REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, 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 the Non-Exclusive License Agreement to Conduct Commercial Aviation Ground Handling and Support Services with Unifi Aviation, LLC, a Delaware Limited Liability Company, at Fresno Yosemite International Airport. (Council District 4) 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines; and 2. Approve a Non-Exclusive License Agreement to Conduct Commercial Aviation Ground Handling and Support Services (License) with Unifi Aviation, LLC., a Delaware Limited Liability Company (Unifi), at Fresno Yosemite International Airport (FAT) for the Initial Term of three (3) years, with one (1) option to extend the Initial Term for an additional three (3) years for a total Extended Term of six (6) years. The amount of potential revenue generated by this License is approximately $249,984.50 annually, which represents the sum of eleven percent (11%) of Unifi's monthly gross revenue from all its operations at FAT. Total anticipated revenue during the life of this License (including the Extended Term) is approximately $1,499,907.00. ..Body RECOMMENDATION Staff recommends that the City Council (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 this three (3) year License, which includes one (1) three-year option, with Unifi Aviation, LLC., a Delaware Limited Liability Company (Unifi), to continue operating and providing Commercial Aviation Ground Handling and Support Services at FAT. The amount of potential revenue generated by this License is approximately $249,984.50 annually, which represents the sum of eleven percent (11%) of Unifi's total monthly gross revenues from all its operations at FAT. Total anticipated revenue during the life of this License (including the Extended Term) is approximately $1,499,907.00. EXECUTIVE SUMMARY Unifi is operating as a commercial aviation ground handler, which includes providing various support services, to one or more air carriers who are variously engaged in the transportation by air of persons, property, cargo, and mail to and from FAT. Unifi's latest agreement to operate at FAT as a commercial aviation ground handler expired on August 21, 2023. Consequently, Unifi is currently operating at FAT as a holdover. This License would allow Unifi to continue operating at FAT potentially through December 31, 2029. BACKGROUND Unifi (f.k.a. DAL Global Services, LLC., a Delaware Limited Liability Corporation) has operated as a commercial aviation ground handler, which includes providing support services, to one or more air carriers at FAT since August 2012. Unifi (f.k.a. DAL Global Services, LLC., a Delaware Limited Liability Corporation) initially entered a non-exclusive License Agreement with the City of Fresno, Airports Department (Airports Department), on August 22, 2012, which was subsequently amended by a First Amendment (dated October 6, 2015) and a Second Amendment (attested August 31, 2018). Unifi does not currently lease any office space within FAT's terminal building. Under its latest agreement, which expired on August 21, 2023, Unifi paid an annual sum of $240,043.55 (August 1, 2022, through July 31, 2023), which represented the sum of ten percent (10%) of Unifi's total monthly gross revenues from all its operations at FAT. Due to the increase in air carrier operations (including ramp activities/movements) at FAT, for the life of this proposed License, the Airports Department and Unifi agreed to increase the percentage sum of Unifi's total monthly gross revenues by one percent (1%) to eleven percent (11%). Consequently, under this proposed License, the annual amount of potential revenue generated by Unifi's total monthly gross revenues from all its operations at FAT would be approximately $249,984.50. In addition, this proposed License would allow Unifi to continue to operate, without any disruption, as a commercial aviation ground handler, which includes providing support services, to more than one air carrier (i.e., Delta Airlines and United Airlines) currently servicing FAT. The City Attorney has reviewed and approved this License as to form, and Risk Management has reviewed and approved all insurance requirements. ENVIRONMENTAL FINDINGS This is not a "project" for the purpose of CEQA pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference is not applicable because this is not an award of product, services or construction agreement. FISCAL IMPACT The total potential revenue during the life of this License (including the Extended Term) will be approximately $1,499,907.00. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. There is no impact to the General Fund or ratepayers of the City of Fresno from this item. Attachments: Non-Exclusive License Agreement to Conduct Commercial Aviation Ground Handling and Support Services at FAT for Unifi Aviation, LLC., a Delaware Limited Liability Company