REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department BY: MELISSA GARZA-PERRY, Airports Properties Manager Airports Department SUBJECT ..Title Actions related to the Lease Agreement Amendment No. 3 with Transportation Security Administration (TSA) for Terminal Space at Fresno Yosemite International Airport (FAT). (Council District 4) 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines 2. Approve the Lease Agreement Amendment No. 3 (Amendment) with Transportation Security Administration (TSA), for Terminal Space at Fresno Yosemite International Airport for a term of three (3) additional years. The amount of potential revenue generated by this Lease is $604,208.15 over the additional term. (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 Amendment with TSA, for Terminal Space at FAT for an additional term of three (3) years. The amount of potential revenue generated by this Amendment is $604,208.15. EXECUTIVE SUMMARY Pursuant to federal law, TSA provides the security screening of airline passengers and baggage at those US airports with scheduled passenger airline services, such as FAT. TSA pays rent on occupied exclusive use space (locker rooms, break rooms, training rooms, and administrative offices). Under this Amendment, TSA will continue to lease a total of 2,593 square feet of such space at FAT's passenger terminal through January 31, 2026. BACKGROUND TSA's core function is to protect the nation's transportation systems to ensure freedom of movement for people and commerce. Their presence at FAT generates approximately 100 jobs. TSA's responsibilities include, but are not limited to, security screening of airline passengers and checked baggage, as per federal regulations. TSA has been an FAT terminal tenant since October 8, 2002. The current lease was entered into on January 2015 for a term of three (3) years, Amendment No. 1 was executed in 2017 for an additional three (3) years, and Amendment No. 2 was executed in 2020 for an additional two (2) years. TSA contacted the Airport with a request to extend the agreement for an additional three (3) years for a total term of the full agreement of eleven (11) years. The City Attorney has approved the Amendment as to form. ENVIRONMENTAL FINDINGS This Agreement falls within the Class 1 Categorical Exemption for Existing Facilities set forth in the 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 is regarding an existing tenant that desires to continue operating at FAT. FISCAL IMPACT The potential revenue generated by this Lease will be $604,208.15. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. The total revenue collected for the entire term of the Agreement and Amendments is $1,591,845.81. There is no impact to the General Fund or ratepayers of the City of Fresno from this item. Attachment: - Amendment No. 3 to TSA Agreement at FAT