REPORT TO THE CITY COUNCIL
August 25, 2016
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions pertaining to a Lease Agreement between the City of Fresno and SkyWest Airlines, Inc., for hangar facility and ramp space at Fresno Yosemite International Airport. (Council District 4):
1. Adopt finding of a Categorical Exemption pursuant to CEQA Guidelines section 15301(d), Class 1; and
2. Approve a Lease Agreement between the City of Fresno and SkyWest Airlines, Inc. for a term of three (3) years with options for up to seven one-year extensions at Fresno Yosemite International Airport.
Body
RECOMMENDATION
Staff recommends City Council adopt a finding of Categorical Exemption pursuant to CEQA Guidelines section 15301(d), and approve a Lease Agreement (Lease) between the City of Fresno and SkyWest Airlines, Inc. (SkyWest) for a term of three (3) years and options for up to seven one-year extensions at Fresno Yosemite International Airport (FAT).
EXECUTIVE SUMMARY
SkyWest currently rents and operates a regional maintenance hub at FAT. The current lease was executed November 1, 1992 and, along with its nine amendments, is scheduled to expire on October 31, 2017. Airports and SkyWest agree an updated lease with clarified boundaries, simplified rental rates, and updated lease language is preferable to further amending the current lease. Additionally, SkyWest agrees to construct a new parking lot for employees and rehabilitate an existing hangar door to accommodate their new fleet of aircraft. This Lease will commence September 1, 2016, and will replace the existing lease scheduled to expire October 31, 2017. The monthly rental rate is $52,784.00 for the first three years, then increasing to $63,663.62 monthly plus annual CPI adjustments.
BACKGROUND
SkyWest has ten regional maintenance facilities throughout the United States. SkyWest began operating its FAT maintenance facility in 1998, following its acquisition of th...
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