REPORT TO THE CITY COUNCIL June 21, 2018 FROM: KEVIN R. MEIKLE, Director of Aviation Airports Department SUBJECT ..Title Actions related to the First Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car of Sacramento: 1. Adopt a finding of Categorical Exemption pursuant to Class 1 Section 15301(c) (existing facilities) of the California Environmental Quality Act (CEQA) Guidelines for the First Amendment to the Service Facility Lease Agreement; 2. Approve the First Amendment to the Service Facility Lease Agreement with Enterprise Rent-A-Car at Fresno Yosemite International Airport to provide additional rental car storage space (Council District 4) ..Body RECOMMENDATIONS Staff recommends that the City Council adopt a finding of Class 1 Categorical Exemption, pursuant to Section 15301(c) of the CEQA Guidelines, and authorize the Director of Aviation to execute an amendment to the existing service facility lease agreement with Enterprise Rent-A-Car (Enterprise) related to the lease of additional rental car storage space at Fresno Yosemite International Airport (FAT). EXECUTIVE SUMMARY Enterprise has a need for more space to store rental cars at FAT due to the company's growing market share and to accommodate FAT's increasing passenger growth. The additional space will improve Enterprises operational efficiency and better serve their customers. BACKGROUND Enterprise entered into an agreement for their service facility on June 22, 2007. Since that time FAT passenger activity at FAT has grown 39% and Enterprise has grown their market share from 24% to 43% in 2018. The additional leasehold premises, approximately 27,530 square feet, will be added to Enterprise's Exclusive Use Premises in their Service Facility Lease Agreement which is scheduled to expire January 1, 2029. The monthly rent for this additional parking lot is $2,195.29 with scheduled annual CPI adjustments. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Categorical Exemption set forth in CEQA Guidelines Section 15301(c) (existing facilities), which exempts operation and leasing of existing facilities, because the project includes leasing an existing parking lot to Enterprise and will involve negligible or no expansion of use. Furthermore, staff has determined that 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 is not an award of a service or product agreement. FISCAL IMPACT The annual revenue from the First Amendment to Service Facility Lease Agreement with Enterprise Rent-A-Car will be $26,343.48 plus CPI adjustments. The total additional revenue during the remaining term of the Agreement will be $329,299.50 plus annual CPI adjustments. All revenues generated from the Agreement will be deposited into the Airport Enterprise Fund and contribute to the operation and maintenance of FAT. There is no impact to the General Fund from this action. Attachment: - First Amendment to Service Facility Lease Agreement with Enterprise Rent-A-Car at Fresno Yosemite International Airport - Site Map