Actions pertaining to a Lease Agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company, for the continued lease of office/hangar space for the Police Department’s Air Support Unit located at 4941 E Andersen Avenue, Suite B-101, at the Fresno Yosemite International Airport 1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines 2. Approve a three-year lease agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company in the amount of $54,768 annually, with annual increases by the greater of 3.5% or the CPI Adjustment, plus the proportionate CAM (Common Area Maintenance) charges at $3,288 annually

REPORT TO THE CITY COUNCIL FROM: BRIAN BARR, Director General Services Department MINDY CASTO, Police Chief Police Department SUBJECT ..Title Actions pertaining to a Lease Agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company, for the continued lease of office/hangar space for the Police Department’s Air Support Unit located at 4941 E Andersen Avenue, Suite B-101, at the Fresno Yosemite International Airport Adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines Approve a three-year lease agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company in the amount of $54,768 annually, with annual increases by the greater of 3.5% or the CPI Adjustment, plus the proportionate CAM (Common Area Maintenance) charges at $3,288 annually ..Body RECOMMENDATION Staff recommends Council 1) adopt a finding of Categorical Exemption per staff determination, pursuant to Section 15301/Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; 2) approve a three-year lease agreement between the City of Fresno and Signature Flight Support LLC, a Delaware limited liability company in the amount of $54,768 annually, with annual increases by the greater of 3.5% or the CPI Adjustment, plus the proportionate CAM (Common Area Maintenance) charges at $3,288 annually for the continued lease of office/hangar space for the Police Department’s Air Support Unit located at 4941 E Andersen Avenue, Suite B-101 at the Fresno Yosemite International Airport. EXECUTIVE SUMMARY Since 1996, the Police Department’s Air Support Unit (Skywatch) has leased three separate interconnecting hangars and adjoining office operated by Signature Flight Support LLC located at the Fresno Yosemite International Airport. The hangar space and adjoining office are necessary for Skywatch’s operations and to store the Department’s three helicopters. The General Services Department and Police Department have negotiated a three-year lease with Signature Flight Support LLC for 6,195 square feet of office/hangar space. The term of the proposed lease will end on June 30, 2029. The proposed negotiated lease rate in the first year is $54,768. The rate will increase based on the greater of 3.5% or the CPI Adjustment. In addition to the monthly rent due, the City will also pay the proportionate CAM charges at $3,288 annually. A non-appropriation clause is included in the lease agreement should the City desire to cancel the lease. BACKGROUND The Police Department’s Air Support Unit (Skywatch) provides the City with aerial support to the Field Operations Division of the Police Department. Limited air support is provided to other units, departments, and agencies as needed within the greater Fresno area. By utilizing the Skywatch team police officers can reduce the speed of ground units, distance themselves from pursued vehicles, and reduce the potential for hazards arising from high-speed pursuits. In addition to being a force multiplier, the real time information Skywatch provides to the officers on the ground facilitates critical de-escalation strategies and tactics. With an average response time of under 60 seconds, the Skywatch team continues to play a major role in reducing the Police Department’s overall response time to emergency calls. The Police Department currently has 8 full-time staff positions and three helicopters in this division. The staff has identified that the office/hangar space at 4941 E Andersen Avenue continues to meet the needs of the Air Support Unit. In addition, Signature Flight Support, LLC, provides ancillary support services to Skywatch including bulk fuel delivery to Skywatch’s storage tank, occasional aircraft refueling, and access to the conference and customer service area within main office. This office/hangar space has been occupied by the Police Department since 1996. The Police Department’s lease ended on June 30, 2026, and is seeking to renew the lease that provides 6,195 square feet of office/hangar space with an effective term of July 1, 2026, through June 30, 2029. The proposed negotiated lease rate in the first year is $54,768. The rate will increase based on the greater of 3.5% or the CPI Adjustment. In addition to the monthly rent due, the City will also pay the proportionate CAM charges at $3,288 annually. CAM is defined as operating expenses incurred by the Landlord in maintaining, repairing, and operating the common areas of the property.  This can include maintenance and landscaping, fire suppression system maintenance and certification, security and access controls/phones, utilities, and property insurance.  The City’s proportionate share of CAM is based upon the square feet leased proportioned to the total rentable square feet of the building.  The lease agreement has been reviewed and approved by the City Attorney’s Office as to form. ENVIRONMENTAL FINDINGS Staff has performed preliminary environmental assessments of this project and has determined this project is exempt under Section 15301/Class 1 (Existing Facilities) of CEQA Guidelines as it involves no alteration of existing facilities, with no expansion of use. Under Section 15301/Class 1, the proposed project is exempt from CEQA requirements when the project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The key consideration is whether the project involves negligible or no expansion of use. Section 15301/Class 1 applies because the proposed project includes the lease of existing facilities for the purpose of aircraft storage and aircraft operational support by the Police Department which has been under continuous lease agreement since 1996. The project does not involve new construction, ground disturbance, or increased capacity beyond existing facilities and previous use. Accordingly, the project will not have a significant impact on the environment. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2, apply to the project. Furthermore, the proposed project site is a developed property and is not expected to have a significant effect on the environment. Accordingly, a categorical exemption, as noted above, has been prepared for the project and the area is not environmentally sensitive. LOCAL PREFERENCE Local preference is not applicable to this type of agreement. FISCAL IMPACT The lease payments for this space have been appropriated in the General Fund for FY2027 under the Police Department. Funding for future years will be included in the appropriate fiscal year’s budget subject to Council approval. Attachments: Categorical Exemption Lease Agreement Levine Act Disclosure