REPORT TO THE CITY COUNCIL FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department THROUGH: MELISSA GARZA-PERRY, Airports Properties Manager Airports Department BY: BRITTNEY VERROS, Airports Property Supervisor Airports Department SUBJECT ..Title Actions related to the Airline Operations Agreement with G2 Secure Staff, LLC.,: 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines. 2. Approve the Airport Lease Agreement between the City of Fresno and G2 Secure Staff, LLC., at Fresno Yosemite International Airport, with an annual revenue generated in the amount of $51,836.40. The term of the agreement is 3 years. (Council District 4) ..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 the Airport Lease Agreement (Agreement) with G2 Secure Staff, LLC., (G2), at Fresno Yosemite International Airport (FAT). The annual revenue generated is $51,836.40. EXECUTIVE SUMMARY G2 provides under-the-wing service, which typically includes ticketing, boarding gate, wheelchair assistance, and baggage handling operations, on behalf of Southwest Airlines and is operating under a month-to-month Temporary Use Permit (TUP). The TUP will sunset upon execution of this Agreement. This Lease replaces the TUP for a term of 3 years. The annual revenue generated will be $51,836.40 BACKGROUND G2 has been operating at FAT on behalf of Southwest Airlines since April 2021. Their operations necessitate the rental of 765 square feet of Terminal space for administrative support and wheelchair storage. This Proposed Lease allows G2 continued occupancy and use of the office space for three years. The City Attorney has reviewed and approved the Lease Agreement as to form. ENVIRONMENTAL FINDINGS This Agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in 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 relates to an agreement between an airline and their vendor. FISCAL IMPACT The annual revenue will be $51,836.40. Total anticipated revenue to be generated during the full term of the agreement is $155,509.20. 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. Attachment: Airport Lease Agreement