprise will begin leasing the service facility formerly leased out to Dollar Rent-A-Car, which Dollar no longer uses. Enterprise’s Amendment adds this additional square footage to their Lease.
The City Attorney’s Office has reviewed and approved the proposed Amendments.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental review of this project and has determined that these Amendments fall within the Class 1 Categorical Exemption for Existing Facilities set forth in CEQA Guidelines, Section 15301 for existing facilities, as it involves no alteration of existing facilities, with no expansion of use, and will not result in any significant negative effects relating to traffic, noise, air quality or water quality. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
FISCAL IMPACT
There is no fiscal impact from the approval and execution of these Amendments to the General Fund. All revenues generated by the Service Facility Lease Agreements are used for the operation and maintenance of the CRCF and FAT.
Attachments:
Notice of Exemption
First Amendment to the Extended and Restated Service Facility Lease Agreement with Avis Rent A Car System, Inc.
First Amendment to the Extended and Restated Service Facility Lease Agreement with Budget Rent A Car System, Inc.
First Amendment to the Extended and Restated Service Facility Lease Agreement with the Hertz Corporation
Original Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car Company of Sacramento, LLC
First Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car Company of Sacramento, LLC
Second Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car Company of Sacramento, LLC
Third Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car Company of Sacramento, LLC