REPORT TO THE CITY COUNCIL April 22, 2021 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Actions related to the Airline Operations Agreement with Southwest Airlines: 1. Adopt a finding of Categorical Exemption pursuant to Article 19, Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines to authorize a new Airline Operations Agreement with Southwest Airlines Co. to provide Commercial Air Service at Fresno Yosemite International Airport. 2. Approve a new Airline Operations Agreement between the City of Fresno and Southwest Airlines Co. at Fresno Yosemite International Airport. (Council District 4) ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Class 1 Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines, and authorize the Director of Aviation, or designee, to execute a new Airline Operations Agreement (AOA) between the City of Fresno and Southwest Airlines Co. (Southwest), for operations at Fresno Yosemite International Airport (FAT). EXECUTIVE SUMMARY Southwest is a Texas-based airline that will commence commercial air service at FAT on April 25, 2021. Executing the AOA will provide the operational, financial, and legal framework for Southwest to operate at FAT. Southwest will have four (4) daily scheduled flights to Denver, CO and Las Vegas, NV. From these locations, Southwest flies to destinations throughout the United States. As FAT's ninth airline, Southwest will provide additional travel opportunities for Fresno and the surrounding region. BACKGROUND AOAs allow the airlines to provide commercial air service at FAT, which include, but are not limited to, provisions for, (i) use of the airfield and terminal facility, (ii) payment of rates and charges in accordance with the City of Fresno adopted Master Fee Schedule, (iii) insurance and indemnification, (iv) term and termination provisions, and, (v) operations and maintenance protocols. The AOA terms and conditions are consistent with the other AOAs at FAT. The term will be through April 24, 2024. The insurance and indemnity provisions have been reviewed and approved by the City of Fresno Risk Management Division. The City Attorney has reviewed and approved AOA as to form. ENVIRONMENTAL FINDINGS Staff has determined this project falls within the Class 1 Categorical Exemptions set forth in the California Environmental Quality Act Guidelines, Article 19, Section 15301 (Class 1/Existing Facilities), which exempts leasing of existing facilities that involves negligible or no expansion of use, as it involves the continuation of an existing lease with no changes to usage. Furthermore, staff has determined none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference is not applicable because this AOA does not involve the award of a construction or consultant agreement. FISCAL IMPACT Revenue from the AOA will be deposited into the FAT Enterprise Fund. There is no impact to the General Fund or City of Fresno ratepayers from this item. Attachment: - Airline Operations Agreement