REPORT TO THE CITY COUNCIL
May 21, 2015
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions pertaining to a Land Lease at Fresno Yosemite International Airport (Council District 4)
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 Aramark Uniform & Career Apparel, Inc. at Fresno Yosemite International Airport (FAT)
2. Approve Lease Amendment No. 1 between the City of Fresno and Aramark Uniform & Career
Apparel, Inc.
Body
RECOMMENDATION
Adopt a finding of Categorical Exemption to authorize Lease Amendment No. 1 with Aramark Uniform & Career Apparel, Inc. (Aramark) and approve Lease Amendment No. 1 between the City of Fresno (City) and Aramark.
EXECUTIVE SUMMARY
Lease Amendment No. 1 will reduce the leasehold size and allow ongoing groundwater well monitoring by Aramark. The amendment also adds a renewal provision, updates rental rates, and provides for an early termination by either party upon completion of well monitoring and clearance by the California Regional Water Quality Control Board (RWQCB).
BACKGROUND
Aramark has leased land identified in the Agreement from City at FAT since 2001 for the purpose of ground water remediation and testing associated with contamination emanating from their facility. The leasehold includes monitoring and treatment wells required by the RWQCB associated with contamination from Aramark's operations at its site located northeast of FAT. Most of the cleanup activity has been completed and the RWQCB authorized Aramark to close all but one testing well, which has been done in compliance with City and State requirements. Monitoring Well 32 (MW32) has not been closed and will require continued monitoring.
The existing Agreement incorporates automatic renewals through May 31, 2030 and no mutual termination clause. Lease Amendment No. 1 will establish a new Term for a period of five (5) years with two (2) additional automatic renewals of five (5) years each, subject to earlier termination with or without cause by either Party giving sixty (60) days' notice to the other Party. The Amendment will also reduce leasehold size from 2,700 square feet to 1,741 square feet and allow Aramark a right of entry to MW32.
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
Annual rent paid by Aramark will be $2,757.74 for the initial five (5) year term, for a total of $13,788.70. If exercised, annual rent paid during the two subsequent five-year renewal terms will be $4,053.05 and $5,954.22 respectively. Total potential revenue over the fifteen (15) year period will be $63,825.05. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. There is no impact to the General Fund from this item.
Attachment:
- Aramark Lease Amendment No. 1