EPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: JORDAN CONARD, Property Specialist I
General Services Department
SUBJECT
Title
Actions pertaining to a Lease Agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company, for the continued lease of office/hangar space for the Police Department’s Air Support Unit located at 4941 E Andersen, at the Fresno Yosemite International Airport
1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines
2. Approve a three-and-a-half-year lease agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company in the amount of $44,604 annually, with annual increases by the greater of 3.5% or the CPI Adjustment, plus the proportionate CAM (Common Area Maintenance) charges at $2,220 annually
Body
RECOMMENDATION
Staff recommends Council adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the CEQA Guidelines. Staff also recommends the approval of a three-and-a-half-year lease agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company. The lease agreement is for office/hangar space at 4941 E Andersen, at the Fresno Yosemite International Airport. The lease amount is $44,604 annually, the rate will increase based on the greater of 3.5% or the CPI Adjustment, plus the proportionate CAM charges at $2,220 annually.
EXECUTIVE SUMMARY
Since 1996, the Police Department’s Air Support Unit (Skywatch) has leased one aircraft hangar operated by Signature Flight Support LLC located at the Fresno Yosemite International Airport. The hangar space and adjoining office are necessary for the Air Support Unit’s operations and to store the Department’s two helicopters. The General Services Department and Police Department have negotiated a three-and-a-half-year lease with Signature Flight Support LLC for 6,195 square feet of office/hangar space. The term of the proposed lease will end on June 30, 2026. The proposed negotiated lease rate in the first year is $2,262 for 5,295 square feet of hangar space and $1,455 for 900 square feet of office space ($3,717 per month). The rate will increase based on the greater of 3.5% or the CPI Adjustment. In addition to the monthly rent due, the City will also pay the proportionate CAM charges at $2,220 annually.
A non-appropriation clause is included in the lease agreement should the City desire to cancel the lease.
BACKGROUND
The Police Department’s Air Support Unit (Skywatch) provides the City with aerial support to the Field Operations Division of the Police Department. Limited air support is provided to other units, departments, and agencies as needed within the greater Fresno area. By utilizing the Skywatch team police officers can reduce the speed of ground units, distance themselves from pursued vehicles, and reduce the potential for hazards arising from high-speed pursuits. With an average response time of 39 seconds, the Skywatch team continues to play a major role in reducing the Police Department’s overall response time to emergency calls.
The Police Department currently has 8 full-time staff positions and two helicopters in this division. The staff has identified that the office/hangar space at 4941 E Andersen continues to meet the needs of the Air Support Unit.
This office/hangar space has been occupied by the Police Department since 1996. The Police Department’s Air Support Unit’s (Skywatch) lease ended on December 31, 2022, and is seeking to renew the lease that provides 6,195 square feet of office/hangar space with an effective term of January 1, 2023, through June 30, 2026.
The proposed negotiated lease rate is $2,262 for 5,295 square feet of hangar space and $1,455 for 900 square feet of office space ($3,717 per month). The rate will increase based on the greater of 3.5% or the CPI Adjustment. In addition to the monthly rent due, the City will also pay the proportionate CAM (Common Area Maintenance) charges at $2,220 annually.
The lease agreement has been reviewed and approved by the City Attorney’s Office as to form.
ENVIRONMENTAL FINDINGS
Staff has performed preliminary environmental assessments of this project and has determined this project is exempt under Section 15301/Class 1 (Existing Facilities) of CEQA Guidelines as it involves no alteration of existing facilities, with no expansion of use. Furthermore, none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines, Section 15300.2, apply to this project.
LOCAL PREFERENCE
Local preference is not applicable to this type of agreement.
FISCAL IMPACT
The lease payments for this space have been appropriated in the General Fund for FY2024 under the Police Department. Funding for future years will be included in the appropriate fiscal year’s budget subject to Council approval.
Attachment:
Lease Agreement
LLC Certificate