REPORT TO THE CITY COUNCIL
May 18, 2017
FROM: BRUCE RUDD, City Manager
BY: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions related to Amendment No. 3 to the Lease between the City of Fresno and John Tomaino, an individual D.B.A. American Helicopters at Fresno Chandler Executive Airport:
1. Adopt finding of a Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act Guidelines;
2. Approve Lease Amendment No. 3 between the City of Fresno and John Tomaino, an individual D.B.A. American Helicopters at Fresno Chandler Executive Airport (Council District 3).
Body
RECOMMENDATION
Staff recommends Council adopt finding of a Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines for Lease Amendment No. 3, and approve Lease Amendment No. 3 between the City of Fresno and John Tomaino, an individual, D.B.A. American Helicopters (“American Helicopters”), at Fresno Chandler Executive Airport (FCH) to increase the size of the Leased Premises and adjust Rent.
EXECUTIVE SUMMARY
American Helicopters is a helicopter training and rental business that has been operating at FCH since September 2004. They desire to expand operations to accommodate fixed-wing aircraft pilot training services. Additional hangar and aircraft ramp space is necessary to accommodate the expanded service. Refer to the Site Map; Area A is the existing lease premise and Area A1 is the additional lease premise. Amendment No. 3 will increase the size of the Leased Premises and Rent.
BACKGROUND
The expanded lease premises will accommodate a new professional pilot flight training center at FCH. The flight school will be partnering with Reedley Community College’s new Aeronautics Degree program. The new program will provide students with an Associate of Science degree and pilot training from initial private pilot through commercial pilot and flight instructor, which is designed to prepare graduates for entry level pilot employment in the field of aviation. This partnership will begin at the start of Reedley’s fall semester. In addition, students may be eligible for educational benefits through the Chapter 33 Veteran’s Assistance Program. This is an exciting partnership opportunity between the aviation community and the college.
Initial pilot training will accommodate students displaced by the closing of Mazzei Flying Service, which will include approximately 10 to 15 full time students, both foreign and domestic.
Future plans are to grow the school to 50 full time students, to partner with SkyWest Airlines under their Pilot Bridge Program for the training and supply of future airline pilots, and to partner with Reedley College to implement a cutting-edge, nation’s first, electric airplane training program for economically disadvantaged students from the local area who wish to become pilots.
Amendment No. 1 extended the lease term to February 28, 2016. Amendment No. 2 extended the lease term to February 28, 2019. Amendment No. 3 will not change the existing lease term.
ENVIRONMENTAL FINDINGS
Staff has determined a Categorical Exemption is appropriate, based on Class 1/Section 15301 of the CEQA Guidelines, which exempts projects consisting of leasing existing public facilities with negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. This amendment involves leasing existing public structures and pavement, and usage of the amended leasehold will remain aircraft maintenance and flight school activities. Furthermore, staff has determined none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. Staff recommends Council, based upon its own independent judgment, adopt a finding of a Categorical Exemption per Staff determination, pursuant to Sections 15301/Class 1 of the CEQA Guidelines for Lease Amendment No. 3 between the City of Fresno and John Tomaino, an individual D.B.A. American Helicopters at Fresno Chandler Executive Airport.
LOCAL PREFERENCE
The City’s Local Preference Ordinance (FMC 4-108) does not apply as this is not a purchase of services, materials, supplies or equipment, or a competitive bidding solicitation.
FISCAL IMPACT
Amendment No. 3 will generate an additional $1,855.00 per month and is subject to annual Consumer Price Index (CPI) adjustments. The total added revenue from Amendment No. 3 for the remaining term of the lease will be $39,882 plus the annual 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 FCH by providing aircraft services, employment, and local sales tax revenues. There is no impact to the General Fund.
Attachments:
Lease Amendment 3 and Exhibits
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