REPORT TO THE CITY COUNCIL
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
THROUGH: MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department
BY: MICHAEL VASQUEZ, Airports Property Supervisor
Airports Department
SUBJECT
Title
Actions related to Lease Amendment No. 3 to the Airport Lease Agreement with Don Williams, an individual, and Jim Wood, an individual, dba BCH Aviation Center:
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines.
2. Approve Lease Amendment No. 3 to Airport Lease Agreement between the City of Fresno and BCH Aviation Center at Fresno Chandler Executive Airport, extending the term of the lease by three years. Amount of revenue generated by agreement extension is $55,155.24, plus annual CPI adjustments. (Council District 3)
Body
RECOMMENDATION
Staff recommends that City Council adopt a finding of Categorical Exemption, pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines, and authorize the Director of Aviation, or designee, to execute Lease Amendment No. 3 to the existing Airport Lease Agreement (Agreement) with Don Williams and Jim Wood, dba BCH Aviation Center (BCH), at Fresno Chandler Executive Airport (FCH), to extend the term of the agreement by three years. The amount of revenue generated by the agreement extension is $55,155.24, plus annual CPI adjustments.
EXECUTIVE SUMMARY
BCH’s current term of thirteen years at FCH expired on April 30, 2020. During the pandemic, BCH was allowed to remain at its current location as a month-to-month holdover. BCH has been at FCH running its aircraft repair business since May 1, 2007. Lease Amendment No. 3 will extend the term through April 30, 2024.
BACKGROUND
BCH entered into a five-year lease with the City of Fresno on May 1, 2007, which was subsequently extended on May 1, 2012 (Lease Amendment No. 1) and on May 1, 2015 (Lease Amendment No. 2) for a total of eight additional years. The leasehold consists of approximately a 6,400 square foot hangar and office building, which includes three tie-down positions on the main ramp. BCH desires to continue operating at FCH under a three-year extension. The current monthly rent is $1,532.09 ($18,385.08 annually), 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 reviewed and approved Lease Amendment No. 3 as to form.
ENVIRONMENTAL FINDINGS
This Agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in California Environmental Quality Act (CEQA) Guidelines, Section 15301 for existing facilities, as it involves no alteration of existing facilities, with no expansion of use, and will not result in any significant negative effects relating to traffic, noise, air quality or water quality. Furthermore, 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 implemented because this item is an amendment to an existing agreement.
FISCAL IMPACT
The revenue for next three years will be $55,155.24, plus annual CPI adjustments. The revenue received during the full term of the agreement (including during the holdover period) is $307,397.76 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 or ratepayers of the City of Fresno from this item.
Attachment: Lease Amendment No. 3 to the Airport Lease Agreement