REPORT TO THE CITY COUNCIL November 20, 2014 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Actions pertaining to On-Airport Ground Lease Agreement at Fresno Yosemite International Airport (Council District 4) 1. Adopt a finding of Categorical Exemption pursuant to Article 19, Section 15303(c) (New Construction) of the California Environmental Quality Act (CEQA) Guidelines to authorize a ground lease agreement between the City of Fresno and ROAM, a General Partnership between AMERICAN AIRBORNE, EMS, a California Corporation; and ROGERS HELICOPTERS, INC., a California Corporation, also known as SkyLife ("SkyLife") at Fresno Yosemite International Airport (FAT) 2. Approve a ground lease for an Administration and Operations Facility at Fresno Yosemite International Airport between the City of Fresno and SkyLife ..Body RECOMMENDATION Adopt a finding of Categorical Exemption and approve a ground lease between the City of Fresno and ROAM, a General Partnership between AMERICAN AIRBORNE, EMS, a California Corporation; and ROGERS HELICOPTERS, INC., a California Corporation, also known as SkyLife ("SkyLife"). EXECUTIVE SUMMARY This lease will total 64,402 square feet of land to construct a new Administration and Operations Facility, plus a future aircraft hangar, to support SkyLife, American Ambulance's air ambulance operations. Refer to attached site plan. The term of the lease will be 20 years, effective December 1, 2014, and the initial fair market rental rate of $.30 per square foot will total $19,320.60 annually, with annual Consumer Price Index (CPI) adjustments. The first phase of tenant improvements will be a 4,000 square foot structure for such operational support as a pilot's lounge, training simulators, offices, restroom, shower and kitchen facilities for flight and medical crews to be dispatch-ready. A planned second phase will include the construction of a 4,200 square foot hangar for repair/maintenance and storage of aircraft. BACKGROUND Since 1991 American Ambulance has been operating helicopters and fixed wing aircraft for rescue and patient transportation services through its air ambulance service company SkyLife at the Fresno Yosemite International Airport. They currently sublease space from Rogers Helicopters. However, the SkyLife operation has outgrown this arrangement and American Ambulance would like to construct its own facilities. SkyLife is a partnership between American Ambulance and Rogers Helicopters and provides rapid air medical transportation for the critically ill, injured, trauma and medical patients. SkyLife started business in 1991 and has safely transported over 14,000 patients. This lease will enable the continued growth of air ambulance services which will provide public health and safety benefits to the Fresno area. SkyLife currently utilizes a Bell 407 and Bell 430 helicopter and a fixed wing King Air airplane. These aircraft are available for rapid response 24 hours per day with a flight nurse, flight paramedic and pilot. SkyLife's primary service area is Fresno, Kings, Madera and Tulare Counties. The lease has been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS This lease falls within the Class 3 Categorical Exemptions set forth in California Environmental Quality Act (CEQA) Guidelines, Sections 15303(c) (New Construction), as it involves new construction under 10,000 square feet of floor area in an urbanized area, and will not result in any significant negative effects relating to traffic, noise, air quality or water quality. 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 (FMC 4-108) does not apply because this item did not go through the competitive bidding process. FISCAL IMPACT Revenue from this lease will be $19,320.60 per year and is subject to annual adjustments based on the Consumer Price Index (CPI). The total estimated revenue from this lease, assuming all 20 years, is $386,412.00 plus CPI adjustments. The rental rate is at fair market value for undeveloped land at FAT, which is consistent with Federal Aviation Administration revenue policy and guidelines. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. This new lease will provide a public health and safety benefit to the local region by helping facilitate growth of the air ambulance service. There is no impact to the General Fund from this item. Attachments: - Agreement - Site Map