REPORT TO THE CITY COUNCIL
June 20, 2019
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions related to an Aviation Land and Building Lease and Agreement with Flight Level Aviation, LLC.:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act Guidelines
2. Approve a Lease between the City of Fresno and Flight Level Aviation, LLC., to operate as a Fixed Based Operator and related aviation operations at Fresno Chandler Executive Airport (Council District 3)
Body
RECOMMENDATION
Staff recommends Council adopt a finding of Class 1 Categorical Exemption, pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines, and authorize the Director of Aviation to execute an Aviation Land and Building Lease and Agreement (Lease) with Flight Level Aviation, LLC. (Flight Level), to operate as a Fixed Based Operator (FBO) and related aviation operations at Fresno Chandler Executive Airport (FCH).
EXECUTIVE SUMMARY
Flight Level currently operates a charter service at Fresno Yosemite International Airport (FAT) and desires to expand their General Aviation presence by opening a maintenance facility and FBO at FCH. The new FBO will provide Central Valley’s aviation community additional options related to aircraft maintenance, private pilot support services, fuel sales, etc. The term of the Lease is for five years, with a 30 day termination notice without cause.
Background
Flight Level’s current location is not able to accommodate its growing needs, and as a Reliever Airport, FCH offers an ideal opportunity to further support the General Aviation needs of the Valley. The Lease will allow Flight Level to create a maintenance facility using existing infrastructure at FCH, and provide a full range of aviation services as an FBO. An FBO allows support of aircraft up to 12,500 pounds gross weight and can include, (i) retail sales and delivery into-plane of aircraft fuel, lubricants and additives, (ii) overnight tie-down and aircraft storage, (iii) minor aircraft maintenance, servicing and repair, (iv) tire “airing” and battery “boosts,” (v) pilot and passenger waiting lounge with restrooms, phones and direct-access to the most current aviation weather information, (vi) air-to-ground radio communications, and (vii) removal of disabled Aircraft from the Aircraft Operations Area.
The leasehold includes a combined total of 7,970 square feet of office and hangar space, and 34,131 square feet of open aircraft ramp and fueling space. Refer to attached Site Plan.
The City Attorney has approved the Lease as to form.
ENVIRONMENTAL FINDINGS
Staff has determined this project falls within the Class 1 Categorical Exemptions set forth in the Section 15301 of the CEQA Guidelines for Existing Facilities, as it involves the use of existing structures in place at Fresno Chandler Executive Airport, with no changes to usage. Furthermore, staff has determined 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 was not applied because this Lease does not include a bid or award of a construction or services contract.
FISCAL IMPACT
The first year rent is $25,481.76 and is subject to annual Consumer Price Index adjustments. The rent is based on Fair Market Value, which is required by Federal Aviation Administration Revenue Policy. The estimated revenue generated under the Lease for the initial five year term will be $127,409 plus annual CPI adjustments. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FCH. There is no impact to the General Fund from this action.
Flight Level will provide a necessary and valuable service at FCH and contributes to the economic development of the community and surrounding region. The ability to provide additional services as an FBO will further enhance the viability of FCH and the economic impact.
Attachments:
- Aviation Land and Building Lease and Agreement
- Site Plan