REPORT TO THE CITY COUNCIL
September 19, 2019
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions related to the First Amendment to the Lease Agreement between the City of Fresno and United Parcel Service, Inc., at Fresno Yosemite International Airport:
1. Adopt a finding of Class 1 Categorical Exemption pursuant to CEQA Guidelines section 15301.
2. Approve First Amendment to the existing Lease Agreement between the City of Fresno and United Parcel Service, Inc., an Ohio Corporation, at Fresno Yosemite International Airport. (Council District 4).
Body
RECOMMENDATIONS
Staff recommends Council adopt a finding of Class 1 Categorical Exemption pursuant to CEQA Guidelines section 15301, and authorize the Director of Aviation to execute this First Amendment between the City of Fresno (City) and United Parcel Service (UPS) to extend the existing lease agreement for operations at Fresno Yosemite International Airport.
EXECUTIVE SUMMARY
UPS's current eleven-year lease at FAT expires on November 30, 2019. UPS has been at its current location running its air cargo operations since August, 1, 2008. The First Amendment will extend the term through December 31, 2021.
BACKGROUND
UPS currently runs an air cargo operation that supports Fresno and the surrounding region from the Air Cargo Ramp on the north side of FAT. The operation uses Boeing 757 aircraft daily with increased frequency during peak holiday periods. FAT's Air Cargo Ramp has sufficient infrastructure in place to accommodate the region's current needs and forecasted growth. UPS represents 53% of all cargo activity at FAT, with approximately 63 million pounds of cargo loaded and unloaded annually.
The current monthly rent is $3,373.86 which is in accordance with the Lease terms. The rent is subject to annual Consumer Price Index (CPI) adjustments. All other Lease provisions shall remain in place as part of the original agreement.
The City Attorney has reviewe...
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