REPORT TO THE CITY COUNCIL FROM: FRANCISCO PARTIDA, C.M., C.A.E., USAP, Interim Director of Aviation Airports Department BY: JOSHUA CASTELLANO-GONZALEZ, Assistant Director of Finance and Administration Airports Department MELISSA GARZA-PERRY, Airports Properties Manager Airports Department SUBJECT ..Title Actions related to the Land Lease and License Agreement with the Department of Air Force for Fresno Air National Guard Base (CANG) at Fresno Yosemite International Airport. The total anticipated revenue is nominal for the forty (40) year term of the Agreement. (Council District 4) 1. Adopt a finding of Exemption pursuant to Section 15061(b)(3) (Common Sense) and Class 1/Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; and 2. Approve the new Land Lease Agreement to Department of Air Force for Fresno Air National Guard Base (CANG) for a lease term of forty years with an annual nominal revenue of $3.00. (Council District 4) ..Body RECOMMENDATION Staff recommends that City Council adopt a finding of Exemption pursuant to Section 15061(b)(3) (Common Sense) and Class 1/Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines, and authorize the Director of Aviation, or designee, to execute the Land Lease Agreement (Agreement) to Department of Air Force for Fresno Air National Guard Base (CANG) at Fresno Yosemite International Airport (FAT), for a lease term of forty years with the annual nominal revenue of $3.00. EXECUTIVE SUMMARY "The 144th Fighter Wing's primary federal mission is to provide air defense protection for California and the United States from the Mexican border to Oregon, utilizing the F-15-C Eagle fighter jet. In support of the air defense mission, Airmen and aircraft are periodically deployed for months at a time." (CANG Economic Impact Report, 2021). The 144th also responds to the requests of the Governor of California, when needed. According to the CANG Economic Impact Report, in 2021, the 144th had an impact of $158,549,619.00, this includes 1,070 Military Personnel, 36 Civilian Personnel, and 1,066 Total Dependents. The 144th Fighter Wing is a vital and appreciated component of the US air defense system and an important contributor to the local economy. BACKGROUND The 144th Fighter Wing of the California Air National Guard (CANG) is based at FAT and currently operates F-15-Cs with the expectation that new F-15-EXs being stationed in the near future. CANG uses the same runways, taxiways, navaids, etc. as the commercial airlines and general aviation. The current Land Lease Agreement with CANG is dated April 28, 1999, for the term of forty-eight years. During the first twenty-four years of the Agreement, CANG returned some parcels that were a part of the original Agreement. With the expected addition of the F-15-EX, the mission of the 144th continues to remain strong. The proposed Agreement allows for additional term to April 30, 2065, and includes the lease of the former United States Marine Corp (USMC) ramp and base area. CANG plans to relocate the alert mission over to the North side of the airfield to allow for consolidated operations for the mission. CANG will pay fees for the USMC ramp and base area, in addition to the already existing fees for the munitions area, and the main base. 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 Land Lease and License 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. Furthermore, the "Common Sense" exception to set forth in the CEQA Guidelines, Section 150601(b)(3) applies to this project. FISCAL IMPACT The annual estimated revenue from the Agreements will be a nominal $3.00. The revenue received during the full term of all of the Agreement (from 2025-2065) is estimated to be $120.00. All revenue will be deposited into the Airports Enterprise Fund and will contribute to the operation and maintenance of FAT. There is no impact on the General Fund or ratepayers of the City of Fresno from this item. Attachments: Land Lease and License Agreement Notice of Exemption