REPORT TO THE CITY COUNCIL
November 20, 2014
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions pertaining to an Airport Hangar Lease at Fresno Chandler Executive Airport (Council District 3)
1. Adopt a finding of Categorical Exemption pursuant to Article 19, Section 15301(a) and (d)/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines to authorize Lease Amendment No. 1 between the City of Fresno and Frank X. Ruiz Avionics, Inc., at Fresno Chandler Executive Airport (FCH)
2. Approve Lease Amendment No. 1 between the City of Fresno and Frank X. Ruiz Avionics, Inc.
Body
RECOMMENDATION
Adopt a finding of Categorical Exemption to authorize Lease Amendment No. 1 with Frank X. Ruiz Avionics, Inc., (Ruiz) and approve Lease Amendment No. 1 between the City of Fresno (City) and Ruiz.
EXECUTIVE SUMMARY
Ruiz Avionics has operated at FCH in the same location since 1988. The company offers the services of a Fixed Base Operator (FBO) for general aviation aircraft that includes aviation fuel sales, aircraft repair and maintenance, and specializes in aircraft avionics and radio repairs. The current lease expired on July 31, 2014, had a term of one year plus two one-year extensions, and is currently in a hold-over status. Lease Amendment No. 1 will extend the term of the Ruiz Agreement an additional five (5) years with an annual rent of $34,428, subject to annual Consumer Price Index (CPI) adjustments.
BACKGROUND
The leasehold consists of: (i) a 9,000 square foot commercial hangar; (ii) a 2,700 square foot office; and (iii) 55,193 square feet of ramp area.
The lease rate represents fair market value at FCH and is consistent with other lease agreements at the airport, as required by Federal Aviation Administration (FAA) regulations. The Ruiz operation at FCH is consistent with the Minimum Standards for Chandler Airport previously adopted by the City Council on July 26, 2005. In addition, a Fuel Flowage Fee is paid in accordance with the Master Fee Schedule.
Lease Amendment No. 1 has been approved as to form by the City Attorney's Office.
ENVIRONMENTAL FINDINGS
This lease falls within the Class 1 Categorical Exemptions set forth in California Environmental Quality Act (CEQA) Guidelines, Sections 15301(a) and (d) (Existing Facilities), as it involves minor or no alteration of existing leasehold structures with no expansion of use, and will not result in any significant negative effects relating to traffic, noise, air quality or water quality. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
LOCAL PREFERENCE
The City's Local Preference Ordinance (FMC 4-108) does not apply because this item did not go through the competitive bidding process.
FISCAL IMPACT
The total estimated revenue from this lease, assuming all five years, is $172,140 plus CPI adjustments and Fuel Flowage Fees. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FCH. Lease Amendment No. 1 will enable Ruiz to continue providing an economic benefit to the City and the airport through fuel sales and aircraft services and maintenance, which attracts non-based aircraft and support aircraft based at FCH. There is no impact to the General Fund from this item.
Attachments:
- Agreement
- Site Map