REPORT TO THE CITY COUNCIL
September 24, 2015
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions pertaining to On-Airport Fresno Airparts Facility Lease Agreement at Fresno Chandler
Executive (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 Joyce Andrews DBA Fresno Airparts Company at Fresno Chandler Executive Airport (FCH)
2. Approve Lease Amendment No. 1 between the City of Fresno and Joyce Andrews DBA Fresno Airparts Company at Fresno Chandler Executive Airport (FCH)
Body
RECOMMENDATIONS
Adopt a finding of Categorical Exemption to authorize Lease Amendment No. 1 between the City of Fresno and Joyce Andrews DBA Fresno Airparts Company.
EXECUTIVE SUMMARY
The existing five year Lease expired on June 30, 2015. Fresno Airparts has been continuously operated by Wayne C. Andrews and his wife, Joyce C. Andrews as an aircraft parts supply business in the same location at FCH, under a series of consecutive leases, since 1994 and desires to continue operating in the same location for five more years. Amendment No. 1 will extend the term through June 30, 2020.
BACKGROUND
“Fresno Airparts” is nationally and internationally known and valued in the general aviation (GA) business, particularly among those in the operations and maintenance of older GA and antique aircraft. They are the longest running, continuous advertiser in “Trade A Plane,” the 3X monthly publication of aircraft and aircraft parts for sale. Their full page ads appear on the first page of every edition. Most of their business is mail-order, but they do some walk-in business, and they do attract some pilots to FCH. The proposed lease is for existing facilities and continues the existing uses. The lease may be terminated by either party with 60 days’ notice without cause. The insurance and indemnity provisions have been approved by the City Risk Department.
Fresno Airparts desires to continue operating at FCH under a five year extension, at an annual rent of $14,400, which is in accordance with the Lease terms. The rent is subject to annual Consumer Price Index (“CPI”) adjustments (typical for all new or renewed Airport Department leases).
Lease Amendment No. 1 has been approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDING
This lease falls within the Class 1 Categorical Exemption for Existing Facilities set forth in California Environmental Quality Act (CEQA) Guidelines, Sections 15301(a) and (d), 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
Local preference was not considered because this lease amendment does not include a bid or award of a construction or services contract.
FISCAL IMPACT
The revenue from this lease will be $14,400 per year, and is subject to annual adjustments based on the CPI. The total estimated revenue from this lease for five years is $72,000, plus CPI adjustments. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FCH. In addition, this continued business will provide an economic benefit to the City and the airport through aircraft services, employment, and local sales tax revenues. There is no impact to the General Fund from this item.
Attachments:
Agreement
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